The Qantas Group’s (OTC: QABSY) first Airbus A220 aircraft has started construction, marking a key milestone for the Group as its fleet renewal program ramps up.
The aircraft’s major airframe components, including the centre and rear fuselage, are coming together at Airbus’ production facility in Mirabel, Canada, with the first of 29 aircraft expected to arrive in Australia before the end of the year. As the first A220 to be operated in Australia, the aircraft will undergo regulatory approvals, airport readiness and training activities before it joins the QantasLink fleet in early 2024. QantasLink has also commenced training its pilots to operate the new aircraft.
The next generation A220s will gradually replace QantasLink’s Boeing 717 fleet which operate routes across Australia.
The first QantasLink A220 will operate flights between Melbourne and Canberra, with subsequent aircraft to be deployed to other parts of the regional and domestic network. With double the range of the 717, the A220 is also expected to open up new domestic and short-haul international routes as more aircraft enter the fleet.
With production now in full swing, the Qantas Group is calling on Australians to help name its fleet of new A220s, based around the theme ‘native wildlife’.
From today, Australians can nominate up to six names via a dedicated page on qantas.com. A shortlist will then be released so the public can vote for their favourites before the final names are revealed.
Qantas ran a similar competition to name its Boeing 787 Dreamliner fleet with iconic Australian names in 2017, with more than 10,000 submissions received.
QantasLink CEO John Gissing said the production milestone marked an important step in the renewal of the airline’s fleet.
NEW YORK, N.Y. (BUSINESS WIRE) – JetBlue (NASDAQ: JBLU) today announced it has reached a new tentative agreement with the Transport Workers Union (TWU) for JetBlue’s inflight crew members.
“We’re pleased to share that the JetBlue and TWU negotiating committees have reached a new tentative agreement,” said Ed Baklor, head of customer care and programs, JetBlue. “Our inflight crewmembers have been on the frontline supporting and protecting JetBlue’s operation and our customers through the COVID-19 pandemic, and I am proud of the TWU and JetBlue teams for recognizing our environment and coming to the table with solutions. We look forward to bringing this contract to a vote with our inflight crewmembers.”
JetBlue (NASDAQ: JBLU) today announced it has reached a tentative agreement with the Transport Workers Union (TWU), regarding the process toward a contract for JetBlue’s inflight crewmembers.
The agreement is subject to a ratification process which includes final documentation, review, and consideration by JetBlue’s TWU leadership team before being distributed to inflight crewmembers for a final vote.
Ed Baklor, vice president inflight, JetBlue, said: “We are pleased to come to this tentative agreement and look forward to bringing the contract to a vote with our inflight crewmembers. Thank you to both negotiating committees for their efforts over the past two years to reach this agreement.”
Ian Deason, head of customer experience, said: “I want to thank our amazing inflight crewmembers for their commitment to safety and for continuing to always deliver the best experience in the skies during this especially challenging time for our industry.”
(Reuters) – Electric carmaker Tesla Inc is negotiating possible incentives with a Texas county that could bring a new auto assembly plant to the area near Austin, the state capital, the Austin American-Statesman reported on Monday.
Travis County Commissioners Court is scheduled to discuss terms of the deal on Tuesday, the paper reported, citing people with knowledge of the situation. A vote is expected in the coming weeks.
The paper said it was unclear whether negotiations with Travis County show that Tesla has picked the Austin region as the site for the plant, which would build the company’s electric pickup truck and Model Y SUV and employ thousands of people, or if the company is also negotiating with officials in Tulsa, Oklahoma.
Tesla officials could not immediately be reached to comment. The company’s chief executive, Elon Musk, has tweeted previously about the possibility of bringing a plant to Texas. Oklahoma also has been mentioned as a possible site.
Travis County officials declined to comment, and a spokesman for the Texas governor’s office did not immediately comment.
Last month, Texas Governor Greg Abbott said he had spoken with Musk about a potential plant.
