Read by thousands of aviaon professionals and technical decision-makers every week www.avitrader.com WEEKLYAVIATIONHEADLINES Connued on page 3 Alaska Air Group, Inc. parent com- pany of Alaska Airlines, and Virgin America recently announced that each carrier has received a request for addional informaon from the Antrust Division of the United States Department of Jusce (DOJ) in con- necon with Alaska’s proposed acquision of Virgin America. Alaska and Virgin America have been cooperang fully with regulators since the announcement of the proposed acquision. A “Second Request,” which is a standard part of the DOJ review process, extends the period that the pares must wait to close the transacon, un- l 30 days aſter Alaska and Virgin America have complied with the informaon request (or the waing period is otherwise terminated by the DOJ). Alaska and Virgin America will be responding promptly. The two air- lines are confident that they will obtain regulatory approval and complete their pro-compeve and pro-consumer transacon no later than January 1, 2017. The proposed acquision is also subject to approval of Virgin Amer- ica’s shareholders in addion to the sasfacon of other customary closing condions, including expira- on or terminaon of the waing period under the Hart-Sco-Rodino Act. Some analysts see Alaska Air’s de- cision to acquire Virgin as a move to build up its pres- ence on the West Coast, plus probably a defensive strategic move. Another industry analyst finds that Vir- gin’s transconnental routes do not really match with Alaska’s network. “It doesn’t really fit their structure to fly San Francisco-New York. Does Alaska have to play there at all? It is a cut-throat market,” he comments. Nong that there is no overlap in “Joining forces with Alaska Airlines will ensure that our mission lives on.” David Cush, Virgin America president and CEO WORLD NEWS Some analysts see lile scope for cost savings in the merger. Photo: Virgin America ISSN 1718-7966 MAY 23, 2016/ VOL. 541 Virgin territory Alaska Air builds West Coast presence Tragedy strikes at Egyptair An Egyptair A320 went down into the Mediterranean Sea just 20-min- utes from arrival in Cairo aſter a flight from Paris on May 19. It’s be- lieved the Airbus swerved several mes before it went down. There were 66 passengers and crew on board. The invesgaon is ongoing. Brish Airways announces new services to Sanago, Chile Brish Airways is launching the only direct flight between London and Sanago in Chile from January 3, 2017. Sanago will become the air - line’s lengthiest long-haul route, tak- ing 14 hours 40 minutes, nearly an hour more than the current longest flight of 13 hours 50 minutes service to Buenos Aires. The four-a-week flight will be served by the airline’s newest aircraſt, the four-cabin Boe- ing 787-9 Dreamliner, complete with a new First cabin. Sanago will be the latest desnaon in Lan America to join Brish Airways’ route network. The airline recently launched new services to San Jose in Costa Rica and Lima in Peru. In addion, it also op- erates flight to Rio and Sao Paulo in Brazil and Buenos Aires in Argenna. SITA deploys baggage robot Passengers arriving at Geneva Air - port in the past week or so have received help with their bag drop from Leo, an innovave baggage robot developed by air transport IT provider SITA, which is being trailed outside the airport’s Terminal 1. Leo is a fully autonomous, self-propel- ling baggage robot that has the ca- pacity to check in, print bag tags and transport up to two suitcases with a maximum weight of 32kg. It also has an obstacle avoidance capability and can navigate in a high-traffic en- vironment such as an airport.
13
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Read by thousands of aviation professionals and technical decision-makers every week www.avitrader.com
WEEKLY AVIATION HEADLINES
Continued on page 3
Alaska Air Group, Inc. parent com-pany of Alaska Airlines, and Virgin America recently announced that each carrier has received a request for additional information from the Antitrust Division of the United States Department of Justice (DOJ) in con-nection with Alaska’s proposed acquisition of Virgin America.
Alaska and Virgin America have been cooperating fully with regulators since the announcement of the proposed acquisition. A “Second Request,” which is a standard part of the DOJ review process, extends the period that the parties must wait to close the transaction, un-til 30 days after Alaska and Virgin America have complied with the information request (or the waiting
period is otherwise terminated by the DOJ).
Alaska and Virgin America will be responding promptly. The two air-lines are confident that they will
obtain regulatory approval and complete their pro-competitive and pro-consumer transaction no later than January 1, 2017.
The proposed acquisition is also subject to approval of Virgin Amer-ica’s shareholders in addition to the satisfaction of other customary closing conditions, including expira-
tion or termination of the waiting period under the Hart-Scott-Rodino Act.
Some analysts see Alaska Air’s de-cision to acquire Virgin as a move
to build up its pres-ence on the West Coast, plus probably a defensive strategic move.
Another industry analyst finds that Vir-
gin’s transcontinental routes do not really match with Alaska’s network. “It doesn’t really fit their structure to fly San Francisco-New York. Does Alaska have to play there at all? It is a cut-throat market,” he comments.
