MSC’s First Cargo Plane Delivered

The first aircraft in MSC’s new air cargo business has been delivered.

Atlas Air, a subsidiary of Atlas Air Worldwide Holdings (NASDAQ: AAWW), announced the delivery of the Boeing 777-200 freighter. It is the first of four aircraft Atlas Air will operate on behalf of MSC Mediterranean Shipping Company, the world’s largest container shipping line.

“We are looking forward to this partnership with MSC, the world’s largest shipping company, as they enter into air cargo,” said John Dietrich, President and Chief Executive Officer, of Atlas Air Worldwide. “We are pleased that all four of our newly acquired 777-200Fs are placed on a long-term basis with MSC, providing them with the dedicated capacity to support their growth and expansion.”

Atlas Air and MSC entered into a long-term aircraft, crew, maintenance and insurance agreement in September.

MSC enters the air cargo industry with the longest-range twin-engine freighter in the world, capable of flying 4,880 nautical miles.

“We are delighted to see the first of our MSC-branded aircraft take to the skies and we are looking forward to starting serving the market with our new Air Cargo solution,” said Jannie Davel, Senior Vice President of Air Cargo at MSC. “We believe that MSC Air Cargo is developing from a solid foundation thanks to the reliable ongoing support of our operating partner Atlas.”

MSC joins French rival CMA CGM and Danish conglomerate A.P. Moller-Maersk, MSC’s partner in the 2M alliance, in establishing an in-house air-freight fleet.

MSC previously lost a bid to acquire a controlling stake in ITA Airways, Italy’s flagship air carrier.

BA’s 747 retirements ‘should bring forward aircraft scrappage scheme’

BA’s 747 retirements ‘should bring forward aircraft scrappage scheme’

The government must use British Airways’ retirement of its 747 fleets to bring forward aircraft scrappage scheme, says union Unite.

BA announced this morning that it is to retire its Boeing 31-strong 747 fleets as a result of the coronavirus pandemic. The move was brought forward from 2024.

Unite national officer Rhys McCarthy noted the nostalgia of the aircraft but called on the aviation industry to use the landmark to move towards cleaner aircraft.

“While the 747 jet is held in high regard, it is time for the ‘queen of the skies’ to relinquish her throne,” he said. “The entire aviation industry’s stock of older more polluting planes needs to be replaced with the next generation of cleaner and quieter aircraft built and maintained in the UK.

“Other European countries, including France, Germany, Spain and the  have already committed to scrappage measures that will see their aviation industries invest in greener aircraft and help re-kickstart aerospace manufacturing so badly hit by the Covid-19 pandemic.

“It is now time for the UK government to do the same and put together a sector-based strategy for the long-term future of our world-leading aerospace industry, and the thousands of highly skilled jobs it supports.

“Investment in research and development is vital if zero and ultra-low emission planes are to be built. However, this must be accompanied with an immediate industry-wide scrappage scheme so that the newest planes, which emit 25 per cent less Co2, are 25 per cent more fuel-efficient and 50 per cent quieter, can replace more polluting aircraft as quickly as possible.”

This week Boris Johnson said he would ‘examine’ the idea of an aircraft scrappage scheme. Transport secretary Grant Shapps recently announced a Jet Zero Council to work towards carbon-neutral transatlantic flights.

McCarthy said: “British Airways’ retirement of the 747 should be the impetus he needs to put such a [scrappage] scheme into action.”

Alex Cruz, British Airways’ chairman and chief executive, said: “This is not how we wanted or expected to have to say goodbye to our incredible fleet of 747 aircraft. It is a heartbreaking decision to have to make. So many people, including many thousands of our colleagues past and present, have spent countless hours on and with these wonderful planes – they have been at the centre of so many memories, including my very first long-haul flight. They will always hold a special place in our hearts at British Airways.

“We have committed to making our fleet more environmentally friendly as we look to reduce the size of our business to reflect the impact of the Covid-19 pandemic on aviation.  As painful as it is, this is the most logical thing for us to propose. The retirement of the jumbo jet will be felt by many people across Britain, as well as by all of us at British Airways.  It is sadly another difficult but necessary step as we prepare for a very different future.”

Tui strikes undisclosed compensation deal for Boeing 737 Max grounding

Tui strikes undisclosed compensation deal for Boeing 737 Max grounding

Tuis Boeing 737 Max 80.

An undisclosed compensation deal has been struck between Tui and Boeing to offset the cost of the grounding of the 737 Max.

A “comprehensive package of measures” has been agreed between Europe’s largest travel group and the US manufacturer.

More: Boeing 737 Max grounding forces Tui to find alternative aircraft for 2020

Compensation will be paid over the next two years while new deliveries of the aircraft are being postponed.

The deal strengthens the liquidity of the Tui Group as the travel industry suffers the impact of Covid-19.

A worldwide flight ban was imposed on the 737 Max in March 2019 following two fatal crashes, which also had an impact on the operations and fleet renewal plans of Tui’s airlines.

Tui had 15 737 Max aircraft at the time, with eight more scheduled for delivery in 2019.

With its five airlines in Germany, the UK, Belgium, the Netherlands and Sweden Tui is one of Boeing’s largest European customers for the 737 family.

Tui said: “While the details of the agreement are confidential, it provides compensation which covers a significant portion of the financial impact, as well as credits for future aircraft orders.

“The compensation will be realised over the next two years.

“In addition, both parties have agreed to a revised delivery schedule for the 61 737 Max aircraft on order, meaning that Tui will get fewer 737 Max deliveries from Boeing than previously planned in the next several years.

“The associated payment schedules have been adapted accordingly. As a result of this less than half of the originally planned 737 Max aircraft will be delivered to Tui in the next two years.

“On average, compared with the original scheduling, the 737 Max deliveries will be delayed by approximately two years.

“This will significantly reduce Tui’s capital and financing requirements for aircraft in the coming years and supports Tui’s plan to reduce the size of the fleet of its five European airlines in the wake of the corona crisis.

“It was agreed not to disclose the financial details of the agreement.”

Chief executive Fritz Joussen said: “We have reached a fair agreement that strengthens our long-standing relationship with Boeing.

“The agreement provides Tui with compensation for a large part of costs that were incurred due to the grounding of the 737 Max.

“The new delivery schedule gives us considerable flexibility because we will have fewer new aircraft delivered in the next years.

“This enables Tui to rapidly adapt its fleet growth to the currently challenging market environment. And it supports our plan to downsize the aircraft fleet and reduce the capital requirements for aircraft investments in the group.”

Boeing deal for Embraer collapses

Boeing deal for Embraer collapses

The proposed $4.2 billion sales of Brazilian aircraft manufacturer Embraer to Boeing has collapsed, according to reports.

Boeing was reported to have ended talks due to the impact of the coronavirus pandemic and the grounding of its 737 Max fleet, but Embraer has threatened to sue.

The Brazilian firm accused Boeing of “manufactured false claims” and said that it has “wrongfully terminated” the deal.

“We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the (deal), because of its unwillingness to complete the transaction in light of its own financial condition and 737 Max and other business and reputational problems.”

Boeing, which is expected to be granted a bailout by the US government, said it “exercised its rights to terminate after Embraer did not satisfy the necessary conditions”.

Boeing warns of ice risks for 787 and 747-8 jets

By Kate Rice

Boeing has alerted airlines that 787 and 747-8 jets with General Electric engines should avoid thunderstorms that may contain ice crystals.

Aircraft should fly 50 nautical miles around such storms, Boeing advised.

Boeing issued the advisory after finding that ice crystal formation in some instances reduced the engine's thrust.

United, Japan Airlines and Lufthansa are among the airlines that fly the planes covered in the advisory.

Japan Airlines confirms $9.5bn Airbus order

By Phil Davies 

Japan Airlines has confirmed its first order for Airbus aircraft with a deal for 31 wide-body jets worth $9.5 billion.

The agreement also includes options for a further 25 aircraft.

The deal covers the purchase of 18 A350-900s and 13 A350-1000s, with the first aircraft due to enter service from 2019. The aircraft will gradually replace its ageing fleet over a six-year period.

It is the first order the European manufacturer has had from Japan for A350 EWB (extra wide-body) aircraft.

The A350-900 seats more than 300 passengers in a typical three-class configuration on routes as long as 8,100 nautical miles. The A350-1000 is the largest member of the A350 XWB Family, seating 350 passengers on flights of up to 8,400 nautical miles.

Jal president Yoshiharu Ueki said: "We will utilize the A350 XWB to maximum, which offers high level of operational efficiency and product competitiveness, while positively catering to new business opportunities after slots at airports in Tokyo are increased.

"In addition to improving profitability with advanced aircraft, we always aim to deliver unparalleled services to customers with the latest cabin and steady expansion of our route network."

Airbus president and chief executive Fabrice Brégier said: "We sincerely welcome Japan Airlines as a new Airbus customer and feel honoured by this first-ever order from Japan for our all-new A350 XWB.

"It fills us with pride to see a leading Japanese airline start a new chapter with us. This highlights a very bright and flourishing future for both of us, Jal and Airbus."

The first A350-900 is due into commercial service in the second half of 2014. Airbus now has more than 750 firm orders for the A350 XWB from 38 customers worldwide.

Boeing to investigate wiring defect in Dreamliner

Boeing has said that it will investigate a wiring defect that was found in a fire extinguisher system on three of its 787 Dreamliner jets.

The fault was found on jets operated by Japan's All Nippon Airways (ANA).

The problem - the latest in a series of setbacks for Boeing's 787 - was first discovered during pre-flight maintenance of a jet at Tokyo airport, an ANA spokeswoman said.

Rival Japan Airlines turned back a 787 travelling from Tokyo to Helsinki to check the wiring after ANA reported the fault on Wednesday.

It is the latest issue to hit the 787 jet after battery problems grounded the entire fleet earlier this year.

Boeing said it was aware of the latest issue and was looking into the matter.

"The safety of those flying on Boeing aeroplanes is our top priority. We will thoroughly examine this issue and take the appropriate steps," the firm said in a statement.

In July, a fire broke out on a 787 Dreamliner jet operated by Ethiopian Airlines while it was parked at Heathrow airport.

The fire was traced to the upper rear part of the plane where a transmitter used to locate aircraft after a crash is located.

US carrier United Airlines also found a pinched wire during an inspection of one of its six 787s.

Boeing has since asked airlines to carry out inspections of the transmitters.

It has also asked operators of other aircraft models - the 717, Next-Generation 737, 747-400, 767 and 777 - to inspect aircraft.