Monday, June 27, 2005
Supply Side
Bombardier
Bombardier [BBD] delivered the first of 10 CRJ 700s to GoJet Airlines, a new unit of Trans States Holdings. All 10 airplanes are expected to be delivered by December. The 66-seat airplane is being configured into three classes for its use in the United Express fleet. The new carrier will begin service in August operating out of Chicago, Denver and Washington. GoJet has options for an additional 40 CRJ 700s. The first GoJet aircraft is the first CRJ 700 to be fitted by Bombardier with the General Electric [GE] CF 34-8C5B1 engine, a version of the same engine now used on the CRJ 900 series. All new CRJ 700s will have an engine in common with the CRJ 900 fleet.
Standard Aero
GoJet has awarded Standard Aero a 15-year contract to maintain the GE CF 34-8C5B1 engines that will power its CRJ 700s. The initial contract is valued at $70 million. If GoJet exercises its option for up to 40 additional CRJ 700s, the Standard Aero contract can be amended to service the additional engines. The work will be performed at its facility in Winnipeg, Manitoba. In addition, GoJet awarded Standard Aero a second contract, valued at $5 million, to handle the maintenance of the RE220 auxiliary power units on the new CRJ 700s. Over the 15 years of this contract, the work will be performed at Standard Aero's facility in Knoxville, Tenn.
Wing Aviation
ExpressJet [XJT] paid an undisclosed sum earlier this month for a non-controlling interest in Wing Aviation. While both companies are based in Houston, Wing Aviation operates a 90,000-square-foot facility at the Lone Star Airport. Wing Aviation is a full-service aviation company specializing in aircraft charter and management, airframe maintenance, avionics installation and aircraft painting. ExpressJet is making the investment as an entry in the private aviation services market.
CAE
Japan's All Nippon Airways has ordered a Bombardier Q400 simulator from CAE. The full-flight simulator will be based at the carrier's training center at Haneda Airport in Tokyo. It is to be delivered by next fall. In other news, CAE shareholders have decided to move the company's headquarters from Toronto to Montreal. The company already has 2,800 employees in the Montreal area. The company was founded in Montreal in 1947.
MicroStrategy
The U.S. Transportation Security Administration (TSA) has purchased MicroStrategy's [MSTR] business intelligence software to analyze transportation security operations are major airports. The software anchors the TSA's performance management information system, which collects and analyzes information on passenger and baggage screening. The system was designed by Bearingpoint, a consulting firm.
SITA
SITA, a communications services integrator for the travel industry, has signed a joint licensing agreement with INS, a vendor of consulting services and software. Together the two firms will market such programs as Telecommunications Cost Optimization services, TrustCheck Risk Management, IPT Rapid Assessment and Call Center and Voice Consolidation.
FlightSafety International
FlightSafety International has promoted Brenda Seaman to assistant manager of its Atlanta learning center. She was previously the regional marketing manager for South and Central America.

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