Monday, August 29, 2005
AAR Corp. [AIR] recently won a 10-year contract to provide supply chain services to Mesa Air Group [MESA]. The contract covers Mesa's Bombardier [BBD] CRJ 700s and CRJ 900s along with the Embraer [ERJ] 145s. The contract has been valued at nearly $200 million over the next 10 years. AAR's Aviation Supply Chain group will be the exclusive provider of these services.
Europe's first Embraer 170 full flight simulator is now in service based at the Swiss Aviation Training Center in Zurich. Manufactured by CAE in Canada, the trainer is owned by Embraer. Due to the commonality of the four airplanes within the Embraer 170/190 family, the simulator enables pilots to train for each of these aircraft.
Earlier this month, Embraer delivered three specially configured Legacy Executive aircraft to the government of India. The government has ordered five of these planes and it has options for two more. Two of the planes have been deployed to the Indian Air Force and the third to the Border Service Force. The Legacy is based on the ERJ 135 commercial jetliner.
A Russian aircraft leasing firm, Financial Leasing Company, will buy 10 short-haul regional jets from Sukhoi. The company may purchase another 10 RRJ-95s in the coming weeks. The planes will be assigned to Transaero, Aeroflot-North and carriers in Russian Far East. The first four planes are to be delivered in 2008. The deal has been valued at $262 million.
Aerocentury has purchased a Saab 340B from Svenska Volkswagen. MacAir, an Australian regional carrier, has operated the plane since March 2004 and will continue to lease the plane for four more years. Sweden's Skyways Aviation brokered the deal.
Loganair, a Scottish regional carrier and a partner with British Airways, recently signed a new three-year agreement with Saab Aircraft for its aircraft parts exchange program. Loganair has participated in the program for nine years. The contract covers Loganair's fleet of 11 Saab 340Bs and two Saab 340As. The deal has been valued at $6 million.
The Western Australian government earlier this month awarded a five-year contract giving Skywest Ltd. the exclusive right to provide air service in the costal network, which includes eight cities. The contract permits Skywest to provide its first service to Shark Bay and Kalbarri while it expands its frequencies to the other five cities. Skywest flies Fokker 50s and Fokker 100s.
Montreal-based CAE [CAE] reported profits of $17.4 million, or 7 centers per share, on revenue of $223 million in the quarter ending June 30, the company's first quarter of its fiscal year. A year ago, the company earned $20.3 million, 8 cents per share, on sales of $193.6 million. The 15 percent growth in sales has been attributed to an increase in sales of its simulators to both commercial and military clients.
Timco Aviation Services [TMAS] reversed its financial fortunes in the second quarter. The company earned $1.3 million, or a penny a share, on revenue of $81.1 million in the quarter ending June 30. A year ago, the company lost $248,000, or 1 cent a share, on sales of $78.1 million. The increase in sales was attributed to a greater emphasis on providing more line maintenance services. It has opened two more line maintenance stations since the first of the year and it now operates eight stations.