Australian government wants to relax ownership rules for QANTAS Airways, won’t back any loans for the state airline
QANTAS Airways (Sydney) may get a break on the restrictive ownership rules and allow for more foreign ownership. The Australian government under Prime Minister Tony Abbott has agreed to relax ownership rules for the state airline after it posted a large first half loss. Currently the airline is restricted to 35 percent for any foreign airline or 25 percent for any single foreign private investor.
However any reforms would need the approval of the Senate which is concerned about the possibility of any loss of jobs overseas due to increased foreign ownership. In return, the government is also ruling out guaranteeing a loan for the struggling flag carrier.
Read the full report from the Associated Press via ABC: CLICK HERE
QANTAS has issued this statement in response to several issues involving the carrier in the Australian media:
ISSUE: Potential removal of elements of the Qantas Sale Act rather than removing fundamental element that limits foreign ownership to 49 per cent.
FACTS: The government has recognized that the Qantas Sale Act puts us at a disadvantage.
The field is either levelled or it’s not; tilting it a bit won’t fix the fundamental problem, especially given Virgin has a two year head start on attracting foreign investors.
ISSUE: Claims that Qantas did not meet its obligations to consult with the Australian Services Union (ASU) on redundancies at Sydney International Airport.
FACTS: Qantas intends to run a voluntary redundancy program for full-time employees at Sydney International Airport to better align staffing levels with flight scheduling.
There will be changes to the mix of customer service staff to better suit the peak periods at the airport. This will result in an increase in part-time staff and a reduction in full-time staff. This was announced on 27 February.
Qantas met its obligation to consult and is meeting again with the ASU on our intention to offer voluntary redundancies to employees at Sydney International Terminal.
ISSUE: Claims by Senator Nick Xenophon that Qantas should open its books to prove it is not cross-subsidising Jetstar
FACTS: These claims have been made a number of times over the past few years and Qantas has categorically denied them each time.
Qantas has obligations as an ASX listed company, which require us to publish accurate financial data.
Qantas has previously offered the unions an opportunity to have our financial accounts audited independently on the condition that they would cease making baseless claims about cross subsidisation when it was shown it wasn’t occurring. They didn’t take Qantas up on this offer.
ISSUE: Claims that the carbon tax is a key issue facing Qantas
FACTS: The major issues faces Qantas are not related to carbon pricing.
We have been clear that levelling the playing field is the most important policy measure that needs to be fixed, and with some urgency.
ISSUE: Claims that Qantas’ partnership with Modern Family may have cost us up to $4 million.
FACTS: For commercial reasons we don’t disclose the cost of partnerships such as Modern Family, but the $4 million figure is grossly inflated and simply wrong. There are several partners involved in this deal and a large part of Qantas’ contribution has been providing flights.
We’re very comfortable with the investment we’ve made and the return we’re getting. This is not exactly new territory for us and we know that exposure through things like Ellen and Modern Family equals more visitors flying Qantas to Australia.
There are things we will need to cut back on as a business, but investing in Australian tourism and encouraging more people to fly here is key to running an airline.
The Queensland Government (through Tourism Queensland and Screen Queensland) has been closely involved in the Modern Family promotion.
Last year, Qantas helped to bring the Ellen DeGeneres Show to Australia in a move that saw a 22 per cent increase in inbound flights to New South Wales alone, as well as an overall boost in destination awareness for Australia.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-438 ER VH-OEH (msn 32912) prepares to land at Los Angeles International Airport.
QANTAS to cut 5,000 jobs and 50 aircraft, including 8 remaining A380s to be deferred, last 3 787s to be deferred, retirement of 747-400s to be expedited
QANTAS Airways (Sydney) has also issued its cost-reduction plan on the heels of its first half financial loss reported today (please see the separate financial report). The QANTAS Group issued this statement detailing the cuts:
QANTAS today announced detail of its $2 billion cost reduction program and capital expenditure review.
QANTAS will take action to permanently reduce costs in all parts of the QANTAS Group through to FY17, including fleet and network changes, productivity improvements, consolidation of business activities, new technology and procurement savings. More than 50 aircraft will be deferred or sold and the Group’s workforce will be reduced by 5,000 full-time equivalent positions by FY17.
The QANTAS Group’s planned capital expenditure net of operating lease liability will be reduced to $800 million in both FY15 and FY16, a total reduction of $1 billion.
QANTAS has reached agreement on the return of its Brisbane Airport terminal lease, together with related assets, to the airport owner at a cash value of $112 million. The broader structural review of the QANTAS Group portfolio continues and no final decisions have been made on other assets.
Chief Executive Officer Alan Joyce said QANTAS would do everything in its control to overcome some of the toughest market conditions it had ever faced.
“It’s clear that the market QANTAS operates in has changed, with structural economic shifts exacerbated by an uneven playing field in Australian aviation policy,” Mr Joyce said.
“This situation is reflected in the financial result QANTAS announces today, an Underlying PBT1 loss of $252 million for the half-year. This is an unacceptable and unsustainable result. Comprehensive action is needed in response.
“QANTAS’ competitors have increased capacity to Australia by 46 per cent since 2009, more than double the world average, at a time of record fuel costs and economic volatility.
“We have met these challenges head on. Over the past four years, we have been carrying out the biggest transformation since QANTAS was privatized – cutting comparable unit costs1 by 19 per cent over four years, introducing new aircraft and technology on a large scale, modernizing work practices and revitalising service. But this is not enough for the circumstances we now face.
“The Australian domestic market has been distorted by current Australian aviation policy, which allows Virgin Australia to be majority-owned by three foreign government-backed airlines – yet retain access to Australian bilateral flying rights.
“Late last year, these three foreign-airline shareholders invested more than $300 million in Virgin Australia at a time when, as Virgin Australia reported to the ASX on 6 February, it was losing money. That capital injection has supported continued domestic capacity growth by Virgin Australia despite its growing losses.
“The Virgin Australia Group has increased capacity into the domestic market at more than twice the rate of the Qantas Group since July 2011. As a result of these combined capacity increases, the total domestic profit pool has been shrunk from more than $700 million in FY12 to less than $100 million in 1H14.
“We have been clear with the Australian Government about the uneven playing field and the measures we believe could address it. But our focus today is on the immediate steps that Qantas must take.”
“We must take actions that are unprecedented in scope and depth to strengthen the core of the Qantas Group business.
“To reach $2 billion in cost cuts over three years, we have to work our assets harder, become more productive, retire older aircraft, and make sure that our fleet and network are the right size. We must defer growth and cut back where we can, so that we can invest where we need to.
“We have already made tough decisions and nobody should doubt that there are more ahead.
“While the implementation and pace of delivery must change, the guiding principles of our strategy will not. Safety remains our first priority and we are committed to being the airlines of choice for customers in all our markets.
“Our long-term goal remains the transformation of the Qantas Group for profitable, sustainable growth.
“Over the next three years, we aim to secure our strong Group domestic position and maximise Qantas International’s competitiveness.
“QANTAS Loyalty will continue to access new markets and revenue streams, building on its success to date.
“When it comes to Jetstar in Asia, we need to take the right decisions in accord with current market circumstances and our balance sheet. In Singapore, growth has been suspended by the Jetstar Asia Board until such time as conditions improve.
“The over-arching focus in Asia continues to be profitably bedding down existing businesses and partnerships. Jetstar has been a pioneer Australian brand across Asia and we continue to see major opportunities for it in the world’s fastest-growing aviation region.”
Commitment to Customers
“Despite the tough decisions we have to make, we will keep delivering outstanding service for our customers,” Mr Joyce said.
“Important customer investments will continue, such as the upgrade of our Airbus A330 fleet and the opening of new lounges in Hong Kong and Los Angeles, and the service that QANTAS passengers receive will not be compromised. Thanks to the skill and commitment of our people, we have earned record customer advocacy, and we plan to keep it there.”
Accelerated Qantas Transformation Program
Fleet and Network
After a detailed review of network and schedules, the QANTAS Group will re-assign aircraft to better match demand, defer aircraft orders, dispose of aircraft, increase fleet utilization and exit under-performing routes.
- QANTAS Domestic will increase utilisation of narrow-body aircraft, allowing Airbus A330 aircraft in the domestic market to concentrate solely on East-West services and peak services on the Sydney-Melbourne-Brisbane triangle.
- A330-200s will be freed up to enter the QANTAS International fleet as replacement aircraft, helping to accelerate the retirement of older Boeing 747 aircraft.
- All six of QANTAS International’s non-reconfigured Boeing 747s will be retired ahead of schedule, by the second half of FY16. Nine reconfigured Boeing 747s with A380-standard interiors will remain.
- QANTAS’ final two Boeing 737-400s have been retired this month and all Boeing 767s will be retired by the third quarter of FY15, resulting in cost and passenger benefits from fleet simplification.
- QANTAS International’s eight remaining Airbus A380 orders will be deferred, with an ongoing review of delivery dates to meet potential future requirements. Schedule changes will allow maximum use of QANTAS’ current 12 A380s.
- The final three of 14 Jetstar Airways Boeing 787-8s on firm order will be deferred.
- Jetstar’s A320 order book has been restructured.
In total, more than 50 aircraft will be deferred or sold.
By FY16, the Group’s passenger fleet will have been simplified from 11 aircraft types to seven aircraft types, with an average age of eight years.
Over the next 12 months, QANTAS will exit underperforming routes and make aircraft changes on certain routes to better match capacity to demand.
- QANTAS International will withdraw from the Perth-Singapore route (first quarter FY15).
- QANTAS’ Brisbane-Singapore and Sydney-Singapore services will be operated by Airbus A330s, replacing Boeing 747s (first quarter FY15)
- QANTAS services between Melbourne and London will be re-timed in November 2014 to reduce A380 ground time in Heathrow (second quarter FY15). There are no changes to overall capacity on London flights.
- The Melbourne-London service change frees up an A380 for additional flying, and QANTAS will evaluate opportunities to use the aircraft on other routes.
Over the next three years, QANTAS will reduce employee numbers across the Group by the equivalent of 5,000 full-time positions, through measures including:
- Reduction of management and non-operational roles by 1,500.
- Operational positions affected by fleet and network changes.
- Restructure of line maintenance operations.
- The closure of Avalon maintenance base, as previously announced.
- Restructure of catering facilities including the closure of Adelaide catering, as previously announced.
The wage freeze for executives implemented in December 2013 will continue and will be extended to all QANTAS Group employees.
The wage freeze will be:
- Ongoing for executives.
- Immediate for open EBAs.
- Proposed for other EBA-covered staff.
This is in addition to the reduction of fees paid to the QANTAS board and a reduction in the take home pay of the QANTAS CEO by 36 per cent this financial year.
No pay rises or bonuses will be contemplated until QANTAS is profitable again on a full-year Underlying PBT basis.
Mr Joyce said these were hard but necessary decisions to protect as many QANTAS jobs as possible and build a strong business for the future.
“I regret the need for these wide-ranging job losses, but we will do everything we can to make the process easier for employees who leave the business,” Mr Joyce said.
“At the end of this transformation, QANTAS will remain an employer of more than 27,000 people, the vast majority based in Australia – and we will be a better and more competitive company.”
Capital Expenditure and Financial Position
The Group’s planned capital expenditure net of operating lease liability in FY14 will be $1 billion.
Planned capital investment, including movements in operating lease liabilities, will be $800 million per year in FY15 and FY16 – a total reduction of $1 billion over the two years. QANTAS will maintain flexibility to make further changes if needed.
Transformation through FY17 will be funded through the reprioritisation of capital, future free cash flow as benefits from the cost reduction program begin to flow, and asset sales. QANTAS continues to target positive free cash flow from FY15, with capital expenditure aligned to financial performance.
QANTAS has total liquidity of $3 billion, comprising $2.4 billion in cash and $630 million in standby debt facilities, as at 31 December 2013.
Update on Structural Review
QANTAS has reached agreement on the return of its Brisbane Airport terminal lease, together with related assets, to Brisbane Airport Corporation, with a cash value of $112 million to be recognised in the second half of FY14.
QANTAS continues to work through the broader structural review of the QANTAS Group portfolio launched in December 2013.
The review has identified a number of high-quality assets of significant value.
No final decisions have been made about other assets within the Group’s portfolio.
QANTAS will update the market as and when required.
Copyright Photo: Bernhard Ross/AirlinersGallery.com. The retirement of the on-converted Boeing 747-400s will be expedited. Boeing 747-48E VH-OEB (msn 25778) rests between flights at Frankfurt.
Atlas Air Worldwide Holdings, Inc. (New York) today said that its Atlas Air, Inc. unit (New York) and QANTAS Airways Ltd. (Sydney) have extended their long-standing ACMI (aircraft, crew, maintenance and insurance) relationship.
