Good day to you all, from Manchester, Downtown Suburb of Stretford AVIATION WORLD NEWS Monday, 20 February 2017 to Sunday, 26 February 2017 Alitalia Cancels Many Thursday Flights Tuesday, February 21, 2017 Alitalia has cancelled 60 percent of its flights on Thursday, February 23 as several of its unions called a 24-hour strike. Domestic and international flights are affected by the industrial action. The airline said flights operating between 07:00 and 10:00, and between 18:00 and 21:00 will operate as scheduled, but some unions will strike from 14:00 until 18:00, potentially causing further disruption. Alitalia said it has booked as many passengers as possible on alternative flights, and that refunds will be given at no charge as an alternative. Larger aircraft will also be used to carry as many passengers as possible. Last week Alitalia said it would present a revised business plan by the end of February that is expected to include cost savings of at least EUR 160 million and 2,000 job cuts. Etihad Airways, which owns 49 percent of the Italian airline, said it supports the turnaround plan. The airline s unions said they will go ahead with the strike unless Alitalia management agrees to reduce jobs cuts in the business plan. Singapore Chooses Boeing In US$13.8 Bln Deal Singapore Airlines announced its intent to place orders for 39 Boeing aircraft in a deal worth up to USD$13.8 billion at current list prices. The provisional order for 20 777-9s and 19 787-10s will allow it to update its fleet and provide additional growth over the next decade, the airline said. Included in the deal are options for a further six of each of the aircraft types. The 777-9s are powered by General Electric GE9X engines, and SIA will order Rolls- Royce Trent 1000s to power the 787-10s. 1
Singapore is the launch customer for the 787-10 with 30 already on order. Entry into service of the first of that order is expected in 2018/19. SIA is the second biggest operator of Boeing 777s, with 54 currently in service. It now has a total of 20 777s and 49 787s on order. Low cost unit Scoot has eight 787s on order British Airways Cabin Crew Call another Strike The union representing mixed fleet cabin crew at British Airways have called a further round of strikes for March. The Heathrow-based mixed fleet crew, which makes up about 15 percent of the airline s total cabin crew numbers, will strike for seven days, from 00:01 Friday March 3 to 23.59 on Thursday March 9th. The announcement comes as the same group are currently on strike until Saturday February 25th. It also comes on the same day as British Airways owner, IAG Group, reported a rise in pre-tax profits by nearly a third to GBP 2 billion, the Unite union said in a statement. It is clear from today s GBP 2 billion rise in IAG s pre-tax profits that British Airways can afford to address low pay among its mixed fleet cabin crew and settle this dispute, Unite s national officer Oliver Richardson said. British Airways said that all passengers will reach their destinations during the strike and that it would publish contingency plans next week. Boeing to Open First European Factory Boeing announced it will open its first European manufacturing facility with a GBP 20 million (USD$25 million) investment in the UK. The 2,300-square metre (25,000 square feet) factory in Sheffield, South Yorkshire, will produce actuators for 737, 737 MAX and 777 aircraft. The plant extends the manufacture of actuators beyond Boeing s Portland, Oregon facility. Boeing Sheffield will employ about 30 people, with recruitment expected to start in 2018. Trailing edge actuators are responsible for extending and retracting the wing s flaps during flight. 2
Boeing also announced a research and development programme with the University of Sheffield s Advanced Manufacturing Research Centre to develop new manufacturing techniques. IAG Boosts Profit Despite Currency Weakness IAG, the parent of British Airways and Iberia, released its full-year results for 2016, showing a 29 percent rise in net profit to EUR 1.95 billion (USD$2.06 billion). Operating profit before exceptional items for the year to end December 2016 came in at 2.53 billion, an 8.6 percent rise on 2015. Total revenue was 22.57 billion, a 1.3 percent dip, but operating costs were also down at 20.08 billion, a 2.4 percent improvement. Fuel unit costs before exceptional items were down 26.8 percent. IAG chief executive Willie Walsh said it was a good performance in a challenging environment, but it was affected by an adverse currency impact of 460 million. In particular, this was due to the weak pound following the UK's EU referendum. IAG, which comprises Aer Lingus, British Airways, Iberia and Vueling carried 100.6 million passengers, the first time it has surpassed 100 million. It was also the first full year of Aer Lingus contributing to the number after joining the group in August 2015. RPK (revenue passenger km) increased 9.7 percent on an ASK capacity rise of 9.4 percent. Group seat factor edged up 0.2 percentage points to 81.6 percent. During the year IAG added capacity on UK domestic and Europe routes, and also to Africa, the Middle East and South Asia. Latin America and the Caribbean saw no growth in capacity and North America contracted by slightly over one percent. The group increased its fleet size by 19 aircraft, mostly Airbus A330s and Boeing 787s as it moved away from thirstier 747-400s and A340s. IAG said it would buy back 500 million of stock during 2017. 3
