China Lessor CALC Talks With Airbus, Boeing to Buy 200 Jets

China Aircraft Leasing Group is in talks with Airbus and Boeing to order as many as 200 planes as the state-backed lessor seeks to meet surging demand from Asian carriers.

The company is looking at single-aisle and wide-body jets from the planemakers, with the bigger aircraft slated to account for 20 percent of the order, Chief Executive Officer Mike Poon said in an interview in Sydney on Monday. The models the lessor is considering include the Boeing 737 and Airbus A320 for short-haul flights, and the 787 and the A350 for long-haul routes, he said.

The leasing company, which has shareholder approval to order the aircraft this year, is expanding its fleet to help meet demand in Asia, a region Boeing estimates will need 16,050 new aircraft valued at $2.5 trillion by 2036. China alone is likely to surpass the U.S. as the world’s biggest air travel market by as early as 2022, according to IATA forecasts.

While the leasing company is weighing both the manufacturers, China is also under pressure from U.S. President Donald Trump to cut its annual trade surplus by $200 billion. Airliners are among the biggest-ticket items that can be bought to help meet such targets reached in trade negotiations.

Boeing rose 1.7 percent to $362.74 at 9:47 a.m. in New York, while Airbus was little changed at 99.54 euros in Paris.

A decision by China Aircraft Leasing, known locally as CALC, will depend on the pricing and the available slots with the manufacturers, Poon said while attending the International Air Transport Association’s annual meeting in Sydney.

CALC, where government-controlled China Everbright Group has a 33.6 percent stake, was the first Asian plane leasing company to list in Hong Kong.

It has previously made large orders. In December, the company agreed to buy 50 Airbus single-aisle jets with a combined list price of $5.42 billion.

In 2016, the lessor agreed to purchase 60 ARJ21 regional jets from state-owned Commercial Aircraft Corp. of China Ltd., in a deal valued at $2.3 billion in list prices. In 2014, Airbus won a pledge from the lessor for the purchase of 100 planes valued at $10.2 billion.

As of May 28, CALC had 114 aircraft, 101 of them belonging to the A320 family. Seven are 737s and six are A330s. It had 140 Airbus planes and 50 Boeing aircraft on order, along with 20 C919 jets made by China’s Comac.

The rapid growth of mainland Chinese carriers and the entry of many budget operators across Asia has meant billions of dollars in orders for Airbus and Boeing. Asia Pacific is likely to have 3.5 billion passengers by 2036, adding more than double the forecast for North America and Europe combined, according to estimates by the International Air Transport Association.

(Kyunghee Park - Bloomberg Business)

Air NZ to lease two Boeing 777s to cover for 787s with Rolls-Royce engine problems

* Compressor in Trent 1000 package C engines not lasting long
* One dry lease, which does not include crew, has been signed
* Mulling long-haul aircraft purchase to replace ageing 777-200s
* Considering Airbus SE A350, Boeing 777X and 787-10 models

Air New Zealand will lease two Boeing 777s to cover for 787-9s with Rolls-Royce engines that have maintenance issues, its chief executive said.

The compressor in the Trent 1000 package C engines is not lasting as long as expected, requiring inspections and forcing airlines to ground aircraft while the checks take place.

"Any one point in time we are planning to have between zero to two aircraft that will be cycling off to have aircraft inspections and/or maintenance," CEO Christopher Luxon told Reuters on the sidelines of an airline industry conference.

"Therefore we will have two dry-lease aircraft we can operate so we can restore the schedule and keep our customers moving," he said on Monday.

He said one dry lease, which does not include crew, has been signed and another should be agreed soon.

Air New Zealand is also examining the purchase of future long-haul aircraft to replace its fleet of eight ageing Boeing 777-200s.

A request for proposal should be issued in March-April next year, with deliveries expected from 2022, Luxon said.

Air New Zealand is considering the Airbus A350 as well as the Boeing 777X and 787-10 models, he said, with the aim of launching longer routes like Auckland-New York and Auckland-Brazil. Luxon also said international yields, a proxy for airfares, were rising as the airline looks to recover increased fuel costs. The airline recently raised domestic ticket prices by 5 percent due to rising costs.
 

(Jamie Freed - Reuters)

Norwegian Air swaps plane on Oakland-Barcelona flight, cuts Stockholm

Rolls-Royce engine woes hit several Bay Area flights

If you're booked on Norwegian Air for a summer trip between Oakland and Barcelona, do not be surprised if you're greeted at the gate by another airline's jet.

Not to worry though — the odd-looking jet will get you to the correct destination. And a lucky few will get to lie flat for the ride.

Norwegian recently signed a deal with Portugal-based charter airline Hi Fly to operate some of its flights across the Atlantic this summer. Several Norwegian flights will be flown by wet-leased Hi Fly Airbus jets, including the OAK-BCN route.

According to Norwegian, the regularly scheduled Boeing 787 Dreamliner will be replaced by a Hi Fly A340-500 on four of the five scheduled weekly flights from June 1 until July 27.

"The operator of our flights is visible to customers throughout the booking process on our website and customers already booked on the affected flights have been contacted," said Anders Lindström, U.S. communications director for Norwegian.

Although it's a different jet operating the route, we're told many of the passenger amenities will be similar (or better) to what's on offer aboard the Norwegian Boeing 787.

According to Hi Fly, the jet being used on the BCN-OAK route comes equipped with 273 seats. There are 12 seats in a small business class cabin and 261 economy class seats. On the Norwegian Dreamliner it replaces, there are 32 premium seats and 259 economy seats.

What's nice here, if you are booked in Premium Class on Norwegian, is that you could get a lie-flat business class seat on the Hi Fly jet. Norwegian's premium seats recline, but they do not like flat. But with 20 fewer premium seats per flight on the Hi Fly jet, some passengers are bound to get downgraded to economy, and many are complaining about that.

Seat back monitors loaded with inflight movies and TV shows are available at every seat. We looked, but could not find an answer to whether there is in-seat power, so it's best bring your own external travel battery to keep phones charged.

"We would like to apologize as we appreciate this change may not meet passengers' expectations, so we're giving passengers the option to rebook or receive a full refund free of charge if they no longer wish to travel," Lindström said of the change to the Hi Fly A340.

