Feb
21 (Reuters) – India’s Jet Airways Ltd has approved a rescue deal by
the lenders of the carrier reeling under a net debt of 72.99 billion
rupees ($1.02 billion), but doubts linger over whether the bailout would
help it clear dues on time.
The resolution plan will make Jet’s lenders its largest shareholders and fix a near 85 billion rupee funding gap.
Jet has been steadily losing market share to its rival and low-cost carrier IndiGo, which is owned by InterGlobe Aviation Ltd.
The airline has also seen its share price suffer as it navigated through several negotiations with its lenders and shareholders.
Oct 18 – Report says Indian conglomerate Tata Group is in talks to buy stake in Jet. Jet calls report “speculative”
Oct 30 – U.S.-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways
Nov 5 – Report says Tata aims to buy the 51 percent stake in the airline owned by Naresh Goyal, and Etihad Airways’ 24 percent stake, and merge Jet with Vistara
Nov 12 – Jet posts third straight quarterly loss
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
Nov 15 – Shares surge nearly 25 percent following reports that the debt-laden airline was nearing a rescue deal with Tata Sons; another report says the Indian government asked Tata to explore buying Jet
Nov 16 – Tata Sons says discussions on Jet is preliminary and no proposal has been made
Nov 22 – Independent director Ranjan Mathai resigns, citing rising pressure from other commitments
Dec 3 – Jet says it will stop providing free meals to most domestic economy class passengers from January
Dec 5 – Jet and Etihad Airways have been holding rescue talks with Jet’s bankers, sources tell Reuters
Dec 6 – Jet tells its pilot union it will clear all salary dues by April, a source tells Reuters
Dec 14 – Goyal’s penchant for control has come up as a major obstacle as the airline tries to negotiate a rescue deal, several people who have worked closely with him or known him over the years tell Reuters
Jan 2, 2019 – The airline says it has delayed payment to a consortium of Indian banks, led by SBI; ICRA cuts rating again
Jan 10 – Jet proposes to creditors that it will catch up with debt payments in arrears by September, and from April will meet debt payments as they come due, according to a document seen by Reuters
Jan 11 – Some aircraft lessors were prompted to explore taking back aircraft from Jet, people familiar with the matter told Reuters. Etihad is not “in any position to sink new equity into Jet at this juncture”, says a person familiar with Etihad’s position.
Jan 14 – Report states Goyal is likely to step down from the board and give up majority control
Jan 16 – TV channel reports that Etihad offered to buy Jet shares at a 49 percent discount and immediately release $35 million.
Jan 17 – Top creditor SBI says Jet’s lenders are considering a plan to resolve its debt issues, amid further reports that Goyal is willing to invest 7 billion rupees in the airline and pledge all his shares but wants to retain a 25 percent stake.
Jan 24 – India capital markets regulator says it has no “view” on relaxing norms for a Jet bailout
Jan 25 – Etihad appoints Alvarez & Marsal to conduct due diligence on Jet, sources tell Reuters
Jan 30 – Jet denies its aircraft had been grounded by GE Capital Aviation Services
Feb 1 – Jet agrees to most conditions set by Etihad Airways for a lifeline, a report says
Feb 8 – Airline grounds four aircraft after failing to make payments to lessors
Feb 14 – Jet’s board approves a rescue deal which will make its lenders its largest shareholders and fix a near 85 billion rupee funding gap
Feb 15 – Jet is seeking an $840 million bailout from shareholders and a state-backed fund, Business Television India reports
Feb 21 – International lessors have grounded more Jet Airways planes prior to potentially moving them out of India, as scepticism builds whether a state-led bailout of the carrier can clear their dues on time, sources tell Reuters
($1 = 71.2325 Indian rupees)
(Compiled by Arnab Paul and Chris Thomas in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)
Bengaluru
(Reuters) – European aircraft maker Airbus deliveries of its A320neo
aircraft are back on track in India with fewer problems being seen with
the narrowbody jet’s Pratt & Whitney engines, a senior company
executive said on Wednesday.
