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Saturday, July 27, 2013

AviTrader Daily Aviation News Alert

This is an overview of all articles linked within the selected daily newsletter.
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Emirates reject Delta’s apology regarding Anderson’s 9/11 comments

February 20, 2015 · 556 Views

The bitter dispute between US- and Gulf-based airlines has reached a new level after Emirates flatly rejected an open apology made concerning what was seen as incredibly tactless and insensitive remarks made by Delta’s Chief Executive, Richard Anderson. The unfortunate incident relates back to comments made by a group of American airlines that a number of the larger Gulf carriers had benefited from state subsidies amounting to a figure in excess of US$40bn. As a consequence the American airlines either wanted to renegotiate or scrap the current Open Skies agreement.
Offended by such claims, the Gulf carriers retaliated by questioning whether or not US airlines had received government subsidies totaling US$5bn in the wake of 9/11. Unfortunately Delta’s Anderson, responding to this claim on CNN, said: “It’s a great irony to have the United Arab Emirates from the Arabian Peninsula talk about that, given the fact that our industry was really shocked by the terrorism of 9/11, which came from terrorists from the Arabian Peninsula.” While the UAE and Qatar, two of the States’ allies who have offered either military or logistical support for international operations were particularly upset by these comments, Delta simply made it clear that Anderson had been responding to claims regarding post 9/11 subsidies. “He didn’t mean to suggest the Gulf carriers or their governments are linked to the 9/11 terrorists. We apologize if anyone was offended.”
Unfortunately the largest of the three main Gulf carriers did not see this as acceptable. “We believe that the statements made this week by Mr. Anderson were deliberately crafted and delivered for specific effect,” it confirmed in a statement. However US airlines continue to complain that they have lost significant numbers of bookings since 2008 as a result of Gulf competition and cited documents they indicate demonstrate aid which has allowed their competitors to offer cheap fares. In retaliation, Gulf officials say that most US carriers do not fly the same routes and are losing business only because they offer an inferior service.
This is not a dissimilar situation to the one between Gulf airlines and European carriers, including Lufthansa, and coincidentally has come at the same time as US airlines are trying to have US Exlm Bank closed down. They believe Gulf carriers are benefitting to a greater degree from the export credit agency. The tit-for-tat dialog continues with Western airlines showing concern for the safety of thousands of service industry jobs, a complaint to which Gulf carriers have responded by making it very clear they support at least as many jobs in the aerospace sector with their huge orders for aircraft.

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

February 20, 2015 · 655 Views

Snecma (Safran), a leading manufacturer of aircraft engines, and Hindustan Aeronautics  (HAL), a leading aerospace manufacturer, signed a Memorandum of Understanding (MoU) on January 28th, 2015 in Bangalore to explore establishing a joint venture in India for the production of aero-engine parts.  The proposed joint venture will initially focus on the manufacture of high-tech parts for the Dassault Rafale’s Snecma M88 engine, then subsequently contribute to other major aerospace projects of HAL & Snecma, in India and worldwide. Spanning over 30,000 m², the proposed joint venture’s new plant is expected to benefit from substantial investment by the two partners, providing it with state-of-the-art machinery and equipment. This agreement marks a major step forward in the long-standing collaboration between Snecma and HAL. The proposed joint venture will further broaden the scope of the excellent relations established over the past 60 years between Safran affiliates and the Indian aerospace industry. For example, Snecma manufactures the M53 engines powering the Mirage 2000H “Vajra” fighters operated by the Indian Air Force.

