(Reuters) – United Airlines Holdings Inc <UAL> said on Tuesday it expects a non-cash impairment charge of $90 million in the fourth quarter related to its Hong Kong routes, following anti-government protests in the city.
The Hong Kong protests escalated in June over a now-withdrawn extradition bill, but have since developed into a broader movement.
“Due to a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue, the company determined that the value of its Hong Kong routes had been fully impaired,” the U.S. carrier said.
Several airlines including India’s SpiceJet Ltd <SPJT>, Malaysia’s AirAsia Group Bhd <AIABF>, South Korea’s JejuAir Co Ltd <089590> reduced the number of flights to the city in the fourth quarter as the protests grew increasingly violent, disrupting daily life.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)
Alstom congratulates Transport for New South Wales (TfNSW), on the opening of the CBD and South East Light Rail project and the start of revenue service, returning Light Rail back down Sydney’s George St for the first time in more than 60 years.
Alstom, as part of the ALTRAC Light Rail consortium[1], has been responsible for the integrated light rail system that included the design, delivery and commissioning of 60 Citadis X05 Light Rail Vehicles (LRV), power supply equipment including APS – the wire-free ground-based power supply (over two kilometres), the energy recovery substations – HESOP, signalling, communications, depot equipment and 19 years of maintenance.
The new 12km network has been delivered under a turnkey PPP model that will provide the commuters of Sydney with frequent, reliable, high capacity services running from Circular Quay in the city’s CBD to Central Station, then south east to Randwick. Each LRV has a capacity of 450 passengers – the equivalent of nine standard buses and will move up to 13,500 commuters per hour (6,750 in each direction) during peak times once fully operational. Normal tram services will operate seven days a week between 5am and 1am.
As part of the contract, the consortium has also taken over the operations and maintenance of the existing Inner West Light rail (IWLR) that connects Sydney’s inner west with the Pyrmont peninsula, Darling Harbour and the southern CBD. Alstom is also responsible for the maintenance of the existing system which includes 12 CAF Light Rail Vehicles.
“Alstom is extremely proud to be a part of this iconic project” said Mark Coxon, Managing Director for Alstom in Australia & New Zealand, “This new Light Rail system will transform Sydney and provide a step change in the city’s public transport capability and reliability while protecting the aesthetic appeal of the CBD and improving sustainability of the overall transport network”
[1] Made up of Alstom, Transdev, Acciona and Capella
Investments as airline expands global network from DFW, improves customer experience
FORT WORTH, Texas — American Airlines has announced plans to build a new, larger catering kitchen at Dallas Fort Worth International Airport (DFW). The new facility is part of American’s long-term growth strategy at its largest hub, and will allow the airline to better serve customers as it grows.
The investment reaffirms American’s commitment to grow and improve customer experience at DFW. In addition to the new kitchen, construction is also slated to begin ona a state-of-the-art aircraft parts distribution facility, which will help reduce maintenance delays by providing parts from DFW to American’s global network.
This year alone, American has expanded at DFW by adding 15 more gates and increasing the amount of flying to 900 daily departures. Additionally, the airline introduced a Flagship Lounge to serve premium customers travelling to international destinations. The growth is part of a larger strategy that will continue as American continues to invest in the operational efficiency and customer experience initiatives at DFW.
“DFW remains a great source of opportunity and growth for American,” said Cedric Rockamore, American’s Vice President of DFW of Hub Operations. “These investments will ensure we can continue to welcome the world to and through DFW for a very long time.”
Catering kitchen
American will build a new catering kitchen to support DFW’s current and future catering demands. The new facility will replace the existing catering kitchen, which was built in 1982 and is too small to support the airport’s growing operation. Construction on the new kitchen will begin in January 2020.
“In addition to more space, the new kitchen will provide updated equipment and efficiencies to improve our catering operation, which improves our reliability and provides a better experience for our customers,” Rockamore said.
The $100 million construction project will take about 18 months to complete and supports the first phase of development for DFW’s new Terminal F. This phase includes four new gates and customer areas located on the southeast corner of Terminal D and is scheduled to open in 2022.
The kitchen will continue to be staffed and operated by LSG Sky Chefs, the airport’s largest catering vendor.
