Mesa Air Group, Inc. (NASDAQ: MESA) today announced that it has completed a second closing through its previously disclosed five-year Loan and Guarantee Agreement under the Coronavirus Air, Relief, and Economic Security Act (CARES Act).
The Loan Agreement provided a secured term loan facility of up to $200 million. On October 30, 2020, Mesa borrowed $43 million under the facility and today, completed a second closing to borrow an additional $152 million. These funds may be used for general corporate purposes and operating expenses, to the extent permitted by the CARES Act.
“I’d like to again express my sincere gratitude to everyone involved in making this deal happen. Our people have been working very hard to ensure Mesa and its employees are prepared to weather this storm”, said Jonathan Ornstein, Chairman and Chief Executive Officer. “These additional funds will substantially benefit our airline and the communities we serve as we continue to navigate the obstacles created by the pandemic”.
In connection with the additional $152 million drawn under the facility, Mesa issued warrants to the U.S. Treasury to purchase 3,819,095 shares of common stock, no par value. The Warrants have a five-year term from the date issued, were issued pursuant to the Warrant Agreement, and have substantially identical terms to the warrants issued on the initial closing.
F-15QA1 and F-15QA2 Air to Air. Includes Arch Fly-by, St. Louis, MO. MSF20-0028 Series.
– Qatar Emiri Air Force to receive aircrew and maintenance training support for F-15QA aircraft
– Comprehensive support includes pre-delivery training and maintenance, and in-country services support
Boeing [NYSA: BA] today acknowledged three foreign military sales contracts with the U.S. Air Force for training services and support in the Middle East valued at more than $800 million.
The first previously unannounced contract was awarded in 2019 and will support the Qatar Emiri Air Force (QEAF) with F-15QA program management, maintenance and aircrew training valued at $240 million over a five-year contract period.
Boeing also received a separate not-to-exceed $68 million contract to provide maintenance and logistics support for the QEAF during their pre-delivery training for the F-15QA aircraft, which will commence early next year. The QEAF will send pilots and weapon system operators to the U.S., where the aircrews will learn how to independently operate the F-15QA ahead of receiving their new aircraft. Training will include in-person instruction, simulation events and flying operations and will be held near Boeing’s F-15 production facility in the U.S. through mid-2021.
Following this, Boeing will establish and operate an aircrew and maintenance training center for the QEAF at Al Udeid Air Base, Qatar, through 2024.
A third contract awarded in November and valued at more than $500 million will provide the QEAF with in-country spares and logistics support once the aircraft are delivered to Qatar.
“The tailored training and sustainment delivered by our team, coupled with Boeing’s platform expertise, allows us to deliver a holistic solution to our Qatari customer so they can optimize the full capability of their fleet with high availability rates,” said Tim Buerk, director of Middle East defense services for Boeing. “We look forward to our continued partnership with Qatar and further supporting their mission readiness needs.”
The F-15QA is an advanced variant of the undefeated F-15 aircraft. The Advanced F-15 features next-generation technologies that offer more speed, range and payload than any other fighter in its class. Boeing will deliver 36 F-15QA aircraft to Qatar starting in 2021.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
F-15QA1 and F-15QA2 Air to Air. Includes Arch Fly-by, St. Louis, MO. MSF20-0028 Series.
St. George, Utah, Sept. 29, 2020 /PRNewswire/ — SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today announced that it and its wholly-owned subsidiary SkyWest Airlines, Inc. have entered into a five-year Loan and Guarantee Agreement with the U.S. Treasury Department which provides SkyWest Airlines with a secured term loan facility to borrow up to $573 million under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). On September 29, 2020, upon entry into the Loan Agreement, SkyWest Airlines borrowed $60 million under the facility and has until March 26, 2021 to determine if it will borrow additional amounts in up to two subsequent borrowings.
The interest rate under the secured term loan facility is LIBOR plus 3.0% with no amortization. In consideration for the loan, SkyWest is obligated to issue warrants to the U.S. Treasury Department to purchase shares of common stock based on, and in connection with, amounts drawn under the secured term loan facility. In connection with the initial $60 million draw under the facility, SkyWest issued warrants to purchase 211,416 shares of common stock at an exercise price of $28.38 per share.
The Loan and Guarantee Agreement also includes certain restrictions, including restrictions on the payment of dividends and the repurchase of SkyWest shares. The Secured Loan is collateralized by aircraft engines and aircraft parts.
The first Brazilian Gripen E, designated by Brazilian Air Force (FAB) as F-39 Gripen, concluded its first flight in Brazil. The aircraft flew from the airport in Navegantes to Embraer’s facility in Gavião Peixoto. The official presentation of the aircraft is scheduled to take place during the Aviator’s Day and the Brazilian Air Force Day ceremony in Brasilia, celebrated on the 23rd of October.
