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)
BRASILIA, Oct 28 (Reuters) – A proposed joint venture between United Airlines, Colombia’s Avianca Holdings and Panama’s Copa Holdings has been delayed due to the potential inclusion of a fourth partner, as well as problems at Avianca, the CEOs of two of the companies said.
United Airlines said last week it wants to include Brazil’s Azul SA, in which it already has a stake, in the planned tie-up with Copa and Avianca, the latest play by a U.S. carrier for a region expected to have significant air-travel growth in coming decades.
The three airlines had said in November 2018 they would file for U.S. antitrust approval “in the near term” in order to coordinate routes between South America and the United States, a bold move to expand their market share in the region. At the time, the carriers said they aimed to implement the agreements in 2020.
But almost a year after United, Copa and Avianca announced the preliminary joint venture plan, they have yet to file any paperwork with the U.S. Department of Transportation, seeking antitrust immunity. Now, the regulatory process may begin as late as next year, they said.
Copa Chief Executive Officer Pedro Heilbron said the group expects to file in early 2020, while Avianca CEO Anko van der Werff, said it would file between late 2019 and early 2020. Both spoke to Reuters in separate interviews on Monday on the sidelines of the ALTA Airline Leaders’ Forum in Brasilia.
Both said there was a delay on the original timeline.
United did not comment on a delay but said it planned to complete the application later this year or early next year. Azul had no comment other than saying it was “always looking for opportunities with its partners.”
The potential inclusion of Azul, which may be in the early stages of negotiations, has been one reason for the timetable slipping.
“Quite frankly, really completely open and honest, we haven’t had many discussions,” van der Werff said. “I personally haven’t had even one real, serious discussion at the CEO level about when to include and what to include.”
Both executives said they want Azul to be part of the joint venture – Brazil is by far the largest aviation market in the region – but its inclusion makes negotiations more difficult.
“It almost doubles the level of complexity,” Heilbron said.
Avianca has also gone through corporate turmoil. In May, United Airlines ousted the chairman and controlling shareholder at Avianca, revamping leadership.
“We should have filed with regulators this year but everything got delayed because of what has happened at Avianca,” Heilbron added.
(Reporting by Marcelo Rochabrun in Brasilia Additional reporting by Tracy Rucinski in Chicago Editing by Matthew Lewis and Sandra Maler)
BRASILIA (Reuters) – Brazil is determined to lure airlines to operate domestic flights in Latin America’s largest aviation market, and is taking meetings with at least three carriers, a senior government official told Reuters.
“We are going to talk with Jet Blue, we are going to talk with Volaris, a Mexican group … we are going to talk with Sky Airline, which is Chilean,” Ronei Glanzmann, Brazil’s civil aviation secretary, told Reuters on the sidelines of the ALTA Airline Leaders Forum, an industry conference.
“These are conversations to introduce Brazil to them, they do not mean that the airlines are saying that they will come here,” he added.
Glanzmann said the meetings with Volaris and JetBlue Airways Corp <JBLU> will take place on Monday.
A representative for Sky said they had canceled their participation in the ALTA conference due to the civil unrest in Chile, but declined to comment on taking a meeting with the Brazilian government. Jet Blue and Volaris did not immediately respond to a request for comment.
Brazil’s government has recently begun a push to open its aviation market, the largest in Latin America. Right-wing president Jair Bolsonaro has allowed foreign carriers to set up domestic carriers in the country.
Currently, Brazil’s domestic air travel market is highly concentrated among three airlines. Until earlier this year, there was a fourth player, Avianca Brasil, but the airline stopped operations in May after filing for bankruptcy operations late last year, highlighting the high risk and volatility of operating in Brazil.
Reaction to Brazil’s liberalization has been slow, but already Spanish airline group Globalia has declared its intention to operate a domestic airline in Brazil. But Glanzmann hopes others will too.
His strategy, he said, involves airlines dipping their toes in the Brazilian market first by operating international flights.
