Tag: china (Page 5 of 16)

Boeing Activates Airlift Capability for First COVID-19 Transport Mission

April 20, 2020 / WIL BALDWIN

Boeing [NYSE: BA] completed its first COVID-19 transport mission, using a 737-700 aircraft from its corporate fleet to bring personal protective equipment (PPE) from China to the United States. Working in partnership with FIRST® Robotics Founder Dean Kamen, the company transported 540,000 medical-grade face masks that will be delivered to healthcare professionals battling COVID-19 in New Hampshire.

Kamen, who has a longstanding relationship with Boeing through FIRST Robotics, is also a founder of DEKA Research and Development Corporation. He worked with DEKA to secure the face masks from manufacturers in China and turned to Boeing to facilitate their transport. DEKA is the importer of record for the delivery and provided the masks to New Hampshire for distribution to healthcare professionals in the state.

“Another life-saving delivery of PPE has arrived in New Hampshire,” said Governor Chris Sununu. “Thanks to Dean Kamen for facilitating this deal, and to Boeing for donating the cost of this mission transport. The state will deliver these masks to the greatest areas of need across New Hampshire so those on the frontline have the necessary resources to fight COVID-19.”

“Boeing has been a long-time partner of FIRST Robotics and I’m proud that I can again partner with the Boeing team to meet the needs of our frontline healthcare professionals fighting COVID-19,” said Kamen. “Now more than ever, help from companies like Boeing is critical so we can continue to make sure protective equipment gets to the people who need it most.”

Boeing continues to support local communities and the heroic healthcare professionals working tirelessly to stop the spread of COVID-19. Additional airlift transport missions with the Boeing Dreamlifter and ecoDemonstrator are planned in the future. Boeing is coordinating closely with U.S. government officials on how to best assist areas with the greatest need.

“I want to personally thank Governor Sununu, the entire New Hampshire congressional delegation and Dean Kamen for their leadership in helping secure and distribute this much-needed personal protective equipment for our frontline healthcare workers and first responders here in New Hampshire,” said Dave Calhoun, Boeing president and CEO. “We are honored to have conducted today’s airlift mission and we look forward to providing continued support in the fight against this pandemic.”

A Boeing-owned aircraft loads 540,000 medical-grade masks in China destined to New Hampshire. (Boeing photo)

German Carmakers to Resume Production as Lockdowns Ease

April 16, 2020 / WIL BALDWIN

FILE PHOTO: VW hosts photo workshop at Zwickau plant

FRANKFURT (Reuters) – German carmakers including Volkswagen <VOW.DE> and Mercedes-Benz <DAI.DE> will restart production at some German factories next week after the country eased restrictions designed to contain the coronavirus outbreak.

Chancellor Angela Merkel on Wednesday said that Germany has achieved a “fragile intermediate success” in its the fight against the coronavirus and that its emergence from lockdown would begin with the partial reopening of shops next week and schools from May 4.

Unlike Italy and Spain, Germany never banned car production, though factories came to a standstill after authorities restricted the movement of people and ordered the closure of car dealerships, hitting demand.

Volkswagen said it will start producing cars for its core brand in Zwickau, Germany, and in Bratislava, Slovakia, on April 20.

Plants in Russia, Spain, Portugal and the United States will ramp up production from April 27 onwards, joined by factories in South Africa, Argentina, Brazil and Mexico in May.

“With the decisions by the federal and state governments in Germany and the loosening of restrictions in other European states, conditions have been established for the gradual resumption of production,” Ralf Brandstaetter, Chief Operating Officer of the Volkswagen brand, said in a statement.

The carmaker has retooled production to ensure that workers keep 1.5 metres apart. Other measures include the staggering of shifts and lunch breaks, plus steps to change worker interaction in VW’s supply chain.

Bernd Osterloh, Chairman of the company’s Works Council, said: “In the light of the pandemic, we need to adapt our routines. One answer is our new agreement on health protection. With about 100 measures, we are keeping the risk of infection at Volkswagen as low as possible.”

In China, where a Volkswagen has already implemented health measures, 32 of the 33 plants have resumed production and no coronavirus infections among employees have been reported.

Mercedes-Benz parent Daimler said that its plants in Hamburg, Berlin and Untertuerkheim will resume production next week. Its Berlin plant makes engine-management systems for vehicles sold in China.

Production will initially start in a one-shift system, Daimler said, with plants in Sindelfingen and Bremen also making preparations to ramp up production.

