The Boeing Company [NYSE: BA] reported second-quarter revenue of $17.0 billion, driven by higher commercial airplanes and services volume. GAAP earnings per share of $1.00 and core earnings per share (non-GAAP)* of $0.40 primarily reflects higher commercial volume and lower period costs (Table 1). Boeing recorded operating cash flow of ($0.5) billion.
“We continued to make important progress in the second quarter as we focus on driving stability across our operations and transforming our business for the future,” said Boeing President and Chief Executive Officer David Calhoun. “While our commercial market environment is improving, we’re closely monitoring COVID-19 case rates, vaccine distribution and global trade as key indicators for our industry’s stability. As we continue to position for a robust recovery, we remain committed to safety and quality, while investing in our people, products and technology. I am proud of our team’s resilience and commitment as we work to rebuild trust, improve our performance and deliver for our commercial, defense, space and services customers.”
As part of Boeing’s ongoing focus on global sustainability, the company published its first integrated Sustainability Report in July. “This was an important step in our continued efforts to reinforce our Environmental, Social, and Governance principles,” Calhoun said.
Click the link below to read the full press release!
In autumn 2020, Deutsche Lufthansa AG (LHA.DE) announced that it would soon be offering Economy Class passengers a range of high-quality food and beverages for purchase on board short- and medium-haul flights.
The airline has now decided on its catering partners: With dean&david, Lufthansa was able to win over a young gastronomy company from Munich that represents freshness, quality and a sense of responsibility – for healthy food, high-quality ingredients and sustainable nutrition as well as environmentally friendly packaging. The culinary offer, which will be available on flights with a duration of at least 60 minutes, will be high quality and full of variety. Gate Gourmet, Lufthansa’s new main caterer for Europe, prepares essential components of the assortment, such as salads, bowls, wraps and sandwiches, fresh daily according to dean&david recipes. The menu includes a salmon avocado bowl, falafel tahini salad, crunchy chicken bowl or sweet chilli chicken sandwich as well as freshly made Birchermuesli. There will also be “Best of dean&david Boxes” with a fine selection from the dean&david assortment.
The menu selection will be complemented by cake specialities and snacks from other manufacturers, such as vegetable crisps. The prices for meals and snacks will range from two to about 12 Euros. The range of fresh products will be updated every three months.
Lufthansa will be expanding its long-standing cooperation with the traditional Munich-based company Dallmayr for hot beverages, confectionery and patisserie specialties. One highlight of this assortment is the project coffee Dano. The name stands for a cultivation region in Ethiopia. Dallmayr supports local people there with projects such as building a school and establishing a coffee cooperation. The product range is complemented by various organic teas, such as Alpine Herbs and First Flush Darjeeling, as well as chocolate milk. Furthermore, chocolates from the Dallmayr praline factory and a selection of cake specialities in cooperation with Gate Gourmet will also be offered.
There will also be a large selection of alcoholic and non-alcoholic beverages. A bottle of tomato juice or orange juice, for example, will be available for three Euros, as will a cup of coffee, hot chocolate or tea. A bottle of water and a small chocolate surprise will be served free of charge.
The focus of the new in-flight offer is on quality, freshness and sustainability. Christina Foerster, Executive Board Lufthansa Group Customer, IT & Corporate Responsibility, explains: “Our partners dean&david and Dallmayr represent outstanding quality and responsible action. In addition to the satisfaction of our guests, the topic of responsibility for the environment is also very important to us. We use almost exclusively sustainable materials for our packaging. Furthermore, we ensure that less food is wasted through more accurate production. We are pleased to be able to offer our passengers fresh products on European flights that taste delicious.”
The new food and beverage offer scheduled to be available on Lufthansa’s short- and medium-haul flights starting in the course of the summer timetable 2021. Orders will be placed directly on board.
The Qantas Group has today announced a reduction to its Group Management Committee as it continues to respond to the expanding COVID-19 crisis.
CEO of Qantas International, Tino La Spina, will leave the Group in light of what is likely to be the extended grounding of this part of the airline.
Responsibilities currently held by Mr La Spina will transfer to CEO of Qantas Domestic, Andrew David. Mr David’s role will change as a result, adding functional responsibility for Qantas International in addition to his existing responsibility for Qantas Domestic and Qantas Freight, reporting to Group CEO Alan Joyce. John Gissing (Group Executive of Associated Airlines and Services) will continue to have responsibility for regional carrier, QantasLink.
