Tag: Shanghai (Page 2 of 4)

Emirates to Operate Limited Passenger Flights in May

May 4, 2020 / WIL BALDWIN

Emirates is set to operate limited passenger services to Frankfurt (02, 04, 06, 09, 11, 13 May), London Heathrow (03, 05, 07, 10, 12, 14 May), Manila (3, 6, 8, 10, 13, 15, 16 May), Sao Paulo (3 May), and Shanghai (2 May). The one-way special flights will facilitate travel for residents and visitors wishing to return home.

Those who wish to travel to Shanghai must contact the embassy or consulate of the People’s Republic of China in the UAE. For all other flights, passengers can book directly on emirates.com or via their travel agent.

Only citizens of the destination countries, and those who meet the entry requirements of the destination will be allowed to board. Customers will be required to follow all health and safety measures required by the UAE authorities and the country of destination.

Similar to other repatriation flights that Emirates has operated thus far, for health and safety reasons, the airline will offer a modified inflight service that reduces contact, and the risk of infection. Magazines and print reading material will not be available. Meals on-board will be served in hygienic prepacked meal boxes, offering customers sandwiches, beverages, snacks, and desserts. A selection of hot snacks will also be served on long-haul flights.

Emirates’ Lounge and Chauffeur Drive services will be temporarily unavailable during this period and in-flight Wi-Fi service is available for purchase only. On board Emirates’ flights, seats are pre-allocated where possible with vacant seats placed between individual passengers or family groups in observance of physical distancing protocols. More information is available on emirates.com.

Cabin baggage will not be accepted on these flights. Carry-on items allowed in the cabin will be limited to laptop, handbag, briefcase or baby items. All other items have to be checked in, and Emirates will add the cabin baggage allowance to customers’ check-in baggage allowance.

Passengers are required to apply social distancing guidelines during their journey and wear their own masks when at the airport and on board the aircraft. Travellers should arrive at Dubai International airport Terminal 3 for check-in, three hours before departure. Emirates’ check-in counters will only process passengers holding confirmed bookings to the above destinations.

All Emirates aircraft will go through enhanced cleaning and disinfection processes in Dubai, after each journey.

Air New Zealand Suspends 2020 Earnings Guidance

March 9, 2020 / WIL BALDWIN

Due to increased uncertainty surrounding the duration and scale of the Covid-19 outbreak, Air New Zealand has today announced that it will be withdrawing the full year 2020 earnings guidance it issued to the market on 24 February 2020 and reconfirmed at its interim results announcement on 27 February 2020.

Air New Zealand has taken numerous steps to mitigate the impact of reduced demand resulting from Covid-19, including reducing capacity on its Asia, Tasman and Domestic networks, redeploying its fuel efficient 787 Dreamliner fleet to drive operational efficiencies and using tactical pricing to stimulate demand on the impacted sectors. However, the airline now believes that the financial impact is likely to be more significant than previously estimated and with the situation evolving at such a rapid pace, the airline is not in a position to provide an earnings outlook to the market at this time. An update on earnings expectations will be provided when appropriate.

Over the course of the past week the airline has seen additional softness in demand with a decline in bookings across its network. The further spread of Covid-19 to countries outside of China, including New Zealand, has driven a downward shift in demand.

Chief Executive Officer Greg Foran says that it is increasingly clear that Covid-19 has created an unprecedented situation and it is difficult to predict future demand patterns.

“We have been continuously monitoring bookings and in recent days have seen a further decline which coincides with media coverage of the spread of Covid-19 to most countries on our network as well as here in New Zealand,” says Mr Foran.

In response the airline has implemented further capacity reductions to its network, which include extending the suspension of its Shanghai service through to the end of April, and additional consolidation of services across the Tasman, Pacific Islands and Domestic network in March and April.

As a result of these actions, Air New Zealand has reduced total capacity into Asia by 26 percent, and total overall network capacity by approximately 10 percent since the outbreak of Covid-19 started.

Like the vast majority of its industry peers, the airline is also pursuing a range of mitigations in response to the swift decline of demand. These include the deferral of non-urgent capital spend and non-critical business activity across operational and corporate functions.

Chief Executive Officer Greg Foran has voluntarily offered to reduce his base pay of $1.65 million by approximately 15% ($250,000) with the support of the Board, and Air New Zealand’s Executive team will extend their salary freeze that has been in place since May 2019. On top of this, the airline has implemented a hiring freeze for all roles that are non-critical and will offer operational staff the option to take unpaid leave in addition to managing annual leave balances.

