Bain Capital Makes Strategic Entry Into the Fixed-Base Operator Market With APP Jet Center Acquisition
Global investment firm Bain Capital has formally entered the fixed-base operator (FBO) sector, marking a significant expansion of its aviation platform with the acquisition of APP Jet Center, a U.S.-based provider of business and general aviation services. The transaction positions Bain Capital to capitalize on long-term structural growth in private aviation and airport-based infrastructure, particularly at high-quality airports where new development remains tightly constrained.
While financial terms of the acquisition from Ridgewood Infrastructure were not disclosed, the deal underscores Bain Capital’s confidence in the resilience and growth potential of the FBO business model. Leadership of the newly acquired platform will be assumed by Mark Johnstone, the former Chief Executive Officer of Signature Aviation, one of the world’s largest FBO networks.
A Platform Built Around Scarce, High-Quality Airports
APP Jet Center enters Bain Capital’s portfolio with a focused footprint of five strategically located FBOs across the United States. These locations serve some of the country’s most active business aviation corridors, including South Florida, the Washington, D.C. metropolitan area, the San Francisco Bay Area, and Denver—markets characterized by high traffic volumes, strong corporate demand, and limited availability of airport real estate.
These airports are considered supply-constrained, meaning that regulatory hurdles, land scarcity, and environmental limitations significantly restrict new development. As a result, existing FBO operators with established airport relationships and long-term leases benefit from durable competitive advantages, including pricing power, high utilization, and long customer retention cycles.
APP Jet Center provides a comprehensive suite of aviation services, including aircraft fueling, hangar leasing, and aviation real estate solutions, catering to business jet operators, private aircraft owners, and corporate flight departments. Its established presence and operational track record make it an attractive anchor asset for Bain Capital’s newly launched FBO strategy.
Why FBOs Fit Bain Capital’s Investment Thesis
The fixed-base operator sector occupies a unique intersection of real estate, transportation infrastructure, and operational services—a combination well aligned with Bain Capital’s thematic investment approach. Unlike purely transactional aviation services, FBOs benefit from long-term demand drivers and recurring revenue streams tied to aircraft storage, fueling, and ground handling.
Several structural trends are supporting sustained growth in the sector:
- Long-term expansion in private and business aviation activity, driven by corporate travel needs, high-net-worth individuals, and flexible travel preferences.
- Modernization of aircraft fleets, with newer business jets requiring advanced hangar facilities, specialized maintenance environments, and upgraded ground infrastructure.
- Constraints on new airport development, particularly at major metropolitan airports, which protect incumbent operators from oversupply risk.
- Operational intensity, allowing experienced owners to create value through process improvements, capital investment, and customer service differentiation.
These characteristics align closely with Bain Capital’s experience in operationally complex real estate platforms, where active ownership and hands-on management can unlock long-term value.
Leadership With Deep Industry Experience
The appointment of Mark Johnstone as head of the APP Jet Center platform adds a layer of credibility and operational depth to Bain Capital’s entry into the FBO market. During his tenure at Signature Aviation, Johnstone oversaw significant expansion, operational integration, and service enhancements across a global FBO network.
Under his leadership, the APP Jet Center platform is expected to focus on:
- Operational excellence and safety performance
- Employee engagement and retention
- Customer experience enhancements
- Disciplined, selective expansion into attractive markets
Johnstone emphasized the importance of people and safety as foundational elements of the platform’s growth strategy, noting that the success of any FBO depends on trusted relationships with employees, airport authorities, and customers.
Expansion Strategy: Selective and Disciplined Growth
Bain Capital has signaled its intention to actively expand APP Jet Center’s footprint, targeting additional high-quality FBO assets in similarly supply-constrained markets. Rather than pursuing rapid scale for its own sake, the strategy emphasizes thoughtful, market-by-market expansion, supported by capital investment and operational integration.
Chris Leddy, Managing Director at Bain Capital Real Estate, highlighted the importance of disciplined growth, noting that APP Jet Center’s existing relationships with airport authorities and its strong operating foundation provide a compelling starting point for expansion.
Planned investments are expected to focus on:
- Upgrading and expanding hangar capacity
- Enhancing fueling infrastructure
- Modernizing customer lounges and crew facilities
- Improving digital systems and operational workflows
Such investments are designed to address growing demand for hangar storage—one of the most constrained resources in business aviation—while enhancing service quality and operational efficiency.
Private Aviation Demand Supports Long-Term Growth
The acquisition comes at a time when private and business aviation demand continues to show long-term resilience, despite periodic market fluctuations. While flight activity may vary year to year, structural demand drivers—including corporate travel flexibility, time efficiency, and fleet modernization—remain firmly in place.
Importantly, FBO revenues are not solely dependent on flight volumes. Long-term hangar leases, minimum fuel commitments, and multi-year service agreements provide a stable revenue base that can withstand cyclical downturns better than many aviation sub-sectors.
This stability, combined with opportunities for operational improvement, makes FBOs particularly attractive to long-term investors seeking durable cash flows and inflation-resilient assets.
Building on a Long Aviation Investment Legacy
Bain Capital’s entry into the FBO sector builds on its more than four decades of experience investing across the aviation ecosystem. The firm has previously deployed capital across aircraft leasing, aviation services, and transportation-adjacent businesses, developing deep sector knowledge and operational expertise.
This background positions Bain Capital to approach the FBO market not merely as a real estate play, but as an integrated aviation services platform where customer experience, safety, and operational efficiency are central value drivers.
Matt Evans, Partner at Bain Capital Special Situations, emphasized the firm’s conviction in aviation as a long-term growth sector, noting its ability to generate durable value across market cycles when paired with disciplined investment and active ownership.
A Platform Poised for the Next Phase of Business Aviation
With APP Jet Center as its foundation, Bain Capital enters the FBO sector at a time of structural opportunity. Supply-constrained airports, evolving aircraft requirements, and rising demand for premium aviation services create a favorable backdrop for disciplined expansion.
As the platform evolves, Bain Capital’s strategy will likely focus on balancing growth with operational excellence, ensuring that each location maintains high service standards while benefiting from shared best practices across the network.
The acquisition of APP Jet Center marks not just a new investment, but the launch of a broader aviation infrastructure platform—one designed to serve the evolving needs of business and general aviation for years to come.
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