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.
De Havilland Aircraft of Canada Ltd said it had obtained 34 more orders and purchase agreements for its Dash 8-400 plane at last months Dubai Airshow, as it revives the recently acquired turboprop business from Bombardier Inc.
Aurora, a subsidiary of Aeroflot-Rossiyskiye Avialinii PAO , signed a letter of intent to purchase up to five Dash 8-400 aircraft, while the Republic of Ghana agreed to buy six aircraft during the Dubai Airshow, which ran between Nov. 17-21.
ACIA Aero Capital Ltd also signed a conditional purchase agreement to buy three Dash 8-400 aircraft, the company said in a separate statement.
Longview Aviation Capital closed its deal for the Q400 turboprop aircraft program from Canada’s Bombardier this year and revived its previous model name – Dash 8 – under a restored corporate brand of De Havilland Aircraft of Canada.
On Monday, De Havilland landed an order for 20 Dash 8-400 turboprops from lessor Palma Holding at the ongoing Dubai Airshow.
(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Rashmi Aich)
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.
AMSTERDAM, Netherlands, Nov. 12, 2019 /PRNewswire/ — Embraer and KLM Cityhopper have signed a firm order for 21 E195-E2 aircraft, plus 14 purchase rights. The 21 firm positions will be acquired via operating lease from Embraer lessor partners Aircastle and ICBC Aviation Leasing. The order was previously announced as a Letter of Intent for 15 firm orders with 20 purchase rights at the Paris Air Show earlier this year. With all purchase rights exercised the deal would have a value of USD 2.48 billion.
The aircraft for this order will come from the existing backlogs of lessors Aircastle and ICBC Aviation Leasing; each providing KLM with 11 and 10 E195-E2s, respectively.
“KLM’s decision to add a further six aircraft to this order is a significant vote of confidence in our E2 programme”, said John Slattery, President and CEO, Embraer Commercial Aviation. “Delivering 30% lower emissions when compared to KLM’s current E190s, yet still providing a further 32 seats, the E195-E2 will simultaneously increase capacity for KLM at slot constrained Schiphol Airport, while also delivering huge reductions in emissions.”
KLM President & CEO Pieter Elbers, said, “For KLM this aircraft is a significant part of our commitment to improving our environmental impact. Not only is the E195-E2 the most fuel efficient lowest emission aircraft in its class, it is also the quietest by a considerable margin – a huge benefit for both our communities and our passengers.
KLM will configure the aircraft with 132 seats. Deliveries will begin in the first quarter of 2021.
Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers across the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleets of 80 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline network carriers.
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)
PARIS/ZURICH (Reuters) – U.S. engine maker Pratt & Whitney faces new checks on engines for small jetliners after an engine failure forced a Geneva-bound Swiss jet to divert to Paris and prompted a brief grounding of the rest of the airline’s Airbus A220 fleet.
French air crash investigators classified the problem that disrupted the Swiss flight shortly after departure from London Heathrow on Tuesday as a “serious incident” and said it would be investigated by the U.S. National Transportation Safety Board.
It was the third engine incident involving the same airline and model of jet in as many months and resulted in a small amount of debris being scattered as the aircraft landed at Paris Charles de Gaulle, an airport source told Reuters.
It came just hours after France’s BEA agency launched an unusual appeal for 150 volunteers to scour an uninhabited wood in eastern France for a titanium engine part dating from the first blowout in July, which affected a Geneva-London flight.
A second incident in September caused a Swiss A220 to divert to Geneva, but on that occasion the engine’s housing contained fragments torn loose from the engine, the BEA said.
Swiss, owned by Germany’s Lufthansa <DLAKY>, said after Tuesday’s incident it had initially grounded its fleet of Airbus <EADSY> A220 jets for a “comprehensive inspection” of their engines.
Late on Tuesday, it said the first aircraft had already returned to service but that the inspections had forced it to cancel 100 flights, affecting 10,000 passengers.
Operations are expected to return to normal from Thursday.
ADDITIONAL CHECKS
Tuesday’s incident highlighted scrutiny of the performance of new-generation Geared Turbofan engines developed by Pratt & Whitney, a unit of United Technologies Corp <UTX>.
A spokesman for the engine maker said it was recommending additional checks for versions of the engine that power the Airbus A220 – an engine known as the PW1500G – and a rival Brazilian jet, the Embraer 190/195-E2.
A similar engine for the larger A320neo family, Airbus’ most-sold aircraft, was not affected.
“Pratt & Whitney and our airframe OEMs (manufacturers), working in coordination with the regulatory authorities, have recommended additional inspections of the low-pressure compressor for PW1500G and PW1900G engines to keep the fleet operational,” a spokesman said.
“The engines continue to meet all criteria for continued airworthiness. We are working closely with our customers to minimise disruption to their operations.”
Prompted by the earlier incidents in July and September, the U.S. Federal Aviation Administration ordered inspections on the same engine part in A220s and some Embraer jets in September.
On Tuesday, Delta Air Lines <DAL> said its A220 jets were flying as normal.
Air Baltic, which also flies the A220, said it was closely following Pratt’s latest recommendations but that it used a different version of the PW1500G engine from Swiss.
A total of 90 of the 110-130-seat A220 aircraft have been delivered, initially by Canada’s Bombardier <BDRBF> which designed the carbon-fibre jet, and later by Airbus, which bought the loss-making programme last year.
Airbus said it was working with Pratt & Whitneyand would co-operate with any investigation.
In Brazil, Embraer <ERJ> had no immediate comment.
The company uses Pratt’s PW1900G engine in larger versions of its upgraded 80-120-seat E2 jets.
It has delivered six E190-E2 planes split between Norwegian carrier Wideroe and lessor Aercap <AER>, and one E195-E2, which is not yet in commercial service but has been delivered to Brazilian airline Azul SA <AZUL>.
Azul said its operations were not affected.
(Reporting by Tim Hepher in Paris, Tracy Rucinski in Chicago, John Revill in Zurich, Michael Shields in Vienna, Marcelo Rochabrun in Sao Paulo, Allison Lampert in Montreal, Laurence Frost in Paris; Editing by Jane Merriman and Matthew Lewis)
Delta TechOps, the maintenance, repair and overhaul (MRO) division of Delta Air Lines, has signed a five-year Maintenance Services Agreement with top-tier aircraft leasing company ORIX Aviation Systems, Ltd. (ORIX Aviation). The agreement will cover the support of CFM56-5B and CFM56-7B aircraft engines.
As both an operator of, and MRO for CFM56-5B and -7B engines, Delta TechOps is uniquely qualified to provide maintenance services to ORIX. Delta TechOps has been maintaining CFM56 engines for numerous years and will be able to pass along the same operational reliability and expertise to this globally-established lessor.
“We are proud that ORIX Aviation has selected Delta TechOps for their CFM56 engine maintenance needs,” said Mike Moore, Delta’s Senior Vice President – Maintenance Operations. “The agreement is a testament to our relationship and commitment to excellent customer service. We look forward to building on this partnership with this major aircraft lessor in the coming years.”
“We are pleased to have the expertise of Delta TechOps on board in support of CFM56-5B and CFM56-7B technical requirements which the ORIX Aviation team may have going forward,” said James Meyler, CEO – ORIX Aviation Group.
AirAsia has taken delivery of its first A330neo aircraft, to be operated by its long-haul affiliate AirAsia X Thailand. The aircraft was delivered via lessor Avolon and is the first of two A330neos set to join the airline’s fleet by the end of the year.
With its enhanced economics, the A330neo will bring a step-change in fuel efficiency for AirAsia’s long-haul operations. The new-generation A330neo will be based at Bangkok’s Don Mueang International Airport in Thailand, supporting the airline’s growth and network expansion plans to key markets such as Australia, Japan and South Korea.
The AirAsia X Thailand A330-900 features 377 seats in a two-class configuration, comprising 12 Premium Flatbeds and 365 economy class seats.
AirAsia’s long-haul affiliate, AirAsia X currently operates 36 A330-300 aircraft and is the largest customer for the A330neo with 66 on firm order.
