FL Technics Jets supports Grafair with Hawker base maintenance solutions

FL Technics Jets, a global provider of tailor-made maintenance, repair and overhaul services for business aviation, is delighted to announce that recently it has provided comprehensive Hawker aircraft base maintenance support to its latest customer Grafair, a Swedish business jet and FBO operator.

The agreement with the Swedish carrier was signed in the beginning of 2015. Since then, FL Technics Jets has already provided the first set of MRO works on the Grafair’s Hawker 800XP business jet. The agreed upon service package comprised such maintenance works as a 12 Months’ Check of engines, APUs and other aircraft systems as well as defect rectification and other. All services were provided in the FL Technics Jets own MRO centre in Vilnius, Lithuania. Following the successful completion of the aforementioned works, the Grafair’s aircraft has returned to its base at Stockholm-Bromma Airport in Sweden. Additional scheduled maintenance works on the aircraft are to be conducted later this year.

”It‘s a real pleasure to support Grafair, one of the most prominent business aviation players in Europe, with our services. The fact that the Swedish carrier has placed its trust in our company and has since expressed full satisfaction with our services explicitly speak for the quality and reliability of our business aviation MRO solutions,” comments Darius Saluga, the CEO of FL Technics Jets. “We are proud to add Grafair to the map of our customers worldwide, and look forward to expanding our cooperation in the future.”

Grafair is a Stockholm-based international aviation company engaged in business, air ambulance and air taxi charter flights as well as Fixed-Base Operations (FBO). The company operates Cessna and Hawker aircraft. In 2014 European Business Air News (EBAN) awarded the company as the best FBO in Europe, Russia, the Middle East and Africa.

Flying private literally pays – business travellers show increased productivity

A recent study conducted by the National Business Aviation Association (NBAA) has revealed that more than 20 % of allbusiness aviation users felt more productive while onboard a private jet compared to working in their offices. Moreover, their counterparts using the services of traditional carriers have reported experiencing a 36% drop in productivity. With that in mind, it seems that time saving and unchallenging accessibility are not among the main reasons to choose business aviation anymore - its increased productivity that stands out the most.

Driven by the growing interest from CEOs and top managers, the global business aviation fleet keeps expanding at an unprecedented rate and is expected to comprise 22 650 aircraft by 2023, according to the recent Bombardier market forecast. In addition, studies reveal that apart from time saving and unchallenged accessibility, private flying contributes to increased productivity, which is actually reflected on the company's balance spreadsheet.

For instance, one Oxford Economics report estimates that around 10% of the revenue generated from business-related trips can be attributed to business aviation. In addition, private jet users are more successful at delivering value to their shareholders. In fact, according to the NBAA Business Aviation Fact Book 2014, business jet travellers generated 245% higher return for their shareholders (dividends plus stock price appreciation) than those travelling by other means of transportation.

"Currently, over 6 500 private aircraft are equipped with Wi-Fi connectivity, enabling CEOs, managers and entrepreneurs to perform their day-to-day tasks. It allows them to remain highly efficient during their flights, thus saving valuable time. Moreover, there is way less distractions whilst being on board of a private jet, as opposed to working in a busy office," shares Vitalij Kapitonov, the CEO of KlasJet. "Interestingly enough, even professional baseball teams are said to be 60 % more likely to lose their games due to the discomfort and hassles of a long commercial flight. Of course, while a lost game may leave thousands of fans with their hearts broken, losing time or efficiency in a vibrant business sector can accumulate millions of dollars in losses over a failed deal.”

In addition to the enhanced performance, business passengers report that they spend twice less time sleeping or resting in a private jet than those travelling with commercial carriers. Thus, according to the survey conducted by Louis Harris and Associates, with more time on their hands, business aviation users devote nearly half of their time (48 %) onboard to work-related meetings, conferences and discussions with other employees in person, on the telephone or via Wi-Fi.

“While business aviation is often commended for the increased time efficiency and flexibility it offers, there are way more benefits it actually provides. What was once just a flexible and convenient way to get from point A to point B, flying private now grants enhanced connectivity and work-friendly environment that wins over the majority of business passengers. With more and more users each day, no wonder that in 2014 alone business jet shipments increased by 6.5%,” concludes Vitalij Kapitonov, CEO of KlasJet.

Source and image: KlasJet

ALC firms up order for 55 A330neo and A321LR models

Air Lease Corporation (ALC), the Los Angeles based aircraft leasing company, has firmed up its order for 55 Airbusaircraft, comprising 25 A330-900neo and 30 A321LR - the very latest members of Airbus’ modern, fuel-efficient aircraft family.

