Frontier Airlines (2nd) (Denver) today announced two new nonstop destinations from Orlando, Florida (MCO), bringing the carrier’s nonstop destinations served from Orlando to 13. Nonstop flights to both Columbia, Missouri (COU) and Shenandoah Valley, Virginia (SHD) will begin on November 20, 2012.
Is Frontier taking a page out of Allegiant’s book of serving vacation markets (like Orlando) from smaller underserved markets like Columbia and Shenandoah Valley? It is a departure from the past of serving mainly the biggest markets from its Denver hub.
With Allegiant now adding Airbus A319s in the future, is Frontier making itself into a potential future acquisition for Allegiant?
Orlando-Columbia (beginning Nov. 20, 2012)
|MCO-COU||1:50 p.m.||3:35 p.m.||Tues||A319|
|COU-MCO||4:15 p.m.||7:35 p.m.||Tues||A319|
|MCO-COU||8:00 a.m.||9:45 a.m.||Sat||A319|
|COU-MCO||10:25 a.m.||1:45 p.m.||Sat||A319|
Orlando-Shenandoah (beginning Nov. 20, 2012)
|MCO-SHD||7:30 a.m.||9:25 a.m.||Tues/Thurs||A319|
|SHD-MCO||10:05 a.m.||12:10 p.m.||Tues/Thurs||A319|
|MCO-SHD||7:00 a.m.||8:55 a.m.||Sun||A319|
|SHD-MCO||9:35 a.m.||11:40 a.m.||Sun||A319|
The new service will operate on 138-seat Airbus A319 aircraft.
Copyright Photo: Michael B. Ing. Approaching Los Angeles is Frontier’s Airbus A319-112 N948FR (msn 2836). N948FR displays the image of Pete, the Pelican on the tail.
SunExpress Airlines (Germany) (Frankfurt) will launch a new route from Frankfurt to Casablanca (Morocco) starting on October 28, 2012 per Airline Route. The new route will be operated three days a week.
Copyright Photo: Felix Gottwald. Boeing 737-8CX D-ASXE (msn 32365) flies through the early morning mist at Frankfurt.
British Airways (London) will start nonstop London (Gatwick)-Colombo (Sri Lanka) flights starting on March 31, 2013. The route will be operated three days a week and flown with Boeing 777-200 ERs.
Copyright Photo: Rolf Wallner. Boeing 77-236 ER G-YMMT (msn 36518) completes its final approach into London (Heathrow).
Icelandair reports a second quarter net profit of $14.3 million, considers acquiring additional aircraft types
Icelandair Group (Icelandair) (Keflavik) reported a second quarter net profit of $14.3 million.
In addition, in its report, the group stated it is looking at its fleet options with a long-term fleet strategy. Here is the official statement:
TWO OPTIONS CURRENTLY UNDER CONSIDERATION
- | Work in progress on a long-term strategy for Icelandair Group’s fleet
- | The work done in close co-operation with the manufacturers Boeing and Airbus
- | Other aircraft manufacturer are also being monitored
- | A decision on the future fleet will be made in near future
- | Options being evaluated:
Option 1: Single fleet of Boeing 757 aircraft until 2022
Option 2: Mixed fleet of Boeing 757 and smaller aircraft
Read the full report: CLICK HERE
Copyright Photo: Keith Burton. Besides utilizing its Boeing 757 fleet for scheduled passenger and charter operations, the flag carrier also operates the Boeing 757 as a freighter. Icelandair Cargo Boeing 757-23A PCF TF-FIG (msn 24456) climbs away from Southend with its additional “Absolutely Fresh” titles and logo for its fish-hauling operations.
American Airlines (Dallas/Fort Worth) through the bankrupt AMR Corporation has received a setback in its efforts to impose a lower cost base contract for its pilots, represented by the Allied Pilots Association (APA). According to this report by Reuters, the bankruptcy court judge Sean Lane has denied management’s request to void the current collective bargaining contract with the pilots. Previously the pilots rejected an interim contract that would have lowered wages and benefits.
APA sees this ruling as a victory. AMR can now amend the motion or go back to the negotiating table with the union.
Read the full report: CLICK HERE
Copyright Photo: Michael B. Ing. Boeing 737-823 N973AN (msn 29548) climbs away from the runway at Los Angeles International Airport (LAX).
Air Onix Airlines (Simferopol, Ukraine) is planning to expand to Istanbul from Simferopol starting on September 11 with twice-weekly service. The new airline launched scheduled passenger operations on April 28, 2012 from Simferopol to Kiev (Zhuliany Airport) with Boeing 737s. Today it currently flies scheduled flights to Kiev (both airports), Lviv, Moscow (Domodedovo), St. Petersburg and Warsaw.
Copyright Photo: Andi Hiltl. Boeing 737-33R UR-KRA (msn 28873) arrives in Antalya, Turkey, one of the charter destinations.
Qatar Airways (Doha) has announced an expansion of its USA route network with the introduction of daily passenger flights to Chicago (O’Hare) from April 10, 2013.
The nonstop service from Doha, capital of the State of Qatar, will be Qatar Airways’ fourth USA gateway, following its daily operations to New York (JFK), Washington (IAD) and Houston (IAH).
The carrier, which already operates twice-weekly cargo flights to Chicago O’Hare, will use its flagship long-haul Boeing 777-300 ER (Extended Range) passenger aircraft on the Doha – Chicago route with an approximate flying time of 15 hours.
Copyright Photo: Nick Dean. Boeing 777-3DZ ER A7-BAH (msn 37662) climbs away from Paine Field near Everett.
Frontier Airlines (2nd) (Denver) today announced new nonstop service between its Denver, Colorado (DEN), hub and Minot, North Dakota (MOT), with four weekly nonstop flights beginning on November 5, 2012.
Following is the schedule for Frontier’s Minot service:
Denver-MOT (beginning Nov. 5, 2012)
|DEN-MOT||11:25 a.m.||2:05 p.m.||Mon/Wed/Fri/Sun||E190|
|MOT-DEN||2:35 p.m.||3:35 p.m.||Mon/Wed/Fri/Sun||E190|
This new service will operate on 99-seat Embraer ER 190 aircraft operated by Republic Airlines (2nd).
In other news, the airline announced its new nonstop service between Fargo, North Dakota (FAR) and Denver, Colorado (DEN) will be starting service a week earlier than originally announced last week. Nonstop service between Denver and Fargo with three weekly nonstop flights will now begin on November 9, 2012.
Copyright Photo: Brian McDonough. Embraer ERJ 190-100 IGW N161HL (msn 19000154) with Clover, the Fawn, arrives at Washington (Reagan National).
LATAM Airlines Group S.A. (LAN Airlines and TAM Linhas Aereas) (Santiago) has announced a second quarter net profit of $49.7 million. This is the first financial report for the group. Here is the full statement.
“LATAM Airlines Group has announced its consolidated financial results for the second quarter and for the six months ended June 30, 2012. “LATAM” or “the Company” makes reference to the consolidated entity, which includes passenger and cargo airlines in Latin America. All figures were prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in U.S Dollars, except for TAM S.A. (“TAM”) second quarter 2012 Income Statement figures, which are expressed in Brazilian reais.
