Saab has today received a follow on contract with the United Arab Emirates regarding the sale of two GlobalEye systems, Saab’s advanced airborne surveillance system. The order value is USD 1.018 billion and the contract period is 2020-2025.
The original contract with the United Arab Emirates for GlobalEye was signed in 2015. This contract is an amendment to that signed in 2015.
“We are proud that the United Arab Emirates continues to show great trust in Saab and our solutions. It shows that Saab remains on the cutting edge regarding advanced technology. The GlobalEye program is running according to plan and we have an efficient cooperation with the customer”, says Micael Johansson, President and CEO Saab.
The work will be carried out in Gothenburg, Linköping, Arboga, Järfälla and Luleå in Sweden and in Centurion, South Africa.
The contract was signed by the customer on the 30th of December 2020, hence the order was booked during the fourth quarter 2020.
GlobalEye provides simultaneous air, maritime and ground surveillance. It combines sophisticated radar technology with the ultra-long range Global 6000 aircraft from Bombardier.
Mesa Air Group, Inc. (NASDAQ: MESA) today reported fourth quarter and full-year fiscal 2020 financial and operating results.
Mesa’s Q4 2020 results reflect net income of $11.4 million, or $0.32 per diluted share, compared to net income of $12.2 million, or $0.35 per diluted share for Q4 2019. Mesa Q4 2020 results include, per GAAP, the deferral of $7.8 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 for Q4 2020 was $44.6 million, compared to $50.8 million in Q4 2019, and Adjusted EBITDAR1 was $54.2 million for Q4 2020, compared to $61.9 million in Q4 2019. For Q4 2020 revenue was $108.0 million, a reduction of $79.8 million (42%) from $187.8 for Q4 2019 primarily due to the reduced flying as a result of COVID-19. During the quarter Mesa recognized $40.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees.
Operationally, the Company ran a 99.8% controllable completion factor, compared to 99.0% in Q4 2019, and a total completion factor of 98.2%, which primarily includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations, compared to 96.9% in Q4 2019.
Full Year
Mesa reported net income of $27.5 million, or $0.78 per diluted share for the 2020 fiscal year, compared to net income of $47.6 million, or $1.36 per diluted share for the 2019 fiscal year. Excluding special items for both periods, adjusted net income1 was $27.5 million or $0.78 per diluted share for the 2020 fiscal year, compared to $57.5 million or $1.64 per diluted share for the 2019 fiscal year. Mesa fiscal 2020 results include, per GAAP, the deferral of $23.8 million of revenue, all of which was billed and paid by American and United during the year and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 was $163.3 million in fiscal year 2020, compared to $208.7 million in fiscal year 2019 and Adjusted EBITDAR was $212.1 million in fiscal year 2020, compared to $260.9 million in fiscal year 2019. For fiscal year 2020, revenue was $545.1 million, a reduction of $178.3 million (25%) from $723.4 million for fiscal year 2019, primarily due to the reduced flying as a result of COVID-19. During the year, Mesa recognized $83.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees as of April 20, 2020.
_______________ 1 See Reconciliation of non-GAAP financial measures
Fiscal 2020 Q4 Highlights
– EPS of $0.32, Full Year $0.78
– Year-end cash increased by $34.5 million to $99.4 million
Recent Updates
– Amended capacity purchase agreement with American to operate 40 CRJ-900s for a five-year term
– Commenced cargo operations for DHL with two Boeing 737-400F
– Added 10 new E175 aircraft to our United fleet in November and December
– Entered into a $195 million loan under the CARES Act with the U.S. Treasury
Mesa Air Group, Inc. (NASDAQ: MESA) will release its fourth quarter earnings for fiscal year 2020 after the market closes on Wednesday, December 9. The company will also host a conference call to discuss the results on December 9 at 4:30 pm Eastern Time.
The call can be accessed by dialing 888-469-2054 and entering the passcode: PHOENIX (7463649).
DEARBORN, Mich. (Reuters) – Investors sent Ford Motor Co shares skidding on Tuesday after the company delivered a weaker-than-expected 2020 forecast, warning of higher warranty costs, lower profits at its credit arm and continued investments in future technology such as self-driving cars.
