Wednesday, October 31st, 2018



U.K.’s Brexit budget sees hike in long-haul flight levy - aviation industry hits out

Monday’s annual U.K. budget has seen the Chancellor of the Exchequer, Philip Hammond, freeze levies on short-haul flights, but increase levies on long-haul flights in line with inflation. The aviation industry has already expressed anger at the decision, indicating that it makes a mockery of the ambition to become a ‘Global Britain’ after leaving the European Union.

Speaking about the new levy for long-haul flights, IAG, owner of British Airways, commented that: "It's ironic that this Brexit budget has undermined Britain's global competitiveness by upping Air Passenger Duty (APD), the world's highest aviation tax, again. We want to offer more flights to key trading markets, like our European competitors, but APD stifles route development to new emerging markets. If Britain wants to compete on the global stage post Brexit, it should be scrapped now."
IAG also said that British Airways passengers paid £682 million in APD last year.

A spokesperson for Virgin Atlantic said customers were already paying a levy twice that of any other EU nation, to leave the UK: "APD now accounts for more than a quarter of our lowest fare."
Tim Alderslade of Airlines UK commented that the planned tax increase was sending the wrong signal:
"APD is nothing but a tax on Global Britain."

Hammond said short-haul APD rates for 2020-21 would not rise, remaining at the same level as they have been since 2012. For long-haul they will increase by £2.00, while the rates for those travelling in premium economy, business and first class will increase by £4.00. (£1.00 = US$1.27 at time of publication.)


Liebherr-Aerospace enlarges footprint in China

Liebherr-Aerospace is continuing to expand its presence in China. The company is growing and strengthens further its support to COMAC and to the customers of the Chinese aircraft manufacturer by different measurements at its liaison and customer service center in Shanghai.

The Chinese aviation industry is developing rapidly and so are the activities of Liebherr-Aerospace locally in the People’s Republic. In line with the Liebherr philosophy of promoting organic growth, the company is committed to a long-term, reliable cooperation with its customers and partners in China.

The liaison and customer service center of Liebherr-Aerospace in Shanghai with a total floor area of 3,700 m² offers services in maintenance, repair and overhaul. These include, for example, the maintenance of bleed air and air conditioning systems including air cycle machines. In addition, the center also offers the dynamic testing of components for air conditioning and pneumatic systems (ATA 21, 36) for Airbus single aisle and long range aircraft, Bombardier and Embraer aircraft and COMAC’s ARJ21-700. Moreover, Liebherr-Aerospace China can also service flight control and hydraulic components (ATA 27, 29).

Recently, new capabilities for the repair of ARJ21 components were added. Furthermore, the technical support, engineering and flight test support teams were expanded and provide enhanced support for the operation of the ARJ21 as well as for the support for the C919 flight test program.

The continuous growth of Liebherr-Aerospace in China can also be seen in the positive development of the joint venture of Liebherr-Aerospace Lindenberg GmbH (Germany) and LAMC (AVIC Landing Gear Advanced Manufacturing Corporation), called Liebherr LAMC Aviation (Changsha) Co., Ltd. which was founded in 2012 to develop and manufacture landing gear systems for the Chinese aerospace industry and the international market.

The number of Chinese suppliers is to be gradually increased so that the joint venture can continue to remain internationally competitive with an increasingly independent location.

A further important part in Liebherr’s strategy in China is the cooperation between Nanjing Engineering Institute of Aircraft Systems (NEIAS) and Liebherr-Aerospace Toulouse SAS (France) with the aim of designing and producing components for the C919 air management system.

Royal Aero

Lufthansa's third-quarter operating profits down

Lufthansa Group achieved an adjusted EBIT of €2.4 billion for the first nine months of 2018 – a 7.7% decline on the prior-year period which the company says, is primarily attributable to the integration costs at Eurowings.
Adjusted EBIT margin for the period amounted to 8.8%. Nine-month results were also burdened by a €536 million rise in fuel costs, an increase in the costs incurred in connection with flight delays and cancellations, and higher maintenance expenses.

“We expect to see our full-year costs increase by more than €1 billion in 2018 due to fuel costs and the extra expenses incurred from delays and cancellations alone,” says Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. “But despite this, we achieved an Adjusted EBIT of €2.4 billion for the first three quarters of this year, the second-best nine-month result in our history. And had it not been for the losses at Eurowings, we would have posted another record earnings result. This is a clear testament to our sustainable financial strength – a strength that we have demonstrated even under challenging conditions this year.”

Lufthansa Group generated total revenues of €26.9 billion in the first nine months of 2018. Total revenues increased by 6% on the prior-year period, while traffic revenues were up 7%. As a result of the first-time adoption of the new IFRS 15 accounting standard, the reported growth of total revenues to €26.9 billion was only 0.5%, while the reported traffic revenues declined by 1% to €21.1 billion.

GA Telesis Component Solutions Group (CSG) announces acquisition and disassembly of Airbus A319-200 aircraft

GA Telesis has reported the acquisition of an Airbus A319-200 (MSN 1541) equipped with CFM56-5B engines.

The disassembly is taking place in the United Kingdom, where key components will then be routed to its UK and US-based distribution facilities.

