Qantas Airways Ltd (Sydney: QAN) is adding another direct service between Australia and Europe with the launch of a new route between Perth and Paris, just in time for the 2024 Olympic and Paralympic Games and European summer.
Following the success of the national carrier’s unique direct flights from Perth to London and Rome, the new year-round route will see Qantas operate to the French capital for the first time in nearly two decades, cutting around three hours off the current fastest travel time from Perth to Paris.
From 12 July 2024, the 17-hour Perth-Paris flights will initially operate four days per week during the peak European summer with the airline’s Boeing 787 Dreamliner aircraft. Services will move to three per week from mid-August 2024.
Seoul, South Korea, October 16, 2023 – Embraer SA (NYSE: ERJ) Defense & Security products and solutions, with one of the most comprehensive portfolios and innovative solutions for the defense and security markets, will be presenting at ADEX 2023 in Seoul, South Korea. Embraer’s solutions are present in more than 60 countries, include the C-390 Millennium multi-mission transport aircraft and the A-29 Super Tucano light attack and training aircraft, in addition to broader solutions for air, land, sea, and space domains.
Last year, Embraer signed several Memorandum of Understanding with Korean aerospace companies AeroSpace Technology of Korea (KOSDAQ: 067390), EMKorea Co Ltd (KOSDAQ: 095190), and Kencoa Aerospace Corp (KOSDAQ: 274090) with the objective of strengthening collaboration with Korean defense industry partners for the future supply of parts for the Embraer C-390 Millennium aircraft.
The C-390 Millennium is currently under operation with the Brazilian Air Force (FAB), where the existing fleet is presenting operational availability of 80% and mission accomplishment rates in excess of 99%, demonstrating exceptional productivity for this aircraft segment. Besides Brazil, Portugal, Hungary, the Netherlands and most recently Austria have selected the C-390 to modernize their military transport aircraft fleets.
Tokyo, Japan – Japan Airlines Co., Ltd. (Tokyo Stock Exchange: 9201) and REGENT Craft Inc. (Headquarters: United States, CEO: Billy Thalheimer, hereinafter referred to as “REGENT”) have announced the signing of a comprehensive partnership agreement to establish a system for seaglider operations in Japan. The agreement follows a strategic investment in REGENT made earlier this year by JAL Innovation Fund, the CVC of JAL. Through this agreement, the two companies aim to implement next-generation mobility where people can move safely and comfortably with zero emissions.
The all-electric seagliders being developed by REGENT are wing-in-ground effect craft that fly several meters above the water on a cushion of air trapped between the wings and the water’s surface. Seagliders are attracting attention as a new form of sustainable mobility, further expanding the possibilities of new transportation methods that do not place a burden on the environment, as well as the development of new markets.
The new agreement signifies a commitment to deepen business development between the two companies. With the goal of establishing a system of seaglider operations in Japan, JAL aims to utilize its accumulated knowledge of safe operation while REGENT brings its technological expertise to the table. Together, the companies will collaborate to drive awareness and understanding of seagliders in the region, identify jurisdictions for seaglider operations by JAL and JAL Group operators, develop infrastructure for seaglider operations – including a planned demonstration flight in 2025 – and obtain certification for the safe operation of electric seagliders. In addition, JALUX Co., Ltd. (location: Minato-ku, Tokyo, CEO: Satoru Takahama) will act as a sales agent for the maritime craft.
Toulouse, France, September 29, 2023 – Hong Kong’s Cathay Pacific Airways Ltd ADR (OTC: CPCAY) has announced the purchase of an additional 32 Airbus Group NV (OTC: EADSY) A320neo Family aircraft as it continues to invest in expanding and modernising its fleet. The agreement doubles the Cathay Group’s total orders for the A320neo Family to 64, of which 13 have already been delivered.
The 32 additional aircraft will comprise both the A321neo and A320neo which will join the fleets of Cathay Pacific and HK Express.They will principally serve destinations in the Chinese Mainland and elsewhere in Asia.
The A320neo Family incorporates the very latest technologies including new generation engines, Sharklets and aerodynamics, which together deliver at least 20 percent lower fuel burn and CO2 emission savings. With more than 9,700 orders from over 130 customers, the A320neo Family is the world’s most popular single aisle aircraft.
September 25, 2023, Qantas Airways Ltd ADR (OTC-QABSY) – The Qantas Group provides the following update to inform the market of a material increase to investment in customer improvements, continued strength in travel demand and the impact of elevated fuel prices.
CUSTOMER IMPROVEMENTS
The Group will invest a further $80 million in customer improvements across FY24 in addition to the $150 million previously budgeted, which will be funded from profits.
