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Boeing Wins More 737-800BCF Orders and Launches New Freighter Conversion Lines to Meet Strong Demand

– The 737-800BCF now has 134 orders and commitments

– Two additional freighter conversion lines are launched to meet strong demand in express traffic and e-commerce markets

Boeing [NYSE: BA] today announced a firm order from an unidentified customer for two 737-800 Boeing Converted Freighters (BCF), as well as agreements to open additional conversion lines in Guangzhou, China, and Singapore to meet strong market demand.

Based on the popular Next-Generation 737, the 737-800BCF offers operators newer technology, lower fuel consumption and higher reliability than other standard-body freighters. Primarily used to carry express cargo on domestic or short-haul routes, the airplane is capable of carrying up to 23.9 tonnes (52,800 pounds) and flying up to 2,000 nautical miles (3,750 kilometers).

The 737-800BCF now has 134 orders and commitments.

The new 737-800BCF line at Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO) is scheduled to open in early 2021, marking the MRO’s second conversion line for the market-leading 737-800BCF. To date, Boeing has delivered 36 737-800BCF to more than 10 operators across four continents.

Boeing will also add a second conversion line for its widebody converted freighter, the 767-300BCF, at ST Engineering’s facility in Singapore. The second line is scheduled to open later this year.

The world’s most efficient freighter in its class, the Boeing 767 freighter family offers the lowest operating costs per trip and allows airlines to develop new opportunities in the long-haul, regional and feeder markets. The 767-300BCF has virtually the same cargo capability as the 767-300F production freighter with up to 56.5 tonnes (124,600 pounds) of payload and flying up to 3,350 nautical miles (6,190 kilometers).

The Boeing freighter family, which includes production and converted freighters, provides more than 90 percent of the world’s freighter capacity, offering an unmatched selection of capacity and capability with superior economics in every freighter size.

3D imagery, 737-800W, NG, 737, -800, -900, -700, -600

Rolls-Royce & Shanghai Cooltech to Jointly Produce Generator Sets in China

Rolls-Royce’s business unit Power Systems and Shanghai Cooltech Power Co. Ltd., a leading Chinese manufacturer of power generation systems, have made a significant step forward together to strengthen their market position by forming a 50/50 joint venture. MTU Cooltech Power Systems will produce backup generator sets powered by MTU Series 1600, 2000 and 4000 engines for applications including but not limited to hospitals, airports, mining, semiconductors, telecoms and the rapidly growing data centre market, which has recently received a significant boost from the Chinese government’s newly announced New Infrastructure development plan, a programme launched by the central government to accelerate the digital transformation of the economy.

– New 50/50 joint venture established in Shanghai to serve the growing Chinese market

– Purpose is to establish a stronger position in the backup power supply market, with a focus on data centers

– Production of generator sets equipped with MTU engines to start at end of 2020

Tobias Ostermaier, President MTU Greater China, Rolls-Royce Power Systems, said: “This is an important step to further accelerate our fast-growing business in China. We pursue our growth strategy for diesel systems in China and move further towards becoming a provider of integrated power solutions in this strategically important market. We look forward to being in a position to supply our customers with world class MTU system solutions at China speed. The Chinese market presents tremendous opportunities for Power Systems’ business growth in a challenging global environment. We have an important role to play in ensuring power for China’s New Infrastructure such as telecommunications networks, servers, and data centres through our best-in-class safety-critical MTU power solutions.”

Xu Nai Qiang, President of Shanghai Cooltech Power, said: “We are proud to form the new joint venture with Rolls-Royce, which enables us to manufacture products of the highest quality for the Chinese market, and  to continue and enhance the success story of our long-standing collaboration.”

Rolls-Royce and Shanghai Cooltech Power have enjoyed a close partnership since 2013. Shanghai Cooltech Power is one of the biggest customers of the Power Systems business unit in China and has already installed nearly 1,000 MTU engines in backup generator sets. A key focus has been the telecommunications market, which will also be a major target now for the new joint venture.

