Monday, October 7th, 2019

Further blow to U.S. Carriers as Airbus jets hit by “unfair” 10% tariff

As a part of the fifteen-year trade spat between the U.S and Europe, the World Trade Commission has granted Washington the right to impose annual tariffs on US$7.5 billion worth of European goods. The immediate consequence is that U.S. carriers who have had long-standing orders with Airbus for the delivery of passenger jets have just seen the purchase price hiked by 10%.

Many airlines have objected to the fact the levy takes effect immediately and is applicable to existing orders and not simply new orders. However, the levy is not applicable to Airbus jets manufactured at the Mobile, Alabama plant and has not been imposed on aircraft parts, which is a welcome break for independent repair shops which have been suffering from the knock-on effects of the grounding of Boeing’s 737 MAX.

Delta Air Lines and Jet blue had lobbied hard for the levy to apply only to new orders, though the majority of Jet Blue’s order can be met by the Mobile plant. JetBlue spokesman Derek Dombrowski commented: “We are concerned about the detrimental impact aircraft tariffs will have on the ability for low-cost carriers like JetBlue to grow and compete, which will harm customers who rely on us to offer competitive, low fares.”

Delta and United Airlines have the largest orders for the A350 and A330neo wide-body models, which cannot be manufactured in Mobile, with Delta having committed only last week to purchasing 14 new A350s to complement strategic growth of LATAM Airlines Group in Latin America in which it has recently acquired a 20% stake. Other notable names with current Airbus orders include the American Airlines Group, Alaska Air Group and Air Lease Corp. The 10% tariff comes as a major disappointment for Boeing who had been calling for a 100% levy on all Airbus jets.


Jet Aviation opens new Teterboro hangar and renovated FBO

Jet Aviation has officially opened its new 40,000 ft² hangar and completely renovated FBO in Teterboro, NJ.

Built to meet growing demand for long-range business jets, the new hangar can accommodate most large aircraft. The construction is part of Jet Aviation’s efforts to expand and improve its global FBO network of 35 locations. The company is investing heavily to ensure its facilities are designed and equipped to meet all the business aviation needs of its global customers.

Jet Aviation invested more than US$25 million in its Teterboro facility, including a complete renovation of its FBO and construction of a new state-of-the-art, 40,000 ft² hangar — equipped with 30-foot doors — that can accommodate aircraft as large as the Gulfstream 650s.

The FBO incorporates new standard design elements that will ensure customers have a consistent experience when visiting any of the company’s sites worldwide. Guests and crew can relax and enjoy the site’s many amenities, including dedicated passenger and crew lounges, flight planning room, executive conference rooms, business center, health/fitness spa and on-site U.S. customs services.

Air Lease Corporation signs lease agreement with MIAT Mongolian Airlines

Air Lease Corporation has signed a long-term lease agreement with MIAT Mongolian Airlines for one new Boeing 787-9 aircraft.  This aircraft, scheduled to deliver to the airline in Spring 2021 from ALC’s order book with Boeing, will be the first 787-9 to operate in Mongolia as well as the first Dreamliner in MIAT Mongolian Airlines’ fleet. 

MIAT Mongolian Airlines currently operates two Boeing 737 MAX 8 aircraft and one 737-800 aircraft on lease from ALC. 

GA Telesis

Norwegian posts September load factor of 90%

Norwegian carried more than 3.3 million passengers in September. The unit revenue increased for the sixth consecutive month and was up by 6%, compared to the same month the previous year.

A total of 3,310,424 passengers chose to fly with Norwegian in September. The total traffic increased 2%, while capacity growth was 1% and the load factor increased by 1.1 percentage point to 90%.

JetSMART takes delivery of first Airbus A320neo

JetSMART has taken delivery of its first Airbus A320neo aircraft, leased through SMBC Aviation Capital and powered by Pratt & Whitney GTF™ engines.

JetSMART was founded by global private investment fund Indigo Partners, selected the GTF engine to power its order of 85 A320neo family aircraft in June 2019. Pratt & Whitney will also provide JetSMART with engine maintenance through a long-term EngineWise® Comprehensive service agreement. The airline currently operates a fleet of 11 A320ceo family aircraft powered by the V2500® engine.


