Tag: government (Page 18 of 22)

Thomas Cook Collapse Prompts International Response

September 25, 2019 / WIL BALDWIN

(Reuters) – The collapse of British travel operator Thomas Cook left hundreds of thousands of holidaymakers abroad and forced governments and insurers to coordinate a huge operation to get them home.

FILE PHOTO: Passengers are silhouetted in front of a closed service counter of travel agent Thomas Cook and airline Condor at the airport in Frankfurt, Germany, September 24, 2019. REUTERS/Kai Pfaffenbach

The company ran hotels, resorts and airlines ferrying 19 million people a year to 16 different countries.

Here is a summary of the impact of the collapse in different countries and efforts to salvage parts of the group:

GERMANY

Thomas Cook’s German tour business filed for insolvency on Wednesday in a move aimed at separating its brands and operations from its failed parent, and it said it was in talks with potential new investors.

The German government said it was considering an application for a bridging loan from Thomas Cook Germany, a day after it said it would guarantee a 380 million euro ($418 million) bridging loan for Condor, the British group’s German airline.

The company is in contact with the German foreign ministry, insurers and other partners to get customers home. Zurich Insurance, which provided insolvency cover to Thomas Cook Germany, will cover the costs for those on holiday.

About 97,000 holidaymakers were still stranded on Thursday.

AUSTRIA

Thomas Cook Austria, which belongs to the German unit, also filed for insolvency on Wednesday, with the aim of continuing in business.

THE NETHERLANDS

The Dutch unit of Thomas Cook canceled all travel booked through Thomas Cook Netherlands and subsidiary Neckermann.

A Dutch court on Wednesday granted Thomas Cook Nederland B.V., a Netherlands-based subsidiary, protection from creditors. It employed roughly 200 staff.

POLAND

Thomas Cook’s Polish unit, Neckermann Polska, said on Wednesday that it has filed for insolvency. Poland regional authorities says around 3,600 customers of Neckermann Polska are still abroad.

BELGIUM

Thomas Cook’s Belgian unit ceased carrying passengers on Tuesday and liquidated two businesses, seeking protection from creditors and ultimately a buyer for Thomas Cook Retail Belgium.

It still has some 13,400 customers on holidays abroad.

NORDICS

Several planes operated by Thomas Cook Scandinavian Airlines have not been able to take off because their leasing contracts remained with the British parent, Danish subsidiary Spies said.

It was not immediately clear how the situation would be resolved.

Thomas Cook’s Nordic business said on Monday it would continue to operate as it is a separate legal entity from its London-listed parent and added that it was looking for new owners.

The Nordic business consists of two legal entities, Thomas Cook Northern Europe and Thomas Cook Scandinavian Airlines, and is also known as Ving Group.

The business operates under several brands: Ving in Norway, Spies in Denmark, Tjäreborg in Finland, as well as Ving and Globetrotter in Sweden.

BRITAIN

Emergency flights had brought 14,700 people back to the United Kingdom on 64 flights on Monday, and around 135,300 more were expected to be returned over the next 13 days, Britain’s aviation regulator said.

More than 70 flights were scheduled to operate on Wednesday to bring back 16,500 people.

MEXICO

The collapse of British travel firm Thomas Cook will not have a “significant impact” on Mexico’s tourist industry as it only represents about 0.4% of the sector’s foreign income, the Mexican tourism ministry said on Tuesday.

BULGARIA

Thomas Cook’s collapse poses a serious challenge to Bulgarian tourism, with dozens of Black Sea hotels facing losses totaling tens of millions of dollars as negotiations for the next summer season take place, its tourism minister said on Tuesday.

TUNISIA

Tunisian tourism minister Rene Trabelsi told Reuters that 4,500 Thomas Cook customers are still on holiday in Tunisia.

The British government repatriated about 1,200 tourists via planes sent to Tunisa’s Enfidha airport, and another 4,000 still in Tunisia will return after their holidays.

FRANCE

The French arm of the business said on Tuesday it was asking the French commercial court of Nanterre for creditor protection

Thomas Cook France will hold a meeting of its works council on Thursday about a plan to declare insolvency and to start a recovery procedure.

