Daily2018-02-20
Follow-Us-Facebook
Follow Linkedin
Follow Twitter

LATEST NEWS

Friday, July 31st, 2020

Shares in GE slump 5% as Covid-19 pandemic ravages aviation industry – hits second-quarter earnings hard

Reporting cash outflow of US$2.1 billion from its industrial operations – well below an anticipated US$3.5 billion - US$4.5 billion, shares in the Boston, U.S.-based conglomerate fell 5%.

The aviation unit of the company, which is usually the most profitable, was hardest hit in terms of sales and orders. This unit, which makes engines for both Boeing and Airbus had already been severely impacted by the grounding of the Boeing 737 MAX, while Boeing’s announcement that it is further reducing production numbers of the troubled jet have compounded GE’s problems.

However, GE remains optimistic, noting that global flight numbers have slowly begun to increase. “We’ve started to see some early signs of improvement in June and July,” commented Chief Executive Lawrence Culp. “Nonetheless, we remain cautious going into the second half, given the uncertainty associated with the pandemic.”

Having taken over the role of CEO in September 2018, Culp has been charged with improving free cash flow and improving debt, the former expected to be better in the second half of the year, turning positive in 2021. In an attempt to cut costs, GE has already trimmed its workforce by 11% and plans to further reduce it by an estimated 25%. However, the first paring back of the workforce saw the company’s decremental margin drop a mere 3% from 62% to 59% in the first quarter of the year.

According to Reuters news agency, Analysts at Gordon Haskett Research Advisors, however, dubbed the progress as “weak”, warning the lagging impact of the pandemic could further hurt the performance of the services part of GE’s aviation business in the third quarter.

PRC_03

Pratt & Whitney and JetBlue sign long-term service agreement for 230 V2500® engines

JetBlue Airways and Pratt & Whitney have signed a 13-year EngineWise® fixed-price agreement for 230 V2500® engines that power the airline's A320ceo family-fleet.

JetBlue operates a fleet of 193 Airbus A320ceo family aircraft powered by the V2500 engine. The airline has also ordered 85 GTF-powered Airbus A320neo family aircraft, of which 10 have already been delivered. In addition, JetBlue has 70 GTF-powered Airbus A220 aircraft on order, with deliveries scheduled to begin later this year.

The V2500 engine is offered through IAE, a multinational aero engine consortium whose shareholders comprise Pratt & Whitney, Pratt & Whitney Aero Engines International GmbH, Japanese Aero Engines Corporation and MTU Aero Engines.

IBA appoints Phil Talbot as Chief Technology Officer

IBA has appointed Phil Talbot as Chief Technology Officer (CTO). 

Talbot has over 20 years’ experience in financial services and asset management technology with substantial expertise in business analytics, data research, AI, Big Data and cloud infrastructure. 

He will be responsible for managing the development of IBA’s leading aviation intelligence platform, IBA.iQ, as well as overseeing IBA’s IT and data systems.

Talbot joins IBA from Strategic Insight, a market intelligence company headquartered in New York, where he was Global IT and Security Director with responsibility for IT infrastructure, Business Community and Security for all business units within the group. 

ACR_03

IAG Cargo reports 33% increase in second-quarter 2020 revenues

IAG Cargo has reported its second-quarter 2020 results (Q2 2020), reporting commercial revenues of €369 million over the period from April 1 to June 30, 2020, an increase of 33.1% on the same period in 2019 at constant currency. 

Overall yields for the quarter were up 224.7% to the same time last year at constant currency, reflecting the extra costs of cargo-only flying and dedicated charters and a significantly changed flying program. Sold tons were down 51.2%.

“Q2 was, of course, dominated by the Covid pandemic. As passenger aircraft were grounded across the world, our teams adapted to ensure IAG Cargo continued to play a crucial role in supporting global trade and the movement of essential goods in these extraordinary time", commented Lynne Embleton, CEO IAG Cargo.  

“We rapidly developed one of the most comprehensive networks of scheduled cargo-only flights available; a network of over 340 scheduled flights per week built around our customers’ needs and tailored to the most important cargo flows. We have reconfigured aircraft to maximise cargo capacity, removing seats and using overhead lockers. These were important capacity solutions, albeit ones that brought additional operational complexity and cost.

