Monday, July 2nd, 2018



After Australia, U.S. carriers now targeted by China over Taiwan spat

Six months after Australian Carrier Qantas was forced to amend its website details, removing any reference to Taiwan being a separate country to China, American carriers are now in the crosshairs of the Chinese government as it looks to enforce its One China Policy.
While territories such as Macau and Hong Kong are accepted as being part of mainland China after leases to the U.K and Portugal ended in 1997 and 1999 respectively, Taiwan has always been seen as a separate entity, an independently governed state since the formation of the communist regime 70 years ago. The Chinese government continually refuses to accept that Taiwan, (often referred to as the Republic of China ROC), is independent of the People’s Republic of China (PRC) and is now towing a hard line on those who choose not to follow suit.
With tensions rising over a trade dispute between the U.S and China, the Chinese government has refused to hold talks requested by the U.S. on the matter and has bluntly asked the U.S. to advise its airlines to amend their websites in order to show that Taiwan is part of the PRC.
Speaking at a daily news briefing, Chinese Foreign Ministry spokesman Lu Kang said it was the broad consensus in the international community that there was only one China and that Taiwan was part of it, and that this was not up for negotiation. Foreign companies operating in China must respect the country's sovereignty and territorial integrity as well as the feelings of the Chinese people, he added.
"I again stress, the 'one China' principle is the political basis of Sino-U.S. ties, and brooks no negotiations or consultations," Lu said. "The U.S. government should urge the relevant companies to scrupulously abide by the one China principle and rectify their websites as soon as possible."


Maximizing aviation's benefits in the Caribbean

The International Air Transport Association (IATA) called on governments and other aviation stakeholders in the Caribbean region to work together to maximize the benefits of aviation connectivity. "Aviation is essential to supporting tourism in the Caribbean region, transporting approximately 50% of all tourists who travel here. It also provides a vital lifeline when disaster strikes, as occurred during last autumn's devastating hurricane season," said Peter Cerda, IATA's Regional Vice President, The Americas.
Speaking at Aviation Day Caribbean, organized by IATA, the Caribbean Development Bank and the Latin American and Caribbean Air Transport Association, Cerda said that aviation supports over 1.6 million jobs and more than US$35.9 billion in GDP, equivalent to 14% of the total Caribbean economy. "Aviation can do much more if governments work with industry to maximize the value aviation delivers. Unfortunately, too many of the region's governments still see air travel primarily as a luxury for the wealthy -- and an easy target for taxation. Making matters worse, these taxes and fees usually are not spent on boosting the efficiency and capacity of the airport and airways infrastructure, but rather to put money into the treasury," Cerda said.
In one Caribbean state, roughly 70% of the average one-way fare is made up of taxes and charges, according to a recent report commissioned by IATA(1). There are 10 other Caribbean markets for which taxes and charges represent more than 30% of the ticket price, according to the same report.
Barbados recently joined this taxing trend as the government's short-term budget imposes significant new taxes on air travelers. For a family of four traveling to Barbados from Europe or North America, the new tax will add a total of US$280 to their travel cost. The tax will also affect air travelers within the Caribbean Community nations, adding US$35 to each ticket, a significant increase in short haul markets where traffic is already struggling.
"While there is no denying the budgetary challenges facing many governments in the region, imposing heavy fees and taxes on aviation and air travel negatively affects levels of tourism and business travel—the very things required for a vibrant economy," said Cerda.
Excessive taxes are just one challenge. Another is the high cost of operating at a number of the region's airports owing to expensive fees and charges. Additionally, restrictive air service agreements in many countries reduces the number of routes airlines can operate.
"The Caribbean region is well-positioned to increase the benefits that aviation can deliver. But this can only occur in partnership with governments that recognize that the true value of aviation is in the connectivity it delivers and opportunities it creates, and not in the fees and taxes that can be extracted from it," said Cerda.

