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Thomas Cook Collapse Prompts International Response

(Reuters) – The collapse of British travel operator Thomas Cook left hundreds of thousands of holidaymakers abroad and forced governments and insurers to coordinate a huge operation to get them home.

FILE PHOTO: Passengers are silhouetted in front of a closed service counter of travel agent Thomas Cook and airline Condor at the airport in Frankfurt, Germany, September 24, 2019. REUTERS/Kai Pfaffenbach

The company ran hotels, resorts and airlines ferrying 19 million people a year to 16 different countries. 

Here is a summary of the impact of the collapse in different countries and efforts to salvage parts of the group: 

GERMANY

Thomas Cook’s German tour business filed for insolvency on Wednesday in a move aimed at separating its brands and operations from its failed parent, and it said it was in talks with potential new investors. 

The German government said it was considering an application for a bridging loan from Thomas Cook Germany, a day after it said it would guarantee a 380 million euro ($418 million) bridging loan for Condor, the British group’s German airline. 

The company is in contact with the German foreign ministry, insurers and other partners to get customers home. Zurich Insurance, which provided insolvency cover to Thomas Cook Germany, will cover the costs for those on holiday. 

About 97,000 holidaymakers were still stranded on Thursday. 

AUSTRIA

Thomas Cook Austria, which belongs to the German unit, also filed for insolvency on Wednesday, with the aim of continuing in business. 

THE NETHERLANDS

The Dutch unit of Thomas Cook canceled all travel booked through Thomas Cook Netherlands and subsidiary Neckermann. 

A Dutch court on Wednesday granted Thomas Cook Nederland B.V., a Netherlands-based subsidiary, protection from creditors. It employed roughly 200 staff. 

POLAND

Thomas Cook’s Polish unit, Neckermann Polska, said on Wednesday that it has filed for insolvency. Poland regional authorities says around 3,600 customers of Neckermann Polska are still abroad. 

BELGIUM

Thomas Cook’s Belgian unit ceased carrying passengers on Tuesday and liquidated two businesses, seeking protection from creditors and ultimately a buyer for Thomas Cook Retail Belgium. 

It still has some 13,400 customers on holidays abroad.

NORDICS

Several planes operated by Thomas Cook Scandinavian Airlines have not been able to take off because their leasing contracts remained with the British parent, Danish subsidiary Spies said. 

It was not immediately clear how the situation would be resolved. 

Thomas Cook’s Nordic business said on Monday it would continue to operate as it is a separate legal entity from its London-listed parent and added that it was looking for new owners. 

The Nordic business consists of two legal entities, Thomas Cook Northern Europe and Thomas Cook Scandinavian Airlines, and is also known as Ving Group. 

The business operates under several brands: Ving in Norway, Spies in Denmark, Tjäreborg in Finland, as well as Ving and Globetrotter in Sweden. 

BRITAIN

Emergency flights had brought 14,700 people back to the United Kingdom on 64 flights on Monday, and around 135,300 more were expected to be returned over the next 13 days, Britain’s aviation regulator said. 

More than 70 flights were scheduled to operate on Wednesday to bring back 16,500 people. 

MEXICO

The collapse of British travel firm Thomas Cook will not have a “significant impact” on Mexico’s tourist industry as it only represents about 0.4% of the sector’s foreign income, the Mexican tourism ministry said on Tuesday. 

BULGARIA

Thomas Cook’s collapse poses a serious challenge to Bulgarian tourism, with dozens of Black Sea hotels facing losses totaling tens of millions of dollars as negotiations for the next summer season take place, its tourism minister said on Tuesday. 

TUNISIA

Tunisian tourism minister Rene Trabelsi told Reuters that 4,500 Thomas Cook customers are still on holiday in Tunisia. 

The British government repatriated about 1,200 tourists via planes sent to Tunisa’s Enfidha airport, and another 4,000 still in Tunisia will return after their holidays. 

FRANCE

The French arm of the business said on Tuesday it was asking the French commercial court of Nanterre for creditor protection 

Thomas Cook France will hold a meeting of its works council on Thursday about a plan to declare insolvency and to start a recovery procedure. 

French organization Entreprises de Voyage said that about 10,000 French tourists could be affected by the bankruptcy. 

SPAIN

The collapse has affected 53,000 Britons in Spain, Spanish Acting Tourism Minister Reyes Maroto told reporters. 

The ministry has been in touch with German and Swedish authorities to ensure Thomas Cook subsidiaries continue to operate at least for the winter season, she added. 

