Avialeasing requests to declare UTAir's bankruptcy

Arbitral tribunal Khanty-Mansi Autonomous Okrug - Yugra, received a declaration of insolvency for UTAir Aviation from JSC Avialeasing. This result is due to the non-performance of UTair, with debts totalling more than $ 3.5 million. 

Airlines debt consists of the obligation to pay:

- Partial rent payments for October 2013 under the lease of the aircraft Tu-154M 

- Interest on borrowed funds during the period from 01.01.2011 to 11.02.2013, accrued in connection with the violation of the timing of lease payments under the lease of the aircraft Tu-154M

- Legal costs on one court case

Since June 2011 Airline UTair has completely ceased to fulfill the obligation to pay lease payments under operating leases of aircraft, which were signed with Avialeasing. 

Source and image: Avialeasing

Airbus may stop A380 production

Airbus may stop A380 production

Details

 

Published on Thursday, 11 December 2014 12:43

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Airbus‘ Chief Financial Officer has announced about the delays in A350 delivery as well as possible stop of A380 production. The fate of A380 shall be decided by 2018, says“Argumenty i fakty” quoting Interfax.

At the moment, Airbus considers two possible alternatives: either the A380 will be equipped with more efficient engines or it will be simply removed from production. As of November 2014, 318 Airbus A380s are already ordered, which is only a quarter of the expected demand.

Source and image: “Argumenty i fakty”

Avialeasing requests to declare UTAir's bankruptcy

Arbitral tribunal Khanty-Mansi Autonomous Okrug - Yugra, received a declaration of insolvency for UTAir Aviation from JSC Avialeasing. This result is due to the non-performance of UTair, with debts totalling more than $ 3.5 million. 

Airlines debt consists of the obligation to pay:

- Partial rent payments for October 2013 under the lease of the aircraft Tu-154M 

- Interest on borrowed funds during the period from 01.01.2011 to 11.02.2013, accrued in connection with the violation of the timing of lease payments under the lease of the aircraft Tu-154M

- Legal costs on one court case

Since June 2011 Airline UTair has completely ceased to fulfill the obligation to pay lease payments under operating leases of aircraft, which were signed with Avialeasing. 

Source and image: Avialeasing

AirAsia X places firm order for 55 A330neo

             AirAsia X, the long haul affiliate of Asia’s largest low cost airline, has placed a firm order with Airbus for 55 A330neo aircraft. This is the largest single order to date for the best-selling A330 Family and reaffirms AirAsia X’s position as the biggest A330 airline customer worldwide, having now ordered a total of 91 aircraft.

The announcement covers the firming up of a Memorandum of Understanding (MOU) for 50 A330neo signed during the Farnborough Air Show in July 2014, plus an additional five aircraft. Deliveries of the newly-ordered aircraft will begin in 2018.

“This latest deal with Airbus will enable AirAsia X to consolidate its growth rate in 2015-2017 before ramping up deliveries from 2018 onwards.” said Tan Sri Tony Fernandes, Co-Founder and Director of AirAsia X. “The A330 has proven itself to be exactly the right aircraft for our business model, combining low operating costs, long range flying capability and high levels of comfort."

Source and image: Airbus

Ground-breaking alliance to transform Europe’s airspace

The modernisation of European airspace took a major step forward today with the appointment of a unique aviation industry partnership to coordinate and synchronise €3bn worth of upgrades to the continent’s air traffic management infrastructure.

The European Commission has tasked the SESAR (Single European Sky ATM Research) Deployment Alliance, an unprecedented cross industry partnership made up of four airline groups, operators of 25 airports and 11 air traffic control providers, to plan and coordinate a wholesale modernisation of European airspace, making it fit for the 21st Century. It has been appointed to the European Commission-mandated role of SESAR Deployment Manager.

Europe’s fragmented airspace structure is inefficient and costs more to operate than equivalent regions around the world. The European Commission’s Single European Sky initiative, of which SESAR deployment is an important pillar, will improve efficiency, lower delays and raise environmental performance.

The modernisation is not only vital for the future competitiveness of Europe’s aviation industry, but for the wider health of its economy. Aviation supports 11.7 million jobs in Europe, equating to one person in every 40 people employed, generating €452 billion per annum of European GDP.

However, with air traffic forecast to increase by 50% by 2035 to approximately 14.4 million flights, Europe’s aging air traffic control technologies and infrastructure will begin to undermine its position as a leading aviation hub if nothing is done to address it.

