Hispanic Business News- “Milestone Aviation Group anuncia $205 millones en transacciones de arrendamiento de aviones”

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ORLANDO, FL — (Marketwire) — 03/06/11 — Milestone Aviation Group, la primera empresa mundial de financiamiento especializado exclusivamente centrada en los mercados de helicópteros y aviones privados, anunció hoy $205 millones en transacciones. Con este anuncio realizado en la Heli-Expo Asociación Internacional de Helicópteros, Milestone cerró transacciones de 20 helicópteros nuevos y usados por un total de $141 millones y firmó cartas de intención por $64 millones adicionales en equipos.

Las transacciones anunciadas incluyen los siguientes clientes de Milestone:

  • Aeroservicios Especializados, S.A. de C.V. (ASESA) de México;
  • CareFlite de EUA;
  • Global Vectra de India;
  • Helijet International Inc de Canadá;
  • Inaer of Europe; y
  • Omni Taxi Aereo de Brasil.

Estos operadores utilizan los helicópteros en una gama de industrias, tales como gas y petróleo, servicios de emergencia médica (EMS) y contratos de transporte de gobierno.

El total cumulativo también incluye un nuevo pedido significativo de helicópteros Milestone que será anunciado más tarde hoy en Heli-Expo. Milestone está en exposición en Heli-Expo stand 4042 en el Orange County Convention Center en Orlando, Florida, hasta el 8 de marzo.

“Apenas seis meses después de nuestro lanzamiento de Milestone, alcanzamos un valor de $205 millones en transacciones para ofrecer financiamiento de arrendamiento para operadores de helicópteros y aviones privados de primera calidad “, dijo Richard Santulli, presidente del directorio de Milestone. “Estamos encantados de haber adquirido en tal corto tiempo $141 millones en equipos, con otros $64 millones comprometidos, para apoyar a nuestros socios”.

“Creemos que una combinación de propiedad y arrendamiento de activos es esencial para la gestión de nuestro riesgo financiero, lograr nuestros objetivos de crecimiento, y lo más importante, satisfacer las necesidades de nuestros clientes”, dijo Jorge Diaz-Crespo Cardona, CEO de Inaer, el proveedor líder global de servicios de helicópteros de misión crítica. “Milestone ofrece una solución personalizada en le mercado y nos enorgullece estar entre sus primeros clientes”.

Milestone Aviation Group ofrece arrendamiento a corto o largo plazo de cualquier cantidad para nuevas adquisiciones, equipos usados o venta con retroarrendamiento de activos existentes, todo con cien por cien de financiamiento. Milestone, con $500 millones de capital garantizado en agosto pasado para ofrecer financiamiento de arrendamiento a los mercados de helicópteros y jets privados, actualmente está en varias etapas de debates con los operadores de helicópteros y propietarios de jets privados en seis continentes.

“Nuestro anuncio hoy demuestra el alcance y la naturaleza global de las operaciones de Milestone”, dijo William Kelly, director ejecutivo de Milestone. “Nuestra asociación con empresas de primer nivel tanto grandes como pequeñas ofrece una prueba del valor de nuestra oferta de producto y nuestro lugar en la industria”.

AVISOS AL EDITOR
Acerca de Milestone Aviation Group
Milestone Aviation Group es la primera empresa mundial de arrendamiento de aviones centrada exclusivamente en helicópteros y aviones privados. Con sede en Dublín, Irlanda y con operaciones en Colts Neck, Nueva Jersey y Columbus, Ohio, la plataforma mundial de arrendamiento de aviones de Milestone aborda las necesidades de un mercado en transformación. Mayor información está disponible en, www.milestoneaviation.com.

Acerca de ASESA
Aeroservicios Especializados, S.A. de C.V. (ASESA), un líder en la industria aeronáutica desde 1977, es una empresa mexicana especializada en servicios aéreos de helicópteros. ASESA ofrece servicios de transporte de carga y pasajeros, mantenimiento, operaciones, administración, seguridad y protección servicios de consultoría y operaciones de base fija. Como uno de los proveedores líderes de servicios aéreos en México, ASESA ha registrado más de 460.000 horas de vuelo y fue galardonada con el Premio de Seguridad de Operador por la Asociación Internacional de Helicópteros de 2006 – 2009. Más información está disponible en, www.asesa.com.mx.

Acerca de CareFlite
CareFlite, una organización de Texas sin fines de lucro con exención tributaria 501(c)3, patrocinada por los principales hospitales públicos y no lucrativos en el Norte de Texas: Baylor Healthcare, JPS Health Network, Methodist Health System, Parkland Health and Hospital y Texas Health Resources. Más información está disponible en, www.careflite.org.

Acerca de Global Vectra
Global Vectra Helicorp es la mayor empresa privada de helicópteros de India, con una flota de 25 aviones. Global Vectra Helicorp ofrece servicios de transporte de ultramar para la industria de gas y petróleo y a través Birdie, su división en tierra, servicios de chárter y shuttle de aeropuerto para todo el país. Global Vectra Helicorp es parte del grupo de compañías Vectra, con participación en aviación, ingeniería pesada, bienes raíces, información y tecnología y sistemas de seguridad. Más información está disponible en, www.globalhelicorp.com.