GREECE

A Greek tourism ministry official told Reuters that about 50,000 tourists were affected. 

CYPRUS

Cyprus says 15,000 Thomas Cook customers were stranded on the island. 

HUNGARY

Thomas Cook’s Hungarian unit Neckermann Magyarorszag said it was continuing its operations and all passengers would be able to return from abroad as planned. 

It said its financial situation was stable and its assets were sufficient guarantee that its passengers would not suffer any financial damage. It said passengers should contact its offices directly about upcoming flights. 

RUSSIA

Thomas Cook’s Russian tour operator subsidiary, Intourist, said the bankruptcy of Thomas Cook will have no impact on clients, Executive Director Sergei Tolchin told Interfax. 

TURKEY

The Turkish Ministry of Tourism said it will provide support for local companies affected by the Thomas Cook collapse. 

The head of the country’s Hotelier Federation said about 45,000 tourists from the UK and elsewhere in Europe are in the country. 

MOROCCO

Morocco’s tourism ministry said it had created a crisis unit to handle the fallout from Thomas Cook’s collapse. Thomas Cook operated two flights to Marrakesh a week. No official numbers were given. 

EGYPT

Thomas Cook operator Blue Sky Group said that 25,000 reservations in Egypt booked up to April 2020 had been cancelled. Blue Sky currently has 1,600 tourists in Egypt’s Hugharda resort. 

INDIA

Thomas Cook India said it had been unaffected as it has been a separate entity since August 2012.

Gulfstream Aerospace Expands Wisconsin Service Center

Gulfstream’s expanded facility in Appleton, Wisconsin. The $40 million, 190,000 square-foot building can accommodate 12 Gulfstream G650ER aircraft and employs more than 100 people. (Gulfstream photo)

SAVANNAH, Ga., Aug. 23, 2019 /PRNewswire/ — Gulfstream Aerospace Corp. today announced it has officially expanded its maintenance, repair and overhaul (MRO) operations at Wisconsin’s Appleton International Airport with the opening of a newly built aircraft maintenance facility. The facility has been operational since Aug. 10.

The nearly 190,000 square-foot/17,652-square-meter building, northeast of the airport terminal, was constructed with an investment of approximately $40 million. The expansion to the Appleton service center includes 101,853 sq ft/9,462 sq m of hangar space, which will accommodate 12 Gulfstream G650ER or G650 aircraft. In addition to offices, back shops and general support space, the expansion adds a new sales and design center and increased customer access to Gulfstream’s design portfolio. The project, announced in February 2018, has resulted in nearly 100 new jobs at Gulfstream Appleton, with the potential for more in the next few years.

“This is a very exciting day for Appleton and the entire Fox Valley,” said Derek Zimmerman, president, Gulfstream Customer Support. “This beautiful facility represents the most significant expansion we’ve had in the 20 years we’ve been here. It is a tremendous asset to our site and the community. It will help us enhance the reliability of our growing fleet, support more customers and elevate their experience, continue to maintain a high level of safety and provide a world-class workplace for our employees.

“We are thankful to General Dynamics, the Wisconsin Economic Development Corporation, the Fox Cities Chamber of Commerce Regional Partnership, the Outagamie County Executive, the Outagamie County Board of Supervisors and the town of Greenville Board for their essential support.”

Gulfstream announced the maintenance facility opening before an audience of employees and state and local dignitaries, including Wisconsin Gov. Tony Evers. The company will open four other expanded or new service centers in 2019 and 2020: Savannah, Georgia; Van Nuys, California; Palm Beach, Florida; and Farnborough, England.

Gulfstream Appleton is home to a service center and a large-cabin completions facility spread over approximately 500,000 sq ft/46,452 sq m. It offers customers a broad range of services, including major inspections, structural modifications, major avionics installations and safety upgrades. Its MRO operation is certified by the U.S. Federal Aviation Administration, European Aviation Safety Agency, Civil Aviation Administration of China and seven other civil aviation authorities worldwide. In 2018, Appleton had nearly 500 aircraft visits.

Gulfstream Appleton’s new facility has several sustainable features, including sensitive land protection, rainwater management system, enhanced control systems for heating and cooling, optimized energy performance and electric vehicle charging stations. It is expected to receive U.S. Green Building Council Leadership in Energy and Environmental Design certification.

British Airways Pilots to Strike for 3 Days in September

LONDON, Aug 23 (Reuters) – British Airways pilots are to go on strike for three days in September, their union said on Friday, in a dispute over pay that could disrupt the peak summer holiday season.

