SHANGHAI (Reuters) – China’s aviation regulator said on Monday it had ordered Chinese airlines to suspend their Boeing Co 737 MAX aircraft operations by 6 p.m. (5.00 a.m. ET) following a deadly crash of one of the planes in Ethiopia.
An Ethiopian Airlines 737 MAX 8 bound for Nairobi crashed minutes after take-off on Sunday, killing all 157 people on board.
It was the second crash of the 737 MAX, the latest version of Boeing’s workhorse narrowbody jet that first entered service in 2017.
In October, a 737 MAX 8 operated by Indonesian budget carrier Lion Air crashed 13 minutes after take-off from Jakarta on a domestic flight, killing all 189 passengers and crew on board.
The Civil Aviation Administration of China (CAAC) said in a statement it would notify airlines as to when they could resume flying the jets after contacting Boeing and the U.S. Federal Aviation Administration (FAA) to ensure flight safety.
“Given that two accidents both involved newly delivered Boeing 737-8 planes and happened during take-off phase, they have some degree of similarity,” the CAAC said, adding that the order was in line with its principle of zero-tolerance on safety harzards. The 737 MAX 8 is sometimes referred to as the 737-8.
The cause of the Indonesian crash is still being investigated. A preliminary report issued in November, before the cockpit voice recorder was recovered, focused on airline maintenance and training and the response of a Boeing anti-stall system to a recently replaced sensor but did not give a reason for the crash.
Chinese airlines have 96 737 MAX jets in service, the state company regulator said on Weibo.
Caijing, a Chinese state-run news outlet that covers finance and economics, said many flights scheduled to use 737 MAX planes would instead use the 737-800 models.
A Boeing spokesman declined to comment.
A U.S. official told Reuters the United States was unsure of what information China was acting on.
The U.S. official, speaking on condition of anonymity due to the sensitivity of the matter, said there were no plans to follow suit given the 737 MAX had a stellar safety record in the United States and there was a lack of information about the cause of the Ethiopian crash.
Western industry sources say China has been at pains in recent years to assert its independence as a safety regulator as it negotiates mutual safety standard recognition with regulators in the United States and Europe.
In 2017, it signed a mutual recognition deal with the FAA, but industry sources say it has struggled to gain approval from the FAA that would allow it to sell its C919 airliner to Western airlines.
SAFETY STANDARDS
According to flight tracking website FlightRadar24 there were no Boeing 737 MAX 8 planes flying over China as of 0043 GMT on Monday.
Most of Air China Ltd’s 737 MAX fleet of 15 jets landed on Sunday evening, with the exception of two that landed on Monday morning from international destinations, according to data on FlightRadar24.
It did not list any upcoming scheduled flights for the planes, nor did China Southern Airlines Co, which also has its fleet on the ground.
China Eastern Airlines Corp Ltd four 737 MAX jets landed on Sunday evening and no further flights were scheduled until Tuesday, FlightRadar24 data showed.
Cayman Airways has grounded both of its new 737 MAX 8 jets until more information was received, the Cayman Islands airline said in a statement on its website.
Fiji Airways said it had followed a comprehensive induction process for its new Boeing 737 MAX 8 aircraft and it had full confidence in the airworthiness of its fleet.
“We continue to ensure that our maintenance and training program for pilots and engineers meets the highest safety standards,” the airline said.
Singapore Airlines Ltd, whose regional arm SilkAir operates the 737 MAX, said it was monitoring the situation closely, but its planes continued to operate as scheduled.
Indonesia said it would continue to monitor its airlines operating the 737 MAX, which include Lion Air and Garuda Indonesia but it did not mention any plan to ground the planes.
(Reporting by Josh Horwitz and John Ruwitch; additional reporting by Brenda Goh in Shanghai, Stella Qiu in Beijing, David Shepardson in Washington, Tom Westbrook in Sydney, Jamie Freed in Singapore; Edward Davies in Jakarta and Tim Hepher in Paris; Editing by Richard Pullin, Robert Birsel)
– Global 7500 jet’s extraordinary 8,152 nm flight is the longest mission ever flown by a purpose-built business jet – Flight also sets record for highest speed over longest distance in business aviation history, connecting Singapore to Tucson, AZ* – Aircraft landed with fuel reserves well above NBAA requirements; 4,300 lb of remaining fuel represents nearly 1,5 hours of additional flight – Aircraft provides the industry’s largest cabin and best cabin experience, perfectly suited for trans-oceanic journeys and an exceptionally smooth ride
Bombardier is proud to announce that its Global 7500 aircraft, has once again demonstrated its ability to go the distance by completing the longest range business jet flight in history**, successfully completing an 8,152-nautical-mile flight non-stop, pushing the boundaries of business travel.
