Friday, August 2nd, 2019

COMAC’s fourth C919 prototype completes first test flight

Commercial Aircraft Corp of China (COMAC) has announced that its fourth prototype of the C919 narrow-body twin-engine passenger jet has successfully completed its first test flight.

The plane took off from Shanghai and lasted 1 hour 25 minutes. COMAC is looking to challenge Airbus and Boeing with its home-grown commercial jet. The company confirmed that its fifth and sixth prototypes are scheduled for their maiden test flights later on this year, while the third prototype first flew in December 2018. COMAC is hoping to obtain type certification by the end of 2020, but certain analysts consider this an optimistic target considering that the C919 has flown very few hours since its maiden flight in 2017.

By August 2018 there were 305 firm orders and options for a further 45, mainly from Chinese carriers, including Air China and China Eastern Airlines. COMAC is aiming to capture 20% of the global narrow-body market and a third of the Chinese market and anticipates sales of 2,000 units over the next 20 years.


Bombardier reports second quarter 2019 results

Bombardier’s revenues for the quarter were US$4.3 billion. Adjusted EBITDA and adjusted EBIT for the quarter were US$312 million and US$206 million respectively, mainly driven by a 7.0% adjusted EBIT margin at Business Aircraft while Transportation recorded a 5.1% adjusted EBIT margin. Transportation’s lower margin reflects additional cost pressure mainly on its large, complex legacy projects. On a reported basis, EBIT of US$371 million is largely driven by the gain of US$219 million on the sale of the Q Series program.

Free cash flow usage was US$429 million for the quarter and US$1.5 billion year to date, in line with the Company’s expectations for the first half of 2019.

Business Aircraft revenues increased by 6% year-over-year to US$1.4 billion on 35 deliveries, including 2 Global 7500 aircraft. Adjusted EBITDA for the quarter was stable year-over-year at US$146 million, even as production ramps up on the Global 7500. The adjusted EBIT margin of 7.0% during the quarter is lower against the same quarter last year, mainly as a result of higher amortization associated with Global 7500 deliveries. EBIT margin for the quarter was 6.1%.Light jet operators, while delivering better performance.

Commercial Aircraft: on May 31, 2019, the Corporation completed the previously announced sale of the Q Series aircraft program assets, including aftermarket operations and assets, to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft Company of Canada Limited), a wholly owned subsidiary of Longview Aviation Capital Corp., for gross proceeds of US$298 million.

During the quarter, the Corporation entered into a definitive agreement with Mitsubishi Heavy Industries (MHI) for the sale of its regional jet program for a cash consideration of US$550 million payable upon closing, and the assumption by MHI of liabilities related to credit and residual value guarantees and lease subsidies amounting to approximately US$200 million. The transaction is currently expected to close during the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.

Revenues reached US$516 million during the quarter on increased deliveries, including 6 Q400 deliveries prior to completion of the Q Series aircraft program sale and 11 CRJ. Year-over-year revenues decrease is due to C Series deliveries included in the comparable for the first half of 2018.

Adjusted EBIT of US$12 million includes US$21 million contribution from commercial aircraft programs, offset by US$9 million share of net loss in ACLP. EBIT for the quarter of US$226 million is largely driven by the US$219 million gain on the sale of the Q Series aircraft program to Longview.

Hongtu Airlines takes delivery of first A320neo on lease from GECAS

GECAS has delivered the first of four A320neo headed to Yunnan Hongtu Airlines (Hongtu Airlines). As announced at Farnborough 2018, Hongtu Airlines (operating as Air Travel) has agreed to lease four of the new-technology narrowbodies from GECAS’ skyline orderbook. This delivery marks the first LEAP-powered A320neo to enter service with Hongtu Airlines.

Launching operations in May 2016, the Kunming-based airline has more than doubled its fleet in the past year, with 9 aircraft from the Airbus A320 family – including A319, A320 and A321.


