Short Takes
November 6th 2020
Thai Airways International (THAI) this week listed 34 aircraft for sale, with bids due by November 13. Read More » The debt-laden airline, which is working through a business rehabilitation plan with the country's bankruptcy court, has put 10 747-400s, 12 777 family aircraft, nine A340 family aircraft, two 737-400s and one A300-600 on its THAI aircraft trading website. "All aircraft are offered for sale on an 'as-is, where-is' condition," the website said.
The Indonesian government has flagged bringing the country's flag carrier, Garuda Indonesia, along with state-run airports and tourism businesses, under one roof, local media reported this week, citing comments from the Enterprises Ministry. The proposed single holding company would maximise operational efficiencies and reduce costs, with plans to bring the idea to fruition in 2021.
Manufacturer Spirit Aerosystems this week reported a net loss of US$156 million for the three months to September 30, compared with a net profit of US$131 million a year ago. Revenue collapsed by 58%, to US$806 million, due in large part to "significantly lower production of the 737 MAX", following its grounding in March last year, as well as reduced airliner production from COVID-19, the company said. Spirit delivered 206 ship sets in the quarter, less than half the 437 ship sets in the same quarter 12 months ago. “We have made substantial progress in stabilizing our liquidity position and driving cost reduction actions to align with lower levels of production resulting from the MAX grounding and COVID-19 pandemic,” Spirit AeroSystems CEO, Tom Gentile, said.
Safran Group CEO, Philippe Petitcolin, said late last week there had been a "lesser deterioration" in the third quarter of calendar 2020, following a second quarter when the company was "strongly hit" by COVID-19. The company said in a statement activity had "edged up" in the third quarter, especially in September, since the trough in the second quarter. "It was notably driven by services for civil engines and also by a slight upturn in propulsion and equipment OE activities in Q3," Safran said in a statement. Combined shipment of CFM-56 and LEAP engines fell 60%, to 211 units in the quarter, from 524 units a year earlier.
