Charter broker Hunt & Palmer International (H&P) has embarked on a twin strategy of geographical expansion and product diversification as mid-year forecasts point to a slight increase in turnover this year.

H&P earned £26 million ($46.8 million) of its total £40 million revenues last year from commercial aircraft brokerage between its UK headquarters and French subsidiary, with the remainder coming from corporate aviation charter brokerage. H&P director of corporate development Jamie Martin expects total revenue to be similar this year, with growth in business aviation countering a predicted fall in commercial aviation revenues due to fewer large product launches, conference and incentive travel operations and sporting charters. Brokerage of corporate jets was worth £14 million last year and, with a customer base drawn largely from the financial sector, has risen 25% so far this year, with Russian operations doubling in revenue, he says.

Martin adds that the London-based company, one of three major aircraft brokers, is now at a suitable size for expansion, which had been deferred during the lean years following the US terrorist attacks. "We replicated our client base in the rest of Europe following the European single-market rules of 1993 and now we are looking further afield," Martin explains. The company is to establish an office in Hong Kong, which will act as a bridgehead for future operations in China, he says, believing that as aviation grows in China, there will be an enormous demand for charter aircraft, as well as a requirement for corporate aviation from multinationals planning multi-city visits.

H&P will establish a joint venture in the country after around three years' presence in Hong Kong. "There are some barriers to entry in China, notably the lack of available aircraft, and flightplan permissions are difficult, but three companies have recently acquired licences to operate in China, so things will change," he says.

The company has also explored expansion in Latin America and southern Africa.

JUSTIN WASTNAGE/LONDON

Source: Flight International