Aircraft Finance & Leasing News - North America.

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New York (AirGuideBusiness - Aircraft Finance & Leasing News North America) May 6, 2012

AIA welcomes export control review of space systems and components

Today's release of the Defense Department assessment of the implications of normalizing export controls on satellites and related components gives decision makers in Congress crucial information on how reform can strengthen both our national security and space industrial base. Apr 30, 2012

Air Lease Air Lease Corporation Announces Closing of an Unsecured Revolving Credit Facility in Excess of $850 Million Priced at LIBOR +1.75%. Air Lease Corporation announced today the closing of a three year, unsecured revolving credit facility in excess of $850 million priced at LIBOR +1.75%, with no LIBOR floor. This facility was arranged by 6 joint lead arrangers and joint bookrunners, including J.P. Morgan Securities, Citigroup Global Markets, RBC Capital Markets, BMO Capital Markets, Commonwealth Bank of Australia, and Wells Fargo Securities. With the closing of this facility, ALC has now raised over $1.2 billion in unsecured bank financing. OALC is pleased to announce the closing of our first syndicated unsecured revolving credit facility. We are grateful for the continuing support from our banking group as we grow our business,O said Gregory B. Willis, Senior Vice President and Chief Financial Officer of Air Lease Corporation. OThis facility serves as a significant step forward in the development of our capital structure. Our focus remains on building a robust and flexible balance sheet that allows us to execute our strategic growth plan.O May 1, 2012

Air Lease Air Lease Corporation Announces Additional Aircraft Purchases and Lease Placements Including Its First Boeing 787-9 Lease Transaction. Air Lease Corporation announced today the following transactions covering 11 twin aisle aircraft and two single aisle aircraft including: The purchase of eight new Boeing 787-9 aircraft for lease to Vietnam Airlines. Deliveries of the eight 787-9 "Dreamliner" aircraft are scheduled for 2017 and 2018. This transaction marks ALC's longest lead time for a lease placement to date. The purchase from Macquarie Aviation of one Boeing 777-300ER on long term lease to Emirates (a new customer for ALC). One incremental A330-200 on long term lease to KLM delivering in 2013. One A330-300 from the ALC pipeline on long term lease to Sichuan Airlines delivering in 2013. Sichuan airlines also executed a four year extension on one A319 aircraft currently on lease from ALC. One Embraer 190 from the ALC pipeline leased to LAM (Mozambique) delivering in 2012. Apr 30, 2012

Air Lease, Vietnam Airlines, Boeing Aircraft lessor Air Lease said on Monday it had ordered eight new Boeing 787-9 Dreamliner aircraft worth $1.8 billion at list prices for lease to Vietnam Airlines. Deliveries of Boeing's new lightweight carbon-composite aircraft are scheduled for 2017 and 2018, the Los Angeles-based company said in a statement. Air Lease Corp had already placed an order for four 787-9s in December last year, according to the Boeing website. The company was founded in 2010 by Steven Udvar-Hazy, widely considered the pioneer of modern aircraft leasing. Udvar-Hazy co-founded International Lease Finance Corp in 1973, later sold it to U.S. insurer AIG and resigned to run his current company in February 2010. Air Lease announced the 787 order shortly after it also emerged as a previously unidentified buyer for Boeing's latest model, a revamped medium-haul jet called the 737 MAX. The deal is expected to involve 60 of the fuel-efficient jets and is worth some $6 billion at list prices. It is already included in a Boeing list of commitments that still must be converted to firm orders, according to the two sources who asked not to be named because negotiations remain confidential. The MAX, latest version of the best selling 737, which will feature new fuel-efficient engines when it comes to market in 2017, competes with the upcoming Airbus A320neo, which also will have new engines. Neither Air Lease nor Boeing (BA) would comment on the 737MAX order. Air Lease also has a pending provisional order for 36 A320neo-family aircraft and plans to close an order for a further 16 in January 2013. Industry experts believe Air Lease could announce the MAX order at the Farnborough Air Show in the UK in July. The Wall Street Journal reported on Monday that Air Lease was close to a deal to finalize the 737 order. Udvar-Hazy has criticized decisions, first by Airbus and then by Boeing, to upgrade their best-selling medium-haul jets with new engines rather than completely redesigning them. A redesign would have generated greater fuel efficiency but taken longer to bring to market. Boeing and its European competitor have notched up more than 2,500 firm and provisional orders between them for the revamped jets, which aim to provide 12-15 percent fuel savings. Speaking at a conference last week, Udvar-Hazy conceded neither manufacturer was likely to build an all-new model in the crucial 100- to 200-seat market soon, and indicated the leasing companies would throw their weight behind the new models. "For the time being, what we have is what we know," Udvar-Hazy told the AFCA air finance conference in Barcelona. Udvar-Hazy said he saw most demand for aircraft at the higher end of the 100- to 200-seat category, corresponding to the 180-seat Airbus A321 and the Boeing 737MAX 9. "The large end of the narrowbody spectrum is where most sales will occur," he said, adding the average number of seats per airline departure was gradually rising. Leasing companies tend to place orders where they think there will be most liquidity in the market. However, analysts say many buyers will wait for further clarity on the design of the 737MAX before completing orders. So far, Airbus leads the race to sell the new fuel-efficient variants. It has won 1,289 firm orders and 266 provisional ones, including the 36 Air Lease A320neo jets waiting to be finalized. Boeing, which considered a new plane but decided to catch up with Airbus by re-engining the 737 last summer, has sold 451 MAX aircraft. It has won provisional orders for 135 more from declared customers and over 400 that remain unidentified. United Airlines is finalizing a deal with Boeing to buy at least $10 billion worth of revamped and current models after Airbus was bumped out of the race, industry sources say. Continental, an all-Boeing airline which merged with United in 2010 to form the world's largest carrier, already operates the larger 737 models. The founder of AirAsia, Tony Fernandes, meanwhile said on Twitter that the Malaysian low-cost carrier was set for further expansion this week, prompting speculation that it could buy conventional A320s to ensure its short-term expansion. The airline placed a record order for 200 Airbus A320neo aircraft at the Paris Air Show last summer, but those enhanced jets will not enter service until 2015. Apr 30, 2012