Design flaws led to 787 battery fire

December 2, 2014 · 197 Views

On the 7th January 2013 a fire was reported on board a Boeing 787 Dreamliner while parked at Boston’s airport in the USA. The fire was put down to a problem with one of the plane’s lithium-ion batteries. A week later an All Nippon Airways 787 Dreamliner had to make an emergency landing after smoke was discovered inside the plane which was subsequently traced back to another lithium-ion battery. As a consequence of this incident, all 787 Dreamliners were grounded until April of that year until further acceptable testing and improvements were carried out to the battery system on board the plane. The battery itself was manufactured by GS Yuasa and comprised eight individual cells making up a combined weight of 63lbs.
Nearly two years later and the results of the investigation into the first incident have concluded that the lithium-ion battery installed in the plane should not have received certification by the FAA. The National Transport Safety Board (NTSB) were also critical of Boeing who they believed had erroneously ruled out the chances of thermal runaway in its assessment of the battery’s safety. Boeing’s battery tests to obtain original certification included crushing battery cells, driving nails through them and deliberately introducing short circuits to cause failure. Boeing found “nothing adverse happened” while these tests were carried out, and so deemed the battery’s box and internal protection to be of an acceptable standard. Boeing stated that it had followed the certification process set out by the FAA. It would seem that while the cause of the fire has been clearly identified, responsibility for its occurrence has not been accepted in full by anyone.

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

November 5, 2014 · 164 Views

Back in February this year, Rolls-Royce, the FTSE-100 engine maker, lost over £3bn of its value after shocking the market with its first profits warning in a decade. To announce a second one this October has created considerable concern and Rolls-Royce has decided that over the next 18 months they need to reduce costs by up to £80m a year by axing 2,600 jobs, the majority of which will be in the aerospace sector in Britain and the United States. The focus is on Rolls-Royce’s key Trent engines as they move from the development to the production phase, which consequently requires fewer engineers.
Back in February John Rishton, Rolls-Royce group’s Chief Executive, had admitted that the future was “bumpier than I had expected”, while blaming the current problems on deteriorating economic conditions and a tit-for-tat trade war between the EU and Russia over the Ukrainian crisis which had affected its nuclear and energy business as well as its power-systems unit. This week Rishton has had to admit that “We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last; however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.”
Another consequence of the situation is the unexpected departure of Finance Director, Mark Morris, leaving the company after 27 year without any explanation. He will be replaced by David Smith, who is being promoted from Finance Director of the Rolls-Royce Aerospace division. This second profit warning saw share value fall 11% to 832p, wiping a further £2bn off the company’s value. However, news of the redundancies was well received by investors and the share price rallied by 2%, currently standing at 832p. This is clear confirmation of comments made by Espirito Santo’s analyst, Ed Stacey, who indicated that investors would be expecting a clear message from the new Finance Director and tight control on all finances.

Air France-KLM selects GEnx engines for Boeing 787 fleet

March 25, 2014 · 113 Views

Air France-KLM selected the GEnx-1B engine to power its 25 Boeing 787 Dreamliners and 12 leased 787 aircraft. The total engine order is valued at more than $1.7bn. Air France-KLM and GE Aviation have also signed an agreement that will allow Air France-KLM to offer maintenance, repair and overhaul (MRO) services for the GEnx-1B engine. Under this agreement, Air France-KLM will be licensed to perform maintenance and overhaul work on the GEnx-1B engine and GE will provide technical support and assistance on overhaul workscoping and component repair licenses, comprehensive material support and training.

ILFC closes $1.5bn senior secured term loan

March 7, 2014 · 80 Views

International Lease Finance Corporation (ILFC) has closed a new senior secured term loan of $1.5 billion. The loan will bear interest at LIBOR plus 275 basis points with a 0.75% LIBOR floor, is priced at 99.5% of par value, and will mature in 2021. The collateral used to support the transaction has an initial weighted average age of 9.1 years. It will be secured primarily by a first priority-perfected lien on the equity of certain of ILFC’s subsidiaries, which directly or indirectly own a pool of aircraft and related leases. ILFC plans to use the proceeds for general corporate purposes, including purchasing aircraft and supporting the company’s liquidity cushion.

