The good, the bad and the ugly: the shape of things to ... - AviTrader
The good, the bad and the ugly: the shape of things to ... - AviTrader
The good, the bad and the ugly: the shape of things to ... - AviTrader
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News in Brief<br />
SELECTED FINANCIAL NEWS<br />
Avia Solutions Group AB sold Es<strong>to</strong>nian charter operations<br />
Avia Solutions Group AB transferred its entire controlling package <strong>of</strong> shares (95.5%) in Small Planet Airlines<br />
AS (Es<strong>to</strong>nia) <strong>to</strong> Brova Air OU. Following <strong>the</strong> transaction <strong>the</strong> name <strong>of</strong> <strong>the</strong> company will be changed <strong>to</strong> North<br />
Wind Airlines AS. According <strong>to</strong> Linas Dovydenas, CEO <strong>of</strong> Avia Solutions Group, <strong>the</strong> company is focused on<br />
becoming one <strong>of</strong> <strong>the</strong> ten largest charter flight providers in Europe; <strong>the</strong>refore Small Planet Airlines, operating<br />
<strong>of</strong>fices in Lithuania, Italy, Great Britain, France <strong>and</strong> Pol<strong>and</strong> is currently increasing its capabilities in <strong>the</strong>se particular<br />
markets. <strong>The</strong> latter is expected <strong>to</strong> become <strong>the</strong> largest Small Planet Airlines served market next year.<br />
AAR completes acquisition <strong>of</strong> Telair International <strong>and</strong> Nordisk Aviation<br />
AAR CORP. has completed <strong>the</strong> acquisition <strong>of</strong> Telair International GmbH (Telair) <strong>and</strong> Nordisk Aviation Products,<br />
AS (Nordisk) from Teleflex Incorporated, which <strong>the</strong> Company announced on Oc<strong>to</strong>ber 21, 2011. “This acquisition<br />
significantly adds <strong>to</strong> AAR’s commercial manufacturing business <strong>and</strong> elevates our position as a tier-1<br />
provider <strong>to</strong> <strong>the</strong> global aerospace market,” said David P. S<strong>to</strong>rch , Chairman <strong>and</strong> Chief Executive Officer <strong>of</strong> AAR<br />
CORP. “We will work closely with <strong>the</strong> teams at Telair <strong>and</strong> Nordisk <strong>to</strong> ensure a smooth transition as we support<br />
our exp<strong>and</strong>ing cus<strong>to</strong>mer base <strong>and</strong> capitalize on new commercial aircraft build cycles.”<br />
<strong>The</strong> businesses will operate as part <strong>of</strong> AAR’s Structures <strong>and</strong> Systems segment. <strong>The</strong> combination <strong>of</strong> Telair <strong>and</strong><br />
AAR Cargo Systems creates a formidable market leader in <strong>the</strong> design, production <strong>and</strong> servicing <strong>of</strong> aircraft<br />
cargo systems for both commercial <strong>and</strong> military platforms.<br />
Bombardier reports increased net income for 3rd quarter<br />
Bombardier reported its financial results for <strong>the</strong> third quarter ended Oc<strong>to</strong>ber 31, 2011. Revenues increased<br />
<strong>to</strong> $4.6bn, compared <strong>to</strong> $4bn last fiscal year. Earnings before financing income, financing expense <strong>and</strong> income<br />
taxes (EBIT) <strong>to</strong>taled $301m, compared <strong>to</strong> $250m last fiscal year, while <strong>the</strong> EBIT margin reached 6.5%,<br />
compared <strong>to</strong> 6.3% last year. Net income amounted <strong>to</strong> $192m for <strong>the</strong> third quarter ended Oc<strong>to</strong>ber 31, 2011,<br />
compared <strong>to</strong> $147m for <strong>the</strong> same period last fiscal year. Free cash flow (cash flows from operating activities<br />
less net additions <strong>to</strong> property, plant <strong>and</strong> equipment <strong>and</strong> intangible assets) usage <strong>to</strong>taled $346m for <strong>the</strong> third<br />
quarter, compared <strong>to</strong> a usage <strong>of</strong> $108m for <strong>the</strong> same period last fiscal year. <strong>The</strong> cash position amounted<br />
<strong>to</strong> $2.7bn as at Oc<strong>to</strong>ber 31, 2011, a level similar <strong>to</strong> last year, compared <strong>to</strong> $4.2bn as at January 31, 2011.<br />
<strong>The</strong> overall backlog s<strong>to</strong>od at a strong $55.3bn as at Oc<strong>to</strong>ber 31, 2011, compared <strong>to</strong> $52.7bn as at January<br />
31, 2011<br />
Israel Aerospace Industries’ sales reach $817m for Q3 2011<br />
IAI’s sales reached $817m in <strong>the</strong> 3rd quarter <strong>of</strong> 2011, a growth <strong>of</strong> 18% compared with <strong>the</strong> same quarter in<br />
2010. Back orders reached $9bn, at <strong>the</strong> same level as <strong>the</strong> preceding quarters. 83% <strong>of</strong> <strong>the</strong> back orders are<br />
earmarked for export. IAI reported a $59m pr<strong>of</strong>it from ordinary acivities <strong>and</strong> net pr<strong>of</strong>it <strong>of</strong> $3m compared <strong>to</strong><br />
$25m in 2010.<br />
Finmeccanica heads for loss<br />
