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AAR Reports Record Quarterly Earnings

- 121% growth in income from continuing operations for the fourth quarter;
89% for the year
- Fourth quarter sales growth of 21%; annual sales growth of 20%
- Record net income of $12.9 million for the fourth quarter
- Cash flow from operations of $22 million for the fourth quarter

July 12

AAR CORP. (NYSE:AIR) today reported fourth quarter net sales of $253.5 million and ncomefrom continuing operations of $12.9 million or $0.31 per diluted share. For the fourth quarter of last year, the Company reported net sales of $209.9 million and income from continuing operations of $5.8 million or $0.17 per diluted share. Sales from new supply chain programs, the ramp up of operations at the Company's Indianapolis maintenance facility and continued strong demand for specialized mobility products were the primary drivers of the 21% year-over- year sales growth for the quarter as the Company capitalized on the trends of MRO outsourcing and value-added supply chain management solutions. Income from continuing operations increased 121% in the fourth quarter due mainly to higher volumes, improved margins and operational efficiencies.

For the fiscal year ended May 31, 2006, the Company reported net sales of $897.3 million and income from continuing operations of $35.2 million or $0.94 per diluted share. In the prior year, net sales were $747.8 million, and income from continuing operations was $18.6 million or $0.55 per diluted share. The same drivers that fueled the growth in the fourth quarter contributed to the 20% sales growth and 89% growth in income from
continuing operations for the year.

"Fiscal 2006 was an excellent year for AAR," said David P. Storch, Chairman, President and Chief Executive Officer of AAR CORP. "During the year we launched several significant new programs, raised $150 million in capital to fund future growth and reported solid financial results, including the record net income achieved in the fourth quarter. We strengthened the balance sheet and our overall financial position throughout the year, increasing stockholders' equity by 34% to $423 million and finishing the year with $205 million of cash and amounts available from our credit lines. I believe the Company has successfully completed its transition from recovery to health."

Following are highlights for each segment:

-- Aviation Supply Chain -- Sales increased 12% for the quarter and
18% for the year compared to the same periods a year ago. New
programs with Mesa Air Group and the United Kingdom Ministry of
Defence, as well as overall robust demand for the Company's parts
supply products and repair services, translated into strong sales and
margin gains.

-- Maintenance, Repair and Overhaul -- Sales increased 57% for the
quarter and 63% for the year compared to the same periods a year ago.
The addition of sales from AAR's Indianapolis-based heavy maintenance
operation was the major driver for the sales growth. Volumes were
also higher at the Company's aircraft maintenance operation in
Oklahoma City and landing gear repair operation in Miami.

-- Structures and Systems -- Sales increased 19% for the quarter and
20% for the year compared to the same periods a year ago. All
businesses within this segment experienced growth in sales for the
year, with the majority of the growth from continued high levels of
demand for specialized mobility products. Margin pressure related to
product mix within this segment continued in the fourth quarter, while
overall performance in this segment remained strong.

-- Aircraft Sales and Leasing -- Operating income for this segment
increased significantly in the fourth quarter and for the year versus
the same periods last year. One aircraft was added to a joint venture
during the fourth quarter, bringing the total number of aircraft held
in joint ventures to 16 at May 31, 2006. The Company also owns
7 aircraft outside of joint ventures.

Sales to defense and commercial customers grew significantly during fiscal 2006. Growth in defense sales was 25% for the fourth quarter and 24% for the year. Growth in commercial sales was 21% for the quarter and 19% for the year.

The gross profit margin was 18.9% in the fourth quarter, up from 16.7% in the fourth quarter of last year. For the year, the gross profit margin was 18.3% versus 16.2% in the prior year. Selling, general and administrative costs increased for the quarter and the year as part of the Company's growth strategy, but decreased as a percentage of sales. In addition, improved performance in the aircraft joint ventures drove higher profits reflected in equity in earnings of joint ventures. The operating profit margin reached 8.0% in the fourth quarter and 7.2% for the year. Operating profit margins for the same periods last year were 4.3% and 4.5%, respectively.

The Company generated operating cash flow of $22 million and reduced its net interest expense by $0.5 million in the fourth quarter. Large investments in working capital during the first three quarters of fiscal 2006 resulted in an operating cash outflow of $40 million for the year. These investments fueled significant growth for the Company and are currently earning solid returns as reflected in the operating results.

Storch continued, "The Company is in a great position to execute its growth strategy and provide commercial and defense customers with new and innovative solutions to meet their maintenance, supply and logistics requirements. During the year, we strengthened our capital structure, made numerous investments and aligned our capabilities to high-growth markets."

Significant Events in Fiscal 2006

Commercial Aviation Market

-- Selected to provide end-to-end supply chain solution for Mesa Air
Group CRJ 200/700/900 and ERJ 145 regional jets
-- Selected by BAE Systems and ATR to provide component support for
regional aircraft
-- Signed agreements with China Airlines, Shanghai Airlines and China
Eastern Airlines (Yunnan) for landing gear maintenance, repair and
overhaul

Defense Services Market

-- Selected to support United Kingdom's Royal Air Force E-3D AWACS
program
-- Signed an agreement to provide cargo systems for the Airbus A400M
military transport aircraft
-- Awarded a contract to provide pallets for the U.S. Air Force

Financial

-- Issued $150 million of 1.75% convertible senior notes due in 2026
-- Acquired $50.6 million of the 2.875% convertible senior notes due
2024, or approximately 76% of the previously outstanding principal
amount, in exchange for 2.72 million newly issue shares of common
stock
-- Retired $7.2 million of the 6.875% senior notes due in December 2007

Other

-- Completed certification milestones for Malaysian joint venture, AAR
Landing Gear Services Sdn. Bhd.
-- Received special recognition from the FAA for earning their Diamond
Certificate of Excellence for training for the second consecutive year

AAR is a leading provider of products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. More information can be found at .

SOURCE AAR CORP.
 
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Boeing Projects $2.6 Trillion Market for New Commercial Airplanes

LONDON, July 12

Boeing (NYSE: BA) forecasts a $2.6 trillion market for new commercial airplanes over the next 20 years. Strong market demand for new airplanes will lead to a world fleet with significantly improved environmental performance.

These new airplanes will accommodate a forecasted 4.9 percent annual increase in passenger traffic, and a 6.1 percent annual increase in air cargo traffic.

The Boeing Company released its 2006 Current Market Outlook today in London. The report, at http://www.boeing.com/commercial/cmo/ , is Boeing's world outlook for the future of commercial jet airplanes.

Boeing projects a need for approximately 27,200 new commercial airplanes (passenger and freighter), doubling the world fleet by 2025. The vast majority of these new airplanes will be in the single-aisle (100-240 seats) and twin-aisle (200-400 seats) categories.

"We're forecasting a continued strong long-term demand for new airplanes over the next 20 years," said Boeing Commercial Airplanes Vice President of Marketing Randy Baseler. "These airplanes will take people and products where they need to travel, as never before. Improved fuel efficiency and increased range will allow airlines to take more travelers directly where they want to go, when they want to go. New, much quieter airplanes with significantly reduced emissions will permanently change the character of the world airplane fleet."

