Wednesday, January 21, 2015
AviTrader Daily Aviation News Alert
This is an overview of all articles linked within the selected daily newsletter.
Please scroll down to read the articles…
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 20, 2015 · 297 Views
EOS, the global technology and quality leader for high-end Additive Manufacturing (AM) solutions, and MTU Aero Engines, Germany’s leading engine manufacturer, are closely cooperating with view to quality assurance for metal engine components using Additive Manufacturing. The two companies have now signed a framework agreement for the joint strategic development of their technology. The first result of these joint endeavours is the optical tomography (OT) developed by MTU, an ideal and powerful complement to the modular EOS monitoring portfolio: in addition to several sensors that monitor the general system status, the camera-based OT technology controls the exposure process and melting characteristics of the material at all times, to ensure the optimum coating and exposure quality. Dr. Adrian Keppler, head of sales and marketing (CMO) at EOS stresses: “MTU and EOS have been working intensively for several years, and this collaboration is now about to develop into an even closer, partner-based technological cooperation, centred on the above quality assurance tool. The OT solution enables us to perform an even more holistic quality control of the metal additive manufacturing process – layer by layer and part by part. A very large proportion of the quality control process that previously took place downstream can now be performed during the manufacturing process, with a considerable saving in quality assurance costs. This also allows us to satisfy a central customer requirement in the area of serial production.”
January 20, 2015 · 273 Views
Monarch Aircraft Engineering released that its 110,000 ft² state-of-the-art aircraft maintenance facility at Birmingham Airport is now Boeing GoldCare approved after completing its supplier audit. This latest achievement means that all Monarch Aircraft Engineering base maintenance facilities in the UK (Birmingham, Manchester and Luton) are Boeing GoldCare approved along with its line maintenance facility at Gatwick. In partnership with Boeing, Monarch Aircraft Engineering will provide base maintenance services to support Boeing 787 Dreamliner airplanes as part of the Boeing GoldCare programme.
January 20, 2015 · 505 Views
Nordic Aviation Capital (NAC) announced the appointment of Rod Sheridan as Vice Chairman of the Board of Directors. Rod brings nearly three decades of aviation experience to NAC as a long-time executive of Bombardier Aerospace (where he was most recently Vice President of Sales and Asset Management) and its predecessor companies de Havilland and Boeing Canada. In the 20 years supporting Bombardier Regional Aircraft’s trading group he concluded over 1,600 acquisitions, sales and leases for the manufacturer and its financiers. In tackling the secondary market for the 50-seat CRJ fleets, Rod and the team team facilitated a number of ventures designed to develop new operators outside North America and Europe. In addition to managing the Asset Management team, for the past six years he has led business development in Russia and the CIS for Bombardier and Lessor Sales. Prior to announcing his retirement from Bombardier in October of 2014, Rod directed the sale of over 70 Bombardier C Series aircraft to operating lessors.
EMRISE receives US$8.4m order for electronic device subsystems for In-Flight Entertainment and Connectivity
January 20, 2015 · 70 Views
EMRISE CORPORATION, a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, has received an US$8.4m production order for electronic device subsystems for In-Flight Entertainment and Connectivity (IFE&C) systems to be installed in commercial aircraft. The production order, which is for an existing, established product, is expected to begin shipping in the fourth quarter of 2015 with shipments expected to be completed by the fourth quarter of 2017. EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said, “We believe the order is not only indicative of the strength of our IFE&C business, but is another example of the continued expansion of the global IFE&C market opportunity for multi-year build-out programs for commercial airlines.”
January 20, 2015 · 77 Views
The strategy for the new Alitalia was unveiled on January 20th, with an unequivocal commitment by the new executive team and strategic investors to reinvent the airline. Alitalia will introduce new routes, new product and service standards, a new cost management strategy and new branding, as the foundations to build a premium global airline representing the best of Italy. The new Alitalia commenced operations on January 1st, 2015, following the completion of equity investments by Etihad Airways and Alitalia’s existing shareholders. The new company’s Board meeting on January 19th ratified the business strategy, which was outlined by Luca di Montezemolo, Chairman of Alitalia, Silvano Cassano, Chief Executive Officer of Alitalia, and James Hogan, President and Chief Executive Officer of Etihad Aviation Group and Vice Chairman of Alitalia.
