(Reuters) – Air Canada said on Tuesday it would delay the launch of certain seasonal flights this spring, as the carrier wrestles with the challenge of servicing routes previously flown by its grounded Boeing 737 MAX aircraft.
Canada’s largest carrier said it would put off the launch of at least five seasonal routes, including delaying its Vancouver to Boston service to June 16 from June 1.
Montreal-based Air Canada said a previously-announced halting of flights from two Eastern Canadian cities to London’s Heathrow airport would now remain suspended until May 31.
Air Canada, which previously suspended its 2019 financial forecasts, has removed 24 MAX jets from its flight schedule until July 1, following grounding of the Boeing jets after two recent crashes involving the model.
The global grounding, following the crash of an Ethiopian Airlines flight in March, has left U.S. and Canadian airlines with the logistical challenge of replacing the popular roughly 175-seat MAX on certain routes, at a time of rising passenger demand.
The Canadian carrier has been flying alternative planes or consolidating flights into larger jets that were previous flown more frequently on smaller aircraft.
Air Canada has also said it is speeding up the integration of four Airbus A321 aircraft it acquired in late December from Iceland’s cash-strapped WOW air.
Air Canada is “accommodating as best as they can,” said AltaCorp analyst Chris Murray. “At the same time, there is still some uncertainty about when the MAX grounding notice is going to be lifted.”
On Monday, Boeing said it planned to submit a proposed software enhancement package for the grounded 737 MAX in “the coming weeks” after the company had previously said it planned to deliver the fix for government approval by last week.
Anglo-German tour operator TUI said last week that its profit would fall by at least 200 million euros ($223.96 million) this year due to the cost of substituting for the MAX planes, along with loss of business and lower fuel efficiency from the replacement aircraft.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli and Bill Berkrot)
HANOI (Reuters) – Vietnamese carrier Bamboo Airways has signed a firm
deal to buy 50 Airbus A321Neo planes, its chairman Trinh Van Quyet said
on Thursday.
The first of the planes will be delivered in 2022, Quyet told Reuters.
He said Bamboo Airways will conduct its first international flights late next month, to Japan, Singapore and South Korea.
(Reporting by Khanh Vu; editing by David Evans)
FILE PHOTO: An Airbus A321 aircraft of Bamboo Airways taxis at Noi Bai airport in Hanoi, Vietnam January 16, 2019. REUTERS/Kham
ANA becomes Japan’s first carrier with Airbus’ double-deck jetliner and joins airlines that use A380s to serve the Tokyo Narita – Honolulu route
Japan’s All
Nippon Airways (ANA) today took delivery of its initial A380, which will
serve the popular Japan-to-Hawaii routing – and is appropriately
painted in a special livery depicting the Hawaiian Green Sea Turtle,
also known as the Honu.
ANA becomes the world’s 15th operator – and Japan’s first – of this widebody passenger aircraft. It has ordered a total of three A380s.
Powered by Rolls-Royce Trent 900 engines, the jetliner features ANA’s very latest in-flight entertainment systems, as well as full connectivity in all classes. It will enable the airline to almost double the capacity between Japan and the U.S. island state of Hawaii, generating value for the airline.
As the world’s largest and most spacious passenger aircraft, the A380 will be operated on ANA’s popular Japan-to-Hawaii route.
“This marks a new milestone in our relationship
with ANA – our longest-standing customer in Japan,” said Tom Enders,
Airbus Chief Executive Officer, during today’s delivery ceremony at
Toulouse, France. “We are confident the A380 will be a huge success in
service with All Nippon Airways, and we remain committed to supporting
the airline’s A380 operation – as we will for all operators of this
magnificent aircraft.”
Each of ANA’s A380s will feature the special livery depicting the
Hawaiian Green Sea Turtle. The no. 1 aircraft is blue, the second will
be green and the third orange. This elaborate paint scheme covers a
surface of 3,600 square metres and took the Airbus team 21 days to
paint, using 16 different shades of colour.
