Tag: a320 (Page 11 of 15)

French Official Says ‘Positive Signs’ in Airbus-China Talks

March 14, 2019 / WIL BALDWIN

NAIROBI (Reuters) – There are encouraging signs that European planemaker Airbus is closing in on a long-negotiated deal with China for dozens of new narrow-body jets, an aide to French President Emmanuel Macron said on Thursday.

The official said there were hopes Airbus would nail down the multibillion-dollar order when President Xi Jinping visits Europe later this month, but acknowledged there would unlikely be confirmation until the eleventh hour.

“The talks are ongoing,” the official said. “It will be difficult to know for sure until the day before, but the signs are positive.”

China has become a key hunting ground for Airbus and its leading rival Boeing, thanks to surging travel demand, but the outlook has been complicated by Beijing’s desire to grow its own industrial champions and, more recently for Boeing, the U.S.-China trade war.

Macron unexpectedly failed to clinch the Airbus order during a trip to China in early 2018 and the French government and Airbus have been working since to salvage it.

Macron said at the time that China would buy 184 A320 narrow-body jets, an order worth $18 billion at list prices.

The Elysee Palace official also said Airbus was discussing a new order with Ethiopian Airlines. The official gave no details on the size of the potential new Ethiopian order but cited the long-range A350, a model which Ethiopian already operates, and the single-aisle A320 jet as aircraft of interest to the airline.

Macron and Ethiopia’s Prime Minister Abiy Ahmed discussed the negotiations during Macron’s visit to Addis Ababa on Tuesday, two days after an Ethiopian Airlines Boeing 737 MAX 8 crashed after taking off, killing all 157 people on board.

Industry analysts played down a possible link between any current negotiations and Sunday’s crash. Ethiopian has been undertaking a major fleet expansion and regularly talks to the market, they said, adding that order talks take time.

(Reporting by John Irish; Writing by Richard Lough; Editing by Mark Potter)

Avianca Brasil to Sell Some Assets to Azul

March 11, 2019 / WIL BALDWIN

SAO PAULO, March 11 (Reuters) – Brazilian airline Azul SA said on Monday it intends to pay $105 million for certain assets held by Avianca Brasil, which was headed to court to face aircraft lessors as it seeks to keep operating planes despite mounting late payments.

Azul said the non-binding purchase agreement would involve 70 pairs of slots, which grant airlines the rights to operate regular flights between airports.

Azul already operates two Airbus A320 planes that were previously used by Avianca Brasil until they were repossessed in December due to outstanding payments. Under the agreement announced on Monday, Azul said it could end up operating up to 30 Airbus planes currently in use by its rival.

Azul did not disclose how it would be able to take over the leases and the airline did not immediately respond to a request for comment.

Avianca Brasil filed for bankruptcy protection in December in an attempt to stall aircraft lessors who had sued to repossess its fleet, two months after the carrier started missing payments on many of its aircraft.

The Avianca Brasil hearing scheduled for Monday in an appeals court will deal with a request from aircraft lessors, including Aircastle, that planes be repossessed as soon as possible, after a bankruptcy judge extended the airline’s control over the aircraft until at least April.

Since filing for bankruptcy, Avianca Brasil has secured a $75 million loan from hedge fund Elliot Management.

(Reporting by Marcelo Rochabrun and Ana Mano Editing by Chizu Nomiyama and Bill Trott)

Azul Linhas Aereas Embraer 195 at Curitiba Airport, Brazil

Azul Reports February 2019 Traffic

March 7, 2019 / WIL BALDWIN

SÃO PAULO, March 6, 2019 /PRNewswire/ — Azul S.A., “Azul”, (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of cities served and flight departures, announces today its preliminary traffic results for February 2019.

Consolidated passenger traffic (RPKs) increased 18.4% compared to February 2018on a capacity increase (ASKs) of 16.9% resulting in a load factor of 81.1%, an increase of 1.0 p.p. compared to the same period in 2018. Domestic load factor was 82.1% and international was 78.0%.

“We had a very strong February with domestic demand growing 24.4% resulting in a load factor of 82.1%, up 2.9 percentage points. We couldn’t be more excited about the results we are seeing from the A320neos. We now have 24 next-generation aircraft in our fleet and will continue to focus on accelerating our fleet transformation plan going forward,” says John Rodgerson, Azul’s CEO.

