ARC NEWS
FAA launches three-month review of Boeing's safety processes
October 21, 2024
The US Federal Aviation Administration has disclosed that it is initiating a review of Boeing's Continued Operational Safety processes to determine if they are meeting the regulator's requirements. The FAA notes that the newly launched three-month review is part of its "aggressive oversight to ensure Boeing has the right tools to sustain lasting changes to its safety culture". It adds that the review will focus on Boeing's response time, risk-assessment quality, resource allocation and adherence to regulatory requirements and FAA policy. Boeing says that it will "continue to co-operate fully and transparently with the FAA", adding: "We support all actions that strengthen safety in aviation." The disclosure of the review follows a 9 October report from the US Department of Transportation's Office of Inspector General which concludes that the FAA's audit processes are not comprehensive enough to adequately identify key discrepancies and non-compliances within the Boeing production line. The office says in the report that the compliance and enforcement action system used by the FAA "is not effective for tracking milestones or determining if identified issues are repetitive and thus require elevated FAA action".


GTLK vehicle sues Qatar Airways for $93m claiming unpaid rent
October 18, 2024
A company linked to defunct lessor GTLK Europe is suing Qatar Airways in the UK for $93 million in rent and other costs relating to two leased Airbus A330s. STLC Europe Thirteen Leasing is taking legal action in connection with MSNs 792 and 813, which were leased to Qatar Airways in November 2019, court documents show. In the particulars-of-claim form, STLC Europe Thirteen Leasing accuses the Middle Eastern airline of having failed to pay rent on the widebodies since April 2022. The entity argues that – "contrary to suggestions" allegedly made by Qatar Airways in notices dated 2 November 2023 and in pre-action correspondence – there has been no loss of quiet enjoyment under the leases, and nor do sanctions applying to Russian state lessor GTLK or the entity's direct parent GTLK Europe (which is in liquidation) "relieve the defendant from performance". STLC Europe Thirteen Leasing adds that – following the expiry of MSN 792's lease term on 30 November 2023 and MSN 813's on 31 December 2023 – it is entitled to redelivery of the jets and the payment of end-of-lease compensation. Overall, the entity is claiming rent, end-of-lease compensation and indemnity payments totalling "at least" $93 million, which, it adds, continues to accrue in the amount of at least $1.19 million per month. Fleets data lists MSN 792 as a 2006-vintage A330 originally ordered by Qatar Airways. It was subsequently sold to Aergo Capital and leased back by the Doha-based carrier in 2018. STLC Europe Thirteen Leasing bought the jet in 2019. MSN 813 was likewise delivered to Qatar Airways, in 2007; sold to Aergo, in 2018; and purchased from the Irish lessor by STLC Europe Thirteen Leasing, in 2019.


Air Baltic upsizes bond issuance
October 18, 2024
Latvian flag carrier Air Baltic has upsized its €340 million ($360 million) bond issuance by an additional €40 million. The notes, which are due to mature in 2029, carry a coupon of 14.5%. Air Baltic says the issuance aligns with its strategic financial plan, enabling it to "strengthen its financial position and provide financial flexibility as the company advances its growth ambitions" and moves towards a potential initial public offering. The Riga-based airline has declined to provide further details of the bond issuance. Settlement of the bonds is scheduled to take place on 24 October, and the bonds will be listed on the Euronext Dublin stock exchange.


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