AVIATION UPDATE E MAG - AUGUST 2017 by Aviation Update

Vol 03

Issue 12

AUGUST 2017

` 100

www.aviationmagazine.in

Indiaâ&#x20AC;&#x2122;s premier aviation monthly magazine

viatio A N UPDATE

Singapore Airlines, pax up by 5.4% in June 2017

Emirates and flydubai sign partnership agreement

THAAD

system intercepts target in missile defense flight test

Contents

Boeing Team Completes KC-46 Tanker Electromagnetic Testing 07 11

Nordic Aviation Capital appoints new CFO

Antonov searches

05 for US partners for An-77 project

Bombardier’s Global 7000 surpasses 500 flight test hours

Aeroflot, pax up by

BAA Training provides ATR 42/72 training for Tanzanian airlines

Vision Systems introduces its electronically dimmable window

GA Telesis and Tokyo Century launch $1 billion leasing initiative Double-digit revenue growth at United Cargo confirms strong market

AVIATION UPDATE

08 16.6% in 2017

Boeing, FedEx

23 to test fuel-

saving tech with ‘ecoDemonstrator’ aircraft Cathay Pacific

26 to buy out DHL’s minority share in Air Hong Kong

2017 AUGUST

EDITORIAL BOARD

Aviatio UPDATEN Vol : 03

Issue : 12

Editor-in-Chief : B. Kartikeya

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AUGUST 2017

stand up eight

AUGUST - 2017

Fall seven times and

Greetings and Salutations

Dear Readers,

Time surely flies when you have lot of things on your plate. We are Turning 4 by this September. The Aviation Update team has certainly made great efforts to bring to our readers, the most crucial updates on aviation sector to keep them well informed. We are committed to shorten the information gap between the aviation industry and our readers. There are lots of informative updates in our quick update section and the Engine section will appeal to patrons of engine technology. The career prospects that exist and will exist in near future in aviation field will provide a great motivation to the patrons wishing to enter aviation. We wish them a great success in the captivating and lucrative aviation sector. The biggest achievement for us would be the contribution we have made in bridging the gap between aviation enthusiast and the industry itself. We are always delighted to receive queries and feedbacks from our readers. We have incorporated many things as per the demand of our readers and subscribers. We feel proud for being the only aviation magazine in India which is totally devoted on creating value for its readers and subscribers. We would also like to know from your end how has been your experience of reading Aviation Update so far has. Do you like its design, its information quotient or its tone of voice? Feel free to reach out to us with your feedbacks on our mail id; we will like to publish your feedbacks in our magazine in coming issues.

Thanks

B. Kartikeya Editor

AVIATION UPDATE

QUICK UPDATE

Bombardier delivers the first Q400 to Philippine Airlines

agreement announced on December 8, 2016 - which included a firm order for five Q400 aircraft and purchase rights for an additional seven. Following the exercise of the purchase rights announced at the 2017 International Paris Air Show, Philippine Airlines now has firm orders for 12 Q400 aircraft.

U B

ombardier Commercial Aircraft delivered the world’s first dual-class, 86 seat turboprop aircraft to Philippine Airlines at its facility in Toronto, Canada, where the aircraft is manufactured. “We congratulate Philippine Airlines for taking delivery of the world’s first dual-class, 86-seat Q400 aircraft, and are confident that the airline will continue to benefit from the outstanding performance of Bombardier turboprops,” said Fred Cromer, President, Bombardier Commercial Aircraft. “This delivery is an example of how Bombardier’s Q400 is an ideal solution for airlines that require higher-performance and larger turboprops as they develop regional routes to meet increasing passenger demand. Bombardier is proud to have the only commercial turboprop available today to offer up to 90 seats.” “With its superior performance capabilities, unmatched profitability advantages and exceptional passenger experience, the new Q400 aircraft will enable Philippine Airlines to increase its competitiveness and set a new standard for turboprops in the region,” said Jaime J. Bautista, President and Chief Operating Officer, Philippine Airlines. “We are excited to bring this new aircraft back to the Philippines, and are confident that the Q400 aircraft will continue to play a significant role in positioning Philippine Airlines as a fivestar airline and in regaining its dominance in the domestic market.” Philippine Airlines’ new Q400 aircraft is configured with 86 seats in economy and premium economy classes with a 29-inch and 33-inch seat pitch respectively. The aircraft delivered today is scheduled to enter into service in two weeks. This milestone aircraft is part of Philippine Airlines’ purchase

AVIATION UPDATE

Boeing reports 183 total deliveries in 2Q 2017

he Boeing Company announced the deliveries across its commercial and defense operations for the second quarter of 2017. According to the data released by Boeing, the company has delivered 183 aircraft in the second quarter of 2017, totaling all deliveries year-to-date to 352. The vast majority of them – 123 in the second quarter – are constituted of the 737 model. The popularity of this model was clearly showed at the Paris Air Show, where newly revealed 737 MAX10, alongside with MAX 8 and MAX9 models, topped the lists of the deals made. According to Boeings data, the deliveries of military aircraft are also steady, with the exception of the new CH-47 Chinook. Only one model of this aircraft has been delivered in the second quarter, a decline from three deliveries during the first quarter of 2017.

Antonov searches for US partners for An77 project

krainian plane manufacturer Antonov is seeking US partners for the joint development of a new model of An77 transport aircraft. This question was discussed on July 3 during a visit paid by the delegation of the Committee on Transport and Infrastructure of the US House of Representatives to the company. Antonov provided a proposal for the joint development of the An-77 – a modernized version of the medium-heavy military transport aircraft, capable of short take-off and landing (STOL). The aircraft could potentially occupy a niche between C-130 with a payload of up to 21 tons and C-17 - of up to 76 tons, Antonov said in a Facebook post. Antonov offered to organize cooperation on this project with the broad participation of American aircraft manufacturers and suppliers. According, to Antonov, the implementation of such a project call for an interaction with the bodies of state aviation regulation and control - the State Aviation Service of Ukraine and the US FAA. The conclusion of BASA (Bilateral Aviation Safety Agreement) should also become an important step.

CAE 10-year pilot demand outlook anticipates 255,000 new pilot vacancies

2017 AUGUST

QUICK UPDATE

AE has published its 10-year pilot demand outlook, and the civil aviation, defense and security, and healthcare training company is warning that the airline industry will need to produce 70 new type-rated pilots per day to meet global demand, a rate that many doubt will be possible given the current cost and time barriers to entry. The report projects that 255,000 new airline pilots will be needed globally over the next 10 years. The two regions driving the majority of that demand, the report says, are Asia, where 90,000 pilots need to be onboarded over the next decade – and where some 10 percent of current pilots are expats – and the Americas, where 85,000 new pilots will need to be hired. Earlier this month, Air Cargo World reported that Ameriflight and UPS Airlines were teaming up on a new training program that was facilitated, in part by an exemption granted by the FAA that allowed pilots-intraining to operate as captains after 1,000 flight hours, with certain restrictions and increased oversight. While encouraging, that program is still in its infancy, and the sector will require broader measures to address the underlying demand. That said, existing restrictions are still stringent, and training for most pilots can cost over US$200,000, prompting many potential candidates to enter other professions with lower training costs. Organizations representing the air cargo and passenger industries have lobbied for years to amend this situation, but NY Senator Chuck Schumer has made this cause his personal “hill to die on,” in the words of one airline executive. The current Whitehouse administration has so far made no indication that they will change the status quo, choosing to focus its aviation agenda on privatizing air traffic control instead. The CAE report also estimated that 85 percent of pilot demand in the Americas would be for U.S.- and Canada-based carriers. At an estimated per-pilot cost of 200k, training costs for pilots in those two countries alone will cost the combined national economies approximately $14.5 billion dollars, and those costs, borne mostly by pilots, will be passed on to consumers in one way or another.

AUGUST 2017

EasyJet CEO Carolyn McCall resigns

arolyn McCall, the CEO of British low-cost carrier easyJet, is leaving the company for the CEO position of British broadcaster ITV. McCall joined the company in 2010 as Chief Executive Officer and was responsible for bringing a customer-focused approach to the airline. Under her management, the company announces that there was a huge improvement in punctuality and reliability as well as introducing important customer innovations like allocated seating. “Her strategic focus has resulted in a series of milestone events including reaching the landmark of carrying 70 million passengers annually and attracting more business travellers, with more than 12 million now flying with easyJet each year – always ensuring easyJet provides easy and affordable travel for all,” is how her achievements are presented on the official company website. “Carolyn built and led the management team that has transformed easyJet’s performance in every respect since 2010,” said John Barton, easyJet Chairman. ““She put easyJet’s passengers and people at the heart of the business. Having first built a solid operational performance, she redefined the customer experience not just at easyJet but across short-haul Europe and has seen both the number and loyalty of easyJet’s passengers grow as a result. This has led to sustained and continuing financial success […]”. “After seven years, the opportunity from ITV felt like the right one to take. It is a fantastic company in a dynamic and stimulating sector,” said McCall. “easyJet is a structural winner in a brilliant position, and I look forward to being a loyal customer in the years to come”.

Prior to joining easyJet, McCall was Chief Executive of Guardian Media Group. She was also was a non-executive director of Lloyds, a non-executive director of Tesco and of New Look, Chair of Opportunity Now and a former President of Women in Advertising and Communications London. She graduated from Kent University with a BA in History and Politics and from London University with a Masters in Politics.

Etihad reports huge losses for 2016

n July 27, Etihad Airways, part of the Middle Eastern trio with Emirates and Qatar, reported an impressive loss of $1.87 billion for 2016, compared to a profit of $103 million in 2015. It is the first time since the airline became profitable in 2011 that it has reported a loss. A culmination of factors contributed to the disappointing results for 2016,“ Mohamed Mubarak Fadhel Al Mazrouei said, commenting on the results. „The Board and executive team have been working since last year to address the issues and challenges through a comprehensive strategic review aimed at driving improved performance across the group, which includes a full review of our airline equity partnership strategy“. According to an official statement from Etihad, the core airline business achieved steady passenger revenues of $4.9 billion and 79% load factors while carrying a record 18.5 million passengers. Available seat kilometers (ASKs) increased by 9% to 113.9 billion. Yields fell 8%, especially for Business Class, as more corporate travelers are encouraged to downgrade to Economy. This was partially offset by an 11% reduction in unit costs. Total impairments of US$ 1.9 billion included a US$ 1.06 billion charge on aircraft, reflecting lower market values and the early phase out of certain aircraft types. There was also a US$ 808 million charge on certain assets and financial exposures to

AVIATION UPDATE

QUICK UPDATE equity partners, mainly related to Alitalia and airberlin. According to Peter Baumgartner, the CEO of Etihad Airways, the carrier performed well in 2016, maintaining load factor levels, while increasing capacity.

