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Saturday, January 10, 2015

AviTrader Daily Aviation News Alert

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Emirates reject Delta’s apology regarding Anderson’s 9/11 comments

February 20, 2015 · 542 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.


Snecma and HAL to create joint venture and build a new production facility in India

February 20, 2015 · 640 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.


Design flaws led to 787 battery fire

December 2, 2014 · 195 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.


Rolls-Royce forced to axe 2,600 jobs after second profit warning this year

November 5, 2014 · 162 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.


Air France-KLM selects GEnx engines for Boeing 787 fleet

March 25, 2014 · 111 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.


ILFC closes $1.5bn senior secured term loan

March 7, 2014 · 78 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.


Airbus Commercial reports another year of financial improvement

February 26, 2014 · 78 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).


Boeing Commercial Airplanes reports full year revenue of $53bn

January 29, 2014 · 74 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.


A350 XWB in Bolivia for high altitude testing

January 9, 2014 · 65 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.


Firefly welcomes first ATR 72-600

July 5, 2013 · 64 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.


GE’s Passport engine begins first full engine test

June 26, 2013 · 40 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.


Rolls-Royce wins order from CIT to power 23 aircraft

May 22, 2013 · 53 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.


Borajet Airlines signs GE OnPoint Solution and TRUEngine agreements for CF34 Engines

January 9, 2015 · 300 Views

Borajet Airlines signed a five-year OnPoint solution agreement for the maintenance, repair and overhaul of the airline’s CF34-10E engines that power its five EMBRAER E190 aircraft. The agreement is valued at about more than US$30m over the life of the agreement. Along with the OnPoint solution agreement, GE awarded Borajet Airlines its TRUEngine designation for its CF34-10E engine fleet. “Borajet Airlines was the first to operate CF34-10E-powered EMBRAER E190 aircraft in Turkey, so it is fitting the airline is the first CF34-10E OnPoint solution agreement customer and the first airline in Turkey to be awarded TRUEngine status for its CF34-10E fleet,” said Kevin McAllister, president and CEO of GE Aviation’s Services organization.


Mitsubishi Aircraft to relocate headquarters

January 9, 2015 · 114 Views

Mitsubishi Aircraft Corporation has relocated its headquarters from the current office in Minato-ku, Nagoya-shi, Aichi Prefecture to the terminal building of the Nagoya Airport located in Nishikasugai-gun, Aichi Prefecture, to better prepare for flight tests and mass production scheduled in the near future. The final assembly of the MRJ, as well as its ground tests and flight tests are scheduled to take place at the Nagoya Airport and Komaki South Plant of Mitsubishi Heavy Industries’ (MHI) Nagoya Aerospace Systems Works adjacent there. The HQ relocation will achieve more efficient business operation. With the relocation, Mitsubishi Aircraft will continue to dedicate its company-wide efforts for further MRJ sales as well as the success of the MRJ program.


Reorganization of RUAG Aerostructures’ Emmen site

January 9, 2015 · 166 Views

The RUAG Aerostructures division’s Emmen site is being strategically realigned and adapted to meet current and future market conditions. In addition to various modifications to processes, some HR measures are also necessary. The employee representatives have been notified of the planned measures. The employees concerned will be informed about their situation personally by the end of January. The focus of the reorganization is to secure the site in the long term through a healthy, sustainable cost structure. The anticipated fall in sales due to expiring orders and the new strategic focus on civil aviation programmes require us to concentrate in future on our core competencies of machining, sheet metal processing, surface treatment and assembly. Following intense discussions with the other divisions and the employee representatives, some employees have been offered alternative positions within RUAG. Despite the internal transfers and a restrictive hiring policy, the necessary reorganization will result in 15-20 terminations of employment by the employer for business-related reasons. This strategic realignment will further strengthen the core competencies at the Emmen site to become more competitive on an international market. Existing and new orders being carried out in Emmen on behalf of the RUAG Aerostructures Airbus programmes in Oberpfaffenhofen will ensure the basic workload for the restructured Emmen site over the next few years. The measures initiated will enable the RUAG Aerostructures division’s Emmen site to operate competitively and acquire new orders.


