Kaplanian Report – June 2020

ON THE BOEING FRONT

    Boeing to Model Potential Spread of Pathogens Inside Aircraft Cabin

Boeing appointed an executive on Thursday, May 14, to lead the company’s Confident Travel Initiative, the plan that intended to help people get back on planes.

Boeing named Mike Delany, currently vice president of digital transformation at Boeing Commercial Airplanes, to the role, which aims to “minimize air travel health risks” in a Covid-19 world.

“As air travel slowly begins to resume and restrictions ease around the globe, health and safety remain our top priorities,” said Boeing CEO Dave Calhoun in the company’s news release.  ”Mike’s deep technical expertise, leadership skills, industry knowledge and great passion for our customers make him uniquely qualified to lead this effort.”

Delany will work with Boeing customers to design and implement policies regarding facial coverings, plane cleaning, and temperature checks.  The checks will have to be completed before boarding, adding another level of complexity for travelers and airlines.

Boeing also referenced its commitment to air quality when announcing the new role.  All Boeing planes are equipped with high-efficiency particulate air, also known as HEPA, filters, ”similar to those used in hospitals and industrial clean room.”  The company says HEPA filters are better than 99.9% effective at removing particulates including viruses.

Air filtration helps, but it doesn’t eliminate the risk of disease transmission. Bacteria and viruses are viable on surfaces—such as seat-back pockets—for some time after being deposited by a cough or sneeze.

Boeing hopes modeling will predict how the virus might spread through aircraft with differing seating configurations.The company hopes to determine how variables such as coughing (with or without masks) and use of hand sanitizer might affect potential contagion.

“We are using science as opposed to anecdote…and emotionally-driven responses,” says Delany, who is also Boeing’s vice-president of digital transformation.

Source: Boeing/Barron’s/Picture Shtterstock

                      

ON THE AIRBUS FRONT

                   Airbus Opens A220 Hanger in Mobile, Alabama

Airbus celebrated a pair of milestones at its commercial aircraft production in Mobile, Alabama; announcing the official inauguration of production activities in its newly built final assembly line hanger and the start of the first U.S.-built A220 for JetBlue.

The new 270,000-sq-ft hanger, capable of accommodating assembly of both A220-100 and A220-300 aircraft, has officially opened for business after an 18-month construction project.   It houses five primary assembly stations where workers attach major airframe component assemblies for a completed aircraft in a flow line process. Airbus began producing A220 aircraft in Mobile in August 2019, using space in an existing A320 final assembly line hanger, and newly built support hangers.  With the completion of the new hanger, the Airbus production site in Alabama has doubled in size.

Airbus recently welcomed the first component assemblies destined to become an A220 for JetBlue into the new hanger.  JetBlue will become the second customer that takes an A220 from Mobile, following Delta Air Lines.  JetBlue expects to take delivery of the first U.S.-made A220 during this year’s fourth quarter.

“The team is excited to start working in their new facility and welcome a new customer,” said Airbus president of A220 USA Paul Gaskell. “It’s a strong endorsement from JetBlue in this challenging time,” said Paul Gaskell, president of A220 USA and head of A220 Program in Mobile.

Source: Airbus/Airbus Photo

         

        REGIONAL/BUSINESS JETS

                           Cessna SkyCourier Completes First Flight

The Cessna SkyCourier twin-turboprop prototype lifted off on its first flight Sunday morning May 17 from Beech Field at Textron Aviation’s east campus in Wichita. Piloted by senior test pilot Corey Eckhart and chief test pilot Aaron Tobias, the utility twin flew for two hours and 15 minutes.

“We were very pleased with how the Cessna SkyCourier performed throughout its first flight,” Eckhart said.”It was particularly impressive to see how stable the aircraft handled on takeoff and landing. The Cessna SkyCourier already displays a high level of maturity in its flight characteristics, especially for a first flight.”

“We were able to accomplish everything we wanted on this flight, and that’s an excellent start to the flight test program.”

