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Regional Aircraft

This category contains 86 posts

The ACMI business is dominated by the regional segment and is growing fast in Europe

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/           04-Dec-2018 11:03 PM   The ACMI business is dominated by the regional segment and is growing fast in Europe The practice of a sizeable airline subcontracting its regional flying to a partner airline is widely known in the United States. Such operations—a form of ACMI flying, where the … Continue reading

The Russians don’t do well with their commercial aircraft, the SSJ100 will never be a commercial success, and neither were the IL-96/86, TU-154, TU-134 or YAK-42. The new MC-21 looks real good, but its sales will like the SSJ100 be limited to basically Russia and the CIS. Now, where the Russians are very good is jet fighters, SU-30/35 and the new SU-57 and helicopters, and this is a segment Russian Helicopters has been doing real well in, with $3.2 billion in revenue in 2016 and a $610 million operating profit. Now, Abu Dhabi based Mubadala is part owner in Russian Helicopters, shows there is value in the company. The new Mi-38 from Russia looks real good and a market exists but not in North America or Europe yet, but maybe in time. One market Russia has not gone after successfully is the amphibious jet from Beriev, the Be-200, that is a “game changer” if there is one today in commercial aviation. The time is right in my opinion to bring back larger commercial amphibious aircraft bigger than the Viking Air DHC-6 Series 400, like a 30 passenger CL-415 and the 72 seat Be-200, but few see the light, but its there, just needs to be promoted, nurtured, marketed and demonstrated, but Russians have done no business development with it, beyond water bomber and SAR, needs new ideas and people to make the Be-200 a commercial success.

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/     Thursday October 25, 2018 / Stanislav Golubev/Russian Aviation   Mi-38 belongs to the niche of medium helicopters according to the classification of the Russian market. Today I will tell you about our modern corporate helicopter – the Very-VIP category Mi-38. Why VVIP, and not just VIP? Because there are very few … Continue reading

Elite Airways Returns to Long Island While Frontier Enhances Florida Service

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Six ERJ-145 regional jets are joining the eight EMB-120 at Inter-Caribbean Airways of the Turks & Caicos

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/   SIX NEW JETS FOR InterCARIBBEAN By Hayden Boyce & Todeline Defralien – The Sun – September 9, 2018       Over 60 airlines have failed in the Caribbean since 1981:  Aero Wings  Carib Aviation  Caribbean Star  RedJet  Trans Island Air 2000  Air Monserrat  Air Caribbean … Continue reading

A rare Caribbean airline success story, Turks and Caicos based inter-Caribbean Airways (8 x EMB-120, 4 x DHC-6, 1 x BN2 and soon 2 x ERJ-145’s) under the leadership of Chairman Mr. Lyndon R. Gardiner and CEO Trevor Sadler is planning to set up an AOC in the Dominican Republic with several used ERJ-145’s, as the 26 year old airline continues its impressive Caribbean expansion from Nassau, Havana, Kingston, Tortola all the way to Dominica. This Dominican Republic move would make it the second foreign airline that plans to do so, as two months back Laser Airlines of Venezuela announced it will fill the void left by the demise of PAWA Dominicana. Dominican ownership would be just 35%, it may be enough locally, but under most bilateral air service agreements (BASA) it requires majority ownership and control, so traffic rights could be an issue. No one has yet used the 50 seat regional jets in the Caribbean, though PAWA Dominicana did plan on operating 6 x CRJ-200’s, while fast they have a high unit cost (CSAK) and need a much higher yield to breakeven than what PAWA Dominicana was getting with its MD-80’s, and this will be interesting in a low yield market like the Caribbean.

    https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/       https://en.wikipedia.org/wiki/InterCaribbean_Airways     Foreign airline manages to become Dominican?     ~ and covers routes within the Caribbean (translated)     Eugenio De Marchena Sunday, 26 August 2018     InterCaribbean Turks and Caicos have initiated the process that demands the Dominican State with the aim of becoming a … Continue reading

