Tag: agreement (Page 19 of 20)

SpaceX Sues U.S. Air Force Over Rocket-Building Contracts

May 22, 2019 / WIL BALDWIN

ORLANDO, Fla. (Reuters) – Billionaire Elon Musk’s SpaceX accused the U.S. Air Force of breaking contracting rules when it awarded money to three rocket makers but passed on Musk’s rival bid, and said the tender should be reopened, according to a court filing unsealed on Wednesday.

In the complaint, Space Exploration Technologies Corp said contracts were awarded for three “unbuilt, unflown” rocket systems that would not be ready to fly under the government’s timeline, “defeating the very objectives” outlined by the Air Force’s program.

SpaceX asked the court to force the Air Force to reopen the $2.3 billion Launch Service Agreements competition and reconsider the Hawthorne, California-based company’s proposal.

The agreement is part of a Department of Defense initiative to assure constant military access to space and curb reliance on Russian-made RD-180 engines.

In the watershed race for dominance in the space industry, new entrants including SpaceX and billionaire Jeff Bezos’ Blue Origin, compete for lucrative contracts for military launch services. The arena has been long dominated by incumbents like Boeing Co-Lockheed Martin Corp’s United Launch Alliance (ULA).

ULA was granted $967 million under the program for developing its heavy-lift Vulcan rocket, Blue Origin won $500 million for its New Glenn rocket, and Northrop Grumman Corp was awarded $791.6 million for its OmegA rocket development.

In separate court filings this week, all three companies argued they should be parties to the lawsuit because of their direct financial interest in its outcome.

A SpaceX spokesperson said the company sued to “ensure a level playing field for competition.”

Representatives for the Air Force and ULA did not immediately respond to requests for comment. Blue Origin declined to comment.

SpaceX’s complaint was filed with the U.S. Court of Federal Claims last Friday under seal, along with a request for the court to keep the proceedings secret under a protective order, citing proprietary information. A redacted complaint was filed Wednesday.

SpaceX alleged the Air Force broke contracting rules on five different counts and asked the court to halt deliveries of the award to the three companies and force a re-evaluation of the proposals.

The Air Force rejected a formal objection from SpaceX in April regarding the terms of the awards.

SpaceX has sued the government over contracts before, most prominently in 2014 to protest a multibillion-dollar, non-compete contract for 36 rocket launches to United Launch Alliance. It dropped the lawsuit after the Air Force agreed to open up the competition.

(Reporting by Joey Roulette in Orlando, Florida; Editing by Eric M. Johnson and Richard Chang)

FILE PHOTO: SpaceX headquarters is shown in Hawthorne, California, U.S. September 19, 2018. REUTERS/Mike Blake/File Photo

Southwest Ends Mechanics Dispute as American’s Heats Up

May 21, 2019 / WIL BALDWIN

CHICAGO, May 21 (Reuters) – Southwest Airlines Co’s mechanics union said on Tuesday its members had overwhelmingly voted to ratify a tentative contract agreement with the airline, ending seven years of labor negotiations fraught with legal disputes and flight disruptions.

The agreement came a day after rival U.S. carrier American Airlines Group Inc said it was filing a lawsuit against its own mechanics alleging an illegal slowdown aimed at disrupting operations to improve their position in labor talks, which began in 2015.

Analysts have highlighted labor issues as a main concern for airlines this year.

Mechanics at both American and Southwest have complained that the airlines are moving to outsource maintenance work that has traditionally been done in-house.

In a statement on its website, the Aircraft Mechanics Fraternal Association, which represents around 2,500 Southwest mechanics, said about 95 percent of its members had voted to accept the labor agreement.

Separately on Tuesday, American Airlines’ mechanics association said it was “ready and willing” to negotiate a fair contract.

“We would much prefer to be at the negotiating table than in a legal battle brought on by American,” the TWU-IAM Association said in a statement.

(Reporting by Tracy Rucinski Editing by Susan Thomas and Bill Berkrot)

BRX Holdings to buy Pioneer Railcorp for $18.81 Per Share

May 17, 2019 / WIL BALDWIN

PEORIA, Ill., May 17, 2019 /PRNewswire/ — Pioneer Railcorp (OTC: PRRR, “Pioneer”), a railroad holding company that owns short-line railroads and several other railroad-related businesses including a railroad equipment company and a contract switching services company, and BRX Transportation Holdings, LLC (“BRX”), an entity formed by Brookhaven Rail Partners (“Brookhaven”) and Related Infrastructure (“Related”), announced entry into a definitive merger agreement under which BRX will acquire Pioneer for $18.81 per share in cash. The agreement, which has been unanimously approved by Pioneer’s independent directors, represents a premium of approximately 100.7% over Pioneer’s closing stock price on May 16, 2019, the last trading day prior to the announcement of the transaction.

