PARIS (Reuters) – Airbus delivered 49 aircraft in July, up from 36 in June as it continues to recover from a slump in deliveries during this year’s coronavirus lockdowns, the company said on Thursday.
The aircraft were all narrow-body jets, highlighting a dearth of demand for the industry’s biggest models, which last month prompted Airbus to trim A350 production for a second time.
The month’s deliveries included 47 A320neo-family jets.
Airbus also scored its first orders in three months as it sold two A320neos to an undisclosed customer and two A321neos to Lufthansa Technik, the modification and repairs business of German carrier Lufthansa <LHA.DE>.
So far in 2020, Airbus has delivered 245 jets and sold 369, or 302 after cancellations.
Demand for aircraft has been crippled by the coronavirus crisis and its heavy impact on air travel.
Airbus is boosting deliveries on a monthly basis despite the industry’s worst crisis as it negotiates deals with airlines.
But although deliveries are rising compared to the trough seen in April, several bankers and analysts have questioned how many of the aircraft are being placed into service as airlines struggle to save cash. Some are said to go straight to storage.
Airbus has issued default notices and threatened to sue airlines that refuse to collect planes already built while showing flexibility in deferring jets not yet in the factory.
(Reporting by Tim Hepher; Editing by Keith Weir)
An Airbus A320neo aircraft is pictured during a news conference to announce a partnership between Airbus and Bombardier on the C Series aircraft programme, in Colomiers near Toulouse, France
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.
The Alstom-led consortium with Taiwanese engineering and contracting services company CTCI reached contractual close on 23 June 2020 for the Phase Two extension of Taipei Metro Line 7. The contract is valued at close to €424 million, with an Alstom share of approximately €248 million.
Phase One, which was awarded by Systemwide E&M Project Office Department of Rapid Transit Systems of Taipei City Government (SEMPO) in 2018, has been extended to deliver a seamless customer experience on the new metro line, spanning an additional 13.3km with 13 stations as part of Phase Two. When fully completed around late 2028, the 22.8-kilometre medium-capacity metro line, also known as Wanda Zhonghe Shulin Line, will connect Taipei City to New Taipei City more seamlessly. In addition, passengers can look forward to more convenience travelling between the various districts within New Taipei City such as Chong-he, Shu-lin, Tu-chen, Xin-zhuang.
Under the contract, Alstom will be responsible for the design, supply, manufacturing, testing and commissioning of 16 additional fully automated, four-car Metropolis trains, Urbalis 400 Communication Based Train Control (CBTC) signalling system, Supervisory Control and Data Acquisition (SCADA) system, as well as platform screen doors. The trains will be manufactured in Alstom’s Taubaté factory in Brazil, while the signalling system will be delivered by its Saint-Ouen site in France and Bangalore site in India. Alstom and CTCI will also jointly carry out project management and system integration. CTCI will provide the track work, power supply, depot equipment, Telecommunication and Ticketing systems.
“Taipei Metro Line 7, which interchanges with five other lines, will be a game changer for the travelling public of Taipei, and Alstom is delighted to continue to be a part of this iconic project. The success of this project extension with SEMPO positions us as a reliable and trusted partner, established for the long term in Taiwan and well beyond our 40 years of active presence,” said Ling Fang, Senior Vice President of Alstom Asia-Pacific.
Alstom’s metros are world-leading, proven, safe and reliable trains that serve many of the world’s great cities, including Amsterdam, Barcelona, London, Paris and Singapore. Alstom has more than 65 years’ experience in the production of metros, having sold over 17,000 metro cars that operate in 55 cities around the world and carry 30 million passengers every day.
In Taiwan, Alstom provides signalling systems to all but one of Taipei’s metro lines and is currently supplying a driverless signalling system for Taichung Green metro line. In 2017, Alstom won its first tramway project in Taiwan, supplying its latest Citadis tram to Kaohsiung tramway line phase two.
Airbus logo at the entrance of the Airbus facility in Bouguenais
PARIS (Reuters) – Airbus <AIR.PA> deliveries rose 50% in June compared with May and reached their highest level since the coronavirus crisis spread to Europe in March, but the accelerating recovery failed to prevent first-half deliveries from sliding to a 16-year low.
Figures released by the European planemaker late on Wednesday underscored a collapse in aerospace industry fortunes since early this year, hours after Airbus workers facing job cuts staged their first strike in 12 years.
Deliveries rose to 36 aircraft in June from 24 in May and a low of 14 in April. For the first half, deliveries fell by 49% to 196 planes compared with 389 in the same period last year.
Airbus has said it faces an average 40% drop in business over the next two years, forcing it to cut 15,000 jobs, or 11%, of its workforce. Unions oppose compulsory cuts.
Facing a slump in demand, planemakers have been urging airlines to take planes that have already been built in return for agreement to defer others due at later dates.