The award-winning business jet departed from Singapore Changi Airport at 7:12 a.m. local time and arrived at Tucson International Airport at 8:19 a.m. local time, completing the long-range speed record flight for the city-pair.
“The Global 7500 aircraft was built to break all the records,” said David Coleal, President, Bombardier Business Aircraft. “It achieved the industry’s longest mission ever in business aviation after only two months in service. We’ve demonstrated its unequaled long-range and high speed capabilities, but also its ability to break records confidently with healthy fuel reserves remaining, once again, confirming its unsurpassed performance to customers.”
Since its entry-into-service, the Global 7500 jet has emphatically proven itself to be the highest-performing aircraft in the industry and this record showcases the real-world capabilities of this impressive aircraft. With a top speed of Mach 0.925, the aircraft has unquestionably shown its ability to fly even further than any other business jet with its advertised range of 7,700 nautical miles. The achievement of a flight that reaches 8,152 nautical miles clearly demonstrates that the aircraft is the only business jet with the high-performance capabilities required for long flights. Providing access to these demanding, long-range routes is an invaluable resource for customers.
Over the last two months, the Global 7500 jet has demonstrated exceptional performance and reliability, this first aircraft has completed more than 170 hours of flight around the world.
The Global 7500 aircraft offers spaciousness that is unique among business jets, with its award-winning interior featuring a full-size kitchen and four true living spaces. The Global 7500 aircraft also debuts Bombardier’s patented Nuage seat, which was meticulously designed for maximum comfort and will be exclusive to the new Global family of aircraft.
About Bombardier
With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion.
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)
HANOI, Vietnam, Feb. 27, 2019 /PRNewswire/ — Boeing [NYSE: BA] and Bamboo Airways today confirmed an order for 10 787-9 Dreamliners valued at $3 billion
according to list prices. The order for the super-efficient and
longest-range member of the Dreamliner family was unveiled during a
signing ceremony in Hanoi, witnessed by U.S. President Donald Trump and General Secretary and President of Vietnam Nguyen Phu Trong.
“We are excited to be adding the new 787 Dreamliner to our growing fleet,” said Mr. Trinh Van Quyet, Chairman of FLC Group and owner of Bamboo Airways. “Our long-term vision is to connect Vietnam with key markets in Asia, Europe and North America
and the Dreamliner will enable us to launch these long-haul operations.
The 787’s superior operating economics and efficiency, as well as the
passenger pleasing interior of the Dreamliner, will allow us to
successfully grow our business while enabling us to better serve our
customers.”
This order was previously unidentified on Boeing’s Orders & Deliveries website.
Bamboo Airways, a startup airline founded in 2017, began commercial
operations in January, offering flights linking the capital of Hanoi and Ho Chi Minh City with cities in Vietnam.
The airline plans on offering up to 40 domestic routes in 2019.
Additionally, Bamboo is preparing to launch international service to Thailand, South Korea, Singapore, Japan, Taiwan and Australia, before broadening service to other destinations in Asia, Europe, and North America.
“The 787 Dreamliner’s unmatched efficiency, range and flexibility
make it the perfect airplane for Bamboo Airways to achieve its
long-range ambitions. We are excited to advance the partnership between
Boeing and Bamboo Airways and we look forward to helping them connect Asia with Europe, North America and beyond,” said Kevin McAllister, president and CEO of Boeing Commercial Airplanes.
The 787 Dreamliner family allows airlines to fly long ranges while
reducing fuel costs by more than 20 percent compared to previous
widebody jets. The Dreamliner’s superior efficiency and range have
allowed airlines to open more than 210 new non-stops routes around the
world since it entered service.
At 63 meters (206 feet), the 787-9 can fly 290 passengers, in a
typical two-class configuration, up to 7,635 nautical miles (14,140
kilometers). The airplane is 6 meters longer than the original
Dreamliner and is capable of carrying more passengers and flying
farther.
The 787 Dreamliner is the fastest-selling widebody airplane in
history with more than 1,400 orders from 75 customers since its launch.
Nearly 800 Dreamliners have entered service around the world, helping
airlines save 33 billion pounds of fuel.
Bamboo Airways is wholly-owned by the FLC Group, a Vietnamese multi-industry company, focusing on aviation, real estate, resorts, farming, and golf.
