CONTINENTAL AXES 1,700 JOBS
COST CUTTING Continental Airlines is to axe 1,700 positions as part of a cost-cutting effort aimed at saving $100 million, after itturned in a second-quarter net loss of $213 million. The US carriersays the elimination of the positions, including management and clerical, comes on top of itcutting 500 reservation agents and giving special leave of absence for 700 cabin crew. The carrier's total revenue for the second quarter was down by nearly 23% to $3.1 billion.
RUSSIA SCHEDULES IMPORT DUTY AMNESTY
TAXATION Russian authorities are poised to further ease restrictions on the import of Western aircraft, in a move designed to support domestic airlines economically. Government-endorsed proposals envisage a grace period of up to six months for payment of customs duty on imported aircraft, engines and their components. Under the current legislation, imported aircraft with 50- to 300-seat capacity are subject to a customs duty of 20%.
PANTA RIDES TO AVCORP'S RESCUE
INVESTMENT Dutch investment firm Panta Holdings is set to acquire 33% of Canadian aerostructures company Avcorp through a share placement with proceeds of C$2.4 million ($2.2 million). Additionally, Avcorp will undertake a rights issue through which shareholders can subscribe for 2.5 additional shares for each share held. As Panta has also agreed to purchase any shares not otherwise assigned, its holding could reach 81.8%.
AVIALL TO DISTRIBUTE P&WC PARTS
DISTRIBUTION Pratt & Whitney Canada has appointed Boeing subsidiary Aviall to distribute original equipment manufacturerspare parts to operators of the PW901 auxiliary power unitsthat equipBoeing 747-400s. The 10-year deal becomes effective in the fourth quarter. P&WCintroduced the 900 series APU in 1989.
VIRGIN BLUE CHIEF DEPARTS AMID PROJECTED LOSS
MANAGEMENT Australia's Virgin Blue says that its chief executive Brett Godfrey will quit in 2010. The airline expects to report its first annual loss, totalling A$160-165 million ($132-136 million), for the year to 30 June 2009. In a bid to raise A$231.4 million in fresh equity, it plans to issue 105.2 million shares in an institutional placement and make a one-for-one offer to existing shareholders.
BATTERY FIRM POWERS TRANSDIGM EXPANSION
ACQUISITION Cleveland-based TransDigm Group has acquired the stock of Acme Aerospace from a subsidiary of Actuant for about$40 million in cash. Acme's annual revenue is estimated by TransDigm at roughly$18 million, most of it deriving from the Boeing 777 programme. It produces fibrous nickel cadmiummain ship batteries, battery chargers, battery back-up systems and power conversion equipment at its Tempe, Arizona facility.
NEW UK INITIATIVE TARGETS GREEN ENGINES
RESEARCH Rolls-Royce is to lead a £40 million ($66 million) programme to strengthen the UK aeroengine industry's supply chain and accelerate development of low-carbon engine technology. Small and medium-sized enterprisesand universities, as well as manufacturers, will participate in Samulet(Strategic Affordable Manufacturing in the UK with Leading Environmental Technology), to be funded by the UK's Technology Strategy Board (£28.5 million) and Engineering and Physical Sciences Research Council (£11.5 million).
Source: Flight International
