Airbus has assembled a team of lenders and leasing firms to assist in offering approximately USD6 billion in preferential financing before American Airlines (AFP, 11-Jun-2011). Airbus' offer has a catalog value of almost USD23 billion, but that is being heavily discounted. The unit of European Aeronautics Defence & Space Co is offering 130 of the current-generation A320s and 130 A320neo aircraft. Boeing is offering B737-800s and B737-900ER aircraft without specified price and financing terms.
Airbus to offer USD6 billion in preferential financing for American Airlines fleet acquisition
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Global commercial aircraft deliveries fell in 2016 as Boeing again outsold Airbus; 2017 to be a peak
The global commercial aircraft fleet grew by 4% in 2016 and the year ended with an order backlog of more than nine years of production. Among the regions, North America still has the biggest and oldest fleet, but the lowest ratio of orders to aircraft in service. By contrast, Middle East has the fewest in service, but the highest ratio of orders to current fleet numbers.
This report gives an overview of the number of commercial aircraft deliveries in 2016 and the outlook into 2017 and beyond. It also looks at numbers in service and on order by region. It is based on preliminary numbers from the CAPA Fleet Database and guidance on 2016 deliveries from Airbus and Boeing, who have yet to announce final numbers.
The data indicate that total worldwide deliveries fell in 2016, the first such decline for six years, as a result of delays to new aircraft programmes. Boeing delivered more aircraft than Airbus for the fifth straight year, but its deliveries fell short of its 2015 level, while Airbus increased its numbers year-on-year. Total deliveries will likely rise again in 2017, but this may prove to be a peak year.
Delta Air Lines: reaping rewards, but building balance sheet strength has no set endpoint
Few would challenge the conclusion that Delta has one of the soundest balance sheets among US airlines. Its reductions in adjusted net debt and leverage ratios garnered their just rewards in 2016 when the company secured coveted investment-grade rating from Fitch and Moody’s.
During the time Delta has significantly improved its balance sheet metrics it has also steadily increased its shareholder rewards, and has reiterated its commitment to increasing dividends. The airline's position is that continuing to drive the importance of its dividend performance is a key component of the company’s valuation proposition.
Similarly to many other US airlines, Delta is facing unit cost inflation in 2017; but the company’s unit costs growth for the year should fall below 2016 levels. Those costs are inflated due to a new pilot contract that joins a number of new contracts that US airlines inked in 2016, which are resetting industry pay scales.