Tag: Copa

Honeywell Fuel Tank Safety Technology Selected By Copa Airlines

August 10, 2021 / WIL BALDWIN

Honeywell (NASDAQ: HON) has been selected by Copa Airlines to provide its Air Separation Module (ASM) kit for Copa’s fleet of Boeing 737 aircraft. This new technology offering is a drop-in replacement for Copa’s existing ASMs, which are installed on larger aircraft to help reduce the risk of fuel tank fires. Copa is the first airline to operate Honeywell’s version of the safety system, which has one of the longest lifespans and warranties in the industry.

As an aircraft uses fuel and its fuel tanks empty, it is critical to decrease the risk of fire by reducing the amount of oxygen that fills that open space. The ASM separates oxygen from nitrogen in the surrounding air, which allows the Nitrogen Generation System to pump nitrogen into the emptying fuel tanks. Honeywell’s ASM can be installed roughly six to eight hours faster than the current product from the original equipment manufacturer. This shortened installation time contributes to lower maintenance costs. Additionally, Honeywell’s ASM has increased durability over other options currently installed in 737 aircraft and is designed to integrate with Honeywell’s Nitrogen Generation System, which has been line-fit on every 737 built after 2008.

The Honeywell ASM was designed with a high-durability membrane construction to meet the needs of the demanding 737 operating environment. It is supplied as a kit and contains a new Honeywell ASM, complete with all needed blankets and brackets, and ozone destruct filter and instructions for installation.

The ASM will provide lower installation costs for carriers, and with its increased durability, Honeywell is able to guarantee ASM life of seven years without replacement. Because Honeywell is the Nitrogen Generation System integrator, these kits can be combined into existing maintenance plans to further reduce overall customer operating costs.

For more information on Honeywell’s Air Separation Module Kit, visit aerospace.honeywell.com.

United, Avianca and Copa’s South American Deal Delayed as They Mull Fourth Partner

October 28, 2019 / WIL BALDWIN

BRASILIA, Oct 28 (Reuters) – A proposed joint venture between United Airlines, Colombia’s Avianca Holdings and Panama’s Copa Holdings has been delayed due to the potential inclusion of a fourth partner, as well as problems at Avianca, the CEOs of two of the companies said.

United Airlines said last week it wants to include Brazil’s Azul SA, in which it already has a stake, in the planned tie-up with Copa and Avianca, the latest play by a U.S. carrier for a region expected to have significant air-travel growth in coming decades.

The three airlines had said in November 2018 they would file for U.S. antitrust approval “in the near term” in order to coordinate routes between South America and the United States, a bold move to expand their market share in the region. At the time, the carriers said they aimed to implement the agreements in 2020.

But almost a year after United, Copa and Avianca announced the preliminary joint venture plan, they have yet to file any paperwork with the U.S. Department of Transportation, seeking antitrust immunity. Now, the regulatory process may begin as late as next year, they said.

Copa Chief Executive Officer Pedro Heilbron said the group expects to file in early 2020, while Avianca CEO Anko van der Werff, said it would file between late 2019 and early 2020. Both spoke to Reuters in separate interviews on Monday on the sidelines of the ALTA Airline Leaders’ Forum in Brasilia.

Both said there was a delay on the original timeline.

United did not comment on a delay but said it planned to complete the application later this year or early next year. Azul had no comment other than saying it was “always looking for opportunities with its partners.”

The potential inclusion of Azul, which may be in the early stages of negotiations, has been one reason for the timetable slipping.

“Quite frankly, really completely open and honest, we haven’t had many discussions,” van der Werff said. “I personally haven’t had even one real, serious discussion at the CEO level about when to include and what to include.”

Both executives said they want Azul to be part of the joint venture – Brazil is by far the largest aviation market in the region – but its inclusion makes negotiations more difficult.

“It almost doubles the level of complexity,” Heilbron said.

Avianca has also gone through corporate turmoil. In May, United Airlines ousted the chairman and controlling shareholder at Avianca, revamping leadership.

“We should have filed with regulators this year but everything got delayed because of what has happened at Avianca,” Heilbron added.

(Reporting by Marcelo Rochabrun in Brasilia Additional reporting by Tracy Rucinski in Chicago Editing by Matthew Lewis and Sandra Maler)

Azul Eyes Partnership with United, Avianca, Copa

October 14, 2019 / WIL BALDWIN

SAO PAULO (Reuters) – Brazil airline Azul SA said on Monday that it is in discussions to join a planned partnership with United Airlines, Avianca Holdings and Copa Holdings for flights between the United States and Latin America.

The three airlines announced their plan to coordinate routes in November 2018, but have yet to receive regulatory approval to go ahead. United owned 8.2% of Azul’s preferred shares last month, according to the Brazilian airline’s website.

(Reporting by Marcelo Rochabrun)

E2-195 plane with Brazil’s No. 3 airline Azul SA logo is seen during a launch event in Sao Jose dos Campos

Avianca Seeks To Cut Airbus Order In Half

December 11, 2018 / WIL BALDWIN

BOGOTA (Reuters) – Airline Avianca Holdings SA (AVT_p.CN) will begin negotiations with Airbus (AIR.PA) to reduce the 100 planes it had agreed to purchase in a 2015 deal to as few as 50, the chief executive of the Latin American company said.

Avianca was also seeking a strategic alliance with German airline Lufthansa (LHAG.DE), CEO Hernan Rincon said late on Sunday, part of its bid to expand in Europe.

Avianca representatives will travel to France in the coming days for re-negotiations with Airbus, Rincon said. Avianca had agreed to buy 100 A320neo planes to modernize its fleet.

“Of those 100, we’ll probably receive between 50 and 80 planes,” he said. “We don’t have any doubt that we will keep growing, what has changed is the rhythm of the growth.”

Technological advancement is part of the reason for the airline wanting to reduce its purchases, Rincon added.

“The rhythm of technology is changing, it will take a while to get all of the order and we don’t want to have a commitment to planes with today’s technology which will be received by us in 10 or 15 years,” he said.

A reduction in the original order, which was set to cost $10 billion, will also give Avianca some financial breathing room, Rincon added.

At the end of last month Avianca, United Continental Holdings Inc (UAL.O) and Copa Airlines of Panama said they had finalized a three-way joint venture that will allow them to plan routes and fares together and share revenues on those routes.

United, Avianca and Copa are already codeshare partners and Star Alliance members.

“We’ve started conversations with Lufthansa, but its very embryonic,” said Rincon. “We hope to reach an agreement to benefit our passengers in Europe, which is a relevant and growing market.”

The deal with Lufthansa would be similar to the one just agreed with United and Copa, Rincon added.

Under the United and Copa agreement, United said it would provide a $456 million term loan to cash-strapped Avianca’s top shareholder, Synergy Group Corp. Loss-making Avianca has a roughly $4 billion debt pile, of which 40 percent is due within the next two years, according to recent financial statements.

That deal still has to be approved by regulators.

Avianca will also start operating a regional subsidiary in Colombia in 2019, meant to serve medium and small-sized cities with 12 ATR 42 planes. The planes are already part of Avianca’s fleet, Rincon said.

(Reporting by Luis Jaime Acosta; Writing by Julia Symmes Cobb; Editing by Helen Murphy and Marguerita Choy)

Will Brazil’s Azul Join Avianca-United Airlines Alliance?

December 3, 2018 / WIL BALDWIN

SAO PAULO, Dec 3 (Reuters) – Two Brazilian airlines, Azul SA and Avianca Brasil, are targets for expansion in the wide-ranging alliance between United Continental Holdings Inc , Colombia’s Avianca Holdings and Panama’s Copa Airlines on U.S.-Latin America routes, Avianca Holdings’ Chief Financial Officer, Gerardo Grajales, told Reuters on Monday.

There was little reference to Brazil, by far the region’s largest market, when the alliance was announced on Friday, but Grajales said the parties to the agreement already had in mind Azul and Avianca Brasil, which operates independently of Colombia-based Avianca Holdings.

“The two airlines complement each other in the Brazilian market,” Grajales said. “From the beginning we thought that Brazil should be covered by our agreement, however, no partnership would be authorized if it did not have an Open Skies agreement.”

The Open Skies agreement between Brazil and the United States was signed into law in May, when discussions among the three airlines were already advanced, he explained.

The airline agreement mimics a partnership between American Airlines and Chile’s Latam Airlines which has been mired in regulatory scrutiny.

The announcement between the United Airlines parent, Avianca and Copa capped off almost two years of negotiations. United will loan Avianca’s majority shareholder almost $500 million to be spent on ventures outside of the airline.

Depending on how it is repaid, United could end up owning a large chunk of the Colombian carrier. United is making no monetary investment in Copa or its affiliates.

United already owns an 8 percent stake in Azul, and has a codesharing agreement with Avianca Brasil, formerly known as Ocean Air.

Shares in Azul were down almost 5 percent on Monday afternoon in Sao Paulo. The world’s largest asset manager BlackRock disclosed late on Friday that it had sold an almost 10 percent stake in Azul’s preferred shares. Hours earlier, the carrier disclosed in another securities filing that it sought to double in size in the next five years.

Azul did not immediately respond to a request for comment. (Reporting by Marcelo Rochabrun; Editing by David Gregorio)

Image from en.wikipedia.org

Azul and Copa Airlines Announce Codeshare Agreement

November 8, 2018 / WIL BALDWIN

Customers can conveniently connect to Azul’s unrivaled domestic network when flying
Copa into and out of Brazil; in addition to the codeshare agreement, Azul and Copa also
announce today the launch of their frequent flyer cooperation agreement.

São Paulo, November 8, 2018 – Azul Brazilian Airlines and Copa Airlines have announced today a broad cooperation agreement that will connect the two largest route networks in Latin and South America. As part of this agreement, customers can conveniently connect to Azul’s unrivaled domestic network when flying Copa into and out of Brazil. This agreement means that Copa customers can now potentially access all of Azul’s 101
domestic destinations in Brazil, including 52 destinations not served by any other airline. In the near future, Azul will also place its code on Copa flights into and out of its Panama city hub, allowing Azul’s domestic customers to take advantage of the broadest network in Latin America. The benefits and convenience of a codeshare ticket include those of thru check-in and thru-baggage.

In addition to the codeshare agreement, Azul and Copa also announce today the launch of their frequent flyer cooperation agreement. Starting in December, members’ of TudoAzul, Azul’s loyalty program, and ConnectMiles, Copa’s loyalty program can now easily earn frequent flyer points when flying either airline.

“Copa Airlines is always looking for partnerships to offer the best travel experience and enhance our route network for our customers. This new partnership with Azul reinforces the company’s presence in Brazil as well as expands our connectivity domestically in this important country”, said Dennis Cary, Commercial and Planning Senior Vice President, Copa Airlines.

“This codeshare agreement also allows us to offer more flight options to major cities in the Brazilian southeastern and northeastern regions to which we currently do not fly and which, through our Hub of the Americas, will be connected with Panama and the rest of the American continent bringing more opportunities and economic development to these cities”, added Cary.

Operational excellence is embedded deep within the DNA of both Copa and Azul. “In addition to the broad portfolio of destinations, this codeshare brings together two of the most on-time airline in the world. Copa is the most on-time airline in Latin America while Azul is the most punctual in Brazil. This ensures the best possible experience for our connecting customers”, highlights Shah.

Once the agreement is approved by the regulatory authorities, Customers of both airlines will be able to enjoy all these benefits.