Signature acquires TacAir.

[Mooneymite]

The consolidation of FBOs and the proliferation of single FBO airports is worrisome to me.  These big FBO chains provide excellent support for jet operators, but we have to share in their "jet prices".

https://www.ainonline.com/aviation-news/business-aviation/2022-03-23/signature-aviation-acquire-tac-air-fbos?utm_hsid=28755669&utm_campaign=AIN Alerts&utm_medium=email&_hsmi=207896218&_hsenc=p2ANqtz--PEgJl2EMGlT1lWcboTvLuUJCpzI08Y95UTNDrVxjfP5yljJy_3rUX8oC6o0YZyj03sJTLLDI4LXKEqoW5A6F1PK__ZQ&utm_content=2&utm_source=hs_email

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Signature Aviation, the parent company of Signature Flight Support, has entered into an agreement to purchase the FBO holdings of TAC Air, which consist of 16 locations throughout the U.S. The Signature Flight Support FBO chain has more than 200 locations globally.

Among the locations are six where TAC Air is the sole service provider: Buffalo-Niagara (New York) International Airport; McGhee Tyson Airport in Knoxville, Tennessee; Texarkana Regional and Fort Smith Regional airports in Arkansas; Shreveport (Louisiana) Regional Airport; and Rick Husband Amarillo (Texas) International Airport.

At Denver Centennial Airport, Signature is already present on the field, as well as at Dallas Love Field, where Signature has three facilities among the several service providers. At three other locations—Bradley International Airport in Connecticut, North Carolina’s Raleigh-Durham International Airport, and Eppley Airfield in Omaha, Nebraska—the move will make Signature the only FBO operator, which may result in the company having to divest one facility at each of those locations.

The agreement also includes TAC Air’s hangar complex at Arizona’s Scottsdale Airport, adding some 65,000 sq ft of aircraft shelter to the existing Signature facility there.

This marks Signature’s first major acquisition since it was purchased last year by a consortium of three private equity firms. Subject to regulatory approvals, the transaction is expected to close in the second half of this year.

Edited March 25, 2022 by Mooneymite

[Boilermonkey]

Disturbing.  Last time I was at a Signature facility they couldn't fill my O2.  "We don't have the adaptors for small planes like yours."

[201er]

The bigger Signature gets, not only the higher the prices, but the crappier the service!

Almost without fail, the more expensive an FBO is, the crappier the service.

[N201MKTurbo]

Two weeks ago I needed to pick up a Comanche to ferry from KRDU to KCHD. The seller was flying from his home drome to Raleigh and then I was to drop him off back there. 

I told him to park at TAC Air not Signature. I had called TAC and they said there would be no charge for him to just pick me up. 

There is no markings on the ramp as to who controls which parking spots and the Signature spots are right next to the TAC spots.

When the seller pulled in a Signature line guy guided him to a Signature parking spot. I got in the plane and we were about to taxi out when a Signature line guy stood in front of the lane and motioned for us to shut down. He said I had to go to the counter. They insisted that I pay them $50 for using their parking spot.

Any plane to the right of the point on the building is TACAir any to the left is Signature. The nose of those jets are on the signature ramp and the tails are on the TACAir ramp.

Edited March 25, 2022 by N201MKTurbo

[1980Mooney]

19 minutes ago, N201MKTurbo said:

Two weeks ago I needed to pick up a Comanche to ferry from KRDU to KCHD. The seller was flying from his home drome to Raleigh and then I was to drop him off back there. 

I told him to park at TAC Air not Signature. I had called TAC and they said there would be no charge for him to just pick me up. 

There is no markings on the ramp as to who controls which parking spots and the Signature spots are right next to the TAC spots.

When the seller pulled in a Signature line guy guided him to a Signature parking spot. I got in the plane and we were about to taxi out when a Signature line guy stood in front of the lane and motioned for us to shut down. He said I had to go to the counter. They insisted that I pay them $50 for using their parking spot.

Any plane to the right of the point on the building is TACAir any to the left is Signature. The nose of those jets are on the signature ramp and the tails are on the TACAir ramp.

How prescient - it is almost as if he knew the deal was going to close.  It's moot now... no matter where you park there it is all Signature. at this point.  

[N201MKTurbo]

1 minute ago, 1980Mooney said:

How prescient - it is almost as if he knew the deal was going to close.  It's moot now... no matter where you park there it is all Signature. at this point.  

I wish the deal would have been the other way around....

[1980Mooney]

16 hours ago, Mooneymite said:

The consolidation of FBOs and the proliferation of single FBO airports is worrisome to me.  These big FBO chains provide excellent support for jet operators, but we have to share in their "jet prices".

https://www.ainonline.com/aviation-news/business-aviation/2022-03-23/signature-aviation-acquire-tac-air-fbos?utm_hsid=28755669&utm_campaign=AIN Alerts&utm_medium=email&_hsmi=207896218&_hsenc=p2ANqtz--PEgJl2EMGlT1lWcboTvLuUJCpzI08Y95UTNDrVxjfP5yljJy_3rUX8oC6o0YZyj03sJTLLDI4LXKEqoW5A6F1PK__ZQ&utm_content=2&utm_source=hs_email

And why are you surprised?

As the article highlights Signature was recently taken private by 3 private equity companies.

"Effective June 1, Blackstone, Global Infrastructure Partners, and Cascade assumed ownership of Signature Aviation, which is now a privately held company no longer publicly traded on the London Stock Exchange,” Signature said in a statement released to AIN. "

It is a classic "roll-up" strategy that the financial buyers are executing.  Buy, consolidate (lay off management, close/combine is at same airport, single supply chain, etc) and raise prices.  The bigger strategy will be to do it regionally (gain size/coverage and critical mass in a region, not just one airport) so that it makes no sense for pilots to shop for lower priced fuel at nearby airports.

[Mooneymite]

2 hours ago, 1980Mooney said:

And why are you surprised?

Ha!  Surprised?  No, nothing Signature does surprises me.  I have tons of "Tailwins Points" from their fuel program and many experiences with Signatures virtually everywhere.   I am still carrying weight from all those "free cookies".  They have everything a jet operator would want, except low prices.

No, I used the word, "worrisome".  

If you don't like the prices at Signature, you can always try Atlantic.  

Airnav.com: Dekalb-Peachtree Airport   Atlanta, GA
		FS      $9.34		25-Mar update
Epps Aviation	Titan	FS      $7.80		24-Mar update
Signature Flight Support	independent	FS      $8.00		25-Mar update
PDK Self-Serve Avgas		SS      $7.00		24-Mar update

Edited March 25, 2022 by Mooneymite