AWAS closes its first Private Placement for $350m

AWAS closes its first Private Placement for $350m

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AWAS announced today that it has closed its first Private Placement Term Loan. Aviation Finance Company (AFC) acted as Lead Arranger and Sole Book Runner, with CACIB, Goldman Sachs and Wells Fargo as Co-Leads and BNP Paribas as Manager.

The proceeds from the transaction were used to repay the existing debt on ten young narrow-body aircraft and for general corporate purposes.

This new facility rated BBB by S&P will have a 7-year term at a 4.87% coupon.Clifford Chance acted as legal counsel on behalf of AWAS and Vedder Price on behalf of AFC and the Co-Lead Arrangers.Simon Glass, AWAS Chief Financial Officer said: “ We are very pleased with the success of this Private Placement as it allowed AWAS to approach major US investors through AFC and to directly structure the transaction to fit our specific requirements while meeting the investors’ risk-return parameters”.

AFC CEO, Douglas Brennan mentioned: “We had a great result in this transaction thanks to the collaboration between the management team at AWAS, AFC and a strong group of investors, all working towards creative and innovative investment structures and results."

Source and image: AWAS

AerCap, 134 aircraft transactions completed in 3Q, 2014

Amsterdam, The Netherlands; October 8, 2014 - AerCap Holdings N.V. today announced the completion of 134 aircraft transactions during the third quarter of 2014.

Transactions completed:

• Signed lease agreements for 84 aircraft.
• Delivered 26 aircraft under contracted lease agreements.
• Purchased nine new aircraft, including five Boeing 787-8s, three Boeing 737-800s and one Airbus A321-200.

Executed sale and part-out transactions for 15 aircraft, including:

• one Airbus A300-600F, one Airbus A340-300, eight Boeing B737 classics, one Boeing B767-300ER and two MD-11s from AerCap's owned portfolio.
• one Boeing 737 classic and one Airbus A320-200 from AerCap's managed portfolio.

Signed financing transactions for $1.5 billion, including the previously announced private offering of $800 million. The total financing transactions completed year-to-date amount to $8.9 billion.

As of September 30, 2014, AerCap's portfolio consisted of approximately 1,680 aircraft that were either owned, managed, or under contract to purchase.

Source and image: AerCap

Nextant remanufactured business jets arrive in the UK

Nextant Aerospace (“Nextant”), maker of the Nextant 400XTi – the world’s only remanufactured business jet – and the forthcoming Nextant G90XT turboprop, today announced the delivery of its first 400XTi to the UK. It will be the UK’s first remanufactured aircraft and will be operated by Norwich-based SaxonAir.

This aircraft is the seventh 400XTi delivered to Europe and the first to the UK. The European 400XTi fleet has proven itself as a strong revenue generator on the European charter market with the majority of the fleet operating in excess of 80-90 hours per month. The aircraft can fly non-stop from London to any city in Europe faster than any other aircraft in its class. The spacious cabin features Wi-Fi, an espresso machine and a high tech acoustic dampening blanket that cuts ambient cabin noise by half.

“The 400XTi’s range allows our customers direct travel anywhere in Europe for considerably less than any other light jet and without sacrificing performance or comfort,” said Chris Mace, SaxonAir Group Commercial Director. “The aircraft allows us to offer the productivity benefits of business aviation to whole new customer segments.” SaxonAir, as well as operators, are also the exclusive UK sales representatives for Nextant.

As European operators focus on value for money, the value proposition of remanufacturing becomes stronger. The UK already recognizes the economic and environmental value of remanufacturing. Estimates suggest that the value of the overall remanufacturing industry in the UK is already £2.4 billion, with the potential to increase to £5.6 billion1“Remanufacturing. Towards a Resource Efficient Economy”. All-Party Parliamentary report, March 2014. and to support thousands of new skilled jobs2Next Manufacturing Revolution: Non-Labour Resource Productivity and its Potential for UK Manufacturing, July 2013.. Other benefits include reduced energy requirements, pollutant emissions, material use, and water consumption3Advanced Remanufacturing and Technology Centre website. when compared to the manufacture of new products. The trend it global: in the US remanufacturing is a $50 billion industry, growing at 15% per year4United States International Trade Commission report, October 2012..

“There has been a lot of talk in Parliament and in the press about the benefits of remanufacturing,” continued Mr. Mace. “The 400XTi is proof of concept. The 400XTi performs like a new-build aircraft by every meaningful metric but costs a fraction as much to own and operate. That delivers value both to our business and our customer’s bottom line.”