Airbus Commercial reports another year of financial improvement

February 26, 2014 · 80 Views

In 2013, Airbus achieved a new industry record of 1,619 gross commercial orders (FY 2012: 914 gross orders) with net orders of 1,503 aircraft (FY 2012: 833 net orders), excluding ATR. Gross orders comprised 1,253 A320 Family aircraft, 77 A330s, 239 A350 XWBs and 50 A380s. Fourth-quarter orders included Emirates Airline’s agreement for 50 A380s and Etihad Airways’ order for 50 A350 XWBs, 36 A320neos and one A330-200F. Airbus Military (now part of Airbus Defence and Space) received 17 net orders (FY 2012: 32 net orders). Airbus’ net order intake increased sharply to €202.3bn (FY 2012: €88.9bn). At the end of 2013, Airbus’ consolidated order book was valued at €647.4bn (year-end 2012: €525.5bn). The Airbus Commercial backlog was worth €627.1bn (year-end 2012: €505.3bn), comprising 5,559 Airbus aircraft (year-end 2012: 4,682 units) and representing over eight years of production. Airbus Military’s order book was worth €20.8bn (year-end 2012: €21.1bn). Airbus series aircraft deliveries increased to 626 aircraft (FY 2012: 588 aircraft, including three A330s without revenue recognition). Airbus Military delivered 31 aircraft (FY 2012: 29 aircraft). Airbus’ consolidated revenues increased seven percent to €42,012m (FY 2012: €39,273m), reflecting higher commercial and military aircraft deliveries. The Division’s consolidated EBIT rose to €1,710m (FY 2012: €1,252m). Airbus Commercial’s revenues rose to €39,889m (FY 2012: €37,624m). The Airbus Commercial reported EBIT was €1,595m (FY 2012: €1,147m) with the EBIT before one-off at €2,216m (FY 2012: €1,669m). Airbus Commercial’s EBIT before one-off benefitted from the improved operational performance, including favourable volume, some better pricing and an improvement in A380 losses. It also included higher A350 XWB programme support costs. Revenues at Airbus Military rose to €2,893m (FY 2012: €2,131m), driven by the A400M ramp-up and higher volumes from both light and medium transport planes and tankers. The EBIT at Airbus Military was €166m (FY 2012: €93m).

Boeing Commercial Airplanes reports full year revenue of $53bn

January 29, 2014 · 76 Views

Boeing Commercial Airplanes fourth-quarter revenue increased to $14.7bn and full-year revenue increased to a record $53bn on higher delivery volume. Fourth-quarter operating margin improved to 10.3% and full-year operating margin grew to 10.9% on the higher volume, favorable delivery mix and continued strong operating performance. During the quarter, the company launched the 777X with 259 orders and commitments. During the year, the 787 program completed first flight of the 787-9, successfully launched the 787-10 and began operating at a 10 per month production rate in final assembly. The 737 program delivered at a record production rate of 38 per month and has won nearly 1,800 firm orders for the 737 MAX since launch. In 2013, a record 648 commercial aircraft were delivered. In January 2014, the company reached an eight-year contract extension through 2024 with the International Association of Machinists & Aerospace Workers District 751 (IAM). Commercial Airplanes booked 465 net orders during the quarter and 1,355 during the year. Backlog remains strong with 5,080 airplanes valued at a record $374 billion.

A350 XWB in Bolivia for high altitude testing

January 9, 2014 · 67 Views

The A350 XWB development aircraft, MSN3, is in Bolivia where it will perform a series of tests at the high altitude airfields of Cochabamba and La Paz. Cochabamba is around 8,300 feet above sea level, and La Paz is one of the world’s highest airports at 13,300 feet. Operations at such high altitude airfields are particularly demanding on aircraft engines, Auxiliary Power Unit (APU) and systems. The aim of these trials is to demonstrate and validate the full functionality of engines, systems, materials as well as to assess the overall aircraft behaviour under these extreme conditions. A number of take-offs with all engines operating and with simulated engine failures are being performed at each of the airfields to collect data on engine operating characteristics and validate the aircraft take-off performance. The autopilot behaviour will also be evaluated during automatic landings and go-arounds. Since the A350 XWB’s first flight with MSN1 on June 14th 2013, over 800 flight test hours have been performed in close to 200 test flights by both MSN1 and MSN3. In total the A350 XWB flight test campaign will accumulate around 2,500 flight hours with the fleet of five aircraft. The rigorous flight testing will lead to the certification of the A350-900 by the European EASA and US FAA airworthiness authorities, prior to entry into service in Q4 2014.

