Tag: compete

Air New Zealand Lays Off 3,500 Employees as Virus Halts Travel

March 31, 2020 / WIL BALDWIN

(Reuters) – Air New Zealand <AIR.NZ> said on Tuesday nearly a third of its employees, about 3,500, will be laid off in the coming months, as it grapples with severe global travel curbs due to the coronavirus that has forced it to cancel nearly all flights.

The national carrier, which employs 12,500 people, said the announced number of layoffs was a “conservative” assumption, and that it could rise if the domestic lockdown and border restrictions were extended.

Large scale layoffs of its global staff will start this week, the company said.

“Unfortunately, COVID-19 has seen us go from having revenue of NZ$5.8 billion to what is shaping up to be less than NZ$500 million annually based on the current booking patterns we are seeing,” Chief Executive Officer Greg Foran said in an email to staff and customers.

“This has the potential to be catastrophic for our business unless we take some decisive action.”

Air New Zealand is an example of the dire situation facing airlines across the world due to curbs on travel to control the spread of the virus.

“We have had to cut more than 95 percent of our flights here in New Zealand and around the world. The only flights remaining are in place to keep supply lines open and transport options for essential services personnel,” Foran added.

Earlier in March, the New Zealand government offered the airline a NZ$900 million ($540.99 million) lifeline to keep it in the air.

The company also noted that “every dollar we use from this loan facility comes with interest (more than double current interest rates for a household mortgage) and must be re-paid.”

“Burdening our airline with massive debt would significantly lessen our ability to compete with airlines emerging from COVID-19,” said Foran.

He also said that in a year’s time he expects staffing levels to be 30% smaller than it is currently.

($1 = 1.6636 New Zealand dollars)

(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Shinjini Ganguli)

FILE PHOTO: An Air New Zealand Airbus A320 plane takes off from Kingsford Smith International Airport in Sydney

TAROM Takes Delivery of First of Nine ATR 72-600

February 19, 2020 / WIL BALDWIN

TAROM, Romania’s national flag carrier, today took delivery of its first ATR 72-600 aircraft, the market-leading product of the world’s number one regional aircraft manufacturer. With a brand new livery, this aircraft is the first of a leasing contract with leading regional aircraft lessor NAC, for nine ATR 72-600.

TAROM has been very successful in its domestic market operations by using ATR aircraft – both ATR 42‑500 and ATR 72-500 – to compete with low cost carriers. When this major fleet upgrade is completed, by the end of 2020, the Romanian carrier will offer an additional 330,000 seats every year, at the same operating cost as its previous seat level, improving short haul connectivity in Romania. With ATR 72-600 burning 40% less fuel and emitting 40% less CO2 than similar-sized regional jets, TAROM will support the development of local and more isolated communities in a responsible way, while further consolidating their position in the market.

TAROM Chief Executive Officer George Barbu said: “We are looking forward to starting operations with our brand new ATR 72-600, the only aircraft on the regional market to meet our ambitious targets in terms of efficiency, modern technology and environmental performance. We are going to be able to develop new routes and increase frequency and seat availability, whilst offering the highest levels of comfort and technology.”

NAC Chairman, Martin Møller added: “The economics of the ATR 72-600, its modernity, passenger comfort and flexibility, along with proven environmental credentials make it an attractive asset, for both lessors and airlines. We thank TAROM for the confidence they have placed in NAC and we look forward to strengthening our relationship in the future.”

Stefano Bortoli, Chief Executive Officer of ATR commented: “Renewed confidence from a loyal customer is the best possible endorsement for an aircraft manufacturer. Especially when the decision is made after a vigorous evaluation of the existing solutions on the market – we know that our product is working for our customers. All regions deserve the same opportunity to be part of a connected world and ATR aircraft show unrivalled performance in connecting people and businesses responsibly.”

TAROM and ATR have been working together for 20 years. This major fleet upgrade will also enable the airline to benefit from state-of-the-art avionics, including glass cockpit, LPV and V-NAV capabilities, for safe, flexible and efficient operations.

China’s Sixth Prototype C919 Jet Completes First Test Flight

December 27, 2019 / WIL BALDWIN

BEIJING (Reuters) – The sixth prototype of China’s home-built C919 narrowbody passenger plane completed its first test flight on Friday, marking a milestone in the programme’s testing schedule as China races to compete with Airbus SE and Boeing Co.

The sixth prototype is the last test plane its manufacturer, the Commercial Aircraft Corp of China Ltd (COMAC), has planned for the programme and was scheduled to fly before the year-end. Currently, there are five test planes that are conducting test flights elsewhere in the country.

The maiden flight on Friday from Shanghai lasted two hours and five minutes, COMAC said in a press release, adding that the jet will be conducting more test flights with a focus on cabin, lighting and external noises.

COMAC has already started production of aircraft parts which will be used for the first batch of aircraft deliveries, it said.

The state manufacturer is aiming to obtain Chinese certification for the C919 in 2021, but the date was subject to regulatory approval and the aircraft’s safety remains a top priority, according to COMAC officials.

He Dongfeng, the Communist Party boss of COMAC, wrote in a state-owned newspaper in December that aircraft safety is key to the survival of COMAC.

Designed to compete directly with the Airbus 320 and the Boeing 737 families in the market for jets with around 150 seats, the C919 is the speartip of China’s efforts to break a powerful decades-old Western duopoly.

The Boeing 737 MAX remains globally grounded following two fatal crashes that killed a total of 346 people.

(Reporting by Stella Qiu and Brenda Goh; Editing by Muralikumar Anantharaman)

Boeing Out of Minuteman Missile Replacement Competition

December 14, 2019 / WIL BALDWIN

The Boeing logo is displayed on a screen, at the NYSE in New York

WASHINGTON (Reuters) – Boeing Co <BA> has decided not to compete as a prime contractor to replace the Pentagon’s aging U.S.-based Minuteman III missile system, paving the way for Northrop Grumman Corp <NOC> to win a contract worth tens of billions of dollars.

Friday marked the deadline to submit proposals to continue work on the replacement of the nearly half-century-old intercontinental ballistic missile (ICBM) system as the military embarks on a costly modernization of its aging atomic weapons.

Boeing said in a statement that it was disappointed it was unable to submit a bid. Northrop said it had submitted its proposal. No other bidders were expected.

Boeing’s decision not to enter a bid as a prime contractor had been foreshadowed this summer in a letter from the chief executive of Boeing Defense Space and Security, Leanne Caret, to Air Force leadership, saying Northrop’s 2018 purchase of solid rocket motor maker Orbital ATK might make it difficult for Boeing to compete on cost.

Orbital is the top producer of the solid fuel rocket motors generally used in Minuteman III and similar missiles.

Upgrading the U.S. nuclear force was expected to cost more than $350 billion over the next decade as the United States works to replace its bombs, nuclear bombers, missiles and submarines. Some analysts estimated the cost of modernization at $1 trillion over 30 years.

The Pentagon’s Cost Assessment and Program Evaluation office has said the total cost to replace Minuteman III could top U.S. $85 billion.

In 2017, the Air Force awarded https://www.reuters.com/article/us-boeing-pentagon-gbsd/u-s-air-force-awards-contracts-to-boeing-northrop-for-icbm-replacement-idUSKCN1B12H3 Boeing and Northrop Grumman separate contracts for the early engineering phase of the program.

(Reporting by Mike Stone; editing by Jonathan Oatis, Rosalba O’Brien and Richard Chang)

Ryanair Tries to Delay Operations Chief’s Flight to easyJet

December 2, 2019 / WIL BALDWIN

FILE PHOTO: Chief Operating Officer Bellew of Ryanair attends a news conference in Frankfurt

DUBLIN (Reuters) – Ryanair <RYAAY> heads to court on Tuesday to try to prevent operations chief Peter Bellew from joining arch-rival easyJet <ESYJY> until 2021.

Europe’s biggest budget airline said in July that the former Malaysia Airlines boss would step down at the end of the year.

But after easyJet announced Bellew’s appointment as its new chief operations officer a week later, Ryanair launched legal proceedings in Ireland’s High Court.

Ryanair argues that all its senior executives commit to non-compete clauses barring them from joining a competitor for 12 months after leaving the Irish airline.

Ryanair boss Michael O’Leary told reporters in September that the only issue was whether Bellew, who is currently working out his notice, can join easyJet on Jan. 1, 2020, or Jan. 1, 2021, a full 18 months after easyJet announced his appointment.

An easyJet spokeswoman declined to comment on the case. Bellew has not commented on the case since Ryanair initiated proceedings.

O’Leary has said the timing of Bellew’s switch is sensitive because of the problems Ryanair is currently having with Boeing’s <BA> grounded 737 MAX jet, which have slowed down its growth plans.

Ryanair is one of Boeing’s biggest customers for the MAX 737, with 210 on order, and the airline said last month it expected a further delay to deliveries that could leave it without the new jets next summer.

Bellew left his role as CEO of Malaysia Airlines two years ago to return to Ryanair where he was director of flight operations before leaving for Kuala Lumpur in 2014.

Tasked with tackling a pilot revolt that resulted in Ryanair’s first ever strikes, Bellew has helped patch up relations with staff and agree deals on pay and conditions with trade unions that have quelled the unrest.

An Irish national, Bellew described his return to Ryanair in 2017 as “a form of national service” to help what he described as Ireland’s greatest company. Some observers had seen Bellew as a possible future Ryanair chief executive.

(Reporting by Padraic Halpin; Editing by Mark Potter)

Chinese Antitrust Regulator Approves Boeing-Embraer Deal

November 21, 2019 / WIL BALDWIN

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BRASILIA (Reuters) – A Chinese antitrust regulator has approved Boeing Co’s <BA> deal to buy a controlling stake in the commercial jet division of Brazilian planemaker Embraer <ERJ>, according to a statement on the regulator’s website.

