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."
Azul concludes debt-restructuring efforts
October 04, 2023
Azul has reached agreements with "substantially all" its lessor and manufacturer creditors as part of efforts to ease its debt burden. The Brazilian carrier and its domestic rival Gol have each been negotiating payment-reduction deals with their creditors this year, amid pandemic-induced cash shortages which persist despite the revival of travel demand and the return of quarterly profits. Azul says it has completed negotiations with its lessors, resulting in the permanent elimination of lease-payment obligations that had previously been deferred during the Covid crisis, as well as a permanent reduction in lease payments from the original contractual rates to agreed-upon current market rates. Additionally, OEMs have agreed to the deferral of "certain payments", says the airline. In early March, lessors representing more than 90% of Azul's lease obligations agreed a deal which reduced the carrier's payments. In exchange, lessors would receive a tradeable note maturing in 2030 and equity priced to reflect Azul’s current cash generation, capital structure and reduced credit risk. Azul's chief executive John Rodgerson said on 10 August during an earnings call that there was still one lessor not yet "over the line". "We're still talking to them," he said. The airline has estimated that its lease payments will be reduced by R1.5 billion ($298 million) in 2023 and R1.1 billion in 2024. Its second-quarter operating profit was up 81% versus 2019, at $121 million. In August, noteholders sought to sell back to Azul $285 million worth of senior secured second-out notes due 2029, far exceeding the $55.9 million maximum repurchase amount set forth in Azul's tender offer. Separately, Gol noted in its second-quarter earnings release that it had recently completed a major debt restructuring led by parent Abra Group. Debt with a face value of $1.1 billion was repurchased. Chief executive Celso Ferrer said during Gol's second-quarter earnings call on 27 July that addressing liabilities with leasing companies was the "main focus right now".