Friday, August 24, 2012
AviTrader Daily Aviation News Alert
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January 23, 2015 · 128 Views
India’s Spicejet airline is coming under increased scrutiny and financial pressure with the news that BOC aviation have demanded the return of three leased Boeing 737s. This comes in the same week that Mumbai International Airport Limited (MIAL) had put the troubled carrier on cash-and-carry mode since January 20th. This move followed after the airline allegedly failed to clear its earlier dues, sources said. In addition, these sources said that the net outstanding balance currently stood at approximately Rs 5 crore (US$800,000), while MIAL wants a further Rs15 crore (US$2.4m) in the form of bank deposit towards surety. MIAL had en-cashed SpiceJet’s Rs15 crore (US$2.4m) on December 19th, last year as a consequence of dues piling up. An MIAL official stated, “We are now cautious after the closing down of Kingfisher Airlines which owed several crore of rupees to us and therefore are taking no chances this time.”
Robert Martin, BOC Aviation’s MD and CEO, is quoted as saying that “SpiceJet is a very frustrating situation,” continuing, “Obviously when we lease planes we like people to pay us. And if they don’t pay us, then generally the way an operating lessor reacts is by moving its planes to somewhere else in the world.” It was reported this week in India’s Economic times that lessors wanted the return of 11 planes in total. BOC is among half a dozen firms currently exposed to the financial problems at Spicejet, with Canada’s export credit agency, which has financed 15 Bombardier Q400s, another concerned party, though they had not yet indicated a desire for these planes to be deregistered.
The Bank of China leasing arm has warned that India’s fast-growing airline industry may now find it more difficult to attract investment funds if India fails to uphold a pact designed to protect the owners of leased jets, one which is currently used across the world. The case of Spicejet is being monitored more closely than the demise of Kingfisher as unlike Kingfisher, Spicejet’s operations are covered by what is referred to as the Cape Town Convention of 2001. In an effort to assist new airlines in emerging markets a 10% reduction in leasing fees would be given, but with the proviso that owners could retrieve planes in the event of default on payment.
The current situation, according to Sanjiv Kapoor, SpiceJet’s Chief Operating Officer in a recent email, indicates that “In general with the imminent change of ownership and re-capitalisation, we expect all matters related to payables to be resolved soon in co-operation with our partners and suppliers, and are in regular contact with them.”
BOC Aviation’s Robert Martin, however, has greater concerns, indicating that ignoring the pact would be detrimental to other Indian carriers, saying “It means the industry will be less interested in leasing planes to India, relative to other jurisdictions”. Airlines have 60 days to return planes, but relevant officials have stated that SpiceJet still had enough time to meet the deadline.
December 2, 2014 · 184 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 · 145 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 · 99 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 · 70 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 · 70 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 · 66 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 · 61 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 · 58 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 · 35 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 · 48 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.
August 22, 2012 · 15 Views
Avianca has selected Barfield, a Sabena technics company, as its provider for the repair of specific components for its Airbus A330 fleet. This A330 program comes in addition to the existing 10-year repair agreement covering Avianca’s A320 fleet. Within this additional scope, Barfield will perform test, repair and overhaul of rotable components such as avionics, hydraulics, air conditioned and instruments for the Avianca fleet of eight A330 aircraft. During the next couple of years, the fleet shall reach ten aircraft. This collaboration is not the first one between the airline and Sabena technics’ American subsidiary. In 2010, Avianca and TACA Airlines selected Barfield as its maintenance partner for its A320 fleet. Barfield, in order to improve its proximity of service, soon opened a facility in Bogota, Colombia, to support Avianca and TACA Airlines.
August 22, 2012 · 6785 Views
SkyVision Xtreme announced the release of its SkyVision Portable, a fully transportable ADS-B transceiver system, with integrated Appliance, for use with iOS, Android, and Windows devices with Wi-Fi capability. The SkyVision Portable includes Xtreme Vision display software to provide the same Synthetic Traffic display (patent-pending) that pilots have learned to trust for intuitive situational awareness from SkyVision Xtreme. SkyVision Portable is squarely aimed at flight schools, renters, and those wishing to wait to permanently install ADS-B in their aircraft. SkyVision Portable includes a UAT transceiver and an Xtreme Vision Appliance, which uses Wi-Fi to transmit the Xtreme Vision display software to any Wi-Fi capable iOS, Android, or Windows display in the cockpit. Also included are a suction-cup mounted UAT antenna, a GPS antenna, and a power plug. The system is bundled in a briefcase-type enclosure that comes pre-wired and ready for flight.
