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Market Report a Publication of Saab Aircraft Leasing Issue 27 December 2011 MARKET REPORT A PUBLICATION OF SAAB AIRCRAFT LEASING DARWIN DEVELOPS EUROPEAN NETWORK PlottING A NEW COURSE GULFSTREAM INTERNATIONAL ADDS SAAB 340Bplus AIRCRAFT AND BECOMES SILVER AIRWAYS messaGE FROM CONTENTS Michael Magnusson Golden Air shines as niche Swedish carrier ......................... 3-5 Reflecting on 2011 activity and Darwin develops European network .................................... 6-9 readying for next year’s priorities Flying to the finish line. .................................................... 10-12 Pinnacle positions .................................................................13 As 2011 draws to a close, we can look back over a busy year during which Lakeshore luxury ..................................................................13 we transacted business on many Saab Plotting a new course 340Bplus aircraft. As we have taken Gulfstream International adds Saab 340Bplus aircraft aircraft back from Mesaba, we have found and becomes Silver Airways ........................................... 14-16 new homes for them with both old and new customers. The 30-seat turboprop Saab 340 operators in Thailand expand regional airline service ...........................................................17 continues to be a perfect regional aircraft choice on many regional routes. Saab Destination: Scatsta Airport, Shetland – Scotland. ......18 We are especially pleased that a revitalized Gulfstream International Airlines in Saab 340 Global Operators Conference set for 2012 ...........19 Florida, soon to be renamed “Silver Airways”, has chosen the Saab 340Bplus aircraft to replace a large part of its Beech 1900D fleet, with an initial order for Rex wins #1 regional carrier ranking .....................................19 six aircraft. We will start delivering the Saab 340Bplus aircraft before the end of 2011 to Silver Airways whose focus will remain on Florida and the Bahamas. Loganair to celebrate its 50th anniversary .............................19 (See interview with CEO Darrell Richardson on page 14.) Mark your calendar ...............................................................19 Nok Mini in Thailand has grown to operate three Saab 340Bplus aircraft. Saab operators map... ....................................................................... 20 However, they have experienced a brand new challenge when their main airport in Bangkok flooded! This was certainly a first for us all. Don Mueang Airport was flooded in October forcing Nok Mini to relocate their entire operation to Suvarnabhumi Airport. Even though this caused severe disruption to their services, the airline quickly adapted by booking hotel rooms for their staff, buying a boat and continuing on! In addition, SOL is still suffering from volcanic ash in Argentina, as “Mother Nature” continues to create new challenges for many. The Saab 340 and Saab 2000 are proving so attractive to outside investors, that we have also been busy selling aircraft from the Saab Aircraft Leasing Cover: Swiss regional airline (SAL) portfolio. Thus far, 23 Saab aircraft have been sold to leasing companies Darwin Airline, headquartered at in Sweden and the United States during this year. SAL still manages over 70 Lugano Airport, has expanded its operations with the introduction of aircraft and will continue our activities for several more years. a sixth Saab 2000 and a merger with Geneva-based airline Baboo. For 2012, I know that we will continue to be very active in the Saab 340Bplus Photo by Eryl Crump market. Mesaba will return their final Saab 340Bplus aircraft to us ending a chapter for both companies. With no new 30-seaters in production, these aircraft are attracting steady interest around the globe from current Saab 340 operators, startups and regional airlines looking to expand their services. Saab will also celebrate its 75th anniversary in 2012, and SAL will participate in this celebration as well. Our colleagues at Saab Support and Services are already quite involved preparing for the biennial Saab 340 Operators Conference Market Report is published by that will be held in October 2012. This has become an extremely popular event Saab Aircraft Leasing that brings together Saab 340 operators, suppliers and Saab representatives Editor: Kelly Murphy in a beautiful Florida venue. I urge everyone to mark their calendars and make Emerald Media plans to attend this fun and rewarding event! [email protected] As the year 2011 comes to a close and a new year begins, I wish everyone a Europe: Alison Chambers Emerald Media prosperous business year in 2012, for who knows what surprises it might yield! [email protected] Design and Layout: Aeris Graphic Design [email protected] Printed in USA, December 