Airlines

American Airlines &DFW Airport Seal the Deal on a 10-Year Lease Agreement

A new 10-year Use and Lease Agreement between American Airlines and Dallas Fort Worth International Airport (DFW) has been signed. It includes $4.8 billion in pre-approved capital investments that will be used to build Terminal F, renovate Terminal C, build gate expansions at Terminals A and C, among other significant modernization initiatives.

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The key contract that governs relations between airlines and the airport and determines the airport’s commercial strategy is the Use and Lease Agreement. The agreement specifies significant capital projects for the next ten years. The most important projects include:

An estimated $2.72 billion for the expansion of the Central Terminal Area, including a major reimagining of Terminal C, gate expansions extending from Terminal A and Terminal C, and significant upgrades to roadways and terminal access.
An estimated $1.63 billion for the construction of a new Terminal F, featuring a 15-gate concourse.

The terminal upgrades will add 24 new gates, positioning American and DFW for long-term expansion. American will expand its operational portfolio with new gates in the Terminal A and Terminal C piers after the project is finished.

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In order to maximize its operating capacity and improve the experience for connecting customers, American will also be able to extend operations in existing terminals in part of the initiatives. Through the duration of the lease, the new arrangement will enable American and DFW to collaborate on additional capital projects.

America is not only a massive economic engine to the Dallas-Fort Worth region but throughout the state of Texas. American’s total economic impact to Texas is more than $42.7 billion annually, and the airline employs more than 36,000 team members across the state. Additionally, America’s operation in Texas contributes to a total employment impact of more than 365,000 jobs in the state.

Airlines

S7 Group Begins Fan Blade Production for Western Engine Models

The privately-owned Russian aerospace giant S7 Group has reportedly commenced production of blades for Western-built aero engines at its subsidiary, the Berdsk Electromechanical Plant (BEMZ), located in Novosibirsk.

This development, reported by the Russian aviation publication ATO.ru, marks a significant step for the company amid ongoing geopolitical tensions.BEMZ has started manufacturing composite fan blades compatible with jet turbine engines, including the CFM International CFM56, which powers popular aircraft like the Boeing 737 and Airbus A320 family.

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The technology for restoring blades of gas turbine engines used in Airbus and Boeing aircraft was previously developed by the Institute of Theoretical and Applied Mechanics and is now being implemented in the production of new aircraft parts at BEMZ.

Currently, BEMZ focuses on producing parts essential for maintaining the airworthiness of civil aircraft. Over the past year and a half, the plant has manufactured approximately 3,500 structural elements and components for replacement on foreign aircraft, which are utilized by airlines such as S7 Airlines, Pobeda, Aurora, and Aeroflot.

The facility is undergoing expansion, with two stages of an investment program totaling 2 billion roubles already completed. These developments are likely geared toward producing blades for the CFM56 engines, which equip more than half of S7’s operational fleet, including 28 Airbus A320-family aircraft and 19 Boeing 737-800s.

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Vasily Yurchenko, CEO of Berdsk Electromechanical Plant, emphasized the shift in focus towards maintaining the airworthiness of the Western-made fleet. The plant has delivered thousands of components to S7 and other Russian carriers since 2022. Notably, according to Russia’s Air Operators Association, 89% of the country’s passengers in 2023 traveled aboard foreign-made aircraft.

Future plans include serious investments to transform the plant into a modern, high-tech aircraft manufacturing facility. In addition to engine blades, BEMZ is also known for producing various spare parts for aircraft, reinforcing its role in the Russian aviation industry as it adapts to new manufacturing needs.