04 February, 2016

Abraaj-backed Joramco assessing $10m investment

Joramco is considering investing at least USD 10 million (AED 36.7 million) to expand its facilities and capabilities in response to burgeoning demand and an awakening Iranian aviation market.

Thursday, Feb 04, 2016

Dubai: Joramco, a Jordan-based aircraft heavy maintenance company, is considering investing at least $10 million (Dh36.7 million) to expand its facilities and capabilities in response to burgeoning demand and an awakening Iranian aviation market.

Husam Zayed, Chief Commercial Officer, told Gulf News on Wednesday a decision is likely to be taken this year with the company currently favouring the investment.

The expansion will include building a new wide-body aircraft capable hangar, purchasing new tools and parts, and increasing its workforce at a cost of “probably not less than $10 million,” Zayed said in Dubai at an aviation conference.

The company is 80 per cent owned by Dubai-based private equity fund The Abraaj Capital Group with Royal Jordanian holding the remaining stake.

Joramco is capable of servicing Boeing 727s, 737s and 787s and all types of Airbus aircraft except the A380 and A350, though is studying introducing capabilities for the latter.

The new hangar will be built alongside its five hangars at Queen Alia International Airport in Amman, Jordan. Its clients include flydubai, Gulf Air, Air Arabia Jordan and minority shareholder Royal Jordanian.

Joramco, who is profitable with an annual turnover of around $70 million, according to Zayed, will self finance the project, including contributions from its shareholders.

The decision to expand its facilities is in response to the growing number of aircraft in the region, Zayed said.

“In some cases we had to reject business from customers because of the non-availability of slots.”

The investment will increase the number of aircraft Joramco can service at any single time by around 15 per cent. It can currently service 12 narrow body aircraft like the Boeing 737 at once or 8 aircraft if it’s a mix of wide-body and narrow-body.

Joramo is also expecting an influx of business from Iranian carriers in the coming years after financial and economic sanctions against the country were lifted last month on January 16. On January 28, national carrier Iran Air signed a deal to buy 118 Airbus aircraft.

“We see big potential coming from Iran,” Zayed said.

Alexander Cornwell Staff Reporter

Gulf News 2016. All rights reserved.

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