Alaska Airlines secures nearly $1.2 billion in private funding
Alaska Airlines has secured nearly $1.2 billion in private loans to further secure its financial stability and future during the COVID-19 recovery period, while balancing the appropriate amount of liquidity. As part of an Enhanced Equipment Trust Certificate (EETC) offering, Alaska will use 61 of its owned aircraft as collateral to back the debt: 26 Boeing 737-800s, 16 Boeing 737-900ERs and 19 Embraer 175s. The aircraft will remain encumbered until the debt is repaid: Series A ($966 million) will be repaid by 15 August 2027, and Series B ($208 million) will be repaid by 15 August 2025.
Jetstream Aviation Capital delivers Saab 340B to NyxAir
Jetstream Aviation Capital announced 2nd July the delivery of one Saab 340B cargo aircraft to NyxAir of Tallinn, Estonia. The aircraft, serial number 340B-223, is the first of a multi-aircraft Saab 340 and Saab 2000 commitment between Jetstream and NyxAir. It was recently converted to cargo configuration at TABY Air Maintenance in Orebro, Sweden and will be used for NyxAir’s cargo charter operations throughout Europe.
Qatar Airways Launches Three-Weekly Flights to Toronto
Qatar Airways has commenced three weekly flights to Toronto Pearson International Airport with effect from 4th July. The flights will be operated by an Airbus A350-900 offering 36 seats in Business Class and 247 seats in Economy Class. Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said “In these difficult times, customers are looking for an airline they can rely on and trust. Our unrivalled experience in taking people home safely and reliably continues to provide the assurance people need. We have built a strong level of confidence with passengers, governments, trade partners, and airports as a trusted partner during this crisis and we intend to continue delivering on this mission.
United Airlines Adds Nearly 25,000 Flights in August
United Airlines announced 1st July it is tripling the size of its August schedule compared to its June 2020 schedule, adding nearly 25,000 domestic and international flights compared to July 2020, and plans to fly 40% of its overall schedule in August, as compared to August 2019. While travel demand remains a fraction of what it was at the end of 2019, customers are slowly returning to flying with a preference for leisure destinations, trips to reunite with friends and family, and getaways to places that encourage social distancing. United plans to add more than 350 daily flights from its U.S. hubs in August, including doubling the number of flights from New York/Newark compared to July.
United Announces Completion of MileagePlus Senior Secured Notes Offering
United Airlines announced 2nd July the completion of the private offering by Mileage Plus Holdings, LLC, a direct wholly-owned subsidiary of United that operates the MileagePlus program, and Mileage Plus Intellectual Property Assets, Ltd., an indirect wholly-owned subsidiary of MPH of an aggregate of $3.8 billion in principal amount of 6.50% senior secured notes due 2027. Concurrently with the issuance of the Notes, the MileagePlus Subsidiaries entered into a credit agreement providing for a term loan facility in an aggregate amount of $3.0 billion. Borrowings under the Term Loan Facility will bear interest at a variable rate equal to LIBOR (but not less than 1.0% per annum) plus 5.25% per annum. The MileagePlus Subsidiaries intend to loan the net proceeds from the offering of the Notes and borrowings under the Term Loan Facility to United, after depositing a portion of such proceeds in reserve accounts for the Notes and the Term Loan Facility.