Tag Archives: 747

Aeroflot will not proceed with the acquisition of Transaero, will end operations on December 15

Aeroflot Russian Airlines (Moscow) will not proceed with its acquisition of 75 percent of the stock of rival and struggling Transaero Airlines (Moscow) according to Reuters. Transaero’s shareholders failed to meet the deadline for an acquisition plan.

Read the full report:

Meanwhile the Russian government has given its approval for Transaero to file for bankruptcy according to rt.com.

Read the full report:

The airline has acknowledged on social media that it is “rehabilitating its activities” and would have more details later today.

According to Bloomberg the airline’s creditors have not yet agreed on a restructuring plan. The government has banned the airline from selling any further tickets due to its large debt.

Aeroflot will reportedly stopped buying fuel for Transaero aircraft which affectively grounds the airline.

Read the full report:

Update: On October 2, 2015 Transaero Airlines issued this statement:

Upon the decision of the Government of the Russian Federation on external management and sanation of Transaero Airlines, the carrier interacts with the partners to ensure the carriage of the passengers holding the tickets of the airline.

The airline has suspended ticket sales.

The transportation of passengers-holders of the airline’s tickets on domestic and international routes will be provided until December 15, 2015.

Passengers-holders of tickets for flights after 00.00 of December 15, 2015, will be able to get refund of the full ticket price.

In summary, Transaero Airlines will cease operations at midnight on December 15, 2015.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Antalya, Turkey is a favorite destination for the carrier and its uses Boeing 747-400s to bring large loads of Russian tourists to the popular beach resort. Flights are now being delayed from leaving Antalya (AYT). Boeing 747-446 EI-XLG (msn 30111) taxies at AYT.

Transaero Airlines aircraft slide show:

Cargolux celebrates 45 years of flying with a “You name it, we fly it” logo jet on newly-delivered Boeing 747-8R7F LX-VCM

Cargolux Airlines International (Luxembourg) on September 28 took delivery of brand new Boeing 747-8R7F LX-VCM (msn 61169). The new delivery was flown to Luxembourg (above) and is in service between Luxembourg and Los Angeles via Prestwick.

The new Jumbo freighter is painted in a whimsical “You name it, we fly it” special livery created by Belgian cartoonist Philippe Cruyt. The logo jet is helping Cargolux celebrate 45 years of flying. The logo jet displays some of the odd things the airline has flown in its history.

The airline issued this statement and photos yesterday:

Cargolux Airlines, Europe’s largest all-cargo airline, celebrates its 45th anniversary with a special aircraft livery, created by Belgian cartoonist Philippe Cruyt, that was applied to its 13th 747-8 freighter delivered. The aircraft, LX-VCM, named ‘City of Redange-sur-Attert’, was handed over at Boeing’s Seattle plant on September 28 and arrived in Luxembourg on September 29 with a full load of cargo.

As an undisputed leader in air cargo, Cargolux offers an extensive product range, covering everything from every-day cargo to shipments that require detailed attention, special treatment and expert handling.

Backed by 45 years of experience, the highly specialized Cargolux teams can cater to the most demanding requirements customers may have.

This ability is aptly portrayed in the anniversary livery on LX‑VCM that depicts in a humorous way the many facets of air freight shipments, routinely handled by Cargolux every day.

The decal on Cargolux’s new freighter is the biggest decal that Boeing ever applied to an aircraft, it consists of 460 individual parts.

Phillippe Cruyt was born in Brussels, Belgium, in 1962. He has already illustrated a range of successful educational books on air freight and environmental topics, published by Cargolux in the early 2000s, as well as advertising and safety campaigns, calendars and posters for the airline.

In addition, he has illustrated a range of books as well as published his cartoons at various exhibitions throughout Europe.

Currently, Mr. Cruyt divides his professional time and energy between cartoon illustrations for children’s and educational books or designing communication messages with a touch of humor. When he is not drawing, Mr. Cruyt plays clarinet and tenor sax in his jazz group, The Creole Shakers Trio.

History

Over the last 45 years, Cargolux has grown to become Europe’s largest all-cargo airline with 828,658 ton of cargo flown in 2014 and a fleet of 25 747 freighters.

