WASHINGTON (Reuters) – The U.S. government’s decision to raise tariffs on European-built aircraft will hit U.S. airlines already facing a shortage of aircraft and complicate efforts to reach a negotiated settlement with the European Union, Airbus <AIR.PA> said.
The European planemaker said it would continue discussions with its U.S. customers to “mitigate effects of tariffs insofar as possible” and hoped the U.S. Trade Representative’s office would change its position.
“USTR’s decision ignores the many submissions made by U.S. airlines, highlighting the fact that they – and the U.S. flying public – ultimately have to pay these tariffs,” the company said in a statement.
(Reporting by Andrea Shalal; Editing by Daniel Wallis)
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)
Airline partners with G’Day USA for Red Cross relief efforts
FORT WORTH, Texas — American Airlines donated $100,000 to help Australia recover from devastating bush fires that have burned more than 27 million acres to date. The donation, which was made through the Australian diplomacy program G’Day USA, will benefit the Australia chapter of the Red Cross.
“We are all affected by the heartbreaking images of the wildfires in Australia,” said American Airlines President Robert Isom. “American is proud to do what we can to assist in the recovery.”
This year, G’Day USA brought awareness and raised funds to assist with the Australian bush fires. The event is typically a celebratory dinner that honors the special relationship between Australia and the United States.
American also activated the airline’s disaster response fundraising platform, where customers and team members can assist those in need. From now through Jan. 31, AAdvantage® members can earn 10 miles for every dollar donated to the Red Cross with a minimum $25 donation.
“One of the best things Americans can do to support our friends in Australia is keep their travel plans and make new ones,” Isom said. “The Australian economy relies on its tourism business and nearly all the popular sites in Australia are unaffected by the fires.”
You can make your donation to the Australian bush fire recovery efforts by visiting the Red Cross website.
*** BE SURE TO SELECT – “AUSTRALIA BRUSHFIRES” BELOW THE – “I WANT TO SUPPORT” QUERY TO ENSURE YOUR DONATION REACHES TO CORRECT RECIPIENT!!! ***
PARIS (Reuters) – Air France <AFLYY> said on Sunday it planned to run its entire flight schedule on Jan. 6 and Jan. 7, despite calls by some crew unions to strike as part of ongoing nationwide protests over the government’s efforts to reform the pension system.
“On January 6 and 7, 2020, Air France plans to operate its entire flight schedule,” the airline said in a statement, which also cited discussions between the government and unions that it said had resulted in guarantees for flight crews’ future pension system.
(Reporting by Sudip Kar-Gupta; Editing by Gareth Jones)
An Air France Airbus A319 plane takes off from the Nantes-Atlantique airport in Bouguenais near Nantes
The logo of IndiGo Airlines is pictured on passenger aircraft on the tarmac in Colomiers near Toulouse
NEW DELHI (Reuters) – India’s air safety watchdog said IndiGo must do more to fix its aircraft fitted with Pratt & Whitney engines, linked to in-flight shutdowns, as it fears the budget airline may not meet its Jan. 31 deadline to replace them.
Deliveries of new planes taken by IndiGo must be used to replace the aircraft that are fitted with the problem Pratt engines, the Directorate General of Civil Aviation (DGCA) said on Monday. Those planes should then be grounded until their engines are replaced with new ones, after which they can fly again.
Indigo is the biggest customer of Airbus A320neo jets.
The regulator’s move effectively prevents India’s top airline from expanding its network until it has replaced all the Pratt & Whitney engines.
United Technologies’ Pratt & Whitney engines have consistently caused issues since they entered into service in 2016, forcing IndiGo to ground its planes several times.
In a recent review meeting with the airline, the DGCA felt that the steps taken by IndiGo so far to replace all the engines “do not instil enough confidence with regard to the timely completion of the said task”.
“If left unaddressed, we may find ourselves in a situation, in which, we remain saddled with large number of aircraft with unmodified engines … and we are left with the only option i.e. to ground them,” the regulator said in the statement.
On Nov. 1 the regulator had ordered the airline to replace all P&W engines on its fleet of almost 100 twin-engined Airbus A320neo family aircraft with new power units by Jan. 31, 2020.
If the replacement is not complete, all planes that still have unmodified engines will be grounded and could cause “large scale disruptions” in operations. The latest directive is aimed at preventing such a situation, the DGCA said.
IndiGo, owned by InterGlobe Aviation, said the current schedule remains intact, and it is working with P&W and Airbus to meet the DGCA guidelines.
(Reporting by Aditi Shah, editing by Louise Heavens)
RENTON, Wash., Nov. 22, 2019 – Boeing [BA] marked a key milestone as thousands of employees gathered for the debut of the first 737 MAX 10 at the company’s Renton, Washington factory. During a ceremony, Boeing leaders highlighted the team’s accomplishments and recognized their efforts in completing production of the newest member of the 737 MAX family.
“Today is not just about a new airplane. It’s about the people who design, build and support it,” said Mark Jenks, vice president and general manager of the 737 program. “This team’s relentless focus on safety and quality shows the commitment we have to our airline customers and every person who flies on a Boeing airplane.”
The 737 MAX 10, the largest variant of the MAX family, can seat up to 230 passengers and offers the lowest seat-mile cost of any single-aisle airplane ever produced. The airplane will now undergo system checks and engine runs prior to first flight next year.