Some aircraft, however, are going straight into storage because travel demand is recovering slowly, experts say.
June’s figures suggested negotiations were partially paying off as Airbus handed over three wide-body A350-900 aircraft for European airlines despite a glut of large jets.
But deliveries of many other wide-body aircraft at Airbus and U.S. rival Boeing <BA> remain hampered by weak demand for long-haul travel as a result of the crisis.
Sources said last month that Airbus had sent out dozens of default notices to airlines in a bid to keep deliveries moving.
With airlines focusing on survival, Airbus posted no orders for a second month.
Gross orders so far this year remained at 365 jets, but net orders adjusted for cancellations slipped by one unit to 298, after lessor Avolon cancelled one of 10 A330neos it has ordered.
(Reporting by Tim Hepher and Benoit Van Overstraeten; Editing by Chizu Nomiyama and Leslie Adler)
Outbreak of the coronavirus disease (COVID-19) in Renton, Washington
PARIS (Reuters) – Safran <SAF.PA> shares rose on Thursday after Boeing <BA.N> said it would restart production of its 737 MAX jet and announced further cost-cutting measures.
Shares in the French aerospace firm, which co-produces the 737 MAX’s engines with General Electric <GE.N>, were up 2.2%, while Airbus <AIR.PA> shares were 0.7% higher.
Boeing said on Wednesday it was eliminating more than 12,000 U.S. jobs, including 6,770 involuntary layoffs, as the largest American planemaker restructures in the face of the coronavirus pandemic. The move nevertheless lifted Boeing’s shares.
The U.S. rival to Airbus said it had restarted 737 MAX production at a “low rate” at its Renton, Washington factory. Reuters reported in April that regulatory approval for the MAX was not expected until at least August.
(Reporting by Sudip Kar-Gupta; Editing by David Goodman and Alexander Smith)
The Safran company logo is pictured at the company’s logistic area in Colomiers near Toulouse
Delta’s summer schedule continues to be shaped by customer demand, CDC guidelines and government travel regulations. While the June schedule is significantly reduced in comparison to last year, customers will see the return of several major routes, both U.S. domestic and international, which were previously suspended due to the COVID-19 pandemic.
Customers traveling with Delta can feel confident in a safe flying experience. In addition to requiring customers and employees to wear face coverings throughout the travel journey, Delta has implemented policies like capping seating between 50 and 60 percent to ensure customer spacing on all aircraft, elevated its cleaning measures to deliver a new standard of clean, and streamlined its in-flight services to decrease touch points on board. Customers also have added flexibility if they need to change their plans.
Here’s a snapshot of where Delta is planning to fly in June. This schedule, including routes and frequency, remains subject to change due to the evolving nature of COVID-19. This page may be updated.
U.S. DOMESTIC
Ensuring connectivity for customers with critical travel needs, Delta continues to provide flights to all U.S. hubs and top markets, though frequency is significantly reduced. While Delta has temporarily consolidated operations in some markets served by multiple airports, the airline is adding more flights to its June schedule in comparison to May, primarily in Atlanta, New York and between hubs.
CANADA
Detroit to Montreal (daily)
Detroit to Ottawa (daily)
Detroit to Toronto (daily)
Minneapolis to Calgary (daily)
Minneapolis to Edmonton (daily)
Minneapolis to Winnipeg (daily)
New York-JFK to Toronto (daily)
Seattle to Vancouver (daily)
LATIN AMERICA & CARIBBEAN
Caribbean
Atlanta to Aruba (less than daily service restarts in second half of June)
Atlanta to Bermuda (less than daily)
Atlanta to Bonaire (Saturday only service restarts in second half of June)
Atlanta to Kingston, Jamaica (less than daily)
Atlanta to Montego Bay, Jamaica (daily)
Atlanta to Nassau, Bahamas (daily)
Atlanta to Providenciales, Turks and Caicos Islands (less than daily)
Atlanta to Punta Cana, Dominican Republic (less than daily)
Atlanta to San Juan, Puerto Rico (less than daily)
Atlanta to St. Croix (Saturday only)
Atlanta to St. Lucia (less than daily)
Atlanta to St. Maarten (less than daily)
Atlanta to St. Thomas (less than daily)
New York-JFK to Santiago, Dominican Republic (less than daily)
New York-JFK to San Juan, Puerto Rico (less than daily)
New York-JFK to Santo Domingo, Dominican Republic (less than daily)
Central America
Atlanta to Liberia, Costa Rica (less than daily service restarts in second half of June)
Atlanta to Panama City, Panama (less than daily)
Atlanta to San José, Costa Rica (less than daily service restarts in second half of June)
Atlanta to San Pedro Sula, Honduras (less than daily)
Atlanta to San Salvador, El Salvador (less than daily)
Mexico
Atlanta to Cancun (daily)
Atlanta to Mexico City (daily)
Detroit to Mexico City (less than daily)
Los Angeles to Los Cabos (less than daily)
Los Angeles to Puerto Vallarta (less than daily)
Salt Lake City to Mexico City (daily)
South America
Atlanta to Bogotá, Colombia (less than daily)
Atlanta to São Paulo, Brazil (less than daily)
TRANS-ATLANTIC
Atlanta to Amsterdam (daily)
Atlanta to Frankfurt (less than daily)
Atlanta to Lagos (less than daily*)
Atlanta to Paris-Charles De Gaulle (less than daily)
Detroit to Amsterdam (daily)
Detroit to London-Heathrow (less than daily)
New York-JFK to Amsterdam (less than daily)
New York-JFK to Paris-Charles De Gaulle (less than daily)
New York-JFK to Tel Aviv (less than daily)
*Delta’s restart of service to Nigeria is subject to foreign government approval.
