Tag: holdings (Page 6 of 9)

EgyptAir Adds More Boeing 787s to Fleet as Dreamliners Deliver 23% Fuel Boost

November 18, 2019 / WIL BALDWIN

Egyptian flag carrier to lease two more 787-9 jets from leading lessor AerCap
Airline joins other operators in growing their Dreamliner fleet after achieving eye-opening fuel efficiency improvement

EGYPTAIR is growing its Boeing 787 Dreamliner fleet with an agreement to lease two more airplanes from AerCap, the airline announced today at the Dubai Airshow. The Egyptian flag carrier unveiled it had selected the super-efficient airplane to modernize its fleet during the last Dubai Airshow in 2017.

The carrier began operating the 787-9 this year, deploying the Dreamliner on new direct flights from its hub in Cairo to Washington, D.C., and other cities. EGYPTAIR says the 787s have delivered on the Dreamliner’s promise of unmatched efficiency, providing a 23-percent reduction in fuel consumption compared to the airplanes they replaced.

“The Boeing 787 Dreamliner has outperformed our expectations, helping us significantly reduce our fuel use and emissions, while bringing comfort to our passengers,” said Ahmed Adel, chairman and CEO of EGYPTAIR Holding Company. “We look forward to growing our network with additional 787-9 airplanes and flying more passengers to their destinations at an affordable cost.”

To maintain its fleet of 787’s, the carrier also announced agreements with Boeing this week that would provide EGYPTAIR with global access to critical aircraft components, including a Landing Gear Exchange and Quick Engine Change kit solutions.

EGYPTAIR joins other 787 operators in expanding its commitment to the Dreamliner program after experiencing the airplane in revenue service. More than half of all 787 customers have placed repeat orders for the airplane, helping the Dreamliner become the fastest-selling widebody airplane in history. The biggest 787 customer is Dublin-based AerCap with 117 airplanes owned and on order. AerCap will lease a total of eight 787’s to EGYPTAIR.

Speaking at the Dubai Airshow, AerCap CEO Aengus Kelly said, “AerCap is very proud to continue to support EGYPTAIR’s widebody fleet renewal program and sustainable growth ambitions. We thank our friends and partners at EGYPTAIR for their continued confidence in AerCap and we look forward to working with the EGYPTAIR and Boeing teams as these aircraft deliver.”

“EGYPTAIR has shown a strong commitment to growing its business in a sustainable and profitable manner and we are thrilled that the 787 Dreamliner is helping the airline realize their vision. There is no better endorsement of the 787’s efficiency, range and passenger comfort than an operator returning for more aircraft,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing, The Boeing Company. “Of course, this would not be possible without AerCap and its market-leading portfolio that gives carriers great flexibility in operating an optimized fleet.”

At 63 meters (206 feet) long, the 787-9 can fly 296 passengers, in a typical two-class configuration, up to 7,530 nautical miles (13,950 kilometers). The airplane is 6 meters longer than the original Dreamliner and is capable of carrying 48 more passengers with increased range. The 787 Dreamliner family has won more than 1450 orders from over 80 customers on six continents.

Amazon’s Rising Air Shipments Fly in the Face of Climate Plan

November 6, 2019 / WIL BALDWIN

LOS ANGELES (Reuters) – Amazon.com Inc <AMZN> Chief Executive Jeff Bezos has plans to slash greenhouse gas emissions from the online retailer’s delivery operations.

Yet the company’s use of airplanes – the most climate-damaging mode of transportation – is on the rise, according to data provided to Reuters.

Amazon Air’s U.S. volume has risen steadily since its 2016 launch, according to an analysis of Department of Transportation data by Cargo Facts Consulting https://www.cargofactsconsulting.com, a Luxembourg-based advisory firm with a global staff and more than four decades of history.

It crunched data from Air Transport Services Group Inc <ATSG> and Atlas Air Worldwide Holdings <AAWW>. Both supply planes and pilots for Amazon Air.

In July, Amazon Air flew 136 million lbs of goods in the United States, according to the data. That was up 29% from the year earlier and just 9 million lbs short of December 2018, when the peak holiday shipping season was in full swing.

