Friday, May 30, 2014
AviTrader Daily Aviation News Alert
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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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
May 28, 2014 · 108 Views
The high-speed low-pressure turbine for Pratt & Whitney’s PurePower Geared Turbofan (GTF) engine to power the A320neo has passed the mandatory stress tests with flying colors. These extremely complex telemetry runs, an official certification requirement for this module made by MTU, are considered one of the biggest challenges in engine testing. They serve to measure the vibrational stresses acting on the blades, along with the thermal load and temperature distribution. In a laborious manual process that took a couple of months, MTU’s high-speed low-pressure turbine was fitted with some 400 special measurement sensors. During 20 hours of testing, the propulsion system was put through its paces, also at overspeed conditions. The PW1100G-JM will enter into service on the Airbus A320neo next year. To date the PurePower engine family has completed more than 9,000 hours of testing, including more than 1,200 hours of flight test hours. Pratt & Whitney has more than 5,500 PurePower engine orders and commitments, including options.
May 28, 2014 · 102 Views
AviaAM Leasing, a WSE listed global aviation holding company engaged in commercial aircraft acquisition, leasing and sales, is further developing its cooperation with major air carriers from the CIS region, by signing an aircraft leasing agreement with Belavia. Under the latest contract, AviaAM Leasing has already delivered a Boeing 737-300 aircraft to the Belarusian flag carrier’s base at Minsk National Airport. The Boeing 737-300 aircraft, powered by two CFM56-3B2 engines, is already the second AviaAM Leasing’s aircraft in the Belavia’s fleet. Prior to the delivery, AviaAM Leasing has conducted a wide range of maintenance works, including C-Check, livery change and cabin refurbishment, in order for the aircraft to fully meet the carrier’s requirements and brand. Belavia will be operating the Boeing 737-300 aircraft under a 5-year long operating lease.
May 28, 2014 · 128 Views
Hong Kong Aircraft Engineering Company Group has enhanced its aircraft-on-ground (AOG) support service by launching a centralised material support centre that leverages Group-wide assets and technical capabilities to further strenghten customer support in emergency situations. The single-point AOG communication platform provides customers with access to a dedicated team of experienced material specialists, on 24/7 standby to respond to critical AOG requirements. The service enhancement will shorten lead time and increase success rates for AOG recovery. The Group’s AOG service is supported by its inventory technical management company, HAECO ITM, which has the capability to provide rotable components for round-the-clock emergency AOG recovery throughout the Asia Pacific region. HAECO ITM’s extensive asset base, located at Hong Kong International Airport (“HKIA”), caters to a wide range of aircraft types, and is supported by speedy customs clearance, effective logistics and a comprehensive freight network coverage, so that emergency spares are within a four flight-hour reach of most Asian cities. In addition, the Group’s AOG desk also sources parts on behalf of customers from the HAECO Group’s extensive network of suppliers and distributors.
May 28, 2014 · 138 Views
AJW Aviation has signed a two year contract with Nigerian airline Air Peace to provide power-by-the-hour support for its four B737-500 aircraft. Although this is AJW’s first contract with the airline, their Boeing fleet joins over 500 aircraft which AJW currently has under PBH or pooling globally. AJW will support Air Peace from its significant inventory network of around 450,000 service ready Boeing and Airbus components valued at over US$450m and located in strategic hubs worldwide. Air Peace, founded in 2013, is a privately owned airline, created to serve the rapidly expanding domestic Nigerian market.
May 28, 2014 · 73 Views
GE Capital Aviation Services (GECAS) will lease two new Boeing 737-800 aircraft to Kenya Airways to expand the carrier’s fleet. The aircraft come from GECAS’ existing order book with Boeing and are scheduled for delivery in early 2015.
