AerCap completes the acquisition of GECAS from General Electric

AerCap Holdings N.V., the global leader in aircraft leasing, has announced that it has completed its acquisition of the GE Capital Aviation Services business (GECAS) from General Electric.

The acquisition positions AerCap as the worldwide industry leader across all areas of aviation leasing: aircraft, engines and helicopters. The combined company will serve approximately 300 customers around the world and will be the largest customer of Airbus and Boeing.

AerCap now has a portfolio of over 2,000 aircraft, over 900 engines and over 300 helicopters, as well as an order book of approximately 450 of the most fuel-efficient and technologically advanced aircraft in the world. The aircraft fleet represents approximately 90% of the assets of the combined company. New technology aircraft are expected to make up 75% of the aircraft fleet by 2024.

Transaction Highlights

Under the terms of the transaction agreement, General Electric received 111.5 million newly issued AerCap shares, approximately $23 billion of cash and $1 billion of AerCap notes. General Electric now owns approximately 46% of AerCap’s outstanding shares.

In connection with the transaction, Jennifer VanBelle has joined the Board of Directors of AerCap, bringing the number of members serving on AerCap’s Board of Directors to 10.

A.P. Moller – Maersk orders two Boeing 777 freighters, to be operated by Star Air

Boeing and A.P. Moller – Maersk (Maersk) has announced the global provider of end-to-end container logistics has placed an order for two 777 freighters.

The freighters will be operated by Star Air, Maersk’s in-house aircraft operator and is the company’s first 777 order. Star Air currently operates an all-Boeing 767 Freighter fleet.

The Boeing 777F will be a new type for Star Air. Star Air currently operates a fleet of 11 Boeing 767-200SFs, 1 Boeing 767-300 BCF,1 Boeing 767-300 BCF and 2 Boeing 767-300Fs.

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Air Transat announces an offtake agreement for 90% of the sustainable e-fuel produced by SAF+ in its first plant over the first 15 years of operation

Air Transat A.T. Inc. and SAF+ Consortium are proud to announce an offtake agreement for 90% of the sustainable e-fuel produced by SAF+ in its first plant over the first 15 years of operation. The agreement, which also includes support for the project’s development, confirms Air Transat’s desire to reduce its environmental footprint and continue its actions to combat climate change by becoming the first airline in Canada to reserve a significant volume of e-fuel over a long period of time.

SAF+ recently announced one of the first productions of sustainable aviation fuel in North America. SAF+’s goal is to bring to market by 2025–2026 a synthetic kerosene whose carbon footprint is 80% lower than fossil kerosene by capturing 120,000 tonnes of CO₂ per year. SAF+’s technology involves producing a synthetic liquid fuel by capturing and combining CO₂ from industrial sources with green hydrogen produced in Quebec. While there are several types of sustainable fuels, e-fuel is a particularly promising avenue because it does not compete with other uses for its raw material.

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Etihad Airways operates its most sustainable flight ever

On Saturday, October 23, 2021, Etihad Airways operated its most sustainable flight ever, leveraging the learnings and efficiencies developed over the last two years of its comprehensive sustainability program to reduce carbon emissions (CO₂) by 72% in absolute terms compared to the equivalent flight operated in 2019.

The London Heathrow to Abu Dhabi flight is part of the Etihad Greenliner Program – a two-year partnership between Etihad and Boeing using Etihad’s Boeing 787 fleet as a test bed for sustainability improvements in partnership with organizations across the industry. It required huge collaboration across the aviation ecosystem to deliver a sustainable in-flight product, coordination with airspace management for optimized flight routing, new technology flight deck tools, sustainable aviation fuel (SAF), contrail reduction and airport handling processes.

