Tag: government (Page 22 of 22)

Embraer Signs Agreement With Air Kiribati For Up to 4 E190-E2

December 19, 2018 / WIL BALDWIN

Singapore, December 19, 2018 – Embraer has announced the signing of a contract with the Government of Kiribati, in partnership with their national airline, Air Kiribati, for two firm orders for the E190-E2 E-Jets and two purchase rights for the same model. With all purchase rights being exercised, the contract has a value of USD 243 million, based on current list prices. The order will be included in Embraer’s 2018 fourth-quarter backlog.

Scheduled for a 2019 delivery, the E190-E2 will enable the flag carrier for the Republic of Kiribati, located in the central Pacific, to fly longer domestic and international routes than it currently does with its turboprop fleet. Air Kiribati will be the launch operator for the E190-E2 in the Asia Pacific region (excluding China). This order comes after a three-week Asia Pacific tour of the ‘Shark’ livery E190-E2 in October, which included a stop in Tarawa, the capital of Kiribati. Spanning four time zones and comprised of more than 30 islands, Kiribati is the only country in the world to be in all four hemispheres.

“We warmly welcome Air Kiribati to the Embraer family and we will work closely with the airline as they transition to the E190-E2 through our extensive entry-into-service package and world-class support team in the region,” said Cesar Pereira, Asia Pacific Vice President, Embraer Commercial Aviation. “Flying in the Pacific, over large bodies of water, requires outstanding range, performance and ample cargo capacity. Air Kiribati’s selection of the E190-E2 is yet another validation of the world’s most efficient single-aisle jet design, which exceeds these requirements and will enable the airline to enhance its flight frequency and to boost its network.”

“We were impressed with what we saw when the E190-E2 visited Kiribati in October,” said Hon. Willie Tokataake, Minister for Information, Communication, Transport and Tourism Development of the Kiribati Government. “Given its impressive range, lower fuel consumption and maintenance costs and dual class configuration that brings comfort to our passengers compared to its peers, the E190-E2’s capabilities empower us to enhance connectivity within our country and beyond, taking our nation to its next phase of growth.”

With a maximum range of up to 2,850 nautical miles, the E190-E2 can operate over the vast expanse of Kiribati, including from Tarawa directly to Kiritimati (Christmas) Island, one of the most challenging routes in the Pacific. The current domestic connection from Tarawa to Kiritimati includes an international stopover in Fiji.

The E190-E2 is part of Embraer’s new generation E-Jets E2 family of aircraft, which can seat between 70 to 150 passengers. The E190-E2 specifically, can seat up to 114 passengers, and is the first member of the E-Jets E2 family of aircraft to enter into service in April 2018.

Embraer has been present in the region since the first Bandeirante was delivered in 1978 in Australia and has been providing comprehensive support and services through the years to aircraft based in Australia and in the Pacific region.

Embraer is the world’s leading manufacturer of commercial jets with up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged almost 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft.

Story and image from http://www.embraer.com

Embraer and Boeing Approved Terms of Strategic Aerospace Partnership

December 17, 2018 / WIL BALDWIN

SAO PAULO and CHICAGO, Dec. 17, 2018 /PRNewswire/ — Embraer [B3: EMBR3, NYSE: ERJ] and Boeing [NYSE: BA] have approved to the terms of a strategic partnership that would position both companies to accelerate growth in global aerospace markets.

The approved terms define the joint venture comprising the commercial aircraft and services operations of Embraer, in which Boeing will hold an 80 percent ownership stake and Embraer will hold the remaining 20 percent. The transaction remains subject to approval by the Government of Brazil, after which Embraer and Boeing intend to execute definitive transaction documents. The closing of the transaction will then be subject to shareholder and regulatory approvals and customary closing conditions.

Under the terms of the proposed partnership, Boeing will acquire an 80 percent ownership stake in the joint venture for $4.2 billion. The partnership is expected to be neutral to Boeing’s earnings per share in 2020 and accretive thereafter. Estimated annual pre-tax cost synergies of approximately $150 million are anticipated by the third year of operations.

Once the transaction has closed, the commercial aviation joint venture will be led by Brazil-based management, including a president and chief executive officer. Boeing will have operational and management control of the new company, which will report directly to Dennis Muilenburg, Boeing chairman, president and chief executive officer. Embraer will retain consent rights for certain strategic decisions, such as transfer of operations from Brazil.

“Boeing and Embraer know each other well through more than two decades of collaboration, and the respect we have for each other and the value we see in this partnership has only increased since we announced our joint efforts earlier this year,” said Dennis Muilenburg, Boeing chairman, president and chief executive officer.

“We are confident that this partnership will deliver great value to Brazil and the Brazilian aerospace industry as a whole. This alliance will strengthen both companies in the global market and is aligned with our long-term sustainable growth strategy,” said Paulo Cesar de Souza e Silva, Embraer president and chief executive officer.

The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.

