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Thursday, May 02, 2013

AviTrader Daily Aviation News Alert

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

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.


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

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.


Design flaws led to 787 battery fire

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.


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

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.


Air France-KLM selects GEnx engines for Boeing 787 fleet

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.


ILFC closes $1.5bn senior secured term loan

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.


Airbus Commercial reports another year of financial improvement

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).


Boeing Commercial Airplanes reports full year revenue of $53bn

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.


A350 XWB in Bolivia for high altitude testing

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.


Firefly welcomes first ATR 72-600

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.


GE’s Passport engine begins first full engine test

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.


Rolls-Royce wins order from CIT to power 23 aircraft

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.


Macquarie AirFinance leases 737-800Ws to AeroMexico, EL AL & Travel Service

April 30, 2013 · 2 Views

Macquarie AirFinance, a global aircraft leasing company based in Dublin, Ireland, has completed deliveries of three Boeing 737-800W aircraft to Mexico City-based operator AeroMexico, Israeli flag carrier EL AL and Czech Republic-based operator Travel Service. All three aircraft were purchased by Macquarie AirFinance from Tyrolean Airways, without leases in place at the time of agreement, as part of a wider deal to assist Tyrolean to consolidate its fleet around A320 family aircraft. Two of the aircraft are 2005-build and one is a 2006 model. Deliveries took place to AeroMexico on 31 January, 2013 (MSN 34262); EL AL on 04 March, 2013 (MSN 33834) and Travel Service on 29 April, 2013 (MSN 33833). AeroMexico and Travel Service are existing customers of Macquarie AirFinance and EL AL is a new customer.


Flybe UK and Monarch Aircraft Engineering sign contract

April 30, 2013 · 2 Views

Monarch Aircraft Engineering (MAEL) has signed a contract and will enter into an agreement, with Flybe UK, for the provision of Bombardier Q400 and Embraer 175/195 line maintenance in the UK at Birmingham, Manchester, London Gatwick and East Midlands airports. Commencing on Wednesday May 1st 2013, the agreement will also include the provision of Bombardier Q400 and Embraer 175/195 light hangar maintenance and storage and logistics at Birmingham and Manchester.


AJW Capital Partners purchases A340-600 aircraft

April 30, 2013 · 10 Views

AJW Capital Partners, part of the AJW Group of companies, has entered into a purchase agreement for an A340-600 MSN 779 aircraft. The VVIP aircraft will enter service for an undisclosed Head of State. AJW Capital is the AJW Group’s principal investing division and is responsible for the purchase, sale and lease of large aviation-related capital assets, including whole aircraft and engines.


LCI takes off with Bond offshore Helicopters

April 30, 2013 · 4 Views

Lease Corporation International’s (LCI) helicopter division took off with its first delivery of a new AW139 helicopter to Bond Offshore Helicopters (Bond) in Aberdeen, Scotland. The delivery follows the agreement of a long term lease between LCI and Bond’s parent company Avincis Group – a leading global provider of mission critical services. The 15-seat, twin-engined helicopter will be operated by Bond to provide offshore crew change support. The delivery marks the first aircraft service entry for LCI’s new helicopter division, which was launched in 2012 with a $400m order for a mixed fleet of AgustaWestland AW139, AW169 and AW189 helicopters.


Stéphane Cueille appointed Managing Director of Aircelle, at Burnley

April 30, 2013 · 5 Views

Stéphane Cueille has been appointed Managing Director for Aircelle, an Aircelle (Safran) subsidiary located in Burnley, Lancashire – United Kingdom, effective May 1, 2013. He will report directly to Vincent Mascré, Aircelle CEO.


Delta names Richard B. Hirst Executive Vice President and Chief Legal Officer

April 30, 2013 · 13 Views

Delta Air Lines has promoted Richard “Ben” Hirst to the position of executive vice president and chief legal officer, effective immediately. In his new role, Hirst will continue reporting to Delta CEO Richard Anderson.


United to add 30 new Embraer 76-Seat aircraft to United Express fleet

April 30, 2013 · 2 Views

United Airlines announced an agreement to add 30 Embraer 175 regional jets to the United Express fleet. Under an agreement with Embraer, United will purchase the aircraft with deliveries in 2014 and 2015. These aircraft will be operated by a United Express partner to be announced later. The Embraer 175 is the first 76-seat regional jet aircraft in the United Express fleet. The aircraft will be configured with 12 United First, 16 Economy Plus and 48 United Economy seats. As United inducts the new aircraft into the United Express fleet, the company will remove some of the older 50-seat regional jets in the fleet. The E175s will consume 10% less fuel per seat and will have less CO2 emissions per seat than the 50-seat aircraft they replace.


Embraer posts 1st quarter results

April 30, 2013 · 4 Views

In the first quarter of 2013 (1Q13), Embraer delivered 17 commercial and 12 executive (8 light and 4 large) jets; representing a reduction of 4 commercial and 1 executive jets delivered in the same period of 2012, firm order backlog grew to US$13.3bn, mainly as a result of an improvement in the order environment in Commercial aviation, as well as continued orders in the Defense & Security segment. As a result of aircraft deliveries, coupled with revenues from the Company’s growing Defense & Security business, 1Q13 revenues reached US$1,085.9m and gross margin was 22.2% for the period. EBIT and EBITDA margins were 3.6% and 9.2% respectively, in 1Q13, net income attributable to Embraer and earnings per ADS totaled US$30m and US$0.1651, respectively, in 1Q13. Net cash position totaled US$ 98.2m.


Spirit Airlines’ first quarter 2013 net income per share increases 36.4%

April 30, 2013 · 7 Views

For the first quarter 2013,  Spirit Airlines’ adjusted net income was $32.8m. GAAP net income was $30.6m. For the first quarter 2013, Spirit achieved an operating margin, excluding special items, of 14.4%. Operating margin on a GAAP basis was 13.4% for the first quarter 2013. Spirit ended the first quarter 2013 with $483.5m in unrestricted cash.  Total operating revenue was $370.4m, an increase of 22.9%, compared to first quarter 2012. Total revenue per available seat mile (“RASM”) for the first quarter 2013 was 11.85 cents, an increase of 1.7 percent compared to the first quarter 2012 driven by strength in operating yields. The calendar shift of Easter occurring in March this year compared to April in 2012 contributed to the strong first quarter 2013 results.


Crane Aerospace & Electronics appoints ST Aerospace as an Authorized Repair Facility

May 1, 2013 · 9 Views

Crane Aerospace & Electronics, a Crane Co. segment, have signed an Authorized Repair Facility Agreement with ST Aerospace Systems. Under the terms of the agreement, ST Aerospace will serve as an authorized repair facility in Singapore for a variety of Crane products for use on commercial aircraft. These include fuel pumps, proximity sensors, transformer rectifiers, battery chargers, brake control systems, wheel speed transducers and control valves.


Aerosphere Aviation Services improves operational speed with Quantum’s scalable and secure Oracle database

May 1, 2013 · 5 Views

Aerosphere Aviation Services (AASI), a provider of stock materials for Boeing, Douglas, Airbus and Regional aircraft’s, will significantly improve the speed and agility of operations through Quantum Control’s highly scalable and secure Oracle database. Quantum Control software includes a range of logistics and business modules to efficiently manage AASI’s high-volume rotable, consumable, and expendable stock offering in support of AOG at leading airlines and heavy maintenance facilities for both commercial and military aircraft. Currently AASI carries over 35,000 line items in-house with an additional 60,000 line items at various MRO consignment locations across the United States.


Small Planet Airlines is renewing its aircraft fleet

May 1, 2013 · 9 Views

The holiday charter company Small Planet Airlines is replacing its old Boeing 737-300s with newer Airbus A320 aircraft. Small Planet Airlines redelivered two old Boeing 737-300 aircraft to the leasing company at the end of last year and will return the remaining two after this summer season. From then on, the company will operate an all-A320 fleet across its two Air Operator Certificates (AOCs) in Poland and Lithuania. In order to replace the ageing 737-300s, and to capture new growth opportunities, Small Planet Airlines has leased 5 Airbus A320 aircraft. Small Planet Airlines Poland and Small Planet Airlines Lithuania combined will use 9 aircraft in total this summer (3 in Poland and 2 in each of Lithuania, France and Great Britain).


NetJets takes delivery of first Signature Series Phenom 300

May 1, 2013 · 15 Views

NetJets, a Berkshire Hathaway company and a leader in private aviation, took delivery of its first NetJets Signature Series Phenom 300 aircraft – the first light cabin NetJets Signature Series aircraft, to enter the marketplace. NetJets formally accepted the aircraft at a special delivery ceremony at Embraer Executive Jets’ Customer and Delivery Center in Melbourne, Florida. NetJets has 125 Signature Series Phenom 300 aircraft on order (50 firm orders and 75 options) valued at $1bn.


XOJET expands leadership team

May 1, 2013 · 16 Views

XOJET appointed Shari Jones as Senior Vice President and Chief Marketing Officer, based in the company’s Bay Area headquarters. Ms. Jones brings more than 15 years of expertise in corporate brand management, marketing and brand building to the XOJET team. She will be responsible for the development of fully integrated brand strategies and their execution across XOJET’s product offerings and consumer communication channels. A member of the company’s executive leadership team, Ms. Jones will report directly to Bradley Stewart, XOJET President and Chief Executive Officer.


AW169 Helicopter final assembly line to be established at AgustaWestland Philadelphia

May 1, 2013 · 7 Views

AgustaWestland, a Finmeccanica company, released that a final assembly line for the new generation AW169 helicopter will be established at its AgustaWestland Philadelphia facility located at Northeast Philadelphia Airport in the United States of America. The first Philadelphia built AW169 helicopter will be inducted into the final assembly in May 2014 and will be delivered to the first customer in early-2015. The new production line will ramp up to produce around 20 aircraft per year by 2017. Incorporating a lean advanced manufacturing philosophy, the new AW169 production line will be scalable to accommodate production escalations based on market demand. Also AgustaWestland’s facilities in Vergiate (Italy) and Yeovil (UK) will play major roles in the manufacturing activities for the AW169 programme.


Boeing rolls out first F-15SA for Royal Saudi Air Force

May 1, 2013 · 14 Views

Boeing rolled out the F-15SA, ushering in a new era in fighter aircraft capability and affordability for the Kingdom of Saudi Arabia. The F-15SA, the newest variant of the combat-proven F-15, provides improved performance and increased survivability at a lower life-cycle cost. The aircraft has two additional wing stations for increased payload and capability.


Embraer Executive Jets certifies Prodigy Touch for Phenom 300

May 1, 2013 · 11 Views

With the certification of the new Prodigy Touch Avionics Suite for the Phenom 300 by ANAC – Agência Nacional de Aviação Civil and the U.S. Federal Aviation Administration, Embraer Executive Jets revolutionizes the interface between pilots and avionics, giving pilots the first touchscreen-controlled glass flight deck, specifically designed for light turbine aircraft. Prodigy Touch, a breakthrough in cockpit philosophy based on the Garmin G3000 platform, will be available as an option for the Phenom 300 beginning in the fourth quarter of 2013. The Prodigy Touch Flight Deck makes extensive use of the latest technologies in a highly integrated and automated architecture. Designed with the “quiet-and-dark” philosophy, the touch-screen technology is based on human factors design and intelligent automation specifically focusing on single-pilot operation.