National Airlines (5th) (formerly Murray Air) (Orlando) is celebrating the accomplishment of becoming the latest FAA designated Flag/Domestic Air Carrier. The airline issued this statement:
National Airlines is proud to announce that on February 28, 2014, the FAA approved National to become the United States’ newest Flag/Domestic air carrier. National Airlines has a long history of supporting governments and militaries around the world — by, among other things, flying ad hoc cargo shipments in and out of crisis areas and also operating charter passenger operations for sports teams in the United States, visitors to/from Cuba, and contractors traveling between the United Arab Emirates and Afghanistan. US Flag/Domestic authority will allow National Airlines to expand its services to include conducting scheduled passenger flights throughout the United States and across the globe. It also provides an opportunity for National Airlines to continue its support of the US government travelers under the Fly America Act, whereby US government funded travelers fly on US Flag Carriers whenever available.
National Airlines maintains the highest standards of safety, security, and compliance. “This is nowhere more important than in the Middle East, which has been a significant market for National Airlines,” said Glen Joerger, National Airlines’ President. “This operating authority will further strengthen our position as an emerging passenger carrier of choice for discerning customers seeking US Flag service in the region,” he added. “This tremendous addition to National’s operating certificate reinforces our corporate commitment to serve every facet of transportation and logistics for our key clientele around the globe,” continued Joerger.
Copyright Photo: Paul Denton/AirlinersGallery.com. Boeing 757-28A N176CA (msn 24543) prepares to land at Dubai.
Icelandair Group (Icelandair) (Keflavik) reported its financial results for 2013 (all dollar figures in US dollars):
- Profit before taxes amounted to $71.0 million, up by $13.6 million or 24% between years
- Income rose between years by 13.8%
- EBITDA in the fourth quarter amounted $6.8 million, up by $0.9 million between years
- The equity ratio at year-end 2013 was 42%, as compared to 39% at year-end 2012
- Net interest-bearing debts were reduced by $95.6 million over the year and were negative at year-end in the amount of $77.5 million
- The Board of Directors has proposed a dividend payment of ISK 2,150 million to shareholders in 2014, which corresponds ISK 0.43 per share.
Björgólfur Jóhannsson, President and CEO
“The Company’s performance in 2013 is good and considerably better than our budget projected in the beginning of the year. Profit before taxes amounted to $71.0 million, up by $13.6 million between years. Like recent years, last year was characterised by profitable organic growth, which is in line with our strategy. Capacity in our route network was increased by 16% from last year, and the number of passengers increased by 12%. The Company’s largest market in international flight services is the market between Europe and North-America, which has been the principal driving force of our growth in recent years. The tourist market to Iceland has also shown significant growth, and the demand for domestic tourist services has increased rapidly. Concurrently with this expansion, companies within Icelandair Group have found opportunities for profitable growth.
The rapid growth of recent years has tested the Company’s infrastructure, which is now stronger than ever before. The main reasons for the good performance of the year include favourable external conditions, increase in tourism in Iceland and last but not the least our strong team of employees which are a very important factor in what we have achieved. It is always satisfying when things are going well, but there is no room for complacency. There are various challenges ahead that we need to address. The principal challenge is the increasing competition, and in addition our contracts with some of our classes of employees have expired, which creates some uncertainty. Nevertheless, the Company’s business model has proven sound, our finances are solid and our cash position is strong. Icelandair Group is therefore well positioned to take on the future. The Company’s budget for 2014 projects EBITDA at $145-150 million.”
Trip Report on Icelandair by the Sydney Morning Herald on a London-Halifax trip: CLICK HERE
Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 757-208 TF-FIJ (msn 25085) lands in Stockholm (Arlanda).
Delta Air Lines (Atlanta) will add new service from Seattle-Tacoma International Airport, including nonstop service to Phoenix Sky Harbor International Airport and seasonal nonstop service to Palm Springs International Airport. Delta will also add new and expanded service from Seattle/Tacoma to seasonal destinations as it continues building its domestic network.
Delta’s new Seattle/Tacoma service beginning on December 20, 2014 includes:
- Five daily flights to Phoenix
- One daily seasonal flight to Palm Springs, California
- Saturday seasonal service to Tucson, Arizona
- Saturday seasonal service to Jackson Hole, Wyoming
- One additional nonstop flight to Honolulu for a total of two daily flights
Expanded seasonal service beginning in September includes:
- One new daily nonstop flight to Anchorage, Alaska for a total of two daily flights in September and three daily flights during the summer
Delta’s new service to Phoenix, Palm Springs and Tucson will be operated by Delta Connection carrier SkyWest Airlines (St. George, Utah) using two-class, 76-seat aircraft, while Jackson Hole service will be operated with two-class, 65-seat aircraft. The expanded Honolulu and Anchorage service will be operated by Delta using Boeing 757 (above) and Boeing 737 aircraft, respectively.
By this summer, Delta will offer more than 2,500 daily international seats as part of its 79 peak-day departures to 25 destinations.
In addition to the expanded service, Delta will also adjust current arrival and departure times in Seattle/Tacoma to offer easier connections for customers traveling through the hub.
Delta recently announced expanded Seattle/Tacoma service from Anchorage; Fairbanks, Alaska; Juneau, Alaska; Las Vegas; Los Angeles; Portland, Oregon; San Diego; San Francisco; San Jose, California; and Vancouver to support its growing international gateway that currently operates nonstop flights to Amsterdam, Beijing, Paris-Charles de Gaulle, Shanghai-Pudong and Tokyo. The airline will also begin operating new nonstop international service this year to London-Heathrow beginning in March as well as Hong Kong and Seoul in June, pending government approval.
Every long-haul international Delta flight from Seattle/Tacoma now features full flat-bed seats in BusinessElite, Economy Comfort seating and entertainment on demand in every seat throughout the aircraft.
Delta currently operates 34 peak-day departures to 15 destinations from Seattle/Tacoma, and every flight offers BusinessElite/First Class and Economy Comfort seating as well as domestic Wi-Fi service. The airline has also invested $14 million in its facilities at Sea-Tac, including its recently completed lobby renovations, new Delta Sky Club, Sky Priority services, new gate area power recharging stations and expanded ticket counters.
Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 757-232 N6716C (msn 30838) pictured at SeaTac is named for Rev. Dr. Joseph E. Lowery, Dean of the Civil Rights Movement.
UPS (United Parcel Service) (UPS Airlines) (Atlanta) posted net earnings of $1.2 billion for 2013. The company issued this full financial statement for the fourth quarter and 2013:
UPS released details regarding fourth quarter 2013 results. Diluted earnings per share totaled $1.25, a $0.07 decline from 2012 fourth quarter adjusted results. Average daily package volume increased 6.0%, as total deliveries in December surged 20%. Significantly higher than predicted volume and inclement weather contributed to excess operating costs in the U.S., negatively affecting results.
During the fourth quarter 2012, UPS reported a diluted earnings per share loss of $1.83, due to an after-tax, non-cash charge of $3.0 billion to account for a mark-to-market pension adjustment.
“As the retail market shifts to a direct-to-consumer model, more and more companies are leveraging UPS solutions,” said Scott Davis, UPS chairman and CEO. “As a result, we experienced an unprecedented increase in volume, exceeding even our most optimistic plans.
“The increased volume put a strain on our network, causing delays. In response, UPS deployed additional people and equipment, placing a greater emphasis on service than cost,” Davis explained. ”UPS will make the necessary investments and operational improvements to ensure we meet the needs of the marketplace.”
The company expects full-year diluted earnings per share to be within a range of $5.05 to $5.30, an increase of 11%-to-16% over 2013 adjusted results.
UPS delivered 20 million packages per day during the fourth quarter. Total shipments in 2013 increased to 4.3 billion, a 3.9% improvement over 2012.
During the holiday period, global daily deliveries exceeded expectations by surpassing 29 million packages on five days, with peak volume exceeding 31 million on December 23. Also during this period, UPS experienced 10 days with delivery volume that exceeded the company’s previous high.
For the year ended Dec. 31, UPS generated $5.3 billion in free cash flow, producing a net income-to-cash conversion ratio of more than 120%. The company paid dividends of $2.3 billion, an increase of nearly 9% per share over the prior year, and repurchased more than 43 million shares for approximately $3.8 billion.
U.S. Domestic Package
U.S. Domestic fourth quarter revenue improved 4.2% to $9.3 billion. Daily package volume increased 5.6% with Deferred and Ground leading the way, up 8.0% and 5.8% respectively.
Total revenue per package declined 1.3%, as lower fuel surcharges, changes in product and customer mix, as well as higher service refunds, contributed to the drop. Shippers continue to utilize the UPS portfolio, choosing lower cost over faster delivery, as evidenced by more than 30% growth in UPS SurePost.
Operating profit totaled $1.2 billion as additional costs associated with a greater-than-expected surge in volume and weather led to a $178 million decline from the prior-year adjusted results. Increased compensation and benefit costs reflected the deployment of additional resources in an attempt to meet service commitments. During the quarter, UPS exceeded seasonal hiring targets by more than 30,000, deploying a total of 85,000 temporary employees. In addition, the company experienced significantly higher purchased transportation expenses.
