Market Intelligence: North and Central Asia
Aircraft Manufacturer Airbus Provides 2024 Guidance Update
- A320 ramp-up trajectory adjusted to reflect specific supply chain challenges in a degraded operating environment; around 770 commercial aircraft deliveries now expected in 2024; target production rate of 75 A320 Family aircraft a month maintained and now expected to be reached in 2027
- 2024 guidance updated
Amsterdam, 24 June 2024 – Airbus SE is providing a market update to report on new developments related to its space activities and commercial aircraft business, the impact of which is leading the Company to update its 2024 guidance.
In the first half of 2024, the Space Systems management team conducted an extensive technical review of all programmes, identifying further commercial and technical challenges. On that basis, the Company has decided to record charges of around € 0.9bn in the H1 2024 accounts. These are mainly related to updated assumptions on schedules, workload, sourcing, risks and costs over the lifetime of certain telecommunications, navigation and observation programmes.
In commercial aircraft, Airbus is facing persistent specific supply chain issues mainly in engines, aerostructures and cabin equipment. The Company now intends to deliver around 770 commercial aircraft in 2024 and continues to ramp up towards a rate of 75 A320 Family aircraft per month, which is now expected in 2027.
Accordingly, Airbus is updating its 2024 guidance.
As the basis for its updated 2024 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services.
The Company’s 2024 guidance is before M&A.
On that basis, in 2024, the Company now targets to achieve:
- Around 770 commercial aircraft deliveries;
- EBIT Adjusted of around € 5.5 billion;
- Free Cash Flow before Customer Financing of around € 3.5 billion.
The Company’s half-year results will be disclosed on 30 July 2024.
Source: Airbus
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Training Aircraft Manufacturer, Cirrus Aircraft, Releases Service Advisory on the Transition to Unleaded Fuel and Use of Non-Cirrus Approved Fuel in SR Series Aircraft
Cirrus Aircraft released a serviced advisory on June 18, 2024 with a subject “Transition to Unleaded Fuel and Use of Non-Cirrus Approved Fuel in SR Series Aircraft.”
See Cirrus’ advisory below:
“Cirrus is dedicated to proactively addressing the evolving landscape of sustainability regulations, particularly the shift away from leaded aviation fuels. We continue to actively support industry efforts to develop, evaluate, and advance new fuels while supporting a safe industry transition to a future unleaded fuel environment.
These efforts include working directly with industry associations and all stakeholders including AOPA, GAMA, the FAA, and the FAA-Industry EAGLE program through the PAFI certification program. As of June 2024, EAGLE is actively pursuing three potentially viable alternatives/replacements for 100LL: GAMI G100UL, LyondellBasell/VP Racing UL100E, and Swift 100R. Cirrus is dedicated to supporting all major fuel companies in their pursuit to bring alternative high-octane fuels to market.
As part of our proactive participation in the unleaded fuel initiative, Cirrus has been collaborating with potential fuel producers conducting materials compatibility and on-aircraft fuel performance testing for over a decade.
Cirrus is engaged in a comprehensive testing and evaluation program of the GAMI G100UL fuel. Working in coordination with GAMI, our key powerplant partners (Continental and Lycoming), and the FAA during this process, the goal is to ensure operational safety of both the powerplant and airframe fuel systems. While some aspects of the initial Cirrus testing of the GAMI G100UL fuel are encouraging, other areas, including materials compatibility, remain inconclusive. At this time, Cirrus does not approve the use of GAMI G100UL fuel in Cirrus SR Series airplanes. Additionally, Cirrus currently does not warrant or represent in any way an operator’s use of the GAMI G100UL fuel in SR Series airplanes.
Per Continental and Lycoming, only approved fuels may be used for an engine to be covered by warranty. As the GAMI G100UL fuel is a non-approved fuel per Continental and Lycoming, engines known to have run this fuel may not be covered by the current OEM engine warranty. For specific details, please refer to the respective Continental and Lycoming engine warranty documents.
Shell recently announced that 100VLL will be shipping to airports in Europe beginning in April 2024. Cirrus confirms this fuel can be used in all Cirrus SR Series airplanes as it complies with the ASTM D910 standard specification for leaded aviation gasoline. Please refer to FAA SAIB NE-11-55 “Grade 100VLL Aviation Gasoline,” for additional details.
The continued safe operation of all Cirrus aircraft around the world remains our top priority. As progress continues, we will provide updates as soon as they are available. We look forward to ensuring a safe and smooth transition to unleaded fuel for all Cirrus SR Series owners.”