Last month, the pilots overwhelmingly voted for industrial action and the airline, which is part of IAG, failed in a court bid to stop them.

“The British Airline Pilots Association (BALPA) has today given notice to British Airways that it will call on its members to strike on 9th, 10th and 27th September 2019,” the union said in a statement.

“It is clear, following discussions with members over the last few days, that BA’s most recent offer will not gain the support of anywhere near a majority of its pilots.”

British Airways said the strike action was unjustifiable as their pay offer was fair and that the strikes would destroy the travel plans of tens of thousands of customers.

“We are now making changes to our schedule. We will do everything we can to get as many people away on their journeys as possible,” the airline said in a statement.

“However, it is likely that many of our customers will not be able to travel and we will be offering refunds and re-bookings for passengers booked on cancelled flights.”

The airline said it was exploring options to supplement its fleet with aircraft and crew from other airlines, known as wet-leasing, and working with partner airlines to schedule larger aircraft to take more customers.

(Reporting by Alistair Smout; editing by Stephen Addison)

Bombardier Confirms 3 Year East Midlands Railway Contract

  • New contract reaffirms long-standing relationships with Abellio and with Eversholt Rail
  • Derby Etches Park depot to maintain Bombardier Class 222s for East Midlands Railway mainline services until 2022

Rail technology leader Bombardier Transportation has announced today that it has signed a new Train Services Agreement (TSA) with Abellio and Eversholt Rail for the new East Midlands Railway franchise in the United Kingdom. Under the new agreement which lasts from today until December 31, 2022, Bombardier will maintain Bombardier class 222 diesel-electric multiple unit (DEMU) trains at Derby Etches Park depot for use on East Midlands Railway mainline services. The new agreement follows Bombardier’s previous role in maintaining the 125 miles per hour trains for the former East Midlands Trains franchise. The contract is valued at approximately £133 million GBP ($161 million US, €145 million euro).

Phil Hufton, President, Bombardier Transportation UK said, “We are delighted that we have reached agreement with Abellio to maintain the Class 222 fleet for East Midlands Railway’s mainline services. This important contract win is testament to our team at Derby Etches Park and their hard work and professionalism in continually delivering one of the highest performing and most reliable Intercity fleets.”

Steve Timothy, Client Relations Director, Eversholt Rail said, “We are pleased to be working in partnership with Bombardier Transportation to support the delivery of our Class 222 trains for the Sheffield – London mainline service to Abellio East Midlands Railway from 19th August”.

Under the Train Services Agreement, maintenance of the 27-strong fleet of Class 222 trains will take place at Derby Etches Park depot, where 130 staff are employed, with heavy component maintenance taking place at Bombardier Crewe.

Dozens of Airbus A380’s Face Urgent Checks

LONDON, Aug 21 (Reuters) – Investigators probing an engine explosion on an Air France A380 in 2017 are studying a possible manufacturing flaw in a recently salvaged cracked part in a move likely to trigger urgent checks on dozens of Airbus superjumbos, people familiar with the matter said.

The focus of a two-year-old investigation into the mid-air explosion over Greenland, which left the plane carrying more than 500 passengers with the front of one engine missing, has switched to the recently recovered “fan hub,” the people said.

The titanium alloy part is the centrepiece of a 3-metre-wide fan on engines built for the world’s largest airliner by U.S.-based Engine Alliance, co-owned by General Electric and United Technologies unit Pratt & Whitney.

It had sat buried in Greenland’s ice sheet since September 2017 when one of four engines on Air France flight 66 abruptly disintegrated en route from Paris to Los Angeles. It was prised from the ice in June after a high-tech aerial radar search.

Confirming the focus of the probe after Reuters reported the plans for inspections, France’s BEA air accident agency said it had discovered a “sub-surface fatigue crack” on the recovered part and the engine maker was preparing checks.

The people familiar with the matter linked the crack to a suspected manufacturing flaw and said the checks – to be carried out urgently on engines that have conducted a certain number of flights – would affect dozens of the double-decker jets.

The people said the suspect part was fabricated on behalf of consortium member Pratt & Whitney, which declined to comment.

Engine Alliance is one of two engine suppliers for the Airbus A380 in competition with Britain’s Rolls-Royce.

Its engines power a total of 152 aircraft or just over 60 percent of the 237 A380s in service.

Besides Air France, other airlines operating the A380 with Engine Alliance powerplants include Dubai’s Emirates, Qatar Airways, Abu Dhabi-based Etihad and Korean Air.

