Tag: Saudi (Page 2 of 3)

Jet Grounding and Delays Overshadow Dubai Airshow

November 15, 2019 / WIL BALDWIN

FILE PHOTO: Emirates Airline Boeing 777 planes at are seen Dubai International Airport in Dubai

DUBAI (Reuters) – An eight-month crisis over the grounding of Boeing’s 737 MAX jets and widespread industrial delays are setting an unpredictable backdrop to next week’s Dubai Airshow, with some airlines reviewing fleet plans even as others look for bargains.

The biennial civil and military expo is a major showcase for wares from jumbo jets to military drones but faces growing questions over demand and the capability of overstretched suppliers, delegates arriving for the Nov. 17-21 event said.

Top of their agenda will be the worldwide grounding of the 737 MAX in the wake of two deadly crashes.

Investors who have pushed up Boeing <BA> shares believe the planemaker is turning a corner after the eight month grounding, with the company predicting commercial flights in January. But it also faces a logjam of undelivered jets that could take 1-2 years to unwind.

State-owned flydubai expects its fleet will now shrink by a third this year, highlighting the cost of the grounding for the biggest MAX customer outside the United States. “Flydubai has very big ambitions … given the scale of those ambitions, there’s little they can do but wait and watch, like everyone else,” said Teal Group analyst Richard Aboulafia.

Boeing lost one potential MAX customer earlier this year as Saudi budget airline flyadeal ditched a provisional order.

Experts say airline frustrations with plane and engine makers could also disrupt plans by the world’s largest jetmakers pushing for order endorsements. The Middle East’s largest aerospace event will give Airbus <EADSY> and Boeing a chance to sit with some of their top customers who have threatened to walk from billions in deals.

The planemakers are struggling to deliver aircraft on time, forcing airlines to delay expansion plans, while engines on some jets are consistently causing issues for carriers.

“This seems to be a systemic issue across the board,” said Novus Aviation Capital Managing Director Mounir Kuzbari.

“As a result, we see stress on the relationship between airlines and the plane and engine makers.” Dubai’s Emirates, by far the region’s biggest airline, has issued a stern warning to plane and engine makers. It will no longer take delivery of aircraft that do not meet performance expectations, raising doubts over $35 billion in pending orders.

Airbus, Boeing and engine makers will be looking to allay concerns as they finalise jet sales with Emirates, which is also looking at reducing an order for the delayed Boeing 777X.

Airbus is seen close to a final order for A330neo and A350 jets while Boeing aims to salvage a provisional order for 787s.

GULF PRESSURE

Air Arabia could, however, steal the show with a planned order of up to 120 Airbus jets, industry sources say.

Kuwait’s Jazeera Airways is in negotiations with Airbus and Boeing for around two dozen airplanes.

Past editions of Dubai’s premier trade event have featured blockbuster deals, often led by Emirates as Gulf carriers redrew the aviation map around their ‘super-connector’ hubs.

But the Gulf hub model is increasingly under pressure as the once-rapid growth of the region’s biggest airlines slows.

“The market continues to be weak for all airlines in the region; we should see a further 2-3% reduction in passenger numbers for the full year,” said Diogenis Papiomytis, Frost & Sullivan’s Global Program Director for Commercial Aviation.

Middle East military leaders touring the displays will try to gauge whether they are on the cusp of another regional splurge on weapons after an escalation in Gulf tensions.

A series of attacks over the summer has highlighted potential security gaps among some of the world’s top defence spenders who now increasingly buy from China and Russia.

(Reporting by Alexander Cornwell, Tim Hepher, Ankit Ajmera, Stanley Carvalho; Editing by Mark Potter)

Arms Firms Fret Delays in Franco-German Fighter Project

October 7, 2019 / WIL BALDWIN

PARIS, Oct 7 (Reuters) – France’s Dassault Aviation and Europe’s Airbus have stepped up pressure on France and Germany to agree on the next stage of a planned fighter project, warning Europe’s arms industry and long-term security could suffer from delays.

The two companies are the leading industrial partners in a project to build a futuristic swarm of manned and unmanned warplanes, announced by the leaders of France and Germany two years ago and expanded earlier this year to include Spain.

