slashed by some 2,000 jobs out of a total of 12,500 - a move which comes at a challenging time for Italy, which has just fallen back into recession for the third time in as many years, and where un- employment is at its highest level since the 1970s. But the airline could not have found a bet- ter partner, according to Attwood, some- thing that chairman, Roberto Colannino was keenly aware of when he started courting air- lines from the Gulf as part of his ‘dream’ of rescuing Alitalia. Etihad’s investment will bring both cash and experience to the table - not to mention the Etihad Equity Alliance, an existing net- work of 700 aircraft, 400 desti- nations and 110 million custom- ers worldwide, linked through the airline’s series of stakes in seven airlines, including airberlin, Germany’s second biggest carri- er, Irish airline Aer Lingus, India’s Continued on page 4 Read by thousands of aviation professionals and technical decision-makers every week www.avitrader.com WORLD NEWS Etihad’s ‘litmus test’ begins for Alitalia 2017 turnaround Troubled Italian carrier to benefit from global network of eight partner airlines As the dust settles around Eti- had’s decision to go ahead with its proposed 49% investment in Alitalia, Italy’s beleaguered carri- er, industry observers have begun to evaluate the risks and rewards that lie ahead for the new part- nership, with Etihad pledging to return the Italian airline to profit by 2017. Etihad has agreed to pay €560m for its stake, which will make it the largest shareholder among a group of mostly Italian stakehold- ers, including UniCredit and In- tesa Sanpaolo, Italy’s two biggest lenders, as well as Franco-Dutch airline Air France-KLM, which pre- viously held 25% but has seen its investment diluted to 7%. In total, the deal is worth €1.758bn, including up to €598m of finan- cial restructuring to be provided by lenders and shareholders. But Etihad could invest up to €1.25bn in total over the next four years to achieve its goal, according to Ita- ly’s transport minister. In its “riskiest” investment to date, Etihad’s James Hogan (seated, third from left) signs off on its 49% stake in Italian flag carrier Alitalia Etihad WEEKLY AVIATION HEADLINES ISSN 1718-7966 AUGUST 18, 2014 / VOL. 452 China Investment Corp (CIC) a sovereign wealth fund worth $653bn, is understood to be in talks to buy Avolon, the Dublin- based aircraft leasing company, for $4-5bn including debt, according to sources linked to the deal. CIC is working with Aviation Industry Corporation of China (AVIC), the state-owned aerospace firm, in its bid for Avolon, in a move to capitalise on strong demand for aircraft assets from Asian buyers. Chinese firms eye Avolon Brazil’s World Cup winner Gol, the Brazilian low-cost carrier, came away a winner from the recent Fifa World Cup in Brazil, posting a 24.4% rise in second quarter revenues compared to the same period in 2013, as it flew a total of 3.4 million passen- gers around the country during the tournament, achieving record load factor levels which peaked at 81.2%. The airline reduced net losses to R$145m ($63m), down from losses of R$432m a year earlier, but operating costs rose 20.1% to R$2.34bn. Taking on the national airline of Europe’s fourth biggest econo- my is no small feat. The airline, regarded as a source of “em- barrassment” by many Italians, according to Ed Attwood at Ara- bian Business, is understood to have posted a net loss of €569m London airports’ record July London’s Heathrow and Gatwick airports both posted record pas- senger traffic in July as Britons set off for their summer holidays. Heathrow said 6.97m passengers passed through its doors during the month, representing its busi- est-ever month, while a record 240,000 people travelled through on July 27th - its busiest-ever day. Gatwick posted a 6% rise in pas- senger numbers in July to 4.1m, due in part to a rise in business travel but also sparked by the launch of Norwegian Air Shuttle’s low-cost flights to the US. in 2013, more than double its net loss in 2012. It has been more than a decade since it last posted a profit - which it has only achieved a handful of times over its 68-year history. The job of turning Alitalia around will not be easy, according to Saj Ahmad, chief analyst at Strategic Aero Research, who said it was Etihad’s “riskiest” investment yet, due to the “ground-up” problems the carrier brings with it. Alitalia’s workforce is set to be “Overnight, the financial position of Alitalia will change. But there’s no quick fix. We have a three year plan to bring Alitalia back to profit by 2017.” James Hogan, CEO, Etihad
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slashed by some 2,000 jobs out of a total of 12,500 - a move which comes at a challenging time for Italy, which has just fallen back into recession for the third time in as many years, and where un-employment is at its highest level since the 1970s.
