Airbus logo at the entrance of the Airbus facility in Bouguenais
PARIS (Reuters) – Airbus <AIR.PA> deliveries rose 50% in June compared with May and reached their highest level since the coronavirus crisis spread to Europe in March, but the accelerating recovery failed to prevent first-half deliveries from sliding to a 16-year low.
Figures released by the European planemaker late on Wednesday underscored a collapse in aerospace industry fortunes since early this year, hours after Airbus workers facing job cuts staged their first strike in 12 years.
Deliveries rose to 36 aircraft in June from 24 in May and a low of 14 in April. For the first half, deliveries fell by 49% to 196 planes compared with 389 in the same period last year.
Airbus has said it faces an average 40% drop in business over the next two years, forcing it to cut 15,000 jobs, or 11%, of its workforce. Unions oppose compulsory cuts.
Facing a slump in demand, planemakers have been urging airlines to take planes that have already been built in return for agreement to defer others due at later dates.
Some aircraft, however, are going straight into storage because travel demand is recovering slowly, experts say.
June’s figures suggested negotiations were partially paying off as Airbus handed over three wide-body A350-900 aircraft for European airlines despite a glut of large jets.
But deliveries of many other wide-body aircraft at Airbus and U.S. rival Boeing <BA> remain hampered by weak demand for long-haul travel as a result of the crisis.
Sources said last month that Airbus had sent out dozens of default notices to airlines in a bid to keep deliveries moving.
With airlines focusing on survival, Airbus posted no orders for a second month.
Gross orders so far this year remained at 365 jets, but net orders adjusted for cancellations slipped by one unit to 298, after lessor Avolon cancelled one of 10 A330neos it has ordered.
(Reporting by Tim Hepher and Benoit Van Overstraeten; Editing by Chizu Nomiyama and Leslie Adler)
Having earned its reputation as the new-generation aerial tanker of choice for military services worldwide, Airbus’ A330 Multi Role Tanker Transports (MRTT’s) are now being outfitted for their multi-mission duties in an optimised industrial process – enabling five aircraft to undergo the conversion every year.
The A330 MRTT is based on Airbus’ popular A330 widebody passenger airliner, with the aircraft produced on the company’s commercial airplane final assembly line in Toulouse, France. Once their initial built-up is complete, they are flown to Airbus’ military aircraft facility in Getafe, Spain to be transformed with hardware and systems for their dual roles as an air-to-air refuelling platform and an airlifter for troops and cargo.
Thousands of new parts integrated
During the conversion, Airbus teams install some 16,000 types of new components and approximately 450 new electrical harnesses (for a total cabling length of more than 50 km.), as well as 6,000 brackets and 1,700 connectors.
With 42 A330 MRTTs delivered to date, Airbus’ has reduced the end-to-end transformation time by one month, introducing increased digitalization and applying the “takt” principle of lean production methodology – in which the aircraft moves through the conversion with zero hours pending and zero work orders open.
The digitalization includes the increasing use of Microsoft HoloLens mixed reality headsets instead of computer tablets. With 80 to 90 work orders now produced with HoloLens, the goal is to apply the system during 2020 for 50% of overall work orders, mainly for electrical and hydraulic installations.
A key element of the conversion is installing the A330 MRTT’s air-to-air refuelling hardware. All aircraft are equipped with hose and drogue units, and most customers have opted for Airbus’ highly capable fly-by-wire Aerial Refuelling Boom System (ARBS) – which provides enhanced controllability during in-flight fuel transfers to receiver airplanes.
The A330 MRTT transformation process includes locating the Airbus-developed Air Refuelling Console in the cockpit area behind the pilots. Containing seats for two crew members, this station enables the aerial refuelling to be remotely controlled, aided by an advanced high-resolution observation system with panoramic 3D-vision for operations day and night.
On the A330 MRTT’s main deck, the aircraft’s widebody cross-section can be configured a variety of roles, from the transportation of troops and personnel with capacities for 268 passengers in a two-class configuration, to aeromedical evacuation – accommodating two intensive care units, 16 stretchers, along with seating for medical staff and passengers.
