Tag: boost (Page 2 of 2)

Tesla Cuts Prices up to 6% in North America to Boost Demand

May 27, 2020 / WIL BALDWIN

A Tesla logo on a Model S is photographed inside of a Tesla dealership in New York

Tesla Inc <TSLA> has cut prices of its electric vehicles by as much as 6% in North America following a decline in auto demand in the region during weeks of lockdown that have now started to ease.

Tesla also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X sport utility vehicles (SUV’s).

Auto retail sales in the United States likely halved in April from a year earlier, showed data from J.D. Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.

Automakers including General Motors Co <GM>, Ford Motor Co <F> and Fiat Chrysler Automobiles NV <FCAU>, are offering 0% financing rates and deferred payment options for new purchases.

Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.

Tesla was briefly forced to stop work at its Fremont, California, factory due to stay-at-home orders. It resumed production after resolving a dispute over safety measures with local authorities.

On Wednesday, Tesla website’s showed the starting price for its Model S sedan is now $74,990, down from $79,990.

Its Model X SUVs are now priced at $79,990, from $84,990, and the lowest-priced Model 3 sedan is $2,000 cheaper at $37,990.

Tesla said it will also cut prices in China – as per usual after price adjustments in the United States – by around 4% for the Model X and Model S.

Tesla China, which is delivering Model 3 sedans from its Shanghai factory, in a Weibo post said it has also cut prices for the Model S and Model X cars it imports, but will keep prices of locally made Model 3 cars unchanged.

(Reporting by Yilei Sun and Brenda Goh; Editing by Tom Hogue and Christopher Cushing)

FAA Agrees Must Boost Safety Oversight for Southwest Airlines

February 11, 2020 / WIL BALDWIN

FILE PHOTO: A traveler checks her baggage at the Southwest Airlines terminal at LAX airport in Los Angeles

(Reuters) – The U.S. Federal Aviation Administration says it should have done a better job of ensuring Southwest Airlines Co <LUV> had certified completion of maintenance on 88 used Boeing 737 jets, as noted in a report by the U.S. Transportation Department’s Inspector General released on Tuesday.

Budget-friendly Southwest bought the planes in question between 2013 and 2017 from 16 foreign carriers.

The final report, first seen by Reuters, said Southwest operated more than 150,000 flights carrying 17.2 million passengers on the jets without confirmation that required maintenance had been completed.

The report said the FAA has not “effectively overseen Southwest Airlines’ systems for managing risks” and made 11 recommendations to improve oversight, including retraining inspectors and developing better control over maintenance records and inspector guidance on evaluating air carrier safety culture.

While the U.S. commercial airline industry is considered safe, with only one fatality in recent years, the FAA is under heightened scrutiny by lawmakers over its relationship with the industry after two crashes overseas on the newer Boeing Co <BA> 737 MAX killed 346 people and led to that aircraft’s global grounding.

“Given the significant unresolved safety concerns that FAA has identified at Southwest Airlines, it is clear that the agency is not yet effectively navigating the balance between industry collaboration and managing safety risks at the carrier,” the report said.

The FAA said in a response included with the report it concurred with all 11 recommendations and the inspector general’s conclusion that its office overseeing Southwest did not perform in accordance with existing guidance by allowing the 88 planes to enter service and that it “lacked a comprehensive conformity inspection for used aircraft.”

Southwest told Reuters on Tuesday that eight of the 88 jets remain out of service until needed repairs are completed and that it disagreed with the report’s findings.

The report chided the FAA, saying the agency “accepted the air carrier’s justification that the issues identified were low safety risks.”

The FAA noted it changed the leadership of its office that oversees Southwest and “continues to address deficiencies in the work functions and culture.” The agency has agreed to ensure Southwest “complies with regulatory requirements that the 88 previously owned aircraft conform to U.S. aviation standards.”

Last month, the Wall Street Journal published an article on a draft of the inspector general report.

The report also said the FAA violated its own guidance in addressing noncompliance by Southwest on baggage weight and balance data. The FAA agreed to ensure Southwest complies with requirements.

