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Wednesday, August 20, 2014

AviTrader Daily Aviation News Alert

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

February 20, 2015 · 556 Views

The bitter dispute between US- and Gulf-based airlines has reached a new level after Emirates flatly rejected an open apology made concerning what was seen as incredibly tactless and insensitive remarks made by Delta’s Chief Executive, Richard Anderson. The unfortunate incident relates back to comments made by a group of American airlines that a number of the larger Gulf carriers had benefited from state subsidies amounting to a figure in excess of US$40bn. As a consequence the American airlines either wanted to renegotiate or scrap the current Open Skies agreement.
Offended by such claims, the Gulf carriers retaliated by questioning whether or not US airlines had received government subsidies totaling US$5bn in the wake of 9/11. Unfortunately Delta’s Anderson, responding to this claim on CNN, said: “It’s a great irony to have the United Arab Emirates from the Arabian Peninsula talk about that, given the fact that our industry was really shocked by the terrorism of 9/11, which came from terrorists from the Arabian Peninsula.” While the UAE and Qatar, two of the States’ allies who have offered either military or logistical support for international operations were particularly upset by these comments, Delta simply made it clear that Anderson had been responding to claims regarding post 9/11 subsidies. “He didn’t mean to suggest the Gulf carriers or their governments are linked to the 9/11 terrorists. We apologize if anyone was offended.”
Unfortunately the largest of the three main Gulf carriers did not see this as acceptable. “We believe that the statements made this week by Mr. Anderson were deliberately crafted and delivered for specific effect,” it confirmed in a statement. However US airlines continue to complain that they have lost significant numbers of bookings since 2008 as a result of Gulf competition and cited documents they indicate demonstrate aid which has allowed their competitors to offer cheap fares. In retaliation, Gulf officials say that most US carriers do not fly the same routes and are losing business only because they offer an inferior service.
This is not a dissimilar situation to the one between Gulf airlines and European carriers, including Lufthansa, and coincidentally has come at the same time as US airlines are trying to have US Exlm Bank closed down. They believe Gulf carriers are benefitting to a greater degree from the export credit agency. The tit-for-tat dialog continues with Western airlines showing concern for the safety of thousands of service industry jobs, a complaint to which Gulf carriers have responded by making it very clear they support at least as many jobs in the aerospace sector with their huge orders for aircraft.


Snecma and HAL to create joint venture and build a new production facility in India

February 20, 2015 · 655 Views

Snecma (Safran), a leading manufacturer of aircraft engines, and Hindustan Aeronautics  (HAL), a leading aerospace manufacturer, signed a Memorandum of Understanding (MoU) on January 28th, 2015 in Bangalore to explore establishing a joint venture in India for the production of aero-engine parts.  The proposed joint venture will initially focus on the manufacture of high-tech parts for the Dassault Rafale’s Snecma M88 engine, then subsequently contribute to other major aerospace projects of HAL & Snecma, in India and worldwide. Spanning over 30,000 m², the proposed joint venture’s new plant is expected to benefit from substantial investment by the two partners, providing it with state-of-the-art machinery and equipment. This agreement marks a major step forward in the long-standing collaboration between Snecma and HAL. The proposed joint venture will further broaden the scope of the excellent relations established over the past 60 years between Safran affiliates and the Indian aerospace industry. For example, Snecma manufactures the M53 engines powering the Mirage 2000H “Vajra” fighters operated by the Indian Air Force.


