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Bombardier Strengthens Support Network in Europe with London Biggin Hill Service Centre Expansion

  • Expansion at Bombardier’s London Biggin Hill service centre will double the facility’s footprint to nearly 250,000 square feet
  • Increased capacity will benefit more operators of Bombardier business aircraft, including the new Global 7500 jet

London Biggin Hill Airport, February 5, 2020 – Bombardier proudly announced today the expansion of its London Biggin Hill service centre with the construction of a new and larger facility nearing 250,000 square feet (approximately 23,225 square metres) to replace its existing hangars. Scheduled to be operational by mid-2022, the new service centre will provide customers in the region with extended maintenance support and reinforce Bombardier’s customer service experience in Europe.

The facility will provide the space and flexibility to offer a full range of maintenance and refurbishment services on Bombardier’s vast portfolio of products, and has the capacity to accommodate as many as 14 Global 7500 aircraft at the same time. The expansion will introduce sought-after capabilities and state-of-the-art installations, such as component painting and interior refurbishment capabilities, component repair and overhaul workshops and training rooms. The site will also ensure a quick response to its customers’ repair needs with the integration of a brand-new parts depot. Over the next several years, this significant expansion will bring the facility’s workforce to more than 250 employees and beyond to meet expanding demand.

“With the expansion of the London Biggin Hill service centre, Bombardier is taking another step in showing its unwavering commitment to providing customers with industry-leading services on a global scale, and the OEM expertise they rightfully deserve,” said Jean-Christophe Gallagher, Vice President and General Manager, Customer Experience, Bombardier Aviation. “Europe continues to be a strong market for business aviation, and we’re glad to show our commitment to our customers with this important investment in the region.”

Bombardier’s London Biggin Hill service centre was inaugurated in 2017 and offers tip-to-tail heavy maintenance capabilities on LearjetChallenger and Global families of aircraft. The site is fully equipped to perform scheduled and unscheduled maintenance, modifications and avionics installations, and paint repair services. In 2019, the service centre added enhanced interior repair and refurbishment activities.

“The expansion of Bombardier’s service centre and the enhancement of its service and maintenance capabilities is a testament to the dynamism and attractiveness of the Biggin Hill Airport,” said Robert Walters, Commercial Director of London Biggin Hill Airport. “Bombardier has been a tremendous partner and, with this announcement, demonstrates its strong commitment to the continued growth of our world-class aviation hub.”

This expansion comes on the heels of numerous announcements in Bombardier’s vast support network, including the announcements of a new service centre at Miami-Opa Locka Executive Airport and of an expanded Singapore service centre, the recent addition of two U.S. line maintenance stations in Teterboro and Van Nuys, and the expansion of the Mobile Response Team (MRT) with a new Challenger 300 aircraft based in Munich, Germany.

Alstom Signs First Contract for Battery-Electric Regional Trains in Germany

Alstom will manufacture, deliver and maintain until 2032 eleven Coradia Continental battery-electric trains for regional traffic on the Leipzig-Chemnitz route on behalf of VMS (Verkehrsverbund Mittelsachsen) and with the support of ZVNL (Zweckverband für den Nahverkehrsraum Leipzig), the two authorities responsible for this line. The contract is worth approximately €100 million. Following this order, Alstom offers all types of traction systems on the market as well as the full range of emission-free drives, from efficient electric motors to hydrogen fuel cells and advanced battery traction. 

In 2014, Alstom had previously signed a contract with VMS for the delivery of 29 Coradia Continental electric regional trains (EMU). In order to bridge the 80 kilometres of non-electrified line between the cities of Chemnitz and Leipzig, the authority requested a battery-electric version (BEMU). The new trains will enter service in 2023. They will be built at Alstom’s German site of Salzgitter, in Lower Saxony. The battery traction sub-system is designed and supplied by Alstom’s traction centre of excellence in Tarbes.

“We are immensely proud to be providing the responsible authorities with a sustainable and perfectly-suited solution. Today, Alstom stands apart in being able to offer any form of emission-free traction currently on the market built into a proven solution. As a responsible company, Alstom has an intense focus on sustainable mobility, offering the best-fitting solutions that make it not only possible, but also cost-effective and attractive,” says Gian Luca Erbacci, Senior Vice President of Alstom Europe. 

The Coradia Continental BEMU trains will be similar to those already in service on the Dresden, Riesa and Zwickau routes. The main difference: they will also have high-performance batteries on the roof. The train, based on the proven Coradia Continental, builds on Alstom’s long experience in battery traction, gained with the Coradia iLint, Citadis trams and the Prima H3 locomotive. 

