Tag Archives: A380

Malaysia Airlines is placed into receivership, operations continue

Malaysia Airlines (Malaysian Airline System Berhad-MAS) (Kuala Lumpur) today (May 25) was placed into receivership as the company transitions to a new company (Malaysia Airlines Berhad-MAB). The transfer of assets will occur on September 1, 2015. The restructuring could result in the loss of a significant number of jobs as the national carrier downsizes under its 12-point MAS Recovery Plan.

The airline issued two statements:

Malaysia logo-1

The first statement:

Khazanah Nasional Berhad, the sole shareholder of Malaysian Airline System Berhad (MAS), today (May 25) announced the appointment of Dato’ Mohammad Faiz Azmi as Administrator for MAS, effective May 25, 2015.

The appointment of the Administrator will facilitate the transfer of selected assets and liabilities from MAS to the new company Malaysia Airlines Berhad (MAB), effectively by September 1, 2015. MAS continues to operate throughout the period up to and including August 31, 2015, after which MAB will operate the business of the airline from September 1, 2015 onwards.
The appointment is a voluntary undertaking by Khazanah and is made pursuant to the Malaysian Airline System Berhad (Administration) Act 2015 (MAS Act), which was passed by both houses of the Malaysian Parliament last year. The MAS Act provides for an effective, efficient and seamless means to transition the business, property, rights, liabilities and affairs of MAS to MAB.
The transition from MAS to MAB is a key component of the 12-point MAS Recovery Plan, which was announced on August 29, 2014, to restructure the national carrier and set it on a path towards sustainable profitability. The MRP also includes conditional investment funding by Khazanah of up to RM6 billion, disbursed on a staggered basis and subject to the fulfillment of strict conditions.

The second statement:

Christoph Mueller, Chief Executive Officer of Malaysian Airline System Berhad (MAS) and CEO-designate of the new airline, Malaysia Airlines Berhad (MAB), assures customers that MAS operations continue as normal with the appointment of the Administrator.

Mueller states, “I assure you our operations are very much business as usual. All MAS flights, schedules, and reservations continue to operate as normal. We remain committed to serving you with our world-class Malaysian Hospitality, and look forward to welcoming you on board Malaysia Airlines.”

“This appointment does not affect our daily operations or existing reservations. You can continue to make reservations in full confidence that our flights and schedules are operating as normal, that tickets sold will be honored, and that our Enrich frequent flyer program continues with Miles and status preserved”, Mueller added.

Today, Khazanah Nasional Berhad (Khazanah) announced the voluntary appointment of an Administrator for MAS. This appointment reflects the continuing and considerable effort to September 1, 2015, when MAB becomes operational with a new business model and a new management team, led by Mueller.

The appointment by Khazanah, Malaysia’s sovereign fund and the sole shareholder of MAS, is backed by the Malaysian Airline System Berhad (Administration) Act 2015 (MAS Act) enacted by the Government of Malaysia. Under the MAS Act, the Administrator plays a critical role to facilitating the transfer of selected assets and liabilities to MAB, which will replace MAS as Malaysia’s new national carrier.

Copyright Photo below: SPA/AirlinersGallery.com. The Airbus A380 are likely to be sold with the restructuring. Malaysia Airlines Airbus A380-841 9M-MNF (msn 114) (100th A380 logo) climbs away from London (Heathrow).

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Emirates Group announces its 27th consecutive year of profit, $1.5 billion net profit, up 34%, will launch weekly cargo service to Columbus, Ohio

The Emirates Group (Emirates Airline and Emirates SkyCargo) (Dubai) has announced its 27th consecutive year of profit. The profit for the fiscal year was $1.5 billion, up 34 percent from the previous year. The airline issued this statement:

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The Emirates Group announced its 27th consecutive year of profit and steady growth across the company, ending the year in a strong position despite the many global and operational challenges during this period. The financial year ending March 31, 2015 also marked the achievement of new capacity milestones at both Emirates and dnata, as the Group continued to expand its global footprint, and strengthen its business through strategic investments.

