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LATEST NEWS

Thursday, July 23rd, 2020

Bombardier secures US$1bn credit line on back of reduced second-quarter cash burn

Bombardier, the Canadian plane and train maker, has secured a US$1 billion secured loan, indicating that the company will now have sufficient liquidity to see it through the worst of the COVID-19 pandemic.

Having severely revised its 2020 forecast, Bombardier has now begun to announce job cuts as the market for high-profit-margin jets falls, with estimates indicating a thirty-three percent drop in demand. According to the company, the loan will provide sufficient liquidity for working capital during a period when it will have to readjust its production rates downward.

With second-quarter results due to be announced in the first week of August, pro-forma liquidity of about US$3.4 billion, and about US$1 billion of free cash flow usage is anticipated. Bombardier announced that at the end of June it had approximately US$1.7 billion cash in hand and US$2.4 billion in liquidity.

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DHL Express to add four 767-800 BCFs to fleet

DHL Express will add four 767-300 Boeing Converted Freighters (BCF) as part of the logistics company’s efforts to continue modernizing and growing its fleet with cost-efficient and reliable freighters.

This step is part of DHL’s effort to modernize its long-haul intercontinental fleet in order to fly more eco-friendly and cost-efficiently. The aircraft are converted from passenger to freighter configuration by Boeing to fit the needs of DHL Express and meet the rising global demand for express services.

Aventure acquires Boeing 757-200 airframe

Aventure Aviation has acquired another Boeing 757-200 airframe, MSN 27971 . This is Aventure’s second 757 purchase in the last few months, and comes on the heels of their purchase of MSN 27208. The airframe is currently stored in Goodyear, Arizona at Aersale.

The aircraft, last operated by Air Astana, is currently equipped with a half-life serviceable APU, 7+ years of green time remaining on heavy-weight landing gear, as well as RB211 nacelles that have had the FAA AD modification installed by the OEM back in 2018. The airframe is considered one of the best conversion candidates on the market and there are discussions with some smaller operators to put this back into service.

"The covid crisis has caused the cargo market to boom, and the Boeing 757 is a key component of the world’s cargo fleet. Based on current flight data, we have also noticed that nearly all of Delta’s and United’s 757s fleet have also come back into service. As a result, we are seeing strong demand of aircraft parts from both airlines and freight carriers to support their operations." said Aventure Vice President, Talha Faruqi.

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Air Tanzania selects Panasonic Avionics for A220 IFE and connectivity

Air Tanzania has selected Panasonic Avionics’ (Panasonic) inflight entertainment (IFE) and connectivity systems to enhance the passenger experience onboard its Airbus A220 aircraft.

The airline has equipped two of its A220s with Panasonic’s eX1 IFE solution which is specifically designed for narrowbody aircraft. Each seat will feature elegant full HD seatback monitors, complete with touch displays and handsets, and an intuitive, personalized interface. Passengers will have access to USB and laptop charging power points at every seat. Air Tanzania’s A220s will also be fitted with Panasonic’s inflight Wi-Fi service. Panasonic’s next generation connectivity enables fast internet to video streaming, all powered by its new satellite modem featuring bandwidth up to twenty times greater than previously available.

The announcement marks the extension of Panasonic’s relationship with Air Tanzania following the airline’s selection of its inflight entertainment and connectivity solutions for two of its Boeing 787 aircraft and two Airbus A220s in 2018.

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CDB Aviation appoints Brendan O'Neill as CFO

CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing (CDB Leasing), announced a new executive addition to its Dublin-based leadership team with the appointment of Brendan O'Neill as Chief Financial Officer, who will oversee all financial aspects of the company.

O'Neill has two decades of aircraft leasing and multinational experience, bringing a unique blend of cross-functional experience, combining financial, operational, and functional leadership.

Astronics awarded contracts by Bell to develop electrical power systems for FARA and FLRAA programs

Astronics Corporation, a leading provider of advanced technologies for global aerospace, defense, and other mission critical industries, announced contract awards received from Bell Textron, a Texton company, (Bell) for Astronics to advance its CorePower® airframe electrical generation and power distribution systems to support their Future Long-Range Assault Aircraft (FLRAA) and Future Attack Reconnaissance Aircraft (FARA) programs. These programs are part of the U.S. Army’s Future Vertical Lift initiative to improve vertical lift dominance with next generation capabilities.

Bell was recently selected for the competitive demonstration and risk reduction phase on the FLRAA program, which is intended to replace the UH-60 Blackhawk in the Army’s fleet. Bell’s candidate aircraft for the FLRAA program is the V-280 Valor. Astronics has been selected by Bell to develop the electrical power generation, conversion, and distribution system for the V-280. The development program is expected to be executed over the next 18 to 24 months.

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Spirit Airlines posts second-quarter net loss of US$144.4 million

Spirit Airlines reported total operating revenue for the second quarter 2020 of US$138.5 million, a decrease of 86.3% year over year, due to the significant decline in air travel demand as a result of the COVID-19 pandemic. Spirit reported a net loss of US$144.4 million for the second quarter compared to net income of US$114.5 million in the second quarter of 2019

For the second quarter 2020, total GAAP operating expenses decreased 61.3% year over year to US$328.9 million, which includes US$151.9 million of special items. Adjusted operating expenses for the second quarter 2020 decreased 43.3% year over year to US$480.8 million. These changes were primarily driven by a 92.5% decrease in fuel expense and reductions in various other expenses related to volume of flight operations, such as landing fees & other rents, distribution, and ground handling. Salaries, wages and benefits expense was about flat compared to the same period last year despite an 11.6% year over year increase in our pilot and flight attendant workforce prior to the onset of the COVID-19 pandemic. In March, Spirit suspended hiring across the Company except to fill essential roles.

During the second quarter 2020, Spirit entered into an agreement with Airbus (the Deferral Agreement) to defer certain aircraft deliveries originally scheduled in 2020 and 2021. Under the terms of the Deferral Agreement, the company now anticipates a total of 12 aircraft deliveries in 2020 (compared to 16 as previously planned) and a total of 16 in 2021 (compared to 25 as previously planned).
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Email: tamar.jorssen@avitrader.com
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Tamar