The President and CEO of Embraer Defense & Security, Jackson Schneider, highlighted the scope of this partnership: “Embraer will play a leading role in the execution of the Gripen programme in Brazil and will be responsible for systems development, integration, flight testing, final assembly, and delivery of the aircraft in support of Brazilian Air Force operations. In terms of technology transfer, the Gripen programme is a great opportunity to increase our knowledge in the development and manufacturing of advanced combat aircraft.”
The Brazilian Minister of Defence, Fernando Azevedo e Silva also highlighted the importance of sharing experiences arising from cooperation between Brazil and Sweden: “Gripen increases the operational capacity of the Brazilian Air Force and promotes a partnership that fosters research and industrial development in both countries,” the Minister of Defence declared.
For the Air Force Commander, Lt. Brig. Antonio Carlos Moretti Bermudez, the arrival of the first F-39 Gripen aircraft is a major milestone for the project: “It is an immense satisfaction for the Brazilian Air Force to see this aircraft flying on national territory. The F-39 Gripen, the new Brazilian Air Force multi-mission aircraft, will be the backbone of Fighter Aviation and it reaffirms the FAB’s commitment to maintaining the country’s sovereignty and to defend the twenty-two million square kilometres under its responsibility”, Lt. Brig. Antonio Carlos Moretti Bermudez points out.
The flight test programme will be expanded to include the Gripen Flight Test Center at Embraer in Gavião Peixoto, which will be fully integrated with the test programme already running at full phase at Saab in Linköping since 2017. Activities in Brazil will include testing of flight control system, environmental control system as well as tests in the aircraft in tropical climate conditions. In addition to the testing that is common for the Gripen E Programme, unique features of the Brazilian aircraft, such as weapons integration as well as the Link BR2 communication system – which provides encrypted data and voice communication between the aircraft – will be tested in Brazil.
The production aircraft will be delivered to the Brazilian Air Force, at Wing 2 in Anápolis (Goiás State), by the end of 2021.
In 2015, Mobile, Alabama became home to Airbus’ first US-based commercial aircraft manufacturing facility. Now celebrating five years of production, it has grown from an initial workforce of around 250 staff producing A320 Family aircraft, to 1,000 employees building both the A220 and A320 aircraft families. To date, the factory has delivered more than 180 A320 Family aircraft to eight customers; aircraft which have subsequently flown 60 million passengers 500 million miles.
For Airbus, commercial aircraft production in Mobile signified two things: its position as a truly global aircraft company, and that it was also a truly American manufacturer. With the addition of this brand new US operation to the company’s A320 production network in Europe and Asia, Airbus had strategically augmented its worldwide industrial base in America – the largest single-aisle aircraft market in the world – to be closer to its US-based customers and key supplier partners.
Enter the A220 Family
The journey of Airbus’ investment in Mobile took a major stride in October 2017 when it announced the decision to introduce a second aircraft programme to the site: the A220 Family, entailing a second assembly line to be built adjacent to the original A320 plant – which would also complement the A220’s primary production site in Mirabel, Quebec, Canada. The arrival into the US of this newest Single-Aisle Family member was an important testament to the confidence that Airbus had in Mobile, and the confidence in the team there to make it happen. Fast-forward to the present, and the first US-built A220 is already in its final stages of manufacture for Delta Air Lines – which will roll-out in the very near future.
Prior to the introduction of the A220 and expansion of the A320 facilities, the Mobile site sat on 116 acres. Today Airbus has added another 70 acres of real-estate which accommodates: two new final phase/flight-line hangars (four bays); an enlarged delivery centre with four new aircraft parking spaces; a ‘pre-transshipment’ hangar and of course the new ‘flow-line’ final assembly line (FAL) building itself. Notably, the delivery centre will be named after one of the company’s former leaders, Tom Enders. Enders supported and drove the establishment of a new Airbus aircraft factory in the US during his tenure as CEO of Airbus.
Doubling local industrial footprint in five years
When complete, nearly US$1 billion will have been invested in Mobile – to create new state-of-the-art facilities designed and built primarily by local companies. In short, Airbus has doubled its footprint there in just five years – establishing a new manufacturing home for Airbus’ Single-Aisle Family. Moreover, a recent study* concluded that Airbus’ total economic impact throughout the state of Alabama in five years was US$1.2 billion, supporting more than 15,000 jobs through construction and payroll.
A Northland programme to help prisoners rejoin society by building their skills and confidence through rail work is an exciting new initiative which will benefit the community, KiwiRail Group Chief Executive Greg Miller says.
Regional Economic Development Minister Shane Jones has announced $640,000 funding for KiwiRail’s “Second-Steppers” programme, which will provide training and support for the reintegration of 20 prisoners back into Northland’s community.
“Government investment to revitalise Northland’s rail line is already supporting local businesses and creating jobs in Northland. This additional funding means KiwiRail will be able to give something more back to the community,” Mr Miller says.
