(Reuters) – Boeing Co <BA> reported its worst annual net orders in decades on Tuesday, along with its lowest numbers for plane deliveries in 11 years, as the grounding of its 737 MAX jet saw it fall far behind main competitor Airbus <EADSY>.
Boeing’s gross orders plunged 77% to 246 in 2019, while net orders after cancellations or conversions were just 54 airplanes compared with 893 the previous year.
After an accounting adjustment representing jets ordered in previous years but are now unlikely to be delivered, Boeing said its net total for orders this year sank to a negative 87 airplanes.
As a result, Boeing’s book-to-bill ratio, which measures orders against deliveries, came in at a negative 0.23 in 2019.
Boeing said unidentified customers canceled orders for three 787-9’s in December and another customer canceled an order for a 787-8.
Ten months after the MAX was grounded in March following two fatal crashes, Boeing still has a backlog of more than 5,400 orders for its long- and short-distance commercial jets.
By comparison, Airbus said earlier this month it racked up a net 768 orders last year after cancellations and delivered a record 863 planes.
Boeing said on Tuesday deliveries fell by 53% to 380 planes over the whole of last year, as the MAX’s grounding made it impossible for it to deliver the planes to customers, forcing it to halt production last month and lose the top spot to its European rival for the first time in eight years.
Planemakers receive most of their revenue when aircraft are delivered – minus accumulated progress payments – making final delivery crucial for their finances.
Analysts estimate that Boeing has been losing around $1 billion a month because of the grounding and it reported an almost $3 billion negative free cash flow in the third quarter. Fourth-quarter figures are due on Jan. 29.
Boeing parted ways with Chief Executive Officer Dennis Muilenburg last month as it became increasingly clear that he was making little headway in resolving the crisis.
The company is still working to fix the MAX and there is little clarity on when Boeing is likely to get the green light from regulators to bring the airplane back into service, making analysts and investors jittery about the company’s prospects in 2020.
(Reporting by Tim Hepher in Paris, and Ankit Ajmera and Rachit Vats in Bengaluru; Editing by Patrick Graham, Shounak Dasgupta and Amy Caren Daniel)
Unpainted Boeing 737 MAX aircraft are seen parked at Renton Municipal Airport in Renton
CHICAGO, Dec. 5, 2019 /PRNewswire/ — United Airlines (NASDAQ: UAL) today announced that Oscar Munoz, Chief Executive Officer, will transition to the role of Executive Chairman of the Board of Directors of United Airlines Holdings, Inc. in May 2020. As CEO, Munoz has transformed United’s culture and set new standards of operational and financial performance. J. Scott Kirby, President, will succeed Munoz as Chief Executive Officer.
“With United in a stronger position than ever, now is the right time to begin the process of passing the baton to a new leader,” Munoz said. “One of my goals as CEO was to put in place a successful leadership transition for United Airlines. I brought Scott to United three years ago, and I am confident that there is no one in the world better equipped to lead United to even greater heights. It has been the honor of my career to lead the 95,000 dedicated professionals who serve United’s customers every day. I look forward to continuing to work closely with Scott in the months ahead and supporting the company’s ongoing success in my new role.”
Kirby was recruited to United Airlines by Munoz in August 2016, after a three-decade career in the commercial airline business. His appointment reflects a commitment from Munoz and the Board to preserve leadership continuity and demonstrates confidence in the airline’s strategy and current trajectory.
“When I joined United as CEO, I laid out ambitious goals to build a new spirit of United by regaining the trust of our employees and customers – and I’m proud of how far we’ve come,” Munoz said. “Along with the successful implementation of the plan our team laid out in January 2018, United’s operational and financial performance isn’t just better – it’s better than ever. By instilling a culture of ‘proof not promise,’ we have transformed United even faster than we expected and there’s an incredible sense of excitement about the future.”
Kirby, a highly-regarded industry leader, has played a pivotal role in enabling United’s cultural transformation and successfully executing the company’s strategic growth plan.
“I am honored to be named the next CEO of United and to succeed Oscar, whose leadership has been truly transformational for United Airlines,” Kirby said. “I look forward to working with Oscar, the Board, our established leadership team and every United employee as we drive forward our proven strategy and focus on being the airline customers choose to fly and return to time and again.”
Munoz will serve as Executive Chairman for a one-year term and will continue to work closely with Kirby, the Board and the United team in shaping United’s employee and customer-centric culture. He will also lead the company’s Board and continue to engage on behalf of United with a range of external stakeholders.
As part of this transition, United’s current Chairman, Jane Garvey, will retire from the Board in May 2020 after more than a decade of exceptional service, including serving as Chairman since May 2018. At the request of the Board, Garvey agreed to remain in her role for a year beyond the Board’s mandatory retirement age.
“On behalf of the Board of Directors, I cannot thank Oscar enough for his outstanding leadership and commitment to United, and we are pleased that we will continue to benefit from his expertise and experience in his role as Executive Chairman,” Garvey said. “Oscar became CEO at one of the most challenging points in United’s history, and his focus on putting customers and employees first has transformed United’s culture today and successfully positioned the company for tomorrow. One of Oscar’s greatest legacies is the best-in-class leadership team he has built, and we have full confidence that Scott is the ideal candidate to lead United into the bright future that lies ahead.”
The company also announced that Ted Philip will become Lead Independent Director following the 2020 Annual Meeting of Shareholders. Philip joined the Board in July 2016 and chairs the Nominating/Governance Committee. He also currently serves on the Board of Directors of Hasbro, Inc. and BRP Inc.
“I could not be more excited about the opportunity that we have at United over the next several years to fulfill this airline’s incredible potential,” Philip said. “I am proud to work alongside Oscar in guiding United’s Board and leadership team, and I am eager to get to work on delivering for all of our stakeholders. The entire Board and I want to thank Jane for her many contributions to United over the last decade, including her highly successful tenure as Chairman.”
All of the changes announced today will take effect following the company’s Annual Meeting of Shareholders, scheduled for May 20, 2020.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers’ best interests at the heart of its service. In addition to today’s news, United recently announced that MileagePlus miles will now never expire, giving members a lifetime to use miles on flights and experiences. Customers now have more free on board snack options as well, with a choice of Lotus Biscoff cookies, pretzels and the Stroopwafel. The airline also recently released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver – a tool dedicated to improving the experience for customers connecting from one United flight to the next – and launched PlusPoints, a new upgrade benefit for MileagePlus premier members.
DETROIT (Reuters) – Tesla Inc’s <TSLA> Model 3 and S sedans both regained “recommended” status in Consumer Reports magazine’s annual reliability survey, allowing the electric carmaker’s overall standing to rise slightly.
Tesla’s ranking improved four spots to No. 23 out of 30 brands in the U.S. market as it worked to resolve production problems with the Model 3, said Jake Fisher, senior director of auto testing at Consumer Reports. Both the Model 3 and S raised their reliability ratings to “average.”
“People really like their cars,” he said of Tesla owners. “Hopefully, if that frantic rate of change can slow down a bit, they can maintain reliability.”
Tesla has touted the popularity of the Model S, listed in the top ranks of a different Consumer Reports survey, on owner satisfaction, every year since 2013 when the carmaker was first included.
Fisher cautioned he expected Tesla’s reliability to remain fluid given its inconsistent track record.
Tesla’s Model X SUV still ranks among the least reliable models, according to the annual survey released on Thursday.
The poll predicts which new cars will give owners fewer or more problems, based on data collected for more than 400,000 vehicles. Its scorecard is influential among consumers and industry executives.
Reliability rankings tend to suffer when automakers offer new or redesigned models, which dragged down Volkswagen AG’s <VWAGY> namesake and Audi brands. The VW brand slid nine spots to No. 27, while Audi fell seven spots to No. 14.
Brands with no major changes to their lineups, such as Fiat Chrysler Automobiles’ <FCAU> Dodge and Chrysler, made significant gains. Dodge was the highest ranked U.S. brand at No. 8, making the biggest gain of 13 spots. Chrysler rose seven spots to No. 19, while Jeep finished at No. 26.
Ford Motor Co’s <F> Lincoln and Ford brands were No. 15 and 16, while General Motors Co’s <GM> Buick, GMC, Chevrolet and Cadillac brands ranked No. 18, 22, 25 and last at 30, respectively.
The reliability of full-sized pickups, the most popular vehicles in the U.S. market, was weak. Ford’s F-150 and FCA’s Ram trucks were rated “well below average,” while GM’s pickups – the Chevrolet Silverado and GMC Sierra – both had “below average” reliability.
Toyota Motor Corp’s <TM> Lexus luxury brand finished atop the survey, followed by Mazda Motor Corp <MZDAY> and the Toyota brand.
(Reporting by Ben Klayman in Detroit; Editing by Richard Chang)
A day after unveiling the new PC-12 NGX single-engine turboprop aircraft at the National Business Aviation Association’s annual Convention and Exhibition (NBAA-BACE), Pilatus reports very strong demand for the new aircraft across the global Authorised Pilatus Sales Centre network.
Based on the PC-12 airframe, of which more than 1,700 aircraft have been delivered, Pilatus introduces the third major evolution of the aircraft, named the PC-12 NGX. Markus Bucher, CEO of Pilatus, revealed the new aircraft at a ceremony on Monday evening. More than 200 guests were on hand for the aircraft’s public debut.
First customers of brand-new PC-12 NGX
On the first public day of NBAA-BACE, three customers were eager to be first in line to purchase the new advanced version of the PC-12.
Australian born Dion Weisler, President and CEO of HP, is the first owner to upgrade from his PC-12 NG to the new NGX. Dion Weisler said: “As an existing, proud and active owner-pilot of a 2017 PC-12 NG, I am amazed by the substantial innovation improvements in what I thought was an impossible aircraft to improve on. I am thrilled to be customer number one for the new PC-12 NGX. Pilatus has done it again – reimagined aviation and taken an already perfect aircraft and magically redefined perfection.”
The first US customer of the new PC-12 NGX is Shon Boney, Co-Founder of Sprouts Farmers Markets, an American supermarket chain. The new PC-12 NGX will actually be Shon Boney’s fourth PC-12.
João Carlos Marinho Lutz will be the first Brazilian customer to take delivery of the new PC-12 NGX. Currently flying a non-pressurised turboprop, he chose the new Pilatus aircraft, because “only the PC-12 NGX can reach farms in remote places where I need to go and amazing destinations in Brazil with comfort, speed and efficiency.”
The new PC-12 NGX is already certified
The PC-12 NGX features a completely new BMW Designworks interior, larger cabin windows inspired by the PC-24 and fully reclining executive seats. The new Pratt & Whitney Canada PT6 E-SeriesTM engine comes with the Electronic Propeller and Engine Control. A fully integrated digital autothrottle and new avionics features by Honeywell, including a touch screen controller, emergency descent mode, tactile roll feedback and protection, and a low speed propeller quiet mode are just some of the features of the new cockpit environment.
The PC-12 NGX prototype first flew in December 2017. More than 600 hours of testing and certification flying were accumulated in Europe, USA and Canada as Pilatus quietly developed the new aircraft. The PC-12 NGX received certification just one week ago on Monday, 14 October 2019.
Pilatus will begin customer deliveries of the new PC-12 NGX early in the second quarter of 2020. The first production PC-12 NGX with serial number 2001 is present on the static display of Pilatus throughout the NBAA-BACE. Contact Pilatus or your nearest Authorised Pilatus Centre for aircraft availability.
The two ultra long-range and exclusive jets are valued at $564 million according to list pricesBoeing Business Jets now has 16 orders for the 787 variant, making it one of the world’s most popular widebody business jets
Las Vegas, Nevada, October 22,2019 — A VIP customer was behind the purchase of two ultra-long range 787-9 Dreamliner airplanes, Boeing [NYSE: BA] announced today at the National Business Aviation Association’s annual convention.
The order, placed in August, has a list price value of $564 million. The VIP customer has requested to be unidentified.
The BBJ 787-9, a business jet version of the technologically-advanced 787-9 Dreamliner, is sought after by customers who place a premium on the jet’s globe-spanning range, spacious cabin and unrivaled passenger comfort. The airplane can fly 9,485 nautical miles while offering amenities such as larger windows, a lower cabin altitude, smooth ride technology, cleaner and higher humidity air, and a quieter cabin.
“The BBJ 787-9 offers our most discerning customers the ability to travel in ultimate comfort and fly directly to just about any city on earth. We’re talking about London to Sydney or Tokyo to Cape Town. Our newest BBJ 787-9 customer can clearly see the possibilities and more,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing for The Boeing Company. “With a total of 16 orders to date, the BBJ 787 program has won over other government and private customers who want to work, rest, and arrive refresh and ready for a productive day.”
The BBJ 787-9 offers one of the most spacious cabins in the industry with 2,775 ft2 (257.8 m2) of space. The spacious cabin provides a large canvas for a range of interior design options to ensure ultimate comfort on those short or long-distance flights.
The BBJ 787 builds on the success of the 787 Dreamliner – the fastest-selling widebody airplane in history with more than 1450 orders from over 80 customers on six continents.
– 28th annual Global Business Aviation Outlook projects 2020 deliveries to be higher than 2019 as new models enter service
– Five-year purchase plans for new business jets down slightly, but plans to buy used jets grow significantly
– Long-range forecast predicts healthy market with steady annual growth
LAS VEGAS, Oct. 20, 2019 /PRNewswire/ — The business jet industry is expected to see strong growth in the short to medium term, supported by several new airplane models coming to the market, according to Honeywell’s (HON) 28th annual Global Business Aviation Outlook. Released today, the Global Business Aviation Outlook forecasts up to 7,600 new business jet deliveries worth $248 billion from 2020 to 2029, down 1 to 2 percentage points from the 2018 10-year forecast.
“Production ramp up on many new business jet platforms are expected to lead to a 7% increase in deliveries in 2020, following a strong projected growth in 2019 over 2018 aircraft deliveries,” said Heath Patrick, president, Americas Aftermarket, Honeywell Aerospace. “We are confident that these new and innovative aircraft models will support solid growth in the short term and have a continuing impact on new business jet purchases in the midterm and long term.”
Key findings in the 2019 Honeywell global outlook include:
Operators plan to make new jet purchases equivalent to about 17% of their fleets over the next five years as replacements or additions to their current fleet, a decrease of 3 percentage points compared with 2018 survey results.
Of the total purchase plans for new business jets over the next 5 years, 35% are expected to occur in the first two years of the survey, with 57% of purchase plans realized by year three. This is 5 percentage points higher than last year’s survey.
Operators continue to focus on larger-cabin aircraft classes, from large cabin through ultralong-range aircraft, which are expected to account for more than 71% of all expenditures of new business jets in the next five years.
ANNAPOLIS, Maryland – Passengers traveling through Las Vegas’ McCarran Airport can look forward to a new streamlined journey with Collins Aerospace Systems’ SelfPass™ biometric solution. The solution, which is set to be installed at all of McCarran’s international gates, and will be available for demonstration at the Annual Airports Council International-North America conference this week in Tampa, Florida. Collins Aerospace is a unit of United Technologies Corp. (NYSE: UTX).
With SelfPass, there is no pre-registration required. Passengers simply step up to the camera for a facial scan to validate their identity against the U.S. Customs and Border Protection Traveler Verification Service, which retrieves their boarding details, and they then proceed to board the aircraft through the auto boarding gate.
“We have a 20-year history of successfully collaborating with McCarran Airport and we’re ready to help them streamline the passenger journey even further with expanded use of our SelfPass biometric solution,” said Christopher Forrest, vice president of Global Airport Systems for Collins Aerospace. “SelfPass takes less than one second to capture and process a passenger’s facial image and eliminates the need to repeatedly present travel documents, making the process more efficient for both passengers, airlines and airports.”
SelfPass is already live with one airline following a trial throughout the summer. Wider deployment of SelfPass is set to commence in November with the addition of a second airline. In all, 19 airlines will be operational when the installation is complete.
In additional to SelfPass, Collins Aerospace has been a long term provider of other key solutions that improve efficiencies at McCarran Airport. The ARINC MUSE Common-use passenger processing solution enables multiple airlines to share check-in desks and departure gates, the ARINC BagLink™ supports efficient and accurate baggage sorting and loading, and ARINC supplies self-service kiosks throughout the facility.
TOKYO, Aug 30 (Reuters) – Japan’s military has asked for an eighth straight annual increase in defence spending to help pay for U.S.-made interceptor missiles, stealth fighters, and other equipment it wants to counter threats from North Korea and China.
The Ministry of Defence budget proposal released Friday calls for spending to increase 1.2 percent to a record 5.32 trillion yen ($50.48 billion) in the year starting April 1. Finance ministry officials will scrutinise the request before it is approved by Prime Minister Shinzo Abe’s cabinet.
