Wednesday, April 24th, 2019


Directors slapped with injunction as confusion heightens over Hong Kong Airlines’ ownership

Having triggered a hostile takeover of Hong Kong’s third-largest carrier, former director Zhong Guosong has served a writ on four directors of ailing Hong Kong Airlines. The directors are chairman Hou Wei, Wang Liya, Sun Jianfeng and Tang Kit, all of whom have ties to controlling shareholder HNA Group. The writ, which was served Tuesday, April 23, preventing them from interfering, sabotaging, or making decisions beyond the normal operation of the business, unless approved by Zhong and his rival board.

Acting on behalf of current management, the airline’s in-house PR team, confirmed in a
statement that it had received the court orders. “The orders are temporary, pending further
confirmation by the court and are subject to change,” the statement stated. “In any event, they do not affect the day-to-day operations of the airline. We continue to operate as normal and there are no changes to our management.”

A statement released by Zhong’s agency said: “Hong Kong Airlines’ majority shareholders wish to reiterate that the reason for taking this action is to secure Hong Kong Airlines’ financial future, which remains under significant financial stress.” The new directors were named as Zhong Guosong, Wong Kum-sum, Leung Jo-yee, Huang Che Kuang, Zhang Sheng and To Wai-wa.

Confusion over the airline’s ownership surrounds the sale of 172.5 million shares to Grand Capital City Investment for HK$546.5 million (US$69.7 million) on April 11 this year. The shares, an approximate one-third stake, were owned by Frontier Investment Partners and the documents confirming the sale were signed by Zhang Ziyan, but it has not been confirmed whether he had been authorized by Frontier to carry out the transaction. If the transaction proves to be invalid,
then Frontier would remain the majority shareholder as HNA currently hold only 29 percent.


StandardAero delivers PT6A-67D engine services to Alpine Air Express

StandardAero is to support a new entry into the cargo aircraft market, the Alpine Air Express Beech 1900D Super Freighter. As a Designated Overhaul Facility (DOF) with Distribution rights for the Pratt & Whitney Canada PT6A family, StandardAero is delivering Alpine Air and its customers with responsive PT6A-67D support for its Super Freighter program.

Developed through a Supplemental Type Certificate (STC) program by well-known scheduled air cargo services provider Alpine Air, the Super Freighter converts the Beech 1900D into a highly capable cargo aircraft with a 40% capacity increase over the established 1900C freighter.
Powered by the reliable PT6A-67D, the Super Freighter also offers a 23% range advantage over the 1900C, along with a 7% speed increase. Equipped with a large 62 in. x 25 in. rear cargo door and fitted with a new Z-track cargo system, the Super Freighter’s 900 cu. ft. cabin can accommodate a useful payload of 7,439 lb.

Alpine Air secured STC certification of the Super Freighter in October 2018, and the aircraft is now in operation in support of Alpine Air’s client base, which includes the United Parcel Service (UPS) and the U.S. Postal Service (USPS). Alpine Air is now undertaking full-rate conversions of Beech 1900Ds to Super Freighter configuration, both for its own use and for sale to third-party operators.

Aircraft Finance Germany

NAC delivers two E-jets on lease to Belavia

Nordic Aviation Capital (NAC) has delivered one new Embraer E195, MSN 19000765 and one new E175, MSN 17000782, to JSC Belavia-Belarusian Airlines on lease.

The five aircraft agreement, which comprises of three E195’s and two E175’s, is an essential part of Belavia's fleet growth initiative which will allow them to successfully implement their cost-effective development strategy.

JetBlue announces first quarter 2019 results

JetBlue has reported that first quarter 2019 revenue per available seat mile (RASM) declined 3.1%, year over year, driven by holiday calendar acement, improved completion factor and certain areas of softness observed in the trough period. Excluding the 0.75 point impact from high completion factor, RASM declined 2.4% year over year, slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%).

JetBlue reported GAAP pre-tax income of US$58 million, a decline of 48.5% from US$113 million in the first quarter of 2018. Excluding the one-time costs, adjusted pre-tax income of US$70 million, a decline of 38.2% from the first quarter of 2018. Pre-tax margin of 3.1%, inclusive of the one-time costs, a 3.3 point decline from the first quarter of 2018. Adjusted pre-tax margin of 3.7%, a 2.7 percentage point decline year over year.

TP Aerospace

China’s first Airbus H215 helicopter delivered to SGGAC

China’s State Grid General Aviation Company (SGGAC) has taken delivery of one heavy twin-engine Airbus H215 helicopter – a member of the mission-proven Super Puma family – becoming the launch customer for the H215 in China.

A subsidiary of the State Grid Corporation of China (SGCC), the world’s largest utility company, SGGAC performs aerial construction and maintenance work along China’s network of high and very-high voltage power lines.

The H215 will join the company’s existing fleet of 15 Airbus helicopters, comprised of H125s, an H120 and an H225. This addition will enable SGGAC to perform new missions such as cable repair, cable laying, cargo transportation, and power line pylons constructions in difficult-to-reach areas.

The helicopter comes equipped with a 4.5-ton cargo sling, hoists, weather radar, and a wire-strike protection system. The configuration features 17 comfortable seats equipped with oxygen jackets for high altitude missions.

