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Czech Republic Signs Letter of Offer and Acceptance for Mixed Fleet of AH-1Z and UH-1Y

  • Czech Republic becomes first international customer to purchase mixed fleet of H-1 aircraft

WASHINGTON D.C. (Dec. 13, 2019) – The U.S. Secretary of Defense, Mark Esper, and Czech Republic Minister of Defence, Lubomir Metnar, signed a Letter of Offer and Acceptance finalizing the foreign military sale by Bell Textron Inc., a Textron Inc. (TXT) company, of H-1 helicopters to the Czech Air Force.

“We are privileged to support the Czech people and applaud the Ministry of Defence and Armed Forces of the Czech Republic for selecting AH-1Z and UH-1Y helicopters.” said Vince Tobin, Executive Vice President of Bell’s Military Business.

The H-1 mixed fleet shares 85-percent commonality between parts, reducing the logistics, maintenance, and training costs of the AH-1Z and UY-1Y helicopters while offering a lethal combination of integrated weapons systems to counter ground, air, and maritime targets effectively. The AH-1Z is the only helicopter in production equipped with the AIM-9 Sidewinder providing the most advanced air-to-air combat capabilities.

“This mix allows the Czech Republic to accomplish a diverse mission set, from humanitarian assistance and disaster relief to close air support and air-to-air warfare,” said Joel Best, Director of Military Sales and Strategy, Europe. “The advanced capabilities of the H-1 program help ensure the safety and security of Czech sons and daughters for years to come.” 

The purchase of four AH-1Z and eight UH-1Y military helicopters represents the first foreign military sale of a mixed H-1 fleet. Bell anticipates the delivery of the first H-1 aircraft to the Czech Republic will begin in 2023 and complete delivery by 2024.

Congo Airways Signs Order with Embraer for Two E175 Jets

Kinshasa, Democratic Republic of the Congo, December 10th, 2019 – Embraer and Congo Airways have signed a firm order for two E175 aircraft, with purchase rights for a further two. The deal has a total value of USD 194.4 million at current list prices with all purchase rights exercised, and will be added to Embraer’s 2019 fourth quarter backlog.

Desire Bantu, CEO of Congo Airways said, “These new jets will replace our current turboprop offering and allow us to serve routes both within the Democratic Republic of Congo, and regionally to West, Central, and Southern Africa, from our hub in Kinshasa. We will now have the flexibility and the right sized aircraft to serve our market, which is growing so rapidly an additional order may be required, for which the E2 is a particularly compelling option.”

Raul Villaron, Vice President Sales, Africa and Middle East, Embraer Commercial Aviation, said, “It’s great to welcome another airline to the Embraer family of operators, especially in Africa where the demand for regional travel is growing strongly. We look forward to supporting Congo Airways as they continue to upgrade their offering to their customers.”

The aircraft will be configured in a dual class layout seating 76 passengers in total, with 12 in business class. Deliveries will begin in the fourth quarter of 2020.

Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers across the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleets of 80 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline network carriers.

MD Helicopters Announces Advanced Weapons and Mission Management System for Scout Attack Helicopter

MD Helicopters, Inc. announces a strategic teaming agreement with Elbit Systems Ltd (ESL) to deliver next-generation weapons and mission management capabilities to its MD 530G Block II (BII) Scout Attack Helicopter. The proven, pilot-centric Integrated Weapons System (IWS) is comprised of a Helmet Display and Tracking System (HDTS), Weapons Management System (WMS) and Mission Management System (MMS).

“Design and disruption are the cornerstone of all product development efforts,” said Lynn Tilton, Chief Executive Officer for MD Helicopters, Inc. “This partnership with Elbit Systems, Ltd. will allow us to rapidly expand the capabilities of the MD 530G, resulting in a next-generation, advanced light scout attack helicopter solution that will set a new standard in this highly competitive class.”

In line with MD Helicopters’ commitment to delivering excellence and innovation in design, the integrated, advanced avionics suite utilizes an intuitive Human Machine Interface (HMI), multi-functional smart displays and next-generation applications to deliver a fully compatible multi-mission cockpit that reduces pilot workload, increases efficiency of crew operations, and delivers increased lethality for a range of operational parameters.