Source: Cirrus
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Global Pilot Training Solution Provider, CAE, Shares FY24 Recap Video
CAE shares the following FY24’s remarkable achievements through the video below:
- CAE’s SkyAlyne joint venture awarded largest contract in CAE’s history for Canada’s Future Aircrew Training Program (FAct)
- Inauguration of 1st US West Coast business aviation training centre in Nevada
- Announcing Vienna as the location for business aviation training centre in Central Europe
- Announcing full-flight simulator and pilot training program to commence at Singapore CAE Flight Training Centre
- Agreement for Integration of Flight Operations Solutions Software at Air India
- Awarded subcontract for U.S. Army Flight School Training Support Services
- Awarded Bell’s contract to support U.S. Army Future Long Range Assault Aircraft Program
- CAE awarded rapid prototype, enhancing mission readiness of U.S. Army
- First Falcon 6X training completed at CAE Burgess Hill
- Boeing and CAE to collaborate on pilot training to enhance aviation safety
- Release of CAE Aviation Talent Forecast
- Adding USAF Rotary-Wing, Introductory Training at CAE Dothan Training Centre
- CAE to support US Army high altitude platform training with Bombardier Global 6000/6500
- Long-term agreement with Akasa Air for Boeing 737MAX pilot training
- CAE GmbH delivers NH90 Full Mission Training Centre to the German Navy
- Embraer and CAE to double Phenom 300 pilot training capacity
- SkyWest set to deploy CAE’s next-generation Flight Operations Solutions
Source: CAE
Photo Credit: CAE
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Flight School Resource and Training Timeline Forecasting Tool, Aeroplanned, Releases 2nd ‘Excellence in Pilot-Training Planning’ Video
Aeroplanned, the pioneering resource planning platform for flight training, has launched a new video series to showcase its offering to the different pilot training industry stakeholders.
“Aeroplanned is relatively new and unique in the industry, which can make it challenging to explain its full scope. Our key focus is to seamlessly connect the pilot training pipeline, ensuring smooth student progress and optimal outcomes for all involved. But what does that actually look like?
We thought it would be good to showcase some of our favourite features and how they tackle significant issues within the flight training industry.
We believe every student needs a tailored plan moving forward. No matter the type of training, if you want the best outcomes for your flight school – optimised resources, happy students, correctly-booked flight tests, accurate hiring and upgrade plans, predictable revenue (the list goes on!) – every student needs a plan.
For some students, on-time completion is crucial. In this video, we’ll show how easy it is to use our software to resolve delays and ensure students finish on-time.
Why is this important?
- For airline cadets with booked slots in full flight simulators
- For students moving between bases for streamlined transitions
- For students with hard end dates due to financial, travel, immigration, or job commitments
- Or simply to deliver training to the agreed contract and keep the flight school running like clockwork
Aeroplanned makes it simple to resolve delays and ensure on-time completion, creating a win-win situation for everyone involved.”
Source: Aeroplanned
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Flight School Resource and Training Timeline Forecasting Tool, Aeroplanned, Launches ‘Excellence in Pilot-Training Planning’ Video Series
Aeroplanned, the pioneering resource planning platform for flight training, has launched a new video series to showcase its offering to the different pilot training industry stakeholders.
“Aeroplanned is relatively new and unique in the industry, which can make it challenging to explain its full scope. Our key focus is to seamlessly connect the pilot training pipeline, ensuring smooth student progress and optimal outcomes for all involved. But what does that actually look like?
We thought it would be good to showcase some of our favourite features and how they tackle significant issues within the flight training industry.
First up: Identifying delayed students (with an intro to our new ‘Cohorts’ feature!)
In the flight training world, delays are all too common. Whether due to variable weather, cancellations, resource bottlenecks, or repeated lessons, keeping student pilots on track is complex. That’s where Aeroplanned comes in. Our new ‘Cohorts’ feature provides a comprehensive view of student progress, enabling proactive problem-solving to keep everyone on schedule.
Our timelines offer both a high-level overview and detailed information. This ensures that flight schools, their customers, and partner airlines have the clarity needed to identify delays quickly and efficiently.
Why is this visibility so valuable?
- For Flight Schools: Streamlined operations and enhanced student management.
- For Students: Clear, transparent progress tracking.
- For Partner Airlines: Confidence in training timelines and cadet readiness.
With the issues identified, next up in our features review we’ll show you some of our effective tools to manage these delays and optimise resource utilisation.”