Shares in the No. 2 U.S. automaker plunged 9.4% in after-hours trading, shaving more than $3 billion off the company’s value. In comparison, electric carmaker Tesla closed up nearly 14%, pushing its market cap to $160 billion, more than four times the size of Ford’s $36.4 billion.
“The results were not OK in 2019,” Ford Chief Financial Officer Tim Stone told reporters at the company’s headquarters outside Detroit.
“As I look to 2020 and beyond, I’m very optimistic,” he said, while cautioning that Ford’s lower guidance does not yet account for the potential impact of the coronavirus outbreak in China.
In an after-hours call with financial analysts, Chief Executive Jim Hackett was more blunt about the challenge of balancing Ford’s protracted turnaround efforts with its continuing work on future technology, including electric and self-driving cars.
“I don’t think this company can keep straddling the old and new worlds forever … This company has to change,” Hackett said.
Ford said it expects 2020 operating earnings to be in the range of 94 cents to $1.20 a share. Analysts were expecting $1.26 a share.
Stone said Ford expects to continue its quarterly dividend of 15 cents, which could cost the company $2.4 billion in 2020. Asked about continuing the dividend after lowering its 2020 guidance, Hackett said, “We like to return value to shareholders.”
The disappointing 2020 forecast, coming after Ford previously trimmed its 2019 outlook, is a blow for Hackett, who took the helm in May 2017.
He has been asking investors to be patient with a restructuring that has seen the formation of a wide-ranging alliance on commercial, electric and autonomous vehicles with Volkswagen AG <VOWG_p.DE> and the sale of its money-losing operations in India to a venture controlled by India’s Mahindra & Mahindra.
But by Ford’s own accounting, the restructuring is far from complete. It has booked $3.7 billion of the projected $11 billion in charges it previously said it would take, and expects to book another $900 million to $1.4 billion this year.
For the fourth quarter of 2019, Ford reported a net loss of $1.7 billion, or 42 cents a share, compared with a loss of $100 million, or 3 cents a share, a year earlier.
The quarter included a loss of $2.2 billion due to higher contributions to its employee pension plans, something it disclosed last month.
Revenue in the quarter fell 5% to $39.7 billion, above the $36.5 billion Wall Street had expected.
Ford’s adjusted free cash flow fell 67% in the fourth quarter to $500 million, including the $600 million cost of bonuses related to a new labor deal with the United Auto Workers union. The UAW deal also played a role in driving North American automotive profit margins down to 2.8% in the fourth quarter.
Ford said its operating losses in China last year totaled $771 million, including a loss of $207 million in the fourth quarter. It lost $1.5 billion in 2018. Ford’s market share in China in the fourth quarter fell to 2% from 2.3% last year.
In December, Ford said it would halve its operating loss in 2019 and nearly halve it again in 2020, followed by further improvement in 2021.
However, that forecast was before the appearance of the fast-spreading coronavirus and its crippling effects on China’s economy.
Ford’s China sales fell about 15% in the fourth quarter and 26% for the year as it continued to lose ground in its second-biggest market. Ford has been struggling to revive sales in China since its business began slumping in late 2017.
Detroit rivals General Motors Co and Fiat Chrysler Automobiles are scheduled to report their results on Wednesday and Thursday, respectively.
(Reporting by Ben Klayman and Paul Lienert; Editing by Tom Brown)
São José dos Campos, Brazil, January 30, 2020 – Embraer and SkyWest, Inc. (NASDAQ: SKYW) signed a firm order for 20 E175 jets in a 76-seat configuration. The order has a value of USD 972 million, based on 2019 list prices, and is already included in Embraer’s 2019 fourth-quarter backlog. Deliveries are expected to begin in the second half of 2020.
“Embraer and SkyWest enjoy a partnership marked by a longstanding history of service to the mainline carriers, and we relish the opportunity to break new ground,” said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. “Today, we are excited to announce that these 20 new aircraft will be the first E-Jets operated by SkyWest within the American Airlines network.”
