Daily flights begin June 10th. Miami is the sixth destination for Lufthansa’s A380 - New First Class cabin now
available to Miami travelers.
On March 31st 2011, Lufthansa announced that it will be the
first airline to offer scheduledAirbusA380 services to Miami
with daily flights between Frankfurt and the “Sunshine State”
beginning June 10, 2011. Flight LH463 will leave Miami at
16.10 and arrive in Frankfurt at 07.15 the following day. The
return flight LH462 will depart Frankfurt at 09.55 and arrive
back into Miami at 13.50. Starting immediately, these flights
are available for booking on www.lufthansa.com with rates
from Miami to Frankfurt starting at $614 (one way fare
based on roundtrip purchase, including taxes).
“We are extremely excited to introduce our new, flagshipA380 aircraft as the very first in the Miami market,” said Jens Bischof, Vice President, TheAmericas for
Lufthansa. “I applaud Miami InternationalAirport’s management team for their determination to becomeA380-ready. We share in their excitement and are both committed to Miami’s community of Global Travelersin both the business and leisure markets. Very soon, Europe’s most highly regarded airline will serve Miami with the
industry’s most advance aircraft to date.”
“Lufthansa;s announcement of theA380 coming to MIAis a pinnacle moment we have eagerly anticipated for many years,” said Miami-DadeAviation Director Jose
Abreu. “We are honored to be one of the first U.S. airports Lufthansa has chosen forA380 service and we greatly look forward to welcoming the historic first flight
from Frankfurt in June.”
GMAA Newsletter: In this Issue
Welcoming Letter from
GMAAPresident
MRO Madness in Miami!
Bulls Shall Not Fear Tigers and
Dragons
SaferAviation in LatAm
GMAA College News
Midsummer Golf Tournament
The 2011 GMAA Board Members
President
Marc Henderson
MRO Madness in Miami! by Dan Sullivan
March Madness for college basketball is over but one of the most important aviation
shows in 2011 is upon us.April 12 through the 14th brings thousands of the aviation
industries finest to Miami. The scene is both exhilarating as well by Thursday, exhausting, and by Thursday night, the madness is subsiding.
The meeting site changes every year but it draws most all that work or are affiliated
in the aviation business. It is branding, marketing, networking, deal making allrolled
into one location.
The largest manufacturers and companies in the world and the smallest repair and
overhaul shops will all be at the Miami Convention Center just a short walk from
South Beach.
If you are looking for a specialty item regarding aviation, it will be at the convention Center.
You will find the CEO’s, Presidents, VPs and VIPs you could not reach by a typical cold call.All will be selling
and marketing their business solutions to all who pass by booths and displays that attract and dazzle. It is a
learning experience to say the least and the latest and the greatest will be put on display.
The Technology and knowhow, with some of the industries brightest people are here to show you products
and services that will save you money, enhance your business and bottom line.
The sales and marketing does not stop when the hall closes down. Companies will schedule parties and
events, into the evening and by the end of the week, all will be glad they made it through the sometimes 18
hours each show day brings.
And, if your belief is that golf and business is truly a relationship sport, there is golf at the Doral on Monday to
loosen up the long week ahead.
If it is aviation you fancy and the engineering that goes into flying machines, this is where you will find the who,
and the what, that “keeps them flying”.So enjoy, learn, network and develop your business, because it is another year and another city before the next madness comes around.
Bulls Shall Not Fear Tigers and the Dragons by Oscar S. Garcia
It is not big news that the Indian Tiger and Chinese Dragon
economies are surging, aerospace sector included. They are regarded globally as the emerging forces to watch, contend with and
especially in the Chinese Dragon’s case, somewhat fear.
The UnitedStates’ economy is usually the comparison benchmark,
the economy atrisk of losing its preeminence.The aerospace, defense and specially the airtransportation sectors are oftentimes at
the top of comparisons charts and the pinnacle of future “world
dominance” discussions and analysis.
My opinion is:EasyTigers…and Calm down Dragons! here comes
the Americas, may we say “Bulls”?. Apples to apples, one must
measure China and India not only with the USA, but with “The
Americas”, in hemispherical terms, from Chile toAlaska. Doing so,
an interesting picture emerges. TheAmericas is home to close to
1 Billion people and produces around slightly over 50% of the
world’s total GDP. If we look at growth, once the LatinAmerican and Caribbean basins are added to the North
American giants (Canada, USA, Mexico), we are talking 5-6% projected for the next 20 years on a mature
and already large industrial base.
If we speak air transportation aerospace, defense and space sectors, we approach closer to the 60% mark in
global GDP. In Layman’s’ terms; out of the roughly 2 billion passenger enplanements in the world, a little over
1 billion did so in theAmericas. Out of the slightly over 41,000 airtransport aircraft in the world, north of 22,000
are in theAmericas. More than 75% of the general aviation aircraft in the planet are in theAmericas. The list
goes on!
So, what do we do now? Well, let’s keep building Boeing, Cessna, Embraer, Bombardiers... make sure the
grand LATAM airline merger happens, open wide the hemisphere's skies and keep outsourcing aerospace
and defense south of Mexico, to CentralAmerica and all the way down to Chile. Like we say in Latin culture,
be careful trying to outrun a big bull!
OscarS. Garcia is the Chairman of InterFlight Global Corporation; a globally focused Miami based aerospace
industry advisory and management consulting firm.
oscargarcia@interflightlobal.com | www.interflightglobal.com | +1 (305) 400 6789 / 6749
Working for Safer Aviation in Latin America By Alex de Gunten
As Executive Director of ALTA, the Latin American and Caribbean Air
TransportAssociation, which represents more than 90 percent of the region’s commercial air traffic, I am proud to report that there were no
major accidents or hull losses byALTA’s member carriers during the past
two years. Clearly, we need to continue the positive trend.
In partnership with the ICAO Regional Aviation Safety Group – PanAmerica,ALTAwill be sponsoring the 2ndAviationSafetySummit focused entirely on thePan-American region.
The Summit will present specific strategies to address the top aviation safety risk areas and provide an
overview of the region’s safety statistics and other RASG-PAinitiatives to enhance flight safety.
The 2nd Pan American Aviation Safety Summit 2011 will be held June 15-17, 2011 in Mexico City, Mexico.
For more information, visit http://www.alta.aero/safety/2011/home.php
Miami-Dade College Experienced the 2011
State-of-the-art PortsBriefing
Eight students from the Miami Dade College Eig-Watson School of Aviation were
invited to be guests of theWorldTrade Center Miami to attend theState-of-the-Ports
Briefing on February 9, 2011. In addition to learning about Miami InternationalAirport
and the Port of Miami, the students had the opportunity to experience networking
since more than 1200 industry professionals attended this event. Most notably, the
students met Jose Abreu, Miami Dade Aviation Department Director; Frank Nero,
President and CEO of the Beacon Council; and former Mayor CarlosAlvarez.
