Aircraft Finance & Leasing News - North America

AirGuide Business, Sept 8, 2008

Boeing

Boeing faces potential delay in assembly completion of first 787. With just over twenty-four hours to go before the contracts of 26,800 machinists expire, Boeing is quickly running out of margin to achieve first flight of the 787 as the deadline for assembly completion of the first aircraft has reportedly slipped. According to several sources inside the 787 programme and others familiar with the schedule, assembly completion of Dreamliner One is now tentatively targeted for early October, a slip of about five weeks. Completion was initially set for 31 August, just four days prior to the expiration of a three-year contract Boeing has with the International Association of Machinists (IAM). The change in the airframer's internal schedule regarding Dreamliner One is separate from a potential machinists strike. A Boeing spokeswoman today reaffirmed the 787 is "on track for first flight for the fourth quarter of this year". According to another source familiar with the schedule change, the remaining work centres largely on the installation of flight test instrumentation and cabin equipment. Sep 2, 2008

Boeing

Boeing has presented a best and final offer to its largest union that retreats from its most unpopular benefits proposals and adds new financial incentives, yet remains silent on the key issue of job security and global outsourcing. The deal would give nearly 27,000 Boeing workers represented by the International Association of Machinists a 14% overall wage increase over three years, including a cost of living adjustment. Boeing's starting offer was 9.5%. Boeing is also offering a $2,500 bonus if the new contract is approved on September 3, the day the current contract expires. Sep 1, 2008

Bombardier

Bombardier Aerospace enjoyed a 79% year-over-year surge in fiscal second-quarter operating profit to $238 million thanks to an increase in aircraft deliveries. Revenue for the three months ended July 31 was up 13.6% to $2.5 billion and the order backlog was worth $26.1 billion, up 15% from Jan. 31. The manufacturer received orders during the quarter for 175 aircraft comprising 162 business aircraft, 11 commercial jets and two amphibians, down from 187 in the year-ago quarter. Deliveries rose 14% to 89. Companywide, Bombardier reported consolidated net income of $246 million, reversed from a loss of $71 million in the year-ago period. Sep 5, 2008

Bombardier

Bombardier returned to profitability in the second quarter, compared with the same period last year when it recorded a big write-off on the value of a rail investment. The plane and train maker said on Thursday net income was USD$246 million, compared with a loss of USD$71 million a year earlier. The 2007 results included a USD$162 million charge from the write off its investment in Metronet Rail. Metronet, which was refurbishing part of the London Underground, filed for bankruptcy protection last year after it ran out of cash. Revenue for the quarter was USD$4.93 billion, up 22 percent from USD$4.04 billion with revenue of USD$2.5 billion at its aerospace division. Aircraft orders for the quarter totaled 175, compared with 187 a year earlier. Deliveries totaled 89, compared with 78 last year. Sep 4, 2008