French organization Entreprises de Voyage said that about 10,000 French tourists could be affected by the bankruptcy.

SPAIN

The collapse has affected 53,000 Britons in Spain, Spanish Acting Tourism Minister Reyes Maroto told reporters.

The ministry has been in touch with German and Swedish authorities to ensure Thomas Cook subsidiaries continue to operate at least for the winter season, she added.

GREECE

A Greek tourism ministry official told Reuters that about 50,000 tourists were affected.

CYPRUS

Cyprus says 15,000 Thomas Cook customers were stranded on the island.

HUNGARY

Thomas Cook’s Hungarian unit Neckermann Magyarorszag said it was continuing its operations and all passengers would be able to return from abroad as planned.

It said its financial situation was stable and its assets were sufficient guarantee that its passengers would not suffer any financial damage. It said passengers should contact its offices directly about upcoming flights.

RUSSIA

Thomas Cook’s Russian tour operator subsidiary, Intourist, said the bankruptcy of Thomas Cook will have no impact on clients, Executive Director Sergei Tolchin told Interfax.

TURKEY

The Turkish Ministry of Tourism said it will provide support for local companies affected by the Thomas Cook collapse.

The head of the country’s Hotelier Federation said about 45,000 tourists from the UK and elsewhere in Europe are in the country.

MOROCCO

Morocco’s tourism ministry said it had created a crisis unit to handle the fallout from Thomas Cook’s collapse. Thomas Cook operated two flights to Marrakesh a week. No official numbers were given.

EGYPT

Thomas Cook operator Blue Sky Group said that 25,000 reservations in Egypt booked up to April 2020 had been cancelled. Blue Sky currently has 1,600 tourists in Egypt’s Hugharda resort.

INDIA

Thomas Cook India said it had been unaffected as it has been a separate entity since August 2012.

Tunisair Express Acquires Three ATR 72-600’s

September 6, 2019 / WIL BALDWIN

Toulouse, 5 September 2019 – Tunisair Express and ATR, the world’s number one regional aircraft manufacturer, today confirm a firm order for three ATR 72-600s. The aircraft will renew Tunisair Express’s regional fleet and supply essential connectivity, both domestically and internationally.

The market-leading modern ATR turboprops support airline operations by burning 40% less fuel and emitting 40% less CO2, compared to a regional jet. The ATR -600 cabin will also introduce the best onboard experience to Tunisair Express passengers, including the ATR’s Cabinstream™ In-Flight Entertainment system, enabling passengers to enjoy their flight by accessing a range of multimedia content on their personal electronic devices.

Tunisair Express Director General, Yosr Chouari, said: “We have had a long and strong partnership with ATR since the early 1990s, and we are pleased to introduce the modern ATR 72-600 into our fleet thanks to the support of the Tunisian Government and parent company Tunisair. When deciding on a fleet renewal strategy, it was clear that the combination of its unbeatable economics and most eco-responsible performance made the ATR the best choice for our regional network. Furthermore, we are sure that our passengers will greatly appreciate the modern, spacious cabin with its widest-in-class seats and the new cutting edge Cabinstream™ technology giving our passengers an exceptional on board experience.”

ATR Chief Executive Officer, Stefano Bortoli, commented: “The decision of Tunisair Express for three new ATR 72-600s is a further endorsement of our product and validates our policy of continuous development. With a dispatch reliability of 99.7%, its effectiveness in hot conditions, and its performance perfectly suited to the operations envisaged by Tunisair, the ATR is the ideal aircraft to continue supplying essential connectivity throughout Tunisia and beyond its borders.”

ATR’s Market Forecast sees a demand for 350 new turboprops over the next 20 years for the Africa and Middle-East region. Regional aviation provides essential connectivity around the world. A 10% increase in regional flights generates additional increases of 5% in tourism, 6% in regional GDP and 8% foreign direct investment. Turboprops are key in connecting communities around the world: 36% of all commercial airports rely exclusively on turboprops and 50% rely, also exclusively, on regional aircraft.

