SAS emergence from restructuring proceedings

SAS announces that the company has successfully completed its restructuring proceedings and emerged from chapter 11 in the US and from Swedish company reorganization, concluding in the investment of USD 1.2 billion. This marks the start of a new era for SAS. The company emerges as a competitive and financially robust airline with a strengthened capital structure, a highly dedicated and experienced management team, a commitment to drive transformational change and sustainability in aviation, and an attractive new customer offering together with the global airline alliance SkyTeam. The new principal owners of the reorganized company, Castlelake, Air France-KLM, Lind Invest and the Danish State, have agreed to appoint a new Board of Directors for SAS, which will be led by Kåre Schultz, as Chairman of the Board.

SAS initiated its restructuring proceedings in order to accelerate the implementation of its comprehensive business and financial transformation plan, SAS FORWARD. The aim of SAS FORWARD is to achieve a full transformation of SAS’ business, including optimization of its network and fleet, achieving unit cost competitiveness and building a sustainable future. Over the course of the restructuring proceedings, SAS has successfully restructured more than USD 2 billion of debt, adjusted its aircraft fleet and related costs and reached agreements with key stakeholders, creditors and vendors. SAS has also successfully concluded a competitive exit financing solicitation process, selecting Castlelake, Air France-KLM and Lind Invest, together with the Danish State, as the winning bidder consortium. The exit financing transaction included a total investment in reorganized SAS of USD 1.2 billion, comprising of USD 475 million in new unlisted equity and USD 725 million in secured convertible debt.

Nearly all creditors voting in the respective restructuring proceedings in the US and Sweden supported the restructuring plans. The restructuring proceedings in both the US and in Sweden have now been successfully completed and distributions to creditors entitled to receive any cash, equity or contingent value notes (as further described in SAS’ previous press releases) are expected to take place during the coming month.

SAS emerges as a financially robust company with a strengthened capital structure and with substantial liquidity. The company has also made significant progress with operational improvements and in building a competitive business:

A continued positive development for passenger demand with 18 million passengers traveling with SAS so far in fiscal year 2024 (Nov 2023 – July 2024), a 6.5 percent increase from the same period in fiscal year 2023.

The SAS EuroBonus program now has almost 8 million members and continues to be the leading loyalty program in Scandinavia.

SAS recorded its highest-ever monthly profitability in July 2024, demonstrating steady progress in achieving the targeted annual cost reduction of approximately SEK 7.5 billion in the SAS FORWARD plan.

Anko van der Werff, President & Chief Executive Officer of SAS, comments:  “This is a historic day that marks the start of an exciting future for SAS’ customers, partners and colleagues. We have successfully completed our restructuring proceedings and we are now entering a new era. It has been a complex process and I’m thankful for the constructive collaboration with creditors and partners, for the valuable support from the Board, as well as impressive efforts, energy and enthusiasm throughout our organization. Efforts that made it possible to save and restart one of the finest companies in Scandinavia. Now, we must look ahead and complete the transformation that we have started, continue our commitment to achieving net-zero emissions by 2050, and take advantage of the opportunities in a growing market. We have an excellent team, we are shortly joining the SkyTeam alliance family, and we have every opportunity to remain a leader in our industry for generations to come.”

Jet2 and Jet2CityBreaks launch first ever Christmas Markets programme from Bournemouth Airport for Winter 25/26

Jet2 and Jet2CityBreaks have launched their first-ever Christmas Markets programme from Bournemouth Airport, with customers and independent travel agents now able to book festive flights and trips for Winter 25/26 to Prague and Vienna for the very first time.

In response to strong demand for Christmas Market getaways, the leading leisure airline and UK’s leading operator of European city breaks have put a brand-new mini-series of flights and trips on sale to these two festive favourites from new UK airport base – Bournemouth Airport.

Sprinkling plenty of festive cheer into their Winter 25/26 programme, Jet2 and Jet2CityBreaks will operate dedicated services from Bournemouth Airport to these magical Christmas destinations between November and December 2025.

