AEROVIRONMENT QUOTES RAVEN PROSPECTS
UNMANNED SYSTEMS Aerovironment expects full-year revenue growth of 18-22% for its year to end-April 2010 on the back of deliveries of its newly-introduced digital Raven unmanned system. But during the second quarter to end-October, sales of unmanned aerial vehicles, which account for some 85% of turnover, were down by 22% at $43.7 million, leaving overall pre-tax profits down by 72% at $3.4 million. Six-month UAV sales were down nearly a quarter to $77 million and the company fell to a pre-tax loss of nearly $2 million, compared to a $20.4 million profit for the same period last year.
CIT SET TO EMERGE FROM CHAPTER 11
LEASING A US Bankruptcy Court has approved the prepackaged reorganisation plan of financial group CIT, parent of aircraft lessor CIT Aerospace, paving the way for its expected emergence from Chapter 11 bankruptcy last week. CIT Aerospace has 332 aircraft under various leases and, as of 30 September, had 107 aircraft on order but fewer than half a dozen scheduled for delivery next year, according to Flightglobal's ACAS database, excluding any deferrals.
TOUGH WINTER PUTS STOP ON AXIS AIRWAYS
LIQUIDATION French carrier Axis Airways has gone into liquidation after failing to overcome financial problems. The airline, based in Marseille, had operated a fleet comprising two Boeing 737-800s and one 737-400. In a statement the carrier said it was "too young and fragile" to cope with the problems of weak traffic and a "difficult winter" for French airlines. The company was put into receivership on 16 November. The charter carrier had been rescued from the brink of collapse in 2006, and a reshaped, trimmed-down airline emerged.
INDIAN OUTSOURCING MOVE FOR AIRBUS
INFORMATION TECHNOLOGY Indian IT and software services firm Mahindra Satyam has bagged a $20-million outsourcing contract from Airbus. This three-year contract would focus on technology maintenance including quality management. Last month, it bagged a potential $300 million, five-year IT outsourcing contract from Saab to develop its Indian operations.
AIR CHINA INCREASES STAKE IN AIR MACAU
AIRLINES Air China has increased its 51% stake in subsidiary Air Macau to almost 81% following a capital injection into the loss-making airline; other shareholders chose not to join the capital raising and saw their stakes diluted.
ALLCO SALE 'ON TRACK' FOLLOWING RULING
LEASING Hong Kong Aviation Company expects by year-end to close its acquisition from receivership of the Allco aircraft leasing business. This follows a favourable Australian court ruling to allow a buyer to continue managing aircraft in the Allco portfolio, barring a unanimous agreement by lenders - rather than the majority vote sought by some lenders - to change managers. Sydney-based parent company Allco Finance Group called in receivers towards the end of last year. Market sources have indicated Allco's 68 aircraft-portfolio could fetch up to $105 million.
TIGER TALE MAY OPEN MARKET CHAPTER
PUBLIC OFFERING Singapore-based low-cost airline group Tiger Airways is considering an initial public offering. The carrier posted a pre-tax loss of S$47.7 million ($34.3 million) for the fiscal year ending 31 March, as it was dragged down by losses in Australia.
Source: Flight International
