Dart Group expands passenger air service

LONDON (AFX) – Dart Group PLC, the aviation services and distribution group,
said it will be expanding its Aviation Division’s successful passenger
operations to offer low cost passenger services from Leeds Bradford
International Airport to European business and leisure destinations.
The group has named the new low cost service “Jet 2” which will be operated
by its wholly-owned subsidiary, Channel Express (Air Services), alongside its
established contract passenger and cargo operations.
Dart said this business will enable the group to leverage its existing skill
base and, in future, will also maximise the utilisation of its Boeing 737-300
“Quick Change” aircraft, which fly passenger services by day and cargo by night.
In the year to March 31 2003, start up costs in the order of 2 mln stg will
be incurred, said the company. In the first full year of operation, Jet 2 is
forecast to be earnings neutral and become earnings enhancing thereafter.
As an existing operating airline, the group’s Aviation Division already has
the majority of the fixed cost structure to support this expansion which,
therefore, should be viewed as incremental to the existing core operations, the
company added.
Dart chairman and chief executive Philip Meeson said Leeds Bradford
International Airport has a catchment area of 9.5 mln people who are not
adequately served by low cost carriers. “It is my belief that JET 2 will be a
significant contributor in the growth of the group’s profits in the years to
come.”
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