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Left-Wing Brazil Political Party Sues to Block Boeing-Embraer Deal

RIO DE JANEIRO (Reuters) – A left-wing political party on Wednesday filed a lawsuit to block the sale of 80% of Brazilian planemaker Embraer SA’s <ERJ> commercial jet division to Boeing Co <BA> for $4.2 billion (3.3 billion pounds), arguing it will harm Brazil’s sovereignty.

The deal, which would position Boeing to compete more directly with Airbus SE <EADSY> in the market for mid-sized passenger planes, has faced significant left-wing opposition largely because Embraer is seen as a strategic company for Brazil’s national security.

So far, a handful of lower court decisions temporarily blocking the deal have been overturned by appeals court judges. The government has authorized the deal and Embraer’s shareholders are all for it.

But the latest lawsuit, filed by Brazil’s Democratic Labor Party (PDT), underscores that there is still a political risk that could potentially unravel the agreements reached so far between Boeing and Embraer. The PDT’s leader, Ciro Gomes, has staunchly opposed the sale of Embraer’s commercial jet division to Boeing.

Embraer declined to comment on the lawsuit.

The proposed deal with Boeing was first announced in July 2018.

Boeing and Embraer are waiting for antitrust approval to finalise the deal, including intense scrutiny from European regulators. They expect that to happen in early 2020.

(Reporting by Rodrigo Viga Gaier in Rio de Janeiro; Editing by Matthew Lewis)

Aeroflot Scales Back Superjet Flights After Fatal Crash

  • Sukhoi plane crash-landed on May 5, killing 41
  • Investigation into crash is ongoing
  • Aeroflot has flown at least 129 fewer Sukhoi flights since the crash
  • Petition to ground plane has over 200,000 signatures

MOSCOW, June 3 (Reuters) – Russian airline Aeroflot has scaled back the number of Sukhoi Superjet 100 flights it operates after one of its planes made a crash-landing last month, killing 41 people, according to data provided by a flight tracking website.

Flightradar24 data shows Aeroflot has also at times substituted Airbus or Boeing planes for the Superjet, the first new passenger jet developed in Russia since the Soviet Union collapsed.

Fallout from the crash risks undermining the aircraft’s reputation at a time when Russia is promoting another domestically made passenger plane, the M-21, as a rival to Boeing and Airbus.

Aeroflot and Sukhoi Civil Aircraft, the Superjet’s maker, declined to comment on the data or on the use of other aircraft instead of the Russian plane. Both the airline, Russia’s national flag carrier, and the manufacturer have said in the past that the aircraft meets all relevant international safety standards and will continue to be made and used.

The cause of the May 5 crash, the second deadly accident involving the Superjet in nine years of service, has not yet been established. Russian authorities said afterwards there was no reason to ground the Superjet.

Yet Aeroflot flew 129 – or about 7% – fewer Superjet flights in the two weeks after the crash than in the previous fortnight, the Flightradar24 data showed.

In one case, frightened passengers on a Sukhoi refused to continue their journey after an aborted take-off, forcing Aeroflot to lay on an Airbus instead, an airline industry source with direct knowledge of the matter said, a version of events corroborated separately by Russia’s RIA news agency.

Aeroflot after the crash began paying extra attention to safety checks and to scale back the Superjet’s usage to try to reassure passengers, the same source said.

More than 213,000 people have signed a petition demanding the plane be grounded since May 5.

‘WHO NEEDS IT?’

Some Russian and foreign operators have complained about the difficulty of servicing the Superjet due to delays in sourcing spare parts. Irish airline CityJet and Belgian carrier Brussels Airlines turned their back on the Superjet citing those reasons.

State officials and airline executives say the airliner spends about half its time on the ground undergoing maintenance, and can fly only about a third as much as foreign-made rivals in a 24-hour period when in use.

They blame a lack of readily available spare parts and the complexity of servicing its engines.

Vitaly Savelyev, Aeroflot’s CEO, told Russian news agency TASS in 2017 that his company, which is majority-owned by the Russian state, might not have bought the Superjet at all if it was a private company.

