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Saturday, August 16, 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.


Karl Ulrich Garnadt appointed as Vice-Chairman of Ameco Beijing

August 14, 2014 · 137 Views

Effective on August 1st 2014, Karl Ulrich Garnadt, the member of the Executive Board of Deutsche Lufthansa Aktiengesellschaft and CEO of Lufthansa German Airlines succeeded Stefan Lauer, to be the Vice-Chairman of the Board of Directors of Ameco Beijing. Karl Ulrich Garnadt began his career at Lufthansa in 1979. In 2011 he became CEO and Chairman of Lufthansa Cargo AG. Since May 1st, 2014, he has been a Member of the Executive Board of Deutsche Lufthansa AG and CEO of Lufthansa German Airlines.


DVB Group publishes half-yearly financial report for 2014

August 14, 2014 · 157 Views

During the first half of 2014, the performance of DVB Bank SE in providing financing solutions and advisory services to its clients in the international transport sector was lower than in the same period of the previous year. Consolidated net income before taxes was down 37.7%, to €41.4m (H1 2013: €66.4m). At EUR105.0 million, net interest income decreased by 9.6% year-on-year (H1 2013: €116.2m). Income from the lending business was down 1.6%, to €381.1m (H1 2013: €387.3m). DVB originated 78 new Transport Finance transactions in the period, with an aggregate volume of €2.2bn (H1 2013: 71 new transactions with a total volume of €1.8bn). Interest income from finance leases totalled €8.2m (H1 2013: €12.7m), whilst current income from operating leases decreased 40.1%, to €41.1m (H1 2013: €68.6m). Given the reasons set out above, total interest income thus declined by 7.9%, from €471.9m to €434.7m. Interest expenses also fell, by 7.3%, to €329.7m (H1 2013: €355.7m), given the massive additional liquidity supply on the capital markets and the resulting lower funding costs. However, this effect did not offset the decline in interest income. Consolidated net income before taxes reduced by 37.7%, to €41.4m (H1 2013: €66.4m). Consolidated net income after taxes was down 45.3%, to €31.7m (H1 2013: €57.9m).


Air Lease Corporation places two new Boeing 777-300ERs with KLM

August 14, 2014 · 148 Views

Air Lease Corporation announced long term lease agreements with KLM (The Netherlands) for two additional new Boeing 777-300ER aircraft, scheduled for delivery in the second half of 2016 and early 2017. These aircraft placements are in addition to the two new 777-300ER aircraft scheduled for lease from ALC to KLM in early 2015 and early 2016, all from ALC’s order book.


Airbus choses AIDC as new supplier for best-selling A320 Family

August 14, 2014 · 198 Views

Aerospace Industrial Development Corporation (AIDC) in Taiwan has become a new tier-one supplier for Airbus. Under the agreement, which followed a thorough evaluation process, AIDC will produce composite panels for A320 Family aircraft aft belly fairings. The contract was signed by François Mery, Airbus Senior Vice President Aerostructure, Procurement and Tony Liou, AIDC Senior Vice President.


Airbus A350 XWB completes Route Proving World Tour

August 14, 2014 · 180 Views

The Airbus A350-900 has successfully completed a series of Route Proving trials, receiving an enthusiastic welcome at each of the 14 cities it has visited over the past three weeks. At the technical Route Proving the aircraft must demonstrate its readiness for airline operations on a global scale. This last series of trials is required for Type Certification, which is expected in Q3 this year. The A350 XWB completed its Route Proving after landing in Toulouse, France on August 13th coming from Helsinki, Finland. The exercise took the flight test aircraft, MSN 005, across the globe on an impressive 20-day trip flying over the North Pole, each ocean and stopping at 14 major international airports world-wide. During its World Tour, the aircraft flew approximately 81,700 nm /151,300 km in some 180 flight hours, with all flights performing on schedule. The aircraft was operated by Airbus flight crews as well as Qatar flight crews on the route from Doha to Perth, Moscow and Helsinki. The Airworthiness Authority pilots from the European Aviation Safety Agency also participated and flew the aircraft on two legs. A major highlight was the trip from Johannesburg Tambo International Airport, located at 5,558 feet (1,694m) above sea level, to Sydney, demonstrating the A350’s excellent performance at high altitude airports. The flights from Johannesburg to Sydney and Auckland to Santiago de Chile demonstrated also its capability to fly ultra-long-haul routes or Extended range Twin Operations (ETOPS). The technical Route Proving commenced on July 24th in Toulouse/France and comprised the following destinations: Frankfurt, Singapore and Hong-Kong. On the third trip, the aircraft visited Johannesburg, Sydney, followed by Auckland, Santiago de Chile and Sao Paulo. The fourth and final journey included Perth followed by Doha, Moscow and Helsinki.


