Amtrak submitted a letter to Congress outlining an additional $1.475 billion in supplemental funding needed in FY 2021. This additional funding is necessary for Amtrak to operate minimum service levels across the passenger rail network and continue capital investments for the future. The funds would also support Amtrak’s 17 state partners on the National Network and nine commuter and state partners on the Northeast Corridor.
“As the severity and duration of this pandemic and its economic fallout become clearer, we are seeking supplemental federal funding for the next fiscal year,” said Amtrak President and CEO Bill Flynn in the letter.
To help offset the impact of revenue losses, Amtrak is taking significant steps to reduce its operating costs by approximately $500 million, including temporarily reducing train capacity across our system to match demand, restructuring our workforce, and controlling discretionary expenses. Yet even with these steps, Amtrak still requires additional federal investment in FY 2021.
“It is clear that Amtrak faces daunting challenges in Fiscal Year 2021, which will require us to take action to protect our rail network, our critical capital assets, and the livelihoods of our employees,” said Flynn in the letter.
With strong ridership and revenue levels in the first quarter of FY 2020, Amtrak was on track for another record-breaking year. However, Amtrak, like all other modes, has seen a dramatic decline in demand for service since the pandemic, and is expecting ridership to only return to approximately 50% in FY 2021. The $1.475 billion is in addition to Amtrak’s $2.040 billion annual grant request submitted to Congress earlier this year, and without this support, Amtrak will be unable to minimize the impacts to service and its workforce as described in the letter.
The Government’s $1.2 billion rail investment in Budget 2020 will help KiwiRail attract more customers and get more freight on rail, KiwiRail Group Chief Executive Greg Miller says.
Building on the Government’s $1 billion investment in Budget 2019, this second round of funding includes $400 million towards replacing the aging Interislander ferries and $421 million to continue the replacement programme for some of KiwiRail’s oldest locomotives.
The funding also includes $246 million, plus a $148 million top up of the National Land Transport Fund, towards ensuring New Zealand’s rail network, which includes more than 3000km of track, more than 1000 bridges and nearly 100 tunnels, is reliable and resilient.
“I welcome this substantial funding, which is another major boost for rail in New Zealand. For our customers this investment sends a clear signal that rail has a big future and gives them the confidence to get on board,” Mr Miller says.
“Our customers want to make greater use of rail and we’re seeing more road operators reach out for our support as their networks contract. We’re here to help them.”
“The Government’s investment allows us to continue with our locomotive replacement programme and raise the standard of our rail lines, bridges and tunnels across the country. This will enable KiwiRail to offer better and more reliable train services for our customers, and move more of New Zealand’s growing freight task onto rail.
“This funding recognises that rail has a greater role to play in New Zealand’s transport sector, and that it can make a valuable contribution towards lowering our transport emissions, reducing road congestion and saving in road maintenance costs – which benefits our nation as a whole.
Fifteen new Gen 2.3 DL locomotives depart KiwiRail’s Mt Maunganui yard, shortly after arriving at the Port of Tauranga, in 2018.
“The range of track renewal and facility upgrades we are planning will also support our workforce of almost 4000, as well as numerous civil contractors and material supply businesses across the country.”
“I’m very grateful to the Government for this level of support and I know that KiwiRail’s customers will be pleased by this demonstration of our shareholder’s commitment to rail.”
Mr Miller says the $400 million contribution to replacing Interislander’s three aging ferries and necessary landside infrastructure highlights how important the ferry connection is to New Zealand.
“Our Cook Strait ferries are an extension of State Highway 1, moving 800,000 passengers and up to $14 billion worth of road and rail freight between the North and South Islands each year.
“They are a must have for NZ Inc. The two new rail-enabled ferries will be more advanced, have significantly lower emissions and last for the next 30 years.
“This is a once-in-a generation investment and I am thankful for the Government’s support. It gives us the security to go out to international tender to build the ships, which we hope to see arriving on our shores in 2024 and 2025.”
The Qantas Group has completed a new round of debt funding, securing $1.05 billion in additional liquidity to strengthen its position as it manages through the Coronavirus outbreak.
