Friday, October 18th, 2019

Sabre buys Radixx in US$110 million deal

Sabre Corporation, the travel technology company based in Southlake, Texas has announced its acquisition of Radixx, the Orlando, Florida-based technology provider to low-cost and retail-focused airlines.

Radix was founded in 1993 to leverage the technology industry’s fast-paced advancements, focusing on cloud-based solutions that could be rapidly deployed by airlines. With low-cost carriers holding a 30% share of annual boarded global passengers, this sector of the commercial airline industry has expanded twice as fast as full-service airlines. Products that Radixx is renowned for include a low-cost carrier passenger service system and an internet booking engine.

“By combining Radixx technology and expansive low-cost carrier customer base with Sabre’s expertise, scale and global service capabilities, this acquisition will result in a better alternative for low cost carriers that might have otherwise felt their PSS and other technology options were limited,” said Sean Menke, chief executive officer of Sabre. “This acquisition also allows Sabre to quickly expand its footprint both geographically and in terms of scope of service with an important and rapidly growing segment of the airline industry.”

Radixx supports all airline business models with its industry leading travel e-commerce platform and has a diverse customer base in key low-cost carrier markets within Europe, South America, Asia Pacific and Africa. The company uses proven technology and unique partnership models in order to create innovative solutions which deliver omni-channel merchandising and a quality traveler experience for its customers while also offering unique merchandising capabilities, natively built into the passenger system, enabling airlines to maximize their ancillary revenue.

TP Aerospace

Czech Airlines Technics finalises cabin modification for Finnair

Czech Airlines Technics (CSAT) has successfully completed a two-year cabin modification and Wi-Fi network installation project for Finnair’s Airbus narrow-body aircraft. Finnair is one of CSAT’s long-term Base Maintenance division clients.

Throughout the course of the project, CSAT employees completed the cabin modification and connectivity installation on altogether 24 Finnair aircraft in Hangar F at Václav Havel Airport Prague. As a result, all aircraft have new cabin configurations and layout and Finnair customers can access internet and Finnair’s complimentary on board Nordic Sky Portal during the flight. This was the industry’s first connectivity retrofit with the aircraft manufacturer, Airbus.

Alcoa posts third quarter net loss of US$221 million

Alcoa has reported a net loss of US$221 million for the third quarter 2019, compared with a net loss of US$402 million in the second quarter of 2019.

The results include US$139 million of special items, including US$134 million in charges associated with the divestiture of the Avilés and La Coruña facilities in Spain, and a US$37 million restructuring charge for severance costs related to implementing a new operating model. The charges related to those two items were partially offset by a net benefit of US$32 million in other special items.

The Company anticipates the majority of the restructuring costs associated with the new operating model will be paid in cash in the fourth quarter 2019 with the remainder in the first quarter 2020. The new operating model is expected to result in annual savings of approximately US$60 million in operating costs beginning in the second quarter of 2020.

Excluding the impact of special items, third quarter 2019 adjusted net loss was US$82 million compared with a second quarter 2019 adjusted net loss of US$2 million.

In the third quarter, Alcoa reported adjusted EBITDA excluding special items of US$388 million, down US$67 million from the prior quarter, primarily due to lower alumina pricing that was partially offset by higher alumina sales volume and lower production costs.

Alcoa reported third quarter revenue of US$2.6 billion, down 5% sequentially due primarily to lower alumina prices.

Alcoa ended the quarter with cash on hand of US$841 million and debt of US$1.8 billion, for net debt of US$965 million.

SR Technics

Inflite MRO Services wins Spairliners contract for Embraer E-Jet component repair work

Inflite MRO-Services, part of the Inflite Group, has secured a new, long-term contract with Spairliners GmbH, the Lufthansa Technik/Air France Industries KLM Engineering & Maintenance JV business, to handle component repair work on the Embraer E-Jet 170 and 190 airliners. The contract was signed at MRO Europe, in London.

