Tag: canada (Page 13 of 15)

Bombardier To Create Single Aviation Division

May 2, 2019 / WIL BALDWIN

MONTREAL (Reuters) – Canada’s Bombardier Inc said on Thursday it would unite its corporate and regional jet-making units into a single aviation division, as it continues focusing on its strongest businesses while shedding aerostructure facilities in Belfast and Morocco.

The announcement comes ahead of an annual general meeting later in the day, where the plane and train maker is expected to face questions from investors on whether its turnaround plan is still on track as its transportation unit grapples with delayed rail contracts.

Investors were rattled last week when Bombardier cut its first-quarter and full-year revenue targets for the transportation division, its largest unit, raising concerns over whether it will still meet its 2020 targets of boosting margins and generating $20 billion (£15 billion) in revenue.

Bombardier on Thursday posted first-quarter revenue and profit, in line with revised expectations issued a week ago, when it sharply cut estimates for full-year profit and revenue.

It had slashed its full-year transportation revenue forecast by almost 8 percent to about $8.75 billion.

The company said in a statement it was making progress toward completing five long-term rail projects that have been marred in some cases by delivery delays and production problems, but these would take a few more quarters for completion.

Bombardier’s planned sale of its Belfast wing and structure-making operation, the largest high-tech manufacturer in Northern Ireland which employs 3,600, stunned workers who called on the British government to retain jobs.

A separate facility which produces aeronautical-equipment in Morocco will also be sold.

Under Chief Executive Alain Bellemare, Bombardier has been selling off businesses, including the money-losing Q400 turboprop program, to focus on more profitable units like rail and corporate jets.

The rail division, which is expected to generate $10 billion next year, is crucial to Bombardier’s five-year turnaround plan, after heavy investment in aircraft production drove it to the brink of bankruptcy in 2015.

Besides creating a single aviation division headed by business aircraft president, David Coleal, the company said it will consolidate its five aerostructures businesses to focus on facilities in Montreal, Mexico and its newly acquired Global 7500 business jet wing operations in Texas.

Bombardier’s commercial aircraft president Fred Cromer will continue to lead efforts as the company weighs the future of its money-losing regional jet program.

Some investors have questioned Bombardier’s credibility in revising its financial guidance after a recent debt raise.

“The concern, particularly after the March debt raise, is whether management remains committed to its longer term 2020 guidance,” said Toronto-based AltaCorp analyst Capital Chris Murray by email.

“We expect that during that process, the company had reiterated prior 2019 guidance, which it changed last week, adding to concern on the part of bondholders.”

A Bombardier spokesman declined to comment and said management would address questions at the meeting.

Bombardier said it continues to expect full-year free cash flow to be breakeven, plus or minus $250 million, as Global 7500 aircraft and key transportation project deliveries are expected to accelerate in the second half of the year.

Adjusted core earnings rose by $1 million to $266 million in the three months to March 31, while revenue fell 13 percent to $3.52 billion.

(Reporting By Allison Lampert in Montreal. Additional reporting by Arathy Nair in Bengaluru and Fergal Smith in Toronto; Editing by Arun Koyyur and Bernadette Baum)

FILE PHOTO: Logo of Bombardier is seen at an office building in Zurich, Switzerland February 28, 2019. REUTERS/Arnd Wiegmann

ExpressJet Takes Delivery of First New Embraer E175 Aircraft

May 1, 2019 / WIL BALDWIN

ATLANTA, May 1, 2019 /PRNewswire/ — ExpressJet Airlines, a United Express carrier, this week took delivery of its first of 25 new Embraer E175 aircraft in a handover ceremony at the Embraer factory and delivery center in São José dos Campos, Brazil.

“The delivery of our first E175 represents a significant milestone in ExpressJet’s growth as an exclusive United Express carrier,” said Chairman and CEO Subodh Karnik. “I want to express my gratitude to our partners at Embraer and United Airlines as well as to the ExpressJet employees who have worked tirelessly over the past six months to make this day a reality.”

ExpressJet will take delivery of new E175’s through the remainder of 2019. Houston’s George Bush Intercontinental Airport (IAH) will serve as the airline’s first E175 base, with a second base location to be announced soon.

To support its E175 fleet growth, ExpressJet is hiring more than 600 new pilots in 2019. Pilots who sign on with ExpressJet can expect a quick selection process, an immediate class date, and to bid for flying within three months. Pilots interested in signing on with ExpressJet should apply at expressjet.com/pilots or airlineapps.com.

About ExpressJet Airlines
ExpressJet Airlines operates as United Express, on behalf of United Airlines (UAL), to serve more than 100 airports across the United States, Canada and Mexico, with over 3,300 weekly flights from bases in Chicago, Cleveland, Houston and Newark. ExpressJet’s fleet includes more than 110 Embraer ERJ145 and Bombardier CRJ200 aircraft, with 25 new Embraer E175’s being added in 2019. ExpressJet pilots enjoy top-tier pay and quality of life and a career path to United Airlines. ExpressJet is a subsidiary of ManaAir, LLC. For further information, contact 404-856-1199, corpcomm@expressjet.com.

Corporate Communications
Atlanta, Georgia
404-856-1199
corpcomm@expressjet.com

CN Rail Quarterly Profit Rises on Petroleum Shipments

April 29, 2019 / WIL BALDWIN

April 29 (Reuters) – Canadian National Railway Co reported a 6 percent rise in quarterly profit on Monday, as it transported higher volumes of petroleum and chemical products.

U.S. listed shares of the company rose 2.1 percent in after-hours trading.

The company’s net income rose to C$786 million, or C$1.08 per share, in the first quarter ended March 31, from C$741 million, or C$1 per share, a year earlier.

However, excluding one-time items, the railroad company earned C$1.17 per share, missing the analyst average estimate of C$1.18, according to IBES data from Refinitiv.

Canada’s largest railway operator said total carloads, the amount of freight loaded into cars, rose less than a percent.

Operating ratio, a closely watched productivity metric that measures expenses as a percentage of revenue, rose to 69.5 percent from 67.8 percent a year earlier. The lower the ratio, the more efficient a railroad.

($1 = C$1.34)

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Maju Samuel)

Close To 85,000 Travelers Took VIA Rail During Easter Weekend

April 29, 2019 / WIL BALDWIN

MONTRÉAL, April 25, 2019 – VIA Rail Canada (VIA Rail) continued its long multiple-quarter streak of increased revenue with a solid performance over Easter weekend. Passenger revenue was up 8,8% from 2018’s Easter break, giving the Corporation its best performance in 10 years.

Out of the approximately 85,000 travelers who chose VIA Rail to get around, more than half boarded trains within Ontario on routes that included Ottawa – Toronto, where 10 departures are offered each day in both directions. As for interprovincial travel, 29% of passengers took the train between Ontario and Quebec, particularly on the Montréal – Toronto and Montréal – Ottawa segments. In six days, VIA Rail trains covered a total distance of 28 million kilometres.

Of the busiest segments, the most notable increases over the long weekend were between Montréal and Québec City, Ottawa and Québec City, and Kitchener and Toronto, where passengers opted to take the train instead of their cars for a comfortable and worry-free springtime getaway with their friends or family.

“Our transformation plan continues to pay off as we bring Canadians towards a more sustainable future,” said Yves Desjardins-Siciliano, President and Chief Executive Officer of VIA Rail. “These results are a testament to the growing popularity of train travel and to our commitment to offering passengers a sensible, green alternative to road travel and an easy, sustainable and enjoyable travel experience. This is VIA Rail’s contribution to the future of Canada and of Canadian communities. I commend the sustained efforts and the remarkable devotion of our employees, who are largely the drivers of VIA Rail’s success.”

VIA Rail cross-Canada routes

Most popular route: Ottawa – Toronto
Most notable ridership increases on the Québec City – Windsor corridor: Montréal – Québec City (up 15%), Ottawa – Québec City (up 11.6%) and Kitchener – Toronto (up 9.8%)
24.7% revenue and 8.9% ridership increases on non-Corridor routes (Toronto – Vancouver and Montréal – Halifax long-distance trains, and regional routes)
Busiest day: Thursday, April 18

About VIA Rail Canada
As Canada’s national rail passenger service, VIA Rail (viarail.ca) and all its employees are mandated to provide safe, efficient and economical passenger transportation service, in both official languages of our country. VIA Rail operates intercity, regional and transcontinental trains linking over 400 communities across Canada and about 180 more communities through intermodal partnerships, and safely transports nearly 4.8 million passengers annually. The Corporation has been awarded five Safety Awards and three Environment Awards by the Railway Association of Canada since 2007. Visit the “About VIA Rail” section at https://www.viarail.ca/en/about-via-rail.

ATR Congratulates Silver Airways on 1st New ATR 42-600 Flight

April 24, 2019 / WIL BALDWIN

Toulouse, 23 April 2019 – Silver Airways yesterday launched its regularly scheduled flights aboard its new ATR -600 series aircraft. The first flight departed Fort Lauderdale-Hollywood International Airport at 10:40 a.m. and arrived at Key West International Airport at 11:55 am (EST).

Silver Airways, America’s leading independent regional airline, is reinventing the regional flying sector by being the first U.S. carrier to operate the technologically advanced, customer friendly ATR -600 series aircraft. Silver Airways has taken delivery of three new ATR 42-600 aircraft from NAC. The aircraft is specifically designed for short-haul markets, but with the same look, feel and customer amenities of larger jetliners. Yesterday marked the first time revenue passengers have flown on an ATR 42-600 operated by a U.S carrier.

The new aircraft are allowing Silver to expand its service in the South Eastern United States, the Bahamas and the Caribbean. By initially introducing the mission-specific ATR 42-600 aircraft, with seating for 46, Silver now has the unique ability to offer quicker direct flights to even more short and medium-haul leisure and business destinations in both domestic and nearby international markets.

“This is truly a great day for Silver Airways, ATR, Nordic Aviation Capital and our customers that would not have been possible without the hundreds of dedicated men and women of Silver Airways and Seaborne Airlines who have worked tirelessly over the past year to arrive at this historic moment,” said Silver Airways and Seaborne Airlines CEO Steve Rossum. “The new ATR 42-600 series aircraft will be transformational for Silver Airways and is ideal for our short-haul domestic and nearby international operations. The state-of-the art aircraft allows for a safe, highly reliable and efficient fleet operation and a superior overall experience for our guests.”

“We are proud to see the ATR -600 aircraft take flight in the U.S. and to introduce the most modern standards of passenger experience and regional aircraft with our valued partner Silver Airways,” said ATR Chief Executive Officer Stefano Bortoli. “We are grateful to our friends at Silver for being our U.S. launch customer; leading what we expect to be a new wave of eco-responsible and passenger-friendly regional travel and the return of the ATRs in the U.S.”

“Nordic Aviation Capital is proud of its relationship with Silver Airways, and we are particularly pleased to be part of their great success story,” said Martin Moller, Chairman of Nordic Aviation Capital. “The introduction of the ATR -600 series represents an essential milestone for them. We are congratulating Silver Airways on their service expansion and look forward to continuing our outstanding relationship with them for many years to come.”

Silver Airways has taken delivery of three of up to 50 new ATR 42-600 series aircraft, including an initial order for 20 ATR -600 aircraft split among the 46-seat ATR 42s and the 70-seat ATR 72s. As the world’s leading regional flying aircraft, the new ATRs will provide Silver’s passengers unparalleled experience and reliability and pilots the industry’s most advanced cockpit.

Silver intends to take delivery and begin operating five more ATR 42-600s in 2019, and subject to regulatory approval, the airline is planning to take delivery of at least three ATR 72-600s this year. All of the initial 20 aircraft are expected to be in service by 2020.

About Silver Airways
Silver Airways operates the most routes within Florida and between Florida and the Bahamas from its hubs in Fort Lauderdale, Orlando and Tampa, and also flies between Boston and Bar Harbor, Maine. Silver is the official airline of the Minor League Baseball team Daytona Tortugas and the Pensacola Blue Wahoos. In addition, Silver owns and cooperatively operates Seaborne Airlines with flights in Puerto Rico, the Virgin Islands and the Caribbean. Silver is a codeshare partner with United, JetBlue and Avianca, and has interline agreements with American, Delta, Air Canada, Alaska Airlines, All Nippon Airways, Bahamasair, Hahn Air, Azul and Emirates. Members of United’s MileagePlus® and JetBlue’s TrueBlue loyalty programs can also earn frequent flyer awards for travel throughout Silver’s network. Silver operates a fleet of highly-reliable Saab 340 aircraft and is also currently renewing and expanding its fleet with up to 50 new eco-friendly ATR -600s. Silver is honored to be the North American launch customer for the all new ATR -600 offering best-in-class quiet cabins, premium leather seats with more legroom, and spacious overhead bins that accommodate full-size, carry-on roller bags. Silver is owned by affiliates of Philadelphia-based investment firm Versa Capital Management, LLC. To learn more about Silver’s refined passenger experience, visit www.silverairways.com/destinations/atr42.

