Cathay Pacific aircraft are seen parked on the tarmac at the airport, following the outbreak of the new coronavirus, in Hong Kong
SYDNEY (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd reported a record HK$9.87 billion ($1.27 billion) first-half loss and said it did not expect a meaningful recovery in passenger demand for some time due to the coronavirus pandemic.
The figure was in line with the HK$9.9 billion forecast it had flagged last month and included HK$2.47 billion of impairment charges.
Revenue plunged 48.3% to HK$27.7 billion in the six months ended June 30 as it slashed passenger flying to a barebones schedule due to lower demand and border restrictions, though it added more cargo-only flights as freight yields rose 44.1%.
The airline, which received a $5 billion rescue package led by the Hong Kong government, has so far refrained from large-scale job cuts but has warned it is reviewing all aspects of its business model with an update expected by the fourth quarter.
“Inevitably this will involve rationalisation of future planned capacity compared to pre-crisis plans, taking into account the market outlook and cost structure at that time,” Chairman Patrick Healy said in a statement on Wednesday.
It has rearranged its aircraft order book with Airbus SE to delay deliveries, is in advanced talks with Boeing Co to do the same and has begun sending one-third of its fleet outside Hong Kong for storage in less humid conditions.
The airline said last month that it had reduced its monthly cash burn to about HK$1.5 billion from between HK$2.5 billion and HK$3 billion while maintaining a minimal flying schedule.
Cathay is expected to report a full-year loss of around HK$13.6 billion, according to the average of 13 analysts polled by Refinitiv before it released its half-year results.
The airline’s shares had surged 9.3% on Wednesday ahead of the earnings announcement, which was made while trading was suspended for the market’s lunch break.
“It is laggard buying on some traditional economy stocks,” Steven Leung, a sales director at UOB Kay Hian, said of the rise.
($1 = 7.7506 Hong Kong dollars)
(Reporting by Jamie Freed; additional reporting by Donny Kwok in Hong Kong; Editing by Himani Sarkar)
NEW YORK, Nov 19 (Reuters) – A former British Airways executive who oversaw the carrier’s operations at New York’s John F. Kennedy International Airport has been indicted for accepting bribes to help a ground handling company win contracts, New York’s attorney general said on Tuesday.
The charges announced by Attorney General Letitia James against Steven Clark, who she said directed British Airways operations at JFK Terminal 7, arose from “Operation Greased Runway,” a probe into contracting and procurement at JFK.
John Kinsella, a former chief executive of Ground Services International (GSI) accused of making improper payments to Clark, was also charged in the case.
Both defendants pleaded not guilty, according to their respective lawyers. British Airways, part of International Consolidated Airlines Group SA, was not charged.
James said Clark received more than $5 million and a secret 5% stake in GSI over several years from Kinsella, in exchange for promoting that company’s services.
According to court papers, payments were concealed from Britain’s flag carrier with fake invoices, and sometimes laundered through companies that Clark or Kinsella created.
James said Clark also received improper sums from another vendor, while Kinsella paid an executive who helped run JFK Terminal 1, which houses several airlines, to win his support.
Clark, 61, of New York, and Kinsella, 59, of Naples, Florida, were each charged with several counts, including bribery and money laundering, and arraigned before a New York state judge in Queens.
“Mr. Clark is innocent of the charges to which he pleaded not guilty, and expects to be vindicated,” Clark’s lawyer Kevin O’Brien said in a phone interview.
Kinsella’s lawyer Brian Legghio said his client was also innocent, looked forward to clearing his name, and had been awarded his JFK contacts on merit and based on his reputation. He said Kinsella sold GSI three years ago.
GSI agreed with James’ predecessor Barbara Underwood last December to a $12.3 million settlement related to the probe.
“Today’s indictment sends a clear massage to airline companies and airport vendors: pay-to-play schemes will not fly in New York,” James said in a statement.
(Reporting by Jonathan Stempel in New York Editing by Tom Brown)
PARIS, Sept 5 (Reuters) – French judges have dropped charges against Air France and Airbus over a mid-Atlantic plane crash in 2009 that killed all 228 people on board, blaming the pilots for losing control of the plane.
In their conclusions, seen by Reuters, the judges said the pilots of the Airbus A330 had failed to process all the warnings and instrument readings provided by the aircraft.
The plane plunged into the ocean en route from Rio de Janeiro to Paris after entering an aerodynamic stall and falling from an altitude of 38,000 feet during a storm, its engines running but its wings losing lift.
“The direct cause of the accident is the crew’s loss of control of the aircraft’s trajectory,” the judges determined.
Other crews, faced with similar situations, had successfully maintained control of their aircraft, their ruling said.
The judges overruled the prosecutors investigating the case, who had recommended that Air France stand trial over the crash in July.
In their 2012 report, French civil accident investigators found the startled crew of AF447 mishandled the loss of airspeed readings from pitot sensors blocked with ice and pushed the jet into a stall by holding the nose too high. The report also cited poor training and the lack of a clear cockpit display for speed problems.
The three-year civil investigation was not designed to cast blame, which was the purpose of the separate judicial probe culminating in the decision on Thursday.
A lawyer representing the families of victims said an appeal against the judges’ decision would be lodged immediately.
“The judges have just written in black and white that the icing of the pitot sensors had nothing to do with the accident. It’s nonsense,” Sebastien Busy told Reuters. “If the pitot sensors hadn’t iced up, there wouldn’t have been an accident.”
The accident was the deadliest in the history of Air France and in the history of the A330.