Liebherr-Aerospace delivers 5,000th heat exchanger unit

Only 30 months after Liebherr-Aerospace entered the Heat Exchanger maintenance market in 2016
with the opening of a dedicated Center of Excellence in Saline, Michigan (USA), the company was able to celebrate the delivery of its 5,000th heat exchanger unit. A milestone that attests the success of this repair activity.

With the decision to establish capabilities on this Liebherr product line of heat transfer components and to create a global center of excellence for aftermarket support, Liebherr-Aerospace excels on the cleaning, repair and re-core of heat exchangers. Repairs activity, which had previously been performed by various third parties, is migrating back into the Liebherr aftermarket network and is being received from a diverse customer base throughout the European, Asian, Middle East and Americas regions.

With initial capabilities on the Airbus A320 family, Bombardier CRJ family and the A380, the heat exchanger staff are working diligently to add capabilities for other Liebherr equipment installed on the Airbus A330 family, Airbus A220, Boeing 747-8, and Falcon 7X business jet.

By utilizing OEM parts and procedures, non-contact metrology, custom built cleaning and non-destructive testing setups, wire-EDM (Electrical Discharge Machining) cutting, adapted fixturing, and exploring more time savings techniques such as CMT (Cold Metal Transfer) robotic welding, Liebherr-Aerospace is continuing to be more efficient while maintaining superior OEM quality.

Turkish Airlines and Bangkok Airways announce new codeshare partnership

Turkish Airlines (TK) and Bangkok Airways have announced a new codeshare partnership, which will provide their passengers with convenient travel connections from Turkey to destinations in Thailand and other cities in Southeast Asia, commencing on August 1, 2019.

Under this agreement, codeshare flights operated by Bangkok Airways currently cover 16 roundtrip
routes on both domestic and international sectors; Bangkok-Chiang Mai, Bangkok-Chiang Rai, Bangkok-Lampang, Bangkok-Sukhothai, Bangkok-Trat, Bangkok-Samui, Bangkok-Phuket, Bangkok-Krabi, Samui-Phuket, Bangkok-Danang, Bangkok-Phu Quoc, Bangkok-Yangon, Bangkok-Mandalay, Bangkok-Nay Pyi Taw, Bangkok-Vientiane and Bangkok – Luang Prabang. In addition, two more roundtrip routes, Bangkok-Phnom Penh and Bangkok-Siem Reap are pending government


Spirit AeroSystems posts solid second quarter results

Spirit's second quarter 2019 revenue was US$2.0 billion, up from the same period of 2018. This increase was primarily driven by higher production volumes on the Boeing 777 and 787 programs, favorable model mix on the Boeing 737 program and higher revenue recognized on the Boeing 787 program. Second quarter net income was US$168 million up from US$145 in the second quarter 2018.

Spirit's backlog at the end of the second quarter of 2019 was approximately US$46 billion, with work packages on all commercial platforms in the Boeing and Airbus backlog.

Operating income for the second quarter of 2019 was US$226 million, up compared to US$218 million in the same period of 2018.

Cash from operations in the second quarter of 2019 was US$230 million, compared to US$231 million in the same quarter last year. Adjusted free cash flow in the second quarter of 2019 was US$193 million, up compared to US$171 million in the same period of 2018.

S7 Technics to increase Gazprom Avia's wheel repair work by 35%

Demand for aircraft wheel repair services by S7 Technics is accelerating. In July, the maintenance, repair and overhaul (MRO) specialist and Gazprom Avia, Russia's largest corporate airline, jointly signed a new wheel MRO contract to support the Boeing 737-700 and the Superjet 100 aircraft

Repairs to Gazprom Avia’s aircraft wheels will be performed by S7 Technics’ specialists at its base at Moscow’s Domodedovo airport and the provider’s transport logistics group is to deliver components to the repair base and also back to the airline.

