The Boeing logo is displayed on a screen, at the NYSE in New York
BRASILIA (Reuters) – Brazilian antitrust regulator Cade on Monday approved Boeing Co’s <BA> purchase of Embraer SA’s <ERJ> commercial aviation division without restrictions, according to a statement on the agency’s website.
Cade’s top administrative council could still call for a reconsideration of the case, putting the matter to a vote.
The companies welcomed the move on Monday, with Boeing saying it remained confident of getting approval from the European Commission, the last hurdle to the transaction.
The European Union has set an April 30 deadline to decide on the deal.
Boeing has offered to pay $4.2 billion for 80% of Embraer’s commercial jet division, which builds passenger jets in the 70- to 150-seat segment.
That puts it in direct competition with next-generation jets designed by Bombardier Inc <BBD-B.TO> and acquired by Europe’s Airbus SE <EADSY>, which rebranded them the A220 program.
(Reporting by Ricardo Brito; additional reporting by Kanishka Singh; Writing by Jake Spring; Editing by Sandra Maler, Marguerita Choy and Aditya Soni)
E2-195 plane with Brazil’s No. 3 airline Azul SA logo is seen during a launch event in Sao Jose dos Campos
HONG KONG, Dec 2 (Reuters) – Cash-strapped Chinese conglomerate HNA Group said on Monday it has agreed a deal to restructure its low-cost carrier West Air with a Chongqing-based asset management firm.
Chongqing Yufu Asset Management Group and its affiliates will together hold at least 70% stake in West Air, becoming the biggest shareholder, HNA said in a statement.
West Air, established in 2007, operates about 160 domestic and international routes with a fleet of 35 airplanes.
It has been directly controlled by HNA, whose affiliates also own struggling Hong Kong Airlines as well as Hainan Airlines Holding Co Ltd.
Budget carrier Hong Kong Airlines was ordered by Hong Kong’s air transport regulator on Monday to shore up its financial position by Dec. 7 or risk the suspension or loss of its licence.
Hainan Airlines, which has seen declining profits, said in a Shanghai stock exchange filing on Monday that it will seek 4 billion yuan ($568 million) in loans from eight banks led by China Development Bank.
The funds will be used to cover the costs of fuel, maintenance charges, staff salaries and operational expenses, it said in the filing.
$1 = 7.0389 Chinese yuan renminbi
Reporting by Meg Shen; Editing by Edmund Blair and Susan Fenton
The logo of IndiGo Airlines is pictured on passenger aircraft on the tarmac in Colomiers near Toulouse
NEW DELHI (Reuters) – India’s air safety watchdog said IndiGo must do more to fix its aircraft fitted with Pratt & Whitney engines, linked to in-flight shutdowns, as it fears the budget airline may not meet its Jan. 31 deadline to replace them.
Deliveries of new planes taken by IndiGo must be used to replace the aircraft that are fitted with the problem Pratt engines, the Directorate General of Civil Aviation (DGCA) said on Monday. Those planes should then be grounded until their engines are replaced with new ones, after which they can fly again.
Indigo is the biggest customer of Airbus A320neo jets.
The regulator’s move effectively prevents India’s top airline from expanding its network until it has replaced all the Pratt & Whitney engines.
United Technologies’ Pratt & Whitney engines have consistently caused issues since they entered into service in 2016, forcing IndiGo to ground its planes several times.
In a recent review meeting with the airline, the DGCA felt that the steps taken by IndiGo so far to replace all the engines “do not instil enough confidence with regard to the timely completion of the said task”.
“If left unaddressed, we may find ourselves in a situation, in which, we remain saddled with large number of aircraft with unmodified engines … and we are left with the only option i.e. to ground them,” the regulator said in the statement.
On Nov. 1 the regulator had ordered the airline to replace all P&W engines on its fleet of almost 100 twin-engined Airbus A320neo family aircraft with new power units by Jan. 31, 2020.
If the replacement is not complete, all planes that still have unmodified engines will be grounded and could cause “large scale disruptions” in operations. The latest directive is aimed at preventing such a situation, the DGCA said.
