WestJet today announced that it is launching a new dedicated cargo service, using 737-800 Boeing Converted Freights (BCF), as dedicated aircraft, to fulfill the larger-scale needs of Canadian businesses, freight forwarders, shippers and individual customers. The first of these dedicated 737-800BCFs are expected to be in service by the second quarter of 2022.
Throughout 2022, WestJet Cargo will grow its fleet of 737-800BCFs, to work in tandem with the current offering of WestJet’s existing Cargo business. The 737-800 narrow body aircraft is quick to load and fly, enabling WestJet Cargo to offer greater fuel efficiency, flexibility and frequency for its customers. WestJet Cargo routes and scheduled services will accommodate the diverse needs of cargo customers using WestJet’s existing network and highly skilled 737 pilots.
WestJet Cargo’s ability to ship on dedicated freighters or in the cargo hold on commercial routes provides cargo customers with increased reliability, flexibility and capacity to transport their diverse shipments to their chosen destination.
São José dos Campos – Brazil, April 27, 2021 – Embraer (NYSE: ERJ) delivered a total of 22 jets in the first quarter of 2021, of which nine were commercial aircraft and 13 were executive jets (10 light and three large). As of March 31st, the firm order backlog totaled USD 14.2 billion.
During 1Q21, KLM Cityhopper, the regional subsidiary of KLM Royal Dutch Airlines, received its first E195-E2 jet. This first E2 delivery to KLM, and lessor ICBC Aviation Leasing, elevated the total number of Embraer jets in the KLM Cityhopper fleet to 50 aircraft.
In the same period, Air Peace, Nigeria and West Africa’s largest airline, took delivery of its first E195-E2 aircraft. Air Peace is the launch customer in Africa for the E2. The airline is also the global launch customer for Embraer’s innovative premium staggered seating design.
Also, during the first quarter, Embraer delivered the first conversion of a Legacy 450 to a Praetor 500 jet for AirSprint Private Aviation. The Canadian fractional ownership company has another Legacy 450 scheduled to convert to a Praetor 500 this year, in addition to the delivery of a brand-new Praetor 500, also expected in 2021. With these additions, AirSprint will have three Praetor 500s in its fleet, and a total of nine Embraer aircraft.
Southwest Airlines Company (NYSE: LUV) today announced an intention to bring the flexibility and value of Southwest Airlines® to three more new airports in 2021. Southwest Airlines Chairman and CEO Gary Kelly today is sharing the following message with the Employees of Southwest:
I’m pleased to share with you all that today we’re announcing our intention to serve three more destinations and continue our focus on putting our aircraft to work to pursue more Customers and much-needed revenue.
And the destinations are (drum roll!) Myrtle Beach, South Carolina; Eugene, Oregon; and Bellingham, Washington—three very different and appealing locations to both serve our existing Customers and places where we feel Southwest can make a real difference for local travelers.
We’re looking to start Myrtle Beach service in time for summer vacations and we expect our arrival to appeal to travelers who currently drive to this very popular coastal area in the Southeast. ‘Golf bags fly free’* should be very popular for Myrtle Beach service!
Eugene is about two hours south of Portland, and it’s ripe for the Southwest Effect, our Hospitality, and our flexible policies, with no hidden fees, and low fares.
Southwest service in Bellingham positions us just south of metro Vancouver, British Columbia. Following the reopening of the Canadian border, we expect a return of the value-minded travelers who already drive to this alternative airport to escape high fares and taxes—and that’s very, very typical for Southwest destinations. Southwest provides a great value for them.
Service to both Eugene and Bellingham is something we’ve anticipated in the second half of the year.
That makes 17 new airports that either we have opened or announced since the pandemic began. And for those that have commenced service, they’re performing very well. In fact, we just shared with the airports serving Steamboat Springs and Telluride that we’re extending our service beyond the winter season to continue serving both through the summer of 2021.
Colorado Springs, Savannah, and our Long Beach service to Hawaii all start-up this coming Thursday.
