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Monday, April 30th, 2018
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LATEST NEWS
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Southwest Airlines has revised its future firm order delivery schedule with Boeing to support future fleet modernization. The Company exercised 40 737 MAX 8 options which adds 10 additional firm orders in each year 2019 through 2022.
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Additionally, five 737 MAX 8 firm orders were shifted from 2019 into fourth quarter 2018, and three pre-owned 737-700 aircraft previously scheduled for delivery in 2018 were replaced with three 737 MAX 8 aircraft to be delivered in 2019. Including the Company's revision made to its firm order schedule executed in December 2017 and in recognition of the expected significant savings from tax reform, the Company has exercised a total of 80 options with Boeing to further invest in its fleet to support future growth opportunities and fleet modernization.
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The Company expects to end 2018 with 752 aircraft in its fleet based on the current aircraft delivery schedule.
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In the first quarter 2018 (1Q18), Embraer delivered 14 commercial and 11 executive aircraft (8 light jets and 3 large jets), for a total of 25 jets delivered during the quarter. This compares to 1Q17 deliveries of 18 commercial jets and 15 executive jets (11 light and 4 large). The Company’s first quarter deliveries are generally the lowest in terms of seasonality, and Embraer remains confident in its 2018 guidance for 85 to 95 total commercial jet deliveries and 105 to 125 total executive jet deliveries (70-80 light jets and 35-45 large jets). The Company expects deliveries for both the Commercial Aviation and Executive Jets segments to improve in second quarter 2018(2Q18). Revenues in the quarter were US$ 992.0 million, representing a year-over-year decline of 4.8% compared to first quarter 2017 (1Q17), largely as a result of the lower commercial and executive aircraft deliveries in the period, partially offset by revenue growth in the Defense & Security (up 62.9% year-over-year) and Services & Support (up 4.0% year-over-year) segments.
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Consolidated gross margin improved from 16.7% in 1Q17 to 18.3% in 1Q18, driven by year-over-year improvement in the Commercial Aviation, Executive Jets, and Defense & Security segments.
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EBIT and EBIT margin as reported in 1Q18 were US$ 26.4m and 2.7%, respectively. This compares to EBIT of US$ 40.6m and EBIT margin of 3.9% in 1Q17. The decline in EBIT and EBIT margin as reported are principally due to the lower delivery volumes and consolidated revenues in 1Q18, which impacted the Company’s fixed cost dilution as compared to 1Q17. The Company’s 1Q18 reported EBIT results do not include any special items.
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Net income (loss) attributable to Embraer shareholders and Earnings (Loss) per ADS for 1Q18 were US$ (12.3)m and US$ (0.07) per share, respectively, compared to US$ 53.2m in net income attributable to Embraer shareholders and US$ 0.29 per share in Earnings per ADS in 1Q17. Adjusted net income (loss), excluding deferred income tax and social contribution and the total after-tax impacts of any special items booked in the period, was US$ (24.6)m in 1Q18, and Adjusted earnings (loss) per ADS was US$ (0.13). This compares to Adjusted net income (loss) of US$ 40.4m and Adjusted earnings per ADS of US$ 0.22 in 1Q17.
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WOW air's first A330neo aircraft has rolled out of the paint shop in Toulouse. The low-fare airline based in Iceland will take delivery of the aircraft on lease from Avolon later in 2018, becoming the third operator of the type worldwide.
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WOW air is an all-Airbus operator with a fleet of 18 aircraft (15 A320 Family and three A330s). The Airbus fleet will increase to 24 aircraft by the end of 2018.
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WOW air was founded in November 2011 and currently serves 36 destinations across Europe, North America and Asia. WOW air selected the A330neo for its low operating costs and excellent fuel efficiency. The aircraft will feature a twin-class cabin layout with 42 premium economy seats and 323 economy seats.
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Dubai Aerospace Enterprise's (DAE) leasing division, DAE Capital, has delivered its first new Boeing 787-9 Dreamliner to Bahrain flag carrier Gulf Air. The delivery took place at the Boeing delivery center in Everett, USA.
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DAE first announced the agreement to lease five Boeing 787-9 Dreamliners with PDP financing to Gulf Air in November of last year. The delivery of this aircraft is the first 787-9 to enter both Gulf Air’s fleet as well as DAE’s fleet.
