Delta Air Lines Boeing 767-332 N182DN returns to Madrid with a missing wing panel, runs off the side of the runway
Delta Air Lines (Atlanta) flight DL 415 departed Madrid (Barajas) bound for New York (JFK) yesterday (December 4) with the pictured Boeing 767-332 ER N182DN (msn 25987). The flight was involved in an incident. According to Aviation Safety Network, the crew elected to return to MAD after reporting it blew a tire on takeoff. Pictures taken from the plane show a missing wing panel on the top of the right wing.
On landing the aircraft veered to the left and ended up off the side of runway 18R-36L in the grass.
Read the full report with photos from Foroaviones.com: CLICK HERE
Copyright Photo: Richard Vandervord/AirlinersGallery.com. Boeing 767-332 ER N182DN (msn 25987) taxies at Milan (Malpensa).
Alitalia (2nd) (Rome) has flatly turned away Ryanair’s (Dublin) (please see the previous post) offer to feed Alitalia’s long range flights at its Rome Fiumicino hub. Ryanair has announced it will move many of its flights to its new Fiumicino base.
Alitalia issued this terse and short statement:
“Alitalia has its own strategy, an industrial plan, a fleet and its own crews that allow it to have the necessary passenger traffic to feed its international and intercontinental connections leaving from the hub at Fiumicino airport”.
Read the full report from Reuters: CLICK HERE
Copyright Photo: Ken Petersen/AirlinersGallery.com. Alitalia’s Boeing 767-343 ER EI-CRM (msn 30009) arrives from Rome (Fiumicino) at New York (JFK).
United Airlines (Chicago) officially opened its new wide body aircraft maintenance hangar yesterday at Washington Dulles International Airport, a major United hub and the airline’s principal gateway to the Middle East.
“The close relationship between Dulles and United goes back decades, and this facility represents yet another important investment in this key market,” said Greg Hart, United’s senior vice president for technical operations. “Our new maintenance hangar, coupled with additional improvements in our terminals, gate areas, lounges and employee facilities, will deliver greater reliability for our customers and enhance their overall travel experience.”
More than 600 area construction workers helped build the 125,000-square-foot hangar, which includes 85,000 square feet of enclosed aircraft space.
United has maintenance hangars at its hubs in Chicago O’Hare, Cleveland, Denver, Houston Bush Intercontinental, Los Angeles and San Francisco, and is nearing completion on another wide body hangar at Newark Liberty International Airport.
Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 767-322 ER N664UA (msn 29236) now with Blended Winglets completes its final approach into Washington Dulles International Airport (IAD).
Washington Dulles International Airport Hub Fact Sheet:
American and US Airways settle with the Department of Justice giving up 52 DCA slot pairs and 17 LGA slot pairs, paving the way towards a merger
AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc., (Dallas/Fort Worth) and US Airways Group, Inc. (US Airways) (Phoenix) today announced that the airlines have settled the litigation brought by the U.S. Department of Justice (DOJ), the States of Arizona, Florida, Michigan and Tennessee, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia challenging the merger of AMR and US Airways. The companies also announced an agreement with the U.S. Department of Transportation (DOT) related to small community service from Washington Reagan National Airport (DCA).
Tom Horton, chairman, president and CEO of AMR, and incoming chairman of the board of the combined company, said, “This is an important day for our customers, our people and our financial stakeholders. This agreement allows us to take the final steps in creating the new American Airlines. With a renewed spirit, we are about to create the world’s leading airline that will offer, along with our oneworld® partners, a comprehensive global network and service by the best people in the business. There is much more work ahead of us but we’re energized by the challenge and look forward to competing vigorously in the ever-changing global marketplace.”
Doug Parker, chairman and CEO of US Airways, and incoming CEO of the combined airline, said, “This is very good news and we are grateful to all who have made it happen. In particular, we are thankful to our employees, who throughout this process continued to believe in a better future as one airline and who voiced their support passionately and consistently. We also want to thank the elected officials in the states and communities we serve, the business leaders in our hub cities, and the thousands of customers who endorsed and supported this effort. Thank you as well to the U.S. Department of Justice, the state attorneys general and the U.S. Department of Transportation. We are pleased to have this lawsuit behind us and look forward to building the new American Airlines together.”
Under the terms of the settlement, the airlines will divest 52 slot pairs at Washington Reagan National Airport (DCA) and 17 slot pairs at New York LaGuardia Airport (LGA), as well as certain gates and related facilities to support service at those airports. The airlines also will divest two gates and related support facilities at each of Boston Logan International Airport, Chicago O’Hare International Airport, Dallas Love Field, Los Angeles International Airport, and Miami International Airport. The divestitures will occur through a DOJ approved process following the completion of the merger. Despite the divestitures, the new American is still expected to generate more than $1 billion in annual net synergies beginning in 2015, as was estimated when the merger was announced in February.
