This article is based on an official press release from Atlantic Street Capital and summarizes additional industry reporting regarding regulatory developments.

Private Equity Firm Exits Aviation Services Investment Amidst Industry Consolidation

On February 5, 2026, Atlantic Street Capital (ASC), a private equity firm specializing in lower middle-market investments, announced the sale of its portfolio company, GAT Airline Ground Support, Inc. The buyer is PrimeFlight Aviation Services, a global provider of aircraft and passenger services backed by The Sterling Group and Capitol Meridian Partners. While financial terms of the transaction were not disclosed, the deal marks a significant exit for ASC, which has held GAT since 2017.

The acquisition represents a major consolidation event within the North American aviation ground services sector. By acquiring GAT, PrimeFlight significantly expands its operational footprint, integrating a network that includes ground handling, cargo handling, and catering services. However, the transaction has immediately drawn scrutiny from labor organizations concerned about market dominance and workforce impacts.

Transaction Details and Strategic Context

According to the official press release from Atlantic Street Capital, the firm acquired GAT in 2017 from the founding family. Over the course of its nine-year ownership, ASC transitioned the company from a family-owned business into a professionalized industry leader. This period included the strategic acquisition of Sky Café, which allowed GAT to expand its catering services into the Canadian market.

Peter Shabecoff, Managing Partner at Atlantic Street Capital, highlighted the firm’s operationally intensive strategy in transforming GAT. The sale to PrimeFlight is positioned as the next phase of growth for the ground support provider. Piper Sandler & Co. served as the financial advisor to GAT, while Kirkland & Ellis LLP provided legal counsel.

Scale of the Combined Entity

Data regarding the operational scale of both companies underscores the magnitude of this mergers. According to industry reports and company profiles:

• GAT Airline Ground Support: Operates at nearly 70 airports across North America with approximately 6,000 employees.
• PrimeFlight Aviation Services: Operates at over 250 airports globally, offering services ranging from fueling and deicing to passenger support.

The integration of GAT’s 6,000-strong workforce and its specific expertise in ground and cargo handling is expected to complement PrimeFlight’s existing service portfolio, creating a “one-stop-shop” for airline vendors.

Labor Opposition and Regulatory Challenges

While the companies tout the strategic benefits of the merger, the deal faces immediate headwinds from organized labor. According to a statement released by UNITE HERE Local 11 on February 5, 2026, the union has formally requested that federal regulators intervene.

The union sent a letter to the Federal Trade Commission (FTC) and the Department of Justice (DOJ) urging them to block the acquisition on antitrust grounds. The labor group argues that the merger would reduce competition, potentially leading to higher prices for airlines and consumers while suppressing worker wages.

“The union highlights that PrimeFlight and GAT have overlapping operations at 27 airports, including major hubs like Atlanta (ATL), San Francisco (SFO), and Phoenix (PHX).”

, Summary of UNITE HERE Local 11 Complaint

The union contends that the combined entity would hold a dominant market position in 44 states, raising concerns about the reduction of competitive bidding options for air carriers.

AirPro News Analysis

The Push for Modernization and Efficiency

We observe that this transaction aligns with a broader trend of consolidation in the aviation services market, driven by the need for economies of scale. As airports and airlines push for greener operations, ground handling companies face increasing capital requirements to transition toward Electric Aviation Ground Support Equipment (eGSE). Larger entities like the combined PrimeFlight-GAT are generally better positioned to absorb the significant capital costs associated with electrifying tugs, loaders, and other ramp equipment.

However, the regulatory environment in 2026 remains aggressive regarding mergers that may reduce labor market competition. The specific overlap at major hubs identified by UNITE HERE Local 11 could trigger a more prolonged review process than a standard private equity exit would typically warrant.

Frequently Asked Questions

Who is the seller in this transaction?
The seller is Atlantic Street Capital (ASC), a private equity firm that has owned GAT Airline Ground Support since 2017.

What companies are backing the buyer, PrimeFlight?
PrimeFlight Aviation Services is backed by private equity firms The Sterling Group and Capitol Meridian Partners, who acquired the company in 2023.

Why is the union opposing the deal?
UNITE HERE Local 11 argues that the merger reduces competition, which could harm worker wages and increase costs for airlines. They cite overlapping operations at 27 airports as a key antitrust concern.

Sources

• Atlantic Street Capital Press Release
• UNITE HERE Local 11 Statement (via Business Wire)

This article is based on an official press release from Tampa International Airport.

