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Thursday, November 1st, 2018
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LATEST NEWS
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Spirit AeroSystems Holdings (Spirit), headquartered in Wichita, Kansas, USA, and one of the world’s largest non-OEM designers and manufacturers of aerostructures for commercial and defense aircraft has released its financial results for the third quarter of 2018.
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Commenting on the results, the Company President and CEO, Tom Gentile, confirmed that: "A full schedule recovery and subsequent cost reduction of the 737 line has been a primary focus while sustaining execution across all programs. We made great progress continuing to improve the consistency and efficiency of 737 deliveries during the quarter and are now fully recovered to our delivery schedule. All other programs, including the A320 and the A350, are on schedule. We are also on track to increase rates to 57 airplanes per month on 737 and 14 airplanes per month on the 787, both of which occur next year."
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Revenue: Spirit's third quarter 2018 revenue was US$1.8 billion, up from the same period in 2017, primarily driven by higher production deliveries on the Boeing 737 program and increased defense-related activity. Spirit's backlog at the end of the third quarter of 2018 was approximately US$48 billion,
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Operating income for the third quarter of 2018 was US$223 million, up compared to US$202 million in the same period of 2017. This increase was primarily due to the recovery of legal fees related to a recent court decision as well as margin recognized on the Airbus A350 program as a result of the adoption of ASC 606.
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Third quarter EPS was US$1.59, up compared to US$1.26 in the same period of 2017. Third quarter adjusted EPS was US$1.70, excluding the impact of the proposed Asco acquisition and debt financing costs, compared to US$1.26 in the same period of 2017.
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Cash from operations in the third quarter of 2018 was US$170 million, compared to US$291 million in the same quarter last year. Adjusted free cash flow in the third quarter of 2018 was US$130 million, compared to US$240 million in the same quarter last year.
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Cash balance at the end of the quarter was US$683 million. The company's revolving credit facility remained undrawn at the end of the quarter.
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Spirit delivered 431 Boeing, Airbus and business/regional shipsets in total for the third quarter 2018, compared to 404 for the same period in 2017.
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Airborne Maintenance & Engineering Services, a wholly owned subsidiary of Air Transport Services Group, has received FAA approval of repair specifications for selected aircraft parts using the Supersonic Particle Deposition (SPD) process commonly known as "cold spray."
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"This groundbreaking approval is the first step in making the cold spray process commercially available for use in aircraft repairs," said Greg Smith, Director of Engineering, Manufacturing and Repair at Airborne, "and it opens opportunities to seek approval for repairs of aircraft parts that are not currently repairable. Developing these emerging technologies is one of the values that we are providing our customers to meet their requirements in cost savings and reducing overall operational waste."
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The SPD process involves using a supersonic jet of expanded gas to spray metal powder onto a solid surface with sufficient energy to cause bonding with the surface. The material builds up and repairs the metal part or surface without creating a heat-affected zone.
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easyJet has confirmed that progress has been made towards its strategy to progressively operate even more sustainably and reduce noise from aviation operations.
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Partner and US start-up company, Wright Electric, has commenced work on an electric engine that will power a nine seater aircraft. Wright Electric partner Axter Aerospace already has a two seater aircraft flying, and the larger aircraft is expected to start flying in 2019. The prototype propulsion system for the nine-seat aircraft is four times more powerful than the system installed on the two-seat aircraft. Work will commence on an easyJet-sized aircraft by aircraft designer Darold Cummings.
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Wright Electric has also filed a patent for a motor that will be used in the larger aircraft. This exciting development suggests that the transition towards an all-electric commercial passenger jet capable of flying passengers across easyJet’s UK and European network is in sight. London - Amsterdam is Europe’s second busiest route with a strong demand for day return trips, potentially making it an ideal route for all electric plane flying, or what easyJet is calling an electric ‘flyway’.
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Pioneering has always been a core element of the airline’s strategy and since 2000 easyJet has reduced its carbon emissions per passenger per kilometre by over 32%.
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WestJet is expanding choice and connectivity for Calgarians when the airline begins operations between Calgary International Airport (YYC) and Hartsfield–Jackson Atlanta International Airport (ATL) next spring.