“Everyone knows how difficult it can be for prisoners to successfully reintegrate into the community. Giving them steady work, mentoring and manaaki tānga will enable them to learn new skills and assist with rebuilding their dignity.
“To start with, five carefully selected and vetted prisoners from Northland Region Corrections Facility, near Kaikohe, will be carrying out ‘release to work’ for us for six months. They’ll each go through a special course that provides a combination of health and safety, track maintenance, and personal development training. They’ll also be learning in an environment that offers Kaitohutohu (mentors) who can help support the growth of each participant.
“We’ve been building our workforce in Northland, and we want to bring on more local staff. This programme is designed to help up-skill the prisoners, with the intention to offer them full time work at the end.
“KiwiRail has a strong Māori network, and we want to inspire our next leaders and strengthen whakawhanaungatanga (relationships) with the communities around our rail operations.
“Rail will help to transform Northland and supporting prisoners to rejoin and contribute to society is a small but important part of that effort.”
KiwiRail expects the first group of five prisoners to begin work at our Whangarei Rail Depot in late September/early October. In total, 20 prisoners are expected to go through the Second-Steppers programme over the next two years.
KiwiRail is working with Corrections in selecting prisoners for the programme. There is a thorough pre-approval process and a number of factors are taken into account when assessing a prisoner’s suitability, including the prisoner’s security classification, their release and parole eligibility dates, their behaviour and potential impact on victims. Prisoners will be subject to electronic monitoring while on our sites and while travelling to and from Northland Region Corrections Facility each day.
Having earned its reputation as the new-generation aerial tanker of choice for military services worldwide, Airbus’ A330 Multi Role Tanker Transports (MRTT’s) are now being outfitted for their multi-mission duties in an optimised industrial process – enabling five aircraft to undergo the conversion every year.
The A330 MRTT is based on Airbus’ popular A330 widebody passenger airliner, with the aircraft produced on the company’s commercial airplane final assembly line in Toulouse, France. Once their initial built-up is complete, they are flown to Airbus’ military aircraft facility in Getafe, Spain to be transformed with hardware and systems for their dual roles as an air-to-air refuelling platform and an airlifter for troops and cargo.
Thousands of new parts integrated
During the conversion, Airbus teams install some 16,000 types of new components and approximately 450 new electrical harnesses (for a total cabling length of more than 50 km.), as well as 6,000 brackets and 1,700 connectors.
With 42 A330 MRTTs delivered to date, Airbus’ has reduced the end-to-end transformation time by one month, introducing increased digitalization and applying the “takt” principle of lean production methodology – in which the aircraft moves through the conversion with zero hours pending and zero work orders open.
The digitalization includes the increasing use of Microsoft HoloLens mixed reality headsets instead of computer tablets. With 80 to 90 work orders now produced with HoloLens, the goal is to apply the system during 2020 for 50% of overall work orders, mainly for electrical and hydraulic installations.
A key element of the conversion is installing the A330 MRTT’s air-to-air refuelling hardware. All aircraft are equipped with hose and drogue units, and most customers have opted for Airbus’ highly capable fly-by-wire Aerial Refuelling Boom System (ARBS) – which provides enhanced controllability during in-flight fuel transfers to receiver airplanes.
The A330 MRTT transformation process includes locating the Airbus-developed Air Refuelling Console in the cockpit area behind the pilots. Containing seats for two crew members, this station enables the aerial refuelling to be remotely controlled, aided by an advanced high-resolution observation system with panoramic 3D-vision for operations day and night.
On the A330 MRTT’s main deck, the aircraft’s widebody cross-section can be configured a variety of roles, from the transportation of troops and personnel with capacities for 268 passengers in a two-class configuration, to aeromedical evacuation – accommodating two intensive care units, 16 stretchers, along with seating for medical staff and passengers.
Customers from around the world
Airbus delivered its initial A330 MRTT in December 2009, with this no. 1 aircraft received by the Royal Australian Air Force. Today, A330 MRTTs are flown by Australia, France, Singapore, Saudi Arabia, South Korea, the United Emirates and United Kingdom – logging a combined total of more than 200,000 flight hours.
A total of 60 A330 MRTTs have been ordered for operations at the service of 13 nations.
Air New Zealand has begun services to and from Nadi, Fiji to assist the Fijian government in repatriating its citizens.
Flight NZ952 took off from Auckland just after 11.00 this morning with Fijian passport holders on board, bound for Nadi, Fiji. The flight arrived in Fiji just after 2.00 pm, local time. A return service is also expected to repatriate New Zealanders who have been in Fiji since Covid-19 travel bans were implemented.
The repatriation flights to Fiji are being carried out in accordance with the Travel Advice issued by the Government of Fiji. On arrival in Fiji, all passengers are required to enter a government-designated quarantine facility for 14 days and will then be required to complete a further 14 days home isolation.
