Swedish aircraft manufacturer Saab is making significant changes to the structure of its commercial aerospace activities as it prepares to close its turboprop production lines in late 1999.
Saab Aircraft Customer Support, Saab Aircraft Finance Group and Saab Collaborative Programs, which were previously subsidiaries of Saab AB group, have become business units within a single Commercial Aircraft business.
Gert Schyborger, previously president of Saab Aircraft, will lead the Commercial Aircraft unit.
At the same time Saab Aircraft Finance has been renamed Saab Aircraft Leasing (SAL) to reflect its core activity. It has responsibility for the marketing and placing of 310 Saab-built twin turboprops including 280 Saab 340s and 30 Saab 2000s.
By the time the Linköping lines close next year the unit will have 320 aircraft on its books, says Jeff Saunders, SAL vice-president marketing and communications.
SAL will have only the two Swedish turboprops in its fleet which means it is not trying to offer competing types to the market. Saunders says SAL has no aircraft not in operation, commenting: "Because of the product, we never have aircraft on the ground. The programme shows Saab's commitment to the market. We have to make shifts as the market shifts," says Saunders, adding: "It gives a better footing for the future and new projects."
The renaming of the lease business is indicative of its activities, he adds. It will benefit from the Saab network of users and customer support operation as well as having 13 years' experience with the 34-seat 340 and latterly the 50-seat 2000. "No-one knows the products like we do - or has the network," he says.
SAL's portfolio is worth around $1.4 billion and it has a $200 million equity reserve to draw on to finance its operations. This 'equity base' was part of the parent organisation's capital injection into its commercial aviation businesses shortly after last December's closure announcement.
For balance sheet purposes, Saab views its aircraft as having a 25-year life. Not only is this the nominal operational life of the aircraft but it also covers the period of any likely financial recourse on its fleet.
He admits that there is always a concern that an aircraft model's residual value will fall once production ceases and says that that is why Saab has moved quickly to address the situation.
Saab is mounting a major advertising and marketing campaign to increase the aircraft's market presence. Part of the initiative includes cross-branding campaigns with Saab Automobile and US operators. The first such campaign starts in October at Boston Logan airport in conjunction with 340-operator Business Express.
Source: Flight Daily News
