ARC NEWS
Boeing will come through 'extremely difficult' time: AerCap chief
March 04, 2021
AerCap chief executive Aengus Kelly believes Boeing is facing an "extremely difficult" time as it tackles problems with its 787 production programme, but he is confident the US manufacturer can resolve its issues. Briefing analysts on 2 March, Kelly said that the pace at which AerCap could receive six on-order 787-9s would depend on how quickly Boeing was able to make necessary repairs, and on the US Federal Aviation Administration. While it is hard to tell how much the schedule will be delayed, Kelly concedes that a number or all of the deliveries are likely to slide to the right. "I do think that Boeing will fix those issues – they will get them resolved. It's an extraordinarily difficult time for the company," he says. "I am sure they will get through it." Kelly says the current tariff dispute between the USA and European Union over subsidies to Airbus and Boeing will be resolved, noting that tens of thousands of high-tech jobs at dependent on the trade flow of the two aircraft manufacturers. "It has to get resolved. There are no winners out of this... I know the people who run both of these businesses; I know that is what they want to see," he says. Kelly says AerCap remains a "big believer" in the widebody market, despite the impact from a lack of international travel demand. He declares himself "very confident" in aircraft such as the 787-9 and the A350-900. Other large jets such as the 777X and the A380 may take longer but are likely to find a "sweet spot", he believes. AerCap has been able to re-lease two 787s previously placed with Norwegian, and has signed letters of intent for others. The Irish lessor has also sold one 787 since the end of the fourth quarter. Kelly re-emphasises that AerCap avoids holding on to "end of the line" widebodies and warns of the pitfalls of owning older A330 and 777s. While acknowledging that it can be "very tempting" to own these types as they provide a "big lease rental" for a short period of time, he warns that anyone who bought these types over the last five to six years is going to "get what's coming to you" as they are replaced by airlines. "You won't get 25 years out of them," he asserts. AerCap has been "very deliberately" avoiding the types for a decade, he adds, noting that while you can avoid near-term impairments while the aircraft are on lease, "reality bites" when they come off lease. Kelly says only 3% of AerCap's orderbook consists of "very old" A330s, and 4% of 777s that are also "very old – and declining rapidly".


Saudi regulator latest to approve 737 Max services
March 03, 2021
Saudi Arabia’s civil aviation regulator has become the latest to approve operations with the Boeing 737 Max, although none of the kingdom’s airlines yet operates the type. Flag carrier Saudia’s budget airline Flyadeal had been in line to acquire the 737 Max, through a provisional $5.9 billion agreement for 30 Max 8s unveiled at the end of 2018 – less than three months before the worldwide grounding of the type. Flyadeal, which had also intended to take options on another 20, subsequently abandoned the Max for an equivalent agreement to acquire the rival Airbus A320neo. Saudi Arabia’s General Authority of Civil Aviation says the Max will be “allowed to return to service” within the country following its review. “Several foreign airlines operate flights to and from Saudi airports, and several flights cross [our] airspace with the same model,” says the regulator. GACA says it has co-ordinated with international aviation authorities over the modification of the aircraft, as well as training of pilot, to “ensure the highest level of safety”. Alongside the return-to-service approvals it will issue a type certification notification once the first example of the Max is introduced to the Saudi Arabian registry. Middle Eastern operators of the Max include Flydubai and Oman Air, while Qatar Airways has a small number in storage previously associated with its Air Italy operation. Kuwaiti lessor ALAFCO is also a customer.


Delta to shift all pilots to ‘active’ status by October
March 03, 2021
Delta Air Lines intends to return all its pilots to “active-flying status” by October, part of the carrier’s effort to prepare for returning to 2019 capacity by summer 2023. “We’re preparing to potentially build back to 2019 levels of flying by summer 2023. With that projection in mind, we will… begin the process to return all remaining affected pilots to active-flying status by October,” Delta chief of operations John Laughter tells employees in a 26 February memo obtained by FlightGlobal. “This decision is a significant step to position Delta for the network recovery and supports projected customer demand,” the memo adds. “We’re seeing hopeful trends as the Covid vaccine rollout progresses, and we remain cautiously optimistic about travel demand and our recovery.” Pilots being shifted to active-flying status are those Delta had previously had placed in a “no-fly” category, the airline says. Pilots in that bucket remain Delta employees and receive guaranteed minimum pay but do not pilot aircraft, Delta adds. At the end of 2020, about 1,700 of Delta pilots were in the no-fly group. The airline previously said that 400 of those pilots would be shifted to active status in January. “Delta’s teams have to build in time to train pilots on the aircraft needed to fly the planned increased flight schedule. This process takes several months,” Delta says. “This move is to help Delta prepare for growth in future flying, as we look to anticipated customer demand in 2022 and 2023.” In December 2020, Delta’s pilots approved an agreement that protected them from furlough until April 2022. The airline ended 2020 with 12,940 pilots.


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