Customers from around the world
Airbus delivered its initial A330 MRTT in December 2009, with this no. 1 aircraft received by the Royal Australian Air Force. Today, A330 MRTTs are flown by Australia, France, Singapore, Saudi Arabia, South Korea, the United Emirates and United Kingdom – logging a combined total of more than 200,000 flight hours.
A total of 60 A330 MRTTs have been ordered for operations at the service of 13 nations.
AKARTA (Reuters) – An Indonesian court on Friday jailed Emirsyah Satar, a former chief executive of Garuda Indonesia, for bribery and money laundering related to procurement of planes and engines from Airbus and Rolls-Royce, his laywer said.
Satar’s lawyer Luhut Pangaribuan said his client had been given an eight-year sentence and fined S$2 million ($1.4 million) by the country’s corruption court.
Indonesia’s Corruption Eradication Commission (KPK) had indicted Satar, CEO of Garuda from 2005 to 2014, over payments from a businessman via a third party for the procurement by Garuda Indonesia of Roll-Royce Trent 700 engines and Airbus A320 and A330 planes.
The indictment also related to the procurement of Airbus planes for PT Citilink Indonesia, a unit of Garuda.
In 2017 Rolls-Royce agreed to pay authorities more than $800 million to settle charges after an investigation by the U.S. Justice Department and Britain’s Serious Fraud Office into alleged bribery of officials in six countries in schemes that lasted more than a decade.
Airbus in February this year agreed to pay a record $4 billion in fines after reaching a plea bargain with prosecutors in Britain, France and United States over alleged bribery and corruption stretching back at least 15 years.
Satar, who had previously denied wrongdoing, will decide next week whether to appeal against his sentence, said Pangaribuan.
($1 = 1.4139 Singapore dollars)
(Reporting by Agustinus Beo Da Costa; Writing by Ed Davies; Editing by David Goodman)
Airbus continues to purchase and supply millions of face masks from China, the large majority of which will be donated to governments of the Airbus home countries, namely France, Germany, Spain and the UK.
An Airbus flight test crew has just completed its latest mission with an A350-1000 test aircraft. This is the third of such missions between Europe and China. The aircraft returned to France with a cargo of 4 million face masks on Sunday 5 April.
The A350-1000 left Toulouse, France, on Friday 3 April, reaching the Airbus site in Tianjin, China on 4 April and returning to Hamburg the same day.
Since mid-March, the previous two missions were performed by an A330-800 and an A330 Multi-Role Tanker Transport (MRTT). Airbus also deployed an A400M and its Beluga fleet to transport shipments of masks between its European sites, in France, Germany, the UK and Spain.
Airbus will continue to support the fight against the Coronavirus pandemic wherever possible.
“I would like to pay tribute to all the Airbus teams, globally, supporting the fight against COVID-19. They’re living our values in assisting those who are saving lives every day”, said Guillaume Faury, Airbus CEO. “
Airbus is focused on the health and safety of its employees and supporting its customers and the industry eco-system with business continuity. At the same time Airbus is contributing to many vital public and private services and working with partners who rely on aircraft, helicopters, space and security solutions to carry out life-saving missions in support of the global pandemic.
Airbus is deploying its employees, their expertise and know-how and leveraging technology in this fight against the COVID-19 pandemic, for example in designing and manufacturing ventilators and 3D printed visors which are critical resources for hospitals.
The Company is partnering with other organisations in unprecedented ways to achieve this goal as fast as possible.
Airline to serve San Francisco and Los Angeles daily
American Samoa weekly starting in April
Hawaiian Airlines is reducing its April flight schedule due to the COVID-19 pandemic with a commitment to continue offering its guests and cargo customers essential service within the Hawaiian Islands and between Hawai‘i and California and the U.S. territory of American Samoa.
The airline will maintain a reduced but still robust schedule of Neighbor Island flights, while bolstering all-cargo service to ensure goods continue to reach communities statewide.
“As Hawai‘i’s airline, we understand that our operation is essential to the state. We serve both guests who rely on us for important travel and the transportation of critical cargo,” said Hawaiian Airlines President and CEO Peter Ingram. “This has been the hallmark of our mission for 90 years and our dedication to our guests remains unchanged as we look to overcome this global crisis together.”
