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Monday, March 21, 2005

Supply Side

Bombardier

GoJet Airlines, a new subsidiary of Trans States Holdings, placed a firm order for 10 Bombardier [BBD] CRJ 700s. In addition, GoJet has an option for 40 additional CRJ 700s. The firm order has been valued at $317 million. If all the option jets are delivered, the contract would be worth $1.6 billion. Trans States is forming GoJet so that it can fly the larger RJ for United Airlines [UALAQ], one of its current code-share partners. The scope clauses at another partner, American Airlines [AMR], preclude Trans States Airlines from flying an RJ larger than a 50-seater. The CRJ 700s will be configured with 66 seats divided into three classes. The first CRJ 700s are to be delivered for an August start of the new carrier. All 10 firm orders are to be delivered by the end of the year.

The Japan Civil Aviation Bureau has acquired one Bombardier Q300 turboprop. The Japanese agency will use the new plane to inspect and calibrate the next generation of low and medium-altitude navigation aids. Norwegian Special Mission is supplying the UNIFIS 3000 automatic flight inspection system which will be installed by Field Aviation, of Toronto. Once outfitted, the plane is scheduled to be delivered to Japan in the final quarter of 2006.

Embraer

Industria Aeronautica Neiva, a wholly owned unit of Embraer [ERJ], delivered its 1000th Ipanema crop duster. While the Ipanema has been in production for more than 30 years, this latest plane is the first to be ethanol-powered. The Brazilian government last fall certified the engine which burns alcohol produced from sugar cane. Neiva has registered the fuel as Aviation Alcohol in Brazil. Neiva has orders to convert more than 100 Ipanema to the ethanol-powered engines. In Brazil, ethanol is three to four times cheaper that aviation gasoline. It also burns cleaner than traditional aviation gas.

Horizon Air

Horizon Air, the regional unit of Alaska Air Group [ALK], is now marketing a new freight delivery option. Its new Standard Airfreight will get most items delivered within 24 hours to most cities served by Horizon and Alaska. The new service is less expensive since it does not promise same-day service.

Stratus Technologies

The Federal Aviation Administration (FAA) has selected the Stratus ftServer 6600 to be the new server platform that will be the foundation the U.S. National Airspace System. The FAA is replacing aging computer system with four of the Stratus Technologies' servers. The system processes more than 1.5 million daily messages. The new platform is to be installed in the last three months of the year. The $6.4 million contract with Stratus includes a 10-year maintenance agreement.

Pan American

Pan American Flight Academy recently received FAA Level 5 approval of its Bombardier CRJ flight trainer. Manufactured by Faros/Wicat, the training simulator has been installed on the Phoenix campus.

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