For the first quarter to 31 March 2012, Group revenue increased by 2%.  After adjusting for fuel prices, revenue declined by 1%.

Revenue in Flight Support declined by 8% after adjusting for fuel prices.  The Flight Support division, particularly ASIG, was adversely impacted by the exceptionally warm winter in North America which resulted in limited de-icing revenue in the first quarter of 2012 compared to a strong Q1 2011.  Both business and general aviation (B&GA) flying hours and commercial movements were also marginally down against strong prior year comparators. Signature continued to outperform its market, although this has been masked by the 2011 exit from Miami and Tampa, which was partly offset by the contribution from the FBO acquisitions made in 2011 and the beginning of 2012. 

In Aftermarket Services and Systems there was further good progress and revenues grew by 15%, driven by solid demand for engine overhaul services and legacy products together with a strong contribution from the GE fuel measurement business. While landing gear deliveries were weaker than the same period in 2011, this was principally due to the timing of deliveries rather than underlying demand.

All businesses continued to make further operational progress, and the acquisitions made in 2011 and early 2012 are integrating well. Trading cash flows have followed the usual seasonal pattern and the Group’s balance sheet remains strong, supporting substantial investment capacity to fund a strong pipeline of potential acquisition and investment opportunities.

Commenting on the Interim Management Statement, Simon Pryce, BBA Aviation Group Chief Executive said:

“B&GA and commercial movements in the first quarter in both North America and Europe have been muted. We anticipate this continuing for the remainder of the first half, consistent with our view that the uncertain economic climate will result in low and somewhat volatile growth in our major markets in 2012. This, together with lower de-icing revenues against a strong comparator, represent headwinds for the first half, however with ongoing underlying operational progress we continue to expect this to be a year of further progress, and see good opportunities to deploy our investment capacity in a value creative way.

Over the medium-term, the strengths and track record of our business and the structural drivers of our markets give us continued confidence in the attractive growth prospects for BBA Aviation and our ability to deliver superior through-cycle returns.”

Notes:

BBA Aviation plc will announce its interim results for the period to 30 June 2012 on 7 August 2012.

Enquiries:

BBA Aviation plc
Mark Hoad, Group Finance Director / Jemma Spalton, Head of Investor Relations
020 7514 3999

Tulchan
David Allchurch / Christian Cowley / Martha Kelly
020 7353 4200

Notes to Editors

BBA Aviation plc is a leading global aviation support and aftermarket services provider with market leading businesses and attractive growth opportunities. BBA Aviation’s Flight Support businesses (Signature Flight Support and ASIG) are focused on refuelling and ground handling of business and commercial aviation aircraft. Its Aftermarket Services and Systems businesses (Dallas Airmotive, Premier Turbines, H&S Aviation, International Turbine Service, Barrett Turbine Engine Company, International Governor Services, Ontic and APPH) are focused on the repair and overhaul of jet engines and the design, manufacture and service of aerospace sub-systems and components. For more information, please visit www.bbaaviation.com.

Susan joins BBA Aviation following a distinguished global career in investment banking, having held senior positions in the US and the UK, including as Chairman EMEA Mergers & Acquisitions (Credit Suisse, 2007-2009). Susan began her career at The First Boston Corporation in 1980, gained an MBA from Yale and later worked at Bankers Trust and BZW before the latter was acquired by Credit Suisse, where she retains a part-time role as a Senior Advisor. Her experience advising clients across a range of industries, includes significant deals in the aviation and aerospace sectors.

In addition to her highly regarded skills as an international investment banker, Susan brings experience from her Non-Executive Director roles and from her positions on a variety of academic and not-for-profit advisory boards.
 
Michael Harper, Chairman commented:
"I would like to welcome Susan as a non-executive director. Her extensive international M&A experience, particularly in the US, will enable her to bring valuable skills and insights, as well as her global perspective, to the Board of BBA Aviation.”

Susan Kilsby commented:
“I am delighted to be joining the Board of BBA Aviation and look forward to working with the other Board members and management team. It is a very exciting time to be joining the Company, with its considerable opportunities for growth and development, building on the existing strengths of the business."

