Wednesday, June 04, 2014
AviTrader Daily Aviation News Alert
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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.
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.
December 2, 2014 · 195 Views
On the 7th January 2013 a fire was reported on board a Boeing 787 Dreamliner while parked at Boston’s airport in the USA. The fire was put down to a problem with one of the plane’s lithium-ion batteries. A week later an All Nippon Airways 787 Dreamliner had to make an emergency landing after smoke was discovered inside the plane which was subsequently traced back to another lithium-ion battery. As a consequence of this incident, all 787 Dreamliners were grounded until April of that year until further acceptable testing and improvements were carried out to the battery system on board the plane. The battery itself was manufactured by GS Yuasa and comprised eight individual cells making up a combined weight of 63lbs.
Nearly two years later and the results of the investigation into the first incident have concluded that the lithium-ion battery installed in the plane should not have received certification by the FAA. The National Transport Safety Board (NTSB) were also critical of Boeing who they believed had erroneously ruled out the chances of thermal runaway in its assessment of the battery’s safety. Boeing’s battery tests to obtain original certification included crushing battery cells, driving nails through them and deliberately introducing short circuits to cause failure. Boeing found “nothing adverse happened” while these tests were carried out, and so deemed the battery’s box and internal protection to be of an acceptable standard. Boeing stated that it had followed the certification process set out by the FAA. It would seem that while the cause of the fire has been clearly identified, responsibility for its occurrence has not been accepted in full by anyone.
November 5, 2014 · 162 Views
Back in February this year, Rolls-Royce, the FTSE-100 engine maker, lost over £3bn of its value after shocking the market with its first profits warning in a decade. To announce a second one this October has created considerable concern and Rolls-Royce has decided that over the next 18 months they need to reduce costs by up to £80m a year by axing 2,600 jobs, the majority of which will be in the aerospace sector in Britain and the United States. The focus is on Rolls-Royce’s key Trent engines as they move from the development to the production phase, which consequently requires fewer engineers.
Back in February John Rishton, Rolls-Royce group’s Chief Executive, had admitted that the future was “bumpier than I had expected”, while blaming the current problems on deteriorating economic conditions and a tit-for-tat trade war between the EU and Russia over the Ukrainian crisis which had affected its nuclear and energy business as well as its power-systems unit. This week Rishton has had to admit that “We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last; however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.”
Another consequence of the situation is the unexpected departure of Finance Director, Mark Morris, leaving the company after 27 year without any explanation. He will be replaced by David Smith, who is being promoted from Finance Director of the Rolls-Royce Aerospace division. This second profit warning saw share value fall 11% to 832p, wiping a further £2bn off the company’s value. However, news of the redundancies was well received by investors and the share price rallied by 2%, currently standing at 832p. This is clear confirmation of comments made by Espirito Santo’s analyst, Ed Stacey, who indicated that investors would be expecting a clear message from the new Finance Director and tight control on all finances.
March 25, 2014 · 111 Views
Air France-KLM selected the GEnx-1B engine to power its 25 Boeing 787 Dreamliners and 12 leased 787 aircraft. The total engine order is valued at more than $1.7bn. Air France-KLM and GE Aviation have also signed an agreement that will allow Air France-KLM to offer maintenance, repair and overhaul (MRO) services for the GEnx-1B engine. Under this agreement, Air France-KLM will be licensed to perform maintenance and overhaul work on the GEnx-1B engine and GE will provide technical support and assistance on overhaul workscoping and component repair licenses, comprehensive material support and training.
March 7, 2014 · 78 Views
International Lease Finance Corporation (ILFC) has closed a new senior secured term loan of $1.5 billion. The loan will bear interest at LIBOR plus 275 basis points with a 0.75% LIBOR floor, is priced at 99.5% of par value, and will mature in 2021. The collateral used to support the transaction has an initial weighted average age of 9.1 years. It will be secured primarily by a first priority-perfected lien on the equity of certain of ILFC’s subsidiaries, which directly or indirectly own a pool of aircraft and related leases. ILFC plans to use the proceeds for general corporate purposes, including purchasing aircraft and supporting the company’s liquidity cushion.