Uganda Airlines II, starting to take shape, but I am not liking many of the decisions made so far. CEO Ephraim Bagenda has just 6 years of aircraft maintenance experience at Rwandair? really? when commercialisation will make or break the new airline? they have a CEO with no commercial, finance, sales, marketing, RM, etc. experience? it is just not the right qualification for a CEO for a new national carrier. Now, Uganda Airlines has the unique distinction of being the the only buyer of the A330-800 in the whole world? why?, though it did get a 58.4% discount (to $US 108M) on the $US 259.9M list priced aircraft, they could have leased a new B787-8/9 or A350-900? Meanwhile Bombardier is showing its desperation to sell its struggling CRJ’s by selling 4 x CRJ900’s to Uganda Airlines for $US 110.8M ($US 27.7M each), which is a discount of 40.4% from the list price of $US 46.5M each, very good for Uganda Airlines, but could have leased them also or E175’s/190’s, but now the fleet resembles that of Rwandair (except no B737’s yet). So what did AA pay for the 15 + 15 CRJ900 order a few weeks back? surely more than 55% off ($US 20.9M for each)? which is not far from the estimated cost of $18.8M, leaving a small margin for the new Regional Aircraft Division now that CSeries is part of Airbus for free. Looks like great deals are plenty today from all 4 commercial jet aircraft OEM’s.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Reviving Uganda Airlines: How government plans to raise the money – Daily Monitor – July 24, 2018   By Dicta Asiimwe & Raymond Tamale         Uganda hurriedly firmed up plans to revamp the country’s defunct airline in March 2019, after signing a … Continue reading

SUMMARY: Farnborough International Airshow 2018

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/       Farnborough Airshow wrap-up    The Farnborough 2018 Airshow was stolen by freighter orders, proving to many that the air cargo market is restoring to strength. We could therefore argue that Farnborough 2018 further shows that carriers such as Emirates (as one major example) … Continue reading

Two of Europe’s biggest regional airlines, Air Nostrum and CityJet aim for closer cooperation , with a combined fleet of 88 aircraft and up to Euro 700 million in revenue from wet lease and franchise contracts they are out to conquer the regional market in Europe? Yet they are both over dependent on 1 major customer each for their survival, CityJet on SAS and Air Nostrum on Iberia Regional, they both have a large fleet of what I call “loser” aircraft programs as CityJet has 7 (+8 on order) of the 95 passenger Russian Sukhoi SSJ100’s, the ONLY operator in Western Europe, and only the 2nd western airline to operate it commercially (after Mexico’s Interjet), its cheap and it is about to get the boot from LH’s Brussels Airlines for poor dispatch reliability! Air Nostrum has 27 of the 60 delivered (just 68 ordered in 8 years of production) 100 passenger CRJ1000’s (a 18.2 meter stretch of the 1970’s CL-600 Challenger business jet), that airlines just don’t want or need, it is a very long tube from the back, and noone is buying it, airlines know best as to what is good and bad, it is why aircraft orders say novels about any aircraft no matter what an OEM says or thinks!

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     July 17, 2018   100 passenger CRJ1000 of Air Nostrum (Spain)   95 passenger Sukhoi SSJ100-95 of CityJet (Ireland)       Tomas’ Comment:   Interesting development, but no surprise, CityJet has been looking to buy other other operators as it looks for M&A … Continue reading

SUMMARY: DAY #1 at Farnborough International Airshow – July 16, 2018

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/         July 16, 2018,  Airfinance Journal:        Day One of Farnborough 2018 belonged firmly to Boeing in terms of firm orders, although the US manufacturer saved up many of its largest announcements from deals done earlier in the year.   Airbus, meanwhile, … Continue reading

The national flag carrier of Fiji is Fiji Airways, whose history goes back to 1951, and which was until May 2012 known as Air Pacific, and from 2012 it has become a very profitable airline national airline under 2 excellent previous airline executives, American CEO’s Dave Pflieger (Ex-CEO Hawaiian Airlines and after Fiji Airways he went on to Silver Air, Island Air and now RAVN Alaska), German Stefan Pichler (Ex-CEO Thomas Cook AG, Ex-COO Virgin Australia, Ex-CEO Jazerra Airways, Ex-CEO airBerlin and now CEO Royal Jordanian) and now highly regarded and talented South African CEO Andre Viljoen (Ex-Comair, SAA, Ex-CEO Air Mauritius). Fiji Airways has grown its fleet to 12 jets (6 x A330-200, 1 x A330-300, 1 x B737-700, 4 x B737-800 and 6 on order, 1 x A330-300 and 5 x B737-8’s). The airline is part of the Air Pacific Group, which also owns 100% of Fiji Link (1 x ATR-42-600, 2 x ATR-72-600, 3 x DHC-6-300’s to be replaced by 4 x Viking Air’s Series 400 Twin Otters), with the Government of Fiji owning 51% of Air Pacific Group, 46.32% owned by QANTAS and 2.68% ownership spread out between Air New Zealand and the Governments of the Pacific island states of Kiribati, Tonga, Nauru and Samoa.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     FIJI AIRWAYS, THE LITTLE AIRLINE WITH A BIG HEART   Written by Tom Ballantyne July 14, 2018 – June 2018 edition of Australian Aviation.       It’s the little airline with a big heart. In the South Pacific, where history suggests financial success … Continue reading