(Reporting by Edward Taylor and Jan Schwartz; Editing by David Goodman)

Airbus A350-1000 Deployed in Fight Against COVID-19

April 6, 2020 / WIL BALDWIN

Airbus continues to purchase and supply millions of face masks from China, the large majority of which will be donated to governments of the Airbus home countries, namely France, Germany, Spain and the UK.

An Airbus flight test crew has just completed its latest mission with an A350-1000 test aircraft. This is the third of such missions between Europe and China. The aircraft returned to France with a cargo of 4 million face masks on Sunday 5 April.

The A350-1000 left Toulouse, France, on Friday 3 April, reaching the Airbus site in Tianjin, China on 4 April and returning to Hamburg the same day.

Since mid-March, the previous two missions were performed by an A330-800 and an A330 Multi-Role Tanker Transport (MRTT). Airbus also deployed an A400M and its Beluga fleet to transport shipments of masks between its European sites, in France, Germany, the UK and Spain.

Airbus will continue to support the fight against the Coronavirus pandemic wherever possible.

“I would like to pay tribute to all the Airbus teams, globally, supporting the fight against COVID-19. They’re living our values in assisting those who are saving lives every day”, said Guillaume Faury, Airbus CEO. “

Airbus is focused on the health and safety of its employees and supporting its customers and the industry eco-system with business continuity. At the same time Airbus is contributing to many vital public and private services and working with partners who rely on aircraft, helicopters, space and security solutions to carry out life-saving missions in support of the global pandemic.

Airbus is deploying its employees, their expertise and know-how and leveraging technology in this fight against the COVID-19 pandemic, for example in designing and manufacturing ventilators and 3D printed visors which are critical resources for hospitals.

The Company is partnering with other organisations in unprecedented ways to achieve this goal as fast as possible.

Tesla to Slash Headcount at Nevada Gigafactory by 75%

March 27, 2020 / WIL BALDWIN

BEIJING/TOKYO (Reuters) – U.S. electric carmaker Tesla Inc <TSLA> plans to slash on-site staff at its Nevada battery plant by around 75% due to the coronavirus pandemic, the local county manager said on Thursday.

The move comes after its Japanese battery partner Panasonic Corp <6752.T> said it would scale down operations at the Nevada factory this week before closing it for 14 days.

The factory produces electric motors and battery packs for Tesla’s popular Model 3 sedans.

“Tesla has informed us that the Gigafactory in Storey County is reducing on-site staff by roughly 75% in the coming days,” Austin Osborne said in a post on the county’s website.

No further details were available and it was not clear how many employees work in the factory. Tesla did not immediately respond to a Reuters request for comment.

The Reno Gazette Journal, which earlier reported the planned suspension, said Panasonic has about 3,500 employees at the Nevada plant.

Tesla said last week it would temporarily suspend production at its vehicle factory in San Francisco Bay Area from end of March 23, as well as at its New York solar roof tile factory.

However, Tesla CEO Elon Musk said the company will reopen the New York plant “as soon as humanly possible” to manufacture ventilators for coronavirus patients.

Two employees of Tesla have tested positive for coronavirus but have been working from home for the past two weeks and had not been symptomatic at work, Tesla said in an email to employees on Thursday. It did not disclose which unit or at what location the employees work.

(Reporting by Yilei Sun and Makiko Yamazaki; Editing by Miyoung Kim and Himani Sarkar)

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.

Airbus Sees Airlines Seeking to Defer or Cancel Orders

March 24, 2020 / WIL BALDWIN

PARIS (Reuters) – Airbus <EADSY> said in a stock market filing on Monday that customers could seek to cancel or postpone delivery of airliners and helicopters as the coronavirus crisis continues to escalate.

It issued the warning in an annual reference document ahead of its upcoming Amsterdam shareholder meeting, for which it urged participants to vote by proxy rather than attend in person due to widespread measures to slow the spread of the disease.

Airbus Chief Executive Guillaume Faury said earlier that several airlines had asked to defer deliveries, but that most were continuing to pay their deposits.

“Weaker market and economic conditions in China and their knock-on effects in other markets could result in requests by customers to postpone delivery or cancel existing orders for aircraft (including helicopters),” the filing said, though Faury said earlier there were some signs of recovery in China.

Airbus also detailed steps to improve compliance practices after paying a 3.6-billion-euro fine last month to settle a four-year multinational bribery probe.

But it warned that possible further investigations in other jurisdictions could trigger claims against it by shareholders, impact its ability to raise finance or limit its eligibility for public contracts, as well as harm future commercial sales.

