Boeing’s commercial activity slowed to a trickle in July, when the company handed over just four jets and took in no new aircraft orders. Detailing its July activity on 11 August, the airframer also revealed eight new cancellations for the 737 Max, bringing the total for the month to 43. Those previously unannounced Max cancellations include two more jets axed by Avolon, five cancelled by prospective Canadian start-up Jetlines and one Boeing Business Jet removed by an unnamed customer. Avolon has already disclosed cancellations of about 100 Max jets. A total of 35 cancellations had already been announced in July: 20 from lessor Alafco and 15 from AerCap. The July performance reflects the troubled, pandemic-hammered state of the airline industry and ongoing travel restrictions, Boeing says. Those factors have spurred order cancellations and delivery deferrals and hindered the ability of customers to travel to the USA to receive new jets, it adds. “Although we are starting to see some air traffic recovery in some places, the industry as a whole continues to grapple with the impact of the virus,” Boeing says. “We continue to work with customers as they… evaluate their fleet requirements.” The four aircraft deliveries in July included one 767 Freighter, one 777F and two 787s. Boeing adds that the low level of July deliveries also reflects tweaks in “production timing”, meaning some have shifted from July into early August. In addition to cancellations, Boeing reduced its backlog by another nine 737 Max to align with “ASC 606” accounting adjustments. Though Boeing still holds contracts to sell those jets, the company does not expect the deals will close due to factors that can include the financial condition of the customers. With the four deliveries, 43 cancellations and nine downward accounting adjustments, Boeing’s backlog in July declined by 56, from 4,552 to 4,496 jets. To date, Boeing has delivered 74 aircraft: nine 737s (including NG and military variants), one 747, 15 767s, 11 777s and 38 777s. Boeing this year has booked 59 orders. But its net figure for 2020 is negative to the tune of 836 aircraft, owing to cancellations, accounting adjustments and order conversions.

Source: Cirium

Cathay Pacific's HK$11.7 billion ($1.5 billion) rights issue, made as part of a government rescue plan, has been oversubscribed. In a filing to the Hong Kong stock exchange on 7 August, after market close, the flag carrier disclosed that it had received offers for 3.43 billion rights shares, compared with the 2.5 billion offered, an oversubscription of 137%. In addition to the minority shareholders that exercised their rights, major shareholders Swire Pacific, Air China and Qatar Airways subscribed for all of the – respectively – 1.13 billion, 751 million and 250 million rights shares provisionally allotted to them under the rights issue. These represent approximately 45%, 29.99% and 9.99% of the total number of rights shares, respectively. The rights issue is the second tranche of a three-tranche HK$39 billion recapitalisation plan for the company. The first tranche was the issuance of HK$19.5 billion in preference shares to Aviation 2020 – a limited company wholly owned by the government – for an undisclosed stake. For the third tranche, Aviation 2020 will provide a HK$7.8 billion bridge loan facility to Cathay. The bailout marks the first time the Hong Kong government has stepped in to rescue a private company.

Source: Cirium

London Heathrow airport employees are being urged by the Unite union to reject proposed pay cuts of up to a quarter, while industrial action is not being ruled out. Unite, which represents more than 4,000 Heathrow workers, says it will "consider all options", including industrial action, if members do reject the proposals. Regional co-ordinating officer Wayne King says Heathrow declined the union's request that the pay cuts be temporary. "Unite is urging HAL [Heathrow Airport Ltd] to withdraw these massive pay cuts and return to the negotiating table where Unite is committed to discussing fair cost reductions," adds King. The airport operator states that its proposal "will guarantee a job at Heathrow for anyone who wants one" and eliminate the need for any redundancies. While vowing to "protect or increase pay for half of our colleagues", Heathrow Airport Ltd confirms that "those on higher pay agreed when aviation was experiencing much better days will have to take a pay cut if they want to stay on". The cuts are in the 15-20% range "for most of those colleagues", it adds. Arguing that "a speedy recovery... is not going to be possible" – given travel restrictions that are "changing daily" and "the ongoing threat of a second wave" of the Covid-19 pandemic – Heathrow Airport Ltd concludes: "We cannot continue operating as we did before. Our final proposal will provide a job for all of our colleagues and ensure the long-term future of the airport. We urge our union partners to accept the revised offer."

SourceL Cirium