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Wednesday, August 21, 2013

AviTrader Daily Aviation News Alert

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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.


Acro Aircraft Seating to equip Mango Airlines of South Africa entire Boeing 737-800 fleet

August 19, 2013 · 26 Views

UK-based passenger aircraft seat manufacturer Acro Aircraft Seating has secured a contract to manufacture and install its Ultra R seats aboard Mango Airlines entire fleet of Boeing 737-800 aircraft. The deal which includes six shipsets and equates to 1116 economy class seats, marks the first major African client for the Redhill, Surrey-based manufacturer. Distinguished by an ultra-light weight and slim seatback design, the UItra R seats on the first newly re-fitted Boeing 737-800 entered service mid-August with the second aircraft to follow on August 31st. Acro Aircraft Seating is currently in negotiations with Mango Airlines for an additional two shipsets due for completion in 2014. According to Mango Airlines, South Africa’s state-run, low cost airline, based in Johannesburg, it selected Acro’s Ultra R seat as it offered the most passenger space, comfort and weight savings of all those it tested. Crucially, the weight savings of approximately 800kg per aircraft will help the airline improve fuel efficiency, reduce CO2 emissions and realise significant cost savings.


Boeing and ILFC deliver first 787 Dreamliner to Aeromexico

August 19, 2013 · 15 Views

Boeing delivered the first 787 Dreamliner to Mexico City-based Aeromexico. The airplane is the first of nine 787-8 airplanes that Aeromexico will operate, including five on lease from ILFC. The airline will operate a total of 19 Dreamliners, including 10 787-9 models ordered last year.


Erickson Air-Crane signs MRO contract with Helicopter Transport Services

August 19, 2013 · 28 Views

Erickson Air-Crane, a leading global provider of aviation services to a diverse mix of commercial and government customers, has received a contract from Helicopter Transport Services (HTS) to perform modifications and upgrades on seven CH54B tail boom and pylon assemblies. The total value of the contract is approximately $1.5m, and advanced engineering and technical work is already underway. The Company noted that modifications and upgrades performed by Erickson will extend life limits on critical components.


AgustaWestland to expand facilities in Brazil

August 19, 2013 · 37 Views

AgustaWestland released that its Brazilian subsidiary, AgustaWestland Do Brasil, is to undergo a major expansion with the building of a new facility in Sao Paulo, which will include maintenance hangars with space that could accommodate a helicopter final assembly line, training centre, bonded warehouse, workshops and other supporting services including a dedicated heliport. Construction of the new facility is scheduled to be completed by the end of 2014. Daniele Romiti, CEO, AgustaWestland, announcing the plan at LABACE in Sao Paulo said “Brazil is a very important and growing market for AgustaWestland, so it gives me great pleasure to be able to announce this plan as we continue to grow our business not only in Brazil but throughout Latin America. This new larger facility will enable us to grow our industrial presence and to potentially assemble helicopters in Brazil, demonstrating our long term commitment to the region and our customers.”


OHI Group takes delivery of three AW139 Helicopters

August 19, 2013 · 21 Views

OHI Group took delivery of three AW139 helicopters equipped for offshore transportation on August 8th, 2013 at the AgustaWestland Philadelphia factory in the USA. The aircraft are now being self ferried from Philadelphia to Brazil where they will enter service later this month. This latest delivery brings the total number of AW139 helicopters in service with OHI Group to seven, with a further two aircraft on order as part of a multi-year contract.


Delta taps Mike Medeiros to head Seattle

August 19, 2013 · 31 Views

Delta Air Lines has named Mike Medeiros vice president – Seattle effective Sept. 1, 2013, as Delta continues to expand its international gateway in this key business market. Medeiros will have responsibility for managing Delta’s overall Seattle strategy, which encompasses expanding airport operations, alliance partnerships, such as Alaska Airlines, corporate customers and government and community involvement.


