BRASILIA (Reuters) – LATAM Airlines will fire “at least” 2,700 workers in Brazil, including pilots, its Brazilian arm said on Saturday, as the bankrupt carrier struggles to cut costs and cope with an industry collapse due to the COVID-19 pandemic.
In a statement, LATAM Brasil said it opened a voluntary redundancy process on Friday which will run through Aug. 4, after which a further minimum 2,700 jobs will be cut.
The announcement followed the breakdown in talks with the SNA union over workers’ pay, the statement said. O Globo and O Estado de S. Paulo newspapers had reported the redundancies earlier on Saturday. LATAM said it pays its pilots and crew more than its rivals in Brazil, and the pandemic has forced it to “match industry practices.”
The layoffs are the latest in efforts to downsize Latin America’s largest airline. Before the novel coronavirus outbreak, the airline had 43,000 workers worldwide, with most of them in Brazil and Chile.
LATAM is seeking to restructure $18 billion in debt. When it filed for U.S. bankruptcy protection in May, it was the world’s largest airline to date to seek an emergency reorganization due to the pandemic.
(Reporting by Jamie McGeever and Marcelo Rochabrun; Editing by Paul Simao)
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)
Nov 6 (Reuters) – Aircastle Ltd said on Wednesday Japan’s Marubeni Corp and Mizuho Leasing Co Ltd had offered to buy the aircraft lessor in a deal valued at $2.4 billion, ending a nearly two-week long strategic review of its business.
Shares of the company rose 16% to trade in line with the offer price of $32 per share. Marubeni, the company’s largest shareholder, has a 29% stake in Aircastle as of Oct. 23 that is currently valued at about $600 million.
Aircastle, which owned and managed 277 aircraft in 48 countries as of Sept. 30, counts American Airlines, Southwest Airlines and United Airlines among its customers.
Airline bankruptcies have increased this year at the fastest ever rate, led by the collapse of India’s Jet Airways, British travel group Thomas Cook and Avianca of Brazil, adding pressure on aircraft leasing companies.
Fitch Ratings said in September that it expects the sector to worsen in the medium term with a potential rise in airline bankruptcies, further aircraft repossessions and increased financing costs. (http://bit.ly/2qrjaG5)
The deal, which is valued at $7.4 billion including debt, is expected to close in the first half of 2020, Aircastle said.
Citigroup Global Markets Inc will serve as financial adviser to Aircastle.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli and Anil D’Silva)
The Italian government is begging U.S. major Delta Air Lines, Inc. (NYSE: DAL) to up the proposed acquisition of a 10% stake in Alitalia for $100 million to at least 15%, according to a report in Italian media.
Loss-making Alitalia has been seeking new investors for more than two years after going into administration in May 2017 after workers rejected a plan to cut jobs and salaries. Successive Italian governments have had to balance the carrier’s massive losses with the need to placate a heavily unionized workforce.
(Reuters) – The collapse of British travel operator Thomas Cook left hundreds of thousands of holidaymakers abroad and forced governments and insurers to coordinate a huge operation to get them home.
FILE PHOTO: Passengers are silhouetted in front of a closed service counter of travel agent Thomas Cook and airline Condor at the airport in Frankfurt, Germany, September 24, 2019. REUTERS/Kai Pfaffenbach
The company ran hotels, resorts and airlines ferrying 19 million people a year to 16 different countries.
Here is a summary of the impact of the collapse in different countries and efforts to salvage parts of the group:
GERMANY
Thomas Cook’s German tour business filed for insolvency on Wednesday in a move aimed at separating its brands and operations from its failed parent, and it said it was in talks with potential new investors.
The German government said it was considering an application for a bridging loan from Thomas Cook Germany, a day after it said it would guarantee a 380 million euro ($418 million) bridging loan for Condor, the British group’s German airline.