“We look forward to this next chapter in Pioneer’s journey and anticipate it will have a bright future under new ownership,” said Mike Carr, President and Chief Executive Officer of Pioneer.

“We are excited to partner with Related Infrastructure and to have worked with Pioneer’s management and board on a transaction that brings great value to its shareholders, its customers, and the communities it serves. Pioneer fits perfectly with Brookhaven’s philosophy of identifying opportunities where our hands-on management expertise, proprietary value creation strategies, and deep industry relationships provide us with a competitive advantage and the ability to create value,” said Alex Yeros, Principal of Brookhaven.

Related Infrastructure, a subsidiary of Related Fund Management which has raised over $5 billion of capital across a variety of different investment vehicles and strategies, invests in companies that develop, operate and service transportation infrastructure throughout the United States. Andrew Right, Managing Partner of Related Infrastructure said, “We are pleased to partner with Brookhaven to build a rail-based infrastructure platform. We appreciate the work Mike Carr and his team have done to create the Pioneer portfolio of rail businesses. We look forward to working with Alex and the entire team at Brookhaven, an industry leading team with over 25 years of experience building businesses in the short-line rail industry to further drive expansion of the platform.”

Under the terms of the merger agreement, BRX will acquire through merger all of the outstanding shares of Pioneer’s Class A common stock. Shareholders other than Pioneer’s subsidiary, Heartland Rail Investments LLC, will receive $18.81 per share in cash and the Heartland shares will be canceled without consideration.

In connection with the execution of the merger agreement, certain stockholders of Pioneer, together holding a significant portion of the outstanding shares of common stock of Pioneer, have agreed to vote their shares in favor of the transaction under a voting and support agreement.

The consummation of the merger is subject to various closing conditions, including approval by Pioneer’s shareholders, Surface Transportation Board approval, and operating performance by Pioneer within a specified working capital floor and debt ceiling. The merger is not subject to a financing condition. Subject to satisfaction of the closing conditions, the transaction is expected to close in the third quarter of 2019.

Arnold & Porter is acting as legal advisor to BRX in this transaction. BMO Capital Markets is serving as exclusive financial advisor to Pioneer in connection with this transaction and Briggs and Morgan, P.A. is acting as Pioneer’s legal advisor.

About Pioneer
Pioneer Railcorp is the parent company of 17 short-line common carrier railroad operations, an equipment leasing company, two service companies and a contract services switching company. Pioneer and its subsidiaries operate in the following states: Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Michigan, Mississippi, Ohio, Pennsylvania and Tennessee. For more information on Pioneer, please visit: http://www.Pioneer-Railcorp.com

About Brookhaven
Brookhaven Rail Partners is an affiliate of Denver-based Brookhaven Capital Partners, a privately held, real estate and infrastructure investment and management firm. Brookhaven and its principals have a 25-year track record of investing in, operating and developing critical transportation assets that support industry, and promote new economic development, community investment, and job creation. For more information on Brookhaven, please visit: http://www.BrookhavenPartners.com

EL AL & Alaska Airlines Expand Global Partnership

May 13, 2019 / WIL BALDWIN

With the inaugural EL AL flight between Tel Aviv and San Francisco, EL AL and Alaska Airlines signed an expanded global partnership allowing their members to more easily connect and earn miles.

TEL AVIV, Israel and SEATTLE, May 13, 2019 /PRNewswire/ — EL AL Israel Airlines and Alaska Airlines today expanded their commercial relationship to include a reciprocal frequent flyer agreement. The agreement was signed by the CEOs of each airline at a ceremony soon after the arrival of the first EL AL flight from Tel Aviv to San Francisco and was attended by San Francisco Bay Area dignitaries and civic leaders. This agreement is in addition to the codeshare agreement that recently came into effect between the airlines allowing EL AL to place its “LY” code on various Alaska Airlines “AS” flights in the U.S.

