The Helicopter Company (THC), which is fully owned by the Public Investment Fund (PIF) of Saudi Arabia, today announced that it has signed a purchase agreement with Airbus Helicopters to purchase 10 H125 helicopters. The deal comes as part of THC’s commitment to further expand its fleet and introduce new services that fulfill market demand and support the development of the Kingdom’s wider aviation sector.
Considered a multi-task aircraft, the Airbus H125 can carry up to six passengers and be easily reconfigured to suit varying requirements. THC will utilize the new additions to its fleet to roll out new services related to scenic tourism and aerial work such as filming, banner towing, and surveying.
Commenting on the purchase agreement, Capt. Arnaud Martinez, CEO of THC said: “By signing this agreement, THC has taken a massive step in expanding its fleet and implementing its ambitious operational plan. We are proud to be contributing to the advancement of Saudi Arabia’s tourism and aviation industries through our innovative air transport services that guarantee passengers a one-of-a-kind experience to relish the beauty of the Kingdom from above. I would like to thank our partners at Airbus Helicopters who have ensured we have reached an agreement that matches our requirements, and we look forward to furthering our collaboration in the near future. I would also like to extend our thanks to PIF for their enduring support since our founding as we work together to advance Saudi Arabia’s aviation industry.”
PIF established THC as part of its strategy to activate new sectors in Saudi Arabia that support the realization of Vision 2030 and generate long-term commercial returns. The Kingdom’s first local commercial helicopter operator, THC has been offering private flights since mid-2019 and is now expanding its services with the addition of the H125 to its fleet. This new agreement will contribute to driving the development of Saudi Arabia’s nascent and increasingly dynamic tourism and aviation industries and support the integration of each sector’s respective value chains.
(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
SEOUL (Reuters) – South Korea’s largest airline, Korean Air, plans to sell around 1 trillion won ($816.55 million) in new shares in its biggest rights issue in 20 years to raise funds amid mounting strains in the industry due to the pandemic.
Korean Air is the latest carrier to raise funds as travel restrictions imposed by governments around the world have led to airlines grounding their fleets worldwide.
Korean Air separately plans to receive 1.2 trillion won in support from South Korean state-owned banks.
About 79 million newly issued shares, to be listed on July 29, will be first bought by the carrier’s shareholders, including holding company Hanjin Kal which has a 30% stake in the carrier, followed by general public, the company said in a statement.
“Korean Air will continue to carry out self-rescue measures to overcome the dismal business environment due to COVID-19,” the company said.
Korean Air had 70% or more of its employees working in South Korea take a six-month leave of absence in April. Woo Kee-hong, the airline’s president, warned in March that the coronavirus outbreak could threaten its survival if the situation becomes prolonged.
Korean Air also picked last month a preferred bidder to buy its real estate and non-core assets, which some analysts value at about 400-500 billion won.
Korean Air had a debt-to-equity ratio of about 870% as of end-2019. It is expected to announce January-March quarter earnings later this week.
A spokeswoman for Korean Air said it was operating just 10% of its previously planned international schedule, and 60% of its domestic schedule.
The airline said it expects its June international schedule to rise to 20% of its previous plan, as it announced the addition of more international passenger flights to prepare for increased travel demand once COVID-19 restrictions are relaxed.
United Airlines Holdings Inc said earlier this month it plans to raise $2.25 billion through a bond offering, after announcing a public offering to raise more than $1 billion in April.
In March, Singapore Airlines said it would issue S$5.3 billion ($3.70 billion) in new equity and up to S$9.7 billion($6.78 billion) via mandatory convertible bonds in a rights issue backed by state investor Temasek Holdings.
($1 = 1,224.6700 won)
(Reporting by Joyce Lee; Editing by Simon Cameron-Moore and Louise Heavens)
Korean Air’s passenger planes are parked following outbreak of COVID-19, at Incheon International Airport
Embraer (NYSE: ERJ) delivered a total of 14 jets in the first quarter of 2020, of which five were commercial aircraft and nine were executive jets (five light and four large). As of March 31st, the firm order backlog totaled USD 15.9 billion.
