Expansion of aeromedical business

RNS Number : 9185Q

Hangar 8 Plc

21 October 2013

 



HANGAR 8 PLC ('HANGAR8' OR 'THE COMPANY')

 EXPANSION OF FAST GROWING AFRICAN AEROMEDICAL EVACUTION BUSINESS

·           Hangar8 announces plan to add new medical aircraft to its African fleet.  It will have the longest range of any medically dedicated aircraft on the continent

·           Growth in demand for aeromedical services in Africa is being fuelled by economic growth, increased foreign direct investment, a rise in tourism and a growing expat community

Hangar8, the UK-listed global aviation management and charter company, is pleased to announce plans to add a new Bombardier Challenger aircraft to its aero medical business in Africa, to meet what the Board believes will be a substantial increase in demand for this type of service.  The Company believes that the Bombardier Challenger will have the longest range of medically dedicated aircraft in Africa - an important strength when many clients have to be flown to hospitals in South Africa, Europe, the Middle East and elsewhere.

Hangar8 Aero-Medical already has a strong foothold in this market because it has one of the youngest and most advanced aeromedical fleets in the continent, with one of the longest ranges.  Its existing three aircraft also have some of the most advanced medical equipment and personnel in the continent which will be enhanced with the addition of this fourth aircraft to the fleet.  In the six months to 14^th October 2013, Hangar8 Aero-Medical's business in Africa has seen revenues increase by 300% against the corresponding period in 2012.

STRONG GROWTH IN AFRICAN AEROMEDICAL EVACUATION MARKET

Hangar8 predicts a substantial increase in demand for aeromedical evacuation services in Africa. It believes that this is going to be fuelled by impressive economic growth, strong foreign direct investment, an increase in the number of expats living and working there and a growing tourism industry.

The Company estimates that there are well over 15,000 aeromedical evacuations from Africa a year, which it believes collectively cost more than £300 million⁽¹⁾. Furthermore, it believes that Africa could account for as much as 40% of the world's immediate aeromedical evacuations.

However, Hangar8 Aero-Medical estimates that there are only some 24 dedicated air ambulance aircraft based in the continent - around 2.8% of the global fleet, of which only four of those providers of aeromedical services cover the whole of Africa.

John Cole, Director of Operations in Africa for Hangar8, said: "We believe that the aeromedical evacuation market in Africa is set for strong growth and we are well positioned to use our existing infrastructure to take full advantage of this.  We have one of the youngest and most advanced aeromedical fleets in the continent, with one of the longest ranges.  Our existing structure and customer base ensure we are already compliant with the highest Global Aviation standards as well as having local compliance. This is particularly important when many clients have to be flown to hospitals in South Africa, Europe, the Middle East and elsewhere as we are able to get permits locally.

"Our aircraft have access to some of the best medical equipment and people in Africa, and are effectively aerial ICU platforms, not just ambulance and they provide better medical care than most local facilities. We believe that our proposition is hard to beat."

Hangar8 Aero-Medical has a strong and established network of air operator's certificates (AOCs) and licenses across Africa. It already has significant infrastructure operating from bases in Johannesburg, South Africa, Abuja and Lagos, Nigeria, and Pointe Noire, Republic of the Congo, supporting our oil gas and mineral contracts. This enables it to provide one of the most complete aeromedical services on the continent with minimal setup costs and half the response time of other operators. Swift aeromedical evacuation decreases time in theatre and ICU and the risk of post-operative complications, reducing long-term costs and ensuring the safety of employees and individuals - both national and expatriate - across the continent.

Enquiries

Hangar8 plc                                                   [phone]

Dustin Dryden, Chief Executive Officer

Kevin Callan, Chief Financial Officer

Cantor Fitzgerald Europe                           [phone]

Mark Percy / Catherine Leftley (Corporate Finance)

David Banks / Paul Jewell (Corporate Broking)

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 ⁽¹⁾Estimate calculated using Hangar8 and Allianz Global Assistance data, 2013

About Hangar8

Established in 2002, Hangar8 is one of Europe's leading operators of private jets. With worldwide capabilities, Hangar8 operates some of the newest, safest and most desirable aircraft available for those who appreciate and understand the value of provenance. With aircraft based worldwide and fleet bases at Oxford, Luton, Biggin Hill, Edinburgh, Guernsey, Jersey, Nice, Almaty, Kiev, Dubai, Krasnodar, Mumbai, Abuja, Lagos and Moscow airports, Hangar8 is not only ideally situated but has at its disposal some of the finest terminal facilities.

Hangar8's ambition is to be the world's leading provider of private aviation services. The Company plans to achieve this through organic growth and through consolidating the fragmented sector in which it operates.

Hangar8 Group, which includes the VVIP boutique operator JetClub based in Farnborough, operates a fleet of 50+ aircraft across key manufacturer types. Having started out as a mid-size and super mid-size jet operator, Hangar8's has moved towards a focus on the long haul market. The speciality is now Gulfstream and Bombardier products with a fleet of more than 20 Bombardier Challenger and Global type aircraft - a modern fleet maintained to the highest standards.

Hangar8's clients come from a wide variety of backgrounds including music, sport and corporate - all of whom expect and receive the same level of exemplary service.

 

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