Tag: State (Page 5 of 12)

Cash-Strapped El Al Israel Airlines Raises $148 Million

September 17, 2020 / WIL BALDWIN

TEL AVIV, Sept 16 (Reuters) – Cash-strapped El Al Israel Airlines raised $148 million in a government-mandated share offering on Wednesday that will enable it to receive a state bailout package.

In a regulatory filing in Tel Aviv, Israel’s flag carrier said it sold 753.35 million new shares at 0.671 shekels ($0.1963) each.

Its stock earlier had closed 5.6% higher at 0.774 shekel.

Demand reached 654 million shekels while El Al accepted 505 million shekels ($148 million) worth.

El Al did not give further details of the offering which took the total number of shares outstanding to above 1.2 million.

But Israeli media reported that Eli Rozenberg had obtained a controlling stake via the offering, with 44.9% of the airline’s shares. He is the son of American businessman Kenny Rozenberg, CEO of New York-based nursing home chain Centers Health Care.

Rozenberg in July had offered to funnel $75 million into the airline in return for a 44.99% stake.

An El Al spokesman said he could not immediately confirm the reports about Rozenberg’s bid.

Newspapers said the state’s overall stake would now be as much as 15.5%, while the current controlling shareholder – Knafaim Holdings – would see its stake fall to about 15%.

Israel’s Finance Ministry said it paid $34 million for its shares and that although it pledged a $150 million safety net, it was barely needed.

“The results of the offering express investors’ trust in the company’s business plan and in state aid,” it said in a statement.

El Al has been hit hard by the coronavirus outbreak and the government has for months offered to intervene to help it avoid bankruptcy.

That has included mandating a share offering and steep spending reductions to receive a $250 million loan that will be 75% backed by the government and used partly to pay back customers whose flights were cancelled.

The airline has reported losses for two years running, racked up debt to renew its fleet, and suspended flights when Israel closed its borders and furloughed most of its employees.

($1 = 3.4185 shekels) (Reporting by Rami Ayyub and Steven Scheer; Editing by Andrew Cawthorne)

Alstom Delivers Guadalajara Urban Transportation Network Line 3

September 14, 2020 / WIL BALDWIN

– Inauguration of a landmark mobility project for the State of Jalisco in Mexico

Alstom has officially delivered Line 3 of Guadalajara urban transportation network, a new line expected to carry around 230,000 passengers daily. The line covers nearly 21 kilometres, covering 18 stations through the cities Zapopan, Guadalajara and Tlaquepaque. It will be operated by the local operator SITEUR (Sistema del Tren Eléctrico Urbano – Urban Electric Train System).

In 2014, Alstom was selected by the federal Secretaría de Comunicaciones y Transportes (SCT – Communication and Transportation Ministry) to provide an integrated system for the Guadalajara network extension. The project, representing a nearly €330 million investment (with €240 million for Alstom), will enhance mobility services for residents across the State of Jalisco, providing significant social and economic benefits.

“Line 3 is designed to be 100% accessible to all, with spaces for people with disabilities inside the cars and dedicated infrastructure at all stations. The line is an example of a modern, inclusive transport system that offers passengers a reliable, safe and comfortable travel experience while remaining environmentally sustainable,” said Maite Ramos, Managing Director of Alstom Mexico.

“We congratulate everyone involved in the inauguration of this very important project for Jalisco. Without a doubt, it will greatly benefit all the State’s residents, changing the way they travel and improving their lifestyle. Alstom’s efficient work to carry out this project saw the company’s experience and commitment contribute to improving the quality of life of residents and proposing complete safety in their travel,” said Manuel Gomez Parra, General Director of Railway and Multimodal Development of the SCT.

The 2014 contract included the supply of 18 Metropolis trains, communication systems, the high-voltage and traction substations, and traffic control systems based on Urbalis 400, Alstom’s CBTC system. The trains are equipped with air conditioning, video surveillance, and passenger information systems.

With these projects, Alstom reaffirms its commitment to continue to lead the way to greener and smarter mobility around the world, developing and commercializing integrated systems that provide the sustainable foundation for the future of transportation.

Alstom has been present in Mexico since 1968, with the development of the first metro line in Mexico City. Since then, it has been an important ally for the development of mobility and urban connectivity, as well as the economic growth of the states of the country where it operates. For 52 years, Alstom has pioneered the introduction of metros and its maintenance in Mexico City, Monterrey and Guadalajara. In addition, the company has developed signalling systems and maintenance services for trains and infrastructure for the main railway companies in the country.

