Tag: effects

Air France-KLM’s Future in Doubt Without Cost Cuts – Dutch minister

September 13, 2020 / WIL BALDWIN

AMSTERDAM (Reuters) – Air France-KLM <AF.PA> might not survive its current crisis if the airline group cannot lower its costs, Dutch Finance minister Wopke Hoekstra said on Sunday.

“The survival of Air France-KLM is not a given,” Hoekstra said in an interview on Dutch public television.

“They will have to address their cost base even as things stand now. And suppose this situation lasts until the end of next year, then they will have to cut even deeper.”

Air France-KLM’s immediate future was secured by the French and Dutch governments in July, as they provided a total of 10.4 billion euros ($12.3 billion) in bailout loans and guarantees to help the group survive the disastrous effects of the COVID-19 pandemic on air travel.

In return for the support, Dutch arm KLM has said it would cut another 1,500 jobs, reducing its staff by 20%, while a pay hike agreed for 2020 was frozen by the company.

French arm Air France plans to cut 6,500 jobs, or 16% of its workforce, through 2022.

So far, however, KLM has failed to reach an agreement with unions on the cuts needed to meet the requirements set by the Dutch government.

Hoekstra indicated a thorough restructuring would be necessary for governments to contemplate further support.

“KLM will always be very important for the Dutch economy. But the question is whether that will be enough”, he said.

Air France-KLM said last month that it was losing 10 million euros per day due to the coronavirus crisis.

(Reporting by Bart Meijer; Editing by Susan Fenton)

Norwegian to Cancel Approximately 3000 Flights and Implement Temporary Layoffs Due to COVID-19

March 10, 2020 / WIL BALDWIN

Due to the COVID-19 situation, Norwegian is preparing to cancel approximately 3000 flights between mid-March and mid-June. This represents approximately 15 percent of the total capacity for this period. The company has also put several other measures in place, including temporary layoffs of a significant share of its workforce.

The past week, Norwegian has experienced reduced demand on future bookings. The company will cancel about 3000 flights to meet the change in demand. The cancellations represent approximately 15 percent of the total capacity for the period mid-March to mid-June. It will affect the entire network and more details will be shared as soon as they are ready to be implemented. Affected customers will receive information about these changes as soon as they take place.

“This is a critical time for the aviation industry, including us at Norwegian. We encourage the authorities to immediately implement measures to imminently reduce the financial burden on the airlines in order to protect crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.

“Unfortunately, cancellations will affect a significant share of our colleagues at Norwegian. We have initiated formal consultations with our unions regarding temporary layoffs for flying crew members as well as employees on the ground and in the offices. We will continue to engage in constructive dialogue with unions and employees to work through this difficult situation together,” said Schram.

Norwegian will continue to share updates with its customers, the financial market and the media once new measures are implemented.

Boeing Reveals its U.S. Army Future Attack Reconnaissance Aircraft Design

March 3, 2020 / WIL BALDWIN

Agile, purpose-built and designed for the Army’s evolving missions

Boeing [NYSE: BA] is offering the U.S. Army an agile, fully integrated, purpose-built system for the Future Attack Reconnaissance Aircraft (FARA) prototype competition.

Boeing FARA is designed to meet the Army’s current mission needs while evolving as technologies and missions change. The thrust compounded single-main rotor helicopter boasts a six-bladed rotor system, a single engine, tandem seating and a modular, state-of-the-art cockpit with a reconfigurable large area display and autonomous capabilities.

“We’re offering more than a helicopter – we’re offering an affordable and fully integrated system for the Army, the mission and the future. We’ve blended innovation, ingenuity and proven rotorcraft experience with extensive testing and advanced analysis to offer a very compelling solution,” said Mark Cherry, vice president and general manager of Boeing’s Phantom Works.

The fly-by-wire design leverages more than 65 years of rotorcraft experience, proven advanced and additive manufacturing technology, and product commonality driving down risk and costs. The system will provide seamless capability within the Army ecosystem to include Long-Range Precision Fires and air-launched effects.

“We listened to the Army, assessed all alternatives, and optimized our design to provide the right aircraft to meet the requirements,” said Shane Openshaw, Boeing FARA program manager. “We are offering a very reliable, sustainable and flexible aircraft with a focus on safety and the future fight.”

FARA will fill a critical gap in Army aviation for an advanced light attack and reconnaissance capability, previously held by the now-retired Bell OH-58D Kiowa Warrior.

For more information about Boeing FARA and its features, visit www.boeing.com/FARA.

Airbus Says Higher U.S. Tariffs on EU Planes Will Harm U.S. Airlines, Consumers

February 14, 2020 / WIL BALDWIN

WASHINGTON (Reuters) – The U.S. government’s decision to raise tariffs on European-built aircraft will hit U.S. airlines already facing a shortage of aircraft and complicate efforts to reach a negotiated settlement with the European Union, Airbus <AIR.PA> said.

The European planemaker said it would continue discussions with its U.S. customers to “mitigate effects of tariffs insofar as possible” and hoped the U.S. Trade Representative’s office would change its position.

“USTR’s decision ignores the many submissions made by U.S. airlines, highlighting the fact that they – and the U.S. flying public – ultimately have to pay these tariffs,” the company said in a statement.

(Reporting by Andrea Shalal; Editing by Daniel Wallis)

Air France-KLM’s Future in Doubt Without Cost Cuts – Dutch minister

Norwegian to Cancel Approximately 3000 Flights and Implement Temporary Layoffs Due to COVID-19

Boeing Reveals its U.S. Army Future Attack Reconnaissance Aircraft Design

Airbus Says Higher U.S. Tariffs on EU Planes Will Harm U.S. Airlines, Consumers

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