Global Capacity Solutions
Icelandair Group offers a wide variety of aviation related solutions through Global Capacity Solutions. This includes all types of leasing, ranging from VIP passenger charter flights to ACMI cargo operations and even dry lease and financing. GCS can offer its customers both cargo and passenger aircraft ranging from short range narrow-bodies to long range wide-bodies. For this reason, in addition to the leasing aspect, all aircraft trading activities on behalf of the Icelandair Group are channelled through GCS.
With its array of products and services GCS has a global reach and is currently involved in different activities on all continents, both in the most mainstream locations, like London and Brussels, as well as some of the most remote places on Earth (Yakutia & Papua Niu Gini).
Global Capacity Solutions The international aircraft market is forecast to double in volume over the next 20 years, adding 20,000 new aircraft. From this number about 80% are from the narrow body and mid-size wide-body segment. This is why the commercial strategy of GCS is to focus on this fast growing and lucrative part of the market, while keeping an eye out for opportunities in the relatively underdeveloped regional aircraft segment. Less emphasis will be put on large capacity aircraft due to the different risk characteristics involved.
The GCS portfolio of companies consists of a network of individually managed small to medium sized aviation companies with a coordinated commercial strategy and financial control, Loftleiğir Icelandic, Latcharter Airlines, Bluebird Cargo and Icelease. Great emphasis is placed on utilizing the specific expertise within each company by giving the management of each subsidiary full control over how they conduct day to day business while adhering to the unified strategy. This is important in order to reap maximum benefit from both local and industry specific knowledge thus creating added value for the Group.
An emphasis has been put on building up a strong operation in the emerging markets of Central and Eastern Europe. In 2007 we finalized the purchase of a 50% stake in the Czech airline Travel Service, together with options for an additional 30% later this year. Travel Service is a charter airline that operates aircraft between Prague and Budapest and several cities in the Mediterranean. Last year Travel Services carried 1.8 million passengers, which is somewhat more than Icelandair carried on its own routes. The company became an associate member of Icelandair Group in November 2007.
EBITDA for the business segment was
ISK 2.2 billion, up by 943 million from 2006