USA: American Airlines Takes Its First Airbus A321neo Aircraft Of 100 Ordered

American Airlines has received its first of 100 ordered Airbus A321neo aircraft, which will replace the aging Boeing 757-200 and McDonnell Douglas MD-83 aircraft in its fleet.

The airline’s first Airbus A320neo family jet departed from Hamburg Finkenwerder early Friday for its ferry-flight to Pittsburgh, where American Airlines’ technicians will prepare the airplane for its entry into service.

In 2018, the airline reached an agreement with Airbus to defer the delivery of 22 A321neo aircraft that were previously scheduled for delivery in 2019, 2020 and 2021.

American Airlines, a founding member of the oneworld airline alliance, currently operates a mixed fleet of various Airbus, Boeing, Embraer and McDonnell Douglas aircraft. The airline is the largest operator of the Airbus A321 in the world.

Many airplanes in the fleet, for example the Boeing 757-200s, 767-300s or the MD-83 jets, are older than 20 years. Therefore, the carrier started the largest fleet renewal in its history to replace older planes with newer, fuel-efficient aircraft.


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USA: Airbus And Boeing Stuck With Iran Orders, Trump Spoils Deals - As Iran Export Licenses Revoked

The immediate repercussions of President Trumps decision to pull out of the nuclear accord with Iran will see export licenses for Boeing and Airbus revoked according to Steve Mnuchin, U.S. Treasury secretary.

While based in Toulouse, France, Airbus is directly affected as over ten percent of its planes’ parts are manufactured in the U.S. by companies including United Technologies Corp., Rockwell Collins Inc. and General Electric Co., thus making the sale of any of its planes to Iran subject to U.S. export restrictions.

In total, the potential combined sales from the manufacturing duopoly were estimated at US$40 billion.

The consequences for both plane manufacturers will be different as they adopted different approaches to selling planes to Teheran.

In a conservative move, Boeing never closed its transaction with Iran Air, and downplayed the historic deal’s prospects after Trump took office.

More recently, Boeing had discretely approached other customers for some of the 777-300ER jetliners that had been intended for Iran Air in 2018.

Back on April 25 Boeing CEO Dennis Muilenburg told investors - We have no Iranian deliveries that are scheduled or a part of the skyline this year, so those have been deferred in line with the U.S. government processes, If those orders do come to fruition, if we do ultimately deliver airplanes, those represent opportunities for us.

Airbus were more aggressive, recording the sales in its order backlog and delivered three jets, while its ATR venture shipped eight turboprops.

Airbus has 95 undelivered planes intended for Iran Air in its backlog, including 16 crucial orders for the A350 wide-body jet whose program has been dogged with order cancelations, and 28 for its A330neo.

Another 12 smaller turboprops manufactured by ATR were also due to be delivered to Iran’s national flag carrier.

An Airbus spokesman said jobs would not be affected. Our order backlog stands at more than 7,100 aircraft, this translates into some nine years of production at current rates.

We’re carefully analyzing the announcement and will be evaluating next steps consistent with our internal policies and in full compliance with sanctions and export control regulations. This will take some time.

Two years ago, with the pace of aircraft orders slowing, Airbus and Boeing were eager to line up orders from Iranian airlines.

Both companies signed big deals with Iran Air during 2016. Agreements with smaller Iranian airlines followed.

The deal that Boeing eventually struck with Iran Air called for the carrier to buy 80 aircraft, consisting of 50 737 MAX 8s, 15 777-300ERs, and 15 777-9s.

In 2017, Iran Aseman Airlines signed a letter of intent for 30 737 MAX planes, bringing Boeing's total orders from Iran to 110 aircraft.

However, Boeing never received licenses from the U.S. government that would allow it to export aircraft to Iran, and so it never included these deals in its firm order book.

Boeing never formally booked any of its orders from Iran-based airlines.

Boeing doesn't need orders from Iran for the popular 737 family, which had 4,673 firm orders as of the end of April. This translates to about seven years of production.

The potential 777 orders from Iran Air were far more valuable. Nevertheless, Boeing has been able to sell out its delivery slots for the next couple of years without relying on deliveries to Iran Air.

Just last week, Boeing sold another four current-generation 777s to Lufthansa Group.

Like Boeing, Airbus doesn't need the narrowbody orders it received from Iran.

The A320 family has an even bigger backlog than Boeing's 737 family.

Airbus is in a much more precarious situation with respect to widebodies.

Iran Air ordered more than 50 widebodies from Airbus, all of which were included in the plane maker's firm order book.

The carrier currently has outstanding orders for eight A330-200s, 28 A330-900neos, and 16 A350-1000s all of which will have to be canceled because Airbus planes use a high volume of American made components.


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POLAND: AviaAM Financial Leasing China Concludes $500 Million Aeroflot Project

AviaAM Leasing, a Warsaw Stock Exchange listed aircraft leasing company, is delighted to announce that its joint venture with the Henan Civil Aviation Development and Investment Company (HNCA) – AviaAM Financial Leasing China – has brought a $500 million-worth aircraft delivery project to a conclusion.

Eight brand new aircraft were delivered to Aeroflot -Russian Airlines in total with the last aircraft – Airbus A321 – joining the carrier’s fleet on Thursday last week.

The project, which started back in May, has now reached the finish line and we can unquestionably say it has contributed to a partnership between AviaAM Financial Leasing China and Aeroflot.

We continue to observe a clear trend in demand for the most popular narrow-body aircraft worldwide as well as under the One Belt One Road initiative, thus we anticipate conducting more similar projects in the nearest future, said CEO and Chairman of the Board of AviaAM Leasing, Tadas Goberis.