May 28, 2014 · 233 Views
LORD Corporation – a leader in the management of vibration, noise and motion control – announced a plan for significant investments in Europe in support of commercial aerospace clients and the industry. Responding to customer demand for new innovation and risk sharing partners, the updated strategy focuses on technological innovation, acquisitions and further development of the aftermarket base. Already a strong solutions partner in the European OEM (Original Equipment Manufacturer) rotary wing sector where its noise, vibration and motion control technologies are integral to a number of major helicopter programmes, the LORD aerospace strategy for Europe seeks to support the demand for risk sharing innovators in the commercial fixed wing supply chain. LORD Corporation already collaborates with major European Aerospace leaders, including Airbus Group, SAFRAN Group, Finmeccanica Group, Dassault, Pilatus, and SAAB. The product range for fixed wing platforms includes engine attachment systems, passive and active motion and vibration control, noise mitigation solutions, and specialty chemicals such as lightning strike protection for composite aircraft. A key element of this strategy is a European acquisition programme to add resources, technologies and capabilities to the LORD Corporation offering. Following this year’s acquisition of New York-based Stellar Technology, Inc. and Vermont-based MicroStrain two years earlier, European acquisitions are being actively pursued in the low to mid-cap size bracket to provide further platforms delivering new customer solutions.
May 28, 2014 · 5016 Views
Air Canada appointed Duncan Bureau as Vice-President, Global Sales. Mr. Bureau will report directly to Ben Smith, Executive Vice-President and Chief Commercial Officer, and in this newly defined position will be responsible for revenue generated through all sales channels from all points of sale. He will be based in Toronto.
May 28, 2014 · 164 Views
The U.S. Federal Aviation Administration approved additional extended operations (ETOPS) for the Boeing 787 Dreamliner. The move will allow 787s to be operated up to 330 minutes from a landing field and signals continued confidence in the airplane’s technical capabilities. Dreamliners have been allowed to operate up to 180 minutes away from a landing field since they were introduced into service in 2011. Granting of the expanded operational permission will allow airlines to introduce additional routes after they meet the proof of capabilities requirements and receive approval from their own regulatory agencies for such operations. ETOPS operations will make the 787 even more efficient in operations as they enable more direct flight paths, which can save thousands of pounds of fuel and reduce carbon emissions.
May 28, 2014 · 115 Views
West Star Aviation has been named the approved window repair and replacement vendor for the C21 fleet, which consists of Learjet models 35s & 36s being utilized by the United States Air Force. West Star currently has two window repair locations at their East Alton, IL (ALN) and Grand Junction, CO (GJT) locations, allowing them to dispatch one of their highly trained aircraft window experts to any base worldwide. West Star currently employs five window technicians with a combined experience of 65 years specializing in aircraft windows, allowing them to provide quick response time worldwide to the United States Air Force.
May 28, 2014 · 114 Views
AAR’s Nordisk Aviation Products has received orders for more than 1,100 lightweight air cargo containers and pallets from China Southern Airlines. Nordisk’s Unit Load Devices (ULDs), among the lightest-weight in the industry, will provide the airline fuel savings of more than 1,100 tons of fuel a year, reducing carbon emissions by more than 3,500 tons. The containers and pallets will be manufactured at Nordisk’s facility in Kunshan, China, for shorter delivery lead times to the customer.
May 29, 2014 · 138 Views
Odyssey Airlines, the new UK-based business-only carrier, announced the launch of a capital raise on US platform Crowdfunder. It will run concurrently alongside a similar raise on the UK-based platform Crowdcube, which launched earlier this month, with the combined initiative targeting £5m (US$8.4m) to support the company’s next phase of development. The company has also confirmed the appointment of Virgin Atlantic founder David Tait and Dragonair founder Stephen Miller to its Executive team. The raise comes ahead of a significant institutional fund raise scheduled for the first half of 2015 – some 12 months ahead of Odyssey commencing operations from London City Airport, initially to points on the US East coast. Odyssey plans to launch the first and only non-stop transatlantic services from London City in mid-2016. It aims to deliver stress-free, business class travel, from the heart of London to destinations in North America, the Middle East, and elsewhere in Europe, for the time conscious traveller. Odyssey Airlines is among the first buyers of the revolutionary Bombardier C-Series aircraft, whose unique construction and advanced combustion technology engines will enable the only non-stop range from London City airport to New York. Odyssey’s C-Series aircraft will have 40 fully lie-flat seats and provide business class customers with a unique service to destinations within an eight-hour flying time of London.
May 29, 2014 · 92 Views
Air Serbia, the national airline of Serbia, has announced significantly improved performance in the first three months of the year with a 66% increase in total passenger numbers to 364,924, compared with the same period in 2013. The airline’s passenger carrying capacity, which is measured by available seat kilometres (ASKs), has jumped 93% resulting in a 47% increase in revenue during the first quarter of 2014. Over the same quarter, Air Serbia inducted three Airbus aircraft – two A319s and one A320 – into its fleet. The increase in passenger numbers is being seen across the network, boosted by connectivity with the Etihad Airways global network.
May 29, 2014 · 137 Views
GE Capital Aviation Services (GECAS) delivered a new Embraer E190LR aircraft to Montenegro Airlines to expand the carrier’s fleet. The aircraft is from GECAS’ existing order book with Embraer. Montenegro Airlines currently operates a fleet of nine aircraft to destinations in Europe.
May 29, 2014 · 103 Views
Aristides Ponjuan has been appointed General Manager of Aero Technologies, covering also the MRO Product Line of Air-Pro, two subsidiaries of Aero Maintenance Group (AMG), spearheading the component maintenance business of AFI KLM E&M in the Americas.
May 29, 2014 · 135 Views
Rusada Software released that following the selection of its MRO software, TNT Airways long haul fleet have completed the implementation project that started in April 2013. The inaugural important project milestone was completed in August 2013 when the first B777F OO-TSA was live in the Envision System. Now, just over a year after the project kicked off, Ruada announced that TNT Airways long haul fleet have fully completed the project with all TNT Airways B777F & B747-400 ERF aircraft running live on the Envision System.
May 29, 2014 · 169 Views
Air Lease Corporation took direct delivery of the first of 15 777-300ERs (Extended Range) from its existing order pipeline with Boeing. This 777-300ER, the eighth 777 in ALC’s fleet, is one of two delivering to British Airways on long-term lease from the lessor. The second 777-300ER for British Airways is scheduled to deliver from Boeing in July 2014.
May 29, 2014 · 161 Views
CHC Helicopter’s Brazil unit opened a new, much larger hangar for its existing offshore flying operations in Cabo Frio. BHS (Brazilian Helicopter Services Táxi Aéreo) is a subsidiary of CHC, a global leader in helicopter services and the operating company of CHC Group (HELI). The 6,500-m² (about 70,000-ft²) hangar includes significantly expanded facilities for BHS customers and passengers, meets expected long-term needs for aircraft capacity, and allows for advanced maintenance operations.
May 29, 2014 · 149 Views
AAR announced an agreement with the UK Ministry of Defence (UK MoD) to supply landing gear support to its fleet of BAE 125 aircraft. The contract expands on AAR’s relationship with the UK MoD, for which it provides repairs, spare parts requirements and unit exchanges for BAE 125 and 146 aircraft, as well as APU repairs for the BAE146 aircraft.
May 29, 2014 · 190 Views
Israel Aerospace Industries, Israel’s leading aerospace and defense company, issued its consolidated interim financial statements for the three months ended March 31, 2014. The Company showed record sales and an increase in gross profit against the slowdown in the activities of the Bedek Aviation division and conversion of passenger aircraft to cargo configurations. The Company’s sales in Q1 2014 amounted to US$979m compared to US849m in Q1 2013, a 15% increase. The increase in sales in Q1 2014 mainly arises from the growth in the Company’s military divisions – Systems Missiles and Space division, the Military Aircraft division and Elta. Operating income in Q1 2014 amounted to US$15m (1.5% of sales) compared with US$20m (2.4% of sales) in Q1 2013, a decrease of US$5m reflecting a decrease of 25%, arising from the weakening of the U.S. dollar exchange rate in relation to the NIS, the increase in in-house R&D expenses and the increase in selling and marketing expenses. EBITDA in Q1 2014 amounted to US$44m compared with EBITDA of US$51m in Q1 2013, a decrease of US$7m reflecting a decrease of 14%. Financial income, net in Q1 2014 amounted to US$1m as opposed to financial expenses, net of US$5m in Q1 2013, an increase of approximately US$6m resulting mainly from the decrease in financial expenses in respect of the Company’s debentures mainly due to fluctuations in the U.S. dollar-NIS exchange rate.