Charter & Fractional
After changes, PrivatAir looks to future
Late last year, PrivatAir sold its U.S.

Late last year, PrivatAir sold its U.S. subsidiary Flight Services Group (FSG) to Britain’s GAMA Aviation. According to the Swiss-based group, this move was not motivated by any problems with the U.S. Federal Aviation Administration over foreign ownership–as had earlier been the case with TAG Aviation’s ownership of AMI Jet Charter–but solely by low profitability and signs of a turndown in the U.S. market.

The spin-off reduced the group’s staff from 540 to about 350 and revenues for 2008 will undoubtedly be less than the $200 million recorded in 2007. Significantly, FSG founder David Hurley is staying on with PrivatAir Holding as vice chairman of the board. As a privately owned company, PrivatAir does not publish any financial figures beyond annual sales, but CEO Greg Thomas predicted that profits will increase this year.