With this character design of
Honu, All Nippon Airways aims to raise awareness about environmental
issues and contribute to saving sea turtles and the environment.
Shohei Hattori, ANA Corporate Planning Manager
“Customers around the world were asked to create
an attractive design to be painted on Japan’s first A380 as part of a
contest – and the Honu, a symbol of good luck and prosperity in Hawaii,
was among the numerous ideas,” explained Shohei Hattori, the ANA
Corporate Planning Manager.
Airbus’ longstanding relationship with Japan
The relationship between Airbus and Japan’s All
Nippon Airways began in 1986, when the airline placed its first order
for 20 single-aisle A320s, the first of which entered service in 1991. Since then, ANA has operated a fleet of A320 Family
aircraft, consistently ranking among the top Airbus operators for
technical performance and achieving more than 99.5% operational
reliability with its latest A321neo fleet.
In recent years, Airbus also extended its operator base in Japan with
ANA subsidiaries Peach Aviation and Vanilla Air, both of which
exclusively fly Airbus A320 Family aircraft.
At the end of 2018, Airbus reached a milestone with 100 of its aircraft in Japanese operators’ service, representing 20% of total fleet flying in the country – with a target to reach 30% by 2020, and 50% in the long term.
As the first Japanese
customer for Airbus’ double-deck jetliner, ANA’s no. 1 A380 bears the
representation of a Hawaiian turtle – and will be part of promotions to
save sea turtles and the environment.
The unique A380 experience
More than 230 A380s have been delivered to 15
airlines worldwide, with the jetliners operated on 120-plus routes and
60 destinations.
An estimated250 million passengers already have flown aboard
the double-deck aircraft – and people actively seek out A380 flights for
the unique travel experience. To assist passengers, Airbus created a
dedicated iflyA380 website, where travellers can search and book their preferred flights – which now also include those operated by ANA.
Some 50% of weekly global A380 flights take place in Asia-Pacific –
with flights performed within the region, to or from it, demonstrating
that the jetliner offers the best solution for traffic growth in Asia.
As the world’s largest and most spacious passenger aircraft, the A380 is a favourite among travellers, with unmatched comfort and wider seats. For airlines, the jetliner has the lowest cost per seat of any competing widebody, delivering comfort and economic benefits and maximising revenue. With passenger traffic doubling every 15 years, the A380 is the solution to transportation growth and airport congestion, carrying more people with fewer flights at lower cost and reduced emissions.
As the first Japanese customer for Airbus’ double-deck jetliner, ANA’s no. 1 A380 bears the representation of a Hawaiian turtle – and will be part of promotions to save sea turtles and the environment.
(Reuters) – Boeing Co is indicating “full speed ahead” for a new midsized airplane in what would be the first all-new jet program for the world’s biggest planemaker in more than a decade, Air Lease Corp’s chief executive, John Plueger, said on Wednesday.
Boeing reiterated on Wednesday that it will make a decision in 2020 on whether to launch the plane, which aims to address the middle of the jet market between traditional narrowbody jets with one aisle and long-distance widebody planes. It can start seeking offers in 2019, subject to launch.
“Boeing is signalling full speed ahead but there’s still a lot to be decided in these programs,” Plueger said at a conference, noting the company had met with Boeing in Seattle on Friday.
In an emailed statement, Boeing said it is still working through the business case for the new jet, adding: “If we decide to offer the airplane and the market responds positively, we will proceed with a launch decision sometime in 2020.”
Air Lease, one of the largest aircraft lessors, said it sees interest in Boeing’s proposed mid-market aircraft from airlines, some of which are looking for longer range while others, such as Asian carriers, seek the lowest possible cost per seat kilometre.
Still, Boeing is taking a “thoughtful approach” to the potential project following a series of cost overruns and delays with its last jet program, the 787, and has yet to discuss possible pricing, Air Lease Executive Chairman Steven Udvar-Hazy said.