Why the swap? In January, Norwegian announced it would be replacing the Rolls-Royce Trent 1000 engines on all 21 of its Boeing 787 Dreamliners. Many of the jets are being pulled out of service for the work to be done — which explains why the carrier has substitute airplanes instead of cancelling scheduled services.

Serious issues have plagued the engine model, including concerns about corrosion of the turbine blades towards the back end of the engines. Rolls-Royce asked airlines to conduct lengthy inspections of the engines by next month to check for problems.

The troubles have been a black eye for the engine-maker, and Rolls-Royce has apologized to airlines for the impact to flights during the high-demand summer travel season.

"We fully recognize the unacceptable levels of disruption our customers are facing," said Chris Cholerton, the president of Rolls-Royce's Civil Aerospace division. "We are intensely focused on minimizing this and we have set our teams the challenge of doing everything we can to recover our customers' operations as swiftly as possible."

Many other airlines that operate Dreamliners powered by the same engine have had to cancel flights and delay planned services. (ANA, Air New Zealand, Virgin Atlantic and British Airways are some of the carriers).

Some British Airways Boeing 787 flights between London-Heathrow, San Jose, Calif. and Los Angeles, Calif. have recently been nixed because of the Rolls-Royce engine issues. Virgin Atlantic has also replaced one of its two Boeing 787-9 frequencies to San Francisco with the carrier's older Airbus A340-600s for the month of June.

Norwegian to cut Stockholm-Oakland route

In a separate move, Norwegian announced this week it would convert the route between its Stockholm, Sweden hub and Oakland from a year-round to a summer seasonal route. Stockholm was one of Norwegian's original two destinations when it began flying to Oakland in May 2014.

The carrier announced its decision after a new aviation emissions tax went into effect in Sweden in April. The tax would bill airlines up to $48 per passenger for flights leaving the European Union and $7 for flights traveling within the E.U.

A spokesperson for the airline said wintertime flights for the route were not yet available for sale and there were no passengers to re-accommodate with the change.

The final Stockholm-Oakland flight of the year operates Oct. 26.

(Chris McGinnis & Tim Jue - San Francisco Chronicle)

Sun Country employees will vote on new airplane paint scheme

Sun County Airlines will unveil a new paint scheme for its aircraft, and the carrier’s employees will decide the new look.

Sun Country employees are being asked to vote on a new paint scheme for the carrier's planes. These are the four possible combinations.
(Photo: Sun Country Airlines)

The airline rolled out four potential airplane “liveries” on Monday. Sun Country's effort to update ist look comes as the former niche low-cost carrier remakes itself into a no-frills budget airline. Sun Country has already said it will eliminate its first-class cabin as part of the transition. Now the carrier's paint scheme is set for an overhaul.

Brian Davis, Sun Country’s Senior Vice President – Commercial, announced the plan Monday in a memo to employees.

“As we move through this transition, it is important that we signal to our customers that, while we fully intend to stay connected to our roots, a new day is on the horizon. One of the most visible and obvious ways we can do that is with our aircraft, which thousands of passengers and potential fliers see and experience every day,” Davis said in the employee memo. “Today, I would like to announce that we will also be refreshing the exterior of our aircraft with a new livery!”

As for the vote, Davis described that as a way to give employees a voice in Sun Country’s transformation.

“It is important to me that as we build, we build together,” he said in the note to workers. “It is imperative that we not only listen to the feedback of our customers, but also the expertise and input of our most valued asset – you!”

Workers will vote for one of two paint schemes for the fuselage. They'll also vote for one of two designs for the tail. The combinations mean there will be four possible paint schemes for Sun Country’s new look.

Workers won’t have much time, though. The cutoff for voting will come at 5 p.m. CT on Tuesday (June 5).

“The livery and tail combination with the most team member votes will be implemented on all aircraft coming into the fleet by the end of this year,” Davis said.

Planes with Sun Country’s existing livery will keep that paint scheme until their next regularly scheduled repainting.

“We will not retroactively paint aircraft outside of regular paint schedules, but will phase in new livery as bring aircraft into the fleet and with regularly scheduled repaints of current aircraft,” Sun Country spokeswoman Jessica Wheeler said in an email to USA Today's Today in the Sky blog.

Wheeler said Sun Country did not have a specific timeline for how long it would take to update the company’s entire fleet of about 20 aircraft. She did say planes typically get repainted about once every seven years, though the schedule may vary by individual aircraft.

As novel as the effort sounds, Sun Country will not be the first U.S. carrier to put the look of its planes to an employee vote.

American rolled out a similar vote to its employees in 2013, letting workers pick from one of two designs following its merger with US Airways. American had just announced a new paint scheme for its planes, and then-new American CEO Doug Parker decided to let workers vote whether to keep that look (they did) or choose a modified look that kept American's previous tail design.

(Ben Mutzabaugh - Today in the Sky / USA Today)

Airbus sales chief defiant on A330neo demand as Boeing seals new win

The head of airplane sales at Airbus dismissed concerns about a sharp drop in orders for the A330neo jet and predicted European wide-body demand would start to recover this year as rival Boeing extended a series of wins in the lucrative segment.

"The world is still full of opportunities in terms of wide-bodies. We have a lost a couple of campaigns in the West and there are other campaigns around the world. I am not personally in a panicking mode about the A330neo," Chief Commercial Officer Eric Schulz told Reuters on Monday.

Speaking on the sidelines of an airlines meeting in Sydney, Schulz declined to give a numerical sales target for 2018 wide-body orders but said, "We will see, I think we will be ok. I can see from the dynamics in the market and what we have in the pipeline and what we have already negotiated."

The A330neo is a derivative of Airbus's most-sold wide-body jet, the A330 series, whose fortunes are widely monitored by investors as one of its two main sources of profits and cash.

Airbus has lost a series of U.S contests for sales of the 250-300-seat A330neo, followed by a decision set to be approved this week by the owners of India's Vistara to order six Boeing 787s instead of A330neos, two industry sources said. The same airline may expand a leased fleet of A320neos.

Airbus and Boeing declined to comment and Vistara did not respond to a request to comment on the order, reported earlier by Bloomberg News.

