MONTREAL/WINNIPEG, Nov 18 (Reuters) – Canada’s Liberal government sent two ministers on Monday to meet with representatives of Canadian National Railway Ltd and its largest union, as already hard-hit shippers pleaded for government intervention to avert a strike planned for early on Tuesday.
The threatened strike by 3,000 workers with Teamsters Canada comes after CN, the country’s largest railroad operator, said on Friday it would cut management and union jobs, as it grapples with softer economic conditions.
Labor Minister Patty Hajdu and Transportation Minister Marc Garneau were to meet with representatives from CN and the union in Montreal, Hajdu’s press secretary Veronique Simard said, following a stalemate in contract talks.
CN said it believes a strike can be averted “with the assistance of federal mediators,” after Teamsters declined to submit to binding interest arbitration. “We expect talks to continue up to Nov. 19,” CN said. Teamsters and CN reached a last-minute deal in 2017 that averted a planned strike. Canada, one of the world’s biggest exporters of farm products, relies on its two main railways to move canola and wheat over the vast distances from western farms to ports. Crude oil shippers in Alberta have also used trains in the past two years to reach U.S. refineries as an alternative to congested pipelines.
Alberta wheat and barley commissions, representing farmers, urged Ottawa to intervene, as they are already facing difficult harvest conditions because of weather. “There are a lot of farmers who already have a significant amount of their income trapped under snow,” said Gary Stanford, Alberta Wheat Commission chair. “Now adding insult to injury, we’re looking at possible CN rail strike action too.”
CN was expecting slightly lower fourth-quarter crude shipments from the third quarter, officials said on an Oct. 22 conference call.
Slumping commodity prices, congested oil pipelines and a dispute with China that has hampered Canadian agriculture exports have pressured the economies of resource-rich western provinces.
Teamsters Canada spokesman Christopher Monette said the planned strike by its conductors, train personnel and yard workers comes because workers are “hitting a wall on issues related to health and safety.”
“While we continue to negotiate in good faith and in hopes of avoiding a labor dispute, we have every intention of striking at 00:01 a.m. ET tonight (0501 GMT) unless an agreement can be reached before then,” Monette said by email.
CN shares were trading down 0.5% in early afternoon Toronto trading.
(Reporting By Allison Lampert in Montreal and Rod Nickel in Winnipeg; Additional reporting by Kelsey Johnson in Ottawa; Editing by Tom Brown and Marguerita Choy)
DUBLIN (Reuters) – The European Cockpit Association (ECA) pilot group has urged regulators to take action over what it described as a “safety hazard” caused by Ryanair’s <RYAAY> approach to flight crews’ sick leave, according to a letter seen by Reuters.
Europe’s largest budget carrier has spent the last two years negotiating improved pay and conditions with its pilots and cabin crew after a revolt by some staff forced it to recognize trade unions for the first time.
The ECA, which represents pilots’ associations in 33 European countries, said Ryanair adopts a practice of systematically questioning absences due to certified sickness, leading to investigative and disciplinary meetings where staff are threatened with potential dismissal.
Asked about the ECA’s concerns, a Ryanair spokeswoman said the airline operates “a standard sick pay scheme, and like all employers, manages absenteeisms”.
The airline, which has never had a fatal crash and has one of the youngest fleets in Europe, regularly cites safety as its top priority.
The ECA said it raised the issue with the European Union Aviation Safety Agency (EASA) a year ago but that Ryanair’s “problematic approach” to flight crew’s sickness has not substantially changed.
“In fact, we are concerned that the safety hazard created by this approach remains fully in place, must be considered endemic, and quite evidently is not adequately addressed by the competent national authority: the Irish Aviation Authority (IAA),” the letter dated Nov. 5 said.
A spokeswoman for the ECA confirmed it had sent such a letter to the regulator, the second in a year, and that it was concerned that the safety hazard related to Ryanair’s policy remains unaddressed.
