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Amazon’s Rising Air Shipments Fly in the Face of Climate Plan

LOS ANGELES (Reuters) – Amazon.com Inc <AMZN> Chief Executive Jeff Bezos has plans to slash greenhouse gas emissions from the online retailer’s delivery operations.

Yet the company’s use of airplanes – the most climate-damaging mode of transportation – is on the rise, according to data provided to Reuters.

Amazon Air’s U.S. volume has risen steadily since its 2016 launch, according to an analysis of Department of Transportation data by Cargo Facts Consulting https://www.cargofactsconsulting.com, a Luxembourg-based advisory firm with a global staff and more than four decades of history.

It crunched data from Air Transport Services Group Inc <ATSG> and Atlas Air Worldwide Holdings <AAWW>. Both supply planes and pilots for Amazon Air.

In July, Amazon Air flew 136 million lbs of goods in the United States, according to the data. That was up 29% from the year earlier and just 9 million lbs short of December 2018, when the peak holiday shipping season was in full swing.

For a graphic on more Amazon Air flights, click the link below:

https://fingfx.thomsonreuters.com/gfx/editorcharts/AMAZON-AIRPLANES/0H001QXH999X/eikon.png

Bezos has said Amazon will cut its use of airplanes as it builds more local warehouses and fills them with goods that it can deliver to customer doorsteps in one day, or even one hour.

But for the time being, Amazon’s air shipments are climbing as it speeds up deliveries to lure customers and pressure rivals like Walmart Inc <WMT> and Target Corp <TGT>.

In April, Amazon started offering no-minimum purchase, one-day free shipping to members of its Prime subscription service.

In the latest quarter, it saw delivery costs soar, and warned the holiday quarter would see costs for one-day shipping alone spike to $1.5 billion.    

The Seattle e-retailer, which sends 10 billion packages a year, declined to say what percentage of its shipments travel by plane or give specific examples of how the latest drive to shave time off its standard two-day shipping affected air transport.

Last month, Amazon said its CO2 emissions in 2018 were 44.4 million metric tons and set a goal to be net carbon neutral by 2040.

“We expect the percent of total shipments to customers utilizing air transportation to reduce from year to year as we significantly increase one and same day shipments,” Amazon spokesman Sam Kennedy said, when asked about Cargo Facts’ data.

DELIVERY WARS

A standard package flown on a plane in the United States creates an estimated 6-10 times more CO2 emissions than one traveling by truck, said Jacques Leonardi, a senior research fellow in freight, logistics and sustainable distribution at the University of Westminster in London.

Amazon Air leases 47 planes and is expected have 50 by the end of the year. It operates roughly 110 daily flights in the United States and around 20 per day in Europe, according to Cargo Facts.

In June, shortly after FedEx Corp <FDX> said its planes would stop shuttling packages for the online retailer, Amazon Air announced plans to have 70 planes on lease by 2021.

But Amazon says it is getting closer to customers with an expanding network of well-stocked warehouses. Those local fulfillment centers underpin the company’s one-day and same-day delivery services.

In a news release issued Monday, Amazon said those options were “better for the planet” because there aren’t many miles in the trip to customer doorsteps.

Because those time windows are so tight, “you are eliminating the possibility of air transportation,” Amazon’s Bezos said in September. “Even though it’s counterintuitive, the fact of the matter is that shorter delivery times end up being less carbon-intensive than longer delivery times.”

Products from most of Amazon’s 158 U.S. distribution centers can be shipped to 65% of the population in one day, said Marc Wulfraat, president of supply chain consultancy MWPVL International.

Items like footwear, jewelry, auto parts and niche electronics come from 23 distribution centers that span the country – and will likely need to be moved by air for next-day delivery, Wulfraat said.

Amazon also depends on United Parcel Service Inc <UPS> for air shipments. The Atlanta-based delivery company has seen a bump in that business since Amazon began expanding free one-day delivery this spring, UPS executives and analysts said.

