Tag: 10 (Page 1 of 3)

Daimler to Ax at Least 10,000 Jobs in Latest Car Industry Cuts

November 30, 2019 / WIL BALDWIN

FRANKFURT (Reuters) – Daimler said on Friday it will cut at least 10,000 jobs worldwide over the next three years, following others in the industry as they cut costs to invest in electric vehicles while grappling with weakening sales.

It marks the third announcement on cost cuts this week by a major German car company as automakers seek to fund huge investments into cleaner and self-driving technologies while demand in China, their biggest market, is falling and a trade war between Washington and Beijing is curbing economic growth.

“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said in a statement.

Daimler, the owner of Mercedes-Benz, revealed the 3% cut in its workforce after reaching an agreement on its plans with labor unions.

They have agreed on a variety of measures to cut costs and jobs, including expanding part-time retirement and a severance program to be offered in Germany. The company is also cutting 10% of worldwide management positions.

Staff reductions would be in the low five-digits, or at least 10,000 people, according to Wilfried Porth, a board member in charge of human resources. The company employed 304,680 staff at the end of the third quarter.

Plans laid out by Daimler in November showed the company aimed to cut staff costs by around 1.4 billion euros ($1.54 billion) by the end of 2022.

The announcement comes days after Volkswagen’s <VOWG_p.DE> luxury car unit Audi said it would cut up to 9,500 jobs or one in ten staff by 2025, freeing up billions of euros to fund its shift toward electric vehicle production.

Also this week, BMW said that its management and labor had reached an agreement on measures to reduce bonus and other pay schemes for staff to cut costs.

Car suppliers Continental and Osram have also announced staff and cost cuts.

Daimler has repeatedly cut its profit outlook over recent months, partly to cover a regulatory crackdown on diesel emissions but also because of a slowing auto market.

Group operating profit will be “significantly lower” than a year ago, the company said last month.

Other measures to reduce staffing costs include offering shorter working weeks.

Agreements in place to prevent forced redundancies in Germany until 2029 will remain in place, Daimler said.

The workforce needs a clear strategy for the future, said Michael Brecht, chairman of Daimler’s works council. “A reduction in capacity must not be carried out on the backs of the employees,” he said.

(Editing by Elaine Hardcastle)

The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin

Boeing 737 MAX 10 Makes its Debut

November 23, 2019 / WIL BALDWIN

RENTON, Wash., Nov. 22, 2019 – Boeing [BA] marked a key milestone as thousands of employees gathered for the debut of the first 737 MAX 10 at the company’s Renton, Washington factory. During a ceremony, Boeing leaders highlighted the team’s accomplishments and recognized their efforts in completing production of the newest member of the 737 MAX family.

“Today is not just about a new airplane. It’s about the people who design, build and support it,” said Mark Jenks, vice president and general manager of the 737 program. “This team’s relentless focus on safety and quality shows the commitment we have to our airline customers and every person who flies on a Boeing airplane.”

The 737 MAX 10, the largest variant of the MAX family, can seat up to 230 passengers and offers the lowest seat-mile cost of any single-aisle airplane ever produced. The airplane will now undergo system checks and engine runs prior to first flight next year.

“I’m honored to take this airplane on its first flight and show the world what you’ve put your heart and soul into,” 737 Chief Pilot Jennifer Henderson told the employee crowd.

The 737 MAX 10 currently has more than 550 orders and commitments from more than 20 customers around the globe.

Boeing and Air New Zealand Finalize Order for Eight 787-10 Dreamliner Jets

September 25, 2019 / WIL BALDWIN

Leading long-range carrier builds future fleet with eight super-efficient 787-10s and includes options to increase number of aircraft to up to 20 Dreamliners

Largest Dreamliner model offers more seats and unmatched fuel efficiency, and environmental performance

SEATTLE, Sept. 25, 2019 /PRNewswire/ — Boeing [NYSE:BA] and Air New Zealand [NYSE:ANZLY] today finalized an order for eight 787-10 Dreamliner airplanes valued at $2.7 billion at list prices. The carrier, recognized for its long-range flights and global network, will integrate the largest Dreamliner model into its world-class fleet of 787-9 and 777 airplanes from 2022 to strategically grow its business.

The airplane deal, announced in May as a commitment, includes options to increase the number of aircraft from eight up to 20, and substitution rights that allow a switch from the larger 787-10 to smaller 787-9s, or a combination of the two models for future fleet and network flexibility.