Air Lease will meet on Saturday with Airbus SE, which is preparing to counter the potential new jet by Boeing with a new version of its A321 and the larger A330neo.
While Boeing and Airbus have traditionally launched new jets alongside purchase commitments from airlines, interest by aircraft lessors like Air Lease is forming an increasingly important role in the decision-making process, industry sources have said.
Delta Air Lines Chief Executive Ed Bastian said on Monday that it is interested in a mid-market aircraft from Boeing to replace 200 757 and 767 aircraft over the next decade.
Last month, Rolls-Royce dropped out of the race to power Boeing’s planned jet, strengthening a leading position in the high-profile contest for a transatlantic venture involving General Electric Co and France’s Safran.
“Somebody had to drop out and the competition at this point is progressing normally,” Plueger said.
Pratt & Whitney is also a potential supplier for the new Boeing jet.
(Reporting by Tracy Rucinski in Chicago; Editing by Matthew Lewis)
Interest is rising for Boeing’s new 757 replacement jet!
BRUSSELS (Reuters) – Ryanair is in early discussions with Airbus about a potential future order for some 100 A321 aircraft for its recently acquired subsidiary Laudamotion, but for now the company is focusing on leased older aircraft, Chief Executive Michael O’Leary said on Wednesday.
The
Irish budget carrier is also interested in the latest Boeing
narrow-body model – the 737 MAX 10 – for its all-Boeing main fleet “at
the right price” but those conditions do not exist currently, O’Leary
told Reuters in an interview.
Any
future order of Airbus A321s for Austrian unit Laudamotion would most
likely “not include fewer than 100 aircraft” including 50 firm orders
and 50 options, O’Leary said on the sidelines of an airlines conference
in Brussels.
(Reporting by Tim Hepher; editing by Jason Neely)
FILE PHOTO: A Ryanair Boeing 737-800 plane taxis at Lisbon’s airport, Portugal September 27, 2018. REUTERS/Rafael Marchante
HONG KONG/SINGAPORE (Reuters) – Hong Kong flagship carrier Cathay Pacific Airways Ltd said on Tuesday it is in “active discussions” about an acquisition involving budget airline Hong Kong Express Airways Ltd, although an agreement has yet to be reached.
Such
a deal would give Cathay exposure to the growing budget-travel market
at a time when a lack of slots at Hong Kong International Airport has
constrained its ability to follow peers like Singapore Airlines Ltd and
Qantas Airways Ltd and set up its own budget brand.
The
Hong Kong carrier has instead shifted some destinations from its main
brand to its regional carrier, Cathay Dragon, as part of a
transformation plan designed to cut costs and increase revenue. It has
ordered 32 Airbus SE A321neos for Cathay Dragon.
Cathay
said it had decided to go public about the discussions in response to
media reports suggesting it may be in talks to acquire shares in Hong
Kong Express Airways Ltd and full-service sister carrier Hong Kong
Airlines Ltd from cash-strapped Chinese conglomerate HNA Group Co Ltd.
It
did not detail the potential value of the transaction, nor the size of
the stake it would hold. It said it would issue an additional statement
when appropriate.
An analyst last year estimated to Reuters that HK Express could be worth about $300 million.
HNA and HK Express did not immediately respond to a request for comment.
A
person with knowledge of the matter said the companies appeared close
to reaching an agreement and noted Cathay’s parent Swire Pacific Ltd had
historically taken majority stakes when making investments.
Cathay is not interested in Hong Kong Airlines because it has both similar routes and full-service positioning, the person said.
A
second person with knowledge of the matter said Cathay had signed an
exclusivity period for discussion but other parties remained interested
in HK Express if a deal could not be reached.
Both sources spoke on the condition of anonymity as discussions are confidential.
ANTITRUST
Given Cathay’s dominance of Hong Kong’s aviation market, a deal could attract scrutiny from the competition regulator.