In the letter, the ECA said it was aware that the EASA raised the matter with the IAA following the initial complaint but that the Irish regulator told one of the ECA’s member groups that it was satisfied there was not a systematic issue of crews flying while unfit due to fear of sanction at Ryanair.
The IAA did not immediately respond to a request for comment.
Citing letters sent to staff, the ECA said Ryanair or broker agencies overseeing agency workers used by the airline have gone as far as threatening to halt pilots’ career progression, due to their sickness rate.
The pilot group called on the European regulator to ensure the IAA adequately fulfils its safety oversight role by summoning Ryanair to stop the practice of intimidating letters and investigative proceedings and also carry out an independent confidential survey among Ryanair crew.
(Story by Conor Humphries and Padraic Halpin, editing by Giles Elgood)
FILE PHOTO: A Ryanair commercial passenger jet takes off in Blagnac near Toulouse
Strong Net Rooms Growth Fuels Nearly 11% Increase in Management and Franchise Fees
CHICAGO (October 30, 2019) – Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) today reported third-quarter 2019 financial results. Net income attributable to Hyatt was $296 million, or $2.80 per diluted share, in the third quarter of 2019, compared to $237 million, or $2.09 per diluted share, in the third quarter of 2018. Adjusted net income attributable to Hyatt was $39 million, or $0.37 per diluted share, in the third quarter of 2019, compared to $37 million, or $0.33 per diluted share, in the third quarter of 2018. Refer to the table on page 14 of the schedules for a summary of special items impacting Adjusted net income and Adjusted earnings per share in the three months ended September 30, 2019.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, “The strength of our brands and the consistent approach we have to operating with excellence and efficiency are serving us very well in this period of volatile economic conditions. In particular, our management and franchise fee growth of nearly 11% this quarter is driven by roughly 13% year-over-year net rooms growth. Further, we have successfully increased productivity and operating efficiency for 23 straight quarters which has allowed us to maintain strong hotel operating margins even in the face of flat RevPAR growth this quarter.”
Third quarter of 2019 financial highlights as compared to the third quarter of 2018 are as follows:
Net income increased 25.4% to $296 million.
Adjusted EBITDA decreased 7.3% to $163 million, a decrease of 6.5% in constant currency.
Comparable system-wide RevPAR was flat, including a decrease of 0.1% at comparable owned and leased hotels. Comparable system-wide RevPAR growth was favorably impacted by approximately 50 basis points from the timing of the Jewish holidays, but was offset by a similar reduction resulting from political unrest in Hong Kong.
Comparable U.S. hotel RevPAR decreased 0.6%; full service hotel RevPAR increased 0.2% and select service hotel RevPAR decreased 2.3%.
Net rooms growth was 13.2%, or 7.9% excluding the acquisition of Two Roads Hospitality LLC (“Two Roads”) in the fourth quarter of 2018.
Comparable owned and leased hotels operating margin decreased 20 basis points to 21.0%.
Adjusted EBITDA margin of 26.9% decreased 280 basis points in constant currency.Mr. Hoplamazian continued, “We continue to execute on our capital strategy and shift our earnings profile while maintaining our focus on global growth. We expect to end the year with approximately 57% of our earnings coming from our hotel management and franchise business, an increase of roughly 400 basis points from 2018. Our pipeline remains robust while continuing to deliver solid organic net rooms growth of almost 8% this quarter, net of the acquisition of Two Roads in the fourth quarter of 2018. While theNote: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
current global operating environment is challenging, we feel confident in our ability to manage through volatility and identify opportunities to strengthen our brands and performance.”
Third quarter of 2019 financial results as compared to the third quarter of 2018 are as follows:
Management, Franchise and Other Fees
Total management, franchise and other fees increased 11.9% (12.5% increase in constant currency) to $148 million. Base management fees increased 17.8% to $64 million, primarily in the Americas management and franchising segment due to the acquisition of Two Roads. Incentive management fees decreased 1.3% to $33 million. Franchise fees increased 11.8% to $37 million. Other fees increased 22.0% to $14 million. Excluding other fees, management and franchise fees increased 10.9% (11.6% increase in constant currency) to $134 million.
