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Tag Archives: 757-200

The arbitration board issues its final decision for a joint American-US Airways flight attendant contract

American Airlines (Dallas/Fort Worth) and US Airways (Phoenix) flight attendants will now have a joint collective bargaining agreement and contract. The dispute went to arbitration and the arbitration board issued its decision.

The Association of Professional Flight Attendants (APFA) issued this statement about the decision:

On December 13, the seven member Arbitration Panel, established in accordance with the Negotiations Protocol Agreement, issued its decision on the terms of the Joint Collective Bargaining Agreement. The JCBA will consist of the pay, work rules, and benefits outlined in the APFA arbitration proposal. Unfortunately, the award does not include the “me too” clauses for health plans and profit sharing for which APFA argued. The award also does not provide retroactive pay raises for Flight Attendants. APFA had argued for the wage increases to take effect December 2, 2014. Instead, the increases will take effect on January 1, 2015. The effective date of the JCBA is December 13, 2014.

First, APFA proposed that the value of $112 million is the amount that the arbitrators must add to our combined contracts to equal market based in the aggregate, which is the standard provided for in the NPA. AA stipulated to this value.

Second, APFA argued for a “me too” for health insurance, meaning that if the company were to offer another work group health insurance that differs from the health insurance in our JCBA, APFA would have the option of replacing our current insurance with such other health insurance beginning the following year. The company argued against a “me too” for health insurance.

Third, APFA argued for a “me too” for profit sharing, meaning that if another workgroup on AA’s property were given a profit sharing plan, APFA would have the option of reducing the wage rates by $50 million per year (the value allotted for profit sharing in our proposal) and adopting such profit sharing plan. The company argued against a “me too” for Profit Sharing.

Finally, APFA asked for pay rates retroactive to December 2, 2014. The company argued against retroactive pay rates.

A majority of the Panel denied APFA’s request that the JCBA contain “me-toos” regarding the medical plan and profit sharing. In both cases the Panel found that the inclusion of these provisions would push the added value of the JCBA beyond the market-based aggregate of $112 million.

A majority of the Panel also rejected APFA’s argument that the new wage rates of the JCBA be retroactive to December 2, 2014. It held that starting the pay increases prior to the effective date of the JCBA would result in its value exceeding the $112 million cap.

The two union-appointed members of the Arbitration Panel dissented from the Panel’s decision denying the “me-toos” and the retroactivity of the new wage rates.

The effective date of the JCBA is December 13, 2014, the day the decision was issued. A link to the updated contract language including the implementation letter will be uploaded to apfa.org in the next several days. The new pay rates will go into effect on January 1, 2015.

In other news, American Airlines issued this statement today about a mileage promotion:

American Airlines will reward its customers with a bonus mile promotion in 2015, making the AAdvantage program the most generous in the industry. The promotion will offer AAdvantage® and Dividend Miles® members more miles based on the distance flown, the fare purchased and the member’s elite status level.

President, AAdvantage Loyalty Program Suzanne Rubin said: “As the largest airline in the world, with a global network that spans 54 countries, our frequent flyer program must also be the best in the business. A mile flown continues to be a mile earned in AAdvantage, and now we’re going to reward customers even more when they purchase a First or Business Class ticket.”

Beginning January 1, 2015 American will reward customers that are members of either the AAdvantage or Dividend Miles programs with bonus miles for purchased First or Business Class tickets on all eligible flights marketed or operated by American or US Airways. The promotion applies to all travel between Jan. 1 and Dec. 31, 2015.

Eligible flights for AAdvantage members include all AA and US-marketed and operated flights (including codeshare flights between the two carriers), and AA or US-marketed, partner-operated flights, including British Airways, Iberia, Finnair, Japan Airlines and Qantas. Until the company merges the frequent flyer programs in the second quarter 2015, eligible flights for Dividend Miles members will include all AA and US-marketed and operated flights (including codeshare flights between the two carriers).

The airline’s promotion provides bonus miles in addition to base mileage and elite status/class of service bonuses that customers normally earn. The amount of bonus miles earned will depend on the customer’s elite status level and the length of the flight.

American graph 12.15.14

Registration for the promotion is not necessary, as all bonus miles will be automatically added to members’ accounts after the eligible flight is complete. Additional details about the 2015 AAdvantage bonus mile offer are available at aa.com/moremiles.

As previously announced, also beginning January 1, bonus miles for AAdvantage members on Business Class tickets on American and US Airways will increase from 25 to 50 percent to align with what Dividend Miles members receive today.

Over the past year, American has rolled out enhanced benefits to members flying on either airline, including:

The opportunity to earn and redeem miles on American or US Airways, with all eligible travel on either airline counting toward elite status qualification in the program of that member’s choice

Reciprocal benefits for elite status members when flying either airline, including First and Business Class check-in, complimentary checked bags and priority security and boarding

More lounge access, with reciprocal club access for Admirals Club® and US Airways Club members

Easy access to the combined company’s expanded network through the codeshare between American and US Airways, which allows the ability to sell seats on both airlines’ flights

Bringing US Airways into the award-winning oneworld® alliance, offering more options across the Atlantic and an easier and more rewarding global travel experience to Europe and beyond

The ability to easily stay connected while customers fly with Monthly Traveler and Daily Wi-Fi passes, valid on both American and US Airways

Copyright Photo: Ton Jochems/AirlinersGallery.com. US Airways’ Boeing 757-23N N204UW (msn 30886), now in American colors, exits the runway at Amsterdam.

American Airlines aircraft slide show: AG Slide Show

American Airlines-US Airways aircraft slide show:

Icelandair finds tentative labor peace with its pilots, rolls out a new Northern Lights logo jet

Icelandair Group (Icelandair) (Keflavik) and the Icelandic Airline Pilots Association (FIA) have signed a tentative collective bargaining agreement that is valid until September 30, 2017. The agreement will now be presented to FIA members that will vote on the agreement.

Björgólfur Jóhannsson, President and CEO of Icelandair Group: “If ratified, this new three year agreement with FIA is an important milestone that will enable us to aim for continued organic growth.”

Copyright Photo: Matt Varley/AirlinersGallery.com. Icelandair has just painted its Boeing 757-256 TF-FIU (msn 26243) in this striking Northern lights/Aurora Borealis color scheme at Norwich.

Icelandair aircraft slide show:

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Delta Air Lines celebrates 30 years of flying the Boeing 757

Delta Air Lines (Atlanta) recently passed a quiet milestone with one aircraft type. The carrier has now operated the venerable Boeing 757-200 type for over 30 years. The first Boeing 757-200 (757-232 N602DL, msn 22809) was delivered on November 5, 1984 and placed into revenue service on December 1, 1984 along with N603DL. The initial routes were from Atlanta to Birmingham, Dayton and Jacksonville.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 757-232 N619DL (msn 22909) in the modified 1966 livery taxies at Dallas/Fort Worth.

Delta Air Lines aircraft slide show (historical liveries): AG Slide Show

La Compagnie to fly from the London area to Newark with its second Boeing 757

La Compagnie (Paris-CDG) is moving into the London area market.  The new business class airline is planning to launch a new route from a London area airport to Newark in March 2015 after it takes delivery of its second 74-seat Boeing 757-200 per the Wall Street Journal.

Read the full story: CLICK HERE

The new airline commenced scheduled flights from Paris (CDG) to Newark on July 21, 2014.

Copyright Photo: Jacques Guillem/AirlinersGallery.com. The first aircraft, Boeing 757-256 F-HTAG (msn 29307) is pictured at the Paris (CDG) base.

 

 

American counters Delta’s Philadelphia announcement, will start daytime Philadelphia-London Heathrow flights

American Airlines (Dallas/Fort Worth) on the heels of the Delta PHL-LHR announcement, has announced it will start new daily daytime service from Philadelphia International Airport (PHL) to London Heathrow Airport (LHR) on March 29, 2015.

The new flight complements American’s existing overnight PHL-LHR service.

The new flight will be operated with a US Airways Boeing 757-200 on the following schedule:

PHL–LHR (all times local)
Departs PHL at 9:55 a.m.
Arrives at LHR at 10:10 p.m.

Departs LHR at 8:20 a.m.
Arrives at PHL at 11:35 a.m.

American’s PHL-LHR service will continue to be operated as part of the airline’s joint business agreement with fellow oneworld® member British Airways. Together, the two airlines offer customers four daily flights year-round between Philadelphia and London. From London, American’s customers have access to more than 70 destinations in Europe on British Airways.

The largest airline in the world also is the airline with the most extensive network out of Philadelphia.

American offers more than 475 daily flights to 124 destinations from its PHL hub.

Copyright Photo: Michael Kelly/AirlinersGallery.com. American’s Boeing 757-223 N174AA (msn 31308) in the oneworld livery departs from Dublin.

American Airlines (current livery) aircraft slide show: AG Slide Show

American Airlines-US Airways aircraft slide show: AG Slide Show

American Airlines (classic liveries) aircraft slide show: AG Slide Show

Delta to fly the Philadelphia-London Heathrow route starting on April 8, 2015

Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) will expand their partnership between the U.K. and U.S. next year with the introduction of Delta’s nonstop service from London to Philadelphia.

Starting on April 8, 2015 the daily service will be Delta’s eighth destination to the U.S. from Heathrow. By next summer, the partnership will offer 39 daily flights to 16 destinations across North America from the U.K..

Delta’s Philadelphia service will be operated from Heathrow Terminal 4 using a Boeing 757-200 aircraft with 164 seats. Passengers travelling in the BusinessElite cabin will enjoy fully flat-bed seats and a range of dining options. Additionally, throughout the aircraft, all passengers will have access to on-demand in-flight entertainment.

To date, more than four million people have flown on the Delta-Virgin Atlantic partnership.

Copyright Photo: Jay Selman/AirlinersGallery.com. Ex-TWA/American Boeing 757-2Q8 N706TW (msn 28165) arrives in New York (JFK).

Delta aircraft slide show (current livery): AG Slide Show

American Airlines shifts the Edinburgh-Philadelphia route to New York JFK

American Airlines (Dallas/Fort Worth) is planning to shift US Airways‘ Edinburgh-Philadelphia route next summer to an Edinburgh-New York (JFK) routing according to the Scotsman city American sources. AA will operate the seasonal flight between May and September.

Copyright Photo: Karl Cornil/AirlinersGallery.com. US Airways’ Boeing 757-23N N203UW (msn 30548) in American colors departs from Brussels.

American Airlines (current livery): AG Slide Show

American Airlines-US Airways: AG Slide Show

Monarch Airlines retires its last three Boeing 757-200s

Monarch Airlines (London-Luton) as planned retired its last three Boeing 757-200s (G-DAJB, G-MONJ and G-MONK) this past week with the end of the summer season schedule.

The last flight was operated with G-MONK on a return charter flight from London (Gatwick) to
Krakow on November 12 as flights MON 9064 and MON 9065 returning late in the evening. G-MONK was then ferried from Gatwick Airport to Birmingham (BHX) for the end of lease checks.

All three of the Boeing 757s are currently at BHX awaiting their fate.

 

The airline is now all-Airbus ironically until those aircraft are replaced with new Boeing 737 MAX 8s.

Monarch has published this nice salute the venerable type on its Monarch blog:

Monarch has bid a sad but fond farewell to its Boeing 757s this month after years of tremendous service within the fleet. The Boeing 757 had a very interesting life within the fleet, due to it’s phenomenal flexibility and wide range and payload capabilities. It has served with Monarch all over the world and has probably seen more corners of the globe than our Airbus A300 or A330 wide body aircraft.

As word got out in the press and via social media that Monarch’s Boeing 757s were retiring, we received lots of interesting questions about the aircraft from you. In response, we’d like to share some of the beloved aircraft’s wonderful history and key stats with you. We’ve turned to passionate Boeing 757 enthusiast Toby Hiller, Monarch’s Senior Economic Planning Analyst, for his expertise.

Can you tell us a bit more about the history of the Boeing 757 fleet?

Between November 1993 and November 2014, Monarch’s Boeing 757 fleet operated planned flights to 439 airports in 128 countries and territories worldwide, including glamorous destinations such as New York, Rio de Janeiro, Cape Town, Bangkok, Tokyo, Singapore and Sydney! The furthest airport from Luton that the aircraft served was Auckland, New Zealand.

How many passenger seats/capacity does a Boeing 757 have?

With extra legroom seats the aircraft has 229 seats; without the extra legroom seats it has 235 seats. Interestingly, if the capacity is set up in a VIP “Captain’s Choice” configuration (which we operated on special charter flights – see below) then there is 92 business class seats and 12 economy seats.

Monarch 757-200 G-MONJ (02-Captain's Choice)(Grd)(Monarch)(LR)

Is there a fixed amount of staff needed for a Boeing 757?

