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Thursday, January 27th, 2022

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Massive 787 Dreamliner charge sees Boeing posts third consecutive heavy annual loss

Having only just finished weathering the 737 MAX storm which cost Boeing Co. an estimated US$21 billion in documented costs plus the cancellation of over 1,000 orders, the North American planemaker has been hit a further financial blow, this time relating to its 787 Dreamliner and continued quality control issues.

Having delivered only 21 of the jets in 2021 and none since June of last year, Boeing has had to pay US$3.5 billion in compensation to customers, while the delays have increased the cost of production by US$2 billion. As a consequence, Boeing has taken nearly US$4 billion in charges directly related to the 787 Dreamliner, resulting in the company posting a net loss of US$4.3 billion for the financial year 2021. The result is an improvement of the previous year’s loss of US$11.9 billion, but far worse than analysts had predicted.

The situation has snot been helped by the fact the 787 Dreamliner was designed for the long-haul market and international travel is expected to be the last sector of the industry to recover from the negative effects of the COVID-19 pandemic. Having sold 119 787 Dreamliners in 2019, Boeing managed just 21 orders throughout 2021. "We are taking the time now to ensure we're positioned well as widebody demand recovers," said Boeing CEO Dave Calhoun in his memo to employees.

The good news is that the company had a positive cash flow for the last quarter of 2021, the first time since the first quarter of 2019 when the problems with the 737 MAX began. "We have been focused relentlessly on improving our free cash flow situation" Calhoun told investors on a conference call Wednesday. "It has been our #1 metric. And to be able to achieve that, I think, is terrific news." Boeing shares dropped nearly 4% in Wednesday morning trading on the results. (£1.00 = US$1.35 at time of publication).


Boom Supersonic selects Greensboro, North Carolina for first Supersonic Airliner manufacturing facility

Boom Supersonic, the company building the supersonic airliner, has selected the Piedmont Triad International Airport in Greensboro, North Carolina as the site of its first full-scale manufacturing facility.

The Overture Superfactory will be a state-of-the-art manufacturing facility, including the final assembly line, test facility and customer delivery centre for the Overture supersonic airliner. Carrying 65 to 88 passengers, Overture is capable of flying on 100% sustainable aviation fuel (SAF) at twice the speed of today's fastest passenger jets.

"Selecting the site for Overture manufacturing is a significant step forward in bringing sustainable supersonic air travel to passengers and airlines," said Blake Scholl, founder and CEO of Boom Supersonic. "With some of the country's best and brightest aviation talent, key suppliers, and the state of North Carolina's continued support, Boom is confident that Greensboro will emerge as the world's supersonic manufacturing hub."

North Carolina offers Boom an optimal location for its manufacturing facility thanks to its strong aerospace workforce, which includes a large number of US military veterans. North Carolina also affords good access to technical schools, providing Boom with a pipeline of skilled labor. The Piedmont Triad area is in close proximity to many tier-one aerospace suppliers, benefitting Boom as Overture production ramps. Additionally, the close proximity to the eastern seaboard facilitates supersonic flight testing over the Atlantic Ocean. Boom corporate headquarters remains just outside of Denver, Colorado.

The Overture Superfactory will be approximately 400,000 ft² and constructed on a 65-acre campus at the Piedmont Triad International Airport.

Boom will bring more than 1,750 jobs to North Carolina by 2030, expanding to a total of more than 2,400 jobs by 2032. North Carolina economists estimate that the Overture Superfactory will grow the state's economy by at least US$32.3 billion over 20 years.

To develop the next generation of supersonic professionals, Boom will also create 200 internships through 2032 for students who attend publicly funded North Carolina universities, community colleges, or technical schools.

Embraer successfully completes reintegration of its Commercial Aviation business

Embraer has successfully completed the reintegration of its commercial aviation business’ main information technology systems and processes. The work done throughout January did not hamper the continuity of the company's essential operations.