On a reported basis, the operating loss for the fourth quarter of 2012 totaled $1.8 billion as a result of the mark-to-market pension charge.
International revenue increased 5.3% to $3.4 billion on 8.8% growth in daily package volume. UPS Export products rose 9.5% per day, driven primarily by 13% growth in Europe and significant growth in the Asia-to-Europe trade lane. Non-U.S. domestic products were up 8.2% with strong growth in Poland, Italy, and Canada. During December, the segment achieved a peak volume day above four million pieces and exceeded last year’s high on 11 days.
Export yield declined 3.4% on a currency neutral basis, as a result of lower fuel surcharges and customer preference for non-premium products. Double-digit gains in Pan-European shipments also lowered revenue per piece.
Operating profit improved 7.6% to $537 million. Operating margin expanded 30 basis points to 15.9%, compared to last year’s adjusted results.
On a reported basis, the operating loss for the fourth quarter of 2012 totaled $442 million as a result of the mark-to-market pension charge.
Supply Chain & Freight
Revenue in the segment fell 5.8% to $2.3 billion, due to declines in the Freight Forwarding unit. Operating profit was flat compared to 2012 adjusted results, as improvements in Distribution offset declines in Forwarding and UPS Freight.
On a reported basis, the operating loss for the fourth quarter of 2012 was $541 million as a result of the mark-to-market pension charge.
The Forwarding unit experienced a revenue decline resulting from decreased tonnage and revenue per kilo, in International Air Freight. The Ocean Freight business reported growth in shipments and operating margin expansion.
Distribution revenue increased over the prior year period. The retail and healthcare sectors contributed to the improved results. Global footprint expanded during the year to 284 facilities, with more than 22 million square feet of space.
UPS Freight LTL revenue increased 2.3% over the prior year driven by LTL tonnage and pricing improvements.
The company announced plans to repurchase $2.7 billion of UPS shares during 2014. Capital expenditures are anticipated to be approximately $2.5 billion. This includes accelerated deployments in operational technologies and over $500 million of increased investments in capacity expansion and hub modernization.
“While the year ended on a challenging note, we are confident in our ability to adapt and we expect much better results in 2014,” said Kurt Kuehn, UPS chief financial officer. “UPS expects balanced profitability growth across all segments in a slightly better economic environment, resulting in full-year guidance of diluted earnings per share of $5.05 to $5.30, an 11%-to-16% increase over our 2013 adjusted results.”
Copyright Photo: Keith Burton/AirlinersGallery.com. Boeing 757-24A (PF) N416UP (msn 23903) prepares to arrive in Las Vegas.
Bloomberg visits UPS’ sorting hub at UPS Worldport, Louisville, Kentucky:
Allegiant Air‘s (Las Vegas) pilots have issued this statement:
Allegiant Air’s pilots, represented by the Allegiant Air Pilots Executive Council, an employee group of Allegiant Travel Company (Las Vegas) and pilots represented by Teamsters Local Union 1224 in Wilmington, Ohio, announced plans to begin formal dialogues with Allegiant stakeholders and other influential voices in the financial community, including institutional shareholders, equity analysts, corporate lenders and insurers, in order to address operating and safety concerns that exist at the airline.
“Allegiant management has turned a deaf ear to serious operational concerns raised by the pilots,” said Capt. David Bourne, Director of Airline Division at the International Brotherhood of Teamsters. “We believe Allegiant’s financial backers have a right to know what is going on and be given a chance to weigh in on vital changes needed for Allegiant’s long-term success before it’s too late.”
“Allegiant’s low-cost model works if it can actually support the growth of the business,” Bourne said, “However, management’s lack of operational know-how and flat-out resistance to put badly needed investments into infrastructure is taking a significant toll on flight operations, which could ultimately jeopardize flight safety. It’s obvious to us that the major service disruptions over the last several months, ranging from multiple fleet shutdowns, chronic staffing and equipment shortages, significant ramp-up in 3rd party contracting for scheduled flights and sub-servicing and the shutdown of the company’s training department, all flow from the short-sighted decisions being made at the top.”
“It is very unusual for a company’s training department to be shut down,” said Dan Wells, President of Teamsters Local 1224. “Allegiant has yet to even acknowledge the training shutdown, much less show its pilots a plan for corrective action or indicate if those changes will adequately satisfy Federal Aviation Administration concerns. Many Allegiant pilots have been delayed in training for months, which we believe is driving a major increase in outsourcing due to the shortage of company pilots to fly scheduled flights and re-route equipment back to hubs and maintenance centers.”
“Management has ignored repeated requests for clarity on the training program by both the union and Allegiant’s own pilots,” Bourne said. “We’ve filed a Freedom of Information Act submission with the FAA on the matter, but the agency’s only reply was that there is an ongoing investigation at the company. In the meantime, Allegiant pilots continue to bend over backwards to work with the company to address the very significant issues that are interfering with the ability of Allegiant flight crews to do their jobs properly and service customers effectively. We are hopeful that conversations with investors and other Allegiant stakeholders will lead to a breakthrough on some of the key obstacles affecting the future of the airline.”
Copyright Photo: Jay Selman/AirlinersGallery.com. Allegiant Air’s Boeing 757-204 WL N904NV (msn 26967) arrives at the Las Vegas base.
Finnair (Helsinki) has retired its last Boeing 757. The pictured Boeing 757-2Q8 OH-LBT (msn 28170) (above) has found a new home with Air Contractors (Dublin) as EI-LBT according to Skyliner Aviation. OH-LBT made its final scheduled revenue flight from Fuerteventura to Helsinki on January 19, 2014 according to RVNspotting (see video below).
The first Finnair Boeing 757 aircraft, Boeing 757-2Q8 OH-LBO (msn 28172), was handed over to the company on October 7, 1997 and the second (OH-LBR) on October 16, 1997. The first leisure flight with the new aircraft took place on October 23, 1997 from Helsinki to La Palma and Fuerteventura in the Canary Islands.
Copyright Photo: TMK Photography/AirlinersGallery.com. Boeing 757-2Q8 OH-LBT (msn 28170) is parked at Toronto (Pearson) painted in the 2000 livery.
Ethiopian Airlines (Addis Ababa) is planning to place an order for 10 to 20 narrow body jetliners according to this report by Reuters. The African carrier is studying proposals from Airbus, Boeing and Bombardier. The company has traditionally ordered from Boeing.
The damaged 787 at Heathrow Airport returned to service in December.
Read the full report: CLICK HERE
Copyright Photo: Paul Denton/AirlinersGallery.com. Ethiopian is still operating older Boeing 757-200s on some routes. Part of the new order would replace these aircraft. Boeing 757-231 ET-ALZ (msn 30319) arrives at Dubai and was originally delivered to TWA on August 16, 199 as N720TW.
Delta Air Lines (Atlanta) has added flights to support fans traveling to the Bowl Championship Series, including the National Championship Game in Pasadena, California as well as the Rose Bowl, Sugar Bowl and Orange Bowl.
A schedule of flights and cities are below:
National Championship, Pasadena, California – January 6, 2014:
|Departure||Departure Time||Arrival||Arrival Time|
|9:45 a.m.||Los Angeles||11:40 a.m.|
|Tampa, Fla.||10 a.m.||Los Angeles||12:28 p.m.|
|Birmingham, Ala.||9:45 a.m.||Los Angeles||11:25 a.m.|
|Birmingham, Ala.||10:45 a.m.||Los Angeles||12:25 p.m.|
|Jan. 7||Los Angeles||10:05 a.m.||Tallahassee, Fla.||5:30 p.m.|
|Los Angeles||10:55 a.m.||Tampa, Fla.||6:20 p.m.|
|Los Angeles||12:55 a.m.||Birmingham, Ala.||6:55 a.m.|
|Los Angeles||09:05 a.m.||Huntsville, Ala.||3:05 p.m.|
|Jan. 7||Los Angeles||10:30 a.m.||Birmingham, Ala.||5:37 p.m.|
|Jan. 7||Los Angeles||11:30 a.m.||Atlanta||6:44 p.m.|
|Jan. 7||Los Angeles||11:40 a.m.||Birmingham, Ala.||5:38 p.m.|
|11 a.m.||Atlanta||6:14 p.m.|
|12:20 p.m.||Atlanta||7:32 p.m.|
Rose Bowl, Pasadena, California – January 1, 2014:
|Departure Time||Arrival||Arrival Time|
|Dec. 31||Detroit||10 a.m.||Los Angeles||12:11 p.m.|
|10 a.m.||Detroit||5:28 p.m.|
|12:25 p.m.||Detroit||7:30 p.m.|
|12:30 p.m.||Detroit||7:58 p.m.|
Sugar Bowl, New Orleans – January 2, 2014:
|Date||Departure||Departure Time||Arrival||Arrival Time|
|10:30 a.m.||New Orleans||12:10 p.m.|
|9 a.m.||Oklahoma City||10:50 a.m.|
Orange Bowl, Miami, January 3, 2014:
|Date||Departure||Departure Time||Arrival||Arrival Time|
|Jan. 2||Columbus, Ohio||9 a.m.||Miami||11:30 a.m.|
|Jan. 5||Miami||9 a.m.||Columbus, Ohio||11:45 a.m.|
Delta traditionally adds capacity to support the strong demand for nonstop service associated with postseason sporting events.
Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 757-232 N6715C (msn 30486) with the special Grammy Awards logo lands in Baltimore/Washington (BWI).
US Airways (Phoenix) will join oneworld® on March 31, 2014, following completion of its merger with alliance founding member American Airlines (Dallas/Fort Worth). All its regional affiliates, operating under the US Airways Express brand, will also transition to oneworld at the same time.
The entry into oneworld on March 31, 2014 will follow immediately upon their exit from the Star Alliance with the final flights on March 30, 2014.
Copyright Photo: Nick Dean/AirlinersGallery.com. The Boeing 757-200s and Airbus A319s currently in the Star Alliance color scheme are expected to receive the oneworld version shortly. Boeing 757-2B7 N936UW (msn 27244) arrives at Seattle-Tacoma International Airport (SEA).
United Airlines (Chicago) today announced it is the first and only airline to offer premium-cabin, flat-bed seats on every scheduled trans-continental flight between New York’s John F. Kennedy International Airport and San Francisco and between New York JFK and Los Angeles.
The revamped p.s. aircraft offer 28 180-degree flat-bed United BusinessFirst seats, offering up to 6’4″ of sleeping space and more room for storage; 42 extra-legroom United Economy Plusseats; and 72 United Economy seats.
Designed to give customers an experience comparable to long-haul, international flights, United’s refurbished p.s. aircraft also offer:
- Inflight Wi-Fi
- Personal, on-demand entertainment at every seat - with 15.4″ monitors in United BusinessFirst and 9″ monitors in United Economy - offering hundreds of movies and television shows, plus other entertainment options
- Power outlets and USB ports at every seat
- Two additional inches of legroom in United Economy Plus compared to Economy Plus legroom on pre-renovation p.s. service
- Multi-course meals in United BusinessFirst on most flights
- Wine selections recommended by Doug Frost, United’s Master Sommelier and Master of Wine, including half bottles of premium wines for purchase in United Economy
“Our investment in these aircraft and in the p.s. service will add greatly to our flyer-friendly customer experience on these coast-to-coast flights,” said Jeff Foland, United’s executive vice president of marketing, technology and strategy. “This is just one more example of the many things we are doing to provide greater onboard comfort and convenience on every United flight.”
Customer Service Investments
United’s renovated p.s. aircraft are among the many investments the airline is making to enhance its customers’ experience in the air and on the ground. United also offers:
- Premium-cabin, flat-bed seats on every scheduled long-haul international flight from the continental United States
- Satellite-fed Wi-Fi on more than 130 aircraft so far, with nearly all of United’s mainline fleet outfitted with Wi-Fi by the end of 2014
- An all-new mobile application for the iOS 7 platform, offering customers innovative new features, better functionality and an improved touch-friendly design
- Live television on more than 200 aircraft, the world’s largest fleet of aircraft with live television
- Significantly upgraded United Club lounges in Chicago O’Hare Terminal 2, Seattle and San Diego, with improved amenities, modern interiors, more power outlets and complimentary snacks and Wi-Fi
Copyright Photo: Michael B. Ing/AirlinersGallery.com (all others by United). Boeing 757-224 WL N19141 (msn 30354) departs from Los Angeles International Airport.
US Airways (Phoenix) will offer new nonstop daily service from the airline’s international gateway at Philadelphia International Airport (PHL) to Scotland’s capital city of Edinburgh. For the first time, the airline will operate flights to and from Edinburgh Airport (EDI) on 176-seat dual-class Boeing 757-200 aircraft between May 23, 2014 and October 1, 2014.
The flight schedule is as follows:
|Flight #||Origin||Destination||Dep. Time||
|Start Date||End Date|
|May 23, 2014||Sept. 30, 2014|
|May 24, 2014||Oct. 1, 2014|
*Flight arrives the following day.
With the new service, US Airways will operate 472 weekday departures and serve 118 destinations in the U.S., Canada, Latin America, Mexico, Europe and the Caribbean from Philadelphia International Airport.
Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 757-2B7 N200UU (msn 27809) taxies to the runway at the Charlotte hub.
Delta Air Lines (Atlanta) issued the following statement in response to the settlement of litigation brought by the U.S. Department of Justice challenging the merger of American Airlines and US Airways.
“Delta welcomes the settlement agreement and looks forward to the opportunity to acquire slots that will be divested under the agreement, particularly at Washington-Reagan National Airport. Delta is the airline best positioned to continue competitive nonstop flights from Reagan National to small- and mid-sized cities that could otherwise see service reduced or eliminated, which should be a strong consideration in the divestiture.”
Copyright Photo: Bruce Drum/AirlinersGallery.com. Delta’s Boeing 757-232 N6713Y (msn 30777) is pictured in action at Seattle-Tacoma International Airport.
United Airlines (Chicago) reported third-quarter 2013 net income of $590 million, an increase of 13.5 percent year-over-year, or $1.51 per diluted share, excluding $211 million of special charges. Including special charges, UAL reported third-quarter 2013 net income of $379 million, or $0.98 per diluted share.
- UAL generated $10.2 billion of revenue in the third quarter of 2013.
- United’s consolidated passenger revenue per available seat mile (PRASM) increased 2.7 percent in the third quarter compared to the third quarter of 2012.
- Third-quarter consolidated unit costs (CASM), holding fuel rate and profit sharing constant and excluding special charges and third-party business expense, increased 3.6 percent year-over-year on a consolidated capacity (available seat miles) reduction of 1.1 percent. Third-quarter consolidated CASM increased 1.2 percent year-over-year.
- United’s third-quarter consolidated fuel efficiency (gallons per available seat mile) improved 1.1 percent year-over-year, due primarily to replacing older aircraft with highly efficient new Boeing 737-900ERs and Boeing 787 Dreamliners.
- UAL ended the third quarter with $6.7 billion in unrestricted liquidity.
“We have significantly improved our operations, customer service and product, and are now competitive on all those dimensions. I want to thank my co-workers as we work together to deliver on our promise of making United flyer friendly,” said Jeff Smisek, chairman, president and chief executive officer. “However, we are not satisfied with our financial performance, and are taking prompt actions to increase our revenue and operate more efficiently across the company.”
Third-Quarter Revenue and Capacity
For the third quarter, total revenue was $10.2 billion, an increase of 3.2 percent compared to the same period in 2012. Third-quarter consolidated passenger revenue increased 1.6 percent year-over-year to $8.9 billion, on a consolidated capacity decrease of 1.1 percent year-over-year. Other revenue in the third quarter increased 25.0 percent year-over-year to $1.1 billion and third-quarter cargo revenue decreased 19.1 percent versus the third quarter of 2012 to $199 million.
Consolidated revenue passenger miles (RPMs) decreased 0.3 percent on a consolidated capacity decrease of 1.1 percent year-over-year, resulting in a consolidated load factor of 85.9 percent in the third quarter.
Third-quarter consolidated PRASM increased 2.7 percent compared to the same period in 2012. Consolidated yield for the third quarter increased 1.9 percent year-over-year.
“This quarter my co-workers consistently delivered solid operational performance, and our customer satisfaction scores continue to rise,” said Jim Compton, UAL’s vice chairman and chief revenue officer. ”We are, however, disappointed by the pace of our revenue improvements, and we are taking numerous actions to improve our performance to more swiftly realize our full revenue potential.”
Third-quarter passenger revenue and period-to-period comparisons of related statistics for UAL’s mainline and regional operations are as follows:
|3Q 2013 Passenger
Total operating expenses increased $11 million, or 0.1 percent, in the third quarter versus the same period in 2012. Excluding special charges, third-quarter total operating expenses increased $314 million, or 3.4 percent, year-over-year.
Third-quarter consolidated CASM increased 1.2 percent year-over-year. Third-quarter consolidated CASM, excluding special charges and third-party business expense, increased 2.9 percent compared to third-quarter 2012. Third-party business expense was $205 million in the third quarter of 2013.
In the third quarter, consolidated CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 3.6 percent compared to the third quarter of 2012.
“We are committed to operating more efficiently across all aspects of our business,” said John Rainey, UAL’s executive vice president and chief financial officer. “We continue to improve our balance sheet and to make return-driven investments in our business, both of which are critical to creating long-term economic value for our stakeholders.”
Liquidity and Cash Flow
UAL ended the third quarter with $6.7 billion in unrestricted liquidity, including $1.0 billion of undrawn commitments under its revolving credit facility. During the third quarter, UAL generated $237 million of operating cash flow. The company’s gross capital expenditures and purchase deposits for the quarter were $598 million, and the company made debt and capital lease principal payments of $253 million in the third quarter.
Third-Quarter 2013 Accomplishments
Operations, Co-workers and Customer Service
- United Airlines reported a third-quarter mainline on-time arrival rate (domestic and international) of 78.9 percent. The on-time arrival rate is based on flights arriving within 14 minutes of scheduled arrival time. United co-workers earned cash-incentive payments of $9 million for on-time performance during the third quarter.