IndiGo, owned by InterGlobe Aviation, said the current schedule remains intact, and it is working with P&W and Airbus to meet the DGCA guidelines.
(Reporting by Aditi Shah, editing by Louise Heavens)
BRASILIA (Reuters) – A Chinese antitrust regulator has approved Boeing Co’s <BA> deal to buy a controlling stake in the commercial jet division of Brazilian planemaker Embraer <ERJ>, according to a statement on the regulator’s website.
The Boeing-Embraer deal appears on a list dated Nov. 19 of transactions “approved unconditionally” that is posted to the website of the Chinese State Administration for Market Regulation’s anti-monopoly department.
The document gives no further details, only saying that the case was adjudicated 10 days earlier on Nov. 9.
Boeing, the world’s largest planemaker, has been seeking to finalize its purchase of 80% of Embraer’s commercial jet division in a bid to compete with Europe’s Airbus <AIR.PA> in the market for planes with fewer than 150 seats.
China’s approval comes as EU regulators have delayed a decision until both companies provide additional documents, which Embraer has said it is trying to do as soon as possible.
The companies originally said they expected to close the deal this year.
(Reporting by Jake Spring; Editing by Bill Berkrot)
– Market faces potential surplus of 1,000 jets next year
– Air Lease CEO less worried about surge in MAX deliveries
– Older aircraft won reprieve during MAX grounding
– Boeing aims to deliver record-matching 70 MAX a mth on return
HONG KONG, Nov 5 (Reuters) – Airlines struggling to cope with the grounding of the 737 MAX could face a markedly different problem when Boeing Co’s best-selling jet is cleared to re-enter service: a switch to concerns about aircraft oversupply, carriers have been warned.
The U.S. planemaker has continued to produce the jet since it was grounded in March after two fatal accidents, and is expected to speed deliveries by 40%, to 70 units a month, when its factory doors reopen, in a bid to clear the backlog.
Rob Morris, global head of consultancy at UK-based Ascend by Cirium, said the combination of any rapid rebound in deliveries, economic worries and an accumulation of market pressures dating back before the crashes could make it hard to absorb the jets.
“Next year is the challenge. When the dam breaks and the MAX starts to flow, there are going to be a lot of aircraft,” Morris told financiers at a Hong Kong briefing late on Monday.
“There could potentially be as many as 1,000 surplus aircraft next year.”
The forecast is based on both a rebound in MAX deliveries and a potential glut of second-hand airplanes flooding back onto the market after standing in for the MAX during the grounding.
The crisis has rekindled demand for older and less efficient jets, with airlines using more than 800 planes that are more than 15 years old, compared to conditions four years ago, Morris told the Airline Economics Growth Frontiers conference on Tuesday.
TWO-YEAR LOG JAM
Until now, most concern has focused on whether regulators would permit an orderly return to service by avoiding gaps in approvals by different countries.
But Morris, who has warned a long up-cycle in aviation is nearly over, said there were also risks in opening floodgates too quickly, overwhelming fragile growth in travel demand.
Still, he and other delegates at back-to-back aviation finance gatherings in Hong Kong agreed it would take Boeing 18 months or longer to deliver all the stranded aircraft.
The operation will be one of the industry’s biggest ever logistical challenges and any glitches or delays could further brake supply.
“Getting all those aircraft, that are currently parked, off the ground could take two years,” John Plueger, chief executive of Air Lease Corp, told Reuters, adding he did not see fundamental changes as a result of the MAX’s return.
“It is not as if all these MAX could be delivered over a one-, two- or three-month period … so it is not an open floodgate and 350 planes all coming onto the market tomorrow,” he said on the sidelines of last week’s Airfinance Journal Asia Pacific conference.
Boeing aims to return the 737 MAX to service in the United States by the end of 2019, after making software changes in the wake of the crashes, which killed 346 people.
Europe’s top regulator said on Monday the airliner is likely to return to service in Europe in the first quarter of 2020.
Analysts say more than 300 MAX aircraft have been produced since March, when commercial flights were banned and deliveries frozen. This could rise to 400 by the time it resumes service.
Boeing is additionally expected to deliver close to 600 jets straight from the production line next year. It has indicated it plans to deliver up to 70 jets a month, equal to a previous record. Of this, analysts say around 20 are expected to be drawn from inventory parked at its factories and the rest newly built.
(Reporting by Tim Hepher and Anshuman Daga in Hong Kong Editing by Matthew Lewis and Clarence Fernandez)
HONG KONG (Reuters) – Shares in Cathay Pacific Airways Ltd fell nearly 4% in early trade on Thursday following the resignation of its chairman after the market closed on the previous day.
The departure of John Slosar was announced less than three weeks after mounting Chinese regulatory scrutiny led to the shock exit of its chief executive, Rupert Hogg.
Cathay shares had closed 7.2% higher on Wednesday as the Hong Kong market was lifted by reports of the withdrawal of a controversial extradition bill, which was officially announced after the market closed.
Long-serving Swire Pacific Ltd executive Patrick Healy was appointed as Cathay’s new chairman on Wednesday following the resignation of Slosar, who had served in the role since 2014.
“As John would have retired soon anyway it’s not really a huge setback as a business,” an analyst said of Slosar’s departure. “However it’s always awful to see when politics dictate like this.”
The analyst, who was not authorised to speak publicly about personnel changes, said he believed if the political situation in Hong Kong stabilised, the situation at Cathay should as well.
Daiwa Capital Markets analyst Kelvin Lau said the extradition bill’s withdrawal was positive for Cathay, even though protests were not expected to end immediately.
“We expect this to be a turning point where the situation would at least not worsen,” he said in a note to clients, adding that recent personnel changes at the airline should satisfy the requirements of the Chinese regulator and were likely to instill confidence among customers.
China’s aviation regulator last month said crew who engaged in the anti-government protests in Hong Kong posed a threat to safety and should be suspended from staffing flights to the mainland and over its airspace.
(Reporting by Donny Kwok and Jamie Freed, writing by Jamie Freed, editing by Richard Pullin)
HONG KONG (Reuters) – Shares of Cathay Pacific Airways rose more than 2 percent early on Monday after CEO Rupert Hogg resigned in a shock move, as the carrier grapples with the involvement of some of its employees in the city’s anti-government protests.
Cathay’s shares rose as much as 2.3 percent to HK$10.84, their highest in two weeks. The carrier has emerged as the highest-profile corporate target as Beijing looks to quell protests in the territory that have gone on for 11 straight weeks.
Cathay Pacific was blindsided this month when China’s aviation regulator demanded it suspend staff supporting the anti-government protest movement.
(Reporting By Anne Marie Roantree and Donny Kwok; editing by Richard Pullin)
North Carolina boatbuilder will exclusively offer Garmin electronics as standard fit on all offshore sportfishing center consoles in 2020
Garmin International, Inc., a unit of Garmin Ltd. (NASDAQ:GRMN), today announced that Regulator Marine has selected Garmin to be its premier electronics supplier to outfit its full line of offshore sportfishing center console boats beginning model year 2020. Garmin electronics will be standard equipment on all Regulator boats ranging from 23 to 41 feet, including the new Regulator 26XO center console crossover, the company announced at its annual dealer meeting, July 23-25.
“It’s truly an honor to know that every new Regulator boat leaving the factory will include Garmin electronics,” said Dan Bartel, Garmin vice president of global consumer sales. “Garmin and Regulator share a passion for designing and engineering products without compromise, and we’re confident that having our award-winning electronics onboard will meet and exceed the needs of the Regulator customer.”
“We are honored to offer our customers what we believe are the finest electronics available today. Every new 2020 model year Regulator will come standard with a Garmin electronics package. From quality to innovation, our customers want it all and we know from our years of experience working together, that Garmin is the perfect fit,” said Joan Maxwell, Regulator Marine president and co-founder.