Dassault and Airbus won a 65-million-euro contract in January to develop the concept for the Future Combat Air System (FCAS) but await a new contract to build demonstrators for interlinked fighters, drones and an “air combat cloud” by 2026.

Dassault Aviation Chief Executive Eric Trappier told a conference of policymakers last month that the demonstrator contract should have been launched in September but this was now slipping towards end-year. He called it “indispensable” to avoid any further delays in order to maintain the 2026 deadline.

No reason has been given for the delays.

On Monday evening, Dassault and Airbus amplified those warnings with a joint statement.

“If Europe does not move forward — and move forward quickly — on this programme, it will be impossible to maintain the development and production capabilities needed for a sovereign defence industry,” the companies said.

The warplane system is expected to be operational from 2040, with a view to replacing Dassault’s Rafale and the four-nation Eurofighter, in which Airbus represents both Germany and Spain.

The new project faces competition from Britain and its plans for a new combat jet dubbed “Tempest”.

The fighter developments have split the current Eurofighter consortium and led to a shake-up of industrial alliances as Italy joins Eurofighter partner Britain on Tempest, turning its back on Germany and Spain, while Sweden has opened the door to abandoning its independent stance by co-operating on Tempest.

The FCAS is also overshadowed by differences between France and Germany over export policy after Germany imposed a ban on arms exports to Saudi Arabia over the death of killing of journalist Jamal Khashoggi a year ago by Saudi operatives.

The ban, recently extended to March, has raised questions over a long-delayed Saudi border systems contract run by Airbus.

Airbus Defence and Space Chief Executive Dirk Hoke called in a magazine interview last week for the export ban to be relaxed. German Chancellor Angela Merkel’s government has said there is no reason for the moratorium to be lifted.

France and Germany are expected to discuss the issue at ministerial meetings this week.

AIRBUS SETBACK IN SPAIN

Airbus meanwhile faces a battle to shore up its position as a top defence contractor in Spain after losing its place as the representative of Spain’s interests on the upcoming fighter project to local defence electronics firm Indra Sistemas.

Spain last month named Indra as contractor for the Spanish share of the Franco-German-led FCAS project, displacing Airbus from the Spanish coordinator role it had held on Eurofighter.

Airbus officials have pledged to try to overturn the move but a Spanish defence source told Reuters there was no change in the decision.

Indra declined to comment.

Publicly, Airbus has said it was surprised by the decision but has pledged to continue to defend Spain’s best interests.

Dassault will meanwhile mark a long-awaited milestone on Tuesday when it delivers the first of 36 Rafales to India, the culmination of a fighter procurement process that lasted almost 20 years and involved the cancellation of a much larger deal.

La Tribune reported on Monday that France and India were discussing a possible repeat order for 36 more Rafales.

(Additional reporting by Emma Pinedo Gonzalez in Madrid, Tassilo Hummel in Berlin, Editing by Deepa Babington)

Boeing Delivers First 787-10 for Saudi Arabian Airlines

September 30, 2019 / WIL BALDWIN

NORTH CHARLESTON, SOUTH CAROLINA, Sept 30, 2019 – Boeing [NYSE:BA] delivered to Saudi Arabian Airlines (SAUDIA) its first 787-10 Dreamliner, which will play a key role in the airline’s fleet and network expansion. The largest member of the Dreamliner family sets the benchmark for fuel efficiency and operating economics and will complement SAUDIA’s fleet of 787-9.

“SAUDIA operates a state-of-the-art fleet equipped with the latest technology, and in addition to the airline’s existing Boeing 787-9 Dreamliners, is now adding the 787-10 variant which will further support future network growth plans,” said His Excellency Eng. Saleh bin Nasser Al-Jasser, Director General, SAUDIA. “The airplane’s onboard cabin features, long range capability and the latest in technological advancements are among the many aspects of what makes the Boeing 787 highly popular with our guests.”

In addition to the 787-10, SAUDIA operates 13 787-9 Dreamliner airplanes, and 33 777-300ER (Extended Range) jets.

