Category: Canada Canadian News (Page 7 of 9)

Layoffs in Corporate Australia & New Zealand as Crisis Deepens

April 16, 2020 / WIL BALDWIN

(Reuters) – The coronavirus outbreak has virtually shut down corporate Australia and New Zealand, forcing companies to throw out their strategic plans and resulting in thousands of layoffs or staff suspensions.

Listed companies in both the countries have already laid off or began considering laying off more than 100,000 people, temporarily or permanently, highlighting the toll on livelihoods as virtual shutdowns take hold.

Ultimately, economists forecast the crisis will more than double unemployment to more than 11%, the highest in three decades.

AIRLINES

* Qantas Airways to place 20,000 workers on leave until at least the end of May.

* Virgin Australia to stand down 8,000 employees until the end of May.

* Air New Zealand to lay off nearly a third of its employees, about 3,500, in the coming months, and said that was a “conservative” assumption.

CASINOS

* Star Entertainment Group says 90% of its workforce, or 9,000 people, will be placed on leave due to mandated casino closures.

* Crown Resorts Ltd stood down about 95% or more than 11,500 of its employees on a full or temporary basis as gaming and other non-essential services at its resorts in Melbourne and Perth were suspended.

* SkyCity Entertainment Group has laid off or furloughed at least 1,100 of its staff across Australia and New Zealand.

RETAIL

* Department store operator Myer Holdings will temporarily lay off 10,000 of its staff without pay.

* Kathmandu Holdings Ltd, the outdoor apparel retailer that owns Rip Curl, said most of its global stores were closed and almost all its staff in Australia will be stood down for four weeks without pay. It has around 4,000 employees globally.

* Home ware retailer Smiths City Group Ltd stands down almost all of its 465 employees on 80% of their salary.

* Retail Food Group will stand down or reduce the working hours of the majority of its 500 employees.

* Premier Investments, owner of Smiggle, Just Jeans and chains, is standing down 9,000 employees, most without pay

* Jeweller Michael Hill International is putting staff on leave in Australia, New Zealand and Canada. The company employs about 2,500.

* Fashion retailer Mosaic Brands is standing down 6,800 due to store closures.

* Footwear retailer Accent Group stands down all its retail employees and most support staff for four weeks without pay. The company reportedly employs 5,700.

HOSPITALITY

* Pub and hotel operator Redcape Hotel Group will cut most permanent staff. It employs 800.

* ALH Group, the pubs and hotels group majority-owned by Woolworths, will stand down about 8,000 staff.

TRAVEL AGENTS

* Flight Centre is cutting or putting on leave a third of its 20,000 staff.

* Helloworld Travel lays off 275 people and temporarily stands two-thirds of its 1,800 workforce until the end of May.

HEALTH AND EXERCISE

* Viva Leisure lays off more than 90% of its 2,200 workforce.

* Dental group Abano Healthcare will stand down majority of its 2,300 employees at its operations in Australia and New Zealand.

HIRING:

On the other hand, some companies are hiring under the new circumstances.

* Australia’s biggest supermarket chain Woolworths to hire 20,000 in the next month. Some of the new hires will be those re-deployed from its the pubs and hotels business, ALH Group. Woolworths also plans to offer short-term roles to 5,000 Qantas employees put on leave.

* Coles has added 7,000 people to its ranks, and said it plans to hire another 5,000 to meet increasing demand at its supermarkets and liquor stores.

* Australia’s biggest telecom company Telstra will freeze a 6,000-employee cull and hire 1,000 due to growing volumes at call centres.

* BHP Group, the world’s biggest miner, says it will hire 1,500 temporary workers, some to be offered permanent roles after six months.

(Reporting by Nikhil Kurian Nainan and Anushka Trivedi in Bengaluru; Editing by Byron Kaye, Shounak Dasgupta and Sherry Jacob-Phillips)

Air Canada Provides Update on Ongoing COVID-19 Response

March 19, 2020 / WIL BALDWIN

Air Canada said today that it will gradually suspend the majority of its international and U.S. transborder flights by March 31, 2020 in response to decisions by national governments, including Canada and the United States, to close borders and restrict commercial aviation as a result of the COVID-19 crisis. Subject to further government restrictions, the airline intends to continue to serve a small number of international and U.S. trans-border destinations from select Canadian cities after April 1, 2020. The airline also intends to continue serving all provinces and territories of Canada after that date, albeit with a significantly reduced network.