Malaysian authorities last week cleared AirAsia Group <5099.KL> after Britain’s Serious Fraud Office faulted a sponsorship deal between former Airbus parent EADS and a motor racing team owned by the airline’s co-founders.

But the SFO probe, supported by Airbus’s own lawyers, caused a severe rift between AirAsia and its sole supplier, adding to doubts over whether long-haul unit AirAsiaX will take delivery of A330neo jets on order, three people close to the matter said.

AirAsia officials could not be reached for comment. Airbus declined comment.

Loss-making AirAsiaX has said only that it wants to defer delivery of A330neo jets due to the coronavirus crisis.

Deliveries of the wide-body aircraft have also been hit by the impact of U.S. tariffs on Airbus aircraft under a long-running trade dispute, as well as concerns about overcapacity.

Airbus trimmed A330 output in January from about four a month in 2019, Reuters reported earlier this month.

In Monday’s filing, Airbus said it would maintain production of the A330neo at 3.5 aircraft a month.

(Reporting by Tim Hepher; Editing by Mark Potter, William Maclean)

Volvo to Temporarily Close Plants in U.S. and Sweden

March 20, 2020 / WIL BALDWIN

FRANKFURT (Reuters) – Swedish carmaker Volvo is suspending production at its factories in Sweden, the United States and Belgium, to curb the spread of the coronavirus, it said on Friday, even as it resumes manufacturing in China where the infection rate has slowed.

Volvo’s Swedish factories in Torslanda, Skovde, Olofstrom, and its U.S. plant in South Carolina will close between March 26 and April 14, the company said. Its plant in Ghent, Belgium has already been temporarily shut down.

“Our primary concerns are the health of our employees and the future of our business,” Chief Executive Hakan Samuelsson said. “I think for the economy, we need to do something drastic, rather then trying half-hearted measures that drag on forever.”

“We are seeing the effect from this coronavirus is increasing every day. We see problems in the logistics supply side,” he told Reuters. “We have to help contributing to social distancing.”

Samuelsson said the financial impact of the shutdown would become clearer when the carmaker published first-half earnings. The company will reduce the working hours of white-collar staff during the factory closures and will take advantage of government incentives, Samuelsson said.

The financial impact on Volvo also depended on how different countries reacted to contain the virus.

“There is a big difference between countries. Some have curfews, with restaurants and schools closed. In other countries there are less drastic measures. I just think we need to synchronise that more.”

(Reporting by Edward Taylor; Editing by Pravin Char)

Air New Zealand Suspends 2020 Earnings Guidance

March 9, 2020 / WIL BALDWIN

Due to increased uncertainty surrounding the duration and scale of the Covid-19 outbreak, Air New Zealand has today announced that it will be withdrawing the full year 2020 earnings guidance it issued to the market on 24 February 2020 and reconfirmed at its interim results announcement on 27 February 2020.

Air New Zealand has taken numerous steps to mitigate the impact of reduced demand resulting from Covid-19, including reducing capacity on its Asia, Tasman and Domestic networks, redeploying its fuel efficient 787 Dreamliner fleet to drive operational efficiencies and using tactical pricing to stimulate demand on the impacted sectors. However, the airline now believes that the financial impact is likely to be more significant than previously estimated and with the situation evolving at such a rapid pace, the airline is not in a position to provide an earnings outlook to the market at this time. An update on earnings expectations will be provided when appropriate.

Over the course of the past week the airline has seen additional softness in demand with a decline in bookings across its network. The further spread of Covid-19 to countries outside of China, including New Zealand, has driven a downward shift in demand.

Chief Executive Officer Greg Foran says that it is increasingly clear that Covid-19 has created an unprecedented situation and it is difficult to predict future demand patterns.

“We have been continuously monitoring bookings and in recent days have seen a further decline which coincides with media coverage of the spread of Covid-19 to most countries on our network as well as here in New Zealand,” says Mr Foran.

In response the airline has implemented further capacity reductions to its network, which include extending the suspension of its Shanghai service through to the end of April, and additional consolidation of services across the Tasman, Pacific Islands and Domestic network in March and April.

As a result of these actions, Air New Zealand has reduced total capacity into Asia by 26 percent, and total overall network capacity by approximately 10 percent since the outbreak of Covid-19 started.

Like the vast majority of its industry peers, the airline is also pursuing a range of mitigations in response to the swift decline of demand. These include the deferral of non-urgent capital spend and non-critical business activity across operational and corporate functions.

