Boeing agreed (22-Nov-2010) to acquire the business and operations conducted by Summit Aeronautics Group in Helena, Montana. Summit employs 135 people to manufacture titanium and other hard metal structures for commercial and military aircraft. Summit currently performs work for the B747-8, B787 and B767s. Through the agreement, Boeing will acquire, among other things, the building, assets and inventory as well as assume operation of the site. Boeing anticipates this transaction will close in 4Q2010, following satisfaction of customary closing conditions. This transaction is not expected to have a material impact on Boeing's 2010 or 2011 financial results. Terms were not disclosed. [more]
Boeing announces agreement to acquire Summit Aeronautics
You may also be interested in the following articles...
Frontier and Spirit Airlines ramp up their fleets to support bullish views on passenger stimulation
ULCCs Frontier and Spirit hold orders for more than 150 Airbus narrowbodies to support the proliferation of the model across the US. Frontier’s fleet is projected to grow by 83% from YE2016 to 2021 – from 66 to 121 aircraft. Spirit’s current fleet forecast shows 46% growth from YE2017 to 2021 – from 108 aircraft to 158 aircraft.
Each airline is taking nuanced approaches to financial management of its fleet. Spirit has opted to purchase some aircraft off lease in order to enlarge its number of owned aircraft, while Frontier, which is just embarking on the process of accessing public markets, will use operating leases as its primary financing vehicle.
The planned growth by each airline reflects conclusions reached by Frontier and Spirit about the opportunities for the ULCC model in the US, despite changing market dynamics – namely a push by large US global network airlines to create pricing segments to compete more effectively with ULCCs. Despite the focus on price matching by larger airlines, Frontier and Spirit remain bullish on the opportunities for stimulation in the US market.
The US Big 3 airlines work to slash pensions while maintaining responsible balance sheet management
The three large US global network airlines – American, Delta and United – continue to tout the strength of their balance sheets; the results which they’ve achieved during the past few years by the use of various tools, including free cash flow generation and debt reduction.
Delta is using its newly minted investment grade status to tap markets for creative ways to fund its hefty pension obligations during the next two to three years. American is also working to ensure pension compensation coverage by lifting its liquidity targets as rules allowing favourable minimum funding contributions expire in 2017.
Each of those airlines is bracing for fairly substantial capital expenditures during 2017, largely driven by aircraft acquisitions, but American, Delta and United have no plans to compromise their balance sheet progress irrationally in order to support fleet revamps.