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Saturday, July 20, 2013

AviTrader Daily Aviation News Alert

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

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.


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

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.


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.


Ameco provides line maintenance services to seven new customers

July 18, 2013 · 22 Views

In the first half year of 2013, Ameco Beijing inked contracts with seven international customers to provide line maintenance services in Beijing Capital International Airport. With the new customers, the number of Ameco’s international 3rd party line maintenance customer is up to more than 50. By the middle of July, the seven new customers have started their flights and the aircraft type including Boeing 747, 777, 767 and Airbus A340, A330, A321 and A320. In addition to Beijing, Ameco also set line maintenance outstations in the cities of Tianjin, Guangzhou, Shanghai, Qingdao, Chongqing and Nanjing. In this September, Ameco will start line maintenance service in Chengdu that will be the seventh outstation for line maintenance.


MAEL sign line maintenance agreement with Privilege Style

July 18, 2013 · 36 Views

Monarch Aircraft Engineering (MAEL) has signed a line maintenance technical handling agreement with Privilege Style. With immediate effect, MAEL’s engineering team will provide support for the Spanish charter airline’s Boeing 757 aircraft based at Manchester airport.


Air Lease Corporation announces lease placements with Jet Time

July 18, 2013 · 14 Views

Air Lease Corporation announced long term lease agreements with Jet Time (Denmark) for one Boeing 737-700 aircraft scheduled for delivery in November 2013, and two new ATR 72-600s scheduled for delivery in April and May 2014. Jet Time A/S is a Danish Airline. The company was certified by the Danish aviation authorities and began operating in March 2006.


AMR Corporation reports net profit of $357m for 2nd quarter 2013

July 18, 2013 · 15 Views

AMR Corporation, the parent company of American Airlines reported results for the second quarter ended June 30, 2013. AMR reported consolidated and mainline passenger revenue of $5.6bn and $4.9bn, respectively – the highest passenger revenue for the second quarter in company history. Net profit was $357m, excluding reorganization and special items, a $262m improvement year-over-year. Operating profit was $502m, excluding special items, a $254m improvement over second quarter 2012. GAAP operating profit was $489m, a $347m improvement year-over-year.


UTair takes delivery of first Airbus A321

July 18, 2013 · 13 Views

UTair, one of Russia’s leading carriers, took delivery of its first Airbus aircraft. The brand-new A321 was handed over at a ceremony held at Airbus in Hamburg, Germany. The aircraft is part of a firm order for 20 A321s signed by UTair in July 2012, which is today the largest single order for this type in Russia. UTair’s A321, powered by CFM56 engines, features a single-class cabin layout seating 220 passengers. The airline is planning to operate its A321s to further develop its high density route network.


Thomas Kennedy appointed Regional Vice President Sales Asia

July 18, 2013 · 38 Views

Thomas Kennedy has been appointed as Regional Vice President of Sales, Asia of the Mubadala Aerospace MRO network. He will lead the Asia sales team out of Singapore and will report directly to Frédéric Dupont, Head of Global Sales of the Mubadala Aerospace MRO network. Thomas Kennedy has a long-standing technical and commercial background with 23 years in the international aerospace industry, with a strong track record in MRO operations, commercial sales and business development in the aftermarket sectors.


Thomson Airways selects ASC to provide wheels and brakes support on new Boeing 787s

July 18, 2013 · 21 Views

Airline Services Components Limited (ASC) has been selected by Thomson Airways to provide maintenance support on the Messier-Bugatti-Dowty (MBD) wheel and electrically actuated brake equipment, installed on the airline’s fleet of Boeing 787 Dreamliners. This agreement will initially cover all eight 787 Dreamliners Thomson Airways is set to receive. Thomson Airways is the first UK airline to take delivery of the Dreamliner, which has been operating on short- and mid-haul routes since 21st June. Long haul inaugural flights to Cancun and Florida started on 8th July. The 787 will be operating regular routes from Manchester, East Midlands, Gatwick and Glasgow Airports. Thomson Airways’ will receive its first four aircraft this summer and the next four up until May 2015. ASC will support Thomson Airways under a minimum twelve year Cost Per Aircraft Landing (CAPL) pricing agreement which provides a fixed charge to cover initial provisioning, access to pool stock and the provision of Bridgestone tyres, along with logistics and repair management of the equipment. ASC will also locate consignment inventory in the UK and at operating bases in Brussels, Amsterdam and Stockholm. Through a tripartite agreement with Thomson and MBD, ASC will also manage the supply and replacement of carbon heat stacks and brake LRUs, thus providing Thomson with a total management solution for its wheel and brake equipment at a budgeted pricing structure.


