Embraer to Face Tougher U.S. Market If JetBlue Drops E190 Jet

Embraer SA’s E190 aircraft is flown by airlines around the world, but has struggled to find much of a home in North America. Now the largest U.S. operator of the plane may walk away, casting doubts on whether the next version of the jet can succeed in the market.

JetBlue Airways Corp. plans to decide by the end of this year whether to join American Airlines Group Inc. and Air Canada in dropping the plane, ending an original plan for one hundred E190s in the New York-based carrier’s fleet. It would leave Aeromexico Connect as the only airline in North America flying Embraer’s second best-selling commercial jet, which can carry 96 to 114 passengers.

The E190’s fall from favor in the U.S., the world’s largest air travel market, illustrates the struggle for aircraft designed for point-to-point, high-frequency routes, operating between smaller planes that ferry passengers to airport hubs and big jets that are flown greater distances by large carriers. Operators have to charge higher fares for the convenience of multiple daily flights between the same cities to cover the increased costs of flying a plane with fewer seats.

“There are arguments for the 100-seater, but it’s far from guaranteed,” said Richard Aboulafia, an aerospace analyst at Teal Group. “It’s always depended upon the confidence that airlines could make it work from a pricing standpoint. This JetBlue decision is kind of a referendum or judgment on that.”

JetBlue’s fleet review comes as Embraer prepares for the first commercial flight next year of the E190 E2, a new version with an engine the Brazilian planemaker says will burn less fuel and have lower maintenance costs than the current jet. The Sao Jose dos Campos-based company also is marketing the E2 version of its larger E195 small jet.

“Right now its important to have a stake in the North American market,” said Nick Heymann, a William Blair analyst. The E190 “is supposed to be a natural walkup to the E2. North America is a pretty important market for both regional and small narrow-body airplanes.”

Boeing, Airbus

At least 38 airlines outside of North America fly 40 or more E190s. The jet has competed against 120- to 150-seat planes from Boeing Co. and Airbus SE that were already in use when it was introduced, John Slattery, head of the Brazilian planemaker’s commercial aviation unit, said in an interview. JetBlue’s version carries 100 passengers.

The shaky position of the E190 doesn’t mean that Embraer is lacking fans in the U.S. The planemaker’s 76-seat E175 aircraft is flown by most U.S. regional carriers. But union contracts at American, United and Delta airlines require that planes with more than 76 seats be flown as part of their main jet operations, where higher-paid pilots raise the operating costs of the E190. Still, Slattery doesn’t think that history will hamper Embraer’s ability to sell the new version in the U.S.

Transition Moment

“It feels to me we are at a point of inflection, a moment of transition, where the U.S. major network carriers and also the low-cost carriers and ultra low-cost carriers are looking at re-fleeting at the lower end of their narrow-body fleet,” Slattery said. “That’s where the 190 and 195 E2 will play. We predict plenty of opportunity for Embraer in North America.”

Every option is being considered as part of JetBlue’s review, Chief Financial Officer Steve Priest has said, including shedding the sixty E190s it now flies, keeping them or replacing them with another small plane. In addition to Embraer, candidates include Bombardier Inc.’s C Series or Airbus’s A319. A smaller jet from Mitsubishi Corp. also may be ready by mid-2018.

“I am cautiously optimistic we will continue our amazing partnership with JetBlue for many decades to come,” Slattery said. The planemaker will present “the full family” of its aircraft to JetBlue, “especially the E195 E2, which we believe could be a perfect fit for the broader JetBlue fleet for the coming years.”

Hunter Keay, a Wolfe Research analyst, has said he expects JetBlue “will announce its exit as an E190 operator by the end of the year.” American and Air Canada plan to shed their E190s -- 20 and 25, respectively -- by the end of 2019.

Costs for each seat flown a mile on the aircraft are about 20 percent higher than JetBlue’s Airbus planes when adjusted for longer routes flown by the larger jets, Priest has said. The E190 also has “significantly higher” revenue on that basis, he said, declining to be more specific. Such differences generally are true for smaller jets because there are fewer seats to spread both costs and revenue across.

JetBlue’s E190s have been used for high-frequency flights to the Caribbean and out of Boston that are favored by business travelers willing to pay more.

(Mary Schlangenstein - Bloomberg News)

jetBlue Airways Airbus A320-232 (c/n 1560) N531JL "Blue Finest"

This lovely new livery is dedicated to the men & woman of the New York City Police Department (NYPD). It is captured at Long Beach Airport (LGB/KLGB) on Sunday July 2, 2017.

(Photos by Michael Carter)

United Airlines Extends Boeing 777-300ER to Extra Routes

United Airlines, has introduced Boeing 777-300ER service (the airline’s latest aircraft type featuring the all-new United Polaris business class seats) to additional routes.

