Boeing [NYSE: BA] expects China’s airlines to acquire 8,600 new airplanes valued at $1.4 trillion and commercial aviation services valued at $1.7 trillion over the next 20 years, reflecting an expected robust recovery following the COVID-19 pandemic. Boeing shared its annual China market forecast today as part of the 2020 Commercial Market Outlook (CMO), which shows anticipated demand for commercial airplanes and services.
China’s rapidly growing middle class, increased economic growth and growing urbanization are all factors in the Boeing forecast, suggesting the country will lead passenger travel globally in the next few years. Since 2000, China’s commercial jet fleet has expanded sevenfold, and approximately 25% of all aviation growth worldwide in the last decade has come from China. Boeing forecasts this trend will continue over the next 20 years.
“While COVID-19 has severely impacted every passenger market worldwide, China’s fundamental growth drivers remain resilient and robust,” said Richard Wynne, managing director, China Marketing, Boeing Commercial Airplanes. “Not only has China’s recovery from COVID-19 outpaced the rest of the world, but also continued government investments toward improving and expanding its transportation infrastructure, large regional traffic flows, and a flourishing domestic market mean this region of the world will thrive.”
Despite the challenges imposed by the pandemic, China’s projected airplane and services market represents a nearly 7% increase over last year’s 20-year CMO forecast. These increases are driven by continued high demand for single-aisle airplanes and China’s expanding share of passenger widebodies to support international routes, along with a large replacement cycle as China’s fleet matures. Boeing also anticipates growth in Chinese demand for new and converted freighters and digital solutions to help carriers further innovate and succeed.
The 2020 China CMO includes:
– Boeing forecasts China’s annual passenger traffic growth to be 5.5% over the next 20 years
– Boeing estimates operators will need more than 6,450 new single-aisle airplanes in China over the next 20 years. Single-aisle airplanes, such as the 737 family, continue to be the main driver of capacity growth
– In the widebody market, Boeing forecasts demand for 1,590 deliveries by 2039 in China. Widebody airplanes will account for 18% of China’s deliveries during the 20-year period, down 4% from last year’s forecast due to an anticipated slower recovery in global long-haul traffic
– China has the world’s highest e-commerce growth rate but significant room for development of air express shipping, presenting an opportunity for robust freighter demand
– Long-term aviation industry growth in China is expected to drive the need for 395,000 commercial pilots, cabin crew members and aviation technicians to fly and to maintain the country’s airplane fleet
ATR, the world number one regional aircraft manufacturer, has released two new editions of its Upgrades Catalogues. They now offer 120 solutions – developed either internally or externally – to ATR operators wishing to upgrade their aircraft with state-of-the-art designs and capabilities.
The creation of a catalogue of external changes – Supplemental Type Certificates (STC) and minor modifications developed and provided by external Design Organisation Approval (DOA) partners – is a major step forward for the market-leading turboprop manufacturer. ATR can now complement its own expertise with the know-how and resources of reliable external partners – Aero Engineering Services, Akka Technologies, ECM Skyservices, Eirtech Aviation Services, PMV Engineering and Recaero.
With solutions ranging from cabin reconfigurations, in-flight entertainment systems and avionics upgrades, to freighter conversions, ATR operators have access to a vast range of possibilities for their brand new or second-hand aircraft to explore new business opportunities, and enhance passenger experience and aircraft performance. All of these solutions have been either developed by ATR or benefit from the manufacturer’s expertise, which guarantees their optimal integration within the aircraft environment.
– Air cargo carrier responding to market demand for additional cargo capacity
– Demonstrates agility and innovation in business response to the pandemic
Emirates SkyCargo has started utilising its Airbus A380 aircraft on select cargo charter operations to transport urgently required cargo across its network. The first dedicated Emirates A380 ‘mini-freighter’ successfully transported medical supplies between Seoul and Amsterdam via Dubai.