The Coradia Continental BEMU has a range of up to 120 kilometres and can be operated under catenary as well as on non-electrified sections. The three-car-trains will be 56 metres long and equipped with 150 seats. They will have a top speed of 160 km/h in battery mode. The capacity of the batteries (high-power lithium-ion) is calculated to ensure catenary-free operation of the line Chemnitz-Leipzig without any sacrifice in performance or comfort. 

Alstom’s Coradia range allows operators and transport authorities to offer their passengers regional trains that meet their needs and expectations, while demonstrating exemplary reliability and cost-effectiveness. Alstom has tailored the Coradia range to operate with all available emission-free power systems, from electric to battery-electric and hydrogen fuel cells. The latter, the Coradia iLint, powered by fuel cells and offering performance comparable to a diesel train while emitting nothing but water, has been in passenger service in Germany for over a year.

China’s HNA Steps Up Efforts to Sell Swissport at Big Discount

LONDON/FRANKFURT, Feb 5 (Reuters) – China’s HNA Group is resuming efforts to find a buyer for airport luggage handler Swissport despite facing a loss of several hundred million dollars on its initial $2.8 billion investment, four sources familiar with the matter told Reuters.

The Chinese conglomerate has rekindled talks with several heavyweight investment funds as it needs to raise cash to cut its debts, the sources said.

Rothschild is helping HNA identify prospective bidders, who are hoping to buy the Zurich-based business on the cheap after previous attempts to sell it stalled last year, the sources said, speaking on condition of anonymity because the process is not public.

U.S. buyout funds Apollo Global Management Inc and Cerberus as well as Canadian asset manager Brookfield have come forward to revisit a possible acquisition of Swissport, the sources said.

Two other U.S. investors – Bain Capital and Centerbridge Partners – are also looking to take part in a new auction, two of the sources said, adding interest from industry buyers had waned.

HNA is hoping to limit its losses and recoup at least $2.3 billion from the sale, one of the sources said.

But offers are expected to value Swissport at about $2 billion, two of the sources said, with one adding Apollo had previously offered $2.1 billion.

This means HNA may need to swallow a loss of more than $500 million to offload the business, which has annual core earnings of about $270 million, they said.

HNA, Apollo, Cerberus, Brookfield and Bain declined to comment, while Centerbridge was not available.

HNA bought Swissport for 2.7 billion Swiss francs ($2.8 billion) in 2016 in a deal that was meant to complement its sprawling portfolio of investments in aviation, logistics and tourism.

But the Chinese giant had to look into cashing out at the start of 2018 when its liquidity challenges turned it into one of China’s most indebted companies and forced it to quickly sell assets.

The 20-year old company, led by chairman Chen Feng, came under pressure after embarking on an aggressive M&A spree in the United States and Europe with deals worth an overall $50 billion.

It made a push into the travel and tourism industry, buying a 25% stake in Hilton Worldwide Holdings Inc in 2016 and then branched out into financial services, becoming the leading investor in Deutsche Bank.

But its M&A binge resulted in cash flow problems, prompting a review of all its business interests overseas.

HNA initially considered a possible listing of Swissport on the Swiss SIX Exchange in 2018, but then opted for an outright sale.

Apollo and Cerberus, which bought Paris-based Worldwide Flight Services (WFS) in 2018, were both initial contenders for Swissport, but negotiations stalled after the Swiss company secured a refinancing package in August.

($1 = 0.9727 Swiss francs)

(Reporting By Pamela Barbaglia and Clara Denina in London and Arno Schuetze in Frankfurt; Editing by Mark Potter)

Delta, American Suspend All China Flights as U.S. Government Takes Action

WASHINGTON/CHICAGO (Reuters) – Delta Air Lines Inc <DAL> and American Airlines Group Inc <AAL> decided on Friday to temporarily suspend all remaining U.S.-China flights after the U.S. State Department elevated a travel advisory over concerns about the coronavirus.

U.S. officials were due to hold a call with airlines later on Friday to discuss the Chinese flights. Some airline officials worried that if they did not voluntarily halt flights it would prompt the Trump administration to take formal action, potentially complicating any subsequent flight resumption.

The United States told citizens on Thursday not to travel to China due to the epidemic that has infected nearly 10,000 people and been declared a global emergency.

Pilots and flight attendants have been demanding airlines stop flights to the country, with American Airlines’ pilots filing a lawsuit on Thursday seeking an immediate halt.

“The decision to file a lawsuit was made out of concern for the safety of our pilots,” said Dennis Tajer, a spokesman for the Allied Pilots Association which represents American’s pilots.

As of Thursday United Airlines Holdings Inc <UAL> was still planning to operate some flights from San Francisco, even after its pilots union told its members they would be allowed to drop their trip without pay if they were concerned about flying to the country.

