AIRBUS STRETCHES COST CUTTING SCHEME TO 2012
Airbus presented details of its enhanced and expanded Power8+ cost-reduction programme to its European Work Council, stating that it will save €650 million ($920 million) in 2012, on top of the €2.1 billion savings expected by 2010 under its original Power8 plan. The new scheme, initially disclosed earlier this year, extends Power8 by two years and looks to improve efficiency and cut costs by "further internationalisation" of manufacturing and engineering work, but it will not cut the workforce. Chief executive Tom Enders says the plan will "access talent on a world-wide basis and...support employment and core competences in Europe".
OXFORD AVIATION BUYS AUSTRALIAN FLIGHT SCHOOL
Oxford Aviation Academy has acquired Australian ab initio pilot-training organisation General Flying Services, which operates from Melbourne's Moorabbin and Point Cook airports and has strong links with Qantas. Oxford has accumulated 10 training centres in Europe, Asia and the USA and has recently taken over Irish-based pilot supplier Parc Aviation.
ACG INVESTMENT BOOSTS MAGELLAN
Aftermarket supplier and engine lessor Magellan Group has been bolstered by an unspecified capital investment from ACG Investment Capital Partners, a joint venture of the aircraft lessor Aviation Capital Group and Fortis bank's FB Transportation Capital unit. Aviation Capital owns 234 aircraft and has 155 on order.
HONEYWELL CUTS CZECH MAINTENANCE DEAL
Honeywell and Czech repair firm LOM Praha have reached an agreement to provide overhaul, maintenance, logistics support and pilot training services for Mil Mi-8/Mi-17 helicopters. More than 12,000 Mi-8/Mi-17 turboshaft multi-mission helicopters have been delivered throughout the world.
PRIVATE EQUITY TAKES STAKE IN JORDAN AVIATION
Riyadh-based private equity company Swicorp has taken a undisclosed "strategic" stake in Amman-based Jordan Aviation, established in 2000 to specialise in charter and wet-lease operations. "The Middle East aviation market continues to be the fastest-growing and most attractive market globally," says Swicorp's Nabil Triki.
FORMER BANKER JOINS XCOR
A former banker has joined Mojave, California-based rocket engine developer XCOR as chief operating officer. Andrew Nelson began his career as an engineer with Pan Am World Services at Cape Canaveral but later worked for Morgan Stanley, Lehman Brothers and Booz Allen Hamilton. XCOR aims to fly its Lynx horizontal take-off and landing sub-orbital vehicle in 2010.
UK SELLS LAST QINETIQ STAKE
The UK Ministry of Defence has completed its controversial privatisation of Qinetiq, the former Defence Evaluation and Research Agency, with the placing of its remaining 18.9% stake at 206p ($3.62) per share, valuing the company at £1.36 billion.The MoD sold 37.5% of the business to Carlyle for £155 million in 2003 and made 20% available to management and employees as an incentive scheme. The top 10 managers invested £500,000 and received shares worth £107 million when the company was floated in 2006. A 2007 National Audit Office report criticised the level of management incentive as excessive.
Source: Flight International
