Tag: initial (Page 2 of 2)

China’s HNA Steps Up Efforts to Sell Swissport at Big Discount

February 5, 2020 / WIL BALDWIN

LONDON/FRANKFURT, Feb 5 (Reuters) – China’s HNA Group is resuming efforts to find a buyer for airport luggage handler Swissport despite facing a loss of several hundred million dollars on its initial $2.8 billion investment, four sources familiar with the matter told Reuters.

The Chinese conglomerate has rekindled talks with several heavyweight investment funds as it needs to raise cash to cut its debts, the sources said.

Rothschild is helping HNA identify prospective bidders, who are hoping to buy the Zurich-based business on the cheap after previous attempts to sell it stalled last year, the sources said, speaking on condition of anonymity because the process is not public.

U.S. buyout funds Apollo Global Management Inc and Cerberus as well as Canadian asset manager Brookfield have come forward to revisit a possible acquisition of Swissport, the sources said.

Two other U.S. investors – Bain Capital and Centerbridge Partners – are also looking to take part in a new auction, two of the sources said, adding interest from industry buyers had waned.

HNA is hoping to limit its losses and recoup at least $2.3 billion from the sale, one of the sources said.

But offers are expected to value Swissport at about $2 billion, two of the sources said, with one adding Apollo had previously offered $2.1 billion.

This means HNA may need to swallow a loss of more than $500 million to offload the business, which has annual core earnings of about $270 million, they said.

HNA, Apollo, Cerberus, Brookfield and Bain declined to comment, while Centerbridge was not available.

HNA bought Swissport for 2.7 billion Swiss francs ($2.8 billion) in 2016 in a deal that was meant to complement its sprawling portfolio of investments in aviation, logistics and tourism.

But the Chinese giant had to look into cashing out at the start of 2018 when its liquidity challenges turned it into one of China’s most indebted companies and forced it to quickly sell assets.

The 20-year old company, led by chairman Chen Feng, came under pressure after embarking on an aggressive M&A spree in the United States and Europe with deals worth an overall $50 billion.

It made a push into the travel and tourism industry, buying a 25% stake in Hilton Worldwide Holdings Inc in 2016 and then branched out into financial services, becoming the leading investor in Deutsche Bank.

But its M&A binge resulted in cash flow problems, prompting a review of all its business interests overseas.

HNA initially considered a possible listing of Swissport on the Swiss SIX Exchange in 2018, but then opted for an outright sale.

Apollo and Cerberus, which bought Paris-based Worldwide Flight Services (WFS) in 2018, were both initial contenders for Swissport, but negotiations stalled after the Swiss company secured a refinancing package in August.

($1 = 0.9727 Swiss francs)

(Reporting By Pamela Barbaglia and Clara Denina in London and Arno Schuetze in Frankfurt; Editing by Mark Potter)

India Renews Plan to Sell Off Air India

January 27, 2020 / WIL BALDWIN

The Indian government is in the market to sell its stake of Air India – and on Monday set a March 17 deadline for initial expressions of interest.

Indian conglomerate Hinduja Group and US-based fund Interups are already reported to be submitting theirs.

It’s not the first attempt at a sale: in 2018 the government failed to divest 76 per cent of the airline, and with it over five billion dollars of debt.

Air India workers protested ….

And potential bidders opted out because of stringent conditions attached – such as retaining all employees.

This time, the government has indicated, it’s open to revising some provisions.

Though bidders must assume liabilities, including debt at just under 3.3 billion dollars.

And substantial ownership and control must remain with an Indian entity.

The sale might face opposition from within prime minister Narendra Modi’s ruling BJP Party – one lawmaker describes the deal as quote ‘anti-national’.

But if successful, the buyer gets over 7,000 landing slots in India and overseas …

Together with the carrier’s low-cost arm and a stake in its cargo and ground-handling operations.

As for staff, Air India currently has around 13,000 permanent and contract personnel on its books …

Including 1,850 pilots.

Bain Capital To Invest In Atlas Air’s Aircraft Leasing Unit

December 18, 2019 / WIL BALDWIN

Investment firm Bain Capital Credit will invest an initial $360 million in a joint venture with Atlas Air Worldwide Holdings (NASDAQ: AAWW), a major provider of outsourced all-cargo aircraft operations and other aviation services, to lease freighter aircraft, the companies said Wednesday.

Under the agreement, Atlas’ leasing subsidiary Titan Aviation Holdings Inc. will contribute $40 million of equity towards the portfolio, which ultimately could have a value of $1 billion with additional commitments to acquire aircraft over the next several years. The number and type of planes to be acquired are still to be determined. Titan will identify and source aircraft, as well as provide lease-management services to the venture.

The new company will be called Titan Aircraft Investment, Dan Loh, Atlas’ vice president of investor relations, told FreightWaves. “The parties are working expeditiously to complete and implement all elements of the joint venture,” he said.

Since its inception in 2009, Titan has grown to become the third-largest freighter lessor globally by fleet value with over 30 aircraft and a book value of over $1.5 billion.

