Tag: impact (Page 3 of 6)

Ryanair Orders 75 More Boeing 737 MAX Jets

December 6, 2020 / WIL BALDWIN

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.

COVID-19 Impacts KiwiRail’s Fiscal Year 2020 Result

November 29, 2020 / WIL BALDWIN

The COVID-19 pandemic had a significant impact on KiwiRail’s bottom line for the past financial year, but rigorous operational changes and cost savings measures have helped stabilise the business, KiwiRail chairman Brian Corban says.

KiwiRail Holdings Limited, New Zealand’s national rail provider, which also operates the Interislander ferry service across Cook Strait, today reported an operating surplus of $40 million¹in FY20 for the KiwiRail Group, down $15 million compared with FY19².

FY20 was also notable for the additional $1.2 billion of Crown funding allocated in Budget 2020, including $400 million to progress the iReX project to replace the three ageing Interislander ferries with two brand new ones. When they arrive, they will be the first new purpose-built ferries in Interislander’s fleet for 25 years. The Budget 2020 allocation also allows the purchase of new locomotives.

Mr Miller explains that COVID-19 interrupted progress on some significant projects including the rejuvenation of the North Auckland Line where $35.5 million of $164.5 million allocated by the Provincial Growth Fund was spent during the year. More than 400 staff, contractors and sub-contractors are at work building tracks, replacing bridges and making tunnels suitable for wagons carrying hi-cube containers in Northland.

Other highlights during the year included the full return to service of the Main North line through Kaikōura and, in Wellington, work advanced on upgrading the metro network including construction starting on a second 2.7km track between Trentham and Upper Hutt.

¹ Operating surplus represents earnings before depreciation & amortisation, interest, impairment, capital grants and fair value changes.

² FY19 Operating surplus of $55m excludes impact of non-recurring items ($29m Holidays Act remediation).

Boeing Says More Freighters Needed to Support Global Supply Chains

November 17, 2020 / WIL BALDWIN

Boeing [NYSE: BA] today released its biennial World Air Cargo Forecast (WACF), reflecting COVID-19 impacts and opportunities as well as substantial long-term demand for freighters over the next two decades.

Enabled by a rebound in global trade and long-term growth, the WACF forecasts demand for 2,430 freighters over the next 20 years, including 930 new production freighters and 1,500 freighters converted from passenger airplanes.

According to the new forecast, world air cargo traffic will grow at 4% per year over the next 20 years. This growth is influenced by trade and growing express shipments to support expanding e-commerce operations. With these developments and the proven need for dedicated freighter capacity to support the world’s transportation system, the global air cargo fleet is expected to grow by more than 60% through 2039.

“Freighter operators have been in a unique position in 2020 to meet market requirements for speed, reliability and security, transporting medical supplies and other goods for people and communities around the world,” said Darren Hulst, vice president of Commercial Marketing. “Looking ahead, dedicated freighters will be even more critical to compete in air cargo markets; they carry more than half of air cargo traffic, and airlines operating them earn nearly 90% of air cargo industry revenue.”

In addition to projecting long-term demand for freighters, the WACF provides insights into air cargo performance during the pandemic, including the following:

– E-commerce, which was growing at double-digit rates prior to the pandemic, has accelerated its impact on the air cargo market as more businesses shifted to online selling platforms. Year to date through September, express carriers increased traffic by 14%

– Passenger belly cargo, which in 2019 accounted for about half of the world air cargo capacity, was significantly reduced when airlines parked thousands of planes. Freighter operators responded by operating above normal utilization levels, and traffic for all-cargo carriers grew 6%

– So far in 2020, approximately 200 airlines used more than 2,000 passenger widebody aircraft for cargo-only operations to generate cash flow and support global supply chains. These passenger freighters have taken up some of the capacity shortfall and, in some cases, generated quarterly profits for carriers despite minimal passenger operations

Boeing Announces Third-Quarter Deliveries

October 13, 2020 / WIL BALDWIN

The Boeing Company [NYSE: BA] announced today major program deliveries across its commercial and defense operations for the third quarter of 2020.

“We continue to work closely with our customers around the globe, understanding their near-term and longer term fleet needs, aligning supply and demand while navigating the significant impact this global pandemic continues to have on our industry,” said Greg Smith, Boeing executive vice president of Enterprise Operations and chief financial officer. “We’re taking actions to resize, reshape and transform our business to preserve liquidity, adapt to the new market reality and ensure that we deliver the highest standards of safety and quality as we position our company to be more resilient for the long term. Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability as we adapt and rebuild stronger for the other side of the pandemic.”

Major program deliveries during the third quarter were as follows:

Boeing to Consolidate 787 Production in South Carolina in 2021

October 1, 2020 / WIL BALDWIN

– Single site to improve operational efficiency as company adapts to market downturn and positions for recovery and long-term growth

– 787 production to continue in Everett, Wash. until program begins building at the previously announced rate of six airplanes a month in 2021

As the airline industry continues to address the impact of COVID-19, The Boeing Company [NYSE: BA] said today it will consolidate production of 787 jets at its facility in North Charleston, S.C., starting in mid-2021, according to the company’s best estimate. The decision comes as the company is strategically taking action to preserve liquidity and reposition certain lines of business in the current global environment to enhance efficiency and improve performance for the long-term.

While Boeing’s versatile 787 family has outperformed other widebody airplanes during the challenging market downturn, its production system has been adjusted to accommodate the current difficult market environment while positioning the 787 family to ramp up production as air travel increases.

“The Boeing 787 is the tremendous success it is today thanks to our great teammates in Everett. They helped give birth to an airplane that changed how airlines and passengers want to fly. As our customers manage through the unprecedented global pandemic, to ensure the long-term success of the 787 program, we are consolidating 787 production in South Carolina,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes.

“Our team in Puget Sound will continue to focus on efficiently building our 737, 747, 767 and 777 airplane families, and both sites will drive Boeing initiatives to further enhance safety, quality, and operational excellence.”

The company began assembling 787-8 and 787-9 airplanes at its Everett site in 2007, and brought the North Charleston facility on line as a second final assembly line in 2010. However, only the North Charleston site is set up to build the larger 787-10 model. Production of the smaller 787 models will continue in Everett until the program transitions to the previously-announced production rate of six airplanes a month in 2021.

In July, Boeing announced an in-depth study into the feasibility of producing 787s at a single location. The review examined the impacts and benefits to Boeing customers, suppliers, employees and the overall health of the production system. The 787 study is part of an enterprise review underway to reassess all aspects of Boeing’s facility footprint, organizational structure, portfolio and investment mix, and supply chain health and stability.

This analysis confirmed the feasibility and efficiency gains created by consolidation, which enables the company to accelerate improvements and target investments to better support customers.

“We recognize that production decisions can impact our teammates, industry and our community partners,” said Deal. “We extensively evaluated every aspect of the program and engaged with our stakeholders on how we can best partner moving forward. These efforts will further refine 787 production and enhance the airplane’s value proposition.”

Boeing said it is assessing potential impacts to employment in Everett and North Charleston and will communicate any changes directly to its employees.

Delta Waives Change Fees for Travelers Affected by Typhoon Haishen

September 6, 2020 / WIL BALDWIN

Delta teams in the airline’s Operations and Customer Center are monitoring the impact of Typhoon Haishen.

Due to Haishen’s projected forecast, Delta has issued a travel waiver for flights to and from Seoul, South Korea. This waiver allows customers with flexibility in their travel plans to make a one-time change to their itinerary without incurring a change fee.

Customers are encouraged to check their flight status on Delta.com or the Fly Delta mobile app. Customers can also get updates sent directly to their mobile device or by email.

Embraer Adjusts Corporate Structure in Response to COVID-19 and Boeing Deal Collapse

September 6, 2020 / WIL BALDWIN

Embraer announced today a 4.5% adjustment to its global workforce, which corresponds to approximately 900 employees in Brazil. The measure stems from the impacts caused by the COVID-19 pandemic on the global economy and the cancellation of the company’s partnership with Boeing. The objective is to ensure Embraer’s sustainability and engineering capacity.

The pandemic particularly affected Embraer Commercial Aviation, which experienced a 75% reduction in aircraft deliveries during the first half of 2020 as compared to the same period last year.

The situation worsened as a result of the duplication of structures associated with the carve out of the company’s commercial aviation business in preparation for the partnership which was terminated at the initiative of Boeing, as well as the expectation that the air transport sector will not recover in the short- or medium-term.

Since the beginning of the pandemic, Embraer has adopted a series of measures to preserve jobs, including collective vacations, reduced working hours, furloughs, paid leave, and three voluntary dismissal plans (VDP). The company has also reduced face-to-face work at its industrial plants with the aim of ensuring the health of employees and business continuity. Around 1,600 employees chose to participate in the VDPs in Brazil.

The company recognizes and appreciates the commitment of those professionals who are leaving the organization and counts on the commitment of all employees to overcome the current crisis and maintain the company’s competitiveness in the global market.

Airbus Adds More Deliveries, Breaks 3 Month Order Drought

August 6, 2020 / WIL BALDWIN

PARIS (Reuters) – Airbus delivered 49 aircraft in July, up from 36 in June as it continues to recover from a slump in deliveries during this year’s coronavirus lockdowns, the company said on Thursday.

The aircraft were all narrow-body jets, highlighting a dearth of demand for the industry’s biggest models, which last month prompted Airbus to trim A350 production for a second time.

The month’s deliveries included 47 A320neo-family jets.

Airbus also scored its first orders in three months as it sold two A320neos to an undisclosed customer and two A321neos to Lufthansa Technik, the modification and repairs business of German carrier Lufthansa <LHA.DE>.

So far in 2020, Airbus has delivered 245 jets and sold 369, or 302 after cancellations.

Demand for aircraft has been crippled by the coronavirus crisis and its heavy impact on air travel.

Airbus is boosting deliveries on a monthly basis despite the industry’s worst crisis as it negotiates deals with airlines.

But although deliveries are rising compared to the trough seen in April, several bankers and analysts have questioned how many of the aircraft are being placed into service as airlines struggle to save cash. Some are said to go straight to storage.

Airbus has issued default notices and threatened to sue airlines that refuse to collect planes already built while showing flexibility in deferring jets not yet in the factory.

(Reporting by Tim Hepher; Editing by Keith Weir)

An Airbus A320neo aircraft is pictured during a news conference to announce a partnership between Airbus and Bombardier on the C Series aircraft programme, in Colomiers near Toulouse, France

Amtrak Supplemental Funding Needed to Maintain Minimum Service Levels

May 27, 2020 / WIL BALDWIN

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.

ATR Releases 2019 Results

May 14, 2020 / WIL BALDWIN

ATR performed well in 2019. We received 79 orders and delivered 68 aircraft for a book-to-bill of more than one. The turnover for the year was $1.6 billion and was boosted by a strong performance from our Services.

In 2020, the aviation industry is facing an unprecedented challenge that will last well beyond the current year. It is too early to understand the full impact on our backlog, however we have not had any cancellations to date.

Currently, 40% of ATR aircraft around the world continue to fly, playing a vital role in humanitarian missions and the transportation of essential goods to the remotest areas.

Naturally, during this time, ATR continues to support airlines 24/7.

Cargo is becoming increasingly important and we have developed a solution allowing airlines operating ATR aircraft to quickly and temporarily convert to a light freighter configuration, allowing them to unlock potential operations.

During this crisis, ATR is not standing still. While our major concern is always the safety and health of our employees and subcontractors, our manufacturing sites have never closed, and we have implemented a very strict health protocol that has allowed us to continue critical activities. We remain committed to the delivery of our new programmes, the ATR 72-600F freighter and the ATR 42-600 STOL. The first deliveries of our new cargo variant will happen this year.

ATR believes that regional aviation will resume its activities faster than international air traffic, because it will have a huge role to play in the recovery of the global economy, connecting communities around the world with necessary supplies.

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