Tag: A220 (Page 3 of 7)

Airbus and Government of Québec Become Sole Owners of the A220 Program

February 17, 2020 / WIL BALDWIN

Bombardier transfers its remaining interest in Airbus Canada Limited Partnership (Airbus Canada) to Airbus SE and the Government of Québec
Airbus now holds 75 percent of Airbus Canada with the Government of Québec increasing its holding to 25 percent for no cash consideration
Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Québec
Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada
Over 3,300 Airbus jobs secured in Québec

Amsterdam / Montreal – Airbus SE (EADSY), the Government of Québec and Bombardier Inc. (BBD-B.TO) have agreed upon a new ownership structure for the A220 program, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately.

This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 – three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.

This new agreement underlines the commitment of Airbus and the Government of Québec to the A220 programme during this phase of continuous ramp-up and increasing customer demand. Since Airbus took majority ownership of the A220 programme on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.

“This agreement with Bombardier and the Government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore it extends our trustful partnership with the Government of Québec. This is good news for our customers and employees as well as for the Québec and Canadian aerospace industry,” said Airbus Chief Executive Officer Guillaume Faury. “I would like to sincerely thank Bombardier for the strong collaboration during our partnership. We are committed to this fantastic aircraft programme and we are aligned with the Government of Québec in our ambition to bring long-term visibility to the Québec and Canadian aerospace industry.”

“I am proud that our government was able to reach this agreement. We have succeeded in protecting paying jobs and the exceptional expertise developed in Québec, despite the major challenges we faced in this regard when we took office. We have consolidated the government’s position in the partnership, while respecting our commitment not to reinvest in the program. By opting to strengthen its presence here, Airbus has chosen to focus on our talents and our creativity. The decision of an industrial giant like Airbus to invest more in Québec will help attract other world-class prime contractors,” the Premier of Québec, François Legault, stated.

“This agreement is excellent news for Québec and its aerospace industry. The A220 partnership is now well established and will continue to grow in Québec. The agreement will allow Bombardier to improve its financial situation and Airbus to increase its presence and footprint in Québec. It’s a win–win situation for both the private partners and the industry,” pointed out Pierre Fitzgibbon, Minister of the Economy and Innovation.

With this transaction, Bombardier will receive a consideration of $591M from Airbus, net of adjustments, of which $531M was received at closing and $60M to be paid over the 2020-21 period. The agreement also provides for the cancellation of Bombardier warrants owned by Airbus, as well as releasing Bombardier of its future funding capital requirement to Airbus Canada.

“This transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aerospace,” said Alain Bellemare, President and CEO Bombardier, Inc. “We are incredibly proud of the many achievements and tremendous impact Bombardier had on the commercial aviation industry. We are equally proud of the responsible way in which we have exited commercial aerospace, preserving jobs and reinforcing the aerospace cluster in Québec and Canada. We are confident that the A220 program will enjoy a long and successful run under Airbus’ and the Government of Québec’s stewardship.”

The single aisle market is a key growth driver, representing 70 percent of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the A220 is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats).

As part of the agreement, Airbus has acquired the Airbus A220 and A330 work package production capability from Bombardier in Saint-Laurent, Québec. These production activities will be operated in the Saint Laurent site by Stelia Aéronautique Saint Laurent Inc., a newly created subsidiary of Stelia Aerospace, which is a 100 percent Airbus subsidiary.

Stelia Aéronautique Saint-Laurent will continue the production of the A220 cockpit and aft fuselage production, as well as A330 workpackages, for a transition period of approximately three years at the Saint-Laurent facility. A220 workpackages will then be transferred to the Stelia Aerospace site in Mirabel to optimize the logistical flow to the A220 Final Assembly Line also located in Mirabel. Airbus plans to offer all current Bombardier employees working on the A220 and A330 work packages at Saint-Laurent opportunities around the A220 programme’s ramp-up, ensuring know-how retention as well as business continuity and growth in Québec.

At the end of January 2020, 107 A220 aircraft were flying with seven customers on four continents. In 2019 alone, Airbus delivered 48 A220s, with the further ramp-up to be continued.

Diverted AirBaltic Flight Latest Case of A220 Engine Problems

February 12, 2020 / WIL BALDWIN

(Reuters) – An AirBaltic A220 flight diverted to France on Wednesday because of an engine issue is the fourth reported case involving the Pratt & Whitney engine powering the Airbus jet, the U.S. National Transportation Safety Board (NTSB) said.

The A220-300 flight, traveling from Riga, Latvia, to Malaga, Spain, was diverted to Bordeaux because of a technical failure in the left engine, France’s Bureau d’Enquêtes et ‘Analyses (BEA) said on Twitter. The flight landed safely.

Airbus SE and United Technologies Corp, maker of the Pratt PW1500G engines, confirmed in statements that they were aware of the flight and working “to provide assistance” as required.

The incident follows three emergency landings involving the GTF engine on Airbus’s smallest jet, the A220.

“NTSB has accepted delegation for 3 previous incidents so NTSB will also look at the most recent incident,” a spokesman for the U.S. government investigative agency said by email.

“NTSB is in the process of gathering initial data. It is still in the early stage of any investigation cannot make any conclusions at this time.”

Pratt & Whitney has said that a software update for the GTF engine on the A220 is expected in the spring, pending regulatory approval.

(Reporting by Allison Lampert Editing by Leslie Adler)

Airbus Likely to Acquire Remaining Bombardier A220 Stake

February 7, 2020 / WIL BALDWIN

MONTREAL/PARIS (Reuters) – Europe’s Airbus SE <EADSY> is likely to acquire Canadian plane and train maker Bombardier Inc’s <BBD-B.TO> remaining stake in the A220 passenger jet program, two industry sources said.

A deal for Airbus to buy the 33.58% share in the program was widely expected after Bombardier said in January it was reviewing the stake in the joint venture. Barring surprises, a deal is expected next week ahead of both companies’ earnings reports on Feb. 13, the sources added.

Airbus and Bombardier both declined to comment. The terms of a potential deal that would mark Bombardier’s exit from commercial aviation were unclear.

Bombardier, which is weighing additional asset sales, faced a cash crunch in 2015 due to its high-stakes bet on the technologically advanced narrowbody.

Bombardier shares closed up 2.8%.

Montreal-based Bombardier ceded control of the program to Airbus in 2018 for a token C$1 as part of broader efforts to improve its finances. It retained a minority stake alongside the Canadian province of Quebec.

Bombardier had warned the program would require additional cash to ramp up production, and could be subject to a writedown, as it faces higher-than-expected costs in its rail division and more than $9 billion of debt.

Since Airbus took over the program, the A220 has seen a sharp pickup in sales to 658 orders as of Jan. 31. But it has not seen the cost declines expected from Airbus applying its greater purchasing power with suppliers, one of the sources said.

A deal would leave Airbus to shoulder additional investments required by the plane program.

“Airbus did not particularly want to do this at this time, but is presented with little choice if Bombardier is pulling back,” the second source said.

Airbus, with a 50.6% stake in the program, delivered 48 A220 jets in 2019 and is ramping up production toward its maximum monthly capacity of 10 jets in Mirabel, Quebec, and four planes at a second line in Alabama by mid-decade.

Airbus Chief Commercial Officer Christian Scherer told Reuters in January the company was progressing toward its target of a double-digit percentage reduction in the A220’s production costs.

Quebec, with a 16.36% stake in the A220 program, would not invest further. Rather, it is trying to protect the program’s estimated 2,700 jobs, along with the province’s $1 billion investment in the program, Economy Minister Pierre Fitzgibbon said on Monday.

“We put $1 billion in it and that’s enough.”

(Reporting by Allison Lampert and Tim Hepher in Paris; Editing by Diane Craft, David Gregorio and Richard Chang)

Brazil Antitrust Regulator Gives Nod to Boeing-Embraer Deal

January 27, 2020 / WIL BALDWIN

The Boeing logo is displayed on a screen, at the NYSE in New York

BRASILIA (Reuters) – Brazilian antitrust regulator Cade on Monday approved Boeing Co’s <BA> purchase of Embraer SA’s <ERJ> commercial aviation division without restrictions, according to a statement on the agency’s website.

Cade’s top administrative council could still call for a reconsideration of the case, putting the matter to a vote.

The companies welcomed the move on Monday, with Boeing saying it remained confident of getting approval from the European Commission, the last hurdle to the transaction.

The European Union has set an April 30 deadline to decide on the deal.

Boeing has offered to pay $4.2 billion for 80% of Embraer’s commercial jet division, which builds passenger jets in the 70- to 150-seat segment.

That puts it in direct competition with next-generation jets designed by Bombardier Inc <BBD-B.TO> and acquired by Europe’s Airbus SE <EADSY>, which rebranded them the A220 program.

(Reporting by Ricardo Brito; additional reporting by Kanishka Singh; Writing by Jake Spring; Editing by Sandra Maler, Marguerita Choy and Aditya Soni)

E2-195 plane with Brazil’s No. 3 airline Azul SA logo is seen during a launch event in Sao Jose dos Campos

Airbus Sales Chief Says No Need to Cut Production of A330neo

January 15, 2020 / WIL BALDWIN

MONTREAL (Reuters) – Airbus <EADSY> sees enough demand for its wide-bodied A330neo passenger jet to keep production stable, Chief Commercial Officer Christian Scherer told Reuters on Wednesday.

With some airlines seen unlikely to take delivery of all the jets they have ordered, there has been speculation Airbus would have to trim production of the latest version of its most profitable long-range jet despite a recent flurry of new sales.

“Considering the demand I see on the A330neo I see no need to cut production levels,” Scherer told Reuters on the sidelines of an Air Canada <AC.TO> event in Montreal.

“Production is stable on the A330.”

Last year, Airbus secured 99 firm orders for the A330neo including 40 to an unidentified buyer in December.

Scherer said Airbus is also progressing toward reducing costs on its smallest jet, the A220. The company is targeting a double-digit percentage reduction in production costs.

(Reporting by Allison Lampert in Montreal; Editing by Matthew Lewis)

JetBlue Founder David Neeleman Selects Salt Lake City as Headquarters for New Airline

December 16, 2019 / WIL BALDWIN

America’s newest and perhaps most innovative airline does not yet have a name, or any airplanes. But it now has a headquarters.

David Neeleman’s startup will be based in Salt Lake City, where it plans to spend a capital investment of $3.2 million and create nearly 400 jobs over the next five years, according to local authorities. In return, the state offered tax rebates worth as much as about $1.1 million over five years.

“There’s a super strong technology base, and lower cost of living than California and some of the coastal areas,” Lukas Johnson, the airline’s chief commericial said in an interview. “We want to focus more on the technology aspect of the transportation side, and it makes a lot of sense. The tech sector is booming out here.”

Click the link for the full story! https://finance.yahoo.com/news/jetblue-founder-david-neeleman-selects-195511487.html

Air Canada’s First Airbus A220-300 Takes to the Skies

December 15, 2019 / WIL BALDWIN

The first A220-300 for Air Canada has successfully completed its inaugural test flight from the Mirabel A220 final assembly line in Canada. The first of 45 aircraft for Air Canada is scheduled to be delivered to the Montreal-based airline in the coming weeks.

With its first A220 commercial flight in early 2020, Canada’s flag carrier will become the first airline in Canada to operate the Canadian-designed and -built A220. It will also become the first carrier in North America to fly the A220-300 variant.

Air Canada is planning to use the A220 on various domestic routes in Canada as well as to the United States. The A220’s unequalled performance and range capability will enable the airline to serve new markets, such as Montreal to Seattle and Toronto to San Jose, connecting the carrier’s main hubs to the West Coast, as of Spring 2020.

Benefitting from the latest technologies, the A220 is the quietest, cleanest and most eco-friendly aircraft in its category. Featuring a 50% reduced noise footprint compared to previous generation aircraft, 20% lower fuel burn per seat and 50% lower NOx emissions than industry standards, the A220 is a great aircraft for neighbourhood airports.

Around 100 A220s are currently flying with six operators on routes in Asia, America, Europe and Africa, proving the great versatility of Airbus’ latest family member.

Delta Shuttle to Depart from Airline’s First New LGA Concourse Beginning November 16, 2019

November 14, 2019 / WIL BALDWIN

Following the ceremonial opening of the first concourse to comprise Delta’s state-of-the-art terminal at LaGuardia Airport last month, all Delta Shuttle flights to Boston, Chicago, and Washington, D.C., will relocate to these new gates from Terminal C starting Nov. 16, 2019.

The spacious new concourse, which houses gates 92 through 98, features floor-to-ceiling views of Citi Field and Flushing Bay and dining options from favorite New York chefs and eateries.

“Our Shuttle customers are among the very first to experience Delta’s newest facility at LaGuardia, and we’re so excited for them to enjoy all of the amenities it has to offer,” said Ginny Elliott, V.P. — Delta’s LGA Operations. “Its modern design, spacious gate areas, and delicious dining offerings are sure to elevate the travel day for some of our most frequent fliers.”

Until the terminal’s centralized check-in lobby in the new headhouse opens (scheduled for early 2022), the new concourse will be accessible via a pedestrian walkway on the east side of Delta’s existing Terminal D. The security checkpoint in Terminal D is being expanded to support both concourses. Customers arriving into the new gates with checked bags will claim their bags in Terminal D baggage claim.

Volunteer wayfinders from Delta’s Peach Corps will be stationed at the airport throughout the week to assist customers.

The new concourse, a major milestone in Delta’s $4 billion redevelopment investment at LGA, opened on Oct. 29, to rave reviews and participation by Delta CEO Ed Bastian, New York Gov. Andrew Cuomo, Queens Borough President Melinda Katz, and representatives of the Port Authority of New York and New Jersey.

Shuttle customers will continue to have access to benefits including:

Check-in as close as 15 minutes prior to departure without bags or 30 minutes with checked bags
Boarding up to 5 minutes prior to departure
Consistent gates
Expedited security options via Clear and dedicated TSA PreCheck lanes
Complimentary onboard snacks and beverages

Weekday flights to Washington, D.C., operated by Delta Connection partner Republic Airline using E-170 and E-175 aircraft, will continue departing near the top of the hour beginning at 6 a.m. with 10 peak-day departures on the November schedule. Flights to Chicago, operated by Delta on mainline Boeing 717 aircraft, will continue to depart at 10 minutes past the hour beginning at 6:10 a.m. with 13 peak-day departures on the November schedule. And flights to Boston will continue departing near the top of the hour beginning at 6 a.m. with 17 peak-day departures on the November schedule. Boston flights are operated by a mix of Delta mainline B717 and A220 aircraft and Delta Connection partner Republic Airline using E-170 and E-175 aircraft.

Airbus Says Could Stretch A220 Airliner

November 12, 2019 / WIL BALDWIN

FILE PHOTO: A model of the Airbus A220-300 aircraft is seen at a media event at Indira Gandhi International Airport in New Delhi

OTTAWA (Reuters) – Airbus SE’s <EADSY> Canadian-designed A220 narrowbody jet has the potential to be stretched to carry more passengers but the company has no current plans to do so, a top executive said on Tuesday.

Air France KLM SA <AFLYY>, which has a firm order for 60 A220 jets, has expressed interest in a larger variant of the plane. The A220-100 model can carry from 100-120 passengers while the larger A220-300 takes from 120-150.

In a presentation to investors, Air France KLM last week posted a slide referring to a larger A220-500 plane.

“It’s no secret that the aircraft has potential to be stretched, potential to grow,” said Philippe Balducchi, head of an Airbus-led venture which took over production of the airliner in July 2018.

Airbus’ first responsibility was to make sure the two existing planes become established in the marketplace, he told Reuters on the sidelines of an aviation conference. After that the firm would decide how to develop its planes.

“Will (there) be an A220-500 or not? I cannot tell you that today. It’s definitely not my priority but there is the potential – we will see,” said Balducchi.

Montreal-based Bombardier <BDRBF> originally drew up designs for the airliner some 15 years ago but sold Airbus a 50.01 percent stake for a token fee of one Canadian dollar in 2018 after sluggish sales and low production rates pushed the program well over budget.

Balducchi sidestepped questions as to whether Airbus would buy Bombardier’s 33.58% minority stake, saying that was a decision for shareholders.

“I think Airbus is comfortable with the situation today,” said Balducchi.

Under the terms of the 2018 deal, Bombardier could oblige Airbus to acquire its stake in the program in 2026 for market value. Airbus could also oblige Bombardier to sell the stake.

Bombardier Chief Executive Alain Bellemare recently said the company is “looking at all options” regarding its stake, while specifying that such a decision “is not for today.”

The Canadian province of Quebec continues to hold a 16.41% stake in the program.

(Additional reporting by Allison Lampert in Montreal; Editing by Sonya Hepinstall)

Czech Airlines Orders 4 A220, Upsizes 3 A320neo to A321XLR

October 23, 2019 / WIL BALDWIN

Czech Airlines has ordered four Airbus A220-300 aircraft and opted for additional range by upsizing a previous order for three A320neo to A321XLR.

The two fuel-efficient aircraft types will complement Czech Airlines’ existing fleet of six A319 and one A330-300, and allow it to continue extending its network to reach more markets. The airline will also benefit from the commonality of Airbus Family aircraft. The A220-300 will be fitted with 149 seats, while the A321XLR will cater for top comfort in a two-class layout with 195 seats.

“The A220 and A321XLR fit well with our long-term business strategy in terms of network expansion. These aircraft will definitely give Czech Airlines a competitive advantage, and will increase the capacity of our regular flights. I believe that this step will be appreciated by our passengers, as the aircraft offer best in class comfort even during long haul flights thanks to a brand new cabin configuration,” said Petr Kudela, Chairman of the Board of Czech Airlines.

“What a winning combination for Czech Airlines! The A220 has proved to be a strong performer in Europe with its high daily utilisation being a testament to its versatility,” said Christian Scherer, Airbus Chief Commercial Officer. “The A321XLR has the longest range of our A320 Family. Passengers can now fly further without compromising on comfort, whilst Czech Airlines benefits from remarkably lower fuel consumption as it expands its network.”

The A220 is the only aircraft purpose-built for the 100-150 seat market; it delivers unbeatable fuel efficiency and wide-body passenger comfort in a single-aisle aircraft. The A220 brings together state-of-the-art aerodynamics, advanced materials and Pratt & Whitney’s latest-generation PW1500G geared turbofan engines to offer at least a 20 percent lower fuel burn per seat compared to previous generation aircraft, along with significantly lower emissions and a reduced noise footprint. The A220 offers the performance of larger single-aisle aircraft. The A220 had an order book of over 525 aircraft at the end of September 2019.

The A321XLR is the next evolutionary step from the A321LR which responds to market needs for even more range and payload, creating more value for the airlines. From 2023, it will deliver an unprecedented Xtra Long Range of up to 4,700nm – with 30 percent lower fuel burn per seat compared with previous generation competitor aircraft. To date, the A320neo Family has captured more than 6,650 orders from nearly 110 customers.

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