Tag: long (Page 9 of 17)

GSV Bids $2.5 Billion for Malaysia Airlines

April 7, 2020 / WIL BALDWIN

FILE PHOTO: A Malaysia Airlines plane is seen at Kingsford Smith International Airport in Sydney

KUALA LUMPUR (Reuters) – Privately held Golden Skies Ventures (GSV) has made a $2.5 billion offer to fully take over the holding company of ailing state carrier Malaysia Airlines, with financing from a European bank, its executives told Reuters on Monday.

GSV, which was set up by former Malaysia Airlines officials and professionals with aviation experience, made the proposal a month ago, as airlines around the world were hammered by travel restrictions following the coronavirus pandemic.

“We have secured in excess of $2.5 billion from the bank. We will take about three to four months to get the long-term financing,” Chief Executive Shahril Lamin told Reuters in a phone interview.

GSV said it also has a commitment from a Japanese private equity firm to inject immediate funds into the aviation group through an equity deal.

It declined to name the firms involved, adding it was in talks with other foreign banks and private equity firms for further funding.

GSV has submitted its proposal to Morgan Stanley which has been hired by the aviation group’s sole owner, sovereign wealth fund Khazanah Nasional Bhd.

Sources have previously said Japan Airlines Co Ltd, domestic carriers AirAsia Group Bhd and Malindo Air have shown interest in Malaysia Airlines.

GSV said it would assume most of the airline’s debt that is being held by the government in outstanding Islamic bonds.

Khazanah and Morgan Stanley did not immediately respond to emailed requests for comment.

GOLDEN SHARE

The proposal includes keeping the government’s so-called golden share which allows it majority voting rights and maintains Malaysia Airlines’ flag carrier status.

GSV expects it will have ample liquidity to help the airline operate comfortably for up to 18 months.

It intends to reinstate Malaysia Airlines as a premium long-haul airline by expanding its flight network and maximising utilisation of its 81-plane fleet. It also plans to keep other business units such as the budget airline, cargo freighter and maintenance repair and overhaul unit.

“It’s still a viable venture, it has inherent strengths. We are saying we won’t lay off the 13,000 frontline employees and we are not going to asset-strip the airline,” Deputy Chief Executive Ravindran Devagunam said.

The firm aims to achieve positive earnings before interest, taxes, depreciation and amortisation within three years of taking over, and targets 15 billion ringgit ($3.5 billion) in revenue in 2025.

Plans for a listing or possible listing of its units are on the cards in three to five years, they said.

Ravindran said the firm is banking on pent-up travel demand when the coronavirus is contained. “Regardless of how long (the virus) will take this year, we are looking at an uptick in the business from summer 2021.”

($1 = 4.3450 ringgit)

(Reporting by Liz Lee; Editing by David Holmes and Edwina Gibbs)

Boeing Receives $1.5 Billion P-8A Poseidon U.S. Navy Contract

March 31, 2020 / WIL BALDWIN

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.

Nova Group Makes Space for Growth Plan

March 24, 2020 / WIL BALDWIN

Global defence company Nova Group is maintaining its projections of over $200 million revenue this financial year with longer-term goals to continue expanding its global reach. A newer focus on space is continuing to diversify the portfolio of the South Australian headquartered company that has invested more than $20 million on eight acquisitions across the globe to cement its footprint.

In South Australia, the company’s new Nova IGS Network is providing space ground connectivity for small satellite operators with the site now being used by international clients including Tyvak USA and RBC USA. Nova is also in talks with an Italian-based space company wanting to expand its presence in Australia.

Based on a 21 hectare site in Peterborough in South Australia’s mid north, the site is used to track low earth orbit satellites through customer’s own terminals and Nova has plans to attract further European companies over upcoming years. “Nova is also planning to utilise the site as a ground station test bed for emerging Space 2.0 technologies and support future defence projects,” a spokesman said. “Peterborough provides the vital ground segment element in order to allow satellite operators to downlink/download their data.”