ALC was first to sign up for the newest member of Airbus’ market leading widebody family, the A330neo, announcing a commitment for 25 A330-900neo during the launch at the 2014 Farnborough International Airshow. ALC was also the first to commit to the A321LR, the newest variant of the A321neo, after signing a Memorandum of Understanding for 30 at the launch in January 2015, increasing its commitment made for 60 A321neo at the 2014 Farnborough Airshow to 90 firm A321neo aircraft.

“We are proud to be adding these newest generation Airbus aircraft to our portfolio and to have played a part in launching these latest generation, efficient aircraft,” said Steven F. Udvar-Házy, Air Lease Corporation’s Chairman and Chief Executive Officer. “We see significant market appetite for Airbus’ A321LR and A330neo models, offering operators exactly what they want - even more range, even better economics and superior level of passenger comfort.”

“ALC is always ahead of the game and we are very happy to have them on board from the start with our latest A321LR and A330neo models,” said John Leahy, Airbus Chief Operating Officer, Customers. “We listen very carefully to our customers and are clearly seeing that our strategy to constantly improve our products through incremental innovations means we are able to not only meet but exceed their highest expectations.”

Including today’s announcement, ALC’s total firm orders for Airbus aircraft stands at 258, comprising 53 A320ceo Family, 140 A320neo Family, 15 A330 Family, 25 A350 XWB Family and 25 A330neo Family.

Source and image: Airbus

Aviation MRO in Africa in need of overhaul

Despite the fact that aviation industry creates around 6.7 million jobs and $6.8B for African GDP, it still remains an area for concern. There are a lot of factors to blame for such a performance, including limited technology, poor policing, cumbersome airport fees and taxes on jet fuel (which are about 20% higher than elsewhere on the globe), as well as the lack of political will. Nevertheless, first and foremost in order to start moving forward, the region has to properly address its MRO capabilities in both short and long term perspectives.

Currently African commercial aviation is a market with less than 400 aircraft. Nevertheless, one has to keep in mind that it has a huge population and major natural resources, allowing African economies to grow more than 5% in 2014 alone. Based on that, experts forecast that with the middle class on the rise over the next few decades the industry can achieve growth comparable to that of the Middle East, given, of course, it is managed correctly. At the same time, however, the continent’s safety record is still about eight times worse than enjoyed by any other of the five continents in the world, which makes improvements in the area a top priority.

“Political interference with technical aviation is widely regarded as one of the principal threats to aviation safety, be it in developed or less-developed markets. Therefore, to achieve the growth objectives, it is vital for African states to have effective and autonomous civil aviation authorities. Another challenge is increasing the pool of skilled and qualified maintenance labour, especially since more and more new aircraft models are introduced to replace the old ones, as the carriers grow their current fleets. Adding up to the issue is the brain drain affecting the future of African aviation. And then there are also numerous component logistics issues to address,” comments Aldas Juronis, the Head of FL Technics Components and Materials Sales Department.

Pressing challenges to developing appropriate aircraft maintenance capabilities in Africa include huge distances, sparse infrastructure and transferring parts between countries, especially since there are operations in remote Africa. Having tools and parts shipped into some areas is also very difficult because of many borders and different governmental policies, resulting in various customs obstacles. For instance, it may take several days to clear African customs, which naturally adds significantly to maintenance-related downtime during AOG situations. Meanwhile, Kenya charges a non-refundable railway tax of 17%, which has even resulted in a practice of shipping components to other areas to be installed.

“Currently much of the main drivers of African aviation MRO costs are component-related, creating many challenges, long delays and additional expenses. One of the possible solutions to this problem could be building up stock levels to mitigate the delays, enabling airlines to solve AOG situations rapidly and get the customers flying with minimal downtime,” states Aldas Juronis, the Head of FL Technics Components and Materials Sales Department. “At the same time, continuous challenges provide reasons to welcome new companies that might bring new solutions to old issues through strong relationships and constant examination of shipping problems. Much of these can be supplied by third-party providers that want to expand their operations on the continent. In any case, currently African aviation industry requires immense investments as well as a highly innovative and creative approach in order to tackle its problems and realize full potential.”

Source and image: FL Technics

Outcast club of Iran, North Korea and Cuba – an unexpected niche for a new Russian aircraft?

In February 2015 one of the Russian aviation suppliers declared its commitment to increase the number of non-foreign avionics in Sukhoi Superjet 100 airplanes from 48% to 80% thus lowering its dependence on foreign suppliers. The decision was prompted by the latest geopolitical shifts and the consecutive need to secure national aircraft programs from the potential escalation of sanctions against Russia. However, while Cuba, Iran and North Korea have first-hand experience of how sanctions may severely impact local air connectivity, it seems that the sanctions may actually break a trail for a new Russian aircraft to the forbidden niche market.