That’s a lot of work, a lot of new destinations, and a lot of options for our Customers and so I want to thank all of the Teams that have a hand in continuing to grow the Heart of Southwest while better positioning us to capture more Customers as the travel demand rebounds.
*Golf bags fly free as one of two checked pieces of baggage offered to every Southwest Customer (weight and size limitations apply)
CALGARY, Dec. 22, 2020 /PRNewswire/ – Canadian Pacific Railroad (NYSE: CP) announced today it has completed its previously announced agreement to purchase an 83.5 percent stake in the Detroit River Rail Tunnel from certain affiliates of OMERS, the defined benefit pension plan for municipal employees in the province of Ontario. CP previously owned a 16.5 percent stake of the tunnel in partnership with OMERS. The purchase price for the transaction is approximately US$312 million, subject to customary closing adjustments.
Air Canada said today that it will gradually suspend the majority of its international and U.S. transborder flights by March 31, 2020 in response to decisions by national governments, including Canada and the United States, to close borders and restrict commercial aviation as a result of the COVID-19 crisis. Subject to further government restrictions, the airline intends to continue to serve a small number of international and U.S. trans-border destinations from select Canadian cities after April 1, 2020. The airline also intends to continue serving all provinces and territories of Canada after that date, albeit with a significantly reduced network.
In order to facilitate the continued repatriation of citizens to their home countries, including Canadians back to Canada, and to support the essential movement of needed goods and cargo during the crisis, Air Canada intends to continue to operate a limited number of international “air bridges” between one or more of its Canadian hubs and the cities of London, Paris, Frankfurt, Delhi, Tokyo and Hong Kong from April 1 until at least April 30. This will reduce its international network from 101 airports to six.
As to U.S. transborder services, given the decision by the U.S. and Canadian governments today, from April 1, Air Canada will reduce its transborder network from 53 airports to 13, subject to further reductions based on demand or government edicts. The cities with continued service will be: New York (LGA and EWR), Boston, Washington, D.C. (IAD and DCA), Chicago, Houston, Seattle, San Francisco, Los Angeles, Denver, Orlando and Fort Lauderdale.
Domestic Canada network
Air Canada intends to continue to serve all provinces and territories of Canada, reducing its domestic network from 62 airports to 40 through a reduced network during the period April 1 to 30, subject to further reductions based on demand or government edict.
For information on Air Canada’s schedule beginning April 1, 2020 please see www.aircanada.com.
“The restrictions on travel imposed by governments worldwide, while understandable, are nonetheless having a cataclysmic effect upon the global airline industry. Our immediate focus is on ensuring the safety and well-being of our employees, customers and communities. At the same time, we are exploring with the Government of Canada possibilities to maintain essential operations to enable as many Canadians as possible to return to Canada, and to support other vital transport needs, including the shipment of goods and cargo during the crisis as required in any state of emergency. We are working around the clock to deal with the impact for our customers and our business of the various travel restrictions that are being made by governments at unprecedented speed without advance warning. We will also look at helping Canadians to return home by operating a limited number of charters from international destinations and exploring with the Government of Canada avenues in this regard. We will provide updates as details are finalized,” said Calin Rovinescu, President and Chief Executive of Air Canada.
For Affected Customers
The airline will gradually suspend some of its scheduled flights between now and March 31 as demand for Canadians to return to Canada from a number of destinations reduces. Please check Air Canada’s website for details given the rapidly evolving situation.
Affected customers, including those with Air Canada Vacations packages, whose flights are cancelled will receive a full credit valid for 24 months. There is no requirement to contact Air Canada as customers will be contacted directly.
The airline has also put in place temporary, one-way fares to Canada to enable customers abroad to return home. Customers seeking to contact Air Canada are advised that contact centre wait times are elevated, so the airline has put in place a number of self-service tools to enable customers to manage their travel online. For more information please consult our COVID-19 webpage at www.aircanada.com.
MONTREAL, Feb 28 (Reuters) – Canadian National Railway Co has started calling back many of the 450 workers it laid off earlier this month in eastern Canada, when blockades crippled operations on strategic rail lines, according to a company email sent to customers on Friday.
