Saturday, May 25, 2013
AviTrader Daily Aviation News Alert
This is an overview of all articles linked within the selected daily newsletter.
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February 20, 2015 · 541 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 · 639 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 · 195 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 · 162 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 · 111 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 · 78 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 · 78 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 · 74 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 · 65 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 · 64 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 · 40 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 · 53 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 23, 2013 · 3 Views
China’s largest helicopter operator in the power and electricity sectors, the State Grid General Aviation Company (SGGAC), has ordered one EC225 and two AS350 B3e rotorcraft to support the country’s electrical grid development and build the Chinese company’s business into other airlift duties. As the wholly-owned subsidiary of State Grid Corporation of China, one of the world’s largest electricity providers, SGGAC is now expanding its helicopter business scope into aerial survey, emergency rescue, passenger and freight transportation, infrastructure construction and scientific experimentation.
May 23, 2013 · 13 Views
BOC Aviation has entered into a new five-year agreement with ST Aerospace to maintain Airbus 320 and Boeing 737 airframes. The two companies have had a business relationship since 1996. BOC Aviation has in place a framework of support services from airframe and engine maintenance and repair operators (“MROs”) and technical services when the Company repossesses aircraft. ST Aerospace, a leading aviation engineering and MRO service provider, has a global network to support BOC Aviation. ST Aerospace has been instrumental in assisting the transition of an A319-100 (MSN 2664) for delivery to Bangkok Airways during which it carried out a heavy C-check, repairs, parts replacement, reconfiguration and re-painting, to meet the standards for a smooth transition of the aircraft to the new operator.
May 23, 2013 · 13 Views
Farnborough, UK based Gama Support Services has been appointed a Beechcraft authorised service centre, to provide maintenance for King Air, Baron and Bonanza aircraft. The award of Beechcraft authorised service centre status enables Gama to provide owners and operators with factory backed complete maintenance support solutions covering airframe, engine, systems and avionics including Support PLUS and warranty programs.
May 23, 2013 · 15 Views
AJW Aviation, the leading independent complete aircraft spares support specialist, has been selected by Russian airline JSC UTair Aviation, to provide power-by-the-hour support for its fleet of thirty-seven B737-500 and B737-400 aircraft. The PBH contract, supported by ATA Chapter, also includes a large home base stock purchase, which will bring the combined fleet that AJW has under PBH or pooling contract to over 400 aircraft globally. AJW will support the airline from its network of strategic hubs across Europe and the rest of the world, which comprise service ready Boeing and Airbus component inventories valued at almost $500m.
May 23, 2013 · 8 Views
US Airways announced that it priced an offering of Class C enhanced equipment trust certificates in the aggregate face amount of approximately $100m. This offering is an additional issuance from the Company’s Series 2012-2 series of enhanced equipment trust certificates, under which an offering of Class A certificates and Class B certificates closed on December 13, 2012. The Company intends to use the proceeds from the offering to reimburse the Company for the cost of the purchase of two Airbus aircraft currently owned by the Company and two Airbus aircraft scheduled to be delivered to the Company prior to the date of issuance of the Certificates, to finance its purchase of seven Airbus aircraft scheduled to be delivered from June 2013 to October 2013 and to use the balance, if any, for general corporate purposes. The $100m financing is comprised of Class C certificates with a final expected distribution date of June 3, 2018. The Certificates are expected to be issued on June 6, 2013, subject to customary closing conditions. Goldman, Sachs & Co. acted as sole structuring agent and bookrunner for the offering.
May 23, 2013 · 9 Views
Atlanta-based Precision Aviation Group (PAG) released that Gardner Aviation Services (GAS) has changed the company name to Precision Aviation Services (PAS). “This name change is the last in a series of name changes to our existing operating companies to identify and align each business as a member of the Precision Aviation Group of Companies,” said David Mast, PAG President and CEO. “PAG companies provide MRO and Supply Chain services for General Aviation, Commercial and Military operators of Fixed and Rotary-Wing aircraft worldwide. Over the last 2 years we have made substantial investments in PAS, including the launch of the Rotorcraft Services Division (RSD), OEM/Factory training for Technicians, updated their IT infrastructure, and made facility enhancements that increase their capacity and capabilities. The addition of PAS has enabled us to expand the products and services we can provide to our existing customer base.”
May 23, 2013 · 10 Views
Finmeccanica reported the sale of the fourth AW139 intermediate twin helicopter for corporate transport in the UK & Ireland. This latest sale continues the success of the AW139 in the UK & Ireland corporate helicopter market in the last two years. The helicopter will be delivered in 2014 to an undisclosed customer. Almost 40 AW139 helicopters have been sold across Europe for VIP, corporate and government transport roles.
May 23, 2013 · 10 Views
Christopher “Kit” Johnson has joined Airbus Americas as its new Customs Manager for the company’s A320 Family assembly line in Mobile, Alabama. Johnson joined the company on May 20th, filling the second position for the company’s new manufacturing facility. In his role, he will be responsible for securing and improving customs activities in U.S. with a focus on Airbus Americas’ aircraft final assembly line in Mobile, implementing customs processes in cooperation with U.S. Customs Authorities, providing operational oversight of Customs Brokers and third party logistics contractors, ensuring adequate internal control processes for customs compliance, and continuously evaluating business activities for duty minimization opportunities.
May 24, 2013 · 14 Views
Avianca Holdings earned a net income of US$75.3m for 1Q-13, an increase of more than US$75m over the profit recorded for the same period in 2012. First quarter operating revenues increased to US$1.11bn, up 5.9% from 1Q 2012 due mainly to a 6.5% increase in passenger revenues driven by an 8.6% growth in passenger traffic over 1Q 2012 figures. Cargo and other revenue increased by 2.5%, primarily as a result of an increase in our Freight and Loyalty revenues. Operating income (EBIT) increased to US$108.1m, a 31.1% increase from US$82.4m in 1Q-12. Excluding special items in 1Q-12 operating income increased by 48.5%. Operating Margin for 1Q-13 rose to 9.7% compared to 7.8% in 1Q-12, primarily as a result of lower unit costs.
May 24, 2013 · 15 Views
Colorado based Air Comm Corporation (ACC) has completed the acquisition of Texas based Meggitt (Addison), formerly Keith Products. Air Comm Corporation is a world leader in engineered design and manufacture of Environmental Control Systems (ECS) used by military and civil rotorcraft and general aviation fixed wing aircraft. The nearly 30 year old family-owned business now has over 60 active Federal Aviation Administration Supplemental Type Certificates and OEM Type Certificates including heating and air-conditioning systems for over a dozen OEM manufacturers including: Bell, Sikorsky, Eurocopter, AgustaWestland, Enstrom, Beechcraft, Cessna, Learjet, Piaggio, Pilatus, and KAI.
May 24, 2013 · 19 Views
Embraer Executive Jets reported the sale of an ultra-large Lineage 1000, to an undisclosed European client, operated by FLYINGGROUP. The aircraft, the first Lineage 1000 sale to a customer in Belgium, will join the Belgium-based company’s fleet and will be available for third-party charter. Delivery of the aircraft is scheduled for the second half of 2013.
May 24, 2013 · 14 Views
AAR reported that its Board of Directors has named Ronald R. Fogleman as its Lead Director. Fogleman, a retired U.S. Air Force General and a former member of the U.S. Joint Chiefs of Staff, has served as an AAR director since 2001 and is currently Chairman of the Board’s Nominating and Governance Committee and a member of its Compensation Committee. He also serves as non-executive Chairman of Alliant Techsystems.
May 24, 2013 · 7 Views
The partnership between Fokker Services and Nayak Aircraft Services, an independant aircraft maintenance provider, broadens the range of services offered in the various FLYFokker programs. The partnership focuses on Line Maintenance services, leading to further improvement of the reliability and availability of the customers’ fleet. The FLYFokker program was launched in 2009 and consists of cost-effective aircraft and service solutions for start-up, mature and phase-out operators. Since the launch of the program, numerous of airlines around the world have started operating Fokker aircraft. The FLYFokker program encompasses a full scope of services that cover the supportive needs of Fokker operators throughout the life cycle of the fleet. The program consists of four support solutions namely: Take Off, Take Care, Take Over and Take Next. The program is based on Fokker Services’ extensive experience in providing support.
May 24, 2013 · 62 Views
GE Aviation and Sigma Labs signed a Joint Technology Development Agreement (JTDA) to advance and implement in-process inspection technologies for additive manufactured jet engine components. The mutually-developed inspection technology will verify the quality and geometry of additive components during the additive build process, increasing additive production speeds up to 25 percent in support of GE Aviation’s growing production rates. “Today, post-build inspection procedures account for as much as 25 percent of the time required to produce an additively manufactured engine component,” said Greg Morris, GE Aviation’s business development leader for additive manufacturing. “By conducting those inspection procedures while the component is being built, GE Aviation and Sigma labs will expedite production rates for GE’s additive manufactured engine components like the LEAP fuel nozzle.”