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Wednesday, November 11th, 2020

Boeing suffers further MAX cancellations while EU imposes 15% tariff

Boeing has suffered further cancellations of its currently grounded 737 MAX jet. With October deliveries down to 13 compared to 20 in October a year ago, China Development Bank Financial Leasing Co has canceled orders for four of the jets, three have been canceled by Oman Air, one from Czech carrier Smartwings  and four from an undisclosed buyer.

While the Federal Aviation Administration (FAA) is due to certify the 737 MAX for airworthiness so the stricken jet can once again return to the skies, knock-on effects of the COVID-19 pandemic have crippled demand for not just Boeing jets, but also those of its rival, Airbus. However, in October Airbus managed to sell 11 jets and booked 72 jet deliveries, reducing the financial overhang of unwanted aircraft.

The EU has announced that it will be imposing a 15% tariff on all US aircraft as part of a US$4 billion total tariff level as part of a retaliatory measure against tariffs imposed by the U.S. on European goods, and the 15% tariff levied on European-manufactured aircraft imported into the U.S. back in February this year.

SPL_04 (2020-01-17)

MAC Aero Interiors finishes Embraer Legacy 600 interior refurbishing program

MAC Aero Interiors, a subsidiary of global provider of Total Technical Care for aircraft operators and lessors, Magnetic MRO, has successfully completed a full VIP aircraft interior refurbishment project for a private charter flight management company.

The Embraer Legacy 600 aircraft has been delivered to Magnetic MRO hangars in Tallinn, Estonia, in September. The project scope followed „from concept to completion path" and included the refurbishment of the seats, divan covers and cushions, including armrests, shroud and fairing covers in a design tailored specifically for the customer.

In addition, it included lavatory refurbishments and carpet changes in the aircraft. New specially made perforated leather and fabric materials have been introduced and certified for this program to create a top-notch interior. Prior to the interior refurbishment, the painting design concept was prepared and the aircraft has been fully repainted in VIP finish at the company’s painting hangar.

StandardAero and Royal Netherlands Air Force sign long-term F135 engine lease and service agreements

StandardAero together with the Royal Netherlands Air Force (RNLAF) have announced the next milestone in a long-term Maintenance, Repair, Overhaul and Upgrade (MRO&U) partnership in The Netherlands, with the signing of F135 engine lease and services agreements.

The lease agreement with the Netherlands Central Government Real Estate Agency (RVB) provides all necessary facilities for F135 module MRO&U, including a dedicated engine test stand. The services agreement with the RNLAF provides all necessary equipment for F135 module MRO including highly skilled technician personnel from the RNLAF as well as other key functions such as engineering to perform MRO operations under the operational management of StandardAero.


xBridge takes command of airport evolution

The next step forward at Pittsburgh International Airport (PIT) will lead the airport industry into the future from inside the Airside Terminal.

PIT’s latest transformative venture is the xBridge, a 10,000-ft² innovation center custom-built to nurture the evolution of the industry and inspire creative solutions to aviation’s many challenges. 

“The xBridge is a physical manifestation of the innovative mentality we’ve been cultivating here at PIT for years,” said Katherine Karolick, Senior Vice President of Information Technology. “This will be a proving ground for new technology that will benefit the airport, our airline partners and the passengers we collectively serve.”

Commonly found in the tech sector, innovation centers bring various aspects of the product development process together into one space devoted to maximizing brainpower, resources and testing new ideas in real time. For example, the xBridge will contain maker space, an open design studio, and mockups of the various parts of an airport, such as concessions and the arrivals area.

“Innovation centers spark creativity. You can’t plan innovation,” Karolick said. “You need to create an environment and ecosystem to make it happen. This space has everything we need to tap into the collective brainpower of our industry and region, design innovative solutions, and accelerate the development of those solutions.”

PIT has been at the cutting edge of the industry with several recent initiatives, including Neighborhood 91, the first development in the world dedicated to industrializing the additive manufacturing industry; a first-of-its-kind microgrid that will power the entire airport via onsite natural gas wells and solar panels; and automated floor scrubbers augmented with UV lights to set the standard for maintaining clean and healthy terminals.

Like those milestones, the xBridge will be an integral part of the airport—in this case, at the end of Concourse B. The focal point of the center will be the xGate, a functional boarding gate that will operate as a working lab to test out concepts to improve air travel, Karolick explained.

“The xGate will be able to simulate a real, active gate and holding area,” she said. “And then we can actually test innovations on pilot flights coming in with our airline partners.”

Working in tandem with other companies on initiatives will be a key part of the xBridge’s success. As the airport itself has become a testing ground for new technology, including robotics and AI, this innovation center will focus those efforts into a space custom-built for ideation, experimentation and collaboration. Partner companies will be announced in the coming months.


IFS helps Marshall Aerospace & Defence Group scale its global defence manufacturing and service business

To ensure visibility and control over mission-critical business processes such as manufacturing and maintenance, repair, and overhaul (MRO), international defence manufacturer and service provider Marshall Aerospace and Defence Group turned to global enterprise applications company IFS for a comprehensive enterprise applications platform. Having embarked on a group-wide initiative to increase agility, competitiveness, and profitability, the company needed an enterprise applications suite that could scale with its manufacturing line of business and at the same time eliminate information silos and process inconsistencies across its divisions and sites.