Some
analysts have also expressed doubts about the likely benefits of any
deal. Daiwa analyst Kelvin Lau said he did not see much value from the
acquisition as the two airlines flew similar routes, but also because
Cathay would need to undertake significant reform to add a budget wing.
Jefferies analyst Andrew Lee however said in a note to clients it would be “positive for Cathay Pacific” as it would give the airline greater access to a different passenger segment in the low-cost market.
FLYING HIGH
News
of Cathay’s interest in HK Express comes just weeks after Hong Kong’s
flagship carrier projected its annual profit at more than double analyst
estimates, sending its shares surging nearly 9 percent.
Shares
of Cathay have risen more than 19 percent so far this year, compared
with an 8 percent fall in 2018. The airline’s shares jumped more than 3
percent on Tuesday morning.
Cathay has faced repeated questions from investors over the last few years about its failure to set up a budget carrier.
Chief
Executive Rupert Hogg has said it would be difficult to do so until a
third runway was completed at Hong Kong International Airport in 2024,
opening up more slots.
“Our
home-based airport is full at the moment, or largely full, and so it’s
not a perfect place to develop a model from scratch,” he told CAPA
Centre for Aviation last May.
HK
Express operates a fleet of 25 A320 family aircraft to regional
destinations around Asia, according to plane tracking website
FlightRadar24.
Embattled
HNA Group is more than a year into the process of unwinding a $50
billion acquisition spree that at its peak netted the company stakes in
banks, fund managers, hotels, property and airlines, among other assets.
(Reporting by Donny Kwok in Hong Kong and Jamie Freed in Singapore; Additional reporting by Kane Wu in Hong Kong; Editing by Anne Marie Roantree and Stephen Coates)
(Reuters)
– Delta Air Lines fueled the appetite of planemakers on Tuesday after
Chief Executive Ed Bastian said the airline planned to replace some 200
Boeing 757 and 767 aircraft over the next decade.
The plans come as the second largest U.S. airline seeks to grow internationally, though Bastian said at a conference that the company had not yet decided whether to invest in struggling Italian carrier Alitalia.
Atlanta-based Delta’s potential fleet order, which analysts say would be worth over $10 billion, could boost proposals by Boeing Co to launch a new plane in that segment while Airbus is preparing to counter with a new version of A321 and the larger A330neo.
Delta
is “very interested” and in discussions with Boeing about its proposed
new midsized airplane, known as the NMA, Bastian said. Boeing will
decide in 2020 whether to produce the plane which industry sources say
would have two aisles and seat seven across.
The
plane aims to address the so-called middle of the jet market between
traditional narrowbody jets with one aisle and long-distance widebody
planes.
“Hopefully they’ll decide to go,” Bastian said.
Delta
is already in the process of replacing one-third of its mainline fleet,
one of the largest and oldest among U.S. airlines, in the next five
years.
Delta shares were up 2.5 percent at $50.03 in afternoon trading after Bastian said spring and summer travel demand was solid.
Delta Air Lines reveals their first A220 in Atlanta, Georgia at the TechOPS engine shop at Hartsfield Jackson International airport on Monday October 29,2018. (Chris Rank/Rank Studios)
ALITALIA INVESTMENT?
Bastian
said it was too early to decide whether to invest in Alitalia, which
was put under special administration in 2017 after workers rejected the
latest in a long line of rescue plans, leaving the Italian government
seeking a buyer to save the airline.
Italy’s
state-controlled railway Ferrovie dello Stato (FS) said last month it
would start negotiations with Delta and EasyJet Plc to draft a rescue
plan, the third in a decade, for the struggling airline.
Delta
executives have held talks in Rome in recent weeks, according to
Italian industry sources, but doubts remain whether an outside investor
would be willing to take a minority stake in the strike-prone airline.
Bastian
said that the numbers being thrown around for Alitalia are “pretty
large” and “not the kind of numbers that we’re considering, just to
quell any concerns.”
