We thank the Administration, especially the President and Secretary Mnuchin, as well as the Senate for working together to take swift bipartisan action to support the American economy, including the 2.5 million jobs and 17,000 suppliers that Boeing, the aerospace industry and the U.S. rely on to maintain our world leadership in commercial, defense and services. The bill’s access to public and private liquidity, including loans and loan guarantees, is critical for airlines, airports, suppliers, and manufacturers to bridge to recovery.
Boeing’s top priority is to protect our workforce and support our extensive supply chain, and the CARES Act will help provide adequate measures to help address the pandemic. We have also taken a number of measures for affordability and liquidity as we navigate the challenges our industry currently faces, including forgoing pay for our CEO and board chairman, suspending our dividend until further notice, and extending our existing pause of any share repurchasing until further notice.
We appreciate the House taking swift action to support the American people.
Aeroflot, the Russian flag carrier and member of the SkyTeam alliance, has taken delivery of its first A350-900, becoming the launch operator of the latest-generation widebody aircraft in Eastern Europe and CIS. Aeroflot’s A350-900 features a distinctive new livery embracing its almost 100-year heritage. Aeroflot has a total of 22 A350-900 aircraft on order and operates an Airbus fleet of 126 aircraft (107 A320 Family and 19 A330 Family aircraft).
Aeroflot’s A350-900 features a brand new elegant cabin design, offering unrivalled passenger comfort. The aircraft has a spacious three-class cabin layout with 316 seats: 28 private Business Class suites with full-flat seats, 24 Comfort Class with extra legroom and 264 Economy Class. In addition, the latest-generation Panasonic eX3 in-flight entertainment system, HD screens and Wi-Fi connectivity will ensure enhanced experience for all passengers on long-haul flights. Aeroflot will operate its A350-900 from Moscow to a number of destinations including London, Dubai, New York, Miami, Osaka and Beijing.
The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments – up to ultra-long haul (9,700 nm). Its Airspace by Airbus cabin is the quietest of any twin-aisle aircraft and offers passengers and crews the most modern in-flight flying experience. The aircraft features the latest aerodynamic design, a carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce Trent XWB engines. Together, these latest technologies result in 25% lower operating costs, as well as 25% reduction in fuel burn and CO2 emissions compared with previous-generation competing aircraft – demonstrating Airbus’ commitment to minimise its environmental footprint while remaining at the cutting edge of air travel.
With this expanded private fleet and access to Delta’s global network, Wheels Up is strategically positioned to fulfill every travel need of its now 8,000+ members and customers.
The closing officially combines Delta Private Jets (DPJ) with Wheels Up, pairing Wheels Up’s membership programs, innovative digital platform and world-class lifestyle experiences with Delta Private Jets’ renowned reliability, safety, service and scale. The combination creates one of the world’s largest owned and managed fleets of nearly 200 private aircraft, ranging from the King Air 350i to large-cabin jets. With this expanded private fleet and access to Delta’s global network, Wheels Up is strategically positioned to fulfill every travel need of its now 8,000+ members and customers.
In the weeks ahead, Wheels Up and Delta will be communicating directly with customers to roll out cross-platform partnership benefits and other program features that cannot be found anywhere else within the private aviation industry.
“Together, Wheels Up and Delta will democratize the industry to make private flying and the private flying lifestyle accessible to significantly more individuals and businesses around the world,” said Wheels Up Founder and CEO Kenny Dichter. “By adding Delta Private Jets and partnering with Delta, our membership platform has evolved to one that can fulfill a vast range of flight needs on a very large scale.”
As part of this transaction Delta’s Chief Operating Officer, Gil West, has joined the Wheels Up Board of Directors.
“This innovative partnership is the latest step in Delta’s efforts to transform travel into a part of the journey to look forward to,” West said. “Bringing together the Delta brand, DPJ’s renowned reliability and scale, and the exceptional experiences that are the hallmark of Wheels Up, is opening up a whole new world of travel options to more travelers than ever before.”