Demand for wide-body jets has weakened recently because of oversupply, but Boeing has extended a traditional lead in that part of the market thanks to a spate of orders for its 787 and a rebound in 777 demand, assisted by a recovery in freight demand.

Airbus typically sells 4 in 10 big jets but reaped just 16 percent of wide-body orders between January and April. Adjusted for cancellations, net orders slumped into negative territory.

Analysts say a U.S. decision to revoke export licenses for jets sold to Iran, after pulling out of an international nuclear sanctions deal, could deepen Airbus's wide-body woes since IranAir's order for 100 jets had included 28 A330neos.

Schulz said Airbus would not immediately reflect the collapse of the Iran deal in its order book as it uses a grace period for U.S. licenses to "study the political situation".

Still, industry watchers say the European firm has 16 unfilled production slots for A330s in 2019, raising the prospect of further output cuts if it does not win new sales.

Airbus hopes China could be a promising market.

Schulz said one factor weighing on A330neo sales was the relatively young age of many of the previous A330 models in service, meaning some operators were not yet ready to upgrade.

"I believe that especially for people who are operating the A330, the A330neo is a nice and easy transition towards an aircraft that generates very good efficiency," he said.

The International Air Transport Association (IATA) said on Monday higher fuel prices were supporting new aircraft demand and that the average size of aircraft was rising. Schulz said on the sidelines of IATA's annual meeting that wide-body jet demand would soon recover to reflect the underlying fundamentals.

"The market is not that fast but I can sense talking to the airlines that within the next 18 months to 2 years we will have much more dynamism in the market," he said.

(Tim Hepher - Reuters)

Hawaiian Airlines Airbus A321-271N (c/n 7959) N204HA "Ohi a lehua"

Departs from Rwy 30 at Long Beach Airport (LGB/KLGB) bound for Daniel K Inouye International Airport (HNL/KHNL) Honolulu, Hawaii on June 3, 2018.

(Photos by Michael Carter)

jetBlue Airbus A320-232 (c/n 1123) N503JB "Blue Bird" / tail livery - "Blueberries"

Climbs from Rwy 30 at Long Beach Airport (LGB/KLGB) as "JBU406" bound for Seattle-Tacoma International Airport (SEA/KSEA) this morning, June 3, 2018.

(Photo by Michael Carter)

Midwest Express comeback bid moves forward

Midwest Express Airlines appears to be one step closer to returning to the skies.

Investors trying to revive the once-popular, now-defunct airline brand have committed to an initial round of funding to bring it back, reports the Wisconsin State Journal of Madison.

So far, the group has raised $750,000 in the restart effort, according to a federal filing. In its heyday, Midwest was known for extra-spacious seats, high-end service and warm, baked-onboard chocolate chip cookies.

“Our goal is to bring back Midwest Express — the brand and all the brand elements that made it so popular the first time around,” Christine Williams, spokeswoman for the company’s three officers, tells the State Journal. “This is just the first step in a series of steps we need to take.”

The move to bring back the Milwaukee-based airline is not a surprise. The Milwaukee Journal Sentinel reported in August 2017 that such a movement was afoot.

Now officials with the new Midwest Express effort say, perhaps optimistically, that it could be flying again by 2020.

“We’re looking at aggressively getting this going as quickly as we can. We would love to have something in the next one to two years, at the most,” Williams says to the State Journal.

One option, she says, would be to buy a small, existing carrier with a minimal fleet and “key staff in place.” Unsaid by Williams is that such might also could help with obtaining an Air Carrier Certificate needed by a commercial airline.

Launched in 1984, the original Midwest Express grew throughout the 1990s. By the early 2000s, the carrier – then under the name Midwest Airlines – had become a popular niche carrier with hubs in Milwaukee and Kansas City. Though its heaviest presence remained in its namesake region, Midwest's network had expanded to include big cities across the U.S.

But the company ran into trouble in 2008, when the price of oil spiked and the U.S. economy plunged into recession. Eventually, Midwest was acquired by regional carrier Republic Airways which merged it with another of its acquisitions Frontier Airlines.

The Frontier name was expanded to the entire operation in 2011, part of Republic’s ultimately unsuccessful experiment at running a standalone carrier. Even under Frontier, most of Midwest’s legacy routes and service options, like the cookies, were eventually discontinued as Frontier struggled under Republic’s management.

Frontier was eventually sold by Republic and – under new ownership – has since rebranded itself as a no-frills, fee-heavy “ultra low-cost carrier.”

In the meantime, the backers of the Midwest Express reboot are pressing ahead. They acknowledge hurdles remain, but they promise one thing is certain if the effort is successful.

“Oh, yes, chocolate chip cookies,” Williams tells the State Journal when asked whether they’d make a comeback a comeback of their own.

(Ben Mutzabaugh - Today in the Sky / USA Today)

Hawaiian Airlines Airbus A321-271N (c/n 8092) N205HA "Kalo"

Delivered to the carrier on May 11, 2018, Hawaiian Airlines third A321Neo operated flight "HAL69" between Long Beach Airport (LGB/KLGB) and Daniel K Inouye International Airport (HNL/PHNL) Honolulu, Hawaii this morning.

(Photos by Michael Carter)

Boeing Wins Dreamliner Order From Singapore Air's India Affiliate

Boeing's Dreamliner is poised to win an order from Vistara, the Indian affiliate of Singapore Airlines Ltd., dealing a blow to Airbus's competing A330neo, according to people familiar with the development.

Vistara opted for six 787s with an option to buy four more, according to the people, who asked not to be identified as the information isn’t public. Vistara is considering between the 787-9 and the 787-10 version, which could fly non-stop to European destinations such as London, said one of the people. The most expensive model of the Dreamliner has a list price of $325.8 million, making the order from the Indian carrier worth as much as $3.3 billion, including options.

Airbus was forced to cut back on production plans for its newest wide-body jetliner after losing a series of major contracts to arch-rival Boeing. Boeing has been increasingly aggressive on pricing, especially in competitions with the A330neo and the 787. This deal adds to other key Airbus losses in similar contests including Boeing getting Hawaiian Air to cancel its A330neo order in favor of the 787 and beating out its European rival at American Airlines Group Inc. switched an order for the A350 to the 787 over the A330neo.

