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France says Ariane 6 accord calls for public aid, 11% cost cuts
  + stars: | 2023-11-06 | by ( ) www.reuters.com   time to read: +2 min
[1/2] General view of Ariane 6, Europe's next-generation space rocket, production line of Ariane Group in Bremen, Germany, February 19, 2019. The deal between Europe's three leading launch nations also clarifies usage of the European spaceport in French Guiana and opens up competition to future launchers, Le Maire said. A separate statement by France, Germany and Italy said Avio's (AVI.MI) Vega C would receive up to 21 million euros in public support. "This is a major success and a decisive point in European space history. It preserves European unity on the question of access to space," Le Maire told reporters following talks between members of the 22-nation European Space Agency (ESA).
Persons: Europe's, Fabian Bimmer, Bruno Le Maire, Le Maire, Safran, Avio's, Vega, Tim Hepher, Charlotte Van Campenhout, Mark Potter Organizations: Ariane, REUTERS, Rights, French Finance, Airbus, European Space Agency, ESA, Thomson Locations: Bremen, Germany, France, Italy, Guiana
A worker of Ariane Group stands in front of a Ariane 6 rocket's Vulcain 2.1 engine, prior to the visit of French President Emmanuel Macron, in Vernon, France January 12, 2021. Christophe Ena/Pool via REUTERS/File Photo Acquire Licensing RightsROME, Nov 6 (Reuters) - Italy, France and Germany on Monday have reached a deal underpinning future launches of the delayed Ariane 6 and Avio's (AVI.MI) smaller Vega-C rockets, Italy's industry minister said. The smaller Vega-C has been grounded since Dec. 22 after a failed launch. Italy has been campaigning for the rocket to be marketed separately from ArianeGroup subsidiary Arianespace, which currently sells and operates all major European launches. The three-way agreement was signed during a European Space Agency (ESA) ministerial meeting in Seville, Spain.
Persons: Emmanuel Macron, Christophe Ena, Safran, Urso, Arianespace, Josef Aschbacher, Giuseppe Fonte, Cristina Carlevaro, Federico Maccioni, Tim Hepher Organizations: Ariane, Rights, Airbus, Space Agency, ESA, Soyuz, Thomson Locations: Vernon, France, Italy, Germany, Europe, Vega, Milan, Avio, Seville, Spain, Ukraine
Director-General of the European Space Agency (ESA) Josef Aschbacher smiles as he attends an interview with Reuters during the World Economic Forum (WEF) in Davos, Switzerland, January 18, 2023. Josef Aschbacher, director general of the European Space Agency (ESA), said a more precise 2024 launch period would be defined following a delayed long-duration firing test due on Nov. 23. Aschbacher declined to comment on the state of negotiations ahead of the Seville "Space Summit", which is also due to address climate change and Europe's ambitions in space exploration. This is something that is highly critical for Europe," Aschbacher said. But in Europe's system of horse-trading for space funding, any agreement on exploration is likely to depend on progress on the critical issue of Ariane 6 funding, the people said.
Persons: Josef Aschbacher, Arnd, Aschbacher, Safran, Anders Fogh Rasmussen, Tim Hepher, Mark Potter Organizations: European Space Agency, ESA, Reuters, Economic, REUTERS, Rights, Elon, SpaceX, Russian Soyuz, Airbus, NATO, Thomson Locations: Davos, Switzerland, Seville, Spain, France, Germany, Italy, Russian, East, Ukraine, Europe, India, China, United States, Russia
In an interview, CEO Larry Culp said the company is aiming for a 20% to 25% year-on-year increase in the engine deliveries in 2024, lower than a revised 40% to 45% annual growth this year. Still, hitting the target will not be easy as it requires quarter-on-quarter improvements in the supply chain, he said. LEAP engines, which GE produces in a joint venture with France's Safran (SAF.PA), power the narrowbody aircraft of Boeing Co (BA.N) and Airbus (AIR.PA). It forced GE to trim the delivery growth target for LEAP engines this year by at least 5 percentage points and push out some of the deliveries into 2024 and 2025. But the demand for both aftermarket services and new engine deliveries is so strong that GE and its suppliers need to do more, Culp said.
