Ryanair today (Tues 10 Mar) announced the suspension of its full flight schedule to/from and within Italy, following the decision of the Italian Government to “lock down” the entire country to contain the spread of the Covid-19 virus.
These additional cuts will be implemented as follows:
From 24:00hrs Weds 11 Mar until 24:00hrs Wed 8 Apr, Ryanair will suspend all Italian domestic flights.
From 24:00hrs Fri 13 Mar until 24:00hrs Wed 8 Apr, Ryanair will suspend all Italian international flights.
All affected passengers have received email notices today informing them of these flight cancellations. Passengers looking for repatriation can obtain a free move to an earlier Ryanair flight operating up until midnight Fri 13 Mar. Affected passengers will be able to choose between a full refund or a travel credit that can be redeemed on Ryanair flights in the next 12 months.
Ryanair continues to comply fully with WHO and national Government guidance and travel bans. The situation is changing on a daily basis, and all passengers on flights affected by travel bans or cancellations, are receiving emails and are being offered flight transfers, full refunds or travel credits.
Ryanair apologises sincerely to all customers for these schedule disruptions, which are caused by national Government restrictions and the latest decision of the Italian Government to lock down the entire country to combat the Covid-19 virus.
Due to the COVID-19 situation, Norwegian is preparing to cancel approximately 3000 flights between mid-March and mid-June. This represents approximately 15 percent of the total capacity for this period. The company has also put several other measures in place, including temporary layoffs of a significant share of its workforce.
The past week, Norwegian has experienced reduced demand on future bookings. The company will cancel about 3000 flights to meet the change in demand. The cancellations represent approximately 15 percent of the total capacity for the period mid-March to mid-June. It will affect the entire network and more details will be shared as soon as they are ready to be implemented. Affected customers will receive information about these changes as soon as they take place.
“This is a critical time for the aviation industry, including us at Norwegian. We encourage the authorities to immediately implement measures to imminently reduce the financial burden on the airlines in order to protect crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.
“Unfortunately, cancellations will affect a significant share of our colleagues at Norwegian. We have initiated formal consultations with our unions regarding temporary layoffs for flying crew members as well as employees on the ground and in the offices. We will continue to engage in constructive dialogue with unions and employees to work through this difficult situation together,” said Schram.
Norwegian will continue to share updates with its customers, the financial market and the media once new measures are implemented.
Due to increased uncertainty surrounding the duration and scale of the Covid-19 outbreak, Air New Zealand has today announced that it will be withdrawing the full year 2020 earnings guidance it issued to the market on 24 February 2020 and reconfirmed at its interim results announcement on 27 February 2020.
Air New Zealand has taken numerous steps to mitigate the impact of reduced demand resulting from Covid-19, including reducing capacity on its Asia, Tasman and Domestic networks, redeploying its fuel efficient 787 Dreamliner fleet to drive operational efficiencies and using tactical pricing to stimulate demand on the impacted sectors. However, the airline now believes that the financial impact is likely to be more significant than previously estimated and with the situation evolving at such a rapid pace, the airline is not in a position to provide an earnings outlook to the market at this time. An update on earnings expectations will be provided when appropriate.
Over the course of the past week the airline has seen additional softness in demand with a decline in bookings across its network. The further spread of Covid-19 to countries outside of China, including New Zealand, has driven a downward shift in demand.
Chief Executive Officer Greg Foran says that it is increasingly clear that Covid-19 has created an unprecedented situation and it is difficult to predict future demand patterns.
“We have been continuously monitoring bookings and in recent days have seen a further decline which coincides with media coverage of the spread of Covid-19 to most countries on our network as well as here in New Zealand,” says Mr Foran.
In response the airline has implemented further capacity reductions to its network, which include extending the suspension of its Shanghai service through to the end of April, and additional consolidation of services across the Tasman, Pacific Islands and Domestic network in March and April.
As a result of these actions, Air New Zealand has reduced total capacity into Asia by 26 percent, and total overall network capacity by approximately 10 percent since the outbreak of Covid-19 started.
Like the vast majority of its industry peers, the airline is also pursuing a range of mitigations in response to the swift decline of demand. These include the deferral of non-urgent capital spend and non-critical business activity across operational and corporate functions.
Chief Executive Officer Greg Foran has voluntarily offered to reduce his base pay of $1.65 million by approximately 15% ($250,000) with the support of the Board, and Air New Zealand’s Executive team will extend their salary freeze that has been in place since May 2019. On top of this, the airline has implemented a hiring freeze for all roles that are non-critical and will offer operational staff the option to take unpaid leave in addition to managing annual leave balances.
