Friday, July 20th, 2018



Ethiopian Airlines confirms it is eying stake in Eritrean Airlines

In a remarkable political turnaround since Ethiopian Prime Minister Abiy Ahmed took office in February after the resignation of Hailemariam Desalegn, a generation of hostilities between Ethiopia and Eritrea and the long-running border war has come to an end. The result has seen the first commercial flight between the two countries for twenty years with two 90-minute flights between Addis Ababa in Ethiopia and Asmara in Eritrea.
On board the plane was Tewolde Gabremariam, CEO of Ethiopian Airlines. During his visit, he spoke with the CEO of Eritrean Airways, whose fleet currently comprises a leased Boeing 737. Having confirmed Ethiopian Airlines interest in taking a stake in the neighboring airline, the size of investment will depend on the results of fact-finding missions.
According to Gabremariam: “It is beyond opening routes. This one is different because politically, economically and socially, the flight we flew yesterday is going to make radical changes between the peoples of Ethiopia and Eritrea. It is a game changer,” adding that based on what he had already seen, Ethiopian Airlines will begin flying twice daily to Asmara.
Gabrremariam also stated that: “The demand is heavy not only because of Eritrea and Ethiopia but also demand from Eritreans living in Europe, America and so on who are eager to visit friends and relatives in Asmara.
“Connections were (previously) not smooth for them to come back home. They have (had) to go through Dubai or Istanbul and it is not convenient. Now they will have direct flights from the U.S., Canada and Europe.”
Ethiopian Airlines has been buying shares in other African airlines, a strategy aimed at gaining a competitive advantage against rivals such as the major Gulf carriers.


Airbus wins new business for 431 commercial aircraft at Farnborough Airshow 2018

Airbus has announced strong commercial aircraft business during the Farnborough Airshow 2018, with successes across its broad product portfolio – including the new A220 and A330neo families.
Airbus came into the show already with 177 Single Aisle and 84 Widebody orders in 2018, complemented by a pre-show order for 60 A220-300s, the latter bringing the pre-show intake.
During the show the company won further new business for 431 aircraft (93 firm orders and 338 MoUs). These 431 commitments comprise 60 A220-300s, 304 A320 Family aircraft, 42 A330neos and 25 A350 XWBs. Notably, the 42 commitments for the new A330neo includes both the -800 and -900 models – a strong endorsement at the show for this Family.
Following these announcements at Farnborough, Airbus increased its grand total for the year to 752 aircraft (354 firm orders and 398 MoUs). The 752 commitments in 2018 comprise: 120 A220s; 481 A320 Family; 56 A330 Family, 75 A350 Family and 20 A380s.
Eric Schulz, Airbus Chief Commercial Officer said: “Our year to date and our end of show commitments confirm the strong market appetite for all our leading aircraft product families, from our newest member, the 100-150 seater A220, complemented by our A320 Family up to 240 seats, seamlessly connected to our widebody family with the all-new A330neo and A350 XWB which span from 250-370 seats. At the top end, our A380 is now opening new opportunities for the second-hand market”.
“I am especially pleased about the strong response that our Widebody Family is enjoying. Over 150 orders and commitments for our A330/A350/A380 offerings in 2018 are a strong endorsement. At Airbus, we are positive about our future – in Single Aisles, Widebodies and the Middle of the Market. We are right there with the right aircraft.”

First ground test of Safran’s hybrid electric propulsion system

Safran has passed a major milestone in its hybrid electric propulsion roadmap with the first ground test of a distributed propulsion system. The test run took place at a Safran Helicopter Engines test facility near Pau-Pyrenees Airport, in France.
In a distributed hybrid electric propulsion system for aircraft, a turbo-generator (a gas turbine driving an electrical generator) is coupled to a bank of batteries. This system powers multiple electric motors turning propellers to provide propulsion. The power is efficiently distributed by a new-generation power management system, and the motors are controlled by a fully-integrated smart power electronics assembly.
Several operating modes were tested and validated during this first series of tests, with the electric motors powered only by batteries or by a combination of batteries and turbo-generator. The system generated 100 kW of electrical power.
The demonstration was conducted by Safran Helicopter Engines, Safran Electrical & Power and Safran Power Units, in conjunction with Safran Tech, the Group's research & technology center. It was carried out according to Safran's roadmap for the development of hybrid propulsion solutions.
Hybrid propulsion systems should contribute to the emergence of new VTOL (vertical takeoff and landing) and STOL (short takeoff and landing) aircraft, by enhancing their flight capabilities and expanding their range of missions.
Safran's hybrid electric propulsion roadmap is focused on bringing these technologies to the market by 2025.

