Embraer (NYSE: ERJ) delivered a total of 14 jets in the first quarter of 2020, of which five were commercial aircraft and nine were executive jets (five light and four large). As of March 31st, the firm order backlog totaled USD 15.9 billion.
Historically, Embraer seasonally has fewer deliveries during the first quarter of the year, and in 2020 in particular, the commercial aircraft deliveries in the first quarter were also negatively impacted by the conclusion of the separation of Embraer’s Commercial Aviation unit in January.
During the first quarter, Embraer Executive Jets announced that the new Phenom 300E was granted its Type Certificate by ANAC (National Civil Aviation Agency of Brazil), EASA (European Union Aviation Safety Agency) and the FAA (Federal Aviation Administration). The new Phenom 300E is the recently enhanced version of the Phenom 300 series, which was the most delivered business jet series in the 2010s.
Also in this period, Emgepron, a Brazilian state-owned company linked to the Ministry of Defense through the Brazilian Navy Command, and Águas Azuis, a company created by thyssenkrupp Marine Systems, Embraer Defense & Security and Atech, signed the contract to build four state-of-the-art Tamandaré Class Ships, with deliveries scheduled between 2025 and 2028.
During the scheduled two weeks of suspended operations at the Boeing [NYSE: BA] Philadelphia facility in Ridley Township, the company has been working to restart production with enhanced safety measures. Boeing will resume operations in our production facilities and other areas deemed essential on Monday, April 20. The number one priority is and will continue to be protecting the health and safety of our employees, their families and all of our stakeholders.
Since suspending operations on April 3, Boeing Philadelphia has taken a number of steps:
Enhanced cleaning of the entire facility and implementing improved procedures. We’ve posted signage throughout the facility to help keep enhanced hygiene top-of-mind. Hand sanitization stations have been added at entry points to the site.
Physical distancing practices reinforced. Shift times will be staggered. Virtual meetings will continue, where possible, to reduce face-to-face interactions. Work areas have been spaced farther apart with visual markers displayed to encourage physical distancing. Cafeteria areas will be adjusted to allow for more physical distancing.
Personal mask use. Consistent with recent direction from the state government, employees are required to wear masks or other face coverings in the workplace. Masks will be made available onsite for employees who need one.
Temperature screening will be required for all employees daily before coming to work. Screening stations with no-touch thermal scanners will be set up to accommodate workers who need to check their temperature onsite. Employees who are not required to support operations in our production facilities, and who are able to telecommute and work virtually, will continue to do so.
Boeing Philadelphia site leadership will continue to monitor conditions and new information related to COVID-19, including the latest federal and state health guidelines, so we can continuously implement new safeguards and procedures.
FILE PHOTO: VW hosts photo workshop at Zwickau plant
FRANKFURT (Reuters) – German carmakers including Volkswagen <VOW.DE> and Mercedes-Benz <DAI.DE> will restart production at some German factories next week after the country eased restrictions designed to contain the coronavirus outbreak.
Chancellor Angela Merkel on Wednesday said that Germany has achieved a “fragile intermediate success” in its the fight against the coronavirus and that its emergence from lockdown would begin with the partial reopening of shops next week and schools from May 4.
Unlike Italy and Spain, Germany never banned car production, though factories came to a standstill after authorities restricted the movement of people and ordered the closure of car dealerships, hitting demand.
Volkswagen said it will start producing cars for its core brand in Zwickau, Germany, and in Bratislava, Slovakia, on April 20.
Plants in Russia, Spain, Portugal and the United States will ramp up production from April 27 onwards, joined by factories in South Africa, Argentina, Brazil and Mexico in May.
“With the decisions by the federal and state governments in Germany and the loosening of restrictions in other European states, conditions have been established for the gradual resumption of production,” Ralf Brandstaetter, Chief Operating Officer of the Volkswagen brand, said in a statement.
The carmaker has retooled production to ensure that workers keep 1.5 metres apart. Other measures include the staggering of shifts and lunch breaks, plus steps to change worker interaction in VW’s supply chain.
Bernd Osterloh, Chairman of the company’s Works Council, said: “In the light of the pandemic, we need to adapt our routines. One answer is our new agreement on health protection. With about 100 measures, we are keeping the risk of infection at Volkswagen as low as possible.”
In China, where a Volkswagen has already implemented health measures, 32 of the 33 plants have resumed production and no coronavirus infections among employees have been reported.