The company is in contact with the German foreign ministry, insurers and other partners to get customers home. Zurich Insurance, which provided insolvency cover to Thomas Cook Germany, will cover the costs for those on holiday.
About 97,000 holidaymakers were still stranded on Thursday.
AUSTRIA
Thomas Cook Austria, which belongs to the German unit, also filed for insolvency on Wednesday, with the aim of continuing in business.
THE NETHERLANDS
The Dutch unit of Thomas Cook canceled all travel booked through Thomas Cook Netherlands and subsidiary Neckermann.
A Dutch court on Wednesday granted Thomas Cook Nederland B.V., a Netherlands-based subsidiary, protection from creditors. It employed roughly 200 staff.
POLAND
Thomas Cook’s Polish unit, Neckermann Polska, said on Wednesday that it has filed for insolvency. Poland regional authorities says around 3,600 customers of Neckermann Polska are still abroad.
BELGIUM
Thomas Cook’s Belgian unit ceased carrying passengers on Tuesday and liquidated two businesses, seeking protection from creditors and ultimately a buyer for Thomas Cook Retail Belgium.
It still has some 13,400 customers on holidays abroad.
NORDICS
Several planes operated by Thomas Cook Scandinavian Airlines have not been able to take off because their leasing contracts remained with the British parent, Danish subsidiary Spies said.
It was not immediately clear how the situation would be resolved.
Thomas Cook’s Nordic business said on Monday it would continue to operate as it is a separate legal entity from its London-listed parent and added that it was looking for new owners.
The Nordic business consists of two legal entities, Thomas Cook Northern Europe and Thomas Cook Scandinavian Airlines, and is also known as Ving Group.
The business operates under several brands: Ving in Norway, Spies in Denmark, Tjäreborg in Finland, as well as Ving and Globetrotter in Sweden.
BRITAIN
Emergency flights had brought 14,700 people back to the United Kingdom on 64 flights on Monday, and around 135,300 more were expected to be returned over the next 13 days, Britain’s aviation regulator said.
More than 70 flights were scheduled to operate on Wednesday to bring back 16,500 people.
MEXICO
The collapse of British travel firm Thomas Cook will not have a “significant impact” on Mexico’s tourist industry as it only represents about 0.4% of the sector’s foreign income, the Mexican tourism ministry said on Tuesday.
BULGARIA
Thomas Cook’s collapse poses a serious challenge to Bulgarian tourism, with dozens of Black Sea hotels facing losses totaling tens of millions of dollars as negotiations for the next summer season take place, its tourism minister said on Tuesday.
TUNISIA
Tunisian tourism minister Rene Trabelsi told Reuters that 4,500 Thomas Cook customers are still on holiday in Tunisia.
The British government repatriated about 1,200 tourists via planes sent to Tunisa’s Enfidha airport, and another 4,000 still in Tunisia will return after their holidays.
FRANCE
The French arm of the business said on Tuesday it was asking the French commercial court of Nanterre for creditor protection
Thomas Cook France will hold a meeting of its works council on Thursday about a plan to declare insolvency and to start a recovery procedure.
French organization Entreprises de Voyage said that about 10,000 French tourists could be affected by the bankruptcy.
SPAIN
The collapse has affected 53,000 Britons in Spain, Spanish Acting Tourism Minister Reyes Maroto told reporters.
The ministry has been in touch with German and Swedish authorities to ensure Thomas Cook subsidiaries continue to operate at least for the winter season, she added.
GREECE
A Greek tourism ministry official told Reuters that about 50,000 tourists were affected.
CYPRUS
Cyprus says 15,000 Thomas Cook customers were stranded on the island.
HUNGARY
Thomas Cook’s Hungarian unit Neckermann Magyarorszag said it was continuing its operations and all passengers would be able to return from abroad as planned.
It said its financial situation was stable and its assets were sufficient guarantee that its passengers would not suffer any financial damage. It said passengers should contact its offices directly about upcoming flights.