On March 4, 1970, Luxair, Loftleiðir, Salén and some private interests founded Cargolux and started operations from the newly established home base at Luxembourg airport with a handful of Canadair CL-44 freighters. The young carrier’s first flight on 10 March 1970 was routed Luxembourg – Stockholm – New York and carried a cargo of strawberries and iceberg lettuce.

The airline was created to operate all-cargo ad hoc and sub-charter flights and the first years of operation proved that there was a need for the type of service that Cargolux was offering to its customers.

The CL‑44s soon gave way to bigger DC-8 freighters (above) and, in later years, Cargolux introduced the wide-body Boeing 747 freighter into its fleet, amidst much skepticism in Luxembourg and within the industry. However, the success of the operation eventually proved critics wrong. In later years, Cargolux became the first operator and launch customer of the 747-400F and the 747-8F. With more than 85 offices in over 50 countries, Cargolux today flies to over 70 destinations worldwide and employs over 1,700 people.

Selected Milestones

1970: Cargolux Airlines International is founded by Luxair, Loftleiðir Icelandic, the Salén Shipping Group and private Luxembourg interests.

1974: The maintenance division of Loftleiðir Icelandic is integrated into Cargolux, whose staff increased from 80 to 180 over night.

1978: The final CL-44 is phased out. Cargolux now operates an all-jet fleet.

1979: Boeing delivers Cargolux’s first Boeing 747-200F, the second one arrives a year later.

1983: Cargolux’s CHAMP (Cargo Handling And Management Planning) computer system is introduced.

1984: The last DC-8 freighter is sold, while a third 747-200F is added to the fleet in 1986.

1988: Cargolux ranks among the 15 largest cargo carriers in the world, measured in freight tonne kilometers flown.

1990: Cargolux celebrates its 20th anniversary with an order for three new Boeing 747-400 freighters.

1993: With the delivery of the first two Boeing 747-400 freighters, Cargolux becomes the first airline in the world to operate this state-of-the-art aircraft.

1995: Cargolux celebrates its 25th anniversary. The fleet of modern 747-400 freighters is steadily expanded over the coming years; the 16th and last unit is handed over in 2008.

2005: Cargolux and Boeing announce the development of a new, advanced version of the 747 freighter, later to become the 747-8 series. Cargolux is a launch customer for this new 747 type with an initial order for 10 aircraft. The company later orders five more 747-8Fs.

2009: The Cargolux Maintenance Division moves into its new maintenance hangar that offers modern facilities and space for two 747/A380-sized aircraft. Cargolux enters into a strategic partnership in Italy to create Cargolux Italia for intercontinental all-cargo services from Milan’s Malpensa airport.

2011: Qatar Airways takes a 35% equity interest in Cargolux, but decided in November 2012 to sell its stake. The State of Luxembourg acquires these shares on an interim basis. Some six years after signing the initial order, Cargolux is taking delivery of its first two Boeing 747‑8 freighters on 19 and 21 September.

2014: Cargolux achieves a number of crucial goals, including the conclusion of a commercial cooperation agreement with HNCA, who acquire 35% of the Cargolux shares and the successful introduction of services to and from Cargolux’s new hub in China, Zhengzhou.

2015: Cargolux celebrates its 45th anniversary. The airline operates the largest fleet in its history and routinely records one of the highest daily aircraft utilization rates in the industry. Cargolux now operates seven weekly frequencies between Luxembourg and Zhengzhou and introduces its first dedicated transpacific service between Zhengzhou and Chicago.

The Cargolux Spirit

With the acceptance of 747-8F LX-VCM, Cargolux operates one of the youngest and most efficient freighter fleets in the industry.

“I’m proud to see this aircraft with a very special paint scheme join out fleet,” says Dirk Reich, Cargolux President & CEO. “The 747-8 freighter perfectly suits our worldwide network and its nose-loading and cargo-carrying abilities help us to maintain our leading position in the airfreight industry. Philippe Cruyt’s exceptional livery is a fitting addition to our 13th 747-8F and underlines not only the expertise and experience that Cargolux has gained in handling a wide variety of normal and special freight, but also celebrates the long and colorful history of our company. This aircraft is an ambassador for the passion and the spirit of Cargolux.”