For a graphic on more Amazon Air flights, click the link below:

https://fingfx.thomsonreuters.com/gfx/editorcharts/AMAZON-AIRPLANES/0H001QXH999X/eikon.png

Bezos has said Amazon will cut its use of airplanes as it builds more local warehouses and fills them with goods that it can deliver to customer doorsteps in one day, or even one hour.

But for the time being, Amazon’s air shipments are climbing as it speeds up deliveries to lure customers and pressure rivals like Walmart Inc <WMT> and Target Corp <TGT>.

In April, Amazon started offering no-minimum purchase, one-day free shipping to members of its Prime subscription service.

In the latest quarter, it saw delivery costs soar, and warned the holiday quarter would see costs for one-day shipping alone spike to $1.5 billion.

The Seattle e-retailer, which sends 10 billion packages a year, declined to say what percentage of its shipments travel by plane or give specific examples of how the latest drive to shave time off its standard two-day shipping affected air transport.

Last month, Amazon said its CO2 emissions in 2018 were 44.4 million metric tons and set a goal to be net carbon neutral by 2040.

“We expect the percent of total shipments to customers utilizing air transportation to reduce from year to year as we significantly increase one and same day shipments,” Amazon spokesman Sam Kennedy said, when asked about Cargo Facts’ data.

DELIVERY WARS

A standard package flown on a plane in the United States creates an estimated 6-10 times more CO2 emissions than one traveling by truck, said Jacques Leonardi, a senior research fellow in freight, logistics and sustainable distribution at the University of Westminster in London.

Amazon Air leases 47 planes and is expected have 50 by the end of the year. It operates roughly 110 daily flights in the United States and around 20 per day in Europe, according to Cargo Facts.

In June, shortly after FedEx Corp <FDX> said its planes would stop shuttling packages for the online retailer, Amazon Air announced plans to have 70 planes on lease by 2021.

But Amazon says it is getting closer to customers with an expanding network of well-stocked warehouses. Those local fulfillment centers underpin the company’s one-day and same-day delivery services.

In a news release issued Monday, Amazon said those options were “better for the planet” because there aren’t many miles in the trip to customer doorsteps.

Because those time windows are so tight, “you are eliminating the possibility of air transportation,” Amazon’s Bezos said in September. “Even though it’s counterintuitive, the fact of the matter is that shorter delivery times end up being less carbon-intensive than longer delivery times.”

Products from most of Amazon’s 158 U.S. distribution centers can be shipped to 65% of the population in one day, said Marc Wulfraat, president of supply chain consultancy MWPVL International.

Items like footwear, jewelry, auto parts and niche electronics come from 23 distribution centers that span the country – and will likely need to be moved by air for next-day delivery, Wulfraat said.

Amazon also depends on United Parcel Service Inc <UPS> for air shipments. The Atlanta-based delivery company has seen a bump in that business since Amazon began expanding free one-day delivery this spring, UPS executives and analysts said.

Domestic next day air volume at UPS surged more than 30% in the second quarter and was up nearly 24% in the third quarter – fueled by faster e-commerce shipping speeds and rival FedEx’s breakup with Amazon this summer.

“It’s not all from FedEx,” said Satish Jindel, the founder of logistics advisory firm ShipMatrix, noting that express and deferred air services revenue at UPS surged $852 million in the second and third quarters.

Amazon’s business was worth about $900 million to FedEx prior to their split, Jindel said. Express, which includes air shipments, accounted for roughly $540 million of that, he said.

(Reporting by Lisa Baertlein in Los Angeles; Editing by Mark Potter)

United, Avianca and Copa’s South American Deal Delayed as They Mull Fourth Partner

October 28, 2019 / WIL BALDWIN

BRASILIA, Oct 28 (Reuters) – A proposed joint venture between United Airlines, Colombia’s Avianca Holdings and Panama’s Copa Holdings has been delayed due to the potential inclusion of a fourth partner, as well as problems at Avianca, the CEOs of two of the companies said.

