AvStar Aviation Services, Inc. acquires, consolidates, and grows businesses in the general aviation industry with a primary focus on fixed base operations (FBOs), and maintenance, repair and overhaul operations (MROs), both to be branded as one entity, "GateOne". The companies we acquire provide aeronautical services such as fueling, tie-down,hangar facilities, aircraft maintenance and other functions. Its services do not generally include scheduled or non-scheduled operations for a fee. In addition we are implementing a plan to acquire charter operations and enter the air cargo business as well. In essence, we are a full-service provider to civil aviation operations at airports across the U.S. and ultimately around the world.

We will endeavor to acquire a portfolio of fixed base operations and maintenance, repair and overhaul operations at airports that support turbo-prop and light jet traffic and create the next dominant brand, "GateOne". GateOne's business model embraces the philosophy of being the best, not the cheapest. Aircraft owners are more likely to use facilities at a branded name facility they know and trust. We expect to gain that trust by providing a variety of services normally reserved for larger airports, and to exceed the evolving demands of the growing segment of non-commercial air travelers. This concierge approach has been proven successful in the past by the Company's management team. We primarily cater to high income individuals and corporations, with specific needs, who operate their aircraft out of small to mid-sized airports. All the while providing safety, comfort, and reliability.

First, let’s define a couple of terms we'll be talking about:

Fixed Base Operator (FBO): A service center at an airport which offers fuel, oil, tie-down and parking services, hangar facilities, aircraft rental and maintenance, flight planning and instruction, and even additional services such as food, lodging, and transportation.

Maintenance, Repair, and Overhaul (MRO) facility: Primarily serve as support for the FBOs providing services to its clientele, although they too provide services for the general aviation industry.

Together with MROs, FBOs form a multibillion dollar industry for commercial and private aircraft support in the United States. We discuss this in greater detail in the business plan tab.  

Now that we’ve defined those terms, let’s get back to the too-many-options point:

In general an aircraft owner, whether it be an individual or a corporation, prefers to use an FBO facility in close proximity to their home or office. Secondly, should they wish to fly to Dallas, they then would prefer an FBO close to their destination in Dallas. With so many options available - outside of tier 1, and a few of tier 2 airports - no brand name exists to deliver recognizability, comfort, and reliability. We expect that our operating company, "GateOne" will fill that void.

Additionally, the number of private pilots and aircraft ownership has been on the rise since the beginning of the first quarter of 2010. At large commercial airports (think DFW or IAH), FBO services are pretty much set. However these private flyers don’t want to deal with the many other hassles of operating out of a large commercial airport.

At smaller airports, what we call tier 2 and tier 3 airports, FBO services are cobbled together in a jumble, often resulting in unreliable services. This is a big deal in itself, but when you factor in the fact that these private pilots and owners are - for the most part - high income individuals, or corporations, who don’t have time or aren’t accustomed to subpar service, this problem is compounded.

High net worth individuals and corporations are operating private aircraft in record numbers. When they fly into a tier 2 or tier 3 airport instead of a major airport, they are not getting the best possible service.

AvStar will acquire a portfolio of FBO and MRO operations, to be branded "GateOne" at airports across the U.S. These are airports that cater to light jet, turbo-prop, and piston engine traffic. Once acquired, we will improve their service offerings through the strategic use of technology and leveraging the economies of scale, thereby creating the next dominant brand, "GateOne", in FBO and MRO management.

We will accomplish this through the following strategies:

• Focus on the light jet, turbo-prop, and piston engine traffic segment. Targeting this group of clientele will result in significantly less competition. This demographic also represents frequent and sophisticated users of FBO services, who will thus appreciate the conveniences of a full-service FBO which will assure us of high utilization rates.
• Use a rigorous site selection methodology to ensure that the acquisitions and integrations are successful. We have already determined what we believe to be the 12 of the most desirable target airports.
• Improve operations with the strategic use of technology. With each acquisition, we plan to employ an operational improvement plan that utilizes the best systems and technologies.
• Leverage economies of scale and buying power. Fuel is the largest component of revenue and profit for an FBO, and the ability to negotiate discounts for buying larger quantities will have a significant impact on net revenues.
• Build the dominant new brand in FBO management. We believe that there is considerable untapped demand for a new FBO brand that targets the light jet, turboprop, and piston engine segments.
• Build profitable charter and cargo operations by forming alliances with existing charter and cargo operators by providing services to domestic and international unserved, or underserved, destinations.

During the acquisition process, we will focus on smaller airports -- those in the tier 2 and tier 3 markets that larger FBO and MRO companies do not serve. We have chosen to focus on these markets for two main reasons:

Services for tier 2 and tier 3 airports are currently very limited or not available altogether.

