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Mixed day for Boeing and Airbus, Expedia surges, Orix rises, CAE falls – Share Wrap

20-May-2009

Shares in Airbus parent, EADS, slipped 1.9%, while Boeing was up 0.6%, going against their respective broader markets. More progress was announced on Boeing’s 787-8 programme, but the company’s Integrated Defense Systems President, Jim Albaugh, cautioned that the upcoming US defense budget could represent “a high watermark” for US defense spending past 2010.

TravelSky lost 1.9% after it announced the purchase of SITA’s 49% share of Infosky Technologies (held through Grand China Holdings) for USD1.1 million. Infosky, which provides IT and other services for the Chinese air logistics industry, will become a wholly-owned subsidiary of TravelSky.

CAE also fell, down 3.0%, as its share price continues to dip on news that it expects a 40% fall in order levels in 2009 and plans to lay off approximately 10% of its workforce, leading to substantial one-time restructuring costs over the year.

On the other side of the ledger, Air Partner, a European private charter company, rose 3.4% on 19-May-09. The company’s Managing Director, Justin Barber, acquired 10,000 shares (approximately USD80,000) in Air Partner on 18-May-2009. Its share price has gained approximately 60% since late Mar-2009.

Another winner on 19-May-2009 was Expedia, which rose 4.1%. After dropping last week due to suggestions that it would make permanent discounts previously introduced on a temporary basis, the online booking company’s share price has been stronger on news this week that it intends to continue to expand into at least two new markets every year.

Orix Corporation

The Centre adds Orix Corporation to its Aviation Suppliers Share Wrap today. The Tokyo-based integrated financial services group covers a wide range of interests, including leasing, corporate and consumer finance, real estate-related finance and development, life insurance and investment banking.

Its Dublin-based ORIX Aviation unit has a fleet of 115 aircraft with 37 customers and provides a range of services, including aircraft leasing and asset and lease management services, technical oversight and advisory services. Standard & Poor’s Ratings Services recently raised its rating on ORIX Aviation from its ‘average’ rating to ‘above average’, with a stable rating outlook. Orix Corp’s share price was relatively flat on 18-May-2009, up 0.2%.

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Selected aviation suppliers' daily share price movements (% change): 19-May-09


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