UK business aviation services provider Gama Aviation has secured two long-term special-mission contracts, which it says will help to bolster revenues by more than £10 million ($12.2 million).
The awards come as the Farnborough-headquartered company has reported an increase in revenues of more than 10% for the 12 months ended December 2016.
Gama’s first new contract was awarded by the UK’s National Police Air Service for the provision of maintenance, continuing airworthiness support and spare parts for its four Vulcanair P68R piston twins. The deal is for an initial three-year term, with an option to extend by two more years. The company has also secured a contract from an existing, unnamed client to provide aerial survey missions for a five-year term.
“We are delighted to be starting the year positively with these two important awards, representing over £10 million in revenues over the period of the contracts,” Gama founder and chief executive Marwan Khalek says. “Both were competitive, and winning them reflects our strong special-mission capability in the UK, both as a primary and secondary contractor.”
Khalek is referring to long-established contracts such as with Scotland’s healthcare supplier, for which Gama has been providing ambulance support with Beechcraft King Air twin-engined turboprops since 1993.
Gama saw its revenues climb by more than 10% in 2016, mainly as a result of a rise in its global managed aircraft fleet from 147 to 165 units and a robust performance from its US operation. The company expects the growth to continue throughout 2017 and beyond. Its optimism is sparked by the merger on 1 January of its US management and charter business with the Landmark Aviation arm of fellow UK business aviation services company BBA Aviation. The partnership, which is known as Gama Aviation Signature Aircraft Management, has a fleet of more than 200 aircraft.
“This has been a busy and productive year for Gama Aviation,” Khalek says of 2016. “We have targeted and delivered organic growth and operational efficiencies despite challenging markets in some regions,” he adds, referring to the European market, where its charter and management services business saw a 15% fall in revenues, attributed to soft market conditions.
“The recent combination of our US aircraft management business with BBA is a clear demonstration of our determination to build scale into our business in ways that add value to our shareholders,” Khalek notes.