Kinshasa, Democratic Republic of the Congo, December 10th, 2019 – Embraer and Congo Airways have signed a firm order for two E175 aircraft, with purchase rights for a further two. The deal has a total value of USD 194.4 million at current list prices with all purchase rights exercised, and will be added to Embraer’s 2019 fourth quarter backlog.
Desire Bantu, CEO of Congo Airways said, “These new jets will replace our current turboprop offering and allow us to serve routes both within the Democratic Republic of Congo, and regionally to West, Central, and Southern Africa, from our hub in Kinshasa. We will now have the flexibility and the right sized aircraft to serve our market, which is growing so rapidly an additional order may be required, for which the E2 is a particularly compelling option.”
Raul Villaron, Vice President Sales, Africa and Middle East, Embraer Commercial Aviation, said, “It’s great to welcome another airline to the Embraer family of operators, especially in Africa where the demand for regional travel is growing strongly. We look forward to supporting Congo Airways as they continue to upgrade their offering to their customers.”
The aircraft will be configured in a dual class layout seating 76 passengers in total, with 12 in business class. Deliveries will begin in the fourth quarter of 2020.
Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers across the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleets of 80 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline network carriers.
CHICAGO, Dec 3 (Reuters) – United Airlines Holdings Inc announced on Tuesday an order for 50 Airbus SE A321XLR jets to fly between the U.S East Coast and Europe, becoming the latest U.S. airline to ink a deal for the European planemaker’s new passenger jet.
The long-range A321XLR jets will replace United’s 53 Boeing 757-200 planes beginning in 2024, the Chicago-based planemaker said, flying to cities like Porto, Portugal and other potential new destinations.
United’s 757 planes will reach the end of their lifespan in about a decade and Boeing Co is not building any more of the large single-aisle model.
Instead, the U.S. planemaker has been considering a new twin-aisle plane, provisionally known as the NMA, but has delayed a launch decision until 2020 while it manages the ongoing global grounding of its 737 MAX jets following two fatal crashes.
United’s chief operating officer Andrew Nocella told reporters the airline has worked closely with Boeing on the potential new aircraft and is still open to orders if the planemaker decides to move forward with developing the NMA.
Meanwhile, U.S carriers including American Airlines Group Inc, JetBlue Airways Corp and Spirit Airlines Inc have agreed orders for Airbus A320neo-family jets.
Among the benefits of the A321XLR is a 30% lower fuel burn per seat compared to previous generation aircraft, United said.
United has also ordered the larger A350 widebody jets but said it is deferring delivery of those jets until they are needed in 2027.
Its A321XLR order is the second for a U.S. carrier following tariffs that the United States is imposing on European-made aircraft.
(Reporting by Tracy Rucinski Editing by Chris Reese and Michael Perry)
SYDNEY (Reuters) – Hong Kong carrier Cathay Pacific Airways Ltd <CPCAY> plans to cut passenger flight capacity by 1.4% next year, reversing an earlier plan for a boost of 3.1% because of a challenging business outlook, an internal memo reviewed by Reuters showed.
The capacity reduction follows Cathay Pacific cutting its second-half profit guidance earlier this month, the second cutback in less than a month, because of anti-government protests that began in Hong Kong in June that have discouraged travel to the city.
“Given the immediate commercial challenges and the fact that our position has deteriorated in recent weeks, we must take swift action to adjust our budget operating plan for 2020 downwards again,” Chief Executive Augustus Tang said in the memo.
“Put another way, rather than growing our airlines in 2020, for the first time in a long time, our airlines will reduce in size.”
Revenue performance continues to be disappointing and advance bookings into 2020 remain much lower than expected due to weak traffic from some of its key markets, particularly mainland China, the memo said.
A Cathay representative said the carrier had no comment.
Full-service carrier Hong Kong Airlines, backed by indebted Chinese conglomerate HNA, also said on Friday it would further reduce its capacity to mitigate the impact from the political unrest.
Several Asian airlines have also cut flights to Hong Kong, as the protests in the financial hub and an escalating China-U.S. trade war have pushed the Chinese-ruled territory into recession for the first time in a decade.
Hong Kong has enjoyed a week of relative calm since local elections on Sunday delivered an overwhelming victory to pro-democracy candidates.
But protesters stirred support for more rallies over the weekend, as police withdrew on Friday from a university campus where some of the worst clashes with security forces had occurred as part of nearly six months of unrest.
Shares in Cathay rose 0.8% on Friday, outperforming a 2% drop in the broader market.
