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Tuesday, March 2nd, 2021

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Canada’s CAE to buy L3Harris Technologies in US$1.05 billion deal

In a boost to its defense business in the U.S. market, the aviation training specialist CAE Inc (CAE) has agreed to buy L3Harris Technologies (L3Harris). It is expected the deal will augment the development of training systems for remotely piloted aircraft, submarines, fighter and bomber aircraft; the company is currently a major producer of full-flight simulators for both Boeing and Airbus and the deal will double its specialist’s defense business. It is anticipated that revenues will be split roughly 50:50 between defence and civil after the deal closes, as expected, in the second half of 2021.

CAE is the world’s largest civil aviation training company, and the deal will be funded by a private placement of approximately US$550 million from two institutional investors, while one of Canada’s principal pension funds, Caisse de dépôt et placement du Québec (CDPQ), has confirmed it will be investing US$375 million, making it the largest shareholder in the company. Having posted a 50% slump in third-quarter profit, CAE expects the acquisition of L3Harris to add to earnings in the first full year after closing and projected annual cost savings of approximately US$27.57 million to US$35.7 million after the second year. Once the deal has been finalized, the training division of CAE will be based in Tampa, Florida.


Meggitt awarded contract from Boeing to supply cockpit indicators for 737 Max

Meggitt, a leading international company specializing in high performance components and sub-systems for the aerospace, defence and selected energy markets, has signed a long-term agreement with Boeing for the supply of cockpit indicators on the 737 MAX. The contract covers a suite of cockpit indicators across all versions of the aircraft.

This contract expands Meggitt content on the 737 MAX program, which already includes the engine and APU fire detection and suppression systems, electrical power conversion equipment, and elastomeric seals. Deliveries are scheduled to commence in Q2 2022.

Meggitt Chief Executive, Tony Wood, said: “We are delighted to be expanding our relationship with Boeing at this important time as the 737 MAX returns to service and the wider aviation industry starts to look through the challenges of the last year towards a recovering outlook for air traffic globally.”

Olaf Christoph joins SR Technics’ Business Development team

MRO service provider SR Technics has announced that Olaf Christoph has joined its Business Development team. Christoph comes to SR Technics after nearly twenty years as Sales Director for new engines and engine services at GE Aviation, where he handled the accounts of several major airline customers in the European region. Prior to that, he spent a decade in various manufacturing roles, including quality management, production and industrial engineering.

With the addition of Christoph, the Business Development team, headed by Senior Vice President Caroline Vandedrinck, will continue to accelerate growth in the company’s core areas such as engine services and line maintenance thus consolidating its strong position on the MRO market, leveraging opportunities based on the current industry outlook and emphasizing its longstanding commitment to an outstanding customer experience.


Rolls-Royce successfully completes taxiing of its ‘Spirit of Innovation’ aircraft

Rolls-Royce has successfully completed the taxiing of its ‘Spirit of Innovation’ aircraft, the latest milestone on its journey to becoming the world’s fastest all-electric plane.

For the first time, the plane powered along a runway propelled by its powerful 500hp electric powertrain and the latest energy storage technology developed to set world speed records and enable a new generation of urban air mobility concepts.

The taxiing of the plane is a critical test of the integration of the aircraft’s propulsion system, ahead of actual flight-testing. The first flight is planned for the spring and when at full power the combination of electrical powertrain and advanced battery system will power the aircraft to more than 300mph, setting a new world speed record for electric flight.

Minister for Business Paul Scully said: “The taxiing of Rolls-Royce’s ‘Spirit of Innovation’ forms part of an exciting new chapter in aviation as we move towards its first flight in the spring. Set to be the world’s fastest electric plane, this pioneering aircraft highlights the value of close collaboration between industry and government.

“The U.K. is committed to achieving net-zero carbon emissions by 2050. Through government grants for research and development, we’re championing innovation in the aerospace sector to meet this ambitious target as we build back greener from the pandemic.”