After completion of the required divestitures, the combined company expects to operate 44 fewer daily departures at DCA and 12 fewer daily departures at LGA than the approximately 290 daily DCA departures and 175 daily LGA departures that American and US Airways operate today. The divestitures required by the settlement are not expected to impact total employment at the new American.
To ensure much of the service currently operated by the carriers to small- and medium-sized markets from DCA is maintained, the new American has agreed with the DOT to use all of its DCA commuter slot pairs for service to these communities. The new American intends to announce the service changes that will result from the divestitures in advance of the sale of the DCA and LGA slots, so that the airlines acquiring those slots have the opportunity to maintain service to those impacted communities.
In the settlement agreement with the state Attorneys General, the new American has agreed to maintain its hubs in Charlotte, New York (Kennedy), Los Angeles, Miami, Chicago (O’Hare), Philadelphia, and Phoenix consistent with historical operations for a period of three years. In addition, with limited exceptions, for a period of five years, the new American will continue to provide daily scheduled service from one or more of its hubs to each plaintiff state airport that has scheduled daily service from either American or US Airways. A previous settlement agreement with the state of Texas will be amended to make it consistent with today’s settlement.
Completion of the merger remains subject to the approval of the settlements by the U.S. Bankruptcy Court, and certain other conditions. The companies now expect to complete the merger in December 2013.
Copyright Photo: Andi Hiltl/AirlinersGallery.com. American Airlines’ Boeing 767-323 ER N376AN (msn 25445) touches down in Zurich.
Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York-JFK) announced adjusted net income attributable to common stockholders of $28.6 million, or $1.13 per diluted share, for the three months ended September 30, 2013, compared with $33.4 million, or $1.26 per diluted share, for the three months ended September 30, 2012.
On a reported basis, third-quarter 2013 net income attributable to common stockholders totaled $23.7 million, or $0.94 per diluted share, compared with $33.9 million, or $1.27 per diluted share, in the third quarter of 2012. Free cash flow of $73.8 million in the third quarter of 2013 compared with $98.9 million in the third quarter of 2012.
“Earnings in the third quarter of 2013 were below our expectations, reflecting market factors,” said William J. Flynn, President and Chief Executive Officer. “Demand in the commercial airfreight peak season through September was less than we anticipated. Airfreight yields remained under pressure, impacting our Commercial Charter segment. In addition, a decline in military charter demand led to a reduction in AMC volumes and fewer favorable one-way AMC missions.
“Results during the quarter were supported by strength in our core ACMI operations and growth in our Dry Leasing business. Led by our new 747-8 freighters in ACMI, we saw increasing contributions during the quarter from investments to diversify our business mix, including the addition of 777 freighters with predictable, long-term revenue and earnings streams in Dry Leasing; our expanding 767 service; growing CMI operations within ACMI; and ongoing continuous improvement initiatives.
“Reflecting our commitment to enhance stockholder value, we acquired a further 3.1% of our outstanding common stock through our share repurchase program from May through August. Combined with the shares that we bought through the end of April, we have repurchased approximately 6.5% of our shares for $72 million this year. In addition, our board of directors has increased our existing authority to repurchase shares from $9 million to $60 million.”
Revenue, volume and profitability growth in our core ACMI business during the third quarter were driven by our new 747-8Fs, with an average of 3.3 additional -8F aircraft in service compared with the third quarter of 2012, and the continued ramp up and expansion of CMI service.
Improved ACMI segment earnings 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.
In Dry Leasing, revenue and profitability grew following the acquisition of one 777-200 LRF aircraft in March 2013 and two 777-200 LRF aircraft in July 2013. Each aircraft was acquired with a long-term customer lease already in effect.
In AMC Charter, a reduction in cargo and passenger block hours, as well as a reduced number of one-way AMC missions and a change in the proportion of those missions from outbound U.S. to inbound U.S., led to a significant decline in segment contribution. Higher average cargo and passenger revenue per block hour during the period stemmed from an increase in the average pegged fuel price set by the U.S. military.
Segment results in Commercial Charter primarily related to a reduction in yields driven by soft third-quarter global charter-market conditions. Results also reflected a reduction in return legs due to the change in the number and direction of one-way AMC missions.
Results in the third quarter were also affected by a reduction in capitalized interest on 747-8F aircraft that entered service.
Reported earnings for the third quarter of 2013 included an effective income tax rate of 31.3%, reflecting both the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business and the net impact of the resolution of certain income tax liabilities.
