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Wednesday 18th April 2018
Dublin Aviation Summit
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Southwest Airlines confirms accident
Southwest Airlines has confirmed an accident involving Flight 1380, which made an emergency diversion to Philadelphia International Airport (PHL) after issues were discovered with the number one engine resulting in damage to the fuselage.

The 737-700 (N772SW) and was enroute from New York LaGuardia (LGA) to Dallas Love Field (DAL) with 144 passengers and five Southwest crew members onboard.

According to media reports, the engine blew at 30,000 feet and shrapnel from the engine pierced a window causing the aircraft to depressurise. One passenger was killed and several others were injured.

Our deepest sympathies go out to the family of the deceased and everyone concerned in this latest aviation incident.

Southwest Airlines issued a statement yesterday confirming the fatality and extending its sympathy to the family and all of those affected by the incident. The airline says that it has activated its emergency response team and is “deploying every resource to support those affected by this tragedy”. CEO Gary Kelly recorded his sympathies in a video message to customers: https://youtu.be/fz2rC1deJd0

Southwest Airlines states that it is in direct contact with the National Transportation Safety Board (NTSB) and the Federal Aviation Administration (FAA) to support an immediate, coordinated response to the accident. Southwest states that it is in the process of gathering additional information regarding flight 1380 and will fully cooperate in an investigative process.

The engine manufacturer, CFM, is also reported to be on the scene to support the investigation. Emerging reports show that a fan blade was missing and that there are signs of “metal fatigue” according to a comment from a NTSB investigator. Questions are now being asked as to why the nacelle failed to contain the shrapnel when the engine blew.

Philip Tozer-Pennington
philipt@aviationnews-online.com

Orix Aviation
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AV Corp International
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Available assets from
Aircraft
Model MSN YoM TFHs/TFCs Engines CC OL/A/S AD
A320-232 3577 2008 OR V2527-A5 180Y A 1810
A319-112 1618 2002 OR CFM56-5B6/P 144Y A 1810
Engines and APUs
Model ESN L/E/S AD
CF6-80C2A8 695558 S IMM
APS2000 SP-E922196 L IMM

Additional Sale & Lease Listings

Aircraft Type Engine MSN DOM Available From For sale / Lease Contact Company
A319-112 CFM56-5B6/P 1963 2003 Jul-18 Dry Lease Bobby Nishi WNG Capital
B737-400F CFM56-3C1 25052 1991 Oct-18 Dry Lease Mike Garland Kahala Aviation
Engine Type ESN Configuration Available From For sale / Lease Contact Company
CFM5605B5/P 577709 QEC available Sep-18 Lease Mike Garland Kahala Aviation
CFM5605B5/P 577715 QEC available Sep-18 Lease Mike Garland Kahala Aviation
CFM56-7B26 87521 QEC available May-18 Lease Mike Garland Kahala Aviation
CFM56-7B26 875325 QEC available Jul-18 Sale Mike Garland Kahala Aviation
Engine Type ESN Available For Condition Owner/Rep Contact
Trent 884 51138 SALE Serviceable Aviation Concepts, Inc. dwood@aviationconcepts.com
Trent 884 51394 SALE Serviceable Aviation Concepts, Inc. dwood@aviationconcepts.com
GTCP331-500B P-1109 SALE/LEASE Serviceable Aviation Concepts, Inc. dwood@aviationconcepts.com

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Leasing News
SMBC Aviation Capital concludes eight aircraft portfolio sale to Genesis Aircraft Services
SMBC Aviation Capital and Genesis Aircraft Services, have concluded the sale of an eight narrow body aircraft portfolio to Genesis.

The portfolio is made up of four aircraft from SMBC Aviation Capital’s owned fleet, and four from its managed fleet, comprising of narrow body Airbus and Boeing aircraft on lease to six airlines.

“We are very pleased to have concluded this deal with Genesis, a long standing customer,” says Michael Weiss, Head of Aircraft Trading, SMBC Aviation Capital. “This transaction demonstrates our ability to manage deals of scale across our managed and owned fleet.”

Cian Mackey, Chief Operating & Financial Officer at Genesis, also expressed his delight with the transaction, adding that the addition of the aircraft to its portfolio was “in line with our stated objective which is to expand our aviation platform to create a best-in-class leasing company”.