About Tunisair Express:
Tunisair Express is a Tunisian public airline that is a subsidiary of the Tunisair group. It serves the Tunisian domestic network as well as nearby international destinations. The company also offers a charter service, notably to European tour operators. Tunisair Express as created in August 1991, under the name Tuninter and operated its first flight in March 1992. The company transports over 300,000 passengers every year across its network. The renewal of its fleet will allow Tunisair Express, to both reinforce its domestic and neighbouring services from Tunis, as well as open new routes.

Alitalia Rescuers to Ask for Another Delay

September 5, 2019 / WIL BALDWIN

MILAN, Sept 5 (Reuters) – Companies hoping to rescue Italian carrier Alitalia will ask for a deadline for presenting their plan to be extended as they are still negotiating key aspects, two sources familiar with the matter said.

Italian railway group Ferrovie dello Stato, which is leading an effort to take control of Alitalia, is expected to ask administrators running the carrier for a “substantial” delay to the Sept. 15 deadline, one of the sources said.

It would be the sixth delay since Ferrovie expressed its interest in investing in the carrier at the end of last year.

Ferrovie, infrastructure group Atlantia and U.S. carrier Delta Air Lines have been discussing a joint plan for Alitalia for nearly two months, but they are at odds over highly-profitable North American routes, three sources familiar with the matter said.

The Italian partners in the consortium want Alitalia to have more freedom to expand its North American routes compared to what Delta is currently offering under a new cooperation agreement dubbed Blue Skies that it has set up with Air France KLM and Britain’s Virgin Atlantic.

How Alitalia would share the revenue coming from North American routes with Delta and other partners in the Blue Skies alliance is also under negotiation.

“The role of Alitalia in the Blue Skies alliance is a point of contention,” one of the sources said.

Long-haul flights to the United States and Canada account for more than one third of Alitalia’s revenue and are considered key to reviving the Italian carrier, which was put under special administration in 2017 after workers rejected the latest in a long line of rescue plans.

Administrators appointed by Italy’s government have cut costs and renegotiated plane leasing contracts to make Alitalia more efficient, but the carrier still burns cash and had been kept afloat thanks to a 900 million-euro bridging loan granted by Italy’s treasury.

Alitalia had only 410 million euro left in its coffers in July and would need fresh funds by the end of the year when it is expected to post a loss, according to another source.

Delta and Ferrovie declined to comment. (Additional reporting by Tracy Rucinski in Chicago Editing by Alexandra Hudson)

Cathay Pacific Shares Fall Nearly 4% After Chairman Resigns

September 4, 2019 / WIL BALDWIN

Slosar attends a news conference in Hong Kong

HONG KONG (Reuters) – Shares in Cathay Pacific Airways Ltd fell nearly 4% in early trade on Thursday following the resignation of its chairman after the market closed on the previous day.

The departure of John Slosar was announced less than three weeks after mounting Chinese regulatory scrutiny led to the shock exit of its chief executive, Rupert Hogg.

Cathay shares had closed 7.2% higher on Wednesday as the Hong Kong market was lifted by reports of the withdrawal of a controversial extradition bill, which was officially announced after the market closed.

Long-serving Swire Pacific Ltd executive Patrick Healy was appointed as Cathay’s new chairman on Wednesday following the resignation of Slosar, who had served in the role since 2014.

“As John would have retired soon anyway it’s not really a huge setback as a business,” an analyst said of Slosar’s departure. “However it’s always awful to see when politics dictate like this.”

The analyst, who was not authorised to speak publicly about personnel changes, said he believed if the political situation in Hong Kong stabilised, the situation at Cathay should as well.

Daiwa Capital Markets analyst Kelvin Lau said the extradition bill’s withdrawal was positive for Cathay, even though protests were not expected to end immediately.

“We expect this to be a turning point where the situation would at least not worsen,” he said in a note to clients, adding that recent personnel changes at the airline should satisfy the requirements of the Chinese regulator and were likely to instill confidence among customers.