The reorganisation resulting from this process began in May 2020 and since then has been one of Embraer's main focuses, as part of the execution of the strategic plan and implementation of initiatives to make good use of skills and recover synergies. The reintegration ensures operational benefits and eliminates fiscal inefficiencies that an integrated, less complex and more agile management can offer. With the completion and restoration of normal service in the company, commercial aviation is again directly linked to Embraer's structure.


Magnetic Group opens new office and hub in Miami, Florida

Magnetic Group is launching its new representative office and hub in Miami, Florida (USA). Magnetic Trading and EngineStands24 are the first group brands to establish a presence in the region.

A significant part of Magnetic Group sales originates from the Americas. Over the past years, the company has been trading large assets within the region and Magnetic Leasing, a brand which provides asset management and leasing solutions, is born from a joint venture with a US-based investment fund. Therefore, it is a logical next step for Magnetic Group to also have a physical presence in the US.

The Miami-based team will focus on the introduction of Magnetic Trading services in the local market, including spare parts and components solutions, a total asset management programme and repair management, while providing local airlines with scheduled and AOG spare parts supply.

Additionally, airlines and asset owners will be able to lease engine stands from the Miami hub using the recently launched EngineStands24 platform – engine stands for CFM56-7B, CFM56-5A/B and V2500 engines - will be available for lease from the US with the company planning to expand the portfolio throughout the year.

Airbus launches new air-cargo service using its BelugaST fleet

Airbus has launched a new air-cargo service using its unique BelugaST fleet to offer freight companies and other potential customers a solution to their outsized freight transportation needs.

The new service - Airbus Beluga Transport - will provide commercially-contracted customers in a variety of sectors, including space, energy, military, aeronautic, maritime and humanitarian sectors, with a solution to their large cargo transport needs.

The first mission took place at the end of 2021 with a delivery from Airbus Helicopters’ manufacturing site in Marignane, France, to Kobe in Japan for an undisclosed customer. Beluga #3 stopped to refuel at Warsaw (Poland), Novosibirsk (Russia) and Seoul (Korea).

Based on the A300-600 design, the five-strong BelugaST fleet, which has until now been the backbone of Airbus’ inter-site transportation of large aircraft sections, are being replaced by six new-generation BelugaXLs to support Airbus’ ramp-up of its airliner production.

The new Airbus Beluga Transport service can cater for a multitude of possible market applications since the planes possess the world's largest interior cross-section of any transport aircraft, accommodating outsized cargo of up to 7.1m in width and 6.7m in height.

In the near future, once Airbus has commissioned all six new BelugaXLs, the fully-released BelugaST fleet will be handed over to a newly-created, subsidiary airline with its own Air Operator Certificate (AOC) and staff. Philippe Sabo Head of ATI and Air Oversize Transport at Airbus, said: “The new airline will be flexible and agile to address the needs of external worldwide markets.”


NAC delivers one ATR 72-600 to Loganair

Nordic Aviation Capital (NAC) has delivered one ATR 72-600 aircraft, MSN 1257, to Loganair on a long-term operating lease.

The 72-seat ATR, which will be registered G-LMTC and named Clan Cairns in service with Loganair, will become the airline’s ninth ATR and form part of its continuing fleet renewal programme.

Loganair, based in the UK, operates 42 aircraft on a network covering over 40 destinations in the UK and Europe.

IAG Cargo adopts IATA DG AutoCheck system

IAG Cargo, the cargo division of IAG (International Airlines Group) has adopted the International Air Transport Association’s (IATA) newly developed Dangerous Goods AutoCheck (DG AutoCheck) to automate the acceptance of dangerous goods shipments from its London-Heathrow hub.

DG AutoCheck is a digital solution that facilitates the acceptance of dangerous goods by checking all the regulations, rules and guidance contained in the IATA Dangerous Goods Regulations (DGR) and converts them into an automated validation solution, enabling IAG Cargo to check the compliance for the Declaration for Dangerous Goods (DGD) against the latest industry regulations more quickly.

The DG AutoCheck platform uses optical character recognition technology enabling paper DGD to be transformed into electronic data facilitating a safe, secure and efficient operation for IAG Cargo in relation to its dangerous goods shipments. The platform facilitates in the verification of the packages’ marks and labels on dangerous goods consignments.

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