Korean Air leveraged its cargo operation to turn a profit in the second quarter when nearly every other passenger airline has reported enormous losses after COVID-19 travel restrictions brought most flight operations to a standstill.
The South Korean carrier has one advantage that many pure passenger airlines lack – freighters. The company said it increased the operation rate of its freighter fleet and maximized cargo supply on passenger airplanes to generate an operating profit of $123.7 million and net income of $135.3 million.
Korean Air lost the ability to sell cargo space in the lower deck of passenger airplanes when travel demand sagged and it suspended most flights, resulting in a 92% drop in passenger revenue. The airline said it replaced that capacity by increasing the operation rate of freighters by 22% year-over-year through strict maintenance checks and oversight – increasing its total capacity by 1.9%.
The freighter fleet consists of 23 Boeing 747-8 and 747-400 aircraft, according to the airline’s website. It ranked as the sixth-largest cargo airline in the world in 2018, according to the International Air Transport Association.
Airbus Corporate Helicopters (ACH) has won a new order for its latest ACH160 helicopter, announced just days after the H160 achieved certification.
This new order, placed by an experienced Italian operator for use on private and corporate flights mainly inside Italy, means the ACH160 has been ordered by customers in eight countries across North America, Latin America, Europe, China and South-East Asia.
The client, an existing ACH twin-engined helicopter operator, has specified a customised interior configured for six passengers.
The ACH160 is the premium version of the new H160 helicopter which was certified by EASA on 1 July ready for deliveries to private and business customers commencing later this year. It is the latest member of the ACH family and the most technologically advanced helicopter in its class.
As well as its range of stylish interiors including bespoke solutions, the ACH160 offers a smooth and quiet ride allied to the Helionix advanced digital avionics system ensuring carefree handling and the highest level of safety.
Frederic Lemos, Head of ACH, said: “This new order from a highly knowledgeable ACH customer is yet more evidence of the strong welcome being received by the ACH160 in this demanding sector even at a notably challenging time for the helicopter market.”
The full ACH helicopter range consists of the ACH125, ACH130, ACH135, ACH145, ACH160 and ACH175 variants of Airbus Helicopters’ comprehensive and market-leading family of light and medium models. A range of premium-design aircraft completions, including bespoke designs, is available for all models.
Having earned its reputation as the new-generation aerial tanker of choice for military services worldwide, Airbus’ A330 Multi Role Tanker Transports (MRTT’s) are now being outfitted for their multi-mission duties in an optimised industrial process – enabling five aircraft to undergo the conversion every year.
The A330 MRTT is based on Airbus’ popular A330 widebody passenger airliner, with the aircraft produced on the company’s commercial airplane final assembly line in Toulouse, France. Once their initial built-up is complete, they are flown to Airbus’ military aircraft facility in Getafe, Spain to be transformed with hardware and systems for their dual roles as an air-to-air refuelling platform and an airlifter for troops and cargo.
Thousands of new parts integrated
During the conversion, Airbus teams install some 16,000 types of new components and approximately 450 new electrical harnesses (for a total cabling length of more than 50 km.), as well as 6,000 brackets and 1,700 connectors.
With 42 A330 MRTTs delivered to date, Airbus’ has reduced the end-to-end transformation time by one month, introducing increased digitalization and applying the “takt” principle of lean production methodology – in which the aircraft moves through the conversion with zero hours pending and zero work orders open.
The digitalization includes the increasing use of Microsoft HoloLens mixed reality headsets instead of computer tablets. With 80 to 90 work orders now produced with HoloLens, the goal is to apply the system during 2020 for 50% of overall work orders, mainly for electrical and hydraulic installations.
A key element of the conversion is installing the A330 MRTT’s air-to-air refuelling hardware. All aircraft are equipped with hose and drogue units, and most customers have opted for Airbus’ highly capable fly-by-wire Aerial Refuelling Boom System (ARBS) – which provides enhanced controllability during in-flight fuel transfers to receiver airplanes.
The A330 MRTT transformation process includes locating the Airbus-developed Air Refuelling Console in the cockpit area behind the pilots. Containing seats for two crew members, this station enables the aerial refuelling to be remotely controlled, aided by an advanced high-resolution observation system with panoramic 3D-vision for operations day and night.
On the A330 MRTT’s main deck, the aircraft’s widebody cross-section can be configured a variety of roles, from the transportation of troops and personnel with capacities for 268 passengers in a two-class configuration, to aeromedical evacuation – accommodating two intensive care units, 16 stretchers, along with seating for medical staff and passengers.
Customers from around the world
Airbus delivered its initial A330 MRTT in December 2009, with this no. 1 aircraft received by the Royal Australian Air Force. Today, A330 MRTTs are flown by Australia, France, Singapore, Saudi Arabia, South Korea, the United Emirates and United Kingdom – logging a combined total of more than 200,000 flight hours.
A total of 60 A330 MRTTs have been ordered for operations at the service of 13 nations.