Design flaws led to 787 battery fire

December 2, 2014 · 197 Views

On the 7th January 2013 a fire was reported on board a Boeing 787 Dreamliner while parked at Boston’s airport in the USA. The fire was put down to a problem with one of the plane’s lithium-ion batteries. A week later an All Nippon Airways 787 Dreamliner had to make an emergency landing after smoke was discovered inside the plane which was subsequently traced back to another lithium-ion battery. As a consequence of this incident, all 787 Dreamliners were grounded until April of that year until further acceptable testing and improvements were carried out to the battery system on board the plane. The battery itself was manufactured by GS Yuasa and comprised eight individual cells making up a combined weight of 63lbs.
Nearly two years later and the results of the investigation into the first incident have concluded that the lithium-ion battery installed in the plane should not have received certification by the FAA. The National Transport Safety Board (NTSB) were also critical of Boeing who they believed had erroneously ruled out the chances of thermal runaway in its assessment of the battery’s safety. Boeing’s battery tests to obtain original certification included crushing battery cells, driving nails through them and deliberately introducing short circuits to cause failure. Boeing found “nothing adverse happened” while these tests were carried out, and so deemed the battery’s box and internal protection to be of an acceptable standard. Boeing stated that it had followed the certification process set out by the FAA. It would seem that while the cause of the fire has been clearly identified, responsibility for its occurrence has not been accepted in full by anyone.


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

November 5, 2014 · 164 Views

Back in February this year, Rolls-Royce, the FTSE-100 engine maker, lost over £3bn of its value after shocking the market with its first profits warning in a decade. To announce a second one this October has created considerable concern and Rolls-Royce has decided that over the next 18 months they need to reduce costs by up to £80m a year by axing 2,600 jobs, the majority of which will be in the aerospace sector in Britain and the United States. The focus is on Rolls-Royce’s key Trent engines as they move from the development to the production phase, which consequently requires fewer engineers.
Back in February John Rishton, Rolls-Royce group’s Chief Executive, had admitted that the future was “bumpier than I had expected”, while blaming the current problems on deteriorating economic conditions and a tit-for-tat trade war between the EU and Russia over the Ukrainian crisis which had affected its nuclear and energy business as well as its power-systems unit. This week Rishton has had to admit that “We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last; however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.”
Another consequence of the situation is the unexpected departure of Finance Director, Mark Morris, leaving the company after 27 year without any explanation. He will be replaced by David Smith, who is being promoted from Finance Director of the Rolls-Royce Aerospace division. This second profit warning saw share value fall 11% to 832p, wiping a further £2bn off the company’s value. However, news of the redundancies was well received by investors and the share price rallied by 2%, currently standing at 832p. This is clear confirmation of comments made by Espirito Santo’s analyst, Ed Stacey, who indicated that investors would be expecting a clear message from the new Finance Director and tight control on all finances.


Air France-KLM selects GEnx engines for Boeing 787 fleet

March 25, 2014 · 113 Views

Air France-KLM selected the GEnx-1B engine to power its 25 Boeing 787 Dreamliners and 12 leased 787 aircraft. The total engine order is valued at more than $1.7bn. Air France-KLM and GE Aviation have also signed an agreement that will allow Air France-KLM to offer maintenance, repair and overhaul (MRO) services for the GEnx-1B engine. Under this agreement, Air France-KLM will be licensed to perform maintenance and overhaul work on the GEnx-1B engine and GE will provide technical support and assistance on overhaul workscoping and component repair licenses, comprehensive material support and training.


ILFC closes $1.5bn senior secured term loan

March 7, 2014 · 80 Views

International Lease Finance Corporation (ILFC) has closed a new senior secured term loan of $1.5 billion. The loan will bear interest at LIBOR plus 275 basis points with a 0.75% LIBOR floor, is priced at 99.5% of par value, and will mature in 2021. The collateral used to support the transaction has an initial weighted average age of 9.1 years. It will be secured primarily by a first priority-perfected lien on the equity of certain of ILFC’s subsidiaries, which directly or indirectly own a pool of aircraft and related leases. ILFC plans to use the proceeds for general corporate purposes, including purchasing aircraft and supporting the company’s liquidity cushion.