February 26, 2014 · 78 Views
In 2013, Airbus achieved a new industry record of 1,619 gross commercial orders (FY 2012: 914 gross orders) with net orders of 1,503 aircraft (FY 2012: 833 net orders), excluding ATR. Gross orders comprised 1,253 A320 Family aircraft, 77 A330s, 239 A350 XWBs and 50 A380s. Fourth-quarter orders included Emirates Airline’s agreement for 50 A380s and Etihad Airways’ order for 50 A350 XWBs, 36 A320neos and one A330-200F. Airbus Military (now part of Airbus Defence and Space) received 17 net orders (FY 2012: 32 net orders). Airbus’ net order intake increased sharply to €202.3bn (FY 2012: €88.9bn). At the end of 2013, Airbus’ consolidated order book was valued at €647.4bn (year-end 2012: €525.5bn). The Airbus Commercial backlog was worth €627.1bn (year-end 2012: €505.3bn), comprising 5,559 Airbus aircraft (year-end 2012: 4,682 units) and representing over eight years of production. Airbus Military’s order book was worth €20.8bn (year-end 2012: €21.1bn). Airbus series aircraft deliveries increased to 626 aircraft (FY 2012: 588 aircraft, including three A330s without revenue recognition). Airbus Military delivered 31 aircraft (FY 2012: 29 aircraft). Airbus’ consolidated revenues increased seven percent to €42,012m (FY 2012: €39,273m), reflecting higher commercial and military aircraft deliveries. The Division’s consolidated EBIT rose to €1,710m (FY 2012: €1,252m). Airbus Commercial’s revenues rose to €39,889m (FY 2012: €37,624m). The Airbus Commercial reported EBIT was €1,595m (FY 2012: €1,147m) with the EBIT before one-off at €2,216m (FY 2012: €1,669m). Airbus Commercial’s EBIT before one-off benefitted from the improved operational performance, including favourable volume, some better pricing and an improvement in A380 losses. It also included higher A350 XWB programme support costs. Revenues at Airbus Military rose to €2,893m (FY 2012: €2,131m), driven by the A400M ramp-up and higher volumes from both light and medium transport planes and tankers. The EBIT at Airbus Military was €166m (FY 2012: €93m).
January 29, 2014 · 74 Views
Boeing Commercial Airplanes fourth-quarter revenue increased to $14.7bn and full-year revenue increased to a record $53bn on higher delivery volume. Fourth-quarter operating margin improved to 10.3% and full-year operating margin grew to 10.9% on the higher volume, favorable delivery mix and continued strong operating performance. During the quarter, the company launched the 777X with 259 orders and commitments. During the year, the 787 program completed first flight of the 787-9, successfully launched the 787-10 and began operating at a 10 per month production rate in final assembly. The 737 program delivered at a record production rate of 38 per month and has won nearly 1,800 firm orders for the 737 MAX since launch. In 2013, a record 648 commercial aircraft were delivered. In January 2014, the company reached an eight-year contract extension through 2024 with the International Association of Machinists & Aerospace Workers District 751 (IAM). Commercial Airplanes booked 465 net orders during the quarter and 1,355 during the year. Backlog remains strong with 5,080 airplanes valued at a record $374 billion.
January 9, 2014 · 65 Views
The A350 XWB development aircraft, MSN3, is in Bolivia where it will perform a series of tests at the high altitude airfields of Cochabamba and La Paz. Cochabamba is around 8,300 feet above sea level, and La Paz is one of the world’s highest airports at 13,300 feet. Operations at such high altitude airfields are particularly demanding on aircraft engines, Auxiliary Power Unit (APU) and systems. The aim of these trials is to demonstrate and validate the full functionality of engines, systems, materials as well as to assess the overall aircraft behaviour under these extreme conditions. A number of take-offs with all engines operating and with simulated engine failures are being performed at each of the airfields to collect data on engine operating characteristics and validate the aircraft take-off performance. The autopilot behaviour will also be evaluated during automatic landings and go-arounds. Since the A350 XWB’s first flight with MSN1 on June 14th 2013, over 800 flight test hours have been performed in close to 200 test flights by both MSN1 and MSN3. In total the A350 XWB flight test campaign will accumulate around 2,500 flight hours with the fleet of five aircraft. The rigorous flight testing will lead to the certification of the A350-900 by the European EASA and US FAA airworthiness authorities, prior to entry into service in Q4 2014.
