Friday, October 24, 2014
AviTrader Daily Aviation News Alert
This is an overview of all articles linked within the selected daily newsletter.
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February 20, 2015 · 556 Views
The bitter dispute between US- and Gulf-based airlines has reached a new level after Emirates flatly rejected an open apology made concerning what was seen as incredibly tactless and insensitive remarks made by Delta’s Chief Executive, Richard Anderson. The unfortunate incident relates back to comments made by a group of American airlines that a number of the larger Gulf carriers had benefited from state subsidies amounting to a figure in excess of US$40bn. As a consequence the American airlines either wanted to renegotiate or scrap the current Open Skies agreement.
Offended by such claims, the Gulf carriers retaliated by questioning whether or not US airlines had received government subsidies totaling US$5bn in the wake of 9/11. Unfortunately Delta’s Anderson, responding to this claim on CNN, said: “It’s a great irony to have the United Arab Emirates from the Arabian Peninsula talk about that, given the fact that our industry was really shocked by the terrorism of 9/11, which came from terrorists from the Arabian Peninsula.” While the UAE and Qatar, two of the States’ allies who have offered either military or logistical support for international operations were particularly upset by these comments, Delta simply made it clear that Anderson had been responding to claims regarding post 9/11 subsidies. “He didn’t mean to suggest the Gulf carriers or their governments are linked to the 9/11 terrorists. We apologize if anyone was offended.”
Unfortunately the largest of the three main Gulf carriers did not see this as acceptable. “We believe that the statements made this week by Mr. Anderson were deliberately crafted and delivered for specific effect,” it confirmed in a statement. However US airlines continue to complain that they have lost significant numbers of bookings since 2008 as a result of Gulf competition and cited documents they indicate demonstrate aid which has allowed their competitors to offer cheap fares. In retaliation, Gulf officials say that most US carriers do not fly the same routes and are losing business only because they offer an inferior service.
This is not a dissimilar situation to the one between Gulf airlines and European carriers, including Lufthansa, and coincidentally has come at the same time as US airlines are trying to have US Exlm Bank closed down. They believe Gulf carriers are benefitting to a greater degree from the export credit agency. The tit-for-tat dialog continues with Western airlines showing concern for the safety of thousands of service industry jobs, a complaint to which Gulf carriers have responded by making it very clear they support at least as many jobs in the aerospace sector with their huge orders for aircraft.
February 20, 2015 · 655 Views
Snecma (Safran), a leading manufacturer of aircraft engines, and Hindustan Aeronautics (HAL), a leading aerospace manufacturer, signed a Memorandum of Understanding (MoU) on January 28th, 2015 in Bangalore to explore establishing a joint venture in India for the production of aero-engine parts. The proposed joint venture will initially focus on the manufacture of high-tech parts for the Dassault Rafale’s Snecma M88 engine, then subsequently contribute to other major aerospace projects of HAL & Snecma, in India and worldwide. Spanning over 30,000 m², the proposed joint venture’s new plant is expected to benefit from substantial investment by the two partners, providing it with state-of-the-art machinery and equipment. This agreement marks a major step forward in the long-standing collaboration between Snecma and HAL. The proposed joint venture will further broaden the scope of the excellent relations established over the past 60 years between Safran affiliates and the Indian aerospace industry. For example, Snecma manufactures the M53 engines powering the Mirage 2000H “Vajra” fighters operated by the Indian Air Force.
December 2, 2014 · 197 Views
On the 7th January 2013 a fire was reported on board a Boeing 787 Dreamliner while parked at Boston’s airport in the USA. The fire was put down to a problem with one of the plane’s lithium-ion batteries. A week later an All Nippon Airways 787 Dreamliner had to make an emergency landing after smoke was discovered inside the plane which was subsequently traced back to another lithium-ion battery. As a consequence of this incident, all 787 Dreamliners were grounded until April of that year until further acceptable testing and improvements were carried out to the battery system on board the plane. The battery itself was manufactured by GS Yuasa and comprised eight individual cells making up a combined weight of 63lbs.
Nearly two years later and the results of the investigation into the first incident have concluded that the lithium-ion battery installed in the plane should not have received certification by the FAA. The National Transport Safety Board (NTSB) were also critical of Boeing who they believed had erroneously ruled out the chances of thermal runaway in its assessment of the battery’s safety. Boeing’s battery tests to obtain original certification included crushing battery cells, driving nails through them and deliberately introducing short circuits to cause failure. Boeing found “nothing adverse happened” while these tests were carried out, and so deemed the battery’s box and internal protection to be of an acceptable standard. Boeing stated that it had followed the certification process set out by the FAA. It would seem that while the cause of the fire has been clearly identified, responsibility for its occurrence has not been accepted in full by anyone.
November 5, 2014 · 164 Views
Back in February this year, Rolls-Royce, the FTSE-100 engine maker, lost over £3bn of its value after shocking the market with its first profits warning in a decade. To announce a second one this October has created considerable concern and Rolls-Royce has decided that over the next 18 months they need to reduce costs by up to £80m a year by axing 2,600 jobs, the majority of which will be in the aerospace sector in Britain and the United States. The focus is on Rolls-Royce’s key Trent engines as they move from the development to the production phase, which consequently requires fewer engineers.
