While orders notched by European aerospace OEMs and suppliers in the last year have reached record levels, the continued weakness of the U.S. dollar against the euro is eroding profits and putting increased pressure on some companies to move production outside Europe to low-cost and/or dollar-zone countries.
News and issues concerning aerospace companies, including formations, acquisitions, mergers and financials; and announcements of significant aircraft sales, delivery statistics and personnel appointments.
Get ready for a bumpy ride. The sputtering global economy is sending the pre-owned aircraft market into a steeper dive and is likely to slow new aircraft sales and new aircraft development programs, according to leading industry analysts and observers. Prices for pre-owned business aircraft have been trending down for the last five quarters and the number of new jet buyers looking to unload their delivery positions is increasing.
Despite the financial shockwaves emanating from Wall Street, engine and avionics manufacturer Honeywell Aerospace sees a strong appetite for business airplanes in the next 10 years based on results of its newly released 17th annual market forecast.
As if there hasn’t already been enough bad financial news, reports from UBS Investment Research and JPMorgan indicate that pre-owned business jet inventories continued to increase in August, leading both firms to warn that deliveries of new aircraft could fall as a result.
As oil soared to nearly $147 a barrel this summer, U.S. airlines began tacking fuel surcharges onto the prices of their tickets. The commercial carriers also began charging for previously free items, such as a second (and in some cases, a first) checked bag, blankets and drinks.
Airbus officially opened its first final assembly line outside Europe today in front of official dignitaries and 600 guests gathered for the inauguration of the new A320 facility in Tianjin, China.
Boeing’s delays in delivering its much heralded 787 appears to have breathed new life into the near moribund 767 program, as the 787’s launch customer, Japan’s All Nippon Airways (ANA), has drawn up a contingency plan that involves the delivery and introduction of nine Boeing 767-300ERs into its fleet to cover interim needs for lift.
DAE Capital, the aircraft leasing and financial business arm of Dubai Aerospace Enterprise (DAE), has signed a deal with Aviation Partners Boeing (APB) to buy 50 shipsets of Blended Winglets for its new 737-700/800 Next Generation aircraft.
PMA parts manufacturer Heico reported it is on track to meet its 2008 earnings-per-share guidance. The Hollywood, Fla. company’s net income increased 18 percent, to a record $12.827 million, or 47 cents per diluted share, for the third quarter of Fiscal Year 2008, up from $10.914 million, or 40 cents per diluted share, for the same period last year.
Britain’s GKN has agreed to buy the wing component and assemblies manufacturing unit at Airbus’s Filton, UK plant, the companies announced today.