40 Aviation Business Journal | Fall 2020 Cash Flow Continued from page 39 to private equity investors. “Most recently, the pandemic changed the landscape for traveling and helped many to see the value and efficiency that GA offers,” he noted. “The trend looks even more positive due to the ongoing interruptions commercial airlines face today.” In tandem with those dynamics, Laukien pointed to the consolidation trends in the general aviation support industry, currently fueled by the large infrastructure funds and the special purpose acquisition companies, which have helped convince many businesses to change hands recently. “That consolidation also brings uncer- tainty to smaller players as they fear tougher competition in the future,” he said. In spite of the available opportunities, Laukien cau- tioned that there is another side of the coin. “While the Covid-19 pandemic accelerated the growth in the indus- try, it also made merger and acquisition activity more difficult,” he said. “For starters, some companies have handcuffed themselves with the government loan restric- tions. But more importantly, the heated market that started in late 2020 has skewed many financial models, making due diligence much more difficult.” At Black Forest Ventures, Laukien said, the belief is that investing in general aviation offers a more stable, long-term return on investment, especially when com- bined with real estate and low-leveraged financial resources. “That’s why we’ve invested in fixed based operations, such as our Galaxy FBO brand, which is also supporting our other aviation investments, including Wing Aviation and Paradigm Helicopters.” With respect to potential opportunities at airports, Laukien reported that, depending on location, aircraft storage is still in high demand, making FBO and hangar developments of interest to investors. “In fact, there has been a flurry of new development opportunities around the country at major airport locations,” he said. “New air- ports are not being built and greenfield real estate is hard to come by, which is why the majority of new on-airport opportunities are in redevelopment of existing space.” As for the long-term impact of private equity investors on general aviation, Laukien added, “Private equity will ensure the growth of untapped new markets, as some of the larger public corporations may be slow to venture into new opportunities.” About Us Why Choose Us Aeroplex is a preferred provider of aviation consulting, development, property management and project management services to all segments of the aviation industry. Aeroplex Group Parters has more than 150 years of collective and diverse public and private sector industry experience. Consulting Our history of success as both master tenants and airport operators, combined with public-private partnership experience, makes our consulting team a valuable asset for any opportunity. Development & Project Management We deliver mixed-use projects that incorporate premier office, hangar, shop and meeting space to accommodate every mission and economic opportunity. Facility Management Aeroplex Group Partners operates the most prestigious aviation leaseholds in Southern California and beyond. The perfect blend of service, professionalism and experience. Serving the needs of today’s dynamic private & public sector aviation requirements. www.aeroplex.net 3333 E Spring St., Suite 204 Long Beach, CA 90806 (562) 981-2659 [email protected] CONTACT US @aeroplexgroup