A spokesman for Airbus declined to comment on speculation over confidential talks with customers. A spokesman for Boeing wasn’t immediately available for comment outside business hours. A Vistara spokeswoman said the airline will announce its fleet expansion plan at an appropriate time.

(Benjamin Katz and Anand Krishnamoorthy - Bloomberg Business News) 

Boeing sells three Dreamliners to Chinese jet lessor BOC Aviation

Chinese aviation leasing company BOC Aviation Ltd. said Friday it has agreed to buy three new Boeing 787-9 Dreamliners.

The order is worth $845 million at current list prices and pushes the Singapore-based Bank of China aviation affiliate's total orders for Dreamliners to 14, BOC said in a filing with the Hong Kong Stock Exchange.

The deal supports Boeing's decision to boost Dreamliner production from 12 a month to 14 a month in 2019 and offers a bump in business to companies in the 787 supply chain in the Seattle region and around the world.

Boeing did not respond to a request for comment.

BOC said its board of directors approved the deal because it is in line with the growth strategy to build its balance sheet and rental revenues "by investing in modern, efficient, in-demand aircraft."

BOC Aviation Managing Director and CEO Robert Martin said all three jets have been placed on long-term leases with Spanish airline Air Europa. They're scheduled to be delivered in 2020.

“We are delighted to further our partnership with Air Europa, as it builds its longer haul capabilities,” Martin said in a news release.

Launched 12 years ago, Air Europa s the third-largest airline in Spain and the country’s first privately-owned company to operate domestic scheduled flights. Air Europa operates nearly 50 aircraft.

Air Europa is owned by the Globalia tourism group and has been a member of SkyTeam airline alliance since September 2007.

In March, BOC Aviation took over an order for six Dreamliners that had originally been placed by Norweigian Air Shuttle.

Under that deal, Norwegian leased the planes under a long-term operating lease with an option to buy them back.

BOC Aviation, which owns and operates a fleet of 291 jets and manages 30 more for their owners, backstopped another deal for Boeing jets a year ago.

Days after All Nippon Cargo of Japan canceled an order for two Boeing 747 freighters, fast-growing BOC Chinese scooped up the jumbos and assigned them to Russian carrier AirBridgeCargo Airlines on long-term leases.

Boeing invested $30 million in BOC Aviation 's shares when the leasing company went public in 2016.

The Boeing investment came after BOC Aviation placed a 2014 order for 71 Boeing 737 Max jets, the first of which was delivered two weeks ago to BOC customer Corendon Airlines, based in Turkey.

(Andrew McIntosh - Puget Sound Business Journal)

Aloha Friday sees Hawaiian Airlines hoʻolauleʻa New Long Beach Service

(Photo by Michael Carter)

Hawaiian Airlines today welcomed guests aboard its inaugural flight between Long Beach Airport (LGB/KLGB) and Honolulu's Daniel K. Inouye Airport (HNL/PHNL) with hula performances and lei as the carrier celebrated the start of daily non-stop service with new Airbus A321neo aircraft. Hawaii's hometown airline also treated guests departing Long Beach to an "Aloha Friday" beach bag filled with Hawaiian vacation essentials, including reef-safe lip balm from its partner Raw Elements, OluKai island footwear coupons, and 250 HawaiianMiles.

Hawaiian music along with Hula Dancers celebrate the carriers new service here at Long Beach Airport.

(Photo by Ric Curiel)

Long Beach becomes Hawaiian's 12th U.S. gateway city in an expanding network that offers travelers unrivalled access to the Hawaiian Islands. The airline is offering a promotional one-way fare of $229 for LGB-HNL flights for travel from Aug. 27 through Nov. 14 when booked between June 1-14.

"We're thrilled to grow our West Coast presence by offering Southern California travelers another convenient gateway to experience our award-winning Hawaiian hospitality," said Peter Ingram, president and CEO at Hawaiian Airlines. "We look forward to continuing to delight guests with our superior product and service in the comfort of our newest aircraft."

(Photo by Ric Curiel)

Hawaiian's Flight 70 departed HNL at 12:30 p.m. yesterday, arriving at LGB at 9 p.m. The return flight, HA 69, departed LGB at 8:30 a.m. today, with an 11:40 a.m. estimated arrival at HNL that gives travelers the afternoon to explore O'ahu or connect to one of Hawaiian's seven neighbor island destinations.

"I am delighted that Hawaiian Airlines is now offering service to Honolulu from Long Beach Airport," said Long Beach Mayor Robert Garcia. "Long Beach airport is consistently ranked one of the best airports in the U.S. and this announcement is further proof that airlines are eager to fly from our airport, which is good news for local travelers."

The inaugural flight receives a traditional water canon salute as it taxies to Rwy 30 for departure.
(Photo by Ric Curiel)

Hawaiian will operate its LGB-HNL service with the newest addition to its fleet, the narrow-body Airbus A321neo aircraft. The highly efficient, mid-range aircraft complements Hawaiian's wide-body fleet currently used for service between Hawai'i and other U.S. gateway cities, along with 10 international destinations.

Hawaiian's 189-passenger A321neo features 16 luxurious leather recliners in First Class, 44 Extra Comfort premium economy seats, and 129 Economy seats. In addition to Hawaiian's warm hospitality, including complimentary meals, guests enjoy wireless streaming in-flight entertainment, access to USB outlets, and additional overhead stowage space.

 (Photo by Michael Carter)

(Photo by Michael Carter)

Hawaiian will announce additional A321neo routes between the West Coast and the Hawaiian Islands as it welcomes a total of 18 aircraft through 2020. By September, in addition to operating the LGB-HNL service, the A321neo will be Hawaiian's dedicated aircraft on the following routes: San Diego and Kahului, Maui; Portland and Honolulu and Kahului; Oakland and Honolulu, Kahului and Līhu'e, Kauai; and Los Angeles and Līhu'e and Kona on the Island of Hawai'i.

(Hawaiian Airlines Press Release)

Coulson prepares Boeing 737 Fireliners for wildfire season

(Coulson)

A Canadian company that's converting old Boeing 737 passenger jets into firefighting bombers is hoping its first Fireliner jet will be available this summer.