Back in February John Rishton, Rolls-Royce group’s Chief Executive, had admitted that the future was “bumpier than I had expected”, while blaming the current problems on deteriorating economic conditions and a tit-for-tat trade war between the EU and Russia over the Ukrainian crisis which had affected its nuclear and energy business as well as its power-systems unit. This week Rishton has had to admit that “We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last; however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.”
Another consequence of the situation is the unexpected departure of Finance Director, Mark Morris, leaving the company after 27 year without any explanation. He will be replaced by David Smith, who is being promoted from Finance Director of the Rolls-Royce Aerospace division. This second profit warning saw share value fall 11% to 832p, wiping a further £2bn off the company’s value. However, news of the redundancies was well received by investors and the share price rallied by 2%, currently standing at 832p. This is clear confirmation of comments made by Espirito Santo’s analyst, Ed Stacey, who indicated that investors would be expecting a clear message from the new Finance Director and tight control on all finances.
March 25, 2014 · 113 Views
Air France-KLM selected the GEnx-1B engine to power its 25 Boeing 787 Dreamliners and 12 leased 787 aircraft. The total engine order is valued at more than $1.7bn. Air France-KLM and GE Aviation have also signed an agreement that will allow Air France-KLM to offer maintenance, repair and overhaul (MRO) services for the GEnx-1B engine. Under this agreement, Air France-KLM will be licensed to perform maintenance and overhaul work on the GEnx-1B engine and GE will provide technical support and assistance on overhaul workscoping and component repair licenses, comprehensive material support and training.
March 7, 2014 · 80 Views
International Lease Finance Corporation (ILFC) has closed a new senior secured term loan of $1.5 billion. The loan will bear interest at LIBOR plus 275 basis points with a 0.75% LIBOR floor, is priced at 99.5% of par value, and will mature in 2021. The collateral used to support the transaction has an initial weighted average age of 9.1 years. It will be secured primarily by a first priority-perfected lien on the equity of certain of ILFC’s subsidiaries, which directly or indirectly own a pool of aircraft and related leases. ILFC plans to use the proceeds for general corporate purposes, including purchasing aircraft and supporting the company’s liquidity cushion.
February 26, 2014 · 80 Views
In 2013, Airbus achieved a new industry record of 1,619 gross commercial orders (FY 2012: 914 gross orders) with net orders of 1,503 aircraft (FY 2012: 833 net orders), excluding ATR. Gross orders comprised 1,253 A320 Family aircraft, 77 A330s, 239 A350 XWBs and 50 A380s. Fourth-quarter orders included Emirates Airline’s agreement for 50 A380s and Etihad Airways’ order for 50 A350 XWBs, 36 A320neos and one A330-200F. Airbus Military (now part of Airbus Defence and Space) received 17 net orders (FY 2012: 32 net orders). Airbus’ net order intake increased sharply to €202.3bn (FY 2012: €88.9bn). At the end of 2013, Airbus’ consolidated order book was valued at €647.4bn (year-end 2012: €525.5bn). The Airbus Commercial backlog was worth €627.1bn (year-end 2012: €505.3bn), comprising 5,559 Airbus aircraft (year-end 2012: 4,682 units) and representing over eight years of production. Airbus Military’s order book was worth €20.8bn (year-end 2012: €21.1bn). Airbus series aircraft deliveries increased to 626 aircraft (FY 2012: 588 aircraft, including three A330s without revenue recognition). Airbus Military delivered 31 aircraft (FY 2012: 29 aircraft). Airbus’ consolidated revenues increased seven percent to €42,012m (FY 2012: €39,273m), reflecting higher commercial and military aircraft deliveries. The Division’s consolidated EBIT rose to €1,710m (FY 2012: €1,252m). Airbus Commercial’s revenues rose to €39,889m (FY 2012: €37,624m). The Airbus Commercial reported EBIT was €1,595m (FY 2012: €1,147m) with the EBIT before one-off at €2,216m (FY 2012: €1,669m). Airbus Commercial’s EBIT before one-off benefitted from the improved operational performance, including favourable volume, some better pricing and an improvement in A380 losses. It also included higher A350 XWB programme support costs. Revenues at Airbus Military rose to €2,893m (FY 2012: €2,131m), driven by the A400M ramp-up and higher volumes from both light and medium transport planes and tankers. The EBIT at Airbus Military was €166m (FY 2012: €93m).
January 29, 2014 · 76 Views
Boeing Commercial Airplanes fourth-quarter revenue increased to $14.7bn and full-year revenue increased to a record $53bn on higher delivery volume. Fourth-quarter operating margin improved to 10.3% and full-year operating margin grew to 10.9% on the higher volume, favorable delivery mix and continued strong operating performance. During the quarter, the company launched the 777X with 259 orders and commitments. During the year, the 787 program completed first flight of the 787-9, successfully launched the 787-10 and began operating at a 10 per month production rate in final assembly. The 737 program delivered at a record production rate of 38 per month and has won nearly 1,800 firm orders for the 737 MAX since launch. In 2013, a record 648 commercial aircraft were delivered. In January 2014, the company reached an eight-year contract extension through 2024 with the International Association of Machinists & Aerospace Workers District 751 (IAM). Commercial Airplanes booked 465 net orders during the quarter and 1,355 during the year. Backlog remains strong with 5,080 airplanes valued at a record $374 billion.
