Qantas Group shares came perilously close to dropping below $2 on the day the airline announced it was suspending two-thirds of its staff.
Shares plummeted from $2.53 on Wednesday to a low of $2.03 before making a partial recovery to close out the day on $2.14. In December, stocks in Qantas were selling for $7.46.
Virgin Australia had a difficult day itself, with shares closing down 12 per cent to just $0.059.
Earlier in the day, Qantas Group dramatically said it was cancelling all international flights from late March and “standing down” 20,000 employees.
Consortium of bidders led by Advent, Cinven and RAG foundation
Sales proceeds pave the way for further transformation of thyssenkrupp
Cash inflow remains within the company
Buyers give far-reaching site and employment guarantees for tk Elevator
Closing and purchase price payment expected by the end of the current fiscal year
Martina Merz: “With the sale of Elevator, thyssenkrupp can pick up speed again. We will reduce the company’s debt as far as is necessary and at the same time invest as much as is reasonable in its further development.”
thyssenkrupp sells its Elevator Technology business entirely to a consortium led by Advent, Cinven and RAG foundation. The respective Executive Board decision was approved on Thursday evening by the Supervisory Board of thyssenkrupp AG. The purchase agreement has been signed. Closing of the transaction is expected by the end of the current fiscal year. The purchase price is €17.2 billion. thyssenkrupp will reinvest part of the purchase price[1] (€1.25 billion) in a stake in the elevator business. The transaction is subject to merger control approvals, although thyssenkrupp does not expect the competent authorities to have any reservations. The proceeds from the transaction will remain within the company and are to be used to the extent necessary to strengthen the balance sheet. Alongside this, the proceeds shall be used to advance the development of the remaining businesses and the portfolio. As announced at the Annual General Meeting at the end of January, thyssenkrupp is proceeding the analysis phase so that a decision on the concrete use of funds can be taken in May.
Martina Merz, CEO of thyssenkrupp AG: “With the sale, we are paving the way for thyssenkrupp to become successful. Not only have we obtained a very good selling price, we will also be able to complete the transaction quickly. It is now crucial for us to find the best possible balance for the use of the funds. We will reduce thyssenkrupp’s debt as far as is necessary and at the same time invest as much as is reasonable in developing the company. With this, thyssenkrupp can pick up speed again.”
The sale of Elevator is a favorable solution not only for the company, its shareholders, customers and employees, but also for the elevator business itself. In the consortium, thyssenkrupp has found new owners for the elevator business who have extensive industrial expertise and offer the workforce a high degree of security. The buyers have a strong track record in profitably growing and nurturing companies to become global champions.
In negotiations with employee representatives and the IG Metall trade union, the buyers have committed to far-reaching site and employment guarantees. In addition, it was agreed that the buyers will continue to manage thyssenkrupp Elevator as a global group. The company will also remain based in Germany and employee co-determination will continue. That means the solution is in line with thyssenkrupp’s understanding of corporate and social responsibility.
“We are not pleased to part with our employees and the elevator business. Nevertheless, today is a good day for everyone involved. With this step, we are opening up real prospects for the future: for the elevator business as an independent company and, with the financial solidity we have gained, also for all other areas of thyssenkrupp,” Martina Merz added.
New Technology Creates Hyper Elevators That Can Go Sideways
Gogo AVANCE L5 provides the fastest and most reliable 4G air-to-ground high-speed internet coverage over North America for business aircraft today
Retrofit available for Learjet 40, Learjet 45, Learjet 70 and Learjet 75 aircraft throughout Bombardier’s growing service network, which has unparalleled OEM expertise to enhance the ownership experience for customers
This high-speed connectivity is already available on new Learjet aircraft, and will be an option on the new Learjet 75 Liberty business jet
Bombardier Aviation is bringing faster connectivity to its in-service Learjet fleet as part of a continuing commitment to this legendary platform. Gogo Business Aviation’s next-generation, 4G air-to-ground (ATG) internet system, Gogo AVANCE L5, has been an available option on new Learjet aircraft since last year.
