Thursday, August 15th, 2019

Ryanair threatened with further strike action – Spanish cabin crew now join the queue

With Ryanair cabin crew unions in Britain, Ireland and Portugal having already announced plans to strike over the coming weeks, Spanish workers’ unions, SITCPLA and USO, are backing cabin crews’ intentions to hold ten days of strikes on September 1, 2, 6, 8, 13, 15, 20, 22, 27 and 28, unless Ryanair makes suitable concessions over the next few days.

Unlike other grievances which relate to pay and conditions, the Spanish strikes are in protest at the planned closure of Ryanair bases at Gran Canaria, Tenerife South and Girona airports. SITCPLA spokesman Manuel Lodeiro commented that the unions were open to mediation by Spanish labor agency SIMA, but pessimistically declared: “we doubt very much the willingness of Ryanair to reach an agreement.”

Spanish pilots are also due to vote on industrial action over pay and conditions. Further unrest at Ryanair has been created by the announcement two weeks ago that owing to problems with the grounding of the 737 MAX jet and subsequent delays in deliveries of the jet, the Irish low-cost carrier would have 900 pilots and crew surplus to requirements at the end of the summer holiday season.
Eirtech Aviation Services

Pratt & Whitney to open new PT6A and PW200 engine overhaul centre in Brazil

Pratt & Whitney has released that it is collaborating with Indύstria de Aviação e Serviços (IAS) to open a new overhaul facility in Belo Horizonte, Brazil, for PT6A and PW200 engines.

Pratt & Whitney has operated in Brazil for more than 75 years and remains the country’s leading supplier of General Aviation engines. The company also powers a large number of the nation’s aircraft for government, commercial and business use. This experience gives Pratt & Whitney’s local team the unique insight and ability to personalize services and solutions to meet customers’ needs.

This new facility builds on an existing service network in the country including Sorocaba, a hot section inspection and parts distribution center. More recently, three sites joined the Pratt & Whitney designated maintenance facilities network in Brazil for the line maintenance and mobile repair of PT6A and helicopter engines. ABA Manutenção de Aeronaves in Barreiras serves the needs of agricultural operators, Rico Táxi Aéreo in Manaus serves PT6A general aviation operators and Helipark Manutenção in São Paulo services several Pratt & Whitney helicopter engines.

The company expects the Belo Horizonte facility to be operational by the end of 2019.
Bombardier MRO

Air Canada announces first new routes operated with Airbus A220-300

Air Canada has announced the first two new routes to be operated with the Airbus A220-300, the only non-stop service between Montreal and Seattle and between Toronto and San Jose, California, both beginning in spring 2020. As well, the carrier also provided a first look at the interior features of its newest aircraft, which will offer customers a choice of Business and Economy Class service, its newest in-flight entertainment system, onboard Wi-Fi and more.

Air Canada's two-class cabin on the A220 will have a total of 137 seats: 12 in a 2x2 configuration in Business Class and 125 in a 3x2 layout for Economy passengers. Every seat on the A220 features a Panasonic eX1 in-flight entertainment system with content available in 15 languages and featuring more than 1,000 hours of high-quality entertainment, including access to Bell Media’s premium entertainment service, Crave, and Canadian-based multi-platform audio service, Stingray.

"This aircraft is a game changer for Air Canada as there is simply no rival in this category. The A220 will further strengthen our position on transborder and transcontinental markets and be instrumental in our continued growth. Our customers will benefit from innovative design features in a spacious and comfortable cabin. When connecting through our hubs across Canada onward to international destinations, customers travelling on an A220 will benefit from a virtually seamless cabin experience offering the same level of service and comforts as on a widebody aircraft," said Mark Galardo, Vice President of Network Planning at Air Canada.
Revima Group

CAVU Aerospace hires industry veteran William Johnson

CAVU Aerospace has hired well-respected industry veteran, William “Bull” Johnson. With over 30+ years’ experience in the aviation and aerospace industry, focused on both line and heavy aircraft maintenance, Johnson is an aviation professional with experience in air carrier, repair station and military environments on various types of rotary and fixed wing platforms.

Prior to joining CAVU, he completed twenty-two years with AAR in various positions. Most recently, he was assigned to the AAR Expeditionary Services/Airlift, a DoD-contracted Part 135 OCONUS intra-theater airlift provider. Johnson will assume the role of General Manager of CAVU Aerospace’s 145 Certificated Repair Station in Roswell, New Mexico.
Component Control

Lufthansa Technik Malta receives approval for Airbus A350-1000 overhauls

Lufthansa Technik Malta is now officially prepared to carry out all overhaul work on the Airbus A350-1000. The company has received
the requisite license from the German Federal Aviation Office (LBA).

The recent certification amends the approval to perform overhaul work on the baseline A350-900, which was already received in 2018. With immediate effect, Lufthansa Technik Malta is hence also permitted to work on the stretched version of the twin-engine widebody. The necessary overhaul lines and docks were already adapted to the new subtype at the time of the earlier approval.

Already in 2018, more than 50 employees of Lufthansa Technik Malta attained the necessary qualifications and practical knowledge to work on the A350-900. These skills are now also being used to perform overhauls on the larger type. A total of more than US$3 million has been invested in the preparation for overhauls of both types, with the first three customers expected until the end of this year.
VAS Aero

Embraer reports second quarter results, reaffirms 2019 financial guidance

Embraer has delivered 26 commercial and 25 executive (19 light and 6 large) jets during 2Q19, compared to 28 commercial jets and 20 executive (15 light and 5 large) jets in 2Q18;

The Company’s firm order backlog at the end of 2Q19 was US$ 16.9 billion, up from the US$ 16.0 billion reported at the end of 1Q19. Embraer achieved book-to-bills of above 1x in each of its major business units during the quarter, led by sales performance in the Executive Jets segment;

EBIT and EBITDA in 2Q19 were US$ 26.6 million and US$ 67.0 million, respectively, yielding EBIT margin of 1.9% and EBITDA margin of 4.9%. In the first six months of 2019 the Company’s EBIT was US$ 11.4 million (EBIT margin of 0.5%) and EBITDA was US$ 97.9 million (EBITDA margin of 4.4%);

2Q19 Net income attributable to Embraer shareholders and Earnings per ADS were US$ 7.2 million and US$ 0.04, respectively. Adjusted net loss (excluding deferred income tax and social contribution) for 2Q19 was US$ (13.9) million, with Adjusted loss per ADS of US$ (0.08). Embraer reported adjusted net loss in 2Q18 of US$ (0.4) million, for an adjusted loss per ADS of US$ (0.002) in the quarter;

Embraer reported 2Q19 Free cash flow of US$ 1.5 million, versus free cash flow of US$ 43.3 million reported in 2Q18. The Company expects free cash flow generation to improve in the second half of the year given higher expected aircraft deliveries and cash inflows related to Defense & Security contracts;

The Company finished the quarter with total cash of US$ 2,478.8 million and total debt of US$ 3,569.1 million, yielding a net debt position of US$ 1,090.3 million at the end of 2Q19;

The Company reaffirms all aspects of its 2019 financial and deliveries guidance.

thyssenkrupp Materials Services introduces state-of-the-art digital supply chain

thyssenkrupp Materials Services is continuing its digitalization offensive with the introduction of a flexible IT infrastructure for smart, agile management of all processes along the supply chain. Material deliveries, customer purchase orders, order execution, transportation logistics – the digital accelerator DESCA can process and forward millions of datasets in seconds. And it’s customers who benefit the most: With DESCA, Materials Services is shortening order lead times, optimizing warehousing logistics and paving the way for new supply chain services. So the system truly lives up to its name: DESCA stands for Digital Extended Supply Chain Accelerator.

DESCA is an important element of thyssenkrupp Materials Services’ strategy. Under its “Materials as a Service” approach the western world’s biggest materials distributor guarantees its customers access to global supply markets combined with in-house process expertise in the form of tailored supply chain solutions. So in addition to its core materials distribution business, Materials Services is systematically expanding its portfolio of services.

DESCA is based on SAP HANA. Unlike conventional ERP systems DESCA allows flexible integration of data from various internal and external sources. For example, order information can be compared with processing data from Materials Services’ connected machinery – in the future also in real time and via an app. This is a particularly attractive option for sectors that place high demands on a flexible supply chain such as the aerospace industry. That’s why DESCA was first put through its practical paces at selected branches of thyssenkrupp Aerospace in North America.

“Smart data integration is the key to greater efficiency and customer service. Our new ERP system creates the technological platform for this,” says Patrick Marous, CEO of thyssenkrupp Aerospace. “We’re playing a pioneering role as one of the first major users in the aerospace industry to switch to the latest SAP environment. The first phase showed that DESCA helps us significantly
strengthen our core capabilities in smart supply chain management.” Visualizations display the relevant data at a glance. “DESCA has a dashboard that shows us what we have to do in the next few hours and helps us systematically align our management model to the future,” adds Marous.

DESCA is the engine of the digitalization offensive at Materials Services: The data gathered from all areas of the supply chain in the new ERP system are fed to “alfred”, the in-house artificial intelligence solution launched by the materials distributor at the beginning of 2019. DESCA also communicates with “toii”, the company’s IIoT platform that connects all its machinery worldwide.
GA Telesis

ST Engineering posts higher revenue and profits in 2nd quarter 2019

Singapore Technologies Engineering (ST Engineering) has reported that it registered higher revenue and profits for its second quarter ended 30 June 2019 (2Q2019) compared to the same period a year ago. Quarterly revenue grew 8% y-o-y to SG$1.78 billion from SG$1.65 billion, and Profit before tax (PBT) rose 13% to SG$169.7 million from SG$150.4 million. Profit attributable to shareholders (Net Profit) was up 18% to SG$138.2 million from SG$117.5 million. Newly acquired MRAS was consolidated from April 18, as part of its Aerospace sector’s Engineering & Material Services business group.

At the business sectors, revenue for the Aerospace sector was up 17% y-o-y to SG$836 million from SG$713 million, with MRAS as the main contributor, partly offset by the absence of engine sales and Jet Airways revenue. Despite contribution from MRAS, its Net Profit was 4% lower y-o-y at SG$64.2 million from SG$66.6 milliom mainly due to the absence of prior year’s profits arising from the divestment of an associated company and opportunistic engine sales. Revenue for the Electronics sector was SG$495 million, down 3% from SG$512 millio a year ago and Net Profit was 5% lower y-o-y at SG$44.3 milion from SG$46.7 million, largely due to timing in revenue recognition for projects and higher selling and distribution expenses as a result of increased sales activities to support international expansion.


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