Leonardo and Olmedo join forces for development of first medical aid of the future

Leonardo and Olmedo, a leading European company for the transformation and preparation of vehicles for healthcare use, have announced the signing of a collaboration agreement aimed at the development of technologies and equipment for rotary-wing and motor vehicles globally that conduct rescue missions. The aim of the agreement is to improve the times and effectiveness of emergency medical interventions carried out in a joint mode through the use of helicopter and ambulances in a seamless environment.

The agreement between Leonardo and Olmedo sees a collaborative approach that will prioritise the creation of an R&D structure comprising of a joint research team. The research team will consider the development and prototyping of new components and universal solutions which will be designed for contemporary and specialist use on both helicopters and ambulances. In addition to data sharing platforms which will enable the real-time interface of the patient's vital signs during the rescue mission: from the place of intervention to the hospital and during transfers.
The project will create important synergies - thanks to Leonardo's historical expertise in the field of air ambulance development (EMS - Emergency Medical Services) and in relation to helicopters for Search and Rescue (SAR) missions in the global and maritime environment, and thanks to the experience of the medical "Ambulance Division" of the Olmedo Group, leader in the sector since 1951 with its wide range and exclusive production.

Finnair continues to grow in Japan

Finnair is adding capacity to Japan with daily flights to Tokyo’s Haneda Airport as of the start of the 2020 summer season, subject to slot availability. The new frequencies to and from Haneda will be in addition to Finnair’s daily flights to Tokyo’s Narita Airport.  

Haneda Airport is conveniently located in the city center of Tokyo. The new flights from Haneda will be codeshare flights with Finnair´s long-term partner, Japan Airlines, which has a wide network of connecting flights from Haneda onwards to other destinations in Japan.

The planned schedule for Finnair´s flight from Haneda is at night time which complements Finnair´s morning flights from Narita, offering more options and flexibility to passengers. The exact
timetable is subject to slot approvals.


AeroCentury takes repossession of all four CRJ-900 aircraft from Adria Airways

AeroCentury, an independent aircraft leasing company released an update on the status of its four CRJ-900 aircraft that were on lease to Adria Airways in Slovenia.

As reported earlier, on September 20, 2019, Adria returned one aircraft to AeroCentury, and on September 23, 2019, the leases for two additional aircraft were terminated, and notice of default was served for the fourth aircraft.  On September 30, 2019, the lease for the fourth aircraft was terminated.  AeroCentury has possession and control of all four aircraft and all have been deregistered from the Slovenian registry.  One aircraft is already located at the Company’s maintenance vendor in the Netherlands and the other three aircraft are being readied for ferry to that location, where all four will be prepared for sale or lease.

Astronics acquires Diagnosys Test Systems

Astronics Corporation, a leading provider of advanced technologies for the global aerospace, defense, and other mission critical industries, has acquired the primary operating subsidiaries from mass transit and defense market test solution provider, Diagnosys Test Systems Limited (Diagnosys). Diagnosys is a developer and manufacturer of comprehensive automated test equipment (ATE) providing test, support, and repair of high value electronics, electro-mechanical, pneumatic and printed circuit boards focused on the global mass transit and defense markets.

Astronics has acquired 100% of the equity of the three primary operating subsidiaries of Diagnosys, which are Diagnosys Holdings, Inc., Diagnosys Ferndown Limited and Diagnosys Electronics (I) Private Limited for US$7 million in cash. The terms of the acquisition allow for a potential earn-out of up to an additional US$13 million over the next three years based on achievement of new order levels of over US$70 million during that period.


Alcoa’s Baie-Comeau Smelter receives certification from Aluminium Stewardship Initiative

Alcoa Corporation, a global leader in bauxite, alumina and aluminum, has reported that the Aluminium Stewardship Initiative (ASI) has certified the Company’s Baie-Comeau aluminum smelter in Québec, Canada.

The three-year certification from ASI represents additional recognition for Alcoa’s leadership in sustainability. Earlier this year, Alcoa announced ASI certifications for three locations that represent the full upstream aluminum value chain. The Company now has locations certified against ASI’s Performance Standard in three countries – Brazil, Canada and Spain.

ASI is a global sustainability certification program for the aluminum industry, representing both upstream producers and downstream manufacturers who use the metal in their products. The certification process includes independent, third-party auditors to verify responsible production, sourcing and stewardship as part of ASI’s standards.


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