All schedule changes can be found at www.aircanada.com.

International and U.S. transborder services

In order to facilitate the continued repatriation of citizens to their home countries, including Canadians back to Canada, and to support the essential movement of needed goods and cargo during the crisis, Air Canada intends to continue to operate a limited number of international “air bridges” between one or more of its Canadian hubs and the cities of London, Paris, Frankfurt, Delhi, Tokyo and Hong Kong from April 1 until at least April 30. This will reduce its international network from 101 airports to six.

As to U.S. transborder services, given the decision by the U.S. and Canadian governments today, from April 1, Air Canada will reduce its transborder network from 53 airports to 13, subject to further reductions based on demand or government edicts. The cities with continued service will be: New York (LGA and EWR), Boston, Washington, D.C. (IAD and DCA), Chicago, Houston, Seattle, San Francisco, Los Angeles, Denver, Orlando and Fort Lauderdale.

Domestic Canada network

Air Canada intends to continue to serve all provinces and territories of Canada, reducing its domestic network from 62 airports to 40 through a reduced network during the period April 1 to 30, subject to further reductions based on demand or government edict.

For information on Air Canada’s schedule beginning April 1, 2020 please see www.aircanada.com.

“The restrictions on travel imposed by governments worldwide, while understandable, are nonetheless having a cataclysmic effect upon the global airline industry. Our immediate focus is on ensuring the safety and well-being of our employees, customers and communities. At the same time, we are exploring with the Government of Canada possibilities to maintain essential operations to enable as many Canadians as possible to return to Canada, and to support other vital transport needs, including the shipment of goods and cargo during the crisis as required in any state of emergency. We are working around the clock to deal with the impact for our customers and our business of the various travel restrictions that are being made by governments at unprecedented speed without advance warning. We will also look at helping Canadians to return home by operating a limited number of charters from international destinations and exploring with the Government of Canada avenues in this regard. We will provide updates as details are finalized,” said Calin Rovinescu, President and Chief Executive of Air Canada.

For Affected Customers

The airline will gradually suspend some of its scheduled flights between now and March 31 as demand for Canadians to return to Canada from a number of destinations reduces. Please check Air Canada’s website for details given the rapidly evolving situation.

Affected customers, including those with Air Canada Vacations packages, whose flights are cancelled will receive a full credit valid for 24 months. There is no requirement to contact Air Canada as customers will be contacted directly.

The airline has also put in place temporary, one-way fares to Canada to enable customers abroad to return home. Customers seeking to contact Air Canada are advised that contact centre wait times are elevated, so the airline has put in place a number of self-service tools to enable customers to manage their travel online. For more information please consult our COVID-19 webpage at www.aircanada.com.

American Airlines Announces Additional Schedule Changes in Response to COVID-19

March 15, 2020 / WIL BALDWIN

American Airlines Group Inc. (NASDAQ: AAL) will implement a phased suspension of additional long-haul international flights from the U.S. starting on March 16. This suspension will last through May 6. This change is in response to decreased demand and changes to U.S. government travel restrictions due to coronavirus (COVID-19). The airline will:

Reduce international capacity by 75% year over year — from March 16 to May 6
Continue to operate one flight daily from Dallas-Fort Worth (DFW) to London (LHR), one flight daily from Miami (MIA) to LHR and three flights per week from DFW to Tokyo (NRT)
Continue short-haul international flying, which includes flights to Canada, Mexico, Caribbean, Central America and certain markets in the northern part of South America, as scheduled

In addition to the international changes, the airline anticipates its domestic capacity in April will be reduced by 20% compared to last year and May’s domestic capacity will be reduced by 30% on a year over year basis.

