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Safety is our top priority. Our test pilots, following an occurrence last week, followed standard procedures and returned to base uneventfully. Bombardier and GE have determined that the root cause of last week’s reported occurrence was an isolated event.
The Global 7000 aircraft program’s flight and ground test campaigns continue on track for entry-into-service in the second half of 2018 and GE’s Passport engine received its Federal Aviation Association (FAA) type certification in early 2016.
The first six customer aircraft are now in production and final assembly line activities are ramping up.
A Canadian contractor has seized a Dash 8-400, msn 4559, that was due to have been delivered to Air Tanzania (TC, Dar-es-Salaam) last month.
The state-owned carrier is expecting three Q400s (of which two have already been delivered) and two CS300s from Bombardier (BBA, Montréal Trudeau) along with one B787-8 from Boeing (BOE, Chicago O’Hare) as part of its fleet renewal plans. All aircraft are procured by the Tanzanian state via its TGF – Tanzanian Government Flight leasing vehicle.
According to The Citizen newspaper, Tanzanian Opposition Member of Parliament (MP) for Singida East, Tundu Lissu, told a press conference last week that Stirling Civil Engineering secured the seizure order as part of a 2010 International Court of Arbitration verdict in its favour.
Lissu said the case came after the Tanzanian government reneged on a USD25 million contract to build the Wazo Hill-Bagamoyo Road. When it refused to pay compensation, Stirling Civil Engineering took the matter to the International Court of Arbitration which awarded it USD25 million in damages with an 8% per annum interest accrual penalty. As it stands, the total debt owed by the government to the jilted contractor stands at TZS83 billion Tanzanian shilling (USD38.7 million), the MP said.
Aside from the turboprop, Stirling Civil Engineering has also sought to attach Tanzanian government property in Canada, France, Netherlands, Belgium, the United Kingdom, and Uganda.
“To start with, they took the Bombardier Q400 which was expected in the country last month, and the same would be done to our much-awaited plane, the B787-8, if the debt won’t be paid,” he said.
Tanzanian Minister for Foreign Affairs and East African Cooperation, Dr. Augustine Mahiga, reportedly travelled to Canada to negotiate a settlement with the construction firm over the aircraft’s release. Under the proposed settlement plan, government will make a USD12.5 million down payment on the total debt of USD38.7 million with the remainder to be paid in installments.
The government has since confirmed the ordeal while expressing confidence that the stalemate will be resolved and that the aircraft will be delivered as planned.
Bombardier Commercial Aircraft congratulates Shree Airlines on the launch of a new regional jet service with CRJ Series aircraft.
“We are pleased to welcome Shree Airlines to the worldwide family of CRJ Series aircraft operators,” said David Speirs, Vice President, Asset Management, Bombardier Commercial Aircraft. “The CRJ Series aircraft have been instrumental in revolutionizing regional route networks, and we are confident that Shree Airlines will achieve much success as it launches fixed-wing operations in the regions of Nepal with two CRJ200 aircraft and one CRJ700 aircraft.” The Nepali carrier commenced service with its first CRJ200 aircraft on August 11, 2017.
“We are continuously looking for optimal solutions to address the increasing transportation demands in Nepal, and the launch of our new regional jet service with the CRJ200 and CRJ700 aircraft represents a significant milestone in our growth journey.” said Anil Manandhar, Corporate Manager, Shree Airlines. “With its proven efficiency and reliability, the CRJ Series aircraft will allow us to improve domestic transportation, and will be a key asset in helping Shree Airlines expands its operations to the regional markets in the future.”
Shree Airlines have acquired all three CRJ Series aircraft from a third party. The CRJ Series regional jets share commonality benefits that provide flexibility to operators and allow them to optimize their fleets to meet specific market demands. The CRJ Series aircraft family includes over 120 owners and operators flying people in over 90 countries, and the worldwide fleet has logged 50 million flight hours.
About Shree Airlines
Shree Airlines is the largest operator of helicopters in Nepal. It owns and operates a mixed fleet of helicopters in Nepal and in Africa from time to time for UN Peace Keeping Operations as well as World Food Program. In operations since 1999, Shree is a leader in Nepalese aviation sector. It has been serving the people of Nepal living in some of the remotest and inaccessible parts of Nepal.