Acerca de Helijet International Inc
Helijet con sede en Vancouver, Canadá. Helijet desde hace 25 años, ofrece servicios de conmutador entre el centro de Vancouver y el centro de Victoria, la capital de Columbia Británica. Este es el primer servicio de helicópteros con horario programado en Canadá y hoy continúa utilizando el equipo Sikorsky S-76A. Desde ese primer helicóptero y su primera ruta, Helijet se convirtió en una compañía bursátil ofreciendo una vasta gama de servicios con horario programado y chárter con una flota de 13 helicópteros y aviones y más de 100 empleados. Helijet también provee servicios de ambulancia aérea para el Servicio de Ambulancia de Columbia Británica y a fines de 2010, obtuvo los derechos para continuar ese servicio con tres máquinas Sikorsky S-76C+ para los próximos ocho años. Información adicional está disponible en, www.helijet.com.

Acerca de Inaer
INAER es un proveedor líder mundial de servicios de emergencia de helicóptero para operaciones de misión crítica tales como servicios de emergencia médica, protección civil, búsqueda y rescate en mar y montaña, vigilancia costera y pesquera, lucha contra incendios, capacitación y mantenimiento. Estos servicios se ofrecen para los gobiernos nacional, regional y local. INAER opera en España, Italia, Francia, Reino Unido, Portugal, África del Norte, Chile y Australia y cuenta con una flota de 298 aviones y más de 1.800 empleados. El perfil de clientes y contratos basados en concesiones otorgan a INAER un alto grado de visión de ingresos sobre un período de mediano a largo plazo. Más información está disponible en, www.inaer.com.

Acerca de Omni Taxi Aéreo
Omni Taxi Aéreo forma parte del grupo portugués de aviación Omni. La empresa brasileña fue fundada en 2000 e inició sus operaciones un año después con un helicóptero Bell 212. Durante los últimos diez años, la empresa creció rápidamente y diversificó su flota con diferentes modelos de helicópteros dedicados a la industria de gas y petróleo. Omni está totalmente certificada en calidad, salud, medio ambiente y responsabilidadsocial de conformidad con las normas internacionales y mantiene un récord perfecto de seguridad desde su constitución. Mayor información está disponible en, www.omnibrasil.com.br.

CONTACTOS DE MEDIOS
Lisa Johnson
Milestone Aviation Group LLC
Oficina: +1 (614) 233-2302
Móvil: +1 (614) 886-6600
ljohnson@milestoneaviation.com

Kekst & Company
Eric Berman/Paige Gruman
+1 (212) 521-4894 o
+1 (212) 521-4876
eric-berman@kekst.com
paige-gruman@kekst.com

AIN – “Heli-Expo 2011: Milestone Aviation Logs $141 Million in Helicopter Leases, $64 Million More In the Works”

By Charles Alcock

Aviation International News

Milestone Aviation Group (Booth No. 4042), a global finance company focused on providing leasing of high-value helicopters and private jets, announced at Heli-Expo 2011 that it has closed $141 million in transactions for 27 new and used helicopters since the company was launched in last August. In addition, it currently holds letters of intent for an additional $64 million in aircraft, bringing the total of firm and expected business to $205 million. The company expects to close a transaction on its first business jet, a Gulfstream G450, this week, founder and chairman Richard Santulli told AIN here at Heli-Expo 2011 yesterday.

The company is providing leases to helicopter operators in Mexico, the U.S., India, Canada, Europe, and Brazil, including Aeroservicios Especializados of Mexico; CareFlite, Grand Prairie, Texas; Global Vectra, India; Helijet International, Vancouver, B.C.; Inaer of Europe; and Omni Taxi Aereo of Brazil. These operators use helicopters in a range of industries, such as offshore oil and gas, EMS and government contract transport.

After leaving his position with the NetJets fractional ownership company last August, a company he also founded, Santulli said he had no idea what he planned to do next. However, before starting NetJets, he had been head of the Goldman Sachs leasing group and founder of the highly successful RTS Helicopters, a leasing company, so he knows the aircraft leasing business well. “I have leasing in my DNA. I really have a passion for it,” Santulli told AIN. “I knew there weren’t any companies focusing specifically on leasing helicopters, so I saw an opportunity.”

Fellow founders were CEO William Kelly and managing director Robert Dranitzke, and both former senior executives with NetJets Europe. In fact, all seven members of the Milestone management team are former NetJets people. The company is headquartered in Ireland and has a U.S. office in Columbus, Ohio. Santulli works from his home in New Jersey, but travels a lot. He owns a share of a NetJets Falcon 2000, which he bought for his personal use while he was with the company.

Milestone provides dry leases in which it carries 100 percent of the financing and residual value risk on the new and pre-owned aircraft it buys. “We want to avoid people having to go through credit committee hell,” Kelly said, referring to what can be a torturous process for getting leases approved. “There is just a small group of people involved and we make quick decisions.”

The new firm’s main area of focus is what Kelly called “working-class helicopters,” meaning aircraft involved in activities such as offshore support and logging. He said that helicopters involved in fields like these hold their value well. Milestone expects 70 percent of its business to be outside the U.S., with a strong focus on Africa and Asia.

For helicopter operators, Milestone’s pitch is that leasing equipment reduces risk and conserves working capital, as well as offers tax advantages and improves cash flow. “It also eliminates end-of-useful-life hassles, and these days even finding financing to cover 20 percent of the purchase prices can be tough so leases can ease strapped balance sheets,” he explained.