The SESAR Deployment Manager will ensure that new technologies and solutions that have already been tested and validated through the SESAR Joint Undertaking are delivered into everyday operations across Europe, delivering significant benefits to airspace users and the environment. The SESAR Deployment Alliance, comprised of the A6 Alliance of ANSPs, the A4 airlines and the SESAR-related Deployment Airport Operators Group (SDAG), will coordinate and synchronise for an initial 6-year period the work of ensuring Europe maintains its competitive edge.

The appointment of the SESAR Deployment Alliance will be confirmed at a signing ceremony in Brussels later today. Richard Deakin, Chief Executive of UK ANSP NATS, on behalf of the SESAR Deployment Alliance, will sign the Framework Partnership Agreement with Transport Commissioner Violeta Bulc.

Source and image: NATS

SAA announces airline's 90-Day Action Plan

The acting South African Airlines (SAA) chief executive officer Nico Bezuidenhout has announced the airline's 90-Day Action Plan.

It is a rapid implementation plan intent in steering SAA back to full implementation of the Long-Term Turnaround Strategy (LTTS); the cabinet submitted plan designed to return SAA to commercial sustainability and provide even greater support for the national development agenda.

The airline has seen years of challenging financial performance with full implementation of the LTTS critical to its continued on-going operations. 

“The importance of the 90 Day Action Plan cannot be underestimated,” said Acting SAA chief executive officer Nico Bezuidenhout. “The implementation of the LTTS has stalled and an immediate intervention is required to set the implementation and the business back on track.” He added that there are major commercial challenges facing the airline and that the urgency of the matter is at the top of the newly constituted Board and SAA Executives’ agenda.   

Bezuidenhout said that the 90 Day Action Plan comprises 6 main areas of focus as approved by the newly constituted Board: 

Imediate address the airline’s liquidity position, on-going solvency and medium-term funding requirements. Amongst the interventions are:

Addressing the solvency and liquidity of the business and engage with its Shareholder and other Stakeholders to ensure going concern status is maintained. 

Immediate review of the SAA network to stem losses. 

Focus on working capital optimisation 

Renew cost compression efforts and expedite LTTS implementation that will immediately impact the Income and Cash Flow Statements.         

Immediate investigation of options to future-fund the business 

The initiation of a process to investigate and determine options for future-funding the business. This includes a process of examining the possibility of a strategic equity partner.    

Substantial focus on Governance defects and remedies 

Immediate investigation and correction of any governance failures within the business. This includes a wide-ranging review of processes and command and control structures within SAA with particular reference to the implementation of the LTTS.    

Legal and High-Level Governance 

An immediate review of all contractual burdens and governance implications or defects within the legal framework of the company. This includes the review of onerous agreements, correction thereof and other matters that impact the framing of remedial activity; the re-establishment of foundation laying for LTTS implementation within a tight governance environment.   

Reorganisation and Optimisation of Assets 

Examination of all assets in the business and reorginisation thereof in terms of the requirements of the LTTS. This includes the formation of a Holding Structure within the Group that will incorporate all areas of the current structure within a broader “Whole Of State” approach to State-Owned Aviation Assets. Further optimisation will occur in line with the approved interventions per the LTTS.      

Improved Communication 

 AA will reengineer its internal and external communication efforts to effectively communicate with all direct and indirect Stakeholders and South African citizens, particularly with reference to the implementation of the 90 Day Action Plan as well as the LTTS.          

“We are working closely with our Shareholder (the Department of Public Enterprises) and National Treasury to ensure implementation progress against the six 90 Day Action Plan interventions is highly visible and closely monitored”, said Bezuidenhout.

Fastjet sells off two ATRs as part of restructuring plan

The deal is believed to be worth a total of $21.4 million. The aircraft were previously financed by the African Export-Import Bank (Afreximbank) with the value at $23.7million leading to a $2.3 million loss on the transaction for Fastjet.

The low-cost carrier had made provisions for $2.1million in its interim accounts,
“The ATRs have not been in use since operations ceased in Ghana and Angola earlier this year. The ATRs are surplus to current business needs and have not been generating a profit for the Fastjet group, but have been accruing finance lease and other costs in both 540 Ghana and 540 Angola,” the airline said in a statement.

Fastjet is restructuring the regional operation businesses operated by Fly540 and suspended flights at both bases, in order to focus on its core Airbus A319 operations.