Its expansion into fixed-wing operations will complement its rotor-wing services and allow it to serve a larger part of the population.
- The Challenger 350 aircraft is the best-selling business jet platform of the last decade
- Designed with a no-compromise approach, the Challenger 350 aircraft effortlessly blends powerful performance and sleek styling to deliver a smooth ride at the lowest direct operating costs in its category
- Bombardier Business Aircraft is the market leader in deliveries and has the largest fleet, excluding very light jets, in Latin America
Bombardier Business Aircraft announced today it delivered the first Challenger 350 aircraft to be based in Argentina, joining Bombardier’s fleet of 122 Challenger aircraft in Latin America. Bombardier’s business jet fleet in Latin America is comprised of approximately 685 aircraft in service – spanning Bombardier’s full product portfolio of Learjet, Challenger and Global aircraft.
“This first Bombardier Challenger 350 jet delivery to an Argentinian customer confirms the aircraft’s leadership in Latin America,” said Stephane Leroy, Vice President, Sales, Latin America, Bombardier Business Aircraft. “Paired with impressive high-performance attributes, the Challenger 350 aircraft is the right choice for customers in Argentina seeking to access challenging airfields, climb faster, and cruise efficiently while enjoying a smooth ride.”
Designed with a no-compromise approach, the Challenger 350 aircraft effortlessly blends powerful performance and sleek styling to deliver an unrivalled private jet experience like no other. Equipped with Bombardier’s exclusive HD Cabin Management System, it provides an unparalleled audio experience with crystal-clear sound through integrated sidewall speakers – exclusive to its class, as well as an easy connection to personal devices to view videos and movies on the largest HD monitors in the segment.
Latin America is the third largest market for business aviation deliveries, with Argentina, Brazil, Mexico and Venezuela making up over 80 per cent of the regional fleet.
As part of its commitment to customers in Latin America, Bombardier has a Regional Support Office (RSO) in Toluca, Mexico, staffed by an RSO Manager and Field Service Representatives, as well as a Miami parts depot to dispatch parts faster. Bombardier’s world-renowned service and maintenance network is equipped to support Bombardier Learjet, Challenger and Global business aircraft and is connected to Bombardier Business Aircraft’s 24/7 Customer Response Centre and world-class Customer Support Team.
- The class-defining Learjet 75 aircraft continues to set the standard by bringing large jet features to a light jet platform
- Learjet 75 is the only business jet in its class to feature an eight-seat double-club configuration and a flat floor throughout the cabin for a smooth ride
and the ultimate in comfort
- Recently celebrated the delivery of the 3,000thLearjet aircraft
Bombardier Business Aircraft announced today that it delivered its first Learjet 75 aircraft to a Brazilian customer. The aircraft joins Bombardier’s business jet fleet of 685 Learjet, Challenger and Global aircraft in Latin America.
“Learjet aircraft are iconic, rooted in deep pride and based on a history of ingenuity. We are proud a Brazilian customer selected the Learjet 75 for its class-leading performance, smooth ride and most private and quiet cabin,” said Stephane Leroy, Vice President, Sales, Latin America, Bombardier Business Aircraft. “The Learjet 75 aircraft is the only business jet in its class to feature a pocket door for reduced noise levels.”
Latin America is the third largest market for business aviation deliveries, with Brazil, Argentina, Mexico and Venezuela making up over 80 per cent of the regional fleet. With over 510 Learjet aircraft in Latin America, Learjet customers can enjoy the quietest and most private cabin in the category.
Bombardier introduced a new level of passenger comfort in the Light jet category in 2016 with the introduction of a Learjet 75 aircraft featuring an innovative pocket door design. The pocket door divides the cabin from the entry area and reduces noise levels inside the cabin by up to eight decibels*, while creating a distinct private living space for passengers.
Standing the test of time, the Learjet 75 aircraft continues to set the standard by bringing large jet features to the most trusted light jet platform. In June 2017, Bombardier Business Aircraft celebrated a historic milestone in business aviation – the delivery of the 3,000th Bombardier Learjet business jet manufactured. The aircraft was also the 100th Learjet 75 jet to be delivered.
