What Next for Alitalia After Air France-KLM Snub? Is Not a Normal Aircraft,” He Said

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What Next for Alitalia After Air France-KLM Snub? Is Not a Normal Aircraft,” He Said ISSN 1718-7966 SEPTEMBER 30, 2013 / VOL. 408 WEEKLY AVIATION HEADLINES Read by thousands of aviation professionals and technical decision-makers every week www.avitrader.com WORLD NEWS Lion Air in CSeries talks Lion Air, the Indonesian budget carrier, is in talks with Canadian airframer Bombardier over a po- Alitalia is facing a cash tential order for up to 100 of its crunch after larger CSeries CS300 jets, with major share- negotiations set to be finalised holder Air at the UK’s Farnborough Airshow France-KLM voted against next July. In meetings with Bom- a capital bardier Commercial Aircraft boss increase Mike Arcamone last week, Lion Air president Rusdi Karana said Alitalia the CSeries was ‘beyond his ex- pectation: “What they’re doing What next for Alitalia after Air France-KLM snub? is not a normal aircraft,” he said. Move to keep carrier under Italian control would be ‘hidden nationalization’ “This one is very special.” It is understood that Export Develop- The future is looking increasingly with its own internal troubles, last Industry minister Flavio Zamonato ment Canada would be involved grim for Italian flag carrier Alita- week announcing that it no long- told reporters that the government in financing the deal. lia after Air France-KLM, its larg- er expected to reach its break- was in talks with banks and other est shareholder, last week voted even target this year and that it investors in the domestic market $15.6bn for Airbus in China against proposals to launch a would slash a further 2,800 jobs. that would keep the company un- capital increase of at Airbus said it won orders worth der Italian control. least €100m. a total of $15.6bn for 160 new “Alitalia shouldn’t get into a situation where it An Italian industry aircraft at the 15th Aviation Expo The struggling airline is weak and has to accept whatever terms are analyst said that China in Beijing. VietJetAir, a low- needs a large cash in- offered because it has no negotiating power.” could mean that cost Vietnamese carrier, signed jection after posting Cassa Depositi e Flavio Zanonato, Industry Minister an MOU for up to 92 A320 fam- net losses of €294m Prestiti, the Italian ily aircraft worth $9.1bn at list for the first six “The government wants to understand the state-owned hold- prices, with new Chinese carriers months of 2013, on ing company, could Qingdao Airlines and Zhejiang top of some €840m situation better because we certainly can’t sell Alitalia at a discount.” come forward to Loong Airlines, and lessor BOC of losses accumulat- take a control- Aviation leasing company also ed since it was priva- Stefano Fassina, Deputy Economy Minister ling stake, which weighing in with new orders. tised in 2009. would be ‘the worst See page 3 for more details Air France-KLM’s decision comes It is understood to want to keep choice’. “This would mean going as a blow to Gabriele Del Torchio, its foothold in the Italian mar- back five years and nationalizing Pilot napping on the job the carrier’s third CEO in as many ket, but is decidedly lukewarm the company’s losses,” he said. years, who was brought in last over Del Torchio’s plan to develop A report from the British Airline Last week, the Alitalia board was April to turn the company around. Rome’s Fiumicino airport as an Pilots Association (BALPA) found informed of investment interest He had urged shareholders to ap- intercontinental hub, in compe- that 43% of the 500 commercial from China, Russia and the Mid- prove the capital increase as part tition with its own hubs in Paris airline pilots surveyed felt their dle East. Abu Dhabi airline Etihad, of a strategy to acquire larger air- and Amsterdam. abilities had been compromised already an Air France codeshare craft in order to focus on the more by tiredness at least once a month, Unions and politicians, too, had partner, was cited as a potential lucrative long-haul market. The while 84% said they had been expressed concerns about a possi- investor, with CEO James Hogan plan, he says, would help Alitalia compromised by tiredness during ble Franco-Dutch takeover of the hinting at future investments last to break even within two years the past six months. Nearly a third national carrier, saying that Italy week in Cologne, saying “We will and post a profit by 2016. admiitted they had woken to find was becoming a ‘supermarket’ consider more strategic partner- their co-pilot also asleep. But Air France-KLM is struggling for cash-rich foreigners. ships if they add value.” Engine Leasing Asset Management All Manufacturer Types Long, Medium & Short Term Leases • Operating Leases • Asset Management • Sales & Leasebacks All Manufacturer Types • Operating Leases Asset Management • Sales & Leasebacks All Manufacturer Types • Long, Medium & Short Term Leases • Operating Leases • Asset Management • Engine Trading • All Manufacturer Types • Sales & Leasebacks • Asset nagement • Long, Medium & Short Term Leases • Operating Leases • Asset