BRUSSELS
(Reuters) – British Airways owner IAG is unlikely to renew its interest
in Norwegian Air after ruling out a new bid for the Scandinavian
carrier earlier in the year, but “never say never”, IAG Chief Executive
Willie Walsh said on Wednesday.
“I’d
never say never, but I think it’s unlikely,” Walsh told reporters on
the sidelines of the Airlines for Europe summit in Brussels.
IAG
sold its stake in Norwegian when it ended its interest in the airline,
which competes with IAG’s low-cost long-haul Level brand, earlier this
year.
“If there was a case that we might have done that (renewed our interest), we probably would have retained the shares in Norwegian,” he added.
Norwegian Air Shuttle; 737MAX-8; Air to Air; K66675
Asked if Level could expand into Scandinavia, Walsh said: “It could, ultimately.”
“There
are several significant markets that are underserved from a long-haul
point of view and can be best served by a low-cost model,” he said.
He
also said that, although he was still not interested in buying A380s,
those who wanted to approach him with offers after Airbus said it was
scrapping production of the superjumbo should do so.
“I’m
not looking to buy A380s. If there are people looking to sell them,
they should probably approach us, because we would be one of the few
people who might be interested. But I’m not looking to buy,” he said.
“Let’s see what happens.”
(Reporting by Alistair Smout; Editing by Jason Neely and Mark Potter)
HONG KONG/SINGAPORE (Reuters) – Hong Kong flagship carrier Cathay Pacific Airways Ltd said on Tuesday it is in “active discussions” about an acquisition involving budget airline Hong Kong Express Airways Ltd, although an agreement has yet to be reached.
Such
a deal would give Cathay exposure to the growing budget-travel market
at a time when a lack of slots at Hong Kong International Airport has
constrained its ability to follow peers like Singapore Airlines Ltd and
Qantas Airways Ltd and set up its own budget brand.
The
Hong Kong carrier has instead shifted some destinations from its main
brand to its regional carrier, Cathay Dragon, as part of a
transformation plan designed to cut costs and increase revenue. It has
ordered 32 Airbus SE A321neos for Cathay Dragon.
Cathay
said it had decided to go public about the discussions in response to
media reports suggesting it may be in talks to acquire shares in Hong
Kong Express Airways Ltd and full-service sister carrier Hong Kong
Airlines Ltd from cash-strapped Chinese conglomerate HNA Group Co Ltd.
It
did not detail the potential value of the transaction, nor the size of
the stake it would hold. It said it would issue an additional statement
when appropriate.
An analyst last year estimated to Reuters that HK Express could be worth about $300 million.
HNA and HK Express did not immediately respond to a request for comment.
A
person with knowledge of the matter said the companies appeared close
to reaching an agreement and noted Cathay’s parent Swire Pacific Ltd had
historically taken majority stakes when making investments.
Cathay is not interested in Hong Kong Airlines because it has both similar routes and full-service positioning, the person said.
A
second person with knowledge of the matter said Cathay had signed an
exclusivity period for discussion but other parties remained interested
in HK Express if a deal could not be reached.
Both sources spoke on the condition of anonymity as discussions are confidential.
ANTITRUST
Given Cathay’s dominance of Hong Kong’s aviation market, a deal could attract scrutiny from the competition regulator.
Some
analysts have also expressed doubts about the likely benefits of any
deal. Daiwa analyst Kelvin Lau said he did not see much value from the
acquisition as the two airlines flew similar routes, but also because
Cathay would need to undertake significant reform to add a budget wing.
Jefferies analyst Andrew Lee however said in a note to clients it would be “positive for Cathay Pacific” as it would give the airline greater access to a different passenger segment in the low-cost market.
FLYING HIGH
News
of Cathay’s interest in HK Express comes just weeks after Hong Kong’s
flagship carrier projected its annual profit at more than double analyst
estimates, sending its shares surging nearly 9 percent.
Shares
of Cathay have risen more than 19 percent so far this year, compared
with an 8 percent fall in 2018. The airline’s shares jumped more than 3
percent on Tuesday morning.
