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Tuesday, November 30th, 2021

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Double blow for LATAM as shares plummet 85% and Azul withdraws bid citing valuation concerns

Santiago, Chile-based LATAM Airlines Group S.A. (LATAM), South America’s largest air transportation group, saw its Chilean stock exchange share value plummet by 85% on Friday on the announcement of a restructuring programme that would see shares heavily diluted, though this loss was pared back to 45% by the close of trading.

The Group was proposing a US$8.19 billion injection of capital in an effort to exit from Chapter 11 bankruptcy. The proposal included a mix of new equity, convertible notes and debt, while LATAM also intends to launch an US$800 million equity rights offering to shareholders once the restructuring plan has been confirmed.

In addition, Brazil’s Azul SA announced this Monday that it has withdrawn its non-binding proposal, submitted on November 11, to combine with LATAM and which had included approximately US$5 billion in equity financing, backed by some creditors of LATAM. Azul withdrew its offer citing that LATAM's valuation in the bankruptcy proceedings had become higher than it found acceptable, also citing ongoing uncertainty in the aviation industry amid the COVID-19 pandemic, especially in long-haul markets.


ALC delivers first of six new Airbus A321-200neo aircraft to China Airlines

Air Lease Corporation (ALC) has announced the delivery of one new Airbus A321-200neo aircraft on long-term lease to China Airlines. Featuring Pratt & Whitney PW1133G-JM engines, this is the first of six new A321-200neos confirmed to deliver to the airline from ALC’s orderbook with Airbus. This aircraft is the first A321neo to deliver to China Airlines.

“ALC is honored to be the first to introduce the A321neo to our long-time customer China Airlines. The A321neo will become the backbone of China Airlines’ single-aisle fleet, providing fleet expansion and modernisation and elevation of its passenger experience to new levels. The greater fuel efficiency and operating flexibility of the A321neo will also maximise profitability and further China Airlines environmental sustainability goals,” said John L. Plueger, Chief Executive Officer and President of Air Lease Corporation.   


NAC delivers one DHC8-400 to Flybe on lease

Nordic Aviation Capital (NAC) has confirmed that it has delivered one DHC8-400 aircraft, MSN 4155, to Flybe Ltd on lease. MSN 4155 will be the first of twelve NAC aircraft to join Flybe’s fleet.

Dave Pflieger, CEO of Flybe Ltd, said: “We are extremely pleased to be partnering with NAC to take delivery of our first De Havilland Canada Dash 8-400. This is an exciting time for our team and our new airline, and we look forward to working with both NAC and De Havilland Canada as we launch and grow our fleet with more of these incredibly fast turboprop planes that are more ecofriendly than regional jets.”

This latest news comes on the heels of the announcement last week that Birmingham Airport will be the location of Flybe Ltd’s new company headquarters and first new crew base.


BARIG welcomes plans and projects in coalition agreement from new federal government in Germany

The Board of Airline Representatives in Germany (BARIG) has welcomed a whole series of plans and projects that have been presented by the so-called “traffic light” parties in the coalition agreement for the new federal government in Germany. From the international airline association’s point of view, the agreement provides a basis for the further development of air traffic in a targeted manner and with regard to economic efficiency, fair competitive conditions as well as sustainability and climate protection – nationally as well as in a European and global context.

BARIG Secretary General Michael Hoppe comments accordingly: “The new German government’s work will be primarily determined by the slogan ‘Seeking More Progress.’  We see this and the corresponding announcements in the coalition agreement as a positive signal for good and future-oriented support in further modernising and stabilising air traffic in line with the environmental and climate protection objectives.”

BARIG welcomes, inter alia, the following plans of the traffic light coalition:
  • Developing an air traffic concept that strengthens the industry, makes it more crisis-proof and is in line with climate protection objectives
  • Implementing successfully at a European level the measures presented by the European Commission in the “Fit for 55” package while simultaneously preventing competitive distortions or carbon leakage
  • Using the revenues from the air traffic tax for the further development and production of alternative fuels
  • Driving forward the expansion of rail infrastructure and, in this context, improving the connection of airports to the rail network at the same time
“As we have witnessed several times during the ongoing COVID-19 crisis, international air traffic is of enormous importance for the German, European and global economy as well as for society as a whole and everybody’s individual mobility,” Hoppe emphasises. “We therefore appeal to the coalition partners to provide a feasible financing concept for their plans that is not putting the aviation sector at a disadvantage. Only then, the recovery of the industry and economy as well as the fulfilment of the climate objectives in aviation can be accomplished effectively. ‘Seeking More Progress’ will be primarily be achieved through fair framework conditions for all parties involved.”


TrueNoord transitions Embraer E190 to MAI

TrueNoord, the regional leasing specialist, has finalised the delivery of an Embraer E190 aircraft to MAI (Myanmar Airways International). The aircraft, based at Yangon International Airport, will service domestic routes across Myanmar and regional destinations in Southeast Asia. The aircraft has been transitioned to MAI from previous TrueNoord lessee, Air Astana.

Carst Lindeboom, Sales Director – Asia Pacific, says that the Company is steadily expanding its footprint across Asia and the team is pleased to support MAI and the people of Myanmar in these difficult times.

SAS reports fourth-quarter 2021 results

SAS has reported its fourth-quarter results, stating that customer demand continued to increase through the year’s last quarter and as a result, capacity increased 43% compared with the third quarter the previous year. Passengers flying with SAS increased 73% compared to the last quarter and the flown load factor reached approximately 60%, an increase of 7 points compared with the earlier quarter.

Uncertainties remain regarding the development of the COVID-19 pandemic and the transformation of SAS has to continue – to adapt to the new market. Revenue for the fourth quarter was MSEK 5,762 (3,035 previous year quarter), income before tax (EBT) was MSEK -945 (-3,252 previous year). Net loss for the period was MSEK -744 (-2,566 previous year).

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Tamar Jorssen
Vice President Sales & Business Development
Email: tamar.jorssen@avitrader.com
Phone: +1 (788) 213 8543