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Qantas Pauses Airplane Deliveries from Airbus and Boeing

Qantas planes are seen at Kingsford Smith International Airport in Sydney, Australia

SYDNEY (Reuters) – Qantas Airways Ltd <QAN.AX> said on Monday it had advised Airbus SE <AIR.PA> and Boeing Co <BA.N> that it did not expect to take delivery of any new planes in the near term as it grapples with a plunge in demand due to the coronavirus pandemic.

The airline had expected to add three Boeing 787-9 jets to its fleet by the end of 2020 and to start taking delivery in August of the first of 18 Airbus A321neos due by 2022.

There is no longer a specific timeline for them to arrive because the market is too uncertain, a Qantas spokesman said, confirming a report on travel website Executive Traveller.

Many carriers around the world have grounded the bulk of their fleets and halted aircraft deliveries in response to the pandemic, leading Airbus and Boeing to cut production rates.

Qantas last week said it had shelved plans to order this year up to 12 A350s capable of the world’s longest commercial flights from Sydney to London. It said it was reviewing its fleet with the expectation that most international travel could take years to rebound.

More than 25,000 of the airline’s staff have been stood down until at least the end of June as the carrier is flying only 5% of its pre-crisis domestic passenger network and 1% of its pre-crisis international network.

An Airbus spokesman said his company did not comment on delivery schedules for airlines. Boeing did not respond immediately to a request for comment.

(Reporting by Jamie Freed; Editing by Himani Sarkar)

CDB Financial Scraps Purchase of 29 Boeing 737 MAX Jets

SYDNEY (Reuters) – China Development Bank (CDB) Financial Leasing Co said on Monday it had agreed with Boeing Co <BA.N> to cancel the purchase of 29 undelivered 737 MAX jets, adding to a string of recent cancellations of the grounded airplane.

The model has been grounded globally for more than a year following deadly crashes in Indonesia and Ethiopia.

“In light of evolving aviation market dynamics, we’ve been working together with Boeing over many months to re-calibrate our MAX orderbook to be in line with our long-term view of the market and related opportunities,” Xuedong Wang, chairman of CDB Financial unit CDB Aviation, said in a statement.

The lessor said it retained an order for another 70 of the planes that also have yet to be delivered.

Boeing recorded a total of 150 MAX cancellations in March, including 75 from Irish leasing company Avolon. Boeing remains in talks with regulators seeking approval to return the plane to service, but its customers have also seen a sharp fall-off in demand due to the coronavirus pandemic.

Boeing said in a statement it continued to partner with leasing company customers to help them balance their portfolios in a challenging market.

“As we work to return the 737 MAX to service, our focus remains on addressing our customers’ fleet needs while optimising the delivery of the more than 4,000 airplanes in our 737 backlog,” it said.

“As market conditions normalise, Boeing anticipates that lessors who have restructured or reduced their orderbooks will continue to add MAX aircraft to their portfolios through sale leaseback agreements with airlines,” the planemaker said. “Longer term we expect these lessors will again place orders for direct MAX purchases.”

CDB Financial Leasing said that all 737 MAX 10 jets still on order will be switched to the smaller 737 MAX 8 model, and 20 deliveries will be deferred to dates in 2024, 2025 and 2026.

(Reporting by Jamie Freed; additional reporting by David Shepardson in Washington Editing by Tom Hogue and Muralikumar Anantharaman)

A Boeing 737 Max aircraft is seen parked in a storage area at the company’s production facility in Renton

EasyJet Says Can Ride Out 9 Month Shutdown and Slow Recovery

FILE PHOTO: EasyJet planes parked at Luton airport after the airline grounded its entire fleet

LONDON (Reuters) – EasyJet can survive a nine-month shutdown thanks to its measures to contend with the coronavirus crisis and is planning for a slow recovery, the British airline said on Thursday.

As airlines worldwide battle for survival after lockdowns and travel bans brought the sector to a virtual standstill, EasyJet announced a new fleet plan to manage its emergence from the enforced hibernation.

The UK-based company said it will start to shrink its fleet and the number of planes it operates will not reach pre-crisis levels until 2022, signalling that it does not expect a quick recovery for the industry.