The release of the programme today gives local holidaymakers the chance to book ahead and give themselves a real treat, by visiting some of the most dazzling of Christmas Market destinations in Europe.

Jet2 and Jet2CityBreaks’ programme of Christmas Market flights and trips have continued to enjoy enormous success from other UK airports over the years and given the reaction to the arrival of the companies at their newest base, the launch of this new Christmas Markets programme from Bournemouth Airport is expected to be a huge hit.

Air France-KLM buys 19.9% of SAS

The Air France-KLM Group completes the acquisition of a non-controlling stake in the share capital of SAS AB. Extensive commercial cooperation to begin September 1, 2024

The Air France-KLM Group announced this week that it has successfully completed the acquisition of a 19.9% non-controlling stake in the share capital of SAS AB. This operation follows the receipt of regulatory approvals in Europe and the United States.

In parallel to the financial transaction and as previously announced, Air France-KLM and SAS have signed far-reaching interline and codeshare agreements to connect their hubs and networks. These agreements, which cover reciprocal loyalty program benefits, will enter into force as early as September 1, 2024. On the same day, SAS will join the Skyteam alliance, of which Air France and KLM are founding members.

Benjamin Smith, The Air France-KLM Group CEO said: “We are pleased to have completed this strategic transaction. SAS will enhance the Group’s footprint in the Scandinavian markets. SAS, Air France and KLM customers will now have a larger number of destinations via codeshares. Skyteam will immediately gain a new strategic member.”

This transaction was concluded by the Air France-KLM Group as part of a consortium of investors which also includes Castlelake L.P. on behalf of certain funds or affiliates, Lind Invest ApS, and the Danish State.

The members of the Consortium now effectively hold an aggregate 86.4% stake in the share capital of the reorganized SAS AB (exclusive of the recovery by the Danish State in its capacity as a creditor of SAS and pursuant to SAS’s restructuring plans), having invested $1.2 billion USD in the company, by subscribing for $475.0 million USD of common shares and by purchasing $725.0 million USD of senior secured convertible notes.

The Air France-KLM Group itself invested a total of $144.5 million USD in SAS AB, by subscribing for $109.5 million USD of common shares and by purchasing $35.0 million USD of senior secured convertible notes.

Omni Air International partners with New England Patriots

Omni Air International, a wholly owned subsidiary of Air Transport Services Group, Inc. announced a long-term agreement with the New England Patriots professional football team under which Omni will operate the Patriots’ two Boeing 767-300 passenger aircraft for team travel and other charter flights including humanitarian and goodwill flights on behalf of the Kraft family, and as available for Omni's other charter customers.

"This agreement brings together industry-leading organizations that value their people, patriotism, professionalism, and a culture of success," said David Ray, president of Omni. "We are proud to include the Patriots’ aircraft in support of our clientele."

Both aircraft reflect the Patriots team colours of red, white and blue, while the team’s six Super Bowl championship Lombardi Trophies are proudly displayed on their tails.

"The uniqueness of the aircraft is attractive across our diverse customer base," said Trisha Frank, vice president of government and commercial business at Omni. "Particularly unique is the cabin layout of aircraft N36NE, which offers 80 business class seats among its total complement of 203."

In addition to providing custom chartered solutions for sports teams, Omni has supported film crews, music tours, corporate and leisure travel, emergency evacuations, and government and military transport throughout the world on short notice.

Omni Air International is an FAR Part 121 and IOSA registered airline headquartered at Tulsa International Airport in Tulsa, Oklahoma. Omni specializes in ACMI leasing and worldwide passenger charter flights to more than 80 countries a year, principally for U.S. and allied governments, scheduled airlines, and charter customers, using its exceptional fleet of Boeing 777-200ER, 767-300ER, and 767-200ER aircraft.

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Aviation Capital Group delivers a Boeing 737-9 MAX to United Airlines

Aviation Capital Group, a premier global full-service aircraft asset manager, announced the delivery of one Boeing 737- MAX 9 aircraft to United Airlines. Featuring CFM International LEAP-1B engines, this is the first aircraft scheduled to deliver to the airline as part of a multiple-aircraft sale-leaseback transaction between ACG and United Airlines.

