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Sri Lanka's new prime minister, Ranil Wickremesinghe, has proposed privatising flag carrier Sri Lankan Airlines. Wickremesinghe is charged with negotiating a path out of Sri Lanka's economic crisis, which has it facing a SLR2.3 trillion deficit this year, he said. [Extracted from the article]

Emirates Airlines extended leases on 12 aircraft during its 2021/22 financial year to compensate for anticipated delivery delays of new aircraft, most of which were due to retire in the current year. Net loss for the airline group in the year to 31 March 2022 was AED3.9 billion, versus a loss of AED20.3 billion the year before. [Extracted from the article]

DAE has written off $538 million related to aircraft leased to Russian airlines. Our capital adequacy and liquidity metrics remain robust", commented Firoz Tarapore, chief executive officer of DAE. [Extracted from the article]

Air France-KLM Group recorded positive operating cash flow in 2021 as the carrier benefitted from recovering demand. "In the 2021 fourth quarter, for the first time since the beginning of the pandemic, the Air France-KLM Group managed to post positive financial results, and even above those of the 2019 second quarter", said Air France-KLM chief executive officer Benjamin Smith, adding, "But the pandemic is not yet behind us and this progress remains fragile." Air France-KLM finished the year with net cash and cash equivalents of €6.65 billion, representing a small increase through the 12 months. [Extracted from the article]

This was partly offset by the net release of $43 million in other lease-associated balances, resulting in a $261 million net impact to the income statement. Impairments on aircraft leased to Russian airlines have pushed Avolon to a first-quarter net loss of $184 million. [Extracted from the article]

The new Max aircraft will enter service from February 2023 and are part of plans to increase the airline's 737 fleet to 88 aircraft. In addition to its 737 fleet, Virgin Australia Group will also continue to operate Airbus A320 aircraft as part of its resources sector and contract flying operations. Virgin Australia is adding four Boeing 737 Max 8 narrowbodies to its mainline fleet of 737NGs. [Extracted from the article]

At the end of the first quarter, Embraer's commercial aircraft backlog stood at 315 aircraft, including 166 E195-E2s and 143 E175s. Embraer Commercial's revenue for the first quarter was down 28% year on year to $169 million, while group-wide revenue fell to $601 million from $807 million in the previous year. The reintegration of Embraer's commercial aircraft arm caused fewer deliveries in the first quarter as the Brazilian manufacturer closed its factory for most of January. [Extracted from the article]

Kuwaiti carrier Jazeera Airways has surpassed its pre-pandemic performance following its best-ever first-quarter result. The airline reported a net profit of KD3.8 million ($12.4 million) for the first quarter of 2022, compared with a net loss of KD5.2 million in the first quarter of 2021. As travel restrictions into Kuwait eased, Jazeera's passenger numbers and revenue shot up, while operating profit tripled to KD5.3 million, as compared with first quarter 2021. [Extracted from the article]

"Manana, Manana, manana" was Boeing's response to questions about the restart of 787 deliveries, Udvar-Hazy said. Boeing will not restart deliveries of its 787 widebodies until the second half of this year, it has told suppliers, according to I Reuters i . "Material uncertainty remains as to when Boeing will be able to recommence B787 deliveries given the number and complexity of the technical issues identified, especially given the heightened regulatory scrutiny that Boeing aircraft are now subject to in the wake of the MAX grounding", the Dubai-based lessor commented. [Extracted from the article]

TAP Air Portugal reported some green shoots for its operating business in 2021 despite another big annual loss - largely due to the sale of its Brazilian maintenance business. During the year, its fleet decreased by a net two aircraft to 94 aircraft, with the phasing out of two Airbus A330ceos, three A320ceos and two A319ceos. The group's net loss was €1.6 billion as it incurred roughly €1 billion of one-off costs due to its restructuring and the decision in late 2021 to sell off loss-making TAP M&E Brazil, which had been a condition of European Union approval for state aid. [Extracted from the article]

