FlightGlobal.com
Home
Premium
Archive
Video
Images
Forum
Atlas
Blogs
Jobs
Shop
RSS
Email Newsletters
You are in:
Home
Aviation History
2003
2003 - 0389.PDF
BUSINESS RESTRUCTURING Boeing unites Australian interests Boeing is wrapping its three Aus tralian businesses - Boeing Aus tralia (BAL), Hawker de Havilland (HdH) and Preston Systems - into one holding company. But the US giant's president for Australia, Andrew Peacock, has dismissed speculation that Boeing is close to floating its Australian interests on the Sydney stock exchange. "IVe put out of my mind doing an IPO [initial public offering] in the next couple of years, but we may look at it again," he says. Boeing Australia Holdings will be a direct subsidiary of Boeing in Chicago and will bring together Brisbane-based aircraft systems specialist BAL, formerly Rockwell and acquired in 1996; Preston, which specialises in airport plan ning and design and was bought in 1999; and Melbourne-based aerostructures, components and maintenance business HdH, which became part of Boeing three years ago. Speaking at last week's Aust ralian air show in Avalon, near Melbourne, Peacock described the move as a "tidying-up" of the company's Australian interests into a single legal entity, simplify ing financial reporting lines. Peacock, a former foreign min ister and ambassador to the USA, is one of several former politicians and diplomats being appointed by Boeing as "country presidents" in key markets, to co-ordinate sales and manufac turing efforts and represent Boeing in government circles. Boeing has almost 3,000 staff in Australia, its largest operation outside the USA. Hawker de Havilland has "aspirations to be a tier one sup plier," says Peacock. "We are currently succeeding in the European context". A third of the company's revenues come from Airbus, for which it produces out board machined wing ribs and composite main landing gear leg fairings for the A320 and com posite main landing gear doors and floor supports on the A330 and A340. INQUIRY JUSTIN WASTNAGE/LONDON EC holds Fairchild Dornier state loan investigation Probe focused on second German government aid package for bankrupt manufacturer The European Commission has launched an official investigation into the second rescue package given by German state and federal governments to bankrupt aircraft manufacturer Fairchild Dornier. The Commission is understood to consider the granting of loan guar antees as unacceptable under state- aid rules, and could theoretically fine any potential future buyer. Last June, the EC approved a joint proposal by the German fed eral government and the Bavaria state government to guarantee 50% of a $90 million loan made by three banks to the company to enable it to continue operations for three months, until a buyer was found. In August, the German govern ment applied for a three-month extension to the loan guarantee while simultaneously authorising the country's labour agency to pay around €20 million ($22 million) to fund 65% of the company's redundancy package. The EC says the second loan guarantee and the support package for the redundan cies constitute state aid, as European Union rules permit only "one-off" payments and not those designed to ensure continuous operation in the absence of either a restructuring or a liquidation plan, which the EC says it has not received. "The Commission doubts that the aid measures could be approved as restructuring aid because there is neither a plan nor a financial partner that would ensure a return to long-term profitability of the company," the EC's competi tion directorate general says. After opening the formal investi gation earlier this month, the Commission will consult Germany and third parties until the end of April, before deciding whether to approve the aid, which it says could take up to 18 months. Bankrupt Fairchild Dornier received two rescue aid packages RESULTS CHRISTINA MACKENZIE / PARIS Europe meets revenue forecasts Provisional financial figures from major European and French aero space companies show that rev enues in 2002 were slightly down on those of 2001, but in line with forecasts. Official figures and com ments from chief executives are due in the first half of March. EADS, in line with predictions, turned in revenues last year of €29.9 billion ($32.4 billion), down almost €1 billion, or 3% compared with 2001. The group took in orders worth €31 billion. Complete revenue figures for 2002 will be released on 10 March. Sagem's defence and security branch saw revenues increase 7% in 2002 to €998 million, generating a net operating profit of €78 million. Dassault Aviation's 2002 turnover amounted to €3.4 billion, slightly down on the 2001 result of €3.5 bil lion. Dassault will release detailed figures on 12 March. Although Airbus and the Aeronautics division were major contributors to EADS registering earnings of €1.4 billion for the year, slightly better than forecast, it was the drop in the number of Airbus aircraft delivered (303 in 2002 against 325 a year earlier) and the drop in the value of the dollar which were largely responsible for a 3% drop in revenue, the group says. Strong Eurocopter results helped EADS's Aeronautics division improve its financial performance slightly in 2002. The group says its Civil and Defence Systems division "managed its recovery and even sur passed its break-even objective". However, "significant losses" occurred in the Space division, due largely to the end of the Ariane 4 launcher programme and the downturn in the civilian telecom munications satellite market. Philippe Camus and Rainer Hertrich, co-chief executives of EADS, say that although 2002 was "a difficult year, EADS reached and even improved on its financial objectives". They add that they are "totally dedicated to maintaining solid margins" through restructur ing and cost cutting. Meanwhile, EADS's visibility in Europe's financial markets will inc rease from 24 March when it app ears for the first time on a German stock exchange index, the MDAX, after the introduction of rules by the Deutsche Borse opening the MDAX to non-German companies. 26 18-24 FEBRUARY 2003 FLIC HT INTERNATIONAL www.fliqhtinternational.com
Sign up to
Flight Digital Magazine
Flight Print Magazine
Airline Business Magazine
E-newsletters
RSS
Events
