ARC NEWS
AerCap delivers final A321neo to Air India
May 19, 2023
AerCap has delivered a fourth Airbus A321neo aircraft to Air India. With this delivery, the Irish lessor says it has completed a mandate for the lease of four new A321neos with the Indian flag carrier. The aircraft, powered by CFM International LEAP-1A engines, are the first A321neos to be inducted into the Air India fleet, Aercap notes. "It is a very exciting time for Air India as it returns to Tata Group ownership and transitions its fleet to meet the rapidly growing Indian aviation market," AerCap's chief commercial officer Peter Anderson says. "AerCap is delighted to play a role in Air India's fleet transformation by providing its first tranche of neo aircraft on operating lease." Air India's chief commercial and transformation officer Nipun Aggarwal states: "These four new, leased Airbus A321neo aircraft join our fast-growing fleet as part of the sweeping transformation in progress at Air India."


CAA 'resourced for yesterday's world': UK aerospace trade group
May 19, 2023
The UK Civil Aviation Authority is not adequately resourced for its post-Brexit role as a standalone regulator, especially in regard to new rules for emerging technologies, argues the chief executive of UK aerospace trade association ADS. Speaking at a media briefing in London on 16 May, Kevin Craven said that that policymakers have yet to ensure regulatory certainty for all aerospace areas since the CAA became independent from the European Union Aviation Safety Agency in 2020. Public debate about a "bonfire" of EU laws – a term coined by UK politicians supporting the abolishment of retained European laws since Brexit – "was not helpful" in the process of creating regulatory certainty, Craven says, adding: "I think there is more work to be done in that particular area." Craven doubts the UK regulator is in a position to fulfil all its requirements: "I don't think the CAA is adequately resourced for all of the demands, not necessarily just from a Brexit perspective, but rather from a whole new world of innovation." Citing electric air taxis, drones and new ways of using airspace as examples, he recalls previous suggestions that the CAA's new independence could represent an opportunity to carve a niche as a trailblazer for new regulations governing emerging technology. But he asserts: "We generally don't feel that the CAA is perhaps adequately resourced to address those new opportunities. They are kind of resourced for yesterday's world, but the world is moving on." In 2022, the UK government launched an independent review of the CAA to ensure that it can provide "world-leading regulation and public services for decades to come". Overall, Craven says aerospace business, especially larger ones, have adapted to the UK's post-Brexit conditions and moved on "as much as we can". He does note increased bureaucracy and paperwork for businesses and that some smaller companies, especially in Northern Ireland, have found it harder to adapt to the new trading environment. He credits the current UK government for having improved relations with EU institutions since Brexit. "There is no question that this particular administration has done a great deal to improve the tone of the conversation." The Windsor Framework agreed by UK prime minister Rishi Sunak and European Commission president Ursula von der Leyen in February regulating the transport of goods in Northern Ireland represents a example of a recent improvement, with Craven stating. "All of these things are doing wonders for some of the relationships." He highlights, however, that the pandemic had a bigger impact on the UK aerospace sector than Brexit – "by a large factor". He adds: "Brexit, it's a fact of our life. Businesses have learned how to cope with it. Is there more that could be done? Of course. [But] in terms of anyone making bold political statements like freedom of movement coming back? I don't expect it any time soon." Craven voices concern about continued access for UK aerospace players to the EU's Horizon research and innovation programme. In 2021, the UK government said it would seek an associate role in the scheme, and UK players have been able to continue applying for Horizon funding. The programme has a €95 billion ($103 billion) budget and runs until 2027.
However, the UK's associate role has not been finalised since, while a deadline for UK applications has been set for 30 June 2023. UK Research and Innovation states on its website that successful UK-based Horizon applicants will receive funding regardless of the outcome of the government's efforts to associate with the EU scheme. Craven says he is "not confident at all" about the prospect of an accord for continued UK participation in Horizon. "Access to Horizon is unquestionably a price worth having, no question whatsoever about that. The relationships, collaborative networks, the freedom of intellectual movement around R&D… is enormously helpful. Being outside of that is a challenge." He is a doubtful that an alternative, national R&D support scheme would provide adequate replacement for Horizon. "It would take many years and to reach the same level of effectiveness would require substantially more money. So, in my view that is not the same as access to Horizon, and we should continue to fight for that as hard as we possibly can."


SIA cancels eight 737 Max 8s and upgauges three 787s
May 18, 2023
Singapore Airlines has cancelled orders for eight Boeing 737 Max 8s and converted three on-order 787-9s to the larger -10 in its latest reshuffle of its group orders. "These adjustments are in line with the group’s long-term fleet renewal strategy, and support its projected operational requirements," the carrier states. In an analyst briefing executive vice-president for finance and strategy Tan Kai Ping described the decision for the 787 type swap and Max 8 cancellation as "completely network driven", adding that the upgauging to the -10s enables it to increase seat count on certain routes. "So [it's] just our view of how we think demand will evolve, and how we think then we need to evolve the network," he says. Fleets data shows that SIA operates 16 787-10s, and prior to the announcement, had seven more on order and options on six more. The original 787-9s on order that are being converted to -10s are coming from Scoot's orderbook, which will now reduce to three 787-8s and one -9. The budget carrier has 10 787-8s and 10 787-9s in service. The data shows that SIA has 16 737 Max 8s and seven 737-800s in service, while two more -800s are listed as stored. Of the Max 8s, 10 are owned unencumbered by the airline, and six are on operating leases from BBAM. With the latest adjustments, SIA says that the mainline carrier's orderbook, including options, is now comprised of three Airbus A350s, 15 787-10s, 31 777-9s, 13 737 Max 8s and seven A350Fs. Scoot's also holds orders for 12 A320neos, six A321neos and nine Embraer 190-E2s. SIA is considering options to buffer against the expected delivery delays of its 777-9s, chief executive Goh Choon Phong says, including extended leases on existing aircraft and operating its older 777-300ERs past their planned retirement dates. "Those we determine to be sufficient to mitigate that deferred delivery of 777-9s," he says. The delivery delay will see it push back introduction of its new cabin product on board the 777-9s to 2025. "As part of conversations with our OEMs, we're also looking at how we want to re-arrange the deliveries of various aircraft types to better match our outlook on how recovery will come," Goh adds.


LOG ON

CONTACT
SGS Aviation Compliance
ARC Administrator
SGS South Africa (Pty) Ltd
54 Maxwell Drive
Woodmead North Office Park
Woodmead
2191
South Africa

Office:   +27 11 100 9100
Direct:   +27 11 100 9108
Email Us

OFFICE DIRECTORY
Find SGS offices and labs around the world.
The ARC is a mobile friendly website.