Tag: protection (Page 2 of 3)

Economic Stabilization Fund Approves Lufthansa Package

May 27, 2020 / WIL BALDWIN

Deutsche Lufthansa AG has been informed by the Economic Stabilization Fund (WSF) of the Federal Republic of Germany that the WSF has approved the stabilization package for the company. The Executive Board also supports the package.

The package provides for stabilization measures and loans of up to EUR 9 billion.

The WSF will make silent participations of up to 5.7 billion euros in total in the assets of Deutsche Lufthansa AG. Of this amount, approximately EUR 4.7 billion is classified as equity in accordance with the provisions of the German Commercial Code (HGB) and IFRS. In this amount, the silent participation is unlimited in time and can be terminated by the company on a quarterly basis in whole or in part. In accordance with the agreed concept, the remuneration on the silent participations is 4% for the years 2020 and 2021, and rises in the following years to 9.5% in 2027.

Furthermore, the WSF will subscribe to shares by way of a capital increase in order to build up a 20% stake in the share capital of Deutsche Lufthansa AG. The subscription price will be 2.56 Euro per share, so that the cash contribution will amount to about 300 million Euro. The WSF may also increase its stake to 25% plus one share in the event of a takeover of the company.

In addition, in the event of non-payment of remuneration by the Company, a further portion of the silent participation is to be convertible into a further shareholding of 5% of the share capital at the earliest from 2024 and 2026 respectively. The second conversion option, however, only applies to the extent that the WSF has not previously increased its shareholding in connection with the above-mentioned takeover case. Conversion should also be possible for dilution protection. Subject to the full repayment of the silent participations by the company and a minimum sale price of EUR 2.56 per share plus an annual interest of 12%, the WSF undertakes, however, to sell its shareholding in full at the market price by 31 December 2023.

Finally, the stabilization measures are supplemented by a syndicated credit facility of up to EUR 3 billion with the participation of KfW and private banks with a term of three years. This facility is still subject to the approval of relevant bodies.

The expected conditions relate in particular to the waiver of future dividend payments and restrictions on management remuneration. In addition, two seats on the Supervisory Board are to be filled in agreement with the German government, one of which is to become a member of the Audit Committee. Except in the event of a takeover, the WSF undertakes not to exercise its voting rights at the Annual General Meeting in connection with the usual resolutions of ordinary Annual General Meetings.

The stabilization package still requires the final approval of the Management Board and the Supervisory Board of the company. Both bodies will come together shortly to adopt resolutions on the stabilization package. The capital measures are subject to the approval of an extraordinary general meeting.

Finally, the stabilization package is subject to the approval of the European Commission and any competition-related conditions.

German Carmakers to Resume Production as Lockdowns Ease

April 16, 2020 / WIL BALDWIN

FILE PHOTO: VW hosts photo workshop at Zwickau plant

FRANKFURT (Reuters) – German carmakers including Volkswagen <VOW.DE> and Mercedes-Benz <DAI.DE> will restart production at some German factories next week after the country eased restrictions designed to contain the coronavirus outbreak.

Chancellor Angela Merkel on Wednesday said that Germany has achieved a “fragile intermediate success” in its the fight against the coronavirus and that its emergence from lockdown would begin with the partial reopening of shops next week and schools from May 4.

Unlike Italy and Spain, Germany never banned car production, though factories came to a standstill after authorities restricted the movement of people and ordered the closure of car dealerships, hitting demand.

Volkswagen said it will start producing cars for its core brand in Zwickau, Germany, and in Bratislava, Slovakia, on April 20.

Plants in Russia, Spain, Portugal and the United States will ramp up production from April 27 onwards, joined by factories in South Africa, Argentina, Brazil and Mexico in May.

“With the decisions by the federal and state governments in Germany and the loosening of restrictions in other European states, conditions have been established for the gradual resumption of production,” Ralf Brandstaetter, Chief Operating Officer of the Volkswagen brand, said in a statement.

The carmaker has retooled production to ensure that workers keep 1.5 metres apart. Other measures include the staggering of shifts and lunch breaks, plus steps to change worker interaction in VW’s supply chain.