United Airlines said last week it wants to include Brazil’s Azul SA, in which it already has a stake, in the planned tie-up with Copa and Avianca, the latest play by a U.S. carrier for a region expected to have significant air-travel growth in coming decades.

The three airlines had said in November 2018 they would file for U.S. antitrust approval “in the near term” in order to coordinate routes between South America and the United States, a bold move to expand their market share in the region. At the time, the carriers said they aimed to implement the agreements in 2020.

But almost a year after United, Copa and Avianca announced the preliminary joint venture plan, they have yet to file any paperwork with the U.S. Department of Transportation, seeking antitrust immunity. Now, the regulatory process may begin as late as next year, they said.

Copa Chief Executive Officer Pedro Heilbron said the group expects to file in early 2020, while Avianca CEO Anko van der Werff, said it would file between late 2019 and early 2020. Both spoke to Reuters in separate interviews on Monday on the sidelines of the ALTA Airline Leaders’ Forum in Brasilia.

Both said there was a delay on the original timeline.

United did not comment on a delay but said it planned to complete the application later this year or early next year. Azul had no comment other than saying it was “always looking for opportunities with its partners.”

The potential inclusion of Azul, which may be in the early stages of negotiations, has been one reason for the timetable slipping.

“Quite frankly, really completely open and honest, we haven’t had many discussions,” van der Werff said. “I personally haven’t had even one real, serious discussion at the CEO level about when to include and what to include.”

Both executives said they want Azul to be part of the joint venture – Brazil is by far the largest aviation market in the region – but its inclusion makes negotiations more difficult.

“It almost doubles the level of complexity,” Heilbron said.

Avianca has also gone through corporate turmoil. In May, United Airlines ousted the chairman and controlling shareholder at Avianca, revamping leadership.

“We should have filed with regulators this year but everything got delayed because of what has happened at Avianca,” Heilbron added.

(Reporting by Marcelo Rochabrun in Brasilia Additional reporting by Tracy Rucinski in Chicago Editing by Matthew Lewis and Sandra Maler)

Azul Eyes Partnership with United, Avianca, Copa

October 14, 2019 / WIL BALDWIN

SAO PAULO (Reuters) – Brazil airline Azul SA said on Monday that it is in discussions to join a planned partnership with United Airlines, Avianca Holdings and Copa Holdings for flights between the United States and Latin America.

The three airlines announced their plan to coordinate routes in November 2018, but have yet to receive regulatory approval to go ahead. United owned 8.2% of Azul’s preferred shares last month, according to the Brazilian airline’s website.

(Reporting by Marcelo Rochabrun)

E2-195 plane with Brazil’s No. 3 airline Azul SA logo is seen during a launch event in Sao Jose dos Campos

Boeing Invests in Human Spaceflight Pioneer Virgin Galactic

October 8, 2019 / WIL BALDWIN

– Boeing and Virgin Galactic enter strategic partnership to transform commercial space travel and mobility

– Latest investment to date by Boeing HorizonX Ventures organization

Boeing [NYSE: BA] is investing $20 million in Virgin Galactic, a vertically integrated human spaceflight company. The companies will work together to broaden commercial space access and transform global travel technologies.

“Boeing’s strategic investment facilitates our effort to drive the commercialization of space and broaden consumer access to safe, efficient, and environmentally responsible new forms of transportation,” said Brian Schettler, senior managing director of Boeing HorizonX Ventures. “Our work with Virgin Galactic, and others, will help unlock the future of space travel and high-speed mobility.”

To date, Virgin Galactic has invested $1 billion of capital to build reusable human spaceflight systems designed to enable significantly more people to experience and utilize space. In July, the company announced its intent to become a publicly-listed entity via a business combination with Social Capital Hedosophia Holdings Corp. The Boeing investment will be in return for new shares in Virgin Galactic and is therefore contingent on the closing of that transaction, which is expected to close in the fourth quarter of 2019, and any such investment will be in the post-business combination company.