Tampa International Airport Approves Final Design for $1.5 Billion Airside D Terminal

The Hillsborough County Aviation Authority Board of Directors has unanimously approved the final design for Airside D, marking a significant milestone in the expansion of Tampa International Airport (TPA). In a meeting held on Thursday, February 5, 2026, the Board greenlit the “100 percent design stage” for the facility, which represents the first new airside terminal constructed at the airport in nearly two decades.

According to official airport documentation, the project carries an estimated total cost of $1.528 billion. The new terminal is designed to accommodate the region’s rapid growth, adding 16 gates capable of serving both domestic and international wide-body aircraft. Airport officials state that this expansion is critical to increasing TPA’s capacity to 35 million annual passengers by 2037.

With the design phase now complete, the project is moving swiftly toward physical realization. Vertical construction is scheduled to begin later in 2026, with a targeted public opening in 2029.

The “Ascend” Design Concept

The approved design, titled “Ascend,” is intended to reflect the character of the Tampa Bay region through an emphasis on natural light, panoramic views, and operational efficiency. The facility will span approximately 600,000 square feet across two levels plus a mezzanine.

Passenger Experience and Amenities

The interior architecture focuses on reducing passenger stress through open spaces and soaring ceilings. A central concession area will offer 360-degree views of the airfield, a feature designed to enhance the connection between the traveler and the aviation environment. The mezzanine level is set to house two airline lounges, including a new Delta Sky Club, providing premium amenities for travelers.

In a statement regarding the vision for the new terminal, Tampa International Airport CEO Michael Stephens emphasized the project’s broader significance:

“Airside D is more than a new terminal; it is a bold vision for the future of travel in Tampa Bay. Thanks to the dedication and collaboration of our TPA team and partners, we’re setting a new standard for innovation, service, and hospitality in our region.”

Additional passenger amenities outlined in the approved plans include:

• A dedicated children’s play area.
• A quiet room designed for wellness and relaxation.
• Outdoor terraces incorporating greenery to bring the “outside in.”
• A new automated people mover system connecting Airside D to the Main Terminal.

Construction, Costs, and Sustainability

Alongside the design approval, the Board authorized a $902 million supplemental contract for the construction phase. The project team is led by Design-Builder Hensel Phelps, with architecture and engineering services provided by HNTB Corporation and Gensler.

Environmental Responsibility

Sustainability remains a core component of the Airside D project. The terminal is pursuing Leadership in Energy and Environmental Design (LEED) certification, targeting a Silver or Gold rating. The design incorporates smart building technologies aimed at achieving a 10 percent reduction in Energy Use Intensity (EUI) compared to the airport’s 2018 baseline.

Notably, the project embraces circular economy principles regarding the site’s history. The original Airside D was demolished in 2007. According to project details, 100 percent of the concrete from that demolition, approximately 70,000 tons, is being crushed and recycled on-site to form the foundation of the new terminal.

Economic Impact

The airport views this expansion as a vital economic engine for the region. TPA currently generates an estimated $14 billion in annual economic activity. To ensure local benefits from the $1.5 billion investment, the project includes specific goals for Disadvantaged Business Enterprises (DBE), set at 16 percent for design and 13 percent for construction.

AirPro News Analysis

While the headline is the massive Airside D expansion, we believe the Board’s simultaneous approval of the Main Terminal’s Ticketing Level renovation is equally critical. Adding 16 gates and millions of passengers would likely overwhelm existing landside infrastructure without this concurrent upgrade.

The approval of 28 new counter locations suggests that TPA is taking a holistic approach to growth, ensuring that the bottleneck does not simply shift from the runway to the check-in desk. By synchronizing the landside modernization with the airside expansion, TPA aims to preserve the high customer satisfaction scores that have defined its reputation, even as passenger volumes scale toward the 35 million mark.

Frequently Asked Questions

When will the new Airside D open?
Construction is set to go vertical in 2026, with a grand opening scheduled for 2029.

How much will the project cost?
The total project cost is estimated at $1.528 billion. The Board recently approved a $902 million supplemental contract for construction.

What happened to the old Airside D?
The original Airside D was closed and demolished in 2007. Its concrete foundation is being recycled to build the new terminal.

Which airlines will operate out of Airside D?
While specific airline assignments can change, the terminal is designed for both domestic and international flights. The inclusion of a new Delta Sky Club suggests a significant presence by Delta Air Lines.

