1. NEWSWATCH
11th November 2011
Volume 11; Issue 43
In this Issue:
Kingfisher Seeks Government Bailout, 40
More Flights Cancelled
 Kingfisher Seeks
Government Beleaguered Kingfisher Airlines today sought government
Bailout, 40 More help for a bailout on a day when its shares crashed to a
Flights Cancelled record low amid continuing debt fears, as it cancelled
more flights for the fifth straight day with 40 flights being
 China's MA600 to
Make International withdrawn.
Debut With his cash-strapped airline hitting an air pocket, Owner
 Aeroflot to buy Vijay Mallya made an urgent request to Finance Minister
A320s, SSJ-100s Pranab Mukherjee and Civil Aviation Minister Vayalar Ravi
for Regionals to help his carrier with infusion of funds through banks at
low interest rates, besides other concessions in line with
 Airbus Halts
Production of what Air India was getting, sources said today.
Long-Haul A340 The stocks of the airline plunged to an all-time low to 19.1
Aircraft per cent in early trading on the Bombay Stock Exchange to
 Airbus to Delay a record low before recovering to 9.45 per cent.
A350 By as Much Hundreds of passengers were inconvenienced after the
as Six Months
private airline went on a cancellation spree amid reports
 1st Airplane of of travel agents not taking bookings. With today's
Peach Aviation cancellation of 40 flights, at least 160 scheduled flights
Arrives at Kansai were not operated since Monday.
Airport
Observing that Kingfisher was "facing a problem", Ravi said
 ILFC Secures Sale- Mallya had met him and explained the problem.
Leaseback Deal
With American "I will also talk to the Finance Minister ... (so that) some
Airlines assistance from the lead banks is granted. ... Closing down
of flights affects the travelling public.”
 Qatar Airways
Hints at ‘Major’ "Whether it is private or public sector is immaterial. It is
Order For Airshow an Indian carrier. He could not get financial assistance, so
 CIT Announces
he talked to me," Ravi told reporters here.
Order With However, there was no official word immediately on
Embraer For Up to whether any step was being taken on Mallya's request,
30 E-Jets
which he made earlier this week.
 IBA Group News Ravi's comments drew sharp criticism from BJP leader and
former Finance Minister Yashwant Sinha, who said there
was "no case for a government bailout for Kingfisher. We
IBA Group Ltd. cannot support such a step."
IBA House
7 The Crescent Congress spokesperson Manish Tewari said it remains to be
Leatherhead, Surrey
KT22 8DY
seen whether in a market economy the government will
United Kingdom walk the extra mile to bail out a private company or
Tel: +44 (0) 1372 224488 should allow the shake-out to take place and the fittest to
Fax: +44 (0) 1372 224489
www.ibagroup.com
survive".
Source: deccanherald.com – 11th November 2011
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2. NEWSWATCH
11th November 2011
Volume 11; Issue 43
China's MA600 to Make International Debut
China-made turboprop airliner Modern Ark 600 (MA600) will IBA’s Comment:
make its international debut during the upcoming Dubai “The MA600 is
Airshow, China News Service reported on Wednesday.
another example
The 60-seat plane arrived in Dubai on November 9th and will
of a very capable
make 8-minute demonstration flights every day from November
13th to 17th during the air show. regional aircraft
The MA600, manufactured by Aviation Industry Corp of China to compete with
(AVIC), is an improved version of the MA60. It is powered by existing
two Pratt & Whitney Canada PW127J turboprops with an
economical cruise speed of 430 kilometers per hour. The Western-built
maximum fuel range of the plane is 2,600 kilometers, according models, which
to AVIC's official website.
has failed to
"MA600 will fly with a new look during the air show and
demonstrate its maneuverability," Chen Guanjun, head of secure sufficient
AVIC's international business department, told China News orders to
Service.
threaten the
The turboprop has accumulated 16 orders, including two from
current market
the Laos government.
players – in this
Chen said AVIC plans to show models of the L-15 training
aircraft, Z-9 helicopter and SD10A air-to-air missile at its 200- case, ATR and
square-meter exhibition booth, with an L-15 flight simulator for Bombardier. ATR
interacting with visitors, according to the report.
has secured an
Another focus of the Dubai Airshow is the JF-17 fighter jet of
the Pakistan Air Force (PAF). An earlier Xinhua report impressive 145
confirmed that three of PAF's China-made JF-17s will orders in 2011”
participate in the air show.
– David Rushe
The Dubai Airshow, which happens every two years, is believed
to be the most influential air show in the Middle East.
Source: chinadaily.com.cn – 11th November 2011
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3. NEWSWATCH
11th November 2011
Volume 11; Issue 43
Aeroflot to Buy A320s, SSJ-100s for
Regionals
Russia's flagship airline Aeroflot will buy Airbus A320s and
Sukhoi Superjet 100s to upgrade its regional subsidiaries' fleets, “Aeroflot has
Aeroflot General Director Vitaly Savelyev said today.
also ordered 30
"Aeroflot prefers Airbus A320s. These planes, which will be
used initially on international routes, will partly renew the SSJ-100s to
fleets of our regional daughter companies," Savelyev said.
replace its
Aeroflot has also ordered 30 SSJ-100s to replace its existing
Tu-134s on internal routes. This year the company is to be existing Tu-134s
supplied with 10 planes, with 12 planes in 2012 and eight on internal
planes in 2013.
routes. This year
The company plans to use SSJ-100s mainly on international
routes, but they may also serve regional routes. the company is
Meanwhile Russian mid-sized carrier Angara airlines, which to be supplied
operates mainly in Siberia, is to lease 10 short-haul Antonov with 10 planes,
An-148 passenger planes, the government of the Irkutsk region,
where Angara's owner is based, said on its website on Friday. with 12 planes in
"A preliminary agreement to lease An-148s for 15 years has 2012 and eight
been signed. The airline is likely to get three planes at the planes in 2013.”
beginning of next year and will start using them in the second
quarter. After that Angara will get another seven planes in the
next two years," the Irkutsk administration said.
The new planes will replace An-24s and An-26s.
Source: en.ria.ru – 11th November 2011
Airbus Halts Production of Long-Haul A340
“"We have
Aircraft
accepted
European planemaker Airbus said on Thursday it was
abandoning production of its A340 long-haul four-engine reality. We have
aircraft, which failed to compete with Boeing's 777. not sold any
"We have accepted reality. We have not sold any A340s for A340s for nearly
nearly two years," Airbus Finance Director Hans Peter Ring said
during a presentation on the third-quarter results of Airbus two years,"
parent company EADS. -Hans Peter
The abandoning of the programme will allow Airbus to write Ring, Airbus
back into its books a provision of 192 million euros ($261
Finance Director
million) it had made on the programme.
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4. NEWSWATCH
11th November 2011
Volume 11; Issue 43
The A340 first flew in April 1992 and in 1993 it scored a record
for the longest non-stop flight, between Paris and Auckland,
New Zealand.
The Boeing 777 was launched two years later and had the
same capacity, but with only two engines it was more fuel-
efficient.
Source: brecorder.com – 11th November 2011
Airbus to Delay A350 By as Much as Six
Months
Airbus will delay the delivery of its A350 Extra Wide Body jet
by as much as six months, the company said on Thursday. “Airbus will
EADS, the parent company of Airbus, announced the schedule start final
slide in its third quarter earnings report. The company took a
assembly of its
$273 million charge in the third quarter for the A350 delay.
A350XWB in the
Airbus likely won't hand over its first A350XWB until 2014,
about six months later than previously expected. first quarter of
The delay will help "to ensure that the aircraft is mature and 2012. After the
trouble-free when delivered," Hans Peter Ring, Airbus' Chief
aircraft is built,
Financial Officer, said in a conference call with reporters.
it will enter
Like Boeing's 787, Airbus' A350 is a mostly composite aircraft.
The use of new technology and materials, as well as its flight testing and
dependence on a global supply chain, forced Boeing to delay then is
its 787 by more than three years. Boeing delivered the first
Dreamliner jet in September. scheduled for its
Airbus' A350 will challenge Boeing's 777 as well as force Boeing first delivery in
to decide about developing a larger version of the 787. the first half of
Airbus will start final assembly of its A350XWB in the first 2014.”
quarter of 2012. After the aircraft is built, it will enter flight
testing and then is scheduled for its first delivery in the first
half of 2014.
"It's not about simply meeting deadlines," Ring said. "We won't
move to the next phase without finishing the previous one."
Source: heraldnet.com – 10th November 2011
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5. NEWSWATCH
11th November 2011
Volume 11; Issue 43
1st Airplane of Peach Aviation Arrives at
Kansai Airport
The first aircraft of Japanese low-cost carrier Peach Aviation
Ltd. arrived at Kansai International Airport, Osaka Prefecture, “The Airbus
on Thursday, prior to the launch of its services in March.
A320, coloured
The Airbus A320, coloured white, purple and pink, will be used
for crew training at its home airport until its inaugural flight, white, purple
the budget carrier partially owned by All Nippon Airways Co. and pink, will be
said.
used for crew
Peach Aviation, which plans to fly between Japanese cities and
also between Japan and South Korea, will introduce a total of training at its
10 A320s. The airline also said it will use a model fitted with home airport
narrower seats than usual passenger planes to accommodate
until its
more passengers and no in-seat movie screens to cut costs.
inaugural flight”
Peach Aviation CEO Shinichi Inoue released a comment saying,
"We would like to thank our fans and supporters for helping us
reach this point and we are extremely happy about the arrival
of Peach Aviation's first aircraft."
Source: mdn.mainichi.jp – 10th November 2011
ILFC Secures Sale-Leaseback Deal With
IBA’s Comment:
American Airlines
“The operators
International Lease Finance Corporation (ILFC), a wholly owned certainly hold
subsidiary of American International Group, Inc., announced the upper hand
today that it has completed an agreement with American
these days in
Airlines to purchase and leaseback 15 Boeing 737-800 Next
terms of sale
Generation aircraft. The agreement covers certain aircraft that
American had previously ordered and that have been delivered and leaseback
or are scheduled for delivery during 2012. agreements,
particularly in
“ILFC is pleased to be able to support American Airlines in this
strategic manner,” ILFC Chief Executive Officer Henri Courpron the crowded
commented. “Our ability to work with one of the largest space for
airlines in the world to execute fleet management decisions is A320/737NG
core to our business initiatives.” deals. It is likely
“We are pleased to establish a strategic relationship with that AA have
ILFC,” said AMR Chief Financial Officer Bella Goren. “This secured a very
transaction, which will provide financing for 15 of our new favourable deal-
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6. NEWSWATCH
11th November 2011
Volume 11; Issue 43
737-800 aircraft, is an effective means for diversifying our
funding sources and we look forward to a long-term partnership despite its
with ILFC.” questionable
The Boeing 737 aircraft family has been widely received in the financial state”
market. Earlier this week, ILFC took delivery of its 425th 737 – David Rushe
aircraft, which was delivered to Korean Air and represented the
690th Boeing aircraft to be delivered to ILFC in its nearly 40-
year relationship with the manufacturer. ILFC is Boeing’s
largest lessor customer and Boeing’s fourth largest customer
overall including airlines.
Source: tradershuddle.com – 9th November 2011
Qatar Airways Hints at ‘Major’ Order For
Airshow
State-backed Qatar Airways has said it expects to make a
“major” announcement at next week’s Dubai Airshow, a
spokesperson for the carrier said on Tuesday. “The Gulf airline
The Gulf airline already has orders outstanding for more than already has
200 aircraft with a value in excess of $40bn at list prices, and orders
said the announcement would be in line with its rapid
outstanding for
expansion plans.
more than 200
“Qatar Airways will have a formidable presence at the Dubai
aircraft with a
Airshow,” a spokesperson for the airline said in a statement to
Qatar News Agency. The carrier will make a “major value in excess
announcement” at the event, the spokesperson added. of $40bn at list
CEO Akbar Al Baker in October said the carrier will make a prices, and said
decision on the Airbus A320neo at the event, after failing to the
sign a deal for the plane at the Paris Air Show in June. announcement
The carrier has already signed a deal for the planemaker’s would be in line
A380, but the size and value of the order will not be disclosed with its rapid
until the Dubai show, which begins on November 13th.
expansion
Qatar Airways is one of the world’s largest buyers of new plans.”
aircraft, with orders for 80 Airbus A350s, six Boeing 777-300ER
and five Airbus A380s, among others.
The Doha-based carrier operates about 100 aircraft to more
than 100 destinations worldwide, and plans to serve more than
120 routes by 2013 with a fleet exceeding 120 planes.
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7. NEWSWATCH
11th November 2011
Volume 11; Issue 43
Emirates Airline, Dubai’s flagship carrier, has also said it is
likely to place orders for new planes at the show. The largest
international carrier has around 199 planes on order, scheduled
for delivery through to 2019, but has said it may expand its
fleet further.
“I would say it’s more positive that we might sign something,”
Sheikh Ahmed bin Saeed Al Maktoum told reporters in
September.
Source: Claire Ferris-Lay, arabianbusiness.com – 8th November 2011
CIT Announces Order With Embraer For Up
to 30 E-Jets
CIT Group Inc., a global leader in transportation finance, today “After more
announced that CIT Aerospace placed an order for up to 30 than 1,000 firm
Embraer 190 and/or Embraer 195 jets, ten of which are firm. orders, spread
Deliveries are scheduled through 2015.
over 60
“We are pleased to announce our first direct order with
operators in 40
Embraer for the E190/E195 aircraft, which will enable CIT
Aerospace to offer an even more diverse set of products to its countries, this
customers,” said C. Jeffrey Knittel, President of Transportation investment by
Finance at CIT. “This order allows CIT Aerospace to continue to CIT is further
maintain one of the youngest and most technologically
advanced fleets in the industry and will help us meet our confirmation
customers’ increased demand for this size aircraft.” that the E-Jets
"Embraer is very pleased to have such an important lessor as have achieved a
CIT Aerospace join the E-Jet program, said Paulo Cesar de high level of
Souza e Silva, Embraer President, Commercial Aviation. “After
attractiveness
more than 1,000 firm orders, spread over 60 operators in 40
countries, this investment by CIT is further confirmation that for the top-tier
the E-Jets have achieved a high level of attractiveness for the investor
top-tier investor community." community."
CIT owns or finances a fleet of approximately 300 commercial
aircraft. With this new order, the Company now has a total
order book of 172 aircraft scheduled for delivery through 2019.
Source: thestreet.com – 7th November 2011
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8. NEWSWATCH
11th November 2011
Volume 11; Issue 43
IBA Group News
Press Releases & Presentations can be viewed in the News & Views section of our website, www.ibagroup.com
Conference Dates
20th – 22nd November 2011 – 43rd African Airlines Association Annual General Assembly, Marrakech - Ben Jacques and
Adrian Lee will attend
1st – 2nd December 2011 – Aviation Investors Summit, London – Phil Seymour and Owen Geach will be speaking
24th – 26th January 2012 – Euromoney 14th Annual International Aviation Finance Conference, Dublin – IBA is sponsoring
and will be speaking - IBA’s Phil Seymour, Owen Geach, Steve Fisk and Dr Stuart Hatcher will attend
7th - 8th February 2012 – 2nd Annual International Corporate Jet and Helicopter Finance Conferrence, London – Phil
Seymour, Owen Geach, Ben Jacques and Mark Wooller will attend
Phil Seymour’s Notes on the Week
What a few weeks we have had: New Greek leadership, new Italian leadership; a Eurozone that is struggling to
provide a robust policy, and is creating a ripple around the World, the so called Arab Spring has continued into the
Winter, new Libyan leadership, etc, etc.
Volatile airline results this week: Asiana posting a loss, Thai improving and Air France KLM just about squeezing a
profit, but 95% down on the same period, mostly due to cargo traffic down and fuel price increases. To cap it all
EADS will cease production of the A340! What is the World coming to?!
I will spend the weekend rummaging through various cupboards and drawers as I am pretty sure I still have some
Greek Drachmas and Italian Lire hidden away somewhere, looks like I might be able to spend it after all.
Phil
Publications – 2011 Editions
Please contact marketing@ibagroup.com for more information.
Aircraft Values Book Published in February 2011 & August 2011 £660 per year
Lease Rate Digest Published in February 2011 & August 2011 £360 per year
Engine Values Book Published in April 2011 £650 per year
Maintenance Cost Journal Published Quarterly £200 per year
“Newswatch” is a free weekly round-up collated by IBA Group Ltd.
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party, with regard to the information and views contained.
As a leading independent aviation consultancy, IBA Group Ltd. offers technical advice, commercial business
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Compiled & Edited by Mike Yeomans
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