Mercedes-Benz parent Daimler said that its plants in Hamburg, Berlin and Untertuerkheim will resume production next week. Its Berlin plant makes engine-management systems for vehicles sold in China.
Production will initially start in a one-shift system, Daimler said, with plants in Sindelfingen and Bremen also making preparations to ramp up production.
(Reporting by Edward Taylor and Jan Schwartz; Editing by David Goodman)
CHICAGO, April 15, 2020 /PRNewswire/ — Oscar Munoz, Chief Executive Officer, and J. Scott Kirby, President, today issued the following message to nearly 100,000 United Airlines (NASDAQ: UAL) employees:
To our United Family:
We hope all is well with you and your family. Two weeks ago, we hosted a virtual townhall and it was a valuable opportunity for us to connect with you all. And we’ve been really pleased with the response, more than 50,000 of you tuned in live or watched the broadcast on demand.
At the townhall, we discussed the impact of your calls and letters to Congress as they debated financial support for the airline industry. Washington heard you loud and clear, passing vital legislation that will provide commercial airlines with a total of $50 billion worth of grants and loans. We are grateful for the bipartisan cooperation displayed by leaders in the Congress and Administration — and appreciative of the critical role that you played. The thousands of letters and messages you sent, capturing the spirit of our United family and what our service means to our customers and communities, made all the difference in the world. We will need that spirit more than ever as we set our sights on the rest of 2020 and beyond.
The challenge that lies ahead for United is bigger than any we have faced in our proud 94-year history. We are committed to being as direct and as transparent as possible with you about the decisions that lay ahead and what impact they will have on our business and on you, the men and women of United Airlines.
Let’s start with the near-term. We now expect United to receive approximately $5 billion from the federal government through the Payroll Support Program under the CARES Act – to be used to protect the paychecks of our United employees. This government support does not cover our total payroll expense, but we’re keeping our promise that there will be no involuntary furloughs or pay rate cuts for U.S. employees before September 30. And, payroll only represents about 30 percent of our total costs. Fixed operating and non-payroll costs like airport rent, supplies and infrastructure are significant and not going away. That’s why we’ve been so aggressive in reducing our schedule, slashing capital expenditures, scaling back our work with vendors and consultants and cutting executive salaries in half.
We’re planning to go even further to reduce costs. This weekend, we’ll load a revamped schedule that will further reduce our capacity to about 10 percent of what had been planned for May at the beginning of this year. We expect to announce similar reductions to the June schedule in the next few weeks. We have now essentially redesigned our network to be down 90 percent while complying with the CARES Act and maintaining connectivity among nearly all our domestic destinations. And these May and June schedule reductions will have direct consequences for our frontline employees in terms of total hours worked. Those work groups can expect to hear more details from their leaders soon.
The more flexibility we have from a payroll perspective, the better. So, all work groups can expect to see a continued emphasis on payroll cost cutting options over the next few weeks including new voluntary leave offerings and voluntary separation programs. For those who are eligible, please consider signing up for voluntary COLA and ANP days. We’re grateful to the more than 20,000 employees who have already signed up. Your sacrifice is both deeply appreciated and important to our company’s future.
These schedule changes reflect the stark reality of our situation – and unfortunately, it’s something that even legislation as large as the CARES Act can’t fix. Travel demand is essentially zero and shows no sign of improving in the near-term. To help you understand how few people are flying in this environment, less than 200,000 people flew with us during the first two weeks of April this year, compared to more than 6 million during the same time in 2019, a 97 percent drop. And we expect to fly fewer people during the entire month of May than we did on a single day in May 2019.
The historically severe economic impact of this crisis means even when travel demand starts to inch back, it likely will not bounce back quickly. We believe that the health concerns about COVID-19 are likely to linger which means even when social distancing measures are relaxed, and businesses and schools start to reopen, life won’t necessarily return to normal. For example, not all states and cities are expected to re-open at the same time. Some international travel restrictions will remain in place. Meeting planners and tour operators will do their best to accommodate people looking to avoid large crowds. So, while we have not yet finalized changes to our schedule for July and August, we expect demand to remain suppressed for the remainder of 2020 and likely into next year.
So, let us end where we began, the government funding we expect to receive soon is helpful in the near-term because we can protect our employees in the U.S. from involuntary furloughs and pay rate cuts through the end of September. But the challenging economic outlook means we have some tough decisions ahead as we plan for our airline, and our overall workforce, to be smaller than it is today, starting as early as October 1.