Central Fulfillment Center and cargo mail facility
American plans to break ground in January 2020 on a new Central Fulfillment Center that will house aircraft parts for line maintenance support across our network. The 390,000-square-foot facility will enable the airline to fulfill request for parts up to 75% faster, minimizing potential maintenance delays. Locating this facility at DFW enhances our ability to distribute parts for overnight maintenance throughout the network.
This project will also include a facility for cargo mail, a key revenue stream and narrowbody product for American Airlines Cargo. The expanded space will allow the Cargo team to optimize fleet, network and market demands for transporting mail.
Terminal expansion
To support the demand for additional growth, DFW continues to develop new and optimize existing terminal spaces. These efforts include two new gates and customer areas at Terminal E, which American will utilize to support summer 2020 flying, and the continued development of Terminal F.
With the first phase of development for Terminal F underway, details of the additional phases will be developed as American and DFW continue to study infrastructure demands and customer needs.
LONDON and SOUTHLAKE, Texas, Dec. 4, 2019 /PRNewswire/ — Wizz Air (PNK: WZZAF) Europe’s greenest airline and leading low cost carrier in Central Eastern Europe, has selected Sabre Corporation (NASDAQ: SABR), the leading technology provider to the global travel industry, as a strategic partner to enhance its network planning and scheduling technology. With this new agreement, Wizz Air joins a portfolio of more than 80 airlines that have implemented Sabre’s leading technology to optimize complex schedule and slot management processes.
Sabre has a strong reputation in driving results through its intelligent planning and scheduling solutions. Empowering collaborative and intelligent decision-making, Sabre AirVision Schedule Manager helps airlines build and deliver robust, accurate and operationally feasible schedules across their networks. This proven solution has helped airlines achieve up to 9% incremental operating profit and up to 12% increase in productivity.
Wizz Air has implemented Sabre AirVision Slot Manager and Schedule Manager, equipping it with the right mechanisms to reduce the risks of losing valuable historic slot rights, while enabling increased productivity and a fast response to rescheduling.
“Adopting the right planning and scheduling technology has a significant impact on revenue optimization and cost reduction, as well as running a robust and efficient operation,” said George Michalopoulos, chief commercial officer at Wizz Air. “Sabre’s end-to-end planning and scheduling suite provides Wizz Air with the intelligence and flexibility needed to deploy optimized schedules.”
Sabre’s agreement with Wizz Air reflects its ongoing investment in creating technology solutions that are perfectly adapted to the requirements of different airline business models. With a customer community that includes a portfolio of airlines in the network, low-cost and ultra-low-cost categories, Sabre is consistently driving innovation through its partnerships.
“Wizz Air has a solid and ambitious plan for profitable expansion, and therefore needed a strong technology partner,” said Alessandro Ciancimino, vice president sales Europe, Travel Solutions, Sabre. “Sabre’s suite of technology helps airlines to get schedules to market faster, rapidly respond to market conditions in real time, and more efficiently manage a growing network of routes – which will help it position itself competitively, and differentiate itself among increased competition.”
About Sabre Corporation Sabre Corporation is the leading technology provider to the global travel industry. Sabre’s software, data, mobile and distribution solutions are used by hundreds of airlines and thousands of hotel properties to manage critical operations, including passenger and guest reservations, revenue management, flight, network and crew management. Sabre also operates a leading global travel marketplace, which processes more than US$120 billion of global travel spend annually by connecting travel buyers and suppliers. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world.
About Wizz Air Wizz Air, the largest low-cost airline in Central and Eastern Europe, offers more than 700 routes from 25 bases, connecting 152 destinations across 44 countries. A team of more than 5,000 aviation professionals delivers superior service and very low fares making Wizz Air the preferred choice of 38 million passengers in the past 12 months. WIZZ operates an all-Airbus fleet of 120 aircraft. Its A320s are equipped with 180 seats, its A321s with 230 seats and its A321neo aircraft with 239 seats. According to the latest data of the Swiss airline intelligence provider CH-Aviation, Wizz Air has one of the youngest airline fleets in the world.
Dubai, UAE, November 17th, 2019 – Embraer announced today, at the Dubai Air Show, that Air Peace, Nigeria and West Africa’s largest airline, has signed a contract for three additional E195-E2s, confirming purchase rights from the original contract, signed in April this year. These new E195-E2s will be included in Embraer’s 2019 fourth-quarter backlog and have a value of USD 212.6 million, based on Embraer’s current list prices.