China’s aviation regulator last month said crew who engaged in the anti-government protests in Hong Kong posed a threat to safety and should be suspended from staffing flights to the mainland and over its airspace.

(Reporting by Donny Kwok and Jamie Freed, writing by Jamie Freed, editing by Richard Pullin)

Boeing, Aeroflot Announce Contract on 777 Passenger Cabin Modifications

September 3, 2019 / WIL BALDWIN

MOSCOW, August 30, 2019 — Boeing (NYSE: BA) and Aeroflot, today during the Moscow Air Show, announced a contract to modify passenger cabins on 18 of the Russian flagship carrier’s 777-300ER’s.

“Aeroflot is widely recognized as a premium service airline. Designing a new Boeing 777 interior, we aim to enhance our premium quality at every class of service – business, comfort and economy. An updated interior will take Aeroflot to new heights,” said Andrey Chikhanchin, chief financial officer of Aeroflot.

Boeing will perform engineering work and supply component kits for the planned cabin interior reconfiguration.

“It’s a great honor that a leading Russian carrier selected Boeing solutions,” said Stan Deal, president and chief executive officer of Boeing Global Services. “Aeroflot is an experienced 777 operator and we are pleased to provide them with the expertise that will support their implementation, long-term strategic growth and development plans.”

Aeroflot is Russia’s flagship carrier and a proud member of the SkyTeam global airline alliance. Aeroflot serves 159 destinations in 54 countries. Aeroflot’s 249-strong fleet is the youngest of any airline worldwide that operates more than 100 aircraft. In 2018, Aeroflot carried 35.8 million passengers (55.7 million passengers as Aeroflot Group including subsidiaries).

Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 150,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.

Airbus Pulls Out of Canada Fighter Jet Race

August 30, 2019 / WIL BALDWIN

OTTAWA (Reuters) – Airbus SE <EADSY> on Friday pulled out of a multibillion-dollar competition to supply Canada with 88 new fighter jets, a decision that boosts the chances of rival Lockheed Martin Corp <LMT>.

The defense arm of Airbus, which indicated last month it might withdraw, cited onerous security requirements and a late decision by Ottawa to loosen the rules for how much bidders would have to invest in Canada.

Airbus and other contenders had already complained the government appeared to be tilting the race in favor of Lockheed Martin’s F-35 plane, which the Royal Canadian Air Force wants. Canada is part of the consortium that developed the plane.

Canada launched the long-delayed competition last month and said it was confident no favoritism had been shown. Ottawa says the contract is worth between C$15 billion ($11.30 billion) and C$19 billion.

Canada’s official opposition Conservative Party, which is seeking to defeat Liberal Prime Minister Justin Trudeau in an October election, accused the government of gross mismanagement.

Reuters revealed in July that Airbus and Boeing Co <BA.N> had written to Ottawa to say they might pull out.

The firms are unhappy that in late May, the government dropped a demand that bidders must guarantee to give Canadian businesses 100% of the value of the deal in economic benefits.

Such legally watertight commitments, which Boeing, Airbus and Sweden’s Saab AB <SAABb.ST> had already agreed to, contradict rules of the F-35 consortium. Ottawa’s move allowed Lockheed Martin to stay in the competition.

“One of the strongest points of our bid was the fact we were willing to make binding commitments,” said an Airbus source, who requested anonymity given the sensitivity of the situation.

“Once this was loosened up to a point where these commitments were no longer valued in the same way”, the firm decided “that’s just too much”, added the source, who also cited security challenges.

European jets must show they can meet stringent standards required by the United States, which with Canada operates the North American Aerospace Defense Command.

“NORAD security requirements continue to place too significant of a cost on platforms whose manufacture and repair chains sit outside the United States (and) Canada,” Airbus said in a statement.

Canadian Procurement Minister Carla Qualtrough said she respected the Airbus decision, adding Ottawa was determined there should be a level playing field.

“This included adapting the economic benefits approach to ensure the highest level of participation among suppliers,” she said in emailed comments.

