Category: Leasing News (Page 6 of 7)

Embraer E195’s Make Vietnam Debut with Bamboo Airways

September 29, 2020 / WIL BALDWIN

Two Embraer E195s have commenced operations in Vietnam with Bamboo Airways, offering the first jet service to Con Dao from Hanoi, Vinh and Hai Phong. Con Dao Island and the surrounding National Park is an area of outstanding natural beauty 1400km (760nm) from the capital Hanoi, off the southern coast of Vietnam. The popular tourist destination, featuring an archipelago of 16 islands, is currently only served by turboprop aircraft due to its short runway, light pavement, and lack of fuel provision.

The Embraer E195s join Bamboo Airways’ fleet on a wet-lease agreement with Denmark based Great Dane Airlines, adding to the growing number of E-Jet operators in the Asia Pacific region.

“Bamboo Airways is proud to offer jet-operated flights to Con Dao with the E195s,” said Mr. Dang Tat Thang – Executive Vice Chairman of Bamboo Airways. “The aircraft’s short runway performance makes it an ideal aircraft for flights to and from Con Dao. The two by two seating will offer our passengers a high level of comfort in a modern, spacious aircraft, including the one-of-its-kind Business Class on the route to Con Dao.”

“Congratulations to Bamboo Airways on this strategic move. The E-Jets will give them great flexibility both in performance as well as in economics,” says Raul Villaron, Vice President, Asia Pacific for Embraer’s commercial aviation unit. “The E195’s fuel efficiency and economics enables Bamboo Airways to cost effectively manage fluctuating demand and operate lower density routes with the right sized aircraft. We welcome Bamboo Airways to the Embraer family and our global team are here to support them.”

Bamboo Airways is the first to operate direct flights to Con Dao from three cities; the capital Hanoi, Hai Phong city in the North and Vinh city in the central area. There will be two flights a day on the Hanoi – Con Dao route and daily flights from Hai Phong and Vinh to Con Dao in the initial phase. Bamboo Airways are operating the aircraft in a comfortable single class configuration with 118 seats.

Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers from all over the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,600 aircraft have been delivered. Today, E-Jets are flying in the fleet of more than 80 customers in some 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

TAROM Takes Delivery of First of Nine ATR 72-600

February 19, 2020 / WIL BALDWIN

TAROM, Romania’s national flag carrier, today took delivery of its first ATR 72-600 aircraft, the market-leading product of the world’s number one regional aircraft manufacturer. With a brand new livery, this aircraft is the first of a leasing contract with leading regional aircraft lessor NAC, for nine ATR 72-600.

TAROM has been very successful in its domestic market operations by using ATR aircraft – both ATR 42‑500 and ATR 72-500 – to compete with low cost carriers. When this major fleet upgrade is completed, by the end of 2020, the Romanian carrier will offer an additional 330,000 seats every year, at the same operating cost as its previous seat level, improving short haul connectivity in Romania. With ATR 72-600 burning 40% less fuel and emitting 40% less CO2 than similar-sized regional jets, TAROM will support the development of local and more isolated communities in a responsible way, while further consolidating their position in the market.

TAROM Chief Executive Officer George Barbu said: “We are looking forward to starting operations with our brand new ATR 72-600, the only aircraft on the regional market to meet our ambitious targets in terms of efficiency, modern technology and environmental performance. We are going to be able to develop new routes and increase frequency and seat availability, whilst offering the highest levels of comfort and technology.”

NAC Chairman, Martin Møller added: “The economics of the ATR 72-600, its modernity, passenger comfort and flexibility, along with proven environmental credentials make it an attractive asset, for both lessors and airlines. We thank TAROM for the confidence they have placed in NAC and we look forward to strengthening our relationship in the future.”