Noting that there is no overlap in
“Joining forces with Alaska Airlines will ensure that our mission lives on.”David Cush, Virgin America president and CEO
WORLD NEWS
Some analysts see
little scope for cost
savings in the merger.
Photo: Virgin America
ISSN 1718-7966 MAY 23, 2016/ VOL. 541
Virgin territory Alaska Air builds West Coast presence
Tragedy strikes at Egyptair An Egyptair A320 went down into the Mediterranean Sea just 20-min-utes from arrival in Cairo after a flight from Paris on May 19. It’s be-lieved the Airbus swerved several times before it went down. There were 66 passengers and crew on board. The investigation is ongoing.
British Airways announces new services to Santiago, ChileBritish Airways is launching the only direct flight between London and Santiago in Chile from January 3, 2017. Santiago will become the air-line’s lengthiest long-haul route, tak-ing 14 hours 40 minutes, nearly an hour more than the current longest flight of 13 hours 50 minutes service to Buenos Aires. The four-a-week flight will be served by the airline’s newest aircraft, the four-cabin Boe-ing 787-9 Dreamliner, complete with a new First cabin. Santiago will be the latest destination in Latin America to join British Airways’ route network. The airline recently launched new services to San Jose in Costa Rica and Lima in Peru. In addition, it also op-erates flight to Rio and Sao Paulo in Brazil and Buenos Aires in Argentina.
SITA deploys baggage robotPassengers arriving at Geneva Air-port in the past week or so have received help with their bag drop from Leo, an innovative baggage robot developed by air transport IT provider SITA, which is being trailed outside the airport’s Terminal 1. Leo is a fully autonomous, self-propel-ling baggage robot that has the ca-pacity to check in, print bag tags and transport up to two suitcases with a maximum weight of 32kg. It also has an obstacle avoidance capability and can navigate in a high-traffic en-vironment such as an airport.
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Air Lease Corporation leases two new Boeing 787-9 aircraft to Oman Air
Air Lease Corporation (AL) has reported the placement of two new Boeing 787-9s on long-term lease to Oman Air. The aircraft are scheduled to deliver in 2018 and 2020, both from ALC’s order book with Boeing. This new agreement follows Oman Air’s August 2015 announcement of lease agreements covering 14 additional jet aircraft from ALC, including three new Boeing 737-800s, seven new Boeing 737-8MAXs, one new Boeing 787-9, one usedBoeing 737-700, and two used Boeing 737-800aircraft.
SMBC Aviation Capital orders additional CFM LEAP-1A engines
SMBC Aviation Capital, the world’s third-larg-est aircraft leasing company, has ordered ten CFM International LEAP-1A engines to power five additional Airbus A320neo aircraft. The engine order is valued at US$140m at list
AIRCRAFT & ENGINE NEWS
routes nor fleet commonality, he sees little scope for cost savings in the marriage, con-cluding that it is all about market positioning for Alaska Air.
An airline merger is a lengthy process that typically takes years – not months – to com-plete. The transaction itself is subject to ap-proval by regulators, Virgin America share-holders and other conditions – a process that typically takes upwards of six months or more. Beyond that, the process to merge the two airlines into a single carrier typically takes an additional 1-2 years.
David Cush, Virgin America president and CEO said, “Our mission has always been to create an airline that people love – and we accom-plished that while changing the industry for the better. Joining forces with Alaska Airlines
will ensure that our mission lives on, and that the stronger, combined company will continue
to be a great place to work and an airline that focuses on an outstanding travel experience.”
...continued from page 1
Alsaka will be looking to build its presence on the West Coast Photo: Boeing
PEMCO redelivers 15th converted aircraft to SF Airlines
Cargo conversion company, PEMCO World Air Services (PEMCO), has redelivered another B737-300 freighter aircraft (MSN 28972) to China-based SF Airlines, the air cargo division of SF Express. SF Airlines is a leading courier in China providing delivery service to over 15 countries, including the United States. Performed by partner STAECO in Jinan Shandong, China, the latest redelivery marks the fifteenth B737-300/400 PEMCO converted aircraft to SF Airlines since 2013. Four more PEMCO converted aircraft are planned to be added to SF Airlines’ cargo fleet in 2016. PEMCO’s latest 737-300 freighter conversion for SF Airlines provides nine pallet positions, up to 43,100 pounds of payload, 4,600 cubic feet of total volume, and a maximum range exceeding 2,000 miles. Today PEMCO, together with its three regional conversion installation partners, provides seamless global product support to operators of their Boeing 737 converted freighters.
