Daily2018-02-20
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LATEST NEWS

Monday, February 24th, 2020

AerCap signs lease agreement with Belavia Airlines for three Embraer E195-E2 aircraft

AerCap has signed an agreement with Belavia - Belarusian Airlines for the lease of three new Embraer E195-E2 aircraft. The aircraft are from AerCap’s order book with Embraer. The first aircraft is scheduled to deliver in December 2020, with the remaining two aircraft delivering in March and April 2021.

AerCap was the launch lessor customer of Embraer’s E-Jets E2 and has a total of 50 Embraer E190-E2s and E195-E2s owned and on order.


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IATA releases COVID-19 impact on demand and revenue

The International Air Transport Association (IATA) has released its initial assessment of the impact of the Novel Coronavirus 2019 outbreak (COVID-19), revealing a potential 13% full-year loss of passenger demand for carriers in the Asia-Pacific region.

As it had originally been forecast at 4.8%, the net impact will be an 8.2% full-year contraction compared to 2019 demand levels. Financially, this will equate to a US$27.8 billion revenue loss in 2020 for carriers in the Asia-Pacific region—principally China, with US$12.8 billion lost in the China domestic market alone. Carriers outside Asia-Pacific will likely see a revenue loss of US$1.5 billion, on the assumption loss of demand is limited to markets linked to China.

This would bring total global lost revenue to US$29.3 billion, representing a 4.7% hit to global demand. In December, IATA forecast global RPK growth of 4.1%, so this loss would more than eliminate expected growth this year, resulting in a 0.6% global contraction in passenger demand for 2020. The estimated impact of the COVID-19 outbreak also assumes that the center of the public health emergency remains in China, but if it spreads more widely to Asia-Pacific markets, the impact on airlines from other regions will be greater.

“These are challenging times for the global air transport industry. Stopping the spread of the virus is the top priority. Airlines are following the guidance of the World Health Organization (WHO) and other public health authorities to keep passengers safe, the world connected, and the virus contained. The sharp downturn in demand as a result of COVID-19 will have a financial impact on airlines—severe for those particularly exposed to the China market. We estimate that global traffic will be reduced by 4.7% by the virus, which could more than offset the growth we previously forecast and cause the first overall decline in demand since the Global Financial Crisis of 2008-09. And that scenario would translate into lost passenger revenues of $29.3 billion. Airlines are making difficult decisions to cut capacity and in some cases routes. Lower fuel costs will help offset some of the lost revenue. This will be a very tough year for airlines,” said Alexandre de Juniac, IATA’s Director General and CEO.

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DB Schenker new investor at Volocopter

Volocopter and DB Schenker have reported an investment by the global logistics service provider into the pioneer of Urban Air Mobility (UAM) as Volocopter extends its Series C funding to now total €87 million. Besides DB Schenker, Mitsui Sumitomo Insurance Group, TransLink Capital join the round as new investors, existing investor Lukasz Gadowski and btov also invested. The funding will go towards the certification of the VoloCity, hiring more industry experts and a second generation VoloDrone to ensure commercialization of the heavy-lift cargo drone product. To date Volocopter has raised total funding of €122 million.

Volocopter is developing autonomous electrical Vertical Take-Off and Landing (eVTOL) aircraft, e.g. the VoloCity, to offer air taxi services in the megacities of this world as an addition to existing transportoptions. Just recently the company performed a public flight over MarinaBay Reservoir in Singapore demonstrating the maturity of its technology. A full scale VoloPort prototype on display allowed visitors to experience what UAM could feel like in the future. This bears testimony to Volocopter’s holistic approach to UAM as an ecosystem. Last October, Volocopter presented the demonstrator of its VoloDrone, marking the company’s expansion into the logistics, agriculture, public services and construction industries.

MTU Maintenance opens office in Dubai

MTU Maintenance has announced at the MRO Middle East today that it has opened an office in close vicinity of Dubai International Airport (DXB).

