Fitch Ratings has affirmed its shareholder support (SSR) and long-term issuer default (IDR) ratings for CDB Aviation, CDB Leasing and Bocomm Leasing. The US agency has maintained its "A+" rating on both metrics for the China Development Bank-controlled entities and Bocomm Leasing's "A" rating. Fitch says its affirmation for CDB Leasing reflect the "very high probability" of support from CDB in times of stress, given the bank's 64.4% majority control and the lessor's status as a "core subsidiary". "We expect CDB to provide liquidity and capital support to CDB Leasing, if needed. We believe CDB Leasing's status as a listed company does not weaken its role as a core subsidiary of CDB or the close links and integration between the two," writes Fitch. It observes that CDB Aviation's IDR is, similarly, driven by "very high probability" of support from CDB Leasing and its ultimate parent CDB, reflecting the unit's "strategically important role" as the sole aircraft-leasing platform within the group, and its support of China's strategy to develop the aviation industry under the nation's 14th five-year plan. Fitch notes that the IDRs and SSRs of CDB Leasing and CDB Aviation are underpinned by shareholder support and are equalised with CDB's ratings. Any change in CDB's ratings, reflecting a shift in the perceived willingness or ability of China's government to support the bank in a full and timely manner, or a change in China's sovereign rating ("A+/Stable") would therefore affect the ratings by at least the "same magnitude", the agency warns. Likewise, any signs of a "weakening in the linkages" between CDB, CDB Leasing and CDB Aviation or decline in the perceived level of support from CDB could lead to a ratings downgrade. These would include a meaningful reduction in CDB's shareholdings or CDB losing its status and strong control as majority shareholder, changes in the regulatory obligation in CDB Leasing's articles of association for CDB to provide capital and liquidity support, or a significant change in CDB Leasing's and CDB Aviation's roles in the group or strategies that make them deviate significantly from the shareholder's overall strategy or policy role, Fitch specifies. Any restructuring that affects the role of CDB Aviation or additional regulatory restrictions that limit CDB Leasing's ability to provide timely support may also lead to negative rating action on CDB Aviation, the agency adds. It has affirmed Bocomm Leasing's and its overseas platforms' short-term IDRs at "F1+". Meanwhile, their SSRs have been affirmed at "A". Additionally, the ratings on the medium-term note programmes and senior unsecured notes issued by Bocomm Leasing's overseas platforms and special-purpose vehicles have also been affirmed at "A". The IDRs and SSRs of Bocomm Leasing and its overseas platforms are underpinned by support from parent firm Bank of Communications, Fitch notes. "The stable outlook reflects our expectation Bocomm Leasing's role in the group and the operational linkages with its parent will not change substantially. The outlook is consistent with the stable outlook on Bocomm's ratings and China's sovereign rating," writes the agency. It again adds the caveat that any sign of a weakening in the linkage between the lessor and its parent or decline in the perceived level of support from the parent could lead to a ratings downgrade.

Mesa Air Group made an operating loss of $40.2 million during its third quarter ended 30 June, reversing an operating profit of $213,000 in the year-ago period. The Phoenix-based parent company of Mesa Airlines says it generated $115 million in operating revenue during the quarter, down 15% year on year, while contract revenue decreased 21%. These decreases were primarily driven by a 50% reduction in CRJ-900 block hours and fewer aircraft under contract, partially offset by higher United block-hour rates for new pilot payscales, the group adds. For the quarter, approximately 96% of its total revenue was from contracts with United Airlines. Mesa says total operating expenses grew 16% year on year to $155 million, primarily due to a $30.5 million impairment on assets held for sale. Net loss widened to $47.6 million during the quarter from a loss of $9.99 million during the same period last year. For the nine-month period, operating loss stood at $64.1 million versus an operating loss of $48.5 million in the year-ago period. Operating revenue declined by 5.4% to $384 million, while net loss widened to $91.8 million versus a loss of $67 million. Mesa ended the quarter with $48.3 million in unrestricted cash and equivalents, down from $57.7 million as of 30 September 2022. As of 30 June, the company had $566 million in total debt secured primarily with aircraft and engines.
Mesa chief executive Jonathan Ornstein states: "As expected, fiscal 2023 has been a transformative year as we ended our agreement with American Airlines and transitioned all of our regional capacity to United. One of our key initiatives remains the disposition of excess CRJ-900 aircraft and related assets." "To date, we have entered into agreements to sell 18 excess CRJ-900s, four of which we closed earlier this year, with the remaining 14 expected to close by calendar-year end. We are currently in active negotiations for the sale of additional aircraft," he adds.

Cyprus Airways has appointed Christos Limnatitis as its new chief commercial officer. Limnatitis joins from telecoms operator CYTA, where he has been marketing and sales manager since January last year, according to his LinkedIn profile. He has held various positions at the company since 2015. "We are delighted to welcome Christos Limnatitis as our new chief commercial officer," states Paul Sies, Cyprus Airways' chief executive. "Christos's proven track record in enhancing customer satisfaction and his innovative approach to personalised service will undoubtedly elevate our airline's reputation as a customer-centric industry leader." Cyprus Airways says Limnatitis will shape its overall customer experience, strengthening relationships with passengers and meeting their evolving needs. "I am truly excited to join the Cyprus Airways family," states Limnatitis. "I look forward to working closely with the team to elevate our passengers' experiences, nurture lasting connections with our loyal customers, and attract new travellers to enjoy the unmatched services Cyprus Airways has to offer."