Amtrak submitted a letter to Congress outlining an additional $1.475 billion in supplemental funding needed in FY 2021. This additional funding is necessary for Amtrak to operate minimum service levels across the passenger rail network and continue capital investments for the future. The funds would also support Amtrak’s 17 state partners on the National Network and nine commuter and state partners on the Northeast Corridor.
“As the severity and duration of this pandemic and its economic fallout become clearer, we are seeking supplemental federal funding for the next fiscal year,” said Amtrak President and CEO Bill Flynn in the letter.
To help offset the impact of revenue losses, Amtrak is taking significant steps to reduce its operating costs by approximately $500 million, including temporarily reducing train capacity across our system to match demand, restructuring our workforce, and controlling discretionary expenses. Yet even with these steps, Amtrak still requires additional federal investment in FY 2021.
“It is clear that Amtrak faces daunting challenges in Fiscal Year 2021, which will require us to take action to protect our rail network, our critical capital assets, and the livelihoods of our employees,” said Flynn in the letter.
With strong ridership and revenue levels in the first quarter of FY 2020, Amtrak was on track for another record-breaking year. However, Amtrak, like all other modes, has seen a dramatic decline in demand for service since the pandemic, and is expecting ridership to only return to approximately 50% in FY 2021. The $1.475 billion is in addition to Amtrak’s $2.040 billion annual grant request submitted to Congress earlier this year, and without this support, Amtrak will be unable to minimize the impacts to service and its workforce as described in the letter.
Textron Aviation Inc., a Textron Inc. (NYSE:TXT) company, today announced the successful first flight of its new twin utility turboprop, the Cessna SkyCourier. The milestone flight is a significant step toward entry into service for the clean-sheet aircraft, and it kicks off the important flight test program that validates the performance of the Cessna SkyCourier.
“Today was an exciting day for our employees, our suppliers and our customers. The Cessna SkyCourier performed exactly as we expected, which is a testament to the entire team of men and women who worked together to prepare for this day,” said Ron Draper, president and CEO, Textron Aviation. “I’m proud of the way the team has persevered through disruptions caused by the COVID-19 global pandemic and remained focused on getting us to this point. The Cessna SkyCourier will be an excellent product in its segment due to its combination of cabin flexibility, payload capability, superior performance and low operating costs. Our customers will be very pleased with what they experience from this aircraft.”
The Cessna SkyCourier took off from the company’s east campus Beech Field Airport, piloted by Corey Eckhart, senior test pilot, and Aaron Tobias, chief test pilot. During the 2-hour and 15-minute flight, the team tested the aircraft’s performance, stability and control, as well as its propulsion, environmental, flight controls and avionics systems.
“We were very pleased with how the Cessna SkyCourier performed throughout its first flight,” Eckhart said. “It was particularly impressive to see how stable the aircraft handled on takeoff and landing. The Cessna SkyCourier already displays a high level of maturity in its flight characteristics, especially for a first flight. We were able to accomplish everything we wanted on this flight, and that’s an excellent start to the flight test program.”
The prototype aircraft, along with five additional flight and ground test articles, will continue to expand on performance goals, focusing on testing flight controls and aerodynamics.
Relentless capability
The Cessna SkyCourier, featuring Pratt & Whitney Canada PT6A-65SC engines, will be offered in various configurations including a 6,000-pound payload capable freighter, a 19-seat passenger version or a mixed passenger/freight combination, all based on the common platform.
The Cessna SkyCourier is designed for high utilization and will deliver a combination of robust performance and lower operating costs. Cessna SkyCourier will feature the popular Garmin G1000 NXi avionics suite and offer highlights such as a maximum cruise speed of up to 200 ktas and a maximum range of 900 nm. Both freighter and passenger variants of the Cessna SkyCourier will includer single-point pressure refueling as standard to enable faster turnarounds.
(Reuters) – Emirates Group is planning to cut about 30,000 jobs to reduce costs amid the coronavirus outbreak, which will bring down its number of employees by about 30% from more than 105,000 at the end of March.
The company is also considering speeding up the planned retirement of its A380 fleet, the report added, citing people familiar with the matter.
An Emirates spokeswoman said that no public announcement has been made yet by the company regarding “redundancies at the airline”, but that the company is conducting a review of “costs and resourcing against business projections”.