The recent delivery of Airbus A321-211 (MSN 7782), equipped with CFM56-5 engines, took place at Airbus’ facilities in Hamburg, Germany on the 21st of September.

Aircraft is fitted with 16 business and 167 economy seats and joins the growing fleet of Aeroflot, where it will be operated on regional and international flights for at least 12 years.

The delivery ceremony was attended by the top management of both parties as well as partners and was concluded with a traditional red ribbon cutting.

We are delighted to have completed one of the smoothest projects of this magnitude.

This of course wouldn’t be possible without AviaAM Leasing’s support and insight into the peculiarities of these types of projects.

More aircraft deliveries together with a trusted partner are definitely in our future plans,said Chairman at HNCA, Zhang Mingchao.



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RUSSIA: MS-21 Passenger Plane To Rival Boeing And Airbus

Russia's new MS-21 passenger plane, the first domestically-built commercial aircraft since the collapse of the Soviet Union, is a serious venture capable of competing with industry heavyweights Airbus and Boeing , the head of national airline Aeroflot said.

Russia carried out the MS-21's maiden flight on Sunday and has praised the twin-engine jet as a domestic alternative to those made by America's Boeing and Europe's Airbus, which dominate the medium-range narrow-body market.

Manufacturer Irkut Corporation and its state-controlled parent company United Aircraft Corporation (UAC) say the new plane is more efficient than its Western counterparts, but analysts warn Russia faces a huge challenge to shatter the transatlantic airplane duopoly.

If they achieve the goals they announced, then this is of course a serious plane.

It is a real plane which will compete with Boeing and with Airbus, Aeroflot CEO Vitaly Savelyev said.

I think this will be a serious machine, he added. It will be light, economical and effective. Now we are simply waiting for it.

Flag carrier Aeroflot, which operates a fleet dominated by narrow-body Airbus models, has yet to sign any purchase contracts for the MS-21.

But the company expects to do so this year and state defense conglomerate Rostec has already said it will lease at least 50 MS-21 planes to the airline.

Savelyev said he expected the first delivery to be made in 2019 and 40 percent of Aeroflot's fleet would be made up of domestic aircraft by 2023.

No price has been announced yet, but it will have to be competitive to justify future purchases said.

We, as consumers, cannot take a plane that is more expensive than competing versions abroad. If we are to do it, it has to be at a competitive price, Aeroflot CEO said.

The twin-engine MS-21 will be built in two variants: the MS-21-300 which will have 160-211 seats, and the later MS-21-200 which will have 130-165 seats.

It is sometimes referred to as the MC-21 when using the Russian name.

Production is expected to start in the next two years and state media have said numerous contracts with domestic and foreign carriers have already been agreed. Irkut said it so far had "firm orders" for 175 planes.

Majority state-owned Aeroflot is sometimes seen as making business decisions which primarily benefit the Russian government, such as a move in 2015 to buy a 75-percent stake in failing competitor Transaero.

The purchase was later abandoned and Aeroflot agreed to fulfill Transaero's ticket obligations at the state's request.

Savelyev said he had come under no pressure to support the MS-21, which the government is hoping will help rejuvenate domestic industrial production and make the country less dependent on foreign firms.

We are a commercial company, there is no pressure on us or instructions to buy Russian planes, he said.

We would like there to be a domestic aircraft, because every airline all over the world tries to support domestic producers.

USA: GE Capital Aviation Services (GECAS)

GE Capital Aviation Services (GECAS) is an Irish-American commercial aircraft financing and leasing company.

It is the largest commercial airline leasing/financing company in the world.

It is part of GE Capital, a company of the large conglomerate General Electric.

GECAS buys aircraft from manufacturers like Airbus and Boeing and then leases them to airlines, typically on eight year leases, usually on dry lease contracts.

It also buys aircraft from airlines and leases them back.

The company has three global headquarters, located in Singapore; Shannon, County Clare and Norwalk, Connecticut.

The primary competition for GECAS is AerCap, although other companies such as Air Lease Corporation, Aviation Capital Group, BBAM and SMBC Aviation Capital also compete with it.

GECAS has a fleet of over 1800 aircraft, used by 245 airlines.

Nearly all aircraft owned by GECAS are powered by engines from either GE Aviation, another subsidiary of General Electric, or CFM International, a GE Aviation/Snecma joint venture.

GECAS was formed in 1993 to manage the assets bought from the Irish-based Guinness Peat Aviation.

The company GE Capital Aviation Services Limited was based in Ireland and originally staffed by former GPA employees.
GE Capital also incorporated the California-based Polaris Aircraft Leasing into the group.

GECAS also owns a minority stake in Oxford Aviation Academy retained when they sold 80%,before dilution, of GECAT to STAR Capital Partners in 2007.

In 2015, GECAS took over the Irish-based Milestone Aviation to add helicopters to its leasing portfolio.

GECAS maintains a portfolio of narrow body and wide body passenger aircraft, cargo aircraft, and regional and turboprop aircraft from manufacturers Boeing, Airbus, Embraer, Bombardier and ATR.

Through its Milestone Aviation Group, GECAS also owns and leases AgustaWestland, Sikorsky and Airbus Eurocopter helicopters.

Customers finance these aircraft through the following GECAS offerings:
• Operating leases
• Purchase leaseback agreements
• Secured loans
• Aircraft servicing

Additionally, GECAS buys, leases and finances aircraft engines from GE and CFM, as well as from manufacturers Rolls-Royce, Pratt & Whitney, IAE and Engine Alliance.

GECAS provides the following for its engine pool:
• Operating leases
• Short-term leases
• Purchase leaseback agreements
• Secured loans
• Engine exchange
• Engine servicing
GECAS distributes recertified engine and aircraft parts through its Asset Management Services group.

The company maintains an inventory of parts from Airbus, Boeing, Douglas and Bombardier aircraft that have been overhauled, repaired or modified and distributes these parts from warehouses in North America, Europe and Asia.

GECAS also operates AviaSolutions, which provides aircraft consultancy services to airports, investors and financial institutions, governments and airlines.

AviaSolutions advises clients on business development, route development, infrastructure planning, airline management, regulations, and various other projects.

Smaller Planes Trending In Aviation

Large jetliners appear to be going out of fashion, according to the world’s two largest aircraft makers.

At the annual Farnborough International Airshow this week, the two manufacturing giants both logged huge orders from Asian airlines for smaller planes.

They included a knockout US$12.6 billion order for 100 Airbus single-aisle A321neos from budget carrier AirAsia, and a US$7.7 billion order for 72 A320neos from Indian low-cost carrier, GoAir.

Boeing, which also announced a series of accords with Chinese customers including Xiamen Airlines and Ruili Airlines at the show, raising its annual 20-year global aircraft demand outlook by 4.1 per cent this week.

It predicts the world will need 39,620 new airplanes worth US$5.9 trillion in the next two decades, but it continues to revise down forecast demand for large jets with more than 400 seats such as its B747-8. Compared with its forecast last year, it also lowered the number for medium large jets with 300-400 seats from 3,520 to 3,470.

“The single-aisle market will be especially strong, with low-cost carriers and emerging markets driving growth,” Boeing said, which forecast 28,140 new airplanes worth US$3 trillion will be needed in this segment, an increase of more than 5 per cent over last year.

Airbus, which makes the world’s biggest commercial airliner, the A380 double-decker, said it would build just 12 of the giant planes a year starting from 2018, down from 27 in 2015, within its own predictions which forecast “a trend towards higher capacity aircraft”.

It also lowered its forecast demand for the very large passenger and freighter aircraft combined, by nearly 5 per cent from 1,550 to 1,480.

Thomas Kaplan, an analyst with consultancy Flightglobal Ascend, said: “The Boeing and Airbus forecasts have traditionally diverged in their opinions for the largest passenger widebodies, with Airbus much more optimistic. This is unsurprising, given they have the only Very Large Aircraft – the A380 — in production.”

The A380, seating up to 600, is “a lot of seats to fill and has a high capital cost”, he said, lending itself mostly for use on the busy trunk routes such as those between Asia and Europe.

“The customer base is limited, as is always the case the larger an aircraft gets,” Kaplan said.

The core of future aircraft demand is for smaller widebodies, typically around 300-350 seats, according to Ascend. “These have the flexibility to operate on many routes and offer frequent service on trunk routes including intra Asia, transatlantic and transpacific,” he said.

Boeing expects the world will need 5,100 such planes in the next 20 years, up from 4,770 in its 2015 forecast.

Mark Lapidus, chief executive of Amedeo, which specialises in leasing widebody planes, disagrees that larger aircraft have diminishing appeal. He pointed out that Boeing’s upcoming B777-9x and a possible -10x model under study are getting bigger and bigger compared with their predecessors.

“The A380 is an aircraft some people make a lot of money with, some have struggled, and some are afraid to order or lease. It in particular is a brand-defining aircraft which keeps customers happy. That will bode well for the A380,” he said.

Airbus Closed Gap With Boeing In Battle For Airliner Orders

Airbus virtually closed the gap with Boeing in their intense battle for airliner orders in July after booking about half of the 197 firm sales unveiled at last month's Farnborough Airshow, according to the latest data from both companies.

Amid a broad slowdown in purchases, the European planemaker said it had sold a total of 373 jets between January and July, or 323 after adjusting for cancellations.

That compares with 383 airplane sales, or 333 after cancellations, notched up by US rival Boeing.

Combined orders at the world's dominant planemakers fell 17 per cent from the same period last year, weighed by concerns over the economy and relatively low oil prices which have taken the edge off demand for new fuel-saving models.

Both planemakers are also struggling to book new sales in a market that is seen as somewhat oversupplied with jets, especially larger wide-body models, industry experts said.

The slowdown has raised some questions about whether they will maintain plans to boost output later this decade.

Both have also faced a slew of order deferrals in recent weeks, while insisting the trend of postponements is stable.

Two industry sources said Indonesia's Lion Air, one of the largest Asian jet buyers with hundreds of jets on order from Boeing and Airbus, is aiming to defer about 25 Airbus jets.

Airbus declined comment and Lion Air was not available.

The planemaker was also hammering out last details of an order for 100 more planes from Lion Air's regional rival AirAsia , announced in a shower of publicity at Farnborough.

After a slow start to the year, Airbus had looked set to end the Farnborough Airshow with 380 net orders for the year to date including the AirAsia deal, which it described as a firm order.

The deal did not make it into the new tally, however, and an Airbus spokesman said paperwork was being finalised. A person close to the talks said they only involved tying up loose ends.

Latest Airbus data also suggested that another order secured at the height of an industry boom in 2012 had been trimmed back.

Mexican low-cost carrier Interjet has cancelled five of 40 A320neo jets it has on order, according to Thursday's update.

No immediate comment was available from the airline on the disclosure, which comes as Mexican consumer confidence drops to its lowest level in two years amid a weak economy.

While Boeing remains ahead by a whisker in the race for new orders, it maintains a solid lead on deliveries which drive revenues, handing over 432 jets between January and July.

Airbus delivered 339 jets between January and July, down 4 percent on the year, due in part to a shortage of Pratt & Whitney (UTX.N> engines for its latest model, the revamped A320neo.

Airbus delivered just three of the jets in July, including two powered by Pratt & Whitney and the first to be delivered with alternative engines from CFM International .

So far this year it has delivered 11 A320neos and 15 of its widebody A350s, another model suffering delays due in part to problems with suppliers. It aims to deliver 50 A350s this year.

Industry sources say that besides widely reported problems with cabin equipment such as toilets, the A350 has faced some other glitches including quality problems with wing spoilers from Austrian parts maker FACC. An Airbus spokesman said these problems had been resolved. FACC declined to comment.

New Airbus data also incorporated the cancellation by Qatar Airways of the first of 50 A320neo-family jets it has ordered.

The Gulf airline has criticised Airbus and Pratt & Whitney over A320neo delays and said in June it would exercise a clause to abandon the first jet, one of several parked in Qatar livery outside the French factory waiting for engines.

Parent Airbus Group said last week that upgraded versions of the engines were now being delivered.

Meanwhile, Qatar Airways is in talks with Boeing for rival 737 MAX jets to diversify its fast-expanding fleet.

JetBlue Orders 30 Additional A321 Aircraft

New York-based JetBlue Airways has amended its purchase agreement with Airbus to include an additional 15 Airbus A321ceo (current engine option) and 15 A321neo (new engine option) aircraft.

The airline, which already operates A321s, has not yet announced its engine selection for the newly ordered aircraft. Beginning in 2019, JetBlue has the flexibility to configure the New Engine Option aircraft to the Longer Range version of the A321 – the A321LR.

“Airbus has been our partner since the beginning, and we are proud that our partnership continues today,” said Robin Hayes, president and CEO, JetBlue. “The A321 is an incredible aircraft that is delivering results for our business. We intend to deploy many of these aircraft to expand our successful Mint experience and our west coast presence.”

Many of JetBlue’s newly ordered A321 aircraft are expected to be delivered from Airbus’ newest manufacturing facility in Mobile, Alabama. The first aircraft to be produced at Airbus’ U.S. Manufacturing Facility – a JetBlue A321 known as “BluesMobile” – is on public display at the EAA AirVenture air show in Oshkosh, Wisconsin. BluesMobile was delivered to the airline and entered service this spring.

“When we decided to build an assembly line in the U.S., we did it to help meet the increasing demand from our U.S. customers,” said John Leahy, Chief Operating Officer – Customers. “The A320 Family is a market leader worldwide – one that has found particularly great success in the United States because of its economics, efficiency and comfort. We look forward to delivering more and more aircraft from our U.S. facility to our customers here in America.”

JetBlue currently operates a fleet of 160 A320 Family aircraft, including 130 A320s and 30 A321s. Including the order announced today, the airline’s backlog of Airbus aircraft comprises 116 planes: 25 A320neo, 31 A321ceo, and 60 A321neo aircraft.

The A320 Family is the world’s best-selling single aisle product line with almost 12,600 orders since launch and more than 7,100 aircraft delivered to more than 320 operators worldwide. Thanks to their widest cabin, all members of the A320 Family offer unmatched comfort in all classes and Airbus’ 18” wide seats in economy as standard. With one aircraft in four sizes, the A320 Family, seating from 100 to 240 passengers, seamlessly covers the entire single-aisle segment from low to high-density domestic to longer range routes.

IRAN: Iran Air Can Fly In EU

EU Transport Commissioner Violeta Bulc has been quoted as saying in an announcement as saying that the decision follows a visit to Iran and a technical assessment of the country's aviation safety standards.

"Following my visit to Iran in April, a technical assessment was successfully carried out in May," EU Transport Commissioner Violeta Bulc said in her statement.

"Based on this I am happy to announce that we are now able to allow most aircraft from Iran Air back into European skies," Bulc added.

Previously, only the carrier's EU-manufactured Airbus planes could operate in the bloc.

Iran's aviation industry - among several other sectors - had been under a draconian regime of US-engineered sanctions for multiple years. The sanctions were lifted in January when a deal between Iran and the so-called P5+1 - the five permanent members of the Security Council plus Germany - came into effect. The deal - the Joint Comprehensive Plan of Action (JCPOA) - envisaged steps by Iran to restrict certain aspects of its nuclear energy activities in return for the removal of sanctions against the country.

Iran has since intensified efforts to purchase new planes from global aviation giants including Airbus, Boeing and others.

In January, the country sealed a deal with Airbus during a state visit to Paris by President Hassan Rouhani to purchase 118 new planes. Iranian officials say a similar deal is also being worked out with Boeing.

Officials in Tehran have already emphasized that a bulk of new planes will go to Iran Air.

IRAN: Iran Needs 551 Airplanes In 9 years

Iran's air fleet needs 551 new airplanes by the Iranian calendar year 1404 (March 2025- March 2026), Transport Minister Abbas Akhoundi announced on Wednesday.

The Iranian air fleet includes 266 airplanes, 100 of which are grounded due to their old age, Akhoundi said.

"The average age of in-service airplanes in Iran is around 23 years and they should go out of service within a year according to international standards," he added.

Following Iran's nuclear deal with the world's major powers and lifting of sanctions against the country, the Islamic Republic made renovation of its ageing air fleet one of its top priorities.

The first deal after the nuclear accord was signed in January with Airbus. The Iranian flag carrier, Iran Air, agreed to buy 118 jets worth $27 billion from Airbus.

Akhoundi announced on Tuesday that the agreement on purchasing Airbus planes will be concluded within the next three or four weeks.

Also, Boeing Co. said Tuesday it signed an agreement with Iran Air "expressing the airline's intent" to buy its aircraft, marking the first major deal with an American company in the Islamic Republic following its landmark nuclear deal.

The Chicago-based manufacturer issued a statement saying that it signed the agreement "under authorizations from the U.S. government following a determination that Iran had met its obligations under the nuclear accord reached last summer."

SERBIA: Air Serbia Takes Delivery Of Its First A330

Air Serbia has taken delivery of its first Airbus A330, which will be deployed in its forthcoming five-weekly Belgrade-New York service, set to start next June 23, thus reconnecting Serbia and the United States with a direct air service for the first time in 24 years.

The aircraft, (A6-EYC / MSN 885) arrived yesterday at the airline’s base at Nikola Tesla Airport in Belgrade, where it was greeted by the customary water cannon salute, together with a delegation of airline representatives.

Onboard the historic flight commanded by Captain Davor Mišeljić, Chief Operations Officer of Air Serbia, there was a group of VIP stakeholders led by Siniša Mali, Chairman of Air Serbia, who highlighted that the milestone was “massive for both the airline and the country.

“Watching our newly-painted Airbus A330 land at its new home in Belgrade for the very first time was a proud moment for us all, showing that Air Serbia is continuing to invest in the future of the airline and Serbia itself,” Mali said.

The arrival of the A330 to Air Serbia is the latest step to modernize the airline, which now largely relies on Airbus aircraft as the core of its fleet. The airline, now 49 per cent owned by Etihad Airways, operates 10 A320 family aircraft and a half a dozen of ATR 72s for its regional operations.

After its arrival at Belgrade, the aircraft will receive is permanent Serbian Registration (to be YU-ARA), and it will be ferried to Abu Dhabi for a final cabin outfitting. The aircraft will be configured with 18 business and 236 economy class seats.

“In the coming weeks the aircraft will be completely refurbished with new Business and Economy cabins which, coupled with our fantastic service offering, will provide guests with an unparalleled travel experience over the Atlantic,“ Dane Kondić, Chief Executive Officer of Air Serbia said in a statement.

RUSSIA: Aeroflot Subsidiary Aurora Airline Traffic Up By 22%

Aeroflot subsidiary Aurora Airline—which serves Russia’s Far East—carried 276,827 passengers in the first quarter, up 22% year-over-year (YOY), as a result of network and fleet growth.

In the first quarter, Aurora carried 216,454 domestic and 60,373 international passengers. It carried 1,638 tonnes of cargo, up 33% YOY. Total flying hours for the quarter were up 19% to 8,297 hours YOY.

Aurora’s 20-strong fleet comprises 10 Airbus A319s, two Bombardier Q400s, four DHC-8 Q300s, two DHC-8 Q200s and two DHC 6-400 Twin Otters. The airline took delivery of the first Q400 last December.

Aurora operates international flights to Hong Kong, Beijing, Tokyo, Harbin and Busan as well as domestic flights to Khabarovsk, Magadan, Yakutsk, Novosibirsk and Irkutsk.

Aurora previously said that in 2018 its fleet will include 42 aircraft and will operate services on 120 routes. It plans to double the number of passengers to 2.5 million and triple weekly services up to 500 flights per week.

IRAN: Iran To Purchase 114 Aircrafts From Airbus

A purchase of more than 100 aircraft from Europe's Airbus may be one of Iran's first big deals in a trade and investment boom that could reshape the economy of the Middle East.

"The legs of Iran's economy are now free of the chains of sanctions, and it's time to build and grow," President Hassan Rouhani tweeted on Sunday, a day after world powers lifted sanctions on Tehran in exchange for curbs on its nuclear programme.

Hours earlier, his transport minister Abbas Akhoondi said that Iran intended to buy 114 civil aircraft from Airbus - a deal that could be worth more than $10 billion at catalogue prices.

Airbus said on Saturday it had not yet held commercial talks with Iran, and businesses operating in the Islamic republic will continue to face big obstacles for the foreseeable future.

Risks include indebted Iranian banks, a primitive legal system, corruption and an inflexible labour market. Many foreign companies will remain wary of investing in Iran because of concern that the sanctions could "snap back" if Tehran is later found not to be complying with the nuclear agreement.

But the Airbus plan underlined Iran's potential: with about 80 million people and annual output of some $400 billion, it is the biggest economy to rejoin the global trading system since the Soviet Union broke up over two decades ago.

The nuclear deal removed restrictions that stifled Iran's economy for most of this decade - on banking, money transfers, insurance, trade, transport and procurement of technology.

This will allow Iran to satisfy pent-up demand for goods and services that it had trouble obtaining at affordable prices under sanctions, from aircraft to factory machinery, medicines and some consumer goods such as cosmetics and branded clothing.

Iran will immediately have more money to pay for imports, as the government gains access to tens of billions of dollars of its assets that were frozen abroad by the sanctions.

U.S. officials have estimated the amount of funds to be unblocked at over $100 billion. Iran's central bank has said the total is much smaller at $29 billion, but that would by itself still cover several months of imports of goods and services.

Iran will also gain financial strength from an increase in oil exports, as it becomes able to sell freely into the global market once again - though ultra-low oil prices, and the need to repair ageing oil facilities, mean the rise in revenues may initially be small.

Rouhani told parliament on Sunday that Iran aimed to attract $30-50 billion of foreign capital in the next five years to boost annual economic growth, now near zero, to 8 percent - a level achieved by Asia's "dragon" economies in their best years.

"Iranian government policies in the post-sanctions era will focus on attracting foreign investment, expanding non-oil exports, and making the best use of financial assets," he said.

Many economists think the 8 percent growth target is much too optimistic without difficult reforms to business regulation and the labour market that could take years to push through, even if Rouhani can sustain the political will for them.

But the lifting of sanctions does appear likely to trigger a surge of growth. Analysts estimate a third of Iranian industry may have been idled by the sanctions; some of this will now start coming on line as Iran seeks to regain export markets.

That could shift the balance of economic power in the Gulf. Over the past decade, as Iran has laboured under sanctions, trade and investment flows have favoured the Gulf Arab oil exporters, including Saudi Arabia's $650 billion economy.

Growth in the Gulf states is now slowing as their state finances are damaged by low oil prices. Iran, with a much more diverse economy that includes big non-oil sectors such as agriculture and car manufacturing, could begin to catch up.

Iran's trade with the European Union totalled 7.6 billion euros ($8.4 billion) in 2014. In 2011, before banking sanctions hit, it was 27.8 billion euros - a measure of the ground that may be recovered.

U.S. companies look set to lag rivals from other countries in restoring trade with Iran, because Washington will retain broad sanctions that predate the nuclear crisis and were imposed over other issues such as terrorism and human rights abuses.

But U.S. business with Iran may still increase, after the U.S. Treasury said on Saturday that it would permit foreign subsidiaries of American companies to trade with Iran - a channel that big multinationals may be able to exploit.

A big foreign investment presence may take longer to rebuild than trade ties. Some firms may want to wait until they see the stance of the next U.S. president towards Iran; many will worry about "reputational risk", or exposure to legal action from shareholders or lobby groups, if they invest there.

Some oil companies will rush back to Iran, and service sector and retail firms may invest because they do not need to risk much capital, but other businesses will be cautious, the Eurasia consultancy predicted.

Even in manufacturing, however, the lure of Iran's big consumer market may be hard to resist. France's PSA Peugeot Citroenhas been trying to negotiate a return to manufacturing in Iran, from which it withdrew in 2011; Renault has also been looking at such a deal.

Germany's Daimler said last week that its commercial vehicle division aimed to return if sanctions were lifted. "We are currently in talks with potential Iranian partners," a spokeswoman for Daimler Commercial Vehicles said.

A320neo Launch Customer Lufthansa, Not Qatar. IndiGo Now Third.

Air Transport World is reporting that Airbus will deliver the first A320neo (new engine option) to German flag carrier Lufthansa and not Qatar Airways as originally planned. India’s IndiGo which was expected to be the second operator to receive deliveries will now be moved to third slot.

The last minute change has been necessitated due to the ongoing problems which require the the Pratt & Whitney PurePower PW1100G Geared Turbo Fan (GTF) engine to be run for three minutes in idle condition after start-up before commencing taxi. Qatar is unwilling to accept the aircraft with these restrictions, and while Pratt is working on making the needed hardware and software changes, it will take a few weeks and would cause Airbus to miss its commitment of delivering the first A320neo in 2015.

Lufthansa will be financially compensated for the mandated three minute idle, but there are some regulatory issues that need to be sorted out. If all is settled, expect the first A320neo to be delivered from Hamburg on December 22, 2015.

India’s largest domestic airline, IndiGo, which has placed firm orders for 430 neos with options for 100 more, again powered by the Pratt engine will slip to third place. Either Airbus did afford the opportunity to IndiGo like it did Lufthansa, or the regulatory hurdles with India’s civil aviation regulator would cause an unacceptable delay, or the airline refused, just like Qatar did.

Whatever the reason, the arrival of the neos in India will be delayed by a few weeks.

FRANCE: Airbus To Boost A320 Production To 60 A Month In Mid-2019

To match ongoing high demand for its bestselling A320 Family, Airbus has taken the decision to further increase the production rate of the Single Aisle Family to 60 aircraft a month in mid-2019. The decision follows thorough studies on production ramp-up readiness in the supply chain and in Airbus sites to allow the ramp-up.

To enable the ramp-up Airbus will extend its capacity in Hamburg with the creation of an additional production line. In parallel Airbus will integrate cabin furnishing activities for A320 aircraft produced in Toulouse into the Final Assembly Line in Toulouse, and thereby harmonising the production process across all A320 Family Final Assembly Lines worldwide.

“The growing Single Aisle demand and impressive backlog for both CEOs and NEOs led us to decide on a further ramp-up,” said Didier Evrard, Executive Vice President Programmes. “I am confident that we have the highest skilled teams and the right solutions in place to gradually move to the highest production rate ever achieved in civil aviation history.”

The A320 Family is the world’s best-selling single aisle product line with over 12,200 orders since launch and more than 6,700 aircraft delivered to more than 300 operators worldwide. Thanks to their widest cabin, all members of the A320 Family offer unmatched comfort in all classes and Airbus’ 18” wide seats in economy as standard. With one aircraft in four sizes (A318, A319, A320 & A321), the A320 Family, seating from 100 to 240 passengers, seamlessly covers the entire single-aisle segment from low to high-density domestic to longer range routes.

The A320neo Family incorporates latest technologies including new generation engines and Sharklet wing tip devices, which together deliver more than 15 percent in fuel savings from day one and 20 percent by 2020 with further cabin innovations. With over 4,300 orders received from more than 75 customers since its launch in 2010, the A320neo Family has captured almost 60 percent share of the market.

SOUTH KOREA: Korean Air Finalises Order For 30 A321neo

New order comes as carrier celebrates 40 Years of Airbus operations

Korean Air has signed a contract with Airbus covering a firm order for 30 A321neo aircraft plus 20 options, becoming a new customer for the best-selling single aisle A320 Family. The purchase agreement finalises a commitment announced earlier this year and was signed in Seoul by Walter Cho Won Tae, Korean Air Executive Vice President and Fabrice Brégier, Airbus President and CEO.

The order comes as Airbus and Korean Air celebrate 40 Years of Airbus operations at the airline, which began in October 1975 when the carrier’s first A300B4 entered service on the Seoul-Fukuoka route. Since that time Korean Air has continuously operated Airbus widebody aircraft, including various versions of the A300, the A330 and the double-deck A380.

Korean Air will operate the A321neo with a two class full service layout on regional services, including on longer sectors to selected destinations in South East Asia. The aircraft will be fitted with premium amenities, including wider seats in both classes and the latest in-flight entertainment and connectivity systems.

“We are pleased to be able to finalise our first ever single aisle aircraft order with Airbus,” said Cho Yang Ho, Chairman of Korean Air Group. “The A321neo will bring new levels of efficiency, longer flying range and greater in-flight comfort to our single aisle fleet, as well as reduced impact on the environment. The A321neo will contribute to our ongoing commitment to offer true excellence in flight wherever we fly.”

“Over four decades Korean Air has consistently ranked among the top operators of Airbus widebodies,” said Fabrice Brégier, Airbus President & CEO. “We now look forward to a new phase in our relationship with the arrival of the airline’s first Airbus single aisle aircraft. We are confident that the A321neo will not only meet but will fully exceed the airline’s expectations in terms of operational efficiency, profitability and passenger appeal.”

Korean Air placed its first order, for the original A300B4 in September 1974, becoming just the fourth airline in the world and the first from outside Europe to sign an aircraft purchase agreement with Airbus. Today, the A380 is the flagship of the airline’s long haul fleet, while the mid-size A330 is operated by the airline on services across the Asia-Pacific region, as well as on selected routes to Europe.

The A321 is the largest member of the best-selling single aisle A320 Family. To date, the A320 Family has won more than 12,200 orders and over 6,700 aircraft have been delivered to more than 300 operators worldwide.

Incorporating new engines and the latest technologies, the A320neo Family will bring a step-change reduction in fuel consumption of over 15 per cent, longer range capability and reduced maintenance costs, as well as significantly reduced carbon emissions.

With over 4,300 orders received from more than 75 customers since its launch in 2010, the A320neo Family has captured almost 60 percent share of the market.

SINGAPORE: Tigerair Signs Flight Hour Services With Airbus For Its A320 Fleet

Tailored service providing operational performances excellence for Tigerair.

Tigerair Singapore has signed a Flight Hour Services - Tailored Support Package (FHS-TSP) contract with Airbus to provide full component support, and fleet technical management services for its A320-family aircraft.

This 10-year FHS-TSP contract, commencing early 2016, guarantees spare parts availability through an extensive scope of A320 Line Replaceable Units (LRUs), components repair, transportation and expendables provisioning together with Fleet Technical Management (FTM) services where Tigerair will benefit from Airbus’ experience and expertise to optimize their aircraft maintenance and engineering operations.

Mr Ho Yuen Sang, Tigerair Chief Operating Officer Managing Director said: “We are pleased to select Airbus as our key business partner for the maintenance of our A320 fleet. Aircraft manufacturer’s expertise, high reliability of components and repair service combined with overall cost competitiveness were key factors in our decision.”

Mr Didier Lux, Airbus’ Executive Vice President, Customer Services said: “We are delighted to be supporting Tigerair in its plan to grow while securing the highest level of A320 operations. This new contract once again underlines the best value for money and excellent customer service that is embodied within our Airbus FHS solution.”

Tigerair, a leading Singapore-based no frills airline, operates a fleet of A320 family aircraft. The airline has 39 A320neo aircraft on firm order and another 11 on purchase options for future fleet renewal and growth.

Airbus FHS contracts have now been selected to cover more than 200 aircraft from operators of A320, A330, A380 and A350 XWB.

Airbus, through “Services by Airbus”, offers end-to-end fleet lifecycle solutions for all its customers. The portfolio ranges from standalone services, to the most complete integrated solutions, including Flight Hour & Tailored Support packages, upgrades, training, e-solutions, engineering & maintenance, flight operations Air Traffic Management, and material management services. Together these enhance aircraft superiority by continuously adapting to customers' evolving needs.

With more than 40 years of experience in the aircraft industry and a worldwide network of more than 2,500 professionals, customers benefit from the unique expertise and capabilities from Airbus and its affiliated family companies.

VIETNAM: Vietjet To Expand Its Fleet With Order For 30 Additional A321s

A320 Family confirmed as aircraft of choice for growing Vietnamese carrier

Vietnamese carrier Vietjet has placed a firm order with Airbus for the purchase of 30 more A321s (9 A321ceo and 21 A321neo). The order was signed at the Dubai Airshow by Vietjet President and CEO, Nguyen Thi Phuong Thao, and John Leahy, Airbus Chief Operating Officer, Customers.

“Today’s order for additional A321s responds to our growth strategy and to the need for additional seat capacity on both domestic and international routes,” said Nguyen Thi Phuong Thao, Vietjet President and CEO “Our aim is to be Vietnam and Asia’s new age carrier, known for quality, efficiency and comfort and our A320 fleet has earned us this reputation.”

“This additional order from the fast growing airline Vietjet confirms the success of the A320 Family as the preferred choice for airlines in the single aisle market”, said John Leahy. “We are delighted Vietjet once again selected the A321, our largest single aisle and the perfect partner for the airline’s continued impressive growth.”

Vietjet first took to the skies at the end of 2011 and now operates a fleet of 29 A320 Family aircraft including three A321s, on a network covering Vietnam and a growing number of destinations across Asia. Following today’s announcement the airline has placed firm orders with Airbus for a total of 99 A320 Family aircraft.

The A321 is the largest member of the best-selling single aisle A320 Family. To date, the A320 Family has won more than 12,200 orders and over 6,700 aircraft have been delivered to more than 300 operators worldwide.

