Bombardier will perform heavy maintenance and refurbish 59 Bombardier-built REGINA commuter trains, improving safety and comfort for every passenger’s journey in Sweden
Latest contract highlights Bombardier’s position as industry-leading mobility services provider in the Swedish market
Mobility technology solution provider Bombardier Transportation announced today that it has signed a new services contract with AB Transitio, Sweden’s rail vehicle leasing company, to perform heavy maintenance and refurbish 59 BOMBARDIER REGINA Electric Multiple Unit (EMU) trains. The contract is valued around SEK 280 million ($30 million US, €27 million euro) over a period of five years. Deliveries of the newly refurbished trains is planned to start in mid-2020 with pre-series deliveries and will continue until mid-2024.
“With this new contract, Bombardier is expanding its services footprint in Sweden by maintaining the REGINA EMU trains operated by regional and private rail authorities, as well as refurbishing these trains to bring safe and reliable service to over millions of passengers across Sweden every year,” said Marina Sundman, Chief Commercial Office, Nordics Region, Bombardier Transportation. “We are proud to deepen our long-term relationship with AB Transitio and we are more committed than ever to delivering our range of service solutions to help customers maximize value from their assets.”
Around 20 years ago, our local teams designed and built these vehicles which are appreciated by the local rail operators. Today, more than 100 REGINA EMU trains operate across Sweden’s rail network in various car configurations, each train having travelled an average of 200.000 km per year in regional and intercity traffic, supporting the public transport authorities from south to the upper north of Sweden.
In addition to undertaking heavy maintenance on 59 REGINA EMU trains (54 trains of 2 cars and 5 trains of 3 cars each), our teams will also be involved in technical and comfort upgrades such as changing interior carpets, exterior paint, passenger seats refurbishment, interior lighting, installing additional pantograph with control equipment and new headlights.
This project marks a milestone in the development of our refurbishment activities and contributes to placing Bombardier as the leader of this market segment in Sweden. Bombardier is an important player in Sweden’s rail industry as a leading supplier of metros, trams, high speed trains, signalling systems and services.
NEW YORK (Reuters) – Mitsubishi Heavy Industries Ltd <MHVYF> is confident that it has the technical and production know-how to build high-tech wings for Airbus SE <EADSY> jetliners, the chief executive of the Japanese conglomerate said on Wednesday.
MHI developed sophisticated production processes at its facility in Nagoya in the process of building wings for the Boeing Co <BA> 787 Dreamliner, Chief Executive Seiji Izumisawa said in an interview.
“We have accumulated expertise in producing aerostructures as a tier 1 supplier, so if the opportunity does present itself we will certainly be willing to consider it,” he said.
It is not yet clear whether Airbus plans to outsource wings on future jets, such as its next-generation single-aisle aircraft, which could come out in about a decade.
Such future work would be important to MHI in part because of Boeing’s decision to bring wing production back in-house on its latest jet, the 777X.
“We do have the capability to produce some pretty complicated components,” said Izumisawa, who said he was involved in developing the 787 wings.
(Reporting by Alwyn Scott; Editing by Sonya Hepinstall)
FILE PHOTO: The logo of Mitsubishi Heavy Industries is seen at the company’s Sagamihara plant in Sagamihara, Japan
WASHINGTON (Reuters) – Southwest Airlines Co <LUV> said Monday it will complete inspections on 38 737 airplanes it acquired from foreign air carriers by Jan. 31 that may not meet all U.S. aviation safety requirements.
The planes are part of 88 pre-owned Boeing <BA> 737 aircraft Southwest bought between 2013 and 2017 from 16 foreign carriers. The speedier checks come after inspections of 39 used planes turned up previously undisclosed repairs and incorrectly completed fixes. Southwest used multiple contractors to conduct the reviews of the planes’ maintenance records when they bought the planes.
“We have a plan in place to inspect the 47 remaining aircraft, nine of which are currently in heavy checks, no later than January 31, 2020 – five months earlier than the original FAA accepted completion date of July 1,” Southwest said in a statement on Monday.
Southwest said its inspections to date “did not stem from any suspected safety concerns with the aircraft.” It added its “continuous assessment of the ongoing inspections has revealed nothing to warrant the expedited timeline” but will meet it nevertheless.
In 2018, Southwest agreed to conduct a complete physical inspection on each of these pre-owned aircraft over a two-year period after a Federal Aviation Administration (FAA) safety inspector in May 2018 discovered discrepancies in records for some of 88 aircraft.
Since then, Southwest said it has completed the nose-to-tail inspection of 41 aircraft without any findings that suggested an “adverse impact on continued safe operation.”
