Daily2018-02-20

Friday, October 26th, 2018

beachaviationsponsor2018-04-03

LATEST NEWS

British Airways’ recent cyber-attack may have affected up to 185,000 more customers

According to International Airlines Group (IAG), owner of British Airways, since its announcement on September 6 that up to 380,000 customers may have had their personal data, including credit card details, compromised, further investigation of the incident has revealed the possibility that an additional 180,000 customers’ data may also have been compromised. At the same time, they have reduced their estimate of initial numbers to 244,000, making the overall total of affected customers 424,000.

While British Airways has made it very clear the airline will compensate any customers for direct financial losses incurred as a result of the breach in data security, so far it has yet to learn of any verified instances of fraud since the original announcement. The airline also confirmed that only those customers who made reward bookings between April 21 and July 28 and who used a payment card could have been affected.

According to a news release from the carrier: “While we do not have conclusive evidence that the data was removed from British Airways’ systems, we are taking a prudent approach in notifying potentially affected customers, advising them to contact their bank or card provider as a precaution. Customers who are not contacted by British Airways by Friday 26 October at 1700 GMT do not need to take any action.”

On Thursday October 25, BA confirmed that it was in the process of notifying the holders of another 77,000 payment cards that the name, billing address, email address, card, payment information including card number, expiry date and security codes had potentially been compromised, plus an additional 108,000 without the security code.

The airline also confirmed that this was the most serious attack on its website and app. The attack took place only 15 months after its computer system failed at London Heathrow Airport, stranding 75,000 passengers during a holiday weekend.

Kellstrom

Airbus Helicopters expands presence in North American emergency medical services market with orders for six new aircraft

Airbus Helicopters is expanding its presence in the North American emergency medical services (EMS) market with the sale of six helicopters for two customers at the 2018 Air Medical Transport Conference, which took place in Phoenix, AZ from October 22-24.

REACH Air Medical Services will add three H125s and two H130s to its current fleet. The new aircraft slated for delivery later this year, will allow REACH to expand its service area while modernizing its fleet. Headquartered in Sacramento, Calif., REACH is a subsidiary of Global Medical Response (GMR), which provides critical care air transport service to communities throughout California, Oregon, Nevada, Montana, Texas, and Colorado.

Also at the show, Airbus welcomed a new customer – Medical Air Rescue Company (MARC) –which signed for its first Airbus helicopter, the H130. The acquisition is part of the company’s long-term plan to modernize its fleet and expand its operations into the challenging mountainous regions in Wyoming, where the aircraft will be based. Scheduled for delivery in December, the new aircraft will help the growing organization serve roughly 2,400 patients a year across South Dakota, Wyoming, Montana, Nebraska and Texas.

Iberia continues to expand services to Latin America and will fly Airbus A350s to Buenos Aires and Chicago

Iberia continues to bet strongly on Latin America and plans to raise capacity on several routes there in the 2019 summer season. The airline will boost the numbers of flights and seats offered on routes to Buenos Aires, Mexico City, Santiago de Chile, Guatemala City, and El Salvador this winter, and next summer it will expand its services to four other important markets as part of its Latin American strategy:

Brazil: last June, Iberia raised the number of Madrid-Rio de Janeiro flights from four to five weekly, and next July flights will be daily, representing more than 180,000 seats per year, a 32% increase.

Uruguay: Iberia will operate return Madrid-Montevideo flights starting in July, and will move from five to seven flights per week, a 20% increase in annual seat supply to more than 180,000.

Ecuador, Iberia is boosting its service to Quito, and starting next July will it rise from six flights a week to a daily flight, using its biggest aircraft, the Airbus A340/600, equipped with the new Premium Economy seating section. The additional flight represents an increase in seat supply by 9.4% to nearly 245,000 per year.

Peru: Iberia will offer 100 flights to Lima in July and August, with 2,154 additional seats on that route

In 2019, Iberia is to take delivery on another three Airbus A350s; this will enable the airline to use the Airbus A350 on other routes, starting with Buenos Aires and Chicago. These new aircraft are currently flying on Iberia’s Madrid-New York flights.

