Private jets spur TBI growth
Informer
By Mike Verdin
TBI, the airports operator, has revealed a surge in use of
private jets as it announced a turnaround, fostered by budget airlines, in
the fortunes of the aviation industry.
The data came as BAA, the country's largest airports operator,
revealed a further month of strong passenger growth.
TBI, which runs airports including London Luton and Belfast
International, said that its sites carried 17.5 million passengers in the
year to the end of March, up 17.5 per cent on a year before.
Traffic on low cost airlines surged by 31 per cent, spurred by
easyJet expansion at Luton and Ryanair opening a base at Stockholm Sakvsta,
which is also in the TBI portfolio.
And expansion had continued in TBI's current financial year,
with passenger growth up 10 per cent and a surge in demand at Luton from
owners of private aircraft.
Stanley Thomas, the TBI chairman, said: "The executive jet
market continues to flourish and in recent months has demonstrated growth
considerably in excess of 20 per cent."
Such expansion will be welcomed by analysts seeking offbeat
evidence of the strength of the UK's economic recovery, with factors such as
champagne sales and the number of taxis also viewed as alternative
indicators.
Mr Thomas added that, bar geopolitical unrest, the overall
aviation market was well placed.
"I am pleased with [the] year's achievements as I believe they
signal the beginning of a turnaround in the fortunes of the aviation
industry," he said.
While pre-tax profits had slumped by £5.0 million to £6.2
million, the fall was "almost entirely" due to one-off charges including a
goodwill writedown of £5.9 million and a termination penalty charge of £2.0
million relating to a refinancing at London Luton.
At BAA airports, which include Heathrow, Edinburgh and Gatwick,
passenger numbers surged to 11.7 million last month, 7.8 per cent higher
than in May 2003.
While the rise reflected in part a recovery from a month last
year dogged by Sars, a 12.4 per cent increase in Heathrow traveller numbers
took the airport's annual total past 65 million for the first time.
North Atlantic travel, on which Heathrow is particularly
dependent, surged by 18 per cent at BAA airports.
However, a drop to 6.8 per cent, from an annual average of 18.8
per cent, in passenger growth at Stansted spooked investors, sending BAA
shares 2.5p lower to 544p in morning trade.
TBI stockstood 1p lower at 63p.
Chris
> M1TE&.#EA`0`!`)$"````,P```/___P```"'Y! $```(`+ `````!``$`0 ("
> $5 $`.P``
> `
> end
>
> begin 666 white.gif
> K1TE&.#EA`0`!`( ``/___P```"'Y! ``````+ `````!``$`0 ("1 $`.P``
> `
> end
The full report can be found at: www.tbiplc.co.uk/reportsAcc/Prelims100604.doc