European Court Of Justice Rules In Favor of EAN | Jet Edge & Gogo Business Form Alliance |The 2021 Current Aircraft Finance Market Outlook | News From Galgus | Vision Box |Air Astana Selects Media Box

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European Aviation Network

The European Court of Justice (ECJ) issued a milestone decision answering a set of questions referred to the ECJ in proceedings initiated by Eutelsat (and supported by Viasat) regarding Inmarsat’s European Aviation Network (EAN). The decision rejects the arguments of Inmarsat’s competitors, which have been trying for years to deprive European consumers of the pro-competitive, innovative and efficient EAN service offering.

Inmarsat operates EAN with Deutsche Telekom and has always known that its EAN platform complies with applicable EU rules.

Brad Swann, Inmarsat General Counsel, said: “Inmarsat welcomes the ruling of the European Court of Justice rejecting our competitors’ arguments aimed at limiting the operation of the European Aviation Network. EAN is an asset for Europe as a whole and it is proving very popular with passengers and airlines. Inmarsat looks forward to continuing to provide the rapidly growing number of EAN users with a world-leading in-flight connectivity experience.”

This decision by the ECJ is final and binding.

Inmarsat has always known that the allegations made by its competitors were entirely without merit and fundamentally misconceived. The legal actions by Inmarsat’s competitors were filed with the sole intention of artificially creating legal and regulatory uncertainty around EAN. The claims of Inmarsat’s competitors have been rejected by all national administrations in the 27 EU Member States and in the UK. Legal actions have also been rejected by courts in the countries where litigation was initiated by either Viasat or Eutelsat, including the UK (including on appeal, now final and binding), Germany and Belgium, as well as in not less than four other earlier decisions of the Court of Justice of the EU (three by the General Court and another one of the Court of Justice).

EAN is an award-winning inflight broadband solution based on outstanding technological innovation developed by European businesses, which has taken years of hard work and commitment by Inmarsat, Deutsche Telekom and a range of European technology partners to deliver. It is providing high quality connectivity services to thousands of passengers on hundreds of flights across Europe. The successful operation and roll-out continues and over the coming months thousands more European airline passengers will be able to experience a world-class cabin Wi-Fi service.


Gogo

Jet Edge, a leader in full-service private aviation, is proud to announce a new partnership with Gogo Business Aviation, the industry’s top inflight internet provider. The long-term partnership will upgrade Jet Edge’s AdvantEdge and Managed super-mid and large cabin fleet to AVANCE L5, Gogo’s most popular connectivity system that delivers a robust inflight 4G Wi-Fi experience.
Jet Edge offers the most extensive and elevated selection of point-to-point super-mid Bombardier Challenger and large cabin Gulfstream aircraft in the United States, and will have the first-ever fleet to be entirely equipped with Gogo AVANCE L5. The conversion is slated for final completion by end of Q3-2021. The commitment to an all-AVANCE L5 Charter fleet has already begun, with over 20 aircraft now equipped with Gogo’s 4G Wi-Fi connectivity. Gogo’s advanced system enables the use of popular streaming services such as Netflix, YouTube, and Hulu, video conferencing, and on-demand movie viewing. Passengers are able to access high-speed internet for web browsing on their personal smartphones, laptops, and tablets. Real-time data for cockpit apps, and remote diagnostics and support are also available.


Boeing

Boeing and Dubai Aerospace Enterprise (DAE) announced the aircraft lessor is growing its 737 MAX portfolio with an order for 15 737-8 jets. DAE had been investing in the 737 MAX by buying jets from existing customers and leasing them back to the carriers. The new order is DAE’s first direct 737 MAX purchase from Boeing as it modernizes its portfolio for better economic and environmental performance.

The order will appear on Boeing’s Orders and Deliveries website once finalized.