- The company reached tentative agreements on new joint collective bargaining agreements with the International Association of Machinists (IAM) for the more than 28,000 fleet service, passenger service and storekeeper employees.
- United’s pilots established an integrated seniority list, and United announced it offered recall to nearly 600 pilots currently on furlough to address the airline’s future staffing needs.
- United neared completion of its comprehensive customer service training program for all customer-facing co-workers worldwide with more than 90 percent of mainline and United Express flight attendants, airport agents and reservation agents trained through the third quarter.
Network, Fleet and Sustainability
- In the third quarter, the company announced it is expanding its leading worldwide route network and will launch future nonstop service from San Francisco to Chengdu, China, the fourth-largest Chinese city, and from Chicago to Edinburgh, Scotland, beginning in June 2014. This quarter, United launched new nonstop service to St. Lucia, as well as additional nonstop service to Anchorage, Alaska; Austin, Texas; Traverse City, Mich.; and Saskatoon, Saskatchewan, Canada. The company also announced it is adding three other cities to its network: Elmira, N.Y., Topeka, Kan.; and Sun Valley, Idaho, as well as additional service to Fort Myers, Fla.; Hayden, Colo.; Indianapolis; and State College, Pa.
- The company took delivery of seven new highly efficient aircraft, including six Boeing 737-900 ERs and one Boeing 787 Dreamliner, and removed from service seven Boeing 757-200s.
- A United Boeing 737-800 aircraft retrofitted with the new Split Scimitar Winglet began test flights. United is the North American launch customer for the Next-Generation 737 advanced winglet that improves the efficiency of the company’s 737 fleet by approximately 2 percent while simultaneously reducing carbon emissions, and the company will begin installing the new winglets across its 737 fleet by year end.
- United was named the Eco-Aviation “Airline of the Year” Gold Winner by Air Transport World (ATW) magazine.
Product, Loyalty Program and Facilities
- United debuted its new brand campaign, featuring its iconic “Fly the Friendly Skies” tagline, reinterpreted for today’s travelers. The new campaign explains United’s commitment to being “user-friendly,” which to customers today means the combination of service, technology and product enhancements.
- The company continued outfitting aircraft with global satellite Wi-Fi across its entire mainline fleet, offering inflight connectivity on long-haul international flights. The airline now has more than 115 Wi-Fi-equipped aircraft and is outfitting about one aircraft per day with global satellite Wi-Fi.
- The airline expanded its offering of live television to more than 200 aircraft, offering customers more than 100 channels of live programming while in-flight. United operates more live television-equipped aircraft than any other airline in the world.
- United released refreshed applications for iPhone, Android and BlackBerry 10 that include streamlined user interfaces along with a new feature that enables customers to manage their travel in real time if a flight delay or cancellation should occur.
- United continued retrofitting its p.s. (Premium Service) transcontinental aircraft that fly from New York to Los Angeles and San Francisco. The airline already has retrofitted 12 of its 15 p.s. aircraft with the latest cabin interiors, premium-cabin flat-bed seats, and personal on-demand entertainment and Wi-Fi throughout the aircraft.
- United debuted its Choice Menu “Bistro on Board” featuring new fresh food menu options available for sale to Economy customers on flights longer than three-and-a-half hours within North America and to and from Central America. United is providing customers innovative selections made with high-quality ingredients that will change seasonally.
- United MileagePlus and Marriott Rewards® joined forces to provide their most loyal members with unprecedented travel benefits. Through the RewardsPlus program, United customers who are Premier Gold MileagePlus members or above can enjoy Marriott Gold Elite status and benefits. The program also offers Marriott Rewards Platinum Elite members MileagePlus Premier Silver status.
- The company teamed up with Mercedes-Benz USA to provide innovative new benefits exclusively to United’s most frequent flyers seeking a luxury driving experience. MileagePlus Premier members receive incentives and 25,000 bonus miles when purchasing or leasing certain new Mercedes-Benz vehicles. In addition, United and Mercedes partnered to offer United’s Global Services customers tarmac transfer service at the airline’s Chicago and Houston hubs.
- The company opened its new United Club lounge in Terminal 2 at San Diego International Airport, the third club to feature the airline’s new design concept.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. United is gradually phasing out its older Boeing 757-200s with seven retired in this quarter alone. Ex-Continental Boeing 757-224 WL N17122 (msn 27564) departs from Los Angeles.
Fly Jamaica Airways (Kingston) will launch a new route to Toronto (Pearson) on October 8.
The new airline commenced scheduled services on February 14, 2013 between Kingston, Jamaica and New York (JFK) with this former ATA Airlines Boeing 757-23N N524AT (msn 30233).
Copyright Photo: Brian McDonough/AirlinersGallery.com.
Delta Air Lines (Atlanta) is one of the U.S. airlines leading the stampede to find new revenue sources to “enhance the travel experience”.
According to the airline, Delta will begin offering a new travel option for SkyMiles customers which provides access to some of the airline’s most popular enhanced travel extras such as checked bags, priority boarding and seat selection for $199. The new package, called Smart Travel Pack, introduces a practical and affordable way for customers to add a suite of extra services and additional comfort for their upcoming business or personal travel.
An eligible SkyMiles member who purchases the Smart Travel Pack will receive:
- Free first checked bag for each passenger traveling in the same reservation
- Priority Boarding to give the entire party more time to get onboard and get settled in their seats with carry-on baggage stowed
- Access to Preferred Seats to allow selection of bulkhead or exit row seats or access aisle or window seat toward the front of the plane at no additional charge
- Discounted Economy Comfort which gives customers the option to upgrade to Economy Comfort for 50 percent less on domestic flights and 25 percent less on international flights
- 20 percent more bonus miles for the SkyMiles member who purchases the Smart Travel Pack to get them to their next Award Ticket faster
Package features are valid for the SkyMiles member who purchases the Smart Travel Pack during the promotion period and up to eight friends or family members traveling with them with the exception of bonus miles which are only awarded to the primary purchaser’s SkyMiles account.
Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Former TWA/American Airlines Boeing 757-231 N709TW (msn 28479) in the SkyTeam alliance color scheme, taxies at Shannon.
United Airlines (Chicago) has announced will launch nonstop summer seasonal service between its Chicago hub at O’Hare International Airport and Edinburgh, Scotland, beginning on May 22, 2014, subject to government approval. This will be the first scheduled nonstop service between the two cities.
The flights will operate five times weekly from May 22 to June 11, daily between June 12 and September 1 and four times weekly between Sept. 2 and Oct. 5, 2014.
The flights will depart Chicago O’Hare at 6 p.m. (1800), arriving in Edinburgh at 7:45 a.m. (0745) the following day. The return flights will depart Edinburgh at 10:25 a.m. (1025), arriving in Chicago at 1 p.m. (1300) the same day (all times local). Flight times are seven hours, 45 minutes eastbound and eight hours, 35 minutes westbound.
The flights will operate using Boeing 757-200 aircraft with a total of 169 seats – 16 flat-bed seats in United BusinessFirst and 153 in United Economy, including 45 Economy Plus seats with added legroom and increased personal space.
United offers more nonstop service to more destinations from its Chicago O’Hare hub than any other carrier and has added 11 new routes from Chicago since the beginning of 2013.
United currently operates year-round nonstop service from its Newark Liberty International Airport hub to both Edinburgh and Glasgow, having started service to Scotland in 1998.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 757-222 N521UA (msn 24891) climbs away from Los Angeles International Airport.
Icelandair (Keflavik) has announced a major expansion for 2014 and is adding three new destinations, namely Edmonton and Vancouver in Canada and Geneva in Switzerland. The airline is also adding three additional Boeing 757s. The flag carrier issued this statement:
The Icelandair schedule for 2014 is the biggest in the company‘s history, increasing by 18% from this year. Three new destinations will be added and frequency increased to several cities in North-America and Europe. Number of passengers is estimated at over 2.6 million in 2014, compared to just under 2.3 million this year. In 2014, three Boeing 757 aircraft will be added to the fleet, enlarging it from 18 to 21 aircraft.
Icelandair has seen strong organic growth in the past few years and the 2014 schedule is double in size compared to the one in 2009. Departures from Iceland have grown from 4.500 in 2009 up to 9000 next year, and passenger numbers in 2009 were 1.3 million or half of next year’s estimate.
Besides opening up routes to Edmonton, Vancouver and Geneva, Icelandair will add frequency to most of its current destinations. 21 weekly flights will be added on European routes and 14 weekly flights to North America or 35 flights in total, from 220 weekly departures from Iceland this year to 254 departures next summer.
Flights to Edmonton, capital of Alberta, will start on March 26, 2014 and continue until January 2015, four times a week. The Edmonton economy is strong with the 1.2 million inhabitants.
The Vancouver twice-weekly flights start on May 13, 2014 and continue until October 12, 2014. Vancouver, western Canada‘s largest city with a population of 2.3 million.
