18 Sep 2017

USA Aviation Industry Newsletter 18 September

American looking at options for A350 order American Airlines is evaluating the future of its Airbus A350-900 commitments, as it continues to deal with the varied orderbook it gained through its merger with US Airways four years ago. The Fort Worth-based carrier's order for 22 A350s is on the small side for a single aircraft type in its fleet, says Doug Parker, chairman and chief executive of American, on the sidelines of the Airlines for America (A4A) Summit in Washington DC. American-LATAM JV moves closer to approval in Brazil The general superintendence of Brazilian regulatory agency Conselho Administrativo de Defesa Econômica (CADE) has recommended that CADE’s administrative tribunal approve the American Airlines-LATAM Airlines Group joint venture (JV) without conditions. The proposed antitrust-immunized American-LATAM JV has already gained approval from regulatory authorities in Uruguay and Colombia. It still needs US Department of Transportation (DOT) approval. CADE’s administrative tribunal has until Sept. 29 to decide whether further review in Brazil is needed. Atlas Air Worldwide Places 747-400 Freighter With DHL Global Forwarding Atlas Air announced 14 September the ACMI placement of a 747-400 freighter with DHL Global Forwarding, the world’s largest airfreight forwarding company and a division of the Deutsche Post DHL Group. The 747-400F will be operated by Atlas Air, Inc. and will fly on behalf of DHL Global Forwarding through an aircraft, crew, maintenance and insurance agreement. The new service will commence this month and will serve routes between the United States, Europe, and Asia. Boeing Opens Asia-Pacific’s First 737 Max Sim in Singapore Seeing strong demand for the 737 Max in the Asia Pacific region, Boeing has commissioned its first 737 Max 8 full flight simulator at the Boeing Training & Professional Services in Singapore. Certified by the Civil Aviation Authority of Singapore and the European Aviation Safety Agency, the new equipment joins two 737NG machines, two 787-8 units and a 777-300 simulator already in service. Boeing has also revealed that it plans to install a 787-9 simulator in time for operation by November this year. Brazil approves $100 million American Airlines maintenance center Brazil’s government has approved a plan by American Airlines Group Inc to build a maintenance center at Sao Paulo’s Guarulhos airport, a $100 million investment that will help the U.S. carrier consolidate its South American operations. Icelandair Announces Service from Dallas Fort Worth International Dallas Fort Worth (DFW) International Airport will have a new choice for travel to Iceland and beyond when Icelandair begins new service to Reykjavik's Keflavik International (KEF) on May 30, 2018. Icelandair will serve DFW to KEF four times per week with a Boeing 757-200 aircraft. "DFW Airport is pleased to provide our customers with additional choices when they fly across the Atlantic," said Sean Donohue, CEO for DFW International Airport. "Icelandair will offer our customers a full-service option whether traveling to Reykjavik, Scandinavia or some of the most popular destinations in Europe." Traffic, Widebody Demand Back Boeing’s 787 Rate Bump The combination of strong traffic demand and a projected high rate of widebody replacements in the coming years cemented Boeing's confidence in the move to boost its 787 production rates to 14 per month, the company’s top executive said. Speaking at a recent Morgan Stanley analyst conference, Boeing President and CEO Dennis Muilenburg confirmed that the long-planned 787 production-rate increase from 12 to 14 is a go. “That's been our assumption, but now [we're] confirming that previous assumption,” he said. “We are going to 14 a month in 2019.” U.S. Airlines Brace for Impact from Continued Hurricane Disruptions U.S. airlines are reeling from the impact of one of the worst hurricane seasons in recent memory – and it’s not over yet, observers warn. With more than 14,000 flights cancelled due to Hurricane Irma, plus the damage already done by Hurricane Harvey, some carriers are already dialing down their expectations for the rest of 2017.  Airline analysts are warning that consumers could pay higher ticket prices as airlines pass along a recent rise in fuel costs. According to the New York investment firm Cowen & Co., the impact of Irma on the six largest U.S. airlines in the region could total $139 million. Acumen Aviation © 18 September All Rights Reserved.