Third corporate bond of 1.5 billion euros issued in 2021
Lufthansa Group takes advantage of favorable market conditions
Placement with two maturities of two and five-and-a-half years complements Lufthansa Group’s maturity profile
Deutsche Lufthansa AG (OTC: DLAKY) has again successfully issued a bond with a total volume of 1.5 billion euros. The bond, with a denomination of 100,000 euros, was placed in two tranches with terms of two and five-and-a-half years respectively. The tranche with a term until 16 November 2023 has a volume of 600 million euros and bears interest of 1.625 percent per year. The tranche with a term until 16 May 2027 has a volume of 900 million euros and bears interest of 2.875 percent. The two tranches over two and five-and-a-half years fit perfectly into the Group’s maturity profile.
Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG, stated: “The long-term funds, which were again raised at attractive terms, will be used to further strengthen the Lufthansa Group’s liquidity and refinance existing debt. This placement is one of several successful capital market transactions that we have executed since the end of last year and will further contribute to the full repayment of the government stabilization measures in Germany.”
The JAL Group (OTC: JAPSY; Tokyo: 9201.T) today announced further reductions on its domestic network plan through March 11, 2021. With the state of emergency in effect through March 7, travel demand is expected to decline. As such, the JAL Group will reduce additional flights within the month of February and the beginning of March. For flights between March 12-31, the carrier plans to announce details on February 18, 2021.
The JAL Group has implemented key measures against COVID-19 to provide our customers with a safe and secure travel experience. We sincerely apologize for any inconvenience, but would like to ask for our customer`s understanding during this unprecedented time.
Note – Figures Include JAL Group Operated Flights (JAL, J-AIR, JAC, HAC, JTA, RAC)
– Four aircraft to be converted initially to support the company’s e-commerce solutions
Azul S.A., “Azul” (NYSE: AZUL), announces today that it has received certification for the world’s first Embraer E195 adapted dedicated cargo aircraft. The first aircraft began commercial services on Saturday, September 26th. Another three aircraft are expected to be adapted by the end of 2020, delivering a unique and focused solution to the Company’s e-commerce customers. Two of the four planes have already been dedicated to an e-commerce provider for a period of at least six months.
The four E-jets will join the Company’s two dedicated Boeing 737-400 freighters, for a total of six aircraft dedicated for Azul Cargo Express, Azul’s cargo business unit. In addition, the Company’s dedicated fleet capabilities are further expanded by its five ATR 72-600 Quick-Change aircraft. These dedicated cargo aircraft, together with belly capacity on Azul’s passenger network, the largest in Brazil, gives the Company’s customers exclusive access to the broadest, fastest and most efficient range of logistics services.
“We are excited to continue diversifying our business model with the adaptation of these four Embraer aircraft. The size, range, and performance of the E195, gives it the perfect combination of payload capacity, volume capacity and low trip-cost economics allowing fast and efficient logistics access all around Brazil. We are seeing record demand for the services provided by Azul Cargo Express and are pleased to innovate to further meet the needs of our customers. With the combination of our dedicated aircraft, belly capacity on the largest domestic network in Brazil, and our extensive ground partnerships, we are ready to meet the growing need of all our logistics and especially all our e-commerce customers. Our logistics solutions have the potential to transform e-commerce in Brazil”, says John Rodgerson, CEO of Azul.
SBB and ÖBB are stepping up their long-standing cooperation in international passenger services. The two railway companies are seeking to scale up the existing night train services from six to ten lines. Planning is underway for new night trains from Switzerland to Amsterdam, Rome and Barcelona. Last week, SBB and ÖBB signed a corresponding Letter of Intent. The planned expansion of services can only be guaranteed with financial support from the Swiss climate fund.
Demand for international night train services significantly increased in 2019 and at the start of 2020 until the coronavirus crisis struck. The number of passengers using night train services from Switzerland grew by over 25 per cent with respect to the previous year. The two partner railways consider this a sustainable trend given the significant rise in customer demand for environmentally friendly and resource-efficient travel. There is clear evidence to show that night trains have a positive effect on overall emissions, as they generate modal shift from other modes of transport to rail. ÖBB and SBB share the goal of shifting more travel to rail and thus contributing to a reduction in CO2 emissions from the travel sector. This commitment reflects the aims of the Paris Agreement on climate change and the political and public will to develop an attractive night train network as an important component of environmentally friendly and sustainable mobility in Europe.
