Sunrise Airlines (Sarasota/Bradenton) is the proposed paper airline of Stephen Miller and his wife Hannah. The residents of Sarasota, Florida still hope to raise $30 million to launch a new airline with an initial fleet of four Boeing 737-400s. Stephen Miller is a former executive of Oasis Hong Kong Airlines (Hong Kong). The couple recently gave an update to the Airport Authority Board on its business plan.
The proposed first phase would launch nonstop routes from Sarasota/Bradenton (SRQ) to Philadelphia, Indianapolis, Baltimore/Washington , Detroit, Boston, Pittsburgh, Chicago (Midway) and Newark.
Meanwhile departures at SRQ have declined by 38 percent in the past six years. Continental Airlines (now United Airlines) and AirTran Airways (now owned by Southwest Airlines) dropped SRQ during this period.
This new paper airline should not be confused with Sunrise Airways of Haiti.
Read the full article from Bradenton.com: CLICK HERE
Copyright Photo: Antony J. Best. The proposed tail design of Sunrise Airlines borrows on the colorful livery of Oasis Hong Kong Airlines (below) which operated from 2006 to 2008.
Transaero Airlines (Moscow) has issued the following short statement concerning its financial performance during 2012.
Transaero Airlines has published its financial results under RAS for 2012 which demonstrate the Company’s growth.
• Revenue from all activities in 2012 reached RUB 97.6bln, 13% more than in 2011
• Traffic revenue from in 2012 made up RUB 90.3bln, a 35% increase on 2011
• Revenue from asset transactions decreased by 64% and reached RUB 6.8 bln
• The Company’s revenue grew faster than prime costs and expenses.
• Transaero’s sales revenue increased 2.9 times over 2011, to RUB 7 bln
Net profit reached RUB 902 million ($28.7 million), a 51% decrease over 2011. The Company’s profit was mainly ensured by revenues from the main carrier’s activities. Transaero has achieved these results amid a significant growth of air fuel price, social payment and taxes.
In other news, the Russian airline added twice-weekly Boeing 737-500 service from St. Petersburg to Kaliningrad on May 12 in competition against Rossiya Airlines per Anna Aero.
Kaliningrad is a seaport city and the administrative capital of the Kaliningrad Oblast, the Russian exclave located between Poland and Lithuania on the Baltic Sea. This enclave is geographically separated from the rest of Russia.
Copyright Photo: Andi Hiltl/AirlinersGallery.com. Boeing 747-446 EI-XLD (msn 26360) approaches the Turkish resort destination of Antalya.
Jumbo Stay (Jumbo Hostel) (Stockholm) is now offering the opportunity to stay and now dine on the wing of a Boeing 747 based at Stockholm’s Arlanda Airport. The company is now advertising the following:
“Jumbo Stay is not just a hostel, its also an exciting place to go on an excursion for the whole family and for aviation enthusiasts. Non house guests are very welcome to have a look inside the airplane and to learn abouts its history. In our café you can purchase breakfast, coffee, cookies, ice cream, sandwiches and warm meals.
For the best view of the airplane and of the taxiway-runway, you will now have the possibility to walk along our left wing observation deck and experience the feeling of standing on top of a real Jumbo Jet’s wing.
Everybody is welcome to come and enjoy the view and to have a cup of coffee!”
The preserved Boeing 747-212B was originally delivered to Singapore Airlines as 9V-SQE (msn 21162) on March 30, 1976. However the airframe has also served with Pan Am (N727PA), Nationair (Canada) (C-FNXP), Garuda Indonesia, Cathay Pacific, Tower Air (N514DC and N620FF), Air Club International (C-GCIH), Transjet Airways (SE-RBN), Northeast Airlines (3D-NEE) and Jet Midwest (N981JM).
For more information: CLICK HERE
Copyright Photos: Stefan Sjogren. The Jumbo now carries advertising. Visitors can now have breakfast, lunch or even dinner on the wing of Jumbo Hostel at Stockholm Arlanda. You can see a fence on the wing is now protecting visitors from falling off the Boeing 747-212B.
Below is a view of the wing walking installation. Tables and chairs are provided on the wing!
In the front of the plane there is an elevator and stair case connecting to the main and upper decks of the Jumbo with the ground level.
Lufthansa Group (Lufthansa) (Frankfurt) reported its net loss for the first quarter widened to $602 million, up from a loss of $516.8 million in the same quarter a year ago. the first quarter is usually the weakest quarter for the carrier.
The airline issued this statement:
In the traditionally weak first quarter, Deutsche Lufthansa AG recorded an operating result on a par with last year at EUR -359m. The operating result includes restructuring costs of EUR 64m from the SCORE programme. Earnings improvements in the operating segments helped the Group make up for the extra costs. The net result for the period fell by 16.5 per cent to EUR -459m due to impairment losses and other valuations as of the reporting date. At EUR 6.6bn, revenue for the Lufthansa Group in the first quarter remained stable.
“We took another step towards our target of sustainable earnings improvements in the first quarter. Nearly all the Group companies improved their result,” explained Simone Menne, Member of the Executive Board, responsible for Finances and Aviation Services at Deutsche Lufthansa AG. “We are firmly on course with our SCORE programme.”
In operational terms, the Group improved its result by a total of EUR 95m in the Passenger Airline Group, Logistics, MRO, Catering and IT Services segments. Lufthansa German Airlines achieved the greatest improvement in the operating result, with an increase of EUR 77m. Thanks to a notable reduction in the number of flights and its optimised capacity management, the company boosted the load factor of its aircraft in the first quarter to 75.5 per cent and at the same time increased its yields. The strike by Lufthansa ground staff on 21 March depressed the operating result for Lufthansa German Airlines, as did high fuel costs and the long winter, which also weighed on the other airlines in the Lufthansa Group.
At the end of the first quarter 2013, Lufthansa German Airlines reported an operating loss of EUR 292m. At SWISS, the operating result came to EUR -16m, compared with EUR -3m in the same quarter last year. Austrian Airlines improved its operating result by EUR 11m to EUR -56m. Overall, the operating loss for the Passenger Airline Group segment improved to EUR -363m.
The Lufthansa Group also improved its operating result in the Logistics segment. Lufthansa Cargo increased its operating profit, in part thanks to targeted capacity management and lower depreciation and amortisation. At the end of the first quarter, the figure for the segment was EUR 27m, a rise of EUR 7m. The operating profit for the MRO segment was up by EUR 16m to EUR 81m. Lufthansa Technik adopted some 200 individual measures as part of SCORE in the first quarter, which by 2015 are intended to improve the organisation of administrative functions and align them better with customer needs. LSG SkyChefs improved its operating result by EUR 9m, posting an operating profit of EUR 3m for the period January to March. In the IT Services segment, Lufthansa Systems earned an operating profit of EUR 3m, compared with EUR 4m in the same quarter last year.
Given the improvement of the operating results for the Group companies in the first quarter, the positive contributions by SCORE and stable demand in the passenger business, the Group confirmed its earnings outlook for the year 2013. The operating profit for the Lufthansa Group in 2013 is predicted to be higher than the EUR 524m achieved last year. Positive earnings contributions from SCORE should not obscure the need for further change, however, emphasised Simone Menne, adding, “In competition with well-funded competitors, especially from the Middle East and Far East, and with low-cost airlines in Europe, we need new structures that will allow us to generate higher profits again. Putting the agreed measures into practice remains a challenge. We nevertheless intend to pursue our chosen path and shape our future with the required perseverance.”
The first quarter of 2013 in figures
Revenue for the Lufthansa Group in the first quarter of 2013 came to EUR 6.6bn – an increase of 0.1 per cent on the previous year. Traffic revenue declined by 0.2 per cent to EUR 5.3bn. Overall, the Group’s operating income went up to EUR 7.2bn in the reporting period, an increase of 0.3 per cent.
Operating expenses rose by 1.7 per cent in the first quarter to EUR 7.7bn. Fuel costs climbed by EUR 36m to EUR 1.7bn. This represents an increase of 2.2 per cent. Included in this amount is a negative contribution of EUR 25m from fuel hedging. Fees and charges fell by 2.2 per cent on the previous year, due to a lower number of flights.
In the first quarter, the Lufthansa Group reported an operating result on a par with the previous year of EUR -359m. To facilitate comparison, the operating result for the same quarter last year was adjusted by EUR 22m following the amendments to accounting standard IAS 19. Following this adjustment, the result for the first quarter of 2012 also came to EUR -359m.
The net result for the period was down by 16.5 per cent to EUR -459m. Expenses for severance pay and compensation as part of the SCORE job cuts depressed the Group’s result for the first quarter, as did impairment losses and valuation effects. Earnings per share sank to EUR -1.00.
Lufthansa invested EUR 718m in the reporting period. Of this sum, EUR 657m went on modernising and maintaining the fleet. Cash flow from operating activities came to EUR 976m and free cash flow (cash flow from operating activities less net capital expenditure) to EUR 463m. For the first quarter, the Group had net debt of EUR 1.7bn. Following the application of new accounting standards (IAS 19), the equity ratio is now 15.4 per cent.
|of which traffic revenue||€m||5,337||5,349||5,349||-0.2%|
|Result from operating
|Net profit/loss for the period||€m||-459||-394||-379||-16.5%|
|Cash flow from
|Employees as of 31.3.||116,516||120,898||120,898||-4,382|
|Earnings per share||€||-1.00||-0.86||-0.87||-0.14|
*) Operating result plus write-backs of provisions, divided by revenue
**) Previous year’s figures have been adjusted in line with changes to IAS 19
Copyright Photo: Brian McDonough. Lufthansa is gradually replacing its older Boeing 747-430s. D-ABTF (msn 24967) climbs gracefully away from Dulles International Airport near Washington, DC.
Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York-JFK) today announced adjusted net income attributable to common stockholders of $5.9 million, or $0.22 per diluted share for the first quarter of 2013 compared with adjusted earnings of $13.6 million, or $0.51 per diluted share, for the first quarter of 2012.
On a reported basis, net income attributable to common stockholders in the first quarter totaled $20.1 million, or $0.76 per diluted share, compared with $12.8 million, or $0.48 per diluted share in the year-ago quarter.
Adjusted earnings in the first quarter of 2013 exclude an income tax benefit of $14.2 million, or $0.54 per diluted share, related to the tax treatment of extraterritorial income from the offshore leasing of certain aircraft. Adjusted earnings in the first quarter of 2012 exclude fleet retirement costs of $0.9 million, or $0.03 per diluted share.
First-quarter revenue grew 5% to $377.3 million, with operating income increasing 10% to $22.6 million and operating margin expanding slightly. Free cash flow for the period totaled $42.4 million compared with $1.0 million in the first quarter of 2012.
“Our first-quarter results and initiatives demonstrate the benefits of a modern, efficient fleet, diversified business mix and solid balance sheet in a challenging business environment,” said William J. Flynn, President and Chief Executive Officer.