“Air New Zealand is a strong and resilient business operated by a world-class team with deep experience having navigated prior shocks to our business and industry. While we have already made swift adjustments to our operations, we are prepared to take further actions to address the ongoing demand impact of Covid-19,” says Mr Foran.

Summary of Air New Zealand’s response since the Covid-19 outbreak

Overall capacity reductions of approximately 10% across the network, including:
– Asia capacity reduction of 26% through June, including extension of Shanghai route suspension through April
– Tasman capacity reductions of 7% through June
– Pacific Islands capacity reductions of 6% through June
– Reductions across the Domestic network of approximately 4%, with a 10% to 15% reduction in March and April
Various labour initiatives including a voluntary reduction in CEO pay, a hiring freeze for all non-critical roles and voluntary unpaid leave for operational staff
Deferral of non-urgent capital spend and any non-critical business activity

HNA Group Rises After Company Asks Chinese Government for Help

March 1, 2020 / WIL BALDWIN

BEIJING/SHANGHAI, March 2 (Reuters) – Shares in HNA Group-controlled companies rose on Monday after the Chinese aviation and tourism conglomerate said it had asked the government to help it resolve liquidity risk caused by the coronavirus outbreak which has put heavy pressure on the airline industry.

HNA directly owns or holds stakes in a number of local Chinese carriers, which have suffered in recent weeks from widespread flight cancellations and plummeting demand.

Hainan Airlines Holding Co Ltd, the flagship of HNA Group Co Ltd, rose by over 3% by 0400 GMT, while HNA Technology Investments Holdings Ltd surged nearly 40%.

Other units such as HNA Investment Group Co Ltd and HNA Technology Co Ltd also saw their prices climb.

HNA Group said on Saturday it had asked the Hainan provincial government to lead a working group as it was not able to deal with the liquidity risk itself.

The group had acknowledged liquidity issues before the coronavirus outbreak started. In December, Chairman Chen Feng said HNA had faced cash flow shortage that forced it to delay salary payments.

Its Saturday announcement has driven heavy discussion in China on whether there will be a carving up of its assets.

Two weeks ago, HNA-related shares likewise rose on a media report that said China’s government planned to take over the debt-laden conglomerate.

“The implementation of a government acquisition would be challenging as HNA’s structure is complex,” Warut Promboon, head of credit research at Bondcritic, said on Monday. “Overall, it is credit positive. HNA has grown too fast and is too big that it needs to be broken down. The restructuring will be best under the state support.”

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)

EVA Air to Cut Down Cross-Strait Route Network to 5 Destinations in China

February 8, 2020 / WIL BALDWIN

Starting from February 10th to April 29th, EVA will cut down its cross-strait route network to five destinations in China in compliance with Taiwan government’s epidemic prevention policy. Please refer to the details.

In compliance with Taiwan government’s epidemic prevention policy, EVA Air is reducing flights to / from Mainland China. Starting from February 10th to April 29th, EVA will cut down its cross-strait route network to five destinations in China, including Beijing, Shanghai Pudong, Shanghai Hongqiao, Xiamen and Chengdu.

EVA is working on the flight cancellation for February and updating the information on its website. The schedule changes for March and April will be announced next week.

For the latest schedule update as well as related rules of ticket refund, itinerary change and service charge exemption, passengers can visit EVA’s dedicated webpage for the flights affected by the novel coronavirus outbreak:

https://www.evaair.com/en-global/emer/2019-nCoV.html

American Airlines Pilots Union Sues to Stop China Flights

January 30, 2020 / WIL BALDWIN

WASHINGTON/PARIS/SINGAPORE (Reuters) – A pilots union filed a lawsuit on Thursday seeking to immediately halt American Airlines U.S.-China service, as cabin crews worldwide voiced unease about exposure to the rapidly-spreading coronavirus which has killed more than 170 people in China.

Sri Lankan Airlines staff wear masks at Bandaranaike International Airport after Sri Lanka confirmed the first case of coronavirus in the country, in Katunayake

The Allied Pilots Association, which represents American Airlines pilots, cited “serious, and in many ways still unknown, health threats posed by the coronavirus.”

