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Friday, August 31st, 2018
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LATEST NEWS
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The UK’s aerospace trade organization ADS Group has cautioned that despite the global aerospace industry remaining on track for 2018 to be a record year, a no-Brexit exit by the UK next March could create immense disruption.
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According to figures gathered by ADS, this year’s commercial aircraft deliveries reached 809 at the end of July, exceeding last year’s total by 37, according to data collected by ADS. Figures cover reported deliveries of commercial aircraft by Airbus, Boeing, and Bombardier.
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July proved a record month, as the OEMs delivered nine more aircraft than the 107 they shipped during the same period in 2017. The industry’s order book backlog remained above 14,000 aircraft for the eighth month in a row. The 116 Airbus, Boeing, and Bombardier aircraft delivered in July are worth up to US$2.58 billion to the UK’s aerospace industry.
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According to ADS chief executive Paul Everitt: “Aerospace manufacturers in the UK and around the world are continuing to boost production and the latest delivery figures show we can be confident of another new record in 2018.” However, he also warned that the UK’s greatest risk to its ability to compete in international markets resides in “the threat posed by the country leaving the European Union with no deal.”
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One of the most pressing problems facing the British aerospace industry is that while the UK government last week published its first set of technical notices explaining how British businesses and citizens should prepare for a possible no-deal Brexit next March, none of the first 25 or so notices included aviation.
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The International Air Transport Association (IATA) announced healthy global passenger demand for July with all regions reporting growth. Total revenue passenger kilometers (RPKs) rose 6.2%, compared to the same month last year. While this was down from 8.1% year-over-year growth in June, it nevertheless marked a solid start to the peak passenger demand season. Monthly capacity (available seat kilometers or ASKs) increased by 5.5% and load factor rose 0.6 percentage point to a record high for July of 85.2%.
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July international passenger demand rose 5.3% compared to July 2017, which was a deceleration compared to the 8.2% growth recorded in June. Total capacity climbed 4.7%, and load factor edged up half a percentage point to 85.0%. All regions reported growth, led by Asia-Pacific for the first time in three months.
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Asia-Pacific airlines’ July traffic rose 7.5% over the year-ago period, a slowdown compared to June growth of 9.6%. Capacity increased 6.0% and load factor rose 1.1 percentage points to 82.1%. Growth is being supported by a combination of robust regional economic growth and an increase in route options for travelers.
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European carriers posted a 4.4% rise in traffic for July compared to a year ago, down from 7.1% annual growth in June. On a seasonally-adjusted basis, passenger volumes have been tracking sideways for the past three months, reflecting mixed developments on the economic front and possible traffic impacts related to air traffic control strikes across the region. Capacity rose 3.9%, and load factor climbed 0.5 percentage point to 89.1%, highest among the regions.
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Middle East carriers had a 4.8% increase in demand for July, well down on the 11.2% growth recorded for June, although this mainly is attributable to volatility in the data a year ago, rather than any major new developments. The region has been negatively impacted by a number of policy measures over the past 18 months, including the ban on portable electronic devices and travel restrictions. July capacity climbed 6.5% compared to a year ago and load factor dropped 1.3 percentage points to 80.3%.
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North American airlines’ traffic climbed 4.1% compared to July a year ago. This was down from 6.0% growth in June, but still ahead of the 5-year average pace for carriers in the region as strong momentum in the US economy is helping underpin a pick-up in international demand for airlines there. July capacity rose 2.8% with the result that load factor climbed 1.1 percentage points to 87.2%, second highest among the regions.
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Latin American airlines experienced a 3.8% rise in traffic in July, the slowest growth among the regions and a decline from 5.6% year-over-year growth in June. Capacity rose 4.6% and load factor slid 0.6 percentage point to 84.2%. Signs of softening demand have come alongside disruption from the general strikes in Brazil.
