SHANGHAI (Reuters) – China Southern Airlines will carry out an equity diversification plan that will involve the injection of 30 billion yuan ($4.36 billion) of capital from three investors, the firm announced on Saturday.
The Guangdong Hengjian Investment Holding Corporation, the Guangzhou Urban Construction Investment Group and the Shenzhen Penghang Equity Investment Fund will each inject 10 billion yuan into the airline, as part of the country’s efforts to diversify ownership structures among state-owned firms.
The move will significantly improve the company’s debt-to-asset ratio, generate funds for its growth and help modernize its decision-making mechanisms, the announcement said.
It will also use the funds to serve its main air transportation business, pay for construction related to China’s Belt and Road Initiative and support aviation development in cities in the southern province of Guangdong.
China Southern is one of 96 enterprises owned and administered directly by the central government. Its profits slumped nearly 50% last year as a result of rising fuel costs and a weak yuan currency.
(Reporting by David Stanway; Editing by Himani Sarkar)
LONDON (Reuters) – Jaguar Land Rover (TAMO.NS) is making a multi-million pound investment to build electric vehicles in Britain, in a major boost for the UK government and a sector hit by the slump in diesel sales and Brexit uncertainty.
Britain’s biggest car company, which built 30 percent of the UK’s 1.5 million cars last year, will make a range of electrified vehicles at its Castle Bromwich plant in central England, beginning with its luxury sedan, the XJ.
“The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK,” Chief Executive Ralf Speth said on Friday.
The announcement gives a boost to Britain’s automotive sector hit this year by Honda and Ford’s (F.N) plans to close factories.
Jaguar Land Rover (JLR) has highlighted the dangers of a no-deal Brexit and the need to maintain frictionless trade with the European Union, echoing warnings from the industry that just-in-time production could be hit by customs delays and additional bureaucracy.
But it has signed a deal with workers at the Castle Bromwich factory to go from a five-day to a four-day working week with the same amount of hours which should allow the plant to operate more efficiently.
Three of JLR’s four European car plants are in Britain, giving it limited capacity elsewhere on the continent.
The other, in Slovakia, only opened last year and is still being ramped up with other models allocated there.
“We are making this investment because the ongoing Brexit uncertainty has left us with no choice, we had to act, for our employees and our business,” JLR said.
“We are committed to the UK as our home and will fight to stay here but we need the right deal.”
Both candidates to replace Prime Minister Theresa May, Boris Johnson and Jeremy Hunt, have both said they are prepared to take Britain out of the EU on Oct. 31 without a deal, although it is not their preferred option.
Brexiteers have argued that the EU’s biggest economy Germany, which exports hundreds of thousands of cars to Britain ever year, would do its utmost to protect that trade
Friday’s announcement comes after a turbulent few months for Jaguar which announced around 4,500 job cuts earlier in January and posted a 3.66 billion pound ($4.5 billion) loss in 2018/19.
The carmaker is undergoing a turnaround designed to offer an electrified option to all of its new models from 2020 as it seeks to move away from its reliance on diesel vehicles which are being increasingly shunned by buyers.
Jaguar also called on the government to bring giga-scale battery production to the country so that Britain is not left behind in the rush to produce low and zero-emissions vehicles and technology.
Britain’s business minister Greg Clark said the government was doing all it can to meet that goal.
“We are determined to realize that ambition,” he said.
($1 = 0.7952 pounds)
Reporting by Costas Pitas; editing by Michael Holden and Jane Merriman
FILE PHOTO – A car hangs on the wall of Jaguar’s Castle Bromwich manufacturing facility in Birmingham, Britain, November 17, 2016. REUTERS/Darren Staples
(Bloomberg) — Qatar has made agreements with U.S. companies to spend billions on airplanes and jet engines and to develop a petrochemical complex, the White House said on Tuesday.
At least some of the deals were previously made but were publicly touted by the Trump administration Tuesday. Among them: Qatar Airways purchasing Boeing Co. 777 freighters and large-cabin aircraft from Gulfstream Aerospace, the private jet unit of General Dynamics Corp.
“They’re investing very heavily in our country,” Trump told reporters at the White House. “They’re creating a lot of jobs. They’re buying tremendous amounts of military equipment including planes.
