Thursday, October 25th, 2018



IATA outlines urgent priorities to minimize Brexit impacts

The International Air Transport Association (IATA) has called for urgent action by the UK and the European Union to put in place contingency planning for the continuation of air services in the event of a ‘no-deal Brexit’, and to move much faster to bring certainty to three critical air transport issues: the uninterrupted continuation of air connectivity, the framework for regulating safety and security, and he policies and processes needed for efficient border management

“These are the most critical areas because there are no fallback agreements such as the WTO framework available in a ‘no-deal’ Brexit scenario. Without any contingency planning being made transparent to the industry, the risks of not addressing these issues could mean chaos for travelers and interrupted supply chains. With less than six months to go, we have little more certainty than we did in June 2016,” said Alexandre de Juniac, IATA’s Director General and CEO.

Even in the best-case scenario, where a Brexit transition phase is agreed for the period after March 2019, a high degree of uncertainty and risk to air services remains. A no-deal or “hard” Brexit outcome, without an agreement for a transition period, is likely to lead to significant disruption to air services. Moreover, the lack of transparency concerning any contingency planning for this scenario has left airlines completely in the dark as to what measures to take.

“The EU and UK have a responsibility to millions of their citizens who depend on reliable air transportation. The goal should be a comprehensive air services agreement that does not step backwards from the connectivity existing today. But with the possibility of a ‘no deal’ Brexit still on the table this late in the game, it is now essential that the EU and UK civil aviation authorities plan for contingency arrangements to maintain a minimum level of connectivity, which is vital for people and for business. This has to be one of the most important Brexit considerations. A backstop contingency plan to keep planes flying after March must be published, and quickly,” said de Juniac.


Safran on track to meet 2018 outlook

Safran has reported that third-quarter 2018 adjusted revenue was €5,348 million, an increase of 45.4% on a reported basis, including a contribution of €1,200 million from Zodiac Aerospace. On an organic basis, adjusted revenue grew 11.4%.

First nine-month 2018 adjusted revenue was €14,854 million, up 30.9% on a reported basis year-on-year, including a seven-month contribution from Zodiac Aerospace of €2,716 million. Adjusted revenue increased 10.5% on an organic basis.

First nine-month 2018 civil aftermarket revenue was up 14.7% in USD terms, including an increase of 16.4% in Q1 2018, 8.8% in Q2 2018 and 19.2% increase in Q3 2018. Spare parts sales and quarterly variations in revenue recognition for services drove the growth year-to-date. Safran confirms its assumption for civil aftermarket to increase in the 10-12% range based upon the positive momentum of spare parts sales and a slow-down in revenue recognition for services in Q4 2018.

Compared to its estimated restated key metrics for the application of IFRS 15, Safran expects adjusted revenue to grow on an organic basis in the range 7% to 9%. At an estimated average spot rate of US$1.21 to the Euro in 2018, adjusted revenue is expected to grow in the mid-single digits. Adjusted recurring operating income to grow around 20% at a hedged rate of US$ 1.18 to the Euro.
Free cash flow to be comfortably above 50% of adjusted recurring operating income, an element of uncertainty being the rhythm of payments by state-clients.

The 2018 outlook notably benefits from a stronger civil aftermarket growth than the secular high single digits growth trend, from gross margin improvement of CFM56 OE and from advance payments of export contracts.

Ryanair signs agreement with Spanish pilot union SEPLA

Ryanair has signed a recognition agreement with the Spanish pilot union SEPLA, to cover all of Ryanair’s directly employed pilots in Spain. Negotiations with SEPLA on a full Collective Labour Agreement (CLA) under Spanish Law will now commence in early November and Spanish Labour Law will apply to all Ryanair pilots in Spain by no later than 31st January 2019.

This follows other agreements signed with SPAC in Portugal, BALPA in the UK and ANPAC in Italy, covering all of Ryanair’s directly employed Portuguese, UK and Italian Pilots.

TP Aerospace

EASA approves AerTrak ADS-B Out system for Boeing 737 NG series aircraft

AerSale®, a global supplier of mid-life aircraft, engines, used serviceable material, and MRO services, has reported that the European Aviation Safety Agency (EASA) has approved the company’s AerTrak™ ADS-B Out system on Boeing 737 NG series aircraft (10065422).

Earlier this year, the Federal Aviation Administration (FAA) approved AerTrak for Boeing 737 NG series aircraft (ST04009NY) and Boeing 757-200 series aircraft (ST04011NY) to comply with the FAA’s Automatic Dependent Surveillance-Broadcast (ADS-B) Operations rule. The Boeing 757-200 series aircraft Supplemental Type Certificate (STC) is now pending EASA and National Civil Aviation Agency of Brazil (ANAC) validation.

Royal Thai Air Force receives two new H225Ms

The Royal Thai Air Force (RTAF) has taken delivery of its seventh and eighth H225M (previously known as EC725) multirole utility helicopters.

Since 2012, the RTAF has placed orders for a total of 12 H225Ms under its fleet modernisation programme. Belonging to a contract signed in 2016, these new additions will join the air force’s existing fleet of six H225Ms for combat search and rescue, search and rescue flights and troop transport missions.

The 11-ton-catergory twin-turbine H225M is relied upon as a force multiplier by many air forces worldwide thanks to its outstanding endurance and fast cruise speed. Featuring state-of-the-art electronic instruments and the renowned 4-axis autopilot system, the multirole helicopter may be fitted with various equipment to suit any role. Close to 90 units are currently in service in six countries across the globe, surpassing the 100,000 flight hour milestone.


