Wednesday, April 17th, 2019


Rising fuel costs and overcapacity see Lufthansa post first-quarter loss

Lufthansa Group’s Adjusted EBIT declined to €-336 million in the first quarter of 2019 compared to €52 million for the first quarter of 2018, despite a 3 percent increase in total revenue of €7.9
billion for the quarter compared to 2018 figures. Adjusted EBIT was reduced by a EUR 202 million rise in fuel costs. According to the Group, the negative trend was accentuated by the fact that first-quarter results for 2018 had been particularly strong, owing to the capacity reductions deriving from Air Berlin’s demise. On this basis, the Lufthansa Group’s Network Airlines suffered a 5.2-percent currency-adjusted decline in their unit revenues for the period. The unit revenue decline at Eurowings, with its higher proportion of short- and medium-haul routes, amounted to 8.5 percent. First-quarter unit costs (ex fuel) decreased 0.8% percent at the Network Airlines and 7.2 percent at Eurowings, both on a currency-adjusted basis.

On a preliminary basis, the Network Airlines achieved an Adjusted EBIT of €-160 million (prior year: €128 million) for the first quarter of 2019, while Eurowings saw its Adjusted EBIT for the period decline to €-257 million (prior year: €-212 million). First-quarter Adjusted EBIT for Lufthansa Cargo amounted to €24 million (prior year: €72 million), a 67-percent decline that is attributable to downward airfreight market trends, especially on routes between Europe and Asia. Lufthansa Technik reports a first-quarter Adjusted EBIT of €125 million (prior year: €107 million), while LSG achieved an Adjusted EBIT for the period of €2 million (prior year: €1 million). Adjusted EBIT for the Other Businesses amounted to €-59 million (prior year: €-29 million).

“We are seeing good booking levels for the quarter ahead,” says Ulrik Svensson, Chief Financial Officer of Deutsche Lufthansa AG. “At the same time, we have substantially reduced our own capacity growth. And with a reduction in growth also projected for the European market as a whole, we expect unit revenues to increase again in the second quarter. This should be further buoyed by the still-strong demand on our long-haul routes, especially to Asia and North America.” (€1.00 = US$1.13 at time of publication.)


HondaJet Elite receives Canadian Type Certification

Honda Aircraft Company has reported that the HondaJet Elite has received type certification from Canada’s Transport Canada Civil Aviation (TCCA), demonstrating that the aircraft meets the safety standards set by the organization.  HondaJet Elite deliveries in the region will begin immediately.

The HondaJet Elite holds type certifications around the world, including, the United States (Federal Aviation Administration), Europe (European Aviation Safety Agency), Mexico (Directorate General of Civil Aviation), Brazil (National Civil Aviation Agency), India (Directorate General of Civil Aviation) and Japan (Japan Civil Aviation Bureau).

HondaJet fleet is currently comprised of 118 aircraft around the globe and has demonstrated a dispatch reliability of 99.7%.

Emirates announces interline agreement with Africa World Airlines

Emirates and Africa World Airlines (AWA), the Ghanaian airline headquartered in Accra, have announced a one-way interline agreement whereby Emirates customers can connect onto selected routes of Africa World Airlines’ network, opening up new African destinations for Emirates customers from May 2019.

Passengers on Emirates’ network can now benefit from greater connectivity to West Africa, especially those travelling from popular inbound markets such as Dubai, China, India and Australia who can now connect from Accra onto AWA flights to Kumasi, Tamale and Sekondi-Takoradi in Ghana; and regional destinations Monrovia in Liberia and Freetown in Sierra Leone.

Emirates passengers can choose from seven weekly flights from Dubai to Accra until 2nd of June, 2019, when Emirates will increase services on the route to 11 weekly flights. The agreement with AWA will further extend Emirates’ connectivity from Accra with up to ten flights daily to Kumasi, four flights daily each to Tamale and Takoradi and six weekly flights to Monrovia and Freetown.


Jet Aviation completes integration of Hawker Pacific in Singapore

Jet Aviation has finished integrating its Hawker Pacific operations at Seletar Airport in Singapore, which now run under the Jet Aviation brand. Jet Aviation acquired Hawker Pacific in May 2018. The two physically adjacent companies each operated MRO and FBO facilities in Singapore.

The combined MRO and FBO facility in Singapore now operates under the Jet Aviation logo. As a single unified company, Jet Aviation’s expanded Singapore operation gains Authorized Service Center status for Embraer and Dassault aircraft, increases its available hangar space to nearly 20,000 m², and more than doubles its headcount, now at 299 employees. It also significantly broadens the range of OEMs and aircraft types it supports, while bringing its national aviation approvals up to 19.

Fly Leasing completes sale of 12 aircraft

Fly Leasing, a global leader in aircraft leasing, has completed the sale of a portfolio of 12 aircraft for an aggregate price of approximately US$295 million. The portfolio was comprised of Airbus A320 and Boeing B737 narrow-body aircraft with an average age of over 10 years.

“This portfolio sale accomplishes several strategic objectives; including generating free cash, reducing leverage, reducing our lessee concentration, and lowering the average age of our fleet,” said Colm Barrington, CEO of FLY. “This is another example of how FLY has consistently sold aircraft from its portfolio at premiums to book value, underscoring the strong value of our fleet.”

Three sales were recognized in the fourth quarter of 2018, eight sales were completed in the first quarter of 2019, and the final sale was completed in April. The sales were at a premium to net book value.


LHT presents VIP aircraft cabin design concept jointly developed with Ameco Beijing

At ABACE 2019 ( April 16-18), Ameco and Lufthansa Technik present a jointly developed narrow-body aircraft cabin for the first time. 'Nature's Touch' is based on an Airbus ACJ320 Business Jet as cabin concept, but the design anticipates the adaption to a Boeing 737 BBJ configuration as well. The VIP cabin is one of the first concrete and publicly visible results of the cooperation in business aircraft services for Chinese clients, which both companies signed at ABACE 2018.