All photos by Cargolux (except below).

Cargolux aircraft slide show:

Bottom Copyright Photo: Joe G. Walker. LX-VCM arrives at Seattle/Tacoma to take a full load of cargo to Luxembourg.

Boeing to build 747 fuselage panels at Macon, Georgia facility

Boeing (Chicago, Seattle and Charleston) has announced that 747 fuselage panels will be built at its Macon, Georgia facility beginning in 2018.

Boeing will take over the work from Triumph Aerostructures – Vought Aircraft Division, a wholly owned subsidiary of Triumph Group, Inc., with the Macon site providing assembled fuselage panels to Boeing’s 747 final assembly line in Everett, Washington. Boeing and Triumph Aerostructures have worked together to ensure a smooth transition for the 747 supply chain.

Boeing and Triumph Aerostructures have worked together for many months to ensure a smooth transition for the 747 supply chain. As part of this detailed process, the Boeing team selected the Boeing Defense, Space & Security Macon facility for 747 fuselage panel work.

Defense work currently performed at the Macon site includes replacement center wing sections for the A-10 Thunderbolt II, as well as sub-assemblies for the CH-47 Chinook helicopter. Fuselage panels for the C-17 Globemaster transport airplane were also produced at the site until earlier this year.

Current defense work at the facility is scheduled to be complete in mid-2016, at which time Boeing will transition the site for Commercial Airplanes work. Facility staffing will be temporarily reduced during the transition. The site will ramp up to full production on 747 fuselage panels by mid-2018, at which point it will employ up to 200 people.

Macon will become the twelfth manufacturing site for the Boeing Commercial Airplanes Fabrication organization, which has operations in three countries.

Boeing will invest approximately $80 million in employee training, tooling and building modifications over the next three years.

The fuselage panel assembly transfer to the Macon site is the first of several new work packages for the 747 currently supplied by Triumph Aerostructures that Boeing will announce in the coming months.

Other 747 structures work now done by Triumph Aerostructures, including the empennage, floor beams and flight surfaces, is currently being competitively bid to selected suppliers. Boeing expects to have sourcing decisions for all the work completed this year.

At Macon, Boeing will equip the site with new tooling and equipment, which will occupy the entirety of the 220,000 square foot facility. A new advanced manufacturing production system will reduce the time to produce fuselage panels while also increasing quality and enhancing employee safety.

Copyright Photo: TMK Photography/AirlinersGallery.com. The 2015 version of Boeing’s support of the hometown NFL Seattle Seahawks. Boeing 747-83QF N841BA (msn 60119) lands back at Paine Field in the 12th Man livery.

Boeing 747 Gallery and Slide Show:

Delta retires the first-built Northwest Boeing 747-400, will go to the Delta Flight Museum

Delta Air Lines (Atlanta) yesterday (September 9) retired its pictured Boeing 747-451 N661US (msn 23719), the first Boeing 747-400 built for Northwest Airlines-NWA (Minneapolis/St. Paul). Ship 6301 was retired as flight DL 836 from Honolulu to Atlanta according to Delta. Delta issued this story and photo of the historic last flight:

Ship 6301 will move to the Delta Flight Museum, where it will become the latest aircraft exhibit.

On September 9 Delta retired the first Boeing 747-400 aircraft ever delivered to a commercial airline, after its final flight from Honolulu to Atlanta.

Delta Ship 6301 made its first flight with Northwest Airlines in December 1989, and has logged more than 61 million miles, enough to make 250 trips from the Earth to the moon. Northwest later merged with Delta.

Known as the “Queen of the Skies,” the 747 is one of the most popular and recognizable aircraft in the world today. When the first 747 made its first commercial flight 45 years ago, critics thought the aircraft would soon become obsolete as designers believed that supersonic aircraft would be taking over the skies. However, the four-engine jumbo jet revolutionized the industry with its exceptional long-haul flight capability and sheer size, nearly three times larger than the largest jet flying at the time.

The 747 ushered in a new era of international travel with luxuries and, at one time, features such as spiral staircases to the upper deck and stand-alone piano bars.

