Delta Air Lines (Atlanta) is adding another new route from its growing Seattle/Tacoma hub. SEA-Puerto Vallarta, Mexico service will be initiated on December 20 with Boeing 737-800s. The route will be operated on a weekly basis (three days a week during the Christmas-New Year holidays) per Airline Route.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-832 N390DA (msn 30536) climbs away from the runway at Los Angeles International Airport.
Delta Air Lines (current):
Turkish Boeing 737-9F2 TC-JYA is pulled to safety and passengers evacuated after a fuel truck catches on fire in Nigeria
Turkish Airlines (Istanbul) Boeing 737-9F2 ER TC-JYA (msn 40973), pictured above, was reportedly slightly damaged at Kano, Nigeria on Tuesday night (July 22) as it was being refueled. The fuel truck, which was refueling the airliner, suddenly caught on fire. The Boeing 737 was quickly pulled out of the way and the passengers were safely evacuated, just in time. The aircraft was in-transit from Kano to N’djamena, Chad as flight TK 587. The flight was cancelled pending an inspection for any damages.
Read the full report from the Guardian: CLICK HERE
Copyright Photo: James Helbock/AirlinersGallery.com. Boeing 737-9F2 ER N973TK (msn 40973) became TC-JYA when it was handed over on December 9, 2011.
Record quarterly net income, excluding special items*, of $485 million, or $.70 per diluted share, compared to second quarter 2013 net income, excluding special items, of $274 million, or $.38 per diluted share. This exceeded the First Call consensus estimate of $.61 per diluted share.
Record quarterly net income of $465 million, or $.67 per diluted share, which included $20 million (net) of unfavorable special items, compared to second quarter 2013 net income of $224 million, or $.31 per diluted share, which included $50 million (net) of unfavorable special items.
Record quarterly operating income of $775 million. Excluding special items, record quarterly operating income of $819 million, resulting in a 16.3 percent operating margin**.
Return on invested capital*, before taxes and excluding special items, for the 12 months ended June 30, 2014, of 17.1 percent, as compared to 8.5 percent for the 12 months ended June 30, 2013.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated:
“We are very pleased with our strong second quarter earnings performance. Net income, excluding special items, of $485 million, or $.70 per diluted share, represents our fifth consecutive quarter of record profits. The successful execution of our strategic initiatives continues to contribute significantly to these record profits. Second quarter 2014 total operating revenues reached an all-time quarterly high of $5.0 billion, benefiting from an 8.5 percent year-over-year increase in passenger revenues. Also, we were very pleased with our cost performance. Operating expenses benefited from our strategic initiatives, as well, and were comparable to second quarter last year.
“My hearty congratulations and thanks go to our hard-working and dedicated Employees for our outstanding second quarter results, which resulted in record quarterly profitsharing expense of $127 million. Over the last twelve months, our exceptional earnings performance, combined with our actions to prudently manage our invested capital, produced a 17.1 percent pre-tax return on invested capital, excluding special items (ROIC). This positions us well to meet or exceed our 15 percent pre-tax ROIC target for full year 2014.
“Our network development and optimization efforts continue, and we are very pleased with the performance across our system. Second quarter load factor and passenger revenue yield were records, even with a large percentage of the route system in the conversion or development stage. We announced our initial nonstop offerings from Dallas Love Field with the upcoming sunset of the Wright Amendment restrictions on October 13, and nearly tripled the flights we currently offer at Reagan National Airport, effective November 2 this year. On July 1, we inaugurated international service on Southwest Airlines, with flights to Oranjestad, Aruba; Montego Bay, Jamaica; and Nassau/Paradise Island in The Bahamas. We plan to fully convert AirTran’s remaining international markets and domestic flying by the end of this year. We expect roughly flat 2014 available seat miles, year-over-year, and intend to expand the network in a disciplined manner. For 2015, we currently expect our available seat miles to increase, year-over-year, largely driven by a two to three percent growth in seats from the upgauging of our fleet, along with a higher percentage of our fleet in revenue service post-integration.
“During second quarter, we announced the selection of Amadeus to implement the Altéa reservations solution to support our domestic network, following the successful implementation of Amadeus’ international solution this year. This allows us to replace the legacy reservation system used by Southwest. The AirTran reservation system is expected to be retired at this year’s end.
“Our balance sheet, liquidity, and cash flows remain strong. At the end of second quarter 2014, we had $4.0 billion in cash and short-term investments. For first half 2014, net cash provided by operations was $2.46 billion, and capital expenditures were $907 million, resulting in strong free cash flow* of $1.55 billion. We repaid $119 million in debt and capital lease obligations during first half 2014, and intend to repay an additional $440 million in debt and capital lease obligations in the second half of this year. Thus far this year, we have returned $652 million to Shareholders through the payment of $97 million in dividends and the repurchase of $555 million in common stock. As always, we are committed to maintaining our financial strength and enhancing value to our Shareholders.”
Financial Results and Outlook
The Company’s second quarter 2014 total operating revenues increased 7.9 percent, while operating unit revenues increased 8.4 percent, on a 0.4 percent decrease in available seat miles and a 2.2 percent increase in average seats per trip, all as compared to second quarter 2013. Second quarter 2014 passenger revenues were $4.8 billion, which was an increase of 9.0 percent on a unit basis, as compared to second quarter 2013. A change to previously recorded estimates of tickets expected to spoil in the future resulted in additional passenger revenue of $47 million in second quarter 2014.
Thus far, July passenger revenue trends and bookings are strong. Based on these trends, and considering the strength of the year-ago comparison, the Company expects July 2014 passenger unit revenues to increase in the three percent range, as compared to July 2013.
Total operating expenses in second quarter 2014 increased 0.6 percent to $4.2 billion, as compared to second quarter 2013. Second quarter 2014 profitsharing expense was a record $127 million, compared to $78 million in second quarter 2013. The Company incurred costs (before profitsharing and taxes) associated with the acquisition and integration of AirTran, which are special items, of $38 million during second quarter 2014, compared to $26 million in second quarter 2013. Cumulative costs associated with the acquisition and integration of AirTran, as of June 30, 2014, totaled $466 million (before profitsharing and taxes). The Company expects total acquisition and integration costs to be approximately $550 million (before profitsharing and taxes). Excluding special items in both periods, total operating expenses in second quarter 2014 increased 0.7 percent to $4.2 billion, as compared to second quarter 2013.
Second quarter 2014 economic fuel costs were $3.02 per gallon, including $.05 per gallon in favorable cash settlements from fuel derivative contracts, compared to $3.06 per gallon in second quarter 2013, including $.05 per gallon in unfavorable cash settlements from fuel derivative contracts. Based on the Company’s fuel derivative contracts and market prices as of July 21, 2014, third quarter 2014 economic fuel costs are expected to be in the $2.95 to $3.00 per gallon range, compared to third quarter 2013′s economic fuel costs of $3.06 per gallon. As of July 21, 2014, the fair market value of the Company’s hedge portfolio through 2018 was a net asset of $381 million. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.
Excluding fuel and oil expense, profitsharing, and special items in both periods, second quarter 2014 operating costs increased 1.1 percent from second quarter 2013, and increased 1.7 percent on a unit basis. Based on current cost trends, and excluding fuel and oil expense, profitsharing, and special items, the Company expects a year-over-year increase in its third quarter 2014 unit costs, comparable to the second quarter 2014 year-over-year increase.
Operating income in second quarter 2014 was $775 million, compared to $433 million in second quarter 2013. Excluding special items, operating income was $819 million in second quarter 2014, compared to $479 million in the same period last year, a 71.0 percent increase year-over-year.