Boeing expands CFO Smith’s role

Ray Conner and Senior Vice President of Program Management, Integration & Development Programs Scott Fancher created a window to consolidate a range of performance-based enterprise efforts under Smith. Among the responsibilities that will shift to Smith in the months ahead are oversight of the integration and execution of the company’s new three business unit strategy, which includes the July 1 launch of Boeing Global Services; acceleration of companywide innovation, productivity and marketbased affordability projects; and leadership of a new talent management system for identifying, developing and deploying general managers and program managers.

SWISS CFO moves to Lufthansa

oeing announced an expansion of the enterprise responsibilities of Greg Smith, currently the company’s chief financial officer and executive vice president of Corporate Development & Strategy. Starting July 1, Smith, 51, will serve as chief financial officer and executive vice president of Enterprise Performance & Strategy, adding a range of duties focused on ensuring strong and consistent business performance, continued achievements in innovation and corporate functional excellence. “This is an evolution of Greg’s already substantial and impactful role within our company,” said Boeing Chairman, President and CEO Dennis Muilenburg. “In addition to being responsible for financial management, corporate development and overall company strategy, Greg will oversee and drive key cross-enterprise performance levers that are critical to achieving our growth and performance aspirations and to running our company better and more competitively every day.” Muilenburg added that the planned retirements later this year of Vice Chairman

AVIATION UPDATE

WISS Chief Financial Officer and a member of management board Roland Busch is stepping down from his role to move to a new position at parent company Lufthansa. Busch, is stepping down from his CFO role on November 1, 2017 and assuming new position as General Representative and Head of Future Finance on 1 January 2018. Michael Niggemann is named the following SWISS’ CFO starting November 1, 2017. Busch has worked in the role since 2013.

Delhi airport struggles with high-tech fencing system

ndira Gandhi International Airport in Delhi, India is protected by the hightech security system. However, the virtual fencing system is yet to prove its efficiency, as currently it is more effective in raising a

false-alarm than detecting threats. The Perimeter Intruder Detections System (PIDS) is based on technology producing invisible laser rays. When touched they set off an alarm. The device is controlled by the Airport Operation Control Centre that usually sends security team when the alarm sets off. The system, whose purpose is to detect trespassing, provides the second layer of security at the Delhi airport. Prior its establishment it was expected that the system would help to secure the airside perimeters and areas accessible to aircraft as well as protect against intrusion and trespassing. However, the unvented outcome the Delhi airport now struggles with is that the system causes up to 50 fake alarms a day, while other sources even report up to 1500 (!) fake alarms a day prior the system was disabled in certain zones. In order words, the virtual fencing system instead of increasing airport security is getting it more... tired and numbed. It would be unfair to call the system useless. For what it’s worth, the system has actually done precisely what it is installed to do: caught a trespasser. PIDS system informed the central security force after a man climbed the Delhi airport wall. Despite that the authorities are considering the options to get rid of the system or at least get yet another security system implemented. During the Bureau of Civil Aviation Security meeting it was even proposed to replace the virtual fencing system with “power fencing”.

Nordic Aviation Capital appoints new CFO

ordic Aviation Capital announced that Brian Ruben Pedersen has joined NAC as Chief Financial Officer effective 1 July 2017. Having held several senior executive positions in Maersk, Brian Ruben Pedersen’s most recent position was as CFO for Maersk Global Shared Services in Mumbai. He has over 22 years’ experience working in various financial and managerial roles and has gained substantial international exposure from working in a variety of countries including Hong Kong, Pakistan, Indonesia, Singapore, and Brazil.

2017 AUGUST

QUICK UPDATE Brian holds a Bachelor of Finance from Copenhagen Business School, majoring in Finance and Credit Markets. He has completed several executive training courses at IMD Switzerland. Søren M. Overgaard, CEO of Nordic Aviation Capital, commented: “Brian brings a wealth of leadership and financial experience to NAC. His achievements and expertise in financial management will make a significant contribution to the financial and strategic development of our company. I am delighted to welcome Brian to his new role in NAC.”

plans to continue the growth and increase the quantity supplied to as much as 315 thousand tons of aviation fuel. “We are happy about the continuously expanding partnerships. Turkish Airlines has been our client since 2015 and we support carrier’s activities in a number of serviced stations. I am glad that we manage to extend contracts, for us, these are the best indicators that partners are happy with the quality of services provided,” comments Linas Geguzis, Chairman of the Board at BGS.

June 2017 operating highlights In June 2017, Aeroflot Group carried 4.7 million passengers, up 19.4% year-on-year. Aeroflot airline carried 2.9 million passengers, a year-on-year increase of 14.8%. Group and Company RPKs increased by 20.6% and 10.8% year-on-year, respectively. ASKs rose by 18.2% year-on-year for Aeroflot Group and by 9.6% for Aeroflot airline. On domestic routes, Group passengers carried and RPKs grew by 10.7% and 10.3% year-on-year, respectively. ASKs grew by 10.1% year-on-year. Company passengers carried and RPKs on domestic routes were up 12.0% and 4.7% year-on-year, respectively. ASKs grew by 5.0%.

NAC’s owned and managed fleet at March 2017 was 393 aircraft with an average age of 6.3 years and a value of over 5 billion dollars. NAC aircraft are serviced in-house at our state of the art maintenance facility located in Billund, Denmark prior to sale or lease. In addition, at Billund HQ, a small facility supplies aircraft parts.

BGS operates in Vilnius, Kaunas, Palanga, Riga, Tallinn, Warsaw Modlin, Warsaw Chopin, Krakow, Katowice, Radom, Zhukovsky, Kiev Zhuliany, Kiev Boryspil, Odessa, Lviv and Ostrava-Mošnov airports. In these airports, BGS provides services to such clients as Ryanair, Wizz Air, Ukraine International Airlines, Lufthansa Group, Turkish Airlines, DHL, TAP Portugal, Air France, KLM Royal Dutch Airlines, flydubai and others.

BGS to provide fuel for Turkish Airlines in several airports

BGS is the largest independent ground handling and fuelling service provider in the Central and Eastern Europe operating in a network of 16 airports across the regions. BGS is a member of Avia Solutions Group family – an international, publicly traded aviation holding company with over 20 subsidiaries worldwide.

In June 2017, the number of passengers carried on the Group’s international routes increased by 32.0% year-on-year. RPKs increased by 29.6%, while capacity grew by 24.9%. The number of passengers carried by Aeroflot airline on international routes increased by 17.6%. RPKs increased by 14.5%, and ASKs by 12.2%. Growth in the international segment was driven by the stable demand in line with the strengthening ruble, increased flight frequencies and the launch of flights to new international destinations, as well as the development of Rossiya’s partnerships with tour operators and of Pobeda’s international route network.

Aeroflot, pax up by 16.6% in 2017

As a result of these factors, the passenger load factor increased by 1.7 p.p. year-on-year to 85.6% for the Group. For the Company the passenger load factor increased by 0.9 p.p. year-on-year to 85.1%.

GS, an international provider of ground handling and aircraft fueling services, has won a fuel supply tender for Turkish Airlines operations in Boryspil, Riga and Vilnius International airports during 20172018. Fueling partnerships were extended in Boryspil and Vilnius International airports, whereas Riga’s International airport is a new service location. Fueling services will be provided until the end of April 2018. During 2016, the entire BGS-served airport network, comprised of Lithuania, Poland, Latvia, Estonia and Ukraine, was supplied with almost a quarter of a million tons of aircraft fuel, or 80% more compared to the previous year. In 2017, the company

AUGUST 2017

n the first six months of 2017, Aeroflot Group carried 23.0 million passengers, up 16.6% year-on-year. Aeroflot airline carried 15.2 million passengers, a year-onyear increase of 13.5%. Group and Company RPKs increased by 18.8% and 11.7% year-onyear, respectively. ASKs rose by 15.9% yearon-year for Aeroflot Group and by 9.6% for Aeroflot airline. The passenger load factor increased by 2.0 p.p. year-on-year to 80.6% for the Group and by 1.4 p.p. year-on-year to 80.3% for the Company.

BAA Training signs agreement for Airbus A320 FFSs utilization

AA Training, European standard aviation training centre, has announced the signing of a partnership agreement with Pan Am International Flight Training Centre (Thailand) for Airbus A320 FFSs utilization in Thailand. „The role of a training centre is significant when pilots’ demand grows at phenomenal rates. Opening up a new location undoubtedly supports our business firmly. Enlarging geographical presence

AVIATION UPDATE

QUICK UPDATE helps satisfying existing and ever increasing dry as well as wet lease needs of our current clients, for whom other geographically more distant locations are less convenient for a short period training ,“ comments Egle Vaitkeviciute, CEO of BAA Training. International Air Transport Association (IATA) predicts that Asia-Pacific will be the most powerful driver for passengers’ growth with an extra 1.8 billion annual travellers by 2035. According to the aircraft manufacturer Airbus, Asia-Pacific is the fastest growing region that is forecasted to meet 14 275 new aircraft deliveries, compiling 41% of the overall demand. This corresponds to 219,890 new pilots needed for the region. Being a market leader, Asian region naturally dictates the tendencies for training facilities, therefore, to fulfil the growing demand, BAA Training now offers dry and wet lease of Airbus A320 FFS on Pan Am International Flight Training Centre’s (Thailand) premises in Bangkok, Thailand. „This partnership with BAA Training enables us to support more clients outside the local market field, as well as to provide them with more convenient and user-friendly training environment. We believe that all parties including the end-user will enjoy this win-win opportunity,“ notes Hideaki Mifune, Director and CFO at Pan Am International Centre (Thailand). BAA Training is able to provide training solutions for 18 types of aircraft on 55 FFSs located in 32 training spots across Europe, North and South Americas, Africa and Asia. BAA Training is also a member of Avia Solutions Group family – an international, publicly traded aviation holding company with over 20 subsidiaries worldwide.

Poland to build a mega-airport for 100 million passengers

he government of Poland plans to build a new mega-airport, designed for 100 million passengers, for 30 billion zlotys ($8.2 billion).The construction will last for 10 years, after which the main airport, Warsaw Chopin Airport, will be closed, said Mikolaj Wild, a representative of the Polish government

AVIATION UPDATE

responsible for the Central Polish Airport (CPA) construction. “The construction and opening of the CPA is synonymous with the closure of the Chopin Airport, handling most of the traffic. Will it carry out other aviation activities, for example, for defense needs, well, this issue is still awaiting our decision,” stated Mikolaj Wild. At the same time, the Warsaw-Modlin Airport, which is the base of the Ryanair, will continue to operate. The location of the Central Polish Airport has not yet been determined. It is known that it will be located between Warsaw and Lodz, within a radius of 40-50 km from the capital. At the first stage after the opening, the CPA is expected to receive 50 million passengers, later its passenger traffic will be increased to 100 million people. The exact date of the construction is also unknown. According to the government, works will last 10 years. However, experts consider such period of time optimistic. In general, experts are critical of the airport establishment plans. “This is an absurd idea. Where to get more than 50 million passengers a year at the airport and target 100 million, since up to 2030 the entire air traffic in Poland is estimated at about 60 million people?” noted Andrzej Raczynski, a professor at Gdańsk University and the former head of Gdansk Airport. In 2016, all airports in Poland served a record number of passengers – about 35 million people. At the same time, the Warsaw Chopin Airport received 12.8 million passengers. According to the forecast of the Civil Aviation Administration of Poland, by 2030 the passenger traffic in Polish airports will exceed 59 million people.