Year to date we continue to be the most on-time airline in Brazil with 85.6% of flights departing within 15 minutes of departure time, according to FlightStats.

About Azul

Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of cities served, offers 821 daily flights to 110 destinations. With an operating fleet of 123 aircraft and more than 11,000 crewmembers, the Company has a network of 220 non-stop routes as of December 31, 2018. In 2018, Azul was awarded best airline in Latin America by TripAdvisor Travelers’ Choice and by Kayak’s Flight Hacker Guide, and also best regional carrier in South America for the eighth consecutive time by Skytrax. Azul also ranked as most on-time airline in Brazil in 2018 according to FlightStats. For more information visit www.voeazul.com.br/ir

This traffic release includes estimates and forward-looking statements within the meaning of the U.S. federal securities laws. These estimates and forward-looking statements are based mainly on our current expectations and estimates of future events and trends that affect or June affect our business, financial condition, results of operations, cash flow, liquidity, prospects and the trading price of our preferred shares, including in the form of ADSs. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to many significant risks, uncertainties and assumptions and are made in light of information currently available to us. In addition, in this release, the words “June,” “will,” “estimate,” “anticipate,” “intend,” “expect,” “should” and similar words are intended to identify forward-looking statements. You should not place undue reliance on such statements, which speak only as of the date they were made. Azul is not under the obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. Our independent public auditors have neither examined nor compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements. In light of the risks and uncertainties described above, the future events and circumstances discussed in this release might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision based upon these estimates and forward-looking statements.

Aegean Airlines Sets 7-Year Bond Issue for Fleet Renewal

March 4, 2019 / WIL BALDWIN

* Aegean aims to raise up to 200 mln eur from sale

* Bond issue set for March 5-7

* Up to 147 mln euro to fund down payments for new planes

ATHENS, March 4 (Reuters) – Greece’s largest carrier Aegean Airlines will proceed with a sale of bonds on March 5-7 to raise up to 200 million euros ($226.86 million) for down payments on new Airbus aircraft and the construction of a new pilot training centre.

According to the public offering prospectus, about 30 percent of the issue will be allocated to retail investors, while 70 percent will go to “qualified investors”.

The seven-year bonds, each with a nominal value of 1,000 euros, will pay a semi-annual coupon. In Greece interest payments are taxed at 15 percent. Trading of the bonds on the Athens stock exchange will start on March 13.

Pricing will be determined via book building.

Aegean, a member of the Star Alliance airline group, will use 75 percent of the proceeds to partly finance down payments on new aircraft based on a deal with Airbus to renew its fleet of single-aisle planes and add capacity for future expansion.

Aegean picked Airbus in March last year for an order of up to 42 aircraft worth $5 billion in one of the biggest investments by a private Greek company since the country’s debt crisis erupted in 2010.

The down payments are due from the first quarter through to the last quarter of 2023 for new generation A320neo and A321 Airbus jets.

Deliveries of the new planes are expected to start in the first half of 2020 and conclude by the end of 2024.

Aegean has picked U.S. engine maker Pratt & Whitney to power the new A320neo aircraft and provide engine maintenance.

The carrier plans to use 14 percent of the proceeds or up to 27.5 million euros to build a new 12,000 square metre training centre with flight simulators for its flight crews at the Athens International Airport (AIA).

About 11 percent of the proceeds or up to 21.6 million will be used as working capital.

Piraeus Bank and Eurobank are the joint coordinators and bookrunners with Alpha Bank and Euroxx Securities the lead underwiters. Euroxx Securities was the issue adviser.

($1 = 0.8816 euros)

(Reporting by George Georgiopoulos; editing by Emelia Sithole-Matarise)

Cebu Pacific To Receive 12 Brand New Aircraft in 2019

January 31, 2019 / WIL BALDWIN

The Philippines’ leading airline, Cebu Pacific (PSE: CEB), is set to receive 12 brand new aircraft in 2019, to support the carrier’s expansion plans this year. The aircraft deliveries include six Airbus A321neo; five A320neo; and an ATR 72-600.

The A321neo boasts of 236 seats, 56 seats or 31% more capacity versus the A320. This will enable CEB to offer more seats and maximize airport slots. The aircraft is capable of operating routes in excess of 5,000 kilometers or fly up to seven hours, allowing the carrier to explore new destinations like India, Russia, northern Japan and other cities in Australia.

