Page 77 - World Airnews Magazine June 2020 Edition

NEWS DIGITAL

WHY SHARES OF TEXTRON ARE

HIGHER TODAY

Signs are emerging that the worst of the macroeconomic slump
could be over

By Lou Whiteman

The best Textron shareholders can hope for is a quick end to
the pandemic and a return to more normalized economic activity.
Shares of Textron rallied recently along with the broader Investors were treated with reasons for optimism on Tuesday as
markets, closing up 11%. Textron investors haven't had much to the US economy seemed to rev up for the Memorial Day weekend,
smile about so far in 2020, but the stock in recent sessions has and positive headlines on the COVID-19 treatment and vaccine
started to gain back some of what was lost during the COVID-19 fronts.
pandemic sell-off.
NOW WHAT
SO WHAT Investors should be warned that while the news flow and market
Textron had been an underperformer long before the pandemic, sentiment were optimistic on Tuesday, the pandemic is far from
but COVID-19 and the outbreak's impact on the economy resolved and it is still possible a second wave is right around
threatened to further delay the company's hopes for a turnaround. the corner. It's important not to get too excited about positive
Textron is an industrial conglomerate involved in manufacturing a developments, just as it is important not to sell everything and
range of products from helicopters to golf carts to snowmobiles to hide your money under the mattress on down days.
business jets. Shares of Textron were down nearly 60% since early February as
The helicopter business has some of the best potential in the recently as mid-May but have been on the upswing over the past
portfolio, including involvement in a number of big-money defence week. The stock is still down 32% year to date.
competitions, but those competitions are going to take years to If a recovery is taking hold, I'm optimistic Textron has bottomed
play out. Heading into 2020 the best chance for a rebound came out and can slowly creep higher. But even if the macro issues are
from business jet sales, and with the economy at a standstill, now in the past there is still not an obvious catalyst in the near
demand for corporate jets is likely to be muted for the near future. term to get Textron rocketing higher. Investors should be cautious
buying into this rally. Q

NEWS DIGITAL

ASTRAL ANNOUNCES UPTURN

IN AFRICA NETWORK

also to Kismayo and Bosaso in Somalia, According to Michael Mutahi,
which brings the number of destinations Operations Director of Astral Aviation,
While there has been a reduction it serves on schedule to 13, according to there have been a number of operational
in capacity to, from, and within Africa, Charles Simiyu, Commercial Director of challenges relating to crew quarantine
which has been caused by a stoppage of Astral Aviation. restrictions and turn-around at certain
passenger flights and limited frequencies During the pandemic, Astral has airports, however Astral has managed to
on freighter aircraft, Astral Aviation operated a number of charter flights for ensure that its flights continue to operate
continues to operate cargo freighters Personal Protective Equipment (PPE) and safely and within the Covid-19 guidelines
from its Nairobi hub to 13 Destinations medical items to various African countries, of the countries that it operates to.
in Africa, which include South Sudan, which include the Democratic Republic Astral operates a fleet of B747-400F
Somalia, Uganda, Tanzania, South Africa, of Congo, Mozambique, Eritrea, Burundi, with perishables from its Nairobi Hub to
Mozambique, Malawi, and Zambia, Madagascar, Djibouti, Yemen, and Sudan, Doncaster, UK, and Liege, Belgium with
according to Sanjeev Gadhia, Chief thus providing a life-line for air cargo Network Airline Services, and a fleet of
Executive Officer of Astral Aviation. imports into regions, which have been cut regional freighters, which it operates to
Effective 25th May 2020, Astral will off from the rest of the world, according over 50 Destinations in Africa.
operate to Lilongwe in Malawi and Lusaka to Anthony Mwangi, Charter Manager of In 2020, Astral celebrates a milestone of
Astral Aviation.
in Zambia with a weekly frequency, and operating in Africa for 20 years. Q

World Airnews | June Extra 2020
— 29 —