Persons: Larry Culp mingles, Alwyn Scott, Larry Culp, France's Safran, delinquencies, Pratt, Culp, airframers, " Culp, Rajesh Kumar Singh, Jonathan Oatis Organizations: Electric Co, REUTERS, Rights, General, Reuters, GE, Boeing Co, Airbus, Boeing, Thomson Locations: Tarrytown , New York, U.S
[1/2] A Boeing logo is seen at the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 18, 2023. The move comes more than three years after it pulled out of a billion-dollar deal to buy the commercial division of local planemaker Embraer (EMBR3.SA). Boeing sees both firms aligned in the goal of developing Brazil's aerospace ecosystem. Boeing's expansion in the South American nation led two domestic defense and aerospace industry groups to sue the U.S. company for hiring local talent, a move they see harming Brazil's industry. Both groups have Embraer as a member,Boeing defended its move, saying its presence will boost Brazil's aerospace ecosystem.
Persons: Benoit Tessier, DOS CAMPOS, Brendan Nelson, Nelson, Sao Jose dos Campos, We're, Landon Loomis, Gabriel Araujo, David Gregorio Our Organizations: Boeing, Paris, REUTERS, SAO, DOS, Embraer, EMBR3, Reuters, SAF, GOLL4, U.S ., America & Caribbean, Thomson Locations: Le Bourget, Paris, France, Brazil, U.S . Brazil, Sao Jose, Sao Paulo, American, U.S, America
"CFM is reviewing the documentation turned over by AOG Technics as part of our effort to determine the full extent of their sale of parts with fraudulent documentation," CFM said. AOG Technics could not be reached for comment. The CFM56 is the most sold jet engine in history and was developed by a transatlantic venture that turns 50 next year. The findings cover thousands of parts for the CFM56 engine as well as hundreds of parts for GE's CF6 engines, used mainly on commercial freighters. CFM56 engines entered service in 1982 and power the previous generation of Boeing (BA.N) 737s and about half the previous generation of Airbus (AIR.PA) A320s.
Persons: Philippe Wojazer, France's Safran, AOG Technics, Jose Zamora Yrala, CFM's, Tim Hepher, Bill Berkrot, Deepa Babington Organizations: REUTERS, Rights, Jet, CFM, GE Aerospace, AOG, CFM Materials, Boeing, Airbus, Thomson Locations: Reau, Paris, France, London
"CFM is reviewing the documentation turned over by AOG Technics as part of our effort to determine the full extent of their sale of parts with fraudulent documentation," CFM said. AOG Technics could not be reached for comment. CFM56 engines are repaired through third-party networks or at maintenance, repair and overhaul (MRO) facilities operated by CFM itself. The company said it had found four cases where parts from AOG entered its own facilities, impacting 16 engines. CFM said its more recent LEAP engine, used on the Boeing 737 MAX and some Airbus A320neo jets, was not affected.
Persons: Benoit Tessier, France's Safran, AOG Technics, Jose Zamora Yrala, CFM's, AOG, Tim Hepher, Chris Reese, Bill Berkrot Organizations: GE Aerospace, International Paris Air, Le, REUTERS, Rights, Jet, CFM, AOG, CFM Materials, Boeing, Airbus, Thomson Locations: Le Bourget, Paris, France, AOG
Germany's Scholz targets green jet fuel role, Airbus investment
  + stars: | 2023-09-25 | by ( ) www.reuters.com   time to read: +3 min
[1/2] German Chancellor Olaf Scholz and Transport Minister Volker Wissing attend the third national aviation conference at Lufthansa Technik, in Hamburg, Germany, September 25, 2023. Airbus (AIR.PA) is considering joining the consortium to use the fuel, HH2E said. Scholz also said Germany was targeting investment for a potential new plane to replace the Airbus single-aisle A320. "We would like to see further investment in aviation - not just in Hamburg, but throughout Germany, as part of the successor to the Airbus A320," he said. In July, Airbus expanded production of the same series in Toulouse, France, to meet rising demand.