U.S. Leaves Tariffs on Airbus Aircraft Unchanged at 15%

August 12, 2020 / WIL BALDWIN

WASHINGTON (Reuters) – The U.S. government on Wednesday said it would maintain 15% tariffs on Airbus <AIR.PA> aircraft and 25% tariffs on other European goods, despite moves by the European Union to resolve a 16-year-old dispute over aircraft subsidies.

U.S. Trade Representative Robert Lighthizer (USTR) said the EU had not taken actions necessary to come into compliance with World Trade Organization decisions, and Washington would initiate a new process to try to reach a long-term solution.

USTR said it would modify its list of $7.5 billion of affected European products to remove certain goods from Greece and Britain and add an equivalent amount from Germany and France.

It ignored calls from EU officials and U.S. lawmakers to drop tariffs on EU food, wine and spirits, but did not add tariffs to vodka, gin and beer as it had threatened.

Airbus said it “profoundly regrets” the U.S. decision to keep tariffs in place on its aircraft.

Washington’s decision to refrain from increasing the tariff rates would help prevent a further escalation, an EU official said, calling for intensified efforts to resolve trade conflicts between the powerful economic blocs.

EU trade commissioner Phil Hogan would continue his active engagement with Lighthizer to reach a negotiated settlement, the official said, noting that the current economic slowdown underscored the urgency of ending the conflict.

Last month, Airbus said it would increase loan repayments to France and Spain in a “final” bid to reverse U.S. tariffs and jog the United States into settling the long-running fight over billions of dollars of aircraft subsidies.

The United States declared itself in full compliance with WTO findings in May after Washington state abolished aerospace industry tax breaks that largely benefited Boeing.

Trade groups are bracing for an escalation of the row in the autumn when the EU is expected to win WTO approval to hit back with its own tariffs over subsidies for Boeing <BA>.

Airbus said in a statement it “trusts that Europe will respond appropriately to defend its interests and the interests of all the European companies and sectors, including Airbus, targeted by these tariffs.”

Boeing urged the EU and Airbus to launch prompt and “meaningful negotiations with the U.S. to address the full scope of their noncompliance and finally bring this case to an end.”

USTR in October 2019 imposed 25% tariffs on an array of EU food, wine and spirits, including Italian cheese and single-malt Scotch whisky in retaliation for EU subsidies on large aircraft.

It initially imposed 10% tariffs on Airbus aircraft but hiked that to 15% in March.

(Reporting by Andrea Shalal, David Lawder, David Shepardson and Eric M. Johnson; Editing by Chris Reese, Richard Pullin and Tom Brown)

Airbus Offers Subsidy Concession to End U.S. Tariffs

July 26, 2020 / WIL BALDWIN

PARIS (Reuters) – Europe’s Airbus <AIR.PA> said on Friday it would increase loan repayments to France and Spain in a “final” bid to reverse U.S. tariffs and jog the United States into settling a 16-year-old dispute over billions of dollars of aircraft subsidies.

The European Union, France and Spain said the move to raise interest rates paid by Airbus on A350 aircraft development loans should settle the row at the World Trade Organization and urged Washington to withdraw tariffs on EU goods.

“In the absence of a settlement, the EU will be ready to fully avail itself of its own sanction rights,” EU Trade Commissioner Phil Hogan said.

The loans are part of a system targeted by the United States in the world’s largest corporate trade dispute, which has also aired condemnation of U.S. support for Boeing <BA>.

The United States last year won WTO authorization to impose tariffs on up to $7.5 billion of EU goods from wine to whisky.

Trade groups are bracing for an escalation of the row in the autumn when the EU is expected to win WTO approval to hit back with its own tariffs over subsidies for Boeing.

Click the link below to read the full story!

https://finance.yahoo.com/news/airbus-offers-final-concession-jet-073157204.html

Amtrak and Penndot to Restore Daily Keystone Service

July 4, 2020 / WIL BALDWIN

New safety initiatives will continue to be in effect for customers and employees

In coordination with state partners at the Pennsylvania Department of Transportation, beginning Monday, July 6, Amtrak is partially restoring full-length Keystone Service (New York – Philadelphia – Harrisburg) with one roundtrip between Harrisburg and New York in response to anticipated increased demand. Keystone Service train 640 will operate through to New York and train 653 will originate in New York and operate through to Harrisburg.