Qatar’s defense ministry committed to acquire Raytheon Co.’s NASM and Patriot Systems, according to the White House. In addition, a unit of Chevron Corp. entered into an agreement with Qatar Petroleum for the development, construction and operation of a petrochemicals complex in Qatar.
The agreements, whose total cost wasn’t disclosed by the White House, were announced during a visit to the White House by the emir of Qatar, Sheikh Tamim Bin Hamad Al Thani.
The deals come amid a two-year economic blockade of Qatar led by U.S. ally Saudi Arabia and supported by nations including Egypt and the United Arab Emirates. Trump initially appeared to support the Saudi move — echoing its assertions that Qatar supported terrorists — even though it put the U.S. in an awkward position because it has a major military base in Qatar.
But Qatar has looked to improve relations in the U.S., with the emir saying the country was committed to doubling the economic partnership between the two countries. Mansoor bin Ebrahim Al Mahmoud, who leads the Qatar Investment Authority, said earlier this year that the country’s sovereign wealth fund will look to increase its U.S. investment portfolio from around $30 billion to about $45 billion over the next two years.
The country has also made significant gestures toward increasing its spending on U.S. defense contractors, with the U.S. approving a large weapons systems purchase ahead of Sheikh Tamim’s last visit to the country. In 2017, the country signed a deal to spend $12 billion for the purchase of 36 F-15QA fighter jets.
And the U.S. has announced plans to expand and renovate the al-Udeid Air Base near Doha, which houses the forward headquarters of the U.S. military’s Central Command and some 10,000 American troops. During a dinner with the leaders on Monday, Trump thanked Sheikh Tamim for Qatar’s $1.8 billion investment in the project which will be used to construct housing and entertainment facilities.
Several companies have released specifics of some of the agreements that were formalized on Tuesday.
Gulfstream said its deal is for $1 billion in corporate jets that General Dynamics announced in January without giving the customer’s name. Boeing said last month it made a deal to sell five 777 freighters at a list price of $1.8 billion.
Qatar Airways plans to use General Electric Co. jet engines for Boeing 787 and 777 aircraft, according to the White House.
A Chevron statement Tuesday said the company was signing a new agreement at the White House for a previously unannounced $8 billion U.S. Gulf Coast project. The White House statement mentions only a prior deal, announced last month, in which the company would join forces with Qatar Petroleum to build a facility in Qatar.
(Story by Justin Sink and Thomas Black, Edited by Alex Wayne, Justin Blum, and Larry Liebert)
Delta is launching its state-of-the-art Airbus A220 aircraft on new flights between New York’s JFK International Airport and Houston’s Bush Intercontinental Airport this October, with customers enjoying best-in-class service on two daily flights connecting two of the largest business markets in the U.S.
“Our new twice-daily flight to Houston on the finest narrowbody experience in the skies today marks another step in Delta’s ongoing investment to provide New York customers with the broadest network, most comfortable experience, and best products available,” said Chuck Imhof, V.P. — New York and Sales-East.
For Houston customers connecting through JFK, the new service will provide one-stop access to international destinations such as Lagos, Nigeria; Dakar, Senegal; Accra, Ghana; and Tel Aviv, Israel.
Service will begin on Oct. 27, 2019, and will operate on the following schedule:
IAH
Departs IAH at 11:58 a.m. and arrives JFK at 4:22 p.m.
Departs IAH at 6:22 p.m. and arrives JFK at 10:45 p.m.
JFK
Departs JFK at 8:00 a.m. and arrives IAH at 11:19 a.m.
Departs JFK at 2:55 p.m. and arrives IAH at 6:14 p.m.
Delta has grown its presence in New York City by over 65 percent in the last 10 years and today operates more than 520 peak-day departures from its hubs at LaGuardia and JFK. The airline is JFK’s No. 1 carrier, offering more than 240 peak daily departures to nearly 100 worldwide destinations. The airline first unveiled its $1.4 billion, state-of-the-art international gateway at JFK’s Terminal 4 in 2013. Delta also continues to make significant investments to provide more consistency, comfort and convenience in the travel experience throughout all cabins of service on its flights to and from New York.
Service to Houston from JFK complements the five daily flights Delta currently offers between Houston and Delta’s other New York hub at LaGuardia. Those flights also are operated on the A220, which features a modern and spacious interior, and an elevated, customer-friendly onboard experience including:
Thoughtful innovations like high-capacity overhead bins, extra-large windows and full-spectrum LED ambient lighting.