Bombardier is now offering customers the high-performance 4G in-cabin Wi-Fi system as a retrofit for in-service Learjet 40, Learjet 45, Learjet 70 and Learjet 75 aircraft. Customers can have the system installed at all Bombardier Service Centres and Authorized Service Facilities throughout the United States.
“Learjet aircraft are renowned productivity tools, and this enhancement ensures that our customers have the connectivity they need to maximize their time in the air,” said Michael Anckner, Vice President, Worldwide Sales, Learjet Aircraft and Corporate Fleets, Bombardier Business Aircraft. “With various upgrades available for our large fleet of in-service aircraft and the recent unveiling of our value-added Learjet 75 Liberty aircraft, there’s never been a better time to own a Learjet.”
The new and significantly faster 4G service uses Gogo AVANCE L5, which is lightweight and compact, accesses the Gogo Biz 4G ground network of more than 250 towers and delivers seamless connectivity over the continental U.S. and large parts of Canada and Alaska. Designed specifically for business aircraft, the system offers audio and video streaming as well as faster web surfing for a vastly improved user experience over previous-generation technology.
The iconic Learjet brand is synonymous with excellence in aviation, with more than 2,000 Learjet aircraft in service around the world. This fleet is a testament to the longevity and reliability of this platform, while the upcoming Learjet 75 Liberty signals a strong future for the world’s best light jet.
Bombardier is growing its worldwide support network, including a new service centre at Miami-Opa Locka Executive Airport and the recent addition of two U.S. line maintenance stations in Teterboro and Van Nuys. In addition to providing this 4G connectivity upgrade to the Learjet fleet, Bombardier is also offering the latest update to the popular Garmin G5000 avionics suite aboard Learjet aircraft, which was recently certified by the U.S. Federal Aviation Administration and brings many workload-reducing improvements to the cockpit.
The Learjet 75 Liberty aircraft is on track to enter service in mid-2020. Its spacious cabin features a six-seat configuration that gives light jet passengers unprecedented freedom to stretch out. A standard pocket door delivers a quiet, productive flight coupled with the comfort of Bombardier’s signature smooth ride.
The Learjet 75 Liberty aircraft has a range of 2,080 nautical miles, able to connect Las Vegas to New York, Seattle to Washington, D.C., and Mexico City to San Francisco, nonstop.* This aircraft has the same operating costs as its competitors in the light jet category while offering the most spacious cabin, the fastest speed, the longest range and the smoothest ride. It is also a step up from other light jets in terms of safety standards, certified to the FAA’s more stringent Part 25 regulations, applicable to commercial airliners, unlike other light jets certified to Part 23 regulations.
WASHINGTON – Amtrak announced that it has named William J. Flynn as its next Chief Executive Officer and President. Flynn, a seasoned business leader with four decades of transportation and logistics experience, will begin his role on April 15, 2020. Flynn succeeds Richard Anderson, who joined Amtrak as CEO in July 2017. Anderson, who fulfills his three-year commitment to the company this year, will remain with Amtrak through the end of the year as a senior advisor to Flynn.
Flynn, 66, has been a successful leader across multiple modes of transportation, including rail, maritime and aviation. Most recently, he served 13 years with Atlas Air Worldwide Holdings, Inc., which serves the global air freight, military charter and passenger charter markets, as President and CEO and Board Chairman. He also held senior roles with CSX Transportation, Sea-Land Services, Inc., and GeoLogistics Corp.
“Bill is the right executive to lead us into the future,” said Amtrak Board Chairman Tony Coscia. “We’ve never been stronger as a company than we are today. We are modernizing the customer experience and delivering our service to more people. Bill has a consistent track record of growing and improving complex transportation businesses. We are confident he will build upon the strong foundation of record-setting growth and improvement set by the Board, Richard and the entire Amtrak team.”
