Aviation Concepts (FL)’s Post

Air France-KLM turn out to be the best #investment ever for French government Air France-KLM a not only repaid €4 billion in state-guaranteed loans (PGE) to 2 years ahead of schedule but also paid around €650 million in interests to the French government. Though costly, these financial conditions imposed by the EU encouraged quick repayment. The state's participation in Air France-KLM's capital increase in 2022 could yield future gains. Despite stringent terms, the airline's profitability and continued debt reduction (sell of #FlyingBlue and part of cargo operations to Apollo Global Management, Inc. )are likely to boost stock values higher. External acquisition such as SAS - Scandinavian Airlines Airlines and potentially TAP Air Portugal in coming years will help the group to become a key player amongst airlines major players. The government also benefits significantly from annual taxes paid by the airline, amounting to nearly €1.5 billion in 2022, crucial revenue that would have vanished if Air France had gone bankrupt in 2020, highlighting the positive impact on public finances..in that case. For records AF marketcap is today 3,4 billion € under evaluated according to financial analysts consensus in Europe and in the US. #aviation #deal #finance

The African Civil Aviation Commission AFCAC (AFCAC) must be given the 'teeth' to drive pan-African air transport liberalisation and implement the African Union’s flagship Single African Air Transport Market (SAATM) project. This is according to high-level speakers on the aero-political panel at the Aviation AFRICA Summit & Exhibition, held in Johannesburg on 17 September. “A new discussion should be, how do we make AFCAC better empowered to be able to even set regulations and have an ability to harmonise those regulations,” stated Poppy Khoza, Director of Civil Aviation, SACAA (South African Civil Aviation Authority). Africa should look at the way Europe has organised itself in this field as an example of best practice. “For instance, when you are a member state of the European Union falling within EASA [EU Aviation Safety Agency], it is not just an agency, it is an agency that has teeth. Either you comply or you don't, and if you don't comply, there are consequences,” said Khoza. “The single major problem that we have is a lack of implementation of programs that we ourselves have developed for the growth and development of the economies of Africa, but led by aviation,” said Capt. Gilbert M Kibe, Managing Director of Air Transport Consulting Ltd, and a former Director General of Kenya’s CAA. SAATM was officially launched in 2018 with the commitment of 23 states to create a single unified air transport market. In November 2022, to accelerate the implementation of SAATM, AFCAC launched the SAATM Pilot Implementation Project (PIP), an initiative designed to boost the implementation of SAATM through an approach where clusters of countries come together to move liberalisation measures forward. Despite this initiative various speakers at Aviation Africa were dissatisfied with the slow pace of SAATM. “I think it’s nascent,” said Rodger Foster, CEO of South African carrier Airlink, in terms of SAATM enabling his business to open more intra-African routes. “I think it is an opportunity, but we have to do much more,” said Foster. Read more: https://lnkd.in/dPZB8-YT #africa #civilaviation #airtransport #events #avaf24 #aviationafrica #aviationindustry

Great insights shared by the CEO of BARSA at ACI 2024 on the panel discussing the critical role of strategic partnerships between international and African airlines. The conversation highlighted how capital investment, consolidation, and strengthened balance sheets are key to driving growth across the African continent. A united Africa, with less political interference in the airline industry, is essential for sustainable development and success. #BARSA #aci #SAATM #AviationAfrica #StrategicPartnerships #AfricanUnity #AviationGrowth #SustainableDevelopment #AfricanAirlines”