- LATAM Airlines Group S.A. today reported its first consolidated financial results for the second quarter and first half of 2012, following the successful completion of the exchange offer and mergers that combined the businesses of LAN Airlines S.A. and TAM S.A. (“TAM”). Because the transaction was completed on June 22, 2012, results for the period ended June 30, 2012 include the last eight days of TAM results, from June 23 to June 30, 2012.
- Net income of LATAM Airlines Group reached US$49.7 million in the second quarter 2012. Operating income reached US$23.2 million, resulting in a 1.5% operating margin for the second quarter 2012. Consolidated LATAM results include net income of US$46.3 million and an operating loss of US$13.9 million corresponding to the eight days of consolidation of TAM between June 23 and June 30, 2012. Non-operating results for this eight day period reflect a foreign exchange gain of US$57,4 million and a positive mark-to-market of fuel hedging derivatives in the amount of US$ 26,7 million, as a result of the appreciation of the Brazilian real and an increase in the price of fuel, respectively, during the last eight days of the quarter.
- The second quarter 2012 presented a challenging environment due to reduced cargo demand and the depreciation of local currencies, especially the Brazilian real. However, passenger demand in most of Latin America remains solid and the successful completion of the business combination between LAN and TAM provides the Company with a more diversified revenue base and significant growth and synergy opportunities. Furthermore, the domestic Brazil market has shown sustained capacity discipline, providing the basis for improved profitability.
- LATAM Airlines Group is advancing in the process of achieving the expected synergies from the business combination with TAM. Regarding its international passenger operations, the Company has established fare combinability between LAN and TAM, cross selling of LAN and TAM flights, and code shares on various international routes, such as Santiago – Orlando, Santiago – Madrid, and Santiago – London. Cross selling will assist the Company in capturing connectivity synergies by offering our customers a single network in a one- stop shop.
- In July 2012, the cargo divisions of LAN and TAM were integrated, taking advantage of the highly complementary nature of their operations.
- On September 4, 2012, LATAM Airlines Group will hold an Extraordinary Shareholders’ Meeting in order to reelect the Board of Directors of the Company, as well as to approve the placement, through a preemptive rights offering to LATAM shareholders, of the remaining 7,436,816 shares of the Company that were authorized for the TAM exchange offer, and that were not exchanged.
LATAM Airlines Group S.A. 2Q12
- During the remainder of 2012, LATAM expects to receive 12 Airbus A320 family aircraft to operate domestic and regional routes, as well as 8 Boeing 767-300, 4 Boeing 777-300 and the first 3 Boeing 787-8 Dreamliners for long- haul routes. The Company will also take delivery of 2 Boeing 777 freighter aircraft.
- LAN Airlines S.A. (renamed LATAM Airlines Group S.A.) – excluding the consolidation of TAM – reported net income of US$5.2 million for the second quarter of 2012, a decrease of 67.5% compared to the US$15.9 million reported in second quarter 2011. Operating income reached US$37.1 million, a 33.5% decrease compared to the US$55.8 million in second quarter 2011. Operating margin reached 2.6%, a decrease of 1.6 points compared to 4.2% in 2011. The Company continued to show strong passenger revenue growth, despite a seasonally low quarter, partially offsetting the impact of a more challenging environment in the cargo business, as well as the ongoing development of LAN Colombia’s operations. In addition, operating results include a one-time cost of US$7.1 million related to the successful completion of the collective bargaining process with certain unions, as well as US$9.2 million in transaction costs related to the business combination with TAM.
- TAM reported a net loss of R$928.1 million, compared to net income of R$60.3 million reported in second quarter 2011. For the second quarter 2012, TAM reported an operating loss of R$284.2 million, compared to the R$8.8 million gain in second quarter 2011. Operating results were mainly impacted by a 23.0% depreciation of the Brazilian real and decreased revenues from Multiplus, resulting from accounting changes in the recognition of such revenues implemented in the first quarter 2012. Non-operating results reflect a foreign exchange loss of R$845.9 million, and the negative mark-to-market of fuel hedging derivatives in the amount of R$93.6 million, resulting from the depreciation of the Brazilian real and the decrease in fuel prices, respectively, as compared to March 31, 2012.”
Copyright Photo: Michael B. Ing. Boeing 767-316 ER CC-CEB (msn 26327) climbs away from Los Angeles International Airport on a very clear day.
Avianca and the TACA Group apply to the DOT to combine all operations under the Avianca name and AV code
Avianca – TACA Group has applied to the U.S. Department of Transportation (DOT) to unify its entire operation under the AV code in 2013.
The application reads:
“TACA International Airlines, S.A. (TACA), Trans American Airlines, S.A. d/b/a TACA Peru (TACA Peru), Lineas Aereas Costarricenses S.A. (LACSA), and Aviateca S.A. (Aviateca) (together, the “TACA Group”) along with Aerovias Del Continente Arnericano S.A. (Avianca) hereby request an exemption under 49 U.S.C. § 40109 permitting them to register a joint trade name under 14 C.P.R. Part 215 for their collective use of the trade name “Avianca” and use of the designator code “AV” for their services in foreign air transportation to and from the United States. Additionally, the TACA Group requests blanket statements of authorization pursuant to 14 C.F.R. Part 212 in order to display the “AV*” designator code as more fully described herein. The Joint Applicants plan to use the trade name “Avianca” and the “AV” designator code in their combined marketing and sale of services to and from the United States, starting in the first quarter of 2013
Since 2005, TACA, TACA Peru, LACSA, and Aviateca have been authorized to operateunder the common “TACA” trade name and “TA” designator code.’ In 2010, the Joint Applicants came under the common ownership of a single parent company. As such, the Joint Applicants now seek to maximize the marketing potential of their common ownership with a new trade name and designator code that represents the combined strength of the Joint Applicants throughout the Americas.
LACSA holds exemption authority to operate under the common “TACA” trade name and ‘TA” designator code, it has continued to hold out and operate service under its own “LR” designator code. LACSA will, however, complete the necessary technological changes necessary to exclusively use the “Avianca” trade name and “AV” designator code.”
With this application approval, it is expected the TACA name, code and brand will be retired in 2013.
Copyright Photo: Ken Petersen. TACA Regional’s ATR 42-300 TG-RYM (msn 109), operating under the Aviateca code, departs from the challenging Toncontín International Airport in downtown Tegucigalpa in Honduras. The TACA Regional name and brand will also be retired under this plan.
Sun Country Airlines (Minneapolis/St. Paul) announced today details of their 2013 winter schedule out of the Lansing Capital Region International Airport. Sun Country’s newest additions to the schedule include twice weekly nonstop service to Las Vegas, Nevada, beginning December 27, 2012, as well as weekly nonstop service to Puerto Vallarta, Mexico during the winter season, beginning February 1, 2013.
The airline will also resume nonstop service to popular winter destinations: Cancun, Punta Cana, and Orlando via Orlando International Airport (MCO).
In addition, Sun Country has nonstop service to Washington D.C. six days per week and connections through Minneapolis/St. Paul to Phoenix, San Diego, Palm Springs, Fort Myers, Seattle/Tacoma, Los Angeles and San Francisco.
