Weekly Wrap-up Video Update 4/8/16
Here are the top aviation news stories that you may have missed this week. Let us know what you think by commenting below. Be sure to subscribe on Youtube to be the first to get the Weekly Wrap-up Video Updates. Also, if you missed last week’s Wrap-up, you can catch it here.
Daher’s Record Revenues
Propelled by its aviation division, Daher reached record high revenues in 2015. The French aircraft manufacturer, which also provides parts for Airbus and Gulfstream, earned €1.17 billion in revenues. During its strong year, Daher also was able to deliver 55 TBM 900s.
This week the company also announced the TBM 930, an upgraded version of the 900. The aircraft will have the same performance and technical details but will be equipped with the Garmin G3000. The 930 will cost $4.1 million, roughly $225,000 more than the TBM 900.
Pilatus’ Global Orders
Pilatus reported a significant increase in customer orders in 2015. 1,367 aircraft were ordered last year, more than double its previous global order count of 561 in 2014. The company was able to also increase PC-12 sales to 70 airframes from 66, the majority of which coming from North America.
Despite the news, Pilatus experienced a decrease in sales, profit and operating income. The company also sold six aircraft less overall compared to 2014. The preparations and expenditure to bring the PC-24 to market impacted Pilatus’ financial results and will continue to into 2016.
Bombardier’s Large Order
Bombardier announced this week that it has secured a firm order for 20 Challenger 350’s from an undisclosed buyer. The deal is worth an estimated $534 million.
This news comes as a welcome boost for the company which has experienced significant cancellations in 2015. Last year’s business jet cancellations exceeded orders by 24 aircraft.
Alaskan To Buy Virgin
Alaska Airlines has agreed to purchase Virgin America for $2.6 billion. The Alaska Air Group hopes that consolidation will help the company increase its reach within the United States West Coast. If approved, the deal is expected to close by January 1st, 2017 and a merger of their respective operating certificates would occur early in the following year.
Although Sir Richard Branson would receive a significant payout in the deal, he stated,
“I would be lying if I didn’t admit sadness that our wonderful airline is merging with another. Because I’m not American, the US Department of Transportation stipulated I take some of my shares in Virgin America as non-voting shares, reducing my influence over any takeover. So there was sadly nothing I could do to stop it”
UAV’s Over the Public
The FAA is considering relaxing rules related to minimum drone operating distances around people. Currently, drone operators must keep the devices clear from anyone who is not involved in the flight. A group of industry advisors proposed allowing small drones to maintain a minimum 20-foot distance above and 10-foot lateral distance from people. Drones half a pound or less would have no distance restrictions.
Many believe that flying over people will be necessary for the expansion of commercial drone operations in the future. The FAA has not provided a timeline in which it will make a decision on the subject but said the agency will make it a priority.
5280 Aviation is a Denver based team of aviation experts specializing in aircraft sales and consulting. Weekly, 5280 Aviation brings you a curated list of aviation news stories that you may have missed. We keep our finger on the pulse of the industry so you don’t have to. Visit aircraft-sales.com and learn more about our services and how we will help you.