Diana D. Lewis, A.A.E | Director, MDC Eig-Watson School of Aviation | dlewi4@mdc.edu
George T. Baker Aviation School Goes Nuclear
If BakerAviation getting an MD-80 and a 737 was not enough, they are now getting a Hercules Nuclear Missile! Well, kind of. BakerAviation will be assisting the National Park Service, U.S. Department of the Interior, on restoring a Cold War Hercules Nuclear Missile that will be put on display at a renovated NIKE Missile
Base in Everglades National Park. The restoration project will take place this summer. BakerAviation students and local business partners will work collaboratively in order to see this project through fruition. If you
are interested in assisting with this project, please contact BakerAviation.
Sean Gallagan, Ph.D. | Principal George T. Baker Aviation School | sgallagan@dadeschooos.net
2nd Vice President
Kristen Jurn
1st Vice President
Liz Reyes
Treasurer
Michael Schmidt
3rd Vice President
Benny Benitez
Secretary
Robert Fairless
Assistant to Board
Connie Devine
Director
Robert Christensen
Director
Capt. Ed Cook
Director
Rolando Damas
Director
Christopher Furlan
Director
Marc Henderson
Director
Derry Huff
Director
Sean Gallagan
Director
Nelson Gonzalez
Director
John Jackson
Director
Brian Loomer
Director
Carla Pinto
Director
Mansour Rasnavad
Welcoming Letterfrom the GMAA President, Mr. Marc Henderson
Blue Skies to all of you and welcome to our new newsletter, Wings.
This quarterly publication is designed to keep you informed about aviation issues from
the airline, airport and aviation school perspective amongst the companies and
individuals who comprise the Greater MiamiAviationAssociation.
In this edition you will find an article from George T. Baker Aviation School Principal
Sean Gallagan. Principal Gallagan has been fighting hard to maintain a high standard
at Baker in the face of trying fiscal times for the Miami-Dade School District of which
Baker is a part. In the meantime he has managed to secure a MD-80 for his young
charges to take apart and study. And, he is working to get another aircraft, a 737 to add to his growing stable
of flying machines. And, he is planning to go nuclear with a Nike missile!
No active warhead for this unique piece to an aviation school, but unique for a school it soon will be.
Aviation at the college level continues shine, making the future bright for the next generation of aviators. See
the achievements by the Flying Lions of Florida Memorial University and students from the Miami Dade College
Eig-Watson School of Aviation in the aviation school section. ALTA’s Executive Director Alex de Gunten speaks
of the perfect record flight safety record its carriers had in 2010 and the organization’s sponsorship of the 2nd
Aviation Safety Summit later this year.
On the airport front, read the Associated Press story about the Airbus380. Lufthansa will bring this massive
plane to Miami International Airport on June 10 from Frankfurt, marking the fifth U.S. airport, by that time, to
have regularly scheduled service by the A380.
Please note that you comments and articles about aviation are welcome. We want to hear from you. Submit
an article or tell us what’s on your mind aviationally to secretary@gmaa.aero. Keep your sights high and
aviation achievements higher.
Marc T. Henderson | President | Greater Miami Aviation Association
Wings is a Quarterly Publication of the Greater MiamiAviationAssociation | All rights reserved for the GMAA, 2011 | Designed by Enrique Perrella | April, May, June 2011
GMAA’s Midsummer Golf Tournament
Lufthansa to introduce first-ever A380 service to Miami
Tuesday, July 2, 2013
InterFlight Global Publishes Americas Aerospace Vs China and India Competitiveness Short Article in GMAA’s Newsletter
The Bull Shalt Not Fear the Tiger and the Dragon
By Oscar S. Garcia, MBA, ATP Boeing 747/777
It is not big news that the Indian Tiger and Chinese Dragon economies are surging, aerospace sector
included. They are regarded globally as the emerging forces to watch, contend with and especially in the
Chinese Dragon’s case, somewhat fear.
The United States’ economy is usually the comparison benchmark, the economy at risk of losing its
preeminence. The aerospace, defense and specially the air transportation sectors are oftentimes at the
top of comparisons charts and the pinnacle of future “world dominance” discussions and analysis.
My opinion is: Easy Tigers…and Calm down Dragons! here comes the Americas, may we say “Bulls”?.
Apples to apples, one must measure China and India not only with the USA, but with “The Americas”, in
hemispherical terms, from Chile to Alaska. Doing so, an interesting picture emerges. The Americas is
home to close to 1 Billion people and produces around slightly over 50% of the world’s total GDP. If we
look at growth, once the Latin American and Caribbean basins are added to the North American giants
(Canada, USA, Mexico), we are talking 5-6% projected for the next 20 years on a mature and already
large industrial base.
If we speak air transportation aerospace, defense and space sectors, we approach closer to the 60%
mark in global GDP. In Layman’s’ terms; out of the roughly 2 billion passenger enplaments in the world,
a little over 1 billion did so in the Americas. Out of the slightly over 41,000 air transport aircraft in the
world, north of 22,000 are in the Americas. More than 75% of the general aviation aircraft in the planet
are in the Americas. The list goes on!
So, what do we do now? Well, let’s keep building Boeing, Cessna, Embraer, Bombardiers... make sure
the grand LATAM airline merger happens, open wide the hemisphere's skies and keep outsourcing
aerospace and defense South of Mexico, to Central America and all the way down to Chile. Like we say
in Latin culture, be careful trying to outrun a big bull! ,
Oscar S. Garcia is the Chairman of InterFlight Global Corporation; a
globally focused Miami based aerospace industry advisory and
management consulting firm
Contact: oscargarcia@interflgithglobal.com
www.interflightglobal.com +1-305-400-6789/6749
By Oscar S. Garcia, MBA, ATP Boeing 747/777
It is not big news that the Indian Tiger and Chinese Dragon economies are surging, aerospace sector
included. They are regarded globally as the emerging forces to watch, contend with and especially in the
Chinese Dragon’s case, somewhat fear.
The United States’ economy is usually the comparison benchmark, the economy at risk of losing its
preeminence. The aerospace, defense and specially the air transportation sectors are oftentimes at the
top of comparisons charts and the pinnacle of future “world dominance” discussions and analysis.
My opinion is: Easy Tigers…and Calm down Dragons! here comes the Americas, may we say “Bulls”?.
Apples to apples, one must measure China and India not only with the USA, but with “The Americas”, in
hemispherical terms, from Chile to Alaska. Doing so, an interesting picture emerges. The Americas is
home to close to 1 Billion people and produces around slightly over 50% of the world’s total GDP. If we
look at growth, once the Latin American and Caribbean basins are added to the North American giants
(Canada, USA, Mexico), we are talking 5-6% projected for the next 20 years on a mature and already
large industrial base.