Copyright Photo: James Helbock. Boeing 737-73V N711SY (msn 30245) approaches San Diego for landing.
American Airlines‘ (Dallas/Fort Worth) CEO Tom Horton, according to this report by Reuters, meet yesterday with the creditors to update the creditors on its labor negotiations and also discuss the next steps after the pilots resoundingly rejected the new contract, seen by many as a rejection of the curent management and plans. The meeting also discussed AA’s recent financial and operational performance.
American is also close to a merger decision.
Read the full story: CLICK HERE
In other news, American is planning to drop the current New York (JFK)-Brussels route after November 5 citing poor performance. The route is currently operated with 187-seat Boeing 757-200s.
Copyright Photo: Bruce Drum. Boeing 757-223 N664AA (msn 25298) in the Susan G. Komen livery taxies at the Miami hub. Will AA continue its support of the charity?
Hong Kong Airlines to drop the London Gatwick route on September 10, will concentrate on the Asian market
Hong Kong Airlines (Hong Kong) has confirmed it will discontinue the Business Class Hong Kong-London (Gatwick) route on September 10. The carrier added the route only in March 2012. The airline will concentrate on regional routes in Asia.
Copyright Photo: Gerd Beilfuss. The airline is also modifying its color scheme. Newly-manufactured Airbus A320-214 F-WWIA (msn 5264) displays the updated look at Hamburg (Finkenwerder). The airline has been stylizing its name as Hongkong Airlines. The new airliner will become B-LPF on delivery.
Read the full report from the airline (in Portuguese): CLICK HERE
Read the analysis by the WSJ: CLICK HERE
Copyright Photo: Rodrigo Cozzato. “Smiles” is not the operative word at Gol’s headquarters with this financial report. Boeing 737-809 PR-GIT (msn 28403) approaches the Sao Paulo (Guarulhos) hub while promoting the in-house “Smiles” frequent flyer program (click on the photo for the full view and further information).
Allegiant Air (Las vegas) will open up the Sanford (near Orlando)-Lansing, Michigan route on November 1 per Airline Route. The new route will be operated two days a week.
Additionally the carrier will start twice-weekly Sanford-Columbus, Ohio (Rickenbacker) service on October 25.
The fast-growing company will also add a new route linking Mesa (near Phoenix) and Rochester, MN on November 1. As is their business plan, the route will initially be operated two days a week.
Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) is pictured in action at Long beach.
Chorus Aviation Inc. (Jazz Aviation) (Air Canada Express) (Halifax) has announced its second quarter 2012 earnings, with net income of (all currencies in Canadian dollars) $22.9 million or $0.18 per share, and adjusted net income1 of $27.4 million or $0.22 per share.
Q2 2012 Highlights:
- Operating revenue of $426.3 million.
- Free Cash Flow1 of $38.7 million, or $0.31 per share.
- Operating income of $36.6 million.
- Net income of $22.9 million, or $0.18 per share.
- Adjusted net income1 of $27.4 million, or $0.22 per share.
The full report:
Financial Performance -Second Quarter 2012 Compared to Second Quarter 2011
Operating revenue increased from $402.0 million to $426.3 million, representing an increase of $24.2 million or 6.0%. Passenger revenue, excluding pass-through costs, increased by $25.7 million or 10.8% primarily as a result of $9.0 million related to the early termination of the Thomas Cook Flight Services Agreement, rate increases made pursuant to the CPA, an adjustment of $1.8 million related to the new rates which were retroactive to January 1, 2012, a higher US dollar exchange rate, and a $1.4 million increase in incentives earned under the CPA with Air Canada; offset by a $1.9 million or 1.2% decrease in pass-through costs from $161.1 million to $159.2 million, which included $5.3 million related to fuel. Other revenue increased by $0.3 million.
Operating expenses increased from $378.1 million to $389.7 million, an increase of $11.6 million or 3.1%. Controllable Costs increased by $13.5 million, or 6.2%; offset by a decrease in pass-through costs of $1.9 million. Controllable operating expenses were impacted by the changes in the fleet ownership structure for the Q400 aircraft. CRJ100 aircraft, previously under operating leases, are being replaced by owned Q400 aircraft, whose ownership costs are comprised of depreciation under operating expenses, and interest under non-operating expenses. The Q400 aircraft lease revenue under the CPA is captured under operating revenue and is designed to provide compensation to Chorus for both depreciation and interest expense. As interest expense is shown below the operating margin, operating income increased by a similar amount on a quarter over quarter basis.
Depreciation and amortization expense increased by $4.0 million, of which $3.0 million is related to the purchase of Q400 aircraft, with the balance due to the increased major maintenance overhauls and increased capital expenditures on aircraft rotable parts and other equipment; offset by certain assets reaching full amortization.
Aircraft maintenance expense increased by $2.3 million as a result of increased Block Hours of $0.4 million, the effect of the increase in the US-dollar exchange rate on certain material purchases of $1.3 million, and increased other maintenance costs of $2.6 million; offset by a decrease in engine maintenance activity due to the return of CRJ aircraft of $2.0 million.
Salaries, wages and benefits increased by $2.8 million as a result of wage and scale increases under new collective agreements, increased Block Hours, and increased pension expense resulting from a revised actuarial valuation; offset by a reduction in the number of full time equivalent employees.
Other expenses increased by $3.4 million primarily due to increased general overhead expenses (crew expenses increased due to increased activity, rates and training expenses) and professional fees.
Non-operating expenses increased $7.8 million. This change was mainly attributable to a foreign exchange loss of $4.8 million (of which $4.5 million was related to an unrealized foreign exchange loss on long-term debt and finance leases) arising as a result of the change in value of the Canadian dollar relative to the US dollar, and increased interest expense related to the Q400 aircraft financing of $2.1 million.
EBITDA1 was $50.4 million compared to $33.9 million in 2011, an increase of $16.5 million or 48.9%. Free Cash Flow was $38.7 million, an increase of $15.4 million or 66.5% from $23.3 million.
Operating income of $36.6 million for the three months ended June 30, 2012, was up $12.6 million or 52.6% over second quarter 2011 from $24.0 million.
Net income for the second quarter of 2012 was $22.9 million or $0.18 per share, an increase of $6.0 million or 35.3% from $16.9 million or $0.14 per share.
CPA rate setting negotiations
On August 7, 2012, Jazz and Air Canada finalized an agreement on the establishment of new rates for controllable costs that are payable by Air Canada under the CPA in respect of the years 2012 to 2014 inclusive. This rate review and adjustment is required under the terms of the CPA. The new rates are retroactive to January 1, 2012, and the parties have reconciled the amounts previously paid to the amount owing based on the new rates. The reconciliation is conducted so that the parties will be in the same position they would have been had the new rates been in effect as of January 1, 2012.
Update on investment in South American regional carrier Pluna.
On April 30, 2010, Chorus purchased a 33% non-voting interest in Latin American Regional Aviation Holding Corporation (LARAH). LARAH held an indirect 75% equity interest in Pluna Líneas Aéreas Uruguayas S.A. The remaining 25% equity interest in Pluna was held, indirectly, by the Government of Uruguay.
