Aerospace & Aviation

Avolon has announced a firm order for 110 Airbus jets, comprising 75 A320neo family aircraft and 35 A330-900s, with options for a further 100 aircraft pending Bohai Leasing shareholder approval. The commitment from the leading lessor reinforces long-term demand visibility for Airbus's single-aisle and widebody programmes and deepens its presence in the leasing market. The order, once Bohai Leasing approves it, supports the long-term demand story but does not materially change the most immediate swing factors, which remain engine and supply chain reliability on the A320 family and the impact of elevated investment and Spirit AeroSystems integration costs on near-term free cash flow. Alongside the Avolon deal, Airbus Defence and Space has completed the first 32 new OneWeb satellites for Eutelsat, underlining the push to build a more meaningful second profit pillar outside commercial jets. Airbus's narrative projects 107.5 billion euros in revenue and 9.3 billion euros in earnings by 2029, requiring 11.8% yearly revenue growth and about a 3.4 billion euro earnings increase from 5.9 billion euros today, while some of the most optimistic analysts were already pencilling in about 122.6 billion euros of revenue and 10.4 billion euros of earnings by 2029.

Southwest Airlines is leaning toward Boeing's 787 Dreamliner as its first widebody jet as it weighs launching long-haul international flights, Reuters reported, citing people familiar with the carrier's fleet planning. No final aircraft decision has been made, the report added, and the choice would ultimately rest with Southwest's board, which last year formed a Fleet Oversight Committee to help oversee the company's aircraft fleet acquisition strategy. Southwest has not publicly named an aircraft for long-haul flying; in September, CFO Tom Doxey said long-haul international service was among a range of options under consideration but that no decision had been made. According to the report, Southwest has contemplated a fleet of dozens of 787s and has also examined how quickly it could obtain aircraft, including through lessors or the secondary market, though it was not clear which 787 variant it is considering or whether any leasing arrangements have been made. Southwest did not directly address questions about the 787, saying in a statement, "We do not have any news forthcoming related to our fleet plans," the report added.

Bohai Leasing disclosed two major commercial orders on the evening of October 9. Its controlling subsidiary Avolon, through Avolon Aerospace Leasing Limited, plans to purchase multiple aircraft from both Boeing and Airbus, with total order value not exceeding RMB 424.58 billion. Among them, AALL plans to purchase 140 B737 MAX series aircraft from Boeing, with a total value not exceeding USD 26.953 billion based on Boeing's published list prices, and Boeing will complete deliveries gradually by the end of 2036. On the same day, AALL, CIT Aerospace LLC, and CIT Aerospace International Unlimited Company signed an agreement with Airbus to purchase 110 new-generation technology aircraft, including 75 A320NEO series and 35 A330NEO series aircraft, while also obtaining purchase options for 100 additional new-generation technology aircraft. If all purchase options are exercised, the total value of Airbus-related orders will not exceed USD 36.491 billion, with deliveries expected to be completed gradually by the end of 2035. Based on the latest exchange rate of USD 1 to RMB 6.6922, the total value of the above orders does not exceed RMB 424.58 billion. The funds for this purchase come from Avolon's own funds, self-raised funds, and future operating cash flow. As of the end of the second quarter of 2026, Avolon's total available liquidity was approximately USD 12 billion. Bohai Leasing stated that this transaction is conducive to enhancing the company's aircraft order backlog, bargaining power, and competitiveness in the global aircraft leasing market. As of the end of the third quarter of 2026, Avolon's fleet size was 1,092 aircraft, including 561 owned aircraft, 32 managed aircraft, and 499 aircraft on order, excluding the quantity from this order.