Starting Sunday, Hawaiian’s long-haul transpacific network will consist of one daily nonstop flight between Honolulu (HNL) and Los Angeles (LAX) and San Francisco (SFO), and one weekly flight connecting Hawai‘i to its Pacific island neighbor of Pago Pago, American Samoa (PPG). All routes will be operated with wide-body Airbus A330 aircraft.
The California routes present cargo opportunities to help maintain service for shippers affected by the reduction in passenger flights due to the state of Hawai‘i’s mandatory 14-day quarantine for overseas arrivals starting tomorrow in an effort to prevent the spread of COVID-19. The HNL-PPG route maintains vital service for the territory of American Samoa.
Guests traveling on Hawaiian’s Neighbor Island network will continue to enjoy convenient options throughout the day with 41 daily roundtrip flights scheduled for April. From Honolulu there will be 38 daily flights, including 13 to Maui, eight to Kona, seven to Kaua‘i, six to Hilo, and two each to Lāna‘i and Moloka‘i. From Maui there will be one roundtrip each to Hilo, Kaua‘i and Kona in addition to Honolulu service.
Hawaiian’s schedule reductions for April resulted from the state of Hawai‘i’s quarantine entry restriction and the ensuing drop off of travel to and from the islands. Hawaiian is operating its regularly scheduled long-haul flights through today before it begins suspending routes tomorrow.
Meanwhile, Hawaiian has expanded interisland cargo service to facilitate the movement of essential goods ranging from food to medical equipment and machinery.
On March 3, a fleet of all-cargo ATR-72 aircraft operated by ‘Ohana by Hawaiian began offering flights five days a week between Honolulu and Kahului (OGG) on Maui and Kona (KOA) on the western coast of the Island of Hawai‘i. The new routes add to all-cargo service launched in summer of 2018 between HNL and Līhu‘e (LIH) on Kaua‘i and Hilo (ITO) on the eastern coast of the Island of Hawai‘i.
Hawaiian also utilizes its Boeing 717 passenger fleet to carry critical, time-sensitive cargo like pharmaceuticals and Blood Bank of Hawai‘i shipments.
Hawaiian is still experiencing an unprecedented volume of calls from guests and respectfully asks that only those with immediate travel needs contact the airline for assistance. Options to reach Hawaiian’s reservations team, to make online changes to tickets, and to see a list of travel waivers are available at Hawaiian’s COVID-19 hub.
The airline also explains how it is keeping employees and guests safe by disinfecting aircraft and airport spaces, modifying boarding processes to prevent congestion at the gate, and adjusting in-flight services such as by distributing disposable sanitizing wipes.
Airbus A400M transports masks to Spain in support of COVID-19 crisis relief efforts
An Airbus A400M airlifter has performed an air-bridge between Toulouse and Madrid in order to deliver critically-needed mask supplies to the Spanish health system.
The aircraft, known as MSN56 and operated by an Airbus crew, took off on 23rd March 2020 from Airbus’ headquarters in Toulouse at 18.07 local time (CET) landing at the Getafe Air Base (Madrid) at 19.05 to off-load and deliver the masks to the Spanish Ministry of Defence.
The cargo is part of the approximately 2 million masks transported over the weekend by a test Airbus A330-800 aircraft from Tianjin, China, to Europe.
This air-bridge will enable the delivery of a significant supply of masks to the Spanish public health network in support of current COVID-19 crisis efforts. This comes on top of donations by Airbus in recent days to provide thousands of masks to hospitals and public services around Europe. The Company will continue to support with additional flights planned to take place in the coming days in coordination with national authorities.
PARIS (Reuters) – Airbus <EADSY> said in a stock market filing on Monday that customers could seek to cancel or postpone delivery of airliners and helicopters as the coronavirus crisis continues to escalate.
It issued the warning in an annual reference document ahead of its upcoming Amsterdam shareholder meeting, for which it urged participants to vote by proxy rather than attend in person due to widespread measures to slow the spread of the disease.
Airbus Chief Executive Guillaume Faury said earlier that several airlines had asked to defer deliveries, but that most were continuing to pay their deposits.
“Weaker market and economic conditions in China and their knock-on effects in other markets could result in requests by customers to postpone delivery or cancel existing orders for aircraft (including helicopters),” the filing said, though Faury said earlier there were some signs of recovery in China.
