OSLO (Reuters) – The shares of Norwegian Air plunged by more than 60% on Tuesday as they resumed trade after the airline proposed a financial rescue package on April 8 that would significantly dilute existing equity.
If approved by creditors and shareholders, the plan would convert $4.3 billion of debt into equity, and also raise some new equity, wiping out much of the remaining value of the company’s current shares.
The budget carrier has grounded most of its fleet due to the impact of the COVID-19 outbreak on travel and on March 16 announced the temporary layoff of 7,300 staff, about 90% of its workforce.
Norwegian’s shares plunged 62.5% in early trade to an all-time low of 3.10 crowns, valuing the company at just 500 million Norwegian crowns ($48.8 million).
Norwegian was facing financial problems even before the coronavirus outbreak. Before Tuesday’s fall, its shares were down 78% this year, underperforming other major European airlines, which were down between 30% and 60%.
The airline must now convince its creditors to agree to the rescue plan before it is put to a shareholders’ vote on May 4.
The Oslo stock exchange said on Tuesday that trading in Norwegian’s shares would be subject to special observation until there was further clarification of the airline’s situation.
Special observation is used under circumstances that may make the valuation of a security particularly uncertain, according to the market operator’s guidelines.
($1 = 10.2490 Norwegian crowns)
(Reporting by Terje Solsvik, editing by Gwladys Fouche/Victoria Klesty/Susan Fenton)
Passengers board a Norwegian Air plane in Kirkenes, Norway
JetBlue (NASDAQ: JBLU) has issued the following message to its 23,000 crew members.
It has been a very tough few weeks. We are so proud to see once again how the JetBlue culture brings us together during times of crisis. Thank you for continuing to serve our Customers and deliver the JetBlue experience, particularly when your own lives are being disrupted in so many ways.
With safety our #1 value, we continue to take the measures necessary to protect your health. But as it relates to our business, we are not going to sugarcoat it. Demand continues to worsen, and the writing is on the wall that travel will not bounce back quickly.
We’d like to give you some color on what we are seeing. Last year on a typical day in March we took in about $22 million from bookings and ancillary fees. Throughout this March, our sales have fallen sharply and in the last several days we have taken in an average of less than $4 million per day while also issuing over $20 million per day of credits to Customers for canceled bookings. This is a stunning shift, which is being driven by fewer new bookings, much lower fares, and a Customer cancel rate more than 10 times the norm. If you do the math, $4 million per day does not come anywhere close to covering our daily expenses. It is hard to predict how long these conditions will last and how much more challenging the environment may become.
We are not alone. Virtually every major carrier is taking actions that were almost unthinkable a few weeks ago, making huge schedule reductions and parking significant portions of their fleets.
Even though we entered this from a position of strength with a strong balance sheet and cash in the bank, because of the dramatic fall-off in bookings, we need to reduce our spending immediately so that we can continue to fund JetBlue’s operations and ensure your jobs are protected. We have already announced an initial capacity reduction, pay cuts for our officers (VPs and above), voluntary time off programs, re-negotiated Business Partners agreements, and other spending reductions.
We’ve taken swift and decisive actions to protect you, but we must do more and do so quickly to weather this storm.
Reducing our flying to reflect demand We are reducing our capacity in the coming months, with a reduction of at least 40% in April and May. We also expect substantial cuts in June and July, and given the unpredictability of this event, we will ground some of our aircraft. We know this is not an easy move – it will impact hours for many frontline Crewmembers, but it is also essential that we reduce capacity in the face of dramatically falling demand.
We will be notifying Customers of their specific cancellations in a phased approach so that we do not overwhelm Customer Support as they continue to receive exponentially more calls than they ever have before.
Reviewing our fleet plan One of our most substantial capital expenses is the purchase of new airplanes. In collaboration with Airbus, we are looking at our order book for opportunities to slow deliveries and reduce aircraft pre-delivery payments (PDPs). We will also defer the four previously used airplanes that we announced earlier this year.
Cutting our capital and operational spending We will reduce spending wherever we can to preserve our cash, and both of us will be taking a 50% pay reduction during this crisis.
We entered the year with a list of major initiatives to invest in our infrastructure, technology and real estate. As of today, we have paused or stopped more than 75% of these projects and will continue to stand down work wherever we can.
Increasing our cash reserves The dramatic loss of revenue in recent days means we will have to start dipping into our cash savings. Although we came into this with about $1.2 billion, our expenses total millions of dollars each day. The good news is we have secured a new liquidity facility – an extra credit line – which allowed us to borrow $1 billion. This is not free money – it’s a band-aid solution that holds us over and we have to pay it back with interest. Even with these cash reserves we, like the rest of the industry, will need significant government support to help us through these losses.
