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Friday, April 29th, 2022

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ST Engineering and United Airlines sign MOU for long-term airframe maintenance at Pensacola

The Commercial Aerospace business of ST Engineering, Mobile Aerospace Engineering and United Airlines (United) have signed a Memorandum of Understanding (MOU) at the MRO Americas 2022 conference in Dallas, Texas, U.S., that aims to have ST Engineering see part of United’s long-term airframe heavy maintenance needs move to the Pensacola International Airport in Florida, U.S.

ST Engineering currently supports United’s Airbus A320 family out of its facility in Mobile, Alabama. Under the MOU, ST Engineering will extend its heavy maintenance support to the airline by servicing additional narrow-body aircraft at the airframe MRO complex that ST Engineering is constructing at the Pensacola International Airport.

The MRO complex is an expansion to an existing two-bay wide-body hangar facility currently operated by ST Engineering. Estimated to be completed by end 2024, the expansion will add three large state-of-the-art hangars and associated support shops and around 1.5 million manhours to ST Engineering’s annual capacity in Pensacola.

Safran signs NacelleLife service contracts with Hawaiian Airlines and Viva Air Colombia

Safran Nacelles has announced the signing of a six-year contract renewal with Hawaiian Airlines to service the thrust reversers on the carrier’s 24 Airbus A330ceo aircraft. Safran Nacelles will continue to support Hawaiian at its MRO shops located in the U.S.A. and France during scheduled maintenance or one-time repairs during unscheduled maintenance. Safran Nacelles also provides access to a pool of thrust reversers.

Furthermore, the company signed a ten-year service contract with Viva Air Colombia for the nacelles of its growing fleet of A320neo aircraft powered by CFM International LEAP-1A engines. Viva Air Colombia will have access to Safran Nacelles’ global stock of spare engine nacelles that equip the airline’s growing fleet of Airbus A320neo-family jetliners. The Colombian airline will also benefit from OEM-guaranteed MRO solutions at Safran Nacelles repair stations.


Go2Sky of Slovakia leases additional Boeing 737-800NG aircraft

Go2Sky of Slovakia has leased one Boeing 737-800 aircraft, MSN 34684, from a Dublin-based lessor. The aircraft was manufactured in 2006 and had been operated by TUIfly since new. The aircraft is painted white and is equipped with Scimitar winglets and 189Y leather seats. It was delivered to Go2Sky in Lleida, Spain on April 27, 2022.  The lease was arranged by ISIS Aviation Services of Norwich, England acting as sole agent on behalf of Go2Sky. 

Go2Sky is an IOSA-certified ACMI specialist Boeing 737NG operator with past clients including prestigious operators such as Norwegian, Transavia and TUI. "We are very pleased to be finally in the position to commence expanding our fleet again" said Daniel Ferjancek, CEO of Go2Sky. "The aircraft will immediately be deployed on lease to another ACMI customer".

Embraer’s 1Q 2022 earnings reveal narrowing net loss

Embraer’s first-quarter 2022 earnings have reaffirmed the company’s guidance and show a clear narrowing of its net loss. The Brazilian planemaker delivered 14 jets in the first quarter, of which six were commercial aircraft and eight executive jets (six light and two mid-size). The firm order backlog ended 1Q22 at US$17.3 billion (+US$0.3 billion versus 4Q21), the highest quarter backlog since 2Q18, driven by solid order activity.

Revenues reached US$600.9 million in the quarter, down 26% compared to 1Q21, with almost one month of production shut down due to system and legal reintegration of Commercial Aviation in January. In contrast, the reported consolidated gross margin of 20.1% was higher than the 9.5% reported in 1Q21 due to better performance in all segments. Adjusted EBIT and EBITDA were US$(27.0) million and US$13.2 million, respectively, yielding Adjusted EBIT margin of -4.5% and Adjusted EBITDA margin of 2.2%. This includes nonrecurring expenses of US$17 million for the quarter.

