Yearly Archives: 2013

Boeing to build a new training center in Russia, will buy back $10 billion of its stock

Boeing (Chicago) has announced it will expand its flight and maintenance training capabilities in Russia with a new, state-of-the-art training campus.

The new full-service training facility— set to open in 2015—will be located in the Skolkovo Innovation Center in Moscow. Boeing will work in cooperation with Industrial Investors Group and their subsidiary Transas on the project.

Initial capability will include flight, maintenance and specialty training. Local maintenance training will be available across the spectrum of Boeing aircraft currently in operation, and flight training capability will include locally based instructors.

The new facility will open with four simulator bays, featuring three Next-Generation 737 full-flight simulators and one 777 full-flight simulator. Two of the simulators will be built by Transas. The facility is designed to allow for expansion to accommodate additional training capacity as required by customers.

Groundbreaking on the new training and research campus is scheduled for spring 2014, with training beginning in mid-2015.

The Boeing 2013 Pilot & Technician Outlook estimates that the Commonwealth of Independent States, including Russia, will require 15,200 new commercial airline pilots and 18,000 new technicians over the next two decades, supporting 1,530 new commercial airplanes by 2032. The new training campus in Russia is a significant investment in the region’s aviation safety, and will reduce travel times for airline crews and the costs of sending students for training.

Boeing Flight Services continually examines the global outlook for aviation training, and works to ensure training is available where it’s needed—near customers. In November, ground was broken on a new training facility in Korea. In August, Miami became the hub for pro forma flight training in the Americas— including 787 training —after the placement of additional flight simulators from Seattle. Three new simulators were also announced for the global training network in 2013: a third 787 full-flight simulator in London, and additional 777 and Next-Generation 737 simulators in Singapore.

In other news, Boeing Chairman, President and Chief Executive Jim McNerney announced Boeing’s board of directors authorized an additional $10 billion for the company’s share repurchase plan and declared that the company’s regular quarterly dividend will increase by approximately 50 percent to 73 cents per share.

The $10 billion repurchase authorization approved today is in addition to the approximately $0.8 billion remaining from the 2007 stock repurchase authorization. Repurchase activity for 2013 is complete and is expected to resume in January 2014.

The timing and volume of repurchases are at the discretion of Boeing management, however it is currently expected that the share repurchases will be made over the next two to three years. Repurchases may be made on the open market or in privately negotiated transactions.

The dividend declared today is payable March 7, 2014, to shareholders of record as of February 14, 2014.

AerCap to buy ILFC from AIG

AerCap Holdings N.V. (The Netherlands) has announced that it has entered into a definitive agreement with American International Group, Inc. (AIG) under which AerCap will acquire 100% of the common stock of International Lease Finance Corporation (ILFC), a wholly-owned subsidiary of AIG. Under the terms of the agreement, AIG will receive $3.0 billion in cash and 97,560,976 AerCap shares.

The transaction is expected to close in the second quarter of 2014. The cash portion of the consideration is expected to be funded through a combination of new debt financing and cash of the combined company.

The combined company will retain the name AerCap, and ILFC will become a wholly-owned subsidiary of AerCap. In connection with the transaction, AIG will be entitled to nominate two directors for election to the Board of Directors of AerCap.

Based on the closing stock price of AerCap’s shares on Friday, December 13, 2013, the total consideration has a value of approximately $26 billion including the assumption of the outstanding ILFC net debt of $21 billion. Upon closing of the transaction, AIG will own approximately 46% of the combined company, while the existing AerCap shareholders will own approximately 54% of the combined company. The AIG shares will be subject to a lock-up period which will expire in stages over a 9 to 15 month period, post closing of the transaction. In connection with the acquisition, AIG has entered into agreements with AerCap regarding voting restrictions, standstill provisions and certain registration rights.

As part of the transaction, AIG will provide AerCap with a committed five-year $1.0 billion unsecured revolving credit facility. In connection with the transaction, AerCap and AIG will make an election under Section 338(h)(10) of the Internal Revenue Code that will enable AerCap to step up the tax basis of ILFC’s aircraft and other assets to their fair market value.