This additional investment is aimed at addressing a number of customer ‘pain points’ through improvements such as better contact centre resourcing and training, an increase in the number seats that can be redeemed with Frequent Flyer points, more generous recovery support when operational issues arise, a review of longstanding policies for fairness and improvements to the quality of inflight catering.
Qantas is also working to accelerate some initiatives already underway, such as the re-platforming of the Qantas app. More detail on these actions will be shared in coming weeks.
DEMAND LEVELS
Overall travel demand remains strong, with trading conditions in the first quarter of FY24 similar to the last quarter of FY23.
Qantas and Jetstar expect to carry more than 4 million passengers over the September/October school holidays and football finals period on almost 35,000 domestic and international services. This compares with around 3.7 million passengers on approximately 28,000 services over the same four week period last year.
Latest survey data shows that travel remains a top spending priority among Qantas Frequent Flyers over the next six months, well ahead of entertainment, renovations and homewares[1]. The Group greatly appreciates the continued support from customers choosing Qantas and Jetstar.
FUEL, FX AND FARES
Fuel prices have increased by around 30 per cent since May 2023, including a 10 per cent spike since August. This is driven by a combination of higher oil prices, higher refiner margins and a lower Australian dollar.
If sustained, this is expected to see the Group’s 1H24 fuel bill increase by approximately $200 million to $2.8 billion after hedging[2]. A further $50 million impact is expected due to non-fuel related foreign exchange changes.
The Group will continue to absorb these higher costs, but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings. Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated.
CAPACITY AND NETWORK UPDATE
New aircraft deliveries and wet-leasing arrangements will help Qantas and Jetstar boost international capacity by 12 percentage points by the end of the calendar year – an increase of almost 50 additional flights a week.
This includes Qantas resuming its Sydney-Shanghai services and starting two new routes, Brisbane-Wellington and Brisbane-Honiara, as well as a new Jetstar service from Brisbane to Tokyo.
Both international and domestic capacity for 1H24 is materially unchanged from estimates given in late August 2023.
FINANCIAL FRAMEWORK
The Group remains in a very strong financial position, including its debt levels and continued strong revenue intakes.
The on-market share buyback of up to $500 million announced on 24 August 2023 is now 10 per cent completed. Shareholder approval will be sought at Qantas’ upcoming AGM to increase the headroom for further share buybacks that the Board may choose to do in future in line with the Financial Framework.
[1] QFF sentiment tracker,n=2,019.Data collected between 1 August 2023 and 31 August 2023. Sample of QFF members from Red Planet panel. Based on respondents’ intended changes to upcoming spending across different categories.
[2] Assumes 1H24 underlying into-plane market reference price of approximately A$191 per barrel.
Olathe, Kansas, August 7, 2023, PR Newswire – Garmin Ltd. (NYSE: GRMN), today announced it has entered into a definitive agreement to acquire JL Audio, a privately-held U.S. company that designs and manufactures audio solutions for marine, aftermarket automotive, powersports, home and RV customers.
With over four decades of experience, JL Audio offers premium audio products and accessories, including speakers, amplifiers, subwoofers and other audio components.
JL Audio is headquartered in Miramar, Fla., and employs more than 600 associates. The completion of this acquisition is expected to occur by the end of 2023 and is subject to customary regulatory approvals and closing conditions. All existing JL Audio products will continue to be supported post-closing, and customers can expect to continue receiving the same great customer service. Financial terms of the acquisition will not be disclosed.
MESA, Arizona, July 14, 2023– MD Helicopters, LLC, is pleased to announce that Mt Hutt Aviation and 369 Ltd have teamed together to join MDH’s network of Authorized Service Centers (ASC). Together these organizations will increase the level of service and support to MDH aircraft in New Zealand and the surrounding Australasia region. Currently their combined maintenance services include over 40% of the MDH aircraft operating in this region.
With a combined 50+ years of experience maintaining helicopters between each organization, MHA and 369 capabilities include maintenance, avionics, refurbishment, and specialty paint services.
About Mt Hutt Aviation
Established in 2013, Mt Hutt Aviation delivers fleet management support and maintenance between two purpose-built facilities in Canterbury. In addition to maintenance capabilities, MHA offers 24/7 support on time-critical projects as well as on-site engineering and avionics services.
About 369 Ltd
Based in Tauranga in the North Island, 369 is a family operated business with decades of experience working exclusively with the MDH airframe. Their services include maintenance and repair on the full line of civilian single-engine MD Helicopters models.