When work is set to commence in 2020, Inflite will be supporting a wide range of E-Jet rotable components for Spairliners’ E-Jet customers, including difficult to transport and hazardous items. Work will be carried out at its dedicated components workshops at London Southend Airport.

Inflite MRO Services has been increasingly active supporting E-Jet family components, supporting several customers ad hoc, including Flybe. It is a major shift for the business, which built its reputation as a specialist BAe 146 support centre. With more BAe 146s moving overseas, Inflite has moved into more modern types, including the Airbus A320 and B737.

Spatial to manufacture Water Evacuation Trainer for Singapore Airlines

Spatial, a provider of cabin crew training simulators, is to manufacture a Water Evacuation Trainer for Singapore Airlines.

With a B787 fuselage, the trainer will provide Singapore Airlines’ cabin crew with the highest possible training standards in all Safety and Emergency Procedures (SEPs). Training will include door operation, cabin communications and aircraft systems familiarisation, secure cockpit procedures, emergency equipment usage and evacuation, fire and smoke training, including evacuation directly into the adjacent pool. Simulated malfunctions and maintenance will be operated via an easy-to-use touchscreen Instructor Operator Station (IOS).

To provide comprehensive training for a wide variety of different door types, the trainer will include replica B787, A350 and A380 doors and refurbished B737 and B777 doors. Visual systems will be installed on all doors and synchronised with training scenarios to ensure a highly realistic training environment.


LCI launches first helicopter co-investment vehicle

Helicopter lessor LCI, the aviation division of the Libra Group, has launched its first helicopter co-investment vehicle.

The new helicopter ownership vehicle contains five aircraft all on long-term lease – three Leonardo AW139 and two Sikorsky S-92 units – and is valued at over US$100 million. It has been launched in partnership with Flexam Tangible Asset Income Fund (part of Flexam Invest Group), who have also contributed to the capitalisation. LCI will also act as servicer for the vehicle.

LCI first entered the helicopter leasing marketplace in 2012 with a US$400 million order for a fleet of Leonardo AW139, AW169 and AW189 aircraft. Since that time, it has developed a proven leasing platform which today is renowned for the ownership, management and servicing of a fleet approaching 100 aircraft.

These are in operation across four continents in multiple sectors including offshore wind, emergency medical services, search and rescue, maritime pilot transfer and offshore oil and gas.

Turkish Technic and Satair sign strategic General Terms Agreement

Turkish Technic and Satair have signed a strategic General Terms Agreement (GTA) to facilitate further business growth between the two entities. Under this agreement, Satair will support Turkish Technic with consumable and expendable spares (C&E) for the expanding Airbus aircraft fleet that is maintained by Turkish Technic.

This unique agreement supports both Airbus standard hardware supplied from the Airbus warehouses in Hamburg and C&E material from Satair’s global warehouses. This marks an important entry of Standard Hardware to the already established transactions of C&E material between the entities.

With this tailor-made GTA, aircraft part numbers can be added and removed from the GTA in a dynamic manner to reflect real-time planning and forecast input. The flexibility of the GTA provides a customised and unique platform to add products and Stock Keeping Units to the GTA while still allowing the general Terms & Conditions to remain in force. This helps both parties to maintain
a very high degree of flexibility while securing a good service level from Satair towards Turkish Technic.

Beach Aviation Group

Eaton signs agreement with OEMServices to expand MRO business in Russia

Power management company Eaton will provide maintenance, repair and overhaul services for components on Airbus and Boeing aircraft as part of a long-term agreement with OEMServices. The growth opportunity will expand Eaton’s high-quality, cost-effective MRO services into new airline markets in Russia to benefit A320, A330, A340, B777 and B787 operators.

As part of this long-term agreement, Eaton will perform repair services on a broad portfolio of air frame fuel and hydraulic components, engine fuel and sensing products, and electrical actuation products.