The checks will involve taking some planes out of service outside their usual maintenance schedules, one source said.

Investigations are not complete and are likely to tackle other features such as the loads or physical forces at play. Experts say air accidents are rarely caused by isolated factors.

Europe’s Airbus declined to comment.

SIOUX CITY REMEMBERED

Nobody was hurt in the September 2017 incident, in which the Air France superjumbo diverted safely to Goose Bay in Canada.

Although rare, uncontained engine failures, in which shrapnel capable of puncturing the fuselage exits an engine at extremely high speeds, automatically raise alarm.

The checks come weeks after relatives marked 30 years since an engine failure left a United Airlines DC-10 with almost no control, culminating in the death of 111 out of the 296 people on board during an attempted landing at Sioux City, Iowa.

U.S. investigators cited a defective titanium alloy part and weak inspection procedures, although they also praised the “highly commendable” performance of the crew of flight 232.

The July 1989 crash sped up improvements in manufacturing methods for titanium alloy. Experts say hidden internal defects in such parts are unusual but remain difficult to detect.

Titanium alloy is used widely in aerospace, which is the metal’s biggest customer due to its strength compared to the weight of each part and its ability to handle high temperatures.

(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta and Elaine Hardcastle)

Airbus Closes In On Air France Jetliner Deal

LONDON (Reuters) – Airbus is close to a deal worth billions of dollars to sell dozens of A320neo-family and smaller A220 aircraft to Air France as the French network carries out a keenly awaited renewal of its medium-haul fleet, industry sources said.

The deal could include as many as 50-70 Canadian-designed A220 jets, formerly known as CSeries, to replace Air France’s ageing fleet of roughly 50 A318 and A319 aircraft, they said.

Air France is also expected to pick the A320neo family to replace approximately 40 earlier versions of the Airbus A320 that are up to 18 years old.

A spokeswoman for Franco-Dutch parent Air France-KLM said: “Air France is pursuing work on its medium-haul fleet renewal. No decision has been taken at this stage.”

Airbus declined to comment on the deal, which is expected to be formally discussed at an end-month Air France-KLM board meeting.

The expected deal marks a rebound for Airbus after rival Boeing poached part of the fleet of British Airways owner IAG at last month’s Paris Airshow.

That deal caught Airbus off guard, though in the longer term sources say it may also have eased the European planemaker’s anxieties over the grounding of Boeing’s 737 MAX following the Ethiopian Airlines crash in March.

Airbus privately hopes the MAX will survive the crisis to avoid a costly race to develop all-new aircraft and to ease the prospect of a radical change in certification rules.

The anticipated Air France deal also illustrates Airbus’s recent deliberate effort to boost A220 sales by packaging deals together with its benchmark A320, industry sources said.

Airbus bought the loss-making A220 programme from Canada’s Bombardier last year and immediately began offering it to customers that already have other Airbus aircraft, allowing it to juggle prices and ancillary services across the fleet.

Air France-KLM, formed from a merger of French and Dutch flag carriers in 2004, continues to operate a mixed fleet between its two main national networks.

KLM last month provisionally became the first major European customer for the newly certified E195-E2 offered by A220 rival Embraer of Brazil, whose commercial aerospace arm is being acquired by Boeing.

KLM signed a letter of intent for 15 of the upgraded aircraft and options for another 20.

The Dutch carrier and Franco-Dutch low-cost subsidiary Transavia both operate the Boeing 737 family.

(Additional reporting by Laurence Frost; Editing by Geert de Clercq and Luke Baker)

Airbus Mimics Nature With ‘Bird of Prey’ Concept Plane

An Airbus concept aircraft with a wing design inspired by nature, dubbed Bird of Prey, is displayed at the Royal International Air Tattoo at Raf Fairford, near Fairford

RAF FAIRFORD, England (Reuters) – Airbus <EADSY> on Friday unveiled a concept aircraft with splayed wingtips and a fanned tail inspired by the feathers of an eagle as it experiments with “biomimicry” technology that could eventually lead to quieter landings and less pollution.

The European planemaker’s UK subsidiary sought to capture the imagination of future engineers by showing off a model of the raptor-like airliner at a military air show in England.

The propeller-driven aircraft would have individually controlled “feathers” on the wingtips to provide what Airbus calls “active flight control” used by an eagle or a falcon.

Also evident is the absence of a traditional vertical tail, relying instead on a split, wedge-shaped tail to reduce drag.

