Month: May 2020

by

Kaplanian Report – June 2020

ON THE BOEING FRONT

    Boeing to Model Potential Spread of Pathogens Inside Aircraft Cabin

Boeing appointed an executive on Thursday, May 14, to lead the company’s Confident Travel Initiative, the plan that intended to help people get back on planes.

Boeing named Mike Delany, currently vice president of digital transformation at Boeing Commercial Airplanes, to the role, which aims to “minimize air travel health risks” in a Covid-19 world.

“As air travel slowly begins to resume and restrictions ease around the globe, health and safety remain our top priorities,” said Boeing CEO Dave Calhoun in the company’s news release.  ”Mike’s deep technical expertise, leadership skills, industry knowledge and great passion for our customers make him uniquely qualified to lead this effort.”

Delany will work with Boeing customers to design and implement policies regarding facial coverings, plane cleaning, and temperature checks.  The checks will have to be completed before boarding, adding another level of complexity for travelers and airlines.

Boeing also referenced its commitment to air quality when announcing the new role.  All Boeing planes are equipped with high-efficiency particulate air, also known as HEPA, filters, ”similar to those used in hospitals and industrial clean room.”  The company says HEPA filters are better than 99.9% effective at removing particulates including viruses.

Air filtration helps, but it doesn’t eliminate the risk of disease transmission. Bacteria and viruses are viable on surfaces—such as seat-back pockets—for some time after being deposited by a cough or sneeze.

Boeing hopes modeling will predict how the virus might spread through aircraft with differing seating configurations.The company hopes to determine how variables such as coughing (with or without masks) and use of hand sanitizer might affect potential contagion.

“We are using science as opposed to anecdote…and emotionally-driven responses,” says Delany, who is also Boeing’s vice-president of digital transformation.

Source: Boeing/Barron’s/Picture Shtterstock

                      

ON THE AIRBUS FRONT

                   Airbus Opens A220 Hanger in Mobile, Alabama

Airbus celebrated a pair of milestones at its commercial aircraft production in Mobile, Alabama; announcing the official inauguration of production activities in its newly built final assembly line hanger and the start of the first U.S.-built A220 for JetBlue.

The new 270,000-sq-ft hanger, capable of accommodating assembly of both A220-100 and A220-300 aircraft, has officially opened for business after an 18-month construction project.   It houses five primary assembly stations where workers attach major airframe component assemblies for a completed aircraft in a flow line process. Airbus began producing A220 aircraft in Mobile in August 2019, using space in an existing A320 final assembly line hanger, and newly built support hangers.  With the completion of the new hanger, the Airbus production site in Alabama has doubled in size.

Airbus recently welcomed the first component assemblies destined to become an A220 for JetBlue into the new hanger.  JetBlue will become the second customer that takes an A220 from Mobile, following Delta Air Lines.  JetBlue expects to take delivery of the first U.S.-made A220 during this year’s fourth quarter.

“The team is excited to start working in their new facility and welcome a new customer,” said Airbus president of A220 USA Paul Gaskell. “It’s a strong endorsement from JetBlue in this challenging time,” said Paul Gaskell, president of A220 USA and head of A220 Program in Mobile.

Source: Airbus/Airbus Photo

         

        REGIONAL/BUSINESS JETS

                           Cessna SkyCourier Completes First Flight

The Cessna SkyCourier twin-turboprop prototype lifted off on its first flight Sunday morning May 17 from Beech Field at Textron Aviation’s east campus in Wichita. Piloted by senior test pilot Corey Eckhart and chief test pilot Aaron Tobias, the utility twin flew for two hours and 15 minutes.

“We were very pleased with how the Cessna SkyCourier performed throughout its first flight,” Eckhart said.”It was particularly impressive to see how stable the aircraft handled on takeoff and landing. The Cessna SkyCourier already displays a high level of maturity in its flight characteristics, especially for a first flight.”

