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Guggenheim Airline ETF (FAA)

FAA is defunct since March 15, 2013. Lack of investor interest
  • Jan. 12, 2012, 1:01 PM
    Longtime airline investor TPG also (previous) has interest in buying American Airlines (AAMRQ) out of bankruptcy, according to the WSJ. Sources say the P-E firm has had discussions with the carrier and could line up a strategic buyer to join its bid. A deal - if it comes - is seen as closing several months down the road after American lightens up its debt load.
    | Jan. 12, 2012, 1:01 PM | Comment!
  • Jan. 12, 2012, 12:50 PM
    The WSJ reports that Delta Air Lines (DAL +1.1%) is assessing a bid for American Airlines (AAMRQ) and has hired Blackstone as an advisor for the process.
    | Jan. 12, 2012, 12:50 PM | Comment!
  • Jan. 12, 2012, 10:11 AM
    In bankruptcy filings made last night, American Airlines (AAMRQ) asks to keep 85 planes all of which are Boeing jets financed or leased through three different debt issuances. Industry watchers keep a close eye on the proceedings for clues as to whether the firm will sell itself or assets to peers.
    | Jan. 12, 2012, 10:11 AM | 1 Comment
  • Jan. 11, 2012, 11:14 AM
    The massive Indian market could soon be further opened up to foreign airlines, with a government panel recommending allowing overseas carriers to buy stakes of up to 49% in their Indian peers. The cabinet will reportedly decide on the issue in the near future.
    | Jan. 11, 2012, 11:14 AM | Comment!
  • Dec. 29, 2011, 9:24 AM
    British Airways (BAIRY.PK) finds a way to cut costs by using a lower fuel-burn coating on aircraft that reduces drag by smoothing out surfaces. The carrier says it hope to yield a savings of £100K ($154K) per plane, as it initiates a plan to expand the program to its fleet of Boeing 777s.
    | Dec. 29, 2011, 9:24 AM | Comment!
  • Dec. 21, 2011, 12:25 PM
    Fitch Ratings says today's ruling (I, II) on the legality of imposing a carbon tax scheme on global airlines will "pave the way" for a far-reaching dispute over access to the EU aviation market. "We believe threats of trade retaliation over the EU's cap and trade system will pose growing threats to aviation market access in both developed and emerging markets next year."
    | Dec. 21, 2011, 12:25 PM | Comment!
  • Dec. 21, 2011, 10:39 AM
    Fitch estimates that $85B-$90B of funding will be required in 2012 for new commercial aircraft deliveries, +20% from 2011. While financing is tighter in the EU, Fitch expects alternative sources to fill the gap, such as lessors, public markets and Asian banks. Either way, financially strong airlines should be in a better position.
    | Dec. 21, 2011, 10:39 AM | Comment!
  • Dec. 21, 2011, 6:41 AM
    More on the EU carbon tax (previous): U.S. airlines stand to lose an estimated $3.1B between 2012 to 2020 if efforts in Congress to stop participation in the program aren't successful. Though the tax could also hit air cargo companies as well, UPS says it will reroute flights around European airports to avoid the cap-and-trade system.
    | Dec. 21, 2011, 6:41 AM | 2 Comments
  • Dec. 21, 2011, 6:03 AM
    The European Court of Justice rules that the EU can make airlines flying to or from the region's airports pay to offset their carbon emissions from Jan. 1. Airlines are unsurprisingly hostile, as is the U.S., where Congress has proposed legislation that would make it illegal to comply with the EU law.
    | Dec. 21, 2011, 6:03 AM | 4 Comments
  • Dec. 19, 2011, 11:10 AM
    Etihad Airways increases its stake in Air Berlin to over 29% with a €73M ($95M) investment in the firm. The move continues a trend of Gulf carriers aggressively expanding into European markets once dominated by legacy airlines.
    | Dec. 19, 2011, 11:10 AM | Comment!