While raising launch capital for Milestone, Santulli visited the First Reserve private equity group, which owns CHC Helicopters. Back in 1993, Santulli had bought some Eurocopter Super Pumas for CHC at $5.5 million apiece. The aircraft are still in service and First Reserve now values them at between $6.5 and $7 million.

“There are very few dry lessors like us in the helicopter sector, and the manufacturers don’t provide much financing,” Kelly said. “We’re not into the VIP market because that fluctuates a lot, but the working-class helicopters are in demand all the time and all around the world.”

Milestone Aviation is backed by $500 million in capital from the Jordan Company and Nautic Partners private equity groups. The company is expected to raise further equity next year and in the next five or six years wants to lift the value of its portfolio to between $4 billion and $5 billion.

Milestone also intends to be active in leasing fixed-wing aircraft. These could account for around 20 percent of its portfolio and will mainly consist of private jets aged between one and five years in the class of the Bombardier Challenger 300 and larger.

Press Release – “Milestone Aviation Group to acquire five Sikorsky S-76® helicopters”

ORLANDO, Fla., March 6, 2011 – Sikorsky Aircraft Corp. and Milestone Aviation Group Limited jointly announced for the first time today the scheduled deliveries of five Sikorsky S-76C++helicopters to Milestone in the second half of 2011 under a firm order contract signed last December. Milestone, the first global finance company focused exclusively on the helicopter and private jet markets, will offer these aircraft for lease to high-quality operators around the world. Sikorsky is a subsidiary of United Technologies Corp. (NYSE:UTX).

“By leasing out and providing 100 percent financing that ultimately allows end users to operate our aircraft, Milestone Aviation Group has quickly become an important customer for Sikorsky. We enjoy a growing relationship mutually beneficial not only to each other but also to the end users of our aircraft. We look forward to continuing and strengthening this relationship,” said Carey Bond, president of Sikorsky Global Helicopters.

“The S-76C++ is a great helicopter and a workhorse of the offshore oil and gas industry,” said Richard Santulli, chairman of Milestone. “We believe there will be tremendous demand for these machines from operators all over the world. We are thrilled to work with Sikorsky to deliver their product to market.”

The S-76C++ helicopter is the current production model in the S-76® aircraft line. It serves a multi-mission role that includes offshore oil, VIP transport including head of state, emergency medical transport, search and rescue and civil defense. The next variant in the S-76 aircraft line, the S-76D™ helicopter, has entered production, with first customer deliveries scheduled for 2012.

Sikorsky Global Helicopters, a Sikorsky company, develops and produces civil certified helicopters and their derivatives. Its portfolio includes the S-76®, S-92® and H-92™ helicopters as well as the S-300C™, S-300 CBi™, S-333™ and S-434™ light helicopters. Also part of Sikorsky Global helicopters is Associated Aircraft Group (AAG), a provider of charter and fractional ownership services.

Sikorsky Aircraft Corp., based in Stratford, Conn., is a world leader in helicopter design, manufacture, and service. United Technologies Corp., based in Hartford, Conn., provides a broad range of high-technology products and support services to the aerospace and building systems.

Milestone Aviation Group is the first global aircraft leasing company exclusively focused on helicopters and private jets. Headquartered in Dublin, Ireland, and with operations in Colts Neck, New Jersey and Columbus, Ohio, Milestone’s global aircraft leasing platform addresses the needs of a transforming marketplace. Further information is available at www.milestoneaviation.com.

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MEDIA CONTACTS

For Sikorsky:

Paul Jackson

Phone: 203-386-7143

Paul.Jackson@sikorsky.com

Marianne V. Heffernan

Phone: 203-386-4373

mheffernan@sikorsky.com

 

For Milestone:

Milestone Aviation Group LLC

Lisa Johnson

Office: +1 (614) 233-2302

ljohnson@milestoneaviation.com

 

Kekst & Company

Eric Berman/Paige Gruman

+1 (212) 521-4894 or

+1 (212) 521-4876

eric-berman@kekst.com

paige-gruman@kekst.com

Press Release – “Milestone Aviation Group Announces $205 Million in Aircraft Lease Transactions”

Summary

  • Includes New and Pre-Owned Helicopters Used in Oil and Gas, EMS and Government Contract Transport
  • Significant Milestone Helicopter Order to Be Announced Later Today at Heli-Expo

ORLANDO, USA, March 6, 2011 – Milestone Aviation Group, the first global specialty finance company focused exclusively on the helicopter and private jet markets, announced today $205 million in transactions. With this announcement, which was made at the Helicopter Association International Heli-Expo, Milestone has closed on 20 new and pre-owned helicopters totalling $141 million as well as signed Letters of Intent for an additional $64 million in equipment.

The announced transactions include the following Milestone customers:

  • Aeroservicios Especializados, S.A. de C.V. (ASESA) of Mexico;
  • CareFlite of the USA;
  • Global Vectra of India;
  • Helijet International Inc of Canada;
  • Inaer of Europe; and
  • Omni Taxi Aereo of Brazil.

These operators use the helicopters in a range of industries, such as oil and gas, Emergency Medical Services (EMS) and government contract transport.

The cumulative total also includes a significant new Milestone helicopter order that will be announced later today at Heli-Expo. Milestone is exhibiting at Heli-Expo Booth 4042 at the Orange County Convention Center in Orlando, Florida, through March 8.