With an initial order from FedEx for 50 copies of the high-wing airplane and options for 50 more, the SkyCourier is capable of flying 200 ktas powered by two 1,100-shp Pratt & Whitney PT6A-65SC turboprop engines driving 110-inch McCauley propellers.  It also features a Garmin G1000 NXi flight deck.

Configurable for both cage and commuter operations, the high-wing turboprop is designed to carry a payload of up to 6,000 pounds.  It is equipped with an 87-inch cargo door, a flat floor, and a nearly 70-inch tall and wide cabin to accept three standard LD3 air cargo containers.  In passenger configuration, it will have seating for up to 19 passengers, with a netted cabin area for luggage and equipment.  It also will be available in a mixed passenger/cargo combination.

Source: Textron Aviation

         Boeing Business Jets New Aircraft Development Continues 

As the 737 Max crisis rumbles on, Boeing says it is “staying close to VIP customers” on the re-engines narrow body.

Two examples of the BBJ Max 8 have been delivered green to date, and while Boeing is continuing to work on the -9 and -7 variants, it will not give a delivery timeframe for either model.

The pair were originally scheduled for certification and customer handover in 2020 and 2022 respectively.  Boeing records 14 orders for the CFM international Leap-1B-powered BBJ Max, most of them -8s- though Boeing Business Jet expects the shorter Max 7 to be the eventual favorite, owing to its 7,000nm(13000km)-range:360nm longer than the -8 and 675nm longer than the -9.

Boeing has also expanded its VIP wide body offering with the introduction in late 2018 of the BBJ777X.  The twin-aisle airliner is the updated version of the BBJ 777, of which Boeing has sold 13 examples to date.

Boeing describes the 777X as a “far superior offering”, with GE Aviation GE9X engines and a new, more advanced composite wing.

As of this month two Boeing BBJ Max 8s have been delivered.

Source: Boeing Business Jets/Picture Boeing

                                                                      

OTHER AVIATION NEWS

Air France Terminates A380 Fleet with Immediate Effect

Air France has accelerated plans to phase out its Airbus A380 fleet and will retire the aircraft immediately rather than in 2022 as previously scheduled.

Air France grounded its A380s on March 16 as the coronavirus pandemic began to take a toll on operations, before ultimately suspending the majority of its scheduled passenger flights. Air France-KLM announced on May 20 the “definitive end” of the French carrier’s Airbus A380 operations.

“Initially scheduled by the end of 2022, the phase-out of Airbus A380 fleet fits in the Air France-KLM Group fleet simplification strategy of making the fleet more competitive, by continuing its transformation with more modern, high-performance aircraft with significantly reduced environmental footprint,” the group says.

Five of the Airbus A380 aircraft in the current fleet are owned by Air France or on finance lease.  A further four are on operating lease.  Air France-KLM says the impact of the A380 phase-out write down is estimated at $547 million dollars and will be booked in the second quarter of 2020 as a non-current cost/expenses.  The fleet is powered by Engine Alliance GP7200s.

In December Air France-KLM Group said it was ordering another 10 Airbus A350-900s, which would be used to replace the company’s A380s.

Source: Air France/Picture Air France

                                Delta to Retire Its 777 Fleet

Delta Air Lines will retire its Boeing 777 fleet by the end of 2020 as the coronavirus crisis continues to disrupt global travel, creating openings for airlines to permanently streamline fleets and save money by shifting to more-efficient aircraft.  The move will leave Delta with a single type of ultra-long aircraft: Airbus A350s.

The Atlanta-based airline has 18 777s, including 10 of the long-range 777-200LR variant, according to Cirium fleets data.  Nine of these are currently operating and nine are in storage.

Delta’s first 777s joined the fleet 21 years ago, and the airline says it will replace them with its next-generation A350-900s;  which burn 21% less fuel than the Boeing jets. Delta has nine  A350s in service, four in storage and 12 on order, according to Cirium.

In past weeks the airline used 777s for cargo and repatriation flights between North American and cities in Asia,Europe and Australia.

