Delta and Airbus announced Tuesday that Delta has agreed to expand its Airbus A220 order book by five aircraft to a total of 95.
Delta now expects to take delivery of 45 A220-100s and 50 A220-300s during the next four years, with the first -300 variant expected in 2020 coming from Airbus’s Mobile, Alabama final assembly line.
This week, Delta began flying the amenity-rich A220 from its Seattle hub, and will offer as many as 74 daily departures from 10 airports this summer.
In a separate arrangement, Airbus and Delta have signed a non-binding memorandum of understanding for Delta TechOps to provide A220 component repair and material services for Airbus’ A220 Flight Hour Services maintenance-by-the-hour program. This strategic partnership will allow Airbus to further enhance its successful Flight Hour Services program for the A220 by building on Delta Tech Ops’ proven component repair and management capabilities and on Airbus’ expertise in maintenance engineering, inventory management and innovative services solutions.
As the largest aviation maintenance group in North America, Delta TechOps highly skilled workforce of over 10,000 technicians, engineers and other support employees provide full-service maintenance to more than 850 Delta aircraft and their engines as well as maintenance services to more than 150 other operators, cargo operators and the Military & Government, through the airline’s MRO business.
The two airlines have jointly transported more than 14.4 million passengers since the Joint Cooperation Agreement launched.
Highlights include introducing eight new routes and two new joint destinations in Mexico, strengthening the network’s power in the transborder market.
Airlines have eliminated 80% percent of the differences in service and standardized processes to create a seamless travel experience.
Since Delta Air Lines and Aeromexico departed together on a journey to pioneer the first transborder airline alliance between the U.S. and Mexico, more than 14.4 million passengers have benefitted from the carriers’ integration during the last two years.
Today, Delta and Aeromexico jointly offer more than 1,100 weekly flights on 64 routes between 11 cities in Mexico and 33 in the U.S. The Joint Cooperation Agreement has launched eight new routes and two new joint destinations in Mexico, and allowed terminal co-location in 12 airports in the U.S., 10 of which are Delta hubs, and three Aeromexico hubs in Mexico.
As seamless as checking in at a Delta terminal and boarding an Aeromexico plane, “our goal is creating a familiar travel experience with standards that are common across Delta and Aeromexico. This partnership and the integration of both airlines allow us to offer a more powerful network, more benefits and standard policies, which result in a seamless service,” said Nicolas Ferri, Delta’s Vice President— Latin America and Alliances Americas.
True to its word, the JCA has so far eliminated 80% of the differences in services and has standardized many processes, such as purchasing tickets online or benefitting from loyalty programs. On board, customers will find uniformity on Delta and Aeromexico cabins, seat selection and checked and carry-on baggage policies; parallel access to Gogo’s WiFi portal and free text messaging; as well as having Spanish-speaking crew members on all transborder flights.
“Although the integration of commercial processes, products, airports and sales teams has been a great challenge, communicating with a cohesive voice has facilitated that assimilation. While Delta and Aeromexico have distinct and unique looks, we respect each other and share the same vision: to provide the best of each to our customers,” said Paul Verhagen, Aeromexico’s Senior Vice President – International Sales.
Providing the best isn’t limited to the airport experience. From sponsoring the Mexican National Soccer Team to the Latin GRAMMY Acoustic Sessions in Miami, L.A. and Mexico City, Delta and Aeromexico are committed to supporting the communities they serve. The airlines aim to foster unity, diversity and to uphold corporate values through their sponsorships of a variety of sporting and cultural events in both Mexico and the United States.
“Such a historic alliance between two iconic airlines is about making travel between the two carriers easier for customers. By working together, we have shared and applied best practices and business solutions, bringing our individual strengths into the partnership,” added Ferri.
Delta and Aeromexico sales professionals have formed a fully integrated sales team dedicated to promoting both operators in the U.S. and Mexican markets. Routes have been increasingly added throughout the two years under the JCA, strengthening the power of the network in the transborder market.
Customers from Atlanta can enjoy nonstop access to nine cities in Mexico including Mexico City, Guadalajara and Monterrey. The JCA also operates direct flights from New York, Detroit, Minneapolis, Salt Lake City, Seattle, and Los Angeles to multiple business and leisure points in Mexico.
Connectivity is crucial to driving business and boosting the economy of both countries, while offering customers the possibility of discovering new experiences through Delta and Aeromexico’s distinctive service in the coming years.