But the airline could not have found a bet-ter partner, according to Attwood, some-thing that chairman, Roberto Colannino was keenly aware of when he started courting air-
lines from the Gulf as part of his ‘dream’ of rescuing Alitalia.
Etihad’s investment will bring both cash and experience to the table - not to mention the Etihad Equity Alliance, an existing net-work of 700 aircraft, 400 desti-nations and 110 million custom-ers worldwide, linked through the airline’s series of stakes in seven airlines, including airberlin, Germany’s second biggest carri-er, Irish airline Aer Lingus, India’s
Continued on page 4
Read by thousands of aviation professionals and technical decision-makers every week www.avitrader.com
WORLD NEWS
Etihad’s ‘litmus test’ begins for Alitalia 2017 turnaroundTroubled Italian carrier to benefit from global network of eight partner airlinesAs the dust settles around Eti-had’s decision to go ahead with its proposed 49% investment in Alitalia, Italy’s beleaguered carri-er, industry observers have begun to evaluate the risks and rewards that lie ahead for the new part-nership, with Etihad pledging to return the Italian airline to profit by 2017.
Etihad has agreed to pay €560m for its stake, which will make it the largest shareholder among a group of mostly Italian stakehold-ers, including UniCredit and In-tesa Sanpaolo, Italy’s two biggest lenders, as well as Franco-Dutch airline Air France-KLM, which pre-viously held 25% but has seen its investment diluted to 7%.
In total, the deal is worth €1.758bn, including up to €598m of finan-cial restructuring to be provided by lenders and shareholders. But Etihad could invest up to €1.25bn in total over the next four years to achieve its goal, according to Ita-ly’s transport minister.
In its “riskiest”
investment to date, Etihad’s James Hogan (seated, third
from left) signs off on
its 49% stake in Italian flag carrier Alitalia
Etihad
WEEKLY AVIATION HEADLINES
ISSN 1718-7966 AUGUST 18, 2014 / VOL. 452
China Investment Corp (CIC) a sovereign wealth fund worth $653bn, is understood to be in talks to buy Avolon, the Dublin-based aircraft leasing company, for $4-5bn including debt, according to sources linked to the deal. CIC is working with Aviation Industry Corporation of China (AVIC), the state-owned aerospace firm, in its bid for Avolon, in a move to capitalise on strong demand for aircraft assets from Asian buyers.
Chinese firms eye Avolon
Brazil’s World Cup winnerGol, the Brazilian low-cost carrier, came away a winner from the recent Fifa World Cup in Brazil, posting a 24.4% rise in second quarter revenues compared to the same period in 2013, as it flew a total of 3.4 million passen-gers around the country during the tournament, achieving record load factor levels which peaked at 81.2%. The airline reduced net losses to R$145m ($63m), down from losses of R$432m a year earlier, but operating costs rose 20.1% to R$2.34bn.
Taking on the national airline of Europe’s fourth biggest econo-my is no small feat. The airline, regarded as a source of “em-barrassment” by many Italians, according to Ed Attwood at Ara-bian Business, is understood to have posted a net loss of €569m
London airports’ record JulyLondon’s Heathrow and Gatwick airports both posted record pas-senger traffic in July as Britons set off for their summer holidays. Heathrow said 6.97m passengers passed through its doors during the month, representing its busi-est-ever month, while a record 240,000 people travelled through on July 27th - its busiest-ever day. Gatwick posted a 6% rise in pas-senger numbers in July to 4.1m, due in part to a rise in business travel but also sparked by the launch of Norwegian Air Shuttle’s low-cost flights to the US.
in 2013, more than double its net loss in 2012. It has been more than a decade since it last posted a profit - which it has only achieved a handful of times over its 68-year history.