A decade later, the aviation industry is still implementing lessons learned from the crash. Changes have focused on training, cockpit procedures and the tracking of aircraft in remote zones.
It took salvage teams nearly two years to locate the A330’s flight recorders on the ocean floor.
(Reporting by Sophie Louet and Emmanuel Jarry Writing by Richard Lough; Editing by Elaine Hardcastle)
Starting today, we’re launching Tesla Insurance, a competitively priced insurance offering designed to provide Tesla owners with up to 20% lower rates, and in some cases as much as 30%. Tesla Insurance offers comprehensive coverage and claims management to support our customers in California, and it will expand to additional U.S. states in the future.
Because Tesla knows its vehicles best, Tesla Insurance is able to leverage the advanced technology, safety, and serviceability of our cars to provide insurance at a lower cost. This pricing reflects the benefits of Tesla’s active safety and advanced driver assistance features that come standard on all new Tesla vehicles.
Tesla owners in California can purchase a policy in as little as one minute via tesla.com/insurance. For new vehicle orders, customers can request a quote prior to delivery once a VIN has been assigned to their Tesla Account.
Tesla Insurance offers a convenient monthly payment with no hidden fees or charges. Customers may cancel or change their Tesla Insurance policy at any time.
American Airlines planes stand at Dallas-Fort Worth International Airport in Grapevine, Texas, on April 6, 2018. MUST CREDIT: Bloomberg photo by Patrick T. Fallon.
Terminal F projected to open as soon as 2025, Terminal C to be upgraded
DFW AIRPORT, Texas — Dallas Fort Worth International (DFW) Airport and American Airlines have announced plans to develop a sixth terminal, providing a long-term commitment from the airline and opportunities for businesses and customers in the fastest growing region in the United States.
The plans call for DFW to invest up to $3 to $3.5 billion in terminal improvements, including the construction of Terminal F and enhancements to Terminal C. The identified site south of Terminal D provides significant flexibility for phasing in the number of gates for Terminal F, with a long-term projection of up to 24 gates, as demand for additional facilities is warranted.
Design work for Terminal F will begin immediately. DFW and American will explore several different options for the layout of the Terminal F site. DFW and American expect the details to be finalized as part of a new airlines lease agreement for DFW that is being negotiated. DFW and American anticipate the investment to be financed by bonds and repaid through airlines rates and charges over the life of the bonds.
“Today’s announcement sets the stage for DFW Airport’s next 50 years,” said Sean Donohue, CEO of DFW Airport. “The new Terminal F and the expansion that could follow will provide the region with the growth it needs to compete with international business centers. The Airport is growing faster than ever, and it needs to keep pace with the Dallas-Fort Worth economy to provide jobs and connections for businesses and families. We’re grateful to Dallas Mayor Mike Rawlings, Fort Worth Mayor Betsy Price and Board Chairman Bill Meadows for their leadership. I want to especially recognize American for its commitment to DFW Airport. We look forward to working together to deliver what will be an efficient, modern terminal with a state-of-the-art customer experience.”
“This is an exciting day for American and our more than 31,000 team members who call Dallas-Fort Worth home. American enjoys a wonderful relationship with the City of Fort Worth, the City of Dallas and DFW Airport, and we thank Mayor Price, Mayor Rawlings, and Sean and the entire DFW team for being such great partners. DFW is American’s largest hub and a central gateway to our extensive international and domestic network. The plans we’re announcing today will allow for the continued growth of DFW and ensure the airport remains a premier gateway for American for many more years to come.”
— Doug Parker, American Airlines Chairman and CEO
“We look forward to accommodating the continued growth of our city and the region through infrastructure improvements and expansion at DFW Airport,” said Fort Worth Mayor Betsy Price. “We’re glad to see DFW’s anchor carrier, American Airlines, headquartered in Fort Worth, collaborate with the Airport to take this area to new heights. This new terminal will further fuel economic development and job growth in our region.”
“This is one of the most significant announcements in my eight years as mayor,” said Dallas Mayor Mike Rawlings. “The fact that American Airlines believes in the DFW International Airport Board and management enough to make this tremendous investment in the future of the Airport is something we should all celebrate. This will further solidify DFW’s standing as one of the best international airports in the world.”
The design of Terminal F is expected to accommodate a changing aviation industry as DFW utilizes innovative technologies to facilitate the movement of customers, maintain cost efficiencies for airlines and improve operational performance.
Terminal C is one of the Airport’s original terminals and opened in 1974. DFW and American plan to significantly improve the customer experience at Terminal C, bringing it in line with Terminals A, B and E, on which renovations were completed in 2018. Those renovations included redesigned check-in areas, larger security checkpoints, expanded concessions spaces, and improved lighting and flooring.
DFW Airport welcomed a record 69 million customers in 2018, and the Airport anticipates more passengers and air service to be added in the next two years than in the past two decades. In 2018, DFW announced 28 new destinations, giving it a larger domestic footprint than any other U.S. airport. Customers also have access to more than 60 international destinations from DFW, with double the number of European destinations and frequencies since 2015.
Over the past several years, American has expanded with additional DFW service, and by June 2019, the airline will operate more than 900 daily flights from the Airport. In total, customers have access to more than 230 nonstop destinations on American from DFW.
A 2015 economic impact study indicates DFW Airport contributes more than $37 billion to the Dallas-Fort Worth economy, with nearly 60,000 jobs at the Airport and more than 228,000 jobs created across the region. In 2018, DFW Airport awarded more than $150 million in contracts to small, women- and minority-owned businesses, and concessions agreements generated more than $155 million in revenues for disadvantaged businesses.
