AIR.PA - Airbus SE

Paris - Paris Delayed Price. Currency in EUR
58.65
+1.61 (+2.82%)
As of 4:03PM CEST. Market open.
Stock chart is not supported by your current browser
Gain actionable insight from technical analysis on financial instruments, to help optimize your trading strategies
Chart Events
Neutralpattern detected
Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close57.04
Open56.90
Bid0.00 x 0
Ask0.00 x 0
Day's Range54.63 - 59.10
52 Week Range48.12 - 139.40
Volume1,618,542
Avg. Volume2,877,831
Market Cap45.883B
Beta (5Y Monthly)1.69
PE Ratio (TTM)N/A
EPS (TTM)-1.75
Earnings DateApr 29, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateApr 20, 2020
1y Target Est120.82
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
Fair Value
XX.XX
N/A
Research that delivers an independent perspective, consistent methodology and actionable insight
Related Research
    View more
    • Most U.K.-Made Ventilators Won’t Arrive Ahead of Virus Peak
      Bloomberg

      Most U.K.-Made Ventilators Won’t Arrive Ahead of Virus Peak

      (Bloomberg) -- When Britain’s government issued an urgent call to industry for thousands of hospital ventilators, more than 5,000 companies offered to help. Coronavirus infections are expected to peak next week and there’s little to show for their effort.Significant deliveries from the firms are still weeks away, and the embattled National Health Service has resorted to foreign imports and loans from the armed forces and the private sector to double its ventilator count to around 10,000. While the national lockdown appears to be slowing the spread of Covid-19, the NHS may need as many as 8,000 more of the devices, according to Health Secretary Matt Hancock.​The government is under intense pressure to solve Britain’s shortage of the machines that are vital for treating critically ill patients. It already spurned an offer to join a European Union program for procuring ventilators, initially stating it was no longer a member of the bloc and could source them locally, before backtracking and saying it had missed the email inviting participation. EU leaders are struggling to coordinate a response to the virus; last night they were unable to agree on a 500 billion-euro ($543 billion) stimulus package.​It’s not that U.K. Plc can’t do the job: The machines are seen as relatively straightforward to make and much of industry has been sitting on its hands since the economy tanked. The problem is that vacuum cleaner maker Dyson Ltd., engineering contractor Babcock International Group Plc and other newcomers to the business need their designs to be fully tested and approved.It can take months for the U.K. Medicines & Healthcare Products Regulatory Agency to sign off on sensitive medical machinery. The process can be expedited, but still takes valuable time to ensure patients’ safety.“It’s a race against the clock,” said Derek Hill, a professor specializing in medical devices at University College London. The regulator is “literally working all hours making this happen fast.”For now, the supply of ventilators from British manufacturers is tiny. The NHS expects to receive 30 locally-made machines this week, compared to 300 sourced from China over the weekend.Department of Health and Social Care officials say they are confident there will be enough ventilators to meet demand, given the steps being taken to increase the number available, and as long as people continue to stay at home to reduce the spread of the virus.Pistons, TurbochargersIn the short run, the greatest hope lies with consortium Ventilator Challenge UK, which includes Meggitt Plc, Airbus SE, GKN Ltd, McLaren Automotive Ltd and Rolls-Royce Holdings Plc. They plan to churn out 1,500 ventilators a week using designs from Penlon Ltd. and Smiths Group Plc, two medical device makers that can currently only make about 50 to 60 of the machines per week on their own. The group already has an approved ventilator from Smiths. But it’s still closing in on final approval for the other, and its factories and supply chains are in need of re-calibrating, so large deliveries are unlikely before the end of April.​A breathing aid developed by engineers from the Mercedes Formula One team and University College London has been approved for use. It’s being manufactured at a rate of as many as 1,000 a day using machines that would normally produce racing car pistons and turbochargers. It’s not as sophisticated as a ventilator, but it can help reduce the need for those devices.Companies such as Babcock -- which has a government contract to make 10,000 of its Zephyr Plus ventilators -- face a longer wait for approval. They may end up being useful in a potential second or third wave of infection.Prime Minister Boris Johnson, who is in hospital with the disease, set a challenge last month to source 30,000 ventilators.The government now says fewer will be needed because lockdown measures have slowed the virus’s spread. The NHS has 2,000 extra ventilators on standby, with 1,500 more due to arrive by the end of the week, Hancock said on Sunday.(Updates with news on EU fiscal stimulus in third paragraph; adds context)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • EasyJet founder continues battle over $5.5 billion Airbus order
      Reuters

      EasyJet founder continues battle over $5.5 billion Airbus order

      EasyJet founder Stelios Haji-Ioannou continued his battle to force the British airline to cancel an order for 107 Airbus planes, making a new demand on Wednesday for a shareholder vote and threatening to sue its directors. Haji-Ioannou, still easyJet's biggest shareholder, says the new Airbus planes are useless given the impact of the coronavirus on air travel and says their 4.5 billion pound ($5.5 billion) bill threatens easyJet's survival.