MTU Cooltech Power Systems is to have a workforce of around 50 employees when it is launched this year. The joint venture will produce a range of generator sets based on MTU engines, which are to be supplied from Germany and China. Rolls-Royce and Shanghai Cooltech Power will then market and deliver these generator sets to their Chinese customers.

Having production in China will shorten delivery times significantly. Combined with direct access to the high quality and competitively priced supply chain in China, MTU system solutions will establish a highly competitive position in the China market. “As a result, we will be in a better position to adapt our product range to market requirements and to provide our customers with local support. Irrespective of the new joint venture, we will maintain our long-standing strategic partnerships and well-established collaboration with our community of Chinese partners in the field of decentralised power supply systems, and will systematically continue and strengthen these partnerships,” said Tobias Ostermaier.

Increasing market share in China, in addition to setting up and developing partnerships, are key elements of the PS 2030 strategy with which the Rolls-Royce business unit Power Systems is currently transforming itself from an engine manufacturer to a provider of integrated solutions.

Rolls-Royce has been producing MTU engines in China since 2006 and formed joint ventures with Chinese manufacturers to continue localizing its footprint over the years. The founding of MTU Cooltech Power Systems will help accelerate its localization in China to seize business opportunities and better serve the market.

Rolls-Royce’s business unit Power Systems and Shanghai Cooltech Power Co. Ltd. have agreed to form MTU Cooltech Power Systems: The 50/50 joint venture will produce backup generator sets powered by MTU engines in China. In the picture: Generator set with a 20V 4000 MTU engine. Der Geschäftsbereich Power Systems von Rolls-Royce und Shanghai Cooltech Power Co. Ltd. haben gemeinsam MTU Cooltech Power Systems gegründet. Das 50/50-Joint Venture wird Notstromaggregate mit MTU-Motoren in China produzieren. Im Bild: Aggregat auf Basis eines 20V-4000-MTU-Motors.

Italian Order Highlights Continuing Success of ACH160

Airbus Corporate Helicopters (ACH) has won a new order for its latest ACH160 helicopter, announced just days after the H160 achieved certification.

This new order, placed by an experienced Italian operator for use on private and corporate flights mainly inside Italy, means the ACH160 has been ordered by customers in eight countries across North America, Latin America, Europe, China and South-East Asia.

The client, an existing ACH twin-engined helicopter operator, has specified a customised interior configured for six passengers.

The ACH160 is the premium version of the new H160 helicopter which was certified by EASA on 1 July ready for deliveries to private and business customers commencing later this year. It is the latest member of the ACH family and the most technologically advanced helicopter in its class.

As well as its range of stylish interiors including bespoke solutions, the ACH160 offers a smooth and quiet ride allied to the Helionix advanced digital avionics system ensuring carefree handling and the highest level of safety.

Frederic Lemos, Head of ACH, said: “This new order from a highly knowledgeable ACH customer is yet more evidence of the strong welcome being received by the ACH160 in this demanding sector even at a notably challenging time for the helicopter market.”

The full ACH helicopter range consists of the ACH125, ACH130, ACH135, ACH145, ACH160 and ACH175 variants of Airbus Helicopters’ comprehensive and market-leading family of light and medium models. A range of premium-design aircraft completions, including bespoke designs, is available for all models.

Customers Harness Boeing’s Services Solutions to Support Operations and Growth

  • Leading carriers, including Alaska Airlines, Japan Airlines, and All Nippon Airways, choose Boeing Global Services supply chain support despite current market challenges
  • Digital solutions enhance operational efficiency with data-driven analytics

Boeing [NYSE: BA] announced a number of services orders and agreements to support international customers, streamline their operations and enhance their future growth. These supply chain solutions will simplify customers’ asset and maintenance management, inventory and operating costs, while improving parts availability. The agreements for Boeing’s digital solutions will provide cost savings fleet-wide, enhance airline crew situational awareness and increase operational efficiency. “As airlines and operators continue to respond to the current challenges facing the global air travel industry, our partners are moving forward, integrating creative solutions to continue connecting people around the world,” said Ted Colbert, president and CEO, Boeing Global Services. “Boeing is working closely with our customers around the world, delivering the customized solutions they need to improve operational efficiency, support their fleets, and reduce their costs.”