Calling for government intervention The governmental warnings and actions taken to manage this health crisis have hit both domestic and international travel hard. We have been coordinating with Airlines for America (A4A) and other U.S. airlines to ensure government leaders understand the threat to our global economy if air travel is not supported. When this pandemic passes – and it will – air travel will play a major role in getting life back to normal and supporting economic recovery. We are going to need significant government help to do that. This is not a position we’d like to be in, but government assistance will help us protect our 23,000 Crewmembers who are our most important priority as we navigate these turbulent times.
From the beginning we have faced many challenges and, against all odds, we have thrived through some incredibly difficult events. Now we are faced with what is by far the biggest challenge our company and our industry has ever seen. While we know this is an incredibly difficult time for all of you as you work to juggle your own concerns around coronavirus, we have come through other challenges in our 20 year history and we can – and will – come through this together.
The next few months won’t be easy, but please know that all the steps we’re taking today are focused on protecting the health and safety of our Crewmembers and Customers and ensuring JetBlue remains a great place for you to work well into the future.
Saab has received an order from the United Kingdom’s Ministry of Defence for a mid-life extension and support for the Arthur weapon locating system. The order value is 482 million SEK, and was booked in Q4, 2019.
Arthur protects forces and civilians by providing warning of incoming fire and is also used for tasks including counterbattery missions and fire control. The mid-life extension will represent a major programme of obsolescence management by the insertion of modern technology, ensuring that this critical operational counter-fire capability can be sustained on a cost-effective basis through to its extended out-of-service date.
“Our Arthur systems have contributed to protecting UK forces for more than 15 years. We look forward to continuing to strengthen the UK’s weapon locating capability for years to come,” says Anders Carp, Senior Vice President and Head of Saab’s business area Surveillance.
Deliveries of the mid-life extension will take place between 2022 and 2023. The support contract covers 2020-2026. Saab will carry out the work in Gothenburg, Sweden, with support also taking place at 5th Regiment Royal Artillery’s Marne Barracks in Catterick, UK. Arthur is known in the UK as the Mobile Artillery Monitoring Battlefield (MAMBA) radar.
“MAMBA has long proven itself as a battle-winning capability, protecting civilians and troops on operations for many years. Our troops in Catterick will work alongside our counterparts at Saab to ensure this life-saving piece of equipment remains in service for the next six years”, says Jeremy Quin MP, the UK’s Minister for Defence Procurement.
The UK received the first Arthur systems from Saab in 2003, and the systems have supported operations in Iraq and Afghanistan.
Article by Belén Morant, Media: Airbus Helicopters; Jonny Carroll; DTX Media
Tim Ochsner, Chief Pilot of the Texas Department of Public Safety (DPS), explains the key to the success of the SAREX (search and rescue exercise)
When it comes to offering an adequate, effective and rapid response to natural disasters there’s no room for improvisation, particularly when a number of different agencies are involved. Tim Ochsner, Chief Pilot of the Texas Department of Public Safety (DPS), explains the key to the success of the SAREX (search and rescue exercise) conducted by more than 20 different agencies since 2015, which has now established itself as the benchmark for rescue training in the US.
How did the need arise to organise rescue training on such a large scale as SAREX?
In 2011, the state of Texas had huge problems with wildfires, and the following years we had two major floods. All the agencies equipped with aerial capability for these kinds of situations were involved: the Army with their Lakotas, our local EMS agencies, the Austin Police Department with their H125 and San Antonio Police Department with an H125 as well…
We all quickly formed a team and worked together out of necessity due to the flooding. We didn’t have time to set much up – we just did it.
After those events, we thought we needed to come up with a better plan for training, establish a communication plan and standard operating procedures. We had to establish a cooperation framework that was independent to the parties we tend to work with, because at the end of the day these things can change. That’s how the SAREX exercise came about.
Ryanair, Europe’s No.1 airline, today officially launched its major training partnership with Aviomar Flight Academy on Febuary 19th to deliver a Ryanair mentored program in Rome. This partnership will ensure Ryanair continues to attract highly trained professional pilots to support its growth across Europe.
The programme, which commenced in October 2019, gives trainee pilots a structured path to achieve an exceptional training course and reach a standard where they are ready to join the Ryanair Boeing 737 Type Rating programme.
Pilots on the programme will be trained by Aviomar Flight Academy instructors, using Ryanair procedures, as they take their first steps towards becoming Ryanair pilots. Over the course of the next 4/5 years, up to 400 new pilots from across Europe will be recruited and trained by Aviomar Flight Academy, underlining its respected position in the pilot training market. Newly trained pilots who commence their ab-initio training now will start their careers with Ryanair from early 2022.
Ryanair offers unparalleled career opportunities for new pilots, with:
82 bases
Industry leading training standards and success rates
The best rosters in European aviation – 5 days on, followed by 4 days off
This certificate confirms Kopter as a duly recognized Production Organization. It is attesting that Kopter has in place qualified personnel, the necessary methods, processes and procedures, as well as a reliable quality system. It is a major milestone for Kopter making it eligible to produce and ramp up its light single-engine SH09 helicopter.
