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ATR Outlines Plan for Recovery in 2021 and Beyond

Toulouse, 17 March 2021 – ATR is determined to emerge stronger from the COVID crisis by strengthening its global presence in the next decade and by continuing to offer the most sustainable and modern option for regional air travel.

In 2020, ATR was quick to react to the circumstances by supporting its customers with rapid freight conversion solutions, sanitary tutorials as well as storage and maintenance instructions. Throughout its sites, the company put in place operational and sanitary measures.

Last year, the world’s leading regional aircraft manufacturer delivered 10 aircraft and received six gross orders. Despite the unprecedented market conditions for aircraft manufacturers, 2020 saw nine new operators using ATR aircraft and 84 new routes opened. In addition, ATR operators launched services in three new countries. Last December, the first purpose-built freighter (ATR 72-600F) was delivered to FedEx.
Whilst air travel is still in its early phases of recovery, ATR has a clear and actionable plan to overcome the current challenges by continuing to pioneer sustainable and cutting-edge solutions for regional connectivity.

ATR’s plan for recovery includes:

  • The implementation of incremental improvements into the aircraft family, to enhance operational efficiency and reduce maintenance costs through system upgrades and state-of-the-art avionics, maintaining the competitive and environmental advantage we offer to our customers
  • Following the delivery of the first new purpose built freighter to FedEx, ATR is well positioned to benefit from the resilience of the cargo market, already at pre-Covid level. Air cargo is expected to double its capacity in the next 20 years, and point to point express deliveries can best be served by our aircraft
  • The Short Take Off and Landing variant of the ATR42-600 will open a range of opportunities in airports with airstrips between 800 and 1,000 m
  • Around 900 ageing regional turboprop will need to be replaced in the next years, and a more sustainable, cost-efficient and modern aircraft like the ATR can ensure profitability for its operators.

ATR has already flown with a combination of Sustainable Aviation Fuels (SAFs) and is further investigating its possibilities. To fill the gap from today until new disruptive technologies will be made available, ATR will explore new solutions to further reduce the carbon footprint of the aircraft.

The ATR joint venture was born with the mission to deliver a cost-effective, low fuel consumption aircraft that could reach small or remote airports with little infrastructure and short runways, and continue to pioneer cutting-edge technology fully oriented towards its customers’ requirements and the need to connect local communities with the global economy, healthcare, education and culture.

FedEx Modernizes Fleet With Delivery of Regional ATR Freighter

FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, announced the delivery of the first ever purpose-built turboprop regional freighter to the FedEx fleet. This follows the company’s 2017 signing of a firm order of 30 aircraft, with the option to purchase 20 more. The aircraft will arrive at Shannon Airport and will be operated by ASL Airlines Ireland, a FedEx ATR operator since 2000, as part of the FedEx Express Feeder fleet. This global fleet allows the company to provide fast, economical services to small and medium-sized business areas around the world.

The most fuel-efficient regional aircraft, the ATR turboprop is a popular choice for cargo and passenger operators committed to a more sustainable aviation industry for the future. ATR has extensive experience in the regional freighter market. There are currently around 130 converted ATR freighter aircraft in operation, representing one third of the global regional freighter fleet, and this brand-new ATR 72-600F incorporates the benefits of this knowledge to provide FedEx with a freighter that conforms to needed requirements. With the changing market and the growth of e-commerce, the ATR is perfectly fit to connect communities and economies around the world.

FedEx Express operations can now benefit from the unique advantages offered by the ATR 72-600F’s 75m3 freight capacity. The purpose-built freighter’s fuselage is a clean design, optimised for cargo and has been delivered by the turboprop manufacturer’s Italian shareholder Leonardo, from their facilities in Naples. The aircraft’s large cargo door facilitates the optimal loading of nine tonnes of payload and offers the option of carrying either bulk cargo or, when in Unit Load Device (ULD) mode, five 88” x 108” pallets or up to seven LD3 containers. Pilots can benefit from the latest upgradable Standard 3 avionics suite in the ATR 72-600, allowing the introduction of continuous cockpit innovations that improve efficiency.