International Route Changes

By region, the new schedule changes include the following:

Asia, effective March 16

American will suspend all remaining flights to Asia, except for three flights per week from DFW to NRT

Australia and New Zealand, effective March 16

Suspending service from Los Angeles (LAX) to Auckland (AKL) effective March 16, which was slated to end seasonal flying on March 28
Suspending service from LAX to Sydney (SYD) effective March 16

Europe, phased suspension

American will continue to operate one flight daily from DFW to LHR and MIA to LHR
Suspending flights from New York (JFK), Boston (BOS), Chicago (ORD), and LAX to LHR gradually over the next seven days to reaccommodate passengers and crew
LHR, Dublin (DUB) and Manchester (MAN) flights from Charlotte (CLT), Philadelphia (PHL) and Phoenix (PHX) will be suspended faster, as these airports are not approved gateways by the U.S. Department of Homeland Security. Final eastbound flights from CLT, PHL and PHX will be on March 15; final westbound flights returning from LHR, DUB and MAN will depart March 16
Continued suspensions in other parts of Europe, as previously announced, including the delayed start of some seasonal routes as well as flights to and from Amsterdam (AMS), Barcelona (BCN), Frankfurt (FRA), Madrid (MAD) and Munich (MUC) Paris (CDG) and Zurich (ZRH) through early May, or later, based on guidance from the U.S. government and customer demand

South America, effective March 16

Suspending service from JFK and MIA to Rio de Janeiro (GIG) and Georgetown, Guyana (GEO)
Suspending service from DFW, JFK and MIA to São Paulo (GRU)
Suspending service from DFW and MIA to:
- Chile: Santiago (SCL)
- Colombia: Bogota (BOG)
- Ecuador: Guayaquil (GYE) and Quito (UIO)
- Peru: Lima (LIM)
Suspending service from MIA to:
- Brazil: Brasilia (BSB) and Manaus (MAO)
- Colombia: Barranquilla (BAQ), Cartagena (CTG), Cali (CLO), Medellin (MDE) and Pereira (PEI)

These capacity reductions assume no slot waivers are in place other than those previously granted. At airports where demand exceeds airfield and/or terminal capacity, access is governed by slots that grant airlines permission to take off and land at specific times. Given the decrease in demand related to COVID-19, American has requested temporary relief from this usage requirement — otherwise known as requesting a slot waiver — to better align capacity with demand without the risk of losing valuable takeoff and landing slots for the future. American will continue to review its network and make adjustments as needed if waivers are granted.

High-Speed Cabin Connectivity for New Bombardier Learjet Aircraft Now Offered on In-service Fleet

March 4, 2020 / WIL BALDWIN

Gogo AVANCE L5 provides the fastest and most reliable 4G air-to-ground
high-speed internet coverage over North America for business aircraft today
Retrofit available for Learjet 40, Learjet 45, Learjet 70 and Learjet 75 aircraft throughout Bombardier’s growing service network, which has unparalleled OEM expertise to enhance the ownership experience for customers
This high-speed connectivity is already available on new Learjet aircraft, and will be an option on the new Learjet 75 Liberty business jet

Bombardier Aviation is bringing faster connectivity to its in-service Learjet fleet as part of a continuing commitment to this legendary platform. Gogo Business Aviation’s next-generation, 4G air-to-ground (ATG) internet system, Gogo AVANCE L5, has been an available option on new Learjet aircraft since last year.

Bombardier is now offering customers the high-performance 4G in-cabin Wi-Fi system as a retrofit for in-service Learjet 40, Learjet 45, Learjet 70 and Learjet 75 aircraft. Customers can have the system installed at all Bombardier Service Centres and Authorized Service Facilities throughout the United States.

“Learjet aircraft are renowned productivity tools, and this enhancement ensures that our customers have the connectivity they need to maximize their time in the air,” said Michael Anckner, Vice President, Worldwide Sales, Learjet Aircraft and Corporate Fleets, Bombardier Business Aircraft. “With various upgrades available for our large fleet of in-service aircraft and the recent unveiling of our value-added Learjet 75 Liberty aircraft, there’s never been a better time to own a Learjet.”

The new and significantly faster 4G service uses Gogo AVANCE L5, which is lightweight and compact, accesses the Gogo Biz 4G ground network of more than 250 towers and delivers seamless connectivity over the continental U.S. and large parts of Canada and Alaska. Designed specifically for business aircraft, the system offers audio and video streaming as well as faster web surfing for a vastly improved user experience over previous-generation technology.