For the nine months ended September 30, 2013, adjusted net income attributable to common stockholders totaled $54.9 million, or $2.13 per diluted share, compared with $78.3 million, or $2.95 per diluted share, for the nine months ended September 30, 2012.
On a reported basis, nine-month 2013 net income attributable to common stockholders totaled $63.9 million, or $2.48 per diluted share, compared with $77.5 million, or $2.92 per diluted share, in the first nine months of 2012.
Free cash flow in the first nine months of 2013 increased to $180.8 million from $154.1 million in the first nine months of 2012.
Cash and Short-Term Investments
At September 30, 2013, our cash, cash equivalents, short-term investments and restricted cash totaled $298.4 million, compared with $419.9 million at December 31, 2012.
The change in position at September 30 reflected cash provided by operating and financing activities offset by cash used for investing activities.
Net cash used for investing activities in the first nine months of 2013 primarily related to the purchase of two 747-8F aircraft as well as three 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. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.
Between mid-May and mid-August, we repurchased 820,276 shares of our common stock for $35.6 million. The shares were acquired pursuant to an accelerated share repurchase program with a financial institution that settled in August.
Through the nine months ended September 30, 2013, we repurchased a total of 1,723,577 shares, or 6.5%, of our outstanding common stock at December 31, 2012.
Future repurchases under our new $60 million authority may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.
Looking to full-year 2013, we expect fully diluted earnings per share to total between $3.40 and $3.80 on an adjusted basis and $3.75 and $4.15 on a reported basis.
Our current outlook reflects a much less robust commercial airfreight peak season than previously anticipated. While commercial airfreight volumes are strengthening, airfreight yields remain volatile. In addition, military cargo volumes have declined at a more rapid rate. Together, these factors affected our third-quarter results and have reduced anticipated profitability for the fourth quarter.
Partially offsetting these challenges are increasing contributions from investments to diversify the company’s business mix, led by new 747-8 freighters in the company’s core ACMI business; the addition of 777 freighters with predictable, long-term revenue and earnings streams in Dry Leasing; an expanding 767 service platform; entry into military and commercial charter passenger operations; and continuing growth in the company’s non-asset-intensive CMI operations. Also contributing are ongoing continuous improvement productivity and efficiency initiatives.
Mr. Flynn added: “Airfreight remains a long-term growth industry despite current market challenges. We are focused on the long-term growth of our business, and we are well-positioned to capitalize on market improvements. Our business model is solid and is complemented by substantial operating leverage, strong customer relationships and a superior fleet. We continue to strengthen our competitive position and generate substantial free cash flow, which will enhance stockholder value.”
Copyright Photo: Bernhard Ross/AirlinersGallery.com. Atlas Air’s Boeing 767-38E ER N641GT (msn 25132) is pictured in action at Frankfurt.
United Airlines‘ (Chicago) fleet service, passenger service and stockroom employees, represented by the International Association of Machinists and Aerospace Workers (IAM), have ratified a new contract with the company.
The IAM issued this statement:
After more than four years of negotiations, a merger of three airlines and numerous representation elections, the International Association of Machinists and Aerospace Workers (IAM) today announced members at United Airlines ratified agreements covering approximately 30,000 fleet service, passenger service and stockroom employees.
“I thank all IAM members for their patience and solidarity through this entire process,” said IAM District 141 President Rich Delaney. “These contracts provide IAM members at United Airlines the best overall terms in the airline industry. It’s now time to move on, unify as one and make our union stronger.”
With over 65 percent participation, each contract was approved by more than 70 percent of voting members.
The agreements run through 2016 and provide immediate wage increases ranging from 7-29 percent, and from 19-56 percent over the term of the agreements. The accords also preserve and improve both defined benefit and defined contribution retirement plans, provide 96 percent of the workforce protection from outsourcing, maintain affordable health insurance options and increases vacation time, among other enhancements.
“IAM members demonstrated perseverance and patience during these difficult negotiations,” said Airline Coordinator Ira Levy. “There haven’t been negotiations in recent memory as complex as these, and our negotiators should be proud of what they accomplished.”
Approximately 1,500 IAM fleet technical instructors, maintenance instructors and food service and security officers remain in negotiations.
Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 767-424 ER N69059 (man 29454) climbs away from the Washington Dulles hub.
Air Canada rouge (Toronto-Pearson) on October 27 launches service between Toronto (Pearson) and Las Vegas and will launch service between Montreal and Las Vegas on March 13, 2014.
Starting this Sunday, Air Canada rouge will offer ten flights a week from Toronto to Las Vegas for the winter 2013-2014 season featuring 264-seat wide-body Boeing 767-300 ER aircraft, representing a capacity increase of 13% on the route over last winter when it was operated by Air Canada. Air Canada rouge will assume the Montreal-Las Vegas route from Air Canada effective March 13, 2014 with ten flights a week. Air Canada will continue to operate service between Vancouver and Calgary to/from Las Vegas for the winter season.