Aeroflot, which has promised to buy a further 100 Superjets on top of the 49 it has already, is in a difficult situation because of the project’s political importance for Russia.

There are signs however that even some allies of President Vladimir Putin are growing weary of the aircraft.

Valentina Matviyenko, speaker of the upper house of parliament, in November publicly rebuked the transport minister over the large sums she said had been pumped into the Superjet in vain.

Russian newspaper Novaya Gazeta estimated in 2012 that $7 billion had been spent on the project, while Sukhoi has put the figure at $2 billion.

“Who needs it? … It’s not good for anything,” said Matviyenko. “Aeroflot says we bought them and they sit on the ground. Nobody abroad is buying them … What have we achieved?”

Mexican low-cost carrier Interjet, citing maintenance and parts problems, told Mexican daily newspaper El Universal just over a week after the crash that it was trying to sell its 20 Superjets and favoured Airbus 320s instead.

Regional carrier Yamal Airlines, Russia’s second biggest Superjet operator after Aeroflot, said a day after the crash that it was cancelling its planned purchase of 10 of the planes. It cited high servicing costs.

And RusLine, another regional carrier, told Kommersant it was scrapping provisional plans to obtain 18 Superjets as part of a leasing deal. The paper cited RusLine’s owner Nikolai Ulan as saying he thought the plane was safe but that passengers would be afraid to fly on it, making it harder for him to break even. RusLine did not respond to a request for comment.

PASSENGER FEARS

The Superjet, which entered service in 2011, is predominantly operated inside Russia by regional airlines, corporations and government entities. Sukhoi had hoped to sell hundreds, but slack demand means only 138 of the planes are in use.

On the Moscow-Murmansk route, the one taken by the plane involved in the fatal crash, Aeroflot replaced the Superjet with either Boeing 737s or Airbus A320s in the five days after the accident, a practice it partially continued the week after.

This was done in direct response to the crash in order to try to calm passenger fears, the same airline source said.

There have been a spate of safety-related incidents and cancellations since May 5.

In one case, a Superjet flight from Moscow to Riga was held up after passengers noticed a burning smell and demanded a new plane. Engineers found nothing wrong, one of the passengers told state TV.

In another, on May 18, passengers on a Moscow-bound flight from the city of Ulyanovsk took fright after their Superjet aborted take-off because of a warning about the hydraulic system.

“Passengers were told that the flight was being delayed for technical reasons. Of course, after the catastrophe, they started to panic and refused to fly on the same plane. The psychological factor came into play,” the airline source with direct knowledge of the situation told Reuters.

Aeroflot flew the passengers to Moscow the next day on an Airbus A320 and engineers found nothing wrong with the Superjet involved in that incident either, the transport prosecutor’s office said.

Yevgeny Dietrich, Russia’s transport minister, said the situation was not “radically changed” from the pre-crash period.

“In fact, delays and cancellations occurred previously. You simply wrote about them less,” Dietrich told reporters.

His statement and the crash have highlighted the fact that many Superjets do not fly very often.

Flightradar24 data shows that 37 of 127 Superjets in commercial use globally did not make a single flight from April 22 until May 19, and that 45 did not make more than 10 flights during that period.

That tallies with expert reports, which have said foreign-made planes in Russia average nine hours flying time in every 24-hour period compared to between just three and four hours for the Superjet.

The same industry source said only about 50% of Aeroflot’s Superjets flew regularly and that Superjet pilots, who are paid for completed flights, had their salaries topped up to compensate for time spent on the ground.

(Writing by Andrew Osborn and Gleb Stolyarov; Editing by Giles Elgood)

Avianca Brazil Gives Up 18 Planes, Cancels 1,045 Flights

RIO DE JANEIRO (AP) — Avianca Brasil canceled more than 1,045 domestic flights this week because it has to return 18 aircraft to leasing agencies.

Brazil’s National Aviation Agency said the planes needed to be returned Monday to avoid affecting Holy Week holiday passengers. Customers can either get refunds for canceled flights or rebook through partner airlines.

