Latest news with #A320s
Yahoo
7 days ago
- Business
- Yahoo
Delta Swipes New Airbus Engines From Europe To Avoid Tariffs And Put Grounded U.S. Aircraft Back In The Air Instead
Delta does not want to pay tariffs on new aircraft. Rather than simply threatening to cancel Airbus orders, however, the airline is getting rather clever. Instead, Delta is removing the engines from Airbus A320s awaiting delivery from Europe and shipping them back to the U.S., reports The Detroit News. These new engines will replace faulty ones on grounded A320s here, returning them to the air. Because the A320's Pratt & Whitney engines were made in the USA, they are not subject to the 10% tariff that the replacement aircraft they're being stripped from would be. This creates an unexpected loophole that Delta seems happy to exploit. Delta and other airlines have grounded some A320 aircraft due to problems with their original engines. While waiting for a solution to the original problem, Delta can install the new engines and put these planes back into service. Meanwhile, the donor A320s will remain in Europe without engines, waiting patiently for a resolution to the very dumb tariffs. In an unrelated issue, regulators have not yet certified the seats on these planes for some reason, so Delta couldn't use them immediately, regardless of tariffs. Stripping their engines to get the A320s grounded in the U.S. with certified seats flying again seems like the fastest way to put more planes in the air. Bypassing tariffs in the process is icing on the cake. Read more: Save Your Engine: 5 Tips For Preventing And Cleaning Carbon Buildup Tariffs Don't Work This is not the first instance of "creative accounting" that Delta has used to circumvent tariffs. In the past, Delta took delivery of Airbus aircraft in Japan, rather than the U.S. as originally planned. Then, Delta assigned these aircraft to the same long-haul flights to the U.S. they would have flown if they had been registered here. The operational result is the same, but without having to pay an extra 10% tariff. While Airbus benefits from these creative loopholes, competitor Boeing still suffers from the tariffs that were intended to protect it. Chinese airlines rejected Boeing aircraft after retaliatory tariffs priced them out of reach. This could leave the U.S. as the only market where Boeing is competitive, but not if airlines prefer to follow Delta's lead and stick with Airbus instead. Some passengers prefer Airbus to Boeing, maybe because Airbus doesn't throw away missing door plug bolts during construction. Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox... Read the original article on Jalopnik.
Hindustan Times
07-07-2025
- Business
- Hindustan Times
Next step in development of Indian aviation should be bigger airports: IndiGo CEO
New Delhi: As IndiGo launches long haul flights to the United Kingdom (Manchester) and Europe (Amsterdam), Pieter Elbers, chief executive officer (CEO) of India's largest airline, says in an interaction that the next step in the development of Indian aviation should be not adding new airports but having bigger, better and smoother ones. Edited excerpts: The CEO said that aviation benefits from a level playing field and equal opportunity. (AFP photo) How do you see the domestic market developing for IndiGo as you already have 65% market share? Don't you think some of the routes are already at saturation level? I look at a key metric-- seats per capita -- and compare it with the US, Europe, or China. All of them have significantly higher numbers. Even China, despite its lower seats per capita, has four times more seats than India. Given that, and considering projections that the Indian market will double between 2023 and 2030, a compounded annual growth rate of 10-11% doesn't seem unrealistic. We've committed to doubling our fleet in the same period. Whether you look at seats per capita or GDP-related metrics, it all points in the same direction. Of course, we see seasonal fluctuations; for example, last May was muted due to heatwaves and elections. But I don't focus on monthly DGCA numbers; we are on a long-term mission. Past growth confirms the trend. So, the long-term outlook is robust. For us, market share is an outcome, not an objective. What is your game plan in terms of addressing the Indian market? We operate four types of services. We operate out of the metros. One could argue that our hub operations, connectivity and metros are a significant part of the GDP of the country and that is both metro-to-metro as well as metro-to-non metro. So that's one bucket: metro to metro. The second bucket is the metro to non-metro. I would say metro-to-metro (connectivity) probably there's already so many flights that growth will be somewhat slower than the average. Where we have seen a lot of growth is the metro to non-metro. The third one is non-metro to non-metro. So these are Tier-II/III cities and we'll connect them. And the fourth one is the regional connectivity scheme, which are these ATR connections. As a percentage, that's relatively limited, but in terms of giving wings to the nation, connecting smaller communities is there, we'll continue to focus on these four areas going forward. And, I