Aircraft Hangars are one of the newest areas in Holton Capital's extensive investment portfolio. It has many opportunities for becoming a commercial property.
As many may know, aircraft hangars in Rifle, Colorado have recently been acquired by Holton Capital with the goal of converting these hangars into commercial property. Holton Capital strongly believes that this is a largely untapped market, and we believe that this has the potential to become a networked business that can span the country and the world.
Why does Holton Capital see hangars as a market opportunity?
It Is A Necessity
Aircraft hangars are one of the most basic necessities for any aircraft owner and operator. With all kinds of adverse weather conditions throughout the world, hangars are absolutely necessary if owners wish to protect and safely operate their aircraft. On top of this, aircraft exposed to conditions like snow and ice may not be able to depart from their airport if the airport does not have the services available to "deice" the aircraft.
The Frequency Of Traffic
Our reasoning for purchasing in Rifle is because most, if not all private flights inbound for Aspen tend to divert to Rifle if the case of bad weather or high frequency traffic going into to Aspen, which tends to be a very common case.
Its Position In The Supply Chain
Arguably one of the best reasons is the organization of the business. Hangar storage is considered a portion of Fixed Based Operations, better known as FBOs, but while FBOs do offer more services like fuel and space on the aircraft ramp, FBOs have many more expenses and logistics to worry about like fuel contracts and strict FAA regulations, which can create a high barrier to entry. Holton Capital believes that their is a sector for the market that solely focuses on aircraft storage and maintenance.
Although their can be many more factors to consider, Holton Capital believes that these are the key reasons for expanding our storage portfolio into aircraft storage. Rifle Aviation is making headway and plans to become fully operational within the next month. Please reach out to us if you have any questions.