July 5, 2013 · 64 Views
Firefly, Malaysia Airlines’ subsidiary carrier has taken ownership of its first brand-new ATR 72-600. The aircraft is the first of 20 latest generation firm ATRs, plus 16 options, ordered by Malaysia Airlines in December 2012. Firefly currently operates 12 ATR 72-500s, and with the arrival of the new ATR 72-600s will almost triple its exclusively ATR 72 aircraft fleet, taking the total to over 30 aircraft.
June 26, 2013 · 40 Views
Certification testing is underway on the first Passport development engine at GE Aviation’s Peebles Testing Operation in Ohio. The engine began ground testing on June 24th and ran for more than three hours, reaching more than 18,000 lbs. of standard day sea-level takeoff thrust. Eight Passport engines and one core will be involved in the engine certification program. Flight testing on GE’s flying testbed is scheduled for 2014. Engine certification is expected in 2015. The Passport engine certification program follows three years of validation testing. GE Aviation has conducted validation tests on the fan blisk design, including two fan blade-out rig tests, ingestion tests and a fan aero rig test to demonstrate fan efficiency. Testing is complete on the third eCore demonstrator, and GE has accumulated more than 300 hours of testing on eCore demonstrators to date.
May 22, 2013 · 53 Views
Rolls-Royce has won an order from US leasing company CIT Aerospace for Trent XWB engines, to power ten Airbus A350 XWB aircraft and Trent 700 engines to power 13 Airbus A330 aircraft. The Trent XWB engines will power ten CIT A350 aircraft that were announced in January 2013 which were in addition to five A350 XWB aircraft already on order. The Trent XWB, specifically designed for the Airbus A350, is the fastest selling Trent engine ever, with more than 1,200 already sold. The engine variant that will power the A350-800 and -900 was awarded European Aviation Safety Agency (EASA) type certification in February. The engine will power the first flight of the Airbus A350 XWB this year and the aircraft’s first in-service flight in 2014.
June 2, 2014 · 112 Views
GE Capital Aviation Services (GECAS) completed a purchase-and-leaseback transaction with Aerovías De Mexico S.A.de C.V., (Aeromexico), for a new GEnx engine. The engine will be used as a spare to support the airline’s Boeing 787 fleet.
June 2, 2014 · 160 Views
The ATR Assembly of Members has appointed Patrick de Castelbajac, as Chief Executive Officer (CEO) of ATR. He succeeds Filippo Bagnato, whose four-year mandate according to ATR’s statutes expired at the end of May 2014.
June 2, 2014 · 78 Views
The ongoing uncertain economic outlook in Europe and Asia is contributing to weak consumer demand in Finnair’s main markets. Air traffic is expected to grow moderately in 2014. Finnair, however, will not be able to benefit from that growth without progress in its cost savings program and its target cost structure in place. Finnair estimates its 2014 turnover to be significantly lower than in 2013. Fuel costs are expected to remain high. The outcome of Finnair’s ongoing employee consultations and cost-saving negotiations will have a significant impact on financial performance in 2014, and therefore the company will reconsider giving guidance for its full-year 2014 financial performance after the savings negotiations have been concluded.
June 2, 2014 · 66 Views
Constant Aviation, a Directional Aviation Capital company offering full-service maintenance capabilities with a nationwide network, received Administración Nacional de Avianción Civil (ANAC) Brazil Supplemental Type Certificate (STC) approval to install Swiftbroadband Aviator 200 and Aircell GoGo Wi-Fi systems in the Phenom 300.
June 2, 2014 · 83 Views
WestJet reported that guests now have full access to their personal electronic devices (PEDs) during all phases of flight, including taxi-in and out, take-off and landing in non-transmitting or flight mode, starting immediately. The move follows a recent Transport Canada exemption that enables airlines, once they have met all necessary safety conditions, to provide guests with access to PEDs such as cameras, electronic games and tablet computers. WestJet has completed comprehensive testing to ensure its fleet of Boeing Next-Generation 737 aircraft is proven safe and does not cause interference with navigation or communication systems on the aircraft. Testing is now underway on WestJet Encore’s growing fleet of Bombardier Q400s.