The widest Main Cabin seats in Delta’s entire fleet in a two-by-three layout, with personal power ports and complimentary premium entertainment on individual seat-back screens.
A new First Class seat design in a two-by-two layout, featuring the largest IFE screens of any Delta domestic First Class seat.
Delta’s A220 debuted in February to rave reviews; Business Insider called the A220 “an absolute triumph.” The airline plans to add a total of 95 A220s to its aircraft fleet over the next four years.
Delta Air Lines’ brand new A220 jet lands at Hartsfield-Jackson International Airport in Atlanta, Ga. on Tuesday, December 18, 2018. (Photo by Chris Rank/Rank Studios 2018)
July 1 (Reuters) – Lucid Motors said on Monday it hired Tesla Inc’s former vice president of production at its Freemont factory, Peter Hochholdinger, as vice president of manufacturing.
The Newark, California-based electric carmaker in April also named Peter Rawlinson, former chief engineer of Tesla’s Model S, as its chief executive officer.
Lucid, which has more than $1 billion investment from Saudi Arabia’s Public Investment Fund, was founded in 2007 as Atieva by Sam Weng and Bernard Tse, a former vice president of Tesla.
The company positions itself as being less of a direct competitor to Tesla than with luxury car makers such as Audi or BMW, Rawlinson had said.
Hochholdinger, a former production executive at Volkswagen AG, left Tesla last week after three years with the company. At Tesla, he was tasked with improving production for Tesla’s luxury Model S sedan and Model X sport utility vehicle as well as helping build a cost-effective manufacturing program for the Model 3 sedan.
He was the latest high-profile executive to leave Tesla in the past two years, as the automaker struggles to ramp up production of Model 3, which is seen as crucial for its long-term profitability.
Rawlinson said Hochholdinger’s experience in manufacturing would help the company in launching Lucid Air and other future models.
Tesla is expected to report its second-quarter delivery and production numbers this week.
(Reporting by Vibhuti Sharma in Bengaluru; Editing by James Emmanuel)
Upgraded Boeing 767-400s will have new Delta One business class seat.
Delta Premium Select also expands to more markets.
Delta Air Lines will offer improved cabin experiences for customers starting this fall through the launch of its new business class seat offering more comfort and privacy, plus the expansion of its international premium economy cabin, Delta Premium Select to new markets in Europe and South America.
The new cabins will be fitted on the 767-400 fleet and bring all four branded seat products – Delta One, Delta Premium Select, Delta Comfort+ and Main Cabin – to this aircraft for the first time. The aircraft have initially been scheduled on select flights between Atlanta and London Heathrow starting November 12, 2019, followed by a number of additional European and South American markets. Select flights to London, Zurich and Brussels on this aircraft will be available for purchase starting this weekend with additional markets for sale in the coming weeks.
Here is a full overview of the markets the new 767-400 aircraft will fly:
Route (airport code)
Effective Dates
Atlanta (ATL) – London Heathrow (LHR)
Nov. 12
New York-JFK (JFK) – London Heathrow (LHR)
Nov. 16
Boston (BOS) – London Heathrow (LHR)
Nov. 20
New York-JFK (JFK) – Zurich (ZRH)
Dec. 8
New York-JFK (JFK) – Brussels (BRU)
Jan. 30
Atlanta (ATL) – Brussels (BRU)
Feb. 22
New York-JFK (JFK) – São Paulo (GRU)
2Q 2020
Detroit (DTW) – London Heathrow (LHR)
2Q 2020
Minneapolis (MSP) – London Heathrow (LHR)
2Q 2020
Portland (PDX) – London Heathrow (LHR)
2Q 2020
Atlanta (ATL) – Munich (MUC)
2Q 2020
New York-JFK (JFK) – Nice
2Q 2020
Atlanta (ATL) – Zurich (ZRH)
2Q 2020
Atlanta (ATL) – Buenos Aires (EZE)
2Q 2020
”Our investments in our Boeing 767-400 fleet reflect our continuous effort to elevate each aspect of the international customer experience,” said Steve Sear, Delta’s President — International and E.V.P. — Global Sales. “We understand that our customers want to curate their own travel experience and offering four cabins allows for more choice while continuing to align our products across the Delta fleet.”
