Tag: cost (Page 7 of 16)

Cathay Pacific Posts Record $1.27 Billion First Half Loss

August 12, 2020 / WIL BALDWIN

Cathay Pacific aircraft are seen parked on the tarmac at the airport, following the outbreak of the new coronavirus, in Hong Kong

SYDNEY (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd reported a record HK$9.87 billion ($1.27 billion) first-half loss and said it did not expect a meaningful recovery in passenger demand for some time due to the coronavirus pandemic.

The figure was in line with the HK$9.9 billion forecast it had flagged last month and included HK$2.47 billion of impairment charges.

Revenue plunged 48.3% to HK$27.7 billion in the six months ended June 30 as it slashed passenger flying to a barebones schedule due to lower demand and border restrictions, though it added more cargo-only flights as freight yields rose 44.1%.

The airline, which received a $5 billion rescue package led by the Hong Kong government, has so far refrained from large-scale job cuts but has warned it is reviewing all aspects of its business model with an update expected by the fourth quarter.

“Inevitably this will involve rationalisation of future planned capacity compared to pre-crisis plans, taking into account the market outlook and cost structure at that time,” Chairman Patrick Healy said in a statement on Wednesday.

It has rearranged its aircraft order book with Airbus SE to delay deliveries, is in advanced talks with Boeing Co to do the same and has begun sending one-third of its fleet outside Hong Kong for storage in less humid conditions.

The airline said last month that it had reduced its monthly cash burn to about HK$1.5 billion from between HK$2.5 billion and HK$3 billion while maintaining a minimal flying schedule.

Cathay is expected to report a full-year loss of around HK$13.6 billion, according to the average of 13 analysts polled by Refinitiv before it released its half-year results.

The airline’s shares had surged 9.3% on Wednesday ahead of the earnings announcement, which was made while trading was suspended for the market’s lunch break.

“It is laggard buying on some traditional economy stocks,” Steven Leung, a sales director at UOB Kay Hian, said of the rise.

($1 = 7.7506 Hong Kong dollars)

(Reporting by Jamie Freed; additional reporting by Donny Kwok in Hong Kong; Editing by Himani Sarkar)

Emirates to Resume A380 Service to Toronto, Ontario, Canada

August 10, 2020 / WIL BALDWIN

Emirates has announced it will resume its A380 operations to Toronto starting 16 August, taking its A380 network to six cities.
The airline continues to gradually expand the deployment of its double-decker aircraft in line with market demand and operational approvals.

The iconic Emirates A380 will begin serving travellers on flights to Toronto starting 16 August. The airline has so far resumed A380 operations to Amsterdam, Cairo, Paris, London Heathrow and Guangzhou (8 August) – taking its A380 network to six cities. The Emirates A380 experience remains a favourite amongst travellers for its spacious and comfortable cabins and the airline will continue to gradually expand its deployment in line with market demand and operational approvals.

Customers can fly the Emirates A380 from Dubai to Toronto five times a week. Flights can be booked on emirates.com or via travel agents. Emirates flight EK 241 will depart Dubai at 9:10 and arrive in Toronto at 15:05 local time. The return flight, EK 242 will depart Toronto at 21:45 and arrive in Dubai at 18:30 local time, the following day.

With safety as a priority, Emirates is gradually expanding its passenger services to 70 cities in August, returning to over 50% of its pre-pandemic destination network. Passengers travelling between the Americas, Europe, Africa, Middle East, and Asia Pacific can enjoy safe and convenient connections via Dubai. Customers from Emirates’ network can stop over or travel to Dubai as the city has re-opened for international business and leisure visitors.

COVID-19 PCR tests are mandatory for all inbound and transit passengers arriving to Dubai (and the UAE), including UAE citizens, residents and tourists, irrespective of the country they are coming from.

