Tag: rescue (Page 3 of 6)

Cathay Pacific Posts Record $1.27 Billion First Half Loss

August 12, 2020 / WIL BALDWIN

Cathay Pacific aircraft are seen parked on the tarmac at the airport, following the outbreak of the new coronavirus, in Hong Kong

SYDNEY (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd reported a record HK$9.87 billion ($1.27 billion) first-half loss and said it did not expect a meaningful recovery in passenger demand for some time due to the coronavirus pandemic.

The figure was in line with the HK$9.9 billion forecast it had flagged last month and included HK$2.47 billion of impairment charges.

Revenue plunged 48.3% to HK$27.7 billion in the six months ended June 30 as it slashed passenger flying to a barebones schedule due to lower demand and border restrictions, though it added more cargo-only flights as freight yields rose 44.1%.

The airline, which received a $5 billion rescue package led by the Hong Kong government, has so far refrained from large-scale job cuts but has warned it is reviewing all aspects of its business model with an update expected by the fourth quarter.

“Inevitably this will involve rationalisation of future planned capacity compared to pre-crisis plans, taking into account the market outlook and cost structure at that time,” Chairman Patrick Healy said in a statement on Wednesday.

It has rearranged its aircraft order book with Airbus SE to delay deliveries, is in advanced talks with Boeing Co to do the same and has begun sending one-third of its fleet outside Hong Kong for storage in less humid conditions.

The airline said last month that it had reduced its monthly cash burn to about HK$1.5 billion from between HK$2.5 billion and HK$3 billion while maintaining a minimal flying schedule.

Cathay is expected to report a full-year loss of around HK$13.6 billion, according to the average of 13 analysts polled by Refinitiv before it released its half-year results.

The airline’s shares had surged 9.3% on Wednesday ahead of the earnings announcement, which was made while trading was suspended for the market’s lunch break.

“It is laggard buying on some traditional economy stocks,” Steven Leung, a sales director at UOB Kay Hian, said of the rise.

($1 = 7.7506 Hong Kong dollars)

(Reporting by Jamie Freed; additional reporting by Donny Kwok in Hong Kong; Editing by Himani Sarkar)

Freighters To The Rescue: Korean Air Posts Q2 Profit

August 8, 2020 / WIL BALDWIN

Korean Air leveraged its cargo operation to turn a profit in the second quarter when nearly every other passenger airline has reported enormous losses after COVID-19 travel restrictions brought most flight operations to a standstill.

The South Korean carrier has one advantage that many pure passenger airlines lack – freighters. The company said it increased the operation rate of its freighter fleet and maximized cargo supply on passenger airplanes to generate an operating profit of $123.7 million and net income of $135.3 million.

Korean Air lost the ability to sell cargo space in the lower deck of passenger airplanes when travel demand sagged and it suspended most flights, resulting in a 92% drop in passenger revenue. The airline said it replaced that capacity by increasing the operation rate of freighters by 22% year-over-year through strict maintenance checks and oversight – increasing its total capacity by 1.9%.

The freighter fleet consists of 23 Boeing 747-8 and 747-400 aircraft, according to the airline’s website. It ranked as the sixth-largest cargo airline in the world in 2018, according to the International Air Transport Association.

Click the link below for the full story!

https://finance.yahoo.com/news/freighters-rescue-korean-air-posts-195548132.html

Swiss Army Chooses Lockheed Martin’s Indago 3 UAS For Tactical Reconnaissance And Surveillance

August 4, 2020 / WIL BALDWIN

Armasuisse contracted Lockheed Martin (LMT) for a fleet of Indago 3 small unmanned aircraft systems (UAS), with options for spares, training and tech support and additional systems for the Swiss Army.

Indago provides aerial reconnaissance in environments unreachable by normal fixed-wing, unmanned aircraft systems.

The first phase comprises manufacturing development to optimize the Indago 3’s configuration to meet Swiss Army requirements. These include:

Integration of a transponder for sense and avoid;
Installation of the Silvus Technologies’ radio; and
Implementation of Lockheed Martin CDL Systems’ VCSi Touch SUAS Ground Control System software that includes access to Swiss maps, including digital terrain elevation data (DTED), and Geofencing.

