MILAN (Reuters) – Delta Air Lines <DAL> could pull out of a consortium looking to rescue Italy’s Alitalia as it is unwilling to enter a possible bidding war with Lufthansa <DLAKY>, newspaper Il Corriere della Sera reported on Sunday, citing two sources.
Delta is expected to say it will not raise its offer to invest about 100 million euros ($112 million) in Alitalia in a letter to be sent in the middle of this week to its consortium partners, Italy’s state railways firm Ferrovie and infrastructure group Atlantia, Il Corriere reported.
It said the rough investment figure could go as high as 120 million euros.
But Germany’s Lufthansa might invest about 150 million euros, Il Corriere said.
Lufthansa is seeking up to 6,000 job cuts, however, versus 2,500 envisaged by a plan drafted by the Delta consortium, the newspaper reported.
A source said last week Lufthansa was ready to invest up to 200 million euros in Alitalia which is running out of cash and scrambling to find new funds.
Italy’s industry ministry has extended to Nov. 21 a deadline for binding bids after an Oct. 15 deadline passed without an agreement among potential rescuers.
Alitalia’s temporary administrators said last month that the company’s liquidity amounted to 310 million euros at the end of September.
But that figure was inflated by advanced payments on pre-paid tickets, Sunday’s Il Sole 24Ore newspaper reported, citing unidentified sources.
The report added that adjusted for future costs, the cash amounted to just 160 million euros, and that it would run out in December.
($1 = 0.8957 euros)
(Reporting by Giulio Piovaccari; editing by Jason Neely)
PARIS/ZURICH (Reuters) – U.S. engine maker Pratt & Whitney faces new checks on engines for small jetliners after an engine failure forced a Geneva-bound Swiss jet to divert to Paris and prompted a brief grounding of the rest of the airline’s Airbus A220 fleet.
French air crash investigators classified the problem that disrupted the Swiss flight shortly after departure from London Heathrow on Tuesday as a “serious incident” and said it would be investigated by the U.S. National Transportation Safety Board.
It was the third engine incident involving the same airline and model of jet in as many months and resulted in a small amount of debris being scattered as the aircraft landed at Paris Charles de Gaulle, an airport source told Reuters.
It came just hours after France’s BEA agency launched an unusual appeal for 150 volunteers to scour an uninhabited wood in eastern France for a titanium engine part dating from the first blowout in July, which affected a Geneva-London flight.
A second incident in September caused a Swiss A220 to divert to Geneva, but on that occasion the engine’s housing contained fragments torn loose from the engine, the BEA said.
Swiss, owned by Germany’s Lufthansa <DLAKY>, said after Tuesday’s incident it had initially grounded its fleet of Airbus <EADSY> A220 jets for a “comprehensive inspection” of their engines.
Late on Tuesday, it said the first aircraft had already returned to service but that the inspections had forced it to cancel 100 flights, affecting 10,000 passengers.
Operations are expected to return to normal from Thursday.
ADDITIONAL CHECKS
Tuesday’s incident highlighted scrutiny of the performance of new-generation Geared Turbofan engines developed by Pratt & Whitney, a unit of United Technologies Corp <UTX>.
A spokesman for the engine maker said it was recommending additional checks for versions of the engine that power the Airbus A220 – an engine known as the PW1500G – and a rival Brazilian jet, the Embraer 190/195-E2.
A similar engine for the larger A320neo family, Airbus’ most-sold aircraft, was not affected.
“Pratt & Whitney and our airframe OEMs (manufacturers), working in coordination with the regulatory authorities, have recommended additional inspections of the low-pressure compressor for PW1500G and PW1900G engines to keep the fleet operational,” a spokesman said.
“The engines continue to meet all criteria for continued airworthiness. We are working closely with our customers to minimise disruption to their operations.”
Prompted by the earlier incidents in July and September, the U.S. Federal Aviation Administration ordered inspections on the same engine part in A220s and some Embraer jets in September.
On Tuesday, Delta Air Lines <DAL> said its A220 jets were flying as normal.
Air Baltic, which also flies the A220, said it was closely following Pratt’s latest recommendations but that it used a different version of the PW1500G engine from Swiss.
A total of 90 of the 110-130-seat A220 aircraft have been delivered, initially by Canada’s Bombardier <BDRBF> which designed the carbon-fibre jet, and later by Airbus, which bought the loss-making programme last year.
