The number of engine overhauls this year should experience a 3.7% compound annual growth rate over last year, according to Aviation Week’s MRO Prospector data, with the IAE V2500 requiring the most, at 1,034 overhauls. Roscoe Musselwhite, who was promoted to president and CEO of AirLiance Materials in January, expects the V2500, CFM56-5 and CFM56-7 engines to drive about two-thirds of worldwide engine MRO business in two to three years.
Air New Zealand expected almost all of its regional services to be operating yesterday after the temporary grounding of its fleet of 11 ATR 72-500 turboprops caused major flight disruptions in the past few days.
US Airways and the City of Philadelphia appear to have settled a dispute over the expansion of Philadelphia International Airport (PHL), with the airline committing itself to its hub as long as the cost of operating “remains affordable.” Cost projections for the multi-billion-dollar expansion plan had irked US Airways and other operators, which argued that the additional runway scheduled for construction was unnecessary. Philadelphia Mayor Michael Nutter, however, stood by the proposal, citing the city’s need to increase access to international markets.
Indian private carrier Jet Airways will merge its two low-fare brands into one on March 25 as part of a strategic rebranding and restructuring effort. India’s biggest airline by market share operates low-fare flights under the JetLite and Jet Airways Konnect brands, which will become one entity called JetKonnect, the company said.
Iberia Express, which hasn’t started flying yet, has been accepted as an affiliate member of the Oneworld alliance by the group’s board. Iberia Express is scheduled to launch operations on March 25, initially with four aircraft and with 13 by year-end. The route network will be focused on feeder services to mainline Iberia in Madrid, but there also will be regional point-to-point markets.
Boeing and CFM International have defined the fan size of the Leap-1B engine for the 737 MAX at 68.4 inches, a slight increase in diameter that will increase performance without hurting weight and drag.
Aspiring low-cost carrier People Express Airlines says it expects to raise $45 million in net proceeds from an initial public offering (IPO) to meet and exceed the financial requirements for obtaining a U.S. Transportation Department (DOT) certificate to operate. The carrier, however, also told the DOT it will look for bridge financing if its planned IPO is delayed.
The Senate late yesterday afternoon rejected 55-44 an amendment that would have advanced a bill to reauthorize the U.S. Export-Import Bank. The measure needed 60 votes to pass. Ex-Im Bank supporters, including Boeing, want an increase in Ex-Im Bank’s spending limit to $140 billion and an extension of its operating authority to 2015. Opponents say Ex-Im loan guarantees to foreign carriers put U.S. airlines at a competitive disadvantage.
Airbus says initial flight test results of the “sharklet” winglet on the A320 show promising drag reduction results that indicate overall performance at or better than predictions. Airbus Senior VP-Leasing Markets Andrew Shankland says the device is on track to enter service on the A320 at the end of the year and will be installed on the remaining A318s, A319s and A321s in 2013. “The results so far are probably as good as, or slightly better than, expected,” he adds.
Air Berlin became the latest member to join the Oneworld alliance on Tuesday. Joining Oneworld is probably the most significant strategic change for Air Berlin in its history. The airline initially focused on the charter market, but later added seat-only sales. It became a major scheduled carrier mainly through the acquisition of DBA and LTU. But its ambitious growth has led to escalating losses since its 2006 initial public offering. Late last year, Etihad Airways bought a 29% stake in the airline providing more stability for the time being.
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State-run Air India will take delivery of all 27 Boeing 787 aircraft it has on order, putting to rest speculation that it might reduce the size of its order because of its huge debt burden and mounting losses. “It is a good aircraft for Air India. We are not cutting any orders,” India’s aviation minister, Ajit Singh, confirms. The delivery of all the aircraft may take up to three years, Singh adds.
Sukhoi expects to deliver 23 Superjet 100s in 2012 as it kicks up production toward a target of 60 units per year by 2014. Five aircraft have been delivered to date, says John Buckley, Superjet International VP-business development. Speaking at the International Society of Air Transport Aircraft Trading meeting in Phoenix, Buckley adds that the assembly rate is increasing on track to deliver up to 40 aircraft per year by 2013.
The Philippines appears unlikely anytime soon to be upgraded to Category 1 status in the U.S. FAA’s International Aviation Safety Assessment (IASA) program, which will scuttle Philippine Airlines’ (PAL) plans to operate Boeing 777s to the U.S. in the near term.
Silver Airways, the Florida-based airline that has assumed the network once operated by Gulfstream International Airlines, could soon expand into Washington Dulles International Airport by replacing Colgan Airlines on at least two of its Essential Air Services (EAS) routes.
United Parcel Service (UPS) completed a deal to acquire TNT Express for more than $6 billion, which raises some short-term and long-term questions about a Federal Express response and the potential for more consolidation in the increasingly concentrated cargo industry. The industry already has a “Big Four”—UPS and FedEx in the U.S., Deutsche Post DHL in Germany and TNT Express in the Netherlands. If the UPS deal for TNT goes through, it will be left with a “Big Three.”
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Aveos Fleet Performance, the former maintenance, repair and overhaul (MRO) arm of Air Canada that has been operating as independent, privately held company since 2004, suddenly closed its doors over the weekend and sought court protection from its creditors under the Companies’ Creditors Arrangement Act (CCAA). In a statement late Monday afternoon, Aveos, whose primary customer is Air Canada, said it has ceased its airframe MRO operations and will make decisions about its other operations, primarily engine and component MRO, after assessing its options.