Canada has been trying unsuccessfully for almost a decade to purchase replacements for its aging F-18 fighters. The former Conservative administration said in 2010 it would buy 65 F-35 jets but later scrapped the decision, triggering years of delays and reviews.

Trudeau’s Liberals took power in 2015 vowing not to buy the F-35 on the grounds that it was too costly, but have since softened their line.

“Justin Trudeau has spent the past four years delaying and dithering on new fighter jets for Canada only to completely mismanage the competition process,” said Conservative defense spokesman James Bezan.

Lockheed Martin declined to comment while Boeing and Saab did not respond to requests for comment.

($1 = 1.3275 Canadian dollars)

(Reporting by David Ljunggren; Editing by David Gregorio)

New Macau Leader Backed by Beijing

August 25, 2019 / WIL BALDWIN

HONG KONG, Aug 25 (Reuters) – The Chinese territory of Macau elected former legislature head Ho Iat Seng as its leader on Sunday – the sole approved candidate.

Ho, who has deep ties to China, is expected to cement Beijing’s control over the special administrative region and distance it from protests in neighbouring Hong Kong.

He secured 392 votes from a 400-member pro-Beijing committee to lead the world’s largest gambling hub for at least the next five years, public broadcaster TDM reported.

The 62-year-old’s highly scripted appointment comes as the former Portuguese colony tries to position itself as a beacon of stability and model for the Chinese government’s “one country, two systems” formula through which Beijing administers Macau and Hong Kong.

Although anti-government protests have roiled the former British colony of Hong Kong for nearly three months, Macau has seen little dissent to Beijing’s rule.

Ho said local youth could resist the influence of Hong Kong’s protesters and support measures to boost patriotism in Macau.

(Reporting by Farah Master; Editing by Raju Gopalakrishnan)

African Court Impounds Tanzanian Airplane

August 24, 2019 / WIL BALDWIN

DAR ES SALAAM/JOHANNESBURG, Aug 24 (Reuters) – South African authorities impounded an Airbus 220-300 aircraft leased by Tanzania’s national flag carrier following a court application by a retired farmer who is owed compensation by the Tanzanian government, the farmer’s lawyer said.

The plane had been scheduled to fly from the Oliver Tambo International Airport in Johannesburg, South Africa, to Dar es Salaam, Tanzania on Friday, but was seized on an order issued by the Gauteng High Court in Johannesburg, Tanzania’s transport ministry said in a statement on Friday.

Roger Wakefield, of Werksmans Attorneys, said his client, an elderly farmer who asked not to be named, was owed $33 million, including interest, in compensation from the Tanzanian government after his land in the country was expropriated several decades ago. The farmer was subsequently awarded the compensation in an arbitration, he said.

Wakefield said the only way Tanzania could secure the release of the plane was if it put up security or paid the debt.

A Tanzanian government spokesperson was not immediately available for comment.

Calls to the High Courts in Gauteng province went unanswered outside of usual business hours.

Speaking by phone to Reuters, Wakefield said the plane was impounded in line with South African and international laws allowing for an asset owned by a foreign entity to be attached to a case related to a foreign arbitration award.

The plane was chosen because there is evidence it is owned directly by the Tanzanian government and its value is commensurate with the amount owed to the farmer, who was born in Namibia, he said.

While the Tanzanian government has acknowledged it owes the farmer money, has previously made some payments and promised to pay the rest, it has not made a payment since around 2014, Wakefield said.

The plane is leased by loss-making state carrier Air Tanzania Company Limited (ATCL).

President John Magufuli has personally taken charge of the revival of the airline, spending hundreds of millions of dollars purchasing eight new planes since 2016.

The airline’s existing fleet, which is leased from the state-run Tanzania Government Flight Agency (TGFA), includes one Boeing 787-8 Dreamliner, two Airbus A220-300 jets and three DHC Dash 8-400 aircraft, formerly known as the Bombardier Q400 turboprop.

ACTL managing director Ladislaus Matindi told Reuters earlier on Saturday that the impounded plane was an Airbus 220-300, and arrangements had been made for its passengers to use another plane for their planned flight.

