Monthly Archives: April 2019

Transat AT Inc announces preliminary discussions concerning a potential sale of the corporation

Transat AT, Inc., the parent of Air Transit, has made this announcement:

The Corporation announces being in preliminary discussions with more than one party concerning a potential transaction involving the acquisition of the Corporation.

These discussions result from expressions of interest received by the Corporation. The Corporation has formed a special committee of independent directors to evaluate the proposals with the assistance of financial and legal advisors, consider, and if deemed advisable, undertake a process for the formal review of strategic alternatives, consider any alternative proposal, and make recommendations to the Board of Directors in the best interests of the Corporation and all its stakeholders.

This situation has no impact on the clients or employees of Transat, nor on its operations, which are continuing as usual.

The discussions are at a preliminary stage. No decision has been made as to any potential transaction. There can be no assurance that any transaction will take place. The Corporation does not intend to provide further updates or comments with respect to the foregoing except as required by law.

Virgin Australia pushes back its first Boeing 737 MAX delivery to July 2021

Boeing

Virgin Australia has announced it will delay the delivery of its first Boeing 737 MAX aircraft.

The airline has 48 copies on order (23 MAX 8s and 25 MAX 10s).

The first delivery has been delayed from November 2019 to July 2021. The first delivery will be a MAX 10.

SpiceJet Boeing 737-800 skids off the runway while landing at Shirdi Airport

SpiceJet Boeing 737-800 (VT-SGJ) overshot the runway while landing at Shirdi Airport on Monday. Flight SG946 was operating from Delhi to Shirdi, India with 164 passengers and crew members on board. There were no reported injuries.

Read more from India Today: CLICK HERE

SAS announces it expects additional traffic disruptions due to pilot strike, cancels more flights

Scandinavian Airlines-SAS Airbus A320-251N WL SE-ROE (msn 7791) AYT (Ton Jochems). Image: 943747.

Scandinavian Airlines-SAS has made this announcement:

We deeply regret that our customers are being affected by the ongoing pilot strike that has led to delays and cancellations. As a result of the ongoing conflict, SAS will cancel additional departures on Wednesday.

In total, about 47 000 travelers will be affected when SAS cancels 504 departures across Scandinavia on Wednesday 1 May. See the table below for information about all canceled departures. In the meantime, we’re doing everything we can to help our travelers affected by the strike. SAS is striving to reach a solution as quickly as possible to prevent additional inconveniences for travelers. Negotiations between SAS and the pilots’ unions have not yet resumed.

“I am deeply concerned that the pilot strike hasn’t been resolved and that it is continuing to affect our customers. The consequences are serious for all travelers, for society and also for all our employees who are working around the clock to help everyone. The demands made by the pilots’ unions entail significant cost increases for SAS that would threaten the company’s long-term competitiveness and consequently, the jobs of all SAS’ employees. SAS has clearly stated that we are prepared to continue negotiating and find a solution. The unions have not yet indicated that they are ready to release their ultimate demands and return to the negotiating table, which means that we remain in a deadlock”, says Rickard Gustafson, President & CEO of SAS.

Flights operated by SAS’ partners will not be affected by the strike. Travelers concerned that the strike could impact their travel plans may rebook or cancel their tickets free of charge until 5 May. More detailed information about rebooking and cancellation rules can be found on SAS’ website at https://www.flysas.com/en/traffic-information/disruptions/

Date Canceled departures No. of passengers
Friday April 26 673 72 300
Saturday April 27 329 33 912
Sunday April 28 587 63 360
Monday April 29 667 60 813
Tuesday April 30 546 48 949
Wednesday May 1 504 47 583

Top Copyright Photo (all others by the airline): Scandinavian Airlines-SAS Airbus A320-251N WL SE-ROE (msn 7791) AYT (Ton Jochems). Image: 943747.

SAS aircraft slide show:

Qatar Airways to launch services to Rabat, Morocco and expand joint business agreement with Royal Air Maroc

Qatar Airways Boeing 787-8 Dreamliner A7-BCR (msn 38336) ZRH (Rolf Wallner). Image: 942907.

Qatar Airways has announced that it will launch flights to Rabat, Morocco on May 29, 2019.

Services to the Moroccan capital will be served by a Boeing 787 three times a week.

In addition, Qatar Airways has also announced its joint business agreement with Royal Air Maroc to expand the number of services available to meet increased consumer demand for flights to Morocco.

In addition to launching Rabat via Marrakech, Qatar Airways will also now offer daily flights to Casablanca, providing seamless connectivity for passengers who wish to explore the country’s many vibrant cities.

Qatar Airways currently operates five weekly flights from Doha to Marrakech via Casablanca on a Boeing 777, in addition to two direct weekly flights from Doha to Casablanca. The carrier’s joint business agreement partner, Royal Air Maroc, provides five weekly flights from Casablanca to Doha.

Qatar Airways will add a number of other new destinations to its extensive route network in 2019, including Izmir, Turkey; Rabat, Morocco; Malta; Davao, Philippines; Lisbon, Portugal; Mogadishu, Somalia and Langkawi, Malaysia.

Qatar Airways Flight Schedule:

Until May 28, 2019 (Monday, Tuesday, Wednesday, Thursday and Saturday)

Doha (DOH) to Casablanca (CMN) QR1395 departs 09:15 arrives 15:40

Casablanca (CMN) to Marrakech (RAK) QR1395 departs 17:00 arrives 17:50

Marrakech (RAK) to Doha (DOH) QR1395 departs 19:00 arrives 04:45 +1

Until June 16, 2019 (Friday and Sunday)

Doha (DOH) to Casablanca (CMN) QR1397 departs 07:05 arrives 13:30

Casablanca (CMN) to Doha (DOH) QR1398 departs 14:50 arrives 00:15 +1

May 29, 2019 to October 26, 2019 (Monday, Wednesday, and Friday)

Doha (DOH) to Marrakech (RAK) QR1463 departs 09:55 arrives 16:10

Marrakech (RAK) to Rabat (RBA) QR1463 departs 17:30 arrives 18:20

Rabat (RBA) to Doha (DOH) QR1463 departs 19:30 arrives 05:25 +1

From May 29, 2019 to October 26, 2019 (Monday, Tuesday, Wednesday, Thursday and Saturday)

Doha (DOH) to Casablanca (CMN) QR1397 departs 08:05 arrives 14:30

Casablanca (CMN) to Doha (DOH) QR1398 departs 19:35 arrives 05:00 +1

From June 17, 2019 to October 26, 2019 (Friday and Sunday)

Doha (DOH) to Casablanca (CMN) QR1397 departs 08:05 arrives 14:30

Casablanca (CMN) to Doha (DOH) QR1398 departs 19:35 arrives 05:00 +1

Royal Air Maroc Flight Schedule:

Until June 16, 2019 (Tuesday, Wednesday, Thursday, Friday and Sunday)

Doha (DOH) to Casablanca (CMN) AT216 departs 01:30 arrives 07:10

Casablanca (CMN) to Doha (DOH) AT217 departs 13:45 arrives 22:50

From June 17, 2019 to October 26, 2019 (Daily)

Doha (DOH) to Casablanca (CMN) AT216 departs 01:30 arrives 07:10

Casablanca (CMN) to Doha (DOH) AT217 departs 13:45 arrives 22:50

Top Copyright Photo (all other by the airline): Qatar Airways Boeing 787-8 Dreamliner A7-BCR (msn 38336) ZRH (Rolf Wallner). Image: 942907.

Qatar Airways aircraft slide show:

WestJet inaugurates Halifax and Dublin nonstop

WestJet made this announcement:

As the carrier with the most transatlantic flights from Halifax, WestJet on April 29 began its new nonstop service between Halifax Stanfield International Airport (YHZ) and Dublin Airport (DUB).

WestJet has served the city of Halifax since 2003 and has seen 160 per cent growth in flights to and from Halifax Stanfield. This summer the airline will operate non-stop service to 15 cities with an average of 28 departures per day from Halifax.

Photo: Halifax Stansfield Airport.

WestJet has operated to Dublin, Ireland since 2014 and on June 1 will bring one of its first three Dreamliner aircraft to the city with nonstop service from Calgary.

Details of WestJet’s new non-stop service:

Route Frequency Departing Arriving Effective
Halifax-Dublin 6x weekly 10:20 p.m. 7:32 a.m. +1 April 29, 2019
Dublin-Halifax 6x weekly 9:00 a.m. 11:02 a.m. April 30, 2019

 

Airbus reports its first quarter 2019 results

Airbus SE (stock exchange symbol: AIR) reported First Quarter (Q1) 2019 consolidated financial results(1) and maintained its guidance for the full-year.

“The first quarter underlying financials mainly reflect our commercial aircraft ramp-up and delivery phasing,” said Airbus Chief Executive Officer Guillaume Faury. “The commercial aircraft market remains robust and we continue to see good prospects in the helicopters and defence and space businesses. The new management team is in place and focused on delivering on our commitments.”

Gross commercial aircraft orders totalled 62 (Q1 2018: 68 aircraft) and included 38 A350 XWBs. Net commercial aircraft orders of -58 (Q1 2018: 45 aircraft) after 120 cancellations mainly reflect the winding down of the A380 programme and the commercial agreement with Etihad as communicated in the Full-Year 2018 disclosure. The commercial aircraft backlog stood at 7,357 aircraft as of 31 March 2019. Net helicopter orders of 66 units (Q1 2018: 104 units) included 20 Super Puma Family and 16 H145s. Airbus Defence and Space’s order intake by value totalled  € 1.1 billion.

Consolidated revenues increased to € 12.5 billion (Q1 2018: € 10.1 billion), mainly reflecting the higher commercial aircraft deliveries as the production ramp-up continued. At Airbus, a total of 162 commercial aircraft were delivered (Q1 2018: 121 aircraft), comprising 8 A220s, 126 A320 Family, 5 A330s, 22 A350s and 1 A380. Airbus Helicopters delivered 46 units (Q1 2018: 52 units) with increased revenues reflecting the higher volume in services. Revenues at Airbus Defence and Space reflected the overall stable business performance.

Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructurings or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – increased strongly to € 549 million (Q1 2018: € 14 million), driven by Airbus.

Airbus’ EBIT Adjusted improved to € 536 million (Q1 2018: € -41 million), mainly reflecting the A320neo ramp-up and premium as well as further progress on the A350 financial performance.

A total of 96 A320neo Family aircraft were delivered in the quarter. The ramp-up of the Airbus Cabin Flex version of the A321 continued in Q1 but remains challenging. Airbus is working to improve execution in its internal industrial systems and monitoring engine performance. The overall A320 Family programme is on track to reach 60 aircraft per month by mid-2019 and preparing for rate 63 in 2021. On the A330 programme, 5 aircraft were delivered in the first quarter, including 3 NEOs. A330neo deliveries continue to ramp-up and Airbus is working closely with its engine partner and suppliers to deliver in line with customer commitments. The flight test campaign of the A330-800 variant is progressing.

Airbus Helicopters’ EBIT Adjusted totalled € 15 million (Q1 2018: € -3 million), reflecting lower deliveries and higher volume in services.

Airbus Defence and Space’s EBIT Adjusted of € 101 million (Q1 2018: € 112 million) reflected the Division’s overall stable business performance.

One A400M military transport aircraft was delivered in the first quarter, bringing the in-service fleet to 75 aircraft. Development activities continued as agreed in the revised capability roadmap, with certification flights successfully completed for the Cargo Hold Tanks refuelling unit in the first quarter. A400M retrofit activities are progressing in line with the customer agreed plan. The  approval process of the Contract Amendment is progressing.

Consolidated self-financed R&D expenses totalled € 654 million (Q1 2018: € 616 million).

Consolidated EBIT (reported) amounted to € 181 million (Q1 2018: € 199 million), including Adjustments totalling a net € -368 million. These Adjustments mainly comprised:

  • A negative € -190 million as a consequence of the prolonged suspension of defence export licences to Saudi Arabia by the German government;
  • A negative impact of € -83 million relating to the dollar pre-delivery payment mismatch and balance sheet revaluation;
  • A negative € -61 million related to A380 programme cost.

Consolidated reported earnings per share of € 0.05 (Q1 2018: € 0.37) included a negative adjustment for foreign exchange hedges in the financial result corresponding to the prolonged suspension of defence export licences. The financial result was € -43 million (Q1 2018: € 39 million). The financial impacts recorded in the Q1 2019 Financial Statements relating to the prolonged suspension of defence export licences also impacted the effective tax rate. Consolidated net income(2) was € 40 million (Q1 2018: € 283 million).

Consolidated free cash flow before M&A and customer financing of € -4,341 million (Q1 2018: € -3,839 million), mainly reflected the inventory build to support the production ramp-up, improved engine delivery stream and other changes in working capital. Consolidated free cash flow was € -4,448 million (Q1 2018: € -3,656 million).

On 1 January 2019, the Company adopted the IFRS 16 ‘Leases’ accounting standard, whereby most operating leases must now be recorded on the balance sheet. The corresponding commitments are booked as financing liabilities, which being part of the Company’s definition of net cash, means the net cash position is mechanically reduced by around € 1.4 billion. The consolidated net cash position was € 7.5 billion on 31 March 2019 (year-end 2018: € 13.3 billion) with a gross cash position of € 18.5 billion (year-end 2018: € 22.2 billion).

 

Outlook

As the basis for its 2019 guidance, the Company expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions.

The 2019 earnings and Free Cash Flow guidance is before M&A.

  • Airbus targets 880 to 890 commercial aircraft deliveries in 2019.
  • On that basis:
    Airbus expects to deliver an increase in EBIT Adjusted of approximately +15% compared to 2018 and FCF before M&A and Customer Financing of approximately € 4 billion.

 

Air Macau showcases its first Airbus A320neo

Air Macau has presented its first A320neo (B-MCK) at a ceremony held at Macau International Airport. The aircraft is the 21st Airbus aircraft in Air Macau’s fleet that already includes four A319ceo, six A320ceo and 10 A321ceo aircraft.

In total, Air Macau will receive eight additional A320neo and A321neo aircraft under leasing agreement in order to meet its fleet renewal and expansion program.

The new aircraft features 158 seats (eight business and 150 economy seats). Selected for its outstanding operational efficiency, comfort and range, the A320neo will be deployed by the career on its regional services.

Featuring the widest single-aisle cabin in the sky, the A320neo Family incorporates the very latest technologies including new generation engines and Sharklets, which together deliver at least 15 percent fuel savings at delivery and 20 percent by 2020. At the end of March 2019, the A320neo Family had received more than 6,500 firm orders from over 100 customers worldwide.

Photo: Airbus.