Toulouse | May 22, 2019– Airbus has signed  a Memorandum of Understanding (MoU) with SAS Scandinavian Airlines for hybrid and electric aircraft eco-system and infrastructure requirements research.

The MoU was signed by Grazia Vittadini, Chief Technology Officer, Airbus and Göran Jansson, Deputy President EVP Strategy & Ventures, Scandinavian Airlines. Collaboration will start in June 2019 and will continue until the end of 2020.

Under the MoU, Airbus and SAS Scandinavian Airlines will cooperate on a joint research project to enhance understanding of the operational and infrastructure opportunities and challenges involved with the large-scale introduction of hybrid and full electric aircraft to airlines modus operandi. The project scope includes five work packages, which focus on analysing the impact of ground infrastructure and charging on range, resources, time and availability at airports.

The collaboration also includes a plan to involve a renewable energy supplier to ensure genuine zero CO2 emissions operations are assessed. This multidisciplinary approach—from energy to infrastructure—aims to address the entire aircraft operations ecosystem in order to better support the aviation industry’s transition to sustainable energy.

Aircraft are roughly 80% more fuel efficient per passenger kilometer than they were 50 years ago.  However, with air traffic growth estimated to more than double over the next 20 years, reducing aviation’s impact on the environment remains the aim of the industry.

To overcome this challenge, the Global Aviation Industry (ATAG) including Airbus and SAS Scandinavian Airlines have committed to achieving carbon-neutral growth for the aviation industry as a whole from 2020 onwards, cutting aviation net emissions by 50% by 2050 (compared to 2005).

This agreement further strengthens Airbus’ position in a field where it is already investing in and focusing its research efforts on developing hybrid-electric and electric propulsion technologies that promise significant environmental benefits.  Airbus has already started to build a portfolio of technology demonstrators and is currently testing innovative hybrid propulsion systems, subsystems and components in order to address long-term efficiency goals for building and operating electric aircraft.

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.

 

Memorandum of Understanding signals new chapter in partnership
Berlin, Germany | June 1, 2017– Airbus and China have signed a Memorandum of Understanding (MoU) on aviation and aerospace, further enhancing a spirit of cooperation. The MoU was signed in Berlin by Fabrice Brégier, Airbus COO and President of Commercial Aircraft, and He Lifeng, Chairman of the National Development and Reform Commission (NDRC) of China.

The MoU strengthens and deepens mutually beneficial collaboration between Airbus and Chinese aviation industry in various fields. Based on an already established solid foundation, Airbus and China will support the development of engineering skills and technology innovation in China and also promote the integration of Chinese suppliers into Airbus’ global supply chain.

“The success of the industrial cooperation between Airbus and China makes itself a model of high-tech and win-win partnership between China and Europe”, said Fabrice Brégier, Airbus COO and President of Commercial Aircraft. “Together with our Chinese partners, we are confident in meeting the new challenges and opportunities and look forward to an even deeper and broader partnership.”

Co-operation between Airbus and China is already extensive. The Tianjin A330 Family Aircraft Completion and Delivery Centre will deliver its first aircraft in September 2017 and the A320 Family Aircraft Final Assembly Line Asia will start assembly work of A320neo by the end of 2017.

Both sides will continue the development of air transportation activities and to address China’s rapid aviation growth, tackling global issues such as environment and ATM, and broadening the partnership to include sectors like helicopters.

• MOU recognises SwiftBroadband-Safety’s market leading position and potential to increase airline profitability, capacity and safety through digital cockpit solutions

United Kingdom | October 19, 2016– Inmarsat (ISAT.L), the world’s leading provider of global mobile satellite communications, has signed a Memorandum of Understanding (MoU) to appoint SITAONAIR as a distribution partner for its next generation SwiftBroadband-Safety aviation service.

A pre-agreement between the two companies has outlined the intention for SITAONAIR to supply commercial airlines and business aviation operators with SwiftBroadband-Safety, an advanced new service from Inmarsat that will transform cockpit and aircraft operations.

SwiftBroadband-Safety represents a paradigm shift in the advancement of aviation safety services by utilising secure IP-based broadband connectivity that far exceeds the capabilities of other alternatives in the market. The ‘always on and always secure’ solution enables a range of breakthrough aviation applications, including flight data streaming (‘Black Box in the Cloud’) and real-time Electronic Flight Bag applications, such as networked graphical weather.

