AviTrader Weekly News 2018-02-26

WEEKLY AVIATION HEADLINES
9
MRO & PRODUCTION NEWS
Safran and Albany inaugurate third composite
fan blade production plant for
LEAP engine, in Mexico
Safran and Albany have inaugurated a third joint
manufacturing plant in Mexico to make composite
parts for the LEAP aircraft engine. This
third joint plant is similar to and complements
the two existing plants in Rochester, New Hampshire
(United States), and Commercy (eastern
France), inaugurated in 2014. It involved a total
investment of about US$100m and delivered its
first parts in October 2017, primarily making 3-D
woven composite fan blades for the LEAP engine
from CFM International. As the LEAP program
develops, this plant will also make guide vanes.
The investment needed to add this capability
will start this year, with delivery of the first parts
expected in January 2019.
The new joint Safran/Albany plant in Mexico currently
has nearly 230 employees, operating in
a facility with 31,000 m² (334,800 ft²) of floorspace.
The total workforce is expected to reach
nearly 600 by 2021, to handle annual production
of more than 20,000 composite blades and
31,000 outlet guide vanes.
Located in the Querétaro Aerospace Park, this
newest plant benefits from its proximity to
other facilities, including Safran Aircraft Engines
Mexico and Albany’s Machine Clothing plant in
Cautitlan. Safran and Albany have been working
closely together for nearly 20 years. Through
this high-value-added partnership, they have
developed the 3-D RTM (resin transfer molding)
process used to produce fan blades and cases
for the LEAP engine. The use of 3-D woven composites
makes a significant contribution to the
LEAP’s performance, since it offers 15% lower
fuel consumption and CO2 (carbon dioxide)
emissions than previous-generation engines.
The construction of the new Safran/Albany plant
in Mexico was announced in 2016 to support the
ramp-up in LEAP production, which should reach
a peak rate of more than 2,000 engines per year
in 2020. Having already recorded over 14,000
orders and commitments. Today, more than 210
LEAP-1A and LEAP-1B-powered airplanes are deployed
by 33 operators on five continents, and
they have already logged over 610,000 flighthours
and nearly 300,000 cycles.
Bristow Helicopters select Honeywell’s
avionics protection plan
Honeywell has signed a five-year contract with
Bristow Helicopters for its Honeywell Avionics
Protection Plan (HAPP). The agreement will cover
26 of Bristow’s Leonardo AW139 helicopter fleet.
Under the agreement, Bristow Helicopters will
benefit from full maintenance protection coverage
for the avionics suite of its search and rescue
fleet, providing improved cost forecasting.
The company will also have access to repair and
parts exchange services in addition to support
from Honeywell and its global network of authorized
service centers to return its helicopters
back to the sky quickly and efficiently.
Honeywell offers a variety of maintenance contract
options, allowing operators to choose the
plan that best meets their requirements for exchange
and repair services. HAPP also provides
coverage on all Honeywell avionics systems
across civil service rotary fleets, as well as commercial
and business helicopters.
Bristow Helicopters provides industrial aviation
services, including offshore transportation,
search and rescue, and support services. The addition
of HAPP expands on the relationship between
the two companies, with Honeywell’s Sky
Connect flight data monitoring system already in
use across Bristow’s fleet.
Icelandair expands maintenance partnership
with MAEL
Independent MRO provider Monarch Aircraft
Engineering (MAEL), has won an expanded
maintenance commitment from Icelandair. Icelandair,
which has been a MAEL customer since
2003, has increased its current maintenance
commitment to include base maintenance for a
fifth aircraft – a Boeing 757 heavy check to take
place at MAEL’s Luton facility.
MAEL has carried out a check for Icelandair’s
B757 freighter aircraft last November and currently
has the second of three planned B767-300
aircraft in maintenance at its Luton facility.
Since becoming an independent MRO provider in
October 2017, MAEL has announced a wide range
of new agreements with airlines which, in addition
to Icelandair, include Virgin Atlantic Airways,
China Airlines, Wizz Air and La Compagnie.
FINANCIAL NEWS
Air Canada reports 2017 annual results
Air Canada has reported full-year 2017 EBITDAR
of CA$2.921bn compared to the previous full
year 2016 EBITDAR of CA$2.768bn, an increase
of CA$153m. Air Canada reported 2017 operating
income of CA$1.364bn compared to 2016 operating
income of CA$1.345bn. Adjusted pre-tax
income amounted to CA$1.158bn in 2017 compared
to adjusted pre-tax income of CA$1.148bn
in 2016. On a GAAP basis, the airline reported
income before income taxes of CA$1.279bn in
2017 compared to income before income taxes of
CA$877m in 2016. Air Canada recorded adjusted
net income of CA$1.142bn in 2017 compared
to adjusted net income of CA$1.147bn in 2016.
(US$1.00 = CA$1.26 at time of publication.)
flydubai sees strong growth in revenues
Flydubai has reported its full-year results for the
year ending December 31, 2017. flydubai reported
total revenue of AED 5.5bn (US$1.5bn)
compared to AED 5bn (US$1.37bn) last year; an
increase of 9.2%. The airline reported a profit of
AED 37.3m (US$10.1m) for the full year 2017;
the airline has continuously reported full-year
profitability since 2012.
Flydubai carried 10.9 million passengers in 2017
– a record number for the airline. Passenger
numbers grew by 5.5% compared to the previous
year. With up to 295 aircraft on order, flydubai
becomes one of the world’s top ten airlines
in terms of order backlog.
Avolon’s revenue reaches US$2.4bn in
2017
Avolon, the international aircraft leasing company,
has released results for the 2017 full year.
The year was headlined by the acquisition and
integration of CIT’s aircraft leasing business.
Avolon’s owned, managed and committed fleet
grew 109% in 2017 to 908 aircraft by year-end
and full-year profit after tax increased 59% to
US$550m.
Avolon reported 107 aircraft deliveries, transitions
and sales, including the delivery of 45 new
aircraft. The company sold 44 aircraft, including
29 owned aircraft and 15 managed aircraft,
across the combined platform in 2017.
Owned, managed and committed fleet increased
by 109% year-on-year to 908 aircraft at the end
of 2017. The average age of its owned fleet was
5.3 years, and the average remaining lease term
of its delivered fleet was 6.6 years. Fleet utilization
for the year was 99.4%.
Qantas posts record first half profit, starts
taking delivery of 18 A321LR neo aircraft
The Qantas Group has delivered its highestever
first half Underlying Profit Before Tax of
AU$976m for the six months ending 31 December
2017.
The result surpasses the previous record of
AU$921m achieved in the first half of FY16 and
comes despite recent increases in fuel costs and
continued international capacity growth. Both
Underlying and Statutory profit before tax were
significantly higher (15% and 20% respectively)
than the first half of FY17.
Net debt continued to fall and remains towards
the bottom of the range, at AU$5.1bn.
Sixty per cent of the Group fleet is unencumbered,
including two new 787-9s purchased
with cash. Debt maturity has been improved
by an eight-year, AU$350m corporate debt
program and short term liquidity remained
strong at AU$2.8bn. Operating cash flow increased
by 48% to reach a record AU$1.7bn,