Delta and American had both announced lighter schedules to China earlier this week.

On Friday, American said operations to and from China would be halted starting on Friday through March 27. The carrier will continue to fly to Hong Kong.

Delta said its last China-bound flight departing the United States will leave on Monday, Feb. 3, with the last U.S. return flight departing China on Feb. 5.

The Delta suspension is set to last through April 30.

U.S. airline shares have posted heavy losses this week on concerns of the financial impact of the virus.

Other airlines that have stopped their flights to mainland China include Air France KLM SA <AFLYY>, British Airways <ICAGY>, Germany’s Lufthansa <DLAKY> and Virgin Atlantic.

Major Chinese carriers were still operating flights to and from the United States as of Friday.

(Reporting by David Shepardson and Tracy Rucinski; Editing by Nick Zieminski and Tom Brown)

FILE PHOTO: Delta Airlines sit at Reagan National Airport outside Washington.

American Airlines Pilots Union Sues to Stop China Flights

WASHINGTON/PARIS/SINGAPORE (Reuters) – A pilots union filed a lawsuit on Thursday seeking to immediately halt American Airlines U.S.-China service, as cabin crews worldwide voiced unease about exposure to the rapidly-spreading coronavirus which has killed more than 170 people in China.

Sri Lankan Airlines staff wear masks at Bandaranaike International Airport after Sri Lanka confirmed the first case of coronavirus in the country, in Katunayake

The Allied Pilots Association, which represents American Airlines pilots, cited “serious, and in many ways still unknown, health threats posed by the coronavirus.”

American, the largest U.S. carrier, did not immediately comment on the suit, filed in a Texas court. The Fort Worth, Texas-based airline announced on Wednesday it would next month suspend flights from Los Angeles to Beijing and Shanghai, but continue flights from Dallas.

The World Health Organization on Thursday declared the coronavirus outbreak in China a global emergency as cases spread to 18 countries.

The lawsuit came as an increasing number of airlines stopped their flights to China. Air France-KLM, for example, suspended its Beijing and Shanghai flights after cabin crews demanded an immediate halt.

Others that have dropped mainland Chinese destinations besides Wuhan, the outbreak’s center, include British Airways and Germany’s Lufthansa. Wuhan is closed to commercial air traffic.

Virgin Atlantic also said on Thursday it would suspend its daily operations to Shanghai from Sunday for two weeks because of the safety of customers and staff and a declining demand for tickets, but would continue flights to Hong Kong.

Other major carriers have kept flying to China, but protective masks and shorter layovers designed to reduce exposure have done little to reassure crews.

Thai Airways is hosing its cabins with disinfectant spray between China flights and allowing crew to wear masks and gloves.

“I don’t think it’s safe at all even with gloves and masks, because you catch it so many ways, like your eyes,” said one flight attendant, who spoke on condition of anonymity.

“My friends also feel unsafe and don’t want to fly,” she said. “When we fly, we don’t sleep a lot.”

Delta Air Lines and United Airlines are operating fewer China flights, with Delta offering food deliveries so crew can stay in their hotels.

Korean Air Lines Co Ltd and Singapore Airlines are sending additional crew to fly each plane straight back, avoiding overnight stays.

The South Korean carrier also said it was loading hazmat suits for flight attendants who might need to take care of suspected coronavirus cases in the air.

The outbreak poses the biggest epidemic threat to the airline industry since the 2003 SARS crisis, which led to a 45% plunge in passenger demand in Asia at its peak in April of that year, analysts said.

(Reporting by Laurence Frost, Aradhana Aravindan, Chayut Setboonsarng, David Shepardson and Tracy Rucinski Additional reporting by Caroline Pailliez in Paris, Josephine Mason in London, John Geddie in Singapore, Panu Wongcha-um in Bangkok, Jamie Freed in Sydney and Joyce Lee in Seoul; Writing by Jamie Freed and Tracy Rucinski; Editing by Marguerita Choy)

FILE PHOTO: An American Airlines Airbus A321 plane takes off from Los Angeles International airport

Germans Protest Against Tesla Gigafactory

BERLIN (Reuters) – Around 250 Germans on Saturday protested in the outskirts of Berlin where electric car startup Tesla is planning to build a gigafactory, saying its construction will endanger water supply and wildlife in the area.

The U.S. carmaker announced plans last November to build its first European car factory in Gruenheide, in the eastern state of Brandenburg.

Politicians, unions and industry groups have welcomed the move, saying it will bring jobs to the region, but environmental concerns drove hundreds of locals to the streets on Saturday.

“We are here, we are loud, because Tesla is stealing our water,” protesters called.

Saturday’s protest came after a Brandenburg water association on Thursday warned against “extensive and serious problems with the drinking water supply and wastewater disposal” for the proposed factory.