Coulson Group CEO and President Wayne Coulson, owner of one of the world's largest wildfire-fighting aviation companies, hopes his first bright red 737 Fireliner will ready for service in July or August.

"We're on a fast track," Coulson said. "It's quite an intricate process we have to go through."

Coulson's work is the first time anyone has tried to transform a 737 into a firefighting aircraft. A year ago, Coulson Aviation bought five old Southwest Airlines 737-300 jets, announcing plans to convert them for his fleet of wildfire-fighting aircraft.

Coulson Aircrane and its U.S. subsidiary, Coulson Aviation, have aerial firefighting bases at the British Columbia headquarters and in Reno, Nevada, flying a fleet of helicopters, turboprops and converted C-130 Hercules aircraft.

Over the past year, Coulson said his company has worked to convert three of the twin-engine jets and spent this spring running tests. One of the aircraft is completed, and a second is in progress.

He hopes to have five jets finished by 2020, but that's going to be a tough deadline to meet. The Federal Aviation Administration requires elaborate testing to certify aircraft as safe for pilots to operate, especially after airframes are modified.

And Coulson must prove its jet can actually hit targets when fire-bombing before the Department of the Interior allows the aircraft win government contracts to fight wildfires.

Coulson and its Fireliner must pass what the industry calls "grid tests." Coulson will load the jet with retardant and fly over a pre-set grid, aiming to hit targets in the zone with sufficient accuracy before a Fireliner can win contracts.

"Taking it out to the grid really allows out customer to see the performance of the aircraft," Coulson said.

Those tests are scheduled for June 11.

Coulson's team also has to calibrate the highly pressurized tanks inside the jet that carries the fire retardant. Those tests are done with water.

Coulson workers fill the Fireliner's tanks and then straddle the jet over a 10,000-gallon cement pond, into which the pressurized water is unloaded.

Before a Fireliner enters service, it will undergo one final test, flying with a full load at 30,000 feet "to see if there are any concerns," Coulson said.

THE COULSON FIRELINER

Dozens of engineers and metal workers spent more than 100,000 hours to design, engineer, manufacture and install systems on Coulson's Fireliner. Features include:

Coulson's patented fire retardant aerial delivery system (RADS).

Special pressurized tanks that can hold 4,000 gallons of water or fire retardant and drop 2,200 gallons per second in a flyover.

Room for 63 firefighters to fly into airports near blazes.

(Andrew McIntosh - Puget Sound Business Journal)

Rolls-Royce Says Boeing 787 Groundings Will Get Worse

Rolls-Royce is expecting a sharp increase in the number of Boeing 787 Dreamliner planes that will have to be grounded because of faults with the engine maker’s Trent 1000 turbine.

The spike will occur ahead of a deadline next month for mandated inspections forced by durability problems, Rolls said in an emailed statement. The number of parked Dreamliners is expected to peak at about 50 from the current level of 35, a person familiar with the matter said, as the aircraft await repairs.

About 80 percent of the Package C engine variant, which debuted with Boeing’s marquee 787-9 jetliner, have undergone initial checks for cracking or signs of wear and tear on turbine blades, the person said. Just under a third of those engines have failed the initial checks required by regulators for planes that fly more than two hours and 20 minutes from the nearest diversionary airport.

“We fully recognize the unacceptable levels of disruption our customers are facing,” Chris Cholerton, the company’s president of civil aerospace, said in the statement. “While we expect the number of aircraft affected to rise in the short term as the deadline for the completion of initial inspections approaches, we are confident that we have the right building blocks in place to tackle the additional workload.”

Rolls-Royce shares fell 0.6 percent to 822 pence as of 8:24 a.m. in London on Wednesday. 

Shorter Routes

The engine woes have prompted some carriers to place their 787s on shorter routes, giving them more operating time ahead of a June 9 inspection deadline mandated by the Federal Aviation Administration. Since the FAA’s directive in April, Rolls has put measures in place to triple the number of engines it can service at any time, including the development of a new ultrasonic testing technique that can be performed while the turbine is still attached to the aircraft.

The tripling of capacity and the number of Dreamliners likely to be grounded were reported earlier by the Financial Times.

Additional measures to boost capacity at sites in Singapore, London, and Derby, England, are underway, the company said. The problems center on potential cracking of the Trent’s intermediate pressure compressor blades.

Rolls has also reduced maintenance turnaround times and is accelerating the redesign of the blades that have caused the latest disruption. That part has already been installed on a test engine that will fly in June, and the final design will be rolled out to customers later this year -- ahead of the previous guidance of early 2019.

Restructuring Plan

The stepped-up inspections won’t cause any additional financial impact, Rolls said. The company is due to unveil a new restructuring plan authored by Alvarez & Marsal at its next capital markets day on June 15.

Chief Executive Officer Warren East has said Rolls will reduce discretionary spending to offset the additional spending needed for overhauls and to keep to a key target of reaching 1 billion pounds in free cash flow by 2020.

“The scale of the additional Trent 1000 maintenance cost remains to be seen, and we’re not sure how Rolls can miraculously offset this,” Rob Stallard, an analyst at Vertical Research Partners, said in a note earlier this month. “The company has not disclosed that much, and this leaves us concerned that the maintenance costs could further escalate.”

Boeing has meanwhile positioned Keith Leverkuhn, best known for leading the development of the upgraded 737 months ahead of schedule, between Derby and Singapore to help Rolls work through the escalating engine problems.

“We are drawing on the full resources of Rolls-Royce to address the issue and I’ve seen great teamwork and innovative thinking both across our organization and in our partnership with Boeing,” Cholerton said.

(Benjamin D Katz and Julie Johnsson - Bloomberg Business)

Chinese Aircraft Maker Comac Gets Bids for Wide-Body Engines

Commercial Aircraft Corporation of China (Comac) is a homegrown Chinese airplane builder that recently began test flights on its new C919 single-aisle passenger jet. The company has joined up with Russian firm United Aircraft Corporation to design and build another passenger jet, the CR929, a dual-aisle, wide-body plane that, unlike the C919, is intended to be a new design from the ground up.

