Ryanair today (Tues 10 Mar) announced the suspension of its full flight schedule to/from and within Italy, following the decision of the Italian Government to “lock down” the entire country to contain the spread of the Covid-19 virus.
These additional cuts will be implemented as follows:
From 24:00hrs Weds 11 Mar until 24:00hrs Wed 8 Apr, Ryanair will suspend all Italian domestic flights.
From 24:00hrs Fri 13 Mar until 24:00hrs Wed 8 Apr, Ryanair will suspend all Italian international flights.
All affected passengers have received email notices today informing them of these flight cancellations. Passengers looking for repatriation can obtain a free move to an earlier Ryanair flight operating up until midnight Fri 13 Mar. Affected passengers will be able to choose between a full refund or a travel credit that can be redeemed on Ryanair flights in the next 12 months.
Ryanair continues to comply fully with WHO and national Government guidance and travel bans. The situation is changing on a daily basis, and all passengers on flights affected by travel bans or cancellations, are receiving emails and are being offered flight transfers, full refunds or travel credits.
Ryanair apologises sincerely to all customers for these schedule disruptions, which are caused by national Government restrictions and the latest decision of the Italian Government to lock down the entire country to combat the Covid-19 virus.
Virgin Australia’s share price dipped below 10 cents on Monday – days after credit rating agency Standard & Poor’s downgraded its outlook to negative.
The drop represents an enormous fall from a high of $2.19 in February 2007. Virgin played down the developments, claiming any speculation of the future of the business was “untrue and misleading”.
Last week, Australian Aviation reported that the wider group announced a $97 million half-year loss and its intention to cut its Tigerair fleet.
BEIJING/SHANGHAI, March 2 (Reuters) – Shares in HNA Group-controlled companies rose on Monday after the Chinese aviation and tourism conglomerate said it had asked the government to help it resolve liquidity risk caused by the coronavirus outbreak which has put heavy pressure on the airline industry.
HNA directly owns or holds stakes in a number of local Chinese carriers, which have suffered in recent weeks from widespread flight cancellations and plummeting demand.
Hainan Airlines Holding Co Ltd, the flagship of HNA Group Co Ltd, rose by over 3% by 0400 GMT, while HNA Technology Investments Holdings Ltd surged nearly 40%.
Other units such as HNA Investment Group Co Ltd and HNA Technology Co Ltd also saw their prices climb.
HNA Group said on Saturday it had asked the Hainan provincial government to lead a working group as it was not able to deal with the liquidity risk itself.
The group had acknowledged liquidity issues before the coronavirus outbreak started. In December, Chairman Chen Feng said HNA had faced cash flow shortage that forced it to delay salary payments.
Its Saturday announcement has driven heavy discussion in China on whether there will be a carving up of its assets.
Two weeks ago, HNA-related shares likewise rose on a media report that said China’s government planned to take over the debt-laden conglomerate.
“The implementation of a government acquisition would be challenging as HNA’s structure is complex,” Warut Promboon, head of credit research at Bondcritic, said on Monday. “Overall, it is credit positive. HNA has grown too fast and is too big that it needs to be broken down. The restructuring will be best under the state support.”
Plans to expand UK’s Heathrow airport by architecture firm Grimshaw are in disarray as a court has deemed a third runway illegal due to climate change implications.
The UK’s court of appeal ruled today that a new runway was illegal because government ministers had not taken into account the Paris Agreement – a treaty between countries to try and keep global temperature rise below 1.5 degrees Celsius.
It is the first time a court has passed a ruling based on the Paris Agreement and potentially could set a precedent for challenges brought against projects with high emissions.
Environmental campaigners won appeal
UK architecture practice Grimshaw masterplanned a “sustainable but affordable” £14 billion extension to Heathrow in 2016. Renders showed a new terminal planted with trees underneath an undulating glass roof.
