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Monday, July 25, 2005

Supply Side


Transport Canada Civil Aviation earlier this month awarded type certification for the Embraer [ERJ] 170 and 175 models. The certification was on schedule and it will now permit Embraer to deliver the Embraer 175s that Air Canada has ordered. Air Canada has ordered 15 Embraer 175s configured into two classes with seating for 73 passengers. The Embraer 170 and 175 were previously certified by Brazil's Centro Tecnico Aerospacial and the European Aviation Safety Agency. The Federal Aviation Administration has certified the Embraer 170.

During the last six months, Embraer delivered 60 airliners, business jets and military aircraft. In the second quarter, it delivered 30 airplanes. The company has forecast that it will deliver 145 planes for the year, thus it needs to increase its production pace. A year ago, Embraer delivered 43 planes in the second quarter. During the most recent quarter, it has received 58 new orders for its Embraer 170/190 family. The company's firm order backlog now stands at $10.9 billion - up $1 billion in the last three months.


Air New Zealand on July 15 took delivery of its first Bombardier [BBD] Q300. The 50-seat turboprop is the first of 17 that the carrier ordered last fall. It has options for 10 more Q300s and 13 Q400s, the 70-seat model.

Carinthian Spirit, a new Austrian regional carrier that is a unit of Styrian Spirit, will begin service on Sept. 5 with a Bombardier CRJ 200. Carinthian Spirit will be based in the southern Austrian town of Klagenfurt and will fly to Salzburg and Zurich. With a new CRJ 700, expected early next year, the carrier will then fly a route from Klagenfurt to Amsterdam in partnership with KLM.


GoJet Airlines, a new carrier of Trans States Holdings, has selected five modules of Sabre Airline Solutions for its crew manager, flight planning, dispatch and operations control. Trans States Airlines already uses the Sabre products in its operations.

Sabre last week purchased lastminute.com, one of Europe's independent online travel companies. The Web site operates in 14 countries and has 9.8 million subscribers to its weekly newsletter. Sabre will fold lastminute.com into its Travelocity Europe operation.


AAR [AIR], a provider of aviation/aerospace products and value-added services, earned $5.7 million, or 18 cents per share, on sales of $209.9 million in the company's fourth quarter, which ended May 31. A year ago, the company posted a profit of $2.5 million, or eight cents per share, on sales of $176.8 million. For the year, AAR posted a profit of $15.4 million, or 48 cents per share, on sales of $747.8 million. In its previous fiscal year, it earned $3.5 million, or 11 cents per share, on sales of $644.4 million. In the fourth quarter, AAR's maintenance, repair and overhaul unit increased its sales by 13 percent of the previous fourth quarter.

Iridium Satellite

The U.S. Department of Agriculture has outfitted 200 aircraft with Iridium Satellite equipment which provides data and voice communication between the aircraft and the ground controllers. The aircraft involved are tankers used for fire fighting tasks. The equipment tracks and displays an aircraft's location which minimizes the need for pilots to frequently report their locations while flying under visual flight rules.

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