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North America Newsletter 17 February

North America Newsletter 17 February

Alaska Airlines, American Airlines Announce New West Coast International Alliance

Alaska Airlines and American Airlines announced an alliance to create more choice for West Coast customers. The expanded relationship between the airlines will offer customers several benefits, including the irst service from Seattle (SEA) to Bangalore, India (BLR) beginning October 2020. A new American route from SEA to the global business hub London Heathrow (LHR) will begin flying in March 2021. Harrison, Executive Vice President & Chief Commercial Officer of Alaska Airlines said “This alliance further opens the world for Alaska Airlines guests, whether traveling for business or pleasure and importantly for our employees, and the communities we serve, this West Coast international alliance enables Alaska’s continued independent growth. As we’ve shared, we’re focused on delivering for our guests over the long-term – which means continued profitable growth to enable new aircraft and new opportunities. This supports those goals, and is an important step on the path.”

Allegiant Announces Closing Of Repricing And Upsize Of Term Loan B Facility

Allegiant announced the closing of the amended agreement of its existing term loan with Barclays Bank PLC as administrative agent. Barclays Bank PLC, Goldman Sachs Lending Partners LLC and Credit Agricole Corporate and Investment Bank served as lead arrangers, bookrunners and syndication agents for the transaction. The amendment effects a repricing and upsizing of the Term Loan. With the repricing, the Company has achieved a highly beneficial interest rate reduction of 150 basis points, as the interest rate based on the London Interbank Offered Rate has been reduced to LIBOR + 3.0 percent. The Company estimates this will reduce interest expense on the initial loan balance by approximately $6.7 million per year.

Boeing and SPEEA Announce a Tentative Agreement on Four-Year Contract Extension

Boeing reached a tentative agreement with the Society of Professional Engineering Employees in Aerospace (SPEEA) on a new four-year contract extension that would run through 2026 covering approximately 18,000 engineering and technical employees, nearly all of whom are in Washington and Oregon. SPEEA’s Executive Board has endorsed the offer, which will be put up for a vote by the membership and is expected to run from Feb. 24 to March 9, 2020 via mail-in ballots. The current contract is set to expire in 2022

JetBlue Announces Leadership Appointments

JetBlue Airways announced several appointments to its leadership team, effective immediately. Andrea Lusso has been appointed vice president network planning, reporting to Scott Laurence, head of revenue and planning. In this role, Lusso will oversee the execution of the company’s network strategy through route planning and schedule planning. Dave Fintzen has been appointed vice president investor relations, reporting to Steve Priest, JetBlue’s chief financial officer. Sophia Mendelsohn has been appointed vice president sustainability & environmental social governance (ESG).

WestJet names John Weatherill, Vice President, Network Planning and Alliances

WestJet the internal appointment of John Weatherill to the role of Vice President, Network Planning and Alliances effective 14 February.

Willis Lease Announces Offering of $366.2 Million in Fixed Rate Notes

Willis Lease Finance Corporation announced that its wholly-owned subsidiary, Willis Engine Securitization Trust II, to be renamed Willis Engine Structured Trust V (“WEST”) on or prior to the issuance date of the Notes, proposes to offer $366.2 million in aggregate principal amount of fixed rate notes. It is expected that the Notes will be issued in three series, with the Series A Notes to be issued in an aggregate principal amount of approximately $303.0 million, the Series B Notes in an aggregate principal amount of approximately $42.1 million and the Series C Notes in an aggregate principal amount of approximately $21.1 million. The Notes will be secured by, among other things, WEST’s direct and indirect interests in a portfolio of 54 aircraft engines and three airframes, including 25 aircraft engines and three airframes which WEST will acquire from Willis pursuant to an asset purchase agreement. The remainder of the assets are currently owned by WEST.

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