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African airlines’ July traffic rose 6.8%, second highest among the regions. Although this represented a decline from 11.0% growth recorded in June, the seasonally-adjusted trend remains strong. Capacity rose 3.9%, and load factor jumped 2.1 percentage points to 76.0%. Higher oil and commodity prices are supporting economies in a number of countries.
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Embraer Services & Support and LOT Polish Airlines, the national carrier of Poland, have signed an extension of the pool agreement to support LOT’s fleet of 34 Embraer E-Jets.
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In a multi-year deal, Embraer’s popular component support solution includes exclusive on site stock for LOT as well as extended scope of engine line-replaceable units (LRUs) for E190/E195s. The program will support LOT’s current fleet of 18 Embraer E170/E175s and up to 16 Embraer E190/E195s – it includes additional six Embraer E195s that LOT leased in 2018 from Nordic Aviation Capital (NAC A/S) already in operation and four new Embraer E190 that the airline will be operating from January 2019.
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Thomas Global’s TFD-7000 Series flight displays have been selected by a major North American operator for installation in its fleets of Boeing 757 and 767 aircraft.
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The new displays leverage Thomas Global’s pioneering Adaptive Display Architecture™ CRT-to-LCD technology and follow the company's introduction of the technology across a range of other commercial aircraft types. Installation will begin in early 2019.
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The TFD-7000 Series displays are plug-and-play active matrix LCD replacements for legacy Rockwell Collins EDU-776C/D and EDU-766C/D cathode ray tube (CRT) displays installed in Boeing 757, 767 and 737 Classic flight decks. The new displays feature advanced growth capabilities to support a range of future functionality.
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Developed with input from leading operators, the TFD-7000 Series displays significantly reduce maintenance costs compared to keeping the legacy CRT displays, and eliminate the obsolescence threat and last-time buy commitments associated with CRT technology. In addition, the TFD-7000 Series helps operators to avoid more extensive and expensive full flight deck retrofits – while sustaining aircraft operations and meeting operational requirements. The new displays offer quick plug-and-play conversion, are fully interchangeable and intermixable with existing CRT displays and require no changes to flight deck wiring or panels and no crew retraining.
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Vallair, the aircraft trading, leasing and specialist MRO organisation, has added a further A321 aircraft (MSN1017) to its portfolio under lease.
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The aircraft was purchased from Plane Business and it forms part of Vallair’s recent purchase of six A320 family aircraft, all of which will be attributed to short term lease agreements. These aircraft will ultimately serve as ongoing feedstock for the Company’s launch of the Airbus A321-200 P2F cargo conversion programme.
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A full maintenance ‘C’ check will be carried out in Thailand prior to arrival at Vallair’s MRO facility in Montpellier, France, before hand-over to the new lessee airline.
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Danish Air Transport (DAT) has acquired 60% of Nordic Regional Airlines AB (Norra) from Finnair, which held the 100% stake in Norra on an interim basis after Norra’s previous owners who held 60% of shares exited the business in November 2017.
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Finnair continues to own 40% of the company. As such, the transaction has no impact on Norra’s operations, personnel or purchase agreement between Finnair and Norra. Norra operates Finnair’s domestic and European routes with a total of 24 ATR and Embraer aircraft.
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“Finnair’s and Norra’s partnership model in domestic and regional purchase traffic has served us well, and the Danish Air Transport will strengthen the partnership even more. They have solid experience in operating regional traffic with an ATR-fleet”, says Jaakko Schildt, Finnair’s Chief Operating Officer.
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“We know there are great opportunities in a strategic partnership. We can strengthen our technical and operational knowledge. The companies have the same size and both flies with ATR aircraft, which gives operating and purchasing advantages. With our knowledge on scheduled and charter flights, together with Norra's knowhow, we can develop the business together. And with new options on the Embraer 190 aircraft, that fits into our niche charter production," says Jesper Rungholm, Director in DAT.
