Tag: owner (Page 2 of 3)

Brookfield, GIC to Buy Railroad Owner Genesee & Wyoming

July 1, 2019 / WIL BALDWIN

July 1 (Reuters) – Canada’s Brookfield Asset Management Inc and Singaporean sovereign wealth fund GIC on Monday agreed to buy U.S. freight railroad owner Genesee & Wyoming Inc for about $6.4 billion in cash.

Brookfield and GIC’s offer of $112 per share represents a premium of 12 percent to Genesee’s closing price on Friday. Genesee shares were up about 8 percent in trading before the bell.

Including debt, the deal is valued at about 8.4 billion, the companies said in a statement.

Genesee & Wyoming’s revenue have increased at a compound annual growth rate of 16.8% since it floated in the stock market in 1996, rising to $2.3 billion in 2018 from $77.8 million, according to Genesee & Wyoming’s latest annual report.

The company owns a portfolio of 120 short-line railroads, predominantly in North America, with operations in Europe and Australia.

Reuters had reported on the deal on Sunday, citing sources.

The deal, which is expected to close by year end or early 2020, would be the latest big leveraged buyout by Brookfield, which agreed last year to buy Johnson Controls International Plc’s power solutions business for about $13 billion.

Citigroup Global Markets Inc served as the financial adviser to Brookfield and GIC, while BofA Merrill Lynch and Morgan Stanley & Co LLC advised Genesee.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D’Silva)

Textron Celebrates Delivery of 300th Cessna Citation CJ4

June 28, 2019 / WIL BALDWIN

WICHITA, KS (June 27, 2019) – Textron Aviation Inc., a Textron Inc. (NYSE:TXT) company, celebrated its leadership of the light jet segment with the delivery of the 300th Cessna Citation CJ4, the industry’s top performing aircraft in this segment. The milestone aircraft was delivered today to McNeilus Steel, based in Dodge Center, Minnesota.

“The Citation CJ4 continues to be a standout in the light jet segment due to its combination of high performance, low operating costs and class-leading cabin amenities,” said Rob Scholl, Textron Aviation senior vice president, Sales and Marketing. “Our light jet product range, led by the Citation CJ4, continues to pace this segment globally in terms of deliveries, primarily because customers appreciate what they get in terms of productivity and value.”

Founded in 1948, McNeilus Steel is a family owned metals distribution business and employs more than 450 people across locations in Dodge Center, Minnesota, Fargo, North Dakota, and Fond du Lac, Wisconsin. McNeilus is upgrading to full ownership of a CJ4, having been a fractional owner of a Cessna Citation CJ1+ since 2016.

“Our reputation is built on customer service and our Citation CJ4 will help us strengthen that reputation through even more personal interaction with our customers,” said Levi McNeilus, director of Purchasing at McNeilus.

Introduced in 2010, the Citation CJ4 is the largest of the Cessna light jet family of aircraft that includes the Citation CJ3+ and the Citation M2. The CJ4 allows customers to go further with the leading range-to-payload ratio and a best-in-class IFR range of 1,926 nautical miles (3,567 km) with a maximum cruise speed of 451 knots (true airspeed).

The CJ4 is certified for single pilot operation, has seating for nine passengers and includes a notable 1,040-pound baggage capability. Other features include single point refueling, an externally serviceable lavatory and excellent range, delivering what crew and cabin passengers appreciate.

Leading the light jet segment

Cessna Citations continue to lead this segment, with over 5,000 light jets delivered throughout the world, offering customers the broadest range of products on the market. From the popular entry level Cessna Citation M2, to the upgraded efficiency and comfort of the CJ3+ and the leading CJ4, Textron Aviation’s Citation family of light business jets has evolved to offer a range of capabilities, systems and options unmatched in its class.

Taiwan’s China Airlines Signs MOU for 11 Airbus A321neo Jet’s

June 19, 2019 / WIL BALDWIN

Le Bourget, France, June 19 (Reuters) – Airbus unveiled an aircraft deal with Taiwan’s China Airlines on Wednesday, snatching the carrier’s medium-haul fleet renewal from Boeing a day after its U.S. rival made a shock entry into the single-aisle fleet of British Airways owner IAG.

The European planemaker said China Airlines had signed a preliminary deal to buy 11 A321neo aircraft, worth about $1.4 billion at list prices, while leasing another 14.

Although much smaller than the IAG letter of intent for 200 Boeing 737 MAX announced on Tuesday, the China Airlines deal signals intensified competition in Asia where Boeing this week predicted 40 percent of jets would be delivered over the next 20 years.

