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LATEST NEWS

Monday, August 3rd, 2020

ARJ21 aircraft completes special flight test at highest civil airport

ARJ21 AC103 has completed a maximum take-off/landing height expansion flight test at Daocheng Yading Airport (4411 meters above sea level), the highest civil airport and returned to Shanghai on July 30th, 2020. After half a month of flight test, the take-off and landing capabilities of the ARJ21 aircraft in the environment of a high plateau airport were fully verified, which marks that the operating range of ARJ21 aircraft can cover all the high plateau airports, laying a solid foundation for the opening of plateau routes in the future.

Plateau airports refer to the airports with an elevation of greater than 1,500 meters, among which those with an elevation of 1,500-2,438 meters are general plateau airports, and those with an elevation of 2,438 meters and above are high plateau airports. Plateau airports have thin air, complex terrain and changeable weather, which place higher requirements on aircraft performance and operation supporting capability.

With the special flight test at Daocheng Yading Airport, the maximum take-off/landing height is further expanded, and the reliability and plateau performance of ARJ21 aircraft are verified.

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Total revenue declines 89% for Air Canada in Q2 – posts CA$1.555 billion loss

Air Canada has reported unrestricted liquidity of CA$9.120 billion at June 30, 2020, in line with Air Canada's expectations, compared to unrestricted liquidity of CA$7.380 billion at December 31, 2019. Total revenues fell from US$4.738 billion in the second quarter of 2019 to CA$527 million in the second quarter this year, a decline of CA$4.211 billion or 89 per cent. Cargo revenue increased 52 per cent to CA$269 million. The airline reported second quarter 2020 negative EBITDA (excluding special items) or (earnings before interest, taxes, depreciation and amortization) of CA$832 million compared to second quarter 2019 EBITDA of CA$916 million. Air Canada reported an operating loss of CA$1.555 billion in the second quarter of 2020 compared to operating income of CA$422 million in the second quarter of 2019.

"As with many other major airlines worldwide, Air Canada's second quarter results confirm the devastating and unprecedented effects of the COVID-19 pandemic and government-imposed travel and border restrictions and quarantine requirements. Canada's federal and inter-provincial restrictions have been among the most severe in the world, effectively shutting down most commercial aviation in our country, which, together with otherwise fragile demand, resulted in Air Canada carrying less than four per cent of the passengers carried during last year's second quarter. In the face of such an impossible operating environment, I am extremely proud of the outstanding efforts our team is making, doing everything possible to successfully navigate this crisis, leveraging our strong balance sheet and the many other assets we developed or acquired over the last decade," said Calin Rovinescu, President and Chief Executive Officer of Air Canada.

"Since mid-March, we have raised CA$5.5 billion in new equity, debt and aircraft financings in the capital markets, providing us with over CA$9 billion in liquidity, as of June 30, to help weather the COVID-19 crisis. In addition, we have taken decisive action to cut spending and preserve liquidity - including a major management and front-line workforce reduction, a CA$1.3 billion reduction of our fixed costs and capital investments, the permanent retirement of 79 aircraft (representing more than 30 per cent of our combined mainline and Air Canada Rouge fleet), the indefinite suspension of certain domestic routes and station closures, and a reduction in our network seat capacity of 92 per cent in the quarter. These were some of the painful but necessary steps we have taken to stabilize our airline and preserve cash in these uncertain times. We will now look to the future using this unprecedented challenge as an equally unprecedented opportunity to rebuild a smaller but even more nimble airline, with a simplified and younger fleet and a lower cost structure coming out of the crisis.

SPL_04 (2020-01-17)

Boeing receives US$265 million Chinook Helicopter order

Boeing has signed a US$265 million contract for nine more MH-47G Block II Chinook helicopters that employees in its Philadelphia plant will assemble for the U.S. Army Special Operations Aviation Command (USASOAC).

Boeing is now on contract for 24 of the next-generation Chinooks. The MH-47G Block II Chinook features an improved structure and weight reduction initiatives like new lighter weight fuel pods that increase performance, efficiency, and commonality across the fleet. The new Chinooks will give the Army significantly more capability for extremely challenging missions.

GECAS delivers second of four A320neos to Colorful Guizhou Airlines

GECAS has delivered an A320neo aircraft to Colorful Guizhou Airlines in Tianjin, China. This is the second LEAP1A- powered A320neo aircraft to be delivered to the airline from the lessors’ order book.