Calgary, Alberta – August 10, 2017 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”), per the Boeing press release dated July 6, 2017, will provide the Automated Flight Information Reporting System (AFIRSTM) product and management platform (UpTimeTM Cloud) to Boeing as part of their upcoming flight test program on a FedEx B777 aircraft. FLYHT will participate in the portion of the ecoDemonstrator Program designed to collect data and produce test reports that are necessary to demonstrate Autonomous Distress Tracking and the Timely Recovery of Flight Data in order to drive industry standardization and requirements. FLYHT’s portion of the project was initiated in April 2017 and is expected to be complete in 2018.
The Boeing ecoDemonstrator Program plays a key role in the company’s environmental strategy by using flight testing to accelerate new technologies that can reduce emissions and noise, improve airlines’ gate-to-gate efficiency and help meet other environmental goals. In 2018 for six weeks, Boeing and FedEx Express will work together to flight-test more than 30 technologies aboard a FedEx-owned 777 Freighter. The two companies are committed to reduction of the environmental impact of their products and in advancing technology that will improve performance.
FLYHT will provide equipment, software, a Supplemental Type Certificate and support to Boeing for this evaluation. This program will test many features including enhancements to AFIRS that will allow the product to stream flight data over different satellite systems, including Iridium and an Inmarsat SwiftBroadband connection. The flight data information streamed during the test flights will produce real-time animation, demonstrating improved situational awareness of the cockpit during these events. Also, the flight test program will also stream real-time cockpit audio – demonstrating that all the “black box” data can be captured this way.
“FLYHT is very excited to work directly with Boeing and FedEx to validate our product’s unique value proposition,” remarked Tom Schmutz, FLYHT’s Chief Executive Officer. “We have a fantastic solution for Autonomous Distress Tracking and Timely Recovery of Flight Data and look forward to testing our newly expanded solution with the Boeing engineering team.”
The International Civil Aviation Organization (ICAO) council adopted new provisions to Annex 6 of the Chicago Convention (Operation of Aircraft) in March of 2016 that will take effect between now and 2021. These amendments require aircraft to carry Autonomous Distress Tracking devices which can autonomously transmit location information at least once every minute in distress circumstances. Aircraft are also required to be equipped with a means to have flight recorder data recovered and made available in a timely manner.
The ICAO council established performance based provisions which will allow existing and emerging technologies to be used to meet these requirements, so airframers will be required to choose how they will comply. FLYHT has commercially fielded products that provide Autonomous Distress Tracking and flight data recorder streaming, which it first deployed in April 2014 with First Air, a Canadian Airline Operator.
Airline increases traffic by 6.8 per cent and flies a record number of guests
CALGARY, Aug 10, 2017 /CNW/ – WestJet today announced July 2017 traffic results with a load factor of 85.6 per cent, an increase of 0.4 percentage points year over year. Revenue passenger miles (RPMs), or traffic, increased 6.8 per cent year over year, and capacity, measured in available seat miles (ASMs), grew 6.4 per cent over the same period. The airline flew a record 2.2 million guests in July, a year-over-year increase of 9.1 per cent or approximately 185,000 additional guests.
“We are very pleased with our continued strong traffic growth as we achieved a record July load factor, flew a record 2.2 million guests and set an all-time single day high by flying 76,985 guests on July 27th,” said WestJet President and CEO Gregg Saretsky. “I want to thank our almost 13,000 WestJetters for their dedication to providing a remarkable guest experience through this busy summer travel season.”
July 2017 traffic results
In July, WestJet announced its 2017-2018 winter schedule that includes:
- New non-stop weekly service from Calgary to Belize City, Belize and new non-stop weekly service from Edmonton and Vancouver to Huatulco, Mexico.
- Additional flights from Toronto to a number of sun destinations including Antigua, Cancun, Fort Lauderdale, Liberia, Orlando, Nassau, Puerto Plata, Punta Cana and Montego Bay.
