Thursday, November 10, 2011
AviTrader Daily Aviation News Alert
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May 5, 2016 · 114 Views
Despite two previous rafts of cuts in senior management which saw 200 management positions eliminated at Rolls-Royce in an attempt to meet target profits, the near break-even for the first six months of this year has seen the implementation of further measures in an attempt to turn round the company’s finances. The company’s intention is to reduce management levels by between 20% and 25% according to comments made by Chief Executive Officer Warren East after the company’s annual shareholder meeting this Thursday.
Further comments from East made it clear that this year’s earnings will be “a little more skewed” toward the second half than Rolls-Royce had anticipated, after the first-half figure will only be “close to break even.” Additionally, East made it clear that if there was going to be a profit shown in the first six months, it will likely be “very, very small.”
Part of the financial problems stem from the slower than anticipated handover rate of the Airbus 350 wide-body jet. Airbus has been beset by delays in delivery of aircraft seating from Zodiac which has had a massive knock-on effect. However, Rolls-Royce are more optimistic that there would be a surge of engine deliveries towards year end. While the Airbus problem accounts for 50% of the engine backlog, transitioning between the Trent 700 and 7000 engines for the current and future A330 models has also had a detrimental effect.
East indicated that Rolls-Royce faces “quite a lot of activity” in 2017 in order to deliver the balance of its savings goal of £150 million to £200 million ($217 million to $290 million), having targeted £30 million to £50 million for 2016, (US$43 million to US$72 million), adding that broader savings potential of approaching £1 billion (US$1.44 billion) was unlikely to be addressed for four-plus years.
The CEO today reiterated full-year guidance that envisages slowing business-jet sales will create a £650 million (US$936 million) hit against earnings, along with a slump in revenue from maintaining regional aircraft and a massive drop in demand at a marine unit which predominantly targets the oil industry.
November 8, 2011 · 62 Views
Air Transport Services Group reported sharply improved third quarter financial results after excluding non-cash impairment charges. Pre-tax losses from continuing operations were $6.7m while net losses from continuing operations totaled $4.8m. Third-quarter 2011 earnings included $27.1m in impairment charges related to reductions in business with DB Schenker that began in September, and $1.9m in unrealized losses on derivative instruments related to the company’s new credit facilities adopted in May. Excluding impairment and derivative charges, pre-tax and net earnings from continuing operations increased by 34% and 22%, respectively, versus the third quarter 2010 results. Adjusted pre-tax earnings were $22.4m excluding the impairment and derivative charges, up from $16.7m in the third quarter of 2010, principally because of increased earnings from ATSG’s freighter leasing business. Net earnings from continuing operations excluding those charges and their related tax effects were $13.9m, up from $11.4m in the third quarter of 2010. Net interest expense under the new credit agreement reached in May 2011 decreased $1.3m for the third quarter compared to a year ago. Pre-tax losses for the quarter generated an income tax benefit of $1.8m. Third-quarter EBITDA, adjusted for non-cash impairment and derivative losses, totaled $48.3m, up 10% from $44.0m in the third quarter of 2010. Revenues increased 17% to $195.5m, including customer-reimbursed costs, with increases evident from each of the company’s reported segments and other business units. Excluding reimbursements, ATSG’s revenues increased 19% to $151.4m.
November 8, 2011 · 65 Views
Comlux Aviation Services,based in Indianapolis, the exclusive jet maintenance center of Comlux, The Aviation Group reported the appointment of Tony Bailey to the Chief Executive Officer position by the Comlux Aviation Services Board of Directors.
November 8, 2011 · 117 Views
Lao Airlines, the national carrier of the Lao People’s Democratic Republic, launched a new era in its history by taking delivery of the first of two new CFM56-5B-powered Airbus A320 aircraft. The airline plans to use the new aircraft primarily on international services to Singapore, Bangkok, Hanoi, and Hong Kong.