Embraer delivered 11 commercial jets and 11 executive jets (8 light / 3 large) in 1Q19.
The Company’s firm order backlog at the end of 1Q19 was US$ 16 billion considering all deliveries as well as firm orders obtained during the period.
EBIT and EBITDA in 1Q19 were US$ (15.2) million and US$ 30.9 million, respectively, yielding EBIT margin of -1.8% and EBITDA margin of 3.8%. This compares to EBIT of US$ (5.3) million (-0.6% EBIT margin) and EBITDA of US$ 57.8 million (6.0% EBITDA margin) in 1Q18.
1Q19 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (42.5) million and US$ (0.23), respectively. Adjusted net loss (excluding deferred income tax and social contribution) for 1Q19 was US$ (61.8) million, with Adjusted loss per ADS of US$ (0.34). Embraer reported adjusted net loss in 1Q18 of US$ (60.5) million, for an adjusted loss per ADS of US$ (0.33) in the quarter.
Embraer reported Free cash flow of US$ (665.3) million in 1Q19, compared to free cash flow of US$ (435.2) million reported in 1Q18. The Company finished the quarter with total cash of US$ 2,483.4 million and total debt of US$ 3,587.1 million, yielding a net debt position of US$ 1,103.7 million versus net debt of US$ 439.9 million at the end of 2018.
The Company’s shareholders approved the proposed strategic partnership between Boeing and Embraer during an Extraordinary General Shareholders’ Meeting on February 26, 2019. At the meeting, 96.8% of all valid votes were in favor of the transaction, with participation of roughly 67% of all outstanding shares.
The closing of the transaction between Boeing and Embraer remains subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, expected by the end of 2019.
The Company reaffirms all aspects of its 2019 financial and deliveries guidance.
With the inaugural EL AL flight between Tel Aviv and San Francisco, EL AL and Alaska Airlines signed an expanded global partnership allowing their members to more easily connect and earn miles.
TEL AVIV, Israel and SEATTLE, May 13, 2019 /PRNewswire/ — EL AL Israel Airlines and Alaska Airlines today expanded their commercial relationship to include a reciprocal frequent flyer agreement. The agreement was signed by the CEOs of each airline at a ceremony soon after the arrival of the first EL AL flight from Tel Aviv to San Francisco and was attended by San Francisco Bay Area dignitaries and civic leaders. This agreement is in addition to the codeshare agreement that recently came into effect between the airlines allowing EL AL to place its “LY” code on various Alaska Airlines “AS” flights in the U.S.
The codeshare agreement which has been available for sale as of April 28th for flights as of May 5th includes flights from Newark, Los Angeles and now San Francisco onto a host of Alaska Airlines flights. From San Francisco, EL AL will place its code on flights to Seattle; San Diego; Portland, Oregon; Honolulu; Los Angeles; Palm Springs, California; Albuquerque, New Mexico; Austin, Texas; Dallas (DAL); Santa Ana, California, Everett, Washington, Kansas City, Missouri; Salt Lake City; Kona, Hawaii and Las Vegas. Upon regulatory approval, will also include flights to various points in Mexico.
With the EL AL and Alaska Airlines partnership, customers will be able to continue their journey to and from North America and Israel with connections on both airlines, in either direction. Both airlines will offer the opportunity for their members to earn miles while flying with the partner airline. Base miles flown on EL AL will also count toward elite status in Alaska’s Mileage Plan program. Additionally, EL AL travelers will be able to redeem their EL AL Matmid miles to book on Alaska flights in the future.
“This is truly a historic day for EL AL,” said EL AL CEO Gonen Usishkin. “Aside from the fact that EL AL is linking the two high-tech centers with the new three times weekly flights, we are providing the full options for our customers with the codeshare and frequent flyer agreements with Alaska Airlines,” he emphasized. “Alaska Airlines was instrumental in helping bring Jews to Israel in the early years of the state, helping to build our country and now as we celebrate 70 years of those historic flights, continue to be a key player along with EL AL in building the bridges between America and Israel.”
“Alaska Airlines and EL AL will now offer more opportunities than ever before for travelers to fly nonstop between the West Coast and Tel Aviv. Through our partnership, both EL AL and Alaska Airlines offer frequent flyer benefits to our guests while sharing the genuine, caring service that is at the heart of both of our airlines,” said Brad Tilden, CEO of Alaska Airlines. Alaska Airlines offers an option to go global differently with hand-picked partners, and Mileage Plan miles can be used at home with Alaska or with Alaska Global Partners. With the EL AL partnership, Alaska Airlines’ international connectivity out of SFO is stronger than ever; by June 2019, Alaska’s Global Partners will offer more than 80 flights per week out of San Francisco.