Under the terms of the agreement, Atlas Air will continue to operate two Boeing 747-400 freighters in ACMI service for QANTAS on trans-Pacific routes linking Australia and Asia with the United States.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-47UF N492MC (msn 29253) departs from Anchorage, Alaska after a cargo and fuel stop. The freighter also carries small QANTAS Airways sub-titles.
Delta Air Lines (Atlanta) has issued this statement about changes to its SkyMiles program:
Delta Air Lines has taken another step in its ongoing commitment to improve the travel experience by unveiling changes to the SkyMiles program. The 2015 SkyMiles program will introduce a shift from today’s current model in which customers earn redeemable mileage based on distance traveled to one based on ticket price. The program updates will be effective January 1, 2015 and will also include a new mileage redemption structure that will improve Award seat availability at the lowest mileage requirement levels, offer One-Way Awards at half the price of round-trip, provide additional Miles + Cash Award options, as well as make significant improvements to delta.com and Delta reservations Award shopping tools.
A New Mileage Earning Model
Today’s method of earning redeemable miles based on the distance a customer flies will change to a model of earning redeemable miles based on the price of the ticket purchased. Delta is providing 10 months advance notice of the upcoming program changes so that customers have ample time to make travel plans.
Customers will be able to earn between five and 11 miles per dollar* spent based on their SkyMiles status, and continue to earn up to an additional two miles per dollar* when using their Delta SkyMiles Credit Card, for a total of up to 13 miles per dollar. The updated program will better reward the customers who spend more with Delta and give them improved mileage-earning opportunities.
The updated mileage-earning plan, for travel beginning January 1, 2015, will better recognize frequent business travelers and those less frequent leisure customers who purchase premium fares. The move is consistent with a trend in the travel industry of rewarding customer behavior based on price. Customers will continue to earn additional miles for purchases with a Delta SkyMiles Credit Card+.
|SkyMiles program status||Miles per dollar*||Miles earned with
|Total miles per
|+ on Delta spend|
For travel marketed and ticketed by Delta’s partner airlines, members will earn a percentage of miles flown as determined by the fare class purchased and will also earn Medallion mileage bonuses on eligible fares.
New Redemption Options
SkyMiles members will gain even more redemption options with the introduction of up to a five-tier structure to give them a wider variety of Awards and improve overall availability at the lowest price points. The lowest level for SkyMiles Saver Awards will remain at 25,000 miles for an Economy Class Award ticket for travel within the U.S. and Canada excluding Hawaii. All of Delta’s worldwide redemption charts will be updated to reflect the new options in the last quarter of 2014 and will be effective for new Award bookings beginning Jan. 1, 2015.
In addition to offering multiple new redemption levels, the SkyMiles program will also introduce One-Way Award tickets starting as low as 12,500 miles within the U.S. and Canada excluding Hawaii and will offer customers the ability to redeem Miles + Cash to provide more Award booking options for tickets purchased at delta.com or through Delta reservations.
Customers will continue to have access to every seat on any Delta flight as an Award seat with no blackout dates. In 2013, frequent flyers redeemed more than 271 billion miles in the SkyMiles program for more than 11 million Award redemptions.
Delta and the SkyMiles Program
Delta is the only major airline that offers elite perks such as unlimited complimentary upgrades, no mileage expiration, no Award fees, a published Diamond Medallion tier and rollover Medallion Qualification Miles.
Now in its 33rd year, SkyMiles is one of the longest-running and most successful loyalty programs in the travel industry. Delta offers many ways to redeem frequent flyer miles, including airline tickets on Delta and 28 partner airlines, mileage upgrades, car rentals, hotel stays and Delta Sky Club memberships, and is the only major airline with miles that don’t expire. For more information on the SkyMiles program, Medallion status and mileage-redemption options.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-451 N673US (msn 30268) departs from Los Angeles International Airport.
Cargolux Airlines International (Luxembourg) and Boeing (Chicago and Seattle) have announced an order for an additional 747-8 Freighter. The order, valued at $357.5 million at list prices, is the 14th 747-8 Freighter the cargo carrier has ordered from Boeing.
“The Cargolux Board of Directors approved the order of our 14th 747-8 Freighter almost 35 years to the day that the airline took delivery of its first 747 Freighter ever,” said Richard Forson, interim president and CEO of Cargolux. “This shows how pleased we, as an all-747 cargo operator, are with the performance and economics of this new generation aircraft and underlines the importance of the role of the 747 overall in the success of our company.”
Cargolux was the world’s first operator of the 747-8 Freighter, taking its first delivery of the airplane type in October 2011. Since then, the airline has taken a total of nine 747-8 Freighters, providing the carrier with increased cargo capacity coupled with excellent economic performance. With today’s announcement, Cargolux has a total of five unfilled orders for 747-8 Freighters.
As well as being one of the launch customers for the 747-8 Freighter, Cargolux also took delivery of the first ever 747-400 Freighter in November 1993. The all-Boeing carrier has a fleet comprised entirely of 747-400 Freighters and 747-8 Freighters.
Copyright Photo: Arnd Wolf/AirlinersGallery.com. Boeing 747-8R7F LX-VCD (msn 35809) taxies at Munich.
Lufthansa (Frankfurt) has called on the European Commission to block any alliance and buy-in between Alitalia (2nd) (Rome) and Etihad Airways (Abu Dhabi). Etihad, which already has alliances with Aer Lingus, Airberlin and Air Serbia in Europe, is reportedly close to a deal with Alitalia according to Reuters. Lufthansa has lobbied against state-owned Gulf airlines (especially Emirates Etihad Airways and Qatar Airways) from expanding in Europe because of their unfair state aid.
Read the full report: CLICK HERE
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-830 D-ABYH (msn 37832) climbs majestically from the runway at Los Angeles International Airport (LAX).
AirBridgeCargo-ABC (Moscow), part of Volga-Dnepr Group and Russia’s largest cargo airline, recently celebrated the delivery of the airline’s fifth 747-8 Freighter (VQ-BRJ, msn 37670) on December 27, 2013.
With delivery of the fifth 747-8 Freighter, AirBridgeCargo continues to follow its long-term fleet modernization strategy to further improve the quality of its product. The new aircraft will be used on ABC’s existing route network linking Europe, Asia and the United States via the airline’s hub in Moscow.
At present AirBridgeCargo’s fleet consists of 12 Boeing 747s, including five Boeing 747-400ERFs (Extended Range Freighters), three Boeing 747-400 Freighters and five Boeing 747-8 Freighters.
The carrier achieved a 5% growth in cargo tonnage in 2013, with its highest ever volume of 340,000 tons across its network linking Europe, Russia, Asia and North America.
The airline reported volume growth on all of its major routes and this was matched by a 5% improvement in revenue. AirBridgeCargo’s Freight Ton-Kilometers (FTK) rose 15% in 2013, while its average load factor of 72% show a marginal 1.7% gain over the previous year.
Despite challenging market conditions in 2013, ABC continued with its long-term fleet modernisation strategy and took delivery of two more new generation freighters Boeing 747-8F. With the delivery of its fifth Boeing 747-8F in December 2013, AirBridgeCargo completed its fleet renewal plan which began two years ago. This investment has reduced the average age of its aircraft fleet from nine years at the end of 2011 to three years at the end of 2013. At present, ABC’s fleet is one of the youngest in the air cargo industry.
AirBridgeCargo took delivery of its first Boeing 747-8F (VQ-BLQ) (see above) in January 2012, with the second and third aircraft joining its fleet in March and December 2012. The fourth new generation freighter entered service with ABC in September last year. As part of the modernization program, ABC removed four older aircraft from its fleet; two Boeing 747-200F, one Boeing 747-300F and a Boeing 747-400ERF. A further 747-400ERF will leave its fleet in 2014.
In 2013, AirBridgeCargo joined the Olympic movement with the delivery of 126 tons of broadcasting equipment as well as 214 tons of sports and lighting equipment for the 2014 Winter Olympics taking place in the Russia City of Sochi in February. The flights were performed using Boeing 747 and Boeing 737 cargo aircraft.
Copyright Photo: Bernhard Ross/AirlinersGallery.com. The first, Boeing 747-8HVF VQ-BLQ (msn 37581) taxies at Frankfurt.
Boeing (Chicago and Seattle) yesterday (January 29) revealed a 747-8 Freighter (N770BA) painted in the livery of the NFL’s Seattle Seahawks. The livery commemorates the team’s National Football Conference Championship and upcoming appearance in Super Bowl XLVIII.
Boeing is a sponsor of the Seattle Seahawks and has partnered with the team for more than a decade on programs in the Puget Sound area.
“The Seahawks have been an inspiration to our entire community throughout this incredible season,” said Boeing Commercial Airplanes President and CEO Ray Conner. “We’re honored that we could join together two Northwest icons, the Seahawks and the 747, for this special salute from the entire Boeing team.”
This 747-8 is owned by Boeing and currently being used for flight testing. The special livery features the distinctive Seahawks logo and a “12″ on the tail to salute the team’s fans. The airplane will make its first flight in its new livery on Thurs., January 30.
“The 747 team is proud that one of our airplanes could be used as a tribute to the Seahawks’ success this season and a rallying cry for the team as they prepare for the Super Bowl,” said Eric Lindblad, vice president and general manager, 747 program, Boeing Commercial Airplanes. “The partnerships we have with the Seahawks and others are making a positive difference in the communities where Boeing employees live and work. We join with all Seahawks fans in wishing the team success on Sunday.”
Boeing 747-8 Seahawks Livery Fun Facts
- Seattle Seahawks quarterback Russell Wilson’s longest pass this season, 80 yards (240 ft.), was almost the same length as a 747-8 fuselage (243.5 ft.)
- Russell Wilson threw for 3,357 yards (10,071 ft.) this season, similar to the runway takeoff distance for a 747-8 (10,650 ft.)
- Seattle Seahawks wide receiver Percy Harvin can dash the full length of the 747-8 main deck, 180 ft., in less than seven seconds
- Seattle Seahawks running back Marshawn Lynch can squat with 16 economy seats (30 lbs. per seat)
- A 747-8 Freighter can carry 121 million Skittles candies, or 302,400 one lb. bags
- It would take 144 747-8 passenger airplanes (Intercontinentals) to carry all the Seahawks fans in CenturyLink Field (67,000 seats)
- The 747-8 can cover the length of a football field in one second at takeoff
- Seahawks fans’ Guinness World Record for crowd noise is approximately 38 times louder than the 747-8 at departure
On January 30 the Boeing Seattle Seahawks 747 took to the skies over Washington in advance of the team’s appearance Sunday in Super Bowl XLVIII.
The airplane’s flight pattern took it past Seattle landmarks including the Space Needle and CenturyLink Field, home of the Seahawks. The 747-8 then flew over Eastern Washington in a pattern that formed the number “12,” a salute to all Seahawks’ fans.
“You may remember that we drew a ’747′ over the continental United States during 747-8 certification flight testing,” said Boeing 747 chief pilot Mark Feuerstein “Although the ’12′ is smaller in scale, the pride and sense of community behind it make it feel just as big for the entire Boeing team.”
Boeing is a sponsor of the Seattle Seahawks and has partnered with the team for more than a decade on programs in the Puget Sound area.
Copyright Photo: Boeing. Boeing 747-87UF N770BA (msn 37564) pushes out of the paint shop at rainy Paine Field.
The Boeing Company (Chicago) reported fourth-quarter revenue of $23.8 billion and core earnings per share (non-GAAP) that increased 29 percent* to $1.88, driven by strong performance across the company’s businesses and higher deliveries (Table 1). Fourth-quarter core operating earnings (non-GAAP) of $1.8 billion includes a $406 million non-cash charge to settle A-12 litigation dating back to 1991, retiring a longstanding risk to the company. Excluding the A-12 charge, fourth-quarter 2013 core operating earnings increased 22 percent* to $2.2 billion and core operating margin increased to 9.4 percent*. Core and GAAP earnings per share includes a charge of $0.34 per share related to A-12 partially offset by a benefit of $0.28 per share for a tax regulation change.
Revenue rose 6 percent in the full year to a record $86.6 billion and core earnings per share increased 20 percent* to a record $7.07. Full-year 2013 GAAP earnings per share was $5.96.
Core earnings per share guidance for 2014 is set at between $7.00 and $7.20, while GAAP earnings per share guidance is established at between $6.10 and $6.30. Revenue guidance is between $87.5 and $90.5 billion, including commercial deliveries of between 715 and 725. Operating cash flow before pension contributions* is expected to be approximately $7 billion, while operating cash flow guidance is set at approximately $6.25 billion.