PEMCO redelivers another B737-300 freighter aircraft to SF Airlines Photo: PEMCO
price. This is a follow-on to SMBC Aviation Capital’s initial LEAP-1A order for 60 engines that the company announced at the Paris Air Show in June 2015 and the aircraft are part of a 2014 Airbus order. A long-time CFM cus-tomer, Dublin-based SMBC Aviation Capital, currently has a fleet of more than 350 aircraft powered by CFM56 and LEAP engines in ser-vice or on order.
Finnair secures financing for newest A350 aircraft
Finnair has secured financing, arranged by BNP Paribas, for its fifth Airbus A350-900 XWB, which was delivered on April 29, 2016. The transaction amounts to approximately €128m (US$143m), implemented using a Japa-nese Operating Lease with Call Option (JOLCO) structure. “This transaction represents yet another successful A350-900 financing for Finnair, and the third we have done using this structure. We are thrilled that financiers and investors are enthusiastic about the A350 as a long-term investment, since this aircraft type is the base from which we will continue to ex-ecute our growth strategy in Asia,” stated Fin-nair CFO Pekka Vähähyyppä.
American Airlines receives its first U.S.-produced Airbus aircraft
The first delivery of an A321 aircraft from the Airbus U.S. Manufacturing Facility to American Airlines took place on May 17, in Mobile, Ala-bama. On hand for the occasion were execu-tives from Airbus and American Airlines, and representatives of the more than 350 employ-ees at the facility. Airbus anticipates delivering four aircraft per month from the Mobile plant by the end of 2017. The initial deliveries will all be A320 Family aircraft with the Current Engine Option (CEO), but will begin transition-ing to New Engine Option (NEO) derivatives in late 2017.
AIRCRAFT & ENGINE NEWS
China Airlines takes delivery of first co-branded 777
Boeing and China Airlines celebrated the delivery of the world’s first co-branded 777 during a ceremony in Everett, marking the carrier’s 10th 777-300ER (Extended Range). “We are de-lighted to celebrate 100 years of Boeing by working together with Boeing to accomplish the first co-branded livery 777-300ER,” said Steve Chang, Vice President of Corporate Planning, China Airlines. “This is our 10th 777 from Boeing and since our first 777 entered into service in 2014, we have been exceedingly satisfied with its outstanding performance which was further affirmed by our happy passengers.” In 2004, China Airlines became the first airline to use Boe-ing’s co-branded livery on its latest 747-400. That airplane was nicknamed the ‘Blue Whale’ by the airline and was the first co-branded twin-aisle airplane in the world.
Boeing and China Airlines celebrate the delivery of the world’s first co-branded 777 Photo: Boeing
AviaAM Leasing delivers fourth Airbus A321 to Small Planet Airlines
AviaAM Leasing, a Warsaw Stock Exchange-listed global aviation holding company engaged in the business of commercial aircraft acquisition, leasing and sales, has delivered the fourth Airbus A321 to the European leisure carrier Small Planet Airlines. The delivered aircraft comes as the final one under the recently signed operating lease agreement between the carrier and AviaAM Leasing. The first three Airbus A321s were delivered to Small Planet Airlines in April, 2016. The delivery of all aircraft was conducted with the support of and financed by a leading provider and arranger of asset-based financing of commercial aircraft – PK AirFinance, a sub-sidiary of GE Capital Aviation Services.
Small Planet Airlines takes delivery of fourth A321 aircraft from AivaAM Leasing Photo: AviaAM Leasing
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Rockwell Collins’ FANS 1/A solution for Dassault Falcon 50EX aircraft now certified
Rockwell Collins’ Future Airspace Navigation Sys-tem (FANS) 1/A solution for Dassault Falcon 50EX aircraft that have been upgraded with Pro Line 21 avionics is now certified as part of a supplemen-tal type certificate held by Dassault Falcon Jet. The FANS 1/A solution is available from authorized Rockwell Collins dealers as an option with the Pro Line 4 to Pro Line 21 upgrade. With FANS 1/A, Fal-con 50EX aircraft operators will comply with regu-lations for operating over the North Atlantic and be able to access preferred wind-efficient transatlantic routes to save time and fuel. Rockwell Collins has already fielded several other FANS 1/A solutions for business aircraft, including the Challenger 604 and more than 300 new Pro Line Fusion-equipped Bombardier Global 5000 and Global 6000, and Gulfstream G280 aircraft. The company’s FANS 1/A solution is also part of Bombardier’s Pro Line 21 “Advanced” flight deck for new Challenger 350 and Challenger 650 aircraft, and aftermarket Chal-lenger 300 and Challenger 605 aircraft. Addition-ally, the company has announced that FANS 1/A will be available for Falcon 2000 operators with its Pro Line 4-to-21 flight deck upgrade.
