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Saturday, October 04, 2014

AviTrader Daily Aviation News Alert

This is an overview of all articles linked within the selected daily newsletter.
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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.

First A350 XWB for Vietnam Airlines enters final assembly

October 2, 2014 · 91 Views

Final assembly of the first A350 XWB for Vietnam Airlines has begun at the Roger Béteille Final Assembly Line (FAL) in Toulouse, France. Scheduled for delivery in mid-2015, the aircraft will see Vietnam Airlines become the first Asian airline to fly the A350 XWB and the second operator in the world of the all-new, fuel-efficient widebody. Vietnam Airlines has a total of 10 A350 XWB on order. The aircraft will be operated on the carrier’s premium long range services.

Andrew Levy President and Chief Operating Officer of Allegiant Travel Company resigns

October 2, 2014 · 161 Views

Andrew C. Levy, President and COO of Allegiant Travel Company, has resigned from his executive positions with the company and will step down from the Allegiant board. For the past 13 years, Mr. Levy has led Allegiant in a variety of roles, including most recently as President, Chief Operating Officer and Board Member and previously as Managing Director and Chief Financial Officer. During his tenure, Allegiant has grown from a single aircraft company to a billion dollar leader in the leisure travel space that has posted 46 consecutive profitable quarters. Maurice J. Gallagher Jr., Allegiant’s Chairman and CEO of Allegiant Travel Company and the executive team will temporarily assume his duties while Allegiant, in conjunction with its Board of Directors, identifies Mr. Levy’s successor. Mr. Levy will continue to serve as an advisor to the company for the next several months.

BOC Aviation announces official opening of new London office

October 2, 2014 · 144 Views

BOC Aviation announced the official opening of the new London office, headed by Steven Townend, Deputy Managing Director and Chief Commercial Officer for Europe, Americas & Africa. Mr. Townend, who has been in charge of the revenue side of the company since 2004, has more than 20 years of aviation finance and leasing experience. He will oversee all senior relationships within Europe, Americas and Africa, and have primary responsibility for airline leasing and sales in these regions.Mr. Townend will also lead the company’s strategy for developing capital market products for both airline customers and third-party investors. This includes building the company’s managed aircraft business through the sale of portfolios of aircraft into the public assetbacked securities (ABS) markets. To expand BOC Aviation’s capabilities in these areas, the company has appointed Matthew Baumgarth as Senior Vice-President, Capital Markets. He brings with him 17 years of experience in the aviation finance industry with North American airlines and investment banks. He joins Tim Pickston, Senior Vice-President for Aircraft Sales, to be based in London and will report to Mr. Townend.

Boeing to increase 737 production rate to 52 per month in 2018

October 2, 2014 · 213 Views

Boeing will increase production on the 737 program to 52 airplanes per month in 2018 in response to strong market demand from customers worldwide. Once the increase is implemented, the 737 program is expected to build more than 620 airplanes per year. “The 737 Next-Generation and 737 MAX airplanes offer our customers unparalleled efficiency and reliability,” said Boeing Commercial Airplanes President and CEO Ray Conner. “Whether for fleet growth or for replacement needs, the 737 enables market success for carriers due to lower operating economics and by providing a better passenger experience.” Boeing currently produces 42 airplanes per month at its Renton, Wash., factory, and the company previously announced plans to increase the production rate to 47 airplanes per month in 2017. The 2014 Current Market Outlook, Boeing’s long-term forecast of air traffic volumes and commercial airplane demand, projects a need for more than 25,000 single-aisle airplanes over the next 20 years, worth $2.56 trillion total market value.

Alaska Air Group reports September 2014 operational results

October 2, 2014 · 68 Views

Alaska reported an 8.3% increase in traffic on a 9.2% increase in capacity compared to September 2013. This resulted in a 0.7 point decrease in load factor to 82.1%.

Horizon reported a 5.1% increase in September traffic on a 6.8% increase in capacity compared to September 2013. This resulted in a 1.3 point decrease in load factor to 78.6%.

