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Chile’s SKY Orders 10 A321XLRs to Expand International Footprint

SKY, a Chilean-based ultra-low-cost carrier, has signed a Purchase Agreement with Airbus for 10 A321XLRs. The airline will expand its international route network with the new aircraft.

The A321XLR is the next evolutionary step in the A320neo/A321neo Family, meeting market requirements for increased range and payload in a single-aisle aircraft. The A321XLR will deliver an unprecedented narrow-body airliner range of up to 4,700nm, with 30% lower fuel consumption per seat compared with previous-generation competitor jets, allowing airlines to expand networks by making new longer routes economically viable.

“This new aircraft fleet will allow us to expand our offer of international and wide-ranging routes, always under our successful low cost model and its extremely convenient ticket prices. Now passengers can enjoy new and very attractive destinations on the most modern airplanes in the market,” said Holger Paulmann, CEO of SKY.

Arturo Barreira, President of Airbus Latin America, said: “We are delighted that SKY has selected the A321XLR to further expand its fleet of all Airbus aircraft. The A321XLR will allow SKY to offer its customers new destinations, such as direct flights from Santiago in Chile to Miami in the U.S.”

According to the latest Airbus Global Market Forecast (GMF), Latin America will need 2,700 new aircraft in the next 20 years, more than double today’s fleet. Passenger traffic in Latin America has doubled since 2002 and is expected to continue growing over the next two decades. Specifically in Chile, traffic is expected to increase from 0.89 trips per capita to 2.26 trips in 2038.

In parallel to the growing fleet, according to Airbus’ latest GMF, there will be a need for 47,550 new pilots and 64,160 technicians to be trained over the next 20 years in Latin America. To cover this necessity SKY also selected Airbus as its flight training provider, making the airline the launch customer for the new Airbus Chile Training Centre. The centre will offer flight crew training for Chilean pilots and will include a full-flight A320 simulator.

SKY has been an Airbus customer since 2010 and became an all-Airbus operator in 2013. The airline’s fleet of 23 A320 Family aircraft serves national and international routes connecting Chile to Argentina, Brazil, Peru and Uruguay.

Airbus has sold 1,200 aircraft, has a backlog of more than 600 and more than 700 in operation throughout Latin America and the Caribbean, representing a 60% market share of the in-service fleet. Since 1994, Airbus has secured nearly 70% of net orders in the region.

Aircraft Lessor Aircastle to be Bought in $2.4 Billion Deal

Nov 6 (Reuters) – Aircastle Ltd said on Wednesday Japan’s Marubeni Corp and Mizuho Leasing Co Ltd had offered to buy the aircraft lessor in a deal valued at $2.4 billion, ending a nearly two-week long strategic review of its business.

Shares of the company rose 16% to trade in line with the offer price of $32 per share. Marubeni, the company’s largest shareholder, has a 29% stake in Aircastle as of Oct. 23 that is currently valued at about $600 million.

Aircastle, which owned and managed 277 aircraft in 48 countries as of Sept. 30, counts American Airlines, Southwest Airlines and United Airlines among its customers.

Airline bankruptcies have increased this year at the fastest ever rate, led by the collapse of India’s Jet Airways, British travel group Thomas Cook and Avianca of Brazil, adding pressure on aircraft leasing companies.

Fitch Ratings said in September that it expects the sector to worsen in the medium term with a potential rise in airline bankruptcies, further aircraft repossessions and increased financing costs. (http://bit.ly/2qrjaG5)

The deal, which is valued at $7.4 billion including debt, is expected to close in the first half of 2020, Aircastle said.

Citigroup Global Markets Inc will serve as financial adviser to Aircastle.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli and Anil D’Silva)

Close To 85,000 Travelers Took VIA Rail During Easter Weekend

MONTRÉAL, April 25, 2019 – VIA Rail Canada (VIA Rail) continued its long multiple-quarter streak of increased revenue with a solid performance over Easter weekend. Passenger revenue was up 8,8% from 2018’s Easter break, giving the Corporation its best performance in 10 years.

Out of the approximately 85,000 travelers who chose VIA Rail to get around, more than half boarded trains within Ontario on routes that included Ottawa – Toronto, where 10 departures are offered each day in both directions. As for interprovincial travel, 29% of passengers took the train between Ontario and Quebec, particularly on the Montréal – Toronto and Montréal – Ottawa segments. In six days, VIA Rail trains covered a total distance of 28 million kilometres.

Of the busiest segments, the most notable increases over the long weekend were between Montréal and Québec City, Ottawa and Québec City, and Kitchener and Toronto, where passengers opted to take the train instead of their cars for a comfortable and worry-free springtime getaway with their friends or family.

“Our transformation plan continues to pay off as we bring Canadians towards a more sustainable future,” said Yves Desjardins-Siciliano, President and Chief Executive Officer of VIA Rail. “These results are a testament to the growing popularity of train travel and to our commitment to offering passengers a sensible, green alternative to road travel and an easy, sustainable and enjoyable travel experience. This is VIA Rail’s contribution to the future of Canada and of Canadian communities. I commend the sustained efforts and the remarkable devotion of our employees, who are largely the drivers of VIA Rail’s success.”

VIA Rail cross-Canada routes

  • Most popular route: Ottawa – Toronto
  • Most notable ridership increases on the Québec City – Windsor corridor: Montréal – Québec City (up 15%), Ottawa – Québec City (up 11.6%) and Kitchener – Toronto (up 9.8%)
  • 24.7% revenue and 8.9% ridership increases on non-Corridor routes (Toronto – Vancouver and Montréal – Halifax long-distance trains, and regional routes)
  • Busiest day: Thursday, April 18

About VIA Rail Canada
As Canada’s national rail passenger service, VIA Rail (viarail.ca) and all its employees are mandated to provide safe, efficient and economical passenger transportation service, in both official languages of our country. VIA Rail operates intercity, regional and transcontinental trains linking over 400 communities across Canada and about 180 more communities through intermodal partnerships, and safely transports nearly 4.8 million passengers annually. The Corporation has been awarded five Safety Awards and three Environment Awards by the Railway Association of Canada since 2007. Visit the “About VIA Rail” section at https://www.viarail.ca/en/about-via-rail.

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