Abbott’s comments came three days after Musk had threatened to move Tesla’s headquarters and future operations to Texas or Nevada after officials in California’s Alameda County, where Tesla’s only U.S. vehicle assembly plant is located, said the plant could not yet reopen because of coronavirus lockdown measures. The plant has since reopened.
Officials with the United Auto Workers union, which represents hourly workers at General Motors Co’s assembly plant in Arlington, Texas, said they believe a Tuesday county meeting will include talks about the possible deal. The union, which has unsuccessfully tried organizing Tesla’s Fremont, California, plant, called on Texas officials to obtain assurances from Tesla about any potential jobs.
(Reporting by Ben Klayman in Detroit and Brad Brooks in Austin, Texas; Editing by Leslie Adler and Jonathan Oatis)
OSLO (Reuters) – Norwegian Air <NAS.OL> shareholders backed its financial survival plan on Monday, with more than 95% of votes cast supporting the conversion of nearly $1 billion of debt into equity and raising more cash from its owners.
Approval of the scheme is a vital part of the struggling airline’s plan to tap government credit guarantees as it seeks to overcome the coronavirus crisis, which has compounded its already deep financial problems.
Airlines around the world have been hit hard by the impact on travel of the pandemic, with many forced to turn to governments for state aid to avoid bankruptcy.
The airline, which at the end of last year had amassed debts of around $8 billion, said ahead of the meeting that it had won “strong support” from aircraft lessors for its plan.
With 95% of its fleet grounded due to the coronavirus pandemic, Norwegian Air has said it could run out of cash by mid-May unless shareholders supported the plan.
On Sunday it said bondholders had signed up to the plan, which was narrowly rejected in a vote on Thursday.
Norwegian Air said lessors are now willing to convert at least $730 million of debt into equity, up from $550 million earlier, and talks are ongoing for possible further conversion.
“With the significant contributions from lessors and bondholders, the company expects to convert more than 10 billion crowns ($958 million) in debt to equity,” it said.
Based on the results from the shareholders’ meeting, the company will now proceed with the conversion of bonds and lease debt to shares, as well as the public offering of up to 400 million ($38.4 million) from the sale of new stock, it said.
The debt conversion and share sale will allow Norwegian Air to tap government guarantees of up to 2.7 billion crowns, which hinge on a reduction in leverage, on top of 300 million crowns it has already received.
The plan will hand majority ownership to the airline’s creditors and could leave current shareholders with just 5.2%.
The loan could keep Norwegian Air going until the end of 2020, although further cash may be needed as it eyes a gradual ramp-up next year and normalisation in 2022, albeit with a reduced fleet.
Norwegian Air is only paying invoices vital to maintaining minimum operations, such as salaries for staff still employed and critical IT infrastructure. It has put payments for ground handling, debt and leases on hold.
The Oslo Bourse said it had halted trade in Norwegian Air’s shares until the outcome of the vote is presented.
(Reporting by Terje Solsvik; Editing by Christian Schmollinger, Jason Neely and Alexander Smith)
FILE PHOTO: A Norwegian Air plane is refuelled at Oslo Gardermoen airport
In his letter, Haji-Ioannou has also called for removal of easyJet’s Chief Finaicial Officer Andrew Findlay, after earlier calling for a board meeting on a vote to remove Andreas Bierwirth as a director, which was rejected by easyJet.
“If this 4.5 billion pound liability to Airbus is preserved – and not cancelled – by the easyJet board then, I regret to report, easyJet will run out of money around August 2020, perhaps even earlier,” the founder said in his letter.
“I will certainly not be throwing good money after bad. For the avoidance of doubt, I will not inject any fresh equity in easyJet whilst the Airbus liability is in place.”
He also stated that he will continue to call for the removal of more directors every time the company delays the vote.
He also wants easyJet to reduce its fleet size to 250 aircraft from 350, adding that the airline will not need any more additional new planes for many years to come.
(Reporting by Juby Babu in Bengaluru; editing by Diane Craft)
SEOUL, March 26 (Reuters) – South Korea’s National Pension Service (NPS) will vote for Hanjin Group chairman Walter Cho to keep his board seat in Korean Air’s parent firm Hanjin Kal at a shareholders’ meeting on Friday, the fund said.
In a statement on Thursday, NPS said it would also approve a board seat for telecoms industry veteran Kim Shin-bae, who was nominated by Cho’s sister and an activist fund that opposed Walter Cho.
Hanjin Kal’s annual general meeting is expected to be the culmination of an intense proxy fight to decide the group’s leader.
NPS, the world’s third-largest pension fund, had a stake of 2.9% stake in Hanjin Kal by the end of 2019.
(Reporting by Joyce Lee; Editing by Clarence Fernandez)
PARIS (Reuters) – Airbus <EADSY> said in a stock market filing on Monday that customers could seek to cancel or postpone delivery of airliners and helicopters as the coronavirus crisis continues to escalate.
It issued the warning in an annual reference document ahead of its upcoming Amsterdam shareholder meeting, for which it urged participants to vote by proxy rather than attend in person due to widespread measures to slow the spread of the disease.
Airbus Chief Executive Guillaume Faury said earlier that several airlines had asked to defer deliveries, but that most were continuing to pay their deposits.
“Weaker market and economic conditions in China and their knock-on effects in other markets could result in requests by customers to postpone delivery or cancel existing orders for aircraft (including helicopters),” the filing said, though Faury said earlier there were some signs of recovery in China.
Airbus also detailed steps to improve compliance practices after paying a 3.6-billion-euro fine last month to settle a four-year multinational bribery probe.
But it warned that possible further investigations in other jurisdictions could trigger claims against it by shareholders, impact its ability to raise finance or limit its eligibility for public contracts, as well as harm future commercial sales.
Malaysian authorities last week cleared AirAsia Group <5099.KL> after Britain’s Serious Fraud Office faulted a sponsorship deal between former Airbus parent EADS and a motor racing team owned by the airline’s co-founders.
But the SFO probe, supported by Airbus’s own lawyers, caused a severe rift between AirAsia and its sole supplier, adding to doubts over whether long-haul unit AirAsiaX will take delivery of A330neo jets on order, three people close to the matter said.
AirAsia officials could not be reached for comment. Airbus declined comment.
Loss-making AirAsiaX has said only that it wants to defer delivery of A330neo jets due to the coronavirus crisis.
Deliveries of the wide-body aircraft have also been hit by the impact of U.S. tariffs on Airbus aircraft under a long-running trade dispute, as well as concerns about overcapacity.
Airbus trimmed A330 output in January from about four a month in 2019, Reuters reported earlier this month.
In Monday’s filing, Airbus said it would maintain production of the A330neo at 3.5 aircraft a month.
(Reporting by Tim Hepher; Editing by Mark Potter, William Maclean)
Alstom has obtained an order by Deutsche Bahn AG (DB) to retrofit 19 additional ICE1 high-speed trains with the newest ETCS signalling standard. The retrofitting work, worth more than €10 million, is scheduled to be completed by September 2021.
The project is a follow-up contract for the ICE 1, of which Alstom had already retrofitted 39 trains for the commissioning of the VDE 8 high-speed line connecting Berlin and Munich. Since the opening of the high-speed line passenger numbers have more than doubled.
‘We are delighted that Deutsche Bahn has again passed a vote of confidence in Alstom for this complex retrofit. This is a further step towards making Germany fit for digital rail guarantees Deutsche Bahn a uniform and flexibly deployable ICE fleet’, says Dr. Joerg Nikutta, Alstom Managing Director Germany & Austria.
The contract includes development, design and manufacture of the digital signalling system ETCS Level 2 Baseline 3 as well as its installation, connection to existing train control systems and commissioning. The new system will ensure a continuous communication between the vehicle and the track.