Avianca Brasil declined to say how many planes it has left. But the G1 news portal reports that the airline has just seven planes still in its fleet.

On April 1, the airline canceled several international routes from Sao Paulo to New York, Miami and Santiago, Chile.

Avianca Brasil filed for bankruptcy in December after failing to pay leases on its aircraft. The airline, formerly known as Ocean Air, has licensed the name Avianca since 2010 from Colombian carrier Avianca Holdings SA. They are separate companies with the same owners: brothers German and Jose Efromovich. The latter is being investigated for allegedly failing to pay airport fees in Salvador airport in northeastern Brazil.

A company representative from Avianca’s headquarters in Colombia stressed that the Brazilian company is independent from Avianca Holdings group, both operationally and financially. The company said in a statement that flights operated by Avianca Holdings SA from hubs in Bogota and Lima, Peru, to destinations in Brazil will not be affected by the Avianca Brasil cancellations.

Airbus A320 Neo of Avianca at GRU Airport – Guarulhos International Airport, Sao Paulo, Brazil – 2017

Bombardier Celebrates 1st CRJ900 Delivery To Uganda Airlines

Bombardier Commercial Aircraft today celebrated the delivery of the first two of four CRJ900 aircraft ordered by Uganda National Airlines Company in July 2018. The new airline has selected Bombardier and the CRJ900 regional jets fitted with the ATMOSPHÈRE cabin for its upcoming debut, making it the first operator in Africa with this enhanced cabin experience.

The CRJ900 delivery ceremony held today at Bombardier’s Mirabel, Québec facility, was attended by executives of both Uganda Airlines and Bombardier Commercial Aircraft as well as several shop floor employees who build the CRJ900 aircraft.

“We are thrilled to commence our operations with the world’s leading regional jet, and we look forward to providing the most modern passenger experience in regional aviation to the people of Uganda and across Africa,” said Ephraim Bagenda, CEO, Uganda National Airlines.”

“We congratulate Uganda Airlines for taking delivery of their very first CRJ900 jetliner fitted with the ATMOSPHÈRE cabin in a dual-class configuration with 76 seats, including 12 first class seats. The CRJ Series is recognized for its superior economics and efficiency and I am confident that it will be the stepping stone for the development of Uganda’s regional air travel”, said Fred Cromer, President, Bombardier Commercial Aircraft.

About Bombardier

With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Story and images from http://www.bombardier.com

Bombardier Signs Firm Purchase Agreement for 6 Q400’s

Toronto, March 29, 2019 – Bombardier Commercial Aircraft announced today that a customer, who has requested to remain unidentified at this time, has signed an order to acquire six new Q400 aircraft.

Based on the list price of the Q400 aircraft, the firm order is valued at approximately US$ 202 million.

“The Q400 aircraft offers the perfect balance of passenger comfort and operating economics while maintaining its unmatched range and speed advantage versus other turboprops,” said Fred Cromer, President, Bombardier Commercial Aircraft. “The demand for turboprop aircraft worldwide is tremendous and the Q Series aircraft are ideally positioned to meet the needs of regional airlines as they offer a unique ability to serve diverse and challenging environments. The Q400 offers the lowest seat costs amongst turboprops, with an enhanced passenger experience and a proven 99.5 per cent reliability.”

About Bombardier

With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bamboo Airways Signs Firm Deal For 50 Airbus A321neo’s

HANOI (Reuters) – Vietnamese carrier Bamboo Airways has signed a firm deal to buy 50 Airbus A321Neo planes, its chairman Trinh Van Quyet said on Thursday.

The first of the planes will be delivered in 2022, Quyet told Reuters.

He said Bamboo Airways will conduct its first international flights late next month, to Japan, Singapore and South Korea.

(Reporting by Khanh Vu; editing by David Evans)


FILE PHOTO: An Airbus A321 aircraft of Bamboo Airways taxis at Noi Bai airport in Hanoi, Vietnam January 16, 2019. REUTERS/Kham

Norwegian Air to Lease Planes, Turn Profitable in 2019

OSLO (Reuters) – Norwegian Air will lease planes and postpone the sale of older models in its fleet following the grounding of Boeing 737 MAX aircraft, the airline said on Monday.