(Reporting by Jamie Freed in Sydney; Writing by Miyoung Kim; Editing by Clarence Fernandez and Christian Schmollinger)
A passenger walks to the First Class counter of Cathay Pacific Airways at Hong Kong Airport in Hong Kong
Nov 29 (Reuters) – Airlines that fly to and from Hong Kong will be able to keep their prized airport slots even if they temporarily cut capacity due to weak travel demand through March, according to the Hong Kong Civil Aviation Department.
Many airlines, including flagship home carrier Cathay Pacific Airways Ltd, South African Airways and Malaysia’s AirAsia Group Bhd have cut flights to and from Hong Kong temporarily as a result of sometimes violent anti-government protests that have led to a sharp fall in tourist and business travel demand.
More than 5,800 people have been arrested since the unrest broke out in June over a proposal to allow extraditions to mainland China, the numbers grew in October and November as violence escalated.
Under more normal conditions, it is tough for airlines to get take-off and landing slots at Hong Kong’s airport because it lacks capacity until a third runway will come into operation in 2024.
A “use-it-or-lose-it” rule stipulates an airline normally only keeps slots out of historic precedence if it can demonstrate it used them at least 80% of the time in the previous airline scheduling season.
The current winter season, which began on Oct. 27, ends on March 28, 2020.
Hong Kong’s Civil Aviation Department said in a statement to Reuters on Thursday evening that in order to provide airlines with greater flexibility in aircraft deployment to deal with the fall in passenger demand, the “use-it-or-lose-it” rule had been temporarily suspended for the winter season.
Airport Authority Hong Kong reported declines in October of 13% in passengers and 6.1% in the number of inbound and outbound flights – the steepest falls since the unrest began.
(Reporting by Jamie Freed in Sydney Editing by Marguerita Choy)
FILE PHOTO: FILE PHOTO: British Airways logos are seen on tail fins at Heathrow Airport in west London
(Reuters) – British Airways and its pilots’ union BALPA have reached a preliminary agreement to end the pay dispute that resulted in the first walkout by pilots in the airline’s history, the union said on Friday.
The agreement came after the two sides held talks under the auspices of the ACAS arbitration service.
BALPA said in a statement: “We can confirm that BALPA, BA and ACAS have put together a new pay and conditions proposal and, subject to final checks, BALPA expects it will shortly be consulting its 4,000 BA members on them.”
A BA spokeswoman said “We welcome this positive step.”
As part of the agreement, BA agreed to insert an inflation protection clause to its previous pay offer of an 11.5% rise over three years, the Financial Times reported.
The airline also offered improvements to working conditions, rostering and flight bonuses, the paper added.
British Airways pilots went on strike for 48 hours in September, grounding 1,700 flights.
BA, part of International Consolidated Airlines Group <ICAG.L>, said in September that the strikes had cost it 137 million euros ($151 million).
(Reporting by Alistair Smout in London and Rama Venkat in Bengaluru; editing by Jonathan Oatis and Louise Heavens)
NEW YORK, Nov 19 (Reuters) – A former British Airways executive who oversaw the carrier’s operations at New York’s John F. Kennedy International Airport has been indicted for accepting bribes to help a ground handling company win contracts, New York’s attorney general said on Tuesday.
The charges announced by Attorney General Letitia James against Steven Clark, who she said directed British Airways operations at JFK Terminal 7, arose from “Operation Greased Runway,” a probe into contracting and procurement at JFK.
John Kinsella, a former chief executive of Ground Services International (GSI) accused of making improper payments to Clark, was also charged in the case.
Both defendants pleaded not guilty, according to their respective lawyers. British Airways, part of International Consolidated Airlines Group SA, was not charged.
James said Clark received more than $5 million and a secret 5% stake in GSI over several years from Kinsella, in exchange for promoting that company’s services.
According to court papers, payments were concealed from Britain’s flag carrier with fake invoices, and sometimes laundered through companies that Clark or Kinsella created.
James said Clark also received improper sums from another vendor, while Kinsella paid an executive who helped run JFK Terminal 1, which houses several airlines, to win his support.
Clark, 61, of New York, and Kinsella, 59, of Naples, Florida, were each charged with several counts, including bribery and money laundering, and arraigned before a New York state judge in Queens.
“Mr. Clark is innocent of the charges to which he pleaded not guilty, and expects to be vindicated,” Clark’s lawyer Kevin O’Brien said in a phone interview.
Kinsella’s lawyer Brian Legghio said his client was also innocent, looked forward to clearing his name, and had been awarded his JFK contacts on merit and based on his reputation. He said Kinsella sold GSI three years ago.