“I’m honored to take this airplane on its first flight and show the world what you’ve put your heart and soul into,” 737 Chief Pilot Jennifer Henderson told the employee crowd.
The 737 MAX 10 currently has more than 550 orders and commitments from more than 20 customers around the globe.
SEPANG, 13 November 2019 – AirAsia has unveiled a special ‘Save our Malayan Tiger’ aircraft livery in support of the government’s campaign to save the fast-disappearing Malayan tiger.
The ‘Save Our Malayan Tiger’ livery forms part of AirAsia’s ongoing sustainability efforts to support conservation and environmental programs, and would encourage millions of people to pledge their support for the cause.
The Airbus A320 aircraft livery was unveiled by the Minister of Water, Land and Natural Resources Yang Berhormat Dato’ Dr Xavier Jayakumar alongside AirAsia Group CEO Tony Fernandes, AirAsia Group President (Airlines) Bo Lingam and AirAsia Malaysia CEO Riad Asmat here in Sepang today.
AirAsia Group Head of Global Affairs & Sustainability, Shasha Ridzam said, “Malayan tigers are a majestic symbol of strength and part of our national identity. We would never want our children to grow up in a world where the Malayan tiger exists only as an image on the coat of arms. That is why we must play our part in protecting them. I hope this new livery helps to bring the government’s wildlife conservation campaign to life.”
AirAsia Group CEO Tony Fernandes also added, saying, “Congratulations to the Ministry of Water, Land and Natural Resources for taking proactive measures in protecting our Malayan tigers, and we’re proud to be able to do our part in helping this campaign.”
Minister of Water, Land and Natural Resources YB Dato’ Dr Xavier Jayakumar said, “We are proud to take the Save Our Malayan Tiger and Hutan Kita campaigns to new heights with AirAsia. The alarming decline of our national symbol is clear evidence that we need to do more when it comes to conserving our tigers. Our Hutan Kita campaign is an important cause as well, as without our forests, there will be no tigers and wildlife. We hope with AirAsia’s support, we will further raise the awareness on these important messages not just in Malaysia but in the region as well and be the vehicle of change for our tigers.”
AirAsia has also extended its support to the Ministry of Water, Land and Natural Resources’ environmental campaigns by sponsoring return flights for 10 orang asli to attend the Hutan Kita Exhibition Launch in August 2019, in addition to supporting a visit to the National Wildlife Rescue Center (NWRC) in Sungkai, Perak for its Allstars in October 2019.
AirAsia’s sustainability efforts include guest education, carbon reduction and waste management, the collection and separation of recyclable items on board and community-based tourism programmes such as JourneyD. AirAsia also fosters social enterprise initiatives across Asean through its philanthropy arm, AirAsia Foundation.
Low-fare carrier, Frontier Airlines, today, introduces the newest aircraft tail to its fleet, Wellington the Black-Footed Ferret. The addition of the Airbus A320neo aircraft, Wellington, grows Frontier’s fleet to 95 Airbus aircraft. The tail’s namesake calls attention to the town in Larimer County, Colorado and the local recovery efforts for one of the most endangered species in North America.
“We’re excited to welcome Wellington the Black-Footed Ferret to our fleet,” Barry Biffle, President and CEO of Frontier Airlines said. “The animals on the tails of our aircraft are part of Frontier’s DNA and Wellington is a special addition to the fleet because of its connection to Colorado and its endangerment. As America’s Greenest Airline, we feel a great responsibility to support the efforts of the National Black-Footed Ferret Conservation Center and we look forward to continuing our partnership with them.”
“It’s incredible to see how far we’ve come together on our journey to bring this species back from the brink of extinction,” said Noreen Walsh, Regional Director for the U.S. Fish and Wildlife Service. “This success is due in large part to the strength of our partnerships with states, local communities, tribes, ranching families, and now, Frontier Airlines.”
“On behalf of the town of Wellington I would like to say thank you to Frontier Airlines for choosing Wellington the Black-Footed Ferret as the animal on the tail of its newest aircraft”, Mayor of Wellington, Troy Hamman said. “It’s an honor for me as the town mayor of Wellington to help represent our black-footed ferret and an awesome airline such as Frontier.”
Black-footed ferrets are the only ferret native to North America. The U.S. Fish and Wildlife Service’s National Black-Footed Ferret Conservation Center, along with many partners, coordinates efforts to recover the species and monitor overall population health.
Frontier Airlines has partnered with the conservation center to support their efforts and call attention to endangered species. To learn more about the center and about black-footed ferrets, visit www.blackfootedferret.org.
Frontier operates 95 A320 family aircraft and has the largest A320neo fleet in the U.S., delivering the highest level of noise reduction and fuel-efficiency, compared to previous models. The use of these aircraft, Frontier’s seating configuration, weight-saving tactics and baggage process have all contributed to the airline’s average of 39% fuel savings compared to other U.S. airlines (fuel savings is based on Frontier Airlines 2018 fuel consumption per seat-mile compared to the weighted average of major U.S. airlines).
With over 150 new Airbus planes on order, Frontier will continue to grow to deliver on the mission of providing affordable travel across America. Frontier’s young fleet also ensures that the company keeps fares low and that customers will enjoy a pleasant and reliable experience flying with the airline.