“We’re pleased to continue advancing our position in the industry with this latest order of new Embraer aircraft,” said Chip Childs, President and Chief Executive Officer of SkyWest, Inc. “We appreciate the long-standing partnership with Embraer and look forward to operating this outstanding aircraft for all four of our mainline partners.”
Embraer’s relationship with SkyWest dates back to 1986, when SkyWest began operating the EMB 120 Brasilia turboprop. With this additional order for the E175, SkyWest has purchased more than 180 aircraft of this model since 2013 alone.
Embraer is the world’s leading manufacturer of commercial jets with up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged almost 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft.
FORT WORTH, Texas — American Airlines Group Inc. (NASDAQ: AAL) today reported its fourth-quarter and full-year 2019 financial results, including these highlights:
Fourth-quarter 2019 earnings were $0.95 per diluted share. Excluding net special items1, earnings were $1.15 per diluted share, up 19% year over year.
Full-year 2019 earnings were $3.79 per diluted share. Excluding net special items2, earnings were $4.90 per diluted share, up 8% year over year.
Accrued $213 million for the company’s profit-sharing program in 2019, including $74 million in the fourth quarter.
Returned $1.3 billion to shareholders in the form of dividends and share repurchases in 2019.
“During the fourth quarter, we made important progress to address the issues that impacted our business in 2019, and, thanks to our incredible team, we ended the year with our strongest operational quarter on record,” said American Airlines Chairman and CEO Doug Parker.
“While our results for the quarter reflect this progress, we know there is more work to be done. Looking to 2020, we are focused on three key areas. First, we will continue to deliver operational excellence and build on our strong fourth-quarter results. Our team has done a tremendous job, and we will keep driving improvement in key operational metrics in the year ahead. Second, we will deliver those results while growing where we have a competitive advantage in our most profitable hubs. And third, these initiatives combined with our capital plan will enable us to drive significant free cash flow in 2020 and beyond.”
Fourth-Quarter Revenue and Expenses
Pre-tax earnings were $571 million in the fourth quarter of 2019. Pre-tax earnings excluding net special items for the fourth quarter of 2019 were $679 million, a $90 million increase from the fourth quarter of 2018, or 15.1% year-over-year increase from the same period last year.
Continued strength in passenger demand and a record passenger load factor drove a 3.4% year-over-year increase in fourth-quarter 2019 total revenue to a record $11.3 billion. Driven by a 2.4% increase in passenger load factor, passenger revenue per available seat mile (PRASM) grew 0.9% to 14.72 cents, a record for the fourth quarter. Cargo revenue was down 18.3% to $216 million due primarily to a 15.6% decline in cargo volume. Other revenue was up 5.4% to $750 million due primarily to higher loyalty revenue. Fourth-quarter total revenue per available seat mile (TRASM) increased by 0.5% compared to the fourth quarter of 2018 on a 2.9% increase in total available seat miles.
Total fourth-quarter 2019 operating expenses were $10.6 billion, up 2.1% year over year, driven primarily by higher salaries and benefits, maintenance, and regional expenses. Total fourth-quarter 2019 cost per available seat mile (CASM) was 15.06 cents, down 0.8% from fourth-quarter 2018. Excluding fuel and net special items, consolidated fourth-quarter CASM was 11.59 cents, up 2% year over year.1
2020 Priorities
In 2020, American is focused on operational excellence, efficient and profitable growth, and generating significant free cash flow.
Operational excellence: Running a reliable operation is a significant driver of customers’ likelihood to recommend and American’s goal to become customers’ airline of choice.
Efficient and profitable growth: Grow in high-revenue markets that produce at or above average unit revenues, largely due to new gates in Dallas-Fort Worth and Charlotte, North Carolina.
Generating significant free cash flow3: Use free cash flow to naturally de-lever the company’s balance sheet and return capital to American’s shareholders.
FILE PHOTO: The corporate logo of Ford is seen at Brussels Motor Show
(Reuters) – Ford Motor Co <F> said on Wednesday its fourth quarter results will be hit by a pre-tax loss of about $2.2 billion (1.7 billion pounds) due to higher contributions to its employees pension plans.
The charge is largely related to a drop in discount rates, the company said, as that leads to an increase in the amount of money to be contributed for future pension benefits.