“Air New Zealand is a strong and resilient business operated by a world-class team with deep experience having navigated prior shocks to our business and industry. While we have already made swift adjustments to our operations, we are prepared to take further actions to address the ongoing demand impact of Covid-19,” says Mr Foran.
Summary of Air New Zealand’s response since the Covid-19 outbreak
Overall capacity reductions of approximately 10% across the network, including: – Asia capacity reduction of 26% through June, including extension of Shanghai route suspension through April – Tasman capacity reductions of 7% through June – Pacific Islands capacity reductions of 6% through June – Reductions across the Domestic network of approximately 4%, with a 10% to 15% reduction in March and April
Various labour initiatives including a voluntary reduction in CEO pay, a hiring freeze for all non-critical roles and voluntary unpaid leave for operational staff
Deferral of non-urgent capital spend and any non-critical business activity
Seasonal service between Detroit and Rome is postponed until May 1.
Due to the continued spread of COVID-19, Delta is temporarily suspending service between Atlanta Hartsfield-Jackson International Airport (ATL) and Rome Leonardo da Vinci-Fiumicino Airport (FCO) starting Wednesday, March 11 through April 30.
Additionally, seasonal Detroit to Rome service will be delayed to May 1. It was originally scheduled to begin April 1.
Delta is also extending its suspension of service from New York – John F. Kennedy International Airport (JFK) to Milan Malpensa Airport (MXP) to May 20. Service from New York-JFK to Venice Marco Polo Airport (VCE) is postponed to May 21.
Customers traveling between Rome and the United States will continue to have access through New York-JFK from March 11 through April 30. New York-JFK to Rome will be Delta’s only flight to Italy during this period.
The airline’s flight schedule between the U.S. and Rome will be as follows:
Flight
March
April
JFK-Rome (no changes)
5x Weekly
5x Weekly
Making changes to your flight
Customers with affected travel plans can go to the My Trips section of delta.com to help them understand their options. These may include rebooking on alternate Delta flights, rebooking on flights after April 30, rebooking on alternate or partner airlines, refunds or contacting us to discuss additional options. Delta continues to offer a change fee waiver for customers who wish to adjust their travel plans.
DEARBORN, Mich. (Reuters) – Investors sent Ford Motor Co shares skidding on Tuesday after the company delivered a weaker-than-expected 2020 forecast, warning of higher warranty costs, lower profits at its credit arm and continued investments in future technology such as self-driving cars.
Shares in the No. 2 U.S. automaker plunged 9.4% in after-hours trading, shaving more than $3 billion off the company’s value. In comparison, electric carmaker Tesla closed up nearly 14%, pushing its market cap to $160 billion, more than four times the size of Ford’s $36.4 billion.
“The results were not OK in 2019,” Ford Chief Financial Officer Tim Stone told reporters at the company’s headquarters outside Detroit.
“As I look to 2020 and beyond, I’m very optimistic,” he said, while cautioning that Ford’s lower guidance does not yet account for the potential impact of the coronavirus outbreak in China.
In an after-hours call with financial analysts, Chief Executive Jim Hackett was more blunt about the challenge of balancing Ford’s protracted turnaround efforts with its continuing work on future technology, including electric and self-driving cars.
“I don’t think this company can keep straddling the old and new worlds forever … This company has to change,” Hackett said.
Ford said it expects 2020 operating earnings to be in the range of 94 cents to $1.20 a share. Analysts were expecting $1.26 a share.
Stone said Ford expects to continue its quarterly dividend of 15 cents, which could cost the company $2.4 billion in 2020. Asked about continuing the dividend after lowering its 2020 guidance, Hackett said, “We like to return value to shareholders.”
The disappointing 2020 forecast, coming after Ford previously trimmed its 2019 outlook, is a blow for Hackett, who took the helm in May 2017.
He has been asking investors to be patient with a restructuring that has seen the formation of a wide-ranging alliance on commercial, electric and autonomous vehicles with Volkswagen AG <VOWG_p.DE> and the sale of its money-losing operations in India to a venture controlled by India’s Mahindra & Mahindra.
But by Ford’s own accounting, the restructuring is far from complete. It has booked $3.7 billion of the projected $11 billion in charges it previously said it would take, and expects to book another $900 million to $1.4 billion this year.
For the fourth quarter of 2019, Ford reported a net loss of $1.7 billion, or 42 cents a share, compared with a loss of $100 million, or 3 cents a share, a year earlier.
