Press Releases
December 2011
Rickard Keen helps client expand aviation business.
Rickard Keen has recently help a client expand his aviation business by buying a 50 % stake in an aircraft maintenance business.
Tony O'Neill owns Sussex Flying Club, based at Shoreham Airport, and has enjoyed using Rickard Keen as his accountants for over 30 years.
As well as owning the flying club, which he bought after taking flying lessons with them as a hobby in 2009, Tony also runs East Sussex-based Target Motor Sports.
Since acquiring the flying school in early 2010, Tony and the team have changed the rather tired fleet to modern, well equipped light aircraft such as Piper Warrior and Archer III's, as well as Cessna 152's and an Arrow for complex training.
This has given the school one of the most up to date fleet of aircraft at Shoreham and possibly the country, however this has brought its own problems.
To combat this problem, Tony enlisted the help of trusted friend and accountant – Rickard Keen partner Noel Kelleway – to purchase 50% of KB Aviation, based at Shoreham Airport.
"One of the biggest costs for any aviation business is Aircraft Maintenance," said Tony.
"I was aware that if we were to progress and grow, we needed our own in-house maintenance. This is not something that you can just set up. Even if there were promises available, which there were not as Shoreham, maintenance away from your home airport is fraught with problems such as weather and extra costs.
"I approached KB Aviation, one of the longest established businesses at the airport and after initial talks, agreed on a 50% purchase of the business."
However, due to "over complication" by lawyers, the purchase nearly broke down after eight months of negotiations, and was in-part saved by Noel.
"Despite the fact that both parties wanted the same thing, the whole deal was very close to falling through," said Tony.
"At a meeting with Steve Banaeian (the owner of KB), we asked the question "why do we need the Solicitors?" We had a willing buyer, a willing seller and no major differences why can the deal not be done? I then called Noel and asked him the same question.
"We instructed the Solicitors that we no longer wished them to act on this. Noel and Steve's accountant David Alcock did a fantastic job in rescuing a rapidly failing deal.
"I look upon Noel as a close and trusted friend as well as an integral part of my business interests. I have never had to go else where for advice because Rickard Keen has a wide range of expertise. Quite simply, without Noel, this transaction would not have happened."
Noel said: "I was delighted to be able to help Tony expand his business with the purchase of KB Aviation.
"With his business experience and enthusiasm, I am confident KB Aviation and Sussex Flying Club will have a great future working in partnership."