03.07.2022 - 22:20 UTC
China's four largest carriers by fleet size have placed orders with Airbus (AIB, Toulouse Blagnac) for a total of 292 A320 Family aircraft, separate stock market filings dated July 1 have revealed.
Air China (CA, Beijing Capital) said it had agreed an order with the Europeans covering sixty-four A320neo Family jets while its Shenzhen Airlines (ZH, Shenzhen) subsidiary will acquire thirty-two. Deliveries to Air China will run from 2023 to 2027 while those for Shenzhen Airlines will arrive from 2024 to 2025. However, the introduction of new aircraft will be concentrated on beyond 2024.
Airbus gave both airlines a "relatively large" discount in the form of a credit memo that can be used to pay for Airbus aircraft, the final payment, or the purchase of Airbus products and services. Air China and Shenzhen Airlines will fund the acquisition via their own funds, commercial bank loans, and other financing methods respectively.
Air China and Shenzhen Airlines will use the incoming aircraft to both renew and grow their existing narrowbody fleets with the...
14.06.2022 - 21:59 UTC
Air France-KLM has completed a share capital increase raising approximately EUR2.256 billion (USD2.35 billion) (of which EUR1.611 billion (USD1.68 billion) was in cash) following the issuance of 1.928 billion new shares with a par value of EUR1 (USD1.04) at a subscription price of EUR1.17 (USD1.22) per share.
According to a stock market release, the Air France/KLM Royal Dutch Airlines parent's shareholding structure has been revised as follows:
% of the capital post Right Issue vs Pre-issuance
In terms of voting rights, the French and Dutch governments' positions have changed with the former controlling 28.5% (vs 28.1% pre-issuance) and the latter with 10.7% (vs 13.8%). China Eastern Airlines and Delta Air Lines...
26.05.2022 - 02:57 UTC
Air France-KLM has launched a capital increase to bolster its finances and repay more of the state aid it received during the pandemic, saying that now is the right time to seek shareholder support amid an invigorated air travel market, it said in a statement and prospectus released on May 24.
The rights issue for existing shareholders targets a gross amount of EUR2,255,645,459 euros (USD2.41 billion), with 1,927,902,102 new shares to be subscribed in cash, “by payment in cash or by offsetting receivables”, at a unit price of EUR1.17 (USD1.25) on the basis of three new shares for one existing share. It will run from May 27 to June 9, inclusive.
The issue is the Air France and KLM Royal Dutch Airlines parent's second in just over a year and was widely expected. It takes it closer to repaying Covid-era government support and meeting European Union conditions for taking part in future mergers and acquisitions - such as the imminent privatisation of ITA Airways (AZ, Rome Fiumicino).
“The company...
20.05.2022 - 02:05 UTC
Korean Air (KE, Seoul Incheon) is experiencing turbulence in obtaining approval from competition authorities in the United States, Europe, and China for its planned KRW1.8 trillion won (USD1.5 billion) acquisition of a 63.88% stake in rival Asiana Airlines (OZ, Seoul Incheon), the JoongAng Daily and Business Korea reported.
A South Korean government official told local media that “the US Justice Department strongly believes that a marriage between Korean Air and Asiana Airlines will impose restrictions on fair competition, so the merger will face difficulties in obtaining approval.”
The issue was reportedly discussed during a business trip to the United States by Cho Sung-wook, chair of South Korea’s antitrust agency the Korea Fair Trade Commission, in early April. The Justice Department reportedly told the Korean flag carrier to present detailed measures addressing certain competition issues, but Korean Air submitted its plans with a significant delay.
A spokesperson for Korean Air Lines cautioned: “This happens often and doesn’t mean the merger could be cancelled,” adding that the airline is “communicating with US regulators to...
