to 16 European destinations.
» Goodrich signed a $10 billion, 20-year contract with
Airbus to provide nacelle and
thrust reverser systems for all
variants of the A350 XWB.
» Boeing Commercial Aviation
Services and Goodrich
Aerostructures Service Center
Europe in Prestwick reached
an agreement to perform thrust
reverser component MRO on
737NGs and 777s.
» Thales said it will supply the
“majority” of critical avionics
on up to 90 A320s ordered by
Air One. Deal includes Thales’
Topflight Line of avionics
and an LCD head-up display.
Aircraft deliveries are scheduled through 2008.
» SR Technics was selected
by Virgin Atlantic Airways
to reconfigure five 747-400
interiors. SRT opened a line
maintenance station at Paris
Orly with Air Caraibes as the
» Lufthansa Technik signed
a five-year Total Technical
Support contract with French
startup L’Avion (formerly
Elysair) for its 757-200. It
began operating all-business-class flights from Paris Orly to
Newark last month.
» Austrian Airlines Group
established Austrian Airlines
Technik Marketing GmbH to
promote third-party MRO work
for AUA’s maintenance division.
» KLM Engineering &
Maintenance was selected by
TNT Airways to work on its two
747-400ER freighters, including engineering, maintenance
control and component services as well as worldwide line
and airframe maintenance.
» Malev Hungarian Airlines
acquired a Mechtronix FFS X
Non Zero Flight Time simulator
for recurrent pilot training at
» Eurocontrol announced that
the Maastricht Upper Area
Control Center has been certi-
fied formally as compliant with
Single European Sky require-
ments for the provision of air
navigation services. MUAC
provides ATC in the upper
airspace of the Netherlands,
Belgium, Luxembourg and
» Aviareps will represent Air
Canada in Russia.
» Star Alliance expelled Varig
from its ranks effective Jan.
31. The alliance said the decision was “prompted” by a
reduction in flying and services
by Varig. Star becomes the
only one of the three major airline groupings to lack a member based in Latin America.
» Brazilian air transport industry ended 2006 with a 12.3%
increase in domestic passenger
boardings compared to 2005
despite the downsizing at Varig
and the ATC crisis that affected operations in November and
December. Preliminary results
show this is the second-highest
year-over-year increase since
2001 following the 19.4% rise
in 2005. TAM had a 47.8%
market share, up 6. 5 points
compared to 2005, while Gol
posted a 33.9% share, up 8
points. Varig’s share declined
to 10.2%. On the international
front, Brazil saw a 30.2% fall
in boardings owing to Varig’s
» LAN Airlines will trim its
domestic economy class
fares by 5% but will add a
service fee for ticket sales at
its agencies and sales points
ranging from $5 for travel in
Chile to $25 for travel within
South America and $40 for
international long-haul tickets.
No fees are to be charged for
LAN board scheduled an
meeting for Jan. 26 to approve
a capital increase of 7. 5 million common shares (
equivalent to 1. 5 million American
Depository Shares). Part of the
proceeds will be used for a
stock option plan.
» Royal Jordanian confirmed
that the government will
proceed with the announced
privatization of the carrier
this year, selling 74% to the
private sector and retaining
the balance. Shares to be sold
to non-Jordanian investors
will not exceed 49% in order
to maintain traffic rights (see
article, p. 31).
» Sama, a Saudi Arabian low-fare startup, was granted an
operating license by the civil
aviation authority. The airline
plans to offer 737-300 services throughout the country and
eventually to destinations in
the Middle East. It has no plan
to operate long-haul routes.
“Our priority is to serve as
many cities in Saudi Arabia as
we can with up to 35 aircraft
1. Includes Lufthansa and LH Regional 2. Includes SAS, Spanair, Wideroe,
Blue1 and AirBaltic. Source: Airline reports
AFKLM 16.11 3. 3 20. 29 3. 8 79.4 -0.4
BA Group 9. 12 -0.5 12. 33 -0.1 73. 9 -0.3
Finnair 1. 56 9. 1 2.08 7. 3 75.0 1. 2
Iberia 4. 28 11. 6 5. 45 3. 8 78.5 5. 5
Lufthansa 1 8. 28 7. 4 11. 40 5. 3 72. 6 1. 4
SAS Group 2 2. 58 - 2. 2 3.90 -0.5 66. 1 - 1. 2
European Airline Traffic December 2006
» Singapore Aircraft Leasing Enterprise
was acquired in late December by Bank of
China for $965 million in cash. Prior to the
purchase, SALE was controlled by Singapore
Airlines and German Bank West LB, each
with 35.5%. Smaller shareholders include
Temasek Holdings and Government of
Singapore Investment Corp. The bank said
the purchase is part of its “overall corporate
strategy in expanding its scope of diverse
financial services and increasing its diversification into noninterest income.” SALE
CEO Robert Martin will continue to direct
the firm, while BOC will appoint directors to
the board. The leasing company said it will
maintain its Singapore headquarters and
operate as a standalone unit within BOC.
» WestJet finalized a term sheet with SALE
to lease two 737-700s for delivery in July
and August 2009.
» American Airlines parent AMR Corp.
announced that its 4.5% Senior Convertible
Notes due 2024 have become convertible
into shares of AMR common stock.
» Tiger Airways secured a $100 million loan
facility to finance pre-delivery deposits for
eight new A320s on order. The facility was
arranged and underwritten by BNP Paribas.
Deliveries are scheduled for 2008-10.
» Brussels Airlines signed a letter of intent
with AerCap to add a fourth A330-300 to
its long-haul fleet. The aircraft belonged to
Air Madrid, which suspended operations last
» Hawaiian Airlines finalized an agreement
with AWAS Aviation Services that includes
the purchase of three leased 767-300ERs.
LEASING & FINANCE BRIEFS
MIDDLE EAST Report