AKARTA (Reuters) – An Indonesian court on Friday jailed Emirsyah Satar, a former chief executive of Garuda Indonesia, for bribery and money laundering related to procurement of planes and engines from Airbus and Rolls-Royce, his laywer said.
Satar’s lawyer Luhut Pangaribuan said his client had been given an eight-year sentence and fined S$2 million ($1.4 million) by the country’s corruption court.
Indonesia’s Corruption Eradication Commission (KPK) had indicted Satar, CEO of Garuda from 2005 to 2014, over payments from a businessman via a third party for the procurement by Garuda Indonesia of Roll-Royce Trent 700 engines and Airbus A320 and A330 planes.
The indictment also related to the procurement of Airbus planes for PT Citilink Indonesia, a unit of Garuda.
In 2017 Rolls-Royce agreed to pay authorities more than $800 million to settle charges after an investigation by the U.S. Justice Department and Britain’s Serious Fraud Office into alleged bribery of officials in six countries in schemes that lasted more than a decade.
Airbus in February this year agreed to pay a record $4 billion in fines after reaching a plea bargain with prosecutors in Britain, France and United States over alleged bribery and corruption stretching back at least 15 years.
Satar, who had previously denied wrongdoing, will decide next week whether to appeal against his sentence, said Pangaribuan.
($1 = 1.4139 Singapore dollars)
(Reporting by Agustinus Beo Da Costa; Writing by Ed Davies; Editing by David Goodman)
HONG KONG, April 19 (Reuters) – United Airlines will sell and lease back 22 planes to Bank of China (BOC) Aviation, a statement from the aircraft investor released to the Hong Kong Stock Exchange said on Sunday.
The deal involves six Boeing 787-9 aircraft and 16 Boeing 737-9 MAX aircraft from United Airlines, the statement said.
The Singapore-based BOC Aviation did not reveal how much the purchase was worth but said the planes would be leased back to United on long-term agreements.
United said on Wednesday it had reduced its flight schedule in May by 90% and expects similar cuts for June as a result of the coronavirus pandemic.
The U.S. airline also said it flew less than 200,000 people in the first two weeks of April, a 97% drop from the more than 6 million people it flew during the same time in 2019.
BOC Aviation, which focuses on aircraft leasing, has a fleet of 567 planes owned, managed or on order as at the end of March, the statement said
The transaction was finalised on Friday and the deal is expected to close later this year, the statement said.
(Reporting by Scott Murdoch. Editing by Jane Merriman)
(Reuters) – British aero-engine maker Rolls-Royce will abandon its targets on profits, cash and deliveries, and suspend its dividend, as airlines around the world ground planes due to the coronavirus outbreak, the Financial Times reported late on Sunday.
Rolls-Royce is also aiming to announce new credit facilities in excess of 1 billion pounds ($1.22 billion) to bolster liquidity, the newspaper said https://on.ft.com/2ULsL7q.
Rolls-Royce, which makes engines for large civil and military planes, has been hit hard by the pandemic as its airline customers park hundreds of planes.
In March, engine flying hours were down by about 40%, the newspaper said, citing a source. The company is paid by airlines based on how many hours its engines fly.
At the end of February, Rolls Royce had forecast 2020 free cash flow of 1 billion pounds, excluding any material impact from COVID-19. The group will ditch that pledge, the FT said.
The dividend payment of 11.7 pence per share, which has been frozen since 2016, will also be suspended, the newspaper added.
Rolls-Royce declined to comment.
In addition, the FT said the company on Monday will reopen its civil aerospace facilities in the UK with a fraction of the normal workforce, after suspending operations in March.
The company could also eventually furlough some 50% of its 7,500 UK shop-floor workers, with wages supported by government subsidy, two sources told the newspaper.
(Reporting by Bhargav Acharya in Bengaluru; Editing by Daniel Wallis and Richard Pullin)
Rolls Royce engine of the first Fiji Airways A350 XWB airliner is seen at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse
Boeing is extending the temporary suspension of production operations at all Puget Sound area and Moses Lake sites until further notice. These actions are being taken in light of the company’s continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities.