The U.S. automaker said it will record a $2 billion loss related to pension plans outside the United States and a $600 million loss associated with other post-retirement employee benefits plans globally.
However, the overall loss was offset by a $400 million gain associated with pension plans in the United States.
On an after-tax basis, the loss is expected to reduce Ford’s net income by about $1.7 billion in the fourth quarter. The loss will not impact the adjusted earnings per share as it is a special item, the company said.
(Reporting by Dominic Roshan K. L. in Bengaluru; Editing by Arun Koyyur)
GTN 650Xi & GTN 750Xi modernize cockpit navigation and are available immediately
OLATHE, Kan.–(BUSINESS WIRE)– Garmin International, Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), today announced the GTN™ 650Xi and GTN 750Xi, the next generation of in-flight navigation technology. Designed as a direct slide-in upgrade to the previous generation GTN 650/750, pilots can preserve their panel and modernize the cockpit with the new GTN 650Xi and GTN 750Xi. The all-in-one GPS/NAV/COMM boasts a feature-rich multifunction display and can integrate with new or existing remote-mount equipment such as a transponder or audio panel. Dual-core processors and modern hardware also prepare the GTN Xi series for advanced capabilities in the future. The GTN 650Xi and GTN 750Xi have received Federal Aviation Administration (FAA) approval and are available immediately for fixed-wing single-engine and multi-engine piston, turbine and experimental aircraft, with helicopter and business aircraft approvals soon to follow.
GTN 750Xi and GTN 650Xi in the panel of a Bonanza (Photo: Business Wire)
“After decades of innovation and pioneering the GPS/NAV/COMM, we’re excited to bring the fourth generation GTN 650Xi and GTN 750Xi to the market,” said Carl Wolf, vice president of aviation sales and marketing. “Garmin was the first to introduce the all-in-one navigator with the iconic GNS 430/530. Over time the GNS WAAS and the industry-first GTN 650/750 touchscreen navigators were added to the line-up along with state-of-the-art features such as voice control, wireless connectivity and more. As the leader in GPS cockpit navigation, we have brought the most widely adopted navigators to the industry and with the GTN 650Xi and GTN 750Xi, we’re excited to add one more to the family.”
Modern processing power and state-of-the-art hardware within the GTN 650Xi/750Xi supports faster map rendering and smoother panning throughout the touchscreen navigator. It boasts a large, ultra-high-resolution display and wide viewing angle that offers superior readability in the cockpit. The displays initialize within seconds of start-up, providing immediate access to frequencies and flight plan information, saving valuable time in the aircraft. Preserving the same form factor as the previous generation GTN 650/750, the 6-inch-tall GTN 750Xi and the 2.65-inch-tall GTN 650Xi offer an intuitive touchscreen design with a dedicated direct-to button and dual concentric knob that provide added convenience when interfacing with the display.
Retaining all the features of the GTN 650/750, the GTN Xi series adds a vibrant display and vivid colors that enhance the contemporary look of the new navigators. When installed alongside a G500 TXi or G600 TXi flight display, the GTN Xi series brings a new level of modernization to the cockpit. Highly complementary, the GTN Xi and the TXi flight displays share similarities in display, appearance and hardware qualities. For example, both products feature an angular bezel so the pilot has a near-seamless experience when transitioning between the touchscreen flight display and the navigator.
The GTN 650Xi/750Xi offer advanced navigation functions, including ILS and LPV instrument approach procedures, as well as visual approach guidance. Based on a published glide path angle or a three-degree glideslope from the threshold of the runway, visual approaches also take into account terrain and obstacle clearance to assist pilots in flying a stabilized approach to the runway in visual flight conditions. Approach types that incorporate radius-to-fix (RF) leg types are also supported by the GTN Xi series. Additional capabilities include the option to add a published or custom holding procedure, vertical navigation (VNAV), graphical flight plan editing on the moving map and more.
