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S. Korea Display F-35 Stealth Jets seen by the North as a Threat

SEOUL, Oct 1 (Reuters) – South Korea showcased newly acquired F-35 stealth fighter jets to mark Armed Forces Day on Tuesday as President Moon Jae-in tried to allay concerns that his policy of engagement with North Korea would weaken the South’s commitment to defence.

At an event marking the founding of the South Korean military, Moon said South Korean fighter jets conducted patrol flights offshore, including over islands at the centre of a bitter territorial dispute with Japan.

North Korea has criticised the South’s weapons procurements and its joint military drills with the U.S. military as undisguised preparations for war that are forcing it to develop new short-range missiles.

Moon has thrown his support behind dialogue to end the North’s nuclear and ballistic missile programmes, urging that working-level negotiations between the North and the United States be held soon. No new dates or locations have been set.

Moon marked Armed Forces Day at a ceremony at an airbase in the city of Daegu that highlighted four of the eight Lockheed Martin F-35A jets delivered this year. Forty of the aircraft are to be delivered by 2021.

During the event, an F-15K jet patrolled over the islands claimed by both South Korea and Japan and called Dokdo in Korea and Takeshima in Japan.

Moon made no direction mention of North Korea or Japan but said today’s security climate was highly unpredictable, requiring strength and innovation.

“As the recent drone attack in the Middle East region demonstrated to the world, the challenges that we will face will be entirely different from those of the past,” he said in an address to the military. “The war of the future will be a fight of science and intelligence against all elements that threaten our people’s safety and property.”

Analysts have said the F-35 stealth jets put North Korea’s anti-aircraft and anti-missile defence systems in a vulnerable position.

Negotiations aimed at dismantling North Korea’s nuclear and missile programmes have stalled since a second summit between U.S. President Donald Trump and North Korean leader Kim Jong Un broke down in February over disagreements on denuclearisation.

North Korea blamed the United States on Monday for a failure to restart talks, with Pyongyang’s U.N. ambassador Kim Song saying it was time for Washington to share proposals for talks that showed Washington had adopted a new “calculation method”.

South Korea and the United States have separately begun talks for a new military burden-sharing agreement to decide how much South Korea will pay for stationing what is now about 28,500 U.S. troops in the country.

Moon told Trump during a summit in New York last week what South Korea would contribute, including an increase in purchases of U.S. weapons and future purchase plans, a senior official at South Korea’s presidential office said.

(Reporting by Joyce Lee Editing by Jack Kim, Paul Tait and Gerry Doyle)

Discount Carrier Sun Country Prepares for IPO

Sun Country Airlines,a small Minnesota-based, low-cost carrier owned by private-equity firm Apollo Global Management, plans to file for an initial public offering as soon as April, Sun Country’s CEO said Tuesday in an interview.

“Our earnings are supportive,” Jude Bricker told Skift at the International Aviation Forecast Summit in Las Vegas. “I think there’s a market for an airline that is growing.”

If Sun Country were to go public next year, it would be a fast turnaround for Apollo, which acquired the airline in December 2017. The previous owners, Mitch and Marty Davis, who also control Cambria, a maker of stone countertops, had managed Sun Country more like a family business than a medium-sized airline. Apollo has cut costs and changed the model, dropping first class, adding fees and making more it like Frontier Airlines or Spirit Airlines than an undersized competitor to Delta Air Lines or American Airlines.

Click the link for the full story! https://finance.yahoo.com/news/u-discount-carrier-sun-country-180032662.html

BRX Holdings to buy Pioneer Railcorp for $18.81 Per Share

PEORIA, Ill., May 17, 2019 /PRNewswire/ — Pioneer Railcorp (OTC: PRRR, “Pioneer”), a railroad holding company that owns short-line railroads and several other railroad-related businesses including a railroad equipment company and a contract switching services company, and BRX Transportation Holdings, LLC (“BRX”), an entity formed by Brookhaven Rail Partners (“Brookhaven”) and Related Infrastructure (“Related”), announced entry into a definitive merger agreement under which BRX will acquire Pioneer for $18.81 per share in cash. The agreement, which has been unanimously approved by Pioneer’s independent directors, represents a premium of approximately 100.7% over Pioneer’s closing stock price on May 16, 2019, the last trading day prior to the announcement of the transaction.

“We look forward to this next chapter in Pioneer’s journey and anticipate it will have a bright future under new ownership,” said Mike Carr, President and Chief Executive Officer of Pioneer.

“We are excited to partner with Related Infrastructure and to have worked with Pioneer’s management and board on a transaction that brings great value to its shareholders, its customers, and the communities it serves. Pioneer fits perfectly with Brookhaven’s philosophy of identifying opportunities where our hands-on management expertise, proprietary value creation strategies, and deep industry relationships provide us with a competitive advantage and the ability to create value,” said Alex Yeros, Principal of Brookhaven.

