B/E Aerospace

B/E Aerospace, Inc.
Fate Acquired
Founded 1987 as Bach Engineering[1]
Headquarters Wellington, Florida, USA
Area served
 Global
Key people
 Amin Khoury, founder and Chairman
Products Commercial & Business Jet Cabin Interior Products
Revenue IncreaseUS$2.933 billion (2016)[2]
IncreaseUS$506.6 million (2016)[2]
IncreaseUS$311.1 million (2016)[2]
Total assets IncreaseUS$4.41 billion (2016)[2]
Total equity IncreaseUS$1.875B (FY 2011)[3]
Owner Rockwell Collins Inc.
Number of employees
 10,057[4]
Divisions Commercial Aircraft
Business Jets
Website http://beaerospace.com

B/E Aerospace, Inc. was a manufacturer of aircraft passenger cabin interior products for the commercial and business jet aircraft markets. B/E Aerospace has leading worldwide market shares in all of its major product lines and serves virtually all of the world's airlines, aircraft manufacturers and leasing companies through its direct global sales and customer support organizations. Based in Wellington, Florida,[5] the company was capitalized as a $4.2 billion corporation as of January 2016.[6]

History

Founded by Amin Khoury in 1987, B/E Aerospace has evolved from a $3 million company to $2.6 billion in revenue,[7] making it the world’s leading manufacturer of aircraft interior products and solutions for the commercial, business jet, and military markets. B/E’s history has been one of multiple acquisitions coupled with strong internal growth.[8]

On June 1, 2005, Air Canada awarded a $50-million (U.S.) contract to Florida-based B/E Aerospace Inc., to upgrade seating in 143 aircraft.[9]

In 2012, B/E's ALCI division became the sole source for all future lavatories on new build Boeing 737 aircraft. Introducing their patented Spacewall lavatory, airlines can take advantage of space provided to add up to 6 passenger seats per aircraft. Delta Air Lines was the launch customer, with the first aircraft delivery on 9/27/2013.

In December 2014, B/E announced that it had completed the spin-off of its aerospace fasteners and consumables business, creating KLX, Inc. (Nasdaq: KLXI).[10]

B/E Aerospace was bought in April 2017[11] for $6.4 billion by the avionics and aircraft connectivity provider Rockwell Collins based in Cedar Rapids, Iowa, which competes with Honeywell and more recently with Garmin. B/E shareholders would own 20% of the new Rockwell which would have $8.1 billion in revenues and $1.9 billion in pre-tax earnings with nearly 30,000 employees.[12]

Products

The company is a major provider of airline seats to many airlines worldwide. Some significant customers include United Airlines, Delta Air Lines, Emirates Airlines, Qatar Airways, Air France, KLM, Lufthansa, Qantas, Japan Airlines, and Southwest Airlines. Customers using the company's most popular product - Diamond Business Class Seat, include Aeroflot, Aeromexico, Air Canada, Air China, American Airlines, China Airlines, China Southern Airlines, Delta Air Lines, KLM, Qatar Airways, Thai Airways, United Airlines, Virgin Australia and Xiamen Airlines. Some of B/E Aerospace's rivals in the airline seating industry include Acro Aircraft Seating in the UK, Zodiac Seats U.S. in Gainesville, Texas, Zodiac Seats France, STELIA Sogerma Seats in France, Geven in Italy, Recaro in Germany, Expliseat in France and Aviointeriors in Italy.

In the Business Jet Seating segment, B/E Aerospace's main competitors are United Technologies Corporation's Decrane Aircraft Seating in Peshtigo, Wisconsin, Iacobucci in Italy, and PAC Seating Systems in Palm City, Florida.

B/E Aerospace also manufactures beverage makers, ovens, oxygen systems, lavatories and interior lighting for commercial aircraft and business jets.[13] B/E Aerospace's Interior Structures division based in Leighton Buzzard UK, manufactures and supplies galley monuments for the Airbus A350.

Oxygen Systems

The FAA announced on 11 August 2008 that it would investigate why "almost half the masks either did not deploy or failed to provide oxygen" during a pan-pan event on American Airlines Flight 31[14] The FAA had recently issued airworthiness directives regarding problems with defective inline flow indicators obstructing the BE Aerospace oxygen masks on several Boeing commercial aircraft models. B/E had identified a repair in February 2006. Boeing then issued a "Special Attention Service Bulletin" to inspect and if necessary repair the masks in April 2007. The directives only require action by April 2013 unless already done.[15]

Acquisition by Rockwell Collins

Rockwell Collins, a manufacturer and supplier of aviation and integrated solutions for both commercial and government applications, filed for regulatory approval for its intended acquisition of B/E Aerospace before the Philippine Competition Commission since the latter has a branch in the Philippines operating a manufacturing plant in Tanauan, Batangas.[16]

As a result of the acquisition, a newly created direct or indirect subsidiary of Rockwell Collins, Quarterback Merger Sub Corp., will merge with and into B/E Aerospace, with the latter surviving the merger as a direct or indirect subsidiary of Rockwell Collins.[16]

References

  1. ↑ Company history (primary source)
  2. 1 2 3 4 "BE Aerospace SEC 10K 2016".
  3. ↑ BE Aerospace (BEAV) annual SEC balance sheet filing via Wikinvest.
  4. ↑ "SEC Form 10-K, year ending Dec. 31, 2014". Corporate Website. B/E Aerospace, Inc. Retrieved 9 January 2016.
  5. ↑ "Locations." BE Aerospace. Retrieved on July 13, 2010.
  6. ↑ "B/E Aerospace, Inc". Google Finance. Retrieved 9 January 2016.
  7. ↑ "SEC Form 10-K, year ending Dec. 31, 2014". Retrieved 9 January 2016.
  8. ↑ http://www.beaerospace.com/profile/company_history.htm
  9. ↑ "Airline upgrading seats".
  10. ↑ "B/E Aerospace, Inc. Completes Spin-off of KLX Inc". Corporate Website. B/E Aerospace. Retrieved 9 January 2016.
  11. ↑ "Rockwell Collins completes acquisition of B/E Aerospace". www.rockwellcollins.com. Retrieved 2017-04-27.
  12. ↑ "Rockwell Collins Buying B/E Aerospace For $8 Billion". Aviation Week. Oct 23, 2016.
  13. ↑ Hough, Jack. "B/E Aerospace: Cleared for Takeoff". Barrons. Dow Jones. Retrieved 20 January 2016.
  14. ↑ Dan Weikel FAA reviewing reports of malfunctioning oxygen masks on American flight, Los Angeles Times, 12 August 2008
  15. ↑ 2008 Passenger oxygen mask airworthiness directives on Boeing aircraft, US Federal Aviation Administration
  16. 1 2 "Commission Decision No. 04-M-002/2017: Acquisition by Rockwell Collins, Inc. of B/E Aerospace, Inc. - Philippine Competition Commission". phcc.gov.ph. Retrieved 2017-05-15.
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