The Wheels Up and Delta Private Jets teams will be working together to ensure a seamless transition for all DPJ employees and customers. DPJ employees will continue to operate out of their current location in Cincinnati.
“We are thrilled to welcome the talented and passionate Delta Private Jets employees into the Wheels Up family and for Gil West to join our Board of Directors.” said Dichter.
Over the next year, Wheels Up and Delta will continue introducing exciting cross-platform benefits and features, all designed to add more value for their members and customers.
Financial terms of the transaction will not be disclosed, and there is no expected impact to Delta’s 2020 financial guidance.
Volkswagen logo is seen on a Teramont X SUV displayed at the second media day for the Shanghai auto show in Shanghai
HONG KONG/BEIJING (Reuters) – Volkswagen AG <VWAGY> is set to take a 20% stake in Chinese electric vehicle battery maker Guoxuan High-tech Co Ltd, two sources told Reuters, as the German firm accelerates its electric push into the world’s largest auto market.
The deal would mark Volkswagen’s first direct ownership in a Chinese battery maker and comes as the Wolfsburg-based automaker strives to meet a goal of selling 1.5 million new energy vehicles (NEVs) a year in China by 2025, including plug-in hybrid cars.
The top foreign automaker in China plans to acquire the stake in Shenzhen-listed Guoxuan via a discounted private share placement in the coming weeks, the two sources with knowledge of the matter said. Based on Guoxuan’s market capitalization of $2.8 billion, a 20% stake in the company at present is worth about $560 million.
The deal’s details have been mostly finalized and the two firms are waiting for new Chinese regulatory rules on private share placements that will provide a more flexible pricing mechanism and shorter lock-up periods for majority shareholders, said one of the people, speaking on condition of anonymity.
After the stake purchase, Volkswagen will become the battery maker’s second-largest shareholder with a 20% stake, behind Zhuhai Guoxuan Trading Ltd, a firm controlled by Guoxuan’s founder Li Zhen, which currently holds 25%.
Guoxuan is among a swathe of mid-tier Chinese battery makers behind CATL and BYD. It is based in China’s eastern city of Hefei, where Volkswagen is also building electric vehicles with JAC Motor, one of a number of its Chinese joint venture partners.
A third source, who declined to be named due to the sensitivity of the matter, said Volkswagen has long wanted to control a battery maker to better manage its supply chain.
Volkswagen declined to comment. Guoxuan and the China Securities Regulatory Commission did not immediately respond to requests for comment.
To achieve its NEV sales goal in China, Volkswagen has built a new $2.5 billion electric vehicle plant with partner SAIC Motor that will have annual output capacity of 300,000 cars and is also revamping manufacturing facilities in China’s southeastern city of Foshan to build electric cars with partner FAW Group.
Volkswagen has also identified CATL as a strategic supplier and Volkswagen board member Stefan Sommer told Reuters in July last year that it could even build its own battery cell manufacturing plants in China.
“By holding a stake in the top Chinese battery makers, carmakers can gain more bargaining power on battery prices,” said Yale Zhang, managing director of Shanghai-based consultancy AutoForesight. “Foreign carmakers are now catching up with their Chinese counterparts on securing battery supplies in China.”
Volkswagen’s rivals in China include Tesla, which earlier this month began delivering cars from its $2 billion factory in China. The U.S. electric car maker eventually plans to manufacture 250,000 vehicles a year in the plant’s first phase.
China has been a keen supporter of NEV – pure battery electric, hybrid and plug-in hybrids – and has started implementing NEV sales quota requirements for automakers.
However, cuts to subsidies have dealt the market a blow, with NEV sales contracting for the first time last year. Sales this year are likely to be flat or rise only slightly, according to China’s top auto industry association.