Nova Group is marking 20 years in business, with Nova Systems founded by Jim Whalley and Peter Nikoloff and originally offering flight-testing services in South Australia’s capital city of Adelaide. It has since grown to having 600 employees working on projects around the world including with the Australian Defence Force, United Kingdom Ministry of Defence, Royal Norwegian Air Force and the Republic of Singapore Air Force. “With a solid foundation in the defence markets in Australia and the UK, and a footprint in space, transport and energy, I am very proud to be exporting Australian capability and know-how to the world and look forward to positioning to our next growth phase,” Whalley said. Nova was recently awarded one of four industry leads in the Major Service Provider consortium providing integrated support contracts to the Australia Defence Force over the next 10 years.

Austrian Airlines Will Temporarily Suspend Flight Operations

March 19, 2020 / WIL BALDWIN

Last flight will land on 19 March in Vienna / all further flights are temporarily suspended until 28 March
Lufthansa Group: entire short and long-haul schedule significantly reduced again
As of 17 March: ten percent of the originally planned capacity will still be available on long-haul routes and 20 per cent on short-haul routes
Lufthansa Group airlines fly thousands of cruise passengers and holidaymakers home
Arrangements for further evacuation flights
Lufthansa Cargo flight operations carries out all planned flights despite corona crisis

The Lufthansa Group carrier Austrian Airlines will temporarily suspend scheduled flight operations as of Thursday, 19 March 2020. Austrian Airlines is thus reacting to the entry restrictions imposed by many countries in response to the massive spread of the coronavirus.

For the time being, the last flight with flight number OS 066 will land in Vienna from Chicago at 8:20 a.m. on 19 March. Until then, flight operations are to be reduced in a controlled and structured manner in order to bring all passengers and crews home if possible. Initially Austrian Airlines will cancel all flights until March 28th 2020, and passengers who have booked a flight with Austrian Airlines during this period will be rebooked on other airlines if possible.

In addition, Lufthansa Group airlines will further reduce their short- and long-haul schedule. The cancellations, which will be published as early as tomorrow, March 17th, will lead to a sharp decline in long-haul service especially in the Middle East, Africa and Central and South America. Overall, the Lufthansa Group’s seating capacity on long-haul routes will be reduced by up to 90 per cent. A total of 1,300 weekly connections were originally planned for summer 2020.

Within Europe the flight schedule will also be further reduced. Starting tomorrow, around 20 percent of the originally planned seating capacity will still be offered. Originally, some 11,700 weekly short-haul flights were planned for summer 2020 with Lufthansa Group airlines.

The additional cancellations will be published over the next few days and passengers will be informed accordingly.

Despite the large-scale cancellations, Lufthansa, Eurowings and Austrian Airlines have scheduled more than 20 special flights with over 6,000 guests on short notice to fly cruise passengers and holidaymakers back home. Wide-body aircraft namely, the Boeing 747 & 777 and Airbus A350 are being used to offer as much capacity as possible on these return flights. Since thousands of German, Austrian, Swiss and Belgian citizens are still waiting to return to their home countries, Lufthansa Group airlines have made arrangements for further evacuation flightsand are in close contact with the governments of their home countries concerning this. Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG, said: “Now it is no longer about economic issues, but about the responsibility that airlines bear as part of the critical infrastructure in their home countries.” Lufthansa will work with airports and air traffic controllers to develop a coordinated concept for maintaining the critical infrastructure.

The new timetable for all Lufthansa Group airlines will initially be valid until 12 April 2020. Lufthansa Group passengers planning a trip in the coming weeks are advised to check the current status of the respective flight on their airline’s website before departure. If rebooking possibilities exist, the passengers concerned will be proactively informed about alternatives, as long as they have provided their contact details online. In addition, currently changed rebooking conditions apply on a goodwill basis. Customers can find more information about this at lufthansa.com.

We are currently receiving an exceptionally high number of customer calls at our Service Centers and at our stations. We are continuously working on increasing capacity to meet this demand. Nevertheless, there are currently long waiting times. Passengers can use the extensive rebooking and self-service options on the airlines’ websites as an alternative to the Service Centers.

Unlike the passenger airlines, Lufthansa Cargo has so far been able to operate all its planned flights except for cancellations to mainland China. The Lufthansa Group subsidiary will continue to do everything in its power to maintain the flight operations of its own cargo fleet and thus support the global supply chains. Especially during the current crisis, logistics and thus also airfreight are of paramount importance.

American Airlines Announces Additional Schedule Changes in Response to COVID-19

March 15, 2020 / WIL BALDWIN

American Airlines Group Inc. (NASDAQ: AAL) will implement a phased suspension of additional long-haul international flights from the U.S. starting on March 16. This suspension will last through May 6. This change is in response to decreased demand and changes to U.S. government travel restrictions due to coronavirus (COVID-19). The airline will:

Reduce international capacity by 75% year over year — from March 16 to May 6
Continue to operate one flight daily from Dallas-Fort Worth (DFW) to London (LHR), one flight daily from Miami (MIA) to LHR and three flights per week from DFW to Tokyo (NRT)
Continue short-haul international flying, which includes flights to Canada, Mexico, Caribbean, Central America and certain markets in the northern part of South America, as scheduled

In addition to the international changes, the airline anticipates its domestic capacity in April will be reduced by 20% compared to last year and May’s domestic capacity will be reduced by 30% on a year over year basis.

International Route Changes

By region, the new schedule changes include the following:

Asia, effective March 16

American will suspend all remaining flights to Asia, except for three flights per week from DFW to NRT

Australia and New Zealand, effective March 16

Suspending service from Los Angeles (LAX) to Auckland (AKL) effective March 16, which was slated to end seasonal flying on March 28
Suspending service from LAX to Sydney (SYD) effective March 16

Europe, phased suspension

American will continue to operate one flight daily from DFW to LHR and MIA to LHR
Suspending flights from New York (JFK), Boston (BOS), Chicago (ORD), and LAX to LHR gradually over the next seven days to reaccommodate passengers and crew
LHR, Dublin (DUB) and Manchester (MAN) flights from Charlotte (CLT), Philadelphia (PHL) and Phoenix (PHX) will be suspended faster, as these airports are not approved gateways by the U.S. Department of Homeland Security. Final eastbound flights from CLT, PHL and PHX will be on March 15; final westbound flights returning from LHR, DUB and MAN will depart March 16
Continued suspensions in other parts of Europe, as previously announced, including the delayed start of some seasonal routes as well as flights to and from Amsterdam (AMS), Barcelona (BCN), Frankfurt (FRA), Madrid (MAD) and Munich (MUC) Paris (CDG) and Zurich (ZRH) through early May, or later, based on guidance from the U.S. government and customer demand

South America, effective March 16

Suspending service from JFK and MIA to Rio de Janeiro (GIG) and Georgetown, Guyana (GEO)
Suspending service from DFW, JFK and MIA to São Paulo (GRU)
Suspending service from DFW and MIA to:
- Chile: Santiago (SCL)
- Colombia: Bogota (BOG)
- Ecuador: Guayaquil (GYE) and Quito (UIO)
- Peru: Lima (LIM)
Suspending service from MIA to:
- Brazil: Brasilia (BSB) and Manaus (MAO)
- Colombia: Barranquilla (BAQ), Cartagena (CTG), Cali (CLO), Medellin (MDE) and Pereira (PEI)

These capacity reductions assume no slot waivers are in place other than those previously granted. At airports where demand exceeds airfield and/or terminal capacity, access is governed by slots that grant airlines permission to take off and land at specific times. Given the decrease in demand related to COVID-19, American has requested temporary relief from this usage requirement — otherwise known as requesting a slot waiver — to better align capacity with demand without the risk of losing valuable takeoff and landing slots for the future. American will continue to review its network and make adjustments as needed if waivers are granted.

Boeing Reveals its U.S. Army Future Attack Reconnaissance Aircraft Design

March 3, 2020 / WIL BALDWIN

Agile, purpose-built and designed for the Army’s evolving missions

Boeing [NYSE: BA] is offering the U.S. Army an agile, fully integrated, purpose-built system for the Future Attack Reconnaissance Aircraft (FARA) prototype competition.

Boeing FARA is designed to meet the Army’s current mission needs while evolving as technologies and missions change. The thrust compounded single-main rotor helicopter boasts a six-bladed rotor system, a single engine, tandem seating and a modular, state-of-the-art cockpit with a reconfigurable large area display and autonomous capabilities.

“We’re offering more than a helicopter – we’re offering an affordable and fully integrated system for the Army, the mission and the future. We’ve blended innovation, ingenuity and proven rotorcraft experience with extensive testing and advanced analysis to offer a very compelling solution,” said Mark Cherry, vice president and general manager of Boeing’s Phantom Works.

The fly-by-wire design leverages more than 65 years of rotorcraft experience, proven advanced and additive manufacturing technology, and product commonality driving down risk and costs. The system will provide seamless capability within the Army ecosystem to include Long-Range Precision Fires and air-launched effects.

“We listened to the Army, assessed all alternatives, and optimized our design to provide the right aircraft to meet the requirements,” said Shane Openshaw, Boeing FARA program manager. “We are offering a very reliable, sustainable and flexible aircraft with a focus on safety and the future fight.”

FARA will fill a critical gap in Army aviation for an advanced light attack and reconnaissance capability, previously held by the now-retired Bell OH-58D Kiowa Warrior.

For more information about Boeing FARA and its features, visit www.boeing.com/FARA.

Aeroflot Takes Delivery of its First A350-900

February 28, 2020 / WIL BALDWIN

Aeroflot, the Russian flag carrier and member of the SkyTeam alliance, has taken delivery of its first A350-900, becoming the launch operator of the latest-generation widebody aircraft in Eastern Europe and CIS. Aeroflot’s A350-900 features a distinctive new livery embracing its almost 100-year heritage. Aeroflot has a total of 22 A350-900 aircraft on order and operates an Airbus fleet of 126 aircraft (107 A320 Family and 19 A330 Family aircraft).

Aeroflot’s A350-900 features a brand new elegant cabin design, offering unrivalled passenger comfort. The aircraft has a spacious three-class cabin layout with 316 seats: 28 private Business Class suites with full-flat seats, 24 Comfort Class with extra legroom and 264 Economy Class. In addition, the latest-generation Panasonic eX3 in-flight entertainment system, HD screens and Wi-Fi connectivity will ensure enhanced experience for all passengers on long-haul flights. Aeroflot will operate its A350-900 from Moscow to a number of destinations including London, Dubai, New York, Miami, Osaka and Beijing.

The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments – up to ultra-long haul (9,700 nm). Its Airspace by Airbus cabin is the quietest of any twin-aisle aircraft and offers passengers and crews the most modern in-flight flying experience. The aircraft features the latest aerodynamic design, a carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce Trent XWB engines. Together, these latest technologies result in 25% lower operating costs, as well as 25% reduction in fuel burn and CO₂ emissions compared with previous-generation competing aircraft – demonstrating Airbus’ commitment to minimise its environmental footprint while remaining at the cutting edge of air travel.

DHL Express Upgrades its Fleet with 6 New Boeing 777 Freighters

February 24, 2020 / WIL BALDWIN

First delivery of 2020 batch accomplished, recent 777F touched down at its operational home base Cincinnati last Thursday
DHL continues strengthening its intercontinental network by renewal of its long-haul aircraft fleet
State-of-the-art aircraft also supports the Group’s goal of improving its carbon footprint

DHL Express, the world’s leading international express service provider, is receiving six new Boeing 777F-200 cargo aircraft this year. The first of these planes to come in 2020 landed last Thursday at its future base of operations, the Cincinnati/Northern Kentucky International Airport (CVG). In 2018 DHL ordered 14 new Boeing 777F, with four delivered in 2019, six to come this year and the remaining four to be taken into service in 2021. The current freighter will be operated by DHL Express’ partner airline Kalitta. The renewal is part of the overall modernization of the long-haul intercontinental fleet of the courier company and replaces older planes. The Boeing 777F is equipped with top-of-the-line fuel-efficient technology and features the longest range at full payload of any widebody freighter aircraft. This allows DHL to operate with higher efficiency while meeting the increasing global demand for express logistics service.

“We’re excited to welcome more Boeing 777Fs to the DHL Express family this year,” says John Pearson, CEO of DHL Express. “With the modernization of our intercontinental fleet, we can simultaneously enhance our proven ability to meet growing demand, improve our environmental footprint and deliver best quality service to our customers. DHL has made its mark time and time again with innovative solutions and technologies. We are pleased to continue demonstrating to partners and customers alike how these advancements stand to elevate the entire express logistics industry while bringing us closer to achieving our Strategy 2025 goals.”

In the center of its Strategy 2025 DHL Express focusses particularly on ‘E-commerce’ as a growth driver and ‘efficiency’ for further increasing its profit. With a payload capacity of 102 tons and a range of 9,200 km, the B777F has the largest capacity and range of all twin-engine freighter aircraft. They are also more fuel-efficient, reliable than older planes and reducing CO2 emissions by 18 per cent. DHL Express operates over 260 dedicated aircraft with 17 partner airlines on over 3.000 daily flights across 220 countries and territories.

“We expect further growth in cross-border e-commerce trade and, as a result, increased demand for our express logistics services and expertise in intercontinental deliveries,” says Travis Cobb, EVP Global Network Operations and Aviation at DHL Express. “With the new Boeing 777Fs, we can increase our intercontinental connections while reducing carbon emissions and fuel consumption. This enables us to continue to provide customers with the excellent quality they’ve come to expect from us while we work to expand our global services.”

Airbus Sales Chief Says No Need to Cut Production of A330neo

January 15, 2020 / WIL BALDWIN

MONTREAL (Reuters) – Airbus <EADSY> sees enough demand for its wide-bodied A330neo passenger jet to keep production stable, Chief Commercial Officer Christian Scherer told Reuters on Wednesday.

With some airlines seen unlikely to take delivery of all the jets they have ordered, there has been speculation Airbus would have to trim production of the latest version of its most profitable long-range jet despite a recent flurry of new sales.

“Considering the demand I see on the A330neo I see no need to cut production levels,” Scherer told Reuters on the sidelines of an Air Canada <AC.TO> event in Montreal.

“Production is stable on the A330.”

Last year, Airbus secured 99 firm orders for the A330neo including 40 to an unidentified buyer in December.

Scherer said Airbus is also progressing toward reducing costs on its smallest jet, the A220. The company is targeting a double-digit percentage reduction in production costs.

(Reporting by Allison Lampert in Montreal; Editing by Matthew Lewis)

Boeing Net Orders Slump to Lowest in Decades

January 14, 2020 / WIL BALDWIN

(Reuters) – Boeing Co <BA> reported its worst annual net orders in decades on Tuesday, along with its lowest numbers for plane deliveries in 11 years, as the grounding of its 737 MAX jet saw it fall far behind main competitor Airbus <EADSY>.

Boeing’s gross orders plunged 77% to 246 in 2019, while net orders after cancellations or conversions were just 54 airplanes compared with 893 the previous year.

After an accounting adjustment representing jets ordered in previous years but are now unlikely to be delivered, Boeing said its net total for orders this year sank to a negative 87 airplanes.

As a result, Boeing’s book-to-bill ratio, which measures orders against deliveries, came in at a negative 0.23 in 2019.

Boeing said unidentified customers canceled orders for three 787-9’s in December and another customer canceled an order for a 787-8.

Ten months after the MAX was grounded in March following two fatal crashes, Boeing still has a backlog of more than 5,400 orders for its long- and short-distance commercial jets.

By comparison, Airbus said earlier this month it racked up a net 768 orders last year after cancellations and delivered a record 863 planes.

Boeing said on Tuesday deliveries fell by 53% to 380 planes over the whole of last year, as the MAX’s grounding made it impossible for it to deliver the planes to customers, forcing it to halt production last month and lose the top spot to its European rival for the first time in eight years.

Planemakers receive most of their revenue when aircraft are delivered – minus accumulated progress payments – making final delivery crucial for their finances.

Analysts estimate that Boeing has been losing around $1 billion a month because of the grounding and it reported an almost $3 billion negative free cash flow in the third quarter. Fourth-quarter figures are due on Jan. 29.

Boeing parted ways with Chief Executive Officer Dennis Muilenburg last month as it became increasingly clear that he was making little headway in resolving the crisis.

The company is still working to fix the MAX and there is little clarity on when Boeing is likely to get the green light from regulators to bring the airplane back into service, making analysts and investors jittery about the company’s prospects in 2020.

(Reporting by Tim Hepher in Paris, and Ankit Ajmera and Rachit Vats in Bengaluru; Editing by Patrick Graham, Shounak Dasgupta and Amy Caren Daniel)

International Route Changes

Asia, effective March 16

Australia and New Zealand, effective March 16

Europe, phased suspension

South America, effective March 16

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