The codeshare agreement which has been available for sale as of April 28th for flights as of May 5th includes flights from Newark, Los Angeles and now San Francisco onto a host of Alaska Airlines flights. From San Francisco, EL AL will place its code on flights to Seattle; San Diego; Portland, Oregon; Honolulu; Los Angeles; Palm Springs, California; Albuquerque, New Mexico; Austin, Texas; Dallas (DAL); Santa Ana, California, Everett, Washington, Kansas City, Missouri; Salt Lake City; Kona, Hawaii and Las Vegas. Upon regulatory approval, will also include flights to various points in Mexico.

With the EL AL and Alaska Airlines partnership, customers will be able to continue their journey to and from North America and Israel with connections on both airlines, in either direction. Both airlines will offer the opportunity for their members to earn miles while flying with the partner airline. Base miles flown on EL AL will also count toward elite status in Alaska’s Mileage Plan program. Additionally, EL AL travelers will be able to redeem their EL AL Matmid miles to book on Alaska flights in the future.

“This is truly a historic day for EL AL,” said EL AL CEO Gonen Usishkin. “Aside from the fact that EL AL is linking the two high-tech centers with the new three times weekly flights, we are providing the full options for our customers with the codeshare and frequent flyer agreements with Alaska Airlines,” he emphasized. “Alaska Airlines was instrumental in helping bring Jews to Israel in the early years of the state, helping to build our country and now as we celebrate 70 years of those historic flights, continue to be a key player along with EL AL in building the bridges between America and Israel.”

“Alaska Airlines and EL AL will now offer more opportunities than ever before for travelers to fly nonstop between the West Coast and Tel Aviv. Through our partnership, both EL AL and Alaska Airlines offer frequent flyer benefits to our guests while sharing the genuine, caring service that is at the heart of both of our airlines,” said Brad Tilden, CEO of Alaska Airlines. Alaska Airlines offers an option to go global differently with hand-picked partners, and Mileage Plan miles can be used at home with Alaska or with Alaska Global Partners. With the EL AL partnership, Alaska Airlines’ international connectivity out of SFO is stronger than ever; by June 2019, Alaska’s Global Partners will offer more than 80 flights per week out of San Francisco.

The EL AL flights will operate three times weekly flying a state-of-the-art 787 Dreamliner, offering Business, Premium and Economy service. The flights from Tel Aviv will depart on Monday, Wednesday and Friday at 0105 and arrive in San Francisco on the same day at 0600 for a flight time just under 15 hours. The flights from San Francisco to Tel Aviv will operate on Monday and Wednesday departing at 2000 for arrival the next day at 1940 and on Saturday night with a 2245 departure arriving in Tel Aviv at 2225 the next day for a flying time of just over 13 and a half hours.

About EL AL Israel Airlines

EL AL Israel Airlines, Israel’s national airline, established in 1948, offers more nonstop flights than any other airline to/from Israel. EL AL currently flies to 36 destinations from Israel, serves hundreds of other destinations throughout the world via codeshare, and interline partnerships. EL AL offers a full Boeing fleet and began renewing its fleet as of September 2017 with the arrival of the first of its sixteen 787 Dreamliner aircraft. Soon to be new routes will include Las Vegas, Chicago and Orlando (summer seasonal flights only) in the USA. In 2017 EL AL flew over 5.6 million passengers. EL AL embodies Israel’s values of innovation and caring and is known for its genuine Israeli hospitality. Learn more about EL AL at: www.elal.com.

About Alaska Airlines

Alaska Airlines and its regional partners fly 44 million guests a year to more than 115 destinations with an average of 1,200 daily flights across the United States and to Mexico, Canada and Costa Rica. With Alaska and Alaska Global Partners, guests can earn and redeem miles on flights to more than 900 destinations worldwide. Alaska Airlines ranked “Highest in Customer Satisfaction Among Traditional Carriers in North America” in the J.D. Power North America Airline Satisfaction Study for 11 consecutive years from 2008 to 2018. Learn about Alaska’s award-winning service at newsroom.alaskaair.com and blog.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (ALK).

Qatar Airways Says Air Italy Stake Is In Compliance

April 11, 2019 / WIL BALDWIN

DUBAI (Reuters) – State-owned Qatar Airways on Thursday dismissed concerns its 49 percent stake in Air Italy breaches a 2018 aviation agreement between the United States and Qatar, designed to address U.S. concerns that Gulf airlines had an unfair competitive advantage.