Embraer delivers 35 commercial and 24 executive jets in 2Q17

uring the second quarter of 2017 (2Q17), Embraer delivered 35 jets to the commercial aviation market and 24 jets to the business aviation market, of which 16 were light jets and eight were large jets. The number of deliveries in Commercial Aviation rose roughly 35% over the same period last year. With respect to Executive Jets, the segment delivered five large jets more than in the second quarter of 2016, although in total the company delivered two units less in 2Q17 compared to 2Q16. On June 30, Embraer’s firm order backlog totaled $18.5 billion. The main highlights of the quarter were Embraer’s announcements during the Paris Air Show, which could reach 51 aircraft and roughly $3 billion, at current list prices. Embraer announced firm orders and commitments from undisclosed customers for the E2s, the second generation of the E-Jets family of commercial aircraft. The firm order consists of ten E195-E2 jets, already included in the 2nd quarter backlog, with ten additional purchase rights. Embraer also signed a commitment with another undisclosed customer to purchase 20 E190-E2s. The agreement is subject to final documentation by the customer. During the event, the company also announced: a firm order from Belavia, from Belarus, for two aircraft of the current generation of E-Jets – one E175 and one E195 – both for delivery in 2018; an agreement with Japanese airline Fuji Dream Airlines for a firm order of three E175 jets with purchase rights for three more aircraft of the same model; a firm request for two additional E190 jets for KLM Cityhopper, KLM’s regional subsidiary; and the signature of an agreement with Japan Airlines for a firm order for an additional E190. Another highlight of the quarter was the contract signed with the American Airlines Group for four E175 jets, worth USD 182 million at list prices, announced in April. In Executive Jets, the main highlights of the 2nd quarter were the delivery of the company’s 1,100th aircraft, the sales of three Legacy 650Es to Germany’s Air Hamburg, which became then launch customer of this aircraft, and the delivery of the first Phenom 100EVs to markets such as Brazil and Mexico. An evolution of the Phenom 100, which entered into service in 2008, the Phenom

2017 AUGUST

QUICK UPDATE 100EVdelivers better performance with new avionics and modified engines.

Singapore Airlines, pax up by 5.4% in June 2017

percentage points higher with growth in cargo traffic (measured in freight- tonnekilometres) of 7.2% against the capacity reduction of 0.2%. CLF improved across all regions as demand outpaced capacity changes.

Wizz Air appoints executive vice president and deputy CEO

Singapore Airlines’ passenger carriage increased 5.4% compared to the previous year, against a capacity contraction of 0.9%. PLF improved 4.9 percentage points to 82.7% due to higher passenger carriage registered for all regions, in particular on the Kangaroo routes. The restructuring in the Americas network, and the increase in passenger volume across all routes in West Asia and Africa, also led to higher PLFs in the respective regions. The competitive landscape remains challenging and promotional efforts will continue in relevant markets. SilkAir’s system-wide passenger carriage grew 23.9% year-on-year, surpassing capacity growth of 14.3%. Consequently, PLF improved by 5.7 percentage points to 73.8%. Strong growth in demand exceeded capacity injections across East and West Asia. Budget Aviation Holdings (BAH) recorded a 17.8% year-on-year increase in system-wide passenger carriage, exceeding capacity expansion of 14.7%. Consequently, PLF improved by 2.3 percentage points to 85.8%. Demand on routes to Thailand, India and Australia, as well as fifth freedom routes to North Asia, continued to improve. During the month, BAH launched its maiden European long-haul service to Athens.

ulfstream Aerospace announced that it has delivered its 550th Gulfstream G550 aircraft. The receiver of the aeroplane is undisclosed. “This milestone delivery affirms the continued demand for the G550, one of the most dependable and sought-after aircraft in the world today,” said Mark Burns, Gulfstream president. “The G550’s best-in-class range and payload have earned it a lasting reputation as a versatile aircraft for business aviation and an ideal platform for special missions.”

IA Group airlines’ passenger load factor (PLF) improved 4.6 percentage points to 82.7%. Passenger carriage (measured in revenue passenger kilometres) increased 8.6% compared to last year, outpacing capacity (measured in available seat kilometres) expansion of 2.7%.

Gulfstream delivers 550th G550

izz Air announces that it has appointed Stephen Jones as Wizz Air’s executive vice president and deputy chief executive officer. Jones will take up his appointment during the latter part of 2017. As executive VP and deputy CEO, Jones will report to the Company’s CEO and be a member of the company’s executive team. He will be responsible for Wizz Air’s commercial, marketing and IT organizations with the company’s CEO, CMO and the head of IT. Jones, who is a national of both New Zealand and the United Kingdom, has been the chief strategy, network and alliances officer at Air New Zealand since 2013 during which time he was responsible for the airline’s overall corporate strategy, network development, alliances and sustainability. Prior to this role, Jones held a number of other roles in Air New Zealand since he joined the airline in 2001, including GM of their low cost carrier Freedom Air, GM of the airline’s domestic business unit and Tasman and Pacific Islands business unit as well as GM of investor relations and financial planning, following the airline’s recapitalization in 2003. He also currently serves as chairman of the Star Alliance management board and strategy committee.

Powered by two robust Rolls-Royce BR710 C4-11 engines, the G550 has the longest range of any business jet in its class. It can easily carry up to 19 passengers between the world’s business capitals and can fly eight passengers and four crew 6,750 nautical miles/12,501 kilometers nonstop, connecting New York with Dubai at Mach 0.80, or London with Los Angeles at Mach 0.85. The aircraft has amassed more than 50 city-pair speed records during its more than 10 years in service, including London to Tokyo in just over 11 hours and Beijing to New York in just under 14. “The G550 has set the standard others follow,” Burns said. “The only aircraft in service today that fly farther than the G550 are our own Gulfstream G650 and G650ER. The G550 was also the first to feature our award-winning PlaneView™ flight deck, which quickly became the new ideal in business aviation. The aircraft’s technological and safety advances even led the G550 to be awarded the prestigious Robert J. Collier Trophy.” The Gulfstream G550 can fly at a maximum cruise altitude of 51,000 feet/15,545 meters and at speeds up to Mach 0.885. A fully equipped G550 offers numerous possible cabin layouts and options to fit a variety of missions.

Overall cargo load factor (CLF) was 4.5

AUGUST 2017

AVIATION UPDATE

QUICK UPDATE

Boeing Global Services begins operations

for this transition, and tomorrow they can begin to see the value of this dedicated services unit that allows us to deliver agile, cost-competitive solutions so they can reduce costs, drive efficiency and ultimately optimize their operations,” said Deal. Global Services, headquartered in the Dallas area, was formed by integrating the services capabilities of the government, space and commercial sectors into a single, customer-focused business. Operating as a third business unit of Boeing, Global Services hopes to provide agile, cost-competitive services to commercial and government customers worldwide.

oeing launches its third major business unit now when Boeing Global Services begins operating alongside Commercial Airplanes and Defense, Space & Security. This new services business focuses on the needs of government, space and commercial customers worldwide. Boeing chairman, president and CEO Dennis Muilenburg announced the formation of Global Services in November 2016 to expand Boeing’s share of a global— and growing—commercial and government services market worth an estimated $2.6 trillion over the next decade. “Aerospace services represents one of our biggest growth opportunities for the future,” said Muilenburg. “Standing up Global Services will accelerate our capabilities across all Boeing services and support areas—from our traditional parts, modifications and upgrades business to strengthening our data analytics and information-based offerings. Our services expertise, the global reach of our business, and our strong customer partnerships have us well positioned to compete and win in this important sector.” Boeing has been working since November 2016 to fully define and structure the integrated new business, which combines key capabilities of the company’s former Commercial Aviation Services and Global Services & Support groups. Led by President and CEO Stan Deal, Global Services will try to bring innovative service solutions to customers in four key capability areas: Supply Chain, Engineering, Modifications & Maintenance, Digital Aviation & Analytics, and Training & Professional Services. “We’ve been talking with our customers over the past few months as we’ve prepared

AVIATION UPDATE

KLM and Winair sign codeshare agreement

Bombardier’s Global 7000 surpasses 500 flight test hours

ombardier announced that its Global 7000 aircraft flight test program is progressing as planned and has surpassed the 500 flight test hours. With three flight test vehicles (FTVs) in flight testing and two remaining FTVs to join shortly, the Global 7000 aircraft program is on track to meet the aircraft’s targeted entry-into-service in the second half of 2018.

Bombardier also confirmed that the first several customer aircraft are progressing smoothly through production, with four Global 7000 business jets currently in final assembly at the Bombardier facility in Toronto, Ontario, Canada.

The KLM codes will be added to eight destinations in the Winair network: Saba, St. Eustatius, St. Barts, Tortola, St. Kitts, Nevis, Antigua and Dominica.

“The three flight test vehicles have been meeting all performance and reliability expectations for this stage in the flight test program, and the pace of testing will continue to accelerate with the two remaining FTVs progressing well towards their respective first flights. The aircraft’s high degree of maturity is very encouraging as we continue to push the limits of every aspect of this game-changing aircraft’s performance,” said Michel Ouellette, Senior Vice President, Global 7000 and Global 8000 Program.

LM and Winair have entered into a codeshare agreement, starting 1 July 2017. This new partnership will add eight destinations to KLM’s network in the Caribbean. From its homebase on St Maarten, Winair offers connections between the Windward Islands and KLM’s thrice weekly service between Amsterdam and St Maarten.

“This agreement with Winair presents KLM with a unique opportunity to strengthen our position in the Caribbean,” said Harm Kreulen, Air France-KLM Senior Vice President Benelux. “The new connections to the Windward Islands are a welcome extension of the KLM network in this important region”. “The new partnership starting on 1 July, teams Winair up with one of the world’s most renowned airlines, said Michael Cleaver, CEO Winair. “KLM and Winair passengers and their baggage can now travel seamlessly via St Maarten to destinations in both the KLM and Winair networks”.

