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: A model of the Airbus A220-300 aircraft is seen at a media event at Indira Gandhi International Airport in New Delhi
OTTAWA (Reuters) – Airbus SE’s <EADSY> Canadian-designed A220 narrowbody jet has the potential to be stretched to carry more passengers but the company has no current plans to do so, a top executive said on Tuesday.
Air France KLM SA <AFLYY>, which has a firm order for 60 A220 jets, has expressed interest in a larger variant of the plane. The A220-100 model can carry from 100-120 passengers while the larger A220-300 takes from 120-150.
In a presentation to investors, Air France KLM last week posted a slide referring to a larger A220-500 plane.
“It’s no secret that the aircraft has potential to be stretched, potential to grow,” said Philippe Balducchi, head of an Airbus-led venture which took over production of the airliner in July 2018.
Airbus’ first responsibility was to make sure the two existing planes become established in the marketplace, he told Reuters on the sidelines of an aviation conference. After that the firm would decide how to develop its planes.
“Will (there) be an A220-500 or not? I cannot tell you that today. It’s definitely not my priority but there is the potential – we will see,” said Balducchi.
Montreal-based Bombardier <BDRBF> originally drew up designs for the airliner some 15 years ago but sold Airbus a 50.01 percent stake for a token fee of one Canadian dollar in 2018 after sluggish sales and low production rates pushed the program well over budget.
Balducchi sidestepped questions as to whether Airbus would buy Bombardier’s 33.58% minority stake, saying that was a decision for shareholders.
“I think Airbus is comfortable with the situation today,” said Balducchi.
Under the terms of the 2018 deal, Bombardier could oblige Airbus to acquire its stake in the program in 2026 for market value. Airbus could also oblige Bombardier to sell the stake.
Bombardier Chief Executive Alain Bellemare recently said the company is “looking at all options” regarding its stake, while specifying that such a decision “is not for today.”
The Canadian province of Quebec continues to hold a 16.41% stake in the program.
(Additional reporting by Allison Lampert in Montreal; Editing by Sonya Hepinstall)
Wizz Air, one of Europe’s fastest growing airlines and the largest low-cost carrier in Central and Eastern Europe today announced that it will massively expand its Polish operations, basing 4 new aircraft in Poland. From summer 2020 WIZZ will launch 15 new attractive routes from Gdansk, Krakow and Warsaw as well as increase weekly frequencies on the most popular services, adding a total of 24 incremental weekly flights to its Polish schedule.
Expanding its operations, Wizz Air creates over 160 additional direct jobs and will have a team of over 1100 dedicated crew based in Poland
Wizz Air’s commitment to Polish customers is underlined by the strong growth at its other seven Polish airports as well. With a network of 193 services, WIZZ will have a total of 13 million seats on sale on its Polish routes in 2020, which represents 20% growth year over year. WIZZ’s Polish operations do not only provide affordable access at WIZZ’s lowest fares between Poland and the rest of Europe, but also stimulate the local job market in aviation and tourism sectors, supporting more than 8200 jobs this year in associated industries throughout the country.
With the latest expansion of its Polish fleet, Wizz Air will have 30 based aircraft in Poland employing more than nearly 1300 customer-oriented crew, who deliver excellent service on each WIZZ flight. Wizz Air now offers 194 routes to 28 countries from nine Polish airports.
Tickets for all new routes are already on sale and can be booked from only PLN 59 on wizzair.com.
Stephen Jones, Deputy CEO and Managing Director Wizz Air Hungary, said: “Following the recent deployment of the 3rd based aircraft at Krakow Airport and announcement of new routes in Gdanskk and Warsaw, we are thrilled to announce further expansion of our Polish operations. By adding 4 new aircraft followed by 13 new routes to our Polish fleet we create a number of local jobs with the airline and our business partners while bringing more opportunities to the country. We are sure that our loyal Polish customers will welcome the extended offer of attractive destinations and affordable travel options and we are also confident that our low fares will attract more visitors to Polish cities, which could stimulate tourism and hospitality industries. We stay committed to Poland and keep on offering the lowest possible fares and an excellent value service on each WIZZ flight.”