Free cash flow (FCF) in 1Q22 was a usage of US$ (67.8) million, representing a significant improvement compared to the US$(226.6) million in FCF in 1Q21, and best FCF for 1Q since 1Q10, consistent with working capital optimization measures and enterprise efficiency.

Commercial Aviation reported revenue reduction of 38% y-o-y to US$169.2 million due to expected lower aircraft deliveries in the quarter. Reported 1Q22 consolidated gross margin from Commercial Aviation of 11.3% higher than -1.5% reported in 1Q21. Executive Aviation 1Q22 revenues were US$ 89.9 million, which is 41% lower y-o-y, driven by expected decrease of 38% in deliveries compared to 1Q21. Reported 1Q22 gross margin from Executive Aviation of 18.7% higher than 6.2% reported in 1Q21.

Defense & Security reported revenue fall of 47% to US$68.3 million, mainly impacted by no KC-390 deliveries in the quarter. Reported 1Q22 gross margin from Defense & Security of 14.4% higher than 10.4% reported in 1Q21. Services & Support reported revenues of US$271.2 million, representing y-o-y growth of 8%. It continues to show solid recovery as airlines flight activities are recovering from the pandemic peak in 2020. Reported 1Q22 gross margin from Service & Support of 26.5% higher than 24.6% reported in 1Q21. The Company finished the quarter with total debt of US$3.6 billion, or US$0.5 billion less in line with the strategy to improve our capital structure. (£1.00 = US$1.25 at time of publication).


Wencor and Turkish Technic sign multi-year parts agreement

Wencor and Turkish Technic have announced the signing of a multi-year parts agreement, where Wencor will provide consumable and expendable (C&E) parts to support Turkish Technic’s maintenance operations. The parties held a signing ceremony during MRO Americas in Dallas, Texas.

Wencor and Turkish Technic have enjoyed a long-standing relationship of over 30 years. This agreement will continue to enhance the partnership, permitting the parties to work together to accurately forecast, efficiently supply, and quickly respond to the expanding supply chain requirements in today’s aerospace market, allowing for best-in class customer service. Wencor will support the agreement through its worldwide stocking facilities with local oversight from its Istanbul office.

On the signing of the new contract the CTO of Turkish Technic, Yasin Birinci stated that: “As a leading MRO with decades of experience in the market, we value strategic partnerships that allow us to best serve our customers. Therefore, we are happy to extend our long-standing partnership further with Wencor. The C&E parts agreement will allow both parties to dynamically meet fast-changing demand of today’s global aviation. We will continue to operate as a one-stop solution centre for the aircraft and component maintenance needs of our customers.”

MTU Aero Engines starts 2022 with higher revenue and earnings

MTU Aero Engines AG (MTU) generated revenue of €1,180 million in the first quarter of 2022. That was 19% more than in the prior-year period (1-3/2021: €989 million). The operating profit was 52% higher at €131 million (1-3/2021: €86 million). The adjusted EBIT margin was 11.1%, compared with 8.7% in the first quarter of 2021. Net income rose by 60% from €58 million to €93 million.

In the first quarter of 2022, MTU recorded the strongest revenue growth in the military engine business, where revenue rose by 25% to €108 million (1-3/2021: €87 million). “That reflects the postponement of EJ200 deliveries from the fourth quarter of 2021 to the first quarter of this year,” said Rainer Winkler MTU's CEO. The main revenue driver was the EJ200 engine for the Eurofighter.

Revenue from commercial maintenance rose by 21% to €819 million (1-3/2021: €678 million). The most important revenue generators were the V2500 for the classic A320 aircraft family and the PW1100G-JM engine for the A320neo.

