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Posted On: 02/13/2014 9:55:56 AM
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Baltia: America's Newest Airline
Baltia Air Lines is preparing to operate the only non-stop flights for passengers, cargo and mail from New York's JFK International Airport to Pulkovo Airport in St. Petersburg, Russia.
N/A (I-Newswire) February 13, 2014 - In the ever-consolidating airline industry, smart investment options are becoming increasingly difficult to find. As corporate holdings of US carriers become limited to just a handful of entities, the need for a new international airline to rejuvenate the industry is greater now than ever before. While several companies have sought international air carrier certification over the past two decades, only one - Baltia Airlines - has been able to survive the grueling certification process, and has aptly been deemed "America's Newest Airline."
Baltia was granted an exclusive route from JFK International Airport to Pulkovo Airport in St. Petersburg, Russia, by the DOT several years ago. Since then, the company has been preparing to fly passengers direct to St. Petersburg, cutting travel time from JFK down to just eight hours, from the current time of nearly eighteen. But this is simply their market. The million-dollar question is: what makes Baltia an attractive investment?
The adage "numbers don't lie" is arguably the easiest selling point for the company. For their first year of flights, with just one Boeing 747 aircraft (which they already own), the company should expect at least $30 million in net profit. Here's the breakdown:
1) Total revenue for first year of flights, at 64% capacity, is $120 million. Realistically, their capacity will be closer to 90%, given that current non-direct flights to St. Petersburg get an average of 85% load capacity. Revenue should thus be closer to $180 million.
2) Fuel is their highest cost, and the company over-projected this cost by approximately 20% (projected $51 million, actual cost will be about $40 million). As fuel prices continue to decline, Baltia's profits will increase.
3) Conservatively, Baltia will generate a profit margin of 25%, which is 1,000% higher than JetBlue's margins.
One of the most lucrative aspects of Baltia is their current market cap of just under $40 million. With an industry EBITDA valuation multiple of 6-8 for the largest companies, and 10-15 for the smallest ones, Baltia will soon be trading at least 1,000% higher than its current valuation by its first flight. However, that is not the only thing that will attract institutional investors over on Wall Street…
Now to the most imperative fact about Baltia's growth potential: each aircraft will generate $30 million or more in annual income. As America's newest international airline, Baltia will be doing everything within its financial limit to purchase additional aircraft, which saves them money on leasing costs. The engines may then be leased at a much cheaper price than purchasing them. The company's current goal is to acquire one 747 every 3-4 months, which will establish a fleet of over a dozen planes within 5 years of flights. Collectively, these will generate upwards of $400 million in annual income.
There is not a single airline in the United States that can remotely match the kind of growth Baltia will see over the next five years. To reiterate: with a trading multiple of at least 10, Baltia should easily see a minimum of $1.00 per share within the coming months. The institutional investors will arrive once the company is certified, and once that happens, the sky is the limit.
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Arnold Smith
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new york penny stocks europe Eastern Europe Airline Russia Minsk belarus otc latvia JFK John F. Kennedy moscow riga Baltia Baltic
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Published On:
February 13, 2014
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If you have questions regarding information in this press release contact the company listed above. I-Newswire.com is a press release service and not the author of this press release.The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies and PR Agencies submit their press releases once per week,month or quarter, make sure to check the official company website for accurate release dates as our site displays the I-Newswire.com press release distribution date only.We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for or omissions in that information or for actions taken in reliance on that information.
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Baltia: America's Newest Airline
Baltia Air Lines is preparing to operate the only non-stop flights for passengers, cargo and mail from New York's JFK International Airport to Pulkovo Airport in St. Petersburg, Russia.
N/A (I-Newswire) February 13, 2014 - In the ever-consolidating airline industry, smart investment options are becoming increasingly difficult to find. As corporate holdings of US carriers become limited to just a handful of entities, the need for a new international airline to rejuvenate the industry is greater now than ever before. While several companies have sought international air carrier certification over the past two decades, only one - Baltia Airlines - has been able to survive the grueling certification process, and has aptly been deemed "America's Newest Airline."
Baltia was granted an exclusive route from JFK International Airport to Pulkovo Airport in St. Petersburg, Russia, by the DOT several years ago. Since then, the company has been preparing to fly passengers direct to St. Petersburg, cutting travel time from JFK down to just eight hours, from the current time of nearly eighteen. But this is simply their market. The million-dollar question is: what makes Baltia an attractive investment?
The adage "numbers don't lie" is arguably the easiest selling point for the company. For their first year of flights, with just one Boeing 747 aircraft (which they already own), the company should expect at least $30 million in net profit. Here's the breakdown:
1) Total revenue for first year of flights, at 64% capacity, is $120 million. Realistically, their capacity will be closer to 90%, given that current non-direct flights to St. Petersburg get an average of 85% load capacity. Revenue should thus be closer to $180 million.
2) Fuel is their highest cost, and the company over-projected this cost by approximately 20% (projected $51 million, actual cost will be about $40 million). As fuel prices continue to decline, Baltia's profits will increase.
3) Conservatively, Baltia will generate a profit margin of 25%, which is 1,000% higher than JetBlue's margins.
One of the most lucrative aspects of Baltia is their current market cap of just under $40 million. With an industry EBITDA valuation multiple of 6-8 for the largest companies, and 10-15 for the smallest ones, Baltia will soon be trading at least 1,000% higher than its current valuation by its first flight. However, that is not the only thing that will attract institutional investors over on Wall Street…
Now to the most imperative fact about Baltia's growth potential: each aircraft will generate $30 million or more in annual income. As America's newest international airline, Baltia will be doing everything within its financial limit to purchase additional aircraft, which saves them money on leasing costs. The engines may then be leased at a much cheaper price than purchasing them. The company's current goal is to acquire one 747 every 3-4 months, which will establish a fleet of over a dozen planes within 5 years of flights. Collectively, these will generate upwards of $400 million in annual income.
There is not a single airline in the United States that can remotely match the kind of growth Baltia will see over the next five years. To reiterate: with a trading multiple of at least 10, Baltia should easily see a minimum of $1.00 per share within the coming months. The institutional investors will arrive once the company is certified, and once that happens, the sky is the limit.
Additional Images
About Aggressive Stocks
We are a non-for-profit organization dedicated to spreading awareness of select investments in the t More..
Contact Information
Aggressive Stocks
Arnold Smith
N/A
N/A
Tags:
new york penny stocks europe Eastern Europe Airline Russia Minsk belarus otc latvia JFK John F. Kennedy moscow riga Baltia Baltic
Published in:
Transportation
Published On:
February 13, 2014
Print Release:
Print Release
Visit Aggressive Stocks Website
If you have questions regarding information in this press release contact the company listed above. I-Newswire.com is a press release service and not the author of this press release.The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies and PR Agencies submit their press releases once per week,month or quarter, make sure to check the official company website for accurate release dates as our site displays the I-Newswire.com press release distribution date only.We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for or omissions in that information or for actions taken in reliance on that information.
0
inShare
SITE INFO
About Us
Why I-Newswire
How It Works
Pricing
Distribution
News Center
SITE HELP
Helpdesk
Affiliate Program
Blog
Terms of Service
Privacy Policy
Content Guidelines
CONTACT US
iNewsWire.com LLC
5 Penn Plaza, 23rd FL
New York, NY 10001
(800) 713-7278
CONNECT WITH US
Like us on Facebook
Follow us on Twitter
Link with us on Linkedin
Connect with Google +
800-713-7278Helpdesk
© Copyright 2004-2013 iNewsWire.com LLC - All rights reserved.
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