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GE has chosen Dedienne Aerospace as a tooling licensee for the GE9X™ engine. Dedienne and GE have collaborated on many projects and developed a strong relationship.
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Starting this year, Dedienne will sell, maintain, support, provision, test, calibrate, lease and service GE9X engine tooling. Dedienne Aerospace’s entire global operations will be focused on GE9X customer support, while a large service center will be opened in Cincinnati to serve as the central operations for supporting GE Aviation, the GE9X engine program and GE’s customers.
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Dedienne Aerospace has already proven itself as an official Boeing licensee. Now, as a provider of GE9X engine tooling, Dedienne will be able to offer a comprehensive tooling solution to GE9X and 777X customers around the globe.
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Aero Star Aviation has received FAA Part 145 repair station certification for its Dallas Love Field (DAL) location.
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Aero Star's Dallas, TX facility opened in 2013 and has provided specialized maintenance for Embraer Phenom 100 and 300 aircraft with additional capabilities on Cessna Citation 500 and 600 series aircraft. The facility offers scheduled maintenance, pre-purchase inspections, engine change, line maintenance, wheel assembly exchange program and AOG support for aircraft.
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A British team of scientists at TLX Cargo have invented the world`s first Cargo Cover/Thermal blanket that incorporates Phase Change Material (PCM) into it`s structure, solved the problem of hot lane temperature excursions on the tarmac.
The TLX PCM cargo cover is launched this week by Sales Director, Thomas Hunt.
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Says Hunt, “TLX PCM is designed to remove the problem of the temperature spike seen on most pallet data loggers in air cargo when the pallet is off-loaded on to the tarmac at hot locations. It’s a game-changer in the Temperature Controlled Logistics sector solving problems such as: excursions on 15-25oC routes, power outages on 2-8 oC routes, upgrading and reducing the size of parcel shippers along with controlling temperatures of ULD’s for perishables.”
TLX PCM cargo covers combine an outer surface that Reflects 97% of thermal radiation over the measured spectral range with TLX PCM Fibre-Flex technology within the structure of the cover, that remains flexible even when frozen and can be molded around corners, whilst being thin light and easy to handle.
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In its liquid state the PCM fibre will hold the PCM in any orientation, which means TLX Fibre-Flex can be used for walls as well as the top of cargo covers.
Traditional PCM’s are expensive and difficult to use. They crystallize into a frozen block but even in a liquid state they must be contained in rigid containers or gel packs. PCM packs have the potential to burst if pressure is applied,
corners and joins in rigid packaging create gaps that are thermal weak points. On top of everything else traditional PCM’s are heavy and difficult to apply in thin layers. The TLX Cargo revolutionary invention solves all these problems.
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Says Jim Smith, Head of Insulation Technology at TLX “This has been a challenging project for us. It was an entirely new area of research aimed at solving the problem of the temperature spike in Cool Chain transport. We’re very happy with the result. Our 15-25 oC blankets freeze at around 18oC (i.e. in the aircraft hold) and then, once out in the sun on the tarmac, they inhibit the heat build-up within the pallet load by absorbing the heat from the sun. The beauty of this system is that this freezing and melting process can be repeated continuously through the journey as the pallet is loaded and off-loaded on to the tarmac.” Phase change materials are able to absorb energy as they change from a solid to a liquid, so they can act as heat buffers. How long they absorb heat for is dependent on the ambient temperature.
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Hunt is positive about the future; “The remarkable thing about this technology is that PCM’s don’t need to be expensive. This opens up a huge range of opportunities for us in providing the kind of problem/solution service we thrive on.”
TLX Cargo Ltd is part of TLX Insulation based in Lancashire UK. TLX Insulation Ltd manufactures PCM thermal blankets for pallets on 15-25oC and 2-8oC routes. They also make pouches of various sizes for pharma, perishables and performance clothing.
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Airbus has appointed Grazia Vittadini, Chief Technology Officer (CTO). In her new capacity, Vittadini will report to Airbus Chief Executive Officer (CEO) Tom Enders and join the company’s Executive Committee as of May 1, 2018.