“We’ve been able to adapt ourselves to reduced demand for the next couple of years, then have the flexibility to increase as demand picks up again,” Chief Executive Johan Lundgren told reporters.

The industry is split on how quickly the sector can recover. Lufthansa, plane manufacturers and airline body IATA have warned that it will be a slow process. EasyJet’s bigger low-cost rival Ryanair, meanwhile, has predicted a swift rebound in traffic.

Lundgren said that, while he does not expect the grounding of easyJet’s fleet to last nine months, the company would remain cash-positive even if that were the case and could survive for longer than that by seeking additional funding.

Among the steps it is taking, easyJet is in talks over the sale and leaseback of some planes to leasing companies, with expected proceeds of up to 550 million pounds ($687 million).

“Overall, the company has presented a very credible response to the crisis,” said Goodbody analyst Mark Simpson.

In addition to the deferral of new orders and non-renewal of leases, easyJet said it now plans to sell six aircraft.

The airline, however, has faced calls from its founder and biggest shareholder, Stelios Haji-Ioannou, to terminate its 4.5 billion pound order with Airbus for 107 new jets.

He escalated his row with management on Thursday, issuing a statement saying he planned to call for the removal of Lundgren as well as chairman John Barton at forthcoming meetings. He said Lundgren should not send money to Airbus for planes while running an “aircraft parking lot”.

CASH PILE

Through various funding initiatives, easyJet expects to generate total additional liquidity of about 1.85 billion to 1.95 billion pounds, leading to a notional cash balance of about 3.3 billion pounds.

Given the level of continued market uncertainty, the company said it is not possible to provide guidance for the remainder of the 2020 financial year.

However, it said winter bookings are well ahead of those at the same stage last year, with Lundgren adding that he expects there to be pent-up demand for holidays as people emerge from lockdown.

But travel restrictions are likely to ease slowly and easyJet will have to be flexible, the CEO said. “I don’t think this is going to be a case of let’s just open everything up,” he added.

Measures under consideration include disinfecting aircraft and steps to ensure social distancing on planes.

“We will clearly look to have the middle seat empty as we start,” Lundgren said. “I think that is actually what the customers would like to see.”

EasyJet shares were up 2.2% at 616 pence at 1207 GMT, having lost more than 50% year to date.

($1 = 0.8007 pounds)

(Reporting by Sarah Young; Editing by Kate Holton and David Goodman)

Siemens Mobility Receives First Battery Powered Train Order

  • 20 Mireo Plus B battery-powered trains for Baden-Württemberg
  • Maintenance contract for 29.5 years
  • Delivery of trains by June 2023

Landesanstalt Schienenfahrzeuge Baden-Württemberg (SFBW) has ordered 20 Mireo Plus B trains from Siemens Mobility. The two-car electric trainsets with 120 seats can operate on rail routes with or without overhead power lines thanks to their battery hybrid drive, and are scheduled to operate in Network 8 of the Ortenau regional system. The contract also includes maintenance of the trains by Siemens Mobility for a period of just under 30 years. State Minister for Transport Winfried Hermann said: “This marks the first time battery-powered trains will be used in the state. With this innovative technology, the electrification of rail routes without continuous overhead power lines will also be possible.”

Delivery of the trains is scheduled to be completed by December 2023. The trains will be built at the Siemens Mobility factory in Krefeld, Germany. The KfW IPEX Bank is financing the trains for Nahverkehrsgesellschaft Baden-Württemberg (NVBW). The financing of €77 million has a term of 28 years.

“With this order, the state of Baden-Württemberg is investing in the future of mobility. Our battery-powered train Mireo Plus B makes climate-friendly, locally emission-free passenger transport possible, thus offering a sustainable alternative to the use of diesel-powered trains on non-electrified rail routes. We will guarantee the availability of the fleet with our maintenance of the trains over their entire lifecycle,” said Sabrina Soussan, CEO of Siemens Mobility.