Regulator will be factory-installing the award-winning GPSMAP® 8600 chartplotter series, offering display sizes ranging from 12 to 17 inches, with models 28-feet and over offering dual 16- or 17-inch displays. Built for mariners who demand high performance, ease-of-use and feature integration, the GPSMAP 8600 series offers premium features like built-in sonar, preloaded BlueChart® g3 cartography with Navionics data, IPS touchscreen displays, full network capabilities and more. Each boat will also come standard with a Garmin VHF marine radio. Other electronics selected by Regulator include the GMR™ xHD2 open array radar series and the award-winning Reactor™ 40 Hydraulic Autopilot with SmartPump, Garmin’s most responsive autopilot system with AHRS technology. Several fishing and convenience upgrade packages are also available to ensure customers can choose additional electronics to fit their needs.
Garmin is the world’s leading marine electronics manufacturer1 and was recently named Manufacturer of the Year for the third consecutive year by the NMEA, an honor given to the most recognized marine electronics company for support of products in the field. Garmin’s portfolio includes some of the industry’s most sophisticated chartplotters and touchscreen multifunction displays, sonar technology, high-definition radar, autopilots, high-resolution mapping, sailing instrumentation, audio, entertainment and other products and services that are known for innovation, reliability, and ease-of-use. Other Garmin marine brands include FUSION® Entertainment, Navionics—a premier supplier of navigation charts, and EmpirBus™. To learn more, visit www.garmin.com/marine.
About Garmin International Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin, GPSMAP, BlueChart and FUSION are registered trademarks and GMR and Reactor are trademarks of Garmin Ltd. or its subsidiaries.
All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.
Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 29, 2018, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such Form 10-K is available at:
MOSCOW (Reuters) – Russian airline Ural Airlines plans to receive the first of 14 previously ordered Boeing-737 MAX aircraft for leasing in December, Interfax news agency reported, citing its chief executive Sergei Skuratov.
Two Boeing MAX aircraft crashed in Ethiopia in March and Indonesia last October, triggering the global grounding of the aircraft. Regulators must approve the fix and new pilot training before the jets can fly again.
“These are good aircrafts. Mistakes have been made, but they are going to be fixed,” Skuratov was quoted as saying by Interfax.
Ural Airlines signed a deal for the leasing of 14 Boeing-737 MAX 8 in the spring of 2018. The delivery was expected between October 2019 and May 2022, Interfax said.
When asked whether the company considered cancelling the deal, Skuratov told the agency that “Boeing has certain advantages: seven hours 45 minutes (of flight) without refueling fully loaded.”
Ural Airlines plans to receive its first Airbus A320neo in August with an additional four jets expected to arrive by the end of 2019, he added.
(Reporting by Polina Devitt,; Editing by William Maclean)
CHICAGO, July 1 (Reuters) – Southwest Airlines expects it will have to remove the grounded Boeing Co 737 MAX jets from its flying schedule beyond the current Oct. 1 re-entry date following the discovery of a fresh safety issue, Chief Executive Gary Kelly told employees on Monday.
Last week, Boeing said that it would take until at least September to solve 737 MAX software issues – later than airlines had been expecting – after U.S. aviation regulators uncovered a new problem during simulator sessions.
“I’m sure this will cause us to have to take the MAX out of the schedule beyond Oct. 1,” Kelly said in an internal update, adding that the company would also see “what other modifications we might need to make our plans for this year because it’s obviously extending well beyond what I had hoped.”
Kelly did not elaborate on the possible modifications. So far, the Texas-based airline has tried to substitute its MAX routes with spare aircraft but has still been forced to cancel about 115 daily flights.
American Airlines Group and United Airlines Holdings , the other two U.S. carriers that operate the 737 MAX, have removed the jetliner from their flying schedules until early September.
The three airlines are expected to provide more details on the financial toll of a prolonged MAX grounding during second quarter results later in July.
Boeing’s fast-selling narrowbody was grounded worldwide in March following two deadly crashes within five months.
(Reporting by Tracy Rucinski, Editing by Rosalba O’Brien)