Delta is investing millions of dollars in its widebody long-haul fleet to give customers greater choice when they travel. The 767-400 refit follows the introduction of the Delta One suite and Delta Premium Select on its Airbus A330-900neo, Airbus A350-900 and Boeing 777-200 aircraft.
Here are some more details on Delta’s new cabins:
Delta One
The cabin will feature a new seat customized for this aircraft, which offers extra privacy through high sides and a divider between the two middle seats in the 1-2-1 configuration. There will be 34 seats in total.
The memory foam-cushion seats will also feature personal stowage areas, customizable ambient lighting and 18″ wide, high-resolution in-flight entertainment screens.
New self-service area for customers to enjoy snacks and beverages at their leisure throughout the flight.
Delta Premium Select
Delta’s premium economy cabin, Delta Premium Select, will have 20 seats in a 2x2x2 configuration.
It is a separate cabin between Delta One and Main Cabin, offering customers dedicated service, plated meals on Alessi serviceware, TUMI branded amenity kits, and LSTN noise-canceling headsets.
Seats, with memory foam cushions, will be 19″ wide with up to 38″ pitch and 7″ recline. The seats will also feature an adjustable leg rest and footrest, along with a larger IFE 13.3″ screen than found in Comfort+ and Main Cabin.
Delta Comfort+ and Main Cabin
New, wider seats with memory foam cushions and adjustable headrests for improved comfort on long-haul flights.
10.1” seatback screens to enjoy the 1,000+ hours of entertainment available on-demand via Delta Studio.
Furthermore, the aircraft will also be fitted with Delta’s own in-flight entertainment system created by Delta Flight Products. The first-of-its-kind system combines wireless technology with state-of-the-art tablet displays mounted into the back of the seat. The system debuted on Delta’s A220 fleet and is also rolling out on the new A330-900neo fleet before coming to the 767-400 aircraft as part of the interior refit.
In addition to the expected customer experience and cost benefits, wireless IFE also helps reduce the airline’s environmental impact. The wireless streaming technology enables the reduction of about one pound of wiring per seat when installed on an aircraft. This means Delta’s modified 767-400 fleet will save about 1,330 metric tons of carbon emissions annually.
Visit the Delta link below for a video presentation of the new cabin layouts!
Korean Air joint venture provides a strong platform for Delta growth, world-class customer benefits and revenue generation across one of the most comprehensive route networks in the trans-Pacific.
Delta has acquired a 4.3 percent equity stake in Hanjin-KAL.
Delta has acquired a 4.3 percent equity stake in Hanjin-KAL, the largest shareholder of Korean Air. The investment demonstrates Delta’s commitment to the success of its joint venture with Korean Air and the customer benefits, market positioning and growth opportunities the partnership enables. Delta intends to increase its equity stake to 10 percent over time, after receiving regulatory approval.
“Together with the team at Korean Air, we have a vision to deliver the world’s leading trans-Pacific joint venture for our shared customers, offering the strongest network, the best service and the finest experience connecting the U.S. with Asia,” said Delta CEO Ed Bastian. “This is already one of our fastest-integrating and most successful partnerships, and experience tells us this investment will further strengthen our relationship as we continue to build on the value of the joint venture.”
Delta and Korean Air operate the industry’s most robust trans-Pacific joint venture, providing customers with seamless access to more than 290 destinations in the U.S. and over 80 destinations in Asia, including the partnership’s award-winning hub at Seoul-Incheon (ICN).
Since launching in May 2018, Delta and Korean Air have strengthened cooperation by expanding joint operations in the trans-Pacific to include more than 1,400 codeshare flights, including connections throughout Asia and the U.S. Teams at both airlines have also worked closely together to provide the best travel experience for customers between the U.S. and Asia, integrate sales and marketing activities, and enhance loyalty program benefits, such as the ability to earn more miles on both loyalty programs and redeem them on a wider range of flights. Additionally, Korean Air and Delta have launched cargo cooperation across one of the most comprehensive route networks in the trans-Pacific market.
The partnership is contributing to Delta’s first year-over-year growth in the Asia Pacific region since 2012, with new service launched earlier this year between Minneapolis/St. Paul and Seoul, as well as Seattle and Osaka, operated in partnership with Korean Air. Additionally, Korean Air has launched new service linking Boston with Seoul.
