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)
Oct 15 (Reuters) – United Airlines on Tuesday topped Wall Street estimates for quarterly profit, boosted by higher fares and lower fuel costs, and lifted its 2019 profit target despite the continued grounding of the Boeing 737 MAX.
Chicago-based United is one of three U.S. airlines that have each had to cancel more than 2,000 monthly flights through the end of the year as Boeing Co’s 737 MAX remains grounded following two deadly crashes in Indonesia and Ethiopia.
The flight cancellations have weighed on airline profits and costs, but strong travel demand, despite concerns of a global economic slowdown, continued to offset MAX headwinds and disruption in Hong Kong and China.
As a result, United raised its 2019 adjusted diluted earnings per share guidance to $11.25-$12.25 versus $10.50-$12.00 previously.
United shares, which closed up 1% at $87.88 before the earnings release, were about 1% higher in after-hours trading.
Total operating revenue rose 3.4% to $11.38 billion, underpinned by the airline’s three-year strategy to build up flight connections through its main U.S. hubs.
But closely watched unit costs excluding fuel and profit-sharing expenses, a concern for investors, rose 2.1%.
The airline, which is in talks with Boeing over 737 MAX compensation, did not provide any details on the estimated financial impact of the grounding.
Adjusted net income rose to $1.05 billion, or $4.07 per share, in the third quarter, from $834 million or $3.05 per share a year earlier.
Analysts on average had forecast $3.95 per share, according to IBES data from Refinitiv.
United management will host a conference call to discuss results on Wednesday at 10:30 a.m. EDT (1430 GMT).
Fellow U.S. MAX operators Southwest Airlines and American Airlines, which have both warned of a pretax profit hit from the MAX grounding, are due to report quarterly results next week.
United, Southwest and American are all scheduling without the MAX until early January.
(Reporting by Tracy Rucinski in Chicago and Sanjana Shivdas in Bengaluru Editing by Shinjini Ganguli and Matthew Lewis)
All six people on board an Airbus H125 (AS350B3e) civilian helicopter that crashed in northern Norway on Saturday afternoon have died, the police reported on Sunday. According to reports, the helicopter was operated by the Norwegian company Helitrans. There were five passengers from Norway, all in their early twenties, plus a Swedish pilot. One survivor found at the crash site southwest of Alta later passed away at the hospital.
The crash occurred in Skoddevarre, near Alta, Finnmark. The helicopter was operating local sightseeing flights during the “Høstsprell” local music festival.
USA Today has reported that Southwest will cut nearly 20 nonstop routes across its network to free up airplanes for higher demand flights, including its new Hawaiian service. The routes being cut include Austin to San Francisco, which will be discontinued on January 6th. After the discontinuation, you’ll still be able to fly nonstop to San Francisco on Alaska, Frontier, and United Airlines.
Southwest also confirmed in July that it would discontinued nonstop service to Newark Liberty International Airport in November due to the grounding of its Boeing 737 Max aircraft this year. United will continue to fly nonstop to Newark with American, Delta and JetBlue serving New York’s John F. Kennedy International Airport.
Despite the cuts in Austin service, Southwest Airlines will still be the top air carrier at Austin Bergstrom International Airport by passenger traffic.
CHICAGO/WASHINGTON, Aug 22 (Reuters) – The U.S. Federal Aviation Administration said on Thursday it would invite Boeing 737 MAX pilots from across the world to participate in simulator tests as part of the process to recertify the aircraft for flight following two fatal crashes.
Earlier, Reuters reported that the agency had asked the three U.S. airlines that operate the MAX to provide the names of some pilots who had only flown the 737 for around a year, including at least one MAX flight.
In a statement, the FAA said it had not specified the number of required hours of flight experience, but said the candidates would be a cross-section of line pilots and must have experience at the controls of the MAX.
Boeing Co’s latest 737 narrow-body model, the MAX, was grounded worldwide in March after two crashes within five months in Indonesia and Ethiopia that killed 346 people.
Boeing has been reprogramming software for a stall-prevention system at the center of both crashes, which the FAA must approve before the plane flies again commercially.
The FAA said it had not yet specified a firm schedule for the tests.
Boeing has said it is working toward getting the 737 MAX flying again commercially in the early fourth quarter. Reuters reported on Thursday that it had told suppliers it planned to ramp 737 production back up in February, sending its shares 4% higher.
The world’s largest planemaker slowed its 737 production rate in April because deliveries of the MAX, which makes up the bulk of its single-aisle production, were frozen under the grounding, hitting its supply chain and airline customers.
In the United States, MAX operators Southwest Airlines Co , American Airlines and United Airlines have had to cancel hundreds of daily flights as they wrestle with slimmer fleets at a time of strong domestic air travel demand.
The MAX is Boeing’s fastest-selling aircraft, with about 5,000 pending orders.