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The first A380 for All Nippon Airways (ANA) has rolled out of the final assembly line (FAL) in Toulouse. The aircraft has now been moved to an outside station where various ground tests will be undertaken in preparation for first flight in the coming weeks. The aircraft will then be transferred to the Airbus facilities in Hamburg for cabin installation and painting.
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ANA HOLDINGS INC. placed a firm order of three A380s in 2016, becoming the first customer for the superjumbo in Japan. The first delivery is scheduled early in 2019, and the A380 will initially be operated on the popular Tokyo-Honolulu route.
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The A380 is the most efficient solution to meeting growth on the world’s most heavily travelled routes, carrying more passengers with fewer flights at lower cost and emissions.
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To date, Airbus has delivered 229 A380s, with the aircraft now in services with 14 airlines worldwide.
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Ethiopian Airlines, the largest Aviation Group in Africa has finalized an agreement with the Government of Chad for the launch of Chad national carrier. Ethiopian has a 49% stake in the joint venture while the Government of Chad retains 51%.
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The new Chad National Carrier is planned to go into operation as of October 1, 2018.
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Through its multiple hubs strategy in Africa, Ethiopian currently operates hubs in Lomé (Togo) with ASKY Airlines and Malawian in Lilongwe (Malawi), while having the already acquired stakes in Zambia’s and Guinea’s national carriers and making preparations to launch Ethiopian Mozambique Airlines.
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Boeing and GOL Linhas Aéreas Inteligentes have unveiled the carrier's newly outfitted 737 MAX 8 during a celebration in Sao Paulo. The leading Brazilian carrier also announced plans to fly the more fuel-efficient and longer-range 737 airplane on international routes.
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The Brazilian airline took delivery of its first 737 MAX 8 this year and has been improving onboard products and services, such as adding wireless internet to the popular Boeing Sky Interior cabin. The airline is now outfitting its second 737 MAX airplane – which it received last week – with the same cabin amenities.
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As part of its strategic fleet renewal program, GOL has placed multiple orders for the 737 MAX, including a new order last month at the Farnborough International Airshow. In all, GOL is on track to become the largest MAX operator in Latin America with a fleet of 135 MAX airplanes.
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The first MAX airplanes arriving at GOL are the MAX 8 variant, which seats up to 186 passengers in GOL's configuration. The airplane will reduce GOL's fuel use and emissions by 15% and can fly farther than its predecessor. With the additional range, GOL said it will begin regular service from Brazil's capital Brasilia and Fortaleza to Miami and Orlando. GOL also plans new international routes to Quito, the capital of Ecuador, with the MAX.
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SkyWest has released financial and operating results for the second quarter 2018, including net income of US$76 million compared to net income of US$50 million for the second quarter of 2017. Pre-tax income of US$98 million increased 21% from the previous year and was primarily due to SkyWest’s ongoing fleet transition. Since the second quarter 2017, SkyWest has added 23 new E175 aircraft and removed 34 CRJ700/CRJ900 aircraft and 32 CRJ200/ERJ145 aircraft.
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Revenue was US$806 million in the second quarter, up from US$792 million in 2017. The increase in revenue included the net impact of adding 23 new E175 aircraft and other economic improvements within SkyWest’s fleet mix since the second quarter 2017, partially offset by the removal of unprofitable or less-profitable aircraft over the same period.
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Operating expenses were US$679 million, down from US$685 million in 2017. The decrease in operating expenses was primarily due to the reduction in direct operating costs with the net removal of 43 aircraft from service.
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SkyWest has signed a new agreement to operate 20 new CRJ900s for Delta Air Lines under a nine-year term, replacing 20 CRJ700s expiring from contract and a new agreement to place 20 used CRJ700s with American Airlines under a four-year term. Furthermore SkyWest has signed a three-year extension on 19 CRJ700s scheduled to expire in 2019/2020 with United Airlines and has reached a new agreement to place 20 internally-sourced CRJ200s under a three-year contract with United.
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