Riding the favorable winds of increasing passenger traffic, slightly better fuel prices and revenues from ancillary services such as baggage fees, the world’s airlines should post record absolute profits in 2014, according to the International Air Transport Association (IATA). But some parts of the air transport system, particularly cargo and business-class passengers, remain at pre-recession levels.
The U.S. air traffic management (ATM) system outperforms Europe’s more fragmented system on both cost and operations, according to two reports issued by the Eurocontrol Performance Review Commission (PRC).
Iraq has signed a contract with Korea Aerospace Industries (KAI) to buy 24 T-50 Golden Eagle advanced jet trainers. According to KAI, the deal at the outset is worth $1.1 billion, including initial pilot training, but will almost double in value with the addition of support over 20 years. Iraq also evaluated the Aero Vodochody L-159, BAE Hawk Mk 128 and Yakovlev Yak-130, according to KAI.
Boeing and Saab signed a joint development agreement for the U.S. Air Force’s T-X jet trainer requirement. They join three other industry teams offering aircraft for the T-X competition, which is expected to begin with a request for proposals (RFP) in 2016.
Bombardier closed the sale of Flexjet to Flexjet LLC, a newly created company funded by Directional Aviation Capital, last week, though aircraft are still being transferred to the new owner. When the deal was announced on September 5, the acquisition price was $185 million; following “purchase price adjustments,” it is now estimated at $195 million, including the “assumption of an estimated $70 million of customer advances” by Directional’s Flexjet LLC.
Yankee Pacific–a provider of custom structures, components and systems to the executive aircraft market since 2006–will be renamed Advent Aerospace, effective January 1. Advent means “the arrival of something new,” said managing director Ken Goldsmith. “And for us, Advent Aerospace means an ever-increasing emphasis on technology and innovation to bring great new products and services to our customers and offer new opportunities for our employees.
American Airlines has signed a pair of firm orders covering a total of 90 new Embraer and Bombardier regional jets for placement with its American Eagle regional affiliates, the airline announced Thursday. The deals involve 30 seventy-six-seat Bombardier CRJ900s and 60 Embraer E175s.
AFI KLM E&M has been awarded CCAR 145 approval by the Civil Aviation Administration of China for its Shanghai components maintenance shop. After a final audit carried out last month, during which the Chinese authorities inspected management systems, processes, technical manuals and technician qualifications, the workshop was granted approval as a maintenance organization on Chinese soil.
Kaunas, Lithuania-based FL Technics is implementing a $15 million MRO development plan that will create almost 300 new jobs, including more than 200 aircraft mechanics, engineers and other aviation technical personnel supporting commercial and business aviation customers. The company is focusing on operators from Europe, the CIS and Asia-Pacific.
Plans for a new 40,000-sq-ft paint hangar at West Star Aviation’s Grand Junction Regional Airport facility in Colorado are moving ahead, despite apparent fiscal problems facing the airport authority.
West Star had reached an agreement with the airport authority to build the paint hangar, after which the authority would issue an $8 million bond, purchase the hangar from West Star and then lease it back to the company.