Airline industry getting busy.Miami-based private equity firm 777 Partners is currently in talks with manufacturers Boeing and ATR with regard to new aircraft orders. The aim of the organization is to invest in more aircraft, which would enable it to enter new markets amid the rapid recovery of air travel.
The 777 Partners, as reported by Reuters, is currently in talks with the turboprop aircraft manufacturer ATR, not only for new aircraft but also new technology and airline services. Reports suggested that if these talks reach a purchase agreement, the committed aircraft numbers would be triple digits.
These talks have been initiated primarily due to the rapid recovery of the aviation industry around the world, and one of the significant issues faced by various airlines is the lack of capacity to serve the extremely high passenger demand which exists.
While the talks for new aircraft are currently underway, the company is reportedly also exploring investment options in Asia, South America and says that it is close to finalizing an investment deal with an unnamed South African carrier.
Simple Flying has reached out to 777 Partners to learn more about the company's talks with aircraft manufacturers and to know which aircraft types are being considered. Any response received will be updated in this article.
Delivery delays
The report suggests that the organization's primary concern is regarding the delivery timeline of any new aircraft ordered. However, this concern is shared by airlines worldwide, and this is an issue faced by most aircraft manufacturers.
Several aircraft and aircraft equipment manufacturers have been facing supply chain issues over the past few years, primarily due to the effects of the pandemic. This has significantly affected the OEM's capability to deliver its products. This is also something pointed out by the CEO of Qatar Airways during a meeting Simple Flying attended last month during the Paris Air Show.
Not just aircraft deliveries but even engine manufacturers such as Pratt & Whitney are facing ongoing supply chain issues, which has left KLM Cityhopper with a number of their Embraer E195-E2 aircraft out of service.
777's orders and brands
The talks for potential new aircraft order comes over the existing orders previously made by the 777 Partners. Almost a year ago, at the 2022 Farnborough International Airshow, 777 Partners made a firm order with Boeing for 66 Boeing 737 MAX aircraft, which included the MAX 8 and the higher capacity MAX 8-200 variants.
The business model used by 777 is acquiring aircraft and leasing them to airlines and companies around the world, which it backs. The company's website shows that within aviation, it has seven brands.