Supply chain agreements include:

Alaska Airlines signed its largest consumable and expendable services agreement, with a multiyear agreement for solutions which include a Tailored Parts Package and Quick Engine Change kits. The agreement supports Alaska’s fleet of Boeing 737 airplanes and provides price and availability benefits that allow the airline to streamline its maintenance operations. The Tailored Parts Package consists of 2,900 part numbers. Throughout the term of this three-year agreement, Boeing anticipates the shipment of nearly 800,000 parts and four Quick Engine Change kits, which will be used to configure spare engines to allow for quick return of an airplane to service when an engine needs to be repaired or replaced.

All Nippon Airways, the largest airline in Japan, announced a partnership with Boeing Global Services to install a 787-9 galley facility in its new training center to enhance crew training opportunities. All Nippon Airways also signed an agreement for ten 767 Quick Engine Change kits.

Agreements for data-driven solutions include:

Xiamen AirlinesJapan Airlines, and All Nippon Airways have signed agreements to acquire the Optimized Maintenance Program that combines advanced data analytics with Boeing’s engineering expertise to help airlines achieve greater airplane availability and more efficient maintenance operations. To date, the Optimized Maintenance Program has been delivered to 24 airlines and approved by their local regulatory agencies to support a total of 2,519 Boeing airplanes across several models. Xiamen is the first airline in China to adopt the program.

A number of customers in China, including Suparna AirlinesZheijiang Loong AirlinesWest AirGuangxi AirUrumqi Air, and Air Changan signed agreements for Boeing digital solutions that enhance operational efficiency, further streamline paperless operations in the flight deck, and optimize flight planning capabilities. Boeing provides tailored charting for more than 74 percent of the commercial aviation market; supplies digital navigation data to more than 58 percent of global airlines; and delivers flight deck solutions to 67 percent of the world’s airlines. Overall, two-thirds of all global airline flights use Jeppesen FliteDeck Pro electronic flight bag (EFB) navigation and charting applications on a daily basis.

Vistara, an Indian full-service carrier and a joint venture of Tata group and Singapore Airlines, has added to their suite of Boeing Global Services crew solutions with a multiyear agreement for Crew Pairing to improve operational and readiness efficiency and reduce airline costs. The solution will help optimize crew planning operations for approximately 1,100 crew members across Vistara’s 40 Boeing and Airbus aircraft.

Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. A top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 160,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.

US & China to Allow 4 Weekly Flights Each for Airlines

  • 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)

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

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)

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

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 to Operate Limited Passenger Flights in May

Emirates is set to operate limited passenger services to Frankfurt (02, 04, 06, 09, 11, 13 May), London Heathrow (03, 05, 07, 10, 12, 14 May), Manila (3, 6, 8, 10, 13, 15, 16 May), Sao Paulo (3 May), and Shanghai (2 May). The one-way special flights will facilitate travel for residents and visitors wishing to return home.

Those who wish to travel to Shanghai must contact the embassy or consulate of the People’s Republic of China in the UAE. For all other flights, passengers can book directly on emirates.com or via their travel agent.

Only citizens of the destination countries, and those who meet the entry requirements of the destination will be allowed to board. Customers will be required to follow all health and safety measures required by the UAE authorities and the country of destination.

Similar to other repatriation flights that Emirates has operated thus far, for health and safety reasons, the airline will offer a modified inflight service that reduces contact, and the risk of infection. Magazines and print reading material will not be available. Meals on-board will be served in hygienic prepacked meal boxes, offering customers sandwiches, beverages, snacks, and desserts. A selection of hot snacks will also be served on long-haul flights.

