Air Capital Insider » suppliers

First Cessna Citation X with winglets delivered

Molly McMillin — Mon, 31 Aug 2009 16:45:54 +0000

The first Citation X to be fitted with elliptical winglets has been delivered. The winglets were designed by Wichita-based Winglet Technology in collaboration with Cessna.

The patented shape increases lift and reduces drag on the aircraft, which decreases fuel consumption and increases the plane’s speed and range, Cessna said.

Plans are underway to offer the winglet to be installed on Citation Xs at Cessna’s nine service centers in the U.S. and Europe. Cessna Parts Distribution will provide spares support for the installed winglet.

Resources key to Boeing 787 supplier success

Molly McMillin — Wed, 08 Jul 2009 16:28:10 +0000

There’s a big difference between the Vought facility in South Carolina that Boeing is acquiring and Boeing supplier Spirit AeroSystems: resources.

Both plants make key components on Boeing’s new 787.

“The problem at Vought wasn’t lack of experience,” said Teal Group analyst Richard Aboulafia. “They’ve been building major parts of Boeing jets since the late ’60s. The problem was resources.”

Vought had been forgotten by their owners and had minimal resources at their disposal, Aboulafia said.

In contrast, successful partners on the program such as Spirit had the needed financial backing to execute on the work and win new contracts, he said.

“When you trust people to do major design work, you better make sure they have the resources, and Vought didn’t,” Aboulafia said.

In contrast, Onex moved quickly to make Spirit a stand-alone company and push forward with an initial public offering, he said.

“It was all designed that they had the adequate capital base,” Aboulafia said.

Boeing to buy Vought’s 787 operations, report says

Molly McMillin — Wed, 01 Jul 2009 16:29:41 +0000

Boeing is planning to announce its intent to buy the 787 operations run by Vought Aircraft Industries in North Charleston, S.C. from the Carlyle Group, according to a report by FlightBlogger’s Jon Ostrower, which cites unnamed sources.

In the last two years, Boeing has worked to gain control over its supply chain for the troubled 787 program. The purchase may set the stage for a second final assembly line for the new 787.

Once an announcement is made, there will be a week-long transition to shift operational control of the facility to Boeing, the report said.

The transition will draw on the lessons learned after Boeing sold off its Wichita commercial operations to Onex Corp. in 2005, forming Spirit AeroSystems. Spirit is a key supplier to Boeing on the 787 program.

LMI Aerospace posts first quarter higher sales, lower net income

Molly McMillin — Fri, 08 May 2009 16:07:36 +0000

LMI Aerospace, parent company to Leonard’s Metals in Wichita, recorded net sales in the first three months of the year of $64 million, versus $60.4 million for the same time a year ago.

Net income, meanwhile, declined to $3.4 million in the quarter, or 30 cents per diluted share, from $4.5 million a year ago.

Earnings were affected by expenses related to the purchase of Intec, closing its TCA subsidiary and severance and restructuring charges related to work force reductions, the company said.

In addition, the company was affected by reduced demand for large cabin Gulfstream aircraft because of production rate cuts announced in March, and by inventory reductions related to the action.

The company continues to receive orders for components and subassemblies for the Boeing 747-8 freighter, and it’s beginning to receive orders for the passenger model. It also is expecting demand for Blackhawk products.

“The market environment is still challenging and we are working to cover anticipated future production rate cuts in 2010 with new program awards,” said LMI Aerospace president and CEO Ronald Saks in a statement.