In an industry-first, EY20 was the first commercial flight to explore contrail-avoidance. Working with UK-based SATAVIA, the team identified potential areas of ice super-saturated regions in the atmosphere where harmful contrails are likely to form, and the flight route was adjusted to avoid these areas. Based on the original and adjusted flight plan, the strategy avoided the production of approximately 64 tonnes of CO2e, with a fuel penalty of only 100kg, or 0.48 tons CO2.

The contributions covered three phases, planning, in-flight and post-flight. This included preparing the aircraft, engines and route planning systems to optimize take-off, en-route and landing flight paths and trajectories, minimizing contrail formation, working with our guests to reduce their luggage and rewarding those that travelled light.

Etihad provided catering that was appropriately sourced and served on sustainable crockery and with light-weight cutlery. The crockery itself is part of a circular recycling process where they are returned to the manufacturer at the end of their serviceable life and ground down to its raw material and remade. Guests were also provided with environmentally friendly plant-based water bottles and limited-edition tote bags from upcycled aircraft materials. 80% of all single use plastics were eliminated.

Once the aircraft arrived at Abu Dhabi, it was serviced by Etihad’s new fleet of electric vehicles for ground logistics such as baggage unloading. Where electric vehicles were unable to be used, Etihad purchased bio-diesel to fuel equipment such as the airline’s passenger coach service between Abu Dhabi and Dubai, meaning all passengers, including those transiting to Dubai, were completely carbon neutral for the entirety of their journey.

The data gathered from the aircraft’s sensors was added to Etihad’s growing database on flight performance, and analyzed using tools from Greenliner partner, GE Digital to improve understanding of flight performance and allow quick recognition of unsustainable activities.

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Top Copyright Photo: Etihad Airways Boeing 787-10 Dreamliner A6-BMH (msn 60765) (Greenliner) FRA (Marcelo F. De Biasi). Image: 951389.

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Azores Airlines to launch New York-JFK – Madeira flights

SATA Azores Airlines will launch the first-ever nonstop flight from a U.S. gateway to Funchal, Madeira’s capital city. In conjunction with the new direct flight, operating from New York (JFK) to Funchal (FUN), Portugal-based tour operator Inovtravel has launched new travel packages to Madeira, which will include direct flights out of New York, accommodations, airport-hotel transfer and a travel expert.

Madeira, an island chain off the coast of Portugal, is undoubtedly a hidden gem of Europe, with impressive scenery across 300 square miles of mountains, valleys and beaches, along with five-star accommodations, Michelin-starred restaurants, and award-winning Madeiran wines. Not only that, but the archipelago boasts unique historical ties to the U.S., with its namesake Madeira wine being used to toast the Declaration of Independence in 1776 and Thomas Jefferson allegedly ordering close to the equivalent of 3,500 bottles of Madeira wine during his first few years of presidency.

Now, with the convenience of nonstop flight options, this Portuguese paradise is more accessible than ever to U.S. travelers.

The weekly direct flight will be available through March 2022.

Top Copyright Photo: Azores Airlines Airbus A321-253NX WL CS-TSH (msn 8796) (Magical) YYZ (TMK Photography). Image: 954150.

Azores Airlines aircraft slide show:

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Swoop resumes international flights from Winnipeg

Swoop on November 1 resumed international flight operations at Winnipeg Richardson International Airport with the departure of flight WO 728 bound for Phoenix-Mesa Gateway Airport. The ultra-low-cost carrier is set to bring even more sun service to Winnipeg with the return of non-stop flights to Puerto Vallarta on November 4, 2021 and launch of service to new destinations including Cancun on December 3, 2021 and Orlando (Sanford) on December 11, 2021.

Flight WO 728 marking the first international departure from Winnipeg to a sun destination since the onset of the pandemic.

Swoop Route Map:

Air Canada reports an operating loss of $364 million in the third quarter

Air Canada reported third quarter 2021 financial results.

