Delta pilots want 40% rise
The union representing Delta Air Lines Inc’s pilots wants raises of almost 40 percent compounded over three years, attempting to reverse some of the pay and benefit cuts adopted in the early 2000s. The union cites the carrier’s surging profits in saying it had requested a 22 percent raise for this year, followed by 7 percent raises in the following two years, a memo from the Air Line Pilots Association said. The union and Delta declined to comment on the memo. Delta spokesman Morgan Durrant said the company looks forward to negotiating with the union to reach an agreement that is mutually beneficial.
China Express orders jets
China Express Airlines Co (華夏航空) has placed an order for 10 Bombardier CRJ900 jets worth US$462 million, the Canadian aircraft builder said on Thursday. The order would increase the China Express’ all-Bombardier fleet to 38, a statement said. Based in the southwest city of Chongqing, the nine-year-old carrier serves 62 cities in China. The CRJ900 is a regional jet that seats up to 90 passengers and with the China Express deal, Bombardier has racked up 409 firm orders for the aircraft.
GE to build Saudi plant
General Electric Co (GE) on Thursday said that it had won a contract worth nearly US$1 billion from Saudi Electricity Co to build and supply a power plant in northern Saudi Arabia. Under the contract, the US industrial giant is to build the Waad al-Shamal combined-cycle power plant and provide four advanced gas turbines, a steam turbine and turbine maintenance services. The 1,390-megawatt plant, which is to include solar technology, is expected to be able to provide the equivalent power needed to supply more than 500,000 Saudi homes.
V and D declares bankruptcy
The largest Dutch chain of department stores, US-owned Vroom and Dreesman (V and D), on Thursday declared itself bankrupt after years of losses, but said it expected a buyer to come to its rescue. Founded in 1887 in Amsterdam, the chain employs 10,000 people in 64 outlets. V and D failed to reverse a loss-making trend despite reducing the payroll and cutting wages in recent years. It reported losses of 49 million euros (US$53 million) in 2014, 42 million euros in 2013 and 19 million euros in 2012. A warm winter added to the chain’s problems at the end of this year, causing its winter collection to flop.
Canadian funds set record
Canadian pension funds, money managers and corporations acquired a record-setting US$205 billion in foreign assets last year, driving the nation’s deal total to an eight-year high. In all, there were US$281 billion worth of mergers and acquisitions involving Canadian firms through Wednesday last week, up 34 percent from a year earlier, data compiled by Bloomberg showed. It was the second-highest total on record behind 2007, when Canadians were involved in US$315 billion worth of transactions. The size of the deals involving Canadian firms were also uncharacteristically large last year with the four biggest deals worth in excess of US$10 billion for the first time since 2006, the data showed.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
INCREASING PRESSURE: Pegatron chief financial officer Louise Wu said the merger would allow them to be more flexible when meeting customer needs Pegatron Corp (和碩), an Apple Inc assembly partner, yesterday said that it would fully absorb metal casing subsidiary Casetek Holdings Ltd (鎧勝) in a NT$14.5 billion (US$490.93 million) deal to improve the companies’ competitiveness in the phone assembly supply chain. When Pegatron and Casetek suspended trading earlier in the day, speculation swirled that a possible purchase by China’s Luxshare Precision Industry Co (立訊精密) might be in the cards, but the announcement of the merger dispelled any conjecture. The board of directories of each company agreed that Pegasus Ace Limited, a wholly owned subsidiary of Pegatron, would purchase Casetek in a reverse triangular