Bernd Osterloh, Chairman of the company’s Works Council, said: “In the light of the pandemic, we need to adapt our routines. One answer is our new agreement on health protection. With about 100 measures, we are keeping the risk of infection at Volkswagen as low as possible.”

In China, where a Volkswagen has already implemented health measures, 32 of the 33 plants have resumed production and no coronavirus infections among employees have been reported.

Mercedes-Benz parent Daimler said that its plants in Hamburg, Berlin and Untertuerkheim will resume production next week. Its Berlin plant makes engine-management systems for vehicles sold in China.

Production will initially start in a one-shift system, Daimler said, with plants in Sindelfingen and Bremen also making preparations to ramp up production.

(Reporting by Edward Taylor and Jan Schwartz; Editing by David Goodman)

Alaska’s RavnAir Files for Bankruptcy as U.S. Treasury Mulls Grants

April 7, 2020 / WIL BALDWIN

WASHINGTON, April 6 (Reuters) – RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy Sunday and grounded all of its 72 planes as it waits on a decision from U.S. Treasury for government assistance.

The Trump administration is weighing applications from numerous airlines as it considers how to disburse $25 billion in passenger airline grants, $4 billion for cargo carriers and $3 billion for airport contractors. Congress approved the bailout funds to help air carriers cover payroll costs.

RavnAir, which filed for Chapter 11 bankruptcy protection in Delaware, said Sunday it was suspending all operations and laying off all employees.

“We took these actions to ensure our airline has a future, and to give us time to ‘hit pause'” while it seeks Treasury grants and “other sources of financial assistance that will allow us to weather the coronavirus pandemic and emerge successfully once it has passed.”

In a letter posted Sunday, RavnAir Chief Executive Dave Pflieger said the airline was working to “resume the vital air service you depend on to get home to your families, to your businesses, to medical appointments, and to other duties that are essential to our communities and the state of Alaska.”

Delta Air Lines Inc, American Airlines Group Inc , Spirit Airlines Inc, Southwest Airlines Co , United Airlines Holdings Inc and JetBlue Airways Corp are among the airlines that confirmed they filed before a Friday deadline set by Treasury to get speedy consideration.

On Sunday, top Democrats including House Speaker Nancy Pelosi and Senator Charles Schumer urged Treasury Secretary Steven Mnuchin to move quickly and not impose unreasonable conditions on the grants. Airline unions and many Democrats object to Treasury demanding significant equity or warrants as a condition to the grants.

(Reporting by David Shepardson; Editing by Lisa Shumaker)

British Airways, Pilots Union Agree on Preliminary Pay Deal to End Dispute

November 22, 2019 / WIL BALDWIN

FILE PHOTO: FILE PHOTO: British Airways logos are seen on tail fins at Heathrow Airport in west London

(Reuters) – British Airways and its pilots’ union BALPA have reached a preliminary agreement to end the pay dispute that resulted in the first walkout by pilots in the airline’s history, the union said on Friday.

The agreement came after the two sides held talks under the auspices of the ACAS arbitration service.

BALPA said in a statement: “We can confirm that BALPA, BA and ACAS have put together a new pay and conditions proposal and, subject to final checks, BALPA expects it will shortly be consulting its 4,000 BA members on them.”

A BA spokeswoman said “We welcome this positive step.”

As part of the agreement, BA agreed to insert an inflation protection clause to its previous pay offer of an 11.5% rise over three years, the Financial Times reported.

The airline also offered improvements to working conditions, rostering and flight bonuses, the paper added.

British Airways pilots went on strike for 48 hours in September, grounding 1,700 flights.

BA, part of International Consolidated Airlines Group <ICAG.L>, said in September that the strikes had cost it 137 million euros ($151 million).

(Reporting by Alistair Smout in London and Rama Venkat in Bengaluru; editing by Jonathan Oatis and Louise Heavens)

Evening taxi to Runway 6L, Toronto-Pearson

Collins Aerospace SelfPass Biometric Solution to Streamline Boarding Process at Las Vegas International Gates

September 28, 2019 / WIL BALDWIN

ANNAPOLIS, Maryland – Passengers traveling through Las Vegas’ McCarran Airport can look forward to a new streamlined journey with Collins Aerospace Systems’ SelfPass™ biometric solution. The solution, which is set to be installed at all of McCarran’s international gates, and will be available for demonstration at the Annual Airports Council International-North America conference this week in Tampa, Florida. Collins Aerospace is a unit of United Technologies Corp. (NYSE: UTX).

