Virgin Atlantic has entered a financing arrangement in which it mortgaged part of its slot portfolio at London Heathrow for $330 million, drawing scrutiny from UK aviation regulators and government authorities. The financing move was reportedly designed to fund shareholder dividends, in particular payments to U.S. partner Delta Air Lines.
Avolon Holdings Limited, a leading global aviation finance company, announced the early results of its cash tender offers for outstanding notes, with demand far exceeding initial expectations. Conducted through its wholly owned subsidiary Avolon Holdings Funding Limited, the process has led the company to raise its maximum tender cap from $750 million to $1 billion.
Nepal Airlines has now repaid $3.9 million in loan installments tied to the financing of its commercial aircraft fleet, consisting of two narrowbody and two widebody aircraft. This repayment is part of the carrier’s obligations from loans obtained for the acquisition of these aircraft during an earlier fleet modernization phase.
Norwegian has finalized a 10-year senior secured debt facility to support the acquisition of three mid-life Boeing 737-800 aircraft, further strengthening its single-aisle fleet for upcoming growth. The deal is expected to close during the third quarter of 2025 and underscores the airline’s strategy to own more of its fleet, reducing dependency on leases.
United Airlines, through its subsidiary MileagePlus Holdings and sub-entity MileagePlus Intellectual Property Assets, has redeemed in full all $1.52 billion aggregate principal of its 6.50% Senior Secured Notes due 2027. This strategic financial move eliminates a large portion of secured debt well ahead of maturity, demonstrating the company’s improved liquidity position and confidence in its capital structure.
TAP SGPS, the Portuguese airline group, is facing potential legal enforcement action after failing to repay $177 million owed to Azul Linhas Aéreas Brasileiras (Brazil). The debt relates to bonds issued in 2016 that were subscribed by Azul as part of a strategic investment agreement. TAP’s failure to meet the repayment deadline has now shifted control of the matter to the common representative of…
SKY Airline, a prominent low-cost carrier in Chile, is currently engaged in negotiations with bondholder Abra Group (UK) concerning its $100 million bond, which matures in Q4 2026. The bond includes a conversion option, allowing Abra to turn the debt into a 40% ownership stake in SKY. These talks could have major implications for the airline’s future ownership structure and financial independence.
Transat AT, a Canadian leisure airline and tour operator, has entered into an agreement in principle with the Canada Enterprise Emergency Funding Corporation (CEEFC) to restructure the significant debt it incurred during the COVID-19 pandemic. The debt was provided under the Large Enterprise Emergency Funding Facility (LEEFF)program, which was launched to assist major Canadian companies affected by the crisis.
Delta Air Lines, one of the leading U.S. carriers, has successfully completed a $2.0 billion public offering of unsecured notes. The move is part of the airline’s broader financial strategy to enhance liquidity and support long-term capital needs.
Caribbean Airlines has encountered serious financial difficulties, with Prime Minister Kamla Persad-Bissessar revealing that the airline’s previous board had misrepresented its economic condition to the country. This revelation underscores the depth of the carrier’s financial challenges and the apparent lack of transparency in its management.