For S7 Technics, Gazprom Avia has become one of its key customers for MRO services and aircraft components supply. Under the previous contract, the provider's specialists repaired 81 wheels, and according to the terms of the current contract, the amount of work will increase by 35%.

BOC Aviation places four new Airbus A321neo with Scoot

BOC Aviation has placed four new Airbus A321neo aircraft with Scoot Airlines, the low-cost arm of the Singapore Airlines Group. The aircraft are powered by Pratt & Whitney’s PurePower® PW1100G-JM engines, and are scheduled for delivery in the second half of 2020.

Magellan Group

Munich Airport US Holding appoints Jean-Pierre Tabet as the company’s Managing Director

Munich Airport US Holding, the US-based 100% subsidiary of Munich Airport International (MAI) for business in the United States and Canada, has appointed Jean-Pierre Tabet as the company’s Managing Director as of August 1st, 2019.

In his new role he will coordinate and manage all shared service support to the US Holding’s subsidiaries. Besides, Tabet will act as head of market for Munich Airport International in North America including the identification and analysis of opportunities and potential partnerships.

Jean-Pierre Tabet has a longstanding and broad career in the aviation sector. During the past 22 years at Fraport, he was amongst other positions deployed as Chief Commercial Officer at Cairo Airport and as Managing Director at King Khaled International Airport in Riyadh. Up until now, he served as Vice President Business Development at Fraport USA.

EngineStands24 opens hub in China

EngineStands24, a subsidiary of Magnetic MRO, a global provider of total technical care for aircraft operators and lessors, opened a new hub in Guangzhou, China.

The Guangzhou hub will be launched in cooperation with Magnetic MRO’s shareholder, Chinese company Hangxin Aviation Services and will begin operating by offering its customers a selection of the most popular engine stand types, like CFM56-5A/B, CFM56-7B and V2500. The variety will be increased to the most popular and requested wide-body engine stands in China and its neighbouring countries.

“China is a huge market with great potential,” shares Daiva Žemaitė, the Head of EngineStands24.
“In addition to that, we have a great sales force in China and all the local support we need by our mother company Hangxin.”

Žemaitė added that opening the new hub will support EngineStands24’s main strategic goals,
which are to grow geographically and increase the selection of engine stands. “Our new hub in China will enlarge our geographical presence which will be a really great advantage to our customers, especially those who have world-wide operations.”

The plan is to offer a wider service than just the lease of engine stands - engine stand pool management and efficient cost control are one of the company’s main targets.

The Guangzhou hub will be EngineStands24’s fourth hub after Dubai, Amsterdam and Tallinn.

CDB Aviation delivers 737-800 to new Russian customer

CDB Aviation has placed one Boeing 737-800 aircraft on a long-term lease to a new customer in Russia, Joint-stock company NordStar Airlines, with airport bases in Krasnoyarsk and Moscow (Domodedovo).

The 737-800 aircraft was delivered to the carrier in Ostrava, Czech Republic on July 30, and is expected to support the carrier’s expanding operations between Russian cities and the neighbouring regions within the Russian Federation and foreign countries.


Airbus Defence and Space appoints Julian Whitehead EVP Global Business and Strategic Programmes

Airbus Defence and Space has appointed Julian Whitehead Executive Vice-President Global Business and Strategic Programmes, effective October 1, 2019. Currently, he is serving as Executive Vice-President Finance for the division and is a member of the divisional Executive Committee.

Julian Whitehead will be succeeded by Xavier Tardy, also effective October 1, 2019, who currently serves as Head of Business Strategy within Airbus. In his future capacity as Executive Vice-President Finance for the division, Xavier Tardy will become a Member of the Executive Committee of Airbus Defence and Space.

In his new role in the division’s Executive Committee, Julian Whitehead will be responsible for
driving operational performance, ensuring programme and project management excellence across the division and establishing a robust focus on efficiency improvement.


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September 17, 2019 – Holiday Inn Kensington High Street, London, UK

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