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DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A



TSX:DA.DB.A - Post by User

Post by trumpmasteron Jan 06, 2011 7:50pm
253 Views
Post# 17936055

Going higher...

Going higher...

Technical services

One of the areas in which Discovery Air is making its most aggressive moves is in its newly set-up technical services division, says Jean Genest, its president and CEO. The company recently took over a 60,000 square foot hangar at Quebec City’s Jean Legage Airport from Exceltech Aerospace after the latter came into hard times earlier this year. The facility hosts 35 employees as well as avionics, composites, sheet metal, welding and interiors workshops.



“Our core offerings to clients are cost competitiveness, quality and reliable turnaround time,” said Genest. “We recently achieved Aircraft Maintenance Organization (AMO) status, which enables us to do service work on Dash-8s out of the facility. We are also working to get AMO approval for ERJs, CRJs and Saab 340s.This will substantially increase the range of services that we can supply.”



How successful Discovery Air will be in increasing its footprint remains open to question. For example several things continue to be up in the air, notably where increased demand its services will be strongest (company executives currently project that future revenue growth will some roughly from a 50-50 split between the public and private sectors).



Also open to question is the future of the Top Aces contract with the Government of Canada, which is expected to expire in 2011. The company is currently in talks to move towards a longer-term contract. However as at press date, a request for proposal had not yet been issued.



All we know now for sure is that the impressive backgrounds of key company managers suggest that betting against them is unlikely to be a winning proposition.

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