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Wednesday, January 27th, 2021

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GE’s turnaround gains traction as quarterly free cash flow surges

Boston-based industrial conglomerate General Electric (GE) has predicted free cash flow of US$2.5 billion to US$4.5 billion this year after generating cash flow of US$4.4 billion in the fourth quarter. These figures indicate that GE’s Chief Executive Larry Culp’s 2018 turnaround plans are gathering steam, having helped drive cash savings and rendering GE’s businesses more profitable.

GE’s power division reported a double-digit growth in equipment orders despite the company’s decision to exit the coal-fired power plants business. Culp has described GE’s turnaround as “a game of inches.” In a phone interview, he said the company still has a lot to do. He said the company’s 2021 outlook was “achievable” on the back of a “strong” performance in healthcare and “continued progress” in its power and renewable businesses. “Those three businesses, for the most part, have found a level of stability and relative predictability amid the pandemic,” he told Reuters news agency.

Equipment orders for renewable energy grew for the first time since the third quarter of 2019, with substantial onshore wind orders in North America and offshore wind orders from the Dogger bank wind farm in the U.K. GE’s shares have gained over 60% since late October with the hope that recovery in air travel would boost its aviation business, usually its most profitable and most cash-generative segment.  The company, however, expects aviation revenue to be flat to up this year with air traffic forecast to recover in the second half. Culp added that while the return of Boeing Co’s 737 MAX jets - which use GE’s engines - is a “positive” for the conglomerate, it will not change the trajectory of its aviation business in the near-term.

Air Charter Scotland’s Derek Thomson joins The Air Charter Association Board

Air Charter Scotland’s Commercial Director and Accountable Manager Derek Thomson has been appointed to the Board of The Air Charter Association (The ACA) supporting newly appointed CEO Glenn Hogben and fellow board directors. Thomson will draw on his 25 years’ experience in aviation to offer support and advice to operators and charter brokers as The ACA, now in its 72nd year, continues to widen its global membership reach.

He is also keen to encourage the next generation of young aviation professionals, a passion he shares with Air Charter Scotland’s Sales Manager Michelle McMullan, who became one of The ACA’s Next Generation ambassadors in October last year.


HondaJet Elite obtains Russian type certification

The HondaJet Elite has received Russian type certification from the Federal Air Transport Agency (FATA), demonstrating that the aircraft meets the safety standards set by the organization. The first HondaJet with Russian registration began its operation in the region immediately after receiving the certification.

As customer demand grows, Honda Aircraft Company is continuing to expand its list of type certifications. The HondaJet currently holds 13 type certifications around the world, including, the United States (FAA), Europe (EASA), Mexico (AFAC), Brazil (ANAC), Argentina (ANAC), Panama(AAC), India (DGCA), Japan (JCAB), Canada (TCCA), China (CAAC), Turkey (DGCA) and Pakistan (PCAA).

Alaska Air Group posts fourth quarter 2020 net loss of US$316 million

Alaska Air Group has posted a fourth quarter 2020 GAAP net loss of US$430 million, compared to net income of US$181 million in 2019. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported a fourth quarter adjusted net loss of US$316 million compared to adjusted net income of US$181 million in the fourth quarter of 2019.

The company reported a full-year 2020 GAAP net loss of US$1.3 billion, compared to net income of US$769 million in the prior year. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported an adjusted net loss of US$1.3 billion, compared to adjusted net income of US$798 million in 2019.

Alska Air Group accessed approximately US$5 billion in new liquidity in 2020, including US$1.2 billion raised in the capital markets and approximately US$600 million in bank financing. The company reached an agreement with the U.S. Treasury in January 2021 to receive an extension of payroll support totaling US$533 million, US$266 million of which was received on Jan. 15, 2021 and extended the period available to draw funds under the CARES Act loan program from March 26, 2021 to May 28, 2021.

Alska Air Group announced plans to expand the mainline fleet and restructure the existing aircraft purchase agreement with Boeing. In total, Air Group will take delivery of 68 737-9 MAX aircraft between 2021 and 2024, inclusive of 32 previous purchase commitments and 13 aircraft to be leased from Air Lease Corporation.