Modified Keystone Service includes nine weekday roundtrips and six roundtrips on weekends. Aside from the one additional roundtrip being added to New York, other Keystone Service trains will continue to temporarily operate between Philadelphia and Harrisburg only. Pennsylvanian (Pittsburgh – Philadelphia – New York) service was previously fully restored in June and includes one daily roundtrip operating normally between New York, Philadelphia and Pittsburgh.

Amtrak continues to take extra steps to keep train travel safe, including limiting bookings to less than half of capacity to maintain ample space for physical distancing onboard trains. All trains will be reserved to allow for physical distancing. Ticketing is now available on Amtrak.com, on Amtrak mobile apps or by calling 800-USA-RAIL.

“We are dedicated to doing everything possible to return service safely. We want everyone to feel comfortable as they navigate this new normal,” said Amtrak President and CEO Bill Flynn.

In addition to aggressive steps to disinfect stations and trains, additional Amtrak measures deliver a New Standard of Travel by including the following:

Face coverings: As part of Amtrak’s ongoing commitment to protect customers and front-line employees in response to the coronavirus pandemic, Amtrak is requiring that all customers in stations, on trains and Thruway Buses wear face coverings. The Centers for Disease Control and Prevention recommends the use of simple cloth face coverings or masks to slow the spread of the virus and prevent transmission.
Limiting bookings: We are limiting bookings on most trains to allow for more physical distancing in seating areas. Individuals traveling alone may use the seat next to them for personal belongings, while friends and family members will easily find seats together.
Air quality: All Amtrak trains are equipped with onboard filtration systems with a fresh air exchange rate every 4-5 minutes.
Cashless service: As an added measure to ensure the health and safety of our customers and employees, we are temporarily accepting only cashless payments in stations and on trains.
Physical distancing: Signage has been displayed at our busiest stations to indicate safe distances in high customer traffic areas such as waiting rooms, ticket offices, base/top of escalators, lounge entrances, etc. In addition, clear protective barriers have been installed at stations where there were no barriers.

Tesla Negotiating for Possible Texas Vehicle Assembly Plant

June 15, 2020 / WIL BALDWIN

(Reuters) – Electric carmaker Tesla Inc is negotiating possible incentives with a Texas county that could bring a new auto assembly plant to the area near Austin, the state capital, the Austin American-Statesman reported on Monday.

Travis County Commissioners Court is scheduled to discuss terms of the deal on Tuesday, the paper reported, citing people with knowledge of the situation. A vote is expected in the coming weeks.

The paper said it was unclear whether negotiations with Travis County show that Tesla has picked the Austin region as the site for the plant, which would build the company’s electric pickup truck and Model Y SUV and employ thousands of people, or if the company is also negotiating with officials in Tulsa, Oklahoma.

Tesla officials could not immediately be reached to comment. The company’s chief executive, Elon Musk, has tweeted previously about the possibility of bringing a plant to Texas. Oklahoma also has been mentioned as a possible site.

Travis County officials declined to comment, and a spokesman for the Texas governor’s office did not immediately comment.

Last month, Texas Governor Greg Abbott said he had spoken with Musk about a potential plant.

Abbott’s comments came three days after Musk had threatened to move Tesla’s headquarters and future operations to Texas or Nevada after officials in California’s Alameda County, where Tesla’s only U.S. vehicle assembly plant is located, said the plant could not yet reopen because of coronavirus lockdown measures. The plant has since reopened.

Officials with the United Auto Workers union, which represents hourly workers at General Motors Co’s assembly plant in Arlington, Texas, said they believe a Tuesday county meeting will include talks about the possible deal. The union, which has unsuccessfully tried organizing Tesla’s Fremont, California, plant, called on Texas officials to obtain assurances from Tesla about any potential jobs.

(Reporting by Ben Klayman in Detroit and Brad Brooks in Austin, Texas; Editing by Leslie Adler and Jonathan Oatis)

Amtrak Receives $63 Million from FRA for Northeast Corridor Infrastructure Improvements

May 29, 2020 / WIL BALDWIN

State of Good Repair grant financing will help fund projects in New Jersey and Maryland

The Federal Railroad Administration (FRA) has awarded two Northeast Corridor (NEC) grants to Amtrak as part of its $302.6 million in the State of Good Repair grants to help repair and rehabilitate railroad infrastructure and other assets across the country for 12 projects in nine states. Totaling more than $63 million, the two grants will help fund the Portal North Bridge Project and the Winans to Bridge Improvement project.

“Improving infrastructure in this country is vital to strengthening the economy and providing a safer, more reliable travel experience as we look towards recovery,” said Amtrak President and CEO Bill Flynn. “We thank the FRA, and our state and NEC partners for their invaluable support in awarding us these grants.”