“Strong fourth-quarter results underscored an outstanding full year of core operating performance that drove record revenue and earnings and increased returns to shareholders,” said Boeing Chairman and Chief Executive Officer Jim McNerney.
“Our Commercial Airplanes business accelerated delivery of its record backlog by successfully increasing production rates while also achieving important development milestones on the 737 MAX and 787-9 and launching the new 787-10 and 777X models with an unprecedented customer response. Our Defense, Space & Security unit overcame a tough operating environment to record expanded revenue, earnings and margins while executing to our commitments on the KC-46A tanker and developing and delivering important new capabilities to customers, such as the P-8 maritime aircraft and the Inmarsat-5 satellite,” said McNerney.
“For 2014, we remain focused on maintaining our commercial airplanes market leadership, strengthening and repositioning our defense, space and security business and continuing to meet the needs of our customers by improving productivity, executing to development plans and delivering our unmatched portfolio of innovative aerospace products and services.”
|Table 2. Cash Flow||Fourth Quarter||Full Year|
|Operating Cash Flow Before Pension Contributions*||$1,409||$4,204||$9,721||$9,058|
|Operating Cash Flow||$1,380||$4,167||$8,179||$7,508|
|Less Additions to Property, Plant & Equipment||($638)||($495)||($2,098)||($1,703)|
|Free Cash Flow*||$742||$3,672||$6,081||$5,805|
Operating cash flow in the quarter was $1.4 billion, reflecting commercial airplane production rates, strong core operating performance and timing of receipts and expenditures (Table 2). During the quarter, the company repurchased 7.6 million shares for $1.0 billion and paid $0.4 billion in dividends, reflecting a 10 percent increase in dividends paid compared to the same period of the prior year. Based on the strong cash generation and outlook, in December, the board of directors authorized an additional $10 billionshare repurchase program and raised the quarterly dividend 50 percent.
|Table 3. Cash, Marketable Securities and Debt Balances||Quarter-End|
|(Billions)||Q4 13||Q3 13|
|Marketable Securities 1||$6.2||$5.9|
|The Boeing Company, net of intercompany loans to BCC||$7.0||$7.0|
|Boeing Capital Corporation, including intercompany loans||$2.6||$2.6|
|Total Consolidated Debt||$9.6||$9.6|
|1||Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”|
Cash and investments in marketable securities totaled $15.3 billion at year-end (Table 3), down from$15.9 billion at the beginning of the quarter. Debt was $9.6 billion, unchanged from the beginning of the quarter.
Total company backlog at year-end was a record $441 billion, up from $415 billion at the beginning of the quarter, and included net orders for the quarter of $48 billion. Backlog is up $51 billion from prior year-end, reflecting $135 billion of net orders in 2013.
Boeing Commercial Airplanes
|Table 4.||Fourth Quarter||Full Year|
|($ in Millions)||2013||2012||Chg||2013||2012||Chg|
|Opg Margin||10.3%||8.9%||1.4 Pts||10.9%||9.6%||1.3 Pts|
Boeing Commercial Airplanes fourth-quarter revenue increased to $14.7 billion and full-year revenue increased to a record $53 billion on higher delivery volume. Fourth-quarter operating margin improved to 10.3 percent and full-year operating margin grew to 10.9 percent on the higher volume, favorable delivery mix and continued strong operating performance (Table 4).
During the quarter, the company launched the 777X with 259 orders and commitments. During the year, the 787 program completed first flight of the 787-9, successfully launched the 787-10 and began operating at a 10 per month production rate in final assembly. The 737 program delivered at a record production rate of 38 per month and has won nearly 1,800 firm orders for the 737 MAX since launch. In 2013, a record 648 commercial aircraft were delivered. In January 2014, the company reached an eight-year contract extension through 2024 with the International Association of Machinists & Aerospace Workers District 751 (IAM).
Commercial Airplanes booked 465 net orders during the quarter and 1,355 during the year. Backlog remains strong with 5,080 airplanes valued at a record $374 billion.
Boeing Defense, Space & Security
|Table 5.||Fourth Quarter||Full Year|
|(Dollars in Millions)||2013||2012||Chg||2013||2012||Chg|
|Boeing Military Aircraft||$4,395||$4,037||9%||$15,936||$16,019||(1)%|
|Network & Space Systems||$2,272||$2,024||12%||$8,512||$7,911||8%|
|Global Services & Support||$2,188||$2,282||(4)%||$8,749||$8,677||1%|
|Total BDS Revenues||$8,855||$8,343||6%||$33,197||$32,607||2%|
|Earnings from Operations|
|Boeing Military Aircraft||$441||$313||41%||$1,465||$1,489||(2)%|
|Network & Space Systems||$233||$138||69%||$719||$562||28%|
|Global Services & Support||$280||$300||(7)%||$1,051||$1,017||3%|
|Total BDS Earnings from Ops||$954||$751||27%||$3,235||$3,068||5%|
|Operating Margin||10.8%||9.0%||1.8 Pts||9.7%||9.4%||0.3 Pts|
Boeing Defense, Space & Security’s fourth-quarter revenue increased 6 percent to $8.9 billion, while operating margin increased to 10.8 percent (Table 5). For the full year, revenue increased 2 percent to$33.2 billion, while operating margin increased to 9.7 percent.
Boeing Military Aircraft (BMA) fourth-quarter revenue increased to $4.4 billion, reflecting higher deliveries. Operating margin increased to 10.0 percent, reflecting the higher deliveries and strong performance. During the quarter, BMA achieved Initial Operating Capability (IOC) on the P-8A Poseidon aircraft.
Network & Space Systems (N&SS) fourth-quarter revenue increased to $2.3 billion, reflecting higher delivery volume and mix, and operating margin increased to 10.3 percent on strong performance. During the quarter, N&SS was awarded a contract for a fourth Inmarsat-5 satellite.
Global Services & Support (GS&S) fourth-quarter revenue was $2.2 billion, reflecting lower volume in integrated logistics. Operating margin was 12.8 percent. During the quarter, GS&S was awarded contracts for the B-52 and B-1 bomber modifications and upgrades.
Backlog at Defense, Space & Security was $67 billion, of which 37 percent represents orders with international customers.
Additional Financial Information
|Table 6. Additional Financial Information||Fourth Quarter||Full Year|
|(Dollars in Millions)||2013||2012||2013||2012|
|Boeing Capital Corporation||$105||$129||$408||$468|
|Unallocated items and eliminations||$123||($358)||($65)||($610)|
|Earnings from Operations|
|Boeing Capital Corporation||$9||($12)||$107||$88|
|Other segment income/(expense)||($99)||$31||($156)||($186)|
|Unallocated items and eliminations excluding unallocated pension/postretirement expense||($532)||($200)||($1,105)||($492)|
|Unallocated pension/postretirement expense||($323)||($212)||($1,314)||($899)|
|Other income, net||$15||$23||$56||$62|
|Interest and debt expense||($96)||($112)||($386)||($442)|
|Effective tax rate||14.0%||36.3%||26.4%||34.0%|
At quarter-end, Boeing Capital Corporation’s (BCC) net portfolio balance was $3.9 billion down from $4.1 billion at the beginning of the quarter. BCC’s debt-to-equity ratio was 5.0-to-1. Other segment earnings decreased $130 million in the quarter partly due to higher asset impairment expense.
Unallocated items and eliminations excluding unallocated pension/postretirement expense increased in the fourth quarter of 2013 primarily due to a $406 million charge associated with the A-12 settlement. Total pension expense for the fourth quarter was $717 million, up from $576 million in the same period last year. The company’s income tax expense was $201 million in the quarter, compared to $557 million in the same period of the prior year, due to a $212 million benefit recorded in fourth-quarter 2013 for a tax regulation change.
The company’s 2014 financial guidance (Table 7) reflects continued strong performance in both businesses.
|Table 7. Financial Outlook|
|(Dollars in Billions, except per share data)||2014|
|The Boeing Company|
|Revenue||$87.5 – 90.5|
|Core Earnings Per Share*||$7.00 – 7.20|
|Earnings Per Share||$6.10 – 6.30|
|Operating Cash Flow Before Pension Contributions*||~ $7|
|Operating Cash Flow 1||~ $6.25|
|Boeing Commercial Airplanes|
|Deliveries 2||715 – 725|
|Revenue||$57.5 – 59.5|
|Operating Margin||~ 10%|
|Boeing Defense, Space & Security|
|Boeing Military Aircraft||~ $15|
|Network & Space Systems||~ $7.7|
|Global Services & Support||~ $7.8|
|Total BDS Revenue||$30 – 31|
|Boeing Military Aircraft||~ 9.5%|
|Network & Space Systems||~ 8.5%|
|Global Services & Support||~ 10.5%|
|Total BDS Operating Margin||~ 9.5%|
|Boeing Capital Corporation|
|Pre-Tax Earnings||~ $0.05|
|Research & Development||~ $3.2|
|Capital Expenditures||~ $2.5|
|Pension Expense 3||~ $3.1|
|Effective Tax Rate 4||~ 31%|
|1||After discretionary cash pension contributions of $0.75 billion and assuming new aircraft financings under $0.5 billion|
|2||Assumes approximately 110 787 deliveries|
|3||Approximately $1.1 billion is expected to be recorded in unallocated items and eliminations|
|4||Assumes the extension of the research and development tax credit|
|*||Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”|
Boeing’s 2014 revenue guidance is established at between $87.5 and $90.5 billion. Core earnings per share guidance is set at between $7.00 and $7.20, and earnings per share guidance is expected to be between $6.10 and $6.30. Total company 2014 operating cash flow before pension contributions is expected to be approximately $7 billion, while operating cash flow is expected to be approximately $6.25 billion in 2014, including $0.75 billion of discretionary pension contributions. Total company pension expense in 2014 is expected to be approximately $3.1 billion (of which approximately $2.0 billion is expected to be recorded in core operating earnings and $1.1 billion recorded in unallocated items and eliminations).
Commercial Airplanes’ 2014 deliveries are expected to be between 715 and 725, which includes approximately 110 787 deliveries. Revenue at Commercial Airplanes is expected to be between $57.5 and $59.5 billion with operating margins of approximately 10 percent. Defense, Space & Security’s revenue for 2014 is expected to be between $30 and $31 billion with operating margins of approximately 9.5 percent.
Boeing Capital Corporation expects that its aircraft finance portfolio will continue to decline in 2014, as new aircraft financing of less than $0.5 billion is expected to be lower than normal portfolio runoff through customer payments and depreciation. Boeing’s 2014 R&D forecast is approximately $3.2 billion, and capital expenditures for 2014 are expected to be approximately $2.5 billion. Boeing’s effective tax rate is expected to be approximately 31 percent in 2014, which assumes the extension of the research and development tax credit.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
Core operating earnings is defined as GAAP earnings from operations excluding unallocated pension and post-retirement expense. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of unallocated pension and post-retirement expense. Unallocated pension and post-retirement expense represents the portion of pension and other post-retirement costs that are not recognized by business segments for segment reporting purposes. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude unallocated pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on page 14.
Core Operating Margin and the Increase in Core Operating Earnings Excluding A-12 Settlement Charge
The company is disclosing the core operating margin and the increase in core operating earnings in the fourth quarter of 2013 over the fourth quarter of 2012 excluding the A-12 settlement charge in the fourth quarter of 2013. Management believes it is useful to occasionally exclude certain items that are not reflective of underlying performance and that can distort period to period performance comparisons. Management uses similar measures for purposes of evaluating and forecasting underlying business performance. A reconciliation between the GAAP and non-GAAP measures is provided on page 14.
Operating Cash Flow Before Pension Contributions
Operating cash flow before pension contributions is defined as GAAP operating cash flow less pension contributions. Management believes operating cash flow before pension contributions provides additional insights into underlying business performance. Management uses operating cash flow before pension contributions as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and operating cash flow before pension contributions.
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow less capital expenditures for property, plant and equipment additions. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8KZF N50217 (msn 36137) became JA12KZ on delivery.
ANA (All Nippon Airways) (Tokyo) is planning to operate its last revenue flight (NH 126) with the Boeing 747-400 on March 31 between Naha, Okinawa and Tokyo (Haneda) according to ZipanguFlyer. The last revenue flight is scheduled to be operated with 747-481 (D) JA8961 (msn 25644). The last ANA Boeing 747-400s are the high-density domestic version of the Boeing 747-400 that seat 565 passengers and were developed specifically for the Japanese market.