Persons: Olaf Scholz, Volker Wissing, Fabian Bimmer, HH2E, Scholz, Carsten Spohr, planemaker, Andreas Rinke, Tim Hepher, Rachel More, Friederike Heine, Barbara Lewis, Sharon Singleton Organizations: Lufthansa Technik, REUTERS, Rights, Airbus, DHL, National Aviation Conference, EU, Industry, Lufthansa, SAF, Thomson Locations: Hamburg, Germany, Europe, France, German, Toulouse
By Andrew HayleyBEIJING (Reuters) - U.S. incentives to boost consumption of more environmentally friendly fuel has created a new market for used Chinese cooking oil, worth almost $390 million in the last 12 months and growing rapidly, China's customs data shows. In the first eight months of 2023, Chinese exports of used cooking oil (UCO) to the U.S. totalled almost 384,000 metric tons, customs data shows. Used cooking oil can be refined into fuels such as biodiesel and SAF, which can be blended with conventional fuels to reduce carbon emissions. State-run Chinese oil majors Sinopec and PetroChina, which are among those shipping UCO cargoes to the U.S., according to Kpler, did not respond to requests for comment. Used cooking oil can be one-third the price of fresh vegetable oil, and has lower carbon intensity than non-waste feedstocks such as palm or canola oil.
Persons: Andrew Hayley BEIJING, Biden, Kpler, Sophie Byron, Global's Byron, Andrew Hayley, Stephanie Kelly, Christian Schmollinger Organizations: U.S, SAF, P, Argonne National Laboratory, U.S . Department of Agriculture, Exports, European Commission, European Union Locations: China, U.S, California, Argonne, U.S . China, Europe, Germany
"Potentially, that means between 48 and 96 aircraft being taken out of service whilst airlines arrange for the parts to be removed," Reeve added. They asked the High Court on Tuesday to order AOG and Zamora Yrala to preserve relevant documents and to disclose sales documents relating to CF6 and CFM56 engines since February 2015. "Everybody now knows that AOG parts are not necessarily to be taken to be the claimants' parts," he said. The CFM56 jet engine powers the previous generation of Boeing 737s and about half of the previous generation of Airbus A320s. Britain's Civil Aviation Authority said in August it was "investigating the supply of a large number of suspect unapproved parts" through London-based AOG Technics.
Persons: Alwyn Scott, Matthew Reeve, Safran, AOG Technics, Reeve, Jose Zamora Yrala, AOG, Zamora, Zamora Yrala, Tom Cleaver, Sam Tobin, Tim Hepher, Tomasz Janowski Organizations: General, Co, REUTERS, Jet, CFM, General Electric, London's, Court, GE, Britain's Civil Aviation Authority, Boeing, Airbus, European Union Aviation Safety Agency, Bloomberg, Thomson Locations: Boston , Massachusetts, U.S, British, London, AOG
CNN —The United Nations’ human rights body (UNJHRO) has received reports of at least 13 mass graves” in the Sudanese city of El Geneina, a special envoy to the war-torn country told the UN Security Council Wednesday. The mass graves are believed to contain civilians from the ethnic Masalit tribe who were killed in attacks by the paramilitary Rapid Support Forces (RSF) and allied Arab militias, according to Sudan Volker Perthes. The Masalit tribe and other non-Arab communities in Sudan are often targeted by Arab militias, with support from the RSF, according to Human Rights Watch. At least 87 people, mostly ethnic Masalit, were discovered in a mass grave in El-Geneina’s Al-Madaress and Al-Jamarek districts in July. Last week, the United States imposed sanctions on RSF’s deputy leader Abdelrahim Dagalo for human rights violations after a series of CNN investigations exposed the group’s brutal war strategies.
