Adrian is Auckland bureau chief for Aviation Week, based in New Zealand. He covers commercial aviation in the Asia-Pacific region.
Adrian was previously based in Aviation Week’s Washington office for nine years, writing for a range of the group’s publications and covering many aspects of the commercial aviation industry. He has won Australasian and international awards for his aviation writing.
Prior to joining Aviation Week in 2002, Adrian covered aviation industry and policy issues for two other publishing companies in Washington. He has also worked for newspapers in Texas and New Zealand, covering a wide range of topics. Adrian graduated from Auckland University with a degree in history and English in 1992.
American altered a credit agreement last week arranged by Citigroup and JPMorgan to remove certain cash-flow covenants. The previous covenant included a minimum ratio of cash flow to fixed charges, but these have been waived until June 30. The loan consists of an undrawn $225 million revolving credit facility maturing June 17, 2009, and a fully drawn $440 million secured term loan facility maturing Dec. 17 2010.
US Airways, Northwest and United appear most at risk for Chapter 11 bankruptcy filings out of the 10 major U.S. carriers, according to new research by JPMorgan. At current fuel prices, “legacy bankruptcies and/or merge-at-all-costs attempts are a question of when and not if,” say JP Morgan analysts. However, they also note that with mergers offering capital-raising potential, and low Chapter 11 incentives, “a sprint to the courthouse may be avoided if airlines raise sufficient capital now.”
ABX saw its revenue increase by more than one-third in the first quarter, although almost all of this was attributed to the new cargo businesses the company acquired last year. The revenue gain could not stop its net profit from sliding to $3.8 million, compared to $4.2 million in the first quarter of last year. This was primarily due to a $4.6 million increase in interest expenses associated with financing the acquisition of new businesses and aircraft. Setting aside interest, taxes and depreciation, ABX saw earnings grow 78% to $36.8 million.