Starfighters Space, Inc. has completed the first flight hardware for its reusable airborne testing platform, Wind Tunnel in the Sky, under a production agreement with Italian engineering company Robby Moto Engineering S.R.L. The precision-manufactured components are now en route to the company's base at NASA's Kennedy Space Center, where they will be assembled into two modular underwing flight articles measuring 3.65 meters long and 178 millimeters in diameter. The flight articles are based on a proven military air-launch vehicle form factor compatible with existing F-104 underwing pylons, with interchangeable nose sections, tail assemblies, fin configurations and payload compartments for rapid adaptation to different customer missions. Following assembly in Florida, the hardware will undergo ground handling and processing workflows, aircraft integration tests and captive-carry flight evaluations before supporting customer missions, and it also supports future STARLAUNCH missions. Starfighters Space operates the world's only commercial fleet of flight-ready Mach 2+ supersonic aircraft, at Kennedy Space Center and the Midland International Air & Space Port in Texas.

FTAI Aviation Ltd. announced a multi-year Maintenance, Repair and Exchange agreement with United Airlines under which FTAI provides engine exchanges in lieu of traditional shop visits. The relationship began with United's V2500-powered fleet and has now been extended to designated CFM56-7B engines, with the program structured to grow over its term. Under the program, FTAI delivers a serviceable engine ahead of each of United's scheduled removals and then purchases United's unserviceable engine in exchange, sparing the airline the cost and downtime of a traditional shop visit, while FTAI adds each acquired engine to its inventory as feedstock for its MRO network. The program started with an initial group of engines in 2026 and will continue to expand as additional engines come due for removal, with the two companies jointly planning deliveries against United's removal schedule. FTAI Chairman and CEO Joe Adams called United's adoption of the program a meaningful endorsement, and United Executive Vice President and Chief Financial Officer Mike Leskinen said the growing relationship will help improve utilization for the Boeing 737 NG aircraft that make up an important part of its fleet.

Boeing has secured an undefinitized contract worth about US$14.7b from Lockheed Martin to scale PAC-3 Missile Segment Enhancement seeker production over a seven year period. The award comes as Boeing shares closed at US$188.32, with a 90 day share price return down 15.59%, a year to date share price return down 17.32%, and a one year total shareholder return down 16.42%. On the operating side, Commercial Airplanes narrowed its operating margin from negative 5.1% to negative 2.7% on 171 deliveries against 150, while the 737 is transitioning to 47 per month from 38 a year ago, with a fourth Everett line activated in July and management targeting 52 next year. A Simply Wall St narrative pegs Boeing's fair value at $160.01, implying the stock is 17.7% overvalued, while the firm's discounted cash flow model points to a future cash flow value of $376.49.

Hangyu Technology announced that the company plans to invest in a research, development, and production capacity improvement project for aero-engine and gas turbine ring forgings at the Shawen Ecological Technology Industrial Park in Guiyang National High-tech Zone, with a total investment of approximately 600 million yuan, including 545 million yuan in fixed asset investment and 55 million yuan in working capital. The project construction period is 60 months, with construction expected to start in June 2027 and formal production to begin in June 2032. Funding will come from the company's own funds and self-raised funds. The company stated that this investment aims to enhance independent research and development capabilities, expand business scale, and increase market share. The announcement also cautioned that the project implementation still requires preliminary procedures such as land acquisition, project approval, and environmental impact assessment, and there are risks of delay, change, or termination.

Woodward has been selected to provide the actuation system for Airbus' ground-based Folding Wing research demonstrator. The company will supply a complete wing actuation system, including a power delivery unit, a high-power hinge actuator, and several additional components, to be tested at Airbus facilities in Bremen, Germany, and Bristol, U.K. The scope also covers support for trade studies with Airbus on design elements such as hydraulic or electric power for the system. Jon Geisheimer, Vice President and General Manager of Electromechanical Systems and Electronics at Woodward, said the company's hydraulic and electromechanical capabilities give customers options as they develop the best solution for the application. Airbus' demonstrator explores technology that would let wings fold and lock during taxi to fit existing airport gate infrastructure, requiring a larger folding portion of the wing than current aircraft use.