Italian Army takes delivery of first two ICH-47F Helicopters

October 2, 2014 · 71 Views

The Italian Army has taken delivery of its first two ICH-47F Chinook helicopters during an official ceremony held at Vergiate plant (Italy) on October 2nd. The start of deliveries set a major milestone in the strategic partnership between the Company and the Service, providing a significant contribution to the modernisation of the Italian Army helicopter fleet giving the customer further enhanced capabilities. The overall Italian Army’s ICH-47F programme is based on an order for 16 units. The contract also includes a five year logistic support service. Deliveries of all aircraft will be completed in 2017. The ICH-47Fs will be operated by the Italian Army Aviation 1st Regiment “Antares” based in Viterbo and they will replace the CH-47C Chinooks that have been in service since 1973.

VECA Airlines award 5 year power-by-the-hour contract to AJW Aviation

October 2, 2014 · 164 Views

AJW Aviation, a specialist in transforming aviation efficiency, has signed a five year power-by-the-hour contract with new start-up Salvadorian operator, VECA Airlines. The contract will be managed by AJW’s Miami base and will cover the supply of spare parts for the airline’s fleet, providing essential support for the El Salvador flag carrier. VECA Airlines was established in late 2013 and has its airline hub located in San Salvador at Monseñor Óscar Arnulfo Romero International Airport. A full support programme, complemented by onsite component stock, will commence on October 15th, 2014 when the second aircraft is handed over following preparation in Miami.

Avanti Air will start operation with Fokker 100

October 2, 2014 · 208 Views

Avanti Air GmbH & Co. KG based at Siegerland-Flughafen in Germany will start operations with one Fokker 100 aircraft in January 2015. In the last 5 to 6 years the aircraft has been operated by OLT Express and will be used by Avanti Air for wet-lease and charter flights. Sinah Gotthardt, Manager Sales, Marketing, PR: “We are delighted to announce our Fokker 100 acquisition, with planned entry into service in January 2015. We see a market for the hundred seated aircraft segment within Europe. The main focus is in operating new potential charter and wet-lease operations. We will continue to offer tailor made services to our client requirements and be sure to make them suitable with the Fokker 100, our first large jet aircraft in fleet. In Fokker we have gained another aircraft type that entirely expands our portfolio. The aircraft adds to our existing ATR fleet and allows us to offer aircraft from 60 to 100 seats to our customers for their requirements. With positive market acceptance we consider to add a second Fokker to our fleet.”

Lufthansa Technik names new Senior Vice President VIP & Executive Jets

October 2, 2014 · 171 Views

Lufthansa Technik’s new Senior Vice President VIP & Executive Jet Solutions is Walter Heerdt, who has headed the Marketing and Sales department since 2003. With this step, Heerdt, who holds a degree in engineering, succeeds Dr. Hans Schmitz, who is retiring early after seven years at the helm of Lufthansa Technik’s VIP division.

International Jet Management and LBAS sign contract

October 2, 2014 · 113 Views

International Jet Management (IJM) will become the first operator in Europe of a new Bombardier Challenger 350 business jet. For maintenance, overhaul and repair services, IJM and Lufthansa Bombardier Aviation Services (LBAS) signed an agreement. Christoph Meyerrose, LBAS’ Managing Director said: “LBAS was the first maintenance provider for Challenger 300 aircraft in Europe and has already performed two 8-year inspections this year. Our refined knowledge of the aircraft is the foundation to provide high quality in the industry to meet the expectations of our customers.”

