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Friday, March 12th, 2021

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Rolls-Royce confident of future despite posting record loss of £4 billion

Rolls-Royce CEO Warren East has remained confident about the company’s future, despite revealing a £4 billion loss for 2020. Cash burn is expected to halve in 2021 from £4.2 billion to £2.0 billion and will likely turn positive for the latter half of the year as post-vaccination air travel begins to recover. This projection is based on airlines flying 55% of 2019 levels for the year.

“We have our cash burn under control ... We have ample liquidity to get through this crisis as long as it lasts,” East said to reporters. One of the company’s major problems in 2020 was its policy of charging airlines for the number of hours its engines were flown. With such a downturn in air travel the company was forced to ask shareholders for cash and to also take on a further £5.3 billion in debt.

Rolls-Royce engines power both Airbus A350 and Boeing 787 aircraft and this usually generates over 50% of the group’s annual revenue. To cope with the effect of the COVID-19 pandemic the company shed 15% of its staff in 2020 and has earmarked £2.0 billion in assets for disposal to aid its balance sheet. While the search for a buyer for Rolls-Royce’s Spanish ITP unit is progressing well, the company has hit a major hurdle with the sale of it’s Norwegian unit Bergen Engines to a Russian-owned company, the Norwegian government has suspended the transaction citing security concerns. (£1.00 = US$1.20 at time of publication.)


MTU Maintenance Zhuhai and Sichuan Airlines sign engine MRO contract

MTU Maintenance, a global leader in customized solutions for aero engines, and long-standing partner Sichuan Airlines have strengthened their existing relationship with an engine MRO contract for the airline’s V2500 and CFM56-5B engines. The agreement covers 259 engines including spares for a five-year period. Services will be carried out at MTU Maintenance’s facilities in Zhuhai, Hannover and Vancouver. Sichuan Airlines operates 119 V2500 and CFM56-5B powered A319, A320 and A321 aircraft.

“We have established an excellent professional relationship with MTU Maintenance Zhuhai over the past decade,” says Shao Chuan, General Manager of Maintenance & Engineering Department of Sichuan Airlines. “As such we have selected them as our maintenance provider for our V2500 and CFM56-5B fleet. They have an outstanding reputation for highly-customized and cost-effective MRO services and we are confident they will provide us with the very best solution across our entire engine fleet.”

LCI places two news AW109SP helicopters with Sloane Helicopters

LCI, a leading helicopter leasing, management and investment platform, has placed two AW109SP helicopters on long-term operating leases to undertake EMS (emergency medical services) operations with its newest customer, Sloane Helicopters.

The two new Leonardo helicopters, which are the first of its type to enter LCI’s fleet, were recently delivered to Sloane Helicopters’ base at Sywell, Northamptonshire in the U.K.

They will be flown by Sloane Helicopters on behalf of The Air Ambulance Service - the local air ambulance provider for Warwickshire, Northamptonshire, Derbyshire, Leicestershire and Rutland, and a new end-user for LCI.


Transavia France selects TRAX eMobility electronic technical log

Transavia France is adding the suite of eMobility apps to its maintenance environment. With this addition to its TRAX core maintenance system, Transavia will transition to electronic technical logbooks and digital task cards. The airline will experience immense gains from going mobile and paperless.

eMobility apps are task-based and intuitive for end users with minimal training required and enhanced productivity achieved. Users access real-time information and are connected from anywhere with truly mobile off-line capability. Reduced aircraft maintenance delays combined with savings on labor manhours result in huge savings and operational efficiency.

Transavia will implement the iOS PilotLog, CabinLog, QuickTurn, and AeroDox apps along with the web-based Task Control app in Phase 1. In Phase 2 they will bring online the EzStock, VisualCheck, and Production Control apps.

GA Telesis appoints Fred Sontag Vice President Sales, Americas

GA Telesis has named Fred Sontag Vice President Sales, Americas for the Flight Solutions Group (FSG). In the role, he will oversee all sales responsibilities, including USM material, Tooling/GSE, OEM parts distribution, and Logistics services in the Americas region.

Sontag joined GAT in December 2020 with a wealth of experience in various sales, support, and business development roles over the span of 25 years in the OEM and aftermarket space. In addition to his sales duties, he will also retain his responsibilities as Vice President, Distribution Solutions Group for the near future.