American Airlines American Airlines Cuts Senior Staff in Bankruptcy Reorganization. American Airlines said that it is eliminating five officer positions in the third phase of its reorganization under Chapter 11 bankruptcy proceedings. Eliminating these five positions means the airline has cut its senior staff by 20 percent. Denise Lynn will become senior vie president of people, replacing Jeff Brundage. The new position of vice president of New York and international combines what had previously been two positions. Separately, American announced five officers who are retiring. They include David Brooks, president of cargo; Mark DuPont, who had held several positions, including leading airport services; Susan Garcia, who had been vice president of information technology; and Andrew Watson who had been vice president of customer technology. The position of vice president, operations finance and strategy planning, has been eliminated. Dough Herring, who had held that position, will be working on special projects through the end of the year. May 1, 2012

Atlas Air Atlas Air, Etihad ink ACMI agreement for 747 freighter services. Atlas Air Worldwide Holdings (AAWH), parent of ACMI cargo carriers Atlas Air and Polar Air Cargo, announced Thursday that its Atlas Air unit has inked an agreement with Etihad Airways to provide Boeing 747-400 freighter service for Etihad Cargo. The contract, which begins in June, is for one aircraft under a multiyear aircraft, crew, maintenance and insurance (ACMI). According to AAWH, this will be the first 747-400F in Etihad CargoOs global network and it will link Asia, Africa, Europe and other global trade lanes with Etihad AirwaysO hub in Abu Dhabi. May 1, 2012

Aviation Capital Group ACG Prevails in Case with Olympic Airlines. Aviation Capital Group (ACG) has prevailed in its litigation with Olympic Airlines (Olympic). In a case that has attracted considerable attention in the aircraft leasing industry, the English High Court rendered judgment today in ACGOs favor in ACG Acquisition XX LLC v Olympic Airlines S.A. The Court found that Olympic was bound by its acceptance of a leased aircraft and its statement that the aircraft satisfied the delivery conditions. As a result, Olympic is liable for unpaid rent and not entitled to damages. By upholding a lesseeOs acceptance of a leased aircraft, the judgment highlights the importance of commercial certainty to all participants in the aircraft leasing industry. In August 2008, Olympic, the now-defunct Greek state airline, accepted a Boeing 737-300 aircraft from ACG Acquisition XX LLC after carrying out extensive pre-delivery inspections. It executed a Certificate of Acceptance confirming that the aircraft complied with the delivery conditions in all respects. Both the Malaysian and Greek aviation authorities issued certificates of airworthiness for the aircraft. Subsequently, a fault was discovered with a spoiler cable. Following further inspections a number of other...

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