The Geneva service starts on May 24, 2014 and continues twice-weekly until September 23, 2014. Geneva is an historic city and center for many international organizations with a multinational population of 1,1 million situated close to the French border.
Copyright Photo: Andi Hiltl/AirlinersGallery.com. Formerly operated by American Airlines as N637AM, Boeing 757-223 TF-ISF (msn 24595) joined the Icelandair fleet on January 9, 2013. TF-ISF is seen departing from Zurich today (September 3).
Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) have received tentative U.S. Department of Transportation (DOT) (Washington) antitrust immunity for its proposed trans-Atlantic alliance. As part of the deal, Delta is acquiring a 49 percent stake in Virgin Atlantic for $360 million from Singapore Airlines (Singapore).
All other parties will have 14 days to comment on the DOT decision, otherwise it will become final.
Read the full report from Reuters: CLICK HERE
Top Copyright Photo: Brian McDonough/AirlinersGallery.com. Delta’s Boeing 757-232 N650DL (msn 24390) banks on the final turn on the River Approach into Washington (Reagan National).
Have you seen the “new look” AirlinersGallery.com?
Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A340-313 G-VAIR (msn 164) climbs away from Tokyo (Narita) painted in the updated 2010 livery which also includes airline titles on the fuselage underside.
Air China Cargo (Beijing) intends to add four Boeing 757-200 freighters to its fleet. Precision Conversions has won the contract to convert the aircraft. Precision Conversions issued this statement:
Precision Conversions, LLC is very pleased to announce that the company has won a contract to provide Air China Cargo Company Ltd., a Joint Venture between Air China (Beijing) and Cathay Pacific Airways (Hong Kong), a total of four (4) full 15-cargo position 757-200PCFs. The first aircraft was inducted for modification at the Taikoo Aircraft Engineering Co. Ltd. (TAECO) maintenance facility in Xiamen on July 31. The second aircraft will commence modification in November. The remaining two aircraft are being placed in production slots for early 2014. All four aircraft will be used for express package transportation in China. Air China Cargo Company Ltd., is based in Beijing, China and operates to 36 cities in 27 countries.
To date, Precision Conversions has redelivered a total of thirty six (36) full 15 cargo position 757-200PCF freighters to customers operating in Europe, North and South America, India, Africa, and P.R. China. Precision also redelivered one (1) 757-200PCF Combi aircraft variant earlier this year.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Air China’s Boeing 757-2Y0 B-2826 (msn 26155), still carrying passengers, prepares to touch down at the Beijing (Capital) hub.
Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Los Angeles and Honolulu beginning on October 30, 2013.
In March 2010, the company announced it signed a forward purchase agreement to acquire six Boeing 757-200 aircraft that enabled Allegiant to expand its leisure travel strategy into Hawaii with flights beginning in summer 2012.
Allegiant currently operates a fleet of 57 McDonnell Douglas DC-9-80 (MD-80) aircraft, six Boeing 757-200 aircraft, and one Airbus A319 aircraft. The Company has agreements to acquire eight additional Airbus A319 aircraft and nine Airbus A320 aircraft, which will be introduced throughout 2013 and the beginning of 2014.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 757-204 N906NV (msn 27236) lands at the Las Vegas home base.
American Airlines (Dallas/Fort Worth) today relaunched daily nonstop service between New York’s John F. Kennedy International Airport (JFK) and Dublin Airport (DUB). The new flight is in addition to American’s existing nonstop service from Chicago O’Hare International Airport (ORD) to Dublin and complements its 12 other daily nonstop flights from JFK to Europe. The route will be operated with a two-class Boeing 757-200 with 181 seats.
Copyright Photo: Dave Glendinning/AirlinersGallery.com. Boeing 757-223 WL N174AA (msn 31308) in the Oneworld scheme taxies at London (Heathrow).
US Airways (Phoenix) today begins daily, nonstop, summer service from its international gateway at Philadelphia following a four-year hiatus to Shannon, Ireland. The airline will operate flights to SNN on 176-seat dual-class Boeing 757-200 aircraft until September 6, 2013. The seasonal service complements US Airways’ existing flights to Dublin, which the airline serves year-round from Philadelphia and during the summer from its largest hub in Charlotte, North Carolina.
The flight schedule is as follows:
|Philadelphia International Airport (PHL) –||Shannon Airport (SNN) – Philadelphia|
|Shannon Airport (SNN)||International Airport (PHL)|
|776||9:05 p.m.||8:40 a.m.*||777||11:35 a.m.||2:05 p.m.|
*Flight arrives next day. First day of service from Shannon is May 23, 2013.
Copyright Photo: Marcelo F. De Biasi. Ex-America West Boeing 757-2G7 N909AW (msn 24522) climbs away from Washington (Reagan National).
Allegiant Air (Las Vegas) plans to temporarily suspend service to Hawaii from seven of the nine mainland cities after the summer season.
Allegiant will suspend flights beginning on August 14 from Boise, Idaho; Eugene, Oregon; Phoenix; Spokane, Washington; and Fresno, Stockton and Santa Maria, all in California according to this report by the Star Advertiser.
The company has recently been struggling with some well-publicized Hawaii cancellations due to mechanical issues affecting its Boeing 757-200 fleet.
Read the full report: CLICK HERE
Copyright Photo: Ton Jochems. Boeing 757-204 N901NV (msn 26963) touches down at the Las Vegas base after arriving from Hawaii.
American Airlines (Dallas/Fort Worth) on April 1 launched daily service between Dallas/Fort Worth and Lima, Peru.
In addition, American also serves Lima from its hub in Miami.
Daily DFW-LIM Service Schedule
- Departs DFW at 5:25 p.m.
- Arrives at LIM at 12:20 a.m. the following day
- Departs LIM at 1:40 a.m.
- Arrives at DFW at 8:55 a.m.
American Airlines will operate Boeing 757-200 aircraft on this new route.
Beginning April 11, American will add new service between Chicago O’Hare and Dusseldorf, Germany, and will also add service to Europe between New York – JFK and Dublin, Ireland, beginning June 12. From its largest hub in Dallas/Fort Worth, American will also launch its first-ever service to Seoul, South Korea, on May 9.
Copyright Photo: Bruce Drum. Boeing 757-223 WL N664AA (msn 25298) in the special Susan G. Komen livery arrives at the Miami International Airport hub.
Oman Air (Muscat), the national carrier of the Sultanate of Oman has announced, effective on March 1, 2013, the successful launch of its new joint venture freighter operation partnership with DHL.
Oman Air Cargo has signed an exclusive Block Space Agreement with DHL for utilizing DHL’s capacity in both directions of its operation between Muscat (MCT) and Dubai (DXB).
Oman Air Cargo has been rapidly growing since its launch in 2009, making significant inroads into online and off-line markets. Further to the current partnership with DHL on the DXB-MCT-DXB route, Oman Air Cargo is looking at widebody capacity opportunities in partnership with other operators and airlines, connecting from airports in Muscat and Salalah, as part of its expansion program.
DHL will operate a Boeing 757-200 PCF on a weekly schedule into Muscat, a partnership between DHL and Oman Air Cargo.
The new service will operate every Friday, using DHL’s Boeing 757-200 PCF aircraft, with flights from Dubai to Muscat departing at 16.30 and arriving at 17.30, and flights from Muscat to Dubai departing at 18.30 and arriving at 19.30. Flight capacity stands at 25,000kgs/150m3.
Top Copyright Photo: Paul Denton. Oman Air added four Embraer ERJ 175s for its regional passenger routes. Embraer ERJ 170-200STD (ERJ 175) A40-ED (msn 17000354) arrives at Dubai.
Bottom Copyright Photo: DHL.
FedEx Express (Memphis) has agreed to acquire 15 Boeing 757-200s from United Airlines (Chicago) and convert the passenger aircraft to freighters according to this report by Bloomberg. FedEx also secured options for another 16 757-200s. Deliveries will be 2013 through 2015.
Read the full report: CLICK HERE
Copyright Photo: Brian McDonough. Former USAir/US Airways Boeing 757-2B7 (F) N901FD (msn 27122, ex N610AU) now with FedEx as a freighter, completes its final approach into Washington (Dulles).
Editor’s “To The Point” Observation: FedEx currently operates 67 Boeing 757-200 converted freighters. The first (the pictured N901FD) was added to the cargo fleet on May 9, 2008. The newer 757s have been replacing the older Boeing 727s. FedEx has 30 727-200Fs still in service so it is likely it will take the full option.
Delta Air Lines (Atlanta) will now launch daily Boeing 757-200 service early on the new Los Angeles-San Jose, Costa Rica route on July 1 per Airline Route.
Copyright Photo: Michael B. Ing. Boeing 757-212 N750AT (msn 23126) climbs away from Los Angeles International Airport. The airframe was originally delivered to Singapore Airlines as 9V-SGL on November 26, 1984. Delta acquired the aircraft from ATA Airlines as N750AT on September 19, 1996.
Delta Air Lines (Atlanta) will offer new and expanded summer service from Montana to Atlanta and Los Angeles, effective on June 22, 2013.
