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LATEST NEWS

Friday, December 18th, 2020

German ambassador to the U.S. seeks end to long-lasting aircraft subsidy dispute

For the best part of sixteen years a dispute has existed between the U.S. and Europe over what have been deemed unfair government subsidies. While the U.S. objected to those granted to Airbus, The U.K, France, Spain, and Germany objected to those subsidies which had been given to Boeing by the U.S government.

Emily Haber, Germany’s ambassador to the United States is looking to draw the dispute to a close so that the two sides can form a more productive relationship to counteract the destructive forces of the COVID-19 pandemic on the aircraft industry on both sides of the Atlantic. In addition, Haber also expressed concerns over China’s development of its own commercial aircraft which have the potential to challenge Boeing and Airbus’ global duopoly. “It is one of the issues that needs to be solved very early on,”

Haber said, underscoring the need to “get the priorities right, especially at a time when aircraft industries are really suffering from the consequences of the pandemic.” Trade and climate change were two additional areas where Haber felt that a mutually cooperative relationship was essential, while underscoring the message the two economies were sending the Russians, and particularly the Chinese, who she saw as a divisive country, citing recent events between China and Australia. “They’re trying to pit us against each other,” she said. “But if we want to shape an alliance in order to confront this behavior ... the obvious answer is we have to create a common ground which is as large as possible.”

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Aerion Supersonic selects F/LIST as cabin interior supplier for the AS2

Supersonic aircraft company Aerion has selected F/LIST, the internationally renowned manufacturer of high-end interiors for business and private jets, yachts, and luxury residences, to deliver its exclusive products to the AS2 supersonic business jet.

F/LIST will collaborate with Aerion to develop an innovative, ultra-luxury cabin experience in the new AS2 supersonic private jet. F/LIST is working with Aerion to design a modern and luxurious cabin interior, including cabinets, liners, hard floorings and baggage liners. F/LIST currently supports Aerion with its unique expertise in interior engineering, certification support, materials & finishes during the development phase to provide the finest interior to the AS2.

F/LIST has collaborated with Aerion Supersonic on the AS2 program since 2014. The core values and synergies of both companies have paved the way for a successful long-term relationship. Amongst other initiatives, Aerion Supersonic’s commitment to pioneering a future of environmentally sustainable supersonic flight and carbon neutral operations strongly resonates with F/LIST’s vision. F/LIST stands also for climate protection and emissions reductions by using sustainable energy in their production.

Skyworld Aviation arranges sale of 11 Q400 aircraft

On behalf of HEH Hamburger EmissionsHaus, Skyworld Aviation has arranged a sale agreement on 11 Bombardier Q400 aircraft to a North American entity. The aircraft are currently located in SAMCO’s storage facilities and will be delivered to their new owner throughout 2021, starting January. The aircraft are technically managed by Fintech Aviation Services who will oversee delivery. 

Skyworld Aviation is an aircraft marketing organization with offices in the U.K. and Canada, specializing in the regional sector.

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IBA forecasts long-term engine value resilience

The long-term value of commercial aircraft engines is set to withstand the worst effects of COVID-19, according to new data from IBA.

Engine values and lease rates remain soft across all the wide-body, narrow-body, regional jet markets in the short term. Mature wide-body engines have experienced the greatest reductions and young narrow-body engines the least. 

However, engine values are showing long-term stability. Taking a 1999 build Airbus A320ceo as an example, the value of its CFM56 engines has dropped by less than 10%, due to the combined benefits of OEM price inflation and regular reinvestment.

The advent of COVID-19 vaccines is driving some positivity into the engine marketplace, but activity remains depressed as traders are reluctant to sell at the 30-50% discounts currently being sought. 

Lease rate factors on sale and leaseback activity have improved with activity focusing on next-generation engines, whilst shop visits have now stabilized at just 50% of pre-COVID levels.

The result of this new normal in the engine marketplace is lessors seeing an increased volume of engines being returned off lease and stored, MROs cutting capacity to meet new demand levels, and OEMs focusing activity on correcting service entry issues with new engines.

While the long-term value proposition for the more liquid engine types is sound, the immediate issue for most engine owners, lessors and airlines is cash management and considerable efforts are being made to optimize the blend of cost versus time on wing. 

IBA forecasts that the earliest that MRO demand will start to surpass pre-COVID levels is early 2024, with shop visit demand not set to recover until 2022 at the earliest.

Phil Seymour, President of IBA, says: “The engine marketplace has faced significant, immediate challenges since the onset of the COVID-19 pandemic, but the underlying, long-term picture is a more stable one and the advent of vaccines is likely to accelerate that trend.”

RoyalJet employs HAECO cabin solution's innovative in-seat container and bags to carry cargo

Abu Dhabi-based RoyalJet has incorporated HAECO Cabin Solutions’ novel in-seat package stowage systems, allowing cargo to be carried in the passenger cabin of its Boeing 737-700 aircraft.

