ST Engineering set to buy Newtec for US$383 million

Singapore Technologies Engineering (ST Engineering), the Singapore-based engineering group operating in the aerospace, electronics, land systems and marine sectors, has agreed to buy Newtec Group NV (Newtec) the Belgium-based satellite communications company (satcom) for US$383 million. With the acquisition of Newtec, the group will be able to add intellectual property, products and market access, meeting demands across the full spectrum of the satcom market. According to ST Engineering, the combined businesses should be capable of generating: “about US$200 million in value arising from revenue and cost synergies.” Vincent Chong, President & CEO of ST Engineering, commented: “This proposed acquisition expands Read more

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SIA Engineering Company to form line maintenance joint venture in Thailand

SIA Engineering Company (SIAEC) has entered into a joint venture agreement with NokScoot Airlines Co. (NokScoot), to form a line maintenance joint venture based in Thailand. Under the agreement, NokScoot will hold an equity stake of 51% in the joint venture, with SIAEC taking the remaining 49% stake. The agreement is subject to the receipt of regulatory approvals. The joint venture will have an initial registration capital of THB63,680,000, or approximately S$2,740,000. NokScoot will subscribe for THB32,476,800, or approximately S$1,397,000, in cash and SIAEC will subscribe for THB31,203,200, or approximately S$1,343,000, in cash in the joint venture. The joint venture Read more

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IAI posts US$44 million net loss for 2018

Israel Aerospace Industries (IAI), Israel’s largest national military and civilian security defense company, has issued its consolidated financial statements for the year ended December 31, 2018. IAI has recorded an annual increase of US$2.3 billion in order backlog, reaching a record scope of approximately US$13.5 billion at the end of 2018. The Company reported sales totaling USD$ 3.7 billion, representing a 5% increase in sales compared to last year, and a net loss of US$44 million. The Company has cash balances in the aggregate of approximately US$1.5 billion and positive cash flows from operating activities totaling US$313 million.

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Iceland’s WOW air cancels all flights after potential investors walk away

WOW Air ©AirTeamImages

WOW air, the Icelandic low-cost carrier, has been forced to cancel all flights with immediate effect after two potential investors have both walked away from negotiations to help rescue the cash-strapped carrier that flew 3.5 million passengers last year. For the past six months WOW air had been trying to negotiate a deal with rival airline Icelandair and also Indigo, an American private equity firm which has a stake in a number of airlines. The departure of both interested parties left WOW air struggling to organise a successful restructuring package with bondholders and other creditors. Founded by Icelandic tech tycoon Read more

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Sabena technics unveils new maintenance site

©Sabena Technics unveils new MRO side in Perpignan-Rivesaltes (France)

The French group Sabena technics, an independent provider of aircraft maintenance and modifications (MRO), has acquired the assets of the company New EAS – now known as Sabena technics PGF – and thus reinforces its implantation and development on the European continent. Based in Perpignan-Rivesaltes (France), the Group’s new site employs 165 people and has three hangars able to accommodate a wide-body aircraft and up to five narrow-body aircraft for civil and military base maintenance operations. “This acquisition is perfectly aligned with our external growth strategy and reflects our desire to strengthen our presence in a very dynamic MRO market. Read more

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Cathay Pacific intents to acquire Hong Kong Express for US$628 million

Hong Kong Express ©AirTeamImages

Hong Kong-headquartered Cathay Pacific has announced its intention to acquire 100% of low-cost carrier Hong Kong Express (HKE), though HKE’s chairman and major shareholder, Zhong Guosong, is in the process of launching legal action in a bid to stop the sale. If successful, Cathay Pacific will own three of the four airlines operating out of Hong Kong, namely Cathay Dragon which Cathay Pacific bought as Dragonair in 2006, HKE and Cathay Pacific itself. The result would see Cathay Pacific and its subsidiaries hold a 45 percent stake in Hong Kong’s runway slots. Cathay Pacific has confirmed it intends to operate Read more

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TransDigm completes acquisition of Esterline Technologies

TransDigm Group Incorporate has successfully completed the acquisition of Esterline Technologies Corporation, a supplier of products to the global aerospace and defense industry. Under the terms of the merger agreement, Esterline shareholders will receive US$122.50 per share in cash, without interest.  The transaction is valued at approximately US$4.0 billion in total consideration, including the assumption of debt. The acquisition was previously announced on October 10, 2018.  The acquisition of Esterline expands TransDigm’s platform of proprietary and sole source content for the aerospace and defense industries, including significant aftermarket exposure. Esterline, with fiscal year 2018 revenue of US$2.0 billion, has attractive Read more

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Nordic Aviation Capital successfully completes Senior unsecured private placement

Nordic Aviation Capital (NAC) has successfully completed its third Senior Unsecured Private Placement issuance. The issuance was launched at US$250 million and was substantially oversubscribed allowing NAC to source a total of US$786.25 million. The new transaction consists of five and seven year tranches, with the proceeds being used to refinance aircraft within NAC’s portfolio. They will rank pari passu with all other unsecured indebtedness of the issuer, a wholly-owned subsidiary of NAC. This private placement issuance is a landmark transaction for the 29-year-old company and a further significant step in migrating to unsecured financing.

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Lufthansa Technik continues growth – record 2018 revenue and improved results despite major investment

Lufthansa Technik has posted record revenues with a 10% increase for 2018 compared to 2017, also surpassing 2017 results despite intensified price pressure and far-reaching investments in digitalization, its international network and personnel. Applicable to Lufthansa Technik AG and its 21 fully consolidated companies, sales revenues climbed by more than €500 million, surging from €5.404 billion to €5.918 billion, an increase of 9.5% above the previous year’s total. The company generated adjusted EBIT of €425 million (previous year: €415 million), an increase of 2%. The company outperformed the market in 2018, with the Americas region producing the highest level of Read more

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Munich Airport reports net profit of €150 million for 2018

Munich Airport has reported a successful 2018 operating year at its annual press conference in Munich. The 3.8% increase in traffic to a total of 46.3 million passengers flying to and from Munich, and the resulting gains in aviation and non-aviation revenues had a decisive impact on the increase in Group sales, which – based on preliminary figures – topped the €1.5 billion mark for the first time. EBITDA also surged to a new all-time high of €535 million. The airport operating company – the FMG Group – finished off the past year with earnings after taxes (EAT) of €150 Read more

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