Adria Airways completes sale of one of their CRJ-200s

August 20, 2013 · 23 Views

Adria Airways has just completed the sale of one of their CRJ-200s to the Kazakhstan airline, SCAT Air Company of Shykment, Kazakhstan. The 2005-vintage aircraft, serial number 8010, is powered by General Electric CF34-3B1 engines. The deal was arranged by Cabot Aviation.


GA Telesis increases new generation material portfolio with acquisition of Boeing 737NG for dismantle

August 20, 2013 · 34 Views

GA Telesis has purchased a Boeing 737-700 (CFM56-7B) (ex Gol Airlines) MSN 30273 aircraft for dismantle. The aircraft has entered the GA Telesis disassembly production line in the USA, and the aircraft component sales efforts will be led by the GA Telesis supply chain and global sales teams respectively. GA Telesis continues to analyze global material demand and realizes the opportunities within the aftermarket for new generation material. “Having 737NG material available for sale not only gives us a competitive advantage, but also provides further support to our existing customer base with varying fleets” said Paul Lochab, Senior Vice President of Global Sales & Operations.


Sparton to acquire Aydin Displays

August 20, 2013 · 29 Views

Sparton Aydin has entered into a definitive purchase agreement to acquire certain assets and liabilities of Aydin Displays, an $18m revenue business, in an all-cash transaction. Aydin Displays, a subsidiary of Video Display Corp., located in Birdsboro, Pennsylvania, develops enhanced flat panel display and touch-screen solutions with application-critical performance criteria including ruggedization, high resolution, color accuracy, response/refresh times, sunlight readability and other criteria such as magnetic interference and noise/TEMPEST emissions for the Military & Aerospace and Civil Marine. These products are currently specified in the P8A behind-the-cockpit control center, the command and control centers of many U.S. Navy ships, FAA air traffic control systems, and cockpit command centers for various civil marine applications. Once the transaction is complete, the company will continue to operate as Aydin Displays.


Linda P. Hudson, president and CEO of BAE Systems announced plan to retire

August 20, 2013 · 25 Views

Linda P. Hudson, president and CEO of BAE Systems, since 2009, has announced her plan to retire from the company following a distinguished career in the defense industry. To ensure a seamless transition, Hudson has agreed to remain in post through the first quarter 2014. At that time, she will also step down from her positions as executive director of the BAE Systems plc Board and as a member of the Company’s Executive Committee. She will remain on the BAE Systems Board as an outside director through April 2015.


Rockwell Collins signs service and supply agreement with the Mubadala Aerospace MRO network

August 20, 2013 · 43 Views

SR Technics and ADAT, both members of the Mubadala Aerospace MRO network, have signed an agreement with Rockwell Collins to support Boeing 787 Dreamliner operators. Under this agreement, Rockwell Collins will grant the MRO network access to its spares, services and support around the world. Rockwell Collins provides the 787 Dreamliner’s flight deck displays, crew alerting system, pilot controls, communication and surveillance systems, and common data network. The company will guarantee a seamless global availability of spares through the supply and maintenance of these systems to SR Technics and ADAT.


Air Canada opens state-of-the-art global operations centre in Brampton, Ontario

August 20, 2013 · 37 Views

Air Canada announced the opening of a new state-of-the-art global Operations Centre (OC) in Brampton, Ontario which is expected to significantly improve its operational capabilities and efficiencies. The new facility is the result of a two-year, $60-million project and will serve as the central control for the airline’s operations, with 400 employees overseeing, on a 24/7 basis, nearly 600 Air Canada flights each day. The new, 75,000-ft² facility has been completed on-time and within budget. It will be fully operational in the first quarter of 2014 following a period of testing, training and transition. Once in service, it will become the global nerve centre for Air Canada’s operations ensuring delivery of Air Canada’s schedule and safe transport of approximately 35 million Air Canada customers annually. Air Canada maintains its corporate headquarters in Montreal, Quebec where it employs more than 5,000 people.