The job of turning Alitalia around will not be easy, according to Saj Ahmad, chief analyst at Strategic Aero Research, who said it was Etihad’s “riskiest” investment yet, due to the “ground-up” problems the carrier brings with it.
Alitalia’s workforce is set to be
“Overnight, the financial position of Alitalia will change. But there’s no quick fix. We have a three year plan to bring Alitalia back to profit by 2017.” James Hogan, CEO, Etihad
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Air Lease Corporation places two new Boeing 777-300ERs with KLM
Air Lease Corporation announced long term lease agreements with KLM (The Netherlands) for two additional new Boeing 777-300ER aircraft, scheduled for delivery in the second half of 2016 and early 2017. These aircraft placements are in addition to the two new 777-300ER aircraft scheduled for lease from ALC to KLM in early 2015 and early 2016, all from ALC’s order book.
Airstream arranges lease of one DHC-8-Q300
Airstream International Group arranged, on behalf of a large US based Lessor, the dry lease of one DHC-8-Q300, MSN557 (8Q-IAK), to Island Aviation Services of the Maldives. MSN557 was previously owned and operated by Caribbean Airlines before being purchased by the lessor in 2013 as part of a five aircraft package, a transaction that was also arranged by Airstream. 8Q-IAK is the third aircraft Air-stream has placed with the airline.
AWAS delivers second of four planned new passenger aircraft to Lion Air
AWAS delivered a second aircraft, one 737-800, as part of a four aircraft sale and leaseback deal with PT Lion Mentari Airlines (Lion Air) for three 737-800s and one Airbus A320. These new aircraft were purchased directly by the airline from their respective manufacturers. AWAS is providing a financ-ing solution for all four aircraft and then placing them on long-term leases with Lion. This second 737-800 will be assigned to and operated by Lion’s Indonesian full service subsidiary Batik Air.
As the European launch customer of the next-generation Airbus A350 XWB (extra wide body) aircraft, Finnair has completed the cabin design of its new flagship long-haul product due to enter service next year. Created by top Helsinki firm dSign Vertti Kivi & Co, also the designer of Finnair’s new Premium Lounge at Helsinki Airport, the A350’s bright and spacious cabin features large panoramic view windows and com-fortable seating arrangements in both classes. The 297-seat configuration includes 46 seats in Business Class in a 1+2+1 layout, en-suring direct aisle ac-cess to all Business Class passengers. The Zodiac Cirrus III seats convert to fully flat beds, while a 16-inch touch-screen inflight entertainment system comes programmed with films, TV shows, music and other digital content on demand in numerous languages. Seats in Business Class also come equipped with AC and USB power outlets. The Economy Class cabin features comfortable Zodiac Z300 slim-line seats with a 31-inch seat pitch in a 3+3+3 layout. At the front of the Economy Class cabin are 43 Economy Comfort seats, with comfier headrests, high-quality headphones and four extra inches of leg room. All seats in Economy include an 11-inch touch screen inflight entertainment system and USB power outlets. Finnair plans to begin operating its first A350s in the second half of next year, initially serving Shanghai, Bangkok and Beijing, with Hong Kong and Singapore A350 service to be added in 2016. Finnair has 11 firm orders and 8 options for A350 aircraft, which will form the backbone of the compa-ny’s long-haul fleet and drive expansion plans.
Finnair reveals cabin design for next-generation Airbus A350 XWB aircraft
How Finnair’s business class cabin will look on its new Airbus A350 fleet Finnair
Surf Air places order for largest Pila-tus PC-12 fleet with 65 new aircraft
Surf Air announced a total order of up to 65 new Pilatus aircraft (15 firm orders and 50 options) to be delivered over the next five years, with a total order value of ap-proximately $312m. The first 15 aircraft are being financed by a $65m senior facility
from White Oak Global Advisors, alongside an additional $8m equity round from new and existing investors, bringing the total equity raised to $17m. With this order the company has formed an unprecedented exclusive partnership with Pilatus Aircraft whereby Surf Air will be the only member-ship-based operator to utilize the PC-12 NG in the United States.
