Tag: Office (Page 2 of 4)

Former Garuda Indonesia CEO Jailed for Eight Years for Bribery

May 8, 2020 / WIL BALDWIN

AKARTA (Reuters) – An Indonesian court on Friday jailed Emirsyah Satar, a former chief executive of Garuda Indonesia, for bribery and money laundering related to procurement of planes and engines from Airbus and Rolls-Royce, his laywer said.

Satar’s lawyer Luhut Pangaribuan said his client had been given an eight-year sentence and fined S$2 million ($1.4 million) by the country’s corruption court.

Indonesia’s Corruption Eradication Commission (KPK) had indicted Satar, CEO of Garuda from 2005 to 2014, over payments from a businessman via a third party for the procurement by Garuda Indonesia of Roll-Royce Trent 700 engines and Airbus A320 and A330 planes.

The indictment also related to the procurement of Airbus planes for PT Citilink Indonesia, a unit of Garuda.

In 2017 Rolls-Royce agreed to pay authorities more than $800 million to settle charges after an investigation by the U.S. Justice Department and Britain’s Serious Fraud Office into alleged bribery of officials in six countries in schemes that lasted more than a decade.

Airbus in February this year agreed to pay a record $4 billion in fines after reaching a plea bargain with prosecutors in Britain, France and United States over alleged bribery and corruption stretching back at least 15 years.

Satar, who had previously denied wrongdoing, will decide next week whether to appeal against his sentence, said Pangaribuan.

($1 = 1.4139 Singapore dollars)

(Reporting by Agustinus Beo Da Costa; Writing by Ed Davies; Editing by David Goodman)

Airbus Sees Airlines Seeking to Defer or Cancel Orders

March 24, 2020 / WIL BALDWIN

PARIS (Reuters) – Airbus <EADSY> said in a stock market filing on Monday that customers could seek to cancel or postpone delivery of airliners and helicopters as the coronavirus crisis continues to escalate.

It issued the warning in an annual reference document ahead of its upcoming Amsterdam shareholder meeting, for which it urged participants to vote by proxy rather than attend in person due to widespread measures to slow the spread of the disease.

Airbus Chief Executive Guillaume Faury said earlier that several airlines had asked to defer deliveries, but that most were continuing to pay their deposits.

“Weaker market and economic conditions in China and their knock-on effects in other markets could result in requests by customers to postpone delivery or cancel existing orders for aircraft (including helicopters),” the filing said, though Faury said earlier there were some signs of recovery in China.

Airbus also detailed steps to improve compliance practices after paying a 3.6-billion-euro fine last month to settle a four-year multinational bribery probe.

But it warned that possible further investigations in other jurisdictions could trigger claims against it by shareholders, impact its ability to raise finance or limit its eligibility for public contracts, as well as harm future commercial sales.

Malaysian authorities last week cleared AirAsia Group <5099.KL> after Britain’s Serious Fraud Office faulted a sponsorship deal between former Airbus parent EADS and a motor racing team owned by the airline’s co-founders.

But the SFO probe, supported by Airbus’s own lawyers, caused a severe rift between AirAsia and its sole supplier, adding to doubts over whether long-haul unit AirAsiaX will take delivery of A330neo jets on order, three people close to the matter said.

AirAsia officials could not be reached for comment. Airbus declined comment.

Loss-making AirAsiaX has said only that it wants to defer delivery of A330neo jets due to the coronavirus crisis.

Deliveries of the wide-body aircraft have also been hit by the impact of U.S. tariffs on Airbus aircraft under a long-running trade dispute, as well as concerns about overcapacity.

Airbus trimmed A330 output in January from about four a month in 2019, Reuters reported earlier this month.

In Monday’s filing, Airbus said it would maintain production of the A330neo at 3.5 aircraft a month.

(Reporting by Tim Hepher; Editing by Mark Potter, William Maclean)

Norwegian to Cancel Approximately 3000 Flights and Implement Temporary Layoffs Due to COVID-19

March 10, 2020 / WIL BALDWIN

Due to the COVID-19 situation, Norwegian is preparing to cancel approximately 3000 flights between mid-March and mid-June. This represents approximately 15 percent of the total capacity for this period. The company has also put several other measures in place, including temporary layoffs of a significant share of its workforce.