Still,
he said it makes sense to consider an investment in Italy, an important
market for U.S. consumers, and noted that Delta’s global growth over
time will skew toward international rather than congested domestic
markets.
That growth could come through direct investments in overseas carriers.
“You
can’t actually own partner carriers so you have to find ways to
influence them beyond just a commercial contract as a partner, and what
we have found is that by making an investment into these businesses we
can get actually inside the board room and help to start shape the
strategy.”
(Reporting by Tracy Rucinski in Chicago, additional reporting by Tim Hepher in Paris; Writing by Nick Zieminski; Editing by Phil Berlowitz and Lisa Shumaker)
* Aegean aims to raise up to 200 mln eur from sale
* Bond issue set for March 5-7
* Up to 147 mln euro to fund down payments for new planes
ATHENS, March 4 (Reuters) – Greece’s largest carrier Aegean Airlines will proceed with a sale of bonds on March 5-7 to raise up to 200 million euros ($226.86 million) for down payments on new Airbus aircraft and the construction of a new pilot training centre.
According to the public offering prospectus, about 30 percent of the issue will be allocated to retail investors, while 70 percent will go to “qualified investors”.
The seven-year bonds, each with a nominal value of 1,000 euros, will pay a semi-annual coupon. In Greece interest payments are taxed at 15 percent. Trading of the bonds on the Athens stock exchange will start on March 13.
Pricing will be determined via book building.
Aegean, a member of the Star Alliance airline group, will use 75 percent of the proceeds to partly finance down payments on new aircraft based on a deal with Airbus to renew its fleet of single-aisle planes and add capacity for future expansion.
Aegean picked Airbus in March last year for an order of up to 42 aircraft worth $5 billion in one of the biggest investments by a private Greek company since the country’s debt crisis erupted in 2010.
The down payments are due from the first quarter through to the last quarter of 2023 for new generation A320neo and A321 Airbus jets.
Deliveries of the new planes are expected to start in the first half of 2020 and conclude by the end of 2024.
Aegean has picked U.S. engine maker Pratt & Whitney to power the new A320neo aircraft and provide engine maintenance.
The carrier plans to use 14 percent of the proceeds or up to 27.5 million euros to build a new 12,000 square metre training centre with flight simulators for its flight crews at the Athens International Airport (AIA).
About 11 percent of the proceeds or up to 21.6 million will be used as working capital.
Piraeus Bank and Eurobank are the joint coordinators and bookrunners with Alpha Bank and Euroxx Securities the lead underwiters. Euroxx Securities was the issue adviser.
($1 = 0.8816 euros)
(Reporting by George Georgiopoulos; editing by Emelia Sithole-Matarise)
HANOI
(Reuters) – Fast-growing Vietnamese budget airline VietJet Aviation JSC
is expected to sign a major jet deal with Boeing Co on the sidelines of
next week’s Trump-Kim summit, according to sources familiar with the
matter.
U.S.
President Donald Trump and North Korean leader Kim Jong Un will hold
their second summit in the Vietnamese capital of Hanoi on Feb 27-28.
Holding
a signing ceremony during Trump’s visit would help emphasise
strengthening economic and military ties between the United States and
Vietnam.
VietJet,
while not government-owned, increasingly uses state visits to showcase
major plane orders balanced between Boeing and Airbus SE. It signed a
deal to buy 100 Boeing 737 MAX narrowbody jets when former U.S.
President Barack Obama visited Hanoi in 2016.
The
airline is likely to finalise next week a separate provisional deal
agreed last year at the Farnborough Airshow to buy another 100 Boeing
737 MAX jets worth almost $13 billion at list prices, sources said on
condition of anonymity due to an expected announcement by VietJet.
The
U.S. Federal Aviation Administration declared last week that Vietnam
complied with international aviation standards, in a move that would
allow Vietnamese carriers to fly there for the first time and codeshare
with U.S. airlines.
VietJet
said last week it planned to purchase widebody jets capable of U.S.
flights to open routes to cities with large Vietnamese communities in
the United States, such as in California.
It might be too early for VietJet to place a widebody order, said one of the sources.
Another
source briefed on the matter said the deal for 100 737 MAX jets was
already on Boeing’s books, having been firmed up earlier and listed as
an unidentified customer.
Boeing declined to comment. VietJet did not respond immediately to a request for comment.
VietJet
finalised a deal in November with Airbus for 50 A321neo jets during a
visit to Hanoi by French Prime Minister Edouard Philippe that had also
been announced provisionally at the Farnborough Airshow.
VietJet
operates 385 flights daily within Vietnam and to places such as Japan,
Hong Kong, South Korea, Taiwan, Singapore, China, Thailand, Myanmar and
Malaysia.
However,
industry analysts have questioned whether the airline will take
delivery of all the aircraft on order as the aerospace industry reaches
the peak of an extended growth phase.
(Reporting by James Pearson in Hanoi; Additional reporting by Tim Hepher in Paris; Writing by Jamie Freed; Editing by Muralikumar Anantharaman)
PARIS (Reuters) – Airbus has begun lining up tentative orders for a longer-range version of its A321 jetliner, seeking to exploit signs of hesitation at arch-rival Boeing over whether to develop a new model in a hotly contested niche of the airplane market.
The European firm is in detailed talks with airlines over the price and timing of the longer-range design – known as A321XLR – and has pencilled in some orders subject to a formal launch, expected this year, industry sources said.
Airbus is looking for 200-300 draft orders before committing to build the A321XLR, in a move that would limit the space available for a mid-market alternative that Boeing hopes to launch in a gap between medium-haul and long-haul jets.
“Every A321XLR that Airbus sells, means one less potential sale for the NMA (Boeing’s proposed New Mid-sized Airplane),” an industry source said.
An Airbus spokesman said the planemaker is “always talking to customers” and declined further comment.
The middle of the jet market is at the centre of one of the most widely watched airplane design battles for years.
Boeing is aiming its potential new 220 to 260-seat NMA at a niche previously served by two models: its own 757, a long-range single-aisle jet, and its 767, a larger twin-aisle model.
Boeing dominates the upper end of that spectrum but has come under pressure from Airbus at the lower end.
Last month it postponed a decision on whether to launch the NMA to 2020 from 2019, though it said it could still decide whether to offer the plane on a preliminary basis this year. It maintained its goal of seeing any new jet enter service in 2025.
Facing a potential new competitor, Airbus plans a pincer move, using derivatives of two existing models: the A321neo and its souped-up sister versions – the A321LR and the proposed A321XLR – at the lower end and an upgraded A330 at the top end.
Unlike the smaller A321neo, the upgraded A330neo has been selling poorly but received a boost last week when Emirates ordered 40 of the planes.
The A321XLR would attempt to make it harder for Boeing to launch its new plane by increasing pressure at the lower end of the roughly 200-270-seat mid-market, valued at hundreds of billions of dollars over 20 years.
It would have a higher maximum take-off weight of 101 tonnes and 400-500 nautical miles more range than the A321LR, Airbus’ longest-range single-aisle. It would not carry extra passengers.
The A321LR can carry 206 people for 4,000 miles or up to 240 people on shorter trips. Boeing’s proposed new jet is expected to fly 4,000-5,000 miles, but Boeing says it will do so with the greater comfort of a twin-aisle jet and at a lower cost.
Airbus is expected to try to create momentum for the A321XLR by offering airlines with existing orders for the A321neo or A321LR versions a chance to upgrade to the A321XLR.
U.S. sources have dismissed the A321XLR, saying another model in the A321 family would dilute the second-hand market, making it harder to finance orders of the new longer range version for which the market remains relatively niche.
(Reporting by Tim Hepher; editing by Richard Lough)