The A330neo is the true new-generation aircraft building on the most popular wide-body A330’s features and leveraging on A350 XWB technology. Powered by the latest Rolls-Royce Trent 7000 engines, the A330neo provides an unprecedented level of efficiency – with 25% lower fuel burn per seat than previous generation competitors. Equipped with the Airbus Airspace cabin, the A330neo offers a unique passenger experience with more personal space and the latest generation in-flight entertainment system and connectivity.
SINGAPORE (Reuters) – Aircraft lessor BOC Aviation Ltd said on Tuesday it expected up to 30 Boeing Co <BA> and Airbus SE <EADSY> jets that had been scheduled to arrive this year could be delayed, primarily due to the Boeing 737 MAX grounding.
BOC said 18 jets that had been due in the first half had been delayed, including 12 A320neo’s due primarily to industrial constraints and 6 737 MAX’s as a result of the grounding.
For the full year, up to 7 A320neo’s and 23 737 MAX’s could be delayed, including three for which an airline customer has the right to acquire upon delivery, Asia’s second-biggest aircraft lessor said in a statement.
BOC said it was working with Boeing on a revised delivery timeframe.
Boeing last week estimated a return to service for the jet would begin early in the fourth quarter, but it did not rule out further reducing or temporarily shutting down production of the plane if that forecast needed to be revised.
U.S. carrier Southwest Airlines Co <LUV> last week removed the 737 MAX from its schedules until Jan. 5, 2020, saying it would need one to two months following regulatory approval to train pilots and prepare the jets for fresh commercial service.
(Reporting by Jamie Freed; Editing by Stephen Coates)
Major fleet upgrade with nine modern turboprops providing increased seat capacity, lowest operating costs and best environmental performance
Toulouse, 26 June, 2019 – TAROM, the Romanian national air carrier, will introduce nine new ATR 72-600 aircraft, the market-leading product of the world’s number one regional aircraft manufacturer, into its fleet. The ATR 72-600 will be leased from NAC, the world’s number one regional aircraft lessor. Deliveries will commence in October 2019 through to 2020.
TAROM has been very successful in its domestic market operations by using ATRs to allow it to compete with low cost carriers. This upgrade will ensure that the airline is equipped with the latest generation of turboprops burning 40% less fuel and emitting 40% less CO2 than regional jets.
New ATRs will offer TAROM an additional 330,000 seats every year at the same operating cost as its previous seat level, improving short haul connectivity in Romania and supporting the development of local and more isolated communities. This will provide TAROM with the possibility to further expand and consolidate their position in the market.
TAROM Chief Executive Officer Madalina Mezei said: “We have selected ATR after a comprehensive review of competing aircraft, with the ATR 72-600’s demonstrating they are the best aircraft to meet our ambitious targets regarding efficiency, modern technology and environmental responsibility. With this aircraft, we will be able to develop new routes and increase frequency and seat availability, whilst introducing the highest levels of comfort and the latest technology into our domestic network.”
“We are very proud to welcome TAROM as our newest customer,” said Martin Møller, Chairman of Nordic Aviation Capital “we are confident that the ATR 72-600 aircraft will ensure efficiency in their network for many years to come. We thank TAROM for the confidence they have placed in NAC, and we look forward to building and strengthening our relationship with them in the future.”
Stefano Bortoli, Chief Executive Officer of ATR commented: “TAROM is among Europe’s most experienced ATR operators. We are proud to see this long-time customer renew its partnership with the ATR 72-600, the regional aircraft with the best environmental credentials. TAROM made its selection after a vigorous evaluation and in selecting the ATR 72-600 they chose more efficiency, more flexibility and more capacity, for long-term benefits.”
TAROM and ATR have been working together for 20 years. The Romanian national airline operates a fleet of 25 aircraft, including seven ATR 42-500’s and two ATR 72-500’s which are now to be traded in for the announced nine 72-600’s.
About TAROM: The Romanian National Air Transport Company TAROM has been established in 1954 and grew at the same time as Romanian aviation. TAROM’s activity is subordinated to the authority of the Ministry of Transports. TAROM is member of the Alliance SkyTeam starting from June 2010, member of the International Air Transport Association (IATA) starting from 1993.