It also enables air traffic management modernisation programmes throughout the world and fulfils the requirements of the International Civil Aviation Organization (ICAO)’s Global Aeronautical Distress Safety System (GADSS), including flight tracking, by offering reliable and secure satellite surveillance and communications (FANS/ACARS).

SwiftBroadband-Safety hardware is available for initial retrofit installation on existing aircraft today and is scheduled to become a standard option on new aircraft deliveries from 2018. The service builds on Inmarsat’s reputation as a provider of high-quality voice and data service to 95% of the world’s trans-oceanic aircraft fleet.

Inmarsat’s MoU with SITAONAIR marks the latest expansion of a successful partnership between both companies. SITAONAIR is currently a major distributor of Inmarsat’s Classic Aero satellite communications service and will now be able to provide migration options for existing customers to SwiftBroadband-Safety. It also provides the global aviation industry with access to Inmarsat’s current in-flight broadband service, SwiftBroadband, and its next generation offering for commercial airlines (GX Aviation) and business aviation (JetConneX).

SwiftBroadband-Safety has received a lot of industry support that has reinforced its status as the flightdeck communications platform for the future, including its recent selection by Airbus for its A320 and A330 aircraft families, and successful ongoing trials by Hawaiian Airlines.

Frederik van Essen, Inmarsat Aviation’s Senior Vice President of Strategy and Business Development, said: “SITAONAIR has been a trusted partner of Inmarsat for over 25 years. Together we have been providing benefits for the wider airline industry, such as enhancing trans-oceanic flights, optimising routes and reducing fuel consumption. We plan to continue this progress in the future as the benefits of secure broadband are brought into the cockpit.

“The aircraft is now a fully connected node of the airline’s IT network. Inmarsat is the only global provider to offer both reliable, secure cockpit communications as well as the most advanced passenger connectivity, allowing our airline customers to customise data solutions.”
David Lavorel, CEO of SITAONAIR, said: “SwiftBroadband-Safety is a transformational step for the industry and we are proud to include it in our service portfolio as a powerful enabler of SITAONAIR’s nose-to-tail connectivity solutions. Through our engagement with the airlines, SITAONAIR believes the industry is ready to embrace SwiftBroadband-Safety’s secure IP-based services to the cockpit. We are developing services and applications that will leverage this secure IP-based communications services platform to enhance both safety and operational efficiency.

“We aim to offer simple service packages that include generous data allowances to ensure that managing crew communication costs becomes much simpler and enable airlines to fully unleash the potential of next generation cockpit and air traffic control technology. These packages will also power global worldwide flight tracking at no additional connectivity cost. We are pleased to extend and expand our work with Inmarsat in delivering this new capability.”

Farnborough, UK | July 11, 2016– Boeing [NYSE:BA] and Xiamen Airlines announced today at the 2016 Farnborough International Airshow a Memorandum of Understanding for the purchase of up to 30 737 MAX 200 airplanes, valued at up to $3.39 billion at current list prices.

The airline, which is already a 737 MAX customer, sees the MAX 200 as a fit for its low cost subsidiaries, including Jiangxi Airlines and Hebei Airlines.

Both parties will work closely to finalize the agreement, which requires the approval of Xiamen Airlines board and the China Southern Airline Group board, as well as the Chinese Government.

“We are pleased with this new milestone in our relationship with Xiamen Airlines,” said Boeing Commercial Airplanes President and CEO Ray Conner. “The market-leading efficiency and reliability of the 737 MAX 200 will enable Xiamen and its subsidiaries to expand its growing network, while maintaining an optimal fleet. This MOU further demonstrates the strength of our enduring partnership and we look forward to finalizing the deal in the near future.”

Xiamen Airlines currently operates an all-Boeing fleet of more than 140 airplanes including six 787 Dreamliners, 130 Next-Generation 737s and four 757s. The carrier plans to grow its operational fleet to 200 airplanes by the end of the decade and looks to expand regionally with the new 737 MAX.

Xiamen-based Xiamen Airlines is a stated-owned subsidiary of China Southern Airlines.