If we speak air transportation aerospace, defense and space sectors, we approach closer to the 60%
mark in global GDP. In Layman’s’ terms; out of the roughly 2 billion passenger enplaments in the world,
a little over 1 billion did so in the Americas. Out of the slightly over 41,000 air transport aircraft in the
world, north of 22,000 are in the Americas. More than 75% of the general aviation aircraft in the planet
are in the Americas. The list goes on!
So, what do we do now? Well, let’s keep building Boeing, Cessna, Embraer, Bombardiers... make sure
the grand LATAM airline merger happens, open wide the hemisphere's skies and keep outsourcing
aerospace and defense South of Mexico, to Central America and all the way down to Chile. Like we say
in Latin culture, be careful trying to outrun a big bull! ,
Oscar S. Garcia is the Chairman of InterFlight Global Corporation; a
globally focused Miami based aerospace industry advisory and
management consulting firm
Contact: oscargarcia@interflgithglobal.com
www.interflightglobal.com +1-305-400-6789/6749
Oriens looks west through new relationship with InterFlight Global Corporation
Oriens Advisors, aviation consultants specialising in the entry level jet sector, has signed a Memorandum of Understanding with Miami based InterFight Global Corporation, IFG. Oriens, predominantly European focused, can now broaden its spectrum in terms of international market presence. “Oriens has focused mainly on the European value chain in the cost-effective personal jet transportation sector. The agreement with IFG broadens our range giving us feet on the ground in two of the most important international aviation marketplaces,” says Edwin Brenninkmeyer CEO of Oriens Advisors. 
“Whilst IFG has global reach, they have a very strong US focus. Now, with Oriens as a partner, IFG will be better positioned to support clients looking for opportunities in Europe and we hope to add value to their existing client services,” he continues. The transatlantic relationship will see Oriens supplying a number of complementary services to IFG’s existing offering. These will include provision of qualified company directors on an advisory or executive basis; supporting IFG clients with European commercial due diligence; sourcing funding and advising on investment pitches. Oriens’ principals have significant experience in financial and insurance risk management, which complements IFG’s aviation risk skill sets.
Edwin Brenninkmeyer
CEO of Oriens Advisors
“Whilst IFG has global reach, they have a very strong US focus. Now, with Oriens as a partner, IFG will be better positioned to support clients looking for opportunities in Europe and we hope to add value to their existing client services,” he continues. The transatlantic relationship will see Oriens supplying a number of complementary services to IFG’s existing offering. These will include provision of qualified company directors on an advisory or executive basis; supporting IFG clients with European commercial due diligence; sourcing funding and advising on investment pitches. Oriens’ principals have significant experience in financial and insurance risk management, which complements IFG’s aviation risk skill sets.Edwin Brenninkmeyer
CEO of Oriens Advisors
“We expect the partnership to evolve further as we work on each project,” says Oscar S Garcia Chairman and CEO of IFG. “We expect our mutual clients to include governments, airports, lobbyists, investors, and ultimately all users of private aviation at all levels,” he continues.
Oriens and IFG have already begun working with mutual clients including a UK light jet operation that was looking for operational support. Together IFG and Oriens are able to move quickly to help the client find an AOC holder with which to form an alliance.
Additionally IFG has been proposing to a Southern European investment fund a joint board advisory role which will see one IFG and one Oriens director advising as required in their newly formed ELJ air charter business. “This demonstrates how the relationship between IFG and Oriens can expand our network, and is just the beginning of what we hope will be a long term relationship,” says Brenninkmeyer. “It gives me tremendous pleasure to be able to inform our clients and prospective clients that we are working with IFG. This wealth of industry expertise will enable us to better serve our clients.”
Oscar S Garcia
IFG's Chairman and CEO
Oriens and IFG have already begun working with mutual clients including a UK light jet operation that was looking for operational support. Together IFG and Oriens are able to move quickly to help the client find an AOC holder with which to form an alliance.
Additionally IFG has been proposing to a Southern European investment fund a joint board advisory role which will see one IFG and one Oriens director advising as required in their newly formed ELJ air charter business. “This demonstrates how the relationship between IFG and Oriens can expand our network, and is just the beginning of what we hope will be a long term relationship,” says Brenninkmeyer. “It gives me tremendous pleasure to be able to inform our clients and prospective clients that we are working with IFG. This wealth of industry expertise will enable us to better serve our clients.”
Oscar S Garcia
IFG's Chairman and CEO
IFG and Oriens have both been involved in the ELJ era since the late 90s and it is through conferences and events that the original relationship was formed. Garcia comments “I believe experience and value to clients comes from first hand experience so I take pride in being associated with Oriens.
About Oriens
Oriens Advisors counsel European businesses operating in the light jet arena to achieve commercial success by offering a full range of advice and consultancy across the complete aviation spectrum.
Oriens’ expertise covers lobbying for funding; marketing strategy creation, diversification to generate cash flow; guidance on lobbying regulatory bodies, strategic analysis of green issues, scrutinising infrastructure or implementation of IT amongst others.
Oriens is privately funded by Brenninkmeyer and two fellow directors Archie Garden and Michael Ricks. Edwin is a former venture capitalist, previously with Entrepreneurs Fund. He is also on the board of LinearAir, an established US air taxi operator. Garden hails from a financial services background with over 20 years of financial and IT experience having worked at Barclays and Standard Bank. Ricks is a former partner at Deloitte Consulting and KPMG Consulting and an expert on business strategy and revenue generation.
About IFG
InterFlight Global (“IFG”) is one of the world’s leading Commercial Aviation and Aerospace advisory and consulting firms. Since 1992, IFG principals have been involved in most sectors of the aviation and aerospace industries as advisors and consultants to shareholders, senior executives, Government institutions, Civic Foundations and investors, alike. IFG provides its clients with expertise tailored to their business needs from its downtown Miami headquarters and its affiliated regional offices worldwide. IFG provides solutions that combine a true global perspective with a detailed local outlook.
Click here for the Press Release Version
Click here for the Article Released
Oscar S. Garcia and IFC Article- 2009 Review of Latin American Air Transport Sector
Poder 360, la revista digital Argentina es una autoridad mediática en el sector de negocios en Latino America.
"Poder 360 y su equipo de excelentes reporteros, como Gustavo Stok, no solo reportan rigurosamente las noticias fundamentales de empresa y negocio de la región, sino que además, proporcionan visión a futuro con proyecciones de lideres en diversos sectores" Oscar García, Presidente de InterFlight Consulting comenta. " es un honor para mi aportar mis conocimientos y opiniones, así como predicciones del sector aeronáutico a Poder, desde hace mas de tres años"
Este importante articulo, contiene visiones claves para el sector aeronáutico del Transporte Aéreo útil para entidades privadas, publicas y mixtas. Algunas de las predicciones hechas por Oscar García y basadas en la propiedad intelectual de IFC, como los ajustes de capacidad y resultados del primer trimestre de 2010, ya se han corroborado en la realidad del sector.
