Tag: Partners (Page 7 of 10)

China’s HNA Steps Up Efforts to Sell Swissport at Big Discount

February 5, 2020 / WIL BALDWIN

LONDON/FRANKFURT, Feb 5 (Reuters) – China’s HNA Group is resuming efforts to find a buyer for airport luggage handler Swissport despite facing a loss of several hundred million dollars on its initial $2.8 billion investment, four sources familiar with the matter told Reuters.

The Chinese conglomerate has rekindled talks with several heavyweight investment funds as it needs to raise cash to cut its debts, the sources said.

Rothschild is helping HNA identify prospective bidders, who are hoping to buy the Zurich-based business on the cheap after previous attempts to sell it stalled last year, the sources said, speaking on condition of anonymity because the process is not public.

U.S. buyout funds Apollo Global Management Inc and Cerberus as well as Canadian asset manager Brookfield have come forward to revisit a possible acquisition of Swissport, the sources said.

Two other U.S. investors – Bain Capital and Centerbridge Partners – are also looking to take part in a new auction, two of the sources said, adding interest from industry buyers had waned.

HNA is hoping to limit its losses and recoup at least $2.3 billion from the sale, one of the sources said.

But offers are expected to value Swissport at about $2 billion, two of the sources said, with one adding Apollo had previously offered $2.1 billion.

This means HNA may need to swallow a loss of more than $500 million to offload the business, which has annual core earnings of about $270 million, they said.

HNA, Apollo, Cerberus, Brookfield and Bain declined to comment, while Centerbridge was not available.

HNA bought Swissport for 2.7 billion Swiss francs ($2.8 billion) in 2016 in a deal that was meant to complement its sprawling portfolio of investments in aviation, logistics and tourism.

But the Chinese giant had to look into cashing out at the start of 2018 when its liquidity challenges turned it into one of China’s most indebted companies and forced it to quickly sell assets.

The 20-year old company, led by chairman Chen Feng, came under pressure after embarking on an aggressive M&A spree in the United States and Europe with deals worth an overall $50 billion.

It made a push into the travel and tourism industry, buying a 25% stake in Hilton Worldwide Holdings Inc in 2016 and then branched out into financial services, becoming the leading investor in Deutsche Bank.

But its M&A binge resulted in cash flow problems, prompting a review of all its business interests overseas.

HNA initially considered a possible listing of Swissport on the Swiss SIX Exchange in 2018, but then opted for an outright sale.

Apollo and Cerberus, which bought Paris-based Worldwide Flight Services (WFS) in 2018, were both initial contenders for Swissport, but negotiations stalled after the Swiss company secured a refinancing package in August.

($1 = 0.9727 Swiss francs)

(Reporting By Pamela Barbaglia and Clara Denina in London and Arno Schuetze in Frankfurt; Editing by Mark Potter)

Embraer and SkyWest Sign Contract for 20 E175 Jets

January 30, 2020 / WIL BALDWIN

São José dos Campos, Brazil, January 30, 2020 – Embraer and SkyWest, Inc. (NASDAQ: SKYW) signed a firm order for 20 E175 jets in a 76-seat configuration. The order has a value of USD 972 million, based on 2019 list prices, and is already included in Embraer’s 2019 fourth-quarter backlog. Deliveries are expected to begin in the second half of 2020.

“Embraer and SkyWest enjoy a partnership marked by a longstanding history of service to the mainline carriers, and we relish the opportunity to break new ground,” said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. “Today, we are excited to announce that these 20 new aircraft will be the first E-Jets operated by SkyWest within the American Airlines network.”

“We’re pleased to continue advancing our position in the industry with this latest order of new Embraer aircraft,” said Chip Childs, President and Chief Executive Officer of SkyWest, Inc. “We appreciate the long-standing partnership with Embraer and look forward to operating this outstanding aircraft for all four of our mainline partners.”

Embraer’s relationship with SkyWest dates back to 1986, when SkyWest began operating the EMB 120 Brasilia turboprop. With this additional order for the E175, SkyWest has purchased more than 180 aircraft of this model since 2013 alone.

Embraer is the world’s leading manufacturer of commercial jets with up to 150 seats. The Company has 100 customers from all over the world operating the ERJ and E-Jet families of aircraft. For the E-Jets program alone, Embraer has logged almost 1,800 orders and 1,500 deliveries, redefining the traditional concept of regional aircraft.

