BEIJING/SHANGHAI, March 2 (Reuters) – Shares in HNA Group-controlled companies rose on Monday after the Chinese aviation and tourism conglomerate said it had asked the government to help it resolve liquidity risk caused by the coronavirus outbreak which has put heavy pressure on the airline industry.
HNA directly owns or holds stakes in a number of local Chinese carriers, which have suffered in recent weeks from widespread flight cancellations and plummeting demand.
Hainan Airlines Holding Co Ltd, the flagship of HNA Group Co Ltd, rose by over 3% by 0400 GMT, while HNA Technology Investments Holdings Ltd surged nearly 40%.
Other units such as HNA Investment Group Co Ltd and HNA Technology Co Ltd also saw their prices climb.
HNA Group said on Saturday it had asked the Hainan provincial government to lead a working group as it was not able to deal with the liquidity risk itself.
The group had acknowledged liquidity issues before the coronavirus outbreak started. In December, Chairman Chen Feng said HNA had faced cash flow shortage that forced it to delay salary payments.
Its Saturday announcement has driven heavy discussion in China on whether there will be a carving up of its assets.
Two weeks ago, HNA-related shares likewise rose on a media report that said China’s government planned to take over the debt-laden conglomerate.
“The implementation of a government acquisition would be challenging as HNA’s structure is complex,” Warut Promboon, head of credit research at Bondcritic, said on Monday. “Overall, it is credit positive. HNA has grown too fast and is too big that it needs to be broken down. The restructuring will be best under the state support.”
Facility employs more than 5,500 team members with 600 jobs added in 2019
American Airlines announced today it will invest $550 million at its Base Maintenance facility in Tulsa (Tech Ops – Tulsa). It is American’s largest Base Maintenance facility and is an integral part of operating the carrier’s fleet of nearly 1,000 mainline aircraft safely and reliably.
Tech Ops – Tulsa is home to more than 5,500 team members — 600 of those positions were added in 2019 — and conducts nearly half of the airline’s overall maintenance work. The new project includes construction of a new widebody-capable hangar and base support building. The investment also provides for improvements to the existing infrastructure, including roof replacements, utility and IT upgrades, and ramp repairs. This is the largest investment ever made at a maintenance location in American’s history.
This investment underscores American’s long-term commitment to the Tech Ops – Tulsa team, State of Oklahoma and City of Tulsa by making improvements to ensure success.
“The American team in Tulsa and around the world is the best in the business when it comes to operating the safest and most reliable fleet of commercial aircraft,” said American’s Chairman and CEO Doug Parker. “Tulsa has been core to American’s operation for more than 70 years, and this investment in the base, along with the new positions we added at Tech Ops – Tulsa in 2019, will ensure our customers can continue to rely on our fleet as the safest and most reliable for decades to come.”
The new 193,000-square-foot hangar will be able to hold two widebody aircraft — or up to six narrowbody aircraft — and will replace two existing hangars that can no longer fully accommodate the size of American’s current aircraft. This will allow team members to continue maintenance work on the more than 900 aircraft that visit the site annually while also adding to the widebody hangar capacity in American’s system. The 132,000-square-foot base support building will include offices for teams in administrative functions for aircraft overhaul, engineering and more.
“With this historic investment, American Airlines continues to display their commitment to Oklahoma. As one of the largest employers in our state, American Airlines plays an integral role in our economy and provides quality jobs for our citizens,” Oklahoma Governor Kevin Stitt said. “I am proud that Oklahoma is one of the top states in the nation for the aviation and aerospace industry, and I am honored to have American Airlines choose Oklahoma, once again, to grow their business.”
Oklahoma Governor Stitt, City of Tulsa Mayor G.T. Bynum and Tulsa Regional Chamber President and CEO Mike Neal joined American leadership and nearly 2,000 team members this morning at a ceremony to unveil the project.
