Aerfin (Carphilly)

Origins

Record order books for new aircraft, coupled with second tier operation aircraft becoming harder to finance through conventional debt structures, has created a wave of opportunity for purchasing quality retired aircraft and engines. In addition, global competition amongst airlines has compressed profit margins. Airlines are focused in working with suppliers with a high level of technical expertise who can not only reduce aircraft maintenance spend but can provide pertinent specialised advice to maximise product performance, enhance asset residual values and give enhanced predictability of maintenance spend. Despite having a seasoned management team of aviation professionals backed with a track record of success, the business still suffered the same growing pains of any start up business with no traceable history. To begin with, it couldn’t get credit for mobile phone contracts and foreign currency payments over a certain value had to be transacted over the counter at the bank. Whilst harbouring ambitious growth plans, the business has adopted a sensible growth strategy aimed at producing sustainable revenues, high quality services and financial stability for the company.

Success Factor

Benefitting from a strong regional presence in the Aviation sector, AerFin has been able to recruit high quality aviation professionals to provide a consistently excellent service for customers. The opportunities and challenges that occur from working in a fast moving, and global marketspace, have allowed the business to benefit from excellent staff retention levels, which is paramount to the success of the business. In 2013, AerFin benefitted from support through the Welsh Government, which allowed it to finance the refurbishment of the former General Electric Aero Engine Services facility at Parc Bedwas, and create 10 high quality jobs that were instrumental to the growth of the business. Finally, the company benefitted from investment made by CarVal Investors, who acquired a major stake in the business in 2014 which has allowed the business to extend its service offering and enhance the platform to become capable of handling higher transaction volumes, without detracting from the quality of supply

The Future

With strong access to capital for new product line investment, and fast growing brand reputation, the business is well placed for significant growth over the next 5 years. A major aim for the company is to continue to position ourselves as a key strategic partner to airline operators across the globe, through continuing to provide hourly, cost-saving, contractual support programmes. Another objective, is to increase its market presence in Asia-Pacific, the Middle East and the Americas by delegating more resources to the regions. AerFin is also looking to increase the range of service capabilities that it can offer operators, as well as exploring other potential product lines that it can support in the market.