Friday, September 20, 2013
AviTrader Daily Aviation News Alert
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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.
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.
December 2, 2014 · 195 Views
On the 7th January 2013 a fire was reported on board a Boeing 787 Dreamliner while parked at Boston’s airport in the USA. The fire was put down to a problem with one of the plane’s lithium-ion batteries. A week later an All Nippon Airways 787 Dreamliner had to make an emergency landing after smoke was discovered inside the plane which was subsequently traced back to another lithium-ion battery. As a consequence of this incident, all 787 Dreamliners were grounded until April of that year until further acceptable testing and improvements were carried out to the battery system on board the plane. The battery itself was manufactured by GS Yuasa and comprised eight individual cells making up a combined weight of 63lbs.
Nearly two years later and the results of the investigation into the first incident have concluded that the lithium-ion battery installed in the plane should not have received certification by the FAA. The National Transport Safety Board (NTSB) were also critical of Boeing who they believed had erroneously ruled out the chances of thermal runaway in its assessment of the battery’s safety. Boeing’s battery tests to obtain original certification included crushing battery cells, driving nails through them and deliberately introducing short circuits to cause failure. Boeing found “nothing adverse happened” while these tests were carried out, and so deemed the battery’s box and internal protection to be of an acceptable standard. Boeing stated that it had followed the certification process set out by the FAA. It would seem that while the cause of the fire has been clearly identified, responsibility for its occurrence has not been accepted in full by anyone.
November 5, 2014 · 162 Views
Back in February this year, Rolls-Royce, the FTSE-100 engine maker, lost over £3bn of its value after shocking the market with its first profits warning in a decade. To announce a second one this October has created considerable concern and Rolls-Royce has decided that over the next 18 months they need to reduce costs by up to £80m a year by axing 2,600 jobs, the majority of which will be in the aerospace sector in Britain and the United States. The focus is on Rolls-Royce’s key Trent engines as they move from the development to the production phase, which consequently requires fewer engineers.
Back in February John Rishton, Rolls-Royce group’s Chief Executive, had admitted that the future was “bumpier than I had expected”, while blaming the current problems on deteriorating economic conditions and a tit-for-tat trade war between the EU and Russia over the Ukrainian crisis which had affected its nuclear and energy business as well as its power-systems unit. This week Rishton has had to admit that “We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last; however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.”
Another consequence of the situation is the unexpected departure of Finance Director, Mark Morris, leaving the company after 27 year without any explanation. He will be replaced by David Smith, who is being promoted from Finance Director of the Rolls-Royce Aerospace division. This second profit warning saw share value fall 11% to 832p, wiping a further £2bn off the company’s value. However, news of the redundancies was well received by investors and the share price rallied by 2%, currently standing at 832p. This is clear confirmation of comments made by Espirito Santo’s analyst, Ed Stacey, who indicated that investors would be expecting a clear message from the new Finance Director and tight control on all finances.
March 25, 2014 · 111 Views
Air France-KLM selected the GEnx-1B engine to power its 25 Boeing 787 Dreamliners and 12 leased 787 aircraft. The total engine order is valued at more than $1.7bn. Air France-KLM and GE Aviation have also signed an agreement that will allow Air France-KLM to offer maintenance, repair and overhaul (MRO) services for the GEnx-1B engine. Under this agreement, Air France-KLM will be licensed to perform maintenance and overhaul work on the GEnx-1B engine and GE will provide technical support and assistance on overhaul workscoping and component repair licenses, comprehensive material support and training.
March 7, 2014 · 78 Views
International Lease Finance Corporation (ILFC) has closed a new senior secured term loan of $1.5 billion. The loan will bear interest at LIBOR plus 275 basis points with a 0.75% LIBOR floor, is priced at 99.5% of par value, and will mature in 2021. The collateral used to support the transaction has an initial weighted average age of 9.1 years. It will be secured primarily by a first priority-perfected lien on the equity of certain of ILFC’s subsidiaries, which directly or indirectly own a pool of aircraft and related leases. ILFC plans to use the proceeds for general corporate purposes, including purchasing aircraft and supporting the company’s liquidity cushion.