Other expenses in second quarter 2014 were $29 million, compared to $70 million in second quarter 2013. The $41 million decrease primarily resulted from $3 million in other losses recognized in second quarter 2014, compared to $47 million recognized in second quarter 2013. In both periods, these losses included ineffectiveness and unrealized mark-to-market amounts associated with a portion of the Company’s fuel hedging portfolio, which are special items. Excluding these special items, second quarter 2014 had $15 million in other losses, compared to $12 million in second quarter 2013, primarily attributable to the premium costs associated with the Company’s fuel derivative contracts. Third quarter 2014 premium costs related to fuel derivative contracts are currently estimated to be $15 million, compared to $22 million in third quarter 2013. Net interest expense in second quarter 2014 was $26 million, compared to $23 million in second quarter 2013.
For the six months ended June 30, 2014, total operating revenues increased 5.2 percent to $9.2 billion, while total operating expenses decreased 0.4 percent to $8.2 billion, resulting in operating income of $991 million, compared to $503 million for the same period last year. Excluding special items, operating income was $1.1 billion for first half 2014, compared to $591 million for first half 2013.
Net income for first half 2014 was $617 million, or $.88 per diluted share, compared to $283 million, or $.39 per diluted share, for the same period last year. Excluding special items, net income for first half 2014 was $611 million, or $.87 per diluted share, compared to $328 million, or $.45 per diluted share, for the same period last year.
Balance Sheet and Cash Flows
As of June 30, 2014, the Company had $4.0 billion in cash and short-term investments, and a fully available unsecured revolving credit line of $1 billion. Net cash provided by operations during second quarter 2014 was $1.34 billion, and capital expenditures were $500 million, generating strong free cash flow of $838 million. The Company repaid $73 million in debt and capital lease obligations during second quarter 2014.
During second quarter 2014, the Company returned $282 million to its Shareholders through the payment of $42 million in dividends and the repurchase of $240 million in common stock, or 7.6 million shares. The Company completed its previous $1.5 billion share repurchase program with the repurchase of $20 million in common stock in early May. On May 14, 2014, the Company’s Board of Directors authorized a new $1 billion share repurchase program, along with a 50 percent increase in the Company’s quarterly dividend. Under the new $1 billion share repurchase program, the Company repurchased an additional $220 million in common stock during second quarter 2014, including $200 million repurchased under an accelerated share repurchase program with a third party financial institution. During second quarter 2014, pursuant to the accelerated share repurchase program, the Company advanced $200 million to the financial institution and received six million shares of the Company’s common stock, representing an estimated 75 percent of the shares the Company expects to purchase under the accelerated share repurchase program. The specific number of shares that the Company ultimately will repurchase under the accelerated share repurchase program will be determined generally based on a discount to the volume-weighted average price per share of the Company’s common stock during a calculation period to be completed during third quarter 2014. At settlement, under certain circumstances, the third party financial institution may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the third party financial institution. Pursuant to the settlement of the $200 million accelerated share repurchase program executed in first quarter 2014, the Company received an additional 1.7 million shares in common stock during second quarter 2014, bringing the total shares repurchased under the first quarter accelerated share repurchase program to 8.6 million.
During second quarter 2014, the Company’s fleet increased by seven to 683 aircraft at period end. This reflects the second quarter 2014 delivery of 12 new Boeing 737-800s and three pre-owned Boeing 737-700s, as well as the retirement of one Boeing 737-500. In addition, the Company removed seven Boeing 717-200s from service during second quarter 2014 in preparation for transition out of the fleet.
Boeing 737 NG Delivery Schedule:
*Additional information regarding special items is included in the accompanying reconciliation tables, and see Note Regarding Use of Non-GAAP Financial Measures.
**Operating margin, excluding special items, is calculated as operating income, excluding special items, divided by operating revenues.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-7H4 N280WN (msn 32533) in the Penguin One special livery arrives in Los Angeles.
Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported second quarter 2014 GAAP net income of $165 million, or $1.19 per diluted share, compared to $104 million, or $0.74 per diluted share in the second quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments of $13 million ($8 million after tax, or $0.06 per diluted share), the company reported record adjusted net income of $157 million, or $1.13 per diluted share, compared to adjusted net income of $105 million, or $0.74 per diluted share, in 2013.
Read the full report: CLICK HERE
Copyright Photo: Mark Durbin/AirlinersGallery.com. Alaska Airlines has already added Aviation Partners Boeing Split Scimitar Winglets to 12 Boeing 737 aircraft. Boeing 737-890 N588AS (msn 35685) with SS Winglets taxies at San Francisco.
China Eastern Airlines (Shanghai) has begun offering Wi-Fi service over China. The airline issued this statement:
In a first for the commercial aviation industry in China, China Eastern Airlines (CEA) has begun offering broadband connected flights over China using China Telecom Satellite aeronautical service and Panasonic Avionics Corporation’s (Panasonic) eXConnect system.
The first of 27 CEA aircraft equipped with a system and service tailored to the unique requirements of China is an Airbus A330 aircraft. Onboard, passengers will experience true broadband Wi-Fi as they surf the web, keep in touch with friends and family through their social networks, and even check their email – all at 35,000 feet. CEA has also selected China Telecom Satellite’s service and Panasonic’s eXConnect system for an additional six Boeing 767s and 20 Boeing 777 aircraft.
The first aircraft has been dedicated to routes between Shanghai and Beijing, allowing government agencies to observe operation of the service before granting full regulatory approval for operation on additional domestic and international routes.
China Eastern Airlines said, “We are very excited to offer this extremely exciting service with China Telecom Satellite and Panasonic Avionics. This is a tremendous milestone for China and we look forward to ensuring our passengers are both entertained and productive as they fly.”
Lv Junli, President of China Telecom Satellite, added, “This is a momentous day for China’s commercial airline industry, and we are very confident of providing better broadband connectivity to China with our partners at China Eastern Airlines and Panasonic.”
According to Paul Margis, President and Chief Executive Officer of Panasonic Avionics, “After years of close collaboration with China Eastern Airlines and China Telecom Satellite, we are now witnessing the next step in the evolution of in-flight entertainment over China. We are very excited to bring in-flight broadband Wi-Fi to this strategic market.”
About Panasonic Avionics Corporation
Panasonic Avionics Corporation is the world’s leading supplier of in-flight entertainment and communication systems. The company’s best-in-class solutions, supported by professional maintenance services, fully integrate with the cabin enabling airlines to deliver the ultimate travel experiences with a rich variety of entertainment choices, resulting in improved quality communication systems and solutions, reduced time-to-market and lower overall costs.
Established in 1979, Panasonic Avionics Corporation, a U.S. corporation, is a subsidiary of Panasonic Corporation of North America, the principal North American subsidiary of Panasonic Corporation. Headquartered in Lake Forest, California with over 3,100 employees and operations in 80 locations worldwide, it serves over 200 customers worldwide and provides IFEC systems on over 3,700 aircraft. For additional information, please visit http://www.panasonic.aero
About China Telecom Satellite Communications Limited
Dedicated to satellite communications services, China Telecom Satellite Communications Limited, as a wholly-owned subsidiary of China Telecom, specializes in the operation of its parent corporation’s satellite communications business. It serves as the resource center, product integration center and professional support center of China Telecom’s satellite communications business, mainly engaged in Satellite mobile communications, Very Small Aperture Terminal (VSAT) communications, International private line and Satellite broadband access, etc., providing integrated (Aviation/Land/Maritime) satellite communications and broadcasting operating service with characteristics to subscribers.
Copyright Photo: Steve Bailey/AirlinersGallery.com. Brand new Boeing 737-89P WL B-1965 (msn 41473) was just delivered to China Eastern Airlines on July 19, 2014.
Sun Country Airlines (Minneapolis/St. Paul) is expanding in the Caribbean, Mexico and Central America this coming winter with new seasonal service. The airline will start weekly service from MSP to St. Maarten (December 20 through April 4), Manzanillo (January 8 through April 2) and Rio Hato (near Panama City) December 26 through April 3 per Airline Route.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 737-752 N714SY (msn 33786) taxies at Los Angeles.