The retrofitting work will be implemented in cooperation with several Alstom sites: Berlin, Braunschweig (installation design and project management), Charleroi, Belgium (product development, validation and assembly for ETCS) and Lyon/Villeurbanne, France (manufacture of components). The conversion and recommissioning of the vehicles will be carried out at the ICE-plant in Hamburg-Eidelstedt.
With 15 years of experience putting into service ERTMS Level 2 digital signalling solutions, Alstom is a global pioneer in its development and implementation. With projects in 30 countries, Alstom has installed nearly 40% of the Trackside ERTMS Level 2 equipment in service in Europe and equipped over 8,000 trains of 200 different types with its Atlas On-board ERTMS solution. Atlas is a scalable solution that can be adapted to all types of traffic and operational needs: passengers and freight, high-speed or suburban.
MONTREAL/WINNIPEG (Reuters) – Canada’s longest railroad strike in a decade ended on Tuesday as Canadian National Railway Co reached a tentative agreement with workers, but shippers warned it could take weeks before service bounces back to normal.
Industry groups celebrated the end of the eight-day strike at the country’s biggest railroad, which had cost them sales and raised their expenses. News of the deal, which must still be ratified by union members, sent CN shares up by as much as 2%.
Thousands of unionized workers began heading back to their jobs, CN said, with operations expected to be in full swing on Wednesday. Union members should vote on the deal within eight weeks.
CN has rescinded 70 temporary layoff notices at an auto shipment terminal in Nova Scotia following the deal, another union said.
Canada relies on CN and Canadian Pacific Railway to move crops, oil, potash, coal and manufactured goods to ports and the United States.
Details of the agreement were not available but some 3,200 striking conductors and yard workers had been demanding improved working conditions, including rest breaks.
Prime Minister Justin Trudeau acknowledged CN and union officials in a tweet on Tuesday and thanked workers, industry and all Canadians for their patience.
Trudeau’s minority government had faced pressure from industry and farmers to end the strike and force workers back to their jobs.
Transport Minister Marc Garneau told reporters on Tuesday that if Ottawa had intervened with legislation, “we would not have had a solution today.”
Teamsters Canada President Francois Laporte noted the federal government “remained calm and focused.” CEO of Montreal-based CN J.J. Ruest thanked customers for their patience.
About half of Canada’s exports move by rail, according to industry data, and the strike would likely cost the Canadian economy less than C$1 billion ($750 million) and cut fourth-quarter growth by about 0.1 percentage point, Brian DePratto, a senior economist at TD, said.
PROPANE SHORTAGE TO PERSIST
The Canadian Propane Association warned severe shortages of the fuel in several eastern Canadian provinces could last weeks. “We need to get the inventory back up,” said association President Nathalie St-Pierre, noting the “crisis” was not over.
Garneau said CN will work quickly to clear the backlog, but added the process is complex and would take time.
Bob Masterson, chief executive of the Chemistry Industry Association of Canada, said some plants had slowed production during the strike.
Based on past rail disruptions, he said CN is likely to move critical commodities first, like propane for farms and homes and chlorine for drinking water, leaving other shippers to face delays.
PAIN FOR MINERS, FARMERS
Brendan Marshall, a vice president with the Mining Association of Canada, said miners faced hefty costs due to lost sales and plant disruptions. He said restoring normal operations could take a week for every day of disrupted service.
“Now we can hope that things can get back to normal in quick fashion. It’s cost a lot of money to farmers already,” said Markus Haerle, chairman of the Grain Farmers of Ontario. Wet conditions have stalled the harvest across much of Canada, including much of Haerle’s corn crop near St. Isidore, Ontario. Those crops must be dried before they can be sold, but the rail strike held up deliveries of propane, forcing farmers to use costlier alternatives.
(Reporting by Allison Lampert in Montreal and Rod Nickel in Winnipeg. Additional reporting by Kelsey Johnson in Ottawa, writing by Steve Scherer, editing by Louise Heavens, Steve Orlofsky and David Gregorio)
FILE PHOTO: Railcars stand idle at the CN railyards in Edmonton
