News

Farnborough Air Show 2016 Airbus wins $35 billion of aircraft orders.

Reaffirming Airbus’ market-leading position and buoyancy of the industry;
· Airlines’ upsizing to A321neo – the undisputed ‘middle-market’ champion.

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During the 2016 Farnborough Air Show, Airbus won $35 billion worth of business for a total of 279 aircraft, covering by single-aisle and widebody aircraft families. The deals comprise firm orders for 197 aircraft worth $26.3 billion and commitments for 82 aircraft worth $8.7 billion.
Sales and commitments at Farnborough of the A320 Family were strong, with business accounting for a total of 269 aircraft worth $31.3 billion. This total comprises 187 firm orders worth $22.6 billion, and commitments (eg. MoUs) for 82 aircraft worth 8.7 billion. Notably the larger A321neo model took a lion’s share of the single-aisle announcements – with firm selections from three airlines for 140 aircraft, reflecting the trend for airlines to upsize to larger single-aisle aircraft.

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In the widebody segment Airbus won firm orders for 10 aircraft worth $3.4 billion comprising two A330-300s and eight A350-1000s. In addition to these new widebody orders, the show also saw the launch order from DHL Express for the A330-300 Passenger-To-Freighter conversion programme, in partnership with EFW and ST Aerospace.
John Leahy, Airbus’ Chief Operating Officer, Customers said: “Our orders this week at Farnborough confirm a buoyant industry in which we have once again surpassed our competitor. In addition, airlines upsizing to the A321neo shows that this aircraft is the undisputed ‘middle-of-the-market’ champion.”
Airbus is the world’s leading aircraft manufacturer of passenger airliners, ranging in capacity from 100 to more than 600 seats. Airbus has design and manufacturing facilities in France, Germany, the UK, and Spain, and subsidiaries in the US, China, India, Japan and in the Middle East. In addition, it provides the highest standard of customer support and training through an expanding international network.

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.