The amount of crew needed for a Boeing 757 flight is subject to the length of the flight. A standard Monarch ZB short haul flight has 2 pilots (a captain and first officer) and 6 cabin crew serving our customers but this could change to 3 pilots and 8 cabin crew on long-range flights. It is interesting to know that VIP flights are subject to charterer requirements and on VIP flights an engineer would also travel.

How many toilets does a Monarch Boeing 757 have?

There are 2 toilets located at the front of the aircraft, 2 more at “door 3” which is further down the plane, so there are 4 in total.

How many galleys are there?

There are 2. There is a galley at the front of the aircraft and 1 at the rear. On VIP flights, a chef’s station could also be added to prepare fresh meals for customers.

What is the maximum take-off weight of the Boeing 757 aircraft?

Maximum take-off weight (MTOW): 113,398 kg

Top Copyright Photo: Antony J. Best/AirlinersGallery.com (all others by Monarch). One of the most colorful liveries worn by a Monarch 757 is the pictured Boeing 757-2T7 G-MONJ (msn 24104) that wore the the second version of the special “Hedkandi” color scheme.

Monarch Airlines aircraft slide show:

Video: A full flight on board G-DAJB from London (Gatwick) to Faro:

American Airlines Group’s flight attendants reject the latest contract offer

American Airlines (Dallas/Fort Worth) and US Airways (Phoenix) (American Airlines) flight attendants have rejected the latest tentative contract offer by a slim 16 vote margin – 8,196 against the proposal and 8,180 for the new contract. The flight attendants are represented by the Association of Professional Flight Attendants.

Read the full report by CBS News: CLICK HERE

Copyright Photo: Jay Selman/AirlinersGallery.com. US Airways’ Boeing 757-2B7 N939UW (msn 27303) now in full American colors taxies at the Charlotte hub.

American Airlines (current livery) aircraft slide show: AG Slide Show

American Airlines-US Airways aircraft slide show: AG Slide Show

American Airlines to add two new Boeing 757 routes from New York JFK next summer to Birmingham and Edinburgh

American Airlines (Dallas/Fort Worth) is adding two Boeing 757-200 summer seasonal routes from New York (JFK) to both Birmingham and Edinburgh in the United Kingdom on May 7, 2015. Both routes will be operated on a daily basis.

Update: American formally announced the new Birmingham flights on November 3 with this statement:

American Airlines customers will soon have access to a new destination when Birmingham, England (BHX) joins the network of the world’s largest airline.

New daily service from New York’s John F. Kennedy International (JFK) is scheduled to begin May 7 with a Boeing 757. Customers may begin booking travel on these flights now. Birmingham will be American’s fifth destination in the United Kingdom.

Flights leave JFK at 7 p.m. (1900) daily, arriving in Birmingham at 7:10 a.m. (0710). Flights from Birmingham will depart at 10 a.m. (1000), arriving at JFK at 12:55 p.m. (1255).

As previously reported, American is restoring the Miami-Frankfurt route on May 14, 2015 with Boeing 767-300s.

In other news, American will end Dallas/Fort Worth-Rio de Janeiro service on February 21, 2015 per Airline Route.

Copyright Photo: Fred Freketic/AirlinersGallery.com. American’s Boeing 757-223 N187AN (msn 32381) arrives in New York (JFK).

American Airlines: AG Slide Show

 

Icelandair to resume operations at Orlando International Airport on September 4, 2015

Icelandair (Keflavik) will resume services to Orlando International Airport (MCO) starting on September 4, 2015. The airline is also adding an extra weekly flight to the sunny destination taking the service up to four times a week on Mondays, Tuesdays, Thursdays and Fridays. The carrier is moving from Sanford back to MCO. The airline drops Orlando service during the summer months.

Copyright Photo: Andi Hiltl/AirlinersGallery.com. Boeing 757-256 TF-FIZ (msn 30052) arrives in Zurich.

Video: Just Planes video of the Icelandair Boeing 757:

Icelandair: AG Slide Show

United to start Newcastle-Newark flights next summer

United Airlines (Chicago) will launch a new summer seasonal spoke route from its Newark hub to Newcastle in the United Kingdom on May 23, 2015. The flight will operate five days a week until September 7, 2015 with 169-seat Boeing 757-200s. This will be the first trans-Atlantic route for Newcastle.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 757-224 N58101 (msn 27291) climbs away from the runway at Los Angeles.

United Airlines (current livery) Aircraft Slide Show: AG Slide Show

SF Airlines orders new Boeing 767-300 ER freighter conversions

SF Airlines (Shenzhen) is planning to add the larger Boeing 767-300F freighter to its growing fleet. The 767 will be a new type for the carrier. The cargo airline has placed an order with Boeing for an undisclosed number of 767-300 ER passenger-to-freighter conversions (Boeing Converted Freighters). SF Airlines, a subsidiary of Shenzhen, China-based delivery services company SF Express, will accept its first redelivered 767 in the second half of 2015.

SF Airlines currently operates Boeing 757-200F freighters (above) and Boeing 737 freighters.

Copyright Photo: Yuji Wang/AirlinersGallery.com. Boeing 757-2Z0 (F) B-2832 (msn 25887) is pictured at Shanghai (Pudong).

American Airlines Group reports a record third quarter net profit of $1.2 billion

American Airlines Group Inc. (American Airlines and US Airways) (Dallas/Fort Worth) today reported its third quarter 2014 results.

Third quarter 2014 net profit, excluding net special charges, was a record $1.2 billion, up 59 percent versus the third quarter 2013

Third quarter 2014 GAAP net profit was $942 million, a record for any quarter in the history of American Airlines

Returned $185 million to shareholders through the payment of $72 million in quarterly dividends and the repurchase of $113 million of common stock through the Company’s stock repurchase program

Declared a dividend of $0.10 per share to be paid on November 17, 2014 to shareholders of record as of November 3, 2014

For the third quarter 2014, American Airlines Group reported a record GAAP net profit of $942 million. This compares to a GAAP net profit of $289 million in the third quarter 2013 for AMR Corporation prior to the merger.

The Company believes it is more meaningful to compare year-over-year results for American Airlines and US Airways excluding special charges and on a combined basis, which is a non-GAAP formulation that combines the results for AMR Corporation and US Airways Group. On this basis, third quarter 2014 net profit excluding net special charges was a record $1.2 billion, or $1.66 per diluted share. This represents a 59 percent improvement over the combined non-GAAP net profit of $771 million excluding net special charges for the same period in 2013. The Company’s third quarter 2014 pretax margin excluding net special charges was 11 percent. See the accompanying notes in the Financial Tables section of this press release for further explanation of this presentation, including a reconciliation of GAAP to non-GAAP financial information.

“We are very pleased to have reported a record profit for each quarter so far in 2014,” said Chairman and CEO Doug Parker. “We anticipate we will also post a record profit for both the fourth quarter and full year 2014. This performance reflects the strength of our merger and the commitment of our team. Our over 100,000 team members are doing an excellent job of integrating our airlines and providing outstanding service to our customers. While some of the biggest tasks in our integration still lie before us, the significant accomplishments to date reinforce our confidence that we are well on our way to restoring American as the world’s greatest airline. Thanks to our team, American is in excellent position for success in 2015 and beyond.”

Revenue and Cost Comparisons

Total revenues in the third quarter were a record $11.1 billion, an increase of 4.4 percent versus the third quarter 2013 on a combined basis, on a 2.0 percent increase in total available seat miles (ASMs). Consolidated passenger revenue per ASM (PRASM) was a record at 14.12 cents, up 1.0 percent versus the third quarter 2013 on a combined basis, driven by a record yield of 16.93 cents, up 2.6 percent year-over-year.

Total operating expenses in the third quarter were $9.9 billion, an increase of 3.5 percent over combined third quarter 2013. Third quarter mainline cost per available seat mile (CASM) was 13.28 cents, up 1.3 percent on a 2.1 percent increase in mainline ASMs versus combined third quarter 2013. Excluding special charges and fuel, mainline CASM was up 0.7 percent compared to the combined third quarter 2013, at 8.35 cents. Regional CASM excluding special charges and fuel was 15.52 cents, up 3.7 percent on a 1.0 percent increase in regional ASMs versus combined third quarter 2013.

Liquidity and Financing Transactions

At September 30, 2014, American had approximately $8.8 billion in total cash and short-term investments, of which $875 million was restricted. The Company also had an undrawn revolving credit facility of $1.0 billion.

During the third quarter, the Company Issued $957 million principal amount of 2014-1 Enhanced Equipment Trust Certificates (EETC) at a blended interest rate of 3.8 percent and issued $750 million principal amount of 5.5 percent senior unsecured notes due in 2019.

Also in the third quarter, the Company returned $185 million to its shareholders through the payment of $72 million in quarterly dividends and the repurchase of $113 million of common stock, or 2.9 million shares. The Company also purchased approximately 432,000 shares from its Disputed Claims Reserve at the prevailing market price to satisfy certain tax obligations resulting from the July 1, 2014, distribution.

As of September 30, 2014, $721 million of the Company’s unrestricted cash balance was held in Venezuelan bolivars, valued at the weighted average applicable exchange rate of 6.41 bolivars to the dollar. The Company’s cash balance held in Venezuelan bolivars decreased $70 million from the June 30, 2014, balance of $791 million, due primarily to $48 million in repatriations in the third quarter of 2014 ($31 million valued at 6.3 bolivars to the dollar and $17 million valued at 10.6 bolivars to the dollar). This balance also reflects the Company’s significant reduction in capacity in this market, pending further repatriation of funds and due to a decrease in demand for air travel resulting from the effective devaluation of the bolivar. The Company continues to work with Venezuelan authorities regarding the timing and exchange rate applicable to the repatriation of funds held in local currency. The Company is monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for potential impairment.

In early October, the Company arranged a new credit facility consisting of a fully-drawn $750 million term loan that matures in October 2021 and an undrawn $400 million revolving credit facility that matures in October 2019. Collateral for the new credit facility consists of certain slots, gates and route authorities. Also in early October, the Company increased its existing $1 billion revolving credit facility by $400 million and extended its maturity date from June 2018 to October 2019. As a result of these transactions, the Company’s undrawn revolving credit facility is now $1.8 billion.

On October 22, the Company’s Board of Directors declared a dividend of $0.10 per share for shareholders of record as of November 3, 2014. The dividend will be paid on November 17, 2014.

Merger Integration Developments

Reached a tentative agreement with the Association of Professional Flight Attendants on a joint collective bargaining agreement covering more than 24,000 flight attendants at American and US Airways. This agreement is pending ratification by the flight attendants

Recalibrated the schedule at our Miami hub to increase the number of available connections and optimize revenue

Combined operations at 82 airports since the merger, including the Company’s hub at Chicago O’Hare

Broke ground on our new state of the art Robert W. Baker Integrated Operations Center in Fort Worth, with completion planned for the third quarter of 2015

American flight attendants began exclusively using an electronic flight attendant manual on a handheld tablet, making the documents easier to access for flight attendants and reducing weight on each aircraft. US Airways flight attendants will begin using eManuals after the two carriers achieve a single operating certificate next year

Rebranded nine Admirals Club® lounges at eight airports, including Ronald Reagan Washington National Airport, Boston Logan Airport, Pittsburgh International Airport, and Tampa International Airport

Fleet and Network Developments

As part of its plan to modernize its fleet, the Company took delivery of 22 new mainline aircraft during the third quarter

US Airways became fully integrated in the trans-Atlantic joint business by launching a codeshare agreement with Finnair, providing customers increased access to Helsinki and beyond

Applied for new international service between Dallas/Fort Worth and Beijing. This will be the Company’s 11th route between the U.S. and Asia

Special Items

In the third quarter, the Company recognized a total of $281 million in net special charges, including:

$223 million net special operating charges, which principally included $168 million of mainline and regional merger integration expenses and an $81 million charge to revise prior estimates of certain aircraft residual values. These charges were offset, in part, by a net $40 million credit for bankruptcy related items consisting of fair value adjustments for bankruptcy settlement obligations
$50 million of nonoperating items, primarily due to early debt extinguishment costs related to American’s 7.5 percent senior secured notes and other debt
$8 million in non-cash deferred income tax provision related to certain indefinite-lived intangible assets

Copyright Photo: Jay Selman/AirlinersGallery.com. US Airways is now repainting its fleet, including the older Boeing 757-200s. Boeing 757-23N N203UW (msn 30548) taxies at the Charlotte hub.

American Airlines (current livery): AG Slide Show

US Airways: AG Slide Show

American Airlines-US Airways: AG Slide Show

Icelandair is coming to Portland, Oregon next summer

Icelandair (Keflavik) will begin seasonal nonstop service from Portland, Oregon to Reykjavik, Iceland via Keflavik International Airport beginning on May 20, 2015 and continuing through October 21, 2015. With this new route, Icelandair now provides flights to its third gateway in the Pacific Northwest region of North America, and 14th overall in the United States and Canada.

