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Friday, August 6th, 2021

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Bombardier posts promising Q2 2021 results and raises full-year guidance after solid half year

Canadian business jet manufacturer Bombardier has released its financial results for the second quarter of 2021 and on the back of a strong first half year, has raised its full-year guidance. Aircraft deliveries, revenue, profitability, and cash use should all now outperform previously given targets.

Business jet revenues during the second quarter of 2021 climbed to US$1.5 billion, up 50% year over year, fueled by increases in both aircraft deliveries and services. Aircraft deliveries totaled 29 in Q2, up 45% year over year, reflecting strong demand for large-category jets. Worldwide business jet utilization continued to rise, nearly reaching pre-pandemic levels in North America and Europe, buoying revenue contribution from services activities to US$295 million, up 29% year over year.

Aircraft sales equally accelerated, reaching a unit book-to-bill ratio of approximately 1.8 for the quarter, further highlighting strong interest in business aviation. Adjusted EBITDA for the quarter was up US$112 million year over year to US$143 million, reflecting favourable aircraft deliveries and mix, improved cost structure, disciplined implementation of cost-reduction programs and consistent progression through the Global 7500 aircraft’s learning curve. In addition, the increase was boosted by a higher contribution from business aircraft services, mainly due to increased fleet flight hours resulting from easing travel restrictions and progress on vaccinations consistent with the increase in revenues.

Reported EBIT from continuing operations for the quarter was US$36 million. The second quarter notably saw strong free cash flow (FCF) generation. The positive US$91 million from continuing operations FCF total for the quarter represents an improvement of US$841 million year over year and included a negative impact of approximately US$60 million in non-recurring cash items. Pro-forma liquidity at quarter end was ~US$2.1 billion and pro-forma net debt was ~US$5.3 billion.

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DAE posts financial results for first half of 2021

Dubai Aerospace Enterprise (DAE) has released its financial results for the six months ended June 30, 2021. DAE reported total revenue of US$613.4 million compared to the US$675.9 million in the first six months of 2020 and adjusted profit before tax of US$67.3 million compared to US$131.9 million the previous year.

The company's operating cash flow amounted to US$498.5 million compared to US$432.2 million in the first six months of 2020. Available liquidity was US$4,099.0 million compared to US$2,693.0 million at the year-end 2020.

SmartLynx and Royal Air Maroc enter into long-term commercial agreement

As part of a long-term ACMI agreement (aircraft, crew, maintenance, and insurance) between SmartLynx, a member of the Avia Solutions Group (ASG), and Royal Air Maroc, five SmartLynx Airbus A321 aircraft will come into service for the Moroccan national carrier and the country’s largest airline. The esteemed 64-year old airline currently operates a fleet of 59 aircraft on routes to more than 80 countries globally.

In a period between 01/07/2021 and 15/09/2021 SmartLynx units will be based at five major hubs of Moroccan aviation; Tangier’s Ibn Battuta Airport, Fes Sais International Airport, Nador Airport, Casablanca Airport, and Oujda-Angads Airport.

Along with the easing of worldwide travel restrictions and the steady increase in the volume of airlines resuming their scheduled passenger services, the important agreement comes as yet another welcome sign of recovery for the aviation and travel industries.

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Embraer and Porter Airlines sign major services and support agreement

After unveiling plans for a major expansion in North America with a firm order for 30 E195-E2 jets, with purchase rights for a further 50 aircraft, Porter Airlines has signed a major aftermarket support package contract with Embraer. The Total Support Program (TSP) agreement includes airframe heavy maintenance checks, technical solutions, and access to the Pool Program, which includes component exchanges and repair services for hundreds of reparable items for Porter’s E2 fleet of commercial aircraft, for up to 20 years. Currently, the pool program supports more than 50 airlines worldwide.

