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Friday, October 18, 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.


ARGUS retained by Nextant Aerospace for research initiative

October 16, 2013 · 9 Views

ARGUS International, Inc’s Market Intelligence division has been retained by Nextant Aerospace to conduct research designed to validate their next product launch. After extensive internal analysis of their future aircraft platforms, Nextant specifically tasked ARGUS with reviewing the viability of the entry level market place. Nextant Aerospace is recognized as the first company in the world to introduce aircraft remanufacturing to the business jet market. The Nextant 400XTi is a completely rebuilt Beechjet 400A/XP with Williams FJ44-3AP engines and the Rockwell Collins Pro Line 21 integrated avionics suite.


Japan approves Finnair’s inclusion in joint business between Japan Airlines and British Airways

October 16, 2013 · 2 Views

Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has granted anti-trust immunity to a joint business between Japan Airlines, Finnair and British Airways. This paves the way for Finnair to join the existing joint business between Japan Airlines and British Airways. The agreement will allow all three airlines to cooperate commercially on flights between Europe and Japan. The new joint business is expected to be launched next spring. The addition of Finnair will further enhance customer benefits by providing better links between the EU and Japan, with more flight choices and enhanced frequent flyer benefits. In addition, this new joint business will allow the three airlines to cooperate on expanding their presence within, to and from this important and growing market.


MTU Maintenance Dallas opens new facility and signs contracts for engine storage

October 16, 2013 · 26 Views

MTU Maintenance Dallas, MTU Maintenance’s center of excellence for on-wing and on-site services, has moved to a new facility thereby expanding its engine maintenance business and associated storage capacity. The new building has a floor space of 3,800 m² – more than three times the size of the old shop – and six engine maintenance bays as well as the capacity to store up to fifteen engines. The opening of the new facility is accompanied by additional contracts which MTU Maintenance Dallas has recently signed with a major low-cost carrier based in the US as well as with a European engine lessor. The contracts include engine storage and housekeeping services and establish the fundament for further development of MTU Maintenance Dallas’ services while securing capacity utilization for the coming years. The new building is conveniently located close to Dallas/Fort Worth International Airport and fully air-conditioned providing the capability to store any engine type. Further the new shop offers MTU Maintenance Dallas the best scaffolding to minimize down-time and to support customers with full-service on-time maintenance solutions.


ATI and Boeing extend and expand long-term titanium products supply agreement

October 16, 2013 · 13 Views

Allegheny Technologies Incorporated has extended its long-term titanium products supply agreement with Boeing. The extension agreement covers value-added titanium mill products and provides opportunity for greater use of ATI’s next-generation and advanced titanium alloys in both long product and flat-rolled product forms.


Airbus Military Services Logistic Hub starts operations

October 16, 2013 · 10 Views

The Airbus Military Services Logistic Hub has started operations in Seville, Spain, in line with the Full In-Service Support (FISS) model developed by the company. This hub delivers spare parts for all Airbus Military products worldwide as well as ground equipment for the operation of the fleet. The new facility substantially strengthens the spare parts delivery procedure by improving reliability and cutting dispatch times. With the new Services Logistic Hub, 95% of customer’s requests for spare parts will be fulfilled within five days. For Aircraft-On-Ground (AOG) Service the dispatch time is reduced to a maximum of four hours. Delivery reliability has increased since the start of operations. The new set up will also mean a reduction in recurring operational costs of around €500,000 a year compared with traditional processes.


RUAG reinforces aerostructures as core business

October 16, 2013 · 16 Views

As part of RUAG’s strategy of focusing on its core competencies, from October 15th the RUAG Technology division will be known as RUAG Aerostructures. This step underlines the growing significance of aerostructures for RUAG, and clearly defines the company’s position in the expanding international aviation market. With sites in Emmen, Switzerland, and Oberpfaffenhofen, Germany, RUAG Aerostructures’ key focal points are the manufacture of complete fuselage sections and winglets for passenger aircraft. It also develops and produces wing and control surface components as well as sophisticated component assemblies and parts for civil and military aircraft. Customers include aircraft manufacturers such as Airbus, Bombardier, Boeing and Dassault. With its global strategy, RUAG Aerostructures aims to consolidate and expand its position as a strong direct supplier and partner for aircraft manufacturers.


Jérôme Bendell appointed CEO of ThalesRaytheonSystems France

October 16, 2013 · 25 Views

Effective October 1st, Jérôme Bendell has been appointed Chief Executive Officer of ThalesRaytheonSystems SAS, the French entity of the joint venture between Thales and Raytheon. He succeeds Philippe Duhamel, who was appointed Chief Executive Officer of international joint venture ThalesRaytheonSystems in July 2013.


ST Engineering’s Aerospace arm secures new orders worth $600m in 3Q2013

October 16, 2013 · 1 View

Singapore Technologies Engineering (ST Engineering) released that its aerospace arm, Singapore Technologies Aerospace (ST Aerospace) has secured new orders worth about $600m in the third quarter of 2013. The new orders involve projects ranging from airframe, component and engine maintenance, to commercial airline cabin retrofit and freighter conversions. Included in the 3Q2013 contracts is an order of 17 passenger-to-freighter (PTF) conversions received from an international air freight carrier, bringing to 119 the total number of aircraft contracted for the Boeing 757-200 PTF conversion programme. In the cabin interior business, ST Aerospace’s expertise in providing complete turn-key solutions has once again been affirmed with the clinching of a cabin reconfiguration project for two Boeing 767-300 airplanes for an Asian airliner. Another noteworthy achievement is the ownership of a Supplemental Type Certificate (STC) awarded by the European Aviation Safety Agency for a full cabin retrofit programme involving six A330 aircraft for an international carrier.