The EL AL flights will operate three times weekly flying a state-of-the-art 787 Dreamliner, offering Business, Premium and Economy service. The flights from Tel Aviv will depart on Monday, Wednesday and Friday at 0105 and arrive in San Francisco on the same day at 0600 for a flight time just under 15 hours. The flights from San Francisco to Tel Aviv will operate on Monday and Wednesday departing at 2000 for arrival the next day at 1940 and on Saturday night with a 2245 departure arriving in Tel Aviv at 2225 the next day for a flying time of just over 13 and a half hours.
About EL AL Israel Airlines
EL AL Israel Airlines, Israel’s national airline, established in 1948, offers more nonstop flights than any other airline to/from Israel. EL AL currently flies to 36 destinations from Israel, serves hundreds of other destinations throughout the world via codeshare, and interline partnerships. EL AL offers a full Boeing fleet and began renewing its fleet as of September 2017 with the arrival of the first of its sixteen 787 Dreamliner aircraft. Soon to be new routes will include Las Vegas, Chicago and Orlando (summer seasonal flights only) in the USA. In 2017 EL AL flew over 5.6 million passengers. EL AL embodies Israel’s values of innovation and caring and is known for its genuine Israeli hospitality. Learn more about EL AL at: www.elal.com.
About Alaska Airlines
Alaska Airlines and its regional partners fly 44 million guests a year to more than 115 destinations with an average of 1,200 daily flights across the United States and to Mexico, Canada and Costa Rica. With Alaska and Alaska Global Partners, guests can earn and redeem miles on flights to more than 900 destinations worldwide. Alaska Airlines ranked “Highest in Customer Satisfaction Among Traditional Carriers in North America” in the J.D. Power North America Airline Satisfaction Study for 11 consecutive years from 2008 to 2018. Learn about Alaska’s award-winning service at newsroom.alaskaair.com and blog.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (ALK).
Despite repeated claims from all sides that China Southern has no interest in joining the Oneworld alliance, American Airlines and Asia’s largest carrier are moving forward with a frequent flyer partnership. The new arrangement announced Wednesday will allow American’s AAdvantage and China Southern’s Sky Pearl Club members the ability to earn and redeem miles on each other’s flights.
Mileage earning for passengers will go into effect March 21, and online availability is planned for later this year. In the meantime, phone reservations agents at American are already reporting the ability to book China Southern flights through Sabre, its booking system. An earn chart, which shows how China Southern fares will earn miles in American’s loyalty program, has also been posted to American’s site.
American and China Southern’s partnership comes at a time in which Oneworld has been cool on formally pulling the Asian carrier fully into the alliance — though it’s not clear which side the hesitation is coming from. At Oneworld’s 20th anniversary in February, Ron Gurney, CEO of Oneworld shared that the alliance had “no plans” to add the carrier in full. Instead, he suggested that China Southern might join Oneworld as a Connect partner, a new type of “alliance light” that allows passengers to connect onto partners and still earn benefits.
The relationship announced between American and China Southern on Wednesday is more thorough than that. In addition to the ability to earn and spend miles reciprocally, loyalty members can book flights directly through the other carrier’s website and still reap benefits. In other words, the relationship is almost like having an alliance partner without having China Southern in the alliance.
To be clear, many expected some sort of deeper relationship to bear fruit after American bought a stake in China Southern in 2017. Only a year after that investment, China Southern bowed out of the Skyteam alliance, leading many to speculate that it planned to join Oneworld. Ever since Gurney’s comments and the big push around Oneworld Connect, however, that enthusiasm seems to have faded.
That doesn’t mean that China Southern may not eventually end up joining Oneworld. Both airlines and alliances have famously been coy about when new members are coming onboard and China Southern will need to tread lightly in the back yard of Cathay Pacific, another major Oneworld carrier based out of Hong Kong. At the very least, AAdvantage members anxious to fly deeper into China will now get minimal frequent flyer benefits. Other Oneworld passengers will have to wait.
Paulo Cesar de Souza e Silva concludes his tenure at the end of April and will support the transition process of the company as Senior Advisor of the Board of Directors.