Stefano Bortoli, Chief Executive Officer of ATR commented: “Renewed confidence from a loyal customer is the best possible endorsement for an aircraft manufacturer. Especially when the decision is made after a vigorous evaluation of the existing solutions on the market – we know that our product is working for our customers. All regions deserve the same opportunity to be part of a connected world and ATR aircraft show unrivalled performance in connecting people and businesses responsibly.”

TAROM and ATR have been working together for 20 years. This major fleet upgrade will also enable the airline to benefit from state-of-the-art avionics, including glass cockpit, LPV and V-NAV capabilities, for safe, flexible and efficient operations.

Lessor BBAM Orders 3 Boeing 737-800 Converted Freighters

February 10, 2020 / WIL BALDWIN

SINGAPORE, Feb 11 (Reuters) – Boeing Co said on Tuesday that lessor BBAM had ordered three 737-800 converted freighters to serve the growing e-commerce market and express sectors of the air cargo market.

The planes to be converted will come from BBAM’s existing fleet. “This agreement shows how we can serve our customers by delivering efficient and reliable airplanes and a portfolio of services that extracts value throughout the life of those jets,” said Ihssane Mounir, Boeing’s senior vice president of Commercial Sales and Marketing.

Boeing also said it would inaugurate a 737-800 passenger to freighter conversion line in China this summer.

The new line will be at Guangzhou Aircraft Maintenance Engineering Company Ltd (GAMECO), a joint venture between China Southern Airlines Co Ltd and Hutchison Whampoa.

(Reporting by Jamie Freed; Editing by Himani Sarkar)

Avolon CEO Says Green Airlines Should Pay Less to Lease Planes

January 20, 2020 / WIL BALDWIN

DUBLIN, Jan 20 (Reuters) – Airlines with the best environmental scores should pay less for leasing aircraft than more polluting competitors, the head of one of the world’s top leasing companies said on Monday.

The radical proposal from Dublin-based Avolon comes as aviation firms face mounting scrutiny over climate policies not only from environmental groups but also investment funds that monitor Environmental, Social and Governance (ESG) performance.

Avolon, one of the top three aircraft lessors, claims to have one of the industry’s youngest and most efficient fleets.

“But that narrative is not good enough for the next 1, 2, 3 or 4 years,” Chief Executive Domhnal Slattery warned.

“More and more of our major bond investors are keen to understand what our ‘E’ strategy is within ‘ESG’. We in turn are keen to understand when underwriting our airline credits what their ‘E’ strategy is,” he told Reuters.

Slattery predicted that lessors, which depend heavily on access to funds to run their capital-intensive businesses, would in future exert more pressure on airlines.

“You could see over time that airlines that have a better environmental score could get lower lease rates,” he said.

Click the link to read the full story!

https://finance.yahoo.com/news/avolon-ceo-says-greener-airlines-195857989.html

Air Niugini Delays Delivery of Four 737 MAX Jets Until at Least 2024

January 20, 2020 / WIL BALDWIN

A Boeing 737 Max aircraft taxis the runway at the Renton Municipal Airport in Renton

SYDNEY (Reuters) – Papua New Guinea carrier Air Niugini has updated its contract with Boeing Co <BA> to delay the delivery of its four 737 MAX jets on order until at least 2024, the airline’s chief executive said on Tuesday.

The carrier had been due to receive its first 737 MAX this year.

Air Niugini Chief Executive Alan Milne told Reuters the delay would give the airline more time to complete a broader review of its fleet plans, including a replacement for its smaller Fokker jets.

“This will then determine if the MAX is still appropriate for Air Niugini, or whether another Boeing product would better suit as a replacement for the 737/767,” he said, in reference to older models in the airline’s fleet.

Milne said it was possible the 737 MAX orders could be switched to the smaller Embraer SA <ERJ> E2 family if Boeing’s deal to buy the bulk of the Brazilian planemaker’s commercial division closes.

“Air Niugini is a valued Boeing customer and we are working closely with the airline to meet its evolving fleet requirements,” a Boeing spokesman said. “Unfortunately, we do not disclose ongoing customer discussions and have no further comment.”

