Tag: public (Page 4 of 6)

Emirates Plans to Cut About 30,000 Jobs Amid Virus Outbreak

May 18, 2020 / WIL BALDWIN

(Reuters) – Emirates Group is planning to cut about 30,000 jobs to reduce costs amid the coronavirus outbreak, which will bring down its number of employees by about 30% from more than 105,000 at the end of March.

The company is also considering speeding up the planned retirement of its A380 fleet, the report added, citing people familiar with the matter.

An Emirates spokeswoman said that no public announcement has been made yet by the company regarding “redundancies at the airline”, but that the company is conducting a review of “costs and resourcing against business projections”.

“Any such decision will be communicated in an appropriate fashion. Like any responsible business would do, our executive team has directed all departments to conduct a thorough review of costs and resourcing against business projections,” the spokeswoman said.

Emirates, one of the world’s biggest long-haul airlines, said earlier this month that it will raise debt to help itself through the coronavirus pandemic, and may have to take tougher measures as it faces the most difficult months in its history.

The state-owned airline, which suspended regular passenger flights in March due to the virus outbreak that has shattered global travel demand, had said that a recovery in travel was at least 18 months away.

It reported a 21% rise in profit for its financial year ending March 31, but said the pandemic had hit its fourth-quarter performance.

It said it would tap banks to raise debt in its first quarter to lessen the impact of the virus on cash flows.

(Reporting by Kanishka Singh in Bengaluru and Alexander Cornwell in Dubai; Editing by Catherine Evans and Jan Harvey)

FILE PHOTO: An Emirates Airbus A380 airliner lands at Nice international airport, France

Korean Air to Issue $817 Million in New Shares as Virus Strains Industry

May 14, 2020 / WIL BALDWIN

SEOUL (Reuters) – South Korea’s largest airline, Korean Air, plans to sell around 1 trillion won ($816.55 million) in new shares in its biggest rights issue in 20 years to raise funds amid mounting strains in the industry due to the pandemic.

Korean Air is the latest carrier to raise funds as travel restrictions imposed by governments around the world have led to airlines grounding their fleets worldwide.

Korean Air separately plans to receive 1.2 trillion won in support from South Korean state-owned banks.

About 79 million newly issued shares, to be listed on July 29, will be first bought by the carrier’s shareholders, including holding company Hanjin Kal which has a 30% stake in the carrier, followed by general public, the company said in a statement.

“Korean Air will continue to carry out self-rescue measures to overcome the dismal business environment due to COVID-19,” the company said.

Korean Air had 70% or more of its employees working in South Korea take a six-month leave of absence in April. Woo Kee-hong, the airline’s president, warned in March that the coronavirus outbreak could threaten its survival if the situation becomes prolonged.

Korean Air also picked last month a preferred bidder to buy its real estate and non-core assets, which some analysts value at about 400-500 billion won.

Korean Air had a debt-to-equity ratio of about 870% as of end-2019. It is expected to announce January-March quarter earnings later this week.

A spokeswoman for Korean Air said it was operating just 10% of its previously planned international schedule, and 60% of its domestic schedule.

The airline said it expects its June international schedule to rise to 20% of its previous plan, as it announced the addition of more international passenger flights to prepare for increased travel demand once COVID-19 restrictions are relaxed.

United Airlines Holdings Inc said earlier this month it plans to raise $2.25 billion through a bond offering, after announcing a public offering to raise more than $1 billion in April.

In March, Singapore Airlines said it would issue S$5.3 billion ($3.70 billion) in new equity and up to S$9.7 billion($6.78 billion) via mandatory convertible bonds in a rights issue backed by state investor Temasek Holdings.

($1 = 1,224.6700 won)

(Reporting by Joyce Lee; Editing by Simon Cameron-Moore and Louise Heavens)

Korean Air’s passenger planes are parked following outbreak of COVID-19, at Incheon International Airport

Volaris Announces Temporary Capacity Reduction

April 2, 2020 / WIL BALDWIN

PRNewswire/ — Volaris (NYSE: VLRS), the ultra-low-cost airline serving Mexico, the United States and Central America, announces that pursuant to a decree published in the Official Gazette of the Federation, the Government of the United Mexican States, acting through the General Health Council (Consejo de Salubridad General (“GHC”)) declared a health emergency due to force majeure, as a result of the disease epidemic caused by the virus SARS-CoV-2 (COVID-19), known as Coronavirus, which will be in effect until April 30, 2002 (the “Declaration of Emergency”)

The Declaration of Emergency and the health security measures announced by the GHC, such as the suspension of non-essential activities in the public, private and social sector, as well as the call to the population to comply with stay at home, will impact the demand for passenger air transportation whilst the Declaration of Emergency is in effect.