November 8, 2011 · 61 Views
CTS Engines, a leading, independent jet engine Maintenance, Repair, and Overhaul (“MRO”) facility, announced the implementation of a $25m capital expansion program. The investment, which will be provided by parent company Neff Capital Management LLC, is expected to greatly increase both the size and scope of the company’s on-site MRO capabilities over the coming year.
The capital expansion program includes the opening of a second, 60,000 square foot facility co-located in Ft. Lauderdale, the acquisition of additional tooling and machinery, including a high-speed blade tip grinder and a vertical machine center, and the building of two high thrust engine test cells in Palm Beach County, Florida. Additional capital has been allocated for the purchase of dedicated spares to support the company’s base MRO business.
November 8, 2011 · 2 Views
Bombardier Customer Services’ maintenance, repair and overhaul (MRO) facilities in Belfast and Dallas have been accredited with the internationally recognised quality standard AS9110 Revision A. Achieving the standard, which defines the quality system requirements at all levels of the MRO process, is an endorsement of Bombardier’s adherence to best practice in the aerospace maintenance industry. The standard’s rigorous assessment process has resulted in improved performance at its Belfast and Dallas MRO sites, across quality and operating efficiencies.
For MRO providers, Revision A raises the bar from the original AS9110 standard. The latest revision is process driven and focuses on risk assessment and mitigation, key priorities for the maintenance sector. Registrants must complete a two-stage audit process and both Bombardier’s Belfast and Dallas MRO facilities have successfully completed the first stage audits with zero non-compliance issues.
November 8, 2011 · 67 Views
Finnair traffic rose by approximately 9.1% October 2011, as the overall capacity grew by 14.8% compared with October 2010. The load factor was down 4.1 pts to 63.4% compared to the same period in 2010. Asian capacity grew by 26.9% and traffic increased by 14.1%.
November 8, 2011 · 142 Views
Republic Airways Holdings has confirmed its order with Airbus to purchase 60 A320neo (New Engine Option) and 20 A319neo aircraft. Republic had signed a letter of intent for the purchase in mid-June. The aircraft, which will be powered by CFM’s LEAP-X engines, will be flown by Republic’s Frontier Airlines subsidiary. Frontier currently operates 59 Airbus A318, A319 and A320 aircraft.
November 8, 2011 · 64 Views
The Spanish Ministry of Environment, Rural Affairs and Fisheries has extended its existing contract with Airbus Military for the maintenance of three C212 aircraft for two more years. These C212 aircraft are used by the Fisheries Inspections Department for the surveillance of Spanish territorial waters. The original contract was signed in 2000 and has already been extended on three previous occasions. The agreement covers the full and complete maintenance of these three aircraft and includes services such as repairs, parts provision, and scheduled and non-scheduled maintenance checks during the two year contract.
November 8, 2011 · 61 Views
For the month of October 2011, Copa Holdings’ system-wide passenger traffic increased 14.7%, while capacity increased 20.8%. System load factor for October 2011 was 74.0%, a 3.9 pt decline when compared to October 2010.
November 8, 2011 · 64 Views
The Company reported operating revenues of $767.9m for the quarter ended September 2011, an increase of 7.9% compared to the same period last year. The increase in revenues is primarily due to a 10.0% increase in Frontier Airlines’ unit revenues. On a GAAP basis, the Company reported net income of $9.0m for the quarter ended September 2011, compared to net income of $21.2m for the same period last year. On an ex-item basis, the Company is reporting net income of $20.4m compared to an ex-item net income of $25.9m for the three month periods ended September 2011 and 2010, respectively.
November 8, 2011 · 63 Views
SAS Group’s traffic increased by 2.6% during October and capacity increased 3.3% compared to the same period last year. The passenger load factor decreased by 0.5 pts in October to 75%. SAS Group carried 2.6 million passengers in October, up 3.9%.
