Boeing [NYSE: BA] and Ryanair announced today that Europe’s largest airline is placing a firm order for 75 additional 737 MAX airplanes, increasing its order book to 210 jets. Ryanair again selected the 737 8-200, a higher-capacity version of the 737-8, citing the airplane’s additional seats and improved fuel efficiency and environmental performance.
“Ryanair’s board and people are confident that our customers will love these new aircraft. Passengers will enjoy the new interiors, more generous leg room, lower fuel consumption and quieter noise performance. And, most of all, our customers will love the lower fares, which these aircraft will enable Ryanair to offer starting in 2021 and for the next decade, as Ryanair leads the recovery of Europe’s aviation and tourism industries,” said Ryanair Group CEO Michael O’Leary.
O’Leary and Ryanair leaders joined the Boeing team for a signing ceremony in Washington, D.C. Both companies acknowledged COVID-19’s impacts on air traffic in the near-term, but expressed confidence in the resilience and strength of the passenger demand over the long term.
“As soon as the COVID-19 virus recedes – and it likely will in 2021 with the rollout of multiple effective vaccines – Ryanair and our partner airports across Europe will – with these environmentally efficient aircraft – rapidly restore flights and schedules, recover lost traffic and help the nations of Europe recover their tourism industries, and get young people back to work across the cities, beaches and ski resorts of the European Union,” O’Leary said.
Ryanair is the launch customer for the high-capacity 737-8 variant, having placed its first order for 100 airplanes and 100 options in late 2014, followed by firm orders of 10 airplanes in 2017 and 25 in 2018. The 737 8-200 will enable Ryanair to configure its aircraft with 197 seats, increasing revenue potential, and reduce fuel consumption by 16 percent compared to the airline’s previous airplanes.
– $11.5 million will stabilize and improve Colorado – New Mexico segment
WASHINGTON – Amtrak, committed to the national network of long-distance, interregional trains, is thanking the Federal Railroad Administration for a $5.6 million Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant to stabilize and rehabilitate the route of the Amtrak Southwest Chief in Colorado and New Mexico. Combined with $4.9 million in Amtrak federal funds set aside for this service and $1 million from the New Mexico Department of Transportation (NMDOT), a total of $11.5 million will be invested from Trinidad, Colo., to south of Lamy, N.M.
This is the fifth federal grant for the route segment in these two states and Kansas. There is still a significant need for component renewal and restoration of the line to bring it to a more robust condition. When these improvements and others are complete, it will remain a productive route for decades to come.
Between 2016 and 2020, Amtrak has committed $15.8 million in direct funding for the route of the Southwest Chief, and an additional $12.8 million in matching funds to previously awarded federal grants. Amtrak has also invested between $4 and $8 million annually in this segment, outside of any grant programs, including selective installation of ties, replacing bolted rail in curves, and bridge or culvert repair.
“Starting in 2014, a team of elected and private officials formed a coalition with Amtrak that has been successful as shown by matching funds from the states and Amtrak, the political backing for the train by the region’s Congressional delegation, and the continued support by the cities, counties, and communities alongside the railway,” said Bill Flynn, Amtrak President & Chief Executive Officer. “Our past and current investments, from Kansas through Colorado and New Mexico, demonstrate our commitment to the Chief route and also preserve this segment for eventual inclusion in a north-south connection along the Front Range between Denver and Albuquerque, via Colorado Springs and Pueblo.”
Most of the trackage is owned by Burlington Northern Santa Fe Railway, which has been moving its traffic to less mountainous routes. The arid weather conditions and low freight tonnage since 2008 have allowed the right-of-way to remain in stable condition despite its advancing age. Amtrak, NMDOT and BNSF have identified critical areas where investment in the route infrastructure will improve its condition and enhance safety such that more efficient and productive maintenance dollars can be applied to it annually. Additional federal grant applications are expected to be sought.