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Jet Airways, Virgin Australia, Air Seychelles, Air Serbia and Swiss regional carrier Darwin Airline, recently rebranded as Etihad Regional.
As part of the larger group, Alitalia is also set to benefit from the network’s economies of scale, which will cut costs in areas such as maintenance, catering - and, significantly - fuel.
Etihad’s 49% stake in Alitalia is the Abu Dhabi carrier’s most significant investment to date - the carrier is the national airline of the world’s ninth biggest economy. Attwood noted that while Italy boasts a range of globally important firms like Finmeccanica and Ferrari, its flag carrier has no direct flights to key emerging markets like China or India. Add to that the fact that Italy is the fifth most important tourist destination in the world - and the potential for Etihad is clearly there, he said.
James Hogan, Etihad’s CEO, praised Alitalia as a strong local brand, but said the airline’s image was “very dated”, and confirmed that Etihad has been working with its new Ital-ian partners to design new livery and uniforms and refresh its service approach. Plans are also in place to renew Alitalia’s fleet, with a view to increasing its existing wide-body fleet of 22 aircraft by 32% and adding profitable new routes.
Hogan warned that although the financial position of Altalia will change “overnight”, there will be “no quick fix”. He said that Etihad has a three-year plan to bring Alitalia back to profit by 2017. The plan includes the opening up of 10 new long-haul routes over the course of the next five years, in addition to flights to Abu Dhabi from “second-ary” Italian cities like Venice, Catania and Bologna. The carrier’s cargo unit will also be relaunched and expanded.
Strategic Aero Research’s Ahmad told Arabian Business that “turning around Alitalia will mean winning over management and politicians that have been reluctant to cull waste and jobs - if Etihad can do that, they’ll have broken down a major structural bar-rier,” But the “real litmus test”, he added, is how quickly losses can be turned around.
4AviTrader WEEKLY AVIATION HEADLINES
Continued from page 1
Meggitt wins Boeing 737 MAX en-gine and APU fire protection
Meggitt Safety Systems was awarded a con-tract by The Boeing Company to design, develop, manufacture and support the fire protection system for the 737 MAX engine and APU. The contract comprises the control computer, engine and APU fire detectors and the engine and APU fire suppression bottles. This contract demonstrates the opportunity to provide full Chapter ATA 26 system offer-ings enabled by the combined capabilities of the merged Meggitt Safety Systems and Pa-cific Scientific.
AAR to distribute Eaton’s fluid-dis-tribution products
Power management company Eaton has appointed AAR as the exclusive distributor for aircraft fluid-distribution products, oil debris-monitoring technology, engine seals and other products for commercial airlines. The new, 10-year agreement, which goes into effect October 8th, will strengthen airline service and support by providing operators with a comprehensive inventory
MRO & PRODUCTION
SAA Technical (SOC) Limited (Reg. No 1999/024058/30)
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of highly reliable products manufactured by Eaton for a wide array of commercial aircraft. “This new agreement with Eaton expands our relationship from military and defense into the commercial parts market and reinforces AAR’s ability to provide effi-cient and cost-effective solutions for Eaton’s aftermarket,” said John Holmes, Aviation Services Group vice president – Aviation Supply Chain for AAR.
Summit Air of Canada signs JetSpares contract with BAE Systems
Summit Air of Yellowknife, Northwest Ter-ritories, Canada signed a two-year JetSpares rate-per-flying-hour (RPFH) spares contract with BAE Systems Regional Aircraft to sup-port its newly acquired fleet of two 90-seat Avro RJ85 regional jetliners. To support the growing market interest for the Avro RJ in Canada, BAE Systems Regional Aircraft has worked closely with Transport Canada Civil Aviation (TCCA) to obtain Canadian Type Certification for both the Avro RJ85 and the bigger RJ100. Summit Air is the latest Canadian operator to acquire the Avro RJ, and following delivery of the first aircraft in September will commence FIFO (Fly-in; Fly-out) operations in partnership with First Air and Det’on Cho Logistics on behalf of Diavik Diamond Mine to airlift employees to and from Edmonton to the remote mine which is situated 300 kilometres north of Yellowknife and with air only year-round access.