Source: Delta Air Lines/Picture Delta Air Lines 777-200LR

           Airbus and Rolls-Royce Have Axed the E-Fan X Project

Airbus and Rolls-Royce axed the e-FanX demonstrator programs year before the experimental hybrid-electric engine airliner was supposed to fly.  The E-Fan X program was launched to explore electric aviation and involved equipping a BAE Systems Avro RJ100 with a hybrid powertrain.  But Airbus chief technology officer Grazia Vittadini says the airframer is having to “ navigate the realities” of a world impacted by the corona virus crisis, and concentrate on priorities.

She says Airbus and Rolls-Royce have as a result “jointly decided” to “bring the E-Fan X demonstrator to an end”.  “As with all ground-breaking research projects, it’s our duty to constantly evaluate and reprioritize them to ensure alignment with our ambitions,” she adds.

“These decisions are not always easy.  But they are undoubtedly necessary to stay the course.”  Vittadini points out that the effort to decarbonize the aviation industry is “no small feat”, adding: “to achieve this, we need to re-focus all our efforts on technology bricks that will take us there.”  The E-Fan X, launched in 2017, was due to carry out its maiden flight in 2021.

Source: Flightglobal

   Mitsubishi Aircraft to Close all Non-Japan Locations, Shelves M100 

Mitsubishi Aircraft is closing all non-Japan locations and moving all Spacejet activities back to its headquarters in Nagoya, Japan, above coming in response to cost pressure amid the coronavirus aerospace downturn.

As part of the consolidation to Japan, the company will halt flight testing of its 90-seat SpaceJet M100 regional jet and suspend development of its 76-seat M100, Mitsubishi Aircraft says.

Most effected outside Japan is its operations in the US Northwest.  The Mitsubishi Aircraft U.S. headquarters in Renton will close, and flight test operations in Moses Lake will cease operations.

Mitsubishi Aircraft has not announced any change to a plan under which its parent Mitsubishi Heavy Industries will acquire Bombardiers’s CRJ program for $550 million.

Source: Mitsubishi Aircraft/Picture Mitsubishi Aircraft        

      

LATEST NEWS

  • BOC Aviation has signed a purchase-and-leaseback agreement with Southwest Airlines for 10 Boeing 737 Max 8 aircraft.
  • Emirates largest operator of the Airbus A380 axes the aircraft and seen cutting deliveries.
  • Boeing the U.S. Navy received its 100th P-8A aircraft from Boeing on May 14 as the global fleet, which also includes the Indian navy and the Australian and the U.K. airfares approaches 300,000 flight hours.

  • Lauda subsidiary of Ryanair plans to cancel all Airbus deliveries and replace them with ones from Boeing.

  • American Airlines is parking its fleet of Airbus A330-200s in storage until at least 2022, part of the airline’s broader effort to downsize in response to the Covid-19 Pandemic.
  • Air Lease Corp said it would reduce capital expenditure on new jets in a move likely to restrict its-near-term growth; but still support liquidity’s it faces demands from airlines for rental relief seen as crucial to their survival.
  • United Aircraft of Russia is set to begin mating the tail and engine pylons for the first llyushin ll-96-400M, which is undergoing assembly at the Voronezh-based VSO plant.

  • Saab Aircraft has secured an SKr1.6 billion ($ 165 million) order for an undisclosed number of its Saab 2000 Erieye airborne early warning control (AEW&C) system aircraft.

Source:  Air Lease, Emirates,Saab Aircraft,American Airlines, Ryanair, United Aircraft,Boeing

 

AIR CARGO

     Alaska Airlines Transports  First Copper River Salmon to Seattle

Alaska Airlines teamed with partners to fly the first catch of salmon from Copper River to Seattle on May 15th.  The first to enjoy the fish will be over 200 healthcare workers from the Swedish Medical Center-Ballard.

The first catch of fresh, sustainable Copper River salmon arrived in Seattle on an Alaska Airlines plane.  This is not new for the airline.  Some Alaskan communities rely on Salmon exports for economic success.  In Cordova, Alaska, over 50% of local residents work in the fishing industry.  Thanks to air travel, the fish can end up in markets less than 24 hours after being pulled from the water.