(Reporting by Julie Zhu in Hong Kong and Yilei Sun in Beijing; Additional reporting by Zhang Yan and Zhang Xiaochong in Beijing; Editing by Brenda Goh and Richard Pullin)
A Jet Airways vehicle leaves the company’s headquarters in Mumbai
BENGALURU (Reuters) – Bankrupt Indian airline Jet Airways Ltd said it had agreed to sell its assets in Netherlands to Dutch airline KLM.
If the deal is finalised, it will only involve a sale of part of the company’s business and not impact the shareholding pattern, Jet said in a statement dated Jan. 16. It did not detail the assets held in Netherlands.
Once India’s biggest private carrier, Jet stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country.
It was admitted to bankruptcy court in June after its lenders, led by State Bank of India SBI.NS, failed to agree on a revival plan.
KLM, a part of Air France KLM, was once codeshare partners with the defunct airline and in the wake of Jet’s collapse had added flights to India.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Subhranshu Sahu and Anil D’Silva)
Caesars Entertainment Corporation (NASDAQ:CZR) (“Caesars Entertainment” or “Caesars”) and VICI Properties Inc. (NYSE:VICI) (“VICI Properties” or “VICI”) today announced they have signed an agreement to sell Harrah’s Reno Hotel and Casino (“Harrah’s Reno”) to an affiliate of CAI Investments (the “Buyer”) for $50 million. The proceeds of the transaction shall be split 75% to VICI and 25% to Caesars, while the annual rent payments under the Non-CPLV Master Lease between Caesars and VICI will remain unchanged.
Under the terms of the agreement, Caesars will continue to operate the property upon closing of the transaction pursuant to a short-term lease with the Buyer, which will allow Caesars to cease operations at the property during the second half of 2020. At the end of the term, Caesars will deliver the property to the Buyer to be redeveloped into a non-gaming hotel and mixed-use development.
“We recognize the long legacy of Harrah’s in Reno, where the brand began 82 years ago and our role in the community. We are pleased the Buyer is committed to the community and supports the redevelopment of this wonderful asset. We have worked closely with the Buyer to provide a reasonable closure plan that allows our great staff in Reno ample time to secure their next jobs, including priority consideration for relevant openings at our other properties in Nevada, including Lake Tahoe and Las Vegas,” said Tony Rodio, CEO of Caesars Entertainment.
“The sale of Harrah’s Reno demonstrates our ability to continuously work constructively with our tenants to improve our individual businesses. This disposition will allow VICI to optimize the quality of our real estate portfolio and redeploy the proceeds toward other attractive growth opportunities while maintaining the existing financial terms of the Non-CPLV Master Lease with Caesars,” said John Payne, President and COO of VICI Properties.
“Being originally from the Reno/Sparks community, it is with great pride that we are investing in the Reno area by redeveloping this property,” said Christopher Beavor, CEO of CAI Investments. “CAI is excited to be working with Gryphon Private Wealth Management as capital partners for the project. Kirk Walton and Philip Oleson, Principals of GPWM Opportunity Zone Funds, which will be investing the required capital for the project, believe in the long-term growth potential of Reno.”
The agreement allows for Caesars to retain its guest data and places no restrictions on Caesars’ marketing activities. Reno will continue to be part of the Caesars Rewards network during the term of the short-term lease with Buyer.
The transaction is subject to the closing of the Eldorado/Caesars combination, regulatory approvals and other customary closing conditions.
Bombardier will perform heavy maintenance and refurbish 59 Bombardier-built REGINA commuter trains, improving safety and comfort for every passenger’s journey in Sweden
Latest contract highlights Bombardier’s position as industry-leading mobility services provider in the Swedish market
Mobility technology solution provider Bombardier Transportation announced today that it has signed a new services contract with AB Transitio, Sweden’s rail vehicle leasing company, to perform heavy maintenance and refurbish 59 BOMBARDIER REGINA Electric Multiple Unit (EMU) trains. The contract is valued around SEK 280 million ($30 million US, €27 million euro) over a period of five years. Deliveries of the newly refurbished trains is planned to start in mid-2020 with pre-series deliveries and will continue until mid-2024.
“With this new contract, Bombardier is expanding its services footprint in Sweden by maintaining the REGINA EMU trains operated by regional and private rail authorities, as well as refurbishing these trains to bring safe and reliable service to over millions of passengers across Sweden every year,” said Marina Sundman, Chief Commercial Office, Nordics Region, Bombardier Transportation. “We are proud to deepen our long-term relationship with AB Transitio and we are more committed than ever to delivering our range of service solutions to help customers maximize value from their assets.”
Around 20 years ago, our local teams designed and built these vehicles which are appreciated by the local rail operators. Today, more than 100 REGINA EMU trains operate across Sweden’s rail network in various car configurations, each train having travelled an average of 200.000 km per year in regional and intercity traffic, supporting the public transport authorities from south to the upper north of Sweden.
In addition to undertaking heavy maintenance on 59 REGINA EMU trains (54 trains of 2 cars and 5 trains of 3 cars each), our teams will also be involved in technical and comfort upgrades such as changing interior carpets, exterior paint, passenger seats refurbishment, interior lighting, installing additional pantograph with control equipment and new headlights.
This project marks a milestone in the development of our refurbishment activities and contributes to placing Bombardier as the leader of this market segment in Sweden. Bombardier is an important player in Sweden’s rail industry as a leading supplier of metros, trams, high speed trains, signalling systems and services.
Alstom’s fleet of 25 Avelia AGV very-high-speed trains operating in Italy has travelled a total of more than 100 million kilometres since entering service in April 2012, owned and operated under the service name Italo by Italo-Nuovo Trasporto Viaggiatori, the first private high-speed operator in Europe.
Italo, with its fleet composed of Avelia AGVs and Avelia Pendolinos, covers the entire national area served by high speed line, connecting a total of 25 Italian cities and 30 railway stations with 116 daily services.
“We are immensely proud that our trains have covered such a distance and transported so many passengers since beginning service. Add to that the Avelia Pendolino trains more recently delivered to NTV, and we have proof of the importance of high-speed rail services and Alstom’s unique ability to accompany its customers in the domain,” said Laurent Jarsalé, Vice-President of Alstom’s Mainlines Platform.
The Avelia AGV trains themselves run at speeds of 300km/h with the highest level of safety and comfort, thanks to an articulated architecture designed for very high speeds. The eleven-car configuration results in trains that are over 200 metres in length.
Passenger experience is at the centre of the Avelia AGV design. The train offers 100 mm of additional interior body width compared to conventional non-articulated very-high-speed trains and a bright interior thanks to the largest windows on the very high speed market. Passengers experience quiet and smooth travelling conditions – a result of bogies being placed between the cars.
The train also boasts long-term operational and financial benefits for the operator. This includes 15 to 30% less energy consumption compared to conventional non-articulated very-high-speed trains thanks to its lightweight, aerodynamic design and braking energy recovery. Maintenance costs are also up to 10% lower than non-articulated trains. The Avelia AGV is fully adaptable to operating needs: flexible configurations from 7 to 14 cars, and trainsets designed like a hollow tube that can be effortlessly fitted and refitted according to changing passenger requirements throughout the train’s 30-year lifespan.
22 November 2019 – The Northwest Rapid Transit Consortium (NRT) has reached contractual close for the extension to the existing NRT Public Private Partnership (PPP) contract on Sydney Metro.
The contract, which was awarded in 2014, has been extended to deliver a seamless customer experience on the new metro, with NRT to operate and maintain the full metro line from Rouse Hill to Bankstown – in total 66 kilometres of rail and 31 metro stations by 2024.
Alstom has signed a contract with NRT to supply the rolling stock and signalling system for the next stage of Sydney Metro, Sydney Metro City and Southwest. The project is an extension of the Metro North West Line, which successfully opened to customers in May 2019.
