Tuesday, December 11th, 2018



Avianca looks to slash US$10bn 100-jet order

Avianca CEO Hernan Rincon has announced that the Latin American carrier is looking to renegotiate the US$10 billion 2015 deal it had struck with European plane maker Airbus for 100 A320neos.

Commenting on the forthcoming talks with Airbus, Rincon stated that: "Of those 100, we'll probably receive between 50 and 80 planes," adding: "We don't have any doubt that we will keep growing, what has changed is the rhythm of the growth." Rincon also said that: "The rhythm of technology is changing, it will take a while to get all of the order and we don't want to have a commitment to planes with today's technology which will be received by us in 10 or 15 years."

The announcement comes at a time when Avianca is looking to create a strategic alliance with German airline Lufthansa as it sees Europe as its next target for expansion. At the end of November, Avianca, United Continental Holdings Inc and Copa Airlines of Panama confirmed that they had finalized a three-way joint venture that will allow them to plan routes and fares together and share revenues on those routes. "We've started conversations with Lufthansa, but it’s very embryonic," said Rincon. "We hope to reach an agreement to benefit our passengers in Europe, which is a relevant and growing market."

Under the United and Copa agreement, United will provide a US$456 million term loan to cash-strapped Avianca's top shareholder, Synergy Group Corp. Loss-making Avianca has approximately US$4 billion of debt, 40 percent of which is due within the next two years, based on recent financial statements. Avianca will also begin operating a regional subsidiary in Colombia in 2019, serving medium- and small-sized cities with its current fleet of 12 ATR 42 planes.


Passenger demand rebounds in October

The International Air Transport Association (IATA) has reported global passenger traffic results for October showing that demand rose 6.3% compared to the same month last year. This marked a rebound from 5.5% growth recorded in September, which was an eight-month low. Capacity also grew 6.3% and load factor was flat at 81.1%, matching last year’s record for the month.

October international passenger demand rose 6.3% compared to October 2017, up from 5.1% growth in September. Airlines in all regions recorded gains. Total capacity climbed 6.1%, and load factor increased 0.1 point to 79.8%.

European carriers’ October demand climbed 7.5% over October 2017, which was the strongest growth among regions and well up on the 5.3% increase for September. Capacity rose 7.0% and load factor edged up 0.4 points to 85.2%, highest among regions.
Asia-Pacific airlines’ traffic rose 5.8% compared to the year-ago period, up from 5.4% year-over-year growth in September. Capacity climbed 5.4% and load factor rose 0.3 points to 78.9%.
Middle East carriers experienced a 4.4% rise in demand in October compared to last year, slowest among the regions for the seventh time in 12 months. It was, however, an increase over the 3.3% increase in September. Capacity increased 6.4%, and load factor slid 1.3 points to 69.8%, lowest among regions.
North American airlines’ traffic climbed 5.6% in October compared to the year-ago period, up from 4.9% growth in September. Strong momentum in the US economy is helping to drive robust international demand. Capacity rose 3.7% and load factor surged 1.4 points to 80.4%.
Latin American airlines were the only carriers to experience a slowdown in growth as demand rose 5.9% versus 6.3% in September. Capacity climbed 9.1%, and load factor dropped 2.4 points to 80.4%.
African airlines’ traffic grew 6.8% year-on-year in October, raised from 6% annual growth in September. The upward trend in passenger demand remains strong notwithstanding challenges in the economic backdrop of the continent’s largest economies, Nigeria and South Africa. Capacity rose 5.5%, and load factor climbed 0.9 points to 70.3%.

MJet becomes first ACJ customer for Skywise

MJet GmbH of Austria has become the first ACJ319 operator to sign up for Skywise, enabling it to integrate its own operational, maintenance and aircraft data into the Skywise platform. MJet will store, access, manage, and analyse selected Airbus data together with its own data and global benchmarks without the need for additional infrastructure investments.

This service will provide MJet new insights at aircraft, company and global level while allowing it to enhance its operations by improving operational reliability, reducing operational interruptions and identifying efficiencies, cost savings and enhanced revenue opportunities.