- Additional flights from Toronto to a number of Canadian destinations including Winnipeg and Kelowna.
- Additional flights from Calgary to a number of sun destinations including Cancun, Cabo San Lucas, Los Angeles, Phoenix, Palm Springs and Puerto Vallarta.
- Additional flights from Calgary to a number of domestic destinations including Kitchener, Fort McMurray, Grande Prairie, Kelowna and Brandon.
- Additional flights from Vancouver to a number of domestic and international destinations including Cancun, Puerto Vallarta, Fort St. John, Calgary, Edmonton and Fort McMurray.
This winter WestJet will operate an average of 700 daily flights to 93 destinations including 37 in Canada, 22 in the United States, 33 in Mexico, the Caribbean and Central America and one in Europe.
- Revenue of $698.9 million vs. $651.6 million in prior year
- EPS from continuing operations of $0.24 vs. $0.25 ($0.26 before specific items(1)) in prior year
- CAE announces new strategic developments with longstanding airline customers in Asia
- Board of Directors approves 13% quarterly dividend increase from $0.08 to $0.09 per share
Montreal, Canada, August 10, 2017 – (NYSE: CAE; TSX: CAE) – CAE today reported revenue of $698.9 million for the first quarter of fiscal year 2018, compared with $651.6 million in the first quarter last year. First quarter net income attributable to equity holders from continuing operations was $63.8 million ($0.24 per share) compared to $68.7 million ($0.25 per share) last year, or $70.9 million ($0.26 per share) before specific items(2) last year.
First quarter operating profit was $97.8 million (14.0% of revenue) compared with $89.0 million (13.7% of revenue) in the first quarter last year. All financial information is in Canadian dollars unless otherwise indicated.
“Our progress in the first quarter supports our full year outlook, which remains unchanged,” said Marc Parent, CAE’s President and Chief Executive Officer. “We continue to enjoy good demand for CAE’s solutions in a strong market environment. The new strategic developments with airlines announced today strengthen CAE’s position in China and the ASEAN region, the fastest growing commercial aviation markets in the world. Underscoring our positive outlook, I am pleased to announce that CAE’s Board of Directors has approved a one cent or 13% increase to CAE’s quarterly dividend, which becomes nine cents per share, effective September 29, 2017.”
Summary of consolidated results
|(amounts in millions)||Q1-2018||Q4-2017||Q3-2017||Q2-2017||Q1-2017|
|Total segment operating income(3)||$||97.8||120.9||101.4||85.8||92.1|
|As a % of revenue||%||14.0||13.7||14.4||12.0||13.7|
|Restructuring, integration and acquisition costs, net of tax||$||–||15.0||2.0||7.2||2.2|
|Net income attributable to equity holders of the Company:|
|from continuing operations||$||63.8||67.4||67.6||48.3||68.7|
|from discontinued operations||$||–||(0.7)||0.2||0.1||(0.1)|
|Net income before specific items||$||63.8||82.4||69.6||55.5||70.9|
Civil Aviation TrainingSolutions (Civil)
First quarter Civil revenue was $411.8 million, up 11% compared to the same quarter last year, and segment operating income was $73.1 million (17.8% of revenue), up 15% compared to the first quarter last year. First quarter Civil training centre utilization(6) was 78%. The first quarter includes the impact of the standardization of certain types of simulators on revenue recognition. Civil revenue and segment operating income, if adjusted (7)(8) for the impact of this change would have been $452.0 million and $83.7 million this quarter, respectively. The impact during the first quarter of fiscal year 2017 was minimal.
During the quarter, Civil signed training solutions contracts with an order intake (5) value of $400.4 million, including agreements for ab initio pilot training for Jet Airways in India, and business aviation pilot training for MHS Aviation and Elit’Avia in Europe. Also during the quarter, Civil sold 8 full-flight simulators.
The Civil book-to-sales (5) ratio was 0.97x for the quarter and 1.07x for the last 12 months. The Civil backlog at the end of the quarter was $3.2 billion.
Since the end of the quarter, Civil made further progress on CAE’s vision to be the worldwide training partner of choice with new strategic developments involving airline customers in Asia.