In the second quarter of 2012, it was announced that Pluna was in financial difficulty, and that the Uruguayan government had taken control of the airline, allowing it to continue operating. All of the shares in Pluna held indirectly by LARAH, including the portion indirectly owned by Chorus, were placed in trust with the Montevideo Stock Exchange in return for certain conditions and indemnities from the Uruguayan government. As a result, Chorus recorded a write-down of $16.4 million to the fair value of the investment through other comprehensive loss, as there is no indication that the LARAH shares hold any current value, and there can be no assurances that a successful recapitalization of Pluna will result in Chorus holding an ownership stake in the resulting entity.
Subsequent to June 30, 2012, Pluna announced that it had ceased operations indefinitely. The situation with Pluna has no effect on Jazz operations or current cash flows.
1 Non-GAAP Financial Measures
Copyright Photo: TMK Photography. Bombardier DHC-8-402 (Q400) C-GGOI (msn 4381) arrives at the Toronto (Pearson) hub.
United Airlines (Chicago) and the International Association of Machinists and Aerospace Workers (IAM) Have announced an agreement to enter into expedited contract negotiations with the assistance of the National Mediation Board (NMB) for six classifications covering 35,400 employees at the airline.
The agreement announced today establishes an intense bargaining process with the goal of achieving joint labor agreements by November 15, 2012. If new accords cannot be reached, the IAM and United Airlines agree to jointly apply for mediation to combine all contracts into a single agreement for each classification.
Pre-merger United employees have been in mediated contract negotiations since 2009 that have remained stalled due to the merger of United, Continental and Continental Micronesia and subsequent representation elections. Employees from Continental and Continental Micronesia are either working under contracts that are not normally amendable or were unrepresented prior to the merger and currently have no contract.
The IAM is the largest union at United Airlines representing 34,500 Fleet Service, Customer Service and Reservations, Stock Clerk, Dining Service, Maintenance Instructor, Ground Instructor and Security Officer Employees.
Copyright Photo: Pascal Simon. Boeing 767-424 ER N76054 (msn 29449) arrives in Frankfurt.
Southwest Airlines (Dallas) has officially landed in two brand new destinations with its new service to Akron-Canton Airport (CAK) and Dayton International Airport (DAY). The new service officially launched on Sunday, August 12, and the airline is celebrating the new service in both cities with press conferences at each airport this morning. In Akron-Canton, Southwest will offer two daily roundtrip flights to Southwest’s sizable operation at Chicago Midway, as well as one daily roundtrip flight to Denver. Likewise, the airline will begin service to Dayton with one daily flight to Denver. Southwest’s service in both markets will complement AirTran Airways‘ existing service in these cities. AirTran’s service will continue, and the airlines will jointly determine the best time to convert all AirTran’s flying to Southwest as part of the ongoing integration to eventually becoming one airline flying under the Southwest brand.
AirTran began service at Akron-Canton in 1997 and started serving Dayton in 1998. Today, AirTran offers 11 daily flights from Akron-Canton in addition to the three daily Southwest flights. From Dayton, today AirTran offers eight daily flights in addition to the daily Southwest flight to Denver.
Copyright Photo: Nick Dean. Boeing 737-7H4 N918WN (msn 29843) in the Illinois One special livery arrives at Seattle/Tacoma International Airport (SeaTac).
Cathay Pacific Group (Cathay Pacific Airways) (Hong Kong) slipped into the red for the first half of 2012, reporting a new loss of $120.5 million (US). The company issued the following report:
|(Loss)/profit attributable to owners of Cathay Pacific||HK$ million||(935)||
|(Loss)/earnings per share||HK cents||(23.8)||
|Dividend per share||HK$||-||
The Cathay Pacific Group reported an attributable loss of HK$935 million for the first six months of 2012. This compares to the profit of HK$2,808 million in the first half of 2011. Loss per share was HK23.8 cents as compared to the earnings per share of HK71.4 cents in 2011. Turnover for the period rose by 4.4% to HK$48,861 million.
In the first half of 2012, Cathay Pacific’s core business was significantly affected by the persistently high price of jet fuel, passenger yields coming under pressure and weak air cargo demand – factors common to the aviation industry as a whole. Profits from associated companies, including Air China, also showed a marked decline. In response to these challenges, the Cathay Pacific Group introduced measures designed to protect its business, including schedule changes and capacity reductions, the withdrawal from service of older, less fuel-efficient aircraft, a recruitment freeze and the introduction of voluntary unpaid leave for cabin crew. At the same time the Group kept its network intact and did not allow cost reductions to compromise the brand or service quality. It also continued with major investments – new aircraft, new products and its own HK$5.9 billion cargo terminal at Hong Kong International Airport – that will benefit the business in the long term.
Fuel remains the airline’s most significant cost. Fuel prices were at historical high during the first half of 2012 (although they decreased significantly at the end of the period) and this had a major impact on Cathay Pacific’s operating results. In the first six months of 2012, the Group’s fuel costs (disregarding the effect of fuel hedging) increased by 6.5% compared to the same period in 2011. Fuel accounted for 41.6% of total operating costs. Managing the risk associated with high and volatile fuel prices remains a key challenge. The airline’s fuel hedging programme helps to mitigate the impact of fuel price fluctuations. However, with the fuel price remaining high for the past two years, realised profit from hedging activities in the first half of 2012 fell by 59.4% compared to the same period in 2011.
In the first six months of 2012, the passenger business of the Cathay Pacific Group was affected by pressure on yields against the background of increased fuel prices and higher operating costs. Revenue for the period was HK$34,713 million, representing an increase of 9.2% compared to the same period in 2011. Capacity increased by 6.9%. A total of 14.3 million passengers were carried by Cathay Pacific and Dragonair in the first six months, which is a rise of 8.6% compared to the same period in 2011. The load factor rose by 0.8 percentage points. Yield increased by 1.2% to HK66.1 cents. The high cost of fuel made it more difficult to operate profitably, particularly on long-haul routes operated by older, less fuel-efficient, Boeing 747-400 and Airbus A340-300 aircraft.
The Group’s cargo business was affected by continued weak demand in major markets. Cargo revenue for the first half of 2012 was down by 7.6% to HK$11,897 million compared to the same period in 2011. Yield was down by 0.4% to HK$2.41. Capacity was down by 4.3%, while the load factor was down by 4.1 percentage points to 64.3%. Demand for shipments from the Group’s two key markets, Hong Kong and Mainland China, was well below expectations, though the introduction of new hi-tech consumer electronics products in March resulted in a temporary improvement. Capacity was adjusted in line with demand. Cathay Pacific continued to develop new markets where demand warranted doing so, introducing freighter services to Zhengzhou in March and to Hyderabad in May.
Six Airbus A350-900 aircraft were ordered in January. In August, the airline agreed to acquire 10 Airbus A350-1000 aircraft and to convert 16 previously ordered Airbus A350-900 aircraft into Airbus A350-1000 aircraft which has a bigger capacity and longer range. The Cathay Pacific Group will take delivery of 19 aircraft in 2012 which will help to improve the operational efficiency of the fleet. In view of their high operating costs when fuel prices are high, the retirement of the airline’s Boeing 747-400 passenger aircraft has been accelerated. Three Boeing 747-400BCF freighters have also been withdrawn from service in order to reduce costs.