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WestJet is the only airline flying non-stop from Calgary to ATL, the world's largest airline hub – home of Delta Airlines, a WestJet codeshare partner since 2011. Together with Delta, via Hartsfield-Jackson airport WestJet will offer codeshare access to an extensive list of U.S. destinations including the southeastern United States and Gulf Coast and cities such as Memphis, Tenn., Charleston, S.C., New Orleans, La., Savannah, Ga., Pensacola and Panama City, Fla.
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Starting March 3, 2019, WestJet will fly six times weekly between Calgary and Atlanta, moving to daily on April 7, 2019.
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The Embraer E190-E2 demo aircraft with a striking “shark” paint scheme begins its demonstration tour of China November 1st, ending November 20th, as part of the E190-E2 worldwide demonstration tour.
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The aircraft will visit several challenging airports in China to show the capabilities of the quietest, cleanest and most efficient new generation single-aisle aircraft in the segment, especially when operating in demanding market.
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The tour of China follows successful tours of the US, Africa, Europe and most recently Asia Pacific where the E190-E2 demonstrated excellent long-range capability with flights of almost six hours.
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The demo trip also includes the aircraft’s debut at the 12th China International Aviation & Aerospace Exhibition that will take place from November 6 to November 11 in the southern Chinese city of Zhuhai.
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“At the end of this year, Embraer will deliver the first E190-E2 to Fuzhou Airlines, our E-Jets E2 launch customer in China. The efficiency and reliability of E-Jets E2 will enable airlines to profitably grow and open new markets.” said Guo Qing, Vice President of Sales and Marketing for China, Embraer Commercial Aviation.
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The E190-E2 is the first of three new E-Jets E2s that Embraer is developing to succeed its first-generation E-Jets. Compared to the first generation E190, the E190-E2 burns 17.3% less fuel and nearly 10% less than its direct competitor. This makes it the most efficient single-aisle aircraft on the market. The E190-E2 brings more flexibility with maximum range of up to 5300 km or about 1000 km longer than the first generation E190.
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Leonardo has signed a Memorandum of Understanding (MoU) with Kangde Investment Group of China within the framework of COMAC CR929 long range airliner programme, aiming at further growth of its presence in the Country. Leonardo will leverage competences and intellectual property developed in Italy while Kandge will provide the financial coverage for the programme.
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Following the finalization of the agreement the two partners will establish a joint venture named Kangde Marco Polo Aerostructures Jiangsu Co. Ltd., which will be responsible for the development, production and assembly of composite materials components for the CR929 aircraft. This will allow Leonardo to take further advantage of its proprietary technologies and capabilities for the development of a new long range airliner.
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China is expected to have requirements for more than 1,500 new wide body aircraft in the next twenty years. Leonardo is also looking at the development of the Chinese space industry and potential opportunities to collaborate in this growing market.
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Kangde Investment Group celebrated the laying of the foundation stone of the new facility in Zhangjiagang city, in the Chinese province of Jiangsu on October 26, where the carbon fibre fuselage sections for the new CR929 long-range airliner will be built.
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C&L Aerospace, a C&L Aviation Group company, has delivered a Saab 340B MSN 425 to Fly Corporate, based in Brisbane, where it will expand their passenger operations throughout Australia. The aircraft received air-worthiness checks at the C&L maintenance facility in Bangor, Maine before its departure.
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“We have had a very positive experience working with C&L,” said John Paul, AMO Manager at Corporate Air. “The team on the floor was hugely helpful and extremely motivated, generally going above and beyond to ensure a smooth delivery. It certainly helped to have an experienced team that knows our aircraft well.”
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The transaction is the most recent deal in a relationship that spans the past 7 years.
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Turkish Airlines has launched a new era in Turkish Aviation with the opening of Istanbul New Airport. The airport will be home to Turkey’s national flag carrier and establishes Istanbul as the centre of the globe for aviation and travel. Upon final completion, the airport will welcome 200 million passengers a year.