Some other Boeing customers, including Malaysia Airlines, Virgin Australia Holdings Ltd <VBHLF> and Norwegian Air Shuttle ASA’s <NWARF> leasing arm have also postponed the delivery of 737 MAX jets since the model was grounded globally last March after two fatal crashes.

Boeing confirmed on Monday that it has temporarily halted production of the 737 MAX in Washington State in recent days. The company had said in December it would halt production at some point this month.

(Reporting by Jamie Freed; Editing by Paul Simao and Sam Holmes)

ATR Delivers First Ever Green Financed Aircraft

December 21, 2019 / WIL BALDWIN

First of five new 72-600 orders by Braathens Regional Airlines

ATR, world number one regional aircraft manufacturer, today delivered the first ever green financed aircraft to Swedish regional airline Braathens Regional Airlines, BRA. The aircraft is leased from Avation and is financed by Deutsche Bank. It is part of a new order for five 72-600s, all purchased by Avation from ATR and leased to BRA. Upon completion of the order in early 2020, the airline will itself operate an entirely ATR fleet, comprised of 15 ATR 72-600 aircraft.

Vigeo Eiris, one of the world’s leading independent agencies providing Environmental, Social and Governance (ESG) ratings, expressed the opinion that the project of replacing ageing regional jets with new ATR 72-600 aircraft is aligned with the Green Loan Principles (GLP) established by the Loan Market Association in 2018.

This first ever Green Financing of an aircraft confirms the high sustainable value of the modern ATR turboprop aircraft. The ATR 72-600 aircraft has a significant environmental advantage over regional jets and other turboprops emitting 40% less CO2. Turboprops are more efficient than jets on short sectors as they accelerate air using less power, so use less fuel.

BRA CEO, Geir Stormorken, remarked: “We have made a commitment to decrease our environmental impact and the ATR is an essential part of our strategy. With that as a goal, it simply makes sense to choose the most efficient aircraft. By replacing parts of our existing fleet of regional jets with ATR 72-600 aircraft we will emit 7,500 fewer tonnes of CO2 per aircraft, per year. We believe that aviation is an essential part of Sweden’s regional transport network and we look forward to showing our passengers and the Swedish public at large that there is a sustainable way of flying.”

Executive Chairman of Avation, Jeff Chatfield, commented: “As a lessor, it is essential for us to progress our fleet into new technology low carbon emission aircraft such as the ATR 72-600 which maintain their value over a long period. ATR is one of the best assets in terms of residual value retention in the business. BRA’s decision to consolidate their own operation around the ATR 72-600 aircraft type demonstrates their understanding of the regional aviation market and the importance of reducing carbon emissions. BRA is an airline that is leading the way in terms of striving to offer their passengers the best possible experience, whilst optimising operations and minimising environmental impact.”

“Deutsche Bank is proud to have played a key role in the first green financing of a commercial aircraft,” said Richard Finlayson, Deutsche Bank Head of Global Transportation Finance, Asia. “We’re hopeful that this leads the way for more sustainable financing activity in aviation, and increased adoption of lower carbon emission aircraft across the industry, to help make flying more eco-responsible.”

Stefano Bortoli, Chief Executive Officer of ATR, said: “It is only natural that the first Green Financing deal for a commercial aircraft would involve an ATR and BRA. Thanks to the innovation of the ATR design, it inherently benefits from its lighter fuselage and the efficiency of its turboprop, meaning it burns less fuel and emits less CO2. It also makes sense that BRA, the leading voice on responsible regional flying in Sweden, would upgrade its own fleet to an all ATR 72-600 one, benefitting from these advantages compared to its rivals. We are proud to launch Green Financing in commercial aviation and lead the way in terms of innovation and sustainable regional aviation. We are thankful to Avation for having the foresight and flexibility to establish the operating lease for this series of aircraft deliveries.”