MJet will share its Airbus operating-data and in return access the platform to benefit from other A319 operators’ aggregate aircraft reliability fleet data. MJet will also work with Airbus to further develop product and support services specifically for ACJ operators.

Skywise provides all users with a single access-point for their enriched data by bringing together aviation data from multiple sources, across the industry, into one secure platform. The more data that airlines share into the Skywise platform, the more accurate the predictions and models for all connected. All data is anonymised to ensure data confidentiality.

More than 190 Airbus Corporate Jets are in service around the world, flying on every continent, including Antarctica.


Avolon places 11 Boeing 737 MAX 8 aircraft with GOL

Avolon, the international aircraft leasing company, has placed 11 Boeing 737 Max 8 aircraft from its orderbook with Brazilian airline, GOL. Delivery of the aircraft will commence in the second half of 2019.

Felipe Campos, Avolon Head of Latin America, commented: “We are delighted to support GOL as they work creatively to accelerate their fleet renewal plans. Our relationship with the GOL team extends back to the earliest days of the airline and this transaction ensures that our partnership will continue well into the future.

This addition of further 737 MAX aircraft to the GOL fleet will enhance efficiency and reliability and also allow the expansion of their route network. Our commitment to our customers is to have a product offering built around the latest and most technically advanced aircraft available in the market and the 737 MAX is a core part of that offering.”

Boeing on contract for second Japan KC-46 Tanker

The U.S. Air Force has exercised the option for the Japan Air Self-Defense Force’s second Boeing KC-46 tanker through the Foreign Military Sale (FMS) process.

Boeing was awarded the initial FMS contract for Japan’s first KC-46 aircraft and miscellaneous logistics services in December 2017 following the Japan Ministry of Defense’s KC-X aerial refueling competition.

The KC-46 is a multirole tanker designed to refuel all allied and coalition military aircraft compatible with international aerial refueling procedures and can carry passengers, cargo and patients.

Boeing began developing the KC-46A Pegasus tanker for the U.S. Air Force in 2011 and is assembling the 767-derivative aircraft at its Everett, Wash., facility.

Royal Aero

Turkish Airlines achieves 81.4% load factor in November

Turkish Airlines has reported that the total number of passengers carried in Nobember 2018 increased by 4% compared to the same month in 2017, reaching 5.5 million passengers. The load factor reached 81.4%, an increase of 2.0 points compared to the previous year.

Cargo/mail volume continued its double-digit growth trend, increasing by 25% compared to the same period in 2017. The main contributors to the increase were N. America +45%, Africa +32%, Far East +23% and Europe +21%.

Jet Aviation receives IS-BAH™ Stage 2 Safety Registration for 20 FBOs at MEBAA

Jet Aviation has received International Standard for Business Aircraft Handling (IS-BAH) Stage 2 Safety Registration from the International Business Aviation Council (IBAC) for 20 of its FBOs across EMEA and the Americas. The company intends to achieve IS-BAH Standard registration for its new Hawker Pacific and KLM Jet Center FBOs in 2019.

IBAC Program Director for IS-BAH, Terry Yeomans, presented 20 IS-BAH Stage 2 Safety Certificates to Jet Aviation at its MEBAA chalet in Dubai. “This remarkable achievement demonstrates Jet Aviation’s ongoing commitment to the highest safety standards for its customers and employees,” said Yeomans.

Based around a safety management system that models the structure and format of the International Standard for Business Aircraft Operators (IS-BAO™), IS-BAH establishes criteria for best handling systems, processes and practices to ensure FBOs meet rigorous safety and security standards.

Jet Aviation received IS-BAH Stage 2 Safety Registration for the following FBOs in EMEA and Asia:

Geneva and Zurich, Switzerland; Berlin (Schonefeld), Dusseldorf and Munich, Germany; Vienna, Austria; Dubai (DXB and DWC) United Arab Emirates; Jeddah, Medina, and Riyadh, Saudi Arabia; Singapore

In the U.S., Jet Aviation’s IS-BAH Stage 2-registered FBOs include:

Washington Dulles, Virginia; Teterboro, New Jersey; Bedford, Massachusetts; Palm Beach, Florida; Dallas and Houston, Texas; St. Louis, Missouri; Van Nuys, California.