Airline doubles its fleet as domestic operations continue to grow
ATR today announces the sale of two ATR 72-500 aircraft from its asset management portfolio to Hi Air. With this purchase, the South Korean start-up, which began operations in December 2019 will increase its ATR fleet to four. The two additional aircraft will be delivered in August and October. Supported by the superior economics and versatility of the ATR 72, which burns 40% less fuel and emits 40% less CO2 than a comparable regional jet, the airline is already ready to grow its fleet and expand the number of routes it offers. This summer, Hi Air will launch services on five domestic routes, including to the popular tourist destination of Jeju Island. ATR aircraft are proven route openers, having opened 164 routes globally in 2019.
Hi Air’s capacity for growth at this time also illustrates the resilience of the regional aviation market which is likely to make a faster recovery, with domestic short haul routes proving to be the first to resume as countries around the world begin to lift lockdown restrictions. The airline continued to serve passengers during the Covid pandemic, ensuring connectivity to Korean communities. Regional aviation will continue to play an important role for communities and economies worldwide, ensuring vital access for families, businesses and essential supplies – supporting the economic recovery in a Post-Covid19 world.
HyungKwan Youn, Chief Executive Officer of Hi Air remarked: “Selecting the ATR 72 to begin operations has been important for Hi Air’s early success. Launching an airline is hugely challenging. To be successful, new airlines need an aircraft that is efficient, reliable and offers passengers a good in-flight experience. To be in a position already to expand our operations is because the ATR fulfills these criteria. At Hi Air, we believe that increasing regional connectivity in Korea will benefit passengers, communities and businesses and we look forward to continuing this mission with the support of ATR.”
ATR Senior Vice President Commercial, Fabrice Vautier, said: “Regional connectivity is more vital than ever and this is why the regional aviation segment will be resilient. In many countries, we are already seeing that domestic and regional routes are the first to return and in the case of Hi Air they continued to fly. Businesses, governments and people around the world are looking for solutions to this crisis and regional aviation has a key role to play. Our ATR aircraft have the right blend of economics and operational versatility to support airlines. Furthermore, with their advantage in fuel burn and CO2 emissions, they are the perfect solution to help aviation emerge from this global recovery as a more sustainable industry.”
KiwiRail is taking the next step to procure a new generation of Cook Strait ferries which will increase the capacity on this vital transport link, and increase its resilience.
A Request for Proposal (RFP) to find a preferred shipyard to build two new ships for the Interislander is being issued today, the next step in the procurement process.
“The new ships will strengthen and enhance the vital transport link between the North and South Islands and represent a once-in-a-generation opportunity to transform the Cook Strait crossing,” Group Chief Executive Greg Miller says. The ferries are extensions of State Highway 1 and the Main Trunk Line across Cook Strait, linking road and rail networks between the two islands.
Currently, Interislander operates a fleet of three ferries, moving some 800,000 passengers and up to $14 billion worth of road and rail freight between the North and South Islands each year.
The $400 million contribution in Budget 2020 has enabled KiwiRail to go out to international tender to build the new ships, which are intended to arrive for service in 2024 and 2025. When the ferries are delivered, it will be over 25 years since New Zealand last introduced a brand-new purpose-built ferry to its fleet.
The $400 million towards the ferries and KiwiRail’s infrastructure at the ports in Wellington and Picton builds upon a $35 million-dollar investment in last year’s Budget for ferry design and procurement work.
The two new ferries will be technologically advanced, have significantly lower emissions, a greater carrying capacity – including rail wagons – and provide an enhanced visitor experience, Mr Miller says.
“On behalf of New Zealanders, we are grateful to the Government for enabling this acquisition,” says Mr Miller. “It is exciting to issue this RFP, to move the project forward and to find a shipyard to partner with KiwiRail to deliver the ships to our specifications, quality and timeline requirements.”
“Only overseas shipyards have the ability to build ferries of the size and standard needed for the Cook Strait. However, the project also involves new infrastructure including terminals, linkspans, and marshalling yards which will create numerous Kiwi jobs in Picton and Wellington. Community engagement has already begun in Picton for the proposed new terminal there.
“We are engaging our Interislander staff in the design of the ferries to ensure the ships are not only great for passengers, but also for those who work on them.
“Our new ferries and the associated port infrastructure will provide greater resilience for this crucial link that unites our country and will serve New Zealand for the next generation and beyond.”
SEOUL (Reuters) – South Korea’s largest airline, Korean Air, plans to sell around 1 trillion won ($816.55 million) in new shares in its biggest rights issue in 20 years to raise funds amid mounting strains in the industry due to the pandemic.
Korean Air is the latest carrier to raise funds as travel restrictions imposed by governments around the world have led to airlines grounding their fleets worldwide.
Korean Air separately plans to receive 1.2 trillion won in support from South Korean state-owned banks.
About 79 million newly issued shares, to be listed on July 29, will be first bought by the carrier’s shareholders, including holding company Hanjin Kal which has a 30% stake in the carrier, followed by general public, the company said in a statement.
“Korean Air will continue to carry out self-rescue measures to overcome the dismal business environment due to COVID-19,” the company said.