Released in its 2014-15 Annual Report the Emirates Group posted an AED 5.5 billion (US$1.5 billion) profit, up 34% from last year. The Group’s revenue reached AED 96.5 billion (US$26.3 billion), an increase of 10% over last year’s results, and the Group’s cash balance remained strong, growing to AED 20.0 billion (US$5.5 billion).

“2014-15 was a turbulent year for aviation. The fall in oil prices provided cost relief in the second half of our financial year, however it did not offset the hit to our profitability caused by significant currency fluctuations, nor the hit to our revenue from operational adjustments in addressing the Ebola outbreak, armed conflicts in several regions, and the 80-day runway upgrading works at Dubai International airport (DXB). Achieving our 27th consecutive year of profit and one of our best performances to date, is testimony to the strength of our brands and business fundamentals, as well as the dedication and talent of our workforce,” said His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

The strong rise of the US dollar against currencies in many of Emirates’ and dnata’s key markets had an AED 1.5 billion (US$412 million) impact to the Group’s bottom line, while the 80-day disruption at DXB had an estimated impact of AED 1.7 billion (US$467 million) on Group revenue.

“Every year brings a new set of challenges. In addressing these, we are always guided by the best interest of our people, our customers, and our long-term goals. As a Group, we keep a close eye on our top and bottom lines, but we never take our foot off the gas pedal when it comes to investing to enhance our business performance, and looking after our people. In 2014-15, the Group collectively invested over AED 20.2 billion (US$5.5 billion) in new aircraft and equipment, modern facilities, the latest technologies, and staff initiatives. This was the second highest amount ever in one financial year after last year’s record investment.”

The Group’s employee base across its more than 80 subsidiaries and companies increased by 11% to over 84,000-strong representing over 160 different nationalities.

“Looking ahead, the ongoing uncertainty for many currencies and economic markets around the world will continue to pose a challenge, as will the looming threat of protectionism in some countries. However, we move into the new financial year with confidence, and a strong foundation for continued profitability with our strong balance sheet, solid track record, diverse global portfolio, and international talent pool,” said Sheikh Ahmed. “We will continue on our journey of steady and rational growth, and work even harder to meet and exceed our customers’ expectations.”

In line with the overall profit increase, the Group declared a dividend of AED 2.6 billion (US$ 700 million) to the Investment Corporation of Dubai.

Emirates performance

In 2014-15, Emirates increased capacity by 4.0 billion Available Ton Kilometers (ATKMs). For the first time in the airline’s history, Emirates’ total passenger and cargo capacity crossed the 50 billion mark, to 50.8 billion ATKMs at the end of the financial year, cementing its position as the world’s largest international airline.

Emirates received 24 new aircraft during the year, including 12 A380s, ten Boeing 777-300 ERs and two Boeing 777Fs, bringing its total fleet count to 231. At the same time 10 aircraft were phased out, taking the average fleet age to 75 months or approximately half the industry average of 140 months. The airline remains the world’s largest operator of the Boeing 777 and A380 – both aircraft being amongst the most modern and efficient wide-bodied jets in the sky today.

With the delivery of new aircraft, Emirates launched five new passenger destinations: Abuja, Brussels, Budapest, Chicago, Oslo and four new additional freighter-only destinations: Atlanta, Basel, Mexico City, and Ouagadougou. It also added services and capacity to 34 cities on its existing route network across Africa, Asia, Europe, the Middle East, and North America, offering customers even greater choice and connectivity.

The 80-day runway closure at DXB necessitated the grounding of 19 Emirates aircraft, reducing the airline’s capacity by 9%, and causing the reduction of services to 41 destinations over this period. The estimated impact on airline revenue was AED 1.6 billion (US$ 436 million). The Ebola outbreak in Africa prompted route suspensions and increased health and safety screenings at other ports; and geopolitics resulted in the suspension of services and re-routing of flight paths to avoid overflying conflict zones.