About MD Helicopters
MD Helicopters, LLC (MDH) manufactures high-performance rotorcraft solutions that support operators flying military, commercial, law enforcement, utility, and VIP mission profiles. With thousands of aircraft in service worldwide, MDH has been designing and building aircraft known for their safety, versatility, responsiveness, speed, and reliability since 1947. Our commitment to product sustainment and customer success allows MDH to deliver aircraft unmatched in their performance and reliability. MD Helicopters, LLC is owned by an investment consortium comprised of MBIA Insurance, Bardin Hill Investment Partners LP, and MB Global Partners.
HONG KONG/SINGAPORE (Reuters) – Hong Kong flagship carrier Cathay Pacific Airways Ltd said on Tuesday it is in “active discussions” about an acquisition involving budget airline Hong Kong Express Airways Ltd, although an agreement has yet to be reached.
Such
a deal would give Cathay exposure to the growing budget-travel market
at a time when a lack of slots at Hong Kong International Airport has
constrained its ability to follow peers like Singapore Airlines Ltd and
Qantas Airways Ltd and set up its own budget brand.
The
Hong Kong carrier has instead shifted some destinations from its main
brand to its regional carrier, Cathay Dragon, as part of a
transformation plan designed to cut costs and increase revenue. It has
ordered 32 Airbus SE A321neos for Cathay Dragon.
Cathay
said it had decided to go public about the discussions in response to
media reports suggesting it may be in talks to acquire shares in Hong
Kong Express Airways Ltd and full-service sister carrier Hong Kong
Airlines Ltd from cash-strapped Chinese conglomerate HNA Group Co Ltd.
It
did not detail the potential value of the transaction, nor the size of
the stake it would hold. It said it would issue an additional statement
when appropriate.
An analyst last year estimated to Reuters that HK Express could be worth about $300 million.
HNA and HK Express did not immediately respond to a request for comment.
A
person with knowledge of the matter said the companies appeared close
to reaching an agreement and noted Cathay’s parent Swire Pacific Ltd had
historically taken majority stakes when making investments.
Cathay is not interested in Hong Kong Airlines because it has both similar routes and full-service positioning, the person said.
A
second person with knowledge of the matter said Cathay had signed an
exclusivity period for discussion but other parties remained interested
in HK Express if a deal could not be reached.
Both sources spoke on the condition of anonymity as discussions are confidential.
ANTITRUST
Given Cathay’s dominance of Hong Kong’s aviation market, a deal could attract scrutiny from the competition regulator.
Some
analysts have also expressed doubts about the likely benefits of any
deal. Daiwa analyst Kelvin Lau said he did not see much value from the
acquisition as the two airlines flew similar routes, but also because
Cathay would need to undertake significant reform to add a budget wing.
Jefferies analyst Andrew Lee however said in a note to clients it would be “positive for Cathay Pacific” as it would give the airline greater access to a different passenger segment in the low-cost market.
FLYING HIGH
News
of Cathay’s interest in HK Express comes just weeks after Hong Kong’s
flagship carrier projected its annual profit at more than double analyst
estimates, sending its shares surging nearly 9 percent.
Shares
of Cathay have risen more than 19 percent so far this year, compared
with an 8 percent fall in 2018. The airline’s shares jumped more than 3
percent on Tuesday morning.
Cathay has faced repeated questions from investors over the last few years about its failure to set up a budget carrier.
Chief
Executive Rupert Hogg has said it would be difficult to do so until a
third runway was completed at Hong Kong International Airport in 2024,
opening up more slots.
“Our
home-based airport is full at the moment, or largely full, and so it’s
not a perfect place to develop a model from scratch,” he told CAPA
Centre for Aviation last May.
HK
Express operates a fleet of 25 A320 family aircraft to regional
destinations around Asia, according to plane tracking website
FlightRadar24.
Embattled
HNA Group is more than a year into the process of unwinding a $50
billion acquisition spree that at its peak netted the company stakes in
banks, fund managers, hotels, property and airlines, among other assets.
(Reporting by Donny Kwok in Hong Kong and Jamie Freed in Singapore; Additional reporting by Kane Wu in Hong Kong; Editing by Anne Marie Roantree and Stephen Coates)
(Reuters) – Jet Airways Ltd, India’s biggest full-service carrier, has been under dark clouds for the most part of the past year, and several efforts are on to save the sinking airline.
While intense pricing competition, weak rupee and rising fuel costs have hurt Indian airlines like IndiGo owned by InterGlobe Aviation Ltd and SpiceJet Ltd, Jet Airways is in a league of its own.