Luca di Montezemolo said: “The energies, passion and expertise I have experienced at Alitalia in recent weeks do not leave any doubt that the airline we’re unveiling today will become once again a premium Italian airline recognised worldwide. This is why I believe the people in Alitalia are a pillar of the history we’re about to write. “Our priority is to put the customer at the centre of everything we do. And to do that, we will change many things, starting with the way we work. We need to work as one united team to achieve this great common goal. “The revitalised Alitalia we envision and have started building, will be an asset to this country, and a driver to support the growth of our tourism and our business.” James Hogan said Alitalia’s future will rely on major change throughout the organisation. “In a market still beset by the continuing Eurozone crisis, anything other than rapid, decisive change is simply not an option. “This is the right strategy, with the right management team to lead it. “But there should be no doubts at all: we have made a commercial investment that must deliver a commercial return. “We’ve invested in the new Alitalia because we believe it can flourish again. It will only succeed if there is 100 per cent support from everyone. The coming months and next few years will not be easy, but if everyone pulls together as one team, Alitalia can grow again.” Mr Hogan said that Alitalia’s major investors had set a clear deadline for the airline to deliver profitability by 2017.
January 20, 2015 · 62 Views
Summit Air announced the purchase of a second AVRO RJ85 jet to meet market demand for remote destination crew movements and ACMI (aircraft, crew maintenance and insurance) contracts. Summit Air is part of the Ledcor Group of Companies and operates a fleet of helicopters and fixed wing aircraft throughout Alberta, British Columbia, Northwest and Yukon Territories.
January 20, 2015 · 73 Views
Pratt & Whitney and Kawasaki Heavy Industries met to commemorate the signing of a risk and revenue-sharing collaboration agreement for KHI to provide key hardware modules for Pratt & Whitney’s PurePower Geared Turbofan (GTF) engines. Pratt & Whitney currently has 10 worldwide GTF collaboration partners, many of which work across multiple GTF engine variants to be installed on various aircraft platforms for Pratt & Whitney customers. These aircraft programs are directed by Mitsubishi Aircraft Corporation, Bombardier Aerospace, Airbus, Irkut and Embraer. Pursuant to the collaboration agreements, partners will provide hardware modules and assembly and test services with an expected value in excess of US$49bn over the life of the programs. An example of a successful partnership is Mitsubishi Heavy Industries Aero Engines, which performs engine assembly and test on the PW1200G engine for the MRJ as well as MTU Aero Engines AG (MTU), which performs assembly and test on some of the PW1100G-JM engines for the Airbus A320neo. In addition to the four aforementioned collaboration partners, Pratt & Whitney has agreements with Japanese Aero Engines Corporation, Industria Turbo Propulsores of Spain, Mitsubishi Corporation, Singapore Airlines Engineering Company, IHI Corporation and GE Avio. Now that Pratt & Whitney has completed new collaboration partner agreements, any further activity will be limited to bringing existing hardware sources into existing or new collaboration agreements.
January 20, 2015 · 254 Views
HEICO Corporation reported that its Flight Support Group completed the acquisition of 80% of the equity of Aeroworks International. Financial terms were not disclosed, but HEICO stated that it expects the acquisition to be accretive to its earnings within the first year after the closing. Aeroworks is a manufacturer of both composite and metal parts used primarily in aircraft interior applications, including seating, galleys, lavatories, doors, and overhead bins. Its products are sold mostly to commercial aircraft interior primes for use in commercial aircraft retrofit, interior replacement and new aircraft production. Founded in 2000, Aeroworks is headquartered in The Netherlands with its sales, administrative, and manufacturing operations; Aeroworks also maintains significant additional production facilities in Thailand and Laos. Aeroworks’ active leadership team will remain in place and HEICO does not anticipate any changes with respect to Aeroworks’ team members or customer relationships. Its significant international manufacturing footprint marks an important expansion of HEICO’s production flexibility. Including Aeroworks, HEICO subsidiaries now operate production or engineering facilities in 8 countries in North America, Europe and Asia.
January 20, 2015 · 235 Views
Airborne Maintenance & Engineering Services (AMES) completed its first Split-Scimitar Winglet installation for Sunwing Airlines on a B737-800 aircraft. Sunwing Airlines inducted the aircraft into AMES’ Wilmington facility in mid-December for the Aviation Partners Boeing (APB) modification and other maintenance bridging inspections. The work was finished on time and the aircraft redelivered prior to year-end.
Novaria Group acquires assets of storied manufacturer of aircraft and industrial fasteners, John Hassall
January 20, 2015 · 257 Views
Fort Worth-based Novaria Group announced the acquisition of substantially all the assets of John Hassall, a provider of aircraft engine fasteners, bolts, blade locks and other flight critical hardware, located in Long Island, N.Y. The company also manufactures a diverse set of products for use in select automotive and industrial applications. The company holds a variety of key customer quality approvals as well as current AS9100C and Nadcap certifications. Novaria has established a new entity, John Hassall LLC, which operates substantially all of the assets of John Hassall, Inc., services existing and legacy customers and will continue doing business as John Hassall. Novaria is taking immediate steps to improve operations and expand the capabilities of the business. John Hassall specializes in the cold heading, hot forming, thread rolling, heat treatment, and metallurgical testing of complex and specialty fasteners used in the hot section of aircraft engines. The company’s roots date back to 1850 when it obtained the first U.S. patent for an automated fastener manufacturing machine, currently housed in the Smithsonian museum.
January 20, 2015 · 510 Views
BAE Systems has been awarded a £112m contract by the UK’s Ministry of Defence (MOD) to extend the Typhoon Availability Service (TAS) for the in-service support of the Royal Air Force’s (RAF) Typhoon fleet by 15 months. The Company will continue to work alongside the RAF in meeting Typhoon’s operational requirements until early 2016. The extension will help to sustain around 650 jobs for BAE Systems’ personnel based at RAF Coningsby and RAF Lossiemouth supporting the Typhoon fleet. Under the contract, BAE Systems is responsible for delivering Typhoon aircrew and ground crew training, maintenance of the aircraft, along with providing technical support and managing spares, repairs and logistics. Nigel Davey, BAE Systems Director for Military Air Support said: “This agreement is a continuation of a strong partnership with the MOD and RAF to support its Typhoon fleet.
January 20, 2015 · 116 Views
Rolls-Royce celebrated a milestone at the company’s Seletar Campus with the unveiling of a Trent 1000 engine, the first to be made in Singapore for Singapore’s very own long-haul budget carrier, Scoot. The Trent 1000, which is fully assembled and tested by a team of 80, will provide power to Scoot’s new fleet of 20 Boeing 787 Dreamliner aircraft.
January 20, 2015 · 191 Views
It was only eighteen months ago aviation news was reporting that Airbus and Boeing airframes were being retired after only 15 years in service. The reason – high fuel prices. This meant that demand for air travel remained relatively static and few expanded routes or new airlines were appearing. At the time, the UK’s Air Service International, based at Kembal, had become the world’s largest recycler of retired airplanes and business was booming.
A year later and oil prices began to drop to the point where since June 2014 they have fallen by 50%. This has meant that the thirstier older planes can still be run profitably while helping airlines cope with the increased demand owing to such competitive prices for seats. Older planes, such as Airbus A340s, Boeing 747s and 757s, are once again being leased out by AerCap, the world’s largest independent leasing company, extending their life by what is anticipated to be three or four years. “We are seeing a big pick-up in demand for aircraft we thought we would scrap,” Aengus Kelly, chief executive of AerCap, revealed at the Airline Economics conference in Dublin.
“Unscheduled or repossessed aircraft are not coming in as frequently as when oil prices were sky high,” said Mark Gregory, Europe’s leading aircraft dismantling operation founder. However the company is still recycling aircraft scheduled to be taken out of service due to their age or upcoming heavy maintenance deadlines.
Considerable demand has been put on major manufacturers like Airbus and Boeing to produce their next generation of more economic aircraft as the current drop in oil prices is seen as only temporary. Planning for the future is still very prevalent with regard to future plane orders, so while some airlines are waiting for delivery, they are bringing older planes out of mothballing as a pro-tem measure.
The 50% drop in oil prices has additionally made it easier for airlines that cannot afford the cost of a new fleet, or those facing lengthy waits for new jets, to turn to vintage aircraft. “At the new price of fuel, (the A340) does become a great aircraft to those who are looking for interim lift,” Bill Cumberlidge, Executive Director of KV Aviation, an investor and Manager of aviation lease transactions, made clear.
January 20, 2015 · 312 Views
Delta’s pre-tax income for the December 2014 quarter was US$1.0bn, excluding special items, an increase of US$474m over the December 2013 quarter on a similar basis. Delta’s net income for the December 2014 quarter was US$649m and its operating margin was 12.6%, excluding special items. For the full year 2014, Delta’s pre-tax income, excluding special items, was US$4.5bn, a US$1.9bn increase over 2013. Delta’s net income for the year was US$2.8bn with an operating margin of 13.1%, excluding special items. On a GAAP basis including special items, Delta’s December quarter pre-tax loss was US$1.1bn, operating margin was -8.6% and net loss was US$712m. On a GAAP basis including special items, Delta’s 2014 pre-tax income was US$1.1bn, operating margin was 5.5% and net income was US$659m.