Persons: Sudan Volker Perthes, Perthes, Geneina’s, Abdelrahim Dagalo Organizations: CNN, United Nations, UN, Rapid Support Forces, Representative, Sudanese Armed Forces, SAF, Human Rights, UN Human Rights, International Organization for Migration Locations: Sudanese, El, Sudan, El Geneina, Darfur, United States, country’s, Khartoum, Omdurman
RTX said on Monday it would have to pull 600 to 700 of its Pratt & Whitney Geared Turbofan (GTF) engines from Airbus A320neo jets for quality inspections over the next three years. The engine issue was first disclosed in July, but RTX made the extent of the problem clearer on Monday. The announcement caused waves up and down the industry, from component manufacturers like Japan's Kawasaki Heavy Industries to airline carriers like Germany's Lufthansa that rely on the popular Airbus jets. In July, RTX said microscopic contaminants were found in a powdered metal used in high-pressure turbine discs that are part of the GTF engine's core. RTX is one of two manufacturers of engines for the popular narrowbody Airbus A320neo, the other being CFM International, a joint venture between GE (GE.N) and Safran (SAF.PA).
Persons: Benoit Tessier, RTX, Guillaume Faury, Ken Herbert, Japan's IHI, Safran, Valerie Insinna, Rajesh Kumar Singh, Abhijith, Aniruddha Ghosh, Mehr Bedi, David Gaffen, Arun Koyyur Organizations: Raytheon Technologies Corporation, International Paris Air, Le, REUTERS, Aerospace, Airbus, Pratt & Whitney, Washington D.C, Japan's Kawasaki Heavy Industries, Lufthansa, Raytheon, United Technologies, Capital, AIRLINES, HIT Aerospace, London, Melrose Industries, Kawasaki Heavy Industries, Aero, Air New Zealand, Singapore Airlines, Wizz, Airbus A320neo, CFM International, GE, Thomson Locations: Le Bourget, Paris, France, Washington, RTX, New Delhi, Bengaluru
Visitor passes the Raytheon Technologies Corporation (RTX) logo at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 22, 2023. In July, RTX said a rare powder metal defect could lead to the cracking of some engine components and called for accelerated inspections affecting 200 engines by mid-September. Repair work that CEO Greg Hayes had initially expected would take 60 days is now projected to last up to 300 days per engine. An average of 350 jets could be grounded per year through 2026, with as many as 650 jets sitting idle in the first half of 2024. Disclosing higher-than-expected gross costs of $6-7 billion for dealing with the problem, RTX said it expected an up to $3.5 billion pre-tax hit to profits over the next several years.
Persons: Benoit Tessier, Pratt & Whitney, RTX, Greg Hayes, Safran, Hayes, Germany's, Robert Stallard, Valerie Insinna, Abhijith, Tim Hepher, Arun Koyyur, Nick Zieminski, Grant McCool Organizations: Raytheon Technologies Corporation, International Paris Air, Le, REUTERS, Pratt &, RTX Corp, Airbus, Pratt, Raytheon, GE, CFM, Boeing, Aero, Germany's Lufthansa, AIRBUS, U.S, Spirit Airlines, JetBlue Airways, Hawaiian Airlines, Jefferies, Vertical Research Partners, Thomson Locations: Le Bourget, Paris, France, Clayville , New York, Washington, Bengaluru
The logo of the European Space Agency (ESA) is seen during the ESA Council at Ministerial level (CM22) at the Grand Palais Ephemere in Paris, France, November 23, 2022. REUTERS/Benoit Tessier/File Photo Acquire Licensing RightsPARIS, Sept 8 (Reuters) - The European Space Agency on Friday welcomed a deal for Britain to resume full membership of Europe's Copernicus programme, easing doubts over the next batch of climate-tracking satellites and the completion of development work by European space firms. Copernicus is a set of six families of Sentinel satellites designed to read the planet's "vital signs" including carbon dioxide. But following Thursday's agreement, Director General Josef Aschbacher said the deal would allow UK scientists and industry to benefit fully from one of Europe's leading space programmes. The agreement is a boost for satellite manufacturers including Europe's Airbus (AIR.PA), France' Thales (TCFP.PA) and Germany's OHB (OHBG.DE) that had been awarded contracts to build the new set of satellites subject in part to an EU funding deal.