“This is an exciting decision for our business and our customers as we deliver on our commitment to grow our business sustainably. With the 787-10 offering around 15 percent more space for both customers and cargo than the 787-9, this investment creates the platform for our future strategic direction and opens up new opportunities to grow,” said Air New Zealand Chief Executive Officer Christopher Luxon.

As the largest member of the passenger-pleasing and super-efficient Dreamliner family, the 787-10 is 224 feet long (68 meters) and can seat up to 330 passengers in a standard two-class configuration, about 40 more than the 787-9. Powered by a suite of new technologies and a revolutionary design, the 787-10 set a new benchmark for fuel efficiency and operating economics when it entered commercial service last year. The airplane allows operators to achieve 25 percent better fuel efficiency per seat compared to the previous airplanes in its class.

“Air New Zealand has made very strategic investments in advanced widebody aircraft to build on its status as a leading global carrier connecting the South Pacific with Asia and the Americas. We are very honored that Air New Zealand has selected to add the 787-10 and its unique capabilities to complement its long-haul fleet of 777 and 787-9 airplanes,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing, The Boeing Company.

Air New Zealand was a global launch customer for the 787-9 and today operates 13 of the Dreamliner variant. With another 787-9 on the way and the 787-10 airplanes in the future, the airline’s Dreamliner fleet is on track to grow to 22. The new Dreamliner aircraft will replace Air New Zealand’s fleet of eight 777-200ERs. Air New Zealand’s widebody fleet also includes seven 777-300ERs.

As part of its efforts to maintain an efficient and reliable fleet, Air New Zealand utilizes a number of Boeing Global Services solutions, including Airplane Health Management and Maintenance Performance Toolbox. These digital solutions provide maintenance data and decision support tools that enable aircraft maintenance teams to increase operational efficiency.

Dozens of Airbus A380’s Face Urgent Checks

August 21, 2019 / WIL BALDWIN

LONDON, Aug 21 (Reuters) – Investigators probing an engine explosion on an Air France A380 in 2017 are studying a possible manufacturing flaw in a recently salvaged cracked part in a move likely to trigger urgent checks on dozens of Airbus superjumbos, people familiar with the matter said.

The focus of a two-year-old investigation into the mid-air explosion over Greenland, which left the plane carrying more than 500 passengers with the front of one engine missing, has switched to the recently recovered “fan hub,” the people said.

The titanium alloy part is the centrepiece of a 3-metre-wide fan on engines built for the world’s largest airliner by U.S.-based Engine Alliance, co-owned by General Electric and United Technologies unit Pratt & Whitney.

It had sat buried in Greenland’s ice sheet since September 2017 when one of four engines on Air France flight 66 abruptly disintegrated en route from Paris to Los Angeles. It was prised from the ice in June after a high-tech aerial radar search.

Confirming the focus of the probe after Reuters reported the plans for inspections, France’s BEA air accident agency said it had discovered a “sub-surface fatigue crack” on the recovered part and the engine maker was preparing checks.

The people familiar with the matter linked the crack to a suspected manufacturing flaw and said the checks – to be carried out urgently on engines that have conducted a certain number of flights – would affect dozens of the double-decker jets.

The people said the suspect part was fabricated on behalf of consortium member Pratt & Whitney, which declined to comment.

Engine Alliance is one of two engine suppliers for the Airbus A380 in competition with Britain’s Rolls-Royce.

Its engines power a total of 152 aircraft or just over 60 percent of the 237 A380s in service.

Besides Air France, other airlines operating the A380 with Engine Alliance powerplants include Dubai’s Emirates, Qatar Airways, Abu Dhabi-based Etihad and Korean Air.

The checks will involve taking some planes out of service outside their usual maintenance schedules, one source said.

Investigations are not complete and are likely to tackle other features such as the loads or physical forces at play. Experts say air accidents are rarely caused by isolated factors.

Europe’s Airbus declined to comment.

SIOUX CITY REMEMBERED

Nobody was hurt in the September 2017 incident, in which the Air France superjumbo diverted safely to Goose Bay in Canada.

Although rare, uncontained engine failures, in which shrapnel capable of puncturing the fuselage exits an engine at extremely high speeds, automatically raise alarm.

The checks come weeks after relatives marked 30 years since an engine failure left a United Airlines DC-10 with almost no control, culminating in the death of 111 out of the 296 people on board during an attempted landing at Sioux City, Iowa.

U.S. investigators cited a defective titanium alloy part and weak inspection procedures, although they also praised the “highly commendable” performance of the crew of flight 232.