“Any such decision will be communicated in an appropriate fashion. Like any responsible business would do, our executive team has directed all departments to conduct a thorough review of costs and resourcing against business projections,” the spokeswoman said.
Emirates, one of the world’s biggest long-haul airlines, said earlier this month that it will raise debt to help itself through the coronavirus pandemic, and may have to take tougher measures as it faces the most difficult months in its history.
The state-owned airline, which suspended regular passenger flights in March due to the virus outbreak that has shattered global travel demand, had said that a recovery in travel was at least 18 months away.
It reported a 21% rise in profit for its financial year ending March 31, but said the pandemic had hit its fourth-quarter performance.
It said it would tap banks to raise debt in its first quarter to lessen the impact of the virus on cash flows.
(Reporting by Kanishka Singh in Bengaluru and Alexander Cornwell in Dubai; Editing by Catherine Evans and Jan Harvey)
FILE PHOTO: An Emirates Airbus A380 airliner lands at Nice international airport, France
WASHINGTON, April 6 (Reuters) – RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy Sunday and grounded all of its 72 planes as it waits on a decision from U.S. Treasury for government assistance.
The Trump administration is weighing applications from numerous airlines as it considers how to disburse $25 billion in passenger airline grants, $4 billion for cargo carriers and $3 billion for airport contractors. Congress approved the bailout funds to help air carriers cover payroll costs.
RavnAir, which filed for Chapter 11 bankruptcy protection in Delaware, said Sunday it was suspending all operations and laying off all employees.
“We took these actions to ensure our airline has a future, and to give us time to ‘hit pause'” while it seeks Treasury grants and “other sources of financial assistance that will allow us to weather the coronavirus pandemic and emerge successfully once it has passed.”
In a letter posted Sunday, RavnAir Chief Executive Dave Pflieger said the airline was working to “resume the vital air service you depend on to get home to your families, to your businesses, to medical appointments, and to other duties that are essential to our communities and the state of Alaska.”
Delta Air Lines Inc, American Airlines Group Inc , Spirit Airlines Inc, Southwest Airlines Co , United Airlines Holdings Inc and JetBlue Airways Corp are among the airlines that confirmed they filed before a Friday deadline set by Treasury to get speedy consideration.
On Sunday, top Democrats including House Speaker Nancy Pelosi and Senator Charles Schumer urged Treasury Secretary Steven Mnuchin to move quickly and not impose unreasonable conditions on the grants. Airline unions and many Democrats object to Treasury demanding significant equity or warrants as a condition to the grants.
(Reporting by David Shepardson; Editing by Lisa Shumaker)
DEARBORN, Mich. (Reuters) – Investors sent Ford Motor Co shares skidding on Tuesday after the company delivered a weaker-than-expected 2020 forecast, warning of higher warranty costs, lower profits at its credit arm and continued investments in future technology such as self-driving cars.
Shares in the No. 2 U.S. automaker plunged 9.4% in after-hours trading, shaving more than $3 billion off the company’s value. In comparison, electric carmaker Tesla closed up nearly 14%, pushing its market cap to $160 billion, more than four times the size of Ford’s $36.4 billion.
“The results were not OK in 2019,” Ford Chief Financial Officer Tim Stone told reporters at the company’s headquarters outside Detroit.
“As I look to 2020 and beyond, I’m very optimistic,” he said, while cautioning that Ford’s lower guidance does not yet account for the potential impact of the coronavirus outbreak in China.
In an after-hours call with financial analysts, Chief Executive Jim Hackett was more blunt about the challenge of balancing Ford’s protracted turnaround efforts with its continuing work on future technology, including electric and self-driving cars.
“I don’t think this company can keep straddling the old and new worlds forever … This company has to change,” Hackett said.
Ford said it expects 2020 operating earnings to be in the range of 94 cents to $1.20 a share. Analysts were expecting $1.26 a share.
Stone said Ford expects to continue its quarterly dividend of 15 cents, which could cost the company $2.4 billion in 2020. Asked about continuing the dividend after lowering its 2020 guidance, Hackett said, “We like to return value to shareholders.”
The disappointing 2020 forecast, coming after Ford previously trimmed its 2019 outlook, is a blow for Hackett, who took the helm in May 2017.
He has been asking investors to be patient with a restructuring that has seen the formation of a wide-ranging alliance on commercial, electric and autonomous vehicles with Volkswagen AG <VOWG_p.DE> and the sale of its money-losing operations in India to a venture controlled by India’s Mahindra & Mahindra.
But by Ford’s own accounting, the restructuring is far from complete. It has booked $3.7 billion of the projected $11 billion in charges it previously said it would take, and expects to book another $900 million to $1.4 billion this year.
For the fourth quarter of 2019, Ford reported a net loss of $1.7 billion, or 42 cents a share, compared with a loss of $100 million, or 3 cents a share, a year earlier.
The quarter included a loss of $2.2 billion due to higher contributions to its employee pension plans, something it disclosed last month.
Revenue in the quarter fell 5% to $39.7 billion, above the $36.5 billion Wall Street had expected.
Ford’s adjusted free cash flow fell 67% in the fourth quarter to $500 million, including the $600 million cost of bonuses related to a new labor deal with the United Auto Workers union. The UAW deal also played a role in driving North American automotive profit margins down to 2.8% in the fourth quarter.
Ford said its operating losses in China last year totaled $771 million, including a loss of $207 million in the fourth quarter. It lost $1.5 billion in 2018. Ford’s market share in China in the fourth quarter fell to 2% from 2.3% last year.
In December, Ford said it would halve its operating loss in 2019 and nearly halve it again in 2020, followed by further improvement in 2021.
However, that forecast was before the appearance of the fast-spreading coronavirus and its crippling effects on China’s economy.
Ford’s China sales fell about 15% in the fourth quarter and 26% for the year as it continued to lose ground in its second-biggest market. Ford has been struggling to revive sales in China since its business began slumping in late 2017.
Detroit rivals General Motors Co and Fiat Chrysler Automobiles are scheduled to report their results on Wednesday and Thursday, respectively.
(Reporting by Ben Klayman and Paul Lienert; Editing by Tom Brown)
MONTREAL (Reuters) – Airbus <EADSY> sees enough demand for its wide-bodied A330neo passenger jet to keep production stable, Chief Commercial Officer Christian Scherer told Reuters on Wednesday.
With some airlines seen unlikely to take delivery of all the jets they have ordered, there has been speculation Airbus would have to trim production of the latest version of its most profitable long-range jet despite a recent flurry of new sales.
“Considering the demand I see on the A330neo I see no need to cut production levels,” Scherer told Reuters on the sidelines of an Air Canada <AC.TO> event in Montreal.
“Production is stable on the A330.”
Last year, Airbus secured 99 firm orders for the A330neo including 40 to an unidentified buyer in December.
Scherer said Airbus is also progressing toward reducing costs on its smallest jet, the A220. The company is targeting a double-digit percentage reduction in production costs.
(Reporting by Allison Lampert in Montreal; Editing by Matthew Lewis)
The H-47 Chinook offers the German Armed Forces a highly modern, proven and capable multi-mission helicopter
German industry will benefit from opportunities to work on the Chinook as well as opportunities across the Boeing enterprise
BERLIN, Germany, 14 January 2019 – Boeing [NYSA: BA] has submitted its response to the STH invitation to tender for Germany’s New Heavy Lift Helicopter program, also known as Schwerer Transporthubschrauber (STH). The response was submitted yesterday, 13 January.
The STH invitation to tender was issued on 24 June 2019 by the German procurement authority, specifically, the Federal Office of Equipment, Information Technology and In-Service Support of the Bundeswehr (BAAINBw). A contract award is expected in 2021 for the acquisition of 44 to 60 aircraft, including sustainment and training.
“We’re pleased to have submitted our response and look forward to working with the BAAINBw and German industry to bring the best value proposition to the German Bundeswehr,” said Michael Hostetter, vice president of Boeing Defense, Space & Security in Germany. “The H-47 Chinook is a one of a kind platform capable of performing missions that other helicopters cannot. It is a proven multi-mission heavy lift helicopter with advanced technology that meets the German requirements.”
Today, there are more than 950 Chinook aircraft operating in 20 countries, including eight NATO member countries (the Netherlands, Italy, Greece, Spain, Turkey, UK, Canada, and the United States). The Chinook will provide immediate interoperability to Germany while meeting a wide range of mission needs. As the world’s most proven heavy lift helicopter, the Chinook has a track record of on-time delivery and first time quality, with the lowest operating and acquisition costs and a technology roadmap that will keep it relevant for decades to come.