In an agreement between CAE and China Southern Airlines, China Southern has acquired CAE’s 49% equity stake in the Zhuhai Flight Training Centre (ZFTC) for US$96 million. The evolution of this relationship allows CAE greater flexibility to address the broader aviation training market in China and the ASEAN region, and the opportunity to align its capital investment with its strategic priorities. As part of the transaction, China Southern Airlines will outsource to CAE third-party airline training being conducted at ZFTC. CAE will continue to serve China Southern as its partner for training services support, ab initio pilot training, and for its simulation equipment needs.
In response to reports published by the media, CAE confirms it is in advanced discussions with AirAsia to conclude a sale and purchase agreement for CAE to acquire AirAsia’s 50% share of the Asian Aviation Centre of Excellence Sdn. Bhd. JV. CAE’s relationship with AirAsia began in 2004 and with this agreement, it would expand with a contract for all AirAsia training requirements and that of its affiliates, in support of all the aircraft types it operates for an extended term. The transaction is subject to the successful conclusion of a sale and purchase agreement between the parties.
Summary of Civil Aviation Training Solutions results
|(amounts in millions except operating margins, SEU and FFSs deployed)||Q1-2018||Q4-2017||Q3-2017||Q2-2017||Q1-2017|
|Segment operating income||$||73.1||83.8||71.4||54.2||63.8|
Defence and Security (Defence)
First quarter Defence revenue was $263.2 million, up 2% compared to the same quarter last year and segment operating income was $26.3 million (10.0% of revenue), compared to $28.4 million (11.0% of revenue) in the first quarter last year.
During the quarter, Defence order intake was valued at $262.4 million. Notable wins include a Training Systems Integration contract with the UAE for a comprehensive training solution for the Predator XP and a contract from Airbus related to the in-service support of the C295W Fixed-Wing Search and Rescue training program in Canada. As well, Defence received a series of orders from Lockheed Martin involving C-130J fuselage trainers for the U.S. Air Force and U.S. Marine Corps. Also notable during the quarter, the first cohort of U.S. Army students to go through the new Initial Entry Fixed-Wing course at CAE’s Dothan, Alabama training centre graduated to become Army fixed-wing aviators.
The Defence book-to-sales ratio was 1.00x for the quarter and 1.31x for the last 12 months (excluding contract options). The Defence backlog, including options and CAE’s interest in joint ventures, at the end of the quarter was $4.1 billion.
Summary of Defence and Security results
|(amounts in millions except operating margins)||Q1-2018||Q4-2017||Q3-2017||Q2-2017||Q1-2017|
|Segment operating income||$||26.3||33.0||30.0||29.0||28.4|
Singapore, August 10, 2017 – Singapore Airlines (SIA) and CAE (NYSE: CAE; TSX: CAE) have signed a Memorandum of Understanding (MOU) to establish a joint venture for pilot training in Singapore. The joint venture will initially focus primarily on providing simulator training for Boeing aircraft types, supporting SIA Group airlines and other operators’ pilot training needs in the region.
The equally-owned joint venture centre will operate out of the Singapore Airlines Training Centre (STC) located near Changi Airport. SIA will initially transfer four of its full-flight Boeing aircraft simulators to the venture, while additional CAE-built training equipment will be acquired progressively. The training facility will provide a full range of initial type rating and recurrent training programmes for Boeing 737 MAX, 747, 777 and 787 aircraft types.
“The long-term prospects for the aviation sector are positive, and we are confident that the new flight training joint venture with CAE will further enhance Singapore’s position as a leading aviation hub. With the SIA Group expanding its fleet to drive additional growth, the joint venture will help keep pace with our own training requirements as well as those of other airlines in the region. This investment with CAE, one of the world’s leading civil aviation training organisations, is also in line with our push to drive revenue-generation from new adjacent businesses. Together with CAE’s expertise, we are positive that it will be a leading training facility for Boeing aircraft types in the Asia-Pacific region,” said Singapore Airlines CEO, Mr. Goh Choon Phong.