According to a Wednesday report from Reuters, the China-Russia partnership has now received bids from seven aircraft engine makers to provide the engines for the CR929. That number seems to be a little high.

First, the usual suspects: General Electric Co., the Pratt & Whitney division of United Technologies Corp., and Britain’s Rolls-Royce. Airline industry journalist Jon Ostrower adds Russia’s Aviadvigatel and China’s own ACAE. But that’s only five.

A couple of others that might be on the bidder list are Engine Alliance, a joint venture of General Electric and Pratt & Whitney, and French aircraft engine maker Snecma. One more outside possibility is CFM International, a joint venture between GE and Snecma’s parent company Safran.

According to Reuters, Comac and its Russian partner will create a team to analyze the proposals with a goal of completing an evaluation by the end of this year.

There are a few political hurdles here, as well as the usual assortment of technical ones. China will want the engines to be designed and built in the country and almost certainly will demand a transfer of the technology in exchange for the contract. This sort of arrangement has worked well with automakers and consumer electronic products, but giving away the design of a state-of-the-art aircraft engine that will take years and billions of dollars to build is likely to raise concerns with all but the Russian and Chinese governments.

At one time the CR929 was once expected to use engines from GE or Rolls-Royce, but China has since announced its intention to design and build its own engines and has consolidated several state-owned entities into a single company, Aero Engine Corp. of China (AECC), to do the work. The government announced last September that a domestically built engine is expected for the C919 but gave no estimated delivery date.

The larger CR929 remains a long way from entry into service. Preliminary design work is expected to be approved next year and design documentation is due in 2021, with the first test flight coming in 2023 and entry into service in 2026.

(Paul Ausick - 24/7 Wall St)

Boeing sells four VIP business jets so far in 2018 and expects more deals

Boeing has won orders for four new luxury business jets in 2018, including two for its new 737 Max version of the business jet, known as the BBJ Max.

Boeing Business Jets revealed the orders from unidentified "elite customers" during the European Business Aviation Conference and Exhibition in Geneva, Switzerland, over the weekend.

Boeing spokesman Dmitry Krol declined to disclose additional information about the buyers or about the aircraft involved in the two remaining orders, citing VIP customer confidentiality requirements.

The new orders this year come after members of the world's super wealthy purchased 16 Boeing Business Jets in 2017.

Boeing Business Jets leader Greg Laxton said in a statement the VIP jet unit is seeing much customer interest in Boeing's new BBJ Max, thanks to the jet family's increase range and superior fuel economy.

"The performance advantage of the BBJ MAX is a big sales driver," said Laxton. Laxton said the plan is well-suited for customers who want to fly farther without stopping.

A BBJ Max jet can fly 7,000 nautical miles and features interior options to match any customer's preference.

"Customers seek more space and greater range, which is driving significant growth in the large cabin segment," Laxton said.

The new orders give the jet maker's VIP business jet unit a backlog of 19 airplanes, helping make the BBJ Max one of Boeing's fastest-selling business jets in history.

Based on the new 737 Max airplane, the BBJ Max delivers 14 percent better fuel efficiency because of its advanced engines and improved aerodynamics.

The model also features Dreamliner 787-style flight deck displays and multiple advanced new systems, Boeing says.

Boeing celebrated the first 737 BBJ Max flight in mid-April 2018, when an unpainted green BBJ Max 8 took to the skies.

The jet maker expects additional deliveries of BBJ Max airplanes in coming months.

Base 737 Max models sell for between $96 million (a Max 7) to $130 million (a larger Max 10).

There are currently 233 Boeing BBJ aircraft in operation since the jet maker started to offer them in 1996.

(Andrew McIntosh - Puget Sound Business Journal)

Bombardier Adds Two More Globals to Family

(Bombardier)

Two new additions to Bombardier’s Global family were unveiled on the eve of EBACE: the Global 5500 and 6500. The flight test aircraft is making a surprise appearance here powered by a new family of engines from Rolls-Royce, the Pearl, developed under cover and certified secretly in February.

The Global 5500 and 6500 take the current Global 5000 and 6000, respectively, and boost their speed and performance with new engines and a wing with a re-profiled trailing edge. Range with eight passengers at standard cruise of Mach 0.85 is extended by 500 nm, but by as much as 1,300 nm from hot-and-high locations such as Toluca, Mexico, to 5,700 and 6,600 nm, respectively. Mmo is Mach 0.90.

The aircraft will be produced on the same line as the Global 5000 and 6000, which will continue to be available. The four models will offer mission, capability and price points to appeal to different customer requirements. First deliveries are planned by the end of next year.

The Global 5500/6500 Rockwell Collins flight deck is the first to seamlessly merge infrared and synthetic images into a single view, Bombardier says. Advanced weather radar detection, real-time air traffic information, and improved airport moving maps are all incorporated in the latest evolution of the Bombardier Vision Flight Deck.

Many new features ate incorporated into the new aircraft, including the cabin’s Ka-band connectivity, fibre-optic-based cabin management systems and Nuage seating that Bombardier developed especially for the Global family. They will not, however, be offered for the Global 5000 and 6000.

Other new features include a kitchen (“placed in the front of the aircraft, where it belongs,” says Bombardier), incorporating designer home features with high-end exposed appliances including a steam oven. New cabinets, and new countertops with the latest styling in mind, allow for more gourmet meal options. Next to the kitchen is a dedicated crew rest area.

David Coleal, president of Bombardier Business Aviation, told a packed unveiling event at the TAG Aviation FBO here on Sunday evening that the new aircraft contain many innovations, especially in the main cabin, which incorporates a club, conference and private suite.

“The passenger seats are something very special,” said Coleal. “We're extremely proud of our patented new Nuage seat. Nuage is French for "cloud," and this seat…is the first new seat architecture in business aviation in more than 30 years. In designing this revolutionary seat, Bombardier engineers and designers threw away the rulebook. It's the most comfortable seat in the skies and the perfect place to spend a long flight.

“It has a deep recline so you can rest comfortably, and a patented tilt-link system that automatically dips the base of the seat as the back reclines. The tilting headrest provides optimal neck support in every position. If you want to move around for a different view, or to network, these movements are intuitive and effortless thanks to the first-ever fully floating base, with no visible rails.”

