Theresa May is to promise extra investment for the aerospace industry, just days after Airbus threatened to reduce its UK presence because of Brexit disruption. The prime minister will also say that her Brexit plan will secure millions of aviation jobs in Britain.
There will be additional money for two new spaceports – one in Cornwall, one in Scotland – and a long awaited commitment to build a new high-tech fighter aircraft that will eventually replace the Eurofighter Typhoon. The UK aviation sector generates turnover of about £60bn and supports almost a million jobs. British aerospace exports alone were worth £30bn in 2017.
Boeing sealed a deal for a controlling stake in the commercial aircraft arm of Brazilian plane maker Embraer under a new $4.75bn joint venture, reshaping a global passenger jet duopoly.
Boeing and Embraer announced they have signed a Memorandum of Understanding to establish a strategic partnership that positions Doth companies to accelerate growth in global aerospace markets. The non-binding agreement proposes the formation of a joint venture comprising commercial aircraft and services business of Embraer that would strategically align with Boeing’s commercial development, production, marketing and lifecycle services operations.
Under the terms of the agreement, Boeing will hold an 80% ownership stake in the joint venture and Embraer will own the remaining 20% stake. The transaction values 100% of Embraer’s commercial aircraft operations at $4.75bn and contemplates a value of $3.8bn for Boeing’s 80% ownership stake in the joint venture.
The proposed partnership is expected to be accretive to Boeing’s earnings per share beginning in the generate estimated annual pre-tax cost synergies of approximately $150m by year three.
The strategic partnership will bring together more than 150 years of combined leadership in aerospace and leverage the two companies’ highly complementary commercial product lines. The partnership is a natural evolution of a long-standing history of collaboration between Boeing and Embraer over more than 20 years.
On finalization, the commercial aviation joint venture will be led by Brazil-based management, including a president and chief executive officer. Boeing will have operational and management control of the new company, which will report directly to Muilenburg
The revenues of companies in the aerospace industry are growing, but companies in the supply chain aren’t benefitting from the OEM revenue boost in the same way. Andy Page, the CEO of Sharing in Growth (SiG), explains how SiG helps aerospace suppliers to tackle his problem.
Data published by the Office for National statistics (ONS) has shown over the years that he revenues of companies in the aerospace industry have been growing, mainly because large companies like Rolls-Royce, Airbus and GKN are dominating the industry.
These OEMs control a considerable share of the global aerospace market.
However, despite the growing revenues of these OEMs, the valuable work being undertaken in the UK’s aerospace supply chain has remained relatively flat over the years, at least this is what Andy Page, SiG’s CEO, says. A reduction of that share is symptomatic of the fact that a large part of the work in the supply chain is not sticking to the UK.
Since its launch in 2013, the programme has secured over £2.5bn in contracts and 22 thousand man-hours of work for some 60 UK suppliers by driving improvements in operational competitiveness, leadership behaviours, and business strategy.
The views in this response draw on the experience of working intimately with their leadership teams and their 11,000 employees across the UK. Page said that Sharing in Growth is well ahead of its commitments to the Department for Business, Energy & Industrial Strategy (BEIS) and is also ahead of the commitments made by beneficiaries in their investment proposals.
Throughout the programme, all beneficiaries submit data to enable progress to be monitored and to provide a snapshot of the overall health of the participants. Sharing in Growth UK Ltd was set up by the industry as a non-profit organisation with industry sponsorship and public funding support.
To deliver the current programme, sharing in Growth has assembled a group often world-class delivery partners and a team of 120 full-time professionals covering the critical business topics that SiG trains and coaches.
This resource pool enables SiG to deliver business improvement programmes tailored to individual company needs – with significant cost benefits being realised through long-term agreements with delivery partners and economies of scale.
Largest ever expansion at Manchester Airport. The airline is adding five new aircraft and creating 175 jobs at the airport. The move means that EasyJet will be adding five new routes and will carry an extra 1.5m passengers a year.
The five new destinations are Innsbruck, Lanzarote, Faro, Barcelona and Bordeaux the 1,000th for the airline. Tickets for the flights have already gone on sale and the new routes will start in November. EasyJet flew over 3.5 million passengers from Manchester last year alone, having flown over 10m since the airline started operations in the North West in 2008.
It will now have 17 aircraft at the airport and will carry five million passengers a year. The expansion represents a 40% increase in growth.