  • Dec. 19, 2011, 9:12 AM
    JetBlue (JBLU) announces it will partner with Singapore Airlines to offer new connections from the U.S. to Europe and Singapore. The deal with expand JetBlue's reach into Asia by allowing customers to fly non-stop to Singapore and then connect to a total of 103 cities in 39 countries. Shares +1.6% premarket.
    | Dec. 19, 2011, 9:12 AM | Comment!
  • Dec. 16, 2011, 3:52 PM
    Delta Airlines (DAL +5.1%) joins a broader rally in airline stocks (FAA +2.8%) after announcing a major expansion of its flight offerings for its LaGuardia Airport hub, the fruits of a slot swap with US Airways (LCC). Total flights out of LaGuardia will increase by 60%, with many of the new routes targeting the hubs of rival carriers.
    | Dec. 16, 2011, 3:52 PM | 1 Comment
  • Dec. 15, 2011, 2:26 PM
    AMR CEO Tim Horton admits that the carrier could become a takeover target candidate from "opportunists" in a letter to employees that was more direct in tone and less defiant than previous communications about the firm's prospects out of bankruptcy. He also writes that AMR will restructure debt and aircraft leases, ground planes, and will "most certainly end the process with fewer people than we have today." Shares trade down 4.4% on the day on their inevitable path to being worthless.
    | Dec. 15, 2011, 2:26 PM | 9 Comments
  • Dec. 14, 2011, 1:26 PM
    Delta Air Lines (DAL +1.1%) and US Airways (LCC +7.1%) work out a strategic deal involving swapping landing slots at East Coast airports. DAL gives LCC 42 pairs of takeoff and landing slots at Washington's Reagan Airport and $66.5M in cash in exchange for 132 slot pairs at LaGuardia. Though regulators forced the sale of some slots to other carriers, the deal is expected to strengthen each airliner at their respective target airport.
    | Dec. 14, 2011, 1:26 PM | Comment!
  • Dec. 13, 2011, 1:03 PM
    Travelers to JFK Airport will rejoice that Delta Air Lines (DAL -4.4%) plans to spend $1.2B to upgrade its terminal there described as "dreadful" and a serious drag on sales from people aiming to avoid it. The carrier will consolidate all of its overseas gates into Terminal 4 and add a lounge big enough to fit five basketball courts, as it plays catch-up with rivals who have already upgraded operations at both NYC airports. O'Hare, anyone?
    | Dec. 13, 2011, 1:03 PM | Comment!
  • Dec. 13, 2011, 10:42 AM
    A press conference in Dallas with execs from Boeing (BA +2.2%) and Southwest Airlines (LUV +0.9%) over their blockbuster 737 MAX deal just concluded as the firms keep the LUV-fest between the two firms percolating. Highlights from Southwest CEO Gary Kelly: "One of the main challenges we face are high fuel costs and we are very much in need of new technology to reduce the fuel burn...for the near term we are not changing our fleet strategy...we will have flexibility in the future to manage our retirements and options that we can grow our fleet."
    | Dec. 13, 2011, 10:42 AM | Comment!
FAA Description
The Guggenheim/NYSE Arca Airline ETF (NYSE:FAA), the "Fund", seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the NYSE Arca Global Airline Index (the “Airline Index” or the “Index”). The Fund will at all times invest at least 80% of its total assets in common stock, American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. Guggenheim Advisors, LLC (the "Investment Adviser") seeks a correlation over time of 0.95 or better between the Fund’s performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before the Fund’s fees and expenses, the performance of the Airline Index. The Airline Index is a modified equal-dollar weighted Index designed to measure the performance of highly capitalized and liquid U.S. and international passenger airline companies identified as being in the airline industry, as defined below, and listed on developed and emerging global market exchanges. The Fund’s Index Provider, Archipelago Holdings Inc. (“Arca” or the “Index Provider”), an affiliate of NYSE Euronext, Inc., defines “developed markets” as countries with western-style legal systems, transparent financial rules for financial reporting and sophisticated, liquid and accessible stock exchanges with readily-exchangeable currencies.
See more details on sponsor's website
Sector: Services
Country: United States
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