The International Airfreight Capacity agreement with the Ministry of Transport will allow exporters and importers the ability to access key markets in a world where available air freight capacity is reduced due to the COVID-19 pandemic.
Air New Zealand General Manager Cargo Rick Nelson says cargo customers will be able to access capacity across Air New Zealand’s traditional network, with a handful of exceptions.
“The new agreement means Air New Zealand can publish scheduled cargo services into key markets which will allow freight forwarders, exporters and importers to plan and operate their logistics supply chains with certainty.
“We are working to offer connectivity to and from the United Kingdom and Europe, as well as Houston and Chicago via Los Angeles and San Francisco, Hong Kong and Narita gateways.
“This agreement will add significant value to New Zealand’s air cargo community, and we encourage the New Zealand forwarding, export and import communities to get behind these cargo options. Naturally, we hope the need to operate under an agreement of this nature will be a short-term business model and in time we’ll be able to revert to our traditional model as demand for passenger travel begins to pick up.”
Ports the airline will not operate cargo flights to under the agreement are London and Buenos Aires. Singapore is also not included in the initial phase.
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)
WASHINGTON – Amtrak announced that it has named William J. Flynn as its next Chief Executive Officer and President. Flynn, a seasoned business leader with four decades of transportation and logistics experience, will begin his role on April 15, 2020. Flynn succeeds Richard Anderson, who joined Amtrak as CEO in July 2017. Anderson, who fulfills his three-year commitment to the company this year, will remain with Amtrak through the end of the year as a senior advisor to Flynn.
Flynn, 66, has been a successful leader across multiple modes of transportation, including rail, maritime and aviation. Most recently, he served 13 years with Atlas Air Worldwide Holdings, Inc., which serves the global air freight, military charter and passenger charter markets, as President and CEO and Board Chairman. He also held senior roles with CSX Transportation, Sea-Land Services, Inc., and GeoLogistics Corp.
“Bill is the right executive to lead us into the future,” said Amtrak Board Chairman Tony Coscia. “We’ve never been stronger as a company than we are today. We are modernizing the customer experience and delivering our service to more people. Bill has a consistent track record of growing and improving complex transportation businesses. We are confident he will build upon the strong foundation of record-setting growth and improvement set by the Board, Richard and the entire Amtrak team.”
In fiscal year 2019, Amtrak set new records in ridership, revenue and earnings. In 2020, Amtrak is on pace to achieve operational breakeven for the first time in the company’s 49-year history. Additionally, Amtrak is investing billions in capital assets and is undertaking the largest fleet renewal in company history, with new high-speed Acela trains entering service on the Northeast Corridor next year.
“Amtrak’s future is incredibly bright and I’m excited to join the team,” said Flynn. “Amtrak service is vital to millions of Americans across the nation and by improving the customer experience, driving safety, and strengthening our partnership with states and other stakeholders, we can do much more for the American people. Tony, Richard and Amtrak’s dedicated employees have done an amazing job modernizing the company for the 21st Century. It’s a privilege to join them in continuing this work and advancing something as important as Amtrak’s mission.”
“I congratulate the Board on selecting Bill to lead Amtrak into its 50th year and beyond,” said Anderson. “Bill brings deep expertise across all aspects of transportation and a true passion for the customer. As the company refleets our equipment, expands our services and advances key infrastructure projects like the Gateway Program, it will require the steady leadership and relentless drive for improvement that I know Bill can provide.”
First delivery of 2020 batch accomplished, recent 777F touched down at its operational home base Cincinnati last Thursday
DHL continues strengthening its intercontinental network by renewal of its long-haul aircraft fleet
State-of-the-art aircraft also supports the Group’s goal of improving its carbon footprint
DHL Express, the world’s leading international express service provider, is receiving six new Boeing 777F-200 cargo aircraft this year. The first of these planes to come in 2020 landed last Thursday at its future base of operations, the Cincinnati/Northern Kentucky International Airport (CVG). In 2018 DHL ordered 14 new Boeing 777F, with four delivered in 2019, six to come this year and the remaining four to be taken into service in 2021. The current freighter will be operated by DHL Express’ partner airline Kalitta. The renewal is part of the overall modernization of the long-haul intercontinental fleet of the courier company and replaces older planes. The Boeing 777F is equipped with top-of-the-line fuel-efficient technology and features the longest range at full payload of any widebody freighter aircraft. This allows DHL to operate with higher efficiency while meeting the increasing global demand for express logistics service.
“We’re excited to welcome more Boeing 777Fs to the DHL Express family this year,” says John Pearson, CEO of DHL Express. “With the modernization of our intercontinental fleet, we can simultaneously enhance our proven ability to meet growing demand, improve our environmental footprint and deliver best quality service to our customers. DHL has made its mark time and time again with innovative solutions and technologies. We are pleased to continue demonstrating to partners and customers alike how these advancements stand to elevate the entire express logistics industry while bringing us closer to achieving our Strategy 2025 goals.”