CTT Systems receives Cair VIP order for two BBJ777-300s
CTT SYSTEMS, a leader of aircraft humidity control systems, has announced a Cair VIP System order from Jet Aviation Basel for two Boeing BBJ777-300 VIP completions. These awards are the 83rd and 84th Cair VIP orders for Airbus ACJs/Boeing BBJs. Cair humidification reduces dry air-related negative health and wellbeing impact on long-haul flights by maintaining the relative humidity on ground-like levels (i.e. the human body and its skin will not be subjected to rapid de-hydration that is otherwise the case in an extremely dry cabin.) The Cair humidification system generates a relative humidity of approx. 20%, compared to 3-5% without humidifiers. The higher humidityreduces dry air-related problems (e.g. fatigue, jet-lag, red eyes, dry skin, spread of viral diseases.)
GECAS’ Cargo Aircraft Group underway with first 737-800NG passenger-to-freight-er conversion
GE Capital Aviation Services (GECAS) has an-nounced that it is underway with its inaugural 737-800NG passenger-to-freighter conversion with Miami-based Aeronautical Engineers (AEI). GECAS announced the launch of its AEI passenger-to-freighter conversion program at the Paris Air Show in June 2015. A 1999 vintage 737-800 arrived in Miami on May 5. The aircraft had been operated
MRO & PRODUCTION NEWS
by Corendon Airlines in Turkey. Conversion and the subsequent certification process are scheduled to take approximately a year. This will be AEI’s first 737-800NG freighter conversion. The aircraft will be equipped with a rigid cargo barrier and have 12 main deck pallet positions, 11 full height contain-ers, plus a one-half width container. The aircraft has a maximum structural payload of 23,500 kg (51,800lb) and a maximum range of over 2,100 nautical miles. GECAS plans to convert up to 20 of its Boeing 737-800NG passenger aircraft to freight-ers with AEI. The conversions will be performed at authorized AEI conversion centers at facilities in the U.S. and Asia. GECAS is also the launch customer for Boeing’s 738BCF program, and a similar aircraft will be inducted into their program later this year.
FAA approves Embraer’s Sorocaba Service Center in Brazil
The U.S. Federal Aviation Administration (FAA) certified Embraer Executive Jets’ service center in Sorocaba, Brazil, on May 16, for maintenance of the company’s complete business jet portfolio. The approval followed the recent certification granted by the European Aviation Safety Agency (EASA). With certification from these important aviation authorities, in addition to the one al-ready conferred by Brazil’s ANAC agency, the So-rocaba service center is among a select group of maintenance and repair shops in Latin America
supporting Embraer’s business jets registered in Brazil and abroad. The 216,000-ft² Embraer facil-ity at Bertram Luiz Leupolz airport in Sorocaba near São Paulo offers a full range of services for the Phenom, Legacy and Lineage business jet families, as well as world-class accommodation and VIP lounges for passengers and crew, hangars and aircraft ground services for all types of busi-ness aircraft. Up to 40 jets can be serviced simul-taneously in the facility’s two hangars.
LORD Corporation signs Letter of Intent for MA700 aircraft
LORD Corporation, a leader in the management of vibration, noise and motion control, is in receipt of a signed letter of intent for design and produc-tion of the engine and APU vibration isolation systems for the MA700 aircraft. The agreement is with AVIS Xi’an Aircraft Industrial Corporation of the Aviation Industry Corporation of China, mak-ers of the Xian MA700, a twin-engine, medium-range turboprop airliner currently under develop-ment. LORD will design, develop, test, qualify and manufacture the components, as well as provide in-service support as part of this agreement. A longtime industry standard, LORD engine mounts and attachments have proven to lower risk and total cost. Using a damage tolerant approach, the Mount System is designed to manage the thrust, G and FBO/Windmilling loads of the engine while
British Airways’ Cardiff maintenance team welcomes first Dreamliner for planned maintenance
British Airways’ team of expert engineers at Cardiff has welcomed one of the air-line’s 16 Boeing 787 Dreamliner aircraft for the first time for planned mainte-nance. The aircraft recently arrived at Brit-ish Airways Maintenance Cardiff (BAMC), the airline’s long-haul aircraft heavy maintenance facility in South Wales, for a planned 12-day ‘B’ check, conducted every three years. The in-depth inspection was successfully completed by a specially trained team of engineers and included emergency evacuation slide checks, en-gine ground runs, and a top to bottom review of the cabins, which saw all of the seats removed and transported to Brit-ish Airways’ Interior Engineering (BAIE) in Blackwood for a full overhaul. Preparation for the aircraft started almost a year ago with dedicated 787 training programmes for BAMC experts including mechanics, technicians and safety specialists. The fa-cility now boasts more than 120 special-ists with specific training to work on the 787 aircraft fleet. Sixteen of the airline’s licensed aircraft engineers have successfully completed the intensive 45-day 787 course, al-lowing them to certify the maintenance work carried out at BAMC.
