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Friday, April 27th, 2018
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LATEST NEWS
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The Lufthansa Group continues its successful path in the first quarter of 2018. The Group’s Network Airlines increased their Adjusted EBIT margin by 3.2 points to 2.4% in what is traditionally the weakest quarter for all airlines.
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Lufthansa Cargo achieved a strong Adjusted EBIT margin improvement: up 4.3 points to 10.1%. These improved earnings were largely offset by significant one-off costs at Eurowings from its growth in the context of the Air Berlin insolvency. As Lufthansa Technik and “Others & Consolidation” showed earnings declining to the levels of earlier years, the total Adjusted EBIT increased only slightly by €1m to €26m for the first-quarter.
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Despite new record numbers of passengers carried and high seat load factors, the total revenues of around €7.6bn (of which €5.8bn traffic revenues) for the first-quarter were broadly on previous-year level due to the first-time implementation of the new IFRS 15 accounting standard. Without this, first-quarter revenues would have been increased by 4.5%. The net group result for the period improved by €11m to €-57m.
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Fraport AG and Swissport have signed a long-term lease agreement for a new air cargo facility in CargoCity South at Frankfurt Airport (FRA). Fraport is developing a new custom-built air cargo warehouse for Swissport at CargoCity South. The facility will have a surface of 16,900 m², with an additional 2,200 m² to be used as office and social space.
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Swissport International, a market leader in ground handling, is also one of the world’s largest air cargo handling companies, operating 133 warehouses around the globe.
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The attractive new warehouse will be optimally tailored to the requirements of modern air cargo handling. Built in line with the latest industry standards, the facility will be designed for flexible use. Construction is scheduled to begin in 2019. The completion and handover to Swissport Cargo Services Deutschland GmbH is planned for the beginning of the third quarter of 2020.
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Rockwell Collins’ new Aspire™ widebody economy seat has entered service on a United Airlines’ Boeing 777-200 aircraft, the first in a 55 shipset retrofit program that begins delivery this spring.
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Aspire offers an improved, patented comfort system with an advanced kinematic mechanism that cradles the passenger during recline while preserving maximum living space for each passenger.
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Following the launch on the 777, the new Aspire seat will continue its success on the Boeing 787-10 Dreamliner with United and then onto the Airbus A350 XWB and other 787 aircraft, with other undisclosed customers that more than doubles the initial 777 program deliveries.
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Norwegian has reported its first quarter earnings for 2018 with a result of NOK-46.2m (£-4.16m). The quarter was characterized by international expansion, strong passenger growth and higher fuel cost. A successful private placement of shares was completed this quarter.
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The net result was NOK-46.2m, compared to NOK-1,491.5m the same quarter previous year. The net result of this quarter is positively affected by a financial gain from reclassification of the investment in Norwegian Finans Holding of NOK1,940m.
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The airline carried 7.5 million passengers in the first quarter, an increase of 12%. The capacity growth was 36% and the load factor was 84.5%.
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Norwegian has grown rapidly during the past years, expanding international traffic and adding new bases, destinations and markets to its portfolio. Consequently, making the U.S. the market with the strongest growth.
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Boeing, through its subsidiary Aviall, has signed a multi-year parts distribution agreement with GE Aviation to support the T700 engine.
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Under this agreement, Aviall will market and distribute components needed to support the maintenance, repair and overhaul of the GE T700 engine models that power civil and international military helicopters for customers in more than 30 countries.
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Since entering production in 1978, the T700 has powered a variety of civilian, commercial and military applications that support transport, medical evacuation, air rescue, marine patrol and defense missions around the world.
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Aviall's worldwide distribution network will provide localized support for customers relying on the T700 engine for fleet readiness. As an established global aerospace and defense distributor, Aviall has a long-standing history of connecting customers with strategically-positioned product solutions, designed to meet current and future needs.
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American Airlines Group has reported its first-quarter 2018 results with Pre-tax earnings excluding net special items of US$468m, a US$193m decrease from the first quarter of 2017. First-quarter 2018 total revenue increased 5.9% year-over-year, to US$10.4bn. Passenger revenue per available seat mile (PRASM) grew in all geographic regions, with notable strength in Latin America. Cargo revenue was up 18.8% to US$227m due primarily to a 10.9% increase in volume and a 7.1% increase in cargo yield.
