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									                                                      Connecting Airports, Businesses, Their People & Suppliers
                                                                                                                           volume 23 number 6

Publisher.. .......................................................................................Missy Zingsheim


EDITORIAL
                                                                     Missy.Zingsheim@cygnuspub.com
                                                                                                      920-563-1665

Editorial Director ......................................................................... John F. Infanger
                                                                                                                           I N S I D E t h e FENCE                                                                    John F. Infanger,
                                                                                                                                                                                                                      Editorial Director
                                                                           John.Infanger@cygnuspub.com
                                                                                                       512-461-7266             Thoughts on the consolidation          the new rules are. Everybody is just on   speculation. At
Assistant Editor ............................................................................ Brad McAllister
                                                                Brad.McAllister@cygnuspub.com
                                                                                                                           of fixed base operations, from one          pause.”                                   the same time,
                                                                                    800-547-7377 ext. 1370                 who has been a long-term FBO player              Next question. At one time, the      this has been
Columnist ............................................................................................. Ralph Hood
                                                                                       ralph@ralphhood.com
                                                                                                                           turned investor ...                         level of commitment of FBO owners         an industry
SALES                                                                                                                           Researching this issue’s Business      wasn’t a question, being that they were   sector rife with
National Accounts Manager.........................................................................Tina Wagner              Profile (page 18) included an inter-        long-time aviation players. In the past   consolidation.
                                                                           Tina.Wagner@cygnuspub.com
                                                                                                        920-563-1621       view with Blake Fish of Quantem FBO         ten years, new money — not aviation            Says Fish, “I think there’s still the
Classified Advertising..................................................................................Bennett Davis      Services, LLC. Fish is a veteran of the     money — bought up FBOs. The ques-         opportunity for consolidation; I believe
                                                                        Bennett.Davis@cygnusb2b.com                        FBO industry — including top posi-          tion remains, what is the level of com-   that. I don’t think it was done.
                                                                                                         920-568-8325
National Automotive & Truck Manager.....................................................Tom Lutzke
                                                                                                                           tions with Signature Flight Support         mitment of the new players?                    “I can’t imagine that the multiples
                                                                                      630-484-8040                         and Atlantic Aviation — who in recent            Comments Fish, “Part of what has     will be what they were, because I don’t
International Representative ..........................................................Lutz Krampitz
                                 Germany, Austria, Switzerland, Turkey, Greece
                                                                                                                           years turned to the FBO investment          occurred in our business, as part of      think you’re going to be able to get
                                                                  krampitz@krampitzvv.com                                  arena that had been a flurry of activity,   this influx of financial capital, is an   the debt levels. So, it’s going to require
International Sales Representative .......................................... Stephanie Painter
                                         UK, Ireland, France, Spain, Netherlands
                                                                                                                           up until the past year or so.               awareness for a lot of us in the indus-   more equity and the return required
                                                          stephanie@painter-lowe.com.                                           On the suggestion that the FBO         try that this is a business at the end    by the investors. The cash flow require-
List Rentals .................................................................................. Elizabeth Jackson
                                              phone: 847-492-1350 ext. 18 • fax: 847-492-0085
                                                                                                                           acquisition frenzy appears to be on         of the day. There are things that we      ments will be higher, so you’re not
                                                                   e-mail: ejackson@meritdirect.com                        hold, Blake comments, “I think it is.       want to do because we believe it’s the    going to be willing to pay as much.
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                                                                                                                           I don’t think anybody knows what the        right thing to do as part of our com-          “I think people are just going to be
http://www.magreprints.com/quickquote.aspx?ID=cygnus                                                                       rules are anymore.                          mitment to aviation, but we also have     more sober and more conservative.
                                                                                                                                “We thought we knew what the           to be smart about how we do them. We           “Certainly, some of the multi-
PRODUCTION
Graphic Designer ................................................................................. Kayla White             rules were at the end of the acquisi-       have to look at them from a business      ples that we saw at the end, you just
Production Services Rep. ............................................................. Carmen Seeber                       tion explosion. You knew where you          perspective.                              couldn’t understand how they could
                                                           Carmen.Seeber@cygnuspub.com
ADMINISTRATIVE
                                                                                                                           thought the multiples would end up;              “That’s a change that occurred in    be paid with the high debt level.
Administrative Assistant ............................................................. Michelle Endres                     you knew what kind of city it was; what     our industry overall. I think there’s a   When you take a place that has a very
CIRCULATION                                                                                                                kind of airport it was. With the level of   discipline in our business that maybe     high multiple and all of a sudden you
Group Circulation Manager .......................................................... Jackie Dandoy
Circulation Manager ..................................................................... Debbie Dumke                     activity down substantially, the valua-     wasn’t there before.”                     cut the business by 25 percent, it’s
CYGNUS BUSINESS MEDIA
                                                                                                                           tions are different and the ability to           Then there’s the question of         a scary prospect. Liquidity becomes
CFO.......................................................................................................... James Ogle   acquire debt is different.                  multiples — what those making the         an issue.”
VP, Human Resources ............................................................... Judy Heidebrecht
VP, Manufacturing & Information Technology ............................... Tom Martin
        
								
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