In the center of its Strategy 2025 DHL Express focusses particularly on ‘E-commerce’ as a growth driver and ‘efficiency’ for further increasing its profit. With a payload capacity of 102 tons and a range of 9,200 km, the B777F has the largest capacity and range of all twin-engine freighter aircraft. They are also more fuel-efficient, reliable than older planes and reducing CO2 emissions by 18 per cent. DHL Express operates over 260 dedicated aircraft with 17 partner airlines on over 3.000 daily flights across 220 countries and territories.
“We expect further growth in cross-border e-commerce trade and, as a result, increased demand for our express logistics services and expertise in intercontinental deliveries,” says Travis Cobb, EVP Global Network Operations and Aviation at DHL Express. “With the new Boeing 777Fs, we can increase our intercontinental connections while reducing carbon emissions and fuel consumption. This enables us to continue to provide customers with the excellent quality they’ve come to expect from us while we work to expand our global services.”
LONDON/FRANKFURT, Feb 5 (Reuters) – China’s HNA Group is resuming efforts to find a buyer for airport luggage handler Swissport despite facing a loss of several hundred million dollars on its initial $2.8 billion investment, four sources familiar with the matter told Reuters.
The Chinese conglomerate has rekindled talks with several heavyweight investment funds as it needs to raise cash to cut its debts, the sources said.
Rothschild is helping HNA identify prospective bidders, who are hoping to buy the Zurich-based business on the cheap after previous attempts to sell it stalled last year, the sources said, speaking on condition of anonymity because the process is not public.
U.S. buyout funds Apollo Global Management Inc and Cerberus as well as Canadian asset manager Brookfield have come forward to revisit a possible acquisition of Swissport, the sources said.
Two other U.S. investors – Bain Capital and Centerbridge Partners – are also looking to take part in a new auction, two of the sources said, adding interest from industry buyers had waned.
HNA is hoping to limit its losses and recoup at least $2.3 billion from the sale, one of the sources said.
But offers are expected to value Swissport at about $2 billion, two of the sources said, with one adding Apollo had previously offered $2.1 billion.
This means HNA may need to swallow a loss of more than $500 million to offload the business, which has annual core earnings of about $270 million, they said.
HNA, Apollo, Cerberus, Brookfield and Bain declined to comment, while Centerbridge was not available.
HNA bought Swissport for 2.7 billion Swiss francs ($2.8 billion) in 2016 in a deal that was meant to complement its sprawling portfolio of investments in aviation, logistics and tourism.
But the Chinese giant had to look into cashing out at the start of 2018 when its liquidity challenges turned it into one of China’s most indebted companies and forced it to quickly sell assets.
The 20-year old company, led by chairman Chen Feng, came under pressure after embarking on an aggressive M&A spree in the United States and Europe with deals worth an overall $50 billion.
It made a push into the travel and tourism industry, buying a 25% stake in Hilton Worldwide Holdings Inc in 2016 and then branched out into financial services, becoming the leading investor in Deutsche Bank.
But its M&A binge resulted in cash flow problems, prompting a review of all its business interests overseas.
HNA initially considered a possible listing of Swissport on the Swiss SIX Exchange in 2018, but then opted for an outright sale.
Apollo and Cerberus, which bought Paris-based Worldwide Flight Services (WFS) in 2018, were both initial contenders for Swissport, but negotiations stalled after the Swiss company secured a refinancing package in August.
($1 = 0.9727 Swiss francs)
(Reporting By Pamela Barbaglia and Clara Denina in London and Arno Schuetze in Frankfurt; Editing by Mark Potter)
China Southern Airlines Airbus commercial passenger aircraft is pictured in Colomiers near Toulouse
BEIJING (Reuters) – China Southern Air Holding, the parent of China Southern Airlines <ZNH>, has set up a cargo company with registered capital of 1 billion yuan ($143 million), as it looks to consolidate its air cargo assets through state-led reforms.
The move from December 24 was disclosed by a filing approved on the National Enterprise Credit Information Publicity System and comes as China prioritizes implementing mixed ownership reforms to revamp its bloated, debt-ridden state sector.
China Southern is among 96 centrally owned companies supervised by the state assets regulator, the State-owned Assets Supervision and Administration Commission (SASAC).
As such, China Southern Airlines would offload its old freight unit to the newly registered company, according to a statement from SASAC in October. The cargo company would also take over other air cargo assets under the parent company such as belly cargo services, cargo terminals and international logistics.
The cargo business would be managed in a market-oriented way and would become a major source of profits, said the SASAC.