In May, Cathay Pacific announced its intention to reduce some passenger services on transpacific routes. This will enable fuel-efficient Boeing 777-300 ER aircraft to operate on routes currently served by older less fuel efficient Boeing 747-400 aircraft. The Group remains committed nevertheless to maintaining its network and has increased some services in Asia, where demand is relatively robust. Dragonair introduced or resumed flights to six destinations – Xi’an, Guilin, Clark, Jeju, Taichung and Chiang Mai – and will introduce flights to Kolkata and Haikou later in the year. Cathay Pacific continues to improve products and services in the air and on the ground. A new Premium Economy Class was launched alongside new long-haul Economy Class seats. The airline also continued to install its popular new Business Class on long-haul services. Cathay Pacific was proud to be named World’s Best Business Class in the 2012 World Airline Awards organized by Skytrax.
Copyright Photo: TMK Photography. Boeing 777-367 ER B-KPF (msn 36832) in the special Hong Kong-Asia’s world city motif arrives at Toronto (Pearson).
Air CEMAC (Brazzaville) has selected the Air France-KLM Royal Dutch Airlines group as its new strategic partner according to a report by Bloomberg. The new proposed airline of Central Africa has terminated its agreement with South African Airways.
The airline is planning to launch operations in January according to the report.
Read the full report: CLICK HERE
Ethiopian Airlines (Addis Ababa) will be the first airline in the world outside of Japan to operate the Boeing 787 Dreamliner. The airline has announced the schedule for its first Dreamliner:
“The first Ethiopian Dreamliner will touch down in Addis Ababa at Bole International Airport on August 17, 2012. The first flight of Ethiopian Dreamliner dubbed “The Dream Tour,” will be on August 18, 2012, with a sightseeing flight to Mount Kilimanjaro for around 270 invited guests, consisting of Ministers, Ambassadors, other VIPs, Ethiopian ShebaMiles Gold Members and media.
Thereafter, starting from August 19, 2012, the first Ethiopian Dreamliner will be operating on rotation basis to African destinations such as Kilimanjaro, Mombassa, Harare, Lusaka, Nairobi, Entebbe, Lagos, Johannesburg, Abuja, Malabo, Douala, Lomé, Accra, Maputo, Luanda as well as to Dubai, Mumbai, Rome, London and Frankfurt.”
According to Airline Route, the first regular route for the 787 will be the Addis Ababa-Rome-Washington (Dulles) route starting on September 20 (arriving at IAD on the morning of September 21).
Copyright Photo: Jay Selman. The first Dreamliner, the pictured 787-8 ET-AOQ (msn 34745) is being prepared for handover at Everett (Paine Field).
China Southern to equip 40 additional Boeing 737-700s and 737-800s with Aviation Partners Blended Winglets
Aviation Partners Boeing (APB) (Seattle) has announced the largest order in its history from a Chinese airline for retrofit Blended Winglets, with China Southern Airlines (Guangzhou) extending their technological advantage by equipping an additional 40 Boeing Next-Generation 737-700 and 737-800 aircraft with Blended Winglets. China Southern is already enjoying the benefits of APB’s Advanced Technology product on 32 aircraft, saving fuel and increasing their takeoff weight capability from difficult airports such as Kunming.
Copyright Photo: Jay Selman. Boeing 737-83N B-5122 (msn 32610) with Blended Winglets completes its final approach into Bangkok.
Wind Jet (Catania) ceased operations at midnight last night (August 11) after its merger talks with Alitalia (2nd) (Rome) collapsed. Previously Alitalia had received permission to take over the struggling carrier. The airline, based in Sicily, commenced operations on June 18, 2003.
Up to 500,000 passengers could be impacted by the grounding and the five Airbus aircraft are reported by the media to be grounded in Malta for overdue payments.
Read the full story from The Malta Independent: CLICK HERE
Copyright Photo: Guillaume Besnard. Airbus A320-211 EI-DOE (msn 215) completes its final approach into Toulouse.
ATRAN (Aviatrans Cargo Airlines) (Volga-Dnepr Group) (Moscow-Domodedovo) has acquired its first Boeing 737 freighter. The pictured 737-46Q (SF) VP-BCJ (msn 28663) was acquired on July 23, 2012 and will be operated on the Cologne/Bonn-Moscow (Domodedovo) route for UPS under a freight contract.
Previous to this new addition the cargo airline, formerly known as Moscow Aviation Enterprise, has operated Russian-built aircraft, especially those built by Antonov and Ilyushin.
Copyright Photo: Rainer Bexten. VP-BCJ is pictured at Cologne/Bonn today in a Volga-Dnepr like livery.
S7 Airlines (Siberia Airlines) (Novosibirsk) will operate seasonal flights from Moscow (Domodedovo) to Verona (Italy).
The flights will start on December 26, 2012 and operate three times a week – on Mondays, Saturdays and Sundays. Departures from Moscow at 10:55, arrival in Verona at 11:35 local time. The return flight will take off at 12:25 and arrive at 18:55.
The flights will be flown on 160-seat Boeing 737-800s with economy and business class cabins.
The Verona airport is the most popular destination for travelling to popular ski resorts of the Dolomites.
Copyright Photo: Karl Cornil. Boeing 737-83N VP-BND (msn 28245) completes its final approach into Brussels.
Ural Airlines (Yekaterinburg) will start a new route on October 3 linking Ekaterinburg with Budapest, Hungary. The new route will operate weekly on Wednesdays with Airbus A320s.
In addition, the airline will also start weekly service between Chelyabinsk and Tashkent on September 5, also with Airbus A320s according to Airline Route.
On the traffic side, the company operated a total of 14,925 flights since the beginning of 2012, including 6,201 international flights, 5,447 domestic flights, and 3,134 flights to CIS countries. The Ural Airlines passenger traffic has grown by 44 percent in the first seven months of 2012.
Ural Airlines currently operates 15 Airbus A320s and nine A321s.
Copyright Photo: Felix Gottwald. Airbus A320-211 VP-BPV (msn 203) completes its final approach into Munich.
Air Astana (Almaty) remains profitable for the first half of 2012, reporting a smaller net profit of $4.95 million.
The company issued the following report:
“Kazakhstan’s Air Astana saw its revenues grow by 13% to $394 million, matched by a similar increase in passenger numbers, although net profit declined to $4.95 million. Capacity grew by 11% with the addition of an additional Boeing 757-200 and three additional Embraer 190s. Its fleet size now stands at 26 after the retirement of three of its six Fokker 50s, with the remainder due for retirement by January 2013 to be replaced by two additional ERJ 190s.