“Pratt
has informed Airbus that engine issues have come down by a factor of
four in the last 12 months,” said Airbus’ India head Anand Stanley, on
the sidelines of the Aero India airshow in Bengaluru.
Last
month, India’s aviation safety watchdog forced airlines to make extra
checks on their Airbus A320neo aircraft fitted with Pratt & Whitney
engines, as part of new safety protocols after temporary grounding
orders affected the planes last year.
IndiGo, India’s biggest carrier by market share, and its low-cost rival GoAir, both fly the A320neos.
The
aircraft, which entered service in early 2016, boasts significant fuel
efficiency benefits, but it has been plagued by teething issues with its
engines that have forced Interglobe Aviation-owned IndiGo and Wadia
Group-owned GoAir to regularly ground a number of the planes.
This caused a backlog in deliveries of the planes by Airbus.
IndiGo
has over 60 A320neos in its fleet and is one of Airbus’ biggest global
customer with over 400 more A320neo and A321neo jets on order. GoAir has
about 30 A320neos in its fleet and over 100 more of the jets ordered.
Stanley
said that the reliability rate on A320neo engines is now 99.6 percent
and that it has retrofitted engines of about 95 percent of the A320neos
in service. It expects to finish work on the remainder in the next two
months.
(Reporting by Aditi Shah; Writing by Euan Rocha; editing by Emelia Sithole-Matarise)
TOULOUSE,
France (Reuters) – Loved by passengers, feared by accountants, the
world’s largest airliner has run out of runway after Airbus decided to
close A380 production after 12 years in service due to weak sales.
The
decision to halt production of the A380 superjumbo is the final act in
one of Europe’s greatest industrial adventures and reflects a dearth of
orders by airline bosses unwilling to back Airbus’s vision of huge jets
to combat airport congestion.
Air
traffic is growing at a near-record pace but this has mainly generated
demand for twin-engined jets nimble enough to fly directly to where
people want to travel, rather than bulky four-engined jets forcing
passengers to change at hub airports.
And
while loyal supporters like top customer Emirates say the popular
544-seat jet makes money when full, each unsold seat potentially burns a
hole in airline finances because of the fuel needed to keep the huge
double-decker structure aloft.
“It’s
an aircraft that frightens airline CFOs; the risk of failing to sell so
many seats is just too high,” said a senior aerospace industry source
familiar with the program.
Once
hailed as the industrial counterpart to Europe’s single currency, the
demise of a globally recognized European symbol coincides with growing
political strains between Britain, France, Germany and Spain where the
plane is built.
That’s
in stark contrast to the display of European unity and optimism when
the engineering behemoth was unveiled in front of European leaders under
a spectacular light show in 2005.
British
Prime Minister Tony Blair called the A380 a “symbol of economic
strength” while Spanish premier Jose Luis Rodriguez Zapatero called the
rollout “the realization of a dream”.
Passengers
marveled at the European giant with room for 70 cars on its wings,
looking rather like the hump-backed Boeing 747 but with the top section
stretching all the way to the back.
Airlines had initially rushed to place orders, expecting it to lower operating costs and boost profits as the industry crawled out of a slowdown in tourism since September 2001.
Airbus boasted it would sell 700-750 A380s, which nowadays cost $446 million at list prices, and render the 747 obsolete.
In
fact, A380 orders barely crossed the 300 threshold and the 747 has
outlived its rival, after reaching the age of 50 this week.
FALL FROM GRACE
The seeds of the A380’s fall from grace were already present behind the scenes of the 2005 launch party, insiders say.
Despite
public talk of unity, the huge task was about to expose fractures in
Franco-German co-operation that sparked an industrial meltdown. When the
delayed jet finally reached the market in 2007, the global financial
crisis was starting to bite. Scale and opulence were no longer wanted.
Sales slowed.
At
the same time, engine makers who had promised Airbus a decade of
unbeatable efficiencies with their new superjumbo engines were
fine-tuning even more efficient designs for the next generation of
dual-engined planes, competing with the A380.
Finally,
a restless Airbus board started demanding a return and stronger prices
just when the plane desperately needed an aggressive relaunch and fresh
investment, insiders said.