The air cargo market, an economic bellwether linked to global trade, saw its traffic decline by 3.3% in 2019, the International Air Transport Association (IATA) said, driven by a tariff war between the United States and China.
In 2017, China Eastern Air Holding <CEA> sold almost half of its freight unit to four firms, while Air China <AIRYY> last year offloaded a majority stake in its cargo arm in face of market uncertainties.
($1 = 7.0016 Chinese yuan renminbi)
(Reporting by Stella Qiu and Brenda Goh; Editing by Gareth Jones)
Czech Republic becomes first international customer to purchase mixed fleet of H-1 aircraft
WASHINGTON D.C. (Dec. 13, 2019) – The U.S. Secretary of Defense, Mark Esper, and Czech Republic Minister of Defence, Lubomir Metnar, signed a Letter of Offer and Acceptance finalizing the foreign military sale by Bell Textron Inc., a Textron Inc. (TXT) company, of H-1 helicopters to the Czech Air Force.
“We are privileged to support the Czech people and applaud the Ministry of Defence and Armed Forces of the Czech Republic for selecting AH-1Z and UH-1Y helicopters.” said Vince Tobin, Executive Vice President of Bell’s Military Business.
The H-1 mixed fleet shares 85-percent commonality between parts, reducing the logistics, maintenance, and training costs of the AH-1Z and UY-1Y helicopters while offering a lethal combination of integrated weapons systems to counter ground, air, and maritime targets effectively. The AH-1Z is the only helicopter in production equipped with the AIM-9 Sidewinder providing the most advanced air-to-air combat capabilities.
“This mix allows the Czech Republic to accomplish a diverse mission set, from humanitarian assistance and disaster relief to close air support and air-to-air warfare,” said Joel Best, Director of Military Sales and Strategy, Europe. “The advanced capabilities of the H-1 program help ensure the safety and security of Czech sons and daughters for years to come.”
The purchase of four AH-1Z and eight UH-1Y military helicopters represents the first foreign military sale of a mixed H-1 fleet. Bell anticipates the delivery of the first H-1 aircraft to the Czech Republic will begin in 2023 and complete delivery by 2024.
FILE PHOTO: A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California
CHICAGO (Reuters) – Boeing Co <BA> this week will present to the board of its largest 737 MAX customer, Southwest Airlines Co <LUV>, an overview of its plans to return the grounded jet to service, a spokesman for the airline said on Monday.
The meeting on Wednesday and Thursday comes after Southwest Chief Executive Gary Kelly said last month that the airline could look next year at diversifying its fleet beyond Boeing 737 aircraft. Budget-friendly Southwest has structured its business model around flying only 737 aircraft for the past 50 years and bet its entire growth strategy on the 737 MAX, the latest iteration of Boeing’s narrowbody workhorse.
With the MAX parked since mid-March following crashes on Lion Air and Ethiopian Airlines that together killed 346 people, Southwest has had to scale back its growth plans and cancel north of 100 daily flights, wiping $435 million from its earnings between January and September.
Kelly, who is also Southwest’s chairman of the board, invited Boeing to address the timing and logistics of dozens of 737 MAX deliveries that it was supposed to receive this year. The meeting will also give Boeing a chance to defend its product and the steps it is taking to restore public confidence after the two fatal crashes, sources said.
“It’s an overview of the Return to Service Plan, timing, and plans moving forward,” Southwest spokesman Chris Mainz said. “Just a good chance for our Board to hear directly from Boeing, but nothing more to it than that.”
It is not the first time that Boeing has presented to a regularly scheduled board meeting, he said.
Southwest had 34 MAX jets in its fleet when global regulators grounded the aircraft in March. The airline was supposed to receive 41 more 737 MAX planes before the end of the year, but most of those deliveries are now scheduled for 2020.
Hundreds of undelivered 737 MAX jets are parked at Boeing facilities in Washington state, where the planemaker is facing a delivery logjam once the U.S. Federal Aviation Administration gives approval for them to fly commercially.
While Boeing is targeting approval in December, the FAA has pushed back on any fixed timeline.
Southwest has removed the 737 MAX from its flying schedule until early March. The airline has said it will need one to two months to train its pilots and prepare the jets for flight once regulators approve new software and pilot training.
(Reporting by Tracy Rucinski in Chicago; Additional reporting by Tim Hepher in Dubai; Editing by Matthew Lewis)
WEst Palm beach, Fla., Oct. 11, 2019 – Sikorsky, a Lockheed Martin company (NYSE: LMT), showcased the next generation Combat Rescue Helicopter (CRH) during a ceremony at its Development Flight Center in West Palm Beach, Florida, this week.
