Monday, November 4th, 2019

IAG to acquire Air Europa for €1 billion

International Consolidated Airlines Group (IAG) and Globalia have signed a definitive transaction agreement under which IAG’s wholly owned subsidiary, IB OPCO Holding S.L. (Iberia), has agreed to acquire the entire issued share capital of Air Europa (Air Europa) for €1 billion to be satisfied in cash at Completion and subject to a closing accounts adjustment.

Air Europa, based on Mallorca, Spain, is one of the leading private airlines in Spain, operating scheduled domestic and international flights to 69 destinations, including European and long-haul routes to Latin America, the United States of America, the Caribbean and North Africa. In 2018, Air Europa generated revenue of €2.1 billion and an operating profit of €100 million. It carried 11.8 million passengers in 2018 and ended the year with a fleet of 66 aircraft.

The Air Europa brand will initially be retained and the company will remain as a standalone profit centre within Iberia run by Iberia CEO Luis Gallego. The managements of IAG and Iberia anticipate opportunities to unlock value through the acquisition across three key areas: integrating Air Europa into the existing Iberia hub structure at Madrid, creating commercial links between Air Europa and other IAG operating companies, in addition to inclusion into IAG’s joint businesses and integrating Air Europa onto the IAG platform of common services.

GA Telesis

Cebu Pacific finalises order for 16 A330neo

Cebu Pacific (CEB), based in the Philippines, has signed a firm order with Airbus for 16 long-range A330neo aircraft. The order firms up the wide-body portion of a previously announced Memorandum of Understanding (MoU), which also includes commitments for 10 A321XLR and five A320neo single-aisle aircraft.

The A330neo ordered by Cebu Pacific is a higher-capacity version of the A330-900, with up to 460 seats in a single-class configuration. Cebu Pacific plans to operate the aircraft on trunk routes within the Philippines and the rest of Asia, as well as on longer range services to Australia and the Middle East.

NAC delivers one ATR 72-500 to Loganair on lease

Nordic Aviation Capital (NAC) has delivered one ATR 72-500, MSN 570, to Loganair on lease.  Prior to delivery, the aircraft has been converted to freighter configuration by NAC, providing Loganair with a 75m3 cubic capacity / 7.5t payload aircraft to operate on behalf of one of its major customers.

This represents the first ATR aircraft to join Loganair’s fleet.


Liebherr-Aerospace to provide pneumatic valves for new Rolls-Royce business jet engine

Liebherr-Aerospace has been selected to supply the pneumatic component package for Rolls-Royce’s next-generation business jet engine Pearl 700: Both the pneumatic valves and the actuation devices that control pneumatic power around the engine have been designed, are manufactured and serviced by Liebherr-Aerospace Toulouse SAS, Toulouse (France).

Liebherr-Aerospace Toulouse SAS provides Rolls-Royce with lightweight, high-reliability valves and actuation devices that match the requirements of the Pearl 700 engine program, the most powerful in the Rolls-Royce business jet propulsion portfolio. The Pearl 700 is the latest member of Rolls-Royce’s Pearl® engine family and the exclusive power plant for the new Gulfstream G700.

The new contract is another important step in the relationship between Rolls-Royce and Liebherr-Aerospace: In 2015, both companies established a 50:50 joint venture called Aerospace
Transmission Technologies GmbH. It is based in Friedrichshafen (Germany) and develops
manufacturing capability and capacity for the power gearbox for Rolls-Royce’s new UltraFan™ engine.

In addition, the engine manufacturer has selected Liebherr-Aerospace to supply a pneumatic valve
for the Trent 7000 engine.

West Star Aviation announces first aft canted bulkhead modification

West Star has announced its first Aft Canted Bulkhead Modification for a Citation 680 at its East Alton (ALN) facility. Textron Aviation's Mandatory Service Bulletin (SB680-53-08R2) for the Aft Canted Bulkhead Modification is applicable to both Sovereign (680 S/N 1-349) and Sovereign Plus (680-S/N 500-531). For aircraft with 7000 or more flight hours at the time of receipt, this service bulletin must be accomplished within 1800 flight hours or 24 months, whichever occurs first, from the date of receipt.

The SB680-53-08R2 is a mandatory modification that involves removal of the APU, associated heat shield and containment structures. The Aft Canted Bulkhead is modified by adding structural pieces to reinforce the bonded assembly to prevent potential de-bonding of the vertical and horizontal stiffeners. This modification is being completed at West Star's ALN facility along with the customer's routine inspection event to minimize downtime.