“In just six months since we launched Milestone, we have already reached $205 million worth of transactions to provide lease financing to high-quality helicopter and private jet operators,” said Richard Santulli, chairman of Milestone. “We are delighted to have acquired in such a short time $141 million in equipment, with another $64 million committed, to support our partners.”

“We believe a blend of asset ownership and leasing is essential to manage our financial risk, achieve our growth targets and, most importantly, meet the needs of our customers,” said Jorge Diaz-Crespo Cardona, CEO of Inaer, the leading global provider of mission-critical helicopter services. “Milestone offers a customised solution in the marketplace and we are proud to be amongst their first customers.”

Milestone Aviation Group provides short or long-term leases of any amount for new purchases, pre-owned equipment or the sale-leaseback of existing assets, all with 100% financing. Milestone, which secured $500 million of equity last August to provide lease financing to the helicopter and private jet markets, is currently in various stages of discussions with helicopter operators and private jet owners on six continents.

“Our announcement today demonstrates the breadth and global nature of the Milestone business,” said Milestone CEO William Kelly. “Our partnership with first-class companies both large and small provides proof of the value of our product offering and our place in the industry.”

* * *

MEDIA CONTACTS

Milestone Aviation Group LLC

Lisa Johnson

Office: +1 (614) 233-2302

ljohnson@milestoneaviation.com

 

Kekst & Company

Eric Berman/Paige Gruman

+1 (212) 521-4894

+1 (212) 521-4876

eric-berman@kekst.com

paige-gruman@kekst.com

 

NOTES TO EDITOR

About Milestone Aviation Group

Milestone Aviation Group is the first global aircraft leasing company exclusively focused on helicopters and private jets. Headquartered in Dublin, Ireland, and with operations in Colts Neck, New Jersey and Columbus, Ohio, Milestone’s global aircraft leasing platform addresses the needs of a transforming marketplace. Further information is available at www.milestoneaviation.com.

About ASESA

ASESA, a leader in the aeronautics industry since 1977, is a Mexican company specialized in helicopter air services.  ASESA offers cargo and passenger transportation service, maintenance, operation, management, safekeeping and guarding, consultancy service and a FBO.  As one of the leading air service providers in Mexico, ASESA has logged over 460,000 flight hours and was awarded the Operator Safety Award by Helicopter Association International from 2006 – 2009. More information is available at www.asesa.com.mx.

About CareFlite

CareFlite, a 501(c)3 not-for-profit Texas company, is sponsored by the leading not for profit and public hospitals in North Texas: Baylor Healthcare, JPS Health Network, Methodist Health System, Parkland Health and Hospital and Texas Health Resources. More information is available at www.careflite.org.

About Global Vectra

Global Vectra Helicorp is India’s largest private helicopter company, with a fleet of 25 aircraft. Global Vectra Helicorp offers offshore transportation services to the oil and gas sector and through Birdie, its onshore division, charter and airport shuttle services throughout the country. Global Vectra Helicorp is a part of the Vectra Group of companies, which is engaged in aviation, heavy engineering, real estate, information and technology and security systems. More information is available at www.globalhelicorp.com.

About Helijet International Inc

Helijet is based in Vancouver, Canada. For 25 years, Helijet has offered commuter service between downtown Vancouver and downtown Victoria, the capital of British Columbia. This was the first scheduled helicopter service in Canada and continues today using Sikorsky S-76A equipment. From that first helicopter and first route, Helijet has grown into a publicly traded company offering a wide range of scheduled and charter services with a fleet of 13 helicopters and airplanes and over 100 employees. Helijet also provides air ambulance service for the British Columbia Ambulance Service and, in late 2010, won the rights to continue that service with three Sikorsky S-76C+ machines for the next eight years. Further information is available at www.helijet.com.

About Inaer

INAER is a global leading provider of helicopter emergency services for mission critical operations such as medical emergency services, civil protection, sea and mountain search & rescue, coast and fishing surveillance, fire fighting, training and maintenance. These services are provided for national, regional and local governments. INAER operates in Spain, Italy, France, United Kingdom, Portugal, North Africa, Chile and Australia, and has a fleet of 298 aircraft and more than 1,800 employees. INAER’s customers profile and concession based contract give the company a high degree of income visibility over the medium to long term period.  More information is available at www.inaer.com.

About Omni Taxi Aéreo

Omni Taxi Aéreo is part of the Portuguese Omni Aviation Group. The Brazilian Company was founded in 2000 and started operations one year later with a Bell 212 helicopter. Over the past 10 years the company has grown rapidly and diversified its fleet with several different helicopter models dedicated to the oil & gas industry. Omni is fully certified in Quality, Health, Environment and Social Responsibility to international norms and has maintained a perfect safety record since incorporation. Further information is available at www.omnibrasil.com.br.

# # #

FT.com – “Flight lines: A factor of Ten”

FT.com

By Rohit Jaggi

Cessna’s unveiling of the Citation Ten, to take over from the $21.7m Citation X that has long been billed as the fastest civilian jet, is much more than a shift away from roman numerals.

The more fuel-efficient Ten will have new Rolls-Royce engines, a new Garmin integrated avionics system, and a “revolutionary” cabin management system developed partly in-house that, says Cessna, is “all about connectivity”.

It will also be 15 inches longer, have a completely revamped interior, and feature as standard the winglets that are approved as aftermarket modifications for the current X, which has not had any significant changes since 2002.

