Tesla (TSLA) posted a surprise second-quarter profit last week on cost cutting and strong deliveries, offsetting the effects of its Covid-19 related factory shutdowns. The report may help the electric vehicle manufacturer gain inclusion into the S&P 500 index (^SPX).
Tesla announced earned net income of $104 million for the quarter, or $0.50 per share. This marks the first time the company has posted four straight quarterly profit, a benchmark for the company to be considered for inclusion in the highly coveted S&P 500.
This marks another major win for Chief Executive Elon Musk, whose quest to lead the global auto industry with Tesla, and the aerospace industry with SpaceX, has increasingly been making major leaps forward.
Musk said last Wednesday that the city of Austin, located in Travis County, would be the site of Tesla’s newest factory. The victory for Texas comes at a loss for Oklahoma, which also was seeking to have the factory land in Tulsa. The facility seeks to create as many as 5,000 new jobs. The County offered up to $65 million in tax rebates to entice the company, and plans to begin construction in the third quarter.
The additional plant is slated to produce Model 3 and Model Y vehicles for the Eastern half of the United States, as well as a potential new Tesla Semi truck and its Cybertruck pickup. Elon Musk has stated that his cars are not affordable enough yet for the average consumer, and he hopes to develop a plan to address that issue.
The company also needs to address its growing need for affordable battery cell production, and is looking to expand its partnerships with Panasonic Corp <PCRFY> and Contemporary Amperex Technology of China (CATL) <300750.SZ>.
Embraer (NYSE: ERJ) delivered a total of 17 jets in the second quarter of 2020, of which four were commercial aircraft and 13 were executive jets (nine light and four large). As of June 30, the firm order backlog totaled USD 15.4 billion. See details below:
In the second quarter of 2020, Embraer delivered fewer commercial and executive jets than in previous years in the second quarter, largely due to the Covid-19 pandemic that is affecting the world.
In the commercial aviation segment, Embraer delivered the 1,600th E-Jet, which was received by Helvetic Airways. In addition to receiving the commemorative aircraft, the Swiss airline also announced an upgrade of its firm order with Embraer, converting four of its E190-E2s in backlog to E195-E2s, the largest aircraft in the EJets-E2 family. Helvetic`s order is now for a total of eight E190-E2s, four E195-E2s, and with purchase rights for a further twelve EJets-E2.
Also, Congo Airways converted its firm order made in December 2019 for two E175 aircraft, with purchase rights for two more, into a firm order for two E190-E2 jets, with purchase rights for a further two aircraft.
In the Defense & Security segment, Embraer delivered the third C-390 Millennium multimission medium airlifter to the Brazilian Air Force (FAB). Similar to the first two units delivered in 2019 and the additional 25 which will be delivered to the FAB, this third unit is prepared to perform aerial refueling missions, with the KC-390 Millennium designation.
In the Executive Jets segment, Embraer announced the first delivery of its new, enhanced Phenom 300E to Texas law firm Dunham & Jones, Attorneys at Law, P.C.
Emirates will resume passenger services to Stockholm with weekly flights from 1 August, expanding its network in Europe to 22 cities, and connecting customers from Europe to the Middle East, Asia Pacific and Africa.
The restart of Stockholm flights means that all Emirates gateways in Scandinavia will have resumed services by August, with flights to Oslo resuming from 4 August and services to Copenhagen being in operation since June.
This will take the airline’s passenger network to 63 destinations in August, offering customers around the world more convenient connections to Dubai, and via Dubai.
Flights between Stockholm and Dubai will operate once a week on Saturdays. Emirates flight EK157 will depart Dubai at 08:40 and arrives in Stockholm at 13:10. The return flight EK 158 leaves Stockholm Arlanda Airport at 15:05 and arrives into Dubai International Airport at 23:20. All times are local.
The flights will be operated with the Emirates Boeing 777-300ER and can be booked on emirates.com or via travel agents.
Dubai is open: Customers from across Emirates’ network can now to travel to Dubai as the city has re-opened for business and leisure visitors with new air travel protocols that safeguard the health and safety of visitors and communities. For more information on entry requirements for international visitors to Dubai, visit: www.emirates.com/flytoDubai
Flexibility and assurance: With the gradual re-opening of borders over the summer, Emirates has revised its booking policies to offer customers more flexibility and confidence to plan their travel. Customers whose travel plans are disrupted by COVID-19 related flight or travel restrictions, can simply hold on to their ticket which will be valid for 24 months and rebook to fly at a later time; request travel vouchers to offset against future Emirates purchases, or request refunds via an online form on Emirates’ website or via their travel booking agent.
Health and safety first: Emirates has implemented a comprehensive set of measures at every step of the customer journey to ensure the safety of its customers and employees on the ground and in the air, including the distribution of complimentary hygiene kits containing masks, gloves, hand sanitiser and antibacterial wipes to all customers. For more information on these measures and the services available on each flight, visit: www.emirates.com/yoursafety
Travel restrictions: Customers are reminded that travel restrictions remain in place, and travellers will only be accepted on flights if they comply with the eligibility and entry criteria requirements of their destination countries. Visit: www.emirates.com/travelrestrictions
Strenghtens Rolls-Royce’s market position in safety-critical applications with a leader in dynamic uninterruptible power supply
Completes Rolls-Royce’s product offering and accelerates the strategy of offering integrated solutions
Acquisition expected to deliver cost and revenue synergies, and help support medium-term profitability and create long-term shareholder value
Rolls-Royce is strengthening its business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply. Rolls-Royce is already a leading provider of back-up power generation through its Power Systems business with its product and solutions brand MTU. This market has remained a growth area during the Covid-19 pandemic and is expected to grow in the coming years as customers look to further minimize their risk of disruption.
Uninterruptible power supply systems are used wherever stable electricity is required or a power failure would be extremely harmful, for example within data centres, hospitals or manufacturing facilities which operate sensitive processes. This acquisition is another important step on the strategic journey of Power Systems towards becoming a full-service provider of integrated solutions. Kinolt’s uninterruptible emergency power supply technology is particularly well suited to applications where space is at a premium, such as urban areas or installations in existing buildings and complements Rolls-Royce’s own MTU branded solutions for large scale and greenfield sites. As a result, the deal is expected to result in cost and revenue synergies, medium-term long-term shareholder value in the back-up power generation business.
Andreas Schell, CEO of Rolls-Royce Power Systems, said: “The extraordinary times created by the Covid-19 pandemic have shown just how important it is to secure electricity supply to sensitive and critical infrastructure. The provision of uninterruptible power is vital in any situation and even more so today, as it ensures the provision of vital services such as medical care or the world’s continued flow of internet traffic. Without it, no public authority or company would be able to act in any crisis.”
The demand for uninterruptible power solutions is expected to remain strong in the aftermath of the Covid-19 pandemic. The acquisition of Kinolt will give Rolls-Royce a market-leading solution for businesses and local authorities who experienced issues with supply, or do not wish to run the risk again.
“We originally signed the deal to acquire Kinolt before the full global impact of Covid-19 was apparent,” added Schell. “Since then we have rigorously examined the rationale for the transaction and the opportunities it presents to our business and concluded that the arguments in favour of the acquisition are even stronger than before.”
Power Generation is already the top-selling segment within the Power Systems business. In the future it is expected to be the only manufacturer in the world able to supply customers with all components and consequently a complete uninterrupted power generation system in the power range from 200 to 3,200 kVA. Kinolt’s technology consists of a combination of rotating, kinetic mass storage devices, a diesel engine and a generator that can also be used as an electric motor. MTU engines from Rolls-Royce are often already used within Kinolt’s solutions. The Kinolt system is connected between the external power supply system and safety-critical equipment and supplies the latter with the required electrical power during normal operation. The grid frequency and voltage are generally more stable than the grid of public power suppliers. This is necessary because data servers, computer-controlled systems or sensitive devices such as those in hospitals can fail in the event of voltage and frequency fluctuations. In the case of a power failure, the flywheel mass accumulator ‘bridges’ the first few seconds before the diesel engine takes up the load.
“We will integrate the products and systems of our new subsidiary into our MTU product portfolio,” said Andreas Görtz, Vice President of Power Generation at Rolls-Royce. “Our worldwide sales and service network will open up new market opportunities by offering innovative uninterruptible power solutions. This will significantly strengthen our market position in safety-critical applications.”
Kinolt is based in the town of Grâce-Hollogne in the Belgian province of Liège and was known as Euro-Diesel until mid-2019. The transaction was completed on 1 July 2020 following the approval of antitrust authorities.
Rolls-Royce stärkt sein Angebot an Stromversorgungssystemen für sicherheitskritische Anwendungen mit dem Abschluss der Übernahme von Kinolt S.A., einem in Belgien ansässigen Spezialisten für dynamische unterbrechungsfreie Stromversorgung.
Rolls-Royce is strengthening its business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply.
Avec l’aboutissement de l’acquisition de Kinolt S.A., un spécialiste de l’alimentation dynamique sans interruption (ASI) établi en Belgique, Rolls-Royce élargit son offre de systèmes d’alimentation électrique dédiés aux applications cruciales en matière de sécurité.
Rolls-Royce heeft de overname afgerond van Kinolt S.A., een in België gevestigde specialist voor dynamische onderbrekingsvrije stroomvoorziening. Met deze overname vergroot het zijn aanbod van stroomvoorzieningssystemen voor veiligheidskritische toepassingen.
The Boeing Company [NYSE: BA] announced today major program deliveries across its commercial and defense operations for the second quarter of 2020.
“Our commercial airplane deliveries in the second quarter reflect the significant impacts of the COVID-19 pandemic on our customers and our operations that included a shutdown of our commercial airplane production for several weeks. We have and will continue to work with our customers on specific timing and adjustment to deliveries,” said Greg Smith, Boeing executive vice president of Enterprise Operations, chief financial officer and interim leader of Communications. “We continue to closely monitor the commercial marketplace by staying very engaged with our customers around the globe to fully understand short term and long term requirements. All of this is informing current and future production rates and any further adjustments as needed to balance supply and demand going forward. The diversity of our portfolio including our government services, defense and space programs will continue to provide some stability as we navigate through the pandemic and rebuild stronger on the other side.”
Major program deliveries during the second quarter were as follows:
Embraer today announced a series of breakthrough cabin enhancements for its Praetor 500 midsize and Praetor 600 super-midsize business jets, consolidating the Praetor position as the best cabin environment among all medium jets. In addition to the lowest cabin altitude in the class (5,800 feet) and 100% fresh air capability, Embraer is now making the HEPA filter standard on all Praetor aircraft, announcing the certification of a new electric lavatory pocket door, and approving the use of MicroShield360.
“The Praetors truly lead the way as the most disruptive and technologically advanced aircraft in their respective categories for features such as the best-in-class Environmental Control System and cabin altitude. In the context of the COVID-19 pandemic, the incorporation of new health and safety technologies is paramount, which is why we are proud to deliver even more value to Praetor customers with this series of cabin enhancements,” said Michael Amalfitano, President & CEO, Embraer Executive Jets. “Furthermore, with the certification of the new electric lavatory pocket door, the Praetors combine the cleanest cabin environment and compliance with the most stringent operational requirements, such as Part 135.”
As new-generation aircraft, the Praetor 500 and Praetor 600 were designed with the latest technologies, including the ability to move 100% fresh air through the cabin. Now standard, the HEPA filter further improves cabin air quality, capturing 99.97% of all particles, such as bacteria, viruses, and fungi. Additionally, Embraer has tested and approved the use of MicroShield360 ― a preventative coating system that, when applied to aircraft interiors, continuously inhibits the growth of microbes on surfaces. A signature feature of the Praetor family, the aircraft enjoy the lowest cabin altitude in their classes. At 45,000 feet, Praetor passengers experience a comfortable 5,800-foot cabin altitude. As a result, passengers feel more rested and refreshed. The combination of these new and existing features equates to cabin health that is unparalleled in the medium cabin segment.
To further enhance the atmosphere of safety and cleanliness in the cabin, Embraer has developed the only electric lavatory pocket door in the midsize and super-midsize categories. Certified by ANAC in early June 2020, and recently validated by EASA and the FAA, the Praetor 500 and Praetor 600 are the only aircraft in the medium cabin segment to have the emergency exit door in the lavatory, while complying with the latest cabin safety requirements. This new optional feature, which allows the passenger the comfort of opening the lavatory door by just pressing a button, is now available for delivery in both new Praetor jets, and is retrofittable on both Praetor and Legacy 450 and 500 models (starting in the fourth quarter of 2020).
The new electric lavatory pocket door allows 100% of the Praetor aircraft to have the emergency exit in the lavatory — even those under FAA Part 135 operations. By moving the emergency exit to the lavatory, the cabin is further enhanced with a recognizably clean, quiet, and functional aesthetic, featuring minimized placards, temperature management, and noise reduction, thanks to the lack of an exit door cutout — plus full seat and table functionality.
Today, the Praetor platform, which is based on the Legacy 450/500, enjoys over 160 aircraft in operation and more than 180,000 flight hours.
AIRPORT NARITA, TOKYO, JAPAN - 2017/05/06: Air New Zealand Boeing 787-9 Dreamliner landing at Tokyo Narita airport. (Photo by Fabrizio Gandolfo/SOPA Images/LightRocket via Getty Images)
Air New Zealand has put a hold on new bookings on international services into New Zealand following a request from the New Zealand Government.
The move is to help ensure the country is able to provide quarantine accommodation for inbound passengers for the required 14-day period.
As well as the temporary hold on new bookings for the next three weeks, the airline is also looking at aligning daily arrivals with the capacity available at managed isolation facilities. This may mean some customers will need to be moved to another flight.
Air New Zealand Chief Commercial and Customer Officer Cam Wallace says the airline has been working closely with the government to understand how it can support the government’s efforts to contain COVID-19 at the border.
“We accept this is a necessary short-term measure given the limited capacity in quarantine facilities and we’re keen to do what we can to help New Zealand’s continued success in its fight against COVID-19.”
The airline is proactively contacting customers affected by these changes from today. The Air New Zealand contact centre is currently experiencing very high demand, and customers are also welcome to contact the airline via its social media channels. Customers booked via a travel agent, including a third-party website (e.g. Expedia, Booking.com) should speak directly with their agent.
Air New Zealand is grateful to customers for their patience while it works through these changes.
Outbound Air New Zealand services from New Zealand to international ports are not affected by the New Zealand Government restrictions. Domestic services are not impacted.
AIRPORT NARITA, TOKYO, JAPAN – 2017/05/06: Air New Zealand Boeing 787-9 Dreamliner landing at Tokyo Narita airport. (Photo by Fabrizio Gandolfo/SOPA Images/LightRocket via Getty Images)
OSLO (Reuters) – Norwegian Air <NAS.OL> has cancelled orders for 97 Boeing <BA.N> aircraft and will claim compensation from the U.S. plane maker for the grounding of the 737 MAX and for 787 engine troubles that hit its bottom line, the Oslo-based carrier said on Monday.
The airline cancelled 92 of the 737 MAX jets, five 787 Dreamliners and so-called GoldCare service agreements related to both aircraft, just as Boeing on Monday began a crucial set of flight tests of the 737 MAX in an effort to gain regulatory approval for it to return to the skies.
“Norwegian has in addition filed a legal claim seeking the return of pre-delivery payments related to the aircraft and compensation for the company’s losses related to the grounding of the 737 MAX and engine issues on the 787,” the airline said.
Norwegian did not specify the amount it would seek to claim from Boeing, which it had been in talks with about compensation, and was not immediately available for comment.
Boeing said it was working with Norwegian on a path forward in a challenging time as it was with other operators but it would not comment on commercial discussions.
The problematic Trent 1000 engines, used on the Dreamliners, were made by Rolls-Royce <RR.L>, which Norwegian has been in a dialogue with about compensation. Monday’s statement did not say whether Norwegian would file a legal claim against Rolls-Royce.
The European budget carrier, which revolutionised transatlantic travel by offering cheap fares, was struggling before the COVID-19 pandemic brought the airline industry to its knees.
One reason was the grounding of the 737 MAX in March 2019 following the second of two fatal crashes that together killed 346 people. Norwegian had 18 MAX passenger jets in its 163-aircraft fleet at the time.
Originally a small regional airline in Scandinavia, Norwegian made its breakthrough on the global stage with a multi-year order in 2012 for up to 372 aircraft, of which 222 were from Boeing and 150 from Airbus <AIR.PA>.
(Reporting by Gwladys Fouche and Terje Solsvik; Additional reporting by Eric M. Johnson in Seattle; Editing by Leslie Adler and Christopher Cushing)
FILE PHOTO: Norwegian Air Sweden Boeing 737-800 plane SE-RRY lands in Riga International Airport in Riga
KiwiRail is delighted to announce the return of its acclaimed TranzAlpine train service between Christchurch and Greymouth.
“I’m excited to be able to say that this award-winning train, which last ran on March 22 before the lockdown, will be back from July 4,” KiwiRail Group Chief Executive Greg Miller says.
“We will resume with a weekend and school holiday timetable in July and August as KiwiRail continues to assess demand in a difficult season for tourism, with borders still closed to international visitors.
“We’re conscious of how important this service is to the West Coast economy and we’re looking forward to bringing visitors to the Coast again, allowing them to see the snow-capped Southern Alps along the way.
“This will be an ideal time for New Zealand families to try something new, and together experience what Lonely Planet has described as one of the world’s 10 most amazing rail journeys.”
During July and August, the TranzAlpine will run on weekends, departing Christchurch at 8.15am, and spending an hour in Greymouth before leaving at 2.05pm on Saturdays and Sundays. It will also run every day of the school holidays, July 6-17 inclusive, on the same timetable as weekends. KiwiRail hopes this will be an opportunity for families to share this unique experience. All fares will be changeable, fully refundable and available at the winter special rate of $75 per seat one way.
Opening the TranzAlpine is KiwiRail’s priority for its scenic train services which, on average, have more overseas than domestic customers. The company also operates the Coastal Pacific train between Picton and Christchurch, which does not run during winter, and the Northern Explorer between Auckland and Wellington which is not currently considered financially viable. No decisions have yet been made on the return of the Northern Explorer and Coastal Pacific. KiwiRail also runs a commuter rail service between Palmerston North and Wellington, which resumed in late April.
“Covid-19 has taken a heavy toll on tourism everywhere and unfortunately, like other tourism providers, KiwiRail and the communities we serve have suffered the impact,” says Mr Miller.
“We have utilised this downtime to look at exciting opportunities and options, including offering different classes of service onboard the TranzAlpine, beginning this spring. We are confident we can serve the market at different levels with an enhanced service for those who want something extra, while still ensuring more accessible fares are also on offer.”
The booking system at www.greatjourneysofnz.co.nz/tranzalpine/ is open now for TranzAlpine bookings in July and August, and bookings will open shortly for September and beyond. KiwiRail will be contacting those people who have bookings on services that have been cancelled. Those people already booked on the Northern Explorer – which has very light advanced bookings – will be given a 100 per cent refund or, if they prefer, a letter of credit. People booked on the TranzAlpine on days when it will not now run can choose to be rebooked, or receive either a 100 per cent refund, or a letter of credit for a future booking.
In addition, anyone with an existing booking on the TranzAlpine for one of the winter weekends or the July school holidays will receive a refund of the difference between the higher fare they paid, and the new winter special rate of $75 per seat. For example, if you have already paid $150 for a ticket on the TranzAlpine, we’ll either refund you the $75 difference, or give you a voucher for $75 to spend onboard, or you could use the difference to buy another ticket for a friend or family member.
“We know that our customers all look forward to their trips with us, just as we look forward to serving them. We apologise to affected customers for any inconvenience as we urgently consider how to make long-distance train journeys more attractive, more diverse and more financially sustainable.
“Our Interislander ferries and scenic trains play a significant role in New Zealand’s tourism sector but 2020 has turned out to be difficult for all operators. We are focussed on our return, and on better days ahead.
“We’re working hard on options and opportunities, are looking forward to making further announcements. In the meantime, we will welcome families and holidaymakers aboard the TranzAlpine from Saturday, July 4.”
Air New Zealand has begun services to and from Nadi, Fiji to assist the Fijian government in repatriating its citizens.
Flight NZ952 took off from Auckland just after 11.00 this morning with Fijian passport holders on board, bound for Nadi, Fiji. The flight arrived in Fiji just after 2.00 pm, local time. A return service is also expected to repatriate New Zealanders who have been in Fiji since Covid-19 travel bans were implemented.
The repatriation flights to Fiji are being carried out in accordance with the Travel Advice issued by the Government of Fiji. On arrival in Fiji, all passengers are required to enter a government-designated quarantine facility for 14 days and will then be required to complete a further 14 days home isolation.
Air New Zealand’s Country Manager Fiji, Zeena Sahib says the airline is very happy to be supporting the Government of Fiji with the safe return of Fijians to their home country.
“There are a number of Fijian passport holders who have been in New Zealand for an extended period of time due to COVID-19 related border restrictions. Air New Zealand is very pleased to be assisting the Fijian government with ensuring their safe return home.”
Customers who wish to travel to Fiji, and who meet border restrictions for entry, are advised to contact Air New Zealand at groups@airnz.co.nz to arrange travel.
Customers already booked on an Air New Zealand flight to Fiji who do not meet entry requirements are encouraged to visit the Covid-19 FAQs section of the Air New Zealand website where they will automatically be able to put their flights into credit.