“SAUDIA has been a valued partner with Boeing for nearly 75 years and this delivery marks another major milestone in our partnership. Our team takes great pride in building and delivering quality aircraft to SAUDIA and we are honored by the continuing confidence in the 787 Dreamliner and 777 families,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing, The Boeing Company. “The addition of the 787-10 to SAUDIA’s fleet will continue the superior inflight experience that passengers have come to expect of the Dreamliner. Moreover, the unmatched fuel efficiency of the 787 will help SAUDIA open new routes and achieve significant fuel savings and emission reduction.”

With the delivery to SAUDIA, the 787-10 continues to expand its global presence. More than 30 of this Dreamliner model have been delivered to seven operators since the airplane entered commercial service last year. As a stretch of the 787-9, the 787-10 adds about 40 more seats in a 2-class configuration and cargo capacity, offering 25 percent better fuel per seat and fewer emissions than the airplanes it replaces. With a range 6,345 nautical miles (11,750 kms), the 787-10 can fly more than 95 percent of the world’s twin-aisle routes.

Since entering service in 2011, the 787 family has enabled the opening of more than 235 new point-to-point routes and saved more than 40 billion pounds of fuel. Designed with the passenger in mind, the 787 family delivers an unparalleled experience with the largest windows of any commercial jet, large overhead bins with room for everyone’s bag, comfortable cabin air that is cleaner and more humid, and includes soothing LED lighting.

To optimize the performance of its 787 fleet, SAUDIA uses Boeing Global Services digital solutions powered by Boeing AnalytX such as Airplane Health Management (AHM), Maintenance Performance Toolbox and Crew Rostering and Pairing to optimize performance, manage global crew schedules and maintain their fleet. Boeing AnalytX is a suite of software and consulting services that transform raw data into efficiency, resource and cost savings in every phase of flight.

Boeing [NYSE:BA] delivered to Saudi Arabian Airlines (SAUDIA) its first 787-10 Dreamliner, which will play a key role in the airline’s fleet and network expansion.

Cirrus Aircraft Unveils TRAC Series Flight Training Aircraft

September 28, 2019 / WIL BALDWIN

Duluth, Minn. & Knoxville, Tenn. – Cirrus Aircraft has announced the TRAC Series, a purpose-built configuration of the best-selling SR Series line of aircraft developed specifically for flight training institutions. The TRAC Series is thoughtfully crafted with reliability, durability and economy in mind to meet the rigors of high-tempo flight operations, while providing industry-leading safety and performance for both the pilot trainee and flight instructor. Combining the Perspective+^TM by Garmin® flight deck along with the unrivaled performance and safety uniquely found in the SR Series, the TRAC Series includes tailored features such as rear seat push-to-talk functionality and a landing gear simulator aimed at increasing training productivity.

“Our commitment to flight training goes far beyond innovation in aircraft design to include a unique approach to attracting and training future generations of aviators,” said Zean Nielsen, CEO at Cirrus Aircraft. “The TRAC Series delivers a 21^st century solution for world-class, forward-thinking flight training institutions.”

Designed to be the ultimate training platform, the technologically-advanced TRAC Series boasts an impressive list of features and capabilities that complement the aircraft’s stable flight characteristics. The integrated Perspective+ flight deck includes two large flight displays, a Flight Management System (FMS) keypad controller, an Electronic Stability and Protection system, as well as integrated engine indication and crew alerting/warning systems – all features found on today’s advanced airliners.

“Premier flight programs around the world continue to select Cirrus Aircraft for their training fleets,” said David Moser, Vice President of Fleet & Special Mission Aircraft Sales at Cirrus Aircraft. “These partnerships have been instrumental in our development of the technologically-advanced, cost-effective TRAC platform designed exclusively for leading flight academies and universities across the globe.”

Cirrus Aircraft has redesigned the interior to meet the unique needs of a high-utilization training environment, replacing the luxury materials found in the SR Series with a durable all-weather floor liner and easy to clean wear-resistant seats. The spacious cabin provides an optimal workspace to learn and train, with more space than typical training aircraft, rear seats for additional students or observers and optional air conditioning for comfort in all seasons.

