Tag: Reuters (Page 30 of 49)

Alaska Mid-Air Seaplane Crash Leaves 6 Dead

May 14, 2019 / WIL BALDWIN

ANCHORAGE, Alaska (Reuters) – Searchers found the bodies of the last two Alaska seaplane crash victims on Tuesday evening, after a hunt through the debris and frigid waters following a mid-air collision that left a total of six people dead and 10 injured, officials said.

“The last two people were found. They were found deceased,” said U.S. Coast Guard Chief Petty Officer Matthew Schofield.

The discovery of the bodies closes the search at the scene where the two seaplanes crashed after colliding over the inlet waters near Ketchikan, in southeastern Alaska, Schofield said.

Work at the crash site will now shift to an investigation into what led the two planes, which were ferrying Princess Cruises passengers on sightseeing expeditions, to strike each other and fall into the waters of George Inlet.

A team of 14 National Transportation Safety Board investigators has been sent to the site and divers will start working on Wednesday to pull up the wreckage of the two planes.

The two missing people, an Australian and a Canadian, were among 14 passengers from a Princess Cruises ship who boarded two seaplanes operated by separate tour companies in the town of Ketchikan on Monday, the cruise line said.

A 14-member team from the NTSB began investigating the crash on Tuesday and is unlikely to determine the cause during the week the team will be at the scene, NTSB board member Jennifer Homendy told a news conference.

Ten people survived but were injured in the collision, which took place over open water during daylight, the Coast Guard said. The dead include one of the pilots. The victims were not immediately identified.

Three of the injured were in serious condition and seven in fair condition, Dr Peter Rice, medical director of the PeaceHealth Ketchikan Medical Center, told a separate news conference.

The water temperature off Ketchikan on Tuesday was 48 Fahrenheit, according to the National Weather Service. Expected survival time in 40-50F (4-10C) is one to three hours, according to the United States Search & Rescue Task Force website.

The investigators will be collecting information from the survivors, the Federal Aviation Administration, any other witnesses who might have been in the area, flight logs, training records and other sources, including the wrecked planes, Homendy said.

“We still have to recover the planes and then we have to look at those. It takes some significant work to really understand how the two came together,” she said.

All of the planes’ passengers arrived in Ketchikan on the cruise ship Royal Princess during a seven-day trip between Vancouver, British Columbia, and Anchorage, Alaska, Princess Cruises said.

Ten passengers and a pilot were aboard one float plane, a de Havilland Otter DHC-3, operated by Taquan Air. Four passengers and a pilot were aboard the second float plane, a de Havilland DHC-2 Beaver, run by Mountain Air Service of Ketchikan.

The crash site, at Coon Cove about 300 miles (480 km) south of Juneau, Alaska’s capital, lies near a tourist lodge that runs excursions to the nearby Misty Fjords National Monument.

Ketchikan-based Taquan Air said the plane was returning from a sightseeing tour of Misty Fjords when the crash occurred.

Reporting by Yereth Rosen in Anchorage; additional reporting by Rich McKay in Atlanta and Barbara Goldberg in New York; Editing by Bill Tarrant, Cynthia Osterman and Leslie Adler

WestJet To Be Taken Private In C$3.5 Billion Cash Deal

May 13, 2019 / WIL BALDWIN

(Reuters) – Canada’s WestJet Airlines Ltd said on Monday it will be acquired by private equity firm Onex Corp in an all-cash deal for C$3.53 billion ($2.63 billion).

Including debt, the deal is valued at about C$5 billion.

As part of the deal, WestJet shareholders will receive C$31 for each share held, representing an about 67% premium to its closing price on Friday.

The investment will be led by Onex Partners, Onex’s private equity platform focused on larger investment opportunities and WestJet’s board has recommended that its shareholders vote in favor of the deal.

The private equity fund has a history of investing in aerospace, having previously held a major stake in Boeing supplier Spirit Aerosystems.

The deal is expected to close in the latter part of this year or early next year, the company said.

CIBC Capital Markets and B of A Merrill Lynch were the financial advisers to WestJet, while Barclays, Morgan Stanley and RBC Capital Markets advised Onex.

(Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur)

Virgin Atlantic In, IAG Out in Race for Thomas Cook Airlines

May 10, 2019 / WIL BALDWIN

LONDON (Reuters) – The chief executive of British Airways owner IAG ruled out bidding for Thomas Cook’s airline unit on Friday, a day after rival Virgin Atlantic was reported to be interested in part of the business.

Lufthansa and private equity fund Indigo Partners are seen among the front-runners for Thomas Cook’s airlines after the firm put it up for sale in February, to raise cash after a string of profit warnings in 2018.

IAG had previously been linked with the business, but on Friday, Chief Executive Willie Walsh said that his firm had not made a bid.

“In relation to Thomas Cook… we’re not putting in any bid,” Walsh told reporters.

He added in an analyst call later in the day that the firm was not actively pursuing M&A at the moment but was in a strong position to do so if something attractive came up.

Virgin Atlantic has put in a preliminary offer for the tour operator’s UK long-haul business, Sky News reported on Thursday. Thomas Cook and Virgin Atlantic both declined to comment on the report.

Lufthansa is a bidder for Thomas Cook’s German airline Condor with an option to acquire the remaining airlines of the British travel group, Lufthansa’s CEO said on Tuesday.

Indigo Partners is also a likely suitor for Thomas Cook’s airline business, sources said last week, adding that the deadline for initial bids was on Tuesday earlier this week.

An unexpectedly warm summer in northern Europe last year deterred holiday makers from booking lucrative last minute getaways, resulting in two major profit warnings for the world’s oldest travel company.

Worries about the firm’s ability to pay its debts pushed the yield on its euro-denominated bonds that mature in 2022 to a record high last Friday, and Thomas Cook said later in the day that it was in talks with its lenders about bolstering its finances.

Thomas Cook’s half-year earnings release for the six months to March 31 is due next Thursday.

(Reporting by Alistair Smout; Editing by Keith Weir)

Azul Says Rivals Blocked Carrier From Profitable Route

May 9, 2019 / WIL BALDWIN

SAO PAULO, May 9 (Reuters) – Brazilian airline Azul SA’s chief executive said on Thursday that its two larger competitors had barred the carrier from providing a competing air shuttle service on the highly profitable Sao Paulo to Rio de Janeiro route.

“Essentially what they did was they had a shutdown plan to keep us out,” CEO John Rodgerson told Reuters in an interview, referring to competitors Gol Linhas Aereas Inteligentes and LATAM Airlines Group.

The comments come weeks after Azul engineered a plan to break into the Sao Paulo-Rio de Janeiro route, by far the most transited in South America, but it fell apart after Gol and LATAM intervened.

The three airlines have been disputing the airport rights set to be left behind by their struggling competitor Avianca Brasil, which was scheduled to auction the routes this week as part of a bankruptcy process.

Azul, Brazil’s No. 3 airline, initially reached a deal with Avianca Brasil, but a few weeks later Gol and LATAM reached a different deal with Avianca Brasil’s key creditors, which was ultimately approved and sidelined Azul.

Both plans hinged on a successful Avianca Brasil bankruptcy auction, but the event was recently suspended indefinitely, meaning that even Gol and LATAM may not be able to get the airport rights they had agreed to buy.

“I don’t think they ever had the intention of closing on the deal,” Rodgerson said of Gol and LATAM’s agreement with Avianca Brasil.

Gol and LATAM have previously denied any anti-competitive stance.

Brazil’s antitrust regulator CADE said in April that it was concerned about a potential takeover by Brazil’s two major airlines, and that it preferred to see Azul or a new airline take over Avianca Brasil’s airport rights.

The rift also led Azul to leave Brazil’s airline industry group, known as ABEAR, late last month.

“I think the way they acted was inappropriate and not in the best interest of the industry,” Rodgerson said. “I don’t think we share the same values.”

Rodgerson gave the interview as part of Azul’s first quarter results announcement, in which higher operational costs weighed significantly, sending profits down 20% to 137.7 million reais ($35.06 million), despite significantly higher revenue compared to the same period last year.

While revenue grew 16% to 2.5 billion reais, personnel costs surged 37% amid continued expansion at the company, as well as the expiration of a payroll tax incentive.

“It’s kind of the new norm,” Rodgerson said.