In June 2019, GECAS and Colorful Guizhou Airlines announced the agreement to lease four A320neo with deliveries beginning in late 2019 and continuing into 2020. The first A320neo was delivered in October 2019. This second delivery means that Colorful Guizhou Airlines now operates a fleet of eleven aircraft, including GECAS’ two A320neos and nine E190s.

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MTU Aero Engines reports decline in revenue and earnings

In the first six months of 2020, MTU Aero Engines AG generated revenue of €2,048.8 million compared to €2,243.0 million in the first half of 2019. Operating profit was €224.2 million, compared to €365.2 million in the prior-year period. The EBIT margin was 10.9% in the first six months of 2020 (1-6/2019: 16.3%). Net income declined from €261.0 million to €161.3 million.

“The figures reflect the first effects of the coronavirus pandemic,” said Reiner Winkler, CEO of MTU Aero Engines AG. “A better estimate of the quantitative impact of the coronavirus crisis is now also possible. On Friday, we therefore issued new guidance for 2020.” MTU now expects to generate revenue of around €4 to €4.4 billion in 2020. In percentage terms, the company anticipates an organic decline in the mid to high twenties in the commercial series production business and in the high twenties in the spare parts business. In the commercial maintenance business, an organic revenue reduction in the low to mid single-digit percentage range is expected. Revenue in the military engine business should grow slightly. MTU is forecasting an adjusted EBIT margin of between 9% and 10% for 2020. Adjusted net income should develop in line with EBIT. Furthermore, MTU has set itself the goal of closing the year with a positive free cash flow.

Revenue from the commercial maintenance business was stable at €1,272.3 million in the first six months (2019: €1,287.3 million). The main revenue driver was the V2500 for the classic A320 family, followed by the PW1000G-JM for the Airbus A320neo, where MTU registered an increase in shop visits in connection with the retrofit program.

In the commercial engine business, revenue fell from €773.0 million to €630.6 million. The main revenue drivers were the V2500, the PW1100G-JM and the GEnx, which is used in the Boeing 787 and 747-8 models.

In the military engine business, the three-week suspension of operations in April was the main reason for the drop in revenue to €183.2 million (2019: €216.0 million). The main source of revenue was the EJ200 Eurofighter engine.

The order backlog at the end of the first six months remained high at €18.4 billion (December 31, 2019: €19.8 billion). The majority of these orders relate to the V2500 and the Geared Turbofan™ engines of the PW1000G family, in particular the PW1100G-JM for the A320neo.

SFR_02

Astronics reports second-quarter net loss of US$23.6 million

Astronics Corporation has reported financial results for the three and six-months ended June 27, 2020. Financial results reflect the divestiture of the Test Systems’ semiconductor business on February 13, 2019, and the acquisitions of Freedom Communications Technologies (Freedom), acquired in July 2019, and the primary operating subsidiaries of Diagnosys Test Systems Limited (Diagnosys), acquired in October 2019.

Second-quarter revenue was US$123.7 million with a net loss of US$23.6 million. Contributing to the loss was a US$12.6 million write-down of goodwill, which resulted from a reduced outlook in the Aerospace segment, specifically within the PECO reporting unit, and US$4.9 million in restructuring-related severance charges. Adjusted EBITDA in the second quarter was US$9.2 million, or 7.4% of sales. Cash flow from operations was a positive US$18.3 million.

GAT_41

Jin Air to streamline operations with Collins Aerospace’s full suite of ARINC aviation resource management systems

South Korea-based Jin Air has selected Collins Aerospace Systems’ full suite of ARINC aviation resource management systems and ARINC Integrator — a software tool that integrates data across new and existing airline IT and operational environments to streamline operations. The combination brings together 50 systems on a single-optimized platform to maximize the flow and use of data to optimize airport operations.

The aviation resource management system is a turnkey, cloud-based platform comprised of modules that help airlines manage aircraft, fuel and cabin crew expenses and enable around-the-clock global operations. The ARINC Integrator simplifies the complexities involved in managing various data sources by connecting applications not designed to work together into a fully integrated solution.

The ARINC aviation resource management system is a collaboration with Laminaar Aviation Infotech, which designs and produces innovative solutions for the global aviation and airline markets.
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Email: tamar.jorssen@avitrader.com
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Tamar