Tag: cancelled

Cash-Strapped El Al Israel Airlines Raises $148 Million

September 17, 2020 / WIL BALDWIN

TEL AVIV, Sept 16 (Reuters) – Cash-strapped El Al Israel Airlines raised $148 million in a government-mandated share offering on Wednesday that will enable it to receive a state bailout package.

In a regulatory filing in Tel Aviv, Israel’s flag carrier said it sold 753.35 million new shares at 0.671 shekels ($0.1963) each.

Its stock earlier had closed 5.6% higher at 0.774 shekel.

Demand reached 654 million shekels while El Al accepted 505 million shekels ($148 million) worth.

El Al did not give further details of the offering which took the total number of shares outstanding to above 1.2 million.

But Israeli media reported that Eli Rozenberg had obtained a controlling stake via the offering, with 44.9% of the airline’s shares. He is the son of American businessman Kenny Rozenberg, CEO of New York-based nursing home chain Centers Health Care.

Rozenberg in July had offered to funnel $75 million into the airline in return for a 44.99% stake.

An El Al spokesman said he could not immediately confirm the reports about Rozenberg’s bid.

Newspapers said the state’s overall stake would now be as much as 15.5%, while the current controlling shareholder – Knafaim Holdings – would see its stake fall to about 15%.

Israel’s Finance Ministry said it paid $34 million for its shares and that although it pledged a $150 million safety net, it was barely needed.

“The results of the offering express investors’ trust in the company’s business plan and in state aid,” it said in a statement.

El Al has been hit hard by the coronavirus outbreak and the government has for months offered to intervene to help it avoid bankruptcy.

That has included mandating a share offering and steep spending reductions to receive a $250 million loan that will be 75% backed by the government and used partly to pay back customers whose flights were cancelled.

The airline has reported losses for two years running, racked up debt to renew its fleet, and suspended flights when Israel closed its borders and furloughed most of its employees.

($1 = 3.4185 shekels) (Reporting by Rami Ayyub and Steven Scheer; Editing by Andrew Cawthorne)

Airbus First-Half Deliveries Hit 16-Year Low Despite June Bounce

July 8, 2020 / WIL BALDWIN

Airbus logo at the entrance of the Airbus facility in Bouguenais

PARIS (Reuters) – Airbus <AIR.PA> deliveries rose 50% in June compared with May and reached their highest level since the coronavirus crisis spread to Europe in March, but the accelerating recovery failed to prevent first-half deliveries from sliding to a 16-year low.

Figures released by the European planemaker late on Wednesday underscored a collapse in aerospace industry fortunes since early this year, hours after Airbus workers facing job cuts staged their first strike in 12 years.

Deliveries rose to 36 aircraft in June from 24 in May and a low of 14 in April. For the first half, deliveries fell by 49% to 196 planes compared with 389 in the same period last year.

Airbus has said it faces an average 40% drop in business over the next two years, forcing it to cut 15,000 jobs, or 11%, of its workforce. Unions oppose compulsory cuts.

Facing a slump in demand, planemakers have been urging airlines to take planes that have already been built in return for agreement to defer others due at later dates.

Some aircraft, however, are going straight into storage because travel demand is recovering slowly, experts say.

June’s figures suggested negotiations were partially paying off as Airbus handed over three wide-body A350-900 aircraft for European airlines despite a glut of large jets.

But deliveries of many other wide-body aircraft at Airbus and U.S. rival Boeing <BA> remain hampered by weak demand for long-haul travel as a result of the crisis.

Sources said last month that Airbus had sent out dozens of default notices to airlines in a bid to keep deliveries moving.

With airlines focusing on survival, Airbus posted no orders for a second month.

Gross orders so far this year remained at 365 jets, but net orders adjusted for cancellations slipped by one unit to 298, after lessor Avolon cancelled one of 10 A330neos it has ordered.

(Reporting by Tim Hepher and Benoit Van Overstraeten; Editing by Chizu Nomiyama and Leslie Adler)

Norwegian Air Cancels Boeing Orders, Seeks Compensation

June 30, 2020 / WIL BALDWIN

OSLO (Reuters) – Norwegian Air <NAS.OL> has cancelled orders for 97 Boeing <BA.N> aircraft and will claim compensation from the U.S. plane maker for the grounding of the 737 MAX and for 787 engine troubles that hit its bottom line, the Oslo-based carrier said on Monday.

The airline cancelled 92 of the 737 MAX jets, five 787 Dreamliners and so-called GoldCare service agreements related to both aircraft, just as Boeing on Monday began a crucial set of flight tests of the 737 MAX in an effort to gain regulatory approval for it to return to the skies.

“Norwegian has in addition filed a legal claim seeking the return of pre-delivery payments related to the aircraft and compensation for the company’s losses related to the grounding of the 737 MAX and engine issues on the 787,” the airline said.

Norwegian did not specify the amount it would seek to claim from Boeing, which it had been in talks with about compensation, and was not immediately available for comment.

Boeing said it was working with Norwegian on a path forward in a challenging time as it was with other operators but it would not comment on commercial discussions.

The problematic Trent 1000 engines, used on the Dreamliners, were made by Rolls-Royce <RR.L>, which Norwegian has been in a dialogue with about compensation. Monday’s statement did not say whether Norwegian would file a legal claim against Rolls-Royce.

The European budget carrier, which revolutionised transatlantic travel by offering cheap fares, was struggling before the COVID-19 pandemic brought the airline industry to its knees.

One reason was the grounding of the 737 MAX in March 2019 following the second of two fatal crashes that together killed 346 people. Norwegian had 18 MAX passenger jets in its 163-aircraft fleet at the time.

