Page 3 - AAA 18 feb,2016
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BUSINESS A25
Thursday 18 February 2016
Airbus, Boeing announce $3B airplane deals at Singapore show
A. LIANG A Boeing 737 MAX airplane is shown on the assembly line in Renton, Wash. Airbus and Boeing an- Airlines are also deterred
Associated Press nounced modest aircraft orders at the Singapore Airshow on Wednesday. by the filled order books
SINGAPORE (AP) — Airbus of both Airbus and Boeing,
and Boeing announced (AP Photo/Ted S. Warren) that could mean a long
modest aircraft orders at wait for the delivery of air-
the Singapore Airshow es over the past several because the fuel price was ICF International. planes, Stewart said.
on Wednesday that indi- months means airlines will high, so there was an in- “But now the fuel price is Okay Airways Wang Shush-
cated a lull in demand for keep their older less-fuel centive to buy the more fu- low, so some airlines will eng said his company’s
the big manufacturers af- efficient aircraft for longer el-efficient planes and get keep their older planes order for 737s is not part of
ter the 2014 show hauled and buy fewer new jets. rid of the old ones,” said longer, and therefore not a deal Boeing signed with
in more than $30 billion of “One of the reasons why David Stewart, an aviation need the new. It’s a quiet China last year to supply
deals. the order books are full is and aerospace adviser at time for all of us.” 300 aircraft worth $38 bil-
Airbus announced an or- lion.
der for six A350-900s, val- He said the order will “fur-
ued at $1.8 billion at list ther modernize our fleet
prices from Philippine Air- and ensure we operate
lines. Boeing announced the most efficient fleet well
a deal for 12 of its 737 jets into the future”.
with a privately-owned Both jet manufacturers
Chinese carrier Okay Air- made their announce-
ways, valued at $1.3 bil- ments on the second day
lion. of the Singapore Airshow,
Boeing and Airbus execu- which ends Feb. 21. More
tives at the show have than 1,000 companies are
voiced confidence that taking part.
air travel in Asia will contin- The previous show in 2014
ue to grow strongly. They generated deals worth
said no Asian airlines had $32 billion, and organizers
deferred orders already will release this year’s total
placed. after the event’s trade pe-
But some industry experts riod ends on Friday.q
say the slump in oil pric-
Bombardier to streamline, cut 7,000 jobs
NEW YORK (AP) — Bom- in the transportation seg- At the same time, it says it
bardier says it plans to cut will hire for other positions
approximately 7,000 jobs ment. The aerostructures in growing areas of its busi-
— or about 10 percent of ness. Bombardier Inc. plans
its global workforce— over and engineering services to hire for its C Series aircraft
two years, even as it adds program and other areas.
jobs in growing areas of unit will eliminate 2,500 Bombardier said Wednes-
its business. day that the job cuts and
The company said Wednes- jobs, while the product hirings will occur in 2016
day that the job cuts will and 2017. The company
include production and development engineer- anticipates $250 million to
non-production employ- $300 million in restructuring
ees, with 2,000 of the po- ing, aerospace division will charges related to the job
sitions being contractors. cuts.
It had 70,900 employees cut 800 positions. The busi- Bombardier also an-
worldwide at 2015’s end, nounced that Air Canada
according to Bombardier. ness aircraft segment will has signed a letter of intent
The positions to be elimi- for up to 75 C Series air-
nated are mostly in Can- eliminate 500 jobs. craft. Based on the list price
ada and Europe, Bombar- of the aircraft, a firm order
dier said. The biggest cut Bombardier Inc. has been would be valued at about
— 3,200 positions — will be $3.8 billion.q
modifying production
rates for some of its aircraft
and said it is adjusting its
workforce to meet mar-
ket demand. In addition,
aerospace development
programs and projects are
slowing down as expect-
ed, so employee levels are
being looked at to match
future workloads.
ABN Amro reports big jump in 2015 profit
AMSTERDAM (AP) — ABN “2015 was a good year for financial crisis, together
Amro, the Dutch bank that the bank.” with the Dutch operations
began a phased return to Operating income rose 5 of Belgium’s now-defunct
the market last year, says percent to 8.4 billion euros Fortis NV, which was part of
its 2015 net profit soared 70 ($9.4 billion) from 2014. Un- a consortium trying to take
percent to 1.9 billion euros derlying net profit, stripping over ABN Amro.
($2.1 billion), despite rising out exceptional items, rose The first chunk of ABN Amro
regulatory costs. 24 percent. — around 20 percent of its
Chairman of the bank’s The Dutch state spent 21.7 stock — was re-privatized in
managing board Gerrit billion euros to national- November.q
Zalm said Wednesday that ize the bank during 2008’s
