SMBC Aviation Capital posts full year results – defers 68 MAX aircraft deliveries

Aircraft leasing company SMBC Aviation has reported its results for the financial year ended March 31, 2020. The company reported profit before tax of US$364.5 million, an increase of almost 5.8% y/y. Total aircraft operating lease assets grew by 3.7% to US$10.6 billion – a lower than anticipated level of asset growth due to the grounding of the B737 MAX aircraft and Airbus A320neo delays. Core lease rentals increased by US$55.8 million to US$1.1 billion – a 5.5% increase. The company reported EBITDA of US$1.1 billion with EBITDA to interest coverage remaining strong at 3.6 times. SMBC will defer deliveries Read more

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Final two bidders in race to buy Virgin Australia revealed

Virgin Australia ©AirTeamImages

Deloitte, who was appointed as administrator when Virgin Australia went into administration at the end of April this year have announced that it has narrowed down five prospective purchasers for the struggling carrier to a final two candidates. Bain Capital and Cyrus Capital Partners, two “well-funded” U.S.-based private equity firms with “deep aviation experience” have been shortlisted according to Vaughan Strawbridge of Deloitte. “We will now spend the coming weeks facilitating in-depth bidder engagement with the stakeholders of the business and work closely with both preferred bidders in the lead up to binding final offers being received,” he said in Read more

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Avia Solutions Group to sell Baltic Ground Services Poland

Avia Solutions Group has decided to sell Baltic Ground Services Poland, a subsidiary of the Group’s family member, Baltic Ground Services (BGS). With flights being grounded during the pandemic and competition with the Poland’s state-owned service providers being high, Avia Solutions Group believes that the sale of Baltic Ground Service Poland is an optimal solution. The subsidiary constituted only 2.2% from total pro forma consolidated revenues of Avia Solutions Group PLC. BGS PL offers passenger and aircraft handling, into-plane fuelling and de-icing/anti-icing services and provides high-quality solutions to international customers.

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Thoma Bravo signs agreement to acquire Exostar

Thoma Bravo, a private equity investment firm focused on the software and technology-enabled services sector, has announced an agreement to acquire Exostar, a leader in trusted, secure business collaboration for the highly-regulated aerospace and defense, life sciences and healthcare industries. Thoma Bravo’s strategic investment is expected to help Exostar accelerate business growth and broaden its existing customer base. The transaction is subject to customary closing conditions and regulatory approvals. Terms of the transaction were not disclosed. Exostar’s unique platform creates trusted communities where companies can manage the complexity and mitigate the risks associated with collaborating with external partners. Thoma Bravo Read more

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Bombardier concludes sale of CRJ Series regional jet program to Mitsubishi Heavy Industries


Bombardier has closed the previously announced sale of the CRJ Series aircraft program to Mitsubishi Heavy Industries, for a cash consideration of approximately US$550 million, subject to post-closing adjustments and the assumption of liabilities by MHI related to credit and residual value guarantees and lease subsidies amounting to approximately US$200 million. Under the agreement, the Corporation’s net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately US$170 million, has been transferred to MHI. Through this sale, MHI acquires the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, including the related services Read more

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Embraer posts first-quarter 2020 net loss of US$292.0 million

Embraer delivered five commercial jets and nine executive jets (five light / four large) in the first quarter of 2020, and the company’s firm order backlog at the end of the quarter was US$ 15.9 billion. EBIT and EBITDA as reported were US$-46.9 million and US$9.3 million, respectively, yielding EBIT margin of -7.4% and EBITDA margin of 1.5%. This compares to EBIT of US$-15.2 million (-1.8% EBIT margin) and EBITDA of US$30.9 million (3.8% EBITDA margin) in the first quarter of 2019. The first-quarter results include special items due to the impacts of COVID-19: 1) US$22.2 million in negative fair Read more

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German government takes 20% stake in carrier as Lufthansa bailout is agreed


In return for a €9 billion (US$9.8 billion) bailout package, Germany’s flag-carrying airline Lufthansa will relinquish up to a 20% stake in the carrier to the German government. In addition, Lufthansa will have to relinquish over 24 of its take-off and landing slots at Frankfurt and Munich airports to new competitors. There will be a time limit of eighteen months set on the uptake of these slots and if no new competitor does so, then they will be offered to existing competitors. The package has been heavily negotiated with EU intervention and specific involvement of the EU Commission. “The scope Read more

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HEICO Corporation’s net income up 22% in first half of fiscal 2020

HEICO Corporation has reported that net income increased 22% to US$197.3 million in the first six months of fiscal 2020, up from US$161.1 million in the first six months of fiscal 2019. In the second quarter of fiscal 2020, net income decreased 8% to US$75.5 million as compared to US$81.8 million in the second quarter of fiscal 2019. Operating income increased 1% to US$219.2 million in the first six months of fiscal 2020, up from US$217.1 million in the first six months of fiscal 2019. In the second quarter of fiscal 2020, operating income decreased 9% to US$108.2 million, as Read more

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Air Canada announces pricing of Offering of Shares and Convertible Senior Notes

©Air Canada

Air Canada has priced both its previously announced underwritten marketed public offering of 30,800,000 Class A Variable Voting Shares and/or Class B Voting Shares of the Company at a price to the public of CA$16.25 per share, for aggregate gross proceeds of CA$500,500,000 and its concurrent marketed private placement of convertible senior unsecured notes due 2025 for aggregate gross proceeds of US$650,000,000. The Convertible Notes will bear interest semi-annually in arrears at a rate of 4.000% per annum and will mature on July 1, 2025, unless earlier repurchased, redeemed or converted. The initial conversion rate of the Convertible Notes is Read more

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Fiji Airways looks to defer aircraft payments and reduce staffing levels by over 50%

Fiji Airways ©AirTeamImages

Fiji Airways has announced that it will permanently cut its current staff levels by 51% while also negotiating with lenders and aircraft lessors to defer payments and, additionally, arrange further debt financing as the South Pacific carrier struggles with the fallout from the COVID-19 pandemic. The staff cuts equate to 758 employees, of which 78 are expatriate pilots and eight are expatriate executives. “The sad reality of prolonged flight suspensions means that we simply do not have work for a large segment of our workforce now, and for the foreseeable future,” Fiji Airways Chief Executive Andre Viljoen said in a Read more

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