Bill Gates Joins Private-Equity Firms in $4.7 Billion Deal for Private-Jet Company

Commercial flying in much of the world has fallen sharply amid travel restrictions, quarantine rules and steep reductions in flights operated by cash-strapped airlines. Private-jet travel has bounced back quicker. For individuals and companies who can afford it, a private jet offers a way to limit close-quarters exposure to other passengers, as well as providing service to destinations that have been abandoned by airlines.

U.K.-based Signature Aviation said in November that demand had stabilized at 80% of 2019 levels. In comparison, global commercial airlines were operating at around one-third of pre-pandemic capacity then.

The move comes after more than a year of jostling between the three firms, drawn by the relatively quick recovery in demand for private jets. Blackstone and GIP had previously been engaged in a bidding war for the company.

Signature Aviation, formerly known as BBA Aviation, traces its history back to 1879, when it was a manufacturer of textile belts for heavy machinery. It later expanded into making parts for engines and the aerospace industry. During World War II, it manufactured parts for British military aircraft, including the Spitfire.

It now focuses on operations at private-jet airports, predominantly in the U.S., managing services including ground handling, maintenance and refueling. The company operates on five continents and employs around 5,300 staff, according to its website.

While global commercial travel was down 50% in January from a year earlier, business aviation travel—a key indicator for the private-jet business—was down just 9%, according to aviation data specialist WINGX Advance GmbH. Private jets are also used to ferry cargo, and that business is booming. Total flight hours for private-jet cargo planes were up 16% last month from a year earlier, according to WINGX.

Signature Aviation’s closest rival, Macquarie Infrastructure Corp.’s Atlantic Aviation, said in 2019 it would conduct a strategic review that could include a sale. The company is about half the size of Signature, according to Barclays analysts. The review process is ongoing.

Mr. Gates’s firm bought its first holding in Signature Aviation’s predecessor in 2009, increasing its stake in the decade since. He is far from the first billionaire to be attracted to the segment. Warren Buffett, a friend of Mr. Gates, purchased private jet operator NetJets, now a Berkshire Hathaway subsidiary, in 1998. NetJets is Signature Aviation’s biggest customer.

Write to Benjamin Katz at [email protected]