Fits Aviation to upgrade fleet amidst flat revenues
View(s):By Sunimalee
The former Expo Air-now-Fits Aviation is looking at selling its current fleet and leasing or buying new planes in a market where revenue is likely to be flat this year, the company said.
Expo Air changed name to Fits Aviation following a management decision to keep it apart from the rest of the Expo Lanka Group and remove any confusion among the general public.
In an interview with the Business Times, Fits Aviation Deputy CEO Asad Thawfeek explained that since the group went public they did not include its aviation business as part of the new move.
Expo Air opted to stay out as the shareholders and directors believed in a different plan.
However, once the organization went public, the management realized that the aviation business was getting more visibility and to avoid the confusion they decided to identify the former Expo Air operation as Fits Aviation. Commenting on the company’s revenue, he noted that they expect to be flat on revenues this year “because market conditions are not that great.”
The company’s current cargo business comprises around 90 per cent and there is a soft market demand for exclusive freighters using belly space on passenger aircraft out of Colombo.
Mr. Thawfeek said Fits Aviation would look at upgrading its fleet through lease or purchase options and replacing the cargo aircraft likely to take place in 2013/2014.
Currently, the company has four cargo aircraft, one Douglas DC8, Elusion 18, two Fokker 27, and a Cessna to accommodate passenger traffic.
Fits Aviation has plans to replace its cargo fleet with a Boeing 737 with the same capacity and were currently in discussion with suppliers in this regard, Mr. Thawfeek said.
He noted that the carrier would cost between US$7-10 million and they were looking at purchasing at least two aircraft adding that since “two might be good enough to do the work of four.”
As for the existing fleet, he explained they would sell the now 20 -30 year old aircraft bought in the 1990s and early 2000.
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