Textron Aviation Inc., a Textron Inc. company, announced that the Paraguayan Air Force has become the first South American military operator of the Cessna SkyCourier turboprop, marking another milestone for the aircraft's multi-mission versatility. The aircraft, funded by Itaipu Binacional, a binational entity operated by the governments of Brazil and Paraguay, joins the force's existing fleet of Cessna Grand Caravan aircraft. Bob Gibbs, vice president of Defense & Special Mission Sales at Textron Aviation, said the SkyCourier delivers unmatched reliability and mission flexibility, enabling the Paraguayan Air Force to reach remote regions with confidence. The high-wing, twin-engine turboprop is designed for cost-effective maintenance and can be flown by a single pilot, enhancing the Air Force's capability to perform medical evacuations, transport patients and provide rapid humanitarian aid during disaster relief efforts. The SkyCourier is powered by two Pratt & Whitney Canada PT6A-65SC turboprop engines and features a maximum cruise speed of more than 200 KTAS and a 900 nautical-mile maximum range.

Thai Airways has signed a 50-year lease for 210 rai of land with the Eastern Economic Corridor Policy Committee, or EECO, to carry out the U-Tapao aircraft maintenance, repair and overhaul project, known as MRO. The contract begins on 1 October 2026, after the signing was postponed from the original date of 4 August 2026 because the Thai Airways board still had concerns about delays in the U-Tapao airport and Eastern Aviation City development project. EECO Secretary-General Chula Sukmanop confirmed there is no problem, as the site can still connect to U-Tapao's current runway. The MRO project on the 210 rai site carries an investment value of about 10 billion baht, with Thai Airways as the main investor. It is expected to take 3 to 4 years for design, construction and negotiations with partners before opening for service in 2030. The government will receive returns in two parts: land rent at a fixed rate adjusted according to the Comptroller General's Department rate, and a tiered revenue-sharing arrangement, with 3% in years 5 to 10, 5% in years 11 to 15, and 7% from year 15 onward. Thai Airways has also set up subsidiaries, Thai MRO Group Company Limited and Thai MRO Services Company Limited, each with registered capital of 1 million baht and 100% ownership, to support this project.

TRU Simulation + Training Inc., a Textron Inc. company and an affiliate of Textron Aviation, announced that its Veris Virtual Reality Flight Training Device configured for the Cessna Skyhawk is making its show debut at the 2026 National Business Aviation Association Business Aviation Convention & Exhibition in Las Vegas. The debut builds on momentum from NBAA-BACE 2025, where TRU Simulation announced a purchase agreement with US Aviation Academy for five Cessna Skyhawk Veris devices, with options for additional units. Attendees can experience the device first-hand through live demonstrations at booth #3415. The dual-seat device combines immersive virtual reality with advanced Full Flight Simulator features, replicates Cessna Skyhawk instrumentation and controls, and incorporates authentic Garmin G1000 NXi avionics, allowing training with or without the virtual reality headset and from either the left or right seat. Designed to meet Federal Aviation Administration Level 7 Flight Training Device standards, the Cessna Skyhawk Veris will expand TRU Simulation's Veris product line into the fixed-wing training market upon qualification.

GE Aerospace is leaning on its Commercial Engines & Services segment as its key growth driver, with second-quarter 2026 segment revenues up 27% and orders up 18% year over year as engine deliveries rose 26%. In the first half of 2026, the company booked GEnx orders from United Airlines and Delta Air Lines for Boeing 787 Dreamliners, LEAP orders from American Airlines and Copa Airlines, an order from Copa Airlines for up to 120 LEAP-1B engines for its Boeing 737 MAX fleet, and a long-term materials agreement supporting Ryanair's fleet of approximately 2,000 CFM56 and LEAP engines. During 2025, GE Aerospace secured more than 500 engine wins at the Dubai Airshow, including flydubai GEnx deals and Riyadh Air LEAP-1A orders, plus a Cathay Pacific order for GE9X engines on its Boeing 777 9 aircraft and a Qatar Airways deal for more than 400 GE9X and GEnx engines that stands as the largest widebody engine deal in the company's history. The company is also advancing its FLIGHT DECK lean model, with supplier improvements supporting revenue growth. Among peers, RTX reported 16% organic sales growth in the second quarter, while Howmet Aerospace's commercial aerospace revenues rose 28% year over year in the second quarter of 2026, constituting 53% of its business.