The U.S is “looking very closely” at the deal after Republicans and Democrats said on Wednesday they were concerned it violated the agreement.

Qatar Airways bought a stake in Italian airline Meridiana in 2017, rebranded it Air Italy and transformed it into a carrier with five announced non-stop U.S. destinations from Milan.

Qatar Airways said the stake was “fully compliant” with the 2018 U.S.-Qatar Understandings, an additional pact that accompanied the U.S-Qatar Open Skies agreement.

Since 2015 the largest U.S carriers – Delta Air Lines, American Airlines Group and United Airlines – have argued their Gulf rivals are being unfairly subsidized by their governments, distorting competition.

Gulf airlines have always denied those accusations and last year separate voluntary agreements were reached between the U.S. and Qatar, and the U.S. and the United Arab Emirates to address the concerns. Measures included the airlines not adding new flights to the U.S.

However, Air Italy has been flying to New York and Miami since June last year and was due to start serving San Francisco and Los Angeles from this month and Chicago in May.

Qatar Airways said in a statement its investment in Air Italy, which closed in September 2017, preceded the 2018 agreement but complied with it.

It said its investments in other airlines were not raised as a point of concern during the discussions that led to the 2018 agreement and that the deal does not mention or prohibit cross-border investments.

Qatar Airways also said it did not codeshare on Air Italy’s flights to the U.S. and has no plans to do so.

(Reporting by Alexander Cornwell; Editing by Alexandra Hudson)

Elbit Systems to Acquire Harris Night Vision Business

April 8, 2019 / WIL BALDWIN

HAIFA, Israel, April 5, 2019 /PRNewswire/ — Elbit Systems Ltd. (ESLT) (ESLT) (“Elbit Systems”) announced today that its U.S. subsidiary, Elbit Systems of America, LLC (“Elbit Systems of America”), has signed a definitive agreement with Harris Corporation (HRS) (“Harris”) for the acquisition of Harris’ Night Vision business (“Harris Night Vision”) for a purchase price of $350 million.

The transaction is conditioned on completion of Harris’ proposed merger with L3 Technologies, Inc. (LLL), as well as customary closing conditions, including receipt of regulatory approvals.

Headquartered in Roanoke, Virginia, Harris Night Vision is a premier developer, producer and supplier of night vision technology for the U.S. and allied military and security forces and for the federal homeland security market.

Bezhalel (Butzi) Machlis, Elbit Systems President & CEO, commented: “The market position and technological strength of Harris Night Vision make this acquisition significant to our long-term growth strategy, with a particular focus on the U.S. Elbit Systems of America has a proven track record of providing high performance solutions and support services to the U.S. defense and homeland security markets. We believe that the completion of this acquisition will be beneficial both for Elbit Systems and for Harris Night Vision’s employees and customers.”

About Harris Corporation

Harris Corporation is a leading technology innovator, solving customers’ toughest mission-critical challenges by providing solutions that connect, inform and protect. Harris supports government and commercial customers in more than 100 countries and has approximately $6 billion in annual revenue. The company is organized into three business segments: Communication Systems, Electronic Systems and Space and Intelligence Systems. Learn more at harris.com.

About Elbit Systems

Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land, and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (“C4ISR”), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios and cyber-based systems and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems.

Will United Airlines Back Out of Coliseum Naming Rights Deal?

April 1, 2019 / WIL BALDWIN

Rumors are starting to swirl that United Airlines is considering backing out of a $69 million deal to add its name to the Los Angeles Memorial Coliseum.

The deal, which was offered to the University of Southern California in 2018, was offered by the Chicago-based airline to call the stadium “The United Airlines Memorial Coliseum.”

Once the deal became public knowledge, criticism began to mount that the re-branding could tarnish the image of the stadium that was named in honor of those lost during World War I.

The Coliseum is currently going under a $270 million renovation by the university, which has responded to the airlines concerns by stating that “They are open to accepting the wishes of the veteran community to modify the name change agreement.”

United Airlines has responded to university officials that it has made “a significant commitment to financing this project” in exchange for the naming rights. The airline went on to add that “If USC is not in a position to honor the terms of the agreement, including in particular the name change, United would be amenable to abiding by the wishes of the community, stepping away from this partnership with USC, and mutually terminating the agreement.”

USC has responded that they are “open” to changing the agreement, but did not provide any further details.

