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Airbus Faces Cabin Comfort Dilemma in A321XLR Jet Launch

PARIS (Reuters) – Airbus has broken records by launching the longest-range narrow-body jetliner at the Paris Airshow, but planemakers are having to rethink their mantra on comfort as they squeeze ever more miles out of jets designed for shorter trips.

Airbus and Boeing have been promoting new carbon-fibre long-haul aircraft such as the 787 Dreamliner and A350, which offer roomier cabins and help passengers avoid jet lag by providing a cabin pressure closer to that felt on the ground.

But they have also been adding more range and capacity to older and narrower models such as the A320neo family and the 737 MAX as airlines demand more flexibility with the advantages of highly efficient single-aisle planes, supporting low fares.

Airbus pushed that further on Monday by adding a longer stride to the A321neo with its new A321XLR, whose range of 4,700 nautical miles leapfrogs the out-of-production Boeing 757 and nudges it into the long-jump category enjoyed by wide-body jets.

It also eats into a range category targeted by a possible new mid-market twin-aisle jet, the NMA, under review by Boeing.

But there is a debate over whether passengers will enjoy flying longer distances in medium-haul planes, or at what price.

Airline bosses on the long-haul low-cost panel at the Paris Air Forum on Friday differed over whether extended-range narrow-body jets or wider twin-aisles were best suited for their growing industry.

In particular, the rise of the single-aisle long-distance jet involves revisiting years of industry marketing about the benefit of escaping jet lag and fatigue on long trips.

Aircraft cabins are pumped to a higher pressure than the ultra-thin outside air at cruising altitude. But the pressure is still lower than at sea level due to structural limitations.

That’s not a problem for shorter trips but travel experts say the higher altitude setting on older planes can contribute to jet lag on long flights, worsening the effect of time zones.

WELL BEING

Although Airbus stresses the 1980s-designed A320 fuselage is wider than the competing 737 MAX and therefore has roomier seats, it also has a lower cabin pressure than modern long-haul alternatives like the Boeing 787 Dreamliner or Airbus A350.

On those airplanes the cabin is pressurised at a level equivalent to 6,000 feet compared with 8,000 feet for the A320 and most other metal-built jets of all sizes.

For the Airbus A330neo wide-body jet the cabin altitude is above 7,000 feet but still below 8,000 feet.

“XLR cabin pressure could be an issue,” said an airline executive who has studied the plane, asking not to be named.

The company itself set out the disadvantages of flying with a high cabin altitude on long journeys when it launched the business-jet version of the A320neo family in 2015.

“A lower cabin altitude makes most sense on long flights, especially towards their end, when an aircraft is able to reach its highest cruising altitude,” Airbus said then on its website.

For the business jet version, Airbus was able to lower the cabin altitude below 6,400 feet. But it could only do so by reducing the maximum number of trips, which matters relatively little to luxury operators but is less attractive to airlines.

That said, cabin pressure is one of many factors influencing the feel of a cabin and is rarely marketed separately.

“Everyone is pushing the ‘well being’ trend … but an A321XLR will arguably be more comfortable than a 9-abreast Boeing 787,” passenger experience expert John Walton said, referring to denser seat configurations used by some airlines.

Placing the first order for the XLR, leasing magnate Steven Udvar-Hazy, executive chairman of Air Lease Corp, said: “We are working on a number of improvements in the cabin to accommodate long-haul operations”.

The A321XLR is expected to be able to fly around eight hours in most cases, linking U.S. eastern cities deep into Europe.

The head of International Airlines Group’s low-cost long-haul carrier Level, Vincent Hodder, told the Paris Air Forum the XLR could be configured to fly as long as 10 hours. Level and others are studying it, he said.

Airbus is chasing potential customers including American Airlines and JetBlue for the XLR and aims to grab up to 200 orders. It is expected to announce a deal with U.S. airline investor Indigo Partners later this week.