The iconic Learjet brand is synonymous with excellence in aviation, with more than 2,000 Learjet aircraft in service around the world. This fleet is a testament to the longevity and reliability of this platform, while the upcoming Learjet 75 Liberty signals a strong future for the world’s best light jet.

Bombardier is growing its worldwide support network, including a new service centre at Miami-Opa Locka Executive Airport and the recent addition of two U.S. line maintenance stations in Teterboro and Van Nuys. In addition to providing this 4G connectivity upgrade to the Learjet fleet, Bombardier is also offering the latest update to the popular Garmin G5000 avionics suite aboard Learjet aircraft, which was recently certified by the U.S. Federal Aviation Administration and brings many workload-reducing improvements to the cockpit.

The Learjet 75 Liberty aircraft is on track to enter service in mid-2020. Its spacious cabin features a
six-seat configuration that gives light jet passengers unprecedented freedom to stretch out. A standard pocket door delivers a quiet, productive flight coupled with the comfort of Bombardier’s signature smooth ride.

The Learjet 75 Liberty aircraft has a range of 2,080 nautical miles, able to connect Las Vegas to New York, Seattle to Washington, D.C., and Mexico City to San Francisco, nonstop.* This aircraft has the same operating costs as its competitors in the light jet category while offering the most spacious cabin, the fastest speed, the longest range and the smoothest ride. It is also a step up from other light jets in terms of safety standards, certified to the FAA’s more stringent Part 25 regulations, applicable to commercial airliners, unlike other light jets certified to Part 23 regulations.

Canadian National Starts Calling Back Employees Laid Off During Rail Blockade

March 1, 2020 / WIL BALDWIN

MONTREAL, Feb 28 (Reuters) – Canadian National Railway Co has started calling back many of the 450 workers it laid off earlier this month in eastern Canada, when blockades crippled operations on strategic rail lines, according to a company email sent to customers on Friday.

Earlier this week, police made 10 arrests and cleared a blockade in eastern Canada that had been stopping freight and passenger traffic for almost three weeks on one of Canada’s busiest lines.

The blockades were held in solidarity with the Wet’suwet’en people in the Pacific province of British Columbia, who are seeking to stop TC Energy Corp from building a gas pipeline over their land.

“In the absence of illegal blockades on our network over the last 24 hours, and while we are keeping a close watch for any further disruptions, we have started calling back many of the temporarily laid off employees based in Eastern Canada,” CN chief executive Jean-Jacques Ruest said in the email seen by Reuters.

The email did not specify how many of the 450 workers were being called back.

After 21 days of disruptions, “there is a significant backlog of trains parked on our tracks and in our yards that will be processed,” the email said.

“The complete network recovery process will take several weeks.”

Montreal-based CN said the company was on its way to recovering in Western Canada, and said products like export grain, imported containerized goods, coal, potash and other commodities are moving to market.

Canada relies on CN and rival Canadian Pacific Railway to move crops, oil, potash, coal and manufactured goods to ports and the United States. About half of Canada’s exports move by rail, according to industry data.

(Reporting By Allison Lampert; editing by Grant McCool)

Acquisition of Bombardier Transportation: Accelerating Alstom’s Strategic Roadmap

February 17, 2020 / WIL BALDWIN

A step-change acquisition to address the ever-increasing demand for sustainable mobility
Excellent strategic rationale bringing to Alstom:
– Strong commercial and product complementarities
– Strengthened product lines and strategic industrial capacity
– Leading portfolio offering and R&D capabilities
Acquisition price from €5.8bn to €6.2bn
CDPQ to become the largest shareholder of Alstom with c.18% of the capital

Alstom announces today that it has signed a Memorandum of Understanding with Bombardier Inc. and Caisse de dépôt et placement du Québec (“CDPQ”) in view of the acquisition of Bombardier Transportation. Post-transaction, Alstom will have a backlog of around €75bn and revenues around €15.5bn. The price for the acquisition of 100% of Bombardier Transportation shares will be €5.8bn to €6.2bn which will be paid via a mix of cash and new Alstom shares. CDPQ will reinvest c.€2bn corresponding to 100% of cash proceeds to be received from the sale of its stake in Bombardier Transportation and further invest €0.7bn in Alstom, outlining its strong belief in the strategic rationale and value creation potential of the combination.

