newstodate.aero
Jun 06, 2017 (newstodae): The Swedish/UK cargo carrier West Atlantic has published its Q1/2017 report showing the largest quarterly revenue in the history of the company with an increase by 21 percent, y-o-y.
This is a direct result of the recently awarded five-year contract with Royal Mail in the UK, but the full implementation of this contract will not be seen until later in the year, the report states.
It is not, however, just a plain sailing, for related to this rapid increase in demand for aircraft, the Lessors have been delayed in delivering the additional six Boeing 737-400 aircraft, resulting in the need to subcontract aircraft on a number of the routes served for Royal Mail.
This has led to increased costs, and affected the margins and EBIT during this period.
Additional four aircraft are scheduled to arrive between May and August, and will then replace all subcontracted aircraft except one.
On the wide-body fleet side, Q1 has also not been just business as usual; as part of the scheduled heavy maintenance program on the Boeing 767 fleet, the carrier was forced to subcontract one route to another operator, at an incremental cost.
-We placed one additional Boeing 737-400 in operation in the first quarter and we are awaiting four additional aircraft in the months to come. All our B737, CRJ and B767 aircraft are in service for customer operations. We are presently committed to taking on an additional four B737-400 aircraft, three of these on long term operating lease, the fourth being our own aircraft which is coming back from being leased to Jet time in Denmark, the report says.
This is a direct result of the recently awarded five-year contract with Royal Mail in the UK, but the full implementation of this contract will not be seen until later in the year, the report states.
It is not, however, just a plain sailing, for related to this rapid increase in demand for aircraft, the Lessors have been delayed in delivering the additional six Boeing 737-400 aircraft, resulting in the need to subcontract aircraft on a number of the routes served for Royal Mail.
This has led to increased costs, and affected the margins and EBIT during this period.
Additional four aircraft are scheduled to arrive between May and August, and will then replace all subcontracted aircraft except one.
On the wide-body fleet side, Q1 has also not been just business as usual; as part of the scheduled heavy maintenance program on the Boeing 767 fleet, the carrier was forced to subcontract one route to another operator, at an incremental cost.
-We placed one additional Boeing 737-400 in operation in the first quarter and we are awaiting four additional aircraft in the months to come. All our B737, CRJ and B767 aircraft are in service for customer operations. We are presently committed to taking on an additional four B737-400 aircraft, three of these on long term operating lease, the fourth being our own aircraft which is coming back from being leased to Jet time in Denmark, the report says.