(Reuters) – Canada’s WestJet Airlines Ltd said on Monday it will be acquired by private equity firm Onex Corp in an all-cash deal for C$3.53 billion ($2.63 billion).
Including debt, the deal is valued at about C$5 billion.
As part of the deal, WestJet shareholders will receive C$31 for each share held, representing an about 67% premium to its closing price on Friday.
The investment will be led by Onex Partners, Onex’s private equity platform focused on larger investment opportunities and WestJet’s board has recommended that its shareholders vote in favor of the deal.
The private equity fund has a history of investing in aerospace, having previously held a major stake in Boeing supplier Spirit Aerosystems.
The deal is expected to close in the latter part of this year or early next year, the company said.
CIBC Capital Markets and B of A Merrill Lynch were the financial advisers to WestJet, while Barclays, Morgan Stanley and RBC Capital Markets advised Onex.
(Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur)
Low-cost Viva Air plans NYSE listing within two years
Budget carriers are disrupting transport across Latin America
Rendering of an Airbus A320neo Viva Air aircraft Source: Airbus SE
Viva Air, the Latin American group of carriers owned by a founder of Ireland’s Ryanair Holdings Plc, has plans for a third airline in the region plus an initial public offering, to cash in on strong demand for discount air travel.
The company aims to sell shares in New York within two years, Viva’s biggest shareholder, Declan Ryan, said in an interview in Lima. The shares could also be listed on another exchange, such as Colombia’s, he said.
LONDON (Reuters) – The chief executive of British Airways owner IAG ruled out bidding for Thomas Cook’s airline unit on Friday, a day after rival Virgin Atlantic was reported to be interested in part of the business.
Lufthansa and private equity fund Indigo Partners are seen among the front-runners for Thomas Cook’s airlines after the firm put it up for sale in February, to raise cash after a string of profit warnings in 2018.
IAG had previously been linked with the business, but on Friday, Chief Executive Willie Walsh said that his firm had not made a bid.
“In relation to Thomas Cook… we’re not putting in any bid,” Walsh told reporters.
He added in an analyst call later in the day that the firm was not actively pursuing M&A at the moment but was in a strong position to do so if something attractive came up.
Virgin Atlantic has put in a preliminary offer for the tour operator’s UK long-haul business, Sky News reported on Thursday. Thomas Cook and Virgin Atlantic both declined to comment on the report.
Lufthansa is a bidder for Thomas Cook’s German airline Condor with an option to acquire the remaining airlines of the British travel group, Lufthansa’s CEO said on Tuesday.
Indigo Partners is also a likely suitor for Thomas Cook’s airline business, sources said last week, adding that the deadline for initial bids was on Tuesday earlier this week.
An unexpectedly warm summer in northern Europe last year deterred holiday makers from booking lucrative last minute getaways, resulting in two major profit warnings for the world’s oldest travel company.
Worries about the firm’s ability to pay its debts pushed the yield on its euro-denominated bonds that mature in 2022 to a record high last Friday, and Thomas Cook said later in the day that it was in talks with its lenders about bolstering its finances.
Thomas Cook’s half-year earnings release for the six months to March 31 is due next Thursday.
(Reporting by Alistair Smout; Editing by Keith Weir)
MEXICO CITY (Reuters) – All 13 people aboard were killed when a private jet crashed between the U.S. city of Las Vegas and Monterrey in northern Mexico, authorities said on Monday.
The wreckage of the plane was found via aerial surveillance in a remote mountainous zone in the northern municipality of Ocampo, the government of Coahuila state said in a statement.
A photograph published on local television network Milenio showed what it said were the burnt remnants of the plane, broken into pieces, spread over charred earth.
The Coahuila government said the flight plan listed 13 people on board. It said no survivors were found.
Mexican media reported that the passengers had been to a boxing match between Mexican boxer Saul “Canelo” Alvarez and U.S. fighter Daniel Jacobs in Las Vegas on Saturday.
The nationalities of the victims were not immediately clear. The surnames of the three crew and 10 passengers published by the Coahuila government were all Hispanic.
The victims were aged between 57 and 19, according to a version of the passenger list published in Mexican media.
