Honeywell Spinoff Creates 90+ Billion Dollar Aerospace Giant, and More

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Aerospace Powerhouse Emerges as Honeywell Announces Strategic Split

Honeywell's historic three-way split marks the end of another major American industrial conglomerate.

The aerospace division now emerges as a potential $90-120 billion standalone powerhouse.

The separation, set to be completed by late 2026, comes after pressure from Elliott Investment Management's $5 billion stake and follows the successful precedent of GE's breakup.

The aerospace unit, which generated $15 billion in revenue in 2024, stands to become one of the largest publicly traded aerospace suppliers.

Key Points

• Aerospace Division Performance: Revenue were up 15% to $11.47 billion, with segment profits increasing 18% to $3.2 billion in the first nine months of 2024

• Strategic Timing: Follows $9 billion in recent strategic acquisitions and planned spinoff of Advanced Materials business

• Market Position: Strong presence in engines, cockpit systems, and navigation technology for major manufacturers like Boeing

• Growth Drivers: Robust post-pandemic demand for jet engines and aircraft components

• Competitive Edge: 28% segment margins in aerospace with significant aftermarket opportunities

• Industry Impact: Will create a focused pure-play aerospace company better positioned against GE Aerospace

• Financial Structure: Separation to be tax-free for shareholders, enhancing financial flexibility

What It Means

I believe this separation will create a focused, pure-play aerospace powerhouse that can better capitalize on the industry's growth trajectory.

The timing is particularly strategic, as I see the commercial aviation recovery gaining momentum and defense spending increasing globally.

The independent structure should allow for more agile decision-making and targeted investments in emerging technologies like aircraft electrification and autonomous flight systems.

Other Key Aviation and Aerospace Industry Updates for Today 👇

2. Musk DOGE Team Takes On US Air Traffic Control Modernization

Transportation Secretary Sean Duffy announced that Elon Musk's Department of Government Efficiency (DOGE) will help upgrade America's air traffic control system.

The announcement comes after a deadly collision between an American Airlines jet and an Army helicopter that killed 67 people, and a recent failure of the FAA's safety notification system.

Musk, with Trump's support, promises rapid safety upgrades to replace the current radar-based system, which uses technology from the 1960s.

3. South Asian Airlines Set for Massive 2,835 Aircraft Expansion

Boeing projects Indian and South Asian airlines will add 2,835 commercial aircraft by 2043, up from last year's forecast of 2,705 jets.

The expansion includes 2,445 single-aisle and 370 widebody aircraft, driven by 7% annual air traffic growth.

The region's commercial fleet will grow four-fold, supported by rising middle-class incomes and economic growth.

The demand will also create 129,000 new aviation jobs, marking the fastest growth rate globally.

4. JAL and Delta Planes Collide During Ground Operations at SeaTac

A Japan Airlines Boeing 787 struck a parked Delta 737 at Seattle-Tacoma International Airport on February 5, around 10:17 AM local time.

The JAL plane's right wing hit the Delta aircraft's tail during taxiing near the S Concourse.

The Delta flight, carrying 142 passengers bound for Puerto Vallarta, was in line for deicing. No injuries were reported, and passengers from both planes were safely deplaned.

The FAA is investigating the incident, which occurred in an area not under air traffic control.

5. Cessna Citation Jets Get Major Avionics Enhancement Package

Collins Aerospace announced major upgrades to Pro Line 21 avionics systems for Cessna Citation business jets, launching in second half of 2025.

The enhancement package, available for Citation CJ1+, CJ2+, CJ3, CJ4, and XLS+ fleets, includes Controller Pilot Data Link Communications, ADS-B In weather information, and wireless database uploads.

The modernization also features Privacy ICAO Address and electronic flight bag integration, focusing on improved cockpit efficiency and connectivity.

6. Thai Airways Expands Fleet With Eight New A321neo Aircraft Deal

Thai Airways signed a lease agreement with SMBC Aviation Capital on February 5 for eight Airbus A321neo aircraft, scheduled for delivery in 2026-2027.

The deal supports Thai Airways' regional network expansion and fleet modernization strategy.

This follows the airline's recent Boeing order for 45 787-9 aircraft and AerCap agreement for 10 A321neos.

The airline, which has recovered from its 2020 bankruptcy, currently operates 79 aircraft and aims to enhance operational efficiency and sustainability.

7. Pivotal Announces Military Grade Hybrid eVTOL Platform

Pivotal, known for its BlackFly personal aircraft, announced plans to develop a larger hybrid version of its Helix eVTOL for defense applications.

The new aircraft will be uncrewed or optionally-piloted, building on the company's success with its single-seat Helix model that won the 2024 World Future Award.

The announcement follows Pivotal's recent delivery of four BlackFly aircraft and two simulators to the US Air Force for evaluation.

Here's their personal aircraft version "Pivotal Helix":

8. IndiGo Expands Fleet With First Boeing 787 Dreamliner Deal

IndiGo has signed a damp lease agreement with Norse Atlantic Airways for one Boeing 787-9 Dreamliner, set to begin operations in March 2025.

The six-month lease, extendable up to 18 months, marks IndiGo's first 787 induction. Norse will provide the aircraft, pilots, and maintenance, while IndiGo will deploy its cabin crew.

This move supports IndiGo's international expansion strategy, complementing its current fleet of 438 aircraft, including two wet-leased B777s from Turkish Airlines.

9. New Blended Wing Cargo Aircraft to Transform Canadian Remote Aviation

Nolinor Aviation signed an agreement with Natilus on February 4 to acquire multiple Kona cargo aircraft, a new blended-wing-body freighter designed for remote operations.

The aircraft features 3.8-metric-ton payload capacity, 900-nautical-mile range, and can operate on unpaved runways as short as 800 meters.

The Kona promises 30% better fuel efficiency than conventional aircraft and will help Nolinor serve Canada's northern communities more effectively.

10. ZeroAvia Electric Aircraft System Reaches Major FAA Milestone

ZeroAvia recently received FAA G-1 Issue Paper approval for its 600kW electric propulsion system.

The certification basis establishes airworthiness requirements for the system, which features four 200kW bidirectional inverters and a 2,200-rpm direct-drive motor.

Part of the ZA600 hydrogen-electric powertrain for 20-seat aircraft, the system will be manufactured at ZeroAvia's Everett facility.

The company has nearly 3,000 orders and plans to launch the system on Cessna Grand Caravan through a supplemental type certificate.