Airbus choses AIDC as new supplier for best-selling A320 Family
Aerospace Industrial Development Corpo-ration (AIDC) in Taiwan has become a new tier-one supplier for Airbus. Under the agree-ment, which followed a thorough evaluation process, AIDC will produce composite pan-els for A320 Family aircraft aft belly fairings. The contract was signed by François Mery, Airbus senior vice president Aerostructure, Procurement and Tony Liou, AIDC senior vice president.
Héroux-Devtek signs new contract with Boeing to fabricate torque tubes for 787 Dreamliner
Héroux-Devtek was awarded a multi-year contract to manufacture torque tubes for
Marshall Aerospace and Defence Group chooses Abbotsford as North American office hub
Marshall Aerospace Canada, part of Marshall Aerospace and Defence Group, has increased its in-country presence and strengthened its commitment to focused new business development in North America, with the purchase of a 4,343 ft² building at Abbotsford Airport in British Columbia. The building will become Marshall’s Canadian head office, out of which the company’s comprehensive Air, Land and Sea engineer-ing and maintenance capabilities will oper-ate to serve current and future military and civil contracts and custom-ers. The Abbotsford base will also act as Marshall’s base for stra-tegic growth in Canada and North America. The new office in Abbots-ford can accommodate up to 35 personnel, the majority of which will be engineers and tech-nical staff. This office will further consolidate Marshall Aerospace Canada as an integral part of Marshall’s United Kingdom global operations, where Marshall is a Design Authority for a number of platforms, and has fully approved procedures and practices in place that allow the company to undertake and certify OEM-type work on a variety of components, systems and structures. Currently, Mar-shall supports more than 10 air forces around the world.
Local dignitaries celebrate the launch of Marshall Aerospace Canada’s new head office in Abbotsford, Canada Marshall Aerospace
New collaboration between flydubai and JorAMCo
flydubai selected JorAMCo to provide the EIS (Entry Into Service) check for seven of their new Next-Generation Boeing 737-800 aircraft. The aircraft will depart from the Boeing Company’s Renton factory in Washington for Amman where they will be fitted with seats and inflight entertainment before being flown to Dubai to enter flydubai’s fleet.
JorAMCo
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Embraer Executive Jets expands service network into Brazil’s Northeast
Embraer Executive Jets is expanding its customer support and service network into the Brazilian Northeast. AeroMecânica, located at Coroa do Avião airfield, in Igarassu, metropolitan Recife, will be the first Authorized Service Center for line main-tenance, scheduled inspections, and remote services for Phe-nom 100 and Phenom 300 jets, in the region. Customers in the region already have the support of a co-located Embraer field service engineer.
The Brazilian Civil Aviation Agency (Agência Nacional de Avi-ação Civil – ANAC) granted type certification for the Legacy 500 executive jet during a ceremony at the Latin American Business Avia-tion Conference and Exhibition (LA-BACE), in São Paulo, Brazil. Embraer expects to receive certification from the FAA (Federal Aviation Adminis-tration) in the upcoming weeks and certification by EASA (European Avi-ation Safety Agency) thereafter. The flight test program comprised four prototype aircraft, which have car-ried out extensive function and reli-ability testing. The Legacy 500 test fleet completed over 1,800 flight hours. Over 20,000 hours of tests were conducted in laboratories with
rigs for aircraft avionics, electrical, hydraulic, and environmental systems. Production of the Legacy 500 has already begun and the first delivery is scheduled for September. Up to six aircraft will be produced in 2014, and production of the Legacy 500 will increase throughout 2015.