The handover ceremony of the certificate took place today at the Kopter premises in Mollis with the participation of the Chief Operations Officer of Kopter, Dr. Jan Nowacki, the FOCA POA Team Leader for Kopter, Urs Frei, and Andreas Boss, national FOCA POA coordinator.
Jan Nowacki said, “We are extremely satisfied to receive this certificate, which acknowledges all the work we’ve done in building a well performing team and organization. We thank FOCA for their trust and strong support in reaching this key step and look forward to pursuing our close cooperation on our way to produce our new turbine engine helicopter.”
Andreas Boss and Urs Frei commented: “We are proud to handover this POA certificate to Kopter. It demonstrates that Kopter fulfills the highest aviation standards and possesses the capability, facilities, manpower, resources and quality assurance systems to produce and support the SH09 helicopter which is on its way to certification.”
TAROM, Romania’s national flag carrier, today took delivery of its first ATR 72-600 aircraft, the market-leading product of the world’s number one regional aircraft manufacturer. With a brand new livery, this aircraft is the first of a leasing contract with leading regional aircraft lessor NAC, for nine ATR 72-600.
TAROM has been very successful in its domestic market operations by using ATR aircraft – both ATR 42‑500 and ATR 72-500 – to compete with low cost carriers. When this major fleet upgrade is completed, by the end of 2020, the Romanian carrier will offer an additional 330,000 seats every year, at the same operating cost as its previous seat level, improving short haul connectivity in Romania. With ATR 72-600 burning 40% less fuel and emitting 40% less CO2 than similar-sized regional jets, TAROM will support the development of local and more isolated communities in a responsible way, while further consolidating their position in the market.
TAROM Chief Executive Officer George Barbu said: “We are looking forward to starting operations with our brand new ATR 72-600, the only aircraft on the regional market to meet our ambitious targets in terms of efficiency, modern technology and environmental performance. We are going to be able to develop new routes and increase frequency and seat availability, whilst offering the highest levels of comfort and technology.”
NAC Chairman, Martin Møller added: “The economics of the ATR 72-600, its modernity, passenger comfort and flexibility, along with proven environmental credentials make it an attractive asset, for both lessors and airlines. We thank TAROM for the confidence they have placed in NAC and we look forward to strengthening our relationship in the future.”
Stefano Bortoli, Chief Executive Officer of ATR commented: “Renewed confidence from a loyal customer is the best possible endorsement for an aircraft manufacturer. Especially when the decision is made after a vigorous evaluation of the existing solutions on the market – we know that our product is working for our customers. All regions deserve the same opportunity to be part of a connected world and ATR aircraft show unrivalled performance in connecting people and businesses responsibly.”
TAROM and ATR have been working together for 20 years. This major fleet upgrade will also enable the airline to benefit from state-of-the-art avionics, including glass cockpit, LPV and V-NAV capabilities, for safe, flexible and efficient operations.
Major upgrade adds option to load instrument procedures, customized holds and more
Garmin International, Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), today announced the addition of new features within the Garmin Pilot™ app that incorporate professional IFR navigation tools found within Garmin avionics. Pilots can experience a near-seamless transition between Garmin avionics and the Garmin Pilot app when performing common functions, such as loading and activating instrument approach procedures, departures and arrivals within the Americas. Additional features such as a visual procedure selector, custom holding patterns and more, give pilots convenient access to advanced tools all within a mobile app.
Vertical planning within Garmin Pilot (Photo: Business Wire)
“Leveraging technologies found within Garmin avionics and flight decks, we’re excited to bring this game-changing update to Garmin Pilot customers,” said Carl Wolf, vice president of aviation sales and marketing. “This upgrade gives pilots the ability to load complex routes and procedures into the app just as they would within a Garmin integrated flight deck, offering added convenience, time savings and confidence when transitioning between multiple Garmin products in the cockpit.”
Professional IFR navigation tools
Within the latest Garmin Pilot upgrade, pilots have the option to load or activate departures, arrivals and instrument approach procedures. Published holds that are included as part of the missed approach are also added to the flight plan. When pilots activate a procedure with published altitude constraints, those altitudes are automatically incorporated into a flight plan within the app. Pilots can also choose to manually add altitude constraints into a flight plan. Additionally, approach procedures with radius-to-fix (RF) legs can be activated within Garmin Pilot.
Using the vertical planning feature within Garmin Pilot, pilots can more easily input and adhere to crossing restrictions in a flight plan. For example, pilots can manually input a crossing restriction over a specific navigational aid or GPS waypoint. With these new features, pilots can optimize their flight planning and fuel calculations.