DES MOINES, Iowa, Nov. 8, 2019 /PRNewswire/ — State and local officials joined executives from Allegiant Travel Company (NASDAQ: ALGT) today as the company announced plans to establish a two-aircraft base at Des Moines International Airport (DSM). The announcement heralds the leisure airline’s 20th base of operations, a $50 million investment which will locate two Airbus A320 aircraft in Des Moines, bringing at least 66 new, high-wage jobs to the community. The Las Vegas-based carrier will begin base operations at DSM on May 14, 2020.
“For Allegiant to select Des Moines International Airport as a base of operations is a historic day for Des Moines, our airport and the two-and-a-half million passengers who fly through our City each year,” said Des Moines Mayor Frank Cownie. “The financial investment and well-paying jobs this brings to our community is significant and most appreciated. And to those flight crews and ground personnel who will be our new neighbors, we say thank you for flying Allegiant and welcome to Des Moines.”
Iowa’s capital city and the Greater Des Moines region are the core of one of the fastest growing areas in the Midwest. Home to more than 791,000 residents, the region is known for iconic festivals and events, sports and outdoor recreation opportunities, as well as a burgeoning business environment. In recent years, Des Moines has been named among the nation’s top places to live (US News & World Report, 2018) and top locations for business and careers. (Forbes, 2017)
“In many ways, today’s announcement is the culmination of a more than 15-year relationship between Allegiant and Des Moines International Airport, where we’ve steadily grown our operation to meet increasing demand,” said Keith Hansen, Allegiant’s vice president of government affairs. “Having locally-based aircraft and crews will open up a wide range of options for new service and more flights throughout the day. We’re excited to bring more opportunities for affordable, convenient travel, and expand Allegiant’s presence as a hometown airline for Hawkeye state residents.”
Allegiant began service at DSM in 2003 and currently offers eight non-stop routes – to Orlando-Sanford, St. Pete-Clearwater, Punta Gorda, Destin-Fort Walton Beach and Sarasota, Florida; Phoenix-Mesa, Arizona; Los Angeles, California; and Las Vegas, Nevada. Allegiant in 2018 carried more than 232,000 annual passengers through Des Moines, and is on track to eclipse that number in 2019.
“The Des Moines International Airport continues to play a critical role in the economic vitality of the region with this announcement,” said Kevin Foley, Des Moines Airport Authority Executive Director. “Iowans continue to prove travel is important to them and DSM is committed to growing air service in our market. Through this partnership with Allegiant, not only will we be adding jobs in our community, we will be opening the door for new destinations and adventures.”
Allegiant, which employs more than 4,300 team members across the U.S., plans to immediately begin hiring pilots, flight attendants, mechanics and ground personnel to support the operations. The majority of the new positions are expected to offer salaries that are more than double the state’s average wage. Interested applicants may apply online.
“Allegiant’s investment in Greater Des Moines will significantly contribute to the vibrancy of our rapidly growing regional economy,” said Jay Byers, CEO of the Greater Des Moines Partnership. “The continued advancement of the Des Moines International Airport is one of our strategic priorities, and this expansion project will position DSM for multiple new destinations.”
LOS ANGELES (Reuters) – Amazon.com Inc <AMZN> Chief Executive Jeff Bezos has plans to slash greenhouse gas emissions from the online retailer’s delivery operations.
Yet the company’s use of airplanes – the most climate-damaging mode of transportation – is on the rise, according to data provided to Reuters.
Amazon Air’s U.S. volume has risen steadily since its 2016 launch, according to an analysis of Department of Transportation data by Cargo Facts Consulting https://www.cargofactsconsulting.com, a Luxembourg-based advisory firm with a global staff and more than four decades of history.