But, while Cessna says it will be quicker than the old one, it is not saying by how much. Gulfstream is snapping at the heels of the Mach 0.92-capable X with its G650 ultra-long-range, ultra-long-cabin, business jet. The G650, which is currently working its way through its flight test programme, has achieved M0.925.

Maximum speed “will be something that we decide when we have tested the airplane,” says Joel Mugglin, product marketing manager for the Ten.

However, Cessna’s preliminary cruise speed chart shows a maximum cruise of about M0.918.

“It’s fair to say it’s faster than today’s airplane at the upper altitudes where people are going to be operating it,” says Mr Mugglin.

Jack Pelton, Cessna president and chief executive, has in the past said to me that the Citation X would keep the high-speed crown.

The Ten is aiming for certification in 2013, price yet to be announced.

The Garmin G5000 system on the Ten is an evolution of the avionics company’s revolutionary systems that have brought sophisticated, flat-screen technology to even the smallest general aviation aircraft.

The Ten is the launch vehicle for the G5000, which is the first Garmin system to be aimed at commercial airliners as well as the upper strata of business aircraft.

The system, controlled by two touch-screens, has also been chosen for three other airframes, says Bill Stone, Garmin avionics product manager. “That’s as of today,” he told me. “Call back tomorrow – it may be different.”

Lift for financing

The inaugural deal at Milestone Aviation, the first finance company to concentrate on the helicopter and private jet markets, will provide 100 per cent lease financing for Brazil’s Omni Taxi Aéreo to buy two new Sikorsky S76C++ helicopters.

The deal completed last month, will allow Brazil’s second largest helicopter operator to meet growing demand from the offshore oil industry.

Hopes are high in business aviation that Milestone, set up by former NetJets executives, will help to take the crisis out of funding.

Wanting in vision

He may have extended the boundaries of helicopter ownership, and use, for ever, but even Frank Robinson’s enthusiasm about spreading the H word has to bow before some forces.

One of which is the weather. Mr Robinson’s attempt to visit the headquarters of one of his helicopter manufacturing company’s two UK distributors was delayed by a fog that refused to burn off until much later than his scheduled arrival time.

After the usual seemingly interminable delays to see whether the weather would improve – in my experience much more a feature of flying in Northamptonshire than in Torrance, southern California, where Robinson Helicopter is based – he was forced to resort to the road to reach Sloane Helicopters at Sywell Aerodrome.

But at least the mist lifted during the afternoon. Enough for the helicopter he was due to travel in – one of his own R44 four-seaters, of course – to have no problems with the short hop to near his hotel at Heathrow.

He did not take the controls himself. In fact he tells me that he has cut back on his flying. “And I plan to continue, partly because I have given so many people my word that I am going to live to be 100 – or more.”

Press Release – “Milestone Aviation Group Closes Inaugural Helicopter Lease”

Omni Taxi Aéreo to add 2 new Sikorsky 76C++ to their fleet

Summary

● Milestone has partnered with Omni Taxi Aéreo of Brazil to provide 100% lease financing for the addition of 2 new Sikorsky 76C++ ($23,000,000 at retail prices)

● Omni Taxi Aéreo, Brazil’s second largest helicopter operator by fleet size, is growing rapidly to meet the needs of Petrobras and the Brazilian oil and gas industry

DUBLIN, IRELAND AND COLUMBUS, USA, October 7, 2010 – Milestone Aviation Group, the first global specialty finance company focused exclusively on the helicopter and private jet markets, today announced that it has closed its first transaction with Omni Taxi Aéreo of Brazil.

Milestone is providing 100% lease financing to Omni to allow the Brazilian operator to add two new Sikorsky 76C++ to their growing fleet. The deal closed in early September. The aircraft are currently undergoing offshore configuration completion at Sikorsky’s Coatesville, Pennsylvania completion centre and are scheduled to be delivered within the next 30 days. The aircraft will be used to service a Petrobras contract ferrying workers to offshore oil platforms.

Richard Santulli, Milestone Chairman said, “we are proud to partner with Omni to help them grow and meet the needs of the Brazilian market. Omni is a great operator and we look forward to supporting them for years to come.”

“It is important for us to have a financial partner that understands our business”, said Rui Almeida, President of Omni Taxi Aéreo. “Milestone is made up of former operators who can relate to our circumstances and who understand our needs. They have proven quick and decisive in providing 100% financing to support our growth plans allowing us to meet the needs of our customers.”

The deal is the first for Milestone. The company which secured $500 million of equity this August to provide lease financing to the helicopter and private jet markets is currently in various stages of discussions with helicopter operators and private jet owners in 18 countries on 6 continents. The company plans to announce its next transaction shortly.

Omni Taxi Aéreo is Brazil’s second largest oil and gas helicopter operator by fleet size with 33 aircraft today and plans to add 7 machines in the next 15 months. The company operates a diverse fleet of AgustaWestland, Bell, Eurocopter and Sikorsky products performing a wide array of services focusing on offshore oil and gas work.

* * *

NOTES TO EDITOR

About Milestone Aviation Group

Milestone Aviation Group is the first global aircraft leasing company exclusively focused on helicopters and private jets. Headquartered in Dublin, Ireland, and with operations in Colts Neck, New Jersey and Columbus, Ohio, Milestone’s global aircraft leasing platform addresses the needs of a transforming marketplace. Further information is available at www.milestoneaviation.com.

