India amends insolvency laws to exclude aircraft and engines
October 06, 2023
India has amended its insolvency laws to exclude agreements pertaining to aircraft engines and airframes, paving the way for lessors to repossess planes from debtors in the country. The notification states that certain provisions under its insolvency and bankruptcy code will no longer apply to transactions under the Cape Town Convention. “The provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), shall not apply to transactions, arrangements or agreements, under the Convention and the Protocol [Cape Town convention and protocol], relating to aircraft, aircraft engines, airframes and helicopters,” states a notice by India's ministry of corporate affairs dated 3 October. Previously, the adjudicating authority could place a moratorium prohibiting the recovery of assets in the possession of debtors by owners or lessors, as was the case for grounded carrier Go First. Go First formally entered insolvency restructuring on 10 May after India's National Company Law Tribunal issued an order under which owners or lessors are prohibited from recovering their assets from the airline. The amendment also came as the Aviation Working Group projected a downgrade of India’s CTC compliance index late September, citing Go First's insolvency proceedings as developments that “negatively implicate CTC non-compliance” in the country.
Air Tanzania receives its first Max
October 05, 2023
Air Tanzania has taken delivery of its first Boeing 737 Max 9 from the US airframe. Boeing notes that Air Tanzania will be the first African carrier to operate 737-9s. Fleets data shows that the carrier has another Max of an unspecified variant on order, along with one 787-8. Air Tanzania's fleet includes two in-service 787-8s plus a 767 Freighter, four Airbus A220-300s, five De Havilland Canada Dash 8-400 turboprops, a Dash 8-300 and a Fokker 28. The 767F was delivered by Boeing in June. Managing director Ladislaus Matindi describes the first Max delivery as a significant milestone for the airline. "As we ascend to new heights," he states, "Air Tanzania enhances the fleet's capabilities and exemplifies its commitment while extending our appreciation to Boeing as invaluable partners in enabling our vision." Air Tanzania previously operated 737-200s.
United firms options for 50 787s and 60 A321neos
October 05, 2023
United Airlines has converted to firm orders options for 110 aircraft set to be delivered starting in 2028. The US major firmed previous options and purchase rights for 50 Boeing 787-9 aircraft, intended to be delivered from 2028 through 2031. Options for 60 Airbus A321neo aircraft were converted to firm orders as well, with those aircraft set for delivery between 2028 and 2030. United took new options for up to 50 additional 787s and purchase rights for 40 more A321neo aircraft. A previous significant aircraft order by the Chicago-based airline was booked in June 2021, when it agreed to purchase 50 737 Max 8 and 150 Max 10 jets and 70 A321neo aircraft. The Chicago-based carrier now expects take delivery of approximately 800 new narrowbody and widebody aircraft between 2023 and the end of 2032. The firm aircraft orders disclosed on 3 October mark a continuation of United's ongoing efforts to upgauge its fleet. "The country is just not building a lot more runways, and that's just going to cause us to need to upgauge our aircraft to respond to growing demand," United's chief commercial officer Andrew Nocella said on 3 October during a media briefing. "This order really allows us to do that. It allows us to have fewer flights but more seats per departure to make sure we can get everyone where they need to go. Without upgauging I don't think that would be possible for United or for the industry." Nocella says that patterns in travel demand will determine how quickly United will retire its 61 narrowbody 757 aircraft (average age 24.8 years, fleets data shows) and 53 widebody 767 jets (average age 25.9 years). "There's just not a lot of room to grow in certain key European airports in particular, and even certain Asian ones. While the 767 is a smaller machine than the 787s that will eventually replace it, it's not as simple as a one for one swap because you're dealing with very dynamic demand [changes]." He adds: "Ultimately, the 787 will fly a lot of the routes that the 767 is flying today, if not all of them." Prior to the 50 787s ordered on 3 October, United had 71 787 aircraft in service and 100 on order. United's 50 A321XLR that it ordered in 2019 will eventually replace some of the carrier's 757 aircraft, Nocella says. "But even many of our 757 routes will ultimately be flown with widebody jets as demand grows and we don't tend to increase frequency to some of those destinations."