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)
SAVANNAH, Ga., Feb. 20, 2019
/PRNewswire/ — Gulfstream Aerospace Corp. today announced it will
showcase the clean-sheet, record-breaking Gulfstream G500 along with the
class-leading, super-midsize Gulfstream G280 at the 2019 Aviation
Africa Summit & Exhibition from Feb. 27-28 in Kigali, Rwanda.
Gulfstream’s exhibition will be at the Radisson Blu Hotel &
Convention Centre, and the aircraft will be on static display at Kigali International Airport.
“Gulfstream is committed to customers in sub-Saharan Africa and growing business aviation in the region,” said Mark Burns, president, Gulfstream. “Rwanda
has made great investments in business aviation, and we are proud to
support those efforts with our presence and static display in Kigali.
Whether flying from country to country or intercontinentally, the G500
and G280 offer operators ideal options for this region.”
The
award-winning G500 can fly 5,200 nautical miles/9,630 kilometers at its
long-range cruise speed of Mach 0.85 and can easily connect Kigali to London at Mach 0.90 or Kigali to Singapore at Mach 0.87. When it entered service in September 2018,
the G500 had already achieved 22 city-pair records around the world and
currently holds a total of 32 city-pair records. The G500 that will be
on display at Aviation Africa is in service with Qatar Airways’ Qatar
Executive fleet.
The high-performing and agile G280 can fly 3,600 nm/6,667 km at Mach 0.80, and can travel nonstop from Kigali to Dubai, United Arab Emirates, at Mach 0.84 or Kigali to Bangalore, India,
at Mach 0.80. The aircraft can easily access smaller airports, reach
high altitudes quickly and offers excellent takeoff and landing
performance.
NOTE TO EDITORS
Gulfstream Aerospace Corporation, a wholly owned subsidiary of General Dynamics (GD),
designs, develops, manufactures, markets, services and supports the
world’s most technologically advanced business-jet aircraft. Gulfstream
has produced more than 2,800 aircraft for customers around the world
since 1958. To meet the diverse transportation needs of the future,
Gulfstream offers a comprehensive fleet of aircraft, comprising the
Gulfstream G280™, the Gulfstream G550™, the Gulfstream G500™, the Gulfstream G600™, the Gulfstream G650™ and the Gulfstream G650ER™. We invite you to visit our website for more information and photos at www.gulfstreamnews.com.
-EBIT before special items(1) up 42% year-over-year to more than $1.0B on revenues of $16.2B for the year; EBIT increased 235% year-over-year to $1.0B
-2018 EBIT margin before special items(1) up 180 bps year-over-year to 6.3%; EBIT margin of 6.2%
-Full year free cash flow(1) of $182M, comprising proceeds from certain transactions, including $1.0B of cash generation in the fourth quarter; full year cash flows from operating activities of $597M
-Strong backlog growth at Business Aircraft and Transportation, with full year book-to-bill ratios(2) of 1.1 at both segments, and a consolidated backlog of $53.1B
-2019 guidance affirmed, clear path to achieve 2020 objectives
Bombardier (TSX: BBD.B) today reported its fourth quarter and full year 2018 results, highlighting solid margin growth, improved cash flows and continued progress executing its turnaround plan. The successful entry-into-service of the Global 7500 business jet in the fourth quarter also marked the completion of Bombardier’s heavy investment cycle, a key milestone in the company’s turnaround plan.
“2018 was a year of solid progress,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We continued to strengthen our business and set a strong foundation for growth. A foundation that includes a refreshed portfolio of best-in-class products, industry-leading backlogs and a more streamlined cost structure, all of which gives us a clear path to achieve our 2020 objectives.”
“As we begin the fourth year of our turnaround journey, Bombardier is a much stronger company,” continued Bellemare. “Our major program risks are retired, our heavy investment cycle is behind us and our franchises are well positioned for growth. For 2019, we are focused on flawless execution of our rail projects, the ramp-up of the Global 7500 and entry-into-service of the Global 5500 and Global 6500. We will also continue to drive financial performance through disciplined capital allocation and improved productivity and efficiency across the organization.”
Bombardier’s 2018 consolidated revenues reached $16.2 billion, reflecting 3% average year-over-year growth across Transportation, Business Aircraft and Aerostructures, excluding currency impact. Book-to-bill ratios(2) at Transportation and Business Aircraft both equaled 1.1 for the year, demonstrating strong demand for Bombardier’s products and services. Bombardier’s consolidated backlog reached $53.1 billion at the end of 2018, supporting future growth targets.
