GlobeAir profited in 2012 despite downward trend

                        

GlobeAir ended the 2012 financial year with a profit of over €200k (EBITDA) and is showing further signs of growth in spite of a declining European charter market.

Bernhard Fragner, founder and CEO, said: “From the onset, we knew there had to be a more efficient way of running a private jet business successfully. Through our innovative business model we have achieved economies of scale. The shift in the charter market and the resulting downgrading has actually been very beneficial for us. Not only has the VLJ sector in general gained strength, GlobeAir has flourished and I expect that we will continue to grow in the coming three years. I still believe, and our numbers actually show, that our business model is the only efficient way of doing business in this industry, at least in Europe.”

“In a strong market, anyone can look like a winner,” said Roei Ganzarski, president and COO of BoldIQ “but it is in challenging times like these, that the true innovators and market leaders shine and we are proud to be partnered with GlobeAir as they continue their successful trajectory”

“We bet on the right ‘horse’ at the right time,” said Bernhard Fragner. “For our future the shift in the charter market means we will base our sales strategy on expert views, such as that of Richard Koe from WINGX, as well as the expectation that the charter market will continue to change in our favour.”

Fragner added: “The foundation of AirClub with some of our partner operators here in Europe late last year marks yet another step forward in this changing environment. A concept such as that of AirClub supports the new generation in our industry.”

Richard Koe, managing director at WINGX added: ”We have taken a look at the VLJ and a peer group of light jets, in terms of fleet development and flight activity since 2008, and several highlights show up: across this fleet, VLJs have increased their share of activity by almost 10 x in the last five years; even whilst overall European charter activity has subsided since 2008, VLJ aircraft have enjoyed a compound annual growth rate of more than 35% over the same period; there is an obvious trend of charter users migrating from light jets to VLJs, particularly in the last two years.

“Insights show some very interesting results regarding GlobeAir’s competitive share in comparison to its VLJ and light jet competing operators when look at  City Pairs in Western Europe in 2012,” Koe concluded.