Refund process of trips cancelled due to the pandemic to begin immediately
MONTRÉAL, April 29, 2021 /CNW Telbec/ – Transat A.T. Inc. (“Transat” or the “Corporation“) announced today that it has reached an agreement with the Government of Canada to borrow up to $700 million in additional liquidity through the Large Employer Emergency Financing Facility (LEEFF).
“The agreement reached with the Government of Canada provides us with an additional $700 million in liquidity, which is the amount we needed to move forward with confidence. Our strong balance sheet prior to the pandemic and the aggressive actions we have taken since have enabled us to weather this unprecedented crisis so far. With this support, we now look forward to resuming operations as soon as safe travel is possible and travel restrictions can be lifted. We will then be able to implement our plan to make Transat a solid and profitable company once again, one that will continue to symbolize leisure travel for its many customers in Quebec and elsewhere,” declared Jean-Marc Eustache, President and Chief Executive Officer.
“The funds obtained will also enable us to reimburse our customers whose travel had to be cancelled due to the pandemic under conditions that are sustainable for the company, which we welcome.”
The new fully repayable credit facilities made available by the Canada Enterprise Emergency Funding Corporation under the Large Employer Emergency Financing Facility, which Transat would use only on an as-needed basis, are as follows:
- An amount of $390 million, representing the liquidity needed to support Transat until its business has recovered to a level where it can generate cash once again, broken down as follows:
- An amount of $78 million in the form of a non-revolving and secured credit facility bearing interest at CDOR (Canadian Dollar Offered Rate) plus 4.5% and maturing in 2 years; the facility is secured by a first-ranking charge on the assets of Transat A.T. Inc.
- A $312 million non-revolving and unsecured credit facility with a 5-year maturity, loaned at a rate of 5% in the first year, increasing to 8% in the second year, and by 2% per annum thereafter, with the possibility of capitalization of interest in the first two years.
- In the context of the financing arrangement, Transat issued a total of 13,000,000 warrants for the purchase of an equivalent number of shares of Transat (subject to certain limitations described below), with customary adjustment provisions, at an exercise price of $4.50 per share (representing the volume-weighted average trading price for the five trading days preceding the issuance of the warrants) over a 10-year period, representing 18.75% of the total commitment available under the above non-revolving and unsecured credit facility. The warrants are to vest in proportion to the drawings that will be made, and 50% would be forfeited if the loan were to be repaid in full in the first year.
- An amount of $310 million consisting of an unsecured credit facility to provide reimbursement to travelers who were scheduled to depart on or after February 1, 2020, for whom a travel credit was issued as a result of COVID–19. This amount is repayable over a 7-year term and is loaned at the current 7-year Canada Bond rate of 1.2%.
The number of shares issuable upon exercise of the warrants may not exceed 25% of the current number of issued and outstanding shares, nor may it result in the holder owning 20% or more of the outstanding shares upon exercise of the warrants. In the event of an exercise of warrants that surpasses these thresholds, the excess will be payable in cash on the basis of the difference between the market price of Transat’s shares and the exercise price. Finally, in the event that the credit facility is repaid in full by its maturity, Transat will have the right to redeem all of the warrants for a consideration equal to their fair market value. The warrants will not be transferable prior to the expiry of the period giving rise to the exercise of such redemption right. In addition, the holder of the warrants will benefit from registration rights to facilitate the sale of the underlying shares and the warrants themselves (once the transfer restriction has been lifted).
In connection with the establishment of these credit facilities, Transat has made certain commitments, including:
- The reimbursement of travelers who were scheduled to depart on or after February 1, 2020, to whom a travel credit has been issued due to COVID-19. Refunds will begin immediately, with terms to be communicated separately. As per the agreement, to be eligible, customers will need to expressly indicate their desire for a refund;
- Restrictions on dividends, stock repurchases and executive compensation;
- Maintaining active employment at the level of April 28, 2021.
In addition to the new funding, the amounts already drawn on the existing facilities will remain in place and will be extended for a period of two years from the implementation of the new financing. The ratios applicable to the existing facilities will be suspended for a period of 18 months. The undrawn credit under the short-term subordinated facility will be cancelled.
In total, the available financing will therefore represent a maximum of $820 million. This includes the newly issued LEEFF funding, as well as existing funding of $120 million divided into $50 million under the secured revolving credit facility with National Bank of Canada and the Bank of Nova Scotia and $70 million under the subordinated credit facility with National Bank of Canada and Export Development Canada.
If all of the available facilities were to be used, it would be at an average rate of approximately 6%, plus the warrants.