RUSSIA
Thomas Cook’s Russian tour operator subsidiary, Intourist, said the bankruptcy of Thomas Cook will have no impact on clients, Executive Director Sergei Tolchin told Interfax.
TURKEY
The Turkish Ministry of Tourism said it will provide support for local companies affected by the Thomas Cook collapse.
The head of the country’s Hotelier Federation said about 45,000 tourists from the UK and elsewhere in Europe are in the country.
MOROCCO
Morocco’s tourism ministry said it had created a crisis unit to handle the fallout from Thomas Cook’s collapse. Thomas Cook operated two flights to Marrakesh a week. No official numbers were given.
EGYPT
Thomas Cook operator Blue Sky Group said that 25,000 reservations in Egypt booked up to April 2020 had been cancelled. Blue Sky currently has 1,600 tourists in Egypt’s Hugharda resort.
INDIA
Thomas Cook India said it had been unaffected as it has been a separate entity since August 2012.
PEBBLE BEACH, Calif. (Reuters) – Italian premium sports car maker Ferrari NV will expand sales of easier-driving grand touring cars, but will not try to chase rival Porsche’s annual sales volume, Ferrari Chairman John Elkann told an audience of classic car enthusiasts gathered at this storied golf resort on the Pacific coast.
Elkann also reiterated that Fiat Chrysler Automobiles NV, of which he is chairman, remains open to opportunities to combine with other automakers, but is positioned to remain independent. Fiat Chrysler in May proposed a merger with French automaker Renault SA, but the deal fell apart after the French government intervened and Elkann withdrew the proposed merger.
Fiat Chrysler Chief Executive Mike Manley sent the same message to Renault and other would-be partners earlier this month.
Elkann visited Pebble Beach during the annual Concours d’Elegance, during which wealthy collectors bring some of the world’s rarest vintage automobiles to be admired — and sold — and premium manufacturers showcase exotic new models.
Ferrari is best known for flashy, high performance sports cars. Among fans of vintage Ferraris, more understated GT, or grand touring, cars from the 1960s, some with seating for four people, are among the most popular models on auction blocks and at enthusiast events. GT cars were designed to be comfortable on longer road trips.
Elkann hinted Ferrari will unveil a new GT type car in November. Ferrari has said previously that about 40% of its total sales could come from GT cars by 2022, up from 32% now.
Ferrari has outlined plans to expand revenue to 5 billion euros ($5.54 billion) by 2022 from 3.4 billion euros in 2017. The company has said it plans to add a model called the Purosangue to compete with a growing stable of sport utility vehicles wearing premium sports car brands, such as the Lamborghini Urus.
Rival Porsche AG, a unit of Volkswagen AG, has expanded its sales to more than 250,000 sports cars and sport utility vehicles annually. Elkann said Ferrari is not aiming for Porsche’s level of sales.
A C-27J of the Fuerza Aérea del Peru (FAP) flying over the AndesA C-27J of the Fuerza Aérea del Peru (FAP) flying over the Andes
February 2019, the Peruvian Government officially declares a state of emergency for the northern coastal regions of Peru. An unusual amount of seasonal rainfall has triggered severe flooding and mudslides throughout the northern regions destroying roads, collapsing bridges, and forcing school closures. Entire towns are being evacuated.
The Sistema de Atención Móvil de Urgencia (SAMU) and the Seguro Integral do Salud (SIS) Health Department call in the C-27J Spartan for urgent transportation of patients, including premature babies and badly injured people out of the otherwise unreachable area of Huánuco, 1,900 mt above sea level. A timely action and long hours of activity were key to saving lives and the suite of advanced avionics that equips the Spartan with the increased night vision capability provided by the Night Vision Goggles (NVG), have given pilots the possibility of landing and taking off throughout the night.
The advanced glass-cockpit of a peruvian C-27J Spartan in flight
In 2017 the Peruvian government sent a C-27J in support of disaster relief following the earthquake in Ecuador and again to support evacuations during the raging fires in Chile.