An Oct. 24 memo from H. Clayton Foushee, director of the FAA Audit and Evaluation Office, made public on Monday said the Southwest inspections turned up at least 30 previously unknown repairs and 42 major repairs that were found “not to meet FAA airworthiness requirements.” Some required “immediate corrective action to bring the aircraft back into compliance.”
The memo added “the data collected to date would indicate that a majority of” the planes to be inspected do not meet FAA airworthiness requirements.
The U.S. Senate Commerce Committee noted on Monday that the 2018 discovery prompted a full records review by Southwest Airlines of all 88 aircraft that found 360 major repairs previously unknown to the airline because they were not disclosed in the contractors’ initial review.
Foushee’s memo said Southwest grounded 34 planes in November 2018 for inspections. The committee said as a result some planes were grounded “for immediate maintenance to bring them into regulatory compliance as a result of these newly discovered prior major repairs.”
The FAA then sent an Oct. 29 letter to Southwest seeking additional information about the uninspected planes and questioned whether they suffered specific damage items. It also raised concerns about Southwest’s “slow pace in completing the evaluation of aircraft.”
Senate Commerce Committee Chairman Roger Wicker said in an Oct. 30 letter to the FAA that its concerns about Southwest’s used planes correspond “to concerns that have been brought to my attention by whistleblowers as part of my investigation into aviation safety.”
The committee said the FAA allowed Southwest to continue to operate these aircraft and as a result “Southwest Airlines appears to have operated aircraft in unknown airworthiness conditions for thousands of flights.”
The FAA said Monday that after receiving Southwest’s response it determined the airline has “met the requirements for immediate inspection and risk assessments on these aircraft.”
The FAA added it “is requiring more frequent updates on the progress of completing all the requirements.”
(Reporting by David Shepardson; additional reporting by Tracy Rucinski in Chicago; editing by Jonathan Oatis)
FILE PHOTO: A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California
Nashville, Tennessee, USA, September 10, 2019 – Embraer announced today that Horizon Air, a subsidiary of Alaska Air Group, has selected Embraer Aircraft Maintenance Services (EAMS) in Nashville, Tennessee, as the exclusive heavy maintenance provider for the company’s fleet of 30 Embraer E175 aircraft.
The multi-year agreement includes airframe maintenance, modifications and repair services provided by Embraer’s portfolio of solutions TechCare. Fittingly, the deal was signed at the Regional Airline Association’s 44th Annual Convention that took place in EAMS’s hometown of Nashville, Tennessee.
“We are delighted to further expand our relationship with Horizon Air, and we are honored that our valued customer has selected EAMS as their home for Embraer heavy maintenance,” said Phil Bathurst, Managing Director, Embraer Aircraft Maintenance Services.
“We introduced our first E175s in 2017. Now, with 30 E-Jets in operation, we are ready to expand our great partnership with Embraer, as they conveniently accommodate our heavy maintenance needs in Nashville, Tennessee,” said George Knobloch, Vice President of Maintenance and Engineering at Horizon Air.
Follow us on Twitter: @Embraer
About Embraer Aircraft Maintenance Services (EAMS)
With convenient locations in Nashville, TN and Macon, GA, EAMS is the world’s center of excellence for Embraer ERJ and E-Jet heavy maintenance and component repair. EAMS has performed maintenance on over 4,000 aircraft since 2008, of which more than 2,500 were heavy maintenance checks. The two facilities offer 15 hangar bays with more than 600 highly skilled technicians and have more than 3,500 components part numbers on their repair capabilities. EAMS is a Certified Repair Station under the following regulatory authorities: USA (FAA), Europe (EASA), Australia (CASA), Mexico (DGAC), Ecuador (DGAC), El Salvador (AAC), and Colombia (UAEAC).
TOKYO, Aug 30 (Reuters) – Japan’s military has asked for an eighth straight annual increase in defence spending to help pay for U.S.-made interceptor missiles, stealth fighters, and other equipment it wants to counter threats from North Korea and China.
The Ministry of Defence budget proposal released Friday calls for spending to increase 1.2 percent to a record 5.32 trillion yen ($50.48 billion) in the year starting April 1. Finance ministry officials will scrutinise the request before it is approved by Prime Minister Shinzo Abe’s cabinet.
Already one of the world’s biggest military spenders despite a constitution that forbids the possession of weapons to attack other countries, Japan has increased military outlays by a tenth over the past seven years. That growth is being driven by alarm over military build ups by its neighbours.
Japan’s spending, much of it on advanced weapons from the United States, has benefited the likes of Lockheed Martin Corp and Raytheon Co, and worried local contractors such as Mitsubishi Heavy Industries who have seen their share of defence spending shrink.
U.S. President Donald Trump has thanked Japan for buying the expensive U.S. equipment, helping curtail criticism of Japan amid trade tensions between Tokyo and Washington.
For the next fiscal year, Japan’s defense officials have asked for 115.6 billion yen to buy nine Lockheed Martin F-35 stealth fighters, including for the first time six short take-off and vertical landing (STOVL) B variants that it wants to operate from aircraft carriers. That purchase will help Japan project military power by extending the range at which the country’s Self Defense Forces can operate.
The defence ministry also wants 116.3 billion yen to bolster ballistic missile defences (BMD), including money for a new generation of interceptor missiles designed by Raytheon to shoot down incoming warheads in space. It also wants funds for vertical launch systems for ships and two planned ground-based Aegis Ashore radar missile tracking stations.
($1 = 105.3900 yen)
(Reporting by Tim Kelly; Editing by Michael Perry)
SHANGHAI (Reuters) – German auto maker Daimler AG <DAIGn.DE> plans to build Mercedes Benz-branded heavy trucks in China by revamping truck plants owned by its local joint venture, according to a document seen by Reuters and two sources familiar with the matter.
The plan will deepen the alliance between Daimler and its Chinese truck JV partner, Beiqi Foton Co Ltd <600166.SS>, and comes after the purchase of a 5% stake in Daimler last month by its Mercedes Benz passenger car partner, Beijing Automotive Group Co Ltd (BAIC), Foton’s parent group.
“Localization of Mercedes Benz-branded trucks had been planned years before, so it has nothing to do with BAIC Group’s recent stake purchase in Daimler,” one source said.
In 2016, Daimler’s then head of its truck business told German media that it planned to make Mercedes Benz-branded Actros heavy trucks in China by the end of the decade. No details of the plan has since been reported or announced.
Under the plan, Beijing Foton Daimler Automotive (BFDA) will add Actros to its production lines which are mainly used to make Auman trucks, the joint venture’s sole truck brand, the sources said.
The JV plans to revamp its No.3 plant, which will have an annual capacity of 60,000 heavy trucks, and expand capacity at its No.2 plant to 100,000 units from 60,000 now, according to a document on the JV’s website. The value of the investment was not known.
The No.3 plant will build both Actros and Auman trucks, said the sources, who declined to be identified because the plan had not been made public.
Daimler’s office in China did not immediately respond to phone calls seeking comment. Foton declined to comment.
All Mercedes Benz trucks currently sold in China are imported and priced significantly higher than domestically made Auman trucks.
Founded in 2012, the truck joint venture sold just over 100,000 units in China last year. Daimler is seeking to further develop its truck business with Foton, but the lack of a solid supply chain in China remains an obstacle, the sources said.
“One of the biggest challenges is to build up a good local supply chain, as many heavy truck components for Mercedes Benz trucks cannot be locally sourced for now,” the second source said.
China’s heavy truck market has fared better than the overall auto market this year, thanks to a growing e-commerce industry and improvements in traffic and logistics infrastructure.
China sold 732,000 heavy trucks in the first seven months this year, down 1.4% from the same period a year earlier, while the overall auto market dropped 13.5%.
Other major heavy truck makers in China include FAW, Dongfeng and Sinotruk.
(Reporting by Yilei Sun and Brenda Goh in Shanghai; Editing by Miyoung Kim and Darren Schuettler)
MHI now positioned to transform and lead the underserved regional jet business, with bolstered customer support services
Key step in MHI’s strategy of expanding its aircraft business globally, with a mid-term focus on North America
Completes Bombardier’s aerospace transformation and refocus on business aviation
Mitsubishi Heavy Industries, Ltd (MHI) (TOKYO:7011) and Bombardier Inc (TSX: BBD.B) announced today they have entered into a definitive agreement, whereby MHI will acquire Bombardier’s regional jet program for a cash consideration of $550 million USD, payable to Bombardier upon closing, and the assumption by MHI of liabilities amounting to approximately $200 million USD. Under the agreement, Bombardier’s net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $180 million USD, will be transferred to MHI.
Pursuant to the agreement, MHI will acquire the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, including the related services and support network located in Montréal, Québec, and Toronto, Ontario, and its service centres located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.
This acquisition is complementary to MHI’s existing commercial aircraft business, in particular the development, production, sales and support of the Mitsubishi SpaceJet commercial aircraft family. The maintenance and engineering capabilities of the CRJ program will further enhance critical customer support functions, a strategic business area for MHI in the pursuit of future growth.
Seiji Izumisawa, President & CEO of Mitsubishi Heavy Industries Ltd., commented: “As we outlined during the recent Paris Air Show, we are working hard to ensure that we provide new profit potential for airlines and set a new standard for passenger experience. This transaction represents one of the most important steps in our strategic journey to build a strong, global aviation capability. It augments these efforts by securing a world-class and complementary set of aviation-related functions including maintenance, repair and overhaul (MRO), engineering and customer support.”
Izumisawa concluded, “The CRJ program has been supported by tremendously talented individuals. In combination with our existing infrastructure and resources in Japan, Canada and elsewhere, we are confident that this represents one effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family. MHI has a decades-long history in Canada, and I hope this transaction will result in the expansion of our presence in the country, and will represent a significant step in our growth strategy.”
“We are very pleased to announce this agreement, which represents the completion of Bombardier’s aerospace transformation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We are confident that MHI’s acquisition of the program is the best solution for airline customers, employees and shareholders. We are committed to ensuring a smooth and orderly transition.”
Bellemare continued: “With our aerospace transformation now behind us, we have a clear path forward and a powerful vision for the future. Our focus is on two strong growth pillars: Bombardier Transportation, our global rail business, and Bombardier Aviation, a world-class business jet franchise with market-defining products and an unmatched customer experience.”
The CRJ production facility in Mirabel, Québec will remain with Bombardier. Bombardier will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the second half of 2020, following the delivery of the current backlog of aircraft.
Bombardier will also retain certain liabilities representing a
portion of the credit and residual value guarantees totaling
approximately $400 million USD. This amount is fixed and not subject to
future changes in aircraft value, and payable by Bombardier over the
next four years.
The transaction is currently expected to close during the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.
The agreement contemplates a reverse break fee payable by MHI under certain circumstances.
About MHI
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, is one of the world’s leading industrial firms with 80,000 group employees and annual consolidated revenues of around US$38 billion. For more than 130 years, the company has channeled big thinking into innovative and integrated solutions that move the world forward. MHI owns a unique business portfolio covering land, sea, sky and even space. MHI delivers innovative and integrated solutions across a wide range of industries from commercial aviation and transportation to power plants and gas turbines, and from machinery and infrastructure to integrated defense and space systems.
With over 68,000 employees, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries as well as a broad portfolio of products and services for the business aviation, commercial aviation and rail transportation markets. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
Bombardier and CRJ are trademarks of Bombardier Inc. or its subsidiaries
FLINT, Mich. (Reuters) – General Motors Co president Mark Reuss said on Wednesday that the automaker is investing about $150 million at its Flint Assembly plant in Michigan, to boost production of heavy duty trucks by another 40,000 vehicles a year.
Reuss announced the investment at the Flint truck assembly plant wearing a United Auto Workers pin.
The Detroit automaker announced in February it was adding 1,000 jobs in Flint to build a new generation of heavy-duty pickup trucks.
GM did not say that the latest investment would add more jobs at the plant, but Reuss said there could be opportunities to add workers as the launch of the automaker’s new trucks progresses.
FILE PHOTO: A Chevrolet 2020 heavy-duty pickup truck is seen at the General Motors Flint Assembly Plant in Flint
GM has been under pressure from U.S. President Donald Trump and lawmakers of both parties to add jobs in the United States after it said last November it would idle a small car assembly plant in Lordstown, Ohio, and had no new products for three other U.S. manufacturing plants.
The Flint investment will include upgrades to the plant’s conveyors and other new tooling, and will be completed in the first half of 2020. GM has invested more than $1.6 billion in the plant since 2013.
Last month, GM said it would invest $24 million to increase truck production at its assembly plant in Fort Wayne, Indiana, which makes Chevrolet Silverado and GMC Sierra models.
FILE PHOTO: The frames of Chevrolet 2019 heavy-duty pickup trucks sit on the assembly line in the paint department at General Motors Flint Assembly Plant
Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000.
GM’s Chevrolet and GMC brands have long trailed Ford Motor Co’s F-series heavy duty trucks in the lucrative segment. The new Chevrolet and GMC heavy duty trucks have been re-engineered to tow heavier trailers, and keep pace in what has become an arms race among the Detroit Three automakers to claim superior torque and towing capability.
(Reporting by Joe White in Detroit and Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila and Nick Zieminski)
FILE PHOTO: A General Motors Co. assembly worker does quality control checks on the paint of Chevrolet 2019 heavy-duty pickup trucks in Flint
Bombardier has recently stated it would explore strategic options for the CRJ Program. From time to time, this may lead to discussions with potential counterparties. While Bombardier does not generally comment publicly on market speculation or rumors, in light of recent media reports, Bombardier believes it is prudent to advise stakeholders that it is in discussions with Mitsubishi Heavy Industries, Ltd. with respect to its CRJ Program. We will not further comment on the nature of the discussions. Before any agreement can be reached further review and analysis by Bombardier management and approval by Bombardier’s Board of Directors are required, and Mitsubishi Heavy Industries, Ltd. must complete its due diligence review and own analysis and approval process, which are outside of Bombardier’s control. There can be no assurance that any such discussions will ultimately lead to an agreement.
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.