Airlines can rarely be persuaded to jump ship to rival suppliers because of the costs of training and parts, but this week’s Paris Airshow has witnessed two such announcements as sold-out planemakers mount incursions to continue their growth.

In a further competitive twist, Boeing announced on Monday it would take over the supply of spare parts for the remaining Airbus A320 fleet at British Airways.

China Airlines announced the leasing part of the deal in May and Reuters reported it would pave the way for the Taiwan carrier to switch its medium-haul fleet to the Airbus A320neo.

The rare deal to replace older 737s took years to complete and was drafted before the 737 MAX was engulfed by a crisis involving two crashes and a worldwide grounding, sources said.

(Reporting by Tim Hepher, Editing by Mark Potter)

Wizz Air Looks to Connect the Dots with Long-Range A321’s

June 19, 2019 / WIL BALDWIN

LE BOURGET, France, June 19 (Reuters) – Wizz Air will use 20 new extended-range, narrow body Airbus jets primarily to connect existing destinations in its disparate network rather than to fly to new places, the budget airline’s Chief Executive Jozsef Varadi said on Wednesday.

Indigo Partners, the private equity firm of veteran low-cost airline investor Bill Franke, agreed on Wednesday to acquire 50 of the new long-range version of Airbus’ A321neo jet, 20 of which will go to Wizz.

Wizz, which operates a fleet of 113 Airbus A320 and Airbus A321, would not need to change its operating model to accommodate the new A321XLR jets, Varadi said, as it would be able to fly essentially the same planes a little longer.

“Our network spans from the Canary Islands to Astana in Kazakhstan, from Reyjavik in Iceland to Dubai,” Varadi told Reuters after the announcement at the Paris Airshow.

“The XLR gives use the opportunity to connect more dots in our existing network. This is what we’re looking at.”

Airbus opened the Paris Airshow with the launch of the A321XLR, but the announcement was overshadowed on Tuesday when Boeing said British Airways-owner IAG intended to order 200 of its grounded 737 MAX jets.

Hungary-based Wizz, which is focussed on central and eastern Europe, said it had used existing option positions to secure the deal for the A321XLRs, bringing the airline’s total of outstanding firm orders for Airbus aircraft to 276 jets.

Varadi said that in the longer term, it was possible the jet would help open routes to new destinations, but it was not a priority.

“We have always been excited about planting new flags in new territories,” Varadi said. “But the vast majority of the XLR capacity will come in existing markets.”

(Reporting by Alistair Smout; Editing by Mark Potter)

Boeing 737 MAX Boosted by IAG Plan to Order 200 Jets

June 18, 2019 / WIL BALDWIN

PARIS, June 18 (Reuters) – Boeing’s grounded 737 MAX jet received a boost on Tuesday after British Airways-owner IAG signed a letter of intent to order 200 of the planes and said it was confident that it would return to service in the coming months.

Boeing said the deal had a value of more than $24 billion at list prices.

IAG said the mix of 737-8 and 737-10 aircraft, to be delivered between 2023 and 2027, would be powered by CFM Leap engines and used across a number of its airlines including British Airways, Vueling and Level.

The MAX 737 was grounded in March following two deadly crashes, and Boeing has been working on a software fix to get the jet back flying by the end of the year.

IAG Chief Executive Willie Walsh said he had experienced Boeing’s MCAS anti-stall software in person, adding it was “very helpful to see it in operation” and to “understand the changes” that Boeing was proposing.

“It gave me confidence both in terms of the aircraft and the changes that Boeing introduced,” he said at the announcement of the deal at the Paris Airshow.

“I am confident in Boeing.”

Boeing shares rose 2% on the announcement. The company is working towards a certification flight with regulators soon.

Boeing commercial airplanes boss Kevin McAllister said the decision of when the MAX flies again was in the hands of the regulators.

(Reporting by Tim Hepher, Eric M. Johnson and Alistair Smout Editing by Jane Merriman and Mark Potter)

Virgin Atlantic In, IAG Out in Race for Thomas Cook Airlines

May 10, 2019 / WIL BALDWIN

LONDON (Reuters) – The chief executive of British Airways owner IAG ruled out bidding for Thomas Cook’s airline unit on Friday, a day after rival Virgin Atlantic was reported to be interested in part of the business.

Lufthansa and private equity fund Indigo Partners are seen among the front-runners for Thomas Cook’s airlines after the firm put it up for sale in February, to raise cash after a string of profit warnings in 2018.

