Airline president Tim Clark says the engine problem involved a “higher intervention rate” in maintaining the Rolls engines due to unanticipated levels of wear to fan blades stemming from their deployment in Dubai’s desert climate.
Emirates is due to take receipt of 50 of the planes equipped with Rolls-Royce engines after switching from the competing GP7000 turbine manufactured by an alliance of GE and Pratt & Whitney, which powered its first 90 aircraft.
Thales Alenia Space, a joint venture between Thales (OTC:THLEY) and Leonardo-Finmeccanica (OTCPK:FINMY), announces the signing of a new contract with Orbital ATK (OA +0.2%) to produce additional hardware for upcoming cargo resupply missions to the International Space Station.
Orbital is scheduled to complete 10 CRS-1 missions to the ISS before transitioning to launch cargo logistics missions under the CRS-2 contract in 2019.
Raytheon (RTN +0.8%) says it will team up with Italian aircraft maker Finmeccanica (OTCPK:FINMF) to compete for a contract to build hundreds of new training jets for the U.S. Air Force.
The Air Force is expected to award a deal next year to build an initial 350 planes to replace aging T-38 training jets, and analysts expect international sales could expand the potential value of the T-X program to ~$15B.
At least four U.S. defense companies are expected to submit bids, with only Northrop Grumman (NOC +0.8%) pushing a homegrown model; RTN, Boeing (BA +2.2%) and Lockheed Martin (LMT +0.8%) will present foreign-designed aircraft.
The United Arab Emirates' Ministry of Defense has signed a memorandum of understanding with Anglo-Italian helicopter firm AgustaWestland to buy three AW609 tilt-rotor aircraft for search and rescue operations.
AgustaWestland, a wholly owned subsidiary of Finmeccanica (OTCPK:FINMY), said it expected delivery of the planes to start in 2019, including options for three more aircraft.
Era says it has amended existing contracts allowing it to defer deliveries of helicopters used to transfer workers and cargo to and from offshore platforms, delay deposits or even cancel deals altogether.
Era says it may terminate deals worth ~$127M of its existing $175M in capital commitments; the company has outstanding orders for 17 helicopters, including 14 from Finmeccanica (OTCPK:FINMF) and three from Sikorsky, the United Technologies unit that soon will join Lockheed Martin after closing a $9B sale.
Fresh off its political victory, Canada's incoming Liberal government will totally restart a competition for fighter jets, as incoming Prime Minister Justin Trudeau had suggested.
The country is looking to replace its aging CF-18 aircraft, and the outgoing Conservatives had proposed buying Lockheed Martin's (NYSE:LMT) F-35 stealth fighters. But a Liberal source says the party will put out a new request for proposals with a new set of requirements for the craft when it takes power Nov. 4.
The competition will be fresh, the source suggested, rather than simply going with another choice like Boeing's (NYSE:BA) F/A-18E/F jets. Those jets are expected to end production by 2019 if not earlier, and Canada's reset could mean that choosing the CF-18's replacement could take years.
Marking the end of a hard-fought competition, Germany has decided to buy the MEADS missile defense system built by European defense group MDBA and Lockheed Martin (NYSE:LMT), instead of the Patriot system built by Raytheon (NYSE:RTN).
The deal that could be worth up to $4.5B to the companies involved.
Further expanding its transportation business overseas, Hitachi (OTCPK:HTHIY -1.7%) has agreed to pay $1B for two units from Finmeccanica (OTCPK:FINMY -2.7%), which is looking to concentrate on its core aerospace and defense businesses.
Hitachi will pay €773M ($876.1M) for Finmeccanica’s 40% stake in rail signaling operator Ansaldo and €36M for its unprofitable train manufacturer AnsaldoBreda.
Following the closing of the deal, Hitachi will launch a mandatory tender offer on Ansaldo’s publicly traded shares, potentially boosting its total payout to as much as $2.5B.