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Wednesday, December 04, 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.


Aircastle announces proposed offering of $300m aggregate principal amount of Senior Notes

December 2, 2013 · 22 Views

Aircastle plans to offer an aggregate of $300m principal amount of its senior notes due 2018. Aircastle plans to use the net proceeds of the offering for general corporate purposes, including the purchase of aviation assets. Citigroup Global Markets, Goldman, Sachs & Co., J.P. Morgan Securities and RBC Capital Markets are acting as joint book-running managers for the offering.


Gogo receives STC for Ku-Satellite connectivity service on Boeing 747-400 aircraft

December 2, 2013 · 13 Views

Gogo, a leader of in-flight connectivity and a pioneer in wireless in-flight digital entertainment solutions, passed a key milestone in launching its international connectivity service by receiving an STC to install its Ku-satellite technology on Boeing 747-400 aircraft. Gogo will begin testing the new service immediately and plans to offer the service for customer usage by the first quarter of 2014. The technology will give travelers and crew access to the Internet. The service will also offer passengers Gogo Vision, Gogo’s wireless in-flight entertainment service.


AAR to acquire cargo loading system assets from PFW Aerospace GmbH

December 2, 2013 · 16 Views

AAR CORP. released that its 100% owned subsidiary, Telair International GmbH, has signed a definitive agreement to purchase the cargo loading system assets of Speyer, Germany based PFW Aerospace GmbH. The acquisition will enhance Telair’s market position as one of the leading suppliers globally of cargo loading and baggage handling systems. Upon completion of a transition period after closing, Telair will transfer the assets to, and perform operations at, its Miesbach, Germany facility. The acquisition will be funded from available cash on hand and is expected to be completed by the end of the calendar year.


STS Component Solutions acquires two ATR’s 72 – 212

December 2, 2013 · 9 Views

STS Component Solutions, a division of STS Aviation Group, reported the acquisition of two ATR 72-212’s (MSN 410 & MSN 431) with engines. The aircraft were previously operated by American Eagle Airlines. These fixed wing multi engine ATR’s are powered by PW 127 Turbo-Prop engines and are currently in the process of being disassembled.


Boeing delivers C-17 Cargo Compartment Trainer to Royal Australian Air Force

December 2, 2013 · 30 Views

Boeing has delivered a full-scale C-17 Globemaster III Cargo Compartment Trainer (CCT) to the Royal Australian Air Force (RAAF), ensuring that RAAF loadmaster training can be cost-effectively completed in Australia instead of in the United States. The CCT is a fully functional replica of a C-17 fuselage in a dedicated facility at RAAF Base Amberley. It can realistically simulate both day and night operating and loading conditions for loadmaster, aeromedical evacuation and aeromedical specialist training. The facility at Amberley also includes classrooms, loading vehicles, simulated cargo and other training assets. It is the third operational Boeing C-17 CCT; the two others are located at Altus Air Force Base in the United States.


China Express Airlines signs purchase agreement for up to 16 CRJ900 NextGen aircraft

December 2, 2013 · 22 Views

China Express Airlines has placed a firm order for three CRJ900 NextGen airliners, as well as entered into conditional purchase agreements for five CRJ900 NextGen aircraft with options on an additional eight CRJ900 NextGen aircraft. China Express, based in Guiyang, Guizhou provides regional passenger services with its fleet of five CRJ200 aircraft and six CRJ900 NextGen aircraft. The airline is the first to operate the CRJ900 aircraft in the country. Based on the list price for the CRJ900 NextGen aircraft, the firm order is valued at approximately US$134m. Should the conditional agreements for five CRJ900 NextGen and options on the additional eight CRJ900 NextGen aircraft be converted to firm orders, the value of the contract would increase to US$733m.


Mitsubishi Aircraft establishes new Production Management Office

December 2, 2013 · 11 Views

Mitsubishi Aircraft Corporation established the Production Management Office on December 1st, 2013 to accelerate preparation for MRJ production. The Office will manage the production schedule. The company appointed Shoji Amano, Senior Vice President, as Executive Officer of the Production Management Office. Amano was previously Head of Engineering & Head of the Overseas QCD Office. Concurrently, at the end of November 2013, the company closed its Overseas Quality Cost Delivery (QCD) Office , which had been instrumental in establishing management systems for overseas partners.


BOC Aviation makes first delivery to KLM subsidiary, KLM Cityhopper

December 3, 2013 · 16 Views

BOC Aviation has delivered the first of six Embraer E190 aircraft to KLM subsidiary, KLM Cityhopper, under an operating lease agreement. The remaining five E190 aircraft from BOC Aviation will be delivered between December 2013 and April 2014.


GA Innovation becomes first Parts Redistribution Company to acheive ASA 100

December 3, 2013 · 14 Views

GA Innovation China, a joint venture between GA Telesis and Air China, released that it successfully passed its audit by the Aviation Suppliers Association (ASA), and its quality system is accredited and able to operate to ASA-100, the most widely followed level of organizational and quality assurance certification standard available for aerospace companies worldwide.