Icelandair’s 2015 route network is the largest in the airline’s history with flights to more than 20 destinations throughout Europe. As a result of this announcement, the Portland metro area’s 2.3 million residents will gain access to one of the regions fastest elapsed flying times to popular European destinations including London, Copenhagen, Paris, Stockholm and Munich. With low fares in three cabins of service, personal in-flight entertainment, on-board Wi-Fi access, and the exciting option of booking an Icelandair Stopover in Iceland at no additional airfare for up to seven nights, Icelandair is excited to bring this refreshing new alternative to Oregon.

Service from Portland International Airport (PDX) will operate on Wednesdays and Fridays with departures at 3:40 pm (1540), arriving at Icelandair’s hub at Keflavik International Airport the following morning at 6:15 am (0615), with a total flight time of just over seven hours. Return service departs Keflavik on Tuesdays and Thursdays at 5:15 pm (1715), with same-day arrival in Portland at 6:15 pm (1815).

Icelandair offers service to Iceland from Boston, New York-JFK, Washington (Dulles), Seattle/Tacoma, Denver, Toronto (Pearson) and Edmonton, with seasonal service from Newark, Minneapolis/St. Paul, Sanford (near Orlando), Portland, Vancouver, Halifax, and Anchorage.

Route Map:

Icelandair PDX 9.2015 Route Map

The company is also increasing the frequencies next summer on the Newark, Toronto and Washington routes.

In other news, an Air Iceland pilot allowed his passengers to get an up-close view of the simmering Bárðarbunga volcano. Icelandair posted this report and photos on their website:

Icelandair Group passengers Erla Vinsý and Odee were two of a few lucky customers on board a recent flight with our sister company Air Iceland during the morning of September 3, 2014. With the flight path routing over central Iceland, the chance of seeing the volcanic fissure eruption in the Bárðarbunga area quickly turned into a rare opportunity thanks to clear skies, and the Air Iceland pilot didn’t let the moment pass them by. Taking a short detour via a circle back around the eruption area, passengers on both sides of the aircraft were treated to an aerial view of the eruption while flying safely over the center of the action, allowing Erla and Odee to take these unique photographs of Iceland’s nature and power in action. With brightly-colored lava seeping through the earth’s crust and steam billowing from below the surface, the passengers and crew of this Air Iceland flight were provided a memory they won’t soon forget. Tourists in Iceland are now booking all available charter flights for sightseeing into the uninhabited interior of Iceland where the volcano is putting on its show. For amateur and professional photographers and filmmakers alike, this is the chance of a lifetime. We would like to thank Erla and Odee for sharing their photographs with us!

Bárðarbunga volcano photos

Copyright Photo: Luimer Cordero/AirlinersGallery.com. Boeing 757-256 TF-LLX (msn 29311) arrives in Miami with a partial livery.

Icelandair: AG Slide Show

Allegiant Air is dropping Bellingham-Hawaii service

Allegiant Air (Las Vegas) will not be renewing Hawaii service from Bellingham, Washington this coming winter according to the Bellingham Herald. The airline has reduced its full-year Hawaiian flying from Honolulu to only two mainland points; the Las Vegas base and Los Angeles. Other destinations (Boise, Eugene, Fresno, Mesa, Spokane and Stockton) will continue to have seasonal service to Honolulu but the number of flights has been dropping since the peak.

Read the full report: CLICK HERE

Copyright Photo: Eddie Maloney/AirlinersGallery.com. Boeing 757-204 N902NV (msn 26964) lands in Las Vegas.

Allegiant Air: AG Slide Show

United Airlines announces new and improved in-flight food and beverage service for first class and business domestic customers

United Airlines (Chicago) has issued this statement:

United Airlines today unveiled new, improved lunch, dinner and beverage choices for domestic first-class customers, offering travelers chef-inspired meals and premium beverages that elevate their in-flight experience.

Among the changes:

New, premium salads beginning this month for customers flying United First and United Business within North America;

New, premium sandwiches and wraps, beginning Sept. 1, for United First and United Business customers within North America;

Addition of Prosecco sparkling wine in premium cabins beginning this fall;

Introduction of premium-cabin meals to flights of shorter duration, beginning in 2015; and

Fresh meal options for premium-cabin customers on United Express flights, beginning in 2015.

Premium-Cabin Refresh

This month, United began offering customers in premium cabins on North America flights four new salad entrée choices – a Southwestern salad, an Asian-style noodle salad, a seasonal greens with roast beef and blue cheese salad and a Strawberry Fields salad – replacing the previous chicken and shrimp salad options.

In September, premium-cabin customers on flights within North America will enjoy new chilled sandwiches and wraps – Italian prosciutto on tomato focaccia, a Thai-style chicken wrap, Cobb salad wrap and caprese on Asiago baguette – as well as new warmed options – turkey and Swiss on cranberry baguette, ham and Swiss on pretzel baguette, chicken and mozzarella on tomato focaccia and roast beef and cheddar on Asiago baguette.

Designed by United’s team of chefs, the new salads and sandwiches will be made fresh daily and paired with a gluten-free soup, along with United’s signature service elements, including warmed nuts, premium snacks and warmed cookies.

United Asiago Baquette (United)(LR)

Copyright Photo: United Airlines. The caprese on asiago baguette is one of the new sandwiches United Airlines will introduce in September 2014 in premium cabins on North America flights.

On trans-continental flights and on longer mid-continental dinner flights, the airline will continue to offer customers a choice between a pasta dish and a chicken or beef option.

United basil soup (United)(LR)

Copyright Photo: United Airlines. Tomato basil gluten-free soup.

“These changes mark the beginning of an extensive overhaul of our North America and international food service, offering travelers a level of service above that offered by our peers,” said Lynda Coffman, United’s vice president of food services. “Our new selections offer customers more of what they tell us they want when they travel – variety, bold flavor combinations and higher quality.”

Additional Food and Beverage Changes

United wines (United)(LR)

Copyright Photo: United Airlines.

Beginning this fall, United will add Prosecco sparkling wine to its premium-cabin beverages on mainline North America flights.

By mid-2015, United will further enhance its in-flight dining by:

Launching completely redesigned menu concepts and expanding premium-cabin meals within North America to flights that are more than two hours and 20 minutes, or 800 miles;

Upgrading premium-cabin meal service on domestic and international United Express flights, replacing snack boxes with freshly prepared food; and

Significantly enhancing United Economy meals and beverages on long-haul international flights.

United offers in-flight meals and snacks depending on flight duration, departure time, origin and destination. Specific breakfast, lunch and dinner parameters are available at united.com.

Customer Investments

The airline’s food and beverage enhancements are United’s latest investment in its customers’ onboard experience. The company also offers:

Premium-cabin, flat-bed seats on every long-haul international flight to and from the continental United States – the only U.S. airline to do so;

Wi-Fi on more than 290 aircraft, including the airline’s entire Airbus and Boeing 747 fleets;

Personal device entertainment on dozens of aircraft; and

Live television on more than 200 aircraft, the world’s largest fleet of aircraft with live television.

Top Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 757-222 N546UA (msn 25367) completes its final approach to the runway at John F. Kennedy International Airport in New York.

United Airlines (current): AG Slide Show

Jet2 expands at Newcastle and Belfast for the summer of 2015

Jet2.com (Jet2holidays) (Leeds/Bradford) is continuing its growth at Newcastle International Airport with the launch of four brand new destinations for the summer of 2015. The discount airline will launch new routes from NCL to Antalya (Turkey) (weekly, May 22), Larnaca (Cyprus) (weekly May 27), Malta (weekly May 21) and Zante (Zakinthos) (weekly May 27).

The company has also announced a significant expansion plans at Belfast International Airport, including new routes, an additional aircraft plus even more seats for the summer of 2015. The new routes include Prague and Rome and the sunshine hotspots of Gran Canaria and Zante.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 757-27B G-LSAE (msn 24135) in the Jet2holidays livery (which is based on Allegiant Air’s color scheme) departs from Tenerife Sur. The 757 was previously painted in a promotional livery for Newcastle International Airport when they celebrated 75 years .

Jet2: AG Slide Show

 

 

Monarch Airlines secures an AOC from EASA

Monarch Airlines (London-Luton) has secured an European Air Operators Certificate (AOC) from EASA. The company issued this statement:

Monarch, the leading scheduled airline to leisure destinations is the first major UK airline to have completed all requirements for the issue of an EASA Air Operators Certificate (AOC). The main feature of the new EASA regulations is the introduction of a mandatory Safety Management System (SMS) by which each operator must demonstrate a robust safety culture and a risk based approach to all aspects of aircraft operations. Monarch Airlines’ new AOC will become effective from October 28, 2014; allowing the carrier to continue to operate as a transport category airline under the new regulations.

The civil aviation regulation is to be harmonized at European level by October 28, 2014, meaning all airlines must conform to EASA regulations by this point. The airlines transition involved the production of compliant Operations Manuals and the introduction of new Safety Management and Compliance Monitoring Manuals to meet the requirements of the new Implementing Rules (IRs). Monarch Airlines’ prompt submission of the relevant documents to the UK CAA for approval was eight weeks ahead of the deadline.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Monarch will phase out is last three Boeing 757-200s at the end of the summer 2014 season ending a long era with the twin jet. However the company will remain a Boeing operator with its upcoming order for 30 Boeing 737 MAX 8s. Boeing 757-2T7 G-DAJB (msn 23770) taxies past the camera at Palma de Mallorca (PMI).

Monarch Airlines: AG Slide Show

Aer Lingus has its highest second quarter operating results since 2010, wants to expand to North America, especially Dallas/Fort Worth

Aer Lingus (Dublin) posted a first half net loss of €12.3 million ($16.5 million), narrowed from a €23.5 million ($31.5 million) net loss in the same period a year ago. This includes the highest second quarter operating result since 2010 despite a €10 million negative effect of industrial action.

Read the full report: CLICK HERE

The airline has been very happy with the  results of new service to San Francisco and Toronto and wants to further expand with new routes to North America. Dallas/Fort Worth is high on their list for new routes according to this article by the Irish Independent.

Read the full story: CLICK HERE

Copyright Photo: TMK Photography/AirlinersGallery.com. Aer Lingus is using Air Contractors Boeing 757-200s formerly operated by Finnair for the Toronto route. Boeing 757-2Q8 EI-LBR (msn 28167) taxies at Toronto (Pearson).

Aer Lingus: AG Slide Show

WestJet reports a record 2Q net profit of $51.8 million, will operate Boeing 767-300 ERs, Encore orders 5 more Q400s

WestJet (Calgary) today announced its second quarter results for 2014, with net earnings of $51.8 million (all amounts in Canadian dollars), or $0.40 per fully diluted share, as compared with the net earnings of $44.7 million, or $0.34 per fully diluted share reported in the second quarter of 2013. Based on the trailing twelve months, the airline achieved a return on invested capital of 13.7 per cent, consistent with the 13.7 per cent reported in the previous quarter.

“We had a great second quarter, reporting record earnings, exceeding our ROIC target for the eighth consecutive quarter, and achieving an on-time performance rate of 84.5 per cent, a year over year improvement of 3.5 percentage points,” said WestJet President and CEO Gregg Saretsky. “We continue to execute on our growth plans, including new service to Dublin, Ireland, success with our fare bundles initiative, and the expansion of WestJet Encore. Encore celebrated its first birthday in June, recently welcomed its one-millionth guest, and exercised five additional purchase options for Q400 aircraft. I want to thank all of our 10,000 WestJetters for their commitment to providing our award winning brand of friendly caring service, which is the foundation of our success.”

On July 7, WestJet announced that it was in the advanced stages of sourcing aircraft for its entry into wide-body service. A natural, next-step evolution for the airline, WestJet has recently selected four Boeing 767-300 ER aircraft (below) which will initially operate on routes between Alberta and Hawaii during the winter season beginning in late 2015. The airline’s current winter service between Alberta and Hawaii, via two Boeing 757-200s operated by Thomas Cook, is ending in the spring of 2015. WestJet expects to expand its operation into overseas markets starting in the summer of 2016. Further announcements regarding WestJet’s wide-body schedule will be released at a later date.

WestJet 767-300 WL (95)(Flt)(WestJet)(LRW)

Image: WestJet.

On July 28, 2014, WestJet’s Board of Directors declared a cash dividend of $0.12 per common voting share and variable voting share for the third quarter of 2014, to be paid on September 30, 2014, to shareholders of record on September 17, 2014. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.

In other news, WestJet Encore Ltd. has signed a firm purchase agreement for five Bombardier Q400 NextGen airliners. This transaction is a conversion of a batch of five options booked by the carrier’s parent company WestJet and follows the first conversion of five option aircraft announced on March 27, 2014, bringing the number of option aircraft exercised to 10. The initial total of 25 option aircraft was part of the original contract announced on August 1, 2012 that included WestJet’s firm order for 20 Q400 NextGen airliners.

