CNN report......Baltia Air Lines Third Pilot Group
Post# of 41413
Posted On: 04/13/2015 3:42:03 PM
CNN report......Baltia Air Lines Third Pilot Group To Create Excess of $110 Million Net Income
By SuperYoshik | Posted 2 hours ago 0
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In what is being deemed as a financially strategic decision, Baltia Air Lines (OTCBB:BLTA) recently began training its third set of pilots in preparation for passenger flights. The second and third flight crews will join the first group, who completed training several months ago, on the proving flights. Many see this as a move by Baltia to be more adequately prepared for post-certification flights. However, the company’s 747 aircraft does not require three groups of pilots, hinting at a likely acquisition of additional aircraft.
It is likely that Baltia is in the process of purchasing four 747’s that Delta Air Lines retired in mid-2014, and is training additional crew to operate a second, third, and possibly fourth aircraft prior to first flight. With a goal of assembling a fleet of four to five planes during the first year of revenue flights, Baltia is positioning itself for rapid growth.
Due to fuel costs being substantially lower than Baltia’s pro-forma calculates, profitability may increase to 30% or more, driving net income to an excess of $90 million at an aircraft load capacity of 64%. The realistic load will be closer to 90% or more, thus Baltia should be capable of generating 26% more net income, or over $110 million in year one of flights.
Trading multiples for established airlines typically fall between 10x and 14x earnings. However, companies that are in their first few years of generating revenue frequently trade at 20-30x earnings. Therefore, by the end of the first year of flights, Baltia should see a valuation between $2.2 billion and $3.3 billion, without consideration of other variables such as industry growth, marketing, and additional expansion.
By SuperYoshik | Posted 2 hours ago 0
Share
In what is being deemed as a financially strategic decision, Baltia Air Lines (OTCBB:BLTA) recently began training its third set of pilots in preparation for passenger flights. The second and third flight crews will join the first group, who completed training several months ago, on the proving flights. Many see this as a move by Baltia to be more adequately prepared for post-certification flights. However, the company’s 747 aircraft does not require three groups of pilots, hinting at a likely acquisition of additional aircraft.
It is likely that Baltia is in the process of purchasing four 747’s that Delta Air Lines retired in mid-2014, and is training additional crew to operate a second, third, and possibly fourth aircraft prior to first flight. With a goal of assembling a fleet of four to five planes during the first year of revenue flights, Baltia is positioning itself for rapid growth.
Due to fuel costs being substantially lower than Baltia’s pro-forma calculates, profitability may increase to 30% or more, driving net income to an excess of $90 million at an aircraft load capacity of 64%. The realistic load will be closer to 90% or more, thus Baltia should be capable of generating 26% more net income, or over $110 million in year one of flights.
Trading multiples for established airlines typically fall between 10x and 14x earnings. However, companies that are in their first few years of generating revenue frequently trade at 20-30x earnings. Therefore, by the end of the first year of flights, Baltia should see a valuation between $2.2 billion and $3.3 billion, without consideration of other variables such as industry growth, marketing, and additional expansion.
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