American Airlines Donates $100,000 to Support Australian Bush Fire Recovery

January 28, 2020 / WIL BALDWIN

Airline partners with G’Day USA for Red Cross relief efforts

FORT WORTH, Texas — American Airlines donated $100,000 to help Australia recover from devastating bush fires that have burned more than 27 million acres to date. The donation, which was made through the Australian diplomacy program G’Day USA, will benefit the Australia chapter of the Red Cross.

“We are all affected by the heartbreaking images of the wildfires in Australia,” said American Airlines President Robert Isom. “American is proud to do what we can to assist in the recovery.”

This year, G’Day USA brought awareness and raised funds to assist with the Australian bush fires. The event is typically a celebratory dinner that honors the special relationship between Australia and the United States.

American also activated the airline’s disaster response fundraising platform, where customers and team members can assist those in need. From now through Jan. 31, AAdvantage® members can earn 10 miles for every dollar donated to the Red Cross with a minimum $25 donation.

“One of the best things Americans can do to support our friends in Australia is keep their travel plans and make new ones,” Isom said. “The Australian economy relies on its tourism business and nearly all the popular sites in Australia are unaffected by the fires.”

You can make your donation to the Australian bush fire recovery efforts by visiting the Red Cross website.

*** BE SURE TO SELECT – “AUSTRALIA BRUSHFIRES” BELOW THE – “I WANT TO SUPPORT” QUERY TO ENSURE YOUR DONATION REACHES TO CORRECT RECIPIENT!!! ***

New Boeing 777X Completes Successful First Flight

January 27, 2020 / WIL BALDWIN

Three hour, 51 minute flight marks new phase for rigorous test program
Largest and most fuel efficient twin-engine commercial jet expected to deliver in 2021

The new Boeing (NYSE: BA) 777X jetliner took to the skies today, entering the next phase of its rigorous test program. Based on the popular 777 and with proven technologies from the 787 Dreamliner, the 777X took off in front of thousands at Paine Field in Everett, Washington, at 10:09 a.m. local time for a three hour, 51 minute flight over Washington state before landing at Seattle’s Boeing Field.

“The 777X flew beautifully, and today’s testing was very productive,” said Capt. Van Chaney, 777/777X chief pilot for Boeing Test & Evaluation. “Thank you to all the teams who made today possible. I can’t wait to go fly your airplane again.”

Capt. Chaney and Boeing Chief Pilot Craig Bomben worked through a detailed test plan to exercise the airplane’s systems and structures while the test team in Seattle monitored the data in real time.

“Our Boeing team has taken the most successful twin-aisle jet of all time and made it even more efficient, more capable and more comfortable for all,” said Stan Deal, president and CEO of Boeing Commercial Airplanes. “Today’s safe first flight of the 777X is a tribute to the years of hard work and dedication from our teammates, our suppliers and our community partners in Washington state and across the globe.”

The first of four dedicated 777-9 flight test airplanes, WH001 will now undergo checks before resuming testing in the coming days. The test fleet, which began ground testing in Everett last year, will endure a comprehensive series of tests and conditions on the ground and in the air over the coming months to demonstrate the safety and reliability of the design.

The newest member of Boeing’s market-leading widebody family, the 777X will deliver 10 percent lower fuel use and emissions and 10 percent lower operating costs than the competition through advanced aerodynamics, the latest generation carbon-fiber composite wing and the most advanced commercial engine ever built, GE Aviation’s GE9X.

The new 777X also combines the best of the passenger-preferred 777 and 787 Dreamliner cabins with new innovations to deliver the flight experience of the future. Passengers will enjoy a wide, spacious cabin, large overhead bins that close easily for convenient access to their belongings, larger windows for a view from every seat, better cabin altitude and humidity, less noise and a smoother ride.

Boeing expects to deliver the first 777X in 2021. The program has won 340 orders and commitments from leading carriers around the world, including ANA, British Airways, Cathay Pacific Airways, Emirates, Etihad Airways, Lufthansa, Qatar Airways and Singapore Airlines. Since its launch in 2013, the 777X family has outsold the competition nearly 2 to 1.

About the Boeing 777X Family

The 777X includes the 777-8 and the 777-9, the newest members of Boeing’s market-leading widebody family.

