ARC NEWS
Air Senegal in legal dispute over A330neo rent payments
August 26, 2025
Air Senegal is being pursued through the UK High Court for alleged non-payment of rent relating to two Airbus A330neos. In a skeleton argument submitted to the UK Commercial Court in early August, an entity called Casamance and Wilmington Trust assert that the African carrier has been in default on lease payments relating to two A330-900s (MSNs 1910 and 1923) which they had leased to Air Senegal since 2020. These arrears began in mid-2024 and as of 17 June, are alleged to have totalled over €20.7 million ($24 million). Casamance purchased the two aircraft from Air Senegal in 2020 and immediately leased them back to the airline. Casamance financed its acquisition in part by entering into a loan agreement which was arranged and facilitated by Santander and guaranteed by export credit agencies, including Bpifrance assurance export. Wilmington was made security trustee in the transactions. Following demands for payment of outstanding rent made in June, Santander issued a notice terminating the lease of MSNs 1910 and 1923 and seeking both payment of the outstanding €20.7 million and a €115 million final down payment owed against the jets. Casamance and Wilmington allege that Air Senegal has made part-payment of €12 million and that a "substantial amount therefore remains outstanding". The document states that an "interim prohibitory injunction" was granted at an "ex-parte hearing" on 14 July 2025 that restricted Air Senegal from removing MSN 1910 and its engines, which were previously installed on MSN 1923, from their current location in Rome. Also in July, the claimants sought the return of the aircraft. The claimants additionally sought a mandatory injunction preventing Air Senegal from flying MSN 1910, with the engines of MSN 1923 installed on it, out of Rome where the aircraft had been undergoing maintenance, amid their efforts to seek the jet's redelivery. In a counter skeleton argument submitted on the same day, Air Senegal contends that to date it has paid $93 million towards the purchase of the aircraft in finance lease repayments. The airline denies the arguments for a mandatory injunction to impound the aircraft and argues for its continued use. Air Senegal urges that the case be mediated by the Hague Court of Arbitration for Aviation rather than through UK courts.


Korean Air to buy 103 Boeing jets, 19 spare engines
August 26, 2025
Korean Air has inked a memorandum of understanding (MoU) to order 103 Boeing aircraft, comprising 20 777-9s, 25 787-10s, 50 737-10s and eight 777-8 Freighters, scheduled for delivery through the end of 2030. The carrier has also agreed an MoU to acquire 11 and eight spare engines from GE Aerospace and CFM International, respectively, while GE will provide engine maintenance services for 28 aircraft over 20 years. Korean Air has valued the upcoming aircraft and spare engine orders at $36.2 billion and $690 million, respectively, with the engine maintenance contract valued at $13 billion, according to a 25 August press release. The order comes on the heels of the carrier's order for 20 777-9s and 20 787-10s in March. The carrier says the aircraft acquisition is part of its "proactive measure to support Korean Air's long-term growth following its integration with Asiana Airlines", as it grapples with ongoing delivery delays. "Acquiring these next-generation aircraft is the core of our fleet modernisation strategy, delivering significant gains in fuel efficiency and enhancing the passenger experience across our global network," says Walter Cho, chairman and chief executive of Korean Air. "This investment is also a critical enabler for our future as a merged airline with Asiana, to ensure that our combined carrier is one of the most competitive airlines in the industry." As part of its strategy, Korean Air's long-term fleet will be restructured into five aircraft types comprising 777s, 787s, 787s and Airbus A350s and A321neos. Korean Air currently operates nine Airbus and Boeing aircraft types, Cirium fleets data shows. The MoUs were signed on the back of a high-level visit between the leaders of South Korea and the USA in Washington, with the carrier calling the deal "a strategic choice to strengthen Korean Air’s partnership with the US aviation industry". "As Korea's leading flag carrier, Korean Air will continue to serve as a vital bridge between the two countries. This strategic investment in the US market will further strengthen the airline’s operational capabilities and global competitiveness, and foster robust commercial ties that will drive sustained growth," it adds. The order, when finalised, will bring the carrier's Boeing orderbook to 175 aircraft, while it also has 40 A321neos, 27 A350-1000s and four A350-900s on order.


​Latvia to match Lufthansa's investment in Air Baltic
August 22, 2025
The Latvian government has agreed to pump €14 million ($16.3 million) into Air Baltic to match the commitment made by Lufthansa Group, securing its position as a strategic investor and smoothing its journey towards an IPO. Participation by the Latvian state, which owns 98% of Air Baltic, will take place alongside the German carrier to ensure that "the state retains its strategic participation in the company," the airline says. Lufthansa Group said in January it would invest €14 million in exchange for a 10% stake in Air Baltic, commenting that the funds would cement a wet-lease partnership but did not reflect a desire to consolidate it into the wider group. The Latvian government says it "made the decision" to attract Lufthansa as a strategic partner a month earlier. "Having one of the industry leaders become a strategic investor in Air Baltic increases the value of our national airline, confirms its leading market position, and strengthens the company’s path toward an IPO," explains Latvian transport minister Atis Svinka. "This will help attract other investors, as it demonstrates that Air Baltic’s business model is sustainable." Air Baltic expects Lufthansa’s investment in the company to be completed by the end of August. The company notes that Estonian and Lithuanian partners are yet to decide whether to invest in the company ahead of its IPO, describing their involvement as a "broader, gradual process" with discussions continuing. This could include their involvement at the IPO stage. The airline notes that its planned expansion will "bring benefits to the entire region." On 7 July, the Estonian government indicated that it would not be investing in Air Baltic for now, instead prioritising the development of its own main airport in Tallinn. "When Air Baltic’s business plan is clearer, we can reconsider the purchase," Kuldar Leis, Estonia’s minister of infrastructure, was quoted by the government as saying. Air Baltic and the Latvian government are keen for the airline to attract external capital, either via its potential IPO or other means, to enhance the carrier’s ability to attract external capital. Air Baltic disclosed on 13 August that it has delayed plans for a "potential" IPO until 2026, having first floated the idea of taking the company public in 2019.


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