Airbus said it was working with Pratt & Whitneyand would co-operate with any investigation.
In Brazil, Embraer <ERJ> had no immediate comment.
The company uses Pratt’s PW1900G engine in larger versions of its upgraded 80-120-seat E2 jets.
It has delivered six E190-E2 planes split between Norwegian carrier Wideroe and lessor Aercap <AER>, and one E195-E2, which is not yet in commercial service but has been delivered to Brazilian airline Azul SA <AZUL>.
Azul said its operations were not affected.
(Reporting by Tim Hepher in Paris, Tracy Rucinski in Chicago, John Revill in Zurich, Michael Shields in Vienna, Marcelo Rochabrun in Sao Paulo, Allison Lampert in Montreal, Laurence Frost in Paris; Editing by Jane Merriman and Matthew Lewis)
MILAN, Oct 14 (Reuters) – Alitalia is set to win a temporary lifeline on Tuesday, when its latest rescue deadline expires, with toll road operator Atlantia expected to give a conditional green light to hundreds of millions of euros of investment, according to two people close to the situation.
The future of the troubled Italian carrier remains in doubt with no binding offer and no clear business plan in sight but it should avoid an immediate liquidation after the expiry of the Oct. 15 deadline set by the industry ministry.
Atlantia, which is controlled by Benetton family, has been in talks since July over taking part in a government-orchestrated rescue of the airline, together with railway group Ferrovie dello Stato, the treasury and Delta Air Lines.
“Atlantia is expected to give its commitment to invest in Alitalia subject to several conditions,” one of the sources said. But issues that still cause concern range from potential antitrust problems, treatment of state aid under European Union rules, the cost of possible redundancies and the future of the carrier’s long-haul routes, the source said.
Oct. 15 is the latest in a series of deadlines set for Ferrovie and potential partners in a rescue for Alitalia, which has been under special administrators since May 2017 and needs new funds to continue flying.
The board of Atlantia, which runs Rome’s airports through its Aeroporti di Roma unit, is expected to approve a preliminary commitment to the Alitalia rescue on Tuesday, the sources said.
The rescue plans include potential investment of a total of around 1 billion euros in the carrier, which has cut costs under the special administrators but still burns cash and had only 310 million euros left at the end of September.
Atlantia is expected to invest some 300 million euros, depending on commitments from other partners.
A second source said more time was needed to iron out a complete business plan for Alitalia. Possible involvement by Delta Air Lines or Germany’s Lufthansa AG is still under discussion.
A third source said Atlantia, Ferrovie and other potential partners were under pressure from Italy’s Industry Ministry to present a binding bid and take control of the carrier which in the past two years has already received 900 million euros from the state to stay afloat.
Atlantia’s participation in the rescue was put in doubt this month when it wrote to the Industry ministry, urging a radical overhaul of the Alitalia plan if talks were to go ahead.
(Reporting by Francesca Landini, Stefano Bernabei, Giuseppe Fonte. Editing by Jane Merriman)
An Alitalia Airbus A320 takes off on September 26, 2017 from Toulouse-Blagnac airport in southwestern France. / AFP PHOTO / PASCAL PAVANI
Duluth, Minn. & Knoxville, Tenn. – Cirrus Aircraft has announced the TRAC Series, a purpose-built configuration of the best-selling SR Series line of aircraft developed specifically for flight training institutions. The TRAC Series is thoughtfully crafted with reliability, durability and economy in mind to meet the rigors of high-tempo flight operations, while providing industry-leading safety and performance for both the pilot trainee and flight instructor. Combining the Perspective+TM by Garmin® flight deck along with the unrivaled performance and safety uniquely found in the SR Series, the TRAC Series includes tailored features such as rear seat push-to-talk functionality and a landing gear simulator aimed at increasing training productivity.
“Our commitment to flight training goes far beyond innovation in aircraft design to include a unique approach to attracting and training future generations of aviators,” said Zean Nielsen, CEO at Cirrus Aircraft. “The TRAC Series delivers a 21st century solution for world-class, forward-thinking flight training institutions.”