The Chairman of Estonia’s Nordica resigns. Remember this was the airline that took over Estonian Air routes the very day Eastonian Air shut down (November 8, 2015) as per European Commission orders to give back to the Estonian people the Euro 85 million in illegal aid that was used to keep the struggling national airline alive as it distorted competition. With no money to give back, Estonian Air had to shut down, just like Hungary’s Malev (February 3, 2012) and Cyprus Airways (January 9, 2015) for using illegal state aid. The Estonians learned from the Malev and Cyprus Airways EC ruling on how to circumvent EC rulings, and Nordica (Nordic Aviation Group) was readied and waiting in the wings for 2 months before the EC Ruling with Euro 72.7 million in new Estonian state aid for a “new” state airline. Now it has 18 aircraft (6 x ATR-72-600, 2 x CRJ700 and 10 x CRJ900) and is 49% owned by LOT. Has Nordica and Estonia circumvented EC rules? did they find a way to beat the EC and just let the old national airline collapse and start a new one with no repercussion? You know, all EU states should get out of the airline ownership business, airlines today need to swim or sink and state aid distorts competition, especially with private airlines who need make a return for their shareholders. Time for the EU states to get out of the airline business finally! No more public money for EU airlines, that is what the EC should be aiming for now.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Chairman of the Management Board of Estonian airline Nordica submitted his resignation   July 14, 2018 –  The Nordic Times       Jaan Tamm, Chairman of the Management Board of Estonian airline Nordica, submitted his resignation to the Supervisory Board of Nordic Aviation Group … Continue reading

Smart way for Estonia to avoid illegal state airline support? On November 8, 2015 state owned Estonian Air was forced to shut down after the European Commission declared it cheated with state aid to stay afloat and that it return Euro 84.9 million. Estonia knew this decision was coming and had already decided that the country must have a Estonian airline at all cost and two months before the closure it set up two new public aviation companies, Nordica and OU Transpordi Varahaldus, with Euro 72 million allocated by the state, and screw the EC, they were going to use state aid for another state owned airline to distort and compete with other EU based airlines? Ho wcan the EC allow this, should the Hungarian and Cypriot Governments have put up new money again for a new state airline when Malev and Cyprus Airways was forced into bankruptcy for illegal state aid? The EC needs to get its act together, the Estonians laughed in their face, and started flying their new state owned airline Nordic Aviation Group, the same day estonian Air stopped flying! What was the point? and what is the lesson for other EU state airlines, and where it the protections for privately owned airlines against state owned airlines like SAS, LOT, airBaltic, Croatian Airlines when the EC rulings are circumvented?

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     This article was written and first published on gediminas.ziemelis.com on 13th February 2018   Smart way for Estonia to avoid illegal state airline support?         Tomas’s Comment: A sad story on how the European Commission failed privately owned airlines in the … Continue reading

Possibly the ‘WORST AIRLINE’ in the world today financially, South African based Fastjet Group (once a LCC with 3 x A319’s, ex-Fly540), now just a point to point regional 2 x E190’s, 3 x ERJ145’s. Just received $10 million from shareholders to stay alive, after losing $48 million in 2016 on revenues of $68.5 million (-70% loss margin), and in 2017 it lost $24.5 million on revenues of $46.2 million (-53% loss margin) while it received $72.8 million in new investment in the same year along on top of its $35.2 million in debt. With cash balance down to $3.3 million on June 18, 2018 it was on the verge of collapse, having “burned” $16.7 million in 6 months and the investors have saved its ass again, but WHY? This fastjet has lost $303.4 million since 2012 on revenues of $308.1 million (-98% loss margin), and retained earnings at the end of 2017 were at a negative $338.5 million? its yield ($/RPK) is lower than its CASK, for a 108% breakeven load factor? Yet more money is forthcoming? as are 3 new ATR-72-600s’ to add more capacity and it wants to buy South Africa’s regional airline, Federal Air (aka FedAir, runs 18 x CE-208’s to Beech 1900D’s)? WHERE is the light at the end of the tunnel for this LOSER?

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   July 9, 2018     Tomas’ Comment:   So Fastjet gets another $10 million? this is the troubled airline that lost a ridiculous $48 million in 2016 on revenues of $68.5 million (-70% loss margin), then came in a new team in August 2016 and … Continue reading

Boeing and Embraer sign MOU for a new strategic partnership

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Airline Economics Daily – July 5, 2018       Putting an end to speculation, Boeing and Embraer have signed a Memorandum of Understanding (MOU) to establish a strategic partnership that will focus on the development of a commercial airplane portfolio that ranges from 70 … Continue reading

Fastjet hits back at media for being to harsh on it, yet while no one can be as bad as Fastjet was in 2016, with an operating loss of $US 63.9m (yes, -48% operating loss margin) operating 3 x A319’s, things have not changed much since August 1, 2017. The airline received $US 72.8m in new investment in 2017 and had an operating loss of $25.3 million and in that 18 months it has burned it all away with a smaller fleet (3 x ERJ-145, 2 x E190)? yes it reduced expenses, off course with smaller aircraft, but burning cash at $4.0m a month one has to really ask is this ‘new’ business model any better? as load factor is 71% and revenue per seat of just $60.90 means its yield is way too low, again another carrier offering LOW FARES, but NOT a LOW COST CARRIER! and PRASK is well below CASK, and they want more money? seriously?