With its 19 Nightjet lines and eight further services provided in cooperation with partner railways, ÖBB already runs Europe’s largest night train network. This includes the network from Switzerland run in cooperation with SBB, comprising six lines and one additional service. SBB and ÖBB want to build on this success and expand night train services in Europe together. Over the last few months, the companies have thoroughly tested and evaluated various options for expanding the service. By cooperating, the railway companies will be able to make use of synergies in production and marketing of the service offer and save on costs. In the Letter of Intent signed last week, the two railway companies presented their strategy for expanding services as outlined in “2024 Nightjet Network for Switzerland”. The plans involve expanding the Nightjet network from Switzerland to incorporate a total of ten lines and 25 destinations.
Cornerstones of the expansion plan:
– From 2022 timetable onwards: new Nightjet connection to Amsterdam. As a first step in the expansion process, the two railway companies want to launch a new daily Nightjet service running Zurich–Basel–Frankfurt–Cologne–Amsterdam in December 2021. However, the very limited availability of rolling stock suitable for night train services restricts short-term service expansion. SBB therefore intends to lease suitable rolling stock from German leasing company RDC Asset GmbH.
– Increasing capacity on services to Berlin, Hamburg and Prague and new connection to Leipzig and Dresden. The services currently provided from Zurich via Basel to Berlin and Hamburg are increasingly popular. Capacity on this route will therefore be expanded significantly. SBB and ÖBB wish to serve both destinations with two separate trains covering the whole route, if possible from the 2023 timetable change. This will enable a significant capacity increase. They also plan to run the service to Prague via Germany as a portion of the Berlin Nightjet with sleeping cars and couchettes. The new route would also provide a direct connection to Leipzig and Dresden.
– Plans for new connections to Rome and Barcelona. There are plans for a new line connecting Zurich via Bern, Brig, Domodossola to Rome. A daily connection from Zurich via Bern, Lausanne, Geneva to Barcelona is also planned. This would also integrate French-speaking Switzerland directly into the night train network. It is not yet clear whether it will be possible to run these two lines, as agreements with other partner railways are yet to be reached.
To ensure that night train services can be expanded in the medium to long term, ÖBB is also investing in new rolling stock. The new night train sets are to come into service gradually over a period of time.
SBB and ÖBB are campaigning for greater political support for night trains.
Alongside the planned service expansion, SBB, ÖBB and other partner railways are campaigning for transport policies which facilitate night train operations in Europe. In Switzerland, the total revision of the CO2 Act after 2020 is being debated in the autumn session of the Federal Parliament. The Act provides for support for cross-border rail services from the climate fund. Last week, the Swiss Parliament voted in favour of supporting international passenger services, including night trains. While subject to a final vote and a possible referendum, financial support from the climate fund would compensate for the losses SBB would sustain given the high operating costs night train services involve.
ÖBB is the largest provider of night train services in Europe and has contributed significantly to maintaining night trains services from Switzerland in its existing partnership with SBB. Andreas Matthä, ÖBB CEO, said: “We have no doubts about the Nightjet’s success. With SBB as a committed and effective partner, we can continue to expand the Nightjet network even further. We are investing in new trains: 13 latest generation Nightjet sets will be in operation from the end of 2022. With additional services and modern rolling stock, taking the night train will become an even more attractive option.”
SBB CEO Vincent Ducrot has no doubt that demand for fast daytime services and night trains will continue to grow. “This is a sustainable trend and the demand for environmentally friendly and resource-efficient mobility will continue to increase.”
SBB and ÖBB consider night train services as an important element of the overall service offer and see great potential for creating synergies with daytime services. An attractive rail offer helps to achieve the goal of modal shift from short-haul flights to rail.
The Helicopter Company (THC), which is fully owned by the Public Investment Fund (PIF) of Saudi Arabia, today announced that it has signed a purchase agreement with Airbus Helicopters to purchase 10 H125 helicopters. The deal comes as part of THC’s commitment to further expand its fleet and introduce new services that fulfill market demand and support the development of the Kingdom’s wider aviation sector.
Considered a multi-task aircraft, the Airbus H125 can carry up to six passengers and be easily reconfigured to suit varying requirements. THC will utilize the new additions to its fleet to roll out new services related to scenic tourism and aerial work such as filming, banner towing, and surveying.
Commenting on the purchase agreement, Capt. Arnaud Martinez, CEO of THC said: “By signing this agreement, THC has taken a massive step in expanding its fleet and implementing its ambitious operational plan. We are proud to be contributing to the advancement of Saudi Arabia’s tourism and aviation industries through our innovative air transport services that guarantee passengers a one-of-a-kind experience to relish the beauty of the Kingdom from above. I would like to thank our partners at Airbus Helicopters who have ensured we have reached an agreement that matches our requirements, and we look forward to furthering our collaboration in the near future. I would also like to extend our thanks to PIF for their enduring support since our founding as we work together to advance Saudi Arabia’s aviation industry.”