The past week, Norwegian has experienced reduced demand on future bookings. The company will cancel about 3000 flights to meet the change in demand. The cancellations represent approximately 15 percent of the total capacity for the period mid-March to mid-June. It will affect the entire network and more details will be shared as soon as they are ready to be implemented. Affected customers will receive information about these changes as soon as they take place.

“This is a critical time for the aviation industry, including us at Norwegian. We encourage the authorities to immediately implement measures to imminently reduce the financial burden on the airlines in order to protect crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.

“Unfortunately, cancellations will affect a significant share of our colleagues at Norwegian. We have initiated formal consultations with our unions regarding temporary layoffs for flying crew members as well as employees on the ground and in the offices. We will continue to engage in constructive dialogue with unions and employees to work through this difficult situation together,” said Schram.

Norwegian will continue to share updates with its customers, the financial market and the media once new measures are implemented.

Tesla Ordered by German Court to Stop Cutting Down Trees for Gigafactory

February 16, 2020 / WIL BALDWIN

BERLIN (Reuters) – A German court on Sunday ordered Tesla Inc to stop clearing forest land near the capital Berlin to build its first European car and battery factory, a victory for local environmental activists.

The U.S. electric carmaker announced plans last November to build a Gigafactory in Gruenheide in the eastern state of Brandenburg.

The court ruling, by the higher administrative court of the states of Berlin and Brandenburg, comes after the state environmental office gave a green light to clear 92 hectares of forest for the plant.

Planning permission has not yet been granted to build the Gigafactory, however, meaning U.S. entrepreneur Elon Musk’s company is preparing the ground at its own risk.

In a statement, the court said it had issued the order to stop the tree-felling because it would have only taken three more days to complete the work.

Otherwise the clearance would have been completed before judges made a final decision on the complaint brought by a local environmentalist group called the Gruene Liga Brandenburg (Green League of Brandenburg).

“It should not be assumed that the motion seeking legal protection brought by the Green League lacks any chance of succeeding,” the court statement added.

Lawmakers from the pro-business Christian Democrat and Free Democrat parties have warned that the legal battle waged against the Gigafactory would inflict serious and long-lasting damage on Germany’s image as a place to do business.

Local and national lawmakers have been caught out by the strength of opposition to the Gigafactory, with hundreds of demonstrators protesting over what they say is the threat it poses to local wildlife and water supplies.

Tesla currently has two Gigafactories in the United States and one in Shanghai, China.

Tesla shares have surged 340% since early June as more investors bet on Musk’s vision.

(Reporting by Douglas Busvine; Editing by Lisa Shumaker)

Airbus Says Higher U.S. Tariffs on EU Planes Will Harm U.S. Airlines, Consumers

February 14, 2020 / WIL BALDWIN

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)

U.S. Transportation Department Office of Inspector General to Audit FAA Pilot Training Requirements

February 10, 2020 / WIL BALDWIN

WASHINGTON (Reuters) – The U.S. Transportation Department’s Office of Inspector General said on Monday it will audit Federal Aviation Administration pilot training requirements for U.S. and foreign air carriers after two deadly crashes of Boeing’s <BA> 737 MAX.

The audit will also review international civil aviation authorities’ requirements for carriers’ pilot training regarding the use of flight deck automation.

Pilots have been harshly critical of Boeing’s decision not to disclose details of a new automation system – known as the Maneuvering Characteristics Augmentation System, or MCAS – that has been linked to both fatal crashes.

The Inspector General cited a report by Indonesia’s Lion Air that “responses to erroneous activations of MCAS contributed to the crash, raising international concerns about the role of pilot training.”

The report said Boeing’s safety assessment assumed pilots would respond within three seconds of a system malfunction. But on the fatal flight and one that experienced the same problem the previous evening, it took both crews about eight seconds to respond.

Boeing declined to comment on the new review.

The FAA said it would cooperate with the inspector general’s review. “Raising and harmonizing pilot training standards across the globe are among the FAA’s top aviation safety priorities,” the FAA said. “We continue to pursue expanded conversations among the world’s aviation regulators to identify ways to enhance international aviation safety through robust pilot training programs.”

