Business Aviation a Growth Area
ATON will take over 51% of the shares in the new group, to which it will bring DCA, while Gerd Brandecker will assume a 49% stake and contribute Cirrus Gruppe, founded by him in 1995. No details have been made available about the valuation of the individual companies.
The aim of the new group is to combine DCA with its opposite number, Cirrus Aviation GmbH, to build one of the leading operators in the European business aviation sector. The number of executive jets used by the company currently stands at 29 and is expected to be increased to 33 in the medium term. Independently of this, a second business division will see regional airlines Cirrus Airlines and Augsburg Airways continue to operate, providing a stable core business with a focus on the German market. In addition, the group will offer technical and training services. The annual sales of all companies in the new airline group amounted to 255 euros last year, with sales of 280 euros planned for 2007.
Two holding companies have been created for operational business and aircraft financing. The operational businesses have been brought together under the roof of AB Aero-Invest GmbH and the investment companies for aircraft financing brought into Aircraft Asset Management AAM GmbH & Co. KG. The ATON group holds a 51% stake in each company, while Gerd Brandecker respectively his Cirrus Holding GmbH holding company hold a 49% stake. Managing directors of the Saarbrücken-based holding companies are Gerd Brandecker and Dr. Martin Kirchner, who is also managing director of ATON GmbH.
The Business Aviation business unit will have its operational base at the site of DCA (previously DaimlerChrysler Aviation) in Stuttgart and at the Cirrus Aviation GmbH site in Saarbrücken. The regional air transport business division will have its operational home in Saarbrücken and Munich.
Tailored business aviation fleet
“This is a case of two strong partners coming together,” explained Dr. Martin Kirchner, on the occasion of the unveiling of this new airline group in the European air transport market. “Business aviation is an attractive growth market. DCA and Cirrus complement each other well, given that there is only minimal overlap between their business activities,” said Gerd Brandecker. The new group will look to actively participate in the likely consolidation within the industry.
DCA has concentrated up till now on German companies, operating their corporate jets. A large part of Cirrus Aviation’s activity consists of serving companies in eastern Europe, an area in which it has developed into one of the leading specialists. Together, the companies offer an attractive mixed fleet made up of 29 business airplanes. Being able to offer a variety of options is important in business aviation, as the planes need to cover widely differing customer needs. The criteria for an aircraft charter can include reach, speed, seating capacity and on-board comfort. A predominant proportion of the fleet will be operated under aircraft management deals, within which planes will be transferred by their owners to DCA/Cirrus Aviation for operations and marketing to their customers.
Says Dr. Martin Kirchner: “Together, and in addition to the larger fleet, the two companies offer a much larger number of sites. Providing coverage of the busiest markets in Europe, including Germany and eastern Europe, with planes and crews stationed on site, constitutes an important step both for the company and its customers”. Further international expansion, in conjunction with the highly decentralized stationing of business jets, will increase productivity and reduce the cost of a flight for those travelling to these sites. A common brand will be created for the Business Aviation division in the coming months. It will be led by Dieter Heinen (DCA), with the rest of the management team consisting of Marc Ambrosius (DCA), Stefan Buschle (Cirrus Aviation) and Jörg Socko (Cirrus Aviation).