With SelfPass, there is no pre-registration required. Passengers simply step up to the camera for a facial scan to validate their identity against the U.S. Customs and Border Protection Traveler Verification Service, which retrieves their boarding details, and they then proceed to board the aircraft through the auto boarding gate.

“We have a 20-year history of successfully collaborating with McCarran Airport and we’re ready to help them streamline the passenger journey even further with expanded use of our SelfPass biometric solution,” said Christopher Forrest, vice president of Global Airport Systems for Collins Aerospace. “SelfPass takes less than one second to capture and process a passenger’s facial image and eliminates the need to repeatedly present travel documents, making the process more efficient for both passengers, airlines and airports.”

SelfPass is already live with one airline following a trial throughout the summer. Wider deployment of SelfPass is set to commence in November with the addition of a second airline. In all, 19 airlines will be operational when the installation is complete.

In additional to SelfPass, Collins Aerospace has been a long term provider of other key solutions that improve efficiencies at McCarran Airport. The ARINC MUSE Common-use passenger processing solution enables multiple airlines to share check-in desks and departure gates, the ARINC BagLink™ supports efficient and accurate baggage sorting and loading, and ARINC supplies self-service kiosks throughout the facility.

Bombardier Unveils New Light Rail Vehicle Safety System

June 10, 2019 / WIL BALDWIN

Bombardier unveils new innovative light rail vehicle safety system at UITP 2019 in Stockholm, Sweden.

COMPAS provides enhanced safety for passengers and drivers, helping to prevent derailing
Innovative overspeed protection system co-developed with Austrian Institute of Technology

Today, mobility solution provider Bombardier Transportation presented its new and innovative safety system for urban light rail vehicles at the UITP Global Public Transportation Summit in Stockholm. Called COMPAS (Collision and Overspeed Monitoring and Prevention Assistance System), the technology was developed in cooperation with Bombardier Transportation’s research partner the Austrian Institute of Technology & Mission Embedded and enhances safety for tram passengers and drivers.

Christian Diewald, Managing Director of Bombardier Transportation in Austria, said, “We have completed the development phase of COMPAS and will shortly start the operational evaluation in two existing vehicle fleets. I am especially happy that we are testing this safety innovation in the new vehicles for our customer Wiener Linien in Austria, but also with our customer in Blackpool, UK.”

COMPAS is the transportation industry’s only system that combines two of the most requested driver assistance functions, a vision-based overspeed prevention and an automated obstacle detection assistance system. It’s designed to ensure the driver always maintains full control over the vehicle by using digital track data and visual odometry to prevent the vehicle from exceeding its pre-defined speed limits, thus enhancing safety for those in and around the vehicle.

The new system is expected to be granted commercial service authorization by mid-2020, with additional functions, such as increased vehicle autonomy enabling automated operation in depots, planned to for future integration.

COMPAS builds upon Bombardier’s proven Obstacle Detection Assistance System (ODAS ), a cutting-edge safety innovation already proven in passenger in service since being introduced in Frankfurt, Germany in 2017. Overall, the ODAS system has been selected by five light rail vehicle operators.

Brazil Airline Azul’s Profits Drop 20% on Higher Expenses

May 9, 2019 / WIL BALDWIN

SAO PAULO, May 9 (Reuters) – Higher operational costs weighed on Brazil’s No. 3 airline, Azul SA, sending profits in the first quarter down 20% to 137.7 million reais ($35.06 million), despite significantly higher revenue compared to the same period last year.

While revenue grew 16% to 2.5 billion reais, personnel costs surged 37% amid continued expansion at the company.

Fuel costs also increased significantly, while other undisclosed costs jumped 34% to 224 million reais in the period.

Azul and its Brazilian competitors have faced higher costs in recent quarters due to the continued depreciation of the local currency, the real. While passengers buy their tickets in reais, many of the airline’s expenses, such as fuel, are denominated in the stronger U.S. dollar.