The improved 747-400 featured a new glass cockpit, tail fuel tanks, advanced engines and a new interior.

747-400 model is called a “high-tech” jumbo to distinguish its advanced features from its predecessor, the “classic jumbo” of the -100 to -300 series. 747-400s have been flown from the U.S. to numerous long-haul destinations including Amsterdam, Tel Aviv, Honolulu, Shanghai, Seoul, Tokyo, and Manila during the past 26 years.

As Delta continues to modernize its fleet and improve its Pacific network, the airline plans to retire the remaining 12 747s in its fleet by 2017, replacing them with smaller, more fuel-efficient aircraft that will enable the airline to operate a wider variety of routes, particularly in Asian markets.

The final flight of ship 6301 was flight DL 836. The full flight took off from Honolulu on time (see the video below) while the entire Delta team saw off the beloved aircraft.

Above Photo: Delta. The cabin crew of the last revenue flight of N661US.

Following its final flight, Ship 6301 was welcomed home to Atlanta early on September 9.

Delta Chief 747 pilot Steve Hanlon said the 747-400 was affectionately known as “The Whale” among pilots. “Even as large as the Whale was, it was surprisingly maneuverable and fast, typically cruising at .86 the speed of sound with close to 400 people onboard.”

Following its retirement, Ship 6301 is scheduled to take a final journey in early 2016 to the Delta Flight Museum, where it will become the latest aircraft exhibit.

Interesting the Jumbo, while with Northwest Airlines, was involved in an in-flight event. Flight NW 85 was a flight from Detroit Metropolitan Wayne County Airport to Tokyo’s Narita International Airport. According to Wikipedia, the flight experienced a rudder hardover event on October 9, 2002 when the flight was close to Anchorage, Alaska. The flight diverted to Ted Stevens Anchorage International Airport. No passengers or crew were injured.

N661US was delivered to Northwest Airlines as the launch customer of this type on December 8, 1989. Boeing originally showcased the new model as N401PW from April 29, 1988 until it was handed over to Northwest.

Top Copyright Photo: Ton Jochems/AirlinersGallery.com. N661US taxies at Amsterdam in Delta’s colors.

Delta aircraft slide show (current livery):

Northwest aircraft slide show:

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. N661US arrives at Tokyo (Narita) in Northwest colors.

Video: Video of the last takeoff from Honolulu and the historical last flight:

Lufthansa to take legal action against Vereinigung Cockpit’s Group Collective Labor Agreement Committee

Lufthansa (Frankfurt) has issued this statement concerning the on-going strikes by the VC pilots union:

The response from the Vereinigung Cockpit pilots’ union to the numerous proposals and offers of talks submitted by Lufthansa has been further strike action, which today is affecting long-haul services and tomorrow will affect all the company’s short- and medium-haul routes, and thereby again subject its customers to unacceptable inconvenience.

For the past two years, right up until yesterday, Lufthansa has been approaching the Vereinigung Cockpit (VC) Group Collective Labor Agreement Committee with constructive proposals, offers and concessions. In doing so, the company has made concrete proposals on every open collective labor agreement issue, with a view to working together with the VC to jointly ensure the future viability and competitiveness of the company as a whole and of Lufthansa German Airlines in particular. In addition, Lufthansa has also demonstrated a willingness to discuss issues with the VC Group Collective Labor Agreement Committee that extend far beyond the latter’s responsibility and authority.

Since it is evidently impossible at present to engage in constructive negotiations, Lufthansa has now resolved that:

The existing rights and benefits held by the cockpit personnel already at the company under their present Group Collective Labor Agreements (CLAs) will be frozen at their current levels until such time as any new Group CLA is concluded. In view of the company’s current inability to compete, however, no more new pilots will be employed under these Group CLA conditions at Lufthansa German Airlines, Lufthansa Cargo or Germanwings. As a result, the natural employee turnover within the present cockpit corps will lead to gradual reductions in these companies’ aircraft fleets. At the same time, every present cockpit crew member at these companies will retain their position.
Any future discussions with the VC Group Collective Labor Agreement Committee will be limited to those issues within its responsibility and authority. These are in particular the Compensation CLA, the Umbrella CLA, the CLA on Transfers and Promotions, the CLA on Old Age Provisions, the CLA on Employee Representation and the CLA on Transitional Retirement Provisions.
Lufthansa will carefully consider whether all the agreements between the company and the VC Group Collective Labor Agreement Committee on which notice has not yet been served can be meaningfully maintained.
Lufthansa will submit a claim for compensatory damages against the Vereinigung Cockpit to the Frankfurt Labor Court. This claim will be based on the unlawfulness of the pilots’ strike of April 2014, when the Vereinigung Cockpit ordered strike action against Lufthansa Cargo even though the corresponding CLA was still in force. The damage caused to the Lufthansa Group as a result of the April 2014 strike totaled around EUR 60 million.
Lufthansa is considering what possibilities (if any) the German Collective Bargaining Act (“Tarifeinheitsgesetz”) offers to prevent further harm to the company and its customers. In taking these actions Lufthansa is assuming responsibility for the future competitiveness and viability of the entire company, for its customers (who are currently being subjected to unacceptable inconvenience) and for its 120,000 employees from all personnel groups whose jobs are directly dependent on the company’s future.

“We would have liked to finally resume our CLA negotiations with the Vereinigung Cockpit instead of having to respond with this further escalation,” says Bettina Volkens, Chief Officer Corporate Human Resources & Legal Affairs at Deutsche Lufthansa AG. “I also appeal to our pilots to live up to their personal responsibilities. With the strike plans outlined by the VC for the time between now and the end of this year, the financial damage to our company would exceed 100,000 euros per pilot. It is high time we sat down and found a solution here.”

Deutsche Lufthansa AG

Lufthansa later issued this statement after the court declared the strikes as illegal:

Lufthansa welcomes the decision of the Hessen Labor Court in Frankfurt am Main to prohibit the strike action by the Vereinigung Cockpit (VC) pilots’ union with immediate effect.

The Court described the VC’s strike action as “evidently unlawful” in that, for the VC, the strike was clearly motivated not only by the official reason stated, i.e. pilots’ transitional retirement provisions, but also by the Wings Concept of the Lufthansa Group. This was not, the Court found, a valid strike objective. The Court further noted that the VC was not prepared to enter into overall mediation unless the Wings Concept was included therein.

The Court’s ruling does not permit recourse to any further legal channels. Lufthansa will offer its customers flight schedules that are virtually back to normal from tomorrow onwards, together with its usual reliable service. For planning certainty reasons, today’s special timetable will remain in effect.

Lufthansa remains willing to resume its negotiations on all open collective labor agreement items with the VC’s Group Collective Labor Agreement Committee at any time.

“Our goal is still to work with the VC to find a joint solution to all the open CLA issues through the negotiating process,” confirms Dr. Bettina Volkens, Chief Officer Corporate Human Resources of Deutsche Lufthansa AG. Deutsche Lufthansa AG

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 747-830 D-ABYT (msn 37844) in the 1968 retro livery approaches the runway at Dulles International Airport near Washington.

Lufthansa aircraft slide show:

Korean Air becomes the first airline to operate both versions of the Boeing 747-8

Korean Air (Seoul) and Boeing (Chicago, Seattle and Charleston) yesterday (August 25) marked the delivery of the airline’s first 747-8 Intercontinental. The new fuel-efficient jet is the first of 10 747-8 passenger airplanes the carrier has on order.

Top Copyright Photo: Royal S. King/AirlinersGallery.com. The pictured Boeing 747-8B5 HL7630 (msn 40905) was handed over to the carrier on August 25. The Jumbo is seen landing after a test flight at Paine Field near Everett, WA.

With this delivery, Korean Air becomes the first airline in the world to operate both the passenger and freighter versions of the 747-8. Korean Air currently operates seven 747-8 Freighters.

Korea’s flag carrier currently operates a fleet of 87 Boeing passenger airplanes that includes 737, 747 and 777s. The airline also operates an all-Boeing cargo fleet of 28 747-400, 747-8 and 777 Freighters.