The castaways

At the dawn of their activity, the flag carriers of Cuba, Iran and North Korea were operating rather fresh Douglas,Boeing, Ilyushin and similar aircraft types. But over the decades of commercial, economic and financial embargos, their fleet became extremely old. And though the word „old“ is not applicable for an aircraft if it is properly maintained, a limited or restricted access to both spare parts and service providers takes its toll on any technology. Other issues associated with a neglected aging fleet include fuel efficiency, seat capacity, comfort, number of crew required, etc.

In his interview to Reuters in June 2014, Farhad Parvaresh, the CEO of Iran Air stated that the carrier would need at least a hundred of airplanes immediately after the lift of aviation-related sanctions thus emphasising the urgent need for fleet renewal. However, so far the sanctions were eased only for the supply of certain spare parts for Iranian aircraft, the absolute majority of which have been in the air for over 20 years now.

Meanwhile, the procurement or long-term lease of a Western-built plane is still a no-go deal as every aircraft of a U.S. origin (including non-U.S. aircraft which have over 25% of U.S. content by value) is subject to the U.S. Export Administration Regulations and thus may not be sold or transferred under dry lease to a country under economic and trade sanctions.

When it comes to Cuba, Iran and North Korea, the bar is even higher – aircraft and engines with 10% and more U.S. content cannot be exported or re-exported to the aforementioned countries. This automatically disqualifies not only Boeing and General Electric, but also Airbus, Rolls-Royce and other aviation manufacturers with major suppliers in North America.

The challenge of exterritoriality

In addition to trade restrictions for the non-U.S. Original Equipment Manufacturers (OEM), the U.S. Export Administration Regulations also extend to the owners and operators of such aircraft. For instance, in late 2013 the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) included three non U.S. air carriers – Ukrainian-Mediterranean Airlines (UM Air), Bukovyna Airlines, and Kyrgyz Trans Avia (KTA) – to the list of Specially Designated Nationals (SDN) list for supporting Iran Air and Mahan Air with the acquisition of new aircraft. Acting as intermediaries in the deal, the Eurasian carriers are now banned from any business related with the United States.

Another exemplary case is the ex-Qantas (Australia) Boeing 747s one of which ended up in the Iran Air fleet. According to the U.S. officials, Qantas sold the jets to a leasing company in the UAE. Then three Boeing 747s were sold to Sam Air (UAE) which, in turn, traded them to a Gambia-based leasing company. The latter leased one Boeing 747 to an Iranian Aban Air (now the aircraft is operated by Iran Air). The transaction of the remaining two aircraft was stopped by the U.S. authorities as soon as they identified the embargo violation. Under similar circumstances the authorities ended up blacklisting Orion Air, a Spanish airline, which wet leased a BAe 146 to the Syrian carrier Pearl Airlines.

Right from manufacturing and up to scrapping – throughout its entire life cycle an aircraft is subject to numerous international and local regulations. The U.S. laws certainly play a pivotal role in the system, since the majority of manufacturers, leasing companies, financiers and insurance companies are bound with the U.S. economic and legal systems. As a result, these players cannot ignore the restrictions imposed by the U.S. authorities. Such extraterritorial appliance concerns the Russian SSJ100 and the Chinese C919, too.

Who if not the Russians

Both China and Russia are currently developing their narrow-body C919 and MC-21 projects. The Russian regional SSJ100 is already operated in the CIS, North America and Asia. However, none of these aircraft can be sold to the sanctioned countries due to a substantial amount of the U.S. content, including engines, avionics and control systems.

In the meantime, the recent initiatives of Russian suppliers indicate the intention to equip the locally produced MC-21s and SSJ100s with Russian-made avionics and maybe even engines. However, the development and certification of the equipment will require at least a couple of years. And even if the re-equipment process goes smoothly, the manufacturers may still be unable to reduce the volume of U.S. content below 10% since the project was initially developing as a joint Russian-Western aircraft.

However, the hopes for a silver lining nurtured by the sanctioned countries may not be as far-fetched as it may seem. An unexpected solution may come in the shape of a new Russian Tupolev Tu-204SM. As of today, Tu-204 remains one of the very few Russian civil aircraft still in the production. Its latest modification – Tu204SM – provides up to 215 seats while its technical specifications are similar to the ones of Airbus A320 or Boeing 737 NG.

Initially, the aircraft was powered by PS-90A2 engines – the product of a joint Aviadvigatel/Pratt & Whitney project. However, after the U.S. State Department blocked the sale of five Tu-204SM jets to Iran in 2010, Russia bought out Pratt & Whitney’s rights in the PS-90A project and certified a new model - PS-90A3. Following the buyout, the manufacturer has announced that the aircraft may be equipped with Russian-made components by up to 93%. If such aircraft’s “purity” is reached, it will open the door to a unique niche market closed to other aircraft manufacturers.

At the same time, recently we have witnessed certain positive signals in the U.S.-Cuban and U.S.-Iranian communication. However, even if the trade embargos are eventually lifted, the manufacturers will still find it difficult to do business with the countries they have had little or no contact with for so long. In the meantime, over the years Russian manufacturers have built strong ties with local operators.

