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Saab Aircraft Leasing MARKET REPORTIssue 25 September 2010 A PUBLICATION OF SAAB AIRCRAFT LEASING CENTRAL CONNECT GROUP PROMOTES SAAB 340 FLYING IN THE CZECH REPUBLIC SWEDISH REGIONAL NEXTJET EXPANDS ITS SAAB 340 FLEET POLET AIRLINES JOINS THE SAAB 340 FAMILY SMR_Sept2010_cc.indd 1 8/31/10 10:37 AM MESSAGE FROM CONTENTS Michael Magnusson OLT extends leases on two Saab 2000s .................................3 Steel heart of the Republic Central Connect Group fl ies Saab 340s These days there is so much discussion, throughout the Czech Republic ........................................ 4-6 at least in the US, about the economy and if it is really recovering, or are we JOB AIR builds its maintenance presence...............................6 just seeing some short-term positive effects driven by government spending. Wish upon a star I don’t think that there should be any NextJet of Sweden uses an entrepreneurial spirit debate as to whether the airline business as its guiding star to expand its Saab 340 operation ........ 7-9 is recovering. A quick look at the traffi c numbers, as well as fi nancial results from Jesus Mary Joseph Flight Services takes to the sky ..............10 last quarter, will clearly show that this Western Air expands its Bahamas network appears to be the case. with more Saab 340s ...........................................................11 We at Saab Aircraft Leasing (SAL) have recently seen quite an infl ux of inqui- Corporate style fl ying with Club Saab 340 ............................11 ries for more aircraft. During the early SkyBahamas CEO wins Bahamas summer months it was very quiet, more Chamber of Commerce Industry Award ................................12 than usual, but in the latter part of the summer, activity picked up considerably. Most are from existing customers looking Argentinean regional airline Sol Líneas Aéreas operates at expanding or swapping out older Saabs for newer models. We can now see that a six-strong Saab 340 fl eet ...................................................13 the last quarter of this year will get very busy, which is good for us all. Many are also evaluating buying out their Saabs which shows the confi dence they have in the Polet Airlines adds fi ve Saab 340Bs ......................................13 type. Values of Saab aircraft are holding up, which is also true for other turboprop aircraft. The turboprops have weathered this latest economic storm much better Saab Destination: Voronezh/Chertovitskoye ..........................14 than narrowbody and regional jets, not to mention corporate aircraft. Saab pilot training stretches across the globe .......................15 So far this year we have concluded 14 aircraft transactions. Five of these are Saab 2000 extensions or new Saab 2000 leases with existing customers. At the time of Rex opens pilot academy .....................................................16 this writing, there are no Saab 2000s available for sale or lease. The entire fl eet is PenAir founder takes the ride of his life .................................16 active or in the pipeline destined to new customers. At SAL we will have a few com- ing off lease in the next six months. There are about 10 Saab 340As available in pas- Saab Profi le: Scott Grier, Loganair Chairman .......................17 senger confi guration, and these are very good “entry level” 30-seat aircraft. Many of our successful customers began with Saab 340As, and we have placed four so GE CT7 powers the Saab 340 fl eet ......................................18 far this year. There are only six Saab 340Bs currently advertised, and we have found homes for fi ve to date. Finally we have a grouping of ex-Mesaba 340Bplus’ avail- Saab 340 operators to meet for 2010 conference ................19 able. These aircraft are perfect for the customers interested in acquiring a common spec fl eet of modern, relatively low-time aircraft complete with Active Noise Control Mark your calendar ...............................................................19 Systems in the cabin. These will defi nitely not sit around forever… Saab operators map... ....................................................................... 