Set to be the first E-Jets E2 operator in Africa, Air Peace’s firm order, announced in April this year, is now for 13 E195-E2s with 17 purchase rights for the same model. The first delivery is scheduled for the second quarter of 2020.
“The E195-E2 is the perfect aircraft to expand our operations in Africa and this new order is a further confirmation of our ‘no-city-left-behind initiative which we shall continue to execute”, said Air Peace Chairman/CEO, Mr. Allen Onyema. He added, “We are receiving impressive data about the aircraft’s economics now that is in revenue service, and this was a driver to place this new firm order with Embraer. We look forward to receiving our first aircraft, which will enhance connectivity in Nigeria and the African region, while feeding long-haul flights from our Lagos hub.”
“Air Peace will love the aircraft’s efficiency and the passenger will experience an unparalleled level of comfort, especially in first class – Air Peace is the launch customer for Embraer’s new premium staggered seating option”, said Raul Villaron, Vice President Sales, Africa and Middle East, Embraer Commercial Aviation. “We look forward to supporting Air Peace’s growing E2s fleet and to deepening our fruitful partnership.”
Air Peace subsidiary, Air Peace Hopper, started operating six ERJ145 jets last year on short thin routes. That experience with Embraer’s products and services, including the pool programme, and the undeniable economic benefits of right-sizing aircraft for the mission, was a key factor in selecting the E2.
Air Peace’s E195-E2s will be configured in a comfortable dual class arrangement with 124 seats. Air Peace operates more than 20 local, regional, and international routes and has strategic plans to expand those routes.
Embraer is the world’s leading manufacturer of commercial jets up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft.
Supply chain deals include Landing Gear Exchange and Quick Engine Change kit solutions
Companies also establish agreement to add regional MRO provider to Boeing’s growing global network
DUBAI, United Arab Emirates, Nov. 17, 2019 — Boeing [NYSE:BA] and EGYPTAIR MAINTENANCE & ENGINEERING (EGME) today announced agreements that will approve the Cairo-based MRO as Boeing’s first maintenance supplier in Africa and the Middle East region. The agreement enables EGME to provide aircraft, engines and component maintenance services and solutions to Boeing customers.
EGME will also receive landing gear exchange and overhaul support through the Boeing Landing Gear Exchange Program. The program provides flexible exchange solutions that allow customers to quickly repair and replace serviceable landing gear in hours.
Boeing will also supply parts for a Quick Engine Change kit. The kit includes hardware and components used to efficiently build up a spare engine to service-ready condition, lowering the maintenance time required to replace an engine and return aircraft to service.
“EGYPTAIR is optimizing operations for our growing fleet, which includes a sixth 787-9 Dreamliner aircraft, to always deliver a better experience for our customers,” said Ahmed Adel, chairman and CEO of EGYPTAIR Holding Company. “We are able to leverage the strength of a global supply chain network and increase efficiency by continuing to partner with Boeing.”
EGYPTAIR’s maintenance, repair and overhaul (MRO) subsidiary, EGYPTAIR Maintenance & Engineering (EGME), also signed a supplier agreement that will allow EGME to support Boeing’s customers with parts provisioning, engineering support and line maintenance.
“EGYPTAIR Maintenance & Engineering brings strong technical expertise with locations across the Middle East and Africa that enable us to better serve our customers in the region,” said Ted Colbert, president and CEO of Boeing Global Services. “Our customers rely on us to keep their airplanes in revenue service. With our global supplier network, which now includes EGME, we help make sure that our customers and their passengers fly Boeing airplanes with confidence every single day.”
“It’s another milestone in EGME’s strategy of growth in the global market as a leading MRO in Africa and the Middle East region,” said Mostafa Ali El-Din, chairman and CEO of EGME. “We are pleased to be part of Boeing’s global network, which reflects a great trust in our capabilities and personnel experience. EGME will utilize its wide-scope capabilities to provide the best technical services to customers who aspire for well-maintained fleet in service.”
In Boeing’s Services Market Outlook, the company forecasts rapid growth in the Middle East region’s commercial and government aviation services market, doubling the growth rate in North America.