During the suspension, the company will continue to implement additional health and safety measures at its facilities to protect employees. These measures include new visual cues to encourage physical distancing, more frequent and thorough cleaning of work and common areas and staggering shift times to reduce the flow of employees arriving and departing work, among many other improvements.
“The health and safety of our employees, their families and our communities is our shared priority,” said Boeing Commercial Airplanes President and CEO Stan Deal. “We will take this time to continue to listen to our incredible team and assess applicable government direction, the spread of the coronavirus in the community and the reliability of our suppliers to ensure we are ready for a safe and orderly return to operations.”
The volunteers who have been supporting essential site and services work should continue to report to their assigned shifts. Puget Sound area and Moses Lake employees who can work from home should continue to do so.
As the suspension of operations continues, Boeing will monitor government guidance and actions on COVID-19 and associated impact on all company operations. Boeing sites that remain open are being monitored and assessed on a daily basis.
Aircraft is first of 20 CH-47F Chinooks to be delivered to RNLAF
Netherlands is one of eight NATO nations to operate the heavy-lift helicopter
Boeing [NYSE: BA] recently delivered the first CH-47F Chinook with an upgraded cockpit to the Royal Netherlands Air Force (RNLAF), continuing a track record of on-time deliveries to customers. The RNLAF will operate a fleet of 20 CH-47F Chinooks, the newest configuration in use by countries around the world.
“The RNLAF made it clear to us that they need the advanced, proven capability of the CH-47F now,” said Andy Builta, vice president of Cargo & Utility Helicopters and H-47 program manager. “I want to thank our phenomenal team for working hard during a difficult situation to safely deliver these aircraft. This is a reminder to all of us of how important Chinooks are to our customers.”
The 20 CH-47F Chinooks will be a fleet equipped with the same state-of-the-art technology as the U.S. Army, including digital automatic flight controls, a fully-integrated Common Avionics Architecture System (CAAS) glass cockpit, and advanced cargo handling capabilities. The common configuration leads to lower overall life cycle costs.
The RNLAF currently flies a mix of F-model Chinooks with the Advanced Cockpit Management System (ACMS) and CH-47D Chinooks.
“It has been a pleasure to work closely together with the U.S. Army and Boeing teams to achieve this milestone,” said Col. Koen van Gogh, Netherlands Defence Materiel Organisation. “The Chinook helicopter is a vital asset for our missions and the in-time delivery certainly supports our operational planning. I salute the Boeing workforce for their continued efforts to make this happen in these troubling times, as well as the U.S. Army officials that helped keep us on track.”
Deliveries to the RNLAF are expected to continue into 2021. Chinooks are currently in service or under contract with 20 international defense forces, including the U.S. Army, U.S. Special Operations Forces and eight NATO member nations.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 160,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
JetBlue (NASDAQ: JBLU) has issued the following message to its 23,000 crew members.
It has been a very tough few weeks. We are so proud to see once again how the JetBlue culture brings us together during times of crisis. Thank you for continuing to serve our Customers and deliver the JetBlue experience, particularly when your own lives are being disrupted in so many ways.
With safety our #1 value, we continue to take the measures necessary to protect your health. But as it relates to our business, we are not going to sugarcoat it. Demand continues to worsen, and the writing is on the wall that travel will not bounce back quickly.
We’d like to give you some color on what we are seeing. Last year on a typical day in March we took in about $22 million from bookings and ancillary fees. Throughout this March, our sales have fallen sharply and in the last several days we have taken in an average of less than $4 million per day while also issuing over $20 million per day of credits to Customers for canceled bookings. This is a stunning shift, which is being driven by fewer new bookings, much lower fares, and a Customer cancel rate more than 10 times the norm. If you do the math, $4 million per day does not come anywhere close to covering our daily expenses. It is hard to predict how long these conditions will last and how much more challenging the environment may become.