Jorn Van De Plas, Senior Vice President Air Network and GTS Europe, FedEx Express said: “Today’s delivery of the first ever purpose-built regional ATR freighter marks an exciting new chapter for our FedEx Express Feeder fleet. This is an important step in our fleet renewal strategy, ensuring we remain the most flexible, reliable, and responsible network in the business.

Stefano Bortoli, Chief Executive Office of ATR, said: “Every manufacturer is proud when it develops and delivers a brand new aircraft, and given the uniquely challenging year the industry and the whole world has faced, handing over to FedEx Express this very first ATR 72-600F is an exciting and rewarding moment for our whole team here in ATR. Freighters play a huge role in supplying essential connectivity between economies all over the world and the unique aspects of our modern purpose-built freighter mean it will deliver operational benefits to companies that integrate them into their fleet.

As part of the FedEx Express commitment to circularity, the two aircraft being replaced by the new ATRs will be donated to Madrid airport where they will be used for fire services training. These will be the 97th and 98th planes FedEx has donated at the end of their service in the fleet.

This delivery is an encouraging move for the logistics and air cargo industry in how they can continue to support the economy around the globe.

First Ever Purpose-Built Regional Freighter Takes Flight

The ATR 72-600F will provide cargo operators with advantages of the latest generation market-leading regional turboprop

ATR, the world number one regional aircraft manufacturer, today announces the successful first flight of its new purpose-built regional freighter aircraft. The flight took off at 14:00 from its Saint-Martin site and lasted two hours. During the flight, crew onboard performed a number of tests to measure the new aircraft’s flight envelope and flight performance. The first delivery of this aircraft will be to FedEx Express, the world’s largest cargo airline and express transportation company, who placed a firm order for 30 aircraft, plus 20 options, in November 2017. The arrival of this new freighter further cements ATR’s leadership position in the regional freighter market where ATR cargo aircraft already represent a third of the in-service regional freighter fleet.

The brand new straight-from-factory cargo aircraft will offer a number of unique advantages to operators. With a Large Cargo Door included as part of the original design and the same wide cross section as all ATR aircraft, the freighter will be able to accommodate bulk cargo and industry-standard pallets and containers. The aircraft will also provide operators with the very latest avionics suite, which can be continuously upgraded. This effectively futureproofs the -600F’s state-of-the-art cockpit by allowing cargo airlines to take benefit from future innovations, which will further enhance the aircraft’s efficiency.

Amazon’s Rising Air Shipments Fly in the Face of Climate Plan

LOS ANGELES (Reuters) – Amazon.com Inc <AMZN> Chief Executive Jeff Bezos has plans to slash greenhouse gas emissions from the online retailer’s delivery operations.

Yet the company’s use of airplanes – the most climate-damaging mode of transportation – is on the rise, according to data provided to Reuters.

Amazon Air’s U.S. volume has risen steadily since its 2016 launch, according to an analysis of Department of Transportation data by Cargo Facts Consulting https://www.cargofactsconsulting.com, a Luxembourg-based advisory firm with a global staff and more than four decades of history.

It crunched data from Air Transport Services Group Inc <ATSG> and Atlas Air Worldwide Holdings <AAWW>. Both supply planes and pilots for Amazon Air.

In July, Amazon Air flew 136 million lbs of goods in the United States, according to the data. That was up 29% from the year earlier and just 9 million lbs short of December 2018, when the peak holiday shipping season was in full swing.

For a graphic on more Amazon Air flights, click the link below:

https://fingfx.thomsonreuters.com/gfx/editorcharts/AMAZON-AIRPLANES/0H001QXH999X/eikon.png

Bezos has said Amazon will cut its use of airplanes as it builds more local warehouses and fills them with goods that it can deliver to customer doorsteps in one day, or even one hour.

