Friday, November 22nd, 2019

Chinese airlines look for growth closer to home after three years of industry losses

After three years of an aviation industry operating in the red and losses reaching 21.9 billion yuan (US$3.23 billion) according to China Air Transport Association data, Chinese airlines are now looking to add seats to short-and medium-haul routes to Asian destinations rather than loss-making long-haul routes to North America.

With over 800 current international routes in operation, the majority of the planned additional 105 international routes for the new spring season 2020 are to East Asia and Southeast Asia. According to John Grant, senior analyst at aviation data firm OAG: “Chinese carriers are now taking a more commercial approach to international services. If you could fly an aircraft for four hours and stay profitable compared to a 12-hour sector and not make any money, then you could do that thrice on a daily basis, thus making a better business sense.”

China Eastern has just received approvals to open new routes from the tier-two cities of Qingdao and Chengdu to South Korea’s Cheongju-si and to Osaka in Japan, and will additionally fly Shanghai to Aomori Prefecture in Japan and from Xining to Nagoya in Japan. Loong Air received approval in October to open a new route linking Chengdu with Jakarta.

As demand on North American routes weakens, four Chinese airlines have withdrawn six U.S.-bound flights this year, according to aviation data provider Variflight. Air China has suspended Beijing-Hawaii flights, while Xiamen Airlines has suspended its Xiamen-Shenzhen-Seattle service. In general terms, long-haul flights are usually more lucrative for carriers as there is less competition from low-cost carriers experienced on short-haul routes, which means higher fares can compensate up for higher cost of fuel, bigger planes and bigger crews. However, as state and local government subsidy-backed Chinese airlines chased their market share, they drove down long-haul rates so low that they can now make more money on international routes closer to home.


American adds 20 new routes for summer 2020

American Airlines plans to launch an additional eight new domestic routes this summer, offering customers a total of 20 new seasonal routes in summer 2020. The new routes include service to Martha’s Vineyard (MVY) and Nantucket (ACK) in Massachusetts and new service from Jackson, Mississippi (JAN) and Des Moines, Iowa (DSM), to Miami (MIA), the airline’s gateway to Latin America and the Caribbean.

JAL selects Lufthansa Technik for APU maintenance services

Lufthansa Technik and Japan Airlines (JAL) have signed an agreement on APU (Auxiliary Power Unit) maintenance services for the carrier's Airbus A350 fleet. The five-year contracted services will provide repair and overhaul maintenance with spare support for the APU HGT1700 series.

Currently JAL holds 31 firm orders and 25 options for the state-of-the-art long-range A350 jet.

Royal Aero

ALS confirms selection of Rolls-Royce TotalCare for engine servicing

Rolls-Royce and Kenyan Airline ALS, have signed an agreement for engine maintenance, repair and overhaul services for the Kenyan airline’s fleet of AE3007-powered Embraer ERJ135 and ERJ145 aircraft, up to 10 in total.

The agreement, which is for five years, will see Rolls- Royce provide the Nairobi-based specialist operator with its flagship TotalCare long-term aftercare service solution, which is designed to maximise aircraft availability.

IBA consolidates its presence in North America with new office

IBA Group, the specialist aviation consultancy, has established a representative office in California. The move is a further example of IBA’s ongoing commitment and growing presence in North America, and an example of the continued popularity and demand for aviation investment in the region. Phil Seymour, CEO of IBA, is pleased to welcome Claudio Salazar who joins as Regional Sales Manager, Americas.

Salazar will be responsible for heading commercial business development. His primary focus will be strategic market development of IBA’s digital and data services in North and South America, as well as facilitating growth across IBA’s asset management, appraisal and advisory services divisions.

He joins from aviation and analytics firm CIRIUM, where he spent over six years as a member of the Americas senior sales team with roles in business development across their core product and bespoke aviation advisory services portfolio.


Czech Airlines Technics enters into Base Maintenance Agreement with Austrian Airlines

Czech Airlines Technics (CSAT), a subsidiary of Prague Airport and provider of aircraft repair and maintenance services, has entered into a Base Maintenance Agreement with Austrian Airlines. Under the contract, CSAT will provide Airbus A320 Family base maintenance checks in its facilities at Václav Havel Airport Prague for the carrier effective November 2019.

