Canadian Stock Profiles| Canadian Stock Profiles |
| Montreal based Royal Aviation was founded
in 1979 as Conifair Aviation. It provided charter flights
for passengers and cargo as well as flights for hunters.
It also maintained a state-of-the-art maintenance center
in Quebec City to service the provincial government's
fleet of aerial water bombers and other aircraft. In 1992 the company went into an expansion, creating charter carrier Royal Airlines and purchasing seven Boeing 727s for domestic flights and two Lockheed 1011s for flights to Europe. The company proved successful and was named Charter Airline of the Year in 1994, 1996, 1997 and 1999 by the Quebec Association of Travel Agents. In 1997 a new subsidiary, Royal Cargo, was created with a fleet of six Boeing 737s. It focuses on serving couriers and freight forwarders in twelve Canadian cities coast to coast. Two of the aircraft are convertible to passenger service and used occasionally for short-haul charters. The company has long served the tourist industry with flights to over one hundred holiday destinations and in 1998, it became the preferred service provider for Signature Vacations. In October 1999, with increasing changes in the airline industry, Royal made the transition from dedicated charter airline to scheduled domestic carrier offering flights at reduced rates during peak times. These flights serve Toronto, Montreal, Ottawa, Winnipeg, Halifax, and Vancouver. In April 2000, the company was designated as a carrier for international flights to Paris and London during peak seasons. With the domestic air picture in turmoil in August 2000 due to a threatened walkout by Air Canada pilots, Royal announced plans to double its domestic service starting September 11th. Their one-way fares will be priced 50-75% lower than Air Canada's. Quarterly results to April 30, 2000 show a modest decline in revenues as the company cut unprofitable runs from its schedule. It also sold off its tow Lockheed 1011s and jettisoned its Royal LeClub hotel management division which no longer fit in with the company's plans. These cuts reduced the loss per share from $0.73 for fiscal 1999 to $0.12 in 2000. The company also improved its financial position, paying down $7.5 million in debt and maintaining a cash balance of $10.8 million. The improved financial picture and the company's aggressive response to the threatened Air Canada strike sent stock soaring in late August 2000. Shares Outstanding: 14,025,000
Address: Phone: 514-828-8965 This page last updated: August 27, 2000 |
Stock Symbol: ROY (TSE) News: Forums: |