The Italian government is begging U.S. major Delta Air Lines, Inc. (NYSE: DAL) to up the proposed acquisition of a 10% stake in Alitalia for $100 million to at least 15%, according to a report in Italian media.
Loss-making Alitalia has been seeking new investors for more than two years after going into administration in May 2017 after workers rejected a plan to cut jobs and salaries. Successive Italian governments have had to balance the carrier’s massive losses with the need to placate a heavily unionized workforce.
FILE PHOTO: A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse
(Reuters) – Spirit Airlines <SAVE> on Friday cut its third-quarter outlook for a key revenue measure as it estimates an about $25 million hit on its sales, hurt by hundreds of flights cancellations due to Hurricane Dorian.
The company now expects third quarter unit revenue to fall between 2.5% and 3.5% compared to its prior estimate of a decline of 1% to 2%.
The hurricane has led airline operators including American Airlines <AAL.O> and Delta Air Lines <DAL.N> to cancel thousands of flights across the United States this week.
Dorian, which briefly made a landfall on the Outer Banks of North Carolina on Friday, is expected to bring tropical storm winds to Nantucket Island and Martha’s Vineyard, Massachusetts early on Saturday
MILAN, Sept 5 (Reuters) – Companies hoping to rescue Italian carrier Alitalia will ask for a deadline for presenting their plan to be extended as they are still negotiating key aspects, two sources familiar with the matter said.
Italian railway group Ferrovie dello Stato, which is leading an effort to take control of Alitalia, is expected to ask administrators running the carrier for a “substantial” delay to the Sept. 15 deadline, one of the sources said.
It would be the sixth delay since Ferrovie expressed its interest in investing in the carrier at the end of last year.
Ferrovie, infrastructure group Atlantia and U.S. carrier Delta Air Lines have been discussing a joint plan for Alitalia for nearly two months, but they are at odds over highly-profitable North American routes, three sources familiar with the matter said.
The Italian partners in the consortium want Alitalia to have more freedom to expand its North American routes compared to what Delta is currently offering under a new cooperation agreement dubbed Blue Skies that it has set up with Air France KLM and Britain’s Virgin Atlantic.
How Alitalia would share the revenue coming from North American routes with Delta and other partners in the Blue Skies alliance is also under negotiation.
“The role of Alitalia in the Blue Skies alliance is a point of contention,” one of the sources said.
Long-haul flights to the United States and Canada account for more than one third of Alitalia’s revenue and are considered key to reviving the Italian carrier, which was put under special administration in 2017 after workers rejected the latest in a long line of rescue plans.
Administrators appointed by Italy’s government have cut costs and renegotiated plane leasing contracts to make Alitalia more efficient, but the carrier still burns cash and had been kept afloat thanks to a 900 million-euro bridging loan granted by Italy’s treasury.
Alitalia had only 410 million euro left in its coffers in July and would need fresh funds by the end of the year when it is expected to post a loss, according to another source.
Delta and Ferrovie declined to comment. (Additional reporting by Tracy Rucinski in Chicago Editing by Alexandra Hudson)
IT IS NOT TRUE THAT INTERJET IS IN TECHNICAL BANKRUPTCY
The handling of the information published by Bloomberg is irresponsible.
The news agency made a misinterpretation of the judicial review filed by Interjet in its legal dispute with the Internal Revenue Service of Mexico.
Mexico City, August 30, 2019.- Interjet categorically denies that it is bankrupt as published by the Bloomberg news site. The news agency made a misinterpretation of the constitutional claim filed by the airline in the dispute that it holds with the Internal Revenue Service of Mexico (SAT).
Bloomberg had access to a file that by law is not supposed to be public. In a judicial dispute, the only persons entitled to consult the records are those authorized by the parties involved in the trial.
At no time, the company has recognized the existence of a technical bankruptcy as this media outlet states.
It should be noted that bankruptcy can only be declared by court order, and cannot be self-imposed by the debtor or any other entity. It’s a legal process through which the insolvency of a company has to be proved. This is not the case of the current situation of Interjet because the company continues paying its debts.
Bankruptcy cannot be declared by a company or by an individual, and this determination corresponds to a court.
Interjet reserves its right to pursue any available legal actions against Bloomberg.