Management • All Manufacturer Types • Sales & Leasebacks Operating Leases • Engine Trading • Long, Medium & Short Term Leases • All Manufacturer Types • Operating Leases • Asset Management Leases • Long, Medium & Short Term Leases • Operating Leases Manufacturer Types • Sales & Leasebacks • Engine Trading Long, Medium & Short Term Leases • Operating Leases • Sales & Leasebacks • Engine Trading • Asset Management • Long Medium & Short Term Leases • Engine Trading • Operating Leases • All Manufacturer Types • Asset Management um & Short Term Leases • Asset Management • Sales Leasebacks • All Manufacturer Types • Long, Medium and Short Term Leases • Operating Leases • Asset Management • Sales & Leasebacks • All Manufacturer Management • Long, Medium & Short Term Leases er Types • Operating Leases • Asset Management • Sales & Leasebacks • All Manufacturer Types • Long, Medium & Short Term Leases • Operating Leases • Asset Management • Sales Leasebacks ating Leases • All Manufacturer Types • Long Medium Short Term Leases • Operating Leases Asset Management • Engine Engine Trading • All Manufacturer Types Leasebacks • Engine Trading • Asset KEEPING YOU IN THE AIR Management • Medium & Short Term Leases • Operating Leases • Asset Management • All Manufacturer Types Sales & Leasebacks • Operating Leases • Engine Trading • Long Medium & Short Term Leases eases • All Manufacturer Types ent • Asset Management Medium & Short Term Leases • Operating Leases •Sales & Leasebacks • Engine Trading • Long, Medium & Short Term Leases • Operating Leases Sales & Leasebacks • Engine Trading • Asset Management • Operating Leases • Long, Medium & Short Term Leases Asset Management All Manufacturer Types Medium & Short Term Leases Management Term Leases Term www.elfc.com 3 AviTrader WEEKLY AVIATION HEADLINES AIRCRAFT & ENGINE NEWS A GOOD WEEK FOR AIRBUS VietJetAir to acquire up to 100 new A320 Family aircraft WestJet finalizes definitive purchase Vietnam’s VietJetAir signed a Memorandum of Understanding for up to 92 A320 deal for Boeing 737 MAX aircraft Family aircraft and will lease eight more from third party lessors. The agreement WestJet entered into a definitive purchase signed with Airbus covers for 42 A320neo, 14 A320ceo and six A321ceo, plus 30 agreement for 65 737 MAX aircraft from purchase rights for Boeing. This order was previously announced the A320 Family. Vi- on August 29, 2013 as a letter of intent to etJetAir is an existing purchase. This purchase agreement includes A320 operator, with commitments for 25 MAX 7 and 40 MAX 8 eight leased aircraft aircraft with substitution rights to the 737 already in service. MAX 9, with deliveries scheduled from 2017 The carrier took de- through 2027. As previously announced, the livery this week of its airline will substitute 15 of its existing Boe- ninth A320, delivered ing Next-Generation 737 aircraft orders cur- new from Airbus via rently scheduled to deliver between Decem- the US leasing com- ber 2014 and 2018, with Boeing 737 MAX pany AWAS. VietJet Air (above) will buy up to 100 Airbus A320 family jets Airbus aircraft, for a net increase of 50 committed deliveries to its fleet plan. Zhejiang Loong Airlines signs MoU for 20 A320 Family aircraft Zhejiang Loong Airlines, an airline based in Hongzhou, capital city of Zhejiang Province in Air Lease Corporation announces Eastern China, signed a Memorandum of Understanding (MoU) for 20 Airbus A320 Family placement of one Boeing 737-800 aircraft, including 11 A320ceo and nine A320neo. The airline has recently been approved with Ukraine International Airlines by the Civil Aviation Administration of China (CAAC) for passenger flight operation. Air Lease Corporation announced a long term lease agreement with Ukraine International Qingdao Airlines orders 23 A320 Family aircraft Airlines for one new Boeing 737-800 aircraft Qingdao Airlines, a newly established airline based in the Eastern Chinese coastal city with winglets, “sky” interior, and powered of Qingdao, Shandong Province, selected the best-selling Airbus A320 Family aircraft to by CFM56-7B engines, which is scheduled build up its fleet. The airline has signed a purchase agreement with Airbus for a total of for delivery in April 2015. 23 A320 Family aircraft, including five A320ceo and 18 A320neo. The deal is subject to approval from China’s central government. The first delivery is expected to begin in Garuda Indonesia starts taking deliv- 2016. The airline will start operation in 2014 with leased A320 aircraft. ery of new A330-300 fleet Garuda Indonesia, the national carrier of In- BOC Aviation orders 25 A320 family aircraft, including 12 NEOS donesia, took delivery of the first of its new BOC Aviation announced an order with Airbus for 25 A320 Family aircraft, including 12 fleet of 18 A330-300s at a special ceremony in NEOs, scheduled for delivery from 2015 to end of 2019. The order comprises A320 and Toulouse on September 26th. The new aircraft A321 variants for both CEOs and NEOs. This comes on following an earlier order for 50 will form a major element in the airline’s fleet A320 family aircraft, signed in December 2012.
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