AviTrader_Monthly_MRO_e-Magazine_2017-02

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Finance News 10 B/E Aerospace reports 2016 financial results B/E Aerospace announced its full year and fourth-quarter 2016 financial results. Full year 2016 revenues of US$2.9bn increased 7.4% as compared with the prior year. Full year 2016 bookings were approximately US$3.3bn and the book-to-bill ratio was 1.1 to 1. The company’s 2016 full-year and fourth-quarter results include after-tax charges totaling approximately US$20.0m related to the pending Rockwell Collins merger transaction and restructuring charges. On a GAAP basis, full-year 2016 operating earnings of US$506.6m increased 12.0% as compared with the prior year. Net earnings of US$311.1m increased 8.9% as compared with the prior year. As of December 31, 2016, backlog increased by approximately US$300m, as compared with December 31, 2015, to approximately US$3.5bn, while awarded but unbooked backlog was approximately US$5.6bn. Total backlog, both booked, and awarded but unbooked, was approximately US$9.1bn. Government of Canada will provide CA$372.5m in repayable contributions to Bombardier The Government of Canada is committed to keeping Canada at the forefront of global leadership in the aerospace sector. The aerospace industry is one of the most innovative industries in Canada, and it provides over 211,000 quality jobs for Canadians, and CA$28bn annually in GDP to Canada’s economy. That is why, today, the Government of Canada announced that it will provide CA$372.5m in repayable contributions to Bombardier. This funding will be provided over four years and will support thousands of good middle-class jobs, strengthen the long-term competitiveness of Bombardier, and help to build the aircraft of the future. Through its collaboration with Bombardier, the Government of Canada is investing in thousands of Canadians and hundreds of suppliers across the country. As the nation’s largest aerospace company, Bombardier supports thousands of jobs in design, engineering and manufacturing through its nationwide supply chain of companies. This initiative by the Government of Canada will fund research and development for the new Global 7000 business jet and ongoing activities related to the development of the company’s C Series aircraft. (USD1.00 = CA$1.32 at time of publication.) Triumph Group reports third-quarter fiscal 2017 results Net sales for the fiscal third quarter of 2017 declined 8% from the prior year quarter net sales, including US$1.2m of incremental sales from the October 2015 acquisition of Fairchild Controls, offset by US$4.5m of revenues related to the second-quarter divestiture. On an organic basis, sales were down 7% primarily due to production rate reductions by customers on the 747-8, G450/550 and C-17 programs, changes in model mix, decreased demand in commercial rotorcraft, and foreign exchange rates. These factors were partially offset by increased production rates on the 767/ Tanker program and stronger sales in the Product Support segment resulting from key contract wins with regional and commercial operators for components and accessories. Operating income included US$14.1m of restructuring costs and a US$14.4m loss on the pending sale of assets of Triumph Air Repair, the APU overhaul operations of Triumph Aviation Services-Asia and Triumph Engines- Tempe. Cumulative catch-up adjustments on long-term contracts were a net favorable US$2.1m. Net income for the third quarter of fiscal year 2017 was US$29.3m. SIA Engineering Group posts profit of S$52.6m for third quarter The Group posted a profit attributable to owners of the parent of S$52.6m for the third quarter of FY2016-17, an increase of S$3.2m or 6.5%. Profit this quarter included a S$2.3m gain on the partial disposal of an associated company, while the same quarter last year was impacted by provisions for closure costs and impairment of two associated companies. Operating profit of S$25.2m was S$3.8m or 13.1% lower than the same quarter last year. Revenue of S$272.3m saw a decrease of S$2.9m or 1.1%, mainly from lower fleet management and airframe and component overhaul revenue, mitigated in part by higher line maintenance revenue. Expenditure at S$247.1m increased at a lower rate of 0.4% or S$0.9m as the current quarter benefitted from an exchange gain of S$4.8m, while increases in staff costs were mitigated by lower subcontract costs. For the quarter, share of profits of joint-venture companies was S$14.3m, S$3.2m lower than the same quarter last year. However, contributions from associated companies increased by S$1.6m or 10.2% to S$17.3m. (US$1.00 = S$1.41 at time of publication.) Milestone Aviation Group provides US$230m secured debt facility to Bristow Group Milestone Aviation Group, a GE Capital Aviation Services (GECAS) company and the global leader in helicopter leasing, has signed a commitment letter with Bristow Group, a leading provider of global industrial aviation services. Under the agreement, Milestone is providing a US$230m secured term loan facility to a subsidiary of Bristow, secured by a pool of Bristow’s helicopter assets. As part of the agreement, Bristow will extend select Sikorsky S-92 leases with Milestone, and Milestone will also defer lease rentals on select Airbus H225 assets on lease to Bristow. Spirit AeroSystems meets 2016 guidance Spirit AeroSystems reported fourth quarter and full-year 2016 financial results driven by strong operating performance of mature programs. Spirit’s fourth-quarter 2016 revenue was US$1.6bn, down by two percent compared to the same period in 2015, primarily driven by lower production deliveries on the Boeing 747 and 777 programs, and partially offset by higher activity on nonrecurring programs. Revenue for the full year increased two percent to US$6.8bn, primarily due to higher production deliveries on the Airbus A350 XWB and Boeing 767 programs, partially offset by lower revenue recognized due to the impact of pricing terms on the Boeing 787 program and lower production deliveries on the Boeing 747 program. Operating income for the fourth quarter of 2016 was US$161m, compared to US$206m in the same period of 2015, primarily due to one-time incentive payments received in the fourth quarter of 2015. Operating income for the full year was US$725m compared to US$863m in 2015, with the decrease primarily resulting from forward loss charges recognized during the second quarter of 2016. Fourth-quarter reported EPS was US$0.89, AviTrader MRO - February 2017
Finance News 11 compared to US$1.01 EPS for the same period of 2015. Full-year EPS was US$3.70, compared to US$5.66 EPS in 2015. Hawker Pacific acquires Adagold FBO Operations in Brisbane and Cairns HawkerHawker Pacific has reported the acquisition of Adagold’s Fixed Base Operations (FBO) in Brisbane and Cairns. The two acquired FBO operations have been operating under the Hawker Pacific brand since January 24, 2017. In Brisbane, Hawker Pacific will operate from both its existing FBO facility and from the newly acquired FBO in the General Aviation precinct, providing unique access opportunities for customers. As Asia Pacific’s premier Fixed Based Operator, Hawker Pacific operates a network of world-class facilities across Australia and in the key Asian ports of Singapore and Shanghai, offering outstanding customer service and crew facilities on a 24/7/365 basis. The expansion of Hawker Pacific’s Fixed Base Operations further strengthens the company’s capacity to take full advantage of growth opportunities in Queensland. The acquisition comes as Queensland gears up for the 2018 Commonwealth Games on the Gold Coast, the scheduled completion of a new runway at Brisbane Airport in 2020, and the opening of a new casino in Brisbane. Cairns continues to be a premier tourist destination with increased business traffic. In addition to added capacity, the closer proximity of the new FBO facility to the new runway at Brisbane Airport will deliver significant time saving for Hawker Pacific customers, particularly when utilizing the General Aviation precinct. Dos Rios Partners acquires Pathfinder Aviation Dos Rios Partners, a Texas-based private equity firm, has acquired Pathfinder Aviation. Dos Rios partnered with Chuck Constant and Pete Henrikson of Phoenix Aviation Group of Dallas, TX and acquired Pathfinder from its founder and previous owner, Michael Fell. Chuck Constant and Pete Henrikson will lead the company as CEO and EVP of Operations, respectively. Pathfinder is one of the most-tenured and fastest-growing operators in Alaska and was founded in 2000 by Mike Fell to provide aviation services to the Alaskan market and beyond. With its rich history of operating fixedwing aircraft and helicopters in Alaska and other locations around the world, Pathfinder has proven to be a strong international aviation company serving customers year-round in the North Slope & Cook Inlet. Mr. Fell’s focus on customer service and safety is prominent in every facet of the Pathfinder culture. Other News Honeywell has joined the Clean Sky 2 Joint Undertaking, the largest European research program developing innovative technologies aimed at reducing carbon dioxide emissions and noise levels produced by aircraft. As a core partner of Clean Sky, Honeywell received funding worth €35m (US$37m) to back the development of aerospace technologies in support of the initiative. The funding will further strengthen Honeywell’s commitment to its European engineering centers, particularly in the Czech Republic, France and the United Kingdom. As part of its membership, Honeywell will undertake projects to develop priority technologies from cockpit solutions to health monitoring. It will also use the funding to advance its electromechanical actuators, which help improve aircraft performance and encourage lower operating costs. Lufthansa Technik has equipped a fourth VIP aircraft with the fastest available Internet connection. In addition to two Boeing 737-VIPs and an Airbus A340-VIP, the owner of an A330-VIP is now one of the first private customers to be able to use the new Ka-band broadband Internet solution. The experts in the VIP & Special Mission Aircraft Services business unit are currently installing this technology in yet another A340, and more completion contracts for VIP aircraft are currently in the acquisition stage. The integration and approval of what is presently the fastest Internet connection on board has become routine for the experts at Lufthansa Technik. The latest aircraft was even returned to the customer two days ahead of schedule. To enhance its service in Line Maintenance, SR Technics has optimized its operational office by moving to a mobile environment. Following extensive testing in order to determine which systems and devices provided the best operational data access, SR Technics’ Line Maintenance engineers and technicians are now equipped with mobile tablets which gives them the ability to perform their duties more efficiently, whenever and wherever the work is performed. This technology upgrade will increase quality and make processes leaner, besides providing the teams with a handy work solution. Connected to a secure data server, this virtual solution allows SR Technics experts to access aircraft documentation, live flight operations information, planning functions and work package distribution. It also includes task completion confirmation linked with the back office’s electronic operational control board. The feedback from maintenance personnel confirms that the new equipment is helping them to perform their tasks more efficiently. “We are continuously looking for new innovations and ways to improve our operations,” says Jakob Straub, Head of Line Maintenance at SR Technics. “With the integration of the mobile solution, Line Maintenance has found an efficient way to respond and even stay one step ahead of our customers’ needs.” AviTrader MRO - February 2017
Page 1 and 2: February 2017 - www.avitrader.com P
Page 3 and 4: OUR FOCUS IS ON ENGINEUITY When sel
Page 5 and 6: WHEELS & BRAKES IT’S THAT SIMPLE
Page 7 and 8: MRO and Production News 7 packages,
Page 9: BEST PARTNER VAS Aero Services prov
Page 13 and 14: Cover story: Aircraft teardowns 13
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Page 17 and 18: Industry Opinion 17 The images prod
Page 19 and 20: ATR maintenance 19 Growing services
Page 21: People On The Move 21 Jet Aviation

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