Airbus Asset Management
- Air Jamaica
Airbus Transport International
Pakistan International Airlines
South African Airways
Thomas Cook Airlines
United Airways Bangladesh
Yunnan Hongtu Airlines
Airbus Asset Management Division is responsible for selling and leasing used Airbus aircraft to airlines worldwide. Established in 1994 as part of the Airbus Commercial Directorate, Asset Management’s key roles and responsibilities are commercial, financial and risk management of the Airbus portfolio, risk management of the portfolio, and enhancement of the residual value of all Airbus products.
415 total articles
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.
For the past year Spirit Airlines has alluded to changes in its network structure to include a larger number of smaller to mid-size markets as competitive dynamics in the US market place have shifted. Few details have emerged other than announcement that smaller markets, including Akron-Canton, Ohio and Hartford, Connecticut would join its network.
Now more clarity about Spirit’s strategy is emerging. The airline has declared its future network composition will still feature a mix of larger and smaller markets, but some changes are occurring in frequencies operated. Spirit has concluded there are opportunities to serve a number of markets less than daily while still preserving its cost advantage. Some of those types of changes are occurring in its existing service from Akron, and from new routes debuting from Pittsburgh and Hartford later in 2017.
New basic economy offerings debuting from American and United have generated a lot of industry buzz, but Spirit maintains a belief the changes in fare structures will ultimately firm up the pricing in North America.
Avianca Holdings’ generally positive outlook is being overshadowed by a deep rift and battle between the company’s two largest shareholders over a tie up with, and strategic investment by, Avianca’s fellow Star Alliance partner United Airlines. The legal wrangling ensuing over Avianca’s and United’s future partnership could drag out their potential commercial tie up, possibly placing Avianca at a competitive disadvantage to its rival LATAM Airlines Group.
Avianca is also reconsidering a potential merger with Avianca Brazil after deciding against merging with Brazil’s fourth largest airline in 2014. The public rationale behind Avianca’s decision to have a second look at Avianca Brazil includes the beginning of a long economic recovery in Brazil, and improved financial conditions at Brazil’s fourth largest airlines.
In the short term, Avianca plans a capacity growth increase year-on-year in 2017, citing sustained demand and strong traffic and load factor growth in 2016. Although the company’s yield growth remained negative year-on-year in 4Q2016, Avianca posted sequential improvement in that metric throughout the year. The company feels confident about the trajectory of Latin America’s economic recovery, but Avianca’s long term strategy remains clouded by the composition of its ownership structure in the future.
Peter Bellew spent a decade at Ryanair before joining Malaysia Airlines in late 2015, initially as COO before being promoted to CEO in mid 2016. Mr Bellew held a wide range of positions during his tenure at Ryanair – including in operations, training, sales and marketing – providing ample exposure to Michael O’Leary’s unique approach to running an airline.
The new Malaysia Airlines strategy being implemented by Mr Bellew is decidedly non LCC. In recent months the government owned airline has reinforced its premium position, invested in its full service product, resisted unbundling, and pursued closer relationships with travel agents. However, Mr Bellew’s approach with supplier negotiations and media seems at times Ryanair-esque.
Mr Bellew has been extremely blunt in media interviews, public speeches and private meetings. He is not shy to talk about industry weaknesses and challenges – as well as opportunities to secure additional aircraft at bargain basement prices.
During the past few years the Brazilian airline Azul has acquired and merged with TRIP to grow its stature in Brazil’s domestic market, and attempted to access the public markets at least two times. After securing equity investments from HNA Group and United, the airline is once again attempting to raise funds through an initial public offering.
Azul’s decision to access the public markets once again falls against a backdrop of still tenuous economic conditions in Brazil. The airline has been adjusting its operations as Brazil’s economy has weakened – through lower capacity growth, transferring aircraft to partner airlines and returning jets to lessors. However, Azul still has a healthy order book on hand for aircraft replacement and future expansion.
Although Azul’s long haul flights to Fort Lauderdale and Orlando that were launched in late 2014 drew much fanfare, its international expansion continues to be measured, with expansion during 2017 pegged for South America, and most notably through the establishment of a new operation in Uruguay.
"A truly remarkable lineup of airlines"; over 50 executives at CAPA's Airline Fleet & Finance Summit
CAPA’s Airline Fleet & Finance Summit will be attended by "A truly remarkable lineup of airlines" from all continents of the globe, represented by their senior finance officers.
First time attendees at the event include Air Tahiti, euroAtlantic Airways, Pakistan International Airlines, Saudia, TAAG and start-up flymojo.
They are joined by AirAsia's Group Head of Strategy, the Deputy Chief Executive Officer & Chief Financial Officer of Asia Aviation Capital Limited, the Vice President, Fleet & Corporate Finance of Allegiant, Cebu Pacific's Director, Corporate Finance & Investor Relations, China Eastern's General Manager of CEA International Financial Leasing Corporation Limited, KLM's Director Group Treasury, Malaysia Airlines' Group CEO, Finnair's CFO, IndiGo's Director - Aircraft Acquisition and Financing and many others.
Together with 15 stand-alone presentations from airline CFO/treasury/finance heads outlining their fleet and financing plans + over 50 airline representatives attending the unique CAPA Fleet Marketplace – the CAPA Airline Fleet & Finance Summit (2/3-Mar, Singapore) at Capella Sentosa is not to be missed.