Despite these challenges, Emirates revenue reached a new record of AED 88.8 billion (US$24.2 billion). The average price of jet fuel dropped significantly during the second half of the financial year and has supported Emirates’ bottom line improvement. Emirates’ fuel bill decreased by 7% over last year to AED 28.7 billion (US$7.8 billion). Fuel is now 35% of operating costs, down by 4%pts compared to last year. However, fuel remained the biggest cost component for the airline. Total operating costs increased by 6%, compared to a revenue increase of 7% over the 2013-14 financial year.

The airline successfully managed increased competitive pressure across all markets to record a profit of AED 4.6 billion (US$1.2 billion), an increase of 40% over last year’s results, and a healthy profit margin of 5.1%, the strongest margin since 2010-11.

Carrying a record 49.3 million passengers, up 11% from last year, Emirates managed to achieve a Passenger Seat Factor of 79.6%, an improvement compared with last year’s results (79.4%) in spite of a 9% increase in seat capacity byAvailable Seat Kilometres (ASKMs). This highlights thestrong consumer desire to fly on Emirates’ state-of-the-art aircraft, and via efficient routings through its Dubai hub.

Under pressure from the weakening of all major currencies against the USD, passenger yield dropped to 29.7 fils (8.1 US cents) per Revenue Passenger Kilometre (RPKM).

Emirates also improved its premium seat factor despite lingering economic uncertainty and strong competition in many markets. Premium and overall seat factor for the airline’s flagshipA380aircraft outperformed the network, underscoring the popularity of Emirates’ premium and A380 product amongst passengers. At 31 March 2015, Emirates had 59 A380 aircraft in its fleet, serving one out of every four destinations on its passenger network.

To fund its fleet growth, Emirates raised a total of AED 18.7 billion (US$5.1 billion), using a variety of financing structures. Emirates achieved a major landmark when it closed the first ever Japanese Operating Lease on an A380. It also entered into a Japanese Operating Lease with a Call Option (JOLCO) with respect to one A380-800 aircraft to expand the investor base of the A380 into the Japanese market. During the year, Emirates also successfully closed sale and leaseback transactions for five B777-300ERs and one B777-200ER aircraft.

The financing highlight of the year was the successful issuance of a UK Export Finance (UKEF) guaranteed Sukuk bond of AED 3.4 billion (US$913 million) to fund the acquisition of four A380 aircraft to be delivered in 2015. This deal marked the world’s first Sukuk financing supported by UKEF and the largest ever capital markets offering in the aviation space with an Export Credit Agency guarantee.

These deals align with Emirates’ strategy to seek diverse financing sources, and underscore its sound financials and the strong investor confidence in the airline’s business model. Emirates closed the financial year with a healthy AED 13.3 billion (US$3.6 billion) cash flow from operating activities.

Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30% of overall revenues. Europe is the highest revenue contributing region with AED 25.2 billion (US$6.9 billion), up 7% from 2013-14. East Asia and Australasia follows closely with an increase of 3% and AED 24.6 billion (US$6.7 billion). The highest growth with 20% was recorded for the Americas to AED 11.0 billion (US$3.0 billion). Gulf and Middle East revenue increased 4% to AED 8.6 billion (US$2.3 billion).

Across the rest of the globe Emirates saw strong revenue increases from West Asia and Indian Ocean up 11% to AED 9.2 billion (US$ 2.5 billion) and Africa with AED 8.1 billion (US$2.2 billion) in revenue, up 5%.

In line with its customer-focused proposition, Emirates invested over AED 73 million (US$20 million) last year to equip its fleet with free Wi-Fi. By March 31, 2015, 107 of its Airbus A380 and Boeing 777 aircraft offered Wi-Fi services. The airline also opened new dedicated airport lounges in Glasgow and Los Angeles, taking to 37 the number of dedicated Emirates Lounges across the world. Emirates also opened a new 300-seat contact centre in Budapest to support its growth and supplement its language and response capability.

Looking forward to 2015-16, Emirates has to date announced two new routes including Denpasar and Orlando aside from a number of capacity upgrades to existing destinations.