We are not alone. Virtually every major carrier is taking actions that were almost unthinkable a few weeks ago, making huge schedule reductions and parking significant portions of their fleets.
Even though we entered this from a position of strength with a strong balance sheet and cash in the bank, because of the dramatic fall-off in bookings, we need to reduce our spending immediately so that we can continue to fund JetBlue’s operations and ensure your jobs are protected. We have already announced an initial capacity reduction, pay cuts for our officers (VPs and above), voluntary time off programs, re-negotiated Business Partners agreements, and other spending reductions.
We’ve taken swift and decisive actions to protect you, but we must do more and do so quickly to weather this storm.
Reducing our flying to reflect demand We are reducing our capacity in the coming months, with a reduction of at least 40% in April and May. We also expect substantial cuts in June and July, and given the unpredictability of this event, we will ground some of our aircraft. We know this is not an easy move – it will impact hours for many frontline Crewmembers, but it is also essential that we reduce capacity in the face of dramatically falling demand.
We will be notifying Customers of their specific cancellations in a phased approach so that we do not overwhelm Customer Support as they continue to receive exponentially more calls than they ever have before.
Reviewing our fleet plan One of our most substantial capital expenses is the purchase of new airplanes. In collaboration with Airbus, we are looking at our order book for opportunities to slow deliveries and reduce aircraft pre-delivery payments (PDPs). We will also defer the four previously used airplanes that we announced earlier this year.
Cutting our capital and operational spending We will reduce spending wherever we can to preserve our cash, and both of us will be taking a 50% pay reduction during this crisis.
We entered the year with a list of major initiatives to invest in our infrastructure, technology and real estate. As of today, we have paused or stopped more than 75% of these projects and will continue to stand down work wherever we can.
Increasing our cash reserves The dramatic loss of revenue in recent days means we will have to start dipping into our cash savings. Although we came into this with about $1.2 billion, our expenses total millions of dollars each day. The good news is we have secured a new liquidity facility – an extra credit line – which allowed us to borrow $1 billion. This is not free money – it’s a band-aid solution that holds us over and we have to pay it back with interest. Even with these cash reserves we, like the rest of the industry, will need significant government support to help us through these losses.
Calling for government intervention The governmental warnings and actions taken to manage this health crisis have hit both domestic and international travel hard. We have been coordinating with Airlines for America (A4A) and other U.S. airlines to ensure government leaders understand the threat to our global economy if air travel is not supported. When this pandemic passes – and it will – air travel will play a major role in getting life back to normal and supporting economic recovery. We are going to need significant government help to do that. This is not a position we’d like to be in, but government assistance will help us protect our 23,000 Crewmembers who are our most important priority as we navigate these turbulent times.
From the beginning we have faced many challenges and, against all odds, we have thrived through some incredibly difficult events. Now we are faced with what is by far the biggest challenge our company and our industry has ever seen. While we know this is an incredibly difficult time for all of you as you work to juggle your own concerns around coronavirus, we have come through other challenges in our 20 year history and we can – and will – come through this together.
The next few months won’t be easy, but please know that all the steps we’re taking today are focused on protecting the health and safety of our Crewmembers and Customers and ensuring JetBlue remains a great place for you to work well into the future.
Japan’s five-star carrier plans to acquire 11 787-10 airplanes, four 787-9s jet and five options
Deal marks ANA’s sixth Dreamliner purchase; order book to eclipse 100 airplanes once options are exercised
ANA plans to use the largest, most efficient Dreamliner to replace certain domestic 777 models
Boeing [NYSE:BA] and ANA HOLDINGS INC. announced the Japanese airline group today decided to acquire up to 20 more 787 Dreamliner airplanes. The agreement with Boeing includes 11 787-10s, one 787-9 and options for five 787-9s valued at more than $5 billion at list prices. The airline also plans to acquire three new 787-9 airplanes from Atlantis Aviation Corporation.
Once the agreements are finalized, it will be ANA’s sixth order for the ultra-efficient and passenger-pleasing Dreamliner and bring their overall 787 order book to more than 100 airplanes.