The quarter included a loss of $2.2 billion due to higher contributions to its employee pension plans, something it disclosed last month.
Revenue in the quarter fell 5% to $39.7 billion, above the $36.5 billion Wall Street had expected.
Ford’s adjusted free cash flow fell 67% in the fourth quarter to $500 million, including the $600 million cost of bonuses related to a new labor deal with the United Auto Workers union. The UAW deal also played a role in driving North American automotive profit margins down to 2.8% in the fourth quarter.
Ford said its operating losses in China last year totaled $771 million, including a loss of $207 million in the fourth quarter. It lost $1.5 billion in 2018. Ford’s market share in China in the fourth quarter fell to 2% from 2.3% last year.
In December, Ford said it would halve its operating loss in 2019 and nearly halve it again in 2020, followed by further improvement in 2021.
However, that forecast was before the appearance of the fast-spreading coronavirus and its crippling effects on China’s economy.
Ford’s China sales fell about 15% in the fourth quarter and 26% for the year as it continued to lose ground in its second-biggest market. Ford has been struggling to revive sales in China since its business began slumping in late 2017.
Detroit rivals General Motors Co and Fiat Chrysler Automobiles are scheduled to report their results on Wednesday and Thursday, respectively.
(Reporting by Ben Klayman and Paul Lienert; Editing by Tom Brown)
MGM Resorts International (NYSE: MGM) said Tuesday that it plans to sell the MGM Grand and Mandalay Bay properties to a joint venture of MGM Growth Properties LLC (NYSE: MGP) and Blackstone Real Estate Income Trust, Inc. for $4.6 billion.
The Blackstone Real Estate Income Trust will purchase $150 million in MGM Growth Properties Class A shares. MGP will own 50.1% of the joint venture, and BREIT will own 49.9%.
MGM Resorts will enter into a long-term triple net master lease for the MGM Grand and Mandalay Bay and will continue to manage and be responsible for the properties on a day-to-day basis, with the joint venture owning the properties and receiving rent payments.
The transaction is expected to close in the first quarter of 2020.
“We are pleased to announce this partnership with BREIT, which illustrates the numerous opportunities available to grow our business and emphasizes the strong institutional demand for gaming real estate assets,” MGP CEO James Stewart said in a statement.
“Along with the contemplated cash redemption of $1.4 billion of MGM’s operating partnership units as announced by MGM, we expect this transaction to be accretive to AFFO while allowing us to maintain pro rata net leverage of 5.6x.”
MGM shares were down 0.45% at $33.22 at the time of publication Tuesday. The stock has a 52-week high of $33.87 and a 52-week low of $23.68.
EmbraerX, Embraer’s disruptive business subsidiary, announces its expansion into the commercial air cargo market, via a collaboration agreement with Elroy Air, at CES 2020. This collaboration will allow the companies to accelerate the unmanned air cargo market worldwide, leveraging Embraer’s 50 years of industry experience with Elroy Air’s bold new developments in autonomous aircraft systems.
“In order to stay the course of creating solutions that benefit humanity at large, we believe the cargo market is prime for an autonomous aircraft,” said Antonio Campello, President & CEO, EmbraerX. “Booming eCommerce is forcing the cargo market to grow and seek new solutions, creating a distinct need for more flexibility. Our holistic approach to accelerating this market will include working with Elroy Air and its Chaparral system, capable of delivering cargo (250-500 lbs) over distances up to 300 miles, as well as our work in associated services and air traffic management solutions.”
“Elroy Air aims to open a new chapter for the logistics market with point-to-point autonomous aerial cargo systems” said Dave Merrill, CEO of Elroy Air. “Elroy Air’s Vertical Takeoff and Landing (VTOL) cargo delivery aircraft, the Chaparral, will operate without airports or charging stations, and is optimized for freight with automated cargo loading and unloading. Our collaboration with EmbraerX will accelerate our path to deployment in commercial freight markets.”
This collaboration is part of EmbraerX’s multi-project approach to further develop the air mobility ecosystem and create the conditions for people and goods to move from A to B in a seamless and affordable way. Beyond cargo, EmbraerX is engaged in several projects, including the development of an Urban Air Mobility focused eVTOL, a tailored Urban Air Traffic Management (UATM) system and a fleet-agnostic business platform, designated Beacon, to streamline services.
(Reuters) – JetBlue Airways Corp on Monday said it plans to become carbon neutral on all domestic flights by July 2020 and would use an alternative fuel source for flights leaving from San Francisco amid rising pressure to cut greenhouse emissions.