Sources

• Tampa International Airport

This article summarizes reporting by Reuters.

United Airlines Moves to Acquire Spirit’s Remaining Chicago O’Hare Gates for $30.2 Million

United Airlines has reached an agreement to acquire two preferential-use gates at Chicago O’Hare International Airport (ORD) from Spirit Airlines, marking another significant shift in the competitive landscape of the major midwestern hub. According to reporting by Reuters, the deal is valued at approximately $30.2 million and was disclosed in a court filing on February 4, 2026.

The transaction comes as Spirit Airlines continues to navigate its Chapter 11 bankruptcy restructuring, a process that began in August 2025. By divesting these assets, the ultra-low-cost carrier aims to generate liquidity while streamlining its operational footprint. For United Airlines, the acquisition represents a strategic reinforcement of its position at one of its most critical fortress hubs.

While the agreement has been filed with the U.S. Bankruptcy Court for the Southern District of New York, it remains subject to judicial approval. A hearing to finalize the transaction is currently scheduled for February 24, 2026.

Transaction Details and Asset Transfer

The motion filed by Spirit Airlines outlines the transfer of gates G12 and G14, both located in Terminal 3 at O’Hare. These are “preferential-use” gates, a designation that provides the leaseholder with significant control over scheduling and operations compared to common-use facilities. As noted in the court filings summarized by Reuters, United Airlines emerged as the successful bidder for these specific assets.

The purchase price of roughly $30.2 million aligns closely with recent market valuations for similar infrastructure at O’Hare. In December 2025, Spirit sold two other gates (G8 and G10) to American Airlines for a reported $30 million. This subsequent sale to United effectively concludes the liquidation of Spirit’s proprietary gate holdings at the airport.

“Spirit plans to continue flying a reduced schedule using ‘common-use’ gates…”

, Summary of court filings regarding Spirit’s operational plans

Despite the sale of its proprietary gates, Spirit Airlines has indicated it will not cease operations at Chicago O’Hare. Instead, the carrier intends to transition to common-use gates managed by the airport authority, allowing it to maintain a presence in the Chicago market albeit with a reduced schedule.

Strategic Implications for United Airlines

This acquisition occurs against the backdrop of an intense “turf war” between United Airlines and American Airlines, both of which consider O’Hare a primary hub. Industry observers view United’s move as a defensive measure to prevent its rival from further expanding its footprint in Terminal 3.

United CEO Scott Kirby has previously emphasized the airline’s commitment to defending its market share in Chicago. While Kirby had earlier signaled a lack of interest in piecemeal asset acquisitions, the competitive pressure from American Airlines’ purchase of Spirit’s first set of gates likely necessitated a strategic reversal. Securing gates G12 and G14 ensures that United retains the infrastructure necessary to support its growth targets.

According to industry data, United is planning its largest-ever summer schedule at O’Hare for 2026, targeting approximately 750 daily departures. The addition of two preferential gates provides the physical capacity required to execute this high-frequency schedule efficiently.

AirPro News Analysis

The Value of Scarcity: In the context of “fortress hubs” like Chicago O’Hare, the value of a gate often exceeds its immediate book value. For United, paying a premium of $30.2 million is less about the physical jet bridge and more about blocking American Airlines from gaining two additional slots in a constrained environment. If American had acquired all four of Spirit’s gates, the balance of power in Terminal 3 could have shifted perceptibly.

Spirit’s Liquidity Focus: For Spirit, this sale is a textbook Chapter 11 maneuver. By converting fixed assets into cash ($60.2 million total from both O’Hare sales), the airline improves its balance sheet while shifting to a variable-cost model using common-use gates. This allows Spirit to keep the “dot on the map” for its route network without the heavy overhead of exclusive gate leases it can no longer fully utilize.

Frequently Asked Questions

Is Spirit Airlines leaving Chicago O’Hare?
No. While Spirit is selling its exclusive gates, it plans to continue serving O’Hare using common-use gates shared with other airlines.

Why did United Airlines buy these gates?
United acquired the gates to support its expanded 2026 summer schedule and to prevent its primary competitor, American Airlines, from acquiring further capacity at the airport.

When will the deal be finalized?
The transaction is pending court approval. A bankruptcy court hearing is scheduled for February 24, 2026, to approve the sale.

How much did United pay for the gates?
The deal is valued at approximately $30.2 million.

Sources: Reuters, U.S. Bankruptcy Court Filings (Southern District of New York)