“We are committed to having the sustainment and training as well as parts of the production done in Germany,” said Dr. Michael Haidinger, president of Boeing Germany. “We will continue to build on and expand our Germany Industry Team for the H-47 Chinook Schwerer Transporthubschrauber competition. In addition, we are committed to bringing high end engineering and production opportunities from across the Boeing enterprise to German industry.”
BERLIN (Reuters) – Luxury German carmaker Daimler <DDAIF> and Volvo Cars, owned by China’s Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources.
The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody.
A Daimler spokesman said the company’s cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further.
Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs.
In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines.
The Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains.
Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China.
Geely bought Volvo Cars in 2010 from Ford Motor Co <F.N>, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands.
Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely’s Lynk brand. Both companies share and develop common vehicle platforms.
(Reporting by Emma Thomasson and Georg Merziger; editing by Jason Neely)
Japanese regional operator starts fleet replacement with eco-responsible turboprop aircraft
World number one regional aircraft manufacturer ATR today delivered the first of two ATR 42-600 aircraft to Hokkaido Air System Co., Ltd (HAC), a JAL Group Company. This delivery marks the first step in HAC’s replacement of its Saab 340 fleet. The delivery of this aircraft will ensure that essential regional air connectivity in Hokkaido can continue.
The ATR 42-600 will offer HAC increased capacity for the same operating costs – generating opportunities for the airline to increase revenues. It will also provide HAC’s passengers with a modern, comfortable cabin featuring latest generation 18”-wide seats as well as more space for luggage in the overhead bins.
Tetsu Ohori, Chief Executive Officer of HAC said: “Today is a long-awaited day for us at Hokkaido Air System, and becomes a memorable day, marking a new chapter in our history. We have so many tourists who enjoy the fantastic ‘Mother Nature’ of Hokkaido. In winter, the great nature turns her face with severe cold and heavy snow. Even under such hard conditions, this ATR 42 will perform well and make our new business a success. I’m really looking forward to showing this wonderful aircraft to everyone in Hokkaido as soon as possible.”
ATR Chief Executive Officer Stefano Bortoli remarked: “Our aircraft makes perfect sense for the Japanese market. Japanese passengers, who are known to demand the very best in terms of comfort and eco-responsibility, will appreciate both the aircraft’s reduced emissions and modern comfortable cabin. This, plus the unbeatable economics and the need to maintain essential regional connectivity in Japan demonstrates why we are increasing our presence in the country.”
ATR’s market estimates forecast that around 900 30-50 seat aircraft will soon need to be replaced as older and inefficient aircraft come to the end of their lives. The ATR 42-600 is part of ATR’s unique family of regional aircraft, including the ATR 72-600, the ATR 42-600S (Short Take-Off and Landing) and the ATR 72-600F, the only brand new regional freighter. Together, they represent the ideal and modern solution to ensure that essential connectivity is maintained for local communities all over the world, while flying sustainably, emitting up to 40% less CO2 compared with regional jets.
About Hokkaido Air System Co., Ltd Established on 30 September, 1997, Hokkaido Air System began operations on 28 March.1998, with Japan Airlines (57.3%), Hokkaido government (19.5%), Sapporo city (13.5%) as major shareholders. Hokkaido Air System operates three aircraft (SAAB340B-WT) and 26 daily departures on five routes; between Sapporo-Okadama and Rishiri/Kushiro/Hakodate/Misawa, Hakodate and Okushiri, based in Sapporo-Okadama airport.
JetBlue Founder David Neeleman Selects Salt Lake City as Headquarters for New Airline
America’s newest and perhaps most innovative airline does not yet have a name, or any airplanes. But it now has a headquarters.
David Neeleman’s startup will be based in Salt Lake City, where it plans to spend a capital investment of $3.2 million and create nearly 400 jobs over the next five years, according to local authorities. In return, the state offered tax rebates worth as much as about $1.1 million over five years.
“There’s a super strong technology base, and lower cost of living than California and some of the coastal areas,” Lukas Johnson, the airline’s chief commericial said in an interview. “We want to focus more on the technology aspect of the transportation side, and it makes a lot of sense. The tech sector is booming out here.”