Domestic next day air volume at UPS surged more than 30% in the second quarter and was up nearly 24% in the third quarter – fueled by faster e-commerce shipping speeds and rival FedEx’s breakup with Amazon this summer.

“It’s not all from FedEx,” said Satish Jindel, the founder of logistics advisory firm ShipMatrix, noting that express and deferred air services revenue at UPS surged $852 million in the second and third quarters.

Amazon’s business was worth about $900 million to FedEx prior to their split, Jindel said. Express, which includes air shipments, accounted for roughly $540 million of that, he said.

(Reporting by Lisa Baertlein in Los Angeles; Editing by Mark Potter)

Philippine Cebu Air Signs Airbus Aircraft Deal for $4.8 Billion

  • Cebu Air finalises order for 16 Airbus jets
  • Expected to cut cost per seat, fuel emission
  • A330neo’s to be delivered between 2021 and 2024

Nov 4 (Reuters) – Philippines’ Cebu Air Inc has finalised the purchase of 16 long-range Airbus A330 neo jets worth $4.8 billion at list prices, the airline said on Monday.

The budget carrier, which operates 74 aircraft, mostly Airbus A320s, under the brand Cebu Pacific, is turning to larger and fuel-efficient jets for expansion, despite limited slots at the main gateway in the Philippine capital.

Scheduled to be delivered between 2021 and 2024, the 16 A330neo aircraft will be deployed on routes in the Philippines, Asia, Australia and the Middle East, Cebu Air said in a statement.

Reuters first reported that Cebu Air was close to buying A330neo or Boeing 787 aircraft in May.

In June, Cebu Air signed a signed a memorandum of understanding to acquire 16 A330neos, 10 A321XLRs and five A320neos, worth about $6 billion in total at list prices, during the Paris Air Show.

The new Airbus aircraft will cut fuel emissions and costs per seat, said Cebu Air Chief Executive Lance Gokongwei, adding that it would also help maximise seating capacity and the airline’s valuable slots in Manila and other major Asian cities.

(Reporting by Neil Jerome Morales; Editing by Clarence Fernandez)

Pentagon And Lockheed Martin Reach Agreement Reducing F-35A Cost By 12.8 Percent

U.S. Air Force F-35A Lightning II Joint Strike Fighters from the 58th Fighter Squadron, 33rd Fighter Wing, Eglin AFB, Fla. perform an aerial refueling mission with a KC-135 Stratotanker from the 336th Air Refueling Squadron from March ARB, Calif., May 14, 2013 off the coast of Northwest Florida. The 33rd Fighter Wing is a joint graduate flying and maintenance training wing that trains Air Force, Marine, Navy and international partner operators and maintainers of the F-35 Lightning II. (U.S. Air Force photo by Master Sgt. Donald R. Allen/Released)

FORT WORTH, Texas, Oct. 29, 2019 /PRNewswire/ — The F-35 Joint Program Office and Lockheed Martin (NYSE: LMT) finalized a $34 billion agreement for the production and delivery of 478 F-35s at the lowest aircraft price during the history of the Program. This contract includes all U.S., International Partners and Foreign Military Sales aircraft in Lots 12, 13 and 14. 

In the agreement, the F-35 Enterprise meets and exceeds its long-stated cost reduction targets for each variant – and the F-35A unit price, including aircraft and engine, is now below $80 million in both Lot 13 and Lot 14, the F-35A unit cost represents an estimated overall 12.8 percent reduction from Lot 11 costs for the conventional landing variant, and an average of 12.7 percent savings across all three variants from Lot 11 to 14.

“Driving down cost is critical to the success of this program. I am excited that the F-35 Joint Program Office and Lockheed Martin have agreed on this landmark three-lot deal. This agreement achieves an average 12.7 percent cost reduction across all three variants and gets us below $80 million for a USAF F-35A by Lot 13 – one lot earlier than planned,” said Air Force Lt. Gen. Eric Fick, F-35 Program Executive Officer. “This $34 billion agreement is a truly historic milestone for the F-35 Enterprise.” 