The westbound service between San Francisco (SFO) and Beijing (PEK) is scheduled to begin from Sep 6, 2017, while the eastbound journey is expected to take off on Sep 8, 2017. Services between San Francisco (SFO) – Frankfurt (FRA) and New York/Newark (EWR) – Tokyo Narita (NRT) will start from Oct 5, 2017, eastbound (westbound services will start a day later) and Oct 28, 2017 westbound (Oct 29, 2017 eastbound), respectively.

The new aircraft is already in service along the San Francisco – Hong Kong (HKG) and New York/Newark – Tel Aviv (TLV) routes and will commence operations from San Francisco to Taipei (TPE) on Aug 1.

The Boeing 777-300ER aircraft offers several advanced features and amenities like the all-new United Polaris business class seat, a lavish cabin experience and an enhanced United Economy journey. Every United Polaris seat has direct aisle access, a large 180-degree flat-bed with infinite seat recline options and other extravagant features. Seats in United Economy offer United Private Screening options, enabling customers to enjoy movies and television programs on their electronic gadgets.

(Zacks Equity Research - Zacks)

AviaAM Leasing delivers Boeing 737 business jet for KlasJet

AviaAM Leasing, a Warsaw Stock Exchange listed global aviation holding company, engaged in the business of commercial aircraft acquisition, leasing and sales, has announced having delivered Boeing 737 business jet on an operating agreement to European business aviation company KlasJet.

Having acquired the Boeing 737-500 in November 2016, AviaAM Leasing became the third owner of the aircraft, which was initially owned by US carrier Continental Airlines since the new aircraft was produced in 1998. The airline used Boeing for regional and charter flights with economic class seat configuration, seating 126 passengers.

Prior to aircraft delivery, the economic class Boeing 737 has undergone major modifications to fulfill the needs of large groups of business travelers, as well as professional sports teams. Modification project was executed by global MRO provider FL Technics in 5 months, involving over 50 aviation engineering, maintenance and design specialists from Lithuania, the United Kingdom and Italy.

“We have been aiming to supplement our diverse fleet with a large business jet suitable for professional sports teams, business travelers and government officials for a while now. Having acquired the Boeing 737 in a condition favorable for such modification, we entrusted FL Technics with the challenging project execution and the end result is more than we could’ve expected,” comments Tadas Goberis, Chairman of the Board and CEO of AviaAM Leasing.

“This project was extremely complex due to an extensive number of technical changes the aircraft had to undergo. The modification involved fundamental interior design changes including seat refurbishment, seating configuration changes – from 126 economy to 56 business class leather covered seats, and introduction of new LOPA’s. Additionally, aircraft received luxurious new livery, exquisite wooden design elements and brand new carpet cover together with white cold lightning were installed,” shared Romualdas Legetavicius, Technical Director of AviaAM Leasing.

After the modification, newly furnished Boeing 737 business jet received EASA supplement type certificate and full set of aircraft airworthiness documentation from Lithuanian CAA. The aircraft already has gained an interest among the sports team and will be used by Euroleague participant Zalgiris Kaunas. At the beginning of autumn, the sports team will start flying the leased aircraft to road matches.

(AeroTime News / AviaAM)

British Airways brings Qatar to substitute its striking staff

British Airways is using the aircraft and crew of Qatar Airways on flights affected by the cabin crew strike, which started on July 1 and will last for 16 days, according to Bloomberg.

Nine Qatar Airways A320-series planes are brought on British Airways short-haul routes, allowing the UK’s carrier to operate almost all flights as normal during the mixed fleet cabin crew strike, which began on July 1, 2017.

The strike, which is due to last for 16 days until July 16, is part of an ongoing pay dispute between British Airways and its workers' union. Prior to its beginning, British Airways confirmed to AeroTime the intention to keep as many flights going as possible:

“We will operate a full schedule at Gatwick and London City airports as well as the vast majority of our Heathrow schedule. We will merge a very small number of Heathrow services, and all affected customers are being contacted in advance and will be rebooked to alternative flights,” the emailed statement said.

Qatar Airways, which are offering British Airways substitute aircraft, is a part-owner of BA, having a 20 percent stake in BA’s parent company IAG. Due to ongoing political tensions in the Middle East, Qatar Airways recently had to ground some of its aircraft.

During the previous conflicts, BA had borrowed aircraft from Titan Airways, Thomson Airways and Vueling.

(AeroTime Aviation News)

Argentina greenlights first local LCC

The national government of Argentina has officially authorized the low-cost airline FB Líneas Aéreas Sociedad Anónima, commercially known as FlyBondi, to operate 85 national and international air traffic routes for the next 15 years.