Anne Bach, a 27-year-old environmental activist, said Tesla’s plans published earlier this month showed it would need more than 300 cubic meters of water per hour which would drain the area’s declining reserves.

“I am not against Tesla … But it’s about the site; in a forest area that is a protected wildlife zone. Is this necessary?” Bach said.

“In such an ecological system like the one here and with the background that climate is changing, I cannot understand why another location was not selected from the beginning,” said Frank Gersdorf, a member of “Citizens’ Initiative Gruenheide against Gigafactory”, a local group that organised Saturday’s protest.

Environmentalist protests in Germany have previously halted and delayed major companies’ plans such RWE’s lignite mining at the Hambach forest, near Cologne, which has become a symbol of the anti-coal protests.

Saturday’s protest, which Gersdorf and Bach said developed spontaneously from a 50-people forest walk demonstration, highlighted the deforestation of around 300 hectares to build the factory and its impact on wildlife, including birds, insects and bats.

People were also protesting against an expected “enormous” increase in traffic on a nearby highway and through the villages.

Next to the protest, on the other side of the street, around 20 people carried banners welcoming Tesla in their village, with children chanting, “We are here, we are loud, because Tesla is building our future.”

Bernd Kutz, a Gruenheide local, said Tesla would bring improvement to the area, create jobs and give chances to young people.

“I am here because I don’t understand those demonstrators who shout and show us the finger,” Kutz said. “Why has it always to be negative?”

(Reporting by Riham Alkousaa; editing by Christina Fincher)

‘You’re stealing our water’: Germans protest against Tesla gigafactory
Demonstrators hold anti-Tesla posters during a protest against plans by U.S. electric vehicle pioneer Tesla to build its first European factory and design center near Berlin

Daimler, Volvo Mull Combustion Engine Cooperation

BERLIN (Reuters) – Luxury German carmaker Daimler <DDAIF> and Volvo Cars, owned by China’s Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources.

The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody.

A Daimler spokesman said the company’s cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further.

Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs.

In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines.

The Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains.

Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China.

Geely bought Volvo Cars in 2010 from Ford Motor Co <F.N>, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands.

Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely’s Lynk brand. Both companies share and develop common vehicle platforms.

(Reporting by Emma Thomasson and Georg Merziger; editing by Jason Neely)

Ryanair’s O’Leary Prepared for More 737 MAX Delays

FILE PHOTO: Michael O’Leary of Ryanair at the Four Courts in Dublin

BERLIN (Reuters) – Ryanair <RYAAY> is prepared for further delays to the delivery of its Boeing <BA> 737 MAX airliners, its chief executive Michael O’Leary told German magazine Wirtschaftswoche, adding that he would only discuss compensation after the aircraft had been delivered.

The 737 MAX airliner has been grounded since March following two crashes which claimed 346 lives.

One of the world’s largest airlines, Ryanair has ordered 135 of the jets.

“We were meant to have 58 planes by the summer,” O’Leary said in the interview, extracts from which were published on Friday. “That went down to 30, then 20, then 10 and the latest is maybe only five. It’s possible we’ll only get the first jets in October 2020.”

In contrast to other airlines, including Turkish, Southwest Airlines <LUV> and Germany’s TUI <TUIFY>, which have already agreed compensation with Boeing, O’Leary added that he would only discuss compensation after the planes were delivered.

(Reporting by Thomas Escritt; editing by Thomas Seythal)

Russia’s St Petersburg Airport Expects to Host Ryanair, Others in 2020

MOSCOW (Reuters) – Low-cost airline Ryanair and other budget carriers are expected to start flying from Russia’s St Petersburg airport in 2020, the Russian Transport Ministry said.

The move is part of Russia’s plan to boost tourist flows to St Petersburg and will mean more competition for Russian air carriers, including national flag carrier Aeroflot.

The ministry said on Tuesday that Ryanair, EasyJet, WizzAir, Volotea, Air Baltic and Fly One had expressed interest in flights from St Petersburg’s Pulkovo airport, Russia’s fourth largest after Moscow’s three major hubs.

It said the companies had applied for flights from Pulkovo, coded LED by the International Air Transport Association, to 22 countries, including Britain, Germany and France.

Russia will introduce a so-called “Open Skies” regime for the companies for five years, the ministry said, allowing airlines to fly to St Petersburg without requiring the traditional bilateral inter-governmental agreements.

The move follows the introduction of a special electronic visa system for tourists visiting St Petersburg which nationals from 53 countries can take advantage of.

(Reporting by Gleb Stolyarov; Writing by Andrey Ostroukh,; Editing by Andrew Osborn and Ed Osmond)

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