The joint venture builds on nearly two decades of close partnership between Korean Air and Delta, both founding members of the SkyTeam airline alliance.
Delta is growing its international footprint and leveraging partnerships with key airlines in regions around the world, including through joint ventures and equity investments. These investments improve alignment between Delta and its partners, creating a more stable environment for growth amid an increasingly dynamic global landscape.
DUBAI (Reuters) – Emirates will “work smart and hard” to improve its performance after the Gulf airline’s profit hit a decade low as soaring fuel costs and a strong dollar took a toll on earnings, while passenger growth stalled.
After years of growth, during which it has become one of the world’s biggest airlines as other long-established national carriers have struggled, Dubai-based, state-owned Emirates warned last week profit would be lower than previous years.
It revealed just how badly it had fared on Thursday, reporting a 69 percent fall in net profit to 871 million dirhams ($237 million) in the year to March 31.
Meanwhile, the number of passengers flying Emirates rose 0.2 percent to 58.6 million, its weakest growth rate in at least 15 years, while cargo increased 1.4 percent to 2.7 million tonnes.
Chairman Sheikh Ahmed bin Saeed al-Maktoum said in a statement that the year had been “tough”, with higher oil prices, a strong dollar and stiffer competition, adding “our performance was not as strong as we would have liked”.
While revenue at the airline rose 6 percent to 97.9 billion dirhams, its profit fell to its lowest level since 2009. And profit at Emirates Group, which includes other units, fell 43.7 percent to 2.3 billions dirhams, its lowest since 2012.
Despite the profit fall, Emirates said it will pay the Investment Corporation of Dubai a dividend of 500 million dirhams for the year.
“SMART AND HARD”
Sheikh Ahmed said it was difficult to predict the year ahead but Emirates would “work smart and hard to tackle the challenges and take advantage of the opportunities.”
Unfavorable currency moves in key markets cost Emirates $156 million, while operating costs rose 8 percent with the airline recording its biggest ever fuel bill of 30.8 billion dirhams.
Emirates filled an average of 76.8 percent of passenger seats, slightly lower than the previous year, while increasing the number of available seats by 4 percent.
Fare increases helped Emirates register a 3 percent increase in passenger margin, despite it filling fewer seats.
The number of airline employees fell by 2,074, or 3.3 percent. Overall group workforce rose 1.9 percent to 105,286.
Emirates agreed with Airbus in February to cancel dozens of A380 orders and buy smaller A350’s and A330’s as the planemaker scrapped production of the world’s largest passenger jet.
Emirates, which will take 14 more A380’s between this year and the end of 2021, is developing a new route network for a fleet that will include smaller aircraft, it said last week.
Reporting by Alexander Cornwell; Editing by Kirsten Donovan and Alexander Smith
FILE PHOTO: Emirates Airline Boeing 777-300ER planes are seen at Dubai International Airport in Dubai, United Arab Emirates February 15, 2019. REUTERS/Christopher Pike/File Photo
WILMINGTON, Ohio (AP) – Air Transport Services Group Inc. (ATSG) on Tuesday reported first-quarter profit of $22.7 million.
The Wilmington, Ohio-based company said it had profit of 25 cents per share. Earnings, adjusted for one-time gains and costs, were 37 cents per share.
The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 28 cents per share.
The air cargo company posted revenue of $348.2 million in the period, which also beat Street forecasts. Three analysts surveyed by Zacks expected $306 million.
Air Transport Services shares have fallen nearly 4% since the beginning of the year. The stock has increased nearly 7% in the last 12 months.
One of the trends sweeping through the gaming industry over the past decade is selling real estate to real estate investment trusts (REITs). Sometimes companies control their REITs, like MGMResorts (NYSE: MGM) does with MGM Growth Properties (NYSE: MGP) and CaesarsEntertainment (NASDAQ: CZR) does with VIVI Properties(NYSE: VICI), and sometimes real estate is sold to third-party companies.
REITs free up cash for casino companies, often to the tune of billions of dollars. That money can help reduce debt or fund growth projects, which is attractive because it doesn’t fundamentally change a resort’s operations. But Wynn Resorts (NASDAQ: WYNN) has avoided the temptation to sell most of its real estate over the years. If it did, however, the company could free up billions of dollars in cash.
Wynn’s Encore Boston Harbor.
Image source: Wynn Resorts.
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