During the event, United States Air Force General James M. Holmes, Commander, Air Combat Command, Joint Base Langley-Eustis, Virginia (91) described the HH-60W helicopter as critical took for the warfighter.
“I want to say thanks to everyone from Sikorsky for your dedication to your craft, for consistently living up to your mission statement of pioneering flight solutions that bring people home everywhere every time. And that partnership is incredibly valuable to us and the guys on the ground,” Gen. Holmes said. “We’re proud to work with you to deliver the most intuitive, precise, technologically advanced systems to our airmen.”
Other dignitaries attending the event included Dr. Will Roper, Assistant Secretary of the Air Force for Acquisition, Technology and Logistics and Rep. Brian Mast (R-FL) from Florida’s 18th District.
Prepared for Production
The achievement of the Milestone C production decision on Sept. 24 launched the contract award known as Low Rate Initial Production for Sikorsky to build 10 CRH helicopters.
The U.S. Air Force program of record calls for 113 helicopters to replace the HH-60G PAVE HAWK™, which perform critical combat search and rescue and personnel recovery operations for all U.S. military services.
“The Combat Rescue Helicopter is the new era in Air Force aviation and a pivotal milestone that ties to our company’s legacy of bringing people home,” said Sikorsky President Dan Schultz. “Sikorsky employees and our nationwide supply chain are ready to begin producing, delivering and supporting this all-new aircraft for the warfighter.”
The HH-60W Combat Rescue Helicopter is significantly more capable and reliable than its predecessor, the HH-60G.The aircraft hosts a new fuel system that nearly doubles the capacity of the internal tank on a UH-60M BLACK HAWK®, giving the Air Force crew extended range and more capability to rescue those injured in the battle space. The HH-60W specification drives more capable defensive systems, vulnerability reduction, hover performance, electrical capacity, avionics, cooling, weapons, cyber-security, environmental and net-centric requirements than currently held by the HH-60G.
“We send in brave men and women who are going to find a way to get the job done,” Dr. Roper said. “But they’ll tell you about flying in and not being certain that they could land safely or putting the broad side of their vehicle between a downed pilot and gunfire. When you hear those stories, you realize that we put heroes on these vehicles. We pick up heroes in these vehicles and they deserve every technology advantage we can give them.”
Training Systems
On Sept. 19, four pilots and four special mission aviators from the U.S. Air Force graduated from the Sikorsky Training Academy’s S-70i Transition Course. As previously qualified HH-60G Pave Hawk crews, the students learned about the unique systems and operating capabilities of the Sikorsky S-70i. During the four-week course, they each spent seven hours using a procedural trainer, 10 hours in a full-motion flight simulator and 10 hours of flight time in the S-70i aircraft.
To ensure mission readiness, Lockheed Martin will deliver a custom-tailored training system consisting of flight simulators, procedural and maintenance trainers and accompanying courseware.
In 2020, Lockheed Martin will train 200 U.S. Air Force and maintenance aircrew students at our Sikorsky Training Academy in Stuart, Fla. utilizing training systems and three newly built HH-60W aircraft. This will provide flight and maintenance training to initial cadre and units allowing the U.S. Air Force to remain vigilant while simultaneously fielding and employing the added capabilities of the HH-60W aircraft.
The Sikorsky HH-60W helicopter at the Development Flight Center in West Palm Beach, Florida. Photo courtesy Sikorsky, a Lockheed Martin company.
Saab has signed a contract with the Finnish Defence Forces Logistics Command, and received an order to provide and integrate the combat system for the Finnish Navy’s new Pohjanmaa-class corvettes within the Squadron 2020 programme.
This follows the previously announced selection on 19 September. The order value is 412 million Euro and the contract period is 2019-2027. The Finnish shipyard RMC Defence will build the Finnish Navy’s four new corvettes, with construction 2022 to 2025. The corvettes will be fully operational by 2028.
“We are proud that Finland has chosen Saab as combat system provider and integrator for their new corvettes. Saab has a long history in Finland and the Squadron 2020 contract means that we will increase our footprint in and deepen our relationship with Finland for many years to come”, says Micael Johansson, Senior Executive Vice President and Deputy CEO at Saab.
The contract includes, among other things, Saab’s Combat Management System (9LV) and Saab’s radars Sea Giraffe 4A Fixed Face and Sea Giraffe 1X. The communication system TactiCall as well as the remote weapon station Trackfire, are also included in the contract.
“This is going to be the world’s most modern and advanced corvettes, with state of the art technology and capabilities, including the 9LV Combat Management System and the integrated mast featuring Saab’s sophisticated Sea Giraffe 4A Fixed Face radar and the Sea Giraffe 1X radar”, continues Micael Johansson.
Saab will carry out the work in Sweden, Finland, Denmark, Australia and South Africa.