“With more than 500 flight test hours already logged, the program’s development and certification schedule is on track. Our confidence level is high as we accumulate more flight hours and push towards entryinto-service in the second half of 2018.” In November 2016, Bombardier began flight testing Global 7000 business jet with the maiden flight of first flight test vehicle 1 (FTV1). FTV1 came close to surpassing the

2017 AUGUST

QUICK UPDATE speed of sound, reaching M 0.995 during a test flight in March 2017 - the largest business jet to operate so close to the sound barrier. The second flight test vehicle (FTV2) and third flight test vehicle (FTV3) joined the program in March and May 2017, respectively. The comprehensive testing conducted using the three FTVs over the course of the 500 flight hours has demonstrated the capability of the aircraft’s propulsion, avionics, electrical and mechanical systems. This testing will account for the majority of the certification requirements. Two remaining flight test vehicles, FTV4 and FTV5, are currently in final assembly and Flight Validation Testing in a dedicated preflight bay and are on track to join the other aircraft at Bombardier’s world-class flight test centre in Wichita, Kansas.

Spirit Airlines: deemed for cancellations, praised for costs

19.2% compared to June 2016. Together with that, the airline reports reaching only 96.1% of its flights destinations on time in June, 2017 – a 1.6% decrease from 97.7% performance in June 2016. This adds to the increasing tendency that customer satisfaction does not always correlate with airline performance. For instance, in the Travel Report 2017 by the American Customer Satisfaction Index Spirit Airlines ranked No. 1 as the least satisfactory airline in US. Frontier – another US LCC airline that is doubling in size according to the latest results – came in second in the said list. And that’s not even mentioning United, which – after all the PR disasters – has seen its stocks to skyrocket. Nine canceled flights by Spirit Airlines led to chaos Fort-Lauderdale-Hollywood International Airport in Florida in May 2017. Videos showing irritated passengers fighting Spirit employees instantly spread on social media platforms. Spirit admitted disruptions affected approximately 15 percent of flights across the network, leading to hundreds of canceled flights, which has negatively impacted thousands of customers.

Aeroflot to lease 20 Sukhoi Superjet 100 aircraft

mong its latest financial results of June 2017, the US ultra-low cost carrier Spirit Airlines reported an increase in traffic. However, the airline is unsuccessful at banishing its “known-for-delays” label as confirmed by the latest occurrence of July 18. The latest Spirit Airlines delay appears to have happened on July 18, when Orlandobound passengers got stuck at Niagara Falls International Airports overnight with, as they claim, no explanations from the airline. This incident, along with similar incidents, keeps the cancelations and delays statistics high for the airline, which had just experienced massive flight disturbances due to their pilots striking in May. In June 2017, Spirit reported an increase of traffic by 17% and capacity upsurge by

AUGUST 2017

EB-Leasing, UAC and Aeroflot signed an agreement on the purchase and leasing of 20 Sukhoi Superjet 100 aircraft to Aeroflot at the MAKS air show, VEB reported. “VEB-leasing” will buy from the UAC 20 aircraft, each having 87 passenger seats. The sum of the agreement is $702 million. Aeroflot will receive the first aircraft in the summer of 2017, the aircraft are given to the airline for a period of 12 years. The planes will serve domestic flights, as well as routes to the CIS countries and Europe.

IATA calls for Russia to implement global standards

he International Air Transport Association (IATA) called on the Russian Federation to implement global standards and best practices, in order to maximize the economic and social benefits generated by its growing air transport sector. Strong demand for connectivity is evident in over 12 percent growth this year for passenger services and robust growth in air freight. The latest estimates show that aviation and aviation-enabled tourism supports 1.1 million jobs and 1.6 percent of Russian GDP. The positive impact of global safety standards, including the IATA Operational Safety Audit, and investments in new aircraft are reflected in improved safety performance. There have been no fatal jet aircraft accidents by Russian carriers over the last three years. When looking at the allaccident data for 2016, however, there is still a gap between Russian performance (one accident per 400,000 flights) and the global average (one accident per 620,000 flights). Further strengthening of aviation’s economic and social benefits could be achieved with an even greater implementation of three key global standards. IATA calls on Russia to: • Ratify Montreal Protocol 2014 (MP14), an important global treaty to give greater powers to states to prosecute unruly passenger behavior • Volunteer for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), a global agreement for

AVIATION UPDATE

QUICK UPDATE a market-based measure to help achieve carbon-neutral growth for aviation by 2020. Seventy nations have already volunteered to implement CORSIA from 2021 • Ensure that the benefits of the recently-ratified Montreal Convention 99 treaty are felt, by ensuring customs and border authorities are ready to accept paperless cargo shipments “Russian aviation is on an upward curve. The new optimism can be seen in everything from the preparations to receive millions of visitors for the 2018 World Cup, to the desire to create a new generation of passenger jets. To write the next chapter in the successful development of Russian aviation, the country must continue to align with global standards and best practices. Ratification of MP14 and volunteering to join the CORSIA carbon offsetting agreement would send a powerful signal that Russia is taking a leadership position in global aviation affairs,” said Alexandre de Juniac, IATA’s Director General and CEO. De Juniac is in Russia meeting with government and business officials.

BAA Training provides ATR 42/72 training for Tanzanian airlines

AA Training, European standard aviation training centre, has announced gaining an approval to provide ATR 42/72 FFS services for Tanzanian aviation companies. After successful audit by Tanzanian Civil Aviation Authority (TCAA), ATR 42/72 type rating training and full flight simulator dry or wet lease is allowed to be provided at the training center in Vienna, Austria. Inspectors of TCAA audited the headquarters of BAA Training and ATR 42/72 full flight simulator in Austria. The infrastructure and network of instructors were tested to ensure the service alignment with aviation training standards. Representatives of the TCAA did not have any complaints regarding the detailed inspection.

“TCAA approval helps to support the further development of Tanzanian airlines and pilots by providing easier access to advanced

AVIATION UPDATE

aviation training. This will allow pilots to receive critical training in Europe with the network of highly trusted instructors, reliable and cost-effective training solutions. The wide network of services will enable customers and prospective pilots to take full advantage of the cooperation with BAA Training,” comments Egle Vaitkeviciute, CEO of BAA Training. By expanding its geographical capabilities, BAA Training has been successfully working with African market for over 5 years now. With the recent TCAA’s approval, airlines will be able to save substantially in terms of both costs and time spent on pilots training. This in turn will enable air carriers to train their cabin crew far quicker as the need to wait for training slots at overbooked simulators is diminished. The academy can already offer ATR 42/72 simulator services in 6 different countries located across 4 continents. Offering flexible and tailored solutions, BAA Training accumulated almost 1,000 hours on ATR 42/72 FFSs in 2016 alone. Additionally, the aviation academy provides training solutions for 18 types of aircraft on 54 FFSs located in 32 training spots across Europe, North and South Americas, Africa and Asia.

DAE announces resignation of Joramco CEO

ubai Aerospace Enterprise (DAE) Ltd. announced that Osama Fattaleh, CEO of Joramco has submitted his resignation to pursue his interests outside the industry. His permanent replacement will be announced in due course. Amjad Korshlow, CFO of Joramco will serve as acting CEO till a permanent replacement is named. “Mr Fattaleh played a key role in stabilizing Joramco’s performance during his tenure at the company. We wish him well in his future endeavors. In the meantime, Joramco is well served by a deep management team that is fully committed to providing world-class products and services to our clients. We look forward to the next chapter of Joramco’s growth under new leadership from within the industry,” said Joramco chairman and DAE managing director, Khalifa H. Al Daboos.

Mesa Airlines Reaches New Pilot Collective Bargaining Agreement

esa Airlines announces that its pilots, represented by the Air Line Pilots Association, International (ALPA), ratified a new four-year collective bargaining agreement. The agreement will be implemented in coordination with ALPA. “We are delighted to come to a long term collective bargaining agreement with our pilot group,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Airlines. “The agreement is the result of a truly cooperative effort by both parties to achieve a fair and equitable contract while protecting the long term future of the company and its ability to effectively compete in the marketplace. We are especially pleased that throughout the process, all parties maintained a professional, open, and friendly relationship. The new agreement provides Mesa the tools to both attract and retain qualified and widely sought after professional pilots that we will need to remain one of the top performing and fastest expanding regional airlines in the country. It is our strong belief that there are a number of significant new opportunities for Mesa to explore now that this agreement has been put in place. I would like to thank the dedicated members of the ALPA negotiating committee, the members of the Master Executive Council, Chairman and Captain Andy Hughes, as well as the professionals at ALPA for their critical role in achieving this landmark agreement. Most of all, I’d like to thank our pilots not only for passing this new collective bargaining agreement but for the tremendous work they do every day providing safe and reliable transportation to millions of passengers every month and their much appreciated support of Mesa Airlines.”

2017 AUGUST

QUICK UPDATE Over the last four years, Mesa has doubled in size and has hired over 1,000 pilots, more than any other regional airline. The new agreement will solidify the Company’s ability to support the expansion of its partnership with United Airlines, which is scheduled to add 12 new Embraer 175 aircraft in 2017 bringing the total number of aircraft operated as United Express to 80. Mesa also operates 64 aircraft under the American Eagle brand in partnership with American Airlines.

Emirates and flydubai sign partnership agreement

mirates and low-cost sister carrier flydubai entered an extensive partnership agreement to leverage each company’s network to scale up their operations and accelerate growth, without merging the management. The partnership goes beyond codesharing and includes integrated network collaboration with coordinated scheduling. The new model will give flydubai customers connectivity to Emirates’ worldwide destinations and for Emirates’ customers; it opens up flydubai robust regional network. Emirates has a wide-body fleet of 259 aircraft, flying to 157 destinations (including 16 cargo-only points). Flydubai operates 58 NewGeneration Boeing 737 aircraft to 95 destinations. The current combined network comprises 216 unique destination points. By 2022, the combined network of Emirates and flydubai is expected to reach 240 destinations, served by a combined fleet of 380 aircraft. The two airlines will also further develop their hub at Dubai International, aligning their systems and operations. “This is an exciting and significant development for Emirates, flydubai, and Dubai aviation,” said HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Group and Chairman of flydubai. “Both airlines have grown independently and successfully over the years, and this new partnership will unlock the immense value that the complementary models of both companies can bring to consumers, each airline, and to Dubai.”

AUGUST 2017

The partnership will be rolled out over the coming months, with the first enhanced code-sharing arrangements starting in the last quarter of 2017. Both carriers are fully owned by government through the Investment Corporation of Dubai, which has been looking to place both carriers under single structure for several months now, Bloomberg accounts. The deepening of the relationship between Emirates and flydubai was announced on June 21, 2017 at the Paris Air Show. Tim Clark, Emirates president, then said that the changes would affect connecting flights and joint scheduling decisions. The decision comes as the Middle East carriers are experiencing profit losses, with Emirates having just reported 70% - or $ 340 million – profit loss in the last financial year, which ended on March 31, 2017.