The first Dreamliner for scheduled maintenance arrives at British Airways Maintenance Cardiff Photo: British Airways
May 23, 2016 / Vol. 541
6
WEEKLY AVIATION HEADLINES
Singapore Airlines Group posts full year net profit of S$804m
Singapore Airlines Group reported a net profit of S$804m in the 2015-16 financial year, a S$436m improvement over the net profit re-corded in the last financial year (+118.5%). Group operating profit increased S$271m (+66.1%) year-on-year to S$681m. Dividends received from long-term investments were higher (+S$102m), while the Group’s share of losses of associated companies were reduced by S$118m. Group revenue was S$15,228m, down S$338m or 2.2% from last year, mainly attributable to lower passenger revenue at the parent airline company and lower cargo rev-enue, compensated in part by higher revenue from subsidiary airlines, and income earned upon the release of seven A350-900 delivery slots. Both passenger and cargo yields de-clined compared to last year. SIA Engineering’s operating profit of S$104m was S$20m higher compared to last year. (SG$1.00 = US$0.73 at time of publication.)
Elbit Systems reports first quarter 2016 results
Elbit Systems, the international high technol-ogy company, reported its consolidated re-sults for the quarter ended March 31, 2016. Revenues in the first quarter of 2016 were US$721.2m, as compared to US$706.6m in the first quarter of 2015. Non-GAAP gross profit amounted to US$220.1m (30.5% of revenues) in the first quarter of 2016, as compared to US$206.4m (29.2% of revenues) in the first quarter of 2015. GAAP gross profit in the first quarter of 2016 was US$212.2m (29.4% of rev-enues), as compared to US$201.2m (28.5% of revenues) in the first quarter of 2015. The im-provement in the gross profit rate was mainly due to a mix of products sold in the quarter and overall improvement of operations. Re-search and development expenses, net, were US$56.0m (7.8% of revenues) in the first quar-ter of 2016, as compared to US$55.6m (7.9% of revenues) in the first quarter of 2015.
FLY Leasing reports first quarter 2016 fi-nancial results
FLY is reporting net income for the first quar-ter of 2016 of US$7.1m, compared to net in-come of US$19.9m for the same period in 2015. The first quarter 2015 results include US$21.9m of end of lease revenue, whereas there was only US$3.2m of end of lease rev-enue in the first quarter of 2016. Adjusted net income was US$16.2mn for the first quar-
controlling the deflections and the envelope size and weight requirements. With easy installation and optimization of part count, LORD mounts in-crease passenger and crew comfort with reduc-tion of noise and vibration.
Flying Colours Corp. signs launch customer for INAIRVATION Global retrofit
Flying Colours Corp. has signed the first customer for INAIRVATION’s pre-engineered retro-fit cabin solution for Bombardier Global aircraft types. Flying Colours, which was named a North Ameri-can partner by the Austrian-based joint venture between Lufthansa Technik and F/LIST during NBAA 2015, is already working with the European partners on the design engineering for the cabin. The undisclosed client confirmed the order in late April. Work on the project has already begun. The aircraft induction at Flying Colours is scheduled for the fourth quarter of 2016, whilst re-delivery is anticipated to be in the first quarter of 2017. The launch customer has selected the baseline INAIRVATION package to blend with the new in-terior. The refit will incorporate the nice HD Cabin Management and Inflight Entertainment system (IFE/CMS) from Lufthansa Technik. The system’s functionality will be integrated into new ergo-nomic side-ledges which are pre-engineered and manufactured by F/LIST. These modules will be delivered and installed during the retrofit process, which will take place at the Flying Colours’ Peter-borough, Ontario headquarters.
Liebherr-Aerospace delivers first system to Hafei-Harbin Helicopters
Liebherr-Aerospace has delivered its first cooling system to the Chinese manufacturer Hafei-Harbin (AVIC Group) to equip the helicopter program AC312E. The cooling system, which is part of the air management system, was shipped from Lieb-herr-Aerospace Toulouse SAS, based in Toulouse (France), to Hafei-Harbin’s final assembly line in Harbin, in the North of China. Liebherr-Aerospace Toulouse SAS, Liebherr’s center of excellence for air management systems, had been selected by Hafei-Harbin in January 2016 to develop, manu-facture, qualify, certify and service the air man-agement system for the versions C and E of the modernized helicopter AC312 program.
INAIRVATION and Flying Colours Corp. an-nounce launch customer for unique retrofit
INAIRVATION, a provider of smart cabin upgrades and Flying Colours, a Peterborough/Ontario-headquartered company that provides heavy maintenance, completions, modifications, and
MRO & PRODUCTION NEWSretrofits for the business jet market, confirmed that they started work on their first joint cabin up-grade project, the retrofit of a Bombardier Global 5000 interior. The retrofit will include a complete nice® HD CMS/IFE system and newly developed ergonomic RH/LH side-ledges integrated with an advanced CMS User Interface (UI). INAIRVATION, a joint venture between Lufthansa Technik and F/LIST, will deliver these components as a pre-developed and pre-produced kit, for installation along with other interior finishes and upgrades provided by Flying Colours at their Peterborough facility during the tight timeframe of a heavy maintenance check.
