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14 | Flight International | 8-14 March 2016 flightglobal.com

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I

nteriors group Zodiac

Aerospace has disclosed that its

“transformation and industrial

recovery”, following a crisis in its

seat division, will take “longer

than initially planned”.

The French manufacturer says

it expects not to meet its operat-

ing-margin target of “close to

10%” in the fiscal year to 31

March 2016, and will need longer

than the 18 months planned for

the recovery. It adds “excess

costs” will remain at a “high”

level in the “short term”.

Zodiac had launched a compa-

ny-wide transformation, dubbed

Focus, in order to “take the

lessons learned from the seats

branch crisis and to strengthen the

group’s production system”.

Seat delivery delays are “stable

compared to mid-January”, but

management warns that in the

group’s aircraft interior activities it

faces a production ramp-up for

programmes still in an “early stage

of their learning curve”.

Full-year results will be

disclosed on 20 April. ■

A

irline group IAG is pressing

ahead with adjustments to

ease capital expenditure by

increasing the operational life of

some of its aircraft.

Chief financial officer Enrique

Dupuy said, during an IAG results

briefing on 26 February, the com-

pany had started implementing

plans to extend the life of Boeing

777s by four years.

Dupuy says the plan will make

an “important contribution” to

reducing ownership costs.

IAG’s review of the useful lives

and residual values of its fleet has

seen an accelerated depreciation

of Airbus A340-300s owned by

Iberia. Dupuy says the plan to sub-

stitute these with A330s is a “very

efficient one” and the company is

“very eager” to bring A330s to Ibe-

ria and Aer Lingus.

IAG indicated last November

that it intended to control capital

expenditure by retaining older air-

craft. The company is pursuing

the option of acquiring second-

hand aircraft, including A380s

and 777-3000ERs, to expand ca-

pacity.

The group says its ownership

review of the fleet last year gener-

ated net credit of €36 million ($

million). Dupuy says measures to

increase the density of the A

fleet mean ownership cost per seat

is improving. He adds, IAG is aim-

ing for more operating leases –

and looking to reduce costs during

renewals – and will become in-

PRODUCTION MICHAEL GUBISCH LONDON

Zodiac admits recovery

strategy will take longer

F

rench-Italian manufacturer

ATR has started flight testing a

turboprop with a novel electricity

management system and bleed-

air-free air conditioning unit to

assess requirements for an all-

electric systems architecture.

The first flight was held on 26

February with an ATR 72-600 pro-

totype (MSN 98); the same aircraft

used for a July 2015 test campaign

focused on composite airframe

structures and noise reduction.

For this year’s trial, says ATR,

the turboprop has been fitted with

an all-electrical energy manage-

ment system to optimise power

distribution and a Liebherr-

supplied all-electric air condition-

ing pack. Liebherr says electric

air-conditioning units can save

weight – compared with conven-

tional bleed air-based systems –

and reduce fuel consumption, as

energy requirements can be opti-

mised for different flight phases.

Partners include Thales, which

provided electrical generation

equipment for the trial. Both this

and last year’s flight-test campaign

are part of the EU’s Clean Sky pro-

gramme, aimed at improving avia-

tion’s environmental perfor-

mance. ATR 50% shareholder

Finmeccanica acts as co-ordinator

of the “Green Regional Aircraft

Integrated Technology Demon-

strator” under Clean Sky. ■

INNOVATION MICHAEL GUBISCH LONDON

All-electric ATR starts testing

ATR

The prototype features a weight-saving air conditioning system

volved in fewer ownership agree-

ments.

During 2015, Iberia generated

the strongest improvement in

operating profit of IAG’s carriers,

with €247 million.

IAG says the Spanish carrier

made “significant progress” on its

strategic revamp, improving its

cost base and restoring withdrawn

routes. The carrier is “starting to

achieve positive returns” for IAG,

with an after-tax profit of

€155 million.

PROFITS LEAP

British Airways’ operating profit

increased by more than 40% to

£1.37 billion ($1.9 billion), as a re-

sult of non-fuel unit cost

improvements, which helped bal-

ance weaker passenger revenues.

IAG says fuel benefits were

partly offset by weaker yields, in-

cluding on BA’s oil-related routes.

Spanish budget carrier Vueling

posted a 13.5% rise in operating

profit to €160 million, despite flat

unit revenues and “adverse” non-

fuel unit costs – the result of ele-

ments including network expan-

sion and the effects of a 2014

collective agreement.

IAG’s latest acquisition, Aer

Lingus, produced an operating

profit of €124 million, up more

than 72%. Aer Lingus increased

unit revenues 4.8% and improved

yield and seat load factor, and IAG

says the carrier achieved efficien-

cies in employee unit costs. ■

OPERATIONS DAVID KAMINSKI-MORROW LONDON

IAG to stretch life

of valued assets

Extended use of 777 fleet and acquisition of second-hand

aircraft also form part of airline group’s capital control plan

AirTeamImages

Ongoing efficiency drive includes replacing Iberia’s A340-300s

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