PARIS (Reuters) – Airbus delivered 49 aircraft in July, up from 36 in June as it continues to recover from a slump in deliveries during this year’s coronavirus lockdowns, the company said on Thursday.
The aircraft were all narrow-body jets, highlighting a dearth of demand for the industry’s biggest models, which last month prompted Airbus to trim A350 production for a second time.
The month’s deliveries included 47 A320neo-family jets.
Airbus also scored its first orders in three months as it sold two A320neos to an undisclosed customer and two A321neos to Lufthansa Technik, the modification and repairs business of German carrier Lufthansa <LHA.DE>.
So far in 2020, Airbus has delivered 245 jets and sold 369, or 302 after cancellations.
Demand for aircraft has been crippled by the coronavirus crisis and its heavy impact on air travel.
Airbus is boosting deliveries on a monthly basis despite the industry’s worst crisis as it negotiates deals with airlines.
But although deliveries are rising compared to the trough seen in April, several bankers and analysts have questioned how many of the aircraft are being placed into service as airlines struggle to save cash. Some are said to go straight to storage.
Airbus has issued default notices and threatened to sue airlines that refuse to collect planes already built while showing flexibility in deferring jets not yet in the factory.
(Reporting by Tim Hepher; Editing by Keith Weir)
An Airbus A320neo aircraft is pictured during a news conference to announce a partnership between Airbus and Bombardier on the C Series aircraft programme, in Colomiers near Toulouse, France
Airline to serve San Francisco and Los Angeles daily
American Samoa weekly starting in April
Hawaiian Airlines is reducing its April flight schedule due to the COVID-19 pandemic with a commitment to continue offering its guests and cargo customers essential service within the Hawaiian Islands and between Hawai‘i and California and the U.S. territory of American Samoa.
The airline will maintain a reduced but still robust schedule of Neighbor Island flights, while bolstering all-cargo service to ensure goods continue to reach communities statewide.
“As Hawai‘i’s airline, we understand that our operation is essential to the state. We serve both guests who rely on us for important travel and the transportation of critical cargo,” said Hawaiian Airlines President and CEO Peter Ingram. “This has been the hallmark of our mission for 90 years and our dedication to our guests remains unchanged as we look to overcome this global crisis together.”
Starting Sunday, Hawaiian’s long-haul transpacific network will consist of one daily nonstop flight between Honolulu (HNL) and Los Angeles (LAX) and San Francisco (SFO), and one weekly flight connecting Hawai‘i to its Pacific island neighbor of Pago Pago, American Samoa (PPG). All routes will be operated with wide-body Airbus A330 aircraft.
The California routes present cargo opportunities to help maintain service for shippers affected by the reduction in passenger flights due to the state of Hawai‘i’s mandatory 14-day quarantine for overseas arrivals starting tomorrow in an effort to prevent the spread of COVID-19. The HNL-PPG route maintains vital service for the territory of American Samoa.
Guests traveling on Hawaiian’s Neighbor Island network will continue to enjoy convenient options throughout the day with 41 daily roundtrip flights scheduled for April. From Honolulu there will be 38 daily flights, including 13 to Maui, eight to Kona, seven to Kaua‘i, six to Hilo, and two each to Lāna‘i and Moloka‘i. From Maui there will be one roundtrip each to Hilo, Kaua‘i and Kona in addition to Honolulu service.
Hawaiian’s schedule reductions for April resulted from the state of Hawai‘i’s quarantine entry restriction and the ensuing drop off of travel to and from the islands. Hawaiian is operating its regularly scheduled long-haul flights through today before it begins suspending routes tomorrow.
Meanwhile, Hawaiian has expanded interisland cargo service to facilitate the movement of essential goods ranging from food to medical equipment and machinery.
On March 3, a fleet of all-cargo ATR-72 aircraft operated by ‘Ohana by Hawaiian began offering flights five days a week between Honolulu and Kahului (OGG) on Maui and Kona (KOA) on the western coast of the Island of Hawai‘i. The new routes add to all-cargo service launched in summer of 2018 between HNL and Līhu‘e (LIH) on Kaua‘i and Hilo (ITO) on the eastern coast of the Island of Hawai‘i.
Hawaiian also utilizes its Boeing 717 passenger fleet to carry critical, time-sensitive cargo like pharmaceuticals and Blood Bank of Hawai‘i shipments.
Hawaiian is still experiencing an unprecedented volume of calls from guests and respectfully asks that only those with immediate travel needs contact the airline for assistance. Options to reach Hawaiian’s reservations team, to make online changes to tickets, and to see a list of travel waivers are available at Hawaiian’s COVID-19 hub.
The airline also explains how it is keeping employees and guests safe by disinfecting aircraft and airport spaces, modifying boarding processes to prevent congestion at the gate, and adjusting in-flight services such as by distributing disposable sanitizing wipes.
PARIS (Reuters) – Airbus <EADSY> said in a stock market filing on Monday that customers could seek to cancel or postpone delivery of airliners and helicopters as the coronavirus crisis continues to escalate.
It issued the warning in an annual reference document ahead of its upcoming Amsterdam shareholder meeting, for which it urged participants to vote by proxy rather than attend in person due to widespread measures to slow the spread of the disease.
Airbus Chief Executive Guillaume Faury said earlier that several airlines had asked to defer deliveries, but that most were continuing to pay their deposits.
“Weaker market and economic conditions in China and their knock-on effects in other markets could result in requests by customers to postpone delivery or cancel existing orders for aircraft (including helicopters),” the filing said, though Faury said earlier there were some signs of recovery in China.
Airbus also detailed steps to improve compliance practices after paying a 3.6-billion-euro fine last month to settle a four-year multinational bribery probe.
But it warned that possible further investigations in other jurisdictions could trigger claims against it by shareholders, impact its ability to raise finance or limit its eligibility for public contracts, as well as harm future commercial sales.
Malaysian authorities last week cleared AirAsia Group <5099.KL> after Britain’s Serious Fraud Office faulted a sponsorship deal between former Airbus parent EADS and a motor racing team owned by the airline’s co-founders.
But the SFO probe, supported by Airbus’s own lawyers, caused a severe rift between AirAsia and its sole supplier, adding to doubts over whether long-haul unit AirAsiaX will take delivery of A330neo jets on order, three people close to the matter said.
AirAsia officials could not be reached for comment. Airbus declined comment.
Loss-making AirAsiaX has said only that it wants to defer delivery of A330neo jets due to the coronavirus crisis.
Deliveries of the wide-body aircraft have also been hit by the impact of U.S. tariffs on Airbus aircraft under a long-running trade dispute, as well as concerns about overcapacity.
Airbus trimmed A330 output in January from about four a month in 2019, Reuters reported earlier this month.
In Monday’s filing, Airbus said it would maintain production of the A330neo at 3.5 aircraft a month.
(Reporting by Tim Hepher; Editing by Mark Potter, William Maclean)
PARIS (Reuters) – Airbus <EADSY> posted its biggest January order haul in at least 15 years on Thursday as it booked a major leasing order that has been in the pipeline for several months, and carried out 31 aircraft deliveries.
The European planemaker said it had taken orders for 296 aircraft in January, including the recently finalised order for 102 planes from Air Lease Corp <AL> as well as 100 jets from U.S. low-cost carrier Spirit Airlines <SAVE>. After cancellations, it started the year with 274 net orders.
Cancellations included 20 single-aisle jets from Colombia’s Avianca, balanced by 20 orders for broadly similar aircraft from leasing company BOC Aviation in what some industry sources have described as a swap to ease their financing. Neither firm was available for comment.
Lufthansa <LHA.DE> canceled two A350 wide-body jets.
Rival Boeing, whose sales and deliveries have been affected by the grounding of its 737 MAX, has yet to post January data.
Airbus said on Thursday its deliveries from an overseas assembly plant in China had been halted amid the coronavirus outbreak. Airbus has joined other local companies in extending a routine shutdown planned for Chinese New Year, due to the impact of the health scare on its supply chains and logistics.
Airbus is expected to give targets next week and barring a worsening of the coronavirus crisis could shoot for record deliveries of at least 900 jets in 2020 as Boeing remains on a backfoot due to the MAX grounding, industry analysts say.
(Reporting by Tim Hepher; Editing by Alexandra Hudson)
FILE PHOTO: Logo of Airbus is pictured at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse
Organisers expect reduction in exhibitors, visitors
South Korea’s air force reviewing participation
By Jamie Freed and Allison Lampert
SYDNEY/MONTREAL, Feb 3 (Reuters) – Some aerospace companies including business jet manufacturers Textron Inc and General Dynamics Corp’s Gulfstream division said they no longer planned to attend the Singapore Airshow due to the new coronavirus epidemic.
The trade portion of Asia’s biggest airshow, held every two years, is set to begin on Feb. 11 under the shadow of the fast-spreading virus that has prompted Singapore to deny entry to any non-resident with a recent history of travel to China, where the virus originated.
The death toll from the coronavirus has risen to 361 in China, bringing the number of confirmed infections to 17,205 in the country. The flu-like virus, which can be transmitted from person to person, has spread to more than two dozen other nations and regions.
Experia Events, the organiser of the Singapore Airshow, said last week the show would continue as planned, but the government measures meant it would “undoubtedly see a reduction in terms of the number of expected exhibitors and visitors this year”.
The organiser said there would be doctors and medics on standby to attend to visitors who were feeling unwell.
In 2018, there were 54,000 trade attendees from 147 countries and 1,062 participating companies who come to network, examine products and sign deals covering commercial aviation, defence, maintenance and repair operations and business jets.
Typically, it is not a major show for commercial plane orders but talks during the show can set the stage for deals that are completed later in the year.
Boeing, Airbus and Lockheed Martin Corp , among the biggest exhibitors, said they still planned to attend the show.
Textron and Gulfstream said their decision to not attend was a precautionary measure to protect the health of employees.
Russian aerospace group Rostec plans to send a reduced delegation to the show, Russian media reported. Rostec did not respond immediately to a request for comment.
A spokesman for South Korea’s Air Force said on Monday it was reviewing whether to participate in the Singapore Airshow, but it had not made a final decision.
The deputy administrator of the Civil Aviation Administration of China, Li Jian, is no longer listed as a speaker at a pre-show leadership conference on Feb. 10.
Commercial Aircraft Corp of China (COMAC), which is developing the C919 narrowbody jet, had been due to attend the show before the travel ban was announced.
COMAC did not respond immediately to a request for comment.
(Reporting by Jamie Freed in Sydney and Allison Lampert in Montreal; additional reporting by Anshuman Daga in Singapore, Joyce Lee in Seoul and Brenda Goh in Shanghai; Editing by Himani Sarkar)
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)
Investments as airline expands global network from DFW, improves customer experience
FORT WORTH, Texas — American Airlines has announced plans to build a new, larger catering kitchen at Dallas Fort Worth International Airport (DFW). The new facility is part of American’s long-term growth strategy at its largest hub, and will allow the airline to better serve customers as it grows.
The investment reaffirms American’s commitment to grow and improve customer experience at DFW. In addition to the new kitchen, construction is also slated to begin ona a state-of-the-art aircraft parts distribution facility, which will help reduce maintenance delays by providing parts from DFW to American’s global network.
This year alone, American has expanded at DFW by adding 15 more gates and increasing the amount of flying to 900 daily departures. Additionally, the airline introduced a Flagship Lounge to serve premium customers travelling to international destinations. The growth is part of a larger strategy that will continue as American continues to invest in the operational efficiency and customer experience initiatives at DFW.
“DFW remains a great source of opportunity and growth for American,” said Cedric Rockamore, American’s Vice President of DFW of Hub Operations. “These investments will ensure we can continue to welcome the world to and through DFW for a very long time.”
Catering kitchen
American will build a new catering kitchen to support DFW’s current and future catering demands. The new facility will replace the existing catering kitchen, which was built in 1982 and is too small to support the airport’s growing operation. Construction on the new kitchen will begin in January 2020.
“In addition to more space, the new kitchen will provide updated equipment and efficiencies to improve our catering operation, which improves our reliability and provides a better experience for our customers,” Rockamore said.
The $100 million construction project will take about 18 months to complete and supports the first phase of development for DFW’s new Terminal F. This phase includes four new gates and customer areas located on the southeast corner of Terminal D and is scheduled to open in 2022.
The kitchen will continue to be staffed and operated by LSG Sky Chefs, the airport’s largest catering vendor.
Central Fulfillment Center and cargo mail facility
American plans to break ground in January 2020 on a new Central Fulfillment Center that will house aircraft parts for line maintenance support across our network. The 390,000-square-foot facility will enable the airline to fulfill request for parts up to 75% faster, minimizing potential maintenance delays. Locating this facility at DFW enhances our ability to distribute parts for overnight maintenance throughout the network.
This project will also include a facility for cargo mail, a key revenue stream and narrowbody product for American Airlines Cargo. The expanded space will allow the Cargo team to optimize fleet, network and market demands for transporting mail.
Terminal expansion
To support the demand for additional growth, DFW continues to develop new and optimize existing terminal spaces. These efforts include two new gates and customer areas at Terminal E, which American will utilize to support summer 2020 flying, and the continued development of Terminal F.
With the first phase of development for Terminal F underway, details of the additional phases will be developed as American and DFW continue to study infrastructure demands and customer needs.
PARIS, Dec 5 (Reuters) – Airbus must hand a record number of aircraft to customers in December to meet delivery goals, company data showed on Thursday, and is all but certain of winning an annual order race against Boeing.
The European planemaker has been facing production snags in its best-selling A321neo jet, due in part to the introduction of a complex new flexible cabin, but has said it is confident of meeting a goal of 860 jets in 2019, revised down from 880-890.
To reach that target it must deliver 135 jets in December, beating a previous record of 127 December deliveries by 6%.
Airbus delivered 77 aircraft in November to reach 725 for the year so far, according to Thursday’s progress report.
Airbus has a track record of achieving a late surge in deliveries, though it is also working to spread deliveries more evenly over the year in future to smooth earnings and avoid quality problems that can creep in when it is working flat out.
Whether or not it meets targets, Airbus is set to regain the crown as the world’s largest commercial plane producer this year as U.S. rival Boeing approaches nine months without deliveries of its 737 MAX, grounded after two crashes.
Boeing is expected to jump back into the lead next year as projected deliveries include 737 MAX jets parked during the grounding, while remaining ahead on larger jets, but the timing of the 737 MAX return to service depends on global regulators.
Airbus is also on course to win an annual order contest between the plane giants after booking orders for 222 aircraft in November, driven mainly by last month’s Dubai Airshow.
Emirates ordered 50 A350-900 jets at the show as part of a fleet shake-up that also saw the world’s largest wide-body operator cut a remaining order for A380s and reduce its requirement for Boeing 777X jets, while adding the Boeing 787.
Airbus sold a total of 940 jets in January-November, or 718 after cancellations, leaving it well ahead of Boeing, whose year has been derailed by the grounding of the 737 MAX. In the latest period for which data is available, Boeing sold 180 jets in the first nine months or 45 after cancellations.
The latest figures were released days after Airbus won a sale of 50 A321XLR jets to United Airlines, narrowing the potential market for a mid-market plane that Boeing has been studying, while slowing those discussions during the MAX crisis.
United also delayed delivery of 45 A350s by several years to 2027 and beyond. UK analysts Agency Partners said on Thursday that this could put pressure on A350 output in coming years.
(Reporting by Tim Hepher; Editing by Giles Elgood and Andrew Heavens)
DUBAI, Nov 22 (Reuters) – The board of Rolls-Royce must urgently address its engine performance problems, the head of Dubai’s Emirates said, as the world’s largest buyer of wide-body jets weighs up who will power its order of Boeing 787 jets.
Emirates agreed to buy its first 787 Dreamliners in a last-minute, $9 billion deal at the Dubai Airshow on Wednesday, without specifying what engine would power it, while reducing its order for the U.S. planemaker’s delayed 777X model.
The 787’s, which can take either Rolls or rival GE Aviation’s GEnx engines, will be delivered to Emirates in 2023, a year later than a tentative purchase plan outlined two years ago.
That gives Rolls-Royce more time to sort out the durability issues in its Trent 1000 engines before Emirates believes a realistic competition can be held.
“Rolls have had a number of wake up calls and they really need to sort themselves out. I think the alarm clock has gone off a number of times,” Emirates President Tim Clark said at the Dubai Airshow.
“If I were on the board, I would be looking to recognise the issues… and deal with them immediately, meaningfully, forcefully and drive change,” he told reporters.
A spokeswoman for Rolls-Royce said it was proud that Emirates had chosen to order 50 Airbus A350s, powered by Rolls’ Trent XWB, in a deal announced this week.
“We are confident in the reliability and performance of our engines, and in our commitment to meeting the high standards expected by our customers,” the spokeswoman said.
“(Emirates) is one of the largest operators of our Trent engines in the world, and we are committed to maintaining our strong relationship with them.”
The Rolls-powered version of the 787 has been hit by repeated technical problems, leading to share price pressure and drawing criticism from airlines.
The engine maker’s chief executive Warren East said on Nov. 7 that the company would spend more on parts and replacement engines to reduce the time aircraft are grounded while turbine blades are replaced.
Clark said that the situation at Rolls was “salvageable” if board acted quickly and accepted the issues they were having.
“With the reputation that (Rolls) has for quality engineering and its excellence in the past, they must restore that as the gold standard,” he said.
He said his comments should not be read as a criticism of any individuals including East.
Clark has been a vocal critic of engine makers, saying in September he wouldn’t take new planes unless their engines were ready and said he was “a little bit irritated” by delays at Rolls and GE.
GE powers the 777X, which Emirates cut its order of on Wednesday after Boeing pushed back its entry into service, partly due to issues with its engines.
Clark said engine makers should only offer technology that was mature enough to work reliably in the demanding conditions of the Gulf, adding: “Don’t use (airlines) as guinea pigs”.
(Reporting by Tim Hepher, writing by Alistair Smout, Editing by Louise Heavens)
Boeing 787 Dreamliner performs air display during the second day of Dubai Air Show in Dubai
DUBAI (Reuters) – After insisting for 15 years that the superjumbo is the future, Emirates airline has been forced by the demise of the A380 to embrace smaller wide-body jets, resulting in a flurry of maneuvers between planemakers at this week’s Dubai Airshow.
The 555-seat A380 is near the end of production, setting off a series of interlocking deals as top buyer Emirates reviews its fleet against the backdrop of fragmenting travel demand. Delays in the 406-seat Boeing 777X also weighed in the shake-up.
“We have to face the reality of the cancellation of the (A380) program and the effect it has on our network, which is why we conducted a root and branch (review),” Emirates President Tim Clark told reporters at the airshow.
The double-decker A380 superjumbo and the big twin-engined Boeing 777, plus mid-sized 787s and A350s, were all spread out in front of VIP chalets – the queens, bishops and knights in a game of industry chess being played out across the globe.
Big jets tend to be profitable especially when full.
Periodically, the industry designs smaller planes that match both the range and efficiency of larger ones, allowing smaller pieces on the industry chess board to topple larger ones.
While reducing its remaining orders for A380s, Emirates placed an expanded order at the show for 50 Airbus A350s but shelved earlier plans to order the 330-seat A330neo, an upgrade of an earlier model.
It substituted part of an order for delayed 777X jets for 30 Boeing 787-9 Dreamliners – 10 fewer than originally planned in a tentative 2017 order – as part of a $25 billion order shake-up.
For passengers, the roughly 300-seat, lightweight mid-sized jets offer more choice and frequencies.
Many airlines say they can fly almost as profitably as the larger models but with less risk to the bottom line.
The downside? Planes fill more quickly and passengers can flee to other carriers. Airport congestion is also a concern.
Emirates insists the superhub model it pioneered – which takes advantage of Dubai’s location to capture global traffic using large aircraft – remains intact despite the new twist.
But the smaller planes allow some of its rivals to fly profitably with fewer commercial risks and this week’s deals imply Emirates no longer feels immune from such pressure.
“Given the changed environment, Emirates has been forced to adapt the tactics of some of the carriers they have been competing with,” said analyst Richard Aboulafia of Teal Group.
STALEMATE
The shift sparked frantic talks by planemakers to ensure their models were included in the new mix of Emirates’ mid-sized jets. Each suffered losses but the result was broadly a stalemate, analysts said.
Airbus suffered a setback with the loss of the A330neo at Emirates and may have to cut output, they said.
But it ensured its own A350 picked up the slack and won a ticket to any future contests to replace A380s still in service.
Boeing <BA.N> cemented a key win for the 787 after two years of uncertainty over the earlier provisional deal. But recent 777X delays opened the door to Emirates readjusting the blend in favor of the Airbus A350, at the expense of the 787.
Emirates’ decision to expand its A350 order coincided with cancellations for the same jet at Abu Dhabi’s struggling Etihad, prompting speculation of a politically balanced adjustment.
Airline officials strongly denied any link and Clark said planners had identified more room for future growth in revenues with the A350 than the A330neo, which would nonetheless remain “in the mix” for the future alongside more 777X purchases.
Analysts said the net result of reducing A380 and 777X orders and switching to smaller models was about 18,000 fewer seats on order than previously planned before the show,
which some analysts described as a response to overcapacity.
“Manufacturers have sold too many airplanes,” Adam Pilarski, senior vice-president at consultancy AVITAS, said.
While the spotlight fell on the Emirates wide-body order rejig, the Dubai show highlighted Boeing’s efforts to shore up confidence in its grounded 737 MAX with fresh sales and changes sweeping the narrow-body markets. Beefed-up single-aisle jets increasingly cover distances reserved for wide-bodies.
Sharjah’s Air Arabia <AIRA.DU> ordered 120 Airbus including 20 of the long-range 200-240-seat A321XLR. Sources say it may leapfrog northern Africa to fly non-stop as far as Casablanca, a mission currently served from neighboring Dubai by an Emirates A380.
“The single aisles are the pawns of the industry but very effective ones,” Rob Morris, head consultant at UK-based Ascend by Cirium, said.
(By Tim Hepher and Alexander Cornwell; Additional reporting by Ankit Ajmera; Editing by Susan Fenton)
Emiratis walk past an airbus A350 displayed at the Dubai Airshow on November 8, 2015. Dubai Airshow took off today to a slow start amid little expectations of major orders to match the multi-billion-dollar sales generated at the last edition of the biennial fair. AFP PHOTO/MARWAN NAAMANI (Photo by MARWAN NAAMANI / AFP)