Persons: Benoit Tessier, Europe's Copernicus, Copernicus, Josef Aschbacher, Aschbacher, Germany's, Safran, Tim Hepher, David Evans Organizations: European Space Agency, ESA, Palais Ephemere, REUTERS, Rights, Sentinel, Reuters, Airbus, Thales, Thomson Locations: Paris, France, Britain
Ambassador to the United Nations, Linda Thomas-Greenfield, meets with interim Chadian President Mahamat Idriss Deby at the presidential palace in N'Djamena, Chad, September 7, 2023. REUTERS/Michelle Nichols Acquire Licensing RightsN'DJAMENA, Sept 7 (Reuters) - Chad's interim President Mahamat Idriss Deby spoke with the U.S. envoy to the United Nations about challenges to holding an election, the envoy said on Thursday, more than two years after bypassing the central African country's constitution to install himself as leader. Military leaders in Chad originally promised an 18-month transition to elections when Deby seized power after his father, President Idriss Deby, was killed on the battlefield during a conflict with insurgents, ending decades of authoritarian rule. Ambassador to the United Nations, Linda Thomas-Greenfield - a member of President Joe Biden's cabinet - met with Deby in Chad's capital N'Djamena. Tensions have flared again on Chad's northern border with Libya, where fighting between rebels and the army subsided after president Idriss Deby was killed in 2021.
Persons: Linda Thomas, Mahamat Idriss Deby, Michelle Nichols, Deby, Idriss Deby, Joe Biden's, Thomas, Greenfield, Chad's, Ed McAllister, Josie Kao Organizations: United Nations, REUTERS, Rights, U.S, United, Military, Thomas, SAF, Rapid Support Forces, Thomson Locations: Greenfield, N'Djamena, Chad, Rights N'DJAMENA, United Nations, U.S, Chad's, France, Libya, Sudan
US Sanctions Deputy Leader of Sudan's RSF Over Abuses
  + stars: | 2023-09-06 | by ( Sept. | At A.M. | ) www.usnews.com   time to read: +4 min
By Michelle NicholsN'DJAMENA (Reuters) - The United States is imposing sanctions on the deputy leader of Sudan's paramilitary Rapid Support Forces (RSF) over human rights abuses, the U.S. envoy to the United Nations will announce during a trip to Chad's border with Sudan on Wednesday. Previous sanctions, levied on companies, also targeted the army. While the sanctions carry political weight, it is unclear that they would have any impact on the course of the current conflict. In June, the U.S. imposed sanctions on companies it accused of fuelling the conflict in Sudan. The U.S. Treasury Department targeted two companies affiliated with Sudan's army and two companies affiliated with the RSF, accusing them of generating revenue from the conflict and contributing to the fighting.
Persons: Michelle Nichols N'DJAMENA, Mohamed Hamdan Dagalo, RSF, Dagalo, Linda Thomas, Greenfield, Washington, Omar al, Bashir, Abdelrahim Dagalo, Abdel Fattah al, Burhan, Nafisa Eltahir, Daphne Psaledakis, Aidan Lewis, William Maclean Organizations: Rapid Support Forces, United Nations, Reuters, Thomas, SAF, United Arab, The U.S . Treasury Department Locations: United States, U.S, Sudan, West Darfur, Sudan's Darfur, Darfur, Chad, Khartoum, Hemedti, United Arab Emirates, Russia, The U.S
Inclusive, global trade is the keyFree trade can help lower the cost of energy transition. Deloitte's outlook showcases a steady hydrogen market growth, from $642 billion in annual revenue in 2030 to $1.4 trillion per year in 2050, in which green hydrogen comprises some 85% of the hydrogen market. Global trade between major regions can represent almost one-fifth of total clean hydrogen volume. The opportunity for developing economiesRegions with high renewable endowment and ample land availability could likely produce cost-competitive green hydrogen in quantities that exceed domestic needs. To find out more, read Deloitte's Green hydrogen: Energizing the path to net zero report.