Kaman receives MHI Canada Aerospace CL350 and Global 5000/6000 awards
Kaman Integrated Structures and Metallics (KISM) reported that their Mexico facility has been award-ed the production, manufacture, and supply of Bombardier Challenger CL350 and Global Express 5000/6000 metallic detail wing structure packages from MHI Canada Aerospace (MHICA), a group Company of Mitsubishi Heavy Industries. MHICA produces the CL350 and Global 5000/6000 wing assemblies for Bombardier at their Toronto, Can-ada manufacturing facility. All metallic detail parts and kits will be manufactured and delivered from Kaman’s KISM facility in Chihuahua, Mexico. Deliv-eries will begin this year and extend through 2020.
Qantas extends A380 support contract with Spairliners until 2025
Qantas Airways, the Australian flag carrier, has renewed its Integrated Component Care contract with Spairliners who have been providing services since the A380 entry into service in 2008. The contract is effective from January 1, 2016 and covers component pooling and repair solutions of all Line Replaceable Units (LRUs) for Qantas’ Airbus A380 aircraft fleet. As a result of the new agreement the contract provides an additional transportation service to and from Qantas’ home base in Sydney and all line stations. The contract-ed services include the scope of about 1,000 part numbers (P/N) in total.
Adria Tehnika and easyJet sign coopera-tion agreement
Adria Tehnika has signed a cooperation agree-ment with British airline easyJet for mainte-nance on A320 aircraft. The agreement has been concluded for two years and covers work in the passenger cabin, reconfiguration of the cabin from 180 to 186 seats, the installation of a new galley and new lavatories. Work on the aircraft will be performed during the winter timetables 2016/2017 and 2017/2018.
FINANCIAL NEWS
May 23, 2016 / Vol. 541
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WEEKLY AVIATION HEADLINES
ter of 2016 compared to $30.2 million in the same period in the previous year. At March 31, 2016, FLY’s total assets were US$3.2bn, includ-ing an investment in flight equipment totaling US$2.7bn. Investment in flight equipment in-cludes US$84.6m of net maintenance right as-sets. Cash and cash equivalents at March 31, 2016 totaled US$428.1m, of which US$329.3m was unrestricted. In addition, FLY had twelve unencumbered aircraft with an aggregate net book value of US$610.2mn at March 31, 2016. The book value per share at March 31, 2016 was US$18.83.
AerCap Holdings N.V. announces pricing of US$1.0bn aggregate principal amount of senior notes
AerCap Holdings N.V. released that AerCap Ireland Capital Limited and AerCap Global Aviation Trust (together, the “Issuers”), each a wholly-owned subsidiary of the Company,
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priced their previously announced offering of senior notes, consisting of US$1.0bn aggre-gate principal amount of 3.95% Senior Notes due 2022 (the “Notes”). The Notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company and certain other subsidiaries of the Company. The Issu-ers intend to use the net proceeds from the Notes for general corporate purposes. Bar-clays Capital Inc., Mizuho Securities USA Inc., RBC Capital Markets, LLC, and Wells Fargo Se-curities, LLC are serving as joint book running managers for the underwritten public offering. Barclays Capital, Mizuho Securities USA, RBC Capital Markets, and Wells Fargo Securities are serving as joint book running managers for the underwritten public offering.
Gogo to launch of US$500m senior se-cured notes offering
Gogo reported the commencement of a pri-vate offering of US$500m aggregate principal amount of senior secured notes (the Notes), due 2022, to be issued by its direct wholly
owned subsidiary, Gogo Intermediate Hold-ings (the Issuer), and its indirect wholly owned subsidiary, Gogo Finance. The Notes will be guaranteed on a senior secured basis by Gogo Inc. and all of its existing and future domes-tic restricted subsidiaries, subject to certain exceptions. The Notes and the related guar-antees will be secured by first priority liens on substantially all of the Issuers’ and the Guarantors’ assets, including pledged equity interests of the Issuers and the Guarantors. There can be no assurance that the proposed offering of the Notes will be completed. The Issuer intends to use a portion of the net pro-ceeds from the sale of the Notes to repay its outstanding indebtedness under its existing senior term credit facility and to use the re-maining net proceeds for working capital and other general corporate purposes, including potential costs associated with the launch and commercial rollout of Gogo’s next-generation technology solutions.
feature extensive branding for both NetJets and its sister company, Executive Jet Manage-ment Europe (EJME), within the building and around the landing site. The Heliport is a key piece of infrastructure for those flying pri-vately in the UK and is a prime link between the city and surrounding airports that NetJets Europe serves. The number of interlining flights from the Heliport with onward private jet flights increased up to 20% last year. Big-gest contributors included London Stansted, Biggin Hill, Farnborough, London Luton and London Oxford airports. The Heliport recently celebrated its 500,000th movement over the course of its 59-year history.