A total of $55.1 million of the State of Good Repair grant issued by the Federal Railroad Administration was awarded towards the Portal North Bridge Project to replace the century old two-track swing bridge in Kearny, New Jersey with a fixed span. Serving as a critical link for intercity and commuter customers traveling to or from New York City, the current bridge was used by 450 daily trains with passengers making more than 200,000 daily trips on Amtrak’s intercity and New Jersey Transit’s commuter rail services in 2019.

The new bridge is designed as a 2.44-mile modern fixed structure that will eliminate the failures associated with aging infrastructure that causes delays across the NEC. A higher clearance (more than 50 feet above the Hackensack River), will eliminate the need for the bridge to open, allowing for faster operating speeds (from 60 to 90 mph), improved performance and greater reliability for an upgraded customer experience. Early construction of the new bridge began in Fall 2017 and was completed on time and on budget. NJ TRANSIT is seeking a Core Capacity grant from the Federal Transit Administration that would allow major construction to begin as soon as next year.

The Portal North Bridge Project is a key component of the Gateway Program and is identified as a regional priority in the NEC Commission’s five‐year capital plan.

Additionally, as part of a separate project, Amtrak, in partnership with Maryland Department of Transportation, Maryland Transit Administration (MDOT MTA), is also slated to receive $8 million to rehabilitate and upgrade a five‐mile section of track that is part of the Amtrak‐owned NEC mainline near Baltimore.

The project will restore Track A to 90 mph speeds, up from 60 mph, to shorten trip times, improve ride quality, and provide operational flexibility. The work will include upgrades from Winans to Bridge interlockings, replacing timber ties with concrete, installing heavier rail and laying new ballast. Bridge interlocking is located at the north end of West Baltimore Station and Winans is at the south end of Halethorpe Station. These upgrades will enable high‐speed operations on all four tracks on this segment.

The project will also enable service to be maintained while tracks are taken out of service to allow support for construction elements of the B&P Tunnel Replacement project. This work is included in the Northeast Corridor Commission’s five‐year capital plan as a regional priority. To learn more about these and other critical infrastructure projects Amtrak is working on, visit nec.amtrak.com/readytobuild/.

Other grant awards include Amtrak shared joint applications with Connecticut DOT for the WALK Bridge Replacement in Norwalk, Connecticut and Substation 41 Reconstruction in Kearny, NJ as led by NJ TRANSIT as well as other NEC related projects in New York and Pennsylvania. In addition, grants were awarded to various projects in California, Illinois, Michigan and North Carolina that provide benefits to Amtrak and its Long Distance and/or State-Supported customers.

Next Step for New Generation Interislander Ferries

May 28, 2020 / WIL BALDWIN

KiwiRail is taking the next step to procure a new generation of Cook Strait ferries which will increase the capacity on this vital transport link, and increase its resilience.

A Request for Proposal (RFP) to find a preferred shipyard to build two new ships for the Interislander is being issued today, the next step in the procurement process.

“The new ships will strengthen and enhance the vital transport link between the North and South Islands and represent a once-in-a-generation opportunity to transform the Cook Strait crossing,” Group Chief Executive Greg Miller says. The ferries are extensions of State Highway 1 and the Main Trunk Line across Cook Strait, linking road and rail networks between the two islands.

Currently, Interislander operates a fleet of three ferries, moving some 800,000 passengers and up to $14 billion worth of road and rail freight between the North and South Islands each year.

The $400 million contribution in Budget 2020 has enabled KiwiRail to go out to international tender to build the new ships, which are intended to arrive for service in 2024 and 2025. When the ferries are delivered, it will be over 25 years since New Zealand last introduced a brand-new purpose-built ferry to its fleet.

The $400 million towards the ferries and KiwiRail’s infrastructure at the ports in Wellington and Picton builds upon a $35 million-dollar investment in last year’s Budget for ferry design and procurement work.

The two new ferries will be technologically advanced, have significantly lower emissions, a greater carrying capacity – including rail wagons – and provide an enhanced visitor experience, Mr Miller says.

“On behalf of New Zealanders, we are grateful to the Government for enabling this acquisition,” says Mr Miller. “It is exciting to issue this RFP, to move the project forward and to find a shipyard to partner with KiwiRail to deliver the ships to our specifications, quality and timeline requirements.”

“Only overseas shipyards have the ability to build ferries of the size and standard needed for the Cook Strait. However, the project also involves new infrastructure including terminals, linkspans, and marshalling yards which will create numerous Kiwi jobs in Picton and Wellington. Community engagement has already begun in Picton for the proposed new terminal there.

