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LATEST NEWS
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Friday, October 2nd, 2020
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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.
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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 the U.K. government for a financial bailout has yet to be given any serious consideration. £2 billion will be raised from shareholders and commenting on the refinancing plan, Warren East, CEO of Rolls-Royce said: “This is a comprehensive package which will take any liquidity questions off the table through this crisis,” adding, “We wanted this package to provide sufficient headroom even through our worst case scenario.”
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While a rights issue had previously been discussed, East was keen to point out that would not be considered an option until it could be shown its restructuring plan was working. On that basis, the £2.0 billion it is looking to raise from shareholders will be as a result of a ten for three discounted rights issue that has been underwritten at 32p per share, a 41% discount on what analysts estimated would be a theoretical ex-rights price of 54.6p.
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According to Reuters news agency, shareholders will vote to approve the rights issue at a general meeting expected to be held on Oct. 27 and conditional upon its completion, additional debt options will open up. Rolls-Royce said it intended to begin a bond offering to raise at least 1 billion pounds, while UK Export Finance has indicated it was ready to support an extension of its 80% guarantee of Rolls-Royce’s existing £2.0 billion five-year term loan and would support a loan amount increase of up to £1.0 billion. Rolls-Royce also said it had commitments for a new two-year loan facility of £1.0 billion. (£1.00 = US$1.29 at time of publication.)
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Vytautas Ledakas is the newly appointed CEO of BAA Training China - a modern aviation training center planned to be equipped with six full flight simulators (FFS) and part of a Joint Venture (JV) established in 2019 by Avia Solutions Group (ASG) and Henan Civil Aviation Development and Investment Company (HNCA). His appointment will entail the management and development of the center’s pilot training operations.
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The newly appointed CEO will seek to accomplish the ambitious goals and KPI's of BAA Training China. This will include the management and development of the Joint Venture Company, the implementation of the franchise business model into the daily operations of the center, and establishing management and finance policies, purchase and sales procedures and plans to build a new business network globally. Another essential objective will be the strengthening of the partnership with the business‘ co-owner the Henan Civil Aviation Development & Investment Company, to ensure smooth and long-term cooperation and business development.
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The new CEO of BAA Training China has commenced his duties on October 1, 2020.
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North American Aerospace Industries (NAAI), a leading provider of sustainable end-to-end aircraft recycling solutions, has reported that its affiliate, Aircraft Solutions Middle East, has entered into a Memorandum of Understanding with Aircraft Support Industries for the development of three new aircraft recycling facilities including the NAAI facility planned at the Global TransPark in Kinston, North Carolina, U.S.A. The other two facilities being constructed for Aircraft Solutions will be located at Al Ain International Airport in the Emirate Abu Dhabi, UAE and Clark International Airport in the Philippines.
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In providing its services on behalf of Aircraft Solutions, Aircraft Support Industries will rely on a phased-in project development approach. Phase one will focus on a custom-designed 323,000 ft² dismantling hangar that can accommodate three of the largest aircraft such as the A380. Aircraft Support Industries will apply its proprietary stressed arch building system along with a 81,000 ft² annex for the construction of the 1076-ft span hangar. The annex will be used to house the engineering support workshops and materials warehousing for the NAAI facility in the U.S.A. and Aircraft Solutions’ facilities in the Middle East and Asia.
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“Our state-of-the-art facilities will enable our companies to provide comprehensive, sustainable aircraft recycling solutions for aircraft owners, operators, airport authorities, and military services with a zero-waste mission to recycle 100% of an aircraft,” said Sven Daniel Koechler, PhD, President and CEO of North American Aerospace Industries Corporation (NAAI). “While the pandemic has introduced delays in our construction schedule, we are optimistic that we will be able to make up for lost time in that Aircraft Support Industries is a strong partner able to facilitate a construction project in the most efficient, timely manner.”
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SITA, the IT provider for the air transport industry, delivering solutions for airlines, airports, aircraft and governments, becomes a new business partner of BARIG (Board of Airline Representatives in Germany), the association of more than 100 international and German airlines operating in Germany.