Throughout this crisis, we have been candid and upfront with you. And today is no different. We appreciate the partnership and open dialogue we have with all of you as we confront this extraordinary situation that has had an unprecedented impact on our families and our company. We promise to continue to stay in close touch – and will continue to be as transparent as possible – in the weeks and months ahead.
Stay safe. Stay healthy. And please continue to take good care of our customers and each other. It’s because of you that we remain proud to be United Together.
Gogo AVANCE L5 provides the fastest and most reliable 4G air-to-ground high-speed internet coverage over North America for business aircraft today
Retrofit available for Learjet 40, Learjet 45, Learjet 70 and Learjet 75 aircraft throughout Bombardier’s growing service network, which has unparalleled OEM expertise to enhance the ownership experience for customers
This high-speed connectivity is already available on new Learjet aircraft, and will be an option on the new Learjet 75 Liberty business jet
Bombardier Aviation is bringing faster connectivity to its in-service Learjet fleet as part of a continuing commitment to this legendary platform. Gogo Business Aviation’s next-generation, 4G air-to-ground (ATG) internet system, Gogo AVANCE L5, has been an available option on new Learjet aircraft since last year.
Bombardier is now offering customers the high-performance 4G in-cabin Wi-Fi system as a retrofit for in-service Learjet 40, Learjet 45, Learjet 70 and Learjet 75 aircraft. Customers can have the system installed at all Bombardier Service Centres and Authorized Service Facilities throughout the United States.
“Learjet aircraft are renowned productivity tools, and this enhancement ensures that our customers have the connectivity they need to maximize their time in the air,” said Michael Anckner, Vice President, Worldwide Sales, Learjet Aircraft and Corporate Fleets, Bombardier Business Aircraft. “With various upgrades available for our large fleet of in-service aircraft and the recent unveiling of our value-added Learjet 75 Liberty aircraft, there’s never been a better time to own a Learjet.”
The new and significantly faster 4G service uses Gogo AVANCE L5, which is lightweight and compact, accesses the Gogo Biz 4G ground network of more than 250 towers and delivers seamless connectivity over the continental U.S. and large parts of Canada and Alaska. Designed specifically for business aircraft, the system offers audio and video streaming as well as faster web surfing for a vastly improved user experience over previous-generation technology.
The iconic Learjet brand is synonymous with excellence in aviation, with more than 2,000 Learjet aircraft in service around the world. This fleet is a testament to the longevity and reliability of this platform, while the upcoming Learjet 75 Liberty signals a strong future for the world’s best light jet.
Bombardier is growing its worldwide support network, including a new service centre at Miami-Opa Locka Executive Airport and the recent addition of two U.S. line maintenance stations in Teterboro and Van Nuys. In addition to providing this 4G connectivity upgrade to the Learjet fleet, Bombardier is also offering the latest update to the popular Garmin G5000 avionics suite aboard Learjet aircraft, which was recently certified by the U.S. Federal Aviation Administration and brings many workload-reducing improvements to the cockpit.
The Learjet 75 Liberty aircraft is on track to enter service in mid-2020. Its spacious cabin features a six-seat configuration that gives light jet passengers unprecedented freedom to stretch out. A standard pocket door delivers a quiet, productive flight coupled with the comfort of Bombardier’s signature smooth ride.
The Learjet 75 Liberty aircraft has a range of 2,080 nautical miles, able to connect Las Vegas to New York, Seattle to Washington, D.C., and Mexico City to San Francisco, nonstop.* This aircraft has the same operating costs as its competitors in the light jet category while offering the most spacious cabin, the fastest speed, the longest range and the smoothest ride. It is also a step up from other light jets in terms of safety standards, certified to the FAA’s more stringent Part 25 regulations, applicable to commercial airliners, unlike other light jets certified to Part 23 regulations.
Alstom will supply 17 additional Citadis trams to the Strasbourg Transport Company (CTS) and the Eurometropole of Strasbourg for the sum of €52 million. This order will complete the fleet of 63 trams delivered by Alstom between 2003 and 2019, and confirms a partnership of almost 20 years between Alstom and CTS. The last option exercise, signed in March 2016, was for 10 Citadis trams for the extensions of lines A and D.
These 17 new trams will reinforce the existing lines, including line D, which serves the city centre of Kehl in Germany. The Citadis tramway is the first to cross a border in France and is approved according to the BOStrab, the German federal decree on the construction and operation of trams in Germany.
