The International Airfreight Capacity agreement with the Ministry of Transport will allow exporters and importers the ability to access key markets in a world where available air freight capacity is reduced due to the COVID-19 pandemic.
Air New Zealand General Manager Cargo Rick Nelson says cargo customers will be able to access capacity across Air New Zealand’s traditional network, with a handful of exceptions.
“The new agreement means Air New Zealand can publish scheduled cargo services into key markets which will allow freight forwarders, exporters and importers to plan and operate their logistics supply chains with certainty.
“We are working to offer connectivity to and from the United Kingdom and Europe, as well as Houston and Chicago via Los Angeles and San Francisco, Hong Kong and Narita gateways.
“This agreement will add significant value to New Zealand’s air cargo community, and we encourage the New Zealand forwarding, export and import communities to get behind these cargo options. Naturally, we hope the need to operate under an agreement of this nature will be a short-term business model and in time we’ll be able to revert to our traditional model as demand for passenger travel begins to pick up.”
Ports the airline will not operate cargo flights to under the agreement are London and Buenos Aires. Singapore is also not included in the initial phase.
JetBlue (NASDAQ: JBLU) today announced that starting May 4 all customers will be required to wear a face covering during travel. The policy comes after the airline began requiring all crewmembers to wear face coverings while working. JetBlue has modeled its policy on the Centers for Disease Control (CDC) guidelines that indicate all individuals should wear a face covering in public to help slow the spread of the coronavirus (COVID-19).
“Wearing a face covering isn’t about protecting yourself it’s about protecting those around you,” said Joanna Geraghty, president and chief operating officer, JetBlue. “This is the new flying etiquette. Onboard, cabin air is well circulated and cleaned through filters every few minutes but this is a shared space where we have to be considerate of others. We are also asking our customers to follow these CDC guidelines in the airport as well.”
This new policy will require customers to wear a face covering over their nose and mouth throughout their journey, including during check-in, boarding, while in flight and deplaning. Customers will be reminded of this requirement before their flight via email and at the airport by both terminal signage and announcements. Small children who are not able to maintain a face covering are exempt from this requirement.
CDC guidance defines a suitable face covering as an item of cloth that should fit snugly against the side of the face, be secured with ties or ear loops, include multiple layers of fabric and allow for unrestricted breathing. The CDC recommends surgical masks and N-95 respirators be reserved for healthcare workers and other medical first responders.
Maintaining distance onboard whenever possible
Beyond face covering requirements for crewmembers and customers, since late March, JetBlue has limited the number of seats available for sale on most flights, allowing the airline to provide additional space between individuals who are not traveling together. Before each flight, JetBlue reviews seat assignments to ensure as much personal space as possible. In addition, rows near crewmember jump seats have been blocked off to create buffer zones for added crewmember and customer safety.
Safety enhancements throughout the journey
All of JetBlue’s aircraft are equipped with hospital grade high-efficiency air particulate (HEPA) filters. All recirculated air is passed through these HEPA filters before re-entering the cabin and being mixed with fresh air. All of the air in the cabin is, on average, completely changed every three minutes. HEPA filters are capable of removing 99.97 percent of particles, bacteria and viruses. To learn about how air circulates onboard JetBlue’s fleet, view this JetBlue video at https://youtu.be/Q2_C2iN-tEs.
Since the coronavirus began spreading in the United States, JetBlue has increased the rigor of its aircraft cleanings at night and between flights, using disinfectant approved to kill the coronavirus. Cleanings have been focused on the places customers and crewmembers touch the most, including seat covers, seatbelts, tray tables and armrests. Traditional food and beverage service have been adjusted onboard to limit touchpoints between crewmembers and customers. To learn about all the additional measures JetBlue has implemented visit http://blog.jetblue.com/coronavirus.
Australians and Kiwis have chosen Air New Zealand as their most trusted, respected and admired company – and the airline has a message of thanks as it faces a tough road ahead.