Americas Management and Franchising Segment
Americas management and franchising segment Adjusted EBITDA increased 11.2% (11.4% increase in constant currency), driven by higher management, franchise, and other fees from the Two Roads acquisition and recently opened hotels. RevPAR for comparable Americas full service hotels increased 1.5%, occupancy increased 70 basis points, and ADR increased 0.7%. RevPAR growth was driven by strength in certain resort locations outside of the United States and benefited from the timing of the Jewish holidays which had an approximate 110 basis point favorable impact. RevPAR for comparable Americas select service hotels decreased 2.4%, occupancy decreased 40 basis points, and ADR decreased 1.8%. Total Americas management and franchising adjusted revenues increased 29.6% (29.9% increase in constant currency) including revenue from the residential management operations acquired as part of Two Roads.
Transient rooms revenue at comparable U.S. full service hotels increased 1.0%, room nights increased 2.3%, and ADR decreased 1.3%. Group rooms revenue at comparable U.S. full service hotels decreased 0.2%, room nights decreased 2.3%, and ADR increased 2.2%.
Americas net rooms increased 11.5% compared to the third quarter of 2018, or 5.2% excluding Two Roads.
Southeast Asia, Greater China, Australia, South Korea, Japan and Micronesia (ASPAC) Management and Franchising Segment
ASPAC management and franchising segment Adjusted EBITDA increased 0.9% (2.5% increase in constant currency). RevPAR for comparable ASPAC full service hotels decreased 2.0%, reflecting weakness in Hong Kong. Excluding Hong Kong, RevPAR for comparable ASPAC full service hotels would have increased 0.8%. Occupancy decreased 50 basis points and ADR decreased 1.3% for ASPAC full service hotels. Revenue from management, franchise, and other fees increased 4.2% (5.4% increase in constant currency).
ASPAC net rooms increased 17.7% compared to the third quarter of 2018, or 13.7% excluding Two Roads.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising Segment
EAME/SW Asia management and franchising segment Adjusted EBITDA increased 4.8% (7.8% increase in constant currency). RevPAR for comparable EAME/SW Asia full service hotels increased 1.6%, driven by strong growth in certain European markets, including France and the United Kingdom, and Southwest Asia, offset partially by weaker performance in Russia which lapped the FIFA World Cup in 2018.
Occupancy increased 290 basis points and ADR decreased 2.6% for EAME/SWA full service hotels. Revenue from management, franchise, and other fees increased 2.2% (4.3% increase in constant currency).
EAME/SW Asia net rooms increased 15.6% compared to the third quarter of 2018, or 14.4% excluding Two Roads.
Owned and Leased Hotels Segment
Total owned and leased hotels segment Adjusted EBITDA decreased 17.6% (16.9% decrease in constant currency), including a decrease of 12.0% (11.4% decrease in constant currency) in pro rata share of unconsolidated hospitality ventures Adjusted EBITDA. Refer to the table on page 11 of the schedules for a detailed list of portfolio changes and the year-over-year net impact to total owned and leased hotels segment Adjusted EBITDA.
Owned and leased hotels segment revenues decreased 3.9% (3.0% decrease in constant currency), and was negatively impacted by non-comparable hotels. RevPAR for comparable owned and leased hotels decreased 0.1%. Occupancy and ADR were both flat.
Corporate and Other
Corporate and other Adjusted EBITDA decreased 22.4% (22.5% decrease in constant currency), inclusive of $6 million of expenses from the Two Roads acquisition.
Corporate and other adjusted revenues increased 19.1% (consistent in constant currency).
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased 1.0%, inclusive of rabbi trust impact and stock- based compensation. Adjusted selling, general, and administrative expenses increased 13.8%, or $10 million, including $8 million of integration costs related to the acquisition of Two Roads. Refer to the table on page 17 of the schedules for a reconciliation of selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses.
