13 May 2019

North America Newsletter 13 May

Air Canada Receives Final Court Approval to Increase Permitted Foreign Ownership Levels to the Levels Permitted under Canada Transportation Act Air Canada announced 8^th May that the Quebec Superior Court issued earlier today a final order approving the previously announced plan of arrangement under the Canada Business Corporations Act effecting amendments to Air Canada's articles of incorporation to align the permitted level of non-Canadian ownership and control of its voting shares within its articles with those prescribed by the new definition of "Canadian" under the Canada Transportation Act (CTA) as amended in June 2018. The Government of Canada's stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers. Air Lease Corporation Increases Unsecured Revolving Credit Facility to $5.8 Billion Air Lease Corporation amended and extended its unsecured revolving credit facility with JPMorgan Chase Bank, N.A., as administrative agent and the lenders named therein whereby the Company extended the maturity date of the substantial majority of the revolving commitments from May 5, 2022 to May 5, 2023 and, after giving effect to commitments that matured on May 5, 2019, increased total revolving commitments to approximately $5.8 billion from $4.6 billion, across 50 financial institutions. Air Niugini Selects StandardAero for PW123 Pay-Per-Hour Support, Extending Partnership Between the Two Companies Air Niugini has re-selected StandardAero to provide Pratt & Whitney Canada PW123 engine maintenance, repair and overhaul (MRO) services in support of the Dash 8 regional turboprops operated by its subsidiary Link PNG. This new pay-per-hour engine maintenance agreement succeeds a previous contract between the two companies, extending StandardAero’s partnership with Air Niugini and Link PNG. Air Transat introduces non-stop flights between Montreal and New Orleans (Louisiana) Air Transat announced 9^th May that it will add New Orleans, Louisiana, to its portfolio of fall and winter destinations. Beginning in November 2019, the airline will offer two direct flights a week from Montreal. Azul receives the first Airbus A330neo in the Americas The first A330neo of the Americas has been delivered to Azul Linhas Aéreas on lease from Avolon, becoming the first airline from the Americas to fly the A330-900. The aircraft is the first of 15 A330neo ordered by Avolon. CIT and NORD/LB Arrange $91 Million Financing for Mesa Airlines CIT Group Inc announced 8^th May that it served together with NORD/LB as co-lead arrangers and joint documentation agents on a $91 million term loan financing on behalf of Mesa Airlines. The financing, arranged by CIT's Aerospace, Defense & Government Finance business and NORD/LB, was used to underwrite the purchase of aircraft engines for Mesa's fleet of aircraft. Delta Air Lines first A330neo makes inaugural flight The first A330-900 wide-body destined for Delta Air Lines made its inaugural test flight Tuesday 7^th May from Toulouse airport. The aircraft is one of 35 Delta has on order, is due to be delivered in the coming weeks. Mitsubishi Aircraft Corporation Announces Opening of New U.S. Headquarters Mitsubishi Aircraft Corporation announced 12^th May the opening of a new U.S. headquarters in Renton, Washington. The office employs members of a global team, primarily focused on finalizing the development of the company’s regional jet program, including engineering, sales, marketing and customer support. It will also play a key role in future product development. Viva Air announces equity investment by Cartesian Capital Group Viva Air Group announced 9^th May an important milestone in its further growth and expansion plans through an equity investment of $50 million from Cartesian Capital Group into Viva Air. This innovative financing arrangement will support Viva’s pending deliveries of Airbus A320 aircraft and the Group’s continued growth in Colombia, Peru and beyond. Cartesian Capital Group, a global private equity firm, has sponsored the development of dozens of transnational companies, including airlines such as Gol in Brazil and Flybondi in Argentina. Irelandia Aviation, the world’s premier low-cost airline developer, will remain majority shareholder after the investment. Acumen Aviation © 13 May 2019 All Rights Reserved.