With a range of 7,730 nautical miles (14,310 km), the 747-8 Intercontinental offers 16 percent savings in fuel consumption and emissions over its predecessor, the 747-400, while generating 30 percent less noise. The airplane also features an all-new, 787 Dreamliner-inspired interior that includes a new curved, upswept architecture giving passengers a greater feeling of space and comfort.

Korean Air’s jet is configured with 368 seats and features the brand new First Class Kosmo Suite 2.0, which include a sliding door and higher partitions to provide added privacy for passengers. The suites are also equipped with updated in-flight entertainment systems, with large 24-inch high-definition monitors and new handheld touch remotes.

Above Photo: Boeing.

The airline’s Business Class Prestige Suites (above) will feature staggered seating and privacy panels, along with 18-inch high definition touch screens.

Korean Air’s Aerospace Division is a key Boeing partner on both the 747-8 and 787 programs, supplying the distinctive raked wing-tips for each model. They are also one of two suppliers producing the new 737 MAX Advanced Technology (AT) Winglet.

Korean Air, with a fleet of 161 aircraft, is one of the world’s top 20 airlines, and operates more than 430 flights per day to 128 cities in 45 countries. It is a founding member of the SkyTeam alliance, which together with its 20 members, offers its 612 million annual passengers a worldwide system of more than 16,000 daily flights covering 1,052 destinations in 177 countries.

Korean Air aircraft slide show:

Below Photo: Boeing. The staircase to the Upper Deck.

Virgin Atlantic moves the last Boeing 747-400 flight at London Heathrow to February

Virgin Atlantic Airways (London), as previously reported, is phasing out its venerable Boeing 747-400 at London’s Heathrow Airport (LHR). According to an update by Airline Route, the last Boeing 747-400 arrival at LHR is now scheduled for February 21, 2016 instead of April 17, 2016.

The last flight is expected to be flight VS006 from Miami to LHR arriving on the morning of February 21.

The type will continue to be operated from London’s Gatwick Airport.

Virgin Atlantic aircraft slide show:

Atlas Air Worldwide reports second quarter adjusted net income of $29.4 million

Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York) today announced adjusted net income attributable to common stockholders of $29.4 million, or $1.17 per diluted share, for the three months ended June 30, 2015, compared with $15.9 million, or $0.63 per diluted share, for the three months ended June 30, 2014.

On a reported basis, net income attributable to common stockholders in the second quarter of 2015 totaled $28.4 million, or $1.13 per diluted share, compared with $29.6 million, or $1.17 per diluted share, in the year-ago quarter.

Free cash flow of $68.5 million in the second quarter of 2015 compared with $59.2 million in the second quarter of 2014.

“Earnings in the second quarter were driven by contribution and margin strength in ACMI, Charter and Dry Leasing,” said William J. Flynn, President and Chief Executive Officer.

“We are seeing good demand for our aircraft and services as we enter the second half of 2015, as many of our customers are outperforming the overall market. We are working closely with our customers to provide them with the most efficient aircraft and effective operating services for their needs.

“As we gather additional insight into second-half demand, yields and military requirements, we continue to look forward to a strong year and a significant increase in earnings compared with 2014.”

Responding to market demand and customer requirements, we are implementing several previously announced fleet initiatives that are incorporated in our framework outlook for the year: placing an additional 747-400 freighter in ACMI service with DHL Express at the start of the third quarter; acquiring a new 747-8 freighter scheduled to be delivered to us in November; returning an owned, unencumbered 747-400 converted freighter to active service to meet additional Charter demand; securing a short-term operating lease on a second 747-400 converted freighter in Charter with more favorable terms; and expanding our Titan Dry Leasing portfolio by acquiring and converting two 767 passenger aircraft into freighter configuration. The freighters will be leased to DHL on a long-term basis when they are delivered in the fourth quarter.

Second-Quarter Results

Revenue and direct contribution in ACMI in the second quarter benefited from an increase in block hour volumes, driven by the start-up of four additional 767 CMI aircraft and an improvement in 747 cargo aircraft utilization. Segment contribution also benefited from lower heavy maintenance expense. These were partially offset by a reduction in revenue per block hour, which reflected the impact of payments received from a customer in 2014 in connection with the return of an aircraft as well as an increase in CMI flying in 2015.