As part of its own testing process, Boeing has invited senior airline pilots to experiment with the software fix and use simulators to run scenarios similar to the ones that led to the two crashes.
But sources told Reuters that the FAA also wanted to observe newer 737 pilots. One source said the simulator tests were supposed to be conducted during the first week of September but had been pushed back to the middle of the month.
The FAA, which is working alongside global regulators, has said repeatedly it does not have a fixed time line to approve the grounded jets to fly commercially again.
(Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington; Additional reporting by Eric M. Johnson in Seattle; Editing by Matthew Lewis and Peter Cooney)
Southwest Airlines Co. (NYSE: LUV) today announced the carrier will add new service to, from, and within Hawaii in mid-January 2020 with new, daily service between Sacramento International Airport (SMF) and Honolulu. In addition, new service nonstop between both of the carrier’s Hawaii gateways in the Bay Area, Oakland and San Jose, and both Kauai and the Island of Hawaii, will give Southwest Customers access to 18 flights transiting the Pacific each day between three California cities and four of the five airports Southwest will serve in the Aloha State.
Today’s schedule publication extends an ability for the carrier’s Customers to book Southwest travel through March 6, 2020, and also puts on sale the first-ever Southwest service to Lihue Airport (LIH) on Kauai and Hilo International Airport (ITO) on the Island of Hawaii.
With these additions, Southwest will operate a total 34 departures a day on interisland routes, including newly available service between Honolulu and Lihue & Honolulu and Hilo, four times daily in each direction. It will offer service nonstop between Kahului and Kona once daily in each direction.
Hawaii service details for previously announced gateway San Diego will be announced later.
In celebration of the expansion, Customers now may book the carrier’s second wave of Hawaii service at Southwest.com/Hawaii with launch fares on sale today only for as low as:
Fly Southwest between:
Nonstop service begins:
Book today only, one-way travel as low as:
When traveling on Tuesdays or Wednesdays:
Sacramento & Honolulu
January 19
$99
Jan. 21 – March 4, 2020
Oakland & Kona
January 19
$99
Jan. 22 – March 4, 2020
San Jose & Lihue
January 19
$99
Jan. 22 – March 4, 2020
Oakland & Lihue
January 21
$99
Jan. 21 – March 3, 2020
San Jose & Kona
January 21
$99
Jan. 21 – March 3, 2020
The carrier is offering introductory pricing on new interisland flights:
Fly Southwest interislandbetween:
Nonstop service begins:
Book through Aug. 22, one- way travel as low as:
When traveling on Tuesdays or Wednesdays:
Honolulu & Lihue
January 19
$29
Jan. 21 – March 4, 2020
Honolulu & Hilo
January 19
$29
Jan. 21 – March 4, 2020
Kahului & Kona
January 19
$29
Jan. 21 – March 4, 2020
Fares are available through 11:59 p.m. Pacific Daylight Time on the purchase-by dates specified above.Travel on these fares is valid only on certain days of week and seats are limited. Please see complete fare sale rules below.
“We’re energized by the warm aloha Southwest has enjoyed in response to our initial Hawaii offering and this second wave of service is an investment that broadens our everyday value through low fares, no fees to change tickets (though fare difference may apply), and two checked bags free* for everyone,” said Tom Nealon, Southwest Airlines President. “We’re focused on bringing Hawaii an authentically Southwest experience with comfort across all seating—for every Customer—along with in-cabin snack enhancements for our flights between Hawaii and the mainland.”
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)
Southwest Airlines Co. (NYSE: LUV), in partnership with Discovery Channel, launched a campaign bringing the fun of Shark Week to flying fans this summer. The carrier is celebrating Shark Week throughout July, ahead of Shark Week on Discovery beginning Sunday, July 28.
“Our Shark Week partnership brings fun through unique offerings for our Customers and Employees,” said Brandy King, Director of External Communication who oversees the airline’s Brand Partnerships and Entertainment Public Relations initiatives. “Whether on the ground with augmented reality experiences and gate games hosted by our Employees, to inflight exclusive content on our Shark Week On-Demand Channel, or through our social channels with engaging content and a special sweepstakes, we’ll be celebrating Sharks all month.”
Southwest brings Shark Week to fans through all phases of travel and, this year, extends the immersion straight into their homes. Through an augmented reality experience, Shark Week fans engaging with Southwest through the carrier’s social channels and in airports across the country will be encouraged to “swim with sharks” by using the augmented reality experience, accessible via swa.is/sharkweek. Fans can download a filter on their cell phones to select from the five most-popular sharks featured in Shark Week programming (Great White Shark, Hammerhead Shark, Mako Shark, Tiger Shark, and Bull Shark) to swim across their screens, and share a photo or video of the experience to their social channels using #SharksTakeFlight.