Quiet skies haven’t stopped Aussies sharing their love for the Kiwi airline, making it four consecutive years Air New Zealand has topped The RepTrak Company’s annual reputation ranking in Australia. Air New Zealand has also claimed the top position at home, pipping Toyota New Zealand, The Warehouse, and KiwiBank in RepTrak’s New Zealand ranking.
In ranking first in both Australia and New Zealand, Air New Zealand has continued to outperform on reputation pillars such as innovation, citizenship, products and performance.
Air New Zealand Chief Marketing and Customer Officer Mike Tod says the news is heartening as the airline faces the most disruptive period in its 80-year history.
“This award belongs to our hardworking people, who despite deep uncertainty about the future, continue to represent our nation and airline with pride, serving our customers with outstanding dedication.
“Our Aussie connection began 80 years ago, when we took our first flight to Sydney’s Rose Bay on 30 April 1940. Australia is Air New Zealand’s largest international market and before COVID-19, at peak times we operated around 375 flights a week across the Tasman.
“While we’re down to a handful of international services and a fraction of our domestic flying for essential travel and cargo, we’ve been overwhelmed by messages of support and care from customers. Thank you Australia, and New Zealand, for continuing to put your faith in us. Our Air New Zealand family can’t wait to welcome you on board again, when we can.”
Chief Executive Officer for The RepTrak Company Kylie Wright-Ford says the high esteem in which Australians and New Zealanders hold Air New Zealand will stand the airline in good stead as it continues to navigate the ongoing COVID-19 disruption.
“In times of crisis and uncertainty, having a consistently excellent reputation – as Air New Zealand does – is invaluable. Based on more than 20 years of providing data and actionable insights to companies globally we know people will continue to support companies that have stronger reputations.”
Further commentary on the RepTrak Australia and New Zealand rankings is available here.
LONDON (Reuters) – Airbus <AIR.PA> will furlough around 3,200 staff at its Broughton factory in Wales, the European planemaker said on Monday after it warned staff that the coronavirus crisis had put its survival at stake.
Airbus has given its starkest assessment yet of damage from the crisis, telling the company’s 135,000 employees to brace for potentially deeper job cuts as it grapples with the impact of the COVID-19 pandemic on the aerospace sector.
Earlier this month, the group said it would furlough some 3,000 French workers by tapping a government-backed scheme for four weeks.
“Airbus confirms it has agreed with its social partners to apply the government’s Job Retention Scheme for approximately 3,200 production and production-support employees at its commercial aircraft site in Broughton,” it said in a statement.
Britain’s job retention scheme allows employers to furlough staff and claim cash grants up to 80% of wages, capped at 2,500 pounds per worker.
Airbus will top up gross salaries to bring pay up to 85-90% of pay, in accordance with an agreement signed with trade union representatives.
The deal affects the majority of the production and production support teams in Broughton, the north Wales factory which assembles wings.
Furlough periods will be staggered, with all starting in the next three weeks and lasting for at least three weeks.
The move does not affect Airbus’ 3,000 staff in Filton, western England, where wings are designed and supported.
(Reporting by Alistair Smout; editing by Stephen Addison)
FILE PHOTO: Airbus CEO Guillaume Faury poses before Airbus’s annual press conference on full-year results
By Tim Hepher
PARIS (Reuters) – European planemaker Airbus issued a bleak assessment of the impact of the coronavirus crisis, telling the company’s 135,000 employees to brace for potentially deeper job cuts and warning its survival is at stake without immediate action.
In a letter to staff, Chief Executive Guillaume Faury said Airbus was “bleeding cash at an unprecedented speed” and that a recent drop of a third or more in production rates did not reflect the worst-case scenario and would be kept under review.
Airbus said it did not comment on internal communications.
The letter was sent to employees late on Friday, days before the company is due to give first-quarter results overshadowed by a pandemic that has left airlines struggling to survive and virtually halted jet deliveries since mid-March.
Airbus has begun implementing government-assisted furlough schemes starting with 3,000 workers in France, “but we may now need to plan for more far-reaching measures,” Faury said.
“The survival of Airbus is in question if we don’t act now,” he added.