January 9, 2014 · 67 Views
The A350 XWB development aircraft, MSN3, is in Bolivia where it will perform a series of tests at the high altitude airfields of Cochabamba and La Paz. Cochabamba is around 8,300 feet above sea level, and La Paz is one of the world’s highest airports at 13,300 feet. Operations at such high altitude airfields are particularly demanding on aircraft engines, Auxiliary Power Unit (APU) and systems. The aim of these trials is to demonstrate and validate the full functionality of engines, systems, materials as well as to assess the overall aircraft behaviour under these extreme conditions. A number of take-offs with all engines operating and with simulated engine failures are being performed at each of the airfields to collect data on engine operating characteristics and validate the aircraft take-off performance. The autopilot behaviour will also be evaluated during automatic landings and go-arounds. Since the A350 XWB’s first flight with MSN1 on June 14th 2013, over 800 flight test hours have been performed in close to 200 test flights by both MSN1 and MSN3. In total the A350 XWB flight test campaign will accumulate around 2,500 flight hours with the fleet of five aircraft. The rigorous flight testing will lead to the certification of the A350-900 by the European EASA and US FAA airworthiness authorities, prior to entry into service in Q4 2014.
July 5, 2013 · 66 Views
Firefly, Malaysia Airlines’ subsidiary carrier has taken ownership of its first brand-new ATR 72-600. The aircraft is the first of 20 latest generation firm ATRs, plus 16 options, ordered by Malaysia Airlines in December 2012. Firefly currently operates 12 ATR 72-500s, and with the arrival of the new ATR 72-600s will almost triple its exclusively ATR 72 aircraft fleet, taking the total to over 30 aircraft.
June 26, 2013 · 42 Views
Certification testing is underway on the first Passport development engine at GE Aviation’s Peebles Testing Operation in Ohio. The engine began ground testing on June 24th and ran for more than three hours, reaching more than 18,000 lbs. of standard day sea-level takeoff thrust. Eight Passport engines and one core will be involved in the engine certification program. Flight testing on GE’s flying testbed is scheduled for 2014. Engine certification is expected in 2015. The Passport engine certification program follows three years of validation testing. GE Aviation has conducted validation tests on the fan blisk design, including two fan blade-out rig tests, ingestion tests and a fan aero rig test to demonstrate fan efficiency. Testing is complete on the third eCore demonstrator, and GE has accumulated more than 300 hours of testing on eCore demonstrators to date.
May 22, 2013 · 55 Views
Rolls-Royce has won an order from US leasing company CIT Aerospace for Trent XWB engines, to power ten Airbus A350 XWB aircraft and Trent 700 engines to power 13 Airbus A330 aircraft. The Trent XWB engines will power ten CIT A350 aircraft that were announced in January 2013 which were in addition to five A350 XWB aircraft already on order. The Trent XWB, specifically designed for the Airbus A350, is the fastest selling Trent engine ever, with more than 1,200 already sold. The engine variant that will power the A350-800 and -900 was awarded European Aviation Safety Agency (EASA) type certification in February. The engine will power the first flight of the Airbus A350 XWB this year and the aircraft’s first in-service flight in 2014.
October 22, 2014 · 89 Views
Aviation Technical Services (ATS) has reached an agreement with its longtime customer Southwest Airlines to provide Maintenance, Repair and Overhaul (MRO) services to the carrier at its newly‐acquired and renovated facility at Kansas City International Airport (MCI). The work will begin later this year and will take place over the course of the next three years. Over the course of several decades, Southwest has been bringing its planes to ATS’ location on Paine Field in Everett, Washington. The expansion to Kansas City is a good fit for Southwest, where the carrier operates 67 daily nonstop flights to 26 destinations.
October 22, 2014 · 87 Views
Authorized by CAAC, EASA and FAA, Ameco released that it can perform A330 landing gear overhaul now. The 1st workload will come at the beginning of November. As the first MRO in China to develop landing gear overhaul, Ameco’s capabilities cover most A320, A321 and A330 fleet; and the Boeing landing gear overhaul mainly focus on Boeing 737NG and Boeing 747. Aircraft Maintenance and Engineering Corporation, Beijing (Ameco Beijing) is a joint venture between Air China and Lufthansa German Airlines. It was established on August 1st 1989, with Air China holding 60% and Lufthansa 40%.
October 22, 2014 · 49 Views
Embraer’s Legacy 500 executive jet was granted FAA (Federal Aviation Administration) certification during a ceremony at the National Business Aviation Association Conference and Exhibition, in Orlando, Florida. This approval enables entry into service of the aircraft in the United States and in countries that require such certification.