Dragon Aviation Leasing takes delivery of four Boeing 737-800

January 9, 2015 · 220 Views

Dragon Aviation Leasing took delivery of four Boeing 737-800 in Seattle. These four aircraft are the first aircraft of the purchase order signed with Boeing in 2013. The aircraft are leased to China Eastern and co-leased to China United Airlines and are the first four of eight aircraft to be leased to China Eastern. The purchase of the Aircraft was funded with financing organized by, in chronological order, 1) DVB Bank SE, Landesbank Hessen-Thüringen Girozentrale and CTBC Bank Co., Ltd.; 2) Natixis; 3) Norddeutsche Landesbank Girozentrale; 4) Deutsche Bank AG.


Turkish Airlines signs GE OnPoint Solution agreement for CF6-80E engines

January 9, 2015 · 466 Views

Turkish Airlines signed a five-year OnPoint solution agreement with GE Aviation for the maintenance, repair and overhaul of the airline’s CF6-80E engines that power three Airbus A330-200 aircraft. “We signed this service agreement with GE to ensure our CF6-80E engines are maintained to the OEM standards and remain in top operating condition,” said Dr. Temel Kotil, president and chief operating executive, Turkish Airlines.


STS Component Solutions acquires Air-Pro Hose, a subsidiary of Aero Maintenance Group

January 9, 2015 · 531 Views

STS Component Solutions, a division of STS Aviation Group, has acquired the assets and business relationships of Air-Pro Hose, formally of AeroMaintenence Group, which is an Air France/KLM company located in Medley, Florida. The newly acquired business is legally named STS Distribution Solutions Inc. and will be operating as STS Air-Pro. Air-Pro is a leading distributor for Titeflex Aerospace and is globally recognized as a frontrunner in the manufacturing and distribution of flexible, rigid and flex-rigid hose assemblies with aircraft, turbine engine and space applications. “Air-Pro is a widely recognized global leader in the distribution and manufacture of high quality aerospace hoses. This acquisition provides us an excellent opportunity to further strengthen our current OEM Distribution Product offering while adding manufacturing capability,” states Tom Covella, Group President of STS Component Solutions. “The Air-Pro name has been a well-known brand for more than 40 years and it is linked to high-end, upper-echelon hose distribution and production. I am excited to integrate and incorporate the STS business model into the organization and take this business to new heights.” All key members of Air-Pro Hoses’ current sales and production team will remain in place and will now be led by Luis Garcia, Site Director for STS Distribution Solutions. The Air-Pro production facility will stay at its current location in Medley, Florida, while the administration and back-office support for STS Air-Pro will be located in Palm City, Florida. The acquisition of the Air-Pro Hose business is consistent with STS Component Solutions’ strategic direction toward expanding its portfolio of niche-based products and services within the aviation and aeroderivative markets.


Royal Air Maroc receives first GEnx-powered Boeing 787 and signs GE OnPoint solution agreement

January 9, 2015 · 332 Views

Royal Air Maroc, the largest airline in Morocco, is celebrating the delivery of its first of five GEnx-powered Boeing 787 Dreamliner and selected a 10-year OnPoint solution agreement with GE Aviation for the maintenance, repair and overhaul of its GEnx engine fleet.


IATA reports that weaker economies are affecting cross-border air travel

January 9, 2015 · 273 Views

It is generally known that the Russian economy is suffering from a substantial drop in the price of crude oil and consequently their airlines are struggling with a loss in ticket sales. However while the Western world seems to be coming out of a longer than estimated recession, other economies, particularly in Africa and Asia, are failing to benefit from the advantages of falling oil prices. In all these regions cross border travel is not anticipated to flourish as it is in the Western economy region, including the UK and USA. IATA represents approximately 250 airlines, 84% of all international and national air traffic, and predicts that globally and combined, airline profits should be at their highest for the last five years. While cross border travel increased by 5.8% in November 2014, this figure was lower than the general 6% increase in passenger numbers thanks to an upturn in internal flight numbers within China. “While lower oil prices should be positive for economic activity, softening business confidence is having a dampening effect on international travel,” General Tony Tyler, IATA Director has stated. While growth in cross-border travel stabilized after August, strong internal flight demand in countries such as China and India has not been reflected in demand for international travel for these countries’ carriers, IATA said. The ‘Russian effect’ of lower oil prices has also hit November figures for African carriers, which watched the demand for international travel fall 2.5%. IATA indicated that the lack of demand was directly related to weakening economies in the region, and particularly Nigeria, whose economy relies heavily on oil revenue.