For the Complete Article online Please Click Leer más:
http://www.poder360.com/article_detail.php?id_article=4090&pag=4#ixzz0lB7bif 5y
http://www.poder360.com/article_detail.php?id_article=4090&pag=4#ixzz0lB7bif 5y
Read the Article Below:
AEROLÍNEAS
Ruta despejada
Tras esquivar la crisis, las aerolíneas latinoamericanas están preparadas para captar un flujo de pasajeros que promete crecer con fuerza en la región durante los próximos años.
Hubo turbulencias y los cinturones de seguridad debieron permanecer ajustados. Pero las aerolíneas latinoamericanas pudieron atravesar con éxito las nubes negras de 2009. Sólo superada por Oriente Medio, América Latina ha sido la segunda mejor área en el mundo en resultados para las líneas aéreas durante la crisis de 2008-2009. "Las aerolíneas ajustaron la capacidad, pero sólo ha sido necesaria ajustarla en un 2% o 3%", dice Oscar García, titular de Interflight Consulting, en Miami. "Y se ha aprovechado la crisis para desprenderse de la flota más antigua, la que más consume y más gasta". El ejemplo más contundente de esa estrategia lo dio Lan. La compañía comandada por Enrique Cueto ejerció en diciembre pasado una histórica orden de compra por 30 modernos aviones Airbus A320, los que se incorporarán en forma gradual a la flota entre 2011 y 2016. Al mismo tiempo, Lan negoció la venta de 5 Airbus A318 a partir de 2011.
La buena nueva es que la expansión de Lan, al igual que la de las otras principales líneas aéreas de la región, responde a las buenas perspectivas que asoman para el negocio aerocomercial latinoamericano en los próximos años. Según la Asociación Internacional de Transporte Aéreo (IATA, por sus siglas en inglés), mientras las aerolíneas latinoamericanas cerrarán 2010 con ganancias de 100 millones de dólares, para las europeas se prevén pérdidas por 2.500 millones de dólares. Los números de enero ya empiezan a corroborar las buenas expectativas: de acuerdo a datos de la Official Airline Guide (OAG), el número de asientos en la región ascendió a 10,5 millones, un 5,4% más que en el mismo mes de 2009.
Buena parte de ese crecimiento es apuntalado por la revitalización de la industria turística en América Latina. México, Perú, Chile y el Caribe asoman con buenas perspectivas, pero será Brasil, sin dudas, la estrella de la región. El Mundial de Fútbol de 2014 y los Juegos Olímpicos de Rio de Janeiro en 2016 constituirán dos imanes que atraerán un enorme flujo de pasajeros hacia el principal mercado aerocomercial de América Latina durante los próximos años.
Ese prometedor pastel ya está generando movimientos. Un ejemplo: en diciembre pasado, TAM, la aerolínea de bandera de facto de Brasil, adquirió en 7,3 millones de dólares la pequeña Pantanal Linhas Aéreas, cuyo principal atractivo es que disponía de 196 slots (derechos de aterrizaje y despegue) en el estratégico aeropuerto de Congonhas, en Sao Paulo. Al quedarse con 135 de esos slots, TAM alcanza un beneficio doble: impide el avance de competidores en el aeropuerto más rentable del país y se prepara para sacar una mayor tajada del flujo de pasajeros creciente que se espera en Congonhas en los próximos años.
Además de TAM, el mercado aerocomercial brasileño está cubierto por Gol, aerolínea de bajo costo. Luego de los problemas que le significó la compra de Varig en 2007, la principal compañía low cost de Brasil registró buenos resultados el año pasado con el redireccionamiento de la oferta de vuelos internacionales a los domésticos. Además, la empresa comenzó a cobrar tarifas diferenciadas para atender a clientes de distintos perfiles. El buen comportamiento de las aerolíneas de Brasil demorará el esperado aterrizaje de Lan en ese país. "El costo-beneficio en la batalla para entrar a Brasil en los próximos cinco años es alto para Lan; lo que hará la empresa es acorralar a Brasil en los mercados aledaños, y recién en 3 ó 5 años, cuando esté bien consolidada como la aerolínea de la región, podrá lanzar un ataque más frontal", dice García. Por lo pronto, tras la licitación de frecuencias realizada en Chile en diciembre pasado, Lan se adjudicó siete rutas de utilización inmediata a Brasil y otras siete a partir de octubre de este año.
En México, el otro gran mercado de la región, la caída en el turismo por la crisis internacional y el efecto de la gripe A derivó en un sector en crisis durante 2009. En ese marco, las dos grandes aerolíneas del país trazaron distintas estrategias. Además de continuar apostando al segmento low cost con Click, la gran jugada de Mexicana de Aviación fue ingresar a la alianza One World para incrementar el tráfico de pasajeros y el número de vuelos. Esa estrategia va en línea con la intención de internacionalizar a la compañía desde que fue adquirida por el grupo hotelero local Posadas. Aeroméxico, en tanto, no participa del mercado de bajo costo y apunta a fortalecerse en el mercado doméstico. Son estrategias complementarias y eso hace que algunos analistas proyecten una alianza de ambas compañías en el mediano plazo.
Esa consolidación ya se dio en el segmento de las líneas aéreas de bajo costo en los últimos dos años. Y el todavía exceso de oferta en una economía deprimida augura más movimientos. "Un tercio de las aerolíneas de bajo costo será absorbido por Mexicana de Aviación y Aeroméxico, un tercio desaparecerá y el otro seguirá, pero con rutas muy específicas", dice García, de Interflight Consulting.
Más al sur, la colombiana Avianca se está convirtiendo en un gigante en el mercado aeronáutico de América Latina. La aerolínea -forma parte del grupo Sinergy, en el que también están Ocean Air, de Brasil; Vipsa y AeroGal, de Ecuador; y Sam, de Colombia- completará en los próximos años una ambiciosa renovación de flota que inició en 2007 con órdenes para 10 Airbus A330 y unos 50 aviones de la familia A320. Hacia fines del año pasado, Avianca ya había recibido cinco de esos A330 y 16 A320, y otros 10 serán entregados durante 2010.
A eso se le suma que en el segundo semestre de este año Avianca aportará el 67% de las acciones a un nuevo holding denominado Holdco, en alianza con la centroamericana Taca. Es una sociedad que irrumpirá entre las líderes de América Latina: con sus cuatro centros de conexiones -Bogotá, Lima, El Salvador y San José-, Avianca y Taca estarán en capacidad de ofrecer a sus clientes servicios a más destinos que cualquier otra aerolínea en América Latina. Es una ventaja clave para Avianca a la hora de competir con Lan en la batalla por convertirse en la línea aérea de la región en los próximos años.