WestJet (Calgary) has announced the 2014-2015 winter schedule featuring two new destinations, one new route and increased frequency on 19 additional routes. Twice-daily nonstop service between Toronto (Pearson) and Fredericton, New Brunswick begins on April 15, 2015, and weekly nonstop service between Calgary and Loreto, Mexico, launches on February 14, 2015. Weekly flights between Winnipeg and Fort Lauderdale/Hollywood operate Saturdays starting on November 1, 2014.
Flights to Fredericton will be operated by WestJet Encore (Calgary) using its fleet of 78-seat, Canadian-made Bombardier DHC-8-402 (marketed as the Q400) NextGen aircraft.
Earlier this year, WestJet unveiled four additional new routes as part the 2014-2015 winter schedule.
WestJet Encore service between Calgary and Penticton begins October 26, 2014, Edmonton to Kamloops service starts February 15, 2015, and Quebec City welcomes twice-daily flights beginning March 15, 2015. Daily WestJet service between Toronto and Phoenix launches October 26, 2014.
WestJet Encore was launched in June 2013 operating 10 departures daily to two destinations with two aircraft and 131 employees. Today, it operates 90 departures daily to 19 destinations with 12 aircraft and approximately 500 employees.
Copyright Photo: Wingnut/AirlinersGallery.com. Captured at an unusual angle, Boeing 737-8CT C-GAWS (msn 38880) with the special #100 Boeing 737 NG markings taxies at Los Angeles International Airport (LAX).
Flyvista (Tbilisi) is a new airline in the Republic of Georgia. The airline received its first aircraft, the pictured Boeing 737-33R registered as 4L-AJC (msn 28873), on July 10. It is being leased from GECAS.
The new airline is planning to launch operations in August.
The company describes its plans on its website:
Flyvista, the new Georgian low-cost carrier plans to launch operations in the coming months.
Utilizing a moderately sized fleet of Airbus A320 and Boeing 737 aircraft, the airline intends to offer affordable flights to neighboring countries from its base in the country’s capital, Tbilisi.
Definitive network plans haven’t been disclosed, but several destinations have been highlighted as likely, such as Almaty (Kazakhstan); Baku (Azerbaijan); Istanbul (Turkey); Kiev, (Ukraine); Minsk, (Belarus); Moscow, (Russia); Prague (Czech Republic) and Tehran, (Iran).
Flyvista is a partner of Aerovista, an aircraft leasing, charter and management solutions provider.
Copyright Photo: Flyvista.
Our Airline (Nauru Air Corporation) (formerly Air Nauru) (Nauru and Brisbane) has decided to rebrand again. The flag carrier of the Republic of Nauru has decided to rename itself as Nauru Airlines effective August 1, 2014.
Read the full story from the Solomon Star: CLICK HERE
The airline is also adding a Boeing 737-300 freighter (VH-VLI, msn 27125) per ch-aviation.
Copyright Photo: John Adlard/AirlinersGallery.com. Boeing 737-3Y0 VH-INU (msn 23684) taxies at Sydney.
Boeing (Chicago and Seattle) and Hainan Airlines (Haikou and Beijing) today announced that the two companies are finalizing terms and working toward a purchase agreement for 50 737 MAX 8s, reaffirming the Chinese airline’s preference for an all-Boeing single-aisle fleet.
The commitment, valued at more than $5.1 billion at current list prices, will be subject to the approval of the Chinese government and will be posted on Boeing’s Orders & Deliveries website once all contingencies are cleared.
The 737 MAX has surpassed 2,100 orders from 42 customers worldwide and is the fastest selling airplane in Boeing history. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.
Boeing (Chicago and Seattle) and Air Algerie (Algiers) today announced an order for two Next-Generation 737-700C (Convertible) airplanes, valued at $152 million at current list prices. The order continues Air Algerie’s fleet renewal and expansion following January’s order for eight 737-800s.
The addition of 737-700Cs to the Algerian-flag carrier’s fleet will provide the airline with increased flexibility depending on passenger and cargo demands. The order was booked in May 2014 and previously posted as unidentified on the Boeing Orders & Deliveries website.
The 737-700C is a derivative of the 737-700 with strengthened wings, a main-deck cargo door and an in-floor cargo-handling system. In an all-passenger layout, the 737-700C can carry up to 140 passengers, while the all-cargo layout provides up to 40,000 pounds (18,200 kilograms) of capacity.
Based in Algeria’s capital city Algiers, at Houari Boumedienne International Airport, Air Algerie currently serves more than 40 destinations across Africa, Asia, Europe, North America and the Middle East. The North African carrier currently operates a fleet of 17 737-800s and five 737-600s and following today’s announcement has a total of eight 737-800s and two 737-700Cs unfilled orders from Boeing.
Boeing (Chicago and Seattle) rolled out the 5000th Next-Generation 737 this week. The airplane is a Boeing C-40A Clipper, a modified 737-700C, that will serve as a transport aircraft for the U.S. Navy.
Utilizing the 737 commercial platform takes advantage of the proven efficiencies, manufacturing processes and performance of the existing Next-Generation 737 production system. Boeing’s P-8 maritime patrol aircraft, Airborne Early Warning and Control (AEW&C) and the C-40 are among the 737 military derivatives.
To date, orders stand at 6,804 for Next-Generation 737s and 2,109 for 737 MAXs. Total 737 orders have surpassed 12,000 including Classics and more than 100 orders for military derivatives.
Copyright Photo: Boeing.
Boeing (Chicago and Seattle) and Avolon (Ireland) have announced the leasing company’s commitment for six 787-9 Dreamliners and five additional 737 MAX 9 airplanes, valued at more than $2 billion at current list prices.
This commitment marks Avolon’s first order for the efficient 787 Dreamliner and will increase the lessor’s 737 MAX portfolio to 20 airplanes. When finalized, the order will be posted on the Boeing Orders & Deliveries website.
According to Boeing, “The Boeing 787-9 Dreamliner is the second member of the super-efficient 787 family. Both the 787-8 and 787-9 bring the economics of large jets to the middle of the market, with 20 percent less fuel use and 20 percent fewer emissions than similarly sized airplanes and passenger-pleasing features. At 20 feet (6 meters) longer than the 787-8, the 787-9 extends the family in capacity and range, flying more passengers and more cargo farther.”
Okay Airways (OKAir) orders six Boeing 737 MAX 8s and four 737-800s, will also operate the 737-900ER
Boeing (Chicago and Seattle) and Okay Airways (stylized as OKAir) (Tianjin) announced an order today for six 737 MAX 8s and four Next-Generation 737-800s, valued at $980 million at current list prices.
Okay Airways, the first privately owned airline in China, also announced it will convert five 737-800s from a previous order into 737-900 ERs (Extended Range). With today’s conversion announcement, Okay Airways will be the first airline in China to operate the 737-900 ER and has eight of the airplanes on order.
Okay Airways is headquartered in Beijing with its main hub at Tianjin Binhai International Airport. Its jetliner fleet includes 12 Boeing 737-800s and one Boeing 737-300 Freighter, which serves 40 domestic destinations.
Monarch Airlines will continue to be a Boeing customer, preparing to finalize an order for 30 737 MAX 8s
Boeing (Chicago and Seattle) and Monarch Airlines (London-Luton) today announced that the two companies are finalizing terms and working towards a Purchase Agreement for 30 737 MAX 8s, marking the start of a fleet transition for Monarch to Boeing single-aisle airplanes.
The order, valued at $3.1 billion at current list prices, will be posted to the Boeing Orders & Deliveries website when finalized.
According to Boeing, “The 737 MAX has surpassed 2,000 orders from 42 customers worldwide, the most successful launch in Boeing history. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.