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The opening of the new aviation hub, combined with the dynamism and energy of Turkish Airlines, will usher in a new era for the carrier. Turkish Airlines is presently operating a limited number of domestic and international routes from the new airport. On 31st December, all operations will move from Istanbul Atatürk Airport to Istanbul Airport.
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At the opening ceremony, M. İlker Aycı, Chairman of the Board and the Executive Committee of Turkish Airlines commented: “Turkish Airlines starts an exciting new chapter today as we move to our new home at Istanbul Airport. The new hub of our national flag-carrier plays an important role in Turkish Airlines’ future growth strategy and will offer a seamless experience for all our passengers.”
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Turkish Airlines will soon be able to increase its network extension capacity and opportunities for new routes and timings, allowing growth in both passenger and cargo transportation.
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The megaproject is being developed in four phases with the final phase set to be complete in 2028. In all, the complex will occupy an area of 76.5 km², with six runways, four terminals and 233 aircraft parking positions.
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It will have the capacity to serve up to 200 million passengers a year with 500+ check in desks and 225,000 employees. Upon completion of the final phase, the largest international flight hub will incorporate offices, residences, hotels, a health centre, culture and art buildings, a shopping mall, designer outlets, an EXPO convention centre, and meeting and training facilities.
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Swiss-AS has announced the smooth AMOS go-live of Binter Technic, an ATR maintenance, repair and overhaul centre based in the Canary Islands..
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Right from the beginning, the project had a strict timeline as the go-live was planned to take place before Binter’s high season starts. Thanks to the dedicated key users, the ambitious timeline for the cut-over was successfully completed with an on-time go-live. The big bang cut over was very smooth with hardly any disruption to the ongoing maintenance projects and the Binter workforce rapidly integrated the new processes.
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Binter Technic decided to perform all related project tasks in-house. While other companies may engage third parties to outsource time-intensive project tasks, such as data migration or change management, Binter Technic was in the fortunate position of having the required resources and skills available in-house.
The project was characterized by the strong personal dedication and effort of the project team. During the go-live, the Binter Technic key users and the Swiss-AS onsite team joined forces to finalize this implementation with a successful cut-over.
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Binter Technic has chosen the AMOS Airline/MRO Edition, being the perfect fit for them, as they provide line and base maintenance for the ATR fleet of Binter Canarias whilst also competing for third-party maintenance contracts outside the Binter Group.
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Liebherr-Aerospace is continuing to expand its presence in China. The company is growing and strengthens further its support to COMAC and to the customers of the Chinese aircraft manufacturer by different measurements at its liaison and customer service center in Shanghai.
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The Chinese aviation industry is developing rapidly and so are the activities of Liebherr-Aerospace locally in the People’s Republic. In line with the Liebherr philosophy of promoting organic growth, the company is committed to a long-term, reliable cooperation with its customers and partners in China.
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The liaison and customer service center of Liebherr-Aerospace in Shanghai with a total floor area of 3,700 m² offers services in maintenance, repair and overhaul. These include, for example, the maintenance of bleed air and air conditioning systems including air cycle machines. In addition, the center also offers the dynamic testing of components for air conditioning and pneumatic systems (ATA 21, 36) for Airbus single aisle and long range aircraft, Bombardier and Embraer aircraft and COMAC’s ARJ21-700. Moreover, Liebherr-Aerospace China can also service flight control and hydraulic components (ATA 27, 29).
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Recently, new capabilities for the repair of ARJ21 components were added. Furthermore, the technical support, engineering and flight test support teams were expanded and provide enhanced support for the operation of the ARJ21 as well as for the support for the C919 flight test program.
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The continuous growth of Liebherr-Aerospace in China can also be seen in the positive development of the joint venture of Liebherr-Aerospace Lindenberg GmbH (Germany) and LAMC (AVIC Landing Gear Advanced Manufacturing Corporation), called Liebherr LAMC Aviation (Changsha) Co., Ltd. which was founded in 2012 to develop and manufacture landing gear systems for the Chinese aerospace industry and the international market.
