To be successful they realised they needed a business jet charter marketplace to drive demand. So they decided to launch that as well. One of their professors suggested they focus on the marketplace and park the air taxi idea. The Avinode charter marketplace launched in 2002.

CAMP Systems this week agreed to buy Avinode and two smaller FBO software businesses – FBO One and Total FBO –  for $200m. The professor was right.

It is a good deal for World Kinect (the energy company formally known as World Fuel) which acquired Avinode in 2014. World Kinect will use the cash to pay down debt and focus on its core fuelling business. It has clearly made a good return on its investment. World Kinect took control in 2019 just before its main business was hit with grounded airlines.

“We are excited about the possibilities the partnership between our companies will bring to our customers,” said Oliver King, chief executive officer, Avinode Group.

The acquisition also makes a lot of sense for CAMP Systems, the aircraft maintenance tracking business. CAMP Systems is itself owned by Hearst, a 136-year-old private company. Hearst is best known for publishing regional newspapers like the San Francisco Chronicle (which it launched in 1887) and magazines like Cosmopolitan, Good Housekeeping and Harper’s Bazaar. But along with newspapers, TV and magazines it has three significant business-to-business data divisions: Fitch Ratings, healthcare and transportation.

The transportation division includes data that helps mechanics fix trucks and cars. This includes MOTOR, a magazine that Hearst has owned for more than 120 years. MOTOR has evolved from a print consumer magazine into a data business for car repair, parts and insurance. Aviation is just as significant to Hearst.

Hearst acquired CAMP Systems in 2016 from private equity firm GTCR. (GTCR is now an investor in JSSI and has supported it buying two aircraft maintenance tracking companies that are rivals to CAMP.)

CAMP Systems then bought Inventory Locator Systems, the spares marketplace, from Boeing in 2019. In 2021 it bought a majority stake in FlightBridge, a workflow system that connects business jet operators with FBO, car handlers, hotels, airlines and catering companies.

When the deal closes in May, Avinode will fit into CAMP’s Marketplaces Group along with ILS, FlightBridge and Amstat – the aircraft listing marketplace.

“This represents a complementary extension of our business and platform to bring exciting new opportunities to the market and better serve our expanding customer base,” said Sean Lanagan, president and chief executive Officer, CAMP Systems.

World Kinetic did not run a formal sales process, instead it contacted companies that had already approached it in the past. The business could have fitted well with Directional Aviation’s spin-off Tuvoli (which has FlyEasy, a rival marketplace and a payment system competitor). It might also have been of interest to Portside, the flight department software company which raised $50m in private equity from investor Insight Partners (and recently acquired the rights to Wheels Up’s AVIANIS software). The founders of Wheels Up had also tried to buy Avinode several times.

King and the senior management team have no plans to leave. This includes Per Marthinsson, one of the three founders, who is Avinode’s chief revenue office.

The other two founders are backing a European car charging start-up. It was branded before they joined, but is genuinely called ChargeNode.

The post CAMP Systems buys Avinode appeared first on Corporate Jet Investor.

The partnership enables private charter brokers to book flights seamlessly and instantly, according to the companies. “This game-changing integration … [offers] a user-friendly platform that simplifies the booking and payment process for private charter brokers, while enhancing the experience for their clients,” they claimed. 

The new service is said to offer four key benefits: real-time availability, transparent pricing, a streamlined booking process and “unparalleled” customer support. Real-time availability offers private charter brokers access to Verijet’s fleet of Cirrus Aircraft Vision Jets; ensuring the latest availability information, greater booking flexibility and faster turnaround times.

Transparent pricing, with real-time pricing information, aims to enable brokers to present clear and accurate quotes to clients without delays or hidden costs.

The streamlined booking process is said simplify the booking process, reducing administrative burdens for brokers and delivering a seamless experience for clients. Also, both companies pledged to provide “exceptional customer support” to assist brokers in delivering top-tier service to their clients.

Richard Kane, co-founder and CEO, Verijet described the partnership as “a pivotal moment” for private aviation. “We are excited to empower private charter brokers with the ability to access real-time availability and instantly book private charter flights,” he said.

Allison Ortiz Kane, co-founder and chief experience officer, Verijet added: “This revolutionary partnership aligns with our mission to make private aviation accessible and convenient for all.”

Greg Johnson, president and CEO, Tuvoli said the company was committed to delivering solutions that leverage the latest fintech and booking technology to create efficiencies for brokers and operators. “Private jet charter brokers can now leverage a dynamic booking experience backed by the latest technological advancements while Verijet benefits from the efficiencies of a completely digital sales channel,” said Johnson.

Meanwhile, read our profile of Verijet, published in Corporate Jet Investor Quarterly earlier this year.

The post Verijet and Tuvoli launch real-time booking for charter brokers appeared first on Corporate Jet Investor.

Overall business aviation dropped 2% since November 2021. Among the top 10 airports in the US, only Teterboro and Dallas Love Field were busier this November. Alongside this, midsize jets saw the largest year-on-year decrease in sectors flown, with activity down 12% since last year, only up 1% in comparison with November three years ago.

It’s the same story in Europe too, with business jet demand in the continent “unambiguously sagging” according to WINGX. For the full month of November bizjet flights fell 15% compared with last year and Europe has now seen four consecutive months of decline against 2021. The busiest European airport, Paris-Le Bourget, France, saw the largest falls in activity, with the first few days of December 28% less busy than December 2021. The worst performers in Europe were large cabin jets, which had been an area of strength for many previous months. Argus’ Traqpak activity report noted a drop of almost 40% in Europe since November last year.

December is looking quieter on all fronts, with all bizjet aircraft types starting the month with fewer flights than last year. Charter traffic is tracking just over 10% lower than last year for the first seven days of December, according to a report by Tuvoli.

But the business jet bounce passing may not be the worst thing. It could bring the industry some much-needed relief, according to Tuvoli’s president and CEO, Greg Johnson.

“In an environment where regional airlines are offering $150k signing bonuses for pilots, where the supply chain is still extremely challenged and where FBOs are closing early due to staffing issues, a pullback in demand of 10 to 15%, which is what I think we’re looking at, feels more like a relief valve than a harbinger of doom,” he says.

Although he is cautious about companies relying on new clients. “If the ‘Covid flyers’ are a significant portion of a company’s business, that would be cause for concern, because the pullback is coming primarily from this segment.”

Jay Mesinger, CEO and president, Mesinger Jet Sales thinks a bit of a cooler market is actually the perfect temperature. “Let’s see what starts to happen next quarter,” he told CJI’s Miami conference. “The days on the market will lengthen some, we’ll get a little bit more supply and we’ll get back to a healthy centre line that’s balanced.”

He added: “We can’t forget that we’re a dynamic market so we’re always shifting, but it’s about how fast it shifts, how off-guard people are when it shifts, and how predictable the shift can be.”

What goes up, must come down. And fewer flights might offer the opportunity to reset after a hectic three years.

Click here to subscribe to our famous ‘One Minute Week’ e-newsletter; a summary of the week’s most important stories in the business aviation industry

The post This too shall pass, and a boom is no exception appeared first on Corporate Jet Investor.