Earlier this week, police made 10 arrests and cleared a blockade in eastern Canada that had been stopping freight and passenger traffic for almost three weeks on one of Canada’s busiest lines.
The blockades were held in solidarity with the Wet’suwet’en people in the Pacific province of British Columbia, who are seeking to stop TC Energy Corp from building a gas pipeline over their land.
“In the absence of illegal blockades on our network over the last 24 hours, and while we are keeping a close watch for any further disruptions, we have started calling back many of the temporarily laid off employees based in Eastern Canada,” CN chief executive Jean-Jacques Ruest said in the email seen by Reuters.
The email did not specify how many of the 450 workers were being called back.
After 21 days of disruptions, “there is a significant backlog of trains parked on our tracks and in our yards that will be processed,” the email said.
“The complete network recovery process will take several weeks.”
Montreal-based CN said the company was on its way to recovering in Western Canada, and said products like export grain, imported containerized goods, coal, potash and other commodities are moving to market.
Canada relies on CN and rival Canadian Pacific Railway to move crops, oil, potash, coal and manufactured goods to ports and the United States. About half of Canada’s exports move by rail, according to industry data.
(Reporting By Allison Lampert; editing by Grant McCool)
SINGAPORE (Reuters) – Competition is cranking up in the world of turboprops.
For years turboprops were an ignored corner of the aircraft industry, accounting for about 120 aircraft a year compared with the more than 1,000 jets made by giants Airbus and Boeing.
But growing rivalries in the turboprop business cut through a Singapore Airshow depleted by coronavirus this week.
While intercontinental jet travel is vulnerable to trade wars and disruptions such as epidemics, regional development in archipelago nations like Indonesia is favouring the turboprop.
The market has been dominated for years by Europe’s ATR, jointly owned by Airbus and Italy’s Leonardo, which enjoys a relatively undisturbed lion’s share of the market with a small slice also held by the Canadian-owned De Havilland Dash 8.
But the commercial arm of Brazil’s Embraer is sharpening a pitch to return to the market and Chief Executive John Slattery told Reuters he expected a decision by the end of the year.
“We should be positioned in the mid-to-late fourth quarter to bring a business case with a recommendation to our board,” he said in an interview.
In a sign that the development is accelerating, Slattery said he had held talks with three potential engine suppliers – Rolls-Royce, General Electric and Pratt & Whitney Canada, part of the engine unit of United Technologies.
“We are fully engaged with engine manufacturers now and meeting here at the air show…We are excited by where we are.”
Until now, planemakers have found it difficult to justify the estimated $2-4 billion investment needed to develop a new turboprop, despite its efficiency on relatively short flights.
The market has been stagnant at about 120 deliveries a year and demand for the planes is dependent on volatile oil prices, with turboprops displacing small jets when prices are high.
The thrumming noise of the propellor-driven turboprop also puts some passengers off, travel experts say, even though many in the industry say that reputation is already out of date.
Slattery said quiet new engine technology and advances in passenger comfort would stimulate demand.
“We believe the market opportunity going forward is significantly different to what past decades have shown.”
COMPETITION BOOST
China has already entered the fray with its planned MA700.
At ATR’s bright-red stand inside Singapore’s exhibition hall, Chief Executive Stefano Bortoli shrugged off the threat of a comeback by Embraer which already makes smaller turboprops.
“I think once Embraer will let us know their decision you will have our comments. At this point in time it is simply commenting on opinions. Not that we will stand still,” he said.
The fundamental shape of the two-aircraft ATR family seating 40-78 people has not changed in about 30 years, but the aircraft was modernised with the -600 variant around a decade ago.
ATR recently launched a freighter and a version designed for use on short runways, which has opened opportunities in markets such as Japan and Papua New Guinea, where PNG Air emerged as a launch customer this week.
“The approach we’ve taken…is let’s consolidate the platform that we have…and when the right time comes and there are solid options available, let’s go for that,” Bortoli said.