The July 1989 crash sped up improvements in manufacturing methods for titanium alloy. Experts say hidden internal defects in such parts are unusual but remain difficult to detect.

Titanium alloy is used widely in aerospace, which is the metal’s biggest customer due to its strength compared to the weight of each part and its ability to handle high temperatures.

(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta and Elaine Hardcastle)

Vietnam Airlines Flies Its First Boeing 787-10 Dreamliner

August 18, 2019 / WIL BALDWIN

NORTH CHARLESTON, S.C., Aug. 15, 2019 /PRNewswire/ — Boeing [NYSE: BA] delivered the first of eight 787-10 Dreamliner airplanes to Vietnam Airlines today via lease from Air Lease Corporation [NYSE: AL]. The Vietnamese flag carrier plans to put the 787-10 – the most fuel-efficient twin-aisle airplane in the industry – on the busiest routes in its expanding network.

“Welcoming the largest member of the 787 family to our growing fleet ensures we continue to boast one of the youngest and most modern fleets in Asia and also adds a competitive edge to Vietnam Airlines’ operations. We appreciate the unbeatable efficiency performance with reduced fuel burn and outstanding passenger comfort and amenities,” said Pham Ngoc Minh, Chairman of the Board of Directors of Vietnam Airlines. “On our journey to become a 5-star airline, we are confident that the Boeing 787-10 fleet will further elevate the customer experience on the Hanoi to Ho Chi Minh route as well as many international routes.”

The new 787-10 will complement Vietnam Airlines’ existing fleet of 787-9 jets. Both feature the Dreamliner’s ultra-efficient technology and passenger-pleasing comforts. The 787-10 is longer than the 787-9, providing the space to carry 40 more passengers and more cargo and helping it offer the lowest operating costs per seat of any twin-aisle jet in service today. Vietnam Airlines is outfitting its 787-10 models with 367 seats (24 in business class and 343 in economy class). In addition to its size and fuel efficiency, the 787-10 can cover long distances. With a published range of 6,430 nautical miles (11,910 km), the 787-10 can fly more than 95 percent of the world’s twin-aisle routes.

“ALC is extremely pleased to announce this important first 787-10 delivery to Vietnam Airlines with Boeing and be the first lessor to introduce the airline to the -10,” said Steven F. Udvar-Házy, Executive Chairman of Air Lease Corporation. “This first of eight 787-10s from ALC will significantly contribute to Vietnam Airlines’ ongoing major widebody fleet upgrade with the latest technology. ALC values our long-time role as an advisor when planning the growth and replacement of Vietnam Airlines’ fleet to maintain the airline’s leading position in Southeast Asia and worldwide.”

With the delivery to Vietnam Airlines, the 787-10 continues to expand its global presence. More than 30 of this Dreamliner model have been delivered to six operators since the airplane entered commercial service last year. Airlines are deploying the 787-10 around the world, especially in Asia as it is home to more than half of all 787-10 destinations.

“Vietnam Airlines has achieved impressive growth in recent years and helped power the rapid rise of commercial aviation in Southeast Asia. We see even greater potential ahead and the 787-10 brings the perfect combination of size and efficiency for Vietnam Airlines to serve high-demand routes, while the longer-range 787-9 delivers the flexibility to connect the world’s major cities with popular destinations in Vietnam and surrounding countries,” said Ihssane Mounir, senior vice president of Commercial Sales and Marketing of The Boeing Company. “We are excited to partner once again with ALC to bring a state-of-the-art airplane to a valued customer. We are confident the 787-10 will help Vietnam Airlines continue to grow its regional and international network and improve its award-winning service.”

To optimize the performance of its 787 fleet, Vietnam Airlines uses Boeing Global Services solutions such as Airplane Health Management (AHM) to capture real-time flight data and enable predictive maintenance. AHM is powered by Boeing AnalytX, a collection of software and consulting services that transform raw data into greater efficiency during every phase of flight.

Boeing 737 MAX Boosted by IAG Plan to Order 200 Jets

June 18, 2019 / WIL BALDWIN

PARIS, June 18 (Reuters) – Boeing’s grounded 737 MAX jet received a boost on Tuesday after British Airways-owner IAG signed a letter of intent to order 200 of the planes and said it was confident that it would return to service in the coming months.

Boeing said the deal had a value of more than $24 billion at list prices.

IAG said the mix of 737-8 and 737-10 aircraft, to be delivered between 2023 and 2027, would be powered by CFM Leap engines and used across a number of its airlines including British Airways, Vueling and Level.

The MAX 737 was grounded in March following two deadly crashes, and Boeing has been working on a software fix to get the jet back flying by the end of the year.

IAG Chief Executive Willie Walsh said he had experienced Boeing’s MCAS anti-stall software in person, adding it was “very helpful to see it in operation” and to “understand the changes” that Boeing was proposing.

“It gave me confidence both in terms of the aircraft and the changes that Boeing introduced,” he said at the announcement of the deal at the Paris Airshow.

“I am confident in Boeing.”

Boeing shares rose 2% on the announcement. The company is working towards a certification flight with regulators soon.

Boeing commercial airplanes boss Kevin McAllister said the decision of when the MAX flies again was in the hands of the regulators.

(Reporting by Tim Hepher, Eric M. Johnson and Alistair Smout Editing by Jane Merriman and Mark Potter)

Korean Air to Buy 30 Boeing 787 Planes for $9.67 Billion

June 18, 2019 / WIL BALDWIN

SEOUL (Reuters) – South Korea’s biggest carrier Korean Air Lines said on Wednesday it has signed a memorandum of understanding to buy 30 Boeing planes for $9.67 billion.

The company said in a statement that it will buy 20 Boeing 787-10s and 10 more 787-9s to add to its existing fleet.

It is the first purchase for a South Korean carrier of a 787-10 model, the largest member of the Dreamliner family, the company said.

(Reporting by Hayoung Choi, Joori Roh; Editing by Shri Navaratnam)

Air Lease Places 10 New Boeing 787-10’s with Korean Air

June 18, 2019 / WIL BALDWIN

PARIS, France, June 18, 2019 – Today Air Lease Corporation (NYSE: AL; “ALC”) announced the long-term lease placement with Korean Air for ten new Boeing 787-10 aircraft. Scheduled to deliver to the airline starting in 2021 through 2023 from ALC’s order book with Boeing, these ten 787-10s from ALC are the first -10 Dreamliner aircraft to be placed in Korean Air’s fleet.

“As a launch customer for the 787-10, ALC is thrilled to announce this major lease placement introducing the 787-10 to Korean Air’s fleet, a project we have worked on with Korean and Boeing for a long time. The 787-10 will bring new levels of Korean Air’s outstanding service to its passengers, and provide significant revenue benefits to Korean’s global network,” said John L. Plueger, Chief Executive Officer and President of Air Lease Corporation.

“As we continue to innovate our product offering, the 787 Dreamliner family will become the backbone of our long-haul fleet for many years to come,” said Walter Cho, Chairman of Korean Air. “In addition to 25 percent improved fuel efficiency, the stretched 787-10 offers around 15 percent more space for passengers and cargo than our 787-9s, which will be critical to our long-term business goals.”

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including expected delivery dates. Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission.

About Air Lease Corporation (NYSE: AL)

ALC is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. For more information, visit ALC’s website at www.airleasecorp.com.

About Korean Air

Korean Air is both the flag carrier and the largest airline of South Korea, with global headquarters located in Gonghang Dong, Gangseo-gu, Seoul, South Korea. Korean Air’s international passenger division and related subsidiary cargo division together serve 130 cities in 45 countries, while its domestic division serves 20 destinations. It is among the top 20 airlines in the world in terms of passengers carried and is also the top-ranked international cargo airline. Incheon International Airport serves as Korean Air’s international hub.

Air New Zealand Confirms Order for Eight Boeing 787 Jets

May 28, 2019 / WIL BALDWIN

WELLINGTON (Reuters) – Air New Zealand Ltd said on Monday it has ordered eight Boeing Co 787-10 Dreamliner jets worth $2.7 billion (2.12 billion pounds) at list prices, to be powered by General Electric Co engines, as part of a drive toward increased efficiency.

New Zealand’s flag carrier also trimmed its earnings outlook citing higher fuel prices, and said problems with Rolls-Royce Holdings PLC engines and a moderation in demand growth have impacted its financial and operational performance.

The new plane order confirmed a Reuters report last week that Boeing had beaten out rival Airbus SE, which had proposed the A350 for the hotly contested deal.

The airline, which has Rolls-Royce engines on its existing fleet of 13 787s, announced it had switched to GE engines for the new order.

The 787s will replace eight older 777-200ERs and leave the carrier with an all-Boeing wide-body fleet as well as Airbus A320 family jets for shorter flights.

