The Kaplanian Report – June 2019

ON THE BOEING FRONT

  Boeing Remains Committed to $50 Billion in Annual Aircraft Services

Boeing remains committed to achieving $50 billion in annual aircraft services revenue by around 2027.  It is part of a broader aim by the company to control more of the commercial aviation ecosystem.

“We did set a big, audacious target,” Boeing chief executive Dennis Muilenburg, says during an investor conference hosted by AllianceBernstein on May 29.  “That target has not changed.” “Admittedly it’s a high-bar target.  We think it’s achievable target,” he adds.

Muilenburg set the $50 billion benchmark in late 2016 when the company merged all its aircraft services work into a new dedicated services unit called Boeing Global Services.  The division generated $17 billion in revenue in 2018, up 17% in one year—gains partly reflecting acquisitions like that of parts supplier KLX Inc.

The $50 billion mark remains a stretch, but Muilenburg thinks Boeing can sell more products and services related to aircraft maintenance, modifications, parts, training and software—“things that apply to the brains of our airplanes”.  He calls Boeing’s services expansion an effort to boost”lifecycle value”—meaning the revenue Boeing can earn over the course of an aircraft’s life.

“Investments to grow the services business will continue to be our primary fuel for growth,” he says.  “We do see some opportunity for targeted acquisitions.  But I see those as bolt-on complementary acquisitions rather than large scale acquisitions.

Source : Boeing

                      

ON THE AIRBUS FRONT

               Airbus Establishes Airbus Canada to Market the A220                           


The change of name of the C Series Aircraft limited Partnership(CSALP) announced in March 2019 to Airbus Canada limited took effect on June 1, 2019.

The new name reflects the majority interest of Airbus in partnership since July 1, 2018.  The partnership is adopting the Airbus logo as its single visual identity.

Over the course of the coming weeks, the new name will be applied to the limited partnership’s documentation, materials and branded items.  The Airbus and Bombardier logos will continue to be displayed side-by-side on the building exteriors in Mirabel, reflecting production activities on the site for both the Airbus A220 and Bombardier CRJ aircraft families.

Headquartered in Mirabel, the limited partnership carries responsibility for the development and manufacture of the Airbus A220 family.  Majority owned by Airbus, the entirety includes Bombardier and government controlled agency Investment Quebec and employs some 2,200 people.

Plans call for a second manufacturing facility, located in Mobile, Alabama, to start production in the third quarter of this year.

Source : Airbus           

        

REGIONAL/BUSINESS JETS

               Daher Has Secured European Certification for the TBM 940                                  

Daher has secured European certification of the TBM 940, nine weeks after launching the latest variant of its 29-year-old single-engined turboprop.  An update to European Union Aviation Agency type certification data shows the approval was achieved on May 10.

Priced at $ 4.13 million, the TBM 940 replaces the flagship 930 introduced in 2016 and incorporates a host of new features including an auto throttle, increased automation for the de-icing system and redesigned and updated interior.

French airframes Daher says the TBM 940’s auto throttle is the first to be installed on a single-engined turboprop weighing less than 12,500lb (5,675kg) and is designed to adjust the aircraft’s speeds based on the present flight profile.

The auto throttle also allows the six-seat aircraft to be operated at the edge of approved power regimes for its Pratt & Whitney Canada PT6A-66D.

The TBM 940 sits above the TBM910 as the baseline model since its launch in 1990.  12 variants of the high-speed aircraft have been produced and around 950 examples delivered globally.

Source : Flightglobal/Picture Daher 

            Genghis Khan Airlines to Launch ARJ 21 Service in July

Chinese start-up Genghis Khan Airlines took delivery of its second Comac ARJ21-700 on June 4th, ahead of its planned launch date in early July.  Based in Inner Mongolia, the newly established carrier becomes the second operator of the type, after Chengdu Airlines, and the first to commit to operating solely of the Chinese-made regional jet.

On June 4th, Genghis Khan commenced verification test flights with its first ARJ21, flying between its base at Hohhot Baita International Airport, located in inner Mongolia’s far north. The carrier carried out two emergency evacuation simulations earlier in the day including a lithium battery fire and an engine failure during take off.  The carrier plans to compete a total of 25 verification test flights as part of its certification process over the next coming weeks.

Genghis Khan took delivery of its first ARJ21-700 on February 22.  A rebrand from the formerly known Tianjiao Airlines, the Chinese carrier shelved initial plans to operate fleet of Bombardier CRJ900s after inking an agreement covering 50 ARJ21s (25 firm orders and 25 options) in August 2018.

Genghis Khan expects to take delivery of two more ARJ21s this year, plans call for a fleet of 25 jets, powered by General Electric CF34-10A engines, to operate to 40 destinations within five years.

Despite mounting political pressure to raise the country’s profile as global aerospace contender, China’s first indigenous airliner as failed to gain traction in its home market.  To date, launch customer Chengdu Airlines remains the sole operator of the Comac regional jet, operating a fleet of 11 ARJ21s to 20 Chinese cities.