February 26, 2014 · 78 Views
In 2013, Airbus achieved a new industry record of 1,619 gross commercial orders (FY 2012: 914 gross orders) with net orders of 1,503 aircraft (FY 2012: 833 net orders), excluding ATR. Gross orders comprised 1,253 A320 Family aircraft, 77 A330s, 239 A350 XWBs and 50 A380s. Fourth-quarter orders included Emirates Airline’s agreement for 50 A380s and Etihad Airways’ order for 50 A350 XWBs, 36 A320neos and one A330-200F. Airbus Military (now part of Airbus Defence and Space) received 17 net orders (FY 2012: 32 net orders). Airbus’ net order intake increased sharply to €202.3bn (FY 2012: €88.9bn). At the end of 2013, Airbus’ consolidated order book was valued at €647.4bn (year-end 2012: €525.5bn). The Airbus Commercial backlog was worth €627.1bn (year-end 2012: €505.3bn), comprising 5,559 Airbus aircraft (year-end 2012: 4,682 units) and representing over eight years of production. Airbus Military’s order book was worth €20.8bn (year-end 2012: €21.1bn). Airbus series aircraft deliveries increased to 626 aircraft (FY 2012: 588 aircraft, including three A330s without revenue recognition). Airbus Military delivered 31 aircraft (FY 2012: 29 aircraft). Airbus’ consolidated revenues increased seven percent to €42,012m (FY 2012: €39,273m), reflecting higher commercial and military aircraft deliveries. The Division’s consolidated EBIT rose to €1,710m (FY 2012: €1,252m). Airbus Commercial’s revenues rose to €39,889m (FY 2012: €37,624m). The Airbus Commercial reported EBIT was €1,595m (FY 2012: €1,147m) with the EBIT before one-off at €2,216m (FY 2012: €1,669m). Airbus Commercial’s EBIT before one-off benefitted from the improved operational performance, including favourable volume, some better pricing and an improvement in A380 losses. It also included higher A350 XWB programme support costs. Revenues at Airbus Military rose to €2,893m (FY 2012: €2,131m), driven by the A400M ramp-up and higher volumes from both light and medium transport planes and tankers. The EBIT at Airbus Military was €166m (FY 2012: €93m).
January 29, 2014 · 74 Views
Boeing Commercial Airplanes fourth-quarter revenue increased to $14.7bn and full-year revenue increased to a record $53bn on higher delivery volume. Fourth-quarter operating margin improved to 10.3% and full-year operating margin grew to 10.9% on the higher volume, favorable delivery mix and continued strong operating performance. During the quarter, the company launched the 777X with 259 orders and commitments. During the year, the 787 program completed first flight of the 787-9, successfully launched the 787-10 and began operating at a 10 per month production rate in final assembly. The 737 program delivered at a record production rate of 38 per month and has won nearly 1,800 firm orders for the 737 MAX since launch. In 2013, a record 648 commercial aircraft were delivered. In January 2014, the company reached an eight-year contract extension through 2024 with the International Association of Machinists & Aerospace Workers District 751 (IAM). Commercial Airplanes booked 465 net orders during the quarter and 1,355 during the year. Backlog remains strong with 5,080 airplanes valued at a record $374 billion.
January 9, 2014 · 65 Views
The A350 XWB development aircraft, MSN3, is in Bolivia where it will perform a series of tests at the high altitude airfields of Cochabamba and La Paz. Cochabamba is around 8,300 feet above sea level, and La Paz is one of the world’s highest airports at 13,300 feet. Operations at such high altitude airfields are particularly demanding on aircraft engines, Auxiliary Power Unit (APU) and systems. The aim of these trials is to demonstrate and validate the full functionality of engines, systems, materials as well as to assess the overall aircraft behaviour under these extreme conditions. A number of take-offs with all engines operating and with simulated engine failures are being performed at each of the airfields to collect data on engine operating characteristics and validate the aircraft take-off performance. The autopilot behaviour will also be evaluated during automatic landings and go-arounds. Since the A350 XWB’s first flight with MSN1 on June 14th 2013, over 800 flight test hours have been performed in close to 200 test flights by both MSN1 and MSN3. In total the A350 XWB flight test campaign will accumulate around 2,500 flight hours with the fleet of five aircraft. The rigorous flight testing will lead to the certification of the A350-900 by the European EASA and US FAA airworthiness authorities, prior to entry into service in Q4 2014.