Firefly welcomes first ATR 72-600

July 5, 2013 · 66 Views

Firefly, Malaysia Airlines’ subsidiary carrier has taken ownership of its first brand-new ATR 72-600. The aircraft is the first of 20 latest generation firm ATRs, plus 16 options, ordered by Malaysia Airlines in December 2012. Firefly currently operates 12 ATR 72-500s, and with the arrival of the new ATR 72-600s will almost triple its exclusively ATR 72 aircraft fleet, taking the total to over 30 aircraft.

GE’s Passport engine begins first full engine test

June 26, 2013 · 42 Views

Certification testing is underway on the first Passport development engine at GE Aviation’s Peebles Testing Operation in Ohio. The engine began ground testing on June 24th and ran for more than three hours, reaching more than 18,000 lbs. of standard day sea-level takeoff thrust. Eight Passport engines and one core will be involved in the engine certification program. Flight testing on GE’s flying testbed is scheduled for 2014. Engine certification is expected in 2015. The Passport engine certification program follows three years of validation testing. GE Aviation has conducted validation tests on the fan blisk design, including two fan blade-out rig tests, ingestion tests and a fan aero rig test to demonstrate fan efficiency. Testing is complete on the third eCore demonstrator, and GE has accumulated more than 300 hours of testing on eCore demonstrators to date.

Rolls-Royce wins order from CIT to power 23 aircraft

May 22, 2013 · 55 Views

Rolls-Royce has won an order from US leasing company CIT Aerospace for Trent XWB engines, to power ten Airbus A350 XWB aircraft and Trent 700 engines to power 13 Airbus A330 aircraft. The Trent XWB engines will power ten CIT A350 aircraft that were announced in January 2013 which were in addition to five A350 XWB aircraft already on order. The Trent XWB, specifically designed for the Airbus A350, is the fastest selling Trent engine ever, with more than 1,200 already sold. The engine variant that will power the A350-800 and -900 was awarded European Aviation Safety Agency (EASA) type certification in February. The engine will power the first flight of the Airbus A350 XWB this year and the aircraft’s first in-service flight in 2014.

MTU Aero Engines’ supervisory board renews contract with COO Dr. Rainer Martens

July 25, 2013 · 12 Views

MTU Aero Engines AG’s supervisory board voted to extend chief operating officer Dr. Rainer Martens’ contract. Martens has been a member of MTU’s board of management since April 15, 2006, with overall responsibility for engineering and production. The contract renewal is for a term of five years, commencing on April 15, 2014.

Malaysia’s MASwings takes delivery of first ATR 72-600

July 25, 2013 · 14 Views

Malaysia Airlines’ regional subsidiary MASwings took delivery of its very first ATR 72-600 aircraft. The aircraft was delivered in a handover ceremony held at the ATR’s facilities in Toulouse. Malaysia Airlines and ATR inked a deal in late 2012 for the purchase of a total of 36 ATR 72-600s (20 firm orders plus 16 options) to be operated by the airline’s regional subsidiaries, MASwings and Firefly. Based on the agreement between ATR and Malaysia Airlines, MASwings –which currently operates a fleet of 10 ATR 72-500s-, will introduce 9 ATR 72-600s until 2017, mostly for further expanding its total fleet.

Panasonic Avionics and China Telecom Satellite Communications to connect skies over China

July 25, 2013 · 19 Views

Panasonic Avionics has signed a memorandum of understanding (MOU) with China Telecom Satellite Communications to jointly develop, implement and support in-flight connectivity solutions for the Chinese market. The signing of the MOU will also make possible the first ever provision of in-flight connectivity to Panasonic’s 36 non-Chinese customer airlines when flying into and over China. Panasonic Avionics’ eXConnect system uses its global Ku-band aeronautical satellite network to deliver in-flight broadband connectivity, enabling passengers to access the internet, send email or log onto their favourite social media sites.