Tanzania has pinned hopes on the revival of the national airline to turn the country into a regional transport hub and boost the tourism sector, its biggest foreign exchange earner.

In 2017, a Canadian construction firm seized one of Tanzania’s new Q400 turbo-prop planes in Canada over a $38 million lawsuit related to a compensation ruling by the International Court of Arbitration.

The Q400 was released in March 2018 after Magufuli sent the country’s prime minister and attorney general to Canada to negotiate its release. Aviation sources said the government reached a financial settlement to secure the aircraft.

(Reporting by Fumbuka Ng’wanakilala in Dar es Salaam and Emma Rumney in Johannesburg Writing by Hereward Holland and Emma Rumney Editing by Angus MacSwan and Frances Kerry)

Boeing Selected for A-10 Thunderbolt II Re-Winging Contract

August 21, 2019 / WIL BALDWIN

– Eleven-year award builds on more than a decade of A-10 support

PLANO, Texas, Aug. 21, 2019 /PRNewswire/ — Boeing (NYSE: BA) will continue its legacy of A-10 Thunderbolt II sustainment work under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract award from the U.S. Air Force (USAF), with a maximum ceiling value of $999 million.

Under the contract, which was competitively awarded, Boeing will be responsible for managing the production of a maximum of 112 wing sets and spare kits. The USAF ordered 27 wing sets immediately at contract award.

“Boeing is honored to be selected to continue as the A-10 Thunderbolt II wing kit contractor,” said Pam Valdez, vice president of Air Force Services for Boeing Global Services. “Our established supply base, experience with the A-10 structures, and our in-depth knowledge of the U.S. Air Force’s requirements will help us deliver high-quality wings to meet the customer’s critical need.”

Boeing will team with Korean Aerospace Industries and other key suppliers to deliver the first wing sets to Hill Air Force Base in Ogden, Utah.

Under a previous contract, Boeing delivered 173 enhanced wing assemblies.

Ferrari Will Expand its Lineup of Road Cars

August 18, 2019 / WIL BALDWIN

PEBBLE BEACH, Calif. (Reuters) – Italian premium sports car maker Ferrari NV will expand sales of easier-driving grand touring cars, but will not try to chase rival Porsche’s annual sales volume, Ferrari Chairman John Elkann told an audience of classic car enthusiasts gathered at this storied golf resort on the Pacific coast.

Elkann also reiterated that Fiat Chrysler Automobiles NV, of which he is chairman, remains open to opportunities to combine with other automakers, but is positioned to remain independent. Fiat Chrysler in May proposed a merger with French automaker Renault SA, but the deal fell apart after the French government intervened and Elkann withdrew the proposed merger.

Fiat Chrysler Chief Executive Mike Manley sent the same message to Renault and other would-be partners earlier this month.

Elkann visited Pebble Beach during the annual Concours d’Elegance, during which wealthy collectors bring some of the world’s rarest vintage automobiles to be admired — and sold — and premium manufacturers showcase exotic new models.

Ferrari is best known for flashy, high performance sports cars. Among fans of vintage Ferraris, more understated GT, or grand touring, cars from the 1960s, some with seating for four people, are among the most popular models on auction blocks and at enthusiast events. GT cars were designed to be comfortable on longer road trips.

Elkann hinted Ferrari will unveil a new GT type car in November. Ferrari has said previously that about 40% of its total sales could come from GT cars by 2022, up from 32% now.

Ferrari has outlined plans to expand revenue to 5 billion euros ($5.54 billion) by 2022 from 3.4 billion euros in 2017. The company has said it plans to add a model called the Purosangue to compete with a growing stable of sport utility vehicles wearing premium sports car brands, such as the Lamborghini Urus.

Rival Porsche AG, a unit of Volkswagen AG, has expanded its sales to more than 250,000 sports cars and sport utility vehicles annually. Elkann said Ferrari is not aiming for Porsche’s level of sales.

($1 = 0.9018 euros)

(Reporting By Joe White; editing by Diane Craft)