In fiscal year 2019, Amtrak set new records in ridership, revenue and earnings. In 2020, Amtrak is on pace to achieve operational breakeven for the first time in the company’s 49-year history. Additionally, Amtrak is investing billions in capital assets and is undertaking the largest fleet renewal in company history, with new high-speed Acela trains entering service on the Northeast Corridor next year.
“Amtrak’s future is incredibly bright and I’m excited to join the team,” said Flynn. “Amtrak service is vital to millions of Americans across the nation and by improving the customer experience, driving safety, and strengthening our partnership with states and other stakeholders, we can do much more for the American people. Tony, Richard and Amtrak’s dedicated employees have done an amazing job modernizing the company for the 21st Century. It’s a privilege to join them in continuing this work and advancing something as important as Amtrak’s mission.”
“I congratulate the Board on selecting Bill to lead Amtrak into its 50th year and beyond,” said Anderson. “Bill brings deep expertise across all aspects of transportation and a true passion for the customer. As the company refleets our equipment, expands our services and advances key infrastructure projects like the Gateway Program, it will require the steady leadership and relentless drive for improvement that I know Bill can provide.”
Embraer (ERJ) delivered a total of 198 jets in 2019, of which 89 were commercial aircraft and 109 were executive jets (62 light and 47 large), which represents an increase of 9% compared to 2018, when the Company delivered a total of 181 jets. The deliveries were within the outlook ranges for 2019 of 85 to 95 for the commercial aviation market and of 90 to 110 for the business aviation market. In the fourth quarter of 2019, Embraer delivered 81 jets, being 35 commercial aircraft and 46 executive jets (20 light and 26 large). As of December 31, the firm order backlog totaled USD 16.8 billion. See details below:
Deliveries by Segment
4Q19
2019
Commercial Aviation
35
89
EMBRAER 175 (E175)
22
67
EMBRAER 190 (E190)
2
5
EMBRAER 195 (E195)
1
3
EMBRAER 190-E2 (E190-E2)
4
7
EMBRAER 195-E2 (E195-E2)
6
7
Executive Aviation
46
109
Phenom 100
4
11
Phenom 300
16
51
Light Jets
20
62
Legacy 650
3
5
Legacy 450
10
15
Legacy 500
5
11
Praetor 500
3
3
Praetor 600
5
13
Large Jets
26
47
TOTAL
81
198
In the fourth quarter of 2019, Embraer delivered the first Praetor 500 business jet to Flexjet, a global leader in private jet travel, just over one year after its announcement at the 2018 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE).
Embraer also announced the expansion of its Executive Jets Service Center at Fort Lauderdale-Hollywood International Airport (KFLL), expanding its service capacity through a lease agreement with Jetscape Services for a dedicated hangar. Embraer’s presence in Florida is strategic for its Executive Jets customers throughout the Southern United States, the Caribbean and Central America as well as for those whose travel frequently brings them through South Florida.
In the same period, Embraer delivered the second KC-390 Millennium to the Brazilian Air Force and the contract with the Portuguese Government for a firm order for five KC-390 airlifters was included in Embraer’s backlog in the fourth quarter of 2019.
At the Dubai Air Show, Embraer announced the name and designation of its multi-mission medium aircraft, the Embraer C-390 Millennium. The new designation reflects increased flexibility and value for operators that look for a transport/cargo aircraft to perform airlift and air mobility missions, among others. In addition, Embraer and Boeing announced that the joint venture to promote and develop new markets for the C-390 Millennium multi-mission airlift and air mobility aircraft will be called Boeing Embraer – Defense. The organization will only be operational after the companies’ joint venture receives regulatory approvals and meets closing conditions.
Also during the event in Dubai, Embraer announced two contracts for commercial aircraft: a contract with Air Peace for three additional E195-E2s, confirming purchase rights from the original contract and a firm order for three E190 jets with CIAF Leasing.
