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Monday, August 1, 2005

Supply Side

Embraer

Last month, Embraer [ERJ] delivered three Embraer 175s to Air Canada [ACE]. The Brazilian aircraft manufacturer will deliver 15 175s to Air Canada by year end. Transport Canada Civil Aviation certified the Embraer 175s in early July. Air Canada ordered its 15 planes to be configured into two- class seating carrying 73 passengers. Air Canada is scheduled to start receiving the first of its 45 Embraer 190s in November. The 93-seat Embraer 190 still needs to be certified in Canada.

Sioux Falls Regional Airport

The Transportation Security Administration (TSA) last month approved an application by Sioux Falls Regional Airport to participate in the screening partnership program. The South Dakota airport can now hire a private company to handle passenger screening instead of TSA officers. At the same time, TSA has approved 34 companies as qualified vendors to handle passenger and baggage screening services at the airports in the screening program. With the addition of Sioux Falls, there are now seven airports in the program.

Smiths Detection

Newark Liberty International Airport is the first airport to install the Smiths Detection Sentinel II explosive detection walk-through trace portal. The device had been field-tested at a number of airports under the TSA's supervision. The machine, using ion mobility spectrometry, tests particles blown off passengers as the pass through the portal for trace explosives. Smiths Detection will next install its portals at New York's LaGuardia and JFK airports.

B/E Aerospace

B/E Aerospace [BEAV] reported a second quarter profit of $8.4 million, or 14 cents per share, on sales of $134.8 million. A year ago, the company posted a $2.4 million loss on sales of $123.5 million. B/E's commercial aircraft unit increased its sales by 35 percent to $14.2 million from the same period last year. The company anticipates its 2005 sales will be in excess of $800 million, or a 45 percent increase over 2004. By year end, it expects to have a backlog of $1 billion worth of orders.

Sabre

Sabre Holdings [TSG] reported a second quarter profit of $43.9 million, or 34 cents per share, on sales of $619.3 million. A year ago, the company earned $58.9 million, or 42 cents per share, on sales of $407.4 million. In the second quarter, sales of Sabre Airline Solutions were $67 million, up 10.5 percent from the same period of 2004. The company's travel network generated sales of $429 million, up 5.3 percent. Revenue was up 37 percent at Travelocity, the company's online booking service, to $172 million.

PAMA

The Professional Aviation Maintenance Association (PAMA) has become an affiliate of the Society of Automotive Engineers (SAE). PAMA's 3,000 members will now be eligible for the SAE benefits while allowing the group to maintain its own separate identity. SEA Institute will now be available to PAMA for administrative, publishing and distribution services.