EBIT before special items continued to improve in 2018, increasing 42% year-over-year from $725 million to more than $1.0 billion, the top-end of the company’s guidance. The 6.3% EBIT margin before special items in 2018 represents a strong 330 bps increase since the start of the turnaround plan in 2015, well above the 5-6% range originally targeted. On a reported basis, EBIT increased 235% year-over-year to $1.0 billion, representing a margin of 6.2%.
Bombardier generated $1.0 billion of free cash flow in the fourth quarter of 2018. Full year free cash flow generation equaled $182 million, at the high end of the company’s revised guidance. This amount includes aggregate net proceeds of approximately $750 million from the sale of the Downsview property and the monetization of royalties associated with the previously announced CAE transaction. Cash flows from operating activities amounted to $597 million for the full year, and to $1.3 billion in the fourth quarter. Bombardier ended the year in a solid cash position, with $3.2 billion in cash and cash equivalents.
Selected results
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Business Aircraft achieved a historical milestone in December 2018 with the on plan service entry of the largest and longest range industry flagship Global 7500 aircraft. With a strong backlog and unsurpassed performance in its category, the Global 7500 is expected to be Business Aircraft’s key growth driver for years to come.
Revenues, EBIT before special items and deliveries were in line with guidance for 2018.
The segment achieved industry leading deliveries at 137 aircraft for 2018, including 42 Global, 83 Challenger and 12 Learjet.
Continued progress on the aftermarket strategy drove a 14.3% revenue increase year-over-year. Further expansion of our service network was also announced with the groundbreaking for a new centre in Miami, Florida to service U.S. and Latin American customers.
During the year, Business Aircraft unveiled the new Global 5500 and Global 6500 aircraft featuring an all-new Rolls-Royce engine and a newly optimized wing, increasing the aircraft range and fuel burn performance. With flight testing at advanced stages, these performance-leading aircraft are expected to enter into service at the end of 2019.
Commercial Aircraft
In 2018, Commercial Aircraft significantly reshaped its portfolio, focusing on the CRJ Series program and its aftermarket business, while also participating in the growth of the A220 through its partnership with Airbus:
The C Series Partnership (CSALP) with Airbus closed on July 1, 2018, bringing together two complementary product lines and the benefit of Airbus’ global reach, creating significant value potential for the newly rebranded A220.
A definitive agreement was reached with Longview Aircraft Company of Canada Limited for the sale of the Q Series aircraft program assets, including aftermarket operations and assets, for gross proceeds of approximately $300 million, on November 7, 2018. The transaction is expected to close by the second half of 2019, subject to customary closing conditions and regulatory approvals. Net proceeds for this transaction are expected at approximately $250 million net of fees, liabilities and normal closing adjustments.
Revenues and aircraft deliveries for 2018 were in line with guidance on the basis of the deconsolidation of CSALP results from Commercial Aircraft since July 1, 2018.
EBIT loss before special items(11) was $157 million reflecting for the most part losses on the C Series program in the first half of the year and the post-closing CSALP equity pickup. EBIT loss of $755 million includes a $616 million pre-tax accounting charge related to the closing of the CSALP transaction.
Commercial Aircraft continues to actively participate in the regional aircraft market with the established scope-compliant CRJ Series aircraft, with a focus on reducing costs and increasing volumes while optimizing the aftermarket for the large installed base in service around the world today. As the focus is to return the program to profitability, Bombardier also announced in 2018 it is exploring strategic options for the program.
Aerostructures and Engineering Services
Aerostructures and Engineering Services is positioned as a key supplier on early life cycle growth programs, including the new A220 and Global 7500 aircraft, expected to drive sustainable growth.
In 2018, the segment revenues grew 21% year-over-year to $2.0 billion in line with guidance.
Focused execution during the ramp-up of these programs and a one-time favorable item (approximately 50 bps) associated with the closing of the C Series Partnership have enabled to deliver 9.6% EBIT before special items, above its guidance. EBIT margin for the segment was 7.5%.
On February 6, 2019, the Corporation acquired the Global 7500 aircraft wing program operations and assets from Triumph Group Inc., for a nominal cash consideration. This transaction is expected to strengthen Bombardier’s position as a leading aerostructures manufacturer, to enable the company to leverage its extensive technical expertise to support the ramp-up of the Global 7500 aircraft, and to enhance its long-term success. Bombardier will continue to operate the production line and integrate the employees currently supporting the program at Triumph’s Red Oak, Texas facility.