Boeing has proposed new simulator training for pilots on a series of scenarios before they are allowed to resume 737 MAX flights.

The MAX is not expected to be freed to fly until late April at the earliest. In March, the department’s IG said it would audit the FAA’s certification of the Boeing 737 MAX.

The Trump administration on Monday proposed an additional $30 million in it 2021 budget “to improve aviation oversight, following recommendations from the Boeing 737 MAX investigations.”

The funding would support 13 new full-time positions for the creation of an office mandated by Congress to oversee the FAA’s delegation of some certification tasks to Boeing and other plane-makers. The FAA would also use some of the funds for data collection and for “technological advances that we use to assess safety data,” Deputy FAA Administrator Dan Elwell said.

(Reporting by David Shepardson; Editing by Dan Grebler)

FILE PHOTO: Aerial photos show Boeing 737 Max airplanes on the tarmac in Seattle

AirAsia Shares Plunge After Airbus Bribery Allegations

February 2, 2020 / WIL BALDWIN

KUALA LUMPUR (Reuters) – Shares of Malaysia’s AirAsia Group <5099.KL> fell on Monday, after allegations by Britain’s Serious Fraud Office that Airbus <EADSY> paid a bribe of $50 million to win plane orders from Asia’s largest budget airline group.

AirAsia shares fell as much as 11% to 1.27 ringgit – their lowest since May 2016 – while those of AirAsia X tanked 12% to their all-time low of 11.5 Malaysian sen.

Malaysia’s anti-graft agency is investigating the allegations from Britain. AirAsia has said it never made any purchase decisions that were premised on Airbus sponsorship, and that it would fully cooperate with the Malaysian Anti-Corruption Commission (MACC).

Malaysia’s Securities Commission said on Sunday it would also examine whether AirAsia broke securities laws.

The allegations were revealed on Friday as part of a record $4 billion settlement Airbus agreed with France, Britain and the United States. Prosecutors said the company had bribed public officials and hidden payments as part of a pattern of worldwide corruption.

Airbus said at the weekend it would not comment on the Malaysian investigations.

Analysts said the accusation against AirAsia comes at a particularly bad time as airlines grapple with a slowdown in business because of the fast-spreading coronavirus epidemic that has killed more than 300 people in China and disrupted air travel.

“Besides being embroiled in this corruption scandal, we expect a tough operating environment to persist over the medium term with maintenance cost remaining high … and concerns over the Wuhan virus outbreak which could derail propensity for air travel in the region,” Malaysia’s Kenanga Investment Bank wrote in a research note.

TA Securities downgraded AirAsia Group stock to “sell” from “buy”.

“We choose the ‘sell first, ask questions later’ approach to avoid the uncertainty in association with the corruption investigation by MACC, where the impact on AirAsia could be significant in terms of corporate governance,” it said in a note.

(Reporting by Krishna N. Das; Editing by Himani Sarkar and Christopher Cushing)

FILE PHOTO: Thai AirAsia Airbus A320 plane prepares for take off at Don Mueang International Airport in Bangkok

Record $4 Billion Airbus Fine Draws Line Under ‘Pervasive’ Bribery

January 31, 2020 / WIL BALDWIN

FILE PHOTO: FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse

PARIS/LONDON/WASHINGTON (Reuters) – Airbus <EADSY> bribed public officials and hid the payments as part of a pattern of worldwide corruption, prosecutors said on Friday as the European planemaker agreed a record $4 billion settlement with France, Britain and the United States.

The disclosures, made public after a nearly four-year investigation spanning sales to more than a dozen overseas markets, came as courts on both sides of the Atlantic formally approved settlements that lift a legal cloud that has hung over Europe’s largest aerospace group for years.

“It was a pervasive and pernicious bribery scheme in various divisions of Airbus SE that went on for a number of years,” U.S. District Judge Thomas Hogan said.

The deal, effectively a corporate plea bargain, means Airbus has avoided criminal prosecution that would have risked it being barred from public contracts in the United States and European Union – a massive blow for a major defence and space supplier.

