Tag: Reuters (Page 3 of 49)

US & China to Allow 4 Weekly Flights Each for Airlines

June 15, 2020 / WIL BALDWIN

Delta to fly next week

FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham

(Reuters) – The United States and China will each allow four weekly flights between the two countries, the U.S. Transportation Department said on Monday, easing a standoff on travel restrictions in the midst of the novel coronavirus pandemic.

The U.S. government still hopes China will agree to restore full U.S. flight rights under their bilateral aviation agreement, the Transportation Department said Monday in its revised order on China flights.

“As the Chinese government allows more flights by U.S. carriers, we will reciprocate,” it said.

The United States had threatened to bar Chinese passenger flights on June 16 due to Beijing’s curbs on U.S. airlines amid simmering tensions between the world’s two largest economies, and has raised concerns about the number of charter flights Chinese carriers want to fly.

Among U.S. airlines, Delta Air Lines and United Airlines had each sought to restart daily passenger flights to China in June but changed their plans in the absence of government approval.

Following China’s agreement to allow four U.S. flights total, Delta said it would operate two flights to Shanghai from Seattle next week and once weekly flights from Seattle and Detroit beginning in July, all via Seoul.

United said it was aiming to re-launch service to China in the weeks ahead.

Chinese authorities have already agreed to some changes on requirements for U.S. carriers, including allowing temperature checks to be done before flights take off for China, rather than mid-flight as previously discussed, a person briefed on the matter said.

(Reporting by David Shepardson and Tracy Rucinski; Editing by Grant McCool and Stephen Coates)

New Zealand to Buy Five New Super Hercules Aircraft

June 5, 2020 / WIL BALDWIN

WELLINGTON, June 5 (Reuters) – New Zealand said on Friday that it will purchase five C-130J-30 Super Hercules transport aircraft from Lockheed Martin to replace its existing fleet.

“Along with the new fleet, the $1.521 billion project will deliver a full mission flight simulator and other supporting infrastructure,” Defence Minister Ron Mark said in a statement.

The first of the new Hercules will be delivered in 2024, with the full fleet operating from 2025, he said.

New Zealand will also start work in 2021 on upgrading its air mobility capability, when options will be considered for replacing the two Boeing 757 aircraft operated by the Royal New Zealand Air Force.

(Reporting by Praveen Menon Editing by Shri Navaratnam)

U.S. to Revise Chinese Passenger Airline Ban After Beijing Move

June 4, 2020 / WIL BALDWIN

A China Eastern Airlines aircraft is seen at Hongqiao International Airport in Shanghai

WASHINGTON (Reuters) – The U.S. Transportation Department plans to issue a revised order in the coming days that is likely to allow some Chinese passenger airline flights to continue, government and airline officials said.

On Thursday, China said it would ease coronavirus restrictions to allow in more foreign carriers, shortly after Washington said it planned to bar Chinese passenger airlines from flying to the United States by June 16 due to Beijing’s curbs on U.S. carriers.

The change should allow U.S. carriers to resume once-a-week flights into a city of their choice starting on June 8, but that would be still significantly fewer than what the U.S. government says its aviation agreement with China allows.

The Transportation Department did not immediately comment.

The department said on Wednesday Chinese carriers could operate “the same number of scheduled passenger flights as the Chinese government allows ours.” It added the order was to “restore a competitive balance and fair and equal opportunity among U.S. and Chinese air carriers.”

The U.S. order would halt the four weekly U.S. roundtrip flights by Air China <0753.HK>, China Eastern Airlines Corp, China Southern Airlines Co <1055.HK> and Xiamen Airlines Co.

U.S. and airline officials have privately raised concerns about the revised Chinese rules and it is unclear if carriers would agree to fly just once a week to China when they have sought approval for two or three daily flights.

Delta Air Lines <DAL.N> and United Airlines <UAL> asked to resume flights to China this month. Both said they were reviewing the order from the Civil Aviation Administration of China.

American Airlines <AAL> is sticking with its previous plan to resume service to China at the end of October, spokesman Ross Feinstein said.

The CAAC said all airlines can increase the number of international flights involving China to two per week if none of their passengers test positive for COVID-19, the disease caused by the novel coronavirus, for three consecutive weeks.

If five or more passengers on one flight test positive upon arrival, the CAAC will bar the airline for a week. Airlines would be suspended for four weeks if 10 passengers or more test positive.

(Reporting by David Shepardson in Washington; additional reporting by Tracy Rucinski in Chicago; Editing by Chris Reese, Richard Chang and Bernadette Baum)

Safran Shares Lifted by Boeing 737 MAX Restart Plan

May 28, 2020 / WIL BALDWIN

Outbreak of the coronavirus disease (COVID-19) in Renton, Washington

PARIS (Reuters) – Safran <SAF.PA> shares rose on Thursday after Boeing <BA.N> said it would restart production of its 737 MAX jet and announced further cost-cutting measures.

Shares in the French aerospace firm, which co-produces the 737 MAX’s engines with General Electric <GE.N>, were up 2.2%, while Airbus <AIR.PA> shares were 0.7% higher.

Boeing said on Wednesday it was eliminating more than 12,000 U.S. jobs, including 6,770 involuntary layoffs, as the largest American planemaker restructures in the face of the coronavirus pandemic. The move nevertheless lifted Boeing’s shares.

The U.S. rival to Airbus said it had restarted 737 MAX production at a “low rate” at its Renton, Washington factory. Reuters reported in April that regulatory approval for the MAX was not expected until at least August.

(Reporting by Sudip Kar-Gupta; Editing by David Goodman and Alexander Smith)

The Safran company logo is pictured at the company’s logistic area in Colomiers near Toulouse

Tesla Cuts Prices up to 6% in North America to Boost Demand

May 27, 2020 / WIL BALDWIN

A Tesla logo on a Model S is photographed inside of a Tesla dealership in New York

Tesla Inc <TSLA> has cut prices of its electric vehicles by as much as 6% in North America following a decline in auto demand in the region during weeks of lockdown that have now started to ease.

Tesla also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X sport utility vehicles (SUV’s).

Auto retail sales in the United States likely halved in April from a year earlier, showed data from J.D. Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.

Automakers including General Motors Co <GM>, Ford Motor Co <F> and Fiat Chrysler Automobiles NV <FCAU>, are offering 0% financing rates and deferred payment options for new purchases.

Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.

Tesla was briefly forced to stop work at its Fremont, California, factory due to stay-at-home orders. It resumed production after resolving a dispute over safety measures with local authorities.

On Wednesday, Tesla website’s showed the starting price for its Model S sedan is now $74,990, down from $79,990.

Its Model X SUVs are now priced at $79,990, from $84,990, and the lowest-priced Model 3 sedan is $2,000 cheaper at $37,990.

Tesla said it will also cut prices in China – as per usual after price adjustments in the United States – by around 4% for the Model X and Model S.

Tesla China, which is delivering Model 3 sedans from its Shanghai factory, in a Weibo post said it has also cut prices for the Model S and Model X cars it imports, but will keep prices of locally made Model 3 cars unchanged.

(Reporting by Yilei Sun and Brenda Goh; Editing by Tom Hogue and Christopher Cushing)

Emirates Plans to Cut About 30,000 Jobs Amid Virus Outbreak

May 18, 2020 / WIL BALDWIN

(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

Korean Air to Issue $817 Million in New Shares as Virus Strains Industry

May 14, 2020 / WIL BALDWIN

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

Azul Airlines to Delay 59 Embraer Airplanes Until After 2024

May 14, 2020 / WIL BALDWIN

SAO PAULO, May 14 (Reuters) – Brazilian airline Azul SA said on Wednesday it had agreed with planemaker Embraer SA to delay the delivery of 59 E2 jets, with a list price of 24.5 billion reais ($4.16 billion), to 2024 or later.

The planes had been initially set for delivery from 2020 to 2023, according to an Azul securities filing.

Azul said the agreement was a step to shore up its business amid the COVID-19 pandemic, which also led it to reduce its April capacity by 90% in comparison to the same month in 2019.

($1 = 5.8852 reais)

(Reporting by Alberto Alergiri; Editing by Sandra Maler)

Avianca Files for Bankruptcy Protection

May 11, 2020 / WIL BALDWIN

(Reuters) – Avianca Holdings, Latin America’s second-largest airline, filed for bankruptcy on Sunday, after failing to meet a bond payment deadline, while its pleas for coronavirus aid from Colombia’s government have so far been unsuccessful.

If it fails to come out of bankruptcy, Bogota-based Avianca would be one of the first major carriers worldwide to go under as a result of the pandemic, which has crippled world travel.

Avianca has not flown a regularly scheduled passenger flight since late March and most of its 20,000 employees have gone without pay through the crisis.

“Avianca is facing the most challenging crisis in our 100-year history,” Avianca Chief Executive Anko van der Werff said in a news release.

While Avianca was already weak before the coronavirus outbreak, its bankruptcy filing highlights the challenges for airlines that cannot count on state rescues or on such rescues coming fast enough. Avianca is still hoping for a government bailout.

“This isn’t a surprise at all,” said Juan David Ballen, chief economist at Casa de Bolsa brokerage in Bogota. “The company was heavily indebted despite the fact it tried to restructure its debt last year.”

Avianca, the second-oldest continually operating airline in the world after KLM, had $7.3 billion in debts in 2019. The airline filed for Chapter 11 bankruptcy in New York and said it would continue operations while it restructured its debts.

The Colombian Association of Civil Aviators (ACDAC), a union representing many Avianca employees, said it supported the move.

Avianca already went through bankruptcy in the early 2000s, from which it was rescued by a Bolivian-born oil businessman, German Efromovich.

Efromovich grew Avianca aggressively but also saddled the carrier with significant debt until he was ousted from the airline last year in a boardroom coup led by United Airlines Holdings Inc. He still owns a majority stake in the carrier.

United stands to lose up to $700 million in loans related to Avianca.

Efromovich told Reuters on Sunday that he disagreed with the decision to file for bankruptcy and that he was not involved in making it.

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https://finance.yahoo.com/news/colombias-avianca-airline-files-bankruptcy-174035790.html

The logo of Avianca Airlines is pictured at a counter following the cancellation of an Avianca flight to San Salvador due to coronavirus fears in Mexico City

Qantas Pauses Airplane Deliveries from Airbus and Boeing

May 10, 2020 / WIL BALDWIN

Qantas planes are seen at Kingsford Smith International Airport in Sydney, Australia

SYDNEY (Reuters) – Qantas Airways Ltd <QAN.AX> said on Monday it had advised Airbus SE <AIR.PA> and Boeing Co <BA.N> that it did not expect to take delivery of any new planes in the near term as it grapples with a plunge in demand due to the coronavirus pandemic.

The airline had expected to add three Boeing 787-9 jets to its fleet by the end of 2020 and to start taking delivery in August of the first of 18 Airbus A321neos due by 2022.

There is no longer a specific timeline for them to arrive because the market is too uncertain, a Qantas spokesman said, confirming a report on travel website Executive Traveller.

Many carriers around the world have grounded the bulk of their fleets and halted aircraft deliveries in response to the pandemic, leading Airbus and Boeing to cut production rates.

Qantas last week said it had shelved plans to order this year up to 12 A350s capable of the world’s longest commercial flights from Sydney to London. It said it was reviewing its fleet with the expectation that most international travel could take years to rebound.

More than 25,000 of the airline’s staff have been stood down until at least the end of June as the carrier is flying only 5% of its pre-crisis domestic passenger network and 1% of its pre-crisis international network.

An Airbus spokesman said his company did not comment on delivery schedules for airlines. Boeing did not respond immediately to a request for comment.

(Reporting by Jamie Freed; Editing by Himani Sarkar)

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