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Boeing to issue directive on older B737s; Korea Aerospace Industries to list

Analysis

Korea Aerospace Industries has applied to list on the main KOSPI, according to the Korea Exchange, although the value and size of the IPO has not been finalised. The Korean Exchange was expected to make a decision on the IPO request within two months. The company aims to launch its IPO in Jun-2011.

Summary
  • Korea Aerospace Industries (KAI) has applied for listing on the main KOSPI, with plans to launch its IPO in June 2011.
  • Woori Investment & Securities and Hyundai Securities will manage the IPO, with T Korea Finance being the largest shareholder of KAI.
  • Boeing is set to release a service bulletin recommending checks and inspections of lap joints on certain Boeing 737-300/400/500 aircraft, following the discovery of a fuselage crack on three Southwest Airlines planes.
  • Lufthansa has chosen Pratt & Whitney PurePower PW1100G engines for its order of 30 A320neo family aircraft.
  • Indigo has also placed an order for PW110G engines to power 150 A320neo family aircraft.
  • Share prices of selected aerospace companies experienced changes on 4th April 2011.

Woori Investment & Securities and Hyundai Securities will manage the deal. T Korea Finance is the largest shareholder of KAI, controlling 30.1%. Samsung Techwin and Hyundai Motor both own 20.7% in the company.

Boeing intends to release a service bulletin recommending checks and inspections of lap joints on "certain" B737-300/400/500 aircraft. More than 900 are in service globally, but the bulletin will only apply to more heavily used aircraft. The decision follows the discovery of a fuselage crack on three Southwest Airlines B737-300s during inspections for metal fatigue following an 01-Apr-2011 incident when the fuselage on a Southwest B737-300 ruptured during flight.


Lufthansa selected Pratt & Whitney PurePower PW1100G engines for its order of 30 aircraft in the A320neo family. The order comes on top of Indigo's order for PW110G's to power 150 A320neo family aircraft.

Selected aerospace company share price movements (% change): 04-Apr-2011

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