Source: Aeroplanned
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Airbus Announces Commercial Aircraft Orders and Deliveries for the Month of May 2024
In May 2024, European aircraft manufacturer Airbus:
- Delivered 53 aircraft to 34 customers
- 1 A220-100
- 5 A220-300
- 19 A320neo
- 22 A321neo
- 2 A330-900
- 3 A350-900
- 1 A350-1000
- Secured 27 orders
- 7 A321neo
- 20 A330-900
- Year to date Airbus has delivered 256 aircraft to 58 customers.
AFM Team Note – kindly contact us for a detailed excel breakdown of orders and deliveries by airline.
Source: Airbus
Photo Credit: Airbus
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Global Pilot Training Solution Provider and Middle Eastern Airline Unveil New White Paper on Pilot Continuous Professional Development
In a joint effort to enhance aviation safety, global pilot training solution provider CAE and Dubai, United Arab Emirates based airline Emirates published a new White Paper focusing on Continuous Professional Development (CPD) for pilots.
The new White Paper delves into the evolving landscape of pilot training, stressing the importance of CPD as technological advancements shift the pilot’s role from manual control to system monitoring. This transition necessitates new competencies, particularly in Non-Technical Skills (NTS), and highlights the need for innovative learning methodologies.
Traditionally, pilot training has centered on meeting and maintaining standards, a framework seen as more advantageous for organizations than for individual pilots. The White Paper advocates for a paradigm shift towards Continuous Recurrent Training (CRT), promoting flexible and personalized learning that can drive significant advancements in pilot training.
A key message of the White Paper is the movement from compliance-based to competence-based training, emphasizing continuous development. This approach involves setting individualized training goals and focusing on practical competence rather than mere knowledge absorption.
Drawing inspiration from the Institution of Engineering and Technology (IET), the White Paper outlines a CPD process encompassing planning, executing, recording, and reviewing learning activities. It also highlights essential enablers for effective CPD, such as maintaining curiosity, dedicating regular time for learning, seeking feedback, reflecting on experiences, and embracing new challenges.
You can download the white paper here.
Source: CAE & Emirates
Photo Credit: CAE & Emirates
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Kazakhstan Airline Receives Award for Pilot Training Programs by American Chamber of Commerce
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World’s Largest ACMI Provider and Aviation Conglomerate Avia Solutions Group Records 26% Revenue Growth in Q1 2024
Avia Solutions Group, the world’s largest ACMI provider (Aircraft, Crew, Maintenance, and Insurance) services and owner of global pilot training group BAA Training, announced its financial performance results for Q1 2024. The Group’s revenue grew by 26%, reaching €508.8 million. The growth was primarily driven by a significant increase in passenger flight volumes – the Group’s revenue from passenger aircraft ACMI services grew 2.3-fold, reaching €216 million.
The Group’s EBITDA stood at €11.9 million, while its net losses comprised €97.5 million, meeting the overall expectations for Q1. These results were mostly due to investment into fleet capacity and crew, in preparation for a record-breaking summer season, as well as to strategic expansion in new markets.
During the first quarter of this year, the Group expanded its fleet with 13 new aircraft, bringing the total to 171 passenger and 42 cargo aircraft. Even though, in the aviation industry, the first quarter of any given year is typically considered not as profitable, the Group’s entire fleet, which today encompasses 213 aircraft, has already been leased to major European and international airlines, including Lufthansa Group, Turkish Airlines, Wizz Air, TUI, IndiGo, among others.
“We are now fully prepared for the summer season, which we expect to break all previous records. The Group’s aviation services infrastructure and global scale give us a significant competitive advantage and the status of industry leaders,” said Jonas Janukenas, CEO of Avia Solutions Group.
Avia Solutions Group is consistently implementing its expansion strategy in Asia, Asia-Pacific, and South America, which enables it to efficiently manage seasonality in Europe by shifting aircraft from one region to another. Early in Q1 2024, the Group acquired the Australian airline Skytrans, and is planning to establish ACMI airlines in Brazil, the Philippines, Thailand, and Malaysia later this year.
Based in Ireland, Avia Solutions Group operates in 68 countries around the world, and has offices in Lithuania, New York, Dubai, Dublin, and other cities around the globe. The Group consists of 100+ companies providing a wide range of aviation services like aircraft maintenance and repair (MRO), pilot and crew training, ground handling, and more. The Group’s team encompasses 12,000 highly qualified aviation professionals.
Source: Avia Solutions Group