Wednesday, September 21, 2011

AviTrader Daily Aviation News Alert

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14% 3Q drop in net profit for Norway’s budget carrier Norwegian Air Shuttle

October 23, 2014 · 61 Views

Despite making a net profit of NOK373.8m ($57m) for the third quarter, Budget carrier Norwegian Air Shuttle’s figure was down 14% compared to the NOK435.9m ($66 million) reported for the same period in 2013. Additionally, the net loss for the nine months up to and including 30th September was NOK91.4m ($14m), considerably down on the profit of NOK515.5m posted for the same period a year ago.
Norwegian Air Shuttle was quick to explain the deficit and put it down to a number of reasons. Firstly there were costly wet leasing replacement aircraft being used because of technical problems with the Boeing 787 Dreamliner fleet. These problems, financially, extended to costs incurred for hotel bills and food and drink payments for severely delayed passengers. Once you add the fact that the Norwegian Krona had weakened as a currency to what Norwegian Air Shuttle described as “considerable” cost implications of delayed approval from the US Department of Transportation, and you begin to get a clearer picture of why this has not been a good time for the airline. The airline has indicated it is prepared to wait as long as is needed to obtain U.S. Department of Transportation (DOT) approval for its Ireland-based long-haul subsidiary airline, Norwegian Air International (NAI), to fly between Europe and the U.S.A., but the delay is proving very costly.
However it wasn’t all doom and gloom for the Norwegian airline as they indicated there had been “strong growth” in all European markets. This resulted in a load factor rise to almost 85%, in spite of a capacity increase of 36% in the third quarter. Third-quarter operating turnover was up 30% year-on-year to NOK6.34bn, though operating costs were also up 38% to NOK5.12bn and unit cost for this last quarter down 1% (4% excluding fuel). Operating revenue for the year to date was up 27% compared with a year ago to NOK15bn, though operating costs increased 44% to NOK13.4bn and unit cost down 2% (3% excluding fuel). Yield was down 11% for the quarter and 16% for the year-to-date. The number of passengers for the quarter was up 17% to just over 7 million compared to just over six million the previous year. For the year to the end of September the passenger numbers were up 19% to 18.33 million compared to last year.


Air France-KLM selects GEnx engines for Boeing 787 fleet

March 25, 2014 · 63 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 · 47 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 · 48 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 · 40 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 · 35 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 · 37 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 · 22 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 · 18 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.


Randy Shelton joins Comlux Aviation Services as Regional Sales Manager

September 19, 2011 · 13 Views

Comlux Aviation Services LLC, based in Indianapolis, announced the appointment of Randy Shelton to the Regional Sales Manager position. Randy Shelton has over 27 years of sales experience and held prior positions of Maintenance and Avionics Sales Representative for Pentastar Aviation, Regional Sales Manager for Gulfstream Aerospace Corporation, and Regional Sales Manager for KC Aviation. He holds an FAA Private Pilot license.


Somon Air selects IFE Services as in-flight entertainment provider

September 19, 2011 · 10 Views

IFE Services has been selected by Somon Air to meet all of its in-flight entertainment (IFE) requirements. From this month, IFE Services will supply the Tajikstan-based airline with the latest blockbuster releases from Hollywood, as well as classic movies, TV programmes and a selection of audio channels. Content will play on the airline’s onboard audio visual on-demand (AVOD) system and be available to enjoy in English, Russian and Arabic. IFE Services will also meet all of the airline’s digital encoding requirements. Somon Air, which was launched in 2008, is the first private airline company in Tajikistan and has regular flights to Moscow, Dubai, Frankfurt-am-Maine, Istanbul and other destinations.


TAM MRO receives new certification from Transport Canada Civil Aviation

September 19, 2011 · 5 Views

TAM MRO, TAM Airlines’ maintenance unit, has renewed its certification to provide services for airplanes registered in Canada as well as their components. The new authorization from the Transport Canada Civil Aviation (TCCA) is valid until 2012. Issued for the first time in August 2010, the certification from TCCA authorizes TAM MRO to perform maintenance – as well as specialized services such as electrolytic deposition, welding and carpeting – on the following aircraft models registered in Canada: Airbus A318, A319, A320, A321, A330; Boeing 767, ATR-42 and Fokker-100.