While MTU has always been present in the region now the company will be even closer to its customers. It is part of its global growth strategy and enables immediate proximity to the commercial engine maintenance and leasing scene in the region – and in turn, to meet their needs better and faster.

This opening follows on from the recently opened MTU Maintenance Lease Services office in Singapore and Dublin. 

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NAC delivers one new ATR 72-600 to Silver Airways

Nordic Aviation Capital (NAC) has delivered one new ATR 72-600 aircraft, MSN 1555, to Silver Airways on lease.

Independent regional airline Silver Airways operates routes within Florida and between Florida and the Bahamas from its hubs in Fort Lauderdale, Orlando and Tampa and also flies seasonally between Boston and Bar Harbor, Maine.

Sikorsky to build six production VH-92A Presidential Helicopters

Sikorsky will build six production VH-92A® Presidential Helicopters under a contract from the U.S Navy. These helicopters are part of the 23 aircraft program of record for the U.S. Marine Corps.

Under the terms of the contract, known as Low Rate Initial Production (LRIP) Lot II, Sikorsky will begin deliveries of six VH-92A helicopters in 2022. The remaining production aircraft will be delivered in 2022 and 2023.

The VH-92A test aircraft at Patuxent River, Maryland, have proven their production readiness by undergoing rigorous U.S. government testing and operational assessments, including more than 1,000 flight test hours establishing the aircraft's technical maturity and readiness of its mission systems.   

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American Airlines Group announces pricing of unsecured senior notes

American Airlines Group has priced US$500.0 million aggregate principal amount of unsecured senior notes due 2025 (the notes). The notes will have an interest rate of 3.75% per annum and are being issued at a price equal to 100% of their face value. The notes will be guaranteed on a senior unsecured basis by the Company’s direct wholly-owned subsidiary, American Airlines.

The Company intends to use the net proceeds from the offering to fund contributions to its pension plans.

Turkish Airlines adds Vancouver to North-American destinations

Vancouver is officially the third Canadian destination for global airliner, Turkish Airlines. Starting June 9, 2020, the airline is offering three flights a week into and out of Vancouver International Airport.

Already operating nine weekly flights to Canada; six to Toronto and three to Montreal, the flag carrier airline will increase that number to 12 with its new Vancouver flights.

Turkish Airlines’ Toronto operations began in 2009, and expanded to Montreal in 2014. Roundtrip flights to Vancouver will be serviced with the B787-900 Dreamliner aircraft with 30 Business and 270 Economy seat capacity.

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Wells Fargo supports refinancing of AJ Walter Aviation

AJ Walter Aviation, part of the AJW Group (AJW), has closed a US$70m senior secured credit facility with Wells Fargo Capital Finance (UK) - part of Wells Fargo & Company - as lead bank and Shawbrook Bank (Shawbrook) as participant. Proceeds of the five-year facility will be used to support spare parts acquisitions to meet existing customer demand and fuel AJW’s steady growth.

Working with Shawbrook on this credit facility, Wells Fargo acted as arranger and agent. AJW was advised by EY Corporate Finance and by Vedder Price.

Gulfstream to expand in Dallas-Fort Worth area

Gulfstream Aerospace will expand its operations in the Dallas-Fort Worth metropolitan area with the construction of a service center at Fort Worth Alliance Airport. The facility, which will complement Gulfstream’s presence at Dallas Love Field, is expected to open by the fall of 2021 and will create approximately 50 new jobs.

To help meet the needs of its growing customer fleet, Gulfstream will invest more than US$35 million to build a nearly 160,000-ft² / 14,864-m² maintenance, repair and overhaul facility at Alliance. The building will include hangar space, back shops and employee and customer offices. Groundbreaking is scheduled for the third quarter of 2020.

Approximately 150 to 200 of Gulfstream’s 230 Customer Support employees at Love Field
are expected to relocate to Alliance, about 35 miles away, while about 30 to 80 employees will remain at Love Field to continue to provide on-site and transient operators with maintenance and service. Gulfstream’s midcabin aircraft completions business in Dallas, which includes about 350 employees and five hangars, will remain at Love Field.

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