Tiger Airways Holdings Limited and Standard Chartered Bank signed (28-Oct-2010) another multi-million-dollar financing deal for the pre-delivery payments (PDP) of 14 new A320 aircraft for delivery by Mar-2013. In addition, Tiger Airways has agreed with Airbus to advance the deliveries of two aircraft originally scheduled for 2015-16 into next year. This additional PDP financing comes shortly after the conclusion of Tiger Airways’ export credit agency-backed financing with Coface of France and Standard Chartered for nine A320s and previous PDP financing arrangements covering 11 aircraft deliveries concluded earlier in 2010. Tiger Airways has a 21-strong fleet. Additional deliveries will expand the fleet to 26 aircraft by Mar-2011. It expects to have a fleet of 68 before Dec-2015. [more]
Tiger Airways signs Standard Chartered Bank for aircraft financing
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Delta Air Lines may also join United Airlines with nonstop Southeast Asia-US services. There are opportunities in the Southeast Asia-US market for nonstop routes, but competition with one-stop products will be intense. Profitability will be heavily challenged or non-existent. SIA started the trend due to strategic, not financial, imperatives. Under the charm of low fuel prices, Southeast Asian airlines risk falling into the spell of "me too" nonstop flights, just as they did with over-sized aircraft acquisitions.
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.
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