Helmet Display & Tracking System (HDTS)

The HDTS configuration supports both daytime and nighttime operation, allowing the pilot to intuitively maneuver the aircraft into attack positions and engage targets heads-up and eyes out.

Weapons Management System (WMS)

The advanced digital WMS will allow the MD 530G BII Scout Attack Helicopter to support a comprehensive array of suppressive firepower options as well as unguided and guided munitions, including Hellfire Missile and, with authorized customer demand, APKWS. Standard configuration includes support for M260 Rocket Pods, HMP 400 Digital Gun Pods, RMP Digital Gun/Rocket Pods, and the M134D-H Mini-Guns. Critical weapons management functions, such as weapon activation and HDTS operation, will be integrated into the cyclic grip and collective for both pilots.

Mission Management System (MMS)

The main component in the MD 530G BII Scout Attack Helicopter MMS is the Digital Mapping application (DMAP) managed by a touch screen graphical user interface (GUI). This moving map display will give pilots greater situational awareness with aircraft positions, known threats, and friendly locations plotted. The aircraft’s EO/IR solution will integrate directly with the new MMS to enable detect and store intelligence. Detect and store intelligence ensures that once a target has been acquired, the crew can choose to attack with guided weapons from a distance, or unguided munitions using the ballistics Continuously Calculated Impact Point (CCIP) displayed over the HDTS.   

The enhanced Integrated Weapons System, certified and in use on fixed and rotary wing medium and heavy attack platforms already in service with U.S. and Allied forces around the world, will deliver greater mission flexibility and improved operational performance, making the already multi-mission-capable MD 530G perfectly suited for Close Support operations including attack, forward air control, armed reconnaissance, counter-insurgency, and observation.

“These are exciting times at MDHI,” said Stephen Suttles, Vice President of Commercial and Military Sales and Marketing for MD Helicopters, Inc. “Competition is a good thing in our business. We believe that the limited market penetration by others in this space is an incredible advantage for us, and we are confident in our ability to deliver equitable precision capabilities backed by an unmatched history of safety and survivability sooner than our competitors, and at a much better price point.”

“A proven and iconic light scout attack helicopter platform, the addition of this elegant, technically superior solution elevates the MD 530G BII to best-in-class status,” Tilton concludes.  “My team has delivered industry-leading rotorcraft solutions for decades. Now partnered with the Elbit Systems team, we are poised to bring a new level of customizable, operator-focused solutions to U.S. and Partner Nation aviation forces.”

 MD Helicopters anticipates live fire events with a production-quality test asset in 2020.

Brazil Association Takes Fight Against Embraer-Boeing Deal to Europe

BRUSSELS, Dec 5 (Reuters) – An association representing minority investors in Brazil is lobbying European antitrust regulators to spike a deal between planemakers Embraer SA and Boeing Co, calling it a killer acquisition.

Aurelio Valporto, the head of minority investor association Abradin, said the European Commission should block Boeing’s proposed $4.2 billion purchase of 80% Embraer’s commercial passenger jet division or demand hefty concessions.

“What will be left from Embraer won’t survive, and even if it was possible to survive, Embraer wouldn’t be able to produce any aircraft with 50 passengers or more,” Valporto said in an interview late on Wednesday, arguing that Embraer and Boeing planes compete in the marketplace.

Embraer’s commercial jet division focuses on the 70 to 150-seat segment, competing directly with the CSeries jets designed by Bombardier Inc, a division that was bought by Europe’s Airbus SE.

Boeing aims to take control of Embraer’s commercial jet business, its most profitable, to compete directly with Airbus in the market for planes with fewer than 150 seats.

Embraer said in a statement on Thursday that the deal will “serve the interests of shareholders by enabling Embraer to expand markets and increase sales.” The deal was backed by around 97% of Embraer’s shareholders earlier this year.

Valporto complained about the deal to the European Commission two months ago, saying it hurt competition in the Brazilian aerospace industry, and on Wednesday took his grievance to antitrust officials in Brasilia.

