BOEING SILENT ON 787 PROFIT PREDICTIONS
Boeing says it needs at least three more years to predict future profit margins on its troubled 787 airliner programme. Chief financial officer James Bell told stock markets that 787s will eventually boast profit margins matching the airframer's existing twin-aisles, but says it is still too early to forecast the point at which individual 787s become profitable, as Boeing will not know manufacturing cost trends until the 787 reaches full-rate production of 10 a month in 2013.
BOMBARIDER LOSES ALTITUDE IN FIRST HALF
Revenue fell nearly 16% to $3.8 billion in the first half to 31 July for Bombardier Aerospace, dragging operating profit for the division down by 32% to $180 million. During the second quarter, commercial and business jet deliveries nearly halved to 42 aircraft, while net orders fell to 29, from 38. For the full year, Bombardier expects to deliver around 15% and 20% fewer business and commercial aircraft, respectively.
SAFRAN SAYS NON TO ZODIAC RUMOURS
Following French press reports of renewed interest in a merger, French aerospace industry group Safran insists it is not preparing a bid for aircraft control systems and cabin interiors maker Zodiac, although it says it "remains convinced of the industrial and strategic logic of bringing together the activities of both groups, for all stakeholders involved". Zodiac rejected a Safran approach in July.
ISRAELI FIRMS FUMING AT EXPORT CONTROL
Israeli aerospace and defence companies are considering a supreme court appeal against new defence ministry regulations that seek to control "wild" competition between companies by having ministry officials decide which firms may be allowed to bid for specific work in foreign markets. The defence ministry says extremely competitive behaviour was damaging Israel's overall defence exports position, but an industry source says the "stupid" regulation will "cause us big losses. The current situation, that sometimes creates wild competition, is better than any such control."
ATLANTIS RISES ON REVENUE SURGE
Toronto-based military and civil aviation training integrator Atlantis Systems cut half year losses to C$711 million ($671 million), from C$2.6 billion for the six months to 30 June 2009, as revenue surged by two-thirds to C$9.14 billion, due primarily to new programmes awarded in late 2009 and the beginning of 2010.
CONTINENTAL-UNITED MERGER 'REGRETTABLE'
US Congressman James Oberstar has called Justice Department approval of Continental-United merger "regrettable", and believes the transportation department should have broader authority in endorsing airline mergers: "There must be a consideration of whether a merger will inevitably trigger others, ultimately reducing the industry to a few large carriers...unwilling to compete seriously in markets dominated by one of the others."
INDIA'S KINGFISHER TO RAISE ADDITIONAL CAPITAL
Subject to shareholder approval, Indian carrier Kingfisher Airlines is to raise its authorised equity share capital by more than 80% to Rs16.5 billion ($353 million). Kingfisher says it will "immediately seek" to raise up to $250 million through global depositary receipts and another Rs5 billion via a domestic offering.
Source: Flight International
