In a virtual shareholders’ meeting on Monday this week, Boeing CEO David Calhoun warned that the world’s second-largest planemaker will need to raise further cash over the next six months and will be unlikely to pay any shareholder dividends for many years to come. “That process could take three to five years… It’s going to
European aerospace giant Airbus has decided to furlough 3,200 of its staff based at its plant in Broughton, Wales, which is responsible for the manufacture of wings. These employees will be able to take advantage of the U.K.s job retention scheme whereby the government guarantees 80% of an employee’s salary while they are unable to
Boeing let the midnight deadline on April 24 pass before announcing that it was pulling out of the deal to acquire the commercial aircraft arm of Brazil’s Embraer first agreed in 2018. Boeing has cited that Embraer failed to meet a number of conditions required for the transaction to be closed. Embraer has retaliated by
In November 2019, International Airlines Group (IAG) agreed to buy Spanish-owned Air Europa for one billion euros (US$1.13 billion), subject to European regulatory approval. In March this year IAG, which also owns Spanish carriers Iberia and low-cost carrier Vueling, agreed to offload a number of routes to fellow Spanish carrier Volotea which would reinforce competition
On October of last year, the probe by European Union antitrust regulators into Boeing’s acquisition of the commercial aircraft arm of Brazilian Plane manufacturer Embraer came to a halt as it waited for the provision of additional documentation that had been requested. This so-called “stop the clock” intervention ended on April 7 this year after
Virgin Australia Holdings (Virgin Australia) has called in Vaughan Strawbridge of Deloitte to act as administrator for Australia’s second-largest airline which has accrued debts of AU$5 billion (US$3.15 billion). Having failed to operate profitably for the last seven years and the impact of the COVID-19 pandemic, failing to obtain a bailout loan of AU$1.4 billion
Over recent weeks, billionaire Sir Richard Branson has been on the receiving end of negative press in relation to his request to the British government for a £500 million (US$625 million) bailout to stop Virgin Atlantic going bust. Many feel he should use part of his estimated £4.7 billion (US$5.88 billion) personal fortune instead. Branson
GECAS, the aircraft leasing arm of General Electric Co, has canceled an order for 69 of the Boeing 737 MAX jets that has remained grounded since March 2019, citing a desire to evaluate its order book during the COVID-19 pandemic. Currently, GECAS maintains 29 737 MAX jets and still has a further 82 of the
With the COVID-19 pandemic dramatically affecting demand for new aircraft, Airbus has decided to delay ramping up the increase in production of is Canada-based A220 narrow-body jet until next year but has not opted to reduce production either. By the middle of 2021, the European planemaker anticipates it will increase current output of four jets
Spirit AeroSystems (Spirit) the American airframe maker has announced that for the first quarter of 2020, it is likely to post a loss of US$160 million as opposed to a profit of US$163 million for the same period last year, generating approximately U$1.1 billion in first quarter revenue, down about 46% from U$2.0 billion for