Working collaboratively with the Engineering and Flight Operations teams within Emirates, the air cargo carrier has optimised the cargo capacity of the Airbus A380 to safely transport around 50 tonnes of cargo per flight in the bellyhold of the aircraft.
Emirates SkyCargo has introduced dedicated cargo operations on the A380 aircraft in response to the surge in the demand for air cargo capacity required for the urgent transportation of critical goods, including medical supplies for combatting COVID-19 in regions experiencing a second wave of the pandemic.
Emirates SkyCargo is working on further optimising the capacity of its Airbus A380 aircraft through measures such as seat loading of cargo and has planned more dedicated cargo flights on aircraft for the month of November.
A leading player in the global air cargo industry with a destination network spread across six continents, Emirates SkyCargo has continued to introduce innovative cargo solutions in line with rapidly evolving market conditions since the start of the COVID-19 pandemic.
The freight division of Emirates offers a variety of options for cargo capacity and connectivity to best match its customers’ requirements. Emirates SkyCargo operates dedicated cargo flights on its Boeing 777-F and its Boeing 777-300ER aircraft including 14 modified Boeing 777-300ER passenger aircraft with seats removed from Economy Class for additional cargo volume.
Through its responsiveness and agility, the air cargo carrier has been able to maintain the flow of essential goods and trade across international markets during the pandemic, often providing a much required helpline to communities around the world.
Taking a lead in the supply chain for the global distribution of a COVID-19 vaccine, Emirates SkyCargo announced recently that it set up the world’s largest EU GDP compliant airside hub in Dubai dedicated for the COVID-19 vaccine. In addition to world-class fit for purpose infrastructure for the storage of the vaccine, the facility would also be able to offer value added services such as repackaging, re-icing and redistribution of the vaccine. The air cargo carrier has also set up a rapid response team to coordinate requests for the movement of the vaccine.
Emirates SkyCargo currently offers cargo capacity on scheduled flights to 135 destinations across the world.
To commemorate 20 years of Acela service throughout the Northeast Corridor (NEC),Amtrak is Acela-celebrating by offering customers the opportunity to travel on its premium product one way in Business class for only $20 from anywhere between Boston and Washington, D.C. The sale is available for purchase from Tuesday, Nov. 10, to Thursday, Nov. 12 and is valid for travel between Nov. 16 through Dec. 17 with blackout dates during Thanksgiving week (Nov. 24, 25, and 28 through 30) and on Fridays and Sundays. Other restrictions may apply and the fare may not be available on all departures.
As part of its partnership with experts from the George Washington University Milken Institute School of Public Health, Amtrak’s new, enhanced safety initiatives and amenities, including the recently introduced Reserved Seating offering, will continue to be in effect for customers and employees on our trains and at our stations.
“Celebrating 20 years of Acela service is an incredible milestone that we are proud to celebrate. We would like to thank our customers and give them a chance to see the changes we’ve made to the experience by offering an exceptionally low fare of only $20,” said Amtrak Executive Vice President and Chief Marketing and Revenue Officer Roger Harris. “For anyone who has been curious about the premium travel experience on our flagship product, this is your chance to ride Acela for a special, low fare that is only available for two days.”
FRANKFURT (Reuters) – The head of the Berlin engine plant run by Mercedes-Benz has defected to rival Tesla <TSLA>, German union IG Metall said on Wednesday, calling on employees to protest over his departure.
IG Metall declined to name the head of the plant, which has been run by Rene Reif, one the most experienced manufacturing executives at Mercedes-Benz who helped expand manufacturing capacity for Daimler <DAI> in China.
Reif used to be head of engineering and manufacturing at Beijing Benz Automotive Co. Daimler’s Chinese joint venture, which has a manufacturing capacity of around 480,000 cars and started building the electric Mercedes-Benz EQC last year.
Tesla declined to comment on whether it had found a new manager for a Gigafactory being built on the outskirts of Berlin but the electric carmaker is on a global manufacturing expansion push, building or expanding new factories in Texas, Germany and China.