“In the interest of sustainability, we’ve deliberately opted for a “lifecycle model’,” said Winfried Hermann, Minister for Transport in Baden-Württemberg. “We’re breaking new ground in converting to climate-friendly propulsion systems in local transport by introducing this new technology and want to commit the company to this technology through contractual arrangements. Siemens is also responsible for energy consumption and energy costs over the entire contract period of 29.5 years. In this respect, we are entering new territory regarding public transport tenders in the state of Baden-Württemberg.”

The Mireo Plus B has a range of around 80 kilometers in battery operation under real conditions. The batteries can be charged via the overhead line while operating along electrified sections and by recuperating the train’s braking energy. The battery system is mounted underfloor and is installed in two battery containers. Lithium-ion batteries with a long service life are used in the system.

The Network 8 Ortenau comprises the routes:

  • Offenburg –Freudenstadt/Hornberg
  • Offenburg – Bad Griesbach
  • Offenburg – Achern
  • Achern – Ottenhöfen and
  • Biberach (Baden) – Oberharmersbach-Riersbach

Alstom Hydrogen Train Coradia iLint Completes Successful Tests in the Netherlands

The world’s first hydrogen fuel cell passenger train takes its first steps abroad after commercial success in Germany.

  • The Netherlands: second country in Europe to test the hydrogen train 
  • Tests carried out with green hydrogen
  • Performance equivalent to classic DMU regional trains
  • 41 hydrogen trains already on order in Germany

Alstom has performed ten days of tests of the Coradia iLint hydrogen fuel cell train on the 65 kilometres of line between Groningen and Leeuwarden in the north of the Netherlands. The tests follow 18 successful months of passenger service on the Buxtehude–Bremervörde–Bremerhaven–Cuxhaven line in Germany, where total of 41 Coradia iLint have already been ordered. The latest tests make the Netherlands the second country in Europe where the train has proven itself a unique emissions-free solution for non-electrified lines.

Last October, Alstom and the Province of Groningen, local operator Arriva, the Dutch railway infrastructure manager ProRail and the energy company Engie signed a pilot project agreement to test the Coradia iLint, the world’s first passenger train powered by hydrogen fuel cells, in the Netherlands. DEKRA, an independent testing inspection and certification company, has been appointed test leader. This series of tests is being performed at night at up to 140 km/h without passengers. For the purpose of the tests, a mobile filling station has been erected by Engie for refuelling the Coradia iLint with completely green – sustainably produced – hydrogen. 

The tests in the Netherlands demonstrate how our hydrogen train is mature in terms of availability and reliability, providing the same performance as traditional regional trains, but with the benefit of low noise and zero emissions. It is also easy to integrate in an existing fleet and is compliant with all safety regulations. The Coradia iLint hydrogen train is a reliable emission-free train ready to help transport us to a carbon-neutral Europe,” said Bernard Belvaux, Managing Director, Alstom Benelux.  

The Coradia iLint is the world’s first regional passenger train to enter service equipped with fuel cells to convert hydrogen and oxygen into electricity, thus eliminating pollutant emissions related to propulsion. The completely train is quiet, and its only emission is water. Purpose-built for use on non-electrified lines, it provides clean, sustainable traction with no sacrifice in performance. It has a range of approximately 1000 kilometres – the same as equivalent-size diesel multiple units. The train is developed and produced by the Alstom teams in Salzgitter, Germany and Tarbes, France.

The Dutch railway network has approximatively 1,000 kilometres of non-electrified line on which around 100 diesel trains currently operate daily. 

On Saturday 7th of March, the station of Groningen will welcome the press and public to discover the Coradia iLint at the platform between 12:00 to 16:00.

Alstom to Supply 17 Additional Citadis Trams to Strasbourg

Alstom will supply 17 additional Citadis trams to the Strasbourg Transport Company (CTS) and the Eurometropole of Strasbourg for the sum of €52 million. This order will complete the fleet of 63 trams delivered by Alstom between 2003 and 2019, and confirms a partnership of almost 20 years between Alstom and CTS. The last option exercise, signed in March 2016, was for 10 Citadis trams for the extensions of lines A and D. 