“It was a triple whammy,” said a person close to the debate.
As demand see-sawed, so did the plane’s marketing: starting with luxuries including showers, then vaunting its green credentials with the messianic slogan ‘Saving The Planet One A380 at a Time” before joining the race to squeeze in more people and cut costs.
Yet
despite its own deep industrial problems, Boeing was winning the
argument with its newest jet, the 787 Dreamliner. It was designed to
bypass hubs served by the A380 and open routes between secondary cities:
a strategy known as “point to point”.
Airbus fought back, arguing that travel between megacities would nonetheless dominate air transport.
But
economic growth would splinter in ways Airbus did not predict.
Intermediary cities are growing almost twice as fast as megacities,
according to a 2018 paper posted by the Organisation for Economic
Co-Operation and Development.https://bit.ly/2P28F3h
That’s a boon for twinjets like the Boeing 787 and 777 or Airbus’s own A350, which has outsold the A380 three to one.
Airbus
Chief Executive Tom Enders, who was rarely seen as an enthusiastic
backer of the A380, toyed with ending the project about two years ago
but was persuaded to give it a last chance.
But with Emirates unable to hammer out an engine deal needed to confirm its most recent A380 order, time had finally run out.
“Airbus
tends to think of it as a flagship; Enders looks at it and sees a lack
of orders,” said a person close to the German-born CEO, who steps down
in April.
Some insiders worry that Airbus will lose a valuable symbol of pride and commercial audacity when production ends in 2021.
Now,
airline bosses are seeking assurances that Airbus will support the A380
with spare parts for years to come. Many invested in the A380 as their
flagship while airports also spent heavily on new facilities.
Some customers like Air France and Lufthansa may not shed too many tears, analysts say.
They
too invested in the A380 but may also be relieved to see a potent
weapon removed from Gulf rivals like Emirates, whom they accuse of
flooding the market.
Emirates insists it plays fairly and has called the A380 a “passenger magnet,” misunderstood and badly marketed by rivals.
Its
chairman said on Thursday he was disappointed in the A380’s demise, but
added “we accept that this is the reality of the situation”.
-EBIT before special items(1) up 42% year-over-year to more than $1.0B on revenues of $16.2B for the year; EBIT increased 235% year-over-year to $1.0B
-2018 EBIT margin before special items(1) up 180 bps year-over-year to 6.3%; EBIT margin of 6.2%
-Full year free cash flow(1) of $182M, comprising proceeds from certain transactions, including $1.0B of cash generation in the fourth quarter; full year cash flows from operating activities of $597M
-Strong backlog growth at Business Aircraft and Transportation, with full year book-to-bill ratios(2) of 1.1 at both segments, and a consolidated backlog of $53.1B
-2019 guidance affirmed, clear path to achieve 2020 objectives
Bombardier (TSX: BBD.B) today reported its fourth quarter and full year 2018 results, highlighting solid margin growth, improved cash flows and continued progress executing its turnaround plan. The successful entry-into-service of the Global 7500 business jet in the fourth quarter also marked the completion of Bombardier’s heavy investment cycle, a key milestone in the company’s turnaround plan.
“2018 was a year of solid progress,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We continued to strengthen our business and set a strong foundation for growth. A foundation that includes a refreshed portfolio of best-in-class products, industry-leading backlogs and a more streamlined cost structure, all of which gives us a clear path to achieve our 2020 objectives.”
“As we begin the fourth year of our turnaround journey, Bombardier is a much stronger company,” continued Bellemare. “Our major program risks are retired, our heavy investment cycle is behind us and our franchises are well positioned for growth. For 2019, we are focused on flawless execution of our rail projects, the ramp-up of the Global 7500 and entry-into-service of the Global 5500 and Global 6500. We will also continue to drive financial performance through disciplined capital allocation and improved productivity and efficiency across the organization.”
Bombardier’s 2018 consolidated revenues reached $16.2 billion, reflecting 3% average year-over-year growth across Transportation, Business Aircraft and Aerostructures, excluding currency impact. Book-to-bill ratios(2) at Transportation and Business Aircraft both equaled 1.1 for the year, demonstrating strong demand for Bombardier’s products and services. Bombardier’s consolidated backlog reached $53.1 billion at the end of 2018, supporting future growth targets.