Mr Joyce said: “The COVID crisis is forcing us to rethink our business at every level. It’s increasingly clear that our international flights will be grounded until at least mid-2021 and it will take years for activity to return to what it was before. Under those circumstances, we’ve made the decision to consolidate the domestic and international business units under a single divisional CEO.
“Tino has done a superb job throughout his 14 years at Qantas. He’s a talented executive who brings his trademark enthusiasm to every challenge. I know I speak for the rest of the executive team and for the Board in thanking him sincerely for the huge contribution he has made, particularly as Deputy CFO and then CFO for most of that time.”
The change announced today will take effect from 1 September 2020.
As part of its response to the COVID crisis, the Qantas Group Management Committee took three months of zero pay in the last quarter of FY20 and is on reduced pay (65 per cent for the CEO and 85 per cent for other executives) until November 2020.
FILE PHOTO: EasyJet planes parked at Luton airport after the airline grounded its entire fleet
LONDON (Reuters) – EasyJet can survive a nine-month shutdown thanks to its measures to contend with the coronavirus crisis and is planning for a slow recovery, the British airline said on Thursday.
As airlines worldwide battle for survival after lockdowns and travel bans brought the sector to a virtual standstill, EasyJet announced a new fleet plan to manage its emergence from the enforced hibernation.
The UK-based company said it will start to shrink its fleet and the number of planes it operates will not reach pre-crisis levels until 2022, signalling that it does not expect a quick recovery for the industry.
“We’ve been able to adapt ourselves to reduced demand for the next couple of years, then have the flexibility to increase as demand picks up again,” Chief Executive Johan Lundgren told reporters.
The industry is split on how quickly the sector can recover. Lufthansa, plane manufacturers and airline body IATA have warned that it will be a slow process. EasyJet’s bigger low-cost rival Ryanair, meanwhile, has predicted a swift rebound in traffic.
Lundgren said that, while he does not expect the grounding of easyJet’s fleet to last nine months, the company would remain cash-positive even if that were the case and could survive for longer than that by seeking additional funding.
Among the steps it is taking, easyJet is in talks over the sale and leaseback of some planes to leasing companies, with expected proceeds of up to 550 million pounds ($687 million).
“Overall, the company has presented a very credible response to the crisis,” said Goodbody analyst Mark Simpson.
In addition to the deferral of new orders and non-renewal of leases, easyJet said it now plans to sell six aircraft.
The airline, however, has faced calls from its founder and biggest shareholder, Stelios Haji-Ioannou, to terminate its 4.5 billion pound order with Airbus for 107 new jets.
He escalated his row with management on Thursday, issuing a statement saying he planned to call for the removal of Lundgren as well as chairman John Barton at forthcoming meetings. He said Lundgren should not send money to Airbus for planes while running an “aircraft parking lot”.
CASH PILE
Through various funding initiatives, easyJet expects to generate total additional liquidity of about 1.85 billion to 1.95 billion pounds, leading to a notional cash balance of about 3.3 billion pounds.
Given the level of continued market uncertainty, the company said it is not possible to provide guidance for the remainder of the 2020 financial year.
However, it said winter bookings are well ahead of those at the same stage last year, with Lundgren adding that he expects there to be pent-up demand for holidays as people emerge from lockdown.
But travel restrictions are likely to ease slowly and easyJet will have to be flexible, the CEO said. “I don’t think this is going to be a case of let’s just open everything up,” he added.
Measures under consideration include disinfecting aircraft and steps to ensure social distancing on planes.
“We will clearly look to have the middle seat empty as we start,” Lundgren said. “I think that is actually what the customers would like to see.”
EasyJet shares were up 2.2% at 616 pence at 1207 GMT, having lost more than 50% year to date.
($1 = 0.8007 pounds)
(Reporting by Sarah Young; Editing by Kate Holton and David Goodman)
Travellers in the US are set to enjoy more choice in the air, with the formal launch of Breeze Airways announced last week.
Previously known by the code name “Moxy”, the new airline is the brainchild of experienced airline executive David Neeleman, who is renowned for having established four successful airlines during his career.
With the experience of establishing the likes of Morris Air, WestJet, Jet Blue and Azul, each of Neeleman’s new entrants are notable for introducing a variety of innovations to the market.
Today considered commonplace; leading customer experience improvements include e-ticketed bookings, inflight TV streaming and the opening up of routes to city pairs previously not served by existing carriers.