The deal has already been approved by regulators in the United States, China and Japan. If it closes, Embraer will receive dividends from its remaining 20% stake in the commercial jet business, but will have to rely more heavily on its business jets and defense divisions to turn a profit. Those two divisions have posted losses in recent quarters.

The European Commission, which launched a full-scale investigation into the deal in October, declined to comment.

Boeing said it and Embraer had been engaged with the European Commission and other global regulatory authorities since late last year.

“We continue to co-operate with the European Commission and CADE as they assess our transaction and look forward to a positive resolution,” a spokesman for the company said.

The EU has voiced concerns the deal would remove Embraer, the world’s third-largest commercial aircraft maker, from the industry, an indication that it may demand significant concessions from Boeing.

The EU regulator halted its investigation last month while waiting for Boeing to submit data on the deal.

(Reporting by Foo Yun Chee in Brussels Additional reporting by Marcelo Rochabrun in Sao Paulo Editing by Kirsten Donovan and Matthew Lewis)

Delta, LATAM to Launch Codesharing as Carriers Build Leading Partnership in Latin America

  • Important step begins to deliver benefits to customers with expanded connectivity to up to 51 destinations in South America.

Delta and LATAM will launch codesharing for flights operated by certain LATAM affiliates in Colombia, Ecuador and Peru beginning in the first quarter of 2020, pending receipt of applicable government approvals. 

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.

Delta expects to expand codeshare opportunities to include more destinations in the near future. The airlines are also working toward introducing frequent flyer program reciprocity and reciprocal lounge access.

“This is an important milestone for customers as we begin to deliver on the transformative partnership between Delta and LATAM announced earlier this year,” said Steve Sear, Delta President – International and Executive Vice President – Global Sales. “Once fully realized, this partnership will give us the ability to offer our shared customers an industry-leading network and superior service across the Americas.”

In September, Delta and LATAM announced an agreement that would bring together the leading airlines in North and South America, which once fully implemented will offer significantly expanded travel options for customers with access to 435 destinations worldwide. The enhanced cooperation is subject to governmental and regulatory approvals.

Daimler to Ax at Least 10,000 Jobs in Latest Car Industry Cuts

FRANKFURT (Reuters) – Daimler said on Friday it will cut at least 10,000 jobs worldwide over the next three years, following others in the industry as they cut costs to invest in electric vehicles while grappling with weakening sales.

It marks the third announcement on cost cuts this week by a major German car company as automakers seek to fund huge investments into cleaner and self-driving technologies while demand in China, their biggest market, is falling and a trade war between Washington and Beijing is curbing economic growth.

“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said in a statement.

Daimler, the owner of Mercedes-Benz, revealed the 3% cut in its workforce after reaching an agreement on its plans with labor unions.

They have agreed on a variety of measures to cut costs and jobs, including expanding part-time retirement and a severance program to be offered in Germany. The company is also cutting 10% of worldwide management positions.

Staff reductions would be in the low five-digits, or at least 10,000 people, according to Wilfried Porth, a board member in charge of human resources. The company employed 304,680 staff at the end of the third quarter.

Plans laid out by Daimler in November showed the company aimed to cut staff costs by around 1.4 billion euros ($1.54 billion) by the end of 2022.

The announcement comes days after Volkswagen’s <VOWG_p.DE> luxury car unit Audi said it would cut up to 9,500 jobs or one in ten staff by 2025, freeing up billions of euros to fund its shift toward electric vehicle production.

Also this week, BMW said that its management and labor had reached an agreement on measures to reduce bonus and other pay schemes for staff to cut costs.

Car suppliers Continental and Osram have also announced staff and cost cuts.

Daimler has repeatedly cut its profit outlook over recent months, partly to cover a regulatory crackdown on diesel emissions but also because of a slowing auto market.

Group operating profit will be “significantly lower” than a year ago, the company said last month.

Other measures to reduce staffing costs include offering shorter working weeks.

Agreements in place to prevent forced redundancies in Germany until 2029 will remain in place, Daimler said.

The workforce needs a clear strategy for the future, said Michael Brecht, chairman of Daimler’s works council. “A reduction in capacity must not be carried out on the backs of the employees,” he said.