Last month, a source told Reuters that a Tesla manager who oversaw the construction of the electric carmaker’s Gruenheide plant, had left his position.
Daimler said on Wednesday that Reif, 57, the manager of its Mercedes-Benz Berlin plant, which makes powertrains, would go into early retirement at the end of the year, at his own request.
Mercedes-Benz Werk Berlin, Deutschland: Montage des Mercedes-Benz V6 Dieselmotor OM642
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Mercedes-Benz Berlin Plant, Germany: Assembly of the Mercedes-Benz V6 diesel engine OM642
German unions have lamented the fact that traditional carmakers are cutting investment into combustion engine technologies as regulators clamp down on emissions and as demand for vehicles is hit by the COVID-19 pandemic.
IG Metall said there would be a protest in front of the Mercedes factory on Thursday and called on Daimler to present solutions that would help to guarantee the future of the plant.
The union said Daimler managers had outlined cost savings plans and union officials fear the Berlin plant’s future is at risk.
Daimler said Clemenz Dobrawa, who currently heads up the Mercedes-Benz battery manufacturing plant in Kamenz, had taken over leadership of the Mercedes-Benz plants in Hamburg and Berlin earlier this month.
“Thanks to his activity as representative in Kamenz, he brings important know-how for the transformation toward electromobility,” Daimler said, adding the Berlin plant would be restructured to serve an ‘Electric First’ strategy.
(Reporting by Edward Taylor and Ilona Wissenbach. Editing by Jane Merriman)
Southwest Airlines will begin flying to Hawaii from a fourth city in California next spring, the airline announced.
Flights between San Diego and Kahului start on April 14, 2020, and San Diego and Honolulu flights will begin April 20, 2020.
More than a year after starting its Hawaii service in March, Southwest Airlines (NYSE: LUV) will finally meet its original stated Hawaiian goal of flying from each of its four California gateways.
Southwest currently flies to Hawaii from both Oakland and San Jose. The Dallas-based airline will begin flying out of Sacramento November 10.
Southwest Chief Executive Gary Kelly has also stated that Las Vegas is a possible Hawaii gateway, but the airline’s expansion has been slowed down by the grounding of its 737 Max fleet.
Hawaii flights have been operating above company expectations. Southwest is keen on keeping its existing market share and capturing more, which is why Hawaii flights were excluded from a recent system fare increase.
A Southwest Airlines jetliner taxis to a runway for take off at Denver International Airport as travellers deal with the effects of the new coronavirus Wednesday, June 10, 2020, in Denver. (AP Photo/David Zalubowski)
Southwest Airlines Company (NYSE: LUV) today published its initial flight schedules for both Chicago O’Hare International and Colorado Springs Municipal airports as the carrier continues expanding to bring the value and Hospitality of Southwest closer to more travelers and offers more destinations to fly for leisure and business travel.
“Our low fares and friendly policies, like no change fees* and bags fly free**, mean more today as they give people the peace of mind to book travel beyond 2020. We’re growing the reach of Southwest as we add more destinations across the United States while bringing our warm Hospitality and iconic Customer Service to more people than ever before,” said Andrew Watterson, Southwest Airlines Chief Commercial Officer and Executive Vice President. “These additional investments in Chicago and Colorado provide even more convenience for our current Customers while also making it more convenient for new travelers to choose Southwest as we begin service from their preferred airport.”
*Southwest has never charged change fees. A fare difference might apply. **Southwest allows travelers to check up to two bags for free (size and weight limits apply).