ESMA Aviation Academy extends training offer in Africa with Hi-Fly Marketing

September 19, 2011 · 7 Views

ESMA Aviation Academy reported the extension of its network to Africa through a representation agreement inked with Hi-Fly Marketing, a South African based aviation services company. With strong European roots and a broad international activity, ESMA can already capitalize on serious African references in its areas of competences:
- Train Flight dispatcher trainer for Air Mali, Air Ivoire and Air Burkina
- Ab Initio Pilot trainings for Algerian, Tunisian, Moroccan and Cameroon individuals
- Refresh Cabin Crew courses for Trans Air Congo
- Ab Initio Cabin Crew courses for Air Guinee International
- European Part 66 Aircraft Maintenance License for Aviation Handling Services in Senegal

ESMA and Hi-Fly Marketing will work together with governments, airlines, airports and other operators towards harmonizing the aviation training in Africa and will propose actions to be taken to standardize and assure quality, safety and compliance with the highest level of requirements of civil aviation and training technology. Priority focus will be in the areas of Maintenance and Flight Dispatcher Trainings.


AWAS delivers 125th Boeing aircraft

September 19, 2011 · 6 Views

Dublin based global aircraft lessor AWAS has received its 125th Boeing aircraft, a new 737-800, that was delivered to current customer Garuda Indonesia.  This aircraft is also Garuda’s first to be equipped with the advanced Boeing Sky Interior.


Macquarie AirFinance appoints Liam Kavanagh as Head of Trading

September 19, 2011 · 10 Views

Macquarie AirFinance released that Liam Kavanagh has joined the company in Dublin as Senior Vice President of Trading, reporting to the CEO. He will be responsible for sales of leased aircraft to investors and acquisitions of aircraft from other lessors.


Virgin America reports second quarter 2011 financial results

September 19, 2011 · 11 Views

For the second quarter of 2011 Virgin America recorded a $6.0 million operating loss and an operating margin of (2.2)%.  The airline achieved revenue growth during the quarter, with a 46% increase in operating revenue as compared to the second quarter of 2010. Total fuel costs increased by 62% and the Company’s average price per gallon of fuel increased by 26% year-over-year.  The increase in fuel costs were the primary factor in a $5.6 million increase in Virgin America’s operating loss, as compared to the second quarter of 2010. The airline ended the quarter with $26 million in unrestricted cash and $53 million in total liquidity.


AerCap will initiate new share repurchase program

September 19, 2011 · 6 Views

AerCap Holdings N.V. released that its Board of Directors approved additional share repurchases above the previously announced amount of $50 million. The additional repurchase program will run through December 30, 2011 and will allow total repurchases of up to $100 million in 2011, inclusive of amounts repurchased through the previously announced programs. The total amount for shares repurchased through September 16, 2011 under the previous programs was $48.0 million.


Dale Klapmeier named CEO at Cirrus Aircraft

September 19, 2011 · 7 Views

Cirrus Aircraft reported that Co-Founder Dale Klapmeier has been named Chief Executive Officer. Brent Wouters, previously President and Chief Executive Officer, is no longer with the company.


Singapore Airlines A380 to fly New York – Frankfurt – Singapore

September 19, 2011 · 9 Views

Singapore Airlines announced the launch of the Airbus A380, on the New York (JFK) – Frankfurt – Singapore route, operating from January 16, 2012. New York will be Singapore Airlines’ tenth global destination to receive the superjumbo, and the second point in the U.S., after Los Angeles was added to the list earlier this year. The Singapore Airlines A380 has proven exceptionally popular with customers, with strong loads on all routes it serves. System wide, more than 5.6 million customers have flown on the Airline’s A380s since the inaugural flight in October 2007 to Sydney.The daily A380 flights will replace an existing daily Boeing 747-400 service to New York’s JFK Airport via Frankfurt, representing a daily increase of 25% in seat capacity.


Airbus sees demand for over 27,800 aircraft in the next 20 years

September 19, 2011 · 7 Views

In the midst of troubled financial markets, Airbus foresees strong ongoing demand for commercial aircraft. According to its latest Global Market Forecast (GMF), by 2030 some 27,800 new aircraft will be required to satisfy future robust market demand. The combined value of the over 26,900 passenger aircraft (above 100 seats) and more than 900 new factory built freighters forecast by the GMF is US$3.5 trillion. As a result, by 2030 the global passenger fleet will more than double from today’s 15,000 aircraft to 31,500. This will include some 27,800 new aircraft deliveries of which 10,500 will be needed for replacing older less fuel efficient aircraft. The trend towards larger aircraft will continue, in order for the aviation sector to keep pace with future growth in demand.