Incorporating new engines and the latest technologies, the A320neo Family will bring a step-change reduction in fuel consumption of over 15 per cent from day 1 and 20 per cent by 2020, longer range capability and reduced maintenance costs, as well significantly reduced carbon emissions. With over 4,300 orders received from more than 75 customers since its launch in 2010, the A320neo Family has captured some 60 percent share of the market.

PORTUGAL: TAP Portugal Orders 14 A330-900neo And 39 A320neo Family Aircraft

Airbus efficient aircraft shaping TAP Portugal’s future

TAP Portugal has signed a firm order with Airbus for 53 Widebody and single aisle aircraft including 14 A330-900neo, and 39 A320neo Family aircraft (15 A320neos and 24 A321neos). The aircraft will join TAP Portugal’s fleet as part of its fleet renewal announced by the airline’s new majority owner Atlantic Gateway. As part of the agreement, TAP Portugal is replacing its previous order of 12 A350-900s with the A330-900neo.

“Our latest order for 14 Airbus A330-900neo aircraft and 39 A320neo Family aircraft reflects our ongoing commitment to provide our customers with the next generation of fuel efficient aircraft,” said Fernando Pinto, TAP Portugal CEO. “The A330neo, like the A320neo Family, will give us the flexibility to enter new markets and improve the frequency of existing ones due to its combination of high reliability, low operating costs and exceptional comfort,” he added.

“With this order for 53 brand new aircraft TAP is reborn. This order today shows Airbus' confidence in TAP's future and TAP's commitment to having the best products for its customers. These aircraft are the right aircraft for TAP's current missions and growth markets.

Furthermore, Airbus is proud of the strength and depth of its relationship with TAP and TAP's new shareholders. The A330neo Family is the world’s most cost-efficient, medium-range Widebody and the A320neo Family is simply the single aisle aircraft of choice,” said John Leahy, Airbus Chief Operating Officer - Customers. “The combination of the A330neo and A320neo Families in TAP Portugal’s fleet will allow the airline to reap the benefits of Airbus’ unique aircraft commonality, offering unrivalled efficiencies, with the most modern, fuel efficient and streamlined fleet.”

TAP Portugal is an all Airbus customer, currently operating 43 A320 Family aircraft and 18 Widebody Family aircraft.

The A330-800neo and the A330-900neo are two new members of the Airbus Widebody Family launched in July 2014 with first deliveries scheduled to start in Q4 2017. The A330neo incorporates latest generation Rolls-Royce Trent 7000 engines, aerodynamic enhancements and new cabin features.

Benefitting from the unbeatable economics, versatility and high reliability of the A330, the A330neo reduces fuel consumption by 14% per seat, making it the most cost efficient, medium range Widebody aircraft on the market. In addition to greater fuel savings, A330neo operators will also benefit from a range increase of around 400 nautical miles and of course all the operational commonality advantages of the Airbus Family.

The A320neo Family incorporates latest technologies including new generation engines and Sharklet wing tip devices, which together deliver more than 15 percent in fuel savings from day one and 20 percent by 2020 with further cabin innovations. With more than 4,300 orders received from over 75 customers since its launch in 2010, the A320neo Family has captured some 60 percent share of the market.

UAE: Emirates' New Flight Training Academy To Target More Female Pilots

Major Mariam Al Mansouri from Abu Dhabi

Major Mariam Al Mansouri from Abu Dhabi made headlines in 2014 as the first female pilot to lead strikes against Daesh in Syria.

Emirates will use the new Flight Training Academy it is building in Dubai World Central (DWC) to increase the number of female Emirati pilots employed by the airline.

Emirates is building its own pilot training centre next to its future hub at Al Maktoum International, which it hopes will lessen its reliance or hiring pilots from other airlines or foreign training schools.

“This academy will really fulfil our future demands,” Adel Al Redha, Emirates’ Executive Vice-President and Chief Operations Officer, told Gulf News in an interview on Monday at the Dubai Airshow.

It is also being developed so that Emirates will “have control over the quality and type of training” that is provided to its pilots, he said.

The training centre will see through between 300 to 400 cadets a year. Cadet places at the academy will at first only be offered to Emiratis, who will be provided with a full scholarship by Emirates that includes a salary and accommodation.

But Al Redha said it has been challenging in hiring female Emirati pilots, a position that is globally dominated by men.

Al Redha said the airline does hire “some female Emirati and some female non-Emirati” pilots but that in conservative Gulf the job previously been seen as for men.

More pilots needed

He said this is changing, and expects that the training academy and offer to work for Emirates will increase the number of female and male Emiratis at the airline.

“We’re seeing more interest from female [Emiratis] compared to previous years,” he said.

A spokesperson ahead of Monday’s interview declined to say what the gender breakdown was but did say it has 4,121 pilots from 97 different countries.

But Emirates will need a lot more. The airline has 241 all wide-body aircraft in its fleet today and a further 267 on order.

The training academy will start teaching classes in the third quarter next year when part of the site opens, Al Redha said, with an initial batch of 100 cadets.

The cadets will start flying in the second half of 2017 and graduate by the end of 2019.

Al Redha said there are plans to turn the training academy into a commercial business by offering the programme to other airlines and companies.

Last week, Emirates announced it is buying 22 single-piston engine Cirrus SR22’s and 5 twin-jet Embraer Phenom 100E aircraft for the academy, valued at $39 million at list prices.

Al Redha said the airline could purchase an Airbus A320 or Boeing 737, both single-aisle aircraft and neither of which are operated by Emirates, for the academy but ruled out buying any wide-body aircraft like the Boeing 777.