“I’m very proud to announce the acquisition of Bombardier Transportation, which is a unique opportunity to strengthen our global position on the booming mobility market. This acquisition will improve our global reach and our ability to respond to the ever-increasing need for sustainable mobility. Bombardier Transportation will bring to Alstom complementary geographical presence and industrial footprint in growing markets, as well as additional technological platforms. It will significantly increase our innovation capabilities to lead smart and green innovation. We will be thrilled to welcome all the talent and energy of Bombardier Transportation employees. We are deeply committed to step up the turnaround of Bombardier Transportation activities and deliver significant value to all stakeholders, particularly our customers. We will also further develop Bombardier Transportation’s historical presence in Québec, drawing on Québec’s well-established strengths in innovation and sustainable mobility. We are pleased to welcome CDPQ as a new long-term shareholder. CDPQ is fully supportive of the transaction and Alstom’s strategy.” said Henri Poupart-Lafarge, Chairman and CEO of Alstom.

A step-change acquisition

Alstom and Bombardier operate in a very positive market environment with passenger traffic expected to grow between 3% to 5% annually over the 2015-2025 period and global rail OEM market expected to achieve a +3.0% CAGR between 2021-2023. The dynamic is driven by urbanisation trend and a strong push for decarbonation of mobility. In Europe, the European Commission has set very ambitious targets in terms of CO2 reduction and several countries have announced large investments in rail.

Alstom is a preeminent rail equipment player with an industry-record backlog of €40bn and €8.1bn of annual sales as of 31-Mar-2019. Over the period 2016-2019, Alstom delivered strong sales development with an average annual growth of 5.5% outperforming the market, and significantly improved profitability (up to 7.5% adjusted EBIT margin).

Bombardier Transportation is a reference player in global rail transportation with a €32bn backlog and €7.4bn sales as of December 2019. With a track record of market leadership and a strong expertise, Bombardier Transportation offers a broad product portfolio across all market segments and has a well-balanced industrial footprint between best-cost and high-tech countries.

Click the link for the full press release! https://www.alstom.com/press-releases-news/2020/2/acquisition-bombardier-transportation-accelerating-alstoms-strategic

Airbus and Government of Québec Become Sole Owners of the A220 Program

February 17, 2020 / WIL BALDWIN

Bombardier transfers its remaining interest in Airbus Canada Limited Partnership (Airbus Canada) to Airbus SE and the Government of Québec
Airbus now holds 75 percent of Airbus Canada with the Government of Québec increasing its holding to 25 percent for no cash consideration
Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Québec
Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada
Over 3,300 Airbus jobs secured in Québec

Amsterdam / Montreal – Airbus SE (EADSY), the Government of Québec and Bombardier Inc. (BBD-B.TO) have agreed upon a new ownership structure for the A220 program, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately.

This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 – three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.

This new agreement underlines the commitment of Airbus and the Government of Québec to the A220 programme during this phase of continuous ramp-up and increasing customer demand. Since Airbus took majority ownership of the A220 programme on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.

“This agreement with Bombardier and the Government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore it extends our trustful partnership with the Government of Québec. This is good news for our customers and employees as well as for the Québec and Canadian aerospace industry,” said Airbus Chief Executive Officer Guillaume Faury. “I would like to sincerely thank Bombardier for the strong collaboration during our partnership. We are committed to this fantastic aircraft programme and we are aligned with the Government of Québec in our ambition to bring long-term visibility to the Québec and Canadian aerospace industry.”

“I am proud that our government was able to reach this agreement. We have succeeded in protecting paying jobs and the exceptional expertise developed in Québec, despite the major challenges we faced in this regard when we took office. We have consolidated the government’s position in the partnership, while respecting our commitment not to reinvest in the program. By opting to strengthen its presence here, Airbus has chosen to focus on our talents and our creativity. The decision of an industrial giant like Airbus to invest more in Québec will help attract other world-class prime contractors,” the Premier of Québec, François Legault, stated.

“This agreement is excellent news for Québec and its aerospace industry. The A220 partnership is now well established and will continue to grow in Québec. The agreement will allow Bombardier to improve its financial situation and Airbus to increase its presence and footprint in Québec. It’s a win–win situation for both the private partners and the industry,” pointed out Pierre Fitzgibbon, Minister of the Economy and Innovation.

With this transaction, Bombardier will receive a consideration of $591M from Airbus, net of adjustments, of which $531M was received at closing and $60M to be paid over the 2020-21 period. The agreement also provides for the cancellation of Bombardier warrants owned by Airbus, as well as releasing Bombardier of its future funding capital requirement to Airbus Canada.

“This transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aerospace,” said Alain Bellemare, President and CEO Bombardier, Inc. “We are incredibly proud of the many achievements and tremendous impact Bombardier had on the commercial aviation industry. We are equally proud of the responsible way in which we have exited commercial aerospace, preserving jobs and reinforcing the aerospace cluster in Québec and Canada. We are confident that the A220 program will enjoy a long and successful run under Airbus’ and the Government of Québec’s stewardship.”

The single aisle market is a key growth driver, representing 70 percent of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the A220 is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats).

As part of the agreement, Airbus has acquired the Airbus A220 and A330 work package production capability from Bombardier in Saint-Laurent, Québec. These production activities will be operated in the Saint Laurent site by Stelia Aéronautique Saint Laurent Inc., a newly created subsidiary of Stelia Aerospace, which is a 100 percent Airbus subsidiary.

Stelia Aéronautique Saint-Laurent will continue the production of the A220 cockpit and aft fuselage production, as well as A330 workpackages, for a transition period of approximately three years at the Saint-Laurent facility. A220 workpackages will then be transferred to the Stelia Aerospace site in Mirabel to optimize the logistical flow to the A220 Final Assembly Line also located in Mirabel. Airbus plans to offer all current Bombardier employees working on the A220 and A330 work packages at Saint-Laurent opportunities around the A220 programme’s ramp-up, ensuring know-how retention as well as business continuity and growth in Québec.

At the end of January 2020, 107 A220 aircraft were flying with seven customers on four continents. In 2019 alone, Airbus delivered 48 A220s, with the further ramp-up to be continued.

Alstom Nears Deal to Buy Bombardier’s Train Unit

February 16, 2020 / WIL BALDWIN

(Reuters) – France’s Alstom SA (ALO.PA) is close to clinching a deal to buy Bombardier Inc’s (BBD-B.TO) train business which will give the unit an enterprise value of $7 billion, according to a source familiar with the matter.

An announcement could come as soon as Monday, the source said, adding a deal has yet to be signed.

The Wall Street Journal, which first reported the news, said Alstom is expected to buy the business using mostly cash and some stock.

Quebec pension giant Caisse de dépôt et placement, which owns a 32.5% stake in Bombardier’s train unit, has agreed to sell its stake to Alstom and buy a minority stake in the combined train company, the WSJ report said.

Bombardier declined to comment on the report and Alstom did not immediately respond to a request for comment.

The Canadian plane-and-train-maker has been struggling to contain higher rail costs generated by a few problematic contracts in its nearly $36 billion order backlog.

The deal would help Alstom compete more effectively against Chinese rail giant CRRC Corp Ltd (1766.HK), after the French maker of TGV bullet trains was blocked last year by European regulators from merging with Germany’s Siemens (SIE.DE).

Reporting by Rama Venkat in Bengaluru and Allison Lampert in Montreal; Editing by Andrew Heavens

Competition Heats Up In The Turboprop Market

February 14, 2020 / WIL BALDWIN

SINGAPORE (Reuters) – Competition is cranking up in the world of turboprops.

For years turboprops were an ignored corner of the aircraft industry, accounting for about 120 aircraft a year compared with the more than 1,000 jets made by giants Airbus and Boeing.

But growing rivalries in the turboprop business cut through a Singapore Airshow depleted by coronavirus this week.

While intercontinental jet travel is vulnerable to trade wars and disruptions such as epidemics, regional development in archipelago nations like Indonesia is favouring the turboprop.

