General Atomics Europe intends to take over RUAG Aerospace Services

General Atomics Europe GmbH (GA-E), the medium-size service and consulting company with stakes in eight subsidiaries, has announced its intention to acquire RUAG Aerospace Services (RUAG), formerly part of the Swiss technology group RUAG International. This will enable GA-E to expand its product and service portfolio to include the maintenance and repair of business aircraft and military helicopters, as well as the production and maintenance of the Dornier 228. GA-E intends to retain 450 RUAG staff that will result in the creation of a 1,000-strong technology group workforce.  GA-E will also become one of the few companies in Germany to Read more

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Honeywell acquires Ballard Unmanned Systems

Ballard Unmanned Systems will strengthen and expand Honeywell’s unmanned aerial systems and urban air mobility product portfolio ©Honeywell

Honeywell has acquired assets from privately held Ballard Unmanned Systems, a wholly owned subsidiary of Southborough, Mass.-based Ballard Power Systems. Ballard Unmanned Systems designs and produces industry-leading, stored-hydrogen proton exchange membrane fuel cell systems that power unmanned aerial systems (UAS), particularly those used for energy inspection, cargo delivery, and other commercial and defense applications where demand for UAS services is growing. Honeywell is acquiring the key intellectual property, inventory and equipment of Ballard Unmanned Systems. Ballard’s team of fuel-cell experts will also join Honeywell as part of the acquisition. “Adding Ballard Unmanned Systems to the Honeywell family is another example Read more

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Rolls-Royce looks to double up on October 1 bond offering to now raise £2 billion

On October 1, Rolls-Royce Holdings (Rolls-Royce) announced its intention to raise at least £1 billion through a bond offering as part of its strategy to raise £5 billion in a recapitalization package to support its long-term strategy. However, unanticipated strong demand for the investor Notes has seen the company double the size of the offering, which will now comprise three tranches in three separate currencies issued by Rolls-Royce and guaranteed by the Company. The Bond Offering will comprise:  US$1,000 million aggregate principal amount of 5.750% Notes due 2027; €750 million aggregate principal amount of 4.625% Notes due 2026; and £545 Read more

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Fly Leasing closes new US$180 million term loan

Fly Leasing (FLY), a global leader in aircraft leasing, has closed a new US$180 million term loan (the 2020 Term Loan). The interest rate on the five-year term loan is LIBOR plus 6.00% with a 1.00% LIBOR floor. The financing was issued at an original issue discount of 4.5%. The 2020 Term Loan will be secured by 11 narrow-body aircraft owned by FLY and its subsidiaries, four of which are unencumbered and seven of which are currently financed in FLY’s 2012 Term Loan. The proceeds will be used for general corporate purposes.

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Delta Air Lines posts September quarter net loss of US$2.1 billion

Delta Air Lines has posted financial results for the September quarter 2020. Delta’s adjusted operating revenue of US$2.6 billion for the September quarter was down 79% versus the September 2019 quarter, as demand for air travel remains under significant pressure. Passenger revenues declined 83% on 63% lower capacity. Non-ticket revenue streams have performed relatively better than passenger revenues, with total loyalty revenues declining 60% and cargo declining 25%. Adjusted pre-tax loss of US$2.6 billion excludes US$4.0 billion of items directly related to the impact of COVID-19 and the company’s response, including fleet-related restructuring charges and charges for voluntary separation and Read more

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EU looks to persuade U.S. to drop trade tariffs surrounding Airbus-Boeing dispute

Valdis Dombrovskis, the new EU trade chief has warned the U.S that it needs to withdraw its US$7 billion tariffs it has recently placed on EU products or it will have to deal with a retaliatory US$4 billion in tariffs on exports to Europe. For 16 years there has been a dispute between Europe’s Airbus and U.S planemaker Boeing over what have been seen as unfair subsidies. Last October the U.S was awarded the right to impose tariffs by the World Trade Organization (WTO), which includes a 25% duty on products such as olives, cheese and single-malt whisky, together with Read more

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easyJet looks to government for bespoke aid package for airline industry


easyJet’s CEO Johan Lundgren has openly turned to the U.K. government to provide a tailor-made package to help the airline industry recover from the catastrophic effects of the COVID-19 pandemic on air travel. The low-cost carrier is set to post its first-ever operating loss and is on target to lose between £815 million and £845 million by year end. Despite having carried nine million passengers between July and September, this was only 38% of its planned pre-pandemic capacity and it still managed to burn through £700 million in that period. Since the pandemic began, easyJet has raised over $2.4 billion Read more

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KLM looks to Dutch government for €3.4 billion loan which has strings attached

KLM ©AirTeamImages

KLM Royal Dutch Airlines (KLM) has submitted its critical restructuring plan to the Dutch government as part of its commitment to reduce operating costs. The government had stipulated that the carrier needed to reassess its strategy, cost-cutting initiatives, financial considerations and how staff will embrace reduced employment conditions amounting to income-dependent, graduated cutbacks of up to 20%. According to a press release from KLM issued October 2, it has now reached agreement with all unions for ground, cockpit and cabin staff on key principles of this plan for the period through 2022. This includes the unions VNC and FNV Cabine Read more

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Rolls-Royce looks to raise £5 billion to cope with pandemic fallout

Rolls-Royce, the manufacturer of jet engines which power both the Boeing 787 and Airbus A350 has seen its share price since the outbreak of the COVID-19 pandemic fall by over 80%. The company’s market value currently stands at approximately £2.0 billion. Part of the problem lies not just with a drop in demand for new engines, but airlines pay Rolls-Royce based on hours flown. With its engines operating on long-haul flights and that sector of air travel being harder hit than the domestic market, Rolls-Royce is struggling further. Plans to shed 9,000 jobs have already been mooted, though turning to Read more

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LCI and Sumitomo Mitsui Finance and Leasing launch US$230 million helicopter leasing joint venture

©LCI and SMFL to establish and operate a joint venture helicopter leasing business

LCI, a leading helicopter lessor and the aviation division of the Libra Group, and Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL) have agreed to establish and operate a joint venture helicopter leasing business. The vehicle has launched with the initial acquisition of 19 next-generation helicopters with a value of US$230 million. SMFL and LCI are co-investors in the partnership, with LCI also acting as manager. The young, modern helicopters acquired by the joint venture will be used by operators across the globe on a range of missions including Emergency Medical Services (EMS), Search and Rescue (SAR), and transportation to Read more

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