“At the moment, this new contract includes five base maintenance checks, namely C-checks, of Airbus A320 Family aircraft provided in our hangar in Prague,” says Pavel Hales, Chairman of the Board of Directors and CEO of Czech Airlines Technics. “Czech Airlines Technics has provided Austrian Airlines with its services before and with this new contract, we believe that the co-operation in the base maintenance division will advance even further,” Hales adds.

Alcoa joins International Council on Mining and Metals

Alcoa Corporation, a global leader in bauxite, alumina and aluminum, has been accepted as a member of the International Council on Mining and Metals (ICMM), an organization focused on enhancing the industry’s contribution to society with safe, fair and sustainable practices.

Alcoa is a recognized leader in sustainability, with certifications from the Aluminium Stewardship Initiative and inclusion in the annual Dow Jones Sustainability Indices, where the Company was recently recognized as the aluminum industry leader.

“Our membership in ICMM gives us an opportunity to learn, define and share best-in-class mining practices through a common set of international standards,” said Alcoa President and Chief Executive Officer Roy Harvey. “Alcoa is focused on delivering value through our strategic priorities, which includes a focus on advancing sustainably, and we are working to leverage our extensive experience to win in an evolving marketplace that will demand sustainably and responsibly produced materials.”

SR Technics

Trenchard Aviation Group appoints Martin Longden as VP Interiors

Trenchard Aviation Group, a leading partner in aircraft cabin component design, manufacture, repair and on-wing maintenance, has appointed Martin Longden to the position of VP Interiors.

Longden comes to the business with over 20 years’ aerospace experience spanning MRO and aircraft interiors manufacturing. He has held senior C level roles with an MRO business handling 60 airlines over 20 locations and interiors manufacturing businesses. He has also held accountable manager positions for EASA PT21 G&J as well as PT 145.

Bringing a unique blend of expertise to understanding a customer’s needs and challenges, Longden has extensive experience across soft and hard products within the cabin and has worked with airlines on cabin solutions as well as supplying OEMs.

Vistara selects AMOS as end-to-end MRO software solution

Vistara, a joint venture of TATA and Singapore Airlines, has selected AMOS as its end-to-end MRO software solution for its entire fleet of Airbus and Boeing aircraft. The airline recently inaugurated its international operations and aims to expand into geographies across the world as it inducts new aircraft from Airbus as well as Boeing. The state-of-the-art AMOS software solution supports Vistara's ambitious growth plans.

Vistara’s newly phased-in Boeing B737-800NG aircraft will be directly managed in AMOS. This project has a very special, non-standard set-up in order to efficiently support the airline’s requirements. The implementation will be split into two main phases: Phase one will focus on the B737 fleet into AMOS with a planned go-live as early as autumn 2020. The next phase foresees the transfer of the complete fleet including Airbus and future Boeing 787 Dreamliner into AMOS.


Skyworld Aviation arranges sale of two ERJ 145 LRs to Air Peace

Skyworld Aviation has announced the sale of two FAA registered ERJ 145 LR aircraft to Air Peace of Nigeria. Serial numbers 145379 (5N-BXG) and 145481 (5N-BXF) were delivered in Kingman, Arizona on October 3. The two ERJ's will be joining a fleet of 25 aircraft including narrowbody and widebody-aircraft.

Air Peace is Nigeria, West Africa’s largest operator and the airline has acquired ERJ 145s to increase interconnectivity in Nigeria and West Africa, to specifically serve destinations with little or no service.

Skyworld Aviation acted on behalf of a U.S based regional aircraft sales and leasing firm for whom we have previously arranged a sale of an ERJ 170, two CRJ 700 leases, two further ERJ 145 sales and the sale of an AE3007A engine and APU. This latest transaction further demonstrates Skyworld Aviation’s prominence in the regional jet market, now having concluded approximately 180 jet placements worldwide.


click here to download the latest PDF edition


click here to download the latest PDF edition

click here to subscribe to our other free publications


click here to view in PDF aircraft and engines available for sale and lease


EyeforTravel Revenue Optimization and Marketing Summit
November 26 - 27, 2019 – Hotel Novotel Amsterdam City, Amsterdam, NL

Manufacturing World
February 26 - 18, 2020 – Makuhari Messe, Chiba-city, Japan