According to Signature Aviation, which operates the world’s largest FBO chain – Signature Flight Support, business aircraft activity continues to show an improving trend.
The company saw a 38% decline in revenues during the first six months of 2020 as a result of country lockdowns and travel restrictions in response to the coronavirus pandemic. In April the company noted a 77% reduction in activity year-on-year. However business aviation is now showing signs of recovery with May down an average of 58% from the same period in 2019. In June it was down just 32%.
Mark Johnstone, Signature Aviation’s CEO commented: “Since our AGM statement in mid-May, flight activity across our global network has continued to show an encouraging recovery and, in the US, with the support of the CARES Act, we have now called back all our furloughed staff. As we look forward, I remain confident in the resilience and potential of our market leading FBO business model, the quality of our unique network, the strength of our liquidity and therefore our ability to continue to invest in and grow our attractive and high return business.”
To further demonstrate the company’s positive outlook, Johnstone confirmed that Signature Aviation has recently reached an agreement to acquire two FBOs in Geneva and Sion in Switzerland. He added, “Finally, and as a precautionary measure given the macroeconomic uncertainties, we have secured a covenant waiver from our relationship banks for December 2020 and June 2o21.”
The company has also continued to invest growth capital during the COVID-19 period, recently opening its newly constructed Atlanta FBO, which has been built to LEED silver standard.