05 Jun 2018

USA Aviation Industry Newsletter 5 June

ATSG Delivers Leased 767 Freighter to Amerijet Air Transport Services Group announced 31 May the delivery by its Cargo Aircraft Management subsidiary of a Boeing 767-300 converted freighter to Amerijet International Airlines under an eight-year dry lease. Boeing, Safran Agree to Design, Build and Service Auxiliary Power Units Boeing and Safran have agreed to jointly design, build and service Auxiliary Power Units (APUs), creating better value for customers and for both companies. An APU is an onboard engine that is used to primarily start the main engines and power aircraft systems on the ground and, if necessary, in flight. Each company will have a 50 percent stake in the partnership, which will be based in the United States. The completion of the transaction is subject to customary conditions including regulatory and antitrust clearance. The deal is expected to close in the second-half of 2018. Delta and Korean Air enhance codeshare flights in the U.S Delta Air Lines and Korean Air are expanding codeshare flights, following the launch of a joint venture partnership May 1 that gives customers world-class travel benefits across one of the most comprehensive route networks in the trans-Pacific market. The enhanced codeshare flights in the Americas will further strengthen the existing 36 codeshare routes within Asia. Hawaiian Airlines Celebrates New Long Beach Service Hawaiian Airlines commenced 1 June its inaugural flight between Long Beach Airport (LGB) and Honolulu's Daniel K. Inouye Airport (HNL) with hula performances and lei as the carrier celebrated the start of daily non-stop service with new Airbus A321neo aircraft. Long Beach becomes Hawaiian's 12th U.S. gateway city. Spirit CEO Comments on 737 Recovery, Accelerated Share Repurchase Plan and Financing Activity at Conference in NYC Spirit AeroSystems President and Chief Executive Officer Tom Gentile announced at the Bernstein 34th Annual Strategic Decisions Conference that the 737 recovery is tracking to plan. "We are seeing positive impacts from our recovery efforts and expect to be fully recovered to schedule by mid-year," said Gentile. In addition, the completion of $1.3 billion of bond financing on May 30, 2018, was discussed. The new bonds were part of a broader plan to take advantage of the current interest rate environment to lower the company's average cost of borrowing and extend debt maturities. The use of proceeds from the bond issuance, combined with borrowings under the company's revolving credit facility and term loan, will be used to fund the acquisition of Asco Industries, repurchase the company's bonds due in 2022, pay down a portion of the company's term loan, execute an accelerated share repurchase program (ASR), and for financing and acquisition-related costs. Acumen Aviation © 5 June All Rights Reserved.