Air Partner names Kevin Macnaughton Managing Director, Charter

Air Partner, the global aviation services group, has appointed Kevin Macnaughton as Managing Director, Charter, with immediate effect.

Macnaughton is responsible for the development of the Charter division’s business strategy and reports directly to Air Partner CEO Mark Briffa. He brings with him a wealth of experience in the aviation charter industry, both in the UK and overseas, having held a number of senior roles at NetJets over a period of 13 years. Most recently, he was Company Director, Head of European Sales, leading the planning and execution of the sales strategy.

ASI Aero

Silver Airways launches regularly scheduled flights aboard new ATR -600 series aircraft

Silver Airways has launched its regularly scheduled flights aboard its new ATR -600 series aircraft on April 22. The first flight departed Fort Lauderdale-Hollywood International Airport at 10:40 a.m and arrived at Key West International Airport at 11:55 am (EST).

Silver Airways, an American independent, regional airline, is reinventing the regional flying sector by being the first U.S. carrier to operate ATR -600 series aircraft. Silver Airways has taken delivery of three new ATR 42-600 aircraft from NAC (Nordic Aviation Capital). The aircraft is specifically designed for short-haul markets, but with the same look, feel and customer amenities of larger jetliners. The flight on April 22, marked the first time revenue passengers have flown on an ATR -600 operated by a U.S carrier.

The new aircraft are allowing Silver to expand its service in the Southeastern United States, the Bahamas and the Caribbean. By initially introducing the mission-specific ATR 42-600 aircraft, with seating for 46, Silver now has the unique ability to offer quicker direct flights to even more short and medium-haul leisure and business destinations in both domestic and nearby international markets.


United Technologies reports first quarter 2019 net income of US$1.3 billion, up 4%

United Technologies has reported first quarter 2019 results. Sales of US$18.4 billion were up 20% over the prior year, including 8 points of organic sales growth and 15 points of acquisition benefit offset by 3 points of foreign exchange headwind. GAAP EPS of US$1.56 was down 4% versus the prior year and included 25 cents of nonrecurring charges and 10 cents of restructuring. Nonrecurring charges included 16 cents of Rockwell Collins inventory step-up amortization, 6 cents of costs related to the UTC portfolio separation activities and 3 cents of other net charges. Adjusted EPS of US$1.91 was up 8%. First quarter results exceeded expectations primarily due to better than expected Collins Aerospace and Otis results as well as a slightly favorable effective tax rate.

Net income in the quarter was US$1.3 billion, up 4% versus the prior year. Cash flow from operations was US$1.5 billion and capital expenditures were US$363 million, resulting in free cash flow of US$1.1 billion.

In the quarter, Collins Aerospace commercial aftermarket sales were up 64% and up 9% organically. Collins Aerospace commercial aftermarket sales were up 12% on a pro forma basis including Rockwell Collins. Pratt & Whitney commercial aftermarket sales were up 1%. Pratt & Whitney continues to expect commercial aftermarket sales to be up mid-single digits for the full year. Equipment orders at Carrier were down 2% organically in the quarter after being up 10% in the first quarter of 2018. Otis new equipment orders were down 1% at constant currency in the quarter and up 3% on a rolling twelve month basis.

UTC updates its 2019 outlook and now anticipates adjusted EPS of US$7.80 to US$8.00, up from US$7.70 to US$8.00.


FAI Technik receives FAA approval for EASA MRO licence

FAI Technik GmbH, the maintenance division of Germany’s FAI Aviation Group, has received FAA approval for its EASA Part 145 licence. With the certificate in place, the company is fully authorized to perform maintenance, repair and overhaul on US registered business aviation aircraft at its Albrecht Duerer Airport headquarters in Nuremberg. This latest licence follows similar approvals from the Nigerian authorities in October 2018 and from the Cayman Islands and Bermuda in 2017.

Last month, FAI Technik started work on its sixth in-house Global Express cabin refurbishment
which marked one of the most extensive refurbishment projects for the type. Named ‘Project Pearl’, the Bombardier BD700 will include 60, 120- and 240-month inspections and feature
Collins Aerospace’s latest VenueTM cabin management system and high definition entertainment system.

FAI Technik provides MRO services for Bombardier Learjet, Challenger and Global Express aircraft, including the FAI rent-a-jet AG operated fleet. It also supports FAI´s dedicated fleet of air ambulance jets. The division is supported by some 60 full time staff.

Airbus appoints Jean-Marc Nasr Head of Space Systems

Airbus has appointed Jean-Marc Nasr Executive Vice President Space Systems within the Airbus Defence and Space division. Nasr will assume his new duties on 1 June 2019 and succeeds Nicolas Chamussy whose next assignment is subject to further notice.

In his new role, Nasr will be Member of the Airbus Defence and Space’ Executive Committee and report to Dirk Hoke, CEO of Airbus Defence and Space. Presently, Nasr serves as Head of Region Asia Pacific for Airbus and Airbus Defence and Space. Johan Pelissier currently Head of South East Asia within Airbus Defence and Space, will succeed Jean-Marc Nasr in his current function and will be acting Head of Region Asia Pacific for Airbus Defence and Space as of June 1, 2019.

AMROS Global

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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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