Record breaking passenger numbers driven by increased air services as YVR embarks on $9.1 billion expansion program to keep pace

Richmond, B.C. | February 13, 2019–Today, Vancouver International Airport (YVR) released final passenger numbers for 2018, confirming another year of record-breaking growth. YVR welcomed more than 25.9 million passengers, a 7.3 per cent increase over 2017, reaching its 25 million passenger milestone two years ahead of forecast.

“This is an exciting time of incredible growth at YVR. We look forward to unveiling some of the projects under our current multi-billion-dollar construction program to address this growth and build the airport of the future,” said Craig Richmond, President & CEO, Vancouver Airport Authority. “We continue to work with our airline partners and entire airport community to position YVR as a world-class connecting hub, providing greater access for people and products to global destinations, all while driving economic benefits for our region.”

The airport’s passenger growth is fuelled by expanded services from its airline partners, including significant continued growth from Air Canada who has chosen YVR as its premier trans-Pacific hub. In 2018, the airline introduced new flights to 10 destinations, including Paris and Zurich, and increased service on five existing routes, including making their popular non-stop service to Delhi year-round. New services such as these are made possible by YVR’s rates and charges program, ConnectYVR. The program provides a highly competitive rate structure and includes rates lower than any other major airport in Canada and competing US airports.

YVR is on track to serve more than 29 million passengers in 2020, with projections indicating the airport will serve 32 million by 2022. To facilitate recent and projected growth, YVR is investing $9.1 billion in its expansion program, which includes 75 major capital improvement projects scheduled over the next 20 years. Once complete, the expansion will enhance the airport experience, improve the speed and ease of passenger and bag movements, and further YVR’s position as a leading international hub.

YVR’s multi-year expansion plans are made possible by its unique, not-for-profit operating model, which ensures all profits generated at YVR are reinvested back into the airport for the benefit of its customers, partners and communities. To learn more about YVR’s unique not-for-profit operation model, please click here.

Passenger Growth Highlights: January – December 2018

> 25.9 million passengers, a 7.3 per cent increase over the same period in 2017

> An 8.5 per cent increase in international traffic

> A 6.1 per cent increase in domestic traffic

> A 5.5 per cent increase in transborder (US) traffic

> YVR moved 338,000 tonnes of cargo, an 8.1 per cent increase from 2017

Traffic growth in the region will generate demand for over 1200 new aircraft

Moscow | November 20, 2018– According to Airbus’ Global Market Forecast, unveiled at the Wings of the Future conference in Moscow, Russia & CIS’s airlines will need some 1220 new aircraft* valued at US$175 billion in the upcoming 20 years (2018-2037). This means that the passenger fleet in the region will almost double from 857 aircraft in service today to over 1700 by 2037. Over the next 20 years, passenger traffic in Russia & CIS region will grow at the average rate of 4.1% annually with Russia being the major contributor to this growth. By 2037 the propensity for air travel in Russia will more than double.

In the Russia & CIS region, in the Small segment typically covering the space where most of today’s single-aisle aircraft compete, there is a requirement for 998 new passenger aircraft; In the Medium segment, for missions requiring additional capacity and range flexibility, represented by smaller widebodies and longer-range single-aisle aircraft, Airbus forecasts demand for 140 passenger aircraft. For additional capacity and range flexibility, in the Large segment where most A350s are present today, there is a need for 39 aircraft. In the Extra-Large segment, typically reflecting high capacity and long range missions by the largest aircraft types including the A350-1000 and the A380, Airbus forecasts demand for 44 passenger aircraft.

Airbus’ GMF foresees that in the next 20 years airlines in the Russia & CIS region will continue to renew their fleets by introducing more new fuel-efficient models, while gradually phasing out previous generation aircraft.  The doubling in the fleet will require over 23,000 new pilots and 27,960 additional technical specialists.

“We see growth in the air transport sector in Russia & CIS. Tourism and business remain the key drivers resulting in an increased demand for new generation and more fuel-efficient aircraft. For over 25 years Airbus has been supporting its Russia & CIS customers in their fleet development needs, offering the most advanced, efficient and comprehensive aircraft family. We look forward to seeing more new Airbus deliveries in the upcoming years, including the A220, our bestselling A320neo Family and the A350,” said Julien Franiatte, Head of Country Russia, Airbus.

The passenger traffic growth in terms of Revenue Passenger Kilometers (RPK) to, from and within the Russia & CIS region is forecast to increase at 4.1% per year on average over the next 20 years. The region’s highest traffic growth is expected to be on international routes to Latin America (+5.9%), Asia-Pacific (+5.4%), Middle East (+5.1 %) and North America (+4.5%).

As of end October 2018, almost 400 single-aisle and widebody aircraft were in operation in Russia & CIS, with over 330 of these in Russia alone.

 

Chicago and São Paulo | July 5, 2018– Boeing (NYSE: BA) and Embraer (B3: EMBR3, NYSE: ERJ) announced they have signed a Memorandum of Understanding to establish a strategic partnership that positions both companies to accelerate growth in global aerospace markets.

The non-binding agreement proposes the formation of a joint venture comprising the commercial aircraft and services business of Embraer that would strategically align with Boeing’s commercial development, production, marketing and lifecycle services operations. Under the terms of the agreement, Boeing will hold an 80 percent ownership stake in the joint venture and Embraer will own the remaining 20 percent stake.

“By forging this strategic partnership, we will be ideally positioned to generate significant value for both companies’ customers, employees and shareholders – and for Brazil and the United States,” said Dennis Muilenburg, Boeing’s Chairman, President and Chief Executive Officer. “This important partnership clearly aligns with Boeing’s long-term strategy of investing in organic growth and returning value to shareholders, complemented by strategic arrangements that enhance and accelerate our growth plans,” Muilenburg said.