The new business jet cabin layout combines the cultures of East and West, exploring the harmonious beauty in the symbiosis of nature, technology and human demands offering a brand new business jet travelling experience for customers.

Mr. Jan Grube, Head of Asia Sales at Lufthansa Technik, said: "With this new concept we want to showcase our joint vision for the next generation of cabin technology. Here, Chinese design and German technology play hand in hand. Lufthansa Technik's many years of experience in perfect craftsmanship and engineering know-how and Ameco's deep insights into the Chinese culture and customer wishes form a symbiosis that can fulfil every wish - expressed or unspoken - for Chinese customers."

The unique new VIP cabin features a live-cooking aircraft galley, a guest area, a lounge, a dining/meeting area, a cinema, and a master bedroom. Taking full consideration of both customer needs and space efficiency, a convertible sofa, a coffee table in the multi-functional lounge, and a bar with transformable dividers are there to ensure a flexible usage. The dining/meeting area offers several modes such as business, entertainment, and leisure.

Air Chathams selects Rusada’s ENVISION

Air Chathams, the New Zealand regional airline, has chosen Rusada’s software ENVISION as its information management solution. Air Chathams operates regional passenger and cargo services between the Chatham Islands and mainland New Zealand. The airline serves destinations such as Auckland, Wellington, Christchurch and Whakatane using a diverse fleet of over 15 aircraft, including an ATR 72 recently acquired from Air New Zealand.

Air Chathams have selected 8 of ENVISION’s modules, including Flight Operations, Fleet Management and Base Maintenance. Rusada will begin implementing these immediately, with the first aircraft expected to go-live at the end of May.


Embraer E195-E2 granted certification by ANAC, FAA and EASA

Embraer has received the Type Certificate for the E195-E2 from three regulatory authorities: ANAC, the Brazilian Civil Aviation Agency (Agência Nacional de Aviação Civil); the FAA (U.S. Federal Aviation Administration) and EASA (European Aviation Safety Agency). The E195-E2 is the biggest of the three members of the E-Jets E2 family of commercial airplanes and the largest commercial aircraft Embraer has ever made.

“Our flight tests confirmed that the aircraft is better than its original specification. Fuel consumption is 1.4% lower than expected - that’s 25.4% less fuel per seat compared to the current-generation E195. Maintenance costs are 20% lower,” said John Slattery, President & CEO, Embraer Commercial Aviation. “There’s no question that airlines are going to love this airplane’s economics. The E195-E2 is the ideal aircraft for growing regional business and complementing existing low-cost and
mainline fleets.”

The E195-E2 will enter service in the second half of 2019 with Azul Linhas Aéreas Brasileiras S.A. and Binter Canarias, of Spain, will also receive its first E195-E2 in 2019. Embraer used two prototype aircraft in the E195-E2 certification campaign, one for aerodynamic and performance tests, the other for the interior and validation of maintenance tasks.

The E195-E2 features new ultra-high bypass ratio engines, a completely new wing, full fly-by-wire and new landing gear. Compared to the first-generation E195, 75% of aircraft systems are new. The E195-E2 has 3 additional seat rows. The cabin can be configured with 120 seats in two classes, or up to 146 in single class.

Finnair appoints Ole Orvér as CCO, Nicklas Ilebrand as SVP, Strategy

Finnair has appointed two new members to its Executive Board. Ole Orvér has been appointed as Chief Commercial Officer, and Nicklas Ilebrand as Senior Vice President, Strategy. Both new Executive Board members will start in their roles on May 1, 2019.

Ole Orvér has a long international career in several airlines, including Qatar Airways, LOT Polish Airlines, Air Berlin and SAS. In these airlines, he has mainly served in leadership positions in strategy, network management and sales. Most recently, he has worked as a consultant for both airlines and airport operators.

Nicklas Ilebrand has previously worked at Nordea mainly in strategy and product and business development roles. He worked most recently as the Head of Product and Business Development of Personal Banking at Nordea Bank. Prior to that, he worked in international business consulting at McKinsey. He has also served on the board of several companies.


Commsoft's MRO IT system OASES now supporting seaplanes

Jet-Ops FZE has chosen OASES, Commsoft’s MRO IT system, to support its current fleet of five Cessna 208 Caravan seaplanes.

Based in Dubai, Jet-Ops specialises in the management and leasing of seaplanes in the UAE and operates Passenger Air Transport flights and Aerial / Scenic Tours as its current core business, with market trading provided by Seawings LLC. Strategically located to provide aircraft management services for clients across Middle Eastern and European operational bases, Jet-Ops holds a UAE Air
Operator & EASA Aircraft Training Organization Certificates with own Part 145 AMO and CAMO, and has the expertise to provide management services for various aircraft types, including Cessna, SAAB, Piper, Beechcraft and a number of others.

For Commsoft, this represents an exciting new addition to the global OASES community which currently consists of more than 130 aviation operations in over 55 different countries, from national and regional carriers to business aviation and charter operators to cargo specialists, leasing companies and independent MROs.

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AIR Convention Asia
May 1 - 3, 2019 – InterContinental Bangkok Hotel, Bangkok, Thailand

Aviation Festival Americas 2019
May 13 - 15, 2019 – JW Marriott Marquis, Miami, FL, USA

Managing Technical Aspects of a Leased Asset & Maintenance Reserves Seminar Training Seminar
June 11 - 12, 2019 – Novotel Barcelona City Hotel, Barcelona, Spain

Paris Air Show 2019
June 17 - 23, 2019 – Le Bourget, Paris, France
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