The large conference suite contains another innovation: the Nuage Chaise. Built on the observation that many people sit on the credenza, Bombardier decided to make it more useful.

“As a flat surface, it's great for business meetings. It gives you the opportunity to have two or three people seated side by side, facing the conference table, like a full-size dining room. It then transforms into a modular seat, where you can recline, lie back and enjoy your flight like never before. It transforms the space into a serene lounge as well. No one else can bring such home-like comfort and luxury into the skies. We're proud to innovate and lead the way in passenger comfort.”

Coleal told ShowNews that the Global 5500 and 6500 will appeal to customers who find that moving up to a Global 7500 might be too big a step, yet they want the latest features.

“You get an amazing value proposition with the 5500 and 6500. They're category-killing aircraft because for all intents and purposes nobody can match them.”

(John Morris - ATWOnline News / Aviation Week)

Honda Aircraft Company Unveils the HondaJet Elite

HondaJet Elite.
(HondaJet)

Honda Aircraft Company has revealed a new upgraded aircraft, the "HondaJet Elite," at a special hangar event ahead of the 2018 European Business Aviation Convention and Exhibition (EBACE) in Geneva, Switzerland.

The HondaJet Elite has achieved an extended range of an additional 17% (+396km) and is equipped with a newly developed noise attenuating inlet structure that lines each engine and greatly reduces high frequency noise to enhance cabin quietness. Additionally, the new aircraft's advanced avionics system incorporates additional performance management functions for optimum flight planning and automatic stability and protection functions to enhance safety of flight.

The HondaJet Elite also protects the environment by offering the best fuel efficiency in its class while also featuring best-in-class speed, altitude and range. The aircraft is type certified by the United States Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA). The HondaJet Elite will be displayed for the first time to the public at EBACE from May 28th through May 31st.

Honda Aircraft Company's President and CEO Michimasa Fujino introduced the aircraft at the event. "The HondaJet Elite represents Honda Aircraft's continued commitment to performance, efficiency and environment creating new value in business aviation," he said. "The result of innovation, design and engineering, our new aircraft features several performance and comfort enhancements that, once again, set a new standard in aviation. We are excited to share Honda Aircraft's latest technological feat with the world at EBACE.

The new aircraft was designed to provide the user the best experience by utilizing Honda Aircraft's pioneering advanced technologies coupled with the best performance and comfort enhancements. The HondaJet Elite is more fuel efficient than any other aircraft in its category and emitting less greenhouse gases than similar sized business jets.

The HondaJet Elite has inherited the aeronautical breakthroughs developed by Honda Aircraft, including the Over-The-Wing Engine Mount (OTWEM) configuration, Natural Laminar Flow (NLF) fuselage nose and wing and composite fuselage. The aircraft continues to be the most efficient, quietest, fastest and highest-flying as well as the furthest-flying in its category.

Key features of the HondaJet Elite -

- Range: 1,437 nautical miles*1 Longer range makes it the furthest-flying aircraft in its class

- Noise Attenuating Engine Inlets: Advanced inlet technology created to reduce exterior and interior noise

- Performance Management: Provides optimized performance planning for all phases of flight such as airspeed / cruise altitude, fuel flow, etc

- Takeoff/Landing Distance (TOLD) Management: Automatic computation of the required runway length, V-speeds, climb/approach gradients, etc

- Stability and Protection with Roll and AoA Functions*2: Provides enhanced safety features for manual flying that will deter aircraft operation outside the normal flight envelope

- AFCS Coupled Go-Around with Underspeed Protection*2: The aircraft’s autopilot remains connected, enhancing aircraft safety and reducing pilot workload

- New Exterior Colors with Signature Paint Scheme*2: Three premier signature paints, Ice Blue / Ruby Red / Monarch Orange

- Bongiovi Audio System*2: An industry first speaker-less in-cabin sound system that provides immersive audio experience throughout the entire cabin

New Interior Equipment Options:

Belted Lavatory

Galley with Coffee Brewer

Two-toned Executive Leather Seats

*1 NBAA IFR Range
*2 Optional

For more information, visit hondajetelite.com.

Honda Aircraft Company has established a worldwide dealer and authorized sales network to provide unsurpassed service and support for HondaJet customers. The HondaJet authorized network spans territories in North America, Latin America, Europe and Asia. An advanced light jet, the HondaJet was the most delivered aircraft in its category in 2017 and has been certified and delivered in countries around the globe.

About Honda Aircraft Company

Honda Aircraft Company is a wholly owned subsidiary of American Honda Motor Co., Inc. Founded in 2006, Honda Aircraft’s world headquarters is located in North Carolina, the birthplace of aviation. The challenging spirit upon which Mr. Soichiro Honda founded Honda Motor Co., Ltd. is alive today as Honda Aircraft fulfills one of Honda's longstanding dreams to advance human mobility skyward.

(HondaJet Press Release)

Sierra Pacific Airlines Boeing 737-528 (27424/2720) N708S

(Photo by Michael Carter)

This past Sunday (May 20, 2018), I had the chance to work a military charter flight at Los Alamitos AAF Airport (Los Alamitos, CA.) (SLI/KSLI).

Sierra Pacific "SPA708" arrived from Tuscan International Airport (TUS/KTUS) at 10:48 pst then following an on-load of 151 bags and 77 pax the aircraft was off the deck at 11:49 pst bound for Robert Grey AAF Airport (Fort Hood / Killeen, Texas) (GRK/KGRK) as "SPA708."

This is one of two -500's the carrier operates the other being N709S.  

(Photos by Michael Carter)

N708S was originally delivered to Luxair as LX-LGR on August 8, 1995. It served with the carrier until finding it's way to British Airways on July 17, 2000 as G-GFFE. It stayed with BA until being WFU and STD at Lasham (QLA/EGHL) on October 24, 2008. It remained there until being bought by AerSale Inc. on December 13, 2013 and then ferried to Roswell Industrial Air Center (ROS/KROS) on January 14, 2014 as N541AS.