About ATR:

European turboprop manufacturer ATR is the world leader in the regional aviation market. ATR designs, manufactures and delivers aircraft, with its fleet encompassing some 200 airlines in nearly 100 countries. The ATR 42 and the ATR 72 are the best-selling aircraft in the below 90-seat category. With continuous improvement as a driving force, ATR produces cutting edge, comfortable and versatile turboprops that help airlines expand their horizons by creating more than 100 new routes every year. Compared with other turboprops, ATRs offer an advantage of 40% on fuel burn, 20% on trip cost and 10% on seat cost, whilst offering the lowest noise emissions. ATR is an equal partnership between leading aerospace firms Airbus and Leonardo and benefits from a large global customer support network allowing it to deliver innovative services and solutions to its clients and operators all over the world. For more information, please visit http://www.atr-aircraft.com. Follow us on Twitter – #ATRLeads

Air Canada Delays Launch of Seasonal Routes

April 2, 2019 / WIL BALDWIN

(Reuters) – Air Canada said on Tuesday it would delay the launch of certain seasonal flights this spring, as the carrier wrestles with the challenge of servicing routes previously flown by its grounded Boeing 737 MAX aircraft.

Canada’s largest carrier said it would put off the launch of at least five seasonal routes, including delaying its Vancouver to Boston service to June 16 from June 1.

Montreal-based Air Canada said a previously-announced halting of flights from two Eastern Canadian cities to London’s Heathrow airport would now remain suspended until May 31.

Air Canada, which previously suspended its 2019 financial forecasts, has removed 24 MAX jets from its flight schedule until July 1, following grounding of the Boeing jets after two recent crashes involving the model.

The global grounding, following the crash of an Ethiopian Airlines flight in March, has left U.S. and Canadian airlines with the logistical challenge of replacing the popular roughly 175-seat MAX on certain routes, at a time of rising passenger demand.

The Canadian carrier has been flying alternative planes or consolidating flights into larger jets that were previous flown more frequently on smaller aircraft.

Air Canada has also said it is speeding up the integration of four Airbus A321 aircraft it acquired in late December from Iceland’s cash-strapped WOW air.

Air Canada is “accommodating as best as they can,” said AltaCorp analyst Chris Murray. “At the same time, there is still some uncertainty about when the MAX grounding notice is going to be lifted.”

On Monday, Boeing said it planned to submit a proposed software enhancement package for the grounded 737 MAX in “the coming weeks” after the company had previously said it planned to deliver the fix for government approval by last week.

Anglo-German tour operator TUI said last week that its profit would fall by at least 200 million euros ($223.96 million) this year due to the cost of substituting for the MAX planes, along with loss of business and lower fuel efficiency from the replacement aircraft.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli and Bill Berkrot)

Bombardier Signs Firm Purchase Agreement for 6 Q400’s

April 1, 2019 / WIL BALDWIN

Toronto, March 29, 2019 – Bombardier Commercial Aircraft announced today that a customer, who has requested to remain unidentified at this time, has signed an order to acquire six new Q400 aircraft.

Based on the list price of the Q400 aircraft, the firm order is valued at approximately US$ 202 million.

“The Q400 aircraft offers the perfect balance of passenger comfort and operating economics while maintaining its unmatched range and speed advantage versus other turboprops,” said Fred Cromer, President, Bombardier Commercial Aircraft. “The demand for turboprop aircraft worldwide is tremendous and the Q Series aircraft are ideally positioned to meet the needs of regional airlines as they offer a unique ability to serve diverse and challenging environments. The Q400 offers the lowest seat costs amongst turboprops, with an enhanced passenger experience and a proven 99.5 per cent reliability.”

About Bombardier

With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, 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 US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bombardier Global 7500 Completes Longest Business Jet Flight in History

March 5, 2019 / WIL BALDWIN

– Global 7500 jet’s extraordinary 8,152 nm flight is the longest mission ever flown by a purpose-built business jet
– Flight also sets record for highest speed over longest distance in business aviation history, connecting Singapore to Tucson, AZ*
– Aircraft landed with fuel reserves well above NBAA requirements; 4,300 lb of remaining fuel represents nearly 1,5 hours of additional flight
– Aircraft provides the industry’s largest cabin and best cabin experience, perfectly suited for trans-oceanic journeys and an exceptionally smooth ride

Bombardier is proud to announce that its Global 7500 aircraft, has once again demonstrated its ability to go the distance by completing the longest range business jet flight in history**, successfully completing an 8,152-nautical-mile flight non-stop, pushing the boundaries of business travel.

The award-winning business jet departed from Singapore Changi Airport at 7:12 a.m. local time and arrived at Tucson International Airport at 8:19 a.m. local time, completing the long-range speed record flight for the city-pair.

“The Global 7500 aircraft was built to break all the records,” said David Coleal, President, Bombardier Business Aircraft. “It achieved the industry’s longest mission ever in business aviation after only two months in service. We’ve demonstrated its unequaled long-range and high speed capabilities, but also its ability to break records confidently with healthy fuel reserves remaining, once again, confirming its unsurpassed performance to customers.”

Since its entry-into-service, the Global 7500 jet has emphatically proven itself to be the highest-performing aircraft in the industry and this record showcases the real-world capabilities of this impressive aircraft. With a top speed of Mach 0.925, the aircraft has unquestionably shown its ability to fly even further than any other business jet with its advertised range of 7,700 nautical miles. The achievement of a flight that reaches 8,152 nautical miles clearly demonstrates that the aircraft is the only business jet with the high-performance capabilities required for long flights. Providing access to these demanding, long-range routes is an invaluable resource for customers.

Over the last two months, the Global 7500 jet has demonstrated exceptional performance and reliability, this first aircraft has completed more than 170 hours of flight around the world.

The Global 7500 aircraft offers spaciousness that is unique among business jets, with its award-winning interior featuring a full-size kitchen and four true living spaces. The Global 7500 aircraft also debuts Bombardier’s patented Nuage seat, which was meticulously designed for maximum comfort and will be exclusive to the new Global family of aircraft.

About Bombardier

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.

Story and images from http://www.bombardier.com

Phenom 300 is World’s Most Delivered Light Business Jet

February 22, 2019 / WIL BALDWIN

Melbourne, Florida, February 21, 2019 – Embraer Executive Jets delivered 53 Phenom 300 and Phenom 300E light jets in 2018, according to a report issued by the General Aviation Manufacturers Association (GAMA). This is the seventh consecutive year that the Phenom 300 achieves this mark, having accrued more than 490 deliveries since entering the market in December 2009.

“The Phenom 300’s continued success in the market is a reflection of our commitment to fascinate customers and deliver the ultimate customer experience in business aviation,” said Michael Amalfitano, President & CEO, Embraer Executive Jets. “The revolutionary interior design of the Phenom 300E adds even more value to this already popular model, reaffirming our commitment to continue to invest in true innovation.”

Originally launched in 2005, the Phenom 300 has sustained more than half of the light jet market share since 2012. The aircraft is in operation in more than 30 countries and has accumulated more than 780,000 flight hours. Embraer is continuously investing in the competitiveness of the Phenom 300 with enhancements to its comfort, technology and operational efficiency.

This image has an empty alt attribute; its file name is Phenom_300E_SN414_Interior-1.jpg

In October 2017, the new Phenom 300E was announced and entered service just five months later, in March 2018, and it is the only Phenom 300 model available to be acquired. The new aircraft is designated “E” for “Enhanced” in reference to its entirely redesigned cabin and the addition of the industry-leading nice® HD CMS/IFE (Cabin Management System/InFlight Entertainment) by Lufthansa Technik.

The Phenom 300E inherits the Embraer DNA Design, first introduced in its larger siblings, the Legacy 450 and Legacy 500 midsize jets. The application of this design in the Phenom 300E rendered an even more spacious cabin with more personalization options and greater ease of maintainability.

The revolutionary new interior design of the Phenom 300E starts with the all-new Embraer DNA seats, both designed and manufactured by Embraer. The new seats in the Phenom 300E feature an extendable headrest with bolsters, retractable armrest, broader backs for greater support, and extendable leg rests for improved ergonomics. The new table, side ledge, side wall, and valance design optimizes passenger mobility in the cabin with expanded aisle clearance and increased cabin space, rendering unmatched comfort and personalization in the light jet class.

The Phenom 300E features an industry-exclusive upper technology panel (upper tech panel) along the centerline of the aircraft’s ceiling, significantly improving passenger ergonomics. The innovative upper tech panel presents passengers with pertinent inflight information, while allowing for convenient interaction with cabin management controls, as well as the option of inflight entertainment with audio and video on demand via two slender swing-down seven-inch displays. The unit also offers an enhanced cabin lighting scheme, with a broad range of ambient mood selections, as well as integrates sleek, silent gaspers enhancing acoustic comfort. Bluetooth connectivity also allows passengers to view inflight information on their personal devices.

The Phenom 300E is also the fastest light jet, having established several speed records with the National Aeronautic Association and the Federation Aeronautique Internationale

About the Phenom 300E

The Phenom 300E performs among the top light jets, with a high speed cruise of 453 knots and a six-occupant range of 1,971 nautical miles (3,650 km) with NBAA IFR reserves. With the best climb and field performance in its class, the Phenom 300E costs less to operate and maintain than its peers. The aircraft is capable of flying at 45,000 feet (13,716 meters), powered by two Pratt & Whitney Canada PW535E engines with 3,360 pounds of thrust each.

The Phenom 300E offers a spacious cabin with the Embraer DNA Design and its baggage compartment is among the largest in its category. The largest windows in the class deliver abundant natural lighting in the cabin as well as in the private lavatory. The comfort of the seats, with recline and full movement capability, is enhanced by the best pressurization among light jets (6,600 ft. maximum cabin altitude). The Phenom 300E features distinct temperature zones for pilots and passengers, a wardrobe and refreshment center, voice and data communications options, and an entertainment system.

The pilot-friendly cockpit enables single-pilot operation and offers the advanced Prodigy Touch Flight Deck, based on the acclaimed Garmin 3000 avionics suite. The features it carries from a class above include single-point refueling, externally serviced lavatory, and an air stair.

Canada Bids for Mothballed German Prototype Drone

February 20, 2019 / WIL BALDWIN

BERLIN (Reuters) – The German Defence Ministry is evaluating a bid from Canada to buy a high-altitude surveillance drone prototype that has been parked at a German air base for years after the cancellation of the Euro Hawk programme in 2013.

A formal bid for the prototype aircraft, which was demilitarised by the United States in 2017, was received from Canada, a ministry spokesman said on Wednesday without providing further details. The Canadian embassy in Berlin had no immediate comment.

NATO was also considering a bid for the drone, but had not yet submitted it, according to sources familiar with the process.

A sale of the drone would end an embarrassing chapter that raised concerns about the German military’s procurement process and triggered the transfer of former Defence Minister Thomas de Maiziere to another cabinet post.

The German government told lawmakers last year that it had spent about 700 million euros ($793.5 million) on the Euro Hawk prototype built by U.S. arms maker Northrop Grumman and the ISIS surveillance system built by Airbus.

Berlin initiated plans in 2000 to buy five Euro Hawk drones based on Northrop’s Global Hawk unmanned system at a cost of about 1.2 billion euros but later cancelled the programme because of cost overruns and problems obtaining certification for use in civilian airspace in Germany.

It had only received the one prototype aircraft that is now being sold.

Berlin is now negotiating with Northrop to buy several MQ-4C Triton drones for delivery after 2025. Northrop last year said the process could take years to complete.

German opposition lawmaker Andrej Hunko, a member of the radical Left party, said the German government had declared the aircraft incapable of flight after the U.S. Air Force removed key systems.

“The airplane has salvage value at best,” he told Reuters.

“Any proceeds from the sale would be a drop in the bucket, compared with the huge amounts spent on the programme.”

For NATO, the drone could provide additional support to the fleet of five high-altitude unmanned Global Hawk planes it agreed to buy from Northrop in 2012 for $1.7 billion, along with transportable ground stations.

Industry officials said the Euro Hawk saga highlighted problems in German military procurement, noting that NATO’s sister aircraft regularly traverse German air space to conduct surveillance missions over the North Sea. They also have no blanket approval for use in German civilian airspace but use case-by-case permissions from air traffic authorities.

It was not immediately clear what steps would be needed to return the German Euro Hawk prototype to flight.

($1 = 0.8821 euros)

(Reporting by Andrea Shalal, Editing by Riham Alkousaa and David Goodman, William Maclean)

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