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Air China plans up to $842 mln share placement to buy planes, boost capital

Air China plans to raise up to 6.0b yuan ($842m) in a private share sale on the Shanghai Stock Exchange to expand its fleet and replenish working capital, it said on Friday. The flagship carrier is aiming to sell up to 854.7m shares, equivalent to 30% of its existing capital, to its controlling shareholder China National Aviation Holding Corporation Limited, it said in a statement to the Shanghai exchange. Air China will use 4.2b yuan of the proceeds to fund the purchase of 17 airplanes, with the remaining 1.8b yuan used to boost its working capital, according to the filing. The Chinese airline did not disclose the details of the aircraft acquisition plan. At the end of November, the group operated a fleet of 900 aircraft, including 386 company-owned aircraft, 215 under financial leases and 299 under operating leases.<br/>

Boeing's first Dreamliner delivery to China since 2019 arrives

Boeing's first direct delivery of a 787 Dreamliner to China since 2019 landed in Shanghai on Friday, a step that could hasten the end of China's freeze on deliveries of the firm's profitable 737 MAX after more than four years. Privately owned Chinese carrier Juneyao Airlines on Thursday took delivery of the 787-9 aircraft, which Boeing said then departed for China from Everett Paine Field in Washington state. The flight landed in Shanghai around 4:20 p.m. local time (0820 GMT), the airline said. China suspended most orders and deliveries of Boeing planes in 2019 after the 737 MAX was grounded worldwide following two fatal crashes. A restart of MAX deliveries would represent a reset of Boeing's relationship with China and create an opportunity for the company to offload dozens of planes in its inventory, and pave the way for a larger breakthrough in deliveries and orders. The company expects China to account for 20% of the world's aircraft demands through to 2042. Boeing last delivered a leased Dreamliner plane to a Chinese customer in 2021, but no 787s have been handed over directly to Chinese airlines since November 2019. Analysts had forecast the resumption of Dreamliner deliveries to China after consultancy AAP/AIR this month reported preparatory flight activities for a 787 designated for Juneyao Airlines, registered as B-20EQ.<br/>

Japanese airlines see rising inbound demand for New Year holiday

All Nippon Airways and Japan Airlines announced on Friday that the number of reservations for international flights for the New Year holiday had increased from the previous year by 35% and 15%, respectively, driven primarily by stronger demand from incoming travelers. From Dec. 28 to Jan. 3, ANA and JAL had 143,917 and 126,693 passengers booked for international flights, respectively. Both airlines have recovered to about two-thirds of their pre-COVID-19 pandemic levels of four years ago. Inbound travel is the driving force for demand recovery. According to the Japan National Tourism Organization, 2,440,800 people arrived in Japan in November, 2.6 times the number in the same month the previous year and almost the same level as in 2019. While many Japanese are reluctant to travel abroad due to inflation and the weak yen, there are signs of recovery in Japanese outbound travel. According to ANA, outbound demand during the New Year holiday is about 60% of the level four years earlier. Hawaii is one of the top destinations for Japanese travelers. For ANA, 15,571 people reserved flights on this route during the holiday, the highest ever number for the season. Demand was also strong for destinations close to Japan, such as South Korea and Taiwan. Many Japanese families spend the New Year's holiday together in their hometowns. ANA domestic reservations were up 2% to 883,832, while JAL reservations were down 2% to 695,202. These equated to 83% and 88%, respectively, of their pre-pandemic levels.<br/>

Air India takes delivery of first A350

Air India has taken delivery of its first Airbus A350-900, with the type to enter commercial service in January 2024. The aircraft (VT-JRA, MSN554) arrived in New Delhi after a ferry flight from Airbus’ Toulouse facility on 23 December. It is the first of six -900s that will be delivered to the airline through March 2024. The six jets were originally allocated to Aeroflot before international sanctions were imposed on the Russian airline. Air India has a total of 20 -900s on order, along with the same number of -1000s. They are part of a wider order for 250 Airbus aircraft to modernise its fleet. The Star Alliance carrier says the aircraft will operate domestic flights from January, “for crew familiarisation”, before being deployed on intercontinental flights. It adds: “The schedule of commercial operations with the A350 will be announced in the coming weeks.” The A350s are configured to seat 316 passengers in three classes: 28 in business class, 24 premium economy seats, as well as 264 seats in economy class. Air India has tapped on Collins Aerospace for its cabin products. The aircraft is also the first aircraft in Air India’s fleet to showcase its new livery – first announced in August – featuring a new font and a red-gold-purple fin motif inspired by the traditional Indian window-frame historically used by the carrier.<br/>

SIA launches Gatwick service, while Vistara boosts international network

Singapore Airlines will launch a non-stop service on the Singapore London Gatwick route from June 2024, operating five times weekly with Airbus A350-900s. The new route will add to the carrier’s four-times-daily service to London Heathrow and bring its total services to London to 33 weekly from 28.<br/>“Renowned as one of the world’s best carriers, we are delighted to welcome Singapore Airlines to London Gatwick,” says Stewart Wingate, CE of London Gatwick. “It showcases the high regard with which Gatwick is held, and connection to the impressive Changi Airport is a big boost for the whole region.” Also adding capacity to London is Indian carrier Vistara, a joint venture between SIA and India’s Tata Group. The carrier will boost its Mumbai-London Heathrow route to daily in March 2024, up from four times weekly. The carrier will also add a second daily service on the Mumbai-Singapore route in February 2024, using A321neos. In addition, Vistara recently recommenced a four-times-weekly service on the Mumbai-Doha route, also using A321neos.<br/>