Designed to be the ultimate training platform, the technologically-advanced TRAC Series boasts an impressive list of features and capabilities that complement the aircraft’s stable flight characteristics. The integrated Perspective+ flight deck includes two large flight displays, a Flight Management System (FMS) keypad controller, an Electronic Stability and Protection system, as well as integrated engine indication and crew alerting/warning systems – all features found on today’s advanced airliners.
“Premier flight programs around the world continue to select Cirrus Aircraft for their training fleets,” said David Moser, Vice President of Fleet & Special Mission Aircraft Sales at Cirrus Aircraft. “These partnerships have been instrumental in our development of the technologically-advanced, cost-effective TRAC platform designed exclusively for leading flight academies and universities across the globe.”
Cirrus Aircraft has redesigned the interior to meet the unique needs of a high-utilization training environment, replacing the luxury materials found in the SR Series with a durable all-weather floor liner and easy to clean wear-resistant seats. The spacious cabin provides an optimal workspace to learn and train, with more space than typical training aircraft, rear seats for additional students or observers and optional air conditioning for comfort in all seasons.
The TRAC SR20 comes equipped with a modern Lycoming IO-390, 215HP power plant, providing reliability and efficiency for up to 2,400 hours before overhaul, and features a durable all-composite airframe structure with the signature Cirrus Airframe Parachute System® (CAPS®), making the TRAC Series one of the safest and most versatile training airplanes available today. The TRAC Series is further enhanced by a wide array of interactive, tailored flight training content through Cirrus ApproachTM, including online courses, engaging videos and the award-winning iFOM (interactive Flight Operations Manual) for convenient learning anywhere in the world.
With the TRAC Series, Cirrus Aircraft is poised to expand an already impressive list of world-class flight training programs around the globe that operate fleets of Cirrus aircraft, including Emirates Airline, Lufthansa Aviation Training, the United States Air Force Academy, Airbus Flight Academy, Western Michigan University, Oklahoma State University, Japan Civil Aviation College, the Royal Saudi Air Force and many more.
The Italian government is begging U.S. major Delta Air Lines, Inc. (NYSE: DAL) to up the proposed acquisition of a 10% stake in Alitalia for $100 million to at least 15%, according to a report in Italian media.
Loss-making Alitalia has been seeking new investors for more than two years after going into administration in May 2017 after workers rejected a plan to cut jobs and salaries. Successive Italian governments have had to balance the carrier’s massive losses with the need to placate a heavily unionized workforce.
Number of passengers rises by 2.9 percent year-on-year
Capacity utilisation up by 0.8 percentage points to 87.2 percent
Strongest passenger growth at Zurich hub
In August 2019, the Lufthansa Group airlines welcomed more than 14.1 million passengers. This shows an increase of 2.9 percent compared to the previous year’s month. The available seat kilometres were up 1.8 percent over the previous year, at the same time, sales increased by 2.7 percent. In addition as compared to August 2018, the seat load factor rose by 0.8 percentage points to 87.2 percent.
Cargo capacity increased by 8.9 percent year-on-year, while cargo sales increased by 1.5 percent in revenue tonne-kilometre terms. As a result, the Cargo load factor showed a corresponding reduction, decreasing by 4.2 percentage points to 58.8 percent.
Network Airlines with around 10.2 million passengers
The Network Airlines including Lufthansa German Airlines, SWISS and Austrian Airlines carried around 10.2 million passengers in August – 3.3 percent more than in the prior-year period. Compared to the previous year, the available seat kilometres increased by 3.1 percent in August. The sales volume was up by 4.0 percent over the same period, with an increasing seat load factor by 0.7 percentage points to 87.3 percent.
Strongest passenger growth at Zurich hub
In August, the strongest passenger growth of the network airlines was recorded at the Zurich hub with 7.0 percent. The number of passengers increased by 4.7 percent in Vienna and by 4.5 percent in Munich. In Frankfurt the number of passengers on the contrary decreased by 0.9 percent. The underlying offer also changed to varying degrees: In Munich the offer increased by 12.1 percent, in Zurich by 2.6 percent and in Frankfurt by 0.3 percent. In Vienna the offer decreased by 1.0 percent.
Lufthansa German Airlines transported more than 6.6 million passengers in August, a 1.8 percent increase compared to the same month last year. A 4.0 percent increase in seat kilometres corresponds to a 4.8 percent increase in sales. The seat load factor rose by 0.7 percentage points to 86.8 percent.