Project engineering and construction under this CRISI grant will be carried out by the BNSF Railway Engineering Department and the Rio Metro Regional Transportation District, the latter which manages the NMDOT infrastructure. Work is expected to begin in 2021 and carry into 2022.
New ties will be installed on a 31-mile section south of Raton Pass and another six-mile segment in New Mexico, more than 12 miles of bolted rail will be converted to welded rail between Lamy and where Rio Metro’s Rail Runner commuter traffic diverges to Santa Fe, and the decks of two bridges will be rebuilt, along with three grade crossings.
BNSF commissioned a geotechnical assessment to provide recommendations for the reduction of rockfall hazards at Raton Pass, Glorieta Pass and Shoemaker Canyon. The grant will fund additional stabilization and protection measures. BNSF’s 3.3 percent Raton Pass grade is only used by Amtrak trains and is the steepest rail route in regular U.S. use. It is has been a National Historic Landmark since 1960 and is at an elevation of 7,834 feet.
The Southwest Chief (Trains 3 & 4) operates 2,265 miles between Chicago and Los Angeles, via Kansas City and Albuquerque, and also provides access to the Philmont Scout Ranch (northeast New Mexico’s largest employer), the Grand Canyon and Las Vegas.
OSLO (Reuters) – Norwegian Air <NAS.OL> could run out of cash by mid-May unless its proposed financial rescue plan is approved by creditors and shareholders, the budget carrier warned on Monday.
If approved by bondholders, leasing companies and shareholders, the plan may help Norwegian survive the coronavirus outbreak, which has grounded 95% of its fleet, leaving just 7 aircraft in operation.
But the planned debt-to-equity swap will hand majority ownership of 53.1% to the company’s lessors, while bondholders would own 41.7%, leaving current shareholders with just 5.2%, it said.
The move would allow Norwegian to tap government guarantees of 2.7 billion crowns ($255 million), which are dependent on the company reducing its ratio of debt to equity, and which would come on top of 300 million crowns it has already received.
It is “critical to get access to the state aid package by mid-May before the company runs out of cash,” Norwegian said in a presentation to investors.
Rapid growth has made Norwegian Europe’s third-largest low-cost airline and the biggest foreign carrier serving New York and other major U.S. cities, but with the expansion came debts and liabilities of close to $8 billion by the end of 2019.
Last week, the company reported that four Swedish and Danish subsidiaries had filed for bankruptcy and that it had ended staffing contracts in Europe and the United States, putting some 4,700 jobs at risk.
Norwegian’s shares opened 8% lower on Monday and are down 86% year-to-date.
The company aims to gradually emerge from the COVID-19 crisis with both a short-haul and long-haul network in place, and is targeting a return to normal operations in 2022, it said.
The plan requires backing from bondholders in each of four separate votes planned for April 30, from shareholders in an extraordinary general meeting scheduled for May 4, and from leasing firms.
It maintained plans to raise up to 400 million crowns in cash from owners.
(Editing by Jan Harvey)
FILE PHOTO: A Norwegian Air plane is refuelled at Oslo Gardermoen airport
Air Canada said today that it will gradually suspend the majority of its international and U.S. transborder flights by March 31, 2020 in response to decisions by national governments, including Canada and the United States, to close borders and restrict commercial aviation as a result of the COVID-19 crisis. Subject to further government restrictions, the airline intends to continue to serve a small number of international and U.S. trans-border destinations from select Canadian cities after April 1, 2020. The airline also intends to continue serving all provinces and territories of Canada after that date, albeit with a significantly reduced network.
In order to facilitate the continued repatriation of citizens to their home countries, including Canadians back to Canada, and to support the essential movement of needed goods and cargo during the crisis, Air Canada intends to continue to operate a limited number of international “air bridges” between one or more of its Canadian hubs and the cities of London, Paris, Frankfurt, Delhi, Tokyo and Hong Kong from April 1 until at least April 30. This will reduce its international network from 101 airports to six.
