US airports are breaking records on construction spending to cash in on a surge in travel while the industry is flush from years of low fuel prices. Airports spent a seasonally adjusted US$5.42b on construction in May, according to a preliminary estimate by the US Census Bureau Monday, a 75% increase from a revised estimate of $3.1b a year earlier. “We’re at record airline traffic right now,” said George Ferguson, an airline industry analyst for Bloomberg Intelligence. “In every market I look at, airlines are adding a lot of capacity.” Airlines have booked healthy profits in recent years, but those margins are beginning to narrow as oil prices rise, and both airlines and airports are fighting for market share, Ferguson said. For airlines, that could mean buying more planes. For airports, it may mean updating terminals, he said. <br/>
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Aircraft financier Amedeo said Monday it had agreed a partnership with the owners of Intrepid Aviation Holdings, in a deal bringing together two leasing firms that have bet their futures on the high-stakes market for wide-body jetliners. Under the deal, private equity firms Centerbridge Partners and Reservoir Capital agreed to acquire a minority of Amedeo Capital, while Amedeo will take a minority share in Intrepid and also take over its US aircraft management subsidiary. The deal keeps Intrepid's core shareholders on board and offers Amedeo a fleet of 30 planes, all but one of which are wide-bodies, more than doubling its managed fleet of 19 big jets and giving it access to a broader selection of types. <br/>
Airbus and Bombardier confirmed the transaction transferring majority control of the CSeries program to Airbus was completed as scheduled July 1. Under terms of the agreement reached in Oct 2017, Airbus now owns a 50.01% stake in the CSeries Aircraft Limited Partnership (CSALP), Investissement Québec owns approximately 34% and Bombardier holds 16%. CSALP’s head office and the primary CSeries final assembly line (FAL) will remain based in Mirabel, Canada. Philippe Balducchi, who formerly was Airbus Commercial Aircraft’s performance management chief, has taken over as the head of CSALP. The 110-150-seat narrowbody aircraft, which is available in 2 variants (the CS100 and CS300), will immediately become part of Airbus’ portfolio. <br/>
Travellers are about to get cheaper flights in Argentina as president Mauricio Macri curbs price floors that have propped up domestic airfares. In an effort to boost tourism, the govt will allow airlines to drop prices as low as they want for domestic service as of Aug 15. The rule change only applies to round trips, and customers must purchase flights 30 days in advance. Tickets will go on sale in a few days, Transport minister Guillermo Dietrich said. “Argentina was one of the most expensive countries to fly in the region,” Dietrich said Monday. The rule change “offers a lot more opportunities for many people to fly.” The move furthers president Mauricio Macri’s efforts to shake up Argentina’s airline industry. His administration already scrapped price ceilings to attract more international carriers. <br/>