The largest players in the FBO and MRO marketplace all compete for tier 1 airport space.

Strategically targeting inefficient family-run operations in prime FBO locations will result in higher margins, repeat customers, and upgraded facilities and services. Our management team - which you can read more about below - has a wealth of experience and excellent reputation in the industry which we will use to execute this plan.

AvStar will deliver tier 1 airport facilities and services to the underserved tier 2 and 3 clientele.

For example:

• Tier 1 airports (e.g. JFK, LAX, ORD) sell at least half a million gallons of fuel per month. Most tier 1 airports will exceed the 1 million gallons per month mark.
• Tier 2 airports typically sell between 150K-250K gallons per month.
• Tier 3 airports are the smallest, selling between 50K-75K gallons of fuel per month.

​The FBO and MRO operations in the tier 1 market are dominated by seven primary operators who cater to elite clientele. AvStar (GateOne) sets itself apart by catering to the tier 2 and 3 markets. These are generally sole proprietorships, “C” and “S” Corporations, or Limited Liability Companies.

We believe that once these next-tier-down airports have a unified, one-stop shop the general aviation industry can go to for all their aviation needs, we can control the market.

How Does This Work in Practice?

AvStar is the parent company. No FBOs and MROs will operate under its name; it is simply the name of the acquisition company.

GateOne is our FBO and MRO brand -- this is the name that airports, pilots and owners will learn to trust and rely upon. GateOne will offer a very broad suite of services, including fueling, hangar rental, tie-down and parking, aircraft rental, aircraft maintenance and others. GateOne's maintenance services will generally be provided by its MRO component. The following is a listing of some, or all, of the MRO services to be provided:

GateOne will capitalize on managements experience and reputation to deliver superior facilities and services competitive with operators in tier 1 markets. We will not only repair and refuel aircraft, we will handle food, hotel, and transportation arrangements. Our high net worth clients demand the best ...... and that is what we will deliver.

If you’ll excuse the poor aviation joke, we have a solid roadmap.

1.  We first targeted 35 FBOs and MROs for acquisition. We conducted preliminary
     acquisition discussions.

2.  We then narrowed the initial targets down from 35 to 12. These 12 FBOs are
     primarily located in the southern tier of states in the United States.

We are confident in the experience and skills of our management team in the FBO and MRO market to acquire and operate the targeted operations once capital becomes available.        

After these initial 12 targets have been acquired, we will continue to expand by:

1.  Looking at locations where we would be the only game in town.

2.  Looking for acquisitions where secondary FBOs will have a very hard time
     getting in.

3.  Approaching people who have successful FBOs with longstanding customers and
     steady profits, and ask if they’re interested in selling.

4.  Building on our pre-existing relationships.

5.  Identifying FBO business owners who are looking to retire.

6.  Sourcing unique locations in growth areas.

7.  Building profitable charter and cargo operations by forming alliances with existing      charter and cargo operators by providing services to domestic and international        unserved, or underserved, destinations.    

We have a team with a unique skill set and over 45 years of experience in the general aviation field, with a high level of FBO, MRO, Charter and Cargo operation expertise.

Thomas Mathew, President and Director
Thomas oversees everything from affairs and properties of the company to the general officers, and ensures that all orders and resolutions are implemented.

His experience in the aviation industry is the backbone of our company. He has acquired many FBOs and MROs in Texas, Arizona, Colorado, and Wyoming through a previous business venture. As President of that company, he was involved in all aspects of the operations, including business development, marketing, and capital funding efforts. After operating the company for nine years, it was sold to Trajent Flight Support for $28 million.

Thomas is also an experienced pilot himself, and a 35 year veteran of the aviation industry. His experience and guidance will be invaluable for our company moving forward in creating shareholder value for our investors.

Henry A. Schulle, Executive Vice President and Director
Henry works hand-in-hand with Thomas carrying out corporate functions. Henry is also the liaison to the Board of Directors and carries out their directives and policies. His seventeen years of experience with public companies is also utilized when working with the CFO in corporate compliance issues.

Stephen Wood, Treasurer
Stephen is an experienced entrepreneur in his own right, serving as president and CEO of his own company, Local Media Group. In addition to his work with AvStar, he is also Treasurer for several privately held companies.

Robert Wilson, Chief Financial Officer
Robert uses his CPA knowledge to maintain all financial records, including financial reports and audits.

He has over 3 decades of experience in the financial world: 5 years in the Audit Department at Price Waterhouse, 20 years as financial operations principal for investment banks and brokers/dealers, and 7 years as CFO of several publicly traded companies.

James H. Short, Director
James serves on the board of directors and is involved in both regular and special meetings.