The 737 MAX 8 provides customers with more flexibility and cost efficiency than the competition in the heart of the single-aisle market. Airlines operating the 737 MAX 8 will see an 8 percent operating cost per seat advantage over the A320neo. In addition to lower fuel use, the 737 MAX reduces the operational noise footprint by 40 percent compared to today’s airplane.”
Headquartered at London Luton Airport, but also operating from five other U.K. bases, Monarch predominantly serves holiday destinations around the Mediterranean and the Canary Islands as well as European ski resorts. Founded in 1968, the British carrier’s passenger numbers reached nearly 7 million in 2013, a record for the airline, with a fleet made up of more than 40 airplanes.
Monarch had been adding Airbus A320 Family aircraft so this is an important switchover catch for Boeing.
In the meantime, Monarch releases this statement:
The Monarch Group, the UK’s leading independent travel group, today announces that it has chosen Boeing as its preferred bidder for its narrow-bodied fleet replacement. The Group is in the process of finalizing terms and working towards signing a Purchase Agreement with Boeing for the purchase of 30 Next Generation Boeing 737 MAX 8 aircraft, with options on a further 15 aircraft.
The announcement with Boeing represents the latest major milestone in the transformation and renewal of The Monarch Group, and is integral to realizing the opportunity for Monarch Airlines to differentiate itself in its market whilst bringing back warmth and a personal touch to European air travel.
Iain Rawlinson, Executive Chairman of the Monarch Group, said: “Today’s announcement is an important milestone in an exhaustive three year evaluation process, and a key part of The Monarch Group’s transformation and renewal. Boeing truly understood our business and put together a complete package that fits extremely well with our ambitions for the Group. With this announcement, we begin another chapter in our long and fruitful relationship with Boeing – something which now stretches over 40 years.”
Andrew Swaffield, Managing Director of Monarch Airlines, said: “I joined Monarch Airlines because I saw that it has a unique brand, and exceptional people. We see an opportunity to bring back warmth and a personal touch to a very commoditised European aviation market. Our size enables us to deliver on this promise. With this fleet replacement we are choosing the correct number of aircraft and the correct size of aircraft to help us create a year round efficient European operation which maximizes profitability. Our process has been rigorous and fair and I am delighted to have been given the opportunity to lead it to a successful conclusion.
“Having reviewed all of the options in the marketplace, we concluded that the Boeing 737 MAX 8 is the aircraft that best fits our future route network strategy, enabling us to tightly control our unit costs whilst offering a superior service to our customers.”
Boeing (Chicago and Seattle) today (July 11) delivered to Nok Airlines Public Company Limited (Nok Air) (Bangkok) this Boeing 737-86J registered as HS-DBQ (msn 37794) painted in this 10th Anniversary special livery.
The 737-800, owned by Ireland-based leasing company Avolon and operated by Nok Air, features the traditional bird-themed livery with the addition of stars, streamers and “10th Anniversary” painted on the airplane to celebrate the milestone. The aircraft was previously planned to go to Airberlin.
Nok Air means Bird Air in the Thai language.
Copyright Photo: Steve Bailey/AirlinersGallery.com. Nok Air’s brand new 737-800 lands at Boeing Field in Seattle.
Current Route Map:
Alaska Airlines (Seattle/Tacoma) has announced it will be the first airline to get Boeing’s new “Space Bins”. The airline issued this statement through its Alaska Air Blog:
Aiming to improve onboard storage and make flying easier for customers, Alaska Airlines will be the first carrier to get Boeing’s innovative Space Bins. The larger overhead bins have a similar look and feel to Alaska’s current Boeing Sky Interior pivot bins yet hold more bags.
Space Bins on an Alaska Airlines 737-900 ER will hold as many as 174 standard carry-on bags, a 48 percent increase compared to current bins that hold up to 117 bags. Space Bins are deep enough to store nonstandard items, such as a guitar. Space Bins will arrive on all Next-Generation 737 and 737 MAX airplanes delivered to Alaska Airlines starting in late 2015.
Listening to customers:
“Boeing listened to Alaska when developing its innovative new 737 Space Bins,” said Mark Thompson, Boeing sales director. “Flight attendants, customer service agents and others visited Boeing’s design center, tested prototypes and gave Boeing’s designers insightful feedback. In addition, Boeing engineers who regularly fly Alaska observed first-hand how customers load bags into bins. Boeing truly appreciates its special partnership with Alaska Airlines.”
The new bins are one way that Alaska is listening to customers to improve service.
“Alaska is committed to making flying a hassle-free and comfortable experience,” said Mark Eliasen, Alaska Airlines treasurer and vice president of finance. “The additional storage space will allow our customers to keep their personal items with them in the cabin, which we think they will enjoy.”
Faster and easier boarding
When open, the bin’s bottom edge hangs about 2 inches lower, which means people don’t have to lift their bags as high to load them. The deeper bins allow more bags to be stowed, and let customers load overstuffed bags with less struggle.
That should cut boarding times, improve on-time performance and require less intervention from flight attendants.
Flight attendant representatives who tried the Space Bins preferred them over traditional Boeing Sky Interior bins.
“We are appreciative that flight attendant feedback had an impact on this decision,” said Matthew Coder, manager of inflight experience at Alaska Airlines. “The Space Bins will let customers easily toss their bags in, which means flight attendants can spend less time and effort reorganizing things, and more time engaged with our customers.”
Continuously improving the 737
Although the 737 is the world’s best-selling single-aisle airplane, Boeing is committed to continuous improvements that make it even better for Alaska Airlines employees and customers.
“We’re taking the Boeing Sky Interior, which is hugely popular with our airline customers and passengers, and building on that success by adding even more room for bags,” said Beverly Wyse, vice president and general manager of the 737 program for Boeing Commercial Airplanes. “One of the reasons the 737 is the world’s best-selling airplane is because we work with our customers to continuously improve the airplane with features such as Space Bins.”
Alaska Airlines flies an all-Boeing fleet of 737 airplanes, including 20 737-900 ERs. The carrier has 66 firm orders for 737-900 ERs and 737 MAX aircraft to be delivered through 2022, including an order of four 737-900 ERs finalized this month.
Boeing also released this statement:
Boeing announced the launch of its new Space Bins today (July 10), which provide more room for carry-on bags. Space Bins are now available as an optional feature on new Next-Generation 737s and 737 MAX airplanes.
Each of the larger Space Bins will stow six bags, two more than the current pivot bins installed on Next-Generation 737s with the Boeing Sky Interior. That’s based on a standard size carry-on bag measuring 9-in x 14-in x 22-in (23 cm x 36 cm x 56 cm).
“We’re taking the Boeing Sky Interior, which is hugely popular with our airline customers and passengers, and building on that success by adding even more room for bags,” said Beverly Wyse, vice president and general manager, 737 program, Boeing Commercial Airplanes. “One of the reasons the 737 is the world’s best selling airplane is because we work with our customers to continuously improve the airplane with features such as Space Bins.”
With a lower bin lip height, Space Bins provide increased visibility into the back of the bins and make bag loading even easier. They’re also as easy to close as the current pivot bins, but require no bin assist mechanism.
Launch customer and hometown partner Alaska Airlines will begin installing Space Bins on all new deliveries as soon as the larger bins become available in late 2015.
Boeing’s Space Bins will also be available for retrofit on in-service Next-Generation 737s.
Copyright Image: Alaska Airlines.
Gol Transportes Aereos (Sao Paulo) will soon operate biofuel flights to the United States. In association with Amyris, the two parties have issued this announcement:
Amyris has partnered with Gol to begin the first commercial route with farnesane, the recently approved renewable jet fuel.
Gol has committed to fly its Boeing 737 fleet with up to a 10 percent blend of the renewable fuel on its U.S. to Brazil routes starting with initial flights later in July 2014. Supported by Boeing, the Inter-American Development Bank (IDB) and other partners, Amyris is working to bring this new, renewable jet fuel to commercial airlines starting with Gol.