On a delivery-dollar basis, the largest market is projected to be the Asia-Pacific region, with 36 percent of the $2.6 trillion total -- a result of the demand among Asian carriers in that market for more twin-aisle airplanes. North America will make up 28 percent of the delivery dollars and Europe will make up 24 percent. Deliveries to airlines in Latin America, the Middle East and Africa will represent a total of 12 percent of the delivery dollars between 2006 and 2025.

Over the next 20 years, airlines will take delivery of approximately:

- 3,450 regional jets - 90 seats and below
- 16,540 single-aisle airplanes - 100-240 seats, dual class
- 6,230 twin-aisle airplanes - 200-400 seats, tri-class
- 990 airplanes 747-size or larger - more than 400 seats, tri-class

Combined with the retained fleet, these new deliveries will result in a world commercial airplanes fleet of nearly 36,000 airplanes by 2025.

"The single-aisle and twin-aisle categories make up about 86 percent of the market value in our forecast," Baseler said. "In the long-haul transoceanic and Asia-Europe markets, twin-aisle airplanes will dominate the world fleet, providing more frequencies and increased nonstop service. The 747-and-larger aircraft that typically would operate in the Asia-related markets and the North Atlantic will continue to do so. In terms of numbers of airplanes delivered, single-aisles will make up the majority, and will help airlines offer more frequencies and increased nonstop service on domestic and short-haul international flights."

The Current Market Outlook projects that single-aisle and twin-aisle airplanes in the 100 to 400-seat categories will account for almost all of the growth in air travel over the next 20 years. The Boeing product strategy centers on this growth market, offering a family of airplanes that allows customers to maximize their efficiency, increase profitability, and
provide the nonstop, point-to-point flights and frequency choices passengers want.

SOURCE Boeing Co.
 
TAM Submits Request for the Issuance of R$ 500,000,000.00 Debentures

The Complete Submitted Program Totals R$ 1,000,000,000.00

SAO PAULO, Brazil, July 12

TAM S.A. (NYSE:TAM) (BOVESPA: TAMM4), Brazil's largest airline company, requested to CVM (Comissao de Valores Mobiliarios), based on CVM instruction no. 400/03, the filing of the company's first debenture issuing Program ("the Program"), for a total amount of R$ 1,000,000,000.00 (one billion Reais), with a duration of two years. The Program debentures will be non-share convertible, and issued as subordinated, unsecured or guaranteed debentures.

Together with the Program, the company submitted the request to conduct its first public distribution of 50,000 debentures for a total amount of R$ 500,000,000.00, with a term of six years counting from the date of issue.

Investor Relations Contact:
Phone: +011-55-11-5582-9715
Fax: +011-55-11-5582-8149
[email protected]
http://www.tam.com.br (Investor Relations)

Media Contact:
Phone: +011-55-11-5582-8167
Fax: +011-55-11-5582-8155
[email protected]

SOURCE: TAM
 
Embraer Reports Second Quarter 2006 Deliveries and Total Company Backlog

July 14

Embraer (NYSE: ERJ) (Bovespa: EMBR3) today announced its second quarter 2006 deliveries and Company backlog for the Commercial Aviation, Executive Aviation and Defense and Government segments.

Deliveries by segment were as follows:

Deliveries by Segment * 2Q06 1H06
Commercial Aviation

ERJ 145 5 9
EMBRAER 170 9 (1) 17 (2)
EMBRAER 175 4 5
EMBRAER 190 12 20
Total Commercial Aviation 30 51

Executive Aviation
Legacy 600 5 9
Total Executive Aviation 5 9

Defense and Government **
EMBRAER 170 -- 2
EMBRAER 190 1 1
Total Defense Market 1 3

Total 36 63

* Units identified in parentheses were aircraft delivered under operating
leases
** Includes only deliveries of executive jets configured for authority
transportation and aircraft delivered to state-run airlines

Out of the total 145 aircraft expected to be delivered in 2006, Embraer delivered 63 in the first half of 2006.

During the second quarter of 2006, South African Airlink canceled its contract for ERJ 135 aircraft and placed an order for two EMBRAER 170 jets.

Embraer maintains its delivery forecast of 145 aircraft in 2006 and 150 aircraft in 2007.

As of June 30, 2006, Embraer's firm order backlog, including the Commercial Aviation, Executive Aviation and Defense and Government segments, totaled US$10.2 billion.

Embraer's order book by product at June 30, 2006 was as follows:

Aircraft Type Firm Orders Options Deliveries Firm Order Backlog

ERJ 145 Family
ERJ 135 108 2 108 --
ERJ 140 74 -- 74 --
ERJ 145 682 157 676 6
Total ERJ 145 Family 864 159 858 6

EMBRAER 170/190 Family
EMBRAER 170 144 116 111 33
EMBRAER 175 22 -- 19 3
EMBRAER 190 253 286 33 220
EMBRAER 195 36 40 -- 36
Total EMBRAER 455 442 163 292
170/190 Family

Total 1319 601 1021 298

Note: Backlog includes orders for the Defense segment placed by state-run airlines (Satena and TAME).

Investor Relations
Tel: +55 12 3927 4404
Fax: +55 12 3922 6070
e-mail: [email protected]

SOURCE Empresa Brasileira de Aeronautica S.A.
 
Lion Air Orders an Additional 30 Boeing 737-900ERs

- Completes Fleet Renewal Commitment
- Order to Bring Total 737-900ERs in Lion Air's Fleet to 60

FARNBOROUGH, England

July 17

The Boeing Company (NYSE: BA) and Jakarta-based Lion Air today announced that the airline exercised its purchase rights and ordered an additional 30 737-900ERs (Extended Range). Valued at more than $2.2 billion at list prices, deliveries of these additional 737-900ERs are scheduled to begin in early 2010 and continue through 2012.

The agreement was announced by Boeing Commercial Airplanes President and CEO Alan Mulally and Lion Air President Director Rusdi Kirana at the Farnborough Air Show. Lion Air, the launch customer for the 737-900ER, announced its first order for 30 737-900ERs and 30 purchase rights in July 2005. These two orders combined total 60 airplanes. Deliveries of the first order are scheduled to begin in 2007.

The order was recently included on the Boeing Commercial Airplanes Orders and Deliveries Web site, attributed to an unidentified customer.

"The Next-Generation 737 is the most efficient single-aisle family today, and we are thrilled that Lion Air has selected the 737-900ER to support its expansion and fleet modernization plans," Mulally said. "The 737-900ER increases the 737 family's range and seat capability, and it shares the same industry-leading reliability of the world's most successful airplane family. Lion Air has been a great launch customer, and we are looking forward to delivering the very first 737-900ER to Lion Air in 2007."

The 737-900ER, the newest member of the Next-Generation 737 airplane family, increases the capability of the 737 by carrying more passengers and flying farther.