Chief Executive Officer Greg Foran has voluntarily offered to reduce his base pay of $1.65 million by approximately 15% ($250,000) with the support of the Board, and Air New Zealand’s Executive team will extend their salary freeze that has been in place since May 2019. On top of this, the airline has implemented a hiring freeze for all roles that are non-critical and will offer operational staff the option to take unpaid leave in addition to managing annual leave balances.

“Air New Zealand is a strong and resilient business operated by a world-class team with deep experience having navigated prior shocks to our business and industry. While we have already made swift adjustments to our operations, we are prepared to take further actions to address the ongoing demand impact of Covid-19,” says Mr Foran.

Summary of Air New Zealand’s response since the Covid-19 outbreak

Overall capacity reductions of approximately 10% across the network, including:
– Asia capacity reduction of 26% through June, including extension of Shanghai route suspension through April
– Tasman capacity reductions of 7% through June
– Pacific Islands capacity reductions of 6% through June
– Reductions across the Domestic network of approximately 4%, with a 10% to 15% reduction in March and April
Various labour initiatives including a voluntary reduction in CEO pay, a hiring freeze for all non-critical roles and voluntary unpaid leave for operational staff
Deferral of non-urgent capital spend and any non-critical business activity

HNA Group Rises After Company Asks Chinese Government for Help

March 1, 2020 / WIL BALDWIN

BEIJING/SHANGHAI, March 2 (Reuters) – Shares in HNA Group-controlled companies rose on Monday after the Chinese aviation and tourism conglomerate said it had asked the government to help it resolve liquidity risk caused by the coronavirus outbreak which has put heavy pressure on the airline industry.

HNA directly owns or holds stakes in a number of local Chinese carriers, which have suffered in recent weeks from widespread flight cancellations and plummeting demand.

Hainan Airlines Holding Co Ltd, the flagship of HNA Group Co Ltd, rose by over 3% by 0400 GMT, while HNA Technology Investments Holdings Ltd surged nearly 40%.

Other units such as HNA Investment Group Co Ltd and HNA Technology Co Ltd also saw their prices climb.

HNA Group said on Saturday it had asked the Hainan provincial government to lead a working group as it was not able to deal with the liquidity risk itself.

The group had acknowledged liquidity issues before the coronavirus outbreak started. In December, Chairman Chen Feng said HNA had faced cash flow shortage that forced it to delay salary payments.

Its Saturday announcement has driven heavy discussion in China on whether there will be a carving up of its assets.

Two weeks ago, HNA-related shares likewise rose on a media report that said China’s government planned to take over the debt-laden conglomerate.

“The implementation of a government acquisition would be challenging as HNA’s structure is complex,” Warut Promboon, head of credit research at Bondcritic, said on Monday. “Overall, it is credit positive. HNA has grown too fast and is too big that it needs to be broken down. The restructuring will be best under the state support.”

Tesla Ordered by German Court to Stop Cutting Down Trees for Gigafactory

February 16, 2020 / WIL BALDWIN

BERLIN (Reuters) – A German court on Sunday ordered Tesla Inc to stop clearing forest land near the capital Berlin to build its first European car and battery factory, a victory for local environmental activists.

The U.S. electric carmaker announced plans last November to build a Gigafactory in Gruenheide in the eastern state of Brandenburg.

The court ruling, by the higher administrative court of the states of Berlin and Brandenburg, comes after the state environmental office gave a green light to clear 92 hectares of forest for the plant.

Planning permission has not yet been granted to build the Gigafactory, however, meaning U.S. entrepreneur Elon Musk’s company is preparing the ground at its own risk.

In a statement, the court said it had issued the order to stop the tree-felling because it would have only taken three more days to complete the work.

Otherwise the clearance would have been completed before judges made a final decision on the complaint brought by a local environmentalist group called the Gruene Liga Brandenburg (Green League of Brandenburg).

“It should not be assumed that the motion seeking legal protection brought by the Green League lacks any chance of succeeding,” the court statement added.

Lawmakers from the pro-business Christian Democrat and Free Democrat parties have warned that the legal battle waged against the Gigafactory would inflict serious and long-lasting damage on Germany’s image as a place to do business.

Local and national lawmakers have been caught out by the strength of opposition to the Gigafactory, with hundreds of demonstrators protesting over what they say is the threat it poses to local wildlife and water supplies.

Tesla currently has two Gigafactories in the United States and one in Shanghai, China.

Tesla shares have surged 340% since early June as more investors bet on Musk’s vision.

(Reporting by Douglas Busvine; Editing by Lisa Shumaker)

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