Reiner Winkler to remain MTU Aero Engines’ CEO for another five years

MTU Aero Engines AG’s Supervisory Board has extended the contract of CEO Reiner Winkler by five years until September 30, 2024. The decision was made by a unanimous vote at the Supervisory Board’s meeting on October 24, 2018.

Klaus Eberhardt, Chairman of the Supervisory Board, said: “Reiner Winkler has done an excellent job running MTU over the past few years and has played a key role in boosting the company’s value. This benefits MTU’s employees, customers and shareholders. The Supervisory Board is convinced that under the leadership of Winkler, MTU’s Executive Board will continue to successfully shape the company’s future.

Winkler has been the company’s CEO since January 2014 and previously served as its Chief Financial Officer since May 2005 when MTU went public.

thyssenkrupp Aerospace new Moroccan location taking off this year

Morocco's aerospace industry is booming. With an annual growth rate of over 15%, it is a significant driving force behind the nation's economy. This encouraging development is also fueling demand for local material suppliers and service providers. "This is a trend we identified early on, and we will be commissioning our highly modern materials processing and logistics center in Casablanca before the end of the year, so that we can supply our local customers with the required materials and services," explains Patrick Marous, CEO thyssenkrupp Aerospace.

"It is not only the French aviation industry that is investing in Morocco and we are pleased to be able to show our presence there for our customers from France and to further expand our global partnerships there as well", said Eric Cornilleau, Managing Director thyssenkrupp Aerospace France.

On around 3,500 m² (warehouse, production hall and offices) located in Ouled Salah area, between Casablanca downtown and the airport, up to 20 new jobs will be created to address customer wishes and requirements. Besides the storage of materials such as aluminum, steel and copper in various shapes and alloys, the center will also process materials. Modern machinery cuts the materials precisely to customer specifications for just-in-time delivery to the customer´s facilities.


Everest Events and AviTrader launch joint event series

UK based Everest Events and AviTrader agree to cooperate in the field of organizing aviation events and seminars. The venture will focus on seminars about supply chain, inventory management and technical cost reduction. The first seminar with the topic “Inventory Optimization & Supply Chain Management” is already scheduled in February 2019. All events and seminars are structured to bring together industry experts and experience.

Caroll Everest, Managing Director of Everest Events Limited says: "I am delighted to be working collaboratively with AviTrader, with whom we have built a strong business relationship over many years, to bring a new aviation event for those involved in the Aviation Supply Chain and Inventory Management.

Torsten Tamm, Managing Director of Germany based AviTrader CS GmbH continues: “We are very happy about this cooperation with Everest Events. Entering the event business is a logical process in the continuing growth of service offering under the AviTrader brand. With Caroll Everest we found the right partner with decades of experience in organizing aviation events. Our events will be the perfect place to learn, sharing experience and networking.”

Vancouver, Canada based AviTrader Publications Corp. has been established in 2004 as an aviation news publication company. Today it is one of the leading companies delivering real time digital news to the aviation professional. Through it´s Munich, Germany based branch AviTrader CS GmbH, AviTrader provides consulting services to airlines around the globe.

Bombardier OEM

GA Telesis Engine Services achieves Directorate General of Civil Aeronautics certification in Mexico

GA Telesis Engine Services (GATES) has achieved Directorate General of Civil Aeronautics Certification in Mexico (DGAC).

DGAC approval provides GATES with access to a major MRO market for CFM56 engines and will allow the company to develop and expand its customer base in the region. GATES has previously been approved by the Federal Aviation Authority (FAA), European Aviation Safety Agency (EASA), Transport Canada Civil Aviation (TCCA), the Civil Aviation Administration of China (CAAC) and General Authority of Civil Aviation in Saudi Arabia (GACA).

Airbus Hamburg plant faces further delays for delivery of A321 jets

Having been subjected to the slow delivery of engines for the previous two years, Airbus is now struggling to deal with their rapid arrival. According to Reuters, internal snags have further added to the delays, which means the plane manufacturer is also finding it difficult to meet its target of delivering 76 single-aisle jets per month for the final quarter of 2018, a monthly figure 9.6 per cent above its previous delivery record. Airbus’ delivery target for 2018 was 800 units.

With production running faster than ever, it hasn’t helped that Airbus has chosen this as the time to offer a new variant of the A321. The A321neo ACF version offers more-flexible cabins but requires complex configuration. An Airbus spokesman confirmed the customized new A321neo version, in combination with pressure created through the increase in output and the backlog of jets still waiting to be delivered, had "led to some rescheduling of aircraft deliveries."

It is understood that quality problems in Hamburg have also contributed to delays, which are a headache for new sales chief Christian Scherer as airlines wait for deliveries. For many airlines, the financial pain is acute since oil prices have bounced back to US$80.00 dollars: the target market the A321neo and similar fuel-saving models were designed for.

Hamburg's problems have highlighted the operational issues at stake as Airbus’ Guillaume Faury gets ready to take over the role of chief executive in April. His left- and right-hand men, Tom Williams and Didier Evrard, retire at the year end.


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November 6 - 8, 2018 – Singapore

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March 12 - 14, 2019 – Thumamah Airport, Riyadh, KSA
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