Brazil's No. 2 airline, Gol, confirmed on Friday it plans to buy smaller rival Webjet for BRR96 million reais (USD$61.4 million), the latest consolidation in the booming Latin American airline sector. Gol Linhas Aereas will complete the transaction to buy 100 percent of Webjet through its Varig subsidiary. Webjet has been valued at BRR311 million reais, much more than the deal price. The filing did not explain why the price was less than a third of Webjet's estimated worth, or whether Gol would assume any debt as part of the deal. Gol said the deal's completion still depended on legal and technical audits of Webjet and the approval of government authorities. It said it would provide more details on July 11.
A source said earlier on Friday that lawyers representing the Constantino family -- Gol's majority shareholders -- and Webjet's biggest shareholder, Guilherme Paulus, had been finalising the terms. The takeover underscores Gol's efforts to expand capacity to meet growing demand as more Brazilians use air travel as household incomes increase. Webjet operates 154 daily flights to 14 Brazilian destinations, including the country's largest cities, while Gol operates around 900 flights per day. Webjet's Paulus sold a controlling stake in his tourism company, CVC, last year to buyout firm Carlyle Group in a deal valued at USD$300 million at the time. He refused to include Webjet because he expected better offers from other parties, people familiar with the situation said at the time.
The potential alliance comes as Gol faces increased competition from a handful of relatively new carriers in Brazil which, like Webjet, target routes largely underserved by Gol and its largest rival TAM. TAM and start-up TRIP signed a letter of intent in March to explore a potential "strategic alliance" that would complement their existing codeshare agreement. Brazil's No. 2 airline, Gol, confirmed on Friday it plans to buy smaller rival Webjet for BRR96 million reais (USD$61.4 million), the latest consolidation in the booming Latin American airline sector.
Gol Linhas Aereas will complete the transaction to buy 100 percent of Webjet through its Varig subsidiary. Webjet has been valued at BRR311 million reais, much more than the deal price. The filing did not explain why the price was less than a third of Webjet's estimated worth, or whether Gol would assume any debt as part of the deal. Gol said the deal's completion still depended on legal and technical audits of Webjet and the approval of government authorities. It said it would provide more details on July 11. A source said earlier on Friday that lawyers representing the Constantino family -- Gol's majority shareholders -- and Webjet's biggest shareholder, Guilherme Paulus, had been finalising the terms.
The takeover underscores Gol's efforts to expand capacity to meet growing demand as more Brazilians use air travel as household incomes increase.
Webjet operates 154 daily flights to 14 Brazilian destinations, including the country's largest cities, while Gol operates around 900 flights per day.
Webjet's Paulus sold a controlling stake in his tourism company, CVC, last year to buyout firm Carlyle Group in a deal valued at USD$300 million at the time. He refused to include Webjet because he expected better offers from other parties, people familiar with the situation said at the time.
The potential alliance comes as Gol faces increased competition from a handful of relatively new carriers in Brazil which, like Webjet, target routes largely underserved by Gol and its largest rival TAM.
TAM and start-up TRIP signed a letter of intent in March to explore a potential "strategic alliance" that would complement their existing codeshare agreement. Webjet is Brazil's fourth largest carrier, while TRIP is the sixth biggest.
TAM plans to merge with Chilean carrier LAN Airlines, which could create Latin America's largest airline. The deal is pending approval by Chilean authorities.
Webjet is Brazil's fourth largest carrier, while TRIP is the sixth biggest. TAM plans to merge with Chilean carrier LAN Airlines, which could create Latin America's largest airline. The deal is pending approval by Chilean authorities.
Monday, July 11, 2011
Sunday, July 10, 2011
AirAsia extend Airbus order by another 100 A320neo
AirAsia will buy an extra 100 Airbus A320neo jets, taking its record-breaking order to 300 planes, a source said, a deal that would make the Malaysia-based low-cost airline one of the world's largest carriers. AirAsia and Airbus announced an USD$18.2 billion deal for 200 planes at the Paris Air Show last month, shattering aviation records for the largest ever airline order. The additional order takes the list price of the contract to a staggering USD$27 billion. The bumper order highlights Airbus's growing lead over Boeing and throws the spotlight on AirAsia's aggressive growth plans at a time when high oil prices and an uncertain global economy are clouding the outlook for travel demand. Analysts expect the extended order to drive AirAsia's expansion as it competes with short-haul carriers such as India's IndiGo, Singapore's Tiger Airways and Australia's Jetstar in the Asia-Pacific region, the fastest growing in the world. "AirAsia's last replacement order was in 2007/2008. These new orders are long overdue so it's not an aggressive order," said Kunal Sinha, an aerospace expert with the Frost & Sullivan consultancy. "AirAsia's new fleet is to be used mostly to link Southeast Asia to India and China. By 2015, Southeast Asia will have open skies so you have to have a growth plan."