Under the contract, valued at approx. €350 million, Alstom will be responsible for the project management, design, supply, manufacturing, testing and commissioning of 23 six-car fully-automated Metropolis trains and the Urbalis 400 Communication Based Train Control (CBTC) signalling system. The trains will be manufactured in Alstom’s manufacturing centre in Sri City, India which successfully delivered 22 Metropolis trains for the Metro North West Line. The contract also includes an option to purchase further trains if required.
“Sydney Metro has been a game changer for the travelling public of Sydney and Alstom is delighted to continue to be a part of this iconic project. It strengthens Alstom’s position as the market leader for the supply of railway technologies in Australia.” said Ling Fang, Senior Vice President of Alstom Asia-Pacific.
As an extension of the existing Metro North West Line, the NRT PPP will provide a fully integrated turn-up and go service along a dedicated 66-kilometre metro network with a total of 31 stations from Rouse Hill through the City and to Bankstown. The Metro North West Line operator, Metro Trains Sydney, will be responsible for the operations and maintenance of the entire line.
The City and Southwest extension includes a 15km greenfield line with seven new stations plus the conversion of the existing suburban rail line to metro rail standards, covering a further 13km of track and 11 existing stations. The project also includes expansion of the current Sydney Metro Trains Facility at Rouse Hill and a new trains facility at Sydenham. Construction of the new line is currently underway with revenue service expected to start in 2024.
The Metropolis trains and digital signalling systems for the City & Southwest project will include the same design and features as the North West Line, designed to meet the specific needs of Sydney. According to the specifications, the new trains will meet strict sustainability criteria; a robust lightweight structure, low energy consumption, high levels of recoverability and recyclability, technical reliability and ease of maintenance. The trains will also be equipped with remote sensors for optimal maintenance planning.
Alstom has put sustainability and the passenger at the heart of its design process. The trains for Sydney will be built with the safety and comfort of passengers in mind, offering accessibility, wide doors and spaces to facilitate passenger flow, acoustic comfort, vibration mitigation and passenger information in real time.
Alstom’s metro trains are a world-leading, proven, safe and reliable train that serve many of the world’s great cities, including Paris, London, Amsterdam, Barcelona and Singapore. Alstom has more than 65 years’ experience in the production of metros, having sold over 17,000 metro cars that operate in 55 cities around the world and carry 30 million passengers every day.
Rouse Hill Station is on Sydney’s first metro line, Metro Northwest, which opened on 26 May, 2019. Services at the 13 metro stations operate every four minutes in the peak in each direction on Australia’s first driverless railway.
LONDON (Reuters) – U.S. buyout fund Warburg Pincus said on Monday that it had clinched a deal to sell its European airline services firm Accelya to rival private equity fund Vista Equity Partners for an undisclosed amount.
The deal, which was first reported by Reuters, allows Warburg Pincus to fully cash out after backing the Barcelona-based company for the past two years.
The U.S. investment firm launched an auction process during the summer to find a new owner for the business which serves more than 200 airlines including British Airways, Lufthansa and EasyJet.
Warburg Pincus bought Accelya from French private equity firm Chequers Capital in 2017 and quickly tripled its revenues by merging it with Mercator, a Dubai-based travel services group in which the U.S. buyout firm had been an investor since 2014.
Vista Partners, whose portfolio is mostly focused on software companies, was recently vying to buy a majority stake in WPP’s (WPP) data analytics firm Kantar but lost it to Bain Capital.
Its Chief Executive Robert Smith said Accelya was “at the forefront of innovation and positioned to shape the airline and travel industry for decades to come.”
Accelya employs 2,500 employees across 24 offices in 14 countries and recently signed a long-term deal as the International Air Transport Association’s (IATA) technology partner.
Bank of America (BAC) and Evercore advised Warburg Pincus on the deal while Vista hired Goldman Sachs (GS) and Houlihan Lokey to work on the purchase.
Law firm Kirkland & Ellis and Simpson Thacher served as the legal advisors to Warburg Pincus and Vista, respectively.
Reporting by Pamela Barbaglia; Editing by Susan Fenton