Finance News
Fitch upgrades BA’s 2013-1 EETCs
Fitch Ratings has upgraded the ratings on British Airways pass-through certificates series 2013-1. The Class A certificates have been upgraded to ‘A+’ from ‘A’, while the Class B certificates were raised to ‘A-‘from ‘BBB+’.

The upgrades of the class A and the class B certificates were driven by an increase in overcollateralization as the transaction amortized by $52.7 million since the previous review in April 2017, says Fitch. The amortization of the certificates outpaced the depreciation of the supporting collateral which resulted in lower LTVs and improved recovery prospects for both tranches.

Key ratings considerations include the quality of the aircraft collateral, significant overcollateralization, stabilization of the Boeing 777-300ER aircraft values, the United Kingdom’s insolvency regime coupled with the transaction’s underlying structure, the liquidity facility, BA’s credit quality, and various additional structural elements.

Positive credit factors include the low balloon payments for the A and B tranches, short remaining expected maturity for the B tranche, and rapid amortization of the certificates resulting in expected LTV improvements for both tranches over the rating horizon.

Maintenance News
EFTEC Aviation Group opens a new warehouse in London
EFTEC Aviation Group has opened a new warehouse in London, UK, near Gatwick airport. The new facility will be an important addition to the existing chain of warehouses: USA (New York and Ontario), Russia (Moscow), and Latvia (Riga). The brand new location is not only a more convenient option for company’s clients but also an important measure to even further improve the delivery times and efficiency of the company’s logistics.

Currently the most requested stock is being moved to the new warehouse and it is planned to fill the stock with a wider range of components in the nearest future.

EFTEC Aviation Group is a global supplier to the aviation industry, with offices in the United Kingdom, USA and Russia. Established in 2012, the group provides a wide range of services including, but not limited to, spare parts supplies, aircraft teardown, components repair, MRO and maintenance facilities, engine and APU repairs, logistics and customs clearance services.

EFTEC aviation group operates under ASA-100 certification and works as a reliable direct supplier of spare parts. EFTEC Aviation Group successfully fulfilled 16 CRJ and one 777-200ER teardown projects.

Technology News
IATA: Global Standards, More Data Use, Key to Safely Managing Future Demand
The International Air Transport Association (IATA) urged aviation stakeholders to follow global standards and make greater use of operational data in order to safely accommodate an additional 3.8 billion air travelers by 2036.

Speaking at the Safety and Flight Operations Conference, IATA’s Director General and CEO Alexandre de Juniac said, “Over the next 20 years, we expect to see a near doubling of passengers from the approximately 4 billion who traveled in 2017. Managing this growth, while making aviation even safer than it already is, will be a massive undertaking.”

De Juniac noted that 2017 was a very strong year for safety. There were no fatal accidents involving jet passenger aircraft and the fatal accident rate was 0.14 per million flights–the equivalent of one fatal accident for every 6.7 million flights–according, to IATA’s just released 2017 Safety Report.

“If we look at it another way–using fatality risk–on average, a person would have to travel by air every day for 6,033 years before experiencing an accident in which at least one passenger was killed. Yet we still have accidents, so we know there is room for improvement. Each fatality is a tragedy. And that rededicates everyone in the aviation industry to our common goal of having every flight take-off and land safely,” said de Juniac.

Global standards and best practices are vital to sustaining safety improvements. This is demonstrated by the performance of airlines on the IATA Operational Safety Audit (IOSA) registry. “Now in its fifteenth year, IOSA is the recognized global standard for operational safety. Over the last five years, the accident rate for airlines on the IOSA registry has been nearly three times better than for non-IOSA airlines,” said de Juniac.

To ensure that IOSA delivers even greater value in the future, it is undergoing a digital transformation. Introducing automated advanced business analytics to the IOSA process will enable better management of resources, the ability to measure the effectiveness of standards, and an enhanced level of quality assurance. Digital transformation also will enable more seamless interaction on industry safety initiatives, standards and operational practices, as well as benchmarking.

“As the number of accidents declines, future safety advances primarily will lie in achieving a better understanding of what happens in the more than 100,000 flights operating safely every day, through analysis of flight information and other data resources. IATA’s Global Aviation Data Management initiative is a crucial part of this effort. The GADM program now includes information from over 470 different organizations. Over 90% of IATA members are contributing to at least one of the GADM databases,” said de Juniac.