Cathay has faced repeated questions from investors over the last few years about its failure to set up a budget carrier.
Chief
Executive Rupert Hogg has said it would be difficult to do so until a
third runway was completed at Hong Kong International Airport in 2024,
opening up more slots.
“Our
home-based airport is full at the moment, or largely full, and so it’s
not a perfect place to develop a model from scratch,” he told CAPA
Centre for Aviation last May.
HK
Express operates a fleet of 25 A320 family aircraft to regional
destinations around Asia, according to plane tracking website
FlightRadar24.
Embattled
HNA Group is more than a year into the process of unwinding a $50
billion acquisition spree that at its peak netted the company stakes in
banks, fund managers, hotels, property and airlines, among other assets.
(Reporting by Donny Kwok in Hong Kong and Jamie Freed in Singapore; Additional reporting by Kane Wu in Hong Kong; Editing by Anne Marie Roantree and Stephen Coates)
LONDON
(Reuters) – Rolls-Royce dropped out of the race to power Boeing’s
planned mid-market aircraft on Thursday, saying it did not want to risk
more disruption for its airline customers by rushing out a product
without extensive testing.
The
move strengthens a leading position in the high-profile contest already
held by a transatlantic venture involving Rolls’ arch-rival General
Electric, industry sources said,
Britain’s
Rolls-Royce, which makes engines for large civil aircraft and military
planes, wants to avoid a repeat of the problems with its Trent 1000
engine that powers Boeing’s Dreamliner 787.
Chief
Executive Warren East said he had taken the “very difficult decision”
to withdraw from the Boeing competition because it couldn’t make the
development of its new UltraFan architecture fit the timetable for the
aircraft.
Boeing
has proposed launching a new mid-sized jetliner to fill a gap between
the narrow and wide-body aircraft, with airline operations beginning in
2025.
“If
you enter into service with an engine that is not sufficiently mature,
then you are almost inevitably going to run into lots of in-service
issues, lots of customer disruption and lots of incremental costs,” East
told reporters.
He
said, however, that Rolls was still committed to UltraFan, a major new
fuel-efficient architecture that will power wide-body jets towards the
back end of the next decade.
CFM
International — a joint venture between GE and France’s Safran — as
well as Pratt & Whitney are also potential suppliers for the new
Boeing jet.
Pratt
& Whitney recently re-entered the civil market for narrow-body jets
and wants to expand to larger ones, but has been hit by industrial
problems.
UNHAPPY CUSTOMERS
In
the nearer term, Rolls is still dealing with the costs and disruption
of fixing Trent 1000 engines caused by the poor durability of
components.
“On
this issue we have indeed turned the corner,” East said, although he
added that the level of customer disruption was still unacceptable.
It
raised the Trent 1000 charge to 790 million pounds from 554 million
pounds at the half year, contributing to a full-year operating loss of
1.16 billion pounds ($1.54 billion), and allocated another 100 million
pounds in cash to the problem.
The issue has damaged Rolls’ standing with its big customers.
British
Airways owner IAG said on Thursday it would order 18 Boeing 777-9s,
rather than a competing package from Airbus that industry sources said
included the A350, which is powered by Rolls.
“I
have been frustrated, largely with the performance of Rolls-Royce, not
so much with Airbus,” IAG Chief Executive Willie Walsh said.
East, however, said Rolls had an excellent relationship with BA and put the choice down to IAG’s fleet requirements.
“I am totally confident we will be continuing to be a major partner with BA for many, many years into the future,” he said.
East
said that aside from Trent 1000, the rest of the business was
performing well, although the large engine deliveries of 480 fell short
of its 500 target, in part due to the challenge of stepping up Trent
7000 production.
Shares in Rolls were trading down 3.4 percent at 950 pence, underperforming a 1 percent drop in the FTSE 100.
The
company reported a 8 percent rise in underlying revenue to 15.1 billion
pounds and a doubling of operating profit to 616 million pounds.