November 8, 2011 · 68 Views
For the third quarter of 2011 Aircastle reported lease rental revenue of $145.9m and EBITD of $137.6m, net income of $22.7m and adjusted net income of $15.4m. The company reported adjusted net income plus depreciation and amortization of $80.2m. During the quarter Aircastle purchased four aircraft for a total acquisition cost of approximately $210m, including two new Airbus A330s from their order stream, sold two aircraft for a total pre-tax gain of $9.0m and entered into new five-year forward starting interest rate swap arrangement for Securitization No. 2 at an average fixed rate of 1.27% effective June 2012.
During the third quarter Aircastle repurchased an additional 2.6m shares of common stock at an average price of $11.37 per share for total cost of $30m, bringing the total number of common shares repurchased to 7.6m shares for a total cost of $90m during 2011.
November 9, 2011 · 50 Views
Vueling reported traffic increase of 5.9% for October 2011, while capacity increased 3.5% year over year. The company has reached a load factor of 76.8%, 1.8 points higher than last year.
November 9, 2011 · 85 Views
Caribbean Airlines took delivery in Toulouse of its first ATR 72-600 aircraft. The Port-of-Spain-based carrier, which becomes one of the very first operators of the new ‘ATR -600 series’, booked earlier this year a US$ 200 million-valued contract for the purchase of a total of 9 of these aircraft. The aircraft are configured with 68 seats and equipped with the new ATR -600s standards of comfort, including In-Flight Entertainment. With this new ATR 72-600 delivery, Caribbean Airlines will start replacing its fleet of five 50-seat Q-300s and introducing newest and most technologically advanced turboprops into its domestic routes. The airline will also add passenger capacity and develop new routes and frequencies within Trinidad and Tobago. Caribbean Airlines will also operate some of its new ATR 72-600s in the domestic route network of Air Jamaica, which was recently acquired by Trinidad and Tobago’s flag carrier.
November 9, 2011 · 54 Views
Aeroflot Russian Airlines integrated its third Sukhoi Superjet 100 aircraft (SSJ100). The aircraft performed its first scheduled flight SU713/714 on route Moscow – Nizhny Novgorod – Moscow. The Sukhoi Superjet 100 MSN 95011 was delivered to Aeroflot under contract with VEB-Leasing JSC on financial lease. The delivered aircraft is designed to carry 87 passengers in a comfortable two-class layout (12 – business class and 75 – in economy class). Aeroflot ordered 30 SSJ100 aircraft in total.
November 9, 2011 · 56 Views
Bombardier Customer Services has extended its repair capability on the inlet cowl for the Trent 700 engine to Hong Kong. Through a strategic service agreement with Hong Kong Aircraft Engineering Company Limited (HAECO), Bombardier is now offering repair capability on the Trent 700 inlet cowl in Hong Kong, in addition to its Belfast and Dallas MRO facilities. As original equipment manufacturer (OEM) of the Trent 700 inlet cowl, Bombardier has been providing a full range of maintenance support for more than 15 years in Belfast, and recently in Dallas. This Bombardier service is now available to be performed at HAECO’s component and avionics overhaul centre in Tseung Kwan O,50 km east of Hong Kong International Airport.
November 9, 2011 · 59 Views
Hong Kong Aircraft Engineering Company (“HAECO”) has entered into an ITM contract with Cathay Pacific Airways to provide Inventory Technical Management (ITM) services for the airline’s fleet of 10 new Boeing 747-8 freighters, to be delivered between 2011 and 2012. The ITM service includes inventory management, reliability management, supply chain management, technical services, and comprehensive 24/7 Aircraft-on-Ground (AOG) support, covering Boeing 747-8F peculiar components for Cathay Pacific’s Hong Kong base and its line station network.
November 9, 2011 · 51 Views
Skyworld Aviation announced that Aerodynamics (ADI) of Michigan has taken delivery of an Embraer ERJ 145 aircraft which has been placed on lease. The aircraft recently completed a long term lease with Republic Airways Holdings of the U.S., and was delivered directly to ADI on behalf of Cymus Holdings of Sweden. Serial number 145169 was originally delivered new to Skyways Sweden in 1999, and then placed on a seven year lease with Republic in 2004. The aircraft started it’s lease term with it’s new operator this week and has been re-registered as N359AD.