The regional aircraft would carry as many as 80 passengers up to 1,500 kilometres (930 miles) and burn 30% to 50% less fuel than today’s equivalent planes, Airbus said.

Inaugurating the display to curious military chiefs and visitors to the Royal International Air Tattoo, Britain’s Trade Secretary Liam Fox said it highlighted Britain’s technical capability and its attractiveness as a place to invest.

Airbus said its concept plane would have a geodesic or curved fuselage in a throwback to the contours of the Wellington bomber designed by British aircraft designer Barnes Wallis.

That aircraft was built in Broughton in Wales from the 1930s to keep it beyond the range of German bombers.

Airbus now uses the same site to produce wings for over 800 jetliners a year. But it has warned the plant faces competition from European nations such as Germany, or others such as Korea, for future generations following Britain’s decision to leave the European Union. Brexit supporters are sceptical Airbus would take such a step given Britain’s experience with wingmaking.

(Reporting by Tim Hepher; Editing by Tom Brown)

Jaguar Land Rover to Build Electric Cars at UK Plant

LONDON (Reuters) – Jaguar Land Rover (TAMO.NS) is making a multi-million pound investment to build electric vehicles in Britain, in a major boost for the UK government and a sector hit by the slump in diesel sales and Brexit uncertainty.

Britain’s biggest car company, which built 30 percent of the UK’s 1.5 million cars last year, will make a range of electrified vehicles at its Castle Bromwich plant in central England, beginning with its luxury sedan, the XJ.

“The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK,” Chief Executive Ralf Speth said on Friday.

The announcement gives a boost to Britain’s automotive sector hit this year by Honda and Ford’s (F.N) plans to close factories.

Jaguar Land Rover (JLR) has highlighted the dangers of a no-deal Brexit and the need to maintain frictionless trade with the European Union, echoing warnings from the industry that just-in-time production could be hit by customs delays and additional bureaucracy.

But it has signed a deal with workers at the Castle Bromwich factory to go from a five-day to a four-day working week with the same amount of hours which should allow the plant to operate more efficiently.

Three of JLR’s four European car plants are in Britain, giving it limited capacity elsewhere on the continent.

The other, in Slovakia, only opened last year and is still being ramped up with other models allocated there.

“We are making this investment because the ongoing Brexit uncertainty has left us with no choice, we had to act, for our employees and our business,” JLR said.

“We are committed to the UK as our home and will fight to stay here but we need the right deal.”

Both candidates to replace Prime Minister Theresa May, Boris Johnson and Jeremy Hunt, have both said they are prepared to take Britain out of the EU on Oct. 31 without a deal, although it is not their preferred option.

Brexiteers have argued that the EU’s biggest economy Germany, which exports hundreds of thousands of cars to Britain ever year, would do its utmost to protect that trade

Friday’s announcement comes after a turbulent few months for Jaguar which announced around 4,500 job cuts earlier in January and posted a 3.66 billion pound ($4.5 billion) loss in 2018/19.

The carmaker is undergoing a turnaround designed to offer an electrified option to all of its new models from 2020 as it seeks to move away from its reliance on diesel vehicles which are being increasingly shunned by buyers.

Jaguar also called on the government to bring giga-scale battery production to the country so that Britain is not left behind in the rush to produce low and zero-emissions vehicles and technology.

Britain’s business minister Greg Clark said the government was doing all it can to meet that goal.

“We are determined to realize that ambition,” he said.

($1 = 0.7952 pounds)

Reporting by Costas Pitas; editing by Michael Holden and Jane Merriman

FILE PHOTO – A car hangs on the wall of Jaguar’s Castle Bromwich manufacturing facility in Birmingham, Britain, November 17, 2016. REUTERS/Darren Staples

Bombardier Preferred Bidder for €3 billion Cairo Monorail

  • Two new monorail lines to connect East Cairo with New Administrative City and 6th October City to Giza

Bombardier Transportation has been named preferred bidder to build and supply a new monorail system in Cairo, Egypt.

The potential value of the bid for Bombardier Transportation is €1.2 billion ($1.3 billion US) for the Design & Build Contract. In addition, there is a 15 + 15 years Operations and Maintenance deal with a potential value of about €1.1 billion ($1.2 billion US). The rolling stock part of the order will be developed and built in Derby, UK.

The project is for the delivery of a 54km monorail system connecting the New Administrative City with East Cairo as well as a second 42km line connecting 6th October City with Giza. Bombardier Transportation will deliver the project in partnership with two Egyptian companies Orascom Construction and the Arab Contractors.

The order award is subject to contract and final confirmation.

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