“2019 is the year we accelerate growth. On average, we will be receiving one brand-new aircraft per month which we can use to increase capacity in key markets or even launch new routes. For 2019, we expect capacity to grow from low to mid-teens,” said Lance Gokongwei, President and CEO of Cebu Pacific.

The CEB fleet is currently comprised of an Airbus A321neo, 36 Airbus A320, seven (7) Airbus A321ceo, eight (8) Airbus A330, eight (8) ATR 72-500, and 12 ATR 72-600 aircraft.

CEB boasts of one of the youngest fleets in the world, with an average fleet age of five (5) years.

“Cebu Pacific is expanding rapidly and plays an important part in the transformation of the Philippines’ aviation sector and has played a key role in supporting tourism, trade and business links between the Philippines, the Asia-Pacific and the Middle East,” said Jean Francois Laval, Executive Vice President for Sales in Asia of Airbus.

CEB is aiming to fly 200 million passengers by 2020, as it expands its route network and upgrades its fleet to bigger and more fuel-efficient aircraft. The carrier hit the milestone of 150 million passengers flown since inception in late 2017.

CEB and subsidiary Cebgo fly to 36 domestic and 26 international destinations, with over 107 routes spanning Asia, Australia, the Middle East, and USA.

From L-R: Manuel Antonio Tamayo, DOTr Undersecretary for Aviation; Lance Gokongwei, President and CEO of Cebu Pacific; Jean Francois Laval, Airbus Executive Vice President for Sales in Asia; His Excellency Nicholas Galey of the Embassy of France to the Philippines and Micronesia.

Story and image from http://www.cebupacificair.com/en-us

Boeing Reportedly Near $3.5 Billion 737 MAX Deal with ANA

January 28, 2019 / WIL BALDWIN

SEATTLE (Reuters) – Boeing Co is close to a deal worth $3.5 billion (2.66 billion pounds) at list prices to sell 30 Boeing 737 MAX jetliners to ANA Holdings, two people familiar with the matter said.

The deal is the first sale in Japan for the newest version of Boeing’s best-selling 737 family and marks a reversal for Europe’s Airbus, five years after the same airline became the first Japanese carrier to pick the competing A320neo.

It also coincides with negotiations between Washington and Tokyo over a potential trade pact, with Japan facing pressure from U.S. President Donald Trump’s administration to cut its trade surplus with the United States.

Boeing declined to comment. ANA could not immediately be reached for comment. A deal announcement could come as early as Tuesday, subject to the airline’s final approval, the sources said, speaking on condition of anonymity.

The Boeing 737 MAX and Airbus A320neo have amassed thousands of orders due to significant fuel savings offered by a new generation of engines.

But the world’s largest plane makers continue to wage fierce market battles, while Boeing has been chipping away at Airbus’s recent lead in the market for such medium-haul airplanes.

Trump and other top U.S. administration officials have criticized Japan over trade, asserting that Tokyo treats the United States unfairly by shipping millions of cars to North America while blocking imports of U.S. autos and farm products.

Japan says its markets for manufactured goods are open, although it does protect politically sensitive farm products.

In September, Trump and Japanese Prime Minister Shinzo Abe agreed to start trade talks in an arrangement that appeared, temporarily at least, to protect Japanese automakers from further tariffs on their exports, which make up about two-thirds of Japan’s $69 billion trade surplus with the United States.

Japan has insisted the new Trade Agreement on Goods would not be a wide-ranging free trade agreement, but U.S. Trade Representative Robert Lighthizer said last year he was aiming for a full free-trade deal requiring approval by Congress.

(Reporting by Eric M. Johnson in Seattle and by Reuters bureaus; Editing by GV De Clercq and David Evans)

SMBC Aviation Capital Orders 65 A320neo Aircraft

January 21, 2019 / WIL BALDWIN

Leading aircraft lessor SMBC Aviation Capital has boosted its total order book for the A320neo Family to 181 aircraft after signing a firm order for an additional 65 A320neo Family aircraft (15 A321neo and 50 A320neo). The order was finalised in 2018 and included in the year-end order figures.

In addition the agreement includes an upsizing of 15 A320neo from a pre-existing order to 15 of the largest member of the single aisle, the A321neos, taking SMBC Aviation Capital’s total for the type to 30. With its unbeatable seat mile cost, longer range and wider cabin, the A321neo offers airlines the flexibility to expand their networks using wide-body cabin products on new longer haul routes which were not previously possible with a single aisle.

“Demand for the latest technology aircraft has been strong both from our existing and new customers hence our decision today to proceed with this order. In the current environment, airlines are seeking more fuel efficient aircraft. The make-up of our order book positions us very well for the future to deliver on those needs. We have a strong relationship with Airbus and we look forward to working with them to continue to deliver for our customers long into the future,” said Peter Barrett, CEO, SMBC Aviation Capital.

The order for 65 is in addition to an earlier agreement for six A320neo made in March, bringing the total number of A320neo Family ordered in 2018 to 71.

“As one of the world’s leading aircraft lessors, SMBC Aviation Capital’s repeat order demonstrates its financial astuteness in making wise investments in the A320neo Family. In 2018, the direct leasing market represented over 30 per cent of our 800 worldwide deliveries – as much as Europe and the Americas combined,” said Christian Scherer, Airbus Chief Commercial Officer.

The A320neo Family incorporates the very latest technologies including new generation engines, Sharklets and cabin efficiency enablers, which together deliver 20 percent fuel savings by 2020. With more than 6,500 orders received from over 100 customers since its launch in 2010, the A320neo Family has captured some 60 percent share of the market.

Story and image from http://www.airbus.com

FRONTIER AIRLINES ADD NEW ROUTES FOR SUMMER

January 17, 2019 / WIL BALDWIN

DENVER, Colo. – Low-fare carrier Frontier Airlines continues to add routes, announcing five more non-stop flights from Branson Airport (BKG), Cleveland-Hopkins International Airport (CLE), and Nashville International Airport (BNA). Service begins in spring 2019. To celebrate the addition of these new flights, Frontier is offering introductory one-way fares as low as $29*, available now on flyfrontier.com.

Routes & Frequency:

Branson:

Cleveland:

Nashville:

Frequency and times are subject to change, so please check FlyFrontier.com for the most updated schedule.

Additionally, Frontier is expanding service between Chicago (ORD) and both Fort Myers and Tampa into the summer season with flights twice/week to Fort Myers and 3 times/week to Tampa.

“With this announcement, Frontier has now added 34 new routes for 2019 across the country,” said Daniel Shurz, Senior Vice President, Commercial for Frontier Airlines. “We continue to make air travel more accessible and affordable and we look forward to making it easier for people to fly, and for people to fly more often.”

Frontier is focused on more than low fares. The carrier offers customers the ability to customize travel to their needs and budget. For example, customers can purchase options a la carte or in one low-priced bundle called the WORKSsm. This bundle includes refundability, a carry-on bag, a checked bag, the best available seat, waived change fees and priority boarding.

The airline’s frequent flier program, FRONTIER Miles lets members enjoy many benefits as well as attain Elite status. Like the airline, FRONTIER Miles is family friendly, and the program makes it easy for families to enjoy the rewards together, including family pooling of miles. FRONTIER Milesis aptly named, because you earn one mile for every mile flown – no funny formulas at Frontier. If a customer travels a little or a lot, they will find FRONTIER Miles rewarding.

Frontier flies one of the youngest fleets in the industry, the Airbus A320 Family of more than 80 jet aircraft. With nearly 200 new planes on order, Frontier will continue to grow to deliver on the mission of providing affordable travel across America. Frontier’s young fleet also ensures that the company will continue to keep fares low and that customers will enjoy a pleasant and reliable experience flying with the airline.

Frontier wants its customers to have more options when they fly and there is no fee for reservation changes made 90 days or more from the travel date. If you need to make a change between 89 and 14 days from departure, the fee is only $49. Changes made 13 days or less from travel cost $119. When making a change, customers just pay any increase in fare that applies.

*About Intro Fare Offer:

Fares must be purchased by 11:59 pm Eastern time on Jan. 17, 2019 for nonstop travel. Travel is valid Tuesdays, Wednesdays, Thursdays, or Saturdays dependent on days of operation through June 13, 2019. The following blackout date applies, May 28, 2019. Fares are one-way and do not require roundtrip purchase.

Story and image from http://www.flyfrontier.com

Etihad Reaches Deal for Rescue of India’s Jet Air

January 14, 2019 / WIL BALDWIN

(Bloomberg) — Etihad Airways PJSC has agreed to lead a rescue of cash-strapped Jet Airways India Ltd. in a move that will see the Abu Dhabi-based carrier double its stake to 49 percent, according to television reports.