EBIT before special items continued to improve in 2018, increasing 42% year-over-year from $725 million to more than $1.0 billion, the top-end of the company’s guidance. The 6.3% EBIT margin before special items in 2018 represents a strong 330 bps increase since the start of the turnaround plan in 2015, well above the 5-6% range originally targeted. On a reported basis, EBIT increased 235% year-over-year to $1.0 billion, representing a margin of 6.2%.
Bombardier generated $1.0 billion of free cash flow in the fourth quarter of 2018. Full year free cash flow generation equaled $182 million, at the high end of the company’s revised guidance. This amount includes aggregate net proceeds of approximately $750 million from the sale of the Downsview property and the monetization of royalties associated with the previously announced CAE transaction. Cash flows from operating activities amounted to $597 million for the full year, and to $1.3 billion in the fourth quarter. Bombardier ended the year in a solid cash position, with $3.2 billion in cash and cash equivalents.
Selected results
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Business Aircraft achieved a historical milestone in December 2018 with the on plan service entry of the largest and longest range industry flagship Global 7500 aircraft. With a strong backlog and unsurpassed performance in its category, the Global 7500 is expected to be Business Aircraft’s key growth driver for years to come.
Revenues, EBIT before special items and deliveries were in line with guidance for 2018.
The segment achieved industry leading deliveries at 137 aircraft for 2018, including 42 Global, 83 Challenger and 12 Learjet.
Continued progress on the aftermarket strategy drove a 14.3% revenue increase year-over-year. Further expansion of our service network was also announced with the groundbreaking for a new centre in Miami, Florida to service U.S. and Latin American customers.
During the year, Business Aircraft unveiled the new Global 5500 and Global 6500 aircraft featuring an all-new Rolls-Royce engine and a newly optimized wing, increasing the aircraft range and fuel burn performance. With flight testing at advanced stages, these performance-leading aircraft are expected to enter into service at the end of 2019.
Commercial Aircraft
In 2018, Commercial Aircraft significantly reshaped its portfolio, focusing on the CRJ Series program and its aftermarket business, while also participating in the growth of the A220 through its partnership with Airbus:
The C Series Partnership (CSALP) with Airbus closed on July 1, 2018, bringing together two complementary product lines and the benefit of Airbus’ global reach, creating significant value potential for the newly rebranded A220.
A definitive agreement was reached with Longview Aircraft Company of Canada Limited for the sale of the Q Series aircraft program assets, including aftermarket operations and assets, for gross proceeds of approximately $300 million, on November 7, 2018. The transaction is expected to close by the second half of 2019, subject to customary closing conditions and regulatory approvals. Net proceeds for this transaction are expected at approximately $250 million net of fees, liabilities and normal closing adjustments.
Revenues and aircraft deliveries for 2018 were in line with guidance on the basis of the deconsolidation of CSALP results from Commercial Aircraft since July 1, 2018.
EBIT loss before special items(11) was $157 million reflecting for the most part losses on the C Series program in the first half of the year and the post-closing CSALP equity pickup. EBIT loss of $755 million includes a $616 million pre-tax accounting charge related to the closing of the CSALP transaction.
Commercial Aircraft continues to actively participate in the regional aircraft market with the established scope-compliant CRJ Series aircraft, with a focus on reducing costs and increasing volumes while optimizing the aftermarket for the large installed base in service around the world today. As the focus is to return the program to profitability, Bombardier also announced in 2018 it is exploring strategic options for the program.
Aerostructures and Engineering Services
Aerostructures and Engineering Services is positioned as a key supplier on early life cycle growth programs, including the new A220 and Global 7500 aircraft, expected to drive sustainable growth.
In 2018, the segment revenues grew 21% year-over-year to $2.0 billion in line with guidance.
Focused execution during the ramp-up of these programs and a one-time favorable item (approximately 50 bps) associated with the closing of the C Series Partnership have enabled to deliver 9.6% EBIT before special items, above its guidance. EBIT margin for the segment was 7.5%.
