STRIKE-STRUCK VOUGHT "TO MAKE 80% OF SHIPMENTS"
Vought Aircraft has pledged to complete in the fourth quarter more than 80% of its scheduled shipments despite a long-running strike at its Nashville, Tennessee plant by International Association of Machinists and Aerospace Workers members, who downed tools in late September. Temporary staff in Nashville are now approaching pre-strike operating performance, says chief executive Elmer Doty. Vought output also has been disrupted since September by the IAM strike at Boeing. That strike is now over, but Boeing's suppliers are still weeks away from resuming normal operations. Third quarter net income was $15.6 million, compared with a $2.1 million loss last time, on revenue up 13% to $477.3 million.
THIRD QUARTER HERALDS RECORD YEAR FOR CPI
CPI Aerostructures is on track for a record year after posting a 67% rise to $892,000 in third quarter net profits on revenue up 29% at $9.43 million. Chief executive Edward Fred says: "As expected, the second half of the year is shaping up to be stronger than the first half of the year." He predicts full-year net income to rise 37% to $2.6 million on sales up by a quarter at about $35 million, and 2009 net income of $3.9-4.3 million on revenue of $42-45 million. New prime contractor customers have helped boost contract awards.
ILFC REPORTS IMPROVED Q3 RESULTS
ILFC, the leasing arm of troubled insurance giant AIG, reported improved financial results for third quarter ended 30 September, with operating income up 44% to $366 million on revenue up 11% to $1.23 billion. During the nine months to end-September it had 22 aircraft returned by bankrupt lessees. ILFC has commitments to purchase 174 new aircraft deliverable from 2008 through 2019. ILFC borrowed $6.5 billion in September - the full amount available under its credit facilities. AIG expects that borrowings and cash flows from operations will permit ILFC to meet its obligations through September 2009.
RUSSIAN CARRIERS FIX JET FUEL PRICES
Aeroflot has agreed on a new, fixed jet fuel pricing formula with a Gazprom-led group of Russian oil companies as part of a government bid to stabilise fuel prices. "The newly agreed jet fuel pricing formula will be an effective instrument enabling Russian airlines, like Aeroflot, to become more flexible when planning fuel expenses and hedging risks connected with price fluctuations," says Aeroflot chief executive Valery Okulov.
ALITALIA LOAN WAS STATE AID: BRUSSELS
European Commission regulators have ruled that the €300 million ($375 million) bridging loan granted to Alitalia in April constitutes state aid and must be paid back by the Italian government. European transport commissioner Antonio Tajani says state aid to Alitalia cannot be considered part of the assets of the new carrier being created by investor group Compagnia Aerea Italiana, and so the carrier's assets must be sold at market prices.
SECOND HALF TO RUN 'LIKE FIRST': BBA
Fixed-base operator and ground services provider BBA Aviation expects second-half performance will be broadly similar to its first half to 30 June, when pre-tax profits fell 23% to £46.7 million ($68.8 million) on sales up 15% at £560 million. Chief executive Simon Pryce says a "flexible cost base" helps BBA perform well "despite the continuing weak market conditions".
Source: Flight International
