Wednesday, January 30th, 2019


Norwegian Air Shuttle increases flexibility with NOK3 billion rights issue

Through a fully underwritten NOK3 billion rights issue, Norwegian Air Shuttle ASA (Norwegian) is looking to change the focus of the company from growth to profitability, thus capitalizing on the
market position and scale it has achieved over recent years. The intention now is to reduce capital expenditure through a combination of aircraft divestment, including JV, and postponement of aircraft deliveries.

Operational improvements will include the implementation of an extensive cost reduction program, #Focus2019, which will contribute to estimated reduction of minimum NOK 2 billion in 2019, the optimization of the base structure and the route network, and the agreement with Rolls-Royce
related to compensation for the operational disruptions on its long-haul operations which was entered into in December 2018. Norwegian will update the market in its Q4 2018 presentation. In combination with these improvement initiatives the rights issue should significantly improve the financial position of the Company during 2019.

According to the company’s CEO, Bjørn Kjos, “Norwegian has been through a period with significant growth. Focus going forward will increasingly be on cost savings and CAPEX reductions. We will now get in place a strengthened balance sheet that supports the further development of the company. With the strengthened balance sheet, the organization can now devote all its attention to further development of the company.”

According to its preliminary 2018 figures, Norwegian delivered revenues of approximately NOK 40.3 billion, EBITDA of approximately NOK -2.2 billion, EBITDA excl other losses/gains of NOK –1.2 billion, EBIT of approximately NOK -3.8 billion and EBT of approximately NOK -2.5 billion in 2018. At the end of Q4 2018, Norwegian had cash and cash equivalents of NOK 1.9 billion and equity position of NOK 1.7 billion. Due to the rights issue, the company will publish its Q4 2018 results on 7 February 2019. (US$1.00 = NOK 8.50 at time of publication.)


ANA to place aircraft orders with Boeing and Airbus

ANA Holdings voted at its board meeting to place an order for a total of 48 aircraft, which include 30 Boeing 737 MAX 8 and 18 Airbus A320neo. Deliveries are scheduled from FY2021 to FY2025.

The decision was based on the economic growth of Asia and emerging countries, with demand in the Asian aviation market. ANA and Peach Aviation each selected its own optimum aircraft to fit its strategy to further grow. The specific markets that will be served by the new order have not been finalized.

Boeing 737 MAX 8, a first for a Japanese airline, is more spacious compared to the current
aircraft and creates a comfortable atmosphere. The aircraft is also fuel efficient and is expected to improve the efficiency by approximately 15%. Given the plane's benefits to the domestic market, it will succeed the current Boeing 737 NG series. ANA HD decided to place 30 aircraft on
order, including 10 optional.

The Airbus A320neo, which currently serves ANA international routes, was chosen for its excellent fuel efficiency and cruising performance and will support Peach's current strategy. An order for 18 aircraft will be placed.

Air Lease Corporation delivers first A321-200neo to Vietnam Airlines

Air Lease Corporation (ALC) has delivered one new Airbus A321-200neo aircraft, featuring PW1130G engines, on long-term lease to Vietnam Airlines. 

This aircraft is the first of 12 new A321-200neos scheduled to deliver to Vietnam Airlines through 2019 from ALC’s order book with Airbus.

In addition to the 12 new Airbus A321-200neo aircraft, Vietnam Airlines is also confirmed to take delivery of eight Boeing 787-10s from ALC starting in the third quarter of 2019 through 2021.  Vietnam Airlines currently has two A330-200s on lease from ALC, for a total of 22 aircraft on lease to the airline. 


ANA takes 9.5% stake in PAL

ANA HOLDINGS will invest US$95 million in PAL Holdings and acquire 9.5% of PAL Holding's outstanding shares. PAL Holdings is the parent of Philippine Airlines (PAL), the Philippine flag carrier.

ANA HD will acquire the shares from Trustmark Holdings Corporation, which is owned by the Lucio
Tan family and is the largest shareholder of PAL Holdings.

In line with the Mid-Term Corporate Strategy for FY2018-2022, the ANA Group is expanding its international group network, which is considered its main growth pillar and strengthening its partnerships with foreign airlines to provide further convenience to its passengers.

This purchase underscores ANA HD's belief in the dynamism of the Asian region and the great potential of the Philippines' flag carrier and its confidence that the Philippine air travel market will continue to serve as an economic leader for the ASEAN region.

Additionally, the investment by ANA HD heralds the dawn of a new era of growth for PAL, which has embarked on a full-scale expansion program that has seen its fleet and network grow to almost 100 aircraft and 80 destinations in four continents.

GKN Aerospace demonstrates new nozzle technologies

The ETID (Expander Technology Integrated Demonstrator) Nozzle Extension builds on GKN Aerospace’s patented manufacturing method for actively cooled nozzle extensions, i.e. the so-called “Sandwich” laser welded channel wall technology. The sandwich has a reinforcement jacket using additive manufacturing in the form of laser wire deposition. ETID is part of the ESA funded Future Launcher Preparatory Programme guiding Europe’s next-generation upper-stage rocket engine design.

