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.

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Oliver King, CEO of the Avinode Group, says: “As an industry, we have just experienced our best growth in a decade in Europe and another strong growth year in the US. Taken together, we are on a high of activity in the sector.”

Analyzing flight requests submitted through Avinode’s online marketplace for buying and selling private air charter, for the year April 1 2017-March 31 2018, all the leading European destinations are showing increased demand for intra-European traffic.

France remains the most popular destination for intra-European business aviation flights, representing 20% of this market. Demand to fly to France rose from 379,771 requests in the year April 1 2016-March 31 2017 to 480,891 requests for the year April 1 2017-March 31 2018 (up 27%). The UK (325,433 requests, up 36%), Spain (321,898 requests, up 44%), Italy (316,032 requests, up 37%) and Switzerland (162,244 requests, up 33%) complete the list of the top five intra-European destinations.

King says: “France remains the biggest player in European private aviation, although the UK is closing the gap and enjoys much higher traffic levels to and from the US. The substantial growth in demand for travel to Spain, after so many difficult years for the country economically, is great to see.

“The strength of the British and French markets is also shown in the fact London Luton Airport-Nice Côte d’Azur Airport is the most popular intra-European route,” continues King. “And Spain should take confidence from the fact Ibiza Airport was the destination for four of the 20 most requested intra-European routes in the year to March 31 2018, with all four of those routes growing in popularity over those 12 months.”

The Cessna Citation Mustang is the most requested business aircraft for intra-European flights. In fact, Cessna Citations fill all five top spots on this list, with the Mustang being followed by the CJ2, XLS, CJ2+ and the XLS+.

King adds: “The number of small jets listed on Avinode by European operators continues to grow. When looking at the entry-level jet, light jet and super light jet categories combined, for example, the numbers rose by 4% between April 2017 and April 2018.”

Flights from Russia dominate traffic into Europe from outside Europe, representing 66% of requests in this market. Away from Russia and the CIS, departures from the US (6% of the market) and Saudi Arabia (4%) lead the way for requests for business aviation flights arriving into Europe from outside Europe.

Four of the six most requested business aircraft types, when flying into Europe from outside Europe, are Bombardier Challengers. The Challenger 604 leads this market, with a 6% share, followed by the Embraer Legacy 600.

King says: “Every day, across 89 countries, users log in to Avinode, SchedAero and PayNode to support their customers. Over the last 12 years, 20m searches have been made on Avinode as buyers look for the best charter option. Much has changed over that time. The question of whether customers will book online has been answered. They will and they do. The challenge for us as an industry is to provide the seamless and transparent service that defines the rest of the travel business. We can’t wait to play our part in this challenge.”

King cautions, however, that uncertainty is growing on what the future holds. “We have seen a sustained period of wealth creation across the globe, combined with significant investment in digital charter models in both the US and Europe. Potential trade disputes, political uncertainty in the US and UK, as well as rising oil prices, threaten growth, particularly in the luxury leisure market of Europe.”

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Tech talent: pictured left to right are Saskia de Jong, Jenne Reed, Alexandra MacRae and Annika Abraham

Business aviation technology company Avinode has made the latest in a series of technology-driven appointments to its senior leadership team, with the promotion of Saskia de Jong to director of sales Americas.

De Jong, previously US key account sales manager, will be based at Avinode’s Miami office.

Annika Abraham, who was promoted to managing director EMEAA last year after six years as CFO, said: “We are thrilled that Saskia has taken up this role, bringing her extensive knowledge and six years of experience of the Avinode platforms to the senior leadership team. This is a particularly exciting time for us as we continue to innovate new tools and products across the entire Avinode Group. Saskia will bring a wealth of insight and fresh ideas regarding the interplay between technology and sales to our growing team.”

De Jong said: “Heading up the sales team at Avinode is a fantastic opportunity, and I am particularly pleased to have taken up this role considering Avinode’s commitment to seeking out and nurturing tech-driven talent. Pinpointing those with a strong background in tech, who understand our changing digital landscape, illustrates the forward-looking perspective that has propelled Avinode to becoming the technological forerunner in business air charter: an outlook which will continue to be reflected in the company’s products, client services and strategies, as well as in our workforce.”

Also joining de Jong and Abraham in the senior management team is Alexandra MacRae, who became Avinode’s head of marketing in July 2017. Other appointments to the senior leadership team during 2017 include Jenne Reed, appointed senior vice president, commercial development and delivery in April 2017.

The Avinode Group has also announced the promotion of Oliver King to CEO, who joined the company in 2011 as managing director. He has global responsibility for its multi-platform technology, comprising Avinode, SchedAero and PayNode. Previous CEO and co-founder Niklas Berg will be taking on an entrepreneurial ambassador role.

