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Aviation History
2004
2004-09 - 2237.PDF
BUSINESS ACQUISITION CAE to sell marine unit toL-3 Canada's CAE is to sell its Marine Controls business to L-3 Communications for C$52 mil lion ($42.6 million), to focus on civil and military simulation. The sale ends a series of divest ments, begun in 1998, that has seen Montreal-based CAE sell off its aircraft maintenance and forestry systems businesses. New chief executive Robert Brown says the sales "mark an important first step" in CAE's strategy by honing its focus on the development and use of sim ulation and modelling technology for training. The sale will improve CAE's balance sheet and provide greater flexibility, he says. Marine Controls will be L-3's fourth Canadian acquisition since 2001, when it purchased military aircraft maintenance specialist Spar Aerospace. L-3 acquired sensor supplier Wescam in 2002 and last year it bought Bombardier's military aviation services unit. Last month, L-3 agreed to acquire Northrop Grumman's Canadian navigation systems business. Lockheed Martin, meanwhile, aims to acquire Sippican Holdings, a supplier of naval electronic systems, from private- equity firm the Carlyle Group. STORK STRONGER Stork has reported a 33% growth in profits for the third quarter, its aerospace services division successfully remarket ing Fokker 100s and 50s and winning an order to convert Fokker 60s for aerial surveillance for the Royal Netherlands Air Force. The aerospace industries division delivered the first in flight opening doors for the Joint Strike Fighter on time and the first Dassault 7X business jet moving tail sections. Sales for the quarter stood at €111 million ($141 million), a €16 million drop on the previous year. AMALGAMATION VLADIMIR KARNOZOV / KIEV Ukraine's 'big three' wait for merger confirmation Government set to decide future of nation's flagship aviation companies by year-end Ukraine's government intends to decide by the end of 2004 on mer ging the nation's three flagship avia tion companies - Antonov and the Kharkov State Aviation Manufact uring (KSAMC) and KiGAZ Aviant manufacturing plants. The government has approved the plan, which calls for the state- owned entities to be merged rapidly. Aleksandr Neustroyev, minister for industrial policy, says: "Is Antonov a successful company? The answer is yes, since it has developed several modern aircraft designs in the past few years. Is KSAMC a success story? Yes, since it produced the new designs. But has the Ukrainian avia tion industry achieved its goals? Certainly not, because we have not taken a niche in the global market for regional aircraft." The plan has received enthusias tic support from KSAMC, while the Antonov and Aviant leaders have expressed doubts. Antonov general designer Piotr Balabuyev says that, before merging, efforts should be made to harmonise the finances of the three enterprises. He criticised the plan as being "similar to the collective farm movement in Oleg Shevchenko (left), Piotr Balabuyev and Pavel Naumenko: merger talks Stalin's time; irrelevant to the mar ket-driven economy". Aviant gen eral director Oleg Shevchenko also expressed worries over the need "to proceed so quickly" to a single entity, proposing instead a national corporation uniting not just the three flagships, but also the ZMKB Progress and Motor-Sich aero engine companies, as well repair stations. KSAMC general director Pavel Naumenko has been put forward to head the merger. He says the cre- FLOTATION HOWARD GETHIN / MOSCOW Irkut clear for US share offer Russian aircraft manufacturer Irkut has been cleared to go ahead with its first American Depositary Receipts (ADR) offering, following approval this week by Russia's Federal Financial Markets Service. The company, which is based around the plant that produces the Sukhoi Su-30MK fighter, will be unable to place more than 25% due to state restric tions on foreign ownership of defence or strategic companies. The law is under consideration, however, and may be changed in the near future, allowing up to 49% of a strategic enterprise to be foreign-owned. A conversion of shares to ADRs by Irkut could be possible as soon as the second half of November following approval by the US Securities Exchange Commission, says Irkut, quoted by business daily Vedomostion 2 November. A listing on an exchange is unlikely before 2005. Irkut, Russia's only major aerospace firm to have a listing, has to decide on which stock exchange to place shares. In September the company said it wished to convert its entire 25% free float in first level ADRs. Russian media reports say the company has already filed to the US Securities and Exchange Commission for approval. Irkut's first share issue in Russia in March was of 23.3% of its shares for $127 million, bought by Russian and foreign (non-US) buyers. ation of a single entity will lead to a Western-style company uniting air craft development, production, sales and after-sales support, shift ing the Ukrainian aviation industry towards a system that is "conve nient to the customer". But he adds: "We'd better do it as soon as possible, otherwise the Ukrainian industry, which produces about 10 aircraft a year, will completely lose its competitiveness." CIS aviation authorities antici pate a reduction in the number of operational Antonov aircraft from 7,600 to less than 2,000 by 2010. In the last five years Ukrainian manu facturers have produced just 21 new Antonov aircraft, and Russian com panies another 24, including 12 An-3 turboprop refurbishments of the An-2 piston-powered biplane. The merger will focus on produc tion and improvement of the An- 148 and An-140 regional aircraft, and the An-74 and An-32 light tacti cal transports and their derivatives; production of the An-70 medium airlifter; and supporting An-124-100 Ruslan super-heavy freighters. Once the merger is complete efforts will be made to find international part ners, particularly among Russian companies and those working with Antonov aircraft worldwide, includ ing Iran's HESA and various Western suppliers. 24 9-15 NOVEMBER 2004 FLIGHT INTERN ATION AL www.flightinternational.com
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