Managing director of cargo for the airline, Torque Zubeck, said the following:  “ Alaska Air Cargo has been a partner of the Alaska seafood industry.  Now more than ever we provide a critical service that directly impacts the economic vitality of the region.  In Cordova alone, more than half of residents are directly involved in the fishing industry or related business.”

Chef Douglas will feature the salmon donated by seafood processors and Copper River Marketing Association to create over 200 meals for Seattle-area medical professionals.  Alaska Airlines will send pilots, flight attendants, and management employees to be part of the efforts after carrying the fish on its planes.

Source: Alaska Airlines/Picture Alaska Airlines

                      OTHER NOTEWORTHY NEWS

            The Planes in Spain Parked Neatly on the Plain

Dozens of passenger aircraft belonging to European carriers stand idled in neat lines in what has become a giant airplane parking lot amid the flat farmlands of eastern Spain.

Teruel Airport specializes in the storage and maintenance of aircraft, and business has boomed since coronaviris lockdowns globally forced airlines across Europe to ground fleets for several weeks.  There is no end in sight for many.

Planes showing the markings of commercial airlines including: British Airways, Lufthansa and Air France stand parked, buffeted by spring wind blowing across the plain.

“Teruel’s climate is dry-semi-desert with more than 250 days of sun per year,” said airport manager Alejandro Ibrahim.

“Also there is very little air traffic congestion which makes it the ideal place for plane preservation and maintenance.”

The airport currently hosts 95 wide-body aircraft, including eight of the world’s largest passenger airliners-the Airbus A380.  The number of planes arriving per week to be parked in the airport has doubled since the start of the pandemic.  The airport, owned by the local government, has not increased its rates since the beginning of the crisis, Ibrahim said.

The sudden stop to air travel has led airlines struggling to find space to store their planes. In Europe, some airlines have grounded their entire fleets and are storing their aircraft by parking them in airports, including on now-unused runways.

Source: Reuters/Picture spainsnews.com

                         

 

 

 Researched and Compiled by : 

Ed Kaplanian    Commercial Aviation Advisor  

Contact – ekaplanian@msn.com

Editor:   Lee Kaplanian  

 

 

 

 

 

 

 

 

Volume 5 Issue 7 The Kaplanian Report

On the Boeing Front

                     Boeing Gets Approval for Folding Wings on 777X

Boeing’s 777X will become the first heavily used commercial airliner with the technology. 

While the wings are common on smaller defense aircraft, the FAA had to institute new regulations for Boeing’s commercial plane to avoid mishaps like the wing flaps coming loose during high winds.

Boeing assured the regulator that a locking mechanism would make it impossible for the wings to retract while in flight. The FAA finally gave approval to the 777X on Friday May 18.

Airlines will be able to park the 777X at current gates despite its 235 feet wing, thanks to the 12-foot foldable section.

The wings are made from lighter carbon fiber composites instead of aluminum. ”This airplane will be the most efficient twin-jet overdeveloped in commercial history,” Terry Beezhold, the 777X’s chief project engineer called it “this beautiful wing” in a recent video made by the company. ”This airplane actually will be the most efficient twin-jet ever developed in commercial history.” Beezhold said.

Source : Bloomberg/Boeing 

              Boeing Marks 737 Max Anniversary with 130-Strong Fleet   

Boeing has passed the one year anniversary of the 737 Max with a staggeringly large in-service fleet that has fulfilled promises of improved fuel efficiency. The company delivered 130 aircraft representing two versions of the 737 Max in the 12 months since the first delivery to Lion Air’s Malaysia-based subsidiary last May, the company says in an online blog post.  

The deliveries might have been even higher, but engine supplier CFM International fell several weeks behind on a planned ramp-up of Leap-1B engine production, CFM plans to catch up on deliveries in the third quarter.

So far, the 28 737 Max operators have logged 118,006 hours on 41,797 flights that carried 6.5 million passengers, according to Boeing.

The fleet now stands at a mission dispatch rate of 99.4% and should improve to the 99.7% standard by the end of the year.