June 2, 2014 · 110 Views
WestJet reported that guests now have full access to their personal electronic devices (PEDs) during all phases of flight, including taxi-in and out, take-off and landing in non-transmitting or flight mode, starting immediately.The move follows a recent Transport Canada exemption that enables airlines, once they have met all necessary safety conditions, to provide guests with access to PEDs such as cameras, electronic games and tablet computers. WestJet has completed comprehensive testing to ensure its fleet of Boeing Next-Generation 737 aircraft is proven safe and does not cause interference with navigation or communication systems on the aircraft. Testing is now underway on WestJet Encore’s growing fleet of Bombardier Q400s.
June 2, 2014 · 264 Views
B/E Aerospace has signed a definitive agreement to acquire EMTEQ, a provider of aircraft interior and exterior lighting systems, as well as aircraft cabin management and power systems. The Company also has signed a definitive agreement to acquire F+E Fischer + Entwicklungen GmbH & Co. KG (Fischer) the leading manufacturer of seating products for civilian helicopters. The total acquisition purchase price for both companies is approximately $470m. EMTEQ and Fischer combined had latest 12 months ended March 31, 2014 revenues of approximately $150m. The transactions are not expected to be accretive to 2014 earnings per share, but to become accretive in 2015 and to become strongly accretive in 2016. Transaction expenses of approximately $10m will be a one-time charge in the second quarter of 2014. The EMTEQ transaction is expected to close in June, while the Fischer transaction is expected to close around the beginning of the third quarter of 2014, subject to regulatory approvals.
June 2, 2014 · 144 Views
Following Air New Zealand’s 2009 order for A320 Family aircraft, the airline has selected the added efficiency and performance of the NEO with an order for three A321neo, 10 A320neo and one additional A320ceo aircraft. The agreement marks the first time Air New Zealand has ordered the larger A321 aircraft and the NEO. Engine selection and cabin configuration will be made at a later date. The A321 is the largest member of the A320 Family offering the best seat mile costs of any single aisle. The A320 Family fuselage is seven inches wider than competing aircraft and with a cargo hold designed for industry standard containers and pallets.
June 2, 2014 · 214 Views
The Airbus A350 XWB has started a campaign of Early Long Flights with cabin crew and passengers. The A350 (MSN 002) test aircraft equipped with cabin, took off on the first of two Early Long Flights from Toulouse-Blagnac on June 2nd. The two flights will be operated in a real airline environment with Air France and Lufthansa cabin crew. Covering all types of flight conditions, the flights will be completed during the week with almost 250 passengers on board comprising Airbus employees, and some 30 cabin experts from Airbus and equipment manufacturers. The Early Long Flights are not part of the technical certification programme but remain an important step towards the A350’s maturity at entry into service.
June 2, 2014 · 168 Views
Delta will grow its A320 Family with an order for 15 A321ceo (current engine option) aircraft to offset jet retirements. The airline has selected CFM56-5B engines from CFM International to power the newly ordered A321ceo aircraft, which are scheduled for delivery starting in 2018. CFM International is a 50/50 joint company between Snecma (Safran) and GE. Delta currently operates a large fleet of Airbus aircraft, including 126 A320 Family aircraft and 32 A330s. This latest order brings Delta’s backlog to 45 single-aisle Airbus A321 and 10 widebody Airbus A330 aircraft.
June 3, 2014 · 176 Views
AJW Group, the integrated aircraft solutions specialist, has appointed Jason Cordoba as Commercial Development Officer. In this newly defined position Cordoba will be working with key members of the AJW Group team such as Deepak Sharma, Chief Technical Officer and Andy Smith, Group Operations Director who have both been at the forefront of the business innovations and technical developments that have contributed to the Group’s exponential growth. Cordoba will be responsible for maximising insights from rich industry data and exploring new strategic global developments utilising advanced technologies. Jason Cordoba brings more than ten years of experience in aviation e-commerce and is renowned for his contribution to the aftermarket industry launching StockMarket.aero, the industry’s first Google-like ‘aircraft part search’ mobile apps and web service applications. He will be based at AJW’s London and Miami offices and will continue serving with the ACPC Committee group – now in his 9th year. Most recently Cordoba, served as Director of StockMarket.Aero for the MRO software provider, Component Control.