    • Pandemic Forces Boeing, Airbus To Shut Down Aircraft Plants
      Benzinga

      Pandemic Forces Boeing, Airbus To Shut Down Aircraft Plants

      Aircraft manufacturers Boeing Co. (NYSE: BA) and Airbus SE (OTCMKTS:EADSY) are suspending production at more assembly plants to protect workers from the novel coronavirus that has infected more than 1.3 million people and claimed nearly 76,000 lives around the world.On Monday, Boeing announced it will temporarily suspend all operations at its 787 plant in North Charleston, South Carolina. The move comes two weeks after the company paused operations at its plants in Washington state, where Gov. Jay Inslee issued a stay-at-home order in mid-March. Boeing's decision in South Carolina coincided with Gov. Henry McMaster's belated order for people to avoid public contact. After holding out against guidance from public health officials to lockdown the populace to prevent community spread, McMaster finally relented, but his order was watered down compared with most other states because it provides exceptions for all types of work, visiting family and recreating outdoors."It is our commitment to focus on the health and safety of our teammates while assessing the spread of the virus across the state, its impact on the reliability of our global supply chain and that ripple effect on the 787 program," said Brad Zaback, vice president and general manager of the 787 program, in a statement. "We are working in alignment with state and local government officials and public health officials to take actions that best protect our people."Employees who can will work remotely and those that can't will receive paid leave for 10 working days of the suspension, double the company policy, Boeing said. After that, workers have the option to use a combination of vacation and sick leave or file for emergency state unemployment benefits.  Boeing said it will use the time to conduct enhanced cleaning of the site.The aerospace giant also indefinitely extended its suspension of operations in Washington, which was initially scheduled to last two weeks.Similarly, European rival Airbus said it is suspending activity at its plant in Mobile, Alabama, where the A220 regional jet and the A320 mid-size aircraft are produced. Production was also halted at assembly plants in Bremen and Stade, Germany.Airbus said the moves were made because government restrictions are limiting available manpower and there are high inventory levels. The Bremen site will be closed through April 27, while Stade will shut down through April 11. The U.S.shutdown is expected to last until April 29, but certain activities such as receipt and control of materials and aircraft maintenance will continue. "All ongoing work in Bremen and Stade in Germany and Mobile, Alabama, will be done in adherence to the required hygiene measures and social distancing," Airbus said.During the past two weeks, Airbus paused production and assembly work in France and Spain for four days to implement stringent health and safety measures. Production and assembly in France has resumed gradually since March 23. Commercial aircraft wing production operations in the U.K. and commercial aircraft production activities in Spain and Canada have been temporarily paused, reflecting stock levels and the latest government restrictions.Meanwhile, Airbus continues to purchase and supply millions of face masks from China using its own aircraft to make deliveries. Most of the masks are being donated to Airbus home countries – France, Germany, Spain and the U.K.An Airbus flight test crew landed an A350-1000 test plane in Toulouse, France, on Sunday with four million masks picked up in Tianjin, China, Airbus said. Two previous relief missions were performed with an A330-800 and an A330 multi-role tanker transport. Airbus has also deployed an A400 military transport and its Beluga fleet – which normally ferries large aircraft components and oversized cargo to its manufacturing plants – to transport shipments of masks between its Europe sites.During the pandemic, Airbus continues to support aircraft customers that are operating aircraft. Company employees are also helping to design and manufacture ventilators to help patients suffering from the respiratory illness and 3D-printed visors for protecting hospital workers from infection.See more from Benzinga * Weekly Fuel Report: April 6, 2020 * An Already 'Hard' Trucking Insurance Market Now Faces Upheaval From The Pandemic * Alaska, American Cut More Capacity As Airlines Try To Preserve Cash(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    • Boeing suspending 787 production at South Carolina plant
      Reuters

      Boeing suspending 787 production at South Carolina plant

      Boeing Co said on Monday it would suspend production of its 787 airplane at its facilities in South Carolina amid the coronavirus pandemic. Boeing production will be suspended until further notice after the second shift on Wednesday. On Sunday, the largest U.S. planemaker indefinitely extended the halt of its production operations at its Washington state facilities.

    • Airbus announces additional production pauses
      Reuters

      Airbus announces additional production pauses

      Airbus said on Monday it had decided additional production pauses, in Germany and in the United States, in response to an industry-wide slowdown triggered by the coronavirus crisis. Europe's leading planemaker said in a statement it would pause production and assembly at its German sites in Bremen and Stade and at its A220/A320 manufacturing facility in Mobile, Alabama. The Lower-Saxony based Stade factory makes vertical tails for most Airbus aircraft and other parts for the A350 while the Bremen site adds parts to UK-built wings and makes flaps for most Airbus aircraft.