Eurowings increases supply and sales on short-haul routes
Eurowings (including Brussels Airlines) carried around 3.9 million passengers in August. Among this total, around 3.6 million passengers were on short-haul flights and 309,000 flew on long-haul flights. This corresponds to an increase of 1.8 percent compared with the previous year, resulting from an increase of 2.8 per cent on short-haul flights and a reduction of 8.1 per cent on long-haul flights. A 3.5 percent decrease in capacity was offset by a 2.3 percent decrease in sales, resulting in an increase of seat load factor by 1.0 percentage points to 87.0 percent.
In August, the number of seat-kilometres offered on short-haul routes was increased by 1.5 per cent, while the number of seat-kilometres sold increased by 3.5 per cent over the same period. This results in a seat load factor of 87.1 per cent, which is 1.7 percentage points higher on these flights. On long-haul flights, the seat load factor decreased by 0.4 percentage points to 86.6 per cent over the same period. The 13.4 per cent decrease in capacity was offset by a 13.8 per cent decrease in sales.
German flag carrier Lufthansa and German national railway Deutsche Bahn have reached agreement on a long-festering dispute concerning an air cargo cartel.
The settlement was announced Aug. 26, although details are being kept confidential by mutual agreement.
The settlement ends a dispute before the Cologne regional court that has been ongoing since 2013.
Settling parties are DB Barnsdale, a wholly owned subsidiary of Deutsche Bahn, and Lufthansa Group member companies Lufthansa Cargo, Swiss International Air Lines and Deutsche Lufthansa.
CAIRO, July 20 (Reuters) – British Airways and Lufthansa abruptly suspended flights to Cairo from Saturday over security concerns, but giving no details about what may have prompted the move.
“We constantly review our security arrangements at all our airports around the world, and have suspended flights to Cairo for seven days as a precaution to allow for further assessment,” British Airways said in a statement.
Lufthansa later said it had cancelled its flights to Cairo on Saturday from Munich and Frankfurt and will resume its flights on Sunday
British Airways, a unit of IAG, also said that it would never operate an aircraft unless it was safe to do so. When asked for more details about why flights had been suspended and what security arrangements the airline was reviewing, a spokeswoman responded: “We never discuss matters of security.”
Three Egyptian airport security sources told Reuters that British staff had been checking security at Cairo airport on Wednesday and Thursday. They gave no further details.
The British Foreign Office updated its travel advisory on Saturday to add a reference to the British Airways’ suspension, advising travellers affected to contact the airline.
Egypt’s Ministry of Civil Aviation said in a statement late on Saturday that it had contacted the British Embassy in Cairo which had confirmed that the decision to suspend the flights was not issued by Britain’s transport or foreign ministries.
The Egyptian ministry added that it will add more flights from Cairo to London starting on Sunday “to facilitate transporting passengers during this period.”
The British government has long advised against all but essential travel by air to and from the Egyptian resort of Sharm el-Sheikh, where a Russian passenger jet was bombed in 2015, but has not issued similar warnings against air travel to and from Cairo.
“There’s a heightened risk of terrorism against aviation. Additional security measures are in place for flights departing from Egypt to the UK,” the British advisory says.
Tourism, a key source of foreign revenue for Egypt, has been recovering after tourist numbers dropped in the wake of a 2011 uprising and the 2015 bombing of the Russian jet, which killed all 224 people on board shortly after takeoff.
That attack, which was claimed by Islamic State, prompted Russia to halt all flights to Egypt for several years and a number of countries including Britain to cease flights to Sharm el Sheikh, which have yet to resume.
(Reporting by Lena Masri and Amina Ismail; editing by Peter Graff, Diane Craft and G Crosse)
World’s number one regional aircraft lessor and world’s number one regional aviation manufacturer sign landmark deal worth over US$ 2 billion
Strategic move from NAC to shape the future with the most eco-responsible and efficient regional aircraft
Paris-Le Bourget, 18 June, 2019 – Regional aircraft leasing specialist NAC and ATR, the world’s number one regional aircraft manufacturer, have today signed a Letter of Intent for 35 firm ATR -600s, with options for a further 35 and purchase rights for another 35. The deal represents a seal of long-term confidence from the number one regional aircraft lessor whose desire to focus on the most efficient and sustainable technology has led them to invest in the ATR 72-600. NAC’s recognition of the quality of the ATR programme also highlights the enduring retained asset value of the -600 series and its value proposition in the market.
