Airbus acknowledged reports last Thursday that Quantas has cancelled an order for its 8 remaining A380 aircraft. The announcement comes on the heels of Emirates re-evaluating its decision to add on to its remaining Super Jumbo order book.
Qantas Airlines of Australia confirmed it would not take any more of the world’s largest airplane, operating a fleet of 12 aircraft, instead of the 20 it had originally ordered. This news comes on the heels of Airbus’ largest A380 customer Emirates beginning discussions with Airbus over the possibility of changing some, or all, of its remaining A380 orders to smaller A350 or A330neo models after failing to secure an engine contract from Rolls-Royce for the last A380 order it placed.
Airbus has declined to comment on the future of the A380 at this time, but reports indicate that an announcement could come as soon as this Thursday.
Airbus also reported the cancellation of an order for five of its smallest aircraft, the 110-seat A220-100. The identity of the A220 buyer was not disclosed, but is widely believed to be the Swiss-based business charter carrier PrivatAir, which filed for insolvency at the end of 2018. PrivatAir had placed an ordered for 5 of the type, the Canadian Bombardier CS100 at the time of the order, in early 2012.
British Airways’ new year’s resolution is to provide its customers with even more quality and choice in every cabin on every route – with a £6.5bn investment and 18 great reasons to look forward to flying with the airline in 2019.
Here are some of the reasons to fly with British Airways this year:
New routes. Customers can try out the airline’s new routes to Charleston y’all, with Pittsburgh, Osaka, Kos and Corsica, Ljubljana, Montpellier, among others. It’s the airline’s most extensive route network in more than a decade.
New aircraft. Customers can fly on one of the carrier’s 15 plush new aircraft being delivered this year – including four fabulous A350 aircraft.
A brand-new Club World seat, featuring on the new A350 aircraft, and two 777 aircraft by the end of the year.
WiFi. The best, live streaming WiFi on all short-haul flights and the vast majority of long-haul flights so customers can sit back and enjoy films and TV shows from their favourite streaming service.
A new look for First. New first-class dining, bedding and amenity kits from one of the UK’s best-loved designers.
An industry-leading makeover for World Traveller Plus. Look out for new bedding and new dining in this intimate and exclusive cabin.
New lounges for customers to relax and enjoy ahead of their flight, in San Francisco, Johannesburg, Geneva and JFK.
An extended partnership with premium dining supremo Do&Co, the airline’s new in-flight caterer from Heathrow and already providing meals in Club Europe.
A new ba.com homepage, making booking with British Airways even easier and more intuitive.
New partners for the British Airways Executive Club, offering even more ways to collect and spend Avios.
Digital bag tags. A UK airline first. Sync your personal baggage tag with the BA app, drop your luggage at the airport, and fly.
Self-service baggage drops at Heathrow T3 offering customers the same service as T5.
Facial recognition technology. More biometric technology at Heathrow, London City and Gatwick, New York JFK, Orlando, Los Angeles, Miami and many more. The system makes boarding faster and more convenient, helping British Airways depart flights on, or ahead of time.
New emissions-free, remote-controlled pushback vehicles for long-haul aircraft to continue to improve punctuality. Short-haul versions reduced pushback delays by more than 70 per cent.
New winter equipment – helping British Airways safely de-ice its fleet of almost 300 aircraft quicker than ever during the frosty winter months.
Hotel reservations. Investment in new technology will see rooms automatically booked for customers who miss their flights due to disruption.
Enhanced customer service. Almost 30,000 staff will receive the airline’s all-new customer service training. At T5 – more airport hosts than ever before are being re-trained to manage any customer issue, from re-booking to upgrades, lounge access, baggage and transfer queries and flight information.
And last but not least – look out for British Airways’ Centenary celebrations. It’s going to be 100 years’ old this year, and will be celebrating in style, sharing its heritage and looking at what to expect from flying in the future.
A British Airways 787 Dreamliner G-BBJA flying over Derby ‘s Rolls Royce sites.
Delivered 76 aircraft, maintaining ATR’s leadership in turbo prop market
Turnover at US$ 1.8 billion
Achieved book to bill above 1 over 24 month period
Outlook for 2019 shows continuous momentum for ATR
Toulouse, January 31, 2019 – ATR, the Franco-Italian turboprop manufacturer, maintained its leadership on the market in 2018, showing a solid performance. It delivered 76 aircraft, booked 52 firm orders and stabilised its annual turnover at US$ 1.8 billion. With a total of 165 orders and 154 deliveries between 2017 and 2018, ATR achieved a book to bill ratio above 1.