Embraer welcomed three new E2 operators. Helvetic Airways, from Switzerland, and Air Kiribati, national airline of the Republic of Kiribati, received its first E190-E2 jets, while Binter, of Spain, received its first E195-E2. Embraer also signed firm orders with SkyWest, for 20 E175 that will be operated by American Airlines, and with Congo Airways for two E175 aircraft, with purchase rights for a further two.
SINGAPORE (Reuters) – Competition is cranking up in the world of turboprops.
For years turboprops were an ignored corner of the aircraft industry, accounting for about 120 aircraft a year compared with the more than 1,000 jets made by giants Airbus and Boeing.
But growing rivalries in the turboprop business cut through a Singapore Airshow depleted by coronavirus this week.
While intercontinental jet travel is vulnerable to trade wars and disruptions such as epidemics, regional development in archipelago nations like Indonesia is favouring the turboprop.
The market has been dominated for years by Europe’s ATR, jointly owned by Airbus and Italy’s Leonardo, which enjoys a relatively undisturbed lion’s share of the market with a small slice also held by the Canadian-owned De Havilland Dash 8.
But the commercial arm of Brazil’s Embraer is sharpening a pitch to return to the market and Chief Executive John Slattery told Reuters he expected a decision by the end of the year.
“We should be positioned in the mid-to-late fourth quarter to bring a business case with a recommendation to our board,” he said in an interview.
In a sign that the development is accelerating, Slattery said he had held talks with three potential engine suppliers – Rolls-Royce, General Electric and Pratt & Whitney Canada, part of the engine unit of United Technologies.
“We are fully engaged with engine manufacturers now and meeting here at the air show…We are excited by where we are.”
Until now, planemakers have found it difficult to justify the estimated $2-4 billion investment needed to develop a new turboprop, despite its efficiency on relatively short flights.
The market has been stagnant at about 120 deliveries a year and demand for the planes is dependent on volatile oil prices, with turboprops displacing small jets when prices are high.
The thrumming noise of the propellor-driven turboprop also puts some passengers off, travel experts say, even though many in the industry say that reputation is already out of date.
Slattery said quiet new engine technology and advances in passenger comfort would stimulate demand.
“We believe the market opportunity going forward is significantly different to what past decades have shown.”
COMPETITION BOOST
China has already entered the fray with its planned MA700.
At ATR’s bright-red stand inside Singapore’s exhibition hall, Chief Executive Stefano Bortoli shrugged off the threat of a comeback by Embraer which already makes smaller turboprops.
“I think once Embraer will let us know their decision you will have our comments. At this point in time it is simply commenting on opinions. Not that we will stand still,” he said.
The fundamental shape of the two-aircraft ATR family seating 40-78 people has not changed in about 30 years, but the aircraft was modernised with the -600 variant around a decade ago.
ATR recently launched a freighter and a version designed for use on short runways, which has opened opportunities in markets such as Japan and Papua New Guinea, where PNG Air emerged as a launch customer this week.
“The approach we’ve taken…is let’s consolidate the platform that we have…and when the right time comes and there are solid options available, let’s go for that,” Bortoli said.
ATR shareholders have clashed in the past about whether to launch a bigger new 90-seater, with Toulouse-based Airbus blocking the investment. But industry analysts say ATR would have to consider responding to a new plane from Embraer.
The prospect of greater competition in turboprop adds zest to efforts by Embraer to complete a tie up with Boeing, which has agreed to acquire control of its commercial division.
The European Commission has extended its scrutiny of the $4 billion deal, fearing that it would narrow options for airlines.
Slattery reiterated Embraer would only have the appetite to invest in a new turboprop in the context of the Boeing venture.
He declined to elaborate but industry experts say it is a signal to Europe that the Boeing deal would improve choice for airlines by prompting ATR to come up with its own new product.
One European source said it remained doubtful whether Boeing would support a new turboprop once it gained control of Embraer, but analysts note the U.S. planemaker has not yet ruled it out.