The 2014-15 financial year has been a strong one for Emirates SkyCargo who reported a revenue of AED 12.3 billion (US$ 3.4 billion), a very remarkable 9% increase over last year. Contributing 15% of the airline’s total transport revenue Emirates SkyCargo continues to play an integral role in the company’s expanding operations.

Emirates SkyCargo’s tonnage strongly increased by 6% to reach 2.4 million tonnes in an airfreight market that remained challenging with fast-changing demand patterns. Emirates SkyCargo’s performance highlights its ability to grow revenues against the industry norm. This year, freight yield per Freight Tonne Kilometre (FTKM) decreased by 1%, and was also impacted by the weakening of major currencies.

On May 1, 2014, Emirates SkyCargo marked a major milestone with the move of its freighter operations to its new cargo terminal at Dubai World Central’s Al Maktoum International airport (DWC). Capable of handling 700,000 tons of cargo annually, the new terminal at DWC is equipped with state-of-the-art technology and has the potential for further expansion to handle 1 million tonnes annually, positioning the business for future growth.

At the end of the financial year, the Emirates SkyCargo freighter fleet had grown to 14 aircraft – 12 Boeing 777Fs, and 2 Boeing 747-400Fs.

Emirates’ hotels recorded revenue of AED 693 million (US$ 189 million), an impressive increase of 23% over last year. This positive development was supported by the opening of the second tower of the JW Marriott Marquis Hotel in Dubai, the world’s tallest hotel.

In other news, Emirates SkyCargo, the freight division of Emirates, has announced that Columbus, the State Capital of Ohio in the United States, will join its global freighter network with the launch of a weekly service to Rickenbacker International Airport from May 27, 2015.

The new freighter service to America’s 15th largest city will become Emirates SkyCargo’s 48th destination in its worldwide freighter network and sixth in the US. The announcement was made on the side lines of the 7th Air Cargo Europe Exhibition and Conference taking place in Munich, Germany, where Emirates SkyCargo is showcasing its products and services.
The flight will be operated by an Emirates SkyCargo Boeing 777 Freighter, which has the capacity to carry just over 100 tonnes of cargo, and with its main deck cargo door being one of the widest of any aircraft, enables it to uplift outsized cargo and carry larger consignments.

Top Copyright Photo: SPA/AirlinersGallery.com. Emirates added an even dozen new Airbus A380s during the year. A380-861 A6-EEX (msn 154) departs from Heathrow Airport in London.

Emirates aircraft slide show: AG Airline Slide Show

Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Emirates SkyCargo is coming to Columbus, Ohio starting on May 27. Boeing 777-F1H A6-EFL (msn 42230) taxies at Amsterdam.

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For Sale: Malaysia Airlines to sell its Airbus A380s, four Boeing 777-200 ERs and two 747-400Fs

Malaysia Airlines (Kuala Lumpur) is planning to downsize its fleet. The financially struggling carrier has put its six Airbus A380s, four Boeing 777-200 ERs and two Maskargo Boeing 747-400F freighters up for sale according to CNN.

The sale of the Airbus A380s will test the Super Jumbo market.

Read the full report: CLICK HERE

Copyright Photo: AirlinersGallery.com. Malaysia Airlines’ Airbus A380-841 9M-MNC (msn 084) taxies at London’s Heathrow Airport.

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New video from Airbus: Celebrating 10 years of the A380

A new video from Airbus:

Airbus’ 21st century flagship has “shared its love” with passenger and airlines alike in the 10 years since it performed its maiden flight in April 2005. The 21st century flagship highlights Airbus’ passion for aviation as a true game-changer for travellers, with its unrivalled space and comfort aloft, while generating significant revenue for operators. Thirteen operators now fly the double-deck A380 – with the jetliner taking off or landing somewhere in the world every four minutes, on average.

Emirates to bring the Airbus A380 to Copenhagen, double daily to Zurich

Emirates (Dubai) continues to add more Airbus A380 services. The fast-growing carrier has announced a second daily Airbus A380 service to Zurich.

