Jazz experiencing capacity constraints due to pilot shortage
August 08, 2023
Strong industrywide demand for pilots is causing capacity constraints at Canadian regional carrier Jazz Aviation, according to the chief executive of parent company Chorus Aviation. "There is a gap between pilots exiting the organisation and the time it takes to train new hires for productive flying, which temporarily constrains available flying hours," said Colin Copp during Chorus's second-quarter earnings call held on 4 August. He adds that the company is "actively recruiting" pilots and growing its pipeline of future pilots through its Jazz Pathway Program – which offers top-performing graduates the opportunity to transition to first officer positions at the carrier – as well as through its new flight training academy Cygnet Aviation. Jazz's pilot flow agreement with Air Canada is "working as intended", Copp says, adding that 300 pilots have transferred to the mainline carrier over the past year, though there has also been some attrition to other airlines. Jazz continues to see a "good supply of new hire pilots", according to Copp. He goes on to say: "The leadership team at Jazz is very focused on collaborating with our partner Air Canada to coordinate pilot flow and flying capacity. While the production in annual block hours is temporarily constrained as the pilots are getting trained, the reduction in flying does not have any impact on Jazz's earnings". Copp believes the constraints will lift later this year and next year, but it will depend on "what happens in the business big picture wise". "If things slow down a little bit then we'll recover really quickly," he adds. "If the demand continues and we see more growth in the mainline side, we're going to continue to produce lots of new pilots – that's for sure." Chorus chief financial officer Gary Osborne notes during the same earnings call that Jazz has a "fixed margin in place with Air Canada that does not vary regardless of flying". "So from an economic perspective, as far as the fixed fee... there is no impact associated with the reduced flying," he says.
Embraer delivers 17 commercial jets in the second quarter
August 07, 2023
Embraer delivered 17 commercial aircraft in the second quarter of 2023, which the Brazilian airframer says is a 55% increase on the corresponding quarter in 2022. So far during 2023, Embraer has delivered a total of 24 commercial aircraft. The deliveries in the recent quarter comprised 10 E175s and seven E195-E2s. Embraer notes the previously announced news that American Airlines placed a firm order for seven additional E175 aircraft to be operated by its regional subsidiary Envoy Air. The manufacturer also notes its firm order from Binter for six E195-E2s, which will bring Binter's E2 fleet to 16 jets when deliveries are completed. The Spanish airline said last month that it was financing the aircraft with an agreement with a consortium of Spanish banks, including Santander, Caixabank and BBVA. The aircraft are scheduled for delivery in 2024-25. Embraer adds that in Asia-Pacific, Malaysia's SKS Airways closed an agreement to add ten E195-E2 jets to its fleet. Scoot, a low-cost subsidiary of Singapore Airlines, is also adding nine E190-E2s to its portfolio. Four E175s have begun to operate with Star Air, an Indian airline that already operates E-Jets, Embraer says. In the Middle East, Royal Jordanian Airlines reached an agreement to introduce eight E190-E2 and E195-E2 jets into its operations, with deliveries starting in the fourth quarter of 2023. As of 30 June 2023, Embraer had a firm order backlog of 271 aircraft, which it notes includes orders for the defense segment placed by state-run airlines including Satena and TAME.
Airbus discloses A350 orders booked in July
August 07, 2023
Airbus booked orders for 11 A350-900s in July, while three orders for the long-haul twinjet were deleted from the manufacturer's backlog. Data from the European airframer shows that it received two orders from undisclosed customers, on 11 and 31 July, for four and six A350-900s respectively. Iberia meanwhile added a single A350-900 order, bringing its backlog for the model to four aircraft. The Spanish carrier has so far received 17 A350-900s from the airframe. The cancellation of three A350-900 orders has reduced Airbus's number of customers for the type to 55, from 56 in June. The customer that cancelled the order was not yet an A350 operator. Beyond widebodies, Airbus received an order from Turkish carrier Pegasus for 36 A321neos, while Icelandair finalised an order for 13 A321XLRs. Single-aisle deliveries in July comprised 54 aircraft: 31 A321neos, 17 A320neos, one A319neo (for Tibet Airlines) and five A220-300s. Airbus had delivered 63 single-aisles in June. From its widebody lines, the manufacturer delivered five A350-900s, three A350-1000s and three A330-900s in July. Cathay Pacific, China Eastern Airlines, Singapore Airlines, Turkish Airlines and Volaris each received an A350-900, while British Airways and Qatar Airways took delivery of one and two A350-1000s, respectively. The A330neos were handed over to China Eastern, Condor and Italian carrier ITA Airways. Airbus had delivered nine widebodies in June. The manufacturer's total commercial aircraft deliveries in 2023 stood at 381 at the end of July.