Read the full report with all of the details from ZipanguFlyer: CLICK HERE
ANA introduced the Boeing 747 (the special short range 747SR-81) with JA8134 (msn 21605) with the hand over from Boeing on December 20, 1978. The first Boeing 747-281B (JA8175, msn 23502) came later on July 2, 1986. Trans-Pacific service was then launched to Los Angeles with the new type on July 16, 1986. Finally the first Boeing 747-481 (JA8094, msn 24801) joined the ANA fleet on August 28, 1990.
The Boeing 747 has faithfully served ANA for over 35 years. It will seem strange not to see a Boeing 747 with the company.
Copyright Photo: Marco Finelli/AirlinersGallery.com. Looking back in the past, Boeing 747-281B JA8181 (msn 23698) is seen at Rome (Fiumicino).
QANTAS Airways (Sydney) as previously reported, will close its Avalon, Victoria heavy maintenance base in March. Two Boeing 747-400s scheduled for overhauls in May will be sent to HAECO (Hong Kong) for the work according to the Australian. An international tender offer will determine future work. 300 workers are losing their jobs at Avalon.
Read the full report: CLICK HERE
Copyright Photo: John Adlard/AirlinersGallery.com. Boeing 747-438 VH-OJF (msn 24483) approaches the runway at the Sydney hub.
British Airways to return three GSS Boeing 747-8 freighters to Atlas Air Worldwide Holdings in April
Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York) has announced it intends to pursue new ACMI (aircraft, crew, maintenance and insurance) placement opportunities for three 747-8 Freighter aircraft currently operated for British Airways plc by Atlas Air Worldwide’s 49%-owned UK subsidiary, Global Supply Systems Limited (GSS).
The action follows notice from British Airways, a unit of International Consolidated Airlines Group, S.A., regarding British Airways’ strategic decision to exit dedicated cargo-freighter service and to return the aircraft to GSS in April 2014 pursuant to the terms of the existing ACMI agreement between the parties.
Effective with the termination of the agreement, the three 747-8Fs will be redelivered to the company by GSS. Through GSS, the company also will receive contractual early termination fees from British Airways.
Meanwhile Qatar Airways (Doha) will operate five Boeing 777F freighter flights between Hong Kong and London for IAG Cargo (British Airways) starting on May 1. IAG Cargo issued this statement:
IAG Cargo has announced it has signed a long-term commercial agreement with Qatar Airways to purchase capacity on Qatar Airways-operated air cargo freighters, effective from May 1, 2014.
Qatar Airways will operate five Boeing 777F flights a week between Hong Kong and London on behalf of IAG Cargo, providing continuity of service for IAG Cargo customers.
The agreement marks a transition for IAG Cargo and follows the company’s decision to transfer freighter operations from its current provider, Global Supply Systems.
IAG Cargo connects 350 destinations worldwide, serving the world’s economic hubs with cargo-friendly wide-bodied planes. Through its Constant Climate network, it has one of the largest networks globally for handling temperature-sensitive air cargo.
Qatar Airways is already a partner with IAG through the oneworld global alliance which it joined in October 2013. The airline is taking delivery of a further three Boeing 777F aircraft during 2014.
Top Copyright Photo: Rainer Bexten/AirlinersGallery.com. This decision will end British Airways World Cargo and Global Supply Systems. GSS operated Boeing 747-87UF G-GSSD (msn 37562) in British Airways World Cargo colors departs graceful from Cologne/Bonn.
Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 777-FDZ A7-BFA (msn 36098) of Qatar Airways Cargo taxies at Amsterdam.
IranAir (Tehran) has retired the last operating passenger Boeing 747-100 in the world. Boeing 747-186B EP-IAM (msn 21759) was ferried yesterday (January 8) from Mehrabad Airport (THR) in downtown Tehran (used for domestic flights) to nearby Imam Khomeini International Airport (IKA) southwest of Tehran (used for international flights) for storage in the cargo area. The flight lasted only 10 minutes on three operating engines and was flown by Captain Moghadam. EP-IAM is now grounded forever at IKA after almost 35 years of service
EP-IAM was delivered new from Boeing on August 2, 1979 and was flown its entire service life with the flag carrier of Iran. This is a testimony to Boeing for the durability of the airframe.
Thanks to Shahram (Shary) Sharifi for his eyewitness report from Iran.
In other news, IranAir restarted twice-weekly service from Mashbad to Bahrain on December 21, 2013.
Copyright Photo: Antony J. Best/AirlinersGallery.com. Boeing 747-186B EP-IAM taxies across the ramp at London’s Heathrow Airport.
Video: Window view of the takeoff from IKA on April 9, 2012.
Boeing (Chicago) set a company record in 2013 for the most commercial airplanes delivered in a single year with 648. The company’s unfilled commercial orders stood at 5,080 at the end of the year – also a new Boeing record.
Boeing also booked 1,531 gross commercial orders in 2013, a new company record and 1,355 net commercial orders in 2013, the second-largest number in company history.
In 2013, three programs set records for deliveries in single year:
- The 737 program delivered 440 Next-Generation 737s
- The 777 program delivered 98 airplanes
- The 787 program delivered 65 Dreamliners, now flying with 16 customers around the world
With the higher production rates achieved in 2013, all three Boeing Commercial Airplanes production sites in Everett and Renton, Washington and North Charleston, South Carolina also delivered a record number of airplanes.
Boeing’s leadership position in the twin-aisle market continued in 2013 with the launch of two new airplane programs. The 777X launched in November at the Dubai Air Show with 259 orders and commitments worth more than $95 billion at list prices. Boeing also launched the 787-10 Dreamliner, the most fuel-efficient jetliner in history, at the Paris Air Show in June.
Orders, deliveries and unfilled orders as of December 31, 2013, by program were as follows:
|Family||Gross Orders||Net Orders||Deliveries||Unfilled Orders|
Boeing Commercial Airplanes highlights in 2013 included:
- Boeing Delivers 7,500th 737
- Boeing, Southwest Airlines Announce Launch of 737 MAX 7
- Boeing Opens New Everett Delivery Center
- Boeing Delivers 1,000th Airplane to China
- Boeing Launches 787-10 Dreamliner
- Boeing Begins Assembly of 1st KC-46A Tanker Aircraft
- Boeing Flies First 787-9 Dreamliner
- Boeing Completes 737 MAX 8 Firm Configuration
- Boeing to Increase 737 Production Rate in 2017
- Boeing, GOL Airlines Announce Collaboration to Increase Sustainable Aviation Biofuel Supply in Brazil
- Boeing 787 Dreamliner Reaches 1,000th Order with Etihad Airways
- Boeing Launches 777X with Record-Breaking Orders and Commitments
- Boeing Delivers First 747-8 with Performance-Improved Engines
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8R7F N747EX (msn 35808) lands at Paine Field near Renton.
Cathay Pacific Airways (Hong Kong) and Boeing (Chicago) announced the airline has ordered an additional 747-8 Freighter and three 777-300 ER (Extended Range) airplanes. The order, valued at about $1 billion at current list prices, will bolster Cathay Pacific’s 747-8 Freighter fleet and 777-300ER fleet to 14 and 53, respectively.
Hong Kong’s flag carrier is in the midst of renewing its freighter fleet with newer, more efficient airplanes, while also looking to strengthen its position as a market leader in the air cargo business.
The 747-8 Freighter gives cargo operators the lowest operating costs and best economics of any large freighter airplane while providing enhanced environmental performance. At 250 feet, 2 inches (76.3 m) long — 18 feet, 4 inches (5.6 m) longer than the 747-400 Freighter — the 747-8 Freighter gives customers 16 percent more revenue cargo volume compared to its predecessor with nearly equivalent trip costs and lower ton-mile costs.
The Boeing 777 is the world’s most successful twin-engine, long-haul airplane. The 777-300ER is equipped with the world’s most powerful GE90-115B commercial jet engine, and can seat up to 386 passengers in a three-class configuration with a maximum range of 7,930 nautical miles (14,685 km).
Hong Kong’s flag carrier operates 55 777s, including 38 777-300 ERs and an all-Boeing freighter fleet that includes 13 747-8 Freighters. With this order, Cathay Pacific will have 21 777-9X airplanes, 15 777-300 ERs and one 747-8 Freighter on order with Boeing.
Top Copyright Photo: Nick Dean/AirlinersGallery.com. Brand new Boeing 747-867F B-LJI (msn 39247) lifts off the runway at Paine Field near Everett, Washington.
Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. The Stretch Triple Seven is becoming the mainstay of the Cathay Pacific long-range passenger aircraft fleet as the Boeing 747-400 replacement. Sleek Boeing 777-367 B-KPN (msn 36165) steadily climbs away from the runway at Los Angeles International Airport (LAX).
Boeing (Chicago) yesterday (December 18) delivered the first 747-8 (747-867F B-LJK, msn 43394) to Cathay Pacific Airways (Hong Kong) with performance-improved GEnx-2B engines as part of the airplane’s Performance Improvement Package (PIP.) B-LJK was the first 747 to deliver with the PIP engines.
The engine is the first of the package’s three improvements to enter service. The two other components, Flight Management Computer (FMC) software upgrades and reactivation of the horizontal tank fuel system on the 747-8 Intercontinental, are expected to enter service later this month and in early 2014, respectively.
The PIP engine improves the airplane’s efficiency by 1.8 percent. “With this improvement, 747-8 customers will use roughly 30 less semi-sized trucks of fuel per airplane per year,” said Bruce Dickinson, 747-8 chief project engineer and vice president.
All three PIP components can be retrofitted on the 747-8. The tail fuel reactivation is applicable only for the 747-8 Intercontinental and the FMC upgrades can also be made to 747-400s.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Sister ship Boeing 747-867F B-LJJ (msn 39246) climbs away from the runway at Los Angeles International Airport.
Atlas Air Worldwide Holdings, Inc. (New York) has announced that its Atlas Air, Inc. (New York-JFK) unit has entered into a contract with BST Logistics (Hong Kong) Company Limited (BST Logistics), a business partner of Navitrans International Freight Forwarding Co., Ltd., to provide Boeing 747-8 freighter service.
The contract is for one aircraft under an ACMI (Aircraft, Crew, Maintenance and Insurance) agreement, with service expected to begin in February 2014 and operating in key global routes connecting the U.S., Europe and Asia.
BST Logistics provides dedicated airfreight services on a global basis and serves some of the largest shippers in the world.
Copyright Photo: Nick Dean/AirlinersGallery.com. Atlas Air’s Boeing 747-87UF N854GT (msn 37566) departs from Paine Field near Everett.
Cargolux Airlines International S.A. (Luxembourg) has announced the launch of a weekly service to Bamako, the capital of Mali, from December 5, 2013. The flights are operated with the airline’s Boeing 747 freighters which offer main deck capacity for the transport of airfreight supplies that support the local industries in the areas of natural resources, telecommunications, healthcare and pharmaceutical products, perishables and general appliances.
In 2010, Bamako Airport inaugurated a new cargo terminal with a yearly capacity of 10,000 tons and extended the runway to 3,180 meters, enabling the operation of large aircraft, such as Cargolux’s 747 freighters.
Flight CV 7124 is operated every Thursday on the routing Luxembourg – Bamako – Lagos – Libreville – Nairobi – Manston – Luxembourg. Departure in Luxembourg is scheduled for 16.30 GMT with arrival in Bamako at 21:40 GMT. With this service, Cargolux connects another African destination to its worldwide network and offers shippers fast and reliable airfreight solutions to a market with growing importance.
Cargolux’s African network now covers 13 destinations that show promising export potential with strong shipments for the oil and gas industry. Cargolux also offers direct services between the United States and Africa.
Previously the cargo carrier started weekly service to Buenos Aires via Campinas (Viracopas) near Sao Paulo on November 13.
Copyright Photo: TMK Photography/AirlinersGallery.com. Boeing 747-4R7F LX-VCV (msn 34235) approaches Johannesburg for landing.
Cathay Pacific to replace its Johannesburg and San Francisco Boeing 747-400 routes on October 26, 2014
Cathay Pacific Airways (Hong Kong) has been progressively replacing its Boeing 747-400s from passenger service especially on long-haul routes.. The company is currently planning to replace the last two long-range Boeing 747-400 passenger routes to Johannesburg and San Francisco with newer Boeing 777-300 ERs on October 25, 2014 per Airline Route.
Update: This retirement date has now been moved up to August 31, 2014 per Airline Route.
This will end long-haul passenger service of the type with CPA. It is unclear at this time if the airline will continue short-haul Asian service of the aircraft after this date.
In addition, the company will end Boeing 747-400 passenger service to London (Heathrow) on December 31, 2013.
Cathay Pacific continues to operate an extensive Boeing 747 freighter operation.
Copyright Photo: Keith Burton/AirlinersGallery.com. Boeing 747-467 B-HOP (msn 23815) approaches London (Heathrow) when it once served that route.