The agreement includes 291 aircraft for the U.S. Services, 127 for F-35 International Partners, and 60 for F-35 Foreign Military Sales customers. Price details include:

“With smart acquisition strategies, strong government-industry partnership and a relentless focus on quality and cost reduction, the F-35 Enterprise has successfully reduced procurement costs of the 5th Generation F-35 to equal or less than 4th Generation legacy aircraft,” said Greg Ulmer, Lockheed Martin, F-35 Program vice president and general manager. “With the F-35A unit cost now below $80 millionin Lot 13, we were able to exceed our long-standing cost reduction commitment one year earlier than planned.”

The sub $80 million unit recurring flyaway cost for an F-35 represents an integrated acquisition price for the 5th Generation Weapon System. With embedded sensors and targeting pods, this F-35 unit price includes items that add additional procurement and sustainment costs to legacy 4th Generation aircraft.

Program Progress

With more than 450 aircraft operating from 19 bases around the globe, the F-35 is playing a critical role in today’s global security environment. More than 910 pilots and 8,350 maintainers have been trained, and the F-35 fleet has surpassed more than 220,000 cumulative flight hours. Eight nations have F-35s operating from a base on their home soil and seven Services have declared Initial Operating Capability. 

In addition to strengthening global security and partnerships, the F-35 provides economic stability to the U.S. and International Partners by creating jobs, commerce and security, and contributing to the global trade balance. The F-35 is built by thousands of men and women in America and around the world. With more than 1,400 suppliers in 46 states and Puerto Rico, the F-35 Program supports more than 220,000 direct and indirect jobs in the U.S. alone. The Program also includes more than 100 international suppliers, creating or sustaining thousands of jobs.

Air Lease Corporation Announces Lease Placement of Six New Airbus A321neo Aircraft with China Airlines

LOS ANGELES, October 24, 2019 – Today Air Lease Corporation (“ALC”) (NYSE: AL) announced long-term lease agreements with China Airlines (Taiwan) for six new Airbus A321neo aircraft.  The aircraft will deliver to the airline beginning in 2021 through 2022 from ALC’s order book with Airbus. 

“We are honored to have been chosen by China Airlines to provide their first six new A321neos in their single-aisle fleet transformation,” said John L. Plueger, Chief Executive Officer and President of Air Lease Corporation.  “The A321neo will provide significantly expanded capabilities which will benefit China Airlines and its passengers far into the future.”

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including expected delivery dates.  Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law.  Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission.

About Air Lease Corporation (NYSE: AL)

ALC is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world.  ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions.  ALC routinely posts information that may be important to investors in the “Investors” section of ALC’s website at www.airleasecorp.com. Investors and potential investors are encouraged to consult the ALC website regularly for important information about ALC. The information contained on, or that may be accessed through, ALC’s website is not incorporated by reference into, and is not a part of, this press release.

About China Airlines

Founded in 1959, China Airlines employs more than 12,000 people worldwide and operates a fleet of 111 aircraft, making it the largest airline by size and frequency of service in Taiwan. China Airlines is also one of the 19 SkyTeam Alliance member airlines. China Airlines offers passengers access to an extensive global network of more than 14,500 daily flights to 1,150 destinations in 175 countries. China Airlines is continuing to promote superior aviation safety as well as eco-friendly, innovative and attentive services that provide travelers with the perfect travel experience. Recent major international and domestic awards received by China Airlines include: 7/7 Safety Rating from AirlineRatings in Australia, the Taiwanese civil aviation industry’s top “Golden Flyer Award,” “Best of the Best” Red Dot Award, iF Design Award, Good Design Award from Japan, “Best Airline of the Year,” “Best Airline in North Asia,” “Best Business Class Seat Design” and “Best Premium Economy” from the U.S.-based Global Traveler, “Top 10 Premium Business Class” and “Top 10 Economy Class” from the DesignAir, PAX International reader survey’s winner in the “Outstanding Food Service by a Carrier – Asia” category, and the APEX Award for Publication Excellence for the inflight magazine “Dynasty.”