Prosecutors said individuals could still face criminal charges, however.

Airbus, whose shares closed down 1%, has been investigated by French and British authorities for alleged corruption over jet sales dating back more than a decade. It has also faced U.S. inquiries over suspected violations of U.S. export controls.

“In reaching this agreement today, we are helping Airbus to turn the page definitively” on corrupt past practices, French prosecutor Jean-Francois Bohnert said.

France’s financial prosecutor said the company had also agreed to three years “light compliance monitoring” by the country’s anti-corruption agency.

The U.S. Department of Justice said the deal was the largest ever foreign bribery settlement.

CODE NAME ‘VAN GOGH’

In a packed hearing at London’s Royal Courts of Justice, an Airbus lawyer said the settlements “draw a clear line under the investigation and under the grave historic practices”.

Outlining detailed findings, the UK’s Serious Fraud Office (SFO) said Airbus had hired the wife of a Sri Lankan Airlines executive as its intermediary and misled Britain’s UKEF export credit agency over her name and gender, while paying $2 million to her company. The airline could not be reached for comment.

Click the link below to read the full story!

https://finance.yahoo.com/news/airbus-pay-4-billion-settle-152542295.html

Boeing Responds to Germany Heavy Lift Helicopter Invitation

January 14, 2020 / WIL BALDWIN

The H-47 Chinook offers the German Armed Forces a highly modern, proven and capable multi-mission helicopter
German industry will benefit from opportunities to work on the Chinook as well as opportunities across the Boeing enterprise

BERLIN, Germany, 14 January 2019 – Boeing [NYSA: BA] has submitted its response to the STH invitation to tender for Germany’s New Heavy Lift Helicopter program, also known as Schwerer Transporthubschrauber (STH). The response was submitted yesterday, 13 January.

The STH invitation to tender was issued on 24 June 2019 by the German procurement authority, specifically, the Federal Office of Equipment, Information Technology and In-Service Support of the Bundeswehr (BAAINBw). A contract award is expected in 2021 for the acquisition of 44 to 60 aircraft, including sustainment and training.

“We’re pleased to have submitted our response and look forward to working with the BAAINBw and German industry to bring the best value proposition to the German Bundeswehr,” said Michael Hostetter, vice president of Boeing Defense, Space & Security in Germany. “The H-47 Chinook is a one of a kind platform capable of performing missions that other helicopters cannot. It is a proven multi-mission heavy lift helicopter with advanced technology that meets the German requirements.”

Today, there are more than 950 Chinook aircraft operating in 20 countries, including eight NATO member countries (the Netherlands, Italy, Greece, Spain, Turkey, UK, Canada, and the United States). The Chinook will provide immediate interoperability to Germany while meeting a wide range of mission needs. As the world’s most proven heavy lift helicopter, the Chinook has a track record of on-time delivery and first time quality, with the lowest operating and acquisition costs and a technology roadmap that will keep it relevant for decades to come.

“We are committed to having the sustainment and training as well as parts of the production done in Germany,” said Dr. Michael Haidinger, president of Boeing Germany. “We will continue to build on and expand our Germany Industry Team for the H-47 Chinook Schwerer Transporthubschrauber competition. In addition, we are committed to bringing high end engineering and production opportunities from across the Boeing enterprise to German industry.”

JetBlue Founder David Neeleman Selects Salt Lake City as Headquarters for New Airline

December 16, 2019 / WIL BALDWIN

America’s newest and perhaps most innovative airline does not yet have a name, or any airplanes. But it now has a headquarters.

David Neeleman’s startup will be based in Salt Lake City, where it plans to spend a capital investment of $3.2 million and create nearly 400 jobs over the next five years, according to local authorities. In return, the state offered tax rebates worth as much as about $1.1 million over five years.

“There’s a super strong technology base, and lower cost of living than California and some of the coastal areas,” Lukas Johnson, the airline’s chief commericial said in an interview. “We want to focus more on the technology aspect of the transportation side, and it makes a lot of sense. The tech sector is booming out here.”

Click the link for the full story! https://finance.yahoo.com/news/jetblue-founder-david-neeleman-selects-195511487.html

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