On February 6, 2019, the Corporation acquired the Global 7500 aircraft wing program operations and assets from Triumph Group Inc., for a nominal cash consideration. This transaction is expected to strengthen Bombardier’s position as a leading aerostructures manufacturer, to enable the company to leverage its extensive technical expertise to support the ramp-up of the Global 7500 aircraft, and to enhance its long-term success. Bombardier will continue to operate the production line and integrate the employees currently supporting the program at Triumph’s Red Oak, Texas facility.
On February 7, 2019, Paul Sislian was appointed President, Aerostructures and Engineering Services. Paul brings more than 20 years of aerospace and industrial experience, including serving most recently as Chief Operating Officer for Bombardier Business Aircraft.
Transportation
On February 7, 2019, Danny Di Perna was appointed President, Bombardier Transportation. Danny brings more than 30 years of industrial experience to this new role. He has a proven record of success leading complex industrial projects and organizations, driving operational efficiency and improving quality. Most recently, Danny led Bombardier’s Aerostructures and Engineering Services segment.
In 2018, Transportation recorded orders totaling $9.9 billion, fueled by a $3.3 billion order intake in the fourth quarter. Book-to-bill(2) reached 1.5 for the fourth quarter, resulting in a 1.1 ratio for the full year, continuing to position the segment for growth in revenues and profitability, supported by strong industry fundamentals.
Order intake for the year reflects project wins across geographies, with notable contract awards in Europe, led by SNCF’s repeat order in France, in Asia led by the Singapore Metro contract, and North America with Airport and Mass transit mobility solutions for Phoenix and Los Angeles.
The backlog reached $34.5 billion as at December 31, 2018. The backlog growth (excluding currency fluctuations) was supported by a stronger mix of platform projects and increasing signalling and service contract orders, consistent with Transportation’s strategy to increase speed-to-market; provide customers with end-to-end solutions; de-risk project execution while also growing margins.
Subsequent to the fourth quarter, in January 2019, Transportation was awarded a contract to supply 113 new generation passenger rail cars valued at $669 million with options for up to 886 additional cars, by the New Jersey Transit Corporation.
Financial performance for 2018 positions Transportation to reach 2019 guidance:
Revenues grew 4% year-over-year to $8.9 billion, in line with guidance, supported by a favourable currency impact in the first half of the year (2% growth excluding currency impact). Services and signalling grew to over 34% of revenues for the year, as increasing focus turns to integrated customer solutions.
EBIT before special items grew to $750 million for the year, representing an 8.4% margin (EBIT of $774 million, or 8.7% margin). Fourth quarter margins before special items were 7.7% (10.9% EBIT margin), as a result of contract estimate adjustments largely associated with a legacy project, resulting in full year margins before special items, slightly below the 8.5% guidance.
As discussed at the Company’s December 2018 Investor Day, Transportation continues to advance a number of legacy projects. The Company has plans in place and is taking actions to finalize system integration, obtain homologation and align delivery schedules with customers. Bombardier expects to substantially complete deliveries on most of these projects and significantly recover working capital through 2019.
As the portfolio continues to improve, Transportation anticipates growing EBIT margins before special items to approximately 9% for 2019, in line with guidance.
CDPQ Investment in BT Holdco
The Company also announced that Transportation’s results in 2018 did not reach the performance targets underlying Caisse de dépôt et placement du Québec’s (CDPQ) investment in BT Holdco. Accordingly, for the 12-month period starting on February 12, 2019, Bombardier’s percentage of ownership on conversion of CDPQ’s shares will decrease by 2.5%, returning to the original 70%; and the preference return entitlement rate on liquidation of its shares will increase from 7.5% to 9.5% for this period. Any dividends paid by BT Holdco to its shareholders during this period will be distributed on the basis of each shareholder’s percentage of ownership upon conversion, being 70% for Bombardier and 30% for CDPQ. These adjustments will become effective once the audited consolidated financial statements of BT Holdco are duly approved by its board of directors.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
SEATTLE (Reuters) – A top Boeing Co executive said on Wednesday market demand was strong enough to support an even higher production rate of 63 single-aisle 737 aircraft per month but such an increase depends more on suppliers being able to keep up.