Source : AIM/Photo Comac                                                                                                                                                           

OTHER AVIATION NEWS

              Lebanon’s MEA Rises Above Structural Disadvantages 

Lebanon’s Middle East Airlines (MEA) expects to acquire up to 14 replacement aircraft and increase its fleet size to 20 aircraft by 2021.  It is working to overcome serious competitive disadvantages posed by its hub’s open skies policy, explained the airline’s head of commercial strategy and alliances, Walid Abillama.

“Our open skies policy is actually very unfair for us,” he told AIN during an interview at MEA’s headquarters at Beirut’s Rafic Hariri International Airport.

“Other carriers are free to add capacity.  If we ask to increase frequencies, they complain that they are not able to get slots.  When an airline comes to your base, you cannot take advantage of their network.  The Gulf carriers are the biggest in the world.  We are a minority at Beirut.  We have only 35 percent market share.”

Referring to traffic, originating from the UAE into Beirut, Abillama said Emirates operates three 777s a day, FlyDubai two flights a day and Etihad another two for total of seven.  ”We operate three flights a day to Dubai and one to Abu Dhabi,” he noted. “That’s seven for them and four for us.  Turkish Airlines operates four flights, Pegasus two and Atlas Jet one.  We have two flights away to Turkey.  Saudi Arabia is a similar situation.”

MEA operates 13 Airbus A320s and five A330s. It plans to replace up to nine A320s with A321, and four A330s with A330neos, which carry more seats.

The net effect could be a total fleet of 20 aircraft by 2021,” said Abillama.

Although MEA does not offer flight to North America, Abillama noted a thriving business in Lebanese passengers traveling to and from the U.S., MEA maintains

What Abillama called “special pro-rate agreements” with U.S. carriers United, American and Delta.  ”We give them tickets on MEA flights, and they sell our seats,” he said “We compete in North America without flying there.

Source : AIN/Picture MEA

                 Trent 1000 Fix Ranks as Top Priority for Rolls-Royce

Addressing premature blade deterioration of Trent 1000s ranks as Rolls-Royce’s “ single most important issue,” acknowledges the aero engine company. They profess “deep regret” for the distraction to customer operations and the resulting groundings that cost the UK manufacturer some about $540 million last year.

Dominic Horwood, the company’s civil-aerospace chief customer officer, called the “significant” disruption to customers “absolutely unacceptable to them and to us”.  He stressed the importance of providing support by returning engines to operators.

Rolls-Royce added it has become “more responsive in turning engines around” and hopes to see single-digit numbers of aircraft on the ground(AOG) by the end of 2019.

Horwood said the company “respects” Air New Zealand’s decision to choose General Electric GEnx power plants for a new batch of Boeing 787-10s over the incumbent Trent 100s that power its 787-9 fleet. “They are still an important customer to us,” he remarked.  “The way we support customers is how we will be remembered.”

The official went to pains to emphasize that the blade-deterioration resulted from design issue specific to the Trent 1000 at the “component level”and does not apply to other Tent-Family variants.

Horwood said the manufacturer, which claims good progress in introducing technical fixes, never stops learning.  The lessons reside very much in detail design of components and an understanding of what can cause deterioration in service.  ”Once we have done that, then it is easy to apply on new engines’’, he explained.  ”This is not about mistakes, but apply lessons we are applying that learning in the UltraFan future-technology program.”

Source : Rolls-Royce/Air New Zealand Picture

                              Air Premia is Coming to Los Angeles

Air Premia is planning to use its new Boeing 787-9 Dreamliner on the Seoul Tokyo-Los Angeles route starting in 2021 according to Forbes.  This will be the first long-haul route for the new carrier.

Funding for Air Premia went to venture capitalists and financial institutions, with no shareholder so far having more than 20%, according to a spokesperson.

Whereas start-up airlines often often have only a few investors, Air Premia in January stated it has seven public investors. Series B funding raised $147 million, and Air Premia aims at profitability within three years.

One shareholder is Hong Sung Bum, the founder of Hugel, a pharmaceutical company that manufactures Botox.  An Air Premia spokesperson said Hong wanted to diversify into new businesses.

Air Premia does not intend to operate to operate narrowbody aircraft, and nor will fly domestically-a first for a Korean airline.

Initially Air Premia will fly regionally within Asia.  Its first three 787-9s are leased from Air Lease and arrive in July, September and November 2020.

