BRUSSELS (Reuters) – The European Union’s competition watchdog on Monday approved French state aid worth 7 billion euros ($7.66 billion) for Air France <AF.PA>, saying the support would provide cash to soften the economic shock of the coronavirus pandemic.
Airlines across Europe have sought state rescues as coronavirus lockdowns have forced them to ground their fleets for more than a month, with no end in sight.
“This 7 billion euro French guarantee and shareholder loan will provide Air France with the liquidity that it urgently needs to withstand the impact of the coronavirus outbreak,” the EU’s top competition official Margrethe Vestager said in a statement.
The European Commission noted the importance of Air France, with more than 300 planes, to the French economy and the role it has played in repatriating stranded citizens and transporting medical supplies.
The Commission said in its statement that the support will take the form of a state guarantee on loans and a subordinated shareholder loan to the company by the French state.
The French and Dutch governments each hold close to 14% of the Air France-KLM group, which was created by the 2004 merger between the two national carriers.
(Reporting by Gabriela Baczynska and Robin Emmott, editing by Ed Osmond and Barbara Lewis)
FILE PHOTO: Air France airplanes on the tarmac at Paris Charles de Gaulle airport in Roissy-en-France
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.
Jacksonville, EUA, April 17, 2020 – Embraer Defense & Security and Sierra Nevada Corporation (SNC) announced the first of 12 A-29 Super Tucano light attack, combat and reconnaissance aircraft for the Nigerian Air Force (NAF) successfully completed its inaugural flight at the production facility in Jacksonville, Florida.
The full fleet of A-29 Super Tucano aircraft for the NAF are currently in production by SNC and Embraer at the Jacksonville facility with delivery to the NAF expected on schedule in 2021.
The NAF A-29 aircraft will now begin mission modification and final testing in Centennial, Colorado. Following final testing, before delivery, NAF pilots will train in the aircraft.
“This is an exciting milestone in the production of these A-29s for the Nigerian Air Force. The Jacksonville production line is active, and Embraer and SNC look forward to seeing these aircraft continue to roll off the line in the coming months,” says Jackson Schneider, president & CEO, Embraer Defense & Security.
“The aircraft met or exceeded all the requirements and we are very pleased with the successful flight,” stated Ed Topps, vice president of Tactical Aircraft Systems and programs for SNC’s IAS business area. “SNC and our partner, Embraer, are certain the Nigerian Air Force will be pleased with these aircraft.”
The combat-proven A-29 Super Tucano is the gold standard of light attack combat and reconnaissance aircraft around the world and is designed and built for the mission in Nigeria.
The A-29 Super Tucano is the most reliable and cost-effective solution for basic and advanced flight and combat training, close air support operations, Intelligence, Surveillance, and Reconnaissance (ISR), armed over-watch, counterinsurgency and irregular warfare scenarios.
The aircraft has already been selected by 15 air forces around the world to deliver cost-effective close air support and reconnaissance capabilities.
In December 2018, SNC and Embraer Defense & Security were awarded the contract to deliver 12 A-29 Super Tucano light attack aircraft to the Nigerian Air Force. The contract for the NAF includes ground training devices, mission planning systems, mission debrief systems, spares, ground support equipment, alternate mission equipment, contiguous U.S. interim contractor support, outside of continental U.S. (OCONUS) contractor logistic support and field service representatives for OCONUS support.
FILE PHOTO: A Malaysia Airlines plane is seen at Kingsford Smith International Airport in Sydney
KUALA LUMPUR (Reuters) – Privately held Golden Skies Ventures (GSV) has made a $2.5 billion offer to fully take over the holding company of ailing state carrier Malaysia Airlines, with financing from a European bank, its executives told Reuters on Monday.
GSV, which was set up by former Malaysia Airlines officials and professionals with aviation experience, made the proposal a month ago, as airlines around the world were hammered by travel restrictions following the coronavirus pandemic.
“We have secured in excess of $2.5 billion from the bank. We will take about three to four months to get the long-term financing,” Chief Executive Shahril Lamin told Reuters in a phone interview.
GSV said it also has a commitment from a Japanese private equity firm to inject immediate funds into the aviation group through an equity deal.
It declined to name the firms involved, adding it was in talks with other foreign banks and private equity firms for further funding.
GSV has submitted its proposal to Morgan Stanley which has been hired by the aviation group’s sole owner, sovereign wealth fund Khazanah Nasional Bhd.
