Pakistan to privatise national carrier
August 08, 2023
Pakistan announced on 7 August that it plans to privatise national carrier Pakistan International Airlines (PIA). "The CCoP (Cabinet Committee of Privatisation) after deliberation decided to include Pakistan International Airlines Co. Ltd (PIACL) in the list of active privatisation projects of the ongoing privatisation programme, following an amendment in the law by the Parliament," the government states. At the meeting, the committee also gave a nod to hiring a financial advisor to “process/structure transaction” of Roosevelt Hotel in New York, an asset of PIA Investment. PIA leased out the hotel in May to New York city’s administration for $220 million for three years. The carrier posted an operating profit of PRs767 million ($2.7 million) in the first quarter ended 31 March, reversing a loss from a year ago. However, net loss attributable to came in at PRs38 billion, widening from a PRs14.3 billion loss in the year-ago period. PIA made an operating loss of PRs11.3 billion in 2022, narrowing from the year before, although its net loss of PRs88 billion widened from the year before. The carrier has 34 aircraft in its fleet, with 16 units on lease. It has 23 aircraft in service comprising 12 Airbus A320ceos, nine Boeing 777s and two ATR42s and 11 in storage, comprising five A320ceos, three ATR 72s, one ATR42 and two 777s in storage, according to fleets data. It flies to about two dozen international destinations mostly in the Middle East and also Toronto, Beijing and Kuala Lumpur, and over a dozen destinations domestically.
Jazz experiencing capacity constraints due to pilot shortage
August 08, 2023
Strong industrywide demand for pilots is causing capacity constraints at Canadian regional carrier Jazz Aviation, according to the chief executive of parent company Chorus Aviation. "There is a gap between pilots exiting the organisation and the time it takes to train new hires for productive flying, which temporarily constrains available flying hours," said Colin Copp during Chorus's second-quarter earnings call held on 4 August. He adds that the company is "actively recruiting" pilots and growing its pipeline of future pilots through its Jazz Pathway Program – which offers top-performing graduates the opportunity to transition to first officer positions at the carrier – as well as through its new flight training academy Cygnet Aviation. Jazz's pilot flow agreement with Air Canada is "working as intended", Copp says, adding that 300 pilots have transferred to the mainline carrier over the past year, though there has also been some attrition to other airlines. Jazz continues to see a "good supply of new hire pilots", according to Copp. He goes on to say: "The leadership team at Jazz is very focused on collaborating with our partner Air Canada to coordinate pilot flow and flying capacity. While the production in annual block hours is temporarily constrained as the pilots are getting trained, the reduction in flying does not have any impact on Jazz's earnings". Copp believes the constraints will lift later this year and next year, but it will depend on "what happens in the business big picture wise". "If things slow down a little bit then we'll recover really quickly," he adds. "If the demand continues and we see more growth in the mainline side, we're going to continue to produce lots of new pilots – that's for sure." Chorus chief financial officer Gary Osborne notes during the same earnings call that Jazz has a "fixed margin in place with Air Canada that does not vary regardless of flying". "So from an economic perspective, as far as the fixed fee... there is no impact associated with the reduced flying," he says.
Embraer delivers 17 commercial jets in the second quarter
August 07, 2023
Embraer delivered 17 commercial aircraft in the second quarter of 2023, which the Brazilian airframer says is a 55% increase on the corresponding quarter in 2022. So far during 2023, Embraer has delivered a total of 24 commercial aircraft. The deliveries in the recent quarter comprised 10 E175s and seven E195-E2s. Embraer notes the previously announced news that American Airlines placed a firm order for seven additional E175 aircraft to be operated by its regional subsidiary Envoy Air. The manufacturer also notes its firm order from Binter for six E195-E2s, which will bring Binter's E2 fleet to 16 jets when deliveries are completed. The Spanish airline said last month that it was financing the aircraft with an agreement with a consortium of Spanish banks, including Santander, Caixabank and BBVA. The aircraft are scheduled for delivery in 2024-25. Embraer adds that in Asia-Pacific, Malaysia's SKS Airways closed an agreement to add ten E195-E2 jets to its fleet. Scoot, a low-cost subsidiary of Singapore Airlines, is also adding nine E190-E2s to its portfolio. Four E175s have begun to operate with Star Air, an Indian airline that already operates E-Jets, Embraer says. In the Middle East, Royal Jordanian Airlines reached an agreement to introduce eight E190-E2 and E195-E2 jets into its operations, with deliveries starting in the fourth quarter of 2023. As of 30 June 2023, Embraer had a firm order backlog of 271 aircraft, which it notes includes orders for the defense segment placed by state-run airlines including Satena and TAME.