Australia’s leading private aviation services firm Aon has announced a $1.2 billion share sale that will allow it to become the country’s largest corporate aviation company.
The deal comes as the government looks to boost public sector employment to meet the nation’s projected unemployment rate of 8.9 per cent in 2021.
The $1 billion will be used to strengthen Aon’s core services and its new business unit.
Its corporate services will include leasing and leasing out aircraft, managing the fleet of its 737 aircraft, and providing corporate services for commercial and government clients.
The sale also means Aon will become Australia’s biggest corporate aviation provider, with a fleet of more than 3,000 aircraft and more than 4,000 employees.
The new business group, the Aon Group, will be run by chief executive and managing director James Aon, who will also lead the group’s international business unit and will be responsible for Aon services and services to clients around the world.
Mr Aon said he had been working closely with the Department of Foreign Affairs and Trade and the Australian Federal Police and was pleased that the government had recognised Aon was a leader in corporate aviation.
“The government has been very supportive of Aon and I look forward to working with them to further strengthen our services to our clients and the Commonwealth,” he said.
“I’m delighted to continue to play a key role in the AON Group, and I know they’re committed to ensuring our future growth and success.”
Mr Ason said Aon had been a pioneer in the aviation sector and had a long history of providing exceptional services for its clients.
“We are excited to see our services grow in the coming years,” he added.
Aon, which has been Australia’s top private aviation provider since 2001, has been struggling in recent years.
It has struggled to find profitable markets, has struggled with falling profits, and struggled to get more planes on the market.
A new deal with a Chinese partner could boost its profits and help its future profitability, which is now under pressure from low demand from the world’s airlines.