The Pool Program services will be provided by Embraer Aircraft Customer Services (EACS) in Fort Lauderdale, Florida, while the heavy maintenance services will be performed by Embraer Aircraft Maintenance Services (EAMS) in Nashville, Tennessee. In the coming months, Embraer will work with Porter in order to provide services related to the aircraft entry into service (EIS) process, which includes technical training, spare parts recommendations, and provisioning services.

Porter’s first delivery and entry into service is scheduled to start in the second half of 2022. The E195-E2 accommodates between 120 and 146 passengers. Configuration plans for Porter’s E2s will be revealed in due course.

Nigel Parkinson joins Chapman Freeborn as CCO - Passenger Charter Solutions

Chapman Freeborn, the global air charter specialist, and part of Avia Solutions Group, has announced that Nigel Parkinson, a travel expert with 25 years’ experience in the travel industry, will join the company as its new Chief Commercial Officer - Passenger Charter Solutions.

Parkinson joins the business following 13 years at ALTOUR, one of the largest travel management companies globally. He held the position of Senior Vice President - Global Sales and Account Management, covering all sectors; corporate travel, finance, media and entertainment, MICE, private jet, and music and film. He also undertook a number of acquisitions in this time as well sourcing independent contractors and global consolidations

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Atlas Air Worldwide reports second-quarter net income of US$107.1 million

Atlas Air Worldwide Holdings has reported second-quarter 2021 net income of US$107.1 million, compared to net income of US$78.9 million in the second quarter of 2020.

On an adjusted basis, EBITDA totaled US$243.7 million in the second quarter this year compared to US$247.0 million in the second quarter of 2020. Adjusted net income in the second quarter of 2021 totaled US$121.8 million compared to US$123.2 million in the second quarter of 2020.

Second-quarter 2021 airline operations segment performance improved significantly compared to the prior year that included exceptionally high commercial cargo charter yields in April and May 2020.

At June 30, 2021, the company's cash, including cash equivalents and restricted cash, totaled US$760.5 million compared to US$856.3 million on December 31, 2020.

ST Engineering secures two CFM56-7B engine MRO contracts

ST Engineering Group has secured two CFM56-7B engine Maintenance, Repair and Overhaul (MRO) contracts.

The first is an exclusive five-year contract from Alaska Airlines. Under the agreement, which is an extension of an existing contract that expires at the end of this year, ST Engineering will provide engine heavy maintenance to the airline’s fleet of 14 Boeing 737-700 and 12 Boeing 737-900 aircraft. These services will be provided starting from 2022 at the Group’s engine MRO facilities in Singapore.

The second contract is also for engine heavy maintenance services, which is awarded by an Asian airline. Under the agreement, ST Engineering will service CFM56-7B engines that will be re-delivered over a 12-month period from mid-2022 to mid-2023. These services will be provided at the Group’s engine MRO facilities in Xiamen, China.

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CDB Aviation executes US$660 million portfolio financing backed by 13 Airbus and Boeing aircraft

CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing (CDB Leasing), has entered into a facility agreement for the secured portfolio of thirteen Airbus and Boeing aircraft, valued at approximately US$660 million. The transaction brings the lessor’s executed financings year-to-date to a total of US$2.53 billion.

The first large-sized portfolio financing executed by the lessor since the onset of the COVID-19 pandemic is secured with a combination of Airbus A320-200 and A350-900 as well as Boeing 737 MAX 8 and 787-9 Dreamliner aircraft.

The facility is provided by a group of leading MLA banks, consisting of Natixis, MUFG Bank, Crédit Agricole Corporate and Investment Bank, BNP Paribas, Nord/LB, Société Générale, and The Hongkong and Shanghai Banking Corporation. Crédit Agricole Corporate and Investment Bank acted as facility agent and security trustee, and Natixis and MUFG Bank jointly coordinated the transaction.
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Tamar Jorssen
Vice President Sales & Business Development
Email: tamar.jorssen@avitrader.com
Phone: +1 (788) 213 8543
Tamar