On Jan. 10, the FAA said it was seeking to impose a $3.92 million fine on Southwest for alleged weight infractions on 21,505 flights on 44 aircraft between May 1, 2018 and Aug. 9, 2018.

Southwest has said it is working with the FAA to demonstrate the effectiveness of its controls and seek a resolution on the proposed penalty.

Southwest shares closed up 0.9% on Tuesday, off intraday highs.

(Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago; Editing by David Gregorio and Matthew Lewis)

FILE PHOTO: A Southwest Airlines Boeing 737 plane sits on the runway waiting to take off at LAX airport in Los Angeles

€755 Million Deal to Refurbish and Maintain Avanti West Coast Pendolinos

January 10, 2020 / WIL BALDWIN

Deal will see the creation of 100 jobs
Programme is the UK’s biggest ever train upgrade
Seven-year contract will see fleet maintained by the train’s manufacturer, Alstom

Britain’s most iconic train fleet is to undergo a major refurbishment that will create scores of high-skilled engineering jobs and secure hundreds more roles throughout the UK.

In a boost to the manufacturing sector, all 56 electric Pendolino trains deployed on the West Coast Mainline will be overhauled in a seven-year deal worth approximately €755 million (£642 million) signed between the route’s new operator, Avanti West Coast, and Alstom which built the fleet.[1]

As well as covering a €150 million (£127 million) upgrade programme of the Pendolinos, which is believed to be the biggest train upgrade programme ever undertaken in the UK, the deal will see Alstom maintain them until 2026 alongside a new train fleet recently ordered from Hitachi.

The first of the revolutionary tilting Pendolino trains entered service on the London to Glasgow route in January 2003. The overhaul will focus on onboard facilities, with passengers benefitting from more comfortable seating, improvements to the shop, revamped toilets, better lighting, new interiors, and the installation of at-seat chargers and improved Wi-Fi throughout. Performance will also be improved through new maintenance programmes.

The deal will create 100 high-skilled roles, mostly based at Alstom’s Transport and Technology Centre in Widnes, with hundreds more existing engineering jobs secured at key depots in Glasgow, Liverpool, Manchester, Oxley and Wembley.

Liverpool City Region Metro Mayor, Steve Rotheram, said: “In the Liverpool City Region, we’re trying to create a fair and inclusive economy where local people benefit from investment. The Combined Authority have provided £3.4m in funding to help Alstom open their ground breaking facility in Halton. I’m really pleased that – because of this brand new facility – local people will benefit through jobs and apprenticeships for years to come through projects like this.”

Managing Director of Avanti West Coast, Phil Whittingham, said: “The Pendolino is an iconic passenger train and we’re delighted to be giving it a new lease of life. This deal will improve the experience of passengers and ensure the fleet can continue to serve communities up and down the west coast route in the years ahead.”

Nick Crossfield, Managing Director, Alstom UK & Ireland added: “Alstom are proud to have been trusted by First Trenitalia to maintain the Avanti West Coast fleet and upgrade the Pendolino trains. Over the last 15 years these trains have revolutionised travel for passengers, with faster and more frequent services.

“Passengers can now look forward to a new chapter in this story with Avanti West Coast, and with this contract in place, Alstom can look forward to investing even more in high quality jobs and apprenticeships as we deliver these improvements.”

Alan Lowe, CFO of Angel Trains which leases the fleet to Avanti West Coast, said: “The refurbishment of the Avanti West Coast fleet will dramatically improve passenger experience and create highly-skilled jobs in local communities, so we’re delighted to be supporting First Trenitalia and Alstom as this exciting project commences. Angel Trains is committed to investing in the modernisation of UK Rail and this transformative project will ensure that Pendolino trains reflect the evolving needs of today’s passengers and continue to be an iconic part of our railways.”

[1] Booked in the third quarter (Q3) of the 2019/2020 fiscal year.