Qantas finds structural pickle fork cracks in three 737 NG jets – now grounded for repairs

Qantas has discovered structural cracks in the pickle forks of three of its Boeing 737NGs after a problem was found with the first jet, which had registered just under 27,000 flight cycles, during earlier-than-scheduled heavy maintenance.

All three out of 33 jets which were subsequently inspected have now been grounded until essential repairs can be carried out. The likely cost is estimated to be around US$275,000 per aircraft and the jets should be back in service by the end of the year.

Australia’s flag-carrying airline has advised travelers that despite the three jets being out of commission, this will not affect normal services. Boeing alerted the FAA to the potential problem after cracks in pickle forks were discovered in a number of 737NG passenger jets which were being converted to freighters and which had completed well in excess of 30,000 flight cycles. As a consequence, the FAA issued a directive advising that all 737NG jets with more than 30,000 flight cycles should be inspected immediately, while those with between 22,600 and 30,000 flight cycles should be inspected over the coming months or as soon as they had reached the 30,000-flight mark.

Structural cracks have been found in 737NGs owned by Southwest Airlines Co, Brazil’s Gol Linhas Aereas Inteligentes SA, Korean Air Lines Co and Indonesia’s Sriwijaya Air. Boeing have been keen to point out that so far, only 5% of the over 1,000 737NGs in operation have been found to have structural cracks in them.

The Av8 Group expands overhaul shop and office headquarters in Houston, TX

The Av8 Group has substantially expanded its primary overhaul shop and office headquarters in Houston, TX to accommodate its growing capabilities as part of an increased effort to deliver more value to its customers. The company added an additional 9,000 ft² to its overhaul shop and office space, bringing the total footprint to 30,000 ft².

The expansion comes just as the company has added major capabilities to its growing focus on component overhaul. The addition of a Servo Test Stand, that can measure data in milliseconds, will allow the company to begin to overhaul servos and valves contained in many assemblies such as anti-skid control valves and more.

The Av8 Group also recently acquired a dedicated Actuator Test Stand. The equipment increases the company's already well-established overhaul capability for mechanical and hydraulic components such as flap/stabilizer screw jacks and leading edge actuators.

These additional testing capabilities will allow the company to overhaul a larger variety of assemblies and systems. The Av8 Group is in a unique position by holding an FAA PMA (Parts Manufacturer Approval) and an extensive on-staff engineering department, including a dedicated DER.


Vietjet orders A321XLR aircraft

Vietnamese carrier Vietjet will add the A321XLR to its fleet, with a firm order for 15 aircraft and the conversion of five A321neo aircraft from its existing backlog.

The airline also signed a new training agreement with Airbus Services. This will see Airbus position two new A320 Family full flight simulators at the carrier’s training centre in Ho Chi Minh City. Airbus will also provide a range of training services to the airline and its instructors.

Vietjet will be among the first airlines to receive the A321XLR. The addition of the aircraft to its fleet will allow Vietjet to further expand its network, flying longer routes across Asia, as well as to
destinations as far afield as Australia and Russia.

GA Telesis Istanbul earns AS9120 certification and ASA-100 accreditation

GA Telesis Istanbul has received AS9120 Certification and ASA–100 Accreditation. Since inception, GA Telesis has been committed to exceeding the industry’s standards of operational quality for the distribution of aviation components. The Company continues to set the high-bar for the sector by creating key performance indicators, to ensure execution of maximum quality levels.

Component Control

TrueNoord adds US$360 million financing facility to support further portfolio growth

:TrueNoord has closed a new revolving warehouse finance facility of US$360 million with an uncommitted US$150 million accordion feature. This will be used by the specialist regional aircraft lessor to finance business development and expand its portfolio of 50-150 seat aircraft which includes regional jets and turboprops from Embraer, ATR and deHavilland Canada.

The new facility is underwritten by Citibank, Société Générale Corporate & Investment Banking and Royal Bank of Canada – and it supports TrueNoord’s targeted growth strategy which is endorsed by its cornerstone investors Bregal Freshstream, BlackRock and Aberdeen Standard. Citibank will act as agent and security trustee under the facility. Legal advisers Milbank acted for TrueNoord and Clifford Chance represented the banks.

Beach Aviation

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