United Bids for 6 New Slots at Tokyo’s Haneda Airport

February 21, 2019 / WIL BALDWIN

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

Embraer Signs Contract to Support Air Astana E2 Jet Fleet

February 13, 2019 / WIL BALDWIN

Amsterdam, The Netherlands, February 13th, 2019 – Embraer and Air Astana, a flag carrier of Kazakhstan, have reached a multiyear agreement on a Flight Hour Pool Program to support the component needs for the airline’s new E2 fleet, Embraer’s second generation of the E-Jets family of commercial aircraft.

The E2’s entry into service marks the beginning of Air Astana’s fleet renewal. Currently the airline operates a fleet of nine E190s aircraft, the first of which was delivered in 2011, when the airline joined Embraer Pool Program. Now, with the extension of the pool program for the new E190-E2s, Air Astana have extended their trust in our strong partnership.

Air Astana took delivery of its first E190-E2 jet in December 2018 and flies the new aircraft on domestic and Commonwealth of Independent States (CIS) routes. The airline will receive four additional E190-E2s in 2019, with the last of the five aircraft, all of which are leased by AerCap, being delivered in the final quarter of 2019.

The Pool Agreement for the airline’s E190-E2 fleet will cover unlimited access and full repair coverage for more than 325 components with almost a third of them exclusively placed at airline’s main base to ensure high fleet availability.

“We are proud that Air Astana has chosen to place its trust in us to support its new E2 fleet, further reinforcing Embraer’s commitment to customers in the region with TechCare portfolio of solutions. It is a strong endorsement for the program and Embraer services, proving customers loyalty to the state of the art support of the OEM (Original Equipment Manufacturer) with a competitive value,” said Johann Bordais, President and CEO of Embraer Services & Support.

“The support of the OEM is a natural fit for Air Astana as we transition into our new fleet of Embraer’s second generation of E-Jets. This was fundamental in our decision to join the program, which will allow us to upkeep our daily operations as it offers cost effective and practical solutions, guaranteeing efficiency and competitive results,” said Peter Foster, CEO of Air Astana.

Embraer’s Flight Hour Pool Program, which currently supports more than 40 airlines worldwide, is designed to allow airlines to minimize their upfront investment on expensive repairable inventories and resources and to take advantage of Embraer’s technical expertise and its vast component repair service provider network. The results are significant savings on repair and inventory carrying costs, reduction in required warehousing space, and the elimination of resources required for repair management, while ultimately providing guaranteed performance levels.

The E190-E2 is the first of three new aircraft types that will make up the Embraer E2 family of aircraft developed to succeed the first-generation of E-Jets. Embraer Services & Support has implemented the E2 Pool Program to support operators from the very first day of delivery. Widerøe, the largest regional airline in Scandinavia and launch customer for the E190-E2, received its first E2 aircraft on April 2018. Currently, 100% of the delivered E2 E-Jets are supported by the program.

This Pool Program is part of a suite of services that Embraer offers to support the worldwide growing fleet of Embraer aircraft through TechCare, the new Embraer platform that assembles the entire portfolio of products and solutions to deliver the best experience of services and support.

Boeing to Optimize Crew Operations for Royal Air Maroc

February 12, 2019 / WIL BALDWIN

Agreement is the first of its kind between Boeing and an African airline

DUBAI, United Arab Emirates, Feb. 12, 2019 /PRNewswire/ — Boeing [NYSE: BA] today announced an agreement with Royal Air Maroc to use a suite of Boeing AnalytX-powered crew solutions to bring greater efficiency to the airline’s planning and operations. The airline will be the first in Africa to use the advanced solutions, which include Crew Pairing, Crew Rostering and Crew Tracking — with options to add modules in the future.

“We are excited to bring the most advanced data analytics capabilities to support Morocco’s flag carrier,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company. “Our Crew Optimization solutions were created to help our customers optimize staffing across their entire fleet.”

Crew Pairing helps airlines create optimized work duties, improving staffing efficiency and overall safety, while minimizing costs. Crew Rostering allows airlines to build rosters that respect crew members’ preferences and constraints. Crew Tracking helps airlines detect, resolve and follow-up on changes to crew planning.

The Boeing AnalytX-powered Crew Optimization products are provided through Boeing subsidiary Jeppesen.

Operating as one of Boeing’s three business units, Global Services is headquartered in the Dallas area. For more information, visit www.boeing.com/services

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