The last we heard of the Icelandic budget airline Wow Air was in March 2019 when it ceased operations without warning, stranding up to 4,000 passengers at the time. According to Yahoo, the airline is now on schedule to come back in October of this year, thanks to a major investment by USAerospace Associates.
Michele Ballarin, chief executive of USAerospace Associates, said in a press conference last week that Wow Air will relaunch with just two planes in operation, with the potential to increase that number to more than 10 aircraft by summer 2020. The relaunched Wow Air operations will be based at Dulles International Airport, located outside of Washington, DC, though it will have facilities in Reykjavik and nearby Keflavik International Airport.
IT IS NOT TRUE THAT INTERJET IS IN TECHNICAL BANKRUPTCY
The handling of the information published by Bloomberg is irresponsible.
The news agency made a misinterpretation of the judicial review filed by Interjet in its legal dispute with the Internal Revenue Service of Mexico.
Mexico City, August 30, 2019.- Interjet categorically denies that it is bankrupt as published by the Bloomberg news site. The news agency made a misinterpretation of the constitutional claim filed by the airline in the dispute that it holds with the Internal Revenue Service of Mexico (SAT).
Bloomberg had access to a file that by law is not supposed to be public. In a judicial dispute, the only persons entitled to consult the records are those authorized by the parties involved in the trial.
At no time, the company has recognized the existence of a technical bankruptcy as this media outlet states.
It should be noted that bankruptcy can only be declared by court order, and cannot be self-imposed by the debtor or any other entity. It’s a legal process through which the insolvency of a company has to be proved. This is not the case of the current situation of Interjet because the company continues paying its debts.
Bankruptcy cannot be declared by a company or by an individual, and this determination corresponds to a court.
Interjet reserves its right to pursue any available legal actions against Bloomberg.
NEW YORK (Reuters) – U.S. casino operator Eldorado Resorts Inc has agreed to merge with Caesars Entertainment Corp in a cash and stock deal that values its peer at about $18 billion including debt, people familiar with the matter said on Sunday.
The agreement comes three months after Reuters reported that Caesars had agreed to give Eldorado access to its books under pressure from billionaire investor Carl Icahn, who earlier this year was awarded seats on Caesars’ board.
The deal, which is expected to be announced on Monday, values Caesars at close to $13 a share, according to the sources. The combined company’s ownership would be split roughly between Eldorado and Caesars shareholders, the sources said.
The sources asked not to be identified because the matter is confidential. An Eldorado spokesman said the company did not comment on rumors or speculation. Caesars did not immediately respond to requests for comment.
The combination of the two companies would create a serious competitor to larger casino industry players, such as Las Vegas Sands Corp, Wynn Resorts Ltd and MGM Resorts International.
Caesars’ shares closed on Friday at $9.99. The company, which emerged from bankruptcy in 2017, operates casinos with the Harrah’s and Horseshoe brands. It had 53 properties in 14 U.S. states and five countries outside the United States at the end of December.
Eldorado has a market value of $4 billion. It also had long-term debt at the end of March of $3.1 billion. It owns and operates 26 properties in 12 U.S. states.
(Reporting by Greg Roumeliotis; Editing by Peter Cooney)
SAO PAULO, May 9 (Reuters) – Brazilian airline Azul SA’s chief executive said on Thursday that its two larger competitors had barred the carrier from providing a competing air shuttle service on the highly profitable Sao Paulo to Rio de Janeiro route.
“Essentially what they did was they had a shutdown plan to keep us out,” CEO John Rodgerson told Reuters in an interview, referring to competitors Gol Linhas Aereas Inteligentes and LATAM Airlines Group.
The comments come weeks after Azul engineered a plan to break into the Sao Paulo-Rio de Janeiro route, by far the most transited in South America, but it fell apart after Gol and LATAM intervened.
The three airlines have been disputing the airport rights set to be left behind by their struggling competitor Avianca Brasil, which was scheduled to auction the routes this week as part of a bankruptcy process.