IAG had previously been linked with the business, but on Friday, Chief Executive Willie Walsh said that his firm had not made a bid.

“In relation to Thomas Cook… we’re not putting in any bid,” Walsh told reporters.

He added in an analyst call later in the day that the firm was not actively pursuing M&A at the moment but was in a strong position to do so if something attractive came up.

Virgin Atlantic has put in a preliminary offer for the tour operator’s UK long-haul business, Sky News reported on Thursday. Thomas Cook and Virgin Atlantic both declined to comment on the report.

Lufthansa is a bidder for Thomas Cook’s German airline Condor with an option to acquire the remaining airlines of the British travel group, Lufthansa’s CEO said on Tuesday.

Indigo Partners is also a likely suitor for Thomas Cook’s airline business, sources said last week, adding that the deadline for initial bids was on Tuesday earlier this week.

An unexpectedly warm summer in northern Europe last year deterred holiday makers from booking lucrative last minute getaways, resulting in two major profit warnings for the world’s oldest travel company.

Worries about the firm’s ability to pay its debts pushed the yield on its euro-denominated bonds that mature in 2022 to a record high last Friday, and Thomas Cook said later in the day that it was in talks with its lenders about bolstering its finances.

Thomas Cook’s half-year earnings release for the six months to March 31 is due next Thursday.

(Reporting by Alistair Smout; Editing by Keith Weir)

Virgin Atlantic Posts Annual Loss for Second Year Running

April 10, 2019 / WIL BALDWIN

(Reuters) – Virgin Atlantic on Wednesday reported an annual pretax loss for the second consecutive year, hit by a shaky economy, the higher costs of fuel generated by a weaker British pound and problems with Rolls Royce’s Trent engines.

The airline, the 1980s brainchild of British billionaire Richard Branson, fell back into the red in 2017 after three years of profits, as competition intensified and the weakening of the pound added to already rising fuel costs.

Best known in Europe for the trans-Atlantic planes it flies with Air France-KLM and Delta, Virgin said its loss before tax and exceptional items was 26.1 million pounds ($34.12 million) for the year ended Dec. 31, compared to a loss of 49 million pounds in 2017.

Total revenue rose 5.8 percent to 2.78 billion pounds, as passenger numbers grew just under 5 percent to 5.4 million and revenue per customer rose 1.7 percent.

The company said performance had suffered from economic uncertainty and the weaker pound – which increases costs because fuel is priced in dollars – as well as the well-documented problems of the Trent 1000 engines used on its Boeing 787 jets.

“While a loss is disappointing, our performance has improved in 2018 despite challenging economic conditions and put us on a trajectory for growth and return to profitability,” Chief Executive Officer Shai Weiss said in a statement.

Rolls-Royce on Wednesday agreed to an early inspection of some Trent 1000 TEN engines by regulatory authorities, a week after Singapore Airlines grounded two Boeing 787-10 jets fitted with the units.

British Airways owner IAG in February chose Boeing 777-9s, rather than a competing package from Airbus in part powered by Rolls, underlining the risks to airlines from the engine issues.

Since then the industry has been thrown into chaos by the grounding of Boeing’s new 737 MAX planes after a second fatal crash within six months.

The pound fell 5.6 percent against the U.S. dollar, in 2018 as Britain contended with the political and economic uncertainty generated by its negotiations on leaving the European Union.

Finance chief Tom Mackay said that while economic factors would continue to challenge the carrier in the year ahead, Virgin Atlantic was in a strong cash position.

The results are the company’s first since its acquisition of troubled regional airline Flybe for $2.8 million earlier this year, in a joint bid with Stobart Group and Cyrus Capital.

($1 = 0.7649 pounds)

(Reporting by Noor Zainab Hussain and Pushkala Aripaka in Bengaluru; Editing by Anil D’Silva)

IAG Says New Norwegian Bid Unlikely, but ‘Never Say Never’

March 6, 2019 / WIL BALDWIN

BRUSSELS (Reuters) – British Airways owner IAG is unlikely to renew its interest in Norwegian Air after ruling out a new bid for the Scandinavian carrier earlier in the year, but “never say never”, IAG Chief Executive Willie Walsh said on Wednesday.

“I’d never say never, but I think it’s unlikely,” Walsh told reporters on the sidelines of the Airlines for Europe summit in Brussels.

IAG sold its stake in Norwegian when it ended its interest in the airline, which competes with IAG’s low-cost long-haul Level brand, earlier this year.

