Tag: Deal

Boeing’s Breakthrough Max Deal Fuels Hope for Travel Rebound

(Bloomberg) — This year’s biggest jetliner deal signals there’s a growing sense of optimism that travel demand will come roaring back from a historic collapse once coronavirus vaccines are widely available.

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Betting that a recovery is on the way, Ryanair Holdings Plc ordered 75 high-density versions of Boeing Co.’s 737 Max in a transaction valued at about $7 billion, said Ryanair Chief Executive Officer Michael O’Leary. As rivals shrink fleets and postpone aircraft purchases, Europe’s largest budget carrier sees an opportunity and is accelerating delivery plans so that it takes all of its 210 Max jets on order by December 2024.

“Travel is going to snap back very strongly,” O’Leary said Thursday in a joint interview with Boeing CEO Dave Calhoun on Bloomberg TV. “This is an order not for next summer. This is for the next five years, the next decade across Europe.”

The deal is a breakthrough for Boeing as it works to bring back the Max after a 20-month grounding prompted by two crashes that killed 346 people. With the plane poised to start flying again after intense scrutiny by global regulators, Ryanair is providing a crucial boost to Boeing’s plans to ramp up work at its 737 factory near Seattle while also starting to clear an inventory of about 450 Max jets that were built during the grounding.

“The forecast for depleting that inventory is roughly a two-year time frame,” Calhoun said. “We are confident that can be done.”

Boeing climbed 1.6% in premarket trading Friday in New York. That added to a 6% surge Thursday that put the stock at its highest price since early March, just before the virus forced nations to seal their borders. Ryanair advanced 4.3% Friday afternoon in Dublin, adding to a 2.7% gain the day before.

Short-Term Weakness

Any airline recovery will come in the wake of an increasingly grim winter travel outlook. As Boeing and Ryanair were touting the coming rebound, Delta Air Lines Inc. warned that it may burn more cash than expected this quarter while Southwest Airlines Co. told more than 6,800 employees that their jobs are at risk in early 2021.

“We all know we’ve got a rough couple of months ahead of us,” Calhoun said. “But that vaccine distribution will change the psychology of the flying public.”

As bookings start to rebound ahead of the summer holiday season in the U.S., “airlines will want to re-establish their leading competitive positions,” he said. “So that usually results in orders.”

Regulators in the U.S., Europe and Brazil have endorsed software revisions and a new pilot training course for Boeing’s best-selling jet. Commercial flights are set to restart next week, with Brazil’s Gol Linhas Aereas Inteligentes SA planning service on Dec. 10. United Airlines Holdings Inc. confirmed that it would take the first post-grounding delivery of the Max.

Ryanair’s commitment gives new sales momentum to Boeing, which had been losing share to rival Airbus SE in the crucial market for single-aisle jets even before the Max

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Travel group TUI strikes deal on third bailout package

FRANKFURT (Reuters) – TUI struck a deal on Wednesday on a third bailout package as the world’s largest holiday company secured help to ride out the coronavirus-linked travel slump.



a sign on the side of a building: FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Stoke-on-Trent


© Reuters/CARL RECINE
FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Stoke-on-Trent

TUI said it has reached an agreement with private investors, banks and the German federal government on an additional financing package worth 1.8 billion euros (1.6 billion pounds). The company received 3 billion in state loans in two tranches earlier this year.

The new rescue package includes a 500 million euros capital increase with subscription rights and a 420 million euro convertible silent participation supplied by Germany’s economic support fund WSF.

