CALGARY, Dec. 30, 2019 /PRNewswire/ – Canadian Pacific (NYSE: CP) has closed the transaction related to the acquisition of the Central Maine & Quebec Railway. The acquisition of CMQ in the U.S. remains subject to Surface Transportation Board approval.
The acquisition, first announced on November 20, 2019, will provide CP customers with seamless, safe and efficient access to ports at Searsport, Maine and to Saint John, New Brunswick, via Eastern Maine Railway Company and New Brunswick Southern Railway, thereby preserving and enhancing competition.
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.
(Reuters) – The Canadian Transportation Agency said on Tuesday Onex Corp will need to amend its by-laws to meet the country’s ownership rules related to its proposed C$3.5 billion buyout deal of Canada’s second-largest carrier WestJet Airlines.
The agency has sought the amendment to Onex’s by-laws to ensure that matters related to WestJet are voted where a majority of Canadian directors are present.
WestJet said it is in the process of reviewing the determination.
Air Canada had challenged Onex Corp’s proposed acquisition of WestJet Airlines, on grounds that the deal may not meet the country’s ownership rules. (https://reut.rs/2LHqQvk)
Air Canada had argued that the likely presence of Onex co-investors such as foreign wealth funds and carriers, and “the opaque nature” of the deal to buy WestJet through company subsidiary Kestrel Bidco, will make it harder to ensure compliance with ownership laws.
Under Canada’s Transportation Act, carriers must be Canadian and controlled by Canadians in order to hold a domestic licence.
Shareholders of WestJet Airlines in July voted in favor of the Onex deal.
Under Canadian rules, foreigners cannot own more than 49% equity in a Canadian airline. The rules further restrict a foreign airline and any single foreign owner from controlling more than a quarter of voting interests in a Canadian carrier.
Onex did not immediately respond to Reuters request for comment.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber and Uttaresh.V)
MONTREAL/WINNIPEG (Reuters) – Canada’s longest railroad strike in a decade ended on Tuesday as Canadian National Railway Co reached a tentative agreement with workers, but shippers warned it could take weeks before service bounces back to normal.
Industry groups celebrated the end of the eight-day strike at the country’s biggest railroad, which had cost them sales and raised their expenses. News of the deal, which must still be ratified by union members, sent CN shares up by as much as 2%.
Thousands of unionized workers began heading back to their jobs, CN said, with operations expected to be in full swing on Wednesday. Union members should vote on the deal within eight weeks.
CN has rescinded 70 temporary layoff notices at an auto shipment terminal in Nova Scotia following the deal, another union said.
Canada relies on CN and Canadian Pacific Railway to move crops, oil, potash, coal and manufactured goods to ports and the United States.
Details of the agreement were not available but some 3,200 striking conductors and yard workers had been demanding improved working conditions, including rest breaks.
Prime Minister Justin Trudeau acknowledged CN and union officials in a tweet on Tuesday and thanked workers, industry and all Canadians for their patience.
Trudeau’s minority government had faced pressure from industry and farmers to end the strike and force workers back to their jobs.
Transport Minister Marc Garneau told reporters on Tuesday that if Ottawa had intervened with legislation, “we would not have had a solution today.”
Teamsters Canada President Francois Laporte noted the federal government “remained calm and focused.” CEO of Montreal-based CN J.J. Ruest thanked customers for their patience.
About half of Canada’s exports move by rail, according to industry data, and the strike would likely cost the Canadian economy less than C$1 billion ($750 million) and cut fourth-quarter growth by about 0.1 percentage point, Brian DePratto, a senior economist at TD, said.
PROPANE SHORTAGE TO PERSIST
The Canadian Propane Association warned severe shortages of the fuel in several eastern Canadian provinces could last weeks. “We need to get the inventory back up,” said association President Nathalie St-Pierre, noting the “crisis” was not over.
Garneau said CN will work quickly to clear the backlog, but added the process is complex and would take time.
Bob Masterson, chief executive of the Chemistry Industry Association of Canada, said some plants had slowed production during the strike.
Based on past rail disruptions, he said CN is likely to move critical commodities first, like propane for farms and homes and chlorine for drinking water, leaving other shippers to face delays.
PAIN FOR MINERS, FARMERS
Brendan Marshall, a vice president with the Mining Association of Canada, said miners faced hefty costs due to lost sales and plant disruptions. He said restoring normal operations could take a week for every day of disrupted service.
“Now we can hope that things can get back to normal in quick fashion. It’s cost a lot of money to farmers already,” said Markus Haerle, chairman of the Grain Farmers of Ontario. Wet conditions have stalled the harvest across much of Canada, including much of Haerle’s corn crop near St. Isidore, Ontario. Those crops must be dried before they can be sold, but the rail strike held up deliveries of propane, forcing farmers to use costlier alternatives.
(Reporting by Allison Lampert in Montreal and Rod Nickel in Winnipeg. Additional reporting by Kelsey Johnson in Ottawa, writing by Steve Scherer, editing by Louise Heavens, Steve Orlofsky and David Gregorio)
FILE PHOTO: Railcars stand idle at the CN railyards in Edmonton
CALGARY and NEW YORK, Nov. 20, 2019 /PRNewswire/ – Canadian Pacific (CP) and Fortress Transportation and Infrastructure Investors LLC (FTAI) announced they have entered into a definitive agreement whereby CP will acquire the Central Maine & Quebec Railway (“CMQ”).
CMQ owns 481 miles (774 kilometres) of rail lines primarily in Quebec and Maine. The end-to-end transaction will provide CP customers with seamless, safe and efficient access to ports at Searsport, Maine and to Saint John, New Brunswick, via Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR), thereby preserving and enhancing competition.
“This strategic acquisition gives CP a true coast-to-coast network across Canada and an increased presence in the eastern U.S.,” said CP President and CEO Keith Creel. “With additional port access, more dots on the map, and our proven precision scheduled railroading operating model we are confident this transaction will bring benefits to all stakeholders moving forward.”
As part of the transaction, FTAI will retain ownership of Katahdin Railcar Services (KRS), a tank car cleaning and repair facility, and the contract to operate at a 12-mile branch line at FTAI’s Long Ridge Energy Terminal in Monroe County, Ohio. FTAI intends to continue to develop and grow both the KRS and Long Ridge branch line businesses.
“We are excited about this transaction as it brings value to our shareholders, while ensuring that the CMQ continues to provide safe and reliable rail transportation options,” said Joe Adams, FTAI CEO.
CP invests in its people and its assets to ensure it can provide service safely and efficiently. CP has been the safest railway in North America for 13 consecutive years, as measured by train accident frequency and meets all regulatory requirements.
The transaction is currently expected to close at the end of 2019 and remains subject to customary closing conditions. Over the coming weeks, CP, FTAI and other stakeholders will move towards closing.
MONTREAL/WINNIPEG, Nov 19 (Reuters) – Thousands of workers at Canada’s largest railway went on strike for the first time in a decade on Tuesday, disrupting the shipping of commodities and sparking calls for Prime Minister Justin Trudeau’s Liberal government to intervene.
About 3,000 unionized workers of Canadian National Railway, including conductors and yardmen, hit picket lines after both sides failed to resolve contract issues at a time of softening demand for freight service. They continued talks on Tuesday in Montreal amid union concerns over fatigue, safety and ensuring that workers’ breaks are not reduced.
Canada, one of the world’s biggest exporters of farm products, relies on CN and Canadian Pacific Railway to move canola, wheat and other commodities over vast distances from western farms to ports. Crude oil shippers and the mining industry also depend on the railways.
The strike comes at an awkward time for Trudeau’s government, which relies on smaller parties to pass legislation and faces criticism from western provinces about its failures to get new oil pipelines built. Trudeau has said he is not reconvening Parliament until Dec. 5, and the government cannot start the process to force workers back on the job until then.