La contracara de Avianca parece ser Aerolíneas Argentinas. Tras la pésima administración del grupo español Marsans, la compañía en manos del Estado argentino desde comienzos de 2009 no levanta vuelo. Según un estudio de la consultora Oliver Wyman realizado para Aerolíneas Argentinas, la empresa arrojará pérdidas por más de 1.000 millones de dólares durante los próximos cuatro años. "Se logró un mayor cumplimiento de horarios y la ocupación va aumentando por, entre otras cuestiones, el temor a las presiones oficiales sobre Lan -su principal competidor en el mercado argentino- y los conflictos sindicales que sufrió esa compañía", dice Luis Rizzi, ex gerente general de Aerolíneas Argentinas y actual consultor miembro de la internacional Red de Investigación del Transporte Aéreo, en Buenos Aires. "Pero la situación económica de Argentina y de Aerolíneas, en particular, indica que una renovación de la flota parece fantasiosa".
Tras superar la zona de turbulencias, el viaje de las aerolíneas de la región promete ser más placentero durante los próximos años. Pero el cinturón deberá permanecer ajustado. "A pesar de que las aerolíneas de la región redujeron capacidad y ganaron ocupación, los ingresos bajaron porque se redujo lo que se paga por los billetes", dice García, de Interflight Consulting. "Ahora, ante la esperada mayor demanda, hay que resistir la tentación de añadir capacidad entre un año y año y medio para que las aerolíneas puedan tener un respiro de beneficios".
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http://www.poder360.com/article_detail.php?id_article=4090&pag=5#ixzz0lB88C14K
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Ruta despejada
Tras esquivar la crisis, las aerolíneas latinoamericanas están preparadas para captar un flujo de pasajeros que promete crecer con fuerza en la región durante los próximos años.
Hubo turbulencias y los cinturones de seguridad debieron permanecer ajustados. Pero las aerolíneas latinoamericanas pudieron atravesar con éxito las nubes negras de 2009. Sólo superada por Oriente Medio, América Latina ha sido la segunda mejor área en el mundo en resultados para las líneas aéreas durante la crisis de 2008-2009. "Las aerolíneas ajustaron la capacidad, pero sólo ha sido necesaria ajustarla en un 2% o 3%", dice Oscar García, titular de Interflight Consulting, en Miami. "Y se ha aprovechado la crisis para desprenderse de la flota más antigua, la que más consume y más gasta". El ejemplo más contundente de esa estrategia lo dio Lan. La compañía comandada por Enrique Cueto ejerció en diciembre pasado una histórica orden de compra por 30 modernos aviones Airbus A320, los que se incorporarán en forma gradual a la flota entre 2011 y 2016. Al mismo tiempo, Lan negoció la venta de 5 Airbus A318 a partir de 2011.
La buena nueva es que la expansión de Lan, al igual que la de las otras principales líneas aéreas de la región, responde a las buenas perspectivas que asoman para el negocio aerocomercial latinoamericano en los próximos años. Según la Asociación Internacional de Transporte Aéreo (IATA, por sus siglas en inglés), mientras las aerolíneas latinoamericanas cerrarán 2010 con ganancias de 100 millones de dólares, para las europeas se prevén pérdidas por 2.500 millones de dólares. Los números de enero ya empiezan a corroborar las buenas expectativas: de acuerdo a datos de la Official Airline Guide (OAG), el número de asientos en la región ascendió a 10,5 millones, un 5,4% más que en el mismo mes de 2009.
Buena parte de ese crecimiento es apuntalado por la revitalización de la industria turística en América Latina. México, Perú, Chile y el Caribe asoman con buenas perspectivas, pero será Brasil, sin dudas, la estrella de la región. El Mundial de Fútbol de 2014 y los Juegos Olímpicos de Rio de Janeiro en 2016 constituirán dos imanes que atraerán un enorme flujo de pasajeros hacia el principal mercado aerocomercial de América Latina durante los próximos años.
Ese prometedor pastel ya está generando movimientos. Un ejemplo: en diciembre pasado, TAM, la aerolínea de bandera de facto de Brasil, adquirió en 7,3 millones de dólares la pequeña Pantanal Linhas Aéreas, cuyo principal atractivo es que disponía de 196 slots (derechos de aterrizaje y despegue) en el estratégico aeropuerto de Congonhas, en Sao Paulo. Al quedarse con 135 de esos slots, TAM alcanza un beneficio doble: impide el avance de competidores en el aeropuerto más rentable del país y se prepara para sacar una mayor tajada del flujo de pasajeros creciente que se espera en Congonhas en los próximos años.
Además de TAM, el mercado aerocomercial brasileño está cubierto por Gol, aerolínea de bajo costo. Luego de los problemas que le significó la compra de Varig en 2007, la principal compañía low cost de Brasil registró buenos resultados el año pasado con el redireccionamiento de la oferta de vuelos internacionales a los domésticos. Además, la empresa comenzó a cobrar tarifas diferenciadas para atender a clientes de distintos perfiles. El buen comportamiento de las aerolíneas de Brasil demorará el esperado aterrizaje de Lan en ese país. "El costo-beneficio en la batalla para entrar a Brasil en los próximos cinco años es alto para Lan; lo que hará la empresa es acorralar a Brasil en los mercados aledaños, y recién en 3 ó 5 años, cuando esté bien consolidada como la aerolínea de la región, podrá lanzar un ataque más frontal", dice García. Por lo pronto, tras la licitación de frecuencias realizada en Chile en diciembre pasado, Lan se adjudicó siete rutas de utilización inmediata a Brasil y otras siete a partir de octubre de este año.
En México, el otro gran mercado de la región, la caída en el turismo por la crisis internacional y el efecto de la gripe A derivó en un sector en crisis durante 2009. En ese marco, las dos grandes aerolíneas del país trazaron distintas estrategias. Además de continuar apostando al segmento low cost con Click, la gran jugada de Mexicana de Aviación fue ingresar a la alianza One World para incrementar el tráfico de pasajeros y el número de vuelos. Esa estrategia va en línea con la intención de internacionalizar a la compañía desde que fue adquirida por el grupo hotelero local Posadas. Aeroméxico, en tanto, no participa del mercado de bajo costo y apunta a fortalecerse en el mercado doméstico. Son estrategias complementarias y eso hace que algunos analistas proyecten una alianza de ambas compañías en el mediano plazo.
Esa consolidación ya se dio en el segmento de las líneas aéreas de bajo costo en los últimos dos años. Y el todavía exceso de oferta en una economía deprimida augura más movimientos. "Un tercio de las aerolíneas de bajo costo será absorbido por Mexicana de Aviación y Aeroméxico, un tercio desaparecerá y el otro seguirá, pero con rutas muy específicas", dice García, de Interflight Consulting.