Transat A.T. Inc. is a leading integrated international tourism company specializing in holiday travel. Under the Transat and Air Transat banners, the Corporation offers vacation packages, hotel stays and air travel to some 60 destinations in over 25 countries in the Americas and Europe. Transat is firmly committed to sustainable tourism development, as reflected in its multiple corporate responsibility initiatives over the past 14 years and obtained Travelife certification in 2018. The Corporation is based in Montréal (TSX: TRZ).
How Much Fuel Does A Jet Aircraft Use During A Typical Flight?
Most of us take for granted the fact that airplanes just fly when we get on them. We often completely overlook the technicalities involved in achieving flight. And one of the key areas that few of us consider is the amount of fuel that is used by jet aircraft.
When you start to examine the numbers associated with this issue, they start to get pretty big, pretty quick. In fact, a jet aircraft uses a phenomenal, almost incomprehensible, amount of fuel. For example, a Boeing 747 burns up to one gallon of fuel every second. Yes, every second! That means that during a five-hour flight, a Boeing 747 will burn 18,000 gallons of fuel.
Compare that to the average motor vehicle. The average level of consumption for a new car is approximately 55 miles to the gallon, which means that in order to burn 18,000 gallons of fuel, which would be used in a single flight between New York and Europe, a car would have to travel almost exactly a million miles.
So we can see straight away from these figures that fuelling jet airplanes is a serious logistical challenge. But the comparison is not as simple as it might seem initially. Every airliner is carrying considerably more people than the average car; in the case of the Boeing 747, it’s 568 in total. But even if the flight isn’t fully occupied, and only around 500 seats are sold, it becomes clear that air travel isn’t as uneconomical as it first appears.
When this is taken into consideration, a Boeing 747 is, in fact, burning only 0.01 gallons per person onboard for every mile that it travels. This means that the aircraft is actually achieving 100 miles to the gallon for every passenger. That means the jetliner is ultimately nearly twice as fuel-efficient as a car carrying one person. Of course, the figures change as more people travel in a car, which is why carpooling and other ecologically friendly forms of commuting are often advocated.
When it comes to fuelling aircraft, there are strict guidelines in place because of the vast amounts involved. Airlines have to comply with regulatory procedures, which are broadly similar across the world. But under FAA and EASA regulations, the Captain of an aircraft is responsible for ensuring that it has enough fuel before taking off.
This fuel store comprises:
- Trip fuel
- Diversion fuel
- Reserve fuel
- Contingency fuel
- Taxi fuel
- Additional fuel
There are strict stipulations in place for each of these; for example, contingency fuel is required to be at least 5% on top of the total fuel required for the trip.
Most aircraft have vast reserves for storing fuel, with the 747 capable of carrying over 52,000 gallons. Fuel costs for carriers can be pretty staggering, with one flight from London to New York costing around $25,000 in fuel. However, when averaged across the presumed 500 passengers, this only works out at $50 per person – hence the fact that air travel is affordable.
JetBlue Expands Airbus A220 Services Out Of Boston
JetBlue is growing its Airbus A220 presence out of Boston. The airline will be scheduling more routes with the jet starting later this year. Currently, the airline is flying its Airbus A220-300 primarily down to Florida out of Boston. Now, the airline will be growing that footprint to include Texas, Tennessee, and New York.
JetBlue plans additional Airbus A220-300 routes
JetBlue will add the Airbus A220 to four routes out of Boston Logan International Airport (BOS):
The four new routes will complement the following airports where JetBlue is already flying, or will fly, with the Airbus A220:
As such, three of the four new routes will expand the A220’s route profile out of Florida. This comes as JetBlue will take on more Airbus A220s. According to The Points Guy, the four new routes will start with service from September 8th.
Analyzing the A220 routes
JetBlue will be replacing a mix of jets on these routes. Most of the aircraft currently operating those routes are Airbus A320 aircraft. Come September, the airline will replace those routes with A220 operations.
There are some exceptions. The Embraer E190, which the A220 is largely slated to replace, does have a history of operating some of these routes. This includes Fort Myers, Nashville, and New York-LaGuardia.
However, some of these routes, such as Austin, are historically legacy Airbus A320 routes. In those instances, JetBlue is using the Airbus A220 during lower demand periods. September and October are typically slower months in the US. As such, replacing the A320 with an A220 will allow JetBlue to cut capacity slightly and have a better shot at filling up its planes.
The Airbus A220-300 is also being deployed in competitive markets. Austin is turning into an American Airlines focus city. Nashville is a strong Southwest market. Florida is a very competitive market, with many airlines significantly boosting services to and from the states.
The Airbus A220 will allow JetBlue to offer a competitive product in competitive marketplaces with competitive operating economics. Essentially, it is the perfect airplane for these JetBlue routes – especially during off-season travel times.
About JetBlue’s Airbus A220s
JetBlue currently only plans to fly the Airbus A220-300. The first A220 entered revenue service just a couple of weeks ago between Boston and Tampa.