Newspaper Diario de Yucatan said on its website that among the victims were 55-year-old businessman Luis Octavio Reyes Dominguez, his wife, and their three children.
In a statement, Canada’s Bombardier Inc identified the jet as a Challenger 601 and said the plane had gone missing about 150 nautical miles from the northern Mexican city of Monclova.
Expressing its condolences to the victims, the company said it had been in touch with Canada’s transportation safety board and would work with the investigating authorities.
Mexican broadcaster Televisa reported the twin-engine jet lost contact on Sunday with air traffic controllers sometime after 5:20 p.m. local time (2220 GMT) as the pilot descended to avoid a storm.
Francisco Martinez, an emergency services official in Coahuila, told Milenio recent adverse weather conditions would form part of the investigation into the crash. However, he stopped short of saying weather had caused it.
(Reporting by Daina Beth Solomon, Noe Torres, Ana Isabel Martinez, David Alire Garcia and Allison Lampert; Editing by David Gregorio and Tom Brown)
LONDON (Reuters) – Thomas Cook has set a deadline of May 7 for expressions of interest in its airline business, with Indigo Partners and Lufthansa among the likely bidders, sources said.
The heavily-indebted British travel group put its profitable airline business up for sale in February after profit warnings in 2018 left it needing to raise cash.
Thomas Cook’s airlines business consists of Germany’s Condor, as well as British, Scandinavian and Spanish operations.
A sale of the business, in whole or in part, would enable the world’s oldest tour operator to invest more in its own hotels and improve its online sales.
A source familiar with the discussions said that Indigo and Germany’s Lufthansa appeared most interested in the business.
British Airways owner IAG should not be ruled out and easyJet has engaged in talks but is seen as less interested, the source added.
It is not clear whether Ireland’s Ryanair would bid.
Another source said that private equity groups KKR and Apollo might also look at taking over the whole of Thomas Cook.
The airlines business would provide access to valuable European slots linking Britain to Spain, Greece and Turkey.
Thomas Cook, Indigo, IAG and easyJet declined to comment, while Lufthansa and Ryanair were not immediately available.
Lufthansa executives have said repeatedly that the German airline wants to “play an active role” in consolidation.
Indigo, the private equity firm managed by Bill Franke, the veteran U.S. low-cost airline investor, has previously made investments in several airlines including Hungary’s Wizz.
Thomas
Cook has been revamping different parts of its business this year,
closing high street stores and reviewing its money division as it
focuses on holidays.
The company was hit badly in 2018 when a hot European summer deterred customers from booking holidays through the year.
One banking source said the airline would fetch less than 1 billion euros (£859 million). Thomas Cook has a current market value of just over £400 million.
Sources said that competition issues could influence which parts of the business different suitors go for.
Sky News has said China’s Fosun International, a Thomas Cook shareholder, was interested in its tour business.
(Reporting by Kate Holton and Clara Denina in London; additional reporting by Alistair Smout and Georgina Prodhan in London and Arno Schuetze in Frankfurt; Editing by Alexander Smith)
FILE PHOTO: A Thomas Cook Airbus A321-200 airplane takes off at the airport in Palma de Mallorca, Spain, July 28, 2018. REUTERS/Paul Hanna/File Photo
Toulouse, 18 April, 2019 – Manta Air, the new domestic carrier of the Republic of Maldives, has signed a Global Maintenance Agreement (GMA) with ATR, the world leader in the regional aviation market. This five-year contract covers the Maldivian airline’s full fleet for the repair and overhaul of easily replaceable components (Line Replaceable Units), propeller maintenance and an on-site leased stock of spare parts.
This long-term agreement also includes on-site technical support, through which a dedicated Customer Support representative assists Manta Air in their daily operations. The airline is benefitting from tailored recommendations to make an optimal start to operations, based on its very specific needs, and ATR’s expertise to enhance aircraft reliability.
“Manta Air’s aim is to raise the standards of the domestic aviation industry by providing the best flying experience for our passengers, and increased connectivity in the Maldives. As a tailor-made maintenance package, the ATR GMA responds specifically to our needs, and ATR’s expertise will ensure our brand new ATR 72-600s fly as much as possible. Our passengers depend on a reliable service and ATR’s GMA is a valuable tool to help us deliver this.” declared Edward Alsford, Chief Operation Officer of Manta Air.