November 9, 2011 · 47 Views
For the third quarter ended September 30, 2011, AeroCentury reported total revenues of $6.2m compared with total revenues of $6.90m for the same period a year ago. For the nine months ended September 30, 2011, the Company reported total revenues of $17.9m compared with revenues of $24.8m for the same period a year ago. The Company reported a net loss of $243,000 for the third quarter of 2011, compared to net income of $241,000 for the third quarter of 2010 and a net loss of $2.7m for the nine months ended September 30, 2011, compared to net income of $2.7m for the same period of 2010.
November 9, 2011 · 48 Views
International Lease Finance Corporation has completed an agreement with American Airlines to purchase and leaseback 15 Boeing 737-800 Next Generation aircraft. The agreement covers certain aircraft that American had previously ordered and that have been delivered or are scheduled for delivery during 2012.
November 9, 2011 · 52 Views
Copa Holdings reported net income of US$70.3m for 3Q11, excluding special items, Copa Holdings would have reported an adjusted net income of $90.1m, a 44.3% increase over adjusted net income of US$62.5m. Operating income for 3Q11 came in at US$102.2m, a 38.2% increase over operating income of US$73.9m in 3Q10. Operating margin for the period came in at 21.4%, compared to 20.4% in 3Q10, despite a 37.9% increase in the effective price of jet fuel. Total revenues increased 31.3% to US$476.8m, outpacing a strong capacity expansion.
November 9, 2011 · 48 Views
Willis Lease Finance Corporation , a leading lessor of commercial jet engines, reported third quarter pretax profits grew 19% compared to the year ago period. Net income was $2.3m in the third quarter of 2011, compared to $3.1m in the third quarter a year ago. The current quarter’s net income was reduced by $1.3m due to the inclusion of a tax adjustment related to the accounting for the sale of engines to the recently formed JV with Mitsui. After payment of preferred dividends, net income available to common shareholders was $1.5m compared to $2.3m a year ago.
For the first nine months of 2011, net income grew 35% to $10.9m from $8.0m in the first nine months a year ago. Net income attributable to common shareholders increased 50% to $8.5m from $5.7m in the first nine months of 2010.
November 9, 2011 · 50 Views
ST Aerospace has been certified as a Part 147 Maintenance Training Organisation (MTO) by the Civil Aviation Authority of Singapore (CAAS) and European Aviation Safety Agency (EASA) to provide aircraft type training for narrow-body and wide-body aircraft. The training courses will be conducted at ST Aerospace’s dedicated technical training centre in Paya Lebar, Singapore.
November 9, 2011 · 52 Views
TIMCO Aerosystems, a unit of TIMCO Aviation Services, formally opened its new 120,000 square foot aircraft interiors manufacturing facility in Wallburg (Davidson County), North Carolina, near its Greensboro headquarters. The facility adds new capacity to TIMCO’s existing seat manufacturing operations in Pacoima, California, including assembly of its popular FeatherWeight series of seats which save airlines fuel and maintenance cost through lighter weight and fewer parts.
November 9, 2011 · 52 Views
Boeing received a $1.7bn low-rate initial production (LRIP) award from the U.S. Navy for seven additional P-8A Poseidon maritime surveillance aircraft. LRIP-II is the follow-on to an initial LRIP-I contract awarded in January to provide six Poseidon aircraft. Overall, the Navy plans to purchase 117 Boeing 737-based P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace its P-3 fleet.
As part of the contract, Boeing will provide aircrew and maintenance training for the Navy beginning in 2012, in addition to logistics support, spares, support equipment and tools. The training system will include a full-motion, full-visual Operational Flight Trainer that simulates the flight crew stations, and a Weapons Tactics Trainer for the mission crew stations.