WestJet Encore launched in June 2013 operating 10 departures daily to two destinations with two Bombardier Q400 NextGen aircraft and 131 employees. Today, it operates 90 departures daily from hubs in Calgary, Alberta and Toronto, Ontario to 19 destinations with 13 Bombardier Q400 NextGen aircraft and approximately 500 employees. The airline has announced plans to introduce service to Québec City, Québec; Fredericton, New Brunswick and Penticton, British Columbia in 2015.

Copyright Photo: Matt Dueck/AirlinersGallery.com. WestJet will become a new Boeing 767-300 operator. The airline will trade in its wet leased Boeing 757-200s (currently operated by Thomas Cook Airlines) for larger wide-body Boeing 767-300 ERs in 2015. The pictured Boeing 757-28A N750NA (msn 26277) was previously operated by North American Airlines in the WestJet brand.

WestJet:

Allegiant announces its 46th consecutive profitable quarter

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported net income of $33.5 million for the second quarter 2014, ending on June 30, up 29.8 percent from the previous second quarter net profit of $25.8 million in 2013.

“We are very proud to report our 46th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We have been working very hard to mitigate the crew training issues that have impacted us in the past two quarters. Although these issues did contribute to operational inefficiencies and incremental costs during this past quarter we are trending in the right direction and hope these issues have minimal impact in the third quarter. On a much more positive note, in June we completed multiple aircraft transactions to add 14 additional aircraft to our future fleet and raised $300 million of debt in the high yield market with very competitive terms. We could not have done this without the tremendous effort of our Team Members.”

Notable company highlights:

Increased operating margin, EBITDA margin and return on capital employed versus the same time last year

Acquired 12 incremental A319 Airbus aircraft for delivery in 2018. See table below for financial impact of this transaction

Signed agreements to acquire one A320 and one A319 to be in service in 2015 and 2016, respectively

Entered into a letter of intent to purchase eight A319s, previously committed to under operating leases.

Two of these are currently under operating lease to Allegiant, one is expected to be delivered in 2014 and five are expected to be delivered in 2015

In-service Airbus fleet of 10 aircraft accounted for 21.9 percent of total ASM production during the quarter

Prepaid $121.1 million, 5.75 percent term loan facility due 2017

Raised $300 million, 5.50 percent senior unsecured notes due 2019, corporate rating of BB- by Standard & Poor’s and Ba3 by Moody’s

Raised $85.3 million collateralized by 53 MD-80 and six 757 aircraft

Initiated service on 12 new routes in the second quarter

Named Top-Performing Airline in North America by Aviation Week for third consecutive year. The Company also has the best five-year average score of any airline worldwide, 76.9, more than 5 points higher than the second-ranked carrier

Read the full report: CLICK HERE

Fleet Details:

Allegiant Fleet Numbers 7.2014 (LRW)

 

 

Copyright Photo: The fleet will grow by 10 aircraft (mainly Airbus A319s and A320s) in the next two years while the Boeing 757s remain constant at six aircraft. Boeing 757-204 N903NV (msn 26966) is tugged off the gate at Los Angeles International Airport.

Allegiant: AG Slide Show

 

 

Delta reports second quarter net income of $889 million

Delta Air Lines (Atlanta) today reported financial results for the second quarter (June quarter). Key points include:

Delta’s pre-tax income for the June 2014 quarter was $1.4 billion, excluding special items1, an increase of $593 million over the June 2013 quarter on a similar basis. Delta’s net income for the June 2014 quarter was $889 million, or $1.04 per diluted share, and its operating margin was 15.1 percent, excluding special items.

On a GAAP basis which includes special items, Delta’s pre-tax income was $1.3 billion, operating margin was 14.9 percent and net income was $801 million, or $0.94 per diluted share.

Results include $340 million in profit sharing expense in recognition of Delta employees’ contributions toward achieving the company’s financial goals.

Delta generated over $2 billion of operating cash flow and $1.5 billion of free cash flow during the June 2014 quarter. As of mid-July, the company has used its strong cash generation in 2014 to reduce its adjusted net debt below $8 billion, contribute more than $900 million of funding to its defined benefit pension plans, and return $550 million to shareholders through dividends and share repurchases.

“Delta’s performance this quarter, with 9 percent top line growth, more than 4 points of margin expansion and $1.5 billion of free cash flow, shows the financial strength and resilience of our company. We expect our September quarter performance will be even stronger, as we expand our operating margins to 15-17% and further improve our profitability,” said Delta chief executive officer Richard Anderson. “All credit goes to Delta people worldwide who not only produced this record financial performance, but also continue to lead the industry in operational reliability and customer satisfaction.”

Revenue Environment

Delta’s operating revenue improved 9 percent, or $914 million, in the June 2014 quarter compared to the June 2013 quarter, driven by continued strength in corporate and domestic revenues. Traffic increased 5.0 percent on a 3.2 percent increase in capacity.

Passenger revenue increased 9 percent, or $772 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 5.7 percent year-over-year with a 3.8 percent improvement in yield. Seat-related products and other merchandising initiatives increased revenues by $45 million versus the prior year period.

Cargo revenue decreased 1 percent, or $2 million, as lower freight yields were partially offset by higher volumes.

Other revenue increased 15 percent, or $144 million, driven by higher joint venture and SkyMiles revenues.

Cost Performance

Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was flat in the June 2014 quarter on a year-over-year basis as the benefits of Delta’s domestic refleeting and other cost initiatives offset the company’s investments in its employees, products and operations. GAAP consolidated CASM decreased 0.4 percent.

Total operating expense in the quarter increased $249 million year-over-year driven by higher revenue- and volume-related expenses and $222 million higher profit sharing expense. These cost increases were partially offset by lower fuel expense and savings from Delta’s cost initiatives.

Fuel expense declined $168 million driven by hedge benefits, refinery profits and prior year mark to market adjustments that offset higher market fuel prices and higher consumption. Delta’s average fuel price was $2.93 per gallon for the June quarter, which includes $99 million in settled hedge gains. Operations at the refinery produced a $13 million profit for the June quarter, a $64 million improvement year-over-year.

Excluding special items, non-operating expense declined by $58 million as a result of lower interest expense, lower foreign exchange impact, and a $7 million gain associated with Delta’s 49 percent ownership stake in Virgin Atlantic. Including a $111 million special item for loss on extinguishment of debt resulting from Delta’s debt reduction initiatives, non-operating expense for the quarter increased by $53 million.

Tax expense increased $496 million compared to the prior year quarter, as the company now recognizes tax expense for financial reporting purposes following the reversal of its tax valuation allowance at the end of 2013.

“With our domestic refleeting continuing and our cost initiatives taking hold, we have been able to keep our non-fuel unit cost growth below 2 percent for each of the last four quarters,” said Paul Jacobson,

Delta’s chief financial officer. “Not only are these initiatives driving our current performance, but they are also building a foundation for sustaining this performance into the future.”

Cash Flow

Cash from operations during the June 2014 quarter was $2.1 billion, driven by the company’s June quarter profit and the normal seasonal increase in advance ticket sales, which were partially offset by $300 million in contributions to the defined benefit pension plan. The company generated $1.5 billion of free cash flow.

Capital expenditures during the June 2014 quarter were $520 million, including $343 million in fleet investments. During the quarter, Delta’s net debt maturities and capital leases were $851 million.

With its strong cash generation year to date, the company has returned $550 million to shareholders as of mid-July. Through its $0.06 per share quarterly dividend, the company paid $101 million to shareholders. In addition, the company repurchased 12.4 million shares at an average price of $36.33 for a total of $450 million. These repurchases represent $200 million under the May 2014 $2 billion authorization, in addition to completing the May 2013 $500 million authorization.

Delta ended the quarter with $6.0 billion of unrestricted liquidity and adjusted net debt of $7.9 billion. The company has now achieved more than $9 billion in net debt reduction since 2009.

Jacobson continued, “By taking a balanced approach to capital deployment, Delta has been able to invest more than $1 billion in our fleet and other products, while also reducing our debt to its lowest level in twenty years, contributing over $900 million to our pension plans, and returning $550 million to shareholders so far this year.”

Company Highlights

Delta has a strong commitment to its employees, customers and the communities it serves. Key accomplishments in the June 2014 quarter include:

Recognizing the achievements of Delta employees toward meeting the company’s financial and operational goals with $476 million of incentives so far this year, including accruing $439 million in employee profit sharing and paying $37 million in Shared Rewards;

Improving its global network with new service connecting Delta’s hubs in New York and Seattle/Tacoma with the key business destinations of London-Heathrow, Zurich, Rome, Hong Kong and Seoul;

Announcing an order for 15 Airbus A321 aircraft, adding to the 30 aircraft of this type already on order. These economically efficient, proven-technology aircraft will provide an improved customer experience as they replace similar, less-efficient domestic aircraft that are being retired as part of the Delta’s domestic fleet restructuring;

Completing modifications on its international widebody fleet, making Delta the only U.S. carrier to offer full flat-bed seats with direct aisle access in BusinessElite and personal, on-demand entertainment at every seat on all long-haul international flights; and

Celebrating the grand opening of the new Delta Flight Museum, which coincided with the 85th anniversary of Delta’s first passenger service. The museum is housed in the airline’s two original maintenance hangars with exhibits that chronicle more than eight decades of Delta history and the growth and development of commercial aviation.

Special Items

Delta recorded a net $88 million special items charge in the June 2014 quarter, including:

a $69 million charge for debt extinguishment associated with Delta’s debt reduction initiative; and
a $20 million charge associated with Delta’s domestic fleet restructuring.

Delta recorded a net $159 million special items charge in the June 2013 quarter, including:

a $125 million mark-to-market adjustment on fuel hedges settling in future periods; and
a $34 million charge for facilities, fleet and other items, primarily associated with Delta’s domestic fleet restructuring.

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 757-2Q8 N709TW (msn 28168) arrives in New York (JFK) with a special tribute to retired New York Yankees pitcher Mariano Rivera “42”.

Delta Air Lines (current): AG Slide Show

La Compagnie launches scheduled business class operations to Newark

La Compagnie (formerly Dreamjet) (Paris-CDG) yesterday (July 21) evening launched its business class passenger operations. Flight BO 100 departed at 18:30 from Terminal 1 at Charles de Gaulle Airport (CDG) to Newark with the pictured Boeing 757-256 F-HTAG (msn 29307).

Copyright Photo: Manuel Negrerie/AirlinersGallery.com.

Is Monarch Airlines close to ordering Boeing jets?

Monarch Airlines (London-Luton) may be close to renewing its connection with Boeing. The airline currently operates three Boeing 757-200s which are being replaced with newer Airbus A321s. Monarch has had a long association with Boeing dating back to the 707s and 720Bs and the 737 Classics (-200s and -300s).

According to Reuters, citing industry sources, the British airline is close to ordering 30 aircraft from Boeing. The aircraft were unspecified. Could it be new Boeing 737 MAX aircraft?

In August 2006, Monarch ordered six Boeing 787-8 Dreamliners but this was cancelled in September 2011 as the airline stated it has “reassessed its decision”.

If correct, this would possibly unseat Airbus as the carrier’s main supplier of aircraft.

Read the full article: CLICK HERE

Copyright Photo: Paul Denton/AirlinersGallery.com. The historic connection to Boeing is fading fast. The last Boeing 757s will be phased out at the end of the current summer season. Boeing 757-2T7 G-MONJ (msn 24104) departs from Geneva.

Monarch Airlines:

American Airlines Group to repaint the American and US Airways Boeing 757 fleets

American Airlines Group (American Airlines and US Airways) (Dallas/Fort Worth) has informed its employees about the repainting of the American Airlines and US Airways fleets into the 2013 American brand.

In the June 26 issue of Arrivals, the employees were briefed on the repainting process.

Highlights: As expected, the aging fleet of McDonnell Douglas DC-9-82s (MD-82s) and DC-9-83s (MD-83s) of American will not be repainted. This type is being phased out and will be gone in 2018. However the AAG has made the decision to repaint the 35 Boeing 757-200s of American and the 16 Boeing 757-200s of US Airways into the new livery. So far none have been repainted. We are likely to start seeing some soon, especially at US Airways. All will be repainted by the fourth quarter of 2016.

All of the American 777-200s have now been repainted (above).

US Airways has started repainting the Airbus A320 family aircraft: 700, 701, 702, 703, 809, 814, 819, and one other have been repainted. 579, 580, and 581 were all delivered new in American colors. The first Airbus aircraft to be repainted were the former Star Alliance liveried aircraft.

All new arrivals for both American and US Airways are of course, painted in the new American look.

We are likely to still see the American 1968 classic livery lingering on until the fourth quarter of 2017. The American Boeing 737-800s will be the last type to be fully repainted.

Here is the graph sent to the employees:

American-US Airways repainting of the fleet (LRW)

Top Copyright Photo: Jay Selman/AirlinersGallery.com. All of the Triple Sevens have been repainted. Boeing 777-223 ER N790AN (msn 30251) arrives in New York (JFK).

