Tuesday, July 10th, 2018



Air France-KLM shares jump on rise in June passenger traffic

The share price of Air France-KLM at one point on Monday, July 9, rose 8.4 percent, the largest increase since 2017. The rise reflects the company’s 3.5 percent rise in passenger traffic for June. The share price peaked at €7.46 (US$8.73) and closed at €7.34 (US$8.59), up 6.34 percent.
In addition to the positive uptick in passenger numbers, Air France-KLM may be a step nearer appointing a new CEO to replace Jean-Marc Janaillac who resigned in May, having failed to resolve current conflicts with unions over pay increases.
Last month’s news of the intention to appoint the water utility Veolia’s CFO, Philippe Capron, was opposed by shareholders, resulting in his withdrawing his candidacy. With the principal point of concern being Capron’s lack of experience in the airline industry, a more focused approach for a suitable candidate ensued.
The result has seen Air France-KLM now pushing for Catherine Guillouard, the current head of Paris metro operator RATP, to take up the role of CEO, having previously worked for Air France, joining in 2007 and working her way up to become CFO and deputy head of human resources. She also has a seat on the board of Airbus SE and had previously worked as director at ADP, the airport operator for Paris.
According to French newspaper Le Figaro, President Emmanuel Macron’s office is handling the matter directly and should make a decision next week. However, the newspaper has not cited it sources and while Macron’s chief of staff, Alexis Kohler, met with Guillouard last week, there has been no response from Kohler’s office for requests for comments.


GE awarded US$437 million contract for Adaptive Cycle Engine

GE was awarded a US$437 million contract modification from the U.S. Air Force Life Cycle Management Center (AFLCMC) at Wright-Patterson Air Force Base June 29. The contract modification is for the execution of next generation adaptive propulsion risk reduction for potential air superiority applications.
GE, along with the U.S. Air Force, has matured the enabling technologies and architectures of adaptive cycle engines through a series of highly-successful design and test activities in the Adaptive Versatile Engine Technology (ADVENT), Adaptive Engine Technology Development (AETD) and Adaptive Engine Transition Program (AETP) efforts. Between 2007 and 2017, GE successfully designed and tested multiple three-stream adaptive fan configurations, an advanced compressor rig, two full-scale core engines, and a full three-stream adaptive cycle technology demonstrator engine. GE's understanding of adaptive cycle engines is based on this solid foundation of testing.

Pattonair to open Bangalore facility, selected for Access India Programme

Pattonair, a leading global supply chain provider to the aerospace industry, has been selected as one of the first group of UK companies to participate in the Access India Programme (AIP). Sponsored by the Government of India, the programme is the first of its kind to facilitate investments and market entry by small and medium scale companies in the UK into India.
As the latest stage in Pattonair’s global expansion, the Derby, UK headquartered company is establishing a wholly owned subsidiary and support facility in Bangalore, scheduled to become operational by January 2019. Pattonair’s strategy is to support customers where they operate, which speeds up supply and allows it to tailor services to each customer’s specific needs and performance goals.
Pattonair has serviced UTC in India since 2014 supplying C class parts to UTC’s Actuation Systems and Sensors & Integrated Systems (SIS) sites in Bangalore for major programmes such as 787, A350 and A320neo. Bangalore is the hub of India’s rapidly growing civil and military aerospace industry, which has attracted major companies including Airbus, Rolls-Royce and UTC. India boasts the world’s third largest aircraft order book of over 1000 aircraft after the USA and China.

Component Control

PPG family of aerospace sealants cured with ultraviolet light undergoing qualification

PPG has begun qualification and shop trials for a family of aerospace sealants that are cured on demand using ultraviolet (UV) light, allowing for substantial reductions in process time, waste and costs while increasing efficiency.
Based on PPG PERMAPOL® polymer technology and known in the industry as sealants cured on demand (SCOD), these proprietary sealants cure in seconds with the simple application of UV light, rather than hours or even days required for traditional-cure products. These new sealants are fuel-resistant, offer low shrinkage, are highly flexible and exhibit excellent physical properties.
PPG SCOD products are undergoing evaluation for qualification to the new SAE Aerospace Material Specification (AMS) 3102 written for UV-cured sealants. Several aircraft manufacturers have begun or will soon begin the evaluation and approval process for these products.
“The new UV-cured SCOD family of aerospace sealants based on proprietary PPG Permapol technology represents the next inspired step in aerospace sealant technology – one that promises to provide value, performance and cost savings to our customers,” said Bill Keller, PPG global segment manager, aerospace sealants.