About Omni Taxi Aéreo

Omni Taxi Aéreo is part of the Portuguese Omni Aviation Group. The Brazilian Company was founded in 2000 and started operations one year later with a Bell 212 helicopter. Over the past 10 years the company has grown rapidly and diversified its fleet with several different helicopter models dedicated to the oil & gas industry. Omni is fully certified in Quality, Health, Environment and Social Responsibility to international norms and has maintained a perfect safety record since incorporation. Further information is available at www.omnibrasil.com.br.

Corporate Jet Investor – “Milestone Aviation Takes Off”

Corporate Jet Investor – By Alasdair Whyte

William Kelly, the chief executive officer of Milestone Aviation, is clearly enjoying himself. Having stepped down as CEO of NetJets Europe a year ago, he and the rest of the management team are relishing the new challenge.  Milestone, a dedicated helicopter and business aircraft leasing company, only launched in August but has already bought and leased two new helicopters and has four others deals that are close to signing.

“The fun part about any business is growing it,” says Kelly, the former CEO of NetJets Europe. “We took NetJets Europe from 16 aircraft and 89 customers to 165 aircraft and 1,600 customers. Managing a big company is enjoyable, but for me the really fun part is building the business even the times when you have to clean the toilet when there is no-one else to do it!”

While the company is in start-up mode it will not be a small business for long. With Richard Santulli, the founder of NetJets as chairman; Kelly; and five other former senior NetJets executives; $500 million in equity; and offices in Dublin and Columbus it has cash to invest; and is already hiring.

Milestone is principally a helicopter jet leasing company. Kelly says that it eventually expects its portfolio to consist of 80% helicopters and 20% business jets. But the company is keen to take advantage of distressed business jet prices and the management team’s expertise and contacts in the short-term.

“With helicopters our intention is to hold on to them following the expiration of the initial lease. At the end of the lease we will either seek to have the original operator extend the lease or we’ll look to place the helicopter with another operator,” says Kelly. “But with business jets our intention is to sell them at the end of the lease. As business jets are currently undervalued, distressed assets we hope to sell them for a profit of 5%-10%.”

They are only interested in buying pre-owned jets and only expect to concentrate on this market while prices are low. Although they have bid on several private jets they have not yet had an offer accepted. They are also talking with several banks about buying business jet portfolios but Kelly says that it is not a top priority.

Kelly says that they are looking to grow the portfolio to a value of between $4 billion and $ 5 billion within five or six years.

Launching the business

Although most of the team’s experienced is in business jets, Santulli has financed helicopters before NetJets when he ran RTS Helicopter which focused on offshore oil and gas leases in the Gulf of Mexico.

“Before NetJets Rich ran the world’s largest helicopter leasing company,” says Kelly. “After leaving NetJets he looked at the market again and realised that nothing had changed. Helicopters had got bigger and more expensive but no easier to finance.”

Santulli started working on Milestone in October 2009 with a number of colleagues. Kelly joined in March 2010.

Credit Suisse organised road shows in the Middle East and US in April and Milestone spoke to about 40 private equity companies and sovereign wealth funds in total.

Kelly says they had a number of offers but agreed a deal with, lead investor, The Jordan Company and Nautic Partners investing $500 million between them in August. Kelly says one of the things that attracted them to Jordan was that it was prepared to take a longer-term view than many.

The company is registered in Bermuda but based in Dublin to benefit from tax breaks and Ireland’s numerous double-taxation treaties which make it easier to lease foreign-owned assets like aircraft into different countries. Ireland is the base for most of the world’s aircraft leasing companies for this reason. To qualify for the tax advantages companies have to base a significant part of their operations in Ireland. It also helps that Kelly, the company’s CEO is an Irish citizen.

Financing Milestone

Milestone’s financing strategy is different to that of most start-up commercial aircraft leasing companies. This includes Avolon, led by Domnhal Slattery former head of RBS Aviation Capital who then tried to launch air taxi company JetBird, and Steven Udvar-Hazy, the founder of AIG -owned International Lease Finance and now CEO of Air Lease Corporation.

Avolon and Air Lease have chosen to raise debt now to allow them to leverage deals. While Milestone plans to borrow debt later at the moment it is only using the $500 million in equity that it raised.

Most private equity firms like aircraft lessors to use debt straight away to increase returns and lessors are typically looking for long-term debt to match long-term assets (helicopters can have economic lives of over 20 years).  Although pre-owned aircraft should give higher returns so leverage is less important.

“We wanted the $500 million so we could go out and close deals straight away,” said Kelly. “Customers know we can close deals quickly and have all the funding in place to invest $500 million anywhere in the world.”

He says that Milestone is likely to borrow debt in about 18 months to two years and that it will do it on a corporate basis rather than using the portfolio to secure deals. Milestone will be probably be leveraged by between 55% and 65% when they raise debt allowing them to grow a $1.1 billion portfolio with the $500 million of equity they have now.

Global opportunities

Kelly says that they expect 70% of the portfolio to be from outside North America. While most of the business jets they buy will be from the US or Europe, the helicopter business is focused on emerging, commodity rich, markets of Latin America, Africa, southeast Asia and Australia.

“While we see opportunities with the big operators our key market is small-to-medium sized helicopter operators,” says Kelly. “We are just as keen to do deals in Indonesia or Brazil as we are in the US.”

