Air India picks up former Jet Airways international allocations

Air India has been allocated rights to operate nearly 20,000 weekly seats to Hong Kong, Dubai, Qatar, Singapore and the UK that were previously used by Jet Airways.

Civil aviation minister of state Hardeep Singh Puri disclosed the rights awards to Air India and its Air India Express unit in a written question to India’s Rayja Sabha, which are temporary until the end of the 2019 scheduling season.

Asset Image

Compared to existing schedules, Air India has the potential to significantly increase capacity on most routes, and for the first time will give it access to the Qatar market.

The flag carrier was also awarded domestic slots to operate 22 services, mostly from Delhi, Chennai and Bengaluru.

No details on seat awards to other carriers were disclosed by Puri, however SpiceJet has previously been awarded a number of Jet’s former routes, and had been expecting more in future.

IndiGo and Vistara are also expected to seek some of the former Jet allocations.


Source link

قالب وردپرس

Please follow and like us:
Share this:

Court pushes for quick resolution of Jet Airways insolvency

India’s National Company Law Tribunal is pushing for the corporate insolvency resolution process for Jet Airways to be fast-tracked, citing the national importance of the matter.

An order from the Mumbai bench of the court appointed Ashish Chhawchharia from Grant Thornton as the interim resolution professional (IRP) and declared a moratorium on any action be creditors to recover assets or lodge legal action against Jet.

That moratorium will run until the completion of the insolvency process, the court approves a resolution plan, or a liquidation is ordered.

Chhawchharia has been ordered to provide fortnightly progress reports to the court, with the first due on 5 July.

He was also directed to “make every possible effort to complete the corporate insolvency process at the earliest possible time”.

Under India’s Insolvency and Bankruptcy Code, the IRP has a statutory 180 day period to complete the resolution plan, which can be extended by a further 90 days.

The court, however, asked the IRP and creditors to “expedite the matter and try to finalise the resolution plan on the fast track mode and they should not preferably wait for the completion of the statutory period of 180/270 days timeline permissible under IBC.”

Insolvency proceedings have also been launched in the Netherlands against Jet, however the Mumbai court directed Chhawchharia not to be influenced by that, given there is no specific agreement on insolvency between the two governments.

State Bank of India, which is owed Rs18 billion ($258 million) from the carrier, filed for insolvency resolution after it failed to secure an investment deal with Etihad Aviation Group and other investors to take over the airline.

The order notes that Jet’s debts to operational creditors had exceeded $340 million by mid-December 2018. Pilots are also owed around Rs5.5 billion in unpaid wages, while the airline’s engineers submitted a similar sized claim to the court.

Jet was forced it to ground most of its fleet in late 2018 and reduce its operations until it suspended them on 17 April after it could not secure additional funding to maintain its operations.


Source link

قالب وردپرس

Please follow and like us:
Share this:

Jet Airways to face insolvency action

Two of Jet Airways’ creditors have started court proceedings that could bankrupt the carrier potentially jeopardising the planned sale of the grounded carrier.

The Mumbai bench of the National Company Law Tribunal has fixed a 13 June date to hear pleadings from truck dealer Shaman Wheels and water bottler Gaggar Enterprises to declare the airline insolvent.

FlightGlobal reached out to Jet Airways for comment but had not received a response at the time of publishing.

If the motion moves ahead, it will likely scupper plans by the carrier’s banking consortium to sell a controlling stake to a strategic investor. State Bank of India is the bank leading the consortium, and its SBI Capital Markets unit is handling the sale.

Etihad Airways and Indian conglomerate Hinduja Group have both indicated that they could invest in the carrier, but there has been little sign of any progress towards a sale.

Hinduja Group was not immediately available for comment.

Jet Airways suspended operations on 17 April after failing to secure emergency funding from its banks. Since then, around 100 of its 120 aircraft have been repossessed by banks and lessors, while a number of senior staff, including chief executive Vinay Dube, have resigned.


Source link

قالب وردپرس

Please follow and like us:
Share this:

​All Nippon Airways brings Virgin Orbit to Asia

The parent company of All Nippon Airways will partner with air launch company Virgin Orbit by granting it access to the fleets of Japan’s largest airline to send small satellites into orbit with its wing-carried LauncherOne rockets.

