Integrator and postal airlift contractor West Atlantic has put a new management team into the pilot’s seat after a U-turn on a possible flotation on the Stockholm stock exchange.
The Swedish firm, in which US-based ATSG owns a 25% stake, yesterday announced a major managerial shake-up, including a new CEO, “to increase shareholder presence and aviation experience amongst the directors”.
The move came after West Atlantic, which operates subcontracted flights for DHL, TNT, FedEx, UPS, La Poste and various other postal companies, announced improved financial results for 2015 driven by expansion of its freighter fleet under new contracts.
Explaining the managerial reshuffle, West Atlantic stated: “Following a decision to cancel the project to explore the possibility of a listing of the shares on Nasdaq Stockholm, an Extraordinary General Meeting was held where the shareholders of the company decided to change the composition of the Board. The aim was to increase shareholder presence and aviation experience amongst the Directors.”
Long-serving CEO and President Gustaf Thureborn stepped down from the post. However, the company described the parting as “a mutual decision” and thanked him “for his valuable contribution to the group during his more than 20 years in office”. In parallel, four board members also resigned their posts.
The interim CEO will be Fredrik Groth, who joined the company in January 2016 from his position as COO of MEGA Global Air Services with over 25 years’ experience in aviation. Four new directors were also appointed to the board.
In 2015, the group’s revenue grew by 13.3% to SEK 1.4 billion, which was an underlying rise of 8.6%, while adjusted operating profits (EBITDA) increased to SEK 248 million, which was a high margin of 17.6%. But the airline made a full-year net loss of SEK 49.6 million compared to a SEK 10.6 million profit the previous year.
The revenue growth was primarily attributable to the Boeing 737 fleet expansion and the deployment of three Boeing 767 aircraft during the year, including two in the fourth quarter, under the strategic partnership with ATSG. The B767s are operating for an unnamed ‘global integrator’ under a multi-year agreement while four B737s are flying for DHL Express. In addition, the group secured a five-year contract for domestic airmail flights in Norway starting last August.
Commenting on the outlook, West Atlantic said. “The overall development of the European air freight market remains strong with regards to both temporary cover and long term additions which is illustrated by the awards during the year.”
West Atlantic expects revenues to continue growing in the first half of this year, driven by more B737 and B767 flights. However, a contract with PostNord is coming to an end and West Atlantic said it also aims to expand its presence outside Europe to use some of its smaller planes. The bulk of its 50-strong fleet comprises Bae ATP jets.
