Boeing had to announce a downward adjustment of its fourth-quarter and full-year earnings results yesterday to reflect a reduction in the value of aircraft in its customer financing portfolio and a rise in liabilities tied to an arbitration award. The change resulted in a four-cent-per-share lower result than it reported on January 28 in its Form 10-K filing with the U.S. Securities and Exchange Commission.
Economy of the United States
NBAA is fighting to eliminate from a bill to reform the Troubled Assets Relief Program (TARP) wording that would “require divestment of private aircraft or leases.” TARP was passed by Congress in October to acquire banks’ troubled assets in an effort to unfreeze the credit market. The proposal regarding business airplanes was introduced on Friday by Rep. Barney Frank (D-Mass.), the chairman of the House Financial Services Committee.
Boeing said today that it expects to slash employment at its Commercial Airplanes business by some 4,500 positions this year “as part of an effort to ensure competitiveness and control costs in the face of a weakening global economy.” The cuts lower Boeing Commercial Airplanes’ employment total to roughly 63,500, approximately the level at which it began at the start of last year.
Hawker Beechcraft Services will become the second major business jet OEM service center to leave California when it closes its Van Nuys Airport facility on March 31. Last year, Cessna Aircraft announced that it is closing its Long Beach service center and moving those operations to a new facility in Mesa, Ariz.
Phoenix-based Mesa Air Group reached a settlement with the former controlling shareholder of Aloha Airlines that Mesa hopes will allow it to rename its Go! subsidiary Aloha. Under the deal, Mesa has agreed to pay private-equity firm Yucaipa $2 million in cash, issue shares of Mesa common stock equal to 10 percent of its currently outstanding shares and provide former Aloha Airlines employees certain inter-island travel benefits.
The International Brotherhood of Teamsters is gearing up to ask lawmakers to include in an upcoming economic stimulus bill a moratorium on the use of foreign repair stations by U.S. air carriers, according to the Aeronautical Repair Station Association (ARSA). Such a moratorium, ARSA explained, could mean that “U.S.
Fractional share operator Flight Options has furloughed more than 100 pilots, according to the International Brotherhood of Teamsters Local 1108, which is in contract negotiations with Flight Options. Some mechanics and operational personnel were also laid off, according to Flight Options.
Fractional share operator Flight Options has furloughed more than 100 pilots, according to Mat Slinghoff, president of the International Brotherhood of Teamsters Local 1108, which is in contract negotiations with Flight Options. Some mechanics and operational personnel were also laid off, according to Jay Heublein, Flight Options vice president of sales and marketing.
Rich Schuller has joined Sextant Advisory in Scottsdale, Ariz., where he is focusing on helping clients with business development and maintenance-related consulting. Sextant Advisory’s specialty covers a range of business-related services for aviation companies, including performance improvement, business-development and aircraft maintenance issues.
Former airline executive David Siegel has eschewed big iron in favor of business jets, having been named president and CEO of California-based XOJet, a rapidly growing private aviation company.
Siegel is the former CEO of Gate Gourmet and US Airways and has been a member of XOJet’s board of directors since last year. Earlier in his career, he served in various senior management roles at Continental Airlines and Continental Express.