"Maximizing the unprecedented economic advantages of the 737-900ER is the key to our future growth as we expand our routes and add new destinations within our growing market," said Kirana. "We look forward to introducing the 737-900ER into Lion Air's fleet and to our growing base of customers."

The 737-900ER is the same size as today's 737-900, but with the addition of a pair of exit doors and a flat-rear pressure bulkhead, it can carry 26 additional passengers, raising the maximum capacity from 189 to 215 in a single-class configuration. Additionally, Blended Winglets, advanced technology wing enhancements and auxiliary fuel tanks will give the 737-900ER an increased range of 3,200 nautical miles (5,925 kilometers) -- 500 nautical miles more than the 737-900.

"This fleet will help meet Lion Air's strategic expansion goals," said Dinesh Keskar, Boeing Commercial Airplanes vice president of Sales, South-Southeast Asia. "With more range and the lowest operating cost of any single-aisle jet in its class, the 737-900ER is an ideal fit to deliver superior economics and premier service."

Lion Air operates an all-Boeing fleet and is the largest low-cost airline in Asia with traffic reaching one million passengers a month since the airline's inception in June 2000.


SOURCE Boeing Co.
 
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Boeing, Pegasus Aviation Finance Company Announce 787 Order

Blue Panorama to Lease 787s From Pegasus

July 18

The Boeing Company (NYSE:BA) added another leasing company to its customer base for the 787 Dreamliner by signing an order for six 787-8s from Pegasus Aviation Finance Company of San Francisco, Calif. Pegasus becomes the third leasing company to order the all-new advanced-technology airplane.

"The flexibility of the 787 makes it appealing for lessors because they want airplane assets that can be transferred across a range of airlines and business models," said John Feren, vice president of Leasing and Asset Management, Boeing Commercial Airplanes. "The elegant balance the 787 offers between standard features and operational flexibility means it will retain higher residual values as lessors market the airplane to a variety of customers. The Pegasus commitment demonstrates the confidence of financiers in the new technology and its unsurpassed economics."

The order is the result of a close teaming effort and agreement among Boeing, Pegasus and Blue Panorama of Italy, which sought an alternate financing tool for the 787s it ordered in July 2004. As part of the agreement, Blue Panorama has transferred its orders for the four 787s to Pegasus and in return will lease the airplanes from Pegasus.

Pegasus ordered two more 787s, in addition to the four assigned from Blue Panorama, for the total of six. Pegasus has not announced a leasing customer for the additional two airplanes.

The transaction represents a net gain of two additional firm orders to the 787 order book.
"Taking possession of these early 787 deliveries places us in a strategic market position on this exciting program," said Rich Wiley, president and CEO of Pegasus Aviation Finance Company. "We are delighted to expand our strong relationship with both Boeing, this being our second new order with them in the past year, and Blue Panorama, who is an existing lease customer. Between our committed orders and our existing portfolio, we have originated over $4.5 billion in new business since the beginning of 2004, showing an exceptional commitment to our airline customers. We have selected Rolls-Royce engines under a TotalCare services package, removing the operational risk for ourselves and more importantly for our customers."

"We are very pleased with this new arrangement. We have revisited the acquisition model of the airplane and determined that leasing is a financial scheme that best fits our current business and operational models," said Franco Pecci, chairman and CEO, of Blue Panorama. "The 787 is a terrific aircraft that offers revolutionary versatility and efficiency to
airlines like Blue Panorama. We are thrilled to be the first airline in Italy and one of the first in Europe to operate this magnificent plane."

The order is valued at approximately $918 million at list prices. Deliveries begin in 2009.

The technologically advanced 787 Dreamliner will use 20 percent lessfuel than today's airplanes of comparable size, provide airlines with up to 45 percent more cargo revenue capacity, and present passengers with ground-breaking innovations including an improved interior environment, wider seats and aisles, larger windows, and other benefits. The 787's
lightweight composite structure makes many of these advances possible.

The 787 will allow airlines to offer more of the comfortable point-to-point travel that passengers want. Development of the 787 is on schedule for first flight in 2007 and entry into service in 2008.


SOURCE Boeing Co.
 
АК&М rating agency assigned to “Terminal” OJSC a “B+” credit rating, outlook positive

July 12

АК&М rating agency assigned to "Terminal" OJSC - a company established by "Aeroflot" OJSC to realize the construction project of "Sheremetyevo-3" terminal - a "B+" credit rating, outlook positive. This means that "Terminal" OJSC has been considered among the borrowers with satisfactory creditworthiness. The risk of full or partial debt restructuring is low. The level of the company's creditworthiness is likely to increase in the future while the project on construction of the new terminal in Sheremetyevo airport is being realized.

The АК&М rating agency's report states that "Terminal" OJSC demonstrates complete professionalism of its management, supported by the current results of the company's work and the provided financial materials on the project.

The rating of efficiency of the management solutions is increased thanks to high quality of the project development, deep analysis on all the stages of performance and attraction of the leading experts. Close cooperation of "Aeroflot" OJSC with "MASH" OJSC, "Vneshtorgbank" OJSC and "Vnesheconombank" will increase reliability of both financial and commercial as well as production and engineering solutions with regard to the project.

Equity investments in the terminal of the largest Russian banks can create more favorable conditions for usage of the borrowed funds and for improvement of the company's financial stability. The very fact that the main shareholders of "Terminal" OJSC are financially sound, reputable companies which are highly interested in the project's successful realization is estimated as a positive factor.

It is emphasized in the rating agency's report that the analysis of the company's main prospective financial indicators reveals that "Terminal" OJSC shows high potential level of the debt load. This has been caused first of all by the character of the project's financing - the main part of the investments will be made in the form of long-term debt funds to be reflected in the high level of debt load, taking into account the considerable period of repayment. At that, the main prospective cash flows will be adequate to the volumes of the debt repayments, and the situation will be characterized by the uptrend in the future. The annual cash receipts since 2009 will exceed the cash outflow, connected with the redemption and servicing of the obtained credits.

Heavy reliance on macroeconomical factors and demand for services have been considered as risk factors. The company's main incomes directly depend on the demand for transportation services. Besides, the traffic flow indicators are characterized by a high degree of volatility. As a large portion of the consumer services rendered in Sheremetyevo-3 terminal will be indented for the citizens of the Russian Federation, the demand for air tickets will, to a large degree, be dependent on the macroeconomical environment in the country and on the personal income level. Decrease of the public welfare against the background of dampening of the economic activity in the companies, using the services of air carriers, can cause the falling demand for transportation services and, as a consequence, to the falling demand for the services offered by Sheremetyevo-3 terminal. The economic growth in the Russian Federation, in its turn, is governed at a large extend by the development of prices for raw materials in the world commodity markets.

According to АК&М, the company also demonstrates potentially high currency risks, as well as the risks connected with the currency exchange regulation, as the terminal is going to cooperate with many foreign airline companies and foreign passengers and, as a consequence, will have to use different world currencies in its operation. As the main portion of the company's income will be denominated in foreign currency, whereas the expenses will be denominated in rubbles, the cash flows will depend on the process of the exchange rate formation in the currency market.

