Tag: Air Lease

Alaska Air Group Reports Fourth Quarter 2020 and Full-Year Results

January 26, 2021 / WIL BALDWIN

Financial Results:

Reported net loss for the fourth quarter and full year 2020 under Generally Accepted Accounting Principles (GAAP) of $430 million, or $3.47 per diluted share, and $1.3 billion, or $10.59 per diluted share. These results compare to fourth quarter 2019 net income of $181 million, or $1.46 per diluted share, and full year 2019 net income of $769 million, or $6.19 per diluted share.
Reported adjusted net loss for the fourth quarter and full year 2020, excluding payroll support program wage offsets, special items, and mark-to-market fuel hedging adjustments, of $316 million, or $2.55 per diluted share, and $1.3 billion, or $10.17 per diluted share. These results compare to fourth quarter 2019 adjusted net income of $181 million, or $1.46 per diluted share, and full year 2019 adjusted net income of $798 million, or $6.42 per diluted share.
Reported adjusted net debt of $1.7 billion, flat from December 2019 despite a 59% decline in operating revenues for the year.
Reported a debt-to-capitalization ratio, including certain short-term borrowings, of 61%.
Held $3.3 billion in unrestricted cash and marketable securities as of Dec. 31, 2020.

Liquidity and Fleet Updates:

Accessed approximately $5 billion in new liquidity in 2020, including $1.2 billion raised in the capital markets and approximately $600 million in bank financing.
Reached an agreement with the U.S. Treasury in January 2021 to receive an extension of payroll support totaling $533 million, $266 million of which was received on Jan. 15, 2021.
Extended the period available to draw funds under the CARES Act loan program from March 26, 2021 to May 28, 2021.
Announced plans to expand the mainline fleet and restructure the existing aircraft purchase agreement with Boeing. In total, Air Group will take delivery of 68 737-9 MAX aircraft between 2021 and 2024, inclusive of 32 previous purchase commitments and 13 aircraft to be leased from Air Lease Corporation.
Took delivery of Alaska’s first 737-9 MAX aircraft on January 24, 2021, which is expected to enter revenue service on March 1, 2021.
Permanently removed an additional 20 Airbus A320 aircraft from the fleet in the fourth quarter, resulting in 40 Airbus aircraft removed in 2020. A total of 31 Airbus aircraft remain in the operating fleet as of the end of the year.
Held $3.4 billion in cash and marketable securities as of Jan. 22, 2021, and total liquidity of $5.2 billion.

Operational and Guest Safety Updates

Announced seven new routes in the fourth quarter, including three “fun and sun” destinations connecting Anchorage to Las Vegas, Denver and San Francisco, and expanded service from Southern California to Austin and New York.
Eliminated change fees and extended the flexible travel policy for tickets purchased through March 31, 2021.
Implemented Next-Level Care initiative, which includes more than 100 measures designed to create a safe experience for guests and employees. These efforts were highlighted in the Alaska Safety Dance video.
Named the safest U.S. airline by AirlineRatings.com in their annual Top 20 Safest Airline report.
Launched the West Coast International Alliance with American Airlines on Jan. 1, 2021, which will unlock new benefits for Alaska Mileage Plan members in the spring.
Partnered with healthcare providers to offer rapid and standardized COVID-19 testing for those guests traveling to destinations that require a negative result.
Received diamond level certification from the Airline Passenger Experience Association for the health and safety standards Alaska and Horizon Air implemented to keep guests safe throughout their journey.
Launched pre-clearance program for guests traveling to the Hawaiian Islands from the West Coast with an approved negative COVID-19 test.
Announced a partnership with Microsoft to use sustainable aviation fuel to offset the environmental impact of certain business air travel.
Announced oneworld benefits for elite Mileage Plan members, providing tier status in the global alliance to Alaska’s elite members, as the company works toward joining oneworld on March 31, 2021.

Alaska Air Group Inc. (NYSE: ALK) today reported a fourth quarter 2020 GAAP net loss of $430 million, or $3.47 per diluted share, compared to net income of $181 million, or $1.46 per diluted share in 2019. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported a fourth quarter adjusted net loss of $316 million, or $2.55 per diluted share, compared to adjusted net income of $181 million, or $1.46 per diluted share in the fourth quarter of 2019.