Atlas Air (New York-JFK) operates the fleet of four Boeing 747 Dreamlifters under contract for Boeing, ferrying parts for Boeing between its various supply points.
Last night (November 20) a Drealifter operated by Atlas Air was inbound for McConnell Air Force Base in Wichita, Kansas. However the modified Jumbo landed instead at the nearby Colonel James Jabara Airport run by the city of Wichita according to this report by Reuters.
The pilots had taken off from New York’s John F. Kennedy International Airport but mistook the GA airport for the air force base.
The Colonel James Jabara Airport (ICAO: KAAO, FAA LID: AAO) has only one runway that is 6,101 feet long with an ATC control tower and is about 9 miles (14 km) from McConnell.
Atlas Air has reassured airport officials the runway is of sufficient length to permit a safe departure today.
Read the full report: CLICK HERE
Copyright Photo: Ken Petersen/AirlinersGallery.com. The specially-modified Boeing 747-409LCF DreamLifter N780BA (msn 24130) is pictured on the ramp at New York (JFK).
Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) today outlined details of a new joint venture flight schedule beginning summer 2014, aligning their services and offering more flight choices for travelers on both sides of the Atlantic.
The two airlines are putting the customer at the forefront of their partnership with the new schedule that starts March 30, 2014, combining their slots at London Heathrow to offer maximum customer convenience, particularly for business travelers.
Beginning, April 2, 2014, Delta will move its arrival and departure terminal for several important business markets to join Virgin Atlantic in Heathrow Terminal 3. This includes its London to New York-JFK, London to Boston, and new London to Seattle/Tacoma services and means the two airlines will co-locate on all its New York and Boston flights to London Heathrow. The move will allow for convenient connections and a seamless customer experience for customers flying with Virgin and Delta, including access to Virgin Atlantic’s award winning Clubhouse for all business class passengers.
Delta, in cooperation with Virgin Atlantic, will also operate a second daily service between London Heathrow and Detroit Metropolitan Airport effective June 1, 2014. The service will be particularly appealing to corporate customers needing an early morning arrival into London while offering more schedule choice for customers between London and the U.S. Midwest.
This additional flight will complement Delta’s previously announced new West Coast route between Seattle/Tacoma and London Heathrow, which will launch on March 29, 2014.
Virgin Atlantic is also making significant schedule changes. It is moving its VS1 Heathrow to Newark service from a late afternoon departure to a morning departure. This flight will be particularly attractive to business travelers: it will allow ‘same-day meetings’ to be held in the New Jersey area, while an earlier departure on the return flight means passengers can be in central London for the start of the working day.
This service is part of nine daily flights between London Heathrow and the New York area by the joint venture partners. The new schedule will include departures every 30 minutes during the early evening peak and then hourly until 10.30 p.m. from New York-JFK to London Heathrow and a spread of seven daily flights from London Heathrow to New York-JFK, including two late afternoon and early evening departures. It also includes two conveniently timed departures to and from Newark.
Virgin Atlantic has also retimed its Heathrow to Boston service to depart two hours later in the afternoon. This offers more flexibility for the two airlines’ customers with Delta’s Heathrow to Boston service departing in the morning. Virgin Atlantic’s evening departure from Boston will also move two hours later, giving greater schedule choice to travelers.
In September, Delta and Virgin Atlantic welcomed the decision by the U.S. Department of Transportation (DOT) to approve the carriers’ joint venture by granting antitrust immunity on routes between North America and the UK. This ruling confirmed the clear consumer benefits of the partnership, enabling the airlines to deepen their cooperation, offering more flight choices for travelers on both sides of the Atlantic and improving the travel options for business customers in the New York to London market.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Delta’s Airbus A330-223 N855NW (msn 621) arrives in Los Angeles.
Bottom Copyright Photo: Eddie Maloney/AirlinersGallery.com. Virgin Atlantic Airways’ Boeing 747-443 G-VROS (msn 30885) lands in Las Vegas.
Is Evergreen International Airlines planning to close its doors on November 30? The company says no but is exploring other options
Evergreen International Airlines (McMinnville, Oregon and Marana, Arizona) despite a public denial by its founder and CEO that the rumors are false, it has been reported in the local Oregon media as planning to lay off 131 employees and ceased operations on November 30. The company recently sold off its helicopter division as we reported as it attempts to reorganize and seek new “strategic alternatives” and partners.
It is unclear if the Evergreen Wings and Waves Waterpark and the Evergreen Aviation and Space Museum would also be affected if any final decision is made.
Read the full report from the The Oregonian: CLICK HERE
The company is privately held and issued this statement:
As has been previously reported in the press, Evergreen’s business has been adversely impacted over the past several years by decreased demand in military spending and weakness in global economic markets. Management has moved to aggressively address these challenges, including through the divestiture of businesses and assets and the significant reduction of secured debt. Evergreen is in discussions with its significant constituencies and is exploring available strategic alternatives with those constituencies. While Evergreen generally does not comment on market rumor or conjecture, rumors that a decision has been made to cease operations at this time are false. Evergreen remains committed to continuing to address the current business environment with its customers.
Delford M. Smith
Chief Executive Officer,
Evergreen International Aviation, Inc.
Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Evergreen International Airlines’ Boeing 747-230F N490EV (msn 24138) touches down in Stockholm (Arlanda).
Air France‘s (Paris) CFO Philippe Clavia complained in a letter to Alitalia (2nd) (Rome) about how the Italian airline failed to inform its airline partners, namely the Air France-KLM Group, about key meetings concerning a new capital infusion. Although the group finally voted for the recent infusion of capital, Air France is upset about how the whole event was handled according to this report by Reuters.
Further, Air France-KLM was not provided any written information, just ”orally and in a cryptic way”, often just in Italian, the newspaper Il Messaggero reported, quoting the letter.
Read the full report: CLICK HERE
Copyright Photo: Christian Volpati/AirlinersGallery.com. Boeing 747-428 F-GITH (msn 32868) of Air France prepares to taxi from the Charles de Gaulle (CDG) Paris hub. Air France is planning to phase out its last Boeing 747-400 passenger aircraft in 2016.
Boeing (Chicago) has just announced that it will adjust the production rate for the 747-8 program from 1.75 airplanes to 1.5 airplanes per month through 2015 because of lower market demand for large passenger and freighter airplanes.
The company expects long-term average growth in the air cargo market to begin returning in 2014, and forecasts global demand for 760 large airplanes (such as the 747-8) over the next 20 years, valued at $280 billion.
The 747-8 family provides airlines with double-digit improvements in fuel efficiency, operating costs and emissions, while being 30 percent quieter and adding more capacity. To date, the 747-8 has accumulated 107 orders for passenger and cargo versions, 56 of which have been delivered.
The first delivery at the new production rate is expected in early 2014. The production rate change is not expected to have a significant financial impact.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8KZF N50217 (JA12KZ) (msn 36137) climbs away from the runway at Paine Field near Everett, WA.
Transaero Airlines (Moscow) has announced that its interline agreement with WestJet (Calgary) has taken effect offering Transaero passengers new opportunities for travel from Moscow. Via connections in Toronto (Pearson) and Los Angeles, Transaero passengers can now access the extensive WestJet network throughout Canada, the United States, Mexico, the Caribbean, and Central America.
Now Transaero passengers are able to purchase tickets on connecting flights from Moscow via Toronto to destinations within WestJet’s route network in Canada, including Vancouver, Calgary, Edmonton, Montreal, Ottawa, Winnipeg, and many others.
In the near future, in addition to WestJet’s domestic routes, Transaero will offer its passengers connecting flights via Toronto to many WestJet’s destinations outside of Canada such as Phoenix, Honolulu, Kailua-Kona, Kahului, Lihue, Los Angeles, Palm Springs, San Diego, San Francisco, Anaheim, Las Vegas, New York, Miami, Orlando, Tampa, Fort Lauderdale, Fort Myers, Myrtle Beach, Bahamas, Bermuda, the Dominican Republic, Costa Rica, Cuba, Mexico, and Jamaica.
The agreement also provides the opportunities for connecting flights via Los Angeles with WestJet flights to Vancouver, Calgary, and Edmonton.
In other news, Transaero will start a new daily route with Boeing 737-800s between Moscow (Vnukovo) and Istanbul (Ataturk) on October 27.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Transaero Airlines’ Boeing 747-446 EI-XLJ (msn 27646) arrives at the resort destination of Antalya, Turkey.
Atlas Air Worldwide Holdings, Inc. today announced that its Atlas Air, Inc. (New York) unit has entered into a contract with Astral Aviation Limited (Nairobi), a Kenya-based cargo airline, to provide Boeing 747-400 Freighter service.
The contract is for one aircraft under an ACMI (Aircraft, Crew, Maintenance and Insurance) agreement, with service expected to begin in the next few weeks. This is the first 747-400F in Astral Aviation’s global network, and it will provide all-cargo operations between Europe and Africa.
Astral Aviation operates in partnership with UK-based ANA Airline Management Limited. ANA specializes in the development and operation of all-cargo aircraft across a wide range of scheduled routes as well as providing air charter capacity on a worldwide basis to the various airlines it works in partnership with. ANA was founded in 1985 and has offices throughout Europe, Africa and North America.
Copyright Photo: Tony Storck/AirlinersGallery.com. Atlas Air’s Boeing 747-47UF N492MC (msn 29253) climbs beautifully away from Anchorage International Airport.
Air France (Paris) has announced a new round of job cuts as the airline is headed towards its sixth consecutive annual operating loss due to weakening air travel demand. The carrier is plan to cut another 2,800 jobs in 2014. The airline is already cutting around 5,120 positions by the end of this year according to Reuters.
The airline issued this statement and update on its recovery plan:
Air France management presented an update on Transform 2015 to the Central Works Council.
Air France’s recovery has begun and Transform 2015 is taking effect. In the first half, the implementation of measures led operating income to increase by 100 million euros. However, in 2013, the Air France Group will not achieve its objective of returning to equilibrium.
To ensure the sustainability of the Company and to continue investing for our customers, the return to equilibrium in 2014 is essential. This return to equilibrium requires the deployment of all action plans and the completion of Transform 2015, which requires additional measures to reduce costs and accelerate the recovery of short and medium-haul operations and cargo.
ADDITIONAL MEASURES TO REDUCE COSTS ACROSS THE COMPANY
The number of excess staff has been estimated at 2,800 people for 2014. New Voluntary Departure Plans will be implemented. They will be thoroughly discussed with staff representatives and unions as from October 4. In addition, Air France will continue its policy of wage moderation in 2014 and a better adaptation of business costs to the seasonality of operations will be required.
ACCELERATED RECOVERY OF SHORT AND MEDIUM-HAUL OPERATIONS AND CARGO
Concerning short and medium-haul operations, the Air France Group intends to maintain its strong presence on the French market. It has therefore decided to develop the activity of Transavia France on departure from Paris-Orly, to adjust its domestic point-to-point network and provincial bases, to increase seasonal capacity and to reorganize French stations.
• Transavia France, which will operate five additional aircraft as from the summer 2014 season, will expand its offering to new high-potential European destinations on departure from Paris-Orly. In parallel, the Air France’s point-to-point network will be adjusted downwards. Also, the seasonal adjustment of the schedule implemented in 2013 at the provincial bases has been a success and will be continued in 2014.
• For all French stations, a change in production methods is necessary to ensure the Air France Group is in line with market standards, to better handle customers and reduce costs in a sustainable way. This will induce a reorganization of processes and a greater use of outsourcing. The objectives, station by station, will be specified at the Central Works Council meeting on 4 October.
Concerning cargo operations, the contribution of hold cargo remains essential to the long-haul economy. Furthermore, the cargo capacity of holds on passenger aircraft carries an increasing share of global air freight and the global air freight market is permanently in overcapacity. In this context, Air France has decided to refocus its cargo fleet on its two Boeing 777F. The Boeing 747 all-cargo aircraft will leave the fleet in 2015, at the same time as the 747 will leave the passenger fleet.
In addition, cargo operations at Paris-Orly, which have never reached a sufficient size, are currently operating at non-market costs. For this reason, an outsourcing project will be implemented in 2014.
AMBITIOUS DEVELOPMENT OF GROWTH SECTORS
Growth will continue on long-haul routes and new routes will continue to be launched. In parallel, the renewal of the long-haul fleet will be accelerated with the early retirement of the Boeing 747 by 2015 and the arrival of the Boeing 787 and Airbus A350, respectively in 2017 and 2018.
At Paris-Charles de Gaulle, a new “Future hub” plan is being set up to enhance the hub’s attractiveness and competitiveness. It will be based in particular on the development of technological changes in passenger operations, as well as the move upmarket of Air France products and services.
