ISSN 1718-7966 NOVEMBER 26, 2012 / VOL. 366 WEEKLY AVIATION HEADLINES Read by thousands of aviation professionals and technical decision-makers every week www.avitrader.com WORLD NEWS China Eastern’s Airbus buy China Eastern, one of the coun- The average try’s three largest carriers, is to buy age of SAS’ fleet is 60 Airbus A320 family aircraft in a 13.1 years, deal worth $5.39bn at list prices, compared to ‘satisfy the increasing demand to less than for domestic medium and short- five for rival Norwegian, haul passenger air transporta- which tion routes’. The new aircraft will has over be delivered from 2014 to 2017 200 new and will be funded through bank fuel-efficient models on loans. In the same statement, order China Eastern also said it had agreed to sell 10 Embraer and SAS eight Canadair regional jets, val- ued at $247m, to Airbus. Bumpy ride ahead even as SAS strikes union deals Lufthansa talks to Turkish CEO hails ‘airline with a new future’ as staff face 12% wage cuts Lufthansa is in talks with Turk- ish Airlines about expanding their The deal reached by SAS, the has had to deal with strong labour 13.1 years, compared to less than existing code-share agreement to airline co-owned by the govern- unions as well as heavy adminis- five for Norwegian, which also has include areas such as maintenance ments of Sweden, Denmark and tration costs and internal bureauc- a whopping 220 new fuel-efficient and catering, and could even look Norway, and its eight unions is racies built up over six decades. Its Airbus and Boeing planes on order: at bringing Turkish into its joint only a ‘short-term breather’, ac- much younger rival Norwegian it will start offering ‘budget’ fares venture with US carrier United. cording to industry observers. has fewer such costs and pays out to New York and Bangkok next According to The Financial Times, far lower salaries. spring on the first of the eight 787 the move underscores Lufthansa’s Despite reaching an 11th hour Dreamliners to be delivered over continuing unwillingness to part- agreement over swingeing pay, The deal reached last week will the next few years. ner a Gulf airline like Emirates and pension and job cuts that unlocked result in cost savings of around Gustafson was, however, upbeat, Etihad, which it has accused of the extension of a new SKr3.5bn SKr3bn, through the loss of 6,000 saying last week that SAS is an receiving unfair state aid. Turkish ($524m) line of credit from lend- jobs and the consolidation of ad- ers, analysts say that SAS’ ageing ministration in Stockholm. Profit- ‘airline with a new future’. New Airlines, Europe’s fifth largest car- financing coupled with lower costs rier, recently posted a 39% rise in fleet and a heavy focus on short able subsidiaires Widerøe, a Nor- haul routes still leave it vulnerable wegian regional carrier, and SAS will lead to a new ‘product strat- third-quarter profits to TRY704.6m egy’, with two-tier class service ($392m), surpassing analyst esti- to aggressive competition from Ground Handling will be sold off. low-cost rivals like Norwegian, on domestic flights, new onboard mates of a TRY452m profit. CEO Rickard Gustafson also bowed Easyjet and Ryanair. entertainment options, airport One more hub for AirAsia to pressure over executive salaries, lounges, aircraft and routes - many Aviation analyst Anders Lidman agreeing to a 20% pay cut. Man- AirAsia is set to add only one more of them at lower fares. told Sweden’s Aftonbladet that agers will earn up to 17% less major hub to its network as it seeks SAS’ claim that it will make money while employee pay will be cut by a Norwegian analyst Einar Sørensen to increase annual profits from its in the European market “makes no maximum of 12%. said it was in the ‘best interests of three existing main hubs, Malaysia, sense. Lufthansa, Air France, Finnair all Scandinavians’ to keep SAS in Thailand and Indonesia, to RM1bn Even so, SAS has a long way to go and KLM have all said that Europe- the air, not least because its failure ($323m) each in the next three to narrow the gap with Norwegian. an routes are unprofitable. It’s hard would have left Norwegian as the years. CEO Tony Fernandes said The cost differential is marked: SAS’s to understand SAS’s thinking”. monopoly carrier on many routes he was looking at Taiwan, South unit cost per available seat flown is within the region. He noted that Korea, Vietnam and India as can- SAS has been particularly hard-hit SKr0.86, compared to Norwegian’s SAS still carries around 50% of didates for a new hub, with Laos, by competition from Norwegian, SKr0.53, which has translated to Norwegian passengers and is an Cambodia and Myanmar having with which it competes on 60% higher ticket prices. Furthermore, important