The Federal Aviation Administration has determined that a newly identified software glitch in the Boeing 737 MAX does not present a flight-safety concern, according to The Wall Street Journal. The agency convened its Corrective Action Review Board on Friday to assess whether the issue constituted an unsafe condition requiring immediate action. The FAA said the board reached its determination because pilots retain full control of the aircraft and the indications to the flight crew are clear and unambiguous, adding that it will consider appropriate action if new information emerges. The software problem had raised concerns among some aviation industry officials about potential safety implications when 737 MAX aircraft are landing under certain circumstances. Boeing shares traded 1.5% higher following the report.

Parker-Hannifin is riding strong momentum in its Aerospace Systems segment, where organic sales jumped 13.3% year over year in the fourth quarter of fiscal 2026 and orders rose 18% year over year, with management guiding fiscal 2027 organic sales growth of 7-10%. The company's Diversified Industrial segment also grew, with fourth-quarter organic sales up 4.9% in North America and 6.5% internationally, including 15.9% growth in Asia Pacific, and fiscal 2027 organic sales are projected to rise 5-8% in North America and 4-7% internationally. In August 2026, Parker-Hannifin acquired Filtration Group Corporation, a deal expected to contribute about $1.8 billion to sales in fiscal 2027 over the first 10.5 months after closing, while its May 2026 agreement to buy CIRCOR International's Commercial and Defense Aerospace business for $2.55 billion remains pending. Acquisitions added 1.2% to sales growth in fiscal 2026, but rising costs and debt weigh on results: cost of sales and SG&A rose 6.9% and 6.5% respectively in fiscal 2026, and management expects roughly $90 million in business realignment charges, $25 million in integration costs and $580 million in acquired intangible asset amortization in fiscal 2027, alongside long-term debt of $6.77 billion and $401 million in interest expense for fiscal 2026.

Boeing has been awarded the U.S. Navy's F/A-XX sixth-generation fighter contract, a multi billion dollar program. The F/A-XX is planned to replace the Navy's current F/A-18 Super Hornet fleet and extend carrier air wing reach. The award follows Boeing's earlier win on the U.S. Air Force's F-47 next generation fighter, consolidating its role in future combat aircraft. The win strengthens the part of the Boeing thesis that leans on advanced technology and a diversified backlog across commercial jets and defense, helping offset some reliance on the loss making commercial division by anchoring long duration military work alongside programs like the F-47 and P 8A. The award also magnifies concerns analysts already highlight around execution risk, supply chain complexity and high debt, since another classified, multi billion dollar fighter program increases capital and delivery commitments.

Prime Minister and Interior Minister Anutin Charnvirakul held talks with Wouter van Wersch, Executive Vice President for International Affairs at Airbus, and Bert Porteman, a representative of Airbus Thailand, on ways to upgrade and expand cooperation between Thailand and Airbus in the aviation industry, space technology, human resource development, and clean energy. The Prime Minister affirmed the policy of promoting the aviation industry and future industries, and asked Airbus to consider broadening cooperation to cover more areas by building on the cooperation models the company has with other countries and extending them to Thailand. On clean energy, the Prime Minister proposed that Airbus promote the use of sustainable aviation fuel, or SAF, produced in Thailand, using Thai raw materials and agricultural output as part of the production chain. In addition, Airbus plans to establish a Center of Excellence in Thailand as a hub for developing knowledge, technology, and personnel, linking Airbus's global network to Thailand. The Prime Minister also proposed expanding cooperation in space technology and security, building on existing cooperation with the Geo-Informatics and Space Technology Development Agency, or GISTDA, and Thaicom Public Company Limited, as well as discussing cooperation with Thai Airways International Public Company Limited to support the goal of pushing Thailand to become the region's aviation hub.