As a result, from the date hereof, Volaris will make an additional capacity reduction to that which was advised on March 24, 2020. Capacity measured by available seat miles (ASMs) for the month of April, 2020 will reduce to approximately 80% of total operation versus the schedule originally published.

Volaris will continue to provide relevant market updates should further capacity, governmental travel restrictions or other liquidity preserving measures need to be implemented.

Boeing Statement on Passage of CARES Act

March 26, 2020 / WIL BALDWIN

We thank the Administration, especially the President and Secretary Mnuchin, as well as the Senate for working together to take swift bipartisan action to support the American economy, including the 2.5 million jobs and 17,000 suppliers that Boeing, the aerospace industry and the U.S. rely on to maintain our world leadership in commercial, defense and services. The bill’s access to public and private liquidity, including loans and loan guarantees, is critical for airlines, airports, suppliers, and manufacturers to bridge to recovery.

Boeing’s top priority is to protect our workforce and support our extensive supply chain, and the CARES Act will help provide adequate measures to help address the pandemic. We have also taken a number of measures for affordability and liquidity as we navigate the challenges our industry currently faces, including forgoing pay for our CEO and board chairman, suspending our dividend until further notice, and extending our existing pause of any share repurchasing until further notice.

We appreciate the House taking swift action to support the American people.

Airbus A400M Supports COVID-19 Crisis Relief Efforts in Spain

March 25, 2020 / WIL BALDWIN

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 23^rd 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.

Amtrak Takes Active Measures to Maintain Safe Environment

March 24, 2020 / WIL BALDWIN

The safety of Amtrak’s customers and employees is our top priority. We continue to monitor the coronavirus situation closely and we are taking action based on guidance from public health experts; that includes restoring service to trains and routes once demand returns. In order to maintain a safe environment and address customer concerns and potential business impact, we are taking the following measures:

Before You Travel

If you are traveling with Amtrak:

Providing an essential transportation service: We are waiving change fees on all existing or new reservations made before April 30, 2020. Simply log in to your account or go to Modify Trip on Amtrak.com, or find your reservation from your account on the home screen in the Amtrak app. A fare difference may apply to your new itinerary. If you want to cancel your reservation with no fee, you must call 800-USA-RAIL and speak with an agent (not available via Amtrak.com or the app).
Take care of yourself and keep others safe: If you are feeling ill, please stay home until feeling better.

Maintaining a Safe Environment

To reduce risk, we are:

Enhancing cleaning protocols: We have increased the frequency of cleaning services on our trains and at our stations.
Increasing disinfectant supplies: We have increased the quantity of sanitizers and disinfectant wipes available for customers and employees on our trains and stations.
Reinforcing good hygiene practices: We are regularly sharing best practices with employees and customers on ways to protect against communicable diseases.

We continue to recommend that everyone follow CDC guidelines around social distancing. If you do need to travel with us, know that we are taking extra steps to keep our stations and trains clean, keep you safe, and remain an essential part of transportation in America. See what we are doing here.

Service Impacts

While Amtrak continues to operate, we have temporarily suspended the following services due to reduced demand. See details on service impacts here.

What You Can Do

To protect against all communicable diseases:

Wash your hands: Wash hands frequently with soap and water – and for 20 seconds. If you can’t wash your hands, use hand sanitizer.
Cover your mouth: When sneezing or coughing, use tissues and promptly dispose of them or cover your mouth with your sleeve or elbow.

While we are running reduced service across the country, it is still essential to exercise caution around railroad tracks and crossings. #SeeTracksThinkTrain

Airbus & Texas DPS Explain Large-Scale Search and Rescue Operations

February 24, 2020 / WIL BALDWIN

Article by Belén Morant, Media: Airbus Helicopters; Jonny Carroll; DTX Media

Tim Ochsner, Chief Pilot of the Texas Department of Public Safety (DPS), explains the key to the success of the SAREX (search and rescue exercise)

When it comes to offering an adequate, effective and rapid response to natural disasters there’s no room for improvisation, particularly when a number of different agencies are involved. Tim Ochsner, Chief Pilot of the Texas Department of Public Safety (DPS), explains the key to the success of the SAREX (search and rescue exercise) conducted by more than 20 different agencies since 2015, which has now established itself as the benchmark for rescue training in the US.

How did the need arise to organise rescue training on such a large scale as SAREX?