Pending government approval, Japan would be the site of LauncherOne’s Asia debut for its plan to make Boeing 747 aircraft into flying launch pads, ANA Holdings and Richard Branson’s Virgin say in a joint statement on 6 June announcing the memorandum of understanding.

Virgin Orbit is test flying its 747-400 aircraft nicknamed “Cosmic Girl” in Mojave Air and Space Port in California as part of the effort to gain approval from US regulators. The plan for each launch contract is to carry a single LauncherOne on the wing of a 747 with a satellite attached and drop it from the flying aircraft before the rocket ignites and propels into orbit.

Asset Image

Virgin Orbit

Virgin Orbit’s LauncherOne system is now in the final phases of testing having completed flights with rockets attached to the wings, and the company aims to test launch its first rocket into orbit “later this year”.

Virgin says it has “multiple flight vehicles in production” and the company is coordinating on potential future missions with the Kennedy Space Center in Florida, Andersen Air Force Base in Guam, Spaceport Cornwall in the United Kingdom and the Taranto-Grottaglie Airport in Italy. Virgin Orbit will also partner with Space Port Japan for a launch site.

“This collaboration plays to the strengths of each of our companies and will allow both ANA Holdings and Virgin Orbit to strengthen international ties for space activities while working towards important goals that will have a real impact on the world we share,” says Toyoyuki Nagamine, senior-executive-vice president of ANA Holdings.

Asset Image

Virgin Orbit

Air launch to orbit is being sold as an option for companies seeking to refresh satellite constellations one payload at a time rather than waiting longer for a ground-launched rocket to become available. Virgin Orbit has already contracted services for civilian clients including satellite broadband provider OneWeb, while Mandy Vaughn, president of Vox Space, oversees the defence contracting arm of Virgin Orbit. This year, Vox Space will launch a group of cubesats for the US Defense Department Space Test Program which is overseen by the US Air Force Space and Missile System Center.

“We have a collection of payloads from the Space Test Program that will be doing a variety of experiments for a variety of customers,” she says.

Vaughn, who left the US Air Force as a captain involved with space operations, says air launch to orbit could be useful for security contractors who need to get satellites into orbit on short notice.

Vox Space is one of three companies chosen in April to compete in the DARPA Launch Challenge, which will offer multiple prizes of up to $12 million each to prove techniques that can make two launches of satellites into orbit during a short window of time. DARPA says the launch competition could take place in January or February 2020 at locations that have not yet been disclosed.

Asset Image

Virgin Orbit


Source link

قالب وردپرس

Please follow and like us:
Share this:

Qatar Airways wants to be an NMA launch customer: chief

Qatar Airways would like to be a launch customer for the Boeing’s proposed New Mid-market Airplane if the manufacturer decides to go ahead with the programme.

The US manufacturer has been discussing with potential customers the possible launch of an all-new medium-haul twinjet in the 200-270 seat category. Qatar Airways group chief executive Akbar Al Baker told Richard Quest of CNN in an interview at the IATA annual general meeting in Seoul that he’s impressed with what he’s seen.

“What I’ve been shown by Boeing, I’m extremely interested in that aeroplane and I would like to be a launch customer,” says Al Baker.

Qatar Airways is a major operator of Boeing widebodies, but its single-aisle fleet comprises Airbus A320-family aircraft.

Boeing aims to decide next year whether to formally launch the NMA with service-entry slated for 2025.


Source link

قالب وردپرس

Please follow and like us:
Share this:

American yet to realise US Airways merger benefits: Moody’s

American Airlines may have yet to realise the full revenue benefits of its 2013 merger with US Airways, suggests Moody’s Investors Service in a new report.

“American’s inferior operating margins imply that the company has yet to capture the operating benefits of the 2013 merger with US Airways,” the rating agency said in a credit opinion on 21 May.

Moody’s expects the Fort Worth, Texas-based carrier’s operating margin to lag peers Delta Air Lines and United Airlines by at least 350 basis points in 2019, it says. It cites American’s significantly smaller international network – it only represented roughly 27% of revenues in 2018, compared to around half at its competitors – among reasons for this discrepancy.