Embraer (ERJ) delivered a total of 198 jets in 2019, of which 89 were commercial aircraft and 109 were executive jets (62 light and 47 large), which represents an increase of 9% compared to 2018, when the Company delivered a total of 181 jets. The deliveries were within the outlook ranges for 2019 of 85 to 95 for the commercial aviation market and of 90 to 110 for the business aviation market. In the fourth quarter of 2019, Embraer delivered 81 jets, being 35 commercial aircraft and 46 executive jets (20 light and 26 large). As of December 31, the firm order backlog totaled USD 16.8 billion. See details below:
Deliveries by Segment
4Q19
2019
Commercial Aviation
35
89
EMBRAER 175 (E175)
22
67
EMBRAER 190 (E190)
2
5
EMBRAER 195 (E195)
1
3
EMBRAER 190-E2 (E190-E2)
4
7
EMBRAER 195-E2 (E195-E2)
6
7
Executive Aviation
46
109
Phenom 100
4
11
Phenom 300
16
51
Light Jets
20
62
Legacy 650
3
5
Legacy 450
10
15
Legacy 500
5
11
Praetor 500
3
3
Praetor 600
5
13
Large Jets
26
47
TOTAL
81
198
In the fourth quarter of 2019, Embraer delivered the first Praetor 500 business jet to Flexjet, a global leader in private jet travel, just over one year after its announcement at the 2018 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE).
Embraer also announced the expansion of its Executive Jets Service Center at Fort Lauderdale-Hollywood International Airport (KFLL), expanding its service capacity through a lease agreement with Jetscape Services for a dedicated hangar. Embraer’s presence in Florida is strategic for its Executive Jets customers throughout the Southern United States, the Caribbean and Central America as well as for those whose travel frequently brings them through South Florida.
In the same period, Embraer delivered the second KC-390 Millennium to the Brazilian Air Force and the contract with the Portuguese Government for a firm order for five KC-390 airlifters was included in Embraer’s backlog in the fourth quarter of 2019.
At the Dubai Air Show, Embraer announced the name and designation of its multi-mission medium aircraft, the Embraer C-390 Millennium. The new designation reflects increased flexibility and value for operators that look for a transport/cargo aircraft to perform airlift and air mobility missions, among others. In addition, Embraer and Boeing announced that the joint venture to promote and develop new markets for the C-390 Millennium multi-mission airlift and air mobility aircraft will be called Boeing Embraer – Defense. The organization will only be operational after the companies’ joint venture receives regulatory approvals and meets closing conditions.
Also during the event in Dubai, Embraer announced two contracts for commercial aircraft: a contract with Air Peace for three additional E195-E2s, confirming purchase rights from the original contract and a firm order for three E190 jets with CIAF Leasing.
Embraer welcomed three new E2 operators. Helvetic Airways, from Switzerland, and Air Kiribati, national airline of the Republic of Kiribati, received its first E190-E2 jets, while Binter, of Spain, received its first E195-E2. Embraer also signed firm orders with SkyWest, for 20 E175 that will be operated by American Airlines, and with Congo Airways for two E175 aircraft, with purchase rights for a further two.
Bombardier transfers its remaining interest in Airbus Canada Limited Partnership (Airbus Canada) to Airbus SE and the Government of Québec
Airbus now holds 75 percent of Airbus Canada with the Government of Québec increasing its holding to 25 percent for no cash consideration
Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Québec
Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada
Over 3,300 Airbus jobs secured in Québec
Amsterdam / Montreal – Airbus SE (EADSY), the Government of Québec and Bombardier Inc. (BBD-B.TO) have agreed upon a new ownership structure for the A220 program, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately.
This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 – three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.
This new agreement underlines the commitment of Airbus and the Government of Québec to the A220 programme during this phase of continuous ramp-up and increasing customer demand. Since Airbus took majority ownership of the A220 programme on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.
“This agreement with Bombardier and the Government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore it extends our trustful partnership with the Government of Québec. This is good news for our customers and employees as well as for the Québec and Canadian aerospace industry,” said Airbus Chief Executive Officer Guillaume Faury. “I would like to sincerely thank Bombardier for the strong collaboration during our partnership. We are committed to this fantastic aircraft programme and we are aligned with the Government of Québec in our ambition to bring long-term visibility to the Québec and Canadian aerospace industry.”
“I am proud that our government was able to reach this agreement. We have succeeded in protecting paying jobs and the exceptional expertise developed in Québec, despite the major challenges we faced in this regard when we took office. We have consolidated the government’s position in the partnership, while respecting our commitment not to reinvest in the program. By opting to strengthen its presence here, Airbus has chosen to focus on our talents and our creativity. The decision of an industrial giant like Airbus to invest more in Québec will help attract other world-class prime contractors,” the Premier of Québec, François Legault, stated.
“This agreement is excellent news for Québec and its aerospace industry. The A220 partnership is now well established and will continue to grow in Québec. The agreement will allow Bombardier to improve its financial situation and Airbus to increase its presence and footprint in Québec. It’s a win–win situation for both the private partners and the industry,” pointed out Pierre Fitzgibbon, Minister of the Economy and Innovation.
