By Stella Qiu and David Kirton
ZHUHAI (Reuters) – Western aircraft maintenance, repair and overhaul providers (MROs) signed a flurry of new contracts with Chinese customers and joint-venture partners at the country's biggest air show this week to strengthen their foothold in the lucrative market.
The quick rebound in traffic in China's domestic aviation market to pre-COVID levels, coupled with large declines in other parts of the world, has made China even more important to providers trying to minimise pandemic-driven revenue hits.
"China is key to the future of aerospace because the centre of gravity of passenger traffic is moving east," Kailash Krishnaswamy, general manager at Spirit AeroSystems China, said on the sidelines of Airshow China in Zhuhai after signing a 10-year repair contract with cargo carrier SF Airlines. Spirit was attending the show for the first time.
Consulting firm Oliver Wyman estimates China's MRO market will be 8% larger this year than in 2019, making it one of two regions to surpass pre-pandemic levels, alongside eastern Europe. By 2031, it forecasts the MRO market in China will more than double its pre-COVID size to nearly $20 billion annually.
Honeywell International is a major supplier to Commercial Aircraft Corp of China's (COMAC) C919 narrowbody programme and is bidding for work on the Sino-Russian CR929 widebody, said its China president, Steve Lien.
Such deals give it a foothold for the future when maintenance is needed. Honeywell this week signed a provisional agreement to provide MRO services for its C919 auxiliary power units with the plane's first customer, China Eastern Airlines, and said it expected to sign up other carriers as COMAC ramps up production.
Like Spirit, it also sees strong prospects in the cargo market, which has been growing rapidly with the rise of e-commerce and typically uses older planes that require more maintenance than the latest generation of jets.
"The forecast forward for cargo is very strong," Lien said. "China's cargo capacity is not as mature globally as in the U.S. and Europe. But it is in the national interest to make it mature."
Boeing Co and Guangzhou Aircraft Maintenance Engineering Co Ltd (GAMECO) signed a deal at the show to set up two 767 freighter conversion lines next year.
Chinese airlines will need 8,700 new airplanes through 2040 worth $1.47 trillion at list prices, Boeing said in a forecast last week.
At a time when China is focused increasingly on production of homegrown planes, Boeing China President Sherry Carbary said her company's strength in services was key to giving it a market foothold over the longer term.
"It is the services that actually support that airplane over its life, over the next 20, 30, 40 years," Carbary said. "So it is not a one-time sale. It is a lifetime relationship that is very important to us."
(Reporting by Stella Qiu and David Kirton in Zhuhai; additional reporting and writing by Jamie Freed in Sydney. Editing by Gerry Doyle)
Twenty years ago, just days before the 9/11 attacks on the United States crippled the aerospace industry, Boeing Co moved its headquarters from its historic Seattle manufacturing hub to a stylish downtown Chicago skyscraper. The move was central to Boeing's plan to forge a new identity as a diversified global juggernaut, distancing top executives from the daily operations inside far-flung business units, and getting closer to Wall Street and major customers. Two decades on, in the midst of a fresh crisis shaking the industry, Boeing's corporate hub is in a state of limbo.
Spirit notified workers Wednesday that, because it is a federal contractor, it will require all U.S. employees to be vaccinated.
The pandemic has forced the restaurant industry to deal with challenges from labor shortages to adjusting what's on the menu.
Gas prices are averaging a dollar more than they did last year, roughly $3.25 vs. $2.25—a downside of the reopening. As far back as July, economist Wendy Edelberg forecast Americans would be paying less at the pump. Then, late last month, Federal Reserve Chairman Jerome Powell told lawmakers on Capitol Hill that inflation probably will start heading down in the new year.
MOSCOW (Reuters) -Europe's biggest gas firms say the continent's top supplier Gazprom is fulfilling its long-term contracts yet the Russian energy giant remains at the centre of a dispute about whether it could do more to ease the price pain in a red-hot spot market. The rocketing gas price, with the European benchmark up almost 600% this year, fuelled by low inventories and surging demand in Asia and elsewhere as economies recover from the COVID-19 crisis, has put Gazprom in Europe's crosshairs. The Russian gas export pipeline monopoly, which supplies 35% of European needs, insists it is meeting contracted commitments – which top European clients have confirmed to Reuters.