Customers traveling this summer will be able to experience the fun of Shark Week in a variety of ways. While inflight, Customers can enjoy jawsome content via the Onboard Entertainment Portal’s custom Shark Week TV Series Channel. The Shark Week TV Series Channel houses a library of Shark Week episodes that Customers can sink their teeth into, plus a never-before-seen episode, Extinct or Alive: The Lost Shark, which Customers can watch nearly 30 days ahead of its premiere during Shark Week. The feeding frenzy continues as Southwest Customers tune in to Shark Week on Discovery Channel beginning Sunday, July 28, and continuing through Sunday, August 4, via Live TV onboard Southwest WiFi-equipped flights.
Southwest Employees also are getting in on Shark Week fun! Beginning July 8, Employees in 40 Southwest airports will display Shark Week materials in gate areas with which Customers can interact. Delivering on Southwest’s legendary Customer Service and Hospitality, Southwest Employees will host gate games to entertain fliers and celebrate the 31st anniversary of Shark Week, one of the most popular and longest-running televised summer events in history.
For fans who want to experience a diving excursion, Southwest is hosting a Dare to Dive sweepstakes from July 1-31 giving a chance to land a trip to Nassau, Bahamas, to enjoy a diving experience*. Anyone may visit Southwest.com/sharkweek for a chance to win roundtrip air travel (does not include taxes and fees of at least $5.60 per one-way flight) for winner and three guests, a $3,000 gift card to The Island House, a boutique hotel, and a $375 gift card to Stuart Cove’s for a diving excursion.
One of the most popular and longest-running televised summer events, Shark Week has celebrated cartilaginous creatures for more than 30 years. This year, viewers can enjoy hours of new content that will answer some of your most pressing shark-related questions. This year’s programming will immerse fans in the lives of sharks all around the world, from the Caribbean Sea to the island of Guadalupe, and many places in between.
*NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. Void where prohibited. Open to legal residents of 50 United States and the District of Columbia, excluding Alaska, age 19 years or older at time of entry. Limit one entry per person per day. All fields must be completed. Approximate retail value of prize: $4,975.00. For complete details and Official Rules, visit http://www.southwest.com/sharkweek. By submitting an entry, you agree to the Official Rules. By entering, information collected will be used in accordance with Sponsor’s Privacy Policy at Southwest.com. Sponsor: Southwest Airlines Co., 2702 Love Field Dr. Dallas, TX 75235. Enter by July 31, 2019 at 11:59 p.m. E.T. Air travel does not include taxes and fees of at least $5.60 per one-way flight.
CHICAGO, July 1 (Reuters) – Southwest Airlines expects it will have to remove the grounded Boeing Co 737 MAX jets from its flying schedule beyond the current Oct. 1 re-entry date following the discovery of a fresh safety issue, Chief Executive Gary Kelly told employees on Monday.
Last week, Boeing said that it would take until at least September to solve 737 MAX software issues – later than airlines had been expecting – after U.S. aviation regulators uncovered a new problem during simulator sessions.
“I’m sure this will cause us to have to take the MAX out of the schedule beyond Oct. 1,” Kelly said in an internal update, adding that the company would also see “what other modifications we might need to make our plans for this year because it’s obviously extending well beyond what I had hoped.”
Kelly did not elaborate on the possible modifications. So far, the Texas-based airline has tried to substitute its MAX routes with spare aircraft but has still been forced to cancel about 115 daily flights.
American Airlines Group and United Airlines Holdings , the other two U.S. carriers that operate the 737 MAX, have removed the jetliner from their flying schedules until early September.
The three airlines are expected to provide more details on the financial toll of a prolonged MAX grounding during second quarter results later in July.
Boeing’s fast-selling narrowbody was grounded worldwide in March following two deadly crashes within five months.
(Reporting by Tracy Rucinski, Editing by Rosalba O’Brien)
Southwest Airlines continues to await guidance from Boeing and the Federal Aviation Administration (FAA) on the impending 737 MAX software enhancements and training requirements. We are encouraged by the reported progress and proposed path forward for returning the aircraft to service, and we remain confident that, once certified by the FAA, the enhancements will support the safe operation of the MAX.
In April, we revised our flight schedule by removing the MAX through Aug. 5 to offer reliability to our operation and stability for our Customers during the busy summer travel months. With the timing of the MAX’s return-to-service still uncertain, we are again revising our plans to remove the MAX from our schedule through Sept. 2.
By proactively removing the MAX from scheduled service, we can reduce last-minute flight cancellations and unexpected disruptions to our Customers’ travel plans. We will proactively contact all Customers whose itineraries will be impacted by the revision to offer them maximum flexibility and re-accommodate them well in advance of their travel date. The revision will proactively remove roughly 100 daily flights from our schedule out of our total peak-day schedule of more than 4,000 daily flights.
We offer our apologies to our Customers impacted by this change, and we thank them for their continued patience.