“Building on our relationship of more than 40 years, we are extremely honoured to join forces with Singapore Airlines and welcome this opportunity to leverage the strengths of our combined organisations to support the growing pilot training needs in the Asia-Pacific region – one of the fastest growing markets in commercial aviation,” said CAE’s President and CEO, Mr. Marc Parent. “This new joint venture will deliver best-in-class training, and will be an asset in supporting the growth of Singapore Airlines, one of the world’s premier carriers. CAE is dedicated to offering customers the most innovative training solutions to achieve the highest levels of safety and efficiency.”
The closing of the transaction is subject to execution of definitive transaction documents and customary closing conditions, including regulatory approvals. Subject to approvals, operations are expected to begin by the end of the year.
Delivering regional aviation to the world
- Q2 adjusted EBITDA1 of $65.5 million.
- Q2 adjusted net income1 of $26.7 million, or $0.22. per basic share.
- Q2 net income of $40.8 million, or $0.33 per basic share, including an unrealized foreign exchange gain of $21.7 million.
- Chorus’ leased fleet diversifies and grows to 56 upon completion of announced leasing transactions for 17 regional aircraft to date by Chorus Aviation Capital.
- Jazz signed five-year agreement with Bombardier Commercial Aircraft becoming an Authorized Service Facility.
- Jazz Technical Services completed world’s first Extended Service Program on Dash 8-300 aircraft.
- Five new CRJ900 aircraft entered Jazz’s Air Canada Express operation.
HALIFAX, Aug. 10, 2017 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced solid financial results for the second quarter of 2017.
“I’m pleased with our financial performance in the second quarter, delivering increases in adjusted EBITDA and adjusted net earnings of 13.3% and 22.3% respectively over the same period in 2016,” said Joe Randell, President and Chief Executive Officer, Chorus. “We’re making significant progress in growth and diversification as we build Chorus Aviation Capital into a leading regional aircraft lessor. Our objective is to become one of the top regional aircraft lessors in the world. Aside from the 39 regional aircraft under lease in the CPA, we have announced an additional 17 aircraft, bringing the total to 56. Diversification is made more robust through now securing products manufactured by the three, world leading regional aircraft manufacturers; Bombardier, ATR and Embraer, while adding new, well-established customers geographically dispersed across five continents. Along with the solid performance of our core businesses in Jazz and Voyageur, we’re transforming our organization into a global leader in regional aviation. We are now delivering customers a complete suite of regional aviation services including contracted flying, aircraft engineering, maintenance, repair and overhaul, parts provisioning and aircraft leasing solutions.”
Q2 2017 Overview
Chorus remains focused on its vision of delivering regional aviation to the world. Chorus once again delivered solid financial results, in line with management’s expectations, and made significant progress in its growth and diversification initiatives.
Chorus Aviation Capital (‘CAC’) is quickly becoming a globally significant regional aircraft lessor through the acquisition of leases with new, high quality customers located across five continents, and a diversified fleet comprising among the best regional jet and turbo-prop offerings from Bombardier, ATR and Embraer. To date CAC has completed the acquisition of six ATR 72-600 aircraft on lease to Flybe and Virgin Australia, and three Bombardier Q400s to Falcon Aviation Services of Abu Dhabi. It also delivered the third of four CRJ1000 regional jets to Air Nostrum, and announced its intention to acquire one Embraer 190 aircraft on lease to KLM Cityhopper, and three Embraer 190 aircraft on lease to Aeromexico Connect. Within the first seven months of its existence, CAC has grown Chorus’ fleet of regional aircraft outside of the capacity purchase agreement (‘CPA’) with Air Canada to 17 aircraft with the average age of this fleet being approximately three years.
While Jazz did experience operational challenges at the hub airports and pilot transitioning activity resulting in a reduction in performance incentive revenues over second quarter 2016, the CPA continues to deliver stable financial results.
Jazz Technical Services completed the world’s first Extended Service Program on a Dash 8-300 aircraft, and has been designated as a Bombardier authorized provider of maintenance, repair and overhaul. Voyageur secured a second new flying contract in Europe, and expects to deliver a second converted Dash 8-100 package freighter to Wasaya Airways later this month.