Developed by Amyris, an industrial bioscience company, and Total, one of the world’s leading energy companies, this new aviation renewable fuel meets the rigorous performance requirements set for Jet A/A-1 fuel used by the global commercial aviation industry. On June 15, 2014 ASTM revised the ASTM for jet fuel standard, paving the way for airlines to use Synthesized Iso-Paraffin (SIP) farnesane as a jet fuel component in commercial airlines globally. When produced sustainably, farnesane can reduce greenhouse-gas emissions by up to 80% on a lifecycle basis compared to traditional petroleum fuels.
Amyris is an integrated renewable products company focused on providing sustainable alternatives to a broad range of petroleum-sourced products. Amyris uses its industrial bioscience technology platform to
convert plant sugars into a variety of hydrocarbon molecules – flexible building blocks that can be used in a wide range of products. Amyris is commercializing these products both as No Compromise (R) renewable ingredients in cosmetics, flavors and fragrances, polymers, lubricants and consumer products, and also as No Compromise renewable diesel and jet fuel. Amyris Brasil Ltda., a subsidiary of Amyris, oversees the establishment and expansion of Amyris’s production in Brazil.
Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Boeing 737-8HX PR-GUT (msn 38878) arrives in Sao Paulo (Congonhas).
Delta Air Lines (Atlanta) effective August 1 will reduced its service on the Atlanta-Caracas route to one flight a week per Airline Route. This move follows the actions of American Airlines. Both carriers are reducing services to CCS due to the Venezuelan government’s attempt to disallow the transfer of funds out of Venezuela.
Copyright Photo: Jay Selman/AirlinersGallery.com. The route will now be operated with smaller Boeing 737-700s. Boeing 737-732 N309DE (msn 29634) arrives at the New York (JFK) hub.
US Airways (Phoenix and Dallas/Fort Worth) has decided to honor the long line of Boeing 737 Classic aircraft with a special flight “US 0737″ that will be flown on the last day of revenue passenger operations for the last Boeing 737-400 on August 19.
US Airways, with the previously legacy operations of Allegheny Airlines, USAir, Piedmont Airlines and now US Airways, the airline has flown the Boeing 737-200, 737-300 and 737-400 models. This is the last flight of a Classic 737 for the company.
The new American Airlines will continue to operate the Next-Generation Boeing 737-800 model. This special flight is available to the public and employees who want to experience history of the last flight.
Passengers and employees on this special flight will pay tribute to the many years of faithful service this aircraft type has provided to the legacy US Airways certificate holder.
The special flight will be routed from Charlotte (CLT) to Dallas/Fort Worth (DFW), then on to Philadelphia (PHL) and finally back to Charlotte to close this chapter of airline history. Extra time is being allocated at each station for special farewell ceremonies.
Previously on November 26, 2012 US Airways retired its last Boeing 737-300 from revenue service. Aircraft 737-3B7 N530AU (msn 24412) operated flight US 1611 from Raleigh/Durham to the Charlotte hub ending 28 years of faithful service
The now finalized schedule of special flight US 0737 on Tuesday August 19, 2014:
Thank you US Airways and the American Airlines Group for honoring airline history and for organizing this special goodbye flight.
Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-4B7 N443US (msn 24842) taxies to the runway at the Charlotte Douglas International Airport (CLT) hub.
Ryanair (Dublin) has announced significant growth for Scotland with three new routes between Edinburgh and London (Stansted), Glasgow and London (Stansted) and Glasgow and Dublin (three times daily), as well as a new base at Glasgow International (Ryanair’s 69th in total).
Ryanair’s existing once daily flight from Glasgow Prestwick to Dublin will now switch to Glasgow International as part of an expanded three times daily business service between Glasgow and Dublin. Despite this switch Ryanair remains committed to its long standing base at Prestwick where the airline has a major maintenance facility and is currently in discussions with Glasgow Prestwick and the Scottish Government, its new owners, to explore growth opportunities to/from Prestwick Airport.
From October 26, 2014, Ryanair will base three Boeing 737-800s at Edinburgh, one at Glasgow (International) and one at Glagow (Prestwick).
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-8AS EI-DLB (msn 33584) taxies at Nantes.
Skymark Airlines (Tokyo-Haneda) on July 19 will introduce a “One Piece Jet” special livery based on the popular Japanese cartoon series according to ZipanguFlyer.
According to Wikipedia, “One Piece is a Japanese manga series written and illustrated by Eiichiro Oda. It has been serialized in Weekly Shōnen Jump since August 4, 1997; the individual chapters are being published in tankōbon volumes by Shueisha, with the first released on December 24, 1997, and the 74th volume released as of June 2014. One Piece follows the adventures of a young boy named Monkey D. Luffy, a young boy whose body gains the properties of rubber after unintentionally eating a Devil Fruit, and his diverse crew of pirates, named the Straw Hat Pirates. Luffy explores the ocean in search of the world’s ultimate treasure known as One Piece in order to become the next Pirate King.”
Read the full story from ZipanguFlyer: CLICK HERE
Interair (Johannesburg) on June 23 launched Johannesburg-Dar es Salaam flights with its Boeing 737-200s. Interair is one of the last passenger operators of the 737-200.
Interair’s business plan as a regional carrier is to connect French-speaking African countries.
Besides Dar es Salaam, the airline’s current routes are: St Denis, Réunion Island; Brazzaville and Pointe Noire, Congo; Cotonou, Benin, Douala, Cameroon: Bangui, Central African Republic: Ouagadougou, Burkina Faso, Bamako, Mali.
Interair has code-share agreements with Air Austral.
The South African airline is celebrating its 20th anniversary. Some of the aircraft the airline has operated during these 20 years have been the de Havilland Canada DHC-7 Dash 7, Boeing 707, Boeing 727 and the Fokker F.28. The airline is currently operating the Boeing 737 and Boeing 767.
Copyright Photo: Paul Denton/AirlinersGallery.com. Ex-South African Airways Boeing 737-244 ZS-SIH (msn 22587)
Current Route Map:
Aloha Air Cargo (Honolulu) has announced the initiation of its fleet replacement plan with the purchase of two former Lufthansa Boeing 737-300SF all cargo converted aircraft. The first 737-300 (737-330 N301KH, msn 27904) was delivered on June 2, 2014 and recently entered operations with the second plane (737-330 N302KH, msn 27905) currently in its initial maintenance check, and scheduled to be delivered to Honolulu during the third quarter of this year – enhancing the carrier’s fleet mix to two Boeing 737-300s, two Boeing 737-200s, and three SAAB 340A turboprops.
The Boeing 737-300 boasts nine full cargo positions totaling upwards of 39,000 lbs of payload capacity; that is two positions and nearly 10,000 lbs more than its sister aircraft, the Boeing 737-200 that Aloha currently flies. With ETOPS (Extended Range Twin Operations) capability, more fuel efficient and quieter engines, and a greatly reduced environmental footprint, the airframe is superior in every way.
“Our current fleet of four Boeing 737-200 aircraft has served Aloha and our predecessor very well over the last several decades, but timing is key to begin transitioning to a newer airframe,” said Pat Rosa, Chief Operating Officer for Aloha Air Cargo. “We are excited to invest in the future of our company and its employees by adding the 737-300s to our fleet. With this addition, Aloha Air Cargo will continue to build upon its 30 year history for providing safe and reliable cargo services to our communities in Hawaii and beyond.”
Aloha Air Cargo delivers fast, economical and reliable transport of goods between the Hawaiian Islands of Oahu, Maui, Kauai and the Island of Hawaii. It became an independent cargo operator after the closure of Aloha Airlines passenger services in May 2008. Aloha Tech Ops is a division of Aloha Air Cargo and provides maintenance and engineering services to airlines in the State of Hawaii.
