Smart Aviation, a charter carrier based in Egypt is negotiating with CIAF Leasing– Air Operation to secure a portion of a $ 20 million contract. This request refers to purchasing a new long-range passenger aircraft signaling Smart Aviation’s aspiration to grow. The type of aircraft was though not disclosed.
Financial Recovery and Strategic Sales
With this bold move, Smart Aviation is not just getting a loan but also managing its existing financial obligations. More particularly, the company plans to sell one of its aircraft for 4 million, an ambitious plan to manage the accumulated interest on a massive 33 million bank loan. The company reported a USD17 million profit last year, marking an important recovery from a USD2.5 million loss in 2020. In addition, Smart Aviation which counts EgyptAir among its shareholders currently manages a fleet that includes five Cessna 680 Sovereigns, a G450 and a Beech King Air 350i twin turboprop. The company uses these aircrafts for various services, such as VIP or business charter flights, air ambulance operations, ground handling, and multiple airport calibration tasks.
Other Flight Companies’ Investments
Similarly, in the competitive aviation industry, Akasa Air, India’s low-cost carrier has received around USD 125 million which commenced revenue two years ago at around USD350 million or a four-fold increase on its initial valuation. Bangalore-based private equity firm Premji Invest and Manipal Group-owned venture capital firm Claypond Capital were under discussions to acquire an important minority stake. This investment similar to Smart Aviation’s approach to managing its fleet and finances highlights the importance of strategic funding for improving the fleet in the competitive aviation market.
Smart aviation’s strategic approach to financial investment and fleet expansion shows the importance of securing new capital and managing efficiently the depts. Therefore the question that remains is the following: How will these strategic investments affect the airline and position its influence in the aviation market in the near future? Share your thoughts in the comments below.
