FLS AEROSPACE HAs taken the first step towards possible acquisition of a US maintenance operation, with the setting up of an office in Fort Worth,Texas.
Chairman Steffen Harpoth says that one of the objectives of the new office is to "...see if we can establish the foundation to acquire a maintenance operation. We are in the analytical phase at present, but we would love to have an activity in the USA".
The Danish owned company is Europe's largest independent maintenance concern, with hangars at London/Stansted, Manchester and London/ Gatwick. Although the latter is mothballed, Harpoth sees a possible re-opening in the winter of 1996.
FLS has been going through a major restructuring after almost calamitous results in 1993, when losses rose to DKr 358 million. Figures just released show that, after tax losses, the 1994 defficit still amounted to DKr 277 million, but DKr170 million of this, was caused by redundancy payments and the costs of winding up or selling unwanted businesses. Harpoth says that the fourth quarter actually saw FLS break even before interest payments.
The company is on target towards achieving its aim of having about two-thirds of business under long-term contract, adding Ryanair and Air 2000 in 1994 to existing customers. Together with an as-yet-unannounced customer, the long-term contract business has risen in the last 12 months to nearly 40% from 20%. One setback was the withdrawal of Boeing 727 work by United Airlines, following a commitment to US unions that it would not out-source such work.
Despite expressing optimism for 1995, the company is concerned over the affect on business of large amounts of aid, being pumped into rival Irish maintenance operations, at Shannon Aerospace and Team Aer Lingus by the Irish Government.
Source: Flight International