Toronto-Las Vegas winter flight schedule (effective October 27, 2013):
Air Canada rouge’s service between Toronto and Las Vegas features convenient flight times that maximize travellers’ time in Las Vegas. The daily flight departs Toronto at 9:05 a.m., arriving in Las Vegas at 10:59 a.m. and departs Las Vegas at 12:15 p.m. arriving in Toronto at 7:22 p.m. The second flight, which operates on Thursdays, Fridays and Sundays departs Toronto at 8:45 p.m., arriving in Las Vegas at 10:39 p.m. and departs Las Vegas at 11:55 p.m., arriving the next day in Toronto at 7:00 a.m.
Montreal Las Vegas winter flight schedule (effective March 13, 2014):
Air Canada rouge’s winter service between Montreal and Las Vegas also features convenient, customer-friendly flight times. The daily flight will depart Montreal at 7:40 a.m. arriving in Las Vegas at 10:28 a.m. and will depart Las Vegas at 11:15 a.m. arriving in Montreal at 7:08 p.m. The second flight, which will operate on Thursdays, Fridays and Sundays departs Montreal at 7:50 p.m., arriving Las Vegas at 10:38 p.m. and departs Las Vegas at 10:20 p.m., arriving the next day in Montreal at 7:13 a.m.
Air Canada rouge will operate the Toronto-Las Vegas route with a 264-seat wide-body Boeing 767 aircraft featuring three classes of seating: Premium rouge, rouge Plus and rouge. Premium rouge has 18 seats in a 2 + 2 + 2 configuration with a 41- 42″ pitch, a 7″ inch recline. rouge Plus has 4 rows in a 2 + 3 + 2 configuration behind Premium rouge, with a 35″ pitch, up to 5″, and rouge seating has 246 seats in a 2 + 3 + 2 configuration with a 30-32″ pitch and a 6″ recline. Premium rouge customers on Air Canada rouge North American flights now earn enhanced Aeroplan Miles, have access to priority security lines and complimentary Maple Leaf Lounge access.
Air Canada rouge crew offer the airline’s unique warm welcome onboard. Trained in customer service excellence, the rouge crew take every measure to ensure that flights are relaxed, enjoyable and are part of a memorable start and end to a Las Vegas vacation.
A tasty selection of meals, drinks and snacks, as well as comfort items such as pillows, blankets and headphones, are available onboard through Air Canada rouge’s Buy On Board service.
Air Canada rouge aircraft are all equipped with player, a next generation in-flight entertainment system that streams unlimited live entertainment — including movies, TV shows, kids programming, music and an About Us section — to customers’ personal electronic devices. Air Canada rouge is one of the first airlines in North America to offer streaming onboard content. player is offered at a nominal fee of $5 for rouge and rouge Plus customers for unlimited movie and TV show access; music and destination content are always complimentary. Customers simply need to bring their own fully-charged laptop or iPad, iPod or iPhone, or they can rent an iPad on board for $10.
Copyright Photo: Paul Doyle/AirlinersGallery.com. Air Canada rouge Boeing 767-33A ER C-GHPE (msn 33423) lands at Dublin.
Hawaiian Airlines (Honolulu) has announced it will file an application to provide nonstop service between Tokyo International Airport at Haneda and Kona International Airport on Hawai’i Island, utilizing operating slots at the Haneda airport being returned by American Airlines later this year.
Hawai’i's flagship carrier will file its application with the U.S. Department of Transportation on Thursday, proposing daily service using its 294-seat A330 aircraft. Hawaiian Airlines’ 2012 application for non-stop Haneda-Kona service included 175 letters of support from members of the Kona community.
Hawaiian Airlines has been connecting Hawai’i and Japan since November 2010, when it launched daily service between Haneda and Honolulu. The airline quickly followed with service between Honolulu and Osaka, Fukuoka, Sapporo and Sendai, and now provides 6,700 seats per week between Japan and the Hawaiian Islands.
Kona has been without a non-stop flight from Japan since October 29, 2010, when Japan Airlines discontinued direct service to West Hawai’i from Narita International Airport.
On the financial side, the company reported a third quarter net profit of $36.8 million. Hawaiian Holdings issued this statement:
Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the third quarter of 2013.
Third Quarter 2013 Financial Results
- Adjusted net income, reflecting economic fuel expense, of $36.8 million or $0.69 per diluted share.
- GAAP net income of $40.6 million or $0.76 cents per diluted share.
- Available seat miles (ASMs) increase of 9.0% year-over-year.
