RAYTHEON COMPANY, which posted large losses in the third quarter because of continuing problems at its aircraft manufacturing operations in Wichita, Kan. (BA, Oct. 22/191), plans to offer 29 million shares of common stock in an effort to raise $1 billion. The proceeds from the offering would be used to reduce debt and for general corporate purposes. Morgan Stanley and Credit Suisse First Boston will act as joint managers in the offering.
An anticipated decline in orders is forcing Gulfstream Aerospace to cut jobs by four to six percent, said a Gulfstream spokeswoman. Gulfstream also plans to cut production by eight aircraft because near term sales are "suffering as a result of a pause in the economy," said Stephanie Snyder, director of corporate communications. The mix of aircraft being cut has not yet been decided, she said. In addition to the reduction of its 9,196 permanent employee workforce, the company is laying off 40 percent of its contract employees Nov. 1.
CJ SYSTEMS AVIATION GROUP started operations at AirLink, a new air medical services program serving southeast North Carolina and northeast South Carolina. AirLink is a joint program between CJ Systems and New Hanover Health Network (NHHN) that will augment the existing emergency medical transportation system in the area.
CESSNA AIRCRAFT executives say the new Citation Sovereign business jet is "coming along nicely" and is expected to make its first flight in the first quarter of next year.
DUOCOMMUN INC. will combine Duocommun AeroStructures and Composite Structures LLC to further integrate Duocommun's marketing, engineering and manufacturing capabilities in aerostructures and to provide its customers with a full range of structural component and subassembly capabilities while reducing redundant or overlapping costs. The new organization will retain the name Duocommun AeroStructures and will be led by Bradley W. Spahr, president of Composite Structures.
HONEYWELL teamed with Cessna Aircraft to provide reduced vertical separation minimum equipment for more than 2,000 older Citation business jets. Honeywell developed the RVSM compliance package, which includes AZ-252 digital air data computer, AM-250 air data/altimeter and VN-800 vertical navigator controller, for the Citation 500, I, II, S/II and V aircraft. The package will be available for installation from authorized Cessna Citation Service facilities.
GOODRICH appointed new executives to its landing systems division. Brian Gora was named president, landing gear systems and Theunis Botha was named vice president and general manager, landing systems services division. In his new position, Botha succeeds Gora. Botha most recently was vice president and general manager of the company's turbine component services. Gora joined Goodrich in 1997 from Michelin Aircraft Tire.
Alaska Airlines installed the first of 70 hardened cockpit security systems designed by Raisbeck Engineering for the airline's fleet of Boeing 737 aircraft. The Raisbeck Armoured Cockpit Security System "meets all current FAA requirements, as well as those envisioned to be implemented by April 2003," said Raisbeck. Patents are still pending. The system complies with Federal Aviation Regulations regarding standards such as pressurized compartment loads, emergency exit, ventilation and closing and locking flight compartment doors, the company said.
FORTY-FOUR DAYS after the Sept. 11 terrorist attacks forced the shutdown of the national airspace system, the Transportation Department finally said Thursday it will publish a rule this week detailing how air taxi and air tour operators can obtain their share of funds provided under the Air Transportation Safety and Stabilization Act.While more than 100 large air carriers began receiving funds shortly after President Bush signed the legislation Sept. 22, smaller operators still face weeks of additional delay before they see any financial relief. See article below.
INDONESIAN carrier Merpati Nusantara Airlines wants to phase out its fleet of 14 locally produced IPTN CN-235 turboprops, but is having difficulty finding a buyer. Merpati wants to replace the 44-seat turboprops with Boeing 737s to remain competitive in the growing Indonesian domestic market, which is seeing new startup airlines. Abdul Halim, a Jakarta-based Merpati official, said the airline has put the CN-235s up for sale but has yet to receive any offers from potential buyers.
Japan's Maritime Safety Agency has requested about $30 million from the Ministry of Finance to buy the first two aircraft for anti-piracy and anti-smuggling efforts. The agency announced earlier this year it is seeking longer-range aircraft for patrol missions over the waters of Malaysia, Indonesia, the Philippines and other countries in Southeast Asia. The agency currently uses two Dassault Falcon 900As for that purpose, but it wants longer-range aircraft for nonstop operation between Japan and Singapore.
B/E Aerospace, Inc., responding to sharply declining demand for its cabin interior products in the wake of the Sept. 11 attacks, said Tuesday it is scaling back production, closing five of its 16 plants and laying off more than 20 percent of its employees.
Bombardier Aerospace, attempting to fill a niche in the upper end of its product line, announced the soft launch of the Global 5000 business jet Thursday, a shortened version of the Global Express designed to provide nonstop transportation for up to eight passengers and three crew members over 5,000-nautical-mile stage lengths. The new aircraft, priced at $32.95 million complete, is designed to compete against the Falcon 900 and Gulfstream IV in the "super-large" business jet category.