In the engineering and maintenance sector, Air France will continue its development of engine and equipment products with its external customers. This strategy is contributing to Air France’s recovery thanks to lower maintenance costs and a positive contribution to operating income.
“Transform 2015 is taking effect and has had positive results in 2012. Air France is continuing its thorough transformation based on the commercial development of its markets with high growth potential, the move upmarket of its products and services and the reduction of its costs. I intend, together with all Air France staff, to concentrate on customer service and the successful recovery of our Company” declared Frédéric Gagey, Chairman and Chief Executive Officer, Air France.
Read the analysis by Reuters: CLICK HERE
Copyright Photo: Ole Simon/AirlinersGallery.com. All of the Air France Boeing 747s, both passenger and cargo, will be retired by 2015. Boeing 747-428 F-GITF (msn 25602) taxies at the Paris (CDG) hub.
Centurion Cargo (formerly Centurion Air Cargo) (Miami) is getting ready to take delivery of this former Cargolux International Boeing 747-400F freighter. The cargo airline currently operates McDonnell Douglas MD-11 freighters.
Copyright Photo: Kok Chwee (K.C.) Sim/AirlinersGallery.com. Pictured today at Singapore, this Boeing 747-4R7F still wears the LX-KCV (msn 25868) registration.
ANA (All Nippon Airways) (Tokyo) is planning to retire the last Boeing 747-400 on March 29, 2014. The last route is tentatively schedule as a flight between Naha, Okinawa and Tokyo (Haneda) per Airline Route.
The airline is currently operating five domestic models on domestic routes in Japan.
ANA added its first Boeing 747SR-81 (JA8133) (above) on December 20, 1978 for its high-density domestic routes. ANA also added its first Boeing 747-281B (JA8174) (below) on June 25, 1986.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747SR-81 JA8145 (msn 22291) taxies at the Haneda Airport hub.
Bottom Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 747-281B JA8181 (msn 23698) joined the ANA fleet on December 22, 1986 and migrated to NCA on May 26, 1999 as a freighter.
Lufthansa (Frankfurt) will introduce the relatively new Boeing 747-800 on the Frankfurt-Mexico City route on September 2, 2013 according to Airline Route.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-830 D-ABYA (msn 37827) climbs away from the runway at Los Angeles International Airport.
Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York-JFK) today announced second-quarter 2013 diluted earnings per share in line with expectations presented at the company’s investor-analyst day on May 30 and reaffirmed its full-year adjusted diluted earnings per share outlook of approximately $4.80.
For the three months ended June 30, 2013, adjusted net income attributable to common stockholders totaled $20.4 million, or $0.79 per diluted share, compared with $31.2 million, or $1.18 per diluted share, for the three months ended June 30, 2012.
On a reported basis, second-quarter 2013 net income attributable to common stockholders totaled $20.1 million, or $0.78 per diluted share, compared with $30.9 million, or $1.16 per diluted share, in the second quarter of 2012.
Free cash flow increased to $64.6 million in the second quarter of 2013 from $54.2 million in the second quarter of 2012.
Revenue, volume and profitability growth in our core ACMI business during the second quarter were driven by our new 747-8Fs, with five additional -8F aircraft in service compared with the second quarter of 2012, as well as the continued ramp up of CMI flying for Boeing and DHL Express.
Improved ACMI segment earnings during the period benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments.
In AMC Charter, a reduction in cargo and passenger block hours, lower average cargo and passenger revenue per block hour, and a reduction in the number of one-way AMC missions led to a decline in segment contribution. Lower average passenger revenue per block hour during the period stemmed from a higher proportion of passenger flying on smaller-gauge 767 aircraft, which we added to supplement our wide-body 747-400 passenger service and enhance our share of military passenger business.
Segment results in Commercial Charter primarily related to a reduction in yields driven by soft second-quarter global charter-market conditions.
Results in the second quarter were also affected by a reduction in capitalized interest on 747-8F aircraft that entered service.
Adjusted and reported earnings for the second quarter of 2013 included an effective income tax rate of 32.3%, reflecting the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business.
For the six months ended June 30, 2013, adjusted net income attributable to common stockholders totaled $26.3 million, or $1.01 per diluted share, compared with $44.9 million, or $1.69 per diluted share, for the six months ended June 30, 2012.
On a reported basis, first-half 2013 net income attributable to common stockholders totaled $40.1 million, or $1.54 per diluted share, compared with $43.7 million, or $1.65 per diluted share, in the first half of 2012.
Free cash flow in the first six months of 2013 increased to $107.0 million from $55.2 million in the first half of 2012.
Cash, Cash Equivalents and Short-Term Investments
At June 30, 2013, our cash, cash equivalents and short-term investments totaled $367.5 million, compared with $419.9 million at December 31, 2012.
The change in cash, cash equivalents and short-term investments reflected cash provided by operating and financing activities offset by cash used for investing activities.
Net cash used for investing activities in the first six months of 2013 primarily related to the purchase of two 747-8F aircraft as well as a 777-200LRF aircraft for our Dry Leasing business.
Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. These proceeds were partially offset by payments on debt obligations and net payments under accelerated share repurchase (“ASR”) programs.
In mid-May, we entered into an ASR with a financial institution for the repurchase of our common stock for an aggregate purchase price of a minimum of $35.0 million up to a maximum of $44.0 million. As of June 30, 2013, we received delivery of an initial 615,791 shares pursuant to the program. This ASR is expected to conclude no later than mid-October.
Through the first six months of 2013, we repurchased a total of 1,519,092 shares, or 5.7%, of our outstanding common stock.
Future repurchases may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 747-47UF N408MC (msn 29261) taxies past the camera at Amsterdam.
Silk Way Airlines (Baku, Azerbaijan) and Boeing today announced an order for two Boeing 747-8 Freighters valued at $704 million at current list prices.
Silk Way Airlines currently operates Boeing 747-400 Freighters (see above) and 767-300 Freighters. It is considered as one of the leading cargo airlines in Central Asia providing full-fledged services to Europe and the United Kingdom and the Middle East, as well as the Far East including Korea, China and Hong Kong. In addition, it also serves international destinations through a network of alliances.
Copyright Photo: OSDU/AirlinersGallery.com. Boeing 747-4R7F 4K-800 (msn 29729) prepares to land at Moscow (Shereyetyevo).
China Airlines (Taipei) on June 7 introduced this new “Love and Hug” design on Boeing 747-409 B-18203 (msn 28711). The design displays some of the world’s endanger species. The artwork was created by Taiwanese artist Jimmy.
China Airlines has pledged 20 special logojets in the next five years!
In other news, China Airlines introduced nonstop twice-weekly Taipei-Honolulu Airbus A330 service on June 2.
Copyright Photo: Bernhard Ross/AirlinersGallery.com. B-18203 made its first visit to Frankfurt in the special design on June 17.
Boeing (Chicago) and and Korean Air (Seoul) today announced that the airline has agreed to purchase five 747-8 Intercontinental airplanes and six 777-300 ER (Extended Range) jetliners, valued at approximately $3.6 billion at current list prices. Boeing will work with Korean Air to finalize the order, at which time the order will be posted to Boeing’s Orders and Deliveries website.
Korean Air is the only airline in the world to order both the passenger and freighter variations of the 747-8. When today’s order is finalized, Korea’s flag carrier will have 10 747-8 Intercontinental airplanes on order. The airline has taken delivery of three of its seven 747-8 Freighters on order.
Korean Air currently operates a fleet of 90 Boeing passenger airplanes that consist of 737, 747 and 777 airplanes. The airline also operates an all-Boeing cargo fleet of 27 747-400, 747-8 and 777 Freighters. In February 2012, Korean Air became the first airline in the world to operate both the 747-8 and 777 Freighters.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Korean Air is already an operator of the Boeing 747-800F freighter. Korean Air Cargo Boeing 747-8HTF HL7609 (msn 37132) climbs briskly in the Southern California sky after departing from Los Angeles International Airport.
Bottom Copyright Photo: Royal S. King/AirlinersGallery.com. Boeing 777-3B5 ER HL7782 (msn 37643) lands at Paine Field near Everett.
Atlas Air starts operating a Boeing 747-800F freighter for Etihad Cargo, Miami becomes part of the round-the-world cargo route
Atlas Air (New York) on May 30 started operating its newest Boeing 747-800F for Etihad Cargo (formerly Etihad Crystal Cargo) (Etihad Airways) (Abu Dhabi). The fully-painted freighter will operate twice-weekly cargo services to and from Miami.
Etihad Airways announced its new round-the-world cargo flight:
The jointly operated routing began on May 30, connecting Etihad Cargo’s Abu Dhabi hub with destinations in Asia, the United States, South America and Europe.
Miami (US), Viracopos (Brazil), and Quito (Ecuador) will become part the round-the-world Abu Dhabi-Hong Kong-Chicago O’Hare-Miami-Viracopos-Quito-Amsterdam-Abu Dhabi freighter service offered with an Etihad Cargo-liveried Boeing 747-8F Freighter.
Earlier this month, Etihad Cargo signed a signed a multi-year Aircraft, Crew, Maintenance and Insurance (ACMI) agreement with Atlas Air to provide the Boeing 747-8F Freighter with its 138-ton cargo capacity to operate the new schedule.
The three new freighter destinations in the Americas will see Etihad Cargo’s network extend to 92 points across the globe. The carrier’s eight freighters operate to 28 of these destinations.
The Boeing 747-8F Freighter is the largest in Etihad Cargo’s current freighter fleet. The airline also operates three Boeing 777Fs, one Boeing 747-400ERF, one Boeing 747-400F and two Airbus A330-200Fs.
Etihad Cargo will take delivery of two additional freighters in 2013 and 2014, comprising two Airbus A330-200Fs.
Atlas Air previously made this announcement in May:
The 8th Boeing 747-800F freighter will fly on behalf of Etihad Cargo, the cargo arm of Etihad Airways, the national carrier of the United Arab Emirates, pursuant to a multi-year aircraft, crew, maintenance and insurance agreement that commences in May 2013.
The new contract between the companies follows a letter of intent announced on April 1, 2013, and complements an existing Boeing 747-400F ACMI arrangement between Atlas and Etihad. The aircraft will be operated in full Etihad Cargo livery.
Copyright Photo: Michael Bolden. The pictured Boeing 747-87UF N855GT (msn 37567) was delivered to Atlas Air on May 18, 2013. The Jumbo Freighter prepares to depart from Miami on its twice-weekly round-the-world cargo route.
Cargolux Airlines International (Luxembourg) on June 3 launched a new service between Atlanta and Munich via Luxembourg. The new weekly cargo route with be operated with Boeing 747-400F freighters.
The airline issued this statement:
Cargolux Airlines International S.A. on June 4 announced the introduction of a regular service between Atlanta and Munich via Luxembourg. Starting on June 3, 2013, at the eve of the Air Cargo Munich Exhibition and Conference, the latest addition to Cargolux’s expanding network of worldwide destinations will be served every Monday with a Boeing 747-400 Freighter.
The main import customer for the new Cargolux service is the German freight forwarder Senator International Spedition GmbH, a leading international freight forwarding company specialized in international freight, shipping, packaging and logistics. ‘Cargolux is a trusted and reliable partner who supports us in delivering first class global logistics services to our own customers. The Cargolux network offers us a wide array of options to accommodate with this weekly operation’, said Tim-Oliver Kirschbaum, CEO of Senator International based at the company’s headquarters in Hamburg.
While Cargolux has previously flown a number of charter flights from the Bavarian capital, this is the airline’s first regular airfreight service to and from Munich. Until now, the airline has relied on its trucking services to transport freight between its Luxembourg hub and Munich and earmarked for farther connections within its worldwide network.
Copyright Photo: Jens Polster/AirlinersGallery.com. Boeing 747-4R7F LX-SCV (msn 29733) arrives at Bangkok.
Boeing (Chicago) yesterday (May 29) celebrated the 50th delivery of a 747-800. Lufthansa (Frankfurt), the launch customer of the passenger version, took delivery of the milestone aircraft almost one year after the first revenue flight of the 747-800 Intercontinental. It is the airline’s seventh 747-8 and its 82nd 747.
Boeing delivered the first 747-800 Intercontinental to Lufthansa in April 2012. The airplane entered service on June 1, 2012 with a flight from Frankfurt, Germany to Washington (Dulles), D.C. Cargolux Airlines took delivery of the first 747-800 Freighter in October 2011. To date, 35 Freighters and 15 Intercontinentals, including eight of the Boeing Business Jet version, have been delivered.
Top Copyright Photo: Boeing. Pictured at a soggy Paine Field, Boeing 747-830 D-ABYI (msn 37833) was handed over to the carrier on May 29.
