HILLSBORO, Ore. — Hillsboro Aviation has sold one of its three core business groups, the flight training division, to Renovus Capital Partners and Graycliff Partners.
Hillsboro Aviation will continue to operate its charter and sales and service divisions with a focus on charter services, aircraft sales, MRO, avionics services and parts sales.
This next chapter for Hillsboro Aviation includes a new 45,000-square-foot building on 5.4 acres at the Hillsboro Airport to be completed in early 2016.
The newly renamed Hillsboro Aero Academy, headquartered in Hillsboro, Oregon, is one of the largest combined airplane and helicopter flight schools in the U.S. It provides professional pilot training to domestic and international students from three primary locations in Oregon.
With a fleet of 74 single and twin-engine aircraft and six simulators, the school offers a variety of training, including private, instrument, commercial, certified flight instructor, multi-engine and a number of specialty courses. Hillsboro Aviation has trained students from over 75 countries, including the U.S., Brazil, Germany, China and Taiwan.
The school is approved by the FAA and the Veterans Administration (VA) for the training of U.S. military veterans and is accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC).
Hillsboro Aero Academy’s new majority owners, Renovus Capital Partners and Graycliff Partners, focus on providing capital to companies with high growth potential. In addition to Renovus and Graycliff, Hillsboro Aero Academy’s investors include its General Manager Jon Hay, and Max Lyons, owner of Hillsboro Aviation.
“With the forecasted pilot shortage over the next 20 years, I’m pleased about the added investment that Renovus brings, which enables continued growth for the flight school. Additionally, I am excited about the opportunity to focus more of my time and energy on Hillsboro Aviation’s charter and sales and service divisions supporting their initiatives and expanding our services, ” said Lyons.
As a retired former wall-streeter, I wonder what exactly is the play here? Few young Americans are interested in flying (at least at their own expense) and the geezers are getting chased from the skies (and their hangars) by the passive-aggressive tactics of the Feds.
Short of evidence that Boeing is going to farm out its proposed airline pilot training program to regional schools such as Hillsboro, I can only assume that Chinese entrepreneurs are planning to send thousands of Chinese private pilot candidates for (comparatively) cheap and efficient training over here in order to sell them planes back home.
Mr. Hawkins; the highest risk/lowest return of ALL the profits centers of the traditional FBO is the flight school. Even wonder why the major FBO chains aren’t in it? Just a good pragmatic business decision on the part of Hillsboro’s stakeholders.
I think you are close with the China assumption, but I think they will be training up through Commercial.
Jim; I think Brett may be unto something IF their (the investment groups) long term strategy plan includes the value of LTC (Life Time Customer); train and ultimately SELL a few “birds” as well – very smart indeed!
Most flight training schools in the U.S. are over 90% foreign students, with commitments to sponsors overseas. Many big schools have been purchased by foreign airlines for their exclusive use. U.S. airline pilots are paid too little, and work too much, to attract new workers. Young Americans have no desire to pursue a failing and possibly obsolete profession.
The play could be many things. As the pilot shortage in the U.S. quickly turns into a crisis, a lot of money will be thrown at the problem. Meanwhile, it has been a crisis for some time overseas, and they are throwing money at U.S. flight schools to train their pilots.
The next big thing in the U.S. should be MPL pilots, sort of like physicians assistants for pilots. They have begun using them in the rest of the world and will likely be approved in the U.S. to help with the shortage. They are mostly simulator trained, and Hillsboro doesn’t have the required sims, so they will miss out if that is the direction the industry goes. But there will still be a huge demand for pilots at corporate, there are over 13,000 large bizjets on order in the U.S., they will need more new pilots than will be produced in the next decade.
Thanks Sherman! I am a simple recreational PP and was not aware of the MPL concept. A quick Google search brought me up to speed.