This debt has been secured against part of the Group’s fleet of unencumbered aircraft, which were bought with cash in recent years. The loan has a tenure of up to 10 years at an interest rate of 2.75 per cent.
This funding increases the Group’s available cash balance to $2.95 billion with an additional $1 billion undrawn facility remaining available.
The Group’s net debt position remains at the low end of its target range, at $5.1 billion, with no major debt maturities until June 2021. In line with the rest of the Qantas debt book, the new funding contains no financial covenants.
With a further $3.5 billion in unencumbered assets, the Qantas Group retains flexibility to increase its cash balance as a prudent measure in the current climate. As previously announced, various steps have been taken to significantly reduce activity levels and costs given the dramatic revenue impact of the Coronavirus pandemic and the related travel restrictions on Jetstar and Qantas passenger services.
Qantas Group CEO Alan Joyce said: “Over the past few years we’ve significantly strengthened our balance sheet and we’re now able to draw on that strength under what are exceptional circumstances. Everything we’re doing at the moment is focused on guaranteeing the long term future of the national carrier, including making sure our people have jobs to return to when we have work for them again.”
Seven of the Group’s 11 wholly-owned Boeing 787-9’s have been securitised against this funding.
Jacobson, who was named the airline industry’s best CFO eight times, will remain at Delta while a successor is named and throughout the transition.
Paul Jacobson, Delta’s Chief Financial Officer, is retiring after a remarkable career at Delta that spanned more than two decades.
Jacobson will remain at Delta while a successor is named and throughout the transition. He joined the company in 1997 and was named CFO in 2012.
“Paul played a crucial role in Delta’s bankruptcy process and the strategy that led Delta to regain our investment-grade balance sheet while also investing billions in our people, product and service,” Delta CEO Ed Bastian wrote in a memo to employees Friday. “Paul has a gift for sharing financial messages that are clear, actionable and easily comprehended, ensuring that Delta people understand our financial standing, goals and path forward.”
Jacobson was named the airline industry’s best CFO eight times by Institutional Investor magazine’s poll of Wall Street analysts and investors. In his memo, Bastian also highlighted Jacobson’s service to the community, including his mission to raise awareness and funding for the American Heart Association after a member of his team experienced a heart attack at work.
Jacobson also helped establish the Delta Air Lines Aviation Education Building at his alma mater, Auburn University, providing resources for the next generation to learn to fly and pursue careers in aviation.
“When he leaves Delta later this year, his legacy will be our strong financial foundation and a best-in-class Finance team,” Bastian wrote.
WASHINGTON, Feb 10 (Reuters) – The White House budget released on Monday proposed cutting funding for passenger rail carrier Amtrak, while calling for a significant boost in infrastructure spending.
The proposal would cut Amtrak funds by more than 50% over 2020 levels. It could cut funds to the congested northeast corridor from $700 million to $325 million and cut long-distance train funds from $1.3 billion to $611 million and then phase out support for long-distance trains.
Trump has proposed similar cuts in prior budgets and been rejected, and Democrats are not likely to go along. Trump has sparred with Democratic lawmakers over a $13 billion infrastructure project to build and repair tunnels and bridges in the New York City area known as “Gateway.”
In November, Amtrak said for the year ended Sept. 30, it had set records for ridership, revenue, and financial performance, including 32.5 million customer trips, a year-over-year increase of 800,000 passengers.
Amtrak reported a loss of $29.8 million in the year through September 2019 compared with a loss of $170.6 million in the prior fiscal year.
The Trump budget calls for $810 billion in highway, transit, safety and other surface transportation funds and then an additional $190 billion for a wide range of programs including $25 billion for rural water, broadband and other projects. It does not specify how to pay for the repairs or for funding an estimated $107 billion shortfall in the highway trust fund through 2026.
The budget again also calls for eliminating an Energy Department clean vehicle loan program that boosted Tesla Inc , Nissan Motor Co and Ford Motor Co during the last industry downturn, but has not funded a new project in almost a decade.
Start-up Lordstown Motors Chief Executive Steve Burns told Reuters last month the company wanted to apply for a $200 million loan from the Energy Department program to retool a former General Motors factory in Lordstown, Ohio. Burns met with Energy Secretary Dan Brouillette for an hour to discuss the proposal last month. Lordstown is partially owned by start-up Workhorse Group Inc.