AAR to distribute Eaton’s fluid-distribution products

August 14, 2014 · 197 Views

Power management company Eaton has appointed AAR as the exclusive distributor for aircraft fluid-distribution products, oil debris-monitoring technology, engine seals and other products for commercial airlines. The new, 10-year agreement, which goes into effect October 8th, will strengthen airline service and support by providing operators with a comprehensive inventory of highly reliable products manufactured by Eaton for a wide array of commercial aircraft. “This new agreement with Eaton expands our relationship from military and defense into the commercial parts market and reinforces AAR’s ability to provide efficient and cost-effective solutions for Eaton’s aftermarket,” said John Holmes, Aviation Services Group Vice President – Aviation Supply Chain for AAR.


Meggitt wins Boeing 737 MAX engine and APU fire protection

August 15, 2014 · 223 Views

Meggitt Safety Systems has been awarded a contract by The Boeing Company to design, develop, manufacture and support the fire protection system for the 737 MAX engine and APU. The contract comprises the control computer, engine and APU fire detectors and the engine and APU fire suppression bottles. This contract demonstrates the opportunity to provide full Chapter ATA 26 system offerings enabled by the combined capabilities of the merged Meggitt Safety Systems and Pacific Scientific.


Diego Estrada joins AWAS Commercial Team to support regional growth

August 15, 2014 · 225 Views

Diego Estrada has joined its Commercial team in the position of Sales Director and will be located at its Americas region offices in Miami. He will report to AWAS’ Managing Director for the Americas, Walter Valarezo. Prior to joining AWAS Mr. Estrada was at lessor AerCap where he most recently held the role of Manager Aircraft Marketing, covering Eastern Europe and African airline accounts.


Avcorp announces 2014 second quarter financial results

August 15, 2014 · 185 Views

Avcorp Industries reported its financial results for the quarter ended June 30th, 2014. Revenue for the quarter ended June 30th, 2014 was $21,134,000 as compared to $20,492,000 for the quarter ended June 2013. Current quarter revenues have increased relative to the same quarter in the previous year primarily as a result of an increase in quantities delivered for one defence program, strong aircraft component repairs revenue, as well as an increase in composite aircraft floor board sales and in‑house developed composite parts sales.
Comtek Advanced Structures (“Comtek”), a wholly owned subsidiary of Avcorp, generated a 131% increase in aircraft component repairs revenue primarily as a result of targeted customer campaigns. Comtek’s sales of composite parts to airline operators increased as investments made in developing aftermarket replacement parts have commenced to generate revenues. During the quarter the Company recorded a loss from operations of $472,000 on $21,134,000 revenue, as compared to $393,000 operating income on $20,492,000 revenue for the same quarter in the preceding year; and a net loss for the current quarter of $589,000 as compared to net income of $1,596,000 for the quarter ended June 30th, 2013. 2013 second quarter earnings benefited from a $1,129,000 one-time other operating income as well as a $1,494,000 foreign exchange gain. Cash flows from operating activities during the quarter ended June 30, 2014 provided $180,000 of cash as compared to utilizing $2,776,000 of cash during the quarter ended June 30, 2013.


U.S. Navy Awards GE38 engine production contract

August 15, 2014 · 292 Views

The U.S. Navy awarded GE Aviation a multi-year (2014-2017), $68.5m System Demonstration Test Article (SDTA) contract to manufacture and support 16 GE38-1B engines for the Operational Evaluation phase of the Sikorsky CH-53K King Stallion aircraft development program. The contract builds on the success of the System Design and Development (SDD) contracts with Sikorsky dating back to 2006, which covered engine factory qualification testing and the delivery of 20 flight test engines to support the Technical Evaluation (Tech-Eval) phase of the CH-53K program. Three 7,500 shaft horsepower class GE38-1B engines (designated T408-GE-400 by the U.S. Navy) provide the power for the CH-53K King Stallion aircraft. The GE38 engine will give the CH-53K helicopter the power to carry a 27,000-pound external load over a mission radius of 110 nautical miles in hot weather conditions, nearly triple the external load carrying capacity of the service’s current CH-53E SUPER STALLION™ aircraft.


Honeywell to withdraw Chicago Stock Exchange listing

August 15, 2014 · 230 Views

Honeywell International announced plans to voluntarily withdraw the listing of its common stock from the Chicago Stock Exchange. Honeywell’s common stock will continue to be listed on the New York Stock Exchange. Honeywell has decided to withdraw its listing from the Chicago Stock Exchange to streamline operations and eliminate duplicative administrative requirements and costs inherent with dual listings. The withdrawal is expected to be effective within the next month. Honeywell does not believe that withdrawing its listing from the Chicago Stock Exchange will have any impact on the liquidity of its common stock. The Chicago Stock Exchange will continue to trade Honeywell common stock on an unlisted trading privilege basis.