Short Takes
November 20th 2020
ST Engineering this week announced a new organisational structure that will split the business in two – a commercial unit focused on commercial aerospace, urban solutions and sitcom and a defence and public security unit covering digital systems and cyber, land systems, marine and defence aerospace. Read More » The structure, to operate from January 1, 2021, will replace the previous aerospace, electronics, land systems and marine businesses. "The time is right for us to create a sharper and more agile organisation that will be highly attuned and responsive to our customers’ needs in the new world," ST Engineering CEO, Vincent Chong, said.
Melbourne Airport said this week vaccine company, Squirus, planned to build an 118,000 square metre purpose-built facility at its business park, with construction expected to commence in February 2021, take three years to complete and another two years for commissioning. Melbourne Airport CEO, Lyell Strambi, said the airport was working to shift its focus away from traditional aviation-related revenue streams. “We are firmly focused on expanding and diversifying our property precincts and look forward to partnering with many more quality tenants as we continue to grow the airport,” Strambi said in a statement.
Australia's Alliance Aviation Services said this week it had agreed to purchase MRO provider, Toll Aviation Engineering, described as a "fit for purpose for Embraer E190 maintenance" facility. The Toll hangar is located alongside Alliance's workshop at Brisbane Airport. Alliance managing director, Scott McMillan, said the deal, expected to be completed by the end of this month, would allow the company to have a "much smoother integration of the Embraer E190s into revenue generating services in the short term and for a more efficient and financially sustainable line maintenance program in future years". Alliance recently purchased 14 E190s.
Still in Australia, Regional Express (Rex) said this week it would raise A$150 million with the sale of secured convertible notes to Asia-Pacific investment firm, PAG Regulus Holdings Pte Ltd (PAG). The funding would support the start of domestic jet operations next year, with an initial A$50 million to be drawn down in January 2021, Rex said in regulatory filing to the Australian Securities Exchange (ASX). "Upon completion, PAG will be entitled to nominate two directors to the Rex board," Rex said. The airline planned to have three 737-800s operating Melbourne-Sydney from March 1, 2021, increasing to five aircraft and more routes by April.
Japan’s ZIPAIR has confirmed its third route, Tokyo Narita to Honolulu, will commence on December 19 with a launch schedule to run until January 31 next year. The carrier’s two operating routes are Narita-Seoul and Narita-Bangkok. The Honolulu service will be flown by 787-8s configured with 18 full flat seats and 272 economy seats.