“It is with great enthusiasm that we commemorate the delivery of United Airlines’ latest Boeing 737-9 MAX with Aviation Capital Group. This milestone marks a significant achievement in our successful partnership with United Airlines. Our collaboration continues to strengthen, driven by shared values and a mutual commitment to customer satisfaction. The Boeing 737-9 MAX is a testament to our dedication to advancing a greener, more sustainable future in aviation,” said Carter White, Executive Vice President and Chief Commercial Officer of ACG. “We eagerly anticipate the future as we continue our journey with United Airlines, setting new industry benchmarks for service excellence and environmental stewardship. With our shared values and commitment to innovation, we are confident that we will achieve even greater milestones in the years to come.”

“We are excited to take delivery of this 737-9 MAX, an important addition to our fleet.  Our partnership with the team at Aviation Capital Group has been instrumental in supporting our fleet strategy, particularly as we invest in more fuel efficient, customer-friendly aircraft,” said Pamela Hendry, Vice President and Treasurer of United Airlines.

ACG specializes in commercial aircraft leasing and aviation finance. In addition to aircraft leasing services, we provide aircraft asset management solutions tailored to meet our customers’ fleet management needs.

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New Air India service linking Bangalore with London Gatwick.

Passengers across London and the South East can now access a new Indian destination this summer from London Gatwick, with the launch of Air India's direct service to Bengaluru/Bangalore. 

This new route, which will operate five times weekly from the South Terminal, is London Gatwick’s fifth non-stop connection to India, joining existing services to Goa, Kochi, Ahmedabad, and Amritsar. 

These Air India flights, alongside TUI’s service to Goa, means there are now 19 flights per week between London Gatwick and India.  

London Gatwick is actively working to double connectivity with India over the next five years, recognising the strong economic and cultural links between the countries. Key priority destinations for future growth include Delhi and Mumbai. 

Stephanie Wear, VP Aviation Development, London Gatwick said: “This new service to Bengaluru is excellent news for both passengers and businesses across London and the South East. This city’s dynamic tech industry and cultural significance makes it a fantastic addition to our route network.  It’s set to be a popular service, providing fantastic opportunities for both tourism and trade.” 

London Gatwick is investing in its long-term future, and its planning application to bring the airport’s existing Northern Runway into routine use is nearing the end of the Planning Inspectorate’s examination phase. This low-impact plan will improve resilience, reduce delays, and provide a significant boost to the national and regional economy by supporting trade, tourism, and new jobs.     

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Strong air cargo demand grows in July

The International Air Transport Association (IATA) released data for July 2024 global air cargo markets showing continuing strong annual growth in demand.

•    Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 13.6% compared to July 2023 levels (14.3% for international operations). This is the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021.

•    Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.3% compared to July 2023 (10.1% for international operations). This was largely related to the growth in international belly capacity, which rose 12.8% on the strength of passenger markets and balancing the 6.9% growth of international freighter capacity. It should be noted that the increase in belly capacity is the lowest in 40 months whereas the growth in freighter capacity is the highest since an exceptional jump was recorded in January 2024.

"Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping. With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends,” said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

•    In July, the Purchasing Managers Index (PMIs) for global manufacturing output indicated expansion at 50.2. Meanwhile, the global new export orders PMI continued to hover below the 50-mark at 49.4, a marker for contraction.

•    Industrial production stayed level in July month-on-month and global cross-border trade increased 0.7%.

•    Inflation remained relatively stable in July in the US, Japan, and the EU, with inflation rates of 2.9%, 2.8%, and 2.8%, respectively. Meanwhile, China’s inflation rate increased 0.3 percentage points to 0.6%, the highest level in five months. 

July Regional Performance

Poland and Lockheed Martin celebrate the debut of Poland's 1st F-35A "Husarz"

Lockheed Martin presented Poland's first F-35A Lightning II to the Polish government during a rollout ceremony at Lockheed Martin's F-35 production facility. This event marks a significant milestone in the Polish Air Force's history and strengthens the alliance between the United States and Poland, a key NATO ally.  