But for the time being, Amazon’s air shipments are climbing as it speeds up deliveries to lure customers and pressure rivals like Walmart Inc <WMT> and Target Corp <TGT>.

In April, Amazon started offering no-minimum purchase, one-day free shipping to members of its Prime subscription service.

In the latest quarter, it saw delivery costs soar, and warned the holiday quarter would see costs for one-day shipping alone spike to $1.5 billion.    

The Seattle e-retailer, which sends 10 billion packages a year, declined to say what percentage of its shipments travel by plane or give specific examples of how the latest drive to shave time off its standard two-day shipping affected air transport.

Last month, Amazon said its CO2 emissions in 2018 were 44.4 million metric tons and set a goal to be net carbon neutral by 2040.

“We expect the percent of total shipments to customers utilizing air transportation to reduce from year to year as we significantly increase one and same day shipments,” Amazon spokesman Sam Kennedy said, when asked about Cargo Facts’ data.

DELIVERY WARS

A standard package flown on a plane in the United States creates an estimated 6-10 times more CO2 emissions than one traveling by truck, said Jacques Leonardi, a senior research fellow in freight, logistics and sustainable distribution at the University of Westminster in London.

Amazon Air leases 47 planes and is expected have 50 by the end of the year. It operates roughly 110 daily flights in the United States and around 20 per day in Europe, according to Cargo Facts.

In June, shortly after FedEx Corp <FDX> said its planes would stop shuttling packages for the online retailer, Amazon Air announced plans to have 70 planes on lease by 2021.

But Amazon says it is getting closer to customers with an expanding network of well-stocked warehouses. Those local fulfillment centers underpin the company’s one-day and same-day delivery services.

In a news release issued Monday, Amazon said those options were “better for the planet” because there aren’t many miles in the trip to customer doorsteps.

Because those time windows are so tight, “you are eliminating the possibility of air transportation,” Amazon’s Bezos said in September. “Even though it’s counterintuitive, the fact of the matter is that shorter delivery times end up being less carbon-intensive than longer delivery times.”

Products from most of Amazon’s 158 U.S. distribution centers can be shipped to 65% of the population in one day, said Marc Wulfraat, president of supply chain consultancy MWPVL International.

Items like footwear, jewelry, auto parts and niche electronics come from 23 distribution centers that span the country – and will likely need to be moved by air for next-day delivery, Wulfraat said.

Amazon also depends on United Parcel Service Inc <UPS> for air shipments. The Atlanta-based delivery company has seen a bump in that business since Amazon began expanding free one-day delivery this spring, UPS executives and analysts said.

Domestic next day air volume at UPS surged more than 30% in the second quarter and was up nearly 24% in the third quarter – fueled by faster e-commerce shipping speeds and rival FedEx’s breakup with Amazon this summer.

“It’s not all from FedEx,” said Satish Jindel, the founder of logistics advisory firm ShipMatrix, noting that express and deferred air services revenue at UPS surged $852 million in the second and third quarters.

Amazon’s business was worth about $900 million to FedEx prior to their split, Jindel said. Express, which includes air shipments, accounted for roughly $540 million of that, he said.

(Reporting by Lisa Baertlein in Los Angeles; Editing by Mark Potter)

Trump Meets With Airline CEO’s Over Qatar Subsidies

WASHINGTON (Reuters) – U.S. President Donald Trump met on Thursday with the chief executives of major American airlines to discuss their accusations that subsidies by Qatar and United Arab Emirates are costing jobs in the United States.

The meeting between Trump and the CEOs of American Airlines, United Airlines, JetBlue Airways Corp, FedEx Corp, and Atlas Air included Vice President Mike Pence, the White House said.

The meeting also included the CEO of state-owned Qatar Airways, Akbar al-Baker, who was also at the White House last week to tout its decision in June to buy five new Boeing 777 freighters.

