LATAM set to exit Chapter 11 in early November
October 17, 2022
LATAM Airlines Group has reported the results of the pre-emptive rights period for shareholders, which it deems a "key step" towards exiting Chapter 11 bankruptcy protection. The Chile-based group projects that its reorganisation plan will become effective during the first week in November. It expects to exit the Chapter 11 proceeding with $2.2 billion of liquidity and a debt reduction of approximately 35% compared to the debt it had pending before filing for bankruptcy protection in the USA. "This has been another positive week for LATAM," LATAM's chief executive Roberto Alvo states. "The exit financing was secured, the pre-emptive rights period for shareholders ended and we are close to exiting the Chapter 11 process. We have met the deadlines and objectives we set for ourselves and we are confident that we will emerge stronger from this challenging period." The pre-emptive rights period (POP) ended on 12 October. LATAM has also reported the results for shareholders of the "second round", an option available to shareholders or assignees who subscribed shares in the POP and who expressed their intention to participate in that alternative, which was only available on 13 October. LATAM and its affiliates in Chile, Peru, Colombia and Ecuador on 11 May 2020 filed for Chapter 11 amid a near-shutdown of global aviation in the early months of the pandemic. The group shuttered its Argentinian affiliate on 17 June, and on 9 July 2020 included its Brazilian affiliate in the Chapter 11 filing. In July 2022, LATAM's shareholders gave the green light to a new capital structure outlined in the carrier's reorganisation and financing plan, which on 18 June was approved by the US bankruptcy court for the Southern District of New York. The US Department of Transportation in September gave final approval to LATAM's joint venture with US major Delta Air Lines.
Avolon A320neo repainted in Jet Airways livery
October 17, 2022
Irish lessor Avolon has had an Airbus A320neo repainted in the livery of India's Jet Airways. Maas Aviation – an aircraft painting and exterior coatings specialist says: "I can confirm that we did paint a Jet Airways livery for Avolon in September." The company declined to comment further, "in respect of client confidentiality". A photograph dated 27 September and posted to the Planespotters.net website shows the aircraft (MSN 10546), bearing the Jet livery, at Maastricht Aachen airport in the Netherlands. Data indicates that MSN 10546 is managed by Avolon and had been bound for Russia's S7 Airlines until the lease was terminated in mid-February before the aircraft could be delivered. Indian newspaper The Hindu Business Line reported on 28 September that Jet had entered into a lease agreement with Avolon to lease A320 aircraft. However, Jet said in a 6 October stock-exchange filing in response to that article that it had "not finalised or approved or entered into any arrangement related to aircraft". Avolon tells Cirium it "does not comment on specific customer relationships". Jet halted operations in April 2019 and was subsequently approved to enter a corporate insolvency resolution process. It has been working towards relaunching operations under a consortium between UAE-based businessman Murari Lal Jalan and UK-based Kalrock Capital.
Ryanair seals collective deal with UK cabin crew
October 14, 2022
Irish low-cost carrier Ryanair has signed a new collective agreement with UK trade union Unite. The deal covers accelerated pay restoration, upfront and annual pay increases, and restructuring of pay to deliver more guaranteed earnings, and applies to all of Ryanair's UK-based cabin crew until 2026, the carrier says. Under the agreement, cabin crew will benefit from competitive starting pay and a fixed 'five days on, three days off' roster, it adds. "A core feature of this new agreement is a clear career path, helping crew to rapidly secure promotions to senior cabin supervisor and training roles as the airline grows." Ryanair's people director Darrell Hughes states: "We continue to work with our crew and their unions across Europe on new agreements, similar to those concluded with Unite in the UK, CCOO in Spain and SNPNC-FO in France this week. We have already successfully negotiated improved long-term agreements this summer with over 85% of our pilots, and over 90% of our cabin crew, as we prioritise post-Covid pay improvements." The airline is currently recruiting for new cabin crew in the UK as it aims to create over 2,500 new jobs and grow to passenger numbers of 225 million per annum by 2026. It expects to reach 115% of its pre-Covid capacity this year.