“Boeing’s 787s have served ANA with distinction, and we are proud to expand our fleet by adding more of these technologically-advanced aircraft,” said Yutaka Ito, Executive Vice President of ANA and ANA HD. “These planes represent a significant step forward for ANA as we work to make our entire fleet even more eco-friendly and further reduce noise output.”
With this order, the airline will add 11 of the largest and most fuel-efficient Dreamliner models, the 787-10 to its world-class fleet. Powered by a suite of new technologies and a revolutionary design, the 787-10 set a new benchmark for fuel efficiency and operating economics when it entered service in 2018. The airplane allows operators to achieve 25 percent better fuel efficiency per seat compared to older airplanes in its class.
ANA sees the 787-10 as the perfect airplane to replace previous domestic 777 models that are slated for retirement.
“Introducing the 787-10 on our domestic routes will help ANA Group maintain its leadership role and improve our ability to operate as a responsible corporate citizen,” Yutaka Ito said.
ANA became the global launch customer of the 787 Dreamliner when it placed its initial order in 2004. Since then, like half of all Dreamliner operators, the Japanese carrier has placed follow-on orders. However, ANA is in a class by itself as the world’s biggest 787 operator with 71 airplanes in its fleet and 12 more to be delivered prior to the latest agreement. The new deal will bring the 11 additional 787-10 airplanes, one 787-9 and options for five more 787-9 jets.
ANA is also in the launch customer group for Boeing’s new 777X.
“ANA has grown into one of the leading airline groups in Asia by continually raising the bar for customer satisfaction and investing in the most technologically-advanced and capable fleet. We are truly honored that ANA HD is coming back to order more 787 planes with plans to boost their Dreamliner fleet to more than 100 jets,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing, The Boeing Company. “We are confident that the unique capabilities of the 787-10 will continue to safely serve its passengers with best-in-class comfort and reliability.”
The 787 Dreamliner is playing an important role in reducing carbon emissions around the world. Since the first 787 entered commercial service in 2011, the Dreamliner family has saved more than 48 billion pounds of fuel. In addition, the 787 fleet’s noise footprint is 60 percent smaller than those of the airplanes it replaces.
ANA HD’s new 787 jets will be powered by GE’s GEnx-1B engines. The new engines will contribute to the 25 percent improved fuel efficiency per seat of the 787-10.
SINGAPORE, Feb 11 (Reuters) – Boeing Co said on Tuesday that lessor BBAM had ordered three 737-800 converted freighters to serve the growing e-commerce market and express sectors of the air cargo market.
The planes to be converted will come from BBAM’s existing fleet. “This agreement shows how we can serve our customers by delivering efficient and reliable airplanes and a portfolio of services that extracts value throughout the life of those jets,” said Ihssane Mounir, Boeing’s senior vice president of Commercial Sales and Marketing.
Boeing also said it would inaugurate a 737-800 passenger to freighter conversion line in China this summer.
The new line will be at Guangzhou Aircraft Maintenance Engineering Company Ltd (GAMECO), a joint venture between China Southern Airlines Co Ltd and Hutchison Whampoa.
(Reporting by Jamie Freed; Editing by Himani Sarkar)
Three hour, 51 minute flight marks new phase for rigorous test program
Largest and most fuel efficient twin-engine commercial jet expected to deliver in 2021
The new Boeing (NYSE: BA) 777X jetliner took to the skies today, entering the next phase of its rigorous test program. Based on the popular 777 and with proven technologies from the 787 Dreamliner, the 777X took off in front of thousands at Paine Field in Everett, Washington, at 10:09 a.m. local time for a three hour, 51 minute flight over Washington state before landing at Seattle’s Boeing Field.
“The 777X flew beautifully, and today’s testing was very productive,” said Capt. Van Chaney, 777/777X chief pilot for Boeing Test & Evaluation. “Thank you to all the teams who made today possible. I can’t wait to go fly your airplane again.”
Capt. Chaney and Boeing Chief Pilot Craig Bomben worked through a detailed test plan to exercise the airplane’s systems and structures while the test team in Seattle monitored the data in real time.