20 Since our last issue, we have seen a major new customer come into the Saab 340 family. Polet Airlines accepted its delivery of fi ve Saab 340Bs from American Eagle, and these became the fi rst Saab 340s in Russia. While Polet is a Saab 2000 operator, they have decided to extend their fl eet to 30-seaters. Being the fi rst Saab Cover photo: Dalibor Vlcek 340s in Russia, we now have Saab 340s fl ying in 34 countries on six of the seven captured this Saab 340B image continents. Antarctica can’t be too far behind… in Brno, Czech Republic. The Central Connect Airlines’ aircraft is operated on behalf of Czech As you read this latest issue of SMR, we are gearing up for the biennial Saab 340 Airlines. Operators Conference in Florida during the early part of October. If you have not arranged to attend just yet, please do so. It is a great event that will allow you to gain insight on the latest status of the Saab 340 fl eet as well as plans for the future. Market Report is published by The fact that so many vendors attend with senior people also adds value to the Saab Aircraft Leasing event. I and my colleagues at SAL, as well as Saab Support and Services look Editor: Kelly Murphy forward to seeing many of you in Clearwater, Florida. During the autumn, we will Emerald Media also be in attendance at ERA in Barcelona, as well as RAAA in Australia, and the US [email protected] Valuation Conference in Washington, D.C. Europe: Alison Chambers Emerald Media So let’s hope that the “winds of market improvements” will continue to fi ll our sails [email protected] for the rest of the year. Design and Layout: Aeris Graphic Design [email protected] Printed in USA September 2010 ©2010 Saab Aircraft Michael Magnusson President and CEO, Saab Aircraft Leasing SMR_Sept2010_cc.indd 2 9/1/10 3:09 PM MARKET REPORT OLT EXTENDS LEASES ON TWO SAAB 2000s Germany’s second oldest airline, OLT has two of the type which it invitation from Airbus Industries to regional carrier OLT (Ostfriesische maintains in-house at its Emden run shuttle fl ights on the manu- Luft transport GmbH) continues to and Bremen engineering facilities. facturer’s behalf between its UK show its longevity and growth with Recently, OLT extended leases on base at Bristol Filton Airport in the its combined Saab 340 and Saab two of its three Saab 2000s which southwest UK and its manufac- 2000 fl eet. First introducing the fi rst joined the fl eet in 2002 when turing facilities at Bremen, via Saab 340 to its operations in 1999, the company responded to an Hamburg. MARKET REPORT | September 2010 3 SMR_Sept2010_cc.indd 3 9/1/10 3:09 PM MARKET REPORT STEEL HEART OF THE REPUBLIC CENTRAL CONNECT GROUP FLIES SAAB 340s THROUGHOUT THE CZECH REPUBLIC STORY AND PHOTOS BY ERYL CRUMP JOSEF HORÑÁK, CHAIRMAN- “Th e Saab 340 is a great plane. I of passengers or cargo. We have SUPERVISORY BOARD AND think it’s a little undeservedly certainly enjoyed our experience FOUNDER OF CENTRAL overshadowed by the boom of of operating and maintaining this CONNECT AIRLINES, IS A the (regional) jet which was type,” he shares with Saab Market GREAT FAN OF THE SAAB deployed on similar routes in Report. 340. HIS AIRLINE, BASED AT the early 1990s at the same time ˇ LEOŠ JANÁCEK AIRPORT, as the Saab was being produced. Th e airline, part of the Central OSTRAVA IN THE CZECH Today, it appears that due to its Connect Group, was founded in REPUBLIC, OPERATES SEVEN economy of operation and reli- December 2003. Central Connect OF THE TYPE ON REGIONAL ability it remains a very important Airlines operates scheduled PASSENGER AND FREIGHT machine in the fi eld of regional fl ights from Ostrava to Vienna. FLIGHTS. airlines whether in the transport Th e twice daily fl ights off er con- JOSEF HORÑÁK nections to Austrian Airlines’ 4 MARKET REPORT | September 2010 SMR_Sept2010_cc.indd 4 8/31/10 10:38 AM MARKET REPORT “The Saab 340 is a great plane. I think it’s a little undeservedly overshadowed by the boom of the (regional) jet which was deployed on similar routes in the early 1990s at the same time as the Saab was being produced…” — Josef Horñák Chairman-Supervisory Board and Founder Central Connect Airlines network. A similar frequency is “Since the beginning of the opera- Earlier this year, the airline estab- operated to Prague. Th ese fl ights tion, we have put an emphasis on lished Central Charter Airlines, are operated on behalf of Czech quality,” adds Horñák. “Nowadays another company within the Airlines, and one of the Saabs is there are lots of small operators, group to operate charter opera- painted in the fl ag carrier’s colors. who off er enough to solve the tions with two Boeing 737s. How- Flights to Brno, Czech Republic, problem of where and when the ever, Horñák believes the most Split and Zadar — both resorts in service. As for air operations, we signifi cant development of his Croatia — are also operated. concentrated on developing the company recently is the construc- Saab 340 aircraft operations. We tion of a new maintenance hangar Th e airline’s latest route is to operate two aircraft for passenger operated by JOB AIR-Central Munich. One of its Saab 340s fl ights and the others for cargo European Aircraft Maintenance has been painted in a striking contracts.” (see sidebar on page 6). “Ostrava!!!” color scheme. MARKET REPORT | September 2010 5 SMR_Sept2010_cc.indd 5 8/31/10 10:38 AM MARKET REPORT JOB AIR builds its maintenance presence “We used an existing project Since its establishment in 1993, JOB AIR has become one of Cen- investor in Iceland who tried tral Europe’s largest maintenance organizations.
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