(Reporting by Tim Hepher, Editing by Louise Heavens and Mark Potter)

Sikorsky Gets Contract for 12 CH-53K Heavy Lift Helicopters

STRATFORD, Conn., May 17, 2019 /PRNewswire/ — Sikorsky, a Lockheed Martin company (NYSE: LMT) will build 12 production CH-53K King Stallion helicopters under a new $1.13 billion contract from the U.S. Navy. These advanced helicopters are part of the 200 program of record aircraft for the U.S. Marine Corps.

Under the terms of the contract, known as Low Rate Initial Production (LRIP) Lot 2 and 3, Sikorsky will begin deliveries of 12 CH-53K helicopters in 2022, and also provide spares and logistical support. Sikorsky remains committed to continuing to reduce costs over the life of the program.

“I’m proud of the joint government and industry team in achieving this award,” said Col. Jack Perrin, U.S. Marine Corps program manager for the Naval Air Systems Command’s Heavy Lift Helicopters program, PMA-261.

The CH-53K is the only sea-based, long range, heavy-lift helicopter in production and will immediately provide three times the lift capability of its predecessor. The CH-53K will conduct expeditionary heavy-lift transport of armored vehicles, equipment, and personnel to support distributed operations deep inland from a sea-based center of operations. The new CH-53K will have heavy-lift capabilities that exceed all other DoD rotary wing-platforms and it is the only heavy lifter that will remain in production through 2032 and beyond.

“Sikorsky employees and our nationwide supply chain are ready to ramp up CH-53K production to support deployment of this modern, safe and reliable aircraft in 2023-2024,” said Sikorsky Program Director Bill Falk. “This contract demonstrates the U.S. Marine Corps’ confidence in Sikorsky to expand production of this technologically advanced heavy lift helicopter.”

Lockheed Martin, Sikorsky, and its suppliers have made significant investments in facilities, machinery, tooling, and workforce training to ramp-up production required for the CH-53K program. For example, we have installed more than eight new titanium machining centers, designed and implemented a new final assembly test facility with multi-floor ergonomic work platforms, installed 10-ton cranes, and now have 3D work instructions on the factory floor.

“We have transformed our factory for the future and implemented a model for all future helicopter programs,” Falk said. “Additionally, our engineers have implemented the latest technologies such as manufacturing simulation and 3D laser inspection technology. These investments in systems, personnel, and our facilities have elevated Sikorsky’s manufacturing technology and capabilities to meet production requirements of the CH-53K for domestic and international customers.”

King Stallion Progress Update

The all-new CH-53K, designed to be intelligent, reliable, low maintenance and survivable in the most difficult conditions, has flown more than 1,400 test hours and has met all the outer reaches of the test envelope. The King Stallion is in the midst of a rigorous test program to ensure militaries can safely move troops and equipment at higher altitudes, quicker and more effectively than ever.

The CH-53K, which has proven it can lift more than 36,000 pounds, is the most powerful heavy lift helicopter ever built in the United States. The King Stallion’s technologically advanced design will meet the future warfighting requirements for decades to come, enabling missions like humanitarian aid, troop and equipment transport, casualty evacuation (CASEVAC), support of special operations forces, and combat search and rescue (CSAR).

Accomplishments to date include: high altitude, hot temperature, and degraded visual environment flights, maximum weight single-point cargo hook sling load of 36,000 pounds (16,329 kilograms); forward flight speed of over 200 knots; 60 degrees angle of bank turns; altitude of 18,500 feet mean sea level (MSL); 12-degree slope landings and takeoffs; external load auto-jettison; and gunfire testing.

For additional information, visit www.ch-53k.com.

About Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

The CH-53K is a modern, marinized, fly-by-wire aircraft that can move more cargo, farther and at longer distances that any other aircraft in production. For example, the CH-53K can lift an up-armored 22,600 lb. JLTV and carry it 110 nautical miles, in high and hot conditions and still have capacity for an additional 4,400 pounds of payload. There is no other helicopter that comes close to the performance of the CH-53K or that can meet Marine Corps requirements. Photo courtesy U.S. Navy.