Out of the 52 firm orders, 20 are for ATR 42-600s. In a difficult environment, ATR succeeded in reallocating the aircraft it was unable to deliver to Iran Air. With around 62% of the turboprop orders for the year, the modern ATR -600s continues to be the preferred choice of regional airlines. The 2018 results provide ATR with a solid backlog representing almost three years of production.
In 2018, ATR has sold aircraft in every region of the world, and welcomed three new operators into the ATR family (Silver in the US, Ewa Air in Mayotte in the Indian Ocean and HAC in Japan). ATR also signed the first contracts for aircraft equipped with its new ClearVision™ system. As the ideal route opener, ATR aircraft created 113 new routes in 2018, serving 1,346 airports worldwide (56 more than in 2017).
The market-leading turboprop manufacturer also surpassed three impressive delivery milestones in 2018. ATR delivered its 1,000th ATR 72, its 500th -600 series aircraft, only seven years after the launch of the programme, and its 1,500th ATR aircraft. In 2018, ATR has substantially increased its Customer Support activities. While installing a new training simulator in Toulouse, and introducing a brand new 24/7 Customer Service Center, ATR gained 15% more customers for its tailor-made pay-by-the-hour maintenance programme, the Global Maintenance Agreement (GMA).
Underpinning ATR’s success has been its policy of continuous improvement, which saw in 2018 the introduction of several innovations, including new Neo-Classic and Neo-Prestige passenger seats, which became standard on all new ATRs, and the optional standalone wireless In-Flight Entertainment system Cabinstream™.
The outlook for 2019 and beyond shows a bright future for ATR, as the global turboprop market will require over 3,000 new aircraft before the end of 2037. ATR aircraft will continue to help smaller, local economies expand their horizons while ensuring mature markets continue to thrive, thanks to its unbeatable economics, environmental performance and operational flexibility.
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
PARIS/DUBAI (Reuters) – Dubai’s Emirates is exploring switching some orders for the world’s largest jetliner, the Airbus A380, to the smaller A350 in a move raising new doubts about the future of Europe’s superjumbo, people familiar with the matter said.
The Gulf carrier, which has invested tens of billions of dollars in more than 100 A380s, has been struggling to finalise a deal to buy another 36 to keep assembly lines open, due to differences with engine maker Rolls-Royce.
Now, Airbus is looking closely at closing A380 factories sooner than expected as part of a reshuffle of orders, with Chief Executive Tom Enders unlikely to leave the situation unresolved when his mandate ends in April, they said.
A person familiar with the matter said Airbus was looking “extremely seriously” at setting the timetable for a shutdown but said no decision had been taken.
Airbus said in a statement after Reuters first published news of the talks that it “confirms it is in discussions with Emirates airline in relation to its A380 contract”. But it said details of negotiations were confidential.
Emirates and Rolls-Royce declined to comment.
Emirates announced the deal for up to 36 aircraft worth as much as $16 billion (£12 billion) at list prices a year ago, throwing a lifeline to the programme’s roughly 3,000 workers and securing its future for at least another decade.
The airline is an ardent supporter of the jet, which was designed with luxury features like bars and showers.
But sales of four-engined planes are tumbling as many airlines switch to smaller twin-engined jets like the A350 and Boeing 777 due to improvements in range and efficiency.
A year-long impasse between Emirates and Rolls-Royce over shortfalls in fuel savings has so far blocked the order.
Airbus is trying to broker a complex workaround which could see Emirates take smaller jets also powered by Rolls-Royce while it tries to secure homes for as many A380s as possible, with British Airways recently expressing interest.
Airbus has dangled the prospect of closing A380 production before, and industry sources say such manoeuvres can be a negotiating tactic to force the feuding parties to agree.
But time is running out for the A380 with few airlines willing to spend the sums invested by Emirates, which has made it a backbone of its global network alongside the Boeing 777.
The production line is “untenable”, a senior industry source said
A decision by Emirates to order the A350 would offer a respite for Airbus and its main engine partner Rolls-Royce after the Gulf carrier axed an order for the A380 in 2014.
Airbus and Rolls are keen to maintain a foothold with the Gulf carrier and prevent Boeing filling the gap with more of its General Electric-powered 777s.
(Reporting by Tim Hepher and Alexander Cornwell; Editing by Michel Rose and Edmund Blair)
LONDON/OSLO (Reuters) – British Airways owner IAG (ICAG.L) said on Thursday it would not make a new bid for Norwegian Air (NWC.OL) and would sell its remaining stake in the budget airline, sending Norwegian’s shares sharply lower.
