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Monday, February 18th, 2019
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East Midlands, U.K.- based low-cost carrier flybmi has filed for administration, citing ‘Brexit uncertainty’ as a principal reason for the company’s demise, along with spiking “fuel and carbon costs.” The airline ceased trading on Saturday, cancelling all flights without warning and leaving
thousands of holidaymakers stranded.
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According to a flybmi spokesperson: "It is with a heavy hear that we have made the unavoidable announcement today. The airline has faced several difficulties, including recent spikes in fuel and carbon costs, the latter arising from the EU's recent decision to exclude the UK airlines from full participation in the Emissions Trading Scheme.
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"These issues have undermined efforts to move the airline into profit. Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence around bmi's ability to continue flying between destinations in Europe.
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"Additionally, our situation mirrors wider difficulties in the regional airline industry which have been well documented.
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"Against this background, it has become impossible for the airline's shareholders to continue their extensive programme of funding into the business, despite investment totalling over £40m (US$52m) in the last six years.
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flybmi operated 17 small regional jet aircraft on routes to 25 European cities, and employed a total of 376 employees based in the UK, Germany, Sweden and Belgium.
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The demise of flybmi comes hot on the heels of other failed carriers including Monarch Airlines Airberlin, Niki and Germania.
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Air Canada has reported full year 2018 EBITDAR of CA$2.851 billion compared to full year 2017 record EBITDAR of CA$2.928 billion. Air Canada reported an EBITDAR margin of 15.8%, in line with its projections. Air Canada reported 2018 operating income of CA$1.174 billion compared to 2017 operating income of CA$1.371 billion. Adjusted pre-tax income amounted to CA$952 million in 2018 compared to adjusted pre-tax income of CA$1.165 billion in 2017.
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On a GAAP basis, the airline reported net income of CA$167 million in 2018 compared to net income of CA$2.029 billion in 2017. The decrease of CA$1.862 billion in net income year-over-year is mainly due to an increase in net tax expense of CA$981 million, unfavourable foreign exchange results of CA$437 million and Air Canada having a recorded a loss on disposal of assets of CA$188 million in 2018.
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With the Federal Aviation Administration (FAA) confirming the country’s complicity with international safety standards, Vietnamese airlines have been granted access to the U.S. commercial aviation market, allowing the country’s carriers to both fly to the U.S., and also codeshare with American carriers. Vietnamese airlines that will now be able to fly to the U.S. include Vietnam Airlines JSC, Bamboo Airways and VietJet Aviation JSC.
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There is an immediate concern that Vietnamese airlines may struggle to make routes to the U.S. profitable owing to a lack of high-paying business travelers. According to Reuters, Bamboo Airways Chairman Trinh Van Quyet confirmed that Bamboo Airways was considering destinations such as Seattle, Los Angeles and San Francisco, with the first route to open in late 2020 or early 2021. The airline has placed an order for 20 Boeing Co 787s for long-haul flights.
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Vietnam Airlines said it was in talks with Airbus and Boeing about potential jet purchases for the U.S. route, though these won’t arrive prior to 2022, but existing codeshares with Delta Air Lines could be expanded after the rating.
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Low-cost carrier VietJet confirmed its intention to acquire wide-body jets capable of non-stop U.S. flights, believeing its experience in keeping costs down will give it an effective business model.
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VietJet’s vice president To Viet Thang said in a statement: “We plan to open routes to cities with Vietnamese communities living in the United States such as in California, serving the large traveling and commercial demand from customers,”
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Amman based MRO Joramco, the engineering division of Dubai Aerospace Enterprise (DAE), has obtained EASA Part-145 approvals for two additional aircraft types, Boeing 737 MAX and Airbus A320neo.
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This is the third additional approval during the last six months following receipt of EASA Part-145 approval for Boeing 787 in September 2018.
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Firoz Tarapore, Chief Executive Officer of DAE commented: “The addition of these approvals marks a significant milestone in Joramco’s transformation journey led by Joramco’s CEO, Jeff Wilkinson. It reaffirms Joramco’s commitment to excellence, allows us to deepen our existing customer relationships and supports DAE’s vision of expanding Joramco’s capabilities and service offerings”.
