Dart Group PLC News

Avation Division Expansion

23rd October 2002

Dart Group PLC, the aviation services and distribution group, announces that it will be expanding its Aviation Division's successful passenger operations to offer low cost passenger services from Leeds Bradford International Airport to European business and leisure destinations.

The Group has named the new low cost service "Jet 2" which will be operated by its wholly-owned subsidiary, Channel Express (Air Services), alongside its established contract passenger and cargo operations. This business will enable the Group to leverage its existing skill base and, in future, will also maximise the utilisation of its Boeing 737-300 "Quick Change" aircraft, which fly passenger services by day and cargo by night. The Group's management has been enhanced with further specialist passenger expertise. The Jet 2 service is seen as a natural extension of the Aviation Division's passenger operations, utilising both aircraft from the existing fleet and further Boeing 737-300 aircraft that will be acquired to support the expansion.

In the year to 31 March 2003, start up costs in the order of £2m will be incurred. In the first full year of operation, Jet 2 is forecast to be earnings neutral and become earnings enhancing thereafter. As an existing operating airline, the Group's Aviation Division already has the majority of the fixed cost structure to support this expansion which, therefore, should be viewed as incremental to the existing core operations.

Commenting, Philip Meeson, Chairman and Chief Executive, said "We are delighted to be working with Leeds Bradford International Airport which has a catchment area of 9.5 million people who are not adequately served by low cost carriers. It is my belief that JET 2 will be a significant contributor in the growth of the Group's profits in the years to come".

Written by Will

Posted in

October 23, 2002 at 11:39

Tagged with aviation services