OPENINGS AND FUTURE EXPANSION
Twenty hotels (or 4,422 rooms) opened in the third quarter of 2019, contributing to a 13.2% increase in net rooms compared to the third quarter of 2018. Excluding the impact of the Two Roads acquisition, net rooms increased 7.9% compared to the third quarter of 2018.
As of September 30, 2019, the Company had executed management or franchise contracts for approximately 460 hotels, or approximately 92,000 rooms. The Company is expected to open approximately 85 hotels in the 2019 fiscal year.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
SHARE REPURCHASE/DIVIDEND
During the third quarter of 2019, the Company repurchased a total of 1,776,891 (1,099,507 Class A shares and 677,384 Class B shares) for approximately $133 million. The Company ended the third quarter with 36,811,374 Class A and 66,438,444 Class B shares issued and outstanding. From October 1 through October 25, 2019, the Company repurchased 523,499 shares of Class A common stock for an aggregate purchase price of approximately $37 million. As of October 25, 2019, the Company had approximately $351 million remaining under its share repurchase authorization.
The Company’s board of directors has declared a cash dividend of $0.19 per share for the fourth quarter of 2019. The dividend is payable on December 9, 2019 to Class A and Class B stockholders of record as of November 26, 2019.
CAPITAL STRATEGY UPDATE
In a Form 8-K filed on September 16, 2019, the Company announced the sale of the 1,260-room Hyatt Regency Atlanta for approximately $355 million to an unrelated third party and the entry into a long-term management agreement for the property upon sale.
The Company is in the process of pursuing the sale of one of its wholly-owned hotels and will provide further details as appropriate.
BALANCE SHEET / OTHER ITEMS As of September 30, 2019, the Company reported the following:
Total debt of $1,623 million.
Pro rata share of unconsolidated hospitality venture debt of approximately $564 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
Cash and cash equivalents, including investments in highly-rated money market funds and similar investments, of $660 million, restricted cash of $140 million, and short-term investments of $63 million.
Undrawn borrowing availability of $1.5 billion under Hyatt’s revolving credit facility.2019 OUTLOOK The Company is revising the following expectations for the 2019 fiscal year:
Comparable system-wide RevPAR is expected to increase approximately 0.5%, as compared to fiscal year 2018.
Net income is expected to be approximately $431 million to $470 million. Please refer to the table on page 13 of the schedules for revised ranges impacting net income.
Other income (loss), net is expected to be approximately $98 million to $103 million, reflecting increased interest income and unrealized gains on marketable securities. The estimated $40 million negative impact related to performance guarantee expense for the four managed hotels in France is unchanged.
Adjusted EBITDA is expected to be approximately $730 million to $745 million, primarily reflecting a one point reduction in expected comparable system-wide RevPAR and the sale ofNote: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
Hyatt Regency Atlanta (as previously reported in a Form 8-K filed on September 16, 2019). Refer to the table on page 13 of the schedules for a reconciliation of Net Income to Adjusted EBITDA.
Depreciation and amortization expense is expected to be approximately $329 million to $334 million.
Interest expense is expected to be approximately $77 million.
Adjusted selling, general, and administrative expenses are expected to be approximately $335 million. This is inclusive of approximately $25 million of expenses related to non-recurring integration costs for Two Roads. Adjusted selling, general, and administrative expenses exclude approximately $33 million of stock-based compensation expense and any potential impact related to benefit programs funded through rabbi trusts.The Company is reaffirming the following information for the 2019 fiscal year:
The Company expects to grow units, on a net rooms basis, by approximately 7.25% to 7.75%, reflecting approximately 85 new hotel openings.
Capital expenditures are expected to be approximately $375 million.
As previously reported in an 8-K filed on September 16, 2019, the Company expects to return approximately $500 million to shareholders through a combination of cash dividends on its common stock and share repurchases.
The effective tax rate is expected to be approximately 25% to 27%.
No additional disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the outlook. The Company’s outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that Hyatt will achieve these results.
Saab and Vū Systems are launching a Next Generation Enhanced Flight Vision System (EFVS) solution using new passive millimetre wave (PMMW) technology, enabling pilots to see and land in low-visibility conditions at all times.