The package also includes a non-convertible equity hybrid or silent participation by the WSF of 280 million euros, a state guarantee of 400 million euros, an additional credit facility by state bank KfW of 200 million as well as a prolongation of an existing credit facility by KfW until July 2022.



a person standing in front of a store: FILE PHOTO: People wear face coverings as they stand outside a Tui travel agents shop following the outbreak of the coronavirus disease (COVID-19) in Chester, Britain


© Reuters/PHIL NOBLE
FILE PHOTO: People wear face coverings as they stand outside a Tui travel agents shop following the outbreak of the coronavirus disease (COVID-19) in Chester, Britain

(Reporting by Arno Schuetze, editing by Emma Thomasson)

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Travel Giant TUI Gets Third German Bailout in $2.2 Billion Deal

(Bloomberg) — TUI AG, the world’s biggest tour operator, will receive 1.8 billion euros ($2.2 billion) in bailout funds after securing a third tranche of aid from the German government, together with cash from private investors.



a plane parked on the side of a road: SEATTLE, WA - MAY 31: Boeing 737 MAX airplanes from TUI Airways sit parked in a parking lot at a Boeing facility adjacent to King County International Airport, known as Boeing Field, on May 31, 2019 in Seattle, Washington. Boeing 737 MAX airplanes have been grounded following two fatal crashes in which 346 passengers and crew were killed in October 2018 and March 2019. (Photo by David Ryder/Getty Images)


© Photographer: David Ryder/Getty Images North America
SEATTLE, WA – MAY 31: Boeing 737 MAX airplanes from TUI Airways sit parked in a parking lot at a Boeing facility adjacent to King County International Airport, known as Boeing Field, on May 31, 2019 in Seattle, Washington. Boeing 737 MAX airplanes have been grounded following two fatal crashes in which 346 passengers and crew were killed in October 2018 and March 2019. (Photo by David Ryder/Getty Images)

The funding will comprise 1.3 billion euros from the state, via federal rescue fund WSF and state run KfW bank, together with 500 million euros through a capital increase, Hanover-based TUI said in a statement Wednesday.

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TUI appealed for additional aid after a new wave of virus lockdowns in Europe wiped out a hoped-for surge in late summer travel while stunting bookings for winter getaways and ski breaks. The bailout, which extends rescue funds to 4.8 billion euros, was delayed by a debate over what conditions the state should attach, especially in relation to 8,000 planned job cuts.

Shares of TUI traded 1% higher as of 2:55 p.m. in London, where they have their main listing, paring the decline this year to 46%.

TUI was already Germany’s second-biggest coronavirus-bailout recipient, topped only by Deutsche Lufthansa AG. Companies spanning sportswear producer Adidas AG to forklift maker Kion Group AG have already paid back aid or are in the process of doing so.

While the imminent start of Covid-19 vaccine distribution is positive for TUI, people are booking far later for vacations in response to ever-changing travel curbs, delaying revenue flows. It has also re-booked many customers from the summer just gone, from whom it won’t be getting extra cash.

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Mirae Asset wins U.S. lawsuit against China’s Anbang on scrapped $5.8 billion hotel deal

SEOUL (Reuters) – South Korean investment bank Mirae Asset Daewoo Co Ltd said on Tuesday it won a U.S. court case against Anbang Insurance Group, after Mirae Asset affiliates scrapped a $5.8 billion deal to buy 15 U.S. hotels from Anbang.



a sign on the side of a building: A general view shows the headquarters of Anbang Insurance Group in Beijing


© Reuters/THOMAS PETER
A general view shows the headquarters of Anbang Insurance Group in Beijing

A consortium led by Mirae agreed last year to buy the hotels from Anbang, which had been selling some of its overseas assets after the Chinese government took control of the troubled insurer in 2018.

But the coronavirus pandemic put several deals at risk this year, as the tourism industry was one of the hardest hit by global travel restrictions.

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Anbang had filed a suit saying Mirae Asset affiliates must fulfill their promised payment for the hotels, while Mirae affiliates filed a counterclaim that Anbang return the deposit, pay transaction costs, and related litigation costs, Mirae said in a regulatory filing on Tuesday.

A Delaware court on Monday rejected Anbang’s claims for payment and ruled Anbang should return the deposit and pay expenses of $3.685 million, according to the court document reviewed by Reuters.