“If there was a case that we might have done that (renewed our interest), we probably would have retained the shares in Norwegian,” he added.

Norwegian Air Shuttle; 737MAX-8; Air to Air; K66675

Asked if Level could expand into Scandinavia, Walsh said: “It could, ultimately.”

“There are several significant markets that are underserved from a long-haul point of view and can be best served by a low-cost model,” he said.

He also said that, although he was still not interested in buying A380s, those who wanted to approach him with offers after Airbus said it was scrapping production of the superjumbo should do so.

“I’m not looking to buy A380s. If there are people looking to sell them, they should probably approach us, because we would be one of the few people who might be interested. But I’m not looking to buy,” he said. “Let’s see what happens.”

(Reporting by Alistair Smout; Editing by Jason Neely and Mark Potter)

BA Owner IAG Expects No Earnings Growth in 2019

February 28, 2019 / WIL BALDWIN

LONDON, Feb 28 (Reuters) – British Airways owner IAG said it expected earnings in 2019 to be flat after it weathered the impact of rising fuel costs and air traffic control disruption to meet expectations for its 2018 results on Thursday.

IAG reported a 9.5 percent rise in operating profit before exceptional items for the year to December 31 to 3.23 billion euros, but said there would be no growth in 2019 as earnings would be in line with the previous year’s results.

“This was a very good performance despite three significant challenges: fuel prices increasing 30 percent, considerable Air Traffic Control disruption and an adverse foreign exchange impact of 129 million euros,” Chief Executive Willie Walsh said.

IAG said that passenger revenue rose 6.2 percent across the group, with passenger unit revenue up 2.4 percent.

In a separate statement, IAG said it would order 18 Boeing 777-9s and options for 24 more for British Airways to replace 14 747-400s and four 777-200s between 2022 and 2025.

(Reporting by Alistair Smout, editing by James Davey)

International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United States, and rest of the world. The company operates under the British Airways, Iberia, Vueling, LEVEL, IAG Cargo, Avios, and Aer Lingus brands.

IAG Rules Out New Bid for Norwegian Air

January 24, 2019 / WIL BALDWIN

LONDON/OSLO (Reuters) – British Airways owner IAG (ICAG.L) said on Thursday it would not make a new bid for Norwegian Air (NWC.OL) and would sell its remaining stake in the budget airline, sending Norwegian’s shares sharply lower.

Shares in Norwegian, which has been under pressure over the past 18 months to control costs and shore up its balance sheet, dropped as much as 26 percent after IAG’s statement to hit their lowest since November 2012.

“International Airlines Group (IAG) confirms that it does not intend to make an offer for Norwegian Air Shuttle ASA and that, in due course, it will be selling its 3.93 percent shareholding in Norwegian,” IAG said in a statement.

IAG’s shares turned positive after its statement, and were up 1.5 percent at 1305 GMT.

Norwegian, which has shaken up long-haul rivals by offering cut-price transatlantic fares, said in May it had received two conditional proposals for a full takeover from IAG, but had rejected them because they undervalued the company.

IAG CEO Willie Walsh last year ruled out launching a hostile takeover approach for Norwegian, and also said he wouldn’t get drawn into a bidding war. In addition to British Airways, IAG also owns Iberia, Vueling and Aer Lingus.

A spokeswoman for IAG declined to give further details on the decision not to pursue Norwegian further, but said “we wish Norwegian every success in the future”.

NO MARGIN OF ERROR

“Norwegian’s plans and strategy remain unchanged. The company’s goal is to continue building a sustainable business to the benefit of its customers, employees and shareholders,” Chairman Bjoern Kise said in a statement.

Norwegian has quickly built its long-haul route network, and in October overtook IAG’s British Airways as the biggest non-U.S. airline on transatlantic routes to and from the New York area.

But the Nordic carrier has had to take action to improve its financial position in recent months. In December, it announced a $230 million cost savings programme and refinanced one Boeing (BA.N) 787 Dreamliner as part of a series of steps it said would generate more than $30 million in liquidity.

“Norwegian’s finances are already under pressure, and a share sale (by IAG) will put pressure on the stock, making it hard for them to raise money,” analyst Per Hansen of brokerage Nordnet said in a note to clients.

“They no longer have any margin of error. If they were to need cash, and no alternative buyers emerge, the stock price could end up looking like a jetliner running out of fuel.”

(Reporting by Alistair Smout in London and Terje Solsvik in Oslo, additional reporting by Helen Reid in London and Stine Jacobsen in Copenhagen, Editing by Paul Sandle and Mark Potter)

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