Firoz Tarapore, Chief Executive Officer of DAE, said: “We are delighted to deepen our already strong relationship with Boeing. Including this order, we own and manage 162 Boeing aircraft. An increasing number of global aviation regulators are returning the MAX to the skies. We are confident in the success of these aircraft as domestic and regional air travel are seeing strong signs of recovery.”

The new purchase is DAE’s second investment in the 737 MAX in the past year. In the third quarter of 2020, the lessor signed an agreement with American Airlines to purchase and lease back 18 new 737-8 airplanes. Since the agreement, the lessor has delivered 17 of the jets to the U.S. carrier. DAE previously completed a similar purchase-leaseback deal with Brazilian carrier GOL for five 737-8s.

“DAE has been instrumental in helping its customers realize the operating economics and environmental performance of the 737-8. We are delighted that they have come back to add more 737 aircraft to its growth plan as it positions itself for the recovery in commercial passenger traffic,” said Ihssane Mounir, Boeing senior vice president of Commercial Sales and Marketing. “We are honored by DAE’s trust in the 737 family and we look forward to partnering with them to serve the fleet requirements of airlines around the world.”

The 737-8 is a member of the 737 MAX family which is designed to offer more fuel efficiency, reliability and flexibility in the single-aisle market. The airplane can fly 3,550 nautical miles – about 600 miles farther than its predecessor – allowing airlines to offer new and more direct routes for passengers. Compared to the airplanes it replaces, the 737-8 also delivers superior efficiency, using 16% less fuel and significantly reducing CO2 emissions and operating costs.

Also From Boeing:

Boeing projects global and diversified funding will continue to flow into the aircraft financing sector as the aviation sector navigates the global pandemic and vaccine deployment continues to accelerate.

“Financiers and investors understand the industry’s resilience and the long-term fundamentals that make aircraft a valuable asset class,” said Tim Myers, president of Boeing Capital Corporation. “Despite the unprecedented impacts of COVID-19 on the global aerospace industry, there generally continues to be liquidity in the market for our customers, and we expect it to further improve as travel begins to rebound.”

The 2021 Current Aircraft Finance Market Outlook (CAFMO), the first published since 2019, reflects Boeing’s near-term view of market dynamics and assesses financing sources for new commercial airplane deliveries. Due to the ongoing impacts of the pandemic, the 2021 CAFMO excludes its customary one- and five-year industry financing projections.

“Industry fundamentals continue to show varying degrees of strength in different markets depending on the regional trends of the global pandemic,” Myers said. “We expect that capital will continue to be routed into the sector by established players and as new entrants seek opportunities during the industry’s recovery.”

The 2021 CAFMO reports the aircraft financing environment ended 2020 with enough liquidity to finance deliveries, but with stresses particularly in the bank debt and tax equity markets. The 2021 CAFMO, an introductory video and regional financing data is available at here. Select highlights include the following:

  • At the industry level, commercial aircraft delivery funding volume totaled $59 billion, a 40% decrease from 2019 levels.
  • The top sources of Boeing delivery financing were cash, bank debt and capital markets, and 100% of Boeing deliveries were financed by third parties.
  • Aircraft lessors executed a significant volume of sale-leaseback transactions, and the industry-wide leased fleet climbed to 46%.
  • Capital markets for aviation volumes were 70% higher than 2019.
  • Commercial banks shored up the aviation industry’s need for liquidity early in the pandemic, but long-term bank debt became one of the less utilized forms of financing.
  • Institutional investors and funds continued to seek aviation exposure, stepping up as some financiers paused and sector credit spreads widened.
  • Export credit agencies remain a small but important funding source during the pandemic.
  • Credit-enhanced financing saw further progress as a complementary funding source, totaling to 4% of the financing mix for Boeing deliveries.

The Boeing 2020 Commercial Market Outlook, a separate annual 20-year forecast addressing the market for commercial airplanes and services, projects passenger traffic growth at an average rate of 4% per year. The global commercial fleet is expected to reach 48,400 by 2039, up from 25,900 airplanes today.


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