Saddled with a debt of about 80.52 billion rupees ($1.14 billion) as of Sept. 30, Jet is desperately searching for a deal that could help mitigate its severe liquidity crunch. The airline has a market capitalisation of 28.81 billion rupees as of Friday’s close.
Here’s how Jet has fared:
May 3 – Jet shares fall 12.3 percent after InterGlobe Aviation reported a slump in net profit for March-quarter a day earlier
May 23 – Jet posts first quarterly loss in at least 12 quarters, says it has a negative net worth that ‘may create uncertainties’
Aug 1 – Media report says Jet asked employees to take an up to 25 percent cut in salaries as a part of a cost cutting measure
Aug 3 – Jet denies report that it cannot fly beyond 60 days, and dismisses conjecture of stake sale
Aug 9 – Airline defers board meet for first-quarter results
Aug 11 – After State Bank of India chairman says Jet’s loan is on the bank’s watch list, Jet says it is regular in payment obligations to all banks
Aug 13 – Airline reaffirms that it is considering various options to meet its funding requirements
Aug 15 – Report says U.S. private equity firm Blackstone Group LP is in talks to buy a stake in Jet’s frequent-flier loyalty programme JetPrivilege
Aug 20 – Sources tell Reuters that private equity firm TPG Capital is considering investing in Jet, but is not close to finalising a deal
Aug 27 – Jet posts loss for the June-quarter, says it will inject funds and cut costs by more than 20 billion rupees in two years
Sept 4 – Government plans relief package for airlines
Sept 6 – Jet says it paid salaries to 84 percent of its employees after reports emerge that pilots warned ‘non-cooperation’ over salary default
Sept 20 – Income Tax department conducts survey at Jet’s premises
• Over two dozen passengers on a Jet flight are treated for minor injuries after the plane loses cabin pressure
Oct 4 – Rating agency ICRA downgrades the company’s long term loans and NCDs, citing impact of steep increase in jet fuel prices, rupee depreciation, delay in implementation of liquidity initiatives
Oct 18 – Report says Indian conglomerate Tata Group is in talks to buy stake in Jet. Jet calls report “speculative”
Oct 30 – U.S.-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways
Nov 5 – Report says Tata aims to buy the 51 percent stake in the airline owned by Naresh Goyal, and Etihad Airways’ 24 percent stake, and merge Jet with Vistara
Nov 12 – Jet posts third straight quarterly loss, chief executive officer Vinay Dube expresses confidence in overcoming current challenges
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
Jet executive says company is in talks with multiple parties for a stake sale in its loyalty program, and equity infusion in the airline
Nov 15 – Shares surge nearly 25 percent following reports that the debt-laden airline was nearing a rescue deal with Tata Sons; another report says the Indian government asked Tata to explore buying Jet
Nov 16 – Tata Sons says discussions on Jet is preliminary and no proposal has been made
Nov 20 – Tata Sons may go slow on Jet deal after some directors from Tata’s board expressed concerns, according to media reports
Nov 21 – The airline says news on Naresh Goyal, Etihad discussing merger of JetPrivilege with Jet Airways is speculative
Nov 22 – Independent director Ranjan Mathai resigns, citing rising pressure from other commitments
Nov 26 – Report says Naresh Goyal may hand over Jet Airways ops to Etihad Airways
Dec 3 – Jet says it will stop providing free meals to most domestic economy class passengers from January, in its latest move to cut costs and boost revenues
Dec 5 – Jet and Etihad Airways have been holding rescue talks with Jet’s bankers, sources tell Reuters
Dec 6 – Jet tells its pilot union it will clear all salary dues by April, and gives them schedule outlining when the payments will be made, source tells Reuters
Dec 7 – ICRA cuts Jet rating yet again, cites delays in implementation of the proposed liquidity initiatives by Jet’s management
Dec 14 – Goyal’s penchant for control has come up as a major obstacle as the airline tries to negotiate a rescue deal, several people who have worked closely with him or known him over the years tell Reuters
Jan 2 – The airline says it has delayed payment to a consortium of Indian banks, led by SBI; ICRA cuts rating again
Jan 10 – Jet proposes to creditors that it will catch up with debt payments in arrears by September and from April will meet debt payments as they come due, according to a document seen by Reuters
Jan 11 – Crisis talks between Jet and aircraft lessors have failed to ease a row over late payments, prompting some lessors to explore taking back aircraft, three people familiar with the matter tell Reuters. Etihad is not “in any position to sink new equity into Jet at this juncture,” says a person familiar with Etihad’s position.
($1 = 70.5090 rupees)
(Compiled by Arnab Paul and Chris Thomas in Bengaluru; Editing by Gopakumar Warrier)