Commencing on Thursday October 1, 2015, Emirates flights EK 85/86, currently operated by a Boeing 777-300 ER, will be upgraded to an A380. The first A380 was introduced on the route in January 2014.

Emirates flight EK 85 departs Dubai International Airport at 15.45 and arrives in Zurich at 20:20. The outbound flight EK 86 departs from Zurich at 22:15 and arrives in Dubai at 06:25 the following day.

Emirates also announced the launch of a daily Airbus A380 service to Copenhagen. As of December 1, 2015, the Danish capital will be the first in Scandinavia to boast a scheduled A380 service.

Emirates flight EK 151 will leave Dubai at 0820 and arrive in Copenhagen at 1220 the same day. The return flight EK 152 will depart Copenhagen at 1420 and arrive in Dubai at 2335 the same day.

Emirates is also adding a second daily A380 flight on the Dubai – London Gatwick route with the introduction of second daily A380 service on permanent basis.

In other news, Emirates will increase its capacity to the Indian Ocean Island of Seychelles, when it switches from the current Airbus A330-200 used on one of the two daily services to a larger Boeing 777-300 ER from  June 1, 2015.

The introduction of the Emirates Boeing 777-300 ER, which operates as flight EK 705 from Dubai and as EK 706 on the return flight, will increase overall capacity on the route by 1722 seats per week and will make the route an all-Boeing 777 operation.

On the cargo side, Emirates SkyCargo, the freight division of Emirates, will soon be adding the Indonesian Island of Bali to its Asia Pacific network, opening up a new trade lane between the island and the cargo carrier’s network of more than 140 destinations.

Bali will become Emirates SkyCargo’ s 2nd gateway in Indonesia and 24th Asia Pacific point in its global network.

With the launch of its daily service to Bali, Emirates SkyCargo will offer 294 tons of cargo capacity per week both ways in the belly hold of a Boeing 777-300 ER which will be used on the route. The new Bali service will bring to four the number of daily flights Emirates SkyCargo has to Indonesia – three of which are to the country’s capital Jakarta.

Copyright Photo: Andi Hiltl/AirlinersGallery.com. Airbus A380-861 A6-EDL (msn 046) lands in Zurich.

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Etihad Airways publicly states its labor policies and practices

Etihad Airways (Abu Dhabi) has issued this statement on its labor policies and practices as political pressure increases in Washington for a new policy concerning competition from the “Gulf Big Three”:

Etihad Airways is one of the world’s most popular new employers of the 21st century. We strive to attract the top talent in the industry and it’s working. Last year, we were inundated with requests from people for the opportunities Etihad Airways offers – with more than 260,000 who applied to join the airline from all over the world – 57 times more applications than we had total job openings which included 1,700 crew position and approximately 500 pilot openings. In 2014, Etihad Airways was named “Employer of the Year” at the Middle East HR Awards and was ranked as one of the “Global 100” most in-demand employers by LinkedIn. In a recent independent, externally-managed employee opinion survey, 93% of our people said they are proud to work at Etihad Airways and the overall employee engagement score of 76% was 18% better than that of the global average. These numbers and awards speak to our record as a desirable and responsible employer. We invite and welcome members of APFA to visit our operations and meet our employees so they can experience firsthand the Etihad Airways workplace and culture.

Our commitment to the welfare, safety, and well-being of the diverse group of men and women who have worked so hard to make Etihad Airways great is one of our airline’s top priorities. That commitment to our employees extends beyond our world class salaries and benefits. Our crew are entitled to the full scope of benefits in line with UAE laws, but we choose to go further. Etihad provides many benefits that exceed those requirements significantly, such as housing allowances, comprehensive medical insurance, education expenses, company-wide performance bonuses, robust HR practices, career advancement opportunities, global flight benefits, emergency services, childcare services, and a generous leave policy. In addition, Etihad’s base in the UAE provides a tax-free environment to its employees.

