Jetlogic takes off with first-year profit thanks to airlines chaos

Published on Friday 30 July 2010 11:02

JETLOGIC, the fledgling Scottish airline, has turned a profit in its first year of trading, as it benefited from the disruption to commercial carriers in the aftermath of the volcanic ash eruption and the collapse of FlyGlobespan.

The firm, which generated 4.5 million in revenues in its first 12 months, smashing its own sales target of 1m, is now hunting for new headquarters in Edinburgh after opening bases in Los Angeles and New York. About half the company's business is generated in Europe, 40 per cent in the US and the remainder from the Middle East.

Founded by managing director Leigh Wilson last July, the company operates leased aircraft to fly wealthy individuals, including sports and music stars.

Wilson, who launched Jetlogic with 48,000 in private funding, said the company, which generates around 5 per cent of its business from Scottish clients, had been boosted by the loss of commercial routes operated by FlyGlobespan, which fell into administration this year.

Wilson, who declined to give details of the company's profitability, said only that it was "in line" with its level of turnover. "We have been absolutely delighted with the performance this year," she said. "In addition to higher turnover than we initially expected, we have also almost paid back all of the 48,000 we borrowed to start up the company."

Wilson added that the firm's reliance on heavier private jets - used for long haul flights and for transporting groups of people rather than individuals - had protected it from the economic downturn. "Companies which use lighter jets have suffered more," she said. "Business people who would have used small private aircraft are cutting back and opting to fly business or first class on a scheduled service instead. The majority of our clients, such as sportsmen and women, tend to have a need to fly quickly over long distances, or have a large amount of equipment, or an entourage in tow and have no other option."

In the past five months, Wilson said, the company has begun marketing "empty legs" - planes returning from a trip - to clients looking to save money.

Jetlogic employs five staff in Scotland, but Wilson said she was currently recruiting employees to take the workforce to around ten by the end of the year.