Airbus Commercial reports another year of financial improvement

February 26, 2014 · 80 Views

In 2013, Airbus achieved a new industry record of 1,619 gross commercial orders (FY 2012: 914 gross orders) with net orders of 1,503 aircraft (FY 2012: 833 net orders), excluding ATR. Gross orders comprised 1,253 A320 Family aircraft, 77 A330s, 239 A350 XWBs and 50 A380s. Fourth-quarter orders included Emirates Airline’s agreement for 50 A380s and Etihad Airways’ order for 50 A350 XWBs, 36 A320neos and one A330-200F. Airbus Military (now part of Airbus Defence and Space) received 17 net orders (FY 2012: 32 net orders). Airbus’ net order intake increased sharply to €202.3bn (FY 2012: €88.9bn). At the end of 2013, Airbus’ consolidated order book was valued at €647.4bn (year-end 2012: €525.5bn). The Airbus Commercial backlog was worth €627.1bn (year-end 2012: €505.3bn), comprising 5,559 Airbus aircraft (year-end 2012: 4,682 units) and representing over eight years of production. Airbus Military’s order book was worth €20.8bn (year-end 2012: €21.1bn). Airbus series aircraft deliveries increased to 626 aircraft (FY 2012: 588 aircraft, including three A330s without revenue recognition). Airbus Military delivered 31 aircraft (FY 2012: 29 aircraft). Airbus’ consolidated revenues increased seven percent to €42,012m (FY 2012: €39,273m), reflecting higher commercial and military aircraft deliveries. The Division’s consolidated EBIT rose to €1,710m (FY 2012: €1,252m). Airbus Commercial’s revenues rose to €39,889m (FY 2012: €37,624m). The Airbus Commercial reported EBIT was €1,595m (FY 2012: €1,147m) with the EBIT before one-off at €2,216m (FY 2012: €1,669m). Airbus Commercial’s EBIT before one-off benefitted from the improved operational performance, including favourable volume, some better pricing and an improvement in A380 losses. It also included higher A350 XWB programme support costs. Revenues at Airbus Military rose to €2,893m (FY 2012: €2,131m), driven by the A400M ramp-up and higher volumes from both light and medium transport planes and tankers. The EBIT at Airbus Military was €166m (FY 2012: €93m).


Boeing Commercial Airplanes reports full year revenue of $53bn

January 29, 2014 · 76 Views

Boeing Commercial Airplanes fourth-quarter revenue increased to $14.7bn and full-year revenue increased to a record $53bn on higher delivery volume. Fourth-quarter operating margin improved to 10.3% and full-year operating margin grew to 10.9% on the higher volume, favorable delivery mix and continued strong operating performance. During the quarter, the company launched the 777X with 259 orders and commitments. During the year, the 787 program completed first flight of the 787-9, successfully launched the 787-10 and began operating at a 10 per month production rate in final assembly. The 737 program delivered at a record production rate of 38 per month and has won nearly 1,800 firm orders for the 737 MAX since launch. In 2013, a record 648 commercial aircraft were delivered. In January 2014, the company reached an eight-year contract extension through 2024 with the International Association of Machinists & Aerospace Workers District 751 (IAM). Commercial Airplanes booked 465 net orders during the quarter and 1,355 during the year. Backlog remains strong with 5,080 airplanes valued at a record $374 billion.


A350 XWB in Bolivia for high altitude testing

January 9, 2014 · 67 Views

The A350 XWB development aircraft, MSN3, is in Bolivia where it will perform a series of tests at the high altitude airfields of Cochabamba and La Paz. Cochabamba is around 8,300 feet above sea level, and La Paz is one of the world’s highest airports at 13,300 feet. Operations at such high altitude airfields are particularly demanding on aircraft engines, Auxiliary Power Unit (APU) and systems. The aim of these trials is to demonstrate and validate the full functionality of engines, systems, materials as well as to assess the overall aircraft behaviour under these extreme conditions. A number of take-offs with all engines operating and with simulated engine failures are being performed at each of the airfields to collect data on engine operating characteristics and validate the aircraft take-off performance. The autopilot behaviour will also be evaluated during automatic landings and go-arounds. Since the A350 XWB’s first flight with MSN1 on June 14th 2013, over 800 flight test hours have been performed in close to 200 test flights by both MSN1 and MSN3. In total the A350 XWB flight test campaign will accumulate around 2,500 flight hours with the fleet of five aircraft. The rigorous flight testing will lead to the certification of the A350-900 by the European EASA and US FAA airworthiness authorities, prior to entry into service in Q4 2014.