“This investment marks the largest single capital investment in our city’s history while also reflecting the long-term commitment of American Airlines to Tulsa,” Bynum said. “As a city, we are grateful that one of the largest employers in our community is a true partner with the kind of foresight that will create more opportunity in the next era of the aerospace sector.”
The $550 million investment will take approximately seven years to complete and will involve upgrades to nearly every building. The new hangar and base support building construction is expected to begin in early 2021 and will take approximately 18 months to complete.
“If there were any doubts about American’s long-term commitment to Tulsa, this transformative investment should put them to rest once and for all,” Neal said. “Through the Chamber-led regional economic development partnership Tulsa’s Future, and in collaboration with the City of Tulsa and State of Oklahoma, we’ve been able to support American’s continued growth in northeast Oklahoma. It’s been a personal privilege to work with American’s leadership team and Tulsa-area employees for more than 14 years, and we at the Chamber look forward to further strengthening this partnership for decades to come.”
FORT WORTH, Texas — American Airlines Group Inc. (NASDAQ: AAL) today reported its fourth-quarter and full-year 2019 financial results, including these highlights:
Fourth-quarter 2019 earnings were $0.95 per diluted share. Excluding net special items1, earnings were $1.15 per diluted share, up 19% year over year.
Full-year 2019 earnings were $3.79 per diluted share. Excluding net special items2, earnings were $4.90 per diluted share, up 8% year over year.
Accrued $213 million for the company’s profit-sharing program in 2019, including $74 million in the fourth quarter.
Returned $1.3 billion to shareholders in the form of dividends and share repurchases in 2019.
“During the fourth quarter, we made important progress to address the issues that impacted our business in 2019, and, thanks to our incredible team, we ended the year with our strongest operational quarter on record,” said American Airlines Chairman and CEO Doug Parker.
“While our results for the quarter reflect this progress, we know there is more work to be done. Looking to 2020, we are focused on three key areas. First, we will continue to deliver operational excellence and build on our strong fourth-quarter results. Our team has done a tremendous job, and we will keep driving improvement in key operational metrics in the year ahead. Second, we will deliver those results while growing where we have a competitive advantage in our most profitable hubs. And third, these initiatives combined with our capital plan will enable us to drive significant free cash flow in 2020 and beyond.”
Fourth-Quarter Revenue and Expenses
Pre-tax earnings were $571 million in the fourth quarter of 2019. Pre-tax earnings excluding net special items for the fourth quarter of 2019 were $679 million, a $90 million increase from the fourth quarter of 2018, or 15.1% year-over-year increase from the same period last year.
Continued strength in passenger demand and a record passenger load factor drove a 3.4% year-over-year increase in fourth-quarter 2019 total revenue to a record $11.3 billion. Driven by a 2.4% increase in passenger load factor, passenger revenue per available seat mile (PRASM) grew 0.9% to 14.72 cents, a record for the fourth quarter. Cargo revenue was down 18.3% to $216 million due primarily to a 15.6% decline in cargo volume. Other revenue was up 5.4% to $750 million due primarily to higher loyalty revenue. Fourth-quarter total revenue per available seat mile (TRASM) increased by 0.5% compared to the fourth quarter of 2018 on a 2.9% increase in total available seat miles.
Total fourth-quarter 2019 operating expenses were $10.6 billion, up 2.1% year over year, driven primarily by higher salaries and benefits, maintenance, and regional expenses. Total fourth-quarter 2019 cost per available seat mile (CASM) was 15.06 cents, down 0.8% from fourth-quarter 2018. Excluding fuel and net special items, consolidated fourth-quarter CASM was 11.59 cents, up 2% year over year.1
2020 Priorities
In 2020, American is focused on operational excellence, efficient and profitable growth, and generating significant free cash flow.
Operational excellence: Running a reliable operation is a significant driver of customers’ likelihood to recommend and American’s goal to become customers’ airline of choice.
Efficient and profitable growth: Grow in high-revenue markets that produce at or above average unit revenues, largely due to new gates in Dallas-Fort Worth and Charlotte, North Carolina.