These technologies have matured over almost two decades of continuous improvement in GKN Aerospace’s center of excellence in Trollhättan Sweden and it shows clear customer benefit in liquid rocket propulsion applications. Some key operations of the manufacturing of the ETID Nozzle have been performed and developed in close cooperation with Force Technology in Denmark.

The program is currently hot-fire testing at DLR’s P3.2 test facility in close collaboration with ArianeGroup, Ottobrunn. The test campaign has completed the run-in tests and the first test block with excellent results. The second block with additional technologies and with extended duration of the tests has also been successfully completed. After completion of the third test phase the ETID NE technology is ready to target future upper stage flight applications.

GA Telesis

Team of industry pros join GA Telesis LIFT Group

A team comprised of senior asset leasing and trading executives has joined GA Telesis LIFT Group (Leasing, Investments, Finance and Trading Group).

Stuart Cauff, Luis Ayala, and Jonathan Cauff, formerly principals at Jet Trading and Leasing (JTL), were all named Managing Directors of GA Telesis’ Asset Transaction Group, the leasing and trading division of the LIFT Group.

These three industry veterans, with an aggregate of more than 70 years of industry experience, have concluded in excess of US$11 billion of commercial jet aircraft and engine transactions.
Founded in 2006, by its principals, JTL acted as arranger and investor on hundreds of asset transactions.

UNEX becomes new BARIG business partner

The Board of Airline Representatives (BARIG), the association representing the mutual interests of over 120 German and international airlines operating in Germany, expands its range of Business Partners by adding the UNEX Management Consulting Group. The consultancy’s portfolio also includes the unit UNEX Travel & Transport.

Besides strategical advice, UNEX Management Consulting Group also offers consulting regarding processes and operations to diverse industry branches and supports companies in strengthening their competitive position. For example, the consultancy employs international managers with
leadership experience from the field of Travel & Transport.


Flybondi plans expansion

Flybondi, the first ultra-low-cost airline in Argentina, celebrated one year since the beginning of its operations. The pioneer company in its category made an important investment in the country and was one of the main ones in the generation of Argentine jobs and indirect jobs, besides boosting local economies in the destinations to which it flies. By 2021 it aims to transport 10 million passengers, generating 2,000 new direct jobs and more than 25,000 indirect jobs.

In its first year of operation, Flybondi transported nearly 1 million passengers, of which more than 130,000 traveled for the first time by plane. In its first 8 months it managed to obtain 8% of the Argentine air market.

Currently the company offers flights to 15 destinations within the country and 2 international destinations, reaching to date 21 operational routes and 7 new routes already launched for sale that will begin to fly from March.

Craig Winfrey joins HAECO ITM

Craig Winfrey has joined HAECO ITM as Vice President Sales & Marketing, Aircraft Components. Winfrey will oversee the business areas of inventory technical management and component overhaul.

Prior to joining HAECO ITM, Winfrey was Head of Services, Strategy and Business Development at Bombardier Transportation. In this role, he was responsible for developing and executing the growth and evolution of Bombardier’s services strategies in Southeast Asia and India.

Based in Bangkok, Thailand, he oversaw the P&L for material services, fleet management offerings, digital innovation, component repair programmes, maintenance and operations, and total asset management.

Winfrey will be based at HAECO ITM’s office in Hong Kong, and will report directly to Daniel Stromski, Executive General Manager of HAECO ITM.

True Aero

Ryanair acquires 100% of Laudamotion

Laudamotion has confirmed that Ryanair has completed the purchase of 100% shareholding in Laudamotion in late December. Laudamotion now becomes a 100% subsidiary of Ryanair Holdings.

With the support of Ryanair Holdings, Laudamotion announces a series of growth initiatives, which includes: increasing Lauda’s fleet to 25 aircraft in summer ’19 (from 19 in S2018). Lauda has signed LOI agreements with a number of lessors which will increase its Summer ’20 fleet to 30 – all Airbus – aircraft, which will allow Lauda to grow its traffic from 4 million guests in year 1 to 6 million guests in year 2 (FY March 2020) to 7.5 million guests in FY March 2021.

This summer, Laudamotion will operate 4 bases as it grows in Vienna from 4 to 8 aircraft, Dusseldorf 7 aircraft, Stuttgart 3 aircraft, and Palma 2 aircraft. In winter 2019, the Vienna base will increase further to 11 aircraft. Laudamotion has released the first part of its winter 2019 flight schedules, offering passengers lower fares and more frequencies, from Vienna in particular. Details of up to 20 new routes from Vienna, Stuttgart, Dusseldorf, and Palma, will be announced in the next month or two once airport and handling negotiations have been successfully completed.

Furthermore Laudamotion announced details of up to 400 new jobs for pilots, cabin crew, and engineers across its 4 bases. It also unveiled details of its new Head Office (at Concorde Business Park), which it will move into in March 2019.


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