30 Apr 2018

USA Aviation Industry Newsletter 30 April

Airlines for America Statement on House Passage of FAA Reauthorization Bill Airlines for America (A4A), the industry organization representing the leading U.S. airlines issued the following statement on House passage of H.R. 4, the Federal Aviation Administration (FAA) Reauthorization Act of 2018. “We applaud the House effort to produce an FAA reauthorization bill that provides long-term certainty for the 2.3 million passengers and countless businesses and shippers that rely on access to safe, affordable travel and shipping options every day,” said A4A President and CEO Nicholas E. Calio. “As the legislative process moves forward, we urge Senators to adopt a long-term bill that continues to hold the line against unneeded tax hikes, while also protecting our customers from ill-advised calls to regulate pricing and services across the industry.” Cayman Airways to launch western US flights in 2019 with B737 MAX 8 Cayman Airways plans to begin direct flights to the western US in early 2019, with Denver being eyed as one of the cities the carrier is considering with its new B737 MAX 8s delivering from November 2018. Cayman Airways plans to utilize its new MAX 8s on the routes, as they have the range and capacity to meet the demand for the western US. The route analysis of the carrier is 95 percent complete, with a formal announcement expected in a few weeks. C&L Aviation Group and TAM ink agreement to install Saab 340B Cargo Conversions C&L Aviation Group has signed an agreement to market Sweden-based Täby Air Maintenance’s (TAM’s) Saab 340B Cargo Conversions in the Americas. As part of the agreement, C&L is also an approved sales and installation center. TAM’s EASA- and FAA-approved cargo conversion STC is well-proven and provides a highly cost-effective way to convert this fuel-efficient passenger aircraft into a profitable freighter, capable of carrying 1,280 cu ft of cargo. Higher Fares Coming to American Airlines, Says CEO American Airlines CEO Doug Parker said that that rising fuel costs are gouging the carrier’s profits, and will drive up airfares. “If indeed this is where fuel prices are going to stay, I would expect you would see higher fares to consumers over time,” Parker said Thursday during a Q1 2018 earnings call. Jet fuel is the airline’s second-biggest expense after labor, so when costs go up, so do ticket prices; for American Airlines, costs had risen 40 cents a gallon from a year ago, leading to adjusted earning expectations for 2018 after a 45%, or $186 million, drop in first-quarter profit. sts are gouging the carrier’s profits, and will drive up airfares. JetBlue Adds New Cities and Routes as It Advances West Coast Strategy JetBlue nnounced it is advancing its West Coast strategy following its successful Mint® expansion in new markets like San Diego, Las Vegas and Seattle over the past year. The latest series of network enhancements is designed to better meet the needs of coast-to-coast travelers facing limited competition and – with the most legroom in coach, unlimited free snacks and complimentary Fly-Fi high-speed Internet, live television and movies – plays to JetBlue’s strength as a favorite choice for transcontinental travel. Turkish Airlines selects GEnx engines to power Boeing 787 Dreamliners GE Aviation's GEnx-1B engines will power Turkish Airlines' 25 Boeing 787 Dreamliners and five options, which were ordered last month. The airline also signed a 15-year TrueChoiceTM Flight Hour agreement with GE for maintenance, repair and overhaul for the GEnx-1B engines ordered. United Airlines increases economic stake in Azul to 8.0% Azul is announcing that current shareholder United Airlines has just concluded a private preferred share transaction with Hainan Airlines. The transaction increased United's economic stake in Azul from 3.7% to 8.0%. "We continue to look for new ways to provide more connectivity for our customers, and we are excited about today's announcement as Azul has been a great partner," said Andrew Levy, Executive Vice President and Chief Financial Officer of United Airlines. "Following our initial investment in 2015, connecting traffic between our airlines is at an all-time high, significantly benefiting our customers traveling between the US and Brazil. Azul's strong network in Brazil, unique business model and exceptional customer service make this transaction a good long-term investment." 15 Dreamliners by the end of 2019 - LOT Polish Airlines Orders More Boeing 787s Polish Airlines LOT announced that an order has been placed for the next three Boeing 787-9 Dreamliners to be delivered in 2019. In total LOT’s fleet now includes eight smaller B787-8s and one larger B787-9. Given all contracts signed by LOT, six Dreamliners will be added to its fleet in 2018-2019 LOT signed operational lease agreements with Avolon Aerospace Leasing Limited companies for three new machines, Boeing 787-9s, to be delivered straight from the Boeing Everett factory. The deliveries are scheduled for May 2019 (two machines) and for October 2019 (another aircraft). The term of the lease agreements is 12 years. 321 Precision Conversions Awards Avocet Conversion Contract Avocet Aviation Services announced that it has been awarded and begun work on the industry’s first Airbus A321 passenger-to-freighter conversion solution involving the development of the first cargo door prototype. The contract was awarded to Avocet by 321 Precision Conversions, LLC, an international leader in aircraft modifications based in Portland, Oregon. Acumen Aviation © 30 April 2018 All Rights Reserved.