Tom Anderson, Senior Vice-President Programs and Customer Services of ATR added: “Through this partnership, Manta Air’s is benefitting from our support and expertise from the very first stages of operations, enabling them to get the most value possible from their latest generation ATR aircraft. In an increasingly competitive market, initial parts provisioning, anticipation of spares requirements, parts reliability, repair management, maintenance costs optimisation and stock management are some of our operators’ crucial challenges.”
The first two ATR 72-600s of Manta Air, secured through Nordic Aviation Capital, have been delivered in late 2018, and a third aircraft has been delivered in early March 2019. With their dual-class configuration of 64 seats, Manta Air’s ATR 72-600s will help improve connectivity for the hospitality industry in the beautiful Maldivian atolls. They will be mainly operated on short sectors where ATR aircraft have already proven their operational and economic efficiency.
About Manta Air: Manta Air was founded in 2016 and is a joint venture between Deep Blue Private Limited, a local company with multiple investments in the tourism sector and Mr. Umar Mohamed Maniku. The company was created to cater for the need for more air domestic transport options and to support the rapid development of domestic airports and the fast-paced expansion of resorts and guesthouses across the country.
About ATR:
European
turboprop manufacturer ATR is the world leader in the regional aviation
market. ATR designs, manufactures and delivers aircraft, with its fleet
encompassing some 200 airlines in nearly 100 countries. The ATR 42 and
the ATR 72 are the best-selling aircraft in the below 90-seat category.
With continuous improvement as a driving force, ATR produces cutting
edge, comfortable and versatile turboprops that help airlines expand
their horizons by creating more than 100 new routes every year. Compared
with other turboprops, ATRs offer an advantage of 40% on fuel burn, 20%
on trip cost and 10% on seat cost, whilst offering the lowest noise
emissions. ATR is an equal partnership between leading aerospace firms
Airbus and Leonardo and benefits from a large global customer support
network allowing it to deliver innovative services and solutions to its
clients and operators all over the world. For more information, please
visit http://www.atr-aircraft.com. Follow us on Twitter – #ATRLeads
Bombardier announced today that it delivered its first European-based Global 7500 aircraft to long-time Bombardier customer, Niki Lauda, as production and completions of the award-winning business jet continue to ramp up as planned. Bombardier is on track to deliver between 15 and 20 Global 7500 aircraft in 2019.
Long-time Bombardier customer and F1 World Champion takes delivery of the first European-based Global 7500aircraft
Production and completions ramp up for Global 7500 jets proceeding as planned
The Global 7500 aircraft recently completed the world’s
longest-range business jet flight in history and broke the city pair
speed record between LA and NYC*
Winner of the 2019 Aviation Week Grand Laureate Award, the Global 7500 aircraft offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets
Bombardier announced today that it delivered its first European-based Global 7500 aircraft
to long-time Bombardier customer, Niki Lauda, as production and
completions of the award-winning business jet continue to ramp up as
planned. Bombardier is on track to deliver between 15 and 20 Global 7500 aircraft in 2019.
“We are thrilled to deliver our flagship Global 7500 business
jet to Niki Lauda, our esteemed customer for many years,” said David
Coleal, President, Bombardier Business Aircraft. “The Global 7500 aircraft
is simply the best business jet on the market. It sets the standard by
which all other aircraft in private aviation will be measured,
demonstrated by the prestigious design and aviation awards it has
garnered. The Global 7500 aircraft is the crown jewel of the industry.”
“I have enjoyed watching the evolution and growth of the Global
Aircraft program. I have always been impressed with the expertise,
craftsmanship and innovation that go into building every Global business jet,” said Niki Lauda. “The Global 7500
aircraft is the culmination of all the knowledge Bombardier teams have
gained over the years and I look forward to experiencing the range,
speed and comfort this jet has to offer.”
The Global 7500 jet is the latest in a series of Bombardier
business aircraft that Mr. Lauda has owned and piloted during his career
as an aviator. Previously, he operated a Global 6000, Global 5000 and Challenger 300 jet as his private aircraft.
Since its entry-into-service, the Global 7500 aircraft has unequivocally proven itself to be the highest-performing aircraft in the industry. The Global 7500
business jet has a top speed of Mach 0.925 and recently flew from
Singapore to Tucson, completing a record-setting 8,152 nautical mile
flight—the longest-range flight in business aviation history. In
addition, it also recently broke the city pair speed record between Los
Angeles and New York. The Global 7500 aircraft continues to assert its position as the leader in the business jet market.
The Global 7500 aircraft offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets. With its award-winning bespoke interior featuring a full-size kitchen and four true living spaces, the Global 7500 jet offers the ultimate in-flight experience. Setting the benchmark for the most exceptional cabin interior, the Global 7500 aircraft offers the most innovative features: Bombardier’s patented Nuage seat, meticulously designed for maximum comfort and the revolutionary nice Touch cabin management system (CMS), a new way to connect with the Global 7500 aircraft cabin through the Bombardier Touch dial, featuring business aviation’s first application of an OLED display.
About Bombardier
With over 68,000 employees across
four business segments, Bombardier is a global leader in the
transportation industry, creating innovative and game-changing planes
and trains. Our products and services provide world-class transportation
experiences that set new standards in passenger comfort, energy
efficiency, reliability and safety.
Headquartered in Montréal, Canada, Bombardier has production and
engineering sites in 28 countries across the segments of Transportation,
Business Aircraft, Commercial Aircraft and Aerostructures and
Engineering Services. Bombardier shares are traded on the Toronto Stock
Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier
posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
FILE
PHOTO: Bikes by a bike rental service of Icelandic airline WOW air are
seen in Reykjavik, Iceland, August 5, 2017. REUTERS/Michaela Rehle/File
Photo
(Reuters)
– Iceland’s WOW air became the latest budget airline casualty on
Thursday, halting operations and cancelling all future flights after
efforts to raise more funds failed.
WOW,
which focussed on low-cost travel across the Atlantic, advised stranded
travellers to seek flights with other airlines. It flew a total of 3.5
million passengers last year.
“This
is probably the hardest thing I have ever done but the reality is that
we have run out of time and have unfortunately not been able to secure
the funding of the company,” WOW CEO and founder Skuli Mogensen wrote in
a letter to the company’s 1,000 employees.
“I will never be able to forgive myself for not taking action sooner,” he added.
WOW
had earlier postponed flights on Thursday as it entered what it had
hoped were the final stages of an equity raising with a group of
investors.
“My
flight from Boston has been cancelled. Having a hard time getting
through to anyone on the phone. Can you help me at all?” Twitter user
Marc Solari wrote.
WOW replied with an apology and offer of further assistance.
WOW
is the latest budget airline to collapse as the European airline sector
grapples with over-capacity and high fuel costs. Recent failures
include Britain’s Flybmi, Nordic budget airline Primera Air and Cypriot
counterpart Cobalt.
“RESCUE FARES”
Other
airlines including, Icelandair, Easyjet and Norwegian stepped in
offering discounted ‘rescue fares’ to stranded passengers, according to
the Icelandic Transport Authority
WOW has been pursuing different avenues to raise money over the past few months.
It
ended talks with rival Icelandair last Sunday while veteran low-cost
airline investor Bill Franke also had cancelled a proposed investment
through private equity fund Indigo Partners.
Icelandair shares traded up 13 percent percent at 1215 GMT after the failure of a competitor.
Founded
in 2011 by entrepreneur Mogensen, WOW used smaller single-aisle planes
to fly between Iceland and many destinations in the United States and
Europe.
Its
website had advertised flights from London to cities such as New York
and Boston for as little as 150 pounds, although the journey went via
the Icelandic capital Reykjavik.
Norwegian
Air has a little over half of the market share in the fast-growing,
low-cost, long-haul transatlantic market, while WOW controlled a quarter
in 2018.
There are fears of a knock-on effect on Iceland’s important tourism industry.
Around
30 percent of tourists visiting Iceland last year flew with WOW and the
collapse could trigger a 16 percent drop in tourists this year,
research from Icelandic bank Arion showed.
( By Stine Jacobsen and Tommy Lund; editing by Darren Schuettler/Keith Weir)
Barcelona, Spain – December 06, 2018: WOW Air Airbus A321 approaching to El Prat Airport in Barcelona, Spain.
Melbourne, Florida, February 21, 2019 – Embraer Executive Jets delivered 53 Phenom 300 and Phenom 300E light jets in 2018, according to a report issued by the General Aviation Manufacturers Association (GAMA). This is the seventh consecutive year that the Phenom 300 achieves this mark, having accrued more than 490 deliveries since entering the market in December 2009.
“The Phenom 300’s continued success in the market is a reflection of our commitment to fascinate customers and deliver the ultimate customer experience in business aviation,” said Michael Amalfitano, President & CEO, Embraer Executive Jets. “The revolutionary interior design of the Phenom 300E adds even more value to this already popular model, reaffirming our commitment to continue to invest in true innovation.”
Originally launched in 2005, the Phenom 300 has sustained more than half of the light jet market share since 2012. The aircraft is in operation in more than 30 countries and has accumulated more than 780,000 flight hours. Embraer is continuously investing in the competitiveness of the Phenom 300 with enhancements to its comfort, technology and operational efficiency.
In October 2017, the new Phenom 300E was announced and entered service just five months later, in March 2018, and it is the only Phenom 300 model available to be acquired. The new aircraft is designated “E” for “Enhanced” in reference to its entirely redesigned cabin and the addition of the industry-leading nice® HD CMS/IFE (Cabin Management System/InFlight Entertainment) by Lufthansa Technik.
The Phenom 300E inherits the Embraer DNA Design, first introduced in its larger siblings, the Legacy 450 and Legacy 500 midsize jets. The application of this design in the Phenom 300E rendered an even more spacious cabin with more personalization options and greater ease of maintainability.
The revolutionary new interior design of the Phenom 300E starts with the all-new Embraer DNA seats, both designed and manufactured by Embraer. The new seats in the Phenom 300E feature an extendable headrest with bolsters, retractable armrest, broader backs for greater support, and extendable leg rests for improved ergonomics. The new table, side ledge, side wall, and valance design optimizes passenger mobility in the cabin with expanded aisle clearance and increased cabin space, rendering unmatched comfort and personalization in the light jet class.
The Phenom 300E features an industry-exclusive upper technology panel (upper tech panel) along the centerline of the aircraft’s ceiling, significantly improving passenger ergonomics. The innovative upper tech panel presents passengers with pertinent inflight information, while allowing for convenient interaction with cabin management controls, as well as the option of inflight entertainment with audio and video on demand via two slender swing-down seven-inch displays. The unit also offers an enhanced cabin lighting scheme, with a broad range of ambient mood selections, as well as integrates sleek, silent gaspers enhancing acoustic comfort. Bluetooth connectivity also allows passengers to view inflight information on their personal devices.
The Phenom 300E is also the fastest light jet, having established several speed records with the National Aeronautic Association and the Federation Aeronautique Internationale
About the Phenom 300E
The Phenom 300E performs among the top light jets, with a high speed cruise of 453 knots and a six-occupant range of 1,971 nautical miles (3,650 km) with NBAA IFR reserves. With the best climb and field performance in its class, the Phenom 300E costs less to operate and maintain than its peers. The aircraft is capable of flying at 45,000 feet (13,716 meters), powered by two Pratt & Whitney Canada PW535E engines with 3,360 pounds of thrust each.
The Phenom 300E offers a spacious cabin with the Embraer DNA Design and its baggage compartment is among the largest in its category. The largest windows in the class deliver abundant natural lighting in the cabin as well as in the private lavatory. The comfort of the seats, with recline and full movement capability, is enhanced by the best pressurization among light jets (6,600 ft. maximum cabin altitude). The Phenom 300E features distinct temperature zones for pilots and passengers, a wardrobe and refreshment center, voice and data communications options, and an entertainment system.
The pilot-friendly cockpit enables single-pilot operation and offers the advanced Prodigy Touch Flight Deck, based on the acclaimed Garmin 3000 avionics suite. The features it carries from a class above include single-point refueling, externally serviced lavatory, and an air stair.
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.