The transaction is subject to approval by the Government of Brazil, ratification by the Embraer Board of Directors and its further authorization to execute the definitive transaction documents. Once the parties have executed the definitive transaction agreements, the strategic partnership will then be subject to shareholder and regulatory approvals, as well as other customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.

Forward-Looking Information Is Subject to Risk and Uncertainty
Certain statements in this release may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed terms of the transaction, the ability of the parties to satisfy the conditions to executing or closing the transaction and the timing thereof, and the benefits and synergies of the proposed transaction, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially from these forward-looking statements. As a result, these statements speak only as of the date they are made and neither party undertakes an obligation to update or revise any forward-looking statement, except as required by law. Specific factors that could cause actual results to differ materially from these forward-looking statements include the effect of global economic conditions, the ability of the parties to reach final agreement on a transaction, consummate such a transaction and realize anticipated synergies, and other important factors disclosed previously and from time to time in the filings of The Boeing Company and/or Embraer with the Securities and Exchange Commission.

Story and image from http://www.boeing.com

EasyJet Still Interested In Restructured Alitalia

October 31, 2018 / WIL BALDWIN

Oct 31 (Reuters) – Budget airline EasyJet said on Wednesday that it had submitted a revised expression of interest for a restructured Alitalia, in response to the new Italian government’s ongoing sales process.

EasyJet had said in September that it was still talking to the Italian government over Alitalia’s short-haul operations, adding that any deal needed to make commercial sense.

Alitalia, a symbol of Italy’s post-war economic boom but now struggling to compete against low-cost carriers and high speed trains, was put under special administration last year and has been looking for a buyer.

EasyJet said the content of the expression of interest was subject to confidentiality, but that the move was in line with its existing strategy for Italy.

Germany’s Lufthansa and Wizz Air had submitted expressions of interest this year for Alitalia or parts of its business, but the lengthy formation of a new anti-establishment government delayed the process.

Wizz Air did not immediately comment when asked if the company had also submitted a revised expression of interest. Lufthansa said on Tuesday that it had no interest in participating in a government-led restructuring of the Italian carrier.

Delta Air Lines declined to comment on Friday on reports that the second biggest U.S. carrier was interested in buying a stake in Alitalia.

The deadline to sell Alitalia was meant to be on Wednesday and Italy’s Deputy Prime Minister Luigi Di Maio said last week that many private investors were interested in the airline.

(Reporting by Noor Zainab Hussain in Bengaluru and additional reporting by Alistair Smout in London; Editing by Elaine Hardcastle and Jane Merriman)

Israel & Boeing Sign Reciprocal Spending Deal

October 30, 2018 / WIL BALDWIN

JERUSALEM (Reuters) – Boeing (BA.N) has agreed to spend billions of dollars in Israel over the coming decade if it wins major defense contracts, Israel’s Economy Ministry said on Tuesday.

The “reciprocal procurement” agreement calls for Boeing to collaborate with Israeli industries for at least 35 percent of the value of any transaction it signs with the Israeli government.

This could ease concerns in Israel over new requirements in a U.S. aid package that divert funds away from local industries.

Boeing is competing in Israel for a number of key Defence Ministry contracts, including the purchase of additional F-15 aircraft, fueling planes and a squadron of transport helicopters, the ministry said.

With Israel expecting to make about $10 billion of military purchases from Boeing over the next decade, the agreement with the U.S. aerospace company means $3.5 billion in new business in Israel, the ministry said in a statement.

“A reciprocal procurement agreement of this magnitude is a significant achievement that will lead to the growth of many companies in the economy, increase their activity and also their success in international markets,” said Economy Minister Eli Cohen.

Under a defense aid deal signed in 2016 by Israeli Prime Minister Benjamin Netanyahu and then U.S. President Barack Obama, the United States agreed to provide Israel with $38 billion in military assistance over 10 years.

However, one component of the deal was to phase out a special arrangement that had allowed Israel to use 26.3 percent of the U.S. aid on its own defense industry instead of on American-made weapons. All the aid will now have to be spent on U.S. equipment by 2026.

(Reporting by Ari Rabinovitch; Editing by Adrian Croft)

General Dynamics Tops Profit Estimates

October 24, 2018 / WIL BALDWIN

Oct 24 (Reuters) – U.S. aerospace and defense company General Dynamics Corp beat analysts’ estimates for quarterly profit on Wednesday, helped by higher demand for its IT services by U.S. government agencies.

The company closed its $9.7 billion purchase of IT services-heavy CSRA Inc in the middle of the year. This was the first full quarter for General Dynamics to report the results of that business as the U.S. government is in the midst of a broad modernization effort.

Revenue rose at all of the company’s businesses, with its information technology unit recording the biggest jump.

Revenue from the IT business more than doubled to $2.31 billion, as integration of the unit continued and the business won several contracts during the quarter. Major wins during the quarter for the unit included a $330 million contract from the U.S. Census Bureau and a $210 million contract from the Centers Medicare & Medicaid Services.