October 22, 2014 · 122 Views
Flying Colours Corp., the North American MRO, completion and refurbishment specialist has today signed a multi-million dollar Joint Venture agreement with Sparkle Roll Technik Co., Ltd. (“SRT”), a business jet technical solution provider within Sparkle Roll Aviation (Holding) Group (“SRA”). With the phase one hangar facility set up at Linyi City in Shangdong Province China, the main business focus for the new JV will be on private jet cabin modification and aircraft maintenance. The first project, which will begin later this month, will see eight B-registered CRJ-200 aircraft, procured by SRT, converted into VIP configurations. The work schedule for each of the initial aircraft modifications is expected to take up to eight months and will be undertaken at Flying Colours Corp., Peterborough Canada. The later conversions will have the interiors monuments manufactured in North America, with the JV’s technicians completing the final installation in China. As part of the agreement, Flying Colours Corp. will train the technicians of the JV in specific interiors techniques in Canada and will provide on-site support for the ultimate installation in China. In addition, Flying Colours Corp. team will handle all final aircraft certification.
October 22, 2014 · 73 Views
Boeing celebrated the groundbreaking of its new 777X Composite Wing Center at the Everett, Wash., campus. Permitting for the new 1-million-square-foot facility was completed approximately seven weeks earlier than anticipated, allowing for an accelerated start to construction. Boeing is investing more than $1bn in the Everett site for construction and outfitting of the new building. Once completed, the facility located on the north side of the main final assembly building will help usher in composite wing fabrication for the company’s newest commercial jetliner and sustain thousands of local jobs for decades to come. Completion of the new building is expected in May 2016. To date, the 777X has accumulated 300 orders and commitments. Two models will comprise the 777X family – the 777-8X, with approximately 350 seats and a range capability of more than 9,300 nautical miles; and the 777-9X, with approximately 400 seats and a range of more than 8,200 nautical miles.
October 22, 2014 · 56 Views
B/E Aerospace released its third quarter 2014 financial results, with revenues increased by 24% and adjusted operating earnings increased 26%. Adjusted earnings per diluted share increased 63% (29% using comparable tax rate in both years). The Company currently estimates that it will incur, during the second half of 2014, debt redemption costs of approximately $235m, including the write-off of unamortized debt issue costs, approximately $43m in legal, accounting, and advisory costs, and approximately $67m related to international tax initiatives. The Company also expects to incur business repositioning and separation costs of approximately $94m.
October 22, 2014 · 56 Views
Boeing reported third-quarter revenue increased 7% to $23.8bn on higher deliveries. Core earnings per share (non-GAAP) increased 19% to $2.14, driven by strong performance across the company’s businesses. Third-quarter core operating earnings (non-GAAP) increased 13% to $2.4bn from the same period of the prior year. GAAP earnings per share was $1.86 and GAAP earnings from operations was $2.1bn. Core earnings per share guidance for 2014 increased to between $8.10 and $8.30, from $7.90 to $8.10 on continued strong operating performance. GAAP earnings per share guidance for 2014 increased to between $6.90 and $7.10, from $6.85 to $7.05. Operating cash flow before pension contributions guidance increased to greater than $7bn. Commercial Airplanes operating margin guidance increased to approximately 10.5%. Boeing Commercial Airplanes third-quarter revenue increased 15% to a record $16.1bn on higher deliveries. Third-quarter operating margin was 11.2%, reflecting the dilutive impact of 787 and 747-8 deliveries and higher period costs partially offset by the delivery volume and continued strong operating performance. During the quarter, the company launched the 737 MAX 200 with a commitment from Ryanair for 100 airplanes. The 737 program has won nearly 2,300 firm orders for the 737 MAX since launch. Due to the continued strong demand for the 737 family of airplanes, the company intends to increase the 737 production rate from 42 to 47 per month in 2017, with recently announced plans to increase to 52 per month in 2018. Also during the quarter, the first GEnx-powered 787-9 Dreamliner was delivered. Commercial Airplanes booked 501 net orders during the quarter. Backlog remains strong with over 5,500 airplanes valued at a record $430bn.
October 22, 2014 · 78 Views
FLY Leasing, a global lessor of modern commercial jet aircraft, has signed agreements with a leading Asian airline to purchase and lease back three new Boeing 737-800 aircraft. FLY has delivered the first aircraft, with the two remaining aircraft due for delivery during the current quarter.
October 22, 2014 · 495 Views
PPG Industries’ aerospace transparencies group is designing windshields for the KC-390 military transport aircraft that will be the largest glass windshields PPG has produced and the industry’s first to have a compound bent shape affording ballistics resistance and night-vision capabilities. PPG is under contract with Embraer Defense and Security to design and manufacture production and spare windshields, side cockpit windows and fuselage windows for the KC-390 aircraft. According to Connie Poulsen, PPG global director for military transparencies, the windshields will be about 11 square feet to provide pilots with expansive viewing. The No. 2 and No. 3 side cockpit windows also will be glass and meet requirements for ballistics resistance and night-vision compatibility.