However,
changes in Rolls-Royce’s dollar-pound hedge book had a significant
impact on its results, and were in part responsible for a reported
full-year loss of 2.9 billion pounds.
(Reporting by Paul Sandle, Additional reporting by Tim Hepher; Editing by Edmund Blair and Keith Weir)
Boeing and International Airlines Group, the parent company of
British Airways, announced February 28, 2019 the airline has committed
to purchasing up to 42 777X airplanes, including 18 firm orders and 24
options. British Airways joins a group of leading carriers that have
selected the new 777-9, which will debut next month as the largest and
most efficient twin-engine passenger jet in the world.
The commitment, valued at up to $18.6 billion at list prices, will be reflected on Boeing’s Orders and Deliveries website once it is finalized.
“The new 777-9 is the world’s most fuel efficient longhaul aircraft
and will bring many benefits to British Airways’ fleet. It’s the ideal
replacement for the 747 and its size and range will be an excellent fit
for the airline’s existing network,” said Willie Walsh, IAG chief
executive. “This aircraft will provide further cost efficiencies and
environmental benefits with fuel cost per seat improvements of 30 per
cent compared to the 747. It also provides an enhanced passenger
experience”.
British Airways has been modernizing its fleet – one of the largest in the airline industry – to more efficiently serve its extensive global route network. In recent years, the airline has introduced the super-efficient 787 Dreamliner family to replace its medium-sized widebody jets. The new 777-9 will replace British Airways’ larger widebody airplanes, mainly the four-engine 747 jumbo jet.
In ordering the 777-9, British Airways extends a long-running
relationship with the popular 777 family. The airline is one of the
largest 777 operators with a fleet of nearly 60 of the long-range jet.
The airline last year committed to four more 777-300ER (Extended Range)
jets via operating lease.
The 777-9 is larger and slightly wider than current 777s with the ability to comfortably sit 400-425 passengers in a standard two-class cabin. Powered by 787 Dreamliner technologies, an all-new composite wing, and other enhancements, the 777-9 offers airlines 12 percent lower fuel consumption than competing airplanes. The 777-9 can also fly farther than its predecessors with a standard range of 7,600 nautical miles (14,075 kilometers).
LONDON,
Feb 28 (Reuters) – British Airways owner IAG said it expected earnings
in 2019 to be flat after it weathered the impact of rising fuel costs
and air traffic control disruption to meet expectations for its 2018
results on Thursday.
IAG
reported a 9.5 percent rise in operating profit before exceptional
items for the year to December 31 to 3.23 billion euros, but said there
would be no growth in 2019 as earnings would be in line with the
previous year’s results.
“This
was a very good performance despite three significant challenges: fuel
prices increasing 30 percent, considerable Air Traffic Control
disruption and an adverse foreign exchange impact of 129 million euros,”
Chief Executive Willie Walsh said.
IAG said that passenger revenue rose 6.2 percent across the group, with passenger unit revenue up 2.4 percent.
In
a separate statement, IAG said it would order 18 Boeing 777-9s and
options for 24 more for British Airways to replace 14 747-400s and four
777-200s between 2022 and 2025.
(Reporting by Alistair Smout, editing by James Davey)
International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United States, and rest of the world. The company operates under the British Airways, Iberia, Vueling, LEVEL, IAG Cargo, Avios, and Aer Lingus brands.
HANOI, Vietnam, Feb. 27, 2019 /PRNewswire/ — Boeing [NYSE: BA] and Bamboo Airways today confirmed an order for 10 787-9 Dreamliners valued at $3 billion
according to list prices. The order for the super-efficient and
longest-range member of the Dreamliner family was unveiled during a
signing ceremony in Hanoi, witnessed by U.S. President Donald Trump and General Secretary and President of Vietnam Nguyen Phu Trong.
“We are excited to be adding the new 787 Dreamliner to our growing fleet,” said Mr. Trinh Van Quyet, Chairman of FLC Group and owner of Bamboo Airways. “Our long-term vision is to connect Vietnam with key markets in Asia, Europe and North America
and the Dreamliner will enable us to launch these long-haul operations.
