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Wednesday, May 16th, 2018
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LATEST NEWS
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The World Trade Organization (WTO) has ruled that despite requests, the European Union (EU) has failed to stop all subsidies to Airbus, the result of which has seen the U.S threaten sanctions against European products until the EU stops “harming U.S. interests.”
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According to Reuters, “The WTO said the EU had failed to remove support in the form of preferential government loans for the world’s largest airliner, the A380, and Europe’s newest long-haul plane, the A350, causing losses for Boeing and U.S. aerospace workers.”
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However, the Geneva-headquartered WTO threw out U.S. claims that loans for Airbus’s most popular models, the A320 and A330, were costing Boeing significant sales.
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There are currently mounting tensions between the U.S and Europe over U.S. aluminum and steel tariffs, together with fallout expected after America’s withdrawal from the Iran nuclear pact. Boeing estimates the tariffs could involve billions of dollars a year, beginning as early as 2019.
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Tuesday’s finding draws to a close the case against the EU which dates as far back as 2004, consequently meaning that the U.S. can now turn to the WTO to back the imposition of sanctions on a list of as-yet-unknown European goods.
It should also be noted that the WTO is close to completing a similar and drawn-out case against subsidies for Boeing. Airbus has confirmed that such retaliation could spark EU sanctions against the United States.
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“Today’s report is really only half the story,” said Airbus Chief Executive Tom Enders.
It is anticipated both sides will look for billions of dollars in annually-paid sanctions, though the actual amounts will depend on arbitration, the results of which are unlikely to be provided for at least a year.
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In the midst of a fierce wage war, the Air France-KLM aviation group is changing the top management. Following the resignation of Jean-Marc Janaillac, the former Chief Financial Officer Frédéric Gagey will take over as Chief Executive Officer for the time being.
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Air France-KLM has appointed its Chief Financial Officer Frédéric Gagey as interim Group CEO. He replaces the previous boss Jean-Marc Janaillac, who announced his resignation a week ago. The reason for this was that the majority of employees had spoken out against Janaillac's salary proposal, which was intended to resolve the tough wage dispute at Air France.
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The airline's employees have been on strike for more money since February and there is no end in sight to the costly wage dispute. The unions demand a 5.1% wage increase for this year. Janaillac had offered 7% over four years.
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The first A330neo for launch operator TAP Air Portugal - MSN1819 - has completed its 4:32 hours maiden flight.
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The aircraft now joins the fleet of two A330-900 test aircraft already performing flight tests since October 19, 2017.
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MSN1819 is the first aircraft fitted with the Airspace cabin by Airbus. It is equipped with light Flight Test Instrumentation during its test phase to check cabin systems such as air conditioning, crew rest etc.
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AeroCentury Corp., an independent aircraft leasing company, has reported first quarter earnings of US$0.3 million, compared to US$6.02 million for the fourth quarter of 2017 and US$0.6 million for the first quarter of 2017.
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First quarter 2018 included US$1.1 million of other income resulting from cash received from the previous lessee of three aircraft that were returned to the Company during 2017. Such payments were for unpaid maintenance reserves as well as amounts due pursuant to the unsatisfied return conditions of the applicable leases and were not accrued by the Company at the time of lease termination based on management’s evaluation of the creditworthiness of the lessee.
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Therefore, the Company is accounting for payments as they are received and recorded in other income. Fourth quarter 2017 results included a US$5.4 million tax benefit arising from the revaluation of the Company’s deferred tax liability prompted by the passage of the Tax Cuts and Jobs Act of 2017.
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Turkish Airlines released that after a double-digit passenger increase in the first quarter of 2018, the number of passengers carried in April increased by 15%, reaching 6.4 million passengers. This is the highest April load factor in Turkish Airlines' history with 83.2%. Total load factor improved by 4.1 points compared to April 2017, with an increase of 6.1% in capacity. International load factor increased by 4.2 points to 82.6% and domestic load factor to 87.1%. •In April 2018, cargo/mail volume increased by 18%, compared to April 2017. The main growth areas were North America (+27%), Middle East, Africa and domestic lines (+26%) and Europe (+19%). April 2018 saw year-on-year increases in load factor in all regions. Notable regions were Africa, North America and Europe with 6 point, 6 point and 5 point increases, respectively.
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F. LIST GMBH (also known as F/LIST), an Austrian high-end business jet interior manufacturer, officially inaugurated the new 59,000-ft² production facility of F. LIST CANADA CORP. in the Greater Montréal area and announced plans to hire up to 100 specialists within the next two years.