JetBlue’s Airbus A220s are outfitted in a 2-3 configuration, meaning fewer middle seats on the aircraft than an Airbus A320 or A321. However, the Embraer E190s it will replace features a 2-2 configuration.
Nevertheless, the Airbus A220-300 will be a huge upgrade for passengers. The plane has bigger windows, larger overhead bins, and power available at all seats.
JetBlue also offers its passengers on-demand inflight entertainment through seatback screens. The Airbus A220 also offers WiFi, so passengers can choose whether they want to work on the flight or indulge in complimentary inflight entertainment.
Are you going to fly any of these JetBlue Airbus A220 routes? Let us know in the comments!
What Happened To Embraer’s CBA 123 Vector Aircraft?
Earlier this week, we reported on why Embraer is no longer a state-run company. While researching these events, it was evident that the CBA 123 Vector program contributed heavily to the transition of the Brazilian manufacturer. So what was this aircraft? Let’s take a look.
CBA 123 Vector was a project that brought the aircraft manufacturing industries of two South American powerhouses together. At the turn of, 1986 the Argentine Air Force recommended collaborating with Brazil’s industry to launch a turboprop that could perform like a jet. Thus, the leadership of both nations signed an agreement for Embraer and Argentina’s FMA/FAMA to manufacture the ambitious plane.
“The aircraft was originally called “Paraná” by the Argentinians and “Tapajós” by the Brazilians, but as the target was the international market, a globally pronounceable name was necessary,” Embraer shares on its website.
“Therefore, an international competition was launched, receiving more than six thousand suggestions. The name Vector was chosen.”
The CBA 123 Vector had a length of 18.09 m (59 ft 4 in), a wingspan of 17.72 m (58 ft 2 in), and a height of 5.97 m (19 ft 7 in). With its small stature, the plane could fit just 19 passengers with two flight deck crew members.
Two Garrett TPF351-20A turboprops would help the aircraft reach a maximum cruising speed of Mach 0.50 (612 km/h). Meanwhile, it would have reached a range of up to 1,872 km (1,010 NM).
The CBA 123 performed its first flight on July 18th, 1990. Embraer was so proud that it even presented the plane at the United Kingdom’s Farnborough International Air Show later on that year.
A different direction
Even though there was progress in the development of the plane, the price of introducing such an aircraft was too high at the time. With the systems needed to maintain the plane being in their infancy, the fees were notably too much. Each finished production would cost $5 million ($10m today), which was significant for the market during this period.
Embraer also notes the oil crisis adding to the pains of the industry. It adds that regional airlines were adopting new trends that focused on higher capacity models.
It wasn’t only too costly for the end purchaser. Embraer needed funds to keep the program going. However, it couldn’t expect any immediate cash injections from authorities as Brazilian president Collor de Mello was up against an impeachment saga. Subsequently, Embraer had little choice but to scrap the $300 million project in 1991.
The project’s failure even led to Embraer steering further into a financial crisis, which ended up with the privatization of the company a few years later. Overall, despite the struggles during the early 1990s, Embraer managed to hold on and produce several successful regional jets that are loved by airlines across the globe.
What are your thoughts about the CBA 123 Vector program? Would you have liked to fly on the aircraft? Let us know what you think of the plane in the comment section.
What Happened To South African Airways’ Airbus A300s?
Earlier this week, we took a look at where South African Airways’ various examples of the Boeing 747 ended up. The 747 was a game-changing jetliner when it first flew in the 1970s, and European manufacturer Airbus launched a similarly ground-breaking plane during this decade: the A300. SAA also operated this type, which was the world’s first-ever twin-engine widebody jet. But what became of the nine examples that SAA operated?
Why did SAA operate the A300?
South African Airways began operating the Airbus A300 in 1976, two years after it entered service with Air France. With the aircraft being a world first in terms of being a widebody design with just two engines, the A300 firmly placed Airbus on the map.
As well as being a game-changing passenger and freight aircraft, Airbus later used the type as a testbed for its fly-by-wire technology. This was pioneered by the late Bernard Ziegler, whose life and achievements Simple Flying explored yesterday. Airbus introduced the fly-by-wire system on its A320, which Air France launched in April 1988.
In terms of SAA, the South African flag carrier opted to take on the A300 as a means of replacing its Boeing 707s. There was a four-year overlap between these aircraft and the A300s that replaced them, with SAA’s last 707 service flying on December 26th, 1980.
According to Planespotters.net, South African Airways’ first four A300s belonged to the ‘B2’ variant. Two of these aircraft joined the airline in 1976 (ZS-SDA and ZS-SDB), with the other pair (ZS-SDC and ZS-SDD) coming onboard in the following year.