GSI agreed with James’ predecessor Barbara Underwood last December to a $12.3 million settlement related to the probe.
“Today’s indictment sends a clear massage to airline companies and airport vendors: pay-to-play schemes will not fly in New York,” James said in a statement.
(Reporting by Jonathan Stempel in New York Editing by Tom Brown)
Etihad’s ‘Greenliner’ to serve as platform for testing ways to reduce fuel use and emissions
Multiple services agreements would support even more efficient 787 operations at Etihad
DUBAI, United Arab Emirates, Nov. 18, 2019 /PRNewswire/ — Boeing (NYSE: BA) and Etihad Airways announced today that one of the airline’s 787 Dreamliner airplanes will serve as a flying laboratory for testing procedures and initiatives that could further reduce fuel consumption and carbon emissions, as a part of a growing partnership to advance the sustainable growth of aviation.
“Innovation, productivity and sustainability are core values and objectives of Etihad Airways and of Abu Dhabi said Tony Douglas, Group Chief Executive of Etihad Aviation Group, at the 2019 Dubai Airshow. “The Boeing 787 Dreamliner is a key enabler of all three.”
The specially-themed 787 will enter service early next year and operate regular flights in Etihad Airways’ network, while periodically serving as a test bed for assessing environmental sustainability initiatives. The project builds on Etihad’s ample experience with the super-efficient airplane.
“The 787 Dreamliner and its track record of environmental performance makes it the perfect platform to advance our industry’s commitment to sustainable growth,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. “We look forward to continuing our collaboration with Etihad Airways to identify more opportunities to improve efficiency across commercial aviation.”
Beyond the environmental testing on the airplane, the two companies will build on the technical capabilities that Etihad Airways has developed while maintaining its own Dreamliner fleet and that of other operators. As part of the strategic partnership, the companies are discussing several areas where they can work together to improve operational efficiency.
Boeing and Etihad Airways also announced that Boeing will provide multiple services for the airline’s Dreamliner fleet, including the Component Services Program, Landing Gear Exchange, and High-Value Components Exchange, programs that help an airline simplify asset and maintenance management, reduce spare parts costs while improving parts availability. The agreements also include a customized material parts package and three Quick Engine Change (QEC) kits that enable Etihad to quickly return an airplane to service if an engine needs to be repaired or replaced.
“Boeing’s global supply chain footprint will allow ready access to parts, support and services, when and where it’s needed,” said Ted Colbert, president and chief executive officer of Boeing Global Services. “We are proud to partner with Etihad Airways to increase maintenance efficiency and maintain aircraft operability.”
These agreements build upon a history of partnership between the two companies. Both are members of a research consortium to encourage the development of sustainable aviation fuels in the region.
LONDON (Reuters) – U.S. buyout fund Warburg Pincus said on Monday that it had clinched a deal to sell its European airline services firm Accelya to rival private equity fund Vista Equity Partners for an undisclosed amount.
The deal, which was first reported by Reuters, allows Warburg Pincus to fully cash out after backing the Barcelona-based company for the past two years.
The U.S. investment firm launched an auction process during the summer to find a new owner for the business which serves more than 200 airlines including British Airways, Lufthansa and EasyJet.
Warburg Pincus bought Accelya from French private equity firm Chequers Capital in 2017 and quickly tripled its revenues by merging it with Mercator, a Dubai-based travel services group in which the U.S. buyout firm had been an investor since 2014.
Vista Partners, whose portfolio is mostly focused on software companies, was recently vying to buy a majority stake in WPP’s (WPP) data analytics firm Kantar but lost it to Bain Capital.
Its Chief Executive Robert Smith said Accelya was “at the forefront of innovation and positioned to shape the airline and travel industry for decades to come.”
Accelya employs 2,500 employees across 24 offices in 14 countries and recently signed a long-term deal as the International Air Transport Association’s (IATA) technology partner.
Bank of America (BAC) and Evercore advised Warburg Pincus on the deal while Vista hired Goldman Sachs (GS) and Houlihan Lokey to work on the purchase.
Law firm Kirkland & Ellis and Simpson Thacher served as the legal advisors to Warburg Pincus and Vista, respectively.
Reporting by Pamela Barbaglia; Editing by Susan Fenton
Dubai, UAE, November 17, 2019 – Embraer and Cairo-based CIAF Leasing have signed a firm order for three E190 aircraft. The deal has a value of USD 161.4 million at current list prices and will be added to Embraer’s fourth quarter backlog.