The 787’s superior operating economics and efficiency, as well as the
passenger pleasing interior of the Dreamliner, will allow us to
successfully grow our business while enabling us to better serve our
customers.”
This order was previously unidentified on Boeing’s Orders & Deliveries website.
Bamboo Airways, a startup airline founded in 2017, began commercial
operations in January, offering flights linking the capital of Hanoi and Ho Chi Minh City with cities in Vietnam.
The airline plans on offering up to 40 domestic routes in 2019.
Additionally, Bamboo is preparing to launch international service to Thailand, South Korea, Singapore, Japan, Taiwan and Australia, before broadening service to other destinations in Asia, Europe, and North America.
“The 787 Dreamliner’s unmatched efficiency, range and flexibility
make it the perfect airplane for Bamboo Airways to achieve its
long-range ambitions. We are excited to advance the partnership between
Boeing and Bamboo Airways and we look forward to helping them connect Asia with Europe, North America and beyond,” said Kevin McAllister, president and CEO of Boeing Commercial Airplanes.
The 787 Dreamliner family allows airlines to fly long ranges while
reducing fuel costs by more than 20 percent compared to previous
widebody jets. The Dreamliner’s superior efficiency and range have
allowed airlines to open more than 210 new non-stops routes around the
world since it entered service.
At 63 meters (206 feet), the 787-9 can fly 290 passengers, in a
typical two-class configuration, up to 7,635 nautical miles (14,140
kilometers). The airplane is 6 meters longer than the original
Dreamliner and is capable of carrying more passengers and flying
farther.
The 787 Dreamliner is the fastest-selling widebody airplane in
history with more than 1,400 orders from 75 customers since its launch.
Nearly 800 Dreamliners have entered service around the world, helping
airlines save 33 billion pounds of fuel.
Bamboo Airways is wholly-owned by the FLC Group, a Vietnamese multi-industry company, focusing on aviation, real estate, resorts, farming, and golf.
CHICAGO
(Reuters) – United Continental Holdings is applying for six of 12 new
slots open to U.S. carriers at Tokyo’s Haneda International Airport in a
push to increase daily nonstop flights to the Japanese capital ahead of
the 2020 Olympic Games and beyond.
Haneda
is located closer to downtown Tokyo than the capital’s other
international airport Narita, and flies to more destinations throughout
Japan, making it attractive for both business travelers and tourists.
Thursday
is the deadline for applications to the U.S. Department of
Transportation for the 12 extra Haneda slots that Japan has agreed to
allot to U.S. airlines.
The
extra slots for U.S. airlines were unlocked after Japan reached an
agreement with the U.S. Air Force to open up new flight paths around a
nearby U.S. air base, a move needed to boost Haneda movements in the
run-up to the 2020 Olympics in Tokyo.
Completion
of an aviation agreement between the U.S. and Japanese governments is
expected later this year, United said. Flights are expected to begin
service by the summer of 2020, once the U.S. Department of
Transportation awards the slots.
U.S. carriers American Airlines Group, Delta Air Lines and Hawaiian Airlines are also expected to bid.
United
wants to fly to Haneda from its hubs at Newark Liberty, Chicago O’Hare,
Washington Dulles, Los Angeles International, Houston George Bush and
Guam. The flights from Newark, Los Angeles and Guam would be new routes
operated by Boeing 777 and 787 aircraft, while the flights from the
other three hubs would be shifted from Narita.
Under
the proposal, United said it would connect to 37 destinations in Japan
from Haneda with its joint venture partner All Nippon Airways (ANA).
Industry
analysts say a recent sale of Boeing 737 MAX aircraft to ANA may have
weighed in the decision to grant more flying rights for U.S. airlines
into Haneda, which airlines compete for aggressively due to the
airport’s proximity to the Japanese capital, a major center for global
commerce.