Data shows 17 A350s were due for delivery to Russia and Qatar this year and next Airbus may delay a ramp-up of A350 production due to the Russia crisis and its ongoing legal dispute with Qatar Airways, I Bloomberg i has reported, citing sources close to the OEM. Today (5 April), I Airfinance Journa i l flagged a report that Airbus had cancelled a contract for a third Qatar Airways A350-1000 after the carrier rejected delivery of the aircraft. [Extracted from the article]

Dubai Aerospace Enterprise (DAE) has closed a new $1 billion revolving credit facility, its first priced according to the Secured Overnight Financing Rate (SOFR). DAE said a "broad" group of banks were attracted to the facility, and that it was oversubscribed. [Extracted from the article]

Air New Zealand has launched a rights offer to raise NZ$1.2 billion ($837 million), the proceeds of which will be used to repay a government loan, strengthen its balance sheet, improve liquidity and help position itself for recovery. The equity raise comprises an underwritten two-for-one pro rata renounceable rights offer of new fully paid ordinary shares in Air New Zealand followed by a shortfall bookbuild process. The government has committed to participate for approximately NZ$602 million of new shares, ensuring the state maintains a majority shareholding of 51% in Air New Zealand after the rights offer. [Extracted from the article]

The funding was channelled via an equity investment and preceded a $750 million dual-tranche financing facility that Emirates agreed with government-owned bank Emirates NBD in October. For the six months to 30 September Emirates Airline reported a half-year net loss of AED5.8 billion, an improvement from AED12.6 billion in the prior-year period. Emirates expects to return to profit next year and repay some state support, its chief executive officer, Tim Clark, has told reporters. [Extracted from the article]

Russian airlines operate more than $10 billion worth of aircraft owned by foreign lessors, although the actual insurance liability is likely to be significantly lower, according to the chief executive of insurance market Lloyds of London, John Neal. Western governments could step in to help resolve insurance claims arising out of Russia's seizure of leased aircraft, the chief executive officer of Air Lease, John Plueger, has said during a JP Morgan conference. [Extracted from the article]

India will require 2,210 commercial aircraft over the next 20 years to meet annual passenger growth of 6.2%, Airbus has forecast. Only 51 of these are widebodies, a much smaller percentage than in similar markets, Airbus said, adding that India will need significantly more widebodies to open international markets going forward. [Extracted from the article]

Russia has transferred half of the foreign-owned aircraft operating for local airlines to its own registry, the country's prime minister has said. The site also reported transport minister Vitaly Saveleyev as saying that the country was seeking to find a resolution with foreign lessors, which had requested the return of more than 500 aircraft, including buying their aircraft off them, "but they don't want to do this". [Extracted from the article]

However, aviation insurance - and war insurance in particular - is more concentrated than many other types of insurance, meaning that Russia aircraft claims will fall on fewer shoulders than those related to natural disasters or the pandemic. To back up this point, Fitch noted that the credit profiles of insurers and reinsurers were "resilient" to non-life insurance claims of $30 billion from the coronavirus pandemic and natural catastrophe claims of $100 billion in 2021, thanks to strong capital and underlying earnings. [Extracted from the article]

War insurance policies protect aircraft owners against the risk of aircraft being seized or damaged during conflict. The repercussions of the Russia's war on Ukraine could see aircraft war insurers suffer a much bigger loss than that following the 9/11 terrorist attacks. [Extracted from the article]

Russian airlines are not cooperating with requests from foreign lessors to return aircraft in the wake of sanctions imposed on Russia, according to the I Irish Times i . On 7 March I Airfinance Journa i l reported that Russia had advised its airlines not to fly leased aircraft abroad due to the risk of them being seized. A source added: "There are no aircraft coming out of Russia at this point and there won't be any aircraft coming out of Russia. [Extracted from the article]