Más al sur, la colombiana Avianca se está convirtiendo en un gigante en el mercado aeronáutico de América Latina. La aerolínea -forma parte del grupo Sinergy, en el que también están Ocean Air, de Brasil; Vipsa y AeroGal, de Ecuador; y Sam, de Colombia- completará en los próximos años una ambiciosa renovación de flota que inició en 2007 con órdenes para 10 Airbus A330 y unos 50 aviones de la familia A320. Hacia fines del año pasado, Avianca ya había recibido cinco de esos A330 y 16 A320, y otros 10 serán entregados durante 2010.
A eso se le suma que en el segundo semestre de este año Avianca aportará el 67% de las acciones a un nuevo holding denominado Holdco, en alianza con la centroamericana Taca. Es una sociedad que irrumpirá entre las líderes de América Latina: con sus cuatro centros de conexiones -Bogotá, Lima, El Salvador y San José-, Avianca y Taca estarán en capacidad de ofrecer a sus clientes servicios a más destinos que cualquier otra aerolínea en América Latina. Es una ventaja clave para Avianca a la hora de competir con Lan en la batalla por convertirse en la línea aérea de la región en los próximos años.
La contracara de Avianca parece ser Aerolíneas Argentinas. Tras la pésima administración del grupo español Marsans, la compañía en manos del Estado argentino desde comienzos de 2009 no levanta vuelo. Según un estudio de la consultora Oliver Wyman realizado para Aerolíneas Argentinas, la empresa arrojará pérdidas por más de 1.000 millones de dólares durante los próximos cuatro años. "Se logró un mayor cumplimiento de horarios y la ocupación va aumentando por, entre otras cuestiones, el temor a las presiones oficiales sobre Lan -su principal competidor en el mercado argentino- y los conflictos sindicales que sufrió esa compañía", dice Luis Rizzi, ex gerente general de Aerolíneas Argentinas y actual consultor miembro de la internacional Red de Investigación del Transporte Aéreo, en Buenos Aires. "Pero la situación económica de Argentina y de Aerolíneas, en particular, indica que una renovación de la flota parece fantasiosa".
Tras superar la zona de turbulencias, el viaje de las aerolíneas de la región promete ser más placentero durante los próximos años. Pero el cinturón deberá permanecer ajustado. "A pesar de que las aerolíneas de la región redujeron capacidad y ganaron ocupación, los ingresos bajaron porque se redujo lo que se paga por los billetes", dice García, de Interflight Consulting. "Ahora, ante la esperada mayor demanda, hay que resistir la tentación de añadir capacidad entre un año y año y medio para que las aerolíneas puedan tener un respiro de beneficios".
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IFG partner Titan Aviation announces delivery of its third Embraer Legacy 600 corporate aircraft.
IFG partner Titan Aviation announces delivery of its third Embraer Legacy 600 corporate aircraft. ”I am proud to be associated with and to support Titan Aviation on their Gulf region private aviation developments” Oscar Garcia stated “Sakeer Sheik, Titan Aviation’s Managing Director and I are developing the business over there and will replicate the same business model in the USA, very likely with a similar fleet to be based out of South Florida. We will be making announcements at the upcoming NBAA Convention in Orlando, Florida”. Please remain tuned to IFG-Titan Aviation news release for further information.
IFG and Titan Aviation are since 2008 a Joint Venture USA-Gulf Region and India in aviation and aerospace business with a strong focus on the Private and Special Mission aviation sectors.
For the full press release please click here
Read the Article below:
Embraer Legacy 600 jet delivered to Titan Aviation
08-Oct-2009
Embraer delivered a Legacy 600 executive jet to Dubai’s Titan Aviation, in the United Arab Emirates, during a ceremony held at the Company’s headquarters Monday in São José dos Campos, Brazil. The jet belongs to an undisclosed customer, and will be added to Titan’s portfolio of managed and operated aircraft, which includes two Legacy 600s, as well as a Lineage 1000 scheduled to be delivered in 2012.
“Titan Aviation has become a significant partner of Embraer, and we wish them great success with this third Legacy 600,” said Colin Steve, Embraer Vice President, Marketing and Sales, Europe, the Middle East and Africa – Executive Jets. “Embraer will continue supporting their operations, and we look forward to having them return soon for more deliveries.”
“On Titan’s sixth anniversary, it is a pleasure to come back to Embraer to take delivery of this third Legacy 600. Our operations with this aircraft are very successful, not only because it is a proven and reliable platform, but also due to the tremendous support provided by Embraer all over the world,” said Capt. Sakeer C. Sheik, Managing Director of Titan Aviation. “Our company continues investing in the expansion of its highly qualified staff, in order to better serve our clients and to be prepared for new opportunities.”
At the event, Mr. Ahmed, Director of Maintenance of Titan Aviation, commented that “the Legacy 600 performs excellently, with much less maintenance hassle, in spite of our clients’ high utilization rate. Furthermore, the maintenance tracking support services provided by Embraer, such as Flight Docs and the Embraer Executive Care (EEC) program, are great tools for us to serve our clients in the most efficient ways.”
The first Legacy 600 joined Titan’s fleet in June 2008, frequently flying to London City Airport (LCY), and this would not be possible without the certified steep approach capability. Pilots also have the Electronic Flight Bag (EFB), which provides precise aircraft performance calculations and electronic copies of manuals and charts, reducing pilot workload and allowing a paperless cockpit environment.
The second aircraft has proven to be a very important business tool for its owner. Delivered to Titan in July 2009, the jet has already accumulated more than 200 flight hours. The High-Speed Data (HSD) equipment provides a better use of time, increased work productivity, and more entertainment possibilities on frequent seven-hour business flights from Dubai to Europe and to Southeast African destinations.
Oscar Garcia Business Aviation Status Analysis
The prestigious Gerson Lehrman Group intelligence network published Oscar Garcia’s commentary on the state of business aviation with a strong focus in the USA markets. The commentary is based on a recent business aviation industry review published by Aviation week and Space Technology journal . “Some of the analysis and commentaries apply well to global markets” Oscar Garcia comments “ regions where the lending practices required more down payments, 80% Loan to Value maximums, are suffering much less or even keeping a constant rate of business aircraft deliveries and resale values. In my opinion, this is an adjustment stage from what was an abnormal financing high risk stage between 2004-mid 2008” . As lending and borrowing practices normalize in USA and Europe, the most affected regions, the business jet market should grow at 2-3% starting mid 2010 to peak again in the 207-2019 timeframe, IFC consultants believe.
For Oscar Garcia’s Video Presentation on this Subject
The prestigious Gerson Lehrman Group intelligence network published Oscar Garcia’s commentary on the state of business aviation with a strong focus in the USA markets. The commentary is based on a recent business aviation industry review published by Aviation week and Space Technology journal . “Some of the analysis and commentaries apply well to global markets” Oscar Garcia comments “ regions where the lending practices required more down payments, 80% Loan to Value maximums, are suffering much less or even keeping a constant rate of business aircraft deliveries and resale values. In my opinion, this is an adjustment stage from what was an abnormal financing high risk stage between 2004-mid 2008” . As lending and borrowing practices normalize in USA and Europe, the most affected regions, the business jet market should grow at 2-3% starting mid 2010 to peak again in the 207-2019 timeframe, IFC consultants believe.
