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Boeing’s Delays Could Give Airbus’s A380 an Active Retirement

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Published: Monday, 30 January 2023 10:11

It is looking like Emirates Airline will need most if not all its A380s after all, opening an opportunity for investors in an obscure corner of the London stock market.

Emirates Airline has gradually brought mothballed Airbus A380s back into service.

The Airbus decrease; red down pointing triangle A380, the white elephant of the skies, could be getting a new lease on life. Among its merits: Unlike the Boeing BA 0.75%increase; green up pointing triangle 777X, it already exists.

One of the best-performing stocks in London in 2022, having more than doubled, is a tiny company that owned a single asset: one of the Airbus A380s in the Emirates Airline fleet. Most of the gains came in July, when the Dubai-based carrier agreed to buy the plane for about £25 million, equivalent to about $30 million, once its lease expired. The deal, which closed the week before Christmas, massively improved the expected liquidation value of the investment company, called Doric Nimrod Air One DNA 3.23%increase; green up pointing triangle (ticker: DNA).

By extension, the deal also lifted expectations of two sister vehicles, Doric Nimrod Air Two DNA2 0.47%increase; green up pointing triangle and Doric Nimrod Air Three DNA3 0.87%increase; green up pointing triangle, which between them own 11 Airbus A380s leased to Emirates on contracts that start to expire next October. Among the investors who spotted an opportunity is Elliott Management, which has disclosed stakes of roughly 11% and 14% in DNA2 and DNA3, respectively, as well as a 6% stake in a more complex vehicle, Amedeo Air Four Plus, which owns A380s as well as other planes leased to Thai Airways.

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Boeing 737 MAX Flies Again With Chinese Airline After Nearly Four-Year Halt

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Published: Monday, 23 January 2023 10:06

Long-awaited return to skies for the jetliner is a significant step for Boeing, which counts China as a major market

SINGAPORE—China returned Boeing Inc.’s BA 0.57%increase; green up pointing triangle 737 MAX to its skies Friday after almost four years, a significant milestone for the U.S. company, which relies on China as a major market.

Two of the jets, operated by China Southern Airlines ZNH 3.27%increase; green up pointing triangle, took off from the southern city of Guangzhou in what industry experts say are the first commercial flights since March 2019 by a Chinese airline using the aircraft.

The first left at 12:46 p.m. local time, landed two hours later at Zhengzhou and was scheduled to return later Friday, according to China Southern’s website. The other left later for Wuhan, also the first leg of a round-trip, the website showed.

The resumption of 737 MAX flights is a major step for Boeing. Before the pandemic, China was one of the biggest and most important buyers of airplanes in the world. Amid U.S.-China trade tensions, Boeing has sought to resume deliveries of new aircraft to China, including 737 MAX jets.

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Southwest Airlines Meltdown Prompts Questions From Big Investor

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Published: Monday, 16 January 2023 10:06

New York State Comptroller asks the carrier how it will prevent another widespread operations failure

Southwest Airlines Co.’s LUV -1.19%decrease; red down pointing triangle holiday meltdown has drawn the attention of a large public pension system with a history of shareholder activism.

New York State Comptroller Thomas DiNapoli, who oversees the state’s pension system, has asked the Dallas-based carrier how it will prevent another widespread operations failure and rebuild trust with the flying public and its own employees.

“Clearly this crisis has resulted in profound customer dissatisfaction and is expected to generate significant costs to the company,” Mr. DiNapoli, a Democrat, said in a letter Friday to Southwest Chief Executive Bob Jordan.

A Southwest spokeswoman said Monday that the airline received the Jan. 6 letter and is in the process of responding to the comptroller’s office.

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Lawmakers Plan to Scrutinize Southwest Cancellations, Federal Airline Refund Policies

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Published: Friday, 13 January 2023 15:05

WASHINGTON—Federal lawmakers have signaled that they will investigate the mass flight cancellations by Southwest Airlines Co., with some Democrats suggesting the Transportation Department should be more aggressive at protecting passengers.

Sen. Maria Cantwell (D., Wash.), who leads the Senate’s committee on transportation issues, said in a statement this week that its members will look into what caused the cancellations and how consumers were affected.

“The problems at Southwest Airlines over the last several days go beyond weather,” Ms. Cantwell said.

The airline canceled nearly two-thirds of its flights Tuesday, Wednesday and Thursday, part of an effort to dig out from a cascading meltdown after last week’s severe winter storm threw it into disarray. While other airlines were able to recover from the brutal weather within a few days, Southwest continued to spiral.

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