When he was a child in Avila province, Albert Pascual's father bought 100 pigs, but the company he now leads has more than 9,000 – part of a major expansion that has put Spain on track to take over as the European Union's top pork producer this year. Germany has long topped the table of EU pork producers, but an outbreak of African Swine Fever (ASF) in September 2020 among wild boars meant it lost access to the lucrative Chinese market. That has accelerated a shift in EU production towards ASF-free Spain that was already underway, helped by its less onerous regulations in areas such as planning and use of manure.
Goldman is out with a warning that it could get worse before it gets better in the energy sector.
German growth forecasts may be slashed after manufacturers suffered a plunge in orders during August, economists warned.
Select analysts and investment firms expect these fast-paced stocks to double or nearly triple over the next 12 months.
LONDON/MOSCOW (Reuters) -OPEC+'s decision on Monday to stick with a plan to raise oil output modestly and gradually, despite prices surging to multi-year highs, was partly driven by concern that demand and prices could weaken, sources close to the group told Reuters. After seeing their income slide during the pandemic-induced demand and price collapse in 2020, the OPEC+ oil producers' alliance led by Russia and top exporter Saudi Arabia are enjoying the boost in revenues, three OPEC+ sources said. OPEC+ brought in record production cuts of about 10 million barrels per day (bpd) in April 2020, or about 10% of global output, after restrictions around the world to curb the spread of the coronavirus paralysed oil demand and hit prices hard.
MOSCOW (Reuters) -Russian Deputy Prime Minister Alexander Novak said on Wednesday that certification of the Nord Stream 2 undersea gas pipeline, which expects clearance from a Germany's regulator, could cool soaring European gas prices. Gazprom set up the ESP in 2018 for gas sales to Europe to supplement the existing long and mid-term contracts.
Fresh coronavirus outbreaks in Southeast Asia have hurt factory activity across industries, threatening the region's recovery from the COVID-19 pandemic and disrupting global supplies of goods such as apparels, automobiles, and electronics. Coronavirus curbs have led companies to shut factories and suspend or reduce operations at a time when Asia's manufacturing sector is already grappling with rising raw material costs and signs of a slowing Chinese economy. Vietnam, Malaysia and Thailand are three of the region's major manufacturing hubs and produce goods for some of the world's largest consumer brands.
Unlike in previous years, the U.S. shale patch will not have a large say in where oil prices will be going in the coming months
Data: FactSet; Chart: Axios VisualsA new analysis argues U.S. domestic natural gas prices are no longer untethered from the growth of liquefied natural gas exports.Driving the news: The Center for Strategic and International Studies' Nikos Tsafos points out that for most of the five years since U.S. LNG exports began, there was basically no relation to prices. Get market news worthy of your time with Axios Markets. Subscribe for free.But that's no longer true."In Q3 2021, however, there was stro
The high costs of wholesale gas has collapsed a number of UK energy firms in recent weeks.
U.S. car sales have dipped to levels not seen since the Great Recession as ongoing supply shortages hamper automotive production worldwide, strangling inventories while dealers attempt to salvage whatever revenue they can by increasing margins on the few vehicles they're able to stock. While some have been quick to point fingers at electric vehicles and other high-tech offerings, the shortage hasn't really discriminated. Retail customers stayed home unless they absolutely had to and rental fleet demand plummeted to nearly zero as vacationers and business travelers canceled in droves.
An Air India aircraft gets stuck under a pedestrian footbridge while being transferred outside the New Delhi airport in India.
If the EIA report also shows a build then look for the selling to continue with $76.11 the minimum downside target for December WTI crude oil.
Subsidies that cut fuel prices accounted for 8% of the total, while tax breaks made up another 6%. But the bulk of the benefit to the producers comes with their ability to pass off the costs of pollution- and heat-related illness and deaths.
EOG Resources, Inc. (EOG) today published its 2020 Sustainability Report, highlighting the company's innovative leadership in sustainability and demonstrating its commitment to environmental stewardship, social engagement and corporate governance. The report can be found at www.eogresources.com/sustainability.
By Stella Qiu and David Kirton