Azul, Brazil’s No. 3 airline, initially reached a deal with Avianca Brasil, but a few weeks later Gol and LATAM reached a different deal with Avianca Brasil’s key creditors, which was ultimately approved and sidelined Azul.
Both plans hinged on a successful Avianca Brasil bankruptcy auction, but the event was recently suspended indefinitely, meaning that even Gol and LATAM may not be able to get the airport rights they had agreed to buy.
“I don’t think they ever had the intention of closing on the deal,” Rodgerson said of Gol and LATAM’s agreement with Avianca Brasil.
Gol and LATAM have previously denied any anti-competitive stance.
Brazil’s antitrust regulator CADE said in April that it was concerned about a potential takeover by Brazil’s two major airlines, and that it preferred to see Azul or a new airline take over Avianca Brasil’s airport rights.
The rift also led Azul to leave Brazil’s airline industry group, known as ABEAR, late last month.
“I think the way they acted was inappropriate and not in the best interest of the industry,” Rodgerson said. “I don’t think we share the same values.”
Rodgerson gave the interview as part of Azul’s first quarter results announcement, in which higher operational costs weighed significantly, sending profits down 20% to 137.7 million reais ($35.06 million), despite significantly higher revenue compared to the same period last year.
While revenue grew 16% to 2.5 billion reais, personnel costs surged 37% amid continued expansion at the company, as well as the expiration of a payroll tax incentive.
“It’s kind of the new norm,” Rodgerson said.
Fuel costs also increased significantly, while other undisclosed costs jumped 34% to 224 million reais in the period.
Azul and its Brazilian competitors have faced higher costs in recent quarters due to the continued depreciation of the local currency, the real. While passengers buy their tickets in reais, many of the airline’s expenses, such as fuel, are denominated in the stronger U.S. dollar.
($1 = 3.9393 reais)
(Reporting by Marcelo Rochabrun; editing by Bernadette Baum and Bill Trott)
SAO PAULO, May 9 (Reuters) – Higher operational costs weighed on Brazil’s No. 3 airline, Azul SA, sending profits in the first quarter down 20% to 137.7 million reais ($35.06 million), despite significantly higher revenue compared to the same period last year.
While revenue grew 16% to 2.5 billion reais, personnel costs surged 37% amid continued expansion at the company.
Fuel costs also increased significantly, while other undisclosed costs jumped 34% to 224 million reais in the period.
Azul and its Brazilian competitors have faced higher costs in recent quarters due to the continued depreciation of the local currency, the real. While passengers buy their tickets in reais, many of the airline’s expenses, such as fuel, are denominated in the stronger U.S. dollar.
Earlier this year, Azul signed a tentative deal that ultimately fell through to take over a set of coveted domestic routes that were to be auctioned off by its rival Avianca Brasil, which is going through a bankruptcy protection process.
The routes were then set to go to its two larger competitors, Gol Linhas Aereas Inteligentes and LATAM Airlines Group, dealing a blow to Azul as it had hoped to break into the lucrative Sao Paulo-Rio de Janeiro route.
That route is currently dominated by Gol and LATAM and is considered to be among the most profitable in the country.
At the last minute, a judge indefinitely suspended Avianca’s auction which was due earlier this week.
($1 = 3.9273 reais) (Reporting by Marcelo Rochabrun; Editing by Bernadette Baum)
MONTREAL (Reuters) – Canada’s Bombardier Inc said on Thursday it would unite its corporate and regional jet-making units into a single aviation division, as it continues focusing on its strongest businesses while shedding aerostructure facilities in Belfast and Morocco.
The announcement comes ahead of an annual general meeting later in the day, where the plane and train maker is expected to face questions from investors on whether its turnaround plan is still on track as its transportation unit grapples with delayed rail contracts.
Investors were rattled last week when Bombardier cut its first-quarter and full-year revenue targets for the transportation division, its largest unit, raising concerns over whether it will still meet its 2020 targets of boosting margins and generating $20 billion (£15 billion) in revenue.
Bombardier on Thursday posted first-quarter revenue and profit, in line with revised expectations issued a week ago, when it sharply cut estimates for full-year profit and revenue.