American Airlines (current livery): AG Slide Show

American Airlines (historic liveries): AG Slide Show

US Airways: AG Slide Show

Video: Painting a Boeing 777:

Middle Copyright Photo: Bruce Drum/AirlinersGallery.com. American currently operates 35 Boeing 757-200s as the type is gradually being retired. Boeing 757-223 N624AA (msn 24582) of American Airlines taxies to the gate at the Miami hub painted in the classic 1968 livery.

Bottom Copyright Photo: Stefan Sjogren/AirlinersGallery.com. US Airways is now down to just 16 Boeing 757-200s. Boeing 757-2B7 N938UW (msn 27246) prepares to land in Stockholm (Arlanda).

Dreamjet becomes La Compagnie, ready to start business class flights on July 11

La Compagnie 757-200 (14)(Flt)(LRW)

Dreamjet (Paris) has become La Compagnie (The Company). The would-be airline has filed an application with the Department of Transportation (DOT) to operate all-business Boeing 757-200 flights from Paris (CDG) to Newark. The new airline is now planning to launch operations on July 11.

La Compagnie logo (LRW)

Frantz Yvelin is the founder and visionary, who perviously founded L’Avion (Paris).

Images: La Compagnie.

La Compagnie FAs (La Compagnie)(LR)

La Compagnie seat (LR)

Video: Interview with Frantz Yvelin (in French):

 

Delta today launches full flat-bed seats in BusinessElite on all flights between New York-JFK and Los Angeles

Delta Air Lines (Atlanta) following on the start of JetBlue Airways’ trans-con Airbus A321 Mint service, today launches a significant upgrade to its service between New York’s John F. Kennedy International Airport and Los Angeles International Airport with the introduction of three Boeing 757-200 aircraft featuring full flat-bed seats in the BusinessElite cabin. These aircraft join Delta’s existing international 767-300 ERs serving the New York-Los Angeles route, which connects the two largest U.S. commercial centers eight times daily with the seats, amenities and service that travelers expect from a global airline.

All flights between New York-JFK and Los Angeles, San Francisco and Seattle/Tacoma will feature flat-bed seats on Boeing 757 and 767 aircraft by the summer of 2015.

Trans-continental 767 aircraft

The 767 transcontinental product features updated interiors including 26 full flat-bed BusinessElite seats with direct aisle access at every seat in a 1-2-1 configuration. The 21-inch-wide seats offer an average bed length of 79 inches and feature a 10.6-inch video monitor. The 767s are configured with 29 Economy Comfort seats featuring 35 inches of pitch and up to 50 percent more recline. Each of the 171 seats in the economy cabin features a 9-inch video monitor and USB power. Standard 110v power is available in the BusinessElite cabin and Economy Comfort section.

Trans-continental 757 aircraft

The 757 trans-continental aircraft includes 16 full flat-bed seats arranged in a 2-2 configuration in the BusinessElite cabin. Each seat is 20 inches wide and is expandable up to 22 inches with an average bed length of 76 inches. Cabin mood lighting and a high-definition, 16-inch video monitor at each seat further enhance the onboard experience. The updated 757 trans-continental aircraft includes changes to the economy cabin with 44 extra-legroom Economy Comfort seats which offer 35 inches of pitch and up to 50 percent more recline in a 3-by-3 configuration in addition to 108 standard economy seats.

Delta 757-200 trans-con BusinessElite cabin (Delta)(LRW)

Above: The Boeing 757-200 trans-con BusinessElite cabin:

Trans-continental BusinessElite

In addition to the 757 and 767 trans-continental full flat-bed seat updates, customers will enjoy a gourmet three-course lunch and dinner menu from renowned chef Michael Chiarello paired with wine from Master Sommelier Andrea Robinson’s specially curated Delta Winemaker Series. Additional touches like Westin Heavenly In-Flight bedding, a Tumi amenity kit featuring skincare products from Malin+Goetz, a noise-reduction headset and sparkling wine round out the BusinessElite experience.

Delta Air Lines 757 Transcon Economy Comfort Seat

Above: The Boeing 757-200 trans-con Economy class.

Trans-continental Economy Comfort and economy

Earlier this month, Delta announced upgrades to Economy Comfort including complimentary pillows and blankets on all its transcontinental flights between JFK and LAX, SFO, and SEA. Economy Comfort customers also receive a Delta sleep kit, including eye shades and ear plugs, complimentary Luvo snack wraps, a bottle of water and Luvo frozen yogurt bars (on flights departing prior to 9:00 PM).

From New York-JFK to Los Angeles, all seats in the economy cabin feature next generation seat design for more personal space, an adjustable headrest, a nine-inch seatback video monitor and standard 110v and USB power ports available from each seat. Delta has been enhancing the transcon experience from nose to tail since 2013 with the addition of products such as complimentary Starbucks coffee and headsets for all customers. The New York to Los Angeles transcontinental fleet features in-flight Wi-Fi and an entertainment library of more than 1,000 on-demand options including movies, TV shows, music and games.

Schedule:

Delta 7.2014 trans-con schedule

In other news, Delta Air Lines announced today (June 16) is partnering with the Carbon War Room, a nonprofit founded by Sir Richard Branson, in an effort to accelerate low-carbon jet fuel production worldwide. This is part of the global carrier’s commitment to environmental accountability, transparency and carbon emission reduction.

Delta and Carbon War Room agree that the development of a secure, sustainable, renewable fuels supply will strengthen the airline industry’s access to high-quality jet fuel, reduce price volatility and the industry’s overall carbon footprint and meet the needs of increasingly climate-conscious customers.

Additionally, access to a competitively-priced renewable jet fuel will be advantageous in meeting future regulatory requirements to reduce emissions from the burning of petroleum-based jet fuel.

Additionally, Delta is reducing its carbon footprint through initiatives such as improving the efficiency of our fleet, partnerships in air traffic management, airport and facility green practices and a robust recycling program in the air and on the ground. The airline also has successfully verified its complete greenhouse gas emissions inventory under The Climate Registry and has been named to the Dow Jones Sustainability North American Index three years in a row.

Since 2009, Delta has supported the greenhouse gas emissions goals of IATA and Airlines for America, including improving average annual fuel efficiency by 1.5 percent through 2020, stabilizing emissions with carbon-neutral growth from 2020 and reducing net emissions 50 percent by 2050, relative to 2005.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com (all others by Delta). Boeing 757-232 N617DL  (msn 22907) climbs away from the runway at Los Angeles International Airport (LAX).

Delta Air Lines: AG Slide Show

Video: Gateway to Football:

 

 

United launches nonstop summer Washington Dulles-Madrid flights

United Airlines (Chicago) last night (June 5) launched the Washington area’s only nonstop flights between the airline’s hub at Dulles International Airport and Madrid, with daily summer-season service through September 4, 2014.

Flight UA 163 departs Washington Dulles International Airport at 5:45 p.m. (1745), arriving at Madrid–Barajas Airport at 7:40 a.m. (0740) the following day (all times local). On the return, Flight UA 164 departs Madrid at 11:35 a.m. (1135), arriving in Washington at 2:30 p.m. (1430) the same day. Flight times are seven hours, 55 minutes eastbound and eight hours, 55 minutes westbound.

United will operate the service with Boeing 757-200 aircraft with a total of 169 seats – 16 flat-bed seats in United BusinessFirst and 153 seats in United Economy, including 45 Economy Plus extra-legroom seats.

United Airlines has been serving Spain for more than 20 years. In addition to the Washington–Madrid service, the airline operates Newark-Madrid and Newark-Barcelona service.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 757-222 N574UA (msn 26686) climbs away from Dulles International Airport near Washington, D.C.

United Airlines (current): AG Slide Show

Delta upgrades Economy Comfort on all trans-continental flights from New York-JFK to Los Angeles, San Francisco and Seattle/Tacoma

Delta Air Lines (Atlanta) issued this announcement today concerning its upgraded Economy Comfort:

Delta Air Lines customers will begin receiving upgraded amenities in Economy Comfort including complimentary pillows, blankets and food options on all flights from New York’s John F. Kennedy International Airport to Los Angeles International Airport, San Francisco International Airport and Seattle-Tacoma International Airport beginning on June 4.

Delta Air Lines Luvo Grilled Chicken Hero

Delta Air Lines Luvo Frozen Yogurt Bar

Customers on Delta’s trans-continental routes will continue to receive priority boarding, seats with more legroom, plus free beer, wine and spirits when they purchase Economy Comfort starting at $99 per flight segment.

Delta Air Lines 757 Transcon Economy Comfort Seat

Economy Comfort customers will receive a complimentary pre-set pillow and blanket on their seat while they board the aircraft. After boarding, Economy Comfort customers will be offered a Delta sleep kit, including eye shades and ear plugs, as added amenities. During flight, Economy Comfort customers will enjoy complimentary Luvo snack wraps and a full-size bottle of water for all flights and Luvo frozen yogurt bars as a mid-flight snack on most flights except those flights leaving the West Coast after 9 p.m.

As previously announced, by mid-June, Delta will also operate three newly refurbished Boeing 757-200 aircraft (above) with full flat-bed seats in the BusinessElite cabin. The addition of these aircraft to Delta’s existing 767 aircraft will offer customers full access to flat-bed seats in BusinessElite on all flights between New York-JFK and Los Angeles International Airport. As additional Boeing 757-200 aircraft are refurbished in the coming months, all trans-continental flights between New York-JFK and Los Angeles, San Francisco and Seattle/Tacoma will feature full flat-bed seats in BusinessElite by summer 2015.

Top Copyright Photo (all others by Delta): Michael B. Ing/AirlinersGallery.com. Boeing 757-212 N751AT (msn 23125) departs from Los Angeles International Airport.

Delta Air Lines (current): AG Slide Show

Allegiant starts seasonal service between Cincinnati and Myrtle Beach

Allegiant Air (Las Vegas) yesterday (May 31) started nonstop, seasonal jet service from Cincinnati-Northern Kentucky International Airport to Myrtle Beach. The new flights will operate two times a week until August 11, 2014, flying nonstop from Cincinnati-Northern Kentucky International Airport (CVG) to Myrtle Beach International Airport (MYR). Myrtle Beach becomes the fourth destination available to Allegiant travelers flying out of CVG, including Sanford, Punta Gorda and St. Petersburg/Clearwater.

In other news, Allegiant Travel Company also announced it has borrowed $40.0 million under a loan agreement with CIT, secured by six Boeing 757-200 aircraft (above) and twelve RB211 engines. The notes payable issued under the loan agreement, bear interest at a floating rate based on London Interbank Offered Rate (LIBOR). The term of the loan is 48 months and the proceeds are to be used for general corporate purposes.

Copyright Photo: James Helbock/AirlinersGallery.com. Allegiant’s Boeing 757-204 N906NV (msn 27236) approaches the runway at Las Vegas.

Allegiant Air: AG Slide Show

Icelandair is coming to Birmingham, England on February 5

Icelandair (Keflavik) has announced scheduled flights to Birmingham, England beginning on February 5, 2015. Birmingham is Icelandair’s fifth destination in Great Britain, and the 25th in Europe.

Flights to Birmingham Airport (BHX) will depart on Mondays and Thursdays from Keflavik International Airport (KEF) at 7:50 am (0750), with arrival in Birmingham at 10:25 am (1025). Return service departs Birmingham at 12:25 pm (1225), with an arrival at Keflavik at 3:10 pm (1510).

Icelandair currently offers service to Iceland from Boston, New York (JFK), Washington (Dulles), Seattle/Tacoma, Denver and Toronto (Pearson), with seasonal service from Newark, Minneapolis-St. Paul, Sanford (near Orlando), Edmonton, Vancouver, Halifax and Anchorage. Connections through Icelandair’s hub at Keflavik International Airport are available to more than 20 destinations in Scandinavia, the U.K. and Continental Europe. Only Icelandair allows passengers to stopover in Iceland for up to seven days at no additional airfare.

Copyright Photo: Stefan Sjogen/AirlinersGallery.com. Boeing 757-256 TF-FIZ (msn 30052) arrives in Stockholm (Arlanda).

Icelandair: AG Slide Show

Icelandair Group and its pilots agree to keep talking until September 30, avoiding any further strikes

Icelandair Group (Icelandair) (Keflavik) has signed an agreement with the Icelandic Airline Pilots Association (FIA) for a temporary wage agreement through September 30, 2014. As previously reported, The Icelandic parliament on May 16 prohibited any strikes by the Icelandair pilots. The union had planned to strike on nine days between May 9 and June 3. The group issued this statement:

Icelandair Group and the Icelandic Airline Pilots Association (FIA) signed a wage agreement that is valid until September 30, 2014.

Over the term of the agreement, Icelandair Group and FIA will jointly work towards a long term agreement. The agreement is in broad terms in line with agreements already signed on the Icelandic labor market this year. The agreement will now be presented by FIA to its members that will vote
electronically on the agreement in the next seven days.

