Category Archives: Analytics

Air crashes: IAC is no longer needed

In the near future, Russia with its partners from the EAEU (European Asian Economic Union) can create a Commission to investigate air accidents and thus withdraw from the agreement on the Interstate Aviation Committee (IAC). The Ministry of Transport, Russia, has already prepared the draft agreement and expects to start agreeing the document in October 2017. The IAC believes that the problem is in “narrowly departmental interests”, and experts fear that the quality of the new structure will be far from ideal at first.

Airports of Georgia: passenger traffic increased by almost 50% in 2017

For January-July 2017, over 2.1 million passengers passed through Georgian airports, which is by 48.4% more than during the same period in 2016, and by 81.9% more than during the first seven months of 2015.

Boeing reports strong second-quarter results; raises EPS and cash flow guidance

Boeing reports strong second-quarter results; raises EPS and cash flow guidance:

  • GAAP EPS of$2.89 and core EPS (non-GAAP)* of $2.55 on solid execution across the company
  • Strong operating cash flow of$5.0 billion; repurchased 13.6 million shares for $2.5 billion
  • Revenue of$22.7 billion reflecting 226 commercial and defense aircraft deliveries and services
  • Backlog grew to$482 billion, including $27 billion of net orders during the quarter
  • Increased guidance for GAAP EPS$0.75 and core EPS (non-GAAP)* $0.60 on improved performance and tax
  • Raised operating cash flow guidance by$1.5 billion and lowered capital expenditures guidance by $300 million

Airbus reduces its net profit by 34% in the Q2 2017

Airbus Group, the European aerospace corporation, has reduced its net profit by 34% in the Q2 2017 due to problems with the supply of aircraft. As reported in the company’s press release, its net profit amounted to EUR 895 million in April-June 2017, as compared to EUR 1.36 billion for the same period last year, according to Interfax, Russia.

New jets threaten Airbus and Boeing duopoly

The largest manufacturers of commercial aircraft, namely Boeing and Airbus, face aircraft manufacturers from China, Russia and Canada. According to some experts, the duopoly, which lasted several decades, may end. Nevertheless, most of the new aircraft have not even entered the market yet, so this is a matter of several decades rather than the next few years.

Trends of domestic flights are changing Global Aviation Market

Aviation demand is set to be fueled by the rising affluence of the middle classes in emerging markets. Consequently, the air traffic industry is forecast to grow most significantly in Africa, the Middle East and the Asia-Pacific region.

Technology boosts passenger satisfaction at bag collection and borders


2017 Passenger IT Trends Survey shows tech is making a difference at
every step of the journey.

satisfaction is higher during the airline journey when self-service
technologies are used, particularly at bag tag and collection, and passport
checkpoints. This is according to the 
2017 SITA Passenger IT Trends Survey, a global survey released today by IT provider
SITA and co-sponsored by Air Transport World. The survey shows that passengers
rate their journey very highly with an overall satisfaction rate of 8.2 of out
10 but this is boosted even further when technologies such as mobile services
and biometrics are used.

Gutlin, President, Air Travel Solutions, SITA, said: “Passengers are
increasingly comfortable with the use of technology in their everyday lives,
and they are demanding more services as they appreciate the benefits technology
can bring to their journey. Airports and airlines can take note that technology
solutions can boost passenger satisfaction every step of the way.”

In the
global air transport industry, identity checks are a vital element of the
passenger journey. SITA’s survey shows that technology, such as biometrics, can
support security while offering a better passenger experience. Automated
identity checks at passport control and boarding increases passenger

total of 37% of travelers surveyed by SITA used automated ID control on their
last flight. Of these, 55% said they had used biometrics at departure security,
33% for boarding and 12% for international arrivals. Looking forward, 57% of
passengers said they would use biometrics for their next trip.

who use biometrics are highly satisfied. In fact, they rated the experience
8.4, well above the ratings for face-to-face transactions at passport check (8)
and boarding (8.2), demonstrating passenger acceptance of this secure
technology to deliver a seamless journey.

collection is another area where technology is improving the passenger
experience. Airlines and airports are helping to relieve the anxiety of waiting
for bags to arrive by providing real-time information to passengers. On their
last flight, more than half (58%) of passengers who checked in bags received
real-time bag-collection information upon arrival.

passengers were happier than those who did not receive any information, rating
their experience 8.4 out 10. Passengers are even more satisfied when they
receive the information to their mobile devices. SITA’s survey shows that this
bumped up satisfaction levels by an extra 10%.

is also driving passenger satisfaction for baggage management earlier in the
journey as more airlines and airports offer self-bag tagging. The use of this
technology increased satisfaction to a rating of 8.4 out of 10. Nearly half
(47%) of all passengers took advantage of a self-service tagging option on
their most recent trip, which is a healthy increase from 31% in 2016. As more
self-bag tag options are made available we can expect passenger satisfaction at
this point of the journey to increase.

year’s survey also highlights that as passengers become more familiar using
technology during travel, the more likely they are to switch to newer, more
efficient platforms. They are increasingly using smarter, mobile-enabled
websites to book and check-in. Airline and airport apps, meanwhile, meet
passengers’ desire for new services to help them better manage their journey. They
want personalized information about their flight, their baggage and how to find
their gate directly on their mobile device.

appetite for new services using technology is high: three quarters (74%) of
passengers say they would definitely use flight and gate alerts pushed to their
mobile devices; 57% would use airport way-finding; and 57% would use biometrics
to smooth identification each step of the way.