Drone registration now mandatory in Russia

tarting from July 5, amendments to the Russian Federation’s Air Code have come into force, meaning that now it is necessary to register unmanned aerial vehicles (UAVs) weighing from 250 grams to 30 kilograms. The drones will be registered with the ZaschitaInfoTrans, a state entity under control of the Ministry of Transport, according to RIA Novosti. Earlier it had been announced that the Federal Security Bureau will be the one to handle UAV registration. The federal law regulating the use of flying drones has been in power since March 2016. It applies not only to drones but also toy planes and helicopters.

Earlier, the organization developed a technology for identifying drones. Head of Sberbank Stanislav Kuznetsov said that the bank and Rosaviatsiya (Russia’s civil aviation authority) discussed regulating the use of drones for cash delivery. Aeroflot previously reported that it plans to use drones during the visual inspection of aircraft during repair work.

Airbus A350-1000 completes hot weather test

he A350-1000 test aircraft, MSN065, successfully completed the hot weather tests at the Al Ain International airport. The tests which took place from 4 to 7 July, involved the aircraft undergo extreme weather conditions at temperatures above 40 degrees Celsius. The objective of the tests is to check systems behaviour with a focus on the cabin, including cooling performance on ground. The aircraft successfully cleared all the set parameters demonstrating its maturity and readiness to operate in scorching weather conditions. Airbus has been using the Al Ain International Airport as its base for hot weather testing for a number of years now. The A350-1000 is the new member of the A350 XWB family, Airbus’ all-new midsize long-range aircraft family, together with the A330neo, offering unprecedented levels of operating efficiency, low noise and true long-range capability. The A350-1000 features a modified wing trailing-edge, new six-wheel main landing gears and more powerful Rolls-Royce Trent XWB-97 engines. The A350-1000 embodies all of the fuel efficiency and ‘Airspace’ cabin comfort of the original A350-900 – but with extra size perfectly tailored for customers on some of their busiest long-haul routes. Scheduled to enter into service in the fourth quarter of 2017, the aircraft currently has a total of 211 confirmed orders from 12 global customers.

AVIATION UPDATE

ENGINES SECTOIN

MTU Aero Engines, forecast raised in H1

TU Aero Engines released their half year results. The company generated revenues of €2,548.0 million in the first six months of 2017, up 11% on the previous year (€2,299.2 million). The group’s operating profit increased by 26% from €254.1 million to €320.8 million, resulting in an EBIT margin of 12.6%. Earnings after tax increased by 29% from €176.1 million to €227.5 million.

“The development in the first half year allows us to provide a more precise full-year guidance based on concrete targets rather than approximate ranges, and we can raise our forecast,” said CEO, Reiner Winkler. MTU expects revenues to reach some €5.3 billion by the end of 2017, which is higher than the original forecast of between €5.1 and €5.2 billion.

“We expect this positive trend in the commercial maintenance business to continue through to the end of the year, and that full-year revenues expressed in U.S. dollars will increase by a percentage in the mid-to-high teens,” said CEO Winkler.

Commercial maintenance business

Commercial engine business

In the first six months of 2017, the commercial maintenance business recorded the highest growth rate in terms of revenues, which increased by 32% to €1,181.0 million (€893.3 million). The main source of these revenues was the V2500 engine, which powers the Airbus A320 family.

In the six months to the end of June 2017, revenues in the commercial engine business grew by 4% from €1,200.9 million to €1,242.8 million. The V2500, the GEnx for the Boeing 787 and 747-8, and the PW1100G-JM for the A320neo accounted for the greatest share of these revenues.

“Q2 revenues amounted to €592.6 million, making this the seventh consecutive recordbreaking quarter for the commercial maintenance business,” added CPO, Michael Schreyögg.

“Spare parts sales developed particularly well,” added Winkler. “In U.S.-dollar terms, we expect this area of business to grow by a high single-digit percentage in 2017.”

Until now, MTU had reckoned with an increase in the region of 10%.

Previously, MTU’s outlook for spare parts sales foresaw a growth rate in the mid-single digit percentage range. Military engine business Revenues in the military engine business decreased by 28% to €172.5 million (€240.2 million). The EJ200 Eurofighter engine was the main source of these revenues. “In the light of delays in the EJ200 program and an outstanding after-market servicing agreement for the RB199 Tornado engine, we are expecting revenues in our military engine business to decrease by a percentage in the mid-teens range. We should be able to make up for some of the delays later this year, and then catch up fully in 2018,” said Schreyögg. At the beginning of the year, MTU had expected a decrease in military engine revenues in the high single-digit percentage range.

Storm Aviation introduces Base Maintenance services

torm Aviation, one of the leading line maintenance and technical training service providers in Europe, has announced the launch of light base maintenance services at its headquarter facilities at London-Stansted airport. The UK Part-145 and Part-147 approved organization will provide base maintenance services such as large component change programs, modifications and equalized scheduled base maintenance up to 1C-Check level to operators of Airbus A320 family and Boeing 757 aircraft. At its MRO base in the renowned wide-body capable Diamond hangar, Storm Aviation’s specialists shall offer 24/7 AOG support, major and minor modification services, engineering and maintenance planning, refurbishment and aircraft interior changes, as well as engine repair works and engine changes to airlines operating Airbus A319, A320, A321 and Boeing 757. “The introduction of in-hangar maintenance services is a natural step towards maintaining our leading position in the European MRO market. We see a clear tendency in the industry of airlines seeking a one-stop-shop solution rather than working with numerous providers on different projects. At the same time, it will further strengthen our partnership with existing clients across the continent,” comments Thomas Buckley, the CEO of Storm Aviation. “Our synergy with FL Technics and experienced base maintenance professionals working at their hangars in Jakarta, Kaunas and Vilnius will without a doubt give us a head start.” Storm Aviation is subsidiary of FL Technics, a global provider of aircraft maintenance, repair and overhaul services with hangars in Europe and Southeast Asia. The EASA Part-145, Part-M, Part-147, Part-21 certified company is part of Avia Solutions Group family – an international, publicly traded aviation holding company with over 20 subsidiaries worldwide.

AVIATION UPDATE

2017 AUGUST

ENGINES SECTOIN

Vision Systems introduces its electronically dimmable window

ollowing PPG and Vision Systems’ recent announcement to develop aircraft window shading applications, PPG will showcase Vision Systems’ dimmable solution Nuance V2, the second-generation Electronically Dimmable Window (EDW) at EAA AirVenture Oshkosh 2017, Wisconsin, USA. Vision Systems’ electronically dimmable solutions enable passengers to tune the tint of their window from clear to dark to regulate daylight, glare and heat entering in while preserving the view. Based on SPD technology (Suspended Particle Device), they provide infinite variable shading from fully clear to an extremely dark state and instant response time. Maximizing heat rejection and keeping the interior cooler on the tarmac, they contribute to a reduction of air conditioning consumption. These solutions block harmful UV light (and IR as an option), and their fabrication involves noise barriers to keep the cabin quieter. Vision Systems’ EDWs also deliver a weight reduction of about 30% compared with motorized shades, and do not add weight in comparison to a window with a manual shade. They have no moving parts as the electronics are fully integrated, reducing maintenance costs and downtime. They can be incorporated into flat or curved surfaces (2D, 3D), use plastic or composite glass. They can come as a whole to replace the entire window; installation is often limited to a simple mechanical operation, which is very advantageous for the aftermarket.

AUGUST 2017

Boeing signs a deal with China Airlines for MRO

oeing and China Airlines have signed a Memorandum of Understanding (MOU) to explore the development of the airline’s capabilities to serve the growing maintenance, repair and overhaul market in Asia. Boeing anticipates providing technical support and maintenance training to China Airlines to enhance its ability to service Boeing products. In addition, Boeing intends to work closely with China Airlines to qualify it as an approved Boeing supplier, which will enable the airline to bid for work on Boeing’s wide-ranging products and services. “We are pleased to further extend our partnership with The Boeing Company,” said Ho Nuan-Hsuan, Chairman, China Airlines. “This MOU with Boeing provides a platform that will allow us to enhance the world-class capabilities of China Airlines Group. We look forward to contributing to the steady growth of commercial aviation in Taiwan, as well as the rest of Asia.” With a growing number of airlines in the Asia-Pacific region selecting Boeing airplanes, China Airlines will have the opportunity to become a qualified Boeing Global Fleet Care service provider in Asia. In addition, Boeing aims to aid China Airlines’ qualification as a potential Boeing Converted Freighter (BCF) conversion site, as well as explore training opportunities to develop the airline’s capability as an airframe modification supplier for Boeing’s airplanes. “China Airlines has been a very important partner to Boeing for more than five decades and this mutually beneficial collaboration will further enhance their capabilities in maintenance and engineering,” said Ihssane Mounir, senior vice president, Sales and Marketing, Boeing Commercial Airplanes. “This relationship will allow China Airlines to develop and deliver world-class maintenance service to global airline customers, while also adding value to Boeing’s network of global supplier partners.” With nearly 40 percent of the future market demand for commercial airplanes coming from the Asia-Pacific region, the collaboration with China Airlines in Boeing’s largest market will provide flexibility for global airline customers, while also contributing to Taiwan’s growing commercial aviation industry. “We are proud to have the support of customers like China Airlines as we enter into this new chapter of services excellence under Boeing Global Services,” said Mike Fleming, vice president Commercial Services for Boeing Global Services. “By working together, we can provide tailored and cost-effective solutions within the commercial aviation industry.”