“Operating income during the quarter reflected the strength of our ACMI operations, especially our new 747-8 freighters. It also gained from new organizational capabilities and the evolution of our business, such as our expanding 767 service and growing CMI operations. We also realized operating efficiencies through our continuous improvement initiatives.
“Capitalizing on our financial strength, we acquired an immediately profitable 777 freighter under long-term customer lease for our Dry Leasing business. We also implemented an immediately accretive share repurchase program that acquired 3.4% of our outstanding stock for a total of $36.5 million through late April.
“Earnings in the first quarter were in line with our expectations and our outlook for the year. As a result, we are affirming previous guidance for 2013 but we are raising our expected adjusted earnings per share to $4.80 from $4.65 to reflect our actual and anticipated share repurchases.”
Revenue, volume and profitability growth in our core ACMI business during the first quarter were driven by our new 747-8Fs, with four additional -8F aircraft in service compared with the first quarter of 2012, as well as the continued ramp up of CMI flying for Boeing and DHL Express.
Improved ACMI segment earnings during the period also benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments.
In AMC Charter, strong growth in passenger service volumes partially offset a 41% reduction in cargo block hours, a reduction in the number of one-way AMC missions, and lower average cargo revenue per block hour, which led to a decline in segment contribution. Lower average passenger revenue per block hour during the period stemmed from an increase in flying on smaller-gauge 767 aircraft added to supplement our wide-body 747-400 passenger service and enhance our share of military passenger business.
Segment results in Commercial Charter reflected the seasonal nature of this business and were primarily related to a reduction in yields driven by soft first-quarter global charter-market conditions.
Results in the first quarter were also affected by higher non-operating expenses, primarily due to a reduction in capitalized interest on 747-8F aircraft that entered service.
Reported earnings for the first quarter of 2013 included an effective income tax rate benefit of 97.4%, reflecting a federal income tax benefit of $14.2 million related to the tax treatment of extraterritorial income from the offshore leasing of certain of our aircraft.
Cash, Cash Equivalents and Short-Term Investments
At March 31, 2013, our cash, cash equivalents and short-term investments totaled $343.9 million, compared with $419.9 million at December 31, 2012.
The change in cash, cash equivalents and short-term investments was primarily driven by an increase in cash provided by operating and financing activities, offset by cash used for investing activities.
Net cash used for investing activities in the first quarter of 2013 primarily related to the purchase of a 747-8F aircraft for our ACMI operations and a 777-200 LRF 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. These proceeds were partially offset by payments on debt obligations and a prepayment under an accelerated share repurchase program agreement (“ASR”).
Share Repurchase Activity
Between mid-February and late April 2013, we repurchased 903,301 shares of our common stock for $36.5 million at an average cost of $40.40 per share. The shares were acquired pursuant to an ASR with an investment bank that settled on April 25, 2013.
We acquired 427,168 of these shares during the period ended March 31, 2013, which added $0.01 per diluted share to our adjusted and reported earnings for the first quarter.
Future repurchases may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.
We expect to generate strong earnings and cash flow in 2013. Led by ACMI, each of our business segments is expected to be profitable for the year.
Incorporating our share repurchase activity, we anticipate that our adjusted fully diluted earnings per share this year will total approximately $4.80, an increase from prior guidance of approximately $4.65. Including the extraterritorial income tax benefit of $0.54 per share, our reported fully diluted earnings per share in 2013 should be approximately $5.34.
Both adjusted and reported full-year 2013 EPS guidance assume the repurchase of $50.0 million of our outstanding stock during the year.
Our expectation for full year 2013 operating performance is unchanged from the outlook we issued last quarter. We now expect to fly fewer block hours in our Commercial Charter segment in 2013 than we previously forecast. We also expect lower operating expenses as a result of continuous improvement initiatives that drive productivity improvements and operating efficiencies. These initiatives target all aspects of our business, including engine overhauls, procurement efforts, passenger catering, ground travel, and crew scheduling.
Similar to the first quarter, adjusted and reported full-year earnings in 2013 will reflect strong growth from the company’s 747-8Fs in ACMI, driven by an increase in the number of -8F aircraft in ACMI service compared with 2012, including the incremental placement with Etihad Airways we announced today.
Market growth during 2013 should be seasonal and second-half weighted. We continue to anticipate a sequential increase in our quarterly earnings throughout the year, with approximately 75% of adjusted earnings per share and 66% of reported earnings per share occurring in the second half.
Based on our revised view, block-hour volumes in 2013 are now expected to total approximately 175,000 hours. ACMI segment flying should account for about 135,000, or 77%, of expected 2013 block hours, with about 22,000, or 13%, in Commercial Charter and 18,000, or 10%, in AMC Charter. Passenger charter flying should account for more than 10,000 AMC Charter block hours in 2013.
Based on anticipated deliveries of 747-8Fs in our outstanding order, the average number of -8Fs in service in 2013 should increase to more than eight from 4.3 in 2012.
In addition, we now anticipate that maintenance expense will total approximately $172 million in 2013, about 60% of which should be incurred in the first half of the year.
Mr. Flynn concluded: “In an environment of continuing global uncertainty, we are well-positioned to serve our customers and the airfreight markets. We have performed well. We are ready to capitalize on market improvements. And we are executing a strategic plan that leverages our core competencies, provides a basis for returning capital to our investors through share repurchases, and will enable us to grow over the long term.”
In other news, Atlas Air has confirmed the placement of its eighth Boeing 747-8 Freighter into ACMI service.
The aircraft will fly on behalf of Etihad Cargo, the cargo arm of Etihad Airways, the national carrier of the United Arab Emirates, pursuant to a multi-year aircraft, crew, maintenance and insurance agreement that commences in May 2013.
The new contract between the companies follows a letter of intent announced on April 1, 2013, and complements an existing Boeing 747-400F ACMI arrangement between Atlas and Etihad. The aircraft will be operated in full Etihad Cargo livery.
Copyright Photo: Pedro Pics. Atlas Air operates this Boeing 747-87UF N850GT (msn 37570) for Panalpina Air and Ocean in their colors.
National Airlines (5th) (National Air Cargo) (Orlando) has issued this statement concerning the crash of flight NCR 102 at Bagram Air Base in Afghanistan on April 29. Flight NCR 102 was a cargo flight operated by National Airlines between Bagram and Al Maktoum Airport in Dubai. As we previously reported, the pictured former Air France Boeing 747-428 BCF N949CA (msn 35630) crashed on takeoff from Bagram, tragically killing all seven crew members on board. Media speculation has arisen because of the dramatic video (below) by Live Leak which shows the Jumbo Jet diving into the ground on takeoff.
“National Air Cargo will not speculate as to the cause of the accident involving National Flight NCR 102. With our full cooperation, an investigation by appropriate authorities is under way, and we encourage everyone to join us in respecting that process and allowing it to take its appropriate course.
Here are some facts regarding the aircraft and its movements prior to the accident:
- National Flight NCR 102 was en route to Dubai from Camp Bastian and had stopped to refuel at Bagram Air Base.
- The cargo contained within the aircraft was properly loaded and secured, and had passed all necessary inspections prior to departing Camp Bastian.
- The aircraft landed safely and uneventfully in Bagram.
- No additional cargo or personnel was added during the stop in Bagram, and the aircraft’s cargo was again inspected prior to departure.
National Airlines lost seven colleagues on April 29, 2013 in the crash at Bagram Air Base. All seven were dedicated aviation professionals and served National and our country well. The flight, NCR 102, was carrying military vehicles out of Afghanistan. The crewmembers on NCR 102 were Brad Hasler, Pilot in Command, Trenton MI; Jeremy Lipka, Pilot in Command, Brooklyn MI; Jamie Brokaw, First Officer, Monroe MI; Rinku Summan, First Officer, Canton MI; Michael Sheets, Loadmaster, Ypsilanti MI; Timothy Garrett, Maintenance, Louisville KY; Gary Stockdale, Maintenance, Romulus MI.”
Copyright Photo: Karl Cornil. N949CA is pictured arriving at Liège prior to tragic accident in 2012.
National Airlines’ Boeing 747-400 freighter N949CA crashes on takeoff in Afghanistan, 7 crew members killed
National Airlines’ (5th) (National Air Cargo) (Orlando) Boeing 747-428 BCF freighter registered as N949CA (msn 35630) crashed today (April 29) on takeoff at Bagram Air Force Base in Afghanistan. All seven crew members are believed to have perished in the fiery crash.
The Taliban claimed to have shot down the freighter but coalition forces dismissed the claim.
The airline issued this statement:
A National Airlines Boeing 747-400 cargo plane was involved in an accident at Bagram Airbase in Afghanistan on April 29.
At approximately 7 a.m. EDT, National Flight NCR 102 from Bagram to Dubai, UAE, with seven crewmembers on board crashed on takeoff. None of the crew members survived. This was a purely cargo flight and no passengers were aboard. Cargo consisted of vehicles and routine general cargo.
“Safety is always our top priority at National Airlines,” said National Airlines President Glen Joerger. “This is a devastating loss for our family and we’ll work diligently with authorities to find the cause,” said Joerger. “Most importantly, our thoughts and prayers are with our crew members and their families.”
National will release additional information as it becomes available, in cooperation with government authorities. Our focus at this time is on the family members of those we’ve lost, and on assisting the NTSB and Afghanistan Civil Aviation Authority in their investigations. As of now, the cause of the accident is unknown.
Read the full report from the Wall Street Journal: CLICK HERE
Actual video of the crash from Live Leak:
Copyright Photo: Ton Jochems. Ill-fated N949CA taxies at Amsterdam before the accident. The airframe previously flew for Air France.
Cargolux Airlines International (Luxembourg) issued its financial statement for 2012:
At the April 24 annual General Meeting, the shareholders of Cargolux Airlines International S.A. approved the audited Financial Statements for the financial year ended December 31, 2012.
The steep decline in air cargo markets at the end of 2011 continued into 2012 not only for Cargolux, but for the industry as a whole. Depressed demand coupled with continued overcapacity resulted in significant pressure on yields and load factors for all freight operators.
Despite an improvement in late 2012, Cargolux recorded an overall loss of $35.1 million on revenues of $1,738.9 million. This loss, however, is markedly lower than the $57.0 million loss budgeted by the airline for the 2012. With the improvement in demand experienced in the last quarter of 2012 and the positive volume growth experienced by the airline for the first quarter of 2013 versus 2012, Cargolux remains cautiously optimistic for the current year. ‘Considering the state of the industry and the economic difficulties worldwide, Cargolux fared better than anticipated in 2012, that gives me hope for the current year,’ said Paul Helminger, Chairman of the Board of Directors.
