Aviation Trek

408 aircraft including the first A350F ordered at the Dubai airshow

Dubai, 18 November 2021 – In the first major airshow since the COVID-19 pandemic struck two years ago, customers demonstrated confidence in the recovery of the aviation sector and also in Airbus by placing orders and commitments totalling 408 aircraft (269 firm orders and 139 commitments). The agreements covered the full range of commercial aircraft families, including a first commitment for the A350F freighter derivative.

At a pre-show event, Airbus launched its latest global market forecast outlining progressively shifting demand from fleet growth to accelerated retirement of older, less fuel-efficient aircraft resulting in a need for some 39,000 new-build passenger and freighter aircraft. Of these,15,250 aircraft (around 40%) are for replacements.

With the UAE Universal expo showcasing themes on Mobility, Sustainability and Opportunity, on the eve of the airshow Airbus lit up the Burj Khalifa, the tallest building in the world, by displaying its Company purpose – “Pioneering sustainable aerospace for a safe and united world” – on the façade of this iconic Dubai landmark at a time when connecting with people and cultures has never been more important.

On the opening day of the show, Indigo Partners portfolio airlines placed a firm order for 255 A321neo Family aircraft, including 29 XLR. The order breakdown is as follows: Wizz Air 102 aircraft (75 A321neo + 27 A321XLR); Frontier 91 aircraft (A321neo); Volaris 39 aircraft (A321neo); JetSMART 23 aircraft (21 A321neo + 2 A321XLR).

The second day saw Air Lease Corporation sign a commitment for 111 aircraft covering the full range of aircraft families including the new A350 Freighter (25 A220-300s, 55 A321neos, 20 A321XLRs, four A330neos, seven A350Fs). Along with the orders, ALC and Airbus announced the first ever joint ESG scheme in aircraft procurement – a joint Sustainability Fund – to foster industry decarbonisation solutions.

On the third day, Jazeera Airways committed to 28 A321neos and Nigeria’s Ibom Air became a new Airbus customer with a firm order for 10 A220s.

On the defence side, Airbus sold two additional Airbus A330 Multi Role Tanker Transport (MRTT) to the United Arab Emirates Air Force and Air Defence, and secured a new export order for two A400M new generation airlifters from the Indonesian Ministry of Defence.

At the show, Airbus also highlighted its ambition to play a leading role in developing innovative and sustainable solutions for urban air mobility, leveraging partnerships and technologies to bring a product to the market by 2025.

@Airbus #A220 #A321neo #A330neo #A350 #DAS021 #AirbusDefence #AirbusSpace #AirbusHelicopters

Airlines

Alaska Airlines Acquisition of Hawaiian Airlines Reshapes the Air Travel Landscape

Alaska Air Group, Inc. (NYSE: ALK) and Hawaiian Holdings, Inc. (NASDAQ: HA) jointly announced today the execution of a definitive agreement, signifying Alaska Airlines’ acquisition of Hawaiian Airlines at a cash price of $18.00 per share. The total transaction value stands at approximately $1.9 billion, encompassing Hawaiian Airlines’ net debt of $0.9 billion.

The combination of complementary domestic, international, and cargo networks

This strategic union is poised to open up an array of additional destinations, providing consumers with increased choices in crucial air service options across the Pacific region, Continental United States, and globally.

The transaction is anticipated to establish a robust platform for growth and competition in the U.S., offering enduring employment opportunities, ongoing community investments, and a commitment to environmental stewardship.

Key Points:

Acquisition Overview:
- Alaska Air Group to acquire Hawaiian Holdings for $18.00 per share in an all-cash transaction, totaling approximately $1.9 billion.
- Combined company aims to maintain the strong, high-quality brands of Alaska Airlines and Hawaiian Airlines.
Fleet Expansion and Network Reach:
- Creates the fifth-largest U.S. airline with a fleet of 365 narrow and wide-body airplanes.
- Enables access to 138 destinations through combined networks and over 1,200 destinations via the oneworld Alliance.
Hub Development and Connectivity:
- Honolulu to become a key hub for the combined airline, offering expanded services to the Continental U.S., Asia, and the Pacific.
- Tripling the number of destinations from Hawai‘i to North America, while maintaining robust Neighbor Island service.
Commitment to Hawai‘i:
- Strong commitment to Hawai‘i, ensuring robust Neighbor Island air service.
- Aiming for a more competitive platform supporting growth, job opportunities, community investment, and environmental stewardship.
Employee and Union Commitment:
- Commitment to maintaining and growing the union-represented workforce in Hawai‘i.
- Immediate value creation with at least $235 million of expected run-rate synergies.
Investor Call and Timeline:
- Investor conference call scheduled for today at 5:00 p.m. ET / 2:00 p.m. PT / 12:00 p.m. HT.
- Anticipated closing of the transaction within 12-18 months.
Strategic and Financial Rationale:
- Complementary networks to enhance competition and provide greater choice for consumers.
- Preservation of both Alaska and Hawaiian Airlines’ brands on a single operating platform.
- Expected to deliver high single-digit earnings accretion for Alaska Airlines within the first two years.
Community and Sustainability Commitment:
- Focus on growth in union-represented jobs and strong operational presence in Hawai‘i.
- Commitment to environmental stewardship, aligning with Alaska Airlines’ five-part path to net zero by 2040.
Synergies and Accretion:
- Expected run-rate synergies of at least $235 million.
- Transaction multiple of 0.7 times revenue, approximately one third the average of recent airline transactions.
Conditions to Close:

Approval by regulatory authorities and Hawaiian Holdings, Inc. shareholders.
Expected to close in 12-18 months, with the combined organization based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.