15 May 2017

USA Aviation Industry Newsletter 15 May

ACG posts $830 million 1Q net profit after tax-status change US aircraft lessor Aviation Capital Group (ACG) posted an $830 million net profit for first-quarter 2017. The result includes AGC’s receipt of an $891 million tax benefit related to the elimination of the company’s net deferred tax liability―a result of the company’s March 31 change in tax status from a corporation to a limited liability company (LLC). AGC’s portfolio comprised 267 owned and managed aircraft, including 123 Airbus A320-family aircraft; three Airbus A330s; 128 Boeing 737-family aircraft; 10 refurbished Boeing 757s and three Boeing 767s. Delta defers 10 of 25 A350s on order; will still take first this year Delta Air Lines has reached an agreement with Airbus to push back deliveries of 10 of the 25 A350-900s the Atlanta-based carrier has on order. Delta still plans to take delivery of its first five A350-900s this year. Delta’s first A350 will enter service in the 2017 fourth quarter, and will be the first aircraft in its fleet to feature the airline’s new all-suite business-class product. Delta EVP and COO Gil West said the new A321 order and the A350 deferral “agreements better align our widebody and narrowbody order books with our fleet replacement needs.” Delta orders 30 Airbus A321ceos Delta Air Lines has placed an incremental order for 30 firm Airbus A321ceo aircraft. This order follows three previous Delta orders for the type. Delta SVP and COO Gil West said the A321’s “comfort, performance and economics make it a very compelling aircraft for Delta in our domestic route network.” United doubles its ABQ service to popular destination United Airlines announced this week it's increasing its daily service from Albuquerque to San Francisco later this year. Starting Aug. 15, United will offer two daily nonstop flights from Albuquerque International Sunport to the San Francisco International Airport will be operated by an EMB-175 aircraft. U.S. Airline Customer Service Places Spotlight on ATC Reform The debate over the fate of the U.S. air traffic control system continues in Washington. Reform advocates and opponents both used the recent round of congressional hearings on airline customer service to restate their case regarding proposals to create an independent air traffic control system. Airline chiefs reiterated a need for change, and House Transportation and Infrastructure Committee chairman Bill Shuster (R-Pa.), who is the primary driver of the proposal, said reform would create efficiencies in the ATC system. Acumen Aviation © 15 May All Rights Reserved.