WestJet reports June load factor of 83.6%

WestJet announced June 2018 traffic results with a load factor of 83.6%, an increase of 0.7 points year over year. Traffic increased 8.5% year over year, while capacity grew 7.5% over the same period. WestJet welcomed an additional 120,000 guests in June, a year-over-year increase of 6.0%.

Pentagon 2000

LCI delivers third new EMS AW169 to Elitaliana

Lease Corporation International (LCI), the aviation division of the Libra Group, has delivered a third new Leonardo AW169 helicopter to Elitaliana S.r.l. (Elitaliana) in Italy, fully equipped for Emergency Medical Services (EMS) operations.
The helicopter enters service with Elitaliana on a long term operating lease from LCI, and joins two other AW169s delivered by LCI in 2016 and 2017, operating from Elitaliana’s EMS bases in Rome and the Lazio region.
Elitaliana is Italy’s oldest helicopter company, having been founded in 1964 and has developed extensive operational experience in a wide range of areas including EMS, offshore helicopter transport, environmental monitoring, forest fire fighting and search and rescue.

DAE Board of Directors approve US$300 million bond repurchase program

The Board of Directors and Shareholders of Dubai Aerospace Enterprise (DAE) have approved a bond repurchase program of up to US$300 million. Repurchases will be conducted through transactions in the open market. DAE also announced that pursuant to this approval it had repurchased US$43 million of its bonds maturing in 2024.
DAE Managing Director Khalifa AlDaboos said: “Our bonds, in our opinion, are currently trading at prices and spreads not consistent with the Company’s market position and strong credit profile. The strength of our balance sheet and our projected cash position allow us to repurchase our bonds at a considerable discount and improve the gross leverage position of the Company.”
DAE currently has US$2.3 billion in bonds in US capital markets.


BOC Aviation reports operational transactions for second quarter ended June 30, 2018

BOC Aviation has reported its operational transactions for the second quarter ended June 30, 2018.
At the end of the second quarter BOC Aviation owned and managed a portfolio of 324 aircraft, with an average aircraft age of 3.0 years and an average remaining lease term of 8.3 years for owned aircraft fleet, weighted by net book value.
At the end of the quarter BOC Aviation had an order book of 163 aircraft, took delivery of 15 aircraft (including one acquired by an airline customer on delivery), signed 16 lease commitments
and had a customer base of 88 airlines in 35 countries and regions in the owned and managed portfolios.
The company sold ten owned and one managed aircraft, the managed fleet comprised 29 aircraft and the total number of aircraft delivered and scheduled to be delivered in 2018 is 58, all of which have been committed for lease and six of which have been or are expected to be acquired by airline customers on delivery.

Special Purpose Operator status awarded to UK flight test company

EASA (European Aviation Safety Agency) Special Purpose Operator (Part-SPO) status has been achieved by Nova Systems UK, an arm of the Australian Nova Group.
Using its EC135 helicopter G-NSYS, the Nova team has worked hard to deliver the safety systems and organisational structures required by the Agency. Nova now adds this important operating declaration to its existing Part 21 Flight Test capability.
This award means that Nova Systems can utilise its aircraft to deliver an extensive range of commercial aerial work operations, including specialised activities in industries such as agriculture, construction, photography, surveying, observation, patrol and aerial advertisement.
Stephen Camporeale, CEO of Nova Systems UK said: “The ability to deliver a broader range of operations marks a step-change in Nova Systems UK aerial delivery capability. With our commitment to the highest levels of professional project delivery and efficiency we continue to aim to simplify airborne test in the interests of our customers.”
These important additions enable Nova Systems to provide customers with end-to-end airborne flight test and evaluation services, which are not wholly reliant on major aircraft modifications. These services can range from the airborne assessment of pilot assistant devices, such as airborne tablets through collision avoidance equipment to the delivery of electro optical or electronic assessment of ground targets or warships.


LHT signs component support contract with Avianca Brasil

The Brazilian airline Avianca Brasil and Lufthansa Technik have signed a comprehensive Total Component Support (TCS®) contract, covering repair and overhaul of components for the fleet of Avianca Brasil. The fleets consist of Airbus A320 family and Airbus A330 long-haul jets. Component support of the Airbus fleet will be ensured through a home base stock to be established in São Paulo, Brazil.
In addition, Lufthansa Technik will support Avianca Brasil in the build-up of in-house capabilities, for example for the maintenance and repair of A320 emergency slides and other safety equipment. As part of the contract, Lufthansa Technik will also oversee the production of Airbus A320neo aircraft Avianca Brasil has on order. By performing independent checks during critical phases of the aircraft production, Lufthansa Technik's Aircraft Production Inspection Program (APIP) ensures enhanced quality.

GA Telesis

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


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
twitter linkedin