HUNTING IS BELIEVED to be close to making an announcement over the sale of its UK business-aviation operation, which acts as a fixed-base operator (FBO) in the London area.
Speculation over a possible sale was sparked off by comments from chief executive Ken Miller that the group's aviation division needs "further tightening up" as it comes to the end of a major three-year restructuring.
"We have identified the core businesses, and also those we wish to sell," said Miller as the group unveiled its results for the half-year to June.
Although no specific businesses were named, the depressed aviation operation is a clear candidate, and an announcement over its future is expected soon.
Despite signs of recovery in other core areas within the restructured Hunting Aviation division, business aviation continues to suffer from over-capacity and depressed markets. "It was a casualty of the recession. There probably will be a recovery, but there is still too much capacity," says Gordon Williams, Hunting Aviation's chairman.
While Hunting seems likely to dispose of the FBOs at London's Heathrow, Stansted and Luton airports, it could choose to keep the business-aircraft interiors operation at its Biggin Hill, Kent, base.
Elsewhere within Hunting Aviation, the aircraft engineering, contract services, airliner interiors and cargo airline operations appear to be earmarked for expansion.
The engineering division has suffered from low margins in engine- and aircraft-maintenance markets, but could get a major boost from Hunting's selection as a partner for the Lockheed Martin/GEC-Marconi team offering the P-3 Orion 2000 for the UK's replacement maritime-patrol-aircraft contest. Hunting would have design authority for the Orion 2000.
The contract services division has been growing rapidly, largely because of a series of UK Ministry of Defence contracts to take over forces maintenance and training. The aim is to repeat the growth in overseas markets such as the Gulf and Asia Pacific., says Williams.
He adds that the airliner-interiors business is seeing a dramatic change in fortunes after suffering damage from the recession. The Biggin Hill base is expected to turn out 110 interiors in 1996, helped by its prime-contractor role on the Bombardier de Havilland Dash 8 series.
Finally, the Hunting Cargo airline is in the process of building up a jet-powered fleet. Six Boeing 727s will have joined the existing Lockheed L-188C Electras (its BAe Merchantmen having been retired) by the end of 1995, and more are likely to be added in 1996, according to Williams.
Signs of recovery are indicated in the half-year results, with the aviation division raising profits to £3.3 million on sales which grew nearly 10% to £89 million.
Source: Flight International
