Spirit AeroSystems does not mention the A350 program in its 2013 big-looses announcement. Why?

Spirit AeroSystems recorded a net loss of $587 million in the 4th quarter of 2013, in part because of additional charges on the Boeing 787 Dreamliner program, the company reported last Thursday. That compares to a profit of $61 million for the same time a year ago.

The loss and additional charges surprised some analysts.

The announcement follows 2 quarters of “big charges that may have left investors thinking the big programs were sufficiently kitchen-sinked and de-risked,” Steven Cahall, an aviation analyst with RBC Capital Markets, said in an analyst report to investors.

Charges on the 787 were unanticipated, said Peter Arment, an aerospace analyst with Sterne Agee. And the lack of a mention of the Airbus A350 program “leaves significant program risk,” he wrote in a report to investors.

Other analysts said they had also concerns about the charges for the Airbus A350 program that were not addressed on the call. Wichita-based Spirit AeroSystems builds the composite center fuselage section and front wing spar at its plant in Kinston, N.C.

Airbus, however, said it sees no problems with the ability of the company to supply the components. "We are very comfortable," said Daniel Wenninger, senior director of the A350 program in the U.S. He said he doesn't expect problems with deliveries or with Spirit's ability to meet Airbus' schedule to meet A350 production targets. Wenninger said Airbus was not considering alternative suppliers or taking the work in house.

For the year, Spirit recorded a loss of $621 million, compared to a profit of $35 million in 2012.

Revenue for 2013 increased 10 percent to $6.0 billion. For 2014, Spirit is forecasting revenue of $6.5 billion to $6.7 billion.

Spirit executives said Thursday they have concluded an internal strategic and financial review following 9 months of intensive effort.

The company is entering 2014 with a strong cost discipline and focus on performance and accountability that should begin to yield consistent cash generation, Spirit CEO and president Larry Lawson said in a statement.

“2013 has been a transformational year, and I’m proud of our entire enterprise,” Lawson said. “It’s been hard work. We’ve conducted our reviews; we’ve sharpened our processes and our team and we have intensified the clarity and fidelity of the analyses.”

The company is better positioned to move forward as it ramps commercial airplane production to historical high rates, Lawson said.

"We're trying to make smart decisions as it relates to going forward in terms of the type of work we get involved in and then our ability to estimate that work and make sure that the jobs we take on align with our core competencies," Lawson said during the call.

Based on the article “Spirit AeroSystems' big losses take analysts by surprise.” Published in The Wichita Eagle.

MSN2 cabin equipped A350 prototype will airborne by 25/February

Based on the information published by Le Journal de l'Aviation that is quoting Frank Chapman, the 3^rdflying prototype of the A350 will airborne before end of February. Although in a first version of the news, it was stated that Frank Chapman test pilot had said that “the MSN2 will fly next week or the following, in any case around mid-February”, the news was updated with a new prevision: “it should take off on 25 or 26 of February”.

The MSN2 test flying prototype has a special black&white livery and is the first cabin-equipped prototype. It will be used for the development and certification of the cabin.

Based on the article “Airbus A350 : MSN 2 devrait voler vers le 25 février” published by Le Journal de l'Aviation  

The longest flight of the A350 MSN3 prototype; more than 14 hours direct flight from Singapore to Toulouse.

The flight back from the show will be direct SIN-TLS, at 14.5h this will be longest to date.

The flying prototype MSN3 that has been in the Singapore AirShow since last weekend will return to Toulouse tomorrow Thursday. The flight is planned to last 14.5 hours – the longest ever done by the aircraft.

Based on the article “A350 Test Progress Exceeds Expectations” published in AviationWeek

A350 makes debut at Singapore Airshow

The A350 XWB flight test aircraft (MSN3) has performed its first ever airshow flying display today at Singapore Changi Airport for the Singapore Airshow.

On its way to Singapore, MSN3 passed the milestone of the first 1000 flight test hours for the A350 XWB program. This achievement is further demonstration of the steady progress the program is making on its way to type certification in Q3 2014.

Airbus has integrated testing and pilot demonstrations into the A350’s excursion to the Singapore air show, which marks the public debut for the big twinjet.

The aircraft at the show – MSN3 – is one of the two A350-900s currently engaged in the flight-test program operating from Airbus’s Toulouse headquarters. The positioning to Singapore flew via Doha in Qatar to enable the aircraft to be shown off to launch customer Qatar Airways.

Click the picture to watch a video

During the stop in Doha, the first airline pilots were able to get their hands on the A350 when two Qatar Airways crew members were invited to fly the aircraft. During the air show, two Singapore Airlines pilots have also spent some time at the controls. The pilots were all current Airbus pilots and found the transition to the A350 straightforward, says Airbus.

Asia-Pacific represents the A350 XWB’s largest customer base by number of airlines, with 11 carriers ordering 244 aircraft comprising all three family members.

“With some 30% of the total A350 XWB backlog coming from Asia, this next-generation widebody jetliner product line clearly meets the requirements of the region’s operators,” said Mike Bausor, the A350 XWB Marketing Director at Airbus.

In terms of quantity of aircraft ordered, two of the Airbus’ top-five worldwide A350 XWB customers are based in the region: Singapore Airlines, with 70 firm orders for A350-900s; and Cathay Pacific Airways, which has booked 46 A350 XWB jetliners (20 A350-900s and 26 A350-1000s).

Airbus’ A350 XWB is taking centre stage week at the Singapore Airshow.

The A350 XWB also received a key endorsement in Asia from Japan Airlines, the nation’s flag carrier which ordered 31 A350 XWB aircraft covering A350-900 and A350-1000 variants in 2013, marking the aircraft’s first Japanese order.

Further highlighting the A350 XWB’s appeal with leading airlines around the world, other Asia-Pacific A350 XWB customers include: AirAsia X, Air China, Asiana Airlines, China Airlines, Hong Kong Airlines, SriLankan Airlines, Thai Airways International and Vietnam Airlines.

Based on the article “Testing on agenda as A350 makes public debut” published in FlightGlobal

More than 1000 flight hours and 500 cycles logged by the first 2 A350 flying-prototypes.

The Airbus A350 flight test program is going much better than expected, according to the company’s Senior Vice President Flight and Integration Tests Fernando Alonso. The two test aircraft flying are accumulating around 100 flight hours each per month. “In previous programs, we did around 50-55 hours per aircraft and month,” Alonso said.

MSN1 and MSN3 logged a combined 1,025 flight hours and 505 cycles as of today 10/February. That puts the A350 close to half way through its test program which is aimed at 2,500 hours.

Most of the work (669 hours and 382 cycles) has been done by MSN1. The first A350 to fly is currently on the ground for several weeks for previously planned software and systems upgrades.

Meanwhile MSN3 has done hot & high and cold weather trials in Bolivia and Canada. It made a stop in Doha for a presentation at Qatar Airways before flying to Singapore. In Doha, 2 Qatar Airways pilots flew the aircraft and 2 Singapore Airlines pilots have been allowed to fly the A350 just before the opening of the show.

 

Based on the article “A350 Test Progress Exceeds Expectations” published in AviationWeek

A350 Trust building with Qatar Airways.

The Airbus A50 XWB carrying Qatar’s flag makes its first landing at the Hamad International Airport last week. Qatar Airways CEO Al-Baker said, “This is yet another key milestone in Qatar’s aviation progress. We have been steadily investing in our infrastructure to enable us to stay ahead of the latest developments in the global aviation sector. Hamad International Airport, which was built for advanced aircraft such as the Airbus A350 XWB, is our flagship asset and will soon be the new home of Qatar Airways and our modern fleet of aircraft, including the A350 XWB family.”

Journalists were given a tour of the interior of the A350, which is currently fitted out with testing equipment. They were also treated to an air display, with the A350 being put through a series of impressive maneuvers in front of a VIP crowd which included the Qatar Tourism Authority’s chairman and ambassadors of France, Germany and Spain. Rolls Royce senior vice president (customer business) Phil Harris joined Didier Evrard Airbus A350 XWB program EVP.

The aircraft stayed in the new Hamad International Airport (HIA) at Doha for 2 days when Airbus carried out some unspecified checks before departing for its next stop, the Singapore Airshow.

Click on the picture to watch a video

It is planned that the A350 will return in June to Qatar to test its performance during the summer heat.

Speaking to journalists at the event, Qatar Airways CEO Akbar Al Baker said the airline was “working very closely” with Airbus to receive its first A350 “later this year,” but declined to give a specific date.

“The first A350 XWB delivery will be at the end of this year. The test program is going absolutely perfectly, without any glitches. Airbus has been very transparent with us on the subject of its test results,” al-Baker said in Doha.

After this first delivery, he said that the airline expected to receive 9 A350s next year, followed by 1 new aircraft a month in 2016, and 2 aircraft a month in 2017.

“Once Airbus ramps up production we will receive larger numbers of Airbus A350 a year. It will be more than one aircraft a month, starting from 2016. After which we will receive more than two aircraft a month. In 2017, we will start receiving the stretched version A350-1000, for which we are also the launch customer” al-Baker said.

Based on the article “New Airbus A350 debuts at Hamad International Airport” published in Doha News and on the article “Qatar Airways set to receive 10 Airbus A350 XWB by 2015” published in Gulf Times

 

Triumph Aerostructures onboard the A350 XWB.

Triumph Group has announced that its subsidiary, Triumph Aerostructures-Vought Aircraft Division, and Airbus have reached an agreement to provide machined and assembled structural components for the fuselage structure which support the cabin storage bins and aircraft systems for the Airbus A350 XWB.

The initial contract is worth approximately $34.0 million over the next 4 years. At full rate, this work package would represent approximately $20.0 million per year. Production will be performed primarily at the company’s facilities in Nashville, Tennessee and Kansas City, Missouri, with first deliveries anticipated by mid-2014.

Jeffry D. Frisby, Triumph’s President and Chief Executive Officer, said, “This contract represents an expansion of our work with Airbus and an endorsement from them as a supplier partner. Our Nashville facility has a long history of supporting the A330/A340 and A320 programs. We are excited by our growing participation on the new A350 XWB and look forward to supporting this program for many years to come.”

Based on the press release “Triumph Group Selected to Machine and Assemble Structural Components for Airbus A350XWB Program”