A Ural Airlines aircraft has been grounded in the Egyptian resort of Sharm El Sheikh "due to a foreign lessor contacting the Egyptian aviation authorities", Russian news source I RIA Novosti i has reported. On 5 March, Russia's Federal Air Transport Agency advised the country's airlines not to fly aircraft leased from foreign lessors out of the Russia due to the risk of them being seized. [Extracted from the article]

"The direct effects from expanded economic sanctions imposed upon Russia, including the European Commission's (EC) requirement that aircraft lessors terminate existing lease agreements with Russian airlines by March 28, should not materially pressure lessors' net margins, liquidity coverage levels or cash flows over the 12-24 month Outlook horizon", Fitch stated. Fitch Ratings has said that aircraft leasing and other sanctions on Russia should not unduly affect significant credit rating criteria for lessors for some time. [Extracted from the article]

Regarding recent EU sanctions that require lessors to terminate their contracts with Russian airlines within 30 days, Singapore-headquartered BOC Aviation said its policy "is to fully comply with all laws applicable to our business". Fleet Tracker shows that Nordwind's US- and EU-based lessors/managers include Aercap, Aircastle, Air Lease, Avenue Capital Management, Carlyle Aviation Partners and SMBC Aviation Capital. Repossessions of aircraft leased to Russian airlines have already begun, according to Russian media. [Extracted from the article]

Russian flag carrier Aeroflot has said that its strong domestic operations should tide it through the challenges of sanctions, devaluation of the rouble and Russia's exclusion from the SWIFT payment system. Among the many challenges that Aeroflot now faces, it highlighted the impact on future lease liabilities - almost all of which are denominated in euros or dollars - of the fall in value of the rouble. [Extracted from the article]

The Derby, UK-based engine manufacturer is launching a search for his successor. Investors have reacted negatively to news that Rolls-Royce's chief executive officer of eight years, Warren East, is to step down at the end of this year. Rolls-Royce also announced two departures from its board: Lee Hsien Yang and remuneration committee chair Irene Dorner. [Extracted from the article]

For the three months to 31 December 2021, the flag carrier reported EBITDA of JPY12 billion, but a pre-tax EBIT loss of JPY183 billion, versus EBIT of negative JPY294 billion in the year-ago period. Japan Airlines reported a return to positive EBITDA in its fiscal third quarter, while cash burn was halted after running at approximately JPY15 billion ($131 million) per month during the first two quarters. For the first three quarters of its financial year, JAL posted negative operating cash flow of JPY87 billion, compared with JPY180 billion in the prior-year period. [Extracted from the article]

El Al Airlines is preparing to buy fellow Israeli carrier Arkia in exchange for 10% of the flag carrier's equity, and up to 14% including options. The purchase was signalled via a non-binding memorandum of understanding, and must still be approved by Arkia's employees and Israel's competition regulator. [Extracted from the article]

"I am not a candidate nor have I been", Cruz told I The Deccan Herald i following a story on 3 February in I The Times of India i that he was "likely" to be offered the CEO position by Air India's new owner, Tata Group. Former British Airways and Vueling chief executive officer (CEO) Alex Cruz has denied reports he is in line to take the helm at Air India. [Extracted from the article]

"De Havilland Canada's products are unrivalled in the regional and utility turboprop segment of the industry and that is the product of its talented team of aviation professionals", said Chafe. Chafe will assume overall responsibility for the companies currently operating as Longview Aviation, Viking Air, Pacific Sky Training and De Havilland Canada. Longview Aviation Capital has consolidated its aviation businesses under the De Havilland Aircraft of Canada brand, to be led by new chief executive officer Brian Chafe. [Extracted from the article]

Embraer has said that "commercial aviation is again directly linked to Embraer's structure" following the completion of reintegration work ahead of schedule. Embraer had hived off its commercial activities in anticipation of a joint venture with Boeing, but the US-based OEM pulled out of the deal in April 2020. [Extracted from the article]

