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Wednesday, November 18th, 2020

easyJet posts first-ever annual loss at £1.27 billion

After more than eight months of heavily reduced demand for flights as a consequence of the COVID-19 pandemic, Europe’s second-largest low-cost carrier, easyJet, has posted an annual loss of £1.27 billion as at the end of September.

However, the recent positive announcements concerning vaccines aimed at combatting the coronavirus have resulted in a 50% increase in demand for flights according to the carrier’s chief executive, Johan Lundgren. EasyJet’s shares rose 45% last week, helped by the vaccine news. Shares in the company were up 1.6% to £7.88 at 08:02 GMT on November 17, in a release which Goodbody analysts said contained “no surprises … which can be taken well”.

The pandemic has hammered easyJet’s finances, forcing it to take on more debt, turn to shareholders for additional cash and sell multiple aircraft, but Lundgren was keen to reassure investors. “No, we think we’re in a good position … at this moment in time,” Lundgren said when asked if easyJet would need to raise more money. “But we also said that we’re going to continue to review all the options that are out there to make sure that we can cope with the circumstances and you know there’s still a lot of uncertainty about when the recovery is going to take place.”

After talks with the Bank of England and the U.K. government’s finance ministry, easyJet will extend its borrowing under a COVID Corporate Finance Facility, staggering repayments and relieving pressure on its balance sheet. Quarterly cash burn, a gauge watched by investors eager to see costs reduced, improved to £651 million from £774 million pounds in the previous period. (£1.00 = US$1.33 at time of publication.)

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Boeing's 2020 World Air Cargo forecast anticipates more than 60% fleet growth over 20 years

Boeing has released its biennial World Air Cargo Forecast (WACF), reflecting COVID-19 impacts and opportunities as well as substantial long-term demand for freighters over the next two decades.

Enabled by a rebound in global trade and long-term growth, the WACF forecasts demand for 2,430 freighters over the next 20 years, including 930 new production freighters and 1,500 freighters converted from passenger airplanes.

According to the new forecast, world air cargo traffic will grow at 4% per year over the next 20 years. This growth is influenced by trade and growing express shipments to support expanding e-commerce operations. With these developments and the proven need for dedicated freighter capacity to support the world’s transportation system, the global air cargo fleet is expected to grow by more than 60% through 2039.

In addition to projecting long-term demand for freighters, the WACF provides insights into air cargo performance during the pandemic, including the following:

E-commerce, which was growing at double-digit rates prior to the pandemic, has accelerated its impact on the air cargo market as more businesses shifted to online selling platforms. Year to date through September, express carriers increased traffic by 14%.

Passenger belly cargo, which in 2019 accounted for about half of the world air cargo capacity, was significantly reduced when airlines parked thousands of planes. Freighter operators responded by operating above normal utilization levels, and traffic for all-cargo carriers grew 6%.

So far in 2020, approximately 200 airlines used more than 2,000 passenger widebody aircraft for cargo-only operations to generate cash flow and support global supply chains. These passenger freighters have taken up some of the capacity shortfall and, in some cases, generated quarterly profits for carriers despite minimal passenger operations.

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EngineStands24 introduces new top-notch engine stand tracking

EngineStands24, a subsidiary of global provider of Total Technical Care for aircraft operators and lessors, Magnetic MRO, has upgraded the engine stands tracking system, adding new tracking devices to the current stand pool.

As the company promised the total care of engine stands, the new tracking devices add convenience to customers as they allow to track the engine stand real-time, including when it is stored and transported. In addition to tracking the stand's current location, the new devices allow checking the temperature of the place where it is stored and have other additional features.

The dedicated tracking platform is planned to be added to the website, where customers will be able to track the engine during the entire loan period.

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GA Telesis signs product distribution agreement with JMS

GA Telesis (GAT) has signed an agreement with German commercial aircraft maintenance support firm JMS AG (JMS) to become a worldwide distributor of its extensive Ground Support Equipment (GSE) product line. This partnership builds on the continued expansion of offerings of GA Telesis’ Tarmac Solutions Group to supply GSE and specialized tooling to airlines, MROs, and airports around the world.

The three-year agreement with JMS provides GA Telesis access to critical GSE, including towbars, tripod jacks, axle jacks, and unique aircraft/engine handling and servicing equipment.

Qantas chooses Spatial to deliver new Cabin Emergency Evacuation Trainer

Qantas has chosen Spatial, a provider of cabin crew training simulators, to deliver a new wide-body Cabin Emergency Evacuation Trainer (CEET).

Working in collaboration with the Qantas team, the CEET will be a highly sophisticated device offering training on both A330 and B787 aircraft operations in a combined environment to meet Qantas training requirements.

As well as offering training on the doors for both aircraft types in both normal and emergency modes, the CEET will deliver cockpit entry procedures training and feature fire, smoke and decompression simulations.

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Hungary signs contract for two Multi-Mission KC-390 Millennium airlifters

The Hungarian Government and Embraer have signed a contract for the acquisition of two new generation multi-mission transport aircraft Embraer C-390 Millennium, in its air-to-air refueling (AAR) configuration, designated KC-390.

Pilots and technicians training as well as other services and support are included in the contract as part of the process to strengthen the Hungarian Defence Forces capabilities specifically on the tactical airlift, AAR and medical evacuation roles as well as in other missions of public interest. Deliveries are scheduled to start in 2023.

The KC-390 for the Hungarian Defense Forces will be the first in the world with the Intensive Care Unit in its configuration, an essential feature to perform humanitarian missions. The aircraft fully meets the requirements of the Hungarian Defense Forces, being able to perform different types of military and civilian missions including humanitarian support, medical evacuation, search and rescue, cargo and troops transport, precision cargo drop, paratroopers operations and AAR.

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ST Engineering reorganizes for global growth and success

ST Engineering has announced organizational changes that will position the group for its next phase of growth, and propel it towards its aspiration to become a global technology, defence and engineering powerhouse. Effective January 1, 2021, ST Engineering will be reorganized as Commercial and Defense & Public Security clusters, replacing the sector-structure of Aerospace, Electronics, Land Systems and Marine.

The new organization structure is designed to enable better execution of the group’s global growth strategy of strengthening its core businesses, and pursuing growth in smart city and international defense businesses. It is also designed for customer-centricity, enabling the business clusters to build deeper and more strategic customer partnerships. This change provides greater effectiveness in resource allocation, and also helps accelerate the development of deeper domain expertise to further enhance the performance of its businesses.

The commercial cluster will fuel the group’s international growth through areas in Commercial Aerospace, Urban Solutions and Satellite Communications domains, to be known as Global Business Areas (or GBAs) to reflect the group’s desire to build global champions. The Commercial Aerospace GBA will continue to drive long-term growth of the aerospace businesses in Aerostructures and Systems, MRO and Aviation Asset Management. Similarly, Urban Solutions and Satellite Communications teams will drive the group’s smart city business growth. This cluster combines the group’s smart city technologies and capabilities, which now reside in the four sectors, into one integral unit.

The Defense & Public Security cluster will integrate capabilities to be organized as a single cluster comprising Defense Business Areas or DBAs, namely Digital Systems and Cyber, Land Systems, Marine and Defense Aerospace. The design of this cluster is aligned to the integrated approach for defense technology development and deployment as well as customer engagement. This cluster will focus on serving the evolving needs of its customers in defense and public security as well as critical infrastructure segments. It will also continue to pursue growth in international defense, and public safety and security businesses.

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East Midlands Aviation firm continues to expand team

East Midlands-based global engine and aircraft consultants, TGIS Aviation Management, continue to grow its aviation expertise with the addition of Paul Charles who joins TGIS as Head of Powerplant.

Having had 31 years working in the aviation industry, Charles' particular expertise lies in engine asset management, engine overhaul and on wing support services.

New starter, Charles commented, “I’m pleased to have joined the team at TGIS Aviation. We’ve previously collaborated on a number of occasions, so being a permanent member of the business feels like organic growth for all parties.”
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Tamar Jorssen
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Email: tamar.jorssen@avitrader.com
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Tamar