In an SEC filing yesterday, Hawker Beechcraft said its losses for all of 2011 could total $481.8 million, including $304.9 million in restructuring and impairment charges, versus a $173.9 million loss in 2010. Subtracting the losses from the first through third quarter, this means that Hawker Beechcraft could post a fourth-quarter loss of $267.1 million. These 2011 numbers, however, are still preliminary and could change, the company noted.
Despite the increasingly uncertain economic outlook, trading conditions for companies making their living from the air transport aftermarket are improving, according to analysts at Swiss bank UBS.
Bryan Moss, the former president and vice chairman of Gulfstream, has joined private investment firm Guggenheim Partners as the chairman of its recently restructured business aircraft investment division. The company, which manages more than $80 billion in assets, provides investment management, investment banking and capital market services among other offerings to corporations, governments and individuals.
“We believe the recent improvement in our survey and many of the other key indicators that we monitor, including increased flight activity and lower used inventories, are reflective of an early-stage recovery,” UBS Investment Research U.S. aerospace and defense analyst David Strauss wrote in his firm’s latest monthly business jet market report.
In its latest monthly business jet report, released last week, investment research firm UBS saw a slight increase in the overall used aircraft inventory in November, its fourth straight monthly increase following a steady declining trend over the past 14 months. Available aircraft inventories were 3 percent higher than those in July.
Revenues at Berkshire Hathaway’s NetJets fractional aircraft subsidiary climbed 17 percent during the first nine months of this year versus a year ago “due to an increase in worldwide flight revenue hours and increased fuel cost recoveries, partially offset by lower management fees due to fewer aircraft in the NetJets program.” According to the third-quarter financial report, NetJets logged pre-tax earnings of $158 million in the first
Conditions for general aviation businesses “have noticeably improved” in the year since the last NBAA Convention, according to New Jersey-based aviation consultant Brian Foley. “There’s an entire spectrum of the industry seeing these better results, including MRO, FBO, charter and fractional companies,” he said.
The business jet market index from UBS Investment Research last month fell a further 8 percent, to 37, the second consecutive decrease and below the threshold of 50–the median above which a growing market is indicated and below which deterioration is seen. This follows a stable first half, in which the index held at 50–meaning stabilized conditions–for three consecutive surveys.
The latest business jet market index from UBS Investment Research fell a further 8 percent, to 37, the second consecutive decrease and below the threshold of 50–the median above which a growing market is indicated and below which deterioration is seen. This follows a stable first half, in which the index held at 50–meaning stabilized conditions–for three consecutive surveys.
UBS Investment Research’s May business jet index came in at 50, indicative of a stable market and in line with its previous two surveys in January and March. “This recent plateau follows increases in our index over our prior eight surveys, going back to late 2008,” UBS said.
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