AEI redelivers first 737-400SF in Dothan Alabama

July 25, 2013 · 17 Views

Aeronautical Engineers has redelivered the first CargoAir 737-400SF 11 Pallet Conversion in Dothan Alabama. The aircraft is a high gross weight 737-400SF, MSN 24474 was built in 1989 and has been placed into service flying for DHL Express from their hub in Leipzig. Additionally, CargoAir operates three AEI 737-300SF 10 Pallet Freighters for DHL Express throughout Europe.

Quantum Control’s dynamic User Interface transforms everyone into a power user

July 25, 2013 · 3 Views

Component Control launched its latest product video revealing its highly flexible and robust user interface that can turn any user into a power user. The interface is designed to give users a quick overview of their detail-rich aviation business with the least amount of clicks possible and without having to move from screen to screen in order to complete a task. The key features of the Quantum navigation include:
a main navigation bar that acts as the gateway into every Quantum module, Hot keys for high-speed Quantum screen navigation, detailed search functionality to easily recall data.

Alaska Air Group reports second quarter 2013 results

July 25, 2013 · 6 Views

Alaska Air Group reported second quarter net income, excluding special items, of $105m compared to adjusted net income of $111m in the prior year quarter. Alaska Air Group recorded net income for the second quarter under Generally Accepted Accounting Principles (GAAP) of $104m compared to net income of $68m in 2012.

Air Methods purchases 150 Appareo Vision 1000 Flight Data Monitoring devices

July 25, 2013 · 7 Views

Air Methods Corporation, a global leader in air medical transportation, has entered into an agreement with Appareo Systems to purchase 150 Vision 1000 flight data monitoring (FDM) devices. These devices will allow Air Methods to capture a variety of critical flight data and then analyze the data as part of its FDM program. The Company currently has 41 aircraft equipped with Appareo flight data recorders.

Airbus Managed Inventory goes operational at Aeroman

July 25, 2013 · 16 Views

Aeroman, a leading Maintenance, Repair and Overhaul (MRO) organization in the Americas has started operations with the Airbus Managed Inventory (AMI) service. AMI is an automated system which continuously ensures the automatic replenishment of high-usage and non-repairable Airbus parts. With a modern facility located at El Salvador International Airport, Aeroman provides maintenance services to A320 family operators from North and South America, who will all benefit from AMI. Aeroman has been providing world-class heavy maintenance repairs and avionics and interiors modification programs for 30 years. It employs a workforce of about 2,100 full time employees with its technical personnel being El Salvador’s CAA, FAA or EASA certified.

Bombardier CSeries aircraft first flight to take place in the coming weeks

July 25, 2013 · 10 Views

Bombardier Aerospace confirmed that the integration of the CSeries aircraft’s auxiliary power unit and Pratt & Whitney PurePower Geared Turbofan PW1500G engines on the first flight test vehicle (FTV1) is running smoothly, allowing for testing of the aircraft’s key systems. It also confirmed that the latest software upgrades on the aircraft continue to be successfully completed. The CSeries aircraft’s overall integration is progressing well; however, the highly technical last steps are taking more time than initially anticipated to validate the overall systems and ongoing software integration. First flight is expected to occur in the coming weeks.

“While the process has taken more time than we had expected, we are pleased with the results and are very comfortable taking more time to ensure the required integration is finalized and the CSeries aircraft is cleared for its first flight,” added Mr. Arcamone.

While in its final testing stage in preparation for first flight, FTV1 is undergoing important and complex pre-flight tests, including aircraft in the loop testing (ACIL). During ACIL tests, FTV1 is “flown” on the ground in a simulated flight environment to ensure the first aircraft behaves in the same manner as experienced with the on-the-ground Complete Integrated Aircraft Systems Test Area (CIASTA), also known as “Aircraft 0.” This will be followed by low- and high-speed taxiing.

GA Innovation China performs first aircraft disassembly in Beijing, China

July 26, 2013 · 19 Views

GA Innovation China, the newly formed joint venture between GA Telesis and Air China, celebrated together with Beijing Capital International Airport Co. and Aircraft Maintenance and Engineering Corporation (“AMECO”) the start of their first commercial aircraft teardown project involving a Boeing 747-400 aircraft acquired from Air China. All three parties held a ceremony alongside the 747 aircraft in AMECO’s main hangar to kick off the teardown project and sign the airframe sale agreement between GAIC and BCIA. The aircraft will be disassembled by AMECO and the engines will be exported to the United States. GAIC will select parts derived from the disassembly and warehouse them in Beijing for sale in both China and the rest of the world. The remaining airframe has been sold by GAIC to BCIA for utilization in fire department and security drills.