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/       Tomas’ Comment: They can paint a rosy picture, but it has been under a turnaround since August, 2016, so 22 months of restructuring they should be further along in their recovery, but they are not and yes they have down-gauged to much smaller … Continue reading

SUMMARY: NO surprise! Fastjet of South Africa is on the brink of failure, without a cash immediate injection, as cash on hand is down to $US 3.3m, this airline’s LCC business model with A319’s was broken for years, then they abandoned the model for regional jet flying with 3 x ERJ-145’s and 2 x E190’s. With operations in Mozambique (under Solenta Aviation Mozambique), South Africa (“branding licence”? with Federal Airlines), Tanzania (Fastjet Tanzania 49% owned) and in Zimbabwe (FastJet Zimbabwe 49% owned) and still cannot make money, share price fell 70% today, and yet still the airline is valued at $US 29m seriously?

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Fastjet warns it cannot continue without equity raising Airline Economics Daily – June 27, 2018 Tomas’s Comment: This is a sad story, the LCC model was a disaster, in 2016 it lost $US 48m on $US 68.5m in revenue? a -70% loss margin? what kind of business is that? They found a … Continue reading

SUMMARY: The Chairman of the Republic of China (ROC) (aka Taiwan) based Daily Air, has been detained over fraud. It is alleged the airline created fake invoices to get more state subsidies, and at this point no word if there was any ‘irregularities’ with the recent acquisition of 4 x DHC-6 Series 400’s from Viking Air which has a value of $US 30 million. The airline flies into the highly volatile and politicized islands of Penghu, Kinmen, and Matsu, which are claimed by the Peoples’ Republic of China (PRC) which considers the islands and Taiwan, its territory, and makes no bones about the fact the ‘renegade’ province will one day be part of the PRC again, ideally peacefully but by military force if need be. The ROC is now, sadly down to just 17 UN member states that recognize it over the PRC out of 193 UN member states, the tide is turning against Taiwan and its once big aspirations of full independence.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Head of Taiwan’s Daily Air detained over fraud June 21, 2018 Daily Air’s new Viking Air DHC-6 Series 400 Twin Otter     The Chairman of Daily Air Corporation (4 x DHC-6 Series 400 from Viking Air and 2 x Do228-212), a state-subsidized domestic airline, serving several of the offshore islands of … Continue reading

SUMMARY: Canada’s PAL Aerospace, owned by Winnipeg based Exchange Income Corporation (EIC), is waiting for Guyana’s government approval to work with local operator Roraima Airways to provide aerial surveillance/patrol flights to the emerging oil and gas industry off shore.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     PAL Aerospace not yet in operation in Guyana-will not be working without gov’t approval, Gouveia says Guyana New – June 20, 2018     PAL Aerospace King Air 200 MPA (maritime patrol aircraft), the aircraft that put Provincial/PAL on the map for MPA ————————————————————————————————————————     Tomas’s Comment:   PAL Aerospace … Continue reading

After 8+ years, the Sukhoi SSJ100 program still struggles with just 125 in service, now launching their new 75 seat SSJ75 to take on the E175-E2, MRJ90 and CRJ900, while a SSJ130 is in the works with 115 seats to take on the E190-E2 and the CS100? just can’t compete as latest orders from small & weak, sanctioned or Russian airlines shows (Aero Mongolia, S7, Iran Air Tours and Aseman Airlines)

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/ READ: Several previous articles on this site on the Sukhoi SuperJet Sukhoi SuperJet from Russia, with hope CAPA- June 19, 2018   Tomas’s Comment: Since now 86 months since the 1st SSJ100 was delivered to launch customer Armavia (Armenia) which took 1 of 2 on order on April 21, 2011 and went bust … Continue reading

Nepal’s aviation sector removed from ICAO’s SSC (significant safety concern) list

You can read more of my Articles and Posts on LinkedIN at:   https://www.linkedin.com/in/tomas-chlumecky-3200a021/    The Himalayan Times – June 22, 2018 – RASTRIYA SAMACHAR SAMITI Nepal’s aviation sector removed from ICAO’s SSC list Minister for Culture, Tourism and Civil aviation, Rabindra Prasad Adhikari, has said that International Civil Aviation Organisation (ICAO) has removed Nepal’s aviation … Continue reading