NEW PIPER AIRCRAFT has restarted production at its plant after a two-week shutdown that began in late September. The company temporarily furloughed all but a skeleton crew of 250 people while it worked through a bottleneck of planes that were grounded at the factory in the wake of the Sept. 11 attacks (BA, Sept. 24/139). New Piper worked through the backlog and is manufacturing aircraft at production levels announced in early September, a spokesman said. But the company is closely watching the economy, he added.
Illinois Gov. George Ryan (R) submitted a $6 billion regional aviation plan that calls for building a new airport in Peotone, Ill., and permitting O'Hare operations to grow no more than about 20 percent from current levels. The plan supports most of Chicago Mayor Richard Daley's (D) O'Hare proposal except for a new, eighth runway. Ryan's plan also includes keeping downtown Chicago's Meigs Field open, despite longstanding plans by Daley to close it (BA, Oct. 22/185). Ryan calls his proposal Safe Airports For the Economy (SAFE).
A first production version of Bombardier's CRJ900 made its first flight this month from Mirabel International Airport in Montreal. Pilots flew the 86-seat twinjet airliner to an altitude of 17,000 feet and took it to a speed of 250 knots during the two-hour and three-minute flight on Oct. 20. The successful first flight indicates that "Bombardier CRJ900 will be in airline service at least two years before any competitive product," said Steven A. Ridolfi, president of Bombardier Regional Aircraft.
ROLLS-ROYCE and Philippine Aerospace Development Corporation opened their first aero repair and overhaul facility last month. The joint venture, in which Rolls-Royce has an 80 percent share, is located in Pampanga, Philippines and will serve commercial and military customers in East Asia.
NEWPORT NEWS/WILLIAMSBURG, VA. INTERNATIONAL AIRPORT (PHF)was awarded another $7.7 million in Airport Improvement Program funds from FAA to permit expedited completion of aircraft ramps and taxiways for the Aviation World's Fair to be held there in April 2003 and for use in an aviation business park following the fair.
HONEYWELL TPE331-8, -10N, and -12B turboprop engines (Docket No. 2000-NE-39-AD; Amendment 39-12472; AD 2001-21-02) - requires, on engines with certain electronic engine controls installed, revising the Emergency and Normal Procedures section of the applicable Airplane Flight Manual (AFM) until the existing EECs are replaced. This amendment is prompted by a report of an engine experiencing an uncommanded full power increase during an approach while both engine power levers were at the flight idle gate.
BILL WALTHALL was appointed vice president, customer relations at Goodrich in Charlotte, N.C. Walthall, who has been working at Goodrich since 1979, will be responsible for airline and large aerospace customer relations. He was most recently the company's group vice president, engineered products.
GENERAL AVIATION groups are hoping that the House security bill will serve as a vehicle for an economic relief package to help businesses suffering under weeks of post-Sept. 11 airspace restrictions. The House this week is expected to consider its version of a security bill that would step up federal oversight of screeners and impose a per-passenger fee to pay for it.
Government leaders last week opened up more airspace to general aviation and freed up disaster relief loans, providing much-needed relief to scores of pilots and small aviation businesses hammered by ongoing flight restrictions. FAA phased out its ban on visual flight rules (VFR) operations for GA aircraft equipped with transponders in all but three cities - Boston, New York, and Washington, D.C. At the same time, the Small Business Administration expanded its disaster relief loans to all businesses affected by the Sept. 11 terrorist attacks.
BOMBARDIER named George Gonzalez vice president and general manager of Bombardier Business Aviation Services, a newly formed unit that "blends all current customer support functions with the Aviation Services center network to create a turnkey service capability," the company said. Gonzalez, who will report to the president of Bombardier Business Aircraft, will be responsible for the overall operational and financial performance of customer services, technical services, technical publications, maintenance and services, flight and maintenance training and aircraft spares.
FAA, which has been working with general aviation organizations to open the airspace in a secure manner, has found the associations' recommendations "critical" in its airspace management plans. "What they tend to recommend are the things that are practical," said Steve Brown, associate administrator for air traffic services, who said they have given the nation's security chiefs a clear idea of their intent. Brown could not say when more restrictions would be lifted, but told BA they likely would be removed in a phased manner.
GENERAL DYNAMICS officials expect to produce slightly fewer Gulfstream IV and V business jets in the coming year than in 2001, they said last week during a conference call with financial analysts. The current outlook anticipates production of seven or eight fewer airplanes in 2002, with the number of Gulfstream IVs declining while the number of Gulfstream 200s and 100s goes up a bit. The Gulfstream backlog is stronger in 2003 than it is for 2002, they said. See article below.