Chicago (O’Hare) service begins February 14, 2021 More than 35 years after landing at Chicago Midway International Airport, Southwest will expand its footprint in the Chicagoland area, adding complementing service from Chicago O’Hare International Airport starting Feb. 14, 2021. The carrier’s initial service will offer 20 departures daily from O’Hare, and the new service is available for purchase at Southwest.com with fares as low as:
– $39 one-way nonstop between Chicago (O’Hare) and Nashville (four times daily);
– $79 one-way nonstop between Chicago (O’Hare) and Baltimore/Washington (four times daily);
– $89 one-way nonstop between Chicago (O’Hare) and Denver (six times daily);
– $99 one-way nonstop between Chicago (O’Hare) and Dallas (Love Field) (four times daily)
– $109 one-way nonstop between Chicago (O’Hare) and Phoenix (twice daily).
The number of seats, days of week, and markets for these fares are limited. See full fares, and specific terms and conditions below and at Southwest.com.
During its more than three-decades of service to Chicago, Southwest has grown to become Chicago Midway’s largest airline while also employing more than 4,800 People in the city.
Colorado Springs service begins March 11, 2021 Southwest will also launch service from its fourth destination in Colorado when it takes off from Colorado Springs Municipal Airport on March 11, 2021. The new service links the Pikes Peak region nonstop with up to 13 flights a day to destinations across Southwest’s growing network. The new service is available now at Southwest.com with fares as low as:
– $29 one-way nonstop between Colorado Springs and Denver (four times daily);
– $59 one-way nonstop between Colorado Springs and Las Vegas (twice daily);
– $59 one-way nonstop between Colorado Springs and Phoenix (twice daily);
– $69 one-way nonstop between Colorado Springs and Dallas (Love Field) (three times daily)
– $89 one-way nonstop between Colorado Springs and Chicago (Midway) (twice daily).
Southwest continues growing across Colorado with new seasonal service to both Montrose (Telluride) and Steamboat Springs (Hayden) beginning Dec. 19, 2020. Just a few weeks later, on Jan. 3, 2021, Southwest will celebrate its 15th anniversary of service to Denver where it now employs more than 4,000 People and currently offers up to 220 nonstop departures per day during peak travel periods.
– Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding
– Proactively managing liquidity and transforming for the future
– Revenue of $14.1 billion, GAAP loss per share of ($0.79) and core (non-GAAP)* loss per share of ($1.39)
– Operating cash flow of ($4.8) billion; cash and marketable securities of $27.1 billion
– Total backlog of $393 billion, including more than 4,300 commercial airplanes
Table 1. Summary Financial Results
Third Quarter
Nine Months
(Dollars in Millions, except per share data)
2020
2019
Change
2020
2019
Change
Revenues
$14,139
$19,980
(29)%
$42,854
$58,648
(27)%
GAAP
(Loss)/Earnings From Operations
($401)
$1,259
NM
($4,718)
$229
NM
Operating Margin
(2.8)%
6.3%
NM
(11.0)%
0.4%
NM
Net (Loss)/Earnings
($466)
$1,167
NM
($3,502)
$374
NM
(Loss)/Earnings Per Share
($0.79)
$2.05
NM
($6.10)
$0.66
NM
Operating Cash Flow
($4,819)
($2,424)
NM
($14,401)
($226)
NM
Non-GAAP*
Core Operating (Loss)/Earnings
($754)
$895
NM
($5,773)
($864)
NM
Core Operating Margin
(5.3)%
4.5%
NM
(13.5)%
(1.5)%
NM
Core (Loss)/Earnings Per Share
($1.39)
$1.45
NM
($7.88)
($1.13)
NM
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
The Boeing Company [NYSE: BA] reported third-quarter revenue of $14.1 billion, GAAP loss per share of ($0.79) and core loss per share (non-GAAP)* of ($1.39), reflecting lower commercial deliveries and services volume primarily due to COVID-19 (Table 1). Boeing recorded operating cash flow of ($4.8) billion.
“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” said Boeing President and Chief Executive Officer Dave Calhoun. “Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic. We remain focused on the health and safety of our employees and their communities. I’m proud of the dedication and commitment our teams have demonstrated as they continued to deliver for our customers in this challenging environment. Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust.”
Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737 MAX, including rigorous certification and validation flights conducted by the U.S. Federal Aviation Administration, Transport Canada and the European Union Aviation Safety Agency. The Joint Operational Evaluation Board, featuring civil aviation authorities from the United States, Canada, Brazil, and the European Union, also conducted its evaluations of updated crew training. The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.
To adapt to the market impacts of COVID-19 and position the company for the future, Boeing continued its business transformation across five key areas including its infrastructure footprint, overhead and organizational structure, portfolio and investment mix, supply chain health and operational excellence. As the company resizes its operations to align with market realities, Boeing expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, and recorded additional severance costs in the third quarter.
Table 2. Cash Flow
Third Quarter
Nine Months
(Millions)
2020
2019
2020
2019
Operating Cash Flow
($4,819)
($2,424)
($14,401)
($226)
Less Additions to Property, Plant & Equipment
($262)
($465)
($1,038)
($1,387)
Free Cash Flow*
($5,081)
($2,889)
($15,439)
($1,613)
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
Operating cash flow was ($4.8) billion in the quarter, reflecting lower commercial deliveries and services volume primarily due to COVID-19, as well as timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances
Quarter-End
(Billions)
Q3 20
Q2 20
Cash
$10.6
$20.0
Marketable Securities1
$16.5
$12.4
Total
$27.1
$32.4
Debt Balances:
The Boeing Company, net of intercompany loans to BCC
$59.1
$59.5
Boeing Capital, including intercompany loans
$1.9
$1.9
Total Consolidated Debt
$61.0
$61.4
1Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”
Cash and investments in marketable securities decreased to $27.1 billion, compared to $32.4 billion at the beginning of the quarter, primarily driven by operating cash outflows (Table 3). Debt was $61.0 billion, down from $61.4 billion at the beginning of the quarter due to the repayment of maturing debt.
Total company backlog at quarter-end was $393 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Commercial Airplanes Deliveries
28
62
(55)%
98
301
(67)%
Revenues
$3,596
$8,249
(56)%
$11,434
$24,793
(54)%
Loss from Operations
($1,369)
($40)
NM
($6,199)
($3,813)
NM
Operating Margin
(38.1)%
(0.5)%
NM
(54.2)%
(15.4)%
NM
Commercial Airplanes third-quarter revenue decreased to $3.6 billion, reflecting lower delivery volume primarily due to COVID-19 impacts as well as 787 quality issues and associated rework. Third-quarter operating margin decreased to (38.1) percent, primarily driven by lower delivery volume, as well as $590 million of abnormal production costs related to the 737 program.
Commercial Airplanes added the final 777X flight test airplane to the test program and the GE9X engine received FAA certification. In October, the company decided it will consolidate 787 production in South Carolina in mid-2021, which did not have a significant financial impact on the program in the third quarter. Commercial Airplanes delivered 28 airplanes during the quarter, and backlog included over 4,300 airplanes valued at $313 billion.
Defense, Space & Security
Table 5. Defense, Space & Security
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Revenues
$6,848
$7,002
(2)%
$19,478
$20,168
(3)%
Earnings from Operations
$628
$754
(17)%
$1,037
$2,581
(60)%
Operating Margin
9.2%
10.8%
(1.6) Pts
5.3%
12.8%
(7.5) Pts
Defense, Space & Security third-quarter revenue decreased to $6.8 billion, primarily due to derivative aircraft award timing, partially offset by higher fighter volume (Table 5). Third-quarter operating margin decreased to 9.2 percent reflecting less favorable performance, including a $67 million KC-46A Tanker charge.