Kenya-US Flights Closer After Security Clearance Thursday, February 23, 2017 The launch of direct flights between Kenya and the US is one step closer after Nairobi s main airport received approval from the FAA for Category One status. The approval comes after an FAA audit of facilities and security at Nairobi s Jomo Kenyatta airport. Currently, flights from the US to Kenya must either transit through Europe or Cape Verde, Ethiopia, Nigeria or South Africa, the only four countries in Africa with Category One status. Launching direct flights was part of a package of deals announced during President Barack Obama's visit to Kenya in July 2015. Delta Air Lines cancelled plans to fly to Nairobi last year due to security concerns. Kenya Airways also plans to offer direct flights to the US. The launch of direct flights is subject to approval from both governments. Flight Centre First Half Profit Drops 36 Pct. Thursday, February 23, 2017 Australia-based travel agent Flight Centre announced a first half net profit drop of 36 percent, due to unprecedented airfare discounting. The group s net profit for the six months to December 2016 was AUD$74.4 million (USD$57.2 million), down from AUD$116.7 million in the previous year period. Profit before tax was AUD$109.2 million, from AUD$156.8 million previously. Revenue eased down to AUD$1.251 billion, from AUD$1.258 billion on airfare deflation, the company said. Flight Centre s major market, Australia, saw growth in total transaction value (TTV) of 5 percent to AUD$5.1 billion as the company recorded strong growth in international and domestic flight sales. The USA and Mexico segment showed a 6 percent lift in TTV to AUD$1.3 billion, but losses increased in a low fare environment and the seasonally softer trading period, the company said. Profit in the UK rose 10 percent in the second quarter to December 31 after a flat first quarter. Looking forward, the group said trading conditions globally remain uncertain and the external factors that impacted the first half results - currency movements and airfare 4
deflation - may continue throughout the second half. Guidance on underlying profit before tax was revised down to between AUD$300 million and AUD$330 million. AerCap Reports Lower 2016 Profit Tuesday, February 21, 2017 Dublin-based aircraft lessor AerCap reported 2016 annual net income of USD$1.05 billion, down from $1.18 billion the previous year. Total revenue for the year was $5.15 billion, a 3 percent drop on 2015. For the fourth quarter to end December 2016, AerCap s net profit came in at $364.7 million, from the prior year period of $264.2 million. Revenue in the quarter was up 2 percent to $1.37 billion. AerCap delivered record results in the fourth quarter, finishing off a very successful year for the company, AerCap chief executive Aengus Kelly said. We continued to focus on proactive portfolio management initiatives which have resulted in executing over $3 billion in asset sales. This, combined with signing a record 279 lease agreements, illustrates the scale of AerCap s platform and the expertise of its people. The company said that as of December 31, 2016, its portfolio consisted of 1,566 aircraft that were owned, on order or managed. During the year it made 458 aircraft transactions and had a 99.5 percent fleet utilisation rate. Of new aircraft, 98 percent of deliveries to 2018, and 78 percent to 2019 have already been leased. AerCap said. AerCap is the world s largest commercial aircraft lessor. Air France Pilots Vote for Low-Cost Boost Unit Monday, February 20, 2017 Pilots at Air France have voted to accept in principle the creation of a new low-cost subsidiary at the airline, the SNPL union said. The union reported a 58.1 percent vote to accept the creation of the Boost low cost carrier. The turnout was 73.8 percent. SNPL said the vote clarifies the position of pilots but does not accept unilaterally the Air France proposals for the new airline. It said in a statement that many guarantees lacking in the airline s proposal will have to be addressed by the company. 5
We will continue to study the project in this new context and work to ensure it is a growth driver, including strong guarantees for Air France pilots, the president of SNPL Air France Philippe Evain said. The union sees further discussions necessary to find a compromise acceptable to the pilots. The Boost concept is for a low-cost long-haul carrier with a lower cost base than either Air France or KLM. Air France hopes to launch the new carrier late in 2017 or early 2018. Investigation after landing gear collapses on Flybe flight Thursday 23 February 2017 An investigation is underway after passengers on a Flybe flight had to be evacuated at Amsterdam Schiphol when their plane's landing gear collapsed. Emergency services were called to the scene when the Bombardier Q-400 ended up leaning on one side with its wing touching the runway. The 59 passengers on board were evacuated and there were no injuries. The incident happened shortly after Flight BE1284 from Edinburgh landed at Schiphol at 16:59 local time on Thursday. Flybe said last night all passengers had since left the airport to continue their journeys. Flybe CEO Christine Ourmieres-Widener said: "Our highest priority is the safety and well-being of our passengers and crew. Our pilots regularly train for situations such as this in simulators at our training academy in Exeter. Our cabin crew are also fully trained to deal with these situations professionally. "We have sent a specialist team to offer assistance to the investigation and we will now do all we can to understand the cause of this incident." The airline said all passengers would be contacted and offered support by its team and it would remain in contact with them over the next few days. That s All Folks schaltzie The World Belongs to the Enthusiast Who Keeps His Cool 6