Free, global cover for COVID-19 related costs: Customers can now travel with confidence, as Emirates has committed to cover COVID-19 related medical expenses, free of cost, should they be diagnosed with COVID-19 during their travel while they are away from home. This cover is immediately effective for customers flying on Emirates until 31 October 2020 (first flight to be completed on or before 31 October 2020), and is valid for 31 days from the moment they fly the first sector of their journey. This means Emirates customers can continue to benefit from the added assurance of this cover, even if they travel onwards to another city after arriving at their Emirates destination. For more details: http://www.emirates.com/COVID19assistance

Tesla Reports Q2 Profit, Announces Texas Gigafactory

July 26, 2020 / WIL BALDWIN

Tesla (TSLA) posted a surprise second-quarter profit last week on cost cutting and strong deliveries, offsetting the effects of its Covid-19 related factory shutdowns. The report may help the electric vehicle manufacturer gain inclusion into the S&P 500 index (^SPX).

Tesla announced earned net income of $104 million for the quarter, or $0.50 per share. This marks the first time the company has posted four straight quarterly profit, a benchmark for the company to be considered for inclusion in the highly coveted S&P 500.

This marks another major win for Chief Executive Elon Musk, whose quest to lead the global auto industry with Tesla, and the aerospace industry with SpaceX, has increasingly been making major leaps forward.

Musk said last Wednesday that the city of Austin, located in Travis County, would be the site of Tesla’s newest factory. The victory for Texas comes at a loss for Oklahoma, which also was seeking to have the factory land in Tulsa. The facility seeks to create as many as 5,000 new jobs. The County offered up to $65 million in tax rebates to entice the company, and plans to begin construction in the third quarter.

The additional plant is slated to produce Model 3 and Model Y vehicles for the Eastern half of the United States, as well as a potential new Tesla Semi truck and its Cybertruck pickup. Elon Musk has stated that his cars are not affordable enough yet for the average consumer, and he hopes to develop a plan to address that issue.

The company also needs to address its growing need for affordable battery cell production, and is looking to expand its partnerships with Panasonic Corp <PCRFY> and Contemporary Amperex Technology of China (CATL) <300750.SZ>.

DHL Express Increases Capacity with Boeing Converted Freighters

July 22, 2020 / WIL BALDWIN

DHL Express and Boeing [NYSE: BA] announced that it will add four 767-300 Boeing Converted Freighters (BCF) as part of the logistics company’s efforts to continue modernizing and growing its fleet with cost-efficient and reliable freighters.

This step is part of DHL’s effort to modernize its long-haul intercontinental fleet in order to fly more eco-friendly and cost-efficiently. The aircraft are converted from passenger to freighter configuration by Boeing to fit the needs of DHL Express and meet the rising global demand for express services.

“We are excited to introduce additional Boeing 767 freighters to the DHL Express air network,” explains Geoff Kehr, senior vice president, Global Air Fleet Management, DHL Express. “We have operated the 767-300F model across our global fleet for many years and look forward to continue investing in the platform by adding more 767-300BCFs. The freighter type offers a proven versatility and we appreciate the opportunity to further enhance efficiency while simultaneously improving our environmental footprint. This brings us closer to our Strategy 2025 goals and ensures we deliver the best quality service possible to our customers.”

The world’s most efficient medium wide-body twin-engine freighter, the Boeing 767 freighter family boasts the lowest direct operating costs, best payload-to-weight ratio and allows airlines to develop new opportunities in the long-haul, regional and feeder markets. The 767-300BCF has virtually the same cargo capability as the 767-300F production freighter with approximately 50 tonnes structural payload at a range of approximately 3,000 nautical miles (5,556 kilometers) and 412,000 pounds (186,880 kilograms) maximum takeoff weight.

“Boeing’s 767 freighter, whether it is a production or converted option, offers an unmatched combination of capacity and capability as well as superior economics. We are delighted DHL has selected Boeing platforms to optimize their operations,” said Ihssane Mounir, Boeing’s senior vice president of Commercial Sales and Marketing. “We are committed to delivering the freighter capacity that DHL needs to succeed as one of the most trusted logistics and express cargo leaders in the world.”