Airbus also detailed steps to improve compliance practices after paying a 3.6-billion-euro fine last month to settle a four-year multinational bribery probe.
But it warned that possible further investigations in other jurisdictions could trigger claims against it by shareholders, impact its ability to raise finance or limit its eligibility for public contracts, as well as harm future commercial sales.
Malaysian authorities last week cleared AirAsia Group <5099.KL> after Britain’s Serious Fraud Office faulted a sponsorship deal between former Airbus parent EADS and a motor racing team owned by the airline’s co-founders.
But the SFO probe, supported by Airbus’s own lawyers, caused a severe rift between AirAsia and its sole supplier, adding to doubts over whether long-haul unit AirAsiaX will take delivery of A330neo jets on order, three people close to the matter said.
AirAsia officials could not be reached for comment. Airbus declined comment.
Loss-making AirAsiaX has said only that it wants to defer delivery of A330neo jets due to the coronavirus crisis.
Deliveries of the wide-body aircraft have also been hit by the impact of U.S. tariffs on Airbus aircraft under a long-running trade dispute, as well as concerns about overcapacity.
Airbus trimmed A330 output in January from about four a month in 2019, Reuters reported earlier this month.
In Monday’s filing, Airbus said it would maintain production of the A330neo at 3.5 aircraft a month.
(Reporting by Tim Hepher; Editing by Mark Potter, William Maclean)
Aeroflot, the Russian flag carrier and member of the SkyTeam alliance, has taken delivery of its first A350-900, becoming the launch operator of the latest-generation widebody aircraft in Eastern Europe and CIS. Aeroflot’s A350-900 features a distinctive new livery embracing its almost 100-year heritage. Aeroflot has a total of 22 A350-900 aircraft on order and operates an Airbus fleet of 126 aircraft (107 A320 Family and 19 A330 Family aircraft).
Aeroflot’s A350-900 features a brand new elegant cabin design, offering unrivalled passenger comfort. The aircraft has a spacious three-class cabin layout with 316 seats: 28 private Business Class suites with full-flat seats, 24 Comfort Class with extra legroom and 264 Economy Class. In addition, the latest-generation Panasonic eX3 in-flight entertainment system, HD screens and Wi-Fi connectivity will ensure enhanced experience for all passengers on long-haul flights. Aeroflot will operate its A350-900 from Moscow to a number of destinations including London, Dubai, New York, Miami, Osaka and Beijing.
The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments – up to ultra-long haul (9,700 nm). Its Airspace by Airbus cabin is the quietest of any twin-aisle aircraft and offers passengers and crews the most modern in-flight flying experience. The aircraft features the latest aerodynamic design, a carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce Trent XWB engines. Together, these latest technologies result in 25% lower operating costs, as well as 25% reduction in fuel burn and CO2 emissions compared with previous-generation competing aircraft – demonstrating Airbus’ commitment to minimise its environmental footprint while remaining at the cutting edge of air travel.
Bombardier transfers its remaining interest in Airbus Canada Limited Partnership (Airbus Canada) to Airbus SE and the Government of Québec
Airbus now holds 75 percent of Airbus Canada with the Government of Québec increasing its holding to 25 percent for no cash consideration
Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Québec
Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada
Over 3,300 Airbus jobs secured in Québec
Amsterdam / Montreal – Airbus SE (EADSY), the Government of Québec and Bombardier Inc. (BBD-B.TO) have agreed upon a new ownership structure for the A220 program, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately.
This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 – three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.
This new agreement underlines the commitment of Airbus and the Government of Québec to the A220 programme during this phase of continuous ramp-up and increasing customer demand. Since Airbus took majority ownership of the A220 programme on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.
“This agreement with Bombardier and the Government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore it extends our trustful partnership with the Government of Québec. This is good news for our customers and employees as well as for the Québec and Canadian aerospace industry,” said Airbus Chief Executive Officer Guillaume Faury. “I would like to sincerely thank Bombardier for the strong collaboration during our partnership. We are committed to this fantastic aircraft programme and we are aligned with the Government of Québec in our ambition to bring long-term visibility to the Québec and Canadian aerospace industry.”
