The year 2008 came about with record fuel prices proved that the aviation industry needs to develop a more efficient and viable business model. We have seen various airlines filing for bankruptcy, merging and others raising funds to what shareholders would deem unfavorable terms. This was coupled with current credit crunsh, which only made it worse. However, other sectors have benefited from this deterioration as airline operators are now looking to upgrade their fleets with new, modern and more fuel efficient aircrafts.
Companies like BEAV have benefited largely from these new developments and we can see the increase in the NP in Q2. In addition, its actual performance continues to beat estimates and y-o-y growth for 2009 is now estimated at 29%. If we also look at the Middle East and South Pacific avition markets, they are growing fast and will definately need BEAV products.
$25.7 (08/15/08)
