SEOUL, April 2 (Reuters) – South Korean budget airline Eastar Jet plans to lay off about 700 out of some 1,600 employees due to operational difficulties from the coronavirus outbreak, the carrier’s spokesman said on Thursday.
The spokesman declined comment on whether it was temporary layoffs, saying that he did not have the details.
The budget carrier is also in talks to reduce its fleet, currently consisting of 21 Boeing 737-800s, by 10 planes, the spokesman said.
(Reporting by Joyce Lee; Editing by Christian Schmollinger)
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.
70% corresponds to a 90% reduction in international flights and 40% in domestic operations. All customers with affected international and national flights from today can reschedule their journeys until December 31, 2020, at no additional cost
Following new border closures of various countries and the subsequent drop in demand, LATAM Airlines Group S.A. and its subsidiaries will reduce their capacity by 70%, equivalent to a 90% decrease in international operations and 40% in national flights.
“We made this difficult decision following border closures that have made operating to a large part of our network impossible. If these unprecedented travel restrictions are extended over the next few days, we cannot rule out further reductions to our operation,” said Roberto Alvo, Chief Commercial Officer and CEO-elect of LATAM Airlines Group.
All passengers with affected national or international flights from today (March 16, 2020), will be able to reschedule their flights until December 31, 2020, at no additional cost.
LATAM’s customer service channels are currently receiving high numbers of enquiries, impeding the ability to attend customers. To be able to focus on passengers with the most pressing requirements, LATAM requests that customers do not call more than 72 hours prior to their flight.
Consortium of bidders led by Advent, Cinven and RAG foundation
Sales proceeds pave the way for further transformation of thyssenkrupp
Cash inflow remains within the company
Buyers give far-reaching site and employment guarantees for tk Elevator
Closing and purchase price payment expected by the end of the current fiscal year
Martina Merz: “With the sale of Elevator, thyssenkrupp can pick up speed again. We will reduce the company’s debt as far as is necessary and at the same time invest as much as is reasonable in its further development.”
thyssenkrupp sells its Elevator Technology business entirely to a consortium led by Advent, Cinven and RAG foundation. The respective Executive Board decision was approved on Thursday evening by the Supervisory Board of thyssenkrupp AG. The purchase agreement has been signed. Closing of the transaction is expected by the end of the current fiscal year. The purchase price is €17.2 billion. thyssenkrupp will reinvest part of the purchase price[1] (€1.25 billion) in a stake in the elevator business. The transaction is subject to merger control approvals, although thyssenkrupp does not expect the competent authorities to have any reservations. The proceeds from the transaction will remain within the company and are to be used to the extent necessary to strengthen the balance sheet. Alongside this, the proceeds shall be used to advance the development of the remaining businesses and the portfolio. As announced at the Annual General Meeting at the end of January, thyssenkrupp is proceeding the analysis phase so that a decision on the concrete use of funds can be taken in May.
Martina Merz, CEO of thyssenkrupp AG: “With the sale, we are paving the way for thyssenkrupp to become successful. Not only have we obtained a very good selling price, we will also be able to complete the transaction quickly. It is now crucial for us to find the best possible balance for the use of the funds. We will reduce thyssenkrupp’s debt as far as is necessary and at the same time invest as much as is reasonable in developing the company. With this, thyssenkrupp can pick up speed again.”
The sale of Elevator is a favorable solution not only for the company, its shareholders, customers and employees, but also for the elevator business itself. In the consortium, thyssenkrupp has found new owners for the elevator business who have extensive industrial expertise and offer the workforce a high degree of security. The buyers have a strong track record in profitably growing and nurturing companies to become global champions.
In negotiations with employee representatives and the IG Metall trade union, the buyers have committed to far-reaching site and employment guarantees. In addition, it was agreed that the buyers will continue to manage thyssenkrupp Elevator as a global group. The company will also remain based in Germany and employee co-determination will continue. That means the solution is in line with thyssenkrupp’s understanding of corporate and social responsibility.
“We are not pleased to part with our employees and the elevator business. Nevertheless, today is a good day for everyone involved. With this step, we are opening up real prospects for the future: for the elevator business as an independent company and, with the financial solidity we have gained, also for all other areas of thyssenkrupp,” Martina Merz added.
