11 Nov 2019

North America Newsletter 11 November

Allegiant Announces Aircraft Base in Des Moines, Bringing New Jobs and Growth Opportunities State and local officials joined executives from Allegiant Travel Company as the company announced plans to establish a two-aircraft base at Des Moines International Airport (DSM).  The announcement heralds the leisure airline's 20^th base of operations, a $50 million investment which will locate two Airbus A320 aircraft in Des Moines, bringing at least 66 new, high-wage jobs to the community.  The Las Vegas-based carrier will begin base operations at DSM on May 14, 2020. "For Allegiant to select Des Moines International Airport as a base of operations is a historic day for Des Moines, our airport and the two-and-a-half million passengers who fly through our City each year," said Des Moines Mayor Frank Cownie. "The financial investment and well-paying jobs this brings to our community is significant and most appreciated. And to those flight crews and ground personnel who will be our new neighbors, we say thank you for flying Allegiant and welcome to Des Moines." Alaska Air Group announces senior leadership advancements to position Alaska Airlines and Horizon Air for future growth Alaska Air Group announced three key leadership advancements to position Alaska Airlines and Horizon Air for future growth and success: Ben Minicucci, as president of Alaska, will be responsible for all commercial and operational duties including rollout and execution of the company's strategic plan; Gary Beck becomes Alaska's executive vice president and chief operating officer; and Joe Sprague returns to Air Group in the role of president of Horizon. All appointments are effective immediately. "Together, these talented executives bring more than four decades of expertise working across a wide variety of divisions at Air Group," said Brad Tilden, chairman and CEO of Alaska Air Group. "We've doubled in size in just the past five years. Their experience and leadership abilities will be crucial as we continue to grow and navigate new opportunities and challenges." ATSG Amends Bank Credit Facility Air Transport Services Group announced that it has extended its senior secured credit facility until November 30, 2024, expanded the facility’s revolver portion, consolidated and lowered its term loans, and reduced pricing to immediately lower interest cost. Other changes under the amendment provide the Company greater access and flexibility in future borrowings. Quint Turner, Chief Financial Officer of ATSG, said lender response to the latest amendment was excellent, and reflects the banks’ recognition of ATSG’s strong credit profile and its outlook for sustained, growing cash flow generation. "We appreciate the continued strong support from our banks. The favorable changes included in this amendment will lower ATSG’s interest cost on its secured facility by approximately $4.7 million per year at current borrowing levels, and provide the Company with greater flexibility to adjust the mix and scale of its debt capital structure in the future." StandardAero Achieves FAA Certification of San Antonio RB211-535 Test Cell; Now Processing Engines for Multiple Customer StandardAero has received FAA approval for acceptance testing of the Rolls-Royce RB211-535 turbofan engine at its maintenance, repair and overhaul (MRO) facility in San Antonio, Texas.  This achievement, which followed a test cell correlation effort undertaken in partnership with the engine manufacturer, marks StandardAero’s attainment of full capability on the RB211-535, in support of the life-of-type maintenance services partnership signed with Rolls-Royce in 2018. Under the partnership agreement, responsibility for RB211-535 in-service support is being transferred from Rolls-Royce’s Derby, U.K. location to StandardAero’s 810,000 ft² facility in San Antonio. StandardAero’s RB211 team had already received FAA and EASA certification for engine disassembly, cleaning, inspection, repair, assembly and test, and correlation of the San Antonio facility’s RB211 test cells now enables engine performance testing to be completed on-site, prior to engine redelivery to customers. The first A220 for Air Canada rolls out of the painting hangar Air Canada’s first Airbus A220 was unveiled last------- week when it rolled out of the painting hangar at the A220 final assembly line in Mirabel. In December, Air Canada will be the first Canadian airline to take delivery of this Canadian-designed and developed aircraft when it receives the first of its 45 A220s on order. The A220-300 for Air Canada will be configured in a 137-seat dual-class cabin layout. Now that the aircraft is decked out in Air Canada’s livery, it has moved to pre-flight activities in the A220 flight line hangar in Mirabel (IATA: YMX), before taking off for its first flight later this autumn. Acumen Aviation © 11 November 2019 All Rights Reserved.