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The number of Chinese suppliers is to be gradually increased so that the joint venture can continue to remain internationally competitive with an increasingly independent location.
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A further important part in Liebherr’s strategy in China is the cooperation between Nanjing Engineering Institute of Aircraft Systems (NEIAS) and Liebherr-Aerospace Toulouse SAS (France) with the aim of designing and producing components for the C919 air management system.
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Airbus has reported nine-month (9m) 2018 consolidated financial results and provided updated full-year guidance.
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“The nine-month results mainly reflect the good performance on the A350 and the aircraft delivery profile. Even though we delivered more aircraft than a year earlier, we still have a lot to do to meet our commitments,” said Airbus Chief Executive Officer Tom Enders. “On the A400M, we are progressing with the military capabilities, deliveries and retrofit. The contract amendment discussions are advancing, but a bit slower than planned. Our primary operational focus remains on commercial aircraft deliveries and securing the A320neo ramp-up.”
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As of 1 July 2018, the A220 aircraft programme has been consolidated into Airbus.
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Net commercial aircraft orders totalled 256 (9m 2017: 271 aircraft) with gross orders of 311 aircraft including 58 A350 XWBs. Industry fundamentals remain solid with the Airbus order backlog totalling 7,383 commercial aircraft as of 30 September 2018. Net helicopter orders increased to 230 units (9m 2017: 210 units), including 6 Super Puma Family and 36 H145s in the third quarter alone. Airbus Defence and Space’s 9m 2018 order intake of around €5.0 billion included the contract for Heron TP drones from Germany.
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Consolidated revenues increased to €40.4 billion (9m 2017: €38.0 billion(1)), mainly driven by Airbus and including the perimeter changes. At Airbus, a total of 503 commercial aircraft were delivered (9m 2017: 454 aircraft), comprising 8 A220s, 395 A320 Family, 31 A330s, 61 A350 XWBs and 8 A380s. Airbus Helicopters delivered 218 units (9m 2017: 266 units) with revenues stable on a comparable basis. On a reported basis, Helicopters’ revenues reflected the perimeter change from the sale of Vector Aerospace in late 2017. Revenues at Airbus Defence and Space reflected a stable core business and the perimeter change mainly related to the divestment of Defence Electronics in February 2017 and Airbus DS Communications, Inc. in March 2018.
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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 €2,738 million (9m 2017: €1,208 million).
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Airbus’ EBIT Adjusted of €2,340 million (9m 2017: €806 million) was driven by the A350 performance and higher deliveries, particularly for the A320neo.
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On the A320neo programme, a total of 222 aircraft were delivered compared to 90 in the first nine months of 2017. On the A330neo programme, the A330-900 received Type Certification from the European Aviation Safety Agency in September with the first delivery expected shortly. Meanwhile, the A350 programme is progressing well, with the targeted monthly production rate of 10 aircraft expected by the end of 2018. Good progress continues to be made on A350 programme recurring cost with the A350-1000 benefitting from the A350-900 learning curve.
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Airbus Helicopters’ EBIT Adjusted increased to €202 million (9m 2017: €161 million(1)), reflecting solid underlying programme execution which compensated for the lower deliveries.
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Consolidated net income of €1,453 million (9m 2017: €1,398 million) and earnings per share of €1.88 (9m 2017: €1.81) included a negative impact from the foreign exchange revaluation of financial instruments partly offset by the positive revaluation of certain equity investments. The finance result was €-413 million (9m 2017: €+101 million). Net income also reflects a higher effective tax rate from the reassessment of tax assets and liabilities.
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Consolidated free cash flow before M&A and customer financing amounted to €-4,169 million (9m 2017: €-3,344 million) and now includes the A220. It reflects progress on aircraft deliveries but also the on-going ramp-up and some finished aircraft. Consolidated free cash flow of € -3,928 million (9m 2017: € -3,208 million) included around € 0.4 billion of net proceeds from divestments at Airbus Defence and Space. Cash flow for aircraft financing was limited.
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UPCOMING EVENTS
November 6 - 8, 2018 – Singapore
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February 19 - 20, 2019 – Palma de Majorca, Spain
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