ENGINES TRUMP FINANCE FOR GE IN 2009
Aero engine maker GE Aviation boosted full-year profits for 2009 by nearly 7% to $3.92 billion despite a 3% decline in revenue, to $18.7 billion, and a fourth quarter that saw revenue fall 8% to $4.75 billion and segment profit drop 18% to $950 million. Aviation finance arm GECAS, which is the world's largest aircraft lessor, was down 4% in revenue and 14% in profit for the year, to $4.7 billion and $1 billion respectively, although fourth quarter profit jumped 16% to $277 million on a 1% revenue gain, to $1.22 billion.
SOUTHWEST FULL-YEAR PROFIT FALLS 45%
Southwest Airlines' full-year net profit fell nearly 45% last year to $99 million, although the carrier turned a fourth-quarter loss in 2008 to record net income of $116 million for the same period in 2009. Operating revenues for the year fell by 6.1% to $10.4 billion.
AIRCELL IN $176 MILLION PRIVATE FINANCING DEAL
Gogo in-flight broadband system provider Aircell has closed a private placement of equity securities totalling $176 million. The proceeds will fund expansion and operating needs. The company has deployed its Gogo in-flight broadband system on 700 commercial aircraft with commitments from a total of nine airlines.
FURTHER DECLINE TO COME IN 2010: EATON
Eaton's aerospace segment posted a 13% decline in operating profit to $245 million for 2009 on sales down 12% at $1.6 billion. During the fourth quarter - characterised by "soft conditions" in the commercial aftermarket and employee severance charges - profit slipped 38% to $47 million on sales down 15% to $381 million. Chief executive Alexander Cutler expects a 3% sales decline in 2010, with US markets losing 1% and others falling by 8%.
EMS TECHNOLOGIES FORMS AVIATION BUSINESS UNIT
Wireless connectivity solutions provider EMS Technologies has created a new aviation division, EMS Aviation, comprising its satcom business, which provides Inmarsat SwiftBroadband systems, and the recently-acquired EMS Formation and EMS Sky Connect, which supply air-to-ground connectivity and Iridium-based tracking and messaging.
UKRAINE TURNS ON INDUSTRY INCENTIVES
Ukraine has moved to revoke land tax and reduce VAT and customs duties for domestic aircraft and engine makers until 2016. Companies will also be able to charge higher depreciation against property and equipment. The government expects the move to cut production costs and support exports, with the volume of output and tax receipts possibly more than doubling over the next three years to $2.4 billion and $225 million respectively.
S&P DOWNGRADES ILFC AMID SALE WORRIES
Ratings agency Standard & Poor's has downgraded International Lease Finance's credit rating to BBB- after concluding its owner, the troubled insurer AIG, will delay selling the aircraft leasing business "for the next several years", adding that the lessor's financial flexibility will be restricted, and borrowing costs might rise.
MIDDLE EAST GROUP SETS UP SWISS SHOP
The Middle East Aerospace Consortium has opened a new office in near Geneva, headed by former Unisys chief financial officer Arno Roy.
Source: Flight International