Tesla To Buy Battery Tech Maker Maxwell Technologies

(Reuters) – Tesla Inc has agreed to buy energy storage company Maxwell Technologies Inc for $218 million in an all-stock deal that could help the electric car maker produce batteries that hold more energy and last longer at a time when it needs to cut costs and faces growing competition.

Tesla is rapidly increasing production of its Model 3 sedan and needs to lower the price to reach a broader customer base than its pure luxury vehicles.

Maxwell executives told investors in January that it had developed and patented a “dry electrode” technology that could significantly increase the driving range and reduce the cost of electric vehicle batteries. In a presentation, Maxwell said it expected strategic alliances “within six months” centered around this technology.

The company also makes ultracapacitors, which discharge energy faster than batteries and are seen as complementing battery technology.

Ultracapacitors, combined with the energy of batteries, can enable rapid response times, function across a broader temperature range and lengthen battery life by up to two times, according to a blog post on Maxwell’s website.

Volvo-owner Geely Holding Group last May announced a deal with Maxwell and described the company’s ultracapacitor technology as helping to deliver “peak power” for hybrid cars.

“Tesla needs Maxwell’s solvent-free battery electrode manufacturing for a viable path to lower battery costs,” said Craig Irwin of Roth Capital Partners. “Real competitors are coming now, so Tesla needs to move fast.”

Maxwell’s customers also include General Motors and Lamborghini.

The offer values each Maxwell share at $4.75, representing a 55 percent premium to the stock’s closing price on Friday, the companies said. Maxwell shares rose to trade at $4.58.

Currently, Japan’s Panasonic Corp is the exclusive battery cell supplier for Tesla cars.

Tesla chief Elon Musk had highlighted the importance of ultracapacitors back in 2013.

“I’m a big fan of ultracapacitors. Was going to do my PhD at Stanford on them. But we need a breakthrough in energy density…,” Musk had tweeted https://twitter.com/elonmusk/status/336598500156518400?lang=en.

Tesla also sells power storage, often in conjunction with its solar power business, and ultracapacitors could be used in backup systems for homes and for utility power grids.

Maxwell expects the deal, which has already been approved by its board, to close in the second quarter of 2019, or shortly thereafter.

DLA Piper was Maxwell’s outside legal counsel, while Barclays Capital was the independent adviser. Wilson Sonsini Goodrich & Rosati represented Tesla as outside legal counsel.

(Reporting by Supantha Mukherjee, Peter Henderson and Akanksha Rana in Bengaluru and by Joe White and Paul Lienert in Detroit; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty)

Union Pacific Profit Beats Estimates

(Reuters) – Union Pacific Corp (UNP.N), one of the biggest U.S. railroads, on Thursday reported higher-than-expected quarterly profit and said efficiency gains will bolster profits in 2019.

Shares in the company, which connects 23 states in the western two-thirds of the United States by rail, rose 3.3 percent to $159.37.

Its operating ratio – a measure of operating expenses as a percentage of revenue and a key metric for Wall Street – improved 1.1 points to 61.6 percent in the fourth quarter from the same period last year, the company said.

A lower ratio means more efficiency and higher profitability.

“We expect (2019) operating margins will increase as a result of solid core pricing gains and significant productivity benefits,” Chief Executive Lance Fritz said in a statement.

The Omaha, Nebraska-based company this month hired former Canadian National Railway Co (CNR.TO) executive and turnaround expert Jim Vena as its chief operating officer and said its operating ratio would fall below 60 percent by 2020.

Vena worked with Hunter Harrison, who led the revival of two Canadian railroads and died in 2017 after a short stint as CEO of CSX Corp (CSX.O), which recently set a 2019 target for a sub-60 percent operating ratio.

Union Pacific is cutting jobs, consolidating businesses and selling a corporate retreat to drive costs lower.

On a conference call on Thursday, Vena said “everything is on the table” as Union Pacific looks for further efficiency gains.

“I know the railroad has a vision in place to get to a 55 operating ratio already, and we’ll be working aggressively towards that goal,” Vena said.

