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Wednesday, May 28, 2014

AviTrader Daily Aviation News Alert

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Emirates reject Delta’s apology regarding Anderson’s 9/11 comments

February 20, 2015 · 541 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 · 639 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 · 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.


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

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.


Air France-KLM selects GEnx engines for Boeing 787 fleet

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.


ILFC closes $1.5bn senior secured term loan

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.


Airbus Commercial reports another year of financial improvement

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).


Boeing Commercial Airplanes reports full year revenue of $53bn

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.


A350 XWB in Bolivia for high altitude testing

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.


Firefly welcomes first ATR 72-600

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.


GE’s Passport engine begins first full engine test

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.


Rolls-Royce wins order from CIT to power 23 aircraft

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.


Monarch Aircraft Engineering Training Academy provides EASA Part 147 approved aircraft type training

May 26, 2014 · 129 Views

Monarch Aircraft Engineering Training Academy, the UK-based training centre has extensive capability to deliver full EASA Part-147 B1 and B2 approved type training for a variety of aircraft including the Boeing 787 Dreamliner and is one of only eight independent Maintenance Repair and Overhaul (MRO) organisations worldwide accredited to provide training for this aircraft type. MAETA’s state-of-the-art training facility has a well equipped learning centre with spacious classrooms, together with student study areas, access to online libraries and IT facilities and importantly, the ability to spend real time on aircraft at Monarch Aircraft Engineering’s hangar facilities thus enabling students to build up practical and theoretical knowledge. The training can be provided at any of its UK locations or overseas.


Precision Aviation Services (PAS) sells Robinson Turbine Helicopter

May 26, 2014 · 100 Views

PAS sold a top-of-the-line 2014 Robinson R66 Turbine helicopter during HAI HELI-EXPO 2014, which attracts more than 19,000 people involved in the rotary craft industry. The R66 Turbine, outfitted with Robinson’s new glass avionics cockpit, offers many of the company’s signature design features including a two-bladed rotor system, T-bar cyclic and open cabin configuration. The helicopter’s Rolls Royce RR300 turbo-shaft engine is specifically designed to deliver increased reserve power and improved altitude performance.


Asiana Airlines takes delivery of first Airbus A380

May 26, 2014 · 150 Views

South Korea’s Asiana Airlines has taken delivery of its first Airbus A380, becoming the eleventh operator of the type in the world. Asiana Airlines has ordered six A380s, powered by Rolls-Royce Trent 900 engines. The airline has specified a premium three class layout for its fleet, seating a total of 495 passengers, with 12 private suites in First Suite, 66 fully flat seats in Business Smartium and 417 seats in Travel Class. All seats are equipped with the latest on-demand in-flight entertainment systems.


Jet Aviation MRO facilities in EMEA and Asia appointed Rolls-Royce Authorized Service Centers

May 26, 2014 · 164 Views

Jet Aviation Basel, Jet Aviation Geneva, Jet Aviation Moscow, Jet Aviation Dubai and Jet Aviation Singapore have been selected by Rolls-Royce to join its Authorized Service Center (ASC) network in EMEA and Asia. The appointments extend full service capabilities for BR710, BR725 and Tay engines. Rolls-Royce announced its intention to expand its network of Authorized Service Centers at EBACE 2012. The manufacturer of aero engines for the corporate jet market has now appointed Jet Aviation’s MRO facilities across EMEA and Asia as Rolls-Royce Authorized Service Centers (ASCs). With these appointments, the Jet Aviation maintenance facilities in Basel, Geneva, Moscow, Dubai and Singapore are authorized to provide line maintenance and warranty support for the BR710, BR725 (Gulfstream G650) and Tay engines. The facilities will also receive support from Rolls-Royce, including on-site training, specific engine training, technical support and publications.


ST Engineering’s Aerospace arm acquires US flight school

May 26, 2014 · 147 Views

Singapore Technologies Engineering (ST Engineering) reported that Vision Technologies Aerospace has acquired 100% equity interest in Aviation Academy of America, for a purchase consideration of US$811,238 (approximately $1.02m). Following the acquisition, Aviation Academy of America, will become a wholly owned subsidiary of VT Aerospace. The acquisition is part of the Group’s aerospace sector’s strategic initiative to grow its pilot training capacity and capabilities to support the rising global demand. Marketed as part of ST Aerospace’s global network with an expanded footprint into the US, the new business will work closely with the aerospace sector’s existing pilot training businesses in Singapore and Ballarat, Australia, to offer an integrated suite of pilot training services to customers around the world. Based in New Braunfels,Texas, Aviation Academy of America is a US Federal Aviation Administration Part 141 approved flight school currently operating at New Braunfelsregional airport, 35 miles northeast of the aerospace sector’s San Antonio-based aircraft maintenance, repair and overhaul facility.