Fuel costs also increased significantly, while other undisclosed costs jumped 34% to 224 million reais in the period.

Azul and its Brazilian competitors have faced higher costs in recent quarters due to the continued depreciation of the local currency, the real. While passengers buy their tickets in reais, many of the airline’s expenses, such as fuel, are denominated in the stronger U.S. dollar.

($1 = 3.9393 reais)

(Reporting by Marcelo Rochabrun; editing by Bernadette Baum and Bill Trott)

Emirates Profit Hit by High Fuel Costs, Strong Dollar

May 9, 2019 / WIL BALDWIN

DUBAI (Reuters) – Emirates will “work smart and hard” to improve its performance after the Gulf airline’s profit hit a decade low as soaring fuel costs and a strong dollar took a toll on earnings, while passenger growth stalled.

After years of growth, during which it has become one of the world’s biggest airlines as other long-established national carriers have struggled, Dubai-based, state-owned Emirates warned last week profit would be lower than previous years.

It revealed just how badly it had fared on Thursday, reporting a 69 percent fall in net profit to 871 million dirhams ($237 million) in the year to March 31.

Meanwhile, the number of passengers flying Emirates rose 0.2 percent to 58.6 million, its weakest growth rate in at least 15 years, while cargo increased 1.4 percent to 2.7 million tonnes.

Chairman Sheikh Ahmed bin Saeed al-Maktoum said in a statement that the year had been “tough”, with higher oil prices, a strong dollar and stiffer competition, adding “our performance was not as strong as we would have liked”.

While revenue at the airline rose 6 percent to 97.9 billion dirhams, its profit fell to its lowest level since 2009. And profit at Emirates Group, which includes other units, fell 43.7 percent to 2.3 billions dirhams, its lowest since 2012.

Despite the profit fall, Emirates said it will pay the Investment Corporation of Dubai a dividend of 500 million dirhams for the year.

“SMART AND HARD”

Sheikh Ahmed said it was difficult to predict the year ahead but Emirates would “work smart and hard to tackle the challenges and take advantage of the opportunities.”

Unfavorable currency moves in key markets cost Emirates $156 million, while operating costs rose 8 percent with the airline recording its biggest ever fuel bill of 30.8 billion dirhams.

Emirates filled an average of 76.8 percent of passenger seats, slightly lower than the previous year, while increasing the number of available seats by 4 percent.

Fare increases helped Emirates register a 3 percent increase in passenger margin, despite it filling fewer seats.

The number of airline employees fell by 2,074, or 3.3 percent. Overall group workforce rose 1.9 percent to 105,286.

Emirates agreed with Airbus in February to cancel dozens of A380 orders and buy smaller A350’s and A330’s as the planemaker scrapped production of the world’s largest passenger jet.

Emirates, which will take 14 more A380’s between this year and the end of 2021, is developing a new route network for a fleet that will include smaller aircraft, it said last week.

Reporting by Alexander Cornwell; Editing by Kirsten Donovan and Alexander Smith

FILE PHOTO: Emirates Airline Boeing 777-300ER planes are seen at Dubai International Airport in Dubai, United Arab Emirates February 15, 2019. REUTERS/Christopher Pike/File Photo

Brazil Airline Azul’s Profits Drop 20% on Higher Expenses

May 9, 2019 / WIL BALDWIN

SAO PAULO, May 9 (Reuters) – Higher operational costs weighed on Brazil’s No. 3 airline, Azul SA, sending profits in the first quarter down 20% to 137.7 million reais ($35.06 million), despite significantly higher revenue compared to the same period last year.

While revenue grew 16% to 2.5 billion reais, personnel costs surged 37% amid continued expansion at the company.

Fuel costs also increased significantly, while other undisclosed costs jumped 34% to 224 million reais in the period.

Earlier this year, Azul signed a tentative deal that ultimately fell through to take over a set of coveted domestic routes that were to be auctioned off by its rival Avianca Brasil, which is going through a bankruptcy protection process.

The routes were then set to go to its two larger competitors, Gol Linhas Aereas Inteligentes and LATAM Airlines Group, dealing a blow to Azul as it had hoped to break into the lucrative Sao Paulo-Rio de Janeiro route.

That route is currently dominated by Gol and LATAM and is considered to be among the most profitable in the country.

At the last minute, a judge indefinitely suspended Avianca’s auction which was due earlier this week.

($1 = 3.9273 reais) (Reporting by Marcelo Rochabrun; Editing by Bernadette Baum)

Biman Bangladesh Airplane Skids Off Runway in Yangon

May 9, 2019 / WIL BALDWIN

YANGON (Reuters) – A Biman Bangladesh Airlines plane skidded off the runway when it landed in bad weather at Yangon’s international airport on Wednesday evening, injuring at least 17 people, officials said.

The Bombardier Dash 8 aircraft was carrying 29 passengers and four crew when it bounced while landing during heavy winds in Myanmar’s commercial capital, Bangladesh’s ambassador said. The plane was severely damaged.

The 17 who sustained mostly minor injuries were admitted to a local hospital, Manjurul Karim Khan Chowdhury, told Reuters.

“The main reason, the pilot told me, was the weather – crosswinds,” he said, “When he was trying to land… suddenly the aircraft jumped, went up and went down heavily.”

A photo published by the Myanmar Times showed the plane halfway off the runway with its fuselage apparently broken.

Shakil Miraj, general manager for Biman Bangladesh, also blamed bad weather for the crash.

The airline flies between Yangon and Bangladesh’s capital Dhaka four days a week.

A spokesman for Myanmar’s Department of Civil Aviation declined to comment, saying the department had not received a report of the incident from the ground.

Reporting by Thu Thu Aung, Simon Lewis, and Poppy McPherson in Yangon and Ruma Paul in Dhaka; Editing by Frances Kerry and John Stonestreet

FAA Convenes Review Board for Boeing Software Fix

May 7, 2019 / WIL BALDWIN

WASHINGTON (Reuters) – The Federal Aviation Administration said on Tuesday it had convened a multi-agency Technical Advisory Board to review Boeing’s proposed software fix on the grounded 737 MAX.

The board consists of experts from the FAA, U.S. Air Force, NASA and Volpe National Transportation Systems Center that were not involved in any aspect of the Boeing 737 MAX certification. The board’s recommendations will “directly inform the FAA’s decision concerning the 737 MAX fleet’s safe return to service.”

The plane was grounded worldwide in mid-March after two Boeing 737 MAX crashes in October and March killed 346 people.

Boeing, which has yet to formally submit the software fix to the FAA for approval, did not immediately comment Tuesday on the new review.

Some in Congress have urged the FAA to conduct an independent review into the anti-stall system at the center of investigations into two deadly plane crashes before allowing the planes to resume flying.

The board known as TAB will assess Boeing’s proposed fix to the Maneuvering Characteristics Augmentation System (MCAS), the FAA said.

“The TAB is charged with evaluating Boeing and FAA efforts related to Boeing’s software update and its integration into the 737 MAX flight control system. The TAB will identify issues where further investigation is required prior to FAA approval of the design change,” the FAA said.

The world’s largest planemaker, facing its worst crisis in years and the worldwide grounding of its top-selling jetliner, has said its software upgrade and associated pilot training will add layers of protection to prevent erroneous data from triggering MCAS.

The system activated in the Ethiopian Airlines crash in March and also during a separate Lion Air crash in Indonesia in October.

There are a number of other reviews ongoing, including a blue-ribbon committee appointed by Transportation Secretary Elaine Chao looking at the FAA’s aircraft certification process.

Federal prosecutors, the Transportation Department’s inspector general and lawmakers are investigating the FAA’s certification of the 737 MAX 8 aircraft.

A separate joint review by 10 governmental air regulators started last week and is expected to last about 90 days, but the FAA has said that a decision on ungrounding the plane is not contingent on that review being completed.

(Reporting by David Shepardson; Editing by Nick Zieminski)

No Survivors Found in Mexico Crash of Jet Carrying 13 People

May 7, 2019 / WIL BALDWIN

MEXICO CITY (Reuters) – All 13 people aboard were killed when a private jet crashed between the U.S. city of Las Vegas and Monterrey in northern Mexico, authorities said on Monday.

The wreckage of the plane was found via aerial surveillance in a remote mountainous zone in the northern municipality of Ocampo, the government of Coahuila state said in a statement.

