Tag: NEO (Page 11 of 15)

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.

Air Lease Says Boeing Going ‘Full Speed Ahead’ on Midsized Jet

March 7, 2019 / WIL BALDWIN

(Reuters) – Boeing Co is indicating “full speed ahead” for a new midsized airplane in what would be the first all-new jet program for the world’s biggest planemaker in more than a decade, Air Lease Corp’s chief executive, John Plueger, said on Wednesday.

Boeing reiterated on Wednesday that it will make a decision in 2020 on whether to launch the plane, which aims to address the middle of the jet market between traditional narrowbody jets with one aisle and long-distance widebody planes. It can start seeking offers in 2019, subject to launch.

“Boeing is signalling full speed ahead but there’s still a lot to be decided in these programs,” Plueger said at a conference, noting the company had met with Boeing in Seattle on Friday.

In an emailed statement, Boeing said it is still working through the business case for the new jet, adding: “If we decide to offer the airplane and the market responds positively, we will proceed with a launch decision sometime in 2020.”

Air Lease, one of the largest aircraft lessors, said it sees interest in Boeing’s proposed mid-market aircraft from airlines, some of which are looking for longer range while others, such as Asian carriers, seek the lowest possible cost per seat kilometre.

Still, Boeing is taking a “thoughtful approach” to the potential project following a series of cost overruns and delays with its last jet program, the 787, and has yet to discuss possible pricing, Air Lease Executive Chairman Steven Udvar-Hazy said.

Air Lease will meet on Saturday with Airbus SE, which is preparing to counter the potential new jet by Boeing with a new version of its A321 and the larger A330neo.

While Boeing and Airbus have traditionally launched new jets alongside purchase commitments from airlines, interest by aircraft lessors like Air Lease is forming an increasingly important role in the decision-making process, industry sources have said.

Delta Air Lines Chief Executive Ed Bastian said on Monday that it is interested in a mid-market aircraft from Boeing to replace 200 757 and 767 aircraft over the next decade.

Last month, Rolls-Royce dropped out of the race to power Boeing’s planned jet, strengthening a leading position in the high-profile contest for a transatlantic venture involving General Electric Co and France’s Safran.

“Somebody had to drop out and the competition at this point is progressing normally,” Plueger said.

Pratt & Whitney is also a potential supplier for the new Boeing jet.

(Reporting by Tracy Rucinski in Chicago; Editing by Matthew Lewis)

Interest is rising for Boeing’s new 757 replacement jet!

Cathay Pacific in Talks to Buy Stake in HK Express Airways

March 5, 2019 / WIL BALDWIN

HONG KONG/SINGAPORE (Reuters) – Hong Kong flagship carrier Cathay Pacific Airways Ltd said on Tuesday it is in “active discussions” about an acquisition involving budget airline Hong Kong Express Airways Ltd, although an agreement has yet to be reached.

Such a deal would give Cathay exposure to the growing budget-travel market at a time when a lack of slots at Hong Kong International Airport has constrained its ability to follow peers like Singapore Airlines Ltd and Qantas Airways Ltd and set up its own budget brand.

The Hong Kong carrier has instead shifted some destinations from its main brand to its regional carrier, Cathay Dragon, as part of a transformation plan designed to cut costs and increase revenue. It has ordered 32 Airbus SE A321neos for Cathay Dragon.

Cathay said it had decided to go public about the discussions in response to media reports suggesting it may be in talks to acquire shares in Hong Kong Express Airways Ltd and full-service sister carrier Hong Kong Airlines Ltd from cash-strapped Chinese conglomerate HNA Group Co Ltd.

It did not detail the potential value of the transaction, nor the size of the stake it would hold. It said it would issue an additional statement when appropriate.

An analyst last year estimated to Reuters that HK Express could be worth about $300 million.

HNA and HK Express did not immediately respond to a request for comment.

A person with knowledge of the matter said the companies appeared close to reaching an agreement and noted Cathay’s parent Swire Pacific Ltd had historically taken majority stakes when making investments.

Cathay is not interested in Hong Kong Airlines because it has both similar routes and full-service positioning, the person said.

A second person with knowledge of the matter said Cathay had signed an exclusivity period for discussion but other parties remained interested in HK Express if a deal could not be reached.

Both sources spoke on the condition of anonymity as discussions are confidential.

ANTITRUST

Given Cathay’s dominance of Hong Kong’s aviation market, a deal could attract scrutiny from the competition regulator.

Some analysts have also expressed doubts about the likely benefits of any deal. Daiwa analyst Kelvin Lau said he did not see much value from the acquisition as the two airlines flew similar routes, but also because Cathay would need to undertake significant reform to add a budget wing.

Jefferies analyst Andrew Lee however said in a note to clients it would be “positive for Cathay Pacific” as it would give the airline greater access to a different passenger segment in the low-cost market.

FLYING HIGH

News of Cathay’s interest in HK Express comes just weeks after Hong Kong’s flagship carrier projected its annual profit at more than double analyst estimates, sending its shares surging nearly 9 percent.

Shares of Cathay have risen more than 19 percent so far this year, compared with an 8 percent fall in 2018. The airline’s shares jumped more than 3 percent on Tuesday morning.

Cathay has faced repeated questions from investors over the last few years about its failure to set up a budget carrier.

Chief Executive Rupert Hogg has said it would be difficult to do so until a third runway was completed at Hong Kong International Airport in 2024, opening up more slots.

“Our home-based airport is full at the moment, or largely full, and so it’s not a perfect place to develop a model from scratch,” he told CAPA Centre for Aviation last May.

HK Express operates a fleet of 25 A320 family aircraft to regional destinations around Asia, according to plane tracking website FlightRadar24.

Embattled HNA Group is more than a year into the process of unwinding a $50 billion acquisition spree that at its peak netted the company stakes in banks, fund managers, hotels, property and airlines, among other assets.

(Reporting by Donny Kwok in Hong Kong and Jamie Freed in Singapore; Additional reporting by Kane Wu in Hong Kong; Editing by Anne Marie Roantree and Stephen Coates)

Delta May Order 200 New Jets, Considers Alitalia Investment

March 5, 2019 / WIL BALDWIN

(Reuters) – Delta Air Lines fueled the appetite of planemakers on Tuesday after Chief Executive Ed Bastian said the airline planned to replace some 200 Boeing 757 and 767 aircraft over the next decade.

The plans come as the second largest U.S. airline seeks to grow internationally, though Bastian said at a conference that the company had not yet decided whether to invest in struggling Italian carrier Alitalia.

Atlanta-based Delta’s potential fleet order, which analysts say would be worth over $10 billion, could boost proposals by Boeing Co to launch a new plane in that segment while Airbus is preparing to counter with a new version of A321 and the larger A330neo.

Delta is “very interested” and in discussions with Boeing about its proposed new midsized airplane, known as the NMA, Bastian said. Boeing will decide in 2020 whether to produce the plane which industry sources say would have two aisles and seat seven across.

The plane aims to address the so-called middle of the jet market between traditional narrowbody jets with one aisle and long-distance widebody planes.

“Hopefully they’ll decide to go,” Bastian said.

Delta is already in the process of replacing one-third of its mainline fleet, one of the largest and oldest among U.S. airlines, in the next five years.

Delta shares were up 2.5 percent at $50.03 in afternoon trading after Bastian said spring and summer travel demand was solid.

Delta Air Lines reveals their first A220 in Atlanta, Georgia at the TechOPS engine shop at Hartsfield Jackson International airport on Monday October 29,2018. (Chris Rank/Rank Studios)

ALITALIA INVESTMENT?

Bastian said it was too early to decide whether to invest in Alitalia, which was put under special administration in 2017 after workers rejected the latest in a long line of rescue plans, leaving the Italian government seeking a buyer to save the airline.

Italy’s state-controlled railway Ferrovie dello Stato (FS) said last month it would start negotiations with Delta and EasyJet Plc to draft a rescue plan, the third in a decade, for the struggling airline.

Delta executives have held talks in Rome in recent weeks, according to Italian industry sources, but doubts remain whether an outside investor would be willing to take a minority stake in the strike-prone airline.

Bastian said that the numbers being thrown around for Alitalia are “pretty large” and “not the kind of numbers that we’re considering, just to quell any concerns.”

Still, he said it makes sense to consider an investment in Italy, an important market for U.S. consumers, and noted that Delta’s global growth over time will skew toward international rather than congested domestic markets.

That growth could come through direct investments in overseas carriers.

“You can’t actually own partner carriers so you have to find ways to influence them beyond just a commercial contract as a partner, and what we have found is that by making an investment into these businesses we can get actually inside the board room and help to start shape the strategy.”

(Reporting by Tracy Rucinski in Chicago, additional reporting by Tim Hepher in Paris; Writing by Nick Zieminski; Editing by Phil Berlowitz and Lisa Shumaker)

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)

VietJet to Sign Major Boeing Deal During Trump-Kim Summit

February 22, 2019 / WIL BALDWIN

HANOI (Reuters) – Fast-growing Vietnamese budget airline VietJet Aviation JSC is expected to sign a major jet deal with Boeing Co on the sidelines of next week’s Trump-Kim summit, according to sources familiar with the matter.

U.S. President Donald Trump and North Korean leader Kim Jong Un will hold their second summit in the Vietnamese capital of Hanoi on Feb 27-28.

Holding a signing ceremony during Trump’s visit would help emphasise strengthening economic and military ties between the United States and Vietnam.

VietJet, while not government-owned, increasingly uses state visits to showcase major plane orders balanced between Boeing and Airbus SE. It signed a deal to buy 100 Boeing 737 MAX narrowbody jets when former U.S. President Barack Obama visited Hanoi in 2016.

The airline is likely to finalise next week a separate provisional deal agreed last year at the Farnborough Airshow to buy another 100 Boeing 737 MAX jets worth almost $13 billion at list prices, sources said on condition of anonymity due to an expected announcement by VietJet.

The U.S. Federal Aviation Administration declared last week that Vietnam complied with international aviation standards, in a move that would allow Vietnamese carriers to fly there for the first time and codeshare with U.S. airlines.

VietJet said last week it planned to purchase widebody jets capable of U.S. flights to open routes to cities with large Vietnamese communities in the United States, such as in California.

It might be too early for VietJet to place a widebody order, said one of the sources.

Another source briefed on the matter said the deal for 100 737 MAX jets was already on Boeing’s books, having been firmed up earlier and listed as an unidentified customer.

Boeing declined to comment. VietJet did not respond immediately to a request for comment.

VietJet finalised a deal in November with Airbus for 50 A321neo jets during a visit to Hanoi by French Prime Minister Edouard Philippe that had also been announced provisionally at the Farnborough Airshow.

VietJet operates 385 flights daily within Vietnam and to places such as Japan, Hong Kong, South Korea, Taiwan, Singapore, China, Thailand, Myanmar and Malaysia.

However, industry analysts have questioned whether the airline will take delivery of all the aircraft on order as the aerospace industry reaches the peak of an extended growth phase.

(Reporting by James Pearson in Hanoi; Additional reporting by Tim Hepher in Paris; Writing by Jamie Freed; Editing by Muralikumar Anantharaman)

Airbus Pencils in Orders for New A321XLR Jet

February 21, 2019 / WIL BALDWIN

PARIS (Reuters) – Airbus has begun lining up tentative orders for a longer-range version of its A321 jetliner, seeking to exploit signs of hesitation at arch-rival Boeing over whether to develop a new model in a hotly contested niche of the airplane market.

The European firm is in detailed talks with airlines over the price and timing of the longer-range design – known as A321XLR – and has pencilled in some orders subject to a formal launch, expected this year, industry sources said.

Airbus is looking for 200-300 draft orders before committing to build the A321XLR, in a move that would limit the space available for a mid-market alternative that Boeing hopes to launch in a gap between medium-haul and long-haul jets.

“Every A321XLR that Airbus sells, means one less potential sale for the NMA (Boeing’s proposed New Mid-sized Airplane),” an industry source said.

An Airbus spokesman said the planemaker is “always talking to customers” and declined further comment.

The middle of the jet market is at the centre of one of the most widely watched airplane design battles for years.

Boeing is aiming its potential new 220 to 260-seat NMA at a niche previously served by two models: its own 757, a long-range single-aisle jet, and its 767, a larger twin-aisle model.

Boeing dominates the upper end of that spectrum but has come under pressure from Airbus at the lower end.

Last month it postponed a decision on whether to launch the NMA to 2020 from 2019, though it said it could still decide whether to offer the plane on a preliminary basis this year. It maintained its goal of seeing any new jet enter service in 2025.

Facing a potential new competitor, Airbus plans a pincer move, using derivatives of two existing models: the A321neo and its souped-up sister versions – the A321LR and the proposed A321XLR – at the lower end and an upgraded A330 at the top end.

Unlike the smaller A321neo, the upgraded A330neo has been selling poorly but received a boost last week when Emirates ordered 40 of the planes.