Boeing has sold 4,509 firm orders of the 737 Max family with the 737-8 version is by far the most popular.

Source :  Boeing                

ON THE AIRBUS FRONT

                              Airbus BelugaXL on Track for First Flight

Airbus said the BelugaXL has passed the ground vibration test (GVT), a requirement for certification of the aircraft that paves the way toward its maiden flight this summer.

“The objective of this test is to measure the dynamic behavior of the aircraft and confirm theoretical models of various flight conditions, such as maneuvering, flying in gusty conditions and landing. This test data also helps clear the aircraft’s flight envelope,” Airbus said in a statement.

The BelugaXL was launched in November 2014 to address the transport and ramp-up capacity requirements for Airbus beyond 2019.  The new oversize air transporters are based on the A330-200 Freighter, with large re-use of existing components and equipment. The first of five BelugaXLs will enter service in 2019. 

Source : Airbus/Picture Airbus

          

REGIONAL/BUSINESS JETS

                                Air Baltic Signs for 30 More CS300s

Latvian carrier Air Baltic has signed for 30 more Bombardier Series aircraft and taken options for 30 more of the type. Deliveries of the new aircraft are set to begin in the fourth quarter of 2019.

Air Baltic has already ordered 20 of the type, eight of which are in commercial service. “In 2017, we successfully executed our fleet modernization strategy, and are excited to further grow our fleet up to 80 CS300 aircraft while phasing out our other types in the next three years.”

The new aircraft will support the next stage of its business strategy, which targets significant route expansion in key Baltic markets Latvia, Estonia and Lithuania.

“A critical part of this new strategy is the introduction of a larger and exclusive fleet of all CS300 aircraft, which are the most suitable aircraft for the markets in which we operate,” said chief executive Martin Gauss. 

Source : Reuters/Picture Air Baltic      

      Boeing Business Jets Grows Order Book with New Sales

Boeing Business Jets have won four new orders in 2018 as elite customers continue to favor Boeing’s portfolio of ultra-large-cabin, long range airplanes, the company announced on May 28 at the European Business Aviation Conference & Exhibition (EBACE).

The New Orders this year follow an impressive 2017 in which customers purchased 16 Boeing Business Jets. Two of the new orders this year are for the BBJ MAX airplane, adding to a backlog of 19 airplanes and making the BBJ MAX one of the best-selling business jetliners in history.

“The performance advantage of the BBJ MAX is a big sales driver,” said Greg Laxton, leader of Boeing Business Jets. ”The airplane is perfectly suited for discerning customers who want to fly further without stopping.” 

Source : Boeing Business Jets Communications

                                                                       

OTHER AVIATION NEWS

      SIngapore Airlines To Merge Regional Silkair Unit into Main Brand 

Silkair’s Boeing 737 fleet will undergo a major cabin overhaul pending the unit’s merger with the main Singapore Airlines brand.

The full merger will take place after 2020, which gives the SIA Group time to upgrade the cabins aboard the regional carrier’s narrow body fleet, says SIA. 

“The program will comprise investment of more than $100 million to upgrade the wholly owned subsidiary’s cabins with new lie-flat seats in business class, and the installation of seat-back in-flight entertainment systems in both business class and economy class”, says SIA.This will ensure closer product and service consistency across the SIA Group’s full-service network.  

Singapore Airlines is one year into our three-year Transformation Program and the announcement of May 18 of merging Silkair into Singapore Airlines is a significant development to provide more growth opportunities and prepare the Group for an even stronger future,” says SIA chief executive Got Choon.

Silkair operates 34 aircraft. They comprise of five 737 Max 8, 17 737-800s, three Airbus A319s, and nine A320s. The A320 family aircraft are being phased out in favor of the 737s, of which Silkair has orders for 32 Max 8s. 