Susan is a director of two other publicly quoted companies, London and NASDAQ-listed Shire plc and Hong Kong-listed L’Occitane International S.A. She has confirmed that there are no other details to be disclosed under paragraph 9.6.13 (1) to (6) of the Listing Rules.

Enquiries:

BBA Aviation plc
Jemma Spalton, Head of Communications and Investor Relations
020 7514 3999

Tulchan Communications
David Allchurch, Christian Cowley, Martha Kelly
0207 353 4200
 
About Susan Kilsby

Experience
1998-present   Credit Suisse, London and New York
1996-1997   Barclays de Zoete Wedd, London
1992-1996  Bankers Trust, New York and London
1980-1988   The First Boston Corporation, New York

Other roles
Sept 2011-present  Shire plc, NED
Jan 2010-present  L’Occitane International S.A., NED
Competitor Diversity Forum – Founding Member
Wellesley College’s Business Leadership Council – Member
International Region of C200 – Chairman
Cass Business School – Senior Visiting Fellow, Chairman of the M&A Research Centre
Yale School of Management – Board of Advisers
Millstein Center for Corporate Governance, Yale – Board of Advisers

Commenting on the new facility, Dallas Airmotive President, Hugh McElroy said, “We are delighted to open our new engine service facility in Singapore, the hub of aviation activity in Asia Pacific, and we are excited to offer authorized Honeywell service to aircraft operators in the region. Dallas Airmotive has been a service provider in Asia Pacific for decades and this facility symbolizes the continued growth in our long-term commitment to expanding global support and efficient engine management.”

Among the dignitaries scheduled to be on hand for the opening ceremonies in Singapore on February 13, 2012 are officials from Singapore Economic Development Board, Civil Aviation Authority of Singapore, Changi Airport Group, Honeywell Aerospace, and several airframe OEMs and MRO providers.
 
In addition to engine maintenance services, the new RTC facility features a F1RST SUPPORT global technical support center to handle AOG and other field-related service requests. “Integral to the Singapore facility is a dedicated F1RST SUPPORT communications center to efficiently manage customer technical questions and AOG situations. It is part of our global F1RST SUPPORT network that now joins our global communications network with control centers in Portsmouth, England and Dallas, Texas. Combined they provide 24-hour, live coverage to operators in need of assistance and can command the full power of F1RST SUPPORT including the dispatch of rental assets, tooling and personnel on the spot. Dallas Airmotive Asia Pacific mobile field service teams are based in Singapore and Bangalore and we will be bringing Hong Kong and Eastern Australia on line later this year. Teams are available 24/7 to answer service needs quickly within the regions where customers need us.”

The Singapore Regional Turbine Center is the 13th Dallas Airmotive RTC in operation: 10 are located in the USA, one in the UK, one in Brazil and the new facility in Singapore. Each RTC offers maintenance and repair services that range from minor repair through hot section inspection and, depending on location, service Honeywell, Rolls-Royce, and/or Pratt & Whitney Canada engines.

Azalea Aviation incorporates two sole source Fixed Base Operations (“FBOs”), the Mobile Air Center at the Mobile Regional Airport and the Downtown Air Center at the Mobile Downtown Airport with long lease terms of over 26 and 30 years respectively.  This acquisition extends the Signature network into a key and growing business and general aviation location.

Arrindell Aviation Services provides commercial and business and general aviation services at St. Maarten’s Princess Juliana International Airport, with a 15 year remaining lease term.  Princess Juliana International Airport is the second busiest airport in the Northeastern Caribbean. Following the acquisition of Tropical Aviation in Puerto Rico in July 2011, this represents an important extension of Signature’s presence in key resort destinations in the Caribbean.

These acquisitions are in line with the Group’s growth strategy and bring the total number of North American FBOs to 65 and globally to 111.

