KKPNF Koninklijke Kpn Nv (PK)

Diversified technology company Honeywell International Inc. (HON) recently augmented its strategic ties with China Eastern Airlines by entering into a number of agreements to improve the safety and efficiency features of its growing fleet of aircrafts. The move is also aimed at increasing passenger safety as air passenger travel continues to grow at a rapid pace in China.

In concurrence with the deal, Honeywell will offer specialized avionics products for 58 new Boeing 737NG aircrafts and wheels and brakes for 15 new Airbus A330 aircrafts, bringing the tally of Airbus A330 aircraft in China Eastern Airlines' fleet equipped with its wheels and brakes to 51 by 2015. At the same time, Honeywell will provide an entire range of aftermarket repair and maintenance services for the braking systems for its fleet of Airbus A330 aircrafts.

The avionics products set to be introduced in Boeing 737NG aircrafts include IntuVue 3-D Weather Radar, Traffic Alert and Collision Avoidance System (TCAS), and Enhanced Ground Proximity Warning System (EGPWS). The weather radar provides flight crews with intuitive displays of weather to minimize fuel consumption by avoiding unnecessary diversions. TCAS facilitates airlines to safely navigate through congested areas with the help of an informative display of traffic, thereby saving fuel, while EGPWS predicts potential conflicts between the aircraft's flight path and terrain or obstacles.

In addition to increased passenger safety features, the wheels and brakes of Honeywell further reduce costs, fuel consumption, and carbon emissions during flight. The carbon heat-sink materials, titanium braking components, and antioxidant protections used in the braking systems enhance durability and improve landing performance.

With a continuous flow of contracts from new as well as existing customers, Honeywell is poised to generate healthy revenue in the coming quarters. Based in Morris Township, NJ, the company manufactures a wide range of aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation.

Honeywell organizes its business into four operating segments – Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems. The Aerospace segment provides integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.

Honeywell faces intense competition from industry bigwigs such as China Merchants Holdings (International) Company Limited (CMHHY), Koninklijke KPN N.V. (KKPNF), and Jardine Strategic Holdings Ltd. (JSHLY), each carrying a Zacks Rank #1 (Strong Buy). Honeywell presently has a Zacks Rank #3 (Hold).

 
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