Nextant is pioneering the concept of remanufacturing for business aviation. The defining feature of the 400XTi is its value proposition. The aircraft performs better than new production aircraft at half the purchase price and with superior operating economics. Nextant serialized factory-production process captures the technological, safety and comfort benefits of modern business aircraft without the hundreds of millions of pounds it takes to develop and certify a clean-sheet design. Those savings translate into a significantly lower purchase price.

“We are very pleased with the international acceptance of the 400XTi,” said Nextant President and CEO Sean McGeough. “By the end of this year, we will have delivered 50 aircraft to 10 countries and flown in excess of 50,000 flight hours. As the All-Party Parliamentary Sustainable Resource Group is calling for the increased adoption of remanufacturing in the UK, we hope Nextant can be a good example of how remanufacturing can create real value for operators, customers and the overall economy.”

Source and image: Nextant

Gulfstream introduces new aircraft family

Gulfstream Aerospace Corp., a wholly owned subsidiary of General Dynamics today introduced an all-new family of business jets: the Gulfstream G500 and G600. The two new aircraft optimize speed, wide-cabin comfort and efficiency to offer customers best-in-class performance with advanced safety features.

Gulfstream announced the clean-sheet aircraft before a crowd of approximately 3,000 people. During the event, the first G500 taxied up under its own power, and General Dynamics chairman and CEO Phebe Novakovic revealed a nearly 70-foot/21-meter mockup of the G600.

“Today’s announcement demonstrates the power of General Dynamics’ consistent and disciplined investment in both Gulfstream’s research and development and manufacturing facilities,” said Novakovic. “The effect of that investment is manifest in the two airplanes we announced today.”

The G500 can fly 5,000 nautical miles/9,260 kilometers at Mach 0.85 or 3,800 nm/7,038 km at Mach 0.90. The G600 is capable of traveling 6,200 nm/11,482 km at Mach 0.85 or 4,800 nm/8,890 km at Mach 0.90. The maximum operating speed for both aircraft is Mach 0.925, the same speed as Gulfstream’s G650 and G650ER.

“This is another extraordinary day in the storied history of Gulfstream,” said Larry Flynn, president, Gulfstream. “I could not be more pleased to announce the next generation of Gulfstream aircraft. The G500 and G600 build upon the technology present in our G650 and our latest aircraft, the G650ER. Once again, our customers played a major role in the development and creation of these aircraft. The G500 and G600 continue the long Gulfstream tradition of being the first original equipment manufacturer to ensure an optimal combination of speed, range, wide-cabin comfort and fuel burn.”

The cabins for the G500 and G600 are distinguished by their wide cross-sections, which maximize passenger comfort and aircraft performance.

The finished cabin of each aircraft, which measure 91 inches/213 centimeters wide and 74 in/188 cm tall, provide wide-cabin comfort with considerable head room and shoulder room for passengers. Carrying up to 19 passengers each, the G500 has three living areas, and the G600 has up to four, as well as an optional crew rest. Both aircraft have forward and aft lavatories and include a full-size galley that can be located in either the forward or aft portion of the aircraft. Ample storage space is also prevalent in the baggage compartment, which has 175 cubic ft/5.0 cu m of usable volume.

Both aircraft feature an industry-leading cabin altitude of 4,850 ft/1,578 m at FL510 and 100 percent fresh air that boosts mental alertness and productivity while reducing fatigue. The quietest cabins in the industry provide an ideal environment for work-related discussion or social conversation. Large oval windows, the same size as those on the G650, allow natural light to pour into the cabins.

All-New Symmetry Flight Deck With Touchscreens And Active Control Sidesticks
Gulfstream’s revolutionary new SymmetryTM Flight Deck is the most advanced, stylish, comfortable and intuitive inbusiness aviation. The cutting-edge technology comes in the form of active control sidesticks (ACSs), integrated touchscreen controllers, a next-generation enhanced vision system (EVS) and Honeywell Primus Epic avionics.

The industry-first ACSs offer enhanced safety and situational awareness over passive sticks through tactile feedback. With electronic linking of the ACSs, the pilot and co-pilot can see and feel each other’s control inputs, which helps improve pilot coordination in the cockpit.

“The active control sidesticks enable both pilots to be consistently on the same page, enhancing safety,” said Dan Nale, senior vice president, Programs, Engineering and Test, Gulfstream. “No other business aircraft on the market has this feature.”

Adding to the pilots’ more intuitive interaction with the aircraft are 10 integrated touchscreens, which will be used for system controls, flight management, communication, checklists and monitoring weather and flight information.

The G500 and G600 incorporate a third-generation Gulfstream EVS, the Synthetic Vision-Primary Flight Display system and Head-Up Display II.

Similar to the G650 and G650ER, the G500 and G600 offer a full three-axis digital fly-by-wire system with benefits that include flight-envelope protection, stability augmentation, increased redundancy and reduced maintenance.

Source and image: Gulfstream

Airports support EU coordinated response on Ebola

In the midst of the ongoing Ebola outbreak in West Africa, rising public concerns about its potential spread and an evolving array of national responses in Europe, the European airport trade association ACI EUROPE, today underlined its support for urgent coordination between Health authorities at EU level.

Such coordination should involve clear and unequivocal communication of risk assessment as regards the possible spread of the virus in Europe. This is what the public - in particular air passengers - expect. This is also whatis needed to allay any unreasonable fear and avoid inefficient measures.

In this regard, ACI EUROPE notes that the WHO (World Health Organisation) and the ECDC (European Centre for Disease Prevention & Control) have expressed reservations about the effectiveness of temperature screening of passengers on arrival - which has beenimplemented in the US & Canada and is apparently being contemplated by some EU countries. Conversely, both organisations support exit screening of departing passengers - which began at airports in the three main affected African countries, in the last two months.

Olivier Jankovec, Director General, ACI EUROPE commented “Health security is paramount and we trust that in their meeting later this week, Health ministers will ensure that actions are properly thought through and fully coordinated across Europe and beyond. Otherwise, we risk ending up with an inefficient patchwork of measures, with negative implications for passengers and airport operations – for an unspecified period of time and with no guarantee of success.”

Source and image: ACI / ScienceInsider

Bermuda Triangle Solved? Siberia's 'End of the World' Craters Could Explain Mystery

Three craters that appeared in Siberia over the summer are thought to have been caused by huge underground gas explosions and could be 'the key' to the mystery of the Bermuda Triangle, according to scientists.

The holes – one in Taymyr peninsula and two in Yamal, known to locals in Siberia as 'the end of the world' – were the topic of much speculation, provoking suggestions that they were the product of alien invaders, meteorites, missiles or even a man made hoax.

Now scientists from the Trofimuk Institute of Petroleum-Gas Geology and Geophysics in Novosibirsk believe that they are the result of large underground gas explosions and could explain the disappearances in the infamous Bermuda Triangle.

 The Siberian Times reported, that according to researchers from the Trofimuk Institute, warm climatic conditions from above the surface, and from geological fault lines below the surface, led to a huge release of gas hydrates.

"The main element - and this is our working theory to explain the Yamal crater - was a release of gas hydrates. It turned out that there are gas hydrates both in the deep layer which on peninsula is several hundred metres down, and on the layer close to the surface," said scientist Vladimir Potapov.

Gases, methane in particular, are trapped in frozen hydrates below the permafrost (soil at or below the freezing point of water), and under some oceans, which researchers believe could be strong enough to bring down an aircraft or sink a ship, if they erupted.

"There is a theory that the Bermuda Triangle is caused by gas hydrates," said the Trofimuk Institute's deputy head, Igor Yeltsov. "They start to actively decompose with methane ice turning into gas. It happens in an avalanche-like way, like a nuclear reaction, producing huge amounts of gas. That makes the ocean heat up, and ships sink in waters which are infused with huge amounts of gas. This leads to the air becoming supersaturated with methane, creating an extremely turbulent atmosphere, leading to aircraft crashes".

 The institute is continuing its analysis of the craters, so that all hypotheses are tested and to gain a better understanding of the holes to prevent future disasters.

"This was a recce trip that would allow us set agenda for the next trip, or trips, and give us basic understanding of what could have happened," said Potapov. "We must also pay attention to areas where the same thing might potentially happen."

Bermuda Triangle: Facts And Fiction

- It is also known as the Devil's Triangle.

- The 'triangle' is a loosely defined region between Bermuda, Florida and Puerto Rico.

- The area is one of the busiest shipping lanes in the world and also one of the busiest for aircraft flying down to Florida, South America and the Caribbean.  

- In 1881, a ship called the Ellen Austin came across a derelict ship in the area and placed a crew onboard. They attempted to sail it to New York, but reports say that the vessel disappeared and then reappeared again, with no trace of the crew.

- A training flight of five torpedo bombers in 1945, vanished over the Atlantic. The disappearance is thought to be due to a navigational error which led to the aircrafts running out of fuel. However, one of the rescue craft deployed to find them also went missing with its 13 crew members.

- The incident resulting in the single biggest loss of life for the US Navy, was when the USS Cyclops set sail from Barbados, and then went missing sometime after 4 March 1918 with a crew of 309. No sign of the ship or its crew were ever found.

- One theory for the disappearances over the years is leftover technology from the lost continent of Atlantis, believed to be located beneath the waters there. Another theory is UFO kidnappings.