PARIS, Oct 16 (Reuters) – France and Germany have signed a binding deal on arm exports control rules for jointly developed programmes, such as the tank and the warplane of the future, the two countries said on Wednesday in a statement issued after a joint cabinet meeting held in Toulouse.
German curbs on arms exports to non-European Union or non-NATO countries have been a thorn in bilateral co-operation for years. Germany’s SPD party, part of the ruling coalition, is particularly concerned about the trade.
According to the deal signed on Wednesday, Germany will not block French exports to third countries provided equipment was made with less than 20% German components.
French firms, such as Nexter and Arquus, previously known as Renault Trucks Defense, say German restrictions have hindered export deals. Nexter was also worried about the feasibility of the tank of the future project (MGCS) that should be developed with German firm Krauss-Maffei Wegmann.
Airbus Defence & Space and Dassault equally complained that the SCAF fighter jet project with Germany and Spain could be left in limbo.
France and Germany tentatively agreed to speed up the development of the warplane in the next few months, French President Emmanuel Macron said during a news conference with German Chancellor Angela Merkel.
The two countries will sign in January 2020 a deal to develop the SCAF demonstrator programme, French minister of Armed Forces Florence Parly said on Twitter.
Besides defence deals, Paris and Berlin also said they agreed to give preferential treatment to European companies for the launch of space rockets.
(Writing by Benoit Van Overstraeten and Tangi Salaün; Editing by John Irish)
MILAN, Oct 14 (Reuters) – Alitalia is set to win a temporary lifeline on Tuesday, when its latest rescue deadline expires, with toll road operator Atlantia expected to give a conditional green light to hundreds of millions of euros of investment, according to two people close to the situation.
The future of the troubled Italian carrier remains in doubt with no binding offer and no clear business plan in sight but it should avoid an immediate liquidation after the expiry of the Oct. 15 deadline set by the industry ministry.
Atlantia, which is controlled by Benetton family, has been in talks since July over taking part in a government-orchestrated rescue of the airline, together with railway group Ferrovie dello Stato, the treasury and Delta Air Lines.
“Atlantia is expected to give its commitment to invest in Alitalia subject to several conditions,” one of the sources said. But issues that still cause concern range from potential antitrust problems, treatment of state aid under European Union rules, the cost of possible redundancies and the future of the carrier’s long-haul routes, the source said.
Oct. 15 is the latest in a series of deadlines set for Ferrovie and potential partners in a rescue for Alitalia, which has been under special administrators since May 2017 and needs new funds to continue flying.
The board of Atlantia, which runs Rome’s airports through its Aeroporti di Roma unit, is expected to approve a preliminary commitment to the Alitalia rescue on Tuesday, the sources said.
The rescue plans include potential investment of a total of around 1 billion euros in the carrier, which has cut costs under the special administrators but still burns cash and had only 310 million euros left at the end of September.
Atlantia is expected to invest some 300 million euros, depending on commitments from other partners.
A second source said more time was needed to iron out a complete business plan for Alitalia. Possible involvement by Delta Air Lines or Germany’s Lufthansa AG is still under discussion.
A third source said Atlantia, Ferrovie and other potential partners were under pressure from Italy’s Industry Ministry to present a binding bid and take control of the carrier which in the past two years has already received 900 million euros from the state to stay afloat.
Atlantia’s participation in the rescue was put in doubt this month when it wrote to the Industry ministry, urging a radical overhaul of the Alitalia plan if talks were to go ahead.
(Reporting by Francesca Landini, Stefano Bernabei, Giuseppe Fonte. Editing by Jane Merriman)
An Alitalia Airbus A320 takes off on September 26, 2017 from Toulouse-Blagnac airport in southwestern France. / AFP PHOTO / PASCAL PAVANI
Tesla charging station is pictured during the media day for the Shanghai auto show in Shanghai
(Reuters) – Electric carmaker Tesla Inc <TSLA> interfered with legitimate union organising and must read a notice to workers explaining their rights in a meeting requiring attendance from Chief Executive Elon Musk, a U.S. labour judge ruled on Friday.
The company committed a series of violations of the National Labor Relations Act in 2017 and 2018, Amita Baman Tracy, a California administrative law judge ruled in a court filing.
Among the violations of the law cited in the filing was a tweet sent by Musk in May 2018.
“Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare”, Musk wrote in the tweet http://bit.ly/2nR14f9 from last year.
The tweet amounted to “threatening employees” with loss of stock options if they vote in favour of the union, the judge said in her ruling on Friday.
The ruling has called on the electric carmaker to hold a meeting at its California assembly plant where either Musk or his agent must inform the workers that the National Labor Relations Board has concluded that Tesla broke the law.
Tesla did not immediately respond to a Reuters request for comment on Friday’s ruling.