AerCap’s CEO Aengus Kelly commented: “AerCap’s acquisition of ILFC will create the leading global franchise in the aircraft leasing industry. This transaction presents a unique strategic opportunity to bring together the outstanding and experienced personnel from both companies and two attractive portfolios of modern aircraft on lease to a highly diversified customer base. Further, we believe AerCap will now have the most attractive order book in the industry. With these combined resources, along with a strong liquidity profile, we will drive high levels of stable long term profitability and cash flows for the benefit of all our stakeholders.”

The acquisition will provide the opportunity to leverage the operating capabilities of both the AerCap and ILFC platforms to drive enhanced shareholder value. The combined portfolio will be concentrated from the outset in modern, fuel efficient aircraft, with over 85% of the fleet by value consisting of A320, A330, Boeing 737NG and Boeing 777 family aircraft. Further, AerCap will benefit from over $25 billion of future aircraft deliveries presently in the combined order book. This represents substantial embedded future growth with attractive aircraft types, and favorable pricing and delivery dates.

Robert H. Benmosche, President and CEO of AIG, said: “ILFC is a valuable business, and AIG has always taken great pride in ILFC’s reputation for innovation, its pioneering role in aircraft leasing, its industry-leading team of employees, and its consistent and successful market leadership. The combination of AerCap’s young fleet of in-demand aircraft and proven portfolio management capabilities with ILFC’s attractive order book and broad marketing reach will continue to lead the industry.”

Henri Courpron, Chief Executive Officer of ILFC, added: “I am very proud of the hard work and leadership demonstrated by the ILFC team over the past four years. It is because of them that we have the best-in-class order book and solid balance sheet, and our company is now poised for this promising combination with AerCap. Becoming the number one lessor in the world is a just reward for all of this work.”

The transaction is subject to approval by AerCap shareholders, receipt of necessary regulatory approvals and satisfaction of other customary closing conditions. Waha Capital, AerCap’s largest shareholder with a current stake of 26%, has agreed to vote in favor of the transaction.

AerCap is one of the world’s leading aircraft leasing companies. AerCap has a portfolio of 373 aircraft owned, managed and under purchase commitments, which represents one of the youngest fleets in the industry. The company is listed on the New York Stock Exchange (AER) and has its headquarters in the Netherlands with offices in Ireland, the United States, China, Singapore and the United Arab Emirates.

AerCap Current Fleet:

International Lease Finance Corporation (ILFC) is a global market leader in the leasing and remarketing of commercial aircraft. With nearly 1,000 owned and managed aircraft and commitments to purchase approximately 330 new high-demand, fuel-efficient aircraft, ILFC is the world’s largest independent aircraft lessor. ILFC has approximately 200 customers in more than 80 countries and provides part-out and engine leasing services through its subsidiary, AeroTurbine. ILFC operates from offices in Los Angeles, Amsterdam, Beijing, Dublin, Miami, Seattle, and Singapore.

Atlas Air to operate a Boeing 747-800F for BST Logistics in Hong Kong

Atlas Air Worldwide Holdings, Inc. (New York) has announced that its Atlas Air, Inc. (New York-JFK) unit has entered into a contract with BST Logistics (Hong Kong) Company Limited (BST Logistics), a business partner of Navitrans International Freight Forwarding Co., Ltd., to provide Boeing 747-8 freighter service.

The contract is for one aircraft under an ACMI (Aircraft, Crew, Maintenance and Insurance) agreement, with service expected to begin in February 2014 and operating in key global routes connecting the U.S., Europe and Asia.

BST Logistics provides dedicated airfreight services on a global basis and serves some of the largest shippers in the world.

Copyright Photo: Nick Dean/AirlinersGallery.com. Atlas Air’s Boeing 747-87UF N854GT (msn 37566) departs from Paine Field near Everett.

Atlas Air:

American’s new CEO Doug Parker puts the AA livery to an employee vote, there will be a TWA retrojet

American Airlines‘ (Dallas/Fort Worth) new 2013 livery was approved by out-going CEO Tom Horton as we have previously reported. Incoming CEO (and US Airways boss) Doug Parker is now putting the question of keeping this design or adopting a more traditional AA tail to an employee vote (all American and US Airways employees). One question is certain, either way, the fuselage will be painted because of the Airbus fleet and the newer Boeing aircraft like the 787.