"Over more than 100-years of the Polish Air Force, there have been many generations of pilots and aircraft. I am proud to be part of history today, introducing the F-35 as the next generation, which will protect and defend Poland's future for many years. We are joining a strong coalition of 5th generation fighters across Europe, bolstering air superiority through allied deterrence," said Major General Ireneusz Nowak, Inspector of Polish Air Force.

As the most advanced 21st Century Security® solution, the F-35 is the NATO aircraft of choice and will help extend Poland's strong leadership in NATO through investment in military modernization and enhanced participation in foreign missions. Poland is one of several NATO nations to invest in the allied deterrence of the F-35. With its unmatched interoperability, Poland's F-35s, named "Husarz" to pay homage to a calvary unit from the country's military past, will connect assets across domains to increase situational awareness for Poland and its key European partners.

Diehl Aviation celebrates the beginning of construction in Mexico

In a festive ceremony held on August 27, 2024, representatives of the Mexican government and the aviation supplier Diehl Aviation laid the cornerstone for Diehl Aviation's new site in Mexico. This marks the official start of the construction work and the company getting closer to its American customers. Numerous government representatives from Mexico took part in the festivities: By participating in person, Francisco José Quiroga Fernández (Mexican ambassador in Germany), Genaro Montes Díaz (Undersecretary of Sustainable Development of the State of Querétaro in representation of Governor Mauricio Kuri González), Alejandro Rolland (Querétaro´s Director of Industrial Development) and Claudia Martínez Guevara (Mayor of El Marqués) acknowledged this important milestone for the region.

The new site in the PyMe Industrial Park is near Santiago de Querétaro, the federal capital, and will initially encompass over 8,200 square meters of production and office space. An expansion by an additional 4,000 to 6,000 square meters is planned for a second phase. The construction project will mainly be planned and carried out by the company Grupo Chufani. The start of production is envisaged for 2025. At first, around 30 employees will be working at the new site. This will be increased to around 500 employees over the medium term. The first product that Diehl Aviation will produce in Mexico is extra-spacious luggage compartments for the Airbus A220. The A220 is assembled in Mirabel, Québec and Mobile, Alabama, USA.

Michael O'Leary wants a two drink limit for every passenger at airports.

The vocal boss of Ryanair, Michael O'Leary wants a two-drink alcohol limit for every passenger at airports to avoid drunken passengers behaving badly. 

O'Leary used the UK's Daily Telegraph to issue a case that introducing alcohol limits at airports would help tackle a rise in disorder on flights. He claimed violent outbursts were occurring on a weekly basis due to alcohol. He also claimed it was especially worse when alcohol was mixed with other substances.  "In the old days, people who drank too much would eventually fall over or fall asleep. But now those passengers are also on tablets and powder. It's the mix. You get much more aggressive behaviour that becomes very difficult to manage." he told them.

O'Leary claimed it was difficult for his staff to identify inebriated people at the gate, even after Ryanair cabin crew searched passengers' carry-on bags, "As long as they can stand up and shuffle they will get through. Then when the plane takes off, we see the misbehaviour".

Of course, Ryanair reserves the right to sell as many alcoholic drinks to passengers during flights, whilst restricting the rights of airport retail establishments from selling more than two drinks. 

The carrier makes almost half of its profits from the sales of ancillary products in flight and insisting on a two-drink limit at airports would definitely help those profits rise. 

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Qatar Airways Acquires 25 per cent Stake in Airlink

The investment will further cement Qatar Airways’ position as a key driver in realising economic and business potential on the African continent.

Qatar Airways Group has acquired a 25 per cent stake in Southern Africa’s premier independent regional carrier, Airlink. The announcement is a continuation of the multi-award-winning airline’s ambition to further develop its operations across the African continent.

The investment in Airlink – which flies to more than 45 destinations in 15 African countries – will enhance a code-sharing partnership between the two airlines. The deal will bolster Qatar Airways’ Africa growth strategy and cement its role as a key driver to the continent’s economic success.

On the announcement, Qatar Airways Group Chief Executive Officer, Engr. Badr Mohammed Al-Meer, said: “Our investment in Airlink further demonstrates how integral we see Africa being to our business’ future. This partnership not only demonstrates our confidence in Airlink, as a company that is resilient, agile, financially robust and governed on sound principles, but also in Africa as a whole, showing huge potential that I am delighted we are able to help start realising.”

Condor gets another new Airbus A321neo from ACG

Aviation Capital Group LLC, a premier global full-service aircraft asset manager, announced the delivery of one A321neo to Condor Flugdienst. Powered by the ultra-efficient Pratt & Whitney GTF engines, this is the third of four aircraft scheduled to deliver to the airline.

ACG specializes in commercial aircraft leasing and aviation finance. In addition to aircraft leasing services. The company provides aircraft asset management solutions tailored to meet the needs of its customers’ fleet management needs. 

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London Gatwick reports strong start to 2024

London Gatwick reports strong start to 2024

The continued collaboration with partners and the hard work of front-line colleagues has supported London Gatwick's continued recovery and delivered a successful start to the year, the airport said when publishing its interim financial results.

2024 interim results include:

• 19.9 million passengers travelled through the airport, an increase of 7.7% compared to the same period in 2023
• Revenue at £488 million, up 15.3% compared to 2023. Includes £239 million in aeronautical income and £249 million from non-aeronautical sources, such as retail and parking
• EBITDA at £268 million, up 13.9% compared to 2023, with net profit for the period at £106 million, up 33.8%

Stewart Wingate, Chief Executive Officer, London Gatwick, said: “With the growing demand for travel, we are experiencing one of our busiest summers yet. Thanks to robust planning and close collaboration with our partners we’ve had a strong start to 2024, ensuring a reliable and enjoyable experience for our passengers.

“I am delighted that we have once again achieved good service levels, as evidenced by meeting 100% of our service measures. At the same time, through our Northern Runway Project, we are demonstrating our commitment to growing sustainably, in line with our Decade of Change sustainability strategy and government policy.

“Our teams have worked incredibly hard to achieve these results. As we continue to grow our network and offer more choice for passengers, we are working towards our vision to be the airport for everyone, whatever your journey.”

Strong financial performance as traffic continues to grow 

Peak holiday times are continuing to attract more people to travel, representing a 90% recovery on 2019 levels.

A focus on developing new long-haul routes across the Middle East, Asia and North America is attracting a wider range of passengers and continues to build on the airport’s vision to be the airport for everyone. Recent new services include the June introduction of Singapore Airlines flights from London Gatwick plus new routes by flag carriers to key cities across China and India. 

Sustainable growth

Hong Kong After Dark...... time to dive into some unforgettable nighttime experiences

Global travellers are invited to experience the vibrant nighttime celebrations taking place in Hong Kong this fall. From Mid-Autumn Festival celebrations and the annual Hong Kong Wine & Dine Festival to Taste Around Town and citywide Halloween celebrations, Hong Kong boasts an impressive line-up of events for everyone to enjoy this season.

A Tradition that Shines Bright

The iconic Tai Hang Fire Dragon Dance, which has been designated as a National Intangible Cultural Heritage, this year takes place on 16–18 September. Over 300 performers will work together to carry and manoeuvre a massive 67-metre-long fire-lit dragon through the grid-like streets of the Tai Hang neighbourhood. The dragon, made of pearl straws and covered in around 12,000 incense sticks, requires seamless teamwork to keep it dancing.

On the evening of the Mid-Autumn Festival (17 September), there will be a festival-themed drone show over Victoria Harbour, which promises to create unforgettable memories for locals and visitors alike as it showcases Hong Kong’s vibrant spirit and unique blend of tradition and innovation. Other highlights include lantern carnivals and vibrant celebrations taking place across various neighbourhoods, including at Victoria Park (12–18 September) and Lee Tung Avenue (31 August–15 October).