FL Technics, a global provider of tailor-made aircraft maintenance, repair and overhaul ser-vices, has announced the start of a new part-nership with an international manufacturer of synthetic lubricants for civil and military aviation – NYCO. FL Technics will act as NYCO’s
NetJets Europe – a Berkshire Hathaway-affil-iated company, unveiled a key investment in the London private aviation market, through a partnership with The London Heliport – the only Heliport in the city certified by the Civil Aviation Authority (CAA). The Heliport will be known as NetJets London Heliport and will
OTHER NEWS
official distributor in 26 countries. FL Technics will promote and sell turbine and piston en-gine oils, hydraulic fluids, greases, specialty lubricants and additives, manufactured by NYCO. All of the products are designated for civil/commercial aircraft, including Airbus, ATR, Boeing and SAAB.
Leisure carrier Small Planet Airlines GmbH obtained German Air Operator’s Certificate (AOC) and will now operate flights under Ger-man registration. Small Planet Airlines Group began offering its services to the German mar-ket last autumn and from the first steps had a clear vision to establish an AOC in Germany. The German Small Planet Airlines has con-cluded agreements with two leading tour op-erators, TUI and Thomas Cook, and this sum-mer plans to implement almost 800 flights. In 2016, Small Planet Airlines GmbH will operate from two bases – Bremen and Paderborn. The fleet will consist of two Airbus A320 aircraft. Operations under German AOC started on Friday, May 13th. AOC in Germany will be the third Air Operator’s License for Small Planet Group which is also operating airlines in Lithu-ania and Poland.
Alaska Airlines will add new, three-times daily service between San Diego and Sacramento and Burbank and San Jose, beginning March 16, 2017. The nonstop service will connect California fliers to London, Beijing and Tokyo on Alaska’s partners British Airways, Hainan Airlines and Japan Airlines. Alaska will fly the routes with 76-seat E175 jets, operated by SkyWest Airlines, which features 12 seats in first class, 12 seats in premium class and 52 seats in the main cabin.
FLYHT Aerospace Solutions has received sup-plemental type certificates (STCs) for the Au-tomated Flight Information Reporting System (AFIRS) 228 on multiple aircraft types. The approved aircraft types include the ATR 42-500 “600 version” and the ATR 72-212A “600 version” from the European Aviation Safety Agency (EASA), the Boeing B757-200 aircraft from the Federal Aviation Administration (FAA) and the Transport Canada Civil Aviation (TCCA) STC for the Bombardier DHC 8 -100, 200, 300 series aircraft. The ATR STCs enable a long-time FLYHT customer to install the AFIRS 228 on their newly acquired ATR aircraft. Four of the aircraft will come online with AFIRS 228 within the month, contributing to a total of ten new aircraft that will enter into service by the end of 2016.
Air Astana has been forced to cancel the planned launch of flights connecting the capi-
Boeing retains U.S. Air Force executive aircraft maintenance role
Boeing said it will continue maintaining and supporting the U.S. Air Force’s C-32A and C-40BC execu-tive aircraft through a new seven-year, US$319m contract awarded in March. The Air Force uses the C-32A and C-40BC, which are based on the Boeing 757 and 737 passenger planes, to transport the vice president, cabinet members and military commanders among others. Boeing has supportedthe aircraft since first delivery in 1998 and 2001. The C-32 and C-40 are among the many military derivatives of commercial airplanes that Boeing has built for U.S. and international customers, offer-ing affordable adaptations of proven airframes and existing worldwide support for military missions.
MILITARY AND DEFENCE
U.S. Air Force awards seven-year, US$319m contract to Boeing for C-32, C-40 support Photo: Boeing
NetJets Europe signs partnership with The London Heliport Photo: NetJets
May 23, 2016 / Vol. 541
9AviTrader WEEKLY AVIATION HEADLINES
tals of Kazakhstan and Mongolia with direct Astana-Ulaanbaatar flights starting from June 22016, due to the ungrounded revocation of permission by the Civil Aviation Authority of Mongolia (CAAM). The intergovernmental Air Services Agreement between the Republic of Kazakhstan and the Republic of Mongolia was signed in 1992 and the Memorandum of Un-derstanding establishing the number of flights to be operated was signed in 2014. These documents provide the legal basis for the air-lines of the two countries to start flights with immediate effect of signing. Air Astana started the flight permission application process that normally takes two months, eight months be-fore the first flight. The company successfully completed the audit by the Mongolian civil aviation authorities and was informed that there were “zero findings”. CAAM granted per-mission to start flights in March 2016. In April 2016, the CAA of Mongolia unilaterally with-drew permission without any valid grounds. The Air Services Agreement stipulates the three specific grounds based on which Mon-golia could possibly revoke the permission of a Kazakh designated carrier, and none of these apply to Air Astana. Despite intensive efforts by the Ministry of Foreign Affairs and Ministry of Industry and Development of the Republic of Kazakhstan and Air Astana itself, the CAA of Mongolia has not reversed its revocation quoting a range of ungrounded and changing list of reasons.