Organizations: Government, Global, North, Deloitte Global, SAF, Deloitte Investments, Deloitte, Insider Studios, Deloitte Touche Tohmatsu Locations: North Africa, Australia, North America, East, South America, Africa, Japan, Korea, Europe, China, India, Middle East
Qantas to secure new planes from Airbus, Boeing
  + stars: | 2023-08-23 | by ( ) www.reuters.com   time to read: +2 min
The multi-billion dollar order is split between 12 Airbus A350s and 12 Boeing 787s, which will arrive from fiscal 2027 and into the next decade, Qantas said. Qantas said the deal was aimed at providing a replacement for its current Airbus A330 and Airbus A380 aircraft. This has the potential to meet up to 90% of the group’s interim SAF target for 2030, Qantas said. "SAF reduces lifecycle carbon emissions by up to 80 per cent and is a key part of Qantas’ emissions reduction plan," it said. Reuters earlier in the week had reported, citing industry sources, that Boeing was nearing a deal for its 787 Dreamliner aircraft with Qantas.
Persons: Loren Elliott, Vanessa Hudson, Stan Deal, Rishav Chatterjee, Shailesh Kuber, Maju Samuel Organizations: Qantas, Sydney Airport, REUTERS, Australia's Qantas Airways, Airbus, Boeing, SAF, Global, Incoming Qantas, Boeing Commercial Airplanes, Reuters, Thomson Locations: Australia, Sydney, Bengaluru
[1/2] A view of a wind farm is seen in the city of Osorio, in southern Brazil, November 30, 2007. Rollemberg said the government-sponsored bills would be focused on four main topics: establishing a new carbon market, regulating offshore wind power, launching the "Fuel of the Future" project and regulating green hydrogen. That bill might be submitted to Congress as early as next week, the secretary said. It's more than enough time for Congress to pass all the bills," Rollemberg said. The South American nation is set to host the U.N. climate talks in 2025 in the Amazonian town of Belem.
Persons: Jamil Bittar, Rodrigo Rollemberg, Luiz Inacio Lula da Silva, Jair Bolsonaro, Lula, Rollemberg, Leticia Fucuchima, Gabriel Araujo, Marguerita Choy Organizations: REUTERS, Rights, Boeing, SAO PAULO, Reuters, United Nations, SAF, Thomson Locations: Osorio, Brazil, BRAZIL, Dubai, Belem
ESA chief sees Ariane 6 debut launch delayed to next year
  + stars: | 2023-08-16 | by ( ) www.reuters.com   time to read: +2 min
[1/2] A worker of Ariane Group stands in front of a Ariane 6 rocket's Vulcain 2.1 engine, prior to the visit of French President Emmanuel Macron, in Vernon, France January 12, 2021. Christophe Ena/Pool via REUTERS/File Photo Acquire Licensing RightsPARIS, Aug 16 (Reuters) - The first launch of Europe's new Ariane 6 rocket has slipped into 2024 after an incomplete recent ground test, the head of the European Space Agency suggested in remarks to Reuters. Ninety percent of July's objectives were met and further tests are scheduled for September, it added. "After this series of tests we plan to consolidate a launch date for Ariane 6," ESA Director General Josef Aschbacher told Reuters. Asked whether it was fair to assume that plans for a test launch before the end of the year were now out of reach, Aschbacher told Reuters, "This is fair to say, yes".
Persons: Emmanuel Macron, Christophe Ena, Safran, Josef Aschbacher, Aschbacher, Guillaume Faury, Tim Hepher, Gerry Doyle Organizations: Ariane, Rights, European Space Agency, Reuters, ESA, Airbus, Paris Air Forum, Thomson Locations: Vernon, France, Guiana, Germany, European
Khartoum’s morgues have reached “breaking point,” international aid group Save The Children said Tuesday. Bodies in the morgues are also decomposing as prolonged power outages have left them without refrigeration, the group said. Most of the hospitals in the capital and other states are out of service, Save the Children added. Residents of Omdurman, north of Khartoum, told CNN that fighting had intensified on Tuesday, saying they heard heavy artillery and bombardment overnight. The fighting has left Khartoum in ruins.
