Wednesday, September 21, 2011
AviTrader Daily Aviation News Alert
This is an overview of all articles linked within the selected daily newsletter.
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December 19, 2014 · 44 Views
In a stock exchange disclosure, IAG has confirmed that it had “submitted a proposal” to make bid for Aer Lingus, adding though that it had been “rejected by the board of Aer Lingus,” continuing to say that “There can be no certainty that any further proposal or offer will be forthcoming. A further statement will be made if and when appropriate.” Aer Lingus’ Board, headed by chairman Colm Barrington, responded by saying in a stock market disclosure that “The board has reviewed the Proposal and believes that it fundamentally undervalues Aer Lingus and its attractive prospects. Accordingly, the Proposal was rejected on 16 December 2014”. Aer Lingus also stated that “Shareholders are strongly advised to take no action.” The bid is understood to be in excess of €1bn, while shares in Aer Lingus at one point rose over 21% on the news, closing yesterday 9% higher.
The move for Aer Lingus has been described as “highly opportunistic” by David Holohan, Head of Research at stockbroking firm Merrion Capital, based primarily on the fact that the airline is losing a highly respected Chief Executive in Christoph Mueller who is moving to troubled Malaysia Airlines next year. The airline is also struggling to settle a pension dispute that has been a cause of much industrial unrest at the airline. The Irish Government own a 25.1% stake in Aer Lingus, while Ryanair, who have made three separate attempts to acquire the airline, are awaiting the result from the UK Court of Appeal regarding a decision forcing them to reduce their stake in the airline from 29.8% to 5% which is due any day, but which may be delayed until January.
December 2, 2014 · 164 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.
November 5, 2014 · 130 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.
March 25, 2014 · 84 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.
March 7, 2014 · 61 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.
February 26, 2014 · 63 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).
January 29, 2014 · 52 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.
January 9, 2014 · 43 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.
July 5, 2013 · 49 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.
June 26, 2013 · 31 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.
May 22, 2013 · 27 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.
September 19, 2011 · 16 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.
September 19, 2011 · 12 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.
September 19, 2011 · 8 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.
September 19, 2011 · 10 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.
September 19, 2011 · 10 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.
September 19, 2011 · 11 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.
September 19, 2011 · 15 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.
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.
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.
September 19, 2011 · 12 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.
September 19, 2011 · 14 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%).
September 19, 2011 · 12 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.
September 19, 2011 · 10 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.
September 19, 2011 · 10 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.
September 19, 2011 · 7 Views
September 20, 2011 · 16 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.
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.
September 20, 2011 · 9 Views
September 20, 2011 · 16 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.
September 20, 2011 · 16 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.
September 20, 2011 · 19 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.
September 20, 2011 · 11 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.