BA TO RAISE $600M FOR LIQUIDITY BOOST
CASH British Airways is looking to raise £600 million ($987 million) in cash to increase its liquidity in the face of "difficult trading conditions" amid the ongoing economic crisis. More than half (£350 million) will be raised through a convertible debt issue. As at 30 June, the airline had around £1.25 billion of cash and general facilities of around £130 million. The additional funding will give it total liquidity of around £2 billion. The airline says that it has obtained facilities of more than $3 billion specifically against future aircraft deliveries.
HONG KONG LESSOR CLOSES $1BN IN DEALS
LEASES Hong Kong Aviation Company (HKAC), a recently launched consortium that includes HNA Group and Bravia Capital Partner, has closed nearly $1 billion worth of lease transactions during the past six months. The deals comprise three new Airbus A330-300s to be leased to Hong Kong Airlines in 2010 and 2011 and 10new Embraer 190s for lease to Tianjin Airlines between 2009 and 2011.
ELBIT TO ACQUIRE ISRAEL'S BVR SYSTEMS
SIMULATION Elbit Systems has signed an agreement to acquire the assets of Israeli training, simulation and debriefing specialist BVR Systems for $34 million, subject to regulatory approval. Chief executive Joseph Ackerman says the deal is in line with Elbit's long-term strategy of pursuing growth through mergers and acquisitions. "BVR Systems is a well-established company with advanced technology products that have proven operational success," he says.
LATEST IATA DATA FUZZY ON RECOVERY
DEMAND A potential bottoming out offalling travel demand is growing harder to determine as the International Air Transport Association's May data indicates premium travel numbers have declined for 12 consecutive months. In May, premium and economy passenger counts fell 24% and 8% respectively. Economy passenger levels dropped for the month after showing 0.3% marginal growth in April. IATA has also concluded that earlier signs of stabilisation in passenger numbers is more a reflection of a small rise in the average distance flown spurred by geographical shifts in travel patterns rather than a bottoming out of passenger demand.
UK DESIGN SPECIALISTS IN TIE-UP
TRAINING Aerospace design and production specialist Terry Gibson Associates has merged its aviation training business with UK aerospace design and certification firm AeroDAC. Terry Gibson Associates is a European Aviation Safety Agency Part 21 aerospace design certification and production consultancy covering audits and training and aerospace airworthiness. Managing director Terry Gibson says the move will allow "all aspects of aerospace design and production to be promoted from one source".
CHIEF EXECUTIVES APPOINTED AT THREE AIRLINES
LEADERS Three airlines have recently appointed new chief executives. Aer Lingus has named former TUI Travel airline head Christoph Mueller as its new chief executive, following the departure of Dermot Mannion. He will take over the helm on 1 October. Cathay Pacific Airways veteran James Tong will become chief executive of Hong Kong carrier Dragonair on 17 August, succeeding Kenny Tang. Meanwhile, German lessor and charter operator Germania has recruited Axel Trampnau, formerly of German carrier OLT, as chief executive with effect from 1 October. EasyJet Deutschland's former head John Kohlsaat joins as chief commercial officer.
Source: Flight International