“We are working first with international routes, but we are already working so that those operations will become domestic operations in the Brazilian market,” Glanzmann said.
In the past year, four foreign low cost airlines have begun operating international flights to Brazil: JetSMART, which belongs to Indigo Partners, Sky Airline, Norwegian Air Shuttle <NWARF> and Argentina’s Flybondi.
Still, some industry watchers are skeptical that anyone will attempt to enter Brazil’s domestic market anytime soon.
“We don’t see anything changing in the short term regarding a new low cost airline operating domestically,” said Eduardo Sanovicz, who heads ABEAR, an industry group that represents Brazil’s two largest airlines. “For a company to start flying in Brazil, they will need to know that they will have the same costs as we do.”
Brazil’s carriers have long complained about high costs of operating in Brazil, especially value-added taxes on fuel that can be as high as 25%.
(Reporting by Marcelo Rochabrun; Editing by Nick Zieminski)
A day after unveiling the new PC-12 NGX single-engine turboprop aircraft at the National Business Aviation Association’s annual Convention and Exhibition (NBAA-BACE), Pilatus reports very strong demand for the new aircraft across the global Authorised Pilatus Sales Centre network.
Based on the PC-12 airframe, of which more than 1,700 aircraft have been delivered, Pilatus introduces the third major evolution of the aircraft, named the PC-12 NGX. Markus Bucher, CEO of Pilatus, revealed the new aircraft at a ceremony on Monday evening. More than 200 guests were on hand for the aircraft’s public debut.
First customers of brand-new PC-12 NGX
On the first public day of NBAA-BACE, three customers were eager to be first in line to purchase the new advanced version of the PC-12.
Australian born Dion Weisler, President and CEO of HP, is the first owner to upgrade from his PC-12 NG to the new NGX. Dion Weisler said: “As an existing, proud and active owner-pilot of a 2017 PC-12 NG, I am amazed by the substantial innovation improvements in what I thought was an impossible aircraft to improve on. I am thrilled to be customer number one for the new PC-12 NGX. Pilatus has done it again – reimagined aviation and taken an already perfect aircraft and magically redefined perfection.”
The first US customer of the new PC-12 NGX is Shon Boney, Co-Founder of Sprouts Farmers Markets, an American supermarket chain. The new PC-12 NGX will actually be Shon Boney’s fourth PC-12.
João Carlos Marinho Lutz will be the first Brazilian customer to take delivery of the new PC-12 NGX. Currently flying a non-pressurised turboprop, he chose the new Pilatus aircraft, because “only the PC-12 NGX can reach farms in remote places where I need to go and amazing destinations in Brazil with comfort, speed and efficiency.”
The new PC-12 NGX is already certified
The PC-12 NGX features a completely new BMW Designworks interior, larger cabin windows inspired by the PC-24 and fully reclining executive seats. The new Pratt & Whitney Canada PT6 E-SeriesTM engine comes with the Electronic Propeller and Engine Control. A fully integrated digital autothrottle and new avionics features by Honeywell, including a touch screen controller, emergency descent mode, tactile roll feedback and protection, and a low speed propeller quiet mode are just some of the features of the new cockpit environment.
The PC-12 NGX prototype first flew in December 2017. More than 600 hours of testing and certification flying were accumulated in Europe, USA and Canada as Pilatus quietly developed the new aircraft. The PC-12 NGX received certification just one week ago on Monday, 14 October 2019.
Pilatus will begin customer deliveries of the new PC-12 NGX early in the second quarter of 2020. The first production PC-12 NGX with serial number 2001 is present on the static display of Pilatus throughout the NBAA-BACE. Contact Pilatus or your nearest Authorised Pilatus Centre for aircraft availability.
São José dos Campos, Brazil, October 15, 2019 – Amaszonas Línea Aérea of Bolivia is the newest Embraer E-Jet operator. The airline started flying an E190 today between Santa Cruz de la Sierra’s Viru Viru Airport and La Paz. Amaszonas is adding a total of six E190s to its fleet. The airplanes will fly to several domestic and international destinations.
“We have been working with Amaszonas for a long-time. To see the E190 flying in the airline’s colors is really rewarding for Embraer,” said Reinaldo Krugner, Vice President, Latin America & Caribbean, Embraer Commercial Aviation. “The E190 is the ideal aircraft to support the airline’s growing capacity in a very disciplined way. Amaszonas is taking advantage of the E190’s low operating cost.”
The first two E190s are leased from GECAS and configured with 112 seats in a single class layout. The other four aircraft will be leased from CDB Leasing and have 110 seats in a single class layout. The airline will also operate the E190s at Montevideo’s Carrasco International Airport in the future.
“The range of the E190 allows us to replace our smaller regional jets and support our expansion plans in Bolivia and Uruguay,” Sergio de Urioste, President & CEO of Amaszonas Línea Aérea. “Our E-Jets give us the flexibility we need to add more frequencies and destinations. We know our passengers are going to love the comfort of the E190 cabin.”
Embraer and Amaszonas have also signed a Flight Hour Pool Program agreement until 2024 to provide repairable component support for the carrier’s fleet of up to six E190s. The multiyear program features both the Pool Program and repair management services for the carrier’s fleet of E-Jets, including material services engineering and advanced component exchanges from Embraer’s spare parts distribution center in Fort Lauderdale, Florida.
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.
SAO PAULO (Reuters) – Brazil airline Azul SA said on Monday that it is in discussions to join a planned partnership with United Airlines, Avianca Holdings and Copa Holdings for flights between the United States and Latin America.
The three airlines announced their plan to coordinate routes in November 2018, but have yet to receive regulatory approval to go ahead. United owned 8.2% of Azul’s preferred shares last month, according to the Brazilian airline’s website.
(Reporting by Marcelo Rochabrun)
E2-195 plane with Brazil’s No. 3 airline Azul SA logo is seen during a launch event in Sao Jose dos Campos
The first VIP AW109 Trekker for the European market is destined for the United Kingdom where Leonardo has a fleet of almost 100 VIP helicopters
Leonardo has a global fleet of over 830 VIP helicopters performing private, charter, scheduled, corporate transport, air-taxi, tourism and VVIP transport
With skids and high levels of customization, the AW109 Trekker is slated to increase Leonardo’s impressive VIP market share (44% in twin engines)
The first Leonardo AW109 VIP Trekker helicopter for a European customer debuts today at the Monaco Yacht Show – Leonardo stand QA13 / Quai Antoine 1er. The Monaco Yacht Show (25 to 28 September) is one of the most important international luxury yacht showcases. After the show, the VIP Trekker will fly to the United Kingdom for delivery thanks to Sloane Helicopters, Leonardo’s distributor for over twenty years in the United Kingdom and Ireland. The privately-owned aircraft will be operated by Apollo Air Services, available for VIP charter market.
The AW109 Trekker is the newest model within Leonardo’s light twin-engine helicopter range. The Trekker joins a fleet of Leonardo VIP helicopters that lead the UK and Irish market: almost 100 aircraft with nearly 90% represented by the AW109 series (Power, Grand and GrandNew). This market is second only to Brazil where about 130 Leonardo VIP helicopters fly amongst 400 San Paolo helipads.
The helicopter maker and the distinguished Italian Style of its VIP helicopter design are embraced around the world, boasting a 44% global share in the twin-engine VIP helicopter market. The Company’s fleet of 2,300 civil helicopters are used for law enforcement, offshore transport, utilities, search and rescue and VIP / corporate transport. More than 830 aircraft carry out a range pf passenger transport missions including private, charter, scheduled flights, corporate, air-taxi, tourism, VVIP.
Leonardo’s VIP helicopter models all share a strong commitment to high performance, versatility, safety, reliability, support and training services, design and a high level of customization. The Company features the largest range of executive, corporate and government transport helicopters including the AW119Kx single engine 1.8 tonne, the AW109 series, the AW169, AW139, AW189 and the three-engine 16 tonne.
With the AW109 Trekker Leonardo is destined to increase its notable market share, thanks to features that combine the qualities of the AW109 Grand—long recognized by operators—including its spacious cabin, state-of-the-art Genesys Aerosystems avionics and skids, particularly suitable for landing on yachts. The combination is unmatched in terms of cost/effectiveness, technology and performance.
Sloane Helicopters will be maintaining two AW109 Trekkers in UK. Building on the qualities that have made the AW109 series the benchmark helicopters in its category, Sloane will be performing demonstration flights with the new Leonardo light twin inviting operators to learn more about its unique characteristics.
NOTE TO EDITORS ON THE AW109 TREKKER VIP
The AW109 Trekker combines excellent performance, the latest technology and high safety standards to provide customers an ideal combination of comfort and capabilities. The finest materials and the highest levels of craftsmanship give the helicopter a unique style and ensure passengers a pleasant journey.
The AW109 Trekker is equipped with a latest generation Genesys Aerosystems glass cockpit that can be configured according to customer needs: one or two pilots, VFR or IFR.
The large and bright cabin can be configured in a variety of layouts and boasts an effective soundproofing system to offer passengers an extremely pleasant flight. Large sliding doors on both sides ensure easy entry and exit, while the luggage compartment offers high load capacity.
It can carry 6/7 passengers and has a maximum take-off weight of 3.175 kg. Over 60 AW109 Trekkers have already been sold to customers around the world to date for multiple missions such as VIP transport, offshore, utilities, EMS / SAR, law enforcement.
FILE PHOTO: A Boeing 737 MAX aircraft is seen grounded at a storage area in an aerial photo at Boeing Field in Seattle
NEW YORK (Reuters) – The U.S. Federal Aviation Administration process for certifying new airplanes is not broken but needs to be improved, the chair of an international panel of air-safety regulators, tasked to review Boeing Co’s <BA> 737 Max, said on Friday.
Speaking on the sidelines of an event at a New York City college, Christopher Hart, chair of the multi-agency panel, said there was no need to question the agency’s overall way of certifying airplanes.
“The U.S. aviation system each day transports millions of people safely, so it’s not like we have to completely overhaul the entire system, it’s not broken. But these incidents have shown us that there are ways to improve the existing system,” Hart said, referring to fatal crashes of a Lion Air 737 MAX in Indonesia and an Ethiopian Airlines 737 MAX five months apart that killed a total of 346 people.
The MAX remains grounded and Boeing has not set when it will conduct a key certification test flight. Some in Congress and in aviation have criticized the FAA’s longstanding practice of delegating certification tasks to manufacturers.
Michael Perrone, who heads the Professional Aviation Safety Specialists union, said at a House hearing in July that external entities designated by the FAA “are now performing more than 90 percent of FAA’s certification activities despite serious concerns that oversight is lacking.”
Hart, former chairman of the National Transportation Safety Board (NTSB) and a licensed pilot, heads the Joint Authorities Technical Review, a panel including air-safety regulators from the United States, Canada, China, Indonesia, European Union and Brazil.
Reuters reported on Sept. 17 the review’s recommendations will include citing regulations that need to be harmonized internationally and where communications can be improved at the FAA and among international regulators, citing a person briefed on the matter.
Hart on Friday said the panel would release its recommendations to the FAA “shortly,” but declined to provide more details on the timeline. He said the panel’s goal was not for all of its members to agree, but to provide a wide range of opinions and recommendations to the FAA.
Hart spoke to students the Vaughn College of Aeronautics and Technology in Queens. Asked by a student whether passengers can be expected to fly again on a 737 MAX, Hart said he predicted people would “sooner or later forget” about the crashes and investigations.