Source : World Airline News/Forbes/Air Picture Boeing

   

LATEST NEWS

  • Vistara indian carrier will lease two Airbus A320neos and four Boeing 737-800NGs from Singapore-based lessor BOC Aviation.
  • Korean Air received delivery of its 25th Boeing 777-300ER on May 14, the 200th Boeing aircraft from Boeing over 48 years.Korean Air first introduced the 777-300ER into service in 2009.
  • DHL Express has embarked on a major fleet strengthening plan.  The company placed an order for 14 Boeing 777 Freighters.  The delivery of the first of the planes is expected to be completed this year.
  • Airbus on the first day of the Paris Air Show, Airbus announced the launch of the A321XLR, with large orders from a large numbers of their customers (more details in my July blog.)
  • IAG CEO of one the world’s largest airline groups gave Boeing a significant and highly public boost at the Paris Air Show June 18, announcing a tentative deal for 200 MAX 737s.The deliberate significant of this LOI, for a mix of 737-8s and larger 737-10, cannot be overstated. Boeing just got a huge boost from IAG CEO Willie Walsh, a well-known and respected industry leader, businessman, and a 737 pilot.  “We’re partnering with the Boeing brand.  I have worked with Boeing for years and it’s a brand I trust,” he said.”We have every confidence in Boeing and expect that the aircraft will make successful return to service in the coming months, having received approval from regulators.”                      

AIR CARGO

               Qantas to Upgrade Atlas-leased Freighters to 747-8Fs

Atlas Air Worldwide Holdings, which has had a long-standing ACMi lease agreement with Qantas Freight for the operation of two 747-400 freighters, said in a statement that the leased aircraft will be updated to two 747-8Fs.

Both 747-400s operate in Atlas Air Livery rather than Qantas livery, having flown trans-Pacific routes connecting Australia, Asia and North America.  According to Atlas’ statement both -8Fs will operate the same routes beginning late next month.

According to Atlas, the 8Fs will begin operating for Qantas once existing agreement with another Atlas customer expires, while the -400Fs operating now for Qantas will go to the ACMI for another customer. 

Source : Air Cargo Facts/ Picture Atlas Air      

 

Maintenance, Repair and Overhaul News

           Boeing to Supply Airbus A320 Parts to British Airways

Boeing is to supply parts for aircraft made by rival Airbus to British Airways A320 fleet.  British Airways has 67 A320-200s and 10 A320-200neos in its fleet.

“We’re very excited about this,” BA’s chief financial officer Steve Gunning told reporters at the Paris Air Show.  ”To have all of BA’s A320 and A320neo family covered by this arrangement is a great way forward.”

He added: “We went through a very rigorous process.  We know Boeing will bring a wealth of experience and it enables us to really focus on our core operation.

Boeing Global Services chief executive Stan Deal said that the manufacturer was”happy to put our hat in the ring” to offer BA “more choice.”  In addition, the carrier has signed an agreement for three landing gear exchanges for its 777-300ERs.  Through the program, operators receive an overhauled and certified landing gear from an exchange pool maintained by Boeing.

The latter deal comes four months after IAG agreed to buy as many as 42 of the 777X wide body aircraft to replace BA’s aging fleet of 747s.  It has ordered 18 777-9s and took options for an additional 24.

Source: MRO-Network/British Airways/British Airways Photo    

 

 

Researched and Compiled by :

Ed Kaplanian    Commercial Aviation Advisor 

Contact – ekaplanian@msn.com

Editor:   Lee Kaplanian 

                 

 

 

 

June 2017 The Kaplanian Report

ON THE BOEING FRONT

 Boeing Elaborates on 777-9 Design Details 

Boeing has published further preliminary details of the 777-9’s configuration, three years ahead of entry into service. It shows a slightly lower aircraft with an interior re-sculpted to carve out a precious 10.2cm (4in) of internal diameter.

A 79-page document posted on Boeing’s website offers the first detailed update on the larger 777X variant’s dimensions since a brochure version appeared in 2015.

Boeing released both documents to help airport managers prepare for the arrival of the stretched wide body with its extended wingspan.

Compared with the previous iteration, the update shows the 777-9’s designers have made a few minor tweaks.  For example, the height of the vertical tail above the runway is about 17 cm (6.6 in) shorter,while it remains nearly 1m (3.3 ft) taller than the height of the 777-300ER.

The most critical dimensions for the 777-9 remain unchanged, with a 2.9m (9.5 ft) longer fuselage and 7m (22.9 ft) wider unfolded wingspan compared to the 777-300ER.

The folded wingspan of the 777-9 measures 64.82m (212.7 ft), about 2,54cm (0,083 in), wider than the 777-300 ER. Boeing also has

worked to make the 777-9 more comfortable with a standard 10-abreast layout in economy class.

The 777-9 shares an external fuselage cross-section with the 777-300ER, but the internal sidewalls have been carved out by about 10.2cm (4.0in).

Boeing now lists the 777-9’s standard two-class cabin as accommodating 414 passengers, with a three-class cabin holding 349 seats.

Source : Boeing/BoeingPicture

 

ON THE AIRBUS FRONT

                        A330 First Flight Likely to Slip to September

Airbus will now perform the first flight of its A330neo “at the end of the summer”’, a significant delay over its previous timeline for the re-engined aircraft.  Speaking at an event in Toulouse, Airbus executive vice-president for programs Didier Evrard confirmed the slippage.

The initial Rolls-Royce Trent 7000 engine has successfully completed tests, he says: “We will install it during the summer and fly at the end of the summer.”

The maiden flight, he says, would likely take place around September rather than August, due to the lengthy summer break in France.

