Tag Archives: Boeing 747-800F

Silk Way West Airlines and Boeing to finalize the purchase of three 747-8 freighters

Silk Way West Airlines (Silkway Azerbaijan Cargo) (formerly Silk Way Airlines) (Baku) and Boeing (Chicago, Seattle and Charleston) have announced that the two companies are finalizing terms and working toward a purchase agreement for three 747-8 Freighter airplanes.

When finalized, the contract will be valued at more than $1.1 billion at current list prices. The order will be posted on Boeing’s Orders & Deliveries website once all contingencies are cleared.

Silk Way West Airlines is an enterprise of the Silk Way Group, which includes 23 companies working in the aviation industry and related services. The airline currently operates seven Boeing airplanes, including two 767-300 Freighters, three 747-400 Freighters and two 747-8 Freighters.

Silk Way Airlines became Silk Way West Airlines on July 1, 2012.

Top Copyright Photo: Royal S. King/AirlinersGallery.com (all others below by Silk Way West Airlines). Boeing 747-83QF VQ-BVC (4K-SW882) (msn 44937) prepares to land at Paine Field. This freighter was delivered on August 29, 2014.

Silkway Azerbaijan Cargo 747-800F VQ-BVC (10)(Title) PAE (Silk Way)(LRW)

Silkway Azerbaijan Cargo 747-800F VQ-BVC (10)(Tail) PAE (Silk Way)(LRW)

Silkway Azerbaijan Cargo 747-800F VQ-BVB (10)(Grd) PAE (Silk Way)(LRW)

Silk Way West Airlines aircraft slide show:

Silk Way West logo (LRW)

Route Map:

Silk Way West 1.2015 Route Map

 

 

 

Silk Way Airlines takes delivery of its first two Boeing 747-800F freighters

Boeing (Chicago and Seattle) and Silk Way Airlines (Baku, Azerbaijan) today (August 28) celebrated the delivery of the airline’s two 747-83QF freighters. The first airplane (4K-SW881, msn 44444) was delivered last week and the second airplane (4K-SW882, msn 44937) was delivered today (August 28).

To date, Boeing has delivered 49 747-8 Freighters.

Copyright Photo: Royal S. King/AirlinersGallery.com. Boeing 747-83QF VQ-BVC (4K-SW882) lands after a test flight at Paine Field near Everett, WA.

Silk Way Airlines: AG Slide Show

Atlas Air Worldwide Holdings reports 2Q adjusted net income of $15.9 million

Atlas Air Worldwide Holdings (Atlas Air and Polar Air Cargo) (New York) reported adjusted net income of $15.9 million for the second quarter.

The company issued this statement:

Atlas Air Worldwide Holdings, Inc., a leading global provider of outsourced aircraft and aviation operating services, announced adjusted net income attributable to common stockholders of $15.9 million, or $0.63 per diluted share, for the three months ended June 30, 2014, compared with $20.4 million, or $0.79 per diluted share, for the three months ended June 30, 2013.

On a reported basis, net income attributable to common stockholders in the second quarter of 2014 totaled $29.6 million, or $1.17 per diluted share, compared with $20.1 million, or $0.78 per diluted share, in the year-ago quarter.

“We are off to a good start in 2014. Airfreight demand is improving, and we are encouraged about our full-year outlook,” said William J. Flynn, President and Chief Executive Officer. “As we continue to gather additional insight into second-half yields, demand and military requirements, we are maintaining our full-year earnings framework.”

Mr. Flynn added: “Atlas is an entrepreneurial company. Our second-quarter results illustrate the positive contributions being generated by the investments we’ve made and the initiatives we’ve undertaken. In the face of an uncertain airfreight market and an anticipated decline in military cargo demand, we have diversified our business mix and are driving business resilience.

“Results within our ACMI segment are benefiting from modern 747-8 freighters as well as an increase in flying for our CMI customers. In Dry Leasing, the investments we’ve made since early 2013 in attractive 777 freighters on long-term leases with strong customers are driving a significant increase in contribution from highly predictable revenue and earnings streams.

“In addition, the expansion of our 767 platform and our growth into military and commercial passenger charter operations are providing added strength, complementing the improvement in airfreight demand.

“Led by the strength of our brand, our global market leadership in outsourced aircraft assets and services, and our ability to work closely with our customers as they enhance their route networks and grow their businesses, we are well-positioned to take advantage of market opportunities and improvement – and to continue our focus on longer-term business growth.”