Furthermore, contrary to counter claims, Etihad fully supports its cabin crew during and after their pregnancy. When a cabin crew member informs Etihad of a pregnancy, she is provided with appropriate ground duties for the duration of their pregnancy. During this time, she remains fully compensated and fully engaged on the ground. Cabin crew are also entitled to paid maternity leave if they have completed more than one year’s service. Our cabin crew are then able to return to their flying role at the end of their maternity leave period. The health and safety of our cabin crew remains paramount. Therefore, we follow the GCAA requirement that crew do not continue to fly while pregnant.

Etihad Airways is focused on being best in class and delivering a superior experience for our customers. Across our network, Etihad Airways currently employs some 24,000 staff from more than 140 different nationalities in roles ranging from pilots and crew to core staff at its Head Office and stations around the world. As an equal opportunity employer, we are extremely proud of this diversity. We have industry-leading training and performance standards for our pilots and crew, many of whom have come from legacy, unionized airlines in the U.S. and the European Union. For example, when United Airlines furloughed pilots during bankruptcy, we brought them on board at Etihad. We are not bound by seniority but rather place our pilots based on merits and performance. United captains became Etihad captains. This could not have happened in a unionized airline. When United ended its furlough, the pilots were free to return to their former employer if they so desired.

The airline industry is a symbol of human ingenuity and of determination to make the world a better place by connecting cultures, families and businesses. As a truly global airline, Etihad Airways represents the very best of that vision. At Etihad Airways, we have become a global, award-winning employer because we value our employees and we treat them with dignity and respect. As a result, they give us their very best; the same employee survey confirmed this when 92% of employees responded that they were willing to go beyond normal requirements in order to help Etihad succeed. This sort of employee motivation doesn’t just happen; it is a result of a very structured and deliberate strategy by Etihad as an employer genuinely committed to looking after its people. It is very clear that without Open Skies, our employees and consumers would have few choices but those airlines in the oligopoly of immunized alliances that dominate the global industry and seek to reduce the competitive landscape.

An ad by Etihad Airways looking for candidates for its cabin crew:

Etihad now hiring cabin crew

Copyright Photo: SPA/AirlinersGallery.com. Etihad Airways has been adding brand new Airbus A380s and Boeing 787-9 Dreamliners. Airbus A380-861 A6-APA (msn 166) climbs away from Lindon’s Heathrow Airport.

Video: Behind the Scenes – Flying Reimagined TV commercial:

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QANTAS Group weighs in after Australia orders the “two person” cockpit rule

QANTAS Airways (Sydney) has issued this statement after the Australian government mandated the “two people in the cockpit” rule for Australian carriers:

Following discussions with the Federal Government, regulators and industry, the Qantas Group will have two approved people in the cockpit at all times in-flight.

This includes Qantas, QantasLink, Network Aviation and Jetstar flights.

When one pilot needs to leave the cockpit for any reason, another authorised person will occupy the jump seat (as distinct from the control seats occupied by the Captain and First Officer) until they return.

This policy applies to aircraft with more than 50 seats. Of a total Qantas Group fleet of around 300 aircraft, this excludes Qantaslink’s fleet of 18 Q200s and Q300s, which generally operate on short sectors of one or two hours where the need for pilots to leave the cockpit is minimal.

Qantas Group flights have between two and four operating pilots on board, depending on duration and aircraft type.

The safety and health of customers and employees is the Qantas Group’s number one priority. We have a comprehensive safety management system that guards against risks to our operations.

There are numerous layers of screening and support for pilots, ranging from regular medical checks to stress management training and confidential counselling and pilot-to-pilot support networks.

Together with regulators and other airlines, Qantas will closely study any learnings that stem from the Germanwings tragedy to help make aviation even safer.

Our deepest sympathies are with the loved ones of all those on board flight 4U 9525.

Copyright Photo: SPA/AirlinersGallery.com. Airbus A380-842 VH-OQB (msn 015) climbs away from the runway at London Heathrow Airport bound for Sydney.

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