It crunched data from Air Transport Services Group Inc <ATSG> and Atlas Air Worldwide Holdings <AAWW>. Both supply planes and pilots for Amazon Air.
In July, Amazon Air flew 136 million lbs of goods in the United States, according to the data. That was up 29% from the year earlier and just 9 million lbs short of December 2018, when the peak holiday shipping season was in full swing.
For a graphic on more Amazon Air flights, click the link below:
Bezos has said Amazon will cut its use of airplanes as it builds more local warehouses and fills them with goods that it can deliver to customer doorsteps in one day, or even one hour.
But for the time being, Amazon’s air shipments are climbing as it speeds up deliveries to lure customers and pressure rivals like Walmart Inc <WMT> and Target Corp <TGT>.
In April, Amazon started offering no-minimum purchase, one-day free shipping to members of its Prime subscription service.
In the latest quarter, it saw delivery costs soar, and warned the holiday quarter would see costs for one-day shipping alone spike to $1.5 billion.
The Seattle e-retailer, which sends 10 billion packages a year, declined to say what percentage of its shipments travel by plane or give specific examples of how the latest drive to shave time off its standard two-day shipping affected air transport.
Last month, Amazon said its CO2 emissions in 2018 were 44.4 million metric tons and set a goal to be net carbon neutral by 2040.
“We expect the percent of total shipments to customers utilizing air transportation to reduce from year to year as we significantly increase one and same day shipments,” Amazon spokesman Sam Kennedy said, when asked about Cargo Facts’ data.
DELIVERY WARS
A standard package flown on a plane in the United States creates an estimated 6-10 times more CO2 emissions than one traveling by truck, said Jacques Leonardi, a senior research fellow in freight, logistics and sustainable distribution at the University of Westminster in London.
Amazon Air leases 47 planes and is expected have 50 by the end of the year. It operates roughly 110 daily flights in the United States and around 20 per day in Europe, according to Cargo Facts.
In June, shortly after FedEx Corp <FDX> said its planes would stop shuttling packages for the online retailer, Amazon Air announced plans to have 70 planes on lease by 2021.
But Amazon says it is getting closer to customers with an expanding network of well-stocked warehouses. Those local fulfillment centers underpin the company’s one-day and same-day delivery services.
In a news release issued Monday, Amazon said those options were “better for the planet” because there aren’t many miles in the trip to customer doorsteps.
Because those time windows are so tight, “you are eliminating the possibility of air transportation,” Amazon’s Bezos said in September. “Even though it’s counterintuitive, the fact of the matter is that shorter delivery times end up being less carbon-intensive than longer delivery times.”
Products from most of Amazon’s 158 U.S. distribution centers can be shipped to 65% of the population in one day, said Marc Wulfraat, president of supply chain consultancy MWPVL International.
Items like footwear, jewelry, auto parts and niche electronics come from 23 distribution centers that span the country – and will likely need to be moved by air for next-day delivery, Wulfraat said.
Amazon also depends on United Parcel Service Inc <UPS> for air shipments. The Atlanta-based delivery company has seen a bump in that business since Amazon began expanding free one-day delivery this spring, UPS executives and analysts said.
Domestic next day air volume at UPS surged more than 30% in the second quarter and was up nearly 24% in the third quarter – fueled by faster e-commerce shipping speeds and rival FedEx’s breakup with Amazon this summer.
“It’s not all from FedEx,” said Satish Jindel, the founder of logistics advisory firm ShipMatrix, noting that express and deferred air services revenue at UPS surged $852 million in the second and third quarters.