PIF established THC as part of its strategy to activate new sectors in Saudi Arabia that support the realization of Vision 2030 and generate long-term commercial returns. The Kingdom’s first local commercial helicopter operator, THC has been offering private flights since mid-2019 and is now expanding its services with the addition of the H125 to its fleet. This new agreement will contribute to driving the development of Saudi Arabia’s nascent and increasingly dynamic tourism and aviation industries and support the integration of each sector’s respective value chains.
Outbreak of the coronavirus disease (COVID-19) in Renton, Washington
PARIS (Reuters) – Safran <SAF.PA> shares rose on Thursday after Boeing <BA.N> said it would restart production of its 737 MAX jet and announced further cost-cutting measures.
Shares in the French aerospace firm, which co-produces the 737 MAX’s engines with General Electric <GE.N>, were up 2.2%, while Airbus <AIR.PA> shares were 0.7% higher.
Boeing said on Wednesday it was eliminating more than 12,000 U.S. jobs, including 6,770 involuntary layoffs, as the largest American planemaker restructures in the face of the coronavirus pandemic. The move nevertheless lifted Boeing’s shares.
The U.S. rival to Airbus said it had restarted 737 MAX production at a “low rate” at its Renton, Washington factory. Reuters reported in April that regulatory approval for the MAX was not expected until at least August.
(Reporting by Sudip Kar-Gupta; Editing by David Goodman and Alexander Smith)
The Safran company logo is pictured at the company’s logistic area in Colomiers near Toulouse
Boeing is extending the temporary suspension of production operations at all Puget Sound area and Moses Lake sites until further notice. These actions are being taken in light of the company’s continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities.
During the suspension, the company will continue to implement additional health and safety measures at its facilities to protect employees. These measures include new visual cues to encourage physical distancing, more frequent and thorough cleaning of work and common areas and staggering shift times to reduce the flow of employees arriving and departing work, among many other improvements.
“The health and safety of our employees, their families and our communities is our shared priority,” said Boeing Commercial Airplanes President and CEO Stan Deal. “We will take this time to continue to listen to our incredible team and assess applicable government direction, the spread of the coronavirus in the community and the reliability of our suppliers to ensure we are ready for a safe and orderly return to operations.”
The volunteers who have been supporting essential site and services work should continue to report to their assigned shifts. Puget Sound area and Moses Lake employees who can work from home should continue to do so.
As the suspension of operations continues, Boeing will monitor government guidance and actions on COVID-19 and associated impact on all company operations. Boeing sites that remain open are being monitored and assessed on a daily basis.
Airline to serve San Francisco and Los Angeles daily
American Samoa weekly starting in April
Hawaiian Airlines is reducing its April flight schedule due to the COVID-19 pandemic with a commitment to continue offering its guests and cargo customers essential service within the Hawaiian Islands and between Hawai‘i and California and the U.S. territory of American Samoa.
The airline will maintain a reduced but still robust schedule of Neighbor Island flights, while bolstering all-cargo service to ensure goods continue to reach communities statewide.
“As Hawai‘i’s airline, we understand that our operation is essential to the state. We serve both guests who rely on us for important travel and the transportation of critical cargo,” said Hawaiian Airlines President and CEO Peter Ingram. “This has been the hallmark of our mission for 90 years and our dedication to our guests remains unchanged as we look to overcome this global crisis together.”
Starting Sunday, Hawaiian’s long-haul transpacific network will consist of one daily nonstop flight between Honolulu (HNL) and Los Angeles (LAX) and San Francisco (SFO), and one weekly flight connecting Hawai‘i to its Pacific island neighbor of Pago Pago, American Samoa (PPG). All routes will be operated with wide-body Airbus A330 aircraft.
The California routes present cargo opportunities to help maintain service for shippers affected by the reduction in passenger flights due to the state of Hawai‘i’s mandatory 14-day quarantine for overseas arrivals starting tomorrow in an effort to prevent the spread of COVID-19. The HNL-PPG route maintains vital service for the territory of American Samoa.
Guests traveling on Hawaiian’s Neighbor Island network will continue to enjoy convenient options throughout the day with 41 daily roundtrip flights scheduled for April. From Honolulu there will be 38 daily flights, including 13 to Maui, eight to Kona, seven to Kaua‘i, six to Hilo, and two each to Lāna‘i and Moloka‘i. From Maui there will be one roundtrip each to Hilo, Kaua‘i and Kona in addition to Honolulu service.