would say, the largest growth we have seen is from the metro to non-metro areas. Do you see scope for further expanding your regional aircraft fleet? Well, that's a constant process of evaluation. Today we have 46-47 ATRs out of the order of 50, so it's almost totally consumed. Some routes that used to be operated by ATRs have now matured and can operate with A320s, which frees up some ATRs to do other routes. There's a certain set of airports which are ATR-only, and we're evaluating what could be the next step. Again, I think the Indian landscape in terms of the number of airports is evolving. Today, IndiGo operates 91 domestic airports. We have added four recently and will add another four this year, taking it to 95. Today, 90% of the Indian population lives within 100 kilometres of an IndiGo-served airport. Of course, 100 kilometres in a hilly area isn't the same as between two metros, but the coverage is still quite good. So I think the next step in Indian aviation development is not per se many more airports. It's perhaps bigger, better and smoother airports. So I think perhaps a lot of emphasis will be on increasing the capacity of existing airports. With international expansion enabling both better connectivity for Indian consumers and progress towards India becoming a global aviation hub, what policy changes would you like to see from the government, such as improved visa regimes or incentives for stopovers on Indian carriers to support this ambition? I would be hesitant about stopover regimes linked specifically to Indian carriers, as I wouldn't want reciprocal restrictions abroad. Aviation benefits from a level playing field and equal opportunity. I believe our product and costs enable us to compete with others. For India, the next step is improving transfer connection facilities. IndiGo has been on a premiumisation journey -- introducing Stretch class or the business class -- for the past 7-8 months. How has been the response to the offering in terms of occupancy domestically? I wouldn't call it a premiumisation journey, because that would suggest our entire product portfolio is moving in that direction and that's not what we're doing. We have a foundation with 130 destinations, 500 domestic routes, and 100 international. On top of that, we introduced the Stretch product on a selective number of routes. Unlike some US airlines that introduced premium products across the network, we have kept it limited. For us, it's about catering to a select group of Indian consumers aspiring for that product, and preparing for long-haul operations. The response is dynamic. Some days loads are very good, others are low. Customers aren't yet sure if a flight will have Stretch or not. The Indian market is extremely price-sensitive, with many bookings coming at the last moment.
Business Times
04-07-2025
- Business
- Business Times
Pelita Air to operate from T4 when it lands in Singapore, likely using Jetstar premises
[SINGAPORE] Indonesia's Pelita Air Service is said to be taking over the check-in premises of Jetstar Asia at Changi Airport terminal 4 after the budget carrier exits, The Business Times understands. This marks the first venture into the international market for the carrier, which has been serving domestic routes in its Indonesian home base. When asked to confirm its landing in Singapore's Changi Airport T4, Pelita Air's corporate secretary told BT it is currently finalising all necessary requirements and approvals. 'As for the exact date of the inaugural flight, we're waiting for an official release from management,' the corporate secretary added. Based on BT's understanding, the airline could make its inaugural Singapore flight in December. Also, ground handler and inflight caterer Sats will be serving Pelita Air. The carrier has earlier reportedly said it will start flights to Singapore this year, followed by Bangkok next year. It chose the city-state as the initial international destination due to its short flight duration and high traffic volume. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Delays in delivery of six A320s have resulted in Pelita Air expecting only four new planes this year, based on a March report. The carrier was started by Indonesian oil and natural gas player Pertamina to replace its air service department in 1970. Today, it serves economy and premium classes, covering 17 domestic destinations including Jakarta, Kendari and Sorong, based on its website. As Changi Airport prepares to receive Pelita Air, it will be bidding farewell to an airline based in Singapore. Budget carrier Jetstar Asia earlier announced that it is exiting Singapore for good on Jul 31, closing a chapter of about 20 years being the third carrier anchored in Changi Airport. Jetstar Asia operates out of T4 and its departure will affect 16 intra-Asia routes but will not have an impact on sister airlines Jetstar Airways and Jetstar Japan, with them continuing their current schedules, including Jetstar Airways' flights between Australia and Singapore. Jetstar Asia carried some 2.3 million passengers or 3 per cent of Changi Airport's total passenger traffic in 2024, but it has been racking up losses amid increased competition and costs.
Arabian Post
19-06-2025
- Business
- Arabian Post
Flynas IPO Falters Amid Regional Tensions
Saudi Arabia's budget carrier Flynas debuted on the Tadawul at SAR 80, raising SAR 4.1 billion, but shares closed at SAR 77.30—down over 3 %—despite an opening high of SAR 84.10 and a low of SAR 69.90. Investors responded nervously to heightened regional instability following military activity between Iran and Israel. Across Gulf markets, risk aversion sharply impacted airline stocks: Flynas dropped roughly 3.4 % on debut, ACWA Power slipped 3.3 %, and Saudi Aramco eased by 0.3 %. Regional airspace closures disrupted operations, forcing Gulf carriers to reroute flights and ramping up costs. Earlier trading saw Flynas plunge nearly 13 % to SAR 69.90 before recovering amid volatile swings capped by Tadawul's three-day fluctuation limit. Flynas marks the region's largest initial offering so far this year and the first by a Gulf airline in nearly two decades. The institutional tranche drew orders nearly 100 times publication, with the retail portion oversubscribed by 350 %, drawing 666,069 individual investors. ADVERTISEMENT Despite initial jitters, analysts stress Flynas's underlying strength. Its IPO pricing at the SAR 80 range reflects strong demand, and the airline's Saudi domestic base offers cost insulation from international fuel swings. SICO Bank remarked that while valuations were premium, the carrier's growth narrative remains compelling, even amid geopolitical uncertainty. The IPO's success adds momentum to the kingdom's capital markets, with six main‑market offerings this year raising over $2.8 billion and four others awaiting approval. Legal advisors note that despite market turbulence, appetite for public listings in the region remains robust. Operationally, Gulf airlines continue facing disruption. Several regional countries have closed airspace in response to conflict escalation, forcing airlines to reroute flights via longer corridors over Egypt and the Red Sea—pressuring operational efficiency. Fuel costs have jumped in tandem with the conflict, further squeezing airline margins. Gibson Dunn LLP acted as lead counsel, coordinating across global and local underwriting teams that included Goldman Sachs Saudi Arabia and Morgan Stanley Saudi Arabia. The combined institutional and retail interest helped the offering exceed $100 billion in orders. Flynas's Istanbul IPO arrives at a pivotal moment. The airline's strategic plan, backed by Kingdom Holding and the Public Investment Fund, aligns with Saudi Vision 2030's aim to transform the kingdom into a travel destination. Having ordered 160 aircraft from Airbus—including narrow-body A320s and its first wide-body A330s—the carrier is expanding fleet and network rapidly. Industry analysts caution that policy and geopolitical risks will continue to shape investor sentiment. While some entrants have postponed their floatings, many are proceeding quickly—optimising pricing and timing to counter valuation headwinds. The flight path for new listings in the Gulf may be turbulent, but Flynas's performance suggests that well-structured IPOs with strong fundamentals can still attract robust interest.
Yahoo
17-06-2025
- Business
- Yahoo
5 Revealing Analyst Questions From Delta's Q1 Earnings Call
Delta's first quarter drew a positive market reaction, as investors responded to the airline's ability to generate steady revenue growth and maintain profitability in a turbulent operating environment. Management credited the quarter's performance to the continued resilience of higher-margin segments—particularly Premium cabins and Loyalty programs—as well as strong international travel demand. CEO Ed Bastian highlighted Delta's 'industry-leading reliability and premium service,' while President Glen Hauenstein noted, 'approximately 60% of our total revenue now comes from diverse, high-margin streams.' Despite softness in domestic Main Cabin demand and a more challenging macroeconomic backdrop, Delta's diversified revenue mix and operational discipline helped offset these headwinds. Is now the time to buy DAL? Find out in our full research report (it's free). Revenue: $14.04 billion vs analyst estimates of $13.88 billion (2.1% year-on-year growth, 1.1% beat) EPS (GAAP): $0.37 vs analyst expectations of $0.40 (6.9% miss) Adjusted EBITDA: $1.2 billion vs analyst estimates of $1.3 billion (8.5% margin, 7.8% miss) Revenue Guidance for Q2 CY2025 is $16.66 billion at the midpoint, roughly in line with what analysts were expecting EPS (GAAP) guidance for Q2 CY2025 is $2 at the midpoint, missing analyst estimates by 12.1% Operating Margin: 4.1%, in line with the same quarter last year Revenue Passenger Miles: 55.68 billion, up 1.47 billion year on year Market Capitalization: $32.3 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Conor Cunningham (Melius Research) questioned whether ongoing domestic softness could spill over to Premium and International segments. President Glen Hauenstein explained they are monitoring closely but see no evidence of weakness outside the Main Cabin yet. Andrew Didora (Bank of America) asked about the timing and geographic focus of capacity cuts. Hauenstein clarified that reductions will begin in August, concentrated in the Southeast, and mainly affect off-peak Main Cabin flights. Catherine O'Brien (Goldman Sachs) probed how Delta can maintain cost targets while reducing capacity. CFO Dan Janki detailed strategies including flexible labor scheduling, maintenance timing, and supplier negotiations. Duane Pfennigwerth (Evercore) sought specifics on which fleet types are being retired and the drivers of loyalty growth. Hauenstein noted focus on retiring 757s, 767s, and older A319/A320s, and that loyalty growth is primarily from increased cardholder spend. Tom Fitzgerald (TD Cowen) inquired about competitive dynamics and risk of customer trade-down to low-cost carriers. Hauenstein argued Delta's strong brand and loyalty program should allow it to retain share, even as yields may fall. In coming quarters, the StockStory team will be watching (1) whether capacity reductions improve profitability on domestic routes, (2) the resilience of Premium and International demand as macro uncertainty persists, and (3) the ongoing impact of cost-cutting measures on margins and free cash flow. Fleet retirements, booking trends for summer travel, and the execution of new MRO contracts will also be important markers for Delta's performance. Delta currently trades at $48.19, up from $35.92 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