This investment brings together two companies with extensive experience in the space industry. Virgin Galactic is a pioneer of commercial human space flight and is the first and only company to have put humans into space in a vehicle built for commercial service, having built and flown a Mach 3 passenger vehicle. Through its manufacturing and development capabilities, Virgin Galactic can design, build, test, and operate a fleet of advanced aerospace vehicles. Boeing has unsurpassed experience transporting people to orbit and building and operating large structures in that challenging environment. A part of every U.S. manned space program, Boeing serves as NASA’s prime contractor for the International Space Station (ISS) and is preparing the new, reusable, Starliner space capsule for launch to the ISS.

“This is the beginning of an important collaboration for the future of air and space travel, which are the natural next steps for our human spaceflight program,” said Sir Richard Branson, founder of Virgin Galactic. “Virgin Galactic and Boeing share a vision of opening access to the world and space, to more people, in safe and environmentally responsible ways.”

Boeing Defense, Space & Security President and CEO Leanne Caret, said “the unique expertise of our companies stretches from points all around the world to the deepest reaches of space. Together we will change how people travel on Earth, and among the stars, for generations to come.”

George Whitesides, CEO of Virgin Galactic, noted: “we are excited to partner with Boeing to develop something that can truly change how people move around the planet and connect with one another. As a Virgin company, our focus will be on a safe and unparalleled customer experience, with environmental responsibility to the fore.”

Additional information on specific projects to be pursued will be shared in the future.

Avianca Exchanges $475 mln in Bonds, Gets United Funding

September 12, 2019 / WIL BALDWIN

BOGOTA, Sept 12 (Reuters) – Latin American airline Avianca announced the exchange of $475.2 million in bonds on Thursday, part of a plan to change its capital structure amid ongoing financial problems and enough to receive additional financing from United Airlines.

In a statement to Colombia’s financial regulator, Avianca said it would extend the deadline for bond holders to exchange their paper until Sept. 25, in a bid to exchange a total of $550 million worth of bonds coming due next year.

Investors can exchange the bonds for others also coming due in 2020, but with a $50 bonus per $1,000.

United Airlines and Kingsland Holdings Limited, which between them control Avianca, said in a joint statement that results of the exchange thus far were sufficient for it to give the airline up to $250 million in additional financing.

“We are also pleased to confirm that this achievement is sufficient to satisfy United’s requirement for the exchange of these May 2020 bonds, regarding our previously announced offer, together with Kingsland, to loan $250 million to Avianca Holdings,” said John Gebo, senior vice president of alliances for United Airlines.

“Our loan remains contingent on certain other conditions being met by Avianca Holdings, including certain commitments and waivers made by other stakeholders,” Gebo said.

United launched a management overhaul at Avianca in May, removing top shareholder German Efromovich from controlling the cash-strapped airline.

(Reporting by Nelson Bocanegra Writing by Julia Symmes Cobb; Editing by Tom Brown)

Avianca Advances Plan to Manage Outstanding Liabilities

July 22, 2019 / WIL BALDWIN

BOGOTA, Colombia, July 22, 2019 /PRNewswire/ — Avianca Holdings S.A. (NYSE: AVH) today announced that, in connection with its previously announced re-profiling plan for its capital structure, the company has temporarily deferred payments on certain long-term leases and on payment of principal on certain loan obligations. Avianca Holdings has engaged in discussions with its main strategic lenders and other creditors to establish terms that will preserve current liquidity levels and enable Avianca Holdings to advance its re-profiling plan, which is aimed at strengthening the company’s financial position. Over the last two weeks, members of Avianca Holdings’ senior management team have met with more than 50 of Avianca Holdings’ strategic lenders and other creditors with the objective of reaching an agreement on the terms and conditions of the proposed deferrals. Importantly, obligations related to Avianca Holdings’ day-to-day operations remain current, and such operations, including flight schedules and other ordinary course operations, will remain unaffected.

Avianca Holdings affirms that it is current on all existing interest obligations and that Avianca Holdings actively seeks to arrive at a mutually satisfactory agreement with its strategic lenders and other creditors for a short-term deferral of principal amortization payments, as well as extensions of its credit facilities. Avianca Holdings intends to resume scheduled principal payments once these agreements have been successfully reached, as Avianca Holdings’ proposal is for all creditors to be paid in full, including principal and interest.