Net income fell to $1.55 billion, or $2.12 per share in the fourth quarter, from $7.28 billion, or $9.25 per share, a year earlier when the company received a boost from changes in U.S. tax laws.

Freight revenue in the quarter rose 6 percent, lifting total operating revenue to $5.76 billion from $5.45 billion. Net core pricing was up 2.5 percent from the year-ago quarter.

Analysts, on average, expected a profit of $2.06 per share and revenue of $5.74 billion, according to IBES data from Refinitiv.

Terminal dwell, the amount of time rail cars sit idle in a terminal, was 26.7 hours for the quarter, an 18 percent improvement versus a year ago.

Union Pacific and Berkshire Hathaway-owned (BRKa.N) BNSF are the largest U.S. freight rail operators with annual revenue of more than $20 billion each.

(Reporting by Lisa Baertlein in Los Angeles and Rama Venkat in Bengaluru; Editing by Shailesh Kuber, Steve Orlofsky and Will Dunham)

Image from http://www.up.com

Avianca Brasil Looking for Additional Capital

SAO PAULO, Jan 22 (Reuters) – Avianca Brasil, which filed for bankruptcy protection in December, is looking for a cash injection and has hired Brazilian consulting firm Galeazzi & Associados to help in talks with investors and creditors, the airline said.

Galeazzi’s executives are already visiting the carrier’s creditors to discuss options, a source said, asking for anonymity to disclose private talks. Reuters first reported the news of the Galeazzi hire, citing sources.

Avianca shareholders are discussing a potential cash injection with different investors, including hedge fund Elliott Management Corp, two sources said. Any investment now would need to happen within the bankruptcy protection process, likely in the form of debtor-in-possession financing.

Elliott and Galeazzi did not immediately reply to requests for comment.

Any capital injection or loan would need authorization from the bankruptcy judge.

Avianca is battling two of its main aircraft lessors, Aircastle Ltd and General Electric Co’s unit GE Capital Aviation Services, who have tried so far unsuccessfully to ground or repossess 40 percent of its fleet.

Avianca also said in the statement it continues to operate normally.

The escalating legal battle has added to the uncertainty surrounding Avianca Brasil’s ability to maintain its current flight schedule.

(Reporting by Tatiana Bautzer Editing by Susan Thomas and Alistair Bell)

Remembering Southwest Airlines Co-Founder Herb Kelleher

(Reuters) – Herb Kelleher, who co-founded pioneering low-cost carrier Southwest Airlines Co and built it into an industry powerhouse stamped with his colorful, unconventional personality, died on Thursday at age 87, the U.S. carrier said.

Kelleher set up Southwest with Rollin King more than 50 years ago, with the airline making its first flight in June 1971. King died in 2014, aged 83.

Dallas-based Southwest is known for its quirky culture, closely connected with Kelleher’s maverick image, as well as its fast growth from a regional carrier into one of the biggest in the United States.

The airline flew short flights known as point-to-point, rather than the hub-and-spoke model of its bigger rivals, and used a single model of aircraft, Boeing Co’s 737, to cut complexity and cost.

Kelleher was “Grand Master Yoda of low fares airlines,” the chief executive of Europe’s largest low-cost carrier Ryanair said in a Twitter post on Friday.

“He was the leader, the visionary and the teacher: without Herb there would be no Ryanair and no low fares airlines anywhere,” said Michael O’Leary, who spearheaded the transformation of European air travel after a visit to Southwest in 1992.

Southwest’s cabin crews have become known for their good humor – a legacy of Kelleher, memorialized in a “laugh button” that visitors could press inside the company’s headquarters to hear his famous cackle.

Kelleher won the affection of customers and employees with low fares, good wages and his own high spirits. He sought to instill a sense of fun among employees, sometimes showing up in costume or helping unload baggage.

“A company is stronger if it is bound by love rather than by fear,” he was once quoted as saying.

Kelleher was also known for his fondness for smoking and bourbon.

John Plueger, chief executive of Air Lease Corp, said on Thursday that when he first met Kelleher more than 30 years ago, Kelleher was about to deliver a speech at a New York hotel. “The manager asked that he refrain from smoking. Herb looked up, smiled, and said: ‘No smokey, No talkey.’”

Kelleher was a formidable industry competitor as well.

“There aren’t a whole lot of individuals who you can point to that single-handedly contributed to building a demonstrable portion of the modern economy. Herb Kelleher was one,” tweeted Jon Ostrower, an independent aviation commentator and editor of TheAirCurrent.com.

“His model spawned the global democratization of the affordable movement of humanity by air.”

‘I LIKE TO WIN’

The New Jersey-born Kelleher served as Southwest’s executive chairman for 30 years until 2008 and was chief executive from September 1981 to June 2001.

Kelleher was long a towering figure in the U.S. airline industry along with Bob Crandall, his rival at American Airlines and polar opposite in style. The two built different business models and competed fiercely but with mutual respect.

“It was very hot competition and I like to win,” Kelleher told NPR in a 2016 podcast. Crandall, captured in a YouTube video, once serenaded Kelleher with a version of “My Way,” the song popularized by Frank Sinatra.

Steven Udvar-Hazy, executive chairman of Air Lease and a pioneer of the aircraft leasing industry, whose expansion coincided with the rise of budget carriers, paid tribute to Kelleher as “the builder of the world’s most successful low fare airline.””Herb: a final Wild Turkey Bourbon toast from all of your closest friends,” he added.

(Reporting by Manogna Maddipatla and Ismail Shakil in Bengaluru, Tim Hepher in Paris, Conor Humphries in Dublin and Jeffrey Dastin in San Francisco; Editing by Shailesh Kuber and Peter Cooney)

Wall Street Set To Jump On Temporary Trade Detente

(Reuters) – U.S. stock index futures jumped around 2 percent on Monday, setting Wall Street up to add to last week’s strong gains, after the United States and China declared a temporary trade truce.

Strong gains in Apple Inc (AAPL.O) and other technology stocks pushed Nasdaq futures NQc1 up more than 2 percent, while S&P 500 e-minis ESc1 touched a near 1-month high. Gains in Dow futures set the blue-chip index up for a near 450-point gain at the open.

Washington and Beijing agreed to a 90-day trade ceasefire during the G20 summit in Argentina on Saturday and U.S. President Donald Trump said China has agreed to “reduce and remove” tariffs below the 40 percent level that the country is currently charging on U.S.-made vehicles.

However, the White House also said that the existing 10 percent tariffs on $200 billion worth of Chinese goods would be lifted to 25 percent if no deal was reached within 90 days.

The trade optimism spilt over to shares of Apple, which gained 3.3 percent in premarket trading.

Trump had said last week that the next round of tariffs could also be placed on the company’s iPhones, as part of the $267 billion list of goods not yet hit by tariffs.

Trade-sensitive Caterpillar Inc (CAT.N), Boeing Co (BA.N) gained over 4.5 percent each, while U.S. carmakers General Motors Co (GM.N), Ford Motor Co (F.N) and Tesla Inc (TSLA.O) rose between 3 percent and 4 percent.

Shares of energy companies also rose as crude prices surged, helping lift Exxon Mobil Corp (XOM.N) up by 2.1 percent and Chevron Corp (CVX.N) by 2.4 percent. [O/R]

“Most of us were hoping that we would come out of these discussions with no new tariffs and a pause, which is ultimately what we got,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Image from RT.com

FedEx Expands Fleet To Add 1,000 Chanje Electric Vans

(Reuters) – FedEx Corp said on Tuesday it plans to add 1,000 Chanje electric delivery vans to its fleet of vehicles in a bid to save on fuel and cut down on pollution.

The package delivery company will buy 100 Chanje V8100 vans from the Los-Angeles based startup and lease the remaining from U.S. truck rental company Ryder System Inc.

United Parcel Service Inc, FedEx and Deutsche Post AG unit DHL have faced pressure from regulators around the world to lessen the environmental impact of their fleets.

UPS, FedEx and DHL have placed orders for Tesla Inc’s all-electric Semis and already use Workhorse Group Inc’s electric vans.

