07 Jan 2019

USA Aviation Industry Newsletter 7 January

AAR Names Sean Gillen Chief Financial Officer AAR announced 3 January that its Board of Directors has appointed Sean Gillen as Vice President and Chief Financial Officer, effective January 7, 2019. Mr. Gillen will succeed Michael Milligan and will report to President and Chief Executive Officer John Holmes. He will have responsibility over the financial, accounting, tax, treasury and investor relations functions at AAR. ATSG Expands and Extends its Aircraft Leasing and Operating Agreements with Amazon Air Transport Services Group, Inc announced 21 December agreements to lease and operate ten additional Boeing 767s for Amazon.com Services, Inc., to extend leases for twenty 767 aircraft ATSG currently provides to Amazon, and to extend the operating agreement through which ATSG’s airlines operate those aircraft in the Amazon Air network. Boeing Delivers First 737 MAX Airplane to Royal Air Maroc Boeing 21 December delivered the first 737 MAX for Royal Air Maroc, which plans to use the fuel-efficient, longer-range version of the popular 737 jet to expand and modernize its fleet. The Morocco's flag carrier - which welcomed its first 787-9 Dreamliner last week - will take delivery of three more 737 MAX 8s and three more 787-9s over the next few months as part of its strategic plan to strengthen its operations. Boeing, flyadeal Sign Commitment for Up to 50 737 MAX Jets Boeing and flyadeal announced 21 December the Middle East carrier is growing its fleet with the 737 MAX to take advantage of the airplane's fuel efficiency, range and passenger comforts. The airline committed to ordering 30 airplanes with options for 20 more in a deal that would be valued at up to $5.9 billion at list price. The deal is subject to both sides concluding final terms and conditions and a purchase agreement. It will appear on Boeing's Orders & Deliveries website once all contingencies are cleared. Boeing, Green Africa Airways Announce Landmark Commitment for up to 100 737 MAX aircraft Boeing and Green Africa Airways 20 December announced a commitment for up to 100 737 MAX 8 aircraft, evenly split into 50 firm aircraft and 50 options, as the airline gears up to begin commercial operations. The total deal carries a list-price of $11.7 billion, the largest aircraft agreement from Africa, and will be reflected on Boeing's Orders and Deliveries website once finalized. Frontier Airlines takes delivery of 11th A320neo from GECAS GECAS delivered it’s eleventh A320 neo to Frontier via Sale-Leaseback (with commitments for an additional five in 2019). The initial delivery in October 2017 marked Frontier’s first neo and subsequent deliveries make Frontier the first operator of a Leap-powered A320neo to be delivered out of Mobile, AL. GECAS previously financed nine A321ceos with Frontier. The additional sixteen A320neo’s signify GECAS’ commitment and long-term relationship with the airline. JetBlue Airways firms up order for 60 Airbus A220-300 aircraft JetBlue Airways has firmed up an order for 60 A220-300 aircraft, the larger model of the new, industry-leading A220 series. Robin Hayes, Chief Executive Officer, JetBlue said “As we approach our 20th anniversary, the impressive range and economics of the highly efficient A220, combined with the outstanding performance of our existing fleet of Airbus A321 and restyled A320 aircraft, will help ensure we deliver the best onboard experience to customers and meet our long-term financial targets as we continue disciplined growth into the future.” KKR Commits to Invest $1 Billion with Altavair KKR and Altavair AirFinance announced 3 January that the two firms have entered into an agreement to form a long-term partnership to pursue the creation of a leading, global portfolio of leased commercial aircraft. KKR will make a $1 billion capital commitment primarily from its credit and infrastructure funds, which may be supplemented with additional commitments over time, to acquire commercial aircraft in partnership with Altavair over the next several years and Altavair will be KKR’s partner for aircraft leasing investments going forward. KKR will also acquire a 50% interest in Altavair as part of the long-term partnership. KKR’s initial investment will go towards the acquisition of six cargo aircraft on long-term lease with a diverse group of airline counterparties. Spirit AeroSystems to Deliver First 3D-Printed Commercial Aircraft Part Spirit AeroSystems announced 21 December the receipt of its first additive-manufactured, titanium, structural component for the Boeing 787. The part, a back-up fitting for an access door latch, has been machined and finished at Spirit's Wichita site, and installed in a 787 forward fuselage. The forward fuselage will ship to Boeing's final assembly facility in January. Universal Asset Management Acquires Airbus A319-100 Universal Asset Management, Inc. (UAM) is pleased to announce that it has acquired a Airbus A319-100 MSN (2452) formerly operated by Shaheen Air International. U.S. start-up airline “Moxy” confirms order for 60 Airbus A220-300s The start-up U.S. airline code-named “Moxy” has signed a firm order with Airbus to purchase 60 A220-300 aircraft. Airbus will produce the A220-300 at a new U.S. assembly facility in Mobile, Alabama. Construction of that plant, to be located adjacent to the existing Airbus A320 assembly facility, will begin later this month. David Neeleman said “The A220-300 is the right airplane for a new airline that will be focused on passenger service and satisfaction. With a low cost of operation and spacious cabin, the A220 will allow us to provide passengers with lower fares and a high quality, comfortable flying experience. The A220’s ability to operate profitably in thin, underserved markets across a broad spectrum of ranges is unique”. Acumen Aviation © 7 January 2019 All Rights Reserved.