European markets suffer from Dubai World fallout, EADS, MTU and Rolls-Royce all trade down
US markets were closed due to the Thanksgiving holiday, leaving European stocks to bear the brunt of the fallout from the Dubai World conglomerate’s request for a six month suspension on USD60 billion of debt repayments. German, French and UK markets were down 3-3.5% in trading.
Suffering worst in the aviation sector were EADS, MTU Aero Engines and BBA Aerospace, which were all down 4.3% on Thursday. Rolls-Royce also lost ground, down 3.4%.
Chinese aviation and tourism IT supplier, Travel Sky Technology, was up 2.2%.
Bombardier confirms plans to reduce CJ output
Meanwhile, Bombardier confirmed plans to reduce its CRJ aircraft production rate, citing the current economic and airline industry environments that continue to make it difficult to gain new aircraft orders, particularly for the CRJ aircraft family.
The adjustment to the CRJ aircraft production rate will result in the layoff of approximately 715 employees. This is in addition to the approximately 4,360 layoffs previously announced this fiscal year for Bombardier Aerospace worldwide. Severance costs associated with this latest reduction in the employment level are approximately USD10 million.
Selected Aviation suppliers’ daily share price movements (% change): 26-Nov-09
Source: Centre for Asia Pacific Aviation & Yahoo! Finance