Hong Kong Airlines Ltd spokeswoman Eva Chan stated the carrier would announce either a firm order or a Letter of Intent for A380 equipment in the upcoming Paris Airshow next week, as it seeks to expand its international network (Dow Jones Newswire/Bloomberg, 13-Jun-2011). "Our senior executives are liaising the terms with Airbus on the A380 purchase, and they have yet to decide on the number of aircraft for the Airbus Superjumbo," Ms Eva Chan said. Hong Kong Airlines will be the third new A380 customer this year following Skymark Airlines and Asiana Airlines. Earlier this year, Hong Kong Airlines agreed to order 32 B787s and six B777s to support its expansion.
Hong Kong Airlines to order A380s at Paris Airshow
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HK Express receives first A321 and awaits A320neo as Hong Kong's LCC rate grows to 10 percent
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Asian LCCs are increasingly gravitating to larger aircraft to try to overcome insufficient infrastructure. Larger narrowbodies at LCCs gained wide awareness with AirAsia's A321 order, although many other LCCs will operate larger types before AirAsia receives its first A321. The A320neo brings additional range, besides the usual efficiency improvements.
HK Express plans to end 2017 with 32 aircraft. Even if sustainable markets can be found, this is rapid growth for an opaque slot system at Hong Kong International Airport. HK Express' continued growth will further boost the share of seats that LCCs operate at Hong Kong. LCCs account for 10% of capacity at Hong Kong in 2016 – up from 5% in 2012. The gains have mostly been earned due to HK Express. With as much success as HK Express claims, it might now be time for the LCC to open its books and present transparent financial reports.
United Airlines Part 2: Sustaining balance sheet strength while declaring ambitious margin targets
One area where United Airlines has made important strides during the last few years is in overhauling its balance sheet. Its efforts have gained some recognition from credit agencies for its progress in paring down debt and improving leverage ratios; but similarly to its rival American Airlines – attaining an investment-grade credit rating is not a huge priority for United. The airline believes it can achieve some benefits that investment-grade companies enjoy with the current state of its balance sheet.
In order to sustain the progress it has made in balance sheet repair United plans to amend its aircraft order book to slash capex commitments during the next couple of years, including the deferral of 61 Boeing narrowbodies. United is hinting that other fleet changes could be under consideration, including deals similar to the agreement it forged during 2015 to lease used Airbus A319s.
This is Part 2 in a two-part series reviewing United’s financial and revenue-generating opportunities.