05 May 2020
North America Newsletter 5 May
Air Canada Announces Renewal of Shareholder Rights Plan
Air Canada announced that its Board of Directors has approved a shareholder rights plan to renew Air Canada's existing rights plan. The renewed rights plan is substantially unchanged from Air Canada's current rights plan. It is not being adopted in response to any specific proposal to acquire control of Air Canada, nor is the Board of Directors aware of any pending or threatened take-over bid for Air Canada. The renewed rights plan is similar to plans recently adopted by other Canadian companies and approved by their shareholders.
American Airlines: A fond farewell to five fantastic fleets
American Airlines announced plans to accelerate the retirement of some older, less fuel-efficient aircraft from its fleet sooner than originally planned. American will take the unique step of retiring a total of five aircraft types. American has officially retired the Embraer E190 and Boeing 767 fleets, which were originally scheduled to retire by the end of 2020. The airline has also accelerated the retirement of its Boeing 757s and Airbus A330-300s. Additionally, American is retiring 19 Bombardier CRJ200 aircraft operated by PSA Airlines.
Boeing Statement on Bond Offering
Boeing is pleased with its bond offering which is one of several steps we’re taking to keep liquidity flowing through our business and the 17,000 companies in our industry’s supply chain. The robust demand for the offering reflects strong support for the long-term strength of Boeing and the aviation industry. It is also in part a result of the confidence in the market created by the CARES Act and federal support programs that have been put in place - a testament to the Administration, Congress and the Federal Reserve. The bond offering includes debt instruments with an aggregate principal amount of $25 billion across seven tranches with maturities ranging from three to 40 years.
De Havilland Canada Announces a Phased Return to Work and a Measured Resumption of Activities
De Havilland Canada announced that the company has started a phased return to work of employees and a measured resumption of activities. In the first phase, approximately 100 employees have returned to work and De Havilland Canada is focused on resuming pre-flight activities and delivery of Dash 8-400 aircraft. Todd Young, Chief Operating Officer, De Havilland Canada said “In harmony with ongoing efforts to curtail the effects of COVID-19, De Havilland Canada is glad to start welcoming our employees back to work to resume aircraft pre-flight activities and prepare for upcoming deliveries to our customers."
Delta to retire MD-88, MD-90 fleets in June
Delta will retire the MD-88 and MD-90 aircraft earlier than previously planned, with both aircraft types exiting the fleet effective June 2020. The accelerated retirement schedule of both aircraft is a result of the COVID-19 pandemic. The 149-seat MD-88 was previously set to retire by the end of 2020.
Second Boeing 777X Completes First Flight
Boeing conducted a productive and successful first flight of the second 777X aircraft on 30th April. Capt. Ted Grady, 777X project pilot, and Capt. Van Chaney, 777/777X chief pilot, flew for 2 hours and 58 minutes over Washington state before landing at Seattle's Boeing Field at 2:02 p.m. Pacific. Designated WH002, this airplane is the second of four in a dedicated flight test fleet and will test handling characteristics and other aspects of airplane performance. An array of equipment, sensors and monitoring devices throughout the cabin allows the onboard team to document and evaluate the airplane's response to test conditions in real time.
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