The Saab Vū EFVS enables commercial operators to maintain their schedule, while their competitors are forced to delay or cancel flights. It is the first system to provide reliable performance, unlocking access to airports in all weathers, without the need for conventional CATII/III infrastructure. The new Saab Vū EFVS provides the ability for take-off and landing in adverse weather conditions, including zero-visibility environments.
“The new system offers unmatched operational and safety advantages. Being able to take-off and land in low to zero-visibility environments radically reduces costs, increases safety and reduces environmental impact. This benefits pilots, operators and society as a whole. We are proud to be working together with Vū Systems to make this significant innovation commercially available,” says Jan Widerström, head of business unit Avionics Systems, within Saab business area IPS.
Every year, commercial aviation all over the world incurs massive financial losses as a result of delays and cancellations due to low visibility weather. In the USA alone, these additional costs amount to billions of dollars.*
To provide a solution to the impact of weather on U.S. flight operations, new FAA regulations (14 CFR 91.176) now permit landing without natural vision. The new regulations are performance based, meaning the performance of the EFVS sensor is critical to the operational value. The performance of the current EFVS sensors is limited by the atmospheric attenuation in the infrared band.
The Saab Vū EFVS solution is not affected by weather, enabling pilots to achieve Equivalent Visual Operations (EVO) and see runways at distances of two miles and more in zero-visibility conditions.
“This strategic arrangement with Saab means we can supply this revolutionary technology through a qualified supply chain to larger commercial customers, benefiting the aviation industry globally, by enabling them to take off and land when their competitors cannot,” says Stedman Stevens, CEO at Vū Systems.
Through a strategic partnership with Vū Systems, who developed the first commercially available PMMW sensor, Vū Cube, the Saab Vū EFVS exceeds the new regulatory performance goals. This unique solution comprises a new, sophisticated PMMW sensor and software that optimizes the sensor images with IR and synthetic vision, projected on the new Saab Head-Up Display (HUD). It provides pilots with the complete solution and the means necessary to land safely regardless of thick fog, snow, rain, smog, dust, smoke and clouds.
CHICAGO, Oct. 25, 2019 /PRNewswire/ — Boeing (NYSE: BA) issued the following statement regarding the release today of the final investigation report of Lion Air Flight 610 by Indonesia’s National Transportation Safety Committee (KNKT):
“On behalf of everyone at Boeing, I want to convey our heartfelt condolences to the families and loved ones of those who lost their lives in these accidents. We mourn with Lion Air, and we would like to express our deepest sympathies to the Lion Air family,” said Boeing President & CEO Dennis Muilenburg. “These tragic events have deeply affected us all and we will always remember what happened.”
“We commend Indonesia’s National Transportation Safety Committee for its extensive efforts to determine the facts of this accident, the contributing factors to its cause and recommendations aimed toward our common goal that this never happens again.”
“We are addressing the KNKT’s safety recommendations, and taking actions to enhance the safety of the 737 MAX to prevent the flight control conditions that occurred in this accident from ever happening again. Safety is an enduring value for everyone at Boeing and the safety of the flying public, our customers, and the crews aboard our airplanes is always our top priority. We value our long-standing partnership with Lion Air and we look forward to continuing to work together in the future.”
Boeing experts, working as technical advisors to the U.S. National Transportation Safety Board, have supported the KNKT over the course of the investigation. The company’s engineers have been working with the US Federal Aviation Administration (FAA) and other global regulators to make software updates and other changes, taking into account the information from the KNKT’s investigation.
Since this accident, the 737 MAX and its software are undergoing an unprecedented level of global regulatory oversight, testing and analysis. This includes hundreds of simulator sessions and test flights, regulatory analysis of thousands of documents, reviews by regulators and independent experts and extensive certification requirements.
Over the past several months Boeing has been making changes to the 737 MAX. Most significantly, Boeing has redesigned the way Angle of Attack (AoA) sensors work with a feature of the flight control software known as Maneuvering Characteristics Augmentation System (MCAS). Going forward, MCAS will compare information from both AoA sensors before activating, adding a new layer of protection.
