Threat of jet repossession sees Avianca Brazil file for bankruptcy protection

Avianca ©AirTeamImages

Brazil’s fourth-largest carrier, Avianca Brazil, has cited the threat of repossession of aircraft as the reason why it had filed for bankruptcy protection, fearing that such an action would see it unable to continue operations. Currently 50 of its 58 aircraft are leased and recent negotiations with lessors have failed to find any common ground. Aircastle has confirmed in a disclosure with the U.S. Securities and Exchange Commission that it was moving to repossess 11 aircraft – one Airbus A330-200 and 10 A320s – on lease to Avianca Brazil. In return, Avianca Brazil is seeking legal protection to block the Read more

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Bombardier confirms it remains on track to achieve its 2020 financial objectives

Bombardier has released its 2019 business unit guidance and confirmed that it remains on track to achieve its 2020 financial objectives. The 2019 guidance reflects the anticipated closing of the sale of both Business Aircraft’s flight and technical training activities and the Q Series aircraft program as of September 30, 2019. For 2019, Bombardier is targeting revenues of US$18 billion or more, representing a year-over-year increase of approximately 10% over 2018 guidance. This growth is expected to be driven by: the entry-into-service of the Global 7500 aircraft, which is sold out through 2021; execution on Bombardier’s strong US$34-billion rail backlog, Read more

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Lufthansa Cargo invests in Berlin startup cargo.one

Lufthansa Cargo is stepping up its cooperation with startup cargo.one and has acquired a minority shareholding in the Berlin company. Lufthansa Cargo is thereby making the switch from early adopter to minority investor. Berlin-based cargo.one was founded in 2017. The startup has developed a platform for booking and marketing air cargo capacity. Through its focus on offering dynamic spot rates and enabling their booking, cargo.one is the first platform of its kind. Lufthansa Cargo already invested in a technology startup – Fleet Logistics – based in Portland, USA, back in early 2018. Founded in 2014, Fleet Logistics acts as an Read more

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MTU Aero Engines prospects for growth better than anticipated

MTU Aero Engines AG (MTU) has released at its Capital Market Day that: “In the short and long term, the prospects for growth in all business units are better than originally assumed” with net income to rise steadily along with further improvements in free cash flow. Commercial new engine business looks to be the fastest growing segment with a low-teen income increase, while engine parts’ revenue is expected to increase in the mid-to-high single-digit percentage range. Military business revenue is anticipated to increase by around ten percent. Commercial maintenance business should remain at the same high level as 2018. The Read more

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Aviation Capital Group announces closing of US$800 million senior unsecured notes offering

Aviation Capital Group (ACG) has reported the closing of its sale of US$800 million aggregate principal amount of senior unsecured notes, consisting of US$300 million aggregate principal amount of its 4.375% senior unsecured notes due 2024 and US$500 million aggregate principal amount of its floating rate senior unsecured notes due 2021. ACG intends to use the net proceeds from the Notes for general corporate purposes, including repayment of outstanding indebtedness and the purchase of commercial aircraft. The Notes are recourse only to ACG and are not guaranteed by any of ACG’s equity holders or subsidiaries, or any third party.

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Icelandair reverses plans to acquire WOW Air

WOW Air ©AirTeamImages

The future for Iceland’s low-cost carrier WOW Air looks bleak with Icelandair Group scrapping plans to buy out the struggling airline. Icelandair confirmed that conditions for the share purchase were “unlikely” to be filled by the company’s shareholder meeting November 30, 2018. WOW Air first took to the air in 2012 as a no-frills budget airline offering low airfares, but charged for carry-on luggage, food and drinks. However, escalating financial problems began to take their toll after a bond issuance in September, the Icelandic carrier struggling to deal with rising fuel costs. Subsequent to this, aircraft lessors and the company’s Read more

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Leonardo signs Term Loan Facility of €500 million

Leonardo Headquarter ©Leonardo

Leonardo has signed a new Term Loan Facility with a pool of domestic and international banks for the purpose of refinancing existing debt. The credit line amounts to €500 million and has a maturity of 5 years. It’s terms include the payment of 110 basis points above 6 months Euribor and the bullet redemption of a total amount at maturity. This credit line is in accordance with the terms and conditions of the Revolving Credit Facility (renogotiated on 2018 February), and is under English Law. Alessandro Profumo, CEO of Leonardo, commented: “The signing of this Term Loan Facility is a Read more

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AEGEAN Airlines reports 13% net earnings growth to €80.9 million

AEGEAN Air has announced 2018, 9-month results with consolidated revenue at €939.3 million, 5% higher than 2017. Pre-tax earnings rose 14% to €115.8 million and net earnings after tax were up 13% to €80.9 million. During the 9-month period to September 30, 2018, AEGEAN and its subsidiary Olympic Air, carried 10.8 million passengers, 6% more than the previous year, with 4.8 million in domestic and 6 million in the international network. Total passengers from/to Athens hub traveling on international routes increased by 12%. Load factor improved to 83.6% from 82.9% in 2017 as a result of efficient revenue and network Read more

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Safran shareholders meeting approves merger of Zodiac Aerospace into Safran with 99.88% voting in favor

Safran’s shareholders were invited to consider mainly the plan to merge Zodiac Aerospace into Safran at a meeting on November 27, 2018. All the resolutions submitted to the shareholders’ vote were approved. Following presentations by Safran of the merger plan and notably the reports of the merger appraisers concluding that the exchange ratio is fair, the shareholders approved notably the merger of Zodiac Aerospace into Safran with 99.88% voting in favor. With the approval at the meetings on November 27, respectively of Zodiac Aerospace and Safran shareholders, all the conditions precedent have been satisfied. Therefore, the merger will complete on Read more

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DAE increases bond repurchase program by US$300 million

Dubai Aerospace Enterprise (DAE) has released that its Board of Directors and Shareholders had authorized an additional US$300 million for bond repurchases to be conducted through open market transactions. To date, DAE has repurchased US$295 million of principal amount of its publicly traded bonds under the previous authorization of US$300 million. DAE Chief Executive Office Firoz Tarapore said: “The current trading levels of our bonds are not consistent with our current credit ratings, strong financial performance or our projected ratings trajectory. We continue to generate cash and capital at a rate that allows us the flexibility to remove inefficient components Read more

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