Related Infrastructure, a subsidiary of Related Fund Management which has raised over $5 billion of capital across a variety of different investment vehicles and strategies, invests in companies that develop, operate and service transportation infrastructure throughout the United States. Andrew Right, Managing Partner of Related Infrastructure said, “We are pleased to partner with Brookhaven to build a rail-based infrastructure platform. We appreciate the work Mike Carr and his team have done to create the Pioneer portfolio of rail businesses. We look forward to working with Alex and the entire team at Brookhaven, an industry leading team with over 25 years of experience building businesses in the short-line rail industry to further drive expansion of the platform.”

Under the terms of the merger agreement, BRX will acquire through merger all of the outstanding shares of Pioneer’s Class A common stock. Shareholders other than Pioneer’s subsidiary, Heartland Rail Investments LLC, will receive $18.81 per share in cash and the Heartland shares will be canceled without consideration.

In connection with the execution of the merger agreement, certain stockholders of Pioneer, together holding a significant portion of the outstanding shares of common stock of Pioneer, have agreed to vote their shares in favor of the transaction under a voting and support agreement.

The consummation of the merger is subject to various closing conditions, including approval by Pioneer’s shareholders, Surface Transportation Board approval, and operating performance by Pioneer within a specified working capital floor and debt ceiling. The merger is not subject to a financing condition. Subject to satisfaction of the closing conditions, the transaction is expected to close in the third quarter of 2019.

Arnold & Porter is acting as legal advisor to BRX in this transaction. BMO Capital Markets is serving as exclusive financial advisor to Pioneer in connection with this transaction and Briggs and Morgan, P.A. is acting as Pioneer’s legal advisor.

About Pioneer
Pioneer Railcorp is the parent company of 17 short-line common carrier railroad operations, an equipment leasing company, two service companies and a contract services switching company. Pioneer and its subsidiaries operate in the following states: Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Michigan, Mississippi, Ohio, Pennsylvania and Tennessee. For more information on Pioneer, please visit: http://www.Pioneer-Railcorp.com

About Brookhaven
Brookhaven Rail Partners is an affiliate of Denver-based Brookhaven Capital Partners, a privately held, real estate and infrastructure investment and management firm. Brookhaven and its principals have a 25-year track record of investing in, operating and developing critical transportation assets that support industry, and promote new economic development, community investment, and job creation. For more information on Brookhaven, please visit: http://www.BrookhavenPartners.com

WestJet To Be Taken Private In C$3.5 Billion Cash Deal

(Reuters) – Canada’s WestJet Airlines Ltd said on Monday it will be acquired by private equity firm Onex Corp in an all-cash deal for C$3.53 billion ($2.63 billion).

Including debt, the deal is valued at about C$5 billion.

As part of the deal, WestJet shareholders will receive C$31 for each share held, representing an about 67% premium to its closing price on Friday.

The investment will be led by Onex Partners, Onex’s private equity platform focused on larger investment opportunities and WestJet’s board has recommended that its shareholders vote in favor of the deal.

The private equity fund has a history of investing in aerospace, having previously held a major stake in Boeing supplier Spirit Aerosystems.

The deal is expected to close in the latter part of this year or early next year, the company said.

CIBC Capital Markets and B of A Merrill Lynch were the financial advisers to WestJet, while Barclays, Morgan Stanley and RBC Capital Markets advised Onex.

(Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur)

Airbus Seeks Hefty Cost Cuts for A220 Jet

MONTREAL (Reuters) – Europe’s Airbus is looking for a “significant double-digit” percentage reduction in costs for a recently acquired Canadian jet program, as it expands production capacity to cope with anticipated demand for the former Bombardier jet.

Philippe Balducchi, head of an Airbus-led venture which took over production of the loss-making A220 last year, indicated the bulk of the reduction in costs would come from the supply chain as Airbus uses its greater clout in negotiations for parts.

Other savings would come from more efficient operations as workers gain experience of building the lightweight 110-130-seat jet, whose deliveries doubled to 33 aircraft last year.

But overall economies will go “way beyond” what Airbus can achieve internally on the assembly line, Balducchi said.

“Our focus is to sell, ramp up (production) and reduce costs on the A220,” Rob Dewar, head of engineering and customer support, added during a media briefing on the jet, which was known as the CSeries until Airbus took control in July 2018.

The A220 consortium, which also includes Bombardier and the Quebec government, is spending some $30 million to expand its Mirabel production plant outside Montreal and will break ground this week on a new assembly line in Alabama for U.S. airlines.

Airbus meanwhile said the Canadian-developed A220 jet had won approval to fly up to three hours away from the nearest airport in the event of a shutdown of one of its two engines – a safety standard which underpins its use on longer-range routes.

The green light has been given by Canada, while approvals in the United States and Europe are pending, Airbus officials said.

The extended operations or ETOPS approval affects the number of routes the plane can fly over water or remote areas.

(Reporting by Tim Hepher; editing by Richard Lough and Jan Harvey)

Image from http://www.airbus.com

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