Shares in Norwegian, which has been under pressure over the past 18 months to control costs and shore up its balance sheet, dropped as much as 26 percent after IAG’s statement to hit their lowest since November 2012.
“International Airlines Group (IAG) confirms that it does not intend to make an offer for Norwegian Air Shuttle ASA and that, in due course, it will be selling its 3.93 percent shareholding in Norwegian,” IAG said in a statement.
IAG’s shares turned positive after its statement, and were up 1.5 percent at 1305 GMT.
Norwegian, which has shaken up long-haul rivals by offering cut-price transatlantic fares, said in May it had received two conditional proposals for a full takeover from IAG, but had rejected them because they undervalued the company.
IAG CEO Willie Walsh last year ruled out launching a hostile takeover approach for Norwegian, and also said he wouldn’t get drawn into a bidding war. In addition to British Airways, IAG also owns Iberia, Vueling and Aer Lingus.
A spokeswoman for IAG declined to give further details on the decision not to pursue Norwegian further, but said “we wish Norwegian every success in the future”.
NO MARGIN OF ERROR
“Norwegian’s plans and strategy remain unchanged. The company’s goal is to continue building a sustainable business to the benefit of its customers, employees and shareholders,” Chairman Bjoern Kise said in a statement.
Norwegian has quickly built its long-haul route network, and in October overtook IAG’s British Airways as the biggest non-U.S. airline on transatlantic routes to and from the New York area.
But the Nordic carrier has had to take action to improve its financial position in recent months. In December, it announced a $230 million cost savings programme and refinanced one Boeing (BA.N) 787 Dreamliner as part of a series of steps it said would generate more than $30 million in liquidity.
“Norwegian’s finances are already under pressure, and a share sale (by IAG) will put pressure on the stock, making it hard for them to raise money,” analyst Per Hansen of brokerage Nordnet said in a note to clients.
“They no longer have any margin of error. If they were to need cash, and no alternative buyers emerge, the stock price could end up looking like a jetliner running out of fuel.”
(Reporting by Alistair Smout in London and Terje Solsvik in Oslo, additional reporting by Helen Reid in London and Stine Jacobsen in Copenhagen, Editing by Paul Sandle and Mark Potter)
(Bloomberg) — Etihad Airways PJSC has agreed to lead a rescue of cash-strapped Jet Airways India Ltd. in a move that will see the Abu Dhabi-based carrier double its stake to 49 percent, according to television reports.
Etihad is in talks to lift its holding from the current 24 percent, India’s BTVI channel reported Monday, citing unidentified people familiar with the matter. CNBC-TV18 said that Jet founder Naresh Goyal’s stake could drop to 20 percent from 51 percent, and that he’ll stand down as chairman.
Shares of Jet Airways closed 16 percent higher in Mumbai, where it is based. The company ranks as India’s biggest full-service airline, but has failed to post a profit in nine of the past 11 fiscal years. Cash is running short as fare wars depress revenue and turbulent oil prices increase costs.
An increase in Etihad’s Jet stake would come at a time when the Persian Gulf carrier is cutting thousands of jobs and shrinking its fleet amid mounting losses from over-expansion and failed investments. India remains an attractive prospect because of the size of its travel market and the pace of growth.
Etihad said in an email that it does not comment on rumor or speculation.
Jet didn’t immediately respond to requests for comment, though it said in a filing earlier that it had made no decision requiring a stock-market disclosure. People with knowledge of the matter said last week that the airline is seeking funds from investors including Etihad.
The deal, if it goes through, will give the third-biggest Mideast carrier more say over Jet’s operations and its day-to-day management, with Goyal’s voting rights capped at 10 percent, BTVI said. Indian regulations cap airline ownership by foreign operators at 49 percent, and also prohibit them from taking control.
Etihad, which lost $3.5 billion over two years, last week scrapped orders for 10 Airbus SE A320neo aircraft and revealed plans to cut 50 pilot posts this month. Chief Executive Officer Tony Douglas has put the brakes on a costly bid to challenge bigger Gulf rivals Emirates and Qatar Airways, saying he’ll focused more on local needs rather than carrying passengers between continents.
–With assistance from Layan Odeh and Sam Nagarajan.
To contact the reporter on this story: Anurag Kotoky in London at akotoky@bloomberg.net
To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net, ;Anthony Palazzo at apalazzo@bloomberg.net, Christopher Jasper, John Bowker
For more articles like this, please visit us at bloomberg.com
(Reuters) – Jet Airways Ltd, India’s biggest full-service carrier, has been under dark clouds for the most part of the past year, and several efforts are on to save the sinking airline.