Profit margins at the IT services business slipped from 9.5 percent to 6.8 percent compared to the same period a year ago. Total operating margins for General Dynamics were 12.5 percent, down from 14 percent in the same period last year.

Revenue from the company’s aerospace division, which makes business jets, rose 1.8 percent. Total new Gulfstream deliveries, a key metric for investors, fell to 27 from 30 compared with the third quarter last year. But compared with the second quarter, deliveries rose by one jet and large-cabin Gulfstream deliveries rose to 21 from 18 in the second quarter.

Net earnings rose 11 percent to $851 million in the third quarter ended Sept. 30.

On an adjusted basis, the company earned $2.89 per share, beating Refinitiv estimates of $2.76.

Total revenue rose 20 percent to $9.09 billion, but fell short of estimates of $9.38 billion.

The company’s total backlog at the end of third-quarter 2018 was $69.5 billion, up 4.9 percent from second-quarter 2018. The biggest backlog contributor came from a $3.9 billion contract from the U.S. Navy for the construction of four (DDG-51) guided-missile destroyers.

(Reporting by Mike Stone in Washington and Sanjana Shivdas in Bengaluru; Editing by Shounak Dasgupta and Susan Thomas)

Tesla Secures Shanghai Site For $2 Billion China Gigafactory

October 17, 2018 / WIL BALDWIN

BEIJING (Reuters) – Tesla Inc has signed an agreement with the Shanghai government for an 860,000 square metre plot of land to build its first overseas Gigafactory, the electric carmaker said in a Chinese social media post on Wednesday.

The land agreement marks a key step towards the firm and its Chief Executive Elon Musk making cars locally in China for the fast-growing market, even as tariffs imposed by Beijing on U.S.-made goods have caused it to hike prices of its imported models.

Tesla signed a long-anticipated deal with Shanghai authorities in July to build its first factory outside the United States, which would double the size of its global manufacturing and help lower the pricetag of Tesla cars sold in the world’s largest auto market.

“Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site,” Robin Ren, Tesla’s vice president of worldwide sales, said in a statement.

Tesla did not give the price tag for the plot, but the Shanghai Bureau of Planning and Land Resources said on Wednesday that a plot of land of 864,885 square metres had been sold at auction at a price of 973 million yuan ($140.51 million).

Tesla signed a deal with Shanghai authorities in July to open a plant in the Chinese city with an annual capacity of 500,000 cars.

The factory will help tap China’s rapidly growing market for so-called new-energy vehicles (NEVs), a category comprising electric battery cars and plug-in electric hybrid vehicles, even as China’s wider car market cools.

NEV sales were up 54.8 percent in September and climbed 81.1 percent in the first nine months of this year to 721,000 vehicles, the country’s top automobile industry association said last week.

Beijing, however, is reining in subsidies for the sector, concerned about overcapacity and “blind development,” with many inside the industry expecting a shake-out to hit the wide array of smaller local electric car start-ups.

Tesla, which started hiring for the new Shanghai factory in August, previously said that it would raise capital from Asian debt markets to fund the construction, which will cost around $2 billion.

By Yilei Sun and Adam Jourdan

($1 = 6.9248 Chinese yuan renminbi)

Boeing proposes up to 90% stake in new Embraer

February 6, 2018 / WIL BALDWIN

BRASILIA (Reuters) – Boeing Co has presented a plan to Brazil’s government that would give it an 80 to 90 percent stake in a new venture encompassing Embraer SA’s commercial jet business, a Brazilian newspaper reported on Tuesday.

The plan Boeing presented to the government on Thursday would let it take over Embraer’s commercial operations via the creation of a new company, with defence operations remaining under the Brazilian planemaker’s control in order to meet government demands, Valor Economico reported, without citing a source.

Reuters previously reported on Friday that Boeing was seeking approval in Brasilia for a plan creating a new joint company excluding defence operations.

Valor reported that under the proposal Boeing would pay Embraer in cash when the commercial assets are transferred to the new company, with most of the proceeds then distributed to shareholders as dividends.

Boeing’s tie-up with Embraer, the world’s third-largest planemaker, would give it a leading share of the 70- to 130-seat market, meaning stiffer competition for Bombardier Inc and Airbus SE’s joint CSeries programme.

Embraer would retain the defence business that generates almost nothing in earnings before interest, taxes, depreciation and amortisation. Shareholders would also have 10 to 20 percent of the commercial activities transferred to the new company and be entitled to dividends.

The deal would maintain the government’s so-called golden share in Embraer, a former state enterprise, giving it veto power over certain strategic decisions, including Boeing’s current push for a tie-up.

The plan – if supported by the government and Embraer – could be presented to shareholders for approval as soon as the second quarter, the newspaper said. Further meetings between Boeing and the government will not occur until after the Carnival holiday, which ends next week, it reported.

Boeing and Embraer did not immediately respond to requests for comment.

(Reported by Jake Spring; Edited by Kirsten Donovan)