Firefly welcomes first ATR 72-600

July 5, 2013 · 66 Views

Firefly, Malaysia Airlines’ subsidiary carrier has taken ownership of its first brand-new ATR 72-600. The aircraft is the first of 20 latest generation firm ATRs, plus 16 options, ordered by Malaysia Airlines in December 2012. Firefly currently operates 12 ATR 72-500s, and with the arrival of the new ATR 72-600s will almost triple its exclusively ATR 72 aircraft fleet, taking the total to over 30 aircraft.


GE’s Passport engine begins first full engine test

June 26, 2013 · 42 Views

Certification testing is underway on the first Passport development engine at GE Aviation’s Peebles Testing Operation in Ohio. The engine began ground testing on June 24th and ran for more than three hours, reaching more than 18,000 lbs. of standard day sea-level takeoff thrust. Eight Passport engines and one core will be involved in the engine certification program. Flight testing on GE’s flying testbed is scheduled for 2014. Engine certification is expected in 2015. The Passport engine certification program follows three years of validation testing. GE Aviation has conducted validation tests on the fan blisk design, including two fan blade-out rig tests, ingestion tests and a fan aero rig test to demonstrate fan efficiency. Testing is complete on the third eCore demonstrator, and GE has accumulated more than 300 hours of testing on eCore demonstrators to date.


Rolls-Royce wins order from CIT to power 23 aircraft

May 22, 2013 · 55 Views

Rolls-Royce has won an order from US leasing company CIT Aerospace for Trent XWB engines, to power ten Airbus A350 XWB aircraft and Trent 700 engines to power 13 Airbus A330 aircraft. The Trent XWB engines will power ten CIT A350 aircraft that were announced in January 2013 which were in addition to five A350 XWB aircraft already on order. The Trent XWB, specifically designed for the Airbus A350, is the fastest selling Trent engine ever, with more than 1,200 already sold. The engine variant that will power the A350-800 and -900 was awarded European Aviation Safety Agency (EASA) type certification in February. The engine will power the first flight of the Airbus A350 XWB this year and the aircraft’s first in-service flight in 2014.


StockMarket.aero releases new features and inventory swells to over 60 million line items

August 18, 2014 · 117 Views

Component Control released new timesaving features for StockMarket.aero, its searchable online eMarketplace for aviation parts and services. Users can now send an RFQ to multiple vendors at one time with just a few clicks of a mouse, and directly from the “Parts Wanted Broadcast” message screen. A new option allows users to easily limit searches to just inventory or capabilities to more quickly find what they need. Broadcast messages have been expanded to include a new type — Aircraft and Engines for Lease/Sale, allowing vendors to reach a large market faster.


Privilege Style awards seven year power-by-the-hour contract to AJW Aviation

August 18, 2014 · 149 Views

AJW Aviation has signed a seven year PBH contract with Spanish airline, Privilege Style. The contract will cover the supply of spare parts for the airline’s Boeing 767-300 aircraft, providing essential Power-by-the-hour support for the private charter operator.


Morten Beyer & Agnew advises White Oak on $65m investment in Surf Air

August 18, 2014 · 188 Views

Morten Beyer & Agnew (“mba”) was retained by White Oak Global Advisors to provide fleet and financial due diligence support in preparation of their investment for Surf Air’s purchase of 15 new Pilatus PC-12 NG aircraft. White Oak Global Advisors provided Surf Air with a senior secured facility in the amount of $65.0m. Surf Air currently serves five destinations in California. Members of the club-based airline are charged a monthly fee and afforded unlimited non-stop flights to destinations served by the airline. Surf Air’s immediate expansion plans include additional destinations within California, as well as other regional markets throughout the U.S. Surf Air established an exclusive partnership with the manufacturer and has firm orders for 15 Pilatus PC-12 NG aircraft with deliveries commencing this year and running through 2016. In addition to the 15 firm orders, Surf Air maintains an option for 50 additional aircraft with deliveries scheduled through 2019. Currently, Surf Air is the only North American club-based operator utilizing the PC-12 NG aircraft.


