World’s number one regional aircraft lessor and world’s number one regional aviation manufacturer sign landmark deal worth over US$ 2 billion
Strategic move from NAC to shape the future with the most eco-responsible and efficient regional aircraft
Paris-Le Bourget, 18 June, 2019 – Regional aircraft leasing specialist NAC and ATR, the world’s number one regional aircraft manufacturer, have today signed a Letter of Intent for 35 firm ATR -600s, with options for a further 35 and purchase rights for another 35. The deal represents a seal of long-term confidence from the number one regional aircraft lessor whose desire to focus on the most efficient and sustainable technology has led them to invest in the ATR 72-600. NAC’s recognition of the quality of the ATR programme also highlights the enduring retained asset value of the -600 series and its value proposition in the market.
Deliveries of the initial 35 aircraft will begin in 2020 and run up to 2025; the delivery schedule is optimised to ensure that market demand is best satisfied over the five-year period. This new deal cements a very successful and longstanding collaboration between NAC and ATR. Since 2010, over 100 speculative ATR aircraft orders were turned into deliveries to NAC.
NAC Chairman Martin Moller said: “To plan for a successful future, it is vital for us to invest in the very best technology, so that we can offer flexible and efficient solutions to our clients. The ATR72-600, with a significant fuel burn advantage drives lower costs and emissions making it the optimal choice for many of our clients. Aviation is moving towards a sustainable future and with this 100+ aircraft deal, we are making a strategic decision to ensure that airlines can lease and operate the most modern and eco-responsible regional aircraft available in the market.”
Stefano Bortoli, Chief Executive Officer of ATR commented: “We congratulate NAC on their forward-looking vision. It is a smart business move from NAC and one very much in line with the trends in regional aviation to connect communities and develop businesses across the globe in the most responsible and cost efficient way. To receive this order from the leading lessor in our segment, validates the value creation and quality of our product and its sustainable credentials and shows the efficiency of turboprop technology going forward. This deal clearly shows where the trend in regional aircraft is going.”
About Nordic Aviation Capital:
NAC is the industry’s leading regional aircraft lessor serving over 76 airline customers in 51 countries. The company provides aircraft to well-established carriers such as British Airways, Air Canada, LOT, Azul, Lufthansa, Garuda, Flybe, Aeroméxico and airBaltic as well as major regional carriers including Air Nostrum and Widerøe. NAC’s current fleet of almost 500 aircraft includes ATR 42, ATR 72, Bombardier Dash 8, CRJ900, CRJ1000, A220, E170, E175, E190 and E195.
About ATR:
ATR is the world number one regional aircraft manufacturer with its ATR 42 and 72 aircraft the best-selling aircraft in the less than 90-seat market segment. In 2018 the company had a turnover of US$1.8 billion. The unifying vision of the company’s 1,400 employees is to help everyone, no matter where they are in the world, to connect and develop in a responsible manner. Thanks to the efficiency of turboprop technology and the benefits of the company’s focus on continuous innovation, ATRs open more than 100 new routes every year, burn 40% less fuel and emit 40% less CO2 than regional jets. For all of these reasons, ATRs have been chosen by some 200 companies in 100 countries around the world. ATR is a joint-venture between Airbus and Leonardo.
LE BOURGET, France June 17 (Reuters) – Boeing Co said on Monday it would supply parts for A320 jetliners made by its competitor Airbus to supply British Airways, the first such agreement by the U.S. planemaker to support an Airbus aircraft.
Under the agreement announced at the Paris Airshow, Boeing will manage and maintain a global exchange inventory of parts for Airbus’ A320 and A320neo single-aisle aircraft.
The deal reflects a push by the world’s largest planemaker into the higher-margin services business that includes aircraft parts and analytics, which Chief Executive Officer Dennis Muilenburg aims to grow to $50 billion in revenue in a decade.
“We were happy to put our hat in the ring and give a choice to British Airways,” Boeing Global Services Chief Executive Stan Deal told reporters.
British Airways also signed a deal for three landing gear exchanges for its 777 widebody fleet, Boeing said.