In addition, MCAS will now only turn on if both AoA sensors agree, will only activate once in response to erroneous AOA, and will always be subject to a maximum limit that can be overridden with the control column.
These software changes will prevent the flight control conditions that occurred in this accident from ever happening again.
In addition, Boeing is updating crew manuals and pilot training, designed to ensure every pilot has all of the information they need to fly the 737 MAX safely.
Boeing continues to work with the FAA and other regulatory agencies worldwide on the certification of the software update and training program to safely return the 737 MAX to service.
Airline renews fleet with turboprop featuring cutting-edge avionics for performance in challenging conditions
Toulouse, 22 October, 2019 – Bhutanese national flag-carrier Drukair today took delivery of its brand new ATR 42-600 aircraft. The latest-generation turboprop aircraft, which will be used on the airline’s domestic and international routes, was chosen for its outstanding operational performance in challenging conditions. The airline’s ATR serves small airports in the Himalayan Mountains and links Bhutan with Kathmandu, Kolkata and Dhaka. Through the introduction of the -600 series’ latest generation Standard 3 avionics suite, Drukair will benefit from RNP AR 0.3/0.3 which further enhances airfield accessibility and operational performance. Drukair’s ATR is equipped with the ClearVision™ system, which will provide pilots with outstanding vision and situational awareness. The aircraft will feature a very comfortable 40-seat cabin with generous pitch and stowage.
Tandi Wangchuk, Chief Executive Officer of Drukair said: “We have been flying an ATR aircraft since 2011, its versatility and operational reliability have made it the ideal aircraft. When evaluating how to improve on this performance, it makes sense to upgrade to the latest-generation and we look forward to introducing these evolutions to our passengers. Particularly the modern Armonia cabin which will provide even more comfort to everyone on board.”
ATR Chief Executive Officer, Stefano Bortoli said: “There are few things more satisfying than seeing a loyal customer renew and upgrade its ATR fleet. This delivery once more shows the impact of our policy of continuous development which ensures that when we introduce new products and innovations, they offer real quality and value to our family of operators. Delivering regional connectivity in the challenging operational conditions of Bhutan and its neighbouring countries takes a special aircraft and the ATR 42‑600 is the perfect fit.”
ATR’s market estimates forecast that 1,200 30-50 seat aircraft will soon need to be replaced as older and inefficient aircraft come to the end of their lives. The ATR 42-600 is the ideal and modern solution to cater for this need and ensure that essential connectivity is maintained for local communities all over the world.
BOGOTA, Sept 12 (Reuters) – Latin American airline Avianca announced the exchange of $475.2 million in bonds on Thursday, part of a plan to change its capital structure amid ongoing financial problems and enough to receive additional financing from United Airlines.
In a statement to Colombia’s financial regulator, Avianca said it would extend the deadline for bond holders to exchange their paper until Sept. 25, in a bid to exchange a total of $550 million worth of bonds coming due next year.
Investors can exchange the bonds for others also coming due in 2020, but with a $50 bonus per $1,000.
United Airlines and Kingsland Holdings Limited, which between them control Avianca, said in a joint statement that results of the exchange thus far were sufficient for it to give the airline up to $250 million in additional financing.
“We are also pleased to confirm that this achievement is sufficient to satisfy United’s requirement for the exchange of these May 2020 bonds, regarding our previously announced offer, together with Kingsland, to loan $250 million to Avianca Holdings,” said John Gebo, senior vice president of alliances for United Airlines.
“Our loan remains contingent on certain other conditions being met by Avianca Holdings, including certain commitments and waivers made by other stakeholders,” Gebo said.
United launched a management overhaul at Avianca in May, removing top shareholder German Efromovich from controlling the cash-strapped airline.
(Reporting by Nelson Bocanegra Writing by Julia Symmes Cobb; Editing by Tom Brown)
P3 completed 34 flights in Sicily, reaching an overall 100 flight test hours. Flight envelope has been opened beyond 10,000 feet and at an airspeed of 135 knots.