“We are engaging our Interislander staff in the design of the ferries to ensure the ships are not only great for passengers, but also for those who work on them.

“Our new ferries and the associated port infrastructure will provide greater resilience for this crucial link that unites our country and will serve New Zealand for the next generation and beyond.”

Kiwi Rail Plans $1.2 Billion Investment to Rebuild New Zealand

May 18, 2020 / WIL BALDWIN

The Government’s $1.2 billion rail investment in Budget 2020 will help KiwiRail attract more customers and get more freight on rail, KiwiRail Group Chief Executive Greg Miller says.

Building on the Government’s $1 billion investment in Budget 2019, this second round of funding includes $400 million towards replacing the aging Interislander ferries and $421 million to continue the replacement programme for some of KiwiRail’s oldest locomotives.

The funding also includes $246 million, plus a $148 million top up of the National Land Transport Fund, towards ensuring New Zealand’s rail network, which includes more than 3000km of track, more than 1000 bridges and nearly 100 tunnels, is reliable and resilient.

“I welcome this substantial funding, which is another major boost for rail in New Zealand. For our customers this investment sends a clear signal that rail has a big future and gives them the confidence to get on board,” Mr Miller says.

“Our customers want to make greater use of rail and we’re seeing more road operators reach out for our support as their networks contract. We’re here to help them.”

“The Government’s investment allows us to continue with our locomotive replacement programme and raise the standard of our rail lines, bridges and tunnels across the country. This will enable KiwiRail to offer better and more reliable train services for our customers, and move more of New Zealand’s growing freight task onto rail.

“This funding recognises that rail has a greater role to play in New Zealand’s transport sector, and that it can make a valuable contribution towards lowering our transport emissions, reducing road congestion and saving in road maintenance costs – which benefits our nation as a whole.

Fifteen new Gen 2.3 DL locomotives depart KiwiRail’s Mt Maunganui yard, shortly after arriving at the Port of Tauranga, in 2018.

“The range of track renewal and facility upgrades we are planning will also support our workforce of almost 4000, as well as numerous civil contractors and material supply businesses across the country.”

“I’m very grateful to the Government for this level of support and I know that KiwiRail’s customers will be pleased by this demonstration of our shareholder’s commitment to rail.”

Mr Miller says the $400 million contribution to replacing Interislander’s three aging ferries and necessary landside infrastructure highlights how important the ferry connection is to New Zealand.

“Our Cook Strait ferries are an extension of State Highway 1, moving 800,000 passengers and up to $14 billion worth of road and rail freight between the North and South Islands each year.

“They are a must have for NZ Inc. The two new rail-enabled ferries will be more advanced, have significantly lower emissions and last for the next 30 years.

“This is a once-in-a generation investment and I am thankful for the Government’s support. It gives us the security to go out to international tender to build the ships, which we hope to see arriving on our shores in 2024 and 2025.”

Coastal Pacific crossing the Kahutara River.

Emirates Plans to Cut About 30,000 Jobs Amid Virus Outbreak

May 18, 2020 / WIL BALDWIN

(Reuters) – Emirates Group is planning to cut about 30,000 jobs to reduce costs amid the coronavirus outbreak, which will bring down its number of employees by about 30% from more than 105,000 at the end of March.

The company is also considering speeding up the planned retirement of its A380 fleet, the report added, citing people familiar with the matter.

An Emirates spokeswoman said that no public announcement has been made yet by the company regarding “redundancies at the airline”, but that the company is conducting a review of “costs and resourcing against business projections”.

“Any such decision will be communicated in an appropriate fashion. Like any responsible business would do, our executive team has directed all departments to conduct a thorough review of costs and resourcing against business projections,” the spokeswoman said.

Emirates, one of the world’s biggest long-haul airlines, said earlier this month that it will raise debt to help itself through the coronavirus pandemic, and may have to take tougher measures as it faces the most difficult months in its history.

The state-owned airline, which suspended regular passenger flights in March due to the virus outbreak that has shattered global travel demand, had said that a recovery in travel was at least 18 months away.

It reported a 21% rise in profit for its financial year ending March 31, but said the pandemic had hit its fourth-quarter performance.

It said it would tap banks to raise debt in its first quarter to lessen the impact of the virus on cash flows.

(Reporting by Kanishka Singh in Bengaluru and Alexander Cornwell in Dubai; Editing by Catherine Evans and Jan Harvey)

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