Basta Holdings signs LOI with Heliflight PERU SAC to provide ACMI leasing of helicopters through joint venture

August 18, 2014 · 141 Views

Basta Holdings, an aviation services and logistics management company, signed a Letter of Intent (LOI) with Heliflight PERU SAC to form a joint venture that will provide ACMI leasing of helicopters throughout Peru. The parties have ninety days to formalize their understanding into a definitive written agreement and one hundred twenty days to close the transaction. Heliflight PERU SAC is an aviation company based in Lima that provides Air Transport Service in Special Air Transport and aerial work geared toward the oil, mining and hydropower sector throughout Peru. Once the joint venture is finalized, the established entity will be able to bid on Peruvian Government contracts via Heliflight PERU’s Air Operator’s Certificate. The Company’s new joint venture will provide ACMI (aircraft, crew, maintenance and insurance) leasing of MI-17, MI-8-MTV1 and MI-117E helicopters in Peru to provide logistical support, internal and external air cargo for projects that require the transport of highly valuable cargo and passengers. These projects will include, but are not limited to oil, gas, and mining exploration, construction and emergency air rescue and evacuation operations. Basta Holdings projects that if this new joint venture comes to fruition, it will generate substantial revenues for the company.


Constant Aviation Las Vegas receives DGAC endorsement

August 18, 2014 · 122 Views

Constant Aviation, a Directional Aviation Capital company offering full-service maintenance capabilities with a nationwide network, was endorsed by the Mexican Civil Aviation Authority as an approved aircraft maintenance organization at their Las Vegas location. Besides the FAA, Constant Aviation’s locations in Cleveland, OH, Birmingham, AL, and Las Vegas, NV, hold multiple additional civil aviation authorities around the world. The Cleveland facility has certifications for EASA, Aruba, and Canada.


StandardAero establishes new component repair & development capabilities in Canada

August 18, 2014 · 195 Views

StandardAero’s Component Services (SACS), located in Cincinnati, Ohio, has expanded its component repair and development facilities with the addition of new capabilities at its Winnipeg, Manitoba, Canada campus. The Winnipeg facility will be known as SACS-Canada and the Cincinnati facility will be referred to as SACS-USA. The expanded SACS-Canada facility will provide a substantial increase in StandardAero’s component repair offerings to meet the growing market and customer demands for customized component repair solutions, completely aligned with and authorized by the major OEMs for both aviation and industrial gas turbine powered engines and accessories. In addition to already serving operators of CF34, CFM56, CF6, GE90, V2500, and LM1600/2500/6000 engines, SACS will now serve customers for T56, M250 and 501k engine applications. StandardAero is also improving its in-house offerings for component repair and support for PW2000 and PW4000 customers, with the addition of a world-class plating capability at its SACS-Canada facility.


CIRCOR Aerospace & Defense promotes Robert Lenardi to Vice President of Operations

August 18, 2014 · 141 Views

CIRCOR Aerospace promoted Robert Lenardi to Vice President of Operations for the Aerospace & Defense Division. Mr. Lenardi will report directly to CIRCOR Aerospace & Defense Group President Vincent Sandoval. He will have full responsibility for the implementation of CIRCOR’s growth, productivity and factory execution strategy for the division. Mr. Lenardi has been the Director of Operations for the Long Island facility for the past three years, and was recently promoted to the General Manager position. Due to his successes with CIRCOR, he was selected for the Operations executive role.


Lufthansa Technik deploys E2open for extended logistics visibility

August 19, 2014 · 104 Views

E2open, a leading provider of cloud-based solutions for collaborative planning and execution across global trading networks, reported that Lufthansa Technik is leveraging the E2open Business Network. The cloud-based platform gives Lufthansa Technik the distinct competitive advantage of better ensuring continuity of supply and reducing delayed deliveries by getting immediate notification of problems and exceptions. Lufthansa Technik is one of the world’s leading providers of maintenance, repair and overhaul (MRO) services for aircraft, engines and components. At Lufthansa Technik, E2open is managing the electronic communication between the Oracle Transportation Management (OTM) system and relevant logistics service providers. E2open offers the E2open Logistics Network (ELN), an integrated connectivity solution for Transportation Management Systems (TMS), which simplifies the effort of establishing electronic integration between shippers, transportation carriers and logistics service providers.


Royal Air Maroc selects Global Eagle Entertainment to provide customized content services

August 19, 2014 · 119 Views

Global Eagle Entertainment, provider of content, connectivity and digital media solutions to airlines, has signed an agreement with Royal Air Maroc to provide a broad array of local and international inflight entertainment (IFE) content across its entire fleet. Starting in September 2014, Global Eagle Entertainment (GEE) will provide Royal Air Maroc with a variety of movies, TV shows and audio, as well as a new African content program customized for the airline. In addition to providing content services, GEE will design an exclusive microsite to showcase Royal Air Maroc’s IFE program to passengers prior to boarding their flight.


Air Lease Corporation places one Airbus A320 with VivaColombia

August 19, 2014 · 134 Views

Air Lease Corporation announced the placement of one Airbus A320 aircraft at VivaColombia on long term lease, scheduled for delivery in spring 2015. Originally acquired by ALC in May 2011, the aircraft is presently on lease to an airline in Asia and is equipped with CFM56-5B engines.


Virgin America appoints Brad Thomann as VP – Flight Operations

August 19, 2014 · 177 Views

Virgin America appointed Brad Thomann as Vice President – Flight Operations effective immediately. Thomann, who has over 30 years of experience in civil and military aviation, will oversee the California-based airline’s technical and administrative Flight Operations functions including Flight Training, Flight Operations Engineering, Flight Standards, Flight Crew Communications, Flight Crew Resources and the Chief Pilot’s Office.


Greater Rockford Airport Authority signs agreement with AAR to build new hangar facility

August 19, 2014 · 164 Views

The Greater Rockford Airport Authority (GRAA) has reached an agreement with Maintenance, Repair and Overhaul (MRO) provider, AAR, to build a new hangar facility on Chicago Rockford International Airport (RFD) grounds. The facility is expected to employ up to 500 people and expands RFD’s current service offerings and infrastructure. The 200,000 ft² MRO facility is expected to operate 24 hours a day and will service next-generation, wide-body aircraft. This will allow for scheduled and unscheduled service, modification and overhaul and all other support services for military and commercial aircraft. Final agreements between the partners are currently being developed and construction is expected to begin within the year. The hangar will be located in the mid-field area of the airport and is slated to open in Spring 2016. Rockford joins AAR’s six other MRO locations (Duluth, MN; Oklahoma City, OK; Miami, FL; Lake Charles, LA; Indianapolis, IN and Hot Springs, AR).


StandardAero awarded over $145m of Propulsion System Maintenance contracts by Royal Australian Air Force

August 19, 2014 · 178 Views

StandardAero, in partnership with Airbus Group Australia Pacific (formerly known as Australian Aerospace), has signed a $42m T56 propulsion support systems contract for the Royal Australian Air Force (RAAF) AP-3C Orion aircraft fleet. The contract includes full overhaul and repair services for all the associated systems as well as logistical, inventory and fleet management support. The AP-3C propulsion system comprises the Rolls-Royce T56A-14 engine, Lockheed Martin P-3 Quick Engine Change (QEC) assembly, Hamilton Sundstrand 54H60 propeller and the Honeywell GTCP 95-3 Auxiliary Power Unit (APU). Intermediate Level support services will be delivered from facilities at both RAAF Base Edinburgh and RAAF Base Richmond with depot support for the engine and propeller being delivered from StandardAero’s facility in Winnipeg, Canada.