Mr. Gutlin
said: “Passengers aren’t deciding anymore whether they should use technology
but which technology to use. They want to make each step of the journey as easy
as possible. Tech adoption will be driven by both context and usability. For
this reason, a clear focus on the end-users’ demands should shape the services
airlines and airports offer.”

is the 12th edition of the SITA/ATW Passenger IT Trends Survey. It was
conducted with more than 7,000 passengers from 17 countries across the Americas, Asia, Europe, the Middle East and Africa representing almost three-quarters of global
passenger traffic.

SITA specializes
in developing solutions in information and telecommunications systems, which
completely change the idea of
​​air travel.

area of
​​the company’s
professional competence covers all aspects of aviation activities – from global
communication systems and infrastructure services to information solutions in
passenger services, the introduction of the eAircraft smart aircraft concept,
baggage handling, self-check-in and other self-service for passengers, airport
management and border control services.

is an international society of aeronautical telecommunications and belongs to
the air transport industry. Currently, the organization has more than 400

all airlines and airports cooperate with SITA. The company is present in more
than 1,000 airports around the world, and its solutions for border control are
used in 30 countries. Over 2,000 employees provide round-the-clock support for
2,800 customers in 200 countries.

2015, the company’s consolidated revenue amounted US $ 1.7 billion. SITA’s
subsidiaries and joint ventures include SITAONAIR, CHAMP Cargosystems and

Source –

Boeing deal values double Airbus at Paris Air Show

During the three days of the air show in Le Bourget, Boeing received
orders and preliminary applications for 370 aircraft worth US $ 52 billion,
while Airbus – for 229 aircraft worth US $ 25 billion, RNS reports with
reference to the message published by Bloomberg.

Thus, for the first time Boeing is ahead of Airbus in terms of orders
for air shows since 2012 – it won, as potential buyers are interested in Max 10,
the number of orders and preliminary applications for which reached 336.

Airbus, in turn, emphasizes its focus on achieving the goals on the
volume of supplies and overcoming production difficulties. Over the past two
years, the Airbus orders portfolio has more than doubled and currently exceeds
6,700 aircraft.

At the air show in Farnborough last year, the volume of orders and
pre-orders for Boeing and Airbus aircraft was only $ 50 billion, which has become
their minimum level since 2010.

Buyers from Asia are especially active
on the 2017 Paris Air Show, as they thus react to the boom in travel.

However, the largest buyer includes GE Capital Aviation Services, which
ordered 100 Airbus aircraft for US $ 10.8 billion and converted its old orders
for 20 Boeing aircraft into orders for 737 Max 10. Indian SpiceJet ordered 40
Boeing aircraft (20 converted from old ones). The third-largest leasing company
in the world is Avolon, which ordered Boeing aircraft for US $ 8.4 billion.

Source –

IATA raises forecasts for airlines’ profits

The International Air Transport Association (IATA), which represents
more than 200 airlines, announced an increase in earnings forecasts for the
current year. It is expected that in 2017, the aggregate profit of global
airlines will come to US $ 31.4 billion, whereas earlier it was projected US $
29.8 billion.

In addition, IATA revised its forecasts for revenue. Thus, according to
updated estimates, the industry’s revenue will be US $ 743 billion, whereas previously
one expected US $ 736 billion.

It is worth noting that the revision of forecasts is connected with the
expectations of an increase in demand for transportation due to the forecasted
significant growth of the world economy.

Source –

Airbus reports first quarter 2017 results

Картинки по запросу airbus logo

SE (stock exchange symbol: AIR) reported first quarter 2017 results and
confirmed its guidance for the full year.

first quarter performance doesn’t offer any big surprises: we are on track for
our full year EBIT and free cash flow objectives and we took a nice uptick in
cash proceeds from the sale of Defence Electronics,” said Airbus Chief
Executive Officer Tom Enders. “New order activity was low in Q1 as predicted
but let’s not forget that our strong order book of over 6,700 commercial
aircraft supports our ongoing production ramp-up. Programme execution remains
key for all our businesses!”

Order intake(1) totalled € 3.8 billion (Q1 2016:
€ 7.2 billion) with the order book(1) valued at

1,030 billion as of 31 March 2017 (year-end 2016: € 1,060 billion) and
supporting the ramp-up plans. Net commercial aircraft orders amounted to six
aircraft (Q1 2016: 10 aircraft), with the backlog comprising 6,744 aircraft as
of 31 March. Net helicopter orders rose to 60
(Q1 2016: 51 net orders), including 10 Super Puma family helicopters and 14
H145s. Defence and Space’s order intake was impacted by the perimeter changes
from portfolio reshaping.

