Aircraft Finance & Leasing News - North America

AirGuide Business, Sept 8, 2008

Bombardier, Porter Airlines

Porter Airlines has exercised existing options by confirming the delivery of a further two Bombardier Aerospace DHC-8-Q400 aircraft in 2009. These will bring the fleet size up to 16 aircraft. The aircraft order is significant as it demonstrates just how far the airline has come since its inaugural flight in October 2006, nearly two years ago. Sep 5, 2008

CIT Aerospace, Airbus

CIT Aerospace exercised options for eight Airbus A320s and two A319s, lifting its firm Airbus commitment to 199 aircraft (162 A320 family, 30 A330s, seven A350s), of which 100 already have been delivered. Delivery of the newly ordered aircraft, worth approximately $756 million at list prices, is scheduled to begin in 2012. Sep 5, 2008

Hawker Beechcraft

Machinists at Hawker Beechcraft have accepted a revised, three-year contract offer, ending a three-week strike that stopped production in Wichita and Salina, Kansas. Salary increases remain at 4% each year for three years and pension benefits will increase by $7 a month per year of service. The union says the breakthrough came with Hawker Beechcraft agreeing to freeze employee contributions to healthcare, vision and dental premiums at 2008 rates over the next three years, taking on rising costs itself: "That makes our raises real raises." Sep 1, 2008

Midwest Airlines, Boeing

Midwest Airlines reached an agreement in principle with Boeing Capital Corp. on renegotiated leases for its fleet of 717s. It will continue to fly nine of the original 25 717s it had on lease while returning 16 to Boeing this fall. "Operating a more fuel-efficient, flexible mix of aircraft makes good economic sense in this new energy environment," Hoeksema said, adding that Midwest will continue negotiating with its pilots and flight attendants "on concessions necessary to align its labor costs to the marketplace." The agreement with Republic is for 10 years. All fuel will be purchased by Midwest. Republic said it also will loan Midwest an additional $10 million if "certain milestones" are achieved, adding that "the loan(s) is collateralized by all of Midwest's unencumbered assets." Sep 5, 2008

Midwest Airlines, Republic Airways

Midwest Airlines signed an agreement with Republic Airways yesterday under which the Indianapolis-based regional will operate Midwest Connect flights on 12 76-seat E-170s beginning Oct. 1, part of what Midwest Chairman and CEO Timothy Hoeksema said is "significant progress in its voluntary restructuring plan." He said the carrier also secured $60 million in additional financing, including commitments from TPG Capital and Republic, which agreed to give Midwest a one-year, $15 million loan as part of the air services agreement. He added that Northwest Airlines will continue its codeshare and frequent-flier program arrangements with Midwest. Sep 5, 2008

Porter Airlines, Bombardier

Porter Airlines exercised two Bombardier DHC-8-Q400 options for delivery next year. Aircraft will be the 15th and 16th in the Toronto City Centre-based regional's fleet. It currently operates six. Sep 3, 2008