The other big advantage of these markets is that they are less competitive. Milestone is still competing with banks to finance aircraft and, of course, operator’s own cash. Kelly says Milestone’s focus on helicopters and pre-owned aircraft sets it apart from banks which view these as small niches. It is also offering 100% financing.

Unlike many commercial aircraft lessors, Milestone is not planning to place speculative helicopters orders with manufacturers. It will acquire new helicopters through sale/leasebacks with customers. As it is possible to rebuild much of a helicopter’s value through maintenance and replacing parts the average age of the fleet will be less important to Milestone that to commercial aircraft lessors.

Moving fast

This is the third business that Santulli has created since leaving his job running Goldman Sachs’ equipment leasing – RTS Helicopters, Executive Air – later NetJets – and all of them have been fast growing entrepreneurial companies where decisions are made quickly. One example of this at Milestone is its promise to get back quickly to all potential customers.

“We tell them that they may not like the decision but we will get back to them within five days with a decision,” says Kelly. He contrasts this with his time at Proctor & Gamble – which he stresses is a “great, great company” – where he would need to submit a 90 page memo to raise the price of shampoo by around 10 cents.

“We are still a small team so it does not take long for the team to review deals,” said Kelly. “As an accountant and former CFO I am having a fantastic time doing nerdy things like looking through customer’s financial statements.”

And he has not yet had to clean the toilet.

AIN – “Santulli Returns to Bizav with Leasing Company”

Aviation International News – By Matt Thurber

Richard Santulli, founder of fractional-share company NetJets, is back in the Aviation business with a new business jet and helicopter leasing company called Milestone Aviation Group.  Santulli, 66, resigned from NetJets last August but said at the time that he would remain a consultant to the company for a year.  Warren Buffet’s Berkshire Hathaway bought NetJets in 1998 for $725 million.

Milestone Aviation is headquartered in Dublin, Ireland, and Santulli is chairman of the new venture.  Before launching NetJets, Santulli was in charge of equipment leasing for Goldman Sachs Leasing and founded helicopter leasing company RTS Helicopters.  William Kelly, former CEO of NetJets Europe, is Milestone’s CEO.

Milestone is starting with $500 million of equity capital provided by private equity firm The Jordan Company, which is leading the investment team, and partner Nautic Partners.  Milestone will purchase aircraft selected by customers then lease the aircraft to the customer.  The lease covers new, pre-owned and sale-leaseback transactions and customers are responsible for all operating costs for the leased aircraft.

Milestone has already signed one firm customer and is working on deals worth about $110 million in Brazil, Canada and Nigeria, according to Santulli.  He expects about 80 percent of Milestone’s business to be helicopter-related, with business jets accounting for the remainder.  Milestone will lease only turbine-powered aircraft, and helicopters will be available only for customers who use them for revenue-producing purposes such as oil and gas work and aeromedical operations as well as private and government search-and-rescue activities.  About 70 to 75 percent of the helicopter leases will involve oil and gas operators, he said.  The customers that Milestone will partner with have excellent operational and maintenance records, he added, but their balance sheets might be stretched to the point that it’s difficult to obtain traditional financing, making it hard to bid on contracts.  “We are looking to play a predominant role in providing lease financing to companies that otherwise have a difficult time raising financing,” he explained.

Business jet buyers will be able to obtain short-term leases through Milestone, which will offer lease periods as low as one to three years and limit customers to about a dozen jet types.  No deals involving fractional shares will be considered.

Customers will be monitored closely and will have to meet Milestone’s standards for operating and maintaining their aircraft.

Santulli said that he decided to return to the aviation business because in consulting with Kelly and other team members he saw that there wasn’t much competition in the helicopter and business jet leasing arena.  “We felt that we had the ability to service that market well,” he said.  “I believe we will build a successful company and provide help to companies that otherwise would not be able to bid on these contracts.”

Press Release – “Milestone Aviation Group Launches Unique Helicopter And Private Jet Leasing Firm”

Richard Santulli Returns to Aviation with US$500 Million Financing

SUMMARY:

  • Chairman is Richard Santulli, founder of private jet fractional ownership, NetJets, RTS Helicopters
  • Unique focus provides much-needed lease financing to helicopter and private jet communities
  • Secures US$500 million of equity capital

DUBLIN, IRELAND AND COLUMBUS, USA, August 4, 2010 – Milestone Aviation Group, the first global specialty finance company focused exclusively on the helicopter and private jet markets, today announced that it has secured US$500 million of equity capital commitments to launch its business.  U.S. middle-market private equity firm The Jordan Company led the investor team, in partnership with Nautic Partners.

The launch marks the return of Richard Santulli to the aviation industry.  Milestone is the culmination of Santulli’s nearly 40 years of experience in helicopters, private jets and finance.  Santulli is best known for inventing the fractional jet ownership industry and growing NetJets into a successful multinational corporation and one of the world’s premier brands.  Prior to starting NetJets, he founded and grew RTS Helicopters to become the world’s largest helicopter lessor, and ran equipment leasing for Goldman Sachs.  Santulli serves as Chairman of Milestone’s Board of Directors.  He and the rest of Milestone’s management team have purchased, operated and financed more private aircraft than anyone in the world.