Financial Performance – second quarter 2017 compared to second quarter 2016
In the second quarter of 2017, Chorus reported adjusted EBITDA of $65.5 million versus $57.8 million in 2016; an increase of $7.7 million or 13.3%.
The increase in adjusted EBITDA was primarily driven by:
increased aircraft leasing under the CPA with Air Canada of $6.4 million;
a $4.6 million increase related to incremental margin attributed to non-CPA aircraft leasing and maintenance, repair and overhaul; and
new contracts for international ACMI flying in the Voyageur operation contributed $0.7 million.
These increases were partially offset by:
- a decline of $2.4 million in CPA performance incentive revenue; and
- an increase of $1.6 million in stock-based compensation expense.
Adjusted net income was $26.7 million for the quarter, an increase from the second quarter of 2016 of $4.9 million, or 22.3%. The change was a result of the $7.7 million increase in adjusted EBITDA previously described, plus a $3.5 milliondecrease in income taxes; partially offset by:
- $2.7 million of additional depreciation primarily related to new aircraft; and
- $5.3 million of added interest costs related to increased aircraft debt and the convertible units.
Net income was $40.8 million for the quarter, an increase of $17.2 million from the second quarter of 2016. The increase was due to the previously noted $4.9 million increase in adjusted net income and:
an increase of $16.3 million in unrealized foreign exchange gains on long-term debt; offset by:
$3.1 million of foreign exchange losses on US dollar denominated cash held on deposit for investment in the aircraft leasing business; and
$4.5 million in employee separation program costs in the second quarter of 2017, versus $3.6 million in the second quarter of 2016.
- a decline of $3.3 million in CPA performance incentive revenue;
- an increase of $0.5 million in stock-based compensation expense; and
- an increase of $4.5 million, mostly attributable to increased crew costs including travel and training related to incremental flying activity.
Year to date 2017 compared to year to date 2016For the six months ended June 30, 2017, Chorus reported adjusted EBITDA of $119.6 million versus $108.7 million in 2016; an increase of $10.8 million or 10.0%.
The increase in adjusted EBITDA was primarily driven by:
- increased aircraft leasing under the CPA with Air Canada of $10.7 million;
- a $7.2 million increase related to incremental margin attributed to non-CPA aircraft leasing and maintenance, repair and overhaul; and
- new contracts for international ACMI flying in the Voyageur operation contributed $1.2 million.
These increases were partially offset by:
Adjusted net income was $42.5 million for the period, an increase from 2016 of $0.5 million, or 1.1%. The change was a result of the $10.8 million increase in adjusted EBITDA previously described, plus a $2.4 million decrease in income taxes; partially offset by:
- $6.1 million of additional depreciation primarily related to new aircraft; and
- $8.2 million of added interest costs related to increased aircraft debt and the convertible units.
Net income was $67.5 million for the period, a reduction of $11.5 million, or 14.6% from the same period of 2016. The decrease was due to the previously noted $0.5 million increase in adjusted net income and:
- a decrease of $13.9 million in unrealized foreign exchange gains on long-term debt;
- $8.8 million in employee separation program costs in the first half of 2017, versus $3.6 million in the first half of 2016; offset by:
- no signing bonuses in the first half of 2017, versus $5.5 million in signing bonuses in the first half of 2016; and
- $1.6 million of foreign exchange gains on US dollar denominated cash held on deposit for investment in the aircraft leasing business.
Swiss International Air Lines (SWISS) plans to replace its five remaining Airbus A319s with Bombardier CS100/300 aircraft in the spring of 2018, SWISS CSeries fleet chief Peter Koch told journalists in Zurich at the CS100 launch to London City Airport. The A319 replacement is possible with the existing order of 10 CS100s and 20 CS300s.
ATW understands SWISS offers 145 seats on its CS300s compared to the 138-seat A319. The next larger aircraft type is the A320, with a 168-180 seat configuration. SWISS’s Airbus narrowbody family fleet also includes 21 A320-200s and nine A321-100/200s.
SWISS, the CS100 launch customer, began scheduled services from Zurich to Paris Charles de Gaulle in July 2016. The Star Alliance member became the first airline to operate both CSeries CS100/300 variants. SWISS currently operates eight CS100s and two CS300s.
