Tag Archives: A330-200

Hawaiian Holdings produces record GAAP net income of $25.9 million for the first quarter

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu),  reported its financial results for the first quarter of 2015:

GAAP net income of $25.9 million or $0.40 per diluted share.

Adjusted net income, reflecting economic fuel expense and excluding loss on extinguishment of debt, of $24.7 million or $0.38 per diluted share, an increase of $25.6 million or $0.40 cents per diluted share year-over-year.

Adjusted pre-tax margin of 7.4% compared to (0.2)% in the prior year period.

Unrestricted cash, cash equivalents and short-term investments of $488 million.

Lowered leverage ratio to 3.6x.

The board of directors approved a share repurchase program authorizing the Company to buy back up to $100 million of its common stock.

“Producing these record results for the seasonally weak first quarter demonstrates the growing strength of our business,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “Low fuel prices and strong demand across our network combined to more than offset the impact of a strengthening U.S. dollar, declining fuel surcharges in some markets and an increase in industry capacity between North America and Hawai’i. Reflecting this performance we have announced a $100 million share repurchase program today. As always, our employees are at the forefront of our successes. Their performance makes our financial success possible and they have my undying thanks.”

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Liquidity and Capital Resources

As of March 31, 2015 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $488 million.

Outstanding debt and capital lease obligations of approximately $962 million consisting of the following:

$693 million outstanding under secured loan agreements to finance a portion of the purchase price for 11 Airbus A330-200 aircraft.

$132 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.

$100 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.

$29 million outstanding under floating rate notes to finance the acquisition of two Boeing 767-300 ER aircraft.

$8 million of outstanding Convertible Senior Notes.

In the first quarter, the Company repurchased $63 million (principal balance) of convertible notes outstanding. Repurchases to date have totaled $78 million (principal balance) or 91%, thereby eliminating the need to issue 10 million shares when the notes may have otherwise converted to common stock.

First Quarter 2015 Highlights:

Product and loyalty

Introduced the first of its 18 refurbished Boeing 717 aircraft with a comprehensive interior retrofit and a standard consistent layout of 128 seats in March 2015. The refurbishment will provide more seats for the peak demand period and eliminate operational complexity arising from different seat counts. To date, seven aircraft have completed the refurbishment program with all remaining Boeing 717 aircraft in the Company’s fleet expected to be retrofitted by the end of the year.

Fleet and financing

Added one new A330-200 aircraft under lease financing.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A330-243 N391HA (msn 1309) taxies at Seattle-Tacoma International Airport.

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TAP Portugal is facing a 10-day strike by its pilots

TAP Portugal’s (Lisbon) pilots union, SPAC, has announced a 10-day strike starting on May 1. The pilots, as previously reported, are unhappy with the ongoing privatization process.

TAP Portugal issued this statement:

The Pilots’ Union announced a strike from May 1st to May 10th, which, to be held, will strongly affect TAP operation.

Therefore, TAP will now allow passengers, with confirmed bookings on flights scheduled for the announced dates, to change to TAP flights outside the strike period, within the same cabin.

The establishment of minimum services – flights whose implementation has to be ensured by the Union – will be expected in the forthcoming days.

Any updated information concerning this situation will be published as soon as possible in all of our communication channels.

TAP will make all efforts in order to minimize the impact of the strike on our passengers.

TAP regrets all the inconveniences caused by this decision of the Pilots’ Union and will do everything in its power to ensure that this strike does not take place.

Copyright Photo: Chris Sands/AirlinersGallery.com. TAP Portugal’s Airbus A330-203 CS-TOR (msn 486) arrives at Miami International Airport.

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BBC: SriLankan Airlines is accused of a “culture of corruption”

Srilankan Airlines‘ (Colombo) management is coming under a criminal investigation by the Sri Lankan government according to the BBC. The current government is alleging “shocking” corruption under a previous government. The airline is 95% government owned.

Read the full report: CLICK HERE

Copyright Photo: SPA/AirlinersGallery.com. Airbus A330-243 4R-ALH (msn 627) has special “Commonwealth Heads of Government Meeting” markings at London (Heathrow).

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Yemenia suspends all operations until further notice

Yemenia-Yemen Airways (Sana’a) has suspended all operations until further notice due to the “current crisis and for safety reasons”.

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Fighting is on-going in the country and was recently expanded with a 10-nation coalition led by Saudi Arabia and the Royal Saudi Air Force with airstrikes against Iranian-backed Houthi rebels near Sana’a International Airport.