Air New Zealand’s Country Manager Fiji, Zeena Sahib says the airline is very happy to be supporting the Government of Fiji with the safe return of Fijians to their home country.
“There are a number of Fijian passport holders who have been in New Zealand for an extended period of time due to COVID-19 related border restrictions. Air New Zealand is very pleased to be assisting the Fijian government with ensuring their safe return home.”
Customers who wish to travel to Fiji, and who meet border restrictions for entry, are advised to contact Air New Zealand at groups@airnz.co.nz to arrange travel.
Customers already booked on an Air New Zealand flight to Fiji who do not meet entry requirements are encouraged to visit the Covid-19 FAQs section of the Air New Zealand website where they will automatically be able to put their flights into credit.
Super Hornet to become the fourth Boeing platform for the flight demonstration team.
Boeing has modified Blue Angels since 2008 and delivered 23 aircraft to date.
Boeing [NYSE: BA] has delivered the first Super Hornet test aircraft for the U.S. Navy’s Blue Angel flight demonstration squadron. The unpainted aircraft now enters the flight test and evaluation phase at Naval Air Station Patuxent River in Maryland. Boeing expects to deliver a total of 11 aircraft for the squadron in 2020.
“The Super Hornet is an iconic representation of excellence in naval aviation,” said ret. Admiral Pat Walsh, vice president of U.S. Navy & Marine Corps Services for Boeing. Walsh flew with the Blue Angels from 1985 to 1987 as the Left Wingman (#3) and Slot Pilot (#4). “As Boeing continues to support the operational fleet of Navy Super Hornets, we are excited to see this platform enter a critical phase of its journey to joining the team.”
The flight demonstration squadron has flown Boeing or Boeing-heritage aircraft for more than 50 years, starting with the F-4J Phantom II in 1969, and then moving to the A-4F Skyhawk. The team currently operates the F/A-18A-D Hornet.
Boeing converts F/A-18 Hornets and Super Hornets into Blue Angels at the company’s Cecil Field facility in Jacksonville, Florida. Major modifications include the addition of an oil tank for the smoke-generation system, fuel systems that enable the aircraft to fly inverted for extended periods of time, civilian-compatible navigation equipment, cameras and adjustments for the aircraft’s center of gravity.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
Deutsche Lufthansa AG has been informed by the Economic Stabilization Fund (WSF) of the Federal Republic of Germany that the WSF has approved the stabilization package for the company. The Executive Board also supports the package.
The package provides for stabilization measures and loans of up to EUR 9 billion.
The WSF will make silent participations of up to 5.7 billion euros in total in the assets of Deutsche Lufthansa AG. Of this amount, approximately EUR 4.7 billion is classified as equity in accordance with the provisions of the German Commercial Code (HGB) and IFRS. In this amount, the silent participation is unlimited in time and can be terminated by the company on a quarterly basis in whole or in part. In accordance with the agreed concept, the remuneration on the silent participations is 4% for the years 2020 and 2021, and rises in the following years to 9.5% in 2027.
Furthermore, the WSF will subscribe to shares by way of a capital increase in order to build up a 20% stake in the share capital of Deutsche Lufthansa AG. The subscription price will be 2.56 Euro per share, so that the cash contribution will amount to about 300 million Euro. The WSF may also increase its stake to 25% plus one share in the event of a takeover of the company.
In addition, in the event of non-payment of remuneration by the Company, a further portion of the silent participation is to be convertible into a further shareholding of 5% of the share capital at the earliest from 2024 and 2026 respectively. The second conversion option, however, only applies to the extent that the WSF has not previously increased its shareholding in connection with the above-mentioned takeover case. Conversion should also be possible for dilution protection. Subject to the full repayment of the silent participations by the company and a minimum sale price of EUR 2.56 per share plus an annual interest of 12%, the WSF undertakes, however, to sell its shareholding in full at the market price by 31 December 2023.
Finally, the stabilization measures are supplemented by a syndicated credit facility of up to EUR 3 billion with the participation of KfW and private banks with a term of three years. This facility is still subject to the approval of relevant bodies.
The expected conditions relate in particular to the waiver of future dividend payments and restrictions on management remuneration. In addition, two seats on the Supervisory Board are to be filled in agreement with the German government, one of which is to become a member of the Audit Committee. Except in the event of a takeover, the WSF undertakes not to exercise its voting rights at the Annual General Meeting in connection with the usual resolutions of ordinary Annual General Meetings.
The stabilization package still requires the final approval of the Management Board and the Supervisory Board of the company. Both bodies will come together shortly to adopt resolutions on the stabilization package. The capital measures are subject to the approval of an extraordinary general meeting.
Finally, the stabilization package is subject to the approval of the European Commission and any competition-related conditions.