The White House did not immediately provide details of the meeting.

Since 2015 the largest U.S. carriers – Delta Air Lines, American and United Airlines – have argued their Gulf rivals are being unfairly subsidized by their governments, distorting competition and costing U.S. jobs – something the Gulf carriers deny.

The Partnership for Open & Fair Skies, a group representing Delta, American, United and aviation unions, said it had a “productive meeting” with Trump.

“The president shares our concerns and instructed us to keep working with the U.S. Department of Transportation, which we plan to do,” Scott Reed, the group’s managing partner, said in a statement.

The CEOs of JetBlue, FedEx and Atlas Air have warned that restricting the rights of Qatar Airways could lead to retaliation against U.S. carriers and added, in an April letter, it could lead to “a rapid unravelling of hard-fought aviation rights around the world when other governments take similar action to shield their state-owned airlines from competition.”

Last week, the CEOs of Delta, United and American wrote a joint USA Today op-ed urging the White House to act “decisively to hold Qatar and the UAE accountable.” They suggested that failing to respond would “signal to other countries that they too are free to exploit American workers.”

In April, Secretary of State Mike Pompeo said the administration was scrutinizing Qatar Airways’ acquisition of a 49% stake in Air Italy, which has been flying to U.S. destinations since 2018 in a move seen by U.S. lawmakers as flouting a deal not to add new flights to the domestic market.

Both Republicans and Democrats in Congress have said they were concerned that the deal with the Italian carrier contravened an understanding Qatar Airways reached with the United States in early 2018.

Qatar Airways acquired the 49% of Italian airline Meridiana in 2017, rebranded it Air Italy and transformed it into a carrier with five announced nonstop U.S. destinations from Milan.

The Qatari government said in 2018 it was unaware of any plans to launch flights from Qatar to U.S. destinations via stops in Europe known as “Fifth Freedom” flights.

(Reporting by Steve Holland and David Shepardson; Additional reporting by Jeff Mason; editing by Marguerita Choy, Tom Brown and Richard Chang)

Cessna SkyCourier Advances Through Development

GENEVA (May 20, 2019) – Textron Aviation Inc., a Textron Inc. (NYSE:TXT) company, today announced new milestones in its Cessna SkyCourier twin utility turboprop development program, with assembly underway for the prototype aircraft and the additional five flight and ground test articles. Component testing also continues for the new propeller, nose landing gear and fuel system.

“When we began designing and developing the Cessna SkyCourier, we engaged a number of mission-centric customers for technical input to best meet their unique needs in one platform,” said Chris Hearne, senior vice president, Engineering. “We are building this aircraft with the flexibility and reliability needed for a variety of high-utilization operations including cargo, passenger or special missions and we are excited that the customers and the market are responding positively to its capabilities.”

Endurance and functional testing for the new McCauley 110-inch propeller consists of nearly 150 hours of operation and includes a variety of simulated flight profiles. The propeller is mated with the proven PWC PT6A-65B, 1100-shp engine, mounted on a test stand. Simultaneously, assembly of the fuel system test article and nose landing gear drop test article is underway, with testing to start later this month.

The Cessna SkyCourier is the latest clean-sheet design from Textron Aviation and will be offered in various configurations including cargo, passenger or a combination of both, all based on a common platform to meet the needs of a wide range of customers. The cargo configuration is designed to accommodate three standard air cargo containers (LD3) with a payload of up to 6,000 pounds while the passenger version carries up to 19 passengers.

FedEx Express, the world’s largest express transportation company and longtime Textron Aviation customer, signed on as the launch customer in late 2017 for up to 100 aircraft, with an initial fleet order of 50 cargo aircraft and options for 50 more.

FedEx Expands Fleet To Add 1,000 Chanje Electric Vans

(Reuters) – FedEx Corp said on Tuesday it plans to add 1,000 Chanje electric delivery vans to its fleet of vehicles in a bid to save on fuel and cut down on pollution.

