Nov. 27, 2017, © Leeham Co.: Time for some catch-up in the world of commercial aviation.
Scrutiny of HNA Group is intensifying as regulators in Switzerland claim the Chinese company provided false information in the takeover of a Swiss aerospace company.
Additionally, Airfinance Journal reports that at least five lessors have seen delayed lease payments from HNA Group airlines ”as HNA pumps cash from those carriers into other areas of the highly leveraged conglomerate.”
And HNA’s Hong Kong Express low-cost carrier has been barred from further expansion until it fixes problems identified by the Chinese government.
LNC reported in September that HNA was coming under credit pressure due to its high leverage.
In addition to a plethora of airline investments, HNA owns one of the world’s largest aircraft leasing companies, Avolon.
According to Reuters, a Rolls-Royce executive, Eric Schulz, will be named to succeed John Leahy as the head of Airbus sales.
Christian Scherer, a former Airbus exec who was named CEO of ATR, in which Airbus holds a 50% stake, was thought to be the front-runner. But according to Reuters, the Airbus Board of Directors wants an outside in the wake of sales bribery scandals. Scherer was not implicated in any way in the scandals, and neither was Leahy, who is retiring after 33 years with the company.
When I first saw this commercial, I thought it was for Emirates Airline first class. Not so.
Bombardier raised $1bn last week, intending to retire debt and to add cash to the balance sheet. The deal was $100m over-subscribed.
Eastern Airlines, the resurrection of the original carrier, saw its operating certificate canceled by the US Department of Transportation.
Ten Boeing 737-8 and 20 Mitsubishi MRJ90 orders go with it. The MRJ orders, which included purchase rights for 20 more, were always a puzzle.
If the commitment announced by Emirates Airline for 40 Boeing 787-10s is firmed up by the end of the year, this will be the first time since 2013 the book:bill will be 1:1.
Last year, the B:B was 0.42 and the year before 0.53.