Magellan Group

WestJet reports November load factor of 81.0%

WestJet announced November 2018 traffic results with a load factor of 81.0%, a decrease of 1.4 points year over year. Traffic increased 3.1% year over year, while capacity grew 4.9% over the same period. WestJet welcomed an additional 33,000 guests in November, a year over year increase of 1.7%. Year to date traffic growth continues to outpace capacity additions.

Lithuanian Air Force renews Dauphin HCare Infinite contract

The Lithuanian Air Force (LAF) has renewed its HCare Infinite material management contract for its fleet of three Dauphin AS365 N3+ search and rescue (SAR) helicopters following achievement of 97% average fleet availability over a three-year period.

These helicopters entered service performing SAR missions in 2015 with a three-year full warranty and Airbus’ commitment to maintaining at least an 80% fleet availability rate.

Lithuania was one of the first customers to choose HCare Infinite, Airbus’ most comprehensive level of HCare material management services. The terms require Airbus Helicopters to guarantee the operational availability of LAF’s Dauphin fleet, including technical support and supply of spare parts, tools and consumables.

Through the contract, LAF has direct access to Airbus Helicopters’ parts inventory in Šiauliai, Lithuania, as well as the Airbus parts-by-the-hour pool – a dedicated high-availability pool located in Les Florides, Marignane, France. In addition, a dedicated technical representative is embedded on LAF premises working closely with the Airbus Customer Support Manager in Marignane. Aircraft performance is measured on a daily basis.

Beach Aviation Group

AELS buys two Boeing 737-700s for disassembly

AELS (Aircraft Endof-Life Solutions) has bought two Boeing 737-700 aircraft (MSN 35135 and 35136, Reg. D-AHXE and D-AHXF) without engines. The aircraft were remarketed by Skytech-AIC on behalf of TUI, the seller. The aircraft, only 11 years old, arrived on November 30th and December 1st at Twente Airport.

These are the first two 737NGs acquired by AELS, representing the next step in its continues growth. In the coming months AELS will disassemble the aircraft according to the highest standards. The components will be returned to the aviation industry. They will be offered to operators, part brokers, PBH-providers and MROs for support of the still growing operational fleet of 737NGs.

AELS buys aircraft and sells aircraft components for all types of aircraft. AELS is a fully accredited company (Aircraft Fleet Recycling Association (AFRA) for dismantling and recycling and ASA-100 (FAA AC 00-56) for component management).

Finnair announces first phase partners for its biofuel and CO2 offset service

Air travellers are increasingly interested in reducing the CO2 emissions of their flights. Finnair announced last summer that as of early 2019 it will start offering its customers a new service allowing customers to offset the CO2 emissions of their flights by funding emissions reduction projects or carbon sinks, or by supporting the use of biofuels.

Finnair has now selected its first partners for its offset service: For sustainable biofuels, Finnair’s partner will be the Dutch SkyNRG company and for emission reduction projects, Finnair will partner with the Nordic Environment Finance Corporation, an international financial institution backed by the Nordic states. Finnair will introduce the CO2 offsetting service to its customers in early 2010.

SkyNRG is a global market leader for sustainable aviation fuel and its biofuel, which is made from used cooking oil, is sourced at World Energy’s Paramount refinery in Los Angeles, California.
Finnair is a part of the initiative driven by Shell, SkyNRG, World Energy, San Francisco Airport and several other airlines, which aims to pave the way for a longer term, more resilient supply chain for sustainable aviation fuels, and thus supporting the industry’s common targets for CO2 emission reduction.

Flights flown by Finnair with biofuel will be determined by the uptake of the service by Finnair customers. Biofuel has a reduction potential of 60-80%, compared to conventional jet fuel, but its price is currently three to five times the price of conventional jet fuel.

For emission reductions, Finnair will partner with NEFCO, a financial institution established by Nordic Governments to finance sustainable green growth and climate projects. Finnair customers will be able to offset the CO2 emissions of their flights by funding an emissions reduction project identified by NEFCO in Mozambique, where efficient cookstoves are taken into use to reduce deforestation and emissions.