The package delivery company will buy 100 Chanje V8100 vans from the Los-Angeles based startup and lease the remaining from U.S. truck rental company Ryder System Inc.

United Parcel Service Inc, FedEx and Deutsche Post AG unit DHL have faced pressure from regulators around the world to lessen the environmental impact of their fleets.

UPS, FedEx and DHL have placed orders for Tesla Inc’s all-electric Semis and already use Workhorse Group Inc’s electric vans.

The Chanje electric vans will have a range of more than 150 miles when fully charged, with maximum cargo capacity of about 6,000 pounds.

Last year, Ryder said it would order electric delivery vans from Chanje and become the exclusive U.S. sales and lease partner for the company.

The Chanje V8100 vans are manufactured by FDG Electric Vehicles Ltd, the startup’s main investor, in Hangzhou, China.

The vans would be used for FedEx’s commercial and residential pick-up and delivery services in California.

(Reporting by Arunima Banerjee in Bengaluru; Editing by Shounak Dasgupta)

Image from www.chanje.com

FedEx To Hire 55,000 Workers For The Holiday Season

(Reuters) – FedEx Corp said on Wednesday it would hire about 55,000 workers and increase hours for some existing employees for the holiday shopping season as the U.S. package delivery company prepares to cater to the expected jump in shipments due to online shopping boom.

The company said it would also expand its U.S. ground-shipping operations to six and seven days per week for the busiest shopping season of the year.

FedEx said the six-day ground-shipping operations would be extended throughout its U.S. network all-year round.

“The rise in demand for e-commerce goes beyond peak. It’s a year-round phenomenon…,” said Raj Subramaniam, chief marketing and communications officer.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila)

FedEx Announces Order for 24 Medium and Large Freighters

Boeing and FedEx Express today announced a new order for 12 767 Freighters and 12 777 Freighters as the world’s largest air cargo carrier continues to invest in the industry’s most capable freighters to better serve its customers.

“We are taking another positive step in our fleet modernization program as we add more efficient, lower emission aircraft to our global fleet,” said David L. Cunningham, President and CEO of FedEx Express. “The Boeing 767 and 777 Freighters have brought greater efficiency and reliability to our air operations. The 777, with its tremendous range characteristics, has allowed us to provide faster transit times around the globe. We are excited to add more of these aircraft to our fleet.”

The new airplanes, valued at $6.6 billion at list prices, will appear on Boeing’s Orders and Deliveries webpage once contingencies have been met.

This order comes as the air cargo industry continues to gather strength. A year after demand grew by nearly 10 percent, global air freight is on track to increase by another four to five percent in 2018.

Air cargo carriers are adding capacity to keep up with demand, either by converting passenger airplanes into freighters or ordering new production cargo jets. With the latest order from FedEx Express, Boeing has sold more than 50 widebody freighters in 2018.

“We are honored that FedEx has again placed its trust on the wings of the Boeing 767 and 777. This repeat order is a big vote of confidence in Boeing’s market-leading freighter family and the long-term outlook for air freight,” said Kevin McAllister, president and chief executive officer, Boeing Commercial Airplanes.

FedEx Express and Boeing have a long-standing partnership. The express carrier is a major operator of the Boeing 757 Freighter and the largest operator of the 767 Freighter and 777 Freighter. FedEx is also a customer of Boeing’s Global Services business.

Photo and story from: www.boeing.com

OneJet Going After Business Travelers Left Behind

The founder of small, start-up carrier OneJet is banking that a decade of megamergers among U.S. airlines has left it with perfect conditions to compete.

The airline started flying three years ago, going after business travelers for companies like FedEx in midsize cities that large carriers pulled back from following the wave of consolidation.

Click the link below for the full story!

OneJet Going After Business Travelers Left Behind

Visit the OneJet website at the link below!

OneJet Services

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