Tuesday, May 1st, 2018



FAA Receives Funding for Next Five Years

On a vote of 393-13 the House of Representatives has passed the Federal Aviation Administration (FAA) reauthorization bill which has guaranteed the agency’s funding for the next five years. The legislation has also included provision for directing how disaster funds are spent, though there is no financial allocation via the measure for such programs.
Legislation should reach the Senate floor by May or June and long-term reauthorization should take place by the end of August this year.

According to a Republican aide, in relation to a number of recent disaster and emergency aid packages passed by Congress, for which a lot of funding remains unallocated, this bill would apply to those funds as well as any future disaster funds.
Approximately $4.35 billion per year would be allocated for the FAA in the legislation. A few major FAA programs would receive funding authorizations. An additional US$1 billion would be authorized for an amendment proposed by House Transportation and Infrastructure Committee Chairman Bill Shuster to create a report on the agency's Next Generation Air Transportation System to evaluate air traffic control technology.

The legislation was formally introduced in the House last week, having previously included a measure proposed by Shuster to privatize air traffic control. This was removed from the legislation after Democrats opposed the idea and thus there would be insufficient votes for it to pass.

The Shuster amendment that was included would direct the FAA to report on the agency's Next Generation Air Transportation System (NextGen) to evaluate air traffic control technology and submit the findings to Congress. The NextGen plan to modernize the air transportation system has been described as costly, delayed, and ill-defined.
Shuster said in a statement last week that: "The FAA Reauthorization Act will ensure long-term investment in many of the nation's airports. The bill will also cut the red tape that can bog down our manufacturers and innovators, and allow them to be more competitive and provide more good-paying American jobs."


Air Canada reports first quarter adjusted net loss of CA$52m

Air Canada has posted first quarter 2018 EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) of CA$397m compared to first quarter 2017 EBITDAR of CA$366m.

Air Canada reported an operating loss of CA$14m compared to an operating loss of CA$30m in the first quarter of 2017. The airline reported an adjusted pre-tax loss of CA$72m in the first quarter of 2018 compared to an adjusted pre-tax loss of CA$63m in the prior year's quarter.

On a GAAP basis, in the first quarter of 2018, Air Canada reported a loss before income taxes of CA$18m, which included losses on foreign exchange of CA$112m, compared to a loss before income taxes of CA$13m, which included gains on foreign exchange of CA$70m, in the first quarter of 2017.

Air Canada recorded an adjusted net loss of CA$52m in the first quarter of 2018 compared to an adjusted net loss of CA$63m in first quarter of 2017.

Uzbekistan Airways finalizes order for one 787-8 Dreamliner

Boeing and Uzbekistan Airways, the flag carrier of the Republic of Uzbekistan, have finalized an order for one 787-8 Dreamliner, valued at US$239m at current list prices.

Uzbekistan Airways currently operates two Dreamliners on international routes, including Europe, Southeast Asia, Japan and USA. With this latest order, the carrier will add five more Dreamliners as part of its plan to modernize and expand its fleet.

“Our companies have been partners for over 20 years and these relations only strengthen with time,” said Gennadiy Kharlap, Deputy General Director of Uzbekistan Airways. “The agreement for an additional Boeing 787-8 Dreamliner supports our development strategy focused on modernization and expansion of the airline's fleet and network, and marks another great milestone in our long-term cooperation.”


Leonardo and the Australian Ministry of Defence to establish local helicopter transmission repair and overhaul facility

Leonardo and the Australian Ministry of Defence have agreed to establish a helicopter transmission repair and overhaul facility in Melbourne, capable of servicing MRH Taipan, foreign NH90 and certain civil helicopter main gear boxes.

Planned to be set up into an existing facility of Leonardo and to commence operation in mid-2020, the centre will employ at least 12 technical staff for 30 years or more.

The Federal Government is investing around AU$16m in the facility. The investment will be repaid through reduced MRH Taipan sustainment costs over the remaining life of the helicopter fleet. A similar amount is also being provided by Leonardo.

WestJet launches inaugural Halifax/Gatwick flight

WestJet has officially launched its route between Halifax and London (Gatwick). The departure of WS24 marks the start of daily, nonstop service between Halifax Stanfield International Airport and Gatwick Airport until October 26, 2018.

This is the first time the airline has used its newest aircraft, the Boeing 737-8 MAX for transatlantic travel. "WestJet's addition of this direct route represents another link to the UK and connections throughout Europe, important markets for Nova Scotia," said Geoff MacLellan, Minister of Business and Tourism Nova Scotia. "This route will help further connect our people, cultures and businesses, making it even easier for UK tourists to visit our province."


IAI opens new office in Germany to support the growing European operations

Israel Aerospace Industries (IAI) has opened a new office in Germany to support its growing business in the European market.

The location for the new office, in Berlin, was chosen due to Germany’s central role in Europe and its strong alliance with Israel. It replaces IAI’s former office in Paris. IAI regards Germany as a key European market and as a platform for co-development of defense and aeronautics technologies.

Ethiopian Airlines signs purchase agreement for 10 firm Q400 aircraft

Bombardier Commercial Aircraft has concluded a firm order for 10 new Q400 aircraft with Ethiopian Airlines.

The order also includes purchase rights for five additional Q400 aircraft. Based on the list price of the Q400 aircraft, the firm order is valued at approximately US$332m.

The Q400 aircraft is the most recent development in the Q Series family of aircraft. In addition to the standard single-class configuration, Q400 aircraft are available with an optional dual-class interior for enhanced passenger comfort; in an optional extra-capacity configuration offering up to 90 seats for higher-density markets; and in a cargo-passenger combi configuration.

STG Aerospace appoints Ruth Williams as Head of Marketing

Ruth Williams has joined ST Aerospace as Head of Marketing. She will have a key role to play in developing and implementing a brand strategy aimed at raising global awareness of the company’s aircraft cabin lighting solutions and increasing market share across its entire photoluminescent and LED product range.

Having previously held positions as Director of Marketing at Restore Digital and Head of Corporate Communications at PHS Group, Williams is highly skilled in all aspects of integrated B2B marketing and corporate communications, including social media and public relations.


Air Transat leases second Airbus A321 aircraft from AviaAM Leasing

AviaAM Leasing has announced the delivery of an Airbus A321-211 to the Canadian carrier Air Transat. The aircraft will supplement an Airbus A321 which was delivered by AviaAM Leasing last month.

The Aircraft was delivered to the client at Kaunas, Lithuania on April 27, fresh from C-check. The aircraft is joining Air Transat’s fleet under a 10-year operating lease agreement. AviaAM Leasing is pleased to be able to work with the Canadian carrier and anticipates expending the relationship with joint projects in the future.

Vietnam Airlines renews distribution agreement with Sabre

Sabre Corporation has announced a renewed, long-term distribution agreement with Vietnam Airlines. Under this agreement, Vietnam Airlines’ content will continue to be distributed through Sabre’s global travel marketplace, further supporting its growth objectives.

“This renewed partnership with Vietnam’s national carrier helps to strengthen the brand as they continue to expand globally and implement an ambitious business plan,” Rakesh Narayanan, vice president, air line of business, Sabre Travel Network Asia Pacific.

According to official forecasts made by the Vietnam National Administration of Tourism, arrival numbers should increase from 17 million to 20 million visitors by 2020. As Vietnam faces aggressive domestic and international consumer demand, convenient access to Vietnam Airlines’ content will become increasingly important to meet their objective, which is to become one of the largest airlines in the region by 2024.



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Technical Aspects of a Leased Asset 2018
June 5, 2018 – Jury’s Inn Hotel, Prague

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