Seat Count: 777-8: 384 passengers
(typical 2-class) 777-9: 426 passengers

Engine: GE9X, supplied by GE Aviation

Range: 777-8: 8,730 nautical miles (16,170 km)
777-9: 7,285 nautical miles (13,500 km)

Wingspan: Extended: 235 ft, 5 in. (71.8 m)
On ground: 212 ft, 8 in (64.8 m)

Length: 777-8: 229 ft (69.8 m)
777-9: 251 ft, 9 in (76.7 m)

For more information, please visit www.boeing.com/777X

Ford’s Vehicle Sales in China Tumble for Third Consecutive Year

January 12, 2020 / WIL BALDWIN

SHANGHAI (Reuters) – Ford Motor Co’s <F> China vehicle sales fell for a third consecutive year, by 26.1%, as it battles a prolonged overall sales decline in its second-biggest market that has hit demand for its mass-market Ford brand and sports utility vehicles.

The U.S. automaker delivered 146,473 vehicles in China in the fourth quarter, down 14.7% year-on-year, Ford said in a statement. In total, it sold 567,854 vehicles over 2019.

Ford has been trying to revive sales in China after its business began slumping in late 2017. Sales sank 37% in 2018, after a 6% decline in 2017.

Anning Chen, president and chief executive of Ford Greater China, said that while 2019 was a “challenging” year for the automaker, it saw its market share in the high-to-premium segment stabilize and its sales decline in the value segment start to narrow in the second-half of the year.

“The pressure from the external environment and downward trend of the industry volume will continue in 2020, and we will put more efforts into strengthening our product lineup with more customer-centric products and customer experiences to mitigate the external pressure and improve dealers’ profitability.”

The automaker plans to launch more than 30 new models in China over the next three years of which over a third will be electric vehicles. It has also said it would localize management teams by hiring more Chinese staff and aimed to improve relationships with joint venture partners.

New models it launched in the fourth quarter include a new Ford Escape version – for which the automaker said orders received so far have been much higher than expected – and the Lincoln Corsair, the first localized Lincoln model in China.

In China, Ford makes cars through a joint venture with Chongqing Changan Automobile Co Ltd and Jiangling Motors Corp Ltd (JMC). It has also said it would partner Zotye Automobile Co Ltd to sell lower priced cars.

Its larger U.S. rival General Motors Co <GM> last week said its sales in China fell 15% from a year earlier to 3.09 million vehicles in 2019, its second year of decline.

China’s auto market is set to contract by 2% in 2020 for the third year of decline, the China Association of Automobile Manufacturers (CAAM) forecast, due to a weaker economy and trade dispute with the United States.

Over 28 million vehicles were sold in 2018, down 3% from the prior year, while 2019 sales are likely to have declined 8% from the prior year, CAAM said.

(Reporting by Brenda Goh and Yilei Sun; Editing by Christian Schmollinger and Christopher Cushing)

A Ford model is seen during the China International Import Expo (CIIE), at the National Exhibition and Convention Center in Shanghai

Boeing Rolls Out First Space Launch System Core Stage for Delivery to NASA

January 8, 2020 / WIL BALDWIN

Teams at Stennis Space Center prepare for core stage hot-fire testing ahead of Artemis I lunar mission

Boeing [NYSE: BA] today delivered the core stage of NASA’s first Space Launch System (SLS) deep space exploration rocket, moving it out of the NASA Michoud Assembly Facility in New Orleans to the agency’s Pegasus barge.

The event marks the first time a completed rocket stage has shipped out of Michoud since the end of the Apollo program. SLS Core Stage 1 is the largest single rocket stage ever built by NASA and its industry partners.

The rollout follows several weeks of final testing and check-outs after NASA’s declaration of “core stage complete” during a December 9 Artemis Day celebration at Michoud.

NASA will transport the SLS core stage to its Stennis Space Center in Bay St. Louis, Mississippi, in the next few days for “Green Run” hot-fire engine tests later this year. After inspection and refurbishing for launch, the stage moves to Kennedy Space Center in Florida. At Kennedy, the core stage will be integrated with the Interim Cryogenic Upper Stage (ICPS) and NASA’s Orion spacecraft for the uncrewed Artemis I mission around the moon – the first launch of a human-rated spacecraft to the Moon since Apollo 17 in 1972.

“The Boeing SLS team has worked shoulder-to-shoulder with NASA and our supplier partners to face multiple challenges with ingenuity and perseverance, while keeping safety and quality at the forefront,” said John Shannon, Boeing SLS vice president and program manager.

SLS is the world’s most powerful rocket, evolvable and built to carry astronauts and cargo farther and faster than any rocket in history. Its unmatched capabilities will deliver human-rated spacecraft, habitats and science missions to the moon, Mars and beyond as part of NASA’s Artemis program.