Revenues increased seven percent to € 13.0
billion (Q1 2016: € 12.2 billion). Commercial Aircraft’s revenues rose 13
percent, with deliveries of 136 aircraft (Q1 2016: 125 aircraft) including a
higher proportion of A350 XWBs. Helicopters’ revenues increased by 11 percent
with deliveries of 78 units (Q1 2016: 56 units). Lower revenues at Defence and
Space were mainly driven by the perimeter change impact from portfolio
reshaping but were stable on a comparable basis. The sale of the Defence
Electronics business took place in the first quarter.

EBIT Adjusted – an alternative performance measure
and key indicator capturing the underlying business margin by excluding
material charges or profits caused by movements in provisions related to
programmes, restructuring or foreign exchange impacts as well as capital
gains/losses from the disposal and acquisition of businesses – totalled  €
240 million (Q1 2016: € 498 million).

Aircraft’s EBIT Adjusted was € 281 million (Q1 2016: € 406 million), mainly
reflecting the aircraft delivery mix, transition pricing and some higher ramp-up

progress was made on the A350 XWB with 13 aircraft delivered in the quarter.
The programme is on track to reach the monthly production target of 10 aircraft
by the end of 2018. The level of outstanding work has improved in the
industrial system and supply chain bottlenecks are also beginning to improve. A
key area of focus remains recurring cost convergence, which is challenging, as
the ramp-up pace accelerates.

On the
A320neo programme, a total of 26 aircraft were delivered to 14 customers. The
first delivery of an A321neo occurred in April. Flight testing of the A319neo
is now underway.
The A320neo is exceeding expectations, however customers are experiencing a
number of in-service issues which need to be resolved, in particular with the
Pratt & Whitney GTF engine. The ramp-up will again be back-loaded this year
to reflect the necessary time for the implementation of product improvements.

higher deliveries and revenues, Helicopters’ EBIT Adjusted totalled € -2
million (Q1 2016: € 33 million). This reflected an unfavourable mix and lower
commercial flight hours in services as well as impacts associated with the
partial H225 grounding. The Company continues to work with the investigation
authorities and customers to resume flights and services in all regions.

and Space’s EBIT Adjusted declined to € 63 million (Q1 2016: € 107 million),
mainly reflecting the perimeter change with the underlying business performing
as expected.

A400Ms were delivered compared to two aircraft in the first quarter of 2016. Discussions
were entered into with customers as planned. Challenges remain on meeting
contractual capabilities, securing sufficient export orders in time, cost
reduction and commercial exposure, which could be significant.

Group self-financed R&D expenses were
stable at € 548 million (Q1 2016: € 547 million).

EBIT (reported) of € 852 million (Q1
2016: € 362 million) included Adjustments totalling a net
€ +612 million.
These Adjustments comprised:

  • A net capital gain of € 560 million from
    the divestment of the Defence Electronics business;
  • A positive impact of € 55 million related
    to the dollar pre-delivery payment mismatch and balance sheet revaluation;
  • A net negative impact of € 3 million
    related to other portfolio changes at Defence and Space.

Net income(2) increased to € 608 million (Q1
2016: € 399 million) after the EBIT Adjustments with earnings per shareof € 0.79 (Q1 2016: € 0.51).  EPS and net income included a significant
negative impact mainly from the revaluation of financial instruments. The
finance result was        € -206 million (Q1
2016: € 193 million).

Free cash flow before M&A and customer financing was
€ -1,269 million (Q1 2016:  € -2,731 million), reflecting the strong focus
on working capital amid the production ramp-up and back-loaded deliveries. Free cash flowof € -1,116 million (Q1 2016: € -3,131 million) included net proceeds of around
€ 600 million from the Defence Electronics disposal.
The net cash
on 31 March 2017 was € 9.8 billion (year-end 2016: €
11.1 billion) with a gross cash position of € 20.3 billion (year-end 2016: €
21.6 billion).


As the
basis for its 2017 guidance, Airbus expects the world economy and air traffic
to grow in line with prevailing independent forecasts, which assume no major

2017 earnings and free cash flow guidance is based on a constant perimeter:

  • Airbus expects to deliver more than 700
    commercial aircraft.
  • Before M&A, Airbus expects
    mid-single-digit percentage growth in EBIT Adjusted and EPS Adjusted
    compared to 2016.
  • Free Cash Flow is expected to be similar
    to 2016 before M&A and Customer Financing.

perimeter change in Defence and Space is expected to reduce EBIT Adjusted and
Free Cash Flow before M&A and Customer Financing by around € 150 million
and EPS Adjusted by around 14 cents.

About Airbus

Airbus is a global leader in aeronautics, space and related services. In
2016, it generated revenues of € 67 billion and employed a workforce of around
134,000. Airbus offers the most comprehensive range of passenger airliners from
100 to more than 600 seats. Airbus is also a European leader providing tanker,
combat, transport and mission aircraft, as well as Europe’s
number one space enterprise and the world’s second largest space business. In
helicopters, Airbus provides the most efficient civil and military rotorcraft
solutions worldwide.

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