Wednesday, February 18, 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.
February 17, 2015 · 280 Views
Turkish Technic and Citilink have signed an Airbus A320 component support contract. The signing ceremony was held in MRO Middle East and included the participation of Citilink CEO, M. Arif Wibowo Albert Burhan, and Turkish Technic CEO, Ahmet Karaman. The contract comprises component supply and repair on part number basis. Components will be supplied from the Istanbul/Turkey main bases and Turkish Technic pooling stations in the Middle East, as well as Jakarta’s main base. All repair and overhaul work of the components will be done at the Turkish Technic sites in Istanbul/Turkey. The contract also aims business development with GMF Aero Asia, as a vendor and component capability development for GMF, to support Citilink – Turkish Technic contract. Turkish, an association of Turkish Airlines group companies, is the leading maintenance center in its region, providing technical services for airframe, engine, APU and components for a wide range of airlines from Europe, Middle East, Asia, CIS and Northern Africa at its bases in Istanbul, with a highly qualified and well-trained workforce of over 5000 personnel, together with Turkish HABOM Inc.; a Turkish Airlines group MRO company.
February 17, 2015 · 171 Views
China Eastern Airlines has selected Ameco Beijing for cabin modification of its Boeing 767 fleet. This 767 fleet belongs to Shanghai Airlines, a wholly owned subsidiary of China Eastern. The carrier transferred a 767 to Beijing-based Ameco for cabin modification in January, and the further cabin modifications on other 767s will be scheduled from April to June. The deal covers cabin refurbishment and business class modification, and the latter one is designed by Ameco including engineering design, airworthiness certificate and interior material package manufacture. Ameco Beijing is well experienced in providing modifications on Boeing 737, 747, 767, 777 and Airbus A330, A340 and A380 with a portfolio including the cabin, system, winglet and wing rib.
February 17, 2015 · 178 Views
Acting on behalf of Largus Aviation AB of Sweden, Skyworld Aviation has arranged the sale of a Fokker 50, serial number 20194, to MayAir of Mexico. The aircraft, now registered as XA-UUU, arrived in Cancύn at the end of January. MayAir is part of Cancύn Travel Concepts, serving the Yukatán peninsula in South Eastern Mexico with regional flights from Cancύn. One of the main routes will be to the popular tourist destination Cozumel, one of the best scuba diving destinations in the world. Skyworld Aviation is a UK-based aircraft marketing organization, specializing in the regional sector. They offer consultancy, marketing and asset management services to a large client base worldwide. To date they have concluded nearly 500 aircraft-related transactions for over 160 clients to a value of approximately $850 million.
February 17, 2015 · 163 Views
Ducommun has been awarded its first direct contract from Airbus for the A350 XWB wide-body aircraft. Ducommun will provide titanium components for titanium assemblies that will be installed on the aft fuselage section of the jet. The components are already in production at Ducommun’s Coxsackie, N.Y. operations center, which specializes in forming technology for shaping titanium, steel and other hard metals for challenging aerospace requirements. “This new contract establishes the baseline for Ducommun to continue expanding its support of Airbus in North America,” said Anthony J. Reardon, chairman and chief executive officer. “We are focused on growing our relationship with this key original equipment manufacturer by providing value-added structural solutions for the innovative Airbus technology being implemented to make aircraft stronger, lighter, and more energy efficient. We already support the A350 XWB through an Airbus subcontract, and supply structural components for A320 and A330 aircraft, as well as aluminum fuselage skins for the A321.”
February 17, 2015 · 127 Views
Air Canada has been advised by UNITE, the union representing the airline’s U.K.-based employees that its members have ratified a new collective agreement reached on January 30th, 2015. The new agreement is in effect until December 31st, 2019. UNITE represents approximately 200 Air Canada concierge service, cargo and clerical staff based in the United Kingdom. This agreement with UNITE follows on the conclusion in October 2014 of a new agreement with Air Canada’s pilots on collective agreement terms for ten years. Earlier in February, Air Canada also reached a tentative collective agreement with the International Brotherhood of Teamsters (IBT) representing its U.S. workforce.
