ANA flags ongoing impact of engine and delivery issues
February 06, 2025
All Nippon Airways is experiencing fleet availability issues due to the ongoing Pratt & Whitney issues affecting its Airbus A320neo family aircraft and challenges with the Rolls Royce Trent 1000 engines that power its Boeing 787s. The airline states in an investor presentation that it is mitigating the impact of the A320neo groundings caused by enhanced inspections required on their PW1000G engines, with only 11 expected to be grounded by the end of March, down from 13. On the 787s, it notes that there are "ongoing engine availability challenges for parts replacement" on the Trent 1000 engines due to tight supply that is "causing operational limitations" for that fleet. On new aircraft deliveries, ANA notes that it expects 11 Boeing jets to be delivered this year but has "projected some delivery delays into FY2026". It did not detail which types it is expecting to take delivery of, but fleets data indicates that two 737 Max 8s, two 787-10s, one -9 and its first 777-9 are tentatively due for delivery over the 2025 fiscal year, which begins on 1 April. Overall, it holds orders for 49 aircraft, which includes three A321neos plus 20 737 Max 8s. In part, the delivery delays and engine issues are contributing to a projected 2% year-on-year decline in international capacity during FY2025, although ANA notes that it is shifting a 787 to international operations and some capacity will be offset by returning A320neo family aircraft to service. On the international front, capacity is projected to increase 6% over the fiscal year, driven by an increase in European routes. It also flags that low-cost unit Peach Aviation expects to open a new international route, while AirJapan will introduce a third aircraft to its fleet over the coming financial year.
Azul's board approves capital boost
February 06, 2025
Azul's board has approved a capital increase of R1.51-6.13 billion ($261 million-$1.06 billion) to be raised through a private subscription of new preferred shares. The capital increase adheres to "binding agreements already disclosed entered into between Azul and certain lessors and equipment suppliers that hold a portion of Azul's pending lease obligations", notes the Brazilian carrier. Azul and its creditors in October 2024 agreed a deal under which the airline's lessors and OEMs would exchange some R3 billion ($546 million) in debt for 100 million new preferred shares. The capital increase disclosed on 4 February "is inserted in the context of the company's restructuring, which aims to strengthen [its] financial condition and to generate cash and improve its capital structure, helping to bring its liabilities into balance", Azul adds. Azul remains alone among the three primary Brazilian airlines in not having filed for US Chapter 11 bankruptcy protection since the Covid pandemic's onset in early 2020. LATAM Airlines' local affiliate and Gol have both done so. In mid-January, Azul and the majority investor in Gol, Abra Group, signed a non-binding memorandum of understanding with the intent of exploring a merger of their businesses in Brazil.
ITA begins integration with Lufthansa Group
February 05, 2025
ITA Airways has started its integration into Lufthansa Group, with the two companies immediately linking their frequent flier programs and planning codeshare flights. Around 100 connections within Europe will be jointly offered between the two companies from 30 March, as part of what Lufthansa Group chief executive Carsten Spohr says will be a transaction of "many winners". Lufthansa completed its purchase of a 41% stake in the firm in January, following a three-year process of securing government backing and regulatory clearance. Speaking at a press conference in Rome on 3 February, ITA chief executive Joerg Eberhart said that he has yet to form a full strategy for his airline having been in the job for just two weeks, but he does envisage it growing next year and in 2027, “especially on the long-haul.” The “core” of his airline focus will be on Rome, he added, tallying with the intention of Lufthansa Group which sees Fiumicino airport becoming the company’s sixth European hub with significant long-haul reach. This year, ITA intends to hold its fleet at around 100 aircraft while it concentrates on consolidating with the wider company, Eberhart continued. It will become a new member of Star Alliance next year and is on track to leave SkyTeam by May. Eberhart also says that Lufthansa Group’s Air Dolomiti, a regional airline based in northern Italy, would “start covering other routes, especially towards Rome” alongside ITA’s integration, noting that it “could play a big role in” the wider Italian market. Although he adds that low-cost competitors are currently "stronger than ITA”, there is "still space" for the full-service airline, he believes. In contrast to Lufthansa and ITA's relatively rapid harmonization within Europe, their services to North America will remain separate until they receive antitrust approval in the USA and Canada to join Lufthansa’s transatlantic joint venture with United Airlines and Air Canada. They plan to file for this at end-March with approval expected after 12-18 months, Eberhart said, noting that ITA's existing routes to North America have already been a “great success.” Speaking alongside him, Spohr said that his “clear target” was the complete ownership of ITA, with the Italian government currently holding the majority stake. “We don’t invest in an airline to breakeven,” he continued. “We invest for a return. That means an 8% margin.” He estimates that it will take around 18 months for the full synergies from the transaction to apply, bringing them to 2027.