In a related initiative, IATA and the Civil Aviation Authority of Singapore (CAAS) recently signed a Memorandum of Collaboration to establish a Safety Predictive Analytics Research Center in Singapore (SPARC). SPARC will leverage operational safety information from GADM to assess potential hazards and identify safety risks. End users across the aviation community can then work collaboratively at the system level to address and implement appropriate safety measures to mitigate the risks, or even to prevent the occurrences of safety hazards.

De Juniac also said that IATA is developing a global database of turbulence reports to provide airlines with an enhanced situational awareness tool. “When our innovative turbulence data repository is operational early next year we expect to see a significant decrease in turbulence-related injuries.”

MTU Maintenance
Pratt and Whitney
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Airline News
UAE and US far from deal on airline subsidies
A spokesperson for Emirates told the Khaleej Times that inter-government talks between the UAE and the US are underway to resolve airline subsidy issue but a deal is still some way off from a conclusion.

UAE airlines still staunchly deny claims by US carriers that they receive government subsidies. Emirates and Etihad did agree to open up their accounts as part of any new deal in regards to open skies between the two countries but there has been no further report or announcement on how the talks are progressing.

Kuwaiti airline launches new flights to Saudi holy city
Kuwait-based Jazeera Airways has launched new direct flights, three times a week, to the holy Saudi city of Madinah.

“We are pleased to be opening a route to Madinah to improve services for pilgrims. They are an important segment for us, from Kuwait and for travellers from other countries such as India,” said Rohit Ramachandran, CEO, Jazeera Airways.

Maintenance News
Spairliners awarded by Royal Jordanian Airlines for an exclusive E-Jet component pool contract
Jordan’s flag carrier, Royal Jordanian, has signed a component services contract with Spairliners, the leading Integrated Component Care provider for Embraer E-Jet and Airbus A380 aircraft. Effective from March 2018 the contract covers the component supply and repair management of Royal Jordanian Airlines’ E-Jet fleet consisting of three E175 and two E195 aircraft.

Spairliners will supply Royal Jordanian Airlines’ fleet from its component pool and logistic hub in Paris, France, as well as its central spare parts warehouse in Munich, Germany. The contracted services include streamlined supply chain management, pool access, repair management and tailored logistics services for Line Replaceable Units of Royal Jordanian Airlines’ E175 and E195 fleet.

“We are delighted to be awarded by Royal Jordanian Airlines. It is an honour for us to support this leading network carrier in the region with our Integrated Component Care services”, says Cornelius Dalm, Head of Sales, Account Management and Marketing at Spairliners. He continues, “This contract is a great step for Spairliners to strengthen its presence in the Middle East. It enables us to further expand our footprint in this region and attract more operators with our cost-efficient services, customized product offerings and extensive in-house repair capabilities.”

Royal Jordanian Airlines’ CEO Stefan Pichler states: “As an airline carrier focusing on process optimization, cost improvement and profitable growth, we are pleased to have selected Spairliners as our partner. Spairliners is ready to offer us their customized product services, attractive cost scheme and their long-term experience in supporting E-Jet aircraft. We are delighted to continue and extend the successful and excellent relationship which we have with Spairliners’ shareholders Air France KLM Engineering and Maintenance and Lufthansa Technik AG since many years.”

Charles Taylor Aviation Asset Management
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Airline News
Spirit Airlines considers smaller aircraft
Spirit Airlines chief commercial officer, Matt Klein, has told reporters that the airline will seek proposals for smaller aircraft from Bombardier and Embraer shortly to provide future lift from midsize and smaller cities to tourist destinations. The airline already has plans to expand its fleet of Airbus A320-family planes to 161 by the end of 2021.

LATAM Airlines reaches initial deal with union but strike continues
Chile-based LATAM Airlines and a union of flight attendants for subsidiary LAN Express reached an initial labour agreement this week although the union cautioned that a week-long strike would continue until it had voted on the deal. The airline will continue to reschedule flights in the short-term.

The main sticking issues during months of negotiations have been the duration of rotations and salaries of new employees.

Flair Airlines to increase flights
Flair Airlines, the low-cost carrier based in Kelowna, British Columbia, Canada, will increase its services by 118 flights per week this summer. From June 15, the airline will begin offering service in five new cities in Canada.