Russia’s St Petersburg Airport Expects to Host Ryanair, Others in 2020

December 26, 2019 / WIL BALDWIN

MOSCOW (Reuters) – Low-cost airline Ryanair and other budget carriers are expected to start flying from Russia’s St Petersburg airport in 2020, the Russian Transport Ministry said.

The move is part of Russia’s plan to boost tourist flows to St Petersburg and will mean more competition for Russian air carriers, including national flag carrier Aeroflot.

The ministry said on Tuesday that Ryanair, EasyJet, WizzAir, Volotea, Air Baltic and Fly One had expressed interest in flights from St Petersburg’s Pulkovo airport, Russia’s fourth largest after Moscow’s three major hubs.

It said the companies had applied for flights from Pulkovo, coded LED by the International Air Transport Association, to 22 countries, including Britain, Germany and France.

Russia will introduce a so-called “Open Skies” regime for the companies for five years, the ministry said, allowing airlines to fly to St Petersburg without requiring the traditional bilateral inter-governmental agreements.

The move follows the introduction of a special electronic visa system for tourists visiting St Petersburg which nationals from 53 countries can take advantage of.

(Reporting by Gleb Stolyarov; Writing by Andrey Ostroukh,; Editing by Andrew Osborn and Ed Osmond)

FAA Must Boost Oversight to Address Allegiant Air Maintenance Issues

December 17, 2019 / WIL BALDWIN

An Allegiant Air MD-83 passenger jet takes off from the Monterey airport

WASHINGTON (Reuters) – The U.S. Federal Aviation Administration (FAA) needs to improve its oversight to address maintenance issues at Allegiant Air, the 11th largest U.S. carrier, according to a report seen by Reuters on Tuesday.

The U.S. Transportation Department’s Inspector General, in a 31-page report sent to Capitol Hill on Tuesday but not yet made public, said FAA inspectors since 2011 have not “consistently documented risks associated with 36 Allegiant Air in-flight engine shutdowns for its MD-80 fleet or correctly assessed the root cause of maintenance issues.”

Ultra-low cost Allegiant, a unit of Allegiant Travel Co, said it had not yet see the report and did not have an immediate comment.

The FAA said in a letter attached to the report that it agreed with eight of the nine recommendations made by the inspector general and partially agreed with the remaining one.

Allegiant carried about 14 million passengers last year, serving 122 U.S. cities and Puerto Rico on 450 flight routes.

The inspector general opened the probe in May 2018 after a “series of in-flight engine shutdowns, aborted takeoffs, and unscheduled landings” raised concerns about maintenance practices.

The report said in-flight shutdowns at Allegiant “continued until July 2018 and were only resolved four months later when Allegiant Air retired the last of its MD-80 fleet.” Allegiant now flies an all Airbus fleet.

The report found in-flight engine shutdowns forced 21 Allegiant aircraft to return or divert to other airports between 2014 and 2018, but that regulators did not properly track engine shutdown risks.

A 2015 maintenance provider failure at Allegiant Air demonstrated “severe violations that represent unacceptable safety risks or could result in catastrophic outcomes should also warrant a more stringent oversight approach,” the report said.

The inspector general said the airline’s maintenance provider failed to insert a cotter pin on a critical flight control component that put some 30,000 passengers at risk.

The report said in August 2015, a pilot “almost lost control of this aircraft during takeoff when it unexpectedly tried to lift off prematurely” but was able to abort takeoff and land safely.

After inspectors proposed a 30-day suspension for Allegiant Air’s maintenance provider, FAA regional officials reduced the suspension to a compliance action. FAA inspectors closed out six of eight compliance actions before ensuring Allegiant Air actually took any corrective actions, the report found.

It also found that FAA does not provide inspectors with guidance and comprehensive training to ensure Allegiant Air takes appropriate corrective actions.

The FAA said it had “initiated compliance actions at Allegiant Air that have improved safety for the flying public.”