    • Bloomberg

      EasyJet Draws U.K. Virus Loan in Defiance of Founder

      (Bloomberg) -- EasyJet Plc borrowed 1.1 billion pounds ($1.35 billion) to shore up its finances during the coronavirus pandemic, tapping into a U.K. guarantee program in defiance of founder Stelios Haji-Ioannou’s escalating activist campaign.The U.K. discount carrier accessed 600 million pounds in Bank of England-backed commercial paper and requested to draw down 500 million pounds from an existing facility that’s secured against aircraft, it said in a statement Monday. The move comes a day after Haji-Ioannou said he’s try to oust Chief Financial Officer Andrew Findlay as part of a pressure campaign aimed at canceling 4.5 billion pounds of aircraft orders with Airbus SE.The new loan came through the U.K.’s Covid Corporate Financing Facility open to investment grade companies. With the money, EasyJet said it will have about 2.3 billion pounds to see it through a crisis that’s forced it to ground its fleet and idle staff.The carrier also said it had reached deals with its pilot and cabin-crew unions on furlough plans, and that it’ll consider further liquidity options “given the possibility of a prolonged grounding.”EasyJet has also been defending itself against Haji-Ioannou, the carrier’s largest shareholder with a 34% stake. After the company rejected his request for a shareholder meeting to remove one board member, he pressed his case by saying he’ll try to remove Findlay.Ousting the CFO “is the best way to stop him writing billion-pound cheques plus to Airbus every year,” Haji-Ioannou said in a statement posted on the website of his holding company EasyGroup. He opposes more loans, adding that ending the Airbus contract for more than 100 A320-series jets and holding off from buying more aircraft is the only way to “preserve the value for all shareholders.”EasyJet extended gains, rising 16% in London on Monday. Stocks rose broadly on optimism the global fight against the virus was making progress.With travel curtailed by the coronavirus, the discount airline has grounded its fleet to preserve cash. Fundraising scenarios it’s exploring include a delay in plane orders to conserve cash if needed for a longer-term downturn, people familiar with the matter said last week. It’s also open to issuing more stock, as Haji-Ioannou has suggested it do through a rights offering, though that’s considered a less favorable option, the people said.“We have a longstanding contract with Airbus which allows a great deal of flexibility and are in discussion with them on how we can best use that flexibility in the current climate,” EasyJet said in an emailed response to questions. “This could include order deferrals and option cancellations where appropriate.”EasyJet will release a trading update in the second half of April, and results for the fiscal first half through March will be announced on June 30, it said in the filing.Haji-Ioannou stepped down from the board in 2010 to protest EasyJet’s expansion plans, and has long sought to slow growth in favor of profit and dividends. He’s seized on the coronavirus crisis to press his campaign, as airlines with little revenue have no immediate need for planes.Last week, EasyJet rejected his proposal for a general meeting to remove directer Andreas Bierwirth, citing a technicality. The airline has said that doing so would be a distraction. With the latest move, the 53-year-old entrepreneur said he’d try to rally other shareholders and bondholders to his side.Daniel Roeska, an analyst at Bernstein, said the commercial-paper loan probably comes without restictions, though EasyJet will probably need to refinance it within a year. The new funding should be “enough, in our view, to last the company until the end of the calendar year.”(Updates with comment from EasyJet in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • EasyJet founder steps up battle with management over Airbus order
      Reuters

      EasyJet founder steps up battle with management over Airbus order

      Stelios Haji-Ioannou, easyJet's founder and biggest shareholder, on Monday intensified his battle with the airline's management over a huge aircraft order with Airbus which he says it should cancel. Haji-Ioannou said in a statement that he had told the airline he would not provide it with any new equity until it terminates a 4.5 billion pound deal with Airbus. Stelios, as he is better known, says that the 107 planes on order are "useless", after the coronavirus pandemic brought air travel to an almost standstill.

    • Bloomberg

      Airbus Tells Employees Production Rebound Unlikely in Short Term

      (Bloomberg) -- Airbus SE has told employees that a return to full operations isn’t feasible in the short term because of parts shortages and the inability of struggling airlines to take delivery of new aircraft, according to a person familiar with the matter.The letter, sent out Friday by Thierry Baril, the planemaker’s chief of human resources, cited supply chains that aren’t fully operational and a drastic drop in aircraft acceptances because of the travel downturn caused by the coronavirus, the person said, asking not be identified as the letter was confidential.The European planemaker also asked employees to take 10 days of vacation between now and mid-May, so it can meet demand once business resumes, the people said.An Airbus spokesman confirmed the company has reached agreement with worker representatives to implement a two-week holiday in France, and said a similar accord is being finalized in Germany.The Toulouse, France-based compnay temporarily closed plants in Europe last month and has been reopening them at a slower pace. It said in a statement Friday that it’s “in the process of assessing the implications of the pandemic on its operations and the potential mitigation measures that could be implemented.”Airlines around the world are trying to hang, guarding cash as fleets are grounded and revenue withers. The industry will burn through as much as $61 billion in the second quarter, according to the International Air Transport Association, with revenue set to plummet by 68%. As a result, carriers are holding off taking deliveries of new aircraft and pausing capital investments like planes.Engine-maker Rolls-Royce Holdings Plc, a supplier to Airbus wide-body planes, scrapped its outlook for 2020 on Monday. Last month it said it would significantly reduce all but essential activities at its U.K. civil aerospace facilities because of the coronavirus outbreak.Discount carrier EasyJet Plc, meanwhile, is among the airlines seeking to stretch out deliveries, while its biggest shareholder is mounting a campaign for the U.K. company to cancel a 4.5 billion-pound ($5.5 billion) order for Airbus narrow-body jets.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • Financial Times