The Chanje electric vans will have a range of more than 150 miles when fully charged, with maximum cargo capacity of about 6,000 pounds.

Last year, Ryder said it would order electric delivery vans from Chanje and become the exclusive U.S. sales and lease partner for the company.

The Chanje V8100 vans are manufactured by FDG Electric Vehicles Ltd, the startup’s main investor, in Hangzhou, China.

The vans would be used for FedEx’s commercial and residential pick-up and delivery services in California.

(Reporting by Arunima Banerjee in Bengaluru; Editing by Shounak Dasgupta)

Image from www.chanje.com

JetBlue Wants Regulators To Review Joint Ventures

(Reuters) – The chief executive of JetBlue Airways Corp, which has made no secret of its desire to expand into transatlantic service, said on Thursday that U.S. and European regulators should review joint ventures that have allowed big airlines to dominate the market.

JetBlue CEO Robin Hayes, speaking at an airline industry event in New York, said consumers were at risk of decades of high fares because of legacy transatlantic partnerships.

JetBlue (JBLU.O), the sixth largest U.S. airline, wants to service Europe from its main hubs in New York, Boston and Fort Lauderdale, Florida, but is concerned about challenges posed by the big three U.S. legacy airlines’ control of important foreign markets through their global alliances.

American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N) and United Airlines (UAL.O) are each part of a global airline alliance that together control nearly 80 percent of the transatlantic market. The three carriers also have joint ventures with member airlines in Europe that allow them to coordinate prices and schedules and share revenues.

“We believe that regulators should be doing everything they can to make it possible for new players and new models to have a fair shot at competing,” Hayes said.

Hayes believes competition authorities in the United States, the UK and the European Union should force slot divestitures to create a level playing field for new entrants, particularly in the wake of major consolidation among U.S. carriers over the past decade.

For example, since American Airlines forged a commercial tie-up with fellow oneworld alliance member British Airways (ICAG.L) in 2010, it has merged with US Airways to become the world’s largest airline.

Such mergers have made it more difficult for younger, low-fare carriers like JetBlue to access gates and slots – as airport take-off and landing rights are known – at congested airports where the larger airlines dominate.

A handful of Europe-based budget carriers, including Norwegian Air (NWC.OL) and WOW Air, have broken into the transatlantic market, but two – Primera Air and Monarch Airlines – were forced into bankruptcy over the past year.

JetBlue argues that Mint, the carrier’s version of business class, has driven a 50 percent decline in premium fares on some competing U.S. routes. It believes it can drive a similar reduction for premium travel between the United States and Europe.

Separately on Thursday, JetBlue announced a biometric self-boarding gate for international flights at New York’s John F. Kennedy International Airport (JFK), becoming the first domestic airline to launch the use of facial recognition technology to verify passengers with a quick photo capture for international travel.

JetBlue has 14 million annual JFK customers.

(Reporting by Tracy Rucinski; Editing by Leslie Adler)

Image from www.jetblue.com

UTC Beats Profit Estimates On Airplane Boom

(Reuters) – United Technologies Corp reported a better-than-expected quarterly profit and raised its full-year profit forecast on Tuesday as it benefited from higher sales of aircraft parts, driven by record production at planemakers Boeing and Airbus.

A boom in air travel on the back of an improving global economy has boosted profits at major suppliers United Tech and Honeywell.

United Tech said sales in its Pratt & Whitney aircraft engines business jumped about 24 percent to $4.79 billion in the third quarter ended Sept. 30.

Revenue at the company’s aerospace systems unit, which provides spare parts, overhaul and repair services to airlines, increased 8.7 percent to $3.96 billion.

The maker of Carrier air conditioners and Otis elevators also raised its 2018 adjusted profit forecast for the third time to a range of $7.20 and $7.30, up from $7.10 and $7.25, previously.

On an adjusted basis, the company earned $1.93 per share, beating analysts’ average estimate of $1.81 per share, according to Refinitiv.

Net sales rose 9.6 percent to $16.51 billion.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)

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