The Boeing-Embraer deal appears on a list dated Nov. 19 of transactions “approved unconditionally” that is posted to the website of the Chinese State Administration for Market Regulation’s anti-monopoly department.

The document gives no further details, only saying that the case was adjudicated 10 days earlier on Nov. 9.

Boeing, the world’s largest planemaker, has been seeking to finalize its purchase of 80% of Embraer’s commercial jet division in a bid to compete with Europe’s Airbus <AIR.PA> in the market for planes with fewer than 150 seats.

China’s approval comes as EU regulators have delayed a decision until both companies provide additional documents, which Embraer has said it is trying to do as soon as possible.

The companies originally said they expected to close the deal this year.

(Reporting by Jake Spring; Editing by Bill Berkrot)

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Boeing, Air Astana Announce Intent To Buy 30 737 MAX Airplanes

November 19, 2019 / WIL BALDWIN

Flag carrier of Kazakhstan intends to order the 737 MAX for its new low-cost airline FlyArystan

DUBAI, United Arab Emirates, Nov. 19, 2019 /PRNewswire/ — Air Astana intends to order 30 Boeing 737 MAX 8 airplanes to serve as the backbone of its new low-cost airline FlyArystan, the Kazakh flag carrier and Boeing announced at the Dubai Airshow. The companies today signed a letter of intent for the 30 airplanes with a list price value of $3.6 billion.

Since beginning operations in May 2002, Air Astana has steadily grown its business from its hubs in Almaty and Nur-Sultan (formerly Astana), sprouting a network that serves major cities across Kazakhstan, Central Asia, Asia, China, Europe and Russia. It operates a growing fleet that includes the Boeing 757, 767 and the Airbus A320 family.

In May, Air Astana launched FlyArystan to better compete in the growing low-cost segment. The company says the new airline has seen strong ticket sales in just the first few months of operation. The plan is to expand the fast growing domestic network, with international services to Moscow commencing next month.

“Since its launch in May this year, FlyArystan has exceeded all expectations and it is clear that low cost air travel has a great future in Kazakhstan and Central Asia,” said Peter Foster, President and CEO of Air Astana. “Air Astana has had a strong relationship with Boeing ever since the airline started flying in 2002 with a pair of 737NGs. Today we operate both 757s and 767s and we believe that the MAX will provide a solid platform for the growth of FlyArystan throughout our region, once the aircraft has successfully returned to service”.

“Air Astana has become one of the leading airlines in Central Asia with its deep focus on safety, reliability, efficiency and customer service. At Boeing, we share those same values and are honored to expand our partnership with the 737 MAX,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. “We believe the efficiency and reliability built into the 737 MAX will be a great fit for FlyArystan. We look forward to working with Peter and his team finalize an agreement that meets their fleet and operational requirements.”

The 737 MAX 8 is part of a family of airplanes that offer 130 to 230 seats and the ability to fly up to 3,850 nautical miles (7,130 kilometers). With improvements such as the CFM International LEAP-1B engine and Advanced Technology winglets, the 737 MAX provides operators a 14% improvement over today’s most efficient single-aisle airplanes and extended range to open up new destinations.

3D imagery, 737 MAX, MAX, 737 MAX 7, 737 MAX8, 737 MAX 9

Left-Wing Brazil Political Party Sues to Block Boeing-Embraer Deal

October 16, 2019 / WIL BALDWIN

RIO DE JANEIRO (Reuters) – A left-wing political party on Wednesday filed a lawsuit to block the sale of 80% of Brazilian planemaker Embraer SA’s <ERJ> commercial jet division to Boeing Co <BA> for $4.2 billion (3.3 billion pounds), arguing it will harm Brazil’s sovereignty.

The deal, which would position Boeing to compete more directly with Airbus SE <EADSY> in the market for mid-sized passenger planes, has faced significant left-wing opposition largely because Embraer is seen as a strategic company for Brazil’s national security.

So far, a handful of lower court decisions temporarily blocking the deal have been overturned by appeals court judges. The government has authorized the deal and Embraer’s shareholders are all for it.

But the latest lawsuit, filed by Brazil’s Democratic Labor Party (PDT), underscores that there is still a political risk that could potentially unravel the agreements reached so far between Boeing and Embraer. The PDT’s leader, Ciro Gomes, has staunchly opposed the sale of Embraer’s commercial jet division to Boeing.

Embraer declined to comment on the lawsuit.

The proposed deal with Boeing was first announced in July 2018.

Boeing and Embraer are waiting for antitrust approval to finalise the deal, including intense scrutiny from European regulators. They expect that to happen in early 2020.

(Reporting by Rodrigo Viga Gaier in Rio de Janeiro; Editing by Matthew Lewis)

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