- Passenger revenue per available seat mile (PRASM) increase of 0.2% and operating revenue per available seat per mile (RASM) increase of 0.1%.
- Cost per available seat mile (CASM), excluding fuel, increase of 2.1% year-over-year.
- CASM increase of 1.5% year-over-year.
Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “our third quarter results are a good step towards improving financial performance. The tide of industry capacity between the US West Coast and Hawai’i is beginning to recede and our new international routes are maturing, both of which are helpful developments. The strengthening of the US dollar against our major foreign currencies is pushing the other way. Indeed, were it not for foreign exchange effects, our third quarter results would have been the best in the company’s history.”
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of September 30, 2013 the Company had:
- Unrestricted cash and cash equivalents of $441 million.
- Available borrowing capacity of $70 million under Hawaiian’s Revolving Credit Facility.
- Outstanding debt and capital lease obligations of approximately $763 million consisting of the following:
- $361 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.
- $159 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
- $112 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
- $55 million of outstanding floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
- $76 million of outstanding Convertible Senior Notes.
- Ranked #1 nationally for on-time performance for the months of June and July 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
- Exceeded our internal on-time performance goals for the third quarter.
Fleet and financing
- Returned one Boeing 767-300 aircraft at the end of its lease term.
- Took delivery of one ATR 42-500 twin-turboprop aircraft to inaugurate new service to Moloka’i and Lana’i.
- Enhanced our inflight experience on our Boeing 767-300 aircraft by becoming the only U.S. carrier to offer the Apple iPad mini as a replacement for the prior portable entertainment system.
New routes and increased frequencies
- Honolulu to Taipei, Taiwan three-times-weekly service launched July 9, 2013.
- Announced the reintroduction of daily non-stop service from Honolulu to Oakland beginning in January 2014, an increase from four times weekly. Also, announced seasonal service, during the summer of 2014, between Oakland and Kona, three times weekly and Oakland and Lihu’e, four times weekly.
- Announced seasonal service, during the summer of 2014 between Los Angeles and Kona, three times weekly and Los Angeles and Lihu’e, four times weekly.
Copyright Photo: Eddie Maloney/AirlinersGallery.com. Boeing 767-33A ER WL N581HA (msn 28141) touches down at Las Vegas.
Arkefly (named after the largest Dutch tour operator, Arke) (Amsterdam) was reborn on April 21, 2005 after Dutch TUI took over the assets of bankrupt HollandExel (formerly Air Holland) and renamed it Arkefly. The first aircraft was painted in the TUI color scheme on May 31, 2005 at Maastricht.
Arkefly has now shortened its name to just Arke after its owner. As part of this rebranding, the fleet is also getting this new red, white and blue TUI color scheme. All of the aircraft will have this new look by the end of 2014.
Arke now flies to 65 destinations worldwide. You can book a flight to the Caribbean, the United States, Dubai and other destinations around the Mediterranean. Arke flies the Boeing 737-800 and the Boeing 767-300 (above). From July 2014, Arke will fly the Boeing 787 to Aruba, Bonaire and Curacao.
Copyright Photo: James Helbock/AirlinersGallery.com. Boeing 767-304 ER PH-OYI (msn 29138) prepares to land at Los Angeles International Airport.
Delta Air Lines (Atlanta) today reported financial results for the 2013 third quarter. Highlights from the quarter include:
- Delta’s net profit for the September 2013 quarter was $1.2 billion, or $1.41 per diluted share, excluding special items1. This result is a $444 million improvement year-over-year.
- Including $157 million in special items, Delta’s GAAP net income was $1.4 billion, or $1.59 per diluted share.
- The company began returning capital to shareholders, with $100 million in share repurchases and $51 million in dividend payments.
- September quarter results include $249 million of profit sharing expense in recognition of Delta employees’ contributions to the company’s financial performance.
- Delta generated $1.2 billion of operating cash flow and $627 million of free cash flow in the September 2013 quarter, and ended the period with adjusted net debt of $9.9 billion.
Delta’s operating revenue improved $567 million in the September 2013 quarter compared to the September 2012 quarter. Traffic increased 2.1 percent on a 2.6 percent increase in capacity.
- Passenger revenue increased 6.7 percent, or $581 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 4.0 percent year over year with a 4.5 percent improvement in yield.
- Cargo revenue decreased 6.1 percent, or $15 million, on declining freight yields.
- Other revenue was flat year over year as growth in Delta’s third-party staffing business revenues offset a decline in third-party maintenance revenues.