According to Director General of "Terminal" OJSC Kirill Budaev, the rating shows the confidence of the financial community in the company, as well as the project's potential.

It has been reported earlier, that December 30, 2005 "Aeroflot" OJSC and "Terminal" OJSC signed the memorandum of understanding with "MASH" OJSC, "Vneshtorgbank" OJSC and "Vnesheconombank" OJSC, which stipulated that the participation of the banks in the project would consist in extension of financial resources for the project to the amount of 475 million USD for the 13-year period. In June 2002 "Aeroflot" OJSC entered into contracts with "Vneshtorgbank" OJSC and "Vnesheconombank" OJSC stipulating that VTB purchased the share of 25% plus one stock in "Terminal" OJSC, whereas the share of 20% minus two stocks was purchased by VEB. Besides, the banks were going to grant a credit line to "Terminal" OJSC according to the credit agreements signed on the conditions stipulated in the Memorandum.

"Terminal" OJSC is a company established to realize the construction project of a new terminal city in Sheremetyevo airport, which is known as Sheremetyevo-3. The new terminal is going to realize the concept of "hub" (a transfer point) and will allow to improve considerably the quality of the passenger and airline service as well as to increase the traffic capacity of the Moscow airport node in the conditions of the increasing passenger traffic. The construction of Sheremetyevo-3 terminal will be completed in 2007. 2008 the passenger traffic is likely to achieve the scheduled level - 11 million passengers per annum; by 2010 the figure will amount to 11 million.

Sheremetyevo-3 terminal, which will meet all the modern European standards, will allow to integrate all the regular flights in Sheremetyevo airport and considerably increase thereby the demand for transfer flights as well as to optimize both the network routing and the service maintenance for Aeroflot and for other client-airlines.

SOURCE: Aeroflot JSC
 
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AMR Corporation Reports a Second Quarter 2006 Profit of $291 Million

Mainline Unit Revenue Grows 11.7 Percent Year Over Year
Despite Record Load Factors, Rising Fuel Costs Remain a Burden

July 19

AMR Corporation (NYSE: AMR), the parent company of American Airlines, Inc., today reported a net profit of $291 million for the second quarter of 2006, or $1.14 per share fully diluted, compared to a profit of $58 million or $0.30 per share fully diluted, in the second quarter of 2005.

"We are pleased to have earned a quarterly profit -- just our second in the last 22 quarters without the benefit of special items," said AMR Chairman and CEO Gerard Arpey. "Our performance indicates very clearly that we are on the right track, but also demonstrates -- just as clearly -- that we have more work to do to return our company to financial health."

According to Arpey, the stubbornly high cost of fuel and ongoing competitive pressures in the industry remain significant obstacles. "Fuel costs continue to raise the bar in terms of revenue generation, while the growth of low-cost carriers and continuing competition from bankrupt carriers with significant cost advantages drive the need for increased efficiencies and cost savings across all areas of our business," Arpey said.

During the second quarter, the Company paid $374 million more for fuel than it would have paid at the fuel prices prevailing during the same period a year ago. American's mainline cost per available seat mile in the quarter was up 8.5 percent year over year. Excluding fuel, the airline's unit cost for the second quarter was up 1.4 percent year over year.

AMR's full-year 2006 fuel cost estimates have continued to grow. In January, the Company said it expected a full-year average price of $1.95 a gallon and, in April, revised this forecast to $2.07. AMR now forecasts a full-year 2006 average fuel cost of $2.18 a gallon.

In spite of rising fuel costs, Arpey pointed out that AMR continues to enjoy solid revenue momentum. "The combination of capacity restraint, the changes we have made to our network and product offerings, and the consistent, high-quality service provided by our employees has enabled us to drive unit revenues to a level approaching the highs reached in 2000."

American's systemwide load factor -- or the percentage of total seats filled -- hit a record of 82.6 percent during the second quarter. Yield, which represents average fares, increased 7.6 percent compared to the second quarter of 2005, and passenger revenue per available seat mile for the second quarter was up 11.7 percent compared to 2005.

AMR reported second quarter consolidated revenues of approximately $6 billion, an increase of 12.5 percent year over year. Other revenues in the second quarter, including such sources as confirmed flight change, purchased upgrades, Buy-on-Board food services and third-party maintenance work, increased 20.9 percent year over year to $347 million.

"Our summer is off to a strong start, and as always, our employees deserve enormous credit for getting millions of customers where they are going safely, comfortably and on time," Arpey said.

Arpey also pointed out, however, that the second quarter is a traditionally strong period for American, so more performance improvements will be required to sustain profitability through the rest of 2006.

"These results point the way to our continued progress," Arpey said. "We need to keep finding new ways to care for our customers while reducing expenses wherever possible. It's a tall order, but as today's results demonstrate, our team is up to the job."

American continues to execute on the fundamentals of its Turnaround Plan by working together with employees to identify ways to reduce costs, grow revenues, improve the customer experience and simplify its operations, Arpey noted. A few recent examples:
American made a decision in the second quarter to return 19 non-standard 757 aircraft, originally acquired from TWA, when their leases expire in 2007 and 2008. The decision will save more than $50 million in annual lease costs and also allow the Company to avoid costly upgrades and higher required maintenance costs.

In June, American announced the AAdvance Bag Check(SM) program that allows passengers on cruise ships, at hotels and at convention centers to drop off their luggage for American flights at select remote locations.

In May, management and Transport Workers Union (TWU) Local 567 employees at the American Airlines Alliance Maintenance Base, including Texas Aero Engine Services Ltd., American's engine repair facility joint venture with Rolls Royce, set a "breakthrough goal" of obtaining $400 million in value for the airline by the end of 2008. Work teams were formed to focus on such areas as revenue generation, productivity increases and
employee involvement.

Also in May, American began introducing a new service to accept credit and debit cards for onboard purchases, in addition to cash, using wireless handheld devices.

Arpey pointed out that in addition to earning a profit, AMR was able to contribute $149 million to its various defined benefit pension plans since the end of the first quarter, bringing its total 2006 contributions to the plans to $184 million through July 14.

AMR also was able to grow its cash balance, ending the period with $5.7 billion in cash and short-term investments, including a restricted balance of $525 million.


Detailed financial information:

SOURCE: AMR Corporation
 
RADA Signed a $1,270,000 Contract With a Strategic Customer to Provide Avionics Units to Unmanned Aerial Vehicle

FARNBOROUGH, England, July 19

RADA Electronic Industries Ltd. (Nasdaq: RADI) announced today that it has received a P.O. from a strategic customer to provide various avionics systems to an Unmanned Aerial Vehicle. Contract value, which exceeds $1,270,000, covers development and supply of prototype units.

This contract further increases the number of avionics units provided by RADA to various advanced UAV programs and positions RADA as a major supplier of UAV avionics.

Commenting on the contract, Major General (Ret.) Herzle Bodinger, RADA's CEO said, "We are proud to be one of the main providers of avionics units to modern UAVs, both in Israel and in the world."