In the meantime, lessor SMBC Aviation Capital has ruled out interest in the Airbus A330neo. Instead they are focusing its energies on securing more sale-and-leaseback deals for the A350.

Although leaving the door open for the re-engined wide body, SMBC chief executive Peter Barrett says at the moment “it is not something we have considered”.

Source : Airbus/Flightglobal

REGIONAL/BUSINESS JETS

Fourth MRJ Arrives in US; Mitsubishi                                Evaluating Flight Test Program

A fourth Mitsubishi Aircraft Corp. MRJ90 flight test aircraft has arrived at Moses Lake, Washington.  The aircraft, which departed Nagoya, Japan, March 13, arrived April 1 at Grant County International Airport in Moses Lake. It made stops in Guam, the Marshall Islands, Honolulu and San Jose, California.

The total flight distance flown from Japan was approximately 14,000 km (8,700 miles) and total time was 19 hr and 48 min.

The latest aircraft to arrive in Moses Lake was the last that had been designated to participate in US-based MRJ flight testing.  A fifth MRJ90 flight test aircraft is remaining in Japan, though the majority of flight testing is slated to occur in the US.

Source : ATW/Mitsubishi Aircraft

 

   Dutch to Replace Royal Transport with 737 BBJ

The Dutch transport minister has announced the purchase of a Boeing 737 business jet to replace the current Fokker 70 that is currently used to transport members of the nation’s Royal family and government officials.

Boeing will supply the airframe, while Fokker Technologies will provide the VIP interior.  The aircraft will have a capacity of 24 passengers: the same as the Fokker 70 in current use.  It will carry the registration PH-GOV.

The preliminary agreement has been signed and final contract was finalized in April. The purchase price is estimated at $98.7 million and anticipated delivery is in 2019.

One of the requirements for the new aircraft is that it should be able to reach parts of the Kingdom of the Netherlands non-stop, including the Dutch Antilles in the Caribbean.

Four responses were received following the release of a public tender last year, but none met all criteria leading the Netherlands to enter negotiations with Boeing over a BBJ acquisition.

One of the pilots for the new VIP transport will be King Willem-Alexander, who also has flown the Fokker 70. He will commence type rating training on the 737 this year.

Source : Flightglobal

 

OTHER AVIATION NEWS

Gulf Air on Track for the First 787-9 Delivery

Gulf Air, Bahrain’s national carrier, is gearing up for the arrival of the airline’s first Boeing 787-9 Dreamliner.  It will be delivered in April 2018 and will operate the airline’s long haul routes, gradually replacing its Airbus A330s.

A total of 5 Boeing 787-9 Dreamliners will have entered Gulf Air’s fleet by the end of 2018, with an additional 2 aircraft arriving in 2019 and 3 arriving in 2020.

Gulf Air’s Boeing 787-9 Dreamliners will offer 282 seats in a two-class configuration, with 26 Falcon Gild Class seats and 256 Economy Class seats.

“The 787 customer base is growing, not just globally, but in the Middle East as well with airlines such as Gulf Air taking delivery of the Dreamliner,” said Marty Bentrott,Vice President- Sales, the Middle East, Turkey, Russia and Central Asia.

Boeing Commercial Airplanes, ”We are confident that the 787-9 will help Gulf Air achieve a new level of efficiency and profitability, plus will contribute to their future growth and success.”

Source : Bizbahrain

WestJet to Purchase Boeing 787-9 Dreamliners

On May 2, WestJet announced a definitive purchase agreement with The Boeing Company for up to 20 Boeing 787-9 Dreamliner aircraft. This agreement includes commitments for 10 Boeing 787-9 aircraft to be delivered between the first quarter of 2019 and December 2021; with options for an additional 10 aircraft to be delivered between 2020 and 2024.  The airline also announced it has selected General Electric’s GEnx-1B engine for the 787.

“We welcome WestJet to the Dreamliner family and look forward to the new destinations they will serve,” said Ray Conner, Vice Chairman of The Boeing Company. “WestJet, for its entire 21-year history, has been a loyal all-Boeing jet customer and we’re excited to see them expand their fleet with the 787.”

As part of the purchase agreement, WestJet is converting 15 firm orders for the Boeing 737 MAX that were to be delivered between 2019 and 2021 to options available between 2022 and 2024.

Source : WestJet

Oman Air Plans Major Aircraft Order                                         Even as Break-Even is Delayed

Oman Air Transport plans to move ahead with a multi-billion order for wide body jets early next year, even though it won’t now break even in 2017. The low oil prices curbs growth in the Persian Gulf.

The Carrier is now aiming to end losses by the end of next year, contingent on demand not deteriorating further, Chief Executive Officer Paul Gregorowitsch said in an interview on May 2.  While the Mideast carrier will also delay plans to expand to a 70 aircraft and 75 destinations to 2023, from 2020, it still plans to order 15 new wide body jets needed to replace older planes and add capacity, he said.

Further discussions will be held with manufacturers and leasing firms as Oman Air seeks to agree to terms to take either the Airbus A350 or the Boeing 787-9.

