JV with Hutchison Whampoa & Directorate Change

RNS Number : 6965D

Gama Aviation PLC

02 February 2015

 

Gama Aviation Plc (AIM: GMAA)

("Gama Aviation" or the "Company")

Joint venture with Hutchison Whampoa (China) Limited

& Directorate Change

Gama Aviation Plc, one of the world's leading business aviation services providers, today announces that it has established a business aviation joint venture with Hutchison Whampoa (China) Limited ("HWCL").

•              Initial operations to begin in Q2 2015 with two additional aircraft based in Hong Kong increasing the Gama Aviation managed fleet to 146 aircraft;

•              Leveraging off Gama Aviation's existing infrastructure in the region, the joint venture is focused on providing management, charter, maintenance and repair and fixed base operations in the PRC, Hong Kong  and the wider Asia region;

•              Joint venture provides strong platform for growth in a fast expanding market.  China is predicted to be the third largest business jet market by 2022.

China is widely regarded as one of the fastest growing markets for business jet services yet today there are only forty-five operators operating within Greater China. The new company, Gama Aviation Hutchison Holdings Limited ("Gama Hutchison"), which is incorporated in Hong Kong, will be indirectly owned as to 50% by each of Gama Aviation and HWCL. Regional subsidiaries will be established under the management of Gama Hutchison to operate the full range of business aviation and ground services.   

The joint venture will initially offer aircraft contract management and charter services from Q2 2015 in the PRC, Hong Kong and the wider Asia region. The full service offering to include fixed base operations, maintenance and repair will be scaled up over time. On commencing operations, the new trading subsidiary, Gama Aviation Hutchison (Hong Kong) Limited, will manage two aircraft in Hong Kong.

Marwan Khalek CEO of Gama Aviation Plc commented:

"This venture allows us to significantly build on our existing investment and infrastructure in the region and provides us with an excellent platform for revenue growth. We see Asia as a large business aviation market and one with huge potential for us.  We now have the opportunity to not only serve the PRC, Hong Kong and the wider Asian market, but also link up to our strong regional businesses in Africa, the Middle East and Europe, all of which are major asset destinations for Chinese businesses and individuals. 

This joint venture evidences not only our commitment to the Asian market, but also our appeal to likeminded multinational conglomerates seeking to enter the private aviation services sector with scale operators." 

The Company is also pleased to announce the appointment of Kevin Godley as Chief Financial Officer with immediate effect. Mr. Godley, a Chartered Accountant, has been with the Gama Group companies ("Gama Group") since January 2013 and, in his role as Group Finance Controller, was a key member of the senior management team that worked towards the merger of Hangar8 Plc and the Gama Group.

Prior to the Gama Group, Mr. Godley held a senior management position at TMO Renewables Ltd, a pioneering biofuels business, and before that trained and qualified with Moore Stephens LLP.

Following the recent merger of Hangar8 Plc and the Gama Group, the Board has completed a detailed review of management roles within Gama Aviation. As a result of this review, Kevin Callan will now become Chief Commercial Officer, a newly created senior management position.

Marwan Khalek commented "I am delighted to welcome Kevin Godley to our Board as Chief Financial Officer. Kevin has demonstrated in a relatively short period of time considerable skill in his role as Group Financial Controller and in helping this important merger to take place. At the same time I am pleased to announce that Kevin Callan will undertake this newly created role, reporting directly to me, which will be focussed on improving efficiencies and maximising margins within the group. Kevin's extensive aviation knowledge and commercial acumen mean that he is ideally positioned to take on this challenging but invaluable role. The Board recognises and wishes to thank Kevin for his valuable contribution during his two years in Office as Finance Director. Both Kevin Godley and Kevin Callan will be working closely together and I wish them every success in their new roles".

Kevin Michael Godley, aged 35, is or has been a director of the following entities within the last 5 years:

Current Directorships	Directorships within the last five years
Gama Aviation (UK) Limited	Nil
GA 259034 Limited
Avialogistics Limited
GA FM54 Limited
Gama Aviation (Asset2) Limited
Gama Aviation Group Limited
Gama Engineering Limited
Gama Group Limited
Gama Leasing Limited
Gama Support Services Limited
Ronaldson Airmotive Limited
Airops Software Limited
Gama Aviation (Engineering) Limited
Gama Aviation (Training) Limited
Gama Support Services Inc.
Gama Group Inc.
Gama Aviation (Management) Inc.
Gama Group (Asia) Ltd (Hong Kong Incorporated)
Gama Aviation Limited (Hong Kong Incorporated)
Gama Support Services Limited (Hong Kong Incorporated)

Save as disclosed above, there are no further disclosures required to be made in respect of the appointment under Schedule Two, paragraph (g) (i) - (viii) of the AIM Rules for Companies.

Ends

Gama Aviation Plc Marwan Khalek, Chief Executive Officer		[phone]
Citigate Dewe Rogerson		+ 44 (0) 20 7638 9571
Chris Jarvis, Associate Director
Phil Anderson, Executive Director
Cantor Fitzgerald Europe (Nominated Adviser & Broker)		[phone]
Mark Percy / Catherine Leftley (Corporate Finance)
David Banks (Corporate Broking)

 

END

 

 

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