Source : Singapore Airlines

                     GE9X Completes First Phase of Flight Testing

In early May, GE wrapped up the first phase of a two-stage flight-test effort on the 105,000lb-thrust GE9X. Phase 1 included 18 flights on board the company’s Victorville-based 747-400 flying testbed, GE9X program manager Ted Ingling said. The 105,000lb-thrust power plant was flown to Evendale, Ohio to prepare for phase 2, which is scheduled to begin in the third quarter.” It will be months of work to bring the engine down and back up again. The majority of the activities are around the instrumentation that we have on this vehicle. There’s over 1,600 pieces of discrete information through sensors that get bundled onto the engine routed into the aircraft,” Ingling says. 

“We want to preserve that instrumentation for the missions that follow. As a result, what would normally be a quick turn-around for incorporation of the hardware changes takes us a much longer time to bring the engine down and back up and make sure all the instrumentation is working,” he adds.

The first phase of flight-testing with the GE9X kicked off on March 13, with engine designated as No.4 within the program lifting off in Victorville. In nearly two months, the 747-400 flying testbed logged 110 flight hours overall during the 18 flights.

“We are very encouraged about the engine. All indications from flight test is that the engine is doing exactly what we want it to do and we’re on track to meet our objectives on performance,” Ingling says. ”The engine is really performing well and we couldn’t be happier with that.”

Source : GE Aviation

      JetBlue Founder Raising Funds for New U.S. Airline, Report Says 

David Neeleman, who started JetBlue Airways Corp.with $100 million in 2000, is raising money to launch a new low-cast carrier focused on secondary airports in the U.S., according to Airline Weekly.

The airline, to be called Moxy Airways, has secured orders for 60 Bombardier CS300 aircraft, the trade journal, citing people familiar with the matter.  The first would arrive in 2020, perhaps a ply on the word Moxie—meaning determination and pep—Moxy Airways reportedly aims to get of the ground in 2020.

The timeline coincides exactly with when Bombardier – and its new partner Airbus – intend to open a Series assembly site in Mobile, Alabama.

Moxy is designed to maximize the economic advantage of the C Series, along with the use of smaller, secondary airports such as Providence, Rhode Island, Forth Worth, Texas, Gary,  Indiana and Burbank, California. Plus the Long Island cities of Islip and Farmingdale, Airline Weekly said. The advanced jetliner reduces fuel burn due to its modern engines and carbon-fiber fuselage.

With 60 CS300 orders, Moxy would become the second-largest C Series customer after Delta Airlines.  Delta is acquiring 75 of the smaller CS100 model and plans to begin service with the plane next year. 

Source : Bloomberg/Ed’s Research

 

    LATEST NEWS

  • IATA downgraded its 2018 profit forecast for the global airline industry, projecting airlines will collectively earn $33.8 billion this year, down 12% from the $38.4 billion predicted in December 2017 as fuel costs rise. 
  • Qatar Airways Group chief executive Akbar Al Baker has been appointed the chairman of ATA board of governors. 
  • Ethiopian Airlines has taken delivery of its 100th aircraft, a Boeing 787 Dreamliner on June 6,2018, once again leading the way in fleet expansion and modernization in Africa.
  • LOT Polish Airlines is acquiring six more Boeing 737 MAX 8s as part of its fleet modernization plans.
  • United Airlines debuted its first passenger service utilizing a 737 MX 9 between Houston and Orlando International Airport on June 7. 
  • BOC Aviation Limited delivered its first Boeing 737 MAX8 aircraft to its newest customer Corendon Airlines based in Turkey. 
  • CDB Aviation Lease Finance delivered two Boeing 737-800 aircraft to Ukraine International Airlines. The aircraft delivered from CDB Aviation order book with Boeing.
  • AirAsia Group received shareholder approval to sell 55 Airbus A320 family aircraft and seven CFM56s on an operating lease to FLY leasing; deal includes options on another 20 A320neos.
  • Vistara the Indian affiliate of Singapore Airlines Ltd has opted for six 787s with an option to buy four more. Vistara is considering between the 787-9 and the 787-10 version. 
  • Xiamen Airlines has taken delivery of its first Boeing 737MAX 8, expanding its fleet to 200 aircraft. The air carrier operates an all Boeing fleet of 737s,757s and 787s, with 31 consecutive years of profitability. 
  • Royal Brunei Airlines has taken delivery of its first Airbus A320neo aircraft during an event in Toulouse, France. 

