ARC NEWS
Helvetic's first E195-E2 to arrive in June
May 17, 2021
Helvetic Airways will receive its first Embraer 195-E2 in June, after converting E190-E2 orders to the larger model. The Swiss regional carrier had originally ordered 12 E190-E2s, under an agreement disclosed in 2018, and took delivery of a first in 2019. Last year, Zurich-based Helvetic disclosed an deal to convert four orders to the E195-E2. All of the larger aircraft would be delivered in 2021, the airline said in July. Embraer Commercial Aviation chief executive Arjan Meijer says in a 14 May Twitter posting that Helvetic's first E195-E2 is on schedule for delivery in June. Data shows that Helvetic has eight E190-E2s and five E190-E1s, of which two and three, respectively, are listed as being in storage. All six in-service E190-E2s and one -E1 are being operated under a wet-lease agreement for Lufthansa subsidiary Swiss. The remaining in-service E190-E1 is being operated within Helvetic's own network. Earlier this month, Helvetic disclosed a number of seasonal routes to Greek and Spanish island destinations, to be served in collaboration with tour operators Universal and Hotelplan Suisse from July until October. The airline intends to offer additional, last-minute "pop-up flights" as part of its summer schedule.


​Rising crude pushes jet fuel to yearly highs
May 14, 2021
The price of jet kerosene has risen to its highest point since the start of the pandemic, pushed up by stronger crude prices. Petrochemical market information provider ICIS – assessed the cost of barge-delivered jet fuel in the Amsterdam-Rotterdam-Antwerp import region at $577.25-578.25 per tonne on 11 May, a rise of $9 per tonne from the previous week and up from $528-528.50 per tonne four weeks ago. This time last year, jet fuel deliveries in the region were priced at around $200 per tonne. ICIS notes that, amid limited buying activity and ample supply, price increases have been driven by firmer upstream crude costs. A state of contango, in which futures prices remain above spot prices, "is likely to persist", predicts ICIS, although "sufficient stocks storage" means that "economics remain discouraging". ICIS adds: "Jet kerosene outright values remained largely firm at last week’s levels supported by greater steadiness in upstream Brent crude futures, hovering around $68 per barrel for most of the week, further buoyed by the US Colonial Pipeline disruption." Although crude prices did actually fall during April amid ongoing lockdowns in Europe and the worsening Covid-19 situation in India, "ICIS expects oil demand to recover at a higher rate in June, when it is expected that most countries will aim to remove major restrictions". Supply additions by the OPEC+ group from May could act to counter this extra supply and restore some balance to the market, ICIS suggests. In North America, the price of jet kerosene for delivery to New York Harbor rose by 2.75 US cents per US gallon in the week to 11 May, reaching 185.75-186, which compares with 166.50-166.75 four weeks ago. "Jet fuel supply in the northeastern and southeastern US is tightening as shipments are unable to be delivered due to the Colonial Pipeline shutdown," notes ICIS. In Asia, the price of jet fuel for delivery to Singapore was marginally higher week on week, at $71.18-71.58 per barrel, against $64.69-65.09 four weeks ago. "The market remains supported by an upbeat demand outlook in the US and Europe with air travel expected to pick up as coronavirus restrictions are eased," writes ICIS. "There has also been some upside from the shutdown of the Colonial oil product pipeline in the US following a cyberattack." However, it notes that demand is being held lower in Asia by weaker demand from India, which could be compounded by the return of several refineries in South Korea over the coming weeks following maintenance, boosting the supply of kerosene into the market.


FAA approves fix for Boeing 737 Max manufacturing error
May 14, 2021
The US Federal Aviation Administration has approved a fix proposed by Boeing to repair electrical power problems on around 106, 737 Max aircraft, allowing the airframer to remedy the manufacturing error and help airlines return those affected jets to service. The FAA says it has "approved the service bulletins and associated instructions" proposed by Boeing for its airline customers that grounded the 106 Max jets in April after the airframer reported the manufacturing glitch. The FAA's approval of the Max remedy was first reported by Reuters. Once airlines receive the instructions approved by the FAA, the maintenance fix for the back-up power control system on the 100 jets will take several days per aircraft, Boeing says. The manufacturing errors could affect Max electrical systems including standby power control units and instrument panels. The FAA has said the affected Max 8 and Max 9 jets are in the fleets of around 20 airlines, including 71 Max aircraft in the fleets of Alaska Airlines, American Airlines, Southwest Airlines and United Airlines. Those four US airlines grounded the affected Max jets in April. Boeing also halted deliveries of all Max jets in April, interrupting its efforts to accelerate the return of service for its backlog of pre-ordered jets in storage. That month Boeing logged 20 new orders for Max jets, which was nearly offset by 17 cancellations for Max jets. The manufacturing glitch also disrupted its attempt to boost confidence in Max jets and depart from criticism of the two fatal crashes that led to the deaths of 346 people, a 20-month flight ban against Max jets and international scrutiny. The FAA in November 2020 allowed Max jets to return to service and Boeing says 170 of 195 global aviation regulators have reopened their airspace to Max jets. The US Department of Transportation's top inspector in April, however, commenced a new investigation into how the FAA both grounded and recertificated Max jets. The FAA is still investigating the origin of the manufacturing issue that led to the electrical grounding problem affecting certain Max aircraft. "The agency also is auditing Boeing’s process for making minor design changes across its product line, with the goal of identifying areas where the company can improve its processes," the FAA says. "These initiatives are part of our commitment to continually evaluating and improving our oversight of all aspects of aviation safety, recognising that catching errors at the earliest possible point enhances what is already the world’s safest form of transportation." Boeing is also trying to ensure safe, stable production of its 787 aircraft. The manufacturer on 26 March resumed deliveries of the 787 aircraft type following a five-month pause due to concerns about its fuselage. The airframer maintains its goal of increasing Max production to 31 aircraft per month by 2022 and aims to deliver its first 777X widebody aircraft by late 2023.


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