American, the largest U.S. carrier, did not immediately comment on the suit, filed in a Texas court. The Fort Worth, Texas-based airline announced on Wednesday it would next month suspend flights from Los Angeles to Beijing and Shanghai, but continue flights from Dallas.

The World Health Organization on Thursday declared the coronavirus outbreak in China a global emergency as cases spread to 18 countries.

The lawsuit came as an increasing number of airlines stopped their flights to China. Air France-KLM, for example, suspended its Beijing and Shanghai flights after cabin crews demanded an immediate halt.

Others that have dropped mainland Chinese destinations besides Wuhan, the outbreak’s center, include British Airways and Germany’s Lufthansa. Wuhan is closed to commercial air traffic.

Virgin Atlantic also said on Thursday it would suspend its daily operations to Shanghai from Sunday for two weeks because of the safety of customers and staff and a declining demand for tickets, but would continue flights to Hong Kong.

Other major carriers have kept flying to China, but protective masks and shorter layovers designed to reduce exposure have done little to reassure crews.

Thai Airways is hosing its cabins with disinfectant spray between China flights and allowing crew to wear masks and gloves.

“I don’t think it’s safe at all even with gloves and masks, because you catch it so many ways, like your eyes,” said one flight attendant, who spoke on condition of anonymity.

“My friends also feel unsafe and don’t want to fly,” she said. “When we fly, we don’t sleep a lot.”

Delta Air Lines and United Airlines are operating fewer China flights, with Delta offering food deliveries so crew can stay in their hotels.

Korean Air Lines Co Ltd and Singapore Airlines are sending additional crew to fly each plane straight back, avoiding overnight stays.

The South Korean carrier also said it was loading hazmat suits for flight attendants who might need to take care of suspected coronavirus cases in the air.

The outbreak poses the biggest epidemic threat to the airline industry since the 2003 SARS crisis, which led to a 45% plunge in passenger demand in Asia at its peak in April of that year, analysts said.

(Reporting by Laurence Frost, Aradhana Aravindan, Chayut Setboonsarng, David Shepardson and Tracy Rucinski Additional reporting by Caroline Pailliez in Paris, Josephine Mason in London, John Geddie in Singapore, Panu Wongcha-um in Bangkok, Jamie Freed in Sydney and Joyce Lee in Seoul; Writing by Jamie Freed and Tracy Rucinski; Editing by Marguerita Choy)

FILE PHOTO: An American Airlines Airbus A321 plane takes off from Los Angeles International airport

United Airlines Suspends Some Flights to China as Demand Drops Over Virus Fears

January 28, 2020 / WIL BALDWIN

CHICAGO (Reuters) – United Airlines Holdings Inc <UAL> said on Tuesday it was suspending some flights between the United States and Beijing, Hong Kong and Shanghai between Feb. 1 and Feb. 8 due to a “significant decline in demand” as the new coronavirus spreads.

“We will continue to monitor the situation as it develops and will adjust our schedule as needed,” United said in a statement.

The coronavirus that originated in Wuhan, China has killed 106 people in the Asian country and spread across the world, rattling financial markets.

United’s suspension affects a total of 24 flights.

The other two U.S. airlines that fly to China, Delta Air Lines Inc <DAL> and American Airlines Group Inc <AAL>, said they had not reduced their flights at this time but were closely monitoring the situation.

(Reporting by Tracy Rucinski; Editing by Chris Reese and Bill Berkrot)

Ford’s Vehicle Sales in China Tumble for Third Consecutive Year

January 12, 2020 / WIL BALDWIN

SHANGHAI (Reuters) – Ford Motor Co’s <F> China vehicle sales fell for a third consecutive year, by 26.1%, as it battles a prolonged overall sales decline in its second-biggest market that has hit demand for its mass-market Ford brand and sports utility vehicles.

The U.S. automaker delivered 146,473 vehicles in China in the fourth quarter, down 14.7% year-on-year, Ford said in a statement. In total, it sold 567,854 vehicles over 2019.

Ford has been trying to revive sales in China after its business began slumping in late 2017. Sales sank 37% in 2018, after a 6% decline in 2017.

Anning Chen, president and chief executive of Ford Greater China, said that while 2019 was a “challenging” year for the automaker, it saw its market share in the high-to-premium segment stabilize and its sales decline in the value segment start to narrow in the second-half of the year.