“Our Boeing team has taken the most successful twin-aisle jet of all time and made it even more efficient, more capable and more comfortable for all,” said Stan Deal, president and CEO of Boeing Commercial Airplanes. “Today’s safe first flight of the 777X is a tribute to the years of hard work and dedication from our teammates, our suppliers and our community partners in Washington state and across the globe.”
The first of four dedicated 777-9 flight test airplanes, WH001 will now undergo checks before resuming testing in the coming days. The test fleet, which began ground testing in Everett last year, will endure a comprehensive series of tests and conditions on the ground and in the air over the coming months to demonstrate the safety and reliability of the design.
The newest member of Boeing’s market-leading widebody family, the 777X will deliver 10 percent lower fuel use and emissions and 10 percent lower operating costs than the competition through advanced aerodynamics, the latest generation carbon-fiber composite wing and the most advanced commercial engine ever built, GE Aviation’s GE9X.
The new 777X also combines the best of the passenger-preferred 777 and 787 Dreamliner cabins with new innovations to deliver the flight experience of the future. Passengers will enjoy a wide, spacious cabin, large overhead bins that close easily for convenient access to their belongings, larger windows for a view from every seat, better cabin altitude and humidity, less noise and a smoother ride.
Boeing expects to deliver the first 777X in 2021. The program has won 340 orders and commitments from leading carriers around the world, including ANA, British Airways, Cathay Pacific Airways, Emirates, Etihad Airways, Lufthansa, Qatar Airways and Singapore Airlines. Since its launch in 2013, the 777X family has outsold the competition nearly 2 to 1.
About the Boeing 777X Family
The 777X includes the 777-8 and the 777-9, the newest members of Boeing’s market-leading widebody family.
(Reuters) – Boeing Co <BA> reported its worst annual net orders in decades on Tuesday, along with its lowest numbers for plane deliveries in 11 years, as the grounding of its 737 MAX jet saw it fall far behind main competitor Airbus <EADSY>.
Boeing’s gross orders plunged 77% to 246 in 2019, while net orders after cancellations or conversions were just 54 airplanes compared with 893 the previous year.
After an accounting adjustment representing jets ordered in previous years but are now unlikely to be delivered, Boeing said its net total for orders this year sank to a negative 87 airplanes.
As a result, Boeing’s book-to-bill ratio, which measures orders against deliveries, came in at a negative 0.23 in 2019.
Boeing said unidentified customers canceled orders for three 787-9’s in December and another customer canceled an order for a 787-8.
Ten months after the MAX was grounded in March following two fatal crashes, Boeing still has a backlog of more than 5,400 orders for its long- and short-distance commercial jets.
By comparison, Airbus said earlier this month it racked up a net 768 orders last year after cancellations and delivered a record 863 planes.
Boeing said on Tuesday deliveries fell by 53% to 380 planes over the whole of last year, as the MAX’s grounding made it impossible for it to deliver the planes to customers, forcing it to halt production last month and lose the top spot to its European rival for the first time in eight years.
Planemakers receive most of their revenue when aircraft are delivered – minus accumulated progress payments – making final delivery crucial for their finances.
Analysts estimate that Boeing has been losing around $1 billion a month because of the grounding and it reported an almost $3 billion negative free cash flow in the third quarter. Fourth-quarter figures are due on Jan. 29.
Boeing parted ways with Chief Executive Officer Dennis Muilenburg last month as it became increasingly clear that he was making little headway in resolving the crisis.
The company is still working to fix the MAX and there is little clarity on when Boeing is likely to get the green light from regulators to bring the airplane back into service, making analysts and investors jittery about the company’s prospects in 2020.
(Reporting by Tim Hepher in Paris, and Ankit Ajmera and Rachit Vats in Bengaluru; Editing by Patrick Graham, Shounak Dasgupta and Amy Caren Daniel)
Unpainted Boeing 737 MAX aircraft are seen parked at Renton Municipal Airport in Renton
