HINDUSTAN, ROLLS-ROYCE IN VENTURE TALKS
Hindustan Aeronautics has confirmed it is in talks with Rolls-Royce about a joint venture in India to make commercial engine parts for export. The two companies, which first worked together 50 years ago, are thought to be considering a deal that would see each make an initial investment of $4 million. HAL already makes military engine parts under licence from R-R.
ILFC DEBT 'JUNK': MOODY'S
The senior unsecured debt rating of 900-aircraft leasing giant International Lease Finance has been cut to junk by Moody's. The ratings agency says financial support from parent company AIG is "relatively certain" up to November, but "longer-term support from AIG is less certain because of ILFC's diminished strategic importance" to the troubled insurer. Moody's expects ILFC to "record losses as it sells aircraft to generate cash to service debt maturities, in lieu of injections from AIG". ILFC has been for sale since the 2008 financial crisis that led to the near-collapse of AIG.
RYANAIR QUASHES AER LINGUS BID TALK
Irish budget carrier Ryanair has quashed suggestions that it might make a third attempt to take over Aer Lingus, even though a recent deterioration of the flag carrier's financial situation has raised speculation that Ryanair, which has twice been blocked from acquiring Aer Lingus, might be tempted to try again. "In the absence of any decision by the Irish government to sell its 25% stake, a third bid by Ryanair remains highly unlikely," says the carrier.
ST AERO DOWNPLAYS JAL BANKRUPTCY IMPACT
Singapore Technologies Aerospace has downplayed the impact that Japan Airlines' financial woes, which could push it to bankruptcy, will have on the Singapore-headquartered maintenance, repair and overhaul firm. ST Aero says a JAL bankruptcy would have "no material impact on the financial results of ST Aero" because "the current debt with JAL is less than S$5 million [$3.6 million]." The MRO firm performs airframe heavy checks and engine component repair and overhaul work for JAL.
ALLCO SALE TO HONG KONG AVIATION COMPLETED
Hong Kong Aviation has completed for an undisclosed price the purchase from receivership of the Allco aircraft leasing business, including all 68 aircraft in its portfolio. The way to completion was cleared late last year by an Australian court ruling to allow a buyer to continue managing the Allco aircraft. Sydney-based parent Allco Finance Group called in the receivers in late 2008.
AIR NEW ZEALAND LEAVES REGIONAL BODY
Air New Zealand has withdrawn from the Association of Asia Pacific Airlines. The withdrawal of ANZ, which gave no reason for its decision, follows that of Qantas, which says its regional interests are broader than the AAPA's, and leaves the AAPA with just 15 member airlines.
BANK TO SUPPORT AZORES TURBOPROPS
Azores regional carrier SATA Air Acores has secured a €37 million ($53 million) loan "on favourable terms" from the European Investment Bank to acquire four Bombardier Q400 NextGen turboprops for essential public services from Ponta Delgada to destinations within the Azores and to Madeira and the Canary Islands. The aircraft will replace ageing British Aerospace ATPs.
Source: Flight International