New routes were launched from Astana to Omsk in Southeast Russia, from Astana to Tashkent and Baku, from Astana to Chymkent and Aktau in southern and western Kazakhstan, and from Almaty to Kazan in southern Russia. Planned new routes for the second half include Almaty to Hong Kong, Almaty to Ho Chi Minh City and Atyrau to Moscow. Flights from Astana to Beijing will be added to its existing Almaty to Beijing services. The airline will take delivery of 4 new Airbus A320s and 2 new A321s from November 2012 to May 2013, and recently placed an order for four new Boeing 767-300s and three Boeing 787-8s, to be delivered from November 2013 through 2017.”
Copyright Photo: Rob Skinkis. The new Astana-Beijing route starting on August 25 will be operated with Boeing 757-200s. The pictured 757-2G5 P4-EAS (msn 29488) is seen arriving at London (Heathrow).
Air Malta (Luqa, Malta) (Malta) reported an operating loss of €30 million ($36.8 million) (2011: €34 million), representing an improvement of €4.3 million over last year.
Read the full report from the airline: CLICK HERE
Copyright Photo: Antony J. Best. Airbus A319-111 9H-AEH (msn 2122) prepares to land at London (Heathrow).
Colgan Air’s Bombardier DHC-8-402 N341NG collides on the ground with Lufthansa’s Airbus A330-343X D-AIKE at Washington Dulles
Colgan Air (2nd) (Memphis) has its share of problems. First the company is going out of business on September 5. Adding to this problem, yesterday (August 10) a Lufthansa Airbus A330-343X registered as D-AIKE clipped the tail of Colgan Air’s Bombardier DHC-8-402 (Q400) N341NG operating as flight UA 3912 for United Express from Pittsburgh to Washington (Dulles). After landing at Dulles and during the taxi to the gate at Dulles International Airport (IAD) the incident happened. There were no injuries.
Read the full story from Channel 9: CLICK HERE
Lion Air (Jakarta) is celebrating the hand over and acceptance of its 70th Boeing Next-Generation 737 with a new logojet.
Copyright Photo: Ivan K Nishimura. The pictured Boeing 737-9GP ER registered as PK-LJZ (msn 37296) was handed over to the Indonesian carrier on August 9 and is pictured passing through Honolulu on the same day.
Guest Editor Joel Chusid
Bees on a Plane
Not snakes, otters or bats this time, but a few days ago passengers on a Delta flight getting ready to depart Pittsburgh International Airport for New York’s JFK were abuzz when it was suddenly discovered prior to fueling that thousands of honeybees had swarmed the right wing. Because honeybees are a protected species, a beekeeper had to be called to carefully remove the insects without harming them. Cell phones and cameras snapped pics, and passengers were more amused than concerned. The beekeeper pronounced the species docile, and he promptly and carefully removed them. Hopefully no one missed their connecting flight at JFK – but these folks now have a good cocktail party story. At the opposite end of the animal size spectrum, a couple of months ago, early morning passengers getting ready to depart Regina, Saskatchewan were startled when they looked out the airport windows to see a huge adult moose wandering on the runway. The huge animal was chased off the tarmac on to a golf course, but returned a second time by crashing a fence. Airport vehicles chased it, perhaps unintentionally onto a busy expressway, but was later caught and tranquilized in a nearby neighborhood.
Unfortunately, there can be thieves on a plane, too. The Air France flight attendant who helped herself to business class passengers’ valuables on no less than 26 flights between Paris and Tokyo a couple of years ago made international news when she was caught. But you need to be as careful on a plane as on a subway. Some years back a regular scam on Las Vegas-bound flights was to steal one single credit card from women who were foolish enough to put their purse under their seat, giving the person behind them access. Think about it, if someone managed to get one credit card from your wallet; how long would it take you to realize it? Advice: put your valuables under the seat in front of you or in the overhead bin across from you in your line of sight, not over your head! And on long-haul late night flights when people go to sleep, take extra care. It doesn’t matter if you’re on a budget carrier or a five-star airline or in which class – although the premium cabins obviously are more likely to have bigger targets. Consider the case of passengers on a Singapore Airlines flight from Jakarta to Singapore recently. As they dozed or watched videos in a darkened cabin, two thieves rifled through the overhead bins and hit the jackpot, $5000 in cash in a carry-on bag. Luckily, they were spotted and arrested on arrival. But don’t find yourself to be a victim!
I remember a famous standup comedian telling an airplane joke many, many years ago about getting on a plane and a voice came across the PA saying “This is the Captain speaking; everything on board is automated about this flight; there aren’t even real pilots- the plane is totally automated; there is no need for concern; nothing can go wrong, can go wrong, can go wrong, can go wrong….” Well, something went wrong with Southwest Airlines’ website a couple of days ago, and it’s a good thing this glitch happened on the ground. In this case, it involved social media. In celebration of their reaching three million Facebook followers (or “likers” in Facebook lingo), Southwest offered a one day half-price promotion on their website. People pounced on the sale, but in this case, something did go wrong. The charges went through, but the tickets didn’t. As a result, many would be purchasers ended up getting charged double, triple or worse. One woman trying to buy a $69.60 ticket to Georgia from Virginia was charged twenty times. People hit their credit limits, and those using debit cards had their bank accounts drained of hundreds of dollars, even to overdraft levels. This happened on a Friday night and Southwest’s customer service lines were jammed with calls, while many resorted to airing their grievances on Facebook. Knowing Southwest, they’ll make it right, but it seems that it will take a week or more to sort out some of this, and those poor folks who used debit cards may have to deal with bank fees and at least a little inconvenience.
It’s Not Illegal, But…
I don’t mean to pick on Southwest, since their employees generally have a great sense of humor and the company even had the guts to do a season of reality shows. But they also take their jobs seriously. Ladies, be advised. It is not a wise idea to paint your nails on a flight. A Burbank, California woman flying from Las Vegas to Houston a few months back proceeded to do this and was told by a flight attendant to stop. With two nails to go, she proceeded to finish the job in the lavatory. The attendant was waiting outside the door, and a verbal altercation ensued. The incident resulted in her arrest upon arrival for interfering with a flight crew, and she spent ten hours in custody. Charges were later dismissed. Social media had a field day with this. No, it’s not illegal to do this, unless you’re using a flammable product, but most netizens agreed that the strong smell of polish is offensive and some people might be allergic to it. Best advice: do it before you leave or after you land.
A recent Boeing study on premium passengers reported an obvious but critical fact to airline profitability: 15% of their passengers generate 50% of an airline’s revenue. So it’s no surprise that airlines go to great lengths to cater to their most important customers: those buying seats in the front of the plane. Some carriers offer free limousine service, on board chefs, showers, standup bars (I haven’t heard of any on-board pianos coming back that were on American Airlines flights in the 70’s) and much, much more. Now here comes Abu Dhabi-based Etihad Airways who recently purchased three beehives and 200 free-range hens to produce their own exclusive organic honey and eggs to be used in meals for their first class passengers. The airline is also planning to produce its own signature pickles at an organic farm in Abu Dhabi. What’s next?
