Honeywell Considers Aerospace Division Spinoff Amid Investor Pressure, and More

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Honeywell's Potential Aerospace Spinoff Could Value Unit Up to $120 Billion

Honeywell International is considering spinning off its aerospace division following pressure from activist investor Elliott Investment Management, which holds a $5 billion stake in the company.

Key Points

• Elliott's Involvement: Elliott Investment Management, known for influencing corporate restructurings, has advocated for Honeywell to separate its aerospace and automation businesses to enhance shareholder value.
• Aerospace Division's Significance: Honeywell's aerospace segment accounts for approximately 40% of the company's revenue, supplying components and systems to major aircraft manufacturers like Boeing and Airbus.
• Strategic Review: Honeywell's board has been evaluating strategic alternatives and plans to provide an update during its fourth-quarter earnings release in January.
• Market Reaction: Following the announcement, Honeywell's stock rose by over 3%, reaching a new all-time high of $236, indicating investor approval of the potential separation.

Implications

If Honeywell proceeds with spinning off its aerospace division, it could lead to a more focused corporate structure, potentially unlocking shareholder value and improving operational efficiency.

This move aligns with a broader trend of large conglomerates streamlining their operations to become more agile and responsive to market demands.

However, the separation would also mean that each entity must independently navigate industry challenges and capitalize on growth opportunities.

Other key Aviation and Aerospace Industry updates for today 👇

Joby Aviation Completes FAA-Approved Tail Structure Testing

Joby Aviation has completed static load testing of its aircraft's tail structure, marking a significant step toward FAA certification. This testing, conducted in Santa Cruz, California, is the first major aerostructure test with FAA representatives present.

The tests applied loads exceeding those expected during flight, providing essential data for type certification.

Joby's electric air taxi is designed to carry a pilot and up to four passengers at speeds up to 200 mph, offering high-speed, low-noise, and zero-emission travel.

H55 and Elfly Group Partner to Introduce Electric Aircraft in Nordic Region

Swiss startup H55 has partnered with Norwegian company Elfly Group to distribute the B23 Energic, a fully electric aircraft, in the Nordic region.

Elfly Group plans to acquire three units, with options for two more, aiming for delivery in 2026. This collaboration also designates Elfly Group as the exclusive distributor for the B23 Energic in Norway, Sweden, and Denmark.

A demonstration tour is scheduled for early 2025, allowing flight schools and pilot training academies to experience the aircraft's capabilities.

Pratt & Whitney's GTF Engine Receives FAA Certification for A321XLR

Pratt & Whitney's GTF engine has received FAA certification to power the Airbus A321XLR, a long-range single-aisle aircraft. This engine offers improved fuel efficiency and reduced carbon emissions compared to previous models.

The A321XLR, which can carry more passengers over longer distances, is expected to enter service in 2025.

Pratt & Whitney is also working on the GTF Advantage engine, aiming for certification and delivery in 2025. This next-generation engine is designed to provide 4-8% more takeoff thrust and up to 1% additional fuel efficiency.

Collins Aerospace Unveils Avionics Modernization for King Air and Hawker Aircraft

Collins Aerospace has announced an avionics modernization program for Beechcraft King Air and Hawker aircraft.

The program includes upgrading King Air 200 and 300 series aircraft from Pro Line 21 to Pro Line Fusion, enhancing cockpit technology and performance. Additionally, factory-installed Pro Line Fusion King Air aircraft will receive comprehensive system upgrades.

Hawker 750, 800, and 900 series aircraft will also benefit from Pro Line 21 modernizations, improving operational capabilities and safety features to meet next-generation airspace requirements.

Lufthansa Urges EU to Suspend Open Skies Deal with Qatar

Lufthansa has called for the suspension of the 2021 EU-Qatar open skies agreement, citing concerns over alleged corruption during its negotiations.

The airline argues that the agreement creates significant competitive distortions, with unequal market conditions and social policy disparities between EU and Qatari airlines.

Lufthansa also points to serious corruption allegations, including the "Qatargate" scandal, which involved bribery of European officials by Qatar.

The airline urges the European Commission to suspend the agreement and address these issues.

Korean Air Secures Six More Airbus A321-200NX Aircraft

Korean Air has exercised options to acquire six additional Airbus A321-200NX aircraft, with a total cost exceeding KRW 1.26 trillion.

The A321-200NX, known for its fuel efficiency and advanced technology, will support Korean Air's expansion plans and improve its competitive position in the aviation market.

China Advances Hypersonic UAV Technology with MD-19 Test

China has successfully tested its MD-19 hypersonic near-space aircraft, marking a significant advancement in unmanned aerial vehicle (UAV) technology. The MD-19 is designed to reach hypersonic speeds and is capable of horizontal landing on a runway.

This test, conducted in December 2024, demonstrates China's progress in developing high-speed, high-altitude UAVs for various applications, including reconnaissance and surveillance.

The MD-19's ability to operate in near-space environments could enhance China's capabilities in both military and civilian aerospace sectors.

Xpeng's Flying Car Demonstrates Urban Flight in Shanghai

Xpeng AeroHT, a subsidiary of Chinese electric vehicle maker Xpeng, has successfully conducted a test flight of its "Land Aircraft Carrier" flying car in Shanghai.

This marks the first flying car flight in Shanghai, demonstrating the vehicle's capability to perform complex maneuvers in an urban environment.

The "Land Aircraft Carrier" is scheduled to be unveiled at the 2025 Consumer Electronics Show (CES) and is expected to enter mass production and delivery in 2026.