AviTrader_Monthly_MRO_e-Magazine_2016-11

MRO and Production News
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Volo Aero MRO receives EASA approval
Volo Aero MRO has received its EASA approval
allowing it to issue dual release certificated
repairs. Currently Volo Aero MRO provides
precision machining and overhaul services
to the aerospace industry with greater than
98% on-time delivery. The focused capability
covers the overhaul of gears, disks, rings
and housings for both engine and accessories
support OEM’s and MRO’s.
Blue Panorama and Meridiana order
Andromeda seats on B767
Aviointeriors was awarded an order for the
B767 Andromeda Business class seat which
will be used in a derived version as crew rest
seat for both Blue Panorama Airlines and
Meridiana. The Andromeda seat will be fully
compliant with CS FTL.1.205 (C) Flight Duty
Period (FDP) regulations ‘Class 2 rest facility’.
This means a seat in an aircraft cabin that
reclines at least 45° back angle to the vertical,
has at least a pitch of 55 inches (137.5 cm),
a seat width of at least 20 inches (50 cm) and
provides leg and foot support.
Finance News
Trenchard Aviation acquires Reheat International
Trenchard Aviation, a civil aircraft maintenance business focusing
on cabin services, has acquired Reheat International, a specialist
repairer of on-board galley equipment and cabin interior products.
The acquisition is the third since Graphite Capital, a leading midmarket
private equity specialist, financed the management buy-out
of Aero Technics in November 2015. The acquisition of Reheat
marks another step towards Trenchard’s stated goal of building a
group of businesses in aircraft servicing with an initial focus on cabin
maintenance services. Graphite provided support to Trenchard in
completing the acquisition.
Reheat, based in Alton, Hampshire, provides a one-stop shop aftermarket
solution for an extensive range of aircraft galley equipment
and cabin interior products for a wide range of airlines. In addition,
Reheat acts as an authorized repair station for a growing number of
OEMs and, in particular, services Europe, the Middle East and Africa
for the Adams Rite range of cockpit door strikes.
Air BP and BP Ventures announce investment of
US$30m in biojet producer, Fulcrum
BP has announced the creation of a strategic partnership between its
BP Ventures and Air BP businesses with Fulcrum BioEnergy, a pioneer
in the development and production of low-carbon jet fuel, in which
BP will invest US$30m. As an equity investor, BP has secured a 10-
year offtake agreement with Fulcrum for 50 million US gallons per
year, from their plants under development across North America.
In addition, as a preferred supply chain partner, Air BP will distribute
and supply biojet to aircraft at key hubs across North America.
Fulcrum has developed and demonstrated a reliable and efficient
process for producing low-cost, sustainable biojet from municipal
solid waste (MSW). The company has secured long-term access to
large volumes of MSW feedstock and is actively developing its plan
to build waste-to-fuel plants in North America, initially, with growth
potential around the world. Fulcrum’s first plant is currently under
construction.
concludes the current US$600m share repurchase program. Spirit’s
third-quarter 2016 revenue was US$1.7bn, up 7% compared to the
same period of 2015, primarily driven by higher production deliveries
on the A350 XWB and Boeing 767 programs and higher revenue
recognized on certain non-recurring Boeing programs, offset
by lower production deliveries on the Boeing 747 program. Spirit’s
backlog at the end of the third quarter of 2016 was approximately
US$46bn, with work packages on all commercial platforms in the
Boeing and Airbus backlog. Operating income for the third quarter
of 2016 was US$214m, compared to US$192m in the third quarter
of 2015, reflecting higher production deliveries. Reported EPS
was US$1.16, compared to US$2.24 EPS (or US$0.89 adjusted EPS
excluding the impact of Deferred Tax Asset Valuation Allowance) in
the same period of 2015. On an adjusted basis, EPS is up 30% year
over year.
Ontic acquires part of GE Aviation’s avionics business
Ontic, a BBA Aviation company and the aerospace industry’s leading
provider of ‘Extended Life Solutions’ for OEM legacy products,
has reached an agreement to acquire a portfolio of legacy avionics
products (the “Business”) from GE Aviation.
The Business incorporates a portfolio of legacy avionics parts servicing
the military and commercial aviation markets, including electro
mechanical, barometric, gyroscopes and electronics products.
Key platforms include Boeing 737, Sikorsky Sea King and Leonardo
AW101 helicopters, Lockheed C130/J transports and BAE Hawk
aircraft. The portfolio has a strong fit with Ontic’s existing business,
and the acquisition is aligned to Ontic’s strategy to deliver continued
profitable growth in mature avionics and electronics products with
high intellectual property content. With significant experience of acquisitions,
including a similar business bought from GE Aviation in
2011, Ontic has proven processes to ensure the seamless integration
of new product lines, which will be supported in this case by a
transitional services agreement with GE Aviation. The transaction is
expected to complete early in the New Year, subject to the satisfaction
of certain conditions.
Spirit AeroSystems posts third-quarter results
Spirit AeroSystems reported third-quarter 2016 financial results driven
by strong operating performance of mature programs. During
the quarter, Spirit purchased 7.4 million shares for US$332m, which
Avolon adds five banks to acquisition debt facilities for
transaction with CIT Group
Avolon, the international aircraft leasing company, has placed 35%
of the US$8.5bn debt financing facilities, led by Morgan Stanley
AviTrader MRO - November 2016