These 17 new trams will reinforce the existing lines, including line D, which serves the city centre of Kehl in Germany. The Citadis tramway is the first to cross a border in France and is approved according to the BOStrab, the German federal decree on the construction and operation of trams in Germany.

“With this new order, CTS is the French customer that will own one of the largest Citadis tram fleets with a total of 80 trainsets ordered. We are very proud to be continuing this partnership initiated in 2003, proving that the Citadis range meets the evolving needs of our customers,” says Jean-Baptiste Eyméoud, Managing Director of Alstom in France. 

The Citadis trams for Strasbourg are 45 metres long and have a capacity of 288 passengers. They are fitted with LED lighting and all-glass doors to enhance comfort and safety for passengers. Complying with the latest standards, the trams are equipped with double doors accessible to PRMs (People with Reduced Mobility), wider seats and areas reserved for wheelchair and stroller users. 

These trams will be designed and manufactured mainly in France: La Rochelle (design and assembly of the trainsets), Le Creusot (bogies for the intermediate modules), Tarbes (components of the traction chain), Villeurbanne (electronic equipment) and Saint-Ouen (design). The bogies situated under the driver cabins will be manufactured at Alstom’s site in Salzgitter, Germany. 

In total, more than 2,600 Citadis trams have been sold to more than 50 cities in 20 countries.

ANA HOLDINGS Commits to Adding up to 20 Boeing 787 Dreamliner Jets

  • Japan’s five-star carrier plans to acquire 11 787-10 airplanes, four 787-9s jet and five options
  • Deal marks ANA’s sixth Dreamliner purchase; order book to eclipse 100 airplanes once options are exercised
  • ANA plans to use the largest, most efficient Dreamliner to replace certain domestic 777 models

Boeing [NYSE:BA] and ANA HOLDINGS INC. announced the Japanese airline group today decided to acquire up to 20 more 787 Dreamliner airplanes. The agreement with Boeing includes 11 787-10s, one 787-9 and options for five 787-9s valued at more than $5 billion at list prices. The airline also plans to acquire three new 787-9 airplanes from Atlantis Aviation Corporation.

Once the agreements are finalized, it will be ANA’s sixth order for the ultra-efficient and passenger-pleasing Dreamliner and bring their overall 787 order book to more than 100 airplanes.

“Boeing’s 787s have served ANA with distinction, and we are proud to expand our fleet by adding more of these technologically-advanced aircraft,” said Yutaka Ito, Executive Vice President of ANA and ANA HD. “These planes represent a significant step forward for ANA as we work to make our entire fleet even more eco-friendly and further reduce noise output.”

With this order, the airline will add 11 of the largest and most fuel-efficient Dreamliner models, the 787-10 to its world-class fleet. Powered by a suite of new technologies and a revolutionary design, the 787-10 set a new benchmark for fuel efficiency and operating economics when it entered service in 2018. The airplane allows operators to achieve 25 percent better fuel efficiency per seat compared to older airplanes in its class.

ANA sees the 787-10 as the perfect airplane to replace previous domestic 777 models that are slated for retirement.

“Introducing the 787-10 on our domestic routes will help ANA Group maintain its leadership role and improve our ability to operate as a responsible corporate citizen,” Yutaka Ito said.

ANA became the global launch customer of the 787 Dreamliner when it placed its initial order in 2004. Since then, like half of all Dreamliner operators, the Japanese carrier has placed follow-on orders. However, ANA is in a class by itself as the world’s biggest 787 operator with 71 airplanes in its fleet and 12 more to be delivered prior to the latest agreement. The new deal will bring the 11 additional 787-10 airplanes, one 787-9 and options for five more 787-9 jets.

ANA is also in the launch customer group for Boeing’s new 777X.

“ANA has grown into one of the leading airline groups in Asia by continually raising the bar for customer satisfaction and investing in the most technologically-advanced and capable fleet. We are truly honored that ANA HD is coming back to order more 787 planes with plans to boost their Dreamliner fleet to more than 100 jets,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing, The Boeing Company. “We are confident that the unique capabilities of the 787-10 will continue to safely serve its passengers with best-in-class comfort and reliability.”