The TRAC SR20 comes equipped with a modern Lycoming IO-390, 215HP power plant, providing reliability and efficiency for up to 2,400 hours before overhaul, and features a durable all-composite airframe structure with the signature Cirrus Airframe Parachute System® (CAPS®), making the TRAC Series one of the safest and most versatile training airplanes available today. The TRAC Series is further enhanced by a wide array of interactive, tailored flight training content through Cirrus Approach^TM, including online courses, engaging videos and the award-winning iFOM (interactive Flight Operations Manual) for convenient learning anywhere in the world.

With the TRAC Series, Cirrus Aircraft is poised to expand an already impressive list of world-class flight training programs around the globe that operate fleets of Cirrus aircraft, including Emirates Airline, Lufthansa Aviation Training, the United States Air Force Academy, Airbus Flight Academy, Western Michigan University, Oklahoma State University, Japan Civil Aviation College, the Royal Saudi Air Force and many more.

Electric Vehicle Startup Rivian Gets Big Van Order From Amazon.com

September 20, 2019 / WIL BALDWIN

DETROIT, Sept 19 (Reuters) – Electric vehicle startup Rivian Automotive LLC got a big boost from one of its investors on Thursday when Amazon.com announced it was ordering 100,000 electric delivery vans.

Before Rivian has even begun commercial production at its factory in Normal, Illinois, the Amazon order rocketed it to the forefront of electric vehicle makers.

Amazon Chief Executive Jeff Bezos said in Washington that as part of the online retailer’s plan to be carbon neutral by 2040 it would order the electric vans from Rivian, with deliveries starting in 2021. The goal is to deploy all the vehicles by 2024.

Rivian, a potential rival to Silicon Valley’s Tesla Inc, unveiled its electric R1T pickup and R1S SUV last November, but had piqued Amazon’s interest earlier. Bezos personally reached out to Rivian CEO R.J. Scaringe last summer to express interest in an investment, sources previously said.

Plymouth, Michigan-based Rivian, founded in 2009, has raised close to $1.9 billion from investors, including a $700 million February round led by Amazon.

The deal solidifies Rivian’s place among EV builders, said Sam Fiorani, a vice president with Auto Forecast Solutions. “It helps boost the image of the (Rivian) brand,” he said.

Rivian aspires to be the first to produce a mass market electric pickup. It intends to begin selling its R1T by the end of 2020, a target that has not changed with the Amazon deal in place, said Rivian spokeswoman Amy Mast said.

Traditional U.S. automakers Ford Motor Co, a Rivian investor, and General Motors Co, as well as Tesla, are pushing to develop their own electric pickups.

The Amazon vans, under the exclusive deal, will be built at Rivian’s plant, a former Mitsubishi factory in Normal, Illinois, Mast said. The first vehicles will be delivered in 2021 and 10,000 should be on the road by late 2022, she said. The vehicles will be serviced by Rivian.

Scaringe has described the Rivian vehicle’s platform as a skateboard that packages the drive units, battery pack, suspension system, brakes and cooling system all below wheel height to allow for more storage space and greater stability due to a lower center of gravity.

Amazon is looking to speed packages to shoppers’ doorsteps regardless of spikes in consumer demand or shortages of delivery personnel. Last year, Daimler AG’s Mercedes-Benz said Amazon had become the biggest customer of its Sprinter vans, securing 20,000 vehicles for delivery contractors.

Ford invested $500 million in Rivian in April with plans to use the Rivian EV platform to build a new vehicle in North America. Details of that vehicle were not disclosed. Ford is not involved in the Rivian deal, Mast said.

Cox Automotive Inc, the owner of the Autotrader online automobile market and the Kelley Blue Book car valuation service, invested $350 million in Rivian this month. The companies will explore partnerships in digital retailing, service operations and logistics.

Other backers include Saudi auto distributor Abdul Latif Jameel Co, Sumitomo Corp of Americas and Standard Chartered Bank.

Amazon’s reputation and the contract size would raise Rivian’s status with potential customers and investors, Fiorani said. It also offers the advantage of not having to chase buyers or ship vehicles all over the country.

(Reporting by Ben Klayman in Detroit; Editing by David Gregorio)

Lockheed Awarded $1.48 Billion Saudi Missile Defense Contract

July 20, 2019 / WIL BALDWIN

WASHINGTON, July 19 (Reuters) – Lockheed Martin was awarded a $1.48 billion contract to build the THAAD missile defense system for Saudi Arabia, bringing the total value of the deal to $5.36 billion, the Pentagon said on Friday.

