26 Jan 2012 13:45
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS UNLAWFUL.
DORIC NIMROD AIR ONE LIMITED (the "Company")
Asset Manager's Announcement - Airbus A380 News
26 January 2012
The Company's Asset Manager has issued the following news update on Airbus A-380s. The Company's aircraft will undergo the precautionary visual inspection mentioned in the update, and the results will be supplied to Airbus. The Asset Manager has confirmed that the matter is the responsibility of the airline & the aircraft manufacturer, and that lease rent will continue to be due and payable throughout this process.
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Airbus A380 News - Update
A380 Wing Rib Feet Cracks - Recent Developments
Doric's Asset Management team have continued to monitor very closely the situation regarding hairline cracks that have been found on certain wing rib-skin attachments on a number of A380 aircraft, as originally reported on 10th January 2012.
On January 20th, 2012 the European Aviation Safety Agency (EASA) issued an Airworthiness Directive (AD), which requires the operators of 20 Airbus A380s presently in service to conduct a detailed visual inspection of certain wing rib feet and report the inspection results to Airbus. This is a precautionary measure and this practice is one of the reasons for the outstanding safety record in commercial aviation.
The AD identifies two different types of cracks on the rib feet, defined by Airbus as Type 1 cracks (connecting the rib feet holes) and Type 2 cracks in the vertical rib feet flange (horizontally). The rib feet connect the ribs to the inside skin of the wing. The wing ribs run perpendicular to the wing and provide for the stabilisation of the wing shape.
Type 1 are cracks on the rib feet originating from the rib to skin panel attachment holes . Type 2 cracks are cracks in the vertical flange of the rib feet . Type 1 cracks have been reported following visual inspections on, to Doric's knowledge as of today, eight A380s and Type 2 cracks have, as of today, been identified on two A380s. However, given the only recent discovery of this issue, more analysis will be required and this may result in further action being necessary. It is in this context that the AD was issued on January 20th, 2012.
Airbus have identified that the Type 1 cracks were caused by a combination of high pre-stress, build stress and the particular aluminium alloy used to make some of the brackets (or wing rib feet) applicable to the production of the wings until recently.
The actual root cause for Type 2 cracks is being investigated and Doric expects further results in the near future, taking into account the findings of the inspections ordered by the AD. Doric expects further ADs to be issued on this subject soon, setting out required repair and replacement procedures.
Neither types of cracks threaten the structural integrity of the aircraft in the short- and medium-term, but will have to be addressed in order to avoid any potential long-term issues.
For in-service aircraft, a program is already being worked out by Airbus that includes a permanent repair and long-term resolution of the issue with the Type 1 cracks. Replacement kits will be supplied and delivered by Airbus in accordance with the existing aircraft warranties.
We expect Airbus to provide a similar solution in respect of Type 2 cracks, where required, once the AD inspection results have been analysed.
The financing parties of Doric-managed aircraft, i.e. lessors, investors and financiers are not affected, but are covered by the triple net lease arrangements. Even a theoretical permanent grounding of the aircraft type would result in a termination payment from the lessee, keeping lessors, investors and financiers whole.
The Doric Asset Management Team will review the findings of the inspections arising from the AD and will monitor any related repair activities for all A380s under management. Any significant developments will be reported as they arise.
The AD issued by EASA can be downloaded under: http://ad.easa.europa.eu/sort-2D.The information in the above report has been prepared by Doric Asset Finance Limited, the Asset Manager and has not been subject to detailed external review or verification. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness or otherwise of the information or opinions contained in these reports and no reliance should be placed on such information or opinions.
The information and opinions contained in these are provided as at the date of the relevant report and are subject to change and updating. No representation, express or implied, is made by the Company or the Asset Manager, or any of their respective officials, directors, employees or representatives (the "Parties") that the information contained in the reports will be updated at any time after the date of the relevant report. To the extent permitted by law and regulation, none of the Parties accepts any liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of these reports or their contents or otherwise arising in connection therewith.
For further information, please contact:
For administrative and company information:
Anson Fund Managers Limited
+44 (0) 1481 722260
For shareholder information:
Nimrod Capital LLP
Richard Bolchover and Marc Gordon
+44 (0) 20 3355 6855
END OF ANNOUNCEMENT
E&OE - in transmission.