      EasyJet boosts cash after fresh pressure from Sir Stelios

      EasyJet became one of the first big companies to reveal it had tapped the government’s emergency loan scheme as it moved to shore up its rapidly eroding cash resources after coming under fresh pressure from its founder, Stelios Haji-Ioannou. The UK-listed budget airline said it had taken £600m from the Covid Corporate Financing Facility and also drawn down the full $500m from its revolving credit facility. The funding boost should help to relieve pressure from Sir Stelios, who warned earlier on Monday that easyJet would run out of money by August if a £4.5bn order for new aircraft from manufacturer Airbus went ahead.

    • Bloomberg

      What I Learned From Trying to Cut My Own Hair

      (Bloomberg Opinion) -- Writing to shareholders this week, BlackRock Inc.s chief executive officer Larry Fink ruminated on how business and society will be reshaped by the searing experience of the new coronavirus:“People worldwide are fundamentally rethinking the way we work, shop, travel and gather. When we exit this crisis, the world will be different. Investors’ psychology will change. Business will change. Consumption will change. And we will be more deeply reliant on our families and each other to stay safe.”I had a similar epiphany this week while trying to cut my own hair — it turns out my regular $30 haircut isn’t as essential as I’d thought. Preparing a meal for my family later that evening made me think that eating out or getting dinner delivered isn’t as rewarding as home cooking. Right now the do-it-yourself version also feels a whole lot safer, and probably will do for a while.Compared to the courage shown by medical workers and those in other essential functions, and the devastation wrought by coronavirus on already vulnerable communities, many of us in the western world have it easy. We’re asked to do no more than stay home. But in between worrying about our jobs, our parents and how to entertain or home-school children, we’re reevaluating priorities. What will we do differently when this is over? What will we prize more and what will we give up? Once the immediate battle to protect employees and remain solvent has passed, the business world will have to confront these questions too. Two themes stand out: Instead of visiting far-flung places and seeking out mass entertainment, I’m sure there will be a bias toward more modest, local activities. And where the coronavirus has exposed dependency or vulnerability, as with the business world’s complex cross-border supply chains, we’ll seek more security and resilience.Looming above all of this is the damage that the lockdowns are inflicting on people’s incomes. The longer the economic shutdown lasts, the more reluctant the world’s consumers will be to spend, period. With more than 10 million Americans filing new unemployment claims in the past fortnight, the omens aren’t good.In the worst-affected sectors such as travel, hospitality and leisure, businesses are already facing a bleaker future. Increased consumer awareness about the negative environmental and social impact of mass tourism has now been compounded by the realization that people on planes and pleasure boats carried the virus around the globe. Lufthansa AG’s boss, Carsten Spohr, thinks the German airline will have to shrink because the economy will be smaller than before. Easyjet Plc’s founder, Stelios Haji-Ioannou, said similar this week when calling on the carrier to cancel a big order from Airbus SE.Even once travel restrictions are lifted, demand for cruises may remain weak for a “significant length of time,” Carnival Corp. warned. The beleaguered company had to offer bond-buyers an 11.5% interest rate to get them to back a $4 billion debt offering. That’s a bad sign.Fitness is another industry that relies on cramming people into confined spaces. Until recently it was booming but customers are discovering much cheaper ways to work out. Having sampled online classes and the time-saving benefit of exercising at, or close to, home, some memberships won’t be renewed. Good news for Peloton Interactive Inc.’s indoor cycling business, perhaps not for Planet Fitness Inc. or The Gym Group Plc. Until coronavirus came along, the tech world seemed hell-bent on taking agency away from individuals and consigning ownership to the dustbin. Why learn to cook when you can have food delivered in 30 minutes? Why own a car when you can take an Uber? Why look after your gadgets, when those nice people at Apple will fix them for you. But as my colleague Adam Minter pointed out this week, it’s only in a crisis that you discover the drawbacks of not being able to repair your own phone.There will be winners from this realignment too. Right now, auto sales are collapsing in Europe because you can’t go to a showroom and you’re not meant to drive far, but the freedom and security of owning a vehicle might cause sales to rebound more quickly than other discretionary purchases (provided of course that governments can curb unemployment). In China, emerging from the first virus wave, cautious consumers have begun returning to car dealers. Home improvement stores saw a brisk trade from customers wanting to fix up their homes, balconies and allotments whilst on lockdown, and some hardware stores remain open. Once the housing market reopens, urbanites may decide they’ve had enough of crowded cities and tiny apartments. The countryside is suddenly more appealing — the more so if employers become more trusting of those who want to work from home. Coronavirus has exposed our vulnerability and it won’t be the last crisis. Our planet-warming emissions mean more pain is preordained. Faced with uncertainty or disaster, humans respond by trying to strengthen their communities. We’ll also seek more control over our lives. For societies, that means equipping our health services, paying key workers properly and securing supplies. As individuals, it means out-sourcing fewer decisions and mastering things for ourselves. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • Financial Times

