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China Southern to raise over $2.8 billion to fund new aircraft purchase

China Southern to raise over $2.8 billion to fund new aircraft purchase

In a filing with the Shanghai Stock Exchange on May 31, China Southern Airlines stated that it intended to raise up to CNY17.5 billion yuan (USD2.46 billion) through a private placement of shares, with some of the funds going towards the purchase of fifty A320neo aircraft.

The state-owned airline will receive CNY5.25 billion (USD740 million) of the above amount for supplemental working capital, while CNY12.25 billion (USD1.72 billion) would be utilized to “introduce” the fifty new twinjets. The company “will adjust the funds that are raised” if the actual amount raised after expenses is less than the entire anticipated investment.

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The Guangzhou-based airline announced on the same day that it is prepared to offer CNY17.5 billion (USD2.5 billion) in new Shanghai shares and HKD2.9 billion (USD370 million) in new Hong Kong shares to chosen investors.

China Southern Airlines orders 20 Airbus A350 XWBs(Opens in a new browser tab)

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A private placement, in which additional stock is offered to certain investors to generate money, reduces the number of outstanding shares of a listed firm, frequently resulting in a temporary drop in the stock price.

According to China Southern, over CNY12.3 billion from the Shanghai share sale will be utilized to purchase 50 aircraft from the Airbus A320 Neo family, with the remaining funds being used to increase working capital. The funding for the general operations of the company will now include the profits from the Hong Kong private placement.

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According to China Southern, Airbus A320 Neo aircraft are among the most popular short- and medium-haul airplanes in the world. According to the catalog pricing on the European aircraft manufacturer’s website, which is dated January 2020, the 50 aircraft will cost approximately USD 6.4 billion.

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Singapore Airlines Ordered to Pay $3,580 to Couple over Faulty Seats

Singapore Airlines Ordered to Pay $3,580 to Couple over Faulty Seats
Image:Wikipedia

Following a dispute over defective seats during their voyage from India to Australia last year, Singapore Airlines (SIA) has been compelled to pay a sum exceeding S$3,500 to an Indian couple.

The District Consumer Disputes Redressal Commission in Hyderabad ruled in favour of Ravi and Anjali Gupta, who on May 23, 2023, had problems with their business class seats that were meant to automatically recline on their flight from Hyderabad to Australia via Singapore.

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Reports from media outlets in India highlighted the discomfort experienced by the couple, who were compelled to endure the entire journey without the benefit of reclining seats, despite having paid a significant amount which cost around 66,750 rupees (S$1,090) for each ticket, lodged a complaint during the flight, expressing their dissatisfaction with the situation.

Singapore Airlines initially offered compensation in the form of 10,000 KrisFlyer miles per person, which was declined by the passengers. As reported by CNA, Singapore Airlines apologised for any difficulty the technical failure may have caused and acknowledged the District Consumer Disputes Redressal Commission of Hyderabad’s ruling.

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SIA clarified that while the automatic recline feature on Mr. and Mrs. Gupta’s seats experienced a glitch, the manual recline function remained operational during the flight from Hyderabad to Singapore.

Regrettably, due to a fully occupied flight, SIA staff were unable to arrange alternative seating within the business class cabin. However, the airline asserts that its crew diligently monitored the couple’s comfort throughout the journey, offering to manually adjust the seats as needed.

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Cathay Pacific asks business class customers to bring their own cutlery

Cathay Pacific asks business class customers to bring their own cutlery

In an innovative move towards sustainability, renowned Hong Kong carrier Cathay Pacific has recently floated an unconventional idea to its business class customers.

Bringing their own cutlery sets onboard. This initiative, revealed through a member survey circulated within the airline’s “Cathay Lab” community – a platform comprising frequent business class travelers – has stirred a wave of curiosity within the aviation industry.

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With sustainability becoming an increasing concern in aviation, Cathay Pacific’s survey aimed to gauge passengers‘ willingness to partake in various eco-friendly practices during their journeys.

Among the initiatives presented, including refilling reusable water bottles and recycling plastic, the prospect of bringing personal cutlery garnered significant attention. Some members expressed practical concerns, questioning the feasibility of carrying cutlery through airport security and the potential inconvenience for passengers unaware of regulations.

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Others suggested that Cathay Pacific should simply provide reusable cutlery onboard instead. Furthermore, there were suspicions among some respondents that the BYO cutlery proposal might be a precursor to introducing additional charges, with one user humorously envisioning a scenario where the airline lends cutlery sets for a fee.

Despite the skepticism surrounding the proposal, Cathay Pacific’s exploration of innovative sustainability measures reflects a broader industry trend towards environmental consciousness.

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Air India and IndiGo’s Joint Initiative, Plans for 170 Wide-Body Aircraft

Air India and IndiGo's Joint Initiative, Plans for 170 Wide-Body Aircraft

In a bold move that underscores their confidence in India’s burgeoning aviation sector, Air India and IndiGo have revealed ambitious plans to acquire a combined total of up to 170 wide-body aircraft.

This strategic investment marks a significant shift in the country’s aviation landscape, as it brings European aircraft manufacturer Airbus into a domain traditionally dominated by American giant Boeing.

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With India positioned as one of the world’s fastest-growing aviation markets, the timing couldn’t be more opportune for such expansion endeavors. The aim is clear: to elevate India’s status as a global aviation hub by enhancing connectivity through direct flights between Indian cities and international destinations.

Currently, a substantial portion of India’s international air traffic relies on overseas hubs, particularly in the Gulf region. IndiGo’s announcement of firm orders for 30 A350-900 aircraft, with an option for an additional 70, signals its commitment to capturing a larger share of the long-haul market.

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Meanwhile, Air India’s comprehensive order, unveiled last year, encompasses 70 wide-body planes, including a mix of A350 and Boeing 787 models.

Recognizing the potential for disruption in the long and ultra-long haul segments, aviation consultancy CAPA India has emphasized the pivotal role Indian carriers can play in driving innovation and transformation.

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With the current combined fleet size of Indian airlines exceeding 700 aircraft, the stage is set for Air India and IndiGo to spearhead a new era of growth and connectivity in the Indian aviation sector.

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