“We were able to accomplish everything we wanted on this flight, and that’s an excellent start to the flight test program.”

With an initial order from FedEx for 50 copies of the high-wing airplane and options for 50 more, the SkyCourier is capable of flying 200 ktas powered by two 1,100-shp Pratt & Whitney PT6A-65SC turboprop engines driving 110-inch McCauley propellers.  It also features a Garmin G1000 NXi flight deck.

Configurable for both cage and commuter operations, the high-wing turboprop is designed to carry a payload of up to 6,000 pounds.  It is equipped with an 87-inch cargo door, a flat floor, and a nearly 70-inch tall and wide cabin to accept three standard LD3 air cargo containers.  In passenger configuration, it will have seating for up to 19 passengers, with a netted cabin area for luggage and equipment.  It also will be available in a mixed passenger/cargo combination.

Source: Textron Aviation

         Boeing Business Jets New Aircraft Development Continues 

As the 737 Max crisis rumbles on, Boeing says it is “staying close to VIP customers” on the re-engines narrow body.

Two examples of the BBJ Max 8 have been delivered green to date, and while Boeing is continuing to work on the -9 and -7 variants, it will not give a delivery timeframe for either model.

The pair were originally scheduled for certification and customer handover in 2020 and 2022 respectively.  Boeing records 14 orders for the CFM international Leap-1B-powered BBJ Max, most of them -8s- though Boeing Business Jet expects the shorter Max 7 to be the eventual favorite, owing to its 7,000nm(13000km)-range:360nm longer than the -8 and 675nm longer than the -9.

Boeing has also expanded its VIP wide body offering with the introduction in late 2018 of the BBJ777X.  The twin-aisle airliner is the updated version of the BBJ 777, of which Boeing has sold 13 examples to date.

Boeing describes the 777X as a “far superior offering”, with GE Aviation GE9X engines and a new, more advanced composite wing.

As of this month two Boeing BBJ Max 8s have been delivered.

Source: Boeing Business Jets/Picture Boeing

                                                                      

OTHER AVIATION NEWS

Air France Terminates A380 Fleet with Immediate Effect

Air France has accelerated plans to phase out its Airbus A380 fleet and will retire the aircraft immediately rather than in 2022 as previously scheduled.

Air France grounded its A380s on March 16 as the coronavirus pandemic began to take a toll on operations, before ultimately suspending the majority of its scheduled passenger flights. Air France-KLM announced on May 20 the “definitive end” of the French carrier’s Airbus A380 operations.

“Initially scheduled by the end of 2022, the phase-out of Airbus A380 fleet fits in the Air France-KLM Group fleet simplification strategy of making the fleet more competitive, by continuing its transformation with more modern, high-performance aircraft with significantly reduced environmental footprint,” the group says.

Five of the Airbus A380 aircraft in the current fleet are owned by Air France or on finance lease.  A further four are on operating lease.  Air France-KLM says the impact of the A380 phase-out write down is estimated at $547 million dollars and will be booked in the second quarter of 2020 as a non-current cost/expenses.  The fleet is powered by Engine Alliance GP7200s.

In December Air France-KLM Group said it was ordering another 10 Airbus A350-900s, which would be used to replace the company’s A380s.

Source: Air France/Picture Air France

                                Delta to Retire Its 777 Fleet

Delta Air Lines will retire its Boeing 777 fleet by the end of 2020 as the coronavirus crisis continues to disrupt global travel, creating openings for airlines to permanently streamline fleets and save money by shifting to more-efficient aircraft.  The move will leave Delta with a single type of ultra-long aircraft: Airbus A350s.

The Atlanta-based airline has 18 777s, including 10 of the long-range 777-200LR variant, according to Cirium fleets data.  Nine of these are currently operating and nine are in storage.

Delta’s first 777s joined the fleet 21 years ago, and the airline says it will replace them with its next-generation A350-900s;  which burn 21% less fuel than the Boeing jets. Delta has nine  A350s in service, four in storage and 12 on order, according to Cirium.

