2016 Abu Dhabi Aviation revenues slip, but net profit inches up
The Abu Dhabi Aviation Group (ADA) has reported a 1% upturn in net profit for 2016 compared to 2015 despite a 17% year-on-year fall in total revenue.
The Group, which operates the Middle East’s largest helicopter fleet, owns 50% of luxury VIP air services provider Royal Jet and 95% of Maximus Cargo for the which the Abu Dhabi government is the main sub-charter flight customer, recorded a net profit of AED280,390,000 last year compared to AED277,347,000 in 2015.
Revenues at the Abu Dhabi Aviation parent company dropped 11% on 2015 to AED791.73 million in what the Board has reported was a year when the company, “faced significant challenges as a result of the global economic slowdown and falling oil prices.” In the Board statement, Chairman Nader Al Hammadi said during 2016 most ADA clients negotiated down their contracts and, or, reduced the scope of work. This was compounded by difficulties in placing aircraft from expired contracts in immediate new opportunities. ADA net profits fell to AED126.48 million year-on-year from AED150.51 million. Nevertheless, Al Hammadi says ADA is “well positioned to quickly ride the awaited market upturn through various letters of intent for new aircraft types and fleet replacement.”
The efficient running of Maximus Air LLC, its low overheads and the linking of main costs directly to revenue, is credited for a profitable 2016 for the company. Maximus’ net profit was AED110.34 million compared to AED106.36 million in 2015 despite a 37% year-on-year slippage in revenues. The Board has attributed the revenue fall-off to the reallocation of transport charter contracts to Royal Jet.
Meanwhile, Royal Jet turned in a stellar year with an 8% uptick in revenues to AED497.42 million and a 113% uplift in net profits to AED43.58 million. Al Hammadi attributed the performance to the “winning of military shuttle services and increased transactions with the President Flight and VIP charters for the company’s new aircraft.” Royal Jet is currently undergoing a major fleet restructure. It recently took delivery of two fully-customised VVIP Boeing Business Jets and has four older aircraft up for sale.