The order comprises eight long-range 787-10s, with the agreement including an option to increase the number of aircraft to 20.

The deal also gives the airline, which has previously mentioned a goal of flying Auckland-New York non-stop, the option to switch some aircraft to the longer range 787-9s.

“With the 787-10 offering almost 15 percent more space for customers and cargo than the 787-9, this investment creates the platform for our future strategic direction and opens up new opportunities to grow,” Air New Zealand Chief Executive Christopher Luxon said in a statement.

The eight jets will enter the Air New Zealand fleet between 2022 and 2027, the airline said.

“The 787-10 has 95 percent commonality with Air New Zealand’s existing fleet of 787-9s and will provide the airline with added benefits in terms of capacity and overall operations,” Vice President of Boeing Commercial Sales and Marketing for Asia Pacific Christy Reese said.

The 787-10 is the largest member of Boeing’s Dreamliner series, and can serve up to 330 passengers in a standard two-class configuration, about 40 more than the 787-9 airplane.

The airline said the 787 was 25 percent more fuel efficient than the jets it is replacing, and noted that carriers typically receive large discounts on the list price of jets.

HEADWIND

In a separate announcement, Air New Zealand trimmed its 2019 earnings before taxation, saying it now expects to beat NZ$340 million ($223 million). That compared with a forecast range of NZ$340 million to NZ$400 million announced in late March.

The change was due to an additional NZ$25 million headwind from increased jet fuel prices, the company said.

The airline also said Rolls-Royce engine issues – in which components prematurely fail or needed extra checks – impacted 2,500 flights and led to 150 cancellations, affecting its financial performance.

Air New Zealand in March launched a two-year cost reduction programme and said it would defer spending on aircraft by about NZ$750 million ($491 million) as part of a business review.

In February, Air New Zealand slashed domestic fares by as much as 50 percent in a shake-up of its pricing structure in response to the slackening travel market.

(Reporting by Praveen Menon in Wellington, Aditya Soni in Bengaluru and Jamie Freed in Singapore; Editing Richard Pullin and Christopher Cushing)

Virgin Atlantic Posts Annual Loss for Second Year Running

April 10, 2019 / WIL BALDWIN

(Reuters) – Virgin Atlantic on Wednesday reported an annual pretax loss for the second consecutive year, hit by a shaky economy, the higher costs of fuel generated by a weaker British pound and problems with Rolls Royce’s Trent engines.

The airline, the 1980s brainchild of British billionaire Richard Branson, fell back into the red in 2017 after three years of profits, as competition intensified and the weakening of the pound added to already rising fuel costs.

Best known in Europe for the trans-Atlantic planes it flies with Air France-KLM and Delta, Virgin said its loss before tax and exceptional items was 26.1 million pounds ($34.12 million) for the year ended Dec. 31, compared to a loss of 49 million pounds in 2017.

Total revenue rose 5.8 percent to 2.78 billion pounds, as passenger numbers grew just under 5 percent to 5.4 million and revenue per customer rose 1.7 percent.

The company said performance had suffered from economic uncertainty and the weaker pound – which increases costs because fuel is priced in dollars – as well as the well-documented problems of the Trent 1000 engines used on its Boeing 787 jets.

“While a loss is disappointing, our performance has improved in 2018 despite challenging economic conditions and put us on a trajectory for growth and return to profitability,” Chief Executive Officer Shai Weiss said in a statement.

Rolls-Royce on Wednesday agreed to an early inspection of some Trent 1000 TEN engines by regulatory authorities, a week after Singapore Airlines grounded two Boeing 787-10 jets fitted with the units.

British Airways owner IAG in February chose Boeing 777-9s, rather than a competing package from Airbus in part powered by Rolls, underlining the risks to airlines from the engine issues.

Since then the industry has been thrown into chaos by the grounding of Boeing’s new 737 MAX planes after a second fatal crash within six months.

The pound fell 5.6 percent against the U.S. dollar, in 2018 as Britain contended with the political and economic uncertainty generated by its negotiations on leaving the European Union.

Finance chief Tom Mackay said that while economic factors would continue to challenge the carrier in the year ahead, Virgin Atlantic was in a strong cash position.

The results are the company’s first since its acquisition of troubled regional airline Flybe for $2.8 million earlier this year, in a joint bid with Stobart Group and Cyrus Capital.

($1 = 0.7649 pounds)

(Reporting by Noor Zainab Hussain and Pushkala Aripaka in Bengaluru; Editing by Anil D’Silva)

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