The company permanently removed an additional 20 Airbus A320 aircraft from the fleet in the fourth quarter, resulting in 40 Airbus aircraft removed in 2020. A total of 31 Airbus aircraft remain in the operating fleet as of the end of the year. Alaska Air Group held US$3.4 billion in cash and marketable securities as of Jan. 22, 2021, and total liquidity of US$5.2 billion.


Magali Beauregard joins CargoAi as Chief Customer Officer

CargoAi has named Magali Beauregard as Chief Customer Officer effective February 1, 2021. The recruitment of the former Head of Commercial Asia Pacific at Lufthansa Cargo and Senior Account Manager at Booking.com is the perfect embodiment of CargoAi’s strategy: combining expertise in air cargo and digital technology to deliver custom-tailored solutions to its users.

“To head the customer department at CargoAi, we needed someone who had a highly pragmatic vision of customer needs. With the combination of her experience of SAAS platforms and her total understanding of air cargo, Magali fits the bill perfectly. A real achiever who has genuine passion for the industry, we couldn’t hope for anyone better placed to design the best-in-class customer-based product and customer journey we need,” explains Matthieu Petot, CEO of CargoAi.

With all top management roles now filled, CargoAi is pursuing its goal of digitalizing air freight through human expertise.

Jet Aviation receives IS-BAH Stage II registration for FBO in San Juan

Jet Aviation has achieved IS-BAH Stage II Registration for its FBO in San Juan, Puerto Rico. The San Juan FBO is a full-service handling operation at one of the most convenient U.S. points of entry for international flights. Jet Aviation acquired full ownership of the FBO at Luis Muñoz Marin International Airport in February 2019.

As the first FBO in Puerto Rico to qualify for IS-BAH Stage I registration in September 2018, Jet Aviation San Juan continues to demonstrate its industry leadership and commitment to the highest safety standards.

“Between Hurricanes, the ownership change, and all the new systems that came with it, our team here in San Juan has had much to contend with the past few years and yet continues to raise the bar with new offerings and premium service delivery,” said Hector Vasquez, senior manager FBO. “The rigorous IS-BAH Stage II audit was a first for most of the team and I couldn’t be prouder of them.”

After Hurricane Maria destroyed the San Juan hangar in 2017, Jet Aviation built a new 20,000 ft² hangar that officially opened in June 2020. The hangar can accommodate up to three small- to medium-sized aircraft and three large aircraft, up to the size of the Gulfstream G650 or the Global Express.

The International Standard for Business Aircraft Handling (IS-BAH) establishes criteria for best handling systems, processes and practices to ensure FBOs meet rigorous safety and security standards. With this recent approval, Jet Aviation has a total of 29 IS-BAH registered FBOs around the world, including 10 in the U.S.A., 12 in EMEA, and 7 in APAC.


Volare Aviation completes first Hawker Blended Winglet retrofit

Oxford, U.K.-based Volare Aviation has completed its first installation of the Blended Winglets retrofit on a Hawker 800XPi airplane, and is appointed an authorized installation partner for Hawker 800 series Blended Winglet retrofits in Europe.

API’s Performance Enhancing Blended Winglets for the Hawker 800 series airplanes reduce drag by over seven percent at long range cruise.  This drag reduction increases range by 180 nautical miles or more, allows the airplane to cruise 15-18 knots faster; enables faster time-to-climb, can reduce or eliminate the need for step-climbs for many missions, and improves second segment climb.  In addition, with its unique Scimitar Tip design, the API Blended Winglet retrofit gives the Hawker a new look.

C&L Aerospace purchases multi-million-dollar ATR inventory

C&L Aerospace has purchased a multi-million-dollar ATR expendable package. As part of the transaction, C&L has acquired thousands of new, OEM certified “S” part numbers, to be added to its existing ATR inventory. All parts from the program are now stocked in C&L’s U.K., Australian, and Bangor, ME, U.S.A. warehouses.

Parts from this purchase will complement C&L’s existing rotable inventory and round out a full service offering to ATR operators. The inventory is currently going through inspection and cataloging process which includes photographing and barcoding the parts and corresponding documentation making both available online to customers.

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