New Technology Creates Hyper Elevators That Can Go Sideways
American Airlines Group Inc. (NASDAQ: AAL) will implement a phased suspension of additional long-haul international flights from the U.S. starting on March 16. This suspension will last through May 6. This change is in response to decreased demand and changes to U.S. government travel restrictions due to coronavirus (COVID-19). The airline will:
Reduce international capacity by 75% year over year — from March 16 to May 6
Continue to operate one flight daily from Dallas-Fort Worth (DFW) to London (LHR), one flight daily from Miami (MIA) to LHR and three flights per week from DFW to Tokyo (NRT)
Continue short-haul international flying, which includes flights to Canada, Mexico, Caribbean, Central America and certain markets in the northern part of South America, as scheduled
In addition to the international changes, the airline anticipates its domestic capacity in April will be reduced by 20% compared to last year and May’s domestic capacity will be reduced by 30% on a year over year basis.
International Route Changes
By region, the new schedule changes include the following:
Asia, effective March 16
American will suspend all remaining flights to Asia, except for three flights per week from DFW to NRT
Australia and New Zealand, effective March 16
Suspending service from Los Angeles (LAX) to Auckland (AKL) effective March 16, which was slated to end seasonal flying on March 28
Suspending service from LAX to Sydney (SYD) effective March 16
Europe, phased suspension
American will continue to operate one flight daily from DFW to LHR and MIA to LHR
Suspending flights from New York (JFK), Boston (BOS), Chicago (ORD), and LAX to LHR gradually over the next seven days to reaccommodate passengers and crew
LHR, Dublin (DUB) and Manchester (MAN) flights from Charlotte (CLT), Philadelphia (PHL) and Phoenix (PHX) will be suspended faster, as these airports are not approved gateways by the U.S. Department of Homeland Security. Final eastbound flights from CLT, PHL and PHX will be on March 15; final westbound flights returning from LHR, DUB and MAN will depart March 16
Continued suspensions in other parts of Europe, as previously announced, including the delayed start of some seasonal routes as well as flights to and from Amsterdam (AMS), Barcelona (BCN), Frankfurt (FRA), Madrid (MAD) and Munich (MUC) Paris (CDG) and Zurich (ZRH) through early May, or later, based on guidance from the U.S. government and customer demand
South America, effective March 16
Suspending service from JFK and MIA to Rio de Janeiro (GIG) and Georgetown, Guyana (GEO)
Suspending service from DFW, JFK and MIA to São Paulo (GRU)
These capacity reductions assume no slot waivers are in place other than those previously granted. At airports where demand exceeds airfield and/or terminal capacity, access is governed by slots that grant airlines permission to take off and land at specific times. Given the decrease in demand related to COVID-19, American has requested temporary relief from this usage requirement — otherwise known as requesting a slot waiver — to better align capacity with demand without the risk of losing valuable takeoff and landing slots for the future. American will continue to review its network and make adjustments as needed if waivers are granted.
LAS VEGAS (March 15, 2020)– Wynn Resorts has decided to temporarily close Wynn Las Vegas and Encore as part of its continuing effort to reduce the spread of COVID-19 (coronavirus).
The Company has committed to pay all full-time Wynn and Encore employees during the closure.
The closure will be effective Tuesday, March 17 at 6 pm and is expected to be in effect for two weeks, after which time the Company will evaluate the situation. A limited number of employees and management will remain at the resort to secure and maintain the facility. For additional information and updates, please visit www.wynninfo.com.
Due to the COVID-19 situation, Norwegian is preparing to cancel approximately 3000 flights between mid-March and mid-June. This represents approximately 15 percent of the total capacity for this period. The company has also put several other measures in place, including temporary layoffs of a significant share of its workforce.
The past week, Norwegian has experienced reduced demand on future bookings. The company will cancel about 3000 flights to meet the change in demand. The cancellations represent approximately 15 percent of the total capacity for the period mid-March to mid-June. It will affect the entire network and more details will be shared as soon as they are ready to be implemented. Affected customers will receive information about these changes as soon as they take place.
“This is a critical time for the aviation industry, including us at Norwegian. We encourage the authorities to immediately implement measures to imminently reduce the financial burden on the airlines in order to protect crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.
“Unfortunately, cancellations will affect a significant share of our colleagues at Norwegian. We have initiated formal consultations with our unions regarding temporary layoffs for flying crew members as well as employees on the ground and in the offices. We will continue to engage in constructive dialogue with unions and employees to work through this difficult situation together,” said Schram.
Norwegian will continue to share updates with its customers, the financial market and the media once new measures are implemented.
DETROIT (Reuters) – Ford Motor Co is putting more chips on a bet that it can profit from selling electric vans to delivery businesses that need to reduce carbon emissions.
Ford will roll out an all-electric version of its Transit van for North America in model year 2022, mirroring the timetable for launching a similar model for the European market, the company said on Tuesday in conjunction with the NTEA Work Truck Show in Indianapolis.