The 787 model has a slight advantage because the carrier already operates six Dreamliners, with the tally set to increase to 10 in 2018.

Oman Air will also go ahead with deliveries of the 20 Boeing 737 Max planes it has on order  as it leases out some of its current marrow body fleet to better Match seats to demand.

While the carrier is continuing to operate 10 Airbus A330s, which form the core of its wide body operations, those planes will be retired to make way for the new aircraft. Gregorowitsch said.  The upgraded A330neo isn’t of interest.

Source : Bloomberg

 

LATEST NEWS

  • Hawaiian Airlines has launched a companywide rebranding under which it will update its logos and repaint its fleet over the next several years.
  • Rossiya, the Russian carrier has unveiled a Boeing 777-300 with a specialized paint scheme, intended to draw attention to conservation of rare wildlife, including big cats.

  • Delta Air Lines added 10 Boeing 737-900ERs to its order book during the first quarter, bringing its total orders for the type to 130 aircraft.
  • Embraer delivered its 1,100th business jet on May 4. The milestone aircraft is the industry’s best selling Phenom 300, the customer is Net Jets.

  • Boeing has selected Ipeco to design and manufacture a High Comport Attendant Seat for the next generation 777X airplane.  This follows on from a contract awarded last year for the pilot and observer seating for the same aircraft.
  • UPS Airlines is adding its first used Boeing 767-300 freighters to its fleet, with expected entry into service in 2018.
  • SMBC Aviation Capital has placed a direct order from Boeing for three 737-800s, bringing its total owned, managed and committed portfolio for 737-800s to 198.
  • Avolon delivered one Airbus A320-200 aircraft to Batik Air.  This is the sixth Avolon aircraft on lease to Batik Air.
  • Asiana Airlines has taken delivery of its first Airbus A350-900, which is on lease from Dublin based SMBC Aviation Capital.  The aircraft, part of a six A350 sale-and-leaseback deal is the first of the type to be operated by a Korean Airline.

  • Primera Air Scandinavian leisure carrier has placed an order for eight 737 MAX 9s, has taken purchase rights on four more.  They will lease another eight from US lessor Air Lease Corp.

 

AIR CARGO

        One of the Last Airworthy Boeing 747-200s                      Flies into Retirement

A Kalitta Air Boeing 747-200 delivers a soft puff of white smoke as the jet completes its second-to-last landing ever on Thursday April 20 at Seattle-Tacoma International Airport.  On Friday, April 21st, the jet and its crew shuttled the airplane back to Kalitta Air’s home base in Michigan, where the airplane was retired for good by the cargo carrier.

In a time when the iconic jetliner has been disappearing from fleets across the globe at an astounding rate, another 747 biting the dust may not seem particularly remarkable.  Yet this particular airplane stands out among the crowd: It’s one of the last airworthy 747-200s in commercial service. There are two others still in use as Air Force One.

“I tell ya, this is a nice airplane.It’s old school,” Captain Scott Jaykl says during a post-landing interview aboard the aircraft. “It’s a pilot’s airplane,” Jaykl says from the plane’s antiquated flight deck. ”You have manual control over everything.”

Built in 1987, Captain Jaykl’s jet was among the last “-200“ variants of the 747 to come off the assembly line.  The model was then replaced by the updated 747-400 in 1989, and the -200 variant, which debuted in 1971, ended production completely a few years later.

This specific aircraft was originally bought by United Airlines, converted to a freighter for Northwest Airlines in 2000, then transitioned to Kalitta and added to its fleet in 2010 according to public records.

Source : USA Today/Ed’s Research/Picture

 

 Cargolux And Emirates SkyCargo Ink                                                  a Memorandum of Understanding

Luxembourg all-freight operator, Cargolux and Dubai-based Emirates SkyCargo, have signed a memorandum of Understanding (MOU), paving the way for strategic cargo partnership

The partners said the agreement, which was signed at the Air Cargo Europe event in Munich, is the first of its kind in the air cargo industry between a mainline airline and a specialized freighter operator.

Under the cooperation, Emirates SkyCargo will use Cargolux’s nose-loading 747 freighters for heavy and outsized cargo, complementing its own fleet of 13 777Fs and two 747-400ERFs.  The two carriers will also further develop block space and interline agreements on each other’s network.

Emirates SkyCargo will launch flight operations to Luxembourg from this month, while Cargolux will step up its Dubai World Central frequencies to 3X-weekly. Both airlines’ cargo will be handled at the same facility in Luxembourg, Cargolux will be handled by Emirates SkyCargo at Dubai World Central.

Cargolux operates 14 747-8Fs and 12 747-400Fs, covering 90 destinations. ( five and a half years after the first GEnx powered 747-8F went into service.  Cargolux has become the first operator to fly 1 million operating hours with the new engine type so far, the carrier has experienced no engine-caused in-flight shutdown of a GEnx since its entry into service.) Ed

Source:  ATW

 

 Maintenance, Repair and Overhaul News

Lessors Welcome New Engine Entrants

With next generation engine types, the CFM LEAP and the Pratt & Whitney Geared Turbofan having a combined order backlog of nearly 20,000 units, engine lessors are anticipating greater numbers being brought into their portfolios over the next decade.

In a six person panel discussing the engine leasing market at Aviation Week Network’s Engine Leasing,Trading & Finance in London on May 10, lessors foresee opportunities around both the LEAP and the GTF.  While Pat Laffan, SVP structured finance at GE Capital Aviation Services (GECAS), says the company will focus on GE and CFM engine types in future; primarily in the sale and leaseback market.  They would also consider looking at other engine types should the returns be beneficial.

Julie Dickerson, managing director of Ireland-based Shannon Engine Support, a firm which doesn’t chase sale and leaseback deals, expects a greater focus on early year LEAP engines along with continuing with mature CFM56 types.

The widebody engine market also conjured up some interesting perspectives.  Having found success with sales and aftermarket coverage with the Rolls-Royce Trent XWB engine, Bobby Janagan, vice president and general manager at Rolls-Royce and Partners Finance, conceded associated costs with the engine type could be high. Nevertheless they were similar to those of another wide body engine type, the GE90.

Speaking from the perspective of an independent lessor on the XWB, Dan Coulcher, SVP & chief commercial officer at Willis Lease Finance Corporation, pondered if there would be a competitive aftermarket for the engine type powering the Airbus A350, which has been in service since 2015. He also says entry-into-service challenges around Pratt’s GTF are a concern for would be investors, due to questions over changes to bills of materials on the engine.

Source : MRO Network

                          MRO LATEST NEWS 

  • OEMServices has a 15-year Asiana Airlines contract to provide Airbus350-900 component support.
  • AFI KLM E&M extended component support deal with Malaysia Airlines for 54 Boeing 737NGs.
  • FL Technics signed a contract with Russia’s Nordavia to provide CAMO services for its Boeing 737CL aircraft.
  • Epcor was selected by Kenya Airways for APU support for Boeing 737NGs, 787s and Embraer E190s.
  • Airbus has a UPS contract to upgrade 52 Airbus A300-600Fs with new Honeywell avionics.
  • AerFIn agreed to acquire 15 Embraer E170s, plus spares inventory, from Saudia.

 

Researched and Compiled by : Ed Kaplanian

Commercial Aviation Advisor

Contact – ed@kaplanianreport.com

Volume 2 Issue 7 July 2015

ON THE BOEING FRONT

Boeing 757 ecoDemonstrator Embarks on Final Test Run 

Energy-harvesting windows, green diesel biofuel and a 3D-printed flight deck monument are three technologies that will be tested on the last series of flights of T U I  G r o u p – b r a n d e d 7 5 7 ecoDemonstrator; destined to be dismantled by the end of this month. Boeing has partnered with the  Aircraft  Fleet  Recycling  Association  to  disassemble the 757 at the conclusion of the tests.  In the pioneering spirit of the ecoDemonstrator program; however, the disassembly will serve as an opportunity to validate a variety of new options for recycling the various materials and systems.

yourfile

“We are going to recycle the heck out of the airplane”, says Jeanne Yu, Boeing’s environmental performance director, in a recent interview. “Boeing will look to recycle some components in the existing fleet or recycle pieces to be used in other ways on flying aircraft”, she says. Until then, the 757 ecoDemonstrator will continue a new series of flight tests after a first series concluded two months ago.

The 757 ecoDemonstrator follows a series of tests in 2012 on an American Airlines 737-800 and in 2014 a former 787 test aircraft. The first series of flights on the 757 focused on several drag-reducing technologies; such as an active flow control system mounted on a tail fin, bug “phobic” coatings on the leading edge of the right wing and a laminar flow-protecting Krueger flap on the left wing. Finally, the 757 ecoDemonstrator flight deck also features an aft aisle stand made using scrap carbon fiber material from the 787 production system.  A3D printer was used to transform the crap material into the aisle stand.

Source: Boeing/Flightglobal /Photo Boeing

 

ON THE AIRBUS FRONT 

Airbus A380 Shows Off Illuminated Decal Technology 

One of Airbus’s A380 test aircraft has demonstrated a new electro-luminescent display technology designed for external use on the aircraft.

yourfile

The technology developed by Safran division Aircelle, comprises thin markings which can be applied to the fuselage skin and engine nacelle to provide illuminated branding and logos using on-board electrical power.

Initial airborne tests using A380 MSN1 were carried out at night on June 8th, with the aircraft featuring an Airbus logo on its outboard left-hand Rolls-Royce tent 900 power plant.

Aircelle says the flight was able to demonstrate the “brightness, clarity and readability” of the marking in various lighting conditions.

Aircelle showed the development at the Paris Air Show last month, Aircelle says that the display can be placed “almost anywhere” on the aircraft, including the underside of the fuselage and the tail.

