Korean Air’s 2012 capex down 35%

Source: Flightglobal.com
This story is sourced from Flightglobal.com

Korean Air will reduce its capital expenditure requirements by almost 35% this year.

The carrier anticipates W1.5 trillion ($1.34 billion) in aircraft capital expenditures, down from W2.4 trillion last year, Korean said in an analyst presentation.

The carrier will take delivery of 10 passenger aircraft this year including one 777-300ER, eight 737-800/900ERs and one Airbus A380 in November. Korean Air will also receive two 747-8Fs in February and March along with two 777-200F aircraft in February and June.

Three 737-800s are being leased from ILFC in the first half of 2012.

Two 737-900ERs are scheduled for May and June while the 777-300ER aircraft is planned for next month.

Last month Korean Air mandated TD Bank of New Jersey, as guaranteed lender, for its US Export Import bank financing request, on some Boeing deliveries.

In January state owned Korea Development Bank further increased its exposure to Korean Air after agreeing to refinance six Boeing aircraft. The bank was jointly mandated with German financier Deutsche Bank.

The transaction followed Korean Air's $300 million secured floating rate notes deal in late 2011, in which Korea Development Bank was the credit facility provider and swap provider.

Korean Air ended the year 2011 with a W2.28 trillion liquidity position, compared with W1.56 trillion at the end of 2010. At 31 December 2011, the carrier had W1.38 trillion cash and cash equivalents and W900 billion trade receivables.