To request further consultation on this subject please go to:
http://www.glgroup.com/News/When-and-How-High-The-Rebound---Business-Aviation-Hidden-Ponies-39625.html
Read the whole article and some press references to it below:
May 25, 2009
Analysis by: GLG Expert Contributor, Oscar S. Garcia
Analysis
Thus, opportunities abound.
www.faa.gov/data_research/aviation/aerospace_forecasts/2009-2025
Contributed by Oscar S. Garcia, a Member of the GLG Energy & Industrials Councils
http://www.avweb.com/eletter/archives/bizav/1383-full.html#200447
http://www.glgroup.com/News/When-and-How-High-The-Rebound---Business-Aviation-Hidden-Ponies-39625.html
Read the whole article and some press references to it below:
When and How High The Rebound? Business Aviation Hidden Ponies
May 25, 2009
Analysis by: GLG Expert Contributor, Oscar S. Garcia
- Analysis of: When Business Aviation Rebounds
- Published at: www.aviationweek.com
What is not said in this article is what it truly important: 1. Business Aviation grew strongly after 9/11 due mainly to safety, security and airline inefficiencies issues. Business aviation growth driver has always been efficiency and assets (planes) ROI, not corporate excess or luxury (private aviation) 2. Business aviation activities are closely aligned with GDP and productivity of the businesses, communities and countries it serves, not the other way around. Media hysteria is not fact! 3. The current adjustments in aircraft values and lending "rules of the game" simply respond to the over-leveraging-borrowing craze of 2004-2007. LTV's of 70-80% are now the norm as before 2004 4. This is the best opportunity in the history of business aviation to set the record straight. By the way, TARP clearly supports business aviation and even increased tax benefits to extend beyond the aircraft and to cover the additional equipment such as instruments and in flight communications
Analysis
Business aviation is alive and well. It is simply "corrected" to where it should be barring the 2004-2007 global financial leverage-lending madness. The recovery starts NOW, we just need to admit the collective bubble we all blew and move on. Let's set the record straight:
first, the media sensationalism related to the automobile CEO's and TARP has given the industry its best opportunity to educate both government and mainstream about how well business aviation has been optimized throughout the past 5 decades. In addition a few myths have been set straight about business vs. private/luxury aviation. By the way, TARP's detailed language not only welcomes business aviation to rescued companies but it expands depreciation tax incentives beyond the aircraft to include extra onboard equipment such as avionics and onboard communications.
With all due respect to experts and panelists, business aviation practices and procedures in US corporations, yes, even the automobile big three, have been run efficiently, audited often by shareholders and demonstrated to add tremendous value to the companies they serve.
No, the media hysteria of lately has not discovered a hidden excess about business aviation, they simply screamed, bluffed and unfortunately, three weak and weary CEO's kneeled down. The masses felt vindicated and the new President gained a few brownie points, that's it.
Second, make no mistake, there is plenty of capital to finance new and used aircraft, except that the lenders have sobered and now want 20-30% down payments as well as a robust credit file. Nothing wrong with that, this was the normal business practice before the irrational "leveraging" and real estate value fueled over borrowing-lending surges of late 2003-early 2004. By the way, foreign economies used to 70-80% LTV lending which did not embark in the USA's roller coaster debt ride, such as Latin America are growing their business aviation with a business as usual stance.
Thus, opportunities abound.
First pony. The bottom end of older , fully written off, fuel thirsty and maintenance intensive aircraft, those 25+ years old will certainly fall and these aircraft will be decommissioned. Thus, the not so large glut (about 5% more than the average) of used aircraft will quickly be absorbed at realistic prices, with 70-8-% LTV loans and the best finance rates in the last 25 years.
Second pony. After the industry stakeholders and its very capable associations (NBAA.AOPA, NARA, NATA, etc) educate the public on the merits of business aviation, there are going to be many, many new entrants. Companies with revenues of US$10 million an up who thought private aviation was beyond their reach will find out that new generation "right size-right price"very light jets and operators (charters, jet cards, fractionals) are ready to partner with them to enhance their business and economic impact to the community.
Third pony. The airline industry worldwide is not really pushing to be regulated, sorry Mr. Crandall, moreover, it is seriously looking at ways to introduce business jets into its premium passengers service offerings. The idea is to enhance the service levels and to complement the well optimized hub and spoke system. Delta Elite, Lufthansa/Swiss Private Jets, Korean airlines are pioneering this effort with compelling results thus far.
As a conclusion, look at Q3 2009 as the "adjustment" milestone for business aviation and rest assured that 2010 will see a 2-3% sector growth from the adjusted values. From there on, the growth should be 3-5% as long as all of us, collectively, don't blow another 3-4 year "free money"bubble. And the business aviation world who followed us into the bubble will also follow us into a solid decade of sober growth.
Even the Federal Aviation Administration forecast team, a pilar of no nonsense aviation business dry-matter of fact analysis agrees
www.faa.gov/data_research/aviation/aerospace_forecasts/2009-2025
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
Contributed by Oscar S. Garcia, a Member of the GLG Energy & Industrials Councils
http://www.avweb.com/eletter/archives/bizav/1383-full.html#200447
Bizjet Recovery On The Way
The Gerson Lehrmann Group has issued its take on the state of business aviation and it claims there are a few things working in the industry's favor. For one thing, airlines are going out of business or cutting back flights and destinations to avoid that, leaving business aviation as an increasingly attractive option for business owners and execs whose travel needs haven't disappeared in the current climate. "In the weeks and months after 9/11 when the airlines were in lockdown and security requirements made airline travel, if not impossible, extremely unpleasant, business aviation had its finest hour," the analysts said. "Every business jet on a charter certificate was booked." Gerson Lehrmann also says the current anti-business aviation attitude will disappear and be a non-issue in the decision-making processes of companies and individuals looking for new aircraft. It quotes the Teal Group as predicting recovery for the industry by 2012 with a 10-percent annual growth rate after that. A total of 12,768 business aircraft will be delivered in the next ten years, according to the Teal Group. But even the downturn hasn't been that bad, according to Gerson Lehrmann. "While the industry is working through this down cycle, business jets have not been grounded," the analysis reads. "Flight hours may be off 20%, but the fleet is still growing, and aging."