In 2012, Cargolux carried 645,759 tons of cargo on its worldwide network. The fleet consisted of a mix of Boeing 747-400 and 747-8 freighters. With the new 747-8F gradually replacing the 747-400F, the airline operated eleven 747-400F and six 747-8F at the end of December 2012. Four Boeing 747-8 freighters joined the fleet during the year and additional deliveries are expected in 2013. In total, Cargolux will receive 13 units of the advanced freighter.
Cargolux has implemented a new business plan designed to ensure the long-term sustainability of the airline with a return to profitability in 2014.
Copyright Photo: Paul Denton. Boeing 747-8R7F LX-VCE (msn 35810) approaches Dubai International Airport (DXB) for landing.
British Airways (London) takes a look at what it takes to dispatch a Boeing 747-400 (soon expanded to an Airbus A380):
Ever wondered what it takes to get a jumbo jet off the ground? British Airways has created a picture of the iconic aircraft, using a jumbo number of items from the aircraft to show the scale of its operation.
From toilet rolls to teaspoons, British Airways loads thousands of individual items on to each jumbo jet before it takes to the skies. With a combined weight of 6,120 kg, the items have to be unloaded and re-loaded before every take-off.
On a typical jumbo jet, the following items are loaded:
1,263 items of metal cutlery
1,291 items of china crockery
538 meal trays
650 paper cups
34 metal teapots
220 drinks stirrers
2,000 ice cubes
99 full bottles and 326 quarter bottles of wine
700 small cans of fizzy drinks
164 bags of nuts in Club World
337 cushions and pillows
337 sets of headphones
337 headrest covers
435 air sickness bags
58 toilet rolls
40 extension seatbelts for children
340 safety cards
337 copies of High Life magazine
40 skyflyer packs for children
5 first aid kits
Employees from across the airline came together to create the image, which was drawn on to the floor of an aircraft hangar. Aspects of the photograph include:
- created using pillowcases, toilet roll, hand towels and napkins.
- created using Club World blankets and blue roll (kitchen roll.)
– created using pillowcases, cabin crew sleeping bags, First blankets, china, headrest covers, Skyflyer bags for children and headrest covers.
– created using bags of nuts.
– the red parts are created using headset bags and extension seatbelts for children.
London Eye (London skyline)
– created using a teapot, metal cutlery, china and socks.
The Shard (London skyline)
– created using tea and coffee bags.
The Gherkin (London skyline)
– created using First cushion covers and socks.
Tower Bridge (London skyline)
– created using First slippers and Club World washbags
Big Ben’s Tower (London skyline)
– created using air sickness bags, a plate and metal cutlery (clock face)
Buildings (London skyline)
– created using oven trays, glasses, safety cards, tongs and copies of High Life magazine.
Rod Green, British Airways’ head global supply chain said: “It’s a huge job getting a jumbo in to the air, let alone a fleet of 52 every day. There are teams across the airline working together 365 days a year to ensure that all 27,260 items are delivered on time and to the right place to ensure our customers enjoy the very best travel experience. When we receive our new aircraft, the challenge will be even greater.”
It’s been 42 years since the first British Airways (formerly BOAC) jumbo jet took to the skies and in July 2013 when it takes delivery of its first A380, the number of items loaded on to a plane will increase by approximately 10,000 to cater for two full decks of customers.
British Airways has 52 jumbo jet aircraft in its fleet.
Copyright Photo Below: Keith Burton/AirlinersGallery.com. Boeing 747-436 G-BYGD (msn 28857) is launched at London Heathrow.
Air Cargo Germany-ACG (Hahn) suspended its flight operations as of April 18, 2013. According to the cargo airline, “the interruption occurred all of a sudden and was not predictable. Air Cargo Germany assures a continuous availability for its customers and works on sustainable solutions to recommence the service as soon as possible.”
Copyright Photo: Paul Denton. Boeing 747-412 (BCF) D-ACGD (msn 24061) arrives at Johannesburg.
Boeing (Chicago) has announced that it will adjust the production rate for the 747-8 program from two airplanes to 1.75 airplanes per month because of lower market demand for large passenger and freighter airplanes.
Boeing will continue to monitor market conditions and their effect on production rates moving forward. The company expects long-term average growth in the air cargo market to resume in 2014, and forecasts a demand for 790 large airplanes (such as the 747-8 Intercontinental) to be delivered worldwide over the next 20 years.
Copyright Photo: Nick Dean. Boeing 747-8JK Intercontinental N6067E (msn 38636) climbs away from the runway at Paine Field near Everett.
Southern Air Holdings, Inc. (Southern Air 2nd) (Cincinnati) announced yesterday (April 15) that it has emerged from Chapter 11, having completed its financial restructuring.
Daniel J. McHugh, Southern Air CEO, said, “We have emerged from this restructuring process with substantially less debt, significantly improved operations and resources, and financial flexibility as a well-capitalized global air cargo carrier. Today, we are well-positioned both financially and operationally to continue to build Southern Air for the long-term benefit of our customers, suppliers, business partners, crewmembers and employees. From our new headquarters at the Cincinnati/Northern Kentucky International Airport, our largest air operating hub, we are even better able to grow profitably, delivering the highest quality services to our customers and meeting and exceeding their air cargo needs.”
Southern Air entered Chapter 11 on September 28, 2012, and emerged from the process on April 15, 2013, after meeting all closing conditions to the Company’s Plan of Reorganization. The Plan was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware on March 14, 2013.
Copyright Photo: Ton Jochems. Boeing 747-4EVF ER N558CL (msn 35171) prepares to taxi to the runway at Amsterdam.
Polar Air Cargo Worldwide, Inc. (New York) today confirmed its plans to initiate daily nonstop Boeing 747-400 express freighter service between Cincinnati, Ohio, and Tokyo, Japan, by the end of April 2013.
The new service will complement a daily 747-400 flight from the Japanese industrial city of Nagoya to Cincinnati, facilitating next-day deliveries to the U.S. from all major cities and industrial areas in Japan.
Polar also will double the frequency of its wide-body freighter connections to Australia from two to four days per week. The routing of this service, via Japan, will allow Polar customers such as DHL Express to optimize their intercontinental networks and introduce additional capacity both from the U.S. and from key North Asian markets to Australia. The increase in Polar’s frequencies will be supported by the introduction of two new Boeing 767-300ERF wide-body aircraft.
Copyright Photo: Michael B. Ing. Boeing 747-46NF N453PA (msn 30811) climbs away from Los Angeles.
Atlas Air (New York) has taken delivery of its eighth Boeing 747-8F Freighter.
Pursuant to a letter of intent (LOI) with an undisclosed customer, the new aircraft is expected to enter ACMI (Aircraft, Crew, Maintenance and Insurance) service during the first half of the second quarter of 2013, which will allow the customer time to integrate the capacity into its scheduled network.
Prior to beginning in ACMI, the aircraft will be operated in short-term, revenue-generating service.
Atlas Air expects to receive one additional 747-8F by the end of the second quarter of 2013, completing the delivery of its order program for nine aircraft.
Copyright Photo: Nick Dean. Boeing 747-87UF N854FT (msn 37566) was handed over in the full Atlas Air livery on April 1. N854FT climbs away from Paine Field near Everett.
Silk Way Airlines (Silkway Azerbaijan Cargo) (Baku) has signed a Memorandum of Understanding (MOU) with Boeing for four new Boeing 747-800F freighters according to cargofacts.net.
Read the full report: CLICK HERE
Copyright Photo: OSDU. Silk Way currently operates three Boeing 747-400F freighters and two 767-300F freighters besides its Russian aircraft. Boeing 747-4R7F 4K-800 (msn 29729) completes its final approach into Moscow (Shereyetyevo).
El Al Israel Airlines (Tel Aviv) reported it narrowed its yearly loss to $18.8 million for 2012, compared with a loss of $49.8 million in 2011, an improvement of 62 percent.
El Al has purchased two additional Boeing narrow-body 737-900s (a total of six have been purchased). The first of these new aircraft will begin service with El Al in October 2013.
Read the full report: CLICK HERE
Copyright Photo: Keith Burton. Boeing 747-458 4X-ELD (msn 29328) climbs gracefully away from the runway at London (Heathrow).
Southern Air Holdings, Inc. (Southern Air 2nd) (Cincinnati) has announced that it has received confirmation of its “pre-arranged” Plan of Reorganization (Plan) from the U.S. Bankruptcy Court in Wilmington, Delaware, which has been overseeing the Company’s Chapter 11 proceedings following its voluntary filing on September 28, 2012. The Plan received substantial support from key secured creditors as well as unsecured creditors. The confirmation clears the way for Southern Air to emerge from its court-supervised financial restructuring as expected, within the next few weeks.
Daniel J. McHugh, Southern Air CEO, said, “We are very pleased to receive court approval of our Plan of Reorganization and hope to exit Chapter 11 in just a matter of weeks. This was a critical part of our overall transformation. We have used this process to dramatically change and improve our capital structure, substantially reduce our debt and other legacy costs, strengthen our balance sheet, and enhance our competitiveness with new financial flexibility.
“We will emerge as a well capitalized carrier delivering safe, high quality air cargo services. As part of our strategic transformation, we have realigned our operations and capabilities and transitioned to a modern, fuel-efficient fleet of 777s and 747-400s serving global customers. Our operations and corporate activities are now in Northern Kentucky (the Cincinnati airport) near our largest hub of activity where we are even better able to satisfy the needs of our customers and grow our business for the long term to benefit our business partners and employees for years to come.
“It is thanks to the hard work and dedication of the Southern Air team and the support of our lenders and business partners that we have been able to move through this process successfully, fulfilling customer requirements as scheduled and providing high quality air cargo services without interruption. As a result of our transformation, Southern Air is better positioned for the future both financially and operationally to grow profitably as an air cargo industry leader,” concluded McHugh.
Copyright Photo: Michael B. Ing. Southern Air is now concentrating its future around the more fuel efficient Boeing 747-400 and the 777 and its growing relationship with DHL. Boeing 747-4F6 (F) N469AC (msn 27602) is pictured on final approach to Los Angeles International Airport.
Cathay Pacific’s 2012 annual profit drops 83.3% to $118 million, accelerates the retirement of the Boeing 747-400
Cathay Pacific Group (Cathay Pacific Airways) (Hong Kong) has issued the following financial report for 2012:
The Cathay Pacific Group reported an attributable profit of HK$916 million ($118 million) for 2012 – an 83.3% fall compared to the profit of HK$5,501 million ($709 million) reported for 2011. Earnings per share fell by 83.3% to HK23.3 cents. Turnover for the year increased by 1.0% to HK$99,376 million.
In 2012 the Group’s core business was adversely affected by the high price of jet fuel, pressure on passenger yields and weak air cargo demand. Economic uncertainty, particularly in the Eurozone countries, and an increasingly competitive environment added to the difficulties. It was a challenging year for the aviation industry generally. The Group’s share of profits from associated companies, including Air China, showed a marked decline.
Passenger revenue for the year was HK$70,133 million, an increase of 3.5% compared to 2011. Capacity increased by 2.6%. The two airlines carried a total of 29.0 million passengers in 2012, up 5.0% on the previous year. The passenger load factor fell by 0.3 percentage points. Yield increased by 1.2% to HK67.3 cents, largely due to higher fuel surcharges consequent upon a 1.7% increase in average fuel prices. Uncertain economic conditions and strong competition on key routes put pressure on yields while premium class yields were affected by travel restrictions imposed by corporations. The high cost of fuel made it more difficult to operate profitably, particularly on long-haul routes operated by older, less fuel-efficient aircraft.
The Group’s cargo revenue in 2012 was HK$24,555 million, a decrease of 5.5% compared to 2011. Yield for Cathay Pacific and Dragonair remained the same as last year at HK$2.42. Capacity was down by 3.1% while the cargo load factor dropped by 3.0 percentage points to 64.2%. The airlines’ cargo business was affected by weak demand in major markets, particularly from Asia to Europe. Demand for shipments from the two key markets of Hong Kong and Mainland China, was well below expectations, although there were short-term upturns in March and in the last quarter. Capacity was adjusted in line with demand.
Fuel remained the most significant cost. Throughout much of 2012, fuel prices were at sustained high levels and this had a major impact on operating results. The Group’s fuel costs (disregarding the effect of fuel hedging) increased by 0.8% compared to 2011. Fuel accounted for 41.1% of total operating costs – a decrease of 0.4 of a percentage point from the previous year. Managing the risk associated with high and sometimes volatile fuel prices remains a key challenge. The Group took advantage of a reduction in fuel prices in May and June to do more hedging with a view to mitigating the impact of future fuel price increases.
In May 2012, Cathay Pacific announced measures designed to protect its business in an environment of high fuel prices and weak revenues. These measures included the accelerated retirement of the less fuel-efficient Boeing 747-400 passenger aircraft; the withdrawal from service of four Boeing 747-400BCF converted freighters; and an adjustment of schedules and reduced capacity on some long-haul routes. At the same time as addressing the challenges to its business, the Cathay Pacific Group kept a clear focus on its key strategic goals: developing its network and its Hong Kong base; maintaining and enhancing the quality of its services; strengthening its relationship with Air China; and maintaining a prudent approach to financial risk management.
The airline continued with its major investments in new aircraft and new products, and opened its own cargo terminal at Hong Kong International Airport in February 2013. Despite the need to adjust schedules in 2012 in light of the challenging business environment and the high cost of fuel, the Group remained committed to maintaining the integrity of its network. On the passenger side, Cathay Pacific added frequencies on routes to India, Japan, Malaysia, Singapore, Taiwan, Thailand and Vietnam and introduced a new service to Hyderabad in India last year. Dragonair added frequencies on routes to secondary cities in Mainland China and introduced or resumed flights to eight destinations in 2012. In the first quarter of 2013, Dragonair is launching another four new destinations. On the cargo side, Cathay Pacific introduced freighter services to Zhengzhou, Hyderabad and Colombo last year.
The upgrading of the Cathay Pacific and Dragonair fleets continued in 2012, with 19 new aircraft received. As at 31 December 2012, the Group had 92 aircraft on order for delivery up to 2020. An order was placed for six Airbus A350-900 aircraft in January 2012. In August the Group ordered 10 Airbus A350-1000 aircraft and converted an existing order for 16 Airbus A350-900 aircraft into an order for 16 Airbus A350-1000 aircraft. In March 2013, Cathay Pacific entered into an agreement with The Boeing Company under which it agreed to buy three Boeing 747-8F freighter aircraft and cancel the agreement to purchase eight Boeing 777-200F freighters that was entered into in August 2011. Under the agreements, the Company also acquired options to purchase five Boeing 777-200F freighters and The Boeing Company agreed to purchase four Boeing 747-400BCF converted freighters, which were taken out of service in 2012 and early 2013. The transaction is part of a package of transactions between the Group, The Boeing Company, Air China Cargo Co., Ltd and Air China Limited.
In an increasingly competitive environment it is crucial to maintain and develop passenger loyalty by providing high quality products and services. This remains a key focus of the Cathay Pacific Group. To this end, Cathay Pacific has introduced a new Premium Economy Class product, a new long-haul Economy Class seat and a new Regional Business Class seat. The airline’s long-haul Business Class was named World’s Best Business Class in 2012 at the World Airline Awards run by Skytrax. Dragonair will also get new Business Class and Economy Class seats from March 2013. On the ground, refurbishment of the Level 7 Business Class Lounge in The Wing at Hong Kong International Airport was completed in January 2012 and the First Class Lounge was reopened in February 2013. In August 2012, Cathay Pacific opened a new lounge in Paris.
Cathay Pacific Chairman Christopher Pratt said: “The Cathay Pacific Group operates in a volatile and challenging industry, one that will always be highly susceptible to external factors that remain largely beyond our control. The cost of fuel remains the biggest challenge, particularly for an airline such as ours where long-haul operations form a significant part of our total operations.
“We believe we have taken the right measures to deal with current challenges and will take whatever further measures are necessary should the business environment not improve. Our focus will remain on protecting the business and managing short-term difficulties while remaining committed to our long-term strategy. Our financial position remains strong and we will continue to invest in the future. Our core strengths remain the same as ever: a superb team, a strong international network, exceptional standards of customer service, a strong relationship with Air China and our position in Hong Kong. These will help to ensure the success of the Cathay Pacific Group in the long term.”
Copyright Photo: Keith Burton. The company is now accelerating the retirement of the Boeing 747-400 fleet. Boeing 747-467 B-HOO (msn 23814) climbs away from London (Heathrow).
Cathay Pacific Airways (Hong Kong) and Boeing have announced an order for three additional 747-8 Freighters. The order, valued at approximately $1 billion at list prices, also includes options for five additional 777 Freighters. The new additions will bolster Cathay Pacific’s 747-8 Freighter fleet to 13 airplanes.
The new 747-8 Freighters are expected to progressively replace Cathay Pacific’s 747-400 Boeing Converted Freighter (BCF) fleet. Cathay Pacific currently operates six 747-400 Freighters, eight 747-8 Freighters, six 747-400 ER Freighters and one 747-400 BCF.
Cathay Pacific currently operates eight 747-8 Freighters and with this order, the airline is set to take delivery of five more. A total of 70 747-8 Freighters have been ordered by more than nine customers around the world. To date, Boeing has delivered 28 747-8 Freighters to six airlines.
Copyright Photo: Luimer Cordero. Boeing 747-867F B-LJE (msn 39242) climbs away from Miami International Airport.
Lufthansa (Frankfurt) issued the following financial statement:
Lufthansa Group generated revenue of EUR 30.1 billion in 2012 ($40.2 billion) (previous year: EUR 28.7 billion). Net profit for the period rose to EUR 990 million ($1.3 billion) (previous year: EUR -13 million), largely due to non-recurring effects from the sale of equity investments. The operating profit came to EUR 524 million (previous year: EUR 820 million). This includes restructuring costs of EUR 160 million for the Group-wide SCORE program. The partial transfer of Austrian Airlines’ flight operations to Tyrolean Airways had a one-time positive effect of EUR 115 million on the operating result.
The Executive Board is proposing to the Supervisory Board to suspend the dividend payment. Net profit is to be fully retained.
The Executive Board plans to close sites and to merge administrative functions.
The Executive Board is proposing to the Supervisory Board to order eight long-haul aircraft and 100 short- and medium-haul aircraft, with a total volume of around EUR 9 billion. Deliveries are scheduled for the period 2015 to 2025.
Copyright Photo: Michael B. Ing. Boeing 747-830 D-ABYC (msn 37828) climbs away from Los Angeles INternational Airport.
Cargolux Airlines International‘s (Luxembourg) board of directors, minus Qatar Airways, has adopted a new business plan. The company issued the following statement:
The Board of Directors of Cargolux Airlines International S.A. has approved the airline’s business plan for the period from 2013 to 2017. The plan is designed to achieve profitable growth, enhance shareholder value and ensure the long-term sustainability of Cargolux. In the same context, the Board of Directors further resolved to request the shareholders of Cargolux to commit additional liquidity to the airline, with a first tranche of $100 million (US) requested for the first quarter of 2013 in the form of a convertible loan. Both decisions enhance the government’s position in the ongoing discussions with potential new shareholders.
‘This is an important milestone for Cargolux in securing its sustainability. Going forward, all stakeholders will need to contribute their part to ensure this plan’s success. I am confident in the leadership team’s ability to execute it together with the airline’s highly skilled and dedicated employees,’ said Paul Helminger, Chairman of the Board of Directors.
Commenting on the business plan, Richard Forson, Interim President and CEO, said: ‘We have a clear vision for the future which is founded on the strengths of the Cargolux business model. By continuing to put customers first while further improving our flexibility and resilience, this business plan will help us meet the challenges ahead and ensure that Cargolux remains a relevant player in the long run’.
The business plan optimizes and builds on the proven Cargolux business model with the aim to:
- retain the single fleet philosophy and leverage the improved efficiency of the Boeing 747-8 freighter
- pursue profitable, moderate fleet growth and optimize daily fleet utilization
- achieve permanent efficiency gains and increased levels of flexibility in terms of cost and capacity; involving a range of measures including amendments to the Collective Work Agreement
- enhance growth and cost competitiveness and return to profitability in 2014
The 2013-2017 business plan is the result of an extensive evaluation by management of the airline’s business model, fleet structure, route network, customer base and future growth opportunities and takes account of different air freight market scenarios and macroeconomic developments.
Copyright Photo: Stephen Tornblom. Boeing 747-8R7F LX-VCD (msn 35809) taxies to the runway at New York’s JFK International Airport.
Atlas Air Worldwide Holdings reports 4Q adjusted net income is up 23% to $48.7 million, 2012 net income rose 17% to $127.0 million
Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York) today announced a 23% increase in adjusted net income attributable to common stockholders for the fourth quarter of 2012, with adjusted net income rising to $48.7 million, or $1.83 per diluted share. For the full year, adjusted net income attributable to common stockholders rose 17% to $127.0 million, or $4.78 per share.
On a reported basis, net income attributable to common stockholders totaled $52.4 million, or $1.97 per diluted share, in the fourth quarter, and $129.9 million, or $4.89 per diluted share, for the year.
Adjusted earnings exclude net gains in the fourth quarter and for the full year that primarily reflected an insurance gain of $0.15 per diluted share related to flood damage at an aircraft parts warehouse during Superstorm Sandy.
Revenues grew 17% to $452.8 million in the fourth quarter and 18% to $1.65 billion for the year. Free cash flow for 2012 totaled $208.5 million.
Revenue and profitability growth in our core ACMI business during the fourth quarter were driven by our new 747-8Fs, which began to enter service late in the fourth quarter of 2011. Volume growth was primarily due to the continued ramp up of CMI flying for Boeing and DHL Express. ACMI results during the period benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments. ACMI customers flew 4.3% above contractual minimums during the quarter.