In the past, the company has been plagued by safety complaints brought by workers, allegations that Tesla denies. Workers have said that long hours and pressure to deliver vehicles quickly takes a toll, and some have pushed for a union.
(Reporting by Kanishka Singh in Bengaluru; Editing by Sandra Maler)
NEW YORK (Reuters) – A federal appeals court revived a lawsuit by Spirit Airlines passengers who said the low-cost carrier blindsided them by imposing unexpected carry-on bag fees on tickets bought through Cheapoair, Expedia, Priceline and Travelocity.
The 2nd U.S. Circuit Court of Appeals in Manhattan said 22 passengers could sue for breach of contract because there was no evidence that Spirit promptly notified them about the fees, and there were “ambiguities” in the prices they would pay.
Spirit and its lawyers did not immediately respond to requests for comment.
Compared with many carriers, Spirit relies more on ancillary fees to offset the financial drag from lower base fares.
The plaintiffs accused the Miramar, Florida-based carrier of knowing that its online travel agents hid the “gotcha” bag fees they would have to pay at the airport.
They said these fees often exceeded the cost of their tickets, and totaled millions of dollars a year.
Spirit countered that federal law precluded the lawsuit, and that its “contract of carriage” specifically provided that a passenger could take one carry-on bag into the cabin, for a fee.
The appeals court returned the case to U.S. District Judge William Kuntz in Brooklyn, who had dismissed it last November.
“This is a great victory for air travelers nationwide,” the plaintiffs’ lawyer John Hermina said in an interview. He said his clients will pursue their case in the district court.
On Tuesday, Spirit advertised carry-on bag fees for an Oct. 1 flight to Fort Lauderdale, Florida, from New York’s LaGuardia Airport ranging from $28, if booked on its website, to $65, if paid at the gate. Base fares ranged from $26 to $121.99.
The case is Cox et al v Spirit Airlines Inc, 2nd U.S. Circuit Court of Appeals, No. 18-3484.
(Reporting by Jonathan Stempel in New York; Editing by Richard Chang)
OTTAWA (Reuters) – Airbus SE <EADSY> on Friday pulled out of a multibillion-dollar competition to supply Canada with 88 new fighter jets, a decision that boosts the chances of rival Lockheed Martin Corp <LMT>.
The defense arm of Airbus, which indicated last month it might withdraw, cited onerous security requirements and a late decision by Ottawa to loosen the rules for how much bidders would have to invest in Canada.
Airbus and other contenders had already complained the government appeared to be tilting the race in favor of Lockheed Martin’s F-35 plane, which the Royal Canadian Air Force wants. Canada is part of the consortium that developed the plane.
Canada launched the long-delayed competition last month and said it was confident no favoritism had been shown. Ottawa says the contract is worth between C$15 billion ($11.30 billion) and C$19 billion.
Canada’s official opposition Conservative Party, which is seeking to defeat Liberal Prime Minister Justin Trudeau in an October election, accused the government of gross mismanagement.
Reuters revealed in July that Airbus and Boeing Co <BA.N> had written to Ottawa to say they might pull out.
The firms are unhappy that in late May, the government dropped a demand that bidders must guarantee to give Canadian businesses 100% of the value of the deal in economic benefits.
Such legally watertight commitments, which Boeing, Airbus and Sweden’s Saab AB <SAABb.ST> had already agreed to, contradict rules of the F-35 consortium. Ottawa’s move allowed Lockheed Martin to stay in the competition.
“One of the strongest points of our bid was the fact we were willing to make binding commitments,” said an Airbus source, who requested anonymity given the sensitivity of the situation.
“Once this was loosened up to a point where these commitments were no longer valued in the same way”, the firm decided “that’s just too much”, added the source, who also cited security challenges.
European jets must show they can meet stringent standards required by the United States, which with Canada operates the North American Aerospace Defense Command.
“NORAD security requirements continue to place too significant of a cost on platforms whose manufacture and repair chains sit outside the United States (and) Canada,” Airbus said in a statement.
Canadian Procurement Minister Carla Qualtrough said she respected the Airbus decision, adding Ottawa was determined there should be a level playing field.
“This included adapting the economic benefits approach to ensure the highest level of participation among suppliers,” she said in emailed comments.
Canada has been trying unsuccessfully for almost a decade to purchase replacements for its aging F-18 fighters. The former Conservative administration said in 2010 it would buy 65 F-35 jets but later scrapped the decision, triggering years of delays and reviews.
Trudeau’s Liberals took power in 2015 vowing not to buy the F-35 on the grounds that it was too costly, but have since softened their line.
“Justin Trudeau has spent the past four years delaying and dithering on new fighter jets for Canada only to completely mismanage the competition process,” said Conservative defense spokesman James Bezan.
Lockheed Martin declined to comment while Boeing and Saab did not respond to requests for comment.