IFG -Bloomberg News Global Private Aviation Status Article
InterFlight Consulting advised and added content to Bloomberg News article focused on the very sensitive and timely issue of corporate aircraft use and its impact to shareholders. Adding to current and urgent actions from global leading business aviation entities such as NBAA, EBAA, NATA and AOPA, IFG’s Chairman Oscar S. Garcia provided expert opinions and commentary to this very important article. Bloomberg news is a true authority in business and economic issues globally and their assessment of private aviation realities was greatly enhanced by IFG’s group subject expertise. Oscar Garcia commented “ The interview leading to this article was of prime importance to both Bloomberg news and IFG Group. Our consultancy IFC is very often used as a leading source of industry status and forecasting. We are proud to have contributed to this piece and remain available for further comments to both media and industry stakeholders as necessary. The importance of corporate and private aviation as economic development generators cannot be deformed by political interests and public reactions to sensationalist news”
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| Article excerpt: |
By Andrea Rothman and Susanna Ray April 28 (Bloomberg) -- Gulfstream and Cessna will need at least two years to revive sales of corporate jets after the public shaming of executives like Elan Corp.s Kelly Martin. The Dublin-based drug company chief helped run up a bill of as much as $6 million last year flying to a San Francisco research center in a Gulfstream V. Now he will be lining up at the airport with everyone else after investors campaigned for him to switch to standard airline flights costing $1,000. With businesses shunning luxury planes costing up to $55 million apiece, manufacturers including Bombardier Inc., General Dynamics Corp. and Dassault Aviation SA are slashing output and shedding 15,000 jobs. Gulfstream maker General Dynamics tomorrow will report the slowest profit growth in more than five years, according to analyst estimates compiled by Bloomberg, and Cessna owner Textron Inc. today said first-quarter profit from continuing operations fell 81 percent. Corporate aircraft make commercial airliners look like a safe haven, said Richard Aboulafia, vice president of the Teal Group aviation consultancy in Fairfax, Virginia. Its the market most exposed to the huge downturn in corporate profits and where the economy really hits the tarmac. Business-jet deliveries may fall 50 percent this year and next, according to UBS AG. The $22 billion industry has been left reeling after companies and wealthy individuals began scrapping orders and selling business jets last year as the global economy started to contract. |
| Detroit Three |
Pressure to avoid the planes mounted after the CEOs of General Motors Corp., Chrysler LLC and Ford Motor Co. used them to fly to Washington hearings on taxpayer bailouts, prompting Democratic Representative Gary Ackerman of New York to ask: Couldn’t you all have downgraded to first class? GM terminated its leases for two Gulfstream V planes and five Gulfstream IIIs. Royal Bank of Scotland Group Plc Chairman Philip Hampton told shareholders April 3 that keeping its Dassault Falcon 7X jet would be an embarrassment following the companies rescue by the U.K. government. The outlook for business-jet manufacturers is bleak. Deliveries, which rose 28 percent last year to 1,138, may fall to less than 600 in 2010, according to New York-based UBS analyst David Strauss. That’s about the level of 2003, when 591 planes were built. Wichita, Kansas-based Cessna, the largest maker of business jets by aircraft built, is eliminating almost 5,000 posts, or 30 percent of the workforce. The unit last year generated about 40 percent of revenue at parent Textron. |
| Top Performer |
General Dynamics will scrap 1,200 jobs at Savannah, Georgia-based Gulfstream and cut production by one-fifth. The unit was previously the companies top performer, with an 18.5 percent operating profit margin compared with an average 11 percent at marine, weapons and information-systems divisions. Textron today said first-quarter profit from continuing operations dropped to $43 million, or 18 cents a share. Excluding some costs, profit was 26 cents a share. Analysts had predicted 1 cent a share. General Dynamics may say profit growth slowed to 3 percent, dropping below 10 percent for the first time since 2003. It lowered the 2009 earnings goal to as little as $6 a share on March 5 from as much as $6.75. Neither company would comment yesterday prior to announcing their results. Bombardier, the Montreal-based maker of the Learjet, is cutting almost 4,500 jobs after aerospace sales fell 4 percent in the quarter. The company said April 2 it will deliver 25 percent fewer business jets this year and declined to comment further yesterday. |
| Shares Slide |
Textron fell 1.7 percent in regular New York Stock Exchange composite trading and has fallen 19 percent this year. General Dynamics declined 1.2 percent, taking losses for the year to 11 percent, and Bombardier slipped 2.2 percent for a 19 percent drop. Bertrand Grabowski, the board member responsible for aviation clients at Germanys DVB Bank SE in London, said the move away from private planes is questionable when aircraft are eliminated because of a general mood of austerity and otherwise make good business sense. People are abandoning jets for corporate-communications purposes, Grabowski said. Farm-equipment maker Deere & Co. plans to keep its aircraft even after criticism by shareholder advisory group Risk Metrics, which said in a February report that CEO Robert Lane spent $400,000 on private flights in 2008, four times the norm for industrial companies. Deere also flew directors and their spouses to India for a board meeting, Risk Metrics said. |
| Far Flung |
The company, which has four Cessna’s and a Gulfstream V, told Bloomberg that the difficulty of traveling from its base in Moline, Illinois, to often the far-flung headquarters of its customers generally makes using airlines impractical. Lane also employs private aircraft for safety and security reasons, spokesman Kenneth Golden said by e-mail. He said Deere is more frank in disclosing costs than its peers. Dublin-based Elan, whose stock has lost 74 percent in 12 months, hasn’t renewed a contract with Net Jets Inc., the private-jet company owned by Warren Buffett, though that could change. We use commercial transport for the most part but would prudently consider the use of an independent plane if the scales balanced in terms of less overnights, associated expenses and executive time, spokeswoman Niamh Lyons said in an e-mail. |
| Elan Letter |
Chairman Kyran McLaughlin has said in a letter to investors that Elan spent less than 1 percent of its $618 million in operating expenses before one-time items on private jets last year, without providing an exact figure. Lyons said she couldn’t expand on that guidance. Matt Strobeck, a partner at Boston-based Westfield Capital, which owns 17.5 million Elan shares, backed the campaign to force the unprofitable company to use scheduled flights. They don’t need private jets because you can get pretty much anywhere on commercial airlines, he said in an interview. Charles Edelstenne, CEO of Paris-based Dassault, said in an interview that every day brings a fresh piece of bad news. He blames the U.S. automakers Washington trips for making it a scandal to own a business jet. Dassault stock fell 1.6 percent today, taking the decline this year to 23 percent. Cessna President Jack Pelton says industry profits closely mirror those at major companies, just with an eight-quarter lag. Plane makers need to defend the products as time-saving business tools to access markets poorly served by airlines, he said. Pelton started an advertising campaign urging executives not to be intimidated into shunning corporate jets. That stigma is a factor we’ve never experienced in the past, Pelton said. We need to make sure we show leadership for the industry and demonstrate the importance of our products and the jobs they create. For Related News and Information: For aircraft deliveries and orders: ALLX FRAV --With assistance from Trista Kelley and Jon Menon in London, Edmond Lococo in Boston, Melita Garza in Chicago and Linda Shen in New York. Editor: Chris Jasper, David Risser. |
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