AIR.L Regulatory News (AIR)

21 May 2007 07:01

Air Partner PLC21 May 2007 Air Partner PLC ("the Group" or "the Company") £5 million lease & development of secure private jet site at Biggin Hill Airport ("Biggin Hill") Air Partner is a leading provider of private aviation services to industry,commerce, governments and private individuals worldwide. Air Partner holds aRoyal Warrant from HM Queen Elizabeth II and has 21 offices, in 12 countriesincluding Europe, US, Middle East and Asia. Air Partner has signed an 80 year lease with Biggin Hill Airport Limited for anew 115,000 square feet site adjoining the Group's existing operations. Thesite will be used to develop a new high security private jet enclave, thenearest such facility to the City of London. The site, which already has development permission, will have two state of theart aircraft management and maintenance hangars built by 2010. The totalcapital expenditure of the project is expected to be £5 million. The first hangar is targeting completion by September 2008 and operationalprofitability in 2010. The second hangar will be completed in 2009 and is alsoexpected to be operationally profitable two years after completion.Operational running costs for both hangars are expected to be immaterial. Air Partner currently leases 26,000 square feet at Biggin Hill Airport and fromhere manages Western Europe's largest fleet of Lear jets. Biggin Hill, which islocated just 14 miles south of the City of London, is London's last remainingnon-slot regulated airport, enabling Air Partner to offer clients greater travelflexibility than existing slot controlled airports. It is also 25 miles closerto the City than rival Farnborough airport in Hampshire. Air Partner provides clients with branded private jet services encompassingaircraft management and maintenance (provided by Air Partner's approved jetservice centre), charter services, JetCard sales, block hour contracts andprivate jet sales. The new hangars will better enable Air Partner to leveragethese private jet services at Biggin Hill Airport and enable the Company to: - accommodate the Group's expanding fleet of managed jets; - increase the growth rate of its management and maintenance service offering; - continue to offer clients greater flexibility than slot controlled airports; - leverage Biggin Hill Airport's unique position for private aviation; - develop new revenue streams at Biggin Hill. David Savile, Chief Executive commented: "With private jet manufacturers' orderbooks at an all-time high, and three year waiting lists the norm, there is alsoan emerging shortage of quality secure hangars to accommodate these new jets.Air Partner's new private jet enclave is being developed to service this demand,conveniently close to the City and alongside a runway that has no slotrestrictions or congestion. This is another significant step in the Group's aimto be the provider of choice for private aviation services." Robert Walters, Business Development Manager of Biggin Hill Airport Limitedcommented "We are absolutely delighted to welcome this new investment andservice by Air Partner. Biggin Hill Airport is one of London's best keptsecrets, and is growing fast. Our business aviation grew considerably last yearand is currently running 30% higher this year. The airport is a great place tobase aircraft, and this new investment by Air Partner is welcomed and thoroughlycompliments the range and facilities already at the airport" 21st May 2007 Notes to Editors:Biggin Hill (15 miles from the City of London, off peak journey time 45 minutes)No restrictions on flight numbers at any time.Private jet movements grew by 30% last year. Farnborough (40 miles from London, off peak journey time 1 hour 20 minutes)Farnborough limited to 28,000 flights a year and only 2,500 flights at weekends.Private jet movements grew 16% in 2006, with 21,365 recorded, filling 76% ofcurrent capacity Luton (37 miles from London, 1 hour 10 minutes off peak journey time)No more capacity for private jets. ENQUIRIES:Air PartnerDavid Savile, Chief Executive T: 01293 844 805 Temple Bar Advisory T: 0207 002 1080Tom Allison T: 0778 999 8020 This information is provided by RNS The company news service from the London Stock Exchange