The new contract was a modification to a previously awarded agreement to produce the Terminal High Altitude Area Defense interceptor for Saudi Arabia, the Pentagon said.

In November 2018, Saudi and U.S. officials signed letters of offer and acceptance formalizing terms for Saudi Arabia’s purchase of 44 THAAD launchers, missiles and related equipment.

In April Lockheed was awarded a $2.4 billion contract for THAAD interceptor missiles, some of which are slated to be delivered to the Kingdom of Saudi Arabia.

The latest contract is for interceptor support items.

Lockheed Martin, the biggest U.S. arms maker, builds and integrates the THAAD system, which is designed to shoot down short-, medium- and intermediate-range ballistic missiles. Raytheon, another U.S. firm, builds its advanced radar.

(Reporting by David Alexander Editing by Tom Brown)

Qatar Agrees to Buy U.S. Aircraft, Engines, Defense Equipment

July 9, 2019 / WIL BALDWIN

(Bloomberg) — Qatar has made agreements with U.S. companies to spend billions on airplanes and jet engines and to develop a petrochemical complex, the White House said on Tuesday.

At least some of the deals were previously made but were publicly touted by the Trump administration Tuesday. Among them: Qatar Airways purchasing Boeing Co. 777 freighters and large-cabin aircraft from Gulfstream Aerospace, the private jet unit of General Dynamics Corp.

“They’re investing very heavily in our country,” Trump told reporters at the White House. “They’re creating a lot of jobs. They’re buying tremendous amounts of military equipment including planes.

Qatar’s defense ministry committed to acquire Raytheon Co.’s NASM and Patriot Systems, according to the White House. In addition, a unit of Chevron Corp. entered into an agreement with Qatar Petroleum for the development, construction and operation of a petrochemicals complex in Qatar.

The agreements, whose total cost wasn’t disclosed by the White House, were announced during a visit to the White House by the emir of Qatar, Sheikh Tamim Bin Hamad Al Thani.

The deals come amid a two-year economic blockade of Qatar led by U.S. ally Saudi Arabia and supported by nations including Egypt and the United Arab Emirates. Trump initially appeared to support the Saudi move — echoing its assertions that Qatar supported terrorists — even though it put the U.S. in an awkward position because it has a major military base in Qatar.

But Qatar has looked to improve relations in the U.S., with the emir saying the country was committed to doubling the economic partnership between the two countries. Mansoor bin Ebrahim Al Mahmoud, who leads the Qatar Investment Authority, said earlier this year that the country’s sovereign wealth fund will look to increase its U.S. investment portfolio from around $30 billion to about $45 billion over the next two years.

The country has also made significant gestures toward increasing its spending on U.S. defense contractors, with the U.S. approving a large weapons systems purchase ahead of Sheikh Tamim’s last visit to the country. In 2017, the country signed a deal to spend $12 billion for the purchase of 36 F-15QA fighter jets.

And the U.S. has announced plans to expand and renovate the al-Udeid Air Base near Doha, which houses the forward headquarters of the U.S. military’s Central Command and some 10,000 American troops. During a dinner with the leaders on Monday, Trump thanked Sheikh Tamim for Qatar’s $1.8 billion investment in the project which will be used to construct housing and entertainment facilities.

Several companies have released specifics of some of the agreements that were formalized on Tuesday.

Gulfstream said its deal is for $1 billion in corporate jets that General Dynamics announced in January without giving the customer’s name. Boeing said last month it made a deal to sell five 777 freighters at a list price of $1.8 billion.

Qatar Airways plans to use General Electric Co. jet engines for Boeing 787 and 777 aircraft, according to the White House.

A Chevron statement Tuesday said the company was signing a new agreement at the White House for a previously unannounced $8 billion U.S. Gulf Coast project. The White House statement mentions only a prior deal, announced last month, in which the company would join forces with Qatar Petroleum to build a facility in Qatar.

(Story by Justin Sink and Thomas Black, Edited by Alex Wayne, Justin Blum, and Larry Liebert)

Lucid Motors Hires Former Tesla Production Executive

July 1, 2019 / WIL BALDWIN

July 1 (Reuters) – Lucid Motors said on Monday it hired Tesla Inc’s former vice president of production at its Freemont factory, Peter Hochholdinger, as vice president of manufacturing.