Comparisons of revenue-related statistics are as follows:
|Increase (Decrease)3Q13 versus 3Q12|
|Passenger Revenue||3Q13 ($M)||ChangeYOY||UnitRevenue||Yield||Capacity|
“The momentum we have built by running an outstanding operation and investing in our product and people enabled a 7 percent revenue growth, with particularly strong performance in Atlanta, New York and London,” said Ed Bastian, Delta’s president. “The revenue environment appears solid through the end of the year, including strong holiday bookings, and we expect to continue to build on the revenue premium we deliver versus the industry.”
Total operating expense in the quarter increased $312 million year-over-year driven by higher volume- and revenue-related expenses; the impact of operational, service and employee investments; and $75 million higher profit sharing expense. These cost increases were partially offset by the savings from Delta’s structural cost initiatives. Non-operating expense declined as a result of lower interest expense and a $40 million benefit for the portion of Virgin Atlantic’s September quarter profit attributable to Delta’s ownership stake.
Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was 1.1 percent higher in the September 2013 quarter on a year-over-year basis, driven by the impact of wage increases and operational and service investments. GAAP consolidated CASM increased 1.0 percent.
Fuel expense, excluding mark-to-market adjustments, declined $81 million as a result of lower market fuel prices and better settled hedge performance. Delta’s average fuel price3 was $2.97 per gallon for the September quarter, which includes $0.06 in hedge gains. On a GAAP-basis, fuel expense for the September quarter increased $74 million year-over-year, driven by lower mark-to-market gains on hedges.
For the September quarter, operations at the Trainer refinery produced a $3 million profit. While lower crack spreads pressured results at the refinery, they also reduced market jet fuel prices and helped lower Delta’s overall fuel expense.
Cash from operations during the September 2013 quarter was $1.2 billion, driven by the company’s September quarter profit. The company generated $627 million of free cash flow.
Capital expenditures during the September 2013 quarter were $635 million, including $450 million in fleet investments and $61 million for the purchase of 12 aircraft off lease. During the quarter, Delta’s debt maturities and capital leases were $430 million.
In the September quarter, the company began returning capital to shareholders. On Sept. 10, the company paid $51 million to shareholders, which represents the $0.06 per share quarterly dividend declared earlier in the year. In addition, the company repurchased 4.8 million shares at an average price of $20.82 for a total of $100 million. The company has $400 million remaining of the $500 million share repurchase plan authorized by Delta’s Board of Directors in May.
Delta ended the quarter with adjusted net debt of $9.9 billion and the company has now achieved over $7 billion in net debt reduction since 2009. This debt reduction strategy produced a $33 million year-over-year reduction in interest expense in the September quarter. As of September 30, 2013, Delta had $5.8 billion in unrestricted liquidity, including $4 billion in cash, cash equivalents and short-term investments, and $1.8 billion in undrawn revolving credit facilities.
“The $1.8 billion in free cash flow we have generated so far this year has allowed us to achieve our initial $10 billion debt target and start down the path toward our new $7 billion target,” said Paul Jacobson, Delta’s chief financial officer. “With consistently solid cash generation, we are moving forward with our plan to return capital to shareholders while continuing to invest in the company and strengthen our balance sheet.”
Delta has a strong commitment to its employees, customers and the communities it serves. Recent Delta highlights include:
- Recognizing the achievements of Delta employees toward meeting the company’s financial and operational goals with $456 million of incentives so far this year, including $387 million in profit sharing expense and $69 million in Shared Rewards payments;
- Significantly improving its operational performance, resulting in an on-time arrival rate of 83 percent and a 99.8 percent completion factor so far this year. This completion factor performance includes 40 days of 100 percent mainline completion factor;
- Receiving final approval from the U.S. Department of Transportation for Delta’s joint venture with Virgin Atlantic Airways with a grant of anti-trust immunity. The joint venture will allow the airlines to deepen their cooperation, offering more flight choice for travelers on both sides of the Atlantic and improving the travel options for business customers in the New York to London market;
- Equipping Delta’s crews with enhanced technology by providing all flight attendants new Windows Phone 8 handheld devices that will streamline on-board purchasing and improve the customer experience and also announcing plans to provide Delta’s 11,000 pilots with the Microsoft Surface 2 tablet, allowing pilots more efficient access to real-time flight information; and
- Continuing to support the communities we serve through Delta’s Force for Global Good, including raising nearly $7 million since 2005 for the Breast Cancer Research Foundation and furthering the foundation’s goal of breast cancer awareness with Delta’s Pink Plane, a 767-400 (above) dedicated to Evelyn Lauder and featuring BCRF’s trademarked pink ribbon logo on the tail of the aircraft.
Delta recorded special items totaling a $157 million gain in the September 2013 quarter, including:
- a $285 million gain for mark-to-market adjustments for fuel hedges settling in future periods; and
- a $128 million charge for facilities, fleet and other items, primarily associated with Delta’s domestic fleet restructuring.