Avolon announces successful closing of US$636m aircraft securitisation

October 16, 2013 · 13 Views

Avolon, the international aircraft leasing group, announced the closing of the US$636 million Asset Backed Securitisation (“ABS”) for Emerald Aviation Finance Limited. On September 26, 2013 Avolon announced that Emerald, a newly established special purpose company, had priced a total of US$636 million of Fixed Rate Asset Backed Notes (the “Issue”). The net proceeds of the Issue are being used to acquire 20 aircraft from Avolon.


Boeing, China Southern and China Aviation Authorities establish precision navigation procedures

October 17, 2013 · 27 Views

Boeing and China Southern Airlines recently completed successful demonstration flights using Required Navigation Performance – Authorization Required (RNP-AR) procedures at the Kanas Airport, Xinjiang Province, China. The Kanas procedure development, which is the first RNR AR implementation in the Xinjiang Region, is also the first collaborative RNP AR project between China Southern Airlines and Boeing. The demonstration flights were conducted using the 4000th Boeing Next-Generation 737. Opened in 2007, Kanas Airport is a seasonal airport in a valley of the Altay Mountains that mainly serves tourists to the Kanas Nature Reserve, a natural ecosystem formed by lakes, rivers, glaciers, forests and grasslands. However, weather conditions in the area can be difficult for aviation; flights are often held, diverted to other airports or even cancelled.


Apollo Aviation Management appoints veteran aviation finance specialist to Board Of Directors

October 17, 2013 · 25 Views

Apollo Aviation Management, the Irish subsidiary for international full service aviation asset manager Apollo Aviation Group, released that Pat O’Brien has been elected as a new independent director to its Board. Mr. O’Brien is a former KPMG Partner who specialized in aviation finance and advising international aircraft leasing companies.


AMR Corporation reports third quarter net profit of $530m

October 17, 2013 · 8 Views

AMR Corporation reported net profit of $530m, excluding reorganization and special items, a $420m improvement year-over-year; Revenue of $6.8bn improved 6.2% year-over-year, while consolidated unit costs, excluding fuel and special items, improved 5.0% year-over-year. AMR ended the third quarter with approximately $7.7bn in cash and short-term investments, including restricted cash, compared to a balance of approximately $5.1bn at the end of the third quarter of 2012.


TAROM, CFM mark 1 million CFM56 flight hour milestone

October 17, 2013 · 16 Views

CFM International and Romanian flag carrier TAROM celebrated the achievement of one million flight hours and half a million flight cycles by the airline’s fleet of CFM56 engines. TAROM has been a CFM customer for 20 years and currently operates a fleet of 13 CFM56-powered aircraft, including Airbus A318s and Boeing 737 Classic and Next-Generation aircraft. Introducing CFM56 engines into its fleet beginning in 1993 has given TAROM significantly improved engine reliability compared to its previous fleet, while also reducing its maintenance costs.


Anders Ehrling new CEO of Braathens Aviation

October 17, 2013 · 32 Views

Anders Ehrling has been appointed new Chief Executive Officer of Braathens Aviation. Anders Ehrling replaces Knut A. Solberg who will retire by the end of May 2014.


Israel Aerospace Industries signs licensing agreements with Boeing

October 17, 2013 · 15 Views

Israel Aerospace Industries’ (IAI) Bedek Aviation Group has signed licensing agreements with Boeing modifications of the B767-200/300 and the B747-400, including passenger to freighter conversions. The agreements apply to 72 DSF767-200/300 aircraft and 29 BDSF747-400 aircraft previously converted by IAI for various customers, as well as future IAI conversions. Bedek Aviation Group has been a Boeing licensee for passenger to freighter conversions of the B737-300/400 since 2010.


PEMCO redelivers second special mission 737-400 Combi Aircraft to Safair

October 17, 2013 · 20 Views

PEMCO World Air Services (PEMCO) announced the redelivery of its second special mission 737-400C to Safair for operation in Africa. This versatile PEMCO-built Combi will be used primarily in support of global humanitarian and charitable relief organizations. This latest delivery is a 737-400 Combi with PEMCO designed “Swiss army knife” cargo loading system, capable of simultaneously carrying four and a half pallets of freight in multiple configurations (88×125, 88×108, 88x118x or eight 88×61.5) and seventy-two passengers. The functional capabilities of the converted aircraft make them perfect for accomplishing unique and difficult missions for Safair.


Jet Aviation Singapore signs strategic alliance with Air Transport Training College

October 17, 2013 · 27 Views

Jet Aviation Singapore and Air Transport Training College at Seletar Aerospace Park announced that they will jointly support a Licensed Aircraft Engineer Training Program for business aviation. As part of the agreement, Jet Aviation will provide required on-the-job training opportunities to students enrolled in the SAR 66 Cat B1.1 at ATTC. To develop a competitive pool of local licensed aircraft engineers and related professionals for the business aviation network at Seletar Aerospace Park, Jet Aviation Singapore and the Air Transport Training College (ATTC) at Seletar Aerospace Park are cooperating to offer an ATTC – Jet Aviation Licensed Aircraft Engineer Training Program for Business Aviation. The joint program is to be integrated within the ATTC’s SAR 66 Cat B1.1 training program currently on offer, which requires students to complete on-the-job training (OJT).