In Charter, significantly higher segment revenues reflected an increase in commercial cargo demand and improvements in military passenger and cargo demand. In addition, segment contribution benefited from those higher flying levels and a reduction in heavy maintenance expense. The decrease in revenue per block hour was primarily driven by the impact of lower fuel prices.

In Dry Leasing, revenue and profitability grew as we realized revenue from maintenance payments related to the scheduled return of a 757-200 cargo aircraft in April. This aircraft was subsequently leased to DHL Express on a long-term basis during the quarter.

Reported earnings for the second quarter of 2015 included an effective income tax rate of 31.0%, which reflected our continued reinvestment of the net earnings of certain foreign subsidiaries outside of the U.S.

Half-Year Results

For the six months ended June 30, 2015, adjusted net income attributable to common stockholders totaled $55.2 million, or $2.20 per diluted share, compared with $27.1 million, or $1.07 per diluted share, for the six months ended June 30, 2014.

On a reported basis, first-half 2015 net income attributable to common stockholders totaled $57.6 million, or $2.29 per diluted share, compared with $37.5 million, or $1.49 per diluted share, in the first half of 2014.

Free cash flow totaled $148.8 million in the first six months of 2015 compared with $96.1 million in the first six months of 2014.

Liquidity and Capital Resources

At June 30, 2015, our cash, cash equivalents, restricted cash and short-term investments totaled $554.9 million, compared with $330.7 million at December 31, 2014.

The change in position reflected net cash of $171.1 million provided by operating activities; net cash of $104.4 million provided by financing activities, which included $99.1 million of debt payments; and net cash of $59.4 million used for investing activities.

In June 2015, we issued $224.5 million of convertible senior notes due June 2022 with a cash coupon of 2.25%. We used a portion of the approximately $218 million of net proceeds from the offering in June to fund the $16.6 million net cost of convertible note hedges and warrants related to the notes. These transactions are intended to offset any actual dilution from the conversion of the notes and to effectively increase the overall conversion price from $74.05 to $95.01 per share.

During the third quarter of 2015, we expect to use approximately $113 million of the net proceeds to retire higher-rate Enhanced Equipment Trust Certificates (EETCs) related to five of our 747-400 freighter aircraft. The redemption amount gives effect to the company’s ownership interests in the EETCs being retired, which have an average cash coupon of 8.1%.

We expect to use the remaining net proceeds from the convertible note issuance for working capital and capital expenditures, repayment or refinancing of debt, and general corporate purposes.

Outlook

We are encouraged by our strong first-half performance. We are seeing good demand for our aircraft and services this quarter and for the remainder of the year. And we continue to anticipate significant growth in adjusted diluted earnings per share in 2015.

On a sequential basis, we expect earnings per share in the third quarter of 2015 to be slightly better than our second-quarter 2015 adjusted earnings, followed by further earnings improvement in the fourth quarter.

Taking our first-half 2015 earnings strength into account, we continue to expect approximately 55% of our earnings to occur in the second half.

In addition, we anticipate that block-hour volumes this year will increase approximately 10% compared with 2014, including the impact of the 747-8 freighter scheduled to be delivered in November and 747-400BCF that we returned to service at the end of the second quarter. More than 70% of our total block hours should be in ACMI and the balance in Charter. Our ACMI outlook reflects expected growth in both 747 freighter operations as well as CMI flying. Our Charter outlook reflects our strong presence in the global charter market and military demand that is holding up well compared with 2014 levels.

In Dry Leasing, our portfolio is expected to include our recent acquisition and subsequent conversion of two 767 passenger aircraft to freighter configuration. Following their conversion, which should be completed during the fourth quarter of this year, the aircraft will be leased to DHL Express.

Given the flying levels that we anticipate, we continue to expect that aircraft maintenance expense in 2015 should total approximately $190 million. In addition, depreciation should be approximately $125 million. We also anticipate an effective income tax rate of approximately 30%. Core capital expenditures, excluding aircraft and engine purchases, are expected to total approximately $45 million, mainly for spare parts for our fleet. Expenditures for additional aircraft and engines should total approximately $240 million.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Polar Air Cargo’s Boeing 747-46NF N454PA (msn 30812) in DHL colors departs from scenic Anchorage, Alaska.

Atlas Air aircraft slide show:

Polar Air Cargo aircraft slide show:

DHL-Polar Air Cargo aircraft slide show:

Korean Air to become a new passenger Boeing 747-8 Intercontinental operator

Korean Air (Seoul) is already a Boeing 747-8F Intercontinental freighter operator. The flag carrier will soon to be welcomed to the 747-8 Intercontinental passenger club with the pending delivery of its first copy (above). The company has 10 Super Jumbos on order and will replace their older Boeing 747-400s with new type. The older 747-400s will be phased out by 2017.

Like Lufthansa, Korean Air will soon operate both the Airbus A380 and the Boeing 747-800.

Copyright Photo: Joe G. Walker/AirlinersGallery.com. The first, the pictured Boeing 747-8B5 HL7630 (msn 40905), taxies into position on the runway at Paine Field near Everett for a test flight.

Korean Air aircraft slide show:

Video:

United Airlines announces its highest-ever quarterly profit

United Airlines (Chicago) today reported its largest quarterly profit ever, reporting a second quarter 2015 net profit of $1.3 billion, or $3.31 per diluted share, excluding $67 million of special items.

The company issued this report:

United Airlines (UAL) today reported second-quarter 2015 net income of $1.3 billion, or $3.31 per diluted share, excluding $67 million of special items. Including special items, UAL reported second-quarter net income of $1.2 billion, or $3.14 per diluted share. These results are a record quarterly profit for the company.

The company’s Board of Directors authorized an additional $3 billion share repurchase program, which the company expects to complete by the end of 2017.
In the quarter, UAL prepaid approximately $800 million of debt, contributed approximately $620 million to its pension plans and returned approximately $250 million to shareholders as part of its existing $1 billion share buyback program.
UAL earned an 18.2 percent return on invested capital for the 12 months ended June 30, 2015.

“This quarter’s record results reflect the progress we’re making on our long-term plan, and I’d like to thank the United team for their great work,” said Jeff Smisek, UAL’s chairman, president and chief executive officer. “The $3 billion share repurchase program we announced today demonstrates the confidence we have in our future. We will continue to invest in our customers, assets and our people, and remain committed to improving our balance sheet, expanding our margins and improving our return on invested capital, and expect our third quarter pre-tax margin to be between 13.5 and 15.5 percent, excluding special items.”

Second-Quarter Revenue and Capacity

For the second quarter of 2015, total revenue was $9.9 billion, a decrease of 4 percent year-over-year. Second-quarter consolidated passenger revenue decreased 3.4 percent to $8.7 billion, compared to the same period in 2014. Ancillary revenue per passenger in the second quarter increased 6.7 percent year-over-year. Second-quarter cargo revenue decreased 1.3 percent year-over-year to $229 million. Other revenue in the second quarter decreased 9.6 percent year-over-year, mostly due to the reduction in sales of fuel to a third party. The corresponding expense decline from this reduction appears in third-party business expense.

Consolidated revenue passenger miles increased 0.7 percent and consolidated available seat miles increased 2.3 percent year-over-year for the second quarter, resulting in a second-quarter consolidated load factor of 83.9 percent.

Second-quarter 2015 consolidated PRASM decreased 5.6 percent and consolidated yield decreased 4.1 percent compared to the second quarter of 2014.

“This quarter, we continued to build and refine our route network, including announcing the move of p.s. transcontinental service to our global gateway hub at Newark Liberty Airport and forming a long-term partnership with Azul Brazilian Airlines. These decisions will enhance our network and provide our customers with more choice and convenience,” said Jim Compton, UAL’s vice chairman and chief revenue officer. “We will continue to improve our leading network by focusing on our strengths, while investing in our people, fleet and products to increase revenue and deliver a flyer-friendly customer experience.”

Read the full report: CLICK HERE

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. United has 23 aging Boeing 747-400s that will be eventually replaced with newer Airbus A350-1000s and Boeing 787-10 Dreamliners. Boeing 747-422 N199UA (msn 29717) arrives in Frankfurt.

United Airlines aircraft slide show (current livery only):