CALC signs CFM engine orders valued at US$550 million

Hong Kong-based China Aircraft Leasing Company (CALC) has selected CFM International’s advanced LEAP-1A engine to power 17 firm and up to 50 option new Airbus A320neo family aircraft.
In addition, the leasing company finalized an order for CFM56-5B engines to power three firm, nine option Airbus A320ceo aircraft. These two agreements are valued at US$550 million at list price.


CTT Systems announces Cair™ VIP order for ACJ320neo

CTT SYSTEMS AB (CTT), a leader of aircraft humidity control systems, has received Cair™ VIP Inflight Humidification system order from Jet Aviation for one Airbus ACJ320neo.
This completion will feature increased humidity in the entire aircraft cabin, which requires support from two humidifiers. This award is CTT Systems’ 90th order for Airbus ACJ/Boeing BBJ VIP aircraft.
“Air at high altitudes is cold and less able to retain moisture,” says Christoph Fondalinski, director of Project Management at the Jet Aviation Basel Completions Center. “Humidification greatly increases the comfort and well-being of passengers on board and is a highly valued cabin feature in our most prestigious VIP completions. We chose CTT’s Cair™ system because we know it to be the most robust and reliable humidification system on the market.”

T3 Aviation Technical Services (T3Tech) launches under leadership of industry experts

Cusco Aviation, CAG Aviation Consulting and Hancuff Aviation have joined forces to form a T3Tech, an Aviation Technical Services group, under the Leadership of Aviation Technical Experts Manuel E. Cordero, Cesar Guedez and Robert Hancuff. Cordero, Guedez and Hancuff bring over 60 years of combined solid experience in the aviation technical services industry, having had senior level tenures at worldwide renown aircraft leasing companies and airlines.
The company has offices in the San Francisco Bay Area, California; Miami, Florida; and Seattle, Washington with satellite locations in Europe, Asia and Latin America. T3Tech has an experienced and field-proven team of highly qualified aircraft technical services professionals available worldwide 24/7, 365 days a year. T3Tech’s mission is to provide a complete suite of technical services to airlines and aircraft leasing companies.
Its services include, but are not limited to:
1. Complete Aircraft Delivery and Redelivery Solutions for both Airline and Lessors
2. A complete and dedicated Technical Services Platform for Aircraft Lessors
3. Technical Asset Management
4. Technical on-site inspections (technical review of airlines, mid lease review of aircraft, scanning services, and aircraft repossessions)
5. Airframe and Powerplant Records Review and Scanning services.
6. Management of Airframe and Powerplant Maintenance Events and Shop Visits
7. Pre-purchase Technical Inspections

Ver.Di union recognised for Ryanair German-based cabin crew

Ryanair has signed its third cabin crew union recognition agreement with Ver.di Union on July 19. Ver.di will now be the representative body for all directly employed Cabin Crew operating on Ryanair aircraft in Germany.
This cabin crew recognition agreement follows extensive negotiations with Ver.di and covers the German market. This agreement follows Ryanair’s first cabin crew recognition deal with the Italian ANPAC/ANPAV unions and second cabin crew agreement with UNITE union in the UK.

TP Aerospace

Boeing announces US$100 billion in orders and commitments

At the close of the industry portion of this year's Farnborough Air Show, Boeing announced a total of US$98.4 billion in orders and commitments for commercial airplanes at list prices and US$2.1 billion in commercial and defense services orders and agreements.
Boeing marked an outstanding week for order capture in commercial aviation, with customers announcing 673 orders and commitments in total, reflecting a continued resurgence in demand for freighters and strong order activity for the 737 MAX and 787 passenger airplanes. Boeing secured 48 orders and commitments for the 777F, five for the 747-8F, reflecting continued strengthening in the cargo market globally.
Customers also continued to demonstrate a strong preference for Boeing's passenger airplane portfolio, with 52 orders for the 787 and 564 for single-aisle 737 MAX, including a major commitment from VietJet for 100 airplanes and strong demand for the largest variant of the MAX family, with 110 orders and commitments for the 737 MAX 10.
On the services side of the business, Boeing secured commercial and government customers including Antonov, Atlas Air, Blackshape, Cargolux, Emirates, EVA Airways, GECAS, Hawaiian Airlines, International Water Services, Malindo Air, Okay Airlines, Primera Air, Royal Netherlands Air Force, United States Air Force, WestJet and Xiamen Airlines.

SIA Engineering posts group profit of SG$40.5 million for first quarter 2018-19

SIA Engineering Group has recorded a profit attributable to owners of the parent of SG$40.5 million for the quarter ended 30 June 2018, an increase of SG$3.8 million or 10.4%, mainly from an increase in share of profits of associated and joint venture companies, partially offset by a decrease in operating profit.
Operating profit of SG$10.2 million was SG$8.5 million or 45.5% lower than the same quarter last year. Revenue at SG$257.7 million was SG$15.1 million or 5.5% lower year-on-year, mainly due to lower airframe and fleet management revenue. Expenditure decreased year-on-year by SG$6.6 million or 2.6% to SG$247.5 million, mainly due to an exchange gain of SG$2.8 million in the current quarter against an exchange loss of SG$1.8 million in the same quarter last year, and lower subcontract services costs.
Share of profits of associated and joint venture companies increased SG$11.3 million or 53.6% to SG$32.4 million, contributed by an SG$11.8 million increase in share of profits from the engine and component centres. Basic earnings per share was 3.62 cents for the current quarter.

AirAsia X orders 34 more A330neo

AirAsia X has placed an order with Airbus for an additional 34 A330neo widebody aircraft. The order was announced at the Farnborough Air Show in the UK by Kamarudin Meranun, AirAsia Co-Founder and AirAsia X Group Chief Executive Officer, Tan Sri Rafidah Aziz, Chairman of AirAsia X and Eric Schulz, Airbus Chief Commercial Officer.
The latest agreement reaffirms AirAsia X’s position as the largest airline customer for the A330neo, with the total number of aircraft ordered by the airline increasing to 100. All the A330neo aircraft ordered by AirAsia X are the larger A330-900 model.


First half 2018 sees Prague airport passenger numbers improve 10%

Václav Havel Airport Prague served 7,463,975 passengers in the first half of 2018, which means a 10% increase compared to the same period last year. As usual, the largest number of passengers traveling from Prague went to the UK. The country with the highest increase in the number of checked-in passengers was Spain and for individual destinations, it was Barcelona.
The largest number of travelers over the first six months of the year flew to London, which meant a 6% inter-annual increase in the number of checked-in passengers. Paris came second, followed by Moscow, Amsterdam and Milan. The fastest growing destination in terms of passenger count was Barcelona (+51 %) thanks to the substantially increased number of flights. As for countries, UK ranked first with 12% growth, followed by Italy, Russia, Germany and France. The record holder of countries in terms of increased checked-in passengers is Spain (+40%).
New destinations are planned for the winter season of 2018. These include new Ryanair flights to Marrakesh, Paris/Beauvais, Eilat, Pisa and Amman; a new EasyJet flight to Belfast and a higher number of British Airways flights to London/Heathrow.