Simon Pryce, Group Chief Executive, commented:

“The addition of these new locations represents another meaningful step in Signature Flight Support’s expansion, and further strengthens our position as the leading North American and global FBO network.  We are pleased to welcome these new businesses and their employees to the Group.  We remain focused on taking advantage of the consolidation opportunities in the fragmented FBO market as part of the Group’s broader growth strategy.”

Pat Pearse, Managing Director, ASIG Europe, remarked, “We are excited at the opportunity to partner with British Airways at a new location.  British Airways was ASIG Europe’s launch customer when we commenced operations at London Heathrow more than 20 years ago and we have enjoyed growing our partnership with them at other U.K. airports and into Asia.  ASIG looks forward to further opportunities to serve British Airways across their network.”

Commenting on this new location, Joe Gibney, Vice President and Managing Director for Signature’s EMEA operations said, “We are delighted to announce the opening of Signature Frankfurt, our second FBO in Germany. With both Munich and Frankfurt now within the Signature network we are able to offer our customers access to two key German cities, whilst providing them with the highly personalized, world class service that comes with the Signature Service Promise.”

Tim Ramsey, ASIG Senior Vice President, Sales and Marketing commented on the renewals, “This network wide renewal demonstrates our strong partnership with Delta Air Lines and the trust they have placed with us, which is built on ASIG’s commitment to consistently delivering safe and reliable service.  We value our longstanding relationship with Delta and are delighted to extend this over the coming years."

The license is for the new manufacture and repair of 300 products that will transition to Ontic from 8 Honeywell divisions in the United States. The products include electronic assemblies and microcircuits, electro-mechanical assemblies and mechanical assemblies. Ontic will support the products from their Chatsworth, California facility. Aircraft platforms that utilize the products include Boeing F/A-18 A/D Hornet, Boeing B-1B Lancer, and Sikorsky UH-60 Blackhawk.

Peg Billson, President of BBA Aviation’s Legacy Support Group, stated that "Ontic’s focus on the lifetime support of legacy products for OEMs like Honeywell assures that their customers will be supported for as long as they have a need for the products entrusted to us. Ontic refers to product transition as “adoption”, and as the “adoption” company, managing transitions from multiple locations is something we do every day. Legacy electronics and avionics have been a large growth area reflected in recent Ontic licenses and acquisitions, making all of the products in this license an excellent fit. We look forward to the continuation of our mutually successful relationship with Honeywell through the addition of these products to our license portfolio."

Tim Ramsey, ASIG Senior Vice President, Sales and Marketing, commented “We are very pleased that TAM has selected ASIG based on our proven ability to deliver high quality, safe and timely services.  ASIG looks forward to the opportunity to further extend our relationship with TAM across our global network.”

BBA Aviation’s revenues, profits and cash flows are primarily generated in US dollars and the change of presentation currency is being made in order to allow for greater transparency of the underlying performance of the Group.   As a consequence of this change, future dividends including the final dividend for the year ending 31 December 2011 will be declared in US dollars, in accordance with the Group’s existing progressive dividend policy.  Eligible shareholders will receive their dividends in sterling unless they complete and submit to the Company’s registrars an election form stating their wish to receive their dividends in US dollars. The sterling dividend will be translated at the prevailing exchange rate the day after the currency conversion election date, the date of which will be announced with the results. 

The change in the Group’s presentation currency will be effective from the results for the year ending 31 December 2011 to be reported as part of the Group’s preliminary results announcement on 2 March 2012.  These results and all subsequent financial information for the foreseeable future will be prepared using US dollars as the presentation currency.  In accordance with relevant accounting standards, comparative information will be provided in US dollars. 

Selected historical financial information for the financial years ended 31 December 2009 and 31 December 2010, and for the six month periods ended 30 June 2010 and 30 June 2011, together with key financial highlights for the financial years ended 31 December 2007, 31 December 2008, 31 December 2009 and 31 December 2010, (collectively, the “Restated Financial Information”), is re-presented in US dollars and is set out in the downloadable PDF for comparative purposes.   

Please click here to download the PDF of the Restated Financial Information.