At this time is not possible to estimate Icelandair Group’s loss due to FIA’s actions during this industrial dispute.

Copyright Photo: TMK Photography/AirlinersGallery.com. Former American Airlines Boeing 757-223 TF-ISF (msn 24595) approaches the runway at Toronto’s Pearson International Airport (YYZ).

Icelandair: AG Slide Show

United launches Chicago O’Hare-Edinburgh flights

United Airlines (Chicago) yesterday (May 22) began Chicago’s first-ever flights to Edinburgh, Scotland, with summer-season service through October 5, 2014.

The flights will operate five times weekly between May 22 and June 11, daily between June 12 and September 1, and four times weekly between September 2 and October 5 (all dates eastbound).

Flight UA 118 departs Chicago O’Hare International Airport at 6 p.m. (1800), arriving at Edinburgh Airport at 7:45 a.m. (0745) the following day (all times local). On the return, flight UA 119 departs Edinburgh at 10:25 a.m. (1025), arriving in Chicago at 1 p.m. (1300) the same day. Flight times are seven hours, 45 minutes eastbound and eight hours, 35 minutes westbound.

United will operate the service with Boeing 757-200 aircraft with a total of 169 seats – 16 flat-bed seats in United BusinessFirst and 153 seats in United Economy, including 45 Economy Plus extra-legroom seats.

United has been serving Scotland since 1998. In addition to the Edinburgh-Chicago service, the airline operates year-round nonstop service from both Edinburgh and Glasgow to its Newark Liberty International Airport hub.

United Airlines is O’Hare International Airport’s largest airline. United and the United Express carriers operate more than 580 daily flights out of O’Hare. The airline offers more than 50 daily nonstop flights to nearly 40 international destinations in Europe, Asia, Latin America, the Caribbean and Canada.

O’Hare International Airport, the fifth-busiest airport in the world, is United’s hometown hub, with corporate headquarters in Chicago’s Willis Tower.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 757-222 N502UA (msn 24623) departs from Los Angeles International Airport.

United Airlines (current): AG Slide Show

 

Icelandic Parliament jumps into the Icelandair stalled talks with its pilots

Icelandair (Keflavik) and its pilots represented by the Union of Icelandic Pilots have stalled in their negotiations for a new contract. As a result, the Icelandic Parliament passed a bill that directs the airline and its pilots to reach an agreement by June 1 or the dispute will be placed before an industrial disputes tribunal. The bill also restricts any strikes by the pilots. The pilots were planning to strike yesterday (May 16).

The airline was forced to cancel some of its flights today (May 17) due to a “pilot shortage” and issued this statement:

Icelandair regrets to announce cancellation of following flights due to pilot shortage

May 17, 2014 (local times)

FI:670 DEN – KEF 17:20 MDT

FI:612 JFK – KEF 02:10 EDT

FI:613 KEF – JFK 12:25 EDT

FI:603 KEF – YYZ 17:00 GMT

FI:602 YYZ – KEF 21:05 EDT

We apologize to all our customers for the inconvenience this may cause, and we thank you for your understanding. Please be sure to check information on estimated departure times from our homepage.

Read the full story from Iceland Review: CLICK HERE

Copyright Photo: Pepscl/AirlinersGallery.com. Boeing 757-256 TF-FIU (msn 26243) is pictured in an all white fuselage version of the the 1999 livery.

Icelandair: AG Slide Show

Icelandair arrives in Vancouver, British Columbia to a “Viking welcome”

Icelandair 757-200 WL TF-LLX (99)(Viking Welcome)(Nose) YVR (YVR)(LRW)

Icelandair (Keflavik) yesterday (May 14) opened a new route to Vancouver, British Columbia (YVR). The airport issued this statement on its special “Viking” arrival ceremony:

The skies opened on May 14 between Vancouver, Reykjavik and more than 20 European destinations as Icelandair inaugurated its new twice-weekly, seasonal service from Vancouver International Airport (YVR).

Vancouver Airport Authority, in partnership with ground-handler Swissport International Ltd., staged a unique welcome for its newest airline partner with a group of YVR ambassadors-turned-Vikings who pulled Icelandair’s Boeing 757 aircraft to its inaugural gate.

“We’ve been working for years to bring Icelandair to YVR and provide passengers with new connectivity between YVR and Reykjavik, and on to popular Scandinavian destinations like Copenhagen, Oslo and Stockholm,” said Craig Richmond, President and CEO, Vancouver Airport Authority. “This service is a great example of how liberalized air-service agreements enhance travel opportunities and create jobs at YVR and in British Columbia.”

Icelandair’s new service will generate approximately $2 million in wages, $1.1 million in taxes and $3.1 million in GDP through employment at YVR and in B.C.’s hotels, restaurants and tourist attractions. Its flights – which arrive in Vancouver at 5:50 pm on Sundays and Tuesdays and depart at 3:55 pm on Mondays and Wednesdays – will also give businesses more options to reach customers, suppliers and investors in Europe.

“We call 2014 the year of Canada for Icelandair. As we celebrate our inaugural flight from Vancouver, Icelandair now serves four Canadian gateways with service to more than 20 destinations in Europe. Our goal is to continue to grow and develop our network with added frequency and easier connections for all of Canada,” said Birkir Holm Gudnason, CEO for Icelandair. “Icelandair offers our passengers a refreshing alternative when travelling to Europe with three cabins of service, leather seats, in-flight entertainment systems and, by the end of this year, Wi-Fi is scheduled to be available fleet-wide. We see a bright future for British Columbia and look forward to welcoming Vancouver onboard.”

The Icelandair schedule for 2014 is the largest in the company‘s history and will increase by 18 per cent from 2013 with new gateways, new destinations and added frequency from several cities in North America and Europe. Additionally, three Boeing 757 aircraft will be added, enlarging the fleet from 18 to 21 aircraft.

Icelandair offers service to Iceland’s Keflavik International Airport from Boston, New York-JFK, Seattle, Denver and Toronto with seasonal service from Washington, D.C., Minneapolis-St. Paul, Orlando Sanford, Halifax, Anchorage, Newark, Vancouver and Edmonton. Connections through Icelandair’s hub at Keflavik International Airport are available to more than 20 destinations in Europe. Only Icelandair allows passengers to stopover in Iceland at no additional airfare.

Copyright Photos: Vancouver International Airport. A tug decorated like a Viking ship tows an Icelandair Boeing 757-256 (TF-LLX, msn 29311) aircraft to th gate at Vancouver International Airport, during a photo opportunity to mark the airline’s inaugural service between Vancouver and Keflavik (near Reykjavik), Iceland on May 14, 2014.

Icelandair: AG Slide Show

Icelandair 757-200 WL TF-LLX (99)(Grd) YVR (YVR)(LRW)

 

Dreamjet proposes trans-Atlantic Paris-New York Boeing 757 business class flights (sound familiar?)

Dreamjet (Paris) has filed an application with the Department of Transportation (DOT) to operate all-business Boeing 757-200 flights from Paris to New York (the airports were not specified). Dreamjet still needs the final approvals to fly as an airline from the French government. The new paper airline is proposing to start trans-Atlantic operations as early as June if it can get the approvals to fly. However the application has now been grouped with the controversial application of Norwegian Air International of Ireland (Norwegian Air Shuttle).

Frantz Yvelin, founder of the previous all-business L’Avion (which was sold to British Airways), has been rumored as the co-founder of this new venture.

ALPA issued this statement on the application of Dreamjet and Norwegian Air International:

The Air Line Pilots Association, Int’l (ALPA), filed with the U.S. Department of Transportation (DOT) to make clear the stark contrast between Dreamjet’s garden variety application for a DOT foreign air carrier permit and Norwegian Air International’s (NAI) request for authority to operate a business model that will put the livelihood of thousands of U.S. airline workers at risk.

“In contrast, Norwegian Air International’s application is based on an unacceptable business model that should be rejected.”

ALPA’s filing detailed the difference in a reply to NAI’s answer to Dreamjet’s application for a foreign air carrier permit.

“Dreamjet’s application could not be more different from Norwegian Air International’s effort to cheat the system by avoiding Norwegian labor law,” said Capt. Lee Moak, ALPA’s president.

In a reply filed jointly with the Transportation Trades Department, AFL-CIO (TTD) and the European Cockpit Association, ALPA states that NAI’s application for a foreign air carrier permit is a “far cry from that presented to the Department by Dreamjet and by the many other unopposed applications that have been presented to the Department by European carriers following implementation of the Air Transport Agreement.”

With operations centered in Norway, NAI is attempting to operate its international long-haul flights as an Irish airline expressly to avoid Norwegian employment laws. It appears that NAI is using flight crews hired through a Singapore employment company on individual contracts with compensation well below that of its Norway-based employees.

“ALPA has a long history of championing a fair marketplace in which airlines compete on merit, schedule, customer service, and the routes they fly,” continued Moak. “We are not afraid of competition. U.S. airlines and their workers are eager for the opportunity to go head to head with any airline that competes fairly by the rules governing the global marketplace.”

This week, ALPA launched Save Our Skies (SOS), a multiplatform campaign designed to mobilize the American public to voice their collective opposition to actions that are harmful to U.S. airline industry workers’ jobs, including specifically NAI’s application for a foreign air carrier permit.

More than 30,000 people have signed the #denyNAI petition urging Transportation Secretary Anthony Foxx to reject the NAI scheme and stand up for U.S. airline workers, and more than 100 members of Congress have voiced concern or outright opposition to NAI’s DOT application.

“ALPA does not oppose Dreamjet’s application, just as we have not opposed the many other European airline applications under the U.S.-EU Open Skies agreement,” said Capt. Moak. “In contrast, Norwegian Air International’s application is based on an unacceptable business model that should be rejected.”

Read the Wall Street Journal report: CLICK HERE

Copyright Photo: Arnd Wolf/AirlinersGallery.com. L’Avion launched business class flights on January 3, 2007 between Paris (Orly) and Newark using two Boeing 757-200s. However on July 2, 2008 the owners agreed to sell L’Avion in a £54 million deal with British Airways. BA merged L’Avion into its OpenSkies operation on April 4, 2009. L’Avion’s Boeing 757-230 F-HAVN (msn 25140) completes its final approach into Frankfurt in this striking livery.

Icelandair increases Washington Dulles to year-round service

Icelandair (Keflavik) due to increased demand, will move from seasonal to year-round service from Washington Dulles International Airport to Icelandair’s hub at Keflavik International Airport.

Additional flights will begin in January 2015 on Tuesdays, Thursdays, Saturdays and Sundays, providing the Mid-Atlantic region year-round, nonstop access to Iceland for the first time since 2006.

With this announcement of their seventh year-round gateway, Icelandair now offers service from 13 North American cities, making their 2015 route network the largest in its history.

Icelandair provides service to Iceland from Boston, New York (JFK and Newark), Seattle/Tacoma, Denver, Washington, D.C., Toronto (Pearson) and Edmonton, with seasonal service from Minneapolis/St. Paul, Sanford (near Orlando), Anchorage, Halifax, and Vancouver. Connections through Icelandair’s hub at Keflavik International Airport are available to more than 20 destinations in Scandinavia, the U.K. and Continental Europe.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 757-208 TF-FIJ (msn 25085) prepares to land at Washington’s Dulles International Airport (IAD).

Icelandair: AG Slide Show

Route Map:

Icelandair 4.2014 Route Map

Thomson Airways to operate VIP Boeing 757 charter flights again starting in October

Thomson Airways (London-Luton and Manchester) will again operate a series of around-the-world VIP charter flights starting in October with a specially configured VIP Boeing 757-200 for Smithsonian Journeys and National Geographic Expeditions according to Airline Route.

Smithsonian Journeys logo

The first charter flight will depart from Sanford (near Orlando) on October 1 and the second will depart from Washington (Dulles) on October 7.

National Geographic Expeditions logo

Read about the National Geographic trip: CLICK HERE

Map of the National Geographic VIP trip:

National Geographic 2014 Thomson charter route map

Copyright Photo: James Helbock/AirlinersGallery.com. Thomson has painted its VIP Boeing 757s in special color schemes in the past such as this Boeing 757-28A G-OOBE (msn 33100) operated for TCS and Starquest Expeditions.

Thomson Airways: AG Slide Show

Thomson logo-1

Normal routes from Manchester:

Thomson 4.2014 MAN Route Map

 

Four Seasons introduces the Boeing 757 “Four Seasons Jet”

Four Seasons 757-200 WL (Flt)(Four Seasons)(LRW)

Four Seasons Hotels and Resorts (Toronto) has introduced its luxurious “Four Seasons” Boeing 757 concept available for charters starting in February 2015. The company issued this statement and video:

The sky is literally the new limit as Four Seasons continues to reimagine luxury hospitality with the introduction of the Four Seasons Jet, the industry’s first fully branded private jet experience.

