Investec Bank’s aviation arm made its first foray into financing the Airbus Group SE A380 superjumbo with a deal to purchase four jets operated by Emirates before leasing them back to the Dubai-based carrier. Investec will pay a total of $1 billion for the double-deckers, of which two are new and owned by Emirates, with the other two, first delivered in 2013, being bought from Aviation Finance’s Stellwagen Finance, it said Monday. London-based Investec, which already finances single-aisle and smaller twin-aisle aircraft built by Airbus and Boeing, plans to own the A380s for 12 years before selling them on the secondary market, said Alok Wadhawan, co-head of Investec Aviation Finance. Interest in aircraft purchases has increased as yields from more traditional assets struggle to recover to the levels seen before the 2008 credit crunch and global recession. The price of oil has also buoyed airline earnings, while making the four-engine A380 a more viable prospect, Wadhawan said.<br/>
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A Southwest flight has arrived safely at Mineta San Jose International Airport after the pilot asked to make an emergency landing there due to mechanical problems. Airport spokeswoman Rosemary Barnes said Southwest Flight 346 was en route from Phoenix to San Francisco on Monday morning when the pilot reported the mechanical difficulties that led to the unscheduled stop in San Jose at 11:15 a.m. Barnes says fire trucks were dispatched to greet the plane and followed it as it taxied to a gate under its own power. No injuries were reported. Southwest Airlines said the mechanical issues included reports of possible smoke in the cockpit. The airline said the flight was carrying 170 passengers and six crew members.<br/>
Air Arabia reported strong financial results for A1 2016. Air Arabia reported a net profit of Dh114m for the three months ending March 31, 2016, 34% higher than the corresponding 2015 figure of Dh85m. In the same period, the airline posted a turnover of Dh946m, an increase of 7% on Dh886m in Q1 last year. The airline flew more than 2.1m passengers between January and March 2016, up 17% on the corresponding period of last year. The airline’s average seat load factor during the first three months of 2016 stood at 81%.<br/>
Oman’s airport operator wants new airline Salam Air to set up its base at Salalah International Airport, a move it believes would increase the profile of the country’s second largest airport. A new 2m-passenger (capacity) terminal opened at Salalah International in June replacing the old 500,000-passenger terminal. Meanwhile, Oman awarded a licence to state-owned Muscat National Development and Investment Company in January to establish budget carrier Salam Air, the country’s second airline. “We are pushing them to go to Salalah but I think they are pushing back to stay in Muscat,” Oman Airports Management Company chief executive Aimen Ahmad Sultan Al Hosni said Monday. The budget airline will start operations by early 2017 as per an agreement with Oman’s aviation authority and plans to fly medium and short-haul flights.<br/>
Icelandair has signed a purchase agreement for two more Boeing 767-300s, which will undergo a complete refurbishment before entering service. The Reykjavík-based carrier, which was historically an all-Boeing 757 operator, branched out into 767 operations last summer and has just put two 767-300s into service. With the new two additions, Icelandair will operate four 767-300s in 2017, which will be used to support its organic growth plans. “These aircraft will be delivered in the coming months and undergo complete refurbishment, in line with other aircraft in Icelandair fleet. Refurbishment is expected to be completed in early 2017. Purchase price is confidential,” Icelandair Group said.<br/>