Onex Corp's purchase of WestJet Airlines has prompted Moody's to place 2 of the carrier's credit ratings under review for possible downgrade. The rating agency says it expects Onex to download some of the C$5b acquisition cost, which includes debt, onto WestJet when the deal closes. Such a move would increase the airline's adjusted leverage, though WestJet has no room in its current rating for any increase, Moody's said Tuesday. The all-cash deal, announced Monday, will see Onex take WestJet private after 20 years on the Toronto Stock Exchange. Onex MD Tawfiq Popatia said that the private equity firm plans to stick to WestJet's current trajectory, with no major strategy shifts in the works. WestJet CE Ed Sims said that going private would relieve the airline of the constant scrutiny that attends publicly held companies. <br/>
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Nok Air reported a consolidated net loss of THB391m (US$12.4m) in Q1, which it blamed on the low season and a reduction in its fleet size under its turnaround plan. The loss is a major blowout compared to the THB1.18m reported for the previous corresponding quarter. Consolidated revenue for the 3 months to March 31 fell 10% to THB5.45b, while expenses reduced 4% to THB5.84b. On a standalone basis, Nok Air’s net loss rose from THB32m to THB281m, as revenue fell 20% to THB3.47b for the quarter. The carrier’s ASKs fell 18.5%, but that was outpaced by a 22% fall in RPKs, resulting in cabin seat factor falling 4 percentage points to 89.7%. CASK increased 2.7% to THB2.25, while RASK slipped marginally to THB2.10. <br/>
Air Italy plans a modest increase in its number of long-haul Airbus A330s, rather than taking on Boeing 787-8s, because of delays in delivering new aircraft to its minority shareholder, Qatar Airways. Qatar Airways has a 49% stake in Air Italy and has been infusing the company with Airbus A330-200s from its own fleet, replacing elderly Boeing 767-300ERs. The A330-200s were, in turn, scheduled to be replaced by Boeing 787-8s from Qatar Airways’ fleet as the Arab carrier took newer 787-9s on charge. However, delays to the arrival of the 787-9s mean these plans have changed. “As we have stated before, Qatar Airways’ Boeing 787-9s are delayed, which means we cannot for the moment take delivery of our leased Boeing 787-8 aircraft from Qatar Airways Group,” an Air Italy spokesperson said Tuesday. <br/>