Apart from historical cooperation in both civil and military segments, Russia continues to support Cuba, Iran and North Korea with its commercial aircraft. For instance, in 2010 Russian aircraft leasing company Ilyushin-Finance (IFC) leased a Tu-204 to Air Koryo, the DPRK’s flag carrier. The company has also financed the delivery of two regional Antonov An-148 to the North Korean carrier and five An-158 aircraft to Cubana. In addition, the Russian and Iranian officials are currently discussing the opportunities to launch the production of Tu-204SMs in Iran.

At the same time, though Antonov and Ilyushin planes also feature on the delivery list, the production of new Il-96s was cancelled back in 2009 due to the overwhelming competition with more efficient Airbus and Boeing wide-bodies. Meanwhile, the future of An-148/158 aircraft which is a joint Russian-Ukrainian project is uncertain due to apparent reasons.

China’s role in the deal

The CEO of Iran Air stated that if no long-term embargo-lifting agreement to be reached the carrier will turn to Russian and Chinese manufacturers. Considering the aforementioned, Russian-built aircraft seem to be the only viable option for the carrier at the moment.

However, should large orders to follow, both the carriers and the manufacturer will require extra financing to support the deliveries as well as the expansion of the production line itself. This is the moment where Chinese banks step in. Unlike Cubana‘s short-term wet-leased Airbus and Boeings (whereas the actual operational control of the aircraft remains with the lessee), the acquisition or long-term lease of new aircraft will require substantial funds. Considering the fact that an approximate price of a Tu-204SM is USD35 million and taking into account all the geopolitical, legal and financial circumstances, Chinese banks may be the only option for acquiring the necessary funds.

In other words, the sanctions against Russia have already pushed the country’s leaders to actively seek for new partners. With proper political will in both Moscow and Beijing, Russian aircraft manufacturing industry may unexpectedly find itself in a niche market of outcast countries which no one wants (or cannot) to deal with. But for Russians, the unique environment will allow to show (and maybe even prove) technological and commercial advantages of a new aircraft type while Boeing and Airbus won’t be able to do anything about the evolving new competing product.

AIFA increases Seminole order as student numbers grow

South Africa's AVIC International Flight Training Academy (AIFA) at George has been stepping up its fleet as it has welcomed an increasingly international cohort of students from Asia and across Africa.

The academy has acquired seven Piper PA44-180 Seminoles with glass cockpit configuration, to enhance its multi-engine flight training programme.
The school took two Seminoles in October but has stepped up its order.
The first four are equipped with Garmin 500 cockpits, and the remainder with Garmin 1000.
In January AIFA took delivery of eight new Cessna 172's at its Lanseria facility. This brings the number of new 172's they have had delivered up to 19
"The Seminole comes with a long history and excellent track record, and the 180hp engines make it a dynamic machine which needs to be well mastered," said director Willem Marais. “We operate at sea level and lower temperatures from our base at George and the aircraft gives us an excellent service," he said

DHL named Africa's top international freight forwarder

DHL Global Forwarding scooped the award for Africa's International Freight Forwarder of the Year for the 3rd time. In a ceremony at the Air Cargo Africa event in South Africa yesterday.

Roger Olsson, CEO, DHL Global Forwarding Sub Saharan Africa, who received the award, said: “DHL offers tailor-made solutions to businesses in Africa and it’s a service that’s second to none. It’s a tribute to DHL’s strong African team that their dedication to excellence in international freight forwarding has been recognised yet again. DHL has been supporting the business in Africa for more than 35 years now but what’s most important is that we have continued to anticipate, adapt and create services that clearly meet Africa’s fast evolving business needs and help fulfill its vast potential.”

According to the 2014 year-end report by the International Air Transport Association (IATA), trade activity across the African region remained positive despite major economies Nigeria and South Africa underperforming for parts of 2014. Regional growth supported demand for air freight and capacity rose just 0.9% for the year as a whole, helping to strengthen load factors. 

African carriers’ freight tonne kilometers (FTKs) grew by 12.2% in December and 6.7% for the year as a whole. Globally, the air cargo business is growing again after several years of stagnation with demand growth up 4.5% compared to 2013 measured by freight FTKs.

DHL Global Forwarding was recognized for being the leading service provider in the region’s air freight industry. With a focus on the Oil and Gas and the Mining sectors in the past few years, DHL’s freight management team has been very successful in developing customized solutions for customers in these sectors. “We also saw significant volume growth in Africa in both its regular and charter operations connecting all regions with Africa for the Oil and Gas and the Mining sectors. In addition, the India-Africa and China-Africa lanes are growing strongly, driven mainly by the life sciences, pharmaceutical and high tech sectors,” Olsson said.