Hong Kong Airlines undertook aggressive fleet expansion to launch long-haul low-cost routes. Diminished air travel in Hong Kong, caused by ongoing civil unrest, exacerbated the airline’s problems. To comply with new requirements set by Hong Kong’s civil aviation authority last week, the company obtained a $568 million USD capital injection from the HNA Group. This will allow it to continue operations.
In this edition of Morten Beyer & Agnew’s Insight Series, Anna Kopinski, mba’s Senior Associate of Asset Valuations, analyzes how the cargo market has fared in 2019, what aircraft are being used the most—and least—and how different metrics reveal divergent views on the state of the market. Later in this continuing series, she will assess the external factors which may influence the air cargo industry, such as US-China trade tensions.
Frequent Flyer Programs (FFPs) are an increasingly common tool airlines use to generate revenue and valuable customer data. As they were originally crafted as marketing tools, the industry is now witnessing the evolution of FFPs into valuable assets for airlines. In this edition of Morten Beyer & Agnew’s Insight Series, Anne Correa, mba’s Director of Airline & Airport Services, delves into the formation of FFPs for airlines and the noted importance of outside investors in helping airlines stay afloat, especially as FFPs enter a time of transparency and re-privatization.
Landing and departure slots are some of the most important assets in the aviation industry. When the demand to land or depart from a specific airport exceeds the infrastructure’s capacity, there is a value in the slots. IATA defines[1] airports with demand greater than supply as Level 3, or slot-coordinated. Exactly who is able to take […]
An Aviation Rivalry in Flux Ten years ago, Airbus and Boeing were regularly neck and neck when it came to the backlog of firm orders. However, for the last five years, Airbus has managed to receive more firm orders than its rival, with an aircraft backlog reaching a surplus of 7,000 compared with Boeing’s 6,000 […]
787 Trent 1000 Groundings to Increase With the summer holidays approaching, airline customers of Rolls-Royce’s Trent 1000 engines have expressed their concern with the downing of the 787 aircraft, and now are requesting lease agreements for other aircraft to fill in their gaps. These requests are effectively putting additional pressure onto Rolls-Royce to speed up […]
What’s Driving Values in 2Q 2018? REDBOOK’s ISTAT Certified Appraisal Team Has the Latest: For a look into current and historical data of the entire global aircraft fleet, mba launched STAR Fleet (System Tracking Aircraft Repository) within the REDBOOK platform. New Additions to REDBOOK 32 new engine variants and types have been added to REDBOOK […]
Japan Aviation Market Snapshot Powered by mba’s REDBOOK STAR Fleet Here are some of the insights derived from the report: Currently 717 aircraft are operated by Japanese carriers 21% of aircraft operated in Japan are leased 62% of the country’s fleet is operated by the top two carriers In 2017, there were 1,101K frequencies and […]
The COMAC C919 China has long been recognized as an engine for growth in the aviation industry. Its airlines are rapidly expanding and demand for air travel continues to skyrocket, for both domestic and international trips. Not wanting to cede the entirety of the increased demand for aircraft to Airbus and Boeing, the Chinese Government […]
Alternative Collateral In order to raise capital, many airlines issue debt or secured bonds backed by their aircraft and engines, but most airlines are sitting on another underutilized form of collateral: spare parts. Spare parts are a widely-accepted form of collateral, but few airlines have used this often appreciating asset-to-issue debt. There have been few […]