Aurigny Launch Customer for ClearVision With First ATR 72-600

  • Guernsey airline renews ATR fleet with the delivery of first of three new ATR 72-600 aircraft

Toulouse, 25 October 2019 – ATR, the world number one in the regional aviation market, today delivered the first of three ATR 72-600 aircraft to Aurigny. By replacing its fleet of three ATR 72-500 aircraft with the -600 Series, Aurigny will optimise its operations by acquiring the most efficient regional aircraft. An ATR 72-600 burns up to 40% less fuel and emits 40% less CO2 compared to a regional jet. The Guernsey-based airline will also further benefit from -600 Series’ latest generation Standard 3 avionics suite and is the launch customer for the ClearVision™ Enhanced Vision System (EVS). The EVS will provide pilots with outstanding vision and situational awareness during conditions of reduced visibility. In the cabin, Aurigny’s passengers will also benefit from the -600 Series’ modern Armonia cabin which will introduce the latest standards of comfort, offering more space for luggage in Overhead Bins and providing passengers 18” wide seats.

Aurigny Chief Executive Officer, Mark Darby, said: “We are sincerely proud of Aurigny’s role in providing essential connectivity between Guernsey and the United Kingdom – our customers depend on the services that we provide and we want to deliver them the very best. Our ATR fleet has played a key role in that for many years and upgrading our fleet will allow us both to optimise our operations with the very latest avionics while providing our passengers with a modern, comfortable cabin, in which they can relax and enjoy their flight.”

Stefano Bortoli, Chief Executive Officer of ATR commented: “Regional airlines often have a tough job and it is our role to make sure that we do everything that we can to support them. When an airline upgrades its ATR fleet to the latest generation -600 Series with ClearVision™, it tells us that our platform has a perfect fit with their operations and that they trust us to continue delivering innovations that will make a genuine and positive impact in the future.”

ATR aircraft provide a lifeline to island communities all over the world. With Guernsey situated in the English Channel, Aurigny deliver essential connectivity to their passengers by linking them to destinations in Great Britain and mainland Europe. An ATR study has shown that the benefit that regional connectivity can bring to communities, with a 10% increase in regional flights leading to a 5% increase in tourism, a 6% increase in regional GDP and an 8% increase in Foreign Direct Investment.

Drukair Takes Delivery of Latest Generation ATR 42-600

  • Airline renews fleet with turboprop featuring cutting-edge avionics
    for performance in challenging conditions

Toulouse, 22 October, 2019 – Bhutanese national flag-carrier Drukair today took delivery of its brand new ATR 42-600 aircraft. The latest-generation turboprop aircraft, which will be used on the airline’s domestic and international routes, was chosen for its outstanding operational performance in challenging conditions. The airline’s ATR serves small airports in the Himalayan Mountains and links Bhutan with Kathmandu, Kolkata and Dhaka. Through the introduction of the -600 series’ latest generation Standard 3 avionics suite, Drukair will benefit from RNP AR 0.3/0.3 which further enhances airfield accessibility and operational performance. Drukair’s ATR is equipped with the ClearVision™ system, which will provide pilots with outstanding vision and situational awareness. The aircraft will feature a very comfortable 40-seat cabin with generous pitch and stowage.

Tandi Wangchuk, Chief Executive Officer of Drukair said: “We have been flying an ATR aircraft since 2011, its versatility and operational reliability have made it the ideal aircraft. When evaluating how to improve on this performance, it makes sense to upgrade to the latest-generation and we look forward to introducing these evolutions to our passengers. Particularly the modern Armonia cabin which will provide even more comfort to everyone on board.”

ATR Chief Executive Officer, Stefano Bortoli said: “There are few things more satisfying than seeing a loyal customer renew and upgrade its ATR fleet. This delivery once more shows the impact of our policy of continuous development which ensures that when we introduce new products and innovations, they offer real quality and value to our family of operators. Delivering regional connectivity in the challenging operational conditions of Bhutan and its neighbouring countries takes a special aircraft and the ATR 42‑600 is the perfect fit.”