The Newark, California-based electric carmaker in April also named Peter Rawlinson, former chief engineer of Tesla’s Model S, as its chief executive officer.

Lucid, which has more than $1 billion investment from Saudi Arabia’s Public Investment Fund, was founded in 2007 as Atieva by Sam Weng and Bernard Tse, a former vice president of Tesla.

The company positions itself as being less of a direct competitor to Tesla than with luxury car makers such as Audi or BMW, Rawlinson had said.

Hochholdinger, a former production executive at Volkswagen AG, left Tesla last week after three years with the company. At Tesla, he was tasked with improving production for Tesla’s luxury Model S sedan and Model X sport utility vehicle as well as helping build a cost-effective manufacturing program for the Model 3 sedan.

He was the latest high-profile executive to leave Tesla in the past two years, as the automaker struggles to ramp up production of Model 3, which is seen as crucial for its long-term profitability.

Rawlinson said Hochholdinger’s experience in manufacturing would help the company in launching Lucid Air and other future models.

Tesla is expected to report its second-quarter delivery and production numbers this week.

(Reporting by Vibhuti Sharma in Bengaluru; Editing by James Emmanuel)

Saudi Arabian Airlines Close to Placing Airbus Aircraft Order

June 12, 2019 / WIL BALDWIN

PARIS (Reuters) – Saudi Arabian Airlines is close to placing a multi-billion-dollar order for aircraft at least partly involving Airbus jets, people familiar with the matter said on Wednesday.

The carrier, known as Saudia, has been negotiating with both Airbus and Boeing for wide-body jets for months and its chief executive told Air Transport World in March that a decision for planes like the Airbus A350 or Boeing 787 was expected soon.

The order for wide-body aircraft, which could also include a number of smaller A320-family narrow-body aircraft, may be announced at the Paris Airshow, the people said.

Airbus declined comment.

Saudia Arabian Airlines did not immediately respond to a request for comment.

Airbus and Boeing are battling for wide-body aircraft orders worth well over $10 billion as the clock ticks towards next week’s Paris Airshow, industry sources said on Tuesday.

(Reporting by Tim Hepher, Alexander Cornwell; Editing by Sudip Kar-Gupta)

Airbus Seeks Resolution To German Arms Export Row

May 21, 2019 / WIL BALDWIN

PARIS (Reuters) – Airbus is in discussions to try to find solutions to a row with the German government over a ban on arms exports to Saudi Arabia that threatens a border security contract, Chief Executive Guillaume Faury said on Tuesday.

The planemaker has warned of legal action against Germany after taking financial charges over the long-delayed border contract between Airbus’s defence unit and the Gulf kingdom.

“We are not yet there,” Faury told reporters when asked about possible legal action.

“We are very much impacted by the situation which is now being extended and trying to find different solutions,” Faury said, adding that Airbus had been forced into a corner by the unexpected national export embargo.

Germany acted alone with a ban in October after the murder of Saudi journalist Jamal Khashoggi in Istanbul, irritating other European arms exporters including France, where Airbus is based. The measure was extended in March.

The row comes as France and Germany study a new combat jet, in which Airbus is the industrial partner on the German side.

Faury said Airbus remained committed to the manned and unmanned system, adding it could be eventually opened to other nations including Britain “as a more united Europe”.

The arms row also coincides with a separate spat with Germany over 600 million euros of development loans for the A380 passenger jet, which Airbus has said it will stop producing.

The Berlin government said in March it was in talks with Airbus about the outstanding loans, which also feature in a separate trade dispute about mutual claims of illegal aircraft subsidies between the European Union and the United States.

Faury said Airbus “would not be where it is” without its project to build the world’s largest airliner.

Asked at a media event whether the separate disputes with Germany could be settled in a single negotiation, Faury said “We just want to execute the contracts as they are and I will not say more.”

Airbus continues to have good relations with Germany and other founder Airbus nations, Faury said at the event, taking place as Airbus celebrates its 50th anniversary as a planemaker.

(Reporting by Tim Hepher; Editing by Susan Thomas)

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