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Tuesday, September 02, 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.


ADSoftware increases footprint in African aviation market

September 1, 2014 · 99 Views

With the signature of South African Airbus operator Global Airways, ADSoftware announced that AirPack solution is now one of the leading MRO software solutions on the African market. ADSoftware’s presence in the African aviation industry started in 2003 when the French aviation software developer and publisher was selected to provide its flagship AirPack maintenance software by Air Austral in Reunion Island. Seeing the growing potential of the African aviation, in 2009 the company decided to open a new office in South Africa through its local partner, Hi-Fly Marketing. To date ADSoftware has increased its footprint on the African continent by signing 16 operators, spanning right across the continent from countries like Algeria, Morocco, Ivory Coast, Botswana, Mauritania, Sudan, Mali, Gabon, Nigeria, South Africa, Reunion Island and Burkina Faso to name a few.


Embraer signs maintenance agreement for Rolls-Royce AE3007 engines in Brazil

September 1, 2014 · 65 Views

The Embraer Executive Jets Service Center, in São José dos Campos, São Paulo, was named an authorized Rolls-Royce line maintenance center for the AE3007 engines in Brazil. The agreement allows Embraer to perform Rolls-Royce’s warranty or CorporateCare program services, which covers the cost of replacement parts, labor, as well as scheduled and unscheduled maintenance. The ERJ 145 family of jets and the Legacy 600/650 use AE3007 engines. “The new partnership between Embraer and Rolls-Royce seeks to assure efficient operations and convenience for our customers,” said Edson Carlos Mallaco, Director of Customer Support and Service – Embraer Executive Jets. “We are constantly investing in providing services in the region through integrated solutions and a highly qualified team. We hope to exceed the expectations of our operators.”


Imperium and Barfield announce distribution agreement

September 1, 2014 · 63 Views

Imperium announced the signing of a global distribution agreement with Barfield, a recognized worldwide market leader in ground support test equipment  that will be distributing Imperium’s line of ultrasound cameras for nondestructive testing (NDT) usage. “Imperium’s NDT products make ultrasonic testing extremely simple, without sacrificing any quantitative data. Imperium’s highly innovative products and OEM approval led us to decide to focus our efforts with them,” said Lew Wingate, Vice President of Distribution and GSTE for Barfield. Barfield’s distribution of Imperium’s products will focus initially on the Americas.


Macquarie AirFinance agrees SLB with AirAsia X for three A330-300s

September 1, 2014 · 130 Views

Macquarie AirFinance, a global aircraft leasing company based in Dublin, Ireland,has finalised agreements with AirAsia X, the Malaysia-based long-haul, LCC for purchase and leaseback of three, new Airbus A330-300 aircraft, powered by Rolls-Royce Trent engines.  The aircraft are scheduled for delivery in February 2015, April 2015 and September 2015.


Med-View Airline signs heavy maintenance agreement with JorAMCo

September 1, 2014 · 139 Views

JorAMCo provided Med-View Airline, the Nigeria based carrier, with base maintenance services for one Boeing 737 aircraft during the month of August. The maintenance services provided by JorAMCo, include C check tasks in addition to SBs and Ads.


Finnair signs agreement with OSM Aviation on outsourcing of cabin service

September 1, 2014 · 91 Views

Finnair and the Norwegian crew management company OSM Aviation have signed an agreement on outsourcing of cabin services. In the first phase, OSM Aviation will provide cabin service for Finnair’s routes to Hong Kong and Singapore. The cabin crew for these routes will be recruited to OSM Aviation’s bases in Asia. The parties intend to expand their cooperation in the future in both long-haul and short-haul traffic. Finnair has tried to negotiate cost savings with its cabin personnel since 2011. The savings negotiations ended in spring 2014 with no result, and Finnair said in June that the company will go ahead with cabin service outsourcing according to the plans discussed in employee codetermination proceedings. The aim is to build a healthy cost structure for Finnair and enable profitable growth, which would also create new jobs.


Transaero increases net profit by 61% for first half of 2014

September 1, 2014 · 96 Views

Transaero Airlines has published its financial statement for the first six months of 2014 under International Financial Reporting Standards. Revenue from air operations and other services reached 48,602,491 thousand rubles, a 6.79% increase over six months of 2013, passenger traffic grew 4.8% over the same period of 2013 and revenue from cargo transportation increased by 20%. Net profit amounted to 750,471 thousand rubles, a 61% growth. EBITDA amounted to 8.225bn rubles (+16.57%), while EBITDA margin grew 1,42 points to 16.92%. EBITDAR increased to 9.978bn rubles (+17.33%), while EBITDAR margin grew 1,84 points to 20.53%. Cash flow from operating activities reached 5,764,644 thousand rubles (+5.4%).


Angus King, Sales Director for Thomas King Associates, passed away

September 1, 2014 · 98 Views

Angus King the Sales Director for Thomas King Associates, a family run U.K based business, sadly passed away after a short illness. TKA specialise in aircraft interior products supply and Angus was well known and respected within the Aviation Industry. Angus worked with Airlines, MRO’s, Galley and Monument Manufacturers and Aircraft Manufacturers worldwide. He will be greatly missed by his family, friends, colleagues and customers.


