Thursday, May 16th, 2019

Embraer posts fifth straight quarter loss ahead of Boeing deal

A combination of the delivery of fewer planes and a surge in spending ahead of the deal which will see Boeing take an 80 per cent stake in the commercial jets arm of the Brazilian planemaker has resulted in Embraer posting a US$42.5 million loss for the first quarter, 2019. Revenue fell 26 percent to US$281 million in the commercial aviation section as a result of the delivery of only
11 jets as opposed to 14 for the same quarter last year, while revenue for the whole company fell 14.1 per cent.

Despite the weak results and a fall of US$512 million in available cash, Embraer remains positive for its 2019 delivery forecast and is looking to boost numbers over the coming quarters. In all, Embraer hopes to deliver between 85 and 95 passenger jets and between 90 and 100 executive jets. In 2018 90 passenger and 91 executive jets were delivered.

The crash involving one of its yet-to-be-launched KC-390 military planes cost the company many millions of dollars, weak demand for executive jets and reduced deliveries of commercial jets created a considerable burden. However, the selling of 150-seat commercial jets has been profitable for several consecutive quarters, which highlights the concerns many have that Embraer is selling off the only profitable segment of the business.

Though the sale to Boeing is still awaiting regulatory approval, current problems with its 737 MAX program are not expected to delay the acquisition of a stake in Embraer. Embraer’s Chief Financial Officer Nelson Salgado also confirmed that Boeing’s problems would “absolutely not” boost demand for Embraer’s planes.

Aircraft Finance Germany

Rusada joins European Helicopter Association

MRO & Flight Operations software provider Rusada, has become the newest member of the
European Helicopter Association (EHA).

The EHA acts on behalf of the European rotorcraft industry, promoting the best interests of all sectors as an economically important, safe and sustainable industry essential to the success of European and national economies.

EHA members are placed across the industry from multiple sectors, and include the likes of
Airbus Helicopters, Leonardo, Safran and Bell.

Rusada was invited to join the association following its extensive efforts in supporting the rotorcraft industry. Its software ENVISION has allowed rotary operators in the region to digitize their maintenance activities, saving countless hours of time and ensuring safe and compliant operations.

As an Elite partner to Airbus Helicopters, Rusada is perfectly placed to support the EHA in achieving
its goals and to further promote the use of rotary aircraft in the region.

Component Control

Airbus names Antoine Bouvier Head of Strategy

Airbus has appointed Antoine Bouvier, Head of Strategy, Mergers & Acquisitions and Public Affairs, effective June 1, 2019. In this position, he will report to Guillaume Faury, Chief Executive Officer (CEO) of Airbus.

At MBDA, Antoine Bouvier will be succeeded as CEO by Eric Béranger who has held a number of leadership positions in Airbus Defence and Space. His appointment will also become effective June 1, 2019. MBDA, a joint venture between Airbus (37.5%), BAE Systems PLC (37.5%) and Leonardo S.p.A. (25%), is Europe’s leading missile systems house.

Furthermore, Patrick de Castelbajac is appointed Head of Region Asia-Pacific for Airbus, effective June 1, 2019. In this capacity, he succeeds Jean-Marc Nasr who was recently appointed Executive Vice President Space Systems within Airbus Defence and Space. Patrick de Castelbajac is also named Head of Sales Asia-Pacific for the Company’s commercial aircraft business as of July 1, 2019. Patrick de Castelbajac will report to Christian Scherer, Chief Commercial Officer and Member of the Executive Committee at Airbus.

Bombardier and JETEX to establish new line maintenance station in Dubai

Bombardier has signed an agreement with JETEX for the establishment of a new Line Maintenance Station in Dubai, further complementing the tip-to-tail maintenance services provided by Bombardier’s Service and Support Network in the Middle East and around the globe.

The new Line Maintenance Station will initially offer unscheduled maintenance services and build toward scheduled maintenance operations in the coming months. The technical engineers supporting the line station are certified for all Challenger series and Global series business jets, including Bombardier’s flagship Global 7500 aircraft.

TP Aerospace

AeroCentury posts first quarter net loss of US$1.3 million

AeroCentury, an independent aircraft leasing company, has reported a first quarter net loss of US$1.3 million, compared to net income US$0.3 million for the first quarter of 2018.  First quarter 2019 results reflect the combined operations of AeroCentury and its subsidiary, JetFleet Holding (JetFleet), which was acquired on October 1, 2018.