In connection with its re-profiling program, Avianca Holdings today made a separate announcement regarding an exchange offer for its outstanding 8.375% Senior Notes due 2020. Avianca Holdings is current on its interest obligations with respect to its outstanding senior notes and is not otherwise in default on its outstanding 2020 Senior Notes.

Avianca Holdings has the full support in this decision of its Board of Directors. Since May 24, 2019, Kingsland Holdings, through its ownership of ordinary shares of Avianca Holdings and authority to vote the ordinary shares of Avianca Holdings owned by BRW Aviation LLC, has effective control of Avianca Holdings. As previously announced, United Airlines and Kingsland Holdings have indicated that they would be willing to offer new financing to Avianca, if required and requested, of up to $250 million, provided that certain commitments are assumed by other interested parties.

With the announced temporary suspension of principal payments, as well as the previously announced proposed financing by United Airlines and Kingsland Holdings, and the continued implementation of Avianca Holdings’ 2021 transformation plan, Avianca Holdings expects to strengthen its cash balances in the near future, at which time, Avianca Holdings will resume normal payment of its obligations. Furthermore, Avianca Holdings has stated that the outstanding 2019 Colombian Peso-denominated corporate bond issued by Aerovías del Continente Americano – Avianca S.A. is not part of the deferral program and that such bond will be paid in accordance with its terms.

About Avianca Holdings
Avianca is the commercial brand that identifies the passenger, cargo transportation airlines and on ground services integrated in the Company with a team of more than 21,000 employees. The terms “Avianca Holdings” or “the Company” refer to the consolidated entity. The original source-language text of this announcement is the official, authoritative version, Translations are provided as an accommodation only, and should be cross-referenced with the source-language text, which is the only version of the text intended to have legal effect.

Pioneer Railcorp Shareholders Approve Merger with BRX

July 19, 2019 / WIL BALDWIN

PEORIA, Ill., July 19, 2019 /PRNewswire/ — Pioneer Railcorp (OTC: PRRR, “Pioneer”), a railroad holding company that owns short-line railroads and several other railroad-related businesses including a railroad equipment company and a contract switching services company, today announced that its shareholders have approved the previously announced definitive merger agreement with BRX Transportation Holdings, LLC (“BRX”), an entity formed by Brookhaven Rail Partners (“Brookhaven”), Related Infrastructure (“Related”) and Stephens Capital Partners LLC (“Stephens”). The proposal to approve the merger agreement and the transactions contemplated thereby was approved with voting results as follows:

Under the terms of the merger agreement, BRX will acquire through merger all of the outstanding shares of Pioneer’s Class A common stock. Shareholders other than Heartland will receive $18.81 per share in cash and the Heartland shares will be cancelled without consideration.

Consummation of the merger remains subject to various closing conditions, including operating performance by Pioneer within a specified working capital floor and debt ceiling. Subject to satisfaction of the closing conditions, the transaction is expected to close in late July 2019. Upon closing of the transaction, Pioneer will become a wholly-owned subsidiary of BRX and its Class A common stock will cease trading on the OTC Markets.

Arnold & Porter is acting as legal advisor to BRX in this transaction. BMO Capital Markets is serving as exclusive financial advisor to Pioneer in connection with this transaction and Briggs and Morgan, P.A. is acting as Pioneer’s legal advisor.

About Pioneer
Pioneer Railcorp is the parent company of 15 short-line common carrier railroad operations, an equipment leasing company, two service companies and a contract services switching company. Pioneer and its subsidiaries operate in the following states: Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Michigan, Mississippi, Ohio, Pennsylvania and Tennessee. For more information on Pioneer, please visit www.Pioneer-Railcorp.com

About Brookhaven
Brookhaven Rail Partners is an affiliate of Denver-based Brookhaven Capital Partners, a privately held, real estate and infrastructure investment and management firm. Brookhaven and its principals have a 25-year track record of investing in, operating and developing critical transportation assets that support industry, and promote new economic development, community investment, and job creation. For more information on Brookhaven, please visit www.BrookhavenPartners.com

Southwest Expects 737 MAX Cancellations Beyond October 1

July 1, 2019 / WIL BALDWIN

CHICAGO, July 1 (Reuters) – Southwest Airlines expects it will have to remove the grounded Boeing Co 737 MAX jets from its flying schedule beyond the current Oct. 1 re-entry date following the discovery of a fresh safety issue, Chief Executive Gary Kelly told employees on Monday.