The inventory will be used in support of GA Telesis’ iGEAR, SNAP and ACCESS programs as well as day-to-day sales requirements of the company’s airline and MRO customers worldwide.

“We have a substantial pipeline of airframe and engine inventory scheduled in the coming months to add to our recent 747 and 777 teardowns,” said Jason Reed, President of GA Telesis Component Solutions Group. “In addition to the A319, the company has also targeted four 777s and one A330 that will be disassembled by Q1 2019 to ensure success in supporting our customer’s operational performance,” he added.


Embraer posts third quarter loss of US$21 million

In the third quarter of 2018 (3Q18), Embraer has delivered 15 commercial and 24 executive (17 light and 7 large) jets, compared to the 25 commercial and 20 executive (13 light and 7 large) jets in 3Q17;

The Company’s firm order backlog was US$ 13.6 billion at the end of 3Q18, including contracts of the Services & Support segment.

Embraer reported EBIT and EBITDA in 3Q18 were US$45.4 million and US$104.8 million, respectively, yielding margins of 3.9% and 9.1%. On a year-to-date basis, the Company’s reported EBIT and EBITDA in 2018 were US$54.1 million and US$238.4 million, respectively.

The year-to-date figures include the negative impact of a non-recurring special item of US$127.2 million related to additional costs on the KC-390 development contract in 2Q18 resulting from the incident with prototype aircraft 001 in May.

3Q18 net loss attributable to Embraer shareholders and loss per ADS were US$(21.3) million and US$ (0.12), respectively. Adjusted net loss (excluding deferred income tax and social contribution) for 3Q18 was US$(29.1) million, with adjusted loss per ADS of US$(0.16).

C&L Aviation Group receives STC certification for Saab 340 ADS-B In/Out solution

C&L Aviation Services (C&L), a C&L Aviation Group company, has received STC approval by the FAA for its Saab 340 A&B ADS-B solution. The STC certifies the installation of dual Garmin GTX-3000 transponders and uses either the Garmin GDL-88 SBAS/WAAS GPS or Universal Avionics SBAS/WAAS FMS GPS’s including the UNS-1Ew, UNS-1Espw, UNS-1Lw and UNS-1Fw FMS systems to comply with the FAA Automatic Dependent Surveillance-Broadcast-Out (ADS/B-Out) mandate requiring compliance before January 1, 2020.

C&L completed the installation and the required FAA in-flight testing in early October. There are many customers that were eagerly waiting for this certification in order to place their orders. EASA certification will follow shortly.

In addition, the Garmin Flight Stream 110/210 provides wireless ABS/B-In capability from the GDL-88 to provide subscription-free Flight Information Service-Broadcast (FIS-B) Weather and Traffic Information Service-Broadcast (TIS-B) traffic on compatible displays or PEDs. This STC can also be used for transponder/GPS pairing in other Part 23 and Part 25 aircraft.

Magellan Group

Air BP adds Salvador International Airport to its network

Air BP, the international aviation fuel products and services supplier, has bolstered its network in Brazil with the addition of Salvador International Airport (SSA/SBSV), effective immediately.

Operations at the airport will be managed by Air BP Petrobahia, a joint venture between Air BP and Brazilian company, Petrobahia. Air BP Petrobahia has invested US$3 million in enhancing fuelling infrastructure and training at the airport and will supply Jet A-1 fuel to both general and commercial aviation customers.

Salvador International is a key entry point for customers visiting Brazil from Europe and the USA. It complements Air BP’s existing location at Recife International (REC/SBRF), enabling greater choice for customers when travelling within the region.

WestJet reports third quarter net earnings of CA$45.9 million

WestJet has released its third quarter results for 2018, with net earnings of CA$45.9 million, down 66.3%. This result compares with net earnings of CA$135.9 million, reported in the third quarter of 2017.

Total revenue increased 3.8% compared to the previous year. Year-to-date, WestJet recorded net earnings of CA$62.3 million.


Lufthansa Technik Puerto Rico receives approval for Airbus A320neo maintenance

Lufthansa Technik Puerto Rico, a wholly owned subsidiary of Lufthansa Technik AG, has received Federal Aviation Administration (FAA) approval to carry out maintenance work on the Airbus A320neo.

For Lufthansa Technik Puerto Rico, based at Rafael Hernandez Airport Aguadilla in Puerto Rico, this approval marks a significant milestone, since it underlines the company's position as a center of excellence for the Airbus A320 family. An investment of some US$2.8 million was required for the training, tools and the material necessary for the maintenance of the new aircraft type.

CCO Juha Järvinen to leave Finnair at the end of the year

Juha Järvinen, Chief Commercial Officer and a member of the executive board at Finnair, will leave the company on December 31, 2018. He will take on a position at Virgin Atlantic Airways in London.

The search for his replacement starts immediately.


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


MRO Asia
November 6 - 8, 2018 – Singapore

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

Inventory Optimization & Supply Chain Management Seminar
February 19 - 20, 2019 – Palma de Majorca, Spain

IATP Conference 2019
March 9 - 13, 2019 – Athens, Greece

Saudi International Airshow 2019
March 12 - 14, 2019 – Thumamah Airport, Riyadh, KSA
twitter linkedin