Sources : Ed”s Research From Various Aviation Resources.

 

AIR CARGO

           Lufthansa Cargo Introduces Twice Weekly B777Fs to Chengdu

Lufthansa Cargo has confirmed its latest capacity increase into Chinese cargo market by adding twice weekly B777 freighter services to the city of Chengdu. 

Chengdu in western China has joined Shanghai, Beijing, Guangzhou and Hong Kong as Lufthansa Cargo freighter connections to the country.

Speaking at Air Cargo China in Shanghai, Frank Naeve, Lufthansa Cargo vice president Asia-Pacific, said: “The extension to our network will allow us to offer solutions for booming markets in the west of China”. “These new flights to Chengdu are strengthening our position in China. It is a further investment into the very important Chinese airfreight market,” he declared.

Lufthansa Cargo flew 240,000 tons of cargo from and into China in 2017.

In addition to this news, Lufthansa has ordered two Boeing 777Fs to add to its fleet of five B777Fs, to be delivered in February and March of 2019.

“The Boeing 777F is not only the world’s most powerful, efficient and environmentally friendly freighter, it is a visible sign of our modernization strategy,” said Peter Gerber, chief executive of Lufthansa Cargo.” He added: “With the growth of our B777 freighter fleet, an important milestone has been reached on our way to forming a company for the next generation.”

With a full payload of 103 tons, the B777F is able to stay in the air for ten and a half hours. It covers a distance of more than 9,000 kilometers ( 5592 miles) non-stop.

Source : Aircargonews/Lufthansa/Picture Lufthansa

 

 Maintenance, Repair and Overhaul News

Services May Justify Future Boeing Aircraft: Fitch

 Boeing’s increasing emphasis on services and lifecycle revenue streams for its product is a “key development” for the company, says Fitch Ratings.

The credit rating agency had affirmed Boeing’s long-term rating at ‘A’ with a stable outlook, and says that Boeing’s 4.25 billion takeover of parts supplier KLX Aerospace Solutions—expected to close in the third quarter—will not affect this assessment.

Fitch broadly approves of Boeing’s aftermarket strategy, which it believes could drive growth and margin gains. It also increases the viability of clean-sheet aircraft programs by opening another revenue stream to recoup high development costs.

“Potentially greater services revenues through the life of a program could make some proposed programs more economically viable than if evaluated only on an original equipment basis,” Fitch states.

The obvious potential program in this regard is Boeing’s new midsize aircraft (NMA). Fitch questions whether Boeing’s current setup can provide a business case for the aircraft given development costs, but notes this might change with production system improvements and aftermarket gains.

“Key questions for Boeing over the next year will be whether it raises 737 rates further and whether the supply chain can support additional rate hikes”

Source: Fitch Credit Rating Agency

        MRO LATEST NEWS

  • ST Engineering Aerospace opened a $46 million, 173,500 sq ft maintenance and overhaul facility in Pensacola, Florida.  It’s the third facility in the US.  They have signed UPS as launch customer for Boeing 757s.
  • Boeing & Safran agreed to form a joint venture to design, build and service APUs.
  • Skytech-AIC was appointed by Kuwait Airways to market for sale the airline’s single, low-time, GE-powered 747-400 Combi and its first A340-300 aircraft, delivered new to Kuwait Airways in 1994-1995.
  • Thai Airways & Rolls-Royce signed cooperation agreement over Trent Maintenance.
  • German Asset Manager Dr Peters, on June 5th, disclosed plans to part out two ex-Singapore Airlines Airbus A380s.  Dr Peters executive, Anselm Gehling, estimates that the company can achieve a residual value of about $80 million per aircraft. This is done with  $45 million from parting out airframe, about $4 million from leasing engines over the next 18 months, and $32-$33 million from selling the engines in 2020.    

        

 

 

 

 

Researched and Compiled by : 

Ed Kaplanian    Commercial Aviation Advisor  

Contact – ekaplanian@msn.com

Editor:   Lee Kaplanian