EBITDA was US$4.4 million compared to US$1.9 million in the preceding quarter and US$5.7 million a year ago. Average portfolio utilization was 98% during the first quarter of 2019, compared with 95% in the preceding quarter.  The increase was a result of the sale of off-lease aircraft during 2018.  Average portfolio usage was 90% during the first quarter of 2018.  The year-over-year increase was a result of the net effect of the acquisition of two aircraft during the second quarter of 2018 and sales of off-lease assets during 2018. Total revenue and other income increased 18% to US$7.6 million for the first quarter of 2019, compared to US$6.4 million in the preceding quarter.


Avion Express offered assistance to airlines affected by grounding of Boeing 737 MAX

The grounding of Boeing 737 MAX brought unexpected challenges to multiple airlines worldwide. In reaction to these circumstances, Avion Express ramped up the operations to support its current and new clients. The narrow-body ACMI operator demonstrated its flexibility and readiness to support airlines affected by the suspension of Boeing 737 MAX.

As such, with over 11% of fleet grounded, Norwegian, Europe’s third largest airline, turned to Avion Express for assistance. According to the signed contracts, the ACMI operator will provide up to 4 Airbus A320 aircraft to operate for Norwegian in the span of April-June 2019.

Additionally, in March-April 2019 Avion Express provided services for Royal Air Maroc to assist the airline in overcoming the absence of Boeing 737 MAX aircraft. The Moroccan carrier is a recurrent partner of Avion Express that has been reaching out for additional capacity and crew in times of need.

While supporting the abovementioned operations, during the first part of the year Avion Express kept continuously working with its other long- and short-term customers such as Thomas Cook Airlines, Condor, Sky Angkor Airlines, SunExpress, Onur Air, Tunisair, Transavia and others.

VAS Aero Services

AviationCV.com appoints Mindaugas Gumauskas as CEO

AviationCV.com has appointed Mindaugas Gumauskas as Chief Executive Officer (CEO) of the company. Formerly Head of TVPlay Premium Baltics at All Media Baltics, Gumauskas is succeeding Skaiste Knyzaite, who had led the company since January 2011.

AviationCV.com is part of Avia Solutions Group – an aviation family of 42 companies.

IAG Engine Center Europe receives EASA CFM56-5B certification

The European Union Aviation Safety Agency has approved IAG Engine Center Europe S.r.L.’s CFM56-5B certification. This certification allows the company to provide full CFM56-5B MRO services. MRO services will be carried out in the Rome, Italy facility located near the Leonardo da Vinci - Fiumicino Airport. IAG Engine Center Europe will focus on customized workscopes allowing lean operations.

Aviation Week

Finnair entrusts Magnetic MRO with painting and refurbishing of ATR fleet

Magnetic MRO and Finnair, the flag carrier of Finland, have signed a contract for complete paint work, full interior refurbishment and base maintenance on all 12 of the airline’s ATR 72 fleet operated for Finnair by its partner company Norra. The first aircraft was delivered from Magnetic MRO’s Tallinn hangars to the customer on May 8th.

The agreement includes painting all 12 of the ATR aircraft into the Finnair livery. In addition to the new livery, the aircraft will receive full interior refurbishment. For Magnetic MRO’s Interior team, this project involves producing the largest number of new details for an aircraft that the company has ever manufactured for a single interior project. The project is also a first for the company in providing base maintenance for ATR type aircraft. The project is expected to be completed by the end of Q1, 2020.

Great Dane Airlines newest operator of Embraer E-Jets

Great Dane Airlines, from Denmark, has become the most recent customer of the Embraer E-Jets. Based at Aalborg Airport in Denmark, Great Dane begins operations in June with two E195 jet aircraft.

As well as offering charter services to the market, Great Dane will initially serve routes to Chania, Mallorca, Varna, and Rhodes. Soon after, the airline will add Dublin, Edinburgh, and Nice to their network. Both aircraft were purchased from Stobart Air.

Magellan Group

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ap&m Europe 2019 - The Global MRO Procurement Expo
June 4 - 6, 2019 – Maritim Hotel Frankfurt and Messe Frankfurt, Frankfurt, Germany

Managing Technical Aspects of a Leased Asset & Maintenance Reserves Seminar Training Seminar
June 11 - 12, 2019 – Novotel Barcelona City Hotel, Barcelona, Spain

Paris Air Show 2019
June 17 - 23, 2019 – Le Bourget, Paris, France