DHL Express will add four 767-300 Boeing Converted Freighters (BCF) as part of the logistics company’s effort to modernize its long-haul intercontinental fleet, allowing for more eco-friendly and cost-efficient routes. (Photo credit: DHL)

Rolls-Royce Strengthens Opportunities with Kinolt Acquisition

July 18, 2020 / WIL BALDWIN

Strenghtens Rolls-Royce’s market position in safety-critical applications with a leader in dynamic uninterruptible power supply
Completes Rolls-Royce’s product offering and accelerates the strategy of offering integrated solutions
Acquisition expected to deliver cost and revenue synergies, and help support medium-term profitability and create long-term shareholder value

Rolls-Royce is strengthening its business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply. Rolls-Royce is already a leading provider of back-up power generation through its Power Systems business with its product and solutions brand MTU. This market has remained a growth area during the Covid-19 pandemic and is expected to grow in the coming years as customers look to further minimize their risk of disruption.

Uninterruptible power supply systems are used wherever stable electricity is required or a power failure would be extremely harmful, for example within data centres, hospitals or manufacturing facilities which operate sensitive processes. This acquisition is another important step on the strategic journey of Power Systems towards becoming a full-service provider of integrated solutions. Kinolt’s uninterruptible emergency power supply technology is particularly well suited to applications where space is at a premium, such as urban areas or installations in existing buildings and complements Rolls-Royce’s own MTU branded solutions for large scale and greenfield sites. As a result, the deal is expected to result in cost and revenue synergies, medium-term long-term shareholder value in the back-up power generation business.

Andreas Schell, CEO of Rolls-Royce Power Systems, said: “The extraordinary times created by the Covid-19 pandemic have shown just how important it is to secure electricity supply to sensitive and critical infrastructure. The provision of uninterruptible power is vital in any situation and even more so today, as it ensures the provision of vital services such as medical care or the world’s continued flow of internet traffic. Without it, no public authority or company would be able to act in any crisis.”

The demand for uninterruptible power solutions is expected to remain strong in the aftermath of the Covid-19 pandemic. The acquisition of Kinolt will give Rolls-Royce a market-leading solution for businesses and local authorities who experienced issues with supply, or do not wish to run the risk again.

“We originally signed the deal to acquire Kinolt before the full global impact of Covid-19 was apparent,” added Schell. “Since then we have rigorously examined the rationale for the transaction and the opportunities it presents to our business and concluded that the arguments in favour of the acquisition are even stronger than before.”

Power Generation is already the top-selling segment within the Power Systems business. In the future it is expected to be the only manufacturer in the world able to supply customers with all components and consequently a complete uninterrupted power generation system in the power range from 200 to 3,200 kVA. Kinolt’s technology consists of a combination of rotating, kinetic mass storage devices, a diesel engine and a generator that can also be used as an electric motor. MTU engines from Rolls-Royce are often already used within Kinolt’s solutions. The Kinolt system is connected between the external power supply system and safety-critical equipment and supplies the latter with the required electrical power during normal operation. The grid frequency and voltage are generally more stable than the grid of public power suppliers. This is necessary because data servers, computer-controlled systems or sensitive devices such as those in hospitals can fail in the event of voltage and frequency fluctuations. In the case of a power failure, the flywheel mass accumulator ‘bridges’ the first few seconds before the diesel engine takes up the load.

“We will integrate the products and systems of our new subsidiary into our MTU product portfolio,” said Andreas Görtz, Vice President of Power Generation at Rolls-Royce. “Our worldwide sales and service network will open up new market opportunities by offering innovative uninterruptible power solutions. This will significantly strengthen our market position in safety-critical applications.”

Kinolt is based in the town of Grâce-Hollogne in the Belgian province of Liège and was known as Euro-Diesel until mid-2019. The transaction was completed on 1 July 2020 following the approval of antitrust authorities.

Rolls-Royce stärkt sein Angebot an Stromversorgungssystemen für sicherheitskritische Anwendungen mit dem Abschluss der Übernahme von Kinolt S.A., einem in Belgien ansässigen Spezialisten für dynamische unterbrechungsfreie Stromversorgung. Rolls-Royce is strengthening its business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply. Avec l’aboutissement de l’acquisition de Kinolt S.A., un spécialiste de l’alimentation dynamique sans interruption (ASI) établi en Belgique, Rolls-Royce élargit son offre de systèmes d’alimentation électrique dédiés aux applications cruciales en matière de sécurité. Rolls-Royce heeft de overname afgerond van Kinolt S.A., een in België gevestigde specialist voor dynamische onderbrekingsvrije stroomvoorziening. Met deze overname vergroot het zijn aanbod van stroomvoorzieningssystemen voor veiligheidskritische toepassingen.

