Latest news with #Azorra
Reuters
2 days ago
- Business
- Reuters
SkyWest, Lithuania deals lift Embraer at Paris Airshow
SAO PAULO/PARIS, June 18 (Reuters) - Investors and analysts on Wednesday welcomed fresh deals announced by Brazilian planemaker Embraer ( opens new tab at the Paris Airshow, including a major regional jet order from SkyWest and a defense agreement with Lithuania. The announcements helped Embraer's shares climb as much as 5%, making it the top performer on Brazil's benchmark stock index Bovespa (.BVSP), opens new tab, and underscored positive sales momentum for the company. Embraer got off to a turbulent start on Monday at Le Bourget as Polish carrier LOT, a long-time E-Jet operator, chose Airbus' ( opens new tab A220 regional jet over the Brazilian firm's E2 family after a hard-fought contest for a landmark 40-airplane deal. But it recouped ground on Wednesday as U.S. airline SkyWest placed a firm order for 60 E175 jets valued at $3.6 billion at list price, with options for 50 more. The deal was described as a "mega order" by Embraer's commercial aviation head, Arjan Meijer, who added in a statement that the E175 was the "cornerstone of regional aviation in North America." Santander analysts praised it as a "strong positive development" for Embraer due to the meaningful boost to its backlog and indications of continued demand for the first-generation models in the key region. The Brazilian firm also revealed that South Africa-based Airlink plans to lease 10 second-generation E195-E2 jets from Azorra, a move which Itau BBA believes could lead to further orders from the U.S. lessor in the future. On the defense front, Lithuania said it had tapped Embraer's KC-390 airlifter for its fleet, paving the way for the acquisition of three aircraft. Financial details were not disclosed. Analysts say the move may fuel more orders from European and NATO countries, with nations such as Portugal, Hungary and the Netherlands having also selected the aircraft, which competes with Lockheed Martin's (LMT.N), opens new tab C-130. "We see potential for at least 50 new orders for the C-390 from NATO countries with the rise in defense investments in Europe," Bradesco BBI said in a note to clients. Embraer, the world's third-largest planemaker after Airbus and Boeing (BA.N), opens new tab, has been riding tailwinds on the back of strong demand for its jets. Its shares have surged 30% so far this year, building on gains of more than 150% in 2024.
Yahoo
01-05-2025
- Business
- Yahoo
Supply chain crisis forces airlines to get creative with aircraft parts
The commercial aviation industry is navigating a serious supply chain crisis, leading airlines and aircraft lessors to adopt innovative strategies to maintain operational readiness. Recently, aircraft lessor Azorra partnered with Delta Material Services (DMS) to dismantle an Airbus A220-300 for spare parts, marking the first such occurrence for this relatively new aircraft model. Although dismantling modern aircraft is uncommon, this situation underscores the severity of the ongoing component shortage. At the heart of the crisis are persistent issues concerning Pratt & Whitney's PW1500G engines, widely used in the Airbus A220 fleet. These engines, despite their efficiency, have faced frequent reliability concerns, resulting in numerous inspections and prolonged maintenance periods. With multiple aircraft grounded due to such complications, the demand for available spare engines and parts has grown significantly. Beyond specific engine-related challenges, manufacturers are experiencing dramatic backlogs in aircraft production, intensifying constraints across the sector. According to Alton Aviation Consultancy's latest analysis, narrowbody aircraft — which are the backbone of airlines' short- and medium-haul services — now face delivery delays of nearly a decade. Moreover, widebody aircraft production has also slowed, leaving airlines facing waits of seven to eight years for new deliveries. In turn, airlines have been compelled to adjust fleet strategies, opting to extend the useful life of existing aircraft to cope with prolonged delivery extension of aircraft lifespans has directly impacted the maintenance, repair and overhaul (MRO) industry, resulting in significantly heightened demand precisely as MRO providers themselves face severe operational constraints. Skilled labor shortages remain a central challenge as many technicians exited aviation during the pandemic and have not returned, creating a workforce gap that could take years to mend. Training new aviation maintenance personnel is a long process, and the marked increase in maintenance requirements has overwhelmed existing capacities, prolonging maintenance downtimes substantially. These challenges extend maintenance downtime significantly and complicate securing aircraft parts to keep these aged aircraft flying these operational delays are shortages in essential aerospace materials like titanium, a situation driven largely by geopolitical disruptions in traditional supplier regions. Sanctions on primary exporters like Russia have forced manufacturers to seek alternative suppliers, leading to procurement challenges and increased costs. Given these constraints, airlines and lessors are increasingly exploring unconventional solutions, like the recent A220 dismantling, to temporarily alleviate these mounting pressures by repurposing valuable components. Despite the challenges, industry observers also recognize potential opportunities created through these constraints. Avolon, one of the world's largest aircraft leasing firms, has stated that the unprecedented disparity between supply and demand will likely reshape aviation market dynamics over the next decade. Supply deficits could bolster airline profitability, especially if carriers concentrate efforts on their most profitable route networks and achieve optimal fleet utilization amid capacity limitations. According to Avolon's analysis, net airline profits could rise as much as 16%, reaching approximately $36 billion by the broader economic environment remains uncertain. Typical economic recovery cycles last four to six years, and the current expansion is already well into its fifth year, suggesting potential economic downturn risks. Europe's economic growth is showing early signs of stagnation, and broader geopolitical instability introduces additional volatility. Related: Airbus postpones rollout of A350 freighter until late 2027 The post Supply chain crisis forces airlines to get creative with aircraft parts appeared first on FreightWaves.