October 22, 2014 · 100 Views
Boeing and Commercial Aircraft Corp. of China (COMAC) opened a demonstration facility on October 22nd, that will turn waste cooking oil, commonly referred to as “gutter oil” in China, into sustainable aviation biofuel. The two companies estimate that 500 million gallons (1.8 billion liters) of biofuel could be made annually in China from used cooking oil. Boeing and COMAC are sponsoring the facility, which is called the China-U.S. Aviation Biofuel Pilot Project. It will use a technology developed by Hangzhou Energy & Engineering Technology Co., Ltd. (HEET) to clean contaminants from waste oils and convert it into jet fuel at a rate of 160 gallons (650 liters) per day. The project’s goal is to assess the technical feasibility and cost of producing higher volumes of biofuel. Sustainably produced biofuel, which reduces carbon emissions by 50 to 80 percent compared to petroleum through its lifecycle, is expected to play a key role in supporting aviation’s growth while meeting environmental goals. The Boeing Current Market Outlook has forecast that China will require more than 6,000 new airplanes by 2033 to meet fast-growing passenger demand for domestic and international air travel.
October 22, 2014 · 342 Views
Aviall, a wholly owned subsidiary of The Boeing Company, signed an agreement with GE Aviation to become a provider of GE CF34-3A and CF34-3A2 used material and lease engines powering the Bombardier Challenger 601. The ownership transfer builds on an exclusive distributor agreement launched in 2009, where Aviall is responsible for forecasting, ordering, and delivering all genuine Original Equipment Manufacturer (OEM) replacement parts that are unique to CF34-3 engines. This agreement will leverage Aviall’s worldwide part distribution capabilities. Across the CF34 family, GE has delivered more than 6,000 engines and continuously invests in product enhancements. Today, CF34 engines are in service with more than 1,000 business jet operators and more than 200 regional jet operators.
October 22, 2014 · 113 Views
Thales have once again been selected by Gulfstream to deliver fly-by-wire flight control systems on the G650ER unveiled in May. This follows the unveiling of the G500 and G600 programmes on October 14th, which will also feature Thales fly-by-wire flight controls. The G650ER’s 7,5000 nautical miles range (13,890 kilometers), opens up more destination pairs than ever before for a business jet, including New York to Hong Kong or Los Angeles to Delhi. This requires flight controls that ensure superior performance and safety whilst reducing weight and optimising volume, therefore reducing fuel consumption. All Thales designed flight controls on Gulfstream jets have been designed specifically with these goals in mind.
October 22, 2014 · 376 Views
Deutsche Lufthansa AG reported that in the course of realigning the Group’s IT activities, it will be entering into a long-term IT partnership shortly. According to the terms to be agreed, Lufthansa will outsource all of the Group’s IT infrastructure services to IBM. The IT group is also expected to take over the Infrastructure division of the current Lufthansa Systems AG. The outsourcing agreement is to have a term of 7 years. It will enable Lufthansa to benefit from a permanent reduction of IT infrastructure costs by average approximately €70m annually. An offer to this effect has been submitted and is now subject to final negotiations. In connection with this transaction, Lufthansa will incur €240m in one-time charges due to restructuring and effects from the purchase price in the financial year 2014. This impact will not be recognized in the operating result, which is relevant for the financial guidance, but in the IFRS net result of the Lufthansa Group and the HGB (local GAAP) result of Deutsche Lufthansa AG. The plan is to split Lufthansa Systems into three companies and to sell the Infrastructure division as part of the outsourcing process. The Airline Solutions and Industry Solutions divisions of the Lufthansa IT subsidiary are to operate as independent companies in their respective markets in the future. The agreements will be subject to the approval of the Lufthansa Supervisory Board and the antitrust authorities. Execution will also require the timely and successful conclusion of the social compensation plan and the reconciliation of interests. According on the current status of the negotiations, the new partner is expected to take on all approximately 1,400 employees of the Infrastructure division. The Kelsterbach and Budapest sites are to be retained. Clear commitments have also been made regarding the preservation of the jobs at the other sites. The split-up of Lufthansa Systems and formal launch of the new companies are due to take place in the first quarter of 2015. The completion of the Infrastructure sale is planned for March 31, 2015.
October 22, 2014 · 110 Views
Vector Aerospace Engine Services – Atlantic, (ES-A) has renewed its Network Services Agreement with Turboprop East, based in North Adams, Massachusetts, United States. ES-A will provide Turboprop East with comprehensive engine repair and overhaul support for the Pratt & Whitney Canada (P&WC) PT6A and JT15D series engines from its P&WC Distributor and Designated Overhaul Facility (DDOF) located in Summerside, Prince Edward Island, Canada.
ES-A signed an Engine Services Agreement with Aerway Leasing based in Waterford, Wisconsin, United States, at the NBAA Convention in Orlando, Florida. The services agreement calls for ES-A to provide Aerway Leasing, with engine repair and overhaul support for the Pratt & Whitney Canada (P&WC) PW100 series engines.
ES-A also renewed its Engine Service Agreement with Gander Aerospace Manufacturing/Evas Air based in Gander, Newfoundland, Canada. As per the terms of the exclusive agreement, ES-A provides Gander Aerospace Manufacturing/Evas Air with fixed-wing aircraft engine repair and overhaul support from its facility located in Summerside.