The national airline of Switzerland is acquiring the CSeries primarily to replace Avro RJ100s, which is 25% cheaper to fly and has a high operational reliability rate, Koch said. The biggest challenge for SWISS is the CSeries delivery delays, which force the carrier to reschedule operations. SWISS trains 10 pilots per month to CSeries standards; so far 210 pilots have been trained on the type. SWISS originally planned to receive a new aircraft every month. Koch said the hopes to accept the next aircraft in August and delivery delays are improving.
To fill the delivery delay gap, SWISS has wet leased one Bombardier CRJ900 from Slovenia-based Adria Airways during the summer period.
“For us, [the CSeries] is the perfect aircraft,” Koch said.
MISSISSAUGA, ON, August 8, 2017 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT, CJT.A) announced today financial results for the quarter ended June 30, 2017.
For the Quarter Ended June 30, 2017:
- Total Revenues were $88.2 million, an increase of $8.9 million or 11.2% versus the previous year
- Gross Margin was $23.3 million, an increase of $2.4 million or 11.5% versus the previous year
- Adjusted EBITDA was $24.6 million, an increase of $2.1 million or 9.3% versus the previous year
- Adjusted EBITDAR was $28.3 million, an increase of $1.4 million or 5.2% versus the previous year
“We are very pleased with the financial and operating results produced during the Quarter,” said Ajay Virmani, President and Chief Executive Officer. “The significant increase in revenues over the previous year was the result of the successful execution of our strategy to improve the utilization of our aircraft assets and to maximize margins. We continue to prudently manage our operating costs and look for further route network optimization opportunities. I would like to thank the entire Cargojet team whose dedication and commitment to excellence have enabled Cargojet to be the leader in customer service, on-time reliability and value to our customers across Canada and around the world,” concluded Mr. Virmani.
Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries approximately 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of 18 all-cargo aircraft. The Corporation operates over 12,000 flight legs yearly and has a team of over 800 dedicated professionals.
Air Canada CEO Sells Block of Shares for Investment Diversification, Estate Planning and Charitable Giving
MONTREAL, Aug. 4, 2017 /CNW Telbec/ – Air Canada announced today that Calin Rovinescu, its President and Chief Executive Officer, has sold 1,645,181 Class B Voting Shares in a block trade to a financial institution, as reported in applicable securities filings. Mr. Rovinescu plans to use proceeds from the sale of shares for investment diversification, estate planning and to fund his Family Foundation for charitable giving.
Mr. Rovinescu continues to own a substantial equity interest in Air Canada through his remaining holdings of Class B voting shares and other equity securities.
Air Canada is Canada’s largest domestic and international airline serving more than 200 airports on six continents. Canada’s flag carrier is among the 20 largest airlines in the world and in 2016 served close to 45 million customers. Air Canada provides scheduled passenger service directly to 64 airports in Canada, 57 in the United States and 95 in Europe, the Middle East, Africa, Asia, Australia, the Caribbean, Mexico, Central America and South America. Air Canada is a founding member of Star Alliance, the world’s most comprehensive air transportation network serving 1,300 airports in 191 countries. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax, which also named Air Canada the 2017 Best Airline in North America
A Brazilian Airbus C-295 did a cross-Canada tour last week visiting the three RCAF bases where the aircraft will be deployed starting in 2019. The Brazilian plane is configured similarly to the 15 C-295s that will start showing up at Canadian bases in 2019. Brazil is also in the process of getting its order filled and the Canadian trip was a familiarization trip for Brazilian pilots, who were accompanied by Airbus pilots on the trip. They went to 19 Wing Comox, 17 Wing Winnipeg and 8 Wing Trenton.
The C-295W aircraft will replace the six remaining flyable CC-115 Buffalo and the last of the RCAF’s CC-130H legacy transports that now double as search and rescue aircraft. The state-of-the-art C-295W beat the Leonardo C-27 Spartan and Embraer’s KC-390, a high wing jet, in the fixed wing search and rescue (FWSAR) competition. The first of Canada’s aircraft went on the assembly line in June.