With Four Seasons on the fuselage and the iconic Four Seasons logo on the tail, the completely retrofitted Boeing 757 will feature interiors and exterior design customized by the company’s team of design experts, setting the stage for a travel experience like no other. Beginning in February 2015, the Four Seasons Jet will transport 52 guests on bespoke journeys, offering discerning travellers a distinctly Four Seasons travel experience from the moment they book their trip. Four Seasons in-flight staff, including a dedicated on-board concierge, will coordinate with local Four Seasons concierges in each destination to ensure that the Four Seasons Private Jet Experience is nothing short of extraordinary.

An ambition to reimagine the future of luxury hospitality is what first inspired the company to create private jet journeys that focused exclusively on stays at Four Seasons properties worldwide in 2012. Now, with the debut of a fully branded Four Seasons Jet, guests can look forward to individually handcrafted leather flatbed seats, globally inspired cuisine and signature Four Seasons service – on board and on the ground. Global in-flight Wi-Fi keeps guests and staff connected, so that spa treatments, tee times, private excursions and more can be arranged “on the fly” to augment each thoughtfully planned itinerary. Travellers will also have access to exclusive experiences available only to Four Seasons Jet passengers.

Reservations aboard the new Four Seasons Jet are currently open for the following trips:

Around the World, February 2015 – Beginning in Los Angeles and concluding with a celebratory dinner in London, this 24-day, 9-destination journey explores dynamic cities, exotic islands, architectural wonders and awe-inspiring natural environments. Highlighted by an only-by-private-jet stop at the Taj Mahal, all accommodations will be at Four Seasons hotels and resorts.

Backstage with the Arts, April 2015 – In the company of like-minded travellers who share a passion for the arts, guests will visit six cities and spend 16 indulgent days filled with backstage visits to Europe’s most stunning museums, outstanding performances at Teatro alla Scala in Milan and the Estates Theatre in Prague, exquisite dinners and a private gala in the Pavlovsk Palace outside St. Petersburg.

Around the World, August 2015 – Epic is the word to describe this globe-circling expedition through nine destinations, including stays in three of the newest Four Seasons hotels, plus the brand’s very first safari lodge in the Serengeti. From the Forbidden City in Beijing to the medina in Marrakech, the pristine waters of the Maldives to the excitement of the world’s largest fish market in Tokyo and a final, glittering dinner in New York, it will be 24 days no one will ever forget.

Each journey includes air travel and ground transportation, planned excursions, all meals throughout the trip and luxurious accommodations exclusively at Four Seasons.

The Four Seasons Jet, including accompanying staff and crew, may also be privately chartered.

Founded in 1960, Four Seasons continues to define the future of luxury hospitality with extraordinary imagination, unwavering commitment to the highest standards of quality, and the most genuine and customized service. Currently operating 92 hotels and private residences in major city centres and resort destinations in 38 countries.

Video:

Delta completes the installation of full flat-bed seats for its entire international wide body fleet

Delta Air Lines (Atlanta) has completed the installation of full flat-bed seats with direct-aisle access in BusinessElite across its entire international widebody fleet, making it the only U.S. carrier to offer full flat-bed seats and the convenience of direct-aisle access on all overseas flights.

The completed interior fleet modifications include all Delta Airbus A330-200/300, Boeing 767-300ER/400ER, 747-400 and 777-200ER/LR aircraft, which represents Delta’s largest interior fleet modification investment in more than a decade. With these modifications complete, Delta also is the only U.S. domestic carrier to offer personal, on-demand entertainment at every seat on all long-haul international flights.

The fleet modifications are Delta’s latest investment in improving the customer experience. Since 2010, Delta also has:

Launched international Wi-Fi service and completed the installation of Wi-Fi on all domestic, two-class mainline and regional jets, offering more than 400,000 customers per day access to the Internet above 10,000 feet on more than 870 aircraft.

Transformed the sleep experience in the air by offering Westin Heavenly In-Flight bedding for customers in the BusinessElite cabin.

Updated BusinessElite amenity kits with stylish cases from Tumi and skincare product brand Malin+Goetz.
Built a team of celebrity chefs and James Beard Award winners to offer customers great food and wine selections at 30,000 feet.

Introduced International Economy Sleep Kits and added new amenities for its Economy customers on transoceanic flights.

Beginning July 1, 2014, Delta also will operate three updated Boeing 757 aircraft with full flat-bed seats on the trans-continental route between New York’s John F. Kennedy International Airport and Los Angeles International Airport. These will be the first 757 aircraft in service to feature Delta’s previously announced upgrades including full flat-bed seats in BusinessElite on trans-con flights between New York-JFK and Los Angeles, San Francisco and Seattle. All trans-con flights on these routes will feature full flat-bed seats by summer 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Beginning July 1, 2014, Delta also will operate three updated Boeing 757 aircraft with full flat-bed seats on the trans-continental route between New York’s John F. Kennedy International Airport and Los Angeles International Airport. Boeing 757-232 N699DL (msn 29970) departs the runway at Los Angeles International Airport (LAX).

Delta Air Lines: AG Slide Show

US Airways trims the frequencies on some new Charlotte European routes

US Airways (Phoenix) is trimming back on four new European routes from the Charlotte hub according to the Charlotte Observer. The new routes from CLT to Barcelona, Brussels, Lisbon and Manchester were announced in October as daily flights (CLICK HERE to read the original report). However due apparent weak demand, the new flights are now being trimmed back to only four days a week.

Read the full report: CLICK HERE

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 757-2B7 N201UU (msn 27180) arrives back at the Charlotte hub yesterday (April 20).

US Airways: AG Slide Show

 

Aer Lingus launches its inaugural flight to Toronto and its first Boeing 757 from Dublin

Aer Lingus (Dublin) yesterday (April 14) recorded two firsts; the launch of its inaugural flight from Dublin to Toronto (Pearson) and the first operation from Dublin of the Boeing 757-200 aircraft recently added to its trans-Atlantic fleet.

The new service will operate year-round with a daily service between Dublin and Toronto during the summer season and up to four weekly services operating during the winter. This is the fourth trans-Atlantic route launch in recent months and forms part of Aer Lingus’ significant trans-Atlantic growth plan in 2014.

The 2014 growth plan includes;

· New routes from Dublin to Toronto and San Francisco
· The addition of three Boeing 757-200 aircraft to the long haul fleet
· Almost doubling of frequency on services from Shannon to Boston and New York
· The creation of more than 200 new jobs

Aer Lingus customers travelling from over twenty UK and European cities via Dublin to Toronto will also have the option to connect to eight key cities within Canada including Vancouver, Montreal and Calgary.

To support the operation of the new routes from Dublin to Toronto and from Shannon to New York and Boston, Aer Lingus has wet leased three Boeing 757-200 aircraft from ASL Aviation Group. The aircraft are configured with an economy and business class cabin. Business travellers will continue to enjoy the same great level of service; with gourmet meals, sleeper seats and an extensive in-flight entertainment selection.

The ASL Aviation Group, based in Ireland, is a well-established global aviation group providing an unrivalled array of aviation services. The group of aviation companies includes Irish airline Air Contractors and French based airline Europe Airpost as well as two support service companies – ACLAS Global and Air Contractors Engineering; and various leasing entities. The Group’s operations are worldwide with the airlines operating a mixed fleet of wide body, short haul and turboprop passenger and cargo aircraft under their own brands and for a number of leading airlines. ASL Aviation Group has a staff of 1,200, a fleet of ±80 aircraft. ASL is a joint venture between CMB (51%) and 3P Air Freighters (49%).

Copyright Photo: Michael Kelly/AirlinersGallery.com. Formerly operated by Finnair as OH-LBT, Boeing 757-2Q8 EI-LBT (msn 28170), operated by Aero Contractors for Aer Lingus, departs from Dublin on its inaugural flight to Toronto on April 14, 2014.

Aer Lingus: AG Slide Show

Delta paints a Boeing 757 in the 1966 livery for the Delta Flight Museum

Delta Air Lines (Atlanta) has just repainted its Boeing 757-232 registered N608DA (msn 22815) in Atlanta in the “Upright Widget” livery. This color scheme (above) was introduced in 1966 for the fleet and was the longest-running livery for the carrier until the “red dash” color scheme was introduced in 1997.

The aircraft has now been donated to Delta Flight Museum.

Top Copyright Photo: Bruce Drum/AirlinersGallery.com. Sister ship Boeing 757-232 N619DL (msn 22909) taxies at Dallas/Fort Worth when it actually wore the 1966 color scheme (slightly altered in 1976). This is the first livery worn by Delta’s Boeing 757-200s.

Delta Air Lines (current livery): AG Slide Show

Delta Air Lines (historic and all other liveries): AG Slide Show

Delta’s Route Map in 1966 (it was barely an international airline):

Delta 1966 Route Map

Delta’s current fleet line-up and number of aircraft in service (Delta Air Lines):

Delta Fleet Part 1

Delta Fleet Part 2

Allegiant now offers “giant seats” on its Boeing 757s

Allegiant Air (Las Vegas) has announced the addition of several larger, more comfortable seats, known as “Giant Seats,” to each of its Boeing 757 aircraft. Giving Allegiant travelers a new option when customizing their vacation experience, the company will offer these Giant Seats on flights between Hawaii and several western U.S. cities.

Allegiant 757-200 Giant Seat (Allegiant)(LR)

Copyright Photo: Allegiant Air.

Passengers who purchase a Giant Seat when making their reservations will take advantage of a more spacious, wider seat, comfortable headrests and more leg room.

“By adding these new Giant Seats, Allegiant passengers will enjoy the feeling and comfort of a premium seat, while flying to their destination at an affordable cost,” said Jude Bricker, Allegiant Travel Company, Senior Vice President of Planning. “We think the Giant Seats will be a welcome option for travelers, especially on our long-haul flights to Hawaii.”

Located in the first row and the mid-cabin emergency exit row of the aircraft, each of the six Giant Seats will be made available for a seat assignment fee on all flights to and from Hawaii and select flights to Las Vegas.

Allegiant installed the first of these new seats as part of compliance with changes to FAA crew rest rules, which require minimum seat requirements for augmented crews resting in the passenger cabin. A pair of the new seats was installed to comply with these rules, but the company also saw an opportunity to offer these more comfortable seats to passengers in other parts of the cabin and on flights that do not require augmented crew rest.

The new Giant Seats are part of an overall reconfiguration of the Allegiant 757 cabins, which includes creating a new seating option called “Legroom +.” Increasing the amount of leg room by up to six inches, Legroom + seats provide passengers with up to 34 inches between seat rows.

The installation of the new Giant Seats has been completed on all six of the carrier’s 757 aircraft. The new seat configuration will decrease the total number of seats in Allegiant’s Boeing 757s from 223 to 215.

Top Copyright Photo: Eddie Maloney/AirlinersGallery.com. Boeing 757-204 N904NV (msn 26967) touches down in Las Vegas.

Allegiant Air: AG Slide Show

National Airlines becomes a FAA-designated “Flag/Domestic Air Carrier”

National Airlines (5th) (formerly Murray Air) (Orlando) is celebrating the accomplishment of becoming the latest FAA designated Flag/Domestic Air Carrier. The airline issued this statement:

National Airlines is proud to announce that on February 28, 2014, the FAA approved National to become the United States’ newest Flag/Domestic air carrier.  National Airlines has a long history of supporting governments and militaries around the world — by, among other things, flying ad hoc cargo shipments in and out of crisis areas and also operating charter passenger operations for sports teams in the United States, visitors to/from Cuba, and contractors traveling between the United Arab Emirates and Afghanistan.  US Flag/Domestic authority will allow National Airlines to expand its services to include conducting scheduled passenger flights throughout the United States and across the globe.  It also provides an opportunity for National Airlines to continue its support of the US government travelers under the Fly America Act, whereby US government funded travelers fly on US Flag Carriers whenever available.

National Airlines maintains the highest standards of safety, security, and compliance.  “This is nowhere more important than in the Middle East, which has been a significant market for National Airlines,” said Glen Joerger, National Airlines’ President.  “This operating authority will further strengthen our position as an emerging passenger carrier of choice for discerning customers seeking US Flag service in the region,” he added. “This tremendous addition to National’s operating certificate reinforces our corporate commitment to serve every facet of transportation and logistics for our key clientele around the globe,” continued Joerger.

Copyright Photo: Paul Denton/AirlinersGallery.com. Boeing 757-28A N176CA (msn 24543) prepares to land at Dubai.

National Airlines (5th): AG Slide Show

Icelandair has a better than expected year in 2013, reporting a pretax profit of $71 million

Icelandair Group (Icelandair) (Keflavik) reported its financial results for 2013 (all dollar figures in US dollars):

  • Profit before taxes amounted to $71.0 million, up by $13.6 million or 24% between years
  • Income rose between years by 13.8%
  • EBITDA in the fourth quarter amounted $6.8 million, up by $0.9 million between years
  • The equity ratio at year-end 2013 was 42%, as compared to 39% at year-end 2012
  • Net interest-bearing debts were reduced by $95.6 million over the year and were negative at year-end in the amount of $77.5 million
  • The Board of Directors has proposed a dividend payment of ISK 2,150 million to shareholders in 2014, which corresponds ISK 0.43 per share.

Björgólfur Jóhannsson, President and CEO

“The Company’s performance in 2013 is good and considerably better than our budget projected in the beginning of the year.  Profit before taxes amounted to $71.0 million, up by $13.6 million between years. Like recent years, last year was characterised by profitable organic growth, which is in line with our strategy. Capacity in our route network was increased by 16% from last year, and the number of passengers increased by 12%. The Company’s largest market in international flight services is the market between Europe and North-America, which has been the principal driving force of our growth in recent years. The tourist market to Iceland has also shown significant growth, and the demand for domestic tourist services has increased rapidly. Concurrently with this expansion, companies within Icelandair Group have found opportunities for profitable growth.

The rapid growth of recent years has tested the Company’s infrastructure, which is now stronger than ever before. The main reasons for the good performance of the year include favourable external conditions, increase in tourism in Iceland and last but not the least our strong team of employees which are a very important factor in what we have achieved. It is always satisfying when things are going well, but there is no room for complacency. There are various challenges ahead that we need to address.  The principal challenge is the increasing competition, and in addition our contracts with some of our classes of employees have expired, which creates some uncertainty. Nevertheless, the Company’s business model has proven sound, our finances are solid and our cash position is strong. Icelandair Group is therefore well positioned to take on the future. The Company’s budget for 2014 projects EBITDA at $145-150 million.”

Trip Report on Icelandair by the Sydney Morning Herald on a London-Halifax trip: CLICK HERE

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 757-208 TF-FIJ (msn 25085) lands in Stockholm (Arlanda).

Icelandair: AG Slide Show

Delta adds even more feeder routes to Seattle/Tacoma

Delta Air Lines (Atlanta) will add new service from Seattle-Tacoma International Airport, including nonstop service to Phoenix Sky Harbor International Airport and seasonal nonstop service to Palm Springs International Airport. Delta will also add new and expanded service from Seattle/Tacoma to seasonal destinations as it continues building its domestic network.

Delta’s new Seattle/Tacoma service beginning on December 20, 2014 includes:

  • Five daily flights to Phoenix
  • One daily seasonal flight to Palm Springs, California
  • Saturday seasonal service to Tucson, Arizona
  • Saturday seasonal service to Jackson Hole, Wyoming
  • One additional nonstop flight to Honolulu for a total of two daily flights

Expanded seasonal service beginning in September includes:

  • One new daily nonstop flight to Anchorage, Alaska for a total of two daily flights in September and three daily flights during the summer

Delta’s new service to Phoenix, Palm Springs and Tucson will be operated by Delta Connection carrier SkyWest Airlines (St. George, Utah) using two-class, 76-seat aircraft, while Jackson Hole service will be operated with two-class, 65-seat aircraft. The expanded Honolulu and Anchorage service will be operated by Delta using Boeing 757 (above) and Boeing 737 aircraft, respectively.

By this summer, Delta will offer more than 2,500 daily international seats as part of its 79 peak-day departures to 25 destinations.

In addition to the expanded service, Delta will also adjust current arrival and departure times in Seattle/Tacoma to offer easier connections for customers traveling through the hub.

Delta recently announced expanded Seattle/Tacoma service from Anchorage; Fairbanks, Alaska; Juneau, Alaska; Las Vegas; Los Angeles; Portland, Oregon; San Diego; San Francisco; San Jose, California; and Vancouver to support its growing international gateway that currently operates nonstop flights to Amsterdam, Beijing, Paris-Charles de Gaulle, Shanghai-Pudong and Tokyo. The airline will also begin operating new nonstop international service this year to London-Heathrow beginning in March as well as Hong Kong and Seoul in June, pending government approval.

Every long-haul international Delta flight from Seattle/Tacoma now features full flat-bed seats in BusinessElite, Economy Comfort seating and entertainment on demand in every seat throughout the aircraft.

Delta currently operates 34 peak-day departures to 15 destinations from Seattle/Tacoma, and every flight offers BusinessElite/First Class and Economy Comfort seating as well as domestic Wi-Fi service. The airline has also invested $14 million in its facilities at Sea-Tac, including its recently completed lobby renovations, new Delta Sky Club, Sky Priority services, new gate area power recharging stations and expanded ticket counters.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 757-232 N6716C (msn 30838) pictured at SeaTac is named for Rev. Dr. Joseph E. Lowery, Dean of the Civil Rights Movement.

Delta Air Lines (current): AG Slide Show

 

UPS posts a net profit of $1.2 billion for 2013

UPS (United Parcel Service) (UPS Airlines) (Atlanta) posted net earnings of $1.2 billion for 2013. The company issued this full financial statement for the fourth quarter and 2013:

UPS released details regarding fourth quarter 2013 results. Diluted earnings per share totaled $1.25, a $0.07 decline from 2012 fourth quarter adjusted results. Average daily package volume increased 6.0%, as total deliveries in December surged 20%. Significantly higher than predicted volume and inclement weather contributed to excess operating costs in the U.S., negatively affecting results.

During the fourth quarter 2012, UPS reported a diluted earnings per share loss of $1.83, due to an after-tax, non-cash charge of $3.0 billion to account for a mark-to-market pension adjustment.

“As the retail market shifts to a direct-to-consumer model, more and more companies are leveraging UPS solutions,” said Scott Davis, UPS chairman and CEO. “As a result, we experienced an unprecedented increase in volume, exceeding even our most optimistic plans.

“The increased volume put a strain on our network, causing delays. In response, UPS deployed additional people and equipment, placing a greater emphasis on service than cost,” Davis explained. “UPS will make the necessary investments and operational improvements to ensure we meet the needs of the marketplace.”

The company expects full-year diluted earnings per share to be within a range of $5.05 to $5.30, an increase of 11%-to-16% over 2013 adjusted results.

UPS delivered 20 million packages per day during the fourth quarter. Total shipments in 2013 increased to 4.3 billion, a 3.9% improvement over 2012.

During the holiday period, global daily deliveries exceeded expectations by surpassing 29 million packages on five days, with peak volume exceeding 31 million on December 23. Also during this period, UPS experienced 10 days with delivery volume that exceeded the company’s previous high.

Cash Flow

For the year ended Dec. 31, UPS generated $5.3 billion in free cash flow, producing a net income-to-cash conversion ratio of more than 120%. The company paid dividends of $2.3 billion, an increase of nearly 9% per share over the prior year, and repurchased more than 43 million shares for approximately $3.8 billion.

U.S. Domestic Package

U.S. Domestic fourth quarter revenue improved 4.2% to $9.3 billion. Daily package volume increased 5.6% with Deferred and Ground leading the way, up 8.0% and 5.8% respectively.

Total revenue per package declined 1.3%, as lower fuel surcharges, changes in product and customer mix, as well as higher service refunds, contributed to the drop.  Shippers continue to utilize the UPS portfolio, choosing lower cost over faster delivery, as evidenced by more than 30% growth in UPS SurePost.

Operating profit totaled $1.2 billion as additional costs associated with a greater-than-expected surge in volume and weather led to a $178 million decline from the prior-year adjusted results. Increased compensation and benefit costs reflected the deployment of additional resources in an attempt to meet service commitments.  During the quarter, UPS exceeded seasonal hiring targets by more than 30,000, deploying a total of 85,000 temporary employees. In addition, the company experienced significantly higher purchased transportation expenses.

On a reported basis, the operating loss for the fourth quarter of 2012 totaled $1.8 billion as a result of the mark-to-market pension charge.

International Package

International revenue increased 5.3% to $3.4 billion on 8.8% growth in daily package volume. UPS Export products rose 9.5% per day, driven primarily by 13% growth in Europe and significant growth in the Asia-to-Europe trade lane. Non-U.S. domestic products were up 8.2% with strong growth in Poland, Italy, and Canada. During December, the segment achieved a peak volume day above four million pieces and exceeded last year’s high on 11 days.

Export yield declined 3.4% on a currency neutral basis, as a result of lower fuel surcharges and customer preference for non-premium products. Double-digit gains in Pan-European shipments also lowered revenue per piece.

Operating profit improved 7.6% to $537 million. Operating margin expanded 30 basis points to 15.9%, compared to last year’s adjusted results.

On a reported basis, the operating loss for the fourth quarter of 2012 totaled $442 million as a result of the mark-to-market pension charge.

Supply Chain & Freight

Revenue in the segment fell 5.8% to $2.3 billion, due to declines in the Freight Forwarding unit. Operating profit was flat compared to 2012 adjusted results, as improvements in Distribution offset declines in Forwarding and UPS Freight.

On a reported basis, the operating loss for the fourth quarter of 2012 was $541 million as a result of the mark-to-market pension charge.

The Forwarding unit experienced a revenue decline resulting from decreased tonnage and revenue per kilo, in International Air Freight. The Ocean Freight business reported growth in shipments and operating margin expansion.

Distribution revenue increased over the prior year period. The retail and healthcare sectors contributed to the improved results. Global footprint expanded during the year to 284 facilities, with more than 22 million square feet of space.

UPS Freight LTL revenue increased 2.3% over the prior year driven by LTL tonnage and pricing improvements.

Outlook

The company announced plans to repurchase $2.7 billion of UPS shares during 2014. Capital expenditures are anticipated to be approximately $2.5 billion. This includes accelerated deployments in operational technologies and over $500 million of increased investments in capacity expansion and hub modernization.

“While the year ended on a challenging note, we are confident in our ability to adapt and we expect much better results in 2014,” said Kurt Kuehn, UPS chief financial officer. “UPS expects balanced profitability growth across all segments in a slightly better economic environment, resulting in full-year guidance of diluted earnings per share of $5.05 to $5.30, an 11%-to-16% increase over our 2013 adjusted results.”

Copyright Photo: Keith Burton/AirlinersGallery.com. Boeing 757-24A (PF) N416UP (msn 23903) prepares to arrive in Las Vegas.

UPS Airlines: AG Slide Show

Bloomberg visits UPS’ sorting hub at UPS Worldport, Louisville, Kentucky:

UPS-We Love Logistics logo

 

Allegiant Air’s pilots to meet with investors and analysts about safety concerns

Allegiant Air‘s (Las Vegas) pilots have issued this statement:

Allegiant Air’s pilots, represented by the Allegiant Air Pilots Executive Council, an employee group of Allegiant Travel Company (Las Vegas) and pilots represented by Teamsters Local Union 1224 in Wilmington, Ohio, announced plans to begin formal dialogues with Allegiant stakeholders and other influential voices in the financial community, including institutional shareholders, equity analysts, corporate lenders and insurers, in order to address operating and safety concerns that exist at the airline.

INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOGO

“Allegiant management has turned a deaf ear to serious operational concerns raised by the pilots,” said Capt. David Bourne, Director of Airline Division at the International Brotherhood of Teamsters. “We believe Allegiant’s financial backers have a right to know what is going on and be given a chance to weigh in on vital changes needed for Allegiant’s long-term success before it’s too late.”

“Allegiant’s low-cost model works if it can actually support the growth of the business,” Bourne said, “However, management’s lack of operational know-how and flat-out resistance to put badly needed investments into infrastructure is taking a significant toll on flight operations, which could ultimately jeopardize flight safety. It’s obvious to us that the major service disruptions over the last several months, ranging from multiple fleet shutdowns, chronic staffing and equipment shortages, significant ramp-up in 3rd party contracting for scheduled flights and sub-servicing and the shutdown of the company’s training department, all flow from the short-sighted decisions being made at the top.”

“It is very unusual for a company’s training department to be shut down,” said Dan Wells, President of Teamsters Local 1224. “Allegiant has yet to even acknowledge the training shutdown, much less show its pilots a plan for corrective action or indicate if those changes will adequately satisfy Federal Aviation Administration concerns. Many Allegiant pilots have been delayed in training for months, which we believe is driving a major increase in outsourcing due to the shortage of company pilots to fly scheduled flights and re-route equipment back to hubs and maintenance centers.”

“Management has ignored repeated requests for clarity on the training program by both the union and Allegiant’s own pilots,” Bourne said. “We’ve filed a Freedom of Information Act submission with the FAA on the matter, but the agency’s only reply was that there is an ongoing investigation at the company. In the meantime, Allegiant pilots continue to bend over backwards to work with the company to address the very significant issues that are interfering with the ability of Allegiant flight crews to do their jobs properly and service customers effectively. We are hopeful that conversations with investors and other Allegiant stakeholders will lead to a breakthrough on some of the key obstacles affecting the future of the airline.”

Copyright Photo: Jay Selman/AirlinersGallery.com. Allegiant Air’s Boeing 757-204 WL N904NV (msn 26967) arrives at the Las Vegas base.

Allegiant Air: AG Slide Show

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