($1 = 1.3275 Canadian dollars)
(Reporting by David Ljunggren; Editing by David Gregorio)
FORT WORTH, Texas (15 August 2019) – Bell Textron Inc., a Textron Inc. (NYSE:TXT) company, announced the Federal Aviation Administration (FAA) has issued an Instrument Flight Rules (IFR) Supplemental Type Certificate (STC) for the Bell 407GXi. The certification is a requirement for the Navy Advanced Helicopter Training System competition, enabling the Bell 407GXi to replace the Bell TH-57 Sea Ranger as the US Navy’s training helicopter.
Bell’s replacement bid offers a unique combination of capability, ease of transition, and low sustainment costs, giving the best value to the Navy. Should the Bell 407GXi be selected for the US Navy Advanced Helicopter Trainer program, the company plans to conduct final assembly of the aircraft in Ozark, Alabama.
“The team did a great job ensuring the Bell 407GXi achieved the FAA’s IFR certification necessary to meet all of the Navy’s requirements,” said Mitch Snyder, president and CEO. “Bell is an instrumental part of the Navy’s training program and has been for more than 50 years, and we look forward to continuing the tradition for the next generation of Naval Aviators.”
A Bell to Bell transition offers low-risk to the Navy by streamlining instructor pilot and maintainer transition training as well as using common support equipment and infrastructure. The 407 airframe has already proven capabilities as the platform for the MQ-8C Fire Scout for the US Navy. Bell’s industry-leading customer service and support has established capability with cost-efficient and effective helicopter training solutions.
Bell proves its mature production and sustainment support capability every day by supporting more than 1,600 Bell 407s globally. These aircraft have nearly 6 million flight hours across the fleet and are actively performing flight training as well as military and para-public missions helicopter mission-set. The 407GXi’s Garmin G1000H™ NXi Flight Deck enhances situational awareness and reduces pilot workload by delivering easy-to-read information at a glance. The Bell 407GXi’s new IFR capability will allow all-weather operations while continuing to provide multimission capability safely, reliably, and effectively. The Bell 407GXi offers the lowest direct operating costs of any IFR-capable helicopter produced today. Combined with its proven performance, reliability, and ease of transition, the Bell 407GXi is the best value aircraft for US Navy helicopter training.
ORLANDO, Fla. (Reuters) – Billionaire Elon Musk’s SpaceX accused the U.S. Air Force of breaking contracting rules when it awarded money to three rocket makers but passed on Musk’s rival bid, and said the tender should be reopened, according to a court filing unsealed on Wednesday.
In the complaint, Space Exploration Technologies Corp said contracts were awarded for three “unbuilt, unflown” rocket systems that would not be ready to fly under the government’s timeline, “defeating the very objectives” outlined by the Air Force’s program.
SpaceX asked the court to force the Air Force to reopen the $2.3 billion Launch Service Agreements competition and reconsider the Hawthorne, California-based company’s proposal.
The agreement is part of a Department of Defense initiative to assure constant military access to space and curb reliance on Russian-made RD-180 engines.
In the watershed race for dominance in the space industry, new entrants including SpaceX and billionaire Jeff Bezos’ Blue Origin, compete for lucrative contracts for military launch services. The arena has been long dominated by incumbents like Boeing Co-Lockheed Martin Corp’s United Launch Alliance (ULA).
ULA was granted $967 million under the program for developing its heavy-lift Vulcan rocket, Blue Origin won $500 million for its New Glenn rocket, and Northrop Grumman Corp was awarded $791.6 million for its OmegA rocket development.
In separate court filings this week, all three companies argued they should be parties to the lawsuit because of their direct financial interest in its outcome.
A SpaceX spokesperson said the company sued to “ensure a level playing field for competition.”
Representatives for the Air Force and ULA did not immediately respond to requests for comment. Blue Origin declined to comment.
SpaceX’s complaint was filed with the U.S. Court of Federal Claims last Friday under seal, along with a request for the court to keep the proceedings secret under a protective order, citing proprietary information. A redacted complaint was filed Wednesday.
SpaceX alleged the Air Force broke contracting rules on five different counts and asked the court to halt deliveries of the award to the three companies and force a re-evaluation of the proposals.
The Air Force rejected a formal objection from SpaceX in April regarding the terms of the awards.
SpaceX has sued the government over contracts before, most prominently in 2014 to protest a multibillion-dollar, non-compete contract for 36 rocket launches to United Launch Alliance. It dropped the lawsuit after the Air Force agreed to open up the competition.
(Reporting by Joey Roulette in Orlando, Florida; Editing by Eric M. Johnson and Richard Chang)
FILE PHOTO: SpaceX headquarters is shown in Hawthorne, California, U.S. September 19, 2018. REUTERS/Mike Blake/File Photo