The budget carrier will also use some of its bigger Boeing 787 Dreamliners to offset the effects of the grounding of its 18 MAX jets – about 11 percent of its fleet.

The 737 MAX was grounded worldwide this month following a deadly crash in Ethiopia.

“In addition to continuing combining flights and reallocating aircraft, the company has decided to delay potential sales of six Boeing 737-800 aircraft and use available 787 Dreamliner capacity on high-volume routes, which will add flexibility,” Norwegian said in a statement.

“The company is further preparing to wetlease aircraft to fill the remaining capacity gap,” it added, referring to the industry practice of renting fully-staffed aircraft for a period of time.

Norwegian said earlier this month it would seek compensation from Boeing for costs resulting from the grounding of the global MAX fleet.

“The company has a good dialogue with Boeing and is confident of reaching a constructive agreement,” Norwegian said, without elaborating.

Norwegian Air CEO repeats plan to turn profitable in 2019

Norwegian Air aims to turn profitable this year, its chief executive said on Monday, reiterating plans to turn around the situation at the loss-making budget airline.

“We aim to become profitable in 2019,” Bjoern Kjos told Norwegian public broadcaster NRK. “We’re managing well as an independent company.”

(Reporting by Terje Solsvik)

SpiceJet in Talks to Lease Some of Jet Airways Airplanes

NEW DELHI/BENGALURU (Reuters) – India’s SpiceJet Ltd could benefit from cash-strapped Jet Airways being forced to ground planes, and the low-cost carrier is in talks with lessors to lease some of those aircraft, a person with direct knowledge of the matter told Reuters.

Shares of SpiceJet rose as much as 7.2 percent on Wednesday in their biggest percentage gain since Dec. 18 as investors bet the airline could take advantage of Jet Airways’ woes.

SpiceJet last week was forced to ground its 12 Boeing Co 737 MAX 8 planes by India’s aviation watchdog, following safety concerns after the Ethiopian Airlines plane crash that killed 157 people.

SpiceJet and Jet Airways are the only carriers in India that operate this type of aircraft and have a total of about 400 on order. The airlines also operate the previous model, the 737-800 among other Boeing planes.

The 737-800 makes up the majority of the Jet Airways fleet, and the airline is now operating only 41 aircraft, the Directorate General of Civil Aviation (DGCA) said on Tuesday.

That means around two-thirds of its fleet is grounded for non-payment to lessors, maintenance or other reasons.

“Lessors are panicking as they haven’t been paid and if Jet goes for insolvency, their planes will be stuck in India, so many of them are chasing SpiceJet,” said the person quoted earlier.

The person said SpiceJet needs at least twelve 737s to cover the grounded MAX planes and it is negotiating for more. Jet Airways pilots are also queuing up to join the budget airline.

Jet Airways’ lessors have offered 50 aircraft to SpiceJet, according to a report by news wire IANS.

SpiceJet and Jet Airways did not immediately respond to a request for comment.

Jet Airways shares dropped about 7 percent on Wednesday as its financial crisis deepened, with the Indian government calling for an emergency meeting and pilots threatening to go on strike over unpaid salaries.

The government has asked state-run banks to rescue Jet Airways without pushing it into bankruptcy, two people within the administration have told Reuters, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election.

The 25-year-old airline has defaulted on loans after racking up over $1 billion in debt, and owes money to banks, suppliers, pilots and lessors – some of whom have started terminating their lease deals with the carrier.

This has forced Jet Airways to cancel hundreds of flights, leaving passengers stranded and angry. The number of Jet Airways flights has fallen by 80 percent from a year ago, according to the DGCA.

