Pre­tax prof­its rise at SMBC

The Irish Times - Business - - BUSINESS NEWS - BARRY O’HAL­LO­RAN

Air­craft lessor SMBC Avi­a­tion Cap­i­tal grew pre­tax prof­its by 3.1 per cent to $16 mil­lion (€142.8 mil­lion) in the six months to the end of Septem­ber, the first half of its fi­nan­cial year.

Dublin-based SMBC buys Boe­ing and Air­bus air­craft and leases them to air­lines in Europe, Asia and the Amer­i­cas. Dur­ing its first half , it de­liv­ered seven new craft to air­lines, six of which were new tech­nol­ogy Air­bus A320s and one wide-body A350, which it leased to Korean car­rier, Asiana.

Leas­ing mar­ket

Chief ex­ec­u­tive Peter Bar­rett noted that the leas­ing mar­ket was con­tin­u­ing to grow and that there were suf­fi­cient op­por­tu­ni­ties for all its main play­ers.

He ac­knowl­edged that there had been a shake up in Europe, where Bri­tish air­line Monarch, Ital­ian flag car­rier Al­i­talia and Ger­many’s Air Ber­lin all be­came in­sol­vent this year.

SMBC had just one air­craft with Monarch, for which the com­pany has found a new client. Mr Bar­rett said de­mand for air travel in Europe had not changed, but com­pe­ti­tion was sort­ing the wheat from the chaff. “Europe is an in­creas­ingly com­pet­i­tive and ef­fi­cient mar­ket,” he said.

“Those air­lines that do not have the right busi­ness model, they are be­ing ex­posed over time.”

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