FRANCO-RUSSIAN DEAL TARGETS ENGINES
A visit to France by Russian prime minister Vladimir Putin sealed an agreement between Safran and Rostechnologies to collaborate on engines and associated equipment for helicopters including the Kamov Ka-226, Ka-62 and Mil Mi-34.
AVATION PROFITS DROP AFTER SPIN-OFF
Aircraft leasing company Avation posted a 62% drop in net profit to £2.6 million ($4.3 million) in its fiscal year ending 30 June. Revenue increased 224% to £16.3 million from £5 million, but expenses went up across the board. Avation, which owns 11 aircraft, recorded an extraordinary gain the previous year, from the sale of Capital Lease Aviation as a quoted subsidiary on the London Stock Exchange's Alternative Investment Market.
CIMBER STERLING SHARES SLIP AFTER DEBUT
Danish carrier group Cimber Sterling has made its Nasdaq OMX Copenhagen stock exchange debut. The initial public offering was fully subscribed and the share price had been set at DKr10 ($2.03) before opening at DKr10.2, but on first-day trading the stock subsequently declined and stabilised 12% down at DKr8.8 to DKr9. Cimber Sterling's three original shareholders - funds linked to the family of its chief executive - have each had their stakes diluted to 13.19% of the company.
SAAB TAPS CAPITAL MARKETS
Swedish aerospace and defence group Saab has tapped the capital markets to issue SEK 1.1 billion ($157.7 million) in bonds and floating rate notes. Financial director Patrik Tolf says the bonds will resolve short-term funding issues: "The capital markets have improved considerably and there has been huge interest in our issue under the programme. Now we are diversifying our sources of funding and further enhancing our financial flexibility."
LUMEXIS SCORES NEW FUNDING
Lumexis has secured fresh investment of $15 million, led by Washington DC-based private equity fund management company Perseus, and revealed that an undisclosed customer will install the firm's fiber-to-the-screen in-flight entertainment system across a fleet of Boeing 737 family aircraft. Existing investors PAR Capital Management and Zone Ventures took part in the financing round. The investment agreement includes the option for additional investment of up to $7.5 million.
UKRAINE MAY SHIELD ANTONOV FROM COMPETITORS
Ukraine's government is considering measures to protect state-owned Antonov regional aircraft manufacturing against foreign competition, possibly by introducing import taxes on selected Western aircraft, probably Embraer and ATR models, competing with domestically designed models. Separately, Ukraine has proposed enhancing the intergration of Antonov and Russia's United Aircraft Corporation through a share swap.
MALAYSIAN IN P&W JOINT VENTURE
Malaysia Airlines' maintenance and engineering arm, MAS Aerospace Engineering, is to establish a composite repair and engine nacelles overhaul joint-venture with engine-maker Pratt & Whitney at Kuala Lumpur's Subang Airport. MAS also plans to work with German maintenance company Krauss Aviation Technologies to repair parts for engines, landing gears and airframes.