GA Telesis

ST Engineering divests shares in Airbus Helicopters Southeast Asia

Singapore Technologies Engineering (ST Engineering) has announced the divestment of 25% equity interest in its indirect associates, Airbus Helicopters South East Asia (AHSA) to the joint venture partner, Airbus Helicopters SAS (Airbus Helicopters) of France.
The consideration for the 25% stake is €9.125 million (approximately S$14 million) which will be paid wholly in cash.
AHSA was set up between ST Engineering and Airbus Helicopters in 1977 to provide helicopter sales, repair, overhaul, logistics and product support services. The divestment of AHSA is a result of ST Engineering’s ongoing business review to streamline capabilities and optimise resources within its aerospace sector and is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
With this divestment, AHSA ceases to be an indirectly held associated company/joint venture of ST Engineering.

Bombardier confirms closing of C Series transaction

The closing of the previously announced C Series transaction between Airbus SAS, a wholly-owned subsidiary of Airbus SE, Bombardier and Investissement Québec came into effect on July 1, 2018.
Airbus now owns a 50.01% majority stake in C Series Aircraft Limited Partnership (CSALP), while Bombardier and Investissement Québec (acting as mandatory for the government of Québec) own approximately 34% and 16% respectively. CSALP’s head office, primary assembly line and related functions are based in Mirabel, Québec.
Furthermore, as previously announced, on July 1, Bombardier has issued in the name of Airbus SAS warrants exercisable for a total number of 100,000,000 Class B shares (subordinate voting) in the capital of Bombardier, exercisable for a period of five years at an exercise price per share equal to US$1.74, being the U.S. dollar equivalent of CAD$2.29 on June 29, 2018.


Airbus’ newest widebody A330neo in Mauritius for the first time

Airbus' brand new A330neo has landed in Mauritius for the first time on June 30, as part of the final phase of test flights leading to the Type Certification of its latest mid-size widebody airliner. The aircraft, an A330-900 painted in the livery of launch operator TAP Air Portugal, had arrived at Sir-Seewoosagur-Ramgoolam International Airport (MRU) after a flight from Kuala Lumpur (Malaysia). The stopover was part of the ”route proving” campaign taking place around the world designed to demonstrate to aviation authorities its compatibility with airports and readiness for airline operations. This trip marks the A330neo’s first time in Africa.
Air Mauritius has already ordered two A330-900 on lease from ALC, and later this year, Air Mauritius will be the world’s first airline to operate both the A330neo and the A350 XWB, the Airbus leading widebody family. Air Mauritius currently operates a fleet of 12 Airbus aircraft of which two A350s, six A340s, two A330s for long haul operations and two A319s for regional services.

Jet Airways inducts India's first 737 MAX 8

Jet Airways, India's premier international airline, has inducted its very first Boeing 737 MAX in its fleet. The 737 MAX represents Boeing’s latest upgrade to its single aisle 737, which has been the backbone of Jet Airways’ fleet ever since the airline commenced operations in 1994 with the then latest 737-300s. The new 737 MAX 8 will offer a standard two-class configuration comprising 12Premiere and 162 seats in Economy, complete with JetScreen - the airline’s in-flight entertainment system that offers over 330 hours of the latest entertainment on personal devices. Guests can relax and enjoy their favourite programming from among Hollywood, Bollywood and regional movies, TV shows, games and music.

DAE takes delivery of first Boeing 737 MAX aircraft

DAE Capital has taken delivery of its first new Boeing 737 MAX 8 aircraft on lease to Gol Linhas Aéreas, Brazil’s largest airline by passengers carried. The delivery took place at the Boeing delivery center in Renton, USA.
In addition to being the first MAX aircraft to enter the DAE fleet, this delivery marks the first MAX aircraft to deliver to GOL and the first MAX aircraft to enter the fleet in Brazil. The transaction is part of a five-aircraft purchase-leaseback transaction with GOL.

C&L Aviation

TRUEAERO Asset Management completes first Boeing 777 C-check

TRUEAERO Asset Management (TAAM) has completed its first Boeing 777 C-Check. The aircraft, a Rolls-Royce Trent 800-powered 777-200ER, underwent the major inspection event, which was completed over 45 days between February and March, as part of a transition to a new lessee.
TAAM provided contractual oversight services on behalf of the aircraft’s owner, with deployment of a four-person supervisory team on-site at Pulsar Aviation Services at its San Bernardino (California) International Airport facility.
The 777-200ER project was TAAM’s first C-check on a wide-bodied airframe after years of experience overseeing major maintenance on narrow-bodied transports. TAAM, a business unit of TRUEAERO LLC, focuses on investments in mid to end-of-life aircraft, as well as undervalued aircraft and parts which benefit over time from market volatility, throughout North America, South America, Europe and Asia. At TAAM, management takes an active approach to investing, seeking opportunities where significant value can be unlocked through capital restructuring, operational improvements, and strategic asset management.
Founded in 2014, TRUEAERO is a leading commercial aircraft and turbine engine sales, leasing, aftermarket parts and materials management company. Headquartered in Sebastian, Florida, the company has facilities in Dallas, Singapore, and Dublin.

Hungary orders 20 H145Ms

The Hungarian Ministry of Defence has ordered 20 H145M military helicopters equipped with the innovative HForce weapon management in the frame of the military modernisation programme Zrinyi 2026. Together with the helicopters, Airbus will provide an extensive training and support package.
With a maximum take-off weight of 3.7 tonnes, the H145M can be used for a wide range of tasks, including troop transport, utility, surveillance, air rescue, armed reconnaissance and medical evacuation. The Hungarian fleet will be equipped with a fast roping system, high-performance camera, fire support equipment, ballistic protection as well as an electronic countermeasures system to support the most demanding operational requirements. The HForce system, developed by Airbus Helicopters, will allow Hungary to equip and operate their aircraft with a large set of ballistic or guided air-to-ground and air-to-air weapons.
The H145M is a tried-and-tested light twin-engine helicopter that was first delivered in 2015 to the German Armed Forces and has since been ordered by Thailand and the Republic of Serbia. The programme’s maturity allows Airbus Helicopters to execute orders on cost and on schedule. Mission readiness of the H145Ms already in service is above 95 percent.
Powered by two Safran Arriel 2E engines, the H145M is equipped with full authority digital engine control (FADEC) and the Helionix digital avionics suite. It includes a high-performance 4-axis autopilot, increasing safety and reducing pilot workload. Its particularly low acoustic footprint makes the H145M the quietest helicopter in its class.

Component Control

Austrian low-cost market heats up as IAG enters the frame

IAG is to become the fourth low-cost carrier to operate out of Vienna with an Air Operator Certificate issued by the Austrian Civil Aviation Authority. The Group, which owns British Airways, Vueling and Iberia, among others, has announced the creation of a new low-cost carrier, LEVEL, which will service short-haul routes from the Austrian capital.
Level will join easyJet, Lufthansa offshoot Eurowings, and newly formed Laudamotion, a joint venture between Niki Lauda and Ryanair and the resurrection of the low-cost carrier, Niki, which folded with the demise of its parent company Air Berlin.
The new carrier will operate four Airbus A321 aircraft each with 210 economy seats and will service fourteen short-haul destinations from Vienna, with primary destinations including London Gatwick (14 flights per week), Paris Charles de Gaulle (13 flights per week) and Milan Malpensa (13 flights per week.) Other destinations include Palma, Barcelona, Malaga, Olbia (Sardinia), Venice, Ibiza, Dubrovnik, Larnaca, Alicante, Valencia and Bilbao.
LEVEL will commence commercial operations on July 17 with flights to London Gatwick and Palma.
According to IAG’s chief executive officer Willie Walsh: “We are launching this new short-haul subsidiary to provide Austrian consumers with more flight choices across Europe. These flights will be branded as LEVEL to build upon the huge success of our new long haul low-cost operation.
“We will serve the Austrian market with low-cost, reliable flights and will initially create around 200 new jobs at our Vienna base.


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Farnborough International Airshow
July 16 - 22, 2018

Engine Leasing Seminar
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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