Delta recorded special items totaling a $279 million gain in the September 2012 quarter, including:
- a $440 million gain for mark-to-market adjustments for 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.
(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) CASM – Ex: In addition to fuel expense, profit sharing and special items, Delta believes excluding ancillary business costs is helpful to investors because ancillary business costs are not related to the generation of a seat mile. These businesses include aircraft maintenance and staffing services Delta provides to third parties and Delta’s vacation wholesale operations. The amounts excluded were $224 million and $214 million for the September 2013 and 2012 quarters, respectively. Management believes this methodology provides a more consistent and comparable reflection of Delta’s airline operations.
(3) Average fuel price per gallon: Delta’s September 2013 quarter average fuel price of $2.97 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 2013 quarter. On a GAAP basis, fuel price includes $285 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period. The net refinery profit for the quarter was $3 million. See Note A for a reconciliation of average fuel price per gallon to the comparable GAAP metric.
Copyright Photo: Antony J. Best/AirlinersGallery.com. Delta’s special “Force for Global Good” Boeing 767-432 ER N845MH (msn 29719) “Pink Plane” taxies at London (Heathrow).
FedEx Express (Memphis), an operating company of FedEx Corporation (Memphis), yesterday introduced its new Boeing 767-300 cargo jet scheduled to begin service this fall. The aircraft is the first of several new 767-300 freighters being added to the FedEx fleet, and represents a major step in the company’s strategically important aircraft fleet modernization program. The 767-300 joins 777s and 757s in the company’s growing fleet of more efficient, lower-emission freighters.
The aircraft was center stage at an event attended by FedEx team members and special guests at the company’s World Hub in Memphis.
The initial 767 was delivered to FedEx from Boeing last month and is undergoing the certification process required to begin service. It is among 50 767s FedEx has ordered, which are scheduled to be delivered through the end of the company’s fiscal year 2019.
With a maximum gross payload capacity of 127,100 pounds, the medium wide-body 767 Freighter has a flight range of 2,922 nautical miles (3,362 statute miles).
The 767 brings FedEx an array of double-digit efficiencies. The freighter is approximately 30 percent more fuel efficient and has unit operating costs that are more than 20 percent lower than the MD10 aircraft it will replace. The ability to share parts, tooling and flight simulators with FedEx 757 freighters is another efficiency of the 767.
Across its aircraft fleet, FedEx projects a 30 percent reduction in its unit carbon emissions by the year 2020. In addition, the company has reaffirmed its commitment to sourcing at least 30 percent of its jet fuel from alternative fuels by the year 2030.
With the 767 freighter, FedEx is also introducing a new “efficient container” or Unit Load Device used to hold individual packages on the aircraft. The FedEx Efficient Container is lighter and its construction includes more recycled materials.
Under its aircraft fleet modernization program, FedEx began upgrading its fleet in 2007 with the addition of 757 freighters to replace 727s. The final 727 in the FedEx fleet was retired in June.
In 2009, the company introduced the 777, the world’s largest twin-engine cargo freighter with a non-stop flight range of 5,800 nautical miles (6,675 statute miles) and a cargo capacity of 178,000 pounds in typical FedEx service.
Copyright Photo: Duncan Kirk/AirlinersGallery.com. Boeing 767-3S2F ER N101FE (msn 42706) taxies at Paine Field near Everett. N101FE was delivered to FedEx on September 4, 2013.
Hawaiian Airlines (Honolulu) will offer first-ever nonstop service between Los Angeles and the islands of Kaua’i and Hawai’i, in response to growing demand during next summer’s peak travel period.
New annual summer service will commence between Los Angeles and Lihu’e, Kaua’i four times a week, and Los Angeles and Kona, Hawai’i Island three times a week starting in 2014 from June 26 to September 19. The new service will add more than 22,000 seats to both island travel markets over 12 weeks of service, and complements the new Oakland service that will also start next summer with direct flights to Lihu’e and Kona for 10 weeks.
The new Los Angeles service will be operated by Hawaiian Airlines’ wide-body, twin-aisle Boeing 767-300 ER aircraft. With the addition of the service, both Lihu’e Airport and Kona International Airport will have a Hawaiian Airlines wide-body aircraft arriving every day of the week next summer.
