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Thursday, July 04, 2013

AviTrader Daily Aviation News Alert

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

February 20, 2015 · 542 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 · 640 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 · 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.


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

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.


Air France-KLM selects GEnx engines for Boeing 787 fleet

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.


ILFC closes $1.5bn senior secured term loan

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.


Airbus Commercial reports another year of financial improvement

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).


Boeing Commercial Airplanes reports full year revenue of $53bn

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.


A350 XWB in Bolivia for high altitude testing

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.


Firefly welcomes first ATR 72-600

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.


GE’s Passport engine begins first full engine test

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.


Rolls-Royce wins order from CIT to power 23 aircraft

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.


Monica Beusch appointed as general manager of Jet Aviation Zurich and head of EMEA and Asia FBO Services

July 2, 2013 · 15 Views

Jet Aviation has appointed Monica Beusch as the new general manager of Jet Aviation Zurich. Beusch will also serve as head of FBO Services in EMEA and Asia. In her new role as general manager, Beusch is charged with overseeing the Jet Aviation Zurich operation, as well as leading the FBOs in Geneva and Dusseldorf. As head of FBO Services in EMEA and Asia, Beusch is also responsible for ensuring all services meet customer needs and growing the network in strategic locations. She reports directly to Stefan Benz, Jet Aviation’s vice president of MRO and FBO operations, EMEA and Asia.


Doric Nimrod Air Three lists with Market Capitalisation of £220m

July 2, 2013 · 9 Views

Nimrod Capital and Doric Lease announced the successful listing of a new investment company on the London Stock Exchange (LSE). Doric Nimrod Air Three Ltd. (“DNA3”) aims to pay a quarterly dividend equivalent to 8.25% annum (based on the issue price of 100 pence per share) following the purchase and leasing of four Airbus A380 planes to Emirates. DNA3 continues an investment model that has been proven highly successful for UK investors as it has been for many years in Europe, and follows the launch of two previous successful offerings by Nimrod Capital. The Doric Lease Corp team, the lease asset manager, has a long and successful history in managing these types of aircraft investments. DNA3’s investment strategy is the purchase of four A380 aircraft, scheduled for delivery from September to November 2013, and leasing them to Emirates, each for a period of up to 12 years. DNA3 will aim to pay a dividend of 2.0625 pence per share per quarter, equivalent to an annual dividend of 8.25% per 100 pence share. Under the terms of the lease, the airline is responsible for insurance and all other service, maintenance and repair costs. In addition to the regular yield of 8.25 per cent, once the lease has expired, the aircraft are likely to be sold and investors paid out from the residual value.


€180m revolving credit facility for Finnair

July 2, 2013 · 17 Views

A €180m syndicated revolving credit facility for Finnair Plc. with Handelsbanken as coordinator and Handelsbanken, Pohjola, Nordea, Skandinaviska Enskilda Banken and Danske Bank as mandated lead arrangers, was signed on 2nd July 2013. The Facility carries a maturity of 3 years.


Airstream arranges purchase and lease of one ATR42-500 to Hevilift Group of Papua New Guinea

July 2, 2013 · 11 Views

Airstream International Group has arranged in collaboration with a large US based Lessor, the purchase and onward lease of 1 ATR42-500, to Hevilift Group. MSN501, previously owned by Danish Air Transport, Denmark, will be used to supplement Hevilift’s fleet of two ATR42-320s and three DHC-6 aircraft. Airstream has had a very successful first half of 2013 having concluded the sale and/or lease of 12 aircraft since the start of the year.


Air France selects UTC Aerospace Systems for E-Jet MRO services

July 2, 2013 · 16 Views

Air France has selected UTC Aerospace Systems to be the maintenance, repair and overhaul services (MRO) provider for various actuation, air management and electrical systems on Embraer E-Jet fleets that Air France supports for its customers. This is UTC Aerospace Systems’ first contract for E-Jet repairs with Air France. The three-year agreement covers MRO services for the electric power generating system, electric power equipment, air management system, and flight systems on the airline’s ERJ-170, ERJ-175 and ERJ-190 aircraft. The work will be performed by subsidiaries of UTC Aerospace Systems in Dijon, France and Maastricht, The Netherlands.


Delta Air Lines reports operating performance for June 2013

July 2, 2013 · 14 Views

Delta Air Lines reported system traffic for the month of June 2013 increased 0.7% compared to the same period in 2012, while system capacity was up 1.4%. System load factor for the month was slightly down, by 0.6 points to 87.5%.


737 MAX will optimize aerodynamics with BAE Systems’ electronics

July 2, 2013 · 11 Views

Boeing has selected BAE Systems to provide the spoiler control electronics for the new Boeing 737 MAX. The successful outcome of this competitive procurement was largely driven by the BAE Systems team’s ability to demonstrate a system that showed technical readiness and reduced development risk when introduced on the Boeing 737 MAX.


Management appointments at Safran

July 2, 2013 · 10 Views

General William Kurtz, is named Military Advisor to Jean-Paul Herteman, Chairman and CEO of Safran. He replaces Baudouin Albanel, who is retiring. Franck Saudo is named Executive Vice President, Operator Customers at Turbomeca (Safran), replacing Bruno Even, who is now Chief Executive Officer of Sagem. David Quancard, is named director of the Space Engines division at Snecma (Safran), replacing Martin Sion, who is now Chairman and CEO of Aircelle.


EASA EU1149/2011-compliant training courses now available at LTT

July 3, 2013 · 22 Views

Lufthansa Technical Training (LTT) now offers type and basic training in compliance with the new requirements of the European Aviation Safety Agency (EASA). The statutory requirement referred to as EU1149/2011 states that beginning August 1, 2013, only the new requirements for content and duration for EASA Part-147-approved Type and Basic Training will apply for training organizations as well as for license holders of EASA category B1 and B2. This means that LTT already provides customers a total of 400 practical and theoretical EASA-approved type training courses for 17 aircraft types as well as 50 basic courses in compliance with the new regulations. Accordingly, in June the authority responsible for the matter – the Federal Aviation Authority – approved all relevant type training courses offered by Lufthansa Technical Training.


Turbine Controls names Terry Teo new Sales Director for Pacific Rim

July 3, 2013 · 83 Views

Turbine Controls announced the addition of Terry Teo as new Sales Director for the Pacific Rim. Having a permanent presence in the Pacific Rim will enable TCI to better support and grow its relationships in this region. Turbine Controls is an independent MRO facility based in Bloomfield Connecticut and Miramar Florida that supports engine component and accessory repair as well as pneumatic, hydraulic and electromechanical components.


IBA manages transition of first A340-600 aircraft into secondary market

July 3, 2013 · 19 Views

IBA has completed the transition of an ex-Virgin Atlantic A340-600 aircraft into Hi-Fly Malta. The aircraft is the first of its type to transition into the secondary market following its redelivery from Virgin last year. IBA acted as Technical Adviser to a syndicate of banks during both, the original redelivery from Virgin and for the delivery to Hi -Fly. According to IBA’s Jet Data database there are 97 A340-600 aircraft currently in service of which 3 are parked in Tarbes.


Airclaims to use Commsoft’s OASES in CAMO support for Hi Fly Malta A340

July 3, 2013 · 4 Views

Airclaims has signed a 6-month contract with Hi Fly Malta to provide CAMO support for an A340-600. Airclaims, a leading provider of aviation claims, risk and asset management services, will be relying on Commsoft’s OASES MRO IT system to fulfil the contract. Designed to combine ease of use with a technical sophistication that allows for the full integration of all maintenance and engineering functions, OASES is structured in a modular format. To support the Hi Fly Malta Airbus, Airclaims will be using the Core, Airworthiness and Planning modules.


Garuda Indonesia takes delivery of first 777-300ER

July 3, 2013 · 12 Views

Boeing and Garuda Indonesia celebrated the arrival of the airline’s first 777-300ER (Extended Range) in Jakarta on July 2nd. The long-haul, twin-aisle airplane is the first of 10 777-300ERs delivered to the airline and is a key component of the Garuda Indonesia’s Quantum Leap fleet revitalization program.


Hawaiian Airlines introduces state-of-the-art A330 simulator for pilot training

July 3, 2013 · 6 Views

Hawaiian Airlines has unveiled a state-of-the-art Airbus A330 Full Flight Simulator (FFS) at its corporate headquarters to provide on-site training for its pilots. The simulator is manufactured by Sim-Industries, a subsidiary of Lockheed Martin, and allows Hawaiian to continue its Advanced Qualification Program for pilots using the most advanced and sophisticated technology available. Hawaiian is the first and only Hawaii-based airline to have a FFS on-site for its pilots. The multi-million-dollar investment is estimated to return $3.6m in cost savings every year.


US Airways reports record June load factor of 88%

July 3, 2013 · 11 Views

US Airways Group reported its June 2013 traffic results. Mainline traffic for the month was up 7.3% versus June 2012, while mainline capacity was up 5.3%. Mainline passenger load factor was a record 88.2% for the month of June, up 1.7 points versus June 2012.


P&W and SkyWest sign aftermarket agreement for fleet of Mitsubishi Regional Jets

July 3, 2013 · 22 Views

Pratt & Whitney and SkyWest have signed a definitive agreement for a PureSolution Fleet Management Program supporting the PW1217G engines installed in a fleet of 100 MRJ90 Mitsubishi Regional Jets and up to an additional 100 option MRJ90 Mitsubishi Regional Jets for a term of up to 16 years. Each MRJ90 will be powered by two PurePower PW1217G engines. Deliveries are anticipated to begin in 2017. PureSolution services offer MRO expertise from the PurePower engine’s OEM creator and design-responsible partners. PureSolution services offer customers a wide range of comprehensive and fully customizable MRO services to ensure predictable maintenance costs and maximize the PurePower engine’s performance over its life span – resulting in the lowest cost of ownership.


Italian Police receive first two AW139 Helicopters

July 3, 2013 · 20 Views

AgustaWestland reported that the Italian Police has taken delivery of its first two AW139 intermediate twin engine helicopters on schedule. These helicopters will be operated by the 1st Aviation Unit of the Italian Police and based at Pratica di Mare, close to Rome. Additional aircraft will be delivered to the customer in the coming months. The contract, which was signed in July last year, includes a total of eight AW139 helicopters.


Ryanair June traffic grows 2%

July 3, 2013 · 10 Views

Ryanair released passenger and load factor statistics for June 2013, with its monthly traffic increasing by 2%. The load factor for June 2013 was 84%, the same as the previous year.


IAG Group report June traffic increase of 8%

July 3, 2013 · 23 Views

IAG released that June 2013 Group traffic increased by 8.2% versus June 2012 while Group capacity rose by 7.4%. The load factor for June was up 0.7 points to 84.7%.