On February 7, 2019, Paul Sislian was appointed President, Aerostructures and Engineering Services. Paul brings more than 20 years of aerospace and industrial experience, including serving most recently as Chief Operating Officer for Bombardier Business Aircraft.
Transportation
On February 7, 2019, Danny Di Perna was appointed President, Bombardier Transportation. Danny brings more than 30 years of industrial experience to this new role. He has a proven record of success leading complex industrial projects and organizations, driving operational efficiency and improving quality. Most recently, Danny led Bombardier’s Aerostructures and Engineering Services segment.
In 2018, Transportation recorded orders totaling $9.9 billion, fueled by a $3.3 billion order intake in the fourth quarter. Book-to-bill(2) reached 1.5 for the fourth quarter, resulting in a 1.1 ratio for the full year, continuing to position the segment for growth in revenues and profitability, supported by strong industry fundamentals.
Order intake for the year reflects project wins across geographies, with notable contract awards in Europe, led by SNCF’s repeat order in France, in Asia led by the Singapore Metro contract, and North America with Airport and Mass transit mobility solutions for Phoenix and Los Angeles.
The backlog reached $34.5 billion as at December 31, 2018. The backlog growth (excluding currency fluctuations) was supported by a stronger mix of platform projects and increasing signalling and service contract orders, consistent with Transportation’s strategy to increase speed-to-market; provide customers with end-to-end solutions; de-risk project execution while also growing margins.
Subsequent to the fourth quarter, in January 2019, Transportation was awarded a contract to supply 113 new generation passenger rail cars valued at $669 million with options for up to 886 additional cars, by the New Jersey Transit Corporation.
Financial performance for 2018 positions Transportation to reach 2019 guidance:
Revenues grew 4% year-over-year to $8.9 billion, in line with guidance, supported by a favourable currency impact in the first half of the year (2% growth excluding currency impact). Services and signalling grew to over 34% of revenues for the year, as increasing focus turns to integrated customer solutions.
EBIT before special items grew to $750 million for the year, representing an 8.4% margin (EBIT of $774 million, or 8.7% margin). Fourth quarter margins before special items were 7.7% (10.9% EBIT margin), as a result of contract estimate adjustments largely associated with a legacy project, resulting in full year margins before special items, slightly below the 8.5% guidance.
As discussed at the Company’s December 2018 Investor Day, Transportation continues to advance a number of legacy projects. The Company has plans in place and is taking actions to finalize system integration, obtain homologation and align delivery schedules with customers. Bombardier expects to substantially complete deliveries on most of these projects and significantly recover working capital through 2019.
As the portfolio continues to improve, Transportation anticipates growing EBIT margins before special items to approximately 9% for 2019, in line with guidance.
CDPQ Investment in BT Holdco
The Company also announced that Transportation’s results in 2018 did not reach the performance targets underlying Caisse de dépôt et placement du Québec’s (CDPQ) investment in BT Holdco. Accordingly, for the 12-month period starting on February 12, 2019, Bombardier’s percentage of ownership on conversion of CDPQ’s shares will decrease by 2.5%, returning to the original 70%; and the preference return entitlement rate on liquidation of its shares will increase from 7.5% to 9.5% for this period. Any dividends paid by BT Holdco to its shareholders during this period will be distributed on the basis of each shareholder’s percentage of ownership upon conversion, being 70% for Bombardier and 30% for CDPQ. These adjustments will become effective once the audited consolidated financial statements of BT Holdco are duly approved by its board of directors.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
A group of lucky Cathay Pacific customers have scored first-class seats at economy prices, in the second fare blunder by the airline this month.
Tickets on trips from Hong Kong to Portugal were sold on the airline’s website for $1,512, instead of $16,000 usually charged for a similar journey.
The carrier said it would honour the tickets as it investigates the cause of the error.
It extends a recent run of blows to the firm including a huge data breach.
The mispriced fares were available on Cathay Pacific’s website on Sunday.
First-class flights from Lisbon to Hong Kong – via London with a connecting flight – were offered for $1,512 (£1,177), according to the South China Morning Post.
A similar first-class journey through Frankfurt would cost $16,000.
In a statement, the Hong Kong carrier said it would honour the tickets.
“We are looking into the root cause of this incident both internally and externally with our vendors,” it said.
“For the very small number of customers who have purchased these tickets, we look forward to welcoming you on board to enjoy our premium services.”