(By Aditi Shah and Tanvi Mehta, Additional reporting by Arnab Paul in Bengaluru, Editing by Sherry Jacob-Phillips and Shreejay Sinha)

FILE PHOTO: A Jet Airways passenger aircraft takes off from the airport in Ahmedabad, August 12, 2013. REUTERS/Amit Dave/File Photo

Avianca Brasil to Sell Some Assets to Azul

SAO PAULO, March 11 (Reuters) – Brazilian airline Azul SA said on Monday it intends to pay $105 million for certain assets held by Avianca Brasil, which was headed to court to face aircraft lessors as it seeks to keep operating planes despite mounting late payments.

Azul said the non-binding purchase agreement would involve 70 pairs of slots, which grant airlines the rights to operate regular flights between airports.

Azul already operates two Airbus A320 planes that were previously used by Avianca Brasil until they were repossessed in December due to outstanding payments. Under the agreement announced on Monday, Azul said it could end up operating up to 30 Airbus planes currently in use by its rival.

Azul did not disclose how it would be able to take over the leases and the airline did not immediately respond to a request for comment.

Avianca Brasil filed for bankruptcy protection in December in an attempt to stall aircraft lessors who had sued to repossess its fleet, two months after the carrier started missing payments on many of its aircraft.

The Avianca Brasil hearing scheduled for Monday in an appeals court will deal with a request from aircraft lessors, including Aircastle, that planes be repossessed as soon as possible, after a bankruptcy judge extended the airline’s control over the aircraft until at least April.

Since filing for bankruptcy, Avianca Brasil has secured a $75 million loan from hedge fund Elliot Management.

(Reporting by Marcelo Rochabrun and Ana Mano Editing by Chizu Nomiyama and Bill Trott)

Azul Linhas Aereas Embraer 195 at Curitiba Airport, Brazil

Bombardier Global 7500 Completes Longest Business Jet Flight in History

Global 7500 jet’s extraordinary 8,152 nm flight is the longest mission ever flown by a purpose-built business jet
Flight also sets record for highest speed over longest distance in business aviation history, connecting Singapore to Tucson, AZ*
Aircraft landed with fuel reserves well above NBAA requirements; 4,300 lb of remaining fuel represents nearly 1,5 hours of additional flight
Aircraft provides the industry’s largest cabin and best cabin experience, perfectly suited for trans-oceanic journeys and an exceptionally smooth ride

Bombardier is proud to announce that its Global 7500 aircraft, has once again demonstrated its ability to go the distance by completing the longest range business jet flight in history**, successfully completing an 8,152-nautical-mile flight non-stop, pushing the boundaries of business travel.

The award-winning business jet departed from Singapore Changi Airport at 7:12 a.m. local time and arrived at Tucson International Airport at 8:19 a.m. local time, completing the long-range speed record flight for the city-pair.

“The Global 7500 aircraft was built to break all the records,” said David Coleal, President, Bombardier Business Aircraft. “It achieved the industry’s longest mission ever in business aviation after only two months in service. We’ve demonstrated its unequaled long-range and high speed capabilities, but also its ability to break records confidently with healthy fuel reserves remaining, once again, confirming its unsurpassed performance to customers.”

Since its entry-into-service, the Global 7500 jet has emphatically proven itself to be the highest-performing aircraft in the industry and this record showcases the real-world capabilities of this impressive aircraft. With a top speed of Mach 0.925, the aircraft has unquestionably shown its ability to fly even further than any other business jet with its advertised range of 7,700 nautical miles. The achievement of a flight that reaches 8,152 nautical miles clearly demonstrates that the aircraft is the only business jet with the high-performance capabilities required for long flights. Providing access to these demanding, long-range routes is an invaluable resource for customers.

Over the last two months, the Global 7500 jet has demonstrated exceptional performance and reliability, this first aircraft has completed more than 170 hours of flight around the world.

The Global 7500 aircraft offers spaciousness that is unique among business jets, with its award-winning interior featuring a full-size kitchen and four true living spaces. The Global 7500 aircraft also debuts Bombardier’s patented Nuage seat, which was meticulously designed for maximum comfort and will be exclusive to the new Global family of aircraft.

About Bombardier

With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion.

Story and images from http://www.bombardier.com

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