Amazon’s business was worth about $900 million to FedEx prior to their split, Jindel said. Express, which includes air shipments, accounted for roughly $540 million of that, he said.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Mark Potter)
Campus Nyland test, training and signaling simulation center opens
European Rail Traffic Management System (ERTMS) latest in intelligent infrastructure
Nordlandsbanen will open first digital signaling railway in October 2022
Bane NOR and Siemens Mobility celebrated the opening of Campus Nyland, a test, training and signaling simulation center which will help the rail network operator prepare for the digitalization of the entire system. Norway has committed to becoming the first country to operate with a single digital interlocking and ERTMS signifies one of the country’s largest digitalization projects. In 2022, the first digital line, Nordlandsbanen, will open. In advance, the Campus Nyland center will prepare workers for working within the digital system, ERTMS. The intelligent infrastructure behind ERTMS will reduce operating costs and increase capacity throughout the network. In addition, it will enhance safety, with real-time visibility of trains across the network. When complete in 2034, the system will include 4,200 km of track and more than 350 stations.
“Siemens Mobility is the main supplier to the Norwegian ERTMS program with their infrastructure, including interlockings and radio block centres (RBC). The Siemens Mobility solution is leading edge based upon an IP based architecture. With a strong technical roadmap and a proven ability to deliver, Siemens Mobility is the ideal partner for Bane NOR in this challenging program. We are thrilled to work together with Siemens Mobility to develop the digital rail,” said Sverre Kjenne, Executive Vice President Digitalisation and Technology, Bane NOR.
“Norway is on track to become the first country to operate in the “one country, one interlocking” architecture making it at the forefront of digitalization. Our intelligent infrastructure will ensure that the system operates efficiently. The digital interlocking, with IP controlled field components, and ERTMS are the backbone to greatly improving operations and maintenance. This architecture also opens the door for future developments such as implementing driverless technologies, moving the interlocking to the cloud, which would make proprietary hardware and spare parts a relic of the past, and would make data instantaneously available to transportation operators,” stated Michael Peter, Siemens Mobility CEO. “Campus Nyland is an important milestone in turning this vision into reality.”
Campus Nyland will be an industry center for digital education and will house more than 5,000 employees, who will learn the necessary digital skills needed to ensure ERTMS is successful when it goes operational. These will include individuals from Bane NOR, train companies, maintenance companies and contractors. Bane NOR will facilitate simulator training as well as physical training facilities. New technology, such as virtual reality, will be used to communicate how the tracks are built with ERTMS, as well as the design of trains and traffic control centers. More than 150 different scenarios are available for training within the highly digital training hub.
In the spring of 2020, the Roa – Hønefoss ERTMS test line opens. The new signaling technology will be monitored and tested from Campus Nyland.
The next important milestone in turning ERTMS into a reality will be the digitalization of the first Norwegian rail line. In October 2022, Nordlandsbanen, which operates from Grong to Bodø, and represents about 12 percent of the Norwegian railway will go operational.
Airbus and Spirit Airlines have agreed to a Memorandum of Understanding for the U.S.-based airline to acquire up to 100 A320neo Family aircraft. Spirit announced its intention to place firm orders for a mix of A319neo, A320neo, and A321neo to meet its future fleet requirements.
“This new order represents another milestone for Spirit,” said Spirit Airlines’ President and CEO Ted Christie. “The additional aircraft will be used to support Spirit’s growth as we add new destinations and expand our network across the U.S., Latin America, and the Caribbean. We look forward to working with our valued partners at Airbus to finalise our agreement.”
“The Airbus A320 Family has been a strong platform for the remarkable success of Spirit over the past several years,” said Airbus Chief Commercial Officer Christian Scherer. “The ongoing, enthusiastic spirit the airline demonstrates in our A320neo Family is most rewarding, and we look forward to playing a part in the Spirit team’s continued growth for many, many years to come.”
Spirit is a fast growing ultra-low-cost carrier in the Americas, based in South Florida.
Featuring the widest single-aisle cabin in the sky, the best-selling A320neo Family, comprising the A319neo, A320neo, and A321neo, deliver at least 20% reduced fuel burn as well as 50% less noise compared to previous-generation aircraft, thanks to incorporating the very latest technologies including new-generation engines and Sharklets. At the end of September 2019, the A320neo Family had received more than 6,650 firm orders from nearly 110 customers worldwide.
