VietJet Air recently signed a syndicated loan agreement with South Korean and Chinese banks, valued at "over $200 million". Woori Bank acted as the mandated lead arranger and the other participants are KEB Hana Bank and ICBC, says the Vietnamese low-cost carrier. It also signed a separate credit financing deal with Woori for $140 million, and is arranging for a separate deal with "another international bank" valued at $200 million. "These credit agreements reinforce the growing relationship between Vietjet and the regional banks to diversify capital sources," says VietJet Air. "With Vietjet’s high growth potential, the financing agreements helped increase the medium and long-term foreign currency sources to meet the needs of expanding its modern fleet in line with the company’s long-term international growth strategy." VietJet did not provide further details of the syndicated loan’s interest rate and tenor, the capital contributed by each bank, nor elaborate on the principal amount, and did not respond to Cirium’s requests for clarification. During the third quarter, the carrier’s operating profit rose 12% to D1.91 trillion ($90.4 million). Consolidated revenue was up 6.8% to D13.6 trillion, though net profit gained just 1% to D1.7 trillion.

Source: FlightGlobal

Boeing took new orders for 63 aircraft in November amid a bump in demand for its troubled 737 Max. Order conversions and cancellations however, pushed down Boeing’s total commercial aircraft backlog by 13 aircraft, to 5,444 at the end of November. The 63 new orders included 20 737 Max aircraft booked by an unidentified customer and 10 737 Max ordered by German-Turkish leisure carrier SunExpress. An unidentified customer also cancelled orders for two 737 Max business jets, and an order conversion by lessor CALC Aircraft Assets removed another eight Max from Boeing’s order book. With those changes, Boeing’s 737 order book increased by 18 aircraft in November, to 4,405 – the first time this year that the Max backlog has gone up, the company says. The 737 Max remains grounded. Boeing’s number of 787s on order jumped by 20 aircraft in November, ending the month at 542, while Boeing’s 777 backlog declined by 45 aircraft, to 383. During the period, Emirates converted 30 777X to 30 787-9s, and Boeing also reduced Emirates 777X order book by 11 aircraft, from 126 to 115, due to contract “revisions”, Boeing says. Additionally, lessor CACL ordered two 787-9s in November via the 737 Max conversion. Boeing also recorded one new 787 order, and one 787 cancellation, during November, both from undisclosed customers. Boeing’s ended November with 97 787s and 17 767 aircraft on backorder. Between January and November, Boeing’s took orders for 243 aircraft, but cancellations and conversions have reduced year-to-date net orders to 56. Boeing delivered 24 aircraft in November, bringing total 2019 deliveries to 345 aircraft. The November deliveries included two 737-800-based P-8 naval patrol aircraft, one 747-8 Freighter, three 767-based KC-46A military tankers, two 767-300Fs, four 777s and 12 787s, the company’s figures show.

Source: FlightGlobal

European Union representatives have lodged an appeal against the latest findings from a World Trade Organization panel regarding the long-running transatlantic subsidies dispute. The WTO's findings distributed on 2 December stated that the EU side had failed to show that German and UK subsidy to the Airbus A350 had been fully withdrawn. Its analysis also found that French, German, UK and Spanish subsidies for the A380 programme had been withdrawn despite amendments to loan agreements. The WTO was also not convinced by EU arguments that the termination of the A380 programme earlier this year amounted to further confirmation of the subsidy withdrawal. A380 and A350 subsidies, it found, were still having a direct effect on the markets for the aircraft – although they were not responsible for the presence of the A330neo. Airbus had signaled that it would appeal the findings, and the WTO states that the EU side filed an appeal on 6 December. The WTO has yet to release details of this appeal.

Source: FlightGlobal