“Our electric bet as a company is different than our competitors,” Ford Chief Operating Officer Jim Farley said in an interview. “The most critical bet we will be making over the next several years will be our commercial vehicles.”
Two of three electric vehicles Ford has announced as part of an $11.5 billion investment in electrification through 2022 are aimed at commercial customers – the Transit and an electric version of the company’s best-selling model, the F-150 pickup.
Ford’s Mustang Mach-E electric SUV represents a low-volume challenge to electric luxury vehicle market leader Tesla Inc.
The electric Transit and F-150 will play in market segments Ford dominates in the United States and Europe.
“Half of the vehicles doing work in the U.S. are Ford Motor Co vehicles,” Farley said. Ford is also the No. 1 commercial vehicle brand in Europe, and has led the commercial van market in Britain, which is Europe’s largest, for 55 years.
Regulators in Europe and in some U.S. cities are stepping up pressure on businesses to replace diesel or gasoline-fueled delivery vans with electric models to reduce pollution in city centers.
In the United States, Amazon.com Inc, has ordered 100,000 electric delivery vans from start-up Rivian, the first of which will be delivered in 2021 and built in Normal, Illinois. Ford has a separate partnership with Rivian.
The electric Transit will not be related to the Rivian van, said Ted Cannis, Ford’s director of electrification.
The new Transit will be an early test of the company’s efforts to deploy new connectivity technology and services to go with it, Farley said.
Ford said the electric Transit will be built in America and cost more than the gasoline-powered version, which starts at $34,500. Research firm Auto Forecast Solutions said it will be built in Kansas City, Missouri, along with the gasoline version.
Supplier sources who asked not to be identified said Ford will launch production in late 2021, with plans to build around 2,000 that year and increase to 14,000 annually by 2023.
(Reporting by Ben Klayman in Detroit; Additional reporting by Paul Lienert; Editing by Richard Chang)
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.
Investments as airline expands global network from DFW, improves customer experience
FORT WORTH, Texas — American Airlines has announced plans to build a new, larger catering kitchen at Dallas Fort Worth International Airport (DFW). The new facility is part of American’s long-term growth strategy at its largest hub, and will allow the airline to better serve customers as it grows.
The investment reaffirms American’s commitment to grow and improve customer experience at DFW. In addition to the new kitchen, construction is also slated to begin ona a state-of-the-art aircraft parts distribution facility, which will help reduce maintenance delays by providing parts from DFW to American’s global network.
This year alone, American has expanded at DFW by adding 15 more gates and increasing the amount of flying to 900 daily departures. Additionally, the airline introduced a Flagship Lounge to serve premium customers travelling to international destinations. The growth is part of a larger strategy that will continue as American continues to invest in the operational efficiency and customer experience initiatives at DFW.
“DFW remains a great source of opportunity and growth for American,” said Cedric Rockamore, American’s Vice President of DFW of Hub Operations. “These investments will ensure we can continue to welcome the world to and through DFW for a very long time.”
Catering kitchen
American will build a new catering kitchen to support DFW’s current and future catering demands. The new facility will replace the existing catering kitchen, which was built in 1982 and is too small to support the airport’s growing operation. Construction on the new kitchen will begin in January 2020.
“In addition to more space, the new kitchen will provide updated equipment and efficiencies to improve our catering operation, which improves our reliability and provides a better experience for our customers,” Rockamore said.
The $100 million construction project will take about 18 months to complete and supports the first phase of development for DFW’s new Terminal F. This phase includes four new gates and customer areas located on the southeast corner of Terminal D and is scheduled to open in 2022.
The kitchen will continue to be staffed and operated by LSG Sky Chefs, the airport’s largest catering vendor.
Central Fulfillment Center and cargo mail facility
American plans to break ground in January 2020 on a new Central Fulfillment Center that will house aircraft parts for line maintenance support across our network. The 390,000-square-foot facility will enable the airline to fulfill request for parts up to 75% faster, minimizing potential maintenance delays. Locating this facility at DFW enhances our ability to distribute parts for overnight maintenance throughout the network.
This project will also include a facility for cargo mail, a key revenue stream and narrowbody product for American Airlines Cargo. The expanded space will allow the Cargo team to optimize fleet, network and market demands for transporting mail.
Terminal expansion
To support the demand for additional growth, DFW continues to develop new and optimize existing terminal spaces. These efforts include two new gates and customer areas at Terminal E, which American will utilize to support summer 2020 flying, and the continued development of Terminal F.
With the first phase of development for Terminal F underway, details of the additional phases will be developed as American and DFW continue to study infrastructure demands and customer needs.