SVP Human Resources Manne Tiensuu to leave Finnair

May 26, 2014 · 211 Views

Finnair’s SVP Human Resources Manne Tiensuu will leave the company. Tiensuu, a member of Finnair’s Executive Board, has held the position since 2010 and will leave the company once Finnair has found a successor for him.


Boeing delivers 4th P-8I maritime patrol aircraft to India

May 26, 2014 · 146 Views

Boeing has delivered the fourth P-8I maritime patrol aircraft to India on schedule, fulfilling the first half of a contract for eight aircraft. Based on the company’s Next-Generation 737 commercial airplane, the P-8I is the Indian Navy variant of the P-8A Poseidon that Boeing has developed for the U.S. Navy.


TAG Aviation to lease one Boeing 757-200ER from ILFC

May 27, 2014 · 1578 Views

Cabot Aviation announced the lease by TAG Aviation (UK) of one Boeing 757-200ER, serial number 26330, from ILFC. The aircraft, which has Rolls-Royce engines together with the highest available take-off weight and winglets, will be reconfigured and operated with a VIP interior, primarily for TCS Expeditions’ worldwide services but has other contracted work and will also be available for charter. First revenue service is scheduled for January 2015. Cabot Aviation acted as TAG Aviation’s acquisition agent.


Boeing acquires AerData Group

May 27, 2014 · 268 Views

Boeing announced that it is acquiring AerData Group , which provides integrated software solutions for lease management, engine fleet planning and records management. Based in the Netherlands, AerData also provides technical services for aircraft and engine operators, lessors, and maintenance, repair and overhaul companies. AerData has approximately 120 employees located in the Netherlands, United Kingdom and Ireland. Managing directors Mark Nieuwendijk and Paul van Tol will continue to lead the business. AerData’s products will become part of the integrated suite of aviation services marketed as the Boeing Edge. These include parts, training, engineering, maintenance and software solutions that increase the efficiency and profitability of airlines and leasing companies. Terms of the transaction are not being disclosed.


Thales provides avionics equipment to Brazilian Army’s modernised helicopters

May 27, 2014 · 137 Views

Thales will provide its Integrated Electronic Stand-by Instrument (IESI) to modernise the Esquilo/Fennec helicopter fleet of the Brazilian Army. A total of 36 helicopters will be retrofitted with the Thales system with completion expected in 2018. The first batch will be completed by 2014, whereby Thales’s IESI will be integrated into six initial helicopters by Helibras, the Brazilian subsidiary of Airbus Helicopter.


Triumph Group signs agreement to acquire GE Aviation hydraulic actuation business

May 27, 2014 · 360 Views

Triumph Group has entered into a definitive agreement to acquire the hydraulic actuation business of GE Aviation. GE’s hydraulic actuation business consists of three facilities located in Yakima, Washington, Cheltenham, England and the Isle of Man and will be included in the Aerospace Systems Group. The business is expected to add approximately $180m in annual revenue and to be immediately accretive to earnings. The purchase price will be approximately $70m. Employing approximately 475 employees, the business is a technology leader in actuation systems and does extensive business with Boeing, Airbus and other major airframers. Key product offerings include complete landing gear actuation systems, door actuation, nose-wheel steering, hydraulic fuses, manifolds, flight control actuation and locking mechanisms for the commercial, military and business jet markets. The acquisition is subject to regulatory approvals and other customary closing conditions and is expected to close in the current fiscal quarter.


Surinam Airways extends A340 maintenance contract with AFI KLM E&M

May 27, 2014 · 170 Views

Surinam Airways decided to extend the maintenance contract for its Airbus A340-300 with AFI KLM E&M. The original agreement signed in November 2009 covered full aircraft maintenance and overhaul. The recently-extended contract between the two groups includes engineering services, A-checks, engine and component repair with pool access and deployment of a Main Base Kit. A separate contract is in place for line maintenance of the aircraft at Amsterdam Airport Schiphol.