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ENGINES SECTOIN

EASA issues emergency AD for SSJ stabilizer inspection

for approved repair instructions, if a crack, fastener failure or corrosion is detected during the NDT inspection. Earlier in 2017, Sukhoi SuperJets were grounded due to the need to inspect for possible defects in the plane’s stabilizer attachment unit.

n July 25, the emergency airworthiness directive (AD) issued by European Aviation Safety Agency (EASA) came into power, requiring airlines operating Russian-made Sukhoi Superjet 100-95B aircraft to inspect the horizontal stabilizers for possible cracks. In the directive, EASA reported that cracks had been found on Sukhoi Superjet 100-95B aircraft in service in the rear spar of the horizontal stabilizer between ribs 0, 1 and 2. According to the document, such a condition, if not detected and corrected on time, might affect the structural integrity of the horizontal stabilizer. The directive calls for a non-destructive testing (NDT) borescope inspection of the horizontal stabilizer, before exceeding 1300 flight cycles or within 7 calendar days after the effective date of the airworthiness directive (whichever occurs later), and, thereafter, at intervals not to exceed 300 FC. Operators are required to contact Sukhoi Civil Aircraft

Joramco supports Tunisair A330s with C checks

oramco has recently supported Tunis flag carrier, Tunisair, with two heavy checks for its A330 aircraft. Aircraft were delivered back to the airline after accomplishing C check tasks in addition to several ADs and SBs. The two layovers took place during May of this year. “We are pleased that Tunisair has selected Joramco to perform these maintenance activities,” said Osama Fattaleh, CEO of Joramco. “This collaboration reaffirms Joramco’s strength, expertise and know-how on the A330 and our drive to become the MRO of choice for operators in the Middle East, Africa, South Asia, and Europe”. As the principal airline within a state controlled Group that includes few entities, Tunisair operates scheduled services from its Tunis Carthage International Airport main base to destinations throughout the Middle East and North Africa, West Africa and Europe. A solitary transatlantic route serves Montreal using Airbus A330-200 aircraft. Tunisair Express is a subsidiary domestic

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and regional short-haul carrier within the Group. Other subsidiaries include Catering Tunisia, an airline catering company, ground handling concern Tunisair Handling and MRO services provider Tunisair Technics, an EASA Part 145 certified which services the needs of Tunisair and Tunisair Express as well as third parties. With more than 50 years of experience, Joramco has built a sound track record as a leading commercial aircraft maintenance, repair and overhaul (MRO) facility serving a wide range of customers in the Middle East, Europe, South Asia, Africa, Russia and the

CIS countries, offering services on several aircraft models from the Airbus, Boeing, and Embraer fleets. Strategically located at a free zone area in Queen Alia International Airport in Amman-Jordan, with an infrastructure that includes 5 hangers that can accommodate up to 10 aircraft; Joramco is certified by a number of international & local regulatory authorities to include the Jordan’s Civil Aviation Regulatory Commission (JCARC), U.S. Federal Aviation Administration (FAA), and the European Aviation Safety Agency (EASA).

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ENGINES SECTOIN

AAR Opens New Supply Chain Hub in China

AR, a provider of aviation services to airlines, original equipment manufacturers (OEMs) and MROs, has opened a parts warehouse in Shanghai. The new supply chain hub was established to expedite the delivery of crucial aircraft components to operators and MROs in China. “China is forecast to be the fastest-growing aviation market in the world. As a result, serving and capturing aftermarket opportunities in the Chinese market is of the highest priority for our commercial OEM partners. This new Shanghai warehouse will enhance the service we provide customers in China and, in turn, improve our ability to execute China growth strategies jointly developed with our OEM partners,” said Senior Vice President of AAR OEM Aftermarket Solutions, Eric Young.

AAR’s Shanghai warehouse will stock factory-new airframe and engine components from OEMs including Eaton, Unison, UTAS, Meggitt and Lord, fulfilling the needs of just about every type of aircraft operating in China today. This new China facility follows the recent opening of AAR’s Dubai warehouse. These two new additions to the Company’s global supply-chain network are a reflection of AAR’s focus on serving OEM partners’ aftermarket needs and goals.

GA Telesis and Tokyo Century launch $1 billion leasing initiative

G StandardAero to purchase Vector Aerospace Holding SAS from Airbus

tandardAero Aviation Holdings and Airbus SE announced that they have entered into exclusive negotiations with respect to an acquisition by StandardAero of Vector Aerospace Holding SAS from Airbus. Vector is a global aerospace maintenance, repair and overhaul company, providing responsive, quality support for turbine engines, components, fixed- and rotary-wing aircraft. A truly international company, it generated revenues of US$ 704.8 million in 2016 and employs approximately 2,200 people in 22 locations across Canada, the United States, the United Kingdom, France, Kenya, South Africa, Australia and Singapore. The proposed transaction is subject to workers’ council consultation, signing of definitive agreements and customary approvals, such as regulatory clearances.

AUGUST 2017

A Telesis and Tokyo Century Corporation announced the launch of a new technology engine financing initiative focusing on a select group of new technology jet engines. The new joint initiative is hoped to enhance GA Telesis’ current technology engine leasing business by implementing a more competitive cost of capital for longer-term and more structured transactions.

The target portfolio will consist of the following engine models: General Electric GEnx, Rolls-Royce Trent 1000 and Trent XWB, Pratt & Whitney GTF and CFM International LEAP engines. GA Telesis and Tokyo Century are targeting the origination and closing of $1 billion new-technology engine transactions over the next 24 months. “This is an unprecedented time in the history of aviation where each engine manufacturer is delivering a new technology engine simultaneously," said Abdol Moabery, CEO of GA Telesis. “With over ten thousand new-technology engines in the backlog, we are prepared to help our airline customers by providing them a customized financing solution to meet their needs,” he added. “As a company that has built a global reputation for its leasing products, the initiative will continue to define Tokyo Century Corporation’s commitment to the aviation industry,” said Koichi Nakajima, deputy president of Tokyo Century. We are very enthusiastic about the market’s demand for leasing products such as this and we are committed to growing this,” he added.

AVIATION UPDATE

DEFENCE & MILITARY

MAKS-2017: PAKFA, MiG-35 and other new tech highlights

AKS-2017 Air Show, which has concluded on July 23, has exposed many of fascinating tech pieces, including improved and brand new aircraft. The organizers of the show also made sure the crowd can observe the innovation in a wellprepared spectacle and so leaving some memorable highlights. One of the notable pieces are the fifthgeneration multi purpose fighter jets Sukhoi PAK-FA T-50. These aircraft are going to replace Su-27 in front line tactical aviation. 12 of them are expected to be delivered to Russian Air Force by 2019. MiG-35 with new design and modifications has also conducted the first

public flight. The enhanced version of the aircraft which has conducted the first flight in 2007 is the successor of MiG-29 and is also expected to get the attention of foreign buyers like India. The helicopter industry also presented some innovative products, including an upgraded version of the Mi-28NE, which features twin control for both pilots and mas-mounted radar, also new Mi-171Sh-VN, constructed for Special Forces with regard

to experience acquired from the conflict in Syria. The drone industry also received attention during the airshow. Russian Helicopters displayed the prototypes of drones built for ice observation and operation in the arctic environment. The VRT300 Arctic Supervision is designed to assist Northeast Passage transport system and explore the Arctic Region.

Boeing Team Completes KC-46 Tanker Electromagnetic Testing

Boeing led team, including U.S. Air Force and Naval Air Systems Command representatives, recently completed KC-46 tanker electromagnetic testing. This testing evaluates the aircraft’s ability to safely operate through electromagnetic fields produced by radars, radio towers and other systems under mission conditions. “The KC-46 tanker is protected by various hardening and shielding technologies designed into the aircraft to negate any effects on the aircraft,” said Mike Gibbons, Boeing KC-46 vice president and program manager. “This successful effort retires one of the key risks on the program.” Testing was conducted on the Naval Air Station Patuxent River, Md., electromagnetic

AVIATION UPDATE

pulse (EMP) and Naval Electromagnetic Radiation Facility pads and also in the Benefield Anechoic Facility at Edwards Air Force Base, Calif. During tests on the EMP pad at Patuxent River, the program’s second low-rate initial production KC-46 received pulses from a large coil/transformer situated above the aircraft. The outdoor simulation

was designed to test and evaluate the KC46’s EMP protection while in flight. The KC-46A is a multirole tanker that is designed to refuel all allied and coalition military aircraft compatible with international aerial refueling procedures and can carry passengers, cargo and patients.

2017 AUGUST

DEFENCE & MILITARY

Israel’s IAI will share UAV know-how with India

sraeli company Israel Aerospace Industries (IAI), together with Indian partners, is preparing to participate in the tender of the Ministry of Defense of India for unmanned aerial vehicles. IAI has signed cooperation agreements with India’s Dynamatic Technologies and Elcom Systems regarding the production, assembly and maintenance of IAI’s unmanned aerial systems in India. It is noted that IAI plans to offer Heron drones capable of long-duration flight to India. IAI Executive Vice President Shaul Shahar said that India is one of Israel’s key strategic partners, acquiring Israeli unmanned systems for 25 years. He explained that the decision to transfer unmanned technologies stems from the great importance his

company puts on Indian customers. It is reported that agreements including the transfer of Israeli technology to India were reached several months ago, but their formal signing took place during the visit of Indian Prime Minister Narendra Modi to Israel. Israel believes that the concluded agreements will improve the positions of Israeli developers of unmanned aerial systems in the competition for orders of the Ministry of Defense of India, taking into account the country’s Make in India program.

a missile defense test led by the U.S. Missile Defense Agency with critical support provided by the U.S. Army. The THAAD system, located at Pacific Spaceport Complex Alaska in Kodiak, Alaska, detected, tracked and intercepted a threat representative intermediate-range ballistic missile (IRBM) target. The test was the first IRBM intercept for THAAD. During the test, designated Flight Test THAAD (FTT)-18, the THAAD radar first detected, acquired and tracked the target. The THAAD system then developed a fire control solution and launched an interceptor that destroyed the target’s reentry vehicle with sheer force of a direct collision.

THAAD system intercepts target in missile defense flight test

T 20

he Lockheed Martin built Terminal High Altitude Area Defense (THAAD) system successfully intercepted a target in

AUGUST 2017

“Our THAAD system performed flawlessly in today’s test and we are proud to support the Missile Defense Agency and U.S. Army as they demonstrate the system’s unmatched capabilities,” said Richard McDaniel, vice president of Upper Tier Integrated Air and Missile Defense Systems at Lockheed Martin. “With this successful test, the THAAD system continues to prove its ability to intercept and destroy many classes of the ballistic missile threat to protect citizens, deployed forces, allies and international partners around the globe.” This was the 14th successful intercept in 14 attempts for the THAAD system since 2005. The THAAD system uses hit-to-kill technology to destroy a threat with direct impact to neutralize lethal threats before they reach protected assets on the ground. The system is rapidly deployable, mobile and also interoperable with other Ballistic Missile Defense System (BMDS) elements, including Patriot/PAC3, Aegis, forward-based sensors and the Command, Control, Battle Management and Communications system.

AVIATION UPDATE

DEFENCE & MILITARY

Crash of military C-130 kills 16 in Mississippi

he crash of a Marine Corps plane in the state of Mississippi took the lives of all sixteen people on board. The news was announced via the official Twitter page of the Marine Corps in the following manner: “A USMC KC-130 mishap occurred the evening of July 10. Further information will be released as available.” Officials have found sixteen bodies on the crash scene so far. ‘Most of them are going to be Marines,’ LeFlore County (where the crash happened) Sheriff Ricky Banks told reporters. The plane was carrying ammunition, which means that it might be especially difficult to deal with the consequences of the crash. The KC-130 that crashed is a tanker variant of the Lockheed C-130 Hercules, a universally used plane „With more than 1.2 million hours of flying combat, humanitarian, special operations, aerial refueling, firefighting, and search and rescue missions around the world“, according to the manufacturer‘s official page.