Historically, Embraer seasonally has fewer deliveries during the first quarter of the year, and in 2020 in particular, the commercial aircraft deliveries in the first quarter were also negatively impacted by the conclusion of the separation of Embraer’s Commercial Aviation unit in January.
During the first quarter, Embraer Executive Jets announced that the new Phenom 300E was granted its Type Certificate by ANAC (National Civil Aviation Agency of Brazil), EASA (European Union Aviation Safety Agency) and the FAA (Federal Aviation Administration). The new Phenom 300E is the recently enhanced version of the Phenom 300 series, which was the most delivered business jet series in the 2010s.
Also in this period, Emgepron, a Brazilian state-owned company linked to the Ministry of Defense through the Brazilian Navy Command, and Águas Azuis, a company created by thyssenkrupp Marine Systems, Embraer Defense & Security and Atech, signed the contract to build four state-of-the-art Tamandaré Class Ships, with deliveries scheduled between 2025 and 2028.
LONDON (Reuters) – Irish airline Aer Lingus said it was reviewing its social distancing procedures after a flight on Monday was packed with passengers.
European flights have all but come to a standstill during the coronavirus pandemic with only a few services operating for essential travel such as people going to work or being repatriated, or for cargo.
While there is no visibility on when travel restrictions will ease, airlines are considering how to safely restart services and give passengers confidence to fly.
Aer Lingus, owned by IAG <IAG.L>, said it would consider how it operates after its Belfast to London Heathrow flight on Monday had “unexpectedly high loads” and that due to the level of the demand for the route, it could need to make changes.
“Aer Lingus is reviewing its processes and procedures applicable to the operation of this service,” an Aer Lingus spokeswoman said, adding that safety was its top priority.
Some airlines have discussed leaving middle seats empty on flights to enable social distancing, while other airlines such as Germany’s Lufthansa <LHA.DE> and Hungary’s low cost airline Wizz Air <WIZZ.L> have made it compulsory for passengers to wear face masks on flights.
(Reporting by Sarah Young and Ian Graham; Editing by Kirsten Donovan)
FILE PHOTO: The Aer Lingus EI-DER Airbus A320 makes its final approach for landing at Toulouse-Blagnac airport
SINGAPORE (Reuters) – Competition is cranking up in the world of turboprops.
For years turboprops were an ignored corner of the aircraft industry, accounting for about 120 aircraft a year compared with the more than 1,000 jets made by giants Airbus and Boeing.
But growing rivalries in the turboprop business cut through a Singapore Airshow depleted by coronavirus this week.
While intercontinental jet travel is vulnerable to trade wars and disruptions such as epidemics, regional development in archipelago nations like Indonesia is favouring the turboprop.
The market has been dominated for years by Europe’s ATR, jointly owned by Airbus and Italy’s Leonardo, which enjoys a relatively undisturbed lion’s share of the market with a small slice also held by the Canadian-owned De Havilland Dash 8.
But the commercial arm of Brazil’s Embraer is sharpening a pitch to return to the market and Chief Executive John Slattery told Reuters he expected a decision by the end of the year.
“We should be positioned in the mid-to-late fourth quarter to bring a business case with a recommendation to our board,” he said in an interview.
In a sign that the development is accelerating, Slattery said he had held talks with three potential engine suppliers – Rolls-Royce, General Electric and Pratt & Whitney Canada, part of the engine unit of United Technologies.
“We are fully engaged with engine manufacturers now and meeting here at the air show…We are excited by where we are.”
Until now, planemakers have found it difficult to justify the estimated $2-4 billion investment needed to develop a new turboprop, despite its efficiency on relatively short flights.
The market has been stagnant at about 120 deliveries a year and demand for the planes is dependent on volatile oil prices, with turboprops displacing small jets when prices are high.
The thrumming noise of the propellor-driven turboprop also puts some passengers off, travel experts say, even though many in the industry say that reputation is already out of date.
Slattery said quiet new engine technology and advances in passenger comfort would stimulate demand.
“We believe the market opportunity going forward is significantly different to what past decades have shown.”
COMPETITION BOOST
China has already entered the fray with its planned MA700.
At ATR’s bright-red stand inside Singapore’s exhibition hall, Chief Executive Stefano Bortoli shrugged off the threat of a comeback by Embraer which already makes smaller turboprops.
“I think once Embraer will let us know their decision you will have our comments. At this point in time it is simply commenting on opinions. Not that we will stand still,” he said.
The fundamental shape of the two-aircraft ATR family seating 40-78 people has not changed in about 30 years, but the aircraft was modernised with the -600 variant around a decade ago.
ATR recently launched a freighter and a version designed for use on short runways, which has opened opportunities in markets such as Japan and Papua New Guinea, where PNG Air emerged as a launch customer this week.
“The approach we’ve taken…is let’s consolidate the platform that we have…and when the right time comes and there are solid options available, let’s go for that,” Bortoli said.
ATR shareholders have clashed in the past about whether to launch a bigger new 90-seater, with Toulouse-based Airbus blocking the investment. But industry analysts say ATR would have to consider responding to a new plane from Embraer.
The prospect of greater competition in turboprop adds zest to efforts by Embraer to complete a tie up with Boeing, which has agreed to acquire control of its commercial division.
The European Commission has extended its scrutiny of the $4 billion deal, fearing that it would narrow options for airlines.
Slattery reiterated Embraer would only have the appetite to invest in a new turboprop in the context of the Boeing venture.
He declined to elaborate but industry experts say it is a signal to Europe that the Boeing deal would improve choice for airlines by prompting ATR to come up with its own new product.
One European source said it remained doubtful whether Boeing would support a new turboprop once it gained control of Embraer, but analysts note the U.S. planemaker has not yet ruled it out.
(Reporting by Tim Hepher, Jamie Freed; editing by David Evans)
FILE PHOTO: Groundcrew prepare a Liat airlines ATR 42 plane on the tarmac at Barbados’ Grantley Adams International Airport
FILE PHOTO: A sign welcomes visitors to the General Motors Lordstown Complex assembly plant in Warren, Ohio
WASHINGTON (Reuters) – Electric pickup truck start-up Lordstown Motors is pursuing a $200 million loan from a U.S. Energy Department program to retool a former General Motors <GM> factory in northeast Ohio, Chief Executive Steve Burns told Reuters.
Burns met with Energy Secretary Dan Brouillette on Monday for about an hour and the company was holding additional talks with officials on Tuesday from the Energy Department’s Loan Program Office.
“We think we are worthy of government help. We don’t want a handout – we want a loan,” Burns told Reuters in an interview. “It’s just going to be more jobs faster if we get it. We are viable without it.”
Burns disclosed the company plans to unveil a drivable version of its electric truck at the Detroit auto show in June. It hopes to begin production by year-end.
The Energy Department declined comment.
Burns said the company hopes to receive funding from the Energy Department’s Advanced Technology Vehicles Manufacturing program that in 2009 awarded loans to Ford Motor Co <F>, Tesla Inc <TSLA> and Nissan Motor Co <NSANY> to retool factories, but has not issued loans since 2011. Nissan and Tesla previously repaid their loans.
The fate of the sprawling plant became a political lightning rod after GM announced its planned closure in November 2018, drawing condemnation from U.S. President Donald Trump and many U.S. lawmakers.
A bipartisan group of Ohio lawmakers wrote Brouillette last week offering “strong support” for the loan, saying northeast Ohio was dealt a “severe blow” by the plant closing.
Lordstown Motors Corp, which is 10% owned by Workhorse Group Inc <WKHS>, bought the plant and equipment for $20 million as part of its ambitious plan to begin building electric pickup trucks by the end of 2020.
“It’s cool to bring something back to life,” Burns said.
The company is working to raise additional funding and is in advanced talks with a large strategic investor, Burns said.
GM last year agreed to loan Lordstown Motors $40 million to acquire and retool the plant. Burns hopes to repay GM’s loan “in a few weeks.”
Burns plans to start crash-testing vehicles in July, hiring about 400 hourly workers in September and to begin production in November or December.
Electric vehicle startup Rivian, backed by Amazon.com Inc <AMZN> and Ford, plans to build an electric pickup truck and companion starting in late 2020. GM plans to build its first electric pickup truck starting in late 2021. Tesla plans to start building its electric Cybertruck in late 2021.
(Reporting by David Shepardson; Editing by Nick Zieminski)
165-room Hyatt House San Jose Airport officially opens in heart of Silicon Valley
Hyatt Hotels Corporation (NYSE: H) today celebrates a significant brand milestone with the opening of the 100th Hyatt House hotel: Hyatt House San Jose Airport. The newly built airport hotel provides guests the service and convenience of hotel living with the casual comforts of home. The hotel is jointly owned by Liberty Group and Hyatt Hotels.
Conveniently located adjacent to the Norman Y. Mineta San Jose International Airport (SJC), Hyatt House San Jose Airport is accessible from all major freeways in Silicon Valley including 880, 101, and 87, and is less than 35 miles from San Francisco International Airport (SFO). Downtown San Jose is just five miles from the hotel, where guests can enjoy a number of attractions, including California’s Great America amusement park, Levi’s Stadium, San Jose McEnery Convention Center, Avaya Stadium, and SAP Center at San Jose.
“We are thrilled to be the Hyatt House brand’s one hundredth hotel and to bring a new and dynamic guest experience to the San Jose marketplace for both business and personal occasion travelers,” said General Manager John McEntee. “With more than 15 million passengers traveling through SJC in 2019, we’re confident Hyatt House San Jose Airport will provide guests with a comfortable stay experience before embarking on the next leg of their journey.”
Hyatt House San Jose Airport offers:
165 stylish guestrooms, including 113 apartment-style Kitchen Suites with fully equipped kitchens, comfy living rooms, spacious bedrooms and stylish bathrooms
Free Wi-Fi throughout hotel and guestrooms
The Commons, a comfy lobby lounge with an open and welcoming space for guests to relax, work or socialize, and the Outdoor Commons, which includes a fire pit and BBQ grill, the perfect place to sip cocktails and enjoy savory bites
Complimentary Morning Spread, a full hot breakfast buffet served daily for guests, featuring a made-to-order Omelet Bar and assorted breakfast breads and bowls bar with steel-cut oatmeal, fresh fruit and more, along with vegetarian and gluten free options
H Bar, which features the Sip + Snack menu, serving freshly prepared items including soups and sandwiches, plus craft cocktails and premium beers and wines, offered seven days a week
24-hour grab-and-go H Market to meet the everyday needs of guests, from snacks and sundries to freshly prepared salads and sandwiches
24-hour Workout Room to keep fitness routines going
Gathering Rooms with more than 1,800 square feet of flexible meeting or event spaces, a thoughtful food and beverage menu, audiovisual equipment and a House Host to make sure gatherings are a real crowd pleaser
Borrows Menu with often-forgotten items from phone charges to razors and extended stay extras like blenders and laundry baskets
A Very Important Resident (VIR) program, which includes a complimentary welcome amenity, H Bar dining credit, laundry credit, and other personalized perks, for guests staying 21 or more consecutive nights
Additional conveniences, including 24-hour Guest Laundry
A pet-friendly policy that welcomes most dogs or cats (fees apply)
Free hotel shuttle for guests to/from SJC and companies within a three-mile radius
“The opening of this hotel comes at a time of strong momentum for the brand, with Hyatt House hotels under development around the world, including new markets for the brand, such as Canada and Kenya,” said Paul Daly, senior vice president of operations, Americas, Hyatt Place and Hyatt House. “We continue to build and cultivate strong relationships with guests, colleagues, owners, operators, and developers around the world. With their support, the Hyatt House brand is on a terrific trajectory.”
Hyatt House San Jose Airport Leadership
Hyatt House San Jose Airport is under the leadership of General Manager John McEntee and Director of Sales Joanne Bianchi. In his role, McEntee is directly responsible for managing the day-to-day operations of the hotel, including overseeing the hotel’s 45 associates and ensuring guests encounter the neighborly service for which the Hyatt House brand is known. McEntee joined by Bianchi, Director of Sales, who is responsible for providing sales, service and support to travelers and meeting planners frequenting the San Jose area.
BEIJING/PARIS (Reuters) – Development of China’s C919 single-aisle plane, already at least five years behind schedule, is going slower than expected, a dozen people familiar with the programme told Reuters, as the state-owned Commercial Aircraft Corporation (COMAC) struggles with a range of technical issues that have severely restricted test flights.
Delays are common in complex aerospace programmes, but the especially slow progress is a potential embarrassment for China, which has invested heavily in its first serious attempt to break the hold of Boeing and Airbus on the global jet market.
The most recent problem came down to a mathematical error, according to four people with knowledge of the matter.
COMAC engineers miscalculated the forces that would be placed on the plane’s twin engines in flight – known in the industry as loads – and sent inaccurate data to the engine manufacturer, CFM International, four people familiar with the matter told Reuters. As a result, the engine and its housing may both have to be reinforced, the people said, most likely at COMAC’s expense – though another source denied any modification.That and other technical and structural glitches meant that by early December, after more than two and a half years of flight testing, COMAC had completed less than a fifth of the 4,200 hours in the air that it needs for final approval by the Civil Aviation Administration of China (CAAC), two people close to the project told Reuters.
Genesee & Wyoming Inc. (G&W) today announced the completion of its previously announced sale to affiliates of Brookfield Infrastructure and GIC.
Under the terms of the sale, each issued and outstanding share of G&W common stock converted into the right to receive $112 in cash. As a result of the completion of the sale, G&W’s common stock ceased trading on the NYSE prior to market open today and will no longer be listed for trading on the NYSE.
“This transaction is an excellent outcome for all G&W stakeholders,” said Jack Hellmann, Chief Executive Officer of G&W. “For our customers, employees, and Class I partners, the long-term investment horizon of Brookfield and GIC is perfectly aligned with the long lives of G&W railroad assets. We look forward to building on G&W’s track record of safety, service excellence and commercial growth as we become an important component of a portfolio of global infrastructure assets.”
About Genesee & Wyoming
G&W owns or leases 119 freight railroads organized in locally managed operating regions with 8,000 employees serving 3,000 customers.
G&W’s six North American regions serve 42 U.S. states and four Canadian provinces and include 113 short line and regional freight railroads with more than 13,000 track-miles.
G&W’s Australia Region serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
G&W’s UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.
G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair. For more information, please visit www.gwrr.com.
About Brookfield Infrastructure
Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and data infrastructure sectors across North and South America, Asia Pacific and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Brookfield Infrastructure Partners is listed on the New York and Toronto stock exchanges. Further information is available at www.brookfieldinfrastructure.com.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with over $500 billion of assets under management. For more information, go to www.brookfield.com.
About GIC
GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves. As a disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. In infrastructure, GIC’s primary strategy is to invest directly in operating assets with a high degree of cash flow visibility and which provide a hedge against inflation. GIC has investments in over 40 countries. Headquartered in Singapore, GIC employs over 1,500 people across 10 offices in key financial cities worldwide. For more information on GIC, please visit www.gic.com.sg.