The new service changes include:
- Atlanta to Bozeman expanded from twice per week to three weekly
- Atlanta to Kalispell expanded from once per week to twice weekly
- New Saturday service from Atlanta to Missoula
- New Saturday service from Los Angeles to Bozeman
Delta’s new service between Atlanta and Bozeman, Kalispell and Missoula, will be operated with Boeing 737-800 aircraft. The fourth flight, between Bozeman and Los Angeles, will be operated by Delta Connection carrier SkyWest Airlines (St. George) using a 76-seat two-class Bombardier CRJ900.
Returning summer seasonal service between Atlanta and Bozeman will operate Wednesdays and Saturdays on a Boeing 757-200, while Atlanta-Kalispell service will operate Saturdays on Boeing 737-800 aircraft.
Delta has served Montana since 1927 and offers more flights statewide than any other airline. During the peak summer travel season, Delta serves eight Montana communities with more than 1,300 monthly departures and offers 54 percent more seats than its largest competitor. In 2012, the airline carried 1.3 million passengers to and from Montana.
Montana markets Delta provides service include: Butte, Billings, Bozeman, Great Falls, Helena, Kalispell, Missoula and West Yellowstone.
Delta’s new and returning summer seasonal flights in Montana are scheduled as follows:
Bozeman/Atlanta Operated on a Boeing 737-800
|Atlanta – 2:55 p.m.||5:05 p.m.||June 22-Aug. 24||Saturday Only|
|Bozeman – 8:15 a.m.||2:00 p.m.||June 23-Aug. 25||Sunday Only|
Bozeman/Atlanta Operated on a Boeing 757-200
|Atlanta – 11:00 a.m.||1:10 p.m.||June 22-Aug. 31||Wednesday/Saturday|
|Bozeman – 2:00 p.m.||7:47 p.m.||June 22-Aug. 31||Wednesday/Saturday|
Bozeman/Los Angeles Operated by Delta Connection carrier Skywest on a CRJ900
|Los Angeles – 9:00 a.m.||12:15 p.m.||June 22-Aug. 24||Saturday Only|
|Bozeman – 12:50 p.m.||2:05 p.m.||June 22-Aug. 24||Saturday Only|
Kalispell/Atlanta Operated on a Boeing 737-800
|Atlanta – 3:00 p.m.||5:38 p.m.||June 22-Aug. 24||Saturday Only|
|Kalispell – 8:00 a.m.||2:07 p.m.||June 23-Aug. 25||Sunday Only|
Kalispell/Atlanta Operated on a Boeing 737-800
|Atlanta – 9:50 a.m.||12:28 p.m.||June 22-Aug. 31||Saturday Only|
|Kalispell – 1:10 p.m.||7:17 p.m.||June 22-Aug. 31||Saturday Only|
Missoula/Atlanta Operated on a Boeing 737-800
|Atlanta – 10:25 a.m.||1:03 p.m.||June 22-Aug. 31||Saturday Only|
|Missoula – 1:45 p.m.||7:51 p.m.||June 22-Aug. 31||Saturday Only|
Copyright Photo: Michael B. Ing. Boeing 757-232 N610FL (msn 22817), formerly the pink Breast Cancer Awareness 757 aircraft, climbs away from Ted Stevens Anchorage International Airport (ANC).
Air China (Beijing) has announced it will add Geneva starting on May 7, 2013. The flag carrier will offer nonstop four-times weekly Beijing – Geneva service using the Airbus A330-200. That will make Air China the only carrier offering nonstop rotations between Beijing and Geneva. The Beijing – Geneva route will become East Asia’s first direct route to Geneva, offering an additional flight option to travelers to and from Tokyo, Seoul, Hong Kong, Bangkok and Manila.
The flight numbers of the Beijing – Geneva service will be CA 861/862. The four-times weekly flight leaves Beijing at 13:30 and arrives at 18:25 in Geneva on the same day. The return flight is expected to take off from Geneva at 20:25 and arrive at the Beijing Capital International Airport at 12:55 the next day.
The Chinese carrier is also retiring the Boeing 757-200 from international service on March 31, 2013 on the Chengdu-Karachi route per Airline Route.
Top Copyright Photo: Dave Glendinning. Airbus A330-243 B-6076 (msn 797) in the special Zichen Hao livery taxies to the gate at London (Heathrow).
Bottom Copyright Photo: Michael B. Ing. Air China’s Boeing 757-2Z0 B-2820 (msn 25885) arrives back at the Beijing hub.
ATI-Air Transport International (Little Rock and Toledo) is planning to retire its last McDonnell Douglas DC-8 from its operations in early 2013. Parent Air Transport Services Group is acquiring three Boeing 757-200 combi aircraft to replace the remaining four ATI DC-8s in early 2013 via Cargo Aircraft Management (CAM). ATSG issued this statement:
Air Transport Services Group, Inc. said its aircraft leasing subsidiary has reached agreement with National Air Cargo Group, Inc., for the purchase of three Boeing 757-200 aircraft that have been modified for combi (combined passenger and main-deck cargo) service.
ATSG said it anticipates that its subsidiary, Cargo Aircraft Management (CAM), will take delivery of one of the three 757 combi aircraft in December 2012, and the other two in early 2013.
Joe Hete, President and CEO of ATSG, said, “The purchase of these three 757 combis from National, plus the one 757 combi we already own, will complete our commitment to replace our four McDonnell-Douglas DC-8 combis with more modern fuel-efficient aircraft that better meet the requirements of our principal combi customer, the U.S. Military’s United States Transportation Command (USTRANSCOM). We look forward to providing USTRANSCOM with the improved operating performance and lower costs of the 757, as well as its greater passenger capacity. We are proud to be USTRANSCOM’s sole combi operator, serving primarily remote installations around the world that rely on the combi’s unique cargo and passenger transport capabilities.”
The 757 combis have a 34 percent lower fuel burn, ten more passenger seats and the same number of cargo pallet positions as the DC-8 combis they will replace. The combis will be owned by CAM and leased to and operated by ATSG’s airline subsidiary Air Transport International (ATI), under ATI’s contract with USTRANSCOM. Along with the three aircraft, CAM is also purchasing a spare 757-200 engine and some ancillary aircraft equipment from National.
As part of its fleet modernization program, prior to ATI’s latest combi contract award from USTRANSCOM that took effect in October 2012, CAM purchased a Boeing 757-200 for combi conversion. That aircraft is undergoing certification testing for the Federal Aviation Administration, and is due to complete that process and begin USTRANSCOM service early next year. All three of the National combis were designed and modified to meet or exceed the same FAA and USTRANSCOM requirements, including ETOPS (Extended-range Twin-engine Operational Performance Standards) certification essential for service to USTRANSCOM’s combi destinations.
Upon the retirements of the four DC-8 combis, ATSG’s fleet will consist entirely of 757-200, 767-200 and 767-300 aircraft, all of which require only two crew members, and which share a common pilot type rating.
ATSG noted that, as a result of its decision to acquire one of the 757 combis in 2012, it has adjusted its previously disclosed guidance for aircraft-related capital expenditures in 2012 and 2013 to approximately $170 million and $95 million, respectively.
ATSG, through its leasing and airline subsidiaries, is the world’s largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. ATSG’s subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; Capital Cargo International Airlines, Inc.; and Airborne Maintenance and Engineering Services, Inc.
ATI Fleet Overview: CLICK HERE
Copyright Photo: Antony J. Best. McDonnell Douglas DC-8-73 (F) N602AL (msn 45991) arrives at Stansted Airport north of London.
Icelandair (Keflavik) and Boeing (Chicago) have announced a commitment today for 12 737 MAXs, valued at more than $1.2 billion at list prices. The commitment by the Icelandic carrier includes 737 MAX 8s and 9s. Boeing looks forward to working with Icelandair to finalize the details, at which time the order will be posted as a firm order to the Boeing Orders & Deliveries website.
The 737 MAX is a new-engine variant of the world’s best-selling airplane and builds on the strengths of today’s Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. Airlines operating the 737 MAX will see a 13 percent fuel-use improvement over today’s most fuel-efficient single-aisle airplanes.
The 737 MAX also features the new Boeing Sky Interior. According to Boeing, “the sleek interior boasts modern lines, a spacious cabin with more headroom and LED lighting that offers vibrant color options.”
Icelandair Group currently operates an all-Boeing fleet of 23 757-200/300 airplanes for both its passenger and cargo operations. The Icelandic carrier has used the geographical location of its Keflavik-based hub mid-way between North America and Europe, as an opportunity to build an ever-growing network of more than 25 international destinations.
Copyright Photo: Antony J. Best. The new Boeing 737 MAX aircraft will replace the older Boeing 757-200 aircraft such as the pictured Boeing 757-208 TF-FIJ (msn 25085) on finals at London (Heathrow).
US Airways (Phoenix) resumes daily nonstop service from its international gateway at Philadelphia to Shannon, Ireland on May 22, 2013 after a nearly four-year hiatus. The airline will operate flights to Shannon on 176-seat dual-class Boeing 757-200 aircraft until September 3, 2013. The seasonal service complements US Airways’ existing year-round daily service to Dublin, Ireland from Philadelphia and seasonal daily service from its hub in Charlotte, North Carolina.