The company reported a full-year 2020 GAAP net loss of $1.3 billion, compared to net income of $769 million in the prior year. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported an adjusted net loss of $1.3 billion, or $10.17 per diluted share for 2020, compared to adjusted net income of $798 million, or $6.42 per diluted share in 2019.

Click the link below to view the full results!

https://newsroom.alaskaair.com/2021-01-26-Alaska-Air-Group-reports-fourth-quarter-2020-and-full-year-results

Air Lease Corporation Delivers New Airbus A321-200neo Aircraft to Air Macau

December 15, 2019 / WIL BALDWIN

LOS ANGELES, December 12, 2019 – Today Air Lease Corporation (“ALC”) (NYSE: AL) announced the delivery of one new Airbus A321-200neo aircraft on long-term lease to Air Macau. This aircraft, featuring Pratt & Whitney PW1133G engines, is the first of two A321-200neo aircraft confirmed to deliver to the airline from ALC’s order book with Airbus and the first A321-200neo to deliver to the airline.

“We are pleased to announce this first of two A321-200neo aircraft delivery to Air Macau today and be the first to introduce the A321neo to the airline,” said Jie Chen, Executive Vice President and Managing Director, Asia – President, Air Lease Corporation Hong Kong Limited. “The ALC team has a long history of working with Air Macau and we are thrilled to continue to build our strong relationship with the airline by providing the most modern, fuel-efficient aircraft.”

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including expected delivery dates. Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission.

Air Lease Corporation Initiates Portfolio Sale of 19 Aircraft to Thunderbolt III Aircraft Lease Limited

November 13, 2019 / WIL BALDWIN

LOS ANGELES, November 11, 2019 – Air Lease Corporation (the “Company” or “ALC”) announced today that the Company initiated the sale of a portfolio of 19 aircraft to Thunderbolt III Aircraft Lease Limited (“Thunderbolt III”), a newly formed entity, and Thunderbolt III has now completed its equity and debt financing transactions. The aircraft comprise a mix of narrowbody and widebody jet aircraft that, as of August 31, 2019, had a weighted average age of 9.7 years and were leased to 18 lessees based in 15 countries. ALC and its Irish affiliate, ALC Aircraft Limited, will act as servicers with respect to the aircraft and ALC will act as portfolio manager. ALC estimates that the process of transfer and sale of the majority of aircraft will occur progressively during Q4 2019 and Q1 2020.

The Thunderbolt III structure included two series of Fixed Rate Notes and Equity Certificates. Approximately 15.6865% of the Equity Certificates were purchased by the anchor investor which is an investment vehicle managed by ITE Management L.P. and approximately 5% of the Equity Certificates were purchased by ALC.

Proceeds from the issuance of the Notes and the Equity Certificates will be used to acquire the aircraft, fund certain accounts for the Notes and pay certain expenses.

“We are pleased to announce the closing of Thunderbolt III. This transaction allows ALC to efficiently sell 19 aircraft while retaining the customer relationships through our continued management of these aircraft. I would like to thank our team and the Thunderbolt III investors for making this a successful transaction,” said Gregory B. Willis, Executive Vice President and Chief Financial Officer of ALC.

Mizuho Securities acted as Global Coordinator, Mizuho Securities, BofA Securities and Goldman Sachs & Co. LLC acted as Joint Lead Structuring Agents and Joint Lead Bookrunners, Wells Fargo Securities acted as Joint Lead Bookrunner, and BNP PARIBAS, Citigroup, J.P. Morgan, MUFG, RBC Capital Markets, SOCIETE GENERALE and SunTrust Robinson Humphrey acted as Passive Bookrunners (for the Notes) and Co-Managers (for the Equity Certificates).

Hughes Hubbard & Reed LLP acted as U.S. counsel to ALC and the Issuers, and Milbank LLP acted as U.S. counsel to the Global Coordinator, the Joint Lead Structuring Agents and the Joint Lead Bookrunners. EY acted as U.S. and Irish tax advisors. Walkers acted as Cayman Islands counsel and A&L Goodbody acted as Irish counsel. Vedder Price P.C. acted as counsel for ITE.

Canyon Financial Services Limited will act as the managing agent for the Issuers. Citibank, N.A. will act as trustee, security trustee, paying agent and operating bank. Wells Fargo Bank, N.A. will also act as the liquidity facility provider. DealVector, Inc. will provide certain investor services for the holders of the Notes and Equity Certificates.

Air Premia Announces Commitment for 5 Boeing 787 Jets

October 29, 2019 / WIL BALDWIN

– New Korean carrier to bolster future fleet with five additional super-efficient 787-9 Dreamliners

HONG KONG, Oct. 29, 2019 /PRNewswire/ — Boeing [NYSE: BA] and Air Premia today announced the Korean startup airline plans to buy five 787-9 Dreamliner airplanes, following an agreement to lease three 787-9 jets from Air Lease Corporation earlier this year. Air Premia, which plans to launch operations in 2020 is poised to become South Korea’s second Dreamliner operator.

The commitment, valued at $1.4 billion at list prices, will be reflected on Boeing’s Orders & Deliveries website when it is finalized.

“This is an exciting decision for Air Premia as we look to deliver a world-class experience to our customers, while also operating the most fuel efficient fleet,” said Peter Sim, CEO of Air Premia. “With the 787-9’s superior fuel efficiency and range capabilities, this investment fits perfectly with our unique business model and will position Air Premia for sustainable long-term growth.”

The 787-9 is a super-efficient widebody airplane that can fly 296 passengers in a standard configuration with a published range of 7,530 nautical miles (13,950 km). The Dreamliner model, powered by a revolutionary design and advanced engines, enables airlines to reduce fuel use and emissions by 20 to 25 percent compared to previous airplanes. The combination of unrivaled fuel efficiency and long range capabilities of the 787-9 has helped airlines save more than 40 billion pounds of fuel and open more than 235 non-stop routes.

“We are honored to welcome Air Premia as Boeing’s newest customer. As new entrants in Asia continue to launch innovative business models and strategies for growth, we are excited that Air Premia have selected the 787-9 Dreamliner to power their future fleet,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing, The Boeing Company. “The super-efficient 787-9 is a perfect fit for this new hybrid airline. The market-leading economics and capabilities of the Dreamliner will enable Air Premia to offer the best-in-class service to its customers at competitive fares.”

With its base at Seoul Incheon International Airport, Air Premia announced its plan to launch operations in September 2020. The carrier will initially operate regionally in Asia before expanding its network to Los Angeles and San Jose by 2021.

Azores Airlines Takes Delivery of its First A321LR

July 10, 2019 / WIL BALDWIN

Azores Airlines, the Azores archipelago-based carrier, has taken delivery of its first of three A321LRs to be leased from Air Lease Corporation “ALC”; NYSE: AL, becoming the latest operator of the long-range single-aisle aircraft.

Powered by CFM International’s LEAP-1A engines, the Azores Airlines’ A321LR comprises 190 seats in a two-class configuration (16 Business class seats and 174 seats in Economy) offering premium wide-body comfort in a single-aisle aircraft cabin and with single-aisle operating costs. With this new A321LR, the Portuguese operator will continue its strategy of growth and network expansion to European destinations as well as transatlantic routes between the Azores and North America.

The A321LR is a long-range (LR) version of the best-selling A320neo Family and provides airlines with the flexibility to fly long-range operations of up to 4,000 nm (7,400 km) and to tap into new long-haul markets, which were not previously accessible with single-aisle aircraft.

The A321LR will join the Azores Airlines’ Airbus fleet of five single-aisle aircraft comprising three A320ceo and two A321neo jetliners in service since last year. This new member of the fleet will provide Azores Airlines with more operational flexibility while leveraging on aircraft commonality.

The A320neo and its derivatives are the world’s best-selling single-aisle aircraft family with over 6,500 orders from more than 100 customers. It has pioneered and incorporated the latest technologies, including new generation engines and the industry’s reference cabin design, delivering 20% fuel cost per seat savings alone. The A320neo also offers significant environmental benefits with nearly a 50% reduction in noise footprint compared to previous generation aircraft.

@_AzoresAirlines #Airbus #A321LR

Boeing, Air Lease Corp., Deliver First Air Tahiti Nui 787-9 Dreamliner

October 9, 2018 / WIL BALDWIN

Boeing Press Release:

Boeing, Air Lease Corp., and Air Tahiti Nui celebrated the delivery of the airline’s first 787-9 Dreamliner, via lease from ALC. This is the first Boeing airplane to join the Tahitian airline, which plans to use the longest-range Dreamliner to replace aging A340s and connect its home base in the South Pacific with world capitals such as Paris, Tokyo and Los Angeles.

Air Tahiti Nui joins other carriers in the Pacific who operate long-distance routes in switching to the super-efficient and long-range 787-9. The airplane can fly up to 7,635 nautical miles (14,140 km), while reducing fuel use and emissions by 20 to 25 percent compared to older airplanes.

Air Tahiti Nui configured its new Dreamliner to seat 294 passengers in three classes. The cabin features a new business class equipped with 30 full lie-flat seats, along with 32 premium economy seats.

“Our dream has finally become reality with the arrival of Air Tahiti Nui’s first 787-9 Dreamliner,” said Michel Monvoisin, Chief Executive Officer and Chairman of Air Tahiti Nui. “The Tahitian Dreamliner will make flying to one of the world’s treasures an unforgettable experience, as we introduce new seats and a culturally inspired cabin on the 787. As we celebrate our 20th anniversary this year, the 787 Dreamliner will guide us towards another successful 20 years and beyond.”

The airline announced in 2015 it would lease two 787s through ALC and purchase two 787s directly from Boeing as part of its plan to upgrade its fleet for the future.

French Polynesia President Edouard Fritch and other government dignitaries joined the airline in celebrating the milestone delivery at Boeing’s South Carolina Delivery Center.

“We are pleased to deliver ALC’s first aircraft to Air Tahiti Nui,” said Marc Baer, Executive Vice President of Air Lease Corporation. “The capabilities of the 787 will help enhance Air Tahiti Nui’s commercial operations and will significantly increase the efficiency of its future fleet.”

“We are honored to welcome Air Tahiti Nui as a new Boeing customer and the latest member of the 787 Dreamliner family. We are confident the airplane’s market-leading efficiency and unmatched passenger comforts will transform the airline’s operation,” said Ihssane Mounir, Vice President, Commercial Sales & Marketing, Boeing Commercial Airplanes. “This delivery opens a new partnership between Boeing and Air Tahiti Nui, and demonstrates the strength of our partnership with ALC.”

Image from: www.boeing.com

Boeing, Air Lease, EVA Air Celebrate Airline’s First 787-9 Dreamliner

October 3, 2018 / WIL BALDWIN

Image and post from www.boeing.com

Boeing, Air Lease Corp., and EVA Air today celebrated the delivery of the airline’s first 787-9 Dreamliner, via lease from ALC, at Boeing’s South Carolina Delivery Center. EVA Air plans to debut the long-range and super-efficient airplane in November on international routes.

“This milestone delivery marks the beginning of a new era for EVA Air as we continue to revolutionize Taiwan’s dynamic commercial aviation industry,” said Steve Lin, Chairman of EVA Air. “The 787 Dreamliner’s extraordinary efficiency and passenger pleasing cabin features will further elevate EVA Air’s position as a five-star global airline. We are excited to introduce the 787 into our fleet and they will play an integral role in our success going forward.”

Built with lightweight composite materials and powered by advanced GEnx engines from General Electric (GE) Aviation, the 787 Dreamliner family lowers operating costs by more than 20 percent compared to previous airplanes, and nearly 10 percent compared to today’s competing jets.

Today’s delivery marks the first of 24 Dreamliners for the Taipei-based airline. In 2015, EVA Air announced a landmark order for 18 787-10 airplanes along with plans to operate four 787-9s and two 787-10s on lease from ALC. This remains the largest commercial airplane purchase in Taiwan’s history.

“ALC is pleased to deliver this historic first Boeing 787-9 to EVA Air and further our strong relationship with a world-class airline,” said Steven Udvar-Házy, Executive Chairman of Air Lease Corporation. “As the first airline in Taiwan to operate a Boeing 787-9 Dreamliner, EVA Air will continue to excel as a leading international airline with the most technologically advanced and fuel-efficient fleet.”

“We are extremely honored that EVA will be introducing the new 787 Dreamliner to their world-class fleet,” said Kevin McAllister, President and CEO of Boeing Commercial Airplanes. “This milestone delivery signals yet another chapter in our enduring partnership with EVA. I am confident that the market-leading capabilities of the 787 will contribute immensely to the airline’s long-term success.”