Separately on Monday, Boeing signed an agreement through its subsidiary Jeppesen to provide United Airlines with analytics services to help the carrier optimize crew planning operations through its entire fleet.
(Reporting by Eric M. Johnson and Tim Hepher; Editing by Alexander Smith and Mark Potter)
NEW YORK–(BUSINESS WIRE)– JetBlue Airways Corporation (NASDAQ:JBLU) reported its preliminary traffic results for May 2019. Traffic in May increased 5.7 percent from May 2018, on a capacity increase of 5.4 percent.
Load factor for May 2019 was 86.0 percent, an increase of 0.2 points from May 2018. JetBlue’s preliminary completion factor for May 2019 was 99.7 percent and its on-time (1) performance was 77.6 percent. JetBlue expects second quarter revenue per available seat mile (RASM) to range between 2.0 and 4.0 percent.
(1) The U.S. Department of Transportation considers on-time arrivals to be those domestic flights arriving within 14 minutes of schedule.
JetBlue is New York’s Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 42 million customers a year to 100+ cities in the U.S., Caribbean, and Latin America with an average of more than 1,000 daily flights. For more information please visit jetblue.com.
LONDON (Reuters) – The chief executive of British Airways owner IAG ruled out bidding for Thomas Cook’s airline unit on Friday, a day after rival Virgin Atlantic was reported to be interested in part of the business.
Lufthansa and private equity fund Indigo Partners are seen among the front-runners for Thomas Cook’s airlines after the firm put it up for sale in February, to raise cash after a string of profit warnings in 2018.
IAG had previously been linked with the business, but on Friday, Chief Executive Willie Walsh said that his firm had not made a bid.
“In relation to Thomas Cook… we’re not putting in any bid,” Walsh told reporters.
He added in an analyst call later in the day that the firm was not actively pursuing M&A at the moment but was in a strong position to do so if something attractive came up.
Virgin Atlantic has put in a preliminary offer for the tour operator’s UK long-haul business, Sky News reported on Thursday. Thomas Cook and Virgin Atlantic both declined to comment on the report.
Lufthansa is a bidder for Thomas Cook’s German airline Condor with an option to acquire the remaining airlines of the British travel group, Lufthansa’s CEO said on Tuesday.
Indigo Partners is also a likely suitor for Thomas Cook’s airline business, sources said last week, adding that the deadline for initial bids was on Tuesday earlier this week.
An unexpectedly warm summer in northern Europe last year deterred holiday makers from booking lucrative last minute getaways, resulting in two major profit warnings for the world’s oldest travel company.
Worries about the firm’s ability to pay its debts pushed the yield on its euro-denominated bonds that mature in 2022 to a record high last Friday, and Thomas Cook said later in the day that it was in talks with its lenders about bolstering its finances.
Thomas Cook’s half-year earnings release for the six months to March 31 is due next Thursday.
(Reporting by Alistair Smout; Editing by Keith Weir)
Fiji Airways has adopted the A350 XWB as part of its expansion plans to broaden its international network. Two A350-900s will be leased from Dubai-based DAE Capital, making Fiji Airways the newest operator and DAE Capital the latest customer.
With its common type rating with the A330 Family, the A350 XWB was the natural aircraft choice to seamlessly join the airline’s existing fleet of four A330s. The common rating between the A350 XWB and A330 means that pilots who are qualified and current on the A330 can already commence preparations to take the A350 XWB’s controls by undergoing “differences training” only, meaning a significant cost savings and operational flexibility.
The aircraft will be configured with 33 full lie-flat Business Class and 301 Economy Class seats. The aircraft will be deployed to enhance existing long-haul services between Fiji, Australia and the U.S., and to provide the opportunity to open additional routes.