Originally a small regional airline in Scandinavia, Norwegian made its breakthrough on the global stage with a multi-year order in 2012 for up to 372 aircraft, of which 222 were from Boeing and 150 from Airbus <AIR.PA>.

(Reporting by Gwladys Fouche and Terje Solsvik; Additional reporting by Eric M. Johnson in Seattle; Editing by Leslie Adler and Christopher Cushing)

FILE PHOTO: Norwegian Air Sweden Boeing 737-800 plane SE-RRY lands in Riga International Airport in Riga

EasyJet Founder Says Will Not Inject Fresh Equity Into Company

April 6, 2020 / WIL BALDWIN

FILE PHOTO: Easyjet founder Stelios Haji-Ioannou speaks at a media event to celebrate 20 years in business at Luton Airport

(Reuters) – Stelios Haji-Ioannou, the founder of easyJet Plc <EZJ.L>, has warned that he will not inject any fresh equity into the airline until it terminates a contract with Airbus SE <AIR.PA> for 4.5 billion pounds ($5.50 billion), according to a letter https://easy.com/wp/wp-content/uploads/2020-04-05-stelios-media-statement-on-easyjet-and-airbus-for-release-6april20-final.pdf posted on EasyGroup’s website.

In his letter, Haji-Ioannou has also called for removal of easyJet’s Chief Finaicial Officer Andrew Findlay, after earlier calling for a board meeting on a vote to remove Andreas Bierwirth as a director, which was rejected by easyJet.

“If this 4.5 billion pound liability to Airbus is preserved – and not cancelled – by the easyJet board then, I regret to report, easyJet will run out of money around August 2020, perhaps even earlier,” the founder said in his letter.

“I will certainly not be throwing good money after bad. For the avoidance of doubt, I will not inject any fresh equity in easyJet whilst the Airbus liability is in place.”

He also stated that he will continue to call for the removal of more directors every time the company delays the vote.

He also wants easyJet to reduce its fleet size to 250 aircraft from 350, adding that the airline will not need any more additional new planes for many years to come.

(Reporting by Juby Babu in Bengaluru; editing by Diane Craft)

La Compagnie Takes Measures Due to Coronavirus COVID-19

March 16, 2020 / WIL BALDWIN

MEASURES TAKEN BY LA COMPAGNIE

Since the outbreak of the Coronavirus COVID-19, our teams have been doing everything possible to guarantee the safety and health of our passengers and cabin crew.

We regularly consult all relevant international authorities to make sure that we follow – and even surpass – their instructions on health precautions related to the effort to prevent the spread of the Coronavirus.

Aircraft cleaning procedures, which were already of the highest standard given our all-business class offer, have been reinforced to guarantee a safe and relaxing experience for our passengers. Our brand-new A321neo also features a state-of-the-art air circulation system that renews cabin air every 3 minutes.

COMMERCIAL POLICY

In light of President Trump’s recent restrictions on travel between Europe and the U.S., effective March 13^th at midnight for a period of 30 days, we have been forced to reassess our flight schedule for the upcoming months.

We must suspend all scheduled flights from March 18^th to April 12^th, 2020,resuming with one daily flight between Paris and New York from April 13^th once the restrictions are lifted.

The launch of the seasonal route from New York to Nice is pushed back to June 1^st, 2020.

In the unlikely event that your flight has been cancelled by La Compagnie in light of the Covid-19 situation, you will be notified directly via the contact details provided in your booking and will be offered solutions to modify, postpone or cancel your flights.

Any passengers with a flight scheduled between now and May 31^st, 2020 who would like to postpone their departure may do so, regardless of fare conditions and at no charge, or receive a non-refundable but transferrable voucher (valid for 12 months).

Amtrak Has Cancelled Winter Park Express Service

March 15, 2020 / WIL BALDWIN

Amtrak Has Cancelled the Winter Park Express service for the remainder of the 2019 – 2020 ski season.

Customers with reservations on trains that are being modified will be contacted and typically be accommodated on trains with similar departure times or another day.

Amtrak is waiving change fees on all existing or new reservations made before April 30, 2020. To change reservations, log in to your account or go to Modify Trip on Amtrak.com, or find your reservation from your account on the home screen in the Amtrak app. A fare difference may apply to your new itinerary. If you want to cancel your reservation, you must call 800-USA-RAIL (not available via Amtrak.com or the app).

British Airways Pilots to Strike for 3 Days in September

August 24, 2019 / WIL BALDWIN

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)

UK Regional Airline Flybmi Collapses, Blames Brexit

February 17, 2019 / WIL BALDWIN

LONDON (Reuters) – British regional airline Flybmi has gone into administration and has cancelled all flights with immediate effect, the company said in a statement on Saturday, blaming Brexit uncertainty as one of the reasons for its collapse.

A spokesperson for British Midland Regional Ltd said the company had taken the decision due to increased fuel and carbon costs and to uncertainty arising from Britain’s plans to leave the European Union on March 29.

The airline, based in the English East Midlands, operates 17 planes flying to 25 European cities. It employs 376 people in Britain, Germany, Sweden and Belgium.

“We sincerely regret that this course of action has become the only option open to us, but the challenges, particularly those created by Brexit, have proven to be insurmountable,” the company said.

Spikes in fuel and carbon costs had undermined efforts to move the airline into profit.

It added: “Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence around bmi’s ability to continue flying between destinations in Europe.”

The airline, which said it carried 522,000 passengers on 29,000 flights in 2018, advised customers with bookings to contact their bank or payment card issuer to obtain refunds.

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