A FAP Spartan during an evacuation of civilians in 2017
The Fuerza Aérea del Peru has successfully flown over 5,000 hours with their Spartans since the first aircraft landed, in March 2015, at the International Jorge Chavez airport in Lima, home of the Grupo Aereo N°8 (transport wing).
In these 5,000 flight hours the C-27J has bravely met the most challenging conditions moving comfortably between coastal areas at 19°C to forests at 38°, to mountains at 5°C, landing smoothly on semi-prepared strips at either 100 feet or 11,500 feet above sea level. The versatility of the aircraft was also challenged by the diversity of missions required: from delivering humanitarian assistance to medical evacuations, monitoring of illegal activities, and support to firefighting duties in areas that would otherwise be reached only by river navigation in over 6 days!
Take-off with high rate of climb from a small airport in Peru
To keep this kind of fleet availability in such demanding operational scenarios, you need to rely on a very high standard of customer support guaranteed by non-stop commitment, highly specialised personnel on-site, dedicated logistics and very efficient remote technical assistance service.
FILE
PHOTO: Bikes by a bike rental service of Icelandic airline WOW air are
seen in Reykjavik, Iceland, August 5, 2017. REUTERS/Michaela Rehle/File
Photo
(Reuters)
– Iceland’s WOW air became the latest budget airline casualty on
Thursday, halting operations and cancelling all future flights after
efforts to raise more funds failed.
WOW,
which focussed on low-cost travel across the Atlantic, advised stranded
travellers to seek flights with other airlines. It flew a total of 3.5
million passengers last year.
“This
is probably the hardest thing I have ever done but the reality is that
we have run out of time and have unfortunately not been able to secure
the funding of the company,” WOW CEO and founder Skuli Mogensen wrote in
a letter to the company’s 1,000 employees.
“I will never be able to forgive myself for not taking action sooner,” he added.
WOW
had earlier postponed flights on Thursday as it entered what it had
hoped were the final stages of an equity raising with a group of
investors.
“My
flight from Boston has been cancelled. Having a hard time getting
through to anyone on the phone. Can you help me at all?” Twitter user
Marc Solari wrote.
WOW replied with an apology and offer of further assistance.
WOW
is the latest budget airline to collapse as the European airline sector
grapples with over-capacity and high fuel costs. Recent failures
include Britain’s Flybmi, Nordic budget airline Primera Air and Cypriot
counterpart Cobalt.
“RESCUE FARES”
Other
airlines including, Icelandair, Easyjet and Norwegian stepped in
offering discounted ‘rescue fares’ to stranded passengers, according to
the Icelandic Transport Authority
WOW has been pursuing different avenues to raise money over the past few months.
It
ended talks with rival Icelandair last Sunday while veteran low-cost
airline investor Bill Franke also had cancelled a proposed investment
through private equity fund Indigo Partners.
Icelandair shares traded up 13 percent percent at 1215 GMT after the failure of a competitor.
Founded
in 2011 by entrepreneur Mogensen, WOW used smaller single-aisle planes
to fly between Iceland and many destinations in the United States and
Europe.
Its
website had advertised flights from London to cities such as New York
and Boston for as little as 150 pounds, although the journey went via
the Icelandic capital Reykjavik.
Norwegian
Air has a little over half of the market share in the fast-growing,
low-cost, long-haul transatlantic market, while WOW controlled a quarter
in 2018.
There are fears of a knock-on effect on Iceland’s important tourism industry.
Around
30 percent of tourists visiting Iceland last year flew with WOW and the
collapse could trigger a 16 percent drop in tourists this year,
research from Icelandic bank Arion showed.
( By Stine Jacobsen and Tommy Lund; editing by Darren Schuettler/Keith Weir)
Barcelona, Spain – December 06, 2018: WOW Air Airbus A321 approaching to El Prat Airport in Barcelona, Spain.
