The House voted Thursday night to ease across-the-board federal spending cuts and head off future government shutdowns. The legislation, heading to the Senate for a vote, calls for federal employees hired in 2014 to contribute a total of 10.6% of their salaries to their retirement benefits, a 1.3% increase in contributions from those made by 2013 hires. This increase is expected to reduce the budget deficit by $23 billion over the next decade without raising taxes and erase $63 billion in across-the-board spending cuts in domestic and defense programs.
The International Air Transport Association (“IATA”) announced that 2014 will be the airline industry’s most profitable year ever as the IATA increased its profit forecast for 2013 and 2014 based on a variety of factors currently driving positive growth in the industry. The association is now forecasting a combined net profit of $19.7 billion in 2014, which represents a $3.3 billion increase from the association’s $16.4 billion forecast in September. Similarly, the IATA expects 2013 profit to reach $12.9 billion, up from the previous prediction of $11.7 billion. Among the reasons, officials cite the continuous easing of fuel prices due to the discovery of substantial new supplies as well as decreased geopolitical tension particularly surrounding Iran as main drivers of profitability. Additionally, structural improvements in the airlines industry also play an influence as airlines have introduced broader ancillary fees to open up new sources of revenue. North American carriers are expected to contribute the most with forecasted profits of $8.3 billion. Asia-Pacific and European carriers follow behind with forecasts of $4.1 billion and $3.2 billion, respectively.
OSI Systems, Inc. (Down 19.6%) – Shares were down this week after Pomerantz Grossman Hufford Dahlstrom & Gross LLP filed a class action lawsuit against the Company regarding false and misleading statements about business, operational and compliance policies.
CapitalWorks, LLC acquired Morgenthaler Private Equity’s Avtron Aerospace Inc., a provider of electrical, electronic, and hydraulic aircraft component test solutions for the global commercial and military aerospace markets. Terms of the deal were not disclosed.
3P Equity Partners, LLC and Silver Sail Capital, LLC acquired Hammond, Kennedy, Whitney & Co.’s Visioneering Inc., a provider of high-quality fabrication, assembly, and automation tooling systems for the aerospace and defense industry. Terms of the deal were not disclosed.