February 17, 2015 · 148 Views
JBT Corporation has been awarded an engineering contract for over US$6m from the U.S. Navy for mobile power equipment. The contract is for engineering and prototype design work for a new-generation mobile shipboard power generator equipment for Navy and Marine Corps aircraft to be based on aircraft carriers and amphibious assault ships. In addition to being efficient, economical and environmentally friendly, the Navy’s specifications require JBT to meet military standards for equipment built to withstand the effects of shipboard shock and vibration, temperature extremes, humidity and salt spray, and electro-magnetic interference (EMI). This contract order is a first phase of a larger potential multi-year equipment contract. The order was received in the first quarter of 2015, with delivery on the project expected to be initiated in 2016.
February 17, 2015 · 172 Views
Pratt & Whitney Canada (P&WC) has received Transport Canada type certification for its PurePower PW814GA and PW815GA engines, which will power the new Gulfstream G500 (range of 5,000 nautical miles) and G600 (range of 6,200 nautical miles) business jets respectively. Certification of these two engine models follows Gulfstream’s recent unveiling of its new G500 and G600 business jets and the news that P&WC’s PurePower PW800 engines were selected to power these next-generation long-range and ultra-long-range aircraft. In addition to the engines themselves, P&WC is providing Gulfstream with the Integrated Power Plant System (IPPS), which comprises the engine, nacelle, and thrust reverser systems. During rigorous endurance testing, simulating various aircraft missions, the PW800 engine has achieved more than 3,300 hours of evaluation. This includes over 350 flight hours on P&WC’s advanced Boeing 747SP flying test bed aircraft. Additionally, the PurePower PW800 engine’s advanced common core technology – leveraged in six PurePower engine applications – has amassed 15,000 testing hours in total.
February 17, 2015 · 210 Views
Bombardier delivered a new Global 6000 aircraft to Formula 1 champion, Niki Lauda, at the aircraft manufacturer’s Global Completion Centre, in Dorval, Canada. The company further announced that Mr. Lauda will be a spokesperson for Bombardier Business Aircraft. The partnership between Bombardier and Mr. Lauda will see him fly his new Global 6000 aircraft to Grand Prix races around the world with appearances at Bombardier Business Aircraft events throughout the 2015 Formula 1 season. Three-time Formula 1 World Champion Niki Lauda has a long history in aviation. He was the founder of Lauda Air in 1979, and in 2003, he founded NIKI Luftfahrt GmbH, a low-cost airline based in Vienna. The Global 6000 jet is the latest in a series of Bombardier business aircraft that Mr. Lauda has owned and piloted during his career as an aviator. Until recently he operated a Global 5000 and Challenger 300 jet as his private aircraft, which he frequently used to travel to Formula 1 races around the world from his home base in Austria.
February 17, 2015 · 230 Views
Wamos Air, a Spanish charter airline, and Lufthansa Technik AG, have extended their existing cooperation. Since 2003 Lufthansa Technik has been providing a Total Component Support TCS for the Boeing 747 fleet of Spain’s third-largest long-range airline. On the occasion of the integration of a fifth 747-400 into the contract, the agreement was recently extended for a further two years. The Total Component Support TCS agreement covers component repair and overhaul services, as well as pooling.
February 17, 2015 · 190 Views
As temperatures drop to record lows of 5°F in New York and 6°F in the capital, central and eastern America have ground to a virtual halt in the grip of icy storms. According to the National Weather Service heavy snowfall and ice moving eastward from the Southern Plains pounded Missouri, Arkansas, southern Illinois, Tennessee, Kentucky, Indiana and Ohio. The winter storm dropped 10 inches (25 cm) of snow on Cincinnati before hitting the nation’s capital with a heavy snowfall reaching up to a foot (30cm) deep, said NWS meteorologist Brian Hurley. The conditions were so severe the Federal offices in Washington DC had to close. Approximately 50 million Americans are now under wind chill advisories as the thermometers plunged to these new lows. Previously in New York City the record was 9°F in 2003, 11°F recorded in Washington in 1987.
“Washington and Baltimore – that’s where the bull’s eye’s going to be,” Hurley also said. The South has failed to escape the bitter conditions with states of emergency being declared in North Carolina, Virginia, Mississippi, Georgia and Kentucky. A virtually unprecedented 2,600 flights had to be canceled, with the hardest hit airports being in North Carolina and Tennessee. The weather front is anticipated to reach Boston on Wednesday, this following on from a weekend storm that left 16 inches of snow on the city, making it the city’s snowiest ever February. Hurley also reported that this new storm will be followed by another arctic front, bringing frigid cold to the eastern United States by Thursday or Friday.