July 5, 2013 · 64 Views
Firefly, Malaysia Airlines’ subsidiary carrier has taken ownership of its first brand-new ATR 72-600. The aircraft is the first of 20 latest generation firm ATRs, plus 16 options, ordered by Malaysia Airlines in December 2012. Firefly currently operates 12 ATR 72-500s, and with the arrival of the new ATR 72-600s will almost triple its exclusively ATR 72 aircraft fleet, taking the total to over 30 aircraft.
June 26, 2013 · 40 Views
Certification testing is underway on the first Passport development engine at GE Aviation’s Peebles Testing Operation in Ohio. The engine began ground testing on June 24th and ran for more than three hours, reaching more than 18,000 lbs. of standard day sea-level takeoff thrust. Eight Passport engines and one core will be involved in the engine certification program. Flight testing on GE’s flying testbed is scheduled for 2014. Engine certification is expected in 2015. The Passport engine certification program follows three years of validation testing. GE Aviation has conducted validation tests on the fan blisk design, including two fan blade-out rig tests, ingestion tests and a fan aero rig test to demonstrate fan efficiency. Testing is complete on the third eCore demonstrator, and GE has accumulated more than 300 hours of testing on eCore demonstrators to date.
May 22, 2013 · 53 Views
Rolls-Royce has won an order from US leasing company CIT Aerospace for Trent XWB engines, to power ten Airbus A350 XWB aircraft and Trent 700 engines to power 13 Airbus A330 aircraft. The Trent XWB engines will power ten CIT A350 aircraft that were announced in January 2013 which were in addition to five A350 XWB aircraft already on order. The Trent XWB, specifically designed for the Airbus A350, is the fastest selling Trent engine ever, with more than 1,200 already sold. The engine variant that will power the A350-800 and -900 was awarded European Aviation Safety Agency (EASA) type certification in February. The engine will power the first flight of the Airbus A350 XWB this year and the aircraft’s first in-service flight in 2014.
September 18, 2013 · 21 Views
AJW Aviation, the independent complete aircraft spares support specialist, has been selected by African airline Skypower Express Airways Nigeria to provide power-by-the-hour support to its B737-300 Classic cargo aircraft. This is AJW’s first PBH contract with the airline and will provide support to the aircraft over the next three years. This contract is one of over 400 aircraft that AJW currently has under PBH or pooling globally. AJW will support Skypower Express Airways Nigeria from its network of strategic hubs across Europe and the rest of the world, which comprise over 420,000 service ready Boeing and Airbus component inventories valued at over $450m.
September 18, 2013 · 11 Views
The first two Sukhoi Superjet 100 operated by the Mexican airline Interjet successfully performed the first revenue flights on September 18th, 2013. The aircraft MSN 95023 and MSN 95024, took off from Mexico City airport (MEX). On the first day of their operations, the first two Interjet SSJ100s will perform 8 commercial flights each from Mexico City airport to other Mexican destinations as Campeche, Minatitlan, Zacatecas and Mazatlan.
September 18, 2013 · 11 Views
The Boeing 787-9 Dreamliner took to the skies for the first time on September 17th, beginning a comprehensive flight-test program leading to certification and delivery in mid-2014. With its distinctive new Boeing livery, the newest member of the efficient 787 family completed a 5-hour, 16-minute flight. Powered by two Rolls-Royce Trent 1000 engines, the first 787-9 will be joined in flight test by two additional airplanes, one of which will feature General Electric GEnx engines. Those airplanes are in the final stages of assembly in Boeing’s Everett factory. Over the coming months, the fleet will be subjected to a variety of tests and conditions to demonstrate the safety and reliability of the airplane’s design.
September 18, 2013 · 14 Views
Air Canada announced the appointment of Kevin Howlett, currently Senior Vice President, Employee Relations, to the new position of Senior Vice President, Regional Markets with overall responsibility for the strategic direction of Air Canada’s regional operations and the relationship with current and future regional carriers operating on its behalf. Arielle Meloul-Wechsler, currently Senior Director, Human Resources, is promoted to the new position of Vice President, Human Resources. In this role, Arielle will assume responsibility for all aspects of Human Resources with the exception of Labour Relations, which continues to be the responsibility of Scott Morey , Vice President, Labour Relations.
