Qantas to acquire Alliance Aviation

Qantas has reached an agreement to fully acquire Australian-based operator Alliance Aviation ©AirTeamImages

Qantas has reached an agreement to fully acquire Australian-based operator, Alliance Aviation Services (Alliance), enabling the national carrier to better serve the growing resources sector. The agreement, which is subject to a vote from Alliance shareholders and competition clearance, would see Alliance become a wholly owned part of the Qantas Group. Alliance has a fleet of 70 jet aircraft that seat up to 100 people each, making them well suited to charter operations. Between these charter services and a small number of passenger routes that overlap with large mine sites, Alliance accounts for around 2% of the total domestic market. Read more

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Airbus to increase A320 production rate and will grow its footprint in Mobile, U.S.

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Airbus has announced that commercial aircraft production for the A320 family is progressing towards a monthly rate of 65 aircraft by summer 2023, in a complex environment. Following an analysis of global customer demand as well as an assessment of the industrial ecosystem’s readiness, the company is now working with its suppliers and partners to enable monthly production rates of 75 in 2025. This production increase will benefit the entire global industrial value chain. Airbus will meet the higher production rates by increasing capacity at its existing industrial sites and growing the industrial footprint in Mobile, US, while investing to Read more

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Sanctions see Avolon forced to record US$304 million impairment for Russian planes

Irish lessor Avolon, which has ten leased jets still trapped in Russia, has recorded a first-quarter US$304 million impairment to cover the full financial impact. “While we continue to make every effort to recover these assets, we are recognising the full impairment this quarter, putting the financial impact of Russian sanctions firmly behind us,” Avolon’s Chief Executive Dómhnal Slattery said in a statement. The EU sanctions came into effect on March 28, as a consequence of Russia’s attack on Ukraine, after which all aircraft lease contracts with Russian carriers had to be cancelled. Consequently, over 400 leased aircraft, worth approximately Read more

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Chorus Aviation completes acquisition of Falko Regional Aircraft

Chorus Aviation (Chorus) has completed its acquisition of Falko Regional Aircraft Limited (Falko), as previously announced on February 27, 2022. This acquisition transforms Chorus into a premier full-service provider in regional aviation with unique capabilities to maximise value at every stage of an aircraft’s lifecycle. The completion of this transaction establishes Chorus as one of largest aircraft lessors focused solely on investing in the regional aircraft leasing space and results in a portfolio of 348 regional aircraft with an aggregate value of approximately US$4.5 billion (£3.6 billion) which are owned, managed, and/or operated by Chorus subsidiaries. As contemplated by the Read more

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Spirit rejects US$3.6 billion offer, JetBlue now considering a hostile takeover bid

Spirit Airlines ©AirTeamImages

Spirit Airlines (Spirit) has rejected an offer of US$3.6 billion, US$33.00 per share, made by ultra-low-cost carrier JetBlue at the beginning of April this year. This offer is appreciably higher than the US$2.9 billon, then worth US$25.83 per share, cash and stock offer from Frontier Airlines (Frontier), announced in February this year. Spirit has chosen to continue negotiations with Frontier on the basis it considers the JetBlue merger would not get past antitrust regulations and therefore it is not worth considering. As a counter to this, JetBlue has offered a US$200 million ‘compensation package’, US$1.80 per share, if the deal Read more

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Embraer and Aernnova conclude strategic partnership agreement in Évora

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Embraer and Aernnova have concluded the strategic partnership agreement announced in early 2022. Therefore, Aernnova now owns all shares of Embraer Metálicas and Embraer Compósitos, in an investment totalling approximately US$174 million. For Embraer, this partnership is another opportunity to increase the production capacity of these two units, since besides supplying components for the company’s commercial, executive aviation and defence areas, there is the expectation of an increase in the production of components for other global aeronautical manufacturers. This implies more jobs in this inland region of Portugal, as well as a potential increase in exports. Thus, the factories in Read more

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Southwest Airlines reports first-quarter net loss of US$278 million

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Southwest Airlines has reported its first-quarter 2022 financial results. The company posted a net loss of US$278 million, excluding special items, a net loss of US$191 million down 8.8% compared with first-quarter 2019. Cash provided by operations was US$1.1 billion. The company was encouraged by the sharp rebound in revenue trends in March 2022, despite US$430 million of headwinds experienced during first quarter 2022. Approximately US$380 million of the operating revenue headwinds related to softness in bookings and increased passenger cancellations in January and February 2022 associated with the Omicron COVID-19 variant, which is higher than the company’s previous estimate Read more

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Embraer’s 1Q 2022 earnings reveal narrowing net loss

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Embraer’s first-quarter 2022 earnings have reaffirmed the company’s guidance and show a clear narrowing of its net loss. The Brazilian planemaker delivered 14 jets in the first quarter, of which six were commercial aircraft and eight executive jets (six light and two mid-size). The firm order backlog ended 1Q22 at US$17.3 billion (+US$0.3 billion versus 4Q21), the highest quarter backlog since 2Q18, driven by solid order activity. Revenues reached US$600.9 million in the quarter, down 26% compared to 1Q21, with almost one month of production shut down due to system and legal reintegration of Commercial Aviation in January. In contrast, Read more

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MTU Aero Engines starts 2022 with higher revenue and earnings

MTU Aero Engines AG (MTU) generated revenue of €1,180 million in the first quarter of 2022. That was 19% more than in the prior-year period (1-3/2021: €989 million). The operating profit was 52% higher at €131 million (1-3/2021: €86 million). The adjusted EBIT margin was 11.1%, compared with 8.7% in the first quarter of 2021. Net income rose by 60% from €58 million to €93 million. In the first quarter of 2022, MTU recorded the strongest revenue growth in the military engine business, where revenue rose by 25% to €108 million (1-3/2021: €87 million). “That reflects the postponement of EJ200 deliveries from the fourth quarter of 2021 to Read more

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Boeing reports first-quarter results

Boeing has reported first-quarter revenue of US$14.0 billion, driven by lower defence volume and charges on fixed-price defence development programmes, partially offset by commercial services volume. GAAP loss per share of (US$2.06) and core loss per share (non-GAAP) of (US$2.75) also reflect US$212 million of pre-tax charges for impacts of the war in Ukraine. Boeing recorded operating cash flow of (US$3.2) billion. Commercial Airplanes first-quarter revenue of US$4.2 billion decreased slightly, primarily due to timing of wide-body deliveries, partially offset by higher 737 deliveries. Operating margin of (20.6)% also reflects abnormal costs and period expenses, including charges for impacts of the war Read more

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