Persons: morgues, Abdallah Attiya, , Bashir Kamal Eldin Hamid, Abdel Fattah al, Burhan, Mohamed Hamdan Dagalo, Omar al, Bashir, RSF, Organizations: CNN, Sudanese Armed Forces, SAF, Rapid Support Forces, Humanitarian Affairs, Federal Ministry of Health, UNICEF, UN, Sudanese Doctors Syndicate, Al, Health, Nutrition, Sudanese, International Organization for Migration, Integrated Food Locations: Sudan, Khartoum, Al Arabiya, morgues, Omdurman, , United States, Saudi Arabia, Jeddah
Neste's output snafu dents net-zero aviation goals
  + stars: | 2023-07-27 | by ( ) www.reuters.com   time to read: +2 min
Neste’s production woes are a big headache for Chief Executive Matti Lehmus but also for the aviation sector. That includes up to 1 million tons of sustainable aviation fuel (SAF), which is key to make planes greener as it cuts carbon emissions by up to 80%. Neste is now predicting that it will produce 230,000 tons less of renewable diesel and sustainable aviation fuel in the second half of 2023. Neste's production problems will further complicate the aviation race to net zero. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Matti Lehmus, Pamela Barbaglia, Lisa Jucca, Streisand Neto Organizations: Reuters, Twitter, Thales, Thomson Locations: Singapore, Neste
Rolls-Royce boss reaps benefits of setting bar low
  + stars: | 2023-07-26 | by ( ) www.reuters.com   time to read: +2 min
LONDON, July 26 (Reuters Breakingviews) - Six months after calling Rolls-Royce (RR.L) a “burning platform”, Chief Executive Tufan Erginbilgic is giving Britain’s flagship engineering group a high five. Shares spiked 20% as investors celebrated the possibility of free cash flow hitting 1 billion pounds in 2023, 37% above consensus. The company had nearly 3.3 billion pounds of net debt last year, and Barclays analysts are pencilling in an increase this year. Erginbilgic can safely argue that Rolls-Royce is no longer a burning platform, but until he closes that gap he can expect heat from investors. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Tufan Erginbilgic, Erginbilgic, France’s Safran, Pamela Barbaglia, Aimee Donnellan, Oliver Taslic Organizations: Reuters, Royce, Barclays, Electric, Twitter, Thales, Thomson
Microscopic contaminants were found in a metal used in the engine's high-pressure turbine discs - part of the engine core. In an interview, Chief Executive Greg Hayes acknowledged the airlines' frustration over a spate of problems with the Geared Turbofan (GTF) engines over the last seven years. While the latest GTF issue could be the last straw for some, we suspect that the negative (share price) response is overdone". Low-cost Indian carrier Go First, which plunged into financial crisis this year, blamed "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neos. Announcing quarterly earnings on Tuesday, RTX increased its 2023 sales expectation from $72 billion to $73 billion to $73 billion to $74 billion.
Persons: Whitney, Pratt, Greg Hayes, Safran, RTX, Robert Stallard, Wizz, Hayes, Pratyush Thakur, Valerie Insinna, Mike Stone, Susan Mathew, Rajesh Singh, Tim Hepher, Shounak Dasgupta, Sharon Singleton, Nick Zieminski Organizations: Pratt, Airbus, U.S, RTX Corp, Raytheon Technologies, CFM International, GE, Reuters, Research, Spirit Airlines Inc, JetBlue Airways, Wizz, Thomson Locations: Paris, Bengaluru, Washington, Chicago
[1/2] Model of a Pratt & Whitney GTF engine is displayed at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 20, 2023. Engines potentially affected by the metal powder issue will not be put through the entire overhaul cycle, which typically lasts four to five months, Hayes said. Hayes acknowledged that news of the latest GTF problem was a "disappointment" but added that he expects the share price to recover. According to data from CAPA - Centre for Aviation, Pratt & Whitney has retained a market share of about 45 percent since 2017. The PW1100G is the GTF model affected by the powder metal problem.
Persons: Pratt & Whitney, Benoit Tessier WASHINGTON, Greg Hayes, Hayes, Safran, RTX, Mike Stengel, Valerie Insinna, Marguerita Choy, Bill Berkrot, Jonathan Oatis Organizations: Pratt &, International Paris Air, Le, REUTERS, RTX, Airbus, Raytheon, Reuters, CFM International, General Electric, CAPA, Centre for Aviation, Thomson Locations: Le Bourget, Paris, France, Washington
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