Thursday, May 16, 2013
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.
May 14, 2013 · 13 Views
DVB posted consolidated net income before IAS 39 and taxes of €44.7m for the first quarter of 2013, up 20.5% year-on-year (Q1 2012: €37.1m). Total income (comprising net interest income after allowance for credit losses, net fee and commission income, results from investments in companies accounted for using the equity method, and net other operating income/expenses), rose by 4.9%, to €86.0m during the first quarter of 2013 (Q1 2012: €82.0m). Net result from financial instruments in accordance with IAS 39 showed a marked swing to €1.3m (Q1 2012: €–15.1m), reflecting the volatility levels prevailing on foreign exchange and interest rate markets.
May 14, 2013 · 13 Views
Aeronautical Engineers (AEI) has been selected by Allied Air of Nigeria to provide two firm B737-400SF 11 Pallet Configuration conversions, with an option for one additional conversion. The first aircraft is a high gross weight B737-400 (MSN 26081) built in 1993 will undergo freighter modification in June of 2013 at AEI’s Authorized Conversion Center, Flightstar Aircraft Services in Jacksonville Florida.
May 14, 2013 · 21 Views
Boeing delivered a 767-300ER (extended range) to MIAT Mongolian Airlines on May 13th, the first-ever direct purchase delivery to the airline. Mongolia’s flag carrier completed a historic order in 2011 at the U.S. State Department in Washington, D.C., marking the first time in more than two decades that the airline extended its route network by purchasing Boeing airplanes instead of leasing them.
May 14, 2013 · 21 Views
Copa Holdings reported net income of US$113.8m for 1Q13, excluding special items, Copa Holdings would have reported an adjusted net income of $124.4, a 37.3% increase over adjusted net income of US$90.6mo for 1Q12. Operating income for 1Q13 came in at US$142.6m, a 27.9% increase over operating income of US$111.6m in 1Q12. Operating margin for the period came in at 22.2%, compared to 20.5% in 1Q12, as a result of lower unit costs. Total revenues increased 18.0% to US$641.3m.
May 14, 2013 · 14 Views
GOL recorded an operating result of R$101m in 1Q13, accompanied by a margin of 4.9%, an increase of R$94m or 4.6 points, versus an operating result of R$7m in 1Q12, with a margin of 0.3%. Net revenue per available seat-kilometer (PRASK) reached R$15.46 in 1Q13, 12.4% up over 1Q12. This performance gave momentum to the annual increase of 9.1% in revenue per available seat-kilometer (RASK), which came to R$16.89 in 1Q13. Operating cost per available seat-kilometer excluding fuel costs (CASK ex-fuel) stood at 8.71 cents (R$) in 1Q13, remaining virtually flat in relation to the 8.63 cents (R$) recorded in 1Q12.
May 14, 2013 · 2 Views
AMAC Aerospace Turkey has been awarded its EASA Part 145 certification by the European Aviation Safety Agency. The approval enables AMAC Aerospace Turkey to undertake all base and line maintenance on aircraft under 5700kg including the Pilatus PC-12 NG. AMAC Aerospace Turkey will serve as the maintenance service centre base for owners of PC-12 NG in the Middle East Region.
May 14, 2013 · 12 Views
Turkish Airlines finalized a firm order for 40 737 MAX 8s, 10 737 MAX 9s and 20 Next-Generation 737-800 jets, valued at $6.9bn at list prices. The order, originally announced as a commitment last month, also includes options for an additional 25 737 MAX 8s and is the largest Boeing order in Turkish Airlines’ history.
May 14, 2013 · 15 Views
EADS achieved a solid start to 2013, with first quarter revenues and profitability driven by commercial aircraft deliveries. Order intake rose sharply to €49.9bn while the order book had reached €614.3bn at the end of the first quarter. The reported EBIT amounted to €596m with a Net Cash position of €9.2bn at the end of March 2013. EADS’ reported EBIT increased to €596m (Q1 2012: €333m) and included total one-off charges of €145m at Airbus. As anticipated, €14m of this were booked for the A380 wing rib feet repair. In addition, a negative dollar mismatch and balance sheet revaluation of €131m is reflected in the Q1 2013 one-off charges. The finance result amounted to €-251m (Q1 2012: €-143m). The deviation compared to Q1 2012 mainly reflects a negative foreign exchange revaluation. Net Income increased significantly to €241m (Q1 2012: €126m). Airbus reported earnings of €456m and revenues of €9.2bn in the 1Q13 compared to €172m and €8bn in 1Q12.
May 15, 2013 · 17 Views
WestJet announced the departure of Cam Kenyon, WestJet Executive Vice-President, Operations, effective July 20, 2013. Cam will be returning to Denver to be with his family.
May 15, 2013 · 12 Views
AJW Aviation has been chosen by Air Arabia Egypt to provide power-by-the-hour support and leased inventory for two of its A320 aircraft. Air Arabia Egypt is a joint venture between Air Arabia; – the first and largest low-cost carrier in the Middle East and North Africa – and the travel and tourism company Travco Group. With flights targeted to Africa, the Middle East and Europe, the airline began commercial operations in June 2010 with three A320-214 aircraft and has since added another to its fleet, currently on order.
May 15, 2013 · 14 Views
Avtrade, a leading component support expert with UK headquarters and operations in Dubai, Moscow and Singapore specializing in tailor-made aircraft support solutions, has contracted DB Schenker to store, manage and provide local logistics services to support their Dubai and Singapore operations. This will endorse Avtrade’s commitment to offer enhanced support to the Gulf and Asian carriers, contracted clients and local operators, plus provide all Avtrade customers in the regions with an exceptional level of service. Benefits include the ability to hold increased inventory of A320, A330, B737, B757 and B767 aircraft components, local storage with 24/7 availability, same time-zone support plus reduced transit and customs clearance times.
May 15, 2013 · 18 Views
TransDigm Group (TDG) has entered into a definitive agreement to acquire Arkwin Industries, Inc., for approximately $286m in cash. The acquisition, subject to regulatory approvals and other customary closing conditions, is expected to close in the third quarter of fiscal 2013. Arkwin, located on Long Island, New York, manufactures proprietary, highly engineered aerospace hydraulic and fuel system components for commercial and military aircraft, helicopters and other specialty applications. The major commercial end-use platforms include the Boeing 737 and 777, Airbus 320, and Bombardier and Embraer regional jets. The major military end-use platforms include the Lockheed JSF, C-130 and F-16; Sikorsky SH-60, S-76 and S-92; Boeing CH-47 and F/A-18. Additionally, the Company has product positions on various ground-based aero derivative turbine engines. Arkwin had calendar year 2012 revenues of approximately $95m. Aftermarket accounts for approximately 40% of the revenues and the commercial market about 50% of the revenues.
May 15, 2013 · 18 Views
AeroCentury, an independent aircraft leasing company, released its operating results for the first quarter ended March 31, 2013. The Company reported net income of $4.1m for the first quarter of 2013, compared to net income of $1.3m for the first quarter of 2012. Total revenues were $12.8m for the first quarter ended March 31, 2013 compared to total revenues of $6.8m for the same period a year ago. The year-to-year increase was primarily due to an increase in maintenance reserves revenue as a result of a one-time payment of $6.5m received from the prior lessee of two of the Company’s aircraft when the leases were assigned to a new lessee in 2012 and recognized as maintenance reserves revenue upon termination of the leases in the first quarter of 2013. Operating lease revenue was lower in the first quarter of 2013 compared to the same period a year ago, primarily as a result of lower portfolio utilization and reduced revenue from assets for which the Company does not record revenue in advance of receipt as a result of substantial uncertainty of collectability. The effect of these decreases was partially offset by increases in operating lease revenue from assets purchased during 2012.
May 15, 2013 · 17 Views
Boeing and Southwest Airlines reported the launch of the 737 MAX 7, the third member of the 737 MAX family. The Dallas-based carrier and launch customer for the 737 MAX program became the first airline to order the 737 MAX 7, when it converted 30 existing orders for Next-Generation 737s into orders for the 737 MAX 7. Southwest also exercised options to add five more Next-Generation 737-800s to its fleet. These airplanes, along with the 737 MAX 7s, are part of Southwest’s ongoing effort to improve fuel efficiency and profitability. The 737 MAX 7 supports Southwest’s expanding fleet modernization effort. Southwest is expected to take its first 737 MAX 7 delivery in 2019.
May 15, 2013 · 19 Views
Turbomeca reported the qualification of Sky Tech LLP, as Certified Maintenance Center (Level 1&2) in Kazakhstan for Turbomeca Arriel 2B/2B1/2D and Arriel 1E2 engines, respectively powering EC130, AS350 and EC145 helicopters. The company’s facilities are located at Airport Boraldai – Almaty Region. With a current fleet of 52 Turbomeca engines in service and further 100 engines planned to be delivered within the next years, Kazakhstan market holds further growth perspective.
May 15, 2013 · 18 Views
Petra Airlines, a privately-owned Jordanian airline, set up by the RUM group and which began operations in 2010, has signed a contract with AFI KLM E&M covering component support for its two A320s, including a third aircraft by the end of this year. The agreement includes flat-rate repair services and flight-hour pool access.
May 15, 2013 · 17 Views
SIAEC Group posted a profit attributable to owners of the parent of $270.1m for the financial year ended 31 March 2013, an increase of $1.0m on or 0.4% over last year. Operating profit was $1.5m or 1.2% lower at $128.1m. Revenue was $23.2m or 2.0% lower, mainly due to lower fleet management and project revenue. Project revenue relates to the provision of services for the cabin interior reconfiguration of aircraft. Expenditure reduced by $21.7m or 2.1%, in tandem with the lower revenue. Subcontract costs in particular declined by $32.6m or 19.3%, but this was partially offset by higher staff costs. Share of profits from associated and joint venture companies was $2.3m or 1.5% higher at $159.2m, representing a contribution of 52.0% to the Group’s pre-tax profits.
May 15, 2013 · 52 Views
SR Technics, part of the Mubadala Aerospace MRO network, has established its senior management team, comprising experienced Malaysian and Swiss professionals, and has recruited 17 Technicians and four Certifying Technicians of Malaysian nationality for its new component repair facility in Kuala Lumpur, Malaysia, which is due to open at the end of 2013. Heading the team is General Manager Heinz Freimann, who previously led the Component Maintenance division at SR Technics’ Zurich headquarters. Also joining the Malaysian team from SR Technics’ Swiss operation are Christian Meyer as Head of Finance & Shared Services and Julien Robineau as Head of Supply Chain. As Head of Maintenance Operations, Joel Lim will be responsible for managing day-to-day workmanship performance and quality. Sivadass Krishnan was appointed in March 2013 as Human Resources Manager. He joins SR Technics from Alstom Asia Pacific SdnBhd in Kuala Lumpur. Completing the team is Jimmy Khaw Teik Lim from Hamilton Sundstrand, who joins as Quality & Safety Manager.