Copyright Photo: Pascal Simon/AirlinersGallery.com. Airbus A330-243 7O-ADT (msn 632) of Yemenia rotates at Frankfurt.

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KLM will now launch new service to Edmonton on May 19

KLM Royal Dutch Airlines (Amsterdam) was due to commence a new route to Edmonton on May 5, but the new route was postponed. Now the company will launch the new route with Airbus A330-200 equipment under flight numbers KL 675 and KL 676 on May 19. Flights to Edmonton will be operated on Tuesdays, Thursdays and Sundays and, from June 26, on Fridays.

The flight from Amsterdam departs at 14:45 hours and lands in Edmonton at 15:45 hours local time. The return flight departs at 18:10 hours from Edmonton and lands the next day at 10:45 hours in Amsterdam.

In other news, KLM has relaunched scheduled service to Bogota and Cali, Colombia. KLM now serves eleven destinations in Latin America and expanded its network to a total of 67 intercontinental destinations. KLM served Bogota from October 1992 through March 1995.

Finally KLM and Air France will adopt the EASA “two persons in the cockpit” rule in the wake of the tragic Germanwings accident. KLM issued this short statement:

The Agency recommends the operators to issue a safety and security risks assessment in order to require at least two persons in the flight crew compartment or guarantee an equivalent safety level. As previously announced, this recommendation followed a consultation of operators including Air France and KLM Royal Dutch Airlines. Both KLM Royal Dutch Airlines and Air France will implement the recommendations of EASA as soon as possible.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A330-203 PH-AOE (msn 770) with the special “95 Years” logo taxies at the Amsterdam hub.

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DOT announces a tentative decision to allow Delta Air Lines to keep the Seattle-Tokyo Haneda route (with stipulations), Hawaiian Airlines strongly reacts

The U.S. Department of Transportation (DOT) (Washington) has issued this tentative decision to allow Delta Air Lines (Atlanta) to retain the Seattle/Tacoma – Tokyo Haneda route provided the carrier operates daily, year-round service on the route. Here is the full statement:

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The U.S. Department of Transportation (DOT) on March 27 proposed to permit Delta Air Lines to retain its authority to provide daily service between Seattle, Washington and Tokyo’s downtown Haneda Airport, but subject to additional conditions designed to ensure that Delta maintains a daily service in the Seattle market year-round.

DOT initiated this proceeding in late 2014 after it learned that Delta planned extensive winter season cutbacks for its Seattle-Haneda service. Instead of the daily service it had proposed in winning the route in a 2013 selection proceeding conducted by DOT, Delta would operate the service for approximately only one week every 90 days between October 2014 and late March 2015. American Airlines and Hawaiian Airlines, citing Delta’s failure to serve the route as it had proposed, each proposed to replace Delta and committed to operating daily flights from Tokyo’s Haneda Airport to Los Angeles and Kona, Hawaii, respectively.

In consideration of Delta’s recommitment to year-round daily service, DOT tentatively determined that it was in the public interest to permit Delta to retain the Seattle-Haneda route. However, any failure by Delta (absent DOT authorization) to operate any Seattle-Haneda flight, year-round, in either direction, would constitute a violation of its authority. Additionally, any failure by Delta (absent DOT authorization) to perform Seattle-Haneda service on two days of any seven-day period would mean the immediate loss of Delta’s authority.

DOT selected American Airlines’ proposal to provide Los Angeles-Haneda service as a backup should Delta fail to meet its requirements in serving the Seattle market.

Objections to the tentative decision are due by April 6, 2015. If objections are filed, answers to objections will be due April 13, 2015.

Delta issued this statement:

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“Delta thanks the U.S. Department of Transportation for its tentative decision to allow the airline to continue its service between Seattle and Haneda Airport in Tokyo. After an extensive review, the DOT concluded that Delta’s Seattle-Haneda service provides the best public use of the available slot pair between the U.S. and Haneda Airport. Earlier this month, Delta resumed its nonstop service between Seattle and Haneda after a temporary seasonal suspension. Delta will operate year-round, nonstop flights between Seattle and Haneda as we continue to grow Delta’s international gateway at Seattle-Tacoma International Airport.”

Meanwhile Mark Dunkerley, President and CEO of Hawaiian Airlines (Honolulu), issued this strong response to the tentative DOT decision for Delta to keep the Tokyo Haneda slots:

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The tentative decision issued by the U.S. Department of Transportation on March 27 to allow Delta Air Lines to retain the valuable right to fly from Tokyo’s Haneda International Airport for largely unused service to Seattle is tremendously disappointing. We are further disappointed that the U.S. DOT has determined that should Delta’s planned service continue to fail, the Haneda slots will be assigned to American Airlines.

Hawaiian is the only airline to have operated Haneda service continuously and successfully since the slot rights were granted. Our proposal provided more seats and would have resulted in more travelers flying between Japan and the United States than either Delta’s or American’s proposal. Kona is the largest unserved market in this proceeding, and Hawaiian’s proposed route would have generated more economic benefit than that offered by either Delta or American. None of these facts are in dispute by the DOT.

Sadly, by dismissing Hawaiian’s proposed Kona route as just simply being additive to the routes already serving Hawaii, the DOT has once more failed to appreciate the geography of the 50th state. Kona and Honolulu are separate markets, separate communities and indeed are located on separate islands. The tentative ruling also reveals a long-held institutional bias among decision makers favoring the interests of U.S. business travelers over those of U.S. travel-related businesses and travelers in general.

Hawaiian will be considering its next steps in this proceeding in the coming days.

Copyright Photo: TMK Photography/AirlinersGallery.com. Delta’s Airbus A330-223 N860NW (msn 778) is pictured in action at Seattle-Tacoma International Airport (SEA).

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Alitalia to start a new route connecting Venice with Abu Dhabi

Alitalia (3rd) (Rome) has issued this announcement on new Venice-Abu Dhabi service in connection with Etihad Airways (Abu Dhabi) :

Venice – Abu Dhabi is set to be the first new route opened by the new Alitalia since the January 1, 2015 launch of operations, after Etihad Airways acquired a 49% stake in the company.

The daily connection was presented to business leaders, media and other institutions in Venice today by Alitalia’s Chairman Luca di Montezemolo and CEO Silvano Cassano, together with Enrico Marchi, Chairman of the SAVE Group – Venice Airport, and Peter Baumgartner, Chief Commercial Officer of Etihad Airways, the strategic equity and codeshare partner of Alitalia, which has added its ‘EY’ code to the service.

Alitalia will reinforce its presence in Italy’s North Eastern airports with the new route, reaching a total of 89 weekly connections from Venice (64) and Verona (25). From Venice alone, Alitalia will offer approximately 600,000 seats on direct flights during the summer season for air transportation (March-October), including those on partner airlines, to Rome, Berlin, Dusseldorf, Paris, Amsterdam, Moscow and Tirana.

The new connections with Abu Dhabi will strengthen Alitalia’s intercontinental offering, allowing passengers departing from North Eastern Italy to reach not just the United Arab Emirates, but continue, thanks to Etihad Airways’ extensive global connections, to 30 destinations in the Middle East (Bahrain, Muscat, Kuwait, Dubai and Al Ain), Africa (Johannesburg, Nairobi and Khartoum), the Indian Subcontinent (Mumbai, Kochi, Delhi, Bangalore, Karachi, Lahore, Dacca, Malè, Seychelles and Colombo), Asia (Beijing, Seoul, Phuket, Chengdu, Bangkok, Ho Chi Minh City, Kuala Lumpur, Singapore and Jakarta) and Australia (Melbourne, Sydney and Perth).

The Venice-Abu Dhabi flight will take off on March 29, 2015. Simultaneously, Alitalia will also launch a new flight from Milan Malpensa Airport to the capital of the United Arab Emirates, tripling the number of its flights for Abu Dhabi, which will reach a total of 42 weekly flights.

From Venice’s Marco Polo airport, the first Alitalia flight for Abu Dhabi will take off this Sunday, March 29, at 9:55 pm, landing in Abu Dhabi at 5:55 am (local time) on the following day.

Flights from Abu Dhabi to Venice will depart at 9:05 am (local time) to arrive at the Marco Polo Airport at 1:35 pm. The service will be operated using a 250-seat Airbus A330 aircraft, arranged in three service classes: Magnifica (business class), Classica Plus (premium economy) and Classica (economy).

Copyright Photo: Fred Freketic/AirlinersGallery.com. Airbus A330-202 EI-EJM (msn 1308) in the promotional Expo Milano 2015 special livery approaches the runway at JFK International Airport in New York.

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