FRA Close to Buying Australia's NJS Group

Asian Aerospace 2000 -- Cobham plc flight operations subsidiary FR Aviation (FRA) is closing its buy of Australia's National Jet Systems Group for $39.2 million. NJS unit Surveillance Australia (SA) flies maritime surveillance missions under the Australian Customs Service's Coastwatch program.

"This is Cobham's first acquisition in Australia and it opens up a number of exciting opportunities for the group," said Cobham CEO Gordon Page. "This geographical area is seen as strategically important to us and we look forward to the development of the NJS Group in both the commercial and defense markets with confidence."

The acquisition "fits Cobham's stated strategy of acquiring businesses operating in niche aviation and defense markets," an FRA spokesman concurred. "NJS will provide a major expansion of the Group's flight operations in commercial aerospace and maritime surveillance which compliment FRA's existing expertise and capabilities.

"The Directors of Cobham expect the acquisition to be earnings enhancing immediately," he said. SA currently operates on government contract for 15,000 flying hours per year a fleet of 13 aircraft (plus two on order), including three Dash 8-200MPAs, three Reims F406s, six PBN BN-2B Islanders and one Shrike Commander .

NJS Group operates a mixed fleet of 19 BAe 146/ RJ 70s and Dash 8s on behalf of Qantas, as well as dedicated 146 freighters on overnight night services for Australian air Express. NJS also flies special mission Learjets as fleet support electronic defense trainers for the Australian defense forces, and is involved in corporate and charter operations. The company's engineering services are mainly based at Adelaide, supporting both in-house and third-party aircraft.

By Mike Vines