Industry sources have said a new restructuring plan similar to its 2007 Power8 which saw 10,000 job cuts could be launched in the summer, but Faury indicated the company was already exploring “all options” while waiting for clarity on demand.
People familiar with the matter say Airbus is also in active discussions with European governments about tapping schemes to assist struggling industries, including state-guaranteed loans.
It has already expanded commercial credit lines with banks, buying what Faury described as “time to adapt and resize”.
Boeing (NYSE: BA) announced today that it has terminated its Master Transaction Agreement (MTA) with Embraer, under which the two companies sought to establish a new level of strategic partnership. The parties had planned to create a joint venture comprising Embraer’s commercial aviation business and a second joint venture to develop new markets for the C-390 Millennium medium airlift and air mobility aircraft.
Under the MTA, April 24, 2020, was the initial termination date, subject to extension by either party if certain conditions were met. Boeing exercised its rights to terminate after Embraer did not satisfy the necessary conditions.
“Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn’t happen,” said Marc Allen, president of Embraer Partnership & Group Operations. “It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues.”
The planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.
Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.
OSLO (Reuters) – Norwegian Air <NAS.OL> could run out of cash by mid-May unless its proposed financial rescue plan is approved by creditors and shareholders, the budget carrier warned on Monday.
If approved by bondholders, leasing companies and shareholders, the plan may help Norwegian survive the coronavirus outbreak, which has grounded 95% of its fleet, leaving just 7 aircraft in operation.
But the planned debt-to-equity swap will hand majority ownership of 53.1% to the company’s lessors, while bondholders would own 41.7%, leaving current shareholders with just 5.2%, it said.
The move would allow Norwegian to tap government guarantees of 2.7 billion crowns ($255 million), which are dependent on the company reducing its ratio of debt to equity, and which would come on top of 300 million crowns it has already received.
It is “critical to get access to the state aid package by mid-May before the company runs out of cash,” Norwegian said in a presentation to investors.
Rapid growth has made Norwegian Europe’s third-largest low-cost airline and the biggest foreign carrier serving New York and other major U.S. cities, but with the expansion came debts and liabilities of close to $8 billion by the end of 2019.
Last week, the company reported that four Swedish and Danish subsidiaries had filed for bankruptcy and that it had ended staffing contracts in Europe and the United States, putting some 4,700 jobs at risk.
Norwegian’s shares opened 8% lower on Monday and are down 86% year-to-date.
The company aims to gradually emerge from the COVID-19 crisis with both a short-haul and long-haul network in place, and is targeting a return to normal operations in 2022, it said.
The plan requires backing from bondholders in each of four separate votes planned for April 30, from shareholders in an extraordinary general meeting scheduled for May 4, and from leasing firms.
It maintained plans to raise up to 400 million crowns in cash from owners.
(Editing by Jan Harvey)
FILE PHOTO: A Norwegian Air plane is refuelled at Oslo Gardermoen airport
HONG KONG, April 19 (Reuters) – United Airlines will sell and lease back 22 planes to Bank of China (BOC) Aviation, a statement from the aircraft investor released to the Hong Kong Stock Exchange said on Sunday.
The deal involves six Boeing 787-9 aircraft and 16 Boeing 737-9 MAX aircraft from United Airlines, the statement said.
The Singapore-based BOC Aviation did not reveal how much the purchase was worth but said the planes would be leased back to United on long-term agreements.
United said on Wednesday it had reduced its flight schedule in May by 90% and expects similar cuts for June as a result of the coronavirus pandemic.
The U.S. airline also said it flew less than 200,000 people in the first two weeks of April, a 97% drop from the more than 6 million people it flew during the same time in 2019.
BOC Aviation, which focuses on aircraft leasing, has a fleet of 567 planes owned, managed or on order as at the end of March, the statement said
The transaction was finalised on Friday and the deal is expected to close later this year, the statement said.
(Reporting by Scott Murdoch. Editing by Jane Merriman)
SYDNEY (Reuters) – China Development Bank (CDB) Financial Leasing Co said on Monday it had agreed with Boeing Co <BA.N> to cancel the purchase of 29 undelivered 737 MAX jets, adding to a string of recent cancellations of the grounded airplane.
The model has been grounded globally for more than a year following deadly crashes in Indonesia and Ethiopia.
“In light of evolving aviation market dynamics, we’ve been working together with Boeing over many months to re-calibrate our MAX orderbook to be in line with our long-term view of the market and related opportunities,” Xuedong Wang, chairman of CDB Financial unit CDB Aviation, said in a statement.
The lessor said it retained an order for another 70 of the planes that also have yet to be delivered.
Boeing recorded a total of 150 MAX cancellations in March, including 75 from Irish leasing company Avolon. Boeing remains in talks with regulators seeking approval to return the plane to service, but its customers have also seen a sharp fall-off in demand due to the coronavirus pandemic.
Boeing said in a statement it continued to partner with leasing company customers to help them balance their portfolios in a challenging market.
“As we work to return the 737 MAX to service, our focus remains on addressing our customers’ fleet needs while optimising the delivery of the more than 4,000 airplanes in our 737 backlog,” it said.
“As market conditions normalise, Boeing anticipates that lessors who have restructured or reduced their orderbooks will continue to add MAX aircraft to their portfolios through sale leaseback agreements with airlines,” the planemaker said. “Longer term we expect these lessors will again place orders for direct MAX purchases.”
CDB Financial Leasing said that all 737 MAX 10 jets still on order will be switched to the smaller 737 MAX 8 model, and 20 deliveries will be deferred to dates in 2024, 2025 and 2026.
(Reporting by Jamie Freed; additional reporting by David Shepardson in Washington Editing by Tom Hogue and Muralikumar Anantharaman)
A Boeing 737 Max aircraft is seen parked in a storage area at the company’s production facility in Renton
Boeing [NYSE: BA] completed its first COVID-19 transport mission, using a 737-700 aircraft from its corporate fleet to bring personal protective equipment (PPE) from China to the United States. Working in partnership with FIRST® Robotics Founder Dean Kamen, the company transported 540,000 medical-grade face masks that will be delivered to healthcare professionals battling COVID-19 in New Hampshire.
Kamen, who has a longstanding relationship with Boeing through FIRST Robotics, is also a founder of DEKA Research and Development Corporation. He worked with DEKA to secure the face masks from manufacturers in China and turned to Boeing to facilitate their transport. DEKA is the importer of record for the delivery and provided the masks to New Hampshire for distribution to healthcare professionals in the state.
“Another life-saving delivery of PPE has arrived in New Hampshire,” said Governor Chris Sununu. “Thanks to Dean Kamen for facilitating this deal, and to Boeing for donating the cost of this mission transport. The state will deliver these masks to the greatest areas of need across New Hampshire so those on the frontline have the necessary resources to fight COVID-19.”
“Boeing has been a long-time partner of FIRST Robotics and I’m proud that I can again partner with the Boeing team to meet the needs of our frontline healthcare professionals fighting COVID-19,” said Kamen. “Now more than ever, help from companies like Boeing is critical so we can continue to make sure protective equipment gets to the people who need it most.”
Boeing continues to support local communities and the heroic healthcare professionals working tirelessly to stop the spread of COVID-19. Additional airlift transport missions with the Boeing Dreamlifter and ecoDemonstrator are planned in the future. Boeing is coordinating closely with U.S. government officials on how to best assist areas with the greatest need.
“I want to personally thank Governor Sununu, the entire New Hampshire congressional delegation and Dean Kamen for their leadership in helping secure and distribute this much-needed personal protective equipment for our frontline healthcare workers and first responders here in New Hampshire,” said Dave Calhoun, Boeing president and CEO. “We are honored to have conducted today’s airlift mission and we look forward to providing continued support in the fight against this pandemic.”
A Boeing-owned aircraft loads 540,000 medical-grade masks in China destined to New Hampshire. (Boeing photo)
