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North American Newsletter 28 September

North American Newsletter 28 September

Air Canada Announces Longer-Term Refinancings to Replace Short-Term Facilities

Air Canada announced that it recently completed two longer-term refinancing transactions for a total amount of approximately $1.52 billion, replacing short-term facilities. The first transaction consists of a committed Secured Facility totalling $787.7 million to finance Air Canada’s purchase of the first 18 Airbus A220 aircraft with a term of 12 years from delivery of each aircraft on a floating interest basis based on CDOR.

This equates to an interest rate of approximately 2.39% using current CDOR rates. As aircraft are financed under this new Canadian dollar Secured Facility, the Bridge Financing of $787.7 million for the same 18 Airbus A220 aircraft put in place in April 2020 will be repaid concurrently. Any amount left unpaid under the Bridge Financing will be repaid following the financing of the 18th A220 aircraft expected in the first quarter of 2021. The second transaction consists of a private placement of two tranches of Enhanced Equipment Trust Certificates, the proceeds of which were used to purchase equipment notes issued by Air Canada and secured by three Boeing 787-9 aircraft, three Boeing 777-300ER aircraft, one Boeing 777-200LR and nine A321-200 aircraft.

Cathay Pacific Airways Launches 12-week Cargo Service to Pittsburgh, Pennsylvania

Cathay Pacific Airways launched a temporary expansion of its operations in the Americas, with a 12-week cargo service linking Pittsburgh International Airport (PIT) with Southeast Asia, to supplement the airline’s existing network of 19 cargo stations throughout the Americas. The flight will be operated by a reconfigured Boeing 777-300ER.

Eco Helicopters Launching Urban Air Mobility Operations

Eco Helicopters announced plans to begin urban air mobility (UAM) charter flights in Southern California with a fleet of Robinson R44 Raven II helicopters that will be converted to electric propulsion as soon as the supplemental type certificate (STC) is FAA approved. Instead of waiting for the STC and then building an operating network with a fleet of electric-powered R44s.

Evaluators Wrap Up Work as FAA Head Preps to Fly Max

The Federal Aviation Administration notified key oversight committees in Congress that the U.S. agency, Transport Canada, the European Union Aviation Safety Agency (EASA), and the National Civil Aviation Agency of Brazil (ANAC) have concluded the Joint Operations Evaluation Board (JOEB) assessing Boeing’s proposed differences training and return to service training for the 737 Max. The communique added that FAA Administrator Steve Dickson plans to fly the Max on 30th September  after he and FAA deputy administrator Dan Elwell travel to Seattle earlier in the week to take the recommended training the JOEB evaluated.

GA Telesis Announces the Disassembly of an Additional CF6-80C2 Engine

GA Telesis announced the disassembly of a CF6-80C2 engine. The engine was a lease return sourced from the Company’s Asset Transaction Group lease pool and will be managed by GAT’s Component Solutions Group (CSG).

Global Crossing Airlines Signs LOI to Convert Five (5) Airbus A321s to Freighter

Global Crossing Airlines announced the signing of a letter of intent with ST Engineering’s subsidiaries, ST Engineering Aerospace America, Inc. and Elbe Flugzeugwerke GmbH, for the conversion of five Airbus A321 passenger aircraft to freighter. Subject to signing definitive agreements and the completion of the acquisition of the aircraft, the aircraft will be converted at ST Engineering’s facilities.

Aviation Capital Group Announces Closing of $450 Million Unsecured Term Loan

Aviation Capital Group announced the closing of a $450 million unsecured term loan with its parent company, Tokyo Century Corporation. Tokyo Century, with the support of the Japan Bank for International Cooperation and other Japanese financial institutions, borrowed this debt capital on behalf of ACG and lent the proceeds to ACG via an intercompany loan.

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