Delta’s Frankfurt and London flights also double as scheduled cargo service.
TRANS-PACIFIC
Detroit to Seoul-Incheon (daily)
Detroit to Shanghai (daily*)
Seattle to Seoul-Incheon (less than daily)
Seattle to Shanghai (daily*)
Seattle to Tokyo-Haneda (less than daily)
*Delta’s restart of passenger flights to China is subject to government approval. We will also operate cargo-only scheduled service from Shanghai to Atlanta and Los Angeles. Read more on our cargo flights to Asia.
Delta’s second quarter schedule is 85 percent smaller than last year, with reductions of 80 percent in U.S. domestic capacity and 90 percent internationally.
FILE PHOTO: Airbus CEO Guillaume Faury poses before Airbus’s annual press conference on full-year results
By Tim Hepher
PARIS (Reuters) – European planemaker Airbus issued a bleak assessment of the impact of the coronavirus crisis, telling the company’s 135,000 employees to brace for potentially deeper job cuts and warning its survival is at stake without immediate action.
In a letter to staff, Chief Executive Guillaume Faury said Airbus was “bleeding cash at an unprecedented speed” and that a recent drop of a third or more in production rates did not reflect the worst-case scenario and would be kept under review.
Airbus said it did not comment on internal communications.
The letter was sent to employees late on Friday, days before the company is due to give first-quarter results overshadowed by a pandemic that has left airlines struggling to survive and virtually halted jet deliveries since mid-March.
Airbus has begun implementing government-assisted furlough schemes starting with 3,000 workers in France, “but we may now need to plan for more far-reaching measures,” Faury said.
“The survival of Airbus is in question if we don’t act now,” he added.
Industry sources have said a new restructuring plan similar to its 2007 Power8 which saw 10,000 job cuts could be launched in the summer, but Faury indicated the company was already exploring “all options” while waiting for clarity on demand.
People familiar with the matter say Airbus is also in active discussions with European governments about tapping schemes to assist struggling industries, including state-guaranteed loans.
It has already expanded commercial credit lines with banks, buying what Faury described as “time to adapt and resize”.
PARIS (Reuters) – Airbus <EADSY> said in a stock market filing on Monday that customers could seek to cancel or postpone delivery of airliners and helicopters as the coronavirus crisis continues to escalate.
It issued the warning in an annual reference document ahead of its upcoming Amsterdam shareholder meeting, for which it urged participants to vote by proxy rather than attend in person due to widespread measures to slow the spread of the disease.
Airbus Chief Executive Guillaume Faury said earlier that several airlines had asked to defer deliveries, but that most were continuing to pay their deposits.
“Weaker market and economic conditions in China and their knock-on effects in other markets could result in requests by customers to postpone delivery or cancel existing orders for aircraft (including helicopters),” the filing said, though Faury said earlier there were some signs of recovery in China.
Airbus also detailed steps to improve compliance practices after paying a 3.6-billion-euro fine last month to settle a four-year multinational bribery probe.
But it warned that possible further investigations in other jurisdictions could trigger claims against it by shareholders, impact its ability to raise finance or limit its eligibility for public contracts, as well as harm future commercial sales.
Malaysian authorities last week cleared AirAsia Group <5099.KL> after Britain’s Serious Fraud Office faulted a sponsorship deal between former Airbus parent EADS and a motor racing team owned by the airline’s co-founders.
But the SFO probe, supported by Airbus’s own lawyers, caused a severe rift between AirAsia and its sole supplier, adding to doubts over whether long-haul unit AirAsiaX will take delivery of A330neo jets on order, three people close to the matter said.
AirAsia officials could not be reached for comment. Airbus declined comment.
Loss-making AirAsiaX has said only that it wants to defer delivery of A330neo jets due to the coronavirus crisis.
Deliveries of the wide-body aircraft have also been hit by the impact of U.S. tariffs on Airbus aircraft under a long-running trade dispute, as well as concerns about overcapacity.
