S&P Global Ratings has assigned its "A" issue-level rating to United Airlines' series 2023-1 Class A pass-through enhanced equipment trust certificates (EETCs). The rating on the Class A certificates is seven notches higher than its "BB-" long-term rating on United, the ratings agency says. United plans to finance 39 new already delivered aircraft with about $1.32 billion of Class A certificates. The Class A certificates have an expected final distribution date of 15 January 2036, with legal final maturity 18 months later. The transaction will be backed by 39 new Boeing 737 Max aircraft, including 22 737 Max 8s and 17 737 Max 9s.
"Our ratings on United and its debt, including our ratings on the company's existing EETCs, are unchanged," it adds.
S&P Global states: "We will assign ratings on completion of our legal and documentary review. We base our rating on the credit quality of parent United Airlines Holdings; high affirmation credit; collateral coverage afforded by new, high-quality aircraft; and the legal and structural protections available to the certificates. "The secured notes relating to each aircraft are cross-collateralised and cross-defaulted, a provision we believe increases the likelihood that United would cure any defaults and agree to perform its future obligations (including payment obligations) under the indentures in a bankruptcy. If United does file for bankruptcy, we believe there is a very high likelihood that it would successfully reorganise."

Vietnamese carrier Bamboo Airways has selected former JAL executive Oshima Hideki to chair its newly appointed board as it charts a path out of financial and legal troubles. Five-year terms for Hideki and the other new board members were approved during Bamboo's annual general meeting held on 21 June. Hideki has nearly 40 years' experience in aviation, including as vice-president of Japan Airlines and of Tokyo Narita airport and as project director at Tokyo Haneda. The airline has named Nguyen Ngoc Trong as executive vice-chair; Doan Huu Doan and Phan Dinh Tue as vice-chairs; and Le Ba Nguyen, Le Thai Sam and Tran Hoa Binh as members. It also appointed Nguyen Thi Huu, Nguyen Bich Ngoc and Nguyen Dang Khoa to its supervisory board. Targets for fleet and revenue growth were disclosed at the AGM. The airline intends to expand its fleet to 36 aircraft by year-end and achieve passenger and cargo revenue growth of 15-20% year on year. Fleets data shows Bamboo Airways has a fleet of 30 aircraft, comprising six Airbus A320ceos, six A320neos, four A321ceos, six A321neos, three Boeing 787-9s and five Embraer 190LRs. It plans to maintain its domestic network encompassing 22 airports and expand its international network to key markets in Europe, Australia, Northeast Asia and Southeast Asia. The new board appointments come amid a significant shake-up in the airline's shareholding and executive leadership, arising from the arrest of parent group FLC's founder and former chairman Trinh Van Quyet on charges of stock-market manipulation in March 2022. Trinh has a 55.5% stake in the airline. In March, FLC indicated plans to divest its entire stake in the airline as part of a group-wide restructuring. Later that month, Bamboo Airways said it intended to seek shareholder approval for a private rights offering to raise around D9.96 trillion ($423 million), which shareholders rejected at a 10 April extraordinary general meeting, according to a report on English-language news website VNExpress International. In late May, the airline named Nguyen Minh Hai as its new chief executive, VNExpress International has reported. He replaced Nguyen Manh Quan, who had held the office only since 27 July 2022. Property developer Him Lam has reportedly become a new shareholder in Bamboo alongside several Japanese investors.

The Australian Competition and Consumer Commission has issued a draft determination that proposes to authorise Qantas and Emirates to extend their joint network agreement until 2028. The deal allows the two airlines, and Jetstar Group carriers, to coordinate passenger and cargo operations on routes between Australia and the UK/Europe, New Zealand, Asia, the Middle East and North Africa. "The ACCC considers that the proposed conduct would likely result in public benefits, including increased connectivity and convenience and greater loyalty program benefits for consumers," ACCC commissioner Anna Brakey says. The commission adds, however, that it is concerned about the impact the alliance may have on the Sydney-Christchurch route, as Air New Zealand is the only independent carrier on the route. Data shows that Emirates operates daily fifth-freedom services on the route using Airbus A330-800s, accounting for just over half of the 6,751 weekly seats available. Qantas flies 11 services per week with Boeing 737s-800s, generating 1,914 seats per week, while Air New Zealand has daily services using A320s and A321s, which accounts for 1,284 seats per week. "We have included a condition in the draft approval, requiring Qantas and Emirates to provide the ACCC with information so we can monitor the competitive dynamics on this route during the authorisation term," adds Brakey. The commission is now taking submissions until 12 July on the draft determination before it makes a binding decision. Qantas and Emirates have operated in the alliance since 2013 and were granted interim authorisation to extend that in March until a final decision is made.