(Reporting by David Shepardson; Editing by Richard Chang and Bill Berkrot)

Airline passengers walk next to an Allegiant Air commercial flight near an air traffic control tower operated by Serco nc. at the Ogden-Hinckley Airport in Ogden

EgyptAir Adds More Boeing 787s to Fleet as Dreamliners Deliver 23% Fuel Boost

November 18, 2019 / WIL BALDWIN

Egyptian flag carrier to lease two more 787-9 jets from leading lessor AerCap
Airline joins other operators in growing their Dreamliner fleet after achieving eye-opening fuel efficiency improvement

EGYPTAIR is growing its Boeing 787 Dreamliner fleet with an agreement to lease two more airplanes from AerCap, the airline announced today at the Dubai Airshow. The Egyptian flag carrier unveiled it had selected the super-efficient airplane to modernize its fleet during the last Dubai Airshow in 2017.

The carrier began operating the 787-9 this year, deploying the Dreamliner on new direct flights from its hub in Cairo to Washington, D.C., and other cities. EGYPTAIR says the 787s have delivered on the Dreamliner’s promise of unmatched efficiency, providing a 23-percent reduction in fuel consumption compared to the airplanes they replaced.

“The Boeing 787 Dreamliner has outperformed our expectations, helping us significantly reduce our fuel use and emissions, while bringing comfort to our passengers,” said Ahmed Adel, chairman and CEO of EGYPTAIR Holding Company. “We look forward to growing our network with additional 787-9 airplanes and flying more passengers to their destinations at an affordable cost.”

To maintain its fleet of 787’s, the carrier also announced agreements with Boeing this week that would provide EGYPTAIR with global access to critical aircraft components, including a Landing Gear Exchange and Quick Engine Change kit solutions.

EGYPTAIR joins other 787 operators in expanding its commitment to the Dreamliner program after experiencing the airplane in revenue service. More than half of all 787 customers have placed repeat orders for the airplane, helping the Dreamliner become the fastest-selling widebody airplane in history. The biggest 787 customer is Dublin-based AerCap with 117 airplanes owned and on order. AerCap will lease a total of eight 787’s to EGYPTAIR.

Speaking at the Dubai Airshow, AerCap CEO Aengus Kelly said, “AerCap is very proud to continue to support EGYPTAIR’s widebody fleet renewal program and sustainable growth ambitions. We thank our friends and partners at EGYPTAIR for their continued confidence in AerCap and we look forward to working with the EGYPTAIR and Boeing teams as these aircraft deliver.”

“EGYPTAIR has shown a strong commitment to growing its business in a sustainable and profitable manner and we are thrilled that the 787 Dreamliner is helping the airline realize their vision. There is no better endorsement of the 787’s efficiency, range and passenger comfort than an operator returning for more aircraft,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing, The Boeing Company. “Of course, this would not be possible without AerCap and its market-leading portfolio that gives carriers great flexibility in operating an optimized fleet.”

At 63 meters (206 feet) long, the 787-9 can fly 296 passengers, in a typical two-class configuration, up to 7,530 nautical miles (13,950 kilometers). The airplane is 6 meters longer than the original Dreamliner and is capable of carrying 48 more passengers with increased range. The 787 Dreamliner family has won more than 1450 orders from over 80 customers on six continents.

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)

Jaguar Land Rover to Build Electric Cars at UK Plant

July 16, 2019 / WIL BALDWIN

LONDON (Reuters) – Jaguar Land Rover (TAMO.NS) is making a multi-million pound investment to build electric vehicles in Britain, in a major boost for the UK government and a sector hit by the slump in diesel sales and Brexit uncertainty.

Britain’s biggest car company, which built 30 percent of the UK’s 1.5 million cars last year, will make a range of electrified vehicles at its Castle Bromwich plant in central England, beginning with its luxury sedan, the XJ.

“The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK,” Chief Executive Ralf Speth said on Friday.

The announcement gives a boost to Britain’s automotive sector hit this year by Honda and Ford’s (F.N) plans to close factories.

