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Boeing scraps 2019 financial forecast, halts share buybacks in wake of 737 MAX disaster

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World’s biggest aerospace corporation was forced to pull its full financial forecast for the current year due to unresolved issues surrounding Boeing’s once best-selling 737 MAX aircraft.

Boeing also announced plans to pause share buybacks, citing “a challenging time for our customers, stakeholders and the company.”

“Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public,” Boeing Chairman and CEO Dennis Muilenburg said in a statement.

The manufacturer had previously posted a report on the first-quarter earnings that managed to fall in line with analysts’ expectations, while its revenue was slightly less than projected. Boeing’s earning per share totaled the expected $3.16 from January through March, while the revenue amounted to $22.92 billion against $22.98 billion forecasted by London-based provider of financial markets data Refinitiv.

Boeing stressed that the previous guidance didn’t reflect the impact of two crashes of the company’s flagship planes, leading to the grounding of all 737 MAX 8 jets by global regulators, lawsuits from some air carriers and a decline in market value.

According to the producer, more than 135 test and production flights of updated software for the 737 MAX have been carried out so far.

Boeing’s bestseller crashed on March 10 not far from the Ethiopian capital of Addis Ababa six minutes after takeoff on the way to Nairobi, Kenya. The tragedy, which killed 157 people, marked the second crash involving the same jet model in less than six months. In October, the same type of aircraft, operated by Indonesia’s Lion Air, crashed in the Java Sea shortly after takeoff, claiming the lives of 189 people.

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Hawaii hotels: Flat average daily rate, lower occupancy so far in 2019

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For the first three months of 2019, Hawaii hotels statewide reported flat average daily rate (ADR) and lower occupancy, which resulted in lower revenue per available room (RevPAR) compared to the first quarter of 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $236 (-3.3%), with ADR of $292 and occupancy of 80.8 percent (-2.7 percentage points) in the first quarter of 2019.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

For the first quarter, Hawaii hotel room revenues fell by 4.7 percent to $1.13 billion compared to the $1.18 billion earned in the first quarter of 2018. There were more than 74,300 fewer available room nights (-1.5%) in the first quarter and approximately 190,500 fewer occupied room nights (-4.7%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first quarter.

All classes of Hawaii hotel properties statewide reported RevPAR declines in the first quarter of 2019 except Upper Midscale Class properties ($134, +0.6%). Luxury Class properties reported RevPAR of $452 (-5.4%) with ADR of $594 (-1.2%) and occupancy of 76.1 percent (-3.3 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $155 (-5.0%) with ADR of $187 (-0.5%) and occupancy of 83.1 percent (-3.9 percentage points).

Comparison to Top U.S. Markets

In comparison to top U.S. markets, the Hawaiian Islands earned the highest RevPAR at $236 in the first quarter, followed by the San Francisco/San Mateo market at $210 (+15.9%) and the Miami/Hialeah market at $208 (-3.5%). Hawaii also led the U.S. markets in ADR at $292 followed by San Francisco/San Mateo and Miami/Hialeah. The Hawaiian Islands ranked fifth for occupancy at 80.8 percent, with Miami/Hialeah topping the list at 83.0 percent (-2.1 percentage points).

Hotel Results for Hawaii’s Four Counties

Hotel properties in Hawaii’s four island counties all reported RevPAR decreases in the first quarter of 2019. Maui County hotels led the state overall in RevPAR at $337 (-2.7%), with ADR at $428 (-0.9%) and occupancy at 78.6 percent (-1.5 percentage points).

Kauai hotels earned RevPAR of $228 (-10.2%), with flat ADR at $305 (+0.2%) and lower occupancy of 74.8 percent (-8.7 percentage points).

Hotels on the island of Hawaii reported a decline in RevPAR to $225 (-9.7%), due to a combination of decreases in both ADR ($285, -2.0%) and occupancy (79.1%, -6.7 percentage points).

Oahu hotels earned slightly lower RevPAR at $196 (-0.9%), with ADR at $236 (+0.8%) and occupancy of 83.0 percent (-1.4 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were in the middle of the pack for RevPAR in the first quarter of 2019. Hotels in the Maldives ranked highest in RevPAR at $575 (+4.5%) followed by Aruba at $351 (+11.2%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranking sixth, seventh and eighth, respectively.

The Maldives also led in ADR at $737 (+5.2%) in the first quarter, followed by French Polynesia at $497 (-1.1%). Maui County ranked fifth, followed by Kauai and the island of Hawaii. Oahu ranked ninth .

Oahu trailed Phuket (84.5%, -6.3 percentage points) in occupancy for sun and sea destinations in the first quarter. The island of Hawaii, Maui County and Kauai ranked fourth, fifth and ninth, respectively.

March 2019 Hotel Performance

In March 2019, RevPAR for Hawaii hotels statewide declined to $227 (-4.3%), with ADR of $285 (-1.1%) and occupancy of 79.6 percent (-2.7 percentage points).

In March, Hawaii hotel room revenues fell by 5.9 percent to $373.3 million. There were more than 27,200 fewer available room nights (-1.6%) in March and approximately 66,850 fewer occupied room nights (-4.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during March. However, the number of rooms out of service may be under-reported.

All classes of Hawaii hotel properties statewide reported RevPAR declines in March. Luxury Class properties reported RevPAR of $443 (-7.2%) with ADR of $583 (-3.1%) and occupancy of 75.9 percent (-3.4 percentage points). Midscale & Economy Class hotels reported RevPAR of $150 (-2.9%) with ADR of $182 (+0.8%) and occupancy of 82.0 percent (-3.1 percentage points).