Korean Air had 70% or more of its employees working in South Korea take a six-month leave of absence in April. Woo Kee-hong, the airline’s president, warned in March that the coronavirus outbreak could threaten its survival if the situation becomes prolonged.
Korean Air also picked last month a preferred bidder to buy its real estate and non-core assets, which some analysts value at about 400-500 billion won.
Korean Air had a debt-to-equity ratio of about 870% as of end-2019. It is expected to announce January-March quarter earnings later this week.
A spokeswoman for Korean Air said it was operating just 10% of its previously planned international schedule, and 60% of its domestic schedule.
The airline said it expects its June international schedule to rise to 20% of its previous plan, as it announced the addition of more international passenger flights to prepare for increased travel demand once COVID-19 restrictions are relaxed.
United Airlines Holdings Inc said earlier this month it plans to raise $2.25 billion through a bond offering, after announcing a public offering to raise more than $1 billion in April.
In March, Singapore Airlines said it would issue S$5.3 billion ($3.70 billion) in new equity and up to S$9.7 billion($6.78 billion) via mandatory convertible bonds in a rights issue backed by state investor Temasek Holdings.
($1 = 1,224.6700 won)
(Reporting by Joyce Lee; Editing by Simon Cameron-Moore and Louise Heavens)
Korean Air’s passenger planes are parked following outbreak of COVID-19, at Incheon International Airport
Air New Zealand will fly its 787-9 Dreamliner aircraft between Christchurch and Auckland three times a week to help transport cargo from the South Island to the rest of the world.
Air New Zealand General Manager Cargo Rick Nelson says these services are being launched in response to significant demand from the South Island freight forwarding and export communities.
The first flight will depart from Christchurch tomorrow night as part of a support agreement with the Ministry of Transport. The agreement sees the Dreamliner fly Christchurch to Auckland on Tuesdays, Thursdays and Saturdays, departing Christchurch at 5pm and arriving in Auckland at 6:25pm so that cargo can then be airfreighted to other global destinations.
“Flights are timed so cargo goods are able to connect to our new Los Angeles, San Francisco, Hong Kong, Narita and Shanghai cargo flights, as well as onto our trans-Tasman flights from Auckland.
“As the nation emerges from lockdown, it’s critical our exporters in the South Island are well supported in order for them to remain viable. These Dreamliner services from Christchurch will allow exporters with high value, perishable and time sensitive goods access to a same day air cargo link into international services departing from Auckland.”
Passengers will also be able to book return flights on the Dreamliner services between Christchurch and Auckland.
SEOUL, April 2 (Reuters) – South Korean budget airline Eastar Jet plans to lay off about 700 out of some 1,600 employees due to operational difficulties from the coronavirus outbreak, the carrier’s spokesman said on Thursday.
The spokesman declined comment on whether it was temporary layoffs, saying that he did not have the details.
The budget carrier is also in talks to reduce its fleet, currently consisting of 21 Boeing 737-800s, by 10 planes, the spokesman said.
(Reporting by Joyce Lee; Editing by Christian Schmollinger)
LONDON, March 31 (Reuters) – British Airways said it is temporarily suspending flights from Gatwick Airport in southern England, Britain’s second busiest airport, due to the coronavirus.
BA’s boss warned earlier in March that the airline was in a battle for survival and would have to cut jobs and park planes.
“Due to the considerable restrictions and challenging market environment, like many other airlines, we will temporarily suspend our flying schedule at Gatwick,” a BA spokesman said.
BA said it will contact affected customers. The airline continues to operate some flights from its main hub at Heathrow.
Parent company IAG said flying capacity would be down 75% in April and May.
Rival airline easyJet said on Monday that it had grounded its entire fleet.
Gatwick Airport said last week it would shut one of its two terminals on Wednesday.
The U.S. Navy awarded Boeing [NYSE: BA] a $1.5 billion production contract for the next 18 P-8A Poseidon aircraft. The contract includes eight aircraft for the U.S. Navy, six aircraft for the Republic of Korea Navy and four aircraft for the Royal New Zealand Air Force.
The Republic of Korea Navy and Royal New Zealand Air Force acquired the aircraft through the Foreign Military Sales process and will receive the same P-8A Poseidon variant designed and produced for the U.S. Navy. The Royal New Zealand Air Force is expected to begin receiving aircraft in 2022 and the Republic of Korea Navy is expected to begin receiving aircraft in 2023.
The P-8 is a proven long-range multi-mission maritime patrol aircraft capable of broad-area, maritime and littoral operations. A military derivative of the Boeing 737 Next-Generation airplane, the P-8 combines superior performance and reliability with an advanced mission system that ensures maximum interoperability in the battle space.
The P-8 is militarized with maritime weapons, a modern open mission system architecture and commercial-like support for affordability. The aircraft is modified to include a bomb bay and pylons for weapons. It has two weapons stations on each wing and can carry 129 sonobuoys. The aircraft is also fitted with an in-flight refueling system.
With more than 254,000 flight hours to date, the P-8A Poseidon and P-8I variants patrol the globe performing anti-submarine and anti-surface warfare; intelligence, surveillance and reconnaissance; humanitarian; and search and rescue missions.