United announces second-quarter 2013 profit

July 26, 2013 · 11 Views

For the second quarter, total revenue was $10.0bn, an increase of 0.6% compared to the same period in 2012. Second-quarter consolidated passenger revenue decreased 1.1% year-over-year to $8.7bn, on a consolidated capacity decrease of 2.1% year-over-year. Cargo and other revenue in the second quarter increased 13.8% versus the second quarter of 2012, or $162m, to $1.3bn. Consolidated revenue passenger miles (RPMs) decreased 1.7% on a consolidated capacity decrease of 2.1% year-over-year in the second quarter, resulting in a consolidated load factor of 84.7%, the highest second-quarter consolidated load factor in United’s history.

Southwest Airlines reports second quarter net income of $224m

July 26, 2013 · 13 Views

Southwest Airlines reported second quarter 2013 net income was $224m, which included $50m (net) of unfavorable special items. This compared to net income of $228m in second quarter 2012, which included $45m (net) of unfavorable special items. Excluding special items, second quarter 2013 net income was a record $274m compared to $273m in second quarter 2012.

Spirit AeroSystems announces workforce reductions in Kansas and Oklahoma

July 26, 2013 · 11 Views

Spirit AeroSystems released that approximately 360 salaried support and management employees at its Kansas and Oklahoma facilities are receiving layoff notices. The company is offering affected employees severance benefits and career transition services. This action is a strategic move to make the company more competitive in a cost-sensitive environment, and results from an ongoing workforce assessment designed to reduce overhead costs, increase efficiency and drive improved performance.

Republic Airways’second quarter 2013 net income up 23%

July 26, 2013 · 20 Views

Republic Airways reported diluted earnings per share of $0.46, which is a 15.0% increase from the $0.40 per diluted share result in the second quarter of 2012. Net income increased 23.0% to $24.6m for the qu arter ended June 30, 2013, compared to net income of $20.0m for the same period last year. Operating revenues totaled $664.4m, a decrease of 8.7%, compared to $728.1m for the second quarter of 2012.

Safran reports strong progress for first-half 2013 results

July 26, 2013 · 12 Views

Safran delivered strong progress in performance in first-half 2013. For first-half 2013, Safran’s revenue was €7,066m, compared to €6,413m in the same period a year ago, a 10.2% year-on-year increase (9.7% organic growth). First-half 2013 revenue increased by €653m on a reported basis, notably highlighting a good performance in aerospace (both organic and from acquisitions). On an organic basis, revenue increased by €621m as a result of record production rates in aerospace original equipment, as well as favourable aftermarket trends. Avionics and biometric identification activities also contributed to this performance. Organic revenue was determined by applying constant exchange rates and by including the revenue in 2013 of acquired activities only for the comparable periods to the period in 2012 for which they are included in 2012 reported revenue. Adjusted net income – group share grew by 59% year-over-year. It was €658m compared to €414m in first-half 2012 (restated).

Embraer releases second quarter 2013 results

July 26, 2013 · 17 Views

In the second quarter of 2013 Embraer delivered 22 commercial and 29 executive (23 light and 6 large) jets; the Company’s firm order backlog grew to US$17.1bn, reaching its highest level since the third quarter of 2009, mainly as a result of significant orders in the Commercial aviation segment. As a result of aircraft deliveries, coupled with revenues from the Company’s growing Defense & Security business, 2Q13 revenues reached US$1,557.0m and gross margin was 23.1% for the period. 2Q13 net loss totaled US$-5.3m primarily as a result of deferred income taxes generated by the appreciation of the US Dollar during the period, which negatively impacted 2Q13 net income. Therefore, 2Q13 adjusted net income, excluding deferred income taxes, was US$91.8m.