Monday, May 2, 2005
Supply Side
Embraer
Saudi Arabian Airlines, in its first aircraft purchase in 10 years, placed a firm order for 15 Embraer [ERJ] 170s. The planes will be configured with two cabins seating 66 passengers. The first Embraer 170 will be delivered in December. The order is worth $400 million. The state-owned carrier will use the planes on both domestic and regional routes. Embraer will set up a maintenance center in the kingdom and provide a flight simulator. Embraer sees the possibility of selling over 150 of its 170s and 190s in the Middle East in the coming decade.
BAe Regional
Atlantic Airways, an airline serving the Faroe Islands, has leased a BAe 146-200 from BAe Systems Regional Aircraft. The plane was delivered in late April. Atlantic Airways currently operates three BAe 146-200s on flights linking the Faroe Islands to Scandinavian cities, Iceland and London. The latest 146 is the first to be leased from BAe.
SkyQuest
International Aviation Support recently purchased an Embraer 120FC from GMAC Finance. The sale was brokered by SkyQuest International representing GMAC.
digEplayer
After scrapping the costly idea of installing live TV programming in its growing fleet of Airbus 319s, Flyi will now rent the digEplayer media player to passengers on Independence Air transcontinental flights. The live TV would have cost more than $1 million per plane to wire. Independence will rent the personal video players for $10 per flight. Flyi decided to move ahead with program after a successful one-month pilot test.
Sabre Airline Solutions
Ten more airports are subscribing to Sabre Airline Solutions consulting practice. The airports use Sabre for its analytical service in marketing and air service development campaigns. The latest U.S. clients include Melbourne International, Florida; Lynchburg Regional Airport, Virginia; Abraham Lincoln Capital Airport, Illinois; Lancaster Regional Airport, Pennsylvania; and Laurel-Hattiesburgh Regional Airport, Mississippi. Sabre now sells its service to more than 100 airports.
ExelTech
Montreal-based ExelTech has struck a comprehensive spares support agreement with Magellan Group for North American and European operators of the ATR-42 and ATR-72. Magellan will be positioning more than $1 million worth of spare parts for the ATR aircraft in ExelTech's Montreal facility. Magellan will tap this inventory to ship directly to operators worldwide.
In other news, ExelTech has embarked upon an extensive $2 million business re-engineering program designed to improve the company's productivity in the maintenance, repair and overhaul industry. ExelTech has hired Donald R. Kamenz as its new vice president of sales and marketing. Prior to his appointment, Kamenz had been the vice president of sales for Saab Aircraft Leasing in Sterling, Va.
B/E Aerospace
B/E Aerospace [BEAV] reported a $4.1 million profit, or seven cents per share, for the first quarter on sales of $196.5 million. A year ago, the company reported a $7.6 million loss on sales of $175.1 million. The commercial aircraft division earned $9 million on sales of $127.6 million in the first quarter. The division's earnings were up 7.1 percent over the same period of 2004.
Rockwell Collins
Rockwell Collins [COL] earned $95 million, or 52 cents a share, in its second fiscal quarter on sales of $829 million. A year ago, the company earned $71 million, or 39 cents per share, on sales of $719 million. The company's commercial systems division sold $181 million in business and regional aviation electronics in the three months ending March 31. A year ago, the division had $142 million in similar sales.

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