Russian MoD finds replacement for Czech L-39

R-10, the newly built indigenous single-engine jet trainer aircraft with forward-swept wings will be delivered to the Armed Forces of the Ministry of Defense of the Russian Federation at the end of 2017, where it has been nicknamed a "strange airplane", according to Izvestia. "Strange airplane" SR-10 is a small single-engine jet, designed for primary flight training of cadets in flight schools. Due to the relatively small weight of the two-seater, the aircraft is able to reach speeds of up to 800 km/h and reach an altitude of 11 km. The aircraft was developed by a private company Modern Aircraft Technologies, which, together with the Defense Ministry and Smolensk Aviation Plant, is finalizing a contract for the delivery of the aircraft. SR10 will replace the fleet of old L-39 Czech training aircraft, the delivery of which began in 1980.

Germany to leave Incirlik airbase in Turkey

he withdrawal of the German military contingent began on July 9 from the Incirlik airbase in Turkey, Der Spiegel wrote referring to the official information of the German Ministry of Defense. According to the German media outlet, first of all, it is planned to transfer fueling aircraft from Turkey to Jordan, after that moving Tornado multirole bombers. Almost 260 German soldiers served on the Turkish base, helping operate flights within the framework of the international coalition's mission against ISIS. The decision to withdraw the contingent was made after German MPs were repeatedly denied the right to visit the servicemen on the base. Such a decision by the Turkish authorities was explained by Germany's reluctance to extradite Turkish military officers suspected of attempting a coup in July 2016.

AVIATION UPDATE

2017 AUGUST

CARGO SECTION

Russia to modernize Malaysian MiG-29 jets

ussia intends to sign a contract with Malaysia in the framework of MAKS-2017 regarding the modernization of MiG-29 fighter jets which are in service with the Royal Malaysian Air Force (RMAF), said Dmitry Shugaev, director of the Federal Armed Forces Service of Russia. â&#x20AC;&#x153;We also plan to finalize such a serious process as the modernization of the MiG-29 for the Royal Malaysian Air Force,â&#x20AC;? said Shugaev at the MAKS-2017 air show in Zhukovsky outside Moscow. According to him, the head of RMAF is present at the air show and the Russian side hopes to successfully conclude the talks.

Russia to expand its airbase in Syria

n July 6, Russian President Vladimir Putin submitted to the State Duma an additional protocol to the agreement on the Russian airbase in Syria, according to Vedomosti. The document was signed in Damascus in January 2017 and regulates a number of issues that were not reflected in the basic agreement on the establishment of the airbase, signed in August 2015 and ratified by the State Duma in August 2016. Leonid Slutsky, the chairman of the State Duma's international affairs committee, had earlier declared that the MPs will consider the issue of ratification of the protocol on July 14. According to the text of the document, the territory of the Russian Khmeimim airbase will expand. The protocol establishes that Russia and Syria give each other free access to the general infrastructure of the air base (which is located on the territory of a civilian airport), the Russian side can hire both Russian and Syrian contractors, Russian aircraft can be involved in search and rescue operations in the interests of saving the crews of Syrian planes and helicopters, as well as provide the Syrian side with information about the air and meteorological conditions the Syrian province of Latakia.

Rostec and Indonesia deal on countertrade for Su-35 contract

ussian State Corporation Rostec and Indonesian Enterprises State Trading Company concluded a memorandum providing the cooperation of parties for the implementation of the countertrade program under the contract for the supply of Su-35 multirole fighters to Indonesia, according to Russian media. "As part of supporting the export of goods produced in Indonesia, Rostec is committed to ensuring the implementation of an appropriate counter-trade program within the framework of contractual obligations. At the same time, the Russian side retains the right to choose goods and trade partners in Indonesia," the report said. According to the state corporation, the agreement provides for expansion of supplies of the most promising Indonesian goods to Russia. At the same time, the list of products will be agreed by the members of the working group, which the parties created to implement the agreement. Earlier, Indonesian Defense Minister Reimizard Rikudu said that the Indonesian government plans to acquire 11 Su-35 fighters in Russia to strengthen the country's air defense. "We agreed to supply within two years," the Indonesian newspaper Tempo.co quoted the minister as saying. Indonesia plans to buy the Su-35 to replace the American F-5E/F Tiger II. Within the contract, Russia undertakes obligations under Indonesian law to provide a barter deal for the supply of Su-35.

The protocol also regulates the question of how and who should respond to violations by Syrian and Russian citizens on the territory of the base and beyond. Unlike the termless agreement of 2015, the protocol is set to for 49 years, if the parties do not have objections.

AUGUST 2017

AVIATION UPDATE

CARGO SECTION

Boeing, FedEx to test fuel-saving tech with ‘ecoDemonstrator’ aircraft

irfreight is notorious for being one of most polluting modes of transportation, so news that Boeing and FedEx Express are teaming up to test fuel-saving technology is welcome news in an industry that has been slow to adapt. As part of the 38-year-old “ecoDemonstrator” program, Boeing will install experimental technology on a FedEx 777F to test propulsion advancements and flight-deck innovations. The ecoDemonstrator program converts aircraft into flying aeronautics laboratories, designed to improve the environmental performance and safety of future airplanes. “The ecoDemonstrator program is focused on harvesting exciting new technologies that will benefit our airline customers, the flying public and the environment,” explained Mike Sinnett, vice president of Boeing Commercial Airplanes Product Development.

This latest round of testing will study the effectiveness of Boeing’s compact thrust reverser, which is designed to save fuel. The program will also test flight-deck systems that can streamline operations into and out of busy airports, and prototypes of airplane parts that reduce material waste. Perhaps the most visible technology to come out of the ecoDemonstrator program is the 737 MAX Advanced Technology Winglet, which improves fuel efficiency by up to 1.8 percent. Launched in cooperation with American Airlines and the FAA in 2012, Boeing tested aerodynamic performance of natural laminar flow technology, which is a fancy way of describing those upturned winglets that are now a ubiquitous modification on many of Boeing’s aircraft.

Air France- KLM doubles down on e-commerce strategy

ir France-KLM opened what it is calling “the world’s first” combinationc a r r i e r- o p e r a t e d sorting system capable of handling package-level freight. Air France-KLM has pursued a number of cargo strategies over the years with limited success, however this new strategy suggests that the carrier’s ambitions are still intact. The new facility “allows us to keep pace with the rapid increase in post and express consignments,” said Marcel de Nooijer, executive vice president of KLM Cargo. “The system is faster and smarter, allowing us to offer better service to our customers,” adding that “e-commerce is a fast-growing branch in the cargo industry.” The package facility also dovetails with 12Send, a new intra-Europe same-day delivery service launched in cooperation with Netherlandsbased Parcel International. The service is part of an effort by Air FranceKLM to utilize more of its bellyhold capacity, especially on its extensive European network. An initial pilot program for same-day service was launched on KLM routes between Amsterdam (AMS) and Barcelona (BCN) in October. Judging by the pictures, the new facility is quite similar (if on a smaller scale) to some of the integrator hubs. With combination carriers reaching for a larger share of growing e-commerce volumes, this latest development could put Air France-KLM ahead of the pack.

AVIATION UPDATE

DHL, Wärtsilä announce successful completion of warehouse robotics experiment

HL and Wärtsilä, a Finnish manufacturer of power sources and other equipment, completed joint testing of mobile robots from Fetch Robotics at one of Wärtsilä’s warehouses in Kampen, the Netherlands. The trial found that robots travelled more than 30 kilometers per day, contributed to productivity, and made for a safer overall work environment by taking on higher-risk tasks. The project tested the Fetch Robotics machines across a variety of warehousing functions, to understand where robots can add value and to learn about the technology interface between human employees and robots. The mobile robot system excelled at point-to-point material transport, where movement between fixed points lends itself to automation. “The robots are designed to work alongside employees and to relieve them from physically strenuous tasks,” said Denis Niezgoda, Robotics Accelerator lead at DHL Customer Solutions and Innovation. “Fetch Robots can run for up to nine hours on a single charge, after which they independently return to their charging units. The autonomous mobile robots have a loading capacity of 78 kilograms and move at up to 4.4 miles per hour. “The intelligent robots recognize their location and surroundings, and can differentiate between dynamic and static obstacles, thus enabling evasive action to work safely with and around people,” DHL said.

2017 AUGUST

CARGO SECTION

Hactl wins contract for Melbourne-Hong Kong Virgin Australia route

Upgraded Çelebi Delhi Cargo Terminal goes live with Kale Logistics’ tech

urkish aviation service company Çelebi Ground Handling’s revamped Delhi Cargo Terminal is operational, kicking off a 25-year contract to develop, modernize, finance and operate the airport’s cargo terminal.

ong Kong Air Cargo Terminals Limited (Hactl) was appointed as cargo ground handler for Virgin Australia’s new services from Melbourne to Hong Kong that started on July 5. At five weekly Airbus A330-200 arrivals, each with 14 tonnes of bellyhold capacity a piece, Virgin Australia could move a significant share of the rising cargo volumes between the two markets. “There is strong demand for air cargo capacity from Hong Kong to Australia driven increasingly by e-commerce,” explained Hactl Chief Executive Mark Whitehead. “The new services are well-placed to tap into growing perishables traffic from Australia, destined for Hong Kong and China.” Hactl is Hong Kong’s largest independent cargo handler, serving more than 100 airlines, and it has handled Virgin Atlantic’s London Heathrow – Hong Kong cargo since flights began in 1994. Cargo sales on the Melbourne to Hong Kong route will be marketed by Virgin Atlantic Cargo.

DHL Supply Chain takes over Cathay Pacific MRO logistics

ten-year contract went into effect today that puts DHL Supply Chain in charge of Cathay Pacific and Cathay Dragon’s storage, warehousing and domestic transportation of aircraft service parts at Hong Kong International Airport (HKA).

With Delhi’s volumes and complexity, Çelebi brought Kale Logistics Solutions on board to automate the terminal’s operations, using Kale’s Galaxy Cargo Management system. Kale plans to phase in its entire suite of Galaxy Air Cargo management software, including its EXIM operations, Warehouse Management, UD, Invoice and Accounts and Domestic Operations. Çelebi’s Delhi operations are the company’s largest, even surpassing the ground handler’s Istanbul Ataturk Airport operations. “Modernday freight challenges need technology to enable innovative practices to move businesses forward,” said Ramesh Mamidala, CEO of Çelebi Delhi Cargo Terminal Management. “With our domestic operations going live on Galaxy, we look forward to greater automation of our operational processes.” While international traffic rises, India is also seeing a surge in domestic traffic as peripheral cities expand and surrounding states experience e-commerce growth, driving up domestic freight movement, which, in turn, makes Delhi a national freight hub.