Source : Flightglobal/Picture Airbus

 

BUSINESS/REGIONAL NEWS

Gulfstream Boosts Connectivity for G450 and G550 

Gulfstream has received Us Federal Aviation Administration approval for a modification that allows operators of G450 and G550 aircraft to benefit from enhanced connectivity.

Gulfstream_G450_G550

Covering the installation of the Satcom Direct Router, (SDR) the enhancement simplifies cabin communications on the two twin jets.

“This equipment elevates the airborne office to a new level,” says Mike West, vice-president product support sales and new business development, Gulfstream.

“The addition of a smart router allows for more communications options in the cabin, including Satcom Direct’s GlobalVT, which allows passengers to use their personal smartphones to call and text in flight.”

The SDR also supports mobile applications for onboard cabin services, including moving map and flight tracker, command and control of satellite links and real-time connection status reporting.

Installation of the SDR and accompanying software is standard on new G550 and G450 aircraft and available as a retrofit for in-service examples.

Gulfstream is pursuing similar supplemental type certificates from the FAA to add the enhancement to G650/G650ER, GV and GIV aircraft.

Source: Flightglobal/Gulfstream

 

OTHER AVIATION NEWS

 

Lufthansa Technik Partners with GE for GE9X and GEnx-2B Overhaul

Lufthansa Technik is building a joint-venture overhaul shop with General Electric to service the engines powering Boeing 747-8s and the in development 777X.

The two partners signed a tentative agreement at the Paris Air Show last month, though the closing of the deal will depend on regulatory approval, says the German MRO group. Lufthansa operates 747-8s and has 777Xs  on order, but third-party clients’ engines will also be supported from the European facility.

While the precise location of the operation has still to be decided, a 2018 opening is targeted.

Lufthansa Technik’s own engine overhaul facilities – except for regional aircraft power plants – have traditionally been at its base in Hamburg. It has a shop for CFM International CFM56s and international Aero V2500s; plus a separate facility for large legacy types such as the CF 6.

Capability to overhaul the 777X-powering GE9X promises to give the new joint venture access to a large party customer market, but there appears to be limited potential for services on the GEnx-2B, which equips the 747-8.

The site will form part of GE’s network of international repair facilities, and the two partners will cooperate on development of repairs and on-wing support services.

Source:Flightglobal/GE Aviation

 

Royal Jordanian Eyes North America After European Traffic Decline

Royal Jordanian Airlines is planning to expand its transatlantic network as traffic from Europe has declined as a result of political crises in the Middle East and North Africa.

The airline lost “most” of its tourist traffic originating from European countries because travel packages often combined Jordan with Syria and Egypt, fleet and network planning director Eyad Birouti told Flightglobal at the Connect conference in Killarney in Ireland.

Washington DC and Toronto could be served nonstop from Amman with the airline’s five Boeing 787 fleet. But 787-8 flights to Los Angeles, with full payload, would require a fuel stop in Europe, said Birouti. Amsterdam, Dublin and Vienna are among the cities being investigated as potential stopover points.

The carrier is also planning network expansions in Africa and Asia to compensate for declining traffic from Europe, said Birouti. Connecting flights to the Asia-Pacific region could be a way of filling aircraft on existing routes from Europe.

Source : Royal Jordanian

 

Rolls-Royce Makes Progress on Testing 787 Engine Upgrade

Rolls-Royce is close to completing a round of testing on the latest version of the Trent 1000 engine for the Boeing 787, according to the Arnold Engineering Development Center (AEDC) in the USA.

Since earlier this year, AEDC has hosted an R-R team performing altitude operability performance and icing tests on engine serial number 11003, one of several prototypes developed to certificate the Trent 1000-TEN upgrade.

The tests on engine 11003 have been “fantastically successful”, according to Tom Schmidt, a project manager for Aerospace Testing Alliance, which was overseeing the testing by AEDC.

That echoes comments by R-R executives last month, who said the then-ongoing testing at AEDC had shown better fuel efficiency for the Trent 1000-TEN at higher altitudes.

The TEN upgrade migrates several features developed for the Trent XWB engine back into the lower-thrust engine for the 787. The new features include a rising-line compressor and a three-stage blisk at the front of the high-pressure compressor section.

Rolls-Royce has predicted that the Trent 1000-TEN upgrade will provide a 3% advantage on fuel consumption on short flights to 3,000nm; compared to the competing GE Aviation GEnx-1B engine.

Source : Flight Global /Rolls- Royce

 

GE Aviation, Woodward Form Fuel Systems Joint Venture

GE Aviation and Woodward Inc. have formed a 50/50 venture to design, develop, source, supply and service fuel systems for GE90,GEnx, GE9X and future GE large commercial engines.

GE Aviation president and CEO David Joyce said the joint venture will “further strengthen both companies’ capabilities and secure a high quality fuel systems supplier for GE’s record production volume on large commercial engines.”

According to GE Aviation, production rates for its jet engines and components have increased significantly over the last five years; with large commercial engine production more than doubling to close to 500 engines in 2015.

GE Aviation said that under the terms of the joint venture agreement, Woodward will receive $250 million in cash, and the parties will participate jointly in the operating results of respective programs.