August 22, 2012 · 32 Views
GE Capital Aviation Services (GECAS) reported it delivered two new Boeing 737-800 aircraft to Indonesia’s Lion Air as part of a purchase and leaseback transaction. The aircraft from the airline’s existing order book with Boeing were delivered in May and July and will be used to expand and modernize the airline’s fleet.
August 22, 2012 · 20 Views
Avcorp Industries signed a five-year contract extension with Boeing, to provide the wheel well for the Next-Generation 737 as well as assemblies and components that support the Next-Generation 737, 747-8, 767, and 777. The contract value is approximately CAD $80m over five years, commencing in 2013. These parts and assemblies will be manufactured and delivered from Avcorp’s Delta, B.C. Canada facility. “Boeing has been a valued Avcorp customer for 20 years,” said Mark Van Rooij. “However, this extension represents a tremendous opportunity for even greater collaboration between our companies and fits perfectly with our continuous improvement and strategic growth plans”.
August 22, 2012 · 19 Views
AgustaWestland, a Finmeccanica company, announced that a new AgustaWestland Service Centre has been opened by AVIASUR to provide maintenance and other support services for AgustaWestland commercial helicopter customers. The service centre is located at AVIASUR’s modern facility at Santiago’s Arturo Merino Benítez International Airport in Chile, where an official opening ceremony was held on 8th August. The opening of a new service centre in Chile continues AgustaWestland’s strategy to provide customers with greater levels of service close to their operating locations. The opening of AVIASUR’s Service Centre brings the number of AgustaWestland Service Centres worldwide to over eighty, with a programme underway to further expand this network around the world. AgustaWestland is continuing to increase its market share in South America and now has 17 of its helicopters operating in Chile comprising eight AW119 Koalas, seven AW109s, one Grand and one W-3A Sokol. The first GrandNew light twin helicopter is scheduled to be delivered to Chile later this year.
August 22, 2012 · 13 Views
Associated Air Center, StandardAero’s Large Scale VIP Transport Completions Center in Dallas, Texas, recently delivered its 23rd “green” Boeing Business Jet (BBJ) completion for an Eastern European-based energy company customer. The completed interior includes a large sitting area complete with bench seating, retractable tables and individual “captain’s chairs,” in addition to a custom-designed lavatory and bedroom. Other accoutrements include a fully-equipped cabin management system incorporating in flight-entertainment, WiFi communications and flat panel video monitors. Among Associated Air Center’s other recent achievements are its contract award for an Airbus A330-200 series, wide-body aircraft and the opening of its 4,000 ft² VIP custom interior Design Center, which includes a full scale interior of a narrow-body Boeing Business Jet/Airbus Corporate Jet (BBJ/ACJ) VIP cabin, complete with fully-functioning seating, interior lighting, cabin management systems and an array of fabrics, veneers and interior layout floor plans.
August 23, 2012 · 10 Views
FL Technics Ulyanovsk, a subsidiary of the international aviation service provider Avia Solutions Group, has officially launched the construction of the new aircraft maintenance, repair and overhaul centre at the Port Special Economic Zone (PSEZ) in Ulyanovsk, Russia. FL Technics Ulyanovsk is the first resident company at the PSEZ to begin the construction of a major infrastructural project in the Ulyanovsk-Vostochny airport. The FL Technics Ulyanovsk project is currently underway and the company has planned the construction of the two brand new aircraft maintenance hangars (8000 m² each) for servicing both narrow and wide body aircraft, including Airbus А320, Boeing 737 Classic, Boeing 737NG, Boeing 777, Boeing 787, Bombardier CRJ 200, Sukhoi Superjet 100, as well as Boeing 747 and Airbus A380. The new $22m facility will feature a designated 3000 m² aircraft parking platform and the first hangar is expected to open its door for the customers in the beginning of 2015. The company is planning to establish up to 500 new workplaces for technical specialists at the facility. The new FL Technics technical base in Ulyanovsk will provide various MRO services, including A to D checks, engine and landing gear replacement, avionics and airframe modifications, flight hours inspection, Structure Maintenance, Component Maintenance and Interior Design-related services.
