Boeing Commercial Airplanes (BCA) has so far shed about 40 percent of the 4,500 jobs it plans to cut this year, BCA president and CEO Scott Carson told attendees of the company’s annual investors’ conference on May 21.
Economy of the United States
On Thursday, the board of the U.S. Export-Import Bank (Ex-Im Bank) authorized a $500 million direct-loan facility to provide the funds to assist Textron in financing exports from subsidiaries Cessna Aircraft and Bell Helicopter. The available capital will enable Textron to continue to provide financing to international customers that take delivery of new Cessna and Bell aircraft by December next year.
Jet Support Services (JSSI) has named Lou Seno its new president. He has three decades of aircraft financing experience and previously was a senior manager at Boeing Capital’s and GE Capital Solutions’ business aviation units.
Indices used by airframe manufacturers to adjust the prices of airplanes on order have proved unhelpful lately to the OEMs, as the global recession suppresses commodity and retail prices along with wages. In Boeing’s case, margins dropped 7 points, to 4.9 percent in the first quarter, largely due to the unfavorable movement within the economic indices it uses to set increases in prices for its airplanes, according to Boeing CFO James Bell.
Delta Air Lines will ground at least 30 Delta Connection Bombardier CRJs this year as it moves to execute “synergies” associated with its merger with Northwest Airlines.
Revenues at Berkshire Hathaway’s services group–which includes fractional provider NetJets and flight-training provider FlightSafety International–were $8.435 billion last year, an increase of $643 million over 2007. While FlightSafety helped contribute to increased earnings in the division, lower earnings at NetJets offset those increases.
Demonstrating a degree of public humility many feel has been all too absent among the bankers collectively responsible for the global financial crisis, Boeing Commercial Airplanes CEO Scott Carson offered no further excuses for the delays that have plagued the 787 and 747-8 this month during the J.P. Morgan Aviation and Transportation Conference in New York. “The stumbles we have made have been embarrassing for us,” Carson said.
Hawaii’s Island Air will fly de Havilland Dash 8s between Kahului, Maui, Lihue, Kauai and Hilo as Go!Express under the terms of a tentative code-share deal it signed with Mesa Air Group in late February.
Hawker Beechcraft (HBC) tapped industry veteran Bill Boisture Jr. as its new chairman and CEO. He succeeds Jim Schuster, who announced his pending retirement in November after eight years at the helm of the Wichita-based aircraft manufacturer. Boisture’s high-profile business aviation career includes turns as president of fractional provider NetJets and aircraft manufacturers Gulfstream and Hawker predecessor British Aerospace Corporate Jets.
Revenues at Berkshire Hathaway’s services group–which includes fractional provider NetJets and flight-training provider FlightSafety International–were $8.435 billion last year, an increase of $643 million over 2007. Overall, pre-tax earnings at the Berkshire division last year were relatively unchanged from 2007 at $971 million, according to the company’s financial report issued late last week.