In terms of the fates of these aircraft, three of the four spent their entire careers with the South African flag carrier. After 25 years of service, these aircraft were eventually withdrawn and retired in 2000 and 2001. Two were broken up in Bournemouth in April and September 2002, with the other meeting its fate in Daytona Beach in November 2000.
ZS-SDB was the only one of SAA’s A300s not to spend its entire working life at the airline. Rather than being scrapped when 2001 came around, it was instead transferred to Turkish carrier Onur Air. After flying there for five years with an all-economy, 316-seat configuration, it was withdrawn in April 2006. Three years later, it was broken up in Istanbul.
SAA’s remaining five A300s were variants of the ‘B4’ series. This version of the A300 had an additional fuel tank at the center of the aircraft, providing extra capacity. One of these (ZS-SDG) was a convertible-freighter version designated as the C4.
SAA was the first recipient of this version, and it joined the airline in 1982. Apart from a year-long lease to much-loved Canadian carrier Wardair between August 1986 and August 1987, it stayed with the airline until October 2000. It remains active today at Kyrgyzstan’s Moalem Aviation, still carrying cargo at the ripe old age of nearly 39 years!
Of SAA’s standard B4s, ZS-SDE and ZS-SDF also enjoyed leases to Wardair. These aircraft have since been scrapped, having most recently flown for the aforementioned Onur Air in 2008 and 2009. This just leaves ZS-SDH and ZS-SDI, both of which were second hand upon their arrival at SAA. They had entered service with Singapore Airlines in 1982 and 1983.
ZS-SDH came straight to SAA from the Singaporean flag carrier in 1987, while ZS-SDI had spent an interim period at Luxair. They eventually left SAA in the 1990s, and their final operator in both cases was Turkish carrier MNG Airlines. This operator eventually withdrew them in 2005 and 2005, before breaking them up in Istanbul (ZS-SDH) and Karachi (ZS-SDI).
Did you ever fly on one of SAA’s one A300s? What did you make of the experience? Let us know your thoughts and memories in the comments.
Polystyrene Foam Market worth $32.2 billion by 2026 – Exclusive Report by MarketsandMarkets™
Chiliz Price Prediction 2021-2025: $1.76 By the End of 2025
Teamsters Lead Historic Defeat of CEO Pay at Marathon Petroleum
Amid XRP lawsuit, Ripple appoints former US Treasurer to its board, and names new CFO
TFT 11.9 B-patch nerfs Mordekaiser and LeBlanc
Apple is giving a laser company that builds some of its AR tech $410 million
Galaxy Digital Set To Buy BitGo for $1.2 Billion
Launch of Crypto Trading Team by Goldman Sachs
What Happened To Lufthansa’s Boeing 707 Aircraft?
Beyond the fanfare and SEC warnings, SPACs are here to stay
‘DeFi may lead to a paradigm shift’ says Federal Reserve Bank paper
Brembo Debuts Light-Up LED Brake Calipers
New York bill proposes to ban crypto mining for 3 years over carbon concerns
G20 TechSprint Initiative invites firm to tackle green finance
How to Become a Cryptographer: A Complete Career Guide
Egypt’s Flextock closes $3.25M in the largest pre-seed yet in MENA
Goldman Sachs Leads $15M Investment in Coin Metrics
Cybersecurity Degrees in Massachusetts — Your Guide to Choosing a School
Galaxy Digital to acquire crypto custodian BitGo for $1.2 billion
Miten tekoälyä käytetään videopeleissä ja mitä tulevaisuudessa on odotettavissa
Big Data1 week ago
AT&T shareholders vote against approving executive compensation
PR Newswire3 days ago
Polystyrene Foam Market worth $32.2 billion by 2026 – Exclusive Report by MarketsandMarkets™
Energy1 week ago
Ozop Energy (OZSC) Secures $2.1 Million in Purchase Orders for Photo-Voltaic Energy System Components
Aviation1 week ago
A Clean Sheet Widebody: The Story Of The Airbus A350
Blockchain7 days ago
Munger ‘Anti-Bitcoin’ and Buffett ‘Annoyance’ Towards Crypto Industry
Blockchain1 week ago
Ethereum hits $3,000 for the first time, now larger than Bank of America
Blockchain1 week ago
Cardano Expands Further Into Africa to Streamline Vital Services
Aviation5 days ago
American Airlines Passenger Arrested After Alleged Crew Attack
Blockchain5 days ago
The Reason for Ethereum’s Recent Rally to ATH According to Changpeng Zhao
Blockchain1 week ago
DefiDollar Is Now Listed On AscendEX
Blockchain4 days ago
Chiliz Price Prediction 2021-2025: $1.76 By the End of 2025
Gaming1 week ago
New Pokemon Snap: How To Unlock All Locations | Completion Guide