São Paulo, Brazil, March 18, 2019 – Embraer, following shareholder approval of the transaction with Boeing, announces that the current President and CEO of the company, Paulo Cesar de Souza e Silva, concludes a successful professional cycle with the company on April 22, 2019 which is the end of his current two year elected term.
“Paulo Cesar idealized the partnership with Boeing and led the negotiation process of the transaction that will bring Embraer and Brazil to a much more competitive and prominent level in the global aviation industry,” said Alexandre Silva, Chairman of the Board.
For 22 years at Embraer, Paulo Cesar came from the financial market to structure the company’s sales financing area. For six years he was President and CEO of Commercial Aviation and in 2013 launched the E2 Program, the medium-sized commercial jets considered today to be the most efficient in the market.
In 2016, Paulo Cesar became President and CEO of the Embraer Group, with a mission to make the company more efficient, competitive and better prepared to face structural changes in the global aviation market.
His administration established three key initiatives focused on value creation and the sustainability of the company. The first was the transaction with Boeing. The second was the creation of the Passion for Excellence program, a structural transformation project focused on reducing costs and increasing operational efficiency, generating significant annual recurring savings. The third was the creation of EmbraerX, responsible for disruptive innovation and the development of opportunities for the future, such as eVTOL (electric vertical take-off and landing vehicle), a project that will revolutionize urban transport in partnership with Uber.
“Without the support of the Board and Embraer’s 18,000 employees and colleagues, none of our achievements would have been possible”, noted Paulo Cesar. “We are challenged to remain at the forefront of engineering and operations. In Executive Aviation and Defense, and with the KC 390 joint venture with Boeing, we will expand our international competitiveness and everything indicates that we will have another 50 years of success ahead.” And he added: “I am sure that the new leadership of the company will find fertile ground ahead to expand and consolidate Embraer.”
Paulo Cesar was invited to be a Senior Advisor to the Board, with the task of facilitating the integration of the future President and CEO and advising the Board on the monitoring of assets and resources segregation, an integral part of the process of concluding the partnership with Boeing. As it was reported, 96.8% of Embraer’s shareholders approved an agreement with the North American company last February, which should be concluded after obtaining all approvals of the Regulatory and Competitive Agencies in Brazil and abroad.
Embraer also informs that the future President and CEO, to be elected for the next term, will be recruited externally and announced on or before the Ordinary General Assembly on April 22nd.
Follow us on Twitter: @Embraer
About Embraer
Embraer is a global company headquartered in Brazil with businesses in commercial and executive aviation, defense & security. The company designs, develops, manufactures and markets aircraft and systems, providing customer support and services. Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. About every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year.
Embraer is the leading manufacturer of commercial jets up to 150 seats. The company maintains industrial units, offices, service and parts distribution centers, among other activities, across the Americas, Africa, Asia and Europe.
Boeing CFO Greg Smith (left), Boeing CEO Dennis Muilenburg (center), and Embraer CEO Paulo Cesar Silva
-EBIT before special items(1) up 42% year-over-year to more than $1.0B on revenues of $16.2B for the year; EBIT increased 235% year-over-year to $1.0B
-2018 EBIT margin before special items(1) up 180 bps year-over-year to 6.3%; EBIT margin of 6.2%
-Full year free cash flow(1) of $182M, comprising proceeds from certain transactions, including $1.0B of cash generation in the fourth quarter; full year cash flows from operating activities of $597M
-Strong backlog growth at Business Aircraft and Transportation, with full year book-to-bill ratios(2) of 1.1 at both segments, and a consolidated backlog of $53.1B
-2019 guidance affirmed, clear path to achieve 2020 objectives
Bombardier (TSX: BBD.B) today reported its fourth quarter and full year 2018 results, highlighting solid margin growth, improved cash flows and continued progress executing its turnaround plan. The successful entry-into-service of the Global 7500 business jet in the fourth quarter also marked the completion of Bombardier’s heavy investment cycle, a key milestone in the company’s turnaround plan.
“2018 was a year of solid progress,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We continued to strengthen our business and set a strong foundation for growth. A foundation that includes a refreshed portfolio of best-in-class products, industry-leading backlogs and a more streamlined cost structure, all of which gives us a clear path to achieve our 2020 objectives.”
