Gama buys UK air ambulance operator SAS

Gama Aviation has taken on UK-based air ambulance operator Specialist Aviation Services (SAS) for £280,000 via a pre-pack administration.

SAS was put up for sale in December through an ‘accelerated’ process after a financial review concluded its capital structure was not fit for purpose. In early January, Gama disclosed that talks with SAS were taking place.

Gama will receive three air ambulance contracts previously run by SAS and six leased Leonardo AW169s. A Leonardo service center in the UK and two contracts for maintenance in the Middle East will also be acquired by the company.

In 2022, SAS recorded an annual turnover of £24.3 million as well as a pre-tax profit of £2.7 million, in-part driven by one-off gains provided by restructuring.

While the results for 2023 have yet to be published, the company “would have reported an underlying loss”, said a spokesperson for Gama. Despite this, Gama believes the SAS business can be returned to profitability at the pre-tax level during the first half of 2024.

While it has paid a headline price of £280,000 for SAS, UK-listed Gama says the total cost is closer to £3 million once working capital requirements and provisions for restructuring are included.

Marwan Khalek, Gama group Chief Executive Officer, said the acquisition “accelerates the growth” of its special mission business unit, that currently provides air ambulance services in Scotland and Wales.

Khalek continued: “We believe that there is considerable potential within the trade and assets of this business, that over the medium term will enhance the prospects of the special mission business unit.

“However, given the nature of the acquisition, our immediate priority is to ensure continuity of service for the UK air ambulance charities such that they are able to maintain their life-saving operations.”

The UK Civil Aviation Authority has assigned all of SAS’s regulatory approvals to Gama to aid in the transition between providers.