In AMC Charter, strong growth in our passenger service and rate premiums earned on flying more efficient 747-400 cargo aircraft in the fourth quarter of 2012 compared with less efficient 747-200 aircraft in 2011 partially offset a 48% reduction in cargo block hours and a reduction in the number of one-way AMC missions.
In Commercial Charter, increased revenues and volumes reflected the deployment of 747-400 cargo aircraft in lieu of retired 747-200s, the deployment of an additional 747-400 cargo aircraft to support increased demand in South America, and 747-400 aircraft from ACMI during remarketing periods. Commercial Charter results were affected by a reduction in yields driven by softer charter-market conditions compared with the fourth quarter of 2011, and a reduction in return legs due to fewer one-way AMC Charter missions.
Fourth-quarter results in each segment were affected by increased crew costs, with AMC Charter and Commercial Charter incurring other volume-driven operating expenses and higher aircraft ownership costs related to the deployment of 747-400 aircraft in lieu of 747-200 aircraft.
Unallocated income and expenses during the quarter reflected a pretax insurance gain of $6.3 million (equivalent to $0.15 per fully diluted share on an after-tax basis) related to flood damage incurred at an aircraft parts warehouse during Superstorm Sandy.
Adjusted and reported earnings for the fourth quarter of 2012 included an effective income tax rate of 35.9%, reflecting an adjustment to reserves related to U.S. federal income tax benefits claimed in prior periods that totaled $0.06 per fully diluted share.
Adjusted and reported earnings for the full year of 2012 included an effective income tax rate of 36.8%, relating to the adjustment to U.S. federal income tax reserves and the settlement of income tax examinations in Hong Kong that totaled $0.09 per fully diluted share.
Cash, Cash Equivalents and Short-Term Investments
At December 31, 2012, our cash, cash equivalents and short-term investments totaled $419.9 million, compared with $195.2 million at December 31, 2011.
The growth in cash, cash equivalents and short-term investments in 2012 was primarily driven by an increase in cash provided by operating and financing activities, partially offset by an increase in cash used for investing activities.
Net cash used for investing activities in 2012 primarily related to the purchase of four 747-8F aircraft for our ACMI operations, a third 767-300ER passenger aircraft for our AMC Charter operations, and a 737-300 cargo aircraft for our Dry Leasing business.
Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the delivery of the four 747-8Fs. These proceeds were partially offset by payments on debt obligations and debt issuance costs. Both the proceeds from our issuance of debt and the payments on our debt obligations reflect the refinancing of a total of $571 million of floating-rate term loans with fixed-rate notes issued in the capital markets.
Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas Air) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar Air Cargo). Through Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft.
Top Copyright Photo: Michael B. Ing. Boeing 747-47UF N492MC (msn 29253) climbs away from Bangkok while operating for QANTAS Airways.
Bottom Copyright Photo: Michael B. Ing. Boeing 747-47UF N416MC (msn 32838) of Polar Air Cargo in DHL colors climbs away from Los Angeles International Airport.
Delta Air Lines (Atlanta) has received final approval from the U.S. Department of Transportation (DOT) to operate new nonstop service between Seattle/Tacoma and Tokyo International Airport, also known as Haneda Airport. The new flights will begin on June 1, 2013.
The Haneda flight adds to Delta’s growing Asian gateway in Seattle/Tacoma. In addition to Tokyo-Haneda, Delta will begin new service to Shanghai on June 17, and also operates flights to Beijing, Tokyo-Narita and Osaka, Japan.
Seattle is the largest West Coast city without nonstop service to Haneda, which is the preferred Tokyo airport for many business travelers due to its proximity to the city’s central business district.
The new Haneda flight will complement Delta’s nonstop flight between Seattle/Tacoma and Tokyo-Narita, which will be expanded and upgraded to Boeing 747-400 service on June 1. Delta’s Boeing 747-400 fleet was recently retrofitted with new interiors featuring full flat-bed seats in BusinessElite, Delta’s popular Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft.
Once the Boeing 747-400 is deployed on the Seattle/Tacoma-Narita route, all of Delta’s trans-Pacific flights will feature full flat-bed seats in BusinessElite as well as Economy Comfort and individual in-flight entertainment throughout the aircraft.
In addition to its Asian gateway, Delta operates nonstop service to Paris and Amsterdam from Seattle/Tacoma. By next summer the airline will operate more than 40 daily flights to 15 destinations worldwide from Seattle.
Delta’s international growth in Seattle/Tacoma is possible because of its partnership with Alaska Airlines (Seattle/Tacoma), which operates a domestic hub at Seattle-Tacoma International Airport. Customers of both carriers enjoy access to an expanded network under a major codesharing agreement, as well as reciprocal frequent flier benefits and airport lounge access. The new Tokyo-Haneda flight will benefit from easy connections to 55 U.S. cities on Delta and Alaska’s domestic networks.
Copyright Photo: Michael B. Ing. Boeing 747-451 N676NW (msn 33002) climbs away from Tokyo (Narita).
UPS (United Parcel Service) (UPS Airlines) (Atlanta and Louisville) announced record 2012 fourth quarter and full year adjusted diluted earnings per share of $1.32 and $4.53 respectively, with the U.S. Domestic segment leading the way. The company generated annual free cash flow of approximately $5.4 billion, a testament to operations execution and the emphasis UPS places on capital efficiency. UPS estimates that Hurricane Sandy reduced earnings per share by approximately $0.05.
UPS recorded a fourth quarter mark-to-market, non-cash, after-tax charge of $3.0 billion for its company-sponsored pension and post-retirement benefit plans. Although the plans exceeded their expected rate of return, these incremental gains were more than offset by a 120 basis point decline in year-end discount rates. As a result, on a GAAP basis, diluted earnings per share for the quarter fell to a loss of $1.83. For the full year, reported diluted earnings per share were $0.83. This adjustment does not affect cash flow, required pension funding or benefits paid to plan participants.
UPS expects full year earnings per share to be within a range of $4.80 – $5.06, an increase of 6-to-12% compared to 2012 adjusted results. The company also raised guidance for 2013 share repurchases from $1.5 billion to $4.0 billion.
|Revenue||$14.57 B||$14.17 B|
|Operating profit (loss)||
|$2.05 B||$1.20 B||$2.02 B|
|14.1 %||8.4 %||14.3 %|
|Average volume per day||18.8 M||18.3 M|
|Diluted earnings (loss) per share||
During the year, UPS delivered more than four billion packages. For the quarter, it delivered 18.8 million pieces per day, an increase of 2.9% over the prior-year period.
Overall consumer spending for holiday shopping fell slightly below expectations, however; UPS still delivered more than 500 million packages, including almost 28 million on its peak day, both new records.
For the year ending Dec. 31, UPS generated $5.4 billion in free cash flow after capital expenditures of $2.2 billion. UPS repurchased 21.8 million shares for approximately $1.6 billion and paid dividends totaling $2.1 billion, up 9.6% per share.
Copyright Photo: Joe G. Walker. Boeing 747-45E (BCF) N579UP (msn 26062) climbs away from Anchorage International Airport (ANC).
Southern Air (2nd) is moving its corporate headquarters from Norwalk, CT to Cincinnati/Northern Kentucky International Airport (CVG) located in Covington, KY as part of its Chapter 11 reorganization. DHL, its largest customer, has a hub at CVG. As we previously reported, Southern Air and its holding company, Southern Air Holdings, Inc., filed for Chapter 11 bankruptcy protection and reorganization on September 28, 2012.
Read the full report from the kypost.com: CLICK HERE
In other news, Southern Air retired its last Boeing 747-200F freighter (N783SA) on January 5, 2013 as reported by ch-aviation.
Copyright Photo: Ton Jochems. Boeing 747-281F N783SA (msn 23919) is pictured on the ramp at Frankfurt prior to the retirement.
United Airlines launches satellite based Wi-Fi service on its first international wide body aircraft
United Airlines (Chicago) has introduced onboard satellite-based Wi-Fi internet connectivity on the first of its international widebody aircraft, becoming the first U.S.-based international carrier to offer customers the ability to stay connected while traveling on long-haul overseas routes.
The aircraft, a Boeing 747-400 outfitted with Panasonic Avionics Corporation’s Ku-band satellite technology, serves trans-Atlantic and trans-Pacific routes.
Additionally, United has outfitted Ku-band satellite Wi-Fi on two Airbus A319 aircraft serving domestic routes, offering customers faster inflight Internet service than air-to-ground technology (ATG). The company expects to complete installation of satellite-based Wi-Fi on 300 mainline aircraft by the end of this year.
“Satellite-based Wi-Fi service enables us to better serve our customers and offer them more of what they want in a global airline,” said Jim Compton, vice chairman and chief revenue officer at United. “With this new service, we continue to build the airline that customers want to fly.”
Customers have the choice of two speeds: Standard, priced initially between $3.99 and $14.99 depending on the duration of flight, and Accelerated, priced initially between $5.99 and $19.99 and offering faster download speeds than Standard.
United will install satellite-based Wi-Fi on Airbus A319 and A320 aircraft, and on Boeing 737, 747, 757, 767, 777 and 787 aircraft. Customers will be able to use their wireless devices such as laptops, smart phones and tablets onboard those aircraft to connect with internet service using the in-flight hotspot.
United is upgrading its fleet with more than $550 million in additional onboard improvements, including:
- Offering the world’s largest fleet of aircraft with flat-bed seats, with more than 175 aircraft with 180-degree flat beds in premium cabins once the airline completes the installation in the second quarter.
- Expanding extra-legroom Economy Plus seating to provide the most such seating of any U.S. carrier.
- Revamping the transcontinental “p.s.” fleet of airplanes that fly between New York Kennedy and Los Angeles and San Francisco, offering an improved premium cabin with fully flat beds, Wi-Fi Internet service, and personal on-demand entertainment at every seat.
- Improving inflight entertainment options with streaming video content on the Boeing 747-400 fleet.
- Retrofitting overhead bins on 152 Airbus aircraft, allowing for significantly greater storage of carry-on baggage.
Copyright Photo: Keith Burton. Boeing 747-422 N177UA (msn 24384) climbs away from London (Heathrow).
United Parcel Service Inc (UPS) (UPS Airlines) (Atlanta and Louisville) will drop its bid to acquire TNT Express N.V. (Hoofddorp) because it now expects the European Commission (EC) to deny the acquisition.
On March 19, 2012, UPS announced its intention to acquire TNT Express for $6.7 billion. On September 5, 2012, UPS announced it expected to close the deal in early 2013 subject to EC approval.
UPS will pay TNT a termination fee in the amount of EUR 200 million.
TNT Airways (Liege) is a subsidiary of TNT Express. TNT is now expected to remain independent.