Taking Branding to New Heights
Some airlines, and now airports, are teaming up with companies to jointly develop their brands. Virgin America previously did a deal with Banana Republic to promote their Mad Men collection, complete with a special aircraft livery. Then they asked the retailer to design new flight attendant uniforms. An 18-month project between the two firms resulted in a fashionable yet functional wardrobe that complements the aircraft mood lighting for both flight and ground crews, due to debut August 8. But the airline went a step further, and Banana Republic will offer some of the items for sale. No, you won’t be able to buy the uniform for Halloween, but the men’s and women’s trench coats, aviator sunglasses and other travel accessories will be available. At Paris-Roissy Charles de Gaulle Airport, Swedish retailer IKEA opened a 220 square meter lounge akin to walking through one of their stores. The lounge, open to all, includes nine bedrooms, sofas, TVs and even a secure children’s area where you can drop off your tykes for some supervised fun – just like in the store. The lounge opened in July, but it was due to close in early August. See photo below.
World Airline News – Fresh Daily Airline News: CLICK HERE
Bottom Copyright Photo: Mark Durbin. Airbus A320-214 N847VA wears the special Banana Republic – Madmen Collection motif at the San Francisco base.
TUI Travel (London) posted a fiscal third quarter (ending on June 30) operating profit of $115.3 million.
Read the full report from the group: CLICK HERE
TUI travel is the parent organization of Arkefly, Corsair, Jet4you, Jetairfly, Thomson Airways, TUIfly, TUIfly Nordic and the pictured new associated TUI Russia.
Copyright Photo: Paul Denton. TUI Russia (Moscow-Domodedovo) is a new joint venture of TUI AG (Hannover) and Russian investment company S-Group Capital Management, created on April 15, 2009. Kolavia (Surgut) is operatating three Airbus A321s under the TUI brand and the MetroJet (Russia) name. Operations commenced on July 3, 2012 from Moscow (Domodedovo) to Egypt (Hurghada, Sharm el-Sheikh), Spain (Barcelona, Palma de Mallorca, Ibiza), Croatia (Pula), Montenegro, Bulgaria (Varna, Bourgas), Greece (Heraklion, Rhodes) and Turkey (Antalya, Bodrum, Dalaman). A321-231 EI-ETJ is pictured arriving at Antalya using the colors of the Russian flag.
Helitt Lineas Aereas (Malaga) will add two new routes from Barcelona on October 28; Pamplona and Vitoria.
Copyright Photo: Malcolm Nason. ATR 72-212 (-ATRQ (msn 428) at Shannon became EC-LNR on delivery.
Video (in Spanish):
TAM Linhas Aereas (TAM Airlines) (LANTAM Airlines Group) (Sao Paulo) will now launch the daily nonstop Rio de Janeiro (Galeao)-Orlando route with Airbus A330-200s on October 29 according to Airline Route.
In addition, the airline will upgrade the daily Sao Paulo (Guarulhos)-Miami route to the pictured Boeing 777-300 ER starting on September 19.
Copyright Photo: Nick Dean. Climbing beautifully, brand new Boeing 777-32W ER PT-MUD departs from the runway at Paine Field near Everett.
Allegiant Air (Las Vegas) is trimming three routes from Los Angeles International Airport due to a shortage of gates. The carrier will drop all service from LAX to Billings (September 1), Pasco (September 1) and Sioux Falls (August 13).
Read the full story from the ArgusLeader.com: CLICK HERE
Copyright Photo: McDonnell Douglas DC-9-83 (MD-83) N405NV in the Blue Man Group promotional livery taxies from the gate to the runway at LAX.
Frontier Airlines (2nd) (Denver) today announced new nonstop service between its Denver, Colorado (DEN), hub and Fargo, North Dakota (FAR), with three weekly nonstop flights beginning on November 16, 2012.
Following is the schedule for Frontier’s Fargo service:
Denver-Fargo (beginning Nov. 16, 2012)
|DEN-FAR||7:10 p.m.||9:55 p.m.||Mon/Wed/Fri||A319|
|FAR-DEN||10:00 a.m.||10:55 a.m.||Tues/Thurs/Sat||A319|
Frontier last served Fargo in 2010 using Lynx Aviation’s 74-seat Bombardier DHC-8-402 (Q400) turboprop aircraft. This new service will instead operate using 138-seat Airbus A319 aircraft, which reduce the flight time between the two cities.
Copyright Photo: Brian McDonough. Airbus A319-112 N949FR with Emma, the Ermine, lands at downtown Washington (Reagan National).
Belavia Belarusian Airlines (Minsk) is planning to start twice-weekly service between its Minsk base and Barcelona, Spain on December 26 per Airline Route. The new route will be flown with Boeing 737-500s.
Copyright Photo: Paul Denton. Former Continental Airlines Boeing 737-524 EW-253PA prepares to land at Antalya, Turkey.
Alitalia (2nd) is planning to resume Rome (Fiumicino)-Zurich service on October 29 per Airline Route.
Copyright Photo: Lucio Alfieri. Embraer ERJ 190-100LR EI-RNB prepares to taxi from the gate at Bologna.
Volaris (Los Angeles) on August 4 added its sixth route to Los Angles from Culiacán, the largest city in the state of Sinaloa.
Copyright Photo: Michael B. Ing. Airbus A319 A319-133 XA-VOA with the special Krispy Kreme Donuts markings arrives at Los Angeles International Airport.
Routes from and to Los Angeles:
OLT Express (Germany) (Bremen) has been sold by Amber Gold to Dutch financial investor Panta Holdings BV.
Under the leadership of Panta Holdings, OLT Express (Germany) will continue its expansion plans by integrating Contact Air (Stuttgart) in early September.
Panta Holdings has been active in the aviation industry with Dutch company Denim Airways and leasing company Mass lease. In addition, Panta is involved in the Canadian supplier Avcorp Industries. Panta Holdings also owned VLM Airlines in the past before it was sold to the Air France-KLM Group.
After Amber Gold announced it was getting out of the aviation industry after the recent failure of OLT Express (Poland) there was a period of uncertainty for the employees of the OLT Express (Germany) and Contact Air. Now they have a more secure future.
Copyright Photo: Andi Hiltl. The Fokker 100 will now be the main aircraft for the new OLT Express. Fokker F.28 Mk. 0100 D-AOLG approaches for landing in the bright 2011 livery at Zurich. Unfortunately this color scheme is now also associated with the failure of OLT Express (Poland) which made headlines when it stranded passengers. A new branding effort by the new owners could become a new reality.
Copa Holdings (Copa Airlines and Copa Airlines Colombia) (Panama City) reported net income of $32.0 million in the second quarter. Here is the full report by the company:
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported net income of US$32.0 million for 2Q12, or diluted earnings per share (EPS) of US$0.72. Excluding special items,Copa Holdings would have reported adjusted net income of $58.6 million, or $1.32 per share, a 3.6% increase over adjusted net income ofUS$56.6 million and US$1.28 per share for 2Q11.
- Operating income for 2Q12 came in at US72.6 million, a 2.7% decrease over operating income of US$74.6 million in 2Q11. Operating margin for the period came in at 14.1%, compared to 17.4% in 2Q11, as a result of a 3.3% decline in unit revenues and a 2.7% increase in the effective price of jet fuel.
- Total revenues increased 20.6% to US$515.8 million. Yield per passenger mile increased 1.2% to 17.2 cents and operating revenue per available seat mile (RASM) decreased 3.3% to 13.1 cents. However, adjusting for a 9.6% increase in average length of haul, adjusted yields and adjusted RASM increased 5.9% and 1.2%, respectively.
