Tag Archives: 737-45D

Southern Air eliminates all of its long-term debt with a debt-for-equity exchange

Southern Air (2nd) (DHL) (Cincinnati) has issued this statement about its restructuring process:

Southern Air Holdings, Inc. (SAHI) has completed a debt-to-equity exchange that eliminates all of the company’s long-term debt, enabling SAHI to significantly enhance its strategic position and growth plans.

The consensual secured debt-to-preferred equity exchange satisfies approximately $90 million in senior secured term debt by issuing to its former term lenders a new class of preferred stock and warrants. The newly issued preferred stock is non-voting and non-convertible, and provides for an annual stated yield accruing in kind (not in cash), and a liquidation preference over common shares. The exchange transaction was approved by the United States Department of Transportation and by 100% of the participating term loan lenders. In addition to the debt-for-preferred equity exchange, SAHI’s lenders agreed to renew and increase to $20 million a working capital line of credit in favor of various SAHI affiliates.

“The completion of this debt-for-equity exchange sets a new stage for growth in our air cargo platforms,” said SAHI and Worldwide CEO Dan McHugh. “Southern Air now has a clean balance sheet and no long term debt. With positive cash flow, we are poised to grow our existing 777 and 737 programs with global logistics leader DHL Express and other global customers, and in view of the closing of our acquisition of 767 carrier Florida West International Airways (Florida West), Worldwide is strengthening and expanding its highly reliable, cost efficient and customer-oriented ACMI, CMI and other air cargo services.”

Worldwide recently announced its plans to acquire Miami-based Florida West, a U.S. all cargo carrier operating 767 aircraft.

McHugh added, “Our lenders’ willingness to convert all of their term debt to preferred equity demonstrates a firm commitment to SAHI’s management vision, strategic positioning and growth plans, and we greatly appreciate their support in this debt conversion process.”

SAHI was advised in the transaction by the investment banking firm Imperial Capital and the law firm Berger Singerman.

Southern Air currently operates four Boeing 777-200 freighters on an around-the-world basis for the leading global express delivery provider DHL. Southern Air also operates five Boeing 737 aircraft for DHL, flying key routes to support DHL’s North American air networks.

All Boeing 747s have been retired.

 

Copyright Photo: Chris Sands/AirlinersGallery.com. Southern Air now operates five Boeing 737-400 freighters in DHL colors including ex-LOT 737-45D N495SA (msn 27157) at Calgary.

DHL-Southern Air aircraft slide show: AG Airline Slide Show

Southern Air aircraft slide show: AG Airline Slide Show

AG Designed by photographers

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LOT Polish Airlines will not seek any more public aid, will drop underperforming destinations during the winter season

LOT Polish Airlines (Warsaw) will not apply in September to the Treasury for payment of the second tranche of public aid. According to the airline, this is possible thanks to the promising results of the Restructuring Plan consistently implemented in the Company. At the same time LOT is introducing the flight schedule for the winter season 2013/2014 to its reservation systems. A new network is in line with the Restructuring Plan submitted by the Ministry of the Treasury to the European Commission. It is also a result of necessary compensation required by the European Commission.

The first tranche of aid for LOT was paid in December of last year. Disbursement of the second – in accordance with the Restructuring Plan submitted by the Ministry of the Treasury to the European Commission – was planned for August this year. Meanwhile, the Company has not applied for the second tranche in August and will not apply for it in September. An amount of the second tranche will be carefully assessed when the Company will apply to the Treasury for its payment. Perhaps this will happen only in October.

According to its underlying principles, the Company will achieve sustained profitability starting from 2015.

Consistently implemented restructuring measures include, among others, the network of destinations for the winter season. These changes are in line with the objectives of the Restructuring Plan submitted in June by the Ministry of Treasury to the European Commission. They are also a result of necessary compensation required by the European Commission. Within planned changes, destinations from Warsaw to Bydgoszcz, Rome and Stuttgart will be suspended from the beginning of the winter season 2013. In the coming months, passengers will also not find in the network flights to Beirut, Cairo and Nice, which are seasonal destinations. At the same time, like last winter, flights with the aircraft staying overnight from Warsaw to Stockholm will be suspended. This means two, not three flights a day to the Swedish capital.

The Polish carrier also decided to suspend flights from Warsaw to Zurich, Helsinki and Dusseldorf. These destinations did not generate enough transfer traffic for other LOT flights from Warsaw, especially the long haul which are key to the company’s long-term strategy.

Since, in accordance with assumptions, LOT focuses on expansion of its hub in Warsaw, there will be also less flights from Polish regional airports. In winter 2013, LOT aircrafts will not fly from Cracow to Frankfurt, from Poznan to Munich and from Katowice to Munich.

At the same time, flights from Warsaw to Yerevan, Athens and Belgrade will be unchanged in the coming winter season. Belgrade, one of the strongest destinations in the network of the Polish carrier, will continue to support the flow of transit passengers in their further travel to North America or other European ports. And Athens will remain in the flight schedule due to Greek Presidency of the European Union, which will begin on  January 1, 2014.

Copyright Photo: TMK Photography. LOT Polish has been gradually replacing its older Boeing 737 fleet with newer Embraer E-Jets. The remaining 737-400s are likely to be retired this winter with this schedule reduction. Boeing 737-45D SP-LLF (msn 28752) approaches Belgium for landing in the updated 2011 livery.

LOT Polish Airlines: AG Slide Show

LOT Polish Airlines celebrates 80 Years with special logojet

 

LOT Polish 737-400 SP-LLC (09-80th)(Ldg) WAW (ATM)(LR)

Copyright Photo: Antoni Mazur. SP-LLC lands at the WAW base with the special markings.

LOT Polish Airlines (Warsaw) has taken its gold “Common Task”-adorned Boeing 737-45D SP-LLC (msn 27157) and added a big “80” with smaller “Flying since 1929” sub-titles as it celebrates its 80th Anniversary.  Congratulations LOT.

 

Czech Airlines leases Nayzak two 737-400s

 

 

Please click on photo for full view and caption.

Please click on photo for full view and caption.

Czech Airlines-CSA (Prague) has finalized a lease of two 162-passenger Boeing 737-400s to Nayzak Air Transport (Tripoli). The lease will run through May 2010. Previously Nayzak signed a lease for three 737-400s from Centralwings. The private airline was formed in 2005 and commenced operations on June 6, 2006.