The first set of optimized systems will be delivered later this year with the remaining systems to be delivered several months following the first delivery. These Indago 3s will support tactical level reconnaissance and surveillance to support information collection, search and rescue, disaster relief and battle damage assessment.

“Indago 3 is uniquely qualified to support the Swiss Army’s mission needs,” said Steve Fortson, UAS Portfolio manager at Lockheed Martin. “Indagos operate very quietly from relatively low altitude and provide high fidelity sensor imagery. They are simple to use and require minimal training so soldiers can quickly execute their mission. The Silvus Technologies radios also deliver best-in-class performance and efficiency in a miniature package. They’re ideal for use in portable and embedded applications where size, weight, power and cost are key.”

Depending on payloads and operating environment, Indago 3 has a flight time of up to 50 minutes, a range of 10 kilometers, a cruise speed of 25 knots and dash at up to 40 knots. It can also operate at temperatures as low as 30-degrees below zero and as high as 120 degrees Fahrenheit. It’s cyber-secure with high fidelity color and infrared 3-axis stabilized sensors – and at approximately 5 lbs., Indago can be easily transported by a single backpack and deployed in less than three minutes.

British Airways Plans to Sell Shares and Avoid Bailout

July 26, 2020 / WIL BALDWIN

British Airways is scrapping all its Boeing 747 jumbo jets.

It’s cutting capacity to prepare for years of weak demand for air travel.

Now Reuters sources say owner IAG has a plan to get its finances in good order too.

They say the company will probably sell shares at the end of the summer, in a bid to raise almost 2.9 billion dollars.

Though other options for raising the money are being considered.

The cash would be used to keep group airlines in business, and avoid a government bailout.

That’s in contrast with European rivals.

Air France has secured a 7 billion euro package from the French government.

Germany’s Lufthansa agreed a 9 billion euro rescue deal.

IAG has avoided any such agreement, hoping to limit state involvement in how it’s run.

It has though taken state-backed loans in the UK and Spain, where it owns Iberia.

The sources say the airline is working with banks including Goldman Sachs and Morgan Stanley on the new plan.

It’s thought an announcement could coincide with financial results due at the end of the month.

Neither the airline nor the banks would comment on the reports.

IAG shares have lost about 66% of their value this year.

On Friday (July 24) afternoon they were in the red again, down over 5%.

Click the link below to watch the video report!

https://finance.yahoo.com/video/ba-aims-sell-shares-dodge-154041288.html

EU Clears 7 Billion Euros in State Aid for Air France-KLM

May 4, 2020 / WIL BALDWIN

BRUSSELS (Reuters) – The European Union’s competition watchdog on Monday approved French state aid worth 7 billion euros ($7.66 billion) for Air France <AF.PA>, saying the support would provide cash to soften the economic shock of the coronavirus pandemic.

Airlines across Europe have sought state rescues as coronavirus lockdowns have forced them to ground their fleets for more than a month, with no end in sight.

“This 7 billion euro French guarantee and shareholder loan will provide Air France with the liquidity that it urgently needs to withstand the impact of the coronavirus outbreak,” the EU’s top competition official Margrethe Vestager said in a statement.

The European Commission noted the importance of Air France, with more than 300 planes, to the French economy and the role it has played in repatriating stranded citizens and transporting medical supplies.

The Commission said in its statement that the support will take the form of a state guarantee on loans and a subordinated shareholder loan to the company by the French state.

The French and Dutch governments each hold close to 14% of the Air France-KLM group, which was created by the 2004 merger between the two national carriers.

(Reporting by Gabriela Baczynska and Robin Emmott, editing by Ed Osmond and Barbara Lewis)

FILE PHOTO: Air France airplanes on the tarmac at Paris Charles de Gaulle airport in Roissy-en-France

Norwegian Air Shareholders Vote in Favor of Rescue Plan

May 4, 2020 / WIL BALDWIN

OSLO (Reuters) – Norwegian Air <NAS.OL> shareholders backed its financial survival plan on Monday, with more than 95% of votes cast supporting the conversion of nearly $1 billion of debt into equity and raising more cash from its owners.

Approval of the scheme is a vital part of the struggling airline’s plan to tap government credit guarantees as it seeks to overcome the coronavirus crisis, which has compounded its already deep financial problems.

Airlines around the world have been hit hard by the impact on travel of the pandemic, with many forced to turn to governments for state aid to avoid bankruptcy.

The airline, which at the end of last year had amassed debts of around $8 billion, said ahead of the meeting that it had won “strong support” from aircraft lessors for its plan.

With 95% of its fleet grounded due to the coronavirus pandemic, Norwegian Air has said it could run out of cash by mid-May unless shareholders supported the plan.

On Sunday it said bondholders had signed up to the plan, which was narrowly rejected in a vote on Thursday.

Norwegian Air said lessors are now willing to convert at least $730 million of debt into equity, up from $550 million earlier, and talks are ongoing for possible further conversion.

“With the significant contributions from lessors and bondholders, the company expects to convert more than 10 billion crowns ($958 million) in debt to equity,” it said.

Based on the results from the shareholders’ meeting, the company will now proceed with the conversion of bonds and lease debt to shares, as well as the public offering of up to 400 million ($38.4 million) from the sale of new stock, it said.

The debt conversion and share sale will allow Norwegian Air to tap government guarantees of up to 2.7 billion crowns, which hinge on a reduction in leverage, on top of 300 million crowns it has already received.

The plan will hand majority ownership to the airline’s creditors and could leave current shareholders with just 5.2%.

The loan could keep Norwegian Air going until the end of 2020, although further cash may be needed as it eyes a gradual ramp-up next year and normalisation in 2022, albeit with a reduced fleet.

Norwegian Air is only paying invoices vital to maintaining minimum operations, such as salaries for staff still employed and critical IT infrastructure. It has put payments for ground handling, debt and leases on hold.

The Oslo Bourse said it had halted trade in Norwegian Air’s shares until the outcome of the vote is presented.

(Reporting by Terje Solsvik; Editing by Christian Schmollinger, Jason Neely and Alexander Smith)

FILE PHOTO: A Norwegian Air plane is refuelled at Oslo Gardermoen airport

Norwegian Air Could Run Out of Cash Unless Debt Plan Approved

April 27, 2020 / WIL BALDWIN

OSLO (Reuters) – Norwegian Air <NAS.OL> could run out of cash by mid-May unless its proposed financial rescue plan is approved by creditors and shareholders, the budget carrier warned on Monday.

If approved by bondholders, leasing companies and shareholders, the plan may help Norwegian survive the coronavirus outbreak, which has grounded 95% of its fleet, leaving just 7 aircraft in operation.

But the planned debt-to-equity swap will hand majority ownership of 53.1% to the company’s lessors, while bondholders would own 41.7%, leaving current shareholders with just 5.2%, it said.

The move would allow Norwegian to tap government guarantees of 2.7 billion crowns ($255 million), which are dependent on the company reducing its ratio of debt to equity, and which would come on top of 300 million crowns it has already received.

It is “critical to get access to the state aid package by mid-May before the company runs out of cash,” Norwegian said in a presentation to investors.

Rapid growth has made Norwegian Europe’s third-largest low-cost airline and the biggest foreign carrier serving New York and other major U.S. cities, but with the expansion came debts and liabilities of close to $8 billion by the end of 2019.

Last week, the company reported that four Swedish and Danish subsidiaries had filed for bankruptcy and that it had ended staffing contracts in Europe and the United States, putting some 4,700 jobs at risk.

Norwegian’s shares opened 8% lower on Monday and are down 86% year-to-date.

The company aims to gradually emerge from the COVID-19 crisis with both a short-haul and long-haul network in place, and is targeting a return to normal operations in 2022, it said.

The plan requires backing from bondholders in each of four separate votes planned for April 30, from shareholders in an extraordinary general meeting scheduled for May 4, and from leasing firms.

It maintained plans to raise up to 400 million crowns in cash from owners.

(Editing by Jan Harvey)

Norwegian Air Shares Plummet 60% After Proposed Rescue Plan

April 14, 2020 / WIL BALDWIN

OSLO (Reuters) – The shares of Norwegian Air plunged by more than 60% on Tuesday as they resumed trade after the airline proposed a financial rescue package on April 8 that would significantly dilute existing equity.

If approved by creditors and shareholders, the plan would convert $4.3 billion of debt into equity, and also raise some new equity, wiping out much of the remaining value of the company’s current shares.

The budget carrier has grounded most of its fleet due to the impact of the COVID-19 outbreak on travel and on March 16 announced the temporary layoff of 7,300 staff, about 90% of its workforce.

Norwegian’s shares plunged 62.5% in early trade to an all-time low of 3.10 crowns, valuing the company at just 500 million Norwegian crowns ($48.8 million).

Norwegian was facing financial problems even before the coronavirus outbreak. Before Tuesday’s fall, its shares were down 78% this year, underperforming other major European airlines, which were down between 30% and 60%.

The airline must now convince its creditors to agree to the rescue plan before it is put to a shareholders’ vote on May 4.

The Oslo stock exchange said on Tuesday that trading in Norwegian’s shares would be subject to special observation until there was further clarification of the airline’s situation.

Special observation is used under circumstances that may make the valuation of a security particularly uncertain, according to the market operator’s guidelines.

($1 = 10.2490 Norwegian crowns)

(Reporting by Terje Solsvik, editing by Gwladys Fouche/Victoria Klesty/Susan Fenton)

Passengers board a Norwegian Air plane in Kirkenes, Norway

Boeing Receives $1.5 Billion P-8A Poseidon U.S. Navy Contract

March 31, 2020 / WIL BALDWIN

The U.S. Navy awarded Boeing [NYSE: BA] a $1.5 billion production contract for the next 18 P-8A Poseidon aircraft. The contract includes eight aircraft for the U.S. Navy, six aircraft for the Republic of Korea Navy and four aircraft for the Royal New Zealand Air Force.

The Republic of Korea Navy and Royal New Zealand Air Force acquired the aircraft through the Foreign Military Sales process and will receive the same P-8A Poseidon variant designed and produced for the U.S. Navy. The Royal New Zealand Air Force is expected to begin receiving aircraft in 2022 and the Republic of Korea Navy is expected to begin receiving aircraft in 2023.

The P-8 is a proven long-range multi-mission maritime patrol aircraft capable of broad-area, maritime and littoral operations. A military derivative of the Boeing 737 Next-Generation airplane, the P-8 combines superior performance and reliability with an advanced mission system that ensures maximum interoperability in the battle space.

The P-8 is militarized with maritime weapons, a modern open mission system architecture and commercial-like support for affordability. The aircraft is modified to include a bomb bay and pylons for weapons. It has two weapons stations on each wing and can carry 129 sonobuoys. The aircraft is also fitted with an in-flight refueling system.

With more than 254,000 flight hours to date, the P-8A Poseidon and P-8I variants patrol the globe performing anti-submarine and anti-surface warfare; intelligence, surveillance and reconnaissance; humanitarian; and search and rescue missions.

Airbus & Texas DPS Explain Large-Scale Search and Rescue Operations

February 24, 2020 / WIL BALDWIN

Article by Belén Morant, Media: Airbus Helicopters; Jonny Carroll; DTX Media

Tim Ochsner, Chief Pilot of the Texas Department of Public Safety (DPS), explains the key to the success of the SAREX (search and rescue exercise)

When it comes to offering an adequate, effective and rapid response to natural disasters there’s no room for improvisation, particularly when a number of different agencies are involved. Tim Ochsner, Chief Pilot of the Texas Department of Public Safety (DPS), explains the key to the success of the SAREX (search and rescue exercise) conducted by more than 20 different agencies since 2015, which has now established itself as the benchmark for rescue training in the US.

How did the need arise to organise rescue training on such a large scale as SAREX?

In 2011, the state of Texas had huge problems with wildfires, and the following years we had two major floods. All the agencies equipped with aerial capability for these kinds of situations were involved: the Army with their Lakotas, our local EMS agencies, the Austin Police Department with their H125 and San Antonio Police Department with an H125 as well…

We all quickly formed a team and worked together out of necessity due to the flooding. We didn’t have time to set much up – we just did it.

After those events, we thought we needed to come up with a better plan for training, establish a communication plan and standard operating procedures. We had to establish a cooperation framework that was independent to the parties we tend to work with, because at the end of the day these things can change. That’s how the SAREX exercise came about.

Click the link for the full story, more pictures, and a video! https://www.airbus.com/newsroom/stories/sarex.html

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