Just two weeks ago the airline made the same blunder.
Lucky flyers made off with business-class seats on flights from Vietnam to New York for about $675 return. They should have cost $16,000.
At the time, the carrier acknowledged its “mistake” and again, said it would welcome the passengers onboard.
Cathay Pacific to honour $16,000 fares sold for $675
Airlines have a mixed history of honouring tickets sold in error.
Singapore Airlines, for example, honoured tickets sold for less than half price in 2014. But United Airlines cancelled transatlantic tickets sold for less than $100 by a “third party software provider” the following year.
A challenging year
The latest stumble extends a bad run for Cathay Pacific.
In October, the firm was the subject of a data breach in its IT systems, jeopardising the personal information of up to 9.4 million passengers.
Huge data hack hits Cathay Pacific
A month earlier, it had to send one of its planes back to the paint shop after spelling the airline’s name “Cathay Paciic” on the side of a jet.
Those missteps come as the airline tries to return to profitability after posting its first ever back-to-back annual loss in March.
Cathay Pacific has struggled against competition, particularly from low-cost Chinese carriers covering Hong Kong, mainland China and South East Asia.
Singapore, December 19, 2018 – Embraer has announced the signing of a contract with the Government of Kiribati, in partnership with their national airline, Air Kiribati, for two firm orders for the E190-E2 E-Jets and two purchase rights for the same model. With all purchase rights being exercised, the contract has a value of USD 243 million, based on current list prices. The order will be included in Embraer’s 2018 fourth-quarter backlog.
Scheduled for a 2019 delivery, the E190-E2 will enable the flag carrier for the Republic of Kiribati, located in the central Pacific, to fly longer domestic and international routes than it currently does with its turboprop fleet. Air Kiribati will be the launch operator for the E190-E2 in the Asia Pacific region (excluding China). This order comes after a three-week Asia Pacific tour of the ‘Shark’ livery E190-E2 in October, which included a stop in Tarawa, the capital of Kiribati. Spanning four time zones and comprised of more than 30 islands, Kiribati is the only country in the world to be in all four hemispheres.
“We warmly welcome Air Kiribati to the Embraer family and we will work closely with the airline as they transition to the E190-E2 through our extensive entry-into-service package and world-class support team in the region,” said Cesar Pereira, Asia Pacific Vice President, Embraer Commercial Aviation. “Flying in the Pacific, over large bodies of water, requires outstanding range, performance and ample cargo capacity. Air Kiribati’s selection of the E190-E2 is yet another validation of the world’s most efficient single-aisle jet design, which exceeds these requirements and will enable the airline to enhance its flight frequency and to boost its network.”
“We were impressed with what we saw when the E190-E2 visited Kiribati in October,” said Hon. Willie Tokataake, Minister for Information, Communication, Transport and Tourism Development of the Kiribati Government. “Given its impressive range, lower fuel consumption and maintenance costs and dual class configuration that brings comfort to our passengers compared to its peers, the E190-E2’s capabilities empower us to enhance connectivity within our country and beyond, taking our nation to its next phase of growth.”
With a maximum range of up to 2,850 nautical miles, the E190-E2 can operate over the vast expanse of Kiribati, including from Tarawa directly to Kiritimati (Christmas) Island, one of the most challenging routes in the Pacific. The current domestic connection from Tarawa to Kiritimati includes an international stopover in Fiji.
The E190-E2 is part of Embraer’s new generation E-Jets E2 family of aircraft, which can seat between 70 to 150 passengers. The E190-E2 specifically, can seat up to 114 passengers, and is the first member of the E-Jets E2 family of aircraft to enter into service in April 2018.
Embraer has been present in the region since the first Bandeirante was delivered in 1978 in Australia and has been providing comprehensive support and services through the years to aircraft based in Australia and in the Pacific region.
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.
In keeping with todays architecture theme, reporter India Block picks 10 of the year’s best skyscrapers for our review of 2018, from one sporting a 100-metre-high waterfall to the northernmost tower block in the world.
Towering 170 metres over Milan, the Generali Tower expresses Zaha Hadid Architects’ signature curves in a helical twist that runs through the tower.
No two floors are aligned inside the 44-storey skyscraper, hence the nickname “the twisted one”. Now the city’s third-tallest building, it stands together with Arata Isozaki’s 202-metre high Allianz Tower and the incomplete 175-metre tall PwC tower by Studio Libeskind on Milan’s former expo site.