Deliveries of the initial 35 aircraft will begin in 2020 and run up to 2025; the delivery schedule is optimised to ensure that market demand is best satisfied over the five-year period. This new deal cements a very successful and longstanding collaboration between NAC and ATR. Since 2010, over 100 speculative ATR aircraft orders were turned into deliveries to NAC.
NAC Chairman Martin Moller said: “To plan for a successful future, it is vital for us to invest in the very best technology, so that we can offer flexible and efficient solutions to our clients. The ATR72-600, with a significant fuel burn advantage drives lower costs and emissions making it the optimal choice for many of our clients. Aviation is moving towards a sustainable future and with this 100+ aircraft deal, we are making a strategic decision to ensure that airlines can lease and operate the most modern and eco-responsible regional aircraft available in the market.”
Stefano Bortoli, Chief Executive Officer of ATR commented: “We congratulate NAC on their forward-looking vision. It is a smart business move from NAC and one very much in line with the trends in regional aviation to connect communities and develop businesses across the globe in the most responsible and cost efficient way. To receive this order from the leading lessor in our segment, validates the value creation and quality of our product and its sustainable credentials and shows the efficiency of turboprop technology going forward. This deal clearly shows where the trend in regional aircraft is going.”
About Nordic Aviation Capital:
NAC is the industry’s leading regional aircraft lessor serving over 76 airline customers in 51 countries. The company provides aircraft to well-established carriers such as British Airways, Air Canada, LOT, Azul, Lufthansa, Garuda, Flybe, Aeroméxico and airBaltic as well as major regional carriers including Air Nostrum and Widerøe. NAC’s current fleet of almost 500 aircraft includes ATR 42, ATR 72, Bombardier Dash 8, CRJ900, CRJ1000, A220, E170, E175, E190 and E195.
About ATR:
ATR is the world number one regional aircraft manufacturer with its ATR 42 and 72 aircraft the best-selling aircraft in the less than 90-seat market segment. In 2018 the company had a turnover of US$1.8 billion. The unifying vision of the company’s 1,400 employees is to help everyone, no matter where they are in the world, to connect and develop in a responsible manner. Thanks to the efficiency of turboprop technology and the benefits of the company’s focus on continuous innovation, ATRs open more than 100 new routes every year, burn 40% less fuel and emit 40% less CO2 than regional jets. For all of these reasons, ATRs have been chosen by some 200 companies in 100 countries around the world. ATR is a joint-venture between Airbus and Leonardo.
LONDON (Reuters) – The chief executive of British Airways owner IAG ruled out bidding for Thomas Cook’s airline unit on Friday, a day after rival Virgin Atlantic was reported to be interested in part of the business.
Lufthansa and private equity fund Indigo Partners are seen among the front-runners for Thomas Cook’s airlines after the firm put it up for sale in February, to raise cash after a string of profit warnings in 2018.
IAG had previously been linked with the business, but on Friday, Chief Executive Willie Walsh said that his firm had not made a bid.
“In relation to Thomas Cook… we’re not putting in any bid,” Walsh told reporters.
He added in an analyst call later in the day that the firm was not actively pursuing M&A at the moment but was in a strong position to do so if something attractive came up.
Virgin Atlantic has put in a preliminary offer for the tour operator’s UK long-haul business, Sky News reported on Thursday. Thomas Cook and Virgin Atlantic both declined to comment on the report.
Lufthansa is a bidder for Thomas Cook’s German airline Condor with an option to acquire the remaining airlines of the British travel group, Lufthansa’s CEO said on Tuesday.
Indigo Partners is also a likely suitor for Thomas Cook’s airline business, sources said last week, adding that the deadline for initial bids was on Tuesday earlier this week.
An unexpectedly warm summer in northern Europe last year deterred holiday makers from booking lucrative last minute getaways, resulting in two major profit warnings for the world’s oldest travel company.
Worries about the firm’s ability to pay its debts pushed the yield on its euro-denominated bonds that mature in 2022 to a record high last Friday, and Thomas Cook said later in the day that it was in talks with its lenders about bolstering its finances.
Thomas Cook’s half-year earnings release for the six months to March 31 is due next Thursday.
(Reporting by Alistair Smout; Editing by Keith Weir)