Aloha Air Cargo is owned by Seattle-based Saltchuk, which has been doing business in Hawaii since 2000 when it acquired Young Brothers/Hawaiian Tug & Barge. Committed to the welfare of Hawaii and strengthening the local economy, the company also acquired Hawaii Fuel Network, Maui Petroleum and Minit Stop Stores in 2006.
Copyright Photos: Aloha Air Cargo. Kahu Kordell Kekoa blessing the plane’s name: Kū Ha’aheo (meaning “to stand tall with unselfish pride”).
Current Route Map:
Southwest Airlines (Dallas) today (July 1) launched an international service by inaugurating service to three Caribbean destinations from three of its US gateway cities. Southwest Airlines’ first international departure, flight WN 1804 from Baltimore/Washington to Oranjestad, Aruba, departed on time at 8:30 am EDT, closely followed by Southwest flight WN 906 to Montego Bay, Jamaica, where its first-ever scheduled international arrival was planned for just after 11 am EDT. A midday flight from Baltimore/Washington to Nassau/Paradise Island also brings Southwest Airlines to The Bahamas.
Customers on the carrier’s inaugural international flights from Baltimore/Washington joined those in two other gateway cities of Atlanta, and Orlando who celebrated alongside Employees with commemorative beach balls, snorkels and masks.
At the Company’s corporate headquarters in Dallas, Employees staffed a command center in the pre-dawn hours to monitor operational performance and new technology systems developed in partnership with Amadeus, a leading technology provider to the global travel industry. Its Altea suite of technology solutions is powering Southwest’s reservations, inventory, and departure control functions for international flying.
Read the analysis by Bloomberg Businessweek: CLICK HERE
Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-8H4 N8633A (msn 36905) with the new Aviation Partners Boeing Split Scimitar Winglets arrives at Baltimore-Washington International Thurgood Marshall Airport (BWI).
Delta Air Lines (Atlanta) will fly weekly New York (JFK)-St. Lucia flights from December 20, 2014 through April 4, 2015. The winter seasonal flights will be operated with Boeing 737-800s according to Airline Route.
Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-832 N378DA (msn 30265) arrives in New York (JFK).
PEOPLExpress (Vision Airlines, dba PEOPLExpress) (Newport News/Williamsburg) yesterday (June 30) returned to the skies with low-fare service from Newport News/Williamsburg International Airport to three cities: Boston, Newark, and Pittsburgh.
The new name will expand to other destinations including West Palm Beach (July 15), Atlanta (August 1), and St. Petersburg/Clearwater and New Orleans (August 28).
Vision Airlines will fly Boeing 737-400 aircraft bearing the logo of the popular 1980s carrier of the same name but with a fresh, green livery.
Copyright Photos: PEOPLExpress.
Current Route Map:
PIA-Pakistan International Airlines (Karachi) retired its last two Boeing 737-300s (AP-BCD and AP-BCF) on June 17 according to The History of PIA.
PIA was the first Asian operator of Boeing 737-300. Initially a total of six Boeing 737-300s were delivered to PIA between May, 1985 and 1986. These Boeing 737s replaced its older Boeing 720Bs on PIA’s domestic and regional flights.
Copyright Photo: Ole Simon/AirlinersGallery.com. Boeing 737-340 AP-BCD (msn 23297) prepares to land in Dubai.
Delta Air Lines (Atlanta) has announced new nonstop service this winter to the Caribbean island of Barbados. Delta will add new nonstop flights beginning on December 4, 2014, twice weekly between Grantley Adams International Airport in Bridgetown and both New York’s John F. Kennedy International Airport, and Atlanta’s Hartsfield-Jackson International Airport.
Flights will operate Thursdays and Saturdays, and two flights will start simultaneously, one from New York into Barbados and then onto Atlanta; and then a second one originating in Atlanta, traveling to Barbados and on to New York.
The two Boeing 737-800s have a seating capacity of 160, consisting of 16 business class seats, 18 economy comfort seats and 126 economy seats on each flight.
Barbados is one of 97 international locations on Delta’s growing route map, and one of the more than 225 destinations throughout the Americas.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-832 N3763D (msn 29629) departs from Los Angeles.
Chart: Delta’s current fleet:
Belavia Belarusian Airlines (Minsk) and Boeing (Chicago and Seattle) have reached an agreement on an order for three Next-Generation 737-800 airplanes. Valued at $272 million at current list prices, this is the first direct purchase of Boeing airplanes for Belavia.
The new airplanes will be capable of carrying up to 189 passengers in economy class cabin. Belavia said it will use these airplanes on existing charter routes because the economic efficiency of the airplanes will reduce operational costs and the extended range will allow for nonstop flights to farther destinations, including Tenerife, Canary Islands and Dubai.
Belavia serves a network of routes between European cities and the Commonwealth of Independent States, as well as several Middle East destinations. The airline’s Boeing fleet currently consists of six 737-500s and seven 737-300s.
Copyright Photo: Karl Cornil/AirlinersGallery.com. The new airplanes will start the process of replacing the older Boeing 737 Classics including Boeing 737-3Q8 EW-283PA (msn 26333) arriving at Antalya, Turkey.
Sun Country Airlines (Minneapolis/St. Paul) starting on January 16, 2015 will add a new seasonal route to Nassau in the Bahamas from Minneapolis/St. Paul (MSP). The new route will initially operate weekly and then increase to three roundtrips a week starting on February 12, 2015.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-7Q8 N712SY (msn 28219) approaches the runway at Los Angeles International Airport.
WestJet (Calgary) today (June 24) launches new nonstop, twice-weekly service between Las Vegas and Fort McMurray, Alberta. Today’s inaugural flight represents even more service to Fort McMurray as part of a major expansion of flights into the oil sands region.
Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-76N C-GWSE (msn 33379) prepares to touch down in Las Vegas.
Alaska Airlines (Seattle/Tacoma) today (June 20) launched daily round-trip service between its Seattle/Tacoma hub (SEA) and Tampa, Florida (TPA).
Alaska Airlines is the only carrier offering nonstop service between Seattle and Tampa.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. The new route also increases the transit time from Tampa to the state of Alaska, especially during the peak summer travel market. Boeing 737-890 N588AS (msn 35685) departs from Anchorage International Airport (ANC) with the new Aviation Partners Boeing Split Scimitar Winglets.
Southwest Airlines (Dallas) used to be always near the top for on-time performance. Not any more. As the airline grew to become the largest domestic carrier in the United States that has all changed.
According to this article by Bloomberg Businessweek, “Southwest has ranked near the bottom of the U.S. Department of Transportation’s monthly tally of airline on-time performance for much of the past year, with only 72.9 percent of its flights arriving on schedule during the 12 months through April 30.”
For the August and beyond schedule period, Southwest is tweaking its schedule to improve its performance.
In the past, Southwest purposely avoided congested major airports but that too has changed as it has now entered most of the top markets in the United States and soon will fly to more overseas destinations.
Read the full article: CLICK HERE
Copyright Photo: Brian McDonough/AirlinersGallery.com. Southwest in the past celebrated its high scores in the top three indexes of passenger satisfaction (best on-time performance, best baggage handling and fewest customer complaints) with it special “Triple Crown” livery on Boeing 737-3H4 N647SW (msn 27717).
American Airlines (Dallas/Fort Worth) will continue expanding its domestic and international service from Los Angeles International Airport (LAX), further strengthening one of its key hubs and providing more access for customers across its growing global network. New service between Los Angeles and the following markets will be available for booking beginning this Saturday, June 21.
Edmonton, Alberta operated daily, beginning October 2
San Antonio operated twice daily, beginning October 2
Tampa, Florida operated daily, beginning November 6
Vancouver, British Columbia operated twice daily, beginning October 2
Service between LAX and Edmonton, San Antonio and Vancouver will be operated as US Airways Express with a two-class Bombardier CRJ900 aircraft. The new route between LAX and Tampa will be operated by American Airlines with a two-class Boeing 737-800 aircraft.