The budget also again proposes killing the $7,500 electric vehicle tax credit that phases out for automakers after 200,000 EVs are sold. The White House blocked an effort in December by congressional Democrats to expand the credit to additional vehicles.
(Reporting by David Shepardson; Editing by Steve Orlofsky)
Acela at B&P Tunnel
Acela, Amtrak, B&P Tunnel, Baltimore, NEC, maryland
An Acela train emerges from the B&P Tunnel in Baltimore.
FORT WORTH, Texas — American Airlines will provide a once-in-a-lifetime opportunity to add a loved one’s name to one of its planes in honor of those who are cancer survivors, current cancer fighters and those who lost their battle with cancer. Anyone who makes a donation of $25 or more to Stand Up To Cancer (SU2C) during the month of July can add the name of a person they stand up for to an American Airlines Airbus A321. The plane, which will begin flying this fall, will be wrapped with a special SU2C design that includes names submitted.
The campaign launches July 1 with a digital and television ad featuring Stand Up To Cancer Ambassador and superstar Tim McGraw alongside six American team members from across the U.S. Tim as well as each team member in this new campaign has been personally affected by cancer, either as a survivor or a co-survivor caring for a loved one fighting the disease.
“Every family in America has a cancer story, my own family included. Too many of us have lost our parents, children, spouses and friends to this terrible disease,” McGraw said. “I’ve been so touched by the stories of the American Airlines team members I’ve met over the past month and I’m honored to lend my voice to this campaign to help create a world where all cancer patients can become long-term survivors and have more time with the people they love.”
As part of the company’s multi-year, multi-million dollar collaboration with SU2C, 100% of donations received will go to support Stand Up To Cancer’s collaborative cancer research programs.
“Our national collaboration with Stand Up To Cancer was driven by their proven approach to cancer research and our corporate purpose to care for people on life’s journeys. In a few short years, we’ve seen donations contribute to scientific breakthroughs and more access to meaningful clinical trials,” said Elise Eberwein, Executive Vice President of People and Communications at American. “Today, we ask anyone who has been impacted by cancer join us in our shared goal to make every cancer patient a long-term survivor.”
American team members in Los Angeles and Nashville participated in the campaign, which includes pilots, flight attendants, mechanics, Customer Service agents and Fleet Service team members.
To honor its own team members, the first names added to the plane will be those of American team members who self-identified as cancer survivors or are currently battling cancer.
“We are so honored to team up with American Airlines in this empowering campaign, which offers anyone who’s been affected by cancer the chance to join our mission, publicly honor a loved one and stand up to cancer,” said Rusty Robertson, a co-founder of Stand Up To Cancer. “American Airlines continues to be a tremendous supporter of SU2C, and the critical dollars raised by this incredible campaign expands our mission to accelerate the pace of cutting-edge research and innovative cancer treatments to save lives now.”
To make a donation to SU2C and add a name to this special plane, visit aa.com/standup between July 1–31, 2019. Donors can visit aa.com/standup again in late September to see the location of their submitted names on the plane before it begins flying in September. Terms and conditions apply.
About Stand Up To Cancer
Stand Up To Cancer (SU2C) raises funds to accelerate the pace of research to get new therapies to patients quickly and save lives now. SU2C, a division of the Entertainment Industry Foundation (EIF), a 501(c)(3) charitable organization, was established in 2008 by film and media leaders who utilize the industry’s resources to engage the public in supporting a new, collaborative model of cancer research, and to increase awareness about cancer prevention as well as progress being made in the fight against the disease. Under the direction of our Scientific Advisory Committee, led by Nobel Laureate Phillip A. Sharp, Ph.D., SU2C operates rigorous, competitive review processes to identify the best research proposals to recommend for funding, oversee grants administration, and ensure collaboration across research programs.
Current members of the SU2C Council of Founders and Advisors (CFA) include Katie Couric, Sherry Lansing, Lisa Paulsen, Rusty Robertson, Sue Schwartz, Pamela Oas Williams, Ellen Ziffren, and Kathleen Lobb. The late Laura Ziskin and the late Noreen Fraser are also co-founders. Sung Poblete, PhD, RN, has served as SU2C’s president and CEO since 2011.
For more information on Stand Up To Cancer, please visit StandUpToCancer.org.
About Tim McGraw
His unparalleled career includes 43 number one radio singles, 16 number one albums and countless industry awards and accolades. His unique chart achievements include having three singles in the Top 20 of the radio charts on multiple occasions, as well as having two singles spend over 10 weeks at number one. His last solo project spawned one of the biggest hit singles of all-time, “Humble and Kind,” whose message continues to impact fans around the world including a Spanish version sung by McGraw. He has routinely been cited as one of the biggest touring artists in the history of country music.
MUMBAI/NEW DELHI, April 17 (Reuters) – India’s embattled Jet Airways Ltd is set to temporarily halt operations from Wednesday onward after its lenders rejected the airline’s plea for emergency funds, three sources from inside the company said on Wednesday.
The airline, saddled with roughly $1.2 billion of bank debt, has been teetering for weeks after failing to receive a stop-gap loan of about $217 million from its lenders, as part of a rescue deal agreed in late March.
Separately, two sources at state-run banks told Reuters on Wednesday that the lenders had rejected the 4 billion rupees ($58 million) that Jet had sought to keep itself temporarily afloat, while its lenders attempted to identify an investor willing to acquire a majority stake in the airline and attempt to turn it around.
“Bankers did not want to go for a piecemeal approach which would keep the carrier flying for a few days and then again risk having Jet come back for more interim funding,” said one of the bank sources directly involved in Jet’s debt resolution process.
All five sources declined to be named as they have not been authorized to discuss the matter with media.
Jet and its lead lender State Bank of India (SBI) did not immediately respond to requests for comment.
($1 = 69.4120 Indian rupees)
(Reporting by Tanvi Mehta and Promit Mukherjee in Mumbai and Aftab Ahmed and Aditi Shah in New Delhi; Writing by Euan Rocha; Editing by Susan Fenton)
FRANKFURT, April 9 (Reuters) – A German court on Tuesday approved an application for insolvency from wind turbine manufacturer Senvion, although the company said it was also continuing to look at new funding options and various potential investors had shown interest.
The Hamburg-based company, which has more than a billion euros of debt, said it had applied for preliminary self-administration proceedings because refinancing discussions with lenders had not yet been successful.
Shares in Senvion were down 40.5 percent at 1519 GMT, having fallen as much as 55 percent earlier in the day.
Senvion has faced delays and penalties related to big projects, while the wind industry as a whole has seen falling prices and increased competition as it moves away from governments guaranteeing generous fixed subsidised tariffs for power towards an auction-based system that favours the lowest bidders.
Market leaders Siemens Gamesa and Vestas have more pricing power, putting smaller suppliers under pressure.
Financial sources had told Reuters Senvion needed at least 100 million euros ($112 million) in the short term to keep operating.
“Lenders and major bond holders are currently continuing intensive discussions around a financing offer to secure the continuation of operations which may allow the company to successfully exit this process,” Senvion said in a statement.
Two financial sources said hedge funds Anchorage and Davidson Kempner were prepared to put up the 100 million euros in loans that CEO Yves Rannou – who took the helm in January – needs to continue restructuring and clear the backlog of orders that has recently cost the company revenues and profit.
The sources said majority shareholder Centerbridge was prepared to accept that but the banks – notably Deutsche Bank and BayernLB – would still need to agree. The banks have lent Senvion a total of 950 million euros.
BayernLB and Deutsche Bank declined to comment.
Senvion also has 400 million euros in bonds bought by hedge funds including Anchorage and Davidson Kempner.
Senvion said its management board would remain in office under the initiated procedure and business operations would carry on, with both existing service and maintenance contracts continuing.
The company said the preliminary self-administration proceedings affected Senvion GmbH and a subsidiary called Senvion Deutschland GmbH. It said Senvion S.A., Senvion Topco GmbH and Senvion Holding GmbH were expected to file for insolvency later this week.
Senvion’s website says it has around 4,000 employees globally.
(By Alexander Hübner and Michelle Martin, Additional reporting by Hans Seidenstuecker; Editing by Tom Sims and Mark Potter)