The colorful, multifunction display-like map allows pilots to better visualize their dynamic position relative to potential hazards, such as terrain, weather and traffic. Geo-referenced instrument approach procedures can be overlaid on the map page, offering superior situational awareness when transitioning from the enroute to approach phase of flight. Terrain alerting is included within the GTN Xi series and further enhances situational awareness by using its internal terrain and obstacle database to provide audible and visual terrain proximity alerts, including, “terrain ahead, pull up” and “obstacle ahead, pull up.” Helicopter Terrain Awareness and Warning System (HTAWS), TAWS-A and TAWS-B are available as options.
Superior integration with an array of avionics on the market make the GTN 650Xi/750Xi a simple and straightforward solution to incorporate into any cockpit. Options for remote audio panel or transponder display and control allow aircraft owners to simplify their panel. When paired with a Garmin autopilot, such as the GFC™ 500 or GFC 600, pilots can fly fully coupled VNAV profiles and instrument approach procedures. Pilot workload-reducing features such as Telligence™ voice control are also available within the GTN Xi when paired with the optional GMA™ 35c. When paired with a GSR 56 Iridium datalink, global text and voice calling can be completed through the touchscreen display on the navigator.
Wireless connectivity is available with the optional Flight Stream 510, allowing pilots to connect their mobile devices running the Garmin Pilot™ and FltPlan Go applications to the GTN 650Xi/750Xi. When connected to the navigator, pilots can save time in the cockpit by wirelessly transferring aviation databases and flight plans from their mobile device to the navigator. Flight Stream 510 also supports the sharing of traffic, weather, GPS position information and more. The GTN Xi series is also compatible with the cost-effective Garmin navigation database.
The GTN 650Xi and GTN 750Xi have received FAA Supplemental Type Certification (STC) and are available immediately through Garmin Authorized Dealers for a suggested retail price of $12,495 and $17,995 respectively. A free GTN Xi trainer app is also available for download on Apple mobile devices, which allows customers to experience the feature set of these navigators. A new GTN Essentials 2.0 eLearning Course provides instruction on best practices for operational use of the new GTN Xi series and can be accessed via this website: https://buy.garmin.com/en-US/US/p/712644. The GTN Xi series come with a two-year warranty and are supported by Garmin’s award-winning aviation support team, which provides 24/7 worldwide technical and warranty support. Garmin was awarded top honors last year in avionics product support for the 16th straight year by Aviation International News,and earned the top spot in the annual avionics product support survey conducted by Professional Pilot magazinethis year, also for the 16th consecutive year.
(Reuters) – United Airlines Holdings Inc <UAL> said on Tuesday it expects a non-cash impairment charge of $90 million in the fourth quarter related to its Hong Kong routes, following anti-government protests in the city.
The Hong Kong protests escalated in June over a now-withdrawn extradition bill, but have since developed into a broader movement.
“Due to a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue, the company determined that the value of its Hong Kong routes had been fully impaired,” the U.S. carrier said.
Several airlines including India’s SpiceJet Ltd <SPJT>, Malaysia’s AirAsia Group Bhd <AIABF>, South Korea’s JejuAir Co Ltd <089590> reduced the number of flights to the city in the fourth quarter as the protests grew increasingly violent, disrupting daily life.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)
(Reuters) – American Airlines Group Inc <AAL> said on Monday it had reached a confidential agreement with Boeing Co <BA> to address damages the airline incurred in 2019 due to the ongoing grounding of its fleet of Boeing 737 MAX aircraft.
American, the largest U.S. airline, said the compensation will be received over several years. The airline will use more than $30 million of the compensation for the airline’s 2019 employee profit-sharing program.
American said it does not expect any material financial impact of the agreement to be realized in its fourth-quarter 2019 earnings and it will continue talks regarding compensation for damages related to the MAX grounding beyond 2019.
The Association of Professional Flight Attendants, which represents American Airlines’ 28,000 flight attendants, said it welcomed the news about compensation, and was evaluating the details.
Boeing said it does not comment on discussions with airlines.
Boeing’s best-selling 737 MAX has been grounded since two fatal crashes in five months killed 346 people. The company is halting production this month. A number of airlines have struck confidential settlements with Boeing in recent weeks.
(Reporting by David Shepardson, Editing by Rosalba O’Brien)
An American Airlines Boeing 737 Max 8, on a flight from Miami to New York City, comes in for landing at LaGuardia Airport in New York