About Braathens Regional Airlines
Braathens Regional Airlines, is one of Sweden’s leading domestic airlines, with a Swedish market share of 30 percent. Braathens operates 26 routes to 17 destinations and carries more than 2,2 million passengers annually. Braathens’ On Time Punctuality is outperforming all other airlines in the world. In 2016, 2017 and 2018, BRA was awarded as the airline with the most satisfied passengers in Sweden. The airline was formed in 2016 after consolidation of several domestic air carriers, but the company’s aviation DNA reaches back to 1946 when the very first airline of the Braathen family was founded, Braathens S.A.F.E.

Bain Capital To Invest In Atlas Air’s Aircraft Leasing Unit

December 18, 2019 / WIL BALDWIN

Investment firm Bain Capital Credit will invest an initial $360 million in a joint venture with Atlas Air Worldwide Holdings (NASDAQ: AAWW), a major provider of outsourced all-cargo aircraft operations and other aviation services, to lease freighter aircraft, the companies said Wednesday.

Under the agreement, Atlas’ leasing subsidiary Titan Aviation Holdings Inc. will contribute $40 million of equity towards the portfolio, which ultimately could have a value of $1 billion with additional commitments to acquire aircraft over the next several years. The number and type of planes to be acquired are still to be determined. Titan will identify and source aircraft, as well as provide lease-management services to the venture.

The new company will be called Titan Aircraft Investment, Dan Loh, Atlas’ vice president of investor relations, told FreightWaves. “The parties are working expeditiously to complete and implement all elements of the joint venture,” he said.

Since its inception in 2009, Titan has grown to become the third-largest freighter lessor globally by fleet value with over 30 aircraft and a book value of over $1.5 billion.

Titan provides aircraft to airlines, which put them under their own operating certificate and then fly, maintain and insure them. Contracts are usually long term.

Click the link for the full story! https://finance.yahoo.com/news/bain-capital-invest-atlas-airs-191045251.html

Fly Leasing Reprices and Extends 2012 Term Loan

November 25, 2019 / WIL BALDWIN

DUBLIN, Nov. 25, 2019 /PRNewswire/ — Fly Leasing Limited (FLY) (“FLY”), a global leader in aircraft leasing, today announced it has repriced its $385 million Term Loan. The interest rate on the amended loan is LIBOR plus 1.75%, a 0.25% margin reduction. Additionally, the maturity has been extended by more than two years from February 2023 to August 2025. In conjunction with the extension, FLY paid a one-time fee of 0.25% OID to the lenders.

FLY Leasing Limited logo. (PRNewsFoto/FLY Leasing Limited)

“FLY’s strong upward trajectory, combined with its significant deleveraging and recent Standard & Poor’s rating upgrade, created the momentum for the successful repricing of FLY’s largest debt facility. We anticipate annual cash interest savings of nearly $1 million,” said Colm Barrington, CEO of FLY. “We remain committed to reducing our borrowing costs while opportunistically extending debt maturities. FLY will continue to explore other opportunities to optimize its balance sheet and create value.”

EgyptAir Adds More Boeing 787s to Fleet as Dreamliners Deliver 23% Fuel Boost

November 18, 2019 / WIL BALDWIN

Egyptian flag carrier to lease two more 787-9 jets from leading lessor AerCap
Airline joins other operators in growing their Dreamliner fleet after achieving eye-opening fuel efficiency improvement

EGYPTAIR is growing its Boeing 787 Dreamliner fleet with an agreement to lease two more airplanes from AerCap, the airline announced today at the Dubai Airshow. The Egyptian flag carrier unveiled it had selected the super-efficient airplane to modernize its fleet during the last Dubai Airshow in 2017.

The carrier began operating the 787-9 this year, deploying the Dreamliner on new direct flights from its hub in Cairo to Washington, D.C., and other cities. EGYPTAIR says the 787s have delivered on the Dreamliner’s promise of unmatched efficiency, providing a 23-percent reduction in fuel consumption compared to the airplanes they replaced.