ATR shareholders have clashed in the past about whether to launch a bigger new 90-seater, with Toulouse-based Airbus blocking the investment. But industry analysts say ATR would have to consider responding to a new plane from Embraer.
The prospect of greater competition in turboprop adds zest to efforts by Embraer to complete a tie up with Boeing, which has agreed to acquire control of its commercial division.
The European Commission has extended its scrutiny of the $4 billion deal, fearing that it would narrow options for airlines.
Slattery reiterated Embraer would only have the appetite to invest in a new turboprop in the context of the Boeing venture.
He declined to elaborate but industry experts say it is a signal to Europe that the Boeing deal would improve choice for airlines by prompting ATR to come up with its own new product.
One European source said it remained doubtful whether Boeing would support a new turboprop once it gained control of Embraer, but analysts note the U.S. planemaker has not yet ruled it out.
(Reporting by Tim Hepher, Jamie Freed; editing by David Evans)
FILE PHOTO: Groundcrew prepare a Liat airlines ATR 42 plane on the tarmac at Barbados’ Grantley Adams International Airport
MONTREAL/PARIS (Reuters) – Europe’s Airbus SE <EADSY> is likely to acquire Canadian plane and train maker Bombardier Inc’s <BBD-B.TO> remaining stake in the A220 passenger jet program, two industry sources said.
A deal for Airbus to buy the 33.58% share in the program was widely expected after Bombardier said in January it was reviewing the stake in the joint venture. Barring surprises, a deal is expected next week ahead of both companies’ earnings reports on Feb. 13, the sources added.
Airbus and Bombardier both declined to comment. The terms of a potential deal that would mark Bombardier’s exit from commercial aviation were unclear.
Bombardier, which is weighing additional asset sales, faced a cash crunch in 2015 due to its high-stakes bet on the technologically advanced narrowbody.
Bombardier shares closed up 2.8%.
Montreal-based Bombardier ceded control of the program to Airbus in 2018 for a token C$1 as part of broader efforts to improve its finances. It retained a minority stake alongside the Canadian province of Quebec.
Bombardier had warned the program would require additional cash to ramp up production, and could be subject to a writedown, as it faces higher-than-expected costs in its rail division and more than $9 billion of debt.
Since Airbus took over the program, the A220 has seen a sharp pickup in sales to 658 orders as of Jan. 31. But it has not seen the cost declines expected from Airbus applying its greater purchasing power with suppliers, one of the sources said.
A deal would leave Airbus to shoulder additional investments required by the plane program.
“Airbus did not particularly want to do this at this time, but is presented with little choice if Bombardier is pulling back,” the second source said.
Airbus, with a 50.6% stake in the program, delivered 48 A220 jets in 2019 and is ramping up production toward its maximum monthly capacity of 10 jets in Mirabel, Quebec, and four planes at a second line in Alabama by mid-decade.
Airbus Chief Commercial Officer Christian Scherer told Reuters in January the company was progressing toward its target of a double-digit percentage reduction in the A220’s production costs.
Quebec, with a 16.36% stake in the A220 program, would not invest further. Rather, it is trying to protect the program’s estimated 2,700 jobs, along with the province’s $1 billion investment in the program, Economy Minister Pierre Fitzgibbon said on Monday.
“We put $1 billion in it and that’s enough.”
(Reporting by Allison Lampert and Tim Hepher in Paris; Editing by Diane Craft, David Gregorio and Richard Chang)
LONDON/FRANKFURT, Feb 5 (Reuters) – China’s HNA Group is resuming efforts to find a buyer for airport luggage handler Swissport despite facing a loss of several hundred million dollars on its initial $2.8 billion investment, four sources familiar with the matter told Reuters.
The Chinese conglomerate has rekindled talks with several heavyweight investment funds as it needs to raise cash to cut its debts, the sources said.
Rothschild is helping HNA identify prospective bidders, who are hoping to buy the Zurich-based business on the cheap after previous attempts to sell it stalled last year, the sources said, speaking on condition of anonymity because the process is not public.