The decision communicated through Resolution 408-E/2017 of the Ministry of Transportation was published on June 29 in the Boletín Oficial, with the signature of Minister Guillermo Dietrich.

According to the document, FlyBondi is now authorized "to operate domestic and international regular services of air transportation of passengers, cargo and mail". Concessions include international destinations to Brazil, Ecuador, Bolivia, Colombia, Peru, Chile and Uruguay, as well domestic routes between Argentinian cities.

As indicated in the Resolution, it is considered beneficial that another local operator enters both domestic and international markets as this will increase competition and lead to the improvement of the activities in the air transport sector.

In addition, the entry of a new Argentinian operator will increase the presence of the country on routes primarily exploited by foreign carriers

The company will base its operations from the airport of El Palomar, although this is "subject to the qualifications and limitations" of the airport.

FlyBondi is the fifth LCC greenlighted by the Argentinian government to transport cargo and passenger. The other four are American Jet, Andes, Alas del Sur and Avianca.

In addition, in April 2017, Norwegian announced establishing a new venture in Argentina with a fleet of 10 Boeing 737s by the end of 2017.

(AeroTime Aviation News)

UK airfreight gets Customs declaration fallback service in case of a system collapse

The UK’s airfreight industry has implemented a new Customs declaration fallback system to prevent an airfreight meltdown like that experienced in the late 1980s when the Travicom system was put in place.

The new CCS-UK capability is designed to prevent the catastrophic impact of a major system failure, which would cause cargo backlogs and mayhem at UK airports, and cost the economy tens of millions of pounds.

CCS-UK Fallback allows authorized traders to continue processing Customs export declarations in the event of any significant system outage, and receive automatic fallback clearance to ship goods without delay.

Import entries will also receive fallback clearance, avoiding the backlogging that would result from manual Customs clearance.

Up until now, any outage of the Customs system, named Chief, would have resulted in forwarders and agents having to submit information manually and would have overwhelmed the industry and Customs.

Steve Parker, DHL’s head of Customs for Europe and chairman of the CCS-UK user group, said: “We have recently seen the horrendous impact of major IT system failures in aviation, and this cannot be allowed to happen to the UK air cargo industry - which provides essential support to UK trade and industry, helps maintain our competitiveness on the world stage and supplies urgent commodities that are sometimes a matter of life and death.

“With growing airfreight volumes through our major airports, the advent of Heathrow’s third runway, potential additional pressures on Customs systems following Brexit and an ageing HMRC computer system (Chief) scheduled for replacement in the next few years, there has never been a greater need for the added resilience that this new feature will deliver.”

The fallback system should also help ease any industry concerns about the replacement of the Chief system with a new Customs Declaration Services system, although a timeline for implementation is not clear.

Parker urged specialist IT systems providers for the air cargo community to update their products to take advantage of the new feature and urged the industry as a whole should start training its staff so that everyone is ready to use the new function should we need to implement it.

At an event to launch the new system, forwarders and agents were reminded of the disaster to UK airfreight when Travicom’s UKAS system collapsed shortly after implementation, with staff having to process all information manually.

One forwarder working at the time said his company had anticipated the collapse and had called in all staff at 5am to begin processing information.

Eventually, Customs had to “open the floodgates” and allow shipments in without being processed.

Today this wouldn’t be allowed to happen because of the stricter security requirements meaning the impact would be even greater, with cargo sheds quickly filling, causing delays to aircraft and a collapse in imports and exports.

There have been a few outages since then, but these were describes as manageable and nothing of the scale caused by the Travicom switchover.

The idea for the fallback system originally came ahead of the London 2012 Olympic Games when the industry began to wonder what would happen if there was an outage during the build up to the event.

(AirCargoNews)

Ethiopian inaugurates second Addis Ababa cargo terminal

Hailemariam Desalegn opens the new cargo terminal.
(Ethiopian Airlines)

Africa’s largest cargo operator, Ethiopian Airlines, has inaugurated its Cargo Terminal-II facility at home hub Addis Ababa

The ceremony was attended by Ethiopia’s prime minister, Hailemariam Desalegn, transport minister Ahmed Shide and Ethiopian Airlines Group chief executive Tewolde GebreMariam, along with participants from the ICAO Cargo Forum being held in Addis Ababa.

Desalegn said: “Today, the national flag carrier has become the largest aviation group and the fastest growing airline in Africa, unrivalled in efficiency with shining operational excellence. Above all, Ethiopian Airlines has played an important and irreplaceable role in the development of the economy, export and import activities and foreign exchange earnings.”

Tewolde acknowledged the partners who contributed to the completion of the project and said: “The new Cargo Terminal-II combined with our existing Terminal-I will give us a total tonnage capacity of around 1m per annum which is the largest in the continent of Africa.

