ASM adds Mumbai to its list and refutes takeover rumours

ASM has already in a joint-venture with Abu Dhabi’s Royal Jet in India through its Goa operation and founder Vito Gomes (pictures above) said last week’s opening of the new Mumbai venture was aimed at increasing its Indian business.

“We’re targeting the high net worth individuals in India who enjoy in-flight luxuries to and from India, and we’re also looking into many other areas where we can provide better services for our clients, such as logistics and operations support,” he said.

Gomes spoke about the speculation over a possible take over or merger.

“There have been rumours of ASM being bought by other flight support services – but that’s news to me,” said Gomes. “We have no partners and I don’t envisage the ownership structure changing, although we are looking to acquire aviation businesses that provide synergies with our one-stop operation.”

He acknowledged that the current market conditions remain challenging, however, and that rising oil prices, while an industry-wide problem, are  challenging for ASM and the operators, which derives half its income from fuel re-selling.

“It’s still a very price-sensitive market and it keeps changing by the day,” he said. “There will be more cash required in order to sustain bigger volumes.”

Gomes believes the Indian drive will provide a launch pad for further growth in South-East Asia – which already accounts for nearly half of the company’s business – as well as China, Vietnam, Africa and Sri Lanka.

“We’re in the process of recruiting for these markets and we always make sure we hire experienced professionals in the industry,” added Gomes.

ASM managed to withstand the global financial crisis, posting turnover of $165 million in 2010 – a 20% growth on 2009 – and has grown from a small business into a medium-sized enterprise with 40- plus staff across its network.