AJW Aviation signs five year PBH contract with WOW air

December 3, 2013 · 23 Views

AJW Aviation, a leading independent complete aircraft spares support specialist, has signed a five year power-by-the-hour contract with European airline WOW air. The initial contract is to provide on-going support for one of the airline’s A320 aircraft. WOW air which is based in Iceland, is the country’s only low-cost carrier since acquiring its predecessor Iceland Express in 2012. The airline made considerable changes to its schedule, in order to accommodate the majority of Iceland Express’ routes.


Cargolux chooses AerData’s STREAM digital aircraft records software

December 3, 2013

AerData, the provider of software and services for the aviation industry announced Cargolux Airlines International S.A., as the latest Airline to acquire STREAM aircraft records software. STREAM (Secure Technical Records for Electronic Asset Management) is the industry’s foremost web-based solution used by some of the world’s largest airlines, lessors and MROs to manage aircraft and engine records.


Ducommun receives multiyear contract from Parker Aerospace for electronics on Airbus A350

December 3, 2013 · 17 Views

Ducommun has received a multiyear contract from Parker Aerospace to produce complex printed circuit board assemblies for use in the fuel management system of the Airbus A350 family of commercial aircraft. The award has a potential value in excess of $20m over the contract period, and is expected to begin production in mid-2014. Ducommun also has begun manufacturing printed circuit board assemblies for a retrofit fuel tank inerting system (FTIS) being deployed on various aircraft throughout the Airbus fleet. The FTIS work, which was awarded under a separate contract from Parker Aerospace, is valued at more than $1m through September 2014. Production of the printed circuit board assemblies for both contracts will take place at Ducommun’s Appleton, Wis., facility.


CPI Aerostructures receives purchase orders from Boeing for A-10 assemblies

December 3, 2013 · 38 Views

CPI Aerostructures has received purchase orders totaling more than $15m from the Boeing Defense, Space & Security unit for assemblies for the A-10 aircraft. These represent follow-on orders for CPI Aero’s previously announced long-term requirements contract to support Boeing’s A-10 Wing Replacement Program (WRP). The A-10 WRP multi-million dollar contract between Boeing and CPI Aero includes the production of a variety of structural assemblies for up to 242 enhanced wings. Including these orders, CPI Aero has received firm requirements for 167 ship sets for the A-10 WRP program.


Delta reports operating performance for November

December 3, 2013 · 16 Views

Delta reported November system traffic was down 2.4% when compared to the previous year, while capacity was up 1.4%. System load factor for the month was down 3.1 points to 79.4% compared to November 2012.


Astronics’ Electronic Power Distribution System to be installed on new Bell 525 Relentless helicopter

December 3, 2013 · 25 Views

Astronics Advanced Electronic Systems, a wholly-owned subsidiary of Astronics Corporation, will be supplying Bell Helicopter with the Secondary Electronic Power Distribution System (EPDS) for the new Bell 525 Relentless. Astronics designs and builds modern electrical distribution systems, which safely and efficiently manage aircraft power. The secondary EPDS selected by Bell Helicopter employs Astronics’ electronic circuit breaker units. These units, with solid state circuit breakers, are smaller and lighter than their conventional counterparts and can also be conveniently located throughout the aircraft. This placement creates a more evenly distributed system, thereby reducing wire weight. This is the third announced aircraft of five current programs for which Astronics has been selected to provide its EPDS products.


Ascent is granted Airbus A320 Storage and Return to Service capabilities

December 3, 2013 · 27 Views

Ascent Aviation Services announced the addition of Airbus A320 to its Repair Station authorization by its certificating agencies for Aircraft Storage, Return to Service, Interior and Exterior Refurbishment along with Power Plant replacements. The ASCENT facilities located at Tucson International Airport consist of 23 acres of concrete ramp, over 34,000 ft² feet of hangar space along with 88,000 ft² of backshop and secured consignment space in an ideal desert climate. The FAA, EASA, NCAA and AFRA Certified repair station specializes in B737 Classic, B737NG, MD80/90, B717, CRJ 100/200 and Airbus A320 (Limited) aircraft. Ascent performs heavy and line maintenance, modifications, transition, aircraft refurbishment, storage and reclamation services along with consigned part sales. Ascent’s workforce has completed more than 550 heavy maintenance and modification visits on the B737 and MD80 fleet types since 2002.


Boeing selects GKN to build 737 MAX Advanced Technology Winglet

December 3, 2013 · 25 Views

Boeing has selected GKN to manufacture the Advanced Technology Winglet for the 737 MAX. Production of the winglets will take place at the GKN site at Cowes on the Isle of Wight in the United Kingdom, with final assembly at GKN’s facility in Orangeburg, South Carolina. Already a market success, the 737 MAX has more than 1,600 orders from airlines around the world. Boeing’s Advanced Technology Winglet is one of a number of design updates that will result in less drag and further optimize the 737 MAX performance, especially on longer-range missions.


Bombardier names Raymond Jones SVP, Sales, Marketing and Asset Management

December 3, 2013 · 67 Views

Bombardier Aerospace announced the appointment of Raymond Jones as Senior Vice President, Sales, Marketing and Asset Management, Bombardier Commercial Aircraft. This appointment is effective immediately. Mr. Jones was most recently Vice President, Worldwide Strategic Accounts for Bombardier Business Aircraft.