Boeing shares rose about 4% Thursday after the company's largest white-collar union approved a new four-year contract, removing the threat of a strike that could have disrupted production and certification work at the aircraft maker. The Society of Professional Engineering Employees in Aerospace, which represents roughly 17,000 Boeing engineers, scientists, technicians and other workers, said both of its bargaining units voted to ratify the improved offer. About 68% of members in the professional unit, representing roughly 13,000 engineers and scientists, backed the agreement, while more than 53% of the technical unit, which represents about 4,000 designers, analysts and technicians, also voted in favor. The new contract provides a 10% wage increase upon ratification, followed by annual raises of 4% and the potential for an additional 2% performance-based increase. The agreement removes the immediate prospect of a strike after Boeing workers had rejected the company's initial proposal, with the current contracts set to expire October 6 and a work stoppage potentially beginning as soon as October 7. A strike could have added another complication for Boeing as it works to advance certification of its long-delayed 737 MAX 10 and 777X aircraft while increasing production and accelerating deliveries.

RBC Bearings is seeing persistent strength in its aerospace and defense markets, with revenues from the segment surging 36.9% in the first quarter of fiscal 2027 to $225.4 million, following year-over-year growth of 32.9% in fiscal 2026. Within the segment, commercial aerospace revenues rose 21.8% while defense market revenues climbed 64.6% in the fiscal first quarter, helped by missile and space applications orders and the July 2025 VACCO Industries buyout. The company ended the fiscal first quarter with a backlog of $2.3 billion, which it expects to act as a tailwind for the segment. RBC anticipates net sales of $505-$515 million for second-quarter fiscal 2027, a year-over-year increase of 10.9-13.1%, driven by strength across both its Aerospace & Defense and Industrial segments. Among peers, Howmet Aerospace saw defense aerospace revenues rise 11% year over year in the second quarter, constituting 15% of company revenues, while GE Aerospace's Defense & Propulsion Technologies segment revenues increased 16% year over year to $3.4 billion in second-quarter 2026.

GE Aerospace holds a Zacks Rank #2 (Buy), with consensus earnings estimates for the current quarter, fiscal year, and next fiscal year all revised higher over the past 30 days. The company is expected to post earnings of $2.01 per share for the current quarter, a year-over-year change of +21.1%, while the Zacks Consensus Estimate has moved +0.7% over the last 30 days. For the current fiscal year, the consensus estimate of $7.91 points to a +24.2% change from the prior year and has risen +0.6% over the past month, and for the next fiscal year the $9.04 estimate indicates a +14.3% change and has increased +0.5%. Revenue forecasts call for $12.66 billion in the current quarter, up +12% year over year, with current and next fiscal year estimates of $50.56 billion and $55.85 billion, indicating +19.5% and +10.5% changes respectively. In its last reported quarter, GE posted revenues of $12.63 billion, up +24.5% year over year and a +6.52% surprise versus the Zacks Consensus Estimate of $11.86 billion, with EPS of $2.02 versus $1.66 a year ago and an EPS surprise of +8.6%.

