China Southern Airlines announced (09-May-2011) its subsidiary Xiamen Airlines has entered into an aircraft acquisition agreement with Boeing to purchase six B787 aircraft. China Southern stated Xiamen will purchase the aircraft at "significantly" less than the catalogue price of USD1.1 billion for these aircraft combined, including airframes and engines. The aggregate consideration for the acquisition will be partly funded by internal resources and partly by financing arrangements with commercial banking institutions. The aircraft will be delivered in stages from 2014 to 2015. The aircraft will increase the ATKs of the group by 3.5% from levels at 31-Dec-2010. Xiamen Airlines stated the order is consistent with the development strategy and the aircraft fleet structure plan of the group and will facilitate the optimisation of the fleet and capacity, "thus enhancing the competitiveness and core competence of the Group." [more]
Xiamen Airlines orders six B787 aircraft
You may also be interested in the following articles...
America's airlines adjust A350 commitments. United's order in doubt as used widebodies draw praise
A desire to cut capex commitments and keep capacity in check has resulted in airlines based in the Americas undertaking comprehensive reviews of their fleets, engaging in early retirement of aircraft and deferrals. A major focus for those airlines as they scrutinise their fleet composition is widebody aircraft.
Due to the production and delivery schedules of the Airbus A350, some airlines in the Americas are opting to defer or transfer their aircraft to their partners. Earlier in 2017 United made the boldest move in declaring it was placing heavy focus on its 35 A350 widebodies on order, and possible alternatives to the aircraft.
United’s decision to consider alternatives for its A350 order is based on an overabundance of used widebody capacity and the favourable economics those aircraft can deliver with respect to ownership costs as lease rates remain soft. Airlines in South America are taking advantage of newly forged financial partnerships to alleviate some of their A350 commitments made during better economic times.
Gol warns capacity imbalance created by competitors could pressure yields in Brazil
Brazil’s largest domestic airline, Gol, is maintaining a cautious outlook for 2017 as concerns about capacity additions by Azul and Avianca Brazil create an overhang for a recovery in the country’s domestic market. Gol and its main competitor LATAM Airlines Brazil have maintained a rational supply during the last couple of years, but forward looking schedules for 2017 show double digit ASK growth for Azul and Avianca Brazil year-on-year in early May-2017.
Gol made progress in unit revenue and yield recovery in 2016, but remains concerned about the effects of competitive capacity growth on fares, and ultimately yields. The airline is forecasting slower yield growth in 2017, and is warning a lack of industry capacity discipline could create additional yield pressure. Gol plans to keep its own system capacity in check for 2017, with projections of flat growth to a 2% decrease as its fleet shrinks, before growing in 2018 when the airline takes first deliveries of its 737 Max jets.
Although the corporate market within Brazil remains in tenuous shape, Gol believes it has expanded its share among business travellers – driven in part by network changes it adopted in 2016 to make schedules more attractive to corporate customers. However, the size of Brazil’s corporate travel market remains stagnant, and predicting expansion of business travel remains difficult.