carrier of mail and car- the potential for a smaller one. of its routes. As a legacy carrier, it the average age of SAS’ fleet is go across Scandinavia. tpaerospace.com WHEELS AND BRAKES COST PER LANDING LARGE READY-TO-GO A330, A321, A320 SERIES, A310, A300, B747, B767, B757 AND B737 SERIES INVENTORIES OF WHEELS, BRAKES AND TIRES ARE AVAILABLE IN COPENHAGEN, HAMBURG, LAS VEGAS AND SINGAPORE FOR YOUR PICKING. FULL-SERVICE · ALL-INCLUSIVE · PLug’n’PlAY Copenhagen · Hamburg · Las Vegas · Singapore 3 AviTrader WEEKLY AVIATION HEADLINES AIRCRAFT & ENGINE NEWS Turkish Airlines orders GE90-powered Boeing 777-300ER aircraft Turkish Airlines (THY) ordered 15 GE90-115B-powered Boeing 777-300ER aircraft with options for five additional aircraft. Delivery will begin in 2014. THY has also signed a long- BOC Aviation signs agreement with term OnPoint solutions agreement for the maintenance, repair and overhaul of its new Lion Air for 9 Boeing aircraft GE90-115B engines. The total engine order and OnPoint solution agreement is valued at BOC Aviation concluded a deal with PT Lion more than $1.4bn. Mentari Airlines (“Lion Air”) for six Boeing Additionally Turkish Airlines selected CF6-80E1 engines to power its fleet of 15 firm Airbus 737-800 and three 737-900ER aircraft. The A330-300 aircraft. Delivery will begin next year. THY has also signed a 12-year OnPoint so- first aircraft, a 737-900ER, was delivered to lutions agreement for the maintenance, repair and overhaul of its new CF6-80E1 engines. the airline in November; the remaining eight aircraft are scheduled to deliver through to the first quarter of 2014. This deal marks the first time that BOC Aviation has worked with Indonesia’s largest private airline. Lion Air, with just under 50% share of In- donesia’s domestic air travel, is continuing to expand, focusing on regional routes from Indonesia. The 737-900ERs from Lion Air are the first of the aircraft type to join BOC Avia- tion’s fleet. AWAS delivers seventh Airbus air- craft to Royal Jordanian Turkish Airlines adds to its fleet of Boeing 777-300ERs Boeing AWAS delivered a new Airbus A320-200 aircraft to Royal Jordanian, the final of H75 and H85 Turboprop engines re- twin helicopters. The aircraft will be equipped seven new aircraft as part of an agreement ceive EASA engine certifications for Search and Rescue (SAR) operations with reached in early 2011. This placement is the first helicopter scheduled to be delivered part of Royal Jordanian’s major fleet renewal GE Aviation’s new H75 and H85 turboprop in the spring of 2013 and the final one in programme, to offer its customers superior engines received engine type certification 2014. The Swedish Maritime Administration comfort while driving enhanced efficiencies from the European Aviation Safety Agency is the authority responsible for Maritime and across its network. (EASA). The two new engines are derivatives Aeronautical Search and Rescue Services in of the H80 engine. The China Aviation In- Sweden and will operate the AW139 helicop- BOC Aviation to lease two new A321- dustry General Aircraft Co., (CAIGA) selected ters from five bases across the country. 200 aircraft to Etihad Airways GE Aviation’s new H85 turboprop engine to power CAIGA’s five-seat Primus 150 business BOC Aviation signed agreements for the GECAS delivers leased Boeing 737-500 aircraft. This is the first application for the to Lineas Aereas De Mocambique lease of two new A321-200 aircraft to Eti- H85 turboprop engine. had Airways. Both aircraft, to be equipped GE Capital Aviation Services Limited (GECAS) with IAE V2533-A5 SelectOne engines, Swedish Maritime Administration announced delivery of a leased Boeing 737- are scheduled to be delivered in the sec- orders seven AW139 Helicopters 500 to Lineas Aereas De Mocambique (LAM), ond quarter of 2014. The two aircraft will the flag carrier of Mozambique. LAM, along be leased by Etihad Airways as part of a AgustaWestland, a Finmeccanica company, with its subsidiary MEX (Mozambique Ex- planned batch of Airbus A320s which the signed a contract with the Swedish Maritime press), operates 10 aircraft to destinations in airline is converting to A321s. Administration for seven AW139 intermediate Africa from its base in Maputo, Mozambique. Available Engines for Lease www.willislease.com CCFM56-3C1 PW121 (ATR) A340-300 AE3007 CFM56-5A3 PW121 (Dash 8) APU GTCP-331-200(ER) CFM56-5B4/3 PW124B ATR 42-300 & 72-200 CFM56-7B24/3 PW127F QEC for V2500 (New) CFM56-7B24 (NTI) PW150A V2533-A5 V2500-A1 V2527-A5 PW4168APW4168A CF34-3B1 Contact Anne Lee @ +1.415.408.4769 Ten Years and Still Climbing Ten years ago, a small team set-off with a vision to build a company focused on providing services to the airline industry.