General Dynamics Completes Acquisition of Jet Aviation

Saturday, November 8, 2008

Transaction creates worldwide business-jet support network and expands General Dynamics’ Aerospace operations into global flight-support services

General Dynamics (NYSE: GD) on Nov. 07, 2008 completed its acquisition of Zurich, Switzerland-based Jet Aviation for CHF 2.45 billion (approximately $2.18 billion) from Dreamliner Lux S.a.r.l., a company controlled by the Permira Funds. The companies announced the plans for the acquisition in August.

Jet Aviation was founded in Switzerland in 1967 and is one of the world's leading business-aviation services companies. Approximately 5,600 Jet Aviation employees cater to clients' needs from 25 airport facilities throughout Europe, the Middle East, Asia and North and South America. Services provided include maintenance, repair and overhaul; completions and refurbishments; engineering; fixed base operations (FBO); aircraft management, flight support and global executive-jet charter services; and aircraft sales, acquisitions and personnel services. In the past three years, under the control of the Permira Funds, Jet Aviation has developed from a family owned business to a global leader in business aviation services.

Jet Aviation will continue serving the entire aircraft manufacturing community and its global client base as a new business unit within the General Dynamics Aerospace group operating under the Jet Aviation and Midcoast Aviation brands. Current management will remain in place.

“We are very pleased to add Jet Aviation to the industry leading portfolio of business-aviation products and services that currently are provided by the General Dynamics Aerospace group, and to partner with the current management team to continue its success. As a unit of General Dynamics, Jet Aviation positions us to capture additional growth opportunities in the business-aviation market,” said Nicholas D. Chabraja, General Dynamics chairman and chief executive officer.

Jet Aviation and its principal subsidiary companies, Midcoast Aviation (St. Louis, Mo.) and Savannah Air Center (Savannah, Ga.), operate in nine U.S. locations, including Bedford/Boston, Mass.; Chicago, Ill.; Dallas and San Antonio, Texas; Lambert, Mo.; Palm Beach, Fla.; and Teterboro, N.J. The company also operates facilities in Basel, Geneva and Zurich, Switzerland; Beijing and Hong Kong, China; Cologne, Dusseldorf, Hannover and Kassel, Germany; Dubai, UAE; Jeddah and Riyadh, Saudi Arabia; Kuala Lumpur, Malaysia; London Biggin Hill, U.K.; Moscow Vnukovo, Russia; and Singapore. More information about the company is available online at http://www.jetaviation.com.

The General Dynamics Aerospace group designs, develops, manufacturers and services a comprehensive offering of advanced business-jet aircraft, and has a strong reputation for superior aircraft design, safety, quality and reliability; technologically advanced onboard systems; and award-winning product support.

General Dynamics, headquartered in Falls Church, Va., employs approximately 91,200 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.

Source: General Dynamics

Permalink: http://www.sflorg.com/comm_center/aviation/p696_04.html

Time Stamp: 11/8/2008 at 3:22:53 PM UTC

General Dynamics to Acquire Jet Aviation for $2.25 Billion

Tuesday, August 19, 2008

Transaction will create a large, worldwide business-jet support network and expand General Dynamics’ Aerospace operations into global flight-support services; current Jet Aviation management to remain in place.

General Dynamics (NYSE: GD) and Dreamliner Lux S.a.r.l., a company controlled by the Permira Funds, have entered into a definitive agreement for General Dynamics to acquire Zurich, Switzerland-based Jet Aviation for CHF 2.45 billion (approximately $2.25 billion) in cash.

The proposed acquisition, which has been approved by the boards of directors of both companies, would be immediately accretive to General Dynamics’ earnings.  The transaction is subject to normal regulatory approvals, and is expected to close by the end of 2008.

Jet Aviation, with its worldwide headquarters in Zurich, was founded in Switzerland in 1967 and is one of the world's leading business-aviation services companies. Close to 5,600 employees cater to clients' needs from 25 airport facilities throughout Europe, the Middle East, Asia and North and South America. Services provided include maintenance, repair and overhaul; completions and refurbishments; engineering; fixed base operations (FBO); along with aircraft management, flight support and global executive-jet charter services; aircraft sales and acquisitions and personnel services.  In the past three years, under the control of the Permira Funds, Jet Aviation has developed from a family owned business to a global leader in business aviation services.

Following completion of the acquisition, Jet Aviation will continue serving the entire aircraft manufacturing community and its global client base as a new business unit within the General Dynamics Aerospace group operating under the Jet Aviation and Midcoast Aviation brands.

“We are delighted to be acquiring Jet Aviation and partnering with the current management team to continue its success.  Under the Permira Funds’ ownership, Jet Aviation has become a global market leader in business-aviation services; as a unit of General Dynamics, Jet Aviation will support one of our core growth areas,” said Nicholas D. Chabraja, General Dynamics chairman and chief executive officer.

“The Permira Funds backed a period of significant capital investment in this business that drove rapid organic growth, and Jet Aviation strengthened its franchise globally through a successful acquisition strategy.  As a result, the company is well-positioned to capture further growth opportunities in the business aviation market.  Through General Dynamics’ acquisition of this strong and rapidly growing organization, we will expand our participation in the business-aviation industry well beyond that of our current operations,” Chabraja said.