“We are applying what we’ve learned from development of the first core stage to accelerate work on core stages 2 and 3, already in production at Michoud, as well as the Exploration Upper Stage that will power NASA’s most ambitious Artemis missions,” said Shannon.

Space Launch System Core stage 1 rollout from Michoud Assembly Facility to NASA’s Pegasus barge; for Green Run test. MSF20-0002 Series. Leanne Caret_President and CEO of Boeing Defense, Space & Security.

Delta Completes Tender Offer to Purchase Shares in LATAM

December 31, 2019 / WIL BALDWIN

Delta Air Lines has successfully acquired a 20 percent equity stake in LATAM Airlines Group S.A for approximately $1.9 billion.

Delta Air Lines has successfully completed its previously announced tender offer and has acquired a 20 percent equity stake in LATAM Airlines Group S.A for approximately $1.9 billion, an important milestone toward bringing together the leading airlines in North and South America. This investment continues Delta’s strategy of making equity investments in key airline partners around the globe.

“We look forward to working with LATAM to create a truly world-class partnership that will give our customers unparalleled access throughout the Americas,” said Steve Sear, Delta President — International and Executive Vice President — Global Sales. “Equity investments like this help create alignment within our partnerships as we bring together our brands, enabling us to provide the very best service and reliability for our shared customers.”

In September, Delta and LATAM announced a strategic partnership, including the now completed 20 percent equity investment and also a commercial joint venture. Once fully implemented, this partnership will unlock growth opportunities for both airlines and offer significantly expanded travel options for customers, with access to 435 destinations worldwide.

Most recently, the carriers announced that they will initially launch codesharing for flights operated by certain LATAM affiliates in Colombia, Ecuador and Peru beginning in the first quarter of 2020. The codeshare will offer customers increased connectivity between up to 74 onward destinations in the United States and up to 51 onward destinations in South America.

The enhanced cooperation and codeshare agreements are subject to governmental and regulatory approvals.

Genesee & Wyoming Announces Completion of Sale to Brookfield Infrastructure and GIC

December 30, 2019 / WIL BALDWIN

Genesee & Wyoming Inc. (G&W) today announced the completion of its previously announced sale to affiliates of Brookfield Infrastructure and GIC.

Under the terms of the sale, each issued and outstanding share of G&W common stock converted into the right to receive $112 in cash. As a result of the completion of the sale, G&W’s common stock ceased trading on the NYSE prior to market open today and will no longer be listed for trading on the NYSE.

“This transaction is an excellent outcome for all G&W stakeholders,” said Jack Hellmann, Chief Executive Officer of G&W. “For our customers, employees, and Class I partners, the long-term investment horizon of Brookfield and GIC is perfectly aligned with the long lives of G&W railroad assets. We look forward to building on G&W’s track record of safety, service excellence and commercial growth as we become an important component of a portfolio of global infrastructure assets.”

About Genesee & Wyoming

G&W owns or leases 119 freight railroads organized in locally managed operating regions with 8,000 employees serving 3,000 customers.

G&W’s six North American regions serve 42 U.S. states and four Canadian provinces and include 113 short line and regional freight railroads with more than 13,000 track-miles.
G&W’s Australia Region serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
G&W’s UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair. For more information, please visit www.gwrr.com.

About Brookfield Infrastructure

Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and data infrastructure sectors across North and South America, Asia Pacific and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Brookfield Infrastructure Partners is listed on the New York and Toronto stock exchanges. Further information is available at www.brookfieldinfrastructure.com.

Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with over $500 billion of assets under management. For more information, go to www.brookfield.com.

About GIC

GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves. As a disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. In infrastructure, GIC’s primary strategy is to invest directly in operating assets with a high degree of cash flow visibility and which provide a hedge against inflation. GIC has investments in over 40 countries. Headquartered in Singapore, GIC employs over 1,500 people across 10 offices in key financial cities worldwide. For more information on GIC, please visit www.gic.com.sg.

Wizz Air Partners With Sabre to Leverage Intelligent Planning

December 4, 2019 / WIL BALDWIN

LONDON and SOUTHLAKE, Texas, Dec. 4, 2019 /PRNewswire/ — Wizz Air (PNK: WZZAF) Europe’s greenest airline and leading low cost carrier in Central Eastern Europe, has selected Sabre Corporation (NASDAQ: SABR), the leading technology provider to the global travel industry, as a strategic partner to enhance its network planning and scheduling technology. With this new agreement, Wizz Air joins a portfolio of more than 80 airlines that have implemented Sabre’s leading technology to optimize complex schedule and slot management processes.