It had slashed its full-year transportation revenue forecast by almost 8 percent to about $8.75 billion.
The company said in a statement it was making progress toward completing five long-term rail projects that have been marred in some cases by delivery delays and production problems, but these would take a few more quarters for completion.
Bombardier’s planned sale of its Belfast wing and structure-making operation, the largest high-tech manufacturer in Northern Ireland which employs 3,600, stunned workers who called on the British government to retain jobs.
A separate facility which produces aeronautical-equipment in Morocco will also be sold.
Under Chief Executive Alain Bellemare, Bombardier has been selling off businesses, including the money-losing Q400 turboprop program, to focus on more profitable units like rail and corporate jets.
The rail division, which is expected to generate $10 billion next year, is crucial to Bombardier’s five-year turnaround plan, after heavy investment in aircraft production drove it to the brink of bankruptcy in 2015.
Besides creating a single aviation division headed by business aircraft president, David Coleal, the company said it will consolidate its five aerostructures businesses to focus on facilities in Montreal, Mexico and its newly acquired Global 7500 business jet wing operations in Texas.
Bombardier’s commercial aircraft president Fred Cromer will continue to lead efforts as the company weighs the future of its money-losing regional jet program.
Some investors have questioned Bombardier’s credibility in revising its financial guidance after a recent debt raise.
“The concern, particularly after the March debt raise, is whether management remains committed to its longer term 2020 guidance,” said Toronto-based AltaCorp analyst Capital Chris Murray by email.
“We expect that during that process, the company had reiterated prior 2019 guidance, which it changed last week, adding to concern on the part of bondholders.”
A Bombardier spokesman declined to comment and said management would address questions at the meeting.
Bombardier said it continues to expect full-year free cash flow to be breakeven, plus or minus $250 million, as Global 7500 aircraft and key transportation project deliveries are expected to accelerate in the second half of the year.
Adjusted core earnings rose by $1 million to $266 million in the three months to March 31, while revenue fell 13 percent to $3.52 billion.
(Reporting By Allison Lampert in Montreal. Additional reporting by Arathy Nair in Bengaluru and Fergal Smith in Toronto; Editing by Arun Koyyur and Bernadette Baum)
FILE PHOTO: Logo of Bombardier is seen at an office building in Zurich, Switzerland February 28, 2019. REUTERS/Arnd Wiegmann
RIO DE JANEIRO (AP) — Avianca Brasil canceled more than 1,045 domestic flights this week because it has to return 18 aircraft to leasing agencies.
Brazil’s National Aviation Agency said the planes needed to be returned Monday to avoid affecting Holy Week holiday passengers. Customers can either get refunds for canceled flights or rebook through partner airlines.
Avianca Brasil declined to say how many planes it has left. But the G1 news portal reports that the airline has just seven planes still in its fleet.
On April 1, the airline canceled several international routes from Sao Paulo to New York, Miami and Santiago, Chile.
Avianca Brasil filed for bankruptcy in December after failing to pay leases on its aircraft. The airline, formerly known as Ocean Air, has licensed the name Avianca since 2010 from Colombian carrier Avianca Holdings SA. They are separate companies with the same owners: brothers German and Jose Efromovich. The latter is being investigated for allegedly failing to pay airport fees in Salvador airport in northeastern Brazil.
A company representative from Avianca’s headquarters in Colombia stressed that the Brazilian company is independent from Avianca Holdings group, both operationally and financially. The company said in a statement that flights operated by Avianca Holdings SA from hubs in Bogota and Lima, Peru, to destinations in Brazil will not be affected by the Avianca Brasil cancellations.
Airbus A320 Neo of Avianca at GRU Airport – Guarulhos International Airport, Sao Paulo, Brazil – 2017
NEW DELHI/BENGALURU (Reuters) – India’s SpiceJet Ltd could benefit from cash-strapped Jet Airways being forced to ground planes, and the low-cost carrier is in talks with lessors to lease some of those aircraft, a person with direct knowledge of the matter told Reuters.
