Russian airline, Transaero, deep in financial difficulties, was supposed to be taken over by Aeroflot. Turns out Aeroflot won’t be doing that because the company cannot get the 75%+1 share of Transaero it had expected. The takeover has fallen through.
Transportation Minister Maxim Sokolov told reporters yesterday that the government will not allow the airline to even sell tickets. With its debts unable to be paid, and no state bailout, Transaero looks doomed. Yesterday a report in Russia said the state moved on a bankruptcy. The share price is down to 20 rubles (about $0.31). Could there be some shareholders holding out for something?
It would appear a power play is in the works. Aeroflot has no need to rush to rescue Transaero. Once the state withdrew a parachute, Transaero debt and shareholders were left hanging. Whereas they might have been given… Continue reading
Cargolux might be looking to buy five Boeing 747-8F; this agreement would cost $1.9bn (list). The plan is for a joint venture project between Cargolux and its 35% shareholder Henan Civil Aviation Development & Investment (HNCA) and be headquartered in Zhengzhou, China.
Plans for the new airline Cargolux China could be completed later this year, in order to begin flights in early 2017. Cargolux already operates a hub at Zhenghzhou. The city houses the main production base of assembler of the Apple iPhone, known as Foxconn.
The concept of a national carrier is becoming obsolete, as has been demonstrated by a number of European countries that have lost their national carriers, and a number that are hanging on for dear life through alliances with other carriers. In today’s environment, in which Open Skies have largely replaced bilateral treaties, the notion of a national airline is less important than it once was.
Nonetheless, a national airline does tend to bring prestige, jobs, economic development, and many believe it can provide an advantage in attracting tourists and companies. But if a national carrier is losing money, it cannot sustain itself for very long without government subsidies, which cannot last forever.
The Global Airline Competitive Environment has Changed
We’ve seen a consolidation of national carriers in many countries, and the loss of two in Europe, Malev in Hungary and Olympic in Greece. Of course, locally-based low… Continue reading
Sources in both China and Russia indicate that the formalization of the long-discussed agreement to build a new widebody aircraft in China using Russian intellectual property will be approved later this month and finalized by the end of the year.
Under the agreement, Russia will supply the intellectual property from the Ilyushin IL-96 widebody jet, which will serve as the underpinnings for the design of a new aircraft, currently names the ShFS by UAC and expected to commercially be named the COMAC 929 in China.
The joint venture will be a 50-50 split, with a total investment of about $13 billion required. The agreement was forged in 2014 during Vladimir Putin’s visit to China.
The ShFS is expected in 2 models, a 300 and 400 seat model with a range of 2,700 nautical miles to serve internal markets within China and Russia. Roll out of the first flying prototype is… Continue reading