      Airbus slashes production of most popular passenger jet

      Airbus has sharply reduced production of its most popular single aisle passenger jet and will not return to previous levels this year and beyond as airline customers seek to defer deliveries in one of the worst aviation downturns in recent memory. Airbus said it was monitoring the Covid-19 situation worldwide.

    • Exclusive: Airline crisis forces Airbus to consider A320 output cuts
      Reuters

      Exclusive: Airline crisis forces Airbus to consider A320 output cuts

      Airbus is studying a sharp cut in output of its top-selling A320 plane series amid an industry-wide slowdown triggered by the coronavirus crisis, sources familiar with the matter said. Airbus has asked A320 parts suppliers to slow their deliveries to its factories by 40% to a rate compatible with production of 36 jets a month in the near term, one source said. Airbus additionally faces shortages in its own supply chain as it struggles to bring production back up to previous levels after pausing activity in several factories.

    • Bloomberg

      EasyJet Founder Escalates Feud With Board Over Jet Order

      (Bloomberg) -- EasyJet Plc’s founder escalated his feud with the board, calling for the ouster of a director in a bid to pressure the discount airline into canceling a 4.5 billion-pound ($5.6 billion) aircraft order.Stelios Haji-Ioannou, EasyJet’s biggest owner with a 34% stake, proposed a general meeting to remove director Andreas Bierwirth, according to a letter sent late Wednesday to the airline’s chairman, John Barton. He threatened to challenge one non-executive director every seven weeks, tying up the board with a series of cumbersome and divisive general meetings until it succumbs.Haji-Ioannou, who has long opposed buying new aircraft, this week turned up the heat on a low-simmering campaign to halt the purchase of more than 100 Airbus SE narrow-body jets. The 53-year-old entrepreneur, emboldened by the coronavirus crisis that’s suddenly turned large spending commitments into a millstone, on Sunday demanded the deal for A320-family planes be terminated.“The board is focused on managing the unprecedented challenges facing the airline and the aviation sector as a whole,” EasyJet said in response to Haji-Ioannou’s letter. “We believe that holding a general meeting would be an unhelpful distraction from tackling the many immediate issues our business faces.”EasyJet shares fell 5.4% in London. The stock has declined 65% this year. The airline said Thursday in a stock exchange filing that the board was considering the contents of Haji-Ioannou’s letter and “further announcements will be made as appropriate.”Bloomberg News reported on Wednesday that EasyJet is considering options including raising new debt and equity to provide a buffer against the downturn, which has forced the U.K. airline to ground its fleet.The U.K. carrier is exploring various fundraising scenarios, including commercial and government sources, as well as a delay in plane orders to conserve cash if needed for a longer-term downturn, people familiar with the matter said, asking not to be named because the discussions are confidential. The airline would prefer loans to selling new shares, one of the people said.EasyJet, which is seen as one of the European airlines better-equipped because of its existing cash and credit lines, is discussing the best options to navigate the pandemic-related slowdown and traditionally slower winter season, the people said.The carrier said it had received confirmation Thursday that it is eligible for loans under the Bank of England’s Covid Corporate Financing Facility.Adding liquidity would fortify EasyJet as it digs in for an undetermined period with little revenue. The International Air Transport Association this week warned that airlines will burn through as much as $61 billion worldwide in the second quarter as travel hits bottom.Haji-Ioannou has also called on the company to raise 600 million pounds in equity through a rights issue to existing shareholders. He quit the board in 2010 in a dispute over growth, and has consistently objected to the airline’s growth plans.“There is no doubt in our mind that all airlines have to attempt to delay all capex in the immediate future,” Bernstein analyst Daniel Roeska wrote in a reasearch note. He said he’s uncertain how practical it would be to cancel the order outright, given the potential penalties. “From a strategic point of view, we would see the new aircraft strengthening EasyJet’s long term position.”(Updates with EasyJet statement about access to loan in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • Planemakers brace for sharp cuts in wide-body output: sources
      Reuters

      Planemakers brace for sharp cuts in wide-body output: sources

      Planemakers are looking at drastic cuts in wide-body production amid a slump in demand for the industry's largest jetliners, manufacturing and supplier sources said on Thursday. Deliveries of long-range jets like the Boeing 777 or 787 and Airbus A350 or A330 have been particularly badly hit as airlines seek deferrals and many withhold progress payments. "At a minimum, the (Boeing ) rate could fall by at least half," one industry source said, speaking on condition of anonymity.