The contract will see DHL Supply Chain take overall responsibility for the storage, warehousing and domestic transportation of 80,000 specific aviation part types, components and equipment used to maintain Cathay Pacific and Cathay Dragon’s combined fleet of 180 aircraft. Cathay Pacific’s director of engineering, Neil Glenn, explained that handing supply-chain operations over to DHL “allows all three parties to concentrate on their specific core capabilities, namely: airline management (Cathay Pacific), aircraft maintenance (HAECO) and, now, DHL will be responsible for the maintenance, repair and overhaul (MRO) supply chain management.” Meeting Cathay’s needs requires a team of 120 DHL Supply Chain specialists working around the clock, managing more than 90,000 square feet of warehousing space. The Cathay contract is part of DHL Supply Chain’s push into the aviation sector. The logistics company inked a similar MRO deal last month with Etihad Airways Engineering. “With Hong Kong taking the lead, we are looking at extending this capability in the Greater China region, particularly mainland China and Taiwan,” said Yin Zou, CEO, DHL Supply Chain Greater China.

AUGUST 2017

AVIATION UPDATE

CARGO SECTION

Hyperloop One completes ‘breakthrough’ test in Nevada desert

yperloop One announced the completion of a “breakthrough” test that proves the viability of the low-pressure transportation system for both people and cargo. “For the first time in over 100 years, a new mode of transportation has been introduced. Hyperloop is real, and it’s here now,” declared Shervin Pishevar, co-founder and executive chairman of Hyper loop One. Last week’s test was the first of a multi-phase program, and was privately conducted at the company’s test track in the Nevada desert. The vehicle coasted above the first portion of the track for 5.3 seconds using magnetic levitation, reached nearly 2Gs of acceleration (producing the effect of twice the force of Earth’s gravity) and achieved the target speed of 70 miles per hour (mph). In the next phase of testing, the target speed will increase to 250 mph. The next phase of testing will move the vehicle to a longer track, allowing it to achieve faster speeds. “Hyperloop One has accomplished what no one has done before by successfully testing the first full-scale Hyperloop system,” Pishevar said. “By achieving full vacuum, we essentially invented our own sky in a tube, as if you’re flying at 200,000 feet in the air.” A prototype of the pod that the company hopes to use to transport passengers and cargo inside the tube was also unveiled last week. The 28-foot-long pod is constructed of structural aluminum and lightweight carbon fiber. While hyperloop technology could be a transportation game-changer, the mode has its detractors. One common criticism of the technology is the cost of infrastructure required to scale hyperloop transport up to a level where it is economically meaningful. Leaked documents obtained by Forbes showed that, by Hyperloop One’s own estimates the cost of a potential 107-mile route in the Bay Area would run between US$9 billion and $13 billion – that’s between $84 million and $121 million per mile.

DHL eCommerce launches green e-commerce deliveries in Vietnam

HL eCommerce has launched a domestic delivery service in Vietnam, helping small, medium and large e-tailers by handling cash-on-delivery services for customers that lack online payment ability. The e-commerce delivery includes next-day delivery across Ho Chi Minh City, Hanoi and other primary urban areas. Only 15 percent of Vietnam’s e-commerce shoppers paid online in 2016, making cash-on-delivery a must-have feature for e-commerce to succeed,” said Thomas Harris, managing director of DHL eCommerce Vietnam. Collecting cash payments, with next-day cash remittance and returns, lowers barriers to entry for smaller retailers. DHL eCommerce Vietnam manages its deliveries out of depots located throughout the country. The current fleet of vehicles includes vans and standard bicycles, and now includes a range of electric bikes. DHL plans to add to the green fleet as the network grows. “We are optimistic that environmentally friendly delivery methods, such as electric vehicles, will be the future of domestic B2C delivery,” Harris said.

Double-digit revenue growth at United Cargo confirms strong market

urging volumes at United Cargo pushed cargo revenues up 22.1 percent, yearover-year, to US$254 million in the second quarter of 2017, pushing the year-to-date growth rate and revenue numbers up to 17.9 percent, y-o-y, and $474 million, respectively. Comprising of less than 3 percent of United’s total half-year revenues, cargo remains a small percentage of the carrier’s total operations, but the growth speaks to an overall trend in North American cargo. Delta Cargo’s second quarter revenue, for instance, was up 10.9 percent, y-o-y, to $183 million. United’s revenues per cargo ton mile also moved up slightly, rising 0.2 percent to 30.68 cents, reflecting improvements in airfreight rates in the broader market. The latest results confirm that United is riding a turnaround that got underway sometime in 2014, following years of lackluster results. In addition to rising demand, United has taken steps to boost sales, such as a joint venture that it launched with Lufthansa Cargo in April, covering a wide-range of cargo cooperation on routes between the United States and Europe. The trans-Atlantic deal, first proposed in 2015, covers cooperation on available capacity and alignment of booking and handling processes.

AVIATION UPDATE

2017 AUGUST

CARGO SECTION

New Istanbul Airport inks €250-million cargo service deals

ith Turkish Cargo posting a 30 percent, year-over-year, jump in 2016, to 3.6 billion freight tonne kilometers (FTKs), the scale of Istanbul’s new six-runway airport is suddenly looking more pragmatic. On the logistics side, the country’s new airport is nearing completion, setting the stage for a new global cargo hub that could present real competition to freight hubs to the south, such as Dubai and Abu Dhabi. IGA, the operator of a massive new airport under construction on the northwest outskirts of Istanbul, near the Black Sea coast, announced that it has inked cargo service deals worth a total of €250 million, with six local freight and logistics companies. The companies, including a national integrator, MNG, PTT (the Turkish postal service) and ground handler Çelebi all signed 25-year contracts that allow them to build and operate their own facilities at the airport’s “Cargo City and Ground Services Campus.” The new airport, about 35 kilometers away on the European side of Istanbul, has designated 1.4 million square meters for

cargo operations, including cargo aircraft parking areas. An additional 150,000 square meters has been allocated for ground services. IGA chair Hüseyin Keskin said that the new airport will have a cargo capacity of 2.5 million tonnes during its initial phase of operation in 2018, eventually scaling up to 5.5 million tonnes once all four phases of construction are completed. Turkish Cargo seems to be positioning itself to move fast once the new airport is operational. In the first half of 2017, the

carrier’s chief cargo officer, Turhan Ozen, said that it had “focused on increasing its freighter fleet adding four new freighters,” two of which are 747Fs and nine A33-200fs as well as some older A310 freighters, bringing the total number of freighters to 15. The current overcrowded Ataturk Airport (IST) hub, just west of the city, has 1.2 million tonnes of capacity, and Turkish Cargo estimates that it is using upwards of 75 percent of the available space. Once the new airport opens, IST is expected to be closed.

Cathay Pacific to buy out DHL’s minority share in Air Hong Kong

athay Pacific and DHL entered into a non-binding memorandum of understanding (MOU) that positions Cathay Pacific Group to purchase DHL Group’s 40 percent stake in Air Hong Kong (AHK), making AHK a wholly owned subsidiary of Cathay Pacific, which already owns the other 60 percent. Under the current non-binding terms, set to take effect on Dec., 31, 2018, DHL would acquire AHK’s eight A300-600 freighters, which would then be leased back to AHK following the transaction. The MOU then stipulates that AHK will operate “an agreed freighter network to destinations in Asia for DHL and will receive agreed service fees and reimbursement of operating expenses.”

Nagoya, Seoul, Shanghai, Beijing and Manila, the carrier said.

As the deal stands, after all the changes are complete, the same planes will be flying the same routes for the same customer. AHK is an express operator with DHL as its main customer, billing itself as, “the only dedicated freighter airline based in Hong Kong.” AHK serves Bangkok, Penang, Singapore, Taipei, Narita, Kansai,

News of the acquisition comes in the wake of reports of a tough year at Cathay Pacific. The Hong Kong-based carrier’s cargo division, however, has done markedly better than the overall operation, so Cathay said it will continue to emphasize its cargo side.

AUGUST 2017

AVIATION UPDATE

AVIATION JOBS

Give a flying start to your career Announcing walk-in interviews for cabin crew Jet Airways, India’s premier airline flies to 22 international destinations and 51 domestic destinations. Come, be a part of our cabin crew and fly the globe.

Eligibility criteria to attend the interview • Age - 18 and 27 years. • Edu. Qualification - Appeared for or HSC Pass (10 plus 2). • Marital status - Unmarried. • Height - Male 170 cms (min) / Female 157 cms (min). • Weight - In proportion to height. • Language skills - Fluency in English and Hindi. • Physical features - Pleasing personality and good eyesight. • Interactive skills - Excellent communication and good interpersonal skills. Must posses a valid Indian passport and must carry resume with 1 passport size and 1 full length photo. Dress code: Male Candidates: Western formals with a tie. Female candidates - Formal blouse or shirt with a knee length skirt.

City

Interview Date

Time (Hrs)

Delhi

Aug 3, 2017

1000 hrs to 1400 hrs

Constitution Club of India, Rafi Marg, New Delhi.

Pune

Aug 4, 2017

1000 hrs to 1400 hrs

Novotel, Pune Nagar Road, Weikfield IT Infopark, Survey No. 30/3, Ramwad, Viman Nagar Pune.

Mumbai

Aug 5, 2017

1000 hrs to 1400 hrs

Kaledonia (HDIL Building), 4th Floor, Off Western Express Highway, Sahar Road, Andheri East, Near Andheri East Railway Station, Mumbai.

Vadodra

Aug 8, 2017

1100 hrs to 1500 hrs

Hotel Suba Elite, Fatehgunj Road, Vadodara.

Kolkata

Aug 11, 2017

1000 hrs to 1400 hrs

The Circle Club, Crossing of VIP Road, Rajarhat, New Town Express Way, Opp. Charnock Hospital, Kolkata Airport, Kolkata.

Chandigarh

Aug 16, 2017

0900 hrs to 1300 hrs

The Golden Plaza Hotel, Paras Downtown Square Zirakpur, Chandigarh.

Guwahati

Aug 17, 2017

1100 hrs to 1400 hrs*

Indian Skills Academy - Level 5. Boraj Arcade, Opposite Ayursundra Hospital, Near Guwahati Eye Clinic, GS Road Ulubari, Guwahati.

Mumbai

Aug 19, 2017

1000 hrs to 1400 hrs

Kaledonia (HDIL Building), 4th Floor, Off Western Express Highway, Sahar Road, Andheri East, Near Andheri East Railway Station, Mumbai.

Delhi

Aug 21, 2017

1000 hrs to 1400 hrs

Constitution Club of India, Rafi Marg, New Delhi.

Siliguri

Aug 29, 2017

1000 hrs to 1400 hrs

Club Montana Vista, By Conclave E Zone,Uttorayon, New Township, Matigara NH 31,Siliguri.

Venue

Experienced Cabin Crew and those unable to attend can apply at jetairways.com/careers. For more information, visit jetairways.com/careers or log on to facebook.com/jetairways. Source: Jetairways.com

AVIATION UPDATE

2017 AUGUST

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