“This will be the safest airplane out there by the time it has to go through all the hoops and hurdles,” he said.
He also was optimistic when asked whether the deadly crashes would spell the end for Boeing’s 737 MAX programme.
“It will be a cold day in hell before Southwest starts moving away from 737s because that’s all they got,” Hart said, referring to Southwest Airlines Co <LUV.N>, which has cancelled flights into January because of the MAX grounding.
A Southwest Airlines spokesman declined to comment directly on Hart’s comments but said the airline has “no plans to veer away from our all-737 fleet.”
(Reporting by Tina Bellon in New York; Additional reporting by David Shepardson; Editing by Daniel Wallis)
SAO JOSE DOS CAMPOS, Brazil (Reuters) – Embraer <ERJ> hopes to see more orders for its newest passenger plane by the end of the year, an executive said on Thursday, as Boeing <BA> readies to take over the Brazilian planemaker’s commercial jets division in what could mark the next phase of its rivalry with Airbus <EADSY>.
Manufacture of the E195-E2, as Embraer’s plane is known, will soon be controlled by Boeing, which needs regulatory approval to close on the deal to buy 80% of Embraer’s commercial jets division for $4.2 billion.
Embraer on Thursday delivered its first E195-E2 plane, which will seat about 140, to Brazil’s No. 3 airline Azul <AZUL> at its headquarters in Sao Paulo state. Embraer executives said the delivery should spur more orders, helping to fend off fresh competition from Airbus.
“I expect we will close more transactions, I’m hopeful … before the end of the year,” John Slattery, head of Embraer’s commercial plane division, told Reuters. “I’m not seeing a big wave of people that need to delay, or wish to delay because of the Boeing transaction.”
The new plane comes as the landscape for jets with under 150 seats is changing drastically. Airbus bought control of the Bombardier division competing directly with Embraer in 2018, followed by Boeing’s deal to take over Embraer’s commercial plane division.
The result would expand the global duopoly for jumbo jets into a smaller category, as Boeing and Airbus work to lure orders across a broader lineup of commercial aircraft.
Azul was founded by U.S. airline executive David Neeleman, who also founded JetBlue Airways <JBLU>, which was a launch customer and key customer for Embraer’s last generation of jets.
“We can have 18 more seats with this plane, with a travel cost that is 15% less,” Neeleman said of the improvements in the new generation. “If you have something that is 15% cheaper, you just want that thing, you don’t want anything else.”
STIFF COMPETITION
Embraer is banking on the fuel efficiency of this new generation, to the point it has marketed its E195-E2 to customers as the “profit hunter,” painting the jet with livery resembling a shark in the plane’s nose.
But for now, Embraer has struggled to compete directly with Airbus. Carriers and plane lessors had placed 551 orders for the Airbus A220 family as of June, but Embraer had racked up only 168 for its new family of E2 jets, down from 200 in 2014.
Part of Embraer’s struggles stem from its smaller E175-E2 plane, which has been a hard sell to U.S. regional airlines due to labor contract restrictions. Embraer dropped 100 of those planes from its order book after resistance from pilots made it unclear if buyer Skywest <SKYW> would be able to fly them.
“We didn’t design an aircraft just for the U.S. market,” Slattery said, adding that he hopes his company will secure an order from a customer somewhere else in the world this year. Currently they have none, although Slattery said Skywest remains committed, if pilots allow it.
JetBlue also dealt a blow to Embraer last year when it decided to replace its old Embraer fleet with Airbus A220s, a decade after Neeleman left the company.
JetBlue cited the advantages of A220’s longer range, as well as a broader package with Airbus including larger planes — the kind of arrangement that Boeing could offer with Embraer’s jets in its portfolio.
(Reporting my Marcelo Rochabrun in Sao Jose dos Campos, Brazil; Additional reporting by Allison Lampert in Montreal; Editing by Alistair Bell and Marguerita Choy)