As of next February, the A350 will gradually be incorporated into Madrid-Buenos Aires service, and in the course of the year an Airbus A350 will be used for one of Iberia's daily flights between Spain and Argentina. The airline in concentrating its efforts on this key market, and will offer a total of 17 flights per week and 600,000 seats, an increase of 19% in 2019.

Chicago will become Iberia's second US destination after New York to welcome the A350 gradually from May.

EPlane

MTU Aero Engines raises forecast for nine months results

In the first nine months of 2018, MTU Aero Engines generated revenues of 3,318.7 million, up 14% on the previous year (1-9/2017: €2,900.8 million). The group’s operating profit increased by 16% from €439.9 million to €508.9 million. The EBIT margin stood at 15.3% (1-9/2017: 15.2%). Earnings after tax rose by 16% to €362.8 million (1-9/2017: €312.8 million).

The strongest increase in MTU’s revenues in the period January to September 2018 was attributable to the commercial engine business, where revenues grew by 28% from €943.1 million to €1,203.7 million. The main source of these revenues was the V2500 engine for the classic A320 family as well as the PW1100G-JM for the A320neo and the GEnx engine that powers the Boeing 787 and 747-8.

In the commercial maintenance business, revenues rose by 17% from €1,727.5 million to €2,019.7 million. This growth was driven mainly by the V2500 engine, followed by the CF34 family of regional and business jet engines. “Our engine leasing and asset management business, which is constantly being expanded to include new services, is also gaining importance,” CFO Peter Kameritsch said. MTU is addressing the growing future demand for maintenance services by expanding its MRO network: “At the end of September, we laid the foundation stone for our EME Aero joint venture with Lufthansa Technik in Poland for the maintenance of Geared Turbofan™ aircraft engines,” said Winkler.

Revenues in the military engine business remained stable at €303.1 million (1-9/2017: € 305.2 million). The EJ200 Eurofighter engine was the main source of these revenues.

At September 30, MTU had an order backlog of €15.3 billion, compared with €14.9 billion at December 31, 2017. The majority of these orders relate to the V2500 and the Geared Turbofan™ engines of the PW1000G family, in particular the PW1100G-JM for the A320neo.

LG Electronics and Lufthansa Technik establish joint venture for aircraft displays and systems

LG Electronics (LG) and Lufthansa Technik AG will jointly develop, produce and market LG's innovative OLED displays for commercial airplane cabins, the companies announced on October 25. The new venture will be based in Hamburg, Germany and will commence operation in the first half of 2019.

The new joint venture will combine LG's advanced, lightweight and flexible OLED display technology with Lufthansa Technik's aviation business capabilities to create new markets for on-board aircraft applications such as welcome board screens and interior linings.

Closing of the agreement, which was inked earlier this week in Hamburg, is subject to regulatory approval.

AFIKLM787

AeroCentury completes aircraft sales

AeroCentury, an independent aircraft leasing company, has completed several aircraft sales transactions.

AeroCentury recently sold one DHC8-400 MSN 4019 to Voyageur Avparts, Inc. as well as a Saab 340B MSN 321 to Worthington Aviation, LLC. In addition, AeroCentury recently sold two Fokker 50s MSN 20177 and 20122 and one DHC8-300 MSN 404 to Silverstone Air Services Limited and Jetways Airlines Limited in Kenya.

These transactions are part of the Company’s efforts to sell older aircraft and renew the portfolio which now stands at 27 aircraft with an average age of 12 years.

StandardAero awarded option year for U.S. Navy P-8A CFM56-7 engine MRO support contract

StandardAero has been selected as the U.S. Navy's primary engine depot for support of the CFM56-7 engines used on the P-8A aircraft.

This is the 2nd straight year StandardAero has been selected to perform this work, which is carried-out under a U.S. Federal government Indefinite Delivery/Indefinite Quantity (IDIQ) type contract that is competed and awarded each year among the U.S. Navy’s approved sources. The contract supports the U.S. Navy, the Government of Australia and other foreign military sales (FMS) customers.

The P-8A is a Maritime Patrol Aircraft that is the replacement for the P-3 aircraft, which was introduced into service in the early 1960s. The CFM56 engines, used on the P-8A aircraft, are a commercially developed platform, capable of generating more than 27,000 pounds thrust.