(Editing by Elaine Hardcastle)

The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin

Jet Industry’s Grand Masters Fight to a Draw in Dubai

Boeing 787 Dreamliner performs air display during the second day of Dubai Air Show in Dubai

DUBAI (Reuters) – After insisting for 15 years that the superjumbo is the future, Emirates airline has been forced by the demise of the A380 to embrace smaller wide-body jets, resulting in a flurry of maneuvers between planemakers at this week’s Dubai Airshow.

The 555-seat A380 is near the end of production, setting off a series of interlocking deals as top buyer Emirates reviews its fleet against the backdrop of fragmenting travel demand. Delays in the 406-seat Boeing 777X also weighed in the shake-up.

“We have to face the reality of the cancellation of the (A380) program and the effect it has on our network, which is why we conducted a root and branch (review),” Emirates President Tim Clark told reporters at the airshow.

The double-decker A380 superjumbo and the big twin-engined Boeing 777, plus mid-sized 787s and A350s, were all spread out in front of VIP chalets – the queens, bishops and knights in a game of industry chess being played out across the globe.

Big jets tend to be profitable especially when full.

Periodically, the industry designs smaller planes that match both the range and efficiency of larger ones, allowing smaller pieces on the industry chess board to topple larger ones.

While reducing its remaining orders for A380s, Emirates placed an expanded order at the show for 50 Airbus A350s but shelved earlier plans to order the 330-seat A330neo, an upgrade of an earlier model.

It substituted part of an order for delayed 777X jets for 30 Boeing 787-9 Dreamliners – 10 fewer than originally planned in a tentative 2017 order – as part of a $25 billion order shake-up.

For passengers, the roughly 300-seat, lightweight mid-sized jets offer more choice and frequencies.

Many airlines say they can fly almost as profitably as the larger models but with less risk to the bottom line.

The downside? Planes fill more quickly and passengers can flee to other carriers. Airport congestion is also a concern.

Emirates insists the superhub model it pioneered – which takes advantage of Dubai’s location to capture global traffic using large aircraft – remains intact despite the new twist.

But the smaller planes allow some of its rivals to fly profitably with fewer commercial risks and this week’s deals imply Emirates no longer feels immune from such pressure.

“Given the changed environment, Emirates has been forced to adapt the tactics of some of the carriers they have been competing with,” said analyst Richard Aboulafia of Teal Group.

STALEMATE

The shift sparked frantic talks by planemakers to ensure their models were included in the new mix of Emirates’ mid-sized jets. Each suffered losses but the result was broadly a stalemate, analysts said.

Airbus suffered a setback with the loss of the A330neo at Emirates and may have to cut output, they said.

But it ensured its own A350 picked up the slack and won a ticket to any future contests to replace A380s still in service.

Boeing <BA.N> cemented a key win for the 787 after two years of uncertainty over the earlier provisional deal. But recent 777X delays opened the door to Emirates readjusting the blend in favor of the Airbus A350, at the expense of the 787.

Emirates’ decision to expand its A350 order coincided with cancellations for the same jet at Abu Dhabi’s struggling Etihad, prompting speculation of a politically balanced adjustment.

Airline officials strongly denied any link and Clark said planners had identified more room for future growth in revenues with the A350 than the A330neo, which would nonetheless remain “in the mix” for the future alongside more 777X purchases.

Analysts said the net result of reducing A380 and 777X orders and switching to smaller models was about 18,000 fewer seats on order than previously planned before the show,

which some analysts described as a response to overcapacity.

“Manufacturers have sold too many airplanes,” Adam Pilarski, senior vice-president at consultancy AVITAS, said.

While the spotlight fell on the Emirates wide-body order rejig, the Dubai show highlighted Boeing’s efforts to shore up confidence in its grounded 737 MAX with fresh sales and changes sweeping the narrow-body markets. Beefed-up single-aisle jets increasingly cover distances reserved for wide-bodies.

Sharjah’s Air Arabia <AIRA.DU> ordered 120 Airbus including 20 of the long-range 200-240-seat A321XLR. Sources say it may leapfrog northern Africa to fly non-stop as far as Casablanca, a mission currently served from neighboring Dubai by an Emirates A380.

“The single aisles are the pawns of the industry but very effective ones,” Rob Morris, head consultant at UK-based Ascend by Cirium, said.

(By Tim Hepher and Alexander Cornwell; Additional reporting by Ankit Ajmera; Editing by Susan Fenton)

Emiratis walk past an airbus A350 displayed at the Dubai Airshow on November 8, 2015. Dubai Airshow took off today to a slow start amid little expectations of major orders to match the multi-billion-dollar sales generated at the last edition of the biennial fair. AFP PHOTO/MARWAN NAAMANI (Photo by MARWAN NAAMANI / AFP)

Boeing, Air Astana Announce Intent To Buy 30 737 MAX Airplanes

  • Flag carrier of Kazakhstan intends to order the 737 MAX for its new low-cost airline FlyArystan

DUBAI, United Arab Emirates, Nov. 19, 2019 /PRNewswire/ — Air Astana intends to order 30 Boeing 737 MAX 8 airplanes to serve as the backbone of its new low-cost airline FlyArystan, the Kazakh flag carrier and Boeing announced at the Dubai Airshow. The companies today signed a letter of intent for the 30 airplanes with a list price value of $3.6 billion.

Since beginning operations in May 2002, Air Astana has steadily grown its business from its hubs in Almaty and Nur-Sultan (formerly Astana), sprouting a network that serves major cities across Kazakhstan, Central Asia, Asia, China, Europe and Russia. It operates a growing fleet that includes the Boeing 757, 767 and the Airbus A320 family.

In May, Air Astana launched FlyArystan to better compete in the growing low-cost segment. The company says the new airline has seen strong ticket sales in just the first few months of operation. The plan is to expand the fast growing domestic network, with international services to Moscow commencing next month.

“Since its launch in May this year, FlyArystan has exceeded all expectations and it is clear that low cost air travel has a great future in Kazakhstan and Central Asia,” said Peter Foster, President and CEO of Air Astana. “Air Astana has had a strong relationship with Boeing ever since the airline started flying in 2002 with a pair of 737NGs. Today we operate both 757s and 767s and we believe that the MAX will provide a solid platform for the growth of FlyArystan throughout our region, once the aircraft has successfully returned to service”.

“Air Astana has become one of the leading airlines in Central Asia with its deep focus on safety, reliability, efficiency and customer service. At Boeing, we share those same values and are honored to expand our partnership with the 737 MAX,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. “We believe the efficiency and reliability built into the 737 MAX will be a great fit for FlyArystan. We look forward to working with Peter and his team finalize an agreement that meets their fleet and operational requirements.”

The 737 MAX 8 is part of a family of airplanes that offer 130 to 230 seats and the ability to fly up to 3,850 nautical miles (7,130 kilometers). With improvements such as the CFM International LEAP-1B engine and Advanced Technology winglets, the 737 MAX provides operators a 14% improvement over today’s most efficient single-aisle airplanes and extended range to open up new destinations.

3D imagery, 737 MAX, MAX, 737 MAX 7, 737 MAX8, 737 MAX 9

EgyptAir Adds More Boeing 787s to Fleet as Dreamliners Deliver 23% Fuel Boost

  • Egyptian flag carrier to lease two more 787-9 jets from leading lessor AerCap
  • Airline joins other operators in growing their Dreamliner fleet after achieving eye-opening fuel efficiency improvement

EGYPTAIR is growing its Boeing 787 Dreamliner fleet with an agreement to lease two more airplanes from AerCap, the airline announced today at the Dubai Airshow. The Egyptian flag carrier unveiled it had selected the super-efficient airplane to modernize its fleet during the last Dubai Airshow in 2017.

The carrier began operating the 787-9 this year, deploying the Dreamliner on new direct flights from its hub in Cairo to Washington, D.C., and other cities. EGYPTAIR says the 787s have delivered on the Dreamliner’s promise of unmatched efficiency, providing a 23-percent reduction in fuel consumption compared to the airplanes they replaced.

“The Boeing 787 Dreamliner has outperformed our expectations, helping us significantly reduce our fuel use and emissions, while bringing comfort to our passengers,” said Ahmed Adel, chairman and CEO of EGYPTAIR Holding Company. “We look forward to growing our network with additional 787-9 airplanes and flying more passengers to their destinations at an affordable cost.”

To maintain its fleet of 787’s, the carrier also announced agreements with Boeing this week that would provide EGYPTAIR with global access to critical aircraft components, including a Landing Gear Exchange and Quick Engine Change kit solutions.

EGYPTAIR joins other 787 operators in expanding its commitment to the Dreamliner program after experiencing the airplane in revenue service. More than half of all 787 customers have placed repeat orders for the airplane, helping the Dreamliner become the fastest-selling widebody airplane in history. The biggest 787 customer is Dublin-based AerCap with 117 airplanes owned and on order. AerCap will lease a total of eight 787’s to EGYPTAIR.

Speaking at the Dubai Airshow, AerCap CEO Aengus Kelly said, “AerCap is very proud to continue to support EGYPTAIR’s widebody fleet renewal program and sustainable growth ambitions. We thank our friends and partners at EGYPTAIR for their continued confidence in AerCap and we look forward to working with the EGYPTAIR and Boeing teams as these aircraft deliver.”

 “EGYPTAIR has shown a strong commitment to growing its business in a sustainable and profitable manner and we are thrilled that the 787 Dreamliner is helping the airline realize their vision. There is no better endorsement of the 787’s efficiency, range and passenger comfort than an operator returning for more aircraft,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing, The Boeing Company. “Of course, this would not be possible without AerCap and its market-leading portfolio that gives carriers great flexibility in operating an optimized fleet.”

At 63 meters (206 feet) long, the 787-9 can fly 296 passengers, in a typical two-class configuration, up to 7,530 nautical miles (13,950 kilometers). The airplane is 6 meters longer than the original Dreamliner and is capable of carrying 48 more passengers with increased range. The 787 Dreamliner family has won more than 1450 orders from over 80 customers on six continents.

Boeing Delivers First P-8A Poseidon to United Kingdom’s Royal Air Force

SEATTLE, Nov. 8, 2019 – Boeing [NYSE: BA] last week delivered the first of nine P-8A Poseidon maritime patrol aircraft (MPA) to the United Kingdom Royal Air Force (RAF). The United Kingdom is acquiring the multi-mission aircraft through the Foreign Military Sales process with the U.S. Navy. The P-8A Poseidon replaces the U.K.’s retired Nimrod aircraft.

Speaking to attendees at the delivery ceremony, Air Marshal Andrew Turner, deputy commander for Capability for the Royal Air Force, spoke of the “profound challenge” of enemy submarines threatening the U.K. and other nations. “P-8 is the key to solving this challenge on the surface, the sub-surface and in the waters of the North Atlantic. There is no place [for our enemies] to hide. We will make the oceans transparent and we will prevail.”

Boeing formally delivered the aircraft on Oct. 29 to the U.S. Navy during a ceremony at the Boeing Military Delivery Center in Tukwila, Wash. From Tukwila, the aircraft flew to the U.S. Navy’s Naval Air Station Jacksonville, Florida, where U.S. Navy leaders officially turn the aircraft over to the United Kingdom. At JAX, Royal Air Force crew will work with the aircraft before flying it to the United Kingdom in January 2020. All nine P-8A aircraft will be based at Lossiemouth, Scotland.

As part of a collaborative program with the U.S. Navy, pilots and maintainers from the United Kingdom’s RAF have been stationed at Naval Air Station JAX since 2012. Called “Project Seedcorn,” the arrangement has allowed RAF members to fly the P-8A with Patrol Squadron Thirty (VP-30), the Navy’s Maritime Patrol and Reconnaissance Fleet Replacement Squadron, to maintain their maritime patrol skills in advance of receiving the P-8A.

The P-8 is a long-range anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft capable of broad-area, maritime and littoral operations. In addition, the P-8 performs humanitarian and search and rescue missions around the globe.

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