The flight schedule is as follows:
|Philadelphia International Airport (PHL) – Shannon Airport (SNN)|
|776||9:05 p.m.||8:40 a.m.*|
|Shannon Airport (SNN) – Philadelphia International Airport (PHL)|
|777||11:35 a.m.||2:05 p.m.|
|*Flight arrives next day.|
Copyright Photo: Jay Selman. Boeing 757-225 N924UW (msn 22204) taxies to the runway at Charlotte Douglas International Airport (CLT).
United Airlines (Chicago) today announced it will inaugurate five-times-weekly nonstop service between its Chicago O’Hare hub and Shannon, Ireland, from June 6 to August 26, 2013, subject to government approval.
The airline will also launch a third daily service between its Houston Bush Intercontinental hub and London Heathrow, effective on March 30, 2013.
The Chicago-Shannon flight will depart Chicago O’Hare five times each week at 6 p.m. (1800), arriving in Shannon at 7:30 a.m. (073) the following day. The return flight will depart Shannon at 11 a.m. (1100), arriving in Chicago at 1:05 p.m. (1305) the same day. United will operate the flight using Boeing 757-200 aircraft with a total of 169 seats – 16 in United BusinessFirst, 45 in United Economy Plus and 108 in United Economy. Eastbound service to Shannon will not operate on Tuesdays and Wednesdays. Westbound service to Chicago will not operate on Wednesdays and Thursdays.
The additional Houston-London flight will depart Houston daily at 8:30 p.m., arriving at London Heathrow at 12:05 p.m. the following day. The return flight will depart London Heathrow daily at 1:05 p.m., arriving in Houston at 5:45 p.m. the same day. United will operate the service between Houston and London using Boeing 767-300 aircraft, with flat-bed seats, premium menu options and Economy Plus seats with additional legroom.
United will also launch three-times-daily service from the Washington Dulles hub to Fayetteville, North Carolina on February 14, 2013, and once-daily nonstop service from the Chicago O’Hare hub to Mobile, Alabama on April 9, 2013. United Express carrier ExpressJet Airlines (Atlanta) will operate the Chicago-Mobile services. United Express carrier CommutAir (Burlington) will operate the Washington-Fayetteville services.
Copyright Photo: Michael B. Ing. Boeing 757-224 N29129 (msn 28969) approaches Los Angeles for landing.
Air Astana (Almaty) remains profitable for the first half of 2012, reporting a smaller net profit of $4.95 million.
The company issued the following report:
“Kazakhstan’s Air Astana saw its revenues grow by 13% to $394 million, matched by a similar increase in passenger numbers, although net profit declined to $4.95 million. Capacity grew by 11% with the addition of an additional Boeing 757-200 and three additional Embraer 190s. Its fleet size now stands at 26 after the retirement of three of its six Fokker 50s, with the remainder due for retirement by January 2013 to be replaced by two additional ERJ 190s.
New routes were launched from Astana to Omsk in Southeast Russia, from Astana to Tashkent and Baku, from Astana to Chymkent and Aktau in southern and western Kazakhstan, and from Almaty to Kazan in southern Russia. Planned new routes for the second half include Almaty to Hong Kong, Almaty to Ho Chi Minh City and Atyrau to Moscow. Flights from Astana to Beijing will be added to its existing Almaty to Beijing services. The airline will take delivery of 4 new Airbus A320s and 2 new A321s from November 2012 to May 2013, and recently placed an order for four new Boeing 767-300s and three Boeing 787-8s, to be delivered from November 2013 through 2017.”
Copyright Photo: Rob Skinkis. The new Astana-Beijing route starting on August 25 will be operated with Boeing 757-200s. The pictured 757-2G5 P4-EAS (msn 29488) is seen arriving at London (Heathrow).
Allegiant Air (Las Vegas) today (July 30) announced its intention to lease nine Airbus A319 aircraft from GE Capital Aviation Services (GECAS) and to lease and eventually purchase ten Airbus A319 aircraft from Cebu Pacific Air (Manila). The introduction of the A319 aircraft will support Allegiant’s growth opportunities.
Allegiant plans to have the first two of these aircraft in operation in the second quarter of 2013.
Allegiant currently operates 58 MD-80 aircraft, four Boeing 757-200 aircraft and owns an additional two Boeing 757-200 aircraft.
Top Image: Allegiant Air/Globe Newswire.
Bottom Copyright Photo: Gerd Beilfuss. The Cebu Pacific Air A319s are relatively new. The pictured A319-111 D-AVYG (msn 2556) became RP-C3189 on delivery on September 23, 2005. Cebu currently operates 10 A319s and will concentrate its fleet around the larger A320.
FedEx Express (FedEx Corporation) (Memphis) has announced its decision to permanently retire from service 18 Airbus A310-200 aircraft and 26 related engines, as well as six McDonnell Douglas (Boeing) MD-10-10 aircraft and 17 related engines. The majority of these aircraft are currently parked and not in revenue service. As a consequence, a non-cash impairment charge of $134 million ($84 million, net of tax, or $0.26 per diluted share) was recorded in the fourth quarter. The decision to permanently retire these aircraft will better align the U.S. domestic air network capacity of FedEx Express to match current and anticipated shipment volumes.
These permanent retirements are in addition to five Boeing 727-200 aircraft retired in the fourth quarter of fiscal 2012 and the planned fiscal 2013 retirement of 21 Boeing 727 aircraft, which will be fully depreciated.
FedEx Express continues to modernize its aircraft fleet by adding newer aircraft that are more reliable, fuel efficient and technologically advanced, and retiring older, less-efficient aircraft. In response to the company’s new fleet plans, FedEx Express is shortening the depreciable lives of the following aircraft and related engines: 31 additional Boeing MD-10-10s, 18 additional Airbus A310s, four Boeing 727s and one Boeing MD-10-30. This will accelerate the retirement of these aircraft to align with the delivery schedule for replacement Boeing 767-300 and Boeing 757-200 aircraft. The accelerated depreciation on these aircraft is expected to total $196 million over the next three fiscal years with a partial offset from the avoidance of depreciation related to the retirements (see table):
Total Impact on Fleet Depreciation – Decrease/(Increase)
|Depreciation Avoided Due to Retirements||
|Net Impact on Depreciation||
FedEx Express Aircraft Fleet Facts:
- As of February 29, 2012, FedEx Express’s fleet totaled 688 aircraft, including 397 jet aircraft.
- In fiscal 2011, FedEx Express spent $3.2 billion on 1.2 billion gallons of jet fuel.
- The Boeing 757 is significantly more fuel efficient per pound of payload and has 20% additional payload capacity than the Boeing 727 it replaces.
- The Boeing 767 will provide similar capacity as the MD-10s, with improved reliability, an approximate 30% increase in fuel efficiency and a minimum of a 20% reduction in unit operating costs.
- The Boeing 767 shares spare parts, tooling and flight simulators with the Boeing 757.
Top Copyright Photo: Bruce Drum.
Bottom Copyright Photo: TMK Photography.
United Airlines Boeing 757-222 N525UA (msn 24978) MIA (Bruce Drum), originally uploaded by Airliners Gallery.
The Federal Aviation Administration (FAA) (Washington) is expected to issue a directive to U.S. airlines operating the Boeing 757 workhorse to inspect for cracks following two recent incidents according to this Bloomberg article.
Read the full story:
Copyright Photo: Bruce Drum. Please click on the photo for additional aircraft details.
Allegiant (Las Vegas) announced it will consolidate all of its Orlando air service to Orlando Sanford International Airport (SFB) beginning on February 1, 2011. The company, which currently operates 29 routes to and from the Orlando area, will move the 10 routes it serves from Orlando International Airport (MCO) to Sanford.
Allegiant began service to the Orlando area via the Orlando Sanford International Airport on May 26, 2005, with nonstop flights to four markets. Today, the company serves 29 markets to the Orlando area including: Appleton, WI, Bangor, ME, Cedar Rapids, IA, Chattanooga, TN, Duluth, MN, Elmira, NY, Fargo, ND, Fort Wayne, IN, Greensboro, NC, McAllen, TX, Northwest Arkansas, Owensboro, KY, Plattsburgh, NY, Roanoke, VA, Rockford, IL, Sioux Falls, SD, South Bend, IN, Toledo, OH, and Wilmington, NC.
By consolidating the operations to a single airport in the Orlando area, Allegiant is able to keep costs down and offer its customers the best travel deals. Allegiant currently bases five DC-9-80 (MD-80) series jet aircraft at Orlando International Airport and as of February 1, 2011, the aircraft will move to Orlando Sanford International Airport to support the additional flights. Allegiant began service from Orlando International Airport on February 1, 2010.
DHL Aero Expreso (Panama City) is replacing its older Boeing 727-200 freighter fleet with recently-converted Boeing 757-200 freighters.
The first to be delivered was 757-27A HP-1810DAE (msn 29611) on August 4, 2010.
The second, ex-FAT 757-27A HP-1910DAE (msn 29607) arrived on September 22, 2010. The conversion work was performed for Precision Conversions, LLC. This second 15 pallet Boeing 757-200PCF freighter was delivered to Aerolease Aviation, LLC. The Pratt & Whitney powered 757 represents the second of three 757-200PCFs to be converted for Aerolease under a multi-aircraft deal announced in April 2010. The freighter includes a weight upgrade option that can bring the total payload up to 80,000 pounds. HP-1910DAE was leased by Aerolease to DHL Aero Expreso.
The conversion was completed at Flightstar Aircraft Services in Jacksonville, Florida. Precision Conversions has re-delivered a total of 26, full fifteen pallet position 757-200PCF conversions to operators in Europe, North and South America, Africa, China, and India.
Copyright Photo: Raul Sepulveda. DHL Aero Expreso’s Boeing 757-27A HP-1910DAE (msn 29607) is pictured in operation at Miami.
British Airways Boeing 757-236 G-CPET (msn 29115) LHR (Terry Wade), originally uploaded by Airliners Gallery.
British Airways (London) is planning its last day of Boeing 757 revenue operations on October 30 with Boeing 757-236 G-CPET (msn 29115) painted in the 1973 delivery livery. The Ian Allan charter flight for November 6 has been cancelled. Here is the tentative schedule for October 30:
BA1384 LHR-MAN 0745 – 0840
BA1389 MAN-LHR 1000 – 1105
BA1482 LHR-GLA 1215 – 1340
BA1487 GLA-LHR 1425 – 1545
BA1454 LHR-EDI 1725 – 1850
BA1463 EDI-LHR 1935 – 2100
Therefore the planned last flight will be flight BA 1463 from Edinburgh to London Heathrow, arriving at 9 p.m. (2100).
Copyright Photo: Terry Wade. Please click on the photo for additional details.
US Airways Boeing 757-2B7 WL N936UW (msn 27244) (Star Alliance) SEA (Nick Dean), originally uploaded by Airliners Gallery.
US Airways Group, Inc. (Phoenix) today reported its third quarter financial results. On a GAAP basis, the Company reported a net profit of $240 million for its third quarter 2010, or $1.22 per diluted share, compared to a net loss of ($80) million, or ($0.60) per share, for the same period in 2009. The $240 million net profit is the highest third quarter net profit in the Company’s history.
Excluding special items of $3 million, net profit for the third quarter 2010 was $243 million, or $1.23 per diluted share. Net loss excluding special items for the third quarter 2009 was ($110) million, or ($0.83) per share.
Copyright Photo: Nick Dean. Please click on photo for additional details.
Delta Air Lines (Atlanta) today reported financial results for the September 2010 quarter. Key points include:
Delta’s net income for the September 2010 quarter was $929 million, or $1.10 per diluted share, excluding special items. This is an $878 million improvement year over year.
Delta’s GAAP net income was $363 million, or $0.43 per diluted share, for the September 2010 quarter.
Results include $185 million in profit sharing expense, in recognition of Delta employees’ achievements toward meeting the company’s financial targets, bringing total profit sharing expense for the year to date to $275 million.
Delta executed $750 million in debt reduction and delevering initiatives during the quarter and ended the September 2010 quarter with $5.5 billion in unrestricted liquidity.
Delta recorded special items totaling a $566 million charge in the September 2010 quarter, including:
$360 million in primarily non-cash loss on extinguishment of debt;
$153 million in costs related to the Comair fleet reduction; and
$53 million in merger-related expenses.
Copyright Photo: Tony Storck. Please click on the photo for additional details.
National Airlines (5th) (National Air Cargo) (Ypsilanti) is planning to operate a total of five converted Boeing 757-200 combi aircraft. The first four are in the conversion process. The first aircraft is ex-AeroGal Boeing 757-236 HC-CHC (msn 25592) now registered as N169CA.
Pemco World Air Services has disclosed details of a project to convert four 757-200 passenger aircraft to Combi configuration. The base modification combines Pemco’s 757 freighter conversion with the successful 737-400 Combi modification which Pemco designed, built and certified in 2006 for Alaska Airlines.
The 757C launch project will involve a total of five National Airlines airplanes and includes installation of a large cargo door and freight handling system, provisions for Class C cargo compartment with automatic fire detection and suppression, installation of an in-flight entertainment system in the passenger compartment, modification of the flight deck to state of the art glass instrumentation, and a full heavy maintenance visit including paint.
Pemco inducted the first of the Combi units in June of this year, and says that the conversion work has gone more quickly than anticipated. Pemco expects to begin ground and flight testing by year end, and to achieve FAA certification of the 757 Combi in the first quarter 2011. NAC’s second 757-200 was inducted into conversion in August, the third followed in mid-September and the fourth in October. The first four aircraft are Rolls-powered and 180 minutes ETOPS capable.
The initial Combi configuration developed for National Airlines has 10 pallet positions in a Class C cargo compartment, a well-appointed passenger compartment, two full galleys, and accommodations for multiple supernumerary personnel. Pemco says the payload will be about 36 tons and the range will be comparable to passenger aircraft.
Pemco purchased the Alcoa-SIE 14.5-pallet 757-200 passenger-to- full freighter conversion program last year. Pemco has since leveraged its own successful 737-400 Combi program, and together with SIE, developed the 757 Combi conversion program.
Copyright Photo and Image (above and below): Pemco/Business Wire.
United Airlines (Chicago) is moving into headquarters. The first 280 United Airlines employees are moving into new offices as the company begins relocating its operations center in Elk Grove Village to its new location in Willis Tower. This is the first phase of the move of more than 2,500 people who currently work at the company’s Elk Grove facility.
United currently plans to occupy 12 floors at Willis Tower, three more floors than the company originally announced in August of 2009.
United has been Chicago’s “hometown airline” for more than 80 years and after the move to Willis Tower is complete, United expects to employ more than 13,000 people in the city.
United anticipates moving more than 1,000 employees into Willis Tower by year end, and expects that the remaining moves will occur over the next 18 months.
Copyright Photo: Jeffrey S. DeVore. The first Boeing 757 in the new (old) colors is this 757-224 N29124 (msn 27565) pictured at the Houston hub.
Icelandair Boeing 757-208 WL TF-FIN (msn 28989) LHR (Keith Burton), originally uploaded by Airliners Gallery.
Icelandair (Keflavik) will begin seasonal service from Washington Dulles International Airport with four flights a week starting on May 17, 2011 through September 13, 2011.
In addition to Washington, D.C. Icelandair, offers non-stop service to Iceland from Boston, New York-JFK, Seattle/Tacoma, and seasonal service from Minneapolis/St. Paul, Orlando (Sanford), Halifax and Toronto (Pearson).
Copyright Photo: Keith Burton. Boeing 757-208 TF-FIN (msn 28989) climbs away from Heathrow Airport.
British Airways (London) as we reported earlier rolled out on schedule at London Heathrow its Boeing 757-236 G-CPET (msn 29115) in the 1973 color scheme to celebrate the retirement of the type on October 30 after over 27 years of faithful service.
Copyright Photo: David Apps.
Air Finland Boeing 757-2F2 WL OH-AFI (msn 26330) SZG (Arnd Wolf), originally uploaded by Airliners Gallery.
Air Finland is planning to introduce a new livery and brand.
Read the full report (with a drawing) in Finnish:
Copyright Photo: Arnd Wolf. Boeing 757-2F2 OH-AFI (msn 26330) climbs beautifully at scenic Salzburg in the current 2003 color scheme.
British Airways (London) is planning to retire its last Boeing 757-200 from revenue service on October 30, visiting Shuttle cities on the last day. An Ian Allan special enthusiast charter flight from London to Manchester is also being planned for November 6. BA will paint the last 757 in this delivery livery to celebrate over 17 years of faithful service. The last three 757s currently in service are G-CPER, G-CPES and G-CPET (besides those operated by OpenSkies).
Update: Boeing 757-236 G-CPET (msn 29115) entered the paint shop on September 26 and is expected to be rolled out at London (Heathrow) on October 3 in the retrojet color scheme.
Copyright Photo: Vernon Murphy. The first Boeing 757 on the first day of revenue service at Glasgow. The pictured 757-236 G-BIKB (msn 22173) was the first to arrive on January 15, 1983 and entered revenue service on February 8, 1983. G-BIKB also displays the original 1973 livery.
UAL Corporation, the parent company whose primary subsidiary is United Airlines (Chicago), announced yesterday (September 17) that its stockholders approved the merger of a wholly owned subsidiary of UAL with and into Continental Airlines (Houston), clearing the way for the merger to close by an expected date of October 1. More than 98 percent of the votes cast and 84 percent of the shares outstanding were voted by UAL stockholders in favor of the transaction. More than 98 percent of the votes cast and 75 percent of the shares outstanding were voted by Continental stockholders in favor of the transaction.
Copyright Photo: Bruce Drum. Although the United name will survive, many observers are lamenting the loss of this sharp-looking scheme for United Airlines which was introduced in 2004 and will now be retired. This merger will also end the long reign of the “U” logo which was first introduced in 1974 in another form.