- For 2Q12, passenger traffic (RPMs) grew 20.3% on a 24.8% capacity expansion, resulting in a consolidated load factor of 73.5%, or 2.8 percentage points below 2Q11.
- Operating cost per available seat mile (CASM) increased 0.6%, from 11.2 cents in 2Q11 to 11.3 cents in 2Q12. However, CASM excluding fuel costs remained flat year over year at 6.9 cents.
- Cash, short term and long term investments ended 2Q12 at US$718.2 million, representing 35% of the last twelve months’ revenues.
- During the second quarter, Copa Airlines took delivery of five Boeing 737-800 aircraft and returned two leased 737-700 aircraft. As a result,Copa Holdings ended the quarter with a consolidated fleet of 80 aircraft.
- In June, Copa Airlines launched service to four new destinations: Las Vegas (USA), Recife (Brazil), Liberia (Costa Rica) and Willemstad(Curacao). Also, on July 14, the airline launched service to Iquitos (Peru). As a result. Copa Airlines’ network now provides service to 64 destinations in 29 countries in North, Central and South America and the Caribbean.
- On June 21, Copa Airlines officially joined the Star Alliance, the largest and most important global airline network. Entry into Star Alliancestrengthens the airlines’ successful alliance with United Airlines, as well as the Hub of the Americas’ position as the major connection center in the Americas.
- For 2Q12, Copa Holdings reported consolidated on-time performance of 83.7% and a flight-completion factor of 99.4%.
|Consolidated Financial & Operating Highlights||2Q12||2Q11||% Change||1Q12||% Change|
|Revenue Passengers Carried (’000)||1,658||1,511||9.8%||1,714||-3.2%|
|Load Factor||73.5%||76.3%||-2.8 p.p.||77.2%||-3.6 p.p.|
|PRASM (US$ Cents)||12.6||12.9||-2.5%||13.7||-7.8%|
|RASM (US$ Cents)||13.1||13.6||-3.3%||14.2||-7.3%|
|CASM (US$ Cents)||11.3||11.2||0.6%||11.3||0.2%|
|CASM Excl. Fuel (US$ Cents)||6.9||6.9||-0.1%||6.8||1.0%|
|Breakeven Load Factor (1)||63.0%||58.5%||4.5 p.p.||61.2%||1.8 p.p.|
|Fuel Gallons Consumed (Millions)||52.1||42.2||23.6%||51.3||1.7%|
|Avg. Price Per Fuel Gallon (US$ Dollars)||3.32||3.24||2.7%||3.33||-0.2%|
|Average Length of Haul (Miles)||1,740||1,588||9.6%||1,724||0.9%|
|Average Stage Length (Miles)||1,063||973||9.2%||1,066||-0.3%|
|Average Aircraft Utilization (Hours)||10.6||10.2||3.5%||11.0||-3.6%|
|Operating Revenues (US$ mm)||515.8||427.7||20.6%||543.3||-5.0%|
|Operating Income (US$ mm)||72.6||74.6||-2.7%||111.6||-34.9%|
|Operating Margin||14.1%||17.4%||-3.4 p.p.||20.5%||-6.5 p.p.|
|Net Income (US$ mm)||32.0||41.3||-22.4%||95.9||-66.6%|
|Adjusted Net Income (US$ mm) (1)||58.6||56.6||3.6%||90.6||-35.3%|
|EPS – Basic and Diluted (US$)||0.72||0.93||-22.5%||2.16||-66.6%|
|Adjusted EPS – Basic and Diluted (US$) (1)||1.32||1.28||3.5%||2.04||-35.3%|
|# of Shares – Basic and Diluted (’000)||44,354||44,316||0.1%||44,341||0.0%|
(1) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 2Q12, 2Q11, and 1Q12 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges.
Copyright Photo: Marcelo F. De Biasi. Boeing 737-8V3 HP-1730CMP at Sao Paulo (Guarulhos) in the new style titles.
US Airways (Phoenix) has announced that it has reached a tentative agreement on a collective bargaining agreement with the Association of Flight Attendants (AFA), which represents the airline’s 6,800 mainline flight attendants who are based in US Airways’ three hub cities of Phoenix, Philadelphia and Charlotte, N.C., and in its Washington, D.C. focus city.
Copyright Photo: Bruce Drum. Airbus A320-214 N114UW arrives at the Charlotte hub.
American Airlines‘ (Dallas/Fort Worth) 7,500 pilots, represented by the Allied Pilots Association (APA), have rejected by a 61 percent vote, to disapprove the latest tentative contract. American stated it was disappointed by the vote and will now ask the bankruptcy court to impose harsher terms for its pilots.
Meanwhile AA’s flight attendants are voting on a tentative agreement through August 19.
Read the full account in the Washington Post: CLICK HERE
Copyright Photo: Michael B. Ing. Boeing 777-223 ER N786AN approaches Tokyo (Narita) for landing.
Air India (Mumbai) is planning to take delivery of three Boeing 787-8 Dreamliners this month according to this report by livemint.com. Apparently Boeing and Air India have settled their differences concerning compensation for the delivery delays.
Read the full report: CLICK HERE
Copyright Photo: Duncan Kirk. The pictured Boeing 787-8 VT-AND (msn 36278) is getting ready for hand over to the Indian flag carrier.
NordStar Airlines (Norilsk) is planning to start a weekly flight linking Krasnoyarsk, Siberia, Russia with Beijing, China according to Airline Route. Krasnoyarsk is the third largest city in Siberia after Novosibirsk and Omsk.
Copyright Photo: OSDU. Boeing 737-8Q8 VQ-BDN of NordStar arrives at Moscow (Domodedovo).
SAS Group (Scandinavian Airlines-SAS) (Stockholm) produced a second quarter net profit of $47.8 million. However for the first six months the group is still in the red with a net loss of $61.1 million.
Read the full report: CLICK HERE
Copyright Photo: Paul Denton. Boeing 737-883 LN-RRJ of SAS arrives at Geneva.
Frontier Airlines (2nd) (Denver) continues its expansion with new winter markets. Today the airline announced new nonstop service between Orlando, Florida (MCO) and Trenton, New Jersey (TTN), with twice weekly nonstop flights beginning on November 16, 2012. Frontier will be the only airline providing scheduled carrier service out of Trenton-Mercer Airport.
Following is the schedule for Frontier’s Orlando – Trenton service:
Orlando-Trenton (beginning Nov. 16, 2012)
|MCO-TTN||12:55 p.m.||3:20 p.m.||Monday||A319|
|MCO-TTN||7:25 a.m.||9:50 a.m.||Friday||A319|
|TTN-MCO||4:00 p.m.||6:35 p.m.||Monday||A319|
|TTN-MCO||10:30 a.m.||1:05 p.m.||Friday||A319|
The new service will operate on 138-seat Airbus A319 aircraft.
Copyright Photo: Eddie Maloney. Airbus A319-111 N932FR is pictured in action at Las Vegas. Sarge, the Bald Eagle, adorns the tail.