Baltia Airlines Projects Profitability For First Y
Post# of 41413
Feb 9, 2014 4:37 PM
In the booming airline industry, one startup company seeks to fill a very important void in the international travel market. Baltia Airlines (OTCQB:BLTA), a New York corporation based out of John F. Kennedy Airport, is nearing the end of its certification journey and beginning its most high-growth period in time.
Baltia's strategy to capture the Eastern European market is a two-pronged approach. First, they have an exclusive route to St. Petersburg, Russia, from one of the largest international hubs in the world: John F. Kennedy Airport. Second, they are bringing back the luxury of an international airline. While other companies continue to squeeze passengers into tiny seats and treat them poorly, Baltia offers the comfort and ease of mind that no other international airline can provide. While St. Petersburg alone will generate over $18 million in profit from one aircraft over their first year of flights, Baltia is not limiting itself to just the one Boeing 747 that they own. The company seeks to purchase at least one aircraft every three to four months post-certification. At just 64% capacity, each aircraft can yield $18-30 million in annual profits - approximately 15-25% profit margins - as the cost of fuel continues to decrease. However, Baltia will realistically get at least 85-90% of the plane occupied, and what space is left can be filled with cargo, which has potential to generate even more revenue than ticket sales.
Purchasing the Boeing 747 aircrafts also saves them a tremendous amount of money (tens of millions) over their first five years of flights because a lease is no longer required. After that, they will have a fleet of at least a dozen planes that will generate between $400 to $600 million in annual income, depending on fuel costs. It is likely to be on the higher end because fuel costs will continue to decline over the next few years.
Using a conservative trading multiple, paired with the future market valuation tendencies, Baltia's stock will likely see approximately $3.00 to $5.00 per share within the next three years. At just one penny currently, Baltia offers an outstanding opportunity to invest in a very rapidly growing company that has essentially no competition with its exclusive route.
Themes: Baltia, Airlines, DOT, FAA, transportation, aircraft, JFK, willow run, oscoda, certification