While intense pricing competition, weak rupee and rising fuel costs have hurt Indian airlines like IndiGo owned by InterGlobe Aviation Ltd and SpiceJet Ltd, Jet Airways is in a league of its own.
Saddled with a debt of about 80.52 billion rupees ($1.14 billion) as of Sept. 30, Jet is desperately searching for a deal that could help mitigate its severe liquidity crunch. The airline has a market capitalisation of 28.81 billion rupees as of Friday’s close.
Here’s how Jet has fared:
May 3 – Jet shares fall 12.3 percent after InterGlobe Aviation reported a slump in net profit for March-quarter a day earlier
May 23 – Jet posts first quarterly loss in at least 12 quarters, says it has a negative net worth that ‘may create uncertainties’
Aug 1 – Media report says Jet asked employees to take an up to 25 percent cut in salaries as a part of a cost cutting measure
Aug 3 – Jet denies report that it cannot fly beyond 60 days, and dismisses conjecture of stake sale
Aug 9 – Airline defers board meet for first-quarter results
Aug 11 – After State Bank of India chairman says Jet’s loan is on the bank’s watch list, Jet says it is regular in payment obligations to all banks
Aug 13 – Airline reaffirms that it is considering various options to meet its funding requirements
Aug 15 – Report says U.S. private equity firm Blackstone Group LP is in talks to buy a stake in Jet’s frequent-flier loyalty programme JetPrivilege
Aug 20 – Sources tell Reuters that private equity firm TPG Capital is considering investing in Jet, but is not close to finalising a deal
Aug 27 – Jet posts loss for the June-quarter, says it will inject funds and cut costs by more than 20 billion rupees in two years
Sept 4 – Government plans relief package for airlines
Sept 6 – Jet says it paid salaries to 84 percent of its employees after reports emerge that pilots warned ‘non-cooperation’ over salary default
Sept 20 – Income Tax department conducts survey at Jet’s premises
• Over two dozen passengers on a Jet flight are treated for minor injuries after the plane loses cabin pressure
Oct 4 – Rating agency ICRA downgrades the company’s long term loans and NCDs, citing impact of steep increase in jet fuel prices, rupee depreciation, delay in implementation of liquidity initiatives
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, chief executive officer Vinay Dube expresses confidence in overcoming current challenges
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
Jet executive says company is in talks with multiple parties for a stake sale in its loyalty program, and equity infusion in the airline
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 20 – Tata Sons may go slow on Jet deal after some directors from Tata’s board expressed concerns, according to media reports
Nov 21 – The airline says news on Naresh Goyal, Etihad discussing merger of JetPrivilege with Jet Airways is speculative
Nov 22 – Independent director Ranjan Mathai resigns, citing rising pressure from other commitments
Nov 26 – Report says Naresh Goyal may hand over Jet Airways ops to Etihad Airways
Dec 3 – Jet says it will stop providing free meals to most domestic economy class passengers from January, in its latest move to cut costs and boost revenues
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, and gives them schedule outlining when the payments will be made, source tells Reuters
Dec 7 – ICRA cuts Jet rating yet again, cites delays in implementation of the proposed liquidity initiatives by Jet’s management
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 – 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 – Crisis talks between Jet and aircraft lessors have failed to ease a row over late payments, prompting some lessors to explore taking back aircraft, three people familiar with the matter tell Reuters. Etihad is not “in any position to sink new equity into Jet at this juncture,” says a person familiar with Etihad’s position.
($1 = 70.5090 rupees)
(Compiled by Arnab Paul and Chris Thomas in Bengaluru; Editing by Gopakumar Warrier)
MADRID (Reuters) – The Spanish government is confident national flag carrier Iberia will be able to fly across Europe in the event of a disorderly Brexit, even though the airline is majority-owned by Britain-based Anglo-Spanish group IAG (ICAG.L).
Britain is due to leave the European Union on March 29 but has yet to seal a withdrawal agreement, posing a potential risk to airlines that don’t meet EU rules requiring European carriers to be majority-owned and operated in the bloc.
“From the public works ministry’s point of view, we’re convinced that Iberia is a Spanish company,” a spokesman for the ministry told Reuters.
“We are also convinced that, if necessary, the company will make the necessary adjustments to make sure it complies with European regulations,” he said.
Iberia carries 19 million passengers a year and is a major employer in Spain with almost 17,000 workers.
IAG, which also owns British Airways, is registered in Spain but headquartered in Britain and has shareholders from around the world. Iberia has a Spanish shareholder with just over 50 percent of voting rights via a complex ownership scheme.