During the quarter, Defense, Space & Security received an award for eight F-15EX advanced fighter aircraft for the U.S. Air Force and a contract extension for the International Space Station for NASA, as well as contracts for nine additional MH-47G Block II Chinook helicopters for the U.S. Army Special Operations and four additional 702X satellites. Also in the quarter, the U.S. Air Force and Boeing team was awarded the Collier Trophy for aerospace excellence for the X-37B autonomous spaceplane. Significant milestones included inducting the 20th U.S. Navy F/A-18 into the Service Life Modification program as well as delivering the firstBell Boeing V-22 Osprey to Japan and the first MH-47G Block II Chinook to the U.S. Army Special Operations.
Backlog at Defense, Space & Security was $62 billion, of which 30 percent represents orders from customers outside the U.S.
Global Services
Table 6. Global Services
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Revenues
$3,694
$4,658
(21)%
$11,810
$13,820
(15)%
Earnings from Operations
$271
$673
(60)%
$307
$2,013
(85%)
Operating Margin
7.3%
14.4%
(7.1) Pts
2.6%
14.6%
(12.0) Pts
Global Services third-quarter revenue decreased to $3.7 billion, driven by lower commercial services volume due to COVID-19, partially offset by higher government services volume (Table 6). Third-quarter operating margin decreased to 7.3 percent primarily due to lower commercial services volume and additional severance costs.
During the quarter, Global Services signed an agreement with GECAS for 11 737-800 Boeing Converted Freighters, secured a six-year P-8A support contract for the Royal Australian Air Force, and was awarded F-15EX training and services support contracts by the U.S. Air Force. Global Services also delivered the first P-8A Operational Flight Trainer for the United Kingdom Royal Air Force.
Additional Financial Information
Table 7. Additional Financial Information
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
2020
2019
Revenues
Boeing Capital
$71
$66
$205
$207
Unallocated items, eliminations and other
($70)
$5
($73)
($340)
Earnings from Operations
Boeing Capital
$30
$29
$47
$86
FAS/CAS service cost adjustment
$353
$364
$1,055
$1,093
Other unallocated items and eliminations
($314)
($521)
($965)
($1,731)
Other income, net
$119
$121
$325
$334
Interest and debt expense
($643)
($203)
($1,458)
($480)
Effective tax rate
49.6%
0.8%
40.1%
(350.6)%
At quarter-end, Boeing Capital’s net portfolio balance was $2.0 billion. The change in revenue and earnings from other unallocated items and eliminations was primarily due to the timing of cost allocations. Earnings from other unallocated items and eliminations was also impacted by lower enterprise research and development expense. Interest and debt expense increased due to higher debt balances. The third quarter effective tax rate reflects tax benefits related to the five year net operating loss carryback provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as the impact of pre-tax losses.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
Core operating earnings is defined as GAAP earnings from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs, comprising service and prior service costs computed in accordance with GAAP are allocated to Commercial Airplanes and BGS businesses supporting commercial customers. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on pages 12-13.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation of free cash flow to GAAP operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) the COVID-19 pandemic and related government actions, including with respect to our operations, our liquidity, the health of our customers and suppliers, and future demand for our products and services; (2) the 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, lower than planned production rates and/or delivery rates, and increased considerations to customers and suppliers, (3) general conditions in the economy and our industry, including those due to regulatory changes; (4) our reliance on our commercial airline customers; (5) the overall health of our aircraft production system, planned commercial aircraft production rate changes, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; (6) changing budget and appropriation levels and acquisition priorities of the U.S. government; (7) our dependence on U.S. government contracts; (8) our reliance on fixed-price contracts; (9) our reliance on cost-type contracts; (10) uncertainties concerning contracts that include in-orbit incentive payments; (11) our dependence on our subcontractors and suppliers, as well as the availability of raw materials; (12) changes in accounting estimates; (13) changes in the competitive landscape in our markets; (14) our non-U.S. operations, including sales to non-U.S. customers; (15) threats to the security of our or our customers’ information; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in our customer financing portfolio; (18) changes in our ability to obtain debt financing on commercially reasonable terms and at competitive rates; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (22) work stoppages or other labor disruptions; (23) substantial pension and other postretirement benefit obligations; and (24) potential environmental liabilities.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Demand for international rail services between Germany and Switzerland has increased rapidly in recent years. At the Basel border crossing alone the number of passengers has increased by over 25 per cent in the past five years. Given the increasing importance of climate protection, the increase in travel by rail, an environmentally friendly mode of transport, is a trend which is expected to continue. Despite the current challenges presented by the COVID-19 crisis, the two rail companies DB and SBB firmly believe there is tremendous growth potential in rail services between Germany and Switzerland over the medium and long term. As a result, DB and SBB are planning a significant increase in services. Both rail companies today signed a memorandum of understanding on the proposals.