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Further to green delivery from Boeing back in December 2018, followed by exterior paint work, the first ever cabin completion for the first BBJ Max 8 has arrived at Comlux Completion. Comlux is planning to deliver the aircraft to its US-based owner before the end of the year.
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The cabin interior of the first BBJ Max 8 is designed by New York based architect, Peter Marino, FAIA, the principle and founder of Peter Marino Architect, a 160 person firm. Widely credited with redefining modern luxury through equal emphasis on architecture and interior design, Marino’s work includes award-winning residential, retail, cultural, and hospitality projects worldwide.
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BBOC Aviation has appointed Graham Lees as Director and Head of Revenue, BOC Aviation, (USA) Corporation based in the Company’s New York office. In his new role, Lees is a Director on the board of BOC Aviation, (USA) Corporation. He will head the Airline Leasing & Sales activities for North and Central America and is responsible for managing senior relationships with the airframe and engine manufacturers on all revenue related areas.
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Furthermore Andrew Taylor has been named Head of Aircraft Sales, based in the Singapore headquarters. Prior to this, he was Executive Vice President, Aircraft Sales, in the company's US business. Taylor has more than 25 years of airline sales, marketing and leasing experience since starting his career with British Aerospace.
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Etihad Airways Engineering has signed a Memorandum of Understanding (MoU) with aviation spares and solution provider Satair. The signing took place at MRO Middle East 2019.
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The MoU covers supply chain solutions that will ensure worldwide parts availability for selected aircraft parts. While this signing marks the first step towards an official agreement between Satair and Etihad Airways Engineering, the business relationship between the two dates back more than 25 years.
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Final assembly of the first A350-900 for Japan Airlines (JAL) has begun and is taking shape at the Final Assembly Line (FAL) in Toulouse, France. The wing-fuselage junction and the installation of the vertical and horizontal tailplane have been completed.
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After this station the first JAL A350 XWB will be in the next assembly station for final structural completion - such as the installation of winglets - and ground testing of mechanical, electrical
and avionics systems.
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JAL placed an order for 31 A350 XWBs (18 A350-900s and 13 A350-1000s) in 2013. It was JAL’s first ever order for Airbus aircraft.
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The carrier’s first A350-900 is scheduled for delivery in the middle of the year. JAL’s A350 fleet will enter service on major domestic routes starting with its Haneda - Fukuoka route from September and later fly on international routes, replacing older-generation widebody types.
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As of February 14, Magnetic MRO has started its bond trading on the Nasdaq Baltic First North bond market.
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Magnetic MRO carried through a private placement of unsecured bonds and raised €8 million (US$9.1million) to support the company’s growth plans, including financing a strategic acquisition. The nominal value of one bond is 100 euros (US$114), coupon rate is 8% per annum and paid out quarterly. The bonds will mature in three years. The bonds were subscribed by 70 investors from Estonia, Latvia and Lithuania.
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Dowty Propellers has expanded its worldwide support network through a partnership agreement with AirStart for rotable parts services on R408 propeller systems that equip Bombardier Q400
regional airliners.
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This three-year exclusive agreement brings together the expertise of Dowty Propellers as the R408 propeller system OEM (original equipment manufacturer) and the resources of AirStart – including
the company’s established inventory of Q400 airliner parts, with exchange, lease and purchase options.
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AirStart’s support covers major elements of the R408 propeller system: blades, spinner, hub, pitch control unit, overspeed governor and brush blocks. Based in Canada, the company’s global customer base includes operators in key emerging airline markets, with the Dowty Propellers agreement expected to generate a multi-million-dollar business volume.
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UPCOMING EVENTS
February 19 - 20, 2019 – Palma de Majorca, Spain
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February 20th, 2019 – 2:00pm – 3:00pm GMT – Online
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March 8, 2019 – Arizona, USA
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