MTU 'rebuffed' in bid for Volvo Aero
ACQUISITIONS MTU Aero Engines has declined to comment on German press reports that it has been rebuffed in a €1 billion ($1.42 billion) offer for Volvo Aero. Spokesman Eckhard Zanger told Flight International that MTU remains on the lookout for opportunities to expand its business through organic growth or by acquisition. In 2006 MTU made a gross or operating profit of €352.7 million on sales of €2.4 billion Volvo Aero made €37.6 million on sales of €870 million, or 3% of the Volvo Group total, which is dominated by trucks and buses.
Standard Aero buys Cincinnati repair shop
MAINTENANCE Engine maintenance firm Standard Aero has bought Cincinnati, Ohio-based turbine engine component repair facility TSS Aviation for $65 million. TSS, which was established in 1948 and employs 225 people, is a full-service component overhaul facility, providing mid- to large aerospace and industrial gas turbine engine repairs for OEMs and airlines. Standard Aero was acquired from private equity company Carlyle Group by Dubai Aerospace Enterprise in August, in a $1.9 billion deal that also included Landmark Aviation the firms are being merged under the Middle Eastern group's technical subsidiary DAE Engineering. Standard Aero chief executive Paul Soubry says: "Not only does TSS Aviation increase the Standard Aero component repair, it also brings significant new technology and capability to the DAE repair portfolio. We gain extensive new capabilities, along with exceptional quality and an on-time delivery record, all of which make this a tremendous strategic fit."
SAS to sell stake in Spanish ground handlet
DIVESTMENT SAS Group will sell its 55% holding in Spanish ground-handling company Newco Airport Services to Teinver. The latter will hold 100% of the company after the transaction, which will have a SKr 400 million ($62.1 million) positive net effect on cash and debt. Newco is Spain's second-largest handling company, expected to handle 127,000 flights in 2007 at 26 Spanish airports for more than 40 airlines, including SAS. It also provides cargo handling services in Madrid.
Sad day for cash at Jetblue
IN-FLIGHT RETAIL JetBlue Airways is studying various ancillary revenue opportunities that can be supported by its new "cashless cabin" service being offered in partnership with subsidiary LiveTV. From 1 November the low-cost carrier will accept major credit or debit cards for in-flight purchases using handheld devices, and will no longer accept cash on board. LiveTV's secure technology will provide "a quick and hassle-free way to purchase alcoholic beverages and future in-flight offerings on board", says JetBlue. Apart from alcoholic drinks, the exact in-flight offerings being considered have not been revealed, but the carrier's standard 36-channel seat-back live television service will continue to be offered free to passengers.
Goodrich to sell maintenance unit
AIRFRAME REPAIR Australia's Macquarie Bank is to buy Goodrich's airframe heavy maintenance business, Goodrich Aviation Technical Services, for an undisclosed sum. Goodrich says it expects the sale to close in the fourth quarter of this year. Goodrich has more than 1,200 employees at an 88,250m2 (950,000ft2) facility in Everett, Washington. Services include airframe heavy maintenance, aircraft modifications and painting, passenger-to-freighter conversions, engineering and certification, and component repair and overhaul.
Source: Flight International