Nearly 620 US Airways and US Airways Express aircraft now need to be repainted, let alone the remaining AA aircraft.There are now over 200 AA aircraft already repainted in the 2013 Horton design which features the large American flag on the tail. The new flight symbol logo (above) is everywhere now. However many employees miss the traditional AA on the tail (see below).

Doug has sent this message below to his expanded group of employees and is asking them to vote on two choices: silver paint with the new American flag on the tail or silver paint with the traditional AA on tail. Which do you like best? Please see our unofficial poll below for the readers of WAN (yes, AA-US employees can vote too in our poll).

Doug has also announced there will a TWA legacy retrojet (which color scheme?) to honor the proud employees of that once great airline. All of the heritage US Airways aircraft (including Allegheny, America West, Piedmont and PSA) will be retained in the new American along with one US Airways 2005 liveried aircraft and an American 1968 liveried aircraft. We have also included a TWA legacy poll below with all of the TWA color schemes and the years introduced. Which TWA design would you like to see?

Here is Doug’s full message to the employees:

American Livery Poll: Unless you are an AA-US employee, your opinion will not be heard. However you can give your opinion here. Vote for your favorite design.

TWA RetroJet Livery Poll:

American Airlines:

TWA:

US Airways:

TWA main liveries over the years (there were other minor variations but this is the main ones with the most recent at the top going back in time):

TWA 1995 (the last color scheme for TWA and the most stylistic):

TWA 1979 (included the tapered two traditional red stripes and the solid red TRANS WORLD fuselage titles:

TWA 1974 (basically the same as the later 1980 updated look, except with the harder-to-read red outline fuselage titles):

TWA 1962 (the classic early jet age “red arrow” and “twin globes” scheme, aircraft were called “StarStream …) (prior to this, early jet aircraft had a simple red TWA on the tail):

TWA 1952 (basically the 1945 with a white top, white was added to keep the aircraft cooler in flight, here is the the classic red and white “twin stripes” color scheme of the prop era):

TWA 1945: (after World War II aircraft wore this simple bare metal design with twin red stripes and red TWA titles):

TWA 1938 (“The Lindbergh Line” was pretty basic – only two tail stripes and red titles with a simple logo on a bare metal fuselage):

Newcomer SkyGreece Airlines proposes to fly to North America next summer from Athens

SkyGreece Airlines (Athens) is a new Greek airline with its first Boeing 767-300. Boeing 767-31A ER SX-BPN (msn 26470) (above) was delivered to the new airline on December 14. The newcomer is planning to launch trans-Atlantic flights to New York, Montreal (Trudeau) and Toronto (Pearson). The airline was founded in October 2012 by Greek and Canadian aviation professionals.

Qatar Airways expands its code-share agreement with US Airways, will launch a new route from Philadelphia to Doha on April 2

Qatar Airways (Doha) today announced the expansion of a code-share agreement with US Airways (Phoenix) for flights via Philadelphia International Airport (PHL). The agreement will provide millions of Americans the opportunity to fly internationally with Qatar Airways out of PHL using the seamless connection service on select code-share flights operated by US Airways.

Qatar Airways will launch daily nonstop service from Philadelphia to Doha, Qatar on April 2, 2014.

The partnership will further expand the opportunities of U.S. travelers flying internationally who want to use Qatar Airways’ growing list of destinations. Connections to PHL through US Airways are available from the following cities:

Los Angeles, CA (LAX)
San Francisco, CA (SFO)
Chicago, IL (ORD)
Boston, MA (BOS)
Miami, FL (MIA)
Tampa, FL (TPA)
Fort Lauderdale, FL (FLL)
Palm Beach, FL (PBI)
Fort Myers, FL (RSW)
Las Vegas, NV (LAS)
Phoenix, AZ (PHX)
Charlotte, NC (CLT)
Raleigh-Durham, NC (RDU)

Qatar Airways and US Airways’ code-share and frequent flyer partnership, which launched in 2009, focused on flights between Doha and the United States and Europe, as well as connecting flights from select European gateways to Doha. The code-share agreement will provide customers the convenience of a single combined ticket for Qatar Airways and US Airways operated connections, and will include the benefits of one-stop check-in and automatic baggage transfer. In addition, the airlines’ frequent flyer program members may earn miles or points while traveling on all flights of the other carrier and may redeem award tickets as well.