“In addition to our scheduled cargo-only services, our newly established charter team has worked closely with commercial entities and governments to develop bespoke capacity solutions. During this second quarter we operated 615 charters, including 416 critical supply operations for the British, Irish and Spanish authorities. To date we have helped governments and private customers transport over 11,000 tonnes of PPE and medical supplies on these charters. We also saw additional PPE tonnage transported across our scheduled flights.

HEI_07
HEICO Repair Group is the world’s largest independent component MRO with capability for over 26,000 unique aircraft parts, servicing over 60,000 components annually. www.heico.com

New BAA Training center in Spain will include Boeing 737 MAX 8 Full Flight Simulator

BAA Training is going forward with its expansion in Spain. The global aviation training provider is establishing a 5300-m² training center near Barcelona–El Prat Josep Tarradellas Airport. The new facility will become a home to Boeing 737 NG, Airbus A320ceo/neo and a new type for the company – Boeing 737 MAX 8 full flight simulator.

The COVID-19 crisis has prompted dramatic re-evaluation and re-adjustment of plans, especially the ones related to expansion. Neverheless, BAA Training managed to open a brand new training centre in China this June and is glad to announce that its new training centre in Spain is set for launch in the first quarter of 2021.

AVATAR Partners debuts Avatar CONNECT AR solution

AVATAR Partners, an innovator in virtual, augmented and mixed reality (extended reality or XR, collectively) software solutions for heavy-duty industry and defense, has introduced its new Avatar CONNECT solution. Avatar CONNECT is designed to deliver a highly user-friendly, robust and low-cost way to connect remote team members via real-time collaboration anywhere in the world and on any AR-enabled device.

Avatar CONNECT is a powerful AR-enabled remote workforce solution that improves design, field coordination, installation, project management, quality control and assurance, productivity, safety training, and maintenance for a wide range of applications across multiple markets.

"We are very excited about the opportunity that Avatar CONNECT can provide, especially in a time when working remotely is on the increase and effective support is a must for those frontline workers," said AVATAR Partners CEO and Founder Marlo Brooke. "Our goal was to create a high-capability solution with the latest AR technology, in a form that takes minutes to set up and implement."

Using mobile devices, on-premise team members can share real-time views of equipment and environments with up to 15 remote concurrent users in multiple locations. A unique 3D annotation feature enables teams and senior experts to virtually view and draw on objects in three dimensions using a tablet or remote PC to provide guidance for accomplishing a job right the first time.

Avatar CONNECT offers, among other benefits, a multi-faceted "show me, tell me, guide me" approach to real-time AR that improves team performance while reducing delays and errors. In addition, with the increasing trend toward remote work, it can help eliminate travel costs and downtime.

GAT_40

Oriens Aviation places first enhanced Pilatus PC-12 NGX in the U.K.

Oriens Aviation, the exclusive sales and service centre for Pilatus Aircraft in the British Isles, delivered the newest ‘third-generation’ Pilatus PC-12 NGX to a private customer based in North West England on July 30, 2020. With its stylish executive six to eight-seat interior layout, the aircraft is ideal for business and leisure use.

Three years in the making, the NGX was unveiled during last year’s NBAA Show. It features a raft of enhancements over the PC-12 NG centered on an improved Pratt & Whitney PT6E-67XP engine, electronic propeller and, (a first in its size category) - a full authority digital engine control (FADEC) system. The cabin interior is modelled on the PC-24 Super Versatile Jet, in collaboration with BMW Designworks. With 10% more window area, the cabin is notably brighter and features more headroom, compared with the earlier PC-12 NG model.

The executive version features fully reclining seats and improved lumbar comfort, while the NGX can also be outfitted with the latest in WiFi connectivity. A low-speed propeller mode delivers considerably reduced cabin noise for enhanced cabin comfort. An Advanced Cockpit Environment houses Honeywell’s Epic 2.0 avionics and a touchscreen avionics controller.
AviTrader_Weekly_Headline_News_Cover_2020-07-27

click here to download the latest PDF edition

MRO-2020-07 cover

click here to download the latest PDF edition

click here to subscribe to our other free publications

AIRCRAFT & ENGINE MARKETPLACE

click here to view in PDF aircraft and engines available for sale and lease

Follow Twitter
Follow Linkedin
Follow-Us-Facebook
Interested in advertising with AviTrader?

Tamar Jorssen
Vice President Sales & Business Development
Email: tamar.jorssen@avitrader.com
North America Toll-Free: +1 (833) 258 8543
Outside North America: +1 (788) 213 8543
Tamar