Fort Corporation Public Company Limited, or FORTH, announced that its board of directors meeting on 30 September 2026 approved a proposal to be submitted to the first extraordinary general meeting of shareholders of 2026 to consider and approve an increase in registered capital of not more than 13,565,891.50 baht, from existing registered capital of 467,687,350 baht to new registered capital of 481,253,241.50 baht, through the issuance of not more than 27,131,783 new ordinary shares with a par value of 0.50 baht per share, offered to existing shareholders in proportion to their holdings at a price of 12.90 to 16.80 baht per share, at a ratio of 34.4752 existing shares to 1 new share. The final offering price will be determined at least 2 business days before the date on which purchasers of the securities are no longer entitled to subscribe for the new shares. The company expects to receive proceeds of approximately 350.00 to 455.81 million baht from this share issuance and offering, and plans to use the funds to support investment and business expansion under its commercial aircraft repair centre project, or MRO, by 2028. The first extraordinary general meeting of shareholders of 2026 is scheduled for 11 November 2026 at 2:00 p.m. on the 7th floor of the company's office building, and the record date for shareholders entitled to attend the meeting is set for 14 October 2026.

US President Donald Trump praised the Boeing 737 Max after the aircraft model was involved in an attempted downing of a Flydubai plane bound for Israel's Tel Aviv. Trump said the 737 Max is strong and can withstand more stress on the airframe than it was designed for. However, Trump did not directly address the Flydubai flight incident, instead praising Boeing and Kelly Ortberg, Boeing's chief executive officer. Israeli officials said on Wednesday, September 30, that passengers and crew aboard the aircraft were able to thwart an attempt by the co-pilot to bring the plane down in an incident that occurred on Tuesday, September 29. During the incident, the plane plunged nearly 14,000 feet in less than 30 seconds before passengers and crew were able to regain control of the aircraft and land it safely in Tabuk, in northwestern Saudi Arabia.

Boeing and Ethiopian Airlines announced that the African carrier has ordered eight 777-8 Freighters and two 777 Freighters, making Ethiopian Airlines the first African carrier to purchase the world's newest widebody freighter. The order is Ethiopian Airlines' second for the 777X airplane family, building on its earlier purchase of eight 777-9 passenger jets that established the carrier as Africa's first 777X customer, and it doubles the airline's 777X family order book. The 777-8 Freighter will be the world's largest and most capable twin-engine freighter, with a maximum structural payload of 118 tonnes, and will be paired with the 777 Freighter to expand the carrier's Boeing freighter fleet. Ethiopian Airlines Group CEO Mesfin Tasew said the aircraft will enhance payload capacity, operational flexibility, efficiency and sustainability as cargo demand grows, while Boeing senior vice president of Commercial Sales and Marketing Brad McMullen cited the strength of the partnership and growing worldwide air cargo demand. Ethiopian Airlines currently connects more than 70 cargo markets across Africa, Asia, Europe, the Middle East and North America with a fleet of 12 777 Freighters, two 767 Freighters and four 737-800SF airplanes.

Citi added Howmet Aerospace to a positive 90-day Catalyst Watch on Wednesday, maintaining its Buy rating and $329 price target on the aerospace supplier. The call implies 42.5% expected share-price appreciation, or a 42.7% total return including dividends, from Howmet's Sept. 29 closing price of $230.94. Lead analyst John Godyn said recent concerns weighing on the shares appear overdone and described Howmet as one of Citi's top aerospace and defense compounders. Howmet shares have fallen about 9% since Citi initiated a separate positive 30-day Catalyst Watch on Aug. 31, which has now expired, with Citi attributing the weakness to GE Aerospace's acquisition of Consolidated Precision Products, potential risks to Boeing's 737 production and delivery schedule, and rising geopolitical and fuel-related pressures on aerospace and defense stocks. Citi forecasts third-quarter EPS of $1.38 and fourth-quarter EPS of $1.44, bringing estimated 2026 EPS to $5.37, and its 2027 EPS estimate of $6.76 is above the $6.48 consensus cited in the report.