Visual procedure selector
Pilots can now more easily visualize departures, arrivals and instrument approach procedures prior to a flight using the visual procedure selector. This new selector allows pilots to simultaneously view departures, approaches or arrivals on a map alongside a flight plan so it’s easier to visualize and select the most appropriate procedure based on a flight plan and intended direction of flight.
Customized holding procedures
Pilots now have the flexibility to easily build customized holding patterns. These holds may be created over an existing fix or over a user-defined waypoint and then inserted into a flight plan. When creating a hold, pilots can easily input an inbound or outbound course, select left or right turns and specify leg length in time or distance. Unpublished holds or those assigned by air traffic control are easily created and displayed within Garmin Pilot to simplify the process of visualizing and flying a holding pattern.
Worldwide route data packages
Route data packages within Garmin Pilot help to ensure pilots have downloaded all of the data required for a flight plan. Once a flight plan is entered, pilots can review the data that is downloaded to their mobile device. If information is missing for a particular flight, Garmin Pilot displays an option to download additional data. Route data packages are also available worldwide to help ensure pilots have all of the data they need prior to every flight. Databases that are included within the worldwide route data packages include navigation data, instrument approach procedures, SafeTaxi®, terrain, obstacles and more.
The newest release of Garmin Pilot on Apple mobile devices is available immediately. For new customers, Garmin Pilot is available in the Apple App Store as a free download for the first 30 days. After the 30-day trial period, customers may purchase an annual subscription of Garmin Pilot starting at $79.99. Garmin Pilot is supported by Garmin’s award-winning aviation support team, which provides 24/7 worldwide technical and warranty support. Visit www.garmin.com/aviation for additional information.
Provides more efficient service to improve the travel experience and benefit customers throughout New England and the greater Northeast
NEW YORK – Amtrak continues to prioritize upgrading the customer experience as travelers along the Northeast Corridor (NEC) will now benefit from increased weekday service on Northeast Regional trains at popular stations in Mystic, CT and Westerly, RI to receive more access to the region’s major markets. The new schedule, which largely alternates trains at these stations to provide more meaningful service, will go into effect beginning Monday, March 16.
“By providing additional service for Mystic and Westerly, travelers and residents will reap the benefits of a more efficient travel experience,” said Amtrak President and CEO Richard Anderson. “The benefits will also expand beyond these two stations as it allows Amtrak to better serve populations and cities along the NEC by offering additional access to and from urban areas in Boston, New York, and Virginia.”
In addition to the customer benefits and improvements to quality of travel via the expanded service, Amtrak also remains committed to continuous improvement and innovation throughout the entirety of its rail network, on its trains and at its stations. Amtrak recently announced the expansion of its popular assigned seating offering in Business Class for Northeast Regional trains, which provides a more seamless onboarding process and the option for customers to select their preferred seat.Northeast Regional trains, as part ofAmtrak’s NEC fleet, are also the country’s only all-electric intercity trains, providing a more environmentally friendly way to travel as part of Amtrak’s goal to reduce its carbon footprint.
Weekday Southbound trains will now stop at Westerly and Mystic at the following times (new service highlighted in blue):
Weekday Northbound trains will now stop at Westerly and Mystic at the following times:
There are no changes to weekend trains at this time; Schedules are subject to change. Tickets are now on sale on Amtrak.com, the Amtrak app, via our ticket agents or by calling 1-800-USA RAIL.
PARIS (Reuters) – Airbus <EADSY> posted its biggest January order haul in at least 15 years on Thursday as it booked a major leasing order that has been in the pipeline for several months, and carried out 31 aircraft deliveries.
The European planemaker said it had taken orders for 296 aircraft in January, including the recently finalised order for 102 planes from Air Lease Corp <AL> as well as 100 jets from U.S. low-cost carrier Spirit Airlines <SAVE>. After cancellations, it started the year with 274 net orders.
Cancellations included 20 single-aisle jets from Colombia’s Avianca, balanced by 20 orders for broadly similar aircraft from leasing company BOC Aviation in what some industry sources have described as a swap to ease their financing. Neither firm was available for comment.
Lufthansa <LHA.DE> canceled two A350 wide-body jets.
Rival Boeing, whose sales and deliveries have been affected by the grounding of its 737 MAX, has yet to post January data.
Airbus said on Thursday its deliveries from an overseas assembly plant in China had been halted amid the coronavirus outbreak. Airbus has joined other local companies in extending a routine shutdown planned for Chinese New Year, due to the impact of the health scare on its supply chains and logistics.
Airbus is expected to give targets next week and barring a worsening of the coronavirus crisis could shoot for record deliveries of at least 900 jets in 2020 as Boeing remains on a backfoot due to the MAX grounding, industry analysts say.
(Reporting by Tim Hepher; Editing by Alexandra Hudson)
FILE PHOTO: Logo of Airbus is pictured at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse
