LONDON (Reuters) – U.S. buyout fund Warburg Pincus said on Monday that it had clinched a deal to sell its European airline services firm Accelya to rival private equity fund Vista Equity Partners for an undisclosed amount.
The deal, which was first reported by Reuters, allows Warburg Pincus to fully cash out after backing the Barcelona-based company for the past two years.
The U.S. investment firm launched an auction process during the summer to find a new owner for the business which serves more than 200 airlines including British Airways, Lufthansa and EasyJet.
Warburg Pincus bought Accelya from French private equity firm Chequers Capital in 2017 and quickly tripled its revenues by merging it with Mercator, a Dubai-based travel services group in which the U.S. buyout firm had been an investor since 2014.
Vista Partners, whose portfolio is mostly focused on software companies, was recently vying to buy a majority stake in WPP’s (WPP) data analytics firm Kantar but lost it to Bain Capital.
Its Chief Executive Robert Smith said Accelya was “at the forefront of innovation and positioned to shape the airline and travel industry for decades to come.”
Accelya employs 2,500 employees across 24 offices in 14 countries and recently signed a long-term deal as the International Air Transport Association’s (IATA) technology partner.
Bank of America (BAC) and Evercore advised Warburg Pincus on the deal while Vista hired Goldman Sachs (GS) and Houlihan Lokey to work on the purchase.
Law firm Kirkland & Ellis and Simpson Thacher served as the legal advisors to Warburg Pincus and Vista, respectively.
Reporting by Pamela Barbaglia; Editing by Susan Fenton
LOS ANGELES (Reuters) – Amazon.com Inc <AMZN> Chief Executive Jeff Bezos has plans to slash greenhouse gas emissions from the online retailer’s delivery operations.
Yet the company’s use of airplanes – the most climate-damaging mode of transportation – is on the rise, according to data provided to Reuters.
Amazon Air’s U.S. volume has risen steadily since its 2016 launch, according to an analysis of Department of Transportation data by Cargo Facts Consulting https://www.cargofactsconsulting.com, a Luxembourg-based advisory firm with a global staff and more than four decades of history.
It crunched data from Air Transport Services Group Inc <ATSG> and Atlas Air Worldwide Holdings <AAWW>. Both supply planes and pilots for Amazon Air.
In July, Amazon Air flew 136 million lbs of goods in the United States, according to the data. That was up 29% from the year earlier and just 9 million lbs short of December 2018, when the peak holiday shipping season was in full swing.
For a graphic on more Amazon Air flights, click the link below:
Bezos has said Amazon will cut its use of airplanes as it builds more local warehouses and fills them with goods that it can deliver to customer doorsteps in one day, or even one hour.
But for the time being, Amazon’s air shipments are climbing as it speeds up deliveries to lure customers and pressure rivals like Walmart Inc <WMT> and Target Corp <TGT>.
In April, Amazon started offering no-minimum purchase, one-day free shipping to members of its Prime subscription service.
In the latest quarter, it saw delivery costs soar, and warned the holiday quarter would see costs for one-day shipping alone spike to $1.5 billion.
The Seattle e-retailer, which sends 10 billion packages a year, declined to say what percentage of its shipments travel by plane or give specific examples of how the latest drive to shave time off its standard two-day shipping affected air transport.
Last month, Amazon said its CO2 emissions in 2018 were 44.4 million metric tons and set a goal to be net carbon neutral by 2040.
“We expect the percent of total shipments to customers utilizing air transportation to reduce from year to year as we significantly increase one and same day shipments,” Amazon spokesman Sam Kennedy said, when asked about Cargo Facts’ data.
DELIVERY WARS
A standard package flown on a plane in the United States creates an estimated 6-10 times more CO2 emissions than one traveling by truck, said Jacques Leonardi, a senior research fellow in freight, logistics and sustainable distribution at the University of Westminster in London.
Amazon Air leases 47 planes and is expected have 50 by the end of the year. It operates roughly 110 daily flights in the United States and around 20 per day in Europe, according to Cargo Facts.
In June, shortly after FedEx Corp <FDX> said its planes would stop shuttling packages for the online retailer, Amazon Air announced plans to have 70 planes on lease by 2021.
But Amazon says it is getting closer to customers with an expanding network of well-stocked warehouses. Those local fulfillment centers underpin the company’s one-day and same-day delivery services.
In a news release issued Monday, Amazon said those options were “better for the planet” because there aren’t many miles in the trip to customer doorsteps.
Because those time windows are so tight, “you are eliminating the possibility of air transportation,” Amazon’s Bezos said in September. “Even though it’s counterintuitive, the fact of the matter is that shorter delivery times end up being less carbon-intensive than longer delivery times.”
Products from most of Amazon’s 158 U.S. distribution centers can be shipped to 65% of the population in one day, said Marc Wulfraat, president of supply chain consultancy MWPVL International.
Items like footwear, jewelry, auto parts and niche electronics come from 23 distribution centers that span the country – and will likely need to be moved by air for next-day delivery, Wulfraat said.
Amazon also depends on United Parcel Service Inc <UPS> for air shipments. The Atlanta-based delivery company has seen a bump in that business since Amazon began expanding free one-day delivery this spring, UPS executives and analysts said.
Domestic next day air volume at UPS surged more than 30% in the second quarter and was up nearly 24% in the third quarter – fueled by faster e-commerce shipping speeds and rival FedEx’s breakup with Amazon this summer.
“It’s not all from FedEx,” said Satish Jindel, the founder of logistics advisory firm ShipMatrix, noting that express and deferred air services revenue at UPS surged $852 million in the second and third quarters.
Amazon’s business was worth about $900 million to FedEx prior to their split, Jindel said. Express, which includes air shipments, accounted for roughly $540 million of that, he said.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Mark Potter)
INNOVIA APM vehicles carry twelve million passengers annually at Frankfurt am Main Airport – with almost 100 percent reliability
The system’s 25-year anniversary corresponds with Fraport’s opening of Terminal 2
Bombardier’s Frankfurt team celebrating the 25th anniversary of successfully operating and maintaining the INNOVIA APM fleet at Frankfurt Airport.
Today, global mobility solution provider Bombardier Transportation celebrates 25 years of fully automatic BOMBARDIER INNOVIA APM 100 people mover system’s operation at Frankfurt am Main Airport. The system and Fraport’s Terminal 2 opened on the same day 25 years ago. Since 1994, Germany’s first elevated passenger transport system called the SkyLine, has connected Terminals 1 and 2. With an average reliability of 99.83 percent, twelve million passengers and guests per year safely and comfortably arrive at their destinations in the terminals – around the clock.
“We’d like to congratulate our customer on this quarter century anniversary. We have a very successful and long-standing partnership with Fraport, which marks our joint success in moving millions of travelers between terminals at the Frankfurt Airport,” said Michael Fohrer, Head of Bombardier Transportation Germany.
“Fraport benefits from a high-performing turnkey transit system, which was not only manufactured by Bombardier, but also operated and maintained. I am grateful to all our committed and competent employees, without them this milestone would not have been possible,” emphasized Alexander Ketterl, Head of Sales and Delivery German cities at Bombardier Transportation.
Volker Maul, Head of the Bombardier team at Frankfurt Airport, can look back on the people mover system’s 25 years of service. “The excellent cooperation within our team and with our customer built the foundation for the system’s near 100 percent reliability. Bombardier’s operations and maintenance program is carefully designed to optimize system performance and ensure potential problems are identified and resolved before the service’s efficiency is compromised,” he explained.
Fraport’s fleet of 18 INNOVIA vehicles transport around thirty-five thousand passengers daily, on the 3.8 km route between departure terminals. During peak times, the trains depart every 90 seconds with each wagon carrying up to 60 passengers and their luggage.
In 1994, Fraport was the first German customer to invest in Bombardier’s driverless system, installed with the proven BOMBARDIER CITYFLO 550 signaling system. CITYFLO delivers the highest levels of safety while meeting customer demand for flexible, high-performance and cost-effective solutions.More than 30 Bombardier people mover systems are in successful operation worldwide, including urban areas such as Guangzhou and airports in London, Rome, Madrid, Phoenix, Dubai and Tampa among other cities.
United to debut exciting Star Wars: The Rise of Skywalker- themed content, including new aircraft paint design, safety video and opportunities to experience the Star Wars saga
CHICAGO, Oct. 25, 2019 /PRNewswire/ — United Airlines today announced that the carrier has teamed up with Star Wars: The Rise of Skywalker – the epic conclusion of the Skywalker saga, to offer customers and employees alike exciting opportunities in the coming weeks to experience the Star Wars saga first-hand on the ground, in the air and throughout the airline’s galaxy.
Customers will begin flying the friendly galaxy in November when United officially unveils an all-new Star Wars-themed paint design on one of its Boeing 737-800 aircraft with a re-designed onboard experience to celebrate the movie. The airline will also offer Star Wars: The Rise of Skywalker-themed amenity kits and launch its latest inflight safety demonstration video featuring characters from the new film. In addition, the airline will provide once-in-a-lifetime opportunities for MileagePlus members – including access to attend the US premiere of Star Wars: The Rise of Skywalker – through MileagePlus Exclusives, the airline’s platform that lets MileagePlus members use miles to bid and buy exclusive items and experiences.
“United Airlines and the Star Wars franchise share a common goal: connect people and unite the world,” said Mark Krolick, United’s vice president of marketing. “We are thrilled to join forces and help promote the concluding chapter of the Skywalker story, while at the same time enlisting help from our new friends from the Star Wars universe to demonstrate the importance of safety for our customers and colleagues.”
The two ultra long-range and exclusive jets are valued at $564 million according to list pricesBoeing Business Jets now has 16 orders for the 787 variant, making it one of the world’s most popular widebody business jets
Las Vegas, Nevada, October 22,2019 — A VIP customer was behind the purchase of two ultra-long range 787-9 Dreamliner airplanes, Boeing [NYSE: BA] announced today at the National Business Aviation Association’s annual convention.
The order, placed in August, has a list price value of $564 million. The VIP customer has requested to be unidentified.
The BBJ 787-9, a business jet version of the technologically-advanced 787-9 Dreamliner, is sought after by customers who place a premium on the jet’s globe-spanning range, spacious cabin and unrivaled passenger comfort. The airplane can fly 9,485 nautical miles while offering amenities such as larger windows, a lower cabin altitude, smooth ride technology, cleaner and higher humidity air, and a quieter cabin.
“The BBJ 787-9 offers our most discerning customers the ability to travel in ultimate comfort and fly directly to just about any city on earth. We’re talking about London to Sydney or Tokyo to Cape Town. Our newest BBJ 787-9 customer can clearly see the possibilities and more,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing for The Boeing Company. “With a total of 16 orders to date, the BBJ 787 program has won over other government and private customers who want to work, rest, and arrive refresh and ready for a productive day.”
The BBJ 787-9 offers one of the most spacious cabins in the industry with 2,775 ft2 (257.8 m2) of space. The spacious cabin provides a large canvas for a range of interior design options to ensure ultimate comfort on those short or long-distance flights.
The BBJ 787 builds on the success of the 787 Dreamliner – the fastest-selling widebody airplane in history with more than 1450 orders from over 80 customers on six continents.
Delta TechOps andAustria’s largest carrier,Austrian Airlines, announced the signing of an engine maintenance agreement at the MRO Europe conference in London. The exclusive agreement covers PW4060 engine maintenance for up to six years supporting the airline’s Boeing 767 fleet.
As the maintenance division of Delta Air Lines, Delta TechOps has numerous years of experience both operating and maintaining PW4000 engines. Delta TechOps will conduct scheduled full overhaul shop visits. In addition to regularly scheduled maintenance on these engines, Delta TechOps will support any unscheduled engine work as required.
“Our common vision of a good business relationship relies on enthusiasm, team spirit, sustainability, fairness and efficiency, which can only be achieved by consistent communication and shared passion for what we are doing,” said Michael Xavier Kaye, Austrian Airlines’ Vice President — Technical Operations. “With Delta Air Lines, we found a strong partner as passionate and enthusiastic as Austrian Airlines, with an experience in the services of PW4000 engines, which is second to none.”
“We are pleased that Austrian Airlines selected Delta TechOps for their PW4000 engine maintenance,” said Mike Moore, Delta TechOps’ Senior Vice President — Maintenance Operations. “We look forward to working with them in the coming years and hope to continue to support them with technical requirements the team may have going forward.”
Delta TechOps is the largest airline maintenance, repair and overhaul provider in North America. Its customers laud its reputation for high quality service. In addition to supplying maintenance and engineering support for Delta’s fleet of more than 900 aircraft, Delta TechOps serves more than 150 other aviation and airline customers around the world. The organization specializes in high-skill work such as engines, components, hangar and line maintenance. Delta TechOps employs more than 11,000 maintenance professionals and is one of the world’s most-experienced providers with more than 90 years of aviation experience.
PARIS/ZURICH (Reuters) – U.S. engine maker Pratt & Whitney faces new checks on engines for small jetliners after an engine failure forced a Geneva-bound Swiss jet to divert to Paris and prompted a brief grounding of the rest of the airline’s Airbus A220 fleet.
French air crash investigators classified the problem that disrupted the Swiss flight shortly after departure from London Heathrow on Tuesday as a “serious incident” and said it would be investigated by the U.S. National Transportation Safety Board.
It was the third engine incident involving the same airline and model of jet in as many months and resulted in a small amount of debris being scattered as the aircraft landed at Paris Charles de Gaulle, an airport source told Reuters.
It came just hours after France’s BEA agency launched an unusual appeal for 150 volunteers to scour an uninhabited wood in eastern France for a titanium engine part dating from the first blowout in July, which affected a Geneva-London flight.
A second incident in September caused a Swiss A220 to divert to Geneva, but on that occasion the engine’s housing contained fragments torn loose from the engine, the BEA said.
Swiss, owned by Germany’s Lufthansa <DLAKY>, said after Tuesday’s incident it had initially grounded its fleet of Airbus <EADSY> A220 jets for a “comprehensive inspection” of their engines.
Late on Tuesday, it said the first aircraft had already returned to service but that the inspections had forced it to cancel 100 flights, affecting 10,000 passengers.
Operations are expected to return to normal from Thursday.
ADDITIONAL CHECKS
Tuesday’s incident highlighted scrutiny of the performance of new-generation Geared Turbofan engines developed by Pratt & Whitney, a unit of United Technologies Corp <UTX>.
A spokesman for the engine maker said it was recommending additional checks for versions of the engine that power the Airbus A220 – an engine known as the PW1500G – and a rival Brazilian jet, the Embraer 190/195-E2.
A similar engine for the larger A320neo family, Airbus’ most-sold aircraft, was not affected.
“Pratt & Whitney and our airframe OEMs (manufacturers), working in coordination with the regulatory authorities, have recommended additional inspections of the low-pressure compressor for PW1500G and PW1900G engines to keep the fleet operational,” a spokesman said.
“The engines continue to meet all criteria for continued airworthiness. We are working closely with our customers to minimise disruption to their operations.”
Prompted by the earlier incidents in July and September, the U.S. Federal Aviation Administration ordered inspections on the same engine part in A220s and some Embraer jets in September.
On Tuesday, Delta Air Lines <DAL> said its A220 jets were flying as normal.
Air Baltic, which also flies the A220, said it was closely following Pratt’s latest recommendations but that it used a different version of the PW1500G engine from Swiss.
A total of 90 of the 110-130-seat A220 aircraft have been delivered, initially by Canada’s Bombardier <BDRBF> which designed the carbon-fibre jet, and later by Airbus, which bought the loss-making programme last year.
Airbus said it was working with Pratt & Whitneyand would co-operate with any investigation.
In Brazil, Embraer <ERJ> had no immediate comment.
The company uses Pratt’s PW1900G engine in larger versions of its upgraded 80-120-seat E2 jets.
It has delivered six E190-E2 planes split between Norwegian carrier Wideroe and lessor Aercap <AER>, and one E195-E2, which is not yet in commercial service but has been delivered to Brazilian airline Azul SA <AZUL>.
Azul said its operations were not affected.
(Reporting by Tim Hepher in Paris, Tracy Rucinski in Chicago, John Revill in Zurich, Michael Shields in Vienna, Marcelo Rochabrun in Sao Paulo, Allison Lampert in Montreal, Laurence Frost in Paris; Editing by Jane Merriman and Matthew Lewis)
Airline announces plan to offset carbon emissions for all UK domestic flights from 2020
British Airways to invest in verified carbon reduction projects around the world
From 2020, British Airways’ carbon emissions on international flights will be capped through the United Nations’ carbon offsetting scheme
Announcement comes as parent company International Airlines Group (IAG) announces commitment to achieving net zero carbon emissions by 2050
From January 2020, British Airways will become the first UK airline to offset carbon emissions on all its flights within the UK.
All customers flying within the UK next year on flights operated by British Airways will have the carbon emissions from their flights offset by the airline and invested in carbon reduction projects around the world*. These quality assured projects will include renewable energy, protection of rainforests and reforestation programmes.
The airline operates up to 75 flights a day between London and 10 UK cities, including Manchester, Leeds, Newcastle, Isle of Man, Edinburgh, Glasgow, Aberdeen, Belfast City, Inverness and Jersey. British Airways’ domestic emissions total around 400,000 tonnes of C02 a year.