John Turner joins Farnborough International Board as Non-Executive Director

July 19, 2013 · 20 Views

Leading aviation event organisers, Farnborough Internationa,l confirmed that John Turner joins the company as Non-Executive Director for Flying, taking over from Vic Lockwood who has stepped down from the position due to retirement. Turner has exceptional experience of governance and supervision in the aviation area, working for BAe Systems, as Director of the Military Aircraft Division where he managed the corporate governance of the organisation, covering all its flying and airfield operations world-wide as well as the company’s UK flight test activities and associated airfield operations under both UK CAA and MoD regulation.


Werner Aero Services tears down A319 aircraft

July 19, 2013 · 23 Views

Werner Aero Services has begun the tear down of one of its A319 aircraft that was last operated by TAM. The teardown process takes place in Arizona and is expected to be completed in August. “The components from this aircraft will be used to support Werner’s Airbus customers. The availability of these components will help us provide quicker turnaround time to our customers and will also be utilized in our exchange program,” said Mike Cazaz, CEO of Werner Aero.


Atlantic Air Industries joins the ATR maintenance network

July 19, 2013 · 15 Views

ATR, the European manufacturer of turboprop aircraft, and Atlantic Air Industries (AAI), a French company specializing in aircraft maintenance, have signed a collaboration agreement making AAI a new member of ATR’s network of partner maintenance centers. Adding AAI to ATR’s MRO (Maintenance, Repair and Overhaul) network attests to the compliance of its maintenance station at Toulouse-Francazal airport, specializing in the heavy maintenance of ATR airframes, in line with the aircraft manufacturer’s quality standards. Presently, about 60 airlines operate some 320 ATR aircraft in Europe. The arrival of AAI in ATR’s maintenance network follows the recent introduction of Germany’s Rheinland Air Service (RAS) for the European market. The partnerships with AAI and RAS in Europe, plus the existing partnership with Fokker Services for the Asian market, reflect ATR’s ambition to grow and to offer a worldwide network of independent and highly qualified aircraft maintenance service providers for its operators. According to the terms of these agreements, ATR’s partners commit to offering maintenance solutions to operators through compliance with the fundamental customer service rules defined by ATR. ATR’s MRO network is an important part of the regional policy implemented by ATR’s Customer Support Department, which aims to offer high-quality, local solutions to ATR operators in terms of maintenance, logistics and training.


Forward Air reports second quarter 2013 results

July 19, 2013 · 13 Views

Forward Air Corporation reported that operating revenue for the quarter ended June 30, 2013 increased 7.8% to $159.8m from $148.3 m for the same quarter in 2012. Income from operations was $22.5m, compared with $23.1m in the prior-year quarter. As a percent of operating revenue, income from operations was 14.1%, compared with 15.6% in the same quarter last year. Net income during the period was $13.8m compared to $14.2m in the prior-year quarter.


Horizon Air flight attendants ratify five-year contract

July 19, 2013 · 18 Views

Horizon Air flight attendants have approved a new five-year contract. The ratification vote concluded this afternoon with 75 percent of the participating flight attendants voting in favor of the agreement. The new contract includes pay raises, quality of life improvements and more flexible scheduling. The agreement becomes amendable on July 18, 2018. The previous contract became amendable on Dec. 21, 2011. Labor agreements in the airline industry do not expire; they become amendable and remain in effect until a new contract is ratified.


Airbus delivers its 1,000th A330 to Cathay Pacific

July 19, 2013 · 30 Views

Airbus has celebrated the delivery of the 1,000th A330. The aircraft, an A330-300 powered by Rolls-Royce Trent 700 engines, was handed over to Cathay Pacific Airways at special ceremony in Toulouse on July 19th. Cathay Pacific together with its sister airline Dragonair is the world’s largest operator of the A330, with a total of 56 now in service.


Franck Terner to head AIR FRANCE KLM Group Engineering & Maintenance activities

July 19, 2013 · 19 Views

The scope of Franck Terner’s responsibilities has been extended with his appointment as President, AIR FRANCE KLM Engineering & Maintenance. He is a member of the AIR FRANCE KLM Group Executive Committee. Following changes in the organization of the AIR FRANCE KLM Holding Company, Anne Brachet is taking over from Franck Terner as President of Air France Industries (AFI).