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North America Newsletter 13 January

North America Newsletter 13 January

AerSale Component Solutions Receives FAA Approval to Overhaul Landing Gear

AerSale Component Solutions announced it has received approval from the Federal Aviation Administration (FAA) to overhaul Boeing 737, 757, and 767 series aircraft landing gear. FAA approval to overhaul landing gear for the Airbus A320 family of aircraft is expected in the coming months.

Air Lease Corporation Announces Pricing of Public Offering of $1.4 Billion of Senior Unsecured Medium-Term Notes

Air Lease Corporation announced the pricing on January 7, 2020 of its public offering of $750.0 million aggregate principal amount of 2.30% senior unsecured medium-term notes due February 1, 2025 and $650.0 million aggregate principal amount of 3.00% senior unsecured medium-term notes due February 1, 2030 The sale of the Notes is expected to close on January 14, 2020, subject to satisfaction of customary closing conditions. The 2025 Notes will mature on February 1, 2025 and will bear interest at a rate of 2.30% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, commencing on August 1, 2020. The 2030 Notes will mature on February 1, 2030 and will bear interest at a rate of 3.00% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, commencing on August 1, 2020. Air Lease Corporation intends to use the net proceeds of the offering for general corporate purposes, which may include, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness.

Airbus announces increased investment, expansion of aircraft manufacturing in the U.S.

Airbus announced that, as part of its plan to produce 63 A320 Family aircraft per month in 2021, the company will expand its industrial footprint in the U.S. by increasing the production rate of A320 family aircraft at its Airbus U.S. Manufacturing Facility in Mobile to seven per month by the beginning of next year. This increase, and continued recruiting for the A220 manufacturing team, will result in a further 275 jobs added at the Alabama-based facility over the next year. The company will also invest another $40 million through construction of an additional support hangar on the site, bringing its total investment to more than $1 billion in the Gulf Coast city.

Atlas Air Worldwide Announces ACMI Placement with EL AL

Atlas Air Worldwide announced that its Atlas Air, Inc. unit and EL AL Israel Airline Ltd. have entered into an agreement that enables EL AL to expand its reach and cargo lift for its customers. Under the terms of the ACMI (aircraft, crew, maintenance and insurance) agreement, Atlas Air will operate a Boeing 747-400 Freighter for capacity on significant routes, mainly Liege – Tel Aviv, beginning in January 2020. The 747-400 will provide additional revenue cargo volume to serve the strong growth in demand across EL AL’s freight network.

Southwest Airlines Opens Its Largest-Ever Hangar Facility For Technical Operations At William P. Hobby Airport In Houston

Southwest Airlines officially opened a new maintenance facility at William P. Hobby International Airport, highlighting the importance Houston holds for the nation’s largest domestic airline* and underscoring its commitment to Safety while investing in the Bayou City. The 240,000 square foot maintenance complex, now the largest in the airline’s network, includes offices, training facilities, warehouse space, and a 140,000 square foot hangar. This allows for the nearly 400 Houston based Technical Operations Employees to work simultaneously on up to six 737 aircraft indoors and has space for an additional eight aircraft outside the hangar bays. It replaces Southwest’s smaller Technical Operations facility at Hobby Airport, which opened in 1988.

Spirit breaks ground on $250 million headquarters near Fort Lauderdale-Hollywood International Airport

Spirit Airlines held a ground breaking ceremony with Spirit Team Members, local and state officials, and business leaders to celebrate the construction of its new corporate headquarters in Dania Beach, Fla. Spirit is investing up to $250 million for the creation of a corporate campus of up to 500,000 square feet of space, and the airline plans to add 225 additional jobs over the next five years. In 2022, approximately 1,000 employees are planned to move from the company’s current facilities in Miramar to the new Dania Pointe site just minutes away from Spirit’s largest operating base, Fort Lauderdale-Hollywood International Airport (FLL). The development will include corporate offices, a new crew training facility with flight simulators, and a corporate training residence all designed for more streamlined workflow and quick access to the airport.

Willis Lease Finance Corporation Orders Up to Sixty CFM LEAP Engines

Willis Lease Finance Corporation announced that it has placed an order with CFM International for up to sixty LEAP engines with a value of nearly $900 million at  list prices. This includes both firm and option orders for LEAP-1A and LEAP-1B engines, which the Company will use to support its customers operating Airbus A320neo and Boeing 737 MAX aircraft. These newly ordered engines will begin delivering in 2020 and add to the eight LEAP engines the Company currently owns. “As we have said before, our customers continue to express their preference to borrow spare engines when they’re needed, rather than owning a large number of engines that will generally be underutilized,” said Charles F. Willis, Chairman and CEO. “This preference has supported utilization of the LEAP engines we already own, and we believe our ConstantAccess program, among others, will continue to drive efficiency, and thus value, for our customers. We are excited to show confidence in the market, support the LEAP program and invest in jobs, both domestically and abroad, by placing the largest order in the Company’s nearly 40-year history.”

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