Titan provides aircraft to airlines, which put them under their own operating certificate and then fly, maintain and insure them. Contracts are usually long term.

Click the link for the full story! https://finance.yahoo.com/news/bain-capital-invest-atlas-airs-191045251.html

Sikorsky Showcases New Combat Rescue Helicopter

October 11, 2019 / WIL BALDWIN

WEst Palm beach, Fla., Oct. 11, 2019 – Sikorsky, a Lockheed Martin company (NYSE: LMT), showcased the next generation Combat Rescue Helicopter (CRH) during a ceremony at its Development Flight Center in West Palm Beach, Florida, this week.

View the video from the event. View the CRH b-roll.

During the event, United States Air Force General James M. Holmes, Commander, Air Combat Command, Joint Base Langley-Eustis, Virginia (91) described the HH-60W helicopter as critical took for the warfighter.

“I want to say thanks to everyone from Sikorsky for your dedication to your craft, for consistently living up to your mission statement of pioneering flight solutions that bring people home everywhere every time. And that partnership is incredibly valuable to us and the guys on the ground,” Gen. Holmes said. “We’re proud to work with you to deliver the most intuitive, precise, technologically advanced systems to our airmen.”

Other dignitaries attending the event included Dr. Will Roper, Assistant Secretary of the Air Force for Acquisition, Technology and Logistics and Rep. Brian Mast (R-FL) from Florida’s 18^th District.

Prepared for Production

The achievement of the Milestone C production decision on Sept. 24 launched the contract award known as Low Rate Initial Production for Sikorsky to build 10 CRH helicopters.

The U.S. Air Force program of record calls for 113 helicopters to replace the HH-60G PAVE HAWK™, which perform critical combat search and rescue and personnel recovery operations for all U.S. military services.

“The Combat Rescue Helicopter is the new era in Air Force aviation and a pivotal milestone that ties to our company’s legacy of bringing people home,” said Sikorsky President Dan Schultz. “Sikorsky employees and our nationwide supply chain are ready to begin producing, delivering and supporting this all-new aircraft for the warfighter.”

The HH-60W Combat Rescue Helicopter is significantly more capable and reliable than its predecessor, the HH-60G.The aircraft hosts a new fuel system that nearly doubles the capacity of the internal tank on a UH-60M BLACK HAWK®, giving the Air Force crew extended range and more capability to rescue those injured in the battle space. The HH-60W specification drives more capable defensive systems, vulnerability reduction, hover performance, electrical capacity, avionics, cooling, weapons, cyber-security, environmental and net-centric requirements than currently held by the HH-60G.

“We send in brave men and women who are going to find a way to get the job done,” Dr. Roper said. “But they’ll tell you about flying in and not being certain that they could land safely or putting the broad side of their vehicle between a downed pilot and gunfire. When you hear those stories, you realize that we put heroes on these vehicles. We pick up heroes in these vehicles and they deserve every technology advantage we can give them.”

Training Systems

On Sept. 19, four pilots and four special mission aviators from the U.S. Air Force graduated from the Sikorsky Training Academy’s S-70i Transition Course. As previously qualified HH-60G Pave Hawk crews, the students learned about the unique systems and operating capabilities of the Sikorsky S-70i. During the four-week course, they each spent seven hours using a procedural trainer, 10 hours in a full-motion flight simulator and 10 hours of flight time in the S-70i aircraft.

To ensure mission readiness, Lockheed Martin will deliver a custom-tailored training system consisting of flight simulators, procedural and maintenance trainers and accompanying courseware.

In 2020, Lockheed Martin will train 200 U.S. Air Force and maintenance aircrew students at our Sikorsky Training Academy in Stuart, Fla. utilizing training systems and three newly built HH-60W aircraft. This will provide flight and maintenance training to initial cadre and units allowing the U.S. Air Force to remain vigilant while simultaneously fielding and employing the added capabilities of the HH-60W aircraft.

*The Sikorsky HH-60W helicopter at the Development Flight Center in West Palm Beach, Florida. Photo courtesy Sikorsky, a Lockheed Martin company.*

Discount Carrier Sun Country Prepares for IPO

August 29, 2019 / WIL BALDWIN

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

Sikorsky Receives Contract to Build Presidential Helicopters

June 11, 2019 / WIL BALDWIN

The VH-92A helicopter completed operational testing that included operating on the south lawn of The White House in September 2018. Photo courtesy of the U.S. Marine Corps.

STRATFORD, Conn., June 10, 2019 — Sikorsky, a Lockheed Martin company, (NYSE: LMT) will build six production VH-92A Presidential Helicopters under a contract from the U.S Navy. These helicopters are part of the 23 aircraft program of record for the U.S. Marine Corps.

Under the terms of the contract, known as Low Rate Initial Production (LRIP) Lot 1, Sikorsky will begin deliveries of six VH-92A helicopters in 2021. The remaining production aircraft will be delivered in 2022 and 2023. The contract also provides spares and training support.

The contract award follows an affirmative Milestone C decision on May 30 from the U.S. Navy moving the development program into production.