With these new markets, American will serve 53 domestic and international destinations from its LAX hub. Customers have access to even more global destinations through partners British Airways, Iberia, Qantas, Japan Airlines, Malaysia Airlines, Cathay Pacific and LAN, all of which offer convenient connections from Los Angeles.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-823 N980AN (msn 33203) departs the runway at Los Angeles International Airport (LAX).
Scandinavian Airlines-SAS (Stockholm) is again back in a financial crisis mode. After reporting a net loss of over $120 million in its fiscal second quarter ending on April 30, the airline has announced it is again tightening its efforts to reduce costs. This time it will include another 300 jobs being axed. The airline is coming under intense pressure from lower cost airlines like Norwegian and Ryanair.
Read the full report from the company: CLICK HERE
Read the analysis from the Wall Street Journal: CLICK HERE
Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 737-783 LN-RNU (msn 34548) arrives back at the Stockholm (Arlanda) hub.
American Airlines (Dallas/Fort Worth) is fed up with Venezuela and its socialist government which is forcing carriers to keep their ticket sales in the country’s currency, the Bolivar. Airlines are unable to export the proceeds. According to Bloomberg Businessweek, American was owed $750 million from its Venezuela sales through March 31 (probably higher today). As a result, American is slashing the number of weekly flights from the current 48 to only 10 starting next month. Air Canada and Alitalia have also ended service to Venezuela.
Read the full story: CLICK HERE
Copyright Photo: Steve Bailey/AirlinersGallery.com. Boeing 737-823 N950NN (msn 31194) taxies at Boeing Field in Seattle.
Boeing (Chicago and Seattle) has announced Southwest Airlines (Dallas) has selected Boeing Airplane Health Management (AHM) to enhance operational efficiency in its maintenance and engineering operations.
Southwest Airlines will use Airplane Health Management to collect and evaluate airplane operations data while the airplane is in flight. This real-time data is used to signal ground operations crews of any potential maintenance issues before the airplane lands, minimizing flight schedule disruptions and maintenance-related delays.
Boeing technical teams will work with Southwest to facilitate initial deployment of the system for its Next-Generation 737s. Southwest is Boeing’s 66th customer for Airplane Health Management.
According to Boeing, “Boeing Airplane Health Management is a powerful, data-driven capability used worldwide by airplane operators and maintenance, repair and overhaul providers (MROs) to proactively manage the serviceability of airplanes and fleets. It is designed to interface with existing airplane systems and communication infrastructure, using state-of-the-art airplane and ground technology to address day-of-operation disruptions, help predict future operations events and prevent unplanned maintenance and schedule interruptions.”
Airplane Health Management is part of an integrated suite of aviation services marketed as the Boeing Edge. These include parts, training, engineering, maintenance and software solutions that increase the efficiency and profitability of airlines and leasing companies.
Southwest Airlines is an all-Boeing carrier and operates the largest 737 fleet of any airline. In 2011, the airline became the launch customer for the 737 MAX.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-7H4 N214WN (msn 32486) in the special “Maryland One” state theme arrives at Los Angeles International Airport.
Turkish Airlines (Istanbul) and Boeing (Chicago and Seattle) today (June 16) finalized an order for 15 additional 737 MAX 8s, valued at $1.6 billion at list prices. The order follows the announcement in May 2013 when the Turkish flag carrier placed the largest Boeing order in the airline’s history for 50 737 MAXs and 20 Next-Generation 737s.
With today’s announcement, Turkish Airlines has more than 100 unfilled orders for Boeing airplanes; 65 737 MAXs, more than 25 Next-Generation 737s and 20 777-300ER (Extended Range) airplanes. The Istanbul-based carrier currently operates a fleet of more than 100 Next-Generation 737s and 15 777-300ERs.
The 737 MAX has surpassed 2,000 orders from 41 customers, bringing the most advanced engine technologies to the world’s best-selling airplane, building on the strengths of today’s Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. Airlines operating the 737 MAX will see an 8 percent operating cost per seat advantage over tomorrow’s competition.
Turkish Airlines currently serves 254 cities in 106 countries around the world from its base at Istanbul’s Ataturk Airport.
Copyright Photo: Greenwing/AirlinersGallery.com. Boeing 737-8F2 TC-JFU (msn 29781) prepares to depart from Dublin.
WestJet (Calgary) tonight (June 15) will mark a key milestone in its 18-year history with the launch of its first scheduled trans-Atlantic service between Toronto and Dublin, Ireland, with a brief stop in St. John’s, Newfoundland. The flight will arrive in Dublin tomorrow (June 16) at 7 a.m. (0700) local time.
Announced in November 2013, WestJet offered introductory fares between Toronto and Dublin starting from $199 including taxes, fees and surcharges on all flights in both directions from June 15 to October 5, 2014 – fares which sold out within the first 24 hours. Today, the service is heavily booked and well ahead of projections, recently prompting a three-week extension to October 25, 2014.
Details of WestJet’s new daily Dublin service from St. John’s are:
Copyright Photo: TMK Photography/AirlinersGallery.com. Boeing 737-8CT C-GWSZ (msn 37092) taxies at Toronto (Pearson) in the special Walt Disney World “Magic Plane” color scheme.
Pegasus Airlines (Istanbul) will launch Istanbul (Sabiha Gokcen)-Budapest flights on July 16. The new route will be operated four days a week.
Copyright Photo: Rolf Wallner/AirlinersGallery.com. Pegasus Airlines’ Boeing 737-82R TC-CPD (msn 40726) displays the 2009 color scheme at Zurich. TC-CPD also displays Pegasus Asia titles for its joint venture with Air Manas.
PAL Airlines (Santiago) has overcome all the issues raised by Chile’s DGAC (Civil Aviation Directorate) during the inspection of its facilities at Santiago’s Arturo Merino Benítez Airport. On June 11 the airline got its AOC back. PAL Airlines has begun operations again with Boeing 737-300 CC-AIT. A second aircraft is being prepared to fly football fans to the FIFA 2014 World Cup in Brazil.
Copyright Photo: Alvaro Romero/AirlinersGallery.com. Boeing 737-3G7 CC-ADZ (msn 23404) taxies at Santiago in a special football livery.
Special thanks to Alvaro Romero, reporting from Chile.
China Eastern Airlines (Shanghai) has committed to and plans to finalize an order for 80 new Boeing 737s.
Boeing issued this statement:
Boeing is pleased that China Eastern Airlines has committed to purchase 80 737s, including Next-Generation 737 and 737 MAX airplanes. When finalized, the order will become China’s largest-ever purchase by an airline for single-aisle airplanes, worth more than $8 billion at current list prices.
Copyright Photo: Manuel Negrerie/AirlinersGallery.com. Boeing 737-86N B-5683 (msn 39400) in the special “Yunnan Peacock” color scheme arrives at Taipei (TPE).
Air Serbia (formerly Jat Airways) (Belgrade) will now extend the date of the retirement date of its Jat Airways-painted Boeing 737-300s to October 24, 2014 according to Airline Route. The last routes will be to Dusseldorf, Frankfurt and Podgorica. Air Serbia is replacing the older Boeing 737s with newer Airbus A319s and A320s.
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-3H9 YU-AND (msn 23329) arrives in Zurich.
Jet2 (Jet2.com) (Leeds/Bradford) will open two weekly winter seasonal routes from December 20, 2014 through April 11, 2015 per Airline Route; Edinburgh-Geneva and Manchester-Turin (both ski destinations).
Copyright Photo: Paul Denton/AirlinersGallery.com. Boeing 737-377 G-CELZ (msn 23658) taxies at Geneva to the runway.