Etihad is in talks to lift its holding from the current 24 percent, India’s BTVI channel reported Monday, citing unidentified people familiar with the matter. CNBC-TV18 said that Jet founder Naresh Goyal’s stake could drop to 20 percent from 51 percent, and that he’ll stand down as chairman.

Shares of Jet Airways closed 16 percent higher in Mumbai, where it is based. The company ranks as India’s biggest full-service airline, but has failed to post a profit in nine of the past 11 fiscal years. Cash is running short as fare wars depress revenue and turbulent oil prices increase costs.

An increase in Etihad’s Jet stake would come at a time when the Persian Gulf carrier is cutting thousands of jobs and shrinking its fleet amid mounting losses from over-expansion and failed investments. India remains an attractive prospect because of the size of its travel market and the pace of growth.

Etihad said in an email that it does not comment on rumor or speculation.

Jet didn’t immediately respond to requests for comment, though it said in a filing earlier that it had made no decision requiring a stock-market disclosure. People with knowledge of the matter said last week that the airline is seeking funds from investors including Etihad.

The deal, if it goes through, will give the third-biggest Mideast carrier more say over Jet’s operations and its day-to-day management, with Goyal’s voting rights capped at 10 percent, BTVI said. Indian regulations cap airline ownership by foreign operators at 49 percent, and also prohibit them from taking control.

Etihad, which lost $3.5 billion over two years, last week scrapped orders for 10 Airbus SE A320neo aircraft and revealed plans to cut 50 pilot posts this month. Chief Executive Officer Tony Douglas has put the brakes on a costly bid to challenge bigger Gulf rivals Emirates and Qatar Airways, saying he’ll focused more on local needs rather than carrying passengers between continents.

–With assistance from Layan Odeh and Sam Nagarajan.

To contact the reporter on this story: Anurag Kotoky in London at akotoky@bloomberg.net

To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net, ;Anthony Palazzo at apalazzo@bloomberg.net, Christopher Jasper, John Bowker

For more articles like this, please visit us at bloomberg.com

Image from http://www.boeing.com

Avianca Brasil Lessor Set to Seize 20% of Airline’s Fleet

January 11, 2019 / WIL BALDWIN

SAO PAULO, Jan 11 (Reuters) – Lessor Aircastle is set to repossess 10 jets from Avianca Brasil, the country’s No. 4 airline, after a bankruptcy hearing on Monday, a source familiar with the matter said, potentially disrupting flights for thousands of passengers.

The 10 Airbus A320 planes represent more than 20 percent of Avianca Brasil’s current fleet, according to data provided by Brazil’s aviation regulator, raising doubts about the carrier’s ability to fly its full flight schedule if the aircraft are seized.

And it could lose more planes in the future. Lessor GE Capital Aviation Services and an affiliate are seeking to repossess 12 Airbus A320s from Avianca Brasil, according to James Luton, a GE spokesman.

When the airline filed for bankruptcy protections last month, the airline discussed the possible loss of 14 planes, which it said would affect 77,000 passengers over a three-week period.

A representative for Avianca Brasil declined to comment. The bankruptcy filing came after years of mounting losses and late aircraft payments.

Bankruptcy filings, while providing protection from creditors, do not cover leases, the source of the carrier’s entire 46-aircraft fleet.

Between the end of 2016 and September 2018, Avianca Brasil’s liabilities to aircraft lessors quintupled to 415 million reais ($112 million), according to the carrier’s financial statements.

Still, a Brazilian bankruptcy judge stayed a decision that would have allowed Aircastle to repossess the planes last month. That stay, however, expires on Monday.

Since the stay was issued, the source said, Avianca Brasil has not made any proposal to Aircastle that would have allowed the carrier to keep the planes. Avianca Brasil owes Aircastle more than $30 million, the source added.

The stakes are also high for Aircastle, as Avianca Brasil is its largest single customer, representing some 7 percent of its net book value, according to the lessor’s financial disclosures.

Avianca Brasil is separate from the better-known Avianca Holdings SA, which is based in Colombia. But they share the same owner, a family company owned in part by Bolivian-born airline entrepreneur German Efromovich.

United Continental Holdings gave the family company a $500 million loan last November.

Neither party has revealed why the loan was needed, but Efromovich has been sued for failure to repay his debts in the United States and Brazil in recent years.

($1 = 3.7138 reais)

(Reporting by Marcelo Rochabrun)

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