People need and want to fly more than ever before. Over the next 20 years the aviation sector is expected to remain resilient to cyclical economic conditions as in the past. Airbus forecasts that Revenue Passenger Kilometres (RPKs) will grow by an average 4.8 per cent per year, which is equivalent to traffic more than doubling in the next 20 years. Factors driving demand for new aircraft include population growth with increasing wealth, dynamic growth in emerging economies, strong continued growth in North America and  European markets, greater urbanization and a more than doubling in the number of mega cities by 2030. Drivers also include the ongoing expansion of low cost carriers, and the need to replace older less efficient aircraft with new eco-efficient models in established markets.

Geographically, over the next 20 years, Asia-Pacific will account for approximately 34% of demand, followed by Europe (22%) and North America (22%). By share of passenger traffic, Asia-Pacific will be the biggest market with 33%, followed by Europe (23%) and North America (20%).


Bombardier’s Global Express XRS Aircraft gets green light from US Air Force

September 19, 2011 · 9 Views

Bombardier Aerospace released that its Global Express XRS (BD-700-1A10) aircraft was granted the new military designation E-11A from the United States Air Force. The Global Express XRS (BD-700-1A10) aircraft will be used as an overhead communications-relay platform in Southwest Asia. The aircraft carries Northrop Grumman’s Battlefield Airborne Communications Node, or BACN, which allows disparate battlefield communications systems to share data.


Pratt & Whitney Canada and AVIC Engine Holdings create new MRO facility in China

September 19, 2011 · 9 Views

Pratt & Whitney Canada (P&WC) and China Aviation Engine Holdings Corporation (AVIC Engine Holdings) announced the creation of a new joint venture to be located in Zhuzhou, Province of Hunan, People’s Republic of China. The new maintenance, repair and overhaul (MRO) will be called Zhuzhou Tonghui Aero Engine Maintenance Company (AEMC) and will provide in-country maintenance, repair and overhaul for civil-certified PT6A and PW100 and series engines. 

The joint venture will be legally structured through SAIC’s ( China National South Aviation Industry Co) subsidiary – General Aviation Engine Company (GAEC) and UTC’s subsidiary – United Technologies Far East (UTFE). AEMC will be owned 75% by GAEC and 25% by UTFE. The joint venture agreement is for 25 years with an option for renewal. AEMC’s board of directors will consist of AVIC representatives and P&WC representatives. P&WC will appoint its general manager and AVIC, the chief financial officer. The remainder of the management team will be jointly selected by the joint venture partners.


First A350 XWB wing lower cover transported to Airbus in Broughton

September 19, 2011 · 6 Views

The first A350 XWB wing lower cover (WLC) has been transported from Airbus’ composites manufacturing site in Illescas, Spain, to Airbus’ wing assembly site in Broughton, UK, where it will be installed on to the wing of the first A350 XWB to fly, MSN001. The wing lower cover was recently produced at Airbus’ Centre of Excellence for composite materials in Illescas, Spain; the part measures approximately 32 metres long by six metres wide, making it the biggest carbon fibre part ever produced in civil aviation. 

The wing cover will be fitted into the A350 XWB wing in Broughton and afterwards will be transported to Bremen (Germany) where the movable parts will be fitted. Later on, the sub-assembly will go to A350 XWB Final Assembly Line in Toulouse, where it will be joined to the fuselage.


Cargolux rejects delivery of first 747-8 Freighter

September 19, 2011 · 7 Views

Cargolux, the Luxembourg-based freight operator, released that its Board of Directors decided to reject the first two Boeing 747-8 Freighters that were scheduled for delivery to Cargolux on 19 and 21 September 2011, due to unresolved contractual issues between Boeing and Cargolux in respect of the aircraft. The financing of the aircraft that is secured through JP Morgan as an Ex-Im Bank guaranteed lender had to be put on hold pending resolution of the contractual issues between Boeing and Cargolux in respect of the aircraft. In the event that the issues cannot be resolved in a timely manner, Cargolux will source alternative capacity to fully meet customer demand and expectations ahead of the traditional high season.

Aeroman breaks ground on hangar expansion

September 20, 2011 · 11 Views

Aeroman, a member of the Aveos Group, is adding a new hangar that will accommodate three new lines for narrow body aircraft at the maintenance facility in El Salvador for both existing aircraft (Airbus 320s and Boeing 737s) and the future Airbus A320 Neo. The expansion will add about 82,000 sq. ft. to the existing 294,541 sq. ft. facility, bringing the total number of narrow body airframe maintenance bays to 11 following completion of the work.

