Embraer introduces Best-in-Class 5,800-feet Cabin Altitude on Legacy

Embraer has announced the enhancement of the flight experience aboard its Legacy 450 and Legacy 500 mid-cabin business jets. The cabin altitude of these two revolutionary aircraft is already considered among the lowest on the market, but the maximum cabin altitude has been further reduced to a best-in-class 5,800 ft (1.768 m).

“With our focus on value, the Legacy 450 and Legacy 500 are setting new standards for the midsize cabin segments,” said Michael Amalfitano, Embraer Executive Jets. “These aircraft are beautifully designed and brilliantly engineered, and they will continue to elevate the experience that we provide our customers.”

The current maximum cabin altitude of the Legacy 450 and Legacy 500 is 6,000 ft (1.828 m) when flying at 45,000 ft (13.716 m). The cabin pressurisation differential was increased from 9.3 psi to 9.73 psi to reduce the maximum cabin altitude to 5,800 ft. The aircraft’s environmental control system also preserves a sea-level cabin altitude while flying under 27,050 ft (8.245 m).

Launched in 2008, the Legacy 500 and Legacy 450 entered the market in 2014 and 2015, respectively. Deliveries of these aircraft with new the cabin altitude enhancement will commence in the first quarter of 2018 when the upgrade also becomes available to the installed fleet.

Boeing, CDB Aviation finalise order for 52 737 MAXs and eight 787 Dreamliners

Boeing and CDB Aviation have finalised an order for 42 737 MAX 8s, 10 737 MAX 10s and eight 787-9 Dreamliners.

The order, valued at $7.4 billion at current list prices, was announced as a Memorandum of Understanding (MOU) at the 2017 Paris Air Show. The order includes a conversion of six 737 MAX 8 orders, to the 737 MAX 10.

CDB Aviation, one of the largest and most influential Chinese-owned aviation leasing companies, is part of the launch customer group for the 737 MAX 10, the newest member of Boeing's 737 MAX family.

"The 737 MAX and the 787 Dreamliner are some of the most advanced, most fuel-efficient airplanes in the world today," said CDB Aviation President and Chief Executive Officer Peter Chang. "We're confident that the reliability, efficiency and superior economics of the MAX and Dreamliner families will be very appealing to our customers."

Based in Dublin, Ireland, CDB Aviation operates as a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., LTD (CDB Leasing) (HKEX stock code:1606) and features a committed fleet of over 300 aircraft.

"CDB Aviation is a leader in the leasing market and we're excited the 737 MAX and 787 Dreamliner will be the pillars of its growing fleet," said Boeing Commercial Airplanes President & CEO Kevin McAllister.

The 737 MAX family is the fastest-selling airplane in Boeing history with over 4,000 orders from 93 customers worldwide. Boeing has delivered more than 30 737 MAX airplanes this year.

"Being one of the launch customers of the MAX 10 and bringing the MAX family's orders over the 4,000 milestone further demonstrates CDB Aviation's steadfast efforts to advance its global mission and deliver the latest technology aircraft to current and prospective customers," added Chang. 

Dubai Airshow: EgyptAir signs with Bombardier for up to 24 CS300s

Bombardier Commercial Aircraft announced yesterday at the Dubai Airshow, that it has signed a letter of intent (LoI) for up to 24 CS300 aircraft with EgyptAir Holding Company, of Cairo.

This includes 12 CS300 aircraft with purchase rights for an additional 12 aircraft.

‎Based on the list price of the CS300 airliner, a firm-order contract would be valued at approximately US$1.1 billion. Should EgyptAir also exercise the 12 purchase rights for CS300 aircraft, the contract value would increase to nearly US$2.2 billion.‎

In the presence of His Excellency Minister of Civil Aviation of Egypt Mr. Sherif Fathi, a press conference was held at the Dubai Airshow where Safwat Musallam, Chairman and CEO of EgyptAir Holding Company and Fred Cromer, President, Bombardier Commercial Aircraft celebrated the signature of the letter of intent, which opens a new chapter in the relationship between the two companies.

“It is our pleasure to have this new partnership with Bombardier, which came as a continuation of our fleet modernisation strategy. We undertook a thorough evaluation process of our fleet and realised that the CS300 would fit perfectly into our business plans and growth strategy,” said Safwat Musallam.

“We selected the C Series aircraft because its excellent range will allow us to best serve domestic and regional destinations, including neighbouring Arab cities, the Middle East as well as several European destinations. This is in addition to the CS300 aircraft’s exceptional economics and outstanding cabin. We look forward to expanding our network with the CS300 and we are happy to see that the partnership announced with Airbus will bring added support to the C Series programme.”

“We’re thrilled that EgyptAir selected the CS300 aircraft to renew its fleet,” said Fred Cromer. “Bombardier’s 20-year market outlook foresees demand for 450 airplanes in the 60- to 150-seat category for the region and this LoI confirms the need for right-sized aircraft in the Middle East. We are confident that our small single-aisle C Series is ideally-suited to serve the hot temperature environments of the region and will undoubtedly provide performance and economics that will drive higher profitability.”

Dubai Airshow: Air Sénégal orders two A330neo

Air Sénégal, the national carrier of Senegal has signed a Memorandum of Understanding (MoU) for two A330neo aircraft, which is the new re-engined version of the A330 widebody airliner.

The agreement makes Air Sénégal the first airline in Africa to select the A330neo and was announced during a signing ceremony at the Dubai Airshow in the presence of Maimouna Ndoye Seck, Minister of Air transport and Development of Airport Infrastructure, Senegal. 

Air Senegal will launch operations in 2018, the airline plans to use the A330neo to develop its medium and long-haul network with the aircraft offering cutting-edge technology along with more efficient operations.

Philippe Bohn, CEO Air Sénégal said “Aviation is a catalyst for economic development and this purchase demonstrates Senegal’s ambitions for economic growth in line with the country’s strategy to accelerate progress towards emergence (Plan Emerging Senegal). The A330neo has proven itself to be the right aircraft, combining low operating costs, long range flying capability and high levels of comfort. We are looking forward to launch operations and offer our customers best-in-class service”

"We are very pleased to welcome Air Sénégal among our A330neo customers. The A330neo offers the latest in fuel saving technologies combined with best-in-class comfort, reliability and operational efficiency. The A330 is the ideal choice for Air Sénégal to build its network and become West Africa’s fastest growing airline," said John Leahy, Chief Operating Officer Customers, Airbus Commercial Aircraft.

Boeing signs off on a $1.3 billion deal at Dubai Airshow

The order should see the aircraft delivered in 2018 and 2019. Two of the four planes were a firming of a commitment announced in June.

Speaking at the Dubai Airshow Tuesday, the Chief Executive of Ethiopian Airlines, Tewolde Gebremariam, said the deal underlined the vitality of air traffic in North Africa.

"Ours is a fast growing region and we expect growth. There is enough demand for us and competitors," he said.

Gebremariam added his airline was also still in discussions to buy Boeing's long-range 777X, due to enter service in 2019.

The chief executive also said the airline is looking to replace its mid-size jet fleet and would potentially commit to between 10 and 20 of Boeing's New Midsize Airplane (NMA) that the U.S. manufacturer announced earlier this year.

The NMA is to be a twin-aisle plane with a capacity for 220 to 270 passengers and, if it achieves its program target, would enter service in 2025.

The Ethiopian deal is adding to Boeing's success on what is turning out to be a relatively muted airshow in terms of orders. On Sunday, Dubai's Emirates airline unveiled a provisional $15.1 billion order for 40 of Boeing's 787-10 jetliners.

Then on Monday, Boeing and Kuwait-based ALAFCO Aviation Lease and Finance Company (ALAFCO) finalized an order for 20 additional 737 MAX 8s.

That deal, valued at $2.2 billion at current list prices, was first announced as a commitment at the Paris Airshow in June.

Kenya Airways completes $2 bln debt restructuring

The airline’s top shareholder, the Kenyan government, and 11 local lenders converted the bulk of their debts into shares, helping to relieve cash flow pressure.

“This has been a $2 billion restructuring,” Mbuvi Ngunze, the former Kenya Airways CEO who has been advising on the transaction since June, told Reuters.

That figure includes full commitments to financiers and operating aircraft leasing companies, which are not normally reflected in the balance sheet, he said.

As part of its assistance to the company’s revival efforts, the government also offered contingent guarantees for $750 million of the airline’s debt for 10 years.

“We will pay less now to allow us a bit of time to reshape the business to pay a bit more on the tail end,” Ngunze said, referring to the debt restructuring.

Kenya Airways, which is part owned by Air France KLM, posted the country’s biggest ever annual corporate loss of 26 billion shillings ($251 million) in its 2016 financial year, hit by a slump in travel and high financing costs after buying new Boeing planes.

The losses pushed the company into negative equity of 45 billion shillings in its financial year to the end of March.

Ngunze said he expects that to move into positive territory next year after the restructuring.

On Wednesday the Nairobi Securities Exchange suspended trading of Kenya Airways shares for two weeks to allow the listing of additional shares created in the restructuring.

The financial restructuring diluted all existing shareholders by 95 percent.

Kenya Airways is set to brief investors on the first half of its financial year on Friday.

($1 = 103.7000 Kenyan shillings)

Eleven banks to own 38.1pc stake in @KenyaAirways

Eleven local banks are set to be the second largest shareholders of national carrier Kenya Airways after forming a special purpose vehicle to acquire shares in the airline.

As part of a bold restructuring plan, the banks will convert part of loans issued to Kenya Airways to acquire a 38.1 percent stake.

This follows a deal proposed by the airline that will see the banks convert $167.24 million (Sh17.3 billion) of the $217.2 million (Sh22.5 billion) in loans issued to the airline.

The shares will be owned by a new special purpose vehicle called KQ Lenders Company managed by Minerva Fiduciary Services from Mauritius.

The local banks in the debt conversion deal include KCB Group, Commercial Bank of Africa, Co-operative Bank and Equity.

Other banks include I&M Bank, Jamii Bora, NIC Bank, Ecobank, National Bank, Diamond Trust Bank and Chase Bank.

As part of the deal the banks will sign a new loan agreement for the outstanding loan amount of $50 million to acquire more shares in future.

“The effect of the mandatorily convertible loan agreement is the issuance of ordinary shares to the KQ Lenders Co at a future date in accordance with terms of the agreement,” Kenya Airways said in notice in the dailies.

Kenya Airways has been under huge financial strain over the years, reporting losses for five consecutive years.

The airline shrunk is full year to March loss by 60 percent to Sh10.2 billion with the debt restructuring plan expected to give it financial headroom to bounce back.

The government will also acquire an additional 19.1 percent shareholding in Kenya Airways, pushing its total shareholding to 48.9 percent as part of restructuring of government loans advanced to the airline

The treasury had issued two loans to Kenya Airways worth Sh4.2 billion and $197.2 million (Sh20.4 billion) respectively.

Both the lenders and the government have applied for an exemption from a Capital Markets Authority (CMA) requirement to make a takeover offer.

Transport Cabinet Secretary James Macharia is set to issue further details of the deal.