ARC NEWS
Air New Zealand joins AAPA
February 10, 2025
Air New Zealand has become the latest airline to join the Association of Asia Pacific Airlines (AAPA) . "Aviation is a complex and evolving industry, with airlines around the world navigating similar challenges and opportunities in the coming decades," says Air New Zealand chief Greg Foran. "Joining the AAPA will ensure we can share learnings with our regional counterparts, to ensure a thriving Asia Pacific aviation industry into the future." It follows Qantas joining the industry group in January, while Indonesia's Lion Air became the first low-cost carrier to join AAPA in November 2024.


​Fitch upgrades Turkish Airlines credit rating to ‘BB’
February 07, 2025
Fitch has upgraded Turkish Airlines’ debt to "BB" from "BB-" with a stable outlook, citing its expectation that the airline will maintain a solid financial performance in the coming years. A "BB" rating classes the company’s debt as speculative with an “elevated vulnerability to default risk,” although recognising that it has the financial flexibility to supports its financial commitments. The upgrade covers its long-term default rating and its standalone credit profile. Fitch believes that Turkish Airlines will continue to generate healthy cash flows and manage its debt burden effectively going forward, while noting its “strong market position” in Europe and the Middle East with EBITDAR margins close to 20%. Furthermore, the upgrade reflects Turkish Airlines' debt capacity which provides the airline with the flexibility to pursue strategic goals and weather potential economic headwinds. While acknowledging the inherent challenges posed by the airline's forex exposure and its reliance on Turkey as a core market, Fitch emphasises the airline's market position as, in its view, one of the top five carriers in the region encompassing Europe and the Middle East, a testament to its network, brand recognition, and operational efficiency. It adds its expectation that Turkish Airline’s performance should “normalise” after a strong post-pandemic rebound which pushed earnings above 2019 levels. Going forward, it expects annual revenue growth in the high single digits, mostly driven by capacity growth, while the benefits from increased pricing will be limited. Fitch nevertheless expects pressure on margins due to continuing supply chain issues and increase in other costs. It forecasts EBITDAR at around $5 billion in 2027, up from an estimated $4.7 billion in 2024.


JAL 787 and Delta 737 in ground collision at Seattle Tacoma
February 07, 2025
The right wing of a Japan Airlines Boeing 787-9 has struck the tail of a stationary Delta Air Lines 737-800 at Seattle-Tacoma International airport. The US Federal Aviation Administration says that the incident occurred at 10:40 local time on 5 February while both aircraft were "in an area that is not under air traffic control". The 787 had just operated flight JL68 from Tokyo Narita, while the 737 was preparing to operate DL1921 to Puerto Vallarta. "The FAA temporarily paused some flights to the airport as a result of the incident. The FAA will investigate," it adds. The airport says in a statement on X that there were no injuries reported, and all passengers were deplaned. Cirium fleets data indicate the Delta aircraft (MSN 30799) is owned and managed by the airline, while JAL also owns the 787 involved (MSN 34845). The Delta 737 is 24.2 years old, while the JAL 787 is 7.9 years old and powered by GE Aerospace GEnx engines. Delta tells Cirium: "While in sequence for de-icing, the tail of a Delta 737 aircraft reportedly made contact with a wing tip of another airline's aircraft. There are no reports of injuries for crew or customers on the flight, and we apologise for the experience and delay in travels." JAL confirms that there were no injuries to the 185 passengers and crew on board the 787, and that the return flight to Tokyo Narita was subsequently cancelled. "The detailed circumstances and cause of the accident are currently under investigation, and our company is fully cooperating with the investigation," the airline adds.


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