Jaguar Land Rover (JLR) has highlighted the dangers of a no-deal Brexit and the need to maintain frictionless trade with the European Union, echoing warnings from the industry that just-in-time production could be hit by customs delays and additional bureaucracy.

But it has signed a deal with workers at the Castle Bromwich factory to go from a five-day to a four-day working week with the same amount of hours which should allow the plant to operate more efficiently.

Three of JLR’s four European car plants are in Britain, giving it limited capacity elsewhere on the continent.

The other, in Slovakia, only opened last year and is still being ramped up with other models allocated there.

“We are making this investment because the ongoing Brexit uncertainty has left us with no choice, we had to act, for our employees and our business,” JLR said.

“We are committed to the UK as our home and will fight to stay here but we need the right deal.”

Both candidates to replace Prime Minister Theresa May, Boris Johnson and Jeremy Hunt, have both said they are prepared to take Britain out of the EU on Oct. 31 without a deal, although it is not their preferred option.

Brexiteers have argued that the EU’s biggest economy Germany, which exports hundreds of thousands of cars to Britain ever year, would do its utmost to protect that trade

Friday’s announcement comes after a turbulent few months for Jaguar which announced around 4,500 job cuts earlier in January and posted a 3.66 billion pound ($4.5 billion) loss in 2018/19.

The carmaker is undergoing a turnaround designed to offer an electrified option to all of its new models from 2020 as it seeks to move away from its reliance on diesel vehicles which are being increasingly shunned by buyers.

Jaguar also called on the government to bring giga-scale battery production to the country so that Britain is not left behind in the rush to produce low and zero-emissions vehicles and technology.

Britain’s business minister Greg Clark said the government was doing all it can to meet that goal.

“We are determined to realize that ambition,” he said.

($1 = 0.7952 pounds)

Reporting by Costas Pitas; editing by Michael Holden and Jane Merriman

FILE PHOTO – A car hangs on the wall of Jaguar’s Castle Bromwich manufacturing facility in Birmingham, Britain, November 17, 2016. REUTERS/Darren Staples

GM to Boost Heavy-Duty Pickup Truck Production

June 12, 2019 / WIL BALDWIN

FLINT, Mich. (Reuters) – General Motors Co president Mark Reuss said on Wednesday that the automaker is investing about $150 million at its Flint Assembly plant in Michigan, to boost production of heavy duty trucks by another 40,000 vehicles a year.

Reuss announced the investment at the Flint truck assembly plant wearing a United Auto Workers pin.

The Detroit automaker announced in February it was adding 1,000 jobs in Flint to build a new generation of heavy-duty pickup trucks.

GM did not say that the latest investment would add more jobs at the plant, but Reuss said there could be opportunities to add workers as the launch of the automaker’s new trucks progresses.

FILE PHOTO: A Chevrolet 2020 heavy-duty pickup truck is seen at the General Motors Flint Assembly Plant in Flint

GM has been under pressure from U.S. President Donald Trump and lawmakers of both parties to add jobs in the United States after it said last November it would idle a small car assembly plant in Lordstown, Ohio, and had no new products for three other U.S. manufacturing plants.

The Flint investment will include upgrades to the plant’s conveyors and other new tooling, and will be completed in the first half of 2020. GM has invested more than $1.6 billion in the plant since 2013.

Last month, GM said it would invest $24 million to increase truck production at its assembly plant in Fort Wayne, Indiana, which makes Chevrolet Silverado and GMC Sierra models.

FILE PHOTO: The frames of Chevrolet 2019 heavy-duty pickup trucks sit on the assembly line in the paint department at General Motors Flint Assembly Plant

Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000.

GM’s Chevrolet and GMC brands have long trailed Ford Motor Co’s F-series heavy duty trucks in the lucrative segment. The new Chevrolet and GMC heavy duty trucks have been re-engineered to tow heavier trailers, and keep pace in what has become an arms race among the Detroit Three automakers to claim superior torque and towing capability.

(Reporting by Joe White in Detroit and Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila and Nick Zieminski)

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