Airbus trimmed A330 output in January from about four a month in 2019, Reuters reported earlier this month.
In Monday’s filing, Airbus said it would maintain production of the A330neo at 3.5 aircraft a month.
(Reporting by Tim Hepher; Editing by Mark Potter, William Maclean)
Air Canada said today that it will gradually suspend the majority of its international and U.S. transborder flights by March 31, 2020 in response to decisions by national governments, including Canada and the United States, to close borders and restrict commercial aviation as a result of the COVID-19 crisis. Subject to further government restrictions, the airline intends to continue to serve a small number of international and U.S. trans-border destinations from select Canadian cities after April 1, 2020. The airline also intends to continue serving all provinces and territories of Canada after that date, albeit with a significantly reduced network.
In order to facilitate the continued repatriation of citizens to their home countries, including Canadians back to Canada, and to support the essential movement of needed goods and cargo during the crisis, Air Canada intends to continue to operate a limited number of international “air bridges” between one or more of its Canadian hubs and the cities of London, Paris, Frankfurt, Delhi, Tokyo and Hong Kong from April 1 until at least April 30. This will reduce its international network from 101 airports to six.
As to U.S. transborder services, given the decision by the U.S. and Canadian governments today, from April 1, Air Canada will reduce its transborder network from 53 airports to 13, subject to further reductions based on demand or government edicts. The cities with continued service will be: New York (LGA and EWR), Boston, Washington, D.C. (IAD and DCA), Chicago, Houston, Seattle, San Francisco, Los Angeles, Denver, Orlando and Fort Lauderdale.
Domestic Canada network
Air Canada intends to continue to serve all provinces and territories of Canada, reducing its domestic network from 62 airports to 40 through a reduced network during the period April 1 to 30, subject to further reductions based on demand or government edict.
For information on Air Canada’s schedule beginning April 1, 2020 please see www.aircanada.com.
“The restrictions on travel imposed by governments worldwide, while understandable, are nonetheless having a cataclysmic effect upon the global airline industry. Our immediate focus is on ensuring the safety and well-being of our employees, customers and communities. At the same time, we are exploring with the Government of Canada possibilities to maintain essential operations to enable as many Canadians as possible to return to Canada, and to support other vital transport needs, including the shipment of goods and cargo during the crisis as required in any state of emergency. We are working around the clock to deal with the impact for our customers and our business of the various travel restrictions that are being made by governments at unprecedented speed without advance warning. We will also look at helping Canadians to return home by operating a limited number of charters from international destinations and exploring with the Government of Canada avenues in this regard. We will provide updates as details are finalized,” said Calin Rovinescu, President and Chief Executive of Air Canada.
For Affected Customers
The airline will gradually suspend some of its scheduled flights between now and March 31 as demand for Canadians to return to Canada from a number of destinations reduces. Please check Air Canada’s website for details given the rapidly evolving situation.
Affected customers, including those with Air Canada Vacations packages, whose flights are cancelled will receive a full credit valid for 24 months. There is no requirement to contact Air Canada as customers will be contacted directly.
The airline has also put in place temporary, one-way fares to Canada to enable customers abroad to return home. Customers seeking to contact Air Canada are advised that contact centre wait times are elevated, so the airline has put in place a number of self-service tools to enable customers to manage their travel online. For more information please consult our COVID-19 webpage at www.aircanada.com.
Since the outbreak of the Coronavirus COVID-19, our teams have been doing everything possible to guarantee the safety and health of our passengers and cabin crew.
We regularly consult all relevant international authorities to make sure that we follow – and even surpass – their instructions on health precautions related to the effort to prevent the spread of the Coronavirus.
Aircraft cleaning procedures, which were already of the highest standard given our all-business class offer, have been reinforced to guarantee a safe and relaxing experience for our passengers. Our brand-new A321neo also features a state-of-the-art air circulation system that renews cabin air every 3 minutes.
COMMERCIAL POLICY
In light of President Trump’s recent restrictions on travel between Europe and the U.S., effective March 13th at midnight for a period of 30 days, we have been forced to reassess our flight schedule for the upcoming months.
We must suspend all scheduled flights from March 18th to April 12th, 2020,resuming with one daily flight between Paris and New York from April 13th once the restrictions are lifted.
The launch of the seasonal route from New York to Nice is pushed back to June 1st, 2020.
In the unlikely event that your flight has been cancelled by La Compagnie in light of the Covid-19 situation, you will be notified directly via the contact details provided in your booking and will be offered solutions to modify, postpone or cancel your flights.
Any passengers with a flight scheduled between now and May 31st, 2020 who would like to postpone their departure may do so, regardless of fare conditions and at no charge, or receive a non-refundable but transferrable voucher (valid for 12 months).