Andrew Scheer, leader of the Conservatives, the second-largest party in Parliament, and Alberta Energy Minister Sonya Savage each separately urged Trudeau on Twitter to recall Parliament immediately.
The Canadian mining industry, which accounts for more than half of annual rail freight revenues, depends on CN to transport supplies to company sites and products from their operations.
“This strike will result in a severe reduction or elimination of railway capacity and will trigger the closure of mines with concurrent layoffs of thousands of employees beginning in a matter of days,” said Pierre Gratton, president and CEO of the Mining Association of Canada.
“SCREECHING HALT”
Industry groups ranging from the Canadian Manufacturers and Exporters to propane and fertilizer groups said Ottawa needed to step in to limit damage to the economy.
The BC Council of Forest Industries, which represents the sector in British Columbia, expressed concerns about the disruptions caused by the strike for rail transport.
“Ninety percent of the forest products we produce are sent to export markets in North America and around the world,” Susan Yurkovich, the body’s president, said.
“A disruption of this critical transportation network will adversely impact BC forest companies at a time when we are already facing significant challenges and increasing competition from around the globe”, Yurkovich added.
CN and CP also collectively handle nearly all grain movement in Western Canada, the country’s crop belt, split roughly evenly between the railways.
The stoppage “has an impact before it even begins because companies pull back sales in anticipation of a strike,” said Wade Sobkowich, executive director of the Western Grain Elevator Association, whose members include Cargill Ltd, Richardson International and Viterra Inc.
CN’s shipments of hazardous goods such as crude are likely to come to a “screeching halt” even if the railroad’s management steps in to limit freight volumes, said Kent McDougall, chief commercial officer at Torq Energy, which loads crude oil in Western Canada onto trains operated by both CN and CP.
A strike may temporarily constrain CN’s volumes, but will not likely have a meaningful long-term impact on the company’s earnings, Credit Suisse analysts said in a research note on Monday, adding that Ottawa has historically been quick to intervene.
Shares of Montreal-based CN were down 1%, while the benchmark Canadian share index was up slightly.
Canadian Labour Minister Patty Hajdu and Transport Minister Marc Garneau said they are monitoring the CN strike situation closely after meeting with the two sides on Monday.
CN said in a statement that it was “disappointed” at the strike action. CN’s service in the United States will continue operating despite the strike.
The company said on Friday it would cut management and union jobs as it grapples with an economic slowdown.
Rail workers with the Teamsters held their last strike in 2009, when locomotive engineers walked off the job for five days, the union said.
(Reporting by Allison Lampert in Montreal and Rod Nickel in Winnipeg Additional reporting by Kelsey Johnson, David Ljunggren and Steve Scherer in Ottawa and Kanishka Singh in Bengaluru Editing by Chizu Nomiyama, Sandra Maler and Leslie Adler)
MONTREAL/WINNIPEG, Nov 18 (Reuters) – Canada’s Liberal government sent two ministers on Monday to meet with representatives of Canadian National Railway Ltd and its largest union, as already hard-hit shippers pleaded for government intervention to avert a strike planned for early on Tuesday.
The threatened strike by 3,000 workers with Teamsters Canada comes after CN, the country’s largest railroad operator, said on Friday it would cut management and union jobs, as it grapples with softer economic conditions.
Labor Minister Patty Hajdu and Transportation Minister Marc Garneau were to meet with representatives from CN and the union in Montreal, Hajdu’s press secretary Veronique Simard said, following a stalemate in contract talks.
CN said it believes a strike can be averted “with the assistance of federal mediators,” after Teamsters declined to submit to binding interest arbitration. “We expect talks to continue up to Nov. 19,” CN said. Teamsters and CN reached a last-minute deal in 2017 that averted a planned strike. Canada, one of the world’s biggest exporters of farm products, relies on its two main railways to move canola and wheat over the vast distances from western farms to ports. Crude oil shippers in Alberta have also used trains in the past two years to reach U.S. refineries as an alternative to congested pipelines.
Alberta wheat and barley commissions, representing farmers, urged Ottawa to intervene, as they are already facing difficult harvest conditions because of weather. “There are a lot of farmers who already have a significant amount of their income trapped under snow,” said Gary Stanford, Alberta Wheat Commission chair. “Now adding insult to injury, we’re looking at possible CN rail strike action too.”
CN was expecting slightly lower fourth-quarter crude shipments from the third quarter, officials said on an Oct. 22 conference call.
Slumping commodity prices, congested oil pipelines and a dispute with China that has hampered Canadian agriculture exports have pressured the economies of resource-rich western provinces.
Teamsters Canada spokesman Christopher Monette said the planned strike by its conductors, train personnel and yard workers comes because workers are “hitting a wall on issues related to health and safety.”
“While we continue to negotiate in good faith and in hopes of avoiding a labor dispute, we have every intention of striking at 00:01 a.m. ET tonight (0501 GMT) unless an agreement can be reached before then,” Monette said by email.
CN shares were trading down 0.5% in early afternoon Toronto trading.
(Reporting By Allison Lampert in Montreal and Rod Nickel in Winnipeg; Additional reporting by Kelsey Johnson in Ottawa; Editing by Tom Brown and Marguerita Choy)
– Features night-vision goggle compatibility, Head-Up Displays and Synthetic Vision for mission success
– Advanced human-machine interface will reduce pilot workload
– Touch-screen capabilities to increase ease of operation
DUBAI, United Arab Emirates, Nov. 16, 2019 /PRNewswire/ — Airbus’ new C295 tactical aircraft will come equipped with Collins Aerospace System’s state-of-the-art Pro Line Fusion™ flight deck, significantly advancing the capabilities of C295 operators. The selection marks the first fixed-wing search and rescue platform to include Pro Line Fusion among its standard equipment. Collins Aerospace is a unit of United Technologies Corp.
The Pro Line Fusion flight deck designed for the C295 includes key features to help operators during search and rescue, and other tactical missions, being equipped with:
Four 14.1-inch (35.8 cm) touchscreen displays to provide a more intuitive interface for pilots to interact and customize their information on the flight deck
Night-vision goggle capability to help ensure successful missions in low light conditions
Head-Up Displays that enable the pilot to keep their eyes up for enhanced situational awareness
Enhanced Vision System (EVS) sensor that allows pilots to see through low-visibility conditions
Overlaid weather radar that shows a graphical depiction of weather along the flight plan for easy viewing
Integrated Terrain Awareness and Warning System that enables high-resolution 3D obstacle depiction and enhances mission safety
Fully integrated Mission Flight Management Systems supporting Search and Rescue patterns, Computed Air Release Points and High Altitude Release Points
In addition, the flight deck was designed to meet evolving airspace and regulatory requirements, future-proofing it for years to come.
“This flight deck implementation is a great example of how Collins Aerospace is able to apply the latest commercial avionics technology and integrate it with military functions and capabilities to create the perfect fit for our customers,” said Dave Schreck, vice president and general manager for Military Avionics and Helicopters at Collins Aerospace. “Our Pro Line Fusion integrated avionics system will reduce pilot workload and increase ease of operation for all future C295 operators.”
Canada’s Royal Canadian Air Force (RCAF) will serve as the launch customer for the C295 with the first delivery expected before the end of the year.
Nov 15 (Reuters) – Canadian National Railway said on Friday it would cut management and union jobs, as the largest Canadian railroad operator grapples with an economic slowdown.
The announcement comes amid declining freight volumes as trade tensions have weighed on the North American economy.
The number of people to be laid off could rise if demand from rail customers continues to decline, the Canadian newspaper said, citing a person familiar with the matter.
Canadian National Railway spokesman said the action, which includes sending some of its employees on temporary leave, has already begun across its network.
(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Amy Caren Daniel)
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)