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Other revenue was up 10.0% to US$694m. First-quarter total revenue per available seat mile increased by 3.5% compared to the first quarter 2017 on a 2.3% increase in total available seat miles.
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Total first-quarter 2018 operating expenses were US$10.0bn, up 9.8% year-over-year driven by a 25.7% increase in consolidated fuel expense. Had fuel prices remained unchanged versus the first quarter 2017, total expenses would have been US$412 million lower. Total first-quarter 2018 cost per available seat mile (CASM) was 15.15 cents, up 7.3% from first-quarter 2017. Excluding fuel and special items, total first-quarter CASM was 11.57 cents, up 2.8% year-over-year.
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SIA Engineering Company has announced the signing of a comprehensive Services Agreement with SilkAir (Singapore) for its latest fleet of Boeing 737 MAX aircraft.
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The Company currently has existing Services Agreements with SilkAir for its Airbus A320 and Boeing 737-800 aircraft. The new agreement for the 37 Boeing 737 MAX aircraft is for a term of 12 years, with an option to renew for a further period of 5 years. The Company’s support of SilkAir’s fleet covers a wide range of maintenance, repair and overhaul, and support services.
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The total revenue of this agreement is approximately SG$484m over the 12-year term.
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Airbus and Rolls-Royce have signed a collaboration agreement for the integration of Rolls-Royce’s UltraFan® demonstrator for flight testing. The integration solutions demonstration will be co-funded by Clean Sky 2, the European Union research programme focused on developing technology to reduce emissions.
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UltraFan is a scalable jet engine design suitable for widebody or single-aisle aircraft and offers a 25% fuel efficiency improvement over the first-generation of Rolls-Royce Trent engine.
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One element of the UltraFan programme is planning for ground and flight tests and to support this, Rolls-Royce has signed an agreement with Airbus to provide both nacelle and engine/aircraft integration architecture and technology enablers.
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Airbus’ integration solutions will play an important part in achieving the overall fuel efficiency improvement of higher bypass ratio engines such as UltraFan, through innovative architecture and associated technologies.
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UltraFan features a new engine core architecture and lean-burn combustion system which will contribute to improved fuel burn efficiency and lower emissions, along with a carbon titanium fan blade system and composite casing which reduce weight. The engine also introduces a geared design to deliver efficient power at high-bypass ratios.
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For Airbus, the project will enable it to fully integrate the overall powerplant system – composed of engine, pylon and nacelle – onto future long-range aircraft products, as well as facilitating scalability for future short-range aircraft. It will also build on Airbus’ expertise in advanced manufacturing technologies, such as high-deposition-rate additive manufacture, welded assembly and high production rate thermoplastics.
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Magnetic MRO has successfully completed its first ever Airbus A321neo service delivery on the basis of a seat modification project supported by the company’s EASA approved DOA services.
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Right after the low-cost carrier Primera Air took delivery of its first Airbus A321neo in April 2018, it was flown to Tallinn for Magnetic MRO to proceed with passenger cabin reconfiguration. The project scope comprised of introducing the new business class seats "Series 7", manufactured by ACRO. Primera Air has become the launch customer following Magnetic MRO replacing its economy seats with these finest quality seats, offering premium design experience.
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Magnetic MRO is now preparing for the next Airbus A321neo and Boeing B737 MAX9 aircraft from Primera Air, following their releases from final assembly lines in the forthcoming weeks.
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Sabre Corporation, the technology provider to the global travel industry, has signed a new distribution service agreement with Fuzhou Airlines, making Sabre the carrier’s first global distribution system provider based outside of China.
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Operating as a joint venture of Hainan Airlines out of Fuzhou Changle International Airport, Fuzhou Airlines is a fast-growing Chinese carrier that serves routes to major cities within eastern China. The airline hopes its rising growth trajectory will also play a leading role in raising the profile of Fuzhou, the capital city of Fujian province, by driving greater cooperation across the region.
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With a current fleet that consists of sixteen 737-800 airplanes, the airline also expects to add two more aircraft by the end of 2018.
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This agreement marks the sixth HNA Group carrier to join Sabre alongside Hainan Airlines, Beijing Capital Airlines, Lucky Air, China West Air and Tianjin Airlines.
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UPCOMING EVENTS
June 5, 2018 – Jury’s Inn Hotel, Prague
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