The Hong Kong Wine & Dine Festival Returns This October

The annual Hong Kong Wine & Dine Festival is making a grand return to Central Harbourfront from 23 to 27 October. This year, the Festival will be extended by one day, becoming a five-day, open-air culinary party. All from near and far are welcome to savour some of the finest tastes from this culinary capital, all backed by breathtaking views of Victoria Harbour. This year’s line-up also features a diverse selection of wines and spirits from various countries and regions all in one place.

Other key highlights include dozens of food stalls serving up epicurean delights, including about 10 award-winning restaurants that will showcase their culinary mastery in a designated gourmet area, an exclusive cocktail lounge in front of Victoria Harbour for the perfect setting to enjoy signature serves expertly designed by renowned mixologists and an exciting programme of spectacular music performances throughout the five-day festival.

The Festival will also provide the perfect launching pad for “Taste Around Town”, a citywide culinary celebration across Hong Kong over the entire month of November, with special menus and offers that leave everyone’s palates wanting more.

For more information about “Hong Kong Wine & Dine Festival” and “Taste Around Town”, please visit: www.discoverhongkong.com/eng/what-s-new/events/wine-dine-festival.html

Hong Kong Halloween: A Spooktacular Time Awaits

A reflection of the city’s East-meets-West culture, Halloween is one of the biggest days on the city’s social calendar, with restaurants, shopping malls, major attractions and more all taking part in the celebrations. As well as whimsical and creative Halloween-themed decorations and displays all around town, Lan Kwai Fong, one of the city’s most popular nightlife districts, will be the centre of the action, with the destination’s lineup of over 100 bars and restaurants set to welcome revellers in all manner of costumes into the early hours.

Hong Kong Ocean Park unleashed classic Hong Kong Horror (7 September - 3 November), invites thrill-seekers of all ages to immerse themselves in the scariest urban legends of the 1980s. The new Ocean Park Halloween Fest emerges Six haunted experiences, leading guests to explore each gloomy zone, from old walled city, haunted apartments to ghostly hotels.

Disney Halloween Time (13 September – 31 October) is set to make a grand return to Hong Kong Disneyland Resort this season. Get ready for the evilest laughs and surprises as an array of enchanting Disney-themed Halloween experiences whimsical-themed merchandise and limited-edition delicacies await.

The night continues

Extend your evening by indulging in Hong Kong's vibrant nightlife. Savour delicious late-night local delicacies or embark on a bar-hopping adventure to experience the city’s diverse culinary scene and lively atmosphere. Start planning your trip to Hong Kong today and immerse yourself in the magic of these world-class events.

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For information about the “Mid-Autumn Festival”, please visit www.discoverhongkong.com/eng/explore/culture/mid-autumn-festival.html. For information about “Tai Hang Fire Dragon Dance”, please visit www.discoverhongkong.com/eng/explore/culture/tai-hang-s-fire-dragon-dance.html.

SkyDrive and Osaka Metro sign agreement to work towards social implementation of eVTOL after the EXPO 2025

SkyDrive Inc, a leading Japanese eVTOL aircraft manufacturer confirmed it has signed an agreement with Osaka Metro Co. to study the feasibility of using eVTOL in the Osaka area after the Expo 2025 Osaka, Kansai, Japan. In addition, Osaka Metro has invested in SkyDrive for continued development.

SkyDrive's mission is "taking the lead in the once-in-a-century mobility revolution," and its vision is to create a future where everyone uses eVTOLs for daily transportation in Japan and across the world. SkyDrive was selected to participate in the Advanced Air Mobility "Smart Mobility Expo" Project in 2025.

Osaka Metro operates eight subway lines and one New Tram, which is an automated, driverless tram. Each day, around 2.4 million passengers use the Osaka Metro rapid transit system. The company is also advancing an urban Mobility-as-a-Service (MaaS) concept called "e METRO," which integrates various modes of transport, including subways, buses, and taxis, to make Osaka city more convenient. In February 2024, Osaka Metro was selected as an operator of a vertiport outside the Expo site in Osaka.