Interesting timing of FAA’s request for 1300 Boeing aircraft to replace displays

October 2, 2014 · 184 Views

Only days after 77 members of the US House of Representatives pushed for the total ban on all forms of phone calls being made from airplanes, the FAA have decided to demand that cockpit displays in over 1300 Boeing aircraft be replaced over the next five years. The reason why these particular aircraft have been targeted is because of an apparent susceptibility of the Honeywell display to blanking out when it meets with Wi-Fi interference, despite claims by Honeywell to the contrary. The FAA have indicated that the actual cost of the parts to take the place of existing displays is $10,200 per plane, and that the work can be done within a three hour window.
However it is not the overall cost – US$13.75m for the 737s and 777s – that is of the greatest concern to many, it is more the question of whether cell and smartphone calls are going to be allowed on flights. A precarious situation is looming where for safety reasons the FAA are able to enforce these display changes, yet the FCC (Federal Communications Commission) hold the power to allow or disallow passenger use of Wi-Fi technology on board planes, and the Department of Transportation can and may well ban the use of cell and smartphone use for all calls. It is hard to believe that the FAA would demand an expenditure of US$13.75m that would automatically be irrelevant if the FCC were to ban the use of Wi-Fi technology on planes. Reading between the lines it would seem that Wi-Fi access will be made available for internet access for smartphones, tablets and laptops, but not for phone calls.

Vector Aerospace and Orange County (CA) Sheriff’s Department sign AS350 and UH-1H MRO support contract

October 3, 2014 · 98 Views

Vector Aerospace Corporation one of the world’s leading independent providers of aviation maintenance, repair and overhaul (MRO) services, signed a five year agreement with Orange County Sheriff’s Department to conduct maintenance, repair and overhaul on their AS350 and UH-1H helicopters. “Signing this contract with Orange County Sheriff’s Department highlights Vector’s ability to provide tip-to-tail MRO support for AS350 fleets,” states Chris McDowell, vice president, sales & marketing at Vector Aerospace Helicopter Services – North America (“HS-NA”). With extensive qualifications and experience on Arriel 1 & 2 engine platforms, AS350 components and UH-1H aircraft, we are looking forward to supporting the MRO requirements of Orange County over the next 5 years.”

Delta reports operating performance for September 2014

October 3, 2014 · 71 Views

Delta Air Lines reported financial and operating performance for September 2014. Traffic in September increased 5.4% compared to the same period in 2013, while capacity increased 4.9%. The load factor for September increased slightly by 0.4 points to 83.7%.

Sikorsky unveils S-97 RAIDER helicopter

October 3, 2014 · 135 Views

Sikorsky Aircraft unveiled the first of two S-97 RAIDER helicopter prototypes on October 2nd, signaling the start of activities in the program’s test flight phase and a major step toward demonstrating the new – and first – armed reconnaissance rotorcraft featuring X2 Technology designed for military missions. Based on Sikorsky’s rigid X2 rotor coaxial design, the S-97 RAIDER helicopter features next-generation technologies in a multi-mission configuration (armed aerial scout or light assault), capable of carrying six troops and external weapons. The coaxial counter-rotating main rotors and pusher propeller provide cruise speeds up to 220 knots (253 mph), more than double the speed of conventional helicopters. Sikorsky will offer the RAIDER aircraft as a replacement for the U.S. Army’s OH-58D Kiowa Warrior helicopter fleet based on the Army’s future operational and financial priorities, and for the special operations platform.

Gregory H. Gernhardt named President, Pratt & Whitney Commercial Engines

October 3, 2014 · 223 Views

Pratt & Whitney appointed Gregory H. Gernhardt, president, Pratt & Whitney Commercial Engines, effective immediately. Gernhardt will report to Pratt & Whitney President Paul Adams and succeeds David M. Brantner, who has decided to depart the company. Gernhardt will be responsible for all Commercial Engines program management, sales and marketing activities, and will continue to lead Pratt & Whitney through the transformation of its commercial engine business. He and his team will support airlines and OEM aircraft manufacturers with the company’s renewed portfolio of Pratt & Whitney and IAE engines.

