ILFC mulls options as Debt market hits parent
Leasing The world's largest aircraft lessor, International Lease Finance, is considering some form of separation from its parent, American International Group, after the insurer increased its loss estimates from insuring financial instruments to $5 billion from $1 billion. Standard & Poor's recently revised its rating outlook on ILFC to negative from stable and Fitch Ratings placed it on rating watch negative. S&P says ILFC's outlook change does not reflect credit problems at the lessor itself. ILFC chief executive Steven Udvar-Hazy told Flight sister publication Commercial Aviation Online that options include purchasing aircraft portfolios and/or other lessors: "The status quo is perhaps not the optimal situation for us."
Airbus site acquisition to boost GKN
Manufacturing GKN expects to close its acquisition of Airbus's Filton, UK manufacturing site by mid-year, as well as conclude agreements for "significant work content" on the airframer's upcoming A350XWB. Chief executive Sir Kevin Smith said the Filton acquisition - which comes as part of Airbus parent EADS's "Power 8" restructuring plan - would significantly strengthen the engineering company's aerospace business, which accounts for one-fifth of group sales. Aerospace sales in 2007 were up year-on-year 18% to £820 million ($1.63 billion) operating profit was down 23% to £73 million.
Key markets all gain at ST Aero
Maintenance Singapore Technologies Aerospace posted a 6% increase in net profit for 2007 to S$270.5 million ($193 million) as revenue rose 10% to S$1.84 billion with increases in Asia, the USA and Europe. Engine overhaul sales were boosted by the acquisition of ST Aero Solutions Europe, formerly SAS Component Group. Maintenance sales were comparable to 2006 despite the closing of loss-making UK operation Bournemouth Aviation Services.
Ideal merger transaction still eludes Delta
Airlines Top executives at Delta Air Lines told employees there would be no merger with Northwest Airlines unless the combined carrier was called Delta and headquartered in Atlanta. Chief executive Richard Anderson and president and chief financial officer Ed Bastian said the Atlanta-based carrier has yet to "arrive at a potential transaction that meets all of our principles".
Operating profit soars at Lufthansa
Results Germany's Lufthansa has increased its full-year operating profit 63% compared with 2006 to €1.38 billion ($2.05 billion), on a 13% rise in revenues to €22.4 billion. Net profit for the company doubled to €1.66 billion. Full results will be released on 12 March.
AAR buys Miami heavy maintenance specialist
Acquisition US maintenance, repair and overhaul provider AAR is to buy Miami-based Avborne Heavy Maintenance, which supports Airbus and Boeing, and Delta's MD-80/90 fleet, from a 21,000m2 (226,000ft2) hangar at Miami International Airport. AAR has MRO bases in Indianapolis, Oklahoma City and Hot Springs, Arkansas.
2008 fuel rise to dwarf 2007 profit: US Airways
COSTS Phoenix-based US Airways says higher fuel prices could add about $800 million to its expenses this year - well above its $440 million 2007 profit. The airline earlier forecast a first-quarter loss, following a $79 million loss in the fourth quarter of 2007, and is introducing a $25 charge for second checked bags.
Source: Flight International