American’s pre-tax operating margin was 2.3% for the first quarter, its financial statements show. Delta reported a pre-tax operating margin of 9% and United 3.8%.

The suggestion that the American-US Airways merger has not lived up to its promises is likely to raise questions. When the carriers announced their merger on Valentine’s Day in 2013, then-US Airways chief executive Doug Parker – now chief executive of American – and then-American chief executive Tom Horton outlined $1.05 billion in annual revenue synergies from the deal, a forecast that was raised to $1.45 billion by the beginning of 2014.

Financial reports indicate the airline has met those initial targets. Operating revenues increased by $5.8 billion to $44.5 billion at end-2018 since end-2012, its financial filings show. Operating costs have also increased, rising by $4.2 billion to $41.9 billion at the end of last year.

American declines to comment on the Moody’s report.

The carrier’s performance has slipped, both operationally and financially, in recent months to the point where JP Morgan analyst Jamie Baker asked executives last July if the carrier had fallen to a symbolic third place behind Delta and United.

“Our competitors are doing a nice job and one of them had a lot more upside than we did,” said Parker in response to Baker’s question. “But it doesn’t mean we don’t think we’re going to go do what we planned to do, which is to be the best airline in the world.”

American is in the midst of a programme to boost revenues and margins. The majority of its roughly 2.5% capacity growth this year will be at Dallas/Fort Worth airport, which executives say is its most profitable hub and expected by analysts to boost margins more than growth elsewhere.

In addition, the carrier is in the later innings of its product segmentation programme that includes basic economy fares and an international premium economy cabin. It completed the installation of the latter on its widebody fleet, save the Airbus A330-300s and Boeing 767s it plans to retire, in April – well ahead of United’s end-2020 target and Delta’s end-2021 goal.

Moody’s expects these and other commercial initiatives to contribute roughly $900 million to American’s operating income in 2019. This is expected to produce a “modest” improvement in operating margins.

American still faces operational and cost challenges. Morgan Stanley warned in a report on 20 May that, with 80% of its union contracts up for renegotiation in the next 18 months, the airline could face a 5-10% jump in labour expenses by end-2020. In addition, an alleged slowdown by mechanics plus the grounding of its 24 Boeing 737 Max aircraft have led to thousands of flight cancellations to-date this year.

The carrier also remains the most highly-levered US carrier, according to Moody’s. Its debt-to-EBITDA ratio stood at 5.4x at the end of March, and is expected to decline to roughly 4.7x by year-end.

The rating agency does not expect American to pre-pay debt and instead to use free cash flow to fund share repurchases.


Source link

قالب وردپرس

Please follow and like us:
Share this:

Bangkok Airways first quarter profit down 22%

Bangkok Airways posted a 22% decline in its first quarter operating profit to Bt870 million ($27.6 million) as expenses rose faster than revenue.

Total revenue for the quarter ended 31 March was static at Bt7.79 billion. Revenue from the airline and airport segments all saw declines, while revenue from the airport-related services and other businesses posted double digit growth.

Asset Image

Bangkok Airways’ operating profit fell 22% during the three months to 31 March

Bangkok Airways

RPKs fell 3.2% despite a 0.8% decline in ASKs. Overall load factor fell 1.8 percentage points to 74.6%, as loads on domestic flights fell while international load factor remained steady.

While passenger yield per kilometre was down 1.5% to Bt4.72, RASK was up 1.8%, and CASK rose 1.1%.

Total expenses were up 3.6% to Bt6.92 billion, as higher fuel, maintenance and personnel expenditure took a hit on the carrier.

Attributable net profit fell 29% to Bt504 million.

Cash and cash equivalents at 31 March amounted to Bt4.79 billion, a slight increase from the Bt4.7 billion it had on the same date in 2018.

Bangkok Airways launched Bangkok-Cam Ranh and Chiang Mai-Krabi services, added flights on the Krabi-Bangkok, Bangkok-Da Nang and Bangkok-Mandalay routes, while slightly reducing the Chiang Mai-Bangkok frequency over the three months.