[PRESS RELEASE]     ACI EUROPE calls on the European Commission to ensure that smaller regional airports will still be able to receive operating aid in the future, to preserve the social and economic benefits of air connectivity and facilitate decarbonisation.      “Supporting the financial viability of our smaller regional airports is a prerequisite to maintain vital air connectivity for their communities.”  - Olivier Jankovec, Director General of ACI EUROPE     The 2014 Aviation State aid Guidelines have allowed airports with less than 3 million passengers per annum to receive State aid aimed at covering their operating costs deficit. This aid was due to end in 2027 – based on the idea that it would be enough time for airports to reach the necessary profitability level, by raising their user charges, attracting new traffic, and achieving more cost efficiencies.    However, a new study from Oxera Consulting LLP commissioned by ACI EUROPE and national airport associations L'Union des Aéroports Français (UAF), Flughafenverband ADV, Asociaţia Aeroporturilor din România and Assaeroporti - Associazione Italiana Gestori Aeroporti reveals this has not been the case, and is unlikely to be in the foreseeable future for airports with under 1 million passengers per year. This means the review of the Aviation State Aid Guidelines must ensure operating aid to these airports will be extended beyond 2027.     For more details, read our full press release: https://shorturl.at/9AfoG 

Yes support for these airports should be extended not just to continue vital air connectivity in absolute terms, as correctly pointed out by ACI Europe, but also as indicated in my recent study in relative terms (Link: https://lnkd.in/e4csFnxD). Population-weighted connectivity disparities between European regions, particularly in Spain and Finland, and to a lesser extent Poland, Romania and Latvia are already too high. Removing this type of support would therefore set Europe back in its aims to reduce inequalities and increase cohesion.

📊#MarketRoundup: Latam extends lead in Brazilian skies Latam extends lead in Brazil amid Gol crisis Chile-based airline LATAM Airlines broadened its lead in Brazil last year, according to data from the National Civil Aviation Agency (ANAC - Agência Nacional de Aviação Civil). The company has led the domestic aviation segment in Latin America’s largest economy since 2021, when it overtook local rival Gol, which is now in financial trouble. ♟️State of play: Latam emerged from its pandemic-related bankruptcy proceedings in late 2022, reducing its debt by approximately USD 3.6 billion (a 35 percent reduction from pre-filing levels), while Azul completed a broader restructuring in 2023. Gol is also struggling financially and has just filed for Chapter 11 bankruptcy protection in the U.S. 🔗Read more in the full article by Fabiane Ziolla Menezes here 👇 https://lnkd.in/dHdizFRR #Airlines #Bankruptcy #Travel #AirlineCarriers #Logistics #Infrastructure #Business #Economy #AirTravel #BrazilianReport #DomesticAviation

Pakistan International Airlines (PIA) is undergoing a significant change. The government of Pakistan has initiated the privatization process, inviting bids for a majority stake in the airline. This move aims to revitalize PIA, which has recently faced operational and financial difficulties. Potential buyers must demonstrate substantial financial standing. The government requires a minimum net worth of Rs. 30 billion (approximately $100 million) and an annual revenue of Rs. 200 billion (around $700 million). The application deadline is May 3rd. Privatization offers the potential for improved service, efficiency, and financial stability for PIA. However, some remain concerned about whether the net worth requirement is sufficient to address the airline's challenges. This privatization process is a significant development for PIA and Pakistan's aviation industry, and the public will closely watch its outcome. #aviationindustry #pakistanairlines #piaprivatization #development #privatepia #piastocks #cohortmax

News update!📰 CBN clears $831m foreign airlines’ trapped funds – IATA NB completes 80% acquisition of Distell Nigeria Click on the link to dive into today's news. 👉🏾 rb.gy/m3g6wh Stay updated by subscribing to newsletters 🔔 #FinanceNews #News #NewsUpdate #Financenews

#DAY1 #AddisAbeba #ASC2024 Ballroom 1 Africa market outlook and insights into airline route development across Africa. by Mr. Zemedeneh Negatu , Global Chairman - FAIRFAX AFRICA FUND LLC The presentation discusses how investors can perceive the opportunity and the risk of investing in African airlines, the need for African airlines to consolidate to operate effectively, the role of the AfCFTA and SAATM and how to de-risk the risk of investing and doing business in Africa at the macro-level and its impact on the aviation sector. #newsaero #aviation #airlines #consolidation #Africa #AFRAA

More Questions Than Answers as Canada Jetlines Goes Belly Up Canada Jetlines has gone under, leading to more questions about Canada’s troubled airline industry. A number of pundits weigh in on what went wrong. #canadajetlines #airlinenews #airlineindustry #travelnews