With this transaction, Bombardier will receive a consideration of $591M from Airbus, net of adjustments, of which $531M was received at closing and $60M to be paid over the 2020-21 period. The agreement also provides for the cancellation of Bombardier warrants owned by Airbus, as well as releasing Bombardier of its future funding capital requirement to Airbus Canada.
“This transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aerospace,” said Alain Bellemare, President and CEO Bombardier, Inc. “We are incredibly proud of the many achievements and tremendous impact Bombardier had on the commercial aviation industry. We are equally proud of the responsible way in which we have exited commercial aerospace, preserving jobs and reinforcing the aerospace cluster in Québec and Canada. We are confident that the A220 program will enjoy a long and successful run under Airbus’ and the Government of Québec’s stewardship.”
The single aisle market is a key growth driver, representing 70 percent of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the A220 is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats).
As part of the agreement, Airbus has acquired the Airbus A220 and A330 work package production capability from Bombardier in Saint-Laurent, Québec. These production activities will be operated in the Saint Laurent site by Stelia Aéronautique Saint Laurent Inc., a newly created subsidiary of Stelia Aerospace, which is a 100 percent Airbus subsidiary.
Stelia Aéronautique Saint-Laurent will continue the production of the A220 cockpit and aft fuselage production, as well as A330 workpackages, for a transition period of approximately three years at the Saint-Laurent facility. A220 workpackages will then be transferred to the Stelia Aerospace site in Mirabel to optimize the logistical flow to the A220 Final Assembly Line also located in Mirabel. Airbus plans to offer all current Bombardier employees working on the A220 and A330 work packages at Saint-Laurent opportunities around the A220 programme’s ramp-up, ensuring know-how retention as well as business continuity and growth in Québec.
At the end of January 2020, 107 A220 aircraft were flying with seven customers on four continents. In 2019 alone, Airbus delivered 48 A220s, with the further ramp-up to be continued.
FILE PHOTO: A traffic light is seen in front of a logo of General Electric at the company’s plant in Birr
(Reuters) – The U.S. government is considering whether to stop General Electric Co from continuing to supply engines for a new Chinese passenger jet, according to people familiar with the matter, casting uncertainty over China’s efforts to enter the civil aviation market.
The potential restriction on the engine sales – possibly along with limits on other components for Chinese commercial aircraft such as flight control systems made by Honeywell International Inc – is the latest move in the battle between the world’s two largest economies over trade and technology.
The issue is expected to come up at an interagency meeting about how strictly to limit exports of U.S. technology to China on Thursday and at another meeting with members of President Donald Trump’s Cabinet set for Feb. 28, sources said.
The White House and the U.S. Commerce Department, which issues licenses for such exports, declined to comment, as did a GE spokeswoman. The departments of Defense, State, Energy and Treasury did not respond to requests for comment.
For years, the United States has supported American companies’ business with China’s budding civil aviation industry.
The government has provided licenses that allow those companies to sell engines, flight control systems and other components for China’s first large commercial aircraft, the COMAC C919. The narrow-body jet has already engaged in test flights and is expected to go into service next year. COMAC is an acronym for Commercial Aircraft Corp of China Ltd.
But the Trump administration is weighing whether to deny GE’s latest license request to provide the CFM LEAP-1C engine for the C919, people familiar with the matter said, though GE has received licenses for the LEAP engines since 2014 and was last granted one in March 2019.
The CFM LEAP engine is a joint venture between GE and France’s Safran Aircraft Engines. The proposal to halt the deliveries of the engines was also reported on Saturday by the Wall Street Journal.
Safran did not immediately respond to a request for comment, and French government officials could not be reached for comment.
Aside from aircraft engines, flight control systems are up for discussion at the February meetings. Honeywell International has received licenses to export flight control systems to COMAC for the C919 for about a decade, and one was approved in early 2020, according to a person familiar with the matter.
But future permission for such sales for COMAC’s passenger aircrafts may be up for debate. Honeywell also has been seeking a license for flight control technology to participate in the development of the C929, China’s planned wide-body jet venture with Russia, the person said.
The flight control system operates moving mechanical parts, such as the wing flaps, from the cockpit.
A spokeswoman for Honeywell declined to comment.
An aerospace trade group official said his organization would like to weigh in on any policy shifts.