A photograph published on local television network Milenio showed what it said were the burnt remnants of the plane, broken into pieces, spread over charred earth.

The Coahuila government said the flight plan listed 13 people on board. It said no survivors were found.

Mexican media reported that the passengers had been to a boxing match between Mexican boxer Saul “Canelo” Alvarez and U.S. fighter Daniel Jacobs in Las Vegas on Saturday.

The nationalities of the victims were not immediately clear. The surnames of the three crew and 10 passengers published by the Coahuila government were all Hispanic.

The victims were aged between 57 and 19, according to a version of the passenger list published in Mexican media.

Newspaper Diario de Yucatan said on its website that among the victims were 55-year-old businessman Luis Octavio Reyes Dominguez, his wife, and their three children.

In a statement, Canada’s Bombardier Inc identified the jet as a Challenger 601 and said the plane had gone missing about 150 nautical miles from the northern Mexican city of Monclova.

Expressing its condolences to the victims, the company said it had been in touch with Canada’s transportation safety board and would work with the investigating authorities.

Mexican broadcaster Televisa reported the twin-engine jet lost contact on Sunday with air traffic controllers sometime after 5:20 p.m. local time (2220 GMT) as the pilot descended to avoid a storm.

Francisco Martinez, an emergency services official in Coahuila, told Milenio recent adverse weather conditions would form part of the investigation into the crash. However, he stopped short of saying weather had caused it.

(Reporting by Daina Beth Solomon, Noe Torres, Ana Isabel Martinez, David Alire Garcia and Allison Lampert; Editing by David Gregorio and Tom Brown)

Air Canada Reports Surprise Profit Despite MAX Grounding

May 6, 2019 / WIL BALDWIN

May 6 (Reuters) – Air Canada on Monday reported a surprise quarterly profit that sent shares up 4 percent in morning trading, helped by flying more passengers and its purchase of a loyalty program, despite rising costs from the global grounding of Boeing’s 737 MAX jets.

Canada’s largest carrier said it sees strong booking trends ahead of the busy summer season, and expects second quarter results in line with forecasts made before the March global suspension of the Boeing MAX in March following two fatal crashes involving the model.

Air Canada stock was up 4 percent, even as Canada’s main stock index fell at the open on Monday, after U.S. President Donald Trump threatened to raise tariffs on China, triggering a global rout in risky assets.

Air Canada Chief Executive Calin Rovinescu said the carrier, which operates 24 MAX jets, would return the planes to service based on its own safety assessment, in addition to regulators giving it the green light.

During the first three months of the year, Air Canada and other North American carriers that fly the MAX scrambled to replace flights following harsh weather and the plane’s grounding, while facing pressure from rising fuel costs.

“First quarter is always the most demanding for Canadian airlines,” Rovinescu said. “This year was an exception and it was made more so with the unexpected grounding of the 737 MAX.”

Air Canada canceled 1,600 mainline flights during the first three months of the year, a 40 percent increase compared to the first quarter of 2018, Rovinescu told analysts.

The company was able to protect most of its flights from the date of the grounding through April 30 by entering into new leases, among other strategies, he said.

For the first quarter, the company reported a 9.4 percent rise in total operating revenue to C$4.45 billion ($3.30 billion), beating analysts’ estimate of C$4.39 billion.

In January, Air Canada closed a deal to acquire the Aeroplan loyalty program.

Aeroplan revenue and strong demand drove a nearly 5 percent increase in passenger yield, the company said, even as cost per available seat mile (CASM) — a measure of how much an airline spends to fly a passenger — climbed 3.8 percent.

Air Canada said traffic rose 4.2 percent while passenger revenue per available seat mile, a key revenue measure for airlines, increased 4.5 percent in the first quarter.

The Montreal-based company reported an adjusted net income of C$17 million, or 6 Canadian cents per share, in the first quarter ended March 31, compared to a loss of C$26 million, or 10 Canadian cents per share, a year earlier.

Analysts’ on average had expected a loss of 18 Canadian cents, according to IBES data from Refinitiv. ($1 = 1.3467 Canadian dollars)

(Reporting by Allison Lampert and Shanti S Nair ; Editing by Sriraj Kalluvila and Bill Trott)

“SMART AND HARD”

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