(Reporting by Tim Hepher, Jamie Freed; editing by David Evans)
FILE PHOTO: Groundcrew prepare a Liat airlines ATR 42 plane on the tarmac at Barbados’ Grantley Adams International Airport
Travellers in the US are set to enjoy more choice in the air, with the formal launch of Breeze Airways announced last week.
Previously known by the code name “Moxy”, the new airline is the brainchild of experienced airline executive David Neeleman, who is renowned for having established four successful airlines during his career.
With the experience of establishing the likes of Morris Air, WestJet, Jet Blue and Azul, each of Neeleman’s new entrants are notable for introducing a variety of innovations to the market.
Today considered commonplace; leading customer experience improvements include e-ticketed bookings, inflight TV streaming and the opening up of routes to city pairs previously not served by existing carriers.
Expansion at Bombardier’s London Biggin Hill service centre will double the facility’s footprint to nearly 250,000 square feet
Increased capacity will benefit more operators of Bombardier business aircraft, including the new Global 7500 jet
London Biggin Hill Airport, February 5, 2020 – Bombardier proudly announced today the expansion of its London Biggin Hill service centre with the construction of a new and larger facility nearing 250,000 square feet (approximately 23,225 square metres) to replace its existing hangars. Scheduled to be operational by mid-2022, the new service centre will provide customers in the region with extended maintenance support and reinforce Bombardier’s customer service experience in Europe.
The facility will provide the space and flexibility to offer a full range of maintenance and refurbishment services on Bombardier’s vast portfolio of products, and has the capacity to accommodate as many as 14 Global7500 aircraft at the same time. The expansion will introduce sought-after capabilities and state-of-the-art installations, such as component painting and interior refurbishment capabilities, component repair and overhaul workshops and training rooms. The site will also ensure a quick response to its customers’ repair needs with the integration of a brand-new parts depot. Over the next several years, this significant expansion will bring the facility’s workforce to more than 250 employees and beyond to meet expanding demand.
“With the expansion of the London Biggin Hill service centre, Bombardier is taking another step in showing its unwavering commitment to providing customers with industry-leading services on a global scale, and the OEM expertise they rightfully deserve,” said Jean-Christophe Gallagher, Vice President and General Manager, Customer Experience, Bombardier Aviation. “Europe continues to be a strong market for business aviation, and we’re glad to show our commitment to our customers with this important investment in the region.”
Bombardier’s London Biggin Hill service centre was inaugurated in 2017 and offers tip-to-tail heavy maintenance capabilities on Learjet, Challenger and Global families of aircraft. The site is fully equipped to perform scheduled and unscheduled maintenance, modifications and avionics installations, and paint repair services. In 2019, the service centre added enhanced interior repair and refurbishment activities.
“The expansion of Bombardier’s service centre and the enhancement of its service and maintenance capabilities is a testament to the dynamism and attractiveness of the Biggin Hill Airport,” said Robert Walters, Commercial Director of London Biggin Hill Airport. “Bombardier has been a tremendous partner and, with this announcement, demonstrates its strong commitment to the continued growth of our world-class aviation hub.”
This expansion comes on the heels of numerous announcements in Bombardier’s vast support network, including the announcements of a new service centre at Miami-Opa Locka Executive Airport and of an expanded Singapore service centre, the recent addition of two U.S. line maintenance stations in Teterboro and Van Nuys, and the expansion of the Mobile Response Team (MRT) with a new Challenger 300 aircraft based in Munich, Germany.
FILE PHOTO: FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse
PARIS/LONDON/WASHINGTON (Reuters) – Airbus <EADSY> bribed public officials and hid the payments as part of a pattern of worldwide corruption, prosecutors said on Friday as the European planemaker agreed a record $4 billion settlement with France, Britain and the United States.
The disclosures, made public after a nearly four-year investigation spanning sales to more than a dozen overseas markets, came as courts on both sides of the Atlantic formally approved settlements that lift a legal cloud that has hung over Europe’s largest aerospace group for years.