The planned increase in services will be made possible thanks to the opening of Stuttgart 21 and the completion of the Karlsruhe–Offenburg and Müllheim–Basel stages of improvements by 2026. The increase in services involves switching operation of all ICE services between Switzerland and Germany to ICE 4s, this being DB’s most modern train, and the use of SBB Giruno compositions in Germany.
The key features of the service increase planned from the 2026 timetable are:
– The number of direct services between Switzerland and Germany will rise from 26 at present to 35 connections a day.
– Two new direct services a day from Hamburg via Basel to Lugano will improve the services on the north-south axis via the Gotthard route. The use of the Giruno on this line means that further direct connections from Germany to Milan could be added in future.
– The new plan also involves running new direct services from Germany via Bern to Valais.
– The deployment of the ICE 4 on the Dortmund–Cologne–Basel line makes it possible to provide new direct services from North Rhine-Westphalia, Germany’s most populous federal state, to Switzerland.
– The half-hourly frequency in future on the Zurich to Chur route will allow additional direct connections from Germany to Chur to be provided.
– The journey time between Frankfurt and Zurich will be reduced by 20 minutes to 3 hours and 40 minutes.
In conjunction with the joint increase in services, SBB Giruno trains will also now be used on routes between Switzerland and Germany. SBB also plans to procure additional Giruno compositions from manufacturer Stadler Rail using existing options available. Vincent Ducrot, CEO of SBB, believes this increase in services is another major step which underlines SBB’s strong commitment to significantly improving international passenger services: “We want to make rail travel in Europe easier for our customers. Rail offers major advantages in terms of travel time and comfort and has gained further impetus from the climate debate. This is why we are focusing on the further development of international services. It is important to look at sustainable and efficient mobility at European level. Infrastructure projects, such as the Ceneri Base Tunnel and Stuttgart 21, are pioneering in this respect.” Richard Lutz, CEO of Deutsche Bahn, said: “2021 is the European Year of Rail. Projects such as the revival of the Trans Europ Express for cross-border services and the development of our cooperation with SBB demonstrate this. These are wonderful indications that rail travel is growing across the entire continent, and first and foremost, that people and economic activity in Europe are coming closer together.”
Der neue Fernverkehrszug der SBB “FV Dosto”, ein Doppelstockzug, fotografiert wahrend der Typentestfahrt in Interlaken, am Donnerstag, 11. Mai 2017. (KEYSTONE/Anthony Anex)……..
JetBlue (NASDAQ: JBLU) today announced it has reached a tentative agreement with the Transport Workers Union (TWU), regarding the process toward a contract for JetBlue’s inflight crewmembers.
The agreement is subject to a ratification process which includes final documentation, review, and consideration by JetBlue’s TWU leadership team before being distributed to inflight crewmembers for a final vote.
Ed Baklor, vice president inflight, JetBlue, said: “We are pleased to come to this tentative agreement and look forward to bringing the contract to a vote with our inflight crewmembers. Thank you to both negotiating committees for their efforts over the past two years to reach this agreement.”
Ian Deason, head of customer experience, said: “I want to thank our amazing inflight crewmembers for their commitment to safety and for continuing to always deliver the best experience in the skies during this especially challenging time for our industry.”