Finmeccanica revised its earnings forecast downwards for 2011, predicting pre-tax losses <strong>of</strong> €200m,<br />
<strong>and</strong> said it would sell <strong>of</strong>f close <strong>to</strong> €1bn in assets with a view <strong>to</strong> cutting net debt <strong>of</strong> €4.7bn. Shares in<br />
<strong>the</strong> company plummeted 20% on <strong>the</strong> news <strong>and</strong> are down 84% since <strong>the</strong>ir 2007 peak. <strong>The</strong> unpr<strong>of</strong>itable<br />
aeronautics division, Alenia, posted a nine-month charge <strong>of</strong> €753m over problems relating <strong>to</strong> its contract<br />
with Boeing <strong>to</strong> supply components for <strong>the</strong> 787-8.<br />
SELECTED TRANSACTIONS<br />
• Avia Solutions Group, a group <strong>of</strong> business aviation companies, <strong>to</strong>ge<strong>the</strong>r with its<br />
subsidiary FL Technics, is <strong>to</strong> open its first representative <strong>of</strong>fice in Kuala Lumpur<br />
by <strong>the</strong> end <strong>of</strong> this year, <strong>to</strong> jointly cater for <strong>the</strong> rapidly developing Asia-Pacific region.<br />
• Volvo is <strong>to</strong> sell its aircraft engine component manufacturing business Volvo<br />
Aero after incoming chief executive Ol<strong>of</strong> Persson made it clear that <strong>the</strong> unit is not<br />
core <strong>to</strong> <strong>the</strong> company. Volvo Aero’s sales accounted for just over 1% <strong>of</strong> <strong>to</strong>tal group<br />
sales in <strong>the</strong> third quarter; its revenues fell by 22% in <strong>the</strong> same period <strong>to</strong> SEK1.4bn<br />
($206m), while operating income decreased by 55% <strong>to</strong> SEK102m. MTU was cited<br />
as ‘<strong>the</strong> most likely buyer’.<br />
• MTU Aero Engines acquired 75% share in <strong>the</strong> Dallas, Texas-based facility for-<br />
merly known as Retan Aerospace, which will now be known as MTU Maintenance<br />
Dallas Inc. MTU Maintenance Dallas is an FAA <strong>and</strong> EASA licensed Part 145 repair<br />
station that specializes in engine on-wing maintenance <strong>and</strong> repair as well as airframe<br />
A, B <strong>and</strong> C checks. <strong>The</strong> large portfolio <strong>of</strong> engine capabilities includes <strong>the</strong> CF34,<br />
CFM56, V2500, CF6, GE90, JT8D, PW2000, PW4000 <strong>and</strong> RB211.<br />
• MTU Aero Engines opened a new sales <strong>of</strong>fice in Seoul in South Korea on November<br />
18th. <strong>The</strong> MTU Aero Engines Seoul Representative Office is managed by<br />
Kyoo Joo Chae.<br />
21<br />
Yakutia Airlines signed maintenance<br />
contracts with Turkish Technic for B737-800<br />
Turkish Technic signed a C Check maintenance service<br />
agreement with YAKUTIA AIRLINES, which will cover one<br />
base maintenance C check on a Boeing 737-800 <strong>and</strong> a<br />
painting service agreement, which covers one B737-800<br />
tail painting activity. Maintenance works will be carried<br />
out during November & December 2011.<br />
Lufthansa Technik AERO Alzey <strong>to</strong> provide<br />
PW150A spare engine support for Air<br />
Berlin<br />
Air Berlin <strong>and</strong> Lufthansa Technik AERO Alzey (LTAA) have<br />
signed a multi-year Spare Engine Pool Agreement <strong>to</strong><br />
support Air Berlin’s regional fleet <strong>of</strong> PW150A powered<br />
Dash8-Q400 aircraft operated by Luftfahrtgesellschaft<br />
Walter (LGW). As per <strong>the</strong> terms <strong>of</strong> <strong>the</strong> agreement, LTAA<br />
will provide spare engines for planned <strong>and</strong> unplanned<br />
engine removals.<br />
Flying Colours confirms first modification<br />
under new Blackhawk agreement<br />
Flying Colours, <strong>the</strong> Peterborough-Canada based global<br />
aviation service company, announced its first turboprop<br />
Blackhawk modification project. January 2012 will see<br />
<strong>the</strong> arrival <strong>of</strong> a privately owned King Air C90 at <strong>the</strong> Peterborough<br />
facilities where it will undergo a full XP 135 engine<br />
conversion. <strong>The</strong> scope <strong>of</strong> <strong>the</strong> work will also feature<br />
additional routine maintenance inspections along with<br />
interior modifications.<br />
Spare Solution Support India signs<br />
component maintenance agreement with<br />
Turkish Technic<br />
Spare Solution Support India (SSSI) signed component<br />
maintenance agreements with Turkish Technic for <strong>the</strong><br />
repair <strong>of</strong> Airbus A320 family components. Component<br />
maintenances will be carried out at Turkish Technic’s<br />
facilities in Istanbul, servicing more than 10.000<br />
different part numbers.<br />
Aviointeriors delivers TRANSAERO’s first<br />
B777<br />
Aviointeriors delivered TRANSAERO’s 1st B777 equipped<br />
with <strong>the</strong>ir glamourous Imperial First Class, Business,<br />
Premium Economy <strong>and</strong> Economy class seats, after only<br />
seven months. TRANSAERO’s excecutive direc<strong>to</strong>r, Alex<br />
<strong>AviTrader</strong> MRO - December 2011