Construction began on September 1st and is scheduled to be completed by April 2012. In keeping with the advanced architectural design of the building, the new extension will also be built on an innovative structural system that will facilitate accelerated construction work on the hangar.


RAK Airways chooses AJ Walter Aviation for full PBH support

September 20, 2011 · 14 Views

A J Walter Aviation continues to develop its business in the Middle East with another service contract, this time with a national carrier of the UAE, RAK Airways. The airline has awarded AJW a three year contract to provide full power-by-the-hour and MBK lease support for its A320 fleet. This new contract will be managed out of AJW’s Middle-East office and will include the additional location in Dubai of extensive A320 inventory, which will mark a significant increase in AJW’s investment in the UAE.


Nordic Aviation Capital acquires one ATR 42-500 from Australia

September 20, 2011 · 9 Views

Nordic Aviation Capital has acquired an ATR 42-500 aircraft in Australia.  The aircraft, serial number 571, was previously operated in the State of Queensland by regional airline Macair. It departed Australia at the weekend, flying from Cairns, North Queensland, to Billund, Denmark, where NAC is based.

Baltic Aviation Academy launches Airbus A320 full flight simulator in Vilnius

September 20, 2011 · 12 Views

Baltic Aviation Academy (BAA), a Type Rating Training Organization, launched Airbus A320 Full Flight Simulator in the aviation centre premises in Vilnius, on September 19th. It is the first Airbus A320 full flight simulator in the Baltic States. Before the installment of the A320 flight simulator to the academy’s headquarters, practical BAA’s A320 type rating training was executed in Southampton, England.

„The decision to relocate  the Airbus A320 flight simulator to Vilnius is focused on leveraging the demand of Central, Eastern European and Russian aviation markets. Pilots’ from neighboring countries will now be able to execute their training in a very close geographical location. The relocation will increase BAA‘s operated A320 training hours by 25% per year”, said Egle Vaitkeviciute, CEO at Baltic Aviation Academy.


ACG establishes U.S. $500,000,000 multicurrency Medium Term Note program

September 20, 2011 · 12 Views

Aviation Capital Group (“ACG”) released that it has filed documentation with and received approval from the Singapore Exchange Securities Limited (“SGX-ST”) to issue unsecured Medium Term Notes from time to time which may be denominated in various currencies and listed on the SGX-ST or other stock exchanges. (Unlisted notes may also be issued pursuant to the Program.) The aggregate nominal amount of such notes will not at any time exceed U.S. $500,000,000. Proceeds from the offering(s) are expected to be used for general corporate purposes.


Lockheed Martin F-35 flight test progress report

September 20, 2011 · 12 Views

Lockheed Martin’s F-35 flight test program moves closer to reaching year-end milestones since the last update issued July 26. Since then, the F-35 Lightning II 5th Generation multirole fighter conducted 124 test flights, bringing the total number of flights for the year to 642. Overall, the F-35 system development and demonstration (SDD) flight test remains on or ahead of plan for 2011, despite 15 days of testing lost due to fleet stand-down after a ground mishap involving the Integrated Power Package (IPP). Flight testing was also interrupted at Naval Air Station (NAS) Patuxent River, Md., because of an Aug. 23 earthquake and severe weather associated with Hurricane Irene. During this period of down time, the flight test teams at all locations continued working through planned modifications and maintenance. As of Aug. 31, the fleet remained 8% ahead of plan in year-to-date (YTD) flights.


Bombardier to reduce CRJ aircraft production rate

September 20, 2011 · 8 Views

Bombardier has taken a measured decision to reduce the production output of its CRJ aircraft, effective January 2012, to align with current market demand. As a result of mitigation actions, which include employee transfers to other current and in development aircraft programs at Bombardier Aerospace, no manpower impact is anticipated. “Although several sales campaigns for our CRJ aircraft are making progress and the long-term prospects for the CRJ program remain positive, the reduced pace of orders has made a review of our production plans necessary,” said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. “For these reasons and after careful consideration, a CRJ aircraft production decrease is warranted in the short term. However, thanks to the support and collaboration of our union representatives, we do not anticipate that the rate reduction will have an impact on our workforce.” Bombardier’s guidance in terms of commercial aircraft deliveries for 2011 of approximately 90 aircraft remains relatively the same. Guidance for 2012 will be provided as usual after the end of the current fiscal year.