Friday, June 15th, 2018



Rolls-Royce confirms 4,600 jobs will go

As part of its restructuring, Rolls-Royce has confirmed that 4,600 jobs are to go worldwide, including 3,000 positions based in the UK, the majority being managerial and administrative roles. The company has not ruled out the need for compulsory redundancies.
It has also been confirmed that some engineers will also be leaving, predominantly those in early-stage design as they are not presently needed. This is the biggest round of redundancies since 2001 and by the end of this year 1,500 of the 4,600 jobs will have been axed.
The cost of these redundancies, along with other restructuring, may well reach £500m, but should save £400m annually by 2020. Rolls-Royce has said that it would stand by a deal made with the unions last year which would safeguard 7,000 engineering jobs.
Warren East, the aircraft engine maker’s chief executive, said: “It’s a horrible decision”, but pointed out that the 33,000 non-manufacturing staff were “too many for a business of our size.” The company employs 55,000 people worldwide and, including contractors, has a workforce of 26,000 in the UK.
Rolls-Royce made it clear that restructuring would reduce management layers and complexity. However, it is still aiming to ramp up production and anticipates making 600 engines for wide-body aircraft a year by 2020, twice as many as five years ago.
It has been a difficult week for Rolls-Royce, having also discovered further problems with its problematic Trent 1000 engines which power Boeing’s 787 Dreamliner. Over 30 aircraft have been grounded, with analysts estimating the cost of fixing the problems and paying compensation to airlines may well reach £1bn. (£1.00 = US$1.34 at time of publication.)


Bombardier’s Global 7500 jets begin arriving in Montreal as on-schedule ramp-up continues

Bombardier has announced that Global 7500 aircraft started arriving at the company’s Montreal facilities last month, where high-precision completion work is being carried out on this industry-defining jet.
Skilled workers at Bombardier’s state-of-the-art Centre of Excellence in Dorval, Quebec, have been building and assembling complete interior sets including kitchens, state room beds, dining furniture and Nuage seats for multiple customer aircraft since the centre’s inauguration in 2017.
As part of the development program, interiors are validated on the ground in a one-of-a-kind Bombardier-designed test rig that replicates the conditions of flight related to airframe motions and flight loads using a production fuselage mounted on a pneumatic bed. This process allowed for the validation of the interior’s fit and finish well in advance of its actual installation on the Architect, the fourth flight test vehicle.
Bombardier is now using this unique tool for the interiors installation process of its production aircraft to ensure enhanced operational efficiency and an uncompromised experience for customers.

Airbus inaugurates Hamburg’s fourth A320 Family production line

Airbus has inaugurated the fourth Hamburg, Germany A320 Family production line. Making use of digital technologies and a more flexible industrial setup, the innovative state-of-the-art line is a key enabler for ramping up the single-aisle programme to 60 aircraft per month by mid-2019.
“The inauguration of our latest, most modern A320 production line opens a new chapter in efficient, digital aircraft manufacturing,” said Guillaume Faury, President Airbus Commercial Aircraft. “With these new technologies we are building our aircraft more efficiently, a key enabler for higher production rates. I would like to thank the teams who pushed this newest Airbus production standard from concept to reality.”
The A320 Family aircraft are manufactured globally, at Airbus sites in Europe, China and the US. In addition to the new production line, Airbus also inaugurated a larger and modernised Hamburg A320 Family delivery centre with more customer areas, more efficient delivery processes and increased hospitality services.

TP Aerospace

GA Telesis Engine Services appoints Carsten Holm as Chief Commercial Officer

GA Telesis Engine Services Oy (GATES) has appointed Carsten Holm as Chief Commercial Officer (CCO).
Holm, who previously served as GATES Chief Operations Officer (COO), is responsible for driving commercial solutions for GATES business including the development and implementation of supply chain and inventory strategies, while furthering the internal repair business.

IKAR selects AerFin to support Embraer E-Jet fleet

AerFin has signed a five-year contract to support IKAR Airlines’ fleet of seven Embraer E-Jets via its “Beyond Pool” support programme. BeyondPool™ offers a fixed-cost solution to support the component requirements of IKAR Airlines’ seven Embraer E190s and will be fully supported out of AerFin’s London Gatwick facility together with the provision of a significant inventory-holding located at the main operating base at Sheremetyevo International Airport in Moscow.
IKAR becomes the latest customer to join AerFin’s BeyondPool™ support program, subsequent to BA CityFlyer joining the program in February 2018, where they signed a seven-year partnership agreement with AerFin, that covers all component support requirements for its E-Jet fleet.
IKAR Airlines is a Russian Far-Eastern carrier, based at Krasnoyarsk Yemelyanovo Airport and operating as Pegas Fly. IKAR was rebranded as Pegas Fly in 2013, and now operates scheduled passenger services from Krasnoyask, as well as charter services on behalf of Pegas Touristik. The carrier is operated by IKAR Airlines LLC and maintains IKAR Airlines as the carrier's legal name.


Gatwick’s latest £1.1bn five-year-plan takes total investment over £3bn mark

At the British-Irish Airports Expo in London, London Gatwick Airport’s Chief Executive, Stewart Wingate, announced a new five-year Capital Investment Plan (CIP) for Gatwick Airport which will see an investment of £1.1bn over a five-year period, with £266m already earmarked for 2018/2019 alone.
Gatwick sees continued growth in the long-haul market, predicting passenger numbers increasing to 53 million by 2023 and is concentrating on improving facilities and transforming passenger services. Since the airport came under the ownership of Gatwick Airport Limited, a wholly owned subsidiary of Ivy Holdco Limited, in 2009 and including this latest announced investment, the total investment figure will increase to £3.14bn.
Projects identified for part of the development plan include, but are not limited to:
• Pier 6 Western Extension
• A new domestic arrivals facility, including a new baggage reclaim in South Terminal.
• A new mezzanine level extension in the North Terminal departure lounge to accommodate new restaurants.
• Completion of the road system and taxiway entrance to the new Boeing aircraft hangar
• Trial of biometric auto-boarding technology in the North Terminal
• Re-development of South Terminal hotel capacity.
• Completion of the South Terminal long stay car park decking project
• Support for greater use of electric vehicles
• Enabling works for Network Rail’s planned upgrade to the Gatwick station.
• Investment in joint equipment for ground handlers
• New reception centre for passengers with reduced mobility in the North Terminal.
Stewart Wingate commented that: “Gatwick is a major piece of national infrastructure, and our continued growth and ability to attract long-haul airlines is vital for the health of the UK economy, particularly in a post-Brexit world. We are exploring ways to grow our capacity, including developing new systems and processes to handle more passengers, and considering how we use all our existing infrastructure in the future."
“By committing to spend another £1.11 billion, Gatwick can continue to grow sustainably, attract new airlines and offer more global connections, while providing an excellent service to passengers.
Gatwick is a hub for British Airways, and a focus city for easyJet, Norwegian Air Shuttle, Thomas Cook Airlines and TUI Airways." (£1.00 = US$1.33 at time of publication.)

C&L Aviation

Ameco completes global first D-Check for Boeing 747-8F

Ameco has completed the global first D-Check for a Boeing 747-8F. The freighter has been redelivered to its operator and already put into operation.
The D-Check project involves more than 1300 job cards, of which 260 job cards and 40 Engineering Orders were performed by Ameco for the first time.
In order to ensure the work quality and TAT, Ameco had arranged a team that is very experienced on Boeing 747 airframe work. During the whole process, Ameco conquered technological difficulty to ensure a satisfying result. The success of this global first D-Check is a milestone for Ameco’s base maintenance capability development.
Ameco’s base maintenance facilities are mainly located in Beijing and Chengdu for heavy maintenance, PTF conversion and various modifications, and the services involves in Boeing 737, 747, 757, 767, 777 as well as Airbus A320, A330.

Aer Lingus orders A330 Cabin Service Trainer from Spatial

Following Spatial’s successful completion of upgrade works to Aer Lingus’s A320 Cabin Emergency Evacuation Trainer and A330 Door Trainer in 2017, Spatial has been appointed to manufacture an A330 Cabin Service Trainer.
The device will replicate the latest finishes in Aer Lingus’s Business and Economy cabins to allow the airline to further enhance its service offerings. The device will be operational in summer 2018.

AviTrader CS

IAI and Airbus enter US$600 million agreement to lease Heron TP MALE RPASs to German Defense Ministry

Israel Aerospace Industries (IAI) has signed an agreement with Airbus to lease Heron TP Medium Altitude Long Endurance (MALE) RPASs (remotely piloted air vehicle system) to Germany’s Federal Ministry of Defence.
Under the US$600 million deal, Airbus DS Airborne Solutions GmbH will serve as the prime contractor responsible for managing all aspects of the project, including operational support and maintenance throughout the term of the agreement.
The nine-year agreement is pending approval of the German federal budget, which is expected in the second half of 2018.

Etihad reduces losses in 2017

Etihad Airways said that it improved its core operating performance by 22% in 2017, despite facing challenges including significant fuel cost increases, the entry into administration of its equity partners Alitalia and airberlin, and initial investment in a comprehensive business transformation programme.
The airline increased revenues from core operations by 1.9% to US$6.1 billion (2016: US$5.9 billion), while reducing losses in the core operations by US$432 million to US$1.52 billion (2016: loss of US$ 1.95 billion). Results published for 2017 are for core airline operations and exclude any extraordinary or one-off items; 2016 figures have been restated to show a like-for-like comparison.
Passenger and cargo yields improved as a result of capacity discipline, changes to the network with an increased focus on point-to-point traffic, leveraging of technology, and improving market conditions.
A strong focus on efficiency delivered a 7.3% reduction in unit costs, despite the adverse impact of US$337 million from higher fuel prices.
The airline reduced administration and general expenses by 14%, or US$162 million, over 2016.
Etihad Airways carried 18.6 million passengers at a 78.5% load factor. Available Seat Kilometres (ASKs) increased by 1% in 2017 reflecting a significant moderation of capacity growth, and contributing to an improvement in the quality of the airline’s revenues.
“This was a pivotal year in Etihad’s transformation journey. The Board, new executive leadership team and all our employees worked extremely hard to navigate the challenges we faced. We made significant progress in driving improved performance and we are on track in 2018.”


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Farnborough International Airshow
July 16 - 22, 2018

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September 18, 2018 – Copthorne Tara Hotel, Kensington, London, UK

Transactional Support & Risk Management Seminar, London
September 19, 2018 – Copthorne Tara Hotel, Kensington, London, UK

MRO Europe
October 16 - 18, 2018 – Amsterdam

Aircraft Economic Life Summit 2018
November 20, 2018 – Gibson Hotel, Dublin, Ireland
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