The ACCEL program, short for ‘Accelerating the Electrification of Flight’ includes key partners YASA, the electric motor and controller manufacturer, and aviation start-up Electroflight. The ACCEL team have continued to innovate while adhering to the U.K. Government’s social distancing and other health guidelines.


AFG Aviation Ireland completes acquisition of four Airbus A330-200F aircraft

AFG Aviation Ireland, a wholly owned subsidiary of Aircraft Finance Germany GmbH, has completed the acquisition of four Airbus A330-200F freighter aircraft bearing MSN 1688, MSN 1708, MSN 1584, and MSN 1594 from Qatar Airways Group (Qatar) for CMA CGM Air Cargo (France), the new air cargo division of French container logistics and shipping giant CMA CGM S.A. All four aircraft will be operated by Air Belgium on behalf of CMA CGM Air Cargo.

The transaction closed in two phases. The first pair of aircraft were delivered in early February from AFG to CMA CGM and the second pair followed in late February 2021.

Christian Nuehlen, CEO of Aircraft Finance Germany, comments: “Obviously, we are more than pleased with the outcome and that we managed to successfully conclude this transaction amidst a challenging pandemic environment. The air cargo market presents strong potential going forward and these four aircraft will play a vital role in the years to come.”

Jazz Aviation to become sole operator of Air Canada Express flights

Air Canada has announced an agreement to amend the Capacity Purchase Agreement (CPA) with Jazz Aviation, a wholly owned subsidiary of Chorus Aviation, under which Jazz currently operates certain regional Air Canada Express flights.

Through the revised agreement, Air Canada will transfer operation of its Embraer E175 fleet to Jazz from Sky Regional and Jazz will become the sole operator of Air Canada Express services. The revisions to the CPA are subject to Jazz reaching an agreement with the Air Line Pilots Association, International. If this condition is satisfied, the CPA will be amended on a retroactive basis to January 1, 2021.

"Air Canada is consolidating its regional flying with Jazz in response to the ongoing devastating impact of COVID-19 upon the airline industry. This necessary realignment of our regional services will help Air Canada achieve efficiencies and reduce operating costs and cash burn by consolidating its regional operations with one provider. Moreover, by streamlining the regional fleet, this agreement will also position Air Canada to operate more competitively with a single provider as traffic returns following the pandemic," said Richard Steer, Senior Vice President, Operations and Express Carriers.

As a result of the CPA revisions and consolidation of regional flying, Air Canada expects to realize CA$400 million in cost reductions over the 15-year term of the agreement (CA$43 million per year until 2026 and CA$18 million per year thereafter).


SIA Engineering signs MOU to acquire SR Technics Malaysia

SIA Engineering Company (SIAEC) has signed a Memorandum of Understanding (MOU) with SR Technics Switzerland (SRT) relating to the potential acquisition (in part or whole) of SRT Malaysia by SIAEC.

SRT Malaysia, located in Selangor, Malaysia, is a subsidiary of SRT, incorporated in January 2013 to provide component repair, testing and overhaul services with a focus on the Airbus A320, A330, A340 and the Boeing 737NG aircraft in the Asia-Pacific region and beyond.

SRT is a leading independent maintenance, repair and overhaul (MRO) service provider for mainly Airbus and Boeing aircraft, engines and components, along with engineering services and training. SRT has a diversified global customer base and a long history of MRO experience, having started out as the maintenance and engineering section of Swissair, previously Switzerland's national carrier.

The MOU was signed following a review of the synergies that SRT Malaysia would bring to SIAEC’s existing component repair and overhaul services and fleet management programs.

Pursuant to the MOU, SIAEC will commence due diligence on SRT Malaysia, and SIAEC and SRT will subsequently enter into negotiations on the terms of the transaction, with the objective of finalizing and entering into the definitive agreements in respect of the transaction.

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Tamar Jorssen
Vice President Sales & Business Development
Email: tamar.jorssen@avitrader.com
Phone: +1 (788) 213 8543