June 3, 2014 · 114 Views
Santos Dumont, the aviation technical consultancy and asset manager, announced that it is to redeliver one Boeing 737-400 aircraft on behalf of Globus Airlines. The aircraft MSN 25168 is being redelivered to ILFC. The aircraft is scheduled to be redelivered in October 2014.
June 3, 2014 · 163 Views
JorAMCo will provide heavy maintenance services to Indian carrier Jet Airways, on four Airbus A330 of its fleet between May and July of this year. The work scope includes C checks in addition to cabin refurbishment. This collaborative effort is a continuation of the 2013’s program where JorAMCo has completed three maintenance checks. Jet Airways currently operates a fleet of 112 aircraft, which include 10 Boeing 777-300 ER aircraft, 8 Airbus A330-200 aircraft, 4 Airbus A330-300 aircraft, 72 next generations Boeing 737-700/800/900/900 ER aircraft and 15 ATR 72-500 and 3 ATR72-600. With an average fleet age of 5.30 years.
June 3, 2014 · 107 Views
Robinson Helicopter Company received Transport Canada’s certification for the R66 Turbine Police Helicopter. Robinson’s R66 Police model is specially configured for law enforcement and meets the latest FAA crashworthiness regulations. The R66 Police helicopter combines R66 power, altitude performance, and payload with the latest in surveillance technology. Turn-key ready, the R66 police comes standard with a FLIR Ultra 8000 thermal imaging camera, a 10-inch fold down color monitor, a Spectrolab SX-7 searchlight with 30-million candlepower, and a dual audio controller. Performance specifications of the R66 Police Helicopter include a cruise speed of up to 120 kts (138 mph), payload of 800 lbs with full fuel, and a hover ceiling OGE at max gross weight of 10,000 ft.
June 3, 2014 · 177 Views
Wesco Aircraft Holdings announced the commencement of a public offering of 6,000,000 shares of its common stock by an affiliate of The Carlyle Group. In addition, the underwriter will have a 30-day option to purchase up to 900,000 additional shares from Carlyle. Upon completion of the offering, Carlyle will beneficially own approximately 24.1% of the outstanding common stock of Wesco Aircraft, or approximately 23.1% if the underwriter fully exercises its option to purchase additional shares. Wesco Aircraft is not selling any shares of common stock in the offering and will not receive any of the proceeds from the offering of shares by Carlyle.
June 3, 2014 · 181 Views
Frontier Airlines reported the appointment of Bill Meehan as the low fare carrier’s new Chief Operating Officer. Meehan brings nearly 30 years of industry experience to the role, which includes responsibility for flight, inflight and airport operations, as well as the airline’s safety and security program. Meehan joins Frontier with substantial experience in the airline industry. Most recently, he served as CEO of PEMCO World Air Services, a major provider of aircraft maintenance and engineered services to commercial air carriers.
June 3, 2014 · 138 Views
For the month of May Delta reported traffic increase of 5.8% compared to the same period in 2013, while the load factor was up 3.6% year over year. The load factor for May increased 1.7 points to 86.5%.
June 3, 2014 · 162 Views
The domestic and regional subsidiary of Fiji Airways, Fiji Link took delivery of its first brand new ATR 72-600 on operating lease from Singapore-based aircraft leasing company Avation PLC. The acquisition of the new ATR is part of the airline’s dynamic expansion plan to support network growth on its domestic and regional routes in the Pacific Islands, which it operates on behalf of Fiji Airways. The larger capacity, 68-seat ATR 72-600 of the new generation will allow the Fiji Airways Group to enhance connectivity over Fiji’s larger domestic ports Nadi, Suva and Labasa, while boosting frequency of flights to other Pacific island destinations.
June 3, 2014 · 194 Views
Rolls-Royce reported the first run of the Trent 1000-TEN, which will power all variants of the Boeing 787 Dreamliner. The engine, which is scheduled to be certified to 78,000lbs thrust by the end of 2015, will offer commonality for customers operating a combination of 787 Dreamliner models and provide margin to Boeing requirements for 76,000lbs of thrust at entry into service. The Trent 1000-TEN draws on technologies from the Rolls-Royce Trent XWB engine and Advance engine programme, delivering thrust and efficiency improvements. Demonstrator programmes have already validated improvements to the high pressure turbine, compressors, internal air systems and a composite fan case dressing system.