Shares of SpiceJet rose as much as 7.2 percent on Wednesday in their biggest percentage gain since Dec. 18 as investors bet the airline could take advantage of Jet Airways’ woes.
SpiceJet last week was forced to ground its 12 Boeing Co 737 MAX 8 planes by India’s aviation watchdog, following safety concerns after the Ethiopian Airlines plane crash that killed 157 people.
SpiceJet and Jet Airways are the only carriers in India that operate this type of aircraft and have a total of about 400 on order. The airlines also operate the previous model, the 737-800 among other Boeing planes.
The 737-800 makes up the majority of the Jet Airways fleet, and the airline is now operating only 41 aircraft, the Directorate General of Civil Aviation (DGCA) said on Tuesday.
That means around two-thirds of its fleet is grounded for non-payment to lessors, maintenance or other reasons.
“Lessors are panicking as they haven’t been paid and if Jet goes for insolvency, their planes will be stuck in India, so many of them are chasing SpiceJet,” said the person quoted earlier.
The person said SpiceJet needs at least twelve 737s to cover the grounded MAX planes and it is negotiating for more. Jet Airways pilots are also queuing up to join the budget airline.
Jet Airways’ lessors have offered 50 aircraft to SpiceJet, according to a report by news wire IANS.
SpiceJet and Jet Airways did not immediately respond to a request for comment.
Jet Airways shares dropped about 7 percent on Wednesday as its financial crisis deepened, with the Indian government calling for an emergency meeting and pilots threatening to go on strike over unpaid salaries.
The government has asked state-run banks to rescue Jet Airways without pushing it into bankruptcy, two people within the administration have told Reuters, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election.
The 25-year-old airline has defaulted on loans after racking up over $1 billion in debt, and owes money to banks, suppliers, pilots and lessors – some of whom have started terminating their lease deals with the carrier.
This has forced Jet Airways to cancel hundreds of flights, leaving passengers stranded and angry. The number of Jet Airways flights has fallen by 80 percent from a year ago, according to the DGCA.
(By Aditi Shah and Tanvi Mehta, Additional reporting by Arnab Paul in Bengaluru, Editing by Sherry Jacob-Phillips and Shreejay Sinha)
FILE PHOTO: A Jet Airways passenger aircraft takes off from the airport in Ahmedabad, August 12, 2013. REUTERS/Amit Dave/File Photo
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
OSLO
(Reuters) – Norwegian Air’s shareholders overwhelmingly endorsed on
Tuesday the lossmaking airline’s plan for a deeply discounted cash call
to help bolster its finances, Chairman Bjoern Kise said.
Norwegian
Air said on Jan. 29 it would raise 3 billion Norwegian crowns ($348
million) in a rights issue, just days after British Airways owner IAG
ruled out a bid for the budget carrier.
Norwegian
is trying to replicate on transatlantic flights the low-cost model that
dominates the short-haul market, exemplified by the likes of Ryanair
and easyJet, but is struggling to make the business profitable.
The
European airline sector faces overcapacity and high fuel costs, with
several operators going out of business, the latest being British-based
Flybmi which filed for bankruptcy on Sunday.
In
the rights issue, Norwegian’s owners will get the right to buy two new
shares at 33 crowns each for every share they own, compared with
Monday’s closing price of 93 crowns.
Holders of more than 99 percent of Norwegian’s equity backed the proposal at a meeting on Tuesday, company officials said.
By
selling new shares far below the market price, Norwegian will boost the
value of each of the purchasing rights, which can be bought and sold.
This
in turn allows Norwegian Air Chief Executive Bjoern Kjos and his
business partner, the group’s chairman, to sell some of their
subscription rights and reinvest the proceeds in new shares, thus
limiting the dilution of their joint stake which stands at 24.66
percent.
Norwegian said last month that billionaire investor John Fredriksen was among those who had agreed to take part in the issue.
($1 = 8.6295 Norwegian crowns)
(By Terje Solsvik, Editing by Nerijus Adomaitis and David Holmes)