Jet Aviation and its principal subsidiary companies, Midcoast Aviation, St. Louis, Mo., and Savannah Air Center, Savannah, Ga., operate in nine U.S. locations, including Bedford/Boston, Mass.; Chicago, Ill., Dallas and San Antonio, Texas; Lambert, Mo.; Palm Beach, Fla.; and Teterboro, N.J.  The company also operates international facilities in Basel, Geneva and Zurich, Switzerland; Beijing and Hong Kong, China; Cologne, Dusseldorf, Hannover and Kassel, Germany; Dubai, UAE; Jeddah, Saudi Arabia; Kuala Lumpur, Malaysia; London Biggin Hill, U.K.; Moscow Vnukovo, Russia; Riyadh, Saudi Arabia; and Singapore.  More information about the company is available online at http://www.jetaviation.com.

The General Dynamics Aerospace group designs, develops, manufacturers and services a comprehensive offering of advanced business-jet aircraft, and has a strong reputation for superior aircraft design, safety, quality and reliability; technologically advanced onboard systems; and award-winning product support.

General Dynamics, headquartered in Falls Church, Va., employs approximately 84,600 people worldwide and anticipates 2008 revenues of approximately $29.5 billion.  The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.

Source: General Dynamics Areospace

Permalink: http://www.sflorg.com/comm_center/aviation/p497_03.html

Time Stamp: 8/19/2008 at 10:55:38 AM UTC

Unmanned Plane Tracks Marine Mammals From Air

Sunday, February 24, 2008

A remote-controlled plane will be tested for use in counting dugongs and whales in Moreton Bay next month.

Australian researchers are investigating whether Unmanned Aerial Vehicles (UAV) are a better way to count marine mammals than traditional methods such as using boats or manned aircraft.

Migrating humpbacks and dugongs will be captured via a specialized video camera system attached to the three-meter long plane.

The plane costs about $100,000, has a wingspan of five meters, a maximum range of 1500 kilometers and a top speed of 200 kilometers an hour.

Marine mammal survey and tracking experts from UQ, James Cook University (JCU) and The University of Newcastle are working with Jimboomba UAV business, Aerocam Australia on the test flights.

The project's chief investigators are Dr Amanda Hodgson from UQ's Center for Marine Studies and Dr Mike Noad from UQ's School of Veterinary Science.

They want to find out if the drone can replace manned aircraft to reduce costs, human risk, and animal disturbance, and improve animal detection, location and species identification.

Ultimately they hope to improve knowledge of marine mammal abundance and distribution.

Aerocam Australia owner Greg Smith will fly the plane using a combination of automated and manual controls via a laptop computer.

Dr Hodgson said there had been only one documented trial of unmanned aerial counting of various wildlife in the United States including manatees.

Dugongs have been surveyed from the air in Queensland since the 1980s.

There have been no aerial survey deaths in Australia but at least three aircraft crashes, killing eight marine mammal researchers in other parts of the world during aerial surveys of marine mammals.

Dr Hodgson and Dr Noad hope UAVs will reduce costs of aerial surveys and having visual records of sightings increases the accuracy of identification.

Their project proposal says the conservation and management of many marine mammal species depends on monitoring population status by conducting aerial surveys from manned aircraft.

Dr Hodgson said UAV aerial surveys of humpbacks off North Stradbroke Island were due for July this year with dugong surveys in Moreton Bay and Hervey Bay due for October.

The $87,000 project was funded by a Federal Government's Australian Center for Applied Marine Mammal Science grant and in-kind support from JCU and the University of Newcastle.

Source: University of Queensland

Permalink: http://www.sflorg.com/comm_center/aviation/p279_02.html

Time Stamp: 2/24/2008 at 8:53:35 PM CST

Air-traffic expert: Major reforms needed to fix the industry

Tuesday, February 5, 2008

Several recent reports of near misses by commercial airplanes have focused attention on the health of the country's air-traffic control system, but a Purdue University aviation expert says near misses are just one symptom of what's ailing an overburdened industry.

"Anytime you have humans involved in any process, there is a chance of error," said Michael Nolan, a professor of aviation technology and director of Purdue's air-traffic control program. "Ultimately, the real problem is not with the controllers but with the constant battle between capacity of the system and increased demand."

Nolan, a former air-traffic controller who wrote a book on the system's history, says that with the number of passengers growing at about 5 percent a year, near misses, delays and airport congestion will continue until the system is overhauled.

"Air travel in this country is extremely safe, and we haven't had a major fatal crash in several years," he says. "The FAA (Federal Aviation Administration) has been told that safety is first priority, and it is doing its job. But in terms of making changes to the system, what incentive is there?"

Nolan says reform would take new, bold ideas and a monumental and costly effort.

"President Eisenhower was frustrated by the fact that driving across the U.S. was nearly impossible, so he initiated the idea for the interstate system in the 1950s," he says. "It's going to take a similar effort to truly change the problems we have in the airline industry."

Nolan says even in the busiest cities, there is still room in the sky for more airplanes, so reducing the space between planes could be safely done, although navigation and other systems would have to be modified. Current FAA guidelines state that airplanes should be 1,000 feet apart vertically and 3 miles apart horizontally.

"However, the major problem is not so much room in the skies, but crowded hubs," he says.

Nolan says no new airports have been constructed in the last two decades, and new proposals prompt concerns about noise and pollution, not to mention cost.

"Unfortunately, it may take an instigating event, such as a major accident, for someone to look at a permanent solution," Nolan says. "Americans love to fly, and they want to fly on big, commercial jets into major hubs. But we must keep in mind that as the number of flights increases, so does the amount of work for the air-traffic controllers, making accidents more likely. There are solutions, but there is no quick fix."

Source: Purdue University

Permalink: http://www.sflorg.com/comm_center/aviation/p231_01.html

Time Stamp: 2/5/2008 at 1:30:52 PM CST