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Currently, Grazia Vittadini is serving as Executive Vice President of Engineering within Airbus Defence and Space. She succeeds Paul Eremenko, who left the company at the end of last year. Since Paul Eremenko’s departure, Marc Fontaine, Airbus’ Digital Transformation Officer, served also as acting CTO.
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Ventura Air Services has committed to secure a supplemental type certificate (STC) from the Federal Aviation Administration (FAA) for the installation and operation of a SmartSky 4G LTE system on the Bombardier Learjet 55. There are more than 100 Learjet 55s currently in service in the United States. The aircraft holds up to 8 passengers and two crew.
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The SmartSky 4G LTE system received its first STC in January and parts manufacturer approval (PMA) in March. It expects additional STCs to begin to be available this summer. Network implementation efforts currently underway across the continental United States are continuing to expand. More than 60% of the sites needed to provide U.S. coverage are now in their final stages of deployment.
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The Learjet 55 is the primary aircraft operated by Ventura Air. This growing New York-based charter management company uses both private jets and helicopters to offer 24/7 first-class transportation solutions.
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C&L Aviation Group has signed an agreement to market Sweden-based Täby Air Maintenance’s (TAM’s) Saab 340B Cargo Conversions in the Americas. As part of the agreement, C&L is also an approved sales and installation center.
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TAM’s EASA- and FAA-approved cargo conversion STC is well-proven and provides a highly cost-effective way to convert this fuel-efficient passenger aircraft into a profitable freighter, capable of carrying 1,280 cu ft of cargo.
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This alliance has TAM marketing the conversion in Europe and C&L marketing the conversion in the Americas. Combined, they provide a globally uniform cargo solution for the Saab 340 fleet.
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“We researched the available options in the market, and found working with TAM made perfect sense, not only because of the quality of the conversion kit, but because working with a consistent model throughout the world helps to preserve the integrity and value of the Saab fleet,” said C&L CEO Chris Kilgour.
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“The first quarter performance reflects the shortage of A320neo engines and back-loaded aircraft deliveries as we indicated in the full-year disclosure. This is clearly shown in the financials,” said Airbus Chief Executive Officer Tom Enders. “It’s a challenging situation for all but based on the confidence expressed by the engine makers and their ability to deliver on commitments, we can confirm our full-year outlook. This still leaves us with plenty to do this year to reach the target of around 800 commercial aircraft deliveries.”
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A total of 45 net commercial aircraft orders were received (Q1 2017: six aircraft) with gross orders of 68 aircraft including 20 A380s for Emirates Airline. The backlog by units totalled 7,189 commercial aircraft as of 31 March, 2018. Net helicopter orders increased to 104 units (Q1 2017: 60 units), including 10 H160s and 51 additional Lakota UH-72As for the US Army to bring the total orders in the programme above 450 helicopters.
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Consolidated revenues totalled €10.1bn (Q1 2017: €11.4bn), mainly reflecting lower commercial aircraft and helicopter deliveries. Airbus deliveries totalled 121 commercial aircraft (Q1 2017: 136 aircraft), comprising 95 A320 Family, 8 A330s, 17 A350 XWBs and one A380. Airbus Helicopters delivered 52 units (Q1 2017: 78 units) with its revenues also reflecting the deconsolidation of services business Vector Aerospace in late 2017.
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Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – totalled €14m (Q1 2017: €-19m).
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Airbus’ EBIT Adjusted of €-41m (Q1 2017: €-103m) mainly reflected the back-loaded aircraft delivery phasing, compensated by A350 improvements in both unit cost and price.
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Airbus Helicopters’ EBIT Adjusted was stable at €-3m (Q1 2017: €-6m), supported by the Division’s transformation efforts compensating market softness.
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Consolidated net income totalled €283m (Q1 2017: €409 million) with earnings per share of €0.37 (Q1 2017: €0.53) also including a positive impact mainly from the revaluation of certain equity investments. The finance result was €39m (Q1 2017: €-206m).
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The consolidated net cash position on March 31, 2018 was €9.8bn (year-end 2017: €13.4bn) with a gross cash position of €20.9bn (year-end 2017: €24.6bn).
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UPCOMING EVENTS
June 5, 2018 – Jury’s Inn Hotel, Prague
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