US lessors, meanwhile, can access a slightly lower withholding tax by establishing entities in Ireland for leases into China. Brazilian carriers have breathed a sigh of relief over recent news that the country plans to return the withholding tax rate on lease payments to 0% until 2024, before raising it gradually to 3% by 2026. For a long period, lease payments from Brazil to foreign lessors were exempt from withholding tax. [Extracted from the article]

Aslo from that date, Enrique Dupuy de Lome Chavarri will step down from the remuneration committee and become chair of the audit and risk committee. Barry Eccleston will become a senior independent director of Wizz Air following the decision of current senior director Simon Duffy to leave the role when his term expires on 28 January 2022. [Extracted from the article]

In its newly published environmental, social, governance (ESG) strategy, SMBC Aviation Capital said that by 2050 all of its fleet would be powered by sustainable aviation fuel, electricity or hydrogen. SMBC Aviation Capital wants to be among the first parties to invest in electric or hydrogen-powered commercial passenger aircraft under plans for its portfolio to reach net zero carbon emissions by 2050. [Extracted from the article]

Greg Rector, current managing director of Aerosure, will move into WTW as managing director of its Australasia aviation division, and will be joined by his colleagues from Aerosure. Willis Towers Watson (WTW) has bought Sydney-based Aerosure to expand its aviation insurance presence across Australia, New Zealand and the Pacific islands. Willis Towers Watson buys insurer Aerosure. [Extracted from the article]

United said that the equity stake gives it the option to buy up to 100 ZA2000-RJ hydrogen fuel cell powered engines. Zero Avia is accelerating development of its ZA2000 engine and will soon begin ground tests of its ZA600 in a 19-seat aircraft, with the aim of entering commercial service with this smaller engine by 2024. Hydrogen-electric propulsion company Zero Avia has raised a further $35 million of funding following an investment round led by new investor United Airlines. [Extracted from the article]

The adjustments and the €500 million redemption, which reduced the outstanding loan guaranteed by the French state to €3.5 billion, were agreed with the syndicate of nine banks behind the loan. Air France-KLM has extended the maturity of a state-guaranteed loan by two years after redeeming €500 million ($563 million) of the outstanding €4 billion. [Extracted from the article]

A I Financial Times i source said that airlines were likely to request an extension to pandemic loans, followed by a new government furlough scheme if tighter restrictions remain in place. The airlines are particularly concerned about the hit to demand from the reintroduction of Polymerase chain reaction (PCR) tests before and departure and after arrival, even for fully vaccinated passengers. Bosses of the UK's main airlines have signed an open letter to the prime minister Boris Johnson calling for extra financial support and the lifting of "haphazard" travel restrictions. [Extracted from the article]

India expects to settle about $8.2 billion of Air India debt by the end of March 2022, I The Hindu i has reported, citing a senior government official. Lessors, banks, oil companies and airports are the major creditors of the flag carrier, which the government agreed to sell to Tata in October. [Extracted from the article]

It added: "By the summer season, Belavia plans to replenish its fleet by acquiring ownership of aircraft, as well as concluding leasing agreements with companies that are not EU residents." Belarussian flag carrier Belavia plans to acquire more aircraft and agree leasing deals with lessors based outside the European Union (EU) in a bid to replenish its fleet. [Extracted from the article]

In the three months to 30 September, Aegean posted an EBIT profit of €70 million ($78 million), reversing a €35 million EBIT loss a year earlier, on sales of €334 million. Aegean Airlines' revenue more than doubled in the third quarter as the Greek carrier returned to profit. During the quarter, Aegean recorded pre-delivery payments of €43 million as part of a deal to accelerate deliveries of 22 Airbus A320/321neo aircraft to 2022 and 2023. [Extracted from the article]

These provided substantial liquidity to Air Canada and extended debt maturities out until near the end of the decade. Air Canada believes its business is now strong enough to withdraw from government support worth C$3.975 billion ($3.12 billion). [Extracted from the article]