A member of Star Alliance, EVA Air serves international routes with approximately 565 weekly flights. Onboard the airline’s new 787 Dreamliner, passengers can experience EVA Air’s new Royal Laurel business class seats designed by Designworks, a BMW Group company. At 23 inches wide, the new seats feature privacy panels, full lie-flat capabilities as well as enhanced in-flight entertainment systems. EVA Air also partnered with Teague, to redesign its economy class seats, which are produced by Recaro.

To improve the operational efficiency of its 787s, EVA Air plans to use a variety of Boeing Global Services tools, including Maintenance Performance Toolbox, Airplane Health Management and the electronic flight bag product.

The airline will also use Component Services, where Boeing and its partners own, manage and maintain a global pool of high-value rotable parts, components and line-replaceable units (LRU) for convenient access.

Air Lease Corporation Sign Order for Eight 737 MAX Airplanes

April 3, 2018 / WIL BALDWIN

SEATTLE, April 3, 2018 /PRNewswire/ — Boeing [NYSE:BA] and Air Lease Corporation (ALC) announced they have finalized an order for eight more 737 MAX 8 airplanes, valued at $936.8 million at list prices. Air Lease Corporation (ALC), one of the world’s leading airplane lessors, has been a big buyer of the improved 737 airplane. This new order raises ALC’s total 737 MAX orders to 138.

“These aircraft perfectly fit ALC’s and our airline lessees’ growing need for additional 737 MAX 8 aircraft. Our success in MAX placements to date speaks to the strong market demand for these aircraft,” said John Poerschke, Executive Vice President of Air Lease Corporation.

The 737 MAX family is designed to offer customers exceptional performance, with lower operating costs and additional range to open up new destinations. The 737 MAX incorporates the latest CFM International LEAP-1B engines, Advanced Technology winglets, Boeing Sky Interior, large flight deck displays and other features to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

Boeing has delivered more than 100 737 MAX airplanes to over 20 customers worldwide, including four to ALC, with the fifth delivering in May 2018.

“The ALC team has a great track record of forecasting what airlines want in terms of new airplanes. Their growing commitment to the 737 MAX reflects the strong market demand for this airplane around the world,” said Ihssane Mounir, senior vice president, Global Sales & Marketing, The Boeing Company. “We’re pleased that ALC is having success with the 737 MAX’s capabilities and efficiencies which are critical traits lessors need in their portfolios.”

The 737 MAX is the fastest-selling airplane in Boeing history, accumulating more than 4,400 orders from 96 customers worldwide. For more information and feature content, visit www.boeing.com/commercial/737max.

Contacts:

Tom Kim
Boeing Communications
Office: +1 206-544-3206
tom.kim2@boeing.com

Sichuan Airlines signs purchase agreement for 10 Airbus A350-900’s

February 25, 2018 / WIL BALDWIN

Sichuan Airlines of China has signed a purchase agreement for 10 Airbus A350-900’s. The deal is subject to government approval, and valued at 200 billion yuan ($31.56 billion) at list price. This represents the largest aircraft order ever by the Chengdu-based airline, although major customers usually negiotiate large discounts.

The airline announced the order following the leasing of 4 A350-900’s through AerCap (3) and Air Lease Corporation (1). Those aircraft had been slated for Sri Lankan Airlines, but that airline canceled the order last year amid high debt levels. The first of the leased A350-900’s was spotted in September of last year sporting a panda livery. The airline expects the A350’s to serve the international market, and has applied for nonstop service from Chengdu to Los Angeles.

Sichuan Airlines is partially owned by the provincial government, as well as stakes held by China Southern, China Eastern, and Shandong Airlines. Sichuan is currently the largest Airbus operator in China, operating over 130 of the European aircraft. These operations including the A320-neo, A321, and both A330 200 and 300 series aircraft. It’s current long-haul flights operate to Moscow, Vancouver, and Auckland. The carrier has also placed a firm order for 20 of the Chinese built Comac C919 narrow body aircraft.

In the news for January 22, 2018

January 22, 2018 / WIL BALDWIN

Tiny Toilets On American Airlines 737 MAX Annoy Flight Attendants.

Click the link below for the full story!

Tiny bathrooms

Norwegian Airlines Sets Record for Fastest Transatlantic Flight.

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Norwegian Airlines sets record

Qatar Airways says delivery of first Airbus A350-1000 delayed.

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Qatar Airways Airbus A350-1000

Air Lease CEO says momentum building for new Boeing mid-sized jet.

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New Boeing midsize jet

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