“The Boeing 787 Dreamliner has outperformed our expectations, helping us significantly reduce our fuel use and emissions, while bringing comfort to our passengers,” said Ahmed Adel, chairman and CEO of EGYPTAIR Holding Company. “We look forward to growing our network with additional 787-9 airplanes and flying more passengers to their destinations at an affordable cost.”

To maintain its fleet of 787’s, the carrier also announced agreements with Boeing this week that would provide EGYPTAIR with global access to critical aircraft components, including a Landing Gear Exchange and Quick Engine Change kit solutions.

EGYPTAIR joins other 787 operators in expanding its commitment to the Dreamliner program after experiencing the airplane in revenue service. More than half of all 787 customers have placed repeat orders for the airplane, helping the Dreamliner become the fastest-selling widebody airplane in history. The biggest 787 customer is Dublin-based AerCap with 117 airplanes owned and on order. AerCap will lease a total of eight 787’s to EGYPTAIR.

Speaking at the Dubai Airshow, AerCap CEO Aengus Kelly said, “AerCap is very proud to continue to support EGYPTAIR’s widebody fleet renewal program and sustainable growth ambitions. We thank our friends and partners at EGYPTAIR for their continued confidence in AerCap and we look forward to working with the EGYPTAIR and Boeing teams as these aircraft deliver.”

“EGYPTAIR has shown a strong commitment to growing its business in a sustainable and profitable manner and we are thrilled that the 787 Dreamliner is helping the airline realize their vision. There is no better endorsement of the 787’s efficiency, range and passenger comfort than an operator returning for more aircraft,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing, The Boeing Company. “Of course, this would not be possible without AerCap and its market-leading portfolio that gives carriers great flexibility in operating an optimized fleet.”

At 63 meters (206 feet) long, the 787-9 can fly 296 passengers, in a typical two-class configuration, up to 7,530 nautical miles (13,950 kilometers). The airplane is 6 meters longer than the original Dreamliner and is capable of carrying 48 more passengers with increased range. The 787 Dreamliner family has won more than 1450 orders from over 80 customers on six continents.

Warburg Pincus Sells Airline Services Firm Accelya to Vista

November 18, 2019 / WIL BALDWIN

LONDON (Reuters) – U.S. buyout fund Warburg Pincus said on Monday that it had clinched a deal to sell its European airline services firm Accelya to rival private equity fund Vista Equity Partners for an undisclosed amount.

The deal, which was first reported by Reuters, allows Warburg Pincus to fully cash out after backing the Barcelona-based company for the past two years.

The U.S. investment firm launched an auction process during the summer to find a new owner for the business which serves more than 200 airlines including British Airways, Lufthansa and EasyJet.

Warburg Pincus bought Accelya from French private equity firm Chequers Capital in 2017 and quickly tripled its revenues by merging it with Mercator, a Dubai-based travel services group in which the U.S. buyout firm had been an investor since 2014.

Vista Partners, whose portfolio is mostly focused on software companies, was recently vying to buy a majority stake in WPP’s (WPP) data analytics firm Kantar but lost it to Bain Capital.

Its Chief Executive Robert Smith said Accelya was “at the forefront of innovation and positioned to shape the airline and travel industry for decades to come.”

Accelya employs 2,500 employees across 24 offices in 14 countries and recently signed a long-term deal as the International Air Transport Association’s (IATA) technology partner.

Bank of America (B AC) and Evercore advised Warburg Pincus on the deal while Vista hired Goldman Sachs (GS) and Houlihan Lokey to work on the purchase.

Law firm Kirkland & Ellis and Simpson Thacher served as the legal advisors to Warburg Pincus and Vista, respectively.

Reporting by Pamela Barbaglia; Editing by Susan Fenton

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