October 22, 2014 · 117 Views
In line with projections that China will be needing some 6,000 new airplanes by 2033, news has broken that permission has been given for the creation of five new airports across the country. Both the creation of these new airports and necessity for new aircraft comes partly from the increase in demand for domestic flight services, and partly through the country’s aim to give the economy a bit of a push during a sluggish time. It is no secret that China’s economy has slowed down considerably, though curiously it is not through a lack of money available for investment. It would appear to be a case that medium sized businesses – one of the key borrowers – are just not expanding their businesses in a time of uncertainty. It is, to a degree, a vicious circle.
However the central bank injected 500 billion yuan ($81 billion) in September into China’s five major state-owned banks, based on information provided by a senior banking executive. The move was made with the intention of channelling money into areas that the government deems important, of which airports would seem to fit, along with general transport infrastructure. The news was in fact not solely about airports but also involved three major rail projects receiving approval too. As for the five airports, these will include one each in the north western-provinces of Qinghai and Inner Mongolia, one each in the south-western provinces of Yunnan and Guizhou, and one in the north-eastern province of Jilin. All in all the cost for the development of the five airports and three railway systems is estimated at CNY150 billion yuan (USD$ 24.5 billion).
Environmentalists who are concerned about the growth of the world’s second largest economy and potential harm being done to the environment may be heartened with the fact that China’s Premier Li Keqiang recently guaranteed to implement major investment projects in information networks, water conservancy and environmental protection to support the economy. This aligns itself well with the fact that Boeing and Commercial Aircraft Corp. of China (COMAC) now estimate waste cooking oil, or ‘gutter oil’ as it is known, could be capable of providing 500 million gallons (1.8 billion liters) of aviation-grade fuel per annum. This would be capable of reducing carbon emissions by 50 to 80 percent compared to petroleum through its lifecycle and is expected to play an additional key role in supporting aviation’s growth while meeting environmental goals.
October 23, 2014 · 65 Views
In the first nine months of 2014, MTU Aero Engines AG’s revenues grew by 6% to €2,811.6m (1-9/2013: €2,659.6m). The group generated an operating profit of €270.9m (1-9/2013: €267.8m) and its EBIT margin came to 9.6% (1-9/2013: 10.1 %). Net income increased by 5% to €178.3m (1-9/2013: €169.1m). “The good nine-month results and the greater planning confidence for the remaining quarter allow us to reinstate the full-year revenue forecast of around €3,750m that we issued at the beginning of the year,” said Reiner Winkler, CEO of MTU Aero Engines AG. “Moreover, we expect to achieve a higher operating profit and net income than anticipated as yet. Adjusted EBIT will probably rise to around €380 million and net income to around €250m.” MTU had adjusted its revenue forecast slightly downward from €3,750m to €3,650m (2013: €3,574.1m) on the basis of the half-year figures. The outlook had included a stable adjusted EBIT of around €375m (2013: €373.1m) and an adjusted net income in the region of €245m (2013: €235.7m).
The increase in group revenues in the first nine months of 2014 is mainly attributable to strong growth in the commercial engine business, where revenues rose by 12% to €1,563.9m (1-9/2013: €1,402.9 million). The engines that accounted for the largest part of these revenues were the V2500, which powers the Airbus A320, the GP7000 for the Airbus A380, and the GEnx for Boeing’s 787 Dreamliner and 747-8. Revenues in the commercial maintenance business remained stable at €920.8m (1-9/2013: €911.8m). The main source of these revenues was the V2500 engine. “Our third-quarter revenues in the MRO segment were higher than ever before. This means that we have turned the corner and reversed the negative trend that affected revenues in this segment in the earlier part of the year,” added Winkler.
October 23, 2014 · 60 Views
Amentum, the Dublin based commercial aircraft leasing company, has renewed the leases of four E190s with KLM Cityhopper B.V. The leases were extended for four years. The aircraft (MSNs 19000250, 19000279, 19000322, 19000326) are owned by Global Aircraft Fund I. Amentum is the exclusive Investment & Divestment Advisor, Asset & Lease Manager and Remarketing Agent of Global Aircraft Fund I.
October 23, 2014 · 211 Views
IBA’s online aircraft database, JetData now features a new aircraft availability module. The data, sourced from IBA’s partnership with myairlease.com, enables JetData’s subscribers to keep abreast of aircraft supply onto the market. myairlease continuously monitors their available asset listings for currency and provides updates to JetData in parallel with their own database updates. Availability is a key value determinant to aircraft appraisal. Whether a particular aircraft type is in oversupply or scarce will cause its market value to deviate from its base value downwards or upwards respectively. JetData users can use the new module to source additional capacity for their operations or on behalf of their own industry partners, or to simply monitor any potential market volatility. Utilisation, availability date and contact details are provided, along with IBA’s records for specification and historical events for each aircraft under consideration.
October 23, 2014 · 93 Views
With a suite of new technologies onboard, the first Virgin Atlantic 787 Dreamliner will take to the skies on October 26th from London Heathrow to Boston. As one of the most efficient aircraft in its class, a key to its performance is its new technology and innovative design. Virgin Atlantic has teamed up with Panasonic and T-Mobile to offer all customers eXConnect KU Band wifi connectivity onboard its new 787 aircraft. Whether on a laptop, tablet or mobile phone, customers can connect their devices to the wireless onboard internet with just a few clicks and start surfing the web.