Bottom Copyright Photo: Joe G. Walker/AirlinersGallery.com. Another view of D-ABYI arriving at Paine Field on May 18.
Lufthansa to change take-off procedures on June 1 to lower fuel consumption and reduce CO2 emissions
Lufthansa (Frankfurt) has issued this statement about new take-off procedures for its flights outside of Germany:
Lufthansa is set to change its take-off procedure for all departures outside Germany, thereby implementing worldwide standards. As of June 1, 2013, the altitudes for using the climb thrust and for further accelerating Lufthansa aircraft that are taking off will change from 1,500 feet (approx. 457 metres) to 1,000 feet (approx. 305 metres). This procedure is standard at most German and international airports and is already used by many airlines as it leads to lower fuel consumption and a reduction in CO2 emissions. At Frankfurt Airport, many airlines today are already benefiting from this take-off procedure.
Before it is introduced at German airports, the effects of the more level take-off will first be examined in a sound measurement test phase. Lufthansa expects the effects to be positive overall, as aircraft will be in a low-resistance, and therefore less noisy, configuration at an earlier stage. This assumption will be tested at Frankfurt Airport in a trial run from 1 July until 30 September 2013 by measuring selected flights, while all other flights will take off as before for the purpose of comparison. The sound measurements will be evaluated in co-ordination with the independent Airport and Region Forum (“Forum Flughafen und Region”). A scientific study was previously commissioned at the German Aerospace Center, which predicted only minimal sound changes as a result of the new take-off procedure.
The objective of this step-by-step process is to transparently record and evaluate reliable measurement data for noise levels during the new procedure. Once the data has been analysed, it will be decided whether the 1000-foot acceleration will be introduced at German airports.
What does 1000-foot acceleration mean?
After an aircraft takes off from the runway, it usually ascends at a constant speed with the flaps extended until it reaches a certain altitude. Modern aircraft generally do not use the maximum thrust available at this point, but rather a reduced level of take-off thrust. When the aircraft reaches an initial target altitude, the engines’ thrust switches to climb thrust. As the aircraft continues to take off, it has to accelerate so that the flaps can be retracted and it can climb to its cruising altitude at a higher speed. The altitude at which the speed increase begins is called the acceleration altitude.
By changing these two altitudes, the wind resistance decreases when the flaps are retracted, thus lowering fuel consumption. Lufthansa expects that changing the procedure in Frankfurt alone would save around 2,200 tons of fuel per year. This would mean around 7,000 tons fewer CO2 emissions. The benefit for the environment is much greater worldwide: approx. 6,000 tons less kerosene, or around 18,000 tons less CO2.
A reduction in the acceleration altitude from 1,500 to 1,000 feet is permitted under ICAO regulations and is already standard practice at many airlines. Any procedural changes to an airline’s operations manual must be notified to the national supervisory authority. For German airlines, this is the German Federal Aviation Authority (LBA). The LBA and the German Federal Ministry of Transport, Building and Urban Development have already granted Lufthansa permission to change the procedure.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-830 D-ABYF (msn 37830) climbs away from Los Angeles International Airport.
Video: Lufthansa commercial: “These Germans”:
Sunrise Airlines (Sarasota/Bradenton) is the proposed paper airline of Stephen Miller and his wife Hannah. The residents of Sarasota, Florida still hope to raise $30 million to launch a new airline with an initial fleet of four Boeing 737-400s. Stephen Miller is a former executive of Oasis Hong Kong Airlines (Hong Kong). The couple recently gave an update to the Airport Authority Board on its business plan.
The proposed first phase would launch nonstop routes from Sarasota/Bradenton (SRQ) to Philadelphia, Indianapolis, Baltimore/Washington , Detroit, Boston, Pittsburgh, Chicago (Midway) and Newark.
Meanwhile departures at SRQ have declined by 38 percent in the past six years. Continental Airlines (now United Airlines) and AirTran Airways (now owned by Southwest Airlines) dropped SRQ during this period.
This new paper airline should not be confused with Sunrise Airways of Haiti.
Read the full article from Bradenton.com: CLICK HERE
Copyright Photo: Antony J. Best. The proposed tail design of Sunrise Airlines borrows on the colorful livery of Oasis Hong Kong Airlines (below) which operated from 2006 to 2008.
Transaero Airlines (Moscow) has issued the following short statement concerning its financial performance during 2012.
Transaero Airlines has published its financial results under RAS for 2012 which demonstrate the Company’s growth.
• Revenue from all activities in 2012 reached RUB 97.6bln, 13% more than in 2011
• Traffic revenue from in 2012 made up RUB 90.3bln, a 35% increase on 2011
• Revenue from asset transactions decreased by 64% and reached RUB 6.8 bln
• The Company’s revenue grew faster than prime costs and expenses.
• Transaero’s sales revenue increased 2.9 times over 2011, to RUB 7 bln
Net profit reached RUB 902 million ($28.7 million), a 51% decrease over 2011. The Company’s profit was mainly ensured by revenues from the main carrier’s activities. Transaero has achieved these results amid a significant growth of air fuel price, social payment and taxes.
In other news, the Russian airline added twice-weekly Boeing 737-500 service from St. Petersburg to Kaliningrad on May 12 in competition against Rossiya Airlines per Anna Aero.
Kaliningrad is a seaport city and the administrative capital of the Kaliningrad Oblast, the Russian exclave located between Poland and Lithuania on the Baltic Sea. This enclave is geographically separated from the rest of Russia.
Copyright Photo: Andi Hiltl/AirlinersGallery.com. Boeing 747-446 EI-XLD (msn 26360) approaches the Turkish resort destination of Antalya.
Jumbo Stay (Jumbo Hostel) (Stockholm) is now offering the opportunity to stay and now dine on the wing of a Boeing 747 based at Stockholm’s Arlanda Airport. The company is now advertising the following:
“Jumbo Stay is not just a hostel, its also an exciting place to go on an excursion for the whole family and for aviation enthusiasts. Non house guests are very welcome to have a look inside the airplane and to learn abouts its history. In our café you can purchase breakfast, coffee, cookies, ice cream, sandwiches and warm meals.
For the best view of the airplane and of the taxiway-runway, you will now have the possibility to walk along our left wing observation deck and experience the feeling of standing on top of a real Jumbo Jet’s wing.
Everybody is welcome to come and enjoy the view and to have a cup of coffee!”
The preserved Boeing 747-212B was originally delivered to Singapore Airlines as 9V-SQE (msn 21162) on March 30, 1976. However the airframe has also served with Pan Am (N727PA), Nationair (Canada) (C-FNXP), Garuda Indonesia, Cathay Pacific, Tower Air (N514DC and N620FF), Air Club International (C-GCIH), Transjet Airways (SE-RBN), Northeast Airlines (3D-NEE) and Jet Midwest (N981JM).
For more information: CLICK HERE
Copyright Photos: Stefan Sjogren. The Jumbo now carries advertising. Visitors can now have breakfast, lunch or even dinner on the wing of Jumbo Hostel at Stockholm Arlanda. You can see a fence on the wing is now protecting visitors from falling off the Boeing 747-212B.
Below is a view of the wing walking installation. Tables and chairs are provided on the wing!
In the front of the plane there is an elevator and stair case connecting to the main and upper decks of the Jumbo with the ground level.
Lufthansa Group (Lufthansa) (Frankfurt) reported its net loss for the first quarter widened to $602 million, up from a loss of $516.8 million in the same quarter a year ago. the first quarter is usually the weakest quarter for the carrier.
The airline issued this statement:
In the traditionally weak first quarter, Deutsche Lufthansa AG recorded an operating result on a par with last year at EUR -359m. The operating result includes restructuring costs of EUR 64m from the SCORE programme. Earnings improvements in the operating segments helped the Group make up for the extra costs. The net result for the period fell by 16.5 per cent to EUR -459m due to impairment losses and other valuations as of the reporting date. At EUR 6.6bn, revenue for the Lufthansa Group in the first quarter remained stable.
“We took another step towards our target of sustainable earnings improvements in the first quarter. Nearly all the Group companies improved their result,” explained Simone Menne, Member of the Executive Board, responsible for Finances and Aviation Services at Deutsche Lufthansa AG. “We are firmly on course with our SCORE programme.”
In operational terms, the Group improved its result by a total of EUR 95m in the Passenger Airline Group, Logistics, MRO, Catering and IT Services segments. Lufthansa German Airlines achieved the greatest improvement in the operating result, with an increase of EUR 77m. Thanks to a notable reduction in the number of flights and its optimised capacity management, the company boosted the load factor of its aircraft in the first quarter to 75.5 per cent and at the same time increased its yields. The strike by Lufthansa ground staff on 21 March depressed the operating result for Lufthansa German Airlines, as did high fuel costs and the long winter, which also weighed on the other airlines in the Lufthansa Group.
At the end of the first quarter 2013, Lufthansa German Airlines reported an operating loss of EUR 292m. At SWISS, the operating result came to EUR -16m, compared with EUR -3m in the same quarter last year. Austrian Airlines improved its operating result by EUR 11m to EUR -56m. Overall, the operating loss for the Passenger Airline Group segment improved to EUR -363m.
The Lufthansa Group also improved its operating result in the Logistics segment. Lufthansa Cargo increased its operating profit, in part thanks to targeted capacity management and lower depreciation and amortisation. At the end of the first quarter, the figure for the segment was EUR 27m, a rise of EUR 7m. The operating profit for the MRO segment was up by EUR 16m to EUR 81m. Lufthansa Technik adopted some 200 individual measures as part of SCORE in the first quarter, which by 2015 are intended to improve the organisation of administrative functions and align them better with customer needs. LSG SkyChefs improved its operating result by EUR 9m, posting an operating profit of EUR 3m for the period January to March. In the IT Services segment, Lufthansa Systems earned an operating profit of EUR 3m, compared with EUR 4m in the same quarter last year.
Given the improvement of the operating results for the Group companies in the first quarter, the positive contributions by SCORE and stable demand in the passenger business, the Group confirmed its earnings outlook for the year 2013. The operating profit for the Lufthansa Group in 2013 is predicted to be higher than the EUR 524m achieved last year. Positive earnings contributions from SCORE should not obscure the need for further change, however, emphasised Simone Menne, adding, “In competition with well-funded competitors, especially from the Middle East and Far East, and with low-cost airlines in Europe, we need new structures that will allow us to generate higher profits again. Putting the agreed measures into practice remains a challenge. We nevertheless intend to pursue our chosen path and shape our future with the required perseverance.”
The first quarter of 2013 in figures
Revenue for the Lufthansa Group in the first quarter of 2013 came to EUR 6.6bn – an increase of 0.1 per cent on the previous year. Traffic revenue declined by 0.2 per cent to EUR 5.3bn. Overall, the Group’s operating income went up to EUR 7.2bn in the reporting period, an increase of 0.3 per cent.
Operating expenses rose by 1.7 per cent in the first quarter to EUR 7.7bn. Fuel costs climbed by EUR 36m to EUR 1.7bn. This represents an increase of 2.2 per cent. Included in this amount is a negative contribution of EUR 25m from fuel hedging. Fees and charges fell by 2.2 per cent on the previous year, due to a lower number of flights.
In the first quarter, the Lufthansa Group reported an operating result on a par with the previous year of EUR -359m. To facilitate comparison, the operating result for the same quarter last year was adjusted by EUR 22m following the amendments to accounting standard IAS 19. Following this adjustment, the result for the first quarter of 2012 also came to EUR -359m.
The net result for the period was down by 16.5 per cent to EUR -459m. Expenses for severance pay and compensation as part of the SCORE job cuts depressed the Group’s result for the first quarter, as did impairment losses and valuation effects. Earnings per share sank to EUR -1.00.
Lufthansa invested EUR 718m in the reporting period. Of this sum, EUR 657m went on modernising and maintaining the fleet. Cash flow from operating activities came to EUR 976m and free cash flow (cash flow from operating activities less net capital expenditure) to EUR 463m. For the first quarter, the Group had net debt of EUR 1.7bn. Following the application of new accounting standards (IAS 19), the equity ratio is now 15.4 per cent.
|of which traffic revenue||€m||5,337||5,349||5,349||-0.2%|
|Result from operating
|Net profit/loss for the period||€m||-459||-394||-379||-16.5%|
|Cash flow from
|Employees as of 31.3.||116,516||120,898||120,898||-4,382|
|Earnings per share||€||-1.00||-0.86||-0.87||-0.14|
*) Operating result plus write-backs of provisions, divided by revenue
**) Previous year’s figures have been adjusted in line with changes to IAS 19
Copyright Photo: Brian McDonough. Lufthansa is gradually replacing its older Boeing 747-430s. D-ABTF (msn 24967) climbs gracefully away from Dulles International Airport near Washington, DC.
Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York-JFK) today announced adjusted net income attributable to common stockholders of $5.9 million, or $0.22 per diluted share for the first quarter of 2013 compared with adjusted earnings of $13.6 million, or $0.51 per diluted share, for the first quarter of 2012.
On a reported basis, net income attributable to common stockholders in the first quarter totaled $20.1 million, or $0.76 per diluted share, compared with $12.8 million, or $0.48 per diluted share in the year-ago quarter.
Adjusted earnings in the first quarter of 2013 exclude an income tax benefit of $14.2 million, or $0.54 per diluted share, related to the tax treatment of extraterritorial income from the offshore leasing of certain aircraft. Adjusted earnings in the first quarter of 2012 exclude fleet retirement costs of $0.9 million, or $0.03 per diluted share.
First-quarter revenue grew 5% to $377.3 million, with operating income increasing 10% to $22.6 million and operating margin expanding slightly. Free cash flow for the period totaled $42.4 million compared with $1.0 million in the first quarter of 2012.
“Our first-quarter results and initiatives demonstrate the benefits of a modern, efficient fleet, diversified business mix and solid balance sheet in a challenging business environment,” said William J. Flynn, President and Chief Executive Officer.
“Operating income during the quarter reflected the strength of our ACMI operations, especially our new 747-8 freighters. It also gained from new organizational capabilities and the evolution of our business, such as our expanding 767 service and growing CMI operations. We also realized operating efficiencies through our continuous improvement initiatives.
“Capitalizing on our financial strength, we acquired an immediately profitable 777 freighter under long-term customer lease for our Dry Leasing business. We also implemented an immediately accretive share repurchase program that acquired 3.4% of our outstanding stock for a total of $36.5 million through late April.
“Earnings in the first quarter were in line with our expectations and our outlook for the year. As a result, we are affirming previous guidance for 2013 but we are raising our expected adjusted earnings per share to $4.80 from $4.65 to reflect our actual and anticipated share repurchases.”
Revenue, volume and profitability growth in our core ACMI business during the first quarter were driven by our new 747-8Fs, with four additional -8F aircraft in service compared with the first quarter of 2012, as well as the continued ramp up of CMI flying for Boeing and DHL Express.
Improved ACMI segment earnings during the period also benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments.
In AMC Charter, strong growth in passenger service volumes partially offset a 41% reduction in cargo block hours, a reduction in the number of one-way AMC missions, and lower average cargo revenue per block hour, which led to a decline in segment contribution. Lower average passenger revenue per block hour during the period stemmed from an increase in flying on smaller-gauge 767 aircraft added to supplement our wide-body 747-400 passenger service and enhance our share of military passenger business.
Segment results in Commercial Charter reflected the seasonal nature of this business and were primarily related to a reduction in yields driven by soft first-quarter global charter-market conditions.
Results in the first quarter were also affected by higher non-operating expenses, primarily due to a reduction in capitalized interest on 747-8F aircraft that entered service.
Reported earnings for the first quarter of 2013 included an effective income tax rate benefit of 97.4%, reflecting a federal income tax benefit of $14.2 million related to the tax treatment of extraterritorial income from the offshore leasing of certain of our aircraft.
Cash, Cash Equivalents and Short-Term Investments
At March 31, 2013, our cash, cash equivalents and short-term investments totaled $343.9 million, compared with $419.9 million at December 31, 2012.
The change in cash, cash equivalents and short-term investments was primarily driven by an increase in cash provided by operating and financing activities, offset by cash used for investing activities.
Net cash used for investing activities in the first quarter of 2013 primarily related to the purchase of a 747-8F aircraft for our ACMI operations and a 777-200 LRF aircraft for our Dry Leasing business.
Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. These proceeds were partially offset by payments on debt obligations and a prepayment under an accelerated share repurchase program agreement (“ASR”).
Share Repurchase Activity
Between mid-February and late April 2013, we repurchased 903,301 shares of our common stock for $36.5 million at an average cost of $40.40 per share. The shares were acquired pursuant to an ASR with an investment bank that settled on April 25, 2013.
We acquired 427,168 of these shares during the period ended March 31, 2013, which added $0.01 per diluted share to our adjusted and reported earnings for the first quarter.
Future repurchases may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.
We expect to generate strong earnings and cash flow in 2013. Led by ACMI, each of our business segments is expected to be profitable for the year.
Incorporating our share repurchase activity, we anticipate that our adjusted fully diluted earnings per share this year will total approximately $4.80, an increase from prior guidance of approximately $4.65. Including the extraterritorial income tax benefit of $0.54 per share, our reported fully diluted earnings per share in 2013 should be approximately $5.34.
Both adjusted and reported full-year 2013 EPS guidance assume the repurchase of $50.0 million of our outstanding stock during the year.
Our expectation for full year 2013 operating performance is unchanged from the outlook we issued last quarter. We now expect to fly fewer block hours in our Commercial Charter segment in 2013 than we previously forecast. We also expect lower operating expenses as a result of continuous improvement initiatives that drive productivity improvements and operating efficiencies. These initiatives target all aspects of our business, including engine overhauls, procurement efforts, passenger catering, ground travel, and crew scheduling.
Similar to the first quarter, adjusted and reported full-year earnings in 2013 will reflect strong growth from the company’s 747-8Fs in ACMI, driven by an increase in the number of -8F aircraft in ACMI service compared with 2012, including the incremental placement with Etihad Airways we announced today.
Market growth during 2013 should be seasonal and second-half weighted. We continue to anticipate a sequential increase in our quarterly earnings throughout the year, with approximately 75% of adjusted earnings per share and 66% of reported earnings per share occurring in the second half.
Based on our revised view, block-hour volumes in 2013 are now expected to total approximately 175,000 hours. ACMI segment flying should account for about 135,000, or 77%, of expected 2013 block hours, with about 22,000, or 13%, in Commercial Charter and 18,000, or 10%, in AMC Charter. Passenger charter flying should account for more than 10,000 AMC Charter block hours in 2013.
Based on anticipated deliveries of 747-8Fs in our outstanding order, the average number of -8Fs in service in 2013 should increase to more than eight from 4.3 in 2012.
In addition, we now anticipate that maintenance expense will total approximately $172 million in 2013, about 60% of which should be incurred in the first half of the year.
Mr. Flynn concluded: “In an environment of continuing global uncertainty, we are well-positioned to serve our customers and the airfreight markets. We have performed well. We are ready to capitalize on market improvements. And we are executing a strategic plan that leverages our core competencies, provides a basis for returning capital to our investors through share repurchases, and will enable us to grow over the long term.”
In other news, Atlas Air has confirmed the placement of its eighth Boeing 747-8 Freighter into ACMI service.
The aircraft will fly on behalf of Etihad Cargo, the cargo arm of Etihad Airways, the national carrier of the United Arab Emirates, pursuant to a multi-year aircraft, crew, maintenance and insurance agreement that commences in May 2013.
The new contract between the companies follows a letter of intent announced on April 1, 2013, and complements an existing Boeing 747-400F ACMI arrangement between Atlas and Etihad. The aircraft will be operated in full Etihad Cargo livery.
Copyright Photo: Pedro Pics. Atlas Air operates this Boeing 747-87UF N850GT (msn 37570) for Panalpina Air and Ocean in their colors.
National Airlines (5th) (National Air Cargo) (Orlando) has issued this statement concerning the crash of flight NCR 102 at Bagram Air Base in Afghanistan on April 29. Flight NCR 102 was a cargo flight operated by National Airlines between Bagram and Al Maktoum Airport in Dubai. As we previously reported, the pictured former Air France Boeing 747-428 BCF N949CA (msn 35630) crashed on takeoff from Bagram, tragically killing all seven crew members on board. Media speculation has arisen because of the dramatic video (below) by Live Leak which shows the Jumbo Jet diving into the ground on takeoff.
“National Air Cargo will not speculate as to the cause of the accident involving National Flight NCR 102. With our full cooperation, an investigation by appropriate authorities is under way, and we encourage everyone to join us in respecting that process and allowing it to take its appropriate course.
Here are some facts regarding the aircraft and its movements prior to the accident:
- National Flight NCR 102 was en route to Dubai from Camp Bastian and had stopped to refuel at Bagram Air Base.
- The cargo contained within the aircraft was properly loaded and secured, and had passed all necessary inspections prior to departing Camp Bastian.
- The aircraft landed safely and uneventfully in Bagram.
- No additional cargo or personnel was added during the stop in Bagram, and the aircraft’s cargo was again inspected prior to departure.
National Airlines lost seven colleagues on April 29, 2013 in the crash at Bagram Air Base. All seven were dedicated aviation professionals and served National and our country well. The flight, NCR 102, was carrying military vehicles out of Afghanistan. The crewmembers on NCR 102 were Brad Hasler, Pilot in Command, Trenton MI; Jeremy Lipka, Pilot in Command, Brooklyn MI; Jamie Brokaw, First Officer, Monroe MI; Rinku Summan, First Officer, Canton MI; Michael Sheets, Loadmaster, Ypsilanti MI; Timothy Garrett, Maintenance, Louisville KY; Gary Stockdale, Maintenance, Romulus MI.”
Copyright Photo: Karl Cornil. N949CA is pictured arriving at Liège prior to tragic accident in 2012.
National Airlines’ Boeing 747-400 freighter N949CA crashes on takeoff in Afghanistan, 7 crew members killed
National Airlines’ (5th) (National Air Cargo) (Orlando) Boeing 747-428 BCF freighter registered as N949CA (msn 35630) crashed today (April 29) on takeoff at Bagram Air Force Base in Afghanistan. All seven crew members are believed to have perished in the fiery crash.
The Taliban claimed to have shot down the freighter but coalition forces dismissed the claim.
The airline issued this statement:
A National Airlines Boeing 747-400 cargo plane was involved in an accident at Bagram Airbase in Afghanistan on April 29.
At approximately 7 a.m. EDT, National Flight NCR 102 from Bagram to Dubai, UAE, with seven crewmembers on board crashed on takeoff. None of the crew members survived. This was a purely cargo flight and no passengers were aboard. Cargo consisted of vehicles and routine general cargo.
“Safety is always our top priority at National Airlines,” said National Airlines President Glen Joerger. “This is a devastating loss for our family and we’ll work diligently with authorities to find the cause,” said Joerger. “Most importantly, our thoughts and prayers are with our crew members and their families.”
National will release additional information as it becomes available, in cooperation with government authorities. Our focus at this time is on the family members of those we’ve lost, and on assisting the NTSB and Afghanistan Civil Aviation Authority in their investigations. As of now, the cause of the accident is unknown.
Read the full report from the Wall Street Journal: CLICK HERE
Actual video of the crash from Live Leak:
Copyright Photo: Ton Jochems. Ill-fated N949CA taxies at Amsterdam before the accident. The airframe previously flew for Air France.
Cargolux Airlines International (Luxembourg) issued its financial statement for 2012:
At the April 24 annual General Meeting, the shareholders of Cargolux Airlines International S.A. approved the audited Financial Statements for the financial year ended December 31, 2012.
The steep decline in air cargo markets at the end of 2011 continued into 2012 not only for Cargolux, but for the industry as a whole. Depressed demand coupled with continued overcapacity resulted in significant pressure on yields and load factors for all freight operators.
Despite an improvement in late 2012, Cargolux recorded an overall loss of $35.1 million on revenues of $1,738.9 million. This loss, however, is markedly lower than the $57.0 million loss budgeted by the airline for the 2012. With the improvement in demand experienced in the last quarter of 2012 and the positive volume growth experienced by the airline for the first quarter of 2013 versus 2012, Cargolux remains cautiously optimistic for the current year. ‘Considering the state of the industry and the economic difficulties worldwide, Cargolux fared better than anticipated in 2012, that gives me hope for the current year,’ said Paul Helminger, Chairman of the Board of Directors.
In 2012, Cargolux carried 645,759 tons of cargo on its worldwide network. The fleet consisted of a mix of Boeing 747-400 and 747-8 freighters. With the new 747-8F gradually replacing the 747-400F, the airline operated eleven 747-400F and six 747-8F at the end of December 2012. Four Boeing 747-8 freighters joined the fleet during the year and additional deliveries are expected in 2013. In total, Cargolux will receive 13 units of the advanced freighter.
Cargolux has implemented a new business plan designed to ensure the long-term sustainability of the airline with a return to profitability in 2014.
Copyright Photo: Paul Denton. Boeing 747-8R7F LX-VCE (msn 35810) approaches Dubai International Airport (DXB) for landing.