Flair currently operates seven 737-400s and plans to add two 737-800s before summer and four additional aircraft next year.

Sun County to cover some costs of stranded passengers
Sun Country Airlines has confirmed that the airline will refund original round-trip tickets, plus any additional reasonable transportation costs to get passengers home. Hundreds of passengers were stranded in Mexico after the airline cancelled flights due to a weekend snowstorm battering the Midwest. An estimated 250 people were stuck when the airline wasn’t able to provide more flights since its seasonal service ended on Saturday.

People News
Embraer announces new Executive Vice-President Finance and Investor Relations
José Antonio de Almeida Filippo has resigned from Embraer as Executive Vice-President Finance and Investor Relations, effective April 17, 2018, to pursue new professional projects.

The board of Embraer has elected Nelson Krahenbuhl Salgado, as an interim measure, to the position of Executive Vice-President Finance and Investor Relations, replacing Filippo. Nelson will also accumulate his current institutional relations duties.

Nelson Salgado holds bachelor´s, master´s and doctorate degree in Engineering and an MBA in Business Management from Fundação Getúlio Vargas. He has been with Embraer for 30 years, having started his career in the engineering department. He has occupied several executive positions for corporate functions, many of them in the financial area.

José Antonio Filippo, as an Executive Officer without specific designation, will assist management transition of the financial and investor relations area from April 17 to May 11, 2018.

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Airline News
Temasek makes a bid for HNA airlines
It is being reported that Temasek – the majority shareholder of Singapore Airlines – has expressed interest in acquiring a minor stake of HNA’s Hong Kong-based carriers, Hong Kong Airlines and Hong Kong Express Airways.
Temasek and HNA have signed a memorandum of understanding to explore business partnerships in aviation and logistics.

Buying into the airlines would help Temasek gain an aviation foothold closer to mainland China.

Temasek, HNA and Singapore Airlines have not commented on the reports.

Japan’s StarFlyer to fly to Taiwan
Japanese airline, StarFlyer, will begin flights to Taiwan in October will regular direct flights between Taoyuan and three Japanese cities–Fukuoka, Kitakyushu, and Nagoya–with one flight each day.

Currently, only Taiwan’s Tiger Air operates direct flights between Taoyuan and Fukuoka.

Nepali airline formally receives two more Chinese-made planes
Nepal Airlines Corporation (NAC) has received two new aircraft from a Chinese manufacturer – two 17-seater Y-12e aircraft – which completes the delivery of all six Chinese-made planes as part of a deal between Nepal and China.

The minister said that the received aircraft will be in operation within 100 days.

NAC had signed a commercial agreement with AVIC International Aero-Development to procure six aircraft – two 56-seater MA60 and four 17-seater Y-12e in November 2012.

Maintenance News
India GST cuts rumoured
Reports that the Indian civil aviation ministry is considering a steep reduction on the Goods and Services Tax (GST) levied on aviation maintenance, repair and overhaul (MRO) industry have been welcomed by the industry and airline shareholders. Shares of SpiceJet, Jet Airways and IndiGo rose on the news.

Local media reports indicate that the ministry is seeking a reduction from the existing 18% GST level to just 5%.

Bombardier Tianjin Service Centre completes its first 120-month inspection on a Challenger Jet
Bombardier Business Aircraft has celebrated the first anniversary of the Tianjin Service Centre, inaugurated in collaboration with its partner, the Tianjin Airport Economic Area (TAEA), in April last year.

“Being close to customers and highly responsive is at the centre of our strategy,” said Jean-Christophe Gallagher, Vice President and General Manager, Customer Experience, Bombardier Business Aircraft. “This service centre is an essential part of our strategy to support our growing market share in China and we have the facilities, dedication and infrastructure to meet our customers’ needs, today and into the future.”

Recently, the Tianjin service centre successfully completed heavy maintenance inspections including a 60-month inspection on a Global aircraft as well as a 120-month inspection on a Challenger aircraft.

The service centre is equipped to perform scheduled and unscheduled maintenance, including avionics installations and aircraft on ground (AOG) support for Bombardier Challenger and Global aircraft. It has EASA-certified employees, and is equipped to support Bombardier Business Aircraft customers across the region for their warranty, repair and line service needs.