“This milestone will make Ethiopian Cargo & Logistics Services one of the world’s largest cargo terminals; comparable with cargo terminals in Amsterdam Schiphol, Singapore Changi or Hong Kong.”

Covering a total area of 150,000 sq m the new facility includes a dry cargo terminal warehouse, a perishable cargo terminal with cool chain storage, fully automated with elevating transport vehicle (ETV) technology and an apron area for five additional large freighter aircraft.

The new terminal is also fitted with different climate chambers for storage and handling of temperature sensitive products such as fresh agricultural products, pharmaceuticals and life Science Products.

(AirCargoNews)

Cargolux adds Atlanta to US services served from Zhengzhou in China

Cargolux Airlines has added Atlanta to destinations served from its Chinese hub in Zhengzhou (CGO).

The North American city becomes the second US destination, after Chicago, to receive direct freighter connections from Zhengzhou.

The European cargo carrier today (June 30) introduced its first commercial service from CGO to Atlanta, in combination with Chicago, on its flight CV9765 that originates and ends in Luxembourg.

A second new service from Zhengzhou to Atlanta will start on July 4.

In addition, Cargolux connects Zhengzhou and Chicago with direct flights on Tuesdays, Thursdays and Fridays.

An airline spokesperson said: "The two additional China-US services cement Cargolux’s strong position in China and on transpacific trade lanes.

"Demand on Cargolux’s Zhengzhou flights is exceptionally strong, fuelled in part by growth in e-commerce. Demand from Asia to the Americas is also boosted by growing markets in Brazil and Mexico that are mainly served via North America.

"With the new flights, Cargolux is able to offer additional capacity to and from China and give shippers in the US more reliable and fast connections to Chinese producers and consumers."

In early May this year, Emirates SkyCargo signed a memorandum of understanding with Cargolux for a strategic operational partnership.

Emirates will use Cargolux’s Boeing 747F capacity, complementing its own fleet of B777Fs, while giving it continued access to planes with noseloading capacity or the ability to carry heavylift cargo.

(AirCargoNews)

George Knobloch named Horizon Air's new vice president of maintenance and engineering

(Alaska Air Group)

Horizon Air has named airline industry veteran George Knobloch as the regional carrier's new vice president of maintenance and engineering.

Knobloch will oversee a team of more than 400 employees who work in maintenance and engineering operations at the carrier's six maintenance facilities.

Knobloch will be based in Portland, the location of Horizon Air's maintenance and engineering hub, the Alaska Air Group-owned Horizon said in a news release.

"George is an outstanding leader with an excellent vision for our maintenance program," said David Campbell, President and CEO of Horizon Air. "His attention to the safety of our guests and teammates will continue to be an asset in this role."

Knobloch joined Alaska Air in Seattle in 2002 as the manager of line operations.

Until his promotion to vice president, he was managing director of maintenance and engineering at Horizon Air.

In that job, Knobloch held the Federal Aviation Administration (FAA) required position of director of maintenance on the airline's operating certificate.

During his career, Horizon said, Knobloch has held various positions of increasing responsibility, including director of maintenance operations and outstations, with responsibility for Alaska Airlines' staffed stations; maintenance control; technical training; and contract maintenance providers in the United States, Canada and Mexico.

Prior to joining Alaska, Knobloch worked for U.S. Airways as a technical instructor before serving as line maintenance manager in San Diego, Los Angeles and Boston.

Knobloch is also a retired member the U.S. Navy Reserve, where he served as a command master chief and other leadership roles during a 30-year career with aviation commands in the U.S. and overseas.

During his time with the Navy, he maintained several kinds of military aircraft, including H3 helicopters, A4 fighters, F18 fighters, C130 and C9 cargo aircraft.

Horizon flies to 39 cities across the United States, Canada and Mexico.

(Andrew McIntosh - Puget Sound Business Journal)

Ground transportation improvements planned for LAX challenged in court

Traffic jams the central terminal area at LAX during the holidays last year. Airport officials hope to reduce the congestion with a $5-billion ground transportation improvement plan that is now being challenged in court.

 (Irfan Khan / Los Angeles Times)

A parking lot operator has sued the City of Los Angeles in an attempt to overturn approval of $5 billion in ground transportation improvements that are part of the ongoing modernization of Los Angeles International Airport.

TPS Parking Century and TPS Parking Management, which run the Parking Spot near LAX, allege that the environmental impact report for the so-called Landside Access Modernization Program fails to adequately address the potential effects of the project and how to mitigate them.

Filed late Friday in Los Angeles County Superior Court, the lawsuit seeks an order to set aside the airport commission’s approval of the project, require Los Angeles World Airports to revise the environmental analysis and recirculate it for public review if more severe impacts are discovered.

LAX officials plan to reduce traffic congestion in and around the airport with an automated people mover in the central terminal area and two transportation centers east of the airport to handle shuttle buses, taxis and travelers using a new light-rail connection.

The access program also calls for construction of new roads and the improvement of nearby streets to serve the transportation centers and a consolidated car rental facility to be built in Manchester Square. Sepulveda, Aviation and West Century boulevards, 98th Street and West Arbor Vitae Street are some of the major thoroughfares to be upgraded.

TPS alleges that the city and Los Angeles World Airports have violated the California Environmental Quality Act, which requires thorough studies of a project’s environmental impacts and the possible ways to reduce those effects.

The lawsuit contends the access program’s environmental review failed to adequately describe the project and does not fully analyze potential traffic congestion, the impacts on street intersections, cumulative impacts and the growth-inducing effects of the project.

Though LAX officials do not comment on pending litigation, Trevor Daley, the chief of external affairs for Los Angeles World Airports, said that the project’s environmental impact report fully complies with state law and that extensive public outreach was done.

“This is a clear attempt for the Parking Spot to preserve their parking revenue by slowing down this important project that moves passengers efficiently,” Daley said.

LAX — the nation’s second-busiest airport — is in the middle of a $14-billion renovation that includes the ground transportation plan, remodels of domestic terminals, an extensive upgrade of the Tom Bradley International Terminal, a new midfield concourse for airline service, and runway and taxiway improvements.

(Dan Weikel - Los Angeles Times)

Here's the simple reason why planes have winglets

(Boeing/Business Insider)

Ever look out the window of a plane or watch as it pulls up to the gate?

Have you ever wondered why some planes have pointy bits at the ends of the wings?

What you see are "winglets," and they have essentially become standard equipment on all new airliners.

Why are they there?

"Winglets help reduce the drag associated with the creation of lift," Robert Gregg, Boeing's chief aerodynamicist, told Business Insider.

That's the technical answer.

Gregg said the practical reason behind winglets is easier to comprehend.

Winglets allow the wings to be more efficient at creating lift, which means planes require less power from the engines. That results in greater fuel economy, lower CO2 emissions, and lower costs for airlines.

Boeing claims that winglets installed on its 757 and 767 airliners can improve fuel burn by 5% and cut CO2 emissions by up to 5%. An airline that installs winglets on its fleet of 58 Boeing 767 jets is expected to save 500,000 gallons of fuel annually.

Winglets help mitigate the effects of "induced drag." When an aircraft is in flight, the air pressure on top of the wing is lower than the air pressure under the wing. Near the wing tips, the high-pressure air under the wing rushes to the lower-pressure areas on top, which results in the creation of vortices. The vortices flow in a three-dimensional manner over the wings. They not only pull air up and over the wing, but they also pull air back. That third component is induced drag.

With the advent of winglets, the aircraft is able to weaken the strength of wingtip vortices and, more important, cut down on induced drag along the whole wing.

(Boeing)

Induced drag can be overcome by making the wing longer.

In fact, the general rule is, the longer the wingspan, the lower the induced drag, Gregg said.

But in many instances, airplane makers simply don't have the option of making the wings longer. For example, narrow-body airliners such as the Boeing 737 and 757 often operate from gates at airports designed for short- to medium-range domestic flights. Since these flights usually require smaller aircraft, they have less room apportioned to them. As a result, wingspan is effectively limited by the size of the parking space the plane is allotted at the gate.

So instead of the adding wingspan by making the wings longer, Boeing adds wingspan by going vertical with winglets.

In some instances winglets aren't necessary, because there are no constraints on space. For example, Boeing's hot-selling 777 wide-body airliner does not have winglets. According to Gregg, that's because the 777 operates from international terminals designed for larger jumbo jets. As a result, Boeing found the performance it was seeking without the need for vertical extensions.

Since they were first developed by Richard Whitcomb at NASA's Langley Research Center in 1976, airplane makers have steadily worked to improve the design and effectiveness of winglets.

According to Gregg, the first-generation winglets fitted to aircraft such as the Boeing 747-400 and the McDonnell Douglas MD11 offered up to 2.5% to 3% improvement in fuel burn compared with aircraft not equipped with the option.

Second-generation winglets, such as those found on Boeing's workhorse 737, 757, and 767 aircraft are much larger than the first-gen models, with greater curvature. Second-generation winglets offer a 4% to 6% improvement in fuel burn.

Boeing's new 737 Max airliners are equipped with third-generation winglets that offer a 1% to 2% improvement over the second-gen models.

(Benjamin Zhang and Mike Nudelman - Business Insider)

Gulfstream G650 (c/n 6281) N281GA tbr N811TM

Arrives at Long Beach Airport (LGB/KLGB) on June 30 as "GLF22" from the factory at Savannah-Hilton Head International Airport (SAV/KSAV) 10:32 pst. It then proceeded to the south Gulfstream service center near the airport tower (the old C-17A mod center) where it is currently parked (as of July 3, 2017).

(Photos by Michael Carter)

Congress Eyes Future of Supersonic Travel

The U.S. Congress is showing an appetite for revisiting the decades-long ban on supersonic travel over land. Both the House and Senate versions of FAA re authorization bills include measures directing the FAA to study the regulations surrounding supersonic travel to see if they could be updated.

“It is important to create bias for action…so we can lead to certification and safe operation over the domestic U.S.,” said Rep. Mark Sanford (R-South Carolina), who sponsored the measure as an amendment to the House FAA re authorization bill.

Civil supersonic travel over land in the U.S. has been prohibited since March 1973. The Concorde supersonic airliner had to slow to below Mach 1 before making landfall on its transatlantic flights. But years of research surrounding sonic booms and the advancement of technologies are giving rise to questions about what could be done to facilitate supersonic travel.

“It’s vital that we change with the times,” Sanford said. “Over the last 45 years, since there’s been a moratorium on supersonic flight over the domestic U.S., the technology, in fact, has changed. It’s changed dramatically.”

Sanford’s measure calls on the FAA to “consider the needs of the aerospace industry and other stakeholders when creating policies, regulations and standards that enable the safe commercial deployment of civil supersonic aircraft technology and the safe and efficient operation of civil supersonic aircraft.” The measure directs the FAA to obtain stakeholder input on an appropriate regulatory framework and timeline to permit civil supersonic aircraft operations; issues related to standards and noise certification; operational differences between subsonic and supersonic aircraft; benefits of supersonic operations; and challenges with balancing economically reasonable policies with protecting the public from noise exposure. It further directs the FAA to report back to Congress within a year on its activities.

The Senate FAA re authorization bill, meanwhile, directs the FAA to, within 180 days, review laws and policies regarding supersonic aircraft operations over land and submit a report to Congress detailing advancements in aircraft/engine design that would mitigate noise and other concerns that led to the restrictions on such operations. It also asks for recommendations on laws that would need to be changed to permit supersonic operation and on any planned actions to update or modify regulations and policies. Further, the Senate measure seeks a timeline for such changes.

Both the House and Senate bills must make their way through the respective chambers before the measures can be reconciled. But with provisions in both the House and Senate bills, the likelihood increases that—should Congress reach agreement on a comprehensive FAA bill—there will be some sort of directive to the FAA to consider action on supersonic flight over land.

(Kerry Lynch - AINOnline News)

Australian Buy of Modified G550s Confirmed

Australia’s new AISREW platform based on the Gulfstream G550, will probably look like this.

(Photo: Gulfstream)

The U.S. has approved Australia’s request to acquire Gulfstream G550 executive jets modified into airborne intelligence, surveillance, reconnaissance and electronic warfare (AISREW) platforms. Up to five G550s worth $1.3 billion after conversion could be supplied, according to a foreign military sales (FMS) notification issued by the Defense Security and Cooperation Agency (DSCA) on June 26. L3 Communication Systems of Greenville, Texas, will be the system integrator and prime contractor.

L3’s Communications Mission Integration Division at Greenville, Texas, was awarded a $93.6 million contract by the U.S. Air Force in December 2015 for G550 procurement and maintenance for Australia. The country’s Department of Defence said then that the FMS contract covered the procurement and maintenance cost of two G550s.

The Australian 2016 Defence White Paper stated that the AISREW G550s “will be acquired in two tranches and incrementally upgraded to maintain commonality with the U.S.-developed systems for long-term supportability and to maintain interoperability.”

The White Paper also noted that the capability will “substantially enhance electronic warfare support to naval, air and land forces for operations in electromagnetic environments manipulated by hostile forces” while retaining “the operating cost, range and endurance benefits of a commercial airframe.”

AIN understands that the five AISREW G550s, which will be acquired under Project AIR 555, will be assigned to the Royal Australian Air Force (RAAF) Surveillance and Response Group and based at Edinburgh in South Australia.

The AISREW acquisition is one of several new planned investments to strengthen Australia’s ISR capabilities. The country is taking delivery of Boeing P-8A Poseidon aircraft and has ordered Northrop Grumman MQ-4C Triton HALE UAVs.

(Mike Yeo - AINOnline News) 

Etihad exempt from US laptop ban

The United States of America has lifted the ban on laptops and other electronic devices in the cabin on US-bound flights from Abu Dhabi Airport. The change is attributed to the successful efforts of Etihad – the only airline that flies directly from Abu Dhabi to US – to implement extra security measures. It is the first exemption made since the ban was implemented in March 2017.

According to the BBC, American officials exempted Etihad Airways passengers from the requirement to put laptops and other “bigger-than-a-smartphone” portable electronics in the check-in baggage, after the airline had implemented extra security measures.

The additional measures include increased passenger inspection, meaning that passengers will now go through US customs and border screening before taking off, according to Reuters.

The US had announced a ban on the transport of laptops and other electronics in March 2017, fearing that IS terrorists could attempt to hide explosives in batteries and battery compartments. The ban applies to electronics that exceed the size of a regular cell phone, in hand luggage on direct flights to the United States from 10 - mostly Muslim - countries.

The ban concerns direct flights to the United States of the following airlines: Royal Jordanian Airlines; Egypt Air; Turkish Airlines; Saudi Arabian Airlines; Kuwait Airways; Royal Air Maroc; Qatar Airways and Emirates departing from the Middle East.

Following the US example, the ban of electronics in the cabin on inbound direct flights from certain countries is also implemented in UK and Australia, with New Zealand still being on the fence about such measures. However, the US has recently announced that the ban might be replaced with other security measures.

However, even before stricter the airport security, Abu Dhabi had another “security measure” implemented, when it cut diplomatic ties with Qatar and announced a land, sea and airspace blockade over the terrorism support claims on June 5, 2017.

(AeroTime Aviation News)

The fairy tale continues - general cargo on the rise

China Airlines Cargo Boeing 747-409F (30764/1269) B-18707 touches down on Rwy 15 at Ted Stevens Anchorage International Airport (ANC/PANC) on May 3, 2017.
(Photo by Michael Carter)

May 2017, showed a formidable year-over-year (YoY) increase in chargeable weight of 12.8% (13.8% in DTK's), coupled with a YoY yield rise of 5% in USD (7% in EUR). For the first five months of the year, worldwide chargeable weight increased with 10% YoY and revenues with 11% in USD (with 15% in EUR). Macroeconomic indicators seem to hint that the present situation looks fairly robust.

Growth in e-commerce may be one factor explaining the surge in air cargo we witness since the second half of 2016: after all, speed plays an important role in this sector of the economy. Yet, we do not see this trend reflected in large increases in express air cargo. We note the largest growth in regular shipments weighing more than 1,000 kilograms, a clear sign (I) that most e-commerce finds the regular speed of air cargo good enough, and (II) that e-commerce is definitely not a matter of individual small parcels flying across the globe!

Increasing consumer demand in general (and for electronics in particular) may be another contributing factor, fueled by an increase in purchasing power, most clearly in a number of Asian markets. Our growth figures for a number of these markets certainly point in that direction. But Europe and North America (the latter mainly in incoming traffic) show their mettle as well. Although the economic recovery in Eastern Europe and Latin America is slower than elsewhere, air cargo from these regions is now clearly picking up. The laggards of early 2017 are therefore Africa and the Middle East.

The Asia Pacific region has now recorded double-digit YoY volume increases for four months in a row, resulting in a year-to-date growth of 14%. China and Hong Kong, accounting for about half of the region's air cargo, grew even faster, but their growth percentages were topped by Vietnam (+31%) and the Philippines (+26%). Volumes from Australia and New Zealand, on the other hand, contracted. Whilst China and Hong Kong send only a quarter of their air cargo to destinations in the region, for Japan and South East Asia it is almost half of their total exports by air that stay within Asia Pacific.

The transport of specific product groups within the Asia Pacific region deviates from the general trend. Live animals, perishable goods and pharmaceuticals all showed a negative growth in the year so far, pharmaceuticals losing 31.7% YoY. Only the small segment of express cargo (+22.6%) outstripped the overall intraregional growth of 12.7%. In other words: general cargo is on the rise. And that is not just the case in Asia Pacific, it is the worldwide trend in the year so far. With the exception of pharmaceuticals, specific cargo categories experience slower growth than general cargo.

(WorldACD / AeroTime Aviation News)

United jet catches on fire at Denver airport

(Photo: Twitter/raiyansyed)

An engine on a United Airlines passenger jet caught on fire in Denver on Sunday, forcing passengers to evacuate.

Photos posted to social media showed the plane's left engine burning as a pool of dripping liquid caught fire on the tarmac below.

Emergency vehicles rushed to the scene at Denver International Airport and a fire crew quickly put out the blaze. No one was hurt in the incident, according to a tweet from the airport's account.

"Arriving SkyWest flight 5869 was reported on fire, all passengers evacuated safely with no injuries," the tweet said. "Denver Fire is on scene assessing."

