NewsAnalysts Encouraged But Cautious On 787 TestsAs Boeing prepared to start testing a redesigned battery system aimed at preventing fires on its 787 Dreamliner, some analysts said the high-tech plane might be flying passengers again as early as May. Although the carbon-composite jet is only at the beginning of what could be a lengthy testing regimen, and still faces public hearings in April on the safety of its lithium-ion batteries, the FAA's approval of testing appeared to dispel clouds of uncertainty. Investors have realized that "the 787 isn't the end of the world," said Ken Herbert, an analyst at Imperial Capital in San Francisco.
LinkEmbraer plans G2 E-Jet launch mid-year, service entry in 2018Embraer plans to formally launch a second-generation E-Jet with both new pairs of engines and new sets of wings by mid-year, Embraer chief executive Frederico Curado says. But the Brazilian airframer rejected the possibility of accelerating the timing for entry into service, which is now pegged for 2018, or three years after the arrival of the Mitsubishi Regional Jet (MRJ90). Right now, Embraer is focused on signing deals with launch customers for the family of aircraft that will replace the Embraer 170/175 and E-190/195 jets. "We are still targeting somewhere by mid-year official launch," Curado says. "Ideally, I would like to launch this new vision of the aircraft with some launch customers." The still-unmanned second-generation E-Jet family will feature new pairs of wings for the E-170/175 and E-190/195, fly-by-wire flight controls and Pratt & Whitney PurePower PW1700G and PW1900G engines.
LinkAmerican and Republic E175 contract approved The bankruptcy court has approved American Airlines and Republic Airlines' revised capacity purchase agreement for 47 Embraer 175s on 12 March. Embraer will deliver the first 76-seat E175s in the middle of 2013 with the last coming in 2015. They will fly under the American Eagle banner. American and Republic originally proposed the 12-year agreement for 53 aircraft, split between 47 new and six used E175s, but removed the used aircraft after objections from labour groups and the mainline carrier's unsecured creditors committee.
LinkP&W still working on widebody geared turbofan despite 777X pass Pratt & Whitney will continue working on the next generation of geared turbofan engine technology despite its exclusion from the Boeing 777X re-engining competition. The early success of the PurePower PW1000G series in the narrowbody market masks a key limitation. The 3:1 ratio used by the PW1000G reduction gear is insufficent to power widebody aircraft or a next-generation single-aisle. P&W is conducting "due diligence" studies on a new reduction gear with an at least 4:1 ratio to power the next generation of its commercial aircraft, says Bob Saia, P&W vice president of next generation engines.
LinkStrikes off at Iberia after unions agree terms, pilots still in dispute Strike action at Iberia has been called off after a majority of unions accepted the proposals made by a mediator aimed at settling the dispute over restructuring cuts at the Spanish carrier. Unions, which have already carried out two 10-day stoppages, have now called off a plan strike for 18-22 March. This includes pilots' union SEPLA, even though it is still to accept the proposals. Iberia says the agreement is binding on all employees as unions representing 93% of its employees have accepted. As a result the airline has dropped its plan to cut 3,800 jobs and will under mediator Gregorio Tudela's proposals cut 3,141 positions - roughly in line with the number the airline proposed in January.
LinkLinkEmbraer 2012 profit triples to $348m Embraer's full-year net profit for 2012 more than tripled to $348 million from a year ago. The Brazilian airframer recorded a 6.46% increase in revenue to $6.18 billion for the year ended 31 December 2012. Its operating profit meanwhile almost doubled to $612 million. In its fourth quarter, Embraer posted a net profit of $123 million, a reversal from a loss of $91.8 million in the same period a year ago. Revenue for the quarter, however, dipped by 6.17% to $1.9 billion while operating profit hit $228 million. The airframer's earnings before interest and tax (EBIT) margin for 2012 was 9.9%, surpassing its forecast of between 9.0% and 9.5%.
LinkILFC Urges Boeing Not To Rush 777XUS leasing company ILFC urged Boeing not to rush into developing a replacement for its 777, a contrast to the pressure from some airlines to refresh its popular wide-body airliner. Henri Courpron, chief executive of International Lease Finance, said Boeing's 365-seat 777-300ER would work well for the industry into the next decade. "The 777-300ER is working fine and does not have much competition. It is a formidable airplane. Why break that?" Courpron said in an interview. "The market does not need a replacement any time soon." He said Boeing in any case had its hands full resolving a crisis over the grounding of its 787 Dreamliner.
LinkEU Planning To Cap Passenger CompensationStranded air passengers would not be able to claim for more than three nights of accommodation under proposals from the European Commission. Both consumer groups and airlines criticized the proposals, drawn up to take account of exceptional situations such as the eruption of Icelandic volcano Eyjafjallajokull, which stranded millions of people and cost airlines USD$1.7 billion. The ash cloud released by the volcano closed European air space for six days in April 2010, and airlines paid one and a half times their normal annual compensation in just a week. "Under current rules, air carriers must provide refreshments, meals and accommodation for an indefinite period of time, potentially threatening their financial survival," the Commission said in a paper outlining the proposal.
LinkBH Air Back In The Air After Accounts UnfrozenBosnia's only carrier BH Airlines resumed flying on Wednesday after a bank unblocked its accounts, frozen in February over outstanding debt. "Our accounts were unblocked yesterday," Goran Jovanovic, the president of BH Airlines' supervisory board, told reporters. "We re-launched the flights today." The carrier, owned by Bosnia's autonomous Muslim-Croat Federation, was grounded last week as the Bosnian arm of Austria's Hypo Alpe Adria Bank claimed some BAM7 million Bosnian marka (USD$4.7 million).
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