In March 2019, Kopter transferred its third prototype (P3) together with a team composed of 20 flight test engineers, pilots and mechanics to Sicily to set up an additional flight test base in Pozzallo.
Pozzallo provides the perfect operational conditions to conduct the SH09 intensive flight test campaign needed in the frame of certification. It offers very limited restrictions and favorable weather conditions throughout the year, while giving the opportunity to experience a demanding climate with hot temperatures, high humidity, strong winds and a salty atmosphere.
Since its arrival and over a period of two months, the flight test crew performed 34 flights with P3, allowing the aircraft to reach around 100 flight test hours. In this timeframe, the first major inspection has been carried out successfully.
The major outcome is the opening of the SH09 flight envelope up to 10,000 feet altitude and up to a speed of 135 knots. During all flights, P3 performed as expected and generated a large volume of valuable data that is being used to finalize the design of the serial production SH09.
The next phase of the flight test campaign, after implementing some aerodynamic refinements further improving P3 handling qualities and the retrofit of the main gear box housing, will see P3 going higher, faster and further. It will allow gathering the remaining data needed to finalize the configuration of Pre-Series aircrafts n°4 and n°5 (PS4 & PS5), which will contribute to the certification flights next year.
2020 remains the target for EASA certification. Kopter management and team are fully committed to deliver the SH09 with the highest levels of safety, performance, flight qualities and competitiveness.
ROME
(Reuters) – Delta Air Lines and easyJet have set strict conditions for
investing in Alitalia that could jeopardise a government-led plan to
rescue the troubled Italian airline, a source close to the matter said.
Alitalia was put under special administration in 2017 after workers rejected the latest in a long line of rescue plans.
Italy’s
populist government, which has made the re-launch of the flagship
carrier one of its priorities, is sponsoring a plan that would see
state-owned railway Ferrovie inject fresh funds and revamp the carrier
together with industrial partners.
Delta
and easyJet, which have expressed interest in Alitalia, are in talks
with Ferrovie, but the three investors do not see eye to eye on the
structure of the deal.
Without
an industrial partner fully on board, Alitalia could soon find itself
in trouble since neither Ferrovie nor the state have the skills to run
the carrier, the source said.
EasyJet
has said several times it is interested in Alitalia’s short-haul
operations and positions at primary airports, adding the alliance should
be commercially viable.
The
British low-cost carrier would be open to taking a stake of 15 percent
in the Italian airline but only if it wins control of certain Alitalia
assets, the source said.
That
condition has irritated the three special commissioners in charge of
the airline, who fear it could lead to a break-up of the company. The
administrators have the power to decide on the offers.
At
the same time Delta is also planning to take a 15 percent stake,
spending around 100 million euros in the proposed 900 million euro
(773.6 million pounds) rescue plan, but does not want to inject more
than that, the source said.
A
participation of 30 percent or less by the industrial partners,
compared with a stake of around 40 percent Ferrovie was counting on,
would force the government to find additional investors, probably among
state-controlled companies, a second source said.
Ferrovie
is expected to take a stake of between 30 and 49 percent in the new
carrier, the second source said, making a full involvement of Delta and
easyJet crucial.
According
to Italian newspaper Il Messaggero, Ferrovie CEO Gianfranco Battisti
will fly to Atlanta in the coming days to try to convince Delta’s CEO Ed
Bastian to pump more money into the rescue plan.
Ferrovie, easyJet declined to comment on the issue, while Delta was not immediately available for comment.
Ferrovie
is racing against the clock to meet a March 31 deadline set by the
Italian government to present a rescue plan for Alitalia.
Should
that deadline be missed, it would jeopardise the repayment of 900
million euro state loan to the airline, which must take place by the end
of June.
(By Giselda Vagnoni. Additional reporting by Francesca Landini in Milan, Alistair Smout in London, Tracy Rucinski in Chicago, Writing by Francesca Landini; Editing by Keith Weir)