The 787 Dreamliner is playing an important role in reducing carbon emissions around the world. Since the first 787 entered commercial service in 2011, the Dreamliner family has saved more than 48 billion pounds of fuel. In addition, the 787 fleet’s noise footprint is 60 percent smaller than those of the airplanes it replaces.

ANA HD’s new 787 jets will be powered by GE’s GEnx-1B engines. The new engines will contribute to the 25 percent improved fuel efficiency per seat of the 787-10.

Frontier Airlines Adds 2 Nonstop Routes from Phoenix: Los Angeles and San Jose

Low-fare carrier Frontier Airlines today announces its further expansion at Phoenix Sky Harbor International Airport (PHX) with the only ultra-low-cost, nonstop flights to two California airports: Los Angeles International Airport (LAX) and San Jose Airport (SJC). To celebrate this new service, Frontier is offering fares as low as $29*, which are available now at FlyFrontier.com.

“We see tremendous growth opportunities for low-cost air travel in Phoenix and today’s expansion announcement provides significantly lower fares to key California markets,” said Daniel Shurz, senior vice president of commercial for Frontier Airlines. “Our new nonstop flights to Los Angeles and San Jose are an excellent complement to the 15 other routes we offer from Phoenix Sky Harbor. We’re proud to operate at one of the most awarded airports in the U.S. and look forward to continuing our exceptional relationship with the community.”

New routes from Phoenix Sky Harbor International Airport (PHX):

Service is seasonal and frequency and times are subject to change, so please check FlyFrontier.com for the most updated schedule.

“Frontier Airlines is an excellent partner at Sky Harbor and we greatly value the service they bring to our residents and visitors,” said Director of Aviation Services James E. Bennett.

Frontier is focused on more than low fares. The carrier offers customers the ability to customize travel to their needs and budget. For example, customers can purchase options a la carte or in one low-priced bundle called the WORKS. This bundle includes refundability, a carry-on bag, a checked bag, the best available seat, waived change fees, and priority boarding.

The airline’s frequent flier program, FRONTIER Miles, lets members enjoy many benefits as well as attain Elite status. Like the airline, FRONTIER Miles is family friendly, and the program makes it easy for families to enjoy the rewards together, including family pooling of miles. FRONTIER Milesis aptly named because you earn one mile for every mile flown – no funny formulas at Frontier. If a customer travels a little or a lot, they will find FRONTIER Miles rewarding.

Frontier operates over 95 A320 family aircraft and has the largest A320neo fleet in the U.S., delivering the highest level of noise reduction and fuel-efficiency, compared to previous models. The use of these aircraft, Frontier’s seating configuration, weight-saving tactics and baggage process have all contributed to the airline’s average of 39% fuel savings compared to other U.S. airlines (fuel savings is based on Frontier Airlines 2018 fuel consumption per seat-mile compared to the weighted average of major U.S. airlines), which makes Frontier the most fuel-efficient U.S. airline. More information about Frontier’s green commitments are available at FlyFrontier.com/Green.

With over 150 new Airbus planes on order, Frontier will continue to grow to deliver on the mission of providing affordable travel across America. Frontier’s young fleet also ensures that the company keeps fares low and that customers will enjoy a pleasant and reliable experience flying with the airline.

Embraer Delivers 198 Total Jets in 2019

Embraer (ERJ) delivered a total of 198 jets in 2019, of which 89 were commercial aircraft and 109 were executive jets (62 light and 47 large), which represents an increase of 9% compared to 2018, when the Company delivered a total of 181 jets. The deliveries were within the outlook ranges for 2019 of 85 to 95 for the commercial aviation market and of 90 to 110 for the business aviation market. In the fourth quarter of 2019, Embraer delivered 81 jets, being 35 commercial aircraft and 46 executive jets (20 light and 26 large). As of December 31, the firm order backlog totaled USD 16.8 billion. See details below:

Deliveries by Segment4Q192019
Commercial Aviation3589
EMBRAER 175 (E175)2267
EMBRAER 190 (E190)25
EMBRAER 195 (E195)13
EMBRAER 190-E2 (E190-E2)47
EMBRAER 195-E2 (E195-E2)67
Executive Aviation46109
Phenom 100411
Phenom 3001651
Light Jets2062
Legacy 65035
Legacy 4501015
Legacy 500511
Praetor 50033
Praetor 600513
Large Jets2647
TOTAL81198

In the fourth quarter of 2019, Embraer delivered the first Praetor 500 business jet to Flexjet, a global leader in private jet travel, just over one year after its announcement at the 2018 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE).

