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Thursday, July 15th, 2021

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EU targets airlines in push to meet continent-wide CO2 emission targets

On Wednesday, the European Union's executive Commission made it clear that aviation must do more by 2030 to contribute to the EU's goal to cut economy-wide net emissions by 55% from 1990 levels. As a consequence, current tax breaks enjoyed by airlines on jet fuel would see it become taxed in line with other transport sectors, following a phased introduction over 10 years to allow the aviation sector to recover from the impact of the COVID-19 crisis. Additionally, suppliers of aviation fuel will be expected to blend a minimum of 2% of sustainable aviation fuel (SAF) into their kerosene from 2025, rising to 5% in 2030 and 63% in 2050.

A portion of the total binding target for SAF - 0.7% in 2030 rising to 28% in 2050 - would be reserved for new e-fuels, which are currently limited in availability and also costly when compared to kerosene. Additional restrictions would reduce the level of what is known as ‘tanking’ which enables airlines to fly in cheaper fuel from elsewhere for the return trip.

In a separate bid to overhaul the EU's carbon market, the Commission proposed phasing out free CO2 permits by 2026 for airlines whose flights within Europe are covered by the scheme. That would result in carriers paying more for their emissions which would likely be passed on to consumers through higher fares. Brussels gives carriers most of the CO2 permits they need to comply with the carbon market for free, capping their exposure to the price of the permits, which has hit record highs of above 58 euros per tonne of CO2 this year.

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Sundt Air adds third Bombardier Challenger business jet to its fleet

Norway-based Sundt Air has taken delivery of a brand-new Challenger 350 business jet. Sundt Air, an executive charter, aircraft management, and special mission company, will manage the Challenger 350 business jet out of Oslo.

From Western Europe, the Challenger 350 business jet can take eight passengers nonstop all the way to North America or fly from Oslo to Dubai. Its runway agility enables it to operate from highly sought-after European destinations such as Lugano and Cannes and from short runways, such as in Gstaad, Switzerland. In 2019, the Challenger 350 aircraft successfully completed a record speed flight from Gstaad to Malaga, Spain, completing the mission in two hours and four minutes at an average cruise speed of Mach 0.82. The Challenger 350 aircraft is also certified for steep approach into London City Airport.

Castle Aviation completes WinAir Version 7 implementation

Castle Aviation has completed its WinAir Version 7 implementation and is live with the aviation management software. After kicking off its software implementation amidst the current COVID-19 pandemic using fully remote processes and procedures, the company recently concluded a seamless transition to the software this past March. With this implementation now complete, Castle Aviation is excited to boost efficiencies across all facets of its operation and is anticipating ongoing business growth with the product.

Castle Aviation is a private passenger airline and cargo operation that specializes in priority freight. The company was established in 1986 in North Canton, Ohio, by current CEO and Owner Michael Grossman. It currently operates and maintains a fleet comprised of eight Cessna 208B Super Cargomasters, four Piper Aerostars, one Swearingen Metroliner, and six Saab 340Bs. It also offers maintenance services to support private aircraft, corporate aircraft, and flight schools.

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Delta Air Lines posts June-quarter 2021 financial results

Delta Air Lines (Delta) has released its financial results for the June quarter of 2021: Delta reported adjusted pre-tax loss of US$881 million excludes US$1.5 billion of benefit related to the first and second payroll support program extensions (PSP2 and PSP3, respectively) and mark-to-market adjustments on its investments Adjusted operating revenue of US$6.3 billion, which excludes refinery sales, declined 49% on 39% lower sellable capacity versus June quarter 2019. Total operating expense, which includes US$1.5 billion of benefit related to PSP2 and PSP3, decreased US$4.1 billion relative to the June quarter 2019.  Adjusted for the benefit related to the PSP programs and third-party refinery sales, total operating expense decreased US$3.3 billion or 32% in the June quarter 2021 versus the comparable 2019 period.

Adjusted operating revenue of US$6.3 billion for the June quarter improved 76% from March quarter 2021. Compared to the same period in 2019, adjusted operating revenue declined 49%, an improvement from the company’s guidance update in June of down 50- to 52%. Passenger revenue declined 53% in the June quarter 2021 compared to June quarter 2019 on 32%t lower scheduled capacity and 39% lower sellable capacity, which included the blocking of the middle seat through the month of April 2021. Total unit revenue, adjusted was 45.4% higher than the March quarter 2021 as adjusted operating revenue grew 76% on a 21% increase in scheduled capacity over the same period. Compared to the March quarter 2021, system yields improved 4.8% and load factors improved 24 points.

The company generated US$1.9 billion of operating cash flow, US$1.5 billion of free cash flow and US$195 million of free cash flow, adjusted in the June quarter. At the end of the June quarter, the company had US$17.8 billion in liquidity, including cash and cash equivalents, short-term investments, and undrawn revolving credit facilities. The company had total debt and finance lease obligations of US$29.1 billion with adjusted net debt of US$18.3 billion.

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MTU Maintenance and Sunclass Airlines sign CFM56-5B service contract

MTU Maintenance and new customer Sunclass Airlines have signed an exclusive five-year contract for the maintenance, repair and overhaul of the carriers CFM56-5B engines. The agreement covers comprehensive MRO support, AOG, and on-site services as well as spare engine leasing. Sunclass Airlines operates a fleet of sixteen CFM56-5B engines powering eight A321 aircraft.

“We selected MTU Maintenance as our exclusive service provider due to their intelligently customized and integrated service package,” says Henrik Mørch Jensen, Technical Director, Sunclass Airlines. “We look forward to receiving excellent care, innovative and cost-effective MRO solutions, including used LLP material supply, as well as individually-tailored technical support.”

Sunclass Airlines is a Danish charter airline that operates flights in Denmark, Finland, Norway and Sweden. Formerly Thomas Cook Airlines Scandinavia, the airline was taken on by the Ving, Spies and Tjäreborg group in 2019 and rebranded as Sunclass Airlines.

Diehl Aviation and HAECO Cabin Solutions enter into strategic commercial agreement

HAECO Cabin Solutions, a business unit of the HAECO Group specializing in aircraft seating, interiors, and cabin reconfiguration, has entered into a preferred strategic commercial agreement with Diehl Aviation to deliver a wide range of aircraft cabin projects including complex, bespoke installations, as an integrated supplier.

Combining their core competencies and experience, Diehl Aviation and HAECO Cabin Solutions are jointly poised to become the market leader in aircraft cabin optimization projects. The companies’ joint capabilities allow them to seamlessly offer all aircraft interior components including sidewalls, stowages, lighting, galleys, lavatories, seating, reconfiguration engineering, certification, and installation.
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Tamar Jorssen
Vice President Sales & Business Development
Email: tamar.jorssen@avitrader.com
Phone: +1 (788) 213 8543
Tamar