The three new aircraft will join CIAF’s existing fleet of three E170s, two of which are on lease with Jasmin Airways, the other with Air Cairo. CIAF are also due to receive two E195s in mid-November.
Dr. Hassan Mohamed, Chairman and CEO of CIAF Leasing said, “The three new E190s will be an excellent addition to our growing fleet of Embraer E-Jets. With a fleet of E170s, E190s, and E195s, CIAF will have the flexibility to offer to both our wet and dry lease customers a service that fits their needs exactly.”
Raul Villaron, Vice President Sales, Africa and Middle East, Embraer Commercial Aviation said, “CIAF is rapidly increasing its footprint in both wet and dry leasing with the addition of further aircraft to their fleet and the establishment of their own AOC (Air Operator Certificate) in June this year. It’s a pleasure to work with an organisation that’s going from strength to strength by exploiting the benefits a family of aircraft can provide.”
All three aircraft will be delivered in the fourth quarter of 2020, in a new livery showing off CIAF’s new visual identity.
Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers across the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleets of 80 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline network carriers.
FILE PHOTO: Emirates Airline Boeing 777 planes at are seen Dubai International Airport in Dubai
DUBAI (Reuters) – An eight-month crisis over the grounding of Boeing’s 737 MAX jets and widespread industrial delays are setting an unpredictable backdrop to next week’s Dubai Airshow, with some airlines reviewing fleet plans even as others look for bargains.
The biennial civil and military expo is a major showcase for wares from jumbo jets to military drones but faces growing questions over demand and the capability of overstretched suppliers, delegates arriving for the Nov. 17-21 event said.
Top of their agenda will be the worldwide grounding of the 737 MAX in the wake of two deadly crashes.
Investors who have pushed up Boeing <BA> shares believe the planemaker is turning a corner after the eight month grounding, with the company predicting commercial flights in January. But it also faces a logjam of undelivered jets that could take 1-2 years to unwind.
State-owned flydubai expects its fleet will now shrink by a third this year, highlighting the cost of the grounding for the biggest MAX customer outside the United States. “Flydubai has very big ambitions … given the scale of those ambitions, there’s little they can do but wait and watch, like everyone else,” said Teal Group analyst Richard Aboulafia.
Boeing lost one potential MAX customer earlier this year as Saudi budget airline flyadeal ditched a provisional order.
Experts say airline frustrations with plane and engine makers could also disrupt plans by the world’s largest jetmakers pushing for order endorsements. The Middle East’s largest aerospace event will give Airbus <EADSY> and Boeing a chance to sit with some of their top customers who have threatened to walk from billions in deals.
The planemakers are struggling to deliver aircraft on time, forcing airlines to delay expansion plans, while engines on some jets are consistently causing issues for carriers.
“This seems to be a systemic issue across the board,” said Novus Aviation Capital Managing Director Mounir Kuzbari.
“As a result, we see stress on the relationship between airlines and the plane and engine makers.” Dubai’s Emirates, by far the region’s biggest airline, has issued a stern warning to plane and engine makers. It will no longer take delivery of aircraft that do not meet performance expectations, raising doubts over $35 billion in pending orders.
Airbus, Boeing and engine makers will be looking to allay concerns as they finalise jet sales with Emirates, which is also looking at reducing an order for the delayed Boeing 777X.
Airbus is seen close to a final order for A330neo and A350 jets while Boeing aims to salvage a provisional order for 787s.
GULF PRESSURE
Air Arabia could, however, steal the show with a planned order of up to 120 Airbus jets, industry sources say.
Kuwait’s Jazeera Airways is in negotiations with Airbus and Boeing for around two dozen airplanes.
Past editions of Dubai’s premier trade event have featured blockbuster deals, often led by Emirates as Gulf carriers redrew the aviation map around their ‘super-connector’ hubs.
But the Gulf hub model is increasingly under pressure as the once-rapid growth of the region’s biggest airlines slows.
“The market continues to be weak for all airlines in the region; we should see a further 2-3% reduction in passenger numbers for the full year,” said Diogenis Papiomytis, Frost & Sullivan’s Global Program Director for Commercial Aviation.
Middle East military leaders touring the displays will try to gauge whether they are on the cusp of another regional splurge on weapons after an escalation in Gulf tensions.
A series of attacks over the summer has highlighted potential security gaps among some of the world’s top defence spenders who now increasingly buy from China and Russia.
(Reporting by Alexander Cornwell, Tim Hepher, Ankit Ajmera, Stanley Carvalho; Editing by Mark Potter)