Already one of the world’s biggest military spenders despite a constitution that forbids the possession of weapons to attack other countries, Japan has increased military outlays by a tenth over the past seven years. That growth is being driven by alarm over military build ups by its neighbours.
Japan’s spending, much of it on advanced weapons from the United States, has benefited the likes of Lockheed Martin Corp and Raytheon Co, and worried local contractors such as Mitsubishi Heavy Industries who have seen their share of defence spending shrink.
U.S. President Donald Trump has thanked Japan for buying the expensive U.S. equipment, helping curtail criticism of Japan amid trade tensions between Tokyo and Washington.
For the next fiscal year, Japan’s defense officials have asked for 115.6 billion yen to buy nine Lockheed Martin F-35 stealth fighters, including for the first time six short take-off and vertical landing (STOVL) B variants that it wants to operate from aircraft carriers. That purchase will help Japan project military power by extending the range at which the country’s Self Defense Forces can operate.
The defence ministry also wants 116.3 billion yen to bolster ballistic missile defences (BMD), including money for a new generation of interceptor missiles designed by Raytheon to shoot down incoming warheads in space. It also wants funds for vertical launch systems for ships and two planned ground-based Aegis Ashore radar missile tracking stations.
($1 = 105.3900 yen)
(Reporting by Tim Kelly; Editing by Michael Perry)
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.
North Carolina boatbuilder will exclusively offer Garmin electronics as standard fit on all offshore sportfishing center consoles in 2020
Garmin International, Inc., a unit of Garmin Ltd. (NASDAQ:GRMN), today announced that Regulator Marine has selected Garmin to be its premier electronics supplier to outfit its full line of offshore sportfishing center console boats beginning model year 2020. Garmin electronics will be standard equipment on all Regulator boats ranging from 23 to 41 feet, including the new Regulator 26XO center console crossover, the company announced at its annual dealer meeting, July 23-25.
“It’s truly an honor to know that every new Regulator boat leaving the factory will include Garmin electronics,” said Dan Bartel, Garmin vice president of global consumer sales. “Garmin and Regulator share a passion for designing and engineering products without compromise, and we’re confident that having our award-winning electronics onboard will meet and exceed the needs of the Regulator customer.”
“We are honored to offer our customers what we believe are the finest electronics available today. Every new 2020 model year Regulator will come standard with a Garmin electronics package. From quality to innovation, our customers want it all and we know from our years of experience working together, that Garmin is the perfect fit,” said Joan Maxwell, Regulator Marine president and co-founder.
Regulator will be factory-installing the award-winning GPSMAP® 8600 chartplotter series, offering display sizes ranging from 12 to 17 inches, with models 28-feet and over offering dual 16- or 17-inch displays. Built for mariners who demand high performance, ease-of-use and feature integration, the GPSMAP 8600 series offers premium features like built-in sonar, preloaded BlueChart® g3 cartography with Navionics data, IPS touchscreen displays, full network capabilities and more. Each boat will also come standard with a Garmin VHF marine radio. Other electronics selected by Regulator include the GMR™ xHD2 open array radar series and the award-winning Reactor™ 40 Hydraulic Autopilot with SmartPump, Garmin’s most responsive autopilot system with AHRS technology. Several fishing and convenience upgrade packages are also available to ensure customers can choose additional electronics to fit their needs.
Garmin is the world’s leading marine electronics manufacturer1 and was recently named Manufacturer of the Year for the third consecutive year by the NMEA, an honor given to the most recognized marine electronics company for support of products in the field. Garmin’s portfolio includes some of the industry’s most sophisticated chartplotters and touchscreen multifunction displays, sonar technology, high-definition radar, autopilots, high-resolution mapping, sailing instrumentation, audio, entertainment and other products and services that are known for innovation, reliability, and ease-of-use. Other Garmin marine brands include FUSION® Entertainment, Navionics—a premier supplier of navigation charts, and EmpirBus™. To learn more, visit www.garmin.com/marine.
About Garmin International Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin, GPSMAP, BlueChart and FUSION are registered trademarks and GMR and Reactor are trademarks of Garmin Ltd. or its subsidiaries.
All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.
Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 29, 2018, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such Form 10-K is available at:
