CFM56-7B ECU2018-08-08

Tuesday, August 14th, 2018



Mediation begins as Ryanair and Irish pilots try to reach agreement

Ryanair, the Irish low-cost carrier, has entered into three days of mediation in an attempt to reach a mutually acceptable conclusion to the current dispute with Irish pilots and their unions, the Irish Airline Pilot’s Association (IALPA) – part of the Fórsa trade union. While negotiations continue, the union has confirmed that no further strike action will take place.

The first encounter took place on August 12, when Ryanair and IALPA met with Kieran Mulvey in an attempt to resolve the dispute which has led to five strikes at the airline over the last month. Mulvey, a former chairman of the Workplace Relations Commission, had been proposed by the Irish carrier last week after IALPA had requested third-party involvement.

Around 100 of Ryanair’s 350 Ireland-based pilots took part in last Friday’s dispute over promotions, transfers, leave and certain issues connected to seniority. In combination with a series of strikes from pilots in Belgium, Germany, The Netherlands and Sweden, the result has seen Ryanair forced to cancel 396 of its planned 2,400 flights that day, affecting some 67,000 passengers.

Prior to yesterday’s meeting, IALPA spokesman Bernard Harbor predicted that the process would be challenging for both sides but that he welcomed third-party involvement. However, he also commented that matters had been complicated by the threat of redundancies at Ryanair after its board had approved a proposal to cut the airline’s Dublin fleet from October, with the potential loss or transfer of 300 jobs, including 100 pilots and 200 cabin crew.


United reports July 2018 operational performance

United Airlines (UAL) has reported July 2018 operational results. UAL's July 2018 consolidated traffic increased 6.9% and consolidated capacity increased 4.0% versus July 2017. UAL's July 2018 consolidated load factor increased 2.4 points to 89.3% compared to July 2017.

Azul reports adjusted net income of R$238 million, up R$277 million year over year

Azul, the largest airline in Brazil by number of cities and departures, has reported its results for the second quarter of 2018 (2Q18). Net income adjusted for non-recurring items totaled R$238.3 million, compared to a net loss of R$38.6 million in 2Q17. Adjusted operating income was R$75.8 million yielding a margin of 3.7% compared with R$98.8 million and a margin of 5.8% in 2Q17.
Passenger traffic (RPKs) increased 17.4% over a capacity increase of 18.6% resulting in a load factor of 80.1%, 0.8 points lower than in 2Q17. In addition to the double-digit growth in capacity, RASK and PRASK adjusted for the loss in revenue from the truckers’ strike in Brazil increased 1.6% and 1.1% year over year. Net financial expenses decreased 26.9% from R$111.8 million to R$81.8 million due to lower average cost of debt and lower leverage year over year.

At the end of 2Q18, Azul's total cash and receivables position totaled R$3.8 billion, representing 45% of the last twelve months’ revenues. Azul’s operating fleet totaled 121 aircraft at the end of the quarter, including 15 next-generation A320neo aircraft, representing 24% of total capacity.


Air BP presents carbon offsetting program for business aviation at LABACE 2018

Air BP, the international aviation fuel products and services supplier, will highlight its pioneering carbon offset program for business aviation in Brazil at LABACE, the largest business aviation conference and exhibition in Latin America. Through this program Air BP offsets carbon emissions, via BP Target Neutral, related to the use of aviation fuel supplied to its customers.

This initiative supports the aviation industry’s ambitious targets set by ICAO of achieving carbon neutral growth by 2020 and a 50% cut in total emissions by 2050, relative to 2015.

“We are very proud to present such an important initiative during LABACE. We are offering our business aviation customers the opportunity to proactively work towards achieving the industry’s ambitious carbon reduction targets by offsetting the emissions from the aviation fuel used in their flights, as part of their wider carbon management programs” says Ricardo Paganini, General Manager, Air BP South America.

The program is in line with BP’s commitment to achieving a lower carbon future; addressing the dual challenge of meeting the increasing energy needs the world demands while at the same time working to reduce greenhouse gas emissions.

“In addition to finding ways to reduce our own carbon emissions, we work closely with our customers to develop innovative offers that support them in the transition to a lower carbon future," continues Paganini. Air BP’s carbon offsetting offer in Brazil complements its own carbon neutral into-plane fueling operations at 250 directly operated locations around the world, including a number of locations in Brazil such as Sao Paulo Guarulhos and Rio de Janeiro Galeao international airports.

In June, Air BP announced its first participant in the program in Brazil. The executive aircraft management company Avantto saw in the initiative the opportunity to take another step in their own sustainability journey and offer their customers an additional benefit – have the carbon emissions from the aviation fuel used in their flights offset.