Operating revenues of $2.103 billion, representing almost three times the operating revenues of $757 million in the third quarter of 2020
Negative EBITDA⁽¹⁾ (earnings before interest, taxes, depreciation, and amortization), excluding special items, of $67 million compared to negative EBITDA (excluding special items) of $554 million in the same quarter of 2020
Operating loss of $364 million, compared to an operating loss of $785 million in the third quarter of 2020
Net cash flow⁽¹⁾ of $153 million, approximately $520 million higher than the midpoint of the net cash burn guidance provided for the quarter
Record cargo revenues, surpassing the billion-dollar mark year-to-date
Unrestricted liquidity of about $14.4 billion at September 30, 2021

“We are encouraged by the favorable revenue and traffic trends in the third quarter, with strong increases in key passenger geographic segments, a record cargo performance and significant improvements in both Air Canada Vacations and Aeroplan. The combination of these factors, along with effective cost controls, resulted in net cash flow of $153 million for the quarter, materially better than expected and as compared to the third quarter of 2020,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“Another major accomplishment was the series of financing transactions completed in August, allowing us to lower our cost of borrowing, extend the maturities of our corporate debt, and raise gross proceeds of about $7.1 billion. As a result, at the end of the third quarter of 2021, Air Canada had about $9.5 billion in available liquidity on its balance sheet. This strong liquidity position and the confidence it conveys is a core element of our long-term prospects as we rebuild our airline. We also have about $4.9 billion available under undrawn facilities.

“Since the start of the year we have recalled more than 10,000 employees. We have expanded services to the U.S., and have launched new routes, such as to Cairo. We also announced expansions of our services to India and South America as well as the return next summer of popular seasonal destinations such as Barcelona, Venice, Nice and Reykjavik. To support our network restoration, we have reversed our decision to cancel two Airbus A220 aircraft orders and are now accelerating deliveries of new Boeing 737 MAX aircraft. For our customers, we are pleased to bring back amenities such as onboard meal service and Maple Leaf Lounges.

“I want to express my continuing gratitude to all our employees for their incredible efforts, resilience, and teamwork throughout the challenging past 20 months, most recently as we have worked hard to restart a very complex eco-system with our many partners. I am pleased these efforts were globally recognized when our employees recently won Best Airline Staff in Canada and Best Airline Staff in North America in the prestigious 2021 Skytrax World Airline Awards. Their unstoppable energy, purpose and steadfast optimism have lifted and inspired us all as we navigate towards brighter skies ahead,” said Mr. Rousseau.

Third Quarter Updates

Capacity and Route Network

Since the onset of the pandemic, Air Canada has actively managed its ASM capacity to account for passenger demand, prevailing market trends, public health guidelines and travel restrictions globally. In the third quarter of 2021, Air Canada increased its ASM capacity by 87 per cent compared to the third quarter of 2020 (a reduction of about 66 per cent when compared to the third quarter of 2019), generally in line with expectations discussed in Air Canada’s second quarter news release dated July 23, 2021.

Over the third quarter of 2021, and following the June 15, 2021 announcement of its peak domestic summer schedule serving a total of 50 Canadian destinations from coast to coast, Air Canada announced a series of network developments, including:

On July 6, 2021, Air Canada unveiled new details for its international flight schedule for the summer of 2021 which included the resumption of 17 routes and 11 destinations across the world from its hubs.
Following the Government of Canada’s announcement to reduce travel restrictions for citizens and permanent residents of the U.S., on July 19, 2021, Air Canada announced its U.S. transborder summer schedule, including 55 routes and 34 destinations in the U.S., with up to 220 daily flights between the U.S. and Canada.
On July 29, 2021, Air Canada announced two new winter services departing from Quebec City to Orlando and Fort Lauderdale. Air Canada also announced it would be resuming its international service to Punta Cana and Cancun, from Quebec City, later in the fall.
On September 7, 2021, Air Canada Rouge resumed service with flights operating between Toronto and Las Vegas, Orlando, and Regina, with other destinations introduced in September, including Cancun and Tampa.
On September 8, 2021, Air Canada resumed service between Montreal and Toronto Island Airport with five daily return flights.
On September 27, 2021, Air Canada resumed its non-stop flights to and from Delhi, following the lifting of the Government of Canada restrictions on non-stop flights from India.