    • Planemakers brace for sharp cuts in wide-body output - sources
      Reuters

      Planemakers brace for sharp cuts in wide-body output - sources

      Planemakers are looking at drastic cuts in wide-body production amid a slump in demand for the industry's largest jetliners, manufacturing and supplier sources said on Thursday. Deliveries of long-range jets like the Boeing 777 or 787 and Airbus A350 or A330 have been particularly badly hit as airlines seek deferrals and many withhold progress payments. "At a minimum, the (Boeing ) rate could fall by at least half," one industry source said, speaking on condition of anonymity.

    • Bloomberg

      Richard Branson Wants a Virgin Atlantic Bailout. Really?

      (Bloomberg Opinion) -- In 2017, the British billionaire Richard Branson agreed to cut his stake in Virgin Atlantic Airways Ltd. to just 20% by selling one-third of the airline to Air France-KLM. In December, he had a change of heart about that 220 million-pound ($274 million) deal, and opted to keep his shareholding in the company he founded at 51%. America’s Delta Air Lines Inc. owns the other half.   Branson has referred to the transatlantic carrier as “one of my children”. But with most of the Virgin Atlantic fleet now grounded because of the coronavirus restrictions, he probably wishes he’d taken Air France’s money. The company is now consuming cash at a rapid clip.To help alleviate a financial crunch, Virgin Atlantic is calling on Boris Johnson’s British government to provide 500 million pounds of government-backed loans and credit guarantees, so that credit card processors don’t hold onto its cash. Airbus SE and Rolls-Royce Holdings Plc, which respectively sold planes and engines to Virgin Atlantic, have also been lobbying the U.K. on Virgin Atlantic’s behalf, the Financial Times reported.It’s hard to fathom why Johnson would throw Virgin Atlantic a lifeline before its American and British Virgin Islands domiciled shareholders have reached deeper into their own pockets. Branson himself is worth $5.2 billion, according to the Bloomberg Billionaires Index.So far, the tycoon has injected $250 million into his various Virgin companies, of which more than $100 million has gone to the airline, according to Sky News. But that clearly isn’t enough. While Virgin Atlantic’s financial performance may have improved before the coronavirus hits, in total it lost more than $100 million during 2017 and 2018 — the two most recent years for which its accounts are available.That’s one reason its balance sheet is weaker than its European peers. Lease-adjusted net debt was five times higher than a comparable measure of earnings, according to the latest group accounts (which includes the travel operator Virgin Holidays). Air France-KLM — by no means the strongest airline financially — has net debt of 1.5 times the same earnings measure.  While Virgin Atlantic had almost 500 million pounds of cash at the end of December 2018, much of that money came from customers paying for tickets long before they traveled. Its current liabilities far exceeded its current assets, which is a problem if customers start asking for their money back because they can’t fly.It’s hardly surprising that Airbus and Rolls-Royce are taking Branson’s side, but neither of them were under any obligation to sell aircraft and equipment to a financially stretched airline. Virgin Atlantic had 2.6 billion pounds of future capital commitments for things like planes and engines, according to the 2018 accounts, a pile it added to last summer by placing an order for 14 Airbus A330neos.The parent company, Virgin Travel Group Ltd, further extended itself by providing about 40 million pounds of funding to a regional U.K., airline Flybe Ltd, which subsequently went bust.  Pandemics are a known risk when you’re running an airline, but nobody could anticipate a shock as widespread and potentially long-lasting as this. So some government assistance is probably justified —  in view of the roughly 8,500 jobs at stake. However, the British government’s offer to cover 80% of the wages of furloughed workers is already pretty generous; Virgin Atlantic’s yearly wage bill is more than 300 million pounds.It’s harder to understand why a government should provide loans or guarantees to Virgin Atlantic, when its shareholders or commercial lenders don’t seem willing to — beyond what Branson has chipped in.In fairness, the other big shareholder, Delta, is also in a tight spot. It’s burning through about $50 million of cash a day and Standard & Poor’s, a credit rating agency, has downgraded its debt to junk. However, the U.S. airline successfully extended its credit lines and its government has promised $50 billion in assistance for the industry. Delta’s market value remains above $15 billion. If Branson is short of ready cash, there are other assets he could perhaps monetize, including a majority stake in space company Virgin Galactic Holdings Inc., whose market capitalization is a lofty $2.9 billion. If no more money is forthcoming from the owners, the British government should insist that Branson dilutes his ownership of Virgin Atlantic as originally planned; only this time by signing over the equity to taxpayers.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • Financial Times

      Rolls-Royce and Airbus lobby UK in support of Virgin Atlantic bailout

      Two of the world’s biggest aerospace manufacturers are lobbying the UK government on behalf of Virgin Atlantic as the airline seeks a £500m bailout package of commercial loans and guarantees to survive the fallout from the coronavirus pandemic. Rolls-Royce and Airbus have sent letters to Grant Shapps, the transport secretary, highlighting the importance of Virgin Atlantic to the UK’s manufacturing supply chain. Heathrow airport has also sent a letter to the government on behalf of the airline, said a person with knowledge of the situation.

    • Airlines, Governments And 3PLs Get Creative With Emergency Airlifts
      Benzinga

      Airlines, Governments And 3PLs Get Creative With Emergency Airlifts

      Large numbers of dedicated freighters are descending on China to pick up face masks and other equipment being made in large quantities after the country was able to stop the spread of COVID-19 and reopen factories. No longer requiring as much equipment for its own use, China is churning out millions of pieces of personal protective equipment and other medical items. Charter flights organized by governments and private groups to carry critical medical supplies and other material to areas experiencing high caseloads of COVID-19 are proliferating. In some cases, governments have created airborne supply lines to shuttle huge amounts of supplies to healthcare workers, patients and others with essential jobs who require protection from infection.After first renting entire airplanes for on-demand cargo transport in response to the shortage in airfreight capacity and widespread suspension of passenger flights, some airlines are now setting up regularly scheduled cargo operations.On March 30, Delta Air Lines, Inc. (NYSE: DAL) announced it has started cargo service between Shanghai and Detroit three times per week using Airbus A350-900 aircraft, able to carry 49 tons, to deliver urgent medical supplies. Once the supplies arrive in Detroit, they will be transferred to domestic passenger flights and shipped to cities around the U.S. Delta said it will evaluate increasing frequency to daily flights or open additional U.S. gateways depending on demand. Detroit is considered by U.S. health authorities as a hotspot for the rapid spread of the novel coronavirus.Delta was one of the first passenger carriers to offer its planes to logistics companies on a charter basis.Similarly, Qatar Airways announced on March 30 that it is now running regular cargo routes between Doha and six cities in China using widebody passenger planes. U.S. and French airliftsThe Federal Emergency Management Agency (FEMA) is contracting with private carriers to airlift large quantities of critical supplies to strategically located airports for distribution to nearby cities and states. Atlas Air has flown the first two sections of the mission, dubbed Project Airbridge, delivering medical shipments to New York and Chicago. A third delivery scheduled for today at an undisclosed Ohio airport has been delayed, a FEMA spokeswoman told FreightWaves.The French government has also launched its own version of Project Airbridge, creating an airborne pipeline to move large amounts of equipment from China to France. The French Ministry of Solidarity and Health has hired third-party logistics provider Geodis to organize the flights.Geodis said Tuesday it has chartered two massive Antonov-124 aircraft operated by Moscow-based Volga-Dnepr to make 16 flights in April to supply millions of masks from China. It said the schedule could be extended into May.The first flight from Shenzhen containing 8.5 million masks arrived in Paris. A second flight is scheduled later this week carrying 13 million more masks.The French government is working to deliver one billion masks over the next 14 weeks. Separately, Geodis has leased aircraft from an all-cargo carrier to provide roundtrip charter flights between Chicago and Amsterdam four times per week to meet regular private sector needs.German logistics provider Dascher said its Mexico subsidiary has donated air transport of three million surgical and respiratory masks. The Boeing 787-9 charter flight flew last week from Mexico City to Frankfurt and then Dascher delivered the equipment through its road network.Dascher, like Geodis, is also essentially running a private airline by chartering aircraft to fly between Europe and Asia. It has also set up an air bridge between the U.S., Latin America and Frankfurt for deliveries to Shanghai. Dascher said it is chartering 747s and integrating them into the rotation of flights connecting in Shanghai.Meanwhile, European aircraft manufacturer Airbus is working with Bolloré Logistics to expedite the distribution of two million face masks to health workers in France and Spain. Airbus last week operated one of its own A330-800 passenger aircraft to Tianjin, China, to collect the shipment, and then flew back to Toulouse, France. Some of the shipment was broken down and dispatched to facilities in France, while the remaining load was put on new pallets and onto an Airbus A400M, a four-engine turboprop military aircraft, and flown to Getafe, Spain. Florida-based National Airlines said it recently operated a relief mission to Mumbai, India, with one of its Boeing 747-400 freighters. Last week India closed its borders to contain the spread of the deadly virus. National Airlines is also under contract to transport pharmaceuticals and other medical supplies from India, Europe and China to the U.S. 3PLs handle emergency distributionThird-party logistics providers (3PLs) are doing more than simply arranging charter flights for governments, aid organizations and private companies involved in the COVID-19 response.Geodis is working with the French government to distribute supplies within France. Fedex Express and UPS are delivering test-kit specimens overnight to laboratories around the U.S. on behalf of the U.S. government. UPS is also helping the federal and state governments set up drive-up testing sites and participating in Project Airbridge.As part of the airlift collaboration, FEMA will gain access to UPS's huge Worldport hub in Louisville, Kentucky, for temporary staging of critical shipments from overseas, according to United Parcel Service, Inc. (NYSE: UPS). The integrated logistics giant and express carrier is also helping healthcare distributor Henry Schein Inc. distribute and track delivery of personal protective equipment (PPE) to medical professionals and drive-through test facilities as it gets flown in. UPS is also delivering PPE shipments for the McKesson Corporation (NYSE: MCK), another healthcare distributor, to pop-up testing sites and military bases where military members and civilians returning from overseas are required to quarantine. And UPS is using its air and ground network to deliver tens of thousands of test kits and related supplies each week for several manufacturers, including DuPont.CEVA Logistics, now owned by ocean container line CMA CGM, is using its multi-modal capabilities to overcome supply chain bottlenecks for critical shipments. It said it is handling distribution for one of the medical technology companies appointed by the U.S. government to manufacture and supply COVID-19 test kits. A combination of expedited ground, airfreight and final-mile delivery are being used to get the kits to New Jersey, Seattle, Chicago and other areas with high demand. CEVA said it took charge of the import process, customs clearance and same-day delivery of one million masks donated by Chinese telecommunications company Huawei to the Spanish health service. In southeast England, CEVA will handle the assembly and delivery to hospitals of visors that will be made on 3D printers. A new facility under construction by partner businesses will host 200 to 250 3D printers.Photo: GeodisSee more from Benzinga * Freight Futures Daily Curve: 3/31 * Jobless Claims And The Likely Collapse Of Volumes – FreightWaves NOW * Knight-Swift CEO Discusses Company's Challenges, Response To COVID-19(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    • Bloomberg

      Dubai Moves to Shield Prized Emirates Airline From Virus Fallout

      (Bloomberg) -- Over the course of more than three decades, Dubai has morphed from distant desert outpost into business metropolis, relying on state-owned airline Emirates to funnel many millions of travelers through the bustling hub each year. Now that the coronavirus has forced the carrier to suspend operations, the government is quickly swooping in to protect its most important growth engine.Dubai’s deputy ruler, Sheikh Hamdan bin Rashid Al Maktoum, said on Tuesday that the state will grant unspecified financial aid to Emirates, and that the government is committed to providing the full support by injecting fresh capital. It’s among the first state-sponsored bailouts of a carrier due to the coronavirus, which has upended the industry on an unprecedented scale.Emirates is the most visible emblem of Dubai’s transformation over the years, starting out with a pair of used aircraft in the mid-1980s to become an aviation force unmatched in global reach and boasting the biggest fleet of wide-body aircraft by far. Emirates has more than 100 Airbus SE A380s in operation alone, which rain down around the clock on Dubai International, the busiest airport by international traffic and a key transfer hub for global travel.Now Emirates, like most other airlines around the world, has been forced to ground virtually its entire passenger fleet after countries sealed off access to fight the virus. That has dramatically suffocated demand, which was already in decline as a depressed oil price weighed on corporate travel. Tourism from China also took a hit after the virus first erupted there late last year.“We don’t know how much demand is going to come back and when,” said John Strickland, an independent aviation consultant at JLS Consulting in London. “Emirates and other airlines will be carrying overcapacity for quite some time.”Airlines have been particularly hard hit by the abrupt collapse in air travel as countries lock down to slow the spread of the virus. The International Air Transport Association, which represents 290 airlines around the world, estimates the industry may suffer more than $250 billion in lost revenue this year. Carriers like Deutsche Lufthansa AG and EasyJet Plc have grounded their fleets, and many carriers have called on government aid to help them weather the crisis.Emirates is the largest of the major Middle East carriers, which also include Qatar Airways QCSC and Etihad Airways PJSC. Qatar said last week that it has maintained about a third of its operating schedule, in part because the country’s flag carrier has a more diverse fleet that also includes narrow-body airliners. Emirates, by contrast, only flies the biggest category of jets, including 115 A380s, which most carriers have mothballed for the time being.The three Middle East airlines are all state owned, giving them a potential advantage in swiftly securing bailout packages. In Europe, carriers from Air France-KLM Group to Lufthansa have asked for aid, while the massive U.S. stimulus package also includes support for the ailing industry. Airbus has said that while it doesn’t require state aid for now, it supports airlines’ efforts to secure government lifelines.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • Airbus may slash output of best-selling jet
      Reuters Videos

      Airbus may slash output of best-selling jet

      Airbus may slash output of its best-selling jet. Reuters sources say production of A320 planes may have to fall by a half. The company currently turns out 60 of the model every month. But the global virus crisis is posing headaches regarding production and delivery. Airbus had no immediate comment on the report. It's expected to make a final decision before a company shareholder meeting in mid-April. Only Thursday (April 2) Reuters reported that it and rival Boeing may both cut production of larger wide-body jets. That includes models like Boeing's 777 and Airbus's A350. Signs of a sales downturn are already emerging. Friday (April 3) saw leasing firm Avolon cancel orders for 75 Boeing planes and 4 Airbus widebodies. There was also yet more evidence of how the planemakers' customers are suffering. A separate Reuters source says Air France-KLM is in talks over major state aid. It's said to be discussing 6.5 billion dollars in loans backed by the French and Dutch governments. Airbus and Boeing will be following such news very closely.