The airline also saw its net fleet size grow from 38 to 41, with the delivery of two Airbus A319s and three ATR 72-600s, while it phased out two ATR 72-500s.


Source link

قالب وردپرس

Please follow and like us:
Share this:

Jet Airways chief resigns

Jet Airways chief executive Vinay Dube has resigned.

In a statement to the Bombay Stock Exchange, the Indian carrier says Dube is stepping down “with immediate effect due to personal reasons”.

Dube became Jet’s chief in August 2017, having previously served as senior vice-president for Asia-Pacific at Delta Air Lines.

Jet also today disclosed the resignation of finance chief Amit Agarwal, likewise citing personal reasons.

The carrier suspended operations on 17 April, after it was unable to secure emergency funding.

A process to find new strategic investors is ongoing. Etihad Airways has confirmed its willingness to “reinvest” in the stricken airline but would require other suitable investors to assist in the recapitalisation.


Source link

قالب وردپرس

Please follow and like us:
Share this:

Four more Jet Airways 737s to be deregistered

Jet Airways’ fleet continues to dwindle, with ALAFCO, GECAS and Saroja Aviation submitting applications to deregister three Boeing 737-800s and one -900ER between them.

ALAFCO has requested the deregistration of 737-800s bearing MSNs 39066 and 39065, which are both mortgaged to Nord LB, records from India’s Directorate General of Civil Aviation show.

Saroja Aviation, meanwhile, is seeking to take back 737-800 MSN 37960, which is mortgaged to Bank of Baroda’s Hong Kong branch.

Lastly, GECAS is preparing to take back 737-900ER MSN 36539, which is owned by Celestial Aviation Trading 49.

Jet’s situation remains parlous, with a deadline on binding bids to buy the defunct aircraft reportedly set to expire on the afternoon of 10 May.

It is unclear how many – if any – proposals have been submitted by SBI Caps, which is running the process to sell up to a 76% stake in the airline.

SBI Caps is running the sale on behalf of the carrier’s lending consortium, which is led by State Bank of India. The group of banks took control of the carrier in March after a debt-for-equity swap, and initiated the process to find a new strategic investor.

They also signalled plans to advance the carrier Rs15 bilion ($214 million) in emergency funding to keep it operational. After those funds failed to eventuate, the airline suspended operations on 17 April.

Separately, the BSE stock exchange has raised a query with Jet over reports that the Ministry of Corporate Affairs has recommended investigating the company over alleged irregularities in its books.

Jet had not responded at the time of publishing.


Source link

قالب وردپرس

Please follow and like us:
Share this:

More Jet Airways 737s, ATR 72 set to leave

India’s Directorate General of Civil Aviation (DGCA) has received more requests to deregister five aircraft that were operated by Jet Airways, comprising three Boeing 737-800s, one 737 Max 8, and an ATR 72-500.

Filings show that Pembroke Aircraft Leasing has requested the deregistration of 737-800s with MSNs 36825 and 36827, while owner Wings Aviation 37961 has requested the third of the type (37961) to be deregistered.

The latter request appears to have been filed by Wilmington Trust, which is named as the mortgagee of the aircraft.

SMBC Aviation Capital has also requested the same action for a 737 Max 8 (44863), while a request has also been made to have ATR 72-500 MSN758 struck from the register.

Again, the ATR request appears to have been filed by Investec Bank, which is the mortgagee. Its owner is listed as INV Jet Leasing, which has a Dublin address.

As of 8 May, the DGCA has requests covering 14 aircraft pending and completed 60 deregistrations of aircraft that were formerly operated by Jet Airways.

Cirium’s Fleets Analyzer shows that five of the 737-800s that were operated by Jet have been lease to SpiceJet. Four of those are managed by Avolon and one by Aircastle.


Source link

قالب وردپرس

Please follow and like us:
Share this:
icon-car.pngKML-LogoFullscreen-LogoGeoJSON-LogoGeoRSS-Logo
office

loading map - please wait...

office 9.078535, 7.460747

DROP US A LINE!

Why not get in touch with us. You can use our social media links or vist us at our office.