“As we begin the fourth year of our turnaround journey, Bombardier is a much stronger company,” continued Bellemare. “Our major program risks are retired, our heavy investment cycle is behind us and our franchises are well positioned for growth. For 2019, we are focused on flawless execution of our rail projects, the ramp-up of the Global 7500 and entry-into-service of the Global 5500 and Global 6500. We will also continue to drive financial performance through disciplined capital allocation and improved productivity and efficiency across the organization.”
Bombardier’s 2018 consolidated revenues reached $16.2 billion, reflecting 3% average year-over-year growth across Transportation, Business Aircraft and Aerostructures, excluding currency impact. Book-to-bill ratios(2) at Transportation and Business Aircraft both equaled 1.1 for the year, demonstrating strong demand for Bombardier’s products and services. Bombardier’s consolidated backlog reached $53.1 billion at the end of 2018, supporting future growth targets.
EBIT before special items continued to improve in 2018, increasing 42% year-over-year from $725 million to more than $1.0 billion, the top-end of the company’s guidance. The 6.3% EBIT margin before special items in 2018 represents a strong 330 bps increase since the start of the turnaround plan in 2015, well above the 5-6% range originally targeted. On a reported basis, EBIT increased 235% year-over-year to $1.0 billion, representing a margin of 6.2%.
Bombardier generated $1.0 billion of free cash flow in the fourth quarter of 2018. Full year free cash flow generation equaled $182 million, at the high end of the company’s revised guidance. This amount includes aggregate net proceeds of approximately $750 million from the sale of the Downsview property and the monetization of royalties associated with the previously announced CAE transaction. Cash flows from operating activities amounted to $597 million for the full year, and to $1.3 billion in the fourth quarter. Bombardier ended the year in a solid cash position, with $3.2 billion in cash and cash equivalents.
Selected results
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Business Aircraft achieved a historical milestone in December 2018 with the on plan service entry of the largest and longest range industry flagship Global 7500 aircraft. With a strong backlog and unsurpassed performance in its category, the Global 7500 is expected to be Business Aircraft’s key growth driver for years to come.
Revenues, EBIT before special items and deliveries were in line with guidance for 2018.
The segment achieved industry leading deliveries at 137 aircraft for 2018, including 42 Global, 83 Challenger and 12 Learjet.
Continued progress on the aftermarket strategy drove a 14.3% revenue increase year-over-year. Further expansion of our service network was also announced with the groundbreaking for a new centre in Miami, Florida to service U.S. and Latin American customers.
During the year, Business Aircraft unveiled the new Global 5500 and Global 6500 aircraft featuring an all-new Rolls-Royce engine and a newly optimized wing, increasing the aircraft range and fuel burn performance. With flight testing at advanced stages, these performance-leading aircraft are expected to enter into service at the end of 2019.
Commercial Aircraft
In 2018, Commercial Aircraft significantly reshaped its portfolio, focusing on the CRJ Series program and its aftermarket business, while also participating in the growth of the A220 through its partnership with Airbus:
The C Series Partnership (CSALP) with Airbus closed on July 1, 2018, bringing together two complementary product lines and the benefit of Airbus’ global reach, creating significant value potential for the newly rebranded A220.
A definitive agreement was reached with Longview Aircraft Company of Canada Limited for the sale of the Q Series aircraft program assets, including aftermarket operations and assets, for gross proceeds of approximately $300 million, on November 7, 2018. The transaction is expected to close by the second half of 2019, subject to customary closing conditions and regulatory approvals. Net proceeds for this transaction are expected at approximately $250 million net of fees, liabilities and normal closing adjustments.
Revenues and aircraft deliveries for 2018 were in line with guidance on the basis of the deconsolidation of CSALP results from Commercial Aircraft since July 1, 2018.
EBIT loss before special items(11) was $157 million reflecting for the most part losses on the C Series program in the first half of the year and the post-closing CSALP equity pickup. EBIT loss of $755 million includes a $616 million pre-tax accounting charge related to the closing of the CSALP transaction.
Commercial Aircraft continues to actively participate in the regional aircraft market with the established scope-compliant CRJ Series aircraft, with a focus on reducing costs and increasing volumes while optimizing the aftermarket for the large installed base in service around the world today. As the focus is to return the program to profitability, Bombardier also announced in 2018 it is exploring strategic options for the program.
Aerostructures and Engineering Services
Aerostructures and Engineering Services is positioned as a key supplier on early life cycle growth programs, including the new A220 and Global 7500 aircraft, expected to drive sustainable growth.
In 2018, the segment revenues grew 21% year-over-year to $2.0 billion in line with guidance.
