China Aviation Industry I (AVIC I) Commercial Aircraft Co. (ACAC) is to supply Irish-American aircraft lessor GE Commercial Aviation Services (GECAS) with up to 25 General Electric CF34-powered ARJ21-700ER regional jets starting in 2013 under a contract signed today at the China International Aviation and Aerospace Exhibition in Zhuhai.
GE Commercial Aviation Services
In his two decades at the helm of General Electric, during which the market value of the company increased by more than $400 billion, Jack Welch did not often feel the sting of defeat.
Yet in the waning months of his storied career, defeat is exactly what the irascible chairman and CEO was handed when the European Commission in August staunchly rejected his company’s planned $45 billion takeover of Honeywell.
Desperate to cut RJ capacity as system-wide load factors hover around 50 percent, Independence Air managed to convince GECAS to cancel its leases on 10 Bombardier CRJs last month. The sides also reached a conditional agreement that would grant Independence a five-year loan and allow the airline to end leases early on another six to 10 RJs during the second quarter.
Embraer collected firm orders for 20 E-Jets from two customers in the Middle East and Africa during last month’s Dubai Airshow, raising its profile still further in a region where it has dominated a budding market for regional jets.
Dubai Aerospace Enterprise made good on a promise to challenge the aerospace industry’s established aircraft leasing giants by committing to orders for 200 new Airbus and Boeing jets worth more than $27 billion.
Under pressure to help their employer meet financing conditions set by regional jet lessor GECAS, the pilots of US Airways voted to ratify a new agreement that will allow the troubled airline to transfer delivery positions for Embraer 170s and Bombardier CRJs from wholly owned subsidiaries to independent US Airways Express carriers. Only 74.1 percent of the eligible active pilots cast ballots.
GE Capital Aviation Services has amplified threats to withdraw its regional jet financing deals with US Airways if pilots do not accept a revised letter of agreement (LOA 91) to loosen restrictions on RJ placement outside the airline’s wholly owned subsidiaries.
Embraer gained FAA certification for the E195 last month, more than a year after it won certification for the 110-seat airliner from European and Brazilian authorities and delivered the first production example to launch customer Flybe of the UK.
Aircraft leasing company General Electric Commercial Aviation Services (GECAS) has converted options held on six GE90-110B1L-powered Boeing 777F cargo aircraft, bringing its 777 fleet to 39, of which 15 have been delivered. The latest order, which can be changed to cover passenger variants, brings GECAS 777F orders to 14 and its total Boeing fleet to 378.
GE Capital Aviation Services last month secured $220.8 million in financing from Brazil’s BNDES development bank for 10 Embraer 170s destined for US Airways, LOT Polish Airways and Alitalia. The deal came after BNDES president Carlos Lessa told Embraer last year to start seeking other sources of financing for this year’s airplane deliveries. Embraer blamed financing delays for last year’s disappointing financial performance.