Boeing on Wednesday said it expected 33,500 new planes to be delivered by 2030, driven by growth in India and elsewhere in Asia. AirAsia plans to list its operations in Thailand and Indonesia this year as it expands in those markets and is in talks to open a hub in Singapore, its chief executive Tony Fernandes has said. Like the previous order, the additional 100 planes would also use CFM International engines, the source with direct knowledge of the deal said, declining to be identified because the deal is not public yet. The source said AirAsia would receive a discount for the entire order, but did not give further details. AirAsia's regional head for corporate finance and treasury Aireen Omar said, "We ordered 200 and so far there are no changes." An Airbus spokesman said the manufacturer would not comment on commercial discussions with customers that were confidential. AirAsia, which flies to 63 destinations in more than 20 countries, has 90 planes currently, almost all single-aisle Airbus A320s. Besides the 300 Airbus A320neo deal, it has another 75 Airbus aircraft already on order. "Though we look aggressive, we have expanded very cautiously," Fernandes said this week. "But I have always said this airline is worth at least 500 aircraft."
According to International Air Transport Association (IATA) data, United Continental had the largest passenger fleet of 737 planes at the end of 2010, followed by Delta Air Lines with 722, American Airlines with 618 and Lufthansa with 427. Non-IATA member Southwest Airlines, the only low-cost carrier currently in the top five, has around 550 planes. "AirAsia had the first-mover advantage and it continues to stay ahead of the game by ordering fuel-efficient planes and keeping the size growing," said an aviation analyst with a Malaysian investment bank who declined to be identified due to company policy. "But the key risk is if expansion plans do not succeed. The Malaysian base is fairly saturated so if the other markets do not grow or cannot take off because of protectionism or other factors, then they will find themselves having to manage a lot of aircraft," the analyst said.
Fernandes said the A320neo purchases would be funded by debt and cash flow as staggered deliveries begin in 2016. "We're buying the planes now, we don't pay for it all now. They become due in 2016 so we're just paying some deposits now which is not erroneous at all to our balance sheet." The A320neo is a version of Airbus's best-selling 150-seat passenger jet offering fuel savings with new engines from 2015. The huge orders for the single-aisle plane at the Paris Air Show have piled pressure on rival Boeing to come up with a newer version of its 737 workhorse. Fernandes said his airline's growth was closely twinned with Airbus. "We have a fantastic relationship with Airbus," he said. "They are much more than just suppliers to us. I credit them tremendously with our growth and I want to be more than just a customer of theirs."
It is now part of aviation industry lore that Fernandes asked Airbus chief salesman Joe Leahy to come on to the dance floor of a Paris nightclub before signing the A320neo deal. "As part of a family we do some crazy things together," the 47-year-old Malaysian millionaire said. Asian budget airlines placed a record USD$42 billion in plane orders during the Paris Air Show, illustrating their high expectations for travel in the world's fastest growing market and also triggering worries some may not survive. Many of the no-frills carriers such as AirAsia and Indigo aim to more than double their fleets to power rapid growth, partly at the expense of full-service airlines such as Cathay Pacific and Singapore Airlines. Worldwide passenger demand is expected to rise 4.4 percent over the next year with the Asia-Pacific region growing faster at 6.4 percent, according to IATA, which represents the majority of airlines operating in the USD$598 billion industry. The Centre for Asia Pacific Aviation, an independent aviation market research provider, said low-cost carriers accounted for 16 percent of the market in terms of seats within Asia Pacific last year, up from 6 percent in 2005. Their market share is set to rise 2 percentage points annually to about 26 percent in 2015, it said.
Boeing on Wednesday said it expected 33,500 new planes to be delivered by 2030, driven by growth in India and elsewhere in Asia. AirAsia plans to list its operations in Thailand and Indonesia this year as it expands in those markets and is in talks to open a hub in Singapore, its chief executive Tony Fernandes has said. Like the previous order, the additional 100 planes would also use CFM International engines, the source with direct knowledge of the deal said, declining to be identified because the deal is not public yet. The source said AirAsia would receive a discount for the entire order, but did not give further details. AirAsia's regional head for corporate finance and treasury Aireen Omar said, "We ordered 200 and so far there are no changes." An Airbus spokesman said the manufacturer would not comment on commercial discussions with customers that were confidential. AirAsia, which flies to 63 destinations in more than 20 countries, has 90 planes currently, almost all single-aisle Airbus A320s. Besides the 300 Airbus A320neo deal, it has another 75 Airbus aircraft already on order. "Though we look aggressive, we have expanded very cautiously," Fernandes said this week. "But I have always said this airline is worth at least 500 aircraft."
According to International Air Transport Association (IATA) data, United Continental had the largest passenger fleet of 737 planes at the end of 2010, followed by Delta Air Lines with 722, American Airlines with 618 and Lufthansa with 427. Non-IATA member Southwest Airlines, the only low-cost carrier currently in the top five, has around 550 planes. "AirAsia had the first-mover advantage and it continues to stay ahead of the game by ordering fuel-efficient planes and keeping the size growing," said an aviation analyst with a Malaysian investment bank who declined to be identified due to company policy. "But the key risk is if expansion plans do not succeed. The Malaysian base is fairly saturated so if the other markets do not grow or cannot take off because of protectionism or other factors, then they will find themselves having to manage a lot of aircraft," the analyst said.
Fernandes said the A320neo purchases would be funded by debt and cash flow as staggered deliveries begin in 2016. "We're buying the planes now, we don't pay for it all now. They become due in 2016 so we're just paying some deposits now which is not erroneous at all to our balance sheet." The A320neo is a version of Airbus's best-selling 150-seat passenger jet offering fuel savings with new engines from 2015. The huge orders for the single-aisle plane at the Paris Air Show have piled pressure on rival Boeing to come up with a newer version of its 737 workhorse. Fernandes said his airline's growth was closely twinned with Airbus. "We have a fantastic relationship with Airbus," he said. "They are much more than just suppliers to us. I credit them tremendously with our growth and I want to be more than just a customer of theirs."
It is now part of aviation industry lore that Fernandes asked Airbus chief salesman Joe Leahy to come on to the dance floor of a Paris nightclub before signing the A320neo deal. "As part of a family we do some crazy things together," the 47-year-old Malaysian millionaire said. Asian budget airlines placed a record USD$42 billion in plane orders during the Paris Air Show, illustrating their high expectations for travel in the world's fastest growing market and also triggering worries some may not survive. Many of the no-frills carriers such as AirAsia and Indigo aim to more than double their fleets to power rapid growth, partly at the expense of full-service airlines such as Cathay Pacific and Singapore Airlines. Worldwide passenger demand is expected to rise 4.4 percent over the next year with the Asia-Pacific region growing faster at 6.4 percent, according to IATA, which represents the majority of airlines operating in the USD$598 billion industry. The Centre for Asia Pacific Aviation, an independent aviation market research provider, said low-cost carriers accounted for 16 percent of the market in terms of seats within Asia Pacific last year, up from 6 percent in 2005. Their market share is set to rise 2 percentage points annually to about 26 percent in 2015, it said.
Friday, July 8, 2011
Passenger Jet crashes in Congo
An airliner plowed into dense forest as it tried to land during a rainstorm in the Democratic Republic of Congo on Friday, killing 127 people on board, the Congolese transport ministry said. There were 51 survivors, a ministry statement said. The chief executive of the airline involved in the crash told Reuters earlier that there had been 110 people on board the plane, of whom 53 had died and 57 survived. But a spokesman for the transport ministry, Gudile Bualya, accused the airline of underestimating the number of passengers.
The accident at the international airport of Kisangani, a commercial center and river port town in the east, is the latest in a string of disasters in the vast central African country which has saddled it with one of the worst air safety records in the world. "The pilot tried to land but apparently they didn't touch the runway," Stavros Papaioannou, chief executive of Hewa Bora airline, told Reuters by telephone. Hewa Bora is on a European Union list of airlines banned due to security concerns, as are all carriers certified in Congo. It is the second fatal accident involving the airline in three years, after its DC-9 airliner plowed into a suburb of the eastern Congolese city of Goma, killing 44, in 2008.
Earlier, government spokesman Lambert Mende said rescue services had pulled 40 survivors from the Boeing 727. Jean-Paul Bongisa, a local reporter for Congolese state television at the scene of the crash, told Reuters the rescue was being hampered by difficulties in reaching the wreckage, some 200 meters (yards) from the runway in dense equatorial forest. Congo is roughly the same size as Western Europe but rail and road links through its jungles are few, so air and river travel are usually the only viable options for long distance journeys. In April, 32 people were killed when a U.N. plane crashed as it tried to land at the airport serving Congo's capital Kinshasa. The operator of the plane was Georgian flag carrier Airzena Georgian Airways. According to Hewa Bora's website, the airline has two Boeing 727s, both configured as passenger planes with 137 economy seats and 12 business class seats. They fly purely within Congo. Once the world's best-selling airliner, the Boeing 727 first flew in 1963 and was designed for short- and medium-haul routes. The last aircraft was delivered in 1984.
The accident at the international airport of Kisangani, a commercial center and river port town in the east, is the latest in a string of disasters in the vast central African country which has saddled it with one of the worst air safety records in the world. "The pilot tried to land but apparently they didn't touch the runway," Stavros Papaioannou, chief executive of Hewa Bora airline, told Reuters by telephone. Hewa Bora is on a European Union list of airlines banned due to security concerns, as are all carriers certified in Congo. It is the second fatal accident involving the airline in three years, after its DC-9 airliner plowed into a suburb of the eastern Congolese city of Goma, killing 44, in 2008.
Earlier, government spokesman Lambert Mende said rescue services had pulled 40 survivors from the Boeing 727. Jean-Paul Bongisa, a local reporter for Congolese state television at the scene of the crash, told Reuters the rescue was being hampered by difficulties in reaching the wreckage, some 200 meters (yards) from the runway in dense equatorial forest. Congo is roughly the same size as Western Europe but rail and road links through its jungles are few, so air and river travel are usually the only viable options for long distance journeys. In April, 32 people were killed when a U.N. plane crashed as it tried to land at the airport serving Congo's capital Kinshasa. The operator of the plane was Georgian flag carrier Airzena Georgian Airways. According to Hewa Bora's website, the airline has two Boeing 727s, both configured as passenger planes with 137 economy seats and 12 business class seats. They fly purely within Congo. Once the world's best-selling airliner, the Boeing 727 first flew in 1963 and was designed for short- and medium-haul routes. The last aircraft was delivered in 1984.
Wednesday, June 29, 2011
China signs for 88 new Airbus 320 aircrafts
China placed an order for 88 Airbus A320 planes on Tuesday, putting a bubbling trade row with Europe over a proposed emissions scheme aside as it tries to to fuel economic growth. Airbus said on Tuesday it had signed the deal with China Aviation Supplies and Industrial Commerce Bank of China. The deal, worth USD$7.5 billion at list prices and with deliveries scheduled for 2012-15, was signed by Airbus president Tom Enders and CAS President Li Hai during a visit to Germany by Chinese Premier Wen Jiabao. The visit came days after industry sources said China had delayed the high-profile announcement of a USD$3.8 billion order for 10 Airbus A380 superjumbo jets at the Paris Air Show to protest over European Union emissions trading rules. Under plans to include international aviation in its carbon market from next year, the EU would require all airlines flying to Europe to buy permits for each tonne of carbon dioxide they emit above a certain cap.
While China continues to put the brakes on lucrative orders of European wide-body aircraft, industry analysts said it seemed as though China was pulling back from a full-blown trade spat to protect economic growth. Although it plans to start competing with Airbus and Boeing by building its own narrow-body passenger jets from the second half of this decade, China is still ordering large volumes of Airbus A320s and Boeing 737s to feed huge traffic growth. Ordering A320s is also in the country's interest as Airbus began assembling planes for the Chinese market at a factory in Tianjin, outside Beijing, in 2009. While China typically schedules aircraft orders to coincide with political visits, the deals can be difficult to break down. In November 2010, China and France announced 102 Airbus orders during a visit to Paris by President Hu Jintao, but the manufacturer said only 66 involved new contracts. In January, China announced final approval for 200 Boeing aircraft worth USD$19 billion in a boost for President Barack Obama as Hu visited the United States. Again, analysts said the deals had been in the works and accounted for by investors for some time.
Tuesday's orders were all new and firm, Airbus claimed.
While China continues to put the brakes on lucrative orders of European wide-body aircraft, industry analysts said it seemed as though China was pulling back from a full-blown trade spat to protect economic growth. Although it plans to start competing with Airbus and Boeing by building its own narrow-body passenger jets from the second half of this decade, China is still ordering large volumes of Airbus A320s and Boeing 737s to feed huge traffic growth. Ordering A320s is also in the country's interest as Airbus began assembling planes for the Chinese market at a factory in Tianjin, outside Beijing, in 2009. While China typically schedules aircraft orders to coincide with political visits, the deals can be difficult to break down. In November 2010, China and France announced 102 Airbus orders during a visit to Paris by President Hu Jintao, but the manufacturer said only 66 involved new contracts. In January, China announced final approval for 200 Boeing aircraft worth USD$19 billion in a boost for President Barack Obama as Hu visited the United States. Again, analysts said the deals had been in the works and accounted for by investors for some time.
Tuesday's orders were all new and firm, Airbus claimed.
Wednesday, June 22, 2011
More Pilots and Mechanics needed - Boeing
The world’s commercial airlines will need 460,000 new pilots and 650,000 new maintenance technicians by 2030, Boeing predicted Wednesday.
“Clearly, the sheer size of this vital pipeline is staggering,” Sherry Carbary, vice president, Boeing Flight Services, said in a news release. “To meet the demand for capable, well-trained people, Boeing and the aviation industry need to move with the speed of technology to provide the tools, training and work environment that tech-savvy pilots and technicians will expect from us.”
The demand amounts to an average of 23,000 new pilots and 32,500 new technicians per year to account for growth and retirements.
The Asia Pacific region alone will need 182,300 pilots, 72,700 of them in China, and 247,400 technicians, 108,300 in China. Here’s projected demand in other regions:
“Clearly, the sheer size of this vital pipeline is staggering,” Sherry Carbary, vice president, Boeing Flight Services, said in a news release. “To meet the demand for capable, well-trained people, Boeing and the aviation industry need to move with the speed of technology to provide the tools, training and work environment that tech-savvy pilots and technicians will expect from us.”
The demand amounts to an average of 23,000 new pilots and 32,500 new technicians per year to account for growth and retirements.
The Asia Pacific region alone will need 182,300 pilots, 72,700 of them in China, and 247,400 technicians, 108,300 in China. Here’s projected demand in other regions:
- North America – 82,800 pilots and 134,800 technicians;
- Europe – 92,500 pilots and 129,600 technicians;
- Africa – 14,300 pilots and 19,200 technicians;
- Middle East – 36,600 pilots and 53,000 technicians;
- Latin America – 41,200 pilots and 52,500 technicians;
- Russia and the Commonwealth of Independent States – 9,900 pilots and 13,500 technicians.
Paris air show aircraft orders' list
The orders confirmed by Airbus and Boeing as it stands at Paris air show.
Company Firm Value Provisional Value
Airbus 312 $30.2 bln 318 $29.5 bln
Boeing 47 $7.5 bln 94 $14.9 bln
Last year at Farnborough Airshow, Airbus unveiled net new orders for 130 planes worth over $13 billion, and Boeing 103 new orders worth over $10 billion.
Between them, they racked up a combined 176 provisional orders worth over $19 billion
AIRBUS ORDERS BY CUSTOMER:
FIRM ORDERS
Company No of aircraft Type Value
LAN 20 A320neo $1.8 bln
IndiGo 30 A320 $2.5 bln
IndiGo 150 A320neo $13.7 bln
TransAsia 6 A321neo $0.6 bln
Air Lease Corp 11 A330 $2.4 bln
Air Lease Corp 1 A321 $0.1 bln
SAS 30 A320neo $2.7 bln
GECAS 60 A320neo $5.5 bln
Saudi Arabian 4 A330 $0.9 bln
PROVISIONAL ORDERS
Company No of aircraft Type Value
Alafco 30 A320neo $2.7 bln
Republic 40 A320neo $3.6 bln
Republic 40 A319neo $3.4 bln
Avianca 18 A320 $1.5 bln
Avianca 33 A320neo $3.0 bln
Alafco 6 A350-900 $1.6 bln
Garuda 15 A320 $1.3 bln
Garuda 10 A320neo $0.9 bln
JetBlue 40 A320neo $3.6 bln
CIT 50 A320neo $4.6 bln
Air Lease Corp 36 A320neo $3.3 bln
BOEING ORDERS BY CUSTOMER:
FIRM ORDERS
Company No of aircraft Type Value
*Malaysian 10 737-800 $0.8 bln
*Aeroflot 8 777-300ER $2.3 bln
Norwegian 3 787 $0.6 bln
Norwegian 15 737-800 $1.2 bln
Mongolian 1 767-300ER $0.16bln
Mongolian 2 737-800 $0.16bln
Unidentified 2 747-8 $0.6 bln
*Qatar Airways 6 777-300ER $1.7 bln * - orders were previously in Boeing order book but customer was unidentified
PROVISIONAL ORDERS
Company No of aircraft Type Value
UTair Aviation 7 737-900ER $0.6 bln
UTair Aviation 33 737-800 $2.7 bln
GECAS 8 777-300ER $2.3 bln
GECAS 2 747-8F $0.6 bln
Unidentified 15 747-8 $4.8 bln
Air Lease Corp 20 737 $1.6 bln
Air Lease Corp 5 777 $1.4 bln
Air Lease Corp 4 787-9 $0.9 bln
Company Firm Value Provisional Value
Airbus 312 $30.2 bln 318 $29.5 bln
Boeing 47 $7.5 bln 94 $14.9 bln
Last year at Farnborough Airshow, Airbus unveiled net new orders for 130 planes worth over $13 billion, and Boeing 103 new orders worth over $10 billion.
Between them, they racked up a combined 176 provisional orders worth over $19 billion
AIRBUS ORDERS BY CUSTOMER:
FIRM ORDERS
Company No of aircraft Type Value
LAN 20 A320neo $1.8 bln
IndiGo 30 A320 $2.5 bln
IndiGo 150 A320neo $13.7 bln
TransAsia 6 A321neo $0.6 bln
Air Lease Corp 11 A330 $2.4 bln
Air Lease Corp 1 A321 $0.1 bln
SAS 30 A320neo $2.7 bln
GECAS 60 A320neo $5.5 bln
Saudi Arabian 4 A330 $0.9 bln
PROVISIONAL ORDERS
Company No of aircraft Type Value
Alafco 30 A320neo $2.7 bln
Republic 40 A320neo $3.6 bln
Republic 40 A319neo $3.4 bln
Avianca 18 A320 $1.5 bln
Avianca 33 A320neo $3.0 bln
Alafco 6 A350-900 $1.6 bln
Garuda 15 A320 $1.3 bln
Garuda 10 A320neo $0.9 bln
JetBlue 40 A320neo $3.6 bln
CIT 50 A320neo $4.6 bln
Air Lease Corp 36 A320neo $3.3 bln
BOEING ORDERS BY CUSTOMER:
FIRM ORDERS
Company No of aircraft Type Value
*Malaysian 10 737-800 $0.8 bln
*Aeroflot 8 777-300ER $2.3 bln
Norwegian 3 787 $0.6 bln
Norwegian 15 737-800 $1.2 bln
Mongolian 1 767-300ER $0.16bln
Mongolian 2 737-800 $0.16bln
Unidentified 2 747-8 $0.6 bln
*Qatar Airways 6 777-300ER $1.7 bln * - orders were previously in Boeing order book but customer was unidentified
PROVISIONAL ORDERS
Company No of aircraft Type Value
UTair Aviation 7 737-900ER $0.6 bln
UTair Aviation 33 737-800 $2.7 bln
GECAS 8 777-300ER $2.3 bln
GECAS 2 747-8F $0.6 bln
Unidentified 15 747-8 $4.8 bln
Air Lease Corp 20 737 $1.6 bln
Air Lease Corp 5 777 $1.4 bln
Air Lease Corp 4 787-9 $0.9 bln
Tuesday, June 21, 2011
Boeing bags an additional 10 B737-800NG order from Malaysian Airlines
Boeing and Kuala Lumpur-based Malaysia Airlines today announced the airline has exercised an option to purchase 10 additional Next-Generation 737-800s. The order is valued at more than $800 million at current list prices. The airline still has purchase rights for an additional 10 Next-Generation 737-800s remaining from their initial 2008 contract. Today's announcement was made at the Paris Air Show by Boeing Commercial Airplanes Vice President of Sales & Marketing Marlin Dailey and Malaysia Airlines Managing Director & Chief Executive Officer, Tengku Dato' Sri Azmil Zahruddin Raja Abdul Aziz. His Excellency Tan Sri Abdul Aziz Zainal, the Malaysian Ambassador to France, was also in Paris for the signing ceremony. "Today we celebrate Malaysia Airlines as key member of the Next-Generation 737 family of operators and we welcome this occasion to strengthen our long-term relationship with a valued partner," Dailey said. "The selection of the Next-Generation 737 to support the airline's strategic fleet modernization plan reinforces the superior economics of the most fuel efficient single-aisle airplane operating in today's market."
Malaysia's 737s are the first in Asia to sport the passenger-pleasing Boeing Sky Interior and are fitted with Blended Winglets, which improve fuel efficiency by up to four percent, increase flying range, and reduce CO2 emissions and takeoff noise. "The option we exercised today marks another step in Malaysia Airlines' mission to strengthen and build upon the airline's award-winning service and passenger value, efforts that support the company's business transformation strategy to profitable operation," said Tengku Azmil. "Boeing's Next-Generation 737, with its economic advantages, including unmatched fuel efficiency, is the right airplane to support our business and our customers." The digitally designed Next-Generation 737 is the most technologically advanced airplane family in the single-aisle market. The 737-800, which can seat up to 189 passengers, is 771 kilograms (1,700 pounds) lighter, can fly 583 kilometers (315 nautical miles) farther while carrying 12 more passengers than the competing model. Malaysia Airlines, with a 64-year history as the national carrier of Malaysia, operates a mixed fleet of short- and long-haul airplanes, including 747 passenger and freighter, 777, 737-800s and Classic 737 airplanes. The airline flies nearly 45,000 passengers daily to more than 100 destinations worldwide.
Malaysia's 737s are the first in Asia to sport the passenger-pleasing Boeing Sky Interior and are fitted with Blended Winglets, which improve fuel efficiency by up to four percent, increase flying range, and reduce CO2 emissions and takeoff noise. "The option we exercised today marks another step in Malaysia Airlines' mission to strengthen and build upon the airline's award-winning service and passenger value, efforts that support the company's business transformation strategy to profitable operation," said Tengku Azmil. "Boeing's Next-Generation 737, with its economic advantages, including unmatched fuel efficiency, is the right airplane to support our business and our customers." The digitally designed Next-Generation 737 is the most technologically advanced airplane family in the single-aisle market. The 737-800, which can seat up to 189 passengers, is 771 kilograms (1,700 pounds) lighter, can fly 583 kilometers (315 nautical miles) farther while carrying 12 more passengers than the competing model. Malaysia Airlines, with a 64-year history as the national carrier of Malaysia, operates a mixed fleet of short- and long-haul airplanes, including 747 passenger and freighter, 777, 737-800s and Classic 737 airplanes. The airline flies nearly 45,000 passengers daily to more than 100 destinations worldwide.
Yet another Tupolev crashes in Russia
A passenger jet crashed in heavy fog and burst into flames late Monday on a highway in north-western Russia, just short of a runway whose fog lights had failed, killing 44 people, officials said. Eight people survived the crash. The Tu-134 plane, belonging to the RusAir airline, was en route from Moscow to the city of Petrozavodsk, an Emergencies Ministry spokeswoman, Oksana Semyonova, told The Associated Press. Her ministry said in a website statement that 44 people were killed. Eight survivors, including a 10-year-old boy and a female flight attendant, were hospitalized in critical condition in Petrozavodsk.
Semyonova said the plane went down on its final approach to the airport in Petrozavodsk, making a crash landing one to two kilometres (about a mile) short of the runway, breaking apart and then bursting into flames. It was unclear if the plane had attempted to land on the road, or just happened to fall there, she said. Petrozavodsk is in Karelia province, near the Finnish border, about 400 miles (640 kilometres) northwest of Moscow. Authorities had no immediate explanation for the accident, but the Interfax news agency quoted the airport director Alexei Kuzmitsky as saying there were "unfavourable weather conditions." Compounding the pilot's troubles was the failure of the runway's high-intensity illumination, which is supposed to be deployed at times of low visibility, Alexei Morozov, deputy head of the Interstate Aviation Committee, told the ITAR-Tass news agency.
A RusAir representative who declined to give his name told The Associated Press that the plane was in good working order and that the weather conditions, although tricky, "weren't critical." The Tupolev 134, along with its larger sibling the Tu-154, has been the workhorse of Soviet and Russian civil aviation since the 1960s. The model that crashed was built in 1980, had a 68-person capacity and a range of about 2,000 kilometres (1,240 miles). Photographs on the ministry website showed fragments of metal strewn across a road as thick fog hung over woodland in the background. A landing gear jutting out from the ground was the only recognizable plane part. The plane was carrying 52 people, including nine crew members, Semyonova said. Russian news agencies said Russian Premier League soccer referee Vladimir Pettay and a Swedish citizen were among the victims.
The Karelia branch of the Emergencies Ministry said radio contact with the pilot was lost at 11:40 p.m. local time (7:30 p.m. EDT, 1940 GMT). The black box flight data recorders have been recovered, the news agencies said. The accident occurred on the eve of Prime Minister Vladimir Putin's planned appearance Tuesday at the Paris Air Show to support dozens of Russian firms seeking sales contracts. Russia and the other former Soviet republics have some of the world's worst air traffic safety records, according to the International Air Transport Association. Experts blame weak government controls, poor pilot training and a cost-cutting mentality for the poor safety record, leading to emergency landings being reported with alarming regularity. Polish President Lech Kaczynski was among 96 people killed when his Tu-154 crashed in heavy fog while trying to land near the western city of Smolensk in April 2010. In 2006, three crashes - two in Russia and one in Ukraine - killed more than 400 people.
Semyonova said the plane went down on its final approach to the airport in Petrozavodsk, making a crash landing one to two kilometres (about a mile) short of the runway, breaking apart and then bursting into flames. It was unclear if the plane had attempted to land on the road, or just happened to fall there, she said. Petrozavodsk is in Karelia province, near the Finnish border, about 400 miles (640 kilometres) northwest of Moscow. Authorities had no immediate explanation for the accident, but the Interfax news agency quoted the airport director Alexei Kuzmitsky as saying there were "unfavourable weather conditions." Compounding the pilot's troubles was the failure of the runway's high-intensity illumination, which is supposed to be deployed at times of low visibility, Alexei Morozov, deputy head of the Interstate Aviation Committee, told the ITAR-Tass news agency.
A RusAir representative who declined to give his name told The Associated Press that the plane was in good working order and that the weather conditions, although tricky, "weren't critical." The Tupolev 134, along with its larger sibling the Tu-154, has been the workhorse of Soviet and Russian civil aviation since the 1960s. The model that crashed was built in 1980, had a 68-person capacity and a range of about 2,000 kilometres (1,240 miles). Photographs on the ministry website showed fragments of metal strewn across a road as thick fog hung over woodland in the background. A landing gear jutting out from the ground was the only recognizable plane part. The plane was carrying 52 people, including nine crew members, Semyonova said. Russian news agencies said Russian Premier League soccer referee Vladimir Pettay and a Swedish citizen were among the victims.
The Karelia branch of the Emergencies Ministry said radio contact with the pilot was lost at 11:40 p.m. local time (7:30 p.m. EDT, 1940 GMT). The black box flight data recorders have been recovered, the news agencies said. The accident occurred on the eve of Prime Minister Vladimir Putin's planned appearance Tuesday at the Paris Air Show to support dozens of Russian firms seeking sales contracts. Russia and the other former Soviet republics have some of the world's worst air traffic safety records, according to the International Air Transport Association. Experts blame weak government controls, poor pilot training and a cost-cutting mentality for the poor safety record, leading to emergency landings being reported with alarming regularity. Polish President Lech Kaczynski was among 96 people killed when his Tu-154 crashed in heavy fog while trying to land near the western city of Smolensk in April 2010. In 2006, three crashes - two in Russia and one in Ukraine - killed more than 400 people.
Monday, June 20, 2011
Big orders help AirBus
Airbus said on Monday it had won an order for 60 narrow-body A320neo planes worth $5.1 billion at list prices from the commercial aircraft leasing and financing arm of General Electric. Analysts expect narrow-body planes, the backbone of fast-growing budget airlines, to be a key battleground for orders between Europe's Airbus and U.S. rival Boeing at the biennial air show. Airbus believes it has the upper hand with the A320neo, whose more efficient engines save airlines 15 percent in fuel costs, according to the company. Engine maker Pratt & Whitney boss David Hess said on Monday he expected an astounding amount of demand for the A320neo. Sources close to the matter said Airbus was also likely to report an order on Monday for 30 A320neos worth about $2.4 billion at list prices from Scandinavian airline SAS.
Qatar Airways said it hoped to conclude a deal this week to buy A320neo planes as well. Boeing conceded it might lose some customers while it makes a decision about whether to re-engine or redesign its competing 737 narrow-body plane, although it was confident of winning out over the longer term. It also upstaged Airbus with successes in other plane sizes and booked the first big order of the show for six 777-300ER wide-body jets worth $1.7 billion at list prices from Gulf carrier Qatar Airways. Analysts expect Middle Eastern and Asian airlines to dominate the buying as they seek to boost transport links for their booming economies. The Boeing deal came a day after Airbus unveiled plans to boost the range of its future competing A350, of which Qatar is the biggest customer.
Qatar Airways said it hoped to conclude a deal this week to buy A320neo planes as well. Boeing conceded it might lose some customers while it makes a decision about whether to re-engine or redesign its competing 737 narrow-body plane, although it was confident of winning out over the longer term. It also upstaged Airbus with successes in other plane sizes and booked the first big order of the show for six 777-300ER wide-body jets worth $1.7 billion at list prices from Gulf carrier Qatar Airways. Analysts expect Middle Eastern and Asian airlines to dominate the buying as they seek to boost transport links for their booming economies. The Boeing deal came a day after Airbus unveiled plans to boost the range of its future competing A350, of which Qatar is the biggest customer.
Sunday, June 19, 2011
Paris air show - orders soar
Airbus faced the unexpected and daunting task on Monday of delivering a marketing blow to rival Boeing and maintaining momentum for a revamped jet with its two flagship planes grounded at the Paris Air Show. The European planemaker has targeted an order surge worth tens of billions of dollars, but was left reeling as the world's largest aviation event was jinxed by a series of mishaps including a taxiway collision involving the A380 superjumbo. The right-hand wing-tip of a test plane for the world's largest jetliner, with a wingspan of almost 80 meters (yards), scraped a building at Le Bourget airport on Sunday and was withdrawn from the air show's traditional flying displays.