In October 2021, Air Canada announced additional updates to its schedule. These announcements include:

Two new seasonal routes connecting Quebec City with Vancouver and with Calgary. These routes are scheduled to begin in May 2022.
Increase in service to several key South American destinations. Year-round service to São Paulo, Brazil from Montreal will resume on December 8, 2021. Direct service from Montreal to Bogota, Colombia is set to start on December 2, 2021, while flights from Toronto to Bogota will increase to four per week as of November 7, 2021. Service between Toronto and Santiago, Chile is scheduled to resume in January 2022. Air Canada will serve Buenos Aires, Argentina, with flights offered from both Toronto and Montreal via São Paulo.
New seasonal service between Toronto and Santo Domingo in the Dominican Republic is scheduled to begin on December 16, 2021.
Planned summer schedule for Europe, Africa, the Middle East and India. In addition to its established year-round services, Air Canada announced its return to key summer seasonal destinations such as Barcelona, Venice, Nice, Manchester, Edinburgh, and Reykjavik.
Expansion of services to India with increased frequency to Delhi from Toronto, since October 15, 2021, and a new year-round service to Delhi from Montreal that started on October 31, 2021.
New daily service between Toronto Island and Ottawa which started on October 31, 2021.

Financing and Liquidity

In the third quarter of 2021, Air Canada completed a series of financing transactions generating gross proceeds of about $7.1 billion. These financing transactions provide substantial liquidity to Air Canada and extend debt maturities out until near the end of the decade. Additional information relating to these transactions is available in Section 4 entitled “Overview” of Air Canada’s Third Quarter 2021 Management’s Discussion and Analysis of Results of Operations and Financial Condition.

Fleet

In the third quarter of 2021, Air Canada elected to proceed with the purchase of an additional two Airbus A220-300 aircraft for delivery in 2024. These two aircraft are part of the 12 Airbus A220-300 aircraft that Air Canada had previously determined it would not be purchasing under an amendment to the purchase agreement concluded with Airbus Canada Limited Partnership in November 2020. Subsequently, in October 2021, Air Canada reached an agreement with Boeing to accelerate the delivery of four Boeing 737 MAX aircraft into the fourth quarter of 2021, for a total of seven deliveries in 2021. The remaining nine Boeing 737 MAX aircraft are now expected to be delivered by the end of the second quarter of 2022, reaching a total of forty Boeing 737 MAX aircraft in the narrow-body fleet.

Third Quarter Financial Summary

Air Canada recorded a net loss of $640 million or $1.79 per diluted share in the third quarter of 2021 compared to a net loss of $685 million or $2.31 per diluted share in the third quarter of 2020. The net loss in the third quarter of 2021 included a foreign exchange loss of $136 million, as compared to a foreign exchange gain of $88 million recorded during the third quarter of 2020.

When compared to the third quarter of 2020, EBITDA improved $487 million to negative EBITDA, excluding special items, of $67 million in the third quarter of 2021. The last two months of the third quarter of 2021 each generated positive EBITDA.

In the third quarter of 2021, net cash generation of $153 million was better than management’s expectation of a net cash burn of between $280-to-$460 million, discussed in Air Canada’s July 23, 2021 news release. Over the third quarter, Air Canada saw the benefit of strong advance ticket sales and a significant increase in passengers carried versus both the second quarter of 2021 and the third quarter of 2020. This, along with its strong liquidity position, gives Air Canada added confidence that it is well-positioned to emerge from the pandemic, and to continue building back its network and investing in the future.