Sources have previously said Japan Airlines Co Ltd, domestic carriers AirAsia Group Bhd and Malindo Air have shown interest in Malaysia Airlines.
GSV said it would assume most of the airline’s debt that is being held by the government in outstanding Islamic bonds.
Khazanah and Morgan Stanley did not immediately respond to emailed requests for comment.
GOLDEN SHARE
The proposal includes keeping the government’s so-called golden share which allows it majority voting rights and maintains Malaysia Airlines’ flag carrier status.
GSV expects it will have ample liquidity to help the airline operate comfortably for up to 18 months.
It intends to reinstate Malaysia Airlines as a premium long-haul airline by expanding its flight network and maximising utilisation of its 81-plane fleet. It also plans to keep other business units such as the budget airline, cargo freighter and maintenance repair and overhaul unit.
“It’s still a viable venture, it has inherent strengths. We are saying we won’t lay off the 13,000 frontline employees and we are not going to asset-strip the airline,” Deputy Chief Executive Ravindran Devagunam said.
The firm aims to achieve positive earnings before interest, taxes, depreciation and amortisation within three years of taking over, and targets 15 billion ringgit ($3.5 billion) in revenue in 2025.
Plans for a listing or possible listing of its units are on the cards in three to five years, they said.
Ravindran said the firm is banking on pent-up travel demand when the coronavirus is contained. “Regardless of how long (the virus) will take this year, we are looking at an uptick in the business from summer 2021.”
($1 = 4.3450 ringgit)
(Reporting by Liz Lee; Editing by David Holmes and Edwina Gibbs)
BEIJING/TOKYO (Reuters) – U.S. electric carmaker Tesla Inc <TSLA> plans to slash on-site staff at its Nevada battery plant by around 75% due to the coronavirus pandemic, the local county manager said on Thursday.
The move comes after its Japanese battery partner Panasonic Corp <6752.T> said it would scale down operations at the Nevada factory this week before closing it for 14 days.
The factory produces electric motors and battery packs for Tesla’s popular Model 3 sedans.
“Tesla has informed us that the Gigafactory in Storey County is reducing on-site staff by roughly 75% in the coming days,” Austin Osborne said in a post on the county’s website.
No further details were available and it was not clear how many employees work in the factory. Tesla did not immediately respond to a Reuters request for comment.
The Reno Gazette Journal, which earlier reported the planned suspension, said Panasonic has about 3,500 employees at the Nevada plant.
Tesla said last week it would temporarily suspend production at its vehicle factory in San Francisco Bay Area from end of March 23, as well as at its New York solar roof tile factory.
However, Tesla CEO Elon Musk said the company will reopen the New York plant “as soon as humanly possible” to manufacture ventilators for coronavirus patients.
Two employees of Tesla have tested positive for coronavirus but have been working from home for the past two weeks and had not been symptomatic at work, Tesla said in an email to employees on Thursday. It did not disclose which unit or at what location the employees work.
(Reporting by Yilei Sun and Makiko Yamazaki; Editing by Miyoung Kim and Himani Sarkar)
CAPE CANAVERAL, Fla., March 26, 2020 (GLOBE NEWSWIRE) — The successful March 26 launch of the U.S. Space Force’s sixth and final Advanced Extremely High Frequency (AEHF) military communications satellite aboard a United Launch Alliance (ULA) Atlas V rocket marked the 500th flight of Aerojet Rocketdyne’s RL10 upper-stage engine.
The RL10, which powers the ULA Atlas V Centaur upper stage, is one of several Aerojet Rocketdyne propulsion products supporting the mission. Aerojet Rocketdyne propulsion can be found on both the rocket and the AEHF-6 satellite. Built by Lockheed Martin, the AEHF satellites provide secure, jam-proof communications, including nuclear command and control, to U.S. and allied forces.
“This launch marks an important milestone for Aerojet Rocketdyne and for the country,” said Eileen Drake, Aerojet Rocketdyne’s CEO and president. “The RL10 has supported a majority of the nation’s most important national security and scientific missions, including all of the AEHF satellites which provide communication links that are critical to our warfighters.”
The Atlas V in the 551 configuration is the most powerful vehicle in the Atlas V family, featuring five Aerojet Rocketdyne AJ-60A solid rocket strap-on motors, each generating 348,500 pounds of thrust. Designed specifically to provide extra lifting power to the Atlas V, the AJ-60A is the world’s largest monolithic solid rocket motor ever flown.