joined AerSale in 2014, has been promoted to Vice President of Human Resources. Mike Wilson joined AerSale in March 2016 as Vice President of Materials EMEA (Europe, Middle East, and Africa) in London.
• Constant Aviation has announced the addition of Jeremy Snider to the organiza-tion as the Gulfstream Fleet Sales Manager. Prior to Constant Aviation, Jeremy worked for Gulfstream Aerospace for more than 15 years, serving most recently as a RegionalSales Manager. Before he began his role insales, Jeremy worked as a Customer Pro-gram Manager.
• Hawker Pacific has invested in resources and technologies to support the growing demand for cost-effective helicopter sales and support in the region. Mathew Hardyhas been appointed to the new position of General Manager, Helicopter Sales and Sup-port. In this role Mathew is responsible for overseeing and developing Hawker Pacific’s integrated helicopter sales and product sup-port services across the Asia Pacific region.
• After 12 years of committed and success-ful service, Alan Webber has asked if RoyalAero will help him pursue some new chal-lenges in the Aviation Sector. Royal Aero en-courages the development of its staff and therefore is delighted to be able to assistAlan before wishing him a fond farewell.
AviTrader Publications Corp.Suite 305, South Tower
• Alaska Air Group has promoted two senior leaders. Ben Minicucci was appointed pres-ident and chief operating officer of Alaska Airlines, and David Campbell was appoint-ed chief executive officer and president of Horizon Air. Minicucci has been Alaska’s chief operating officer and executive vice president since December 2008. Previously, he served as vice president of Seattle op-erations, where he led the performance of the airline’s largest hub. Campbell, based in Portland, Oregon, joined Horizon as presi-dent and chief operating officer in July 2014 with more than 25 years of experience in maintenance and flight operations.
• AerSale, a global supplier of aircraft, engine, and OEM (Original Equipment Manufacturer) used serviceable materials, reported two ad-ditions to its executive team as the company seeks further expansion in the aviation af-termarket industry. Vanessa Machado, who
INDUSTRY PEOPLE
The Global MRO Procurement Expo 1 - 2 June 2016 Olympia, London
Technical Aspects of a Leased Asset 2016 NH Carlton Hotel, Amsterdam
Maintenance Reserves Training Seminar 2016 7 June 2016 NH Carlton Hotel, Amsterdam
Engine Leasing Seminar 2016 19 September 2016 Holiday Inn Kensington Forum, London
Aircraft Economic Life Summit 2016 22 November 2016 Gibson Hotel, Ireland, Dublin
THE AIRCRAFT AND ENGINE MARKETPLACEPage 1 of 4
Aircraft Type Company Engine MSN Year Available Sale / Lease Contact Email Phone
A300-600 Aersale CF6-80C2A5 787 1998 Now Sale / Lease Craig Wright [email protected] +1 305 764 3238
A330-223 FPG Amentum PW4168A 943 2008 Mar 2016 Sale / Lease Jack Hynes [email protected] +353 16398125
A330-223 FPG Amentum PW4168A 962 2008 Mar 2016 Sale / Lease Jack Hynes [email protected] +353 16398125
A330-223 FPG Amentum PW4168A 979 2009 Oct 2016 Sale / Lease Jack Hynes [email protected] +353 16398125
737-300 Aersale CFM56-3C1 27910 1997 Now Sale / Lease Craig Wright [email protected] +1 305 764 3238
B737-300 European Capital Corp. CFM56-3B2 24634 1990 Now ACMI/Wet Lease Iacovos Yiakoumi [email protected] +35722873250
B737 300 World Star Aviation Services CFM56 3C1 28873 Apr 2016 Lease Tommy Guttman tguttman@worldstaraviation com +972 544 220000B737-300 World Star Aviation Services CFM56-3C1 28873 Apr 2016 Lease Tommy Guttman [email protected] +972-544-220000
B737-300F ORIX Aviation CFM56-3B2 24710 1990 Now Sale Cian Coakley [email protected] +353 877760451
B737-400 World Star Aviation Services CFM56-3C1 24332 Q4/2016 Lease Tommy Guttman [email protected] +972-544-220000
B737-400 Safair Operations Combi Now ACMI only C. Schoonderwoerd [email protected] +27 11 928 0000