Safran Shares Lifted by Boeing 737 MAX Restart Plan

May 28, 2020 / WIL BALDWIN

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

Aer Lingus to Review Social Distancing Following Packed Flight

May 5, 2020 / WIL BALDWIN

LONDON (Reuters) – Irish airline Aer Lingus said it was reviewing its social distancing procedures after a flight on Monday was packed with passengers.

European flights have all but come to a standstill during the coronavirus pandemic with only a few services operating for essential travel such as people going to work or being repatriated, or for cargo.

While there is no visibility on when travel restrictions will ease, airlines are considering how to safely restart services and give passengers confidence to fly.

Aer Lingus, owned by IAG <IAG.L>, said it would consider how it operates after its Belfast to London Heathrow flight on Monday had “unexpectedly high loads” and that due to the level of the demand for the route, it could need to make changes.

“Aer Lingus is reviewing its processes and procedures applicable to the operation of this service,” an Aer Lingus spokeswoman said, adding that safety was its top priority.

Some airlines have discussed leaving middle seats empty on flights to enable social distancing, while other airlines such as Germany’s Lufthansa <LHA.DE> and Hungary’s low cost airline Wizz Air <WIZZ.L> have made it compulsory for passengers to wear face masks on flights.

(Reporting by Sarah Young and Ian Graham; Editing by Kirsten Donovan)

FILE PHOTO: The Aer Lingus EI-DER Airbus A320 makes its final approach for landing at Toulouse-Blagnac airport

EasyJet Says Can Ride Out 9 Month Shutdown and Slow Recovery

April 18, 2020 / WIL BALDWIN

FILE PHOTO: EasyJet planes parked at Luton airport after the airline grounded its entire fleet

LONDON (Reuters) – EasyJet can survive a nine-month shutdown thanks to its measures to contend with the coronavirus crisis and is planning for a slow recovery, the British airline said on Thursday.

As airlines worldwide battle for survival after lockdowns and travel bans brought the sector to a virtual standstill, EasyJet announced a new fleet plan to manage its emergence from the enforced hibernation.

The UK-based company said it will start to shrink its fleet and the number of planes it operates will not reach pre-crisis levels until 2022, signalling that it does not expect a quick recovery for the industry.

“We’ve been able to adapt ourselves to reduced demand for the next couple of years, then have the flexibility to increase as demand picks up again,” Chief Executive Johan Lundgren told reporters.

The industry is split on how quickly the sector can recover. Lufthansa, plane manufacturers and airline body IATA have warned that it will be a slow process. EasyJet’s bigger low-cost rival Ryanair, meanwhile, has predicted a swift rebound in traffic.

Lundgren said that, while he does not expect the grounding of easyJet’s fleet to last nine months, the company would remain cash-positive even if that were the case and could survive for longer than that by seeking additional funding.

Among the steps it is taking, easyJet is in talks over the sale and leaseback of some planes to leasing companies, with expected proceeds of up to 550 million pounds ($687 million).

“Overall, the company has presented a very credible response to the crisis,” said Goodbody analyst Mark Simpson.

In addition to the deferral of new orders and non-renewal of leases, easyJet said it now plans to sell six aircraft.

The airline, however, has faced calls from its founder and biggest shareholder, Stelios Haji-Ioannou, to terminate its 4.5 billion pound order with Airbus for 107 new jets.

He escalated his row with management on Thursday, issuing a statement saying he planned to call for the removal of Lundgren as well as chairman John Barton at forthcoming meetings. He said Lundgren should not send money to Airbus for planes while running an “aircraft parking lot”.

CASH PILE

Through various funding initiatives, easyJet expects to generate total additional liquidity of about 1.85 billion to 1.95 billion pounds, leading to a notional cash balance of about 3.3 billion pounds.

Given the level of continued market uncertainty, the company said it is not possible to provide guidance for the remainder of the 2020 financial year.