“In our drive to enhance the capabilities of our fleet during these challenging times we have been searching for ways to allow our customers to transport more precious cargo on their trips. Of the solutions we considered, HAECO Cabin Solutions’ all-in-one cargo solution and cargo bags provided the most payload and cargo volume and was easily configurable to adapt to the available space, maximizing cargo capacity while minimizing cabin modification,” said Rob DiCastri, Chief Executive Officer of RoyalJet.

HAECO Cabin Solutions provided the Supplemental Type Certificate (STC) for the equipment and installation, and the United Arab Emirates’ General Civil Aviation Authority (GCAA) granted operational approval to operate the aircraft with both cargo and passengers, greatly enhancing RoyalJet’s operational flexibility.

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U.K. aerospace boost as Faradair® Aerospace signs new partner consortium

In an exciting week for the aviation industry with Jeff Bezos and Bill Gates showing their support for sustainable aviation, Faradair® Aerospace is delighted to reveal a powerful consortium of partners to bring back large-scale aircraft production to the U.K.

The British start-up, headed by aviation entrepreneur Neil Cloughley and based at the historic airfield at IWM Duxford, Cambridgeshire, announced that it has attracted a strong consortium of partners to help it deliver 300 of its new Bio Electric Hybrid Aircraft (BEHA) by 2030, in a global demonstration of regional air mobility and special missions.

Faradair® is pleased to welcome Honeywell, magniX, Cambridge Consultants and Nova Systems, all leaders in the emerging sustainable aviation sector, to its existing partnership team.

Faradair® will work with Honeywell on the BEHA turbogenerator, comprised of Honeywell’s gas turbine and generator technologies, with the ability to run on sustainable aviation fuel, to support the hybrid-electric aircraft design in addition to other technologies, including avionics and flight control systems.

magniX is regarded as the leading provider of electric motors to the aviation industry and the BEHA will use two magni500 e-motors and associated magniDrive control system technology for flight propulsion.

Cambridge Consultants, widely recognized as a global leader in R&D engineering, brings its vital expertise in hybrid propulsion architecture to the development of the BEHA’s hybrid propulsion system, integrating the turbine and flight e-motors.

Nova Systems, a global leader in aircraft design, test, evaluation and certification, will assist Faradair® through the early prototype development stages, reassuring certification authorities that the aircraft is being developed and built to the standards of existing and future regulations for sustainable aviation technologies.

In line with UK Government ambitions for sustainable air transport, the British designed and built BEHA will emerge in hybrid electric/turbine configuration, but engineered for evolution into a fully electric ‘net zero’ commercial aircraft when power generation technology delivers the power density levels required for an 18-seat utility aircraft. The BEHA is specifically designed for low cost, quiet, environmentally friendly flight, qualities that enable it to deliver Air Mobility as a Service (AMaaS) to all.

The ambition is to deliver an initial portfolio of 300 Faradair®-owned BEHAs between 2026-2030, in the largest proof of concept air mobility program ever created. Of these, 150 aircraft will be built in firefighting configuration, 75 as quick change (QC, passenger to cargo) aircraft, deployed at general aviation airfields globally, and 50 as pure freighters.  The final 25 aircraft will be demonstrated in non-civilian government roles, including logistics, border and fisheries patrol, and drug interdiction.

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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

CAS welcomes vew Vice President of Sales and Contracts

Certified Aviation Services (CAS) has released, that Nigel Patterson has agreed to join its CAS Team as Vice President of Sales and Contracts. As newly appointed VP of Sales and Contracts, Patterson will manage and direct all sales and contract operations and functions to achieve volume and profit goals. Responsibilities will include managing key customer relationships and participate in closing strategic opportunities.

Patterson brings with him over 32 years of result-oriented aircraft OEM experience where he recently occupied the position of Head of Services Sales at Airbus North America.

Finnair closes sale and leaseback agreement for one of its A350 aircraft

As a part of Finnair’s rebuild program, the company has finalized a sale and leaseback arrangement for one of its A350 aircraft with Incline B Aviation Limited Partnership as a lessor guarantor, and BBAM Aviation Services Limited as a lease servicer. In the arrangement, Finnair sold the Airbus A350 aircraft, which was delivered in April 2019, and leased it back for its own operation. The initial operating lease period is 12 years, not including extension options.

The arrangement has no major impact on Finnair’s operating result for the fourth quarter of 2020. However, the immediate positive cash effect for Finnair is in excess of €100 million.

Finnair has ordered a total of 19 new A350-900 XWB aircraft from Airbus, of which 16 have been delivered as of September 1, 2020.
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Tamar Jorssen
Vice President Sales & Business Development
Email: tamar.jorssen@avitrader.com
Phone: +1 (788) 213 8543
Tamar