Source : ATW/GE Aviation

 

LATEST NEWS IN BRIEF  

  • United Airlines will spend $100 million to acquire a 5% stake in Azul Brazilian Airlines. The two carriers have entered into a strategic partnership that will include code-sharing and reciprocal loyalty program benefits.
  • GE Capital Aviation Services Limited (GECAS) has completed a purchase-and-leaseback transaction with Lion Group subsidiary PT Batik Air Indonesia for four new Airbus A320s.
  • Avolon delivered a Boeing 737-800 to Hainan Airlines. This delivery is Avolon’s first aircraft on lease to Hainan Airlines.
  • Bombardier has delivered its 500th Q400 turboprop aircraft to Calgary-based WestJet Encore.
  • Enter Air announced an order for two 737MAX 8s and two Next-Generation 737-800s.  It is the first direct order for Boeing from the Polish charter carrier.

  • Vietnam Airlines took delivery of its first Airbus A350-900, becoming the second operator of the type.

vietnamairlinesa350xwb-usethisone

  • Transaero Airline has expanded its European Aviation Safety Agency’s (EASA) certificate to include performing C checks on Boeing 737 Classic and 737NG aircraft.
  • Swiss International Air Line has confirmed that it will be the first operator of the Cseries, with service entry slated for the first half of 2016.
  • Embraer has secured firm orders from three airlines and one aircraft lessor for a total of 50 E-Jets, evenly split between the current generation and the E2 variants.
  • Saudia became the launch customer for the A330-300 Regional with a firm order for 20 of the aircraft plus a firm order for 20 A320ceos.

 

Air Cargo

CAL Cargo Air Lines to Transport Aircraft Engines

CAL Cargo Air lines has launched “CAL Express”, service specifically designed for the transportation of aircraft engines.

Under the new service, the carrier will transport every size and type of aircraft engines around the world, using 747-400s.  CAL is also qualified to deal with dangerous goods, so the carrier will be able to transport non-purged engines as well.

This new service also includes ground-handling, storage and road-feeder services.  In the case of aircraft on the ground, CAL is including expedited customs clearance and transit time, as well as charter options.

According to Eyal Zagagi, CEO of Cal Cargo Airlines, one of the reasons CAL Engines was created in response to a 25% per year increase in engine transport business over the last few years.

Source: Air Cargo World / CAL Photo

 

DHL Expands Global Reach with Cincinnati Upgrade

It is no surprise that DHL’s largest U.S. hub is in Cincinnati.  Its central location allows the express carrier to best reach the U.S. East and West coasts from a flight timing perspective.

Since its exit from the US domestic express market in 2009, DHL has set its sights on growing in international service to/from that country.  DHL invested US$108 million to upgrade and expand its American hub at the Cincinnati/Northern Kentucky Airport (CVG).  Travis Cobb, DHL’s senior vice president, network operations Americas, said part of the investment would be for a new apron to accommodate an additional 18 aircraft. The remainder would be used for infrastructure, including warehousing and automation.

The Cincinnati hub is one of three global DHL hubs – the others are Leipzig,Germany and Hong Kong. Globally, Cincinnati is second in size and volume only the Leipzig hub, processing approximately 46 million international shipments annually.

Source:   Air Cargo World/DHL

 

                                         MILITARY

Boeing Shifts toward Full-Rate Production of Navy Submarine Hunter

Workers assembling Boeing’s biggest Puget Sound area military contract are preparing to lift its production rate; now that the first group of P-8A  submarine hunter aircraft have proved to be a good investment for the government.

The planned increase to 1.5 aircraft monthly will be dwarfed by the 42-monthly rate for the civilian version from the same Renton site.  It is a significant step for the P-8A.

The P-8A Poseidon is an important contract for Boeing’s military side, and it is also important for the Puget Sound area.

In February 2014, Boeing won a $2.4 billion contract for the first 16 of the full-rate jets. Eventually, the Navy wants 117.

The P-8A contract is important for Boeing and the region; partly because of the revenue it’s pulling in, partly because the program is running so smoothly.

Source : Puget Sound Business Journal

 

Canada Accepts First Six Sikorsky CH-148 Cyclones

The Royal Canadian Air Force has accepted delivery of its first six Sikorsky CH-148 Cyclone maritime patrol helicopters, making a major step forward for the Sea King replacement program.

The Total value of the Cyclone acquisition is $7.6 billion,including $1.9 billion for development and production of 28 helicopters and$5.7 over 20 years for service contractor support.

The twin-engine, medium-lift Cyclone is derived from Sikorsky’s civil S-92 and is designed for shipboard maritime surveillance and rescue operations on Canada’s east and west coasts.

The cyclones will replace 27 long serving Sikorsky CH-124 Sea Kings that have been in constant operation since 1963 and are the oldest aircraft in the RCAF inventory.

Source : Flightglobal/Picture Canadian Armed Force

 

Researched and Compiled by : Ed Kaplanian

Commercial Aviation Advisor

Contact – ed@kaplanianreport.com