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“Investing in Canada is very important to our company’s future growth and success in aerospace,” said Mrs. Katharina List-Nagl, Chief Executive Officer of F. LIST GMBH, during a ceremony held at the new plant on Boulevard des Rossignols in Laval. “F/LIST has a long and successful history in Canada, working very closely with Bombardier and other partners in the region. It made great business sense to set up our centre of Canadian operations here in Laval, where we are so close to so many great aerospace businesses and opportunities.”
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The Laval facility, which is the first manufacturing plant F/LIST has opened outside of Austria, represents an investment of more than CAN$20 million for the company, including CAN$10 million by the end of 2018. It provides high-quality wood veneers for business and executive jet interiors, finishing and assembling of interior components, refurbishment of interiors, and product and customer support. The facility also houses a showroom and a veneer selection area as part of its designation as F/LIST’s Veneer Competence Centre for flame retardant wood veneers, key components of its interior finishing business.
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F. LIST received financial support of CAN$1.2 million from the Government of Québec and CAN$1 million from Economic Development Canada for Québec regions towards infrastructure and equipment for the project totalling more than CAN$8.5 million by the end of 2018.
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SIAEC Group recorded a profit attributable to owners of the parent of SG$184.1m for the financial year ended 31 March 2018.
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Profit last year included a gain from the divestment of the Group’s 10% stake in Hong Kong Aero Engine Services (HAESL) to Rolls-Royce Overseas Holdings Limited (RROH) and Hong Kong Aircraft Engineering Company Limited (HAECO). Excluding the impact of this divestment, profit for the current financial year of SG$184.1 million was SG$12.1 million or 7.0% higher. After including the impact of this divestment, profit was lower by SG$148.3 million or 44.6% compared to the last financial year.
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Revenue at SG$1,094.9 million was 0.8% or SG$9.2 million lower year-on-year, mainly from lower fleet management revenue. Expenditure at SG$1,018.5 million was lower by SG$13.6 million or 1.3%, mainly due to decrease in staff and subcontract costs, offset partially by an exchange loss of SG$6.5 million compared to a SG$5.5 million exchange gain last year. The decrease in staff costs was due mainly to the absence of the provision made for the profit-linked component of staff remuneration arising from the gain on HAESL divestment last year, offset by annual salary increments and increase in headcount at subsidiaries.
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Operating profit of SG$76.4 million was SG$4.4 million or 6.1% higher year-on-year. Excluding the profit-linked component of staff remuneration arising from the gain on divestment last year, operating profit was lower by SG$16.9 million or 18.1%.
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Harald Wilhelm, Chief Financial Officer (CFO) of Airbus, has decided to leave the Company in 2019 in agreement with the Board of Directors.
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Harald Wilhelm has served Airbus and its predecessor companies for 27 years in various finance roles and he has been CFO of Airbus Commercial Aircraft for the last 10 years and on top group CFO for the last six years.
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Finnair is extending its cooperation with Widerøe and will add nine new destinations to its network in Norway. Widerøe (WF) is based in Norway and is Northern Europe’s largest regional carrier.
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Within the codeshare agreement, Finnair’s AY code will be added to several routes operated by Widerøe from Finnair’s current destinations in Norway - Oslo, Bergen and Tromsø. The codeshare agreement extends Finnair’s reach in Norway, and offers new connections for Finnair’s customers traveling to and from Norway.
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As of May 15, Widerøe operates Finnair’s flights from Helsinki to Bergen and Tromsø on Finnair’s behalf.
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TurbineAero has signed a definitive agreement to buy the assets of Triumph Aviation Services Asia Auxiliary Power Unit (APU) Repair Product Line (RPL) from the Triumph Group.
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The RPL purchase is the result of the exercise of an option provided to TurbineAero and its lead investor, The Gores Group, in the agreement to buy Triumph Air Repair, Triumph Engines – Tempe, and the APU Overhaul Operations of Triumph Aviation Services Asia (TASA).
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TurbineAero was founded February 9, 2017 upon the closing of the original acquisition. The RPL acquisition expands the services available from TurbineAero in Asia.
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RPL is based in Chonburi, Thailand, providing repair services for APU component parts. The transaction is subject to customary closing conditions.
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UPCOMING EVENTS
June 5, 2018 – Jury’s Inn Hotel, Prague
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