October 23, 2014 · 61 Views
Jet Aviation has signed an FBO management agreement with Executive Flight Support (EFS) effective January 1st, 2015. The new addition to Jet Aviation’s worldwide FBO network will be rebranded as Jet Aviation Bahamas. Managed by Jet Aviation as of 2015, EFS is the premier full-service FBO in the Bahamas, located at Lynden Pindling International Airport, the largest airport and the main international gateway into the country. EFS’s facility encompasses 305,000 ft² of ramp and a full-service FBO terminal building that includes onsite Bahamas Customs and Immigration available 24 hours, concierge service, computerized flight planning, pilot lounge, executive lounges, conference room, courtesy offices, on-site car rental and 20,000 ft² of hangar space.
October 23, 2014 · 110 Views
Executive Vice President and COO Flemming Jensen will leave SAS in May 2015 to assume the position of CEO for DSB A/S. Flemming Jensen has been with SAS since 1989 when he joined as pilot. Since 2008, he has held a number of leading positions within SAS, of which the last three years as Executive Vice President and COO. SAS has commenced the process to replace Flemming Jensen, who will continue as COO until May next year.
October 23, 2014 · 97 Views
Component Control reported that Quantum customers can now attach documents and images pertaining to a specific part listing on StockMarket.aero, the world’s largest open online aviation parts eMarketplace. Certifications, zoomed images, and multiple views can be attached to a specific part to bolster authentication and make the part more appealing to buyers.
October 23, 2014 · 96 Views
Southwest Airlines and the International Association of Machinists and Aerospace Workers (IAM), representing the carrier’s approximately 6,000 Customer Service Agents and Customer Support and Services Representatives, announced that the two parties have reached a tentative agreement. The tentative agreement is for a new four year contract and requires Membership ratification. The current contract became amendable in October 2012. In the upcoming weeks, the IAM membership will be given the full details of the agreement and have the opportunity to vote on ratification.
October 23, 2014 · 83 Views
Southwest Airlines reported third quarter net income, excluding special items, of $382m, compared to third quarter 2013 net income, excluding special items, of $241m. This represented a 61.8% increase from third quarter 2013, and exceeded the First Call consensus estimate of $.53 per diluted share. Third quarter net income of $329m, which included $53m (net) of unfavorable special items, compared to third quarter 2013 net income of $259m, which included $18m (net) of favorable special items. Third quarter operating income of $614m. Excluding special items, third quarter operating income of $649m.
October 23, 2014 · 81 Views
United Airlines reported third-quarter 2014 net income of $1.1bn, excluding $151m of special items, its highest-ever quarterly profit and an increase of 99% year-over-year. Including special items, UAL reported third-quarter 2014 net income of $924m. UAL ended the third quarter with $6.9bn in unrestricted liquidity.
October 23, 2014 · 119 Views
Etihad Airways selected SAP SE (SAP) as a strategic technology partner to deploy a range of key software solutions to deliver the latest best-in-class technology to the Etihad Aviation Group. The airline plans to deploy the enterprise resource planning application SAP ERP together with a range of cloud-based products across its vital business functions, including human resources, finance, procurement and supply management and business intelligence. At a signing ceremony in New York, President and Chief Executive Officer, Etihad Airways, James Hogan, and Bill McDermott, CEO and member of the Executive Board of SAP SE, said that the partnership was key to helping Etihad Airways sustain and support its growth, while further modernising and scaling up the airline’s business functions.
October 23, 2014 · 141 Views
Atlas Air Worldwide Holdings announced the placement of two incremental Boeing 747 freighters into ACMI service. The two aircraft, a 747-8F and a 747-400F, will be operated in Polar Air Cargo Worldwide’s express network under an ACMI arrangement for the benefit of DHL Express, the world’s leading international express shipping company, and Polar’s other customers. Operations are scheduled to begin on October 26th, 2014. When the new ACMI service begins, Polar’s express network will total twelve 747 freighters, consisting of five 747-8Fs and seven 747-400Fs, in ACMI on behalf of DHL and Polar’s other customers. Atlas also will continue to operate a fleet of Boeing 767 Freighters in CMI service for DHL, with 11 aircraft in operation by the end of January 2015.
October 23, 2014 · 73 Views
For the third quarter 2014, American Airlines Group reported a record GAAP net profit of $942m. This compares to a GAAP net profit of $289m in the third quarter 2013 for AMR Corporation prior to the merger. Third quarter 2014 net profit excluding net special charges was a record $1.2bn. This represents a 59% improvement over the combined non-GAAP net profit of $771m excluding net special charges for the same period in 2013. The Company’s third quarter 2014 pretax margin excluding net special charges was 11%.