GECAS and IAI launch 777-300ERSF freighter program

GECAS and Israel Aerospace Industries (IAI) have launched the Boeing 777-300ERSF and the establishment of a passenger to freighter conversion program. Dubbed “The Big Twin” — denoting its status as the largest ever twin-engined freighter — the initiative is jointly funded by GECAS and IAI.

With agreements signed in July 2019 and a prototype aircraft to be provided by GECAS, the 777-300ERSF Supplemental Type Certificate (STC) Development Program has now been launched.

As launch customer and co-funder of the program, GECAS will commit fifteen firm orders and has fifteen additional options for the 777-300ERSF from GECAS’ owned portfolio to the Program (including the prototype aircraft). The conversion of initial aircraft is expected to take place in Tel
Aviv with further conversion lines contemplated in other locations outside of Israel from 2023. The Program will also see IAI enter into conversion agreements for the 777-300ERSF directly with airlines as well as other lessors around the world.

The 777-300ERSF STC development and prototype conversion is estimated to take over three years from the start of the program to achieving CAAI/FAA STC Approval, while subsequent aircraft will average four to five months to convert.


United Airlines reports third quarter net income of US$1.0 billion, raises full year 2019 guidance

United Airlines (UAL) has achieved third quarter diluted earnings per share (EPS) of US$3.99 and adjusted diluted EPS of US$4.07, and raised its full year 2019 adjusted diluted EPS guidance, with a new range of US$11.25 to US$12.25.

United has reported third quarter net income of US$1.0 billion, pre-tax earnings of US1.3 billion and pre-tax margin of 11.9%, expanding pre-tax margin 2.3 points versus the third quarter of 2018.

Third quarter adjusted net income was US$1.0 billion, adjusted diluted EPS of US$4.07, adjusted pre-tax earnings of US$1.4 billion and adjusted pre-tax margin of 12.1%, expanding adjusted pre-tax margin 2.5 points versus the third quarter of 2018.

Consolidated third quarter passenger revenue per available seat mile (PRASM) increased 1.7% year-over-year. Consolidated third quarter unit cost per available seat mile (CASM) decreased 0.9% year-over-year. Consolidated third quarter CASM, excluding special charges, third party business expenses, fuel and profit sharing, increased 2.1% year-over-year.

Embraer approves Jet Flight Service to expand support of Legacy 600/650 in Moscow, Russia

Jet Flight Service, based at Vnukovo International Airport, has been approved as an Embraer Authorized Service Center (EASC) to expand its support for Legacy 600/650 customers in Moscow, Russia.

Jet Flight Service, which is certified by the European Union Aviation Safety Agency (EASA), may perform scheduled and non-scheduled maintenance, component and part exchange, types of inspections at different levels of complexity for those aircraft platforms.


STS Aviation Group purchases former MAEL hangar in Birmingham, England

Two weeks after acquiring Apple Aviation,  STS Aviation Group (STS), an aviation solutions company, has finalized the purchase of a wide-body aircraft maintenance facility in Birmingham, England.

The facility was formerly operated by Monarch Aircraft Engineering (MAEL) and put up for sale in March of 2019. It features 200,000 ft² of total space -- including ramp -- and has the capacity to service wide-body aircraft. In fact, the facility can house two wide-body aircraft or 10 narrow body aircraft at the same time. In addition to its size, the complex is home to several on-site component repair and back shops; making it true nose-to-tail MRO service facility flush with vertical lift storage devices, a global reporting room and dozens of laptop mobility hubs.

Ryanair launches new routes to Armenia from 2020

Ryanair will launch its first ever flights from Armenia, the 40th country in the Ryanair network, with two new routes from Yerevan to Milan Bergamo and Rome Ciampino starting in January 2020, and two new routes from Yerevan to Berlin Schönefeld and Gyumri to Memmingen starting in Summer 2020. Ryanair’s 2020 schedule will deliver 130,000 customers annually to/from Ryanair’s Armenian airports.


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