Monday, August 19th, 2019


Cathay Pacific CEO and CCO to resign amidst Hong Kong turmoil

Cathay Pacific’s chief executive officer Rupert Hogg and chief commercial officer Paul Loo are to step down as the Hong Kong-based carrier struggles with fallout from nearly four months of political protests. Cathay said last week that protests affected its passenger numbers last month and were continuing to "adversely impact" future bookings. "Recent events have called into question Cathay Pacific's commitment to flight safety and security and put our reputation and brand under pressure," said Cathay Chairman John Slosar in a statement.

In recent days the international airport in Hong Kong has been overrun by political protesters, forcing Cathay Pacific to cancel hundreds of flights. "This is a grave and critical time for our airlines. There is no doubt that our reputation and brand are under immense pressure and this pressure has been building for some weeks, particularly in the all-important market of mainland China," Hogg wrote in a memo to staff, as reported by CNN Business. "Could we have managed things differently? In hindsight, 'yes'," Hogg added.

China has made it clear that it will not allow a Cathay Pacific flight to use China’s airspace if any of the crew onboard have been involved in any political protest. While not confirming why, the carrier confirmed on Wednesday that two pilots’ contracts had been terminated, though a Cathay Pacific employee indicated one of the pilots had allegedly been charged with rioting. Merlin Swire, the head of Cathay Pacific’s biggest investor, Swire Pacific, has openly condemned what he calls "illegal activities and violent behavior" in Hong Kong. Hogg will be replaced as CEO by Augustus Tang, the chief executive of Hong Kong Aircraft Engineering Company, a Swire firm. Loo will be replaced by Ronald Lam, the head of Cathay Pacific subsidiary HK Express.
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Joint venture partners Air New Zealand and Singapore Airlines will boost capacity between Auckland and Singapore

Air New Zealand will increase its frequency from 12 to 14 services per week on its Boeing 787 Dreamliner aircraft from March 2020 to October 2020, bringing the total number of services the two alliance partners operate to 21 per week.

Singapore Airlines will also
deploy its larger A380 aircraft to meet strong demand over the Easter
2020 peak, replacing its scheduled Boeing 777-300ER aircraft.

Air New Zealand Chief Strategy Networks and Alliances Officer Nick Judd says the changes come in response to growing demand from customers at both ends of the route.

The announcement follows recent capacity increases on the Christchurch - Singapore and Wellington - Singapore routes announced in the last six months, which are also part of the Joint Venture agreement between the two airlines.

Delta, Virgin Atlantic boost summer flying between U.S. and U.K.

Delta is boosting its transatlantic schedule between London-Heathrow and its coastal hubs in Boston and New York-JFK next summer, adding 15% capacity compared to 2019. Alongside joint venture partner Virgin Atlantic, the two airlines will increase capacity across the Atlantic by nearly 10,000 seats per week compared to this year.

Additionally, Delta is set to return to London’s Gatwick Airport alongside Virgin Atlantic with new services from Boston and New York-JFK effective May 21, 2020. Gatwick will become the seventh transatlantic destination served nonstop by Delta from Boston, while flights from New York-JFK will be operated by Virgin Atlantic. Gatwick is currently the largest unserved European market from New York and will be one of four daily flights from three U.S. cities next summer for the partners. It offers easy access to south London and some of the capital’s top sites, including Westminster and Buckingham Palace.

Honeywell opens first Aviation Service Center in Latin America

Honeywell has opened its first aviation service center in Latin America in São José dos Campos, a city located 94 km from the state capital. On site, the company will offer services such as aircraft parts replacement, repair and overhaul.

São José dos Campos was chosen for its history in the aviation market and the proximity of Embraer and the city of São Paulo, besides other urban centers in the southeast region where the main airlines in the country are located. The Service and Maintenance Center is in a 500 m² area in the Technological Park of São José dos Campos.

Aerospace is one of Honeywell’s four business units and has been responsible for aviation innovations such as the first autopilot flight control and the first commercial weather radar system. In total, the company’s portfolio has 84 product lines that focus on creating more economical, practical and environmentally friendly airplanes.

Héroux-Devtek reports strong first quarter results

Landing gear manufacturer Héroux-Devtek, has reported strong financial results for the first quarter ended June 30, 2019.

Consolidated sales grew 67.2% to CA$143.4 million, up from CA$85.8 million in the same period last year. CA$44.6 million of this increase was driven by the CESA and Beaver acquisitions while the growth of Héroux-Devtek legacy sales contributed 15.2% or CA$13.1 million. Commercial sales grew 47.4% to CA$67.4 million, up from CA$45.8 million in the same period last year. The strong increase was driven by the CESA and Beaver acquisitions and growing legacy sales from the ramp-up of the Boeing 777/777x programs.

Defence sales grew 89.9% to CA$76.0 million, up from CA$40.0 million in the same period last year. This strong increase was driven by the CESA and Beaver acquisitions, growing Héroux-Devtek legacy sales mainly from the ramp-up of the F-35 program and higher aftermarket sales. Gross profit increased to CA$24.2 million, or 16.9% of sales, up from CA$13.1 million, or 15.2% of sales last year. The increase is attributable to the impact of the Beaver and CESA acquisitions and positive foreign exchange rate fluctuations, partially offset by higher manufacturing costs at our Longueuil facility.

Operating income increased to CA$10.4 million, or 7.2% of sales, up from CA$4.9 million, or 5.7% of sales last year. This quarter’s operating income included CA$0.6 million of non-recurring items, up from CA$0.4 million of non-recurring items in the same period last year. These non-recurring items are mainly acquisition-related costs. Adjusted EBITDA, which excludes these non-recurring items, stood at CA$21.5 million, or 15.0% of sales, compared with CA$12.2 million, or 14.3% of sales, one year ago. Net income for the first quarter of fiscal 2020 stood at CA$6.4 million up from CA$3.6 million in the corresponding period of last fiscal year. Excluding non-recurring items net of taxes, adjusted net income reached CA$7.0 million up from CA$3.8 million last year.

Embraer advances in evelopment of demonstrator aircraft with electric propulsion technology

Embraer has unveiled images of the demonstrator aircraft with 100% electric propulsion technology, which is currently under development. The prototype has a special paint scheme and is ready to receive systems and components.

The aircraft's electric motor and controller are being manufactured by WEG at the company's headquarters in Jaraguá do Sul, Santa Catarina, Brazil, as part of the scientific and technological cooperation agreement for jointly development of electrification technologies.

Advances on the project include the partnership with Parker Aerospace that will be responsible to
supply the cooling system for the demonstrator aircraft.

On the forthcoming months, the companies' technical teams will continue to test the systems in the labs preparing the integration in the demonstrator aircraft for testing under real operating conditions. The first flight of the prototype is scheduled for 2020.

Atkins to collaborate with AERALIS to develop new suite of training jet aircraft

Atkins, a member of the SNC-Lavalin Group, is collaborating with aircraft designer and manufacturer AERALIS to develop a new family of training jet aircraft using a patent-pending modular design.

Together, the organisations will design two types of modular aircraft – the Basic Trainer and the Advanced Trainer – which will provide training, from cadet to front-line pilot, for the most advanced combat aircraft systems currently in development.

Each aircraft will comprise a common core fuselage that will be fully adaptable using different wings and engines depending on the
level of training being undertaken. It is expected that the acquisition and maintenance of the family of training jets will cost 30% less than a conventional flight training system thanks to the modular design affording an 85% commonality in aircraft parts.

Atkins, who have been at the forefront of aerospace design for 30 years, will be advising on the design of the jets, using a digital twin to explore different design concepts for the fuselage and its
interchangeable components.

Dave Clark, Aerospace & Defence Market Director at Atkins, said: “Our collaboration with AERALIS provides us with a great opportunity to help shape the development of cutting-edge aircraft design. Thanks to innovative tools such as a digital twin, we will be able to run virtual tests on the training jets before they are built to drive efficiencies and reduce the risks associated with aircraft design and production.”