Earlier this year, Azul signed a tentative deal that ultimately fell through to take over a set of coveted domestic routes that were to be auctioned off by its rival Avianca Brasil, which is going through a bankruptcy protection process.

The routes were then set to go to its two larger competitors, Gol Linhas Aereas Inteligentes and LATAM Airlines Group, dealing a blow to Azul as it had hoped to break into the lucrative Sao Paulo-Rio de Janeiro route.

That route is currently dominated by Gol and LATAM and is considered to be among the most profitable in the country.

At the last minute, a judge indefinitely suspended Avianca’s auction which was due earlier this week.

($1 = 3.9273 reais) (Reporting by Marcelo Rochabrun; Editing by Bernadette Baum)

Avianca Brasil to Sell Some Assets to Azul

March 11, 2019 / WIL BALDWIN

SAO PAULO, March 11 (Reuters) – Brazilian airline Azul SA said on Monday it intends to pay $105 million for certain assets held by Avianca Brasil, which was headed to court to face aircraft lessors as it seeks to keep operating planes despite mounting late payments.

Azul said the non-binding purchase agreement would involve 70 pairs of slots, which grant airlines the rights to operate regular flights between airports.

Azul already operates two Airbus A320 planes that were previously used by Avianca Brasil until they were repossessed in December due to outstanding payments. Under the agreement announced on Monday, Azul said it could end up operating up to 30 Airbus planes currently in use by its rival.

Azul did not disclose how it would be able to take over the leases and the airline did not immediately respond to a request for comment.

Avianca Brasil filed for bankruptcy protection in December in an attempt to stall aircraft lessors who had sued to repossess its fleet, two months after the carrier started missing payments on many of its aircraft.

The Avianca Brasil hearing scheduled for Monday in an appeals court will deal with a request from aircraft lessors, including Aircastle, that planes be repossessed as soon as possible, after a bankruptcy judge extended the airline’s control over the aircraft until at least April.

Since filing for bankruptcy, Avianca Brasil has secured a $75 million loan from hedge fund Elliot Management.

(Reporting by Marcelo Rochabrun and Ana Mano Editing by Chizu Nomiyama and Bill Trott)

Azul Linhas Aereas Embraer 195 at Curitiba Airport, Brazil

Avianca Brasil Looking for Additional Capital

January 23, 2019 / WIL BALDWIN

SAO PAULO, Jan 22 (Reuters) – Avianca Brasil, which filed for bankruptcy protection in December, is looking for a cash injection and has hired Brazilian consulting firm Galeazzi & Associados to help in talks with investors and creditors, the airline said.

Galeazzi’s executives are already visiting the carrier’s creditors to discuss options, a source said, asking for anonymity to disclose private talks. Reuters first reported the news of the Galeazzi hire, citing sources.

Avianca shareholders are discussing a potential cash injection with different investors, including hedge fund Elliott Management Corp, two sources said. Any investment now would need to happen within the bankruptcy protection process, likely in the form of debtor-in-possession financing.

Elliott and Galeazzi did not immediately reply to requests for comment.

Any capital injection or loan would need authorization from the bankruptcy judge.

Avianca is battling two of its main aircraft lessors, Aircastle Ltd and General Electric Co’s unit GE Capital Aviation Services, who have tried so far unsuccessfully to ground or repossess 40 percent of its fleet.

Avianca also said in the statement it continues to operate normally.

The escalating legal battle has added to the uncertainty surrounding Avianca Brasil’s ability to maintain its current flight schedule.

(Reporting by Tatiana Bautzer Editing by Susan Thomas and Alistair Bell)

Unraveling The Boeing 737 MAX Lion Air Crash

November 15, 2018 / WIL BALDWIN

(Reuters) – The crash of a Boeing Co 737 MAX jet in Indonesia on Oct. 29 has raised questions on whether the manufacturer shared enough information with regulators, airlines and pilots about the systems on the latest version of its popular narrow-body plane.

The jet operated by budget carrier Lion Air crashed into the Java Sea shortly after take-off from Jakarta, killing all 189 people on board.

WHAT IS NEW ON THE 737 MAX?

The most hyped features of the 737 MAX compared with its predecessor, the 737NG, are more fuel-efficient engines.

But as a result of the larger engines, which are placed higher and further forward of the wing, the jet’s balance changed. To address that, Boeing put in place more anti-stall protections, Leeham Co analyst Bjorn Fehrm said in an online post.

An automated protection system called the Maneuvering Characteristics Augmentation System (MCAS) kicks in when the angle of attack is too high, when the plane’s nose is too elevated, threatening a stall.

WHAT IS ‘ANGLE OF ATTACK’?

On paper, it measures the angle between the air flow and the wing. But it is so fundamental to flight that historians say the only instrument on the Wright Brothers’ first aircraft was a piece of yarn designed to measure it.

If the angle of attack is too high, the airflow over the wing is disturbed, throwing the plane into an aerodynamic stall.

One of two angle of attack sensors on the Lion Air jet was faulty, according to Indonesian investigators.

The U.S. Federal Aviation Administration (FAA) last week warned airlines that erroneous inputs from those sensors could lead the jet automatically to pitch its nose down even when autopilot is turned off, making it difficult for pilots to control.

WHICH AIRLINES OPERATE THE 737 MAX?

Boeing has delivered 241 of the jets to customers since it entered service last year, according to its website.

Major operators include Southwest Airlines, American Airlines, Norwegian, Lion Air, Air Canada, China Southern, China Eastern and flydubai.

Another 4,542 have been ordered but not yet delivered.

WHAT DID AIRLINES AND PILOTS KNOW ABOUT THE SYSTEM?

Lion Air’s flight manual did not contain information about the new anti-stall system, according to investigators and an airplane flight manual seen by Reuters. U.S. pilots were also not made aware in training courses, pilot unions say.

American Airlines said it was “unaware” of some of the functionality of the MCAS system. [L4N1XQ23Q]

Boeing Chief Executive Dennis Muilenburg told Fox Business Network on Tuesday that Boeing provides “all of the information that’s needed to safely fly our airplanes”.

HOW WOULD A PILOT SHUT OFF THE SYSTEM?

Pilots can stop the automated response by pressing two buttons if the system behaves unexpectedly, the FAA says.

That action is set out in a checklist used by Lion Air pilots for in-air troubleshooting, an instructor said. It is also required to be committed to memory by pilots.

Pilots on a flight from Jakarta to Bali the day before the crash experienced a similar sensor issue but managed to land safely by turning off the system, the New York Times reported.

HOW WAS THE SYSTEM APPROVED?

The FAA holds the main responsibility for certifying Boeing jets and training programs for pilots, but local regulators also issue approvals for airlines based in their countries.

An unresolved question is how Boeing measured the system’s reliability and on what basis the FAA certified it as safe.

HOW ARE PILOTS TRAINED?

An FAA document on training requirements for 737 MAX pilots transitioning from the older 737NG has no reference to the new anti-stall system.

Lion Air says it followed a training regime approved by U.S. and European regulators. The training was restricted to three hours of computer-based training and a familiarization flight.

However, Brazil’s regulator told Reuters that it had required specific training for pilots on the anti-stall system.

WHAT HAS CHANGED SINCE THE CRASH?

Boeing last week issued a bulletin to airlines reiterating existing procedures and advising them to add information on the anti-stall system to flight manuals, which was quickly followed by an FAA directive making that mandatory.

The FAA and Boeing are studying the need for software changes, as well as revisions to training and operating procedures on the 737 MAX, the regulator said.

WHEN WILL THE FIRST REPORT ON THE CRASH BE RELEASED?

A preliminary report will be released on Nov. 28 or 29, according to Indonesian investigators. However, divers have yet to locate the airline’s cockpit voice recorder, which would shed light on pilot interactions that are important for gaining a fuller picture of the circumstances of the crash.

(Reporting by Jamie Freed in Singapore, Tim Hepher in Paris, David Shepardson in Washington, Eric M. Johnson in Seattle, Tracy Rucinski in Chicago and Marcelo Rochabrun in Sao Paolo; Editing by Dan Grebler)

Image from www.boeing.com

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