The world’s largest planemaker is also looking to remove as much risk as possible from a proposed new mid-sized jet plan by focusing on batting down development costs and applying lessons learned across multiple civil and military programs, Chief Financial Officer Greg Smith told a conference.
Boeing is currently building 52 737 aircraft per month at its Seattle-area factory. Reuters reported this week that Boeing plans to speed up to 57 planes per month in June if it can smooth out supplier delays.
(Reporting by Eric M. Johnson in Seattle; Editing by Chizu Nomiyama)
Boeing announced a partnership with Aerion, a Reno, Nev.-based company pioneering next-generation supersonic aircraft.
February 05, 2019 in Technology, Innovation
Boeing announced a partnership with Aerion, a Reno, Nev.-based company pioneering next-generation supersonic aircraft.
As part of the agreement, Boeing made a significant investment in
Aerion to accelerate technology development and aircraft design, and
unlock supersonic air travel for new markets.
“Boeing is leading a mobility transformation that will safely and efficiently connect the world faster than ever before,” said Steve Nordlund, vice president and general manager of Boeing NeXt. “This is a strategic and disciplined leading-edge investment in further maturing supersonic technology. Through this partnership that combines Aerion’s supersonic expertise with Boeing’s global industrial scale and commercial aviation experience, we have the right team to build the future of sustainable supersonic flight.”
Boeing will provide engineering, manufacturing and flight test
resources, as well as strategic vertical content, to bring Aerion’s AS2
supersonic business jet to market.
The AS2 is designed to fly at speeds up to Mach 1.4 or approximately
1,000 miles (1,609 kilometers) per hour. With the ability to fly up to
70 percent faster than today’s business jets, the AS2 will save
approximately three hours on a transatlantic flight.
The aircraft is slated for first flight in 2023.
The AS2 is designed to fly at speeds up to Mach 1.4 or approximately 1,000 miles (1,609 kilometers) per hour. Aerion Corp.
The next era of air travel is just around the corner.
Delta’s newest narrowbody jet, the state-of-the-art A200-100, is just days away from entering service, with inaugural flights set to depart this Thursday, Feb. 7, from New York’s LaGuardia airport.
While in many ways the A220 represents the future – from a state-of-the-art interior to superior fuel efficiency – it also represents years of hard work on behalf of Delta employees across the airline.
Behind-the-scenes, a team of Delta employees, in partnership with Airbus, have been working together for months to prepare North America’s first A220 for service. From honing in on the aircraft’s design to proving that flight crews can safely evacuate the aircraft in 15 seconds or less – the to-do list for readying a new aircraft is long, and often unexpected.
Today, Delta is launching the “Best in Class” A220 miniseries to dive into these efforts. In this three-part series, viewers will hear from Delta people across the business who’ve played a critical role in preparing the A220 to join Delta’s fleet, while keeping customers at the forefront in each decision along the way.
In the first episode, “Coming Together,” we begin with Delta employees gearing up to sell A220 tickets for the first time. Follow along as Delta’s very first A220 goes through the assembly line, paint shop, and ultimately touches down in Delta’s hometown of Atlanta.
Stay tuned for Best in Class Episode 2: “Inside and Out.”
PARIS/DUBAI (Reuters) – Dubai’s Emirates is exploring switching some orders for the world’s largest jetliner, the Airbus A380, to the smaller A350 in a move raising new doubts about the future of Europe’s superjumbo, people familiar with the matter said.
The Gulf carrier, which has invested tens of billions of dollars in more than 100 A380s, has been struggling to finalise a deal to buy another 36 to keep assembly lines open, due to differences with engine maker Rolls-Royce.
Now, Airbus is looking closely at closing A380 factories sooner than expected as part of a reshuffle of orders, with Chief Executive Tom Enders unlikely to leave the situation unresolved when his mandate ends in April, they said.
A person familiar with the matter said Airbus was looking “extremely seriously” at setting the timetable for a shutdown but said no decision had been taken.
Airbus said in a statement after Reuters first published news of the talks that it “confirms it is in discussions with Emirates airline in relation to its A380 contract”. But it said details of negotiations were confidential.
Emirates and Rolls-Royce declined to comment.
Emirates announced the deal for up to 36 aircraft worth as much as $16 billion (£12 billion) at list prices a year ago, throwing a lifeline to the programme’s roughly 3,000 workers and securing its future for at least another decade.
The airline is an ardent supporter of the jet, which was designed with luxury features like bars and showers.
But sales of four-engined planes are tumbling as many airlines switch to smaller twin-engined jets like the A350 and Boeing 777 due to improvements in range and efficiency.
A year-long impasse between Emirates and Rolls-Royce over shortfalls in fuel savings has so far blocked the order.
Airbus is trying to broker a complex workaround which could see Emirates take smaller jets also powered by Rolls-Royce while it tries to secure homes for as many A380s as possible, with British Airways recently expressing interest.
Airbus has dangled the prospect of closing A380 production before, and industry sources say such manoeuvres can be a negotiating tactic to force the feuding parties to agree.
But time is running out for the A380 with few airlines willing to spend the sums invested by Emirates, which has made it a backbone of its global network alongside the Boeing 777.
The production line is “untenable”, a senior industry source said
A decision by Emirates to order the A350 would offer a respite for Airbus and its main engine partner Rolls-Royce after the Gulf carrier axed an order for the A380 in 2014.
Airbus and Rolls are keen to maintain a foothold with the Gulf carrier and prevent Boeing filling the gap with more of its General Electric-powered 777s.
(Reporting by Tim Hepher and Alexander Cornwell; Editing by Michel Rose and Edmund Blair)
(Reuters) – Air New Zealand expects much weaker earnings in its 2019 financial year, it said on Wednesday, citing higher costs after problems with some Rolls-Royce engines.
New Zealand’s flag carrier said it expects pretax earnings of between NZ$340 million and NZ$400 million (£178 million to £209 million) for the year to June 30, against initial guidance of NZ$425 million to NZ$525 million.
Air New Zealand is one of several Boeing 787 operators affected by maintenance issues on Rolls-Royce’s Trent 1000 engines. Problems with a deteriorating compressor in the engines had forced a number of airlines to ground flights.
Earnings will take a hit of about NZ$30 million to NZ$40 million from the resulting schedule changes, Air New Zealand said.
The carrier also said revenue growth has slowed, though lower jet fuel costs offer some relief.
“We are concerned with our latest outlook, which reflects the softer revenue growth we are seeing in the second half,” said Chief Executive Christopher Luxon, adding that the company has begun a review of its network, fleet and cost base to ensure the business is on a strong footing going forward.
The company said it will elaborate on annual guidance when it reports half-year results on Feb. 28. It expects to declare an interim dividend of 11 cents per share.
Separately, Air New Zealand said it carried 4.5 percent more passengers in December 2018 than it did a year earlier.
(Reporting by Ambar Warrick in Bengaluru; Editing by David Goodman)
Delta’s first A330-900neo left the Airbus paint shop in Toulouse, France, this weekend, sporting its signature Delta livery. Though at first glance, the aircraft might look ready for takeoff – a closer look reveals something major still missing: the plane’s engines, which will be painted separately and mounted in the coming days.
Once the finishing touches are complete, the A330-900neo will take to the skies for testing before being delivered to Delta later this year.
Delta will be the first North American operator of the A330-900neo, which will offer the latest in innovative design and technology for customers. Delta’s A330-900neo will feature all four branded seat products – Delta One suites, Delta Premium Select, Delta Comfort+ and Main Cabin – a move Delta is making across its widebody fleet to give customers greater choice than ever before.
The jet will also feature memory foam cushions throughout the aircraft and will be the first Delta widebody to feature the new wireless IFE system developed by Delta Flight Products, the airline’s wholly owned cabin interiors start up.
This aircraft is the first of 35 next-generation A330-900neos on order by Delta and is expected to begin service later in 2019.