Emirates’ Lounge and Chauffeur Drive services will be temporarily unavailable during this period and in-flight Wi-Fi service is available for purchase only. On board Emirates’ flights, seats are pre-allocated where possible with vacant seats placed between individual passengers or family groups in observance of physical distancing protocols. More information is available on emirates.com.

Cabin baggage will not be accepted on these flights. Carry-on items allowed in the cabin will be limited to laptop, handbag, briefcase or baby items. All other items have to be checked in, and Emirates will add the cabin baggage allowance to customers’ check-in baggage allowance.

Passengers are required to apply social distancing guidelines during their journey and wear their own masks when at the airport and on board the aircraft. Travellers should arrive at Dubai International airport Terminal 3 for check-in, three hours before departure. Emirates’ check-in counters will only process passengers holding confirmed bookings to the above destinations.

All Emirates aircraft will go through enhanced cleaning and disinfection processes in Dubai, after each journey.

United Airlines Sells 22 Airplanes to Bank of China Aviation

HONG KONG, April 19 (Reuters) – United Airlines will sell and lease back 22 planes to Bank of China (BOC) Aviation, a statement from the aircraft investor released to the Hong Kong Stock Exchange said on Sunday.

The deal involves six Boeing 787-9 aircraft and 16 Boeing 737-9 MAX aircraft from United Airlines, the statement said.

The Singapore-based BOC Aviation did not reveal how much the purchase was worth but said the planes would be leased back to United on long-term agreements.

United said on Wednesday it had reduced its flight schedule in May by 90% and expects similar cuts for June as a result of the coronavirus pandemic.

The U.S. airline also said it flew less than 200,000 people in the first two weeks of April, a 97% drop from the more than 6 million people it flew during the same time in 2019.

BOC Aviation, which focuses on aircraft leasing, has a fleet of 567 planes owned, managed or on order as at the end of March, the statement said

The transaction was finalised on Friday and the deal is expected to close later this year, the statement said.

(Reporting by Scott Murdoch. Editing by Jane Merriman)

CDB Financial Scraps Purchase of 29 Boeing 737 MAX Jets

SYDNEY (Reuters) – China Development Bank (CDB) Financial Leasing Co said on Monday it had agreed with Boeing Co <BA.N> to cancel the purchase of 29 undelivered 737 MAX jets, adding to a string of recent cancellations of the grounded airplane.

The model has been grounded globally for more than a year following deadly crashes in Indonesia and Ethiopia.

“In light of evolving aviation market dynamics, we’ve been working together with Boeing over many months to re-calibrate our MAX orderbook to be in line with our long-term view of the market and related opportunities,” Xuedong Wang, chairman of CDB Financial unit CDB Aviation, said in a statement.

The lessor said it retained an order for another 70 of the planes that also have yet to be delivered.

Boeing recorded a total of 150 MAX cancellations in March, including 75 from Irish leasing company Avolon. Boeing remains in talks with regulators seeking approval to return the plane to service, but its customers have also seen a sharp fall-off in demand due to the coronavirus pandemic.

Boeing said in a statement it continued to partner with leasing company customers to help them balance their portfolios in a challenging market.

“As we work to return the 737 MAX to service, our focus remains on addressing our customers’ fleet needs while optimising the delivery of the more than 4,000 airplanes in our 737 backlog,” it said.

“As market conditions normalise, Boeing anticipates that lessors who have restructured or reduced their orderbooks will continue to add MAX aircraft to their portfolios through sale leaseback agreements with airlines,” the planemaker said. “Longer term we expect these lessors will again place orders for direct MAX purchases.”

CDB Financial Leasing said that all 737 MAX 10 jets still on order will be switched to the smaller 737 MAX 8 model, and 20 deliveries will be deferred to dates in 2024, 2025 and 2026.

(Reporting by Jamie Freed; additional reporting by David Shepardson in Washington Editing by Tom Hogue and Muralikumar Anantharaman)

A Boeing 737 Max aircraft is seen parked in a storage area at the company’s production facility in Renton
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