August 23, 2012 · 12 Views
British Airways Engineering, a leading Maintenance, Repair & Overhaul (MRO) provider, announced that its avionics subsidiary has achieved an important milestone for the company, having released over one million units since it was established in 1994. This equates to an average annual release rate of almost 52,700 units. The avionics team has been responsible for servicing avionics equipment for a wide variety of aircraft over its 18 years of existence. This has included iconic aircraft of the past, such as Concorde, as well as the latest generation of aircraft in service today. In order to increase the efficiency and scale of its operations, British Airways Engineering’s avionics subsidiary has introduced lean manufacturing processes and a culture of continuous improvement, changes which have been a major factor in today’s milestone. These operational efficiencies have contributed to avionics arisings (units released) increasing from 38,000 in 1994 to 80,000 in 2011.
August 23, 2012 · 8 Views
Mxi Technologies, a leader in aviation maintenance software, released that James Fitzgerald has joined the company as Vice President Sales, Americas. In this new role, Mr. Fitzgerald is responsible for strengthening Mxi’s presence and increasing market share in the Americas. This appointment coincides with Mxi’s increased business-focus on the region and the execution of go-to-market strategies for the Maintenix software product.
August 23, 2012 · 12 Views
HEICO CORPORATION reported that net income increased 13% to a record $23.1m for the third quarter of fiscal 2012, up from $20.4m for the third quarter of fiscal 2011. For the first nine months of fiscal 2012, net income increased 13% to $61.3m, up from $54.3m for the first nine months of fiscal 2011. Operating income increased 19% to $42.4m in the third quarter of fiscal 2012, up from $35.7m in the third quarter of fiscal 2011. For the first nine months of fiscal 2012, operating income increased 17% to $117.6m up from $100.9m in the first nine months of fiscal 2011. The Company’s consolidated operating margin improved to 18.8% in the third quarter of fiscal 2012, up from 18.1% in the third quarter of fiscal 2011. For the first nine months of fiscal 2012, the Company’s consolidated operating margin was 18.0% compared to 18.2% for the first nine months of fiscal 2011. Net sales increased 15% to $225.9m the third quarter of fiscal 2012, up from $197.7m in the third quarter of fiscal 2011. For the first nine months of fiscal 2012, net sales increased 18% to $654.9m up from $555.9m for the first nine months of fiscal 2011.
August 23, 2012 · 12 Views
Cirrus Aircraft reported that Cirrus SR20s and SR22s have been selected by Cassidian Aviation Training Services (CATS) in a public tender for the French Air Force and Navy. A fleet of 13 Cirrus SR20s will be dedicated for training pilots at the French air force base of Salon de Provence. An additional fleet of seven Cirrus SR22s will be dedicated to training flights of navigating officers arm systems (NOSA) and liaison flights, in particular to accompany the French Air Force’s aerobatic team. Through the agreement with CATS, another fleet of three Cirrus SR20s will be dedicated to the students of the Ecole Navale at the naval air station of Lanveoc Poulmic. CATS will be in charge of maintenance and airworthiness of all fleets. The transaction was handled by Cirrus France. Each aircraft delivered to the French Air Force will be equipped with the Cirrus Airframe Parachute System (CAPS), airbag seatbelts, Cirrus Perspective by Garmin avionics and all the active and passive safety systems and features that are standard on all Cirrus aircraft. Specific options such as UHF and G-Meter will also be equipped in the entire fleet.
August 23, 2012 · 14 Views
AWAS appointed Richard Sinclair as Vice President of Sales for the Asia Pacific region. Mr. Sinclair will report to Jon O’Connell Managing Director Asia Pacific Sales, and will be based in AWAS’ Singapore office. Richard joins AWAS from Capital Lease Aviation, a commercial aircraft leasing company where he was most recently its Chief Executive Officer responsible for overall strategic direction, as well as managing aircraft transactions from inception though customer delivery. Prior to this position, Mr. Sinclair was Finance Director of Aviation Plc, where in addition to having responsibility for the finance function, he played an active role in securing aircraft purchases and in negotiating lease transactions.
August 23, 2012 · 15 Views
GE Aviation has named Duncan Aviation as an authorized service center for GE’s CF34-3 engines that power the Bombardier Challenger series. Under this agreement, Duncan Aviation can perform line maintenance and engine maintenance, including front-end and hot-end entry, as well as provide OnPoint solution agreement and warranty support and facilitate access to both GE parts and technical support. “Duncan Aviation has more than 50 years of experience in the maintenance, repair and overhaul of business aircraft, and we are pleased to welcome the company to GE’s CF34-3 network of authorized service centers,” said Brad Mottier, vice president and general manager of GE Aviation’s Business & General Aviation organization. “In the last few years, GE Aviation has expanded its network of authorized service centers to ensure we can meet the needs of our growing customer base.”