Embraer Executive Jets opens new facilities at its Con-tact Center
Embraer Executive Jets opened new facilities at its Contact Center, this month, to provide operational, technical and main-tenance support for the global fleet of business jets. The facility expansion takes place five years after the center began its oper-ations in 2009. During this time, the fleet of Embraer executive jets has quintupled in size. There are currently more than 780 Embraer Executive Jets aircraft in operation in over 50 coun-tries, and they are supported by the Contact Center 24 hours a
day, 365 days a year. “Invest-ing in support and services for full customer satisfaction has been one of our competitive advantages, which is prov-en by product support sur-veys conducted by the trade press,” said Edson Carlos Mal-laco, Vice President Customer Support and Services, Embraer Executive Jets. “Our Contact Center is staffed by experi-enced professionals who are qualified to provide services for different levels of events.”
6AviTrader WEEKLY AVIATION HEADLINES
EMBRAER NEWS
the Boeing 787 Dreamliner. Under the terms of the agreement, which represents new business for Héroux-Devtek, shipments are scheduled to begin in early calendar year 2015. The manufacturing of these compo-nents will be carried out at the Corpora-
tion’s Laval, Quebec facility. Production of the 787 will increase from the current rate of 10 airplanes per month to 12 in 2016 and to 14 by the end of the decade. As of July 31, 2014, the backlog for the 787 stood at 869 aircraft.
ST Engineering’s Aerospace arm secures wide-body VIP completion contract
Singapore Technologies Aerospace’s (ST Aerospace) VIP completions brand ‘AERIA Luxury Interiors’ (AERIA) has secured a
DVB Group publishes half-yearly fi-nancial report for 2014
During the first half of 2014, the perform-ance of DVB Bank SE in providing financing solutions and advisory services to its clients in the international transport sector was lower than in the same period of the previ-ous year. Consolidated net income before taxes was down 37.7%, to €41.4m (H1 2013: €66.4m). At €105.0m, net interest income decreased by 9.6% year-on-year (H1 2013: €116.2m). Income from the lend-ing business was down 1.6%, to €381.1m (H1 2013: €387.3m). DVB originated 78 new Transport Finance transactions in the period, with an aggregate volume of €2.2bn (H1 2013: 71 new transactions with a total volume of €1.8bn). Interest income from finance leases totalled €8.2m (H1 2013: €12.7m), whilst current income from operating leases decreased 40.1%, to €41.1m (H1 2013: €68.6m). Given the rea-sons set out above, total interest income thus declined by 7.9%, from €471.9m to €434.7m. Interest expenses also fell, by 7.3%, to €329.7m (H1 2013: €355.7m), given the massive additional liquidity sup-ply on the capital markets and the result-ing lower funding costs. However, this ef-fect did not offset the decline in interest income. Consolidated net income before taxes reduced by 37.7%, to €41.4m (H1 2013: €66.4m). Consolidated net income after taxes was down 45.3%, to €31.7m (H1 2013: €57.9m).
AeroCentury reports second quarter 2014 results
AeroCentury, an independent aircraft leasing company, reported its operating results for the second quarter ended June 30, 2014. The Company reported a net loss of $3.9m for the second quarter of 2014, compared to net income of $1.3m for the second quarter of 2013. The Company reported a net loss of $3.6m for the first six months of 2014, com-pared to net income of $5.2m for the first six months of 2013. Total revenues were $7.9m and $15.9 for the second quarter and six months ended June 30th, 2014, respectively, compared to total revenues of $7.9m and $20.0m, respectively, for the same periods a year ago.
