TUI Group announced (01-Oct-2010) Hapag-Lloyd placed approximately USD700 million senior notes in the capital market. In response to the strong investor demand, Hapag-Lloyd increased the originally considered note issue volume of USD500 million. In addition, Hapag-Lloyd entered into a syndicated credit line of USD360 million. Beforehand, Hapag-Lloyd had terminated the state loan guarantee and thus the payment restrictions imposed by such guarantee ceased to exist. Therefore, Hapag-Lloyd resumes interest and redemption payments on the financing instruments granted by TUI. TUI meanwhile expects payments from Hapag-Lloyd of around EUR65 million euros on deferred interest as well as the EUR227 million redemption payment of the bridge loan at the beginning of Nov-2010. In addition, Hapag-Lloyd intends to use a portion of the proceeds of the notes to make a repayment of Hybrid III in the near future subject to compliance with certain contractual liquidity requirements and financial ratios. Furthermore, as per end of Sep-2010, TUI has issued EUR100 million of private placements with maturity in Aug-2014. The envisaged Hapag-Lloyd repayments and the new private placements enhance TUI’s liquidity position. [more]
TUI places USD700m senior notes in capital market
You may also be interested in the following articles...
SunExpress: "Lufthansa's biggest strategic project"
The Turkish leisure airline SunExpress and its German subsidiary SunExpress Germany have historically had a fairly low profile, certainly among European air travellers. Nevertheless, their combined total of 7.9 million passengers puts SunExpress in the top 20 European airline groups in 2016, ahead of Brussels Airlines.
Jointly owned by Turkish Airlines and Lufthansa, SunExpress and its German counterpart brought about a consolidated result that fell into loss in 2016 as passenger numbers and revenue both declined. When the observer scratches beneath the surface of the headline figures, a picture of significant strategic change at SunExpress Germany starts to emerge.
The larger Turkish SunExpress has maintained its focus on Turkey-Germany routes, whereas SunExpress Germany has abandoned this country pair. It has instead developed leisure routes from Germany to elsewhere in Europe and in North Africa, in spite of not having an obvious competitive advantage in those markets. Within these new market areas, SunExpress Germany has undergone substantial changes in its route portfolio. Lufthansa wetleases capacity from SunExpress Germany for its Eurowings low cost operation and this may help to make some sense of these outwardly random network changes.
Europe summer 2017 airline capacity outlook: fifth successive summer of above trend seat growth
Airline seat growth from Europe in summer 2017 is set to stay at almost 6% for the third successive summer, according to data from OAG. This rate had not previously been reached since 2010, although this will be the fifth straight summer of growth ahead of its 10 year average rate. The summer 2017 season started on 26-Mar-2017 and, although always subject to further change, the data give a fairly clear picture.
Seat capacity on routes from Europe to Africa will grow the fastest, as the region recovers from a terrorism related drop in demand in North Africa. There will also be above trend growth in almost every other region from Europe (including intra Europe). The only exception is Europe-Middle East, where the newly cautious Gulf airlines' growth is slowing this summer.
On the North Atlantic, always important for the profitability of Europe's leading legacy airlines, growth will be faster than its 10 year trend, but it will at least be a little slower than in the past summer. The loss of market share from the immunised North Atlantic JVs to newer and smaller competitors, including LCCs, is set to continue. As ever, the OAG capacity data provide a window into the changing structure of the airline markets from Europe.