Last checked at 6 May 2015 08:10
Gama Aviation Plc (AIM: GMAA)("Gama Aviation" or the "Company")
Gama Aviation adds five contract aircraft, submits plans for a new hangar in Aberdeen andcompletes a global procurement deal for aviation fuel.
Gama Aviation, one of the world's largest business aviation service providers, today announces trading continues to be in-line with Management expectations after a strong period of activity in April.
· The aircraft management contracts have seen Gama Aviation's organic growth in 2015 continuein-line with Management expectations. Two aircraft - both Bombardier Global business jets - will be operated out of Hong Kong (as part of the Gama Hutchinson joint venture), a Challenger and a Gulfstream 550 will be UK based and a Gulfstream V will be based in Mumbai, India.
· The signing of the contract for the Gulfstream V marks a significant step for Gama Aviation as it represents the company's first managed aircraft in the Indian sub-continent; a target market for organic growth within the existing business plan.
· Gama Aviation's global fuel deal, (based on previous Group wide consumption figures of 40+ million litres1) will lead to much improved fuel rates at over 400 global locations The announcement comes at a time when global jet A1 fuel prices reached US$76.02/bbl2 - 8.6% higher than a month previously.
· The fuel deal is a tangible demonstration of Gama Aviation's strategy to grow market share using scale to create quantitative competitive advantage in the highly fragmented aircraft management market (80% of fleet operators in Europe manage 2-5 aircraft, with only 9 managing 20 or more3)
· Planning has been submitted for a new facility in Aberdeen to serve the Scottish east coast and Gama Aviation's multi-year contract with NHS Scotland. If planning is approved, and subject to Management approval, the new hangar will open in 2016. The completed hangar will be Gama Aviation's third facility in Scotland, the other two being located at Glasgow International Airport.
Marwan Khalek, CEO of Gama Aviation Plc commented:
"As per our 31st March announcement, current trading, including a strong period of activity in April, remains in-line with the Management's expectations of our full year performance. The new aircraft management contracts and the planned development at Aberdeen, demonstrate the success of our organic growth strategy that runs in parallel to our acquisition interests. Our fuel deal represents the cost efficiencies we bring as a scale operator. With fuel representing a large percentage of an aircraft owners operational cost, the savings we bring translate directly into quantifiable, competitive advantage in the negotiation of new and existing contracts."
1 Internal company data
2 Data correct as of 23rd April 2015, courtesy of IATA/Platts fuel price analysis
3 Gama Aviation analysis of EBAA data, October 2014
Ends
Gama Aviation PlcMarwan Khalek, Chief Executive +44 1252 553043
Citigate Dewe Rogerson +44 207 638 9571Chris Jarvis, Associate Director Phil Anderson, Executive Director
Cantor Fitzgerald Europe +44 207 894 7000(Nominated Adviser & Broker) Mark Percy / Catherine Leftley (Corporate Finance)David Banks (Corporate Broking)