Generating significant free cash flow3: Use free cash flow to naturally de-lever the company’s balance sheet and return capital to American’s shareholders.
$125 Million Maintenance facility showcases commitment to Houston through new infrastructure investment to support long-term growth for Southwest
Southwest Airlines opens new hangar facility at William P. Hobby Airport in Houston
DALLAS, Jan. 8, 2020 /PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) today officially opened a new maintenance facility at William P. Hobby International Airport, highlighting the importance Houston holds for the nation’s largest domestic airline* and underscoring its commitment to Safety while investing in the Bayou City.
The 240,000 square foot maintenance complex, now the largest in the airline’s network, includes offices, training facilities, warehouse space, and a 140,000 square foot hangar. This allows for the nearly 400 Houston based Technical Operations Employees to work simultaneously on up to six 737 aircraft indoors and has space for an additional eight aircraft outside the hangar bays. It replaces Southwest’s smaller Technical Operations facility at Hobby Airport, which opened in 1988.
“This state-of-the-art hangar will support our Technical Operations Team’s unwavering commitment to Safety and maintaining our fleet to the highest standards,” said Gary Kelly, Southwest Airlines Chairman and CEO. “I’m very proud of our hundreds of Technical Operations Employees in Houston for the work they do every day to support our growing operation from Houston’s Hobby Airport, which includes almost 200 departures per day during peak seasons to nearly 70 destinations across the United States, Latin America, and the Caribbean.”
A Boeing 737 sits inside Southwest’s new hangar at William P. Hobby Airport in Houston
“We thank Southwest Airlines for its nearly 50-year partnership and commitment to the Houston community,” Mayor Sylvester Turner said. “Between the direct employment of 5,000 local residents, continued growth in flight activity, and this investment in infrastructure, the airline represents $3 billion in economic impact for Houston each year, and that’s something that makes us proud and thankful.”
“Having similar values allowed McCarthy Building Companies and Southwest Airlines to form an integrated team to address the many entities and hurdles involved with constructing such a high profile project at a major airport. This was instrumental in the success of this project and the teams’ ability to deliver it on time,” said Jim Stevenson, McCarthy’s Houston Division President. “We are proud of our partnership with Southwest and pleased to be part of this important maintenance hangar project that will have such a high impact on its operations.”
The airline is currently investing in aircraft maintenance build-outs at Baltimore/Washington International Airport and Denver International Airport, as well as an expansion of its maintenance facility at Phoenix’s Sky Harbor International Airport. Including the projects in Denver and Baltimore, the airline expects to have eight maintenance hangars throughout the United States.
Broadcast-quality photos and videos are available for download at the carrier’s online newsroom, swamedia.com/houstonhangar.
(Left to Right: Mario Diaz, Director, Houston Airport System, Houston Mayor Sylvester Turner, Gary Kelly, Southwest Airlines Chairman and CEO, Original Houston Technical Operations Employees Brad Shelton, Paul Mould, B.J. Ritter, and Landon Nitschke, Southwest Airlines SVP of Technical Operations)
Lawrence W. Kellner to Become Chairman of the Board
New Leadership to Bring Renewed Commitment to Transparency and Better Communication With Regulators and Customers in Safely Returning the 737 MAX to Service
Boeing [NYSE: BA] announced today that its Board of Directors has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020. Mr. Calhoun will remain a member of the Board. In addition, Board member Lawrence W. Kellner will become non-executive Chairman of the Board effective immediately.
The Company also announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and Board director effective immediately. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Mr. Calhoun exits his non-Boeing commitments.
The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders.
Under the Company’s new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers.
“On behalf of the entire Board of Directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture,” Mr. Kellner said. He added, “Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The Board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company.”
Mr. Calhoun said, “I strongly believe in the future of Boeing and the 737 MAX. I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation.”
The Dreamliner will open direct flights between Ulaanbaatar, Berlin, Paris and the West Coast of the U.S.
MIAT Mongolian Airlines (Mongolyn Irgenii Agaaryn Teever) will soon welcome the first Boeing 787-9 Dreamliner to its fleet, as the airline looks to connect its home base in Ulaanbaatar with major European and North American cities beginning in 2021.
The 787-9 – the longest-range version of Boeing’s Dreamliner widebody airplane – will join MIAT’s fleet via lease from Air Lease Corporation.
“Our vision is to become a globally recognized Mongolian national flag carrier, and we are making a significant step forward by adding the first 787-9 Dreamliner to our fleet,” said Battur Davaakhuu, President and CEO, MIAT Mongolian Airlines. “The Mongolian Dreamliner will fly our passengers direct and in unmatched comfort to their dream destinations. Today is a proud day for MIAT and for all Mongolians.”
The Mongolian flag carrier joins other airlines in Asia – including Hainan Airlines, All Nippon Airways and Vietnam Airlines – that operate long-distance routes using the super-efficient, long-range 787-9. The airplane can fly up to 7,635 nautical miles (14,140 km).
Los Angeles-based ALC purchased the airplane and is providing a long-term leasing agreement for its delivery to MIAT.
“ALC is honored to announce this significant lease placement with MIAT Mongolian Airlines and be the first to introduce the airline to the Dreamliner,” said Steven F. Udvar-Házy, Executive Chairman of Air Lease Corporation. “We are proud to support the national carrier as it expands its fleet with the most technologically advanced aircraft to connect Mongolia with the rest of the world.”
Since the 787’s introduction in 2011, Boeing has booked over 1,400 orders from more than 80 customers. The company will now count MIAT as its newest Dreamliner operator.
“It will be wonderful to see the 787 Dreamliner in MIAT Mongolian Airlines’ livery flying in and out of Ulaanbaatar and connecting Mongolia with key destinations across Asia and Europe. The airline has continued to build on its proud aviation history by modernizing its fleet and operations. We are honored MIAT has selected the 787 and its superior fuel efficiency and range to profitably grow their international network,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing at Boeing. “We are delighted to partner with leading lessor ALC, which has a tremendous portfolio of 787 Dreamliners and other advanced jets, to open a new chapter in MIAT’s history.”
The 787 Dreamliner – the fastest-selling widebody jet in history – allows airlines to reduce fuel use and emissions by 20 to 25 percent and serve far-away destinations. The combination of unrivaled fuel efficiency and long range has helped airlines save more than 36 billion pounds of fuel and opened more than 235 nonstop routes.
MIAT is a leading national carrier dedicated to connecting Mongolia with the rest of the world by providing air transportation services of the highest quality, reliability and efficiency. Based in Ulaanbaatar, the airline currently operates a fleet of four Next-Generation 737s, one 737 MAX and two 767 airplanes.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 150,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
CHICAGO, Dec. 5, 2019 /PRNewswire/ — United Airlines (NASDAQ: UAL) today announced that Oscar Munoz, Chief Executive Officer, will transition to the role of Executive Chairman of the Board of Directors of United Airlines Holdings, Inc. in May 2020. As CEO, Munoz has transformed United’s culture and set new standards of operational and financial performance. J. Scott Kirby, President, will succeed Munoz as Chief Executive Officer.
“With United in a stronger position than ever, now is the right time to begin the process of passing the baton to a new leader,” Munoz said. “One of my goals as CEO was to put in place a successful leadership transition for United Airlines. I brought Scott to United three years ago, and I am confident that there is no one in the world better equipped to lead United to even greater heights. It has been the honor of my career to lead the 95,000 dedicated professionals who serve United’s customers every day. I look forward to continuing to work closely with Scott in the months ahead and supporting the company’s ongoing success in my new role.”
Kirby was recruited to United Airlines by Munoz in August 2016, after a three-decade career in the commercial airline business. His appointment reflects a commitment from Munoz and the Board to preserve leadership continuity and demonstrates confidence in the airline’s strategy and current trajectory.
“When I joined United as CEO, I laid out ambitious goals to build a new spirit of United by regaining the trust of our employees and customers – and I’m proud of how far we’ve come,” Munoz said. “Along with the successful implementation of the plan our team laid out in January 2018, United’s operational and financial performance isn’t just better – it’s better than ever. By instilling a culture of ‘proof not promise,’ we have transformed United even faster than we expected and there’s an incredible sense of excitement about the future.”
Kirby, a highly-regarded industry leader, has played a pivotal role in enabling United’s cultural transformation and successfully executing the company’s strategic growth plan.
“I am honored to be named the next CEO of United and to succeed Oscar, whose leadership has been truly transformational for United Airlines,” Kirby said. “I look forward to working with Oscar, the Board, our established leadership team and every United employee as we drive forward our proven strategy and focus on being the airline customers choose to fly and return to time and again.”
Munoz will serve as Executive Chairman for a one-year term and will continue to work closely with Kirby, the Board and the United team in shaping United’s employee and customer-centric culture. He will also lead the company’s Board and continue to engage on behalf of United with a range of external stakeholders.
As part of this transition, United’s current Chairman, Jane Garvey, will retire from the Board in May 2020 after more than a decade of exceptional service, including serving as Chairman since May 2018. At the request of the Board, Garvey agreed to remain in her role for a year beyond the Board’s mandatory retirement age.
“On behalf of the Board of Directors, I cannot thank Oscar enough for his outstanding leadership and commitment to United, and we are pleased that we will continue to benefit from his expertise and experience in his role as Executive Chairman,” Garvey said. “Oscar became CEO at one of the most challenging points in United’s history, and his focus on putting customers and employees first has transformed United’s culture today and successfully positioned the company for tomorrow. One of Oscar’s greatest legacies is the best-in-class leadership team he has built, and we have full confidence that Scott is the ideal candidate to lead United into the bright future that lies ahead.”
The company also announced that Ted Philip will become Lead Independent Director following the 2020 Annual Meeting of Shareholders. Philip joined the Board in July 2016 and chairs the Nominating/Governance Committee. He also currently serves on the Board of Directors of Hasbro, Inc. and BRP Inc.
“I could not be more excited about the opportunity that we have at United over the next several years to fulfill this airline’s incredible potential,” Philip said. “I am proud to work alongside Oscar in guiding United’s Board and leadership team, and I am eager to get to work on delivering for all of our stakeholders. The entire Board and I want to thank Jane for her many contributions to United over the last decade, including her highly successful tenure as Chairman.”
All of the changes announced today will take effect following the company’s Annual Meeting of Shareholders, scheduled for May 20, 2020.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers’ best interests at the heart of its service. In addition to today’s news, United recently announced that MileagePlus miles will now never expire, giving members a lifetime to use miles on flights and experiences. Customers now have more free on board snack options as well, with a choice of Lotus Biscoff cookies, pretzels and the Stroopwafel. The airline also recently released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver – a tool dedicated to improving the experience for customers connecting from one United flight to the next – and launched PlusPoints, a new upgrade benefit for MileagePlus premier members.
FILE PHOTO: BAIC Group automobile maker at the IEEV New Energy Vehicles Exhibition in Beijing
BEIJING/FRANKFURT (Reuters) – Daimler’s <DDAIF> main Chinese joint venture partner BAIC Group has signalled its intention to increase its stake in the German luxury car manufacturer, sources briefed on the matter said, after it built up a 5% Daimler holding in July.
Officials at BAIC’s listed company, BAIC Motor Corp Ltd, said at investor conferences in mid-October that “both sides are willing to increase stakes in the other”, responding to questions about future relationship between BAIC Group and Daimler, the sources said.
Daimler said in a regulatory filing on Friday that HSBC held 5.23% in Daimler’s voting rights directly as well as through instruments such as equity swaps as of Nov 15. BAIC has used HSBC to help it build its initial 5% stake.
Sources declined to be named as they are not allowed to speak to media.
A Daimler spokesman on Monday said, that the company had received notification from HSBC that the voting stake of 5% has been exceeded.
While the spokesman would not say whether BAIC played a role in the transaction, he added that Daimler welcomed long-term shareholders such as BAIC, who support the carmaker’s strategies.
“Daimler AG appreciates BAIC as long-standing partner and long-term investor,” the spokesman said in a written statement.
“Such shareholders help us to further safeguard and strengthen the capitalization of our company,” the statement continued.
BAIC was not immediately available for comment.
Geely, Daimler’s biggest shareholder with a 9.7% stake, said: “We are a long-term investor in Daimler. We do not react spontaneously to any volatility and we support Daimler’s management and their strategy.”
BAIC (Beijing Automobile Group Co Ltd) has been Daimler’s main partner in China for years and operates Mercedes-Benz factories in Beijing through Beijing Benz Automotive.
Two months before its July stake deal was announced, sources told Reuters that BAIC wanted to invest in Daimler to secure its investment in Beijing Benz Automotive.
In March, sources told Reuters Daimler had asked Goldman Sachs <GS> to help it explore increasing its stake in BAIC’s Hong Kong-listed company.
The partners also planned to revamp manufacturing facilities to make Mercedes Benz-branded trucks via their commercial vehicle joint venture Foton Daimler Automotive (BFDA), Reuters reported in August citing a document and sources familiar with matter.
The companies also said Daimler and BAIC’s new energy vehicle unit BluePark have jointly developed a battery research lab in Beijing.
State-owned BAIC built its stake after Li Shufu, chairman of rival private automaker Zhejiang Geely Holding Group, built a 9.69% stake in Stuttgart-based Daimler in early 2018.
By using Hong Kong shell companies, derivatives, bank financing and structured share options, Li kept the plan under wraps until he was able, at a stroke, to become Daimler’s single largest shareholder.
Since the investment, Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture.
Zhejiang-based Geely owns Volvo while BAIC in addition to Daimler has a partnership with South Korea’s Hyundai Motor <HYMTF>.
Daimler said it had collaborated with BAIC in areas such as production, research and development and sales since 2003.
(Reporting by Yilei Sun and Edward Taylor; additional reporting by Arno Schuetze and Ludwig Burger; editing by Brenda Goh, Jason Neely and Louise Heavens)
China’s BAIC willing to increase Daimler holding after 5% stake buy – sources FILE PHOTO: Ola Kaellenius, Chairman of the Board of Management of Daimler AG, speaks at a media event during the Guangzhou auto show in Guangzhou
PURCHASE, N.Y., Nov. 21, 2019 (GLOBE NEWSWIRE) — Atlas Air Worldwide Holdings, Inc. (AAWW) today confirmed that its subsidiaries Atlas Air, Inc. and Southern Air, Inc. have prevailed in another legal dispute with the union that represents its pilots in ongoing negotiations, the International Brotherhood of Teamsters.
The decision by the U.S. Court of Appeals for the Second Circuit affirms a March 13, 2018, decision by the Southern District Court of New York compelling the Teamsters to arbitrate whether the merger provisions in Atlas Air and Southern Air’s collective bargaining agreements apply to the bargaining process. Today’s decision, as well as two binding decisions by arbitrators rendered in favor of both Atlas Air and Southern Air this summer, have made clear that IBT must engage in the current Atlas Air and Southern Air collective bargaining agreements’ expedited and defined process for achieving a joint collective bargaining agreement.
In a separate labor-related decision rendered in July 2019, the U.S. Court of Appeals for the District of Columbia unanimously affirmed a federal district court ruling in November 2017 that ordered the union to stop an intentional and illegal work slowdown by Atlas Air pilots in violation of the Railway Labor Act. The unanimous ruling from a three-judge panel upheld the lower-court order that blocked the union from continuing to engage in improper activities such as excessive sick calls on short notice or refusing to volunteer for open time.
“With these decisions behind us, it’s time for the union to honor its obligations under the collective bargaining agreements and these binding decisions. Specifically, the union has an obligation to produce an integrated seniority list and engage in direct bargaining for a defined and limited period of time. In ongoing negotiations, the union has yet to provide us with a comprehensive economic proposal covering pay and benefits for evaluation. We remain committed to working collaboratively with union leaders to efficiently negotiate and complete the contract,” said William J. Flynn, Chairman and Chief Executive Officer, Atlas Air Worldwide.
For more information about the contract negotiations process and updates, please visit AtlasAir5YPilots.com and follow @AtlasAir5Y on Twitter.
One of the world’s leading airlines firms up future fleet with 787-9, 777-8 and 777-9 models
Announcement includes update of Emirates’ 777X order book; and agreement for replacement parts for 777 airplanes
DUBAI, United Arab Emirates, Nov. 20, 2019 /PRNewswire/ — Boeing [BA] and Emirates announced today they have finalized a purchase agreement for 30 787-9 Dreamliner airplanes, valued at $8.8 billion according to list prices. The agreement, signed at the Dubai Airshow, culminates discussions between the two companies on the best 787 Dreamliner model to meet the requirements of one of the world’s leading airlines.
Emirates had previously signed an initial agreement for the larger 787-10 variant. In officially selecting the 787-9 today, Emirates adds a medium-sized widebody airplane to complement the airline’s larger 777 aircraft. Both airplane families lead their respective category for superior range and fuel efficiency.
HH Sheikh Ahmed bin Saeed Al Maktoum, Emirates Chairman and Chief Executive said: “I am pleased to announce a firm order for 30 Boeing Dreamliners. This is an important investment and addition to our future fleet and it reflects Emirates’ continued efforts to provide the best quality air transport services to our customers. The 787’s will complement our fleet mix by expanding our operational flexibility in terms of capacity, range and deployment. We are also pleased to reaffirm our commitment to the Boeing 777X programme and look forward to its entry into service.
Sheikh Ahmed added: “Our Boeing fleet is key to our business model to serve international demand for travel to and through our Dubai hub, as we continue to contribute to the UAE’s strategy to become a global destination for business and tourism by providing high quality air connectivity.”
As part of the agreement, Emirates will update a portion of its large order book by exercising substitution rights and converting 30 777 airplanes into 30 787-9s. With this conversion, Emirates remains the world’s biggest 777X customer with 126 airplanes on order and the largest 777 operator with 155 airplanes today.
“We are excited to finalize this important order from one of the world’s leading airlines. Our agreement solidifies Emirates’ plan to operate the 787 Dreamliner and the 777X, which make up the most efficient and most capable widebody combination in the industry,” said Boeing Commercial Airplanes President & CEO Stan Deal. “It is an honor to build on our successful partnership with Emirates and continue to sustain many jobs at Boeing and our supplier partners.”
To support Emirates’ current-generation 777 airplanes in the coming years, the companies announced that Boeing Global Services will leverage its worldwide supply chain to provide timely replacement parts, reducing maintenance times and keeping aircraft in service.
At 63 meters (206 feet), the 787-9 Dreamliner can fly 296 passengers, in a typical two-class configuration, up to 7,530 nautical miles (13,950 kilometers), while reducing fuel costs by more than 20 percent compared to previous airplanes they replace. Designed with the passenger in mind, the 787 delivers an unparalleled experience with the largest windows of any jet, large overhead bins with room for everyone’s bag, comfortable cabin air that is cleaner and more humid, and soothing LED lighting.
The Dreamliner’s superior efficiency and range have allowed airlines to open 257 new non-stop routes around the world. More than 80 customers around the world have ordered more than 1,400 Dreamliners since the program’s introduction, making it the fastest-selling widebody jet in history.