“We are confident that we will comply with the EU and the UK ownership and control rules post-Brexit,” IAG said, adding that IAG was a Spanish company.
The Financial Times reported on Tuesday that Brussels had doubts about IAG’s arguments that its individual airlines are domestically owned.
European Commission sources told Reuters that Brussels encouraged IAG and all airlines concerned to check with the national licensing authorities whether they would still meet the operating licence requirements in case of a “no deal” Brexit.
They said the Commission was in regular contact with the national authorities that review compliance.
While IAG wholly owns the economic rights of Iberia Holdings, it holds just 49.9 percent of voting rights. Garanair, wholly owned by Spain’s retail giant El Corte Ingles, has the remaining 50.1 percent voting stake.
(By Belén Carreño. Additional reporting by Jan Strupczewski; Writing by Andrei Khalip; Editing by Mark Potter)
JetBlue Airways has firmed up an order for 60 A220-300 aircraft, the larger model of the new, industry-leading A220 series.
“As we approach our 20th anniversary, the impressive range and economics of the highly efficient A220, combined with the outstanding performance of our existing fleet of Airbus A321 and restyled A320 aircraft, will help ensure we deliver the best onboard experience to customers and meet our long-term financial targets as we continue disciplined growth into the future,” said Robin Hayes, Chief Executive Officer, JetBlue.
JetBlue’s existing Airbus fleet includes 193 A320 and A321ceo aircraft in operation, with an additional 85 A321neo aircraft on order.
“JetBlue has proven there is no contradiction between economic efficiency and a high quality product,” said Christian Scherer, Airbus Chief Commercial Officer. “Their endorsement of the A220 proves this aircraft meets those two criteria better than any alternative in its segment. Thank you JetBlue and congratulations on this big milestone in your growth.”
The order was completed the last week of December. Airbus will produce the A220-300 aircraft at a new U.S. assembly facility in Mobile, Alabama. Construction of the plant, to be located adjacent to the existing Airbus A320 assembly facility, will begin later this month.
The A220 is the only aircraft purpose built for the 100-150 seat market; it delivers unbeatable fuel efficiency and true widebody comfort in a single-aisle aircraft. The A220 brings together state-of-the-art aerodynamics, advanced materials and Pratt & Whitney’s latest-generation PW1500G geared turbofan engines to offer at least 20 percent lower fuel burn per seat compared to previous generation aircraft. With a range of up to 3,200 nm (5,020 km), the A220 offers the performance of larger single-aisle aircraft.
With an order book of more than 500 aircraft to date, the A220 has all the credentials to win the lion’s share of the 100- to 150-seat aircraft market estimated to represent at least 7,000 aircraft over the next 20 years.
DUBAI/BEIJING, Jan 2 (Reuters) – Qatar Airways has acquired a 5 percent stake in China Southern Airlines, the state-owned Gulf carrier said on Wednesday, in a move to gain access to the fast-growing mainland Chinese market.
Qatar Airways also owns a 20 percent stake in British Airways-parent International Consolidated Airlines Group, 10 percent of South America’s LATAM Airlines Group SA , 49 percent of Italy’s Meridiana and 9.99 percent stake in Hong Kong’s Cathay Pacific.
Qatar’s flagship airline has sought new partners and routes after it was blocked last year from flying to the lucrative markets of Saudi Arabia and the United Arab Emirates because of restrictions imposed by those countries.
Saudi Arabia, UAE, Bahrain and Egypt, imposed a political and economic boycott on Qatar since June 2017, accusing it of supporting terrorism, which Doha denies.
China Southern in a separate statement said Qatar Airways may consider increasing its stake in the airline in the next 12 months. Qatar had no previous investment in the Chinese airline.
Qatar Airways is the second foreign carrier that has a stake in China Southern, after American Airlines. The Chinese carrier left the Skyteam airline alliance at the start of the year.
There are opportunities for “us to work together and build a long term relationship in ways that would bring benefits to customers of both airlines,” said Qatar Airways’ Chief Executive Akbar al-Baker.
Ajith K, director of Asia transport at UOB Kay Hian, said given that China Southern is the biggest competitor of Cathay Pacific in Greater China, this deal could strengthen the China Southern’s position at the Hong-Kong carrier’s expense. “Why Qatar is doing this, seems to me, one of course is to gain access to the Chinese market. Secondly it’s probably that they are hedging against their bet given they own almost 10 percent in Cathay Pacific.”
(Reporting by Asma Alsharif and Saeed Azhar in Dubai and Stella Qiu in Beijing; editing by Louise Heavens)