“The pressure from the external environment and downward trend of the industry volume will continue in 2020, and we will put more efforts into strengthening our product lineup with more customer-centric products and customer experiences to mitigate the external pressure and improve dealers’ profitability.”

The automaker plans to launch more than 30 new models in China over the next three years of which over a third will be electric vehicles. It has also said it would localize management teams by hiring more Chinese staff and aimed to improve relationships with joint venture partners.

New models it launched in the fourth quarter include a new Ford Escape version – for which the automaker said orders received so far have been much higher than expected – and the Lincoln Corsair, the first localized Lincoln model in China.

In China, Ford makes cars through a joint venture with Chongqing Changan Automobile Co Ltd and Jiangling Motors Corp Ltd (JMC). It has also said it would partner Zotye Automobile Co Ltd to sell lower priced cars.

Its larger U.S. rival General Motors Co <GM> last week said its sales in China fell 15% from a year earlier to 3.09 million vehicles in 2019, its second year of decline.

China’s auto market is set to contract by 2% in 2020 for the third year of decline, the China Association of Automobile Manufacturers (CAAM) forecast, due to a weaker economy and trade dispute with the United States.

Over 28 million vehicles were sold in 2018, down 3% from the prior year, while 2019 sales are likely to have declined 8% from the prior year, CAAM said.

(Reporting by Brenda Goh and Yilei Sun; Editing by Christian Schmollinger and Christopher Cushing)

A Ford model is seen during the China International Import Expo (CIIE), at the National Exhibition and Convention Center in Shanghai

China’s Sixth Prototype C919 Jet Completes First Test Flight

December 27, 2019 / WIL BALDWIN

BEIJING (Reuters) – The sixth prototype of China’s home-built C919 narrowbody passenger plane completed its first test flight on Friday, marking a milestone in the programme’s testing schedule as China races to compete with Airbus SE and Boeing Co.

The sixth prototype is the last test plane its manufacturer, the Commercial Aircraft Corp of China Ltd (COMAC), has planned for the programme and was scheduled to fly before the year-end. Currently, there are five test planes that are conducting test flights elsewhere in the country.

The maiden flight on Friday from Shanghai lasted two hours and five minutes, COMAC said in a press release, adding that the jet will be conducting more test flights with a focus on cabin, lighting and external noises.

COMAC has already started production of aircraft parts which will be used for the first batch of aircraft deliveries, it said.

The state manufacturer is aiming to obtain Chinese certification for the C919 in 2021, but the date was subject to regulatory approval and the aircraft’s safety remains a top priority, according to COMAC officials.

He Dongfeng, the Communist Party boss of COMAC, wrote in a state-owned newspaper in December that aircraft safety is key to the survival of COMAC.

Designed to compete directly with the Airbus 320 and the Boeing 737 families in the market for jets with around 150 seats, the C919 is the speartip of China’s efforts to break a powerful decades-old Western duopoly.

The Boeing 737 MAX remains globally grounded following two fatal crashes that killed a total of 346 people.

(Reporting by Stella Qiu and Brenda Goh; Editing by Muralikumar Anantharaman)

China’s Cash-Strapped HNA Secures Restructuring Deal

December 3, 2019 / WIL BALDWIN

HONG KONG, Dec 2 (Reuters) – Cash-strapped Chinese conglomerate HNA Group said on Monday it has agreed a deal to restructure its low-cost carrier West Air with a Chongqing-based asset management firm.

Chongqing Yufu Asset Management Group and its affiliates will together hold at least 70% stake in West Air, becoming the biggest shareholder, HNA said in a statement.

West Air, established in 2007, operates about 160 domestic and international routes with a fleet of 35 airplanes.

It has been directly controlled by HNA, whose affiliates also own struggling Hong Kong Airlines as well as Hainan Airlines Holding Co Ltd.

Budget carrier Hong Kong Airlines was ordered by Hong Kong’s air transport regulator on Monday to shore up its financial position by Dec. 7 or risk the suspension or loss of its licence.

Hainan Airlines, which has seen declining profits, said in a Shanghai stock exchange filing on Monday that it will seek 4 billion yuan ($568 million) in loans from eight banks led by China Development Bank.

The funds will be used to cover the costs of fuel, maintenance charges, staff salaries and operational expenses, it said in the filing.

$1 = 7.0389 Chinese yuan renminbi

Reporting by Meg Shen; Editing by Edmund Blair and Susan Fenton

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