“It was a pervasive and pernicious bribery scheme in various divisions of Airbus SE that went on for a number of years,” U.S. District Judge Thomas Hogan said.
The deal, effectively a corporate plea bargain, means Airbus has avoided criminal prosecution that would have risked it being barred from public contracts in the United States and European Union – a massive blow for a major defence and space supplier.
Prosecutors said individuals could still face criminal charges, however.
Airbus, whose shares closed down 1%, has been investigated by French and British authorities for alleged corruption over jet sales dating back more than a decade. It has also faced U.S. inquiries over suspected violations of U.S. export controls.
“In reaching this agreement today, we are helping Airbus to turn the page definitively” on corrupt past practices, French prosecutor Jean-Francois Bohnert said.
France’s financial prosecutor said the company had also agreed to three years “light compliance monitoring” by the country’s anti-corruption agency.
The U.S. Department of Justice said the deal was the largest ever foreign bribery settlement.
CODE NAME ‘VAN GOGH’
In a packed hearing at London’s Royal Courts of Justice, an Airbus lawyer said the settlements “draw a clear line under the investigation and under the grave historic practices”.
Outlining detailed findings, the UK’s Serious Fraud Office (SFO) said Airbus had hired the wife of a Sri Lankan Airlines executive as its intermediary and misled Britain’s UKEF export credit agency over her name and gender, while paying $2 million to her company. The airline could not be reached for comment.
FILE PHOTO: A sign welcomes visitors to the General Motors Lordstown Complex assembly plant in Warren, Ohio
WASHINGTON (Reuters) – Electric pickup truck start-up Lordstown Motors is pursuing a $200 million loan from a U.S. Energy Department program to retool a former General Motors <GM> factory in northeast Ohio, Chief Executive Steve Burns told Reuters.
Burns met with Energy Secretary Dan Brouillette on Monday for about an hour and the company was holding additional talks with officials on Tuesday from the Energy Department’s Loan Program Office.
“We think we are worthy of government help. We don’t want a handout – we want a loan,” Burns told Reuters in an interview. “It’s just going to be more jobs faster if we get it. We are viable without it.”
Burns disclosed the company plans to unveil a drivable version of its electric truck at the Detroit auto show in June. It hopes to begin production by year-end.
The Energy Department declined comment.
Burns said the company hopes to receive funding from the Energy Department’s Advanced Technology Vehicles Manufacturing program that in 2009 awarded loans to Ford Motor Co <F>, Tesla Inc <TSLA> and Nissan Motor Co <NSANY> to retool factories, but has not issued loans since 2011. Nissan and Tesla previously repaid their loans.
The fate of the sprawling plant became a political lightning rod after GM announced its planned closure in November 2018, drawing condemnation from U.S. President Donald Trump and many U.S. lawmakers.
A bipartisan group of Ohio lawmakers wrote Brouillette last week offering “strong support” for the loan, saying northeast Ohio was dealt a “severe blow” by the plant closing.
Lordstown Motors Corp, which is 10% owned by Workhorse Group Inc <WKHS>, bought the plant and equipment for $20 million as part of its ambitious plan to begin building electric pickup trucks by the end of 2020.
“It’s cool to bring something back to life,” Burns said.
The company is working to raise additional funding and is in advanced talks with a large strategic investor, Burns said.
GM last year agreed to loan Lordstown Motors $40 million to acquire and retool the plant. Burns hopes to repay GM’s loan “in a few weeks.”
Burns plans to start crash-testing vehicles in July, hiring about 400 hourly workers in September and to begin production in November or December.
Electric vehicle startup Rivian, backed by Amazon.com Inc <AMZN> and Ford, plans to build an electric pickup truck and companion starting in late 2020. GM plans to build its first electric pickup truck starting in late 2021. Tesla plans to start building its electric Cybertruck in late 2021.
(Reporting by David Shepardson; Editing by Nick Zieminski)