About RADA:
RADA Electronic Industries Ltd. is an Israel based company involved in the military and commercial aerospace industries. The Company specializes in Avionics systems (Digital Video Recorders, Ground Debriefing Stations, Stores Management Systems, Flight Data Recorders, Inertial Navigation Systems), Trainers Upgrades, Avionics systems for the UAV market, and Electro optic cameras for airplanes and armored vehicles.

SOURCE RADA Electronic Industries Ltd.
 
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Avcorp enters F-35 Partnership with BAE Systems totalling CAD$150 million

- initial production supply of outboard wings for most powerful single-engine fighter ever made
- contract will increase backlog by 40% to CAD$550 million
- new market entry into military stealth aircraft structures

July 19

Avcorp Industries Inc. (AVP on the Toronto Stock Exchange) (the Company) announced today that it has signed a Letter of Intent (LOI) with BAE Systems for the newly named F-35 Lightning II. The LOI requires the Company to provide low-rate initial production of outboard wings for the carrier variant (CV) of the F-35 aircraft. Paul Kalil, President, signed the LOI today during a press conference by BAE Systems at the Farnborough International Show in Farnborough, England.

In his address at the press conference, Paul Kalil stated, "Avcorp is proud to have been selected for this significant role on the F-35 program. Our selection is a testament to the high quality and dedication of our team. This contract will represent a 40% increase in our backlog to approximately CAD$550 million. By entering a new market (military stealth aircraft), Avcorp is diversifying and increasing its capabilities for the next generation of aircraft. We are dedicated to strengthening our capabilities, and in turn, those of the Canadian aerospace industry."

The CV version of the F-35 aircraft is designed for use on aircraft carriers and its structures, such as the outboard wing which must fold up for storage, are built to withstand the additional stresses of aircraft carrier landings and take-offs.

BAE Systems, a principal partner with Lockheed Martin in the F-35 Lightning II team, is responsible for designing, engineering and manufacturing the aft fuselage and empennage (vertical and horizontal tails) for each F-35 aircraft.

Tom Fillingham, Vice President and Deputy Program Manager, BAE Systems advised that the signing of the LOI is the culmination of a six-month evaluation process that ultimately found Avcorp to be the best value supplier for this product, with demonstrated experience, precision machining capabilities, and a reputation for quality, all key assets to the BAE Systems supply chain.

Tom Burbage, Vice President, Program Integration, Lockheed Martin, explains that, "international participation in the F-35 program continues to grow . . . to expand our second source supply chain."

In a ceremony on July 7 at Lockheed Martin in Fort Worth, Texas, the F-35 made its public debut and received its name - Lightning II - which echoes two great fighter aircraft of the past: the World War II-era Lockheed P-38 Lightning and the supersonic Lightning jet developed by English Electric, which later became BAE Systems, in the middle 1950s.

The F-35 Lightning II will replace a wide range of existing aircraft, including AV-8B Harriers, A-10s, F-16s and F/A-18 Hornets for the US and Harrier GR.7s and Sea Harriers for the UK. The F-35 will be the most powerful single-engine fighter ever made.

The inaugural flight of the first F-35, a preproduction conventional takeoff and landing variant, is planned for later this year. Fifteen F-35s will undergo flight test, seven will be used for ground testing and another will validate the aircraft's radar signature.

About BAE Systems:
BAE Systems is an international company engaged in the development, delivery, and support of advanced defense and aerospace systems in the air, on land, at sea, and in space. The Company designs, manufactures, and supports military aircraft, combat vehicles, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defense systems. BAE Systems has major operations across five continents and customers in some 130 countries. The company employs more than 90,000 people and generates annual sales of approximately $25 billion through its wholly owned and joint-venture operations.

About Avcorp:
Avcorp Industries Inc. designs and builds major airframe structures for some of the world's most respected aircraft companies, including Boeing, Bombardier and Cessna. With 50 years of experience, more than 600 skilled employees and a 30,000 square metre (300,000 square foot) facility near Vancouver, Canada, the company's depth and breadth of capabilities are unique in the aerospace industry for a company of its size. Avcorp is a Canadian public company traded on the Toronto Stock Exchange.

More information is available at .

SOURCE Avcorp Industries Inc.
 
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Continental Airlines Announces Second Quarter Profit

Strong revenue growth provides highest quarterly profit since 2001; expects 2007 mainline capacity growth of 5 percent; consolidated capacity growth of 3 percent to 4 percent due to regional jet reduction

July 20

Continental Airlines (NYSE: CAL) today reported second quarter 2006 net income of $198 million ($1.84 diluted earnings per share), a significant improvement over its second quarter 2005 net income of $100 million ($1.26 diluted earnings per share). Excluding special charges, Continental recorded net income of $208 million ($1.93 diluted earnings per share).

Operating income in the second quarter of 2006 was $244 million, more than double that of the second quarter of 2005, in spite of fuel price increases costing over $200 million and including a $60 million accrual for employee profit sharing.

"Our plan is working and as a result, everyone wins," said Larry Kellner, chairman and chief executive officer. "Employees win with profit sharing and stock option gains, customers win with award winning service as reflected by the J.D. Power award and stockholders win with profitability."

During the quarter, ExpressJet notified Continental that ExpressJet intends to retain all 69 regional jet aircraft covered by Continental's previously announced withdrawal notice under the capacity purchase agreement with ExpressJet. Continental expects to replace between 40 and 50 of those regional jets, and has no current plans to replace the remainder. Continental is in advanced discussions to have an operator provide the capacity that it has chosen to replace, at competitive rates under a capacity purchase arrangement.

Other than the 40 to 50 regional jet aircraft that Continental expects a third party to acquire and operate to partially replace the 69 withdrawn ExpressJet aircraft, and two Boeing 777 aircraft that Continental will take delivery of in early 2007, Continental will not take any new aircraft deliveries in 2007. As a result, the carrier anticipates growing its
mainline capacity approximately 5 percent and its consolidated capacity between 3 percent and 4 percent in 2007.

Second Quarter Revenue and Capacity

Passenger revenue for the quarter increased 23.1 percent ($606 million) over the same period in 2005, to $3.2 billion, with double digit percentage growth in each mainline geographic region and in regional jet operations. Additional traffic, both domestic and international, and several fare increases produced significantly higher revenue for the company. Consolidated passenger revenue per available seat mile (RASM) for the
quarter increased 11.0 percent year-over-year due to increased yields and record load factors.

Consolidated revenue passenger miles (RPMs) for the quarter increased 15.2 percent year-over-year on a capacity increase of 10.9 percent, resulting in a record consolidated load factor for the quarter of 82.7 percent, 3.1 points above the same period in 2005. Consolidated yield increased 6.9 percent year-over-year.

Mainline RPMs in the second quarter of 2006 increased 14.3 percent over the second quarter 2005, on a capacity increase of 10.8 percent. Mainline load factor was a record 82.9 percent, up 2.5 points year-over-year. Continental's mainline yields during the quarter increased 6.3 percent over the same period in 2005.

