BRAZIL TO LIFT FOREIGN OWNERSHIP CAP
Brazil may, by year-end, lift its 20% cap on foreign airline ownership to 49%. A source at the defence ministry, which is politically responsible for civil aviation in Brazil, says no political resistance is expected to the proposal, which would allow "Brazilian airlines to get better access to international capital while not giving up local control over a strategic sector". Recent foreign investments in Brazilian aviation include US investment fund MatlinPatterson's acquisition of VarigLog and Varig, US carrier SkyWest buying a stake in TRIP Linhas Aereas and JetBlue Airways founder David Neeleman's involvement in start-up regional operator Azul.
ISRAEL AEROSPACE MAY BUILD F-35 FUSELAGE PARTS
Lockheed Martin has made what sources are describing as a "very general" offer to have Israel Aerospace Industries manufacture fuselage parts for its F-35 Joint Strike Fighter as part of its effort to encourage Israel to buy the aircraft as early as 2014. The Israeli air force wants up to 75 F-35s, but the $135 million unit price for aircraft in its configuration has put the timing of the acquisition into question.
ROCKWELL COLLINS COMPLETES DATAPATH BUYOUT
Rockwell Collins has completed its $350 million cash acquisition of satellite-based communication networks builder DataPath, including its wholly owned SWE-DISH Satellite Solutions subsidiary. DataPath, which reported 2008 revenue of $243 million, will operate under the Rockwell Collins brand.
CHINA EASTERN SELLING STAKE IN YUNNAN BRANCH
Financially troubled carrier China Eastern Airlines is reducing its stake in its Yunnan branch by bringing in the Yunnan government as a 35% equity investor in a joint-venture carrier in the south-west province. Other provincial governments, such as Hainan's, have recently intervened to prop up local carriers seen as important to the local economy. China Eastern made a net loss of 15.3 billion yuan ($2.2 billion) last year and has been bailed out by Beijing.
SPECIALIST ENGINEERING FIRM CHANGES HANDS
Littlejohn & Co is to sell specialist engineering and IT services company Wyle Holdings to Court Square Capital Partners, subject to consent of Wyle's first lien lenders and regulatory approvals. Wyle, which was bought by Littlejohn in 2003, employs 3,800 people and has revenue of $800 million, provides test and evaluation services for the aerospace, defence and nuclear power industries and biomedical and engineering services to NASA.
SPACEX FALCON 1 LAUNCH BACK ON
Hawthorne, California-based SpaceX has rescheduled for 13 or 14 June the launch of its Falcon 1 rocket from Kwajalein Atoll. The launch was postponed last month because of a potential compatibility issue between the rocket and its Malaysian Razaksat land imaging satellite payload, but SpaceX says this has been resolved by "a simple vibration isolation system".
SAFRAN ALERTS BRUSSELS TO SCANNER UNIT PLANS
France's Safran Group has formally notified the European Commission of its $580 million acquisition of an 81% share of General Electric's Homeland Protection division, which makes tomography-based airport baggage-scanning equipment.
Source: Flight International
