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Monday, May 11th, 2020

Safran lays off 3,000 workers at Mexico plant

Safran, the world’s third-largest aerospace supplier has announced it is to cut it’s workforce in Mexico by 3,000 as the French company tries to deal with he fallout of the COVID-19 pandemic and its effect on the aerospace industry as a whole.

Safran has two plants at Queretaro, Mexico, an industrial city which has become a hub for global manufacturing supply chains with a proliferation of export-focused factories. Safran has over 13,000 employees working in Mexico and confirmed that the paring back of numbers was a necessity in order to protect approximately 10,000 other jobs in the country.

In emailed comments sent to Reuters news agency, a Safran spokesperson stated that: “We face a sharp drop in customer orders. Unfortunately, this situation is affecting our business and we must take steps to adapt to clients’ requests. One of these steps is a reduction of the workload,” the spokesperson added. Safran began notifying employees of its intentions as of the third week of April. “This tough step is proposed in order to preserve the longer-term existence of Safran in Mexico and to protect more than 10,000 jobs still active in the country,” the spokeswoman said.


Atlas Air and Southern Air provide interim pay increase for pilots

Atlas Air and Southern Air have reached an agreement with International Brotherhood of Teamsters (IBT) Locals 2750 and 1224 for an interim pay increase for their pilots. The ten percent pay increase is effective as of May 1.

“We wanted to provide this interim increase to our pilots who are working so hard during this difficult time. Reaching this agreement with our IBT Locals underscores our deep appreciation of the efforts of our pilots,” said John W. Dietrich, President and Chief Executive Officer, Atlas Air Worldwide. “While we continue to manage through this current pandemic situation, we also remain focused on completing the joint collective bargaining agreement we have been pursuing in connection with the merger between Atlas Air and Southern Air.”

The company and the IBT have been in merger negotiations for a joint contract for the more than 2,200 pilots that fly for Atlas Air and Southern Air.

Inflite The Jet Centre names Steve Hughes as GM, Excellence Aviation

Inflite The Jet Centre, part of the Inflite group of companies, has appointed Steve Hughes as General Manager and CAMO of Excellence Aviation Services Limited & Excellence Aviation Limited, effective Monday May 4.

Hughes brings a wealth of experience to his new role, providing leadership for the effective management of the Excellence Aviation businesses in delivering reliable, quality, services to its customers. He will work with the Excellence Aviation business, (the Bombardier MRO specialist acquired by Inflite in February 2019) to further develop the business.


Lufthansa Group airlines to take off again with 160 aircraft starting in June

Starting in June, Lufthansa, Eurowings and SWISS will be offering monthly flight schedules to more destinations in Germany and Europe than in the past few weeks. The repatriation schedules will end on May 31.

A total of 80 aircraft will be reactivated within the "June timetable". This means that a total of 106 destinations will be served in the coming month. Starting June 1st, 160 of the Group’s passenger aircraft will be in service.

The Lufthansa Group's airlines are responding to the growing interest of customers for air travel in light of the gradual easing of restrictions and limitations of the German federal states and the easing of entry regulations of other European countries.

Southwest Airlines and BOC Aviation sign purchase-and-leaseback agreement for ten Boeing 737 MAX 8 aircraft

BOC Aviation has signed a purchase-and-leaseback agreement with Southwest Airlines for ten Boeing 737 MAX 8 aircraft. All ten aircraft are powered by CFM LEAP-1B engines.

Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation, said: “We are delighted to be working with Southwest Airlines once again, building on a long-term relationship that dates back to 2008. This is the sixth major aircraft investment that we have announced this year, which reflects our company’s ability to provide innovative financing solutions for large-volume transactions and our commitment as a global partner to our airline customers.”


AAR Integrated Technologies awarded US$5.1 million firm-fixed-price contract from US Air Force

AAR, a provider of aviation services to commercial and government operators, announced that its AAR Integrated Technologies division has been awarded a firm-fixed-price (FFP) contract from the US Air Force Life Cycle Management Center (AFLCMC) Tinker AFB, Oklahoma, to provide contractor logistical support (CLS) for a fleet of 18 AN/MSN-7 Communication Central Systems.

The support requirements include program management, supply of all the AN/MSN-7 parts, support equipment components, all system materials and consumables as well as replenishment of spare parts. The effort also requires AAR to provide depot-level maintenance and system level down to Line Replaceable Unit (LRU) level repair as needed, procurement, and installation services on an as required basis. The firm-fixed-price contract with AAR Integrated Technologies is for five years (base year with four one year renewal options) for an estimated value of US$5.1 million. 

Second and third all-new Gulfstream G700™ test aircraft take flight

Gulfstream Aerospace has reported that the second and third all-new Gulfstream G700™ test aircraft have taken flight, further advancing toward certification and customer deliveries of the industry’s new flagship.

The second G700 flight-test aircraft had its first voyage on March 20, departing Savannah/Hilton Head International Airport (SAV) and flying for 2 hours and 58 minutes. The aircraft reached an altitude of 45,000 feet/13,716 meters and a speed of Mach 0.85.

Also departing from SAV, the third flight-test aircraft flew for the first time on May 8, soaring over Savannah for 3 hours and 2 minutes. It also reached an altitude of 45,000 ft/13,716 m and a speed of Mach 0.85.

The G700 is powered by Rolls-Royce Pearl 700 engines and can fly at its high-speed cruise of Mach 0.90 for 6,400 nautical miles/11,853 kilometrs or at its long-range cruise of Mach 0.85 for 7,500 nm/13,890 km.


Fly Leasing reports first- quarter 2020 financial results

Fly Leasing has reported its financial results for the first quarter of 2020. FLY is reporting net income of US$38.1 million for the first quarter of 2020. This compares to net income of US$45.0 million for the same period in 2019. The first quarter 2020 results include a US$9.4 million unrealized fair value loss related to investments in ABS equity certificates.

Adjusted Net Income was US$43.6 million for the first quarter of 2020, compared to US$47.2 million for the same period in the previous year. On a per share basis, Adjusted Net Income was US$1.42 in the first quarter of 2020, compared to US$1.44 for the first quarter of 2019.

At March 31, 2020, FLY’s total assets were US$3.6 billion, including investment in flight equipment totaling $3.0 billion. Total cash at March 31, 2020 was US$391.7 million, of which US$361.2 million was unrestricted. The book value per share at March 31, 2020 was US$29.21, a 28% increase since March 31, 2019. At March 31, 2020, FLY's net debt to equity ratio was 2.1x, reduced from 3.4x as of March 31, 2019.

At March 31, 2020, FLY had 84 aircraft and seven engines in its portfolio. FLY's aircraft and engines are on lease to 40 airlines in 24 countries.

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Tamar Jorssen
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Email: tamar.jorssen@avitrader.com
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