“The agreement with Boeing will create the most important strategic partnership in the aerospace industry, strengthening both companies’ leadership in the global market,” said Paulo Cesar de Souza e Silva, Embraer Chief Executive Officer and President. “The business combination with Boeing is expected to create a virtuous cycle for the Brazilian aerospace industry, increasing its sales potential, production, creating jobs and income, investments and exports, and in doing so, adding more value to customers, shareholders and employees.”

The transaction values 100 percent of Embraer’s commercial aircraft operations at $4.75 billion, and contemplates a value of $3.8 billion for Boeing’s 80 percent ownership stake in the joint venture. The proposed partnership is expected to be accretive to Boeing’s earnings per share beginning in 2020 and to generate estimated annual pre-tax cost synergies of approximately $150 million by year three.

The strategic partnership will bring together more than 150 years of combined leadership in aerospace and leverage the two companies’ highly complementary commercial product lines. The partnership is a natural evolution of a long-standing history of collaboration between Boeing and Embraer over more than 20 years.

On finalization, the commercial aviation joint venture will be led by Brazil-based management, including a President and Chief Executive Officer. Boeing will have operational and management control of the new company, which will report directly to Muilenburg.

The joint venture will become one of Boeing’s centers of excellence for end-to-end design, manufacturing, and support of commercial passenger aircraft, and will be fully integrated into Boeing’s broader production and supply chain.

Boeing and the joint venture would be positioned to offer a comprehensive, highly complementary commercial airplane portfolio that ranges from 70 seats to more than 450 seats and freighters, offering best-in-class products and services to better serve the global customer base.

In addition, both companies will create another joint venture to promote and develop new markets and applications for defense products and services, especially the KC-390 multi-mission aircraft, based on jointly-identified opportunities.

“Joint investments in the global marketing of the KC-390, as well as a series of specific agreements in the fields of engineering, research and development and the supply chain, will enhance mutual benefits and further enhance the competitiveness of Boeing and Embraer,” said Nelson Salgado, Embraer’s Executive Vice President, Financial and Investor Relations.

Finalization of the financial and operational details of the strategic partnership and negotiation of definitive transaction agreements are expected to continue in the coming months. Upon execution of these agreements, the transaction would then be subject to shareholder and regulatory approvals, including approval from the Government of Brazil, as well as other customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is expected to close by the end of 2019, 12-18 months after execution of the definitive agreements.

“This strategic partnership is a natural evolution of the long-standing history of collaboration between Boeing and Embraer on a range of aerospace initiatives over almost three decades,” said Greg Smith, Boeing Chief Financial Officer and Executive Vice President of Enterprise Strategy & Performance. “It is aligned with Boeing’s enterprise strategy of pursuing strategic investment opportunities where they demonstrate real value and accelerate our organic growth plans. This partnership will strengthen the vertical capabilities of Boeing and enhance value for our customers through the full lifecycle of industry-leading products and services.”

Boeing and Embraer will benefit from a broader scale, resources and footprint, including global supply chain, sales and marketing, and services network, which will enable them to capture benefits from best-in-class efficiencies across the organizations. Additionally, the strategic partnership will provide opportunities to share best practices in manufacturing and across development programs.

The transaction will have no impact on Boeing and Embraer financial guidance for 2018 or Boeing’s cash deployment strategy and commitment to returning approximately 100 percent of free cash flow to shareholders.

 

  • Leading Aviation Insurance Provider Presents Challenges and Opportunities

Parsippany, New Jersey | November 17, 2016– The drone industry is growing before our eyes in ways that will affect many of our lives and at a speed that will challenge our expectations. Developing a drone program in any size enterprise will involve investment and risk. This is one of the key observations in a new white paper, Sky High Drone Growth Presents Challenges and Opportunities, published this week by Global Aerospace, a leading international aviation and aerospace insurance provider.

“Global Aerospace has a unique awareness of the realities of the Unmanned Aircraft Systems market today,” said white paper author Chris Proudlove, Global Aerospace’s Senior Vice President and Manager of UAS Risks. “We work with a significant number of companies to help them understand best practices and safely utilize this incredible technology, in a way that will foster long-term success.”

The white paper is being made available free of charge, and can be downloaded at: www.global-aero.com/sky-high-drone-growth-presents-challenges-and-opportunities.

For several years, Global Aerospace has provided insurance solutions and guidance to UAS operators from small independent organizations to large, military-grade UAS users. As aviation regulators around the world actively work to establish guidelines for the safe integration of UAS into their national airspace, Global Aerospace is at the forefront of insurance for this new industry, helping manufacturers and operators understand how to improve safety, minimize risk and insure against loss and liability.

Individuals interested in learning more about UAS risk and insurance, or wishing to speak to an unmanned aviation insurance expert can contact Chris Proudlove at (973) 490-8525 or cproudlove@global-aero.com or a member of the UAS underwriting team at unmannedsubmissions@global-aero.com for more information.

Global Aerospace is a leading provider of aerospace insurance with a worldwide portfolio of clients who are engaged in every aspect of the aviation and space industries. Headquartered in London, we have offices in Canada, Cologne, Paris, Zurich and throughout the United States. Across the world we employ over 300 people. With experience dating back to the 1920s, the company’s underwriting is backed by a pool of high quality insurance companies representing some of the most respected names in the business.

For additional information about Global Aerospace, please visit www.global-aero.com. To learn more about the company’s SM4 safety program, please visit sm4.global-aero.com.