As to U.S. transborder services, given the decision by the U.S. and Canadian governments today, from April 1, Air Canada will reduce its transborder network from 53 airports to 13, subject to further reductions based on demand or government edicts. The cities with continued service will be: New York (LGA and EWR), Boston, Washington, D.C. (IAD and DCA), Chicago, Houston, Seattle, San Francisco, Los Angeles, Denver, Orlando and Fort Lauderdale.
Domestic Canada network
Air Canada intends to continue to serve all provinces and territories of Canada, reducing its domestic network from 62 airports to 40 through a reduced network during the period April 1 to 30, subject to further reductions based on demand or government edict.
For information on Air Canada’s schedule beginning April 1, 2020 please see www.aircanada.com.
“The restrictions on travel imposed by governments worldwide, while understandable, are nonetheless having a cataclysmic effect upon the global airline industry. Our immediate focus is on ensuring the safety and well-being of our employees, customers and communities. At the same time, we are exploring with the Government of Canada possibilities to maintain essential operations to enable as many Canadians as possible to return to Canada, and to support other vital transport needs, including the shipment of goods and cargo during the crisis as required in any state of emergency. We are working around the clock to deal with the impact for our customers and our business of the various travel restrictions that are being made by governments at unprecedented speed without advance warning. We will also look at helping Canadians to return home by operating a limited number of charters from international destinations and exploring with the Government of Canada avenues in this regard. We will provide updates as details are finalized,” said Calin Rovinescu, President and Chief Executive of Air Canada.
For Affected Customers
The airline will gradually suspend some of its scheduled flights between now and March 31 as demand for Canadians to return to Canada from a number of destinations reduces. Please check Air Canada’s website for details given the rapidly evolving situation.
Affected customers, including those with Air Canada Vacations packages, whose flights are cancelled will receive a full credit valid for 24 months. There is no requirement to contact Air Canada as customers will be contacted directly.
The airline has also put in place temporary, one-way fares to Canada to enable customers abroad to return home. Customers seeking to contact Air Canada are advised that contact centre wait times are elevated, so the airline has put in place a number of self-service tools to enable customers to manage their travel online. For more information please consult our COVID-19 webpage at www.aircanada.com.
Allegiant Travel Company (NASDAQ: ALGT) today announced plans to establish a base of operations at Concord-Padgett Regional Airport (USA). The Las Vegas-based company will invest $50 million to establish the new base in Concord, creating at least 66 high-wage jobs and housing two Airbus aircraft.
The company, which focuses on linking travelers in small-to-medium cities to world-class leisure destinations, plans to begin its base operations in Concord on October 7, 2020. Concord-Padgett Regional Airport will become the airline’s 21st aircraft base.
Located minutes from Charlotte, Concord is one of the nation’s fastest-growing cities, with a robust business infrastructure and a diverse workforce. Home to some of North Carolina’s top tourist destinations, including NASCAR’s famed Charlotte Motor Speedway and Concord Mills, the city boasts a historic downtown district and a wide variety of entertainment and leisure activities for visitors and local residents. Concord is the largest city in Cabarrus County, with a population of more than 94,000.
“Since Allegiant’s first flight from Concord-Padgett Regional Airport in 2013, their growth has been truly remarkable,” said Concord Mayor Bill Dusch. “We are very pleased that Allegiant has selected Concord for a new base of operations, which brings new jobs and travel opportunities for the citizens of Concord and the Charlotte region. We look forward to continue developing our partnership with Allegiant in the future.”
“We’re excited about making Concord a permanent base, and further establishing Allegiant as a hometown airline for this high-performance city,” said Keith Hansen, Allegiant’s vice president of government affairs. “With a growing and diverse population seeking affordable vacation travel, and as a regional destination for race enthusiasts, arts fans and more, Concord is an ideal location for an Allegiant base. Having locally-based operations will mean opportunities for expanded hours, as well as more – and more frequent – flight offerings for residents and visitors alike.”
“This decision reaffirms that what began as a wonderful opportunity for a growing destination has grown into a committed relationship,” said Concord-Padgett Regional Airport Aviation Director Dirk Vanderleest. “My staff and I are humbled by this opportunity and milestone for USA. We look forward to working hand in hand with Allegiant Air to ensure that both residents and visitors alike are recipients of excellent customer service and expanded vacation opportunities.”
“Allegiant took Cabarrus County’s tourism industry to the next level with commercial air service and we’re proud to offer our support as they continue to grow,” said Cabarrus County Convention and Visitors Bureau President & CEO Donna Carpenter. “Visitor spending reached over $469 millionin Cabarrus County in 2018. These enhancements will fuel that figure, generating tax revenues that will positively impact the local economy and quality of life in our community.”
Allegiant began operating at USA in 2013 and currently offers seven non-stop routes: one to the Mardi Gras City of New Orleans and six to premier Florida destinations, including Destin/Fort Walton Beach, Fort Lauderdale, Orlando/Sanford, Palm Beach, Punta Gorda and St. Pete-Clearwater. Since establishing service, Allegiant has flown more than one million passengers through Concord, including 353,000 in 2019 alone.
“Cabarrus County’s investment in Allegiant emphasizes the power of collaboration,” said Cabarrus CountyBoard of Commissioners Chair Steve Morris. “Our support of projects related to the Concord-Padgett Regional Airport boosts the economic stability of all municipalities in our county and throughout the region.”
Both the Concord City Council and Cabarrus County Commissioners approved three-year economic development grants for the expansion. Based on a portion of the increased tax investment, the grant amount from the City of Concord would not exceed $48,649 and $75,001 from Cabarrus County.
“The establishment of this base really reinforces Allegiant’s commitment to our community,” said Cabarrus Economic Development Existing Industry Director Page Castrodale. “It sends a message that Cabarrus County is the right place to do business.”
Allegiant, which employs more than 4,300 team members across the U.S., plans to immediately begin hiring pilots, flight attendants, mechanics and ground personnel to support the operations. The majority of the new positions are expected to offer salaries that are more than double the state’s average wage. Interested applicants may apply online.
Alstom presents its improved Aptis e-bus at ElekBu
28 January 2020 – Alstom will present its Aptis electric bus at ElekBu 2020, being held in Berlin from 4 to 5 February. After extensive testing in many French and European cities for the past two years, the serial design of Alstom’s innovative 100% electric mobility solution incorporates feedback from passengers and transport operators. Following test drives in major German cities such as Berlin, Hamburg and Munich, the serial 12 meters Aptis e-bus is to be shown at a roadshow in Germany this year.
The serial vehicles are based on an optimized global architecture requiring fewer spare parts references and considerably facilitating maintenance operations. Thanks to a wheel steering angle of more than 40°, its ease of insertion increases significantly. The 15% reduction in the total weight of the vehicle, combined with the use of new, more efficient and state of the art batteries, substantially increases range. Aptis now accommodates more passengers, with a capacity of 100 persons, while still offering them more fluidity thanks to large sliding doors.
In addition to the technical improvements, Aptis can also boast significant improvements to passenger comfort. A new air-conditioning system that (fully electrical heat-pump) maximises thermal comfort and the panoramic rear lounge has been enhanced to give a feeling of increased space. The new hydraulic suspension allows superior comfort and sound insulation, making Aptis one of the quietest and most innovative buses on the market. The high level of comfort is also reflected in the many very positive passenger surveys.
“Alstom is pleased to present the Aptis at ElekBu, which is so important for the German market. In the last two years, we have gained important experiences in trial operation. This 100% electric mobility solution offers a new experience to passengers and drivers while meeting the new mobility challenges of urban areas,” underlines Guillaume Legoupil, Sales Director Aptis.
Aptis is particularly popular in France, where it is also built. It has already been chosen by Paris in the context of Europe’s largest call for tender for electric buses, as well as by the cities of Strasbourg, Grenoble, La Rochelle and Toulon. From February, the first series buses will be in regular service in Strasbourg.
Atari doesn’t have the cultural cachet it used to. After an industry-crashing downfall in the ’80s, the video game pioneer has been unable to find its niche, and recently, its oft-delayed retro console has had a troubled development. Atari hopes to find some success by lending what gaming cred it has left to the hospitality industry. The company signed a contract that see Atari license its name and branding to a real estate developer, which will build eight hotels across the US. The first location will break ground this year in Phoenix. Others in Austin, Chicago, Denver, Las Vegas, San Francisco, San Jose and Seattle will follow.
The main draw of the Atari hotels will likely be their esports studios. There are no details about what these will include, but each hotel will also have an “Atari gaming playground.” Assuming the esports studios are venues where pros compete, the “playgrounds” could be lounges for guests that are equipped with gaming PCs. The hotels will have a few accoutrements outside of the standard pool and gym — restaurants, bars, bakeries and movie theaters will also be part of each building.
American Airlines has launched a reciprocal codeshare agreement with Morocco’s largest airline, Royal Air Maroc, to add new options for travel to Morocco starting Dec. 26.
American’s customers will be able to purchase select Royal Air Maroc flights to Casablanca, Morocco (CMN), which will provide seamless connecting service to Marrakech, Morocco (RAK). These flights are available for sale now for travel beginning December 26. The codeshare will expand to additional cities across the African continent in early 2020.
“Royal Air Maroc is a premier African carrier and their hub in Casablanca is perfectly situated to offer our customers convenient connections between North America and over 40 destinations throughout Africa,” said Vasu Raja, American’s Senior Vice President of Network Strategy. “With Royal Air Maroc’s upcoming entry into the oneworld® alliance and our recently announced service between Philadelphia and Casablanca, we are committed to creating more opportunities for our customers to visit unique destinations in Africa.”
Beginning in early 2020, the codeshare agreement will provide American’s customers access to popular destinations in Africa, including:
Abidjan, Cote d’Ivoire (ABJ)
Accra, Ghana (ACC)
Lagos, Nigeria (LOS)
Luanda, Angola (LAD)
Monrovia, Liberia (ROB)
The codeshare will also allow Royal Air Maroc customers to connect to new destinations throughout American’s domestic network beginning Dec. 26.
American will begin seasonal service to CMN June 4 as the only U.S. carrier with nonstop service to Morocco, which will be operated three times per week. Flights are available for purchase now.
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.
Sun Country will start cargo service with a big first customer: Amazon
Minnesota airline will add 10 planes, 70 pilots under 6-year cargo service deal.
Amazon is hiring Sun Country Airlines to fly packages around the country, a windfall deal that thrusts the Minnesota carrier into the cargo business.
The six-year deal, announced Tuesday, will immediately create a massive expansion for Sun Country. From the first flights next spring, the new cargo service for Amazon Air will quickly grow to represent 20% of all of Sun Country’s flying.
It is the first time Amazon has hired a commercial passenger airline for air service.
Sun Country will add 10 airplanes to its fleet and hire an additional 70 pilots to its existing force of 350. The Twin Cities-based airline will also hire more maintenance workers and 20 to 30 headquarters staffers to support Amazon Air operations.
“These are pretty highly compensated positions. … We are very excited about this,” Jude Bricker, Sun Country’s chief executive, said Tuesday. “This is going to be a great growth opportunity for our company, and the important thing for the Twin Cities is it will make us a better airline for Minnesota leisure travelers.”
Amazon is hiring Sun Country to fly shipments under its Amazon Air business. The six-year deal puts Sun Country into the scheduled cargo business for the first time. It will hire 70 pilots to fly the routes.