The A350 XWB is the world’s most modern and eco-efficient aircraft family shaping the future of air travel. It is the long-range leader in the large widebody market (300 to 400+ seats). The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments up to ultra-long haul (9,700 nm). It features the latest aerodynamic design, carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce engines. Together, these latest technologies translate into unrivalled levels of operational efficiency, with a 25% reduction in fuel burn and emissions. The A350 XWB’s Airspace by Airbus cabin is the quietest of any twin-aisle and offers passengers and crews the most modern in-flight products for the most comfortable flying experience. At the end of March 2019, the A350 XWB Family had received 890 firm orders from 50 customers worldwide, making it one of the most successful widebody aircraft ever.
LONDON (Reuters) – Thomas Cook has set a deadline of May 7 for expressions of interest in its airline business, with Indigo Partners and Lufthansa among the likely bidders, sources said.
The heavily-indebted British travel group put its profitable airline business up for sale in February after profit warnings in 2018 left it needing to raise cash.
Thomas Cook’s airlines business consists of Germany’s Condor, as well as British, Scandinavian and Spanish operations.
A sale of the business, in whole or in part, would enable the world’s oldest tour operator to invest more in its own hotels and improve its online sales.
A source familiar with the discussions said that Indigo and Germany’s Lufthansa appeared most interested in the business.
British Airways owner IAG should not be ruled out and easyJet has engaged in talks but is seen as less interested, the source added.
It is not clear whether Ireland’s Ryanair would bid.
Another source said that private equity groups KKR and Apollo might also look at taking over the whole of Thomas Cook.
The airlines business would provide access to valuable European slots linking Britain to Spain, Greece and Turkey.
Thomas Cook, Indigo, IAG and easyJet declined to comment, while Lufthansa and Ryanair were not immediately available.
Lufthansa executives have said repeatedly that the German airline wants to “play an active role” in consolidation.
Indigo, the private equity firm managed by Bill Franke, the veteran U.S. low-cost airline investor, has previously made investments in several airlines including Hungary’s Wizz.
Thomas
Cook has been revamping different parts of its business this year,
closing high street stores and reviewing its money division as it
focuses on holidays.
The company was hit badly in 2018 when a hot European summer deterred customers from booking holidays through the year.
One banking source said the airline would fetch less than 1 billion euros (£859 million). Thomas Cook has a current market value of just over £400 million.
Sources said that competition issues could influence which parts of the business different suitors go for.
Sky News has said China’s Fosun International, a Thomas Cook shareholder, was interested in its tour business.
(Reporting by Kate Holton and Clara Denina in London; additional reporting by Alistair Smout and Georgina Prodhan in London and Arno Schuetze in Frankfurt; Editing by Alexander Smith)
FILE PHOTO: A Thomas Cook Airbus A321-200 airplane takes off at the airport in Palma de Mallorca, Spain, July 28, 2018. REUTERS/Paul Hanna/File Photo
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
NEW YORK–(BUSINESS WIRE) – JetBlue Airways Corporation (NASDAQ:JBLU) today reported its results for the first quarter 2019:
Reported diluted earnings per share of $0.14 in the first quarter of 2019 compared to $0.28 in the first quarter of 2018. Adjusted diluted earnings per share was $0.16 in the first quarter of 2019 versus $0.26 in the first quarter of 2018. Note A to this earnings release includes the GAAP to Non-GAAP reconciliation between reported and adjusted diluted earnings per share.
GAAP pre-tax income of $58 million, a decline of 48.5% from $113 million in the first quarter of 2018. Excluding the one-time costs, adjusted pre-tax income of $70 million(1), a decline of 38.2% from the first quarter of 2018.
Pre-tax margin of 3.1%, inclusive of the one-time costs, a 3.3 point decline from the first quarter of 2018. Adjusted pre-tax margin of 3.7%(1), a 2.7 percentage point decline year over year.
Highlights from the First Quarter 2019
First quarter 2019 revenue per available seat mile (RASM) declined 3.1%, year over year, driven by holiday calendar placement, improved completion factor and certain areas of softness observed in the trough period. Excluding the 0.75 point impact from high completion factor, RASM declined 2.4% year over year, slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%).
Operating expenses per available seat mile, excluding fuel (CASM ex-fuel) (1) increased 0.9%, below the low end of our initial guidance range of 1.5% to 3.5%. This increase includes a benefit of approximately 0.75 points from improved completion factor.