“The authorization to exercise the program’s first Low-Rate Initial Production lot is a testament to the hard work and dedication from the team to deliver this important asset on budget and within the planned acquisition timeline” said U.S. Marine Corps Col. Eric Ropella, PMA-274 presidential helicopter program manager. “This award is an example of acquisition done right.”

Helicopter Proves Ready for Presidential Mission

The VH-92A test aircraft at Patuxent River, Maryland, have proven their production readiness by undergoing rigorous U.S. government testing and operational assessments, which included operating on the south lawn of the White House. The VH-92A has flown over 520 flight test hours establishing the aircraft’s technical maturity and readiness of its mission systems.

“This production decision validates the modifications to Sikorsky’s most successful commercial helicopter making it capable to transport the President of the United States at anytime, anywhere around the world,” said Dave Banquer, Sikorsky VH-92A program director. “Sikorsky has been building and providing helicopter transportation for every U.S. President and Commander in Chief since Dwight D. Eisenhower. We are excited to build the next generation of transport with the VH-92A helicopter.”

Prepared for Production

The VH-92A aircraft will provide safe, reliable and capable transportation for the President, Vice President and foreign heads of state.

This program ensures long term affordability and maintainability by utilizing the FAA certified S-92 aircraft which has industry leading reliability and availability. The S-92 fleet surpassed 1.5 million flight hours in April and averages 14,600 hours of safe flight per month.

Sikorsky and the U.S. Navy integrate mature mission and communication systems into the aircraft. This aircraft provides communication capability to perform the duties of Commander in Chief, Head of State and Chief Executive.

First Training System Delivered

Lockheed Martin delivered and installed the first VH-92A training device at the Presidential Helicopter Squadron HMX-1 in Quantico, Virginia, earlier this year. Marine pilots, avionics technicians and squadron personnel are actively engaged in hands-on learning through the suite of devices. The Flight Training Device (FTD) is a replica of the VH-92A cockpit to give pilots mission-oriented flight training in a simulation-based training device.

The training suite allows maintainers to hone their skills to effectively maintain the aircraft and practice troubleshooting.

For additional information, visit our website: www.lockheedmartin.com/sikorsky.

About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

Sikorsky HH-60W Combat Rescue Helicopters Prepare for Flight Test

February 27, 2019 / WIL BALDWIN

Fully assembled aircraft tracking to first flight

WEST PALM BEACH, Fla., Feb. 27, 2019 /PRNewswire/ — Two fully assembled HH-60W Combat Rescue Helicopters (CRH), built by Sikorsky, a Lockheed Martin company (LMT), are preparing for their maiden flights, which will occur before mid-year at the Sikorsky West Palm Beach site in Florida.

Two HH-60W Combat Rescue Helicopters are at the Sikorsky Development Flight Center in West Palm Beach, Florida, in preparation for flight test. Photo courtesy of Sikorsky.

Both aircraft, which are being built for the U.S. Air Force, were transported late last year to West Palm Beach following final assembly at Sikorsky’s facility in Stratford, Connecticut. The aircraft test readiness review was completed in October 2018. The CRH HH-60W flight test team is currently preparing both aircraft for flight by conducting final installation of instrumentation and ground run testing. This marks formal entry into the flight test program that culminates in Ready Assets Available (RAA), allowing the Air Force to declare Initial Operational Capability (IOC).

“Having these initial HH-60W helicopters in West Palm Beach for flight test is an exciting time for the Sikorsky team. It is the first step toward a low rate initial production decision later this year, which will allow Sikorsky to provide a constant production flow of aircraft to the warfighter,” said Greg Hames, Sikorsky director, Combat Rescue Helicopter program. “This is the point in the program when Sikorsky begins providing new aircraft into the warfighters’ hands, initiating transition to the vastly more capable and reliable HH-60W Combat Rescue Helicopter.”

The first of the two HH-60W aircraft will enter flight test with the new Tactical Mission Kit. The integration of sensors, radar, and multiple defense systems will bring added intelligence into the cockpit, enhancing pilots’ situational awareness to complete missions, which is key to improving aircraft and isolated personnel survivability. Sikorsky’s HH-60W team completed the System Configuration Test Readiness Review milestones for the Tactical Mission Kit last year.

The HH-60W hosts a new fuel system that nearly doubles the capacity of the internal tank on a UH-60M Black Hawk, giving the Air Force crew extended range and more capability to rescue those injured in the battle space. The CRH specification drives more capable defensive system, vulnerability reduction, weapons, cyber-security, environmental, and net-centric requirements than currently held by the HH-60G.

“Our team is working every day to build and deliver a superior quality helicopter to the U.S. Air Force for this critical mission,” added Hames. “Both Sikorsky and the Air Force remain committed to achieving a low rate initial production decision this year and getting this much-needed aircraft to our air men and women out in the field.”

A total of nine aircraft will be built in Connecticut during the Engineering Manufacturing Development (EMD) phase of the program ― four EMD aircraft and five System Demonstration Test Articles. The Air Force program of record calls for 112 helicopters to replace its aging HH-60G Pave Hawk helicopters.

For more information, visit www.lockheedmartin.com/crh.

About Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.