Lawrence W. Kellner to Become Chairman of the Board
New Leadership to Bring Renewed Commitment to Transparency and Better Communication With Regulators and Customers in Safely Returning the 737 MAX to Service
Boeing [NYSE: BA] announced today that its Board of Directors has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020. Mr. Calhoun will remain a member of the Board. In addition, Board member Lawrence W. Kellner will become non-executive Chairman of the Board effective immediately.
The Company also announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and Board director effective immediately. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Mr. Calhoun exits his non-Boeing commitments.
The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders.
Under the Company’s new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers.
“On behalf of the entire Board of Directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture,” Mr. Kellner said. He added, “Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The Board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company.”
Mr. Calhoun said, “I strongly believe in the future of Boeing and the 737 MAX. I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation.”
JetBlue Founder David Neeleman Selects Salt Lake City as Headquarters for New Airline
America’s newest and perhaps most innovative airline does not yet have a name, or any airplanes. But it now has a headquarters.
David Neeleman’s startup will be based in Salt Lake City, where it plans to spend a capital investment of $3.2 million and create nearly 400 jobs over the next five years, according to local authorities. In return, the state offered tax rebates worth as much as about $1.1 million over five years.
“There’s a super strong technology base, and lower cost of living than California and some of the coastal areas,” Lukas Johnson, the airline’s chief commericial said in an interview. “We want to focus more on the technology aspect of the transportation side, and it makes a lot of sense. The tech sector is booming out here.”
HONOLULU, Nov. 27, 2019 /PRNewswire/ — Hawaiian Airlines welcomed guests aboard its inaugural flights between Fukuoka Airport (FUK) and Honolulu’sDaniel K. Inouye International Airport (HNL) with festive gate-side celebrations in both cities as the carrier marked the start of its four-times-weekly nonstop service with Airbus A330 aircraft.
Pictured L to R at FUK: Principal Officer John C Taylor, US Consulate Fukuoka; Mr. Satoshi ISHIMOTO, Head of Fukuoka Airport Branch, OSA JCAB, MLIT; Ms. Akie Oomagar, Vice Governor of Fukuoka Prefecture; Mr. Hiroaki Mitsuyama, Vice Mayor of Fukuoka City; Mr. Tetsuya Nagasao, CEO of FIAC; Ms. Mitsue VARLEY, Japan Country Director, Hawaii Tourism Japan; Jeff Helfrick, Vice President of Airport Operations, Hawaiian Airlines; Kahu La‘akea Arista.
Hawai’i’s flagship carrier delighted guests with performances by the Hawaiian Airlines Serenaders music and hula troupe, as well as fresh lei and special keepsakes including a canvas tote and luggage tag commemorating the airline’s inaugural flight.
Hawaiian Airlines President and CEO Peter Ingram addressed guests in Honoluluto mark the return of service to its sister city. Ross Higashi, deputy director of the State of Hawai’i Department of Transportation – Airports and Koichi Ito, Consul General of Japan also offered congratulatory remarks before the inaugural flight, HA827, departed HNL on Nov. 26 at 11:20 a.m., arriving into FUK at 5:21 p.m.the following day.
In Fukuoka, Theo Panagiotoulias, Hawaiian’s senior vice president of global sales and alliances, and John C. Taylor, principal officer of the U.S. consulate in Fukuoka joined guests in celebrating HA828, which departed FUK at 7:55 p.m. on Nov. 27. The flight’s 8:45 a.m. scheduled arrival at HNL on the same day gives travelers the afternoon to explore O’ahu or connect to one of Hawaiian’s seven neighbor island destinations.
“Fukuoka and Honolulu share a special relationship, so we’re thrilled to bring local residents of Kyushu and Hawai’i one step closer to their vacation with our convenient nonstop service,” said Panagiotoulias. “We’re pleased to now offer 35 weekly flights between Hawai’i and five gateways in Japan with the launch of our new Fukuoka service.”
Guests traveling between Fukuoka and Honolulu will enjoy the roominess and comfort of Hawaiian’s Airbus A330 aircraft, which features 18 fully flat Premium Cabin leather seats arranged in a 2-2-2 configuration tailored for couples, families and honeymooners while offering great functionality to business travelers. Hawaiian also offers 68 of its popular Extra Comfort seats with more legroom and enhanced amenities, in addition to 192 Main Cabin seats. All guests will enjoy Hawaiian’s award-winning hospitality, including island-inspired meals prepared by Hawai’i’s top chefs, as well as new in-flight amenities by Kealopiko, designers of contemporary island apparel.
Hawai’i has strong historical ties to Fukuoka dating back to 1885 when the first 149 immigrants arrived on the ship Yamashiromaru to work in Hawai’i following King David Kalakaua’s signing of a treaty of reciprocity with Japan.
A century later, in 1981, the State of Hawai’i passed a resolution establishing a Sister-State relationship with Fukuoka Prefecture, the first one in Hawai’i’s history. Then- Hawai’i Gov. George Ariyoshi, whose father Ryozo Ariyoshi came to Honolulu from Fukuoka, led the Sister-State initiative.
Fukuoka becomes Hawaiian’s fourth gateway city in Japan, which complements its existing network of nonstop service connecting the Hawaiian Islands with Osaka, Sapporo, and Tokyo’s Haneda and Narita airports. The carrier now operates 35 weekly nonstop flights between Japan and Hawai’i and will begin additional daily service between HNL and Tokyo Haneda on March 28.
SAO JOSE DOS CAMPOS, Brazil (Reuters) – Embraer <ERJ> hopes to see more orders for its newest passenger plane by the end of the year, an executive said on Thursday, as Boeing <BA> readies to take over the Brazilian planemaker’s commercial jets division in what could mark the next phase of its rivalry with Airbus <EADSY>.
Manufacture of the E195-E2, as Embraer’s plane is known, will soon be controlled by Boeing, which needs regulatory approval to close on the deal to buy 80% of Embraer’s commercial jets division for $4.2 billion.
Embraer on Thursday delivered its first E195-E2 plane, which will seat about 140, to Brazil’s No. 3 airline Azul <AZUL> at its headquarters in Sao Paulo state. Embraer executives said the delivery should spur more orders, helping to fend off fresh competition from Airbus.
“I expect we will close more transactions, I’m hopeful … before the end of the year,” John Slattery, head of Embraer’s commercial plane division, told Reuters. “I’m not seeing a big wave of people that need to delay, or wish to delay because of the Boeing transaction.”
The new plane comes as the landscape for jets with under 150 seats is changing drastically. Airbus bought control of the Bombardier division competing directly with Embraer in 2018, followed by Boeing’s deal to take over Embraer’s commercial plane division.
The result would expand the global duopoly for jumbo jets into a smaller category, as Boeing and Airbus work to lure orders across a broader lineup of commercial aircraft.
Azul was founded by U.S. airline executive David Neeleman, who also founded JetBlue Airways <JBLU>, which was a launch customer and key customer for Embraer’s last generation of jets.
“We can have 18 more seats with this plane, with a travel cost that is 15% less,” Neeleman said of the improvements in the new generation. “If you have something that is 15% cheaper, you just want that thing, you don’t want anything else.”
STIFF COMPETITION
Embraer is banking on the fuel efficiency of this new generation, to the point it has marketed its E195-E2 to customers as the “profit hunter,” painting the jet with livery resembling a shark in the plane’s nose.
But for now, Embraer has struggled to compete directly with Airbus. Carriers and plane lessors had placed 551 orders for the Airbus A220 family as of June, but Embraer had racked up only 168 for its new family of E2 jets, down from 200 in 2014.
Part of Embraer’s struggles stem from its smaller E175-E2 plane, which has been a hard sell to U.S. regional airlines due to labor contract restrictions. Embraer dropped 100 of those planes from its order book after resistance from pilots made it unclear if buyer Skywest <SKYW> would be able to fly them.
“We didn’t design an aircraft just for the U.S. market,” Slattery said, adding that he hopes his company will secure an order from a customer somewhere else in the world this year. Currently they have none, although Slattery said Skywest remains committed, if pilots allow it.
JetBlue also dealt a blow to Embraer last year when it decided to replace its old Embraer fleet with Airbus A220s, a decade after Neeleman left the company.
JetBlue cited the advantages of A220’s longer range, as well as a broader package with Airbus including larger planes — the kind of arrangement that Boeing could offer with Embraer’s jets in its portfolio.
(Reporting my Marcelo Rochabrun in Sao Jose dos Campos, Brazil; Additional reporting by Allison Lampert in Montreal; Editing by Alistair Bell and Marguerita Choy)
