Here are some of my thoughts on the latest announcements on the...

Here are some of my thoughts on the latest announcements on the Jetstar V2500 maintenance contract:





As we know, Jetstar awarded QHLa 3yr A320 V2500 contract. I wanted to be sure of the number of aircrafts and upside potential.

Seems there are 68 aircraft from Jetstar using these engines. I was thinking if QHL performs and executes this contract well, it might extend it to their own (Qantas) aircrafts.

But alas, Qantas only operate 4 of these. But Wait, silver lining, 109 are on order! So, a massive upside if they renew and extend their contract.

Been thinking how much, or should i say, margin this $30-$35mil contract would pull in. I heard from a variety of sources but a good guide might be 15%, depending on the 'terms'.

Key thing, with the new aircrafts, and QHL building its portfolio, maybe Air NZ, Virgin and other airlines would also join on board, allowing true economics of scale and expansion to other maintenance items.

Up and On!