September 18, 2013 · 19 Views
AAR has signed a long-term contract with aviation electronics manufacturer Rockwell Collins, which will provide component repair support for Rockwell Collins products used by AAR’s growing portfolio of airline customers under long-term component support agreements. The contract covers products on AAR customer fleets including the Airbus A319, A320, A330, Boeing 737 and 767, and Bombardier CRJ platforms. Under the terms of the agreement, Rockwell Collins, a subcontractor to AAR, will perform the work at a fixed price-per-flight-hour rate, lowering end costs to the customer and expediting administrative processing and turnaround times.
September 18, 2013 · 16 Views
Triumph Group reported that it expects to record pre-tax additional program costs during fiscal year 2014 totaling approximately $68.0m, primarily associated with the 747-8 program. Of the total incremental costs, approximately $44.0m, will be included in the company’s second quarter fiscal year 2014 financial results. The company expects that approximately $11.0m will be reflected in third quarter fiscal year 2014 and the remaining $13.0m will be included in the fourth quarter fiscal year 2014 financial results. The number of shares used in computing diluted earnings per share was approximately 53.0m shares. These amounts have resulted from reductions to the profitability estimates of the company’s current 747-8 production lot, which will be approximately 80% completed by the end of the company’s second quarter fiscal year 2014 and is expected to be nearly 100% completed by the end of the third quarter fiscal year 2014. As a result of the current cost levels, the expected profitability on the next production lot, which will begin delivery in the fourth quarter of fiscal year 2014, was also decreased. Both current and future production lots are expected to be profitable and not result in loss reserves.
September 18, 2013 · 28 Views
AWAS has delivered a fourth new Boeing 737-800 passenger aircraft from its new order pipeline to Solaseed Air in Japan. AWAS was the first lessor to work with Solaseed and helped to develop a fleet solution to enable the airline to move into new generation 737-800s. AWAS is one of the largest and most established lessors in Japan, having supported Japanese airlines growth for over 15 years.
September 19, 2013 · 14 Views
Liebherr-Aerospace supplies two major systems, the complete landing gear system and the integrated air management system, for Bombardier’s CSeries aircraft, which successfully made its historic, maiden flight on September 16, 2013. These systems feature the latest technologies for the next generation of single-aisle aircraft, thus offering improved reliability and operational performance. Liebherr took advantage of its vast experience in landing gears and air management systems for commercial aircraft to optimize the operating costs and the reliability of its systems for the CSeries aircraft. The systems are designed, developed and manufactured by Liebherr-Aerospace’s German- and French-based OEM facilities: Lieberr-Aerospace Lindenberg GmbH, Lindenberg (Germany), is responsible for the CSeries landing gear, whereas Liebherr-Aerospace Toulouse SAS, Toulouse (France), is in charge of the air management system.
September 19, 2013 · 17 Views
GE Capital Aviation Services and Boeing completed an order for 10 787-10 Dreamliners. The order completes the commitment originally announced during the 2013 Paris Air Show in June and builds momentum in the airplane leasing market for the 787-10. The GECAS deliveries begin in 2019.
September 19, 2013 · 26 Views
IFE Services, one of the leading in-flight entertainment (IFE) companies, has been retained by Thomson Airways as its content service provider. IFE Services has been Thomson Airways’ IFE supplier for over five years and will now continue to provide the airline with a rich content mix of Blockbuster Hollywood movies, TV programmes, radio channels and music albums. The content will be available for passengers to enjoy across the airline’s fleet of B767 and B787 aircraft. IFE Services will also manage all of the airline’s digital encoding and AVOD file management requirements. To promote the available IFE onboard to passengers, IFE Services will produce a printed entertainment guide.
September 19, 2013 · 20 Views
Boeing will complete production of the C-17 Globemaster III and close the C-17 final assembly facility in Long Beach, Calif. in 2015. “Ending C-17 production was a very difficult but necessary decision,” said Dennis Muilenburg, president and chief executive officer of Boeing Defense, Space & Security. Boeing will continue after-delivery support of the worldwide C-17 fleet as part of the C-17 Globemaster III Integrated Sustainment Program (GISP) Performance-Based Logistics agreement. The GISP “virtual fleet” arrangement provides the highest airlift mission-capable rate at one of the lowest costs per flying hour.