October 23, 2014 · 117 Views
Airlines and pilots will both benefit from the Common Type Rating pilot training on the A350 XWB and A330 jetliners, further extending Airbus’ concept of flight operational commonality between its fly-by-wire aircraft families.The new regulatory approval means that pilots who are qualified and current on the A330 can already commence their preparations to take the A350 XWB’s controls by undergoing “differences training” only. Enabling a significant reduction of costs for airlines, the differences training does not necessitate the use of a ground-based full-flight-simulator, and allows a 65% reduction in pilot training time – to only eight days – versus a standard transition course. Additionally, it facilitates the creation of a pool of pilots who can fly both the A330 and A350 XWB in a single-fleet flying (SFF) concept for increased scheduling flexibility and mobility.
October 23, 2014 · 125 Views
Kunming Airlines, based at Changshui International Airport in the capital city of Yunnan province, has committed to purchase 10 737s, including four Next-Generation 737-700s and six 737 MAX airplanes. The commitment, valued at $897m at current list prices, is subject to the approval of the Chinese government and will be posted on Boeing’s Orders & Deliveries website once all contingencies are cleared.
October 23, 2014 · 161 Views
SF Airlines placed an order for an undisclosed number of 767-300ER passenger-to-freighter conversions (Boeing Converted Freighters). SF Airlines, a subsidiary of Shenzhen, China-based delivery services company SF Express, will accept its first redelivered 767 in the second half of 2015. The 767 Boeing Converted Freighter offers an intercontinental range capability well-suited to the mid-sized freighter market, and maximizes efficiency of operations and payload configuration. “SF Express aims to become China’s most respected and reliable international courier company,” said Li Sheng, President of SF Airlines. “The addition of both wide and narrow-body Boeing freighters to our fleet will help us to continue providing quality service and expanded service networks, so as to offer efficient and reliable express delivery solutions that serve all the needs of our customers.”
October 23, 2014 · 114 Views
Safran reported third-quarter 2014 adjusted revenue was €3,589m, up 6.8% on a reported basis, up 6.3% on an organic basis, compared to third quarter 2013. Aerospace Propulsion activities continue to benefit from services growth, notably civil aftermarket. Aircraft Equipment growth is principally driven by continuing OE momentum. Revenue declined slightly in Defence activities and grew for the Security activities. Third-quarter 2014 civil aftermarket was up 11.9% in USD terms, driven by a robust level of revenue in 2014, spare parts in particular, compared to a high comparison base in the year-ago quarter. The full-year 2014 adjusted revenue and adjusted EBIT outlook is confirmed.
In the third quarter 2014, Aerospace Propulsion recorded revenue of €1,944m, an increase of 9.8% compared to revenue in the year-ago period of €1,771m. On an organic basis, revenue was up 8.9%. Revenue growth was primarily driven by services (+15.9%). The civil aftermarket (measured in USD) increased 11.9% compared to the third quarter 2013. Sales of spare parts for CFM56 and GE90 engines contributed strongly to this momentum. Military aftermarket grew, as did helicopter support revenues notably with the contribution of the RTM322 programme. OE Propulsion revenue increased 3.7%. Sales from helicopter turbine deliveries were down, as in the first half. Civil aircraft OE grew due to slightly higher volume and favourable mix in both CFM56 and high thrust engine modules.
October 23, 2014 · 111 Views
Despite making a net profit of NOK373.8m ($57m) for the third quarter, Budget carrier Norwegian Air Shuttle’s figure was down 14% compared to the NOK435.9m ($66 million) reported for the same period in 2013. Additionally, the net loss for the nine months up to and including 30th September was NOK91.4m ($14m), considerably down on the profit of NOK515.5m posted for the same period a year ago.
Norwegian Air Shuttle was quick to explain the deficit and put it down to a number of reasons. Firstly there were costly wet leasing replacement aircraft being used because of technical problems with the Boeing 787 Dreamliner fleet. These problems, financially, extended to costs incurred for hotel bills and food and drink payments for severely delayed passengers. Once you add the fact that the Norwegian Krona had weakened as a currency to what Norwegian Air Shuttle described as “considerable” cost implications of delayed approval from the US Department of Transportation, and you begin to get a clearer picture of why this has not been a good time for the airline. The airline has indicated it is prepared to wait as long as is needed to obtain U.S. Department of Transportation (DOT) approval for its Ireland-based long-haul subsidiary airline, Norwegian Air International (NAI), to fly between Europe and the U.S.A., but the delay is proving very costly.
However it wasn’t all doom and gloom for the Norwegian airline as they indicated there had been “strong growth” in all European markets. This resulted in a load factor rise to almost 85%, in spite of a capacity increase of 36% in the third quarter. Third-quarter operating turnover was up 30% year-on-year to NOK6.34bn, though operating costs were also up 38% to NOK5.12bn and unit cost for this last quarter down 1% (4% excluding fuel). Operating revenue for the year to date was up 27% compared with a year ago to NOK15bn, though operating costs increased 44% to NOK13.4bn and unit cost down 2% (3% excluding fuel). Yield was down 11% for the quarter and 16% for the year-to-date. The number of passengers for the quarter was up 17% to just over 7 million compared to just over six million the previous year. For the year to the end of September the passenger numbers were up 19% to 18.33 million compared to last year.