(Reporting by Tracy Rucinski; Editing by Chizu Nomiyama)
A United Airlines plane with the Continental Airlines logo on its tail, sits at a gate at O’Hare International airport in Chicago October 1, 2010. REUTERS/Frank Polich/File Photo
Feb
21 (Reuters) – India’s Jet Airways Ltd has approved a rescue deal by
the lenders of the carrier reeling under a net debt of 72.99 billion
rupees ($1.02 billion), but doubts linger over whether the bailout would
help it clear dues on time.
The resolution plan will make Jet’s lenders its largest shareholders and fix a near 85 billion rupee funding gap.
Jet has been steadily losing market share to its rival and low-cost carrier IndiGo, which is owned by InterGlobe Aviation Ltd.
The airline has also seen its share price suffer as it navigated through several negotiations with its lenders and shareholders.
Oct 18 – Report says Indian conglomerate Tata Group is in talks to buy stake in Jet. Jet calls report “speculative”
Oct 30 – U.S.-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways
Nov 5 – Report says Tata aims to buy the 51 percent stake in the airline owned by Naresh Goyal, and Etihad Airways’ 24 percent stake, and merge Jet with Vistara
Nov 12 – Jet posts third straight quarterly loss
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
Nov 15 – Shares surge nearly 25 percent following reports that the debt-laden airline was nearing a rescue deal with Tata Sons; another report says the Indian government asked Tata to explore buying Jet
Nov 16 – Tata Sons says discussions on Jet is preliminary and no proposal has been made
Nov 22 – Independent director Ranjan Mathai resigns, citing rising pressure from other commitments
Dec 3 – Jet says it will stop providing free meals to most domestic economy class passengers from January
Dec 5 – Jet and Etihad Airways have been holding rescue talks with Jet’s bankers, sources tell Reuters
Dec 6 – Jet tells its pilot union it will clear all salary dues by April, a source tells Reuters
Dec 14 – Goyal’s penchant for control has come up as a major obstacle as the airline tries to negotiate a rescue deal, several people who have worked closely with him or known him over the years tell Reuters
Jan 2, 2019 – The airline says it has delayed payment to a consortium of Indian banks, led by SBI; ICRA cuts rating again
Jan 10 – Jet proposes to creditors that it will catch up with debt payments in arrears by September, and from April will meet debt payments as they come due, according to a document seen by Reuters
Jan 11 – Some aircraft lessors were prompted to explore taking back aircraft from Jet, people familiar with the matter told Reuters. Etihad is not “in any position to sink new equity into Jet at this juncture”, says a person familiar with Etihad’s position.
Jan 14 – Report states Goyal is likely to step down from the board and give up majority control
Jan 16 – TV channel reports that Etihad offered to buy Jet shares at a 49 percent discount and immediately release $35 million.
Jan 17 – Top creditor SBI says Jet’s lenders are considering a plan to resolve its debt issues, amid further reports that Goyal is willing to invest 7 billion rupees in the airline and pledge all his shares but wants to retain a 25 percent stake.
Jan 24 – India capital markets regulator says it has no “view” on relaxing norms for a Jet bailout
Jan 25 – Etihad appoints Alvarez & Marsal to conduct due diligence on Jet, sources tell Reuters
Jan 30 – Jet denies its aircraft had been grounded by GE Capital Aviation Services
Feb 1 – Jet agrees to most conditions set by Etihad Airways for a lifeline, a report says
Feb 8 – Airline grounds four aircraft after failing to make payments to lessors
Feb 14 – Jet’s board approves a rescue deal which will make its lenders its largest shareholders and fix a near 85 billion rupee funding gap
Feb 15 – Jet is seeking an $840 million bailout from shareholders and a state-backed fund, Business Television India reports
Feb 21 – International lessors have grounded more Jet Airways planes prior to potentially moving them out of India, as scepticism builds whether a state-led bailout of the carrier can clear their dues on time, sources tell Reuters
($1 = 71.2325 Indian rupees)
(Compiled by Arnab Paul and Chris Thomas in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)
SAVANNAH, Ga., Feb. 20, 2019
/PRNewswire/ — Gulfstream Aerospace Corp. today announced it will
showcase the clean-sheet, record-breaking Gulfstream G500 along with the
class-leading, super-midsize Gulfstream G280 at the 2019 Aviation
Africa Summit & Exhibition from Feb. 27-28 in Kigali, Rwanda.