Qatar Airways joined the oneworld® alliance on October 30, 2013 and US Airways will become a member on March 31, 2014.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-2DZ LR (Longer Range) A7-BBA (msn 36012) arrives in London (Heathrow).

Qatar Airways:

ILFC to lease an Airbus A320 to Aircalin

International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc., announced it has signed an agreement with Air Calédonie International (Aircalin) (Nouméa), New Caledonia’s international airline, for the lease of a used Airbus A320-200. The aircraft will support the airline’s efforts to meet growing demand for air travel in the region.

The aircraft is scheduled for delivery in the middle of 2014 and will mark the addition of the second Airbus A320 to the airline’s fleet. The aircraft will be equipped with IAE V2500 engines and configured to have 8 business and 150 economy class seats. It will operate on Aircalin’s regional network, which connects its Nouméa base in New Caledonia with Japan, Australia, New Zealand and major South Pacific Islands.

Copyright Photo: John Adlard/AirlinersGallery.com. The current Airbus A320, the pictured A320-232 F-OJSB (msn 2152) is pictured at Sydney.

Aircalin:

Route Map:

Video:

Etihad Airways is coming to Dallas/Fort Worth and Perth

Etihad Airways (Abu Dhabi) will add a new long-range route to Dallas/Fort Worth on December 3, 2014 becoming the fifth destination in the United States. Etihad has a code-share agreement with American Airlines (Dallas/Fort Worth). The new route will operate three days a week with three-cabin ultra-long range Boeing 777-200 LR aircraft (Etihad is acquiring five 777-200 LRs from Air India). The aircraft will be configured to carry 237 guests, with 8 Diamond First Class suites, 40 Pearl Business Class flatbed seats, and 189 Coral Economy Class seats.

Flight EY 161 will depart every Wednesday, Friday, and Sunday from Abu Dhabi at 9.45 am (0945) and arrive in Dallas/Fort Worth at 4.30 pm (1630) the same day. The return flight, EY 160, will depart Dallas/Fort Worth at 6.45 pm (1845) on the same day and arrive in Abu Dhabi at 7.50 pm (1950) the following day.

DFW joins the other US cities of Chicago (O’Hare), New York (JFK), Washington (Dulles) and Los Angeles (to launch on June 1, 2014).

Etihad is also launching its fourth route to Australia on July 15, 2014 with daily flights to Perth, Western Australia. The new route will operate with Airbus A330-200 aircraft with 262 seats – 22 seats in Pearl Business Class and 240 in Coral Economy Class.

Etihad Airways:

Windavia starts charter operations

Windavia (SmartLynx) A320-200 YL-LCL (13)(Grd) LIS (PDB)(LRW)

Windavia (Lisbon) on December 11 flew its inaugural charter flight, the shortest commercial flight in the history of continental Portugal, from Beja to Lisbon and back with the pictured Airbus A320 wet leased from SmartLynx. Windavia has four Airbus A320 aircraft in its fleet and is finalizing contracts for two more aircraft.

Video:

The choice of Beja for the inaugural flight of the new charter airline was planned as the owners want to increase tourism to the Alentejo region. The carrier wants to serve Beja with flights from Paris and other French cities. The airline also plans to operate charter flights to Lisbon, Madeira, the Canary Islands, the Greek islands and northern Africa. The company is owned by Pedro Bollinger (49 percent) and unnamed Portuguese investor (51 percent).

Top Copyright Photo: Pedro Baptista/Flyingphotos (all others by Windavia). Airbus A320-214 YL-LCL (msn 533) makes its brief appearance at overcast Lisbon on its inaugural flight.

Air India gets another chance to join the Star Alliance

Air India (Mumbai) is getting another chance to join the Star Alliance. At their board meeting held in Vienna on December 13, the Chief Executives of the Star Alliance member airlines decided unanimously to recommence the integration process with Air India.

The Indian national carrier was originally accepted as a future member of Star Alliance in December 2007, but the integration process was halted in July 2011. The suspension was a joint decision which allowed Air India to focus on completing its merger with Indian Airlines, without the distraction of the work required for full integration into the Star Alliance network.

Copyright Photo: Yannick Delamarre/AirlinersGallery.com. The Boeing 777-300 ERs are now the mainstay of the international fleet. Boeing 777-337 ER VT-ALK (msn 36309) departs from Paris (CDG).

Air India: