Nordic Aviation Capital (NAC) and ATR signed (18-Jun-2013) a historic agreement for the sale of 90 ATR -600s, including 35 firm orders (30 ATR 72-600s and five ATR 42-600s). The contract, including options, amounts to over USD2.1 billion. NAC, which has signed several orders for new ATRs over the past three years, already has the largest fleet of ATRs in the world with over hundred aircraft. With the progressive arrival of the 30 additional ATR 72-600s and 5 ATR 42-600s into its fleet, NAC's ATR portfolio will exceed 150 aircraft by 2016. NAC chairman Martin Møller said: "We have made ATR turboprops one of the main pillars of our present and future development. We believe that regional aviation in the years to come will increasingly rely on this outstanding technology, and that ATR aircraft will continue to see great success with airlines operating in this segment. The 180 airlines operating ATRs around the world represent so many opportunities for us to grow our business." He added: "Our experience as lessors confirms the strong demand for ATRs with regional airlines. Their very low operating costs and high reliability are the major drivers for ensuring profitability, both for airlines and for ourselves." In the past three years, nearly one in four ATRs were sold to leasing companies. [more - original PR]
Nordic Aviation Capital places a landmark order for 90 ATR -600s
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Malaysia Airlines' Firefly Part 2: overcapacity at Kuala Lumpur Subang leads to restructuring
Overcapacity at Kuala Lumpur Subang Airport has forced the Malaysia Airlines Group to restructure its regional subsidiary Firefly. The airline has cut its fleet and implemented a new reduced schedule in hopes of improving yields and load factors.
Closer integration with Malaysia Airlines is being pursued, resulting in codeshares, frequent flier tie-ups and potentially a rebranding. Firefly remains an important component of the Malaysia Airlines Group, which also has restructured over the last two years, but a smaller operation is required to restore profitability in an extremely challenging marketplace.
The Subang market is relatively limited in size with only six sizeable domestic routes from Subang, all of which are now suffering from overcapacity due to aggressive and rapid expansion from Lion Group's Malaysian affiliate Malindo Air. The irrational dogfight that has emerged between Malindo and Firefly at Subang is a potential precursor of a bigger looming battle at much larger Kuala Lumpur International Airport (KLIA) between Malindo and the Malaysia Airlines Group.
Malaysia Airlines subsidiary Firefly reduces ATR fleet as competition with Malindo intensifies
Malaysia Airlines regional subsidiary Firefly has cut its fleet by six aircraft and slashed domestic capacity at its Kuala Lumpur Subang Airport base by approximately 40% as part of a turnaround attempt. Firefly now operates only 12 ATR 72 turboprops, down from 18 aircraft a few months ago.
Firefly has been significantly impacted by extremely aggressive expansion at Lion Group’s Malaysian JV, Malindo Air. Malindo has quickly expanded its Subang operation since it was launched in 2013 and now has 16 ATR 72s, all of which are based at Subang.
Malindo has injected new competition across all of Firefly’s previously exclusive domestic routes from Subang. While Malindo has been able to stimulate some demand, yields have plummeted and load factors are very low.