Adjusted earnings in the second quarter of 2014 exclude an income tax benefit of $24.0 million, or $0.95 per diluted share, due to beneficial tax planning related to the tax treatment of extraterritorial income. This was partly offset by a noncash loss of $9.4 million after tax, or $0.37 per diluted share, resulting from the trade-in of used spare engines for new engines under the company’s engine-acquisition program, as well as additional charges totaling $1.0 million after tax, or $0.04 per diluted share, which were primarily related to the company’s U.K. affiliate, Global Supply Systems Limited.

Adjusted earnings in the second quarter of 2013 exclude an after-tax loss of $0.6 million, or $0.02 per diluted share, on the early extinguishment of debt, partly offset by an after-tax gain of $0.3 million, or $0.01 per diluted share, on the disposal of aircraft.

Second-Quarter Results

Profitability in our ACMI business during the second quarter reflected an increase in 747-8F revenue and an increase in CMI flying, offset by higher maintenance expense for aircraft operating in this segment.

ACMI revenues benefited from an increase in our average rate per block hour driven by our 747-8Fs, but were impacted by a decline in block-hour volumes related to the return of three 8Fs from British Airways in April and early May. This decline was partially offset by the placement of two of the 8Fs with DHL Express in May, the start-up of ACMI 8F flying for BST Logistics in February 2014 and Etihad in May 2013, as well as the start-up of ACMI 747-400 flying for Astral Aviation in September 2013. Block-hour volumes during the second quarter also reflected an increase in CMI Dreamlifter flying for Boeing and the initiation of CMI 767-200 passenger aircraft service for MLW Air during the third quarter of 2013.

In Dry Leasing, revenue and profitability grew following the addition of three 777F aircraft in January 2014 and two in July 2013, which raised our 777F fleet count to six. Each of these aircraft are leased to customers on a long-term basis.

In AMC Charter, results benefited from an increase in the volume of passenger flying on higher-yielding 747-400 aircraft, partially offset by a decrease in demand for cargo flying. Segment results in Commercial Charter reflected a decrease in market rates and increases in maintenance and crewmember travel expense, partially offset by an increase in block-hour volumes.

Reported earnings for the period reflected an effective income tax rate benefit of 461.0%, driven by tax-planning efforts regarding a federal income tax benefit related to the treatment of extraterritorial income from the offshore leasing of certain of our aircraft.

Half-Year Results

For the six months ended June 30, 2014, adjusted net income attributable to common stockholders totaled $27.3 million, or $1.08 per diluted share, compared with $26.3 million, or $1.01 per diluted share, for the six months ended June 30, 2013.

On a reported basis, first-half 2014 net income attributable to common stockholders totaled $37.5 million, or $1.49 per diluted share, compared with $40.1 million, or $1.54 per diluted share, in the first half of 2013.

Cash and Short-Term Investments

At June 30, 2014, our cash, cash equivalents, short-term investments and restricted cash totaled $299.2 million, compared with $339.2 million at December 31, 2013.

The change in position reflected cash provided by operating and financing activities offset by cash used for investing activities.

Net cash used for investing activities during the first half of 2014 primarily related to the purchase of three 777F aircraft for our Dry Leasing business.

Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.

Outlook

We are encouraged by our performance in the first half of 2014 and the positive direction of market trends so far this year.

Airfreight volumes continue to improve, and recent forecasts suggest that airfreight demand may grow by several percentage points in 2014 – the first real growth after three essentially flat years. Airfreight yields continue to lag behind, however, and there is still limited visibility into peak-season yields, demand and second-half military requirements. As a result, we are maintaining our earnings outlook for the full year.

On a sequential basis, per-share earnings in the third quarter of this year should improve over our adjusted second-quarter results by an increment similar to the increase between our first- and second-quarter adjusted earnings.

For the full year, we expect total block hours to be comparable to 2013, with more than 70% in ACMI, approximately 10% in AMC Charter, and the balance in Commercial Charter. Our Dry Leasing segment should show dramatic growth compared with 2013. While our share of military flying, mainly in passenger service, has increased due to a reduction in the number of carriers serving the market and our ability to capitalize on additional flying opportunities, we continue to expect an overall decline in military demand, primarily in cargo, compared with 2013.

We also expect aircraft maintenance expense to total approximately $180 million in 2014, with depreciation of approximately $120 to $125 million. Core capital expenditures this year are expected to total approximately $45 to $50 million, mainly for spare parts for our expanded fleet.

We remain confident in the resilience of our business model, as well as our ability to adapt to the market and to leverage the scale and efficiencies in our operations. The business initiatives we have undertaken and the investments we have made have enabled the company to deliver meaningful earnings in any environment.