As at September 30, 2021, Air Canada’s unrestricted liquidity was approximately $14.4 billion consisting of roughly $9.5 billion in cash, cash equivalents, short- and long-term investments and about $4.9 billion available in undrawn funds from credit facilities.

Outlook

Air Canada plans to increase its fourth quarter 2021 ASM capacity by about 135 per cent from the same quarter in 2020. When compared to the same period in 2019, fourth quarter ASM capacity is expected to decrease by about 47 per cent.

In light of the transition towards a post-pandemic environment and consistent with industry practice, Air Canada will not be providing net cash burn guidance going forward.

Air Canada will continue to adjust capacity and take other measures as required, including so as to account for passenger demand, public health guidelines, and travel restrictions globally, as well as other factors, such as inflation and other cost pressures.

⁽¹⁾ Non-GAAP Measures

Below is a description of certain non-GAAP financial measures used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for, or superior to, GAAP results. Readers are advised to review the section entitled “Non-GAAP Financial Measures” in Air Canada’s Third Quarter 2021 MD&A for a further discussion of such non-GAAP measures and a reconciliation of such measures to Canadian GAAP.

EBITDA (earnings before interest, taxes, depreciation, and amortization) is commonly used in the airline industry and is used by Air Canada as a means to view operating results before interest, taxes, depreciation, and amortization. These costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. Air Canada excludes special items from EBITDA as these items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful. Refer to the “Non-GAAP Financial Measures” section in Air Canada’s Third Quarter 2021 MD&A for a discussion of special items relating to the third quarter of 2021.

Net cash burn is commonly used in the airline industry and is used by Air Canada as a measure of cash used to maintain operations, support capital expenditures, and settle normal debt repayments, all before the net impact of new financing proceeds. Net cash burn is defined as net cash flows from operating, financing for aircraft deliveries, and investing activities. Excluded are proceeds from non-aircraft financings, lump sum debt maturities made where Air Canada has refinanced or replaced the amount, and proceeds from sale and leaseback transactions. Net cash burn also excludes movements between cash and short- and long-term investments, and refunds for non-refundable fares being processed for flights impacted by the COVID-19 pandemic. Such refunds are eligible for draws under the Government of Canada $1.404 billion refunds credit facility and, therefore, are generally cash neutral to Air Canada’s liquidity position (up to the $1.404 billion limit of the facility) and improve net working capital.

SmartLynx adds two more Airbus A321Fs to its expanding cargo fleet

SmartLynx made this announcement:

As part of an ambitious expansion strategy, SmartLynx Airlines, a high-profile European ACMI charter and cargo operator has announced the addition of two more A321Fs to its growing cargo fleet.

The two new cargo freighters aircraft will bring the airline’s A321F fleet to a total of eight (8) active aircraft of the type by the end of 2022. SmartLynx, a family member of Avia Solutions Group – a leading global aerospace services group with almost 100 offices and production stations providing aviation services and solutions worldwide – additionally has plans to double its fleet number in the near future.

Both A321Fs – MSNs 1204 (9H-CGC) & 775 (9H-CGD) – are leased to SmartLynx by entities managed by Cross Ocean Partners and will be registered in Malta. The passenger to freighter conversions are being undertaken by Precision Conversions in the United States and aircraft are expected to enter service in Q1 2022.

The addition comes as an integral part of SmartLynx’s strategic expansion plans to become the largest operator of A321F cargo freighters in the near term. The A321F freighter has the highest revenue payload and the most versatile, customer-friendly features in today’s cargo marketplace. SmartLynx is already successfully operating its first A321F in support of DHL’s European network, with a second aircraft scheduled to commence operations for DHL eminently.

All photos by the airline.

Air France’s new Airbus A220-300 enters service

Air France made this announcement:

First commercial flights to Berlin and Venice, then Barcelona, Madrid and Milan to follow in the next few days;
The highest level of comfort in the Business and Economy cabins;
The Airbus A220-300, a major asset for improving Air France’s economic and environmental performance: cost per seat reduced by 10%, 20% less CO2 emissions and 34% less noise emissions.

