Wednesday, August 21st, 2019

Allegiant to open new aircraft base in Lehigh Valley

Allegiant Travel Company announced plans to establish a two-aircraft base at Lehigh Valley International Airport (ABE) in Lehigh County, Pennsylvania. Allegiant's growth plans in the state include creating at least 66 new, high-wage jobs.

The Las Vegas-based company is investing US$50 million to establish its new base of operations, which will house two Airbus aircraft. The company, which focuses on linking travelers in small-to-medium cities to world-class leisure destinations, plans to begin its base operations at Lehigh Valley International Airport on February 12, 2020. Lehigh Valley will become the airline's 18th aircraft base.

Allegiant, which employs more than 4,300 team members across the U.S., plans to immediately begin hiring pilots, flight attendants, mechanics and ground personnel to support the operations.


Ongoing 737 MAX crisis forces Southwest to cancel 20 non-stop routes

Southwest Airlines has been forced to drop 20 non-stop routes from its schedule, beginning January 2020. The American carrier has identified 20 “weaker-than-expected”, non-stop services and will
use some of those aircraft to provide additional capacity on new routes, particularly to Hawaii, a market it has recently heavily targeted. Currently 9% of Southwest’s fleet is made up of 737 MAX aircraft, the 34 planes having remained idle since being parked up at Victorville, California. These planes comprise part of an order for 260 of the aircraft, delivery of which also stopped at the same time owing to the worldwide grounding of the jet after two recent fatal crashes. Southwest is one of the largest 737 MAX operators and has therefore been harder hit by the jet’s grounding. According to OAG, a leading provider of digital flight information, Southwest has dropped three million seats from its regular schedule since the 737 MAX was grounded, which equates to approximately 180 flights per day.

The following is a list of most of the non-stop services that will be cancelled in January 2020, though Southwest has confirmed that these routes will still be covered by a one-stop service:
  • Los Angeles-Cancun
  • Los Angeles-Puerto Vallarta
  • Los Angeles-Omaha
  • Los Angeles-Pittsburgh
  • Boston-Atlanta
  • Boston-Kansas City
  • Boston-Milwaukee
  • Dallas Love Field-Oklahoma City
  • Dallas Love Field-Jacksonville
  • Dallas Love Field-San Francisco
  • Orlando, Florida-Oakland
  • Orlando-San Jose
  • Orlando-Sacramento
  • Fort Lauderdale, Florida-Jacksonville
  • New York (LGA)-Orlando
  • Columbus-Oakland
  • Austin-San Francisco

Transat continues to back Air Canada bid

Transat A.T. has repeated its recommendation that shareholders should support a takeover offer for the company by Air Canada, following Pierre Karl Peladeau's hint that he may make an offer. Peladeau is a Canadian businessman and former politician.

The travel company stated that it has never received an offer from Peladeau nor from any of his business associates hoping to acquire Transat.

On Friday, August 23, Transat shareholders are expected to vote on Air Canada’s offer of CA$18 per share, the company states that there is no current alternative transaction on the table.

Peladeau, who owns about a 1.6% stake in Air Transat’s parent company, plans to vote against the Air Canada bid because it is “contrary to the public interest.”

Contrail achieves record operating results for fiscal year 2019

Contrail Aviation Support, a commercial aircraft trading, leasing and parts solutions provider worldwide, was recognized as the primary driver of its parent company’s commercial aircraft, engines and parts business segment revenue of US$94 million in fiscal year 2019.

According to its recent 10K filing , Air T Commercial Aircraft, Engines and Parts Segment, contributed US$94 million of revenues in its fiscal-year ended March 31, 2019, compared to US$29.5 million in its prior fiscal year, an increase of 218%. Overall, fiscal year 2019 revenues for Air T, were US$250 million, a 28% increase over its prior fiscal year. The primary driver of the Segment’s increase in revenues was Contrails record levels of sales, driven in part by the sales of nine engines totaling US$41.0 million.


TBD appoints Huw Leonard as new head of Operations

TBD, renowned for ground support equipment and specialist access solutions for the global aviation industry, has appointed Huw Leonard to the senior position of Operations Manager (Director designate).

Huw Leonard has joined the Company to apply his technical expertise within the aviation manufacturing environment and he will spearhead continuous improvement strategies within the fast-growing UK business to meet rising global demand.

Leonard’s career has served top tier automotive, aerospace, rail and telecommunications companies as well as military and defence solutions. He has strong experience running plants with ISO9001, 14001 & 18001 accreditations.  Most recently he was UK MD / Plant Manager for EnerSys Ltd, a U.S. company with a manufacturing base in Newport, South Wales, supplying high end batteries to a wide-ranging global customer base. 

British Airways closer to powering future fleet with sustainable jet fuel

British Airways is one step closer to powering its future fleet with sustainable jet fuel made from rubbish. Plans have been submitted to develop Europe’s first household and commercial solid-waste to sustainable-fuels plant.

Altalto Immingham, a subsidiary of renewable fuels company Velocys and a collaborator with British Airways and Shell, has submitted a planning application to develop the site in Immingham, North East Lincolnshire, close to the Humber Estuary.

The proposed state-of-the-art plant would take over half-a-million tonnes of non-recyclable everyday household and commercial solid waste each year, destined for landfills or incineration. This waste includes meal packaging, nappies and takeaway coffee cups, which are converted into cleaner burning, sustainable aviation fuel.

The technology, built by Velocys, will reduce greenhouse gas emissions by 70%. For every tonne of conventional fossil fuel replaced by sustainable jet fuel is the equivalent of taking up to 40,000 cars off the road each year.

British Airways intends to purchase jet fuel produced at the plant for use in its aircraft. This is an important step in the reduction of the airline’s carbon emissions towards the industry targets of carbon neutral growth from 2020 and a 50% reduction by 2050 from 2005 levels.

The fuel will also improve air quality, with up to 90% reduction in soot from aircraft engine exhausts and a reduction of almost 100% in sulphur oxides. The technology will also offer a lower emissions route to process UK waste, compared to landfills or incineration.


Comlux achieves IS-BAO stage 3 aircraft management operations

Comlux Malta has been awarded the Certificate of Registration to the International Standard for Business Aircraft Operations (IS-BAO) Stage 3 by the International Business Aviation Council (IBAC).

The approval confirms that the Safety Management System (SMS) is fully integrated into Comlux Aviation’s aircraft management operations and that the company maintains the highest standards of safety and security in the aviation industry.

Comlux is one of the leaders in Business Aviation, Transaction, and Completion services.

Av8 Group names Jeff Favati as new Sales Manager

The Av8 Group is states that it is expanding their sales team with the addition of Jeff Favati as the new Sales Manager. Favati will be responsible for sales and business development across all segments of Av8's markets.

Jeff has over 25 years of experience in the aviation industry. His background includes a variety of expertise in MRO and part sales, operations and component repairs management, along with airline operations.

"We are excited to be expanding our sales team with Jeff, his many years of aviation experience and expertise will assist with our continued growth," said Yoel Arnoni, CEO, The Av8 Group.

Located in Houston, Texas, Av8 Group, an FAA and EASA Authorized Repair Station and FAA PMA
authority, combines three distinct subsidiary units: Av8 MRO, Av8 PMA and Av8 AOG.

GA Telesis

Asiana Airlines signs component contract with Lufthansa Technik

Asiana Airlines has signed a comprehensive component support contract with Lufthansa Technik. Under the terms of the new agreement, Lufthansa Technik will provide Total Component Support (TCS®) for the entire Asiana Airlines fleet of Airbus A320 family aircraft, including the A321neo version joining the fleet in the future. Started in July 2019, the contract has a duration of ten years and covers a maximum of 79 aircraft.

The contract holds provisions for being converted from an integrated Total Component Support (TCS®) agreement, including pooling to a Total Component Maintenance (TCM), closed-loop component repair and overhaul support in the mid-term.

Lufthansa Technik and Asiana Airlines have been working together for more than 25 years. Lufthansa Technik also provides component maintenance for the Asiana Boeing 777-200ER fleet, an integrated Total Component Support for the airline's Airbus A320, A330 and A350 fleets, as well as V2500 and CF6 engine support, a heavy maintenance for the carrier's Airbus A380 fleet.

Struggling Norwegian Air sells stake in NOFI to boost cash holdings

The loss-making carrier Norwegian Air has agreed to sell its 17.5% stake in Norwegian Finans Holding (NOFI) for 2.2 billion kroner, a move which saw its share price jump 5.8%. The stake is being sold to Cidron Xingu Limited, which is indirectly controlled by Nordic Capital Fund IX and Sampo, a leading Finnish financial services group. The deal includes Bank Norwegian, a credit card company set up and owned by Norwegian Air. The Scandinavian carrier has struggled to turn a profit for some time owing predominantly to overcapacity and also the grounding of its 18 Boeing 737 MAX jets. The sale will see its cash holdings increase to 934 million kroner and provide an accounting gain of 196 million kroner.

"The sale of the NOFI shares is part of Norwegian's strategy to strengthen our core airline operations and focus on the transition from growth to profitability," Norwegian Air's acting Chief Executive Geir Karlsen said in a statement. Though the sale may help the airline refinance a €250 million (US$305.25) bond maturing in December, it is possible Norwegian Air may need to raise more cash from shareholders at a later date. Market analysts Bernstein commented in a research note that: "Without an ongoing sustained improvement in the unit revenue position or unit cost position of the business, we struggle to see how the company can get through the next nine months without needing to return to capital markets for additional equity.” (US$1.00 =8.97 kroner (NOK).)

Magellan Group

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