UPS issued the following statement:
United Parcel Service, Inc. announced today (January 14) the European Commission (EC) has informed UPS and TNT Express that it is working on a decision to prohibit the proposed acquisition of TNT Express.
UPS submitted an initial remedies proposal on November 29, 2012 and subsequently revised the proposal twice. UPS began the competitive review process with the EC in March 2012.
Scott Davis, UPS Chairman and CEO said, “We are extremely disappointed with the EC’s position. We proposed significant and tangible remedies designed to address the EC’s concerns with the transaction. The combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting growth in Europe in particular.”
Upon prohibition by the EC, the Offer Condition relating to EU Competition Clearance will not be fulfilled and UPS will pay TNT a termination fee in the amount of EUR 200 million and will withdraw the Offer.
Further announcements will be made once the European Commission has issued its formal decision. The decision is expected to be adopted formally in the coming weeks.
Top Copyright Photo: Michael B. Ing. Boeing 747-44AF N572UP (msn 35669) climbs away from Anchorage International Airport (ANC).
Bottom Copyright Photo: Rainer Bexten. Southern Air’s Boeing 777-FHT N778SA (msn 39286) arrives at the Liege, Belgium sorting facility.
China Airlines (Taipei) has repainted its Boeing 747-409 B-18210 (msn 33734) which was painted in the promotional Boeing 787 Dreamliner livery. China Airlines, which called the special aircraft “Dynamic Blue”, has repainted the aircraft in its regular colors.
Copyright Photos: Manuel Negrerie. B-18210 is pictured departing from the Taipei (Taoyuan) base before it was repainted.
GE Capital Aviation Services Limited (GECAS), the commercial aircraft leasing and financing arm of GE, announced today it will lease four new Boeing 777-300 ERs to China Airlines (Taipei). This is a new aircraft type for CAL.
The first aircraft is scheduled for delivery in 2014 to modernize the airline’s long-haul wide-body fleet. All four leased aircraft come from GECAS’ existing order book with Boeing.
In addition, on December 21, Boeing and China Airlines announced an order for six 777-300 ERs (Extended Range) airplanes. The order is valued at approximately $2 billion at list prices.
Taiwan’s flag carrier is in the midst of renewing its long-haul fleet and plans to operate the new 777-300 ERs on new trans-Pacific flights between North America and Asia.
In November 2011, GECAS announced it will lease four new Airbus A330-300 aircraft to China Airlines. Delivery of the first two aircraft from GECAS’ existing order book with Airbus was in October and December 2012.
In addition to the four A330-300s and four 777-300 ERs scheduled for delivery in the next three years, GECAS currently leases eight Embraer ERJ 190s to Mandarin Airlines (Taipei), a subsidiary of China Airlines.
Founded in 1959, China Airlines is a full-service flag carrier of Taiwan, operating a fleet of 72 regional and international aircraft to over 112 destinations in 28 countries across Asia and to Oceania, Europe and the U.S.
Copyright Photo: Stephen Tornblom. The new Triple Sevens will partially replace the older Boeing 747-400s. Boeing 747-409 N168CL (msn 29906) taxies across the apron at New York’s JFK International Airport.
Delta Air Lines and Virgin Atlantic Airways to form a strategic alliance, Delta to buy 49% of Virgin Atlantic from Singapore Airlines
Delta Air Lines (Atlanta) and Virgin Atlantic Airways Ltd. (London) have reached an agreement for a new joint venture that will create an expanded trans-Atlantic network and enhance competition between the U.K. and North America, offering greater benefits for customers traveling on those routes.
As part of this joint venture agreement, Delta will invest $360 million in Virgin Atlantic, acquiring a 49 percent stake currently held by Singapore Airlines. Virgin Group and Sir Richard Branson will retain the majority 51 percent stake and Virgin Atlantic Airways will retain its brand and operating certificate.
Highlights of the agreement include:
- A fully integrated joint venture that will operate on a “metal neutral” basis with both airlines sharing the costs and revenues from all joint venture flights.
- A combined trans-Atlantic network between the United Kingdom and North America with 31 peak-day round-trip flights.
- Enhanced benefits for customers including cooperation on services between New York and London, with a combined total of nine daily round-trip flights from London-Heathrow to John F. Kennedy International Airport and Newark Liberty International Airport.
- Reciprocal frequent flyer benefits.
- Shared access to Delta Sky Club and Virgin Atlantic Clubhouse airport lounges for elite passengers.
The airlines will file an application with the U.S. Department of Transportation for antitrust immunity, which will allow a closer relationship and coordination on schedules and operations. The transaction also will be reviewed by the U.S. Department of Justice and the European Union’s competition regulator and other relevant authorities. The share purchase and the joint venture are expected to be implemented by the end of 2013.
“Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the U.K., particularly on the New York-London route, which is the largest airline route between the U.S. and Europe,” said Delta CEO Richard Anderson. “By combining the strengths of our two companies in a joint venture, we can provide customers with a seamless network between North America and the U.K., and continue building a better airline for our customers, employees and shareholders.”
Steve Ridgway, Virgin Atlantic Chief Executive, added: “Consumers will reap the rewards of this partnership between two great airline brands on services from the UK to the USA, Canada and Mexico through a shared ethos in the highest standards of customer service. This joint venture will deliver much more effective competition at Heathrow.
“Both airlines are confident that the Department of Transportation will be as convinced as we are of the extensive consumer benefits arising from this joint venture, with expedited approval being granted by the end of 2013. The trans-Atlantic market is Virgin Atlantic’s heartland – it’s where we started. By aligning with Delta we can continue to grow our North American network and offer greatly enhanced connectivity across the USA.”
Virgin Atlantic President, Sir Richard Branson, commented: “This is an exciting day in Virgin Atlantic history. It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business. I truly look forward to the possibilities our partnership with Delta will offer. We have always been known for our innovation and service and have punched above our weight for 28 years. That is why our customers love us so much. We will retain that independent spirit but move forward in a strengthened partnership with Delta.”
Delta and Virgin Atlantic customers will be able to earn and redeem miles across Delta’s SkyMiles and Virgin Atlantic’s FlyingClub frequent flyer programs. Premium customers also will have reciprocal access to the Delta Sky Club and Virgin Atlantic Clubhouse airport lounges. Full details will be announced as services become available.
The partnership allows both carriers to offer a greatly expanded network at Heathrow and to overcome slot constraints, which have limited the growth and competitive capability of both airlines. The two carriers will operate a total of 31 peak-day round-trip flights between the U.K. and North America, 23 of which operate at London-Heathrow. The enlarged network will benefit customers of both carriers by providing greater access to a broader network, improved connectivity and convenient booking options.
As part of a $3 billion investment in enhanced global products, services and airport facilities, all of Delta’s flights between the U.S. and London-Heathrow feature full flat-bed seats offering direct aisle access in the BusinessElite cabin. These flights also offer Delta’s popular Economy Comfort seating in the forward section of the economy cabin. Economy Comfort offers four additional inches of legroom and 50 percent more recline compared to standard economy seats. All cabins offer in-seat audio and video on demand with a broad range of in-flight entertainment options. Delta also will begin introducing in-flight WiFi service on international flights beginning in 2013.
Virgin Atlantic has recently completed a £150m upgrade program. A new Upper Class cabin has been introduced across its Airbus A330 aircraft, which features the longest fully flat bed in the sky. This is complemented by a redesigned onboard bar and new Clubhouses at both JFK and Newark airports. The airline’s Boeing 747 leisure fleet has been completely refitted and features onboard connectivity and VERA Touch – Virgin Atlantic’s award-winning touch screen in-flight entertainment system – offering passengers hours of entertainment at their fingertips.
Top Copyright Photo: Michael B. Ing. Boeing 747-451 N668US (msn 24223) completes its final approach into Tokyo (Narita).
Bottom Copyright Photo: Keith Burton. Airbus A340-642 G-VWEB (msn 787) arrives at the London (Heathrow) hub.
United Parcel Service, Inc. (Atlanta and Louisville) and TNT Express N.V. (Hoofddorp) (TNT Airways) have announced, in line with Dutch disclosure requirements, that remedies have been submitted to obtain competition clearance from the European Commission (EC) for the acquisition of TNT Express by UPS. The offer of remedies does not change the terms and conditions of the Offer by UPS for TNT Express.
The proposed remedies aim to address the EC’s concerns regarding the competitive effects of the intended merger on the international express small package market in Europe. UPS and TNT Express continue to be fully committed to the merger and are working closely with the EC in order to gain competition clearance allowing completion of the transaction in early 2013. As part of the approval process, the EC will market-test the remedies on a confidential basis.
The proposed remedies comprise the sale of business activities and assets in combination with granting access to air capabilities. Eligible buyers of these activities will have to ensure the long-term viability of the divested activities and continuity of customer service.
No further details of the confidential discussions or proposed remedies will be revealed at this stage. The discussions are ongoing, which means that the offered remedies may be subject to change.
UPS and TNT Express believe their merger will help create a more efficient logistics market, thereby improving the competitiveness of Europe and the solutions offered to businesses and consumers. Customers and consumers will benefit from a broader portfolio of services and better global access, along with lower supply-chain costs overall and improved service levels in terms of timing and reliability.
UPS and TNT Express value their employees highly. Both UPS and TNT Express will follow the required consultation and advice procedures with their works councils with regard to these remedies.
In accordance with EU Merger Regulation, the timing of the remedies submission extends the EC’s review period by 15 business days to February 5, 2013.
Copyright Photo: Michael B. Ing. UPS’ Boeing 747-44AF N571UP (msn 35668) climbs away from Anchorage International Airport.
Cargolux Airlines International‘s (Luxembourg) and Qatar Airways‘ (Doha) officials met yesterday to discuss a new strategy and direction for the cargo airline. The two parties could not agree on the future direction of the company according to this report by Reuters. As a result, Qatar will sell its 35 percent share in Cargolux.
Read the full report: CLICK HERE
Copyright Photo: Tony Storck. Cargolux’s Boeing 747-8R7F LX-VCD (msn 35809) climbs powerfully away from the runway at Miami International Airport.
Delta Air Lines (Atlanta) has completed the installation of full flat-bed seats in the BusinessElite® cabin of all Boeing 747-400 type aircraft.
The last of 16 Boeing 747 aircraft, each with 48 BusinessElite seats, has been retrofitted with full flat-bed seats. It entered scheduled service this week on a flight between Singapore and Tokyo’s Narita airport, before making its way to Atlanta.
Delta previously completed installation of the full flat-bed modification on its Boeing 777 and 767-400 ER aircraft types. To date, 13 767-300 ER aircraft have received the modification and three more will be complete by month’s end. In total, approximately 50 percent of Delta’s widebody international fleet has received the upgrade. In addition to flat-bed seats in BusinessElite, the cabin overhaul includes upgraded seats in the Economy cabin with personal entertainment at every seat. The airline’s entire widebody international fleet of more than 140 aircraft will receive the full aircraft modification in both cabins by the middle of 2014.
Delta recently announced plans to install full flat-bed seats on its transcontinental flights between New York – JFK and Los Angeles, San Francisco and Seattle.
This autumn, Delta announced plans to add Wi-Fi to its entire international fleet. The airline is already the largest operator of Wi-Fi-equipped aircraft on more than 3,000 flights serving more than 400,000 customers every day. When complete, Delta will offer Wi-Fi on more than 950 aircraft, from 747s to two-class regional jets.
Copyright Photo: Michael B. Ing. Boeing 747-451 N674US (msn 30269) climbs away from Los Angeles International Airport.
Nippon Cargo Airlines-NCA (Tokyo) has announced it will launch new freighter flights connecting Tokyo’s Narita International Airport and DFW International Airport, starting November 5. Nippon Cargo’s twice weekly flights will be the first direct freighter connections for the Dallas/Fort Worth area into Japan, and will bolster DFW cargo lift capacity to Asia while also providing a new connection to a strategically important destination.
Nippon Cargo Airlines will operate the route from Tokyo Narita to Chicago O’Hare, then to DFW Airport, Anchorage, Alaska, and then back to Narita. Nippon Cargo Airlines will fly 747-400 aircraft on the route, and the carrier ultimately plans to phase-in 747-8′s, the most fuel-efficient planes in the industry.
Copyright Photo: Michael B. Ing. Boeing 747-481F JA04KZ (msn 34283) in the special “NCA Green Freighter” scheme climbs majestically away from Anchorage International Airport.
Delta Air Lines (Atlanta) today reported:
- net income, excluding special items1, for the September 2012 quarter was $768 million, or $0.90 per diluted share.
- Delta’s September 2012 quarter GAAP net income was $1.0 billion, or $1.23 per diluted share, including mark-to-market gains on open fuel hedges and other special items.
- Delta’s unit revenues were up 3 percent for the quarter and the company has produced a unit revenue premium to the industry for eighteen consecutive months.
- Results included $174 million in profit sharing expense, for a total of $309 million year to date, in recognition of Delta employees’ efforts toward the company’s financial targets. In addition, Delta people have received $67 million in Shared Rewards in 2012 for hitting the company’s operational and customer service targets.
- Delta ended the September 2012 quarter with $5.1 billion in unrestricted liquidity and adjusted net debt of $11.9 billion.
Delta’s operating revenue grew $107 million, or 1 percent, on 1.5 percent lower capacity in the September 2012 quarter compared to the September 2011 quarter. Load factor for the quarter increased 0.3 points year over year to 86.4 percent.
- Passenger revenue increased 1 percent, or $124 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 3 percent, driven by a 3 percent improvement in yield.
- Cargo revenue decreased 5 percent, or $14 million, with lower cargo yields partially offset by higher volumes.
- Other revenue decreased $3 million as lower third-party maintenance revenues were partially offset by higher codeshare revenue.
Comparisons of revenue-related statistics are as follows:
|3Q12 versus 3Q11|
|Passenger Revenue||3Q12 ($M)||Change
“Our solid revenue performance reflects the benefits of capacity discipline, strong operational performance and the investments we have made in our products and service,” said Ed Bastian, Delta’s president. ”We expect our revenue performance to benefit from our continued capacity discipline and further corporate travel gains and we are forecasting our October unit revenues to increase 4 – 5% year over year.”
Excluding mark-to-market adjustments, Delta’s average fuel price2 was $3.14 per gallon for the September quarter, which includes 3 cents per gallon in settled losses from its fuel hedging program. On a GAAP basis, which includes $440 million of mark-to-market gains on out of period hedges, the company’s average fuel price was $2.71 per gallon.
During the September quarter, jet fuel production began at Delta’s wholly-owned Trainer Refinery and the company expects the plant to be fully operational in the December quarter. For the December quarter, Delta expects Trainer’s production to generate a contribution of breakeven to $25 million.
Non-Fuel Cost Performance
Consolidated unit cost (CASM3), excluding fuel expense, profit sharing and special items, was 5.6 percent higher in the September 2012 quarter on a year-over-year basis, driven by the impact of capacity reductions, higher maintenance expense, wage increases and service investments. GAAP consolidated CASM decreased 2 percent primarily due to mark-to-market gains on open fuel hedges.
“With consistent investment in the business, our non-fuel costs have grown in the past few quarters and we expect that trend to continue into the first half of next year,” said Paul Jacobson, Delta’s chief financial officer. “However, we are in the process of implementing a $1 billion program of structural initiatives that we anticipate will generate significant savings in the second half of 2013, while maintaining the high quality product, network and operation we have built.”
Cash Flow and Liquidity
As of September 30, 2012, Delta had $5.1 billion in unrestricted liquidity, including $3.2 billion in cash and short-term investments and $1.9 billion in undrawn revolving credit facilities.
Operating cash flow during the September 2012 quarter was $545 million, driven by the company’s profitability, which was offset by the normal seasonal decline in advance ticket sales. Free cash flow for the September 2012 quarter was $120 million.
Capital expenditures during the quarter were $425 million, including $275 million for fleet, including advance payments for 737-900ERs, induction costs for MD-90s and interior modifications to Delta’s international fleet.
During the September quarter, Delta paid $270 million in net debt maturities and capital lease obligations. At September 30, the company’s adjusted net debt was $11.9 billion, a reduction of $5 billion since the end of 2009.
Subsequent to the end of the quarter, Delta refinanced $1.7 billion in debt and undrawn revolving credit facilities secured by the company’s Pacific routes and slots. As a result of this transaction, the company has maintained its revolving credit capacity and lowered the interest rate. Delta expects the transaction will generate more than $30 million in annual interest expense savings.
December 2012 Quarter Guidance
Delta’s projections for the December 2012 quarter are below.
|4Q 2012 Forecast|
|Average fuel price, including taxes and settled hedges||$ 3.15 – $3.20|
|Operating margin||4 – 6%|
|Capital expenditures||$450 – 550 million|
|Total liquidity at end of period||$ 5.2 billion|
|4Q 2012 Forecast
(compared to 4Q 2011)
|Consolidated unit costs – excluding fuel expense and profit sharing||Up 5 – 7%|
|System capacity||Down 1 – 3%|
|Domestic||Down 1 – 3%|
|International||Down 2 – 4%|
Delta recorded special items totaling a $279 million gain in the September 2012 quarter, including:
- a $440 million gain on mark-to-market adjustments on fuel hedges settling in future periods;
- a $39 million gain associated with the exchange of slots at New York-LaGuardia and Washington-Reagan National;
- a $12 million loss on extinguishment of debt;
- a $66 million charge for severance and related costs; and
- a $122 million charge for facilities, fleet and other, including charges resulting from the closure of Comair.
Delta recorded special items totaling a $216 million charge in the September 2011 quarter, primarily related to mark to market adjustments for open fuel hedges.
(1) Note A to the attached Consolidated Statements of Operations provides a reconciliation of non-GAAP financial measures used in this release and provides the reasons management uses those measures.
(2) Average fuel price per gallon: Delta’s September 2012 quarter average fuel price of $3.14 per gallon reflects the consolidated cost per gallon for mainline and regional operations, including contract carrier operations, and includes the impact of fuel hedge contracts with original maturity dates in the September 2012 quarter. Settled hedge losses for the quarter were $26 million, or 3 cents per gallon. On a GAAP basis, fuel price includes $440 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period.
(3) CASM – Ex: Delta excludes from consolidated unit cost ancillary businesses which are not related to the generation of a seat mile, including aircraft maintenance and staffing services which Delta provides to third parties and Delta’s vacation wholesale operations (MLT). The amounts excluded were $214 million and $232 million for the September 2012 quarter and September 2011 quarter, respectively.
Copyright Photo: Tony Storck. Boeing 747-451 N669US (msn 24224) lands at Baltimore/Washington International Thurgood Marshall Airport (BWI).
Malaysia Airlines (Kuala Lumpur) is planning to retire the last Boeing 747-400 from revenue passenger service in February 2013 according to a report by Airline Route.
Copyright Photo: Antony J. Best. Although now repainted and retired, Boeing 747-4H6 9M-MPB (msn 25699) once wore this colorful red Hibiscus livery.
Southern Air, Inc. (2nd) and the holding company, Southern Air Holdings, Inc., today (September 28) filed for Chapter 11 bankruptcy protection and reorganization.
The company issued the following statement:
To position the company for future growth and success, Southern Air has been taking steps in response to the economic challenges and extreme industry changes that have impacted the international freight market, including major cutbacks in spending by the U.S. Department of Defense. At the same time, we have been making good progress in transitioning to a modern, fuel-efficient fleet of 777s and 747-400s serving global customers. The next component of our transformation is the restructuring of our corporate debt and other costs associated with our acquisition in 2007. With an improved balance sheet, Southern Air will have a greater capacity to move forward as a global air cargo industry leader on a financially stronger and more competitive foundation for the long term.
In order to implement this financial restructuring, Southern Air Holdings, Inc., including Southern Air Inc., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on September 28, 2012 with the support of a majority of our key financial stakeholders. We will work with them to finalize, obtain court approval for, and implement a plan of reorganization as quickly as possible.
We have also filed a proposed plan of reorganization that has the support of a majority of our key financial stakeholders and provides for the continuation of our business in the normal course. We are working to complete the debt restructuring as quickly and efficiently as possible.
Southern Air remains open for business as usual, and fully expects to continue normal business operations, fulfilling all customer requirements as scheduled and providing uninterrupted high quality air cargo services.
Copyright Photo: Tony Storck. Boeing 747-2F6B (F) N765SA (msn 21833) lands at Baltimore/Washington.
Atlas Air Worldwide Holdings, Inc. (New York-JFK) has announced that it has reached an agreement with DHL Express for placement of its sixth and seventh Boeing 747-8 Freighter aircraft.
These aircraft will be operated by Atlas Air Worldwide’s unit, Atlas Air, Inc., (New York-JFK) in the Polar Air Cargo Worldwide express network under an ACMI arrangement for the benefit of DHL Express commencing in the fourth quarter of 2012. These aircraft will be the first of their type to be flown for DHL Express and will operate in DHL’s Asian and trans-Pacific markets. These aircraft will replace two Boeing 747-400F Freighters that are currently in service for DHL Express and currently operated by Polar Air Cargo (above).
Atlas Air expects to receive an additional two 747-8Fs in the first half of 2013, for a total of nine aircraft, completing the delivery of its order program.
Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York) today issued the following statement in response to inquiries about the General Electric GEnx-2B engines serving the company’s Boeing 747-8 Freighter fleet:
“Atlas Air Worldwide’s industry leadership and our operations are based on a deep commitment to and a track record of safety, compliance and security.
Reflecting our commitment and track record, we have worked closely and continually with General Electric regarding the GEnx-2B engines serving our new Boeing 747-8 Freighters, five of which are currently in service and four of which remain to be delivered to us.
In conjunction with GE, we established a plan to inspect each of the engines serving our existing 747-8s and will work with GE to inspect the engines that will power our remaining 747-8 deliveries.
To date, the inspections have not uncovered any issues with our engines and have not resulted in any loss of flying time by our 747-8 Freighters.
We have also worked with GE to establish a plan to re-inspect each of our GEnx-2B engines at appropriate intervals.
Future periodic inspections of our GEnx engines are planned to be carried out during regularly scheduled maintenance checks on our 747-8 aircraft.
As a result, we do not expect re-inspections of our GEnx engines to disrupt our ability to continue to provide safe, value-added 747-8F service to our customers.
As always, reflecting our commitment to and our track record of safety, compliance and security leadership, we will fully comply with any and all directives issued by the Federal Aviation Administration and other regulators with respect to the operation of our aircraft.”
Copyright Photo: Nick Dean. The first new Boeing 747-800F freighter in full Atlas Air colors is seen at Paine Field near Everett, WA. 747-87UF (msn 37571) prepares to depart from PAE and will be delivered later this month.
Air China (Beijing) has firmed up its order for five passenger Boeing 747-8 Intercontinental wide-body aircraft according to this report by The Seattle Times.
Read the full report: CLICK HERE
Meanwhile the “Airbus Countries”, United Kingdom, France, Germany and Spain are expected to pursue a suspension of the European Union’s Emission Trading System (ETS) for airlines to avert retaliation from China according to this report by Reuters.
Read the full report: CLICK HERE
Copyright Photo: Keith Burton. The new Jumbos will replace the last four Boeing 747-400s and supplement the new Boeing 777-300 ERs. The pictured 747-4J6 B-2469 (msn 28756) is seen on its final approach at London (Heathrow).
Saudi Arabian Airlines (Jeddah) started wet leasing this Boeing 747-400 yesterday (September 10) from Pullmantur Air (Madrid). The pictured 747-4H6 EC-KXN (msn 25703) has been painted in the full Saudi Arabian livery. Saudi Arabian leases in additional aircraft during the yearly religious Hajj season.
Copyright Photo: Lucio Alfieri. EC-KXN is seen on the ramp at Bologna.
Lufthansa (Frankfurt) today is suffering through another 24-hour strike by its flight attendants. The company issued the following statement:
“The Independent Flight Attendants Organization (UFO) has announced a nationwide 24-hour strike action for Friday, 7. September 2012.
Lufthansa has prepared a list with cancelled flights. Our goal is to provide as much certainty as is possible for our passengers.
Lufthansa sincerely regrets that the labor dispute is being waged at the expense of its customers. Lufthansa will do its utmost best to minimize the impacts on its customers.
The call to strike action forces Lufthansa to cancel a majority of flights. Unscheduled cancellations and delays of Lufthansa flights must be anticipated. Flights of Austrian Airlines, Brussels Airlines, Germanwings and Swiss as well as LH codeshare flights will not be affected. However, at this stage, Lufthansa cannot say for sure what exact impact the strike action will have.
Even after the end of the strike, Lufthansa foresees irregularities in flight operations on the weekend.”
However the two warring sides are now showing signs they may want to settle their on-going dispute. Both sides are now welcoming a mediation as a possible way to resolve the issues.
Copyright Photo: Gerd Beilfuss. Boeing 747-830 D-ABYA (msn 37827) lands at Hamburg. The airline is planning to make Chicago (O’Hare) its third Boeing 747-8 Intercontinental destination after Washington (Dulles) and Bangalore.
Corsair International (formerly Corsairfly) (Paris-Orly) is planning to resume weekly Paris (Orly)-Cancun service with Boeing 747-400s starting on November 1 according to Airline Route.
Copyright Photo: The Corsair fleet is being repainted from its Corsairfly and TUI livery to the new “shades of blue” 2012 livery. This former United Airlines Boeing 747-422 F-GTUI (msn 26875) displays the 2001 TUI color scheme.
Current Route Map:
Lufthansa‘s (Frankfurt) passengers can now book flights to the latest Boeing 747-8 destination. Tickets for flights on the Frankfurt-Bangalore route with the Lufthansa flagship are now on sale. From September 13, the “Queen of the Skies” will depart daily from Frankfurt for Bangalore at 12.15 hours, operating under flight number LH 754. The scheduled arrival time in the Indian metropolis is 0.30 hours local time. Two hours later, LH 755 will return to its home base in Frankfurt, landing at 08.25 hours.
Lufthansa will soon take delivery of its third Boeing 747-8 and add the final touches to the aircraft, which will bear the registration of D-ABYD. As soon as it is ready to enter into service, it will be deployed on the route to Bangalore – the third Lufthansa destination to be served by the new jumbo jet. The Boeing 747-8 Intercontinental currently flies to Washington (Dulles) and Delhi.
On board, Lufthansa passengers can enjoy the new Business Class, which includes a seat that can be converted at the press of a button into a horizontal sleeping surface measuring 1.98 metres in length. The new seat offers exceptional comfort for passengers in a sitting or recumbent position, intuitive adjustment features, additional storage space and enhanced entertainment system.
The Boeing 747-8 Intercontinental is a completely new aircraft that builds upon the positive features of the Boeing 747 series, Lufthansa’s long-haul workhorse for more than 40 years. The aircraft’s wings have significantly improved aerodynamics and newly developed wingtips. The aircraft also provides tangible improvements in terms of eco-efficiency. The GEnx-2B engines consume less fuel and achieve a 15 per cent improvement in fuel efficiency and CO2 emissions per passenger. In addition, noise emissions have been reduced by 30 per cent.
In 2012, Lufthansa expects to take delivery of a further Boeing 747-8 Intercontinental, which is scheduled to operate flights to Los Angeles. To date, Lufthansa has ordered a total of 20 Boeing 747-8 aircraft.
Copyright Photo: Nick Dean. Boeing 747-8 Intercontinental D-ABYD (msn 37829) departs from Paine Field near Everett.
Lufthansa‘s (Frankfurt) 10,000 cabin staff (flight attendants) have rejected the latest contract proposal. The union will decide next week whether they will strike according to this report by Reuters.
Read the full report: CLICK HERE
Copyright Photo: Brian McDonough. Brand new Boeing 747-830 D-ABYA (msn 37827) climbs majestically away from Dulles International Airport near Washington.
Atlas Air (New York-JFK) yesterday (August 6) celebrated its 20th anniversary of the founding of the cargo company.
According to the company, “Our company’s founder, Michael Chowdry, named “Atlas Air” after a 45-foot statue of the Greek titan Atlas in Rockefeller Center, New York City.”
Atlas Air now has the largest fleet of Boeing 747 freighters and is the only ACMI operator with the next-generation 747-8F.
Financially, the Atlas Air Worldwide Holdings holding group has had 17 consecutive profitable quarters.
Today the company has it headquarters in Purchase, New York with a training center in Miami, sales offices in Latin America, London, Dubai and Hong Kong and operations centers in Anchorage, Houston and numerous locations around the world.
The first revenue flight was operated on February 11, 1993, with a Boeing 747-200 freighter operating for China Airlines (Taipei) from New York (JFK) to Taipei via Anchorage, Alaska.
The company has developed a special 20th Anniversary logo which is likely to be added to the aircraft.
Copyright Photo: Bruce Drum. Boeing 747-228F N809MC (msn 20887) display the original 1992 livery at Miami.
Lufthansa Group (Lufthansa) (Frankfurt) reported its operating profit rose 28 percent to $444 million, beating estimates. The Group has been dropping unprofitable routes and reducing costs.
Read the full story from the airline: CLICK HERE
Copyright Photo: Brian McDonough. Boeing 747-430 D-ABTC (msn 24287) soars away from Dulles International Airport bound for the Frankfurt hub.
Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York) today announced earnings for the second quarter of 2012 and reaffirmed guidance for full-year earnings in excess of $5.10 per diluted share on both a reported and adjusted basis.
For the three months ended June 30, 2012, adjusted net income attributable to common stockholders totaled $31.2 million, or $1.18 per diluted share, compared with $26.0 million, or $0.98 per diluted share, for the three months ended June 30, 2011.
On a reported basis, second-quarter 2012 net income attributable to common stockholders totaled $30.9 million, or $1.16 per diluted share, compared with $23.8 million, or $0.90 per diluted share, in the second quarter of 2011.
Revenues totaled $424.7 million in the second quarter of 2012 and $349.6 million in the second quarter of 2011.
“In AMC Charter, volumes and profitability increased as strong growth in our military passenger service outweighed a moderation in AMC cargo demand. And in Commercial Charter, higher volumes and profitability reflected the scale and flexibility of our operations. We deployed an additional 747-400 aircraft to support increased demand in South America, and we responded to relatively solid demand in other markets, particularly from the high-tech and automotive industries, with two 747-400 cargo aircraft that were available during their ACMI remarketing periods. These aircraft returned to ACMI service in June and July 2012, demonstrating the strong interest in our 747-400 aircraft.”
During the second quarter, an average of 1.1 Dreamlifter large cargo freighters were in CMI service for Boeing, up from 0.7 last year. CMI cargo service for DHL increased to three 767 freighters at the end of the quarter from none last year and one at the end of the first quarter. A fourth 767 freighter entered service in July, and a fifth is expected to enter service in October 2012.
Earnings in the second quarter of 2012 also reflected a reduction in maintenance expense, primarily due to the retirement of 747-200 aircraft. Results in each segment, however, were partially offset by increased crew costs and other volume-driven operating expenses compared with the second quarter of 2011. In addition, AMC Charter and Commercial Charter incurred higher aircraft ownership costs related to the deployment of 747-400 aircraft in each segment in lieu of 747-200 aircraft.
Adjusted results in the second quarter of 2012 exclude incremental costs related to the retirement of the company’s 747-200 fleet, costs incurred to refinance certain debt, and a gain on the disposal of aircraft. Adjusted results in the second quarter of 2011 exclude pre-operating expenses for the introduction of new aircraft types, including incremental costs incurred as a result of aircraft delivery delays, as well as a gain on the disposal of aircraft.
For the six months ended June 30, 2012, adjusted net income attributable to common stockholders totaled $44.9 million, or $1.69 per diluted share, compared with $38.7 million, or $1.47 per diluted share, for the six months ended June 30, 2011.
On a reported basis, first-half 2012 net income attributable to common stockholders totaled $43.7 million, or $1.65 per diluted share, compared with $34.4 million, or $1.30 per diluted share, in the first half of 2011.
Revenues totaled $784.0 million in the first six months of 2012 and $647.2 million in the first six months of 2011.
Copyright Photo: Tony Storck. Boeing 747-446 N465MC (msn 24784) is being operated as a passenger aircraft for the military charters. It is pictured touching down at Baltimore/Washington.