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Restructuring

This category contains 3 posts

Primera Air fails to secure long term financing and shuts down, but was its collapse inevitable? Its product positioning was vague, LCC or Full Service, point to point with no feed, small 7 aircraft fleet (5 x A321neo and 2 x B737-800, plus 2 x A321LR and 18 x B737-9 on order) of its own, late aircraft deliveries, unexpected maintenance and then too many ACMI leases and starting too many long haul routes at once sealed its inevitability?

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/         Primera Air blames ‘several unforeseen misfortunate events’ for its collapse, but did it take a risk too many in entering the competitive trans-Atlantic market?   October 3, 2018 – CAPA The European carrier Primera Air surprised everybody when it burst into the trans-Atlantic market earlier this year. After over … Continue reading

BOC Aviation says 301 airline failures this decade and rising, 2 per month and 90% were <20 aircraft operators that did not reach "critical mass"​

https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/     October 25, 2018     Tomas’s Comment:     These comments from BOC Aviation’s MD & CEO Robert Martin, confirm what we are seeing, and that is shake out of small weak carriers just cannot compete effectively with small fleets, usually high debts and little equity or ability to raise more cash. … Continue reading

Start-up Vietnamese airline, Bamboo Airways, has committed to purchasing 20 787-9 Dreamliners and 24 x Airbus A321neo’s back in March. The airline will be up against state owned and soon to be 49% privatized Vietnam Airlines with 83 aircraft and 28 on order, LCC VietJet Air with 55 aircraft and 179 on order and lastly Jetstar Pacific with 19 aircraft, if all airlines take their orders, Vietnam should have 4 airlines operating a total of 408 commercial jet airliners by +/- 2024, that is going to be a highly competitive market for sure.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Airline Economics Online- June 27, 2018       Tomas’s Comment:   Bamboo Airways, is a startup airline by a Vietnamese construction company, FLC Group. It will start in late 2019? and will serve destinations where FLC Group has heavily invested in tourism infrastructure, as well as other secondary domestic routes.   … Continue reading