“If there are any changes, we would hope they would engage with us, as they’ve done before,” said Remy Nathan, vice president for international affairs at the Aerospace Industries Association.
At the heart of the debate over a possible crackdown on the sale of U.S. parts to China’s nascent aircraft industry is whether such shipments would fuel the rise of a serious competitor to U.S.-based Boeing Co or boost China’s military capabilities.
People familiar with the matter said some administration officials are concerned the Chinese could reverse engineer some items, though others say an abundance of LEAP engines in China has not brought that about to date.
If the United States were to move ahead with the measure, one person familiar with the matter said, China could retaliate by ordering more planes from Airbus SE , rather than crisis-hit Boeing, which relies on China for a fourth its deliveries.
The Trump administration’s meetings about technology issues also are set to include a discussion of whether to impose further restrictions on suppliers to Huawei Technologies, the world’s largest telecommunications equipment maker, which is on a U.S. trade blacklist.
(Reporting by Karen Freifeld and Alexandra Alper; additional reporting by Tim Hepher in Paris; editing by Jonathan Oatis)
FILE PHOTO: China’s home-grown C919 passenger jet taxis after landing on its maiden flight at the Pudong International Airport in Shanghai
WASHINGTON (Reuters) – The U.S. government’s decision to raise tariffs on European-built aircraft will hit U.S. airlines already facing a shortage of aircraft and complicate efforts to reach a negotiated settlement with the European Union, Airbus <AIR.PA> said.
The European planemaker said it would continue discussions with its U.S. customers to “mitigate effects of tariffs insofar as possible” and hoped the U.S. Trade Representative’s office would change its position.
“USTR’s decision ignores the many submissions made by U.S. airlines, highlighting the fact that they – and the U.S. flying public – ultimately have to pay these tariffs,” the company said in a statement.
(Reporting by Andrea Shalal; Editing by Daniel Wallis)
Starting from February 10th to April 29th, EVA will cut down its cross-strait route network to five destinations in China in compliance with Taiwan government’s epidemic prevention policy. Please refer to the details.
In compliance with Taiwan government’s epidemic prevention policy, EVA Air is reducing flights to / from Mainland China. Starting from February 10th to April 29th, EVA will cut down its cross-strait route network to five destinations in China, including Beijing, Shanghai Pudong, Shanghai Hongqiao, Xiamen and Chengdu.
EVA is working on the flight cancellation for February and updating the information on its website. The schedule changes for March and April will be announced next week.
For the latest schedule update as well as related rules of ticket refund, itinerary change and service charge exemption, passengers can visit EVA’s dedicated webpage for the flights affected by the novel coronavirus outbreak:
TOKYO (Reuters) – Japan’s Mitsubishi Heavy Industries said on Thursday it will book a 496.4 billion yen ($4.5 billion) special loss after its aircraft unit delayed the delivery of its SpaceJet regional jet for at least another year until after March 2021.
The sixth delay announced by Mitsubishi Aircraft is a fresh blow to Japan’s commercial jet ambitions and could stretch Mitsubishi Heavy Industries’ finances.
The company cited the special loss as one reason for wiping out a forecast for operating profit of 220 billion yen in the business year ending March 31.
The new postponement also means an aircraft that Mitsubishi Heavy had planned to bring to market in 2013, will have to compete against a new generation of regional jets built by Brazil’s Embraer SA <ERJ>.
Japan’s biggest airline by revenue, ANA Holdings Inc., is now to take the first delivery of the jet sometime after March 2021.
Mitsubishi Heavy, which builds products ranging from nuclear reactors and ships to rockets and industrial machinery, has traditionally relied on stronger units to support weaker businesses.
“We use cashflow and borrowing to finance our projects and going forward the SpaceJet development will require further funds,” a spokesman for Mitsubishi Heavy said. The company, he added, had no plan at the moment to raise capital for aircraft development.
Government funding would not be an option for Japan’s biggest heavy machinery maker even though the SpaceJet is backed by the government because doing so would contravene World Trade Organization (WTO) rules banning taxpayer subsidies.
A spokeswoman for Mitsubishi Aircraft declined to say how much development of the SpaceJet has cost so far.
The company on Thursday said it had appointed Takaoki Niwa, the head of its U.S. operations, as its new president, replacing Hisakazu Mizutani, who will become chairman.
(Reporting by Tim Kelly; Editing by Kim Coghill and Christopher Cushing)
