LATECOERE INTERIMS HIT BY SITE TALKS COLLAPSE
French aerostructures and wiring systems maker Latécoère is pushing for advance payments from Airbus to cover its investment in the delayed A380 programme. The firm, which between 2001 and 2006 spent €100 million ($137 million) on A380 research and development but is only repaid on delivery of its aircraft packages, has €361 million net debt and saw first-half earnings before interest nearly halve to €11.1 million despite a 17.3% increase in revenue to €297 million due in part to outlays for its bid to buy Airbus production sites at Meaulte and Saint-Nazaire, a project that collapsed earlier this year. Airbus had hoped to sell the sites as part of its Power8 restructuring plan.
RUSSIA'S OAK TO ESTABLISH COMPOSITES DIVISION
Russia's United Aircraft (OAK) is by year-end to establish a composite parts and structures division. OAK president Alexei Fyodorov says: "We have a lot of expertise in the field of aluminium-lithium alloys, but are lagging considerably behind major aircraft manufacturers as regards carbonfibre reinforced plastics and other composites."
SERBIA TO FORMULATE NEW JAT STRATEGY
Serbia's government is working to devise a new business strategy for national carrier Jat Airways by 23 October after a planned privatisation failed to attract investors. Jat, which became a state-owned joint-stock company on 24 July, attracted interest from prospective investors including Aeroflot, but none bid for the carrier.
AVIATION BANKS 'NOT ACTIVE' IN CURRENT MARKET
Finding debt to finance aircraft acquisitions in the current environment is a major problem that will only get worse during the next 12 months, according to bankers active in the sector. One financier attending last week's European ISTAT conference in Prague told Flight's Commercial Aviation Online: "There is a lot of money going out of the market and not a lot coming in. Out of the 25-30 aviation banks, maybe five are active."
EUROPEAN FIRMS LOOK TO USA, ASIA FOR GROWTH
European aerospace and defence companies are today more focused on securing their existing client bases and winning new sales than developing new products, according to a survey of management at 40 firms by Roland Berger Strategy Consultants. And, given prominent defence acquisition opportunities in countries like the USA and India, and the weakness of the dollar, more than one-third of firms identified Asia and North America as the most attractive regions for investment in both civil and military markets, while less than a quarter view western Europe as most favourable.
FREEFLIGHT IN PRIVATE EQUITY BUYOUT
Waco, Texas-based FreeFlight Systems, a maker of satellite guidance and navigation avionics systems for commercial and military applications, has been bought by a management team led by former Elbit Systems of America chief executive Tim Taylor with the backing of Dallas private equity firm Elm Creek Partners.
CAPITAL BOOST FOR SIMULATOR MAKER
Montreal, Canada-based simulator maker Mechtronix World has attracted a C$39 million ($35.1 million) capital injection by private equity company Richardson Capital. Richardson's chief executive David Brown joins the Mechtronix board.
Source: Flight International