However, it said winter bookings are well ahead of those at the same stage last year, with Lundgren adding that he expects there to be pent-up demand for holidays as people emerge from lockdown.

But travel restrictions are likely to ease slowly and easyJet will have to be flexible, the CEO said. “I don’t think this is going to be a case of let’s just open everything up,” he added.

Measures under consideration include disinfecting aircraft and steps to ensure social distancing on planes.

“We will clearly look to have the middle seat empty as we start,” Lundgren said. “I think that is actually what the customers would like to see.”

EasyJet shares were up 2.2% at 616 pence at 1207 GMT, having lost more than 50% year to date.

($1 = 0.8007 pounds)

(Reporting by Sarah Young; Editing by Kate Holton and David Goodman)

First Nigerian A-29 Super Tucano Completes Inaugural Flight

April 18, 2020 / WIL BALDWIN

Jacksonville, EUA, April 17, 2020 – Embraer Defense & Security and Sierra Nevada Corporation (SNC) announced the first of 12 A-29 Super Tucano light attack, combat and reconnaissance aircraft for the Nigerian Air Force (NAF) successfully completed its inaugural flight at the production facility in Jacksonville, Florida.

The full fleet of A-29 Super Tucano aircraft for the NAF are currently in production by SNC and Embraer at the Jacksonville facility with delivery to the NAF expected on schedule in 2021.

The NAF A-29 aircraft will now begin mission modification and final testing in Centennial, Colorado. Following final testing, before delivery, NAF pilots will train in the aircraft.

“This is an exciting milestone in the production of these A-29s for the Nigerian Air Force. The Jacksonville production line is active, and Embraer and SNC look forward to seeing these aircraft continue to roll off the line in the coming months,” says Jackson Schneider, president & CEO, Embraer Defense & Security.

“The aircraft met or exceeded all the requirements and we are very pleased with the successful flight,” stated Ed Topps, vice president of Tactical Aircraft Systems and programs for SNC’s IAS business area. “SNC and our partner, Embraer, are certain the Nigerian Air Force will be pleased with these aircraft.”

The combat-proven A-29 Super Tucano is the gold standard of light attack combat and reconnaissance aircraft around the world and is designed and built for the mission in Nigeria.

The A-29 Super Tucano is the most reliable and cost-effective solution for basic and advanced flight and combat training, close air support operations, Intelligence, Surveillance, and Reconnaissance (ISR), armed over-watch, counterinsurgency and irregular warfare scenarios.

The aircraft has already been selected by 15 air forces around the world to deliver cost-effective close air support and reconnaissance capabilities.

In December 2018, SNC and Embraer Defense & Security were awarded the contract to deliver 12 A-29 Super Tucano light attack aircraft to the Nigerian Air Force. The contract for the NAF includes ground training devices, mission planning systems, mission debrief systems, spares, ground support equipment, alternate mission equipment, contiguous U.S. interim contractor support, outside of continental U.S. (OCONUS) contractor logistic support and field service representatives for OCONUS support.

Volaris Announces Temporary Capacity Reduction

April 2, 2020 / WIL BALDWIN

PRNewswire/ — Volaris (NYSE: VLRS), the ultra-low-cost airline serving Mexico, the United States and Central America, announces that pursuant to a decree published in the Official Gazette of the Federation, the Government of the United Mexican States, acting through the General Health Council (Consejo de Salubridad General (“GHC”)) declared a health emergency due to force majeure, as a result of the disease epidemic caused by the virus SARS-CoV-2 (COVID-19), known as Coronavirus, which will be in effect until April 30, 2002 (the “Declaration of Emergency”)

The Declaration of Emergency and the health security measures announced by the GHC, such as the suspension of non-essential activities in the public, private and social sector, as well as the call to the population to comply with stay at home, will impact the demand for passenger air transportation whilst the Declaration of Emergency is in effect.

As a result, from the date hereof, Volaris will make an additional capacity reduction to that which was advised on March 24, 2020. Capacity measured by available seat miles (ASMs) for the month of April, 2020 will reduce to approximately 80% of total operation versus the schedule originally published.

Volaris will continue to provide relevant market updates should further capacity, governmental travel restrictions or other liquidity preserving measures need to be implemented.

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