The plane had traveled from nearby Aspen, Colorado, less than 200 miles away. It is unclear when the engine caught on fire, but one passenger said it wasn't until after the plane had landed.

"All runways are now open as investigation into SkyWest fire continues. Other airport operations remain unaffected," the airport said in another tweet.

(Mark Abadi - Business Insider / Yahoo News)

HK's BOC Aviation buys 4 Boeing aircraft for $1.08 bln (BA)

BOC Aviation Ltd said on Friday it would buy four new aircraft from Boeing Co for an aggregate list price of $1.08 billion, as the aircraft lessor builds its balance sheet by investing in modern, efficient and in-demand aircraft.

The Hong Kong-listed firm said it would buy four new Boeing 787-9 aircraft for delivery during 2019.

BOC Aviation, which operates a fleet of 494 aircraft, said the actual purchase price was lower than the list price, and the deal would be funded through cash on hand, loans and borrowings.

Boeing and BOC Aviation had earlier this month announced a memorandum of understanding for buying 10 737 MAX 10 airplanes for $1.25 billion at list prices.

(Reporting by Donny Kwok - Reuters / Business Insider)

Norwegian is world's second airline to get Boeing's new 737 Max

Norwegian Air Boeing 737-8 MAX (42830/6360) EI-FYA captured at Boeing Field (BFI/KBFI) during her pre-delivery flight test phase. Once delivered, the tail art will be applied in Oslo and be dedicated to British aviation pioneer Sir Freddie Laker.
(Photo by Joe G. Walker)

Norwegian Air took delivery of two new Boeing 737 Max Dreamliners (EI-FYA (42830/6360) and EI-FYB (42826/6372) on Thursday at a handover ceremony in Seattle. The first of the jets took off for Oslo at about 1:45 p.m. local time.

The deliveries were the first of the type to Norwegian Air, which has a total of 110 737 Maxes on order. The carrier expects to take four more of the jets – all the Max-8 variant – by the end of 2017.

Norwegian becomes just the second airline in the world get Boeing’s new 737 Max model. And, sometime next month, the airline will become the first to put the jet into regular service in the United States.

"It’s a major milestone,” Norwegian founder and CEO Bjørn Kjos said about taking the new 737 Max at delivery ceremony in Seattle on Thursday.

Norwegian has big plans for the aircraft

“The Max-8 will pave the road for a totally new concept,” Kjos added. “It gives us the ability to open up routes between the Europe and the U.S. on a totally new fare basis.”

Norwegian plans to use its new 737 Max jets to fly to Europe from small U.S. airports where costs are lower. Coupled with the fuel efficiency and economics of the modern Max-8, Kjos is betting that the Max will allow Norwegian to make money on niche routes like Providence-Cork, Ireland, and Newburgh, N.Y.-Edinburgh, Scotland.

Indeed, Norwegian has already launched the first of 12 such routes it will fly from Providence, Newburgh and Hartford, Conn. By the end of the summer, Norwegian will be flying non-stop from those U.S. cities to a half-dozen destinations in Ireland, Norway and the United Kingdom.

The Max is Boeing's updated version of its popular 737 family of jetliners, used mostly for medium and short-haul flights by airlines across the globe. This latest "Max" iteration marks the third major overhaul to the 737 since the program launched in 1967 and features new engines and other aerodynamic enhancements.

While current-generation 737s have the range to make short trans-Atlantic flights between eastern North America and western Europe, they often cannot take a full load of passengers or cargo on such routes. Norwegian had to launch the first of its 737 routes from the U.S. Northeast on current-generation 737s because of delivery delays to the Max, though it expects to have its Maxes flying on them by the end of the summer.

With the Max, airlines expect to be able to fly the jet on short trans-Atlantic routes without compromising on passenger or cargo capacity.

Norwegian is banking on that as it tries to make money flying “thin” U.S.-Europe routes that connect secondary markets. To facilitate its 737 Max growth, Norwegian is opening bases in both Providence and Newburgh for its U.S.-based 737 pilots.

In bigger markets, Norwegian is using a more traditional widebody jet – Boeing’s 787 – for long-haul flights on routes such as New York-London and Los Angeles-Barcelona.

“We have 14 of them flying (now) and by the end of the year 21 Dreamliners will be in operation,” Kjos says. “When they are finished in the next two years we will have 42 Dreamliners in operation.

As for the 737 Maxes that Norwegian is bullish on, the carrier became just the second in the world to receive the jet. Malaysian-based Malindo Air, a subsidiary of Indonesia’s Lion Air, became the first to get the Max in May. It now has taken four models of the jet.

In the U.S., Southwest is likely to become the next to take the jet. It has 200 on order and is expected to begin putting them in service this fall. American also is set to get them later this year.

(Ben Mutzabaugh - Today In The Sky / USA Today)