“With this new order, CTS is the French customer that will own one of the largest Citadis tram fleets with a total of 80 trainsets ordered. We are very proud to be continuing this partnership initiated in 2003, proving that the Citadis range meets the evolving needs of our customers,” says Jean-Baptiste Eyméoud, Managing Director of Alstom in France.
The Citadis trams for Strasbourg are 45 metres long and have a capacity of 288 passengers. They are fitted with LED lighting and all-glass doors to enhance comfort and safety for passengers. Complying with the latest standards, the trams are equipped with double doors accessible to PRMs (People with Reduced Mobility), wider seats and areas reserved for wheelchair and stroller users.
These trams will be designed and manufactured mainly in France: La Rochelle (design and assembly of the trainsets), Le Creusot (bogies for the intermediate modules), Tarbes (components of the traction chain), Villeurbanne (electronic equipment) and Saint-Ouen (design). The bogies situated under the driver cabins will be manufactured at Alstom’s site in Salzgitter, Germany.
In total, more than 2,600 Citadis trams have been sold to more than 50 cities in 20 countries.
FILE PHOTO: A traveler checks her baggage at the Southwest Airlines terminal at LAX airport in Los Angeles
(Reuters) – The U.S. Federal Aviation Administration says it should have done a better job of ensuring Southwest Airlines Co <LUV> had certified completion of maintenance on 88 used Boeing 737 jets, as noted in a report by the U.S. Transportation Department’s Inspector General released on Tuesday.
Budget-friendly Southwest bought the planes in question between 2013 and 2017 from 16 foreign carriers.
The final report, first seen by Reuters, said Southwest operated more than 150,000 flights carrying 17.2 million passengers on the jets without confirmation that required maintenance had been completed.
The report said the FAA has not “effectively overseen Southwest Airlines’ systems for managing risks” and made 11 recommendations to improve oversight, including retraining inspectors and developing better control over maintenance records and inspector guidance on evaluating air carrier safety culture.
While the U.S. commercial airline industry is considered safe, with only one fatality in recent years, the FAA is under heightened scrutiny by lawmakers over its relationship with the industry after two crashes overseas on the newer Boeing Co <BA> 737 MAX killed 346 people and led to that aircraft’s global grounding.
“Given the significant unresolved safety concerns that FAA has identified at Southwest Airlines, it is clear that the agency is not yet effectively navigating the balance between industry collaboration and managing safety risks at the carrier,” the report said.
The FAA said in a response included with the report it concurred with all 11 recommendations and the inspector general’s conclusion that its office overseeing Southwest did not perform in accordance with existing guidance by allowing the 88 planes to enter service and that it “lacked a comprehensive conformity inspection for used aircraft.”
Southwest told Reuters on Tuesday that eight of the 88 jets remain out of service until needed repairs are completed and that it disagreed with the report’s findings.
The report chided the FAA, saying the agency “accepted the air carrier’s justification that the issues identified were low safety risks.”
The FAA noted it changed the leadership of its office that oversees Southwest and “continues to address deficiencies in the work functions and culture.” The agency has agreed to ensure Southwest “complies with regulatory requirements that the 88 previously owned aircraft conform to U.S. aviation standards.”
Last month, the Wall Street Journal published an article on a draft of the inspector general report.
The report also said the FAA violated its own guidance in addressing noncompliance by Southwest on baggage weight and balance data. The FAA agreed to ensure Southwest complies with requirements.
On Jan. 10, the FAA said it was seeking to impose a $3.92 million fine on Southwest for alleged weight infractions on 21,505 flights on 44 aircraft between May 1, 2018 and Aug. 9, 2018.
Southwest has said it is working with the FAA to demonstrate the effectiveness of its controls and seek a resolution on the proposed penalty.
Southwest shares closed up 0.9% on Tuesday, off intraday highs.
(Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago; Editing by David Gregorio and Matthew Lewis)
FILE PHOTO: A Southwest Airlines Boeing 737 plane sits on the runway waiting to take off at LAX airport in Los Angeles
Travellers in the US are set to enjoy more choice in the air, with the formal launch of Breeze Airways announced last week.
Previously known by the code name “Moxy”, the new airline is the brainchild of experienced airline executive David Neeleman, who is renowned for having established four successful airlines during his career.
With the experience of establishing the likes of Morris Air, WestJet, Jet Blue and Azul, each of Neeleman’s new entrants are notable for introducing a variety of innovations to the market.