|HA 62||KOA-LAX||12:40 p.m.||9:05 p.m.||Tues, Thurs, Sun||June 26, 2014|
|HA 61||LAX-KOA||8:00 a.m.||10:55 a.m.||Tues, Thurs, Sun||June 29, 2014|
|HA 64||LIH-LAX||12:40 p.m.||9:15 p.m.||Mon, Wed, Fri, Sat||June 27, 2014|
|HA 63||LAX-LIH||8:00 a.m.||11:10 a.m.||Mon, Wed, Fri, Sat||June 27, 2014|
Hawaiian Airlines is the only carrier serving Hawai’i to offer complimentary meals in Economy Class. In addition, travelers flying between Los Angeles and Kaua’i and Hawai’i, the Big Island can relax and enjoy the comfort and roominess of Hawaiian Airlines’ wide-body, twin-aisle Boeing 767-300 aircraft, seating 264 passengers in a two-class cabin, with 18 in First Class and 246 in the Main Cabin. Adding to the enjoyment of the travel experience on Hawaiian Airlines is the carrier’s signature onboard hospitality program, Mea Ho’okipa (translation: I am host). Travelers will enjoy island-style complimentary meals and made-in-Hawai’i snacks to go along with Hawaiian Airlines’ engaging presentation of the islands’ culture, people and Aloha Spirit throughout the flight.
Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 767-3CB ER N588HA (msn 33466) touches down at Las Vegas.
Alitalia (2nd) (Rome) continues to bleed money. According to this report by Reuters, the flag carrier needs almost $680 million to avoid bankruptcy again. Its main fuel supplier has threatened to stop making fuel deliveries this weekend.
The Italian government, which considers the failing airline a “strategic asset”, has now structured a deal where state owned Poste Italiane through Mistral Air (Rome) would provide a partial capital float in the form of a capital increase to keep the passenger airline flying.
Alitalia continues to lose money and has not been profitable since 2002. The causes of continued losses has not been fully addressed due to political meddling.
The government now wants “radical change” at the airline and wants the current stockholders to share in the capital increase.
Stockholders Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam), which control 25 percent of the shares, has mainly been mum of the recent government calls for action and has continued to ask for more financial information.
The Italian government would like Air France-KLM to raise their stakes in Alitalia but this is unlikely to happen since Air France is restructuring itself.
Can Alitalia survive? Will any of the Gulf carriers (Etihad Airways?) come to the rescue? Will any of the other SkyTeam partners help? Stay tuned.
Read the full report: CLICK HERE
Top Copyright Photo: Ken Petersen/AirlinersGallery.com. Up-close runway action of Alitalia’s Boeing 767-35H ER EI-DBP (msn 26389) in the SkyTeam colors at New York (JFK).
Bottom Copyright Photo: Andi Hiltl/AirlinersGallery.com. Mistral Air’s Boeing 737-348 EI-BUE (msn 23810) prepares to land at Zurich.
Delta Air Lines (Atlanta) is equipping its 11,000 pilots with the Microsoft Surface 2 tablet, which will be used initially as an electronic flight bag to replace heavy paper-based flight kits containing navigational charts and aircraft operating and reference manuals. Device rollout to pilots flying the Boeing 757 and Boeing 767 fleets will start later this year and all Delta cockpits are projected to be paperless by the end of 2014.
Electronic flight bag to support real-time access to resources
Delta’s electronic flight bag will leverage Jeppesen’s industry-leading FliteDeck Pro application built specifically for the Windows platform. The interactive software gives flight crews quicker and more efficient access to key, real-time information and resources such as dynamic charts and navigation utilities that help them better manage the safe operation of their aircraft.
With the Windows RT 8.1 operating system, pilots will be able to open two applications side-by-side, offering, for example, the opportunity to assess weather information alongside proposed flight paths. The Live Tile user interface in Windows 8.1 can feed up-to-the-minute information to crew members while the Surface 2′s true high-resolution 1080p touchscreen display adds detail to maps and other resources.
Delta expects to receive approval from the FAA to use the tablets during all phases of flight next year, a process that follows an extensive period of testing on board Boeing 757 and Boeing 767 aircraft. Approvals for all subsequent fleet types are expected by the end of 2014. The Surface tablets fully integrate handheld technology in the flight deck, streamlining organization of necessary materials and ensuring continuity of information accessed by pilots while giving them the latest tools to drive operational and cost improvements. The reduction of paper in the cockpit also reduces clutter and allows pilots to spend more time focusing on flying the aircraft as they will benefit from an intuitive user interface that features functions to find information faster, without having to hunt for appropriate manuals in flight bags or page through paper documents.
“The integration of the electronic flight bag is part of Delta’s broader move to upgrade flight deck equipment, deploy technology enhancements and take advantage of airspace modernization efforts,” said Dickson. “With these improvements, we’re able to reduce the airline’s environmental impact while providing a great deal of flexibility to continue to add mobile technology solutions into our flying operations.”
Maximizing efficiencies for environmental benefit
Rolling out the Surface 2 tablets across the entire fleet and eliminating paper in the cockpit means the carrier will remove traditional 38-pound pilot flight bags maintained on board aircