09 Sep 2019

North America Newsletter 9 September

Aviation Capital Group Joins Tokyo Century Aviation Capital Group LLC (ACG) announced 9 August that its majority shareholder, Pacific Life Insurance Company, has entered into an agreement where Tokyo Century Corporation will acquire from Pacific Life all of its outstanding interest in ACG. Tokyo Century initially acquired from Pacific Life a 20% interest in ACG in 2017 and has since contributed additional equity capital to ACG, increasing its ownership to 24.5%, to help accelerate its business expansion. “Tokyo Century has been a valuable partner since 2017 and this acquisition of the remainder of ACG demonstrates a commitment to the growth and success of the ACG platform and the aircraft leasing industry,” said Khanh T. Tran, ACG’s president & CEO. “The ACG team is enthusiastic and looking forward to being part of the Tokyo Century family as we expand and continue to provide best-in-class global aircraft leasing, financing, and trading services.” Boeing, Aeroflot Announce Contract on 777 Passenger Cabin Modifications Boeing and Aeroflot announced during the Moscow Air Show, announced a contract to modify passenger cabins on 18 of the Russian flagship carrier’s 777-300ERs. "Aeroflot is widely recognized as a premium service airline. Designing a new Boeing 777 interior, we aim to enhance our premium quality at every class of service – business, comfort and economy. An updated interior will take Aeroflot to new heights,” said Andrey Chikhanchin, chief financial officer of Aeroflot. Boeing will perform engineering work and supply component kits for the planned cabin interior reconfiguration. Boeing and China Airlines Finalize Order for Six 777 Freighters China Airlines finalized its agreement with Boeing to order six 777 Freighters to modernize its cargo fleet. The carrier, which currently operates one of the world's largest 747 Freighter fleets, plans to transition to the largest and longest range twin-engine freighters in the industry as it launches operations from Taipei to North America, a key market that provides higher yields for the carrier. Boeing Forecast: Asia Pacific Region Sees Greatest Demand for Commercial Airline Personnel Boeing reports that the Asia Pacific region continues to drive global demand for commercial pilots, technicians and cabin crew. The region accounts for more than one-third of anticipated global demand, or 816,000 total new commercial aviation personnel over the next 20 years. The 2019 Boeing Pilot & Technician Outlook is an industry forecast of new aviation personnel demand. It is closely tied to projections for new airplane deliveries around the globe, and also takes into account annual aircraft utilization rates, crewing requirements by region and regulatory requirements. Over the next 20 years, airlines around the world will need 44,000 new airplanes, with more than 17,000, or 39%, of those airplanes delivered to the Asia Pacific region.  The forecast projects that the Asia Pacific region will need 244,000 new commercial pilots, or 38%, of the pilots needed around the globe. This demand, stemming from a mix of anticipated fleet growth, retirements and attrition, will be most significant in China; the country is expected to need 124,000 pilots, which is more than half of those needed in the region as a whole. Southeast Asia and South Asia follow, with 20% and 17% of the demand respectively. The Asia Pacific region is also expected to lead global demand for maintenance technicians (249,000, or 39% of global demand) and cabin crew (323,000, or 37% of global demand), with China leading demand for both (124,000 maintenance technicians and 150,000 cabin crew.) Boeing, KLM Announce Order for Two 777 Jets Boeing and KLM Royal Dutch Airlines announced 2 September that the carrier has ordered two more 777-300ER (Extended Range) aircraft. The order, valued at $751 million at current list prices, was previously attributed to an unidentified customer on Boeing's Orders & Deliveries website. "KLM is one of the world's leading network carriers and an aviation pioneer and we are delighted the airline has once again selected the Boeing 777-300ER to strengthen its long-haul fleet for the future," said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company. "KLM's continuing interest in the 777-300ERs shows the enduring appeal and value of the 777, thanks to its outstanding operating economics, superior performance and popularity among passengers." Mitsubishi Aircraft Corporation Announces an MOU with Mesa Airlines for 100 SpaceJet M100 Aircraft Mitsubishi Aircraft Corporation announced that it has signed a Memorandum of Understanding (MOU) with Mesa Airlines, Inc., a wholly-owned subsidiary of Mesa Air Group, Inc., to commence formal negotiations for the purchase of 100 Mitsubishi Aircraft SpaceJet M100 aircraft. The MOU was announced during a signing event at Mitsubishi Aircraft Corporation America’s booth during the Regional Airline Association (RAA) annual conference held, this year, in Nashville, TN, and targets 50 firm orders and purchase rights for an additional 50. Precision Aircraft Solutions redelivers 24th conversion to SF Airlines Precision Aircraft Solutions has redelivered one Boeing 757-200 aircraft, MSN 29941, to SF Airlines, a subsidiary of SF Express. The conversion is the 24^th Precision passenger-to-freighter Boeing 757 aircraft to join the SF air operation. SF Airlines, MSN 29941, was converted at the AMECO facility in Chengdu, China. Acumen Aviation © 9 September 2019 All Rights Reserved.