China Eastern Airlines looks to raise US$2.2 bn through share sale

China Eastern Airlines ©AirTeamImages

China Eastern Airlines, China’s second-largest carrier by passenger numbers has announced in a filing to the Shanghai Stock Exchange that it is looking to raise US$2.23 billion through a share sale. The revenue raised will be divided between asset acquisitions and increasing working capital. Approximately US$1.78 billion will be used to fund the acquisition of 38 aircraft which will be delivered between 2022 and 2024. The planes on order are four COMAC C919s, 24 ARJ21-700s, six Airbus A350-900s and four Boeing 787-9s which currently have a list value of US$4.38 billion. In addition, China Eastern Airlines will be looking to Read more

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Embraer and NAC sign first P2F conversion deal for up to ten E190F/E195Fs

Nordic Aviation Capital will become a launch lessor for Embraer's E-Jet P2F conversion ©Embraer

Nordic Aviation Capital (NAC), the regional aircraft leasing company, will become a launch lessor of Embraer’s E-Jet passenger-to-freighter (P2F) conversion. NAC and Embraer have reached an agreement in principle to take up to ten conversion slots for E190F/E195F aircraft, with first deliveries starting in 2024. Aircraft for conversion will come from NAC’s existing E190/E195 fleet. Norman C.T. Liu, President and CEO Nordic Aviation Capital, said, “We look forward to working with Embraer on developing an operator base for the E-Jet freighter as cargo conversions are a key element of our full-life cycle portfolio strategy for the future.” The conversion-to-freighter will Read more

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Staffing problems force IAG to scale back summer short-haul schedule

©British Airways had to cut back on the number of short-haul flights owing to staffing problems

 IAG, parent company to BA, Vueling, Iberia and Aer Lingus, has decided to cut back on an anticipated summer ramp-up in short-haul flights owing to staffing problems. As a result of the Omicron variant of the COVID-19 virus which has led to flight crew shortages, together with a general lack of ground staff, plus IT problems, multiple flights had already been cancelled during the first quarter of the year. This resulted in a first-quarter operating loss of €754 million, substantially missing average analyst forecasts of a €510 million loss, though the Group does expect to be operating profitably throughout the Read more

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Lufthansa eyes record summer for holiday travel after positive 1Q 2022 results

©Lufthansa

Despite a slow start to the year due to the Omicron variant of the COVID-19 pandemic, Lufthansa saw a noticeable increase in customer demand, particularly in March, for both holiday travel and also the business travel segment. Compared to the previous year, the Group more than doubled revenue to €5.4 billion (1Q 2021: €2.6 billion). Adjusted EBIT amounted to €-591 million, and a further noticeable improvement compared to the prior-year quarter, despite the effects of the pandemic (1Q2021: €-1.0 billion). The Adjusted EBIT margin increased to -11.0% (previous year: -40.9 percent). Net income of €-584 million was also an improvement Read more

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MTU CEO Reiner Winkler to step down

Reiner Winkler (l) and Lars Wagner (r)

After its Supervisory Board meeting on Wednesday, May 4, MTU Aero Engines AG (MTU) has announced that its CEO, Reiner Winkler, will be stepping down and leaving the company, for personal reasons, at the end of the year. “After more than twenty years in the management board of MTU, I now see the time has come to pass on my responsibilities. The company’s expected new growth phase and the excellent succession plan at the top of both the Supervisory and the Management Board appear to be a very suitable point in time. I am extremely thankful that I was allowed 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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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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Qantas places major Airbus aircraft order to shape its future

Qantas has confirmed its future Airbus fleet ©Airbus

Australia’s Qantas Group has confirmed that it will order 12 A350-1000s, 20 A220s and 20 A321XLRs. The news was announced at a ceremony in Sydney attended by Qantas Group CEO Alan Joyce and Airbus Chief Commercial Officer and Head of Airbus International, Christian Scherer. The A350-1000 was selected by Qantas following an evaluation known as Project Sunrise and will enable the carrier to operate the world’s longest commercial flights. These will include linking Sydney and Melbourne with destinations such as London and New York non-stop for the first time ever. Featuring a premium layout, the A350 fleet will also be Read more

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ST Engineering and United Airlines sign MOU for long-term airframe maintenance at Pensacola

Ground-breaking of MRO complex in Pensacola ©ST Engineering

The Commercial Aerospace business of ST Engineering, Mobile Aerospace Engineering and United Airlines (United) have signed a Memorandum of Understanding (MOU) at the MRO Americas 2022 conference in Dallas, Texas, U.S., that aims to have ST Engineering see part of United’s long-term airframe heavy maintenance needs move to the Pensacola International Airport in Florida, U.S. ST Engineering currently supports United’s Airbus A320 family out of its facility in Mobile, Alabama. Under the MOU, ST Engineering will extend its heavy maintenance support to the airline by servicing additional narrow-body aircraft at the airframe MRO complex that ST Engineering is constructing at Read more

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British judge sides with Airbus over cancelled Qatar Airways A321 order

After paint problems were discovered Qatar Airways grounded its entire fleet of 23 A350 aircraft ©AirTeamImages

Qatar Airways has failed in its bid to have a contract for 50 Airbus A321neos reinstated after Airbus revoked it as a consequence of the feud between the two companies over A350 safety issues which has been escalating over the past year. After paint problems were discovered on A350s that Airbus had delivered to Qatar Airways, under the guidance of Qatar’s Civil Aviation Authority, the Gulf carrier grounded its entire fleet of 23 of the jets and has subsequently refused to take delivery of three new A350s, the last time in April this year which Airbus then, as with the Read more

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