Embraer also announced the expansion of its Executive Jets Service Center at Fort Lauderdale-Hollywood International Airport (KFLL), expanding its service capacity through a lease agreement with Jetscape Services for a dedicated hangar. Embraer’s presence in Florida is strategic for its Executive Jets customers throughout the Southern United States, the Caribbean and Central America as well as for those whose travel frequently brings them through South Florida.

In the same period, Embraer delivered the second KC-390 Millennium to the Brazilian Air Force and the contract with the Portuguese Government for a firm order for five KC-390 airlifters was included in Embraer’s backlog in the fourth quarter of 2019.

At the Dubai Air Show, Embraer announced the name and designation of its multi-mission medium aircraft, the Embraer C-390 Millennium. The new designation reflects increased flexibility and value for operators that look for a transport/cargo aircraft to perform airlift and air mobility missions, among others. In addition, Embraer and Boeing announced that the joint venture to promote and develop new markets for the C-390 Millennium multi-mission airlift and air mobility aircraft will be called Boeing Embraer – Defense. The organization will only be operational after the companies’ joint venture receives regulatory approvals and meets closing conditions.

Also during the event in Dubai, Embraer announced two contracts for commercial aircraft: a contract with Air Peace for three additional E195-E2s, confirming purchase rights from the original contract and a firm order for three E190 jets with CIAF Leasing.

Embraer welcomed three new E2 operators. Helvetic Airways, from Switzerland, and Air Kiribati, national airline of the Republic of Kiribati, received its first E190-E2 jets, while Binter, of Spain, received its first E195-E2. Embraer also signed firm orders with SkyWest, for 20 E175 that will be operated by American Airlines, and with Congo Airways for two E175 aircraft, with purchase rights for a further two.

Alstom to Equip Another 19 ICE High-Speed Trains with ETCS

Alstom has obtained an order by Deutsche Bahn AG (DB) to retrofit 19 additional ICE1 high-speed trains with the newest ETCS signalling standard. The retrofitting work, worth more than €10 million, is scheduled to be completed by September 2021. 

The project is a follow-up contract for the ICE 1, of which Alstom had already retrofitted 39 trains for the commissioning of the VDE 8 high-speed line connecting Berlin and Munich. Since the opening of the high-speed line passenger numbers have more than doubled. 

‘We are delighted that Deutsche Bahn has again passed a vote of confidence in Alstom for this complex retrofit. This is a further step towards making Germany fit for digital rail guarantees Deutsche Bahn a uniform and flexibly deployable ICE fleet’, says Dr. Joerg Nikutta, Alstom Managing Director Germany & Austria.

The contract includes development, design and manufacture of the digital signalling system ETCS Level 2 Baseline 3 as well as its installation, connection to existing train control systems and commissioning. The new system will ensure a continuous communication between the vehicle and the track

The retrofitting work will be implemented in cooperation with several Alstom sites: Berlin, Braunschweig (installation design and project management), Charleroi, Belgium (product development, validation and assembly for ETCS) and Lyon/Villeurbanne, France (manufacture of components). The conversion and recommissioning of the vehicles will be carried out at the ICE-plant in Hamburg-Eidelstedt.

With 15 years of experience putting into service ERTMS Level 2 digital signalling solutions, Alstom is a global pioneer in its development and implementation. With projects in 30 countries, Alstom has installed nearly 40% of the Trackside ERTMS Level 2 equipment in service in Europe and equipped over 8,000 trains of 200 different types with its Atlas On-board ERTMS solution. Atlas is a scalable solution that can be adapted to all types of traffic and operational needs: passengers and freight, high-speed or suburban.

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