Gulfstream’s exhibition will be at the Radisson Blu Hotel &
Convention Centre, and the aircraft will be on static display at Kigali International Airport.
“Gulfstream is committed to customers in sub-Saharan Africa and growing business aviation in the region,” said Mark Burns, president, Gulfstream. “Rwanda
has made great investments in business aviation, and we are proud to
support those efforts with our presence and static display in Kigali.
Whether flying from country to country or intercontinentally, the G500
and G280 offer operators ideal options for this region.”
The
award-winning G500 can fly 5,200 nautical miles/9,630 kilometers at its
long-range cruise speed of Mach 0.85 and can easily connect Kigali to London at Mach 0.90 or Kigali to Singapore at Mach 0.87. When it entered service in September 2018,
the G500 had already achieved 22 city-pair records around the world and
currently holds a total of 32 city-pair records. The G500 that will be
on display at Aviation Africa is in service with Qatar Airways’ Qatar
Executive fleet.
The high-performing and agile G280 can fly 3,600 nm/6,667 km at Mach 0.80, and can travel nonstop from Kigali to Dubai, United Arab Emirates, at Mach 0.84 or Kigali to Bangalore, India,
at Mach 0.80. The aircraft can easily access smaller airports, reach
high altitudes quickly and offers excellent takeoff and landing
performance.
NOTE TO EDITORS
Gulfstream Aerospace Corporation, a wholly owned subsidiary of General Dynamics (GD),
designs, develops, manufactures, markets, services and supports the
world’s most technologically advanced business-jet aircraft. Gulfstream
has produced more than 2,800 aircraft for customers around the world
since 1958. To meet the diverse transportation needs of the future,
Gulfstream offers a comprehensive fleet of aircraft, comprising the
Gulfstream G280™, the Gulfstream G550™, the Gulfstream G500™, the Gulfstream G600™, the Gulfstream G650™ and the Gulfstream G650ER™. We invite you to visit our website for more information and photos at www.gulfstreamnews.com.
OSLO
(Reuters) – Norwegian Air’s shareholders overwhelmingly endorsed on
Tuesday the lossmaking airline’s plan for a deeply discounted cash call
to help bolster its finances, Chairman Bjoern Kise said.
Norwegian
Air said on Jan. 29 it would raise 3 billion Norwegian crowns ($348
million) in a rights issue, just days after British Airways owner IAG
ruled out a bid for the budget carrier.
Norwegian
is trying to replicate on transatlantic flights the low-cost model that
dominates the short-haul market, exemplified by the likes of Ryanair
and easyJet, but is struggling to make the business profitable.
The
European airline sector faces overcapacity and high fuel costs, with
several operators going out of business, the latest being British-based
Flybmi which filed for bankruptcy on Sunday.
In
the rights issue, Norwegian’s owners will get the right to buy two new
shares at 33 crowns each for every share they own, compared with
Monday’s closing price of 93 crowns.
Holders of more than 99 percent of Norwegian’s equity backed the proposal at a meeting on Tuesday, company officials said.
By
selling new shares far below the market price, Norwegian will boost the
value of each of the purchasing rights, which can be bought and sold.
This
in turn allows Norwegian Air Chief Executive Bjoern Kjos and his
business partner, the group’s chairman, to sell some of their
subscription rights and reinvest the proceeds in new shares, thus
limiting the dilution of their joint stake which stands at 24.66
percent.
Norwegian said last month that billionaire investor John Fredriksen was among those who had agreed to take part in the issue.
($1 = 8.6295 Norwegian crowns)
(By Terje Solsvik, Editing by Nerijus Adomaitis and David Holmes)
