ARC NEWS
SriLankan Airlines ups capacity with leased aircraft and engines
December 28, 2023
SriLankan Airlines has added a leased Airbus A320ceo to its fleet, with several more leased aircraft and engines expected to join in the coming weeks. The A320ceo will be leased for six years and brings the airline's fleet to 22 aircraft. The additional leased aircraft and engines will help the airline alleviate the challenging year due to shortages of available aircraft and engines.


S7 and Ural Airlines reach settlements with lessors
December 27, 2023
Private Russian carriers S7 Airlines and Ural Airlines have reached insurance settlements with lessors covering a total of 64 aircraft. S7 says that it has completed settlements with a group of "foreign lessors" relating to 45 medium-haul aircraft, totalling almost half of its fleet, along with four engines. These settlements, which were reached with the participation of Russian insurance company NSK, were with lessors including AerCap, Air Lease Corporation (ALC) and SMBC Aviation Capital. S7 says these agreements terminate claims against Russian parties under both insurance policies and lease agreements for the aircraft. Ural Airlines says it has completed the insurance settlement process for 19 Airbus aircraft with AerCap. In a 21 December regulatory update, AerCap says that it received cash insurance settlement proceeds of approximately $572 million in relation to 18 aircraft and one spare engine with Ural Airlines, and 29 aircraft and four spare engines with S7. The lessor says it has a separate claim against its all-risk insurers under its contingent and possessed insurance policies, which relates to these 47 aircraft and five spare engines, and covers approximately $836 million. This claim will be amended in due course to "reflect these recoveries," it adds. AerCap says insurance settlement discussions are ongoing with respect to its remaining claims under the insurance policies of S7 and other Russian airlines. "It is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds," it adds. Also in a 21 December regulatory update, ALC says it received cash insurance settlement proceeds of approximately $64.9 million in regard to its insurance claims against S7 for three A320s and one A321, and now releases its claims. Another five A321neo jets previously on lease to S7 were not included in the insurance settlement, the US lessor highlights. ALC says further settlement discussions regarding aircraft previously leased to Russian airlines are ongoing. However, it adds that it is "uncertain whether any of these discussions will result in any settlement or receipt of settlement proceeds and, if so, in what amount". The California-based lessor notes that it took legal action in December 2022 in the Los Angeles county superior court against its aviation insurance carriers in connection with its previously submitted insurance claims. While receipt of these insurance settlement proceeds serve to mitigate, in part, ALC's losses under its aviation insurance policies, the lessor asserts it "continues to have significant claims against its aviation insurance carriers and will continue to vigorously pursue all available insurance claims and its related insurance litigation, and all rights and remedies therein".


Air China to raise $840 million for 17 aircraft, working capital
December 27, 2023
Air China plans to raise up to CNY6 billion ($840 million) through a private share issuance. The funds will be used to purchase 17 new aircraft and to replenish the company's working capital. As per sources, Air China will not issue more than 855 million A shares to its controlling shareholder, China National Aviation Holding Corporation (CNAHC), at a share price of CNY7.02 per share. The airline currently has a fleet of 498 aircraft in service and stored in its fleet. It also has 108 jets on order, with 34 scheduled to be delivered from the end of the year through 2024, including 13 Boeing 737 Maxes and five Comac C919s. According to sources, the airline also announced that it plans to raise up to HK$2 billion ($256 million) by issuing up to 393 million H shares at HK$5.09 per share to China National Aviation Corporation, a subsidiary of CNAHC. The proceeds from this issuance will be used to replenish the airline's working capital. On 26th December, Air China's share prices were indicated at CNY7.31 and HK$4.7 on the Shanghai Stock Exchange and Hong Kong Stock Exchange, respectively, according to sources.


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