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As the premier private jet booking marketplace in the world, Avinode is ideally placed to have an overview on the whole market.

Avinode has seen an increase in charter requests, saying that, in July and August 2017, 625,000 charter requests went through its systems.

Later on, the conversation turns to pricing, with co-founder Per Marthinsson saying that this has begun to stabilise in both the US and Europe, although he sees a clear distinction between the two regions where the US brokers are prepared to discount prices but their counterparts in Europe are not.

“In the past operators might have dropped their prices too much. It is an interesting contrast between Europe and the US. An American broker will say, ‘Here in the US I can haggle the price down to the last $125. If I try that in Europe the operator will hang up on me’,” says Marthinsson.

Also up for conversation is how technology will change the industry. Acting CEO Oliver King leads this section, by first talking about how many different systems Avinode links into every day, and by saying that every year technology gets more sophisticated as well as cheaper.

You can listen to the full conversation by clicking on the link below.

The podcast was produced with the cooperation of Avinode. You can find out more about the company by visiting their website: www.avinode.com

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Avinode recorded a total of more than 532,000 charter requests worldwide. The number of Avinode requested flights in Europe, Middle East and Africa increased by 27% compared to June 2016 – while requests in the US alone increased 112% compared to June 2016.

Oliver King, Acting CEO, Avinode Group said: “Across the business aviation industry, operators are reporting a hike in business for June 2017 versus last year – great news for the industry. There has also been much discussion regarding an upturn in the economic outlook for the eurozone countries. In the Avinode Marketplace, in the eurozone countries alone, we have seen an increase of 30% in June 2017 versus June 2016.”

France saw the greatest demand for business aviation, up 10% in June in the Avinode marketplace versus June 2016. Spain saw impressive growth, with requests up 76%.

The largest growth was in Malta – with inquiries up 300% over June 2016 – mostly driven by operators relocating under the Maltese registry.

“For the summer months, leisure demand to the Mediterranean is really driving the increase this year. Popular destinations such as the Cote d’Azur, Ibiza and Mykonos are all up on last year. Business aviation has not yet returned to its highest levels recorded pre-recession, but the Avinode Marketplace has seen strong growth in the US, now being matched by a positive upturn in Europe, leaving us excited about the foreseeable future for the industry.” Added King.

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While overall flight activity is still 1% lower compared to the summer period of 2015, the addition of the four-yearly UEFA Euro 2016 to the annual F1 Monaco Grand Prix, French Open tennis tournament and Cannes Film Festival are all contributing to the industry’s summer peak period.

“The European business aviation market is still not growing as fast as the market in the US and, according to our most recent figures, is, in fact, slowing.”

Oliver King, managing director, Avinode said: “The European business aviation market is still not growing as fast as the market in the US and, according to our most recent figures, is, in fact, slowing. However, the summer months continue to provide the peak period of the year for Europe, this year with twice as many flights in July as in January 2016. This summer, Europe has plenty of draws for visitors, with France being one of the most popular destinations. Data from the Avinode Marketplace shows there were ten times as many requests for flights to Nice at the end of May 2016 compared to the rest of the year, primarily driven by the F1 Monaco Grand Prix, the French Open and the Cannes Film Festival.”

“Business jet charter requests also surged on 10-11 June 2016 in the ten host French cities of the UEFA Euro 2016 football games. There was a boom in Marseille with 2,600 requests for those two days – a 100-fold increase compared to the same period in 2015. Of those requests, approximately 40% were from Russia. Looking at actual flights flown, there was an increase of 195% business jet flights to Marseille over the Championship’s opening weekend, compared to the same period 2015,” added King.

Outside of Europe, the upcoming Summer Olympics in Rio are having a huge influence on business aviation flight requests. The top 10 summer destinations for requested flight departures from Europe, through the Avinode Marketplace, sees Rio as the second most requested city.

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ALSO READ: Avinode adds Etihad Residence to charter options

Avinode has added IS-BAO to complement the existing Wyvern and Argus safety standard awards two of the industry’s leading safety standard organisations.

“IS-BAO, Wyvern and Argus are the three most highly recognized safety standards in the industry.”

Oliver King, managing director of Avinode, said: “IS-BAO, Wyvern and Argus are the three most highly recognised safety standards in the industry. It was a natural decision to add IS-BAO to the mix, to provide our customers with the best options when it comes to choosing an aircraft.

“Whilst these standards are voluntary, we know from customer feedback that industry safety standards certainly help air charter buyers make an informed and intelligent choice of aircraft within the Avinode Marketplace.”

Kurt Edwards, director general of the IBAC, added: “IBAC is very pleased to partner with Avinode. Having IS-BAO displayed in Avinode’s Marketplace recognises both the global value of IS-BAO and the clear commitment to safety of IS-BAO-registered charter operators.”

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