M&A Trends in BiazAV; should the TSA be privatized?

M&A Deal Flow in 2025 – optimism is high?

Despite a softer 2024, with the election wrap-up and possible tax incentives, M&A attorneys, like our co-host this week, Ramsey Ammar, believe 2025 will see more transactions. Interest in aviation technology & software, MRO, and FBO businesses remains high.

Sustainability Gets Simplified

The new AvfuelZero program promises to redefine sustainable aviation operations by simplifying the net-zero journey. It gives operators unmatched, direct access to innovative solutions like sustainable aviation fuel and carbon offsets. More than that, it demystifies sustainability by helping operators make sense of available sustainable solutions, including what they are and how they work together to help aviators achieve measurable goals.

The FAA Goes Digital

After announcing digital pilot’s licenses, the FAA has published new rules encouraging the electronic filing of aircraft transaction documents. This is great news for aircraft buyers, brokers, and attorneys who used to hand-deliver documents to the FAA in Oklahoma City for aircraft deals and marks several efforts to streamline the agency. AOPA had been lobbying for this change, citing the backlog of registrations had reached a staggering 6 month timeline.

Pratt & Whitney’s Hydrogen-Powered Turbine

Using the byproduct of hydrogen fuel, P&W has been testing a hydrogen engine design (Hydrogen-Steam Injected, Intercooled Turbine Engine or HySIITE) that could increase engine efficiency by 35% over current engine technology. Steam injection is the key. While burning hydrogen produces no carbon footprint, critics have cited the weight, combustibility, and high costs as barriers to adoption in the past.

Sen. Lee Says Let’s Get Rid of TSA, Elon Musk Agrees

In a back and forth on X, Senator Mike Lee called for the privatization of TSA, and require airlines to do their own screening. The TSA was established after 9/11 terror attacks, but recent studies have shown failure rates of 80-95% in recent years.

Textron Share Price Falls After Q4 Earnings

Still dealing with the impacts of worker strikes in 2024, the firm missed revenue expectations and forecasted “2025 profit to range between $6.00 and $6.20 per share, compared with analysts' estimates of $6.40 per share” (Reuters). In addition to private, military, and government aircraft (Cessna, Pipistrel) and helicopters (Bell), the firm also produces ATVs and specialty ground vehicles, which faced softer demand at the end of last year. The firm did mention most parts issues have been resolved and the workforce is almost back to full production.