airBaltic Looks for Potential New Investor

Latvian airline airBaltic has mandated global investment bank Greenhill to evaluate financing options for the future development of the airline. Consequently, one of these financing options is the search for a potential new investor. Martin Gauss, Chief Executive Officer of airBaltic, stated that the company “…improve(d) its performance whilst several airlines left the market. In order to follow the growth strategy outlined …airBaltic requires additional financing for …future development… ” Gauss also stated that airBaltic is looking forward to working with Greenhill’s. Gausse referred to Greenhill’s as “an experienced financial adviser on potential options.”

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Norwegian to Boost Liquidity by Selling Two A320neo Aircraft

Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA, recently signed an agreement to sell two Airbus 320neo aircraft. Delivery will take place during February 2019. The transaction will increase the Company’s liquidity by US$26 million after repayment of debt. Subsequently, the sale will have a positive equity effect. Debts will be repaid and the company’s liquidity strengthened with the sale proceeds. The sale is in line with the Company’s strategy of leveraging the scale built up over the last few years. Additionally, the company’s focus has since changed focus from growth to profitability. This sale reflects that new Read more

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LGSTX Services Acquires TriFactor Distribution Solutions

Air Transport Services Group, said its subsidiary, LGSTX Services, has acquired TriFactor Distribution Solutions, a privately held material handling systems integrator based in Lakeland, FL. This acquisition provides a number of strategic benefits combining operational strengths and expanding complementary services between the companies. The services of the combined LGSTX/TriFactor businesses will be marketed nationwide as part of the comprehensive set of ATSG solutions. Material handling support and engineering design services will be offered from multiple locations, including Wilmington and Lakeland, providing systems integration, custom design, installation and maintenance of supply chain solutions. Customized turnkey offerings include: conveyor systems, warehouse storage Read more

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Shareholders object as flybe agrees discount sale to Virgin Atlantic-led consortium

A group of shareholders led by investment group Hosking Partners is looking to derail Exeter, U.K.-based flybe’s intention to sell to the Virgin Atlantic-led consortium Connect Airways at what is seen to be a heavily discounted price of one pence (13 cents) per share. Hosking partners is looking to oust flybe Chairman Simon Laffin with industry veteran Eric Kohn who told the BBC this morning: “I have been tasking to look at what went wrong over the last year especially and investigate what looks like a very unusual transaction.” He claimed that the investment bank advising Flybe turned away other Read more

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WestJet reports fourth quarter and full year results

WestJet has reported its fourth quarter and year end results for 2018, with full year net earnings of CA$91.5 million. This compares with net earnings of CA$279.1 million for the full year 2017. In the fourth quarter of 2018 the airline achieved net earnings of CA$29.2 million compared with net earnings of CA$47.8 million in the fourth quarter of 2017. Revenue in the fourth quarter amounted to CA$1,193.3 million up 6.6%, while full year revenue increased 5% to CA$4,733.5 million.

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Germania goes bust as low-cost carriers struggle

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Berlin-based budget carrier Germania Fluggesellschaft mbH, trading as Germania, has filed for bankruptcy, citing fuel prices and currency fluctuations as the principal causes and ceasing all operations with immediate effect. “We ultimately failed to successfully complete our financing efforts to meet short-term liquidity needs,” said managing director Karsten Balke, adding: “We very much regret that, as a consequence, we had no choice but to file for bankruptcy.” The privately owned airline was founded in 1978 and over recent years had changed its operating strategy from charter operations to scheduled flights, expanding from carrying 2.5 million passengers in 2009 to over Read more

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Qantas Buys 19.9% Stake in Alliance Airlines

The Qantas Group has taken a new shareholding position in an industry-leading carrier. Qantas has announced it will buy a 19.9% stake in Alliance Airlines, costing AU $60 million. This indicates an average share price of AU$2.40 per share. Alliance Airlines is a major service provider to the Australian resources sector. Consequently, Alliance creates continued travel demand to Western Australia and Queensland. Alliance is a profitable firm with great leadership and organization and has long been a regional service provider for Qantas in Australia. Furthermore, Qantas intends to take a larger shareholding in the future, if they receive regulatory approval Read more

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Amended and Extended Capacity Purchase Agreement Between Air Canada and Chorus Aviation Finalized

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Air Canada and Chorus Aviation, the parent company of Jazz Aviation (Jazz), finalized their Capacity Purchase Agreement (CPA) this week. Air Canada and Chorus Aviation have confirmed that all conditions have been met, and that the amended and extended CPA can proceed as planned. The improved CPA, retroactive as of January 1, was announced on January 14, 2019, and will extend until December 31, 2035. As part of the amended and extended CPA, Air Canada also made a CA $97.26 million equity investment in Chorus. Chorus gave Air Canada 15,561,000 Class B Voting Shares in Chorus capital as part of Read more

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Magnetic MRO issued bonds in nominal value of €8 million

Magnetic MRO, a global provider of Total Technical Care for aircraft operators and lessors, issued bonds in total aggregate value of €8 million. The company has submitted an application to Nasdaq Tallinn Stock Exchange Listing & Supervisory Committee for listing the bonds on the multilateral trading facility First North. Capital raised with the bond issue will be used for acquiring a competitor operating in the same industry and further expanding Magnetic MRO’s business. Magnetic MRO has seen rapid growth fuelled by banks and private equity funds. Capital markets are seen as a strategical step to secure the funding of next Read more

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India’s debt-ridden Jet Airways handed lifeline by Etihad

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With current debts of approximately US$1.14 billion resulting mainly from fierce competition, high oil prices and the depreciation of the rupee, India’s Jet Airways has agreed to the majority of terms laid down by Gulf carrier Etihad Airways (Etihad) in a much-needed financial bail-out and company ownership restructuring. Currently, Etihad holds a 24% stake in the airline which will increase to 40%, while current 51% majority shareholder Naresh Goyal will reduce his stake to 22% and step down from the board. Jet Airways holds approximately one-sixth of the burgeoning Indian aviation market but owes money to banks, aircraft vendors and Read more

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