The largest aircraft management business in the US will be created thanks to a joint venture between UK-based groups BBA Aviation (BBA) and Gama Aviation (GMAA). The pair will each put part of their US divisions together to create GB Aviation Holdings which will be 49 per cent owned by the two companies and 51 per cent by US investors including management of the businesses.
Analysts say roughly $2m (£1.6m) of costs should be saved thanks to the merger but the deal will be earnings neutral in 2017 and 2018. No new funds are required for the deal, though, and any capex requirements are believed to be minimal. The merger makes sense as the BBA part of the newly merged entity is focused on the west coast whereas Gama's is east coast centric. GB Aviation will boast 200 aircraft, with more than 90 coming from BBA.