“Milestone brings together my experience in helicopters, private jets and finance to address an important and underserved market niche,” said Santulli.  “Starting a new business when I see a marketplace opportunity is what I love to do.  Today, many good helicopter operators worldwide cannot get access to capital despite a demand for their services.  At Milestone, we believe the quality of an operator should be defined by more than just its balance sheet.”

“No one knows this industry better than Richard Santulli and the Milestone team,” said John W. Jordan II, Chairman and Managing Principal of The Jordan Company.  “We couldn’t imagine a more highly qualified partner for this deeply compelling market opportunity.  In the future, I suspect that people will point to Milestone as yet another example of this management team’s visionary leadership.”

Unique Focus on Helicopters and Private Jets

Headquartered in Dublin, Ireland, Milestone is the first global specialty finance company focused exclusively on helicopters and private jets.  Milestone provides aircraft owners and operators worldwide with personalised financing options not otherwise available.  The Company offers 100% financing on new, pre-owned and sale-leaseback transactions.  Customers select their own aircraft and, following a credit review process of 3-5 days, Milestone purchases the aircraft and enters into a lease agreement with the customer.  Customers operate the leased aircraft and cover all operating costs without bearing residual risk.

“Our entire management team has experience in running an aviation company, which helps us uniquely understand our customers’ needs,” said William Kelly, Milestone’s Chief Executive Officer who most recently was the CEO of NetJets Europe.  “We understand safety, flight operations and maintenance.  We believe it is important to look beyond a company’s capital structure into the hangar and cockpit to evaluate the true quality of an operator.”

In the helicopter market, leasing enables customers to stretch their capital further and allows them to compete for lucrative contracts.  Key markets include:  oil and gas exploration and production; air medical service; search and rescue; law enforcement; environment; construction; Coast Guard and other government contracts; fire fighting; forestry; mining; and utility work.

In the private jet market, leasing allows customers to free up capital and avoid residual risk.  Target customers include public and private corporations, high net worth individuals and customers looking for an interim solution while they await a future delivery.

“Milestone offers us another compelling opportunity to invest in the leasing of transportation related assets,” said Richard Caputo, Managing Principal of The Jordan Company.  “We see strong growth drivers for the business and think the Milestone team is uniquely qualified to capitalise on this underserved market.”

Milestone’s Team

The Company is led by an experienced executive team that has purchased, financed and operated billions of dollars of private aircraft – more than any other group in the world.  The team includes individuals with a broad range of experience, including prior management experience in aviation and other industries, as well as leadership in top global financial, capital markets and legal firms.


NOTES TO EDITOR

About Milestone Aviation Group

Milestone Aviation Group is the first global aircraft leasing company exclusively focused on helicopters and private jets.  Headquartered in Dublin, Ireland, and with operations in Colts Neck, New Jersey and Columbus, Ohio, Milestone’s global aircraft leasing platform addresses the needs of a transforming marketplace.  Further information is available at www.milestoneaviation.com.

Full management team bios are available at www.milestoneaviation.com/about/.

About The Jordan Company

The Jordan Company (www.thejordancompany.com), founded in 1982, is a leading middle-market private equity firm with over $5 billion of assets under management and a successful track record of investing in and growing businesses across a wide range of industries.  The firm’s partners have been investing together for more than two decades, establishing The Jordan Company as one of the most experienced and stable investment teams in private equity.  Headquartered in New York, The Jordan Company also has offices in Chicago and Shanghai.

About Nautic Partners

Founded in 1986, Nautic Partners is a middle-market private equity firm with over $2.5 billion of equity capital under management.  The firm has completed over 100 transactions in partnership with management teams and delivered successful results to investors for over three decades.  Nautic invests in companies with proven business models, defensible market positions, and strong growth potential.  Areas of focus include business services, manufacturing, healthcare and communications.  Milestone is Nautic’s sixth investment from its most recent fund, Nautic Partners VI.  For more information visit www.nautic.com.

About the Private Placement

The Company intends to use the proceeds of the private placement to acquire and lease helicopters and business aviation aircraft.  Credit Suisse Securities (USA) LLC served as the Company’s placement agent for the transaction.  Milestone was advised by the law firms of Clifford Chance US LLP and Proskauer Rose LLP.  Acting as legal counsel for The Jordan Company were Mayer Brown and Winston & Strawn LLP.

Original Equipment Manufacturers

Milestone will be purchasing and leasing aircraft from the following companies:

HELICOPTERS

  • AgustaWestland (a Finmeccanica company)
  • Bell (a Textron company)
  • Eurocopter (an EADS company)
  • MD Helicopters
  • Sikorsky (a United Technologies company)

PRIVATE JETS

  • Bombardier
  • Cessna (a Textron company)
  • Dassault Aviation
  • Embraer
  • Gulfstream (a General Dynamics company)
  • Hawker Beechcraft

MEDIA CONTACTS

FOR MILESTONE: US
Kekst & Company
Eric Berman/Paige Gruman
+1 (212) 521-4894 or +1 (212) 521-4876

FOR MILESTONE: IRELAND
Pembroke Communications
Michael O’Keeffe/Nikki Latchford
Office: +353 (0)1 649 6486
Cell: + 353 87 8854072 or
Office: +353 (0)1 649 6486 Cell: +353 86 1026811

FOR THE JORDAN COMPANY
Stanton Public Relations & Marketing
Alex Stanton
+1 (212) 780-0701