On the Record with STEVE GRIMES, CHIEF EXECUTIVE, HARRODS
AVIATION
Harrods Aviation is to open two new FBOs next year, one at Paris-Le Bourget,
the other at an as yet unnamed major European destination, according
to CEO Steve Grimes,
"Some of our customers have been pressuring us to open at
Le Bourget for some time, and we are currently in advanced negotiations
to satisfy this," said Grimes. He wouldn't be drawn on the
identity of the second location, nor whether it would be a total
buy-out or a joint venture with an existing FBO.
The two new FBOs will be the first acquisitions since Harrods'
Metro Business Aviation bought Hunting Aviation's FBO operations
at London's Heathrow, Luton and Stansted airports. The new Harrods
Aviation title was launched at EBACE Geneva in May this year.
"We've had a very good response to the name change from all
sectors. We knew our American clients were very keen on the quality
brand image of Harrods, but we were concerned that we might lose
a couple of clients because of it. In fact, we've kept them all,"
Grimes told Show News.
Harrods' FBO business at Luton has dramatically improved on its
first quarter 2003 movements. "As soon as the Iraq hostilities
ended, business came back very quickly, much quicker than in the
aftermath of 9/11," noted Grimes. "Since then it has
been so good that we have made up for the quiet start and are
back on, or above, budget.
"Our newly expanded Luton FBO is a total success story. We
have continued to beat our budget forecast, month on month, since
the end of March. Luton movements are currently 10% above budget,
year on year, and although they are as yet unaudited, we reckon
we are approaching 40% of Luton's FBO market share, which is also
up by about 10% on last year." The quadrupling in size of
Harrods' $1.2 million, 40-seat passenger terminal with separate
VVIP lounge has also been well received.
At the Harrods-Swissport Executive Aviation FBO at Heathrow movements
are steady at around 2,100 per year; London-Stansted movements
are holding at 6,000+, while Luton's 10% increase in traffic will
top 5,000 movements for the first time. However, Harrods' Stansted
VVIP (B747, B777, A340) movements are down on last year's. These
aircraft have been able to use Heathrow as more slots became available
as a result of airline schedule cuts.
At Harrods Aviation's London (Battersea) Heliport, movements are
stable despite helicopter charters being quieter this year. "Helicopter
charter traffic has been quiet since the outbreak of the Iraq
war and is continuing so," notes Grimes.
Harrods' engine shop was moved from Luton to Farnborough earlier
this year (at a cost of around $160,000) and is currently contracted
to work on around 210 TFE 731engines.
Harrods Aviation is an authorized Bombardier Service Center that
also covers most Learjet models at Luton and Stansted. Grimes confirmed
that his company is very busy with Gulfstream IV and V maintenance
and does not believe that the new Gulfstream Aerospace operation
at Luton will affect its general maintenance work, but should impact
on warranty business.