Mesa Air Group completes $30m working capital draw loan
Mesa Air Group closed on a $30m working capital draw loan through Tennenbaum Capi-tal Partners. The funds are available for up to two years and have a five year term. The funds will be used to support current aircraft purchases and growth-related expenses as well as anticipated future growth opportu-nities. In the past sixteen months Mesa has added 19 CRJ 900 aircraft to be operated for
FINANCIAL NEWS
Hong Kong Aircraft Engineering Company (HAECO) reports 2014 inter-im results
The HAECO Group reported an attributable profit of HK$283m for the first six months of 2014. This compares with a profit of HK$359m for the equivalent period in 2013. Earnings per share decreased by 21.2% to HK$1.70. Turnover increased by 65.6% to HK$5,337m, with the acquisition of TIMCO ac-counting for 61.8% of the in-crease. The Group continued to invest in order to expand its fa-cilities and technical capabilities and to improve and widen the range of services it can offer to customers. Total capi-tal expenditure during the first half of 2014 was HK$3,259 m (including expenditure on the acquisition of TIMCO of HK$2,942m). Capital expenditure committed at the end of June was HK$997m.
HAECO
American Airlines and 6 Embraer 175 aircraft to be operated for United Airlines with an ad-ditional 24 Embraer 175 aircraft being deliv-ered over the next 24 months.
AerCap Holdings N.V. reports second quarter financial results
AerCap Holdings N.V. announced that its adjusted net income was $212.4m for the second quarter of 2014. Adjusted earnings per share were $1.29 for the second quar-ter of 2014, an increase of 118% over the second quarter of 2013. On May 14, 2014, AerCap completed the acquisition of Inter-national Lease Finance Corporation (“ILFC”) from American International Group (“AIG”). The results of ILFC have been consolidated in AerCap Holdings N.V.’s income statement and cash flow statement for the second quarter as of May 14th, 2014, the comple-tion date. As of June 30th, 2014, AerCap had committed to purchase 350 aircraft with scheduled delivery dates up to 2022. Over 90% of its committed aircraft purchases de-livering 2014 through December 2016 and approximately 50% of its committed aircraft purchases delivering 2014 through 2022 are placed, either under lease contract or a let-ter of intent. AerCap executed 122 aircraft transactions during the second quarter of
nose-to-tail cabin completion contract for a wide-body VIP aircraft, from an undisclosed customer. This follows shortly after clinching a green aircraft completion deal for a VIP 737 BBJ in February this year. The aircraft interior will be elegantly designed by AER-IA’s own cabin design team. The wide-body aircraft will have a lifestyle-oriented floor plan personalised to the customer’s tastes and expectations, and outfitted with the finest materials and furnishing. he aircraft is scheduled to arrive in AERIA’s remodelled hangar for cabin completion in the third quarter of 2014, with redelivery planned in the fourth quarter of 2016.
• Component Control released new timesaving features for StockMarket.aero, its searchable online eMarketplace for aviation parts and services. Users can now send an RFQ to multiple vendors at one time with just a few clicks of a mouse, and directly from the “Parts Wanted Broadcast” message screen. A new option allows users to easily limit searches to just inventory or capabili-ties to more quickly find what they need. Broadcast messages have been ex-panded to include a new type — Aircraft and Engines for Lease/Sale, allowing vendors to reach a large market faster. Component Control also announced that the popular online aviation marketplace recently reached 60 million stock lines, retaining its title as the world’s largest open marketplace for aircraft parts and maintenance, repair and overhaul (MRO) capabilities. The online network is utilized by airlines, parts traders, OEM/PMA equipment manufacturers, military and defense organizations, and commercial and general aviation businesses to quickly locate, buy and sell aviation parts and services.
• Volartec announced Island Transvoyager (ITI Air) to be the launch customer in South East Asia. With the latest ATR 42-500 addition to the fleet, ITI sought a suitable Maintenance Management System to manage its expanding fleet. The first ATR 42 will be added to Alkym Management and Control System for Aircraft Maintenance as part of the implementation project which is currently under way. With the project team onsite at ITI this month they will have the first aircraft loaded and Alkym in a Live operating envi-ronment by the end of August.