Key Guidance for the Second Quarter and Full Year 2019:
Capacity is expected to increase between 4.5% and 6.5% year over year in the second quarter 2019. For the full year 2019, JetBlue expects capacity to increase between 4.5% and 6.5%.
RASM growth is expected to range between 1.0% and 4.0% for the second quarter 2019 compared to the same period in 2018. Our guidance includes a benefit of 2.25 points of impact related to the calendar placement shift of Easter and Passover between the first and second quarters of 2019.
CASM ex-fuel is expected to increase between 1.5% and 3.5% for the second quarter of 2019, principally driven by engine maintenance timing and the year-over-year impact of the pilot contract effective on August 1st, 2018. For the full year 2019, JetBlue continues to expect year over year CASM ex-fuel to be between flat and 2.0%.
For further details see the latest Investor Update and the First Quarter 2019 Earnings Presentation available via the internet at http://investor.jetblue.com.
JetBlue will conduct a conference call to discuss its quarterly earnings today, April 23, 2019 at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at http://investor.jetblue.com.
Executing our Plan to Reach our EPS Commitments “We are very proud of our team and the work they do every day to deliver the JetBlue experience. This quarter our financial performance was mainly impacted by the calendar placement of Easter and Passover holidays and, as disclosed in March, a softer revenue environment than initially expected,” said Robin Hayes, JetBlue’s Chief Executive Officer.
“In recent years we have repeatedly demonstrated our ability to adapt to the changing environment around us to achieve our margin commitments – and 2019 is proving to be no different. We believe we will successfully execute our five ‘building blocks’ introduced at our 2018 Investor Day, and we remain committed to our goal of delivering earnings per share between $2.50 and $3 dollars by 2020. We also continue to expect margin expansion in 2019, and to further expand our margins in 2020.”
“We believe our work will position us for success into the next decade. Next year we anticipate the first delivery of our margin-accretive A220s, a game-changing aircraft to further help us reduce our unit costs, improve our margins and increase our EPS. We are thrilled that we recently converted 13 A321s in our order book to A321 LRs, and we expect to begin our European service by adding London from Boston and New York starting in 2021,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.
Revenue Performance and Outlook
First quarter RASM declined 3.1% year over year. Excluding the 0.75 point headwind from improved completion factor, RASM was slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%). “Our RASM was negatively impacted by three drivers: this year’s holiday calendar placement, improved completion factor, and certain areas of softness we observed in the trough period,” said Marty St. George, JetBlue’s EVP Commercial and Planning.
“Looking into the second quarter, we expect RASM growth between 1.0% and 4.0% year over year. Our guidance includes an anticipated 2.25 point positive impact of Easter/Passover holiday placement shift into April. March RASM showed clear signs of a weaker trough, which extended into the first half of April. The April peak, however, is showing the strength we had expected, and very early look at May and June points to sequential RASM acceleration.”
Cost Performance, Outlook and Balance Sheet
“Our first quarter CASM ex-fuel represents a unit cost increase below the mid-point of our guidance range. For the second quarter, we expect CASM ex-fuel growth to range between 1.5% and 3.5%. As a reminder, both our first quarter and second quarter guidance include an approximately three-point impact from our pilot contract signed last August,” said Steve Priest, JetBlue’s EVP Chief Financial Officer.
“We could not be prouder of the hard work across JetBlue to deliver on our commitments to hit our goals. We are encouraged by the CASM ex-fuel progress we made in the first quarter, and the progression we anticipate for the rest of the year. In the first half we will continue to digest our first pilot contract, and despite our capacity reduction from early March, our guidance range remains between 0 and 2 percent.”
Capital Allocation and Liquidity
JetBlue ended the quarter with approximately $876 million in unrestricted cash, cash equivalents, and short term investments, or about 11.3% of trailing twelve month revenue. In addition, at the end of the quarter, JetBlue maintained approximately $625 million in undrawn lines of credit. JetBlue repaid $133 million in regularly scheduled debt and capital lease obligations for the first quarter.
