Pretax profits rise at SMBC
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.
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.”