Gama Aviation Share Discussion Threads

[rivaldo] 17/4/2015 12:01

Thx for the news flow igoe104, the Asian JV seems to have started well and has huge potential.

[igoe104] 17/4/2015 09:40

Gama research reveals huge growth in APAC business aviation sector.




In contrast to this, the number of aircraft delivered globally contracted by 21.7% between these two time periods. The Asia Pacific region share of global deliveries increased from 6.73% for the period 2005 to 2009, to 12.24% for 2010 to 2014.

Gama Aviation expects to see this huge growth in the Asian business aviation market continue, and in January this year it announced it had established a business aviation joint venture with Hutchison Whampoa (China) Limited (“HWCL”).

Initial operations will begin in Q2 2015, with two aircraft based in Hong Kong increasing the Gama Aviation managed global 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 Peoples Republic of China, Hong Kong and the wider Asia region.

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 jointly owned by Gama Aviation and HWCL (50% each). Regional subsidiaries will be established under the management of Gama Hutchison to operate the full range of business aviation and ground services

[impvesta] 15/4/2015 12:07

twirl - no, they are both SETSqx stocks and go into auction every day:

hxxp://www.lseg.com/areas-expertise/our-markets/london-stock-exchange/equities-markets/trading-services/domestic-trading-services/setsqx

"SETSqx combines a periodic electronic auction book with standalone non-electronic quote driven market making. Electronic orders can be named or anonymous and for the indicated securities order book executions will be centrally cleared.
Since 15 September 2014, the uncrossings have been re-timed to 9am, 11am, 2pm and 4:35pm. Also a Closing Price Crossing Session has been introduced to allow a further trading opportunity at the closing auction price."

[twirl] 15/4/2015 11:01

avap and gmaa both in auction few mins ago - merger?

[igoe104] 14/4/2015 18:10

Good rise today, hopefully it will be a start of some good momentum.

[igoe104] 14/4/2015 10:56

Gama Aviation Set To Start China Managed Fleet


by Ian Sheppard

- April 13, 2015, 7:40 AM


Gama Aviation (Booth P706) is preparing to start its Asia Pacific aircraft management joint venture, with the first two customer aircraft to be based in Hong Kong, taking its global managed fleet to 146 aircraft. The development follow’s the Farnborough, UK-based company’s announcement in January that it had reached an agreement with Hutchison Whampoa (China) Limited (HWCL).

Speaking with AIN as he prepared to board a flight to Shanghai on Sunday, Gama CEO Marwan Khalek said the first two customers had been secured for managing “heavy metal” long-range private aircraft, while ABACE would provide an important opportunity for publicizing the new offering to other potential customers. “We also need to know where potential customers want us to be,” he said. “But we do want to be in mainland China.” Khalek said the focus would be on private owners so it would not be necessary for Gama to obtain an air operators certificate (AOC) straight away.

Gama has been particularly proactive in the business aviation market over the past couple of years, working to operate for Wheels Up in the U.S. and soon also Europe as well, merging with Oxford-based Hangar 8 last year–creating a company with a market capitalization of around £130 million ($200 million)–and expanding its network of FBO and maintenance facilities to include Sharjah, UAE, and Glasgow, Scotland.

Khalek said that “everything Gama will do in Southeast Asia will be through our joint venture, Gama Hutchison,” with the two initial managed aircraft being managed through Gama Aviation Hutchison (Hong Kong) Limited. He added, “Our plans are not secret and we’re trying to replicate our it throughout the world.” The Gama strategy, Khalek said, is to establish aircraft management services first, and later secure FBO/maintenance assets. This is what it did in the Middle East, ultimately setting up a facility in Sharjah.

“You don’t need the infrastructure on the ground to start, but the next step will be to look to set up a maintenance facility though we already have a cooperation agreement with FIC in Beijing,” said Khalek. “We are growing all parts of our business as aggressively as we can.” With its regional base in Hong Kong it is moving to bigger offices out at the airport soon, from its initial city-center office.

Gama has many years of experience operating aircraft in the Asia Pacific region and worldwide, but it had been cautious about getting involved too quickly. “I think I’m on record as saying I never saw the China market as being somewhere that the rewards will be instant–sometimes growth will be slower than we expect,” he said with respect to the current slowdown in the market. “The market is maturing here and the understanding is improving.”

Gama Aviation’s market research in the region revealed that China experienced “an incredible 460-percent” increase in deliveries of business aircraft comparing the 2010 to 2014 period with the earlier 2005 to 2009 period. Asia Pacific as a whole experienced 42.3-percent delivery growth between the two periods–714 units versus 501. “In contrast to this,” noted the Gama research, “the number of aircraft delivered globally contracted by 21.7 percent between these two time periods.”

“The business aviation market in the Asia Pacific is enjoying strong growth,” Khalek noted, “and it is being led by China, [which] now has the second-biggest fleet size in the region behind Australia [382 versus 738] but it is predicted to be the third largest market in the world by 2022.”

Other research carried out by Gama shows that it is a “seller’s market” with only 6.4 percent of the Asia Pacific business aviation fleet being up for sale at present, “compared with 8.4 percent of the global fleet.” It said that anything under 10 percent “generally means that demand for buying business aircraft is greater than the percentage of owners who are looking to sell, implying that the sector is set for further growth.”

The company’s research also highlighted that the Asia Pacific fleet is relatively young, at an average 16 years, which compares with 21 in North America and 22 years globally. Hong Kong has the youngest fleet, averaging six years, “closely followed by China, with seven years,” said Gama. New Zealand and Japan have the oldest fleets, with averages of 23 and 22 years, respectively.

[macarre] 10/4/2015 01:24

Lots of patience needed here. Can see share price sliding to 250p. Will stay in the sidelines until then.

[michaelwhight] 01/4/2015 08:46

Out as of yesterday but I will look to get back in when there is some progress on the merge. It's clear this is going to take some time. 400p maybe but not for a while.

[igoe104] 31/3/2015 14:32

Cheers rivaldo.

ps

Make sure you put x in the conservative box next month.


I can see the final result being conservative/ ukip coalition.

[rivaldo] 31/3/2015 10:10

Cantor happy to reiterate their Buy and 400p target today:



The merged business retains all the aspects of the HGR8 business which I liked, particularly the very high contracted/recurring income, and trends for the larger business remain positive.

The new Hutchison Whampoa JV in Asia seems to have started very well, with little initial cost.

I'll hold, and may add more at the right time/price.

[wjccghcc] 31/3/2015 09:13

Results weren't particularly inspiring with gross profit down 18% and EBITDA down 33%. They say they took their eye of the ball in the last 2 months but it doesn't make me want to attach much weight to the current forecasts. IMHO, better to wait to see what the merged entity looks like.

[igoe104] 31/3/2015 09:01

Must admit I`d had preferred to have stayed as hangar 8, but saying that if they hit 25p EPS, these should be motoring north, not many companies capped over 100 million have forward p/e that Low (11)

[gorilla36] 31/3/2015 07:26

Riv - Unlike you, I would not interpret the statement as being overly positive, lets just say the jury is out. Granted the merger will have taken time and effort and there will be a bedding in period, but I find the whole statement a bit opaque. Don't think the market will be that impressed and ultimately that is what matters. Jam tomorrow is all very well, but nothing here to drive the price in the next six months.

[rivaldo] 31/3/2015 07:21

Excellent news re current year trading, as well as the merger process going better than expected:

"The Company has enjoyed a good first quarter trading and overall revenues across the Group are in line with Management expectations. The anticipated organic growth is being realized across all sectors and regions, particularly in the US given their strong economy."

The historics are, let's say, a mixed bag....looks like the merger is a good excuse to kitchen-sink certain items and get any bad stuff out of the way. Understandable I suppose, particularly as the merger process meant that trading in H2'14 suffered somewhat.

However, given the forecasts of almost 25p EPS this calendar year, plus the size and potential of the new group, the current valuation looks pretty cheap imo.

[gorilla36] 31/3/2015 07:11

Hmmmm- don't see very much to get excited about there.

[twirl] 26/3/2015 13:55

I have an account with selftrade who used to have a usefull platform allowing dummy trades to assess supply and demand which was useful for small caps. They have tfr to the equiniti platform that does not allow this to be done.

If anyone could advise an online dealer that has a platform that enables dummy trades I would be grateful.

[michaelwhight] 26/3/2015 09:50

Reduced this morning. Not enjoying the new management style.

[michaelwhight] 25/3/2015 22:47

Deafening silence here not doing us any favours. I'm still in but finger on the trigger now.

[igoe104] 25/3/2015 13:43

We certainly do with some news, to put some life back into this share?

This management team a little bit to quite for my liking, has anyone had any emails answered by the company yet ?

I Haven`t.

[macarre] 24/3/2015 14:32

Banked profit today. Will be back soon. Good luck to all holders.

[macarre] 18/3/2015 15:54

As Bono Vox says: 'she moves in misterious ways'.

[rivaldo] 18/3/2015 15:41

Just shows you - the £24k buyer earlier today at 271p is already in profit.

[igoe104] 16/3/2015 12:59

Come on gents get ringing up or emailing ?

Time to apply some pressure on them.


I`ve already had a good blast at one of the senior manager`s of another company, that`s disappointed me last week.

[gorilla36] 16/3/2015 12:51

Chaps _ I don't disagree with any of your analysis. I guess as Michael says what we really need is some news to know where we are with regard to the merger. The danger is now, that even with good news a jump may "only" get us back to the £3.00 mark. We shall see.

[michaelwhight] 16/3/2015 12:29

Well we need some news out of the company in it's new structure. Overdue IMO. People want to know that post merger everything is still ship shape.