The aviation industry has been trying to combat climate change by trying to cut its greenhouse gas emissions in half by 2050 compared with 2005 levels and sees the emergence of lower-carbon biofuels as a vital step towards meeting this goal.
The industry’s plan rests on a mix of alternative fuel, improved operations such as direct flight paths, new planes and other technologies.
JetBlue in its attempt to reduce greenhouse gas emissions will favor renewable sources and will start using sustainable aviation fuel in mid-2020 on flights from San Francisco International Airport.
“By offsetting all of our domestic flying, we’re preparing our business for the lower-carbon economy that aviation – and all sectors – must plan for,” Chief Executive Officer Robin Hayes said in a statement.
JetBlue declined to give details about the cost of the exercise. It did not disclose if any other airports will be a part of the plan to reduce greenhouse gas emissions.
Sustainable-fuel, derived from sustainable oil crops or from wood and waste biomass, would have the single largest impact in reducing emissions from each flight by around 80%, but is in short supply, according to the International Air Transport Association (IATA).
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel and Aditya Soni)
A JetBlue aircraft comes in to land at Long Beach Airport in Long Beach
FILE PHOTO: A 2018 Tesla Model 3 electric vehicle is shown in Cardiff, California
OSLO (Reuters) – The sale of new electric cars in Norway rose by 30.9% last year amid soaring demand for Tesla Inc’s <TSLA> vehicles, but the pioneering U.S. firm faces rising competition from rival auto makers in 2020.
Fully electric cars made up 42.4% of sales in the Nordic nation last year, a global record, rising from a 31.2% market share in 2018 and just 5.5% in 2013, the Norwegian Road Federation said on Friday.
Seeking to become the first country to end the sale of fossil-fueled cars by 2025, Norway exempts battery-powered vehicles from the taxes imposed on petrol and diesel engines.
This year, as many as six in 10 of all new cars sold in the country could be fully electric, said Volkswagen <VWAPY> distributor Harald A. Moeller AS, which is preparing to launch several models in 2020.
“The electrification of the car market is accelerating … we forecast electric vehicles to hold a 100% market share in 2025,” the importer said of the outlook for Norway.
The country’s best-selling car in 2019 was Tesla’s mid-sized Model 3 sedan, which retails from 384,900 Norwegian crowns ($43,721.74), racking up an 11% market share in the California-based firm’s first attempt at addressing the mass market.
(Reporting by Victoria Klesty and Lefteris Karagiannopoulos, writing by Terje Solsvik, editing by Gwladys Fouche)
SWISS will be adding six attractive new summer destinations to its Geneva-based route network from 22 June. The new services will operate to and from Ponta Delgada (on the Azores), Antalya (Turkey), Menorca (Spain), Djerba (Tunisia), Dubrovnik (Croatia) and Rhodes (Greece).
Swiss International Air Lines (SWISS) will add six new routes to its Geneva-based network next summer, serving destinations in Portugal, Turkey, Spain, Tunisia, Croatia and Greece. The additions will bring to 53 the number of points receiving non-stop SWISS service from and to Geneva.
Ponta DelgadaPonta Delgada on the Azores will be served every Monday from 22 June to 31 August. The new route will make SWISS the only airline offering non-stop flights between Geneva and the Portuguese mid-Atlantic archipelago, which is famed for its unspoilt nature and its spectacular landscapes.
Antalya SWISS will be offering a weekly Friday service between Geneva and Antalya from 26 June to 23 October. A seaside resort on Turkey’s southwest coast, the city is considered one of the country’s finest.
Menorca Menorca will enjoy SWISS services from and to Geneva every Saturday between 4 July and 29 August. A quieter alternative to neighbouring Mallorca and Ibiza, the island in the Spanish Balearics is renowned for its unspoilt natural landscapes and its fine-sand beaches fringed by turquoise waters.
Rhodes In adding the picturesque islands of Rhodes to its network, SWISS will serve no fewer than eight Greek destinations from Geneva in its 2020 summer schedules. Rhodes will receive a weekly Sunday service between 5 July and 30 August.
DjerbaSWISS will be providing a weekly Saturday service between Geneva and Djerbafrom 4 July to 29 August. A highly popular holiday destination, the island off the Tunisian coast is reputed for its beaches and its white desert towns.
DubrovnikDubrovnik will enjoy weekly Saturday SWISS services from and to Geneva between 4 July and 29 August. The Southern Croatian city, which has been designated as a UNESCO World Heritage Site, is one of the most charming in Europe with its stunning architecture and its rich cultural history.
