ARC NEWS
Ethiopian orders 777X fleet
March 06, 2024
Boeing has won an order from Ethiopian Airlines for up to 20 777-9 jets. The deal includes the purchase of eight 777-9s with provisions to potentially add another 12 aircraft to the order, the US airframer says, noting that Ethiopian has thus become the first African customer for the in-development long-haul jet. "The 777-9 offers more flexibility, reduced fuel consumption and carbon emissions," states Ethiopian group chief Mesfin Tasew. "We eagerly anticipate flying the 777-9 across the African skies and beyond." Boeing did not disclose a delivery schedule for the aircraft. Fleets data shows that Ethiopian's passenger fleet comprises six 777-200LRs, four 777-300ERs, 19 787-8s, 10 787-9s, one 767, 17 Max 8s, 11 737NGs, 20 Airbus A350-900s and 28 De Havilland Canada Dash 8-400 turboprops. It additionally has 10 777Fs plus two 767 and four 737NG converted freighters. Ethiopian has another 35 Max 8s, 11 787-9s, four 777Fs, 11 A350-900s and four A350-1000s on order.


Airbus and Boeing mainly sold out through end of the decade
March 06, 2024
Airbus and Boeing executives expect a lack of available delivery slots will persist through the end of the current decade, with only a few programmes such as the 777 Freighter being available any earlier. Darren Hulst, VP commercial marketing at Boeing, told delegates at the ISTAT Americas conference on 4 March that 737 Max units are now sold out until "close" to the end of the decade, while there is a similar lack of availability of 787s. He says that the only programme that the US manufacturer has availability for right now is the 777 Freighter, and that was "obviously because we have less lead-time requirement for a freighter and also as we bridge to the 777X". Colin Bole, head of commercial North America for Airbus, says that prospective buyers of A320neo-family jets are now looking at delivery slots into 2030 and that they are "selling fast" into the next decade. He says that the scenario for the A350 programme is similar. Airbus has some availability with the A220 and A330neo products, which buyers could pick up in "small numbers" in 2027. Bole estimates that airlines might be able to secure a very small number of aircraft from lessor orderbooks for delivery in late 2025 or early 2026. Hulst sees the current supply-chain issues having an impact on OEMs' production for years to come and not reaching "equilibrium" until the end of the decade. Bole says he thinks it "may not [be until] the absolute end of the decade before [it] all gets fully back to normal".


JetBlue and Spirit Airlines terminate merger agreement
March 05, 2024
US carriers JetBlue Airways and Spirit Airlines have terminated the merger agreement they agreed in July 2022, seven weeks after a US district court judge ruled in favour of the Department of Justice after it challenged the deal on competition grounds. New York-based JetBlue says the two carriers "continue to believe in the pro-competitive benefits of the combination" but have mutually agreed that terminating the merger deal "is the best path forward". "We believed this merger was worth pursuing because it would have unleashed a national low-fare, high-value competitor to the big four [US] airlines," Jet Blue chief executive Joanna Geraghty states, adding: "We wish the very best going forward to the entire Spirit team." Spirit chief Ted Christie states: "After discussing our options with our advisers and JetBlue, we concluded that current regulatory obstacles will not permit us to close this transaction in a timely fashion under the merger agreement… However, we remain confident in our future as a successful independent airline. We wish the JetBlue team well." Had the merger come to pass, Spirit's jets would have been rebranded and retrofitted as JetBlue aircraft. Under terms of the merger agreement, JetBlue had agreed to pay Spirit $69 million in cash on 5 March 2024. JetBlue will pay Spirit the $69 million as part of the termination. While the merger agreement was in effect, Spirit stockholders received around $425 million in total prepayments, says the Miramar, Florida-based carrier. Beyond the $69 million payout, termination of the merger resolves all outstanding matters related to the transaction. Spirit notes that it has retained both Perella Weinberg Partners and Davis Polk & Wardwell as advisers in its efforts to strengthen its balance sheet and refinance upcoming debt maturities.


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