Today considered commonplace; leading customer experience improvements include e-ticketed bookings, inflight TV streaming and the opening up of routes to city pairs previously not served by existing carriers.
WASHINGTON (Reuters) – The U.S. Transportation Department’s Office of Inspector General said on Monday it will audit Federal Aviation Administration pilot training requirements for U.S. and foreign air carriers after two deadly crashes of Boeing’s <BA> 737 MAX.
The audit will also review international civil aviation authorities’ requirements for carriers’ pilot training regarding the use of flight deck automation.
Pilots have been harshly critical of Boeing’s decision not to disclose details of a new automation system – known as the Maneuvering Characteristics Augmentation System, or MCAS – that has been linked to both fatal crashes.
The Inspector General cited a report by Indonesia’s Lion Air that “responses to erroneous activations of MCAS contributed to the crash, raising international concerns about the role of pilot training.”
The report said Boeing’s safety assessment assumed pilots would respond within three seconds of a system malfunction. But on the fatal flight and one that experienced the same problem the previous evening, it took both crews about eight seconds to respond.
Boeing declined to comment on the new review.
The FAA said it would cooperate with the inspector general’s review. “Raising and harmonizing pilot training standards across the globe are among the FAA’s top aviation safety priorities,” the FAA said. “We continue to pursue expanded conversations among the world’s aviation regulators to identify ways to enhance international aviation safety through robust pilot training programs.”
Boeing has proposed new simulator training for pilots on a series of scenarios before they are allowed to resume 737 MAX flights.
The MAX is not expected to be freed to fly until late April at the earliest. In March, the department’s IG said it would audit the FAA’s certification of the Boeing 737 MAX.
The Trump administration on Monday proposed an additional $30 million in it 2021 budget “to improve aviation oversight, following recommendations from the Boeing 737 MAX investigations.”
The funding would support 13 new full-time positions for the creation of an office mandated by Congress to oversee the FAA’s delegation of some certification tasks to Boeing and other plane-makers. The FAA would also use some of the funds for data collection and for “technological advances that we use to assess safety data,” Deputy FAA Administrator Dan Elwell said.
(Reporting by David Shepardson; Editing by Dan Grebler)
FILE PHOTO: Aerial photos show Boeing 737 Max airplanes on the tarmac in Seattle
CHICAGO, Feb 5 (Reuters) – United Airlines Holdings Inc announced on Wednesday an agreement to purchase a flight training academy in Phoenix in a move aimed at bolstering its pilot pipeline as the industry faces a global shortage.
To address a tight U.S. labor market created by years of slow pilot hiring, a wave of pending retirements and new rules that in 2013 increased the number of required training hours, U.S. airlines have been taking steps to attract young aviators.
Chicago-based United, which is looking to hire more than 10,000 pilots by 2029, will be the first major U.S. carrier to run its own academy.
“We think this program will alleviate any shortage we would have had and that’s its purpose,” Curtis Brunjes, United’s managing director of pilot strategy, told reporters.
The school, currently operating as Westwind School of Aeronautics, will be renamed United Aviate Academy in September.
United expects approximately 300 graduates in 2021 and wants to expand capacity to accommodate 500 graduates per year, Brunjes said, noting that the academy is among the airline’s most aggressive steps on pilot hiring since the 1960s.
One area of focus at the school will be training for loss of control incidents, a leading cause of plane disasters, that goes beyond the current U.S. Federal Aviation Administration requirements.
Some of the enrollees will come from Aviate, a recruitment program that United launched last year offering students and pilots from 15 schools and regional carriers a path to a job at the major.
American Airlines Group Inc and Delta Air lines Inc have similar career programs.
United – which plans to design the academy’s curriculum in concert with the Air Line Pilots Association, International – is offering financing options for training and will also launch a scholarship program focused on women and minorities.
It did not disclose financial details of the purchase, with Brunjes saying only that the company paid “more than asset value, but not hugely more.”
The financial benefit down the line will be ensuring that regional carriers, which operate a significant amount of U.S. airlines’ domestic capacity at a lower cost, have enough pilots to fly the routes that United wants to contract.
In recent years, regional carriers have had to double salaries and offer sign-on bonuses to attract pilots to the field, driving up costs.
Boeing Co expects 800,000 new pilots will be needed over the next 20 years to meet growing demand for air travel.
(Reporting by Tracy Rucinski; Editing by Steve Orlofsky)
