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Monday, November 28th, 2022

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Airbus facing jet delivery cutbacks in 2023 owing to competition for engines

While Airbus is currently remaining quiet until it releases its next delivery bulletin in December, unnamed internal sources have commented that the European plane manufacturer is expecting to face further delays in 2023 for the delivery of its medium-haul aircraft owing to supply chain and labour problems, predominantly focused on the supply of engines. Part of the cause relates to further supply chain problems being faced by engine manufacturers which has seen them face an unusual dilemma.

The rapid return to service of many aircraft after being grounded during the pandemic has caught many repair shops off guard and, consequently, they are placing greater-than-anticipated demand on engine manufacturers not just for spare parts, but also spare engines for existing aircraft. This has created competition for engines between assembly lines for new aircraft and spares for existing fleets. Currently there is a logjam of grounded aircraft awaiting engines coming out of overhaul facilities.

In the medium-haul market sector, Airbus produces the A320neo-family jet with a choice of engines from General Electric and Safran joint venture CFM International or Raytheon Technologies’ unit Pratt & Whitney. Boeing uses only CFM engines for its 737 family of aircraft. There are indications that the total number of laid-up A320neo-family jets has risen since early this year, led by Pratt & Whitney-powered versions.

As reported by Reuters news agency, according to Ascend by Cirium's head of global consulting Rob Morris, currently some 129 Pratt-powered Airbus jets and 55 fitted with CFM's LEAP engines are parked up. Engine makers have denied that the delay in jet deliveries is being caused by delayed engine supplies but other supply chain problems, such as a shortage of gallies and lavatories.

In July, Airbus said it would reach an interim production goal of 65 A320-family narrow-body jets a month in early 2024 instead of summer 2023. It is still targeting 75 a month in 2025.

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Rolls-Royce and easyJet set new aviation milestone with world’s first run of aero engine on hydrogen

Rolls-Royce and easyJet have confirmed they have set a new aviation milestone with the world’s first run of a modern aero engine on hydrogen.

The ground test was conducted on an early concept demonstrator using green hydrogen created by wind and tidal power. It marks a major step towards proving that hydrogen could be a zero carbon aviation fuel of the future and is a key proof point in the decarbonisation strategies of both Rolls-Royce and easyJet.

Both companies have set out to prove that hydrogen can safely and efficiently deliver power for civil aero engines and are already planning a second set of tests, with a longer-term ambition to carry out flight tests.

The test took place at an outdoor test facility at MoD Boscombe Down, UK using a converted Rolls-Royce AE 2100-A regional aircraft engine. Green hydrogen for the tests was supplied by EMEC (European Marine Energy Centre), generated using renewable energy at their hydrogen production and tidal test facility on Eday in the Orkney Islands, UK.

Grazia Vittadini, Chief Technology Officer, Rolls-Royce, said: “The success of this hydrogen test is an exciting milestone. We only announced our partnership with easyJet in July and we are already off to an incredible start with this landmark achievement. We are pushing the boundaries to discover the zero-carbon possibilities of hydrogen, which could help reshape the future of flight.”

Following analysis of this early concept ground test, the partnership plans a series of further rig tests leading up to a full-scale ground test of a Rolls-Royce Pearl 15 jet engine.

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IATA awards Etihad Cargo with CEIV pharma recertification

Etihad Cargo, the cargo and logistics arm of Etihad Aviation Group, has been awarded Centre of Excellence for Independent Validators (CEIV) Pharma recertification by the International Air Transport Association (IATA). The carrier is one of only 37 airlines to hold IATA CEIV Pharma certification globally.

The UAE's national carrier first achieved IATA CEIV pharma certification in 2019 in conjunction with its hub at Abu Dhabi International Airport and Etihad Airport Services Cargo. Etihad Cargo went on to become the first airline in the Middle East and only the third globally to hold the trilogy of CEIV Pharma, CEIV Fresh and CEIV Live Animals certifications.

Etihad Cargo achieved IATA CEIV Pharma recertification following an audit by independent validators that assessed the carrier's capacity to control and enhance its processes through a checklist that focused on Etihad Cargo’s quality management system that incorporates supplier management, training programmes, processes and procedures, audit programmes and quality enhancement, among others.

Achieving recertification demonstrates Etihad Cargo's and its dedicated pharmaceutical transportation product PharmaLife's full compliance with specific pharmaceutical regulations, including IATA Temperature Control Regulations (TCR), Good Distribution Practices (GDP), a quality system for warehouses and distribution centres dedicated to medications and life sciences products.

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Hawaiian Holdings reports 2022 third-quarter financial results

Hawaiian Holdings, parent company of Hawaiian Airlines, has reported its financial results for the third quarter of 2022. The company reported GAAP net loss of US$9.3 million and adjusted net loss of US$7.7 million. EBITDA of US$46.8 million and adjusted EBITDA of US$47.9 million.

The company is seeing strong demand throughout its domestic network and a solid recovery in its international network. The Company's overall operating revenue was down 1.9% from third quarter 2019 as its international network is still rebuilding.

Other revenue was up 28.2% compared to the third quarter of 2019 driven by a strong quarter of cargo revenue and sales of HawaiianMiles.

On October 21, 2022 , the company announced an eight-year agreement with Amazon to provide flight operations and maintenance services for Amazon's air cargo operation. Amazon will provide a minimum of ten A330-300 freighter aircraft and will provide crew and line maintenance for this fleet. The initial aircraft are scheduled to enter service in the second half of 2023. In support of this business, the company will open mainland base(s) for crew and maintenance. Under the agreement, Amazon can grow its fleet with Hawaiian above the initial ten aircraft and extend the contract beyond the initial eight-year term. This agreement will provide the company with a new long-term diversified stream of revenue with no aircraft acquisition costs. As part of the agreement, Amazon will receive warrants to acquire up to 9.4 million of the company's common shares vesting over nine years.

As of September 30, 2022, the company had uUnrestricted cash, cash equivalents and short-term investments of US$1.4 billion.

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Hong Kong International Airport officially commissioned third runway

The third runway at Hong Kong International Airport (HKIA) was officially commissioned on November 25, marking a key milestone of the airport’s expansion into a Three-runway System (3RS). 

The construction works of 3RS started in August 2016. The formation of 650 hectares of land (equivalent to 34 Victoria Parks) through reclamation was completed in around four years. The 3,800m-long runway started operation in July 2022. The expansion of Terminal 2, construction of T2 Concourse, a new baggage handling system and automated people mover system are scheduled for completion in 2024 on time and within budget.

NAC delivers one ATR 72-500 to Canaryfly

Nordic Aviation Capital has delivered on an operating lease one ATR 72-500 aircraft to Canaryfly. Canaryfly is a Spanish airline that operates regular flights between the Canary Islands

The airline, with its headquarters at the Gran Canaria airport, began its operations in 2008 and in its beginnings the airline covered regular routes between the Canary Islands and Africa. In May 2012, Canaryfly inaugurated its first inter-island route.
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