MacroAsia income jumps 41% to P352 million in first nine months

MANILA, Philippines - MacroAsia Corp., the aviation services arm of the Lucio Tan Group of Companies, posted a net income of P351.95 million in the first nine months of the year, up 41.4 percent from the previous level of P248.8 million, on higher contributions from its affiliates.

The company’s share in the net income of its associates rose 19 percent due to higher revenues of Lufthansa Technik Philippines (LTP), particularly from aircraft overhaul services rendered to both local and foreign airline customers.

Approximately 52 percent of LTP’s earnings came from foreign airline clients as the company continued to attract more foreign customers during the period.

LTP provides aircraft maintenance, repair and overhaul services from its facility in NAIA to Philippine Airlines, Lufthansa Airlines, Singapore Airlines, Cathay Pacific Airways and other international airlines that fly to Manila.

It also provides technical ground handling services to various international clients.

Consolidated revenues amounted to P839.04 million, 10.9 percent higher than the P756.5 million registered the previous year.

MacroAsia’s inflight catering revenues went up 14 percent to P524.86 million due to higher number of meals served during the third quarter, while ground handling services continue to show competitiveness by posting a 13 percent hike in revenues to P167 million as more airline clients were serviced in 2009.

Revenue from rental and administrative fees remained at the same level because lease rental is being accounted for on a straight line basis over the lease term, in compliance with Philippine Accounting Standards (PAS) 17.

Charter flight revenues recovered from last year’s low sales, rising 11 percent to P10 million, due mainly to the fact that the helicopters had to undergo scheduled repairs and maintenance in 2008.

Interest income went up 36 percent due to higher yields on placements during the year.

Due to aggressive cost-cutting strategies implemented by the group, selling and general and administrative expenses went down four percent.