Newswatch 17th August 2017
Two stories grabbed our collective eyes this week:
Air Berlin looks a confusing picture from a variety of angles – be that the potential impact on the A330-200 market of 17 unscheduled returns, the legal rights of lessors given the insolvency, the status of the €150m payment by Germany, and what happens when Air Berlin burns through that cash.
IBA thinks the situation is unclear as at the time of writing, will the long haul low cost angle be the focus for a Lufthansa involvement at the expense of the short haul operations? We have already heard Michael O’Leary, perhaps rightly, crying foul. On one hand though does it really change things? A Middle East investor is replaced by a European one – so what? Etihad is clearly unwinding itself from the previous growth plan of minority stakes in cash strapped airlines – who will be next?
As an aside, if you are exposed to Air Berlin and we haven’t yet spoken to you, do have a look here at our related slides from May.
The other story was Indigo’s announcement that it was looking to own more of its fleet. We’ve been looking at this trend for a couple of operators and while we don’t think we are quite calling the peak of the percentage of fleet leased yet, there are clear benefits of ownership if you are considering new generation narrowbodies long term. These include cheaper debt – if you’re established, better OEM support and lower total cost of ownership. This article sums up Indigo’s position well. As ever do call if you have any queries.
Speaking of Indigo, as part of the ramping up of our Operator Risk service we’ll be providing a detailed report on Indigo as an example of our output in the next week. Please email Paul.Lyons@iba.aero if you would like a copy.
In terms of thought leadership we’ve a couple of things to share this week. First is our freighter white paper which explores the interest and economics around narrowbody freighter conversions. You can also register for our upcoming freighter webinar here. Below you have our latest view on 320neo adoption which is available as part of a larger report. Contact our sales team on Sales@iba.aero for purchase information.