This builds on initiatives by Air BP in other regions, such as the announcement in April of their collaboration with leading on-demand jet charter marketplace Victor in a carbon-offset programme for private flying in Europe, as well as the ability for operators and pilots who use the RocketRoute MarketPlace app to offset the carbon associated with their fuel purchases.

41938-Bombardier-MRO-Adverts 6.25 X 2 Generic

158 new trainees start training at Lufthansa Technik Group

158 young people are now starting either traditional or dual-study training programs with the Lufthansa Technik Group. In parallel, the selection process for 2019 is already underway. All told, Lufthansa Technik in Germany will now be home to 582 young people on their way to professions in technical aircraft services or aircraft logistics.

Beginning in 2019, Lufthansa Technik intends to nearly double the number of training slots in Hamburg and Frankfurt over a period of several years. This decision was made on the basis of the company's good economic development and the fact that many of its employees will soon reach retirement age. Several subsidiaries are once again increasing their trainee numbers as well: In particular, Lufthansa Technik AERO Alzey plans a significant extension of its training activities.
Among the 78 trainees starting in Hamburg are three deaf people, who are part of a project that Lufthansa Technik launched in 2000: Every two years, deaf people have the opportunity to become tool mechanics, with the vast majority of graduates going on to work at the company's workshops in permanent positions.

46 of the new trainees are joining programs in Frankfurt, 16 in Arnstadt, 11 in Alzey and four in Munich. Applicants were able to choose between 12 different professions and courses of study.

Catherine Razzano appointed Chief Compliance Officer at Panasonic Avionics

Panasonic Avionics Corporation (Panasonic) has appointed Catherine L. Razzano as Chief Compliance Officer.

She will be responsible for overseeing Panasonic’s compliance with laws, regulatory requirements, policies and procedures, and will report directly to the General Counsel of Panasonic Corporation of North America (PNA) with a dotted line reporting structure to Panasonic’s Chief Executive Officer, Hideo Nakano.

Razzano joins Panasonic from General Dynamics Corporation where she held the position of Assistant General Counsel and Director from 2010.


GE Aviation Asheville hits major production milestone

GE Aviation Asheville, a leader in delivering Ceramic Matrix Composites (CMCs) components for commercial aviation applications, celebrated the delivery of its 25,000th CFM International LEAP engine turbine shroud.

Just five years after breaking ground, CMC production at the site is thriving. Shroud production rates for the LEAP program have more than tripled each year since the site opened. Today, these Asheville-produced shrouds have surpassed more than 1.5 million flight hours on the 800+ LEAP engines in commercial airline service.

The LEAP is the world’s best-selling jet engine with a current backlog of more than 15,500 engines — translating to over 300,000 shrouds for the GE Aviation Asheville team to produce.
CMCs are a super material that is as tough as metals, but only one-third as heavy and can operate at 2,400 degrees Fahrenheit — 500 degrees higher than the most advanced alloys. When incorporated in today’s commercial engine, CMC can save millions of dollars annually for airline fleets. A 1 percent reduction in fuel consumption can save more than US$1 million a year for commercial air carriers. This next generation CMC material technology being produced by GE Aviation will improve fuel efficiency at 1 to 2 percent.

FL Technics lands Comair as new client

FL Technics, a global provider of integrated aircraft maintenance, repair and overhaul services, has signed an agreement with Comair, a private domestic airline operator in the Republic of South Africa, listed on the Johannesburg Stock Exchange (JSE).

Comair is a South African aviation and travel company, offering scheduled and non-scheduled airline services within South Africa, Sub-Saharan Africa and the Indian Ocean Islands, as its main business. The company operates under its low-fare airline brand, kulula.com, as well as under the British Airways livery, as part of a license agreement.

According to the agreement, Comair will receive extended base maintenance services. “The first aircraft, a Kulula.com Boeing B737-800 is being completed a 6YR C Check”, - said Zilvinas Lapinskas, CEO at FL Technics.


SAS traffic figures – July 2018

SAS has reported that the scheduled number of passengers increased by 2.2% to 2.6 million in July 2018. Scheduled traffic and capacity increased by 1.9% and 3.0%, respectivel compared to the same period in 2017. Passenger load factor decreased by 0.9 points to 85.6%.

JetBlue Airways reports July load factor of 88.9%

JetBlue Airways has reported its preliminary traffic results for July 2018. Traffic in July increased 6.2% from July 2017, on a capacity increase of 4.1%. Load factor for July 2018 was 88.9%, an increase of 1.8 points from July 2017.


click here to download the latest PDF edition


click here to download the latest PDF edition

click here to subscribe to our other free publications


click here to view in PDF aircraft and engines available for sale and lease


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
twitter linkedin