2011 ©2011 Saab Aircraft Michael Magnusson President and CEO, Saab Aircraft Leasing MARKET REPORT A SAAB 2000 TAKES OFF GOLDEN AIR SHINes AT STOCKHOLM-BROMMA AIRPORT FOR ANOTHER AS NICHE SWEDISH GOLDEN AIR FLIGHT. CARRIER STORY AND PHOTOS BY ERYL CRUMP Anders Källsson, Managing Di- Based at Trollhättan, Sweden, operated by the airline. rector of Swedish regional airline the airline currently operates Golden Air, is very enthusiastic a large fleet of Saab 2000s “The Saab 340 and Saab 2000 about operating Saab aircraft. and Saab 340s from hubs at are perfect for our services. Our Since the airline was founded in Stockholm-Bromma Airport, route network is dominated by 1993, Golden Air has operated 20 Ängelholm-Helsingborg Air- small airports and short runways, Saab 340s and 13 Saab 2000s at port and Helsinki. Five larger, and the economics of the aircraft various times. 66-seat ATR-72-500s are also are very favorable,” Källsson tells MARKET REPORT | December 2011 3 MARKET REPORT “The Saab 340 and Saab 2000 are perfect for our services. Our route network is dominated by small airports and short runways, and the economics of the aircraft are very favorable.” Anders Källsson Golden Air Managing Director SMR, proudly wearing a Saab Basic beginnings to acquire their first Saab 340. The 2000 pin on his jacket lapel. Källsson explains the airline, aircraft was used to launch its first part of the long-established route Trollhattan to Stockholm- The airline operates twice Thunbolaget (Erik Thun AB) Bromma. While it started well, daily from its base to Stockholm’s Group, whose core business is the airline ran into financial dif- downtown airport at Bromma. in ship-owning and real estate, ficulties and declared bankruptcy But the mainstay of the Golden entered airline operations quite by in 1993. Air operation is flying sched- accident. uled services on behalf of other Faced with having to dispose carriers or ad hoc charters if an In 1989, Källsson was approached of the aircraft, The Thun Group aircraft and crew are available. by the former owners of Golden decided instead to revive the Air who were in need of financing company. The company opted to 4 MARKET REPORT | December 2011 MARKET REPORT keep the Trollhattan route alive the local team provided finance operated for the Blue1 operation. A GOLDEN AIR SAAB and absorb the Golden Air name. and marketing. In addition, one of the Saab 340Bs 2000 COMPLETES A is leased to NextJet. SUCCESSFUL FLIGHT, Källsson headed the new Golden The operation, Gotlandsflyg, SPORTING A “virTUAL Air and set about exploring new proved very successful. The Opportunities on the horizon AIRLINE” COLOR opportunities for the operation – concept has since been expanded Källsson emphasizes while the SCHEME, TO RONNEBY, an activity he continues to enjoy providing Golden Air with air- airline has no plans to expand its WHICH IS KNOWN AS doing. While initial operations craft utilization and a number of own route network, it is always THE BLEKINGEFLYG were in Sweden and Norway, localities in Scandinavia with vital open to new opportunities. The OPERATION. Golden Air was pressured to look air links. “The concept has been Saab fleet will remain the work- for different business options ow- successful for us,” says Källsson. horse of the airline’s operation ing to the arrival of new low cost with additional aircraft possibly airline operations. The current virtual airline needed in the future. operation includes flights from Building a virtual airline Stockholm Bromma to Ronneby “We stick to our niche. This is One such opportunity led the on behalf of Blekingeflyg, Sunds- what we know, and what we are company to team up with local vall on behalf of Sundsvallsflyg, good at. It is also rewarding for us investors on Gotland, a popular Visby on behalf of Gotlandsfly, to share our own positive experi- tourist island off the Swedish Ängelholm-Helsingborg on behalf ences flying Saab aircraft with coast to create a virtual airline of Kullaflyg and Örnsköldsvik on others,” Källsson adds. sales organization. Golden Air behalf of Höga Kusten Flyg. All supplied crew and aircraft, while flights to and from Helsinki are MARKET REPORT | December 2011 5 MARKET REPORT DarWIN DEVELOPS EUROPEAN NETWORK STORY AND PHOTOS BY ERYL CRUMP Swiss regional airline Darwin (US$14.85 million) in 2005 carried has increased by 250% Airline, headquartered at Lugano to CHF36 million (US$45.32 over the past five years. This Airport, has expanded their million) at the end of 2010. growth will continue with annual operations with the introduction enplanements expected to exceed Niche expansion continues of a sixth Saab 2000 and the 500,000 passengers by 2013, a merger with Geneva-based Chief Operating Officer Mau- further increase of 88% com- airline Fly
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