In 2011, the state of Texas had huge problems with wildfires, and the following years we had two major floods. All the agencies equipped with aerial capability for these kinds of situations were involved: the Army with their Lakotas, our local EMS agencies, the Austin Police Department with their H125 and San Antonio Police Department with an H125 as well…

We all quickly formed a team and worked together out of necessity due to the flooding. We didn’t have time to set much up – we just did it.

After those events, we thought we needed to come up with a better plan for training, establish a communication plan and standard operating procedures. We had to establish a cooperation framework that was independent to the parties we tend to work with, because at the end of the day these things can change. That’s how the SAREX exercise came about.

Click the link for the full story, more pictures, and a video! https://www.airbus.com/newsroom/stories/sarex.html

Record $4 Billion Airbus Fine Draws Line Under ‘Pervasive’ Bribery

January 31, 2020 / WIL BALDWIN

FILE PHOTO: FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse

PARIS/LONDON/WASHINGTON (Reuters) – Airbus <EADSY> bribed public officials and hid the payments as part of a pattern of worldwide corruption, prosecutors said on Friday as the European planemaker agreed a record $4 billion settlement with France, Britain and the United States.

The disclosures, made public after a nearly four-year investigation spanning sales to more than a dozen overseas markets, came as courts on both sides of the Atlantic formally approved settlements that lift a legal cloud that has hung over Europe’s largest aerospace group for years.

“It was a pervasive and pernicious bribery scheme in various divisions of Airbus SE that went on for a number of years,” U.S. District Judge Thomas Hogan said.

The deal, effectively a corporate plea bargain, means Airbus has avoided criminal prosecution that would have risked it being barred from public contracts in the United States and European Union – a massive blow for a major defence and space supplier.

Prosecutors said individuals could still face criminal charges, however.

Airbus, whose shares closed down 1%, has been investigated by French and British authorities for alleged corruption over jet sales dating back more than a decade. It has also faced U.S. inquiries over suspected violations of U.S. export controls.

“In reaching this agreement today, we are helping Airbus to turn the page definitively” on corrupt past practices, French prosecutor Jean-Francois Bohnert said.

France’s financial prosecutor said the company had also agreed to three years “light compliance monitoring” by the country’s anti-corruption agency.

The U.S. Department of Justice said the deal was the largest ever foreign bribery settlement.

CODE NAME ‘VAN GOGH’

In a packed hearing at London’s Royal Courts of Justice, an Airbus lawyer said the settlements “draw a clear line under the investigation and under the grave historic practices”.

Outlining detailed findings, the UK’s Serious Fraud Office (SFO) said Airbus had hired the wife of a Sri Lankan Airlines executive as its intermediary and misled Britain’s UKEF export credit agency over her name and gender, while paying $2 million to her company. The airline could not be reached for comment.

Click the link below to read the full story!

https://finance.yahoo.com/news/airbus-pay-4-billion-settle-152542295.html

What Air France-KLM’s Bid For Malaysian Airlines Stake Could Mean For Delta

January 21, 2020 / WIL BALDWIN

Delta Air Lines, Inc. (NYSE: DAL) traded down 1.8% Tuesday shortly after its global affiliates announced a bid for an embattled airline.

In an early round of bidding against other international airlines, Air France-KLM proposed to buy a 49% stake in Malaysia Airlines. Its pitch outlined plans for a maintenance hub in the Southeast Asian nation.

The circumstances of the bid are not particularly positive. Malaysia Airlines has struggled to revive booking rates since two disasters in 2014 tanked its public trust. Flight MH370 mysteriously disappeared over the Indian Ocean, and flight MH17 was shot down over Ukraine. The Malaysian government has since sought a strategic partner to restore the airline’s image.

Why It’s Important

With a stake in Malaysian Airlines, Air France-KLM could improve the entity’s public trust issues — or it could be hampered by them. Either way, an affiliation may create risk for Delta.

Click the link for the full story!

https://finance.yahoo.com/news/air-france-klms-bid-malaysian-153046986.html

Boeing Statement on 737 MAX Simulator Training

January 7, 2020 / WIL BALDWIN

Boeing is recommending 737 MAX simulator training in addition to computer based training for all MAX pilots prior to return to service of the 737 MAX. This recommendation takes into account our unstinting commitment to the safe return of service as well as changes to the airplane and test results. Final determination will be established by the regulators.

“Safety is Boeing’s top priority,” said interim Boeing CEO Greg Smith. “Public, customer and stakeholder confidence in the 737 MAX is critically important to us and with that focus Boeing has decided to recommend MAX simulator training combined with computer-based training for all pilots prior to returning the MAX safely to service.”

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