StandardAero has been supporting the U.S. Navy for more than 20 Years, providing MRO support across a number of engine and aircraft platforms. Under P-8A award, StandardAero will provide depot level repair and overhaul for the propulsion systems used to power this critical U.S. Navy Mission.

Component Control

IATA outlines urgent priorities to minimize Brexit impacts

The International Air Transport Association (IATA) has called for urgent action by the UK and the European Union to put in place contingency planning for the continuation of air services in the event of a ‘no-deal Brexit’, and to move much faster to bring certainty to three critical air transport issues: the uninterrupted continuation of air connectivity, the framework for regulating safety and security, and he policies and processes needed for efficient border management

“These are the most critical areas because there are no fallback agreements such as the WTO framework available in a ‘no-deal’ Brexit scenario. Without any contingency planning being made transparent to the industry, the risks of not addressing these issues could mean chaos for travelers and interrupted supply chains. With less than six months to go, we have little more certainty than we did in June 2016,” said Alexandre de Juniac, IATA’s Director General and CEO.

Even in the best-case scenario, where a Brexit transition phase is agreed for the period after March 2019, a high degree of uncertainty and risk to air services remains. A no-deal or “hard” Brexit outcome, without an agreement for a transition period, is likely to lead to significant disruption to air services. Moreover, the lack of transparency concerning any contingency planning for this scenario has left airlines completely in the dark as to what measures to take.

“The EU and UK have a responsibility to millions of their citizens who depend on reliable air transportation. The goal should be a comprehensive air services agreement that does not step backwards from the connectivity existing today. But with the possibility of a ‘no deal’ Brexit still on the table this late in the game, it is now essential that the EU and UK civil aviation authorities plan for contingency arrangements to maintain a minimum level of connectivity, which is vital for people and for business. This has to be one of the most important Brexit considerations. A backstop contingency plan to keep planes flying after March must be published, and quickly,” said de Juniac.

Boeing reports solid third quarter

The Boeing Company has reported third-quarter revenue of U$25.1 billion driven by higher defense volume and services growth. GAAP earnings per share increased to US$4.07 and core earnings per share (non-GAAP) increased to US$3.58 primarily driven by strong operating performance at Commercial Airplanes and a tax benefit related to a tax settlement. Results also reflect charges related to planned investments in the newly awarded T-X Trainer and MQ-25 programs. Boeing delivered strong operating cash flow of US$4.6 billion, repurchased US$2.5 billion of shares, and paid US$1.0 billion of dividends.

The company's revenue guidance increased US$1.0 billion to between US$98.0 and US$100.0 billion, driven by defense volume and services growth, inclusive of the KLX acquisition.

Operating cash flow guidance is reaffirmed at US$15.0 to US$15.5 billion. Full year GAAP earnings per share guidance is increased to between US$16.90 and US$17.10 from between US$16.40 and US$16.60 and core earnings per share (non-GAAP) guidance is increased to between US$14.90 and US$15.10 from between US$14.30 and US$14.50 driven by a lower-than-expected tax rate and improved performance at Commercial Airplanes.

C&L Aviation

American's third quarter profit down 50%

American Airlines Group has reported its third-quarter results, showing third-quarter 2018 pretax profit of US$456 million compared to US$1,063 million the previous year.

Pretax earnings excluding net special items for the third quarter of 2018 were US$688 million, a US$485 million decrease from the third quarter of 2017, driven by higher fuel prices. In addition, the company’s third-quarter pretax earnings were negatively impacted by Hurricane Florence by approximately $50 million.

Strong demand for air travel drove a 5.4% year-over-year increase in third-quarter 2018 total revenue, to US$11.6 billion. Passenger revenue per available seat mile (PRASM) grew 1.8%, driven by a 2.2% increase in passenger yields.

Cargo revenue was up 16.4% to US$260 million due to a 12.1% increase in yield and a 3.8% increase in volume. Other revenue was up 14.5% to US$738 million due primarily to higher loyalty revenue. Third-quarter total revenue per available seat mile (TRASM) increased by 2.6% compared to the third quarter 2017 on a 2.7% increase in total available seat miles.

The improvement in revenue was offset by the significant increase in fuel prices. Total third-quarter 2018 operating expenses were US$10.9 billion, up 12.4% year-over-year, driven by a 42.6% increase in consolidated fuel expense.

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