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LATEST NEWS
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Wednesday, November 23rd, 2022
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Based in West Sussex in the UK, the AJW Group, an independent world leader in aircraft component parts, repair, and supply chain solutions provision, has announced it is now to offer aircraft remarketing. The new division will comprise a team of highly experienced remarketing specialists and will provide a tailor-made service to meet the challenging needs of aircraft operators, owners, investors, and insolvency practitioners looking for convenience and reducing administration while also maximising their assets’ potential value.
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The team is led by Tony Whitty, Senior Vice President Sales, who spent over 30 years in aircraft remarketing, helping many airlines, banks and other owners remarket their assets. Tony is joined by Charley Cleaver and Alex Babis, all three having worked together on many projects and who collectively have over 75 years of remarketing experience within the commercial aircraft market sector. AJE has been involved in the field of aircraft maintenance, gaining a comprehensive technical knowledge relating to operating costs and the full life cycle of an aircraft. The new aircraft remarketing team already has a global network and appreciable industry insight to enable it to negotiate the best possible solution that maximises the asset value and save customers time and money.
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AJW has a global presence with operational hubs and local offices across Africa, Asia Pacific, China, CIS, Europe, Latin America, Middle East and North America. Additionally, a key part of AJW Group is AJW Technique, a 220,000 sq. ft state-of-the-art Component MRO facility based in Montreal, Canada.
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Continued strength in travel demand has resulted in the Qantas Group upgrading its profit expectations for the first half of full-year 2023 (FY23).
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The Group now expects an Underlying Profit Before Tax of between AU$1.35 billion and AU$1.45 billion. This represents a AU$150 million increase to the profit range given in early October 2022.
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Fuel costs remain significantly elevated compared with FY19 and are expected to reach approximately AU$5 billion for FY23, which would be a record high for the Group despite international capacity at around 30% below pre-COVID levels.
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Operational performance has continued to improve, with Qantas ranking as the most on-time domestic airline in October. The AU$200 million investment in rostering additional staff, continued recruitment and reserve aircraft will help maintain these levels during the latest wave of COVID infections in the community and into the busy Christmas period, as well as limiting the impact of extreme weather (especially wind) in November.
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The Group’s net debt is now expected to fall to an estimated AU$2.3 billion and AU$2.5 billion by December 31, 2022. This is around AU$900 million better than expected in the most recent update, due largely to the acceleration of revenue inflows as customers book flights on Qantas, Jetstar and partner airlines into the second half and beyond, as well as deferral of approximately AU$200 million of capital expenditure to the second half.
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Around 60% of the AU$2 billion in COVID-related travel credits held by the Group have now been redeemed by customers. Total credit usage is consistent at a rate of circa AU$70 million a month and new initiatives will be announced shortly to encourage full use of remaining credits over the next year.
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Of the AU$400 million share buyback announced in August 2022, 76% is now complete at an average price of AU$5.66. Low levels of net debt put the Board in a position to consider future shareholder returns in February 2023 consistent with the Group’s financial framework and phasing of capital expenditure for fleet renewal.
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The Group recently finalised a three-year agreement with Jetstar pilots as part of its improved pay policy and expects to reach in-principal agreements with others in coming weeks. More than 6,500 employees, or 33% of those covered by an enterprise agreement, have now signed up to a post-COVID EBA. The Group remains on-track to share the benefits of the recovery with around 20,000 non-executive employees through a AU$5,000 boost payment and up to 1,000 Qantas shares (currently worth approximately AY$6,000), subject to key conditions being met.
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The Airbus A320neo family and Boeing 737 MAX will be the most predominant narrow-body aircraft by 2032, according to insights revealed on November 22, by IBA, a leading aviation market intelligence and consultancy company.
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In a narrow-body aircraft webinar, IBA experts outlined that global capacity recovery towards 2019 has slowed in the second half of 2022 but is continuing into 2023. According to data from IBA’s Insight platform, this slower rate of recovery is strongly influenced by the Asia Pacific region which is currently at just 55% of 2019 levels, through the end of October.
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Further intelligence from IBA Insight found that new narrow body aircraft market values have broadly recovered to pre-pandemic levels. For instance, the 2022 base value of a new A320neo is 3.5% higher than 2019, and the 2022 and 2019 values of a Boeing 737MAX 8 are on par. By contrast, mid-life aircraft values are recovering at a slower pace, with a 15-year-old A320-200 around 25% behind 2019 levels.
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Sharing data on lease rates, IBA experts explained that new aircraft rates are rising to above 2019 levels. This is largely driven by a combination of short supply and rising demand and interest rates. Overall, narrow-body lease rates are recovering, and lease rate factors are rising due to the cost of borrowing. Previous generation narrow-body lease rates have followed a slower path of recovery but are set to benefit from new aircraft supply constraints.
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Passenger markets have opened, and demand is recovering with the majority of travel restrictions now lifted Supply chain and OEM bottlenecks are easing slowly which in turn is helping lease rate recovery.
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Despite this, inflation, interest rates and labour costs are all causing issues for the aviation industry Operational costs are set to rise due to increased labour and jet fuel costs.
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Furthermore, a strong U.S. dollar combined with sanctions on Russian oil will add further cost pressure for the industry.
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Lufthansa and EPCOR have entered into an exclusive agreement to provide availability to the German airline's first Boeing 787-9 aircraft of the 787 fleet with APS5000 Auxiliary Power Units (APUs).
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The airline took delivery of its first Dreamliner in August 2022, with four more to follow in the coming weeks. Lufthansa ordered in total more than 30 Dreamliner’s to strengthen its wide-body fleet. As a subsidiary of AFI KLM E&M and as centre of excellence specialized in APU maintenance, EPCOR will handle all warranty repairs on the APS5000s concerned that includes an availability solution.
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EPCOR is now one of only three workshops in the world licensed to overhaul and repair this APU. Approximately 40% of the 787 APUs worldwide are supported at EPCOR's shop at Amsterdam International Airport in Schiphol.
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Aeronautical Engineers, Inc. (AEI) has released that the Directorate General of Civil Aviation (DgCA) for the Republic of Indonesia has approved AEI’s STC (ST02690LA) for the 12-pallet position B737-800SF freighter conversion.
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AEI has gained FAA, CAAC, EASA, TCCA, UK CAA, CAACI (Cayman Islands) DCA (Guernsey), ANAC, CAAM, and now Indonesian approvals for its B737-800SF.
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AEI is currently the only conversion company to have ETOPS 180 approval on the 737-800 freighter conversion. Additionally, AEI can convert all 737-800 line number aircraft including those with Flat Aft Pressure Bulkheads and Split Scimitar winglets
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Wizz Air is further expanding its base in Cyprus, where the airline will allocate two of its Airbus A321neo aircraft.
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The allocation of these aircraft is enabling the launch of three new routes as well as increased frequency on six routes from Larnaca International Airport.
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The allocation of two more aircraft to Wizz Air’s Larnaca base will grow the base to four aircraft. The move brings the number of routes from the base to 32, including the launch of three new routes from Cyprus’s third largest city.
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Passengers will now be able to fly to Dammam, Jeddah and Riyadh in Saudi Arabia. Furthermore, the additional capacity allows Wizz Air to increase the frequency of its flights from the base to Athens, London Luton, Prague, Tel Aviv, Thessaloniki, Yerevan.
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