Should 2014 be the inflection point when growth returns to commercial airfreight and yields improve, our business initiatives and the investments we have made have positioned Atlas to be one of the prime beneficiaries.

Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Through Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-87UF N852GT (msn 37571) of Atlas Air taxies at Anchorage, AK.

Atlas Air: AG Slide Show

Polar Air Cargo: AG Slide Show

AirBridgeCargo Airlines is coming to Munich on May 9

AirBridgeCargo Airlines-ABC (Moscow-Sheremetyevo), the largest Russian scheduled cargo airline and part of Volga Dnepr Group, is further expanding its services in Central Europe by introducing direct services to/from Munich with a Boeing 747 freighter on May 9.

The new Munich flight to Moscow’s Sheremetyevo Airport will be in addition to the existing 4 weekly Boeing 737 flights operated by Atran Cargo Airlines, also part of Volga Dnepr Group. ABC Boeing 747 all-cargo flight between the Bavarian capital and ABC hub in Moscow (Sheremetyevo) will be on Friday midday, providing ideal end of the week departure time for European customers.

Germany has always been one of the most important markets contributing to ABC’s growth over the last decade. Earlier this year ABC launched scheduled Boeing 747 services to and from Leipzig, extending the Group’s strong association with the airport, where it has invested in a modern aircraft maintenance and repair facility to serve a variety of aircraft types (Boeing 747-200/300/400/8 (CF-50/80, PW4000), Boeing 737CL).

AirBridgeCargo’s scheduled network covers major markets in Asia (China, Japan and Korea), Europe (the Netherlands, France, Germany, Italy, Spain and Sweden) and North America (Chicago, Dallas).

The airline’s fleet is one of the youngest in the industry and includes 12 Boeing 747s: four Boeing 747-400ERFs, three Boeing 747-400Fs and five brand new Boeing 747-8Fs. The average fleet age is about 4 years.

Copyright Photo: Arnd Wolf/AirlinersGallery.com. Boeing 747-8HVF VQ-BLR (msn 37668) taxies at Amsterdam’s Schiphol Airport (AMS).

AirBridgeCargo Aircraft Slide Show: CLICK HERE

Routes to Europe:

AirBridgeCargo 5.2014 European Route Map

Cargolux improves with a net profit of $8.4 million in 2013

Cargolux Airlines International (Luxembourg) at its annual general meeting, the shareholders of Cargolux Airlines International S.A. approved the audited financial statements for the financial year ended on December 31, 2013.

2013 Highlights

Cargolux earned a full year net profit of US$ 8.4 million compared to US$ 35.1 million net loss in 2012;

Total revenues rose 14.4% to US$ 1,988.5 million from US$ 1,738.9 million in 2012.
Key Performance Indicators:

Tons sold increased 16.7% to 753,848 from 645,759 in 2012;

Average load factor softened 0.9 percentage points to 67.7%;

FTK strengthened to 5.7 million compared to 4.8 million in 2012;

Daily aircraft utilization stood at 14:57 block hours versus 15:07 in 2012.

In spite of a moderate recovery in the last quarter, the airfreight industry continued to operate in a difficult environment for the most part of 2013. Capacity growth still outstripped demand, which resulted in an industry-wide decline in yields and load factors. Despite difficult trading conditions, Cargolux grew its activities and increased volumes in a bid to maximize contribution to fixed costs. This was achieved quite successfully, as the company recorded a tonnage growth of 16.7% over 2012 to 753,848 tons – exceeding the 2013 budget by 13.5%. Total revenues grew by 14.4% to $1,988.5 million (US) while tons-kilometers flown increased from 4.8 million in 2012 to 5.7 million in 2013.

Cargolux operated 95,022 block hours, 13,364 hours more than planned for 2013. The high amount of operational activity contributed towards achieving a net consolidated gain of $8.4 million (US), a noteworthy improvement over the originally budgeted loss for 2013 of $27.1 million (US).

Cargolux expanded its fleet with three new Boeing 747-8Fs and retained, on a power-by-the-hour basis, a Boeing 747-400F that was initially planned to exit the fleet during 2013. It also added a Boeing 747-400ERF on the same basis, which brought the fleet to 20 aircraft at the end of the year. In contrast, the budget for 2013 foresaw a fleet of 16 aircraft only.

With a bigger fleet and more operational activity than planned, Cargolux recorded an average daily aircraft utilization of 14:57 hours. The company’s market share reached 3.5% and it ranked at number 8 among the world’s dedicated freighter and combination carriers in terms of FTKs.