September 19, 2013 · 15 Views
Spirit Airlines has appointed John Bendoraitis as its senior vice president and chief operating officer. Beginning mid-October, John will be responsible for leading Spirit’s flight operations, inflight, technical services/maintenance, airport operations, safety, and supply chain/operations support departments.
September 19, 2013 · 13 Views
Boeing and Air Lease Corporation have completed an order for 30 787-10 and three 787-9 Dreamliners. The order, valued at $9.4bn at list prices, fulfills the commitment originally announced during the 2013 Paris Air Show in June.
September 19, 2013 · 13 Views
Etihad Airways, the national carrier of the United Arab Emirates, will greatly increase options for travel to and from India, introducing more flights and wide-bodied jets by the end of this year, and further increases and new routes next year, subject to regulatory approval. From November 1st this year, Etihad Airways plans to more than triple the number of seats it now offers on the prime Abu Dhabi – Mumbai and Abu Dhabi – New Delhi routes, reflecting the growing importance of the Indian market, and delivering significant economic benefits to the economies of India and Abu Dhabi. Enriching the expanded schedules will be new connection opportunities between Etihad’s global network and its expanded Indian services, via the airline’s Abu Dhabi hub.
September 19, 2013 · 44 Views
Following a recommendation by the Deutsche Lufthansa AG Executive Board headed by Dr Christoph Franz, the Supervisory Board approved the purchase of 59 ultra-modern aircraft for the Group at its meeting on September 18th. 34 Boeing 777-9Xs and 25 Airbus A350-900s will be added to the Lufthansa Group’s wide-body fleet. The first of these new aircraft will be delivered as early as 2016. Older Boeing 747-400s and Airbus A340-300s will be phased out by 2025. The new aeroplanes will primarily serve to replace existing aircraft at Lufthansa. The investment amount for the Lufthansa Group’s latest order totals €14bn at list prices and is the largest single private-sector investment in the history of German industry. The new aircraft will be operated by ultra-modern, powerful, low-noise engines – the Airbus A350 by the Rolls-Royce ‘Trent XWB 84′ engine and the Boeing 777-9X by General Electric’s ‘GE-9X’ model. The noise footprint of the new models will be at least 30% lower than today’s aircraft. “This investment will safeguard about 13,000 jobs at Lufthansa alone as well as thousands of jobs at our partners in aviation and other suppliers”, said Christoph Franz, Chairman of the Executive Board and CEO of the Lufthansa Group, explaining the macroeconomic significance of the investment at a press conference in Frankfurt. This investment in new technology, efficiency and customer comfort is a continuation of the ongoing fleet modernisation that is taking place at the Group’s airlines. Lufthansa operates a wide-body fleet of around 107 aircraft, among them ten ultra-modern Airbus A380s and nine Boeing 747-8s as well as the Airbus A330-300 (18 aircraft). The fleet also includes Airbus A340s (48) and Boeing 747-400s (22). In addition to these, the Group subsidiary Swiss has 31 wide-body aeroplanes, while Austrian Airlines’ wide-body fleet consists of 12 aircraft.
September 19, 2013 · 9 Views
Experienced industry executive Mark Kelly has been appointed Vice President – Marketing at Lease Corporation International (LCI). With a particular focus on the Europe, Middle East and Africa regions, he brings his combined years as a senior executive in the sector as well as his extensive helicopter piloting experience to both LCI and its leasing customers. Joining this week, Mr Kelly will be based in the firm’s Dublin office with a remit to cover both helicopter marketing and business development.
September 19, 2013 · 20 Views
Kelly Aviation Center Montreal, a Lockheed Martin Canada division, has signed its first six contracts to perform aircraft engine maintenance for airlines, charter airlines, aircraft brokers, and aftermarket suppliers. The announcement was part of the facility’s grand opening celebration that was attended by local and provincial government officials and business leaders, current and potential customers and suppliers, Lockheed Martin executives and Kelly’s 95 employees and contractors hired so far this year. Kelly Aviation Center Montreal performs a complete range of services on the CF34 and CFM56 engine families, the engines that power the regional Embraer and Canadian RJ jets and the Airbus 320 family, respectively. The facility is part of Lockheed Martin Aeronautics’ engine maintenance, repair and overhaul line of business, which includes Kelly Aviation Center, a Lockheed Martin affiliate based in San Antonio, Texas.