Hawaiian’s schedule reductions for April resulted from the state of Hawai‘i’s quarantine entry restriction and the ensuing drop off of travel to and from the islands. Hawaiian is operating its regularly scheduled long-haul flights through today before it begins suspending routes tomorrow.
Meanwhile, Hawaiian has expanded interisland cargo service to facilitate the movement of essential goods ranging from food to medical equipment and machinery.
On March 3, a fleet of all-cargo ATR-72 aircraft operated by ‘Ohana by Hawaiian began offering flights five days a week between Honolulu and Kahului (OGG) on Maui and Kona (KOA) on the western coast of the Island of Hawai‘i. The new routes add to all-cargo service launched in summer of 2018 between HNL and Līhu‘e (LIH) on Kaua‘i and Hilo (ITO) on the eastern coast of the Island of Hawai‘i.
Hawaiian also utilizes its Boeing 717 passenger fleet to carry critical, time-sensitive cargo like pharmaceuticals and Blood Bank of Hawai‘i shipments.
Hawaiian is still experiencing an unprecedented volume of calls from guests and respectfully asks that only those with immediate travel needs contact the airline for assistance. Options to reach Hawaiian’s reservations team, to make online changes to tickets, and to see a list of travel waivers are available at Hawaiian’s COVID-19 hub.
The airline also explains how it is keeping employees and guests safe by disinfecting aircraft and airport spaces, modifying boarding processes to prevent congestion at the gate, and adjusting in-flight services such as by distributing disposable sanitizing wipes.
We thank the Administration, especially the President and Secretary Mnuchin, as well as the Senate for working together to take swift bipartisan action to support the American economy, including the 2.5 million jobs and 17,000 suppliers that Boeing, the aerospace industry and the U.S. rely on to maintain our world leadership in commercial, defense and services. The bill’s access to public and private liquidity, including loans and loan guarantees, is critical for airlines, airports, suppliers, and manufacturers to bridge to recovery.
Boeing’s top priority is to protect our workforce and support our extensive supply chain, and the CARES Act will help provide adequate measures to help address the pandemic. We have also taken a number of measures for affordability and liquidity as we navigate the challenges our industry currently faces, including forgoing pay for our CEO and board chairman, suspending our dividend until further notice, and extending our existing pause of any share repurchasing until further notice.
We appreciate the House taking swift action to support the American people.
Norwegian is pleased to announce that two Nordic banks have obtained credit committee approval to provide a guarantee for the required 10 percent for the first tranche of 300 million Norwegian kroner (NOK). Norwegian will secure the necessary headroom to pursue further guarantees from the Norwegian Government.
Government measures On Thursday 19 March, the Norwegian Government proposed a guarantee of NOK 6 billion for the Norwegian airline industry, of which up to NOK 3 billion is directed to Norwegian. The guarantee will be up to 90 percent from the Norwegian Government provided that financial institutions contribute with the remaining 10 percent. The guarantee scheme will consist of three tranches with a maximum two years maturity.
Since Thursday evening Norwegian has worked with banks and financial institutions and is pleased to announce that two Nordic banks have obtained credit committee approval to contribute with the 10 percent required in guarantee for Tranche I and to provide the NOK 300 million in financing backed by the guarantee from the Norwegian Government. The Company is working with the banks and the Norwegian Export Credit Guarantee Agency (“GIEK”), who will administrate the guarantee scheme, on the documentation in order to obtain the NOK 300 million in liquidity as soon as possible.
The Company is now working with GIEK and the Ministry of Trade, Industry and Fisheries to clarify the criteria and terms related to the remaining tranches under the scheme and to obtain further guarantees from financial institutions in order to back such remaining tranches. Norwegian will update the market with its further plan of action and implications for its stakeholders as soon as the criteria and terms have been finalized. The Government guarantee scheme is crucial for the Company as the current state of the capital markets in combination with the challenging times for the airline industry limit the options available. The first NOK 300 million will create necessary headroom to pursue the remaining tranches of the guarantee scheme.
Operational update Currently, most of the fleet is grounded and Norwegian has reduced its operations to a minimum. The airline will now primarily operate domestically in Norway and Sweden and between the Nordic capitals, in order to deliver on its corporate responsibility of maintaining critical infrastructure so that people and necessary goods and medical supplies can be transported during this unprecedented crisis. The limited schedule will remain in place until further notice. In addition, Norwegian has conducted repatriation flights together with the authorities in order to get citizens of Norway, Denmark and Sweden back home.
In order to reduce cost, Norwegian has temporarily laid off approximately 90 percent of its workforce and will continue to implement additional cost measures going forward.