Embraer delivers new Praetor 500 conversion to AirSprint

Embraer has delivered the first conversion of a Legacy 450 to a Praetor 500 jet, to AirSprint Private Aviation. The Canadian fractional ownership company has another Legacy 450 scheduled to convert to a Praetor 500 this year, in addition to the delivery of a brand-new Praetor 500, also in 2021. With these additions, AirSprint will have three Praetor 500s in its fleet, and a total of nine Embraer aircraft.

In total, Embraer has already converted 16 Legacy 450s into Praetor 500s in Europe and North America. The full conversion process can be performed at Embraer owned service centers.

BOC Aviation reports solid earnings for 2020

BOC Aviation has reported financial results for the full year ended December 31, 2020. BOC Aviation’s core business continued to perform well in the most challenging year in aviation history.

Net profit after tax was US$510 million, total revenues and other income exceeded US$2 billion for the first time in 2020, up 4% year-on-year, and total assets rose to US$23.6 billion as at December 31, 2020, 19% higher than 2019. Operating cash flows net of interest paid increased 13% for the full year compared with 2019.

BOC Aviation increased purchase and lease back activities, while reducing and deferring orders from manufacturers in the near term. The company delivered 54 aircraft to its airline customers, taking its owned and managed fleet to a new high of 398 aircraft.

VINCI Airports and easyJet establish two new routes from Toulon Hyères airport

Low-cost airline easyJet will provide its passengers with new destinations for the 2021 season by connecting them to the two capitals Paris and London, from Toulon Hyères Airport, France.

Paris Charles-de-Gaulle with four frequencies each week from June 28, 2021: a highly anticipated strategic route, which will act as a bridge between Toulon Hyères airport and international destinations thanks to the many other routes operated via the Parisian airport. This new route is a major opening for the inhabitants of the Var and a real asset for the international and economic development of the region.

London-Gatwick, airport operated by VINCI Airports, with 2 frequencies each week from June 23, 2021: by regaining its direct connection with the United Kingdom’s capital for the first time since 2018, Toulon Hyères airport will ease trade between the Var and London whilst over 4,000 British citizens have a second home in the region. Via London Gatwick’s easyJet base, Var passengers will also benefit from access to over 100 destinations operated by the company. The carrier will also offer a connection service with other partner airlines with its Worldwide by easyJet offer.

EDGE and Israel Aerospace Industries to develop advanced counter UAS Solution

EDGE, the UAE’s advanced technology group for defence and beyond, has agreed upon a memorandum of understanding (MoU) with Israel Aerospace Industries (IAI) - Israel's major aerospace and aviation manufacturer, to develop an advanced C-UAS (Counter-Unmanned Aircraft System) solution tailored to the UAE market, with wider ranging benefits for the MENA region and beyond.

Through leveraging IAI’s proven C-UAS solutions that are applied around the world to detect, identify, classify, and intercept a broad range of threats, EDGE, a young and disruptive company that has recently launched a series of electronic warfare solutions, is leveraging its subsidiary, SIGN4L, a provider of electronic warfare services and solutions for national security, to collaborate with the Israeli defence manufacturer to build the tailored C-UAS Solution.

Both SIGN4L and IAI will leverage their technical capabilities to jointly develop the system in response to specific customer needs. Further support will be available via IAI’s partnership with Belgium Advanced Technology Systems, Belgium, which has a local technical and marketing presence in the region.

FL ARI obtains CAAC Part 145 Maintenance Organization Certification for Base Maintenance

FL ARI Aircraft Maintenance & Engineering Company (FL ARI), an aircraft maintenance, repair and overhaul (MRO) service provider based in Harbin, China, has successfully completed the audit and received the Civil Aviation Administration of China (CAAC) approval on base maintenance capabilities, and has been granted Part 145 maintenance certification to carry out regular maintenance, repair, modification and other operations for Airbus A320 series aircraft.

FL ARI is a joint venture between FL Technics, a leading aircraft maintenance (MRO) service provider in Europe and China Aviation Aftermarket Holdings (CAAM), a subsidiary of China Aircraft Leasing Group (CALC).

The next step in company’s growth strategy is the base maintenance certificate for Boeing 737 NG family that the company is planning to receive in the next few months.


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Tamar Jorssen
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Email: tamar.jorssen@avitrader.com
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