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SITA is a partner of the majority of airlines and airports across the globe. As such, the company is successfully committed to reliably meeting the demands of the aviation industry through technological progress, thus making a substantial contribution to the BARIG business partner segment "Technology and Innovation."
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"We are very pleased to welcome SITA as a new business partner," says BARIG Secretary General Michael Hoppe. "If the last few months have made something apparent, it is that technological innovation and a worldwide communication network are indispensable for air traffic. SITA's extensive communication and information systems are present at more than 1.000 airports globally, support nearly every airline and connects around 95% of all international travel destinations. Being such a 'backbone of communication,' SITA expands our 'Technology & Innovation' segment by becoming a valuable partner."
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Boeing has reported that it will consolidate production of 787 jets at its facility in North Charleston, S.C., starting in mid-2021, according to the company's best estimate. The decision comes as the company is strategically taking action to preserve liquidity and reposition certain lines of business in the current global environment to enhance efficiency and improve performance for the long-term.
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While Boeing's versatile 787 family has outperformed other widebody airplanes during the challenging market downturn, its production system has been adjusted to accommodate the current difficult market environment while positioning the 787 family to ramp up production as air travel increases.
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The company began assembling 787-8 and 787-9 airplanes at its Everett site in 2007, and brought the North Charleston facility on line as a second final assembly line in 2010. However, only the North Charleston site is set up to build the larger 787-10 model. Production of the smaller 787 models will continue in Everett until the program transitions to the previously-announced production rate of six airplanes a month in 2021.
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In July, Boeing announced an in-depth study into the feasibility of producing 787s at a single location. The review examined the impacts and benefits to Boeing customers, suppliers, employees and the overall health of the production system. The 787 study is part of an enterprise review underway to reassess all aspects of Boeing's facility footprint, organizational structure, portfolio and investment mix, and supply chain health and stability.
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This analysis confirmed the feasibility and efficiency gains created by consolidation, which enables the company to accelerate improvements and target investments to better support customers.
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Israel Aerospace Industries (IAI) Aviation Group has delivered the first Passenger-to-Cargo converted Boeing 737-700 to Chines airline - Tianjin Cargo Airlines, which will become the first operator of this type of aircraft in China. The conversion work was carried out at the Tianjin MRO site, under a partnership agreement with IAI and Haite Group for developing the B737-700 and B737-800 STC. The two companies have been working together since 2017, to meet the increasing demand for cargo aircraft in China, and around the world.
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With the rise of e-commerce and the resulting higher demand for cargo aircraft, together with the effects of the COVID-19 pandemic, cargo aircraft have become the lifeblood of the Chinese economy. In recent years, most narrow-body cargo aircraft were based on the Classic Boeing 737 family, in particular the 737-400 model. As the Classic models are nearing the end of their lifecycle, they are being replaced by the Boeing 737 NG (New Generation) with the B737-700/800 models. These aircraft provide improved performance, avionics, and fuel consumption.
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Heston MRO, the independent MRO organization in Australasia, added Engines-On-Wing-capabilities to its range of services.
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As part of CASA Part 145 approval, the company introduced engines borescope inspections, bore-blending, together with components inventory check, QEC/ LRU replacement, End-of-Lease inspections, engine preservation, and technical consultancy.
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The newly acquired capabilities allow Heston MRO to offer engines on wing services to airlines, asset owners, and OEMs in either Brisbane Airport, Wellcamp Toowoomba Airport, or any other major port in Australia and wider South Pacific Region.
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BOC Aviation has announced that Steven Townend has commenced the role of Deputy Managing Director and Chief Financial Officer with effect from October 1, 2020. In his new role, he oversees the Finance, Treasury, Tax, Risk and Settlement Departments.
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Townend was formerly Chief Commercial Officer (Europe, Americas and Africa), based in London, a role he held since June 2014. He joined the company in January 2001 as Structured Finance Director and was appointed the Chief Commercial Officer in July 2004. Townend has more than 29 years of leasing and banking experience. He replaces Phang Thim Fatt, who will remain with the Company to ensure a smooth transition of his duties until his retirement later in 2020.
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