Last week, Boeing said that it would take until at least September to solve 737 MAX software issues – later than airlines had been expecting – after U.S. aviation regulators uncovered a new problem during simulator sessions.

“I’m sure this will cause us to have to take the MAX out of the schedule beyond Oct. 1,” Kelly said in an internal update, adding that the company would also see “what other modifications we might need to make our plans for this year because it’s obviously extending well beyond what I had hoped.”

Kelly did not elaborate on the possible modifications. So far, the Texas-based airline has tried to substitute its MAX routes with spare aircraft but has still been forced to cancel about 115 daily flights.

American Airlines Group and United Airlines Holdings , the other two U.S. carriers that operate the 737 MAX, have removed the jetliner from their flying schedules until early September.

The three airlines are expected to provide more details on the financial toll of a prolonged MAX grounding during second quarter results later in July.

Boeing’s fast-selling narrowbody was grounded worldwide in March following two deadly crashes within five months.

(Reporting by Tracy Rucinski, Editing by Rosalba O’Brien)

United CEO Promises To Rebook 737 MAX Passengers

May 22, 2019 / WIL BALDWIN

FILE PHOTO: United Airlines Chief Executive Officer Oscar Munoz poses for pictures in his office at the company’s headquarters in Chicago, Illinois, U.S., November 14, 2018.
Picture taken November 14, 2018. REUTERS/Tracy Rucinski

CHICAGO (Reuters) – United Airlines Chief Executive Oscar Munoz promised on Wednesday to accommodate any passengers concerned about flying Boeing Co’s 737 MAX jets once regulators deem the aircraft safe to fly again.

United is the only one of the three U.S. MAX operators to make such an announcement so far. Southwest Airlines Co, the world’s largest MAX operator, said on Wednesday discussions were still ongoing.

American Airlines Group Inc said on Wednesday “customers can be assured that our pilots would never operate an unsafe aircraft,” echoing other carriers’ insistence that safety is paramount to putting the globally grounded jets back in the air.

Still, following two fatal crashes of the MAX model within months, an Ethiopian Airlines jet in March after a Lion Air jet in October, Munoz said he wants customers to feel as comfortable as possible.

“If people need any kind of adjustments we will absolutely rebook them,” Munoz told reporters after the airline’s annual shareholders’ meeting.

Munoz said it was too soon to discuss whether Boeing would pick up the tab. None of the shareholders at the meeting questioned the company’s MAX plans. United is in the midst of a growth plan that has fuelled a 17% share rise over the past year.

Global regulators are meeting with the U.S. Federal Aviation Administration on Thursday to discuss Boeing’s proposed software fix and training updates for the MAX, which has been grounded since mid-March.

The timing of regulatory approval is still unclear, and Munoz said that is only the first step, with independent analysis and public and employee confidence critical in the Chicago-based airline’s strategy for eventually flying the jets again.

A Reuters/Ipsos poll released last week showed U.S. fliers still value ticket prices over aircraft models when choosing flights, suggesting the crashes have had little impact on consumer sentiment.

The No. 3 U.S. airline by passenger traffic, which trades under parent company United Continental Holdings Inc, operates 14 MAX jets and has dozens more on order.

United, American and Southwest together have cancelled thousands of flights during the busy U.S. summer travel season and warned of hits to profits from the grounded MAX, which many airlines had rushed to buy thanks to the narrowbody’s higher fuel-efficiency and longer range.

Still, Munoz said he was not concerned about the timetable for a return to service.

“We have to fly this aircraft for a long period of time, so a week, a month, whatever is not that important,” Munoz said.

(Reporting by Tracy Rucinski in Chicago; Editing by Matthew Lewis and Phil Berlowitz)

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