Today’s announcement comes as British Airways’ parent company, International Airlines Group (IAG), became the first airline group worldwide to commit to achieving net zero carbon emissions by 2050, contributing to both the UK Government’s commitment to a net zero carbon economy by 2050 and the United Nations’ objective to limit global warming to 1.5 degrees. IAG’s emissions’ goal will be achieved through numerous environmental initiatives, including investing more than US$400m in the development of sustainable aviation fuels over the next 20 years.
Alex Cruz, British Airways’ Chairman and Chief Executive, said: “British Airways is determined to play its part in reducing aviation’s CO2 emissions. To solve such a multi-faceted issue requires a multi-faceted response and this initiative further demonstrates our commitment to a sustainable future. It also follows our announcement to partner with renewable fuels company, Velocys, to build a facility which converts household and commercial waste into renewable sustainable jet fuel to power our fleet.”
While customers on UK domestic flights will not need to offset their emissions, those travelling further afield can also reduce their impact on the environment by using British Airways’ carbon offsetting tool. The carbon tool enables customers to calculate their emissions and then invest in carbon reduction projects including high quality forestry and renewable energy projects in Peru, Sudan and Cambodia**.
Using the tool, which can be accessed on https://www.pureleapfrog.org/ba/carbon_zero, a customer will pay around £1 to offset a return flight from London to Madrid, travelling in economy, while from London to New York in business class will cost around £15.***
Notes to Editors
* British Airways is investing in Verified Carbon Standard projects.
**British Airways’ offset scheme is operated through the airline’s partnership with not-for-profit organisation Pure Leapfrog. For more information on the carbon reduction projects, visit: https://www.pureleapfrog.org/ba
***While customers travelling on domestic flights’ carbon emissions are offset for them, customers flying outside of the UK can choose to pay to offset their emissions. Examples of pricing are shown below:
Wizz Air UK, member of one of Europe’s fastest growing airline groups, Wizz Air group [PNK: WZZAF] the leading low-cost carrier in Central and Eastern Europe, today announces that it will launch a new route in November 2019 connecting London Luton with sunny Tenerife in the Canary Islands. Tickets are already on sale on wizzair.com and on the airline’s mobile app.
From 16 November, Wizz Air UK will offer flights from London Luton to the popular Spanish holiday destination of Tenerife. Fares to the biggest island of the archipelago start from £25.99/EUR 29.99*. Besides its white sandy beaches and all-inclusive resorts, the island offers extraordinary beauty and diversity, with remote mountain-ridge villages, cultured port settlements and charming ancient towns. Today’s announcement will see Wizz Air UK create seventy thousand new seat capacity at its London Luton base and 50 additional indirect jobs** in the UK. With this new route Wizz Air – the largest airline to operate from London Luton with over 40% market share – will be offering 63 routes to 30 countries from its London Luton base.
Owain Jones, Managing Director, Wizz Air UK said: “It is our pleasure to announce another long awaited route to a popular Spanish holiday destination. The new route to Tenerife, starting already in November demonstrates that Wizz Air UK is committed to offering customers ultra-low fares to destinations across all of Europe, connecting the UK with ever more leisure destinations. The WIZZ team looks forward to welcoming customers old and new on-board one of our ultra-efficient Airbus aircraft on Europe’s cleanest fleet very soon.”
LONDON, Aug 23 (Reuters) – British Airways pilots are to go on strike for three days in September, their union said on Friday, in a dispute over pay that could disrupt the peak summer holiday season.
Last month, the pilots overwhelmingly voted for industrial action and the airline, which is part of IAG, failed in a court bid to stop them.
“The British Airline Pilots Association (BALPA) has today given notice to British Airways that it will call on its members to strike on 9th, 10th and 27th September 2019,” the union said in a statement.
“It is clear, following discussions with members over the last few days, that BA’s most recent offer will not gain the support of anywhere near a majority of its pilots.”
British Airways said the strike action was unjustifiable as their pay offer was fair and that the strikes would destroy the travel plans of tens of thousands of customers.
“We are now making changes to our schedule. We will do everything we can to get as many people away on their journeys as possible,” the airline said in a statement.
“However, it is likely that many of our customers will not be able to travel and we will be offering refunds and re-bookings for passengers booked on cancelled flights.”
The airline said it was exploring options to supplement its fleet with aircraft and crew from other airlines, known as wet-leasing, and working with partner airlines to schedule larger aircraft to take more customers.
(Reporting by Alistair Smout; editing by Stephen Addison)
