Cargo operations weigh on Abu Dhabi Aviation

Abu Dhabi Aviation, the largest commercial operator of helicopters in the Middle East, said yesterday profit was down 15 per cent in 2013 as its cargo business struggled.

The group reported Dh223.72 million net profit for the year compared with Dh263.87m for 2012. Revenues reached Dh1639m during 2013, down 8 per cent from 1778m in the year earlier period.

Maximus Air, Abu Dhabi Aviation's all-cargo airline, faced tough competition from the cargo business of Etihad Airways and Emirates Airline it said, adding it planned to turn its operations around.

“We could focus on sub-charter lease for Maximus or buy bigger aircraft,” said Ashraf Fahmy, the chief financial officer of Abu Dhabi Aviation.

Maximus Air, 95 per cent-owned by Abu Dhabi Aviation, made a loss of Dh215m last year, while Royal Jet, 50 per cent owned by the group, made a profit of Dh41m.

The company plans to distribute cash dividends of 10 per cent for the nominal value of the share, and bonus shares of 10 per cent for 2013.

Abu Dhabi Aviation’s fleet consists of 58 helicopters and eight fixed-wing aircraft.

It plans to buy eight new Bell 412 helicopters, as demand on modern helicopters increases. The company said it set up a flight simulator training facility for AW 139 helicopters last year.

Shane O’Hare, Royal Jet’s president and chief executive, said at the Abu Dhabi Air Expo last month that his company made 9 per cent profit margin growth last year and he expected margins to grow by 5 or 6 per cent this year.

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