U.S. buyout funds Apollo Global Management Inc and Cerberus as well as Canadian asset manager Brookfield have come forward to revisit a possible acquisition of Swissport, the sources said.
Two other U.S. investors – Bain Capital and Centerbridge Partners – are also looking to take part in a new auction, two of the sources said, adding interest from industry buyers had waned.
HNA is hoping to limit its losses and recoup at least $2.3 billion from the sale, one of the sources said.
But offers are expected to value Swissport at about $2 billion, two of the sources said, with one adding Apollo had previously offered $2.1 billion.
This means HNA may need to swallow a loss of more than $500 million to offload the business, which has annual core earnings of about $270 million, they said.
HNA, Apollo, Cerberus, Brookfield and Bain declined to comment, while Centerbridge was not available.
HNA bought Swissport for 2.7 billion Swiss francs ($2.8 billion) in 2016 in a deal that was meant to complement its sprawling portfolio of investments in aviation, logistics and tourism.
But the Chinese giant had to look into cashing out at the start of 2018 when its liquidity challenges turned it into one of China’s most indebted companies and forced it to quickly sell assets.
The 20-year old company, led by chairman Chen Feng, came under pressure after embarking on an aggressive M&A spree in the United States and Europe with deals worth an overall $50 billion.
It made a push into the travel and tourism industry, buying a 25% stake in Hilton Worldwide Holdings Inc in 2016 and then branched out into financial services, becoming the leading investor in Deutsche Bank.
But its M&A binge resulted in cash flow problems, prompting a review of all its business interests overseas.
HNA initially considered a possible listing of Swissport on the Swiss SIX Exchange in 2018, but then opted for an outright sale.
Apollo and Cerberus, which bought Paris-based Worldwide Flight Services (WFS) in 2018, were both initial contenders for Swissport, but negotiations stalled after the Swiss company secured a refinancing package in August.
($1 = 0.9727 Swiss francs)
(Reporting By Pamela Barbaglia and Clara Denina in London and Arno Schuetze in Frankfurt; Editing by Mark Potter)
Genesee & Wyoming Inc. (G&W) today announced the completion of its previously announced sale to affiliates of Brookfield Infrastructure and GIC.
Under the terms of the sale, each issued and outstanding share of G&W common stock converted into the right to receive $112 in cash. As a result of the completion of the sale, G&W’s common stock ceased trading on the NYSE prior to market open today and will no longer be listed for trading on the NYSE.
“This transaction is an excellent outcome for all G&W stakeholders,” said Jack Hellmann, Chief Executive Officer of G&W. “For our customers, employees, and Class I partners, the long-term investment horizon of Brookfield and GIC is perfectly aligned with the long lives of G&W railroad assets. We look forward to building on G&W’s track record of safety, service excellence and commercial growth as we become an important component of a portfolio of global infrastructure assets.”
About Genesee & Wyoming
G&W owns or leases 119 freight railroads organized in locally managed operating regions with 8,000 employees serving 3,000 customers.
G&W’s six North American regions serve 42 U.S. states and four Canadian provinces and include 113 short line and regional freight railroads with more than 13,000 track-miles.
G&W’s Australia Region serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
G&W’s UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.
G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair. For more information, please visit www.gwrr.com.
About Brookfield Infrastructure
Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and data infrastructure sectors across North and South America, Asia Pacific and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Brookfield Infrastructure Partners is listed on the New York and Toronto stock exchanges. Further information is available at www.brookfieldinfrastructure.com.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with over $500 billion of assets under management. For more information, go to www.brookfield.com.
About GIC
GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves. As a disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. In infrastructure, GIC’s primary strategy is to invest directly in operating assets with a high degree of cash flow visibility and which provide a hedge against inflation. GIC has investments in over 40 countries. Headquartered in Singapore, GIC employs over 1,500 people across 10 offices in key financial cities worldwide. For more information on GIC, please visit www.gic.com.sg.