Hotel properties in Hawaii’s four island counties all reported lower RevPAR for March. Maui County hotels reported the highest RevPAR in March at $336 (-1.4%) with ADR of $421 (-1.6%) and flat occupancy (79.8%, +0.2 percentage points).

Oahu hotels reported lower occupancy (80.4%, -2.3 percentage points) and flat ADR ($230, -0.2%) for March.

Hotels on the island of Hawaii continued to face challenges in March, with RevPAR dropping 11.2 percent to $216, ADR to $272 (-4.9%) and occupancy to 79.2 percent (-5.7 percentage points).

RevPAR for Kauai hotels fell to $213 (-14.6%) in March, with declines in both ADR to $286 (-4.5%) and occupancy to 74.4 percent (-8.8 percentage points).

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Barbican beefs up sales team

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The Barbican, a conference and international arts venue located in London, has appointed Jenny Waller as head of sales. The expanded role will see Jenny managing the growing sales team, which includes a renewed focus on international and association markets. Jenny will be supported in her role by the newly-appointed deputy head of sales, Charlie Smith.

Jenny has been promoted from the role of senior account manager within the Barbican team, where she has already achieved a number of significant wins for the world-leading arts and conference venue. These include major corporate and association events due to take place over the coming 24 months. Prior to working at the Barbican Jenny spent four years developing industry knowledge and expertise at Park Plaza Hotels.

Charlie returns to the Barbican, where he worked as an account manager for two years between 2016 and 2018. Other experience includes time developing sales skills at both Dreamland and HMS President.

“The Barbican is going from strength to strength,” commented Jackie Boughton, head of business events at the Barbican. “Last year we opened and showcased our new cinema offering, comprised of two cinemas and supporting food and beverage, as well as exhibition or networking space capable of seating up to 150 for conferences, meetings and private screenings. When added to our wider offering it makes the Barbican one of Europe’s most comprehensive venues. This in turn has led to an increase in both association and international bookings. Jenny has been instrumental in that success over the last year and was therefore the perfect choice to take on the demanding role leading our sales team. It is also a real pleasure to welcome Charlie back to the team – his in-depth knowledge of the venue is already having a significant impact on new business development.”

Jenny responded by saying: “This is a new and exciting challenge for me. Over the course of the next year I am particularly looking forward to working alongside our association specialists as we develop that market, whilst supporting our work with a strong presence at major international trade shows and events. The UK of course remains our core market and we are delighted by the ongoing support we receive from domestic clients booking direct or via our agency partners. However, there is still significant opportunity for us to develop internationally – particularly given our ability to partner with the Barbican International Enterprises team to deliver truly inspiring content and theming. The addition of Charlie to the team ensures we have the ongoing experience and depth of knowledge needed to deliver to the highest standards for our clients.”

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Air Seychelles gets ready for delivery of their first Airbus A320NEO

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Air Seychelles has over the past few months started to implement its training calendar in preparation for the delivery of the A320neo set for July 2019.

Last week, key staff members from the Technical Operations and Project Management including the Flight Operations team, as well as representatives from the Seychelles Civil Aviation Authority, attended the A320neo general familiarization training held in-house at the Air Seychelles head office in Pointe Larue.

The training held over four days, delivered by Mr. Michael Mahn, an experienced engineer from Airbus, provided the participants a general overview of the airframe that is the whole mechanical structure of the new aircraft. Currently another batch of staff members from similar areas within the business are also taking part in the training which commenced on Monday, April 15, and lasted until Thursday, April 18, 2019.

During the month of February, the Airbus Hamburg Training Centre welcomed the first group of Air Seychelles aircraft engineers as part of its comprehensive A320neo training program. The agenda composed of both theory and on-the-job experience provided the technical operations team further knowledge on how to conduct maintenance on the A320neo besides having the chance to view the Airbus assembly line.

Held from Monday, February 18, until Wednesday, February 27, the sessions in Hamburg were attended by engineers Clyne De -Letourdis, David Saminaden, and Denys Assan.

In addition to that, as of Tuesday, February 5, until Thursday, February 7, Manager of Cabin Safety Standards, Magdalena Hubert, and Manager for Cabin Safety Training Programs, Dereck Charlette, also had the chance to participate in the Airbus A320neo safety training held at the Airbus Training Centre Europe in Toulouse.

The training will proceed over the next upcoming months as part of the entry into service program of the new Air Seychelles A320neo aircraft.

The Seychelles Civil Aviation Authority in the meantime is progressing the type approval of this new aircraft which had not been registered in the Seychelles before and, therefore, requires additional regulatory approvals and licensing measures.

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Thomas Cook selling its travel business: Chinese investment fund interested

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Thomas Cook is the world’s oldest tour operator and was founded in Market Harborough in 1841 by businessman Thomas Cook. It started off with organized railway outings for members of the local temperance movement.

The travel company received approaches for parts of its business and the company as a whole, according to reports. The business put its airline up for sale in February and it said last month it would close 21 stores across the country and cut more than 300 jobs.

Chinese investment firm Fosun International could be a bidder for the company’s tour operating business, which runs a joint venture with Thomas Cook in China. It could be months before any formal offer is lodged, and there is no guarantee one will be made.

Thomas Cook now has annual sales of £9bn, 19 million customers a year and 22,000 staff operating in 16 countries.

In September, Thomas Cook said profits would be hit after the summer heat wave saw many take their holidays in the UK. It issued a second profit warning in November, when it said winter bookings were also down.

The shop closures will take the number of Thomas Cook outlets down to 566. It said a consultation with staff and unions had begun.

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