The AEHF-6 satellite, meanwhile, is outfitted with three different types of Aerojet Rocketdyne thrusters for attitude control, orbital station keeping and maneuvering. These include 12 MR-103G and six MR-106E monopropellant thrusters; and four, 5-kilowatt-class XR-5 Hall-effect electric thrusters and associated power processing systems.
The Atlas V also uses Aerojet Rocketdyne reaction control thrusters on the Centaur upper stage, as well as pressure vessels provided by ARDÉ, an Aerojet Rocketdyne subsidiary. The rocket launched from Cape Canaveral Air Force Station, Florida, and the AEHF-6 satellite is on its way to its operating location in geostationary orbit.
In addition to the Atlas V, the RL10 also powers the upper stage of ULA’s Delta IV Heavy rocket. The RL10 has helped place hundreds of military, civil and commercial satellites into Earth orbit and has sent spacecraft to explore every planet in our solar system. The RL10’s proven reliability over more than five decades of service has made it the upper-stage engine of choice for three new rockets under development, including ULA’s Vulcan Centaur, Northrop Grumman’s OmegA, and NASA’s Space Launch System.
About Aerojet Rocketdyne: Aerojet Rocketdyne, a subsidiary of Aerojet Rocketdyne Holdings, Inc. (AJRD), is a world-recognized aerospace and defense leader that provides propulsion systems and energetics to the space, missile defense and strategic systems, and tactical systems areas, in support of domestic and international customers.
Alstom has been awarded a contract by AB Transitio, Region Skåne through Skånetrafiken, Region Blekinge, Hallandstrafiken AB, and DSB SOV to equip a fleet of 77 X31 regional trains with ERTMS onboard train control system, with an option of an additional 34 trains. All trains will be ready by end of 2023. The contract is worth about 35 million euro.
The trains are running in the growing Öresund region in the South of Sweden, and Eastern Denmark.
Alstom will install a solution that features an integrated dual system enabling the trains to run on legacy lines equipped with ATC-2 system in Sweden, whilst being also able to run on lines newly equipped with the ERTMS Level 2 system both in Sweden and Denmark. Furthermore, the trains are also equipped to run on the existing ZUB 123 system in Denmark. The design of the dual system minimizes hardware equipment by sharing some on-board components, and the wheel sensors. Alstom is the ERTMS market leader and is currently delivering a similar solution in Norway on over 400 trains, to be completed in 2026.
“We are very pleased to deliver an onboard control system solution for AB Transitio and their fellow vehicle owners for Öresundstrafiken. This contract is a strategic win for Alstom in Sweden, where its longstanding international ERTMS experience now will be applied to a major part of the train fleet in southern Sweden,” said Björn Asplund, Managing Director of Alstom Sweden.
“To us, an updated and modern train fleet is important as we see a steadily increasing flow of passengers to a region that continues to grow. With a new digital signalling system, the trains will continue to provide a very safe railway service in the Öresund region”, says Stefan Kallin, CEO of AB Transitio.
The project will be delivered by Alstom Sweden together with Alstom center of excellence for ERTMS in Charleroi, Belgium. Installation design and supply chain will be performed by the Alstom team in Copenhagen, Denmark.
Alstom’s Atlas is the worldwide number one in on-board ERTMS equipment, representing 70% of the on-board systems in service in ERTMS Level 2. Today, across 20 countries, trains under Atlas supervision have covered over 150 million kilometers, including Deutsche Bahn’s ICE3 fleet recently equipped in Germany. Alstom has also delivered the first ERTMS Level 3 in commercial service in the world in Germany.
Consortium of bidders led by Advent, Cinven and RAG foundation
Sales proceeds pave the way for further transformation of thyssenkrupp
Cash inflow remains within the company
Buyers give far-reaching site and employment guarantees for tk Elevator
Closing and purchase price payment expected by the end of the current fiscal year
Martina Merz: “With the sale of Elevator, thyssenkrupp can pick up speed again. We will reduce the company’s debt as far as is necessary and at the same time invest as much as is reasonable in its further development.”
thyssenkrupp sells its Elevator Technology business entirely to a consortium led by Advent, Cinven and RAG foundation. The respective Executive Board decision was approved on Thursday evening by the Supervisory Board of thyssenkrupp AG. The purchase agreement has been signed. Closing of the transaction is expected by the end of the current fiscal year. The purchase price is €17.2 billion. thyssenkrupp will reinvest part of the purchase price[1] (€1.25 billion) in a stake in the elevator business. The transaction is subject to merger control approvals, although thyssenkrupp does not expect the competent authorities to have any reservations. The proceeds from the transaction will remain within the company and are to be used to the extent necessary to strengthen the balance sheet. Alongside this, the proceeds shall be used to advance the development of the remaining businesses and the portfolio. As announced at the Annual General Meeting at the end of January, thyssenkrupp is proceeding the analysis phase so that a decision on the concrete use of funds can be taken in May.