JPMorgan said in a note Wednesday that European defense investors are favoring companies with long-duration order books and hard-to-replace products, while marking down those whose technology could be displaced. The European defense sector has underperformed local markets by about 6% this year on average, though with wide variation between individual stocks, analyst David Perry noted. JPMorgan rates BAE Systems, Leonardo and Babcock Overweight, saying all three have those defensive characteristics, while investors have significantly de-rated companies such as Rheinmetall, CSG and Renk on fears their technology could be displaced. JPMorgan placed MTU Aero Engines and Leonardo on Positive Catalyst Watch, ahead of MTU's capital markets day on Nov. 30 and Leonardo's industrial plan update in March 2027, and put Rheinmetall on Negative Catalyst Watch, saying it does not expect the company to cut its 2030 sales goal of 50 billion euros even though the bank's own forecast is 36.9 billion euros. Perry said the debate over technology displacement is complex and the answer will not be clear for many years, making investor events at Rheinmetall on Nov. 27 and Renk on Dec. 8 important, and added that Rolls-Royce and Safran should remain strong performers over the medium term and are core holdings.

GE Aerospace and Kratos Defense successfully ignited the GEK800 turbofan cruise missile engine, a fresh data point for investors watching General Electric's defense story. The news lands against a mixed stretch for the share price: a 30 day share price return of 7.21% and a 90 day share price return of 15.22%, alongside a 1 year total shareholder return of 6.08% and a very large 5 year total shareholder return. General Electric now trades only slightly below some intrinsic value estimates while sitting well under the average analyst target, and on the narrative view its fair value sits at $307 against a last close of $317.89, a 3.5% overvalued reading. On the P/E lens the shares trade on 36.8x earnings, above both the 35.6x industry average and the same 35.6x peer group level, and above a fair ratio estimate of 34.7x. The company's reliance on Boeing's production tempo and exposure to tight aerospace supply chains remain the key risks to the wide moat narrative.

AAR Corp reported record fiscal first-quarter sales of $918 million, up 24% year over year including 11% organic growth, with adjusted diluted EPS of $1.49 per share, up 38%, and adjusted EBITDA margin expanding 100 basis points to 12.7%. Alongside the results, the company agreed to acquire a 65% controlling interest in MRO Holdings at an implied enterprise value of approximately $4 billion, a 10.7 times adjusted EBITDA multiple net of tax benefit synergies. MRO Holdings is expected to generate approximately $1 billion in adjusted sales, $285 million in adjusted EBITDA at a 27% margin, and more than $200 million in adjusted operating cash flow in calendar 2026. The combined company would have roughly $4.3 billion in annual sales and nearly $700 million in adjusted EBITDA, lifting the adjusted EBITDA margin to 16% before synergies from about 12%, with a new medium-term target of 19% to 20% over the next three to four years. AAR expects approximately $75 million in run rate cost synergies within three to four years, funded by about $1 billion of AAR equity, including roughly $780 million to MRO Holdings shareholders at $135 per share and about $230 million via a PIPE, plus approximately $2.1 billion of new debt, taking net leverage to about 3.6 times at close before declining toward its 2 to 2.5 times target range.

BAE Systems' new Identification Friend or Foe AN/APX-127(V)1 Combined Interrogator Transponder has received AIMS certification from the Department of War for the U.S. Air Force's F-16 Fighting Falcon. The AIMS certification is a U.S. and NATO interoperable standard that marks the IFF solution ready for use, and the next-generation CIT will improve identification and enable enhanced decision making to distinguish between allied forces and potential threats in contested scenarios. The modernized system consolidates interrogator and transponder functions into one box for highly maneuverable aircraft, and its open-system architecture allows for software upgrades, reducing the risk and cost associated with hardware modifications. With the same form factor, it is a drop-in replacement for the AN/APX-113(V), AN/APX-125(V), and AN/APX-126(V) CITs currently operating on multiple U.S. and international platforms, and it is AIMS Mark XIIB IFF certified with Mode S and Mode 5 for secure and encrypted data exchange. Work on the AN/APX-127(V)1 CIT is performed at BAE Systems' facilities in Greenlawn, N.Y. and Austin, Texas, and the company expects to start delivering on the first 90-unit production lot this year.