Pratt & Whitney signs $16bn in supplier long-term agreements

October 3, 2014 · 193 Views

Pratt & Whitney has signed an additional $6bn in long-term agreements since May. In total, Pratt & Whitney has signed more than 135 agreements with a projected spend of $16bn to support the company’s expected production increase. The agreements, which are with key product suppliers from around the world, will help the company increase capacity as it prepares to more than double engine production over the next decade. “Our suppliers make up a critical part of our future production capacity and by signing long-term agreements we are enabling them to invest in equipment, people and training in order to produce and deliver perfect-quality components,” said Danny Di Perna, senior vice president, Engineering and Operations. “These agreements secure sources of parts and components for years to come and ensure the capacity investments to support our production ramp.” The agreements are with high-performing suppliers who will supply key parts and components for all Pratt & Whitney products from the PurePower engine family to the F135 military engine to auxiliary power units. These suppliers have committed to the highest performance and ethical standards.

AeroCentury announces aircraft purchase

October 3, 2014 · 158 Views

AeroCentury, an independent aircraft leasing company, announced the purchase of a new ATR 42-600 aircraft. The aircraft was purchased from an existing Indonesian customer immediately upon delivery from ATR and simultaneously leased back to the customer.

easyJet posts revised profit forcast

October 3, 2014 · 176 Views

easyJet reported revenue per seat at constant currency for the three months to September 30th, 2014 is expected to grow by around 1.5% driven by a strong finish to the summer season. Revenue per seat at constant currency for the six months to 30 September 2014 is expected to grow by around 2%. Cost per seat excluding fuel at constant currency for the six months to 30 September is expected to increase by c.0.7%. This strong performance was driven by the continued delivery of easyJet lean initiatives offset by increases in regulated airport charges, navigation and the costs associated with the increased load factor in the period. It is expected that easyJet’s unit fuel cost in the six months to 30 September 2014 will be approximately £2m favourable compared to the six months to September 30th, 2013; and that the impact of exchange rate movements (including those related to fuel) will be around £15m favourable compared to the six months to September 30th, 2013. The impact of the Air France pilots’ strike in September is expected to increase easyJet’s revenue by £5m as Air France passengers switched to easyJet. This combined with the strong finish to the year means that the Board’s expectation is for a pre-tax profit for the twelve months ended September 30th, 2014 of between £575m and £580m compared with the previous guidance of £545m to £570m. In line with its revised dividend policy, easyJet expects to declare a dividend in respect of the year ended September 30th, 2014 based on a pay-out ratio of 40% of profit after tax.

Travelers told it is still safe to fly during Ebola outbreak

October 3, 2014 · 313 Views

It is easy to forget that the effects of the world’s worst outbreak of the Ebola virus stretch well beyond the current tragic loss of over 3,000 people. Airlines are now heavily promoting the fact it is still remarkably safe to fly and that Ebola only becomes contagious once symptoms become obvious. With an incubation period of up to 21 days before the disease presents symptoms, it is likely the news that the USA has diagnosed and subsequently quarantined their first victim will not be confined to a solo event. Yes, airports are doing their bit to help – it is believed Addis Ababa, Guinea, Sierra Leone, Nigeria and Liberia all have heat scanners which passengers must pass through before being allowed to board any plane – an elevated temperature being one of the earliest symptoms of Ebola.
Despite the World Health Organization declaring that it is still very safe to travel, Brussels Airways remains the only European carrier to offer flights to and from Guinea, Sierra Leone and Liberia. The economic viability of commercial flights is on a tightrope with Air Maroc reporting that flights to these same three destinations were empty and only the return flights were full. Emirates have acknowledged a modest reduction in business with flights to and from surrounding areas, while Ethiopian Airlines, which covers some 49 African countries, reports that though fliers were understandably more cautious, flights were still full and they were not experiencing any cancellations.
Once again it would appear that economics and not common sense dictate how the world reacts to the largest outbreak of the Ebola virus. Would it not make sense to cancel all but essential air traffic in the region worst affected? Stopping internal as well as international flights would dramatically reduce the risk of the disease spreading further and more rapidly, giving health authorities a greater chance of containing the outbreak. It would seem that the 2003 SARS outbreak, which resulted in approximately USD$7 bn in lost revenue to US and Asia-Pacific airlines, is too stark a reminder of what the cost of shutting down operations would be.