Star Alliance Gives Contract to B/E Aerospace for Economy Class Seats
By Lauren Pollock, Dow Jones Newswires | Oct. 04, 2011
The airline industry's Star Alliance gave aircraft-products manufacturer B/E Aerospace Inc. a contract to supply long-haul economy-class seats, the first time the alliance has ordered aircraft parts together.
The alliance -- which is made of members including United Continental Holdings Inc. and US Airways Group Inc., among others -- said Air China Ltd., Austrian Airlines AG and Deutsche Lufthansa AG will be the initial carriers to place these seats on their long-haul fleets, with deliveries expected to begin next year.
Financial terms of the deal weren't disclosed.
The alliance said the new seat will benefit member carriers, offering shortened delivery lead times, reduced development expenses and competitive pricing.
B/E Aerospace, which makes cabin equipment ranging from fasteners to cooking equipment, has benefited recently from strong order flow due to a resurgent airline sector. In July, the company said its second-quarter profit climbed 47% on strong orders for a diverse range of aircraft equipment.
Shares were off 3.9% at US$29.50 in recent trading amid a broad market downturn.