Oct 15 (Reuters) – United Airlines on Tuesday topped Wall Street estimates for quarterly profit, boosted by higher fares and lower fuel costs, and lifted its 2019 profit target despite the continued grounding of the Boeing 737 MAX.
Chicago-based United is one of three U.S. airlines that have each had to cancel more than 2,000 monthly flights through the end of the year as Boeing Co’s 737 MAX remains grounded following two deadly crashes in Indonesia and Ethiopia.
The flight cancellations have weighed on airline profits and costs, but strong travel demand, despite concerns of a global economic slowdown, continued to offset MAX headwinds and disruption in Hong Kong and China.
As a result, United raised its 2019 adjusted diluted earnings per share guidance to $11.25-$12.25 versus $10.50-$12.00 previously.
United shares, which closed up 1% at $87.88 before the earnings release, were about 1% higher in after-hours trading.
Total operating revenue rose 3.4% to $11.38 billion, underpinned by the airline’s three-year strategy to build up flight connections through its main U.S. hubs.
But closely watched unit costs excluding fuel and profit-sharing expenses, a concern for investors, rose 2.1%.
The airline, which is in talks with Boeing over 737 MAX compensation, did not provide any details on the estimated financial impact of the grounding.
Adjusted net income rose to $1.05 billion, or $4.07 per share, in the third quarter, from $834 million or $3.05 per share a year earlier.
Analysts on average had forecast $3.95 per share, according to IBES data from Refinitiv.
United management will host a conference call to discuss results on Wednesday at 10:30 a.m. EDT (1430 GMT).
Fellow U.S. MAX operators Southwest Airlines and American Airlines, which have both warned of a pretax profit hit from the MAX grounding, are due to report quarterly results next week.
United, Southwest and American are all scheduling without the MAX until early January.
(Reporting by Tracy Rucinski in Chicago and Sanjana Shivdas in Bengaluru Editing by Shinjini Ganguli and Matthew Lewis)
Air Austral, France’s Réunion Island-based airline, has signed a firm order for three A220 aircraft, Airbus’ newest family member. With this order Air Austral becomes the first A220 customer based in the Indian Ocean region. Benefitting from a 20% reduction in fuel burn and CO2 emissions, the A220s will enable Air Austral to reduce its costs and carbon footprint on international routes in the region.
“Air Austral has chosen the A220-300 as part of the renewal of its Medium and Short Haul fleet. These new-generation aircraft will join the airline from the end of 2020 with the aim of harmonising part of its fleet and strengthening its operations,” said Marie-Joseph Malé, Chief Executive Officer of Air Austral. The economic and operational performance of the A220 opens new possibilities for the development of our regional network from our main base – Réunion Island – in an efficient and rational way. The 132-seat capacity module, which is more flexible, will allow us to increase our frequencies while offering more comfort to our customers and crews,” he added.
“With its unrivalled performance and operational flexibility, the A220 is the perfect aircraft for Air Austral to reinforce routes between Réunion Island and its neighbours in the Indian Ocean, as well as connecting the island further afield,” said Christopher Buckley, Executive Vice-President Commercial – Airbus. “Airlines from all around the world are acknowledging the A220’s economics and it is a great honour that Air Austral will be the first A220 operator in the region.”
The design of the new clean sheet single-aisle aircraft allows for more seats, offering extra revenue potential to airlines, especially to those located in remote areas, and extra usable cargo volume capacity.
The A220 is the only aircraft purpose-built for the 100-150 seat market; it delivers unbeatable fuel efficiency and widebody passenger comfort in a single-aisle aircraft. The A220 brings together state-of-the-art aerodynamics, advanced materials and Pratt & Whitney’s latest-generation PW1500G geared turbofan engines to offer at least a 20% lower fuel burn per seat compared to previous generation aircraft, along with significantly lower emissions and a reduced noise footprint. The A220 offers the performance of larger single-aisle aircraft.