Sierra Pacific Airlines leased the aircraft on August 4, 2014 and operated with the N541AS registration until changing it to N708S on November 12, 2015. It was placed in storage at TUS on January 16, 2016 but has now obviously been returned to service.

Alaska Air slows growth plans, reroutes some planes to balance spending and competitive pressures

Alaska Airlines and its regional Horizon Air subsidiary have deferred some jet deliveries to rein in growth. Horizon is also exiting some routes, such as Bellingham to Portland, and redeploying planes to more profitable routes.

Alaska Air Group is slowing the growth of its fleet and shifting some planes from busy but unprofitable Pacific Northwest routes as it grapples with financial and competitive pressures.

Alaska Airlines and regional subsidiary Horizon Air are deferring a total of 14 jet deliveries by at least two years to rein in what has been an intense rate of growth.

And Horizon is exiting some routes such as Bellingham to Portland, despite almost full airplanes on the dropped routes.

The reallocation of Horizon jets includes more flying into Seattle-Tacoma International Airport to maintain gates there against growing competition from Delta.

The fleet and route adjustments follow the huge growth surge from the merger with Virgin America.

Alaska Air Group’s fleet will grow 6.5 percent this year after an average growth rate of between 7 and 8 percent per year over the past two decades.

With the delivery deferments, John Kirby, Alaska’s vice president of capacity planning, said the airline will still grow at 4 percent in 2019 and 2020. That is still nearly double the growth rate of the U.S. economy and faster than the airline industry as a whole, he said.

“We’re still a growth story,” Kirby said. “When you buy another airline and get 30 percent larger and fuel prices go up about 25 percent, it’s natural to slow down your growth.”

As for the route changes, he called it “normal pruning of the network.”

Mark Eliasen, Alaska’s vice president of finance, said the airline must continuously adjust its growth and its routes to “sync up our fleet and network with passenger demand.”

Brooke Vatheuer, Horizon’s vice president of finance and planning, told employees on the airline’s internal company website that the delivery deferments “reflect the current economic pressures in our industry … The last thing we want is to waste money on planes that aren’t being used.” 

Slower fleet growth

Alaska Airlines, which will take delivery of 12 Boeing 737 jets this year and nine more next year, has deferred eight 737 deliveries from 2019-2020 to 2021-2022.

The airline has also converted all its firm 737 MAX 8 orders to the larger MAX 9 model, aiming to get more revenue from the greater seat capacity.

Alaska also is redeploying its fleet of Boeing 737s and the Airbus A320s it inherited in the Virgin America acquisition.

The airline is switching to Boeing jets on former Virgin higher-load routes such as Los Angeles-Boston and San Francisco-Honolulu, while moving the Airbus jets to less heavily traveled West Coast flights including Seattle-Burbank and Portland-San Diego.

Alaska Air has also pushed out some jet deliveries for its two regional carriers, Horizon and SkyWest, which provide feeder service to its Alaska Airlines routes; each is deferring delivery of three Embraer E175 jets by two or three years.

Horizon will still take 16 of the Embraer jets this year and four more next year. Horizon plans to retire a similar number of Q400 turboprops so that by the end of 2019 Horizon will have a 60-aircraft fleet — half Q400s and half E175s — compared with 59 aircraft now.

Routes dropped here, flights added there

The Horizon route changes, announced internally last week for effect in the fall, left some employees bemused.

Horizon is dropping its Bellingham-Portland, Pasco-Portland, Eugene-San Jose, Los Angeles-Sun Valley routes, as well as two routes into the Mammoth Lake ski resort in California that will end its service to that destination.

Instead it will deploy those planes to increase frequencies of flights elsewhere, including between Spokane and Portland and Seattle and Vancouver, B.C.

In an internal email, Kieran Whitney, Horizon’s managing director of in-flight services, told employees that “if you worked some of these (dropped) flights you might be wondering why we are making these changes as they were full.”

His explanation: “They may have been full but it was more that we were cutting our losses with lower fares than making a profit.”

He also said Alaska is adding flights from Sea-Tac, even though “it’s already challenging with delays” due to air-traffic congestion, because “it’s all about competition.”

The Port of Seattle allocates gates at Sea-Tac (SEA) according to the seat share among airlines over a nine-month period.

“Delta has been growing at a rate of 15 percent or more this year. So we need to put as many seats through SEA as possible to try to maintain or grow our gate footprint,” Whitney wrote. “If we do not grow, we will lose gates in SEA.”

Kirby said on peak days this summer, Alaska will have 330 flights out of Sea-Tac, to 89 nonstop destinations.

“We want to hold onto the gates and add more,” he said. “We want to keep growing here.” 

Pilot-training glitch

Horizon is recovering from a disastrous year in 2017 when an acute shortage of pilots led to wholesale flight cancellations last summer and early fall.

In response, the airline cut the number of routes it flew and sharply increased the intake of newly hired pilots and the frequency of training classes.

Since December, the airline has steadily recovered. Horizon is flying about 380 flights per day this month, compared with 220 per day last August.

Yet as the next summer peak season approaches, Horizon employees say the pilot-training program has run into trouble.

Horizon pilots say the classes, for training and certifying pilots to fly the Q400s and to upgrade first officers to captains, has had high failure rates — as high as 70 percent failing, according to one pilot who took such a class.

Alaska denies the failure rate is that high and says it is in the “high teens.”

According to a second pilot, who asked not to be named to protect his job, the Horizon pilot-training program was regarded for many years as one of the best in the industry. But budget cuts some years back shortened the classroom training and cut resources to the program.

This is not a safety issue, because no pilot makes it onto the flight deck without passing the classes and undergoing the flight checks and an FAA evaluation.

Still, the high failure rate combined with a shortage of first officers willing to give up their seniority in scheduling in order to upgrade to captain threatens to create another problem.

“Last year, there weren’t enough new (pilot) hires,” said the second Horizon pilot. “The current concern coming up to the summer schedule is not enough captains.”

Alaska Air spokeswoman Bobbie Egan said both the trainee failure rate and the captain upgrade rate are factored into the company’s scheduling models.

She said the pilot leadership “doesn’t anticipate any pilot shortage this summer” and “believes they have an adequate number of captains to fly our schedule.”

(Dominic Gates - The Seattle Times)