Martina Merz, CEO of thyssenkrupp AG: “With the sale, we are paving the way for thyssenkrupp to become successful. Not only have we obtained a very good selling price, we will also be able to complete the transaction quickly. It is now crucial for us to find the best possible balance for the use of the funds. We will reduce thyssenkrupp’s debt as far as is necessary and at the same time invest as much as is reasonable in developing the company. With this, thyssenkrupp can pick up speed again.”
The sale of Elevator is a favorable solution not only for the company, its shareholders, customers and employees, but also for the elevator business itself. In the consortium, thyssenkrupp has found new owners for the elevator business who have extensive industrial expertise and offer the workforce a high degree of security. The buyers have a strong track record in profitably growing and nurturing companies to become global champions.
In negotiations with employee representatives and the IG Metall trade union, the buyers have committed to far-reaching site and employment guarantees. In addition, it was agreed that the buyers will continue to manage thyssenkrupp Elevator as a global group. The company will also remain based in Germany and employee co-determination will continue. That means the solution is in line with thyssenkrupp’s understanding of corporate and social responsibility.
“We are not pleased to part with our employees and the elevator business. Nevertheless, today is a good day for everyone involved. With this step, we are opening up real prospects for the future: for the elevator business as an independent company and, with the financial solidity we have gained, also for all other areas of thyssenkrupp,” Martina Merz added.
New Technology Creates Hyper Elevators That Can Go Sideways
Garmin is pleased to announce European Aviation Safety Agency (EASA) approval of an Automatic Dependent Surveillance-Broadcast (ADS-B) solution for the Dornier 328 jet and turboprop aircraft. SUN-AIR Aviation Group has selected a Garmin ADS-B solution for their entire fleet of 18 Dornier 328 aircraft that utilizes a Supplemental Type Certificate (STC) and “plug and play” installation kit from their certification partner Scandinavian Avionics, headquarters of The SA Group. This cost-effective Garmin ADS-B upgrade provides operators with an economical solution for complying with the ADS-B mandate in Europe.
“Garmin continues to lead the industry on a global scale with a broad range of ADS-B solutions that span all segments of aviation, including a wide-range of commercial, defense, regional and business aircraft,” said Carl Wolf, vice president of aviation sales and marketing. “We are thrilled to provide SUN-AIR with a technology solution that is cost-effective, easy to install and keeps them flying so they can continue to serve their valued customers.”
The ADS-B upgrade for the Dornier 328 is comprised of a pair of GTX 3000 ADS-B transponders and a GPS 3000, a high-integrity SBAS/WAAS position source, and a complete installation kit comprised of a pre-wired shelf, wire harness and consumption material. This solution is designed to easily interface to existing equipment on board the aircraft, reducing installation time and lowering the overall cost of compliance. Together, the GTX 3000 and GPS 3000 serve as a rugged, standalone ADS-B Out solution that meets the stringent demands of transport category aircraft around the globe.
“This Garmin ADS-B solution is an ideal upgrade for our aircraft because the installation design supports an abbreviated maintenance visit,” Kristoffer Sundberg, CEO SUN-AIR airlines. “For our workhorse fleet of aircraft, efficiency and minimal aircraft downtime are key, and Garmin and Scandinavian Avionics have addressed this with a straightforward upgrade.”
Designed by Scandinavian Avionics, the STC and slide-in rack contains all of the necessary Garmin equipment and paperwork for the ADS-B Out solution. Scandinavian Avionics has completed the initial installation on a prototype aircraft and expects to complete the upgrade on the entire SUN-AIR fleet in the coming months.
“Alongside Garmin, we have designed this STC so that Dornier 328 operators can take advantage of the installation efficiencies this upgrade affords,” said Michael Truelsen, CEO Scandinavian Avionics. “We look forward to continuing to work with Garmin to expand the aircraft eligibility list for this all-in-one, turn-key solution.”
The GTX 3000 and GPS 3000 Garmin ADS-B Out solution for the Dornier 328 has received EASA approval and is available immediately. For additional information regarding the STC, contact SUN-AIR or Scandinavian Avionics. Visit www.garmin.com/aviation for additional information.