On October 31, 2021, Air France’s Airbus A220-300 welcomed its very first customers, with two flights from Paris-Charles de Gaulle to Berlin (Germany) and Venice (Italy). These flights were operated by the Airbus A220-300 “Le Bourget”, which was delivered to the airline at the end of September and is the first of 60 aircraft ordered by Air France to progressively replace its Airbus A318s, A319s and some A320s by the end of 2025.

Over the next few days, the Airbus A220-300 will be rolled out on routes to Barcelona and Madrid (November 1), as well as Milan-Linate (November 6). During the 2021-2022 winter season, the aircraft will gradually expand its network to Bologna, Rome (Italy), Lisbon (Portugal) and Copenhagen (Denmark) as new aircraft are delivered.

The highest level of in-flight comfort

The Air France Airbus A220-300 has 148 seats, in a 3-2 seat configuration (5 seats across) offering 80% of customers a window or aisle seat. Up to eight rows at the front of the aircraft can be dedicated to Business class customers, who have an empty seat next to them and enjoy priority boarding and deplaning.

Its leather reclining seats – the widest on the market at 48 cm – are equipped with USB A and C sockets, a solid tray table, a cup holder and a tablet or smartphone holder integrated into the backrest.

The aircraft is equipped with the latest innovations, with large panoramic windows, mood lighting to accompany the different phases of the flight, and spacious baggage compartments for easier access. It is equipped with Air France Connect, the airline’s Wi-Fi offer, which is accessible throughout the flight and offers three passes, including one that is free of charge for sending and receiving messages during the flight.

The catering offer is adapted to the flight time and depends on the time of departure. In the Business cabin, each customer is served a generous breakfast or cold meal signed by François Adamski, Servair corporate chef, Meilleur ouvrier de France and Bocuse d’or. A range of wines and champagnes chosen by Paolo Basso, world’s best sommelier in 2013, and a wide selection of hot and cold drinks complete the package. In the Economy cabin, biscuits or sandwiches including a vegetarian choice are available. A wide range of alcoholic and non-alcoholic beverages is also available.

A latest-generation aircraft to enhance Air France’s performance

The latest jewel in Air France’s medium-haul fleet, the Airbus A220-300 is the most innovative and efficient single-aisle aircraft in its category. It embodies Air France’s commitment to improving its economic and environmental performance, with a cost reduction per seat of 10% compared to the aircraft it replaces and unrivalled energy performance, a 20% reduction in CO2 emissions and a 34% reduced noise footprint.

These characteristics will play a decisive role in reducing Air France’s environmental footprint and achieving its sustainable development objectives. By 2030, the airline will have reduced its overall CO2 emissions per passenger/km by 50% compared to 2005, or 15% in absolute terms. Air France is also committed to working with all its stakeholders and the public authorities to achieve the climate target of zero net CO2 emissions by 2050.

The renewal of the fleet is the main source of decarbonization available in the short term. Air France invests 1 billion euros every year to integrate the latest generation aircraft, Airbus A350-900 on long-haul routes and Airbus A220-300 on short and medium-haul routes, with a reduction in CO2 emissions of between 20 and 25%.

It's D-day. This morning sees the first commercial flight of our new A220 to Berlin. Let's relive in pictures all the first times that marked this event!✈️ pic.twitter.com/34jB4XtMxB

— Air France (@airfrance) October 31, 2021

Top Copyright Photo: Air France Airbus A220-300 (CS300) F-HZUA (msn 55134) BSL (Paul Bannwarth). Image: 955707.

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JetBlue arrives in San Antonio

JetBlue Airways today announced it has officially launched service at San Antonio International Airport (SAT) from both New York’s John F. Kennedy International Airport (JFK) and Boston Logan International Airport (BOS), with the first flights landing in the Texas city this afternoon.