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Genesis Lease releases third quarter 2009 results
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For the quarter ended September 30, 2009, Genesis recorded a net loss of $3.0 million compared to net income of $11.4 million for the same period last year. For the nine months ended September 30, 2009, net income was $11.3 million compared to $30.3 million for the same period last year. Results for the quarter and nine months included an accrual of $2.5 million for transaction costs incurred to date associated with the proposed merger with AerCap, as well as a non-cash charge of $7.7 million related to the accelerated amortization of deferred financing costs due to the reduction of capacity under the revolving credit facility from $1 billion to $200 million. These charges were recorded within Other Expenses and Interest Expense, respectively. Excluding the impact of those charges, net income was $6.1 million (EPS of $0.18) and $20.5 million (EPS of $0.60) for the three and nine months ended September 30, 2009, respectively.
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» NIKI increases firm orders for EMBRAER 190
Embraer and NIKI Luftfahrt GmbH signed a contract for another two EMBRAER 190 jets, confirming the purchase rights in the original contract, announced in July 2008. The initial deliveries of this new order should take place during the first semester of 2011. NIKI has become the first European low-cost carrier to combine the 112-seat EMBRAER 190, configured for mid-density routes, with conventional 150 to 210-seat narrowbody aircraft, optimized for high-density routes.
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» German Air Force receives 200th Eurofighter production aicraft
The 200th Eurofighter production aircraft from EADS Defence & Security (DS) was handed-over to the German Air Force, on November 24th at the Military Aviation Centre of DS' business unit Military Air System (MAS) and gathered both the industrial as well as the military Eurofighter community. The Eurofighter aircraft with the tactical number 30+51 will serve on active duty with Fighter Wing (Jagdgeschwader) 73 "Steinhoff" at Rostock-Laage in the northeast of Germany.
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» Boeing sees long-term growth for SE Asia aviation
Boeing forecasts that over the next 20 years, Southeast Asia’s airlines will require more that 2,100 new airplanes valued at approximately $330 billion. Boeing Commercial Airplanes Vice President of Marketing Randy Tinseth shared the company’s market data and forecast at a media conference focused on the global and Southeast Asia commercial airplane markets. Globally, airlines will need 29,000 new airplanes through 2028, valued at $3.2 trillion.
Airlines and the aviation industry in general have been hurt by a challenging and volatile business environment, Tinseth said. The world economy has been in recession, passenger and cargo traffic have declined and fuel prices are volatile. “But data indicates that the economic downturn has reached bottom and recovery has begun,” Tinseth said. “However, global recovery will be a long, slow process.”
The Thai economy is anticipated to contract 3% 2009, Tinseth noted, but is projected to grow around 5% in 2010 before settling into a long-term annual growth trend of 4.5%. Global recovery to the 2008 peak won’t occur until perhaps 2010, he said. “In Southeast Asia, air traffic growth will outpace economic growth,” Tinseth said. “Air travel growth over the next 20 years is expected to be above 6.5%, while the region’s economy is projected to grow at 4.6 percent.”
Looking at the Asia Pacific region in its entirety, long-term annual air traffic growth is projected to be 6.9% over the next 20 years, Tinseth added.
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» bmi restructures mainline and bmi regional operations
bmi has today announced the restructuring of its mainline and regional operations. The move takes place against a background where the airline industry is facing the challenges of a downturn in demand and the worst recession in the UK since records began. In addition to cost saving initiatives the programme also includes a wide range of revenue enhancement initiatives.
The airline’s goal is to focus on maintaining within bmi mainline and bmi regional a core network of services in the UK and Ireland, Europe, the CIS, The Middle East and the Kingdom of Saudi Arabia. Through a combination of improved aircraft productivity and efficiency, and from early 2010 the suspension of non-core and unprofitable services, bmi will reduce the number of aircraft in its mainline operation by nine from the current 39. This reduction will include two of five Embraer aircraft operating on mainline routes that will be returned to bmi regional.
Leases will not be extended on aircraft when they expire in the first half of 2010, including two of the three long haul A330 aircraft. bmi will therefore continue to serve mid haul markets with two long-range aircraft and its fleet of A321s. bmi regional, which through its niche market position and a long term charter agreement with Airbus, is maintaining a viable operation but is feeling the impact of a prolonged downturn in business-type travel. The return of two Embraer aircraft from the mainline operation at Heathrow and one additional spare aircraft will result in these three units being surplus to requirements. The company is in discussion with potential customers with a view to mitigating this situation.
A reduction in the number of aircraft deployed in bmi mainline and bmi regional operations will result in job reductions coming from all areas of the business, operational and corporate functions. The number of full-time equivalent jobs at risk of redundancy is expected to be approximately 600. However further job cuts cannot be ruled out as corporate overheads will also be cut to reflect the reduced flying programme. Management has today commenced consultations with unions and staff representatives with a view to minimising the number of compulsory job losses wherever possible.
The Lufthansa Group took over bmi in July 2009 and shortly after undertook a due diligence exercise which highlighted the need for a restructuring of the business. Lufthansa has given bmi its full support for the actions it is undertaking in this restructuring programme.
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» JorAMCo wins tender of three C-checks for Thomas Cook A330 aircraft
JorAMCo has signed a maintenance agreement with the British carrier Thomas Cook, the agreement covers performing C check on three Airbus A330, the work on the first aircraft has just been accomplished successfully at JorAMCo’s facilities .The deal with Thomas Cook was the first acquisition for JorAMCo in the British aviation market and part of JorAMCo’s expansion plans in the European market.
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