Sabre has a strong reputation in driving results through its intelligent planning and scheduling solutions. Empowering collaborative and intelligent decision-making, Sabre AirVision Schedule Manager helps airlines build and deliver robust, accurate and operationally feasible schedules across their networks. This proven solution has helped airlines achieve up to 9% incremental operating profit and up to 12% increase in productivity.

Wizz Air has implemented Sabre AirVision Slot Manager and Schedule Manager, equipping it with the right mechanisms to reduce the risks of losing valuable historic slot rights, while enabling increased productivity and a fast response to rescheduling.

“Adopting the right planning and scheduling technology has a significant impact on revenue optimization and cost reduction, as well as running a robust and efficient operation,” said George Michalopoulos, chief commercial officer at Wizz Air. “Sabre’s end-to-end planning and scheduling suite provides Wizz Air with the intelligence and flexibility needed to deploy optimized schedules.”

Sabre’s agreement with Wizz Air reflects its ongoing investment in creating technology solutions that are perfectly adapted to the requirements of different airline business models. With a customer community that includes a portfolio of airlines in the network, low-cost and ultra-low-cost categories, Sabre is consistently driving innovation through its partnerships.

“Wizz Air has a solid and ambitious plan for profitable expansion, and therefore needed a strong technology partner,” said Alessandro Ciancimino, vice president sales Europe, Travel Solutions, Sabre. “Sabre’s suite of technology helps airlines to get schedules to market faster, rapidly respond to market conditions in real time, and more efficiently manage a growing network of routes – which will help it position itself competitively, and differentiate itself among increased competition.”

About Sabre Corporation
Sabre Corporation is the leading technology provider to the global travel industry. Sabre’s software, data, mobile and distribution solutions are used by hundreds of airlines and thousands of hotel properties to manage critical operations, including passenger and guest reservations, revenue management, flight, network and crew management. Sabre also operates a leading global travel marketplace, which processes more than US$120 billion of global travel spend annually by connecting travel buyers and suppliers. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world.

About Wizz Air
Wizz Air, the largest low-cost airline in Central and Eastern Europe, offers more than 700 routes from 25 bases, connecting 152 destinations across 44 countries. A team of more than 5,000 aviation professionals delivers superior service and very low fares making Wizz Air the preferred choice of 38 million passengers in the past 12 months. WIZZ operates an all-Airbus fleet of 120 aircraft. Its A320s are equipped with 180 seats, its A321s with 230 seats and its A321neo aircraft with 239 seats. According to the latest data of the Swiss airline intelligence provider CH-Aviation, Wizz Air has one of the youngest airline fleets in the world.

Warburg Pincus Sells Airline Services Firm Accelya to Vista

November 18, 2019 / WIL BALDWIN

LONDON (Reuters) – U.S. buyout fund Warburg Pincus said on Monday that it had clinched a deal to sell its European airline services firm Accelya to rival private equity fund Vista Equity Partners for an undisclosed amount.

The deal, which was first reported by Reuters, allows Warburg Pincus to fully cash out after backing the Barcelona-based company for the past two years.

The U.S. investment firm launched an auction process during the summer to find a new owner for the business which serves more than 200 airlines including British Airways, Lufthansa and EasyJet.

Warburg Pincus bought Accelya from French private equity firm Chequers Capital in 2017 and quickly tripled its revenues by merging it with Mercator, a Dubai-based travel services group in which the U.S. buyout firm had been an investor since 2014.

Vista Partners, whose portfolio is mostly focused on software companies, was recently vying to buy a majority stake in WPP’s (WPP) data analytics firm Kantar but lost it to Bain Capital.

Its Chief Executive Robert Smith said Accelya was “at the forefront of innovation and positioned to shape the airline and travel industry for decades to come.”

Accelya employs 2,500 employees across 24 offices in 14 countries and recently signed a long-term deal as the International Air Transport Association’s (IATA) technology partner.

Bank of America (B AC) and Evercore advised Warburg Pincus on the deal while Vista hired Goldman Sachs (GS) and Houlihan Lokey to work on the purchase.

Law firm Kirkland & Ellis and Simpson Thacher served as the legal advisors to Warburg Pincus and Vista, respectively.

Reporting by Pamela Barbaglia; Editing by Susan Fenton

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