Canada’s newest player in the aircraft leasing business is ready to flex its muscles. Almada Inc, a Toronto-based private equity firm, is looking to buy as many as 10 additional aircraft for its new leasing fund after acquiring its first 5 planes. Having raised C$80m (US$61m) from wealthy individuals earlier this month, it has commitments for another $60m of equity and could deploy 5 times that amount in the coming months with the help of leverage, said CE Alon Ossip. The fund could eventually be worth as much as $400m, with a fleet of up to 15 planes, Ossip said. <br/>Almada’s returns hinge on an ability to find planes that are below market value and lease them out at higher rates. Ossip pointed to a recent transaction in which Almada found a plane in Russia whose owner, an airline, wanted to modernise its fleet. <br/>
general
A winter storm blanketed much of the central Midwest with snow Sunday at the end of the Thanksgiving weekend, bringing blizzard-like conditions that grounded hundreds of flights and forced the closure of major highways on one of the busiest travel days of the year. With much of the central plains and Great Lakes region under blizzard or winter storm warnings, more than 1,000 flights headed to or from the US had been canceled as of 4:30 pm Sunday. Most were supposed to be routed through Chicago or Kansas City — areas forecast to be hit hard by the storm. Strong winds and snow created blizzard conditions across much of Nebraska and parts of Kansas, Iowa and Missouri. The National Weather Service was warning those conditions would make travel difficult in places. <br/>
EU regulators have launched an investigation into flight ticket distribution services on concerns that their agreements with airlines might result in more expensive plane tickets. The EU's executive commission said Friday that it has opened an antitrust investigation into Amadeus and Sabre, two major "global distribution systems" for airline tickets. The Commission is examining whether their contracts may restrict airlines and travel agents from using other suppliers. EU Competition commissioner Margrethe Vestager said she's concerned any possible restrictions "could create carriers to innovation" and push up distribution costs for airlines, "ultimately raising ticket prices for travellers." The Commission said the opening of a formal investigation "does not prejudge its outcome." <br/>
Four airlines have applied for a budget carrier's license, but they are still expected to face turbulence before taking off due to a shortage of crew. Fly Gangwon, Air Premia, Aero K and Air Philip will have to meet minimum govt requirements to be eligible to receive operation licenses by the end of this year. "Before year end, they have to employ some 200 personnel, including pilots, engineers and flight attendants," an airline official said. "The new budget airlines have been recruiting personnel and other airlines are keeping a close eye on their movements." The 4 new airline's priority is to secure pilots and they have been recruiting experienced pilots as instructors from the country's two full service carriers. Some budget airline CEs have already left for China to bring back Korean pilots who have been scouted by Chinese airlines in the past. <br/>
Chinese airlines were buffeted this summer by a series of cockpit blunders that put passengers’ lives at risk, pointing to what foreign pilots say are serious flaws in training as China’s booming aviation industry struggles to meet demand for flight crews. China’s Civil Aviation Administration ordered in September a national aviation inspection to root out “unqualified employees” and addressing the “excessive expansion” of civil aviation. Chinese airline passenger numbers quadrupled to 552m between 2005 and 2017. Around 5,000 new pilots joined the country’s airlines last year, and Boeing estimates China will need another 6,500 a year for the next 20 years to meet demand. That breakneck pace has put too many inexperienced aviators in the cockpit, 7 foreign airline captains with current or recent experience with Chinese airlines said. <br/>