Finnair is committed to the aviation industry’s common goals, which are to achieve carbon neutral growth by 2020, and to halve the CO2 emissions by 2050, compared to the 2005 level. On top of this, Finnair has set its own targets for CO2 emission reduction. Finnair reduces CO2 emissions of its own operations by using modern aircraft, by flying the shortest possible routes, by optimising flight speed and altitude, and by reducing the weight taken on aircraft

GA Telesis

TrueNoord leases fourth new ATR 72-600 to Wings Air of Indonesia

PT Wings Abadi, operating as Wings Air and a subsidiary of Lion Air Group, has taken delivery of its fourth new ATR 72-600 aircraft leased from TrueNoord, the specialist regional aircraft lessor. This is the culmination of a deal that has already seen TrueNoord integrate three aircraft into the Wings Air fleet in August, October and November this year.

The aircraft are all provided on long term operating leases in association with Transportation Partners and ATR. Financing is provided under TrueNoord’s recent term loan warehouse facility supported by Morgan Stanley, NORD/LB Norddeutsche Landesbank and Barclays. Legal services were provided by the London and Singapore offices of Milbank, Tweed, Hadley & McCloy LLP and Indonesian law firm Mochtar, Karuwin & Komar.

Commenting at a convention for aviation finance in London, Anne-Bart Tieleman, CEO – TrueNoord, said “These are the first brand new ATRs for TrueNoord and it has been an exciting experience for us over the past five months. These aircraft sow the seeds of our ultimate vision and long term plan to build up a strong portfolio of young regional aircraft types with a good global spread and leased to experienced, market leading, operators.

Wings Air currently flies 270 routes across Indonesia mostly consisting of short-haul flights of less than one hour. Their fleet is exclusively comprised of propeller-based aircraft, allowing the airline to serve difficult routes and airstrips that only turboprop aircraft can service.”

GKN Aerospace announces new £32 million Global Technology Centre in Bristol

The Secretary of State for Business, Energy and Industrial Strategy, Greg Clark and the Chief Executive of GKN Aerospace, Hans Büthker together have revealed plans for GKN Aerospace’s new Global Technology Centre in the UK.

The new centre - funded by a £17 million commitment from GKN Aerospace and a £15 million commitment from the UK Government, through the Aerospace Technology Institute - is expected to open in 2020. Once open the 10,000 m² facillity will host 300 highly skilled engineers, and will include collaborative space for research and development with universities, the UK’s CATAPULT network and GKN Aerospace’s UK supply chain.

The centre will focus on additive manufacturing (AM), advanced composites, assembly and industry 4.0 processes to enable the high rate production of aircraft structures. The GTC will maintain GKN Aerospace’s position at the forefront of technology development for the next generation of energy efficient aircraft. The facility will serve as a base for GKN Aerospace’s technology partnership in the Airbus’ ”Wing of Tomorrow” technology programme as well as new additive manufacturing programmes.

The Bristol centre joins a growing list of GKN Aerospace Centres of Technical Excellence around the world. Each centre has a unique technology focus - covering AM, thermoplastics and smart aero-engine systems - and is supported and linked by a clear digital strategy.


Leonardo S.p.A selects HEICO Component Repair Group as authorized repair center

HEICO Component Repair Group (Structures Division), a subsidiary of HEICO Corporation has been selected as an authorized service center. Under the agreement, HEICO Component Repair will perform modification and repair and overhaul of Embraer 170 and 175 fan cowls and air inlets (Inlet Cowls) by Leonardo S.p.A, the manufacturer of these parts.

Vladimir Cervera, VP/GM of HEICO Component Repair Group, Structures Division commented "We are excited to partner with Leonardo to service Embraer E170 & E175 inlet and fan cowls as an OEM authorized service center. Leonardo's quality products, combined with HEICO's emphasis on customer satisfaction, ensures the highest level of support for our shared airline customers. HEICO's commitment to service, and Leonardo's exceptional product design, provide operators with a foundation for greater fleet control and continued operation."


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