Alaska Airlines (Seattle/Tacoma) yesterday (June 12) inaugurated round-trip service between Seattle/Tacoma and New Orleans.
The New Orleans service contributes to a plan to increase Alaska Airlines departures out of Seattle/Tacoma 11 percent by next spring. Alaska’s daily flights from Seattle-Tacoma International Airport will increase from 253 to 280, giving travelers more options to the places they want to fly most.
Other previously announced new service includes Albuquerque, New Mexico, Baltimore, Detroit, Tampa, Florida, and Cancún, Mexico.
Summary of other new daily Seattle/Tacoma service:
• Seattle – Tampa: starting June 20
• Seattle – Baltimore/Washington: starting September 2
• Seattle – Detroit: starting September 4
• Seattle – Albuquerque: starting September 18
• Seattle – Cancún: starting November 6 pending governmental approval
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-890 N560AS (msn 35179) in the special “Spirit of the Islands” motif taxies to the runway at the Seattle-Tacoma International Airport (SEA) hub.
Video: One summer at Alaska Airlines:
Transat A.T. Inc., (parent of Air Transat) (Montreal) posted revenues of $1.1 billion for the quarter ended April 30, 2014, an increase of 1% compared with the same period in 2013.
The Corporation recorded an adjusted operating loss of $4.0 million (all dollar figures are in Canadian dollars), compared with an adjusted operating profit of $2.7 million in 2013, and a net loss of $7.9 million ($0.20 per share on a diluted basis), compared with a net loss of $22.8 million ($0.59 per share on a diluted basis) in 2013. The decline in value of the Canadian dollar alone resulted in an increase in operating expenses of $22 million. Before non-operating items, Transat reported an adjusted net loss3 of $7.6 million in 2014 ($0.19 per share on a diluted basis), compared with an adjusted net loss of $1.4 million ($0.04 per share on a diluted basis) in 2013.
Here is the full report:
“Our results for the quarter and the winter are slightly better than what we anticipated in March,” commented Jean-Marc Eustache, President and Chief Executive Officer, before adding: “It was a peculiar winter. In December, margins were higher year over year and we were heading toward a performance improvement. The sudden drop in value of the Canadian dollar provoked a significant increase in operating expenses that reversed the situation, as it came early in the season, when the market resists increases in selling prices.”
The Corporation posted revenues of $1.1 billion, an increase of 1% compared with 2013, and an adjusted operating loss1 of $4.0 million, compared with an adjusted operating profit of $2.7 million in 2013. During the quarter, Transat had reduced capacity on its Sun destination routes by 3.5%, which contributed to a 5.3% overall decrease in the number of travellers. Average selling prices were up, and the euro and pound traded higher against the Canadian dollar. The adjusted operating loss is attributable entirely to the decline in value of the Canadian dollar against the U.S. dollar.
Revenues of North American business units, which are generated by sales in Canada and abroad, decreased by $4.0 million (0.4%) compared with the same period in 2013. The decline in revenues stemmed from the Corporation’s decision to reduce supply on its Sun destination routes by 3.5%, and on its transatlantic routes by 2.9%, leading to a decrease of 5.9% in the number of travellers, while average selling prices rose. North American business units recorded an operating loss of $15.7 million, compared with one of $7.3 million in 2013. The increase in operating loss is attributable entirely to the decline in value of the Canadian dollar versus the U.S. dollar, and the accompanying increase in operating expenses. The combined effect of increased selling prices plus cost-control initiatives was not sufficient to offset the effect of those expense increases. The operating loss for the quarter includes a $2.2-million restructuring charge, compared with $3.9 million in 2013.
Revenues of European business units, which are generated by sales in Europe and in Canada, increased by $15.8 million (9.7%) over 2013, owing to the strength of the euro and pound against the Canadian dollar. Measured in local currencies, the revenues of the France business unit increased, while those of the U.K. unit decreased following the Corporation’s decision to reduce capacity. European activities resulted in an operating loss of $1.4 million, compared with $2.8 million in 2013.
First six-month period highlights
For the first six months, the Corporation posted revenues of $2.0 billion in 2014, compared with $1.9 billion in 2013, and an adjusted operating loss1 of $27.8 million, compared with $18.3 million in 2013. During the six-month period, the Corporation reduced capacity on certain markets, resulting in a 3.6% overall decrease in the number of travellers. Capacity on Sun destination routes, meanwhile, was similar to that in 2013. Average selling prices were up, and the euro and pound traded higher against the Canadian dollar. The adjusted operating loss is attributable entirely to the decline in value of the Canadian dollar versus the U.S. dollar.
Revenues of North American business units increased by $27.5 million (1.7%) compared with the same period in 2013. For the six-month period, capacity on Sun destination routes was similar to that of 2013, while transatlantic market capacity was reduced by 6.2%. North American business units recorded an adjusted operating loss1 of $40.7 million, compared with $23.6 million in 2013. The operating loss is attributable entirely to the Corporation’s increased costs following the depreciation of the Canadian dollar against its U.S. counterpart. The operating loss for the six-month period includes a $2.2-million restructuring charge, compared with $3.9 million in 2013.
Revenues of the European business units increased by $25.8 million (9.3%) from 2013, owing to the strength of the euro and pound against the Canadian dollar. Measured in local currencies, these business units’ revenues declined slightly, following the decision to reduce capacity. European activities resulted in an operating loss of $9.9 million, compared with one of $16.5 million for the first six months of 2013.
As at April 30, 2014, the Corporation’s free cash totalled $404.6 million, compared with $336.1 million at the same date in 2013. The working capital ratio was 1.04, against 0.98, and deposits from customers for future travel amounted to $540.3 million, compared with $514.7 million a year earlier. Off-balance-sheet agreements stood at $648.6 million as at April 30, 2014, compared with $655.8 million as at October 31, 2013,4 the decrease being attributable to payments made during the period, offset by the increase resulting from the depreciation of the Canadian dollar against the U.S. dollar.
The transatlantic market outbound from Canada and Europe accounts for a very significant portion of Transat’s business in the summer. For the period May to October 2014, Transat’s capacity on that market is lower by 1% than that for summer 2013. To date, 65% of that capacity has been sold. Load factors are 2.4% lower and selling prices of bookings taken are approximately 4.3% higher, compared with the same date in 2013. If the Canadian dollar remains at its current value against the U.S. dollar, the euro and the pound, this will result in an increase in operating expenses of 4.4%.
On the Sun destinations market outbound from Canada, Transat’s capacity is higher by 9% than that for the previous year. To date, 49% of that capacity has been sold, load factors are 1% lower, and selling prices are higher.
In France, compared with last year at the same date, medium-haul bookings are ahead by 24%, while long-haul bookings are at a similar level. Variations in the product mix have resulted in a lower average selling price, with no negative impact on the average margin.
To the extent the aforementioned trends hold, the Corporation expects to record satisfying results in the second half, though lower than the record results posted last year.
Cost-reduction and margin-improvement initiatives
The Corporation continues implementing its initiatives to reduce operating costs, improve margins, and make changes to its systems and processes. In April 2013, Transat announced its decision to internalize narrow-body medium-haul aircraft (Boeing 737-800s) for travel outbound from Canada, starting in May 2014. These measures had, as expected, a favorable impact of $20 million on the margin in 2012 and one of $15 million in 2013. The Corporation expects another $20 million in 2014, as well as in 2015, when internalization of the narrow-body fleet will produce its full benefits.
Copyright Photo: TMK Photography/AirlinersGallery.com. In April 2013, Transat announced its decision to internalize narrow-body medium-haul aircraft (Boeing 737-800s) for travel outbound from Canada, starting in May 2014. Formerly operated by Ryanair as EI-CSH, CanJet Airlines’ Boeing 737-8AS C-FTCZ (msn 29923) is pictured operating as Air Transat in their new 2011 colors.