Passenger traffic rises at Frankfurt Airport

Frankfurt Airport (FRA) welcomed more than 6.9 million passengers in the reporting month, up 0.8% compared to July last year. For the first seven months of the year, passenger traffic at FRA rose by 2.6%. Aircraft movements in July 2019 climbed by 1.0% to 47,125 takeoffs and landings, while accumulated maximum takeoff weights (MTOWs) expanded by 2.4% to over 2.9 million metric tons. FRA’s cargo throughput (airfreight + airmail) also grew by 1.5% to 178,652 metric tons.

Across the Group, airports in Fraport’s international portfolio reported differing development in passenger traffic. Slovenia’s Ljubljana Airport (LJU) achieved a 4.2% jump in traffic to 207,292 passengers. Fraport’s two Brazilian airports in Fortaleza (FOR) and Porto Alegre (POA) together received about 1.3 million passengers – a decline of 9.9% year-on-year. This decline, among other things, can be attributed to the bankruptcy of Avianca Brasil – whereby other carriers temporarily were unable to fully absorb the traffic volume.

With nearly 2.1 million passengers, Peru’s Lima Airport (LIM) recorded a further 4.9% rise in traffic. The 14 Greek airports together welcomed some 5.3 million passengers in July 2019, decreasing 0.8% year-on-year. This light downturn resulted from the consolidation of flight offers by some airlines serving the Greek market.

On the Bulgarian Black Sea coast, the Twin Star airports of Varna (VAR) and Burgas (BOJ) together served about 1.2 million passengers. The resulting 13.2% drop in passengers is a continuation of the consolidation trend seen in previous months, following the rapid passenger growth in figures at the Twin Star airports in recent years. In contrast, Antalya Airport (AYT) on the Turkish Riviera reported almost 5.4 million passengers, again recording strong growth of 11.7% in July 2019. Registering some 2.2 million passengers, Russia’s St. Petersburg Airport (LED) also achieved growth of 4.9%. Traffic at China’s Xian Airport (XIY) almost reached 4.3 million passengers, a 7.4% gain compared to the same month last year.

Virgin Galactic opens doors to ‘Gateway to Space’

Virgin Galactic has revealed the first look at the interior fit-out of its Gateway to Space building at Spaceport America in New Mexico. The work completed showcased two floors of the building primarily focused on spaceflight operations, which also incorporates communal spaces designed for use in the future by Virgin Galactic customers, along with their friends and families. Completion of this interior work means the spaceport facility is now operationally functional and able to support Virgin Galactic’s flight requirements.

One of the hallmarks of the Virgin brand for over nearly half a century has been the use of inspired and bold design to transform customer experiences. It is an ethos that has been successfully applied across industrial sectors and design disciplines. From aircraft cabins to hotel bedrooms and from fitness classes to bank accounts.

Virgin Galactic has striven to remain faithful to that tradition by choosing an elegant, experience-focused concept for the space launch system itself. Similarly, the company’s choice to operate from Spaceport America in New Mexico was due in no small part to the state’s decision to commission landmark architecture for the world’s first purpose-built commercial spaceport. The Foster + Partners Gateway to Space facility pays homage to the past in its respect for the ancient surrounding landscape while powerfully embracing the future through energy efficiency and sustainability. It was also specifically designed to enable Virgin Galactic to create an unparalleled experience as its customers prepare for journeys of a lifetime before graduating as astronauts.

BOC Aviation reports first half 2019 performance

BOC Aviation has released its unaudited results for the six months ended June 30, 2019. The company has achieved a major milestone in June 2019 as its cumulative net profit after tax (NPAT) exceeded US$4 billion since inception. BOC Aviation reported NPAT of US$321 million in the first half of 2019, an increase of 8% compared with the same period last year.

Revenue rose 13% to US$930 million from US$825 million, and its fleet net book value grew 6% to US$15.9 billion from December 31, 2018, as the company continued to take delivery of modern, fuel efficient aircraft. The 8% rise in the interim dividend declared underpins its continued focus on delivering good long-term returns for its shareholders.


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Advanced Engineering 2019
October 30 - 31, 2019 – NEC, Birmingham, UK

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