ATR’s market estimates forecast that 1,200 30-50 seat aircraft will soon need to be replaced as older and inefficient aircraft come to the end of their lives. The ATR 42-600 is the ideal and modern solution to cater for this need and ensure that essential connectivity is maintained for local communities all over the world.

Airbus Marks 1,000th A320neo Family Aircraft Delivery

Airbus has delivered the 1,000th A320neo Family aircraft. The aircraft, an A321neo produced in Hamburg, Germany, was delivered to Indian airline IndiGo.

IndiGo is the world’s biggest customer for the A320neo Family with orders totaling 430 aircraft. Since its first NEO was delivered in March 2016, its fleet of A320neo Family has grown into the world’s largest with 96 aircraft operating alongside 129 A320s. In an extremely competitive aviation market, the fuel efficient A320 Family has been instrumental in IndiGo’s rise to become India’s largest airline by fleet size and passenger numbers.

The A320neo Family is assembled at Airbus’ four global sites: Toulouse, France; Hamburg, Germany; Tianjin, China; and Mobile, USA. The world’s first A320neo was delivered in January 2016 and the programme has achieved milestones every year since: the first A321neo in 2017; the first A321LR in 2018 and the launch of the A321XLR in 2019.

The A320neo programme was designed with fuel efficiency in mind. Building on the A320ceo’s popularity, the aircraft delivers 20% reduced fuel burn as well as 50% less noise compared to previous generation aircraft. Seating up to 240 passengers, depending on cabin configuration, the A320neo Family features the widest single aisle cabin in the sky and incorporates the very latest technologies including new generation engines and Sharklets. At the end of September 2019, the A320neo Family had received more than 6,660 firm orders from close to 110 customers worldwide.

First Royal Canadian Air Force C295 Shows Off its Final Livery

Seville, 8 October 2019 – The first Airbus C295, purchased by the Government of Canada for the Royal Canadian Air Force’s (RCAF) Fixed Wing Search and Rescue Aircraft Replacement (FWSAR) programme, rolled out of the paint shop showing off its final livery at the Airbus facility in Seville, Spain. The aircraft will now go through the final preparation phase before its delivery to the customer, planned to take place in Spain before the end of the year.

The photo above shows the first Canadian C295, to be designated CC-295 by the RCAF, in its distinctive Search and Rescue colours.

The aircraft adopts the yellow paint scheme following the tradition defined in the 1970s for Search and Rescue aircraft, giving high visibility for those in the air and on the ground.

FWSAR program facts and figures

The contract, awarded in December 2016, includes 16 C295 aircraft and all In-Service Support elements including, training and engineering services, the construction of a new Training Centre in Comox, British Columbia, and maintenance and support services.

The aircraft will be based where search and rescue squadrons are currently located: Comox, British Columbia; Winnipeg, Manitoba; Trenton, Ontario; and Greenwood, Nova Scotia.

Considerable progress has been made since the FWSAR programme was announced two and a half years ago: the first aircraft is due to be delivered in Spain in the coming months; another six aircraft are either completing flight tests or in various stages of final assembly; and seven simulators and training devices are starting up preliminary acceptance tests.

The first RCAF crews started training in late summer 2019 at Airbus’ International Training Centre in Seville, Spain.

For more information about the FWSAR program click here

Cessna Citation Longitude Begins Production Deliveries

WICHITA, Kansas–(BUSINESS WIRE)– Textron Aviation Inc., a Textron Inc. (NYSE: TXT) company, today announced the first deliveries of the company’s new flagship Cessna Citation Longitude super-midsize business jet, signaling the start of a new dimension in business travel. The Longitude received FAA type certification on September 21, 2019.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191002005194/en/

“The newly certified Citation Longitude brings unrivaled technology to the business travel market, for both the passenger and the pilot, offering our customers the most efficient and productive super-midsize jet now in operation,” said Ron Draper, president and CEO. “We are thrilled to now transition this program into service.”