“I am proud that our government was able to reach this agreement. We have succeeded in protecting paying jobs and the exceptional expertise developed in Québec, despite the major challenges we faced in this regard when we took office. We have consolidated the government’s position in the partnership, while respecting our commitment not to reinvest in the program. By opting to strengthen its presence here, Airbus has chosen to focus on our talents and our creativity. The decision of an industrial giant like Airbus to invest more in Québec will help attract other world-class prime contractors,” the Premier of Québec, François Legault, stated.
“This agreement is excellent news for Québec and its aerospace industry. The A220 partnership is now well established and will continue to grow in Québec. The agreement will allow Bombardier to improve its financial situation and Airbus to increase its presence and footprint in Québec. It’s a win–win situation for both the private partners and the industry,” pointed out Pierre Fitzgibbon, Minister of the Economy and Innovation.
With this transaction, Bombardier will receive a consideration of $591M from Airbus, net of adjustments, of which $531M was received at closing and $60M to be paid over the 2020-21 period. The agreement also provides for the cancellation of Bombardier warrants owned by Airbus, as well as releasing Bombardier of its future funding capital requirement to Airbus Canada.
“This transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aerospace,” said Alain Bellemare, President and CEO Bombardier, Inc. “We are incredibly proud of the many achievements and tremendous impact Bombardier had on the commercial aviation industry. We are equally proud of the responsible way in which we have exited commercial aerospace, preserving jobs and reinforcing the aerospace cluster in Québec and Canada. We are confident that the A220 program will enjoy a long and successful run under Airbus’ and the Government of Québec’s stewardship.”
The single aisle market is a key growth driver, representing 70 percent of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the A220 is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats).
As part of the agreement, Airbus has acquired the Airbus A220 and A330 work package production capability from Bombardier in Saint-Laurent, Québec. These production activities will be operated in the Saint Laurent site by Stelia Aéronautique Saint Laurent Inc., a newly created subsidiary of Stelia Aerospace, which is a 100 percent Airbus subsidiary.
Stelia Aéronautique Saint-Laurent will continue the production of the A220 cockpit and aft fuselage production, as well as A330 workpackages, for a transition period of approximately three years at the Saint-Laurent facility. A220 workpackages will then be transferred to the Stelia Aerospace site in Mirabel to optimize the logistical flow to the A220 Final Assembly Line also located in Mirabel. Airbus plans to offer all current Bombardier employees working on the A220 and A330 work packages at Saint-Laurent opportunities around the A220 programme’s ramp-up, ensuring know-how retention as well as business continuity and growth in Québec.
At the end of January 2020, 107 A220 aircraft were flying with seven customers on four continents. In 2019 alone, Airbus delivered 48 A220s, with the further ramp-up to be continued.
The BelugaXL has entered into service, providing Airbus with 30% extra transport capacity in order to support the on-going production ramp-up of commercial aircraft programmes.
The aircraft, which is an integral part of Airbus’ industrial system, made its first operational flight on 9 January. This is the first of six BelugaXL to begin work alongside the BelugaST predecessors, with the additional aircraft being introduced between 2020 and 2023.
Launched just over five years ago, in November 2014, the entry into service milestone marks yet another successful achievement for the internal aircraft programme that was awarded Type Certification by the European Aviation Safety Agency (EASA) in November 2019, following an intensive flight test campaign that saw the BelugaXL complete more than 200 flight tests, clocking over 700 flight hours.
At 63 metres long and 8 metres wide, the BelugaXL has the largest cargo bay cross-section of all existing cargo aircraft worldwide. The BelugaXL can carry two A350 XWB wings compared to the BelugaST, which can only carry one. With a maximum payload of 51 tonnes, the BelugaXL has a range of 4,000 km. (2200nm).
The BelugaXL is based on an A330-200 Freighter, enabling the re-use of existing components and equipment, and is powered by Rolls-Royce Trent 700 engines. The lowered cockpit, the cargo bay structure and the rear-end and tail were newly developed jointly with partners, giving the aircraft its distinctive look.
The BelugaXL is the latest addition to Airbus’ transportation portfolio. While air transport remains the primary method for transporting large aircraft components, Airbus also uses road, rail and sea transport to move parts between its production sites. Like the BelugaST, the aircraft will operate from 11 destinations in Europe, continuing to strengthen industrial capabilities and enabling Airbus to deliver on its commitments.
