Alitalia’s obviously illegal loans from Italy won’t saddle its successor ITA as it launches in five weeks, thanks to a European Commission ruling handed down today.
Gogo announced its long-awaited debt refinancing deal this afternoon, a move that should deliver huge savings for the company. The move allows the company to retire a billion dollars of high-interest debt, reducing both the total leverage and the rate paid.
JetBlue expects new and extended spending cuts as well as increased debt headed in to 2021 as its recovery remains “volatile” and Thanksgiving came up short of targets.
Does it matter that airlines are flying planes worth more in the scrap yard than they are to a new owner? Probably not, but United’s latest effort to secure a $3bn loan is an interesting insight into the world of aircraft valuation considerations.
Global Eagle bought itself a few extra weeks. Literally. The company missed an $11 million interest payment on 9 July but negotiated an extension to the end of the month before it will be considered in default on the loan.
Good news for Global Eagle: The company announced this morning that it has extended its liquidity by $61mm over the next 18 months. But there is almost certainly a little more to the story.
Gogo appears to have solved its most significant short-term challenge, with a $900mm debt offering lined up to provide five years of breathing room as the company inches towards a positive free cash flow.