Revenue from the commercial engine business increased by 11% from €250 million to €278 million. On a dollar basis, the spare parts business registered organic revenue growth in the high-teens percentage range, while organic growth in the commercial series business declined by around 15%. “Revenue from series business mainly reflects lower deliveries of the Geared Turbofan™ and the GEnx,” explained Winkler. “We assume that GTF deliveries, in particular, will recover in the coming months.” The main source of revenue in the commercial engine business was the PW1100G-JM.

At the end of the first quarter, MTU’s order backlog rose to a new record of €23.4 billion, 5% higher than at year-end 2021 (December 31, 2021: €22.2 billion). The majority of orders were for the V2500 and the Geared Turbofan™ engines of the PW1000G family, especially the PW1100G-JM.

Earnings improved in both the OEM business and the commercial maintenance business.

Quarterly earnings from the OEM business rose by 66% from €47 million to €78 million. The adjusted EBIT margin increased from 14.0% in the first quarter of 2021 to 20.2% in the first quarter of 2022. “This clear rise in earnings was due to a mix of higher military and spare parts business, whereas the series business declined,” said MTU's CFO Peter Kameritsch.

In the commercial maintenance business, quarterly earnings rose by 34% to €53 million (1-3/2021: €39 million). The adjusted EBIT margin was 6.4%, compared with 5.8% in the prior-year period. Kameritsch: “The improved margin is the result of the favorable revenue mix in the first quarter: The proportion of maintenance work in our core business relative to maintenance work on the GTF engines was above the ratio we anticipate for the full year.”


easyJet partners with GKN Aerospace to accelerate adoption of hydrogen in aviation

easyJet has announced it is working with GKN Aerospace, a leading multi-technology Tier 1 aerospace supplier, to work toward reducing carbon emissions in aviation through the adoption of zero carbon emission technologies.

easyJet will support the development of GKN Aerospace’s Hydrogen Combustion (H2JET) and Hydrogen Fuel Cell (H2GEAR) technology, including exploring the options for flight demonstration, as part of the airline’s ambition to de-carbonise aviation. easyJet will provide insights into operational requirements and economics.

H2GEAR is a GKN Aerospace-led ground-breaking UK collaboration programme aiming to develop a liquid hydrogen propulsion system for sub-regional aircraft that could be scaled up to larger aircraft. Liquid hydrogen is converted to electricity within a fuel cell system, which subsequently and efficiently powers the aircraft, eliminating carbon emissions and creating a new generation of clean air travel.

The H2GEAR programme is supported by £27 million of ATI funding, matched by GKN Aerospace and its industrial partners.

H2JET is a Swedish collaborative two-year programme led by GKN Aerospace to push the development of key subsystems for gas turbine-based hydrogen propulsion of medium-range civil aircraft.

Air Transport Components to open MRO facility in Tulsa, Oklahoma

During this year's MRO Americas in Dallas, Texas, Air Transport Components (ATC) has announced plans to establish a new MRO facility in Tulsa, Okla. The company has selected a 60,000 ft² facility located on Historic Route 66. At the Tulsa facility, ATC will offer HVOF thermal spray coatings, grinding, NDT and painting, and plans to expand these offerings in the future. ATC plans to employ 50 staff in Tulsa and will make an overall investment of approximately US$5 million (£4 million) in the building as well as technology and equipment.

“Due to increased volume, new capabilities, and the unique opportunities that the state of Oklahoma provides, ATC decided to expand its strong industry brand into Tulsa,” said Jimmy Newman, CEO, ATC. “The MRO and aerospace workforce in Oklahoma is unmatched and was certainly the deciding factor when looking at expansion options.”

ATC has operated an FAA/EASA Repair Station in Gilbert, Ariz., for more than 20 years. Approved by all major airlines, ATC has a large portfolio of services including repair of airframe, structural and hydraulic components as well completing full landing gear overhauls. This second location will expand capabilities with HVOF thermal spray, grind, NDT, and paint with additional capabilities coming soon.

ATC is a privately-owned company now with over 130,000 ft² to support its valued and strategic customers.

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