Aeromexico signs US$2.3 billion support agreement for LEAP-1B fleet

Mexico’s flag carrier, Aeromexico, has signed a 12-years Rate Per Flight Hour agreement with CFM Services to support a minimum of 128 LEAP-1B engines that power its fleet of Boeing 737 MAX 8 and MAX 9 airplanes.
The order is valued at US$2.3 billion U.S. at list price. RPFH agreements are part of CFM Services flexible support offering. Under the terms of the agreement, CFM will support the fleet on a dollar per flight hour basis.
Aeromexico, which was founded in 1934, is a long-time CFM customer and took delivery of its first CFM56-7B-powered Next-Generation 737 in 2003. Today, the airline operates as three new 737 MAX 8 airplanes, as well as a fleet of more than 52 CFM56-powered Next-Generation 737s.

Embraer and Kenya Airways sign comprehensive spare parts support contract

Embraer and Kenya Airways announced the signing of a multi-year contract for the Embraer Collaborative Inventory Planning (ECIP) program. Under this contract, Embraer will take over the planning and replenishment of a sizeable portion of Kenya Airways’ spare parts stock covering the 15 Embraer E190 aircraft operated by the airline.
ECIP is part of a suite of services that Embraer offers or has under development to support the worldwide growing fleet of Embraer aircraft through TechCare, the new Embraer platform that assembles the entire portfolio of products and solutions to deliver the best experience of services and support. Main benefits of program include guaranteed availability of parts, optimised inventory with reduced inventory holding cost, fixed spare parts prices, short replenishment lead times and a door-to-door delivery service.
Introduced in 2002, the ECIP program takes advantage of Embraer’s large expendables inventory, global purchasing power, and sophisticated software to accurately plan and stock contracted expendables at the best possible pricing.

British Airways signs commitment for three 777 airplanes

Boeing and British Airways have signed a commitment for three 777-300ER (Extended Range) airplanes. British Airways will take the 777s on an operating lease with a leasing company.
British Airways is one of the world's largest operators of the long-range jet, operating 58 777-200ER and 777-300ER airplanes across its global network. British Airways also flies 28 787 Dreamliners and more than 30 747-400s.

AviTrader CS

Doric announce first secondary market transaction for an Airbus A380

Following many months of negotiation and preparation, Doric’s Asset Management team has announced the first ever secondary market transaction for an Airbus A380. It comes almost 11 years after the first A380’s maiden commercial flight.
The lease agreement with the Portuguese wet lease operator Hi Fly for the A380 (MSN 006) began in July 2018 and has a term of nearly 6 years. Doric’s Asset Management was able to arrange a direct handover of the aircraft from the previous operator to Hi Fly.
The freshly painted A380 with a special livery “save the coral reefs” and a completely refurbished cabin has been presented to visitors from the aerospace industry and the public during the Farnborough International Airshow. The aircraft arrived in Farnborough from Malta today.
Its exhibition at one of the world’s largest airshows underscores the attractiveness of the A380 as an air transport solution also for the next generation of operators. Doric is confident that the experience gained over the past months with this transaction will help to establish a solid secondary market for the Airbus A380 in the future.

easyJet raises profit forecast

easyJet, Europe’s second-largest airline has forecast that the low-cost carrier’s earnings for the fiscal year (end of September) could soar by as much as 45 percent. It puts the better-than-expected results mainly down to the demise of Monarch Airlines at the back end of last year, and continued strike action at Air France.
Despite having to cancel 2,606 flights during the third fiscal quarter, a massive rise compared to 314 cancelations for the same period last year, easyJet is predicting a pre-tax profit for the 12-month period up to the end of September in the region of £550-590 million (US$720-770 million), up from May’s forecast of £530-580 million.
Despite the high level of flight cancelations in the third quarter due to air traffic control restrictions and industrial action, as well as severe weather conditions, the overall resultant losses equating to approximately £25 million (US$33 million), the carrier confirmed that this had been partly offset by strong demand for holidays.
easyJet also confirmed at the Farnborough International Airshow that it is due to get a boost from new larger and more cost-effective planes that will allow it to increase passenger numbers to airports where slots are close to full.
EasyJet is due to receive 30 A321neos, which it will operate on popular routes between London Gatwick and tourist destinations in Spain, including Palma and Malaga.


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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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