Fuel Expense and Hedging
The realized fuel price in the quarter was $2.05 per gallon, a 2.0% decline versus first quarter 2018 realized fuel price of $2.09.
JetBlue entered into forward fuel derivative contracts to hedge approximately 7% of its fuel consumption for the second quarter of 2019. Based on the fuel curve as of April 12th, JetBlue expects an average all-in price per gallon of fuel of $2.21 in the second quarter of 2019.
About JetBlue
JetBlue is New York’s Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 42 million customers a year to 100+ cities in the U.S., Caribbean, and Latin America with an average of more than 1,000 daily flights. For more information please visit jetblue.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent our management’s beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words “expects,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; our significant fixed obligations and substantial indebtedness; volatility in fuel prices, maintenance costs and interest rates; our reliance on high daily aircraft utilization; our ability to implement our growth strategy; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on a limited number of suppliers; our dependence on the New York and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation; changes in our industry due to other airlines’ financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the spread of infectious diseases; adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this press release, could cause our results to differ materially from those expressed in the forward-looking statements. Potential factors that could affect our results include, in addition to others not described in this press release, those described in Item 1A of our 2018 Form 10-K under “Risks Related to JetBlue” and “Risks Associated with the Airline Industry”. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur.
WASHINGTON (Reuters) – U.S. Transportation Secretary Elaine Chao said on Monday she named four experts to a blue-ribbon committee to review the Federal Aviation Administration’s (FAA) aircraft certification process after two deadly Boeing 737 MAX crashes killed nearly 350 people.
Chao said she was naming NASA’s former aviation safety program director Amy Pritchett and Gretchen Haskins, chief executive of HeliOffshore Ltd, an international expert in aviation safety and a former U.S. Air Force officer.
She also named Kenneth Hylander, chief safety officer at Amtrak and a former senior safety executive at Delta and Northwest airlines, and J. David Grizzle, chairman of the board of Republic Airways and a former FAA chief counsel.
The committee is “specifically tasked to review the 737 MAX 800 certification process from 2012 to 2017, and recommend improvements to the certification process.”
U.S. lawmakers have criticized the FAA’s program that allows Boeing Co and other manufacturers to oversee the process that ensures air worthiness and other vital safety aspects of new aircraft.
Chao said last month the panel would be co-chaired by retired Air Force General Darren McDew, the former head of the U.S. Transportation Command, and Lee Moak, a former president of the Air Line Pilots Association.
Federal prosecutors, the Transportation Department’s inspector general and lawmakers are investigating the FAA’s certification of the 737 MAX 8 aircraft. A joint review by 10 governmental air regulators is also set to start April 29.
(Reporting by David Shepardson; Editing by Tom Brown)
MUMBAI/NEW DELHI, April 17 (Reuters) – India’s embattled Jet Airways Ltd is set to temporarily halt operations from Wednesday onward after its lenders rejected the airline’s plea for emergency funds, three sources from inside the company said on Wednesday.
The airline, saddled with roughly $1.2 billion of bank debt, has been teetering for weeks after failing to receive a stop-gap loan of about $217 million from its lenders, as part of a rescue deal agreed in late March.
Separately, two sources at state-run banks told Reuters on Wednesday that the lenders had rejected the 4 billion rupees ($58 million) that Jet had sought to keep itself temporarily afloat, while its lenders attempted to identify an investor willing to acquire a majority stake in the airline and attempt to turn it around.
“Bankers did not want to go for a piecemeal approach which would keep the carrier flying for a few days and then again risk having Jet come back for more interim funding,” said one of the bank sources directly involved in Jet’s debt resolution process.
All five sources declined to be named as they have not been authorized to discuss the matter with media.
Jet and its lead lender State Bank of India (SBI) did not immediately respond to requests for comment.
($1 = 69.4120 Indian rupees)
(Reporting by Tanvi Mehta and Promit Mukherjee in Mumbai and Aftab Ahmed and Aditi Shah in New Delhi; Writing by Euan Rocha; Editing by Susan Fenton)