The A321XLR would attempt to make it harder for Boeing to launch its new plane by increasing pressure at the lower end of the roughly 200-270-seat mid-market, valued at hundreds of billions of dollars over 20 years.

It would have a higher maximum take-off weight of 101 tonnes and 400-500 nautical miles more range than the A321LR, Airbus’ longest-range single-aisle. It would not carry extra passengers.

The A321LR can carry 206 people for 4,000 miles or up to 240 people on shorter trips. Boeing’s proposed new jet is expected to fly 4,000-5,000 miles, but Boeing says it will do so with the greater comfort of a twin-aisle jet and at a lower cost.

Airbus is expected to try to create momentum for the A321XLR by offering airlines with existing orders for the A321neo or A321LR versions a chance to upgrade to the A321XLR.

U.S. sources have dismissed the A321XLR, saying another model in the A321 family would dilute the second-hand market, making it harder to finance orders of the new longer range version for which the market remains relatively niche.

(Reporting by Tim Hepher; editing by Richard Lough)

Airbus Orders Decline as A380 Shutdown Questions Mount

February 11, 2019 / WIL BALDWIN

Airbus acknowledged reports last Thursday that Quantas has cancelled an order for its 8 remaining A380 aircraft. The announcement comes on the heels of Emirates re-evaluating its decision to add on to its remaining Super Jumbo order book.

Qantas Airlines of Australia confirmed it would not take any more of the world’s largest airplane, operating a fleet of 12 aircraft, instead of the 20 it had originally ordered. This news comes on the heels of Airbus’ largest A380 customer Emirates beginning discussions with Airbus over the possibility of changing some, or all, of its remaining A380 orders to smaller A350 or A330neo models after failing to secure an engine contract from Rolls-Royce for the last A380 order it placed.

Airbus has declined to comment on the future of the A380 at this time, but reports indicate that an announcement could come as soon as this Thursday.

Airbus also reported the cancellation of an order for five of its smallest aircraft, the 110-seat A220-100. The identity of the A220 buyer was not disclosed, but is widely believed to be the Swiss-based business charter carrier PrivatAir, which filed for insolvency at the end of 2018. PrivatAir had placed an ordered for 5 of the type, the Canadian Bombardier CS100 at the time of the order, in early 2012.

American Airlines Takes Delivery of its First A321neo

February 3, 2019 / WIL BALDWIN

PITTSBURGH — After an 8 1/2-hour nonstop journey from Hamburg, Germany (XFW), the newest member of the American Airlines fleet has landed.

N400AN, American’s first Airbus A321neo, touched down at Pittsburgh International Airport (PIT) shortly before noon Feb. 1. After clearing customs, the plane will head to American’s Base Maintenance facility at PIT, where it will spend a couple of weeks undergoing the usual extensive acceptance checks conducted whenever the airline adds a new aircraft type to its fleet. The Tech Ops – PIT team will install ViaSat satellite Wi-Fi, conduct general ops checks and add interior and exterior placards as they customize the aircraft for American. After that, it will visit other American bases before entering service.

The A321neo is scheduled to begin flying customers April 2 between Phoenix Sky Harbor International Airport (PHX) in Arizona and Orlando International Airport (MCO) in Florida. Once the company takes more deliveries, additional routes will include PHX–Ted Stevens Anchorage International Airport (ANC) in Alaska over the summer, and PHX and Los Angeles International Airport (LAX) to Hawaii later this year as the A321neo begins to replace retiring Boeing 757s. The A321 is already a versatile aircraft, and the A321neo (which stands for “new engine option”) adds about 400 nautical miles in range thanks to improved fuel burn from the new engines, putting additional destinations within reach.

American has ordered 100 of these jets with deliveries running over the next several years. They seat 196 customers and, in addition to the fast Wi-Fi, include power at every seat and free wireless entertainment to each customer’s own device including free live television. Additionally, American is the launch customer for Airbus’ new XL overhead bins which significantly increase capacity. The A321neo is American’s first aircraft delivered with these bins and the company will begin retrofitting existing A321s with this same bin later this year.

American is taking the “Cabin Flex,” or “NX,” option of the A321neo, which has a new door configuration. The A321neo is part of the order for 460 aircraft placed by American in 2011, which also included 100 Boeing 737 MAX aircraft. The aircraft from that order have transformed American’s fleet into the youngest among U.S. network airlines.

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

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

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