The market has been dominated for years by Europe’s ATR, jointly owned by Airbus and Italy’s Leonardo, which enjoys a relatively undisturbed lion’s share of the market with a small slice also held by the Canadian-owned De Havilland Dash 8.

But the commercial arm of Brazil’s Embraer is sharpening a pitch to return to the market and Chief Executive John Slattery told Reuters he expected a decision by the end of the year.

“We should be positioned in the mid-to-late fourth quarter to bring a business case with a recommendation to our board,” he said in an interview.

In a sign that the development is accelerating, Slattery said he had held talks with three potential engine suppliers – Rolls-Royce, General Electric and Pratt & Whitney Canada, part of the engine unit of United Technologies.

“We are fully engaged with engine manufacturers now and meeting here at the air show…We are excited by where we are.”

Until now, planemakers have found it difficult to justify the estimated $2-4 billion investment needed to develop a new turboprop, despite its efficiency on relatively short flights.

The market has been stagnant at about 120 deliveries a year and demand for the planes is dependent on volatile oil prices, with turboprops displacing small jets when prices are high.

The thrumming noise of the propellor-driven turboprop also puts some passengers off, travel experts say, even though many in the industry say that reputation is already out of date.

Slattery said quiet new engine technology and advances in passenger comfort would stimulate demand.

“We believe the market opportunity going forward is significantly different to what past decades have shown.”

COMPETITION BOOST

China has already entered the fray with its planned MA700.

At ATR’s bright-red stand inside Singapore’s exhibition hall, Chief Executive Stefano Bortoli shrugged off the threat of a comeback by Embraer which already makes smaller turboprops.

“I think once Embraer will let us know their decision you will have our comments. At this point in time it is simply commenting on opinions. Not that we will stand still,” he said.

The fundamental shape of the two-aircraft ATR family seating 40-78 people has not changed in about 30 years, but the aircraft was modernised with the -600 variant around a decade ago.

ATR recently launched a freighter and a version designed for use on short runways, which has opened opportunities in markets such as Japan and Papua New Guinea, where PNG Air emerged as a launch customer this week.

“The approach we’ve taken…is let’s consolidate the platform that we have…and when the right time comes and there are solid options available, let’s go for that,” Bortoli said.

ATR shareholders have clashed in the past about whether to launch a bigger new 90-seater, with Toulouse-based Airbus blocking the investment. But industry analysts say ATR would have to consider responding to a new plane from Embraer.

The prospect of greater competition in turboprop adds zest to efforts by Embraer to complete a tie up with Boeing, which has agreed to acquire control of its commercial division.

The European Commission has extended its scrutiny of the $4 billion deal, fearing that it would narrow options for airlines.

Slattery reiterated Embraer would only have the appetite to invest in a new turboprop in the context of the Boeing venture.

He declined to elaborate but industry experts say it is a signal to Europe that the Boeing deal would improve choice for airlines by prompting ATR to come up with its own new product.

One European source said it remained doubtful whether Boeing would support a new turboprop once it gained control of Embraer, but analysts note the U.S. planemaker has not yet ruled it out.

(Reporting by Tim Hepher, Jamie Freed; editing by David Evans)

FILE PHOTO: Groundcrew prepare a Liat airlines ATR 42 plane on the tarmac at Barbados’ Grantley Adams International Airport

New US Airline to make Flying a Breeze

February 10, 2020 / WIL BALDWIN

Written by Chris Frame

Travellers in the US are set to enjoy more choice in the air, with the formal launch of Breeze Airways announced last week.

Previously known by the code name “Moxy”, the new airline is the brainchild of experienced airline executive David Neeleman, who is renowned for having established four successful airlines during his career.

With the experience of establishing the likes of Morris Air, WestJet, Jet Blue and Azul, each of Neeleman’s new entrants are notable for introducing a variety of innovations to the market.

Today considered commonplace; leading customer experience improvements include e-ticketed bookings, inflight TV streaming and the opening up of routes to city pairs previously not served by existing carriers.

Click the link below for the full story!

https://australianaviation.com.au/2020/02/new-us-airline-to-make-flying-a-breeze/

International Route Changes

Asia, effective March 16

Australia and New Zealand, effective March 16

Europe, phased suspension

South America, effective March 16

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