During the quarter, Continental continued to maintain domestic length-of-haul adjusted yield and RASM premiums to the industry.

Passenger revenue for the second quarter of 2006 and period-to-period comparisons of related statistics by geographic region for the company's mainline and regional operations are as follows:
Percentage Increase in
Passenger Second Quarter 2006 vs. Second Quarter 2005
Revenue Passenger
(in millions) Revenue RASM ASMs

Domestic $1,465 18.1 % 12.4 % 5.1 %
Transatlantic 570 25.8 % 4.7 % 20.1 %
Latin America 346 30.6 % 11.2 % 17.4 %
Pacific 217 21.6 % 7.2 % 13.5 %
Total Mainline $2,598 21.6 % 9.7 % 10.8 %

Regional $629 30.0 % 16.6 % 11.5 %

Consolidated $3,227 23.1 % 11.0 % 10.9 %


Second Quarter Financial Results
Continental's mainline cost per available seat mile (CASM) increased 8.1 percent in the second quarter compared to the same period last year, primarily due to record high fuel prices. CASM decreased 1.5 percent holding fuel rate constant, excluding employee profit sharing accruals and special charges.

"After five years of challenges and hard work, it's great to see a pay-off for everyone's efforts," said Jeff Misner, executive vice president and chief financial officer. "But, even with all the progress made, we must continue our focus on eliminating unnecessary costs."

Mainline fuel costs for the quarter increased $216 million over the second quarter of 2005, primarily due to a 26.4-percent increase in fuel prices compared to the same period last year. During the quarter, the price of West Texas Intermediate crude oil closed at a peak of $75.17 per barrel on April 21, 2006, with Gulf Coast jet fuel closing at a high of $93.39 per barrel on June 9, 2006.

Continental hedged approximately 25 percent of its expected fuel requirements for the second quarter of 2006, resulting in an $11 million benefit. In addition, using crude oil swaps, the company has hedged approximately 33 percent of fuel requirements for the third quarter with an average swap price of $73.18 per barrel and 13 percent for the fourth
quarter with an average swap price of $75.49 per barrel.

Continental continued to improve the fuel efficiency of its fleet, completing the installation of winglets on 157 aircraft to date. Winglets reduce drag on an aircraft's wings, increasing fuel efficiency by up to five percent.

By year-end, the company expects to have improved fuel efficiency by nearly 25 percent per available seat mile as compared to 1998, as a result of several factors, including fleet modernization, implementation of fuel-saving technology like winglets and improved operating procedures.

During the second quarter, wages, salaries and related costs increased 14.6 percent (5.4 percent excluding employee profit sharing) over the second quarter 2005. Continental anticipates that its employees will benefit from profit sharing for 2006 and has accrued $60 million of employee profit sharing expense through the first six months of 2006.

During the second quarter, Continental recorded net special charges of $10 million, consisting of a $14 million settlement charge related to lump-sum payments to retiring pilots and a $4 million reduction of previous charges related to permanently grounded MD-80 aircraft.

Continental ended the second quarter with approximately $2.5 billion in unrestricted cash and short-term investments.


SOURCE Continental Airlines
 
Orlando International's largest carrier doubles profit in 2Q

July, 20

Southwest Airlines Co., the largest carrier at Orlando International Airport, says second-quarter 2006 earnings doubled as the airline's hedging program helped offset rising jet fuel costs.

The Dallas-based low-cost airline reported net income of $333 million, or 40 cents a share, compared with second-quarter 2005 earnings of $144 million, or 18 cents a share.

Excluding items related to accounting for derivative instruments and hedging activities, Southwest posted earnings of $273 million, or 33 cents a share.

Revenue was up 26 percent to $2.45 billion from $1.94 billion a year ago.

Southwest's results beat forecasts by analysts surveyed by Thomson First Call. The analysts were expecting average earnings of 26 cents a share.

Southwest CEO Gary Kelly says that because of reduced capacity by its competitors, demand for seats on Southwest was "robust." Southwest (NYSE: LUV) reported a record quarterly load factor, or occupancy, of 78 percent, up 5.5 points from second-quarter 2005.

Passenger traffic in the second quarter was up 15.3 percent to 17.84 billion revenue passenger miles. A revenue passenger mile is defined as one paying passenger flown one mile.

Southwest's unit costs were up 11.6 percent, mostly because of higher jet fuel costs. The airline received a $225 million second-quarter 2006 cash benefit from its hedging position. The airline is more than 73 percent hedged for the remainder of 2006.

"While we cannot control the price of energy, we have insured ourselves with years of price protection that will allow us time to make the necessary changes to maintain our profitability and financial health," Kelly says.

SOURCE Orlando Business Journal
 
Sun Country Airlines Inc. has agreed to be bought by Twin Cities businessman Tom Petters.

July 21

The board of the Mendota Heights carrier, which competes with Northwest Airlines Corp., voted to approve the deal late Thursday, a spokeswoman said. Terms were not disclosed, but Petters and a Minneapolis investment firm, White Box Advisers will reportedly acquire a 100 percent stake of Sun Country.

The airline's shareholders are expected to vote on the deal Friday. Federal approval could take up to 60 days.

Sun Country lost $11 million last year on revenue of about $204 million; CEO Shaun Nugent has attributed the loss to the price of fuel, which has skyrocketed over the past two years. The airline carried 1.6 million passengers, up 30 percent from the year before.

Since emerging from Chapter bankruptcy 11 in 2002, Sun Country cautiously but steadily built its business and schedule, focusing on a core set of major cities and leisure markets while keeping costs low.

Late last year the company began a hunt for up to $18 million in capital. Petters came forward as a possible investor in late January.

SOURCE Minneapolis/St. Paul Business Journal
 
10-Aug-2006

Ilyushin to stop making 300-series airliners


Falling sales have forced the Voronezh Aircraft Joint Stock Company (VASO) to stop producing Il-96-300 passenger jets and to manufacture only Il-96-400s.

"Sales of the 300s have sharply dropped recently," said Andrei Lipovetsky, spokesman for the leasing company Ilyushin Finance Co. "Producers and shareholders are pinning their hopes on a new long-haul airliner, the Il-96-400, especially its cargo derivative."

Ilyushin Finance said the price of the new plane, compared to the Il-96-300, would rise 10%. The Il-96-400's avionics will be all-Russian, as will its PS-90A1 turbojet engines.

The new Il-96 version, with a maximum payload of 92 metric tons, has a non-stop range of 5,100 kilometers, and with a payload of 40 ton, 13,200 kilometers. The plane will be 9.5 meters longer, and its seating capacity increased from 300 to 436 passengers.

"The liner's prime asset is its lower energy consumption," said Vitaly Baitin, an expert at Tsentr-Invest Securities. "The Il-96-300 has outlived its day because it was designed in the late 1980s when no one was concerned about fuel saving."

Lipovetsky said the plant already had an order for 20 new planes, with promotion talks under way with Syria, Zimbabwe, Iran and China. Russian airlines have also become interested. "Our company used to fly Il-96-300s," said Grigory Bautin, head of the public relations department of Atlant-Soyuz government airlines. "Now we have ordered two Il-96-400 cargo airliners. They will enter service in the middle of the next year."

Aeroflot has adopted a cautious attitude to the 400s. Irina Dannenberg, a company spokesman, said: "Until the plane takes on a real form, and its details agreed, our company is unlikely to buy it." The national carrier has six Il-96-300s in service, and a contract for six more.

However, Baitin said the Il-96-400 has a promising future given the high oil price.

Source : gazeta.ru via RIA Novosti ( http://en.rian.ru/analysis/20060810/52461639.html )
 
Spirit AeroSystems Prices Initial Public Offering at $26.00/share

Nov. 21

Spirit AeroSystems Holdings Inc. (NYSE: SPR) today announced the pricing of the initial public offering of its Class A Common Stock at $26.00 per share. The offering will consist of 55,083,334 shares, of which 10,416,667 shares will be sold by Spirit and 44,666,667 shares will be sold by existing stockholders. The selling stockholders have granted the underwriters a 30-day option to purchase up to 8,262,500 additional shares to cover over-allotments, if
any.
The Class A Common Stock will be listed on the New York Stock Exchange under the symbol "SPR" and is expected to begin trading on Tuesday, Nov. 21, 2006. Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. Incorporated are acting as joint book-running managers for the offering.
Copies of the final prospectus relating to the offering, when available, may be obtained from:
Credit Suisse Prospectus Department, One Madison Avenue, New York, NY
10010; tel: 1-800-221-1037

Goldman, Sachs & Co., Attn: Prospectus Dept., 85 Broad Street, New York,
NY 10004; fax: 1-212-902- 9316, or email at [email protected]

Morgan Stanley, 180 Varick Street 2/F, New York, NY 10014; tel: 1-866-718-1649, or email at [email protected]
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on Nov. 20, 2006. Thispress release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Spirit AeroSystems:
Spirit AeroSystems is the largest independent non-OEM designer and manufacturer of aerostructures in the world. Headquartered in Wichita, Kan., it began operations in June 2005. In addition to its Kansas facility, Spirit has facilities in Oklahoma and the U.K.

SOURCE Spirit AeroSystems Holdings Inc.
 
AerCap Holdings N.V. Announces the Pricing of the Initial Public Offering of Its Ordinary Shares at $23.00 Per Share

Nov. 20

AerCap Holdings N.V. ("AerCap") today announced the pricing of the initial public offering of its ordinary shares at $23.00 per share. The securities offered include 6,800,000 shares to be issued and sold by AerCap as well as 19,300,000 shares to be sold by shareholders of AerCap. The selling shareholders have granted to the underwriters an overallotment option to purchase up to 3,915,000 additional ordinary shares. The ordinary shares are expected to trade beginning on November 21, 2006 on the New York Stock Exchange under the symbol "AER."
AerCap intends to use the net proceeds it receives from the offering to repay a portion of its outstanding senior secured and junior subordinated term loans incurred in connection with its acquisition of AeroTurbine in April 2006.
AerCap is an integrated global aviation company with a leading market position in aircraft and engine leasing, trading and parts sales. AerCap also provides aircraft management services and performs aircraft and engine maintenance, repair and overhaul services and aircraft disassemblies through its certified repair stations. AerCap owns and manages a fleet of over 200 aircraft, owns 61 engines and has one of the largest new aircraft order books among operating lessors. AerCap is headquartered in The Netherlands and has offices in Ireland and the United States.
Morgan Stanley, Goldman, Sachs & Co., Lehman Brothers Inc. and Merrill Lynch are bookrunners for the offering. The offering of ordinary shares will be made only by means of a prospectus.
When available, a copy of the prospectus relating to this offering may
be obtained from:
Morgan Stanley
180 Varick Street 2/F
New York, NY 10014
[email protected]
1-866-718-1649
A registration statement relating to these securities was declared effective on November 20, 2006. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
This press release may contain forward-looking statements that involve risks and uncertainties. In most cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms or similar terminology. Such forward-looking statements are not guarantees of future performance and involve significant assumptions, risks and uncertainties, and actual results may differ materially from those in the forward-looking statements.

Contact Information AerCap:

Keith Helming
Chief Financial Officer
+31 20 655 9670
[email protected]

Frauke Oberdieck
Corporate Communications
+31 20 655 9616
[email protected]


SOURCE: AerCap Holdings N.V.
 
General Dynamics Awarded $16 Million to Support Naval Facilities Engineering Command

Nov. 27

The U.S. Naval Facilities Engineering Command (NAVFAC) Information Technology Center (NITC) has awarded General Dynamics Information Technology, a business unit of General Dynamics (NYSE: GD), a contract to support its Single Platform Maximo Application Systems, a commercial off-the-shelf software enterprise deployment initiative. The total potential value of the contract if all options are exercised is $15.8 million over three years.
General Dynamics will establish and deploy a customized and integrated Single Platform Maximo (SPM) and Navy Enterprise Transportation (NET) system throughout the NAVFAC Facility Engineering Center community world-wide. SPM and NET are based on commercial off-the-shelf (COTS) enterprise software applications for managing physical assets for improved utilization, reliability and availability. General Dynamics will also provide project management; configuration and change management; operation and maintenance; interface development; configuration changes; user and technical training; and documentation development.
"Asset management is a vital component to organizational effectiveness," said Al Whitmore, senior vice president of Navy/Air Force Systems for General Dynamics Information Technology. "We are proud to apply our superior technical and functional expertise in COTS enterprise deployment initiatives to support NAVFAC's commitment to Navy and Marine Corps combat readiness."
General Dynamics has supported the NITC since 1995 in the areas of application development and implementation, network engineering, Oracle(TM) database administration and help desk administration. Additionally, General Dynamics has provided customization and user training support for NITC's Maximo Center of Expertise initiative.


SOURCE General Dynamics Information Technology
 
Pratt & Whitney and China Eastern Airlines Form CFM56(R) Engine Overhaul Joint Venture

Nov. 28

Pratt & Whitney, a United Technologies Corp. company (NYSE: UTX), and China Eastern Airlines signed a joint venture agreement today in Shanghai to create a CFM56(R) engine overhaul facility in Shanghai.
As part of the deal, China Eastern Airlines (CEA) awarded Pratt & Whitney a 15-year maintenance service agreement to maintain the airline's fleet of CFM56(R) engines. Financial terms of the agreement were not disclosed. The new facility will overhaul CFM56-3, -5B and -7 engines. The facility's in-depth repair capabilities, 10-meter test cell with capability of up to 75,000 pounds of thrust and state-of-the art information technology system will provide maintenance, repair and overhaul (MRO) services to airline customers in China and the Asia Pacific region starting in 2008. Construction is expected to begin in the first half of 2007.
"Pratt & Whitney has the best cutting edge technology and advanced repair capability in engine MRO," Cao Jianxiong, vice president of China Eastern Aviation Group Company and president of China Eastern Airlines, said at the signing ceremony. "We are pleased to take this next, significant step with our MRO partner, Pratt & Whitney, and are confident we will build Pratt & Whitney Shanghai Aircraft Engine Maintenance Company Ltd. into the best CFM56(R) engine overhaul center in the world."
"Our partnership with China Eastern Airlines, the largest CFM56(R) engine operator in the Asia Pacific region, strengthens Pratt & Whitney's position as a unique OEMRO(TM) provider," said Steve Finger, Pratt & Whitney president. "Pratt & Whitney is an engine Original Equipment Manufacturer (OEM) that provides overhaul and repair services to the entire MRO market, including Pratt & Whitney engines and others. This joint venture will provide CEA and other Asia Pacific airlines with an excellent quality and cost effective alternative for their CFM56(R) engine overhaul and repair needs."
The joint venture plans to induct the first engine in 2008. Once fully operational, the center will overhaul between 200-300 engines per year and employ approximately 800 people. Extensive on-site repair capability will reduce engine overhaul costs and turn around time.
"We are thrilled to become partners with such a recognized, quality minded company as China Eastern Airlines," said Jim Keenan, senior vice president and general manager, Pratt & Whitney Global Service Partners. "This initiative supports Pratt & Whitney Global Service Partners' strategy to expand our worldwide network and become the Number One independent supplier of CFM56(R) engine MRO services in the industry.
"Bringing this capability to the growing, vibrant city of Shanghai is a great source of pride for us," Keenan said. "It's clear to me that the future is very bright for China Eastern Airlines, and very bright for our new joint venture in Shanghai. We look forward to many years of successful partnership."
China Eastern Airlines Co., Ltd., was established in June 1988 and it has maintained speedy and healthy growth in the past 18 years. It was successfully transformed into a shareholding company in 1997 and listed in New York, Hong Kong and Shanghai stock exchanges. Currently it has 200 Boeing and Airbus aircraft with an average age of 6.56 years, and the fleet is the youngest in the world. China Eastern operates more than 420 air routes including more than 80 international routes, forming a hub and spoke network centering on Shanghai, radiating across the whole country and linking to Southeast Asia, Japan, South Korea, Hong Kong, Europe, North America and Australia. It has code sharing relations with Chinese and foreign airlines on many domestic and international routes, providing convenient air travels for Chinese and foreign passengers.

Contact:
Robin Salisbury
860-565-8220
[email protected]

SOURCE Pratt & Whitney
 
TAM Expands Fleet with V2500-Powered A320 Order Valued at $160 million for Pratt & Whitney


Nov. 28

Pratt & Whitney, a United Technologies Company (NYSE: UTX), has won business worth $160 million as its share of an order from TAM Airlines for International Aero Engines (IAE) V2500 engines to power the airline's fleet of 15 new Airbus A320 family aircraft. The order, made up of 11 A319s and four A321s, is backed by a long-term V2500Select(SM) aftermarket agreement.
"We are extremely proud that TAM has once again chosen the dependable V2500 engine to power its fleet expansion," said Todd Kallman, president of Pratt &Whitney Commercial Engines and IAE board member. "TAM is Brazil's largest airline and this fleet expansion is another demonstration of their success. We are proud to be a part of TAM's growth and look forward to continuing our partnership into the future."
TAM currently operates a fleet of 38 V2500-powered A320s, the first of which entered service with the carrier in 1999.
"At TAM, we believe one of our competitive advantages is our innovative approach to services and products, something we recognize in IAE, the V2500 and in V2500Select(SM)," said TAM President Marco Bologna. "Additionally, by choosing the V2500 to power, in particular, our new Airbus A321s, we are acknowledging the engine's superior reliability and low fuel burn even in the most demanding of operational circumstances. We're delighted to continue our relationship with the team at IAE."
The V2500-A5, with 22,000 to 33,000 pounds of thrust, is available in seven different thrust settings to power the Airbus A319, A320 and A321 family of aircraft as well as the A319 Corporate Jet.
IAE is a multinational aero engine consortium whose shareholders comprise Pratt & Whitney, Rolls-Royce, the Japanese Aero Engines Corp. and MTU Aero Engines. More than 1,300 V2500-powered aircraft have been delivered and the worldwide fleet has accumulated more than 40 million flying hours.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies provides high-technology products and services to the aerospace and building industries.

Contact: Matthew Perra
+1 (860) 565-8938
[email protected]

SOURCE Pratt & Whitney
 
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Mexican Airport Operator OMA Announces Initial Public Offering on the NASDAQ Global Select Market and the Mexican Stock Exchange

Initial offering price of US$18.00 per ADS and Ps. 24.85 per Series B share


MONTERREY, Mexico, Nov. 29

Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., commonly known by its trade name OMA, announced that the initial offering price for its American Depositary Shares (ADSs) has been fixed at US$18.00 per ADS. The offering price of the Series B shares is Ps. 24.85 per share. Each ADS represents eight Series B shares.
Trading will begin today, November 29, 2006. The ADSs are listed on the NASDAQ Global Select Market under the ticker symbol "OMAB," and the Series B shares are listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) under the ticker symbol "OMA."
The initial public offering consists of 167 million OMA Series B shares (in the form of shares or ADSs), constituting an offer size of approximately US$376 million, excluding the over-allotment option. The underwriters have a thirty-day option to purchase an additional 25 million Series B shares (15 percent of the amount being offered) to cover over-allotments. The Series B shares being sold, including those subject to the over-allotment option, represent approximately 48 percent of OMA'stotal equity.
All the Series B shares are currently outstanding and are being sold by the Mexican government, acting through its development bank Nacional Financiera, S.N.C. (NAFIN). The sale is being coordinated by Mexico's Ministry of Communications and Transportation (SCT). Once all the Series B shares and ADSs have been placed, including full exercise of the over-allotment option, the Mexican government will have completed the privatization of OMA that began in 2000.
OMA will not receive any proceeds from the sale of shares or ADSs.
Citigroup Global Markets, Inc. is the manager and bookrunner for the U.S. and international offering. Acciones y Valores Banamex, S.A. de C.V., Casa de Bolsa, Integrante del Grupo Financiero Banamex (ACCIVAL) is the lead underwriter and bookrunner for the Mexican offering.
About OMA
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., or OMA, operates 13 international airports in nine states of central and northern Mexico. OMA's airports serve Monterrey, Mexico's third largest metropolitan area, the tourist destinations of Acapulco, Mazatlan, and Zihuatanejo, and nine other regional centers and border cities. OMA employs over 900 persons in order to offer our passengers and clients airport and commercial services in facilities that comply with all applicable international safety and security standards. OMA's strategic shareholders are ICA, Mexico's largest engineering, procurement, and construction company, and Aeroports de Paris, the second largest European airports operator.
This communication may contain forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current expectations and projections about future events. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "target," or similar expressions. While OMA's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of OMA, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are
not limited to, those discussed in our Registration Statement under the caption "Risk Factors." OMA undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

SOURCE OMA
 
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