Thursday, January 15, 2015
AviTrader Daily Aviation News Alert
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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.
January 14, 2015 · 70 Views
Embraer delivered 30 commercial and 52 business jets, 38 light and 14 large jets, during the fourth quarter of 2014 (4Q14), thus closing out the year with 92 airplanes delivered to the commercial airline market and 116 to the executive aviation market, that is, 92 light and 24 large jets. On December 31, the firm order backlog stood at US$ 20.9bn.
January 14, 2015 · 448 Views
Stratos announced the addition of senior airline fleet executive Jason Bewley to its team. Jason has been appointed as Commercial Director, specialising in airline marketing and commercial strategy and is based in Australia. Most recently, Jason held the role of Fleet Manager at Virgin Australia where he managed a US$4bn fleet, responsible for fleet strategy, transaction management and aircraft financing. Prior to this Jason was Senior Leasing Manager at TUI Travel PLC, where he was responsible for aviation financing requirements as well as the order book of A330 and 737 aircraft.
January 14, 2015 · 243 Views
JorAMCo has signed a long-term contract with flydubai to provide the Dubai-based carrier with airframe maintenance solutions for its Next-Generation Boeing 737-800 aircraft that are due for maintenance services during 2015 to 2017. The maintenance service to be provided by JorAMCo includes C checks, EIS (Entry Into Service) and lease hand backs for flydubai’s entire fleet. This agreement comes as an extension to the already existing relationship that started in 2013. flydubai currently serves 87 destinations across 46 countries and has a modern fleet of 43 Next-Generation Boeing 737-800 aircraft.
January 14, 2015 · 262 Views
Iberia Maintenance has completed the overhaul and bench testing of its first V2500 engine in its Engine Workshop facilities after it was licensed last year to repair them. The turbo-fan engine belongs to Vueling, the low-cost Barcelona-based carrier which, like Iberia and British Airways, is part of the International Airlines Group (IAG). Another seven V2500 engines are currently undergoing inspection and repair in Iberia Maintenance’ facilities. The V2500 powers the A-320 family. Some 5,700 V2500s are now in service and another 1,800 will be operating by the end of 2017. Iberia’s Maintenance Engine Workshop is one of the four facilities in Europe authorised to perform complete overhauls of this engine.
January 14, 2015 · 313 Views
AIR FRANCE KLM and GOL Linhas Aéreas Inteligentes signed an exclusive, long-term strategic partnership agreement to strengthen the commercial cooperation between the two groups. The agreement also covered the development of cooperation between the two groups in the field of MRO. Under the terms of the partnership, the first non-exclusive MRO agreement was signed in September 2014 with GOL, from which one of its Boeing 737NGs was sent to KLM UK Engineering for a lease return check prior to its withdrawal from the fleet. The overhaul of GOL’s aircraft, as specified in each work scope of the Agreement, prior to its return to the leasing company is being handled as efficiently as possible by KLM UK Engineering. This is possible due to KLM UK Engineering being able to rely on the strength of its engineering network and its various maintenance centres offering specialized, competitive services in terms of both costs and performance. As a result, KLM UK Engineering, a Group subsidiary that offers expert MRO services for regional and narrow-body aircraft, based in Norwich UK, has delivered the first end of lease maintenance check on the GOL 737NG.
January 14, 2015 · 337 Views
AerGen Leasing is a new aircraft leasing company focused on providing leasing and asset management solutions for owners and operators of mid-life and late-life aircraft and engines. AerGen Management Services is led by Chief Executive Officer Robert J. Genise, a long-time industry executive who previously served as CEO of both DAE Capital and Boullion Aviation Services. Mr. Genise has assembled a highly experienced management team who bring longstanding relationships and technical expertise in the global aviation industry. AerGen’s aircraft leasing activities will be further supported by its recent acquisition of Avioserv, an established aircraft engine parts management company based in San Diego. Avioserv specializes in the sale, lease and trading of engine parts, engine components and whole engines to airlines, repair facilities and parts distributors. AerGen has raised an initial US$200m of committed equity capital from a group of financial and strategic investors led by Greenbriar Equity Group.
January 14, 2015 · 102 Views
Boeing and GOL Linhas Aereas Inteligentes announced an agreement to implement the Boeing Fuel Dashboard solution across GOL’s Next-Generation 737 fleet on January 14th, at the MRO Latin America conference. The Boeing analytics software solution will provide GOL operations teams with greater visibility on current fuel-use trends across the fleet and insights into opportunities for operational improvements and cost savings in fuel consumption. The Boeing Fuel Dashboard is part of Boeing’s fuel-efficiency solutions suite. The application provides aircraft operators with a comprehensive total fleet view of operational fuel consumption. Airlines, business aviation operators, and military organizations can use Fuel Dashboard’s intelligent decision aids to gain insight into current fuel usage through all phases of flight. This visibility enables better decision-making to reduce fuel consumption, costs, and emissions.
January 14, 2015 · 467 Views
Mitsubishi Aircraft Corporation started full-scale testing of the Mitsubishi Regional Jet (MRJ) toward its first flight scheduled in the second quarter of this year. Mitsubishi Aircraft performed the first engine run for the starboard side engine of MRJ’s first flight test aircraft at the Nagoya Airport (Nishikasugai-gun, Aichi Prefecture) on January 13th, 2015. The first engine run verified the total operations of the aircraft’s various systems including hydraulic, fuel, air conditioning, electric systems and power system such as engines. The company also performed the wing up-bending test on the static strength test aircraft at the strength test station adjacent to Komaki South Plant of MHI’s Nagoya Aerospace Systems Works (Nishikasugai-gun, Aichi Prefecture) on December 25th, 2014. The static strength test is one of the airframe tests to inspect that the aircraft meets safety standards in strength. During the testing, the maximum load that the aircraft is expected to experience while flying was applied to the wing of the static strength test aircraft, which was calculated from simulation of all flight conditions. The wing up-bending test produced anticipated results. Mitsubishi Aircraft remains firmly committed to the success of the first flight with an on-track progress of the upcoming tests, such as functional tests and engineering tests.
Asian LCCs come under increased scrutiny after permit revelations regarding Indonesia AirAsia flight QZ8501
January 14, 2015 · 110 Views
As soon as it was discovered there were discrepancies over the rights for Indonesia AirAsia to fly between Surabaya and Singapore, it comes as no surprise that many Asian airlines are having their permits to fly routes heavily scrutinized. At the time, Indonesia AirAsia had permits to fly the route in question on four days of the week, but Sunday was not one of them. Their permit to fly that route has subsequently been permanently frozen.
However scrutiny of other airlines operating procedures has revealed some alarming figures regarding the breach of flight permits, the consequences of which will see regional authorities clamp down even further on the number of Southeast Asian airline operators. The Indonesian Minister of Transport, Ignasius Jonan, named six specific airlines under its jurisdiction, all of which had “committed violations” relating to their permits to fly specific routes. These airlines include Garuda Indonesia, Susi Air, Lion Air, TransNusa, Indonesia AirAsia and Wings Air (a Lion Air subsidiary). Apparently Lion Air was the biggest culprit with 35 route violations and another 18 violations via its Wings Air offshoot.
The Minister stated that all the airlines had subsequently been barred from flying to any destinations they had serviced without authorized permits. “They committed violations of their permits. They didn’t have the flight permits for 61 routes and they cannot now fly on the routes [they violated].” Jonan also confirmed that at least 10 government officials working in the air transport administration would face disciplinary action based on the results of recent investigations.