“We don’t expect market conditions to improve significantly in 2014,” said Cargolux President and CEO Dirk Reich. “Our priority is to grow and expand our global network with the continued support and valuable contribution of our hard working employees while focusing on efficiency and performance improvements. I am also confident in our ability to reap the first tangible rewards from the cooperation with our new shareholder HNCA”, Reich added.

Copyright Photo: Karl Cornil/AirlinersGallery.com. Boeing 747-8R7F LX-VCG (msn 35812) taxies past the camera at Amsterdam.

Cargolux Aircraft Slide Show: CLICK HERE

Cargolux orders an additional Boeing 747-8 Freighter

Cargolux Airlines International (Luxembourg) and Boeing (Chicago and Seattle) have announced an order for an additional 747-8 Freighter. The order, valued at $357.5 million at list prices, is the 14th 747-8 Freighter the cargo carrier has ordered from Boeing.

“The Cargolux Board of Directors approved the order of our 14th 747-8 Freighter almost 35 years to the day that the airline took delivery of its first 747 Freighter ever,” said Richard Forson, interim president and CEO of Cargolux. “This shows how pleased we, as an all-747 cargo operator, are with the performance and economics of this new generation aircraft and underlines the importance of the role of the 747 overall in the success of our company.”

Cargolux was the world’s first operator of the 747-8 Freighter, taking its first delivery of the airplane type in October 2011. Since then, the airline has taken a total of nine 747-8 Freighters, providing the carrier with increased cargo capacity coupled with excellent economic performance. With today’s announcement, Cargolux has a total of five unfilled orders for 747-8 Freighters.

As well as being one of the launch customers for the 747-8 Freighter, Cargolux also took delivery of the first ever 747-400 Freighter in November 1993. The all-Boeing carrier has a fleet comprised entirely of 747-400 Freighters and 747-8 Freighters.

Copyright Photo: Arnd Wolf/AirlinersGallery.com. Boeing 747-8R7F LX-VCD (msn 35809) taxies at Munich.

Cargolux: AG Slide Show

AirBridgeCargo add its fifth Boeing 747-8 freighter, reports its growth in 2013

AirBridgeCargo-ABC (Moscow), part of Volga-Dnepr Group and Russia’s largest cargo airline, recently celebrated the delivery of the airline’s fifth 747-8 Freighter (VQ-BRJ, msn 37670) on December 27, 2013.

With delivery of the fifth 747-8 Freighter, AirBridgeCargo continues to follow its long-term fleet modernization strategy to further improve the quality of its product. The new aircraft will be used on ABC’s existing route network linking Europe, Asia and the United States via the airline’s hub in Moscow.

At present AirBridgeCargo’s fleet consists of 12 Boeing 747s, including five Boeing 747-400ERFs (Extended Range Freighters), three Boeing 747-400 Freighters and five Boeing 747-8 Freighters.

The carrier achieved a 5% growth in cargo tonnage in 2013, with its highest ever volume of 340,000 tons across its network linking Europe, Russia, Asia and North America.

The airline reported volume growth on all of its major routes and this was matched by a 5% improvement in revenue. AirBridgeCargo’s Freight Ton-Kilometers (FTK) rose 15% in 2013, while its average load factor of 72% show a marginal 1.7% gain over the previous year.

Despite challenging market conditions in 2013, ABC continued with its long-term fleet modernisation strategy and took delivery of two more new generation freighters Boeing 747-8F. With the delivery of its fifth Boeing 747-8F in December 2013, AirBridgeCargo  completed its fleet renewal plan which began two years ago. This investment has reduced the average age of its aircraft fleet from nine years at the end of 2011 to three years at the end of 2013. At present, ABC’s fleet is one of the youngest in the air cargo industry.

AirBridgeCargo took delivery of its first Boeing 747-8F (VQ-BLQ) (see above) in January 2012, with the second and third aircraft joining its fleet in March and December 2012. The fourth new generation freighter entered service with ABC in September last year. As part of the modernization program, ABC removed four older aircraft from its fleet; two Boeing 747-200F, one Boeing 747-300F and a Boeing 747-400ERF. A further 747-400ERF will leave its fleet in 2014.

In 2013, AirBridgeCargo joined the Olympic movement with the delivery of 126 tons of broadcasting equipment as well as 214 tons of sports and lighting equipment for the 2014 Winter Olympics taking place in the Russia City of Sochi in February. The flights were performed using Boeing 747 and Boeing 737 cargo aircraft.

Copyright Photo: Bernhard Ross/AirlinersGallery.com. The first, Boeing 747-8HVF VQ-BLQ (msn 37581) taxies at Frankfurt.

AirBridgeCargo Airlines: AG Slide Show