Boeing, Xiamen Airlines celebrate first 787 Dreamliner delivery

September 1, 2014 · 89 Views

Boeing and Xiamen Airlines celebrated the delivery of the airline’s first 787 Dreamliner. With the delivery of its first 787-8, Xiamen Airlines becomes the third Chinese airline to operate the 787. The airline will use the 787 on long-haul routes from its Fujian province base to Europe, North America and Australia.


Rolls-Royce tests composite fan systems for Advance and UltraFan at John C. Stennis Space Center

September 1, 2014 · 86 Views

The Rolls-Royce composite carbon/titanium (CTi) fan system for the Advance and UltraFan engine designs has completed its most recent phase of testing at the company’s outdoor jet engine test facility at the John C. Stennis Space Center in Mississippi. The fan system undertook crosswind testing on a Trent 1000 ALPS (Advanced Low Pressure System technology) engine, ahead of flight testing on the Rolls-Royce 747 flying test bed based in Tucson, Arizona. The CTi fan system includes carbon/titanium fan blades and a composite casing that reduce weight by up to 1,500lb per aircraft, the equivalent of carrying seven more passengers at no cost. The Advance engine design will offer at least 20% less fuel burn and CO₂ emissions than the first generation of Trent engine and could be ready for entry into service from 2020. UltraFan a geared design with a variable pitch fan system, is based on technology that could be ready for service from 2025 and will offer at least 25% per cent less fuel and CO₂ emissions against the same baseline.


EASA announces new organisation

September 1, 2014 · 194 Views

The European Aviation Safety Agency (EASA) revealed on September 1st, 2014 a new organisation which aims at preparing the Agency for the challenges of the coming years. The new organisation will enable the Agency to engage more pragmatically with the aviation industry. A strategy and safety management directorate has been created in order to strengthen EASA’s overall strategy and to promote a data driven and performance-based approach to managing safety. All regulatory functions have been integrated across the different aviation domains and more homogeneity has been introduced to better enable the Agency to speak with one voice. Patrick Ky, EASA Executive Director declared: “this new organisation will reinforce the role of EASA at the centre of the European aviation regulatory system, in partnership with the member states and in support of the growth and development of the aviation industry”. Aviation is constantly evolving with innovative business models and new technologies in order to achieve greater efficiencies. In turn, authorities are faced with the challenge to be more efficient and flexible to enable further growth for aviation. The new organisation which becomes effective on September 1st, 2014, also prepares EASA for new opportunities to enhance its role. These may derive from the ongoing revision of the Agency’s founding regulation that will be finalised in the first quarter of 2015.


Morpho acquires Dictao

September 1, 2014 · 112 Views

Morpho (Safran) finalized the acquisition of Dictao, the leading publisher of software solutions for security and digital trust. Based in France, Dictao has 100 employees and offers innovative solutions for strong authentication, secure online transactions and secure archiving, for both public and private sector customers worldwide. The acquisition of Dictao reflects Morpho’s development strategy and confirms its leadership in the security market. The two companies’ digital identity businesses are highly complementary, from ID document management to use. Morpho will now be able to offer an even more extensive range of highly secure solutions to both governments and private sector companies (banks, insurance firms, manufacturers, etc.). These synergies will also foster excellent growth potential, especially in international markets because of Morpho’s global presence. “Dictao is a trusted partner, working with us for many years as a supplier of digital security products for large-scale ID programs,” said Philippe Petitcolin, Chairman and Chief Executive Officer of Morpho. “This acquisition clearly reflects our commitment to covering all aspects of digital identity, allowing us to guarantee more secure and convenient authentication for all online transactions.” Jacques Pantin, Chairman and Chief Executive Officer of Dictao, added: “By joining Morpho we will amplify the technical excellence and innovative mindset that have driven our success for more than a decade. We now have the resources needed to support our international development strategy. The highly complementary nature of our businesses will enable us to offer customers complete, integrated security and authentication solutions, tailored to the needs of the new digital economy.”


Martin Sutherland, Managing Director, BAE Systems Applied Intelligence, will leave the Company

September 1, 2014 · 141 Views

BAE Systems announced that Martin Sutherland, Managing Director, BAE Systems Applied Intelligence, will leave the Company on September 30th, to take up a position as Chief Executive, De La Rue plc. Kevin Taylor, Group Strategy Director, responsible for Executive Committee oversight of the Applied Intelligence business, will assume the role of Managing Director, Applied Intelligence on an interim basis with immediate effect, to oversee its continued growth and strategic development. Kevin Taylor commented: “BAE Systems Applied Intelligence has rapidly grown to become a leading provider of cyber, intelligence and digital solutions in recent years. The business has outstanding growth prospects and I look forward to continuing to guide it through the next stage of its strategic development. Martin has played an important role in the development of the business and leaves with our best wishes for the future.”


Gama Aviation expands charter fleet with addition of multi-role King Air 350C

September 1, 2014 · 166 Views

Gama Aviation, the global business aviation company, has expanded its charter fleet offering with the addition of a multi-role Beechcraft King Air 350C. The King Air 350C, is being offered by Gama Aviation for both utility and corporate use. It will be available in one of four optional configurations; Executive, Commuter, Cargo and Medevac. The latest addition to the Gama Aviation fleet will be based at the company’s landmark Glasgow Airport facility, which formally opened in November 2013. The aircraft is also expected to run regular charters to Europe out of Gama Aviation’s Farnborough Airport HQ.