China Ex-Im Bank is to provide a $190m loan to Sri Lanka for the construction of the island’s second airport. The new airport will be located near a large sea port at Hambantota. China is financing a number of projects within Sri Lanka, competing against its other major financier, India, for dominance within the island since the close of its Civil War. Sri Lanka was handed $1.2bn in funds by China last year and also received $424m from the Asian Development Bank. It is receiving additional investment to finance further infrastructure developments such as rail and road links.

United Airlines has committed to the purchase of 25 A350-900 XWB aircraft with deliveries beginning in 2016 and running through 2019. The twin-engine aircraft will be powered by Rolls-Royce Trent XWB engines. “This is the latest chapter in a very strong relationship that has spanned two decades,” said John Leahy, Airbus COO customers. United received its first Airbus aircraft, an A320, in November 1993. The order book for the A350-900 XWB now stands at 530 aircraft. Final assembly of the first aircraft is anticipated in 2011, with the first delivery (of an A350-900) scheduled for 2013.

Aer Lingus is to end the employment of its cabin manager crew, offering some reemployment under a much lower salary. The airline will terminate the contracts of its Ireland-based cabin managers forcing redundancy on 230 and offering to rehire 75 per cent under new contracts. Cabin crew had previously rejected the airline’s proposal of a €97m cost-cutting structure, which would involve more than 600 voluntary redundancies. The airline is still to offer its voluntary redundancy scheme, which includes a severance package of six weeks for each year of employment, to those accepting its conditions. It will offer the lowest redundancy package to all others. Aer Lingus reported losses of €66.2m ($88m) in 2009.
 

Global airline capacity has risen above the pre-recession figures of 2008, according to aviation intelligence company OAG. The total number of seats available in March has risen five per cent on 2009 figures from 289.8 million to 303.1 million. This year’s figures are also up on 2008 pre-recession results of 299.6 million. "March capacity is rebounding and 2010 exceeds not only that of a year ago, but of the same month in 2008, before the start of the global recession. This growth in worldwide capacity signals increased confidence in travel demand," said Peter von Moltke, CEO, UBM Aviation. Airlines will operate four per cent more flights in March on a year-on-year basis with scheduled flights reaching 2.46 million, according to OAG.

Swiss International Air Lines (Group) recorded a CHF146m profit for 2009 which compares to a CHF472m profit the year before, a drop of CHF326m. Total operating income fell 17 per cent year-on-year. Harry Hohmeister, CEO, said that the company achieved positive figures “despite sizeable declines in our revenues and a tangible migration from higher to lower booking classes” due to adjustments in capacity, particularly to intercontinental destinations. Total actual production was about six per cent below forecasts and four per cent down on the previous year. Europe was down three per cent and intercontinental routes down eight per cent. Swiss also suspended operations of two of its aircraft. The airline flew 13.8 million passengers in 2009, a record number and a 2.4 per cent increase on 2008. Load factor fell marginally from 80.3 per cent to 80.1 cent. ($1= CHF1.1)

Bombardier, the world's third-largest airframer, has announced that due to the current unfavourable conditions in the debt capital markets, it has decided to withdraw its proposed institutional private placement of new senior notes and therefore, it has also terminated its previously announced cash tender offer for its 6.75 per cent notes due 2012, 6.30 per cent notes due 2014 and floating rate senior notes due 2013. UBS has lowered its rating on the company's stock to "neutral" from "buy".
 

Airbus parent company EADS reported that 2009 revenues stood at EUR42.8bn, supported by record commercial aircraft deliveries at Airbus (498 units compared to 483 in 2008). EADS reported a net loss of EUR763m for 2009, down from a profit of EUR1.57bn last year. A EUR1.8bn charge on the delayed and over-budget A400M and EUR240m of provisions for the A380 both weighed on the result, according to the company. Revenue slipped one per cent to EUR42.8bn. In addition, revenues at Astrium (an EADS division) grew by 12 per cent.

Aéroports de Montréal has announced its audited consolidated financial results for the year ended December 31, 2009. EBITDA totalled $151.5m for the year, down $21.6m, or 12.5 per cent, from the previous year. Consolidated revenues were $351.4m in 2009, down $10.8m, or three per cent, from 2008. This difference is the result of the drop in passenger traffic and interest revenue. Operating costs (excluding municipal taxes) for the year under review reached $141.0m, up $17.8 m, or 14.4 per cent, from the previous year. The company said this variance is due mainly to the contribution of the company to the redevelopment of the Dorval interchange, the increase of certain operational costs due to the start-up of the new transborder departures area, and to the increase in payroll and pension costs.

UBS, the financial services firm, has upgraded its rating for Boeing from ‘sell’ to ‘neutral’ and pushed its price target on the stock from $50 to $68. It also increased its delivery forecast for the airframer by nine per cent in 2010, and 28 per cent in 2011. UBS said it noted that a recent survey shows that more airlines are now looking to speed-up deliveries instead of deferring them – the first instance since mid-2008.
 

Triumph Group has acquired Fabritech, a component manufacturer and repair station for critical military rotary-wing platforms. The acquired business, which will operate as Triumph Fabrications-St. Louis and be part of Triumph Aftermarket Services Group, is expected to add approximately $25m of revenue for fiscal year 2011 and will be immediately accretive to earnings.