Focused execution during the ramp-up of these programs and a one-time favorable item (approximately 50 bps) associated with the closing of the C Series Partnership have enabled to deliver 9.6% EBIT before special items, above its guidance. EBIT margin for the segment was 7.5%.
On February 6, 2019, the Corporation acquired the Global 7500 aircraft wing program operations and assets from Triumph Group Inc., for a nominal cash consideration. This transaction is expected to strengthen Bombardier’s position as a leading aerostructures manufacturer, to enable the company to leverage its extensive technical expertise to support the ramp-up of the Global 7500 aircraft, and to enhance its long-term success. Bombardier will continue to operate the production line and integrate the employees currently supporting the program at Triumph’s Red Oak, Texas facility.
On February 7, 2019, Paul Sislian was appointed President, Aerostructures and Engineering Services. Paul brings more than 20 years of aerospace and industrial experience, including serving most recently as Chief Operating Officer for Bombardier Business Aircraft.
Transportation
On February 7, 2019, Danny Di Perna was appointed President, Bombardier Transportation. Danny brings more than 30 years of industrial experience to this new role. He has a proven record of success leading complex industrial projects and organizations, driving operational efficiency and improving quality. Most recently, Danny led Bombardier’s Aerostructures and Engineering Services segment.
In 2018, Transportation recorded orders totaling $9.9 billion, fueled by a $3.3 billion order intake in the fourth quarter. Book-to-bill(2) reached 1.5 for the fourth quarter, resulting in a 1.1 ratio for the full year, continuing to position the segment for growth in revenues and profitability, supported by strong industry fundamentals.
Order intake for the year reflects project wins across geographies, with notable contract awards in Europe, led by SNCF’s repeat order in France, in Asia led by the Singapore Metro contract, and North America with Airport and Mass transit mobility solutions for Phoenix and Los Angeles.
The backlog reached $34.5 billion as at December 31, 2018. The backlog growth (excluding currency fluctuations) was supported by a stronger mix of platform projects and increasing signalling and service contract orders, consistent with Transportation’s strategy to increase speed-to-market; provide customers with end-to-end solutions; de-risk project execution while also growing margins.
Subsequent to the fourth quarter, in January 2019, Transportation was awarded a contract to supply 113 new generation passenger rail cars valued at $669 million with options for up to 886 additional cars, by the New Jersey Transit Corporation.
Financial performance for 2018 positions Transportation to reach 2019 guidance:
Revenues grew 4% year-over-year to $8.9 billion, in line with guidance, supported by a favourable currency impact in the first half of the year (2% growth excluding currency impact). Services and signalling grew to over 34% of revenues for the year, as increasing focus turns to integrated customer solutions.
EBIT before special items grew to $750 million for the year, representing an 8.4% margin (EBIT of $774 million, or 8.7% margin). Fourth quarter margins before special items were 7.7% (10.9% EBIT margin), as a result of contract estimate adjustments largely associated with a legacy project, resulting in full year margins before special items, slightly below the 8.5% guidance.
As discussed at the Company’s December 2018 Investor Day, Transportation continues to advance a number of legacy projects. The Company has plans in place and is taking actions to finalize system integration, obtain homologation and align delivery schedules with customers. Bombardier expects to substantially complete deliveries on most of these projects and significantly recover working capital through 2019.
As the portfolio continues to improve, Transportation anticipates growing EBIT margins before special items to approximately 9% for 2019, in line with guidance.
CDPQ Investment in BT Holdco
The Company also announced that Transportation’s results in 2018 did not reach the performance targets underlying Caisse de dépôt et placement du Québec’s (CDPQ) investment in BT Holdco. Accordingly, for the 12-month period starting on February 12, 2019, Bombardier’s percentage of ownership on conversion of CDPQ’s shares will decrease by 2.5%, returning to the original 70%; and the preference return entitlement rate on liquidation of its shares will increase from 7.5% to 9.5% for this period. Any dividends paid by BT Holdco to its shareholders during this period will be distributed on the basis of each shareholder’s percentage of ownership upon conversion, being 70% for Bombardier and 30% for CDPQ. These adjustments will become effective once the audited consolidated financial statements of BT Holdco are duly approved by its board of directors.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
Boeing announced a partnership with Aerion, a Reno, Nev.-based company pioneering next-generation supersonic aircraft.
February 05, 2019 in Technology, Innovation
Boeing announced a partnership with Aerion, a Reno, Nev.-based company pioneering next-generation supersonic aircraft.
As part of the agreement, Boeing made a significant investment in
Aerion to accelerate technology development and aircraft design, and
unlock supersonic air travel for new markets.
“Boeing is leading a mobility transformation that will safely and efficiently connect the world faster than ever before,” said Steve Nordlund, vice president and general manager of Boeing NeXt. “This is a strategic and disciplined leading-edge investment in further maturing supersonic technology. Through this partnership that combines Aerion’s supersonic expertise with Boeing’s global industrial scale and commercial aviation experience, we have the right team to build the future of sustainable supersonic flight.”
Boeing will provide engineering, manufacturing and flight test
resources, as well as strategic vertical content, to bring Aerion’s AS2
supersonic business jet to market.
The AS2 is designed to fly at speeds up to Mach 1.4 or approximately
1,000 miles (1,609 kilometers) per hour. With the ability to fly up to
70 percent faster than today’s business jets, the AS2 will save
approximately three hours on a transatlantic flight.
The aircraft is slated for first flight in 2023.
The AS2 is designed to fly at speeds up to Mach 1.4 or approximately 1,000 miles (1,609 kilometers) per hour. Aerion Corp.
(Reuters) – NetJets, the luxury plane unit of Warren Buffett’s Berkshire Hathaway Inc, has extended its contract with its pilots union by three years, avoiding the type of bitter labor dispute that it had with the union earlier this decade.
The tentative contract with the NetJets Association of Shared Aircraft Pilots, which represents 2,500 pilots, boosts pay, changes the compensation structure, and expires in 2026.
NetJets and the union said in a joint statement on Thursday that the accord followed six weeks of talks, which the Columbus, Ohio-based company began though the pilots’ 2015 contract wasn’t scheduled to expire until 2023.
More than 81 percent of the pilots voted last month in favor of the changes.
“The NJASAP Executive Board is exceedingly pleased with the outcome of this negotiation — an ambitious undertaking characterized by honesty, goodwill and a genuine commitment to continuing collaboration,” said union president, Pedro Leroux.
The contract was reported earlier by The Wall Street Journal. Berkshire did not immediately respond to a request for comment.
NetJets’ labor peace contrasts with more than two years of contentious relations with the union that ended in 2015, after Adam Johnson was installed as chief executive.
The union, then also led by Leroux, had accused NetJets of trying to slash jobs, obtain givebacks on health care and work rules, and bait pilots through bogus Twitter posts to conduct work slowdowns that could result in their being fired.
In contrast, Johnson said on Thursday the contract extension was “built on a foundation of trust and transparency.”
Berkshire employed more than 377,000 people at the end of 2017, and most are not unionized.
Buffett, who flies on NetJets planes, told shareholders at Berkshire’s 2015 annual meeting: “We have no anti-union agenda whatsoever, and we think we have sensational pilots.”
(Reporting by Jonathan Stempel in New York; Editing by Bernadette Baum)
In other NetJet news, Just in time for the winter ski season, we are excited to announce a partnership with Caldera House. Through this partnership, NetJets Owners can take advantage of exclusive benefits at Jackson Hole’s newest luxury hotel.
São Paulo and Chicago, January, 10, 2019 – Embraer [B3: EMBR3, NYSE: ERJ] and Boeing [NYSE: BA] have welcomed approval by Government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets.
The government’s approval comes after the two companies last month approved terms for the joint venture that will be made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 percent ownership stake in the new company and Embraer will hold the remaining 20 percent.
The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.
Once Embraer’s Board of Directors ratifies its prior approval, the two companies will then execute definitive transaction documents. The closing of the transaction will be subject to shareholder and regulatory approvals and customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.
Forward-Looking Information Is Subject to Risk and Uncertainty Certain statements in this release may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed terms of the transaction, the ability of the parties to satisfy the conditions to executing or closing the transaction and the timing thereof, and the benefits and synergies of the proposed transaction, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially from these forward-looking statements. As a result, these statements speak only as of the date they are made and neither party undertakes an obligation to update or revise any forward-looking statement, except as required by law. Specific factors that could cause actual results to differ materially from these forward-looking statements include the effect of global economic conditions, the ability of the parties to reach final agreement on a transaction, consummate such a transaction and realize anticipated synergies, and other important factors disclosed previously and from time to time in the filings of The Boeing Company and/or Embraer with the Securities and Exchange Commission.