Anbang has been liquidated and some of its assets have been revamped into a new entity called Dajia Insurance Group. A Dajia official could not be reached immediately.

Shares in Mirae Asset rose 6% in Seoul on Tuesday.

(Reporting by Joyce Lee; Additional reporting by Cheng Leng in Beijing; Editing by Lincoln Feast.)

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Mirae Asset wins U.S. lawsuit against China’s Anbang on scrapped $5.8 bln hotel deal

By Joyce Lee

SEOUL, Dec 1 (Reuters)South Korean investment bank Mirae Asset Daewoo Co Ltd 006800.KS and affiliates won a U.S. court case against Anbang Insurance Group, a court document showed, after Mirae scrapped a $5.8 billion deal after the start of the pandemic to buy 15 U.S. hotels from Anbang.

The case in Delaware, where many companies are registered, could set a precedent for deals that have seen valuations drop since the COVID-19 pandemic, as buyers no longer want to buy assets under the terms of agreements reached before.

A consortium led by Mirae agreed last year to buy the hotels from Anbang, which had been selling some of its overseas assets after the Chinese government took control of the troubled insurer in 2018.

But Mirae did not close the deal on the scheduled April 2020 date, saying that Anbang’s representations and warranties were inaccurate and failed to satisfy conditions, which led Anbang to file the suit saying Mirae must fulfil its promised payment, the court document showed.

The Delaware Court of Chancery, presided by Vice Chancellor Travis Laster, found that the Anbang company that owns the hotels made extensive changes to its business because of COVID-19, such as employee layoffs, furloughs and closing amenities.

This led to a failure to meet a condition that business be “conducted in the ordinary course of business” and allowed Mirae to terminate the agreement, the court document said.

Mirae said in a regulatory filing on Tuesday that depending on whether the plaintiff appeals, it will respond through its legal representative.

Anbang has been liquidated and some of its assets have been placed in a new entity called Dajia Insurance Group. A Dajia official did not have an immediate response.

Shares in Mirae Asset closed up 6.5% in Seoul on Tuesday.

“Mirae won because Anbang did not meet conditions, but it had wanted to get out of the deal because investors weren’t gathering,” said an analyst, who declined to be identified to protect business relationships.

“The decision does remove short-term risk, although it may have unforeseen adverse effects should Mirae want to do deals in China.”

(Reporting by Joyce Lee; Additional reporting by Cheng Leng in Beijing; Editing by Lincoln Feast and Barbara Lewis.)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Mirae Asset Wins U.S. Lawsuit Against China’s Anbang on Scrapped $5.8 Billion Hotel Deal | Investing News

SEOUL (Reuters) – South Korean investment bank Mirae Asset Daewoo Co Ltd said on Tuesday it won a U.S. court case against Anbang Insurance Group, after Mirae Asset affiliates scrapped a $5.8 billion deal to buy 15 U.S. hotels from Anbang.

A consortium led by Mirae agreed last year to buy the hotels from Anbang, which had been selling some of its overseas assets after the Chinese government took control of the troubled insurer in 2018.

But the coronavirus pandemic put several deals at risk this year, as the tourism industry was one of the hardest hit by global travel restrictions.

Anbang had filed a suit saying Mirae Asset affiliates must fulfill their promised payment for the hotels, while Mirae affiliates filed a counterclaim that Anbang return the deposit, pay transaction costs, and related litigation costs, Mirae said in a regulatory filing on Tuesday.

A Delaware court on Monday rejected Anbang’s claims for payment and ruled Anbang should return the deposit and pay expenses of $3.685 million, according to the court document reviewed by Reuters.

Anbang has been liquidated and some of its assets have been revamped into a new entity called Dajia Insurance Group. A Dajia official could not be reached immediately.

Shares in Mirae Asset rose 6% in Seoul on Tuesday.

(Reporting by Joyce Lee; Additional reporting by Cheng Leng in Beijing; Editing by Lincoln Feast.)

Copyright 2020 Thomson Reuters.

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Mirae Properly Canceled $5.8 Billion Hotel Deal, Judge Says

(Bloomberg) — Mirae Global Asset Investment Co. properly canceled its purchase of 15 U.S. luxury hotels from Dajia Insurance Company, a judge concluded in one of the largest deals this year affected by the fallout from the Covid-19 pandemic.



a person holding a sign: Employees of Mirae Asset Investment Management Co. walk past the company's logo in Seoul, South Korea, on Monday, Feb. 18, 2008. Mirae Asset Investments Co., South Korea's biggest fund manager, is taking advantage of the cheapest prices since 2006 to move cash into shares of companies that will benefit from a weaker won and closer ties to China.


© BLOOMBERG NEWS
Employees of Mirae Asset Investment Management Co. walk past the company’s logo in Seoul, South Korea, on Monday, Feb. 18, 2008. Mirae Asset Investments Co., South Korea’s biggest fund manager, is taking advantage of the cheapest prices since 2006 to move cash into shares of companies that will benefit from a weaker won and closer ties to China.

China-based Dajia didn’t meet all the conditions for closing the sale of the hotels, which included iconic properties such as the Westin St. Francis in San Francisco and the Loews Santa Monica Beach Hotel, Delaware Chancery Court Judge Travis Laster ruled Monday.

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Dajia, which assumed the assets of struggling Chinese insurer Anbang Insurance Group Co., failed to operate the hotels in an “ordinary manner,” as required by the terms of the deal, while struggling to cope with the U.S.’s coronavirus outbreak, Laster ruled.

The ruling may have consequences for other busted-deal cases tied to business shutdowns and changes caused by the virus’s worldwide reach. The value of many transactions were affected by the drop in travel and other factors due to the pandemic.

Read More: Who is ‘Andy Bang’? A Ritz-Carlton Mystery Gets Its Day in Court

The judge also said Dajia was responsible for returning Mirae Global’s deposit and covering the South Korean firm’s legal expenses — costs that could run in the tens of millions of dollars.

Laster’s finding that Mirae Global “was justified in terminating the Anbang transaction” was a just outcome, Michael Carlinsky, one of the company’s lawyers, said in an emailed statement. Representatives of China-based Dajia didn’t have an immediate comment on the ruling.

The buyout was among almost a dozen transactions that have fallen apart this year as valuations cratered on government-enacted lock downs. At one point, a half-dozen such cases were before Delaware judges.

Some, including a fight between Tiffany & Co. and French clothier LVMH, settled. Tiffany sued to force LVHM to consummate a $16 billion buyout that the French company said was fatally impacted by the virus. The jeweler agreed to sell itself at a slightly reduced price.

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The hotel-deal case is AB Stable VIII LLC v. MAPS Hotel and Resorts One LLC, No. 2020-0310, Delaware Chancery Court (Wilmington).

(Updates with Mirae Global comment in sixth paragraph)

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

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How to get a Black Friday travel deal during the pandemic

You can plan your next great escape, even in turbulent travel times. 

Hotels and cruise lines are offering Black Friday deals after the travel industry took a major blow during coronavirus shutdowns earlier this year. 

More hotels and travel booking companies are offering deals up to 75% on Black Friday with free cancelllations during COVID-19. (iStock). 

More hotels and travel booking companies are offering deals up to 75% on Black Friday with free cancelllations during COVID-19. (iStock). 

A number of budget booking websites are slashing prices of hotels and resorts across the United States and in the Caribbean. And with flexible cancellation policies during the pandemic with the uncertainty of travel restrictions amid spiking cases, experts say there’s no financial risk to booking now, even if you have to back out later. 

“Make sure to prioritize flexibility alongside price this year. Look for airline and lodging deals that have waived change and cancellation fees, should plans change,” Kelly Soderlund, a travel trends expert with travel app TripIt, tells Fox.

“Many travel providers are offering credits instead of refunds, so determine a backup plan if the trip is canceled. The financial implications of travel credits could impact the when and where of an alternative trip,” Soderlund adds. 

BLACK FRIDAY 2020: HOW TO AVOID GETTING SCAMMED 

Here are some of the smartest ways to save: 

Domestic getaways 

Budget travel booking website Expedia is expanding its sale to run five extra days this year through Dec. 1 with options like free cancellation should plans change during these uncertain times. 

The e-commerce travel platform is offering 50% off select stays and an extra 12% off select hotels and activities. The site is also alerting users to properties with enhanced cleaning protocols and free cancellation options during the pandemic. 

Luxury hotels in New York City, Miami, Orlando, Los Angeles and Las Vegas are being discounted by up to 75% off. 

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Marriott is now also offering up to 20% off stays at more than 5,000 hotels and 25% off to its Bonvoy members. The hotel chain will also give 15% off e-gift cards for future travel beginning Nov. 30 through Dec. 1 for those hesitant to commit to booking during the pandemic. 

“Check local travel restrictions and health and safety guidelines for each destination you have in mind, especially as states and countries issue localized restrictions,” Soderlund advises, adding: “It’s also a good idea to arm yourself with a plan upon arrival should anything unexpected happen after your trip has begun.” 

Beach bound international travel

CheapCarribbean.com, a site that helps users book affordable getaways in destinations like the Dominican Republic, St. Lucia, the Bahamas and Mexico, is offering up to 75% off more than 600 of its properties with beach vacations starting as low as $249.

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One deal includes a three-night stay at an all-inclusive Cancun resort priced at $405 per person including airfare at the four-star Sunscape Akumal Beach Resort and Spa. 

Cruise control 

Those itching to hit the high seas again when safe may consider a $500 credit

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Philly undoes deal with developer Peebles to revamp historic Family Court building into luxury hotel

Philadelphia officials have broken off an agreement to sell the historic Family Court building on the Benjamin Franklin Parkway to Peebles Corp. for the developer to revamp into a 203-room luxury hotel, as the coronavirus pandemic clouds the demand outlook for visitor accommodations in the city.



a large building by a road: The old Family Court building at 1801 Vine St. in Center City. Philadelphia officials have terminated developer Peebles Corp.’s deal to revamp the historic Family Court building.


© ALEJANDRO A. ALVAREZ/The Philadelphia Inquirer/TNS
The old Family Court building at 1801 Vine St. in Center City. Philadelphia officials have terminated developer Peebles Corp.’s deal to revamp the historic Family Court building.

The Philadelphia Industrial Development Corp. said that it had “coordinated with the city and concluded that we will formally terminate the agreement” to purchase and redevelop building at 1801 Vine St., across from Logan Square, according to an email the agency sent last week to Christopher Leng Smith, Peebles’ managing director for the northeast U.S.

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The decision was made “in consideration of the impact of COVID on the hospitality market,” Sam Rhoads, a PIDC executive vice president, wrote to Smith in the email, which was provided to The Inquirer.

The move underscores the uncertainty surrounding the hotel industry and other categories of commercial real estate, with the long-term impact of the pandemic on everything from office use to convention businesses yet to play out.

“Nobody really knows what the landscape is going to look like post-pandemic,” said Christophe Terlizzi, who heads KeyBank’s commercial real estate practice in the region. “It’s unknown and it’s unknowable.”

Although hotel performance has ticked up since the early days of the pandemic, when business travel and tourism came to a virtual halt, the sector continues to struggle.

Occupancy at hotels in Philadelphia and the surrounding Pennsylvania and South Jersey counties remained depressed at 46% during the week ended Nov. 14, down from 74% during the same week a year ago, according to the hospitality-industry tracker STR Inc.

Revenue per available room, a standard metric used in the hospitality industry to gauge hotel performance, fell 61%, from $110.53 to $42.75, during that time.

With vaccinations against the coronavirus expected to reach the market in the months to come, some see a resumption of more commercial activity on the city’s horizon. Yet, it’s uncertain how long some sectors, such as hospitality, will take to return to pre-pandemic levels, if they ever do.

Workers who have gotten used to discussing business with associates around the world using teleconferencing software such as Zoom may be less likely than before to take expensive and time-consuming business trips or attend costly conventions, some have speculated.

And Center City may become less of a destination for whatever business travel remains if companies continue allowing employees to work from home, or if a new demand for less densely filled offices prompts a move to the suburbs where space is cheaper, others fear.

“In 2020, the immense adverse impact to the hospitality industry caused by the COVID-19 novel coronavirus created significant changes in market dynamics that impacted viability of hospitality development across the nation,” PIDC president Anne Bovaird Nevins said in an email

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Early Chicco Bravo Travel System, Keyfit 30 & More Deals Rated by Deal Tomato

Save on a wide range of Chicco deals at the early Black Friday sale, together with Chicco Keyfit 30 car seat and base, Bravo Travel System, and Nextfit convertible car seat sales

Here’s our round-up of the best early Chicco deals for Black Friday, together with all the best discounts on Chicco Bravo Travel Systems, Nextfit Zip and Sport convertible car seats, and Keyfit 30 car seat and car seat bases. Links to the latest deals are listed below.

Best Chicco Deals:

  • Save up to 42% off on travel systems, carriers, sterilizers, and more from Chicco at Walmart – see the latest discounts on a wide variety of Chicco infant car seats, strollers, food warmers, and modular sterilizers

  • Save on Chicco travel systems, portable bassinets, hook-on chairs, and more at Amazon – click the link to see live prices on top-rated baby safety car seats, travel gear, and more

  • Save on top-rated Chicco baby safety car seats, travel systems at buybuyBABY.com – check live prices on Chicco KeyFit 30 Infant Car Seat, Chicco Fit 4-in-1 Convertible Car Seat, and more

  • Save up to 32% off on top-rated Chicco travel systems at Walmart – check the latest deals on travel system models, including Chicco Mini Bravo, Chicco Activ3 Jogging, Chicco Bravo Trio, and more

  • Save up to $70 off on best-selling Chicco KeyFit series car seats at Walmart – click the link for the latest deals on Chicco KeyFit series car seats, including the Onyx, Regatta, Q Collection, and more

  • Save up to $90 off on car seats from the Chicco NextFit series at Walmart – check the latest savings on top-rated Chicco NextFit convertible car seats

Best Baby Deals:

  • Save up to 50% off on a wide selection of baby gear at Walmart – find the latest deals on car seats, strollers, bassinets, activity centers, bouncers & rockers, carriers, playmats, and more

  • Save up to 40% on baby gear including car seats, strollers, clothing & essentials at Amazon – check live prices on clothing, bedding, baby care items and accessories

  • Save up to $100 on baby strollers, car seats, cribs & more at buybuyBABY.com – including deals on Fisher Price, Carter’s and Disney

  • Save on a wide range of Burt’s Bees baby items at BurtsBees.com – click the link for latest deals on baby ointment, lotion, creams, and bath bundles from Burt’s Bees

  • Save up to $20 on baby swings, bassinets, playards & more at 4moms.com – click the link to see the latest prices on baby stuff like the mamaRoo4, rockaRoo, mamaRoo sleep bassinet, and more

Looking for more deals? Click here to browse the full selection of deals at Walmart’s Black Friday Deals for Days sales event and click here to see Amazon’s latest Black Friday-worthy deals. Deal Tomato earns commissions from purchases made using the links provided.

Chicco is one of the leading car seat brands in the market today. Chicco car seats are trusted by parents worldwide because of its innovative design that prioritizes

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