The Longitude features the longest maintenance intervals in its class – 800 hours or 18 months – and is the most cost-effective aircraft in its category.

“The Longitude was designed around maximizing reliability and operational availability for our customers,” said Kriya Shortt, senior vice president, Global Customer Support. “The Longitude’s industry-leading on-board diagnostics system is backed by Textron Aviation’s team of 3,000 customer service employees. Our expert technicians trained alongside the development of the program and are ready to support our customers wherever they are in the world.”

The clean-sheet design of the Longitude integrates the latest technology throughout the aircraft, including the next evolution of the Garmin G5000 flight deck. The comfortable, bespoke interior of the Longitude has class-leading legroom, cabin sound levels that are nearly twice as quiet as the nearest competitor, a low cabin altitude of 5,950 feet and more standard features than all other competitors in this segment.

About the Citation Longitude 
With a range of 3,500 nautical miles (6,482 kilometers) and full fuel payload of 1,600 pounds (726 kilograms), the Citation Longitude is designed to elevate passenger expectations in the super-midsize class by delivering the quietest cabin, a low cabin altitude (5,950 feet/1,814 meters), more standard features and a comfortable, bespoke interior. With seating for up to 12 passengers, including an optional crew jump seat, the Longitude features a stand-up, 6-foot tall flat-floor cabin. A standard double-club configuration delivers the most legroom in the super-midsize class. Fully berthable seats are designed and manufactured in-house and a spacious walk-in baggage compartment is accessible throughout the entire flight. State-of-the-art cabin technology enables passengers to manage their environment and entertainment from any mobile device, while high-speed internet maximizes in-flight productivity.

The clean-sheet design of the Longitude integrates the latest technology throughout the aircraft, bringing customers the lowest ownership cost in its class. It features the next evolution of the Garmin G5000 flight deck and is powered by FADEC-equipped Honeywell HTF7700L turbofan engines with fully integrated autothrottles with envelope protection. The spacious cockpit incorporates easier access and an ergonomic design that fully focuses on crew comfort and efficiency.

No super-midsize business jet offers more range, greater payload or higher cruise speed at a lower expected total ownership cost.

Air France Takes Delivery of its First A350 XWB

Air France has taken delivery of its first A350-900, the world’s most efficient all new design wide-body aircraft. The first jet out of a total order of 28 was handed over to Anne Rigail, Air France Chief Executive Officer and Benjamin Smith, Air France-KLM Group Chief Executive Officer, by Airbus Chief Commercial Officer Christian Scherer during a ceremony held in Toulouse, France.

Air France will deploy the A350-900 fleet on its transatlantic and Asia routes. The Xtra WideBody aircraft features a comfortable three-class layout with 324 seats including 34 full-flat business, 24 premium economy and 266 economy class seats. Fully in line with Air France’s commitment to the environment, the all-new A350-900 will provide a 25% reduction in fuel burn and CO2 emissions. Additionally, the aircraft’s delivery flight from Toulouse to Paris will be powered with a blend of conventional and synthetic biofuel.

Air France operates an Airbus fleet of 143 aircraft. It includes 114 single-aisle and 29 wide-body planes. The airline recently opted to purchase Airbus’ newest aircraft family member, the A220, which will join the fleet over the next years. 

The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments – up to ultra-long haul (17,900km). Its Airspace by Airbus cabin is the quietest of any twin-aisle aircraft and offers passengers and crews the most modern in-flight flying experience. The aircraft features the latest aerodynamic design, a carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce Trent XWB engines.  Together, these latest technologies result in 25% lower operating costs, as well as 25% reduction in fuel burn and CO2 emissions compared with previous-generation competing aircraft – demonstrating Airbus’ commitment to minimise its environmental impact while remaining at the cutting edge of air travel.

At the end of August 2019, the A350 XWB Family had received 913 firm orders from 51 customers worldwide, making it one of the most successful wide-body aircraft ever.

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