8AviTrader WEEKLY AVIATION HEADLINES
The Philippines’ ITI Air will be Volartec’s South East Asian launch customer ITI Air
2014. Targeted aircraft sales of ~$1bn per year on average are ahead of plan: ~$2bn complet-ed since the ILFC transaction announcement in December 2013. 90% of the ILFC aircraft have been transferred to AerCap’s existing opera-tions in Ireland. Available liquidity of $6.5bn as of June 30th, 2014. Since the announcement of the transaction $7bn of funding has been raised: unsecured revolver, term loan and ILFC acquisition related take-out financing.
INFORMATION TECHNOLOGY
MILITARY & DEFENSE
Sikorsky, Boeing selected to build Tech-nology Demonstrator for future verti-cal lift
Sikorsky Aircraft and Boeing were selected to build a helicopter for the U.S. Army’s Joint Multi-Role Technology Demonstrator Phase 1 program (JMR TD), paving the way for the next genera-tion of vertical lift aircraft. The U.S. Army Avia-tion Technology Directorate (AATD) selected the Sikorsky-Boeing team to continue the develop-ment of the SB>1 Defiant, a medium-lift heli-copter configured to Sikorsky’s X2 coaxial design, through flight testing. First flight for the program is expected in 2017. The Defiant aircraft will fea-ture counter-rotating rigid main rotor blades for vertical and forward flight, a pusher propeller for high-speed acceleration and deceleration and an advanced fly-by-wire flight control system.
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Situated at OR Tambo International Airport Republic of South Africa
Airbus A350 XWB completes Route Proving World Tour
The Airbus A350-900 successfully complet-ed a series of Route Proving trials, receiv-ing an enthusiastic welcome at each of the 14 cities it has visited over the past three weeks. At the technical Route Proving the aircraft must demonstrate its readiness for airline operations on a global scale. This last series of trials is required for Type Certifica-tion, which is expected in Q3 this year. The A350 XWB completed its Route Proving af-ter landing in Toulouse, France on August 13th coming from Helsinki, Finland. The ex-ercise took the flight test aircraft, MSN 005, across the globe on an impressive 20-day trip flying over the North Pole, each ocean and stopping at 14 major international air-ports world-wide. During its World Tour, the aircraft flew approximately 81,700 nm /151,300 km in some 180 flight hours, with all flights performing on schedule. The air-craft was operated by Airbus flight crews as well as Qatar flight crews on the route from Doha to Perth, Moscow and Helsinki. The Airworthiness Authority pilots from the European Aviation Safety Agency also par-ticipated and flew the aircraft on two legs.
• Effective on August 1st 2014, Karl Ulrich Garnadt, the member of the Executive Board of Deutsche Lufthansa Aktiengesellschaft and CEO of Lufthansa German Airlines succeeded Stefan Lauer, to be the vice-chairman of Ameco Beijing. Garnadt began his career at Lufthansa in 1979. In 2011 he became CEO and chairman of Lufthansa Cargo AG. Since May 1st, 2014, he has been a member of the Executive Board of Deutsche Lufthansa AG and CEO of Lufthansa German Airlines.
• Nordic Aviation Capital, the world’s largest regional aircraft leasing company, is bolstering its presence in the Asia Pacific region with the appointment of Bill Rossi as VP Sales and Acquisitions based out of its Singapore office. Rossi joins NAC from Embraer Aircraft where for the past five and a half years he worked as sales director Asia Pacific.
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A major highlight was the trip from Johannesburg Tambo International Airport, located at 5,558 feet (1,694m) above sea level, to Sydney, demonstrating the A350’s excellent perform-ance at high altitude airports. The flights from Johannesburg to Sydney and Auckland to Santiago de Chile demonstrated also its capability to fly ultra-long-haul routes or Extended
range Twin Operations (ETOPS). The technical Route Proving commenced on July 24th in Toulouse/France and comprised the following destinations: Frankfurt, Singapore and Hong-Kong. On the third trip, the aircraft visited Johannesburg, Sydney, followed by Auckland, Santiago de Chile and Sao Paulo. The fourth and final journey included Perth followed by Doha, Moscow and Helsinki.
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The Airbus A350 XWB-900 (above) completes its Route Proving World Tour Airbus