Following a competitive bid process, Marshall selected IFS Applications™ 10 as it offered comprehensive and robust support for its complex project and composite manufacturing business, together with an MRO solution for heavy maintenance for its Hercules C-130 and other aerospace and defense customers.

By standardizing processes with IFS, Marshall is able to monitor and analyse all business data from a centralized location while benefiting from a modern platform for support activities. The IFS solution is used throughout the value chain, from first contact with customers to estimating, planning, project management, production, shipping, MRO and in-service support activities. The company also leverages the IFS platform to manage all suppliers and contractors and to address complex trade control requirements of the international defence industry.

Chorus Aviation reports third quarter 2020 financial results

Chorus Aviation has reported net income of CA$20.5 million for the third quarter of 2020, a decrease of CA$3.7 million due to the impact of COVID-19 on its results, offset by a change in unrealized foreign exchange of CA$24.9 million. Adjusted net income decreased CA$18.2 million to of CA$10.9 million and Adjusted EBITDA was CA$85.9 million, a decrease of CA$6.8 million over third quarter 2019 primarily due to the impact of COVID-19 on financial results.

At the end of the third quarter the company had liquidity of approximately CA$218.0 million, an increase of approximately CA$30.0 million over the second quarter 2020. Chorus Aviation collected approximately 50.0% of lease revenue billed in the third quarter, excluding repossessed aircraft, a 22-percentage point improvement over the second quarter of 2020.
The company delivered the third of five new Airbus A220-300 aircraft to air Baltic of Latvia.


AVIAA expands FBO network in Europe and United States, adding 30+ new locations

AVIAA, the global group purchasing organization for business aviation which provides procurement services for over 1,500 aircraft, has been active during the Coronavirus pandemic.

Thirty-three new executive aviation destinations have been added to its international FBO network, each delivering attractive benefits and savings for its pre-dominantly US and European operator members.

JetSet Services is one of the sizeable new suppliers, bringing in 25 airport handling locations all over Greece, including Athens, Mykonos, Heraklion and Santorini. Netherlands and Belgium-based ASL Group adds Maastricht Aachen and Antwerp International to the portfolio, while US FBO Stancraft Jet Center introduces its Coeur d’Alene handling facility in Idaho, a destination rapidly growing in popularity with US leisure flyers.  In Central Europe, Capital Handling brings in Riga International – a frequent stop destination for Europe, Russia and Asia and in the U.K., prestigious brand Harrods Aviation expands AVIAA’s FBO presence in London Luton and Stansted Airports.

AviaPartner Executive’s newest FBO in Palma de Mallorca has just been added to the AVIAA network, complementing its stations in Ibiza, Malaga and Gerona. The new Palma FBO offers domestic and international handling, aircraft fueling, catering, and cleaning, together with flight support, ground transfer, and bespoke concierge services.

Inflite The Jet Centre appoints Sebastien Albouy as General Manager

Inflite The Jet Centre (ITJC), part of the Inflite Group of companies, based at London Stansted Airport, has welcomed Sebastien Albouy as newly appointed General Manager of its MRO business, effective immediately.  He is taking over the role from Alan Barnes.

Albouy joins from ABS Jets in Prague where he was Chief Technical Officer. Prior to joining the Czech corporate jet operator, he held various consulting roles in the MRO industry. He was also General Manager of Embraer’s first Executive Jets Service Centre at Paris Le Bourget Airport. 


Embraer posts third quarter 2020 net loss of US$148.3 million

Embraer has delivered seven commercial jets and 21 executive jets (19 light / two large) in the third quarter of 2020 (3Q20), and the company’s firm order backlog at the end of the quarter was US$ 15.1 billion.

Excluding special items, adjusted EBIT and EBITDA were US$ (45.3) million and US$ (0.6) million, respectively, negatively impacted by weak Commercial Aviation results, yielding adjusted EBIT margin of -6.0% and adjusted EBITDA margin of -0.1%;

The 3Q20 results include total net positive special items of US$ 7.6 million: 1) restructuring expenses of US$ 54.0 million related to the voluntary and non-voluntary dismissal programs announced in September, 2) negative provisions for expected credit losses during the Covid-19 pandemic of US$ 13.0 million, 3) reversal of previous impairment in the Executive Jets business which positively impacted results by US$ 15.9 million, and 4) reversal of previous impairment in the Commercial Aviation business which positively impacted results by US$ 58.7 million;

Adjusted net loss (excluding special items and deferred income tax and social contribution) in 3Q20 was US$ (148.3) million, with Adjusted loss per ADS of US$ (0.81);

Embraer reported Free cash flow of US$ (566.5) million in 3Q20, still affected by working capital increases (particularly higher inventories) largely in Commercial Aviation.

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Tamar Jorssen
Vice President Sales & Business Development
Email: tamar.jorssen@avitrader.com
Phone: +1 (788) 213 8543