In past weeks the airline used 777s for cargo and repatriation flights between North American and cities in Asia,Europe and Australia.

Source: Delta Air Lines/Picture Delta Air Lines 777-200LR

           Airbus and Rolls-Royce Have Axed the E-Fan X Project

Airbus and Rolls-Royce axed the e-FanX demonstrator programs year before the experimental hybrid-electric engine airliner was supposed to fly.  The E-Fan X program was launched to explore electric aviation and involved equipping a BAE Systems Avro RJ100 with a hybrid powertrain.  But Airbus chief technology officer Grazia Vittadini says the airframer is having to “ navigate the realities” of a world impacted by the corona virus crisis, and concentrate on priorities.

She says Airbus and Rolls-Royce have as a result “jointly decided” to “bring the E-Fan X demonstrator to an end”.  “As with all ground-breaking research projects, it’s our duty to constantly evaluate and reprioritize them to ensure alignment with our ambitions,” she adds.

“These decisions are not always easy.  But they are undoubtedly necessary to stay the course.”  Vittadini points out that the effort to decarbonize the aviation industry is “no small feat”, adding: “to achieve this, we need to re-focus all our efforts on technology bricks that will take us there.”  The E-Fan X, launched in 2017, was due to carry out its maiden flight in 2021.

Source: Flightglobal

   Mitsubishi Aircraft to Close all Non-Japan Locations, Shelves M100 

Mitsubishi Aircraft is closing all non-Japan locations and moving all Spacejet activities back to its headquarters in Nagoya, Japan, above coming in response to cost pressure amid the coronavirus aerospace downturn.

As part of the consolidation to Japan, the company will halt flight testing of its 90-seat SpaceJet M100 regional jet and suspend development of its 76-seat M100, Mitsubishi Aircraft says.

Most effected outside Japan is its operations in the US Northwest.  The Mitsubishi Aircraft U.S. headquarters in Renton will close, and flight test operations in Moses Lake will cease operations.

Mitsubishi Aircraft has not announced any change to a plan under which its parent Mitsubishi Heavy Industries will acquire Bombardiers’s CRJ program for $550 million.

Source: Mitsubishi Aircraft/Picture Mitsubishi Aircraft        

      

LATEST NEWS

  • BOC Aviation has signed a purchase-and-leaseback agreement with Southwest Airlines for 10 Boeing 737 Max 8 aircraft.
  • Emirates largest operator of the Airbus A380 axes the aircraft and seen cutting deliveries.
  • Boeing the U.S. Navy received its 100th P-8A aircraft from Boeing on May 14 as the global fleet, which also includes the Indian navy and the Australian and the U.K. airfares approaches 300,000 flight hours.

  • Lauda subsidiary of Ryanair plans to cancel all Airbus deliveries and replace them with ones from Boeing.

  • American Airlines is parking its fleet of Airbus A330-200s in storage until at least 2022, part of the airline’s broader effort to downsize in response to the Covid-19 Pandemic.
  • Air Lease Corp said it would reduce capital expenditure on new jets in a move likely to restrict its-near-term growth; but still support liquidity’s it faces demands from airlines for rental relief seen as crucial to their survival.
  • United Aircraft of Russia is set to begin mating the tail and engine pylons for the first llyushin ll-96-400M, which is undergoing assembly at the Voronezh-based VSO plant.

  • Saab Aircraft has secured an SKr1.6 billion ($ 165 million) order for an undisclosed number of its Saab 2000 Erieye airborne early warning control (AEW&C) system aircraft.

Source:  Air Lease, Emirates,Saab Aircraft,American Airlines, Ryanair, United Aircraft,Boeing

 

AIR CARGO

     Alaska Airlines Transports  First Copper River Salmon to Seattle

Alaska Airlines teamed with partners to fly the first catch of salmon from Copper River to Seattle on May 15th.  The first to enjoy the fish will be over 200 healthcare workers from the Swedish Medical Center-Ballard.

The first catch of fresh, sustainable Copper River salmon arrived in Seattle on an Alaska Airlines plane.  This is not new for the airline.  Some Alaskan communities rely on Salmon exports for economic success.  In Cordova, Alaska, over 50% of local residents work in the fishing industry.  Thanks to air travel, the fish can end up in markets less than 24 hours after being pulled from the water.

Managing director of cargo for the airline, Torque Zubeck, said the following:  “ Alaska Air Cargo has been a partner of the Alaska seafood industry.  Now more than ever we provide a critical service that directly impacts the economic vitality of the region.  In Cordova alone, more than half of residents are directly involved in the fishing industry or related business.”

Chef Douglas will feature the salmon donated by seafood processors and Copper River Marketing Association to create over 200 meals for Seattle-area medical professionals.  Alaska Airlines will send pilots, flight attendants, and management employees to be part of the efforts after carrying the fish on its planes.

Source: Alaska Airlines/Picture Alaska Airlines

                      OTHER NOTEWORTHY NEWS

            The Planes in Spain Parked Neatly on the Plain

Dozens of passenger aircraft belonging to European carriers stand idled in neat lines in what has become a giant airplane parking lot amid the flat farmlands of eastern Spain.

Teruel Airport specializes in the storage and maintenance of aircraft, and business has boomed since coronaviris lockdowns globally forced airlines across Europe to ground fleets for several weeks.  There is no end in sight for many.

Planes showing the markings of commercial airlines including: British Airways, Lufthansa and Air France stand parked, buffeted by spring wind blowing across the plain.

“Teruel’s climate is dry-semi-desert with more than 250 days of sun per year,” said airport manager Alejandro Ibrahim.

“Also there is very little air traffic congestion which makes it the ideal place for plane preservation and maintenance.”

The airport currently hosts 95 wide-body aircraft, including eight of the world’s largest passenger airliners-the Airbus A380.  The number of planes arriving per week to be parked in the airport has doubled since the start of the pandemic.  The airport, owned by the local government, has not increased its rates since the beginning of the crisis, Ibrahim said.

The sudden stop to air travel has led airlines struggling to find space to store their planes. In Europe, some airlines have grounded their entire fleets and are storing their aircraft by parking them in airports, including on now-unused runways.

Source: Reuters/Picture spainsnews.com

                         

 

 

 Researched and Compiled by : 

Ed Kaplanian    Commercial Aviation Advisor  

Contact – ekaplanian@msn.com

Editor:   Lee Kaplanian  

 

 

 

 

 

 

 

 

by

The Kaplanian Report – May 2020

ON THE BOEING FRONT

                 Status of Boeing Strategy Concerning the 737 & 787

Boeing believes it will resume 737 Max deliveries in the third quarter of 2020, with chief executive David Calhoun saying the company is progressing well through certification work despite challenges posed by coronavirus.

“We currently expect the necessary regulatory approval to allow Max deliveries in the third quarter,” Calhoun says on April 29.  ”We are very confident that the process will conclude with the certification.”

Boeing is now working through what Calhoun describes as “a mountain” of documentation work.  He says the certification pace has been hampered by the coronavirus pandemic, which has forced staff to work from home.

Boeing expects to resume 737 Max production this year at “low rates”.   It does not specify initial production volumes, but says production will “gradually increase” to 31 aircraft monthly in 2021, with additional increases to follow.

As to the 787, Boeing has no immediate plan to restructure its 787 manufacturing footprint despite announcing a major cut in production.  However, Chief Executive David Calhoun says Boeing will have time to review it manufacturing strategy in the coming years, as 787 production further declines.

On April 29 Boeing announced it will reduce 787 production from 14 aircraft monthly to 10 monthly this year-end then to seven monthly by 2022.

“Certainly, both lines will be running during the initial phase of reducing production to 10 787 monthly.”  Calhoun says.  ”We have not made any decision on the 787 production locations,” he adds of production requirements after 2020.

“We will have plenty of time to figure out exactly the way to go.”

Source: Boeing

                      

ON THE AIRBUS FRONT

  Airbus Sees More Pain in Commercial Market Through 3Q 2020

Airbus does not expect to have clear visibility of full short-to medium-term impact of the Covid-19 crisis until June.  In a briefing for financial analysts the morning of April 29 to announce diminished first-quarter results for 2020, Airbus indicated that it will likely defer decisions on steps to right-size the business for another two or three months.  This will allow more time to reassess the situation of its airline customers and also get more complete guidance from governments on steps to ease lockdown restrictions.

Group CEO Guillaume Faury told analysts that the greatest Covid-19 impact so far has been on its commercial aircraft business.  Its short-term reaction has been to scale back production rates by around a third to 48 units a month, including 40 A320s, 6 A350s and 2 A330s.  The A220 production line in Canada is expected to return progressively to a monthly output rate of 4 aircraft.

“The industry is now facing the gravest crisis in its history and we have a strong focus on matching production to demand and also cash containment,” Faury said.

Earlier in April Airbus announced that it is tapping government-backed payroll protection support schemes.  This has resulted in around 3,000 being furloughed on close to full pay in France and a further 3,200 in the UK.

Airbus is deferring further decisions on possible workforce reductions until June, when it expects to have a clearer idea of reduced demand for airliners.

Source: Airbus          

        

REGIONAL/BUSINESS JETS

  Supersonic Jet Maker Aerion to Build Manufacturing Site In Florida

Supersonic business jet company Aerion will manufacture its in-development AS2 transport aircraft at a new facility in the Florida city of Melbourne, in the heart of the state’s aerospace cluster.

The company, currently based in Reno, intends this year to begin constructing in Melbourne a “global headquarters and integrated campus for research, design, build and maintenance” of the AS2, Florida governor Ron DeSantis’ office said on April 24.  Aerion’s media representative confirms the plan.

The $300 million project will create a facility called “ Aerion Park” in a region of Florida known as the “Space Coast”, says the governor.

The Company intends to begin manufacturing AS2 there in 2023, and the site will employ 675 people by 2026. 

“ Having evaluated a number of potential locations for our new home, we are excited to partner with Florida and Melbourne community to create a sustainable supersonic future,” says Aerion chief executive Tom Vice.  Aerion has said it hopes to complete first flight of the 12- passenger AS2 in 2024.

Source: Aerion/Picture Aerion          

                                                       

OTHER AVIATION NEWS

        AvioInteriors Seating Innovation Addresses Covid Concerns

Italian aircraft seat and cabin interior supplier AvioInteriors has released a concept for new seating solution designed to theoretically allow airlines to fill their middle seats amid Covid-19 concerns.  Calling it a “kit-level solution”, operators can install on existing seats to make close proximity safer, the company’s Glasssafe and Janus products feature transparencies to create an isolated volume around the passenger to avoid or minimize the spread of germs between occupants.

The Company can supply a Glasssafe retrofit kit in opaque material or with different degrees of transparency.   AvioInteriors designed the application with various executions and fixing systems that allow easy installation and removal and to allow for traditional seat-back magazine pockets and tables.

The Proposal for the second product, called Janus, features a center seat of a three-abreast layout positioned in the opposite direction, while passengers seated on the side seats, aisle, and fuselage continue to face in the forward direction.

As in the Glasssafe applications high shield that prevents breath propagation surrounds each Janus seat.  But another advantage of the Janus setup is the middle seat passenger has unobstructed access to both armrests.

If approved the AvioInteriors products would allow airlines to generate 33 percent more revenue if regulators call for middle seats to remain empty.  In fact, International Air Transport Association director general Alexandre de Juniac warned of the likelihood of higher airfares due to empty middle seat requirement.

Source: ainonline

              Southwest Delays Deliveries of 59 737 Max to Post-2021

Southwest Airlines, among the world’s top Boeing 737 Max customers, has pushed back deliveries of 59 Max aircraft in response to the travel downturn caused by the coronaviris pandemic.

Previously, Southwest anticipated receiving 107 Max jets from Boeing in 2020 and 2021, including 62 aircraft that had been scheduled for delivery in 2020 and 45 scheduled for 2021, securities filing shows.

The airline provides few details about how many 737 Max aircraft it intends to acquire in 2020 and 2021, other than saying it expects to receive less than 27 jets from Boeing this year.

Those 737 Max are aircraft Boeing manufactured for Southwest after regulators grounded the type in March 2019.  Boeing continued manufacturing the jets after grounding, storing the airliners until the grounding lifts.

Southwest is “still working on specifics of how many we want to take between now and the end of the year,” chief financial officer Tammy Romo says, during Southwest’s first-quarter earnings call on April 28.  “We have fleet flexibility.”

News of the deferrals came the day Southwest reported a first-quarter loss of$94 million, reflecting the collapse of travel demand during the pandemic.

While some Max customers have cancelled orders in recent weeks, Romo says Southwest still prefers to take new jets.”Our preference is to get new airplanes from Boeing,” she says.

Romo adds that “Max’s 14% fuel savings (compared to 737NGS) is still very meaningful and significant”, despite tumbling fuel prices, which have eroded the financial value of efficiency.

Source: Southwest/Flightglobal

                   Delta to Retire Its MD-88, MD-90 Fleets in June

Delta Air Lines will retire the McDonnell Douglas MD-88 and MD-90 aircraft earlier than previously planned, with both aircraft types exiting the fleet effective June 2020.

The accelerated retirement schedule of both aircraft is a result of the Covid-19 pandemic as the airline reduces capacity systemwide.

Delta cut its overall active fleet by about half, parking more than 600 mainline and regional aircraft in the last two months.

The 149-seat MD-88 was previously set to retire by the end of 2020.  As of February this year, prior to the coronavirus-driven fleet reduction, there were 47 MD-88s and 29 MD90s operating.  Both aircraft operated across much of Delta’s domestic network and have been workhorses for the airline.

Delta continues to evaluate its broader fleet plan and will consider additional aircraft retirement to focus on a modern, more simplified fleet going forward.

Source: World Airline News

                

LATEST NEWS

  • Airbus has backed out of a joint venture with Thai Airways to build a new MRO campus at Thailand’s U-Tapao airport.
  • El Al Israeli flag-carrier has reached a sale-and-leaseback agreement with an unidentified foreign company covering three Boeing 737-800s.
  • American Airlines sets a company cargo record on a Boeing 777-300, the flight on April 15 broke American’s all-time record for freight volume, removing 115,349 pounds(52,321 kilograms) of soybean seeds.On one of American’s cargo-only routes from Buenos Aires to Miami.

  • Lufthansa is prematurely phasing out six Airbus A380 as part of fleet cuts across the airline group.
  • Rolls-Royce says it is aiming to bring the number of Boeing 787s on the ground for Trent 1000 engine modification reasons down to fewer than 10 by the end of the second quarter.
  • Silver Air a private jet management and charter company has added a Boeing Business Jet (BBJ) with unrestricted charter access based in West Palm beach, Florida.

  • Boeing conducted a successful first flight of its second 777X airplane. Designated WH002 the second of four 777-9 flight test vehicles.

  • Qantas is putting Project Sunrise on hold, citing the impact of the Covid-19 outbreak on air travel.
  • United Airlines will sell and lease back 22 planes to Bank of China(BOC) Aviation.The deal involves six Boeing 787-9s and 16 Boeing 737-9 MAX aircraft.
  • German Government First A350 Airbus has transferred the first of three A350-900s for the federal German government to Hamburg for outfitting at the Lufthansa Technik facility on May 7.

Sources: United Airlines, Flightglobal, Boeing, Qantas, Rolls-Royce, American Airlines, Lufthansa, Airbus, El Al. 

 

AIR CARGO

                         Air Freight Market Goes Into Overdrive

Damian Brett, the editor of Air Cargo News, outlines how the freight sector has been affected by the coronavirus outbreak.

While passenger airlines have heavily reduced their services over recent weeks, the air cargo market has gone into overdrive as a result of the coronavirus pandemic.

The sector is managing a huge capacity crunch as airlines have largely stopped operating the bellyhold services which make up roughly 50% of cargo capacity.

Consultant Seabury estimates that at the end of March, cargo capacity was down by around 35% compared with the year-ago figure.

The drop-off in demand lags the capacity reductions, as a result, freight rates have taken off.

Numbers from Tac Index show that rates an services from China/Hong Kong to Europe increased by 156% from March 2 to April 6.

On China/Hong Kong to North America an increase of 90.5% as recorded during the same timeframe.

So what of the coming months? There are some early signs that the situation is easing as carriers have started to re-activate parked-up freighters aircraft, passenger aircraft are being utilized as ad hoc freighters and containership operations come into play.

Lufthansa Cargo chief executive Peter Gerber says that while it is impossible to predict what the future holds, it could be the case that there are several spikes in cargo demand over the coming months as production plants in various countries come back on line.

The prospect of this outcome was also posited by logistics and parcels giant Deutsche Post DHL in recent business performance update.

“While the development of the business situation in China has been quite promising in the last weeks, Europe and North America are still in an earlier stage of the pandemic,” DP DHL said.

Source: Air Cargo News/Picture Cargolux

 

OTHER NOTEWORTHY NEWS

Lessors see no ( one-size-fits- all ) solution to help airlines through crisis

While aircraft lessors are agreeing to a number of rental deferral requests to help airline customers struggling through the coronavirus crisis, leasing executives stress there is no one size-fits-all approach being sought by airlines.

Speaking  on May 6 during the Leasing Leaders on Aviation Crisis webinar, organized by FlightGlobal in association with IBA Group.  BOC Aviation chief executive Robert Martin notes rapid funding action- including measures from governments-means some airlines have been more interested in, for example, sale-and lease-back activity.

“Clearly a lot of our customers were immediately hit and have asked for help, but it’s not one-size-fits-all,” he says.”  Some airlines didn’t need liquidity because they already have access to liquidity in other ways.  So actually they were more interested in doing purchase-and lease-back business, and we have done $5 billion of that since Covid started.”

“As we have addressed these issues, it’s clear to us you can tell the experienced airlines who have been through something like this before,” he says.  For example, editing the speed with which North American carriers acted to improve their liquidity and that Chinese carriers tapped their domestic bond market.

Another lessor leader panelist on the webinar, chief executive of Dubai Aerospace Enterprise Firoz Tarapore, concurs that there is no single response.

In publishing its first quarter results, the lessor says that at the end of April, it had granted rent deferral requests from 25 customers – an aggregate rent totaling 5% of annual revenue. It is also evaluating rent deferral request from 33 customers, the aggregate rent deferral for which totals 10% of annual revenue.

“It’s been a deliberate and corroborative approach to make sure we carefully balance the needs of our clients and our own needs to make sure we are here for our other customers tomorrow.” said Tarapore.

Separately another aircraft lessor, Avalon, in reporting its first quarter results said it has received requests for payment relief from more than 80% of its current owned and managed customer base.

Source: Flightglobal.com/webinars

                         

Researched and Compiled by :

Ed Kaplanian    Commercial Aviation Advisor 

Contact – ekaplanian@msn.com

Editor:   Lee Kaplanian