A second aircraft, the delayed European A400M airlifter, was also withdrawn from air display after a gearbox problem but will be allowed to perform in a flypast when French President Nicolas Sarkozy inaugurates the biennial event on Monday. The A380 collision caused dismay hours after the arrival of its new rival Boeing's elongated 747-8 superjumbo which is showing its distinctive silhouette abroad for the first time. The latest version of the legendary 747 jumbo touched down in orange and red "sunrise" livery symbolizing the importance of Asia, whose economic growth is set to dominate aviation in coming years starting with this week's air show. Industry sources expect some sales of both the A380 and 747-8 during the June 20-26 event but the main joust for market share concerns narrow-body, medium-haul 150-seat planes.
The air show could bring two record deals on successive days as Airbus tries to woo buyers for a revamped A320neo with more efficient engines, saving airlines 15 percent in fuel costs. "We clearly believe in the business case and the orders you are going to see at the show are going to be astounding," said David Hess, chief executive of engine maker Pratt & Whitney. Buyers are already camped out in Paris hotels to negotiate the final details of major deals but are aware that Airbus has staked a lot on winning a slew of orders for the A320neo at the Paris show, and some are said to be digging in their heels. A $16 billion provisional deal from IndiGo to buy 180 A320neo passenger jets, first announced in January, was mired in further negotiations that could spill beyond the air show. The deal if finalized would set a record for the number of planes in one transaction. But sources say if all goes to plan it is set to be eclipsed by a 200-plane order being fine-tuned between Airbus and Malaysia's AirAsia.
Demand for aircraft is on a sharp rebound driven by demand from Asia's rapidly growing airports and the Middle East. "Those two markets will enjoy at least one-third if not more of the demand increase for global air traffic in the next decade," said Philip Toy, a managing director at Alix Partners. The Airbus A320neo has also benefited from airline concerns about fuel costs. Boeing said on Sunday it would decide by end-year whether to upgrade its 737 with new engines from about 2016, as Airbus has done, or build an all-new jet in 2019. "They will sell hundreds but it is hard to tell what is gross and what is net, what is a conversion from an earlier order. There are myriad complications," said Teal Group analyst Richard Aboulafia said of the A320neo.
Orders are likely to include a confirmation of an $8 billion 100-plane order from leasing giant ILFC and another plane order for both Airbus and Boeing planes another big lessor, GECAS. But it could be Boeing that grabs attention on day one of the show with a sale of 777 wide-body airplanes to Qatar Airways -- a reminder that the two planemakers are battling for market share on a second front after Airbus revamped its A350. Russia and China will flex their muscles as potential rivals to Airbus and Boeing, especially during a Tuesday visit by Russian Prime Minister Vladimir Putin and some analysts expect surprise sales. But Western planemakers say it will be some time before newcomers mount a serious challenge in civil aerospace.
A second aircraft, the delayed European A400M airlifter, was also withdrawn from air display after a gearbox problem but will be allowed to perform in a flypast when French President Nicolas Sarkozy inaugurates the biennial event on Monday. The A380 collision caused dismay hours after the arrival of its new rival Boeing's elongated 747-8 superjumbo which is showing its distinctive silhouette abroad for the first time. The latest version of the legendary 747 jumbo touched down in orange and red "sunrise" livery symbolizing the importance of Asia, whose economic growth is set to dominate aviation in coming years starting with this week's air show. Industry sources expect some sales of both the A380 and 747-8 during the June 20-26 event but the main joust for market share concerns narrow-body, medium-haul 150-seat planes.
The air show could bring two record deals on successive days as Airbus tries to woo buyers for a revamped A320neo with more efficient engines, saving airlines 15 percent in fuel costs. "We clearly believe in the business case and the orders you are going to see at the show are going to be astounding," said David Hess, chief executive of engine maker Pratt & Whitney. Buyers are already camped out in Paris hotels to negotiate the final details of major deals but are aware that Airbus has staked a lot on winning a slew of orders for the A320neo at the Paris show, and some are said to be digging in their heels. A $16 billion provisional deal from IndiGo to buy 180 A320neo passenger jets, first announced in January, was mired in further negotiations that could spill beyond the air show. The deal if finalized would set a record for the number of planes in one transaction. But sources say if all goes to plan it is set to be eclipsed by a 200-plane order being fine-tuned between Airbus and Malaysia's AirAsia.
Demand for aircraft is on a sharp rebound driven by demand from Asia's rapidly growing airports and the Middle East. "Those two markets will enjoy at least one-third if not more of the demand increase for global air traffic in the next decade," said Philip Toy, a managing director at Alix Partners. The Airbus A320neo has also benefited from airline concerns about fuel costs. Boeing said on Sunday it would decide by end-year whether to upgrade its 737 with new engines from about 2016, as Airbus has done, or build an all-new jet in 2019. "They will sell hundreds but it is hard to tell what is gross and what is net, what is a conversion from an earlier order. There are myriad complications," said Teal Group analyst Richard Aboulafia said of the A320neo.
Orders are likely to include a confirmation of an $8 billion 100-plane order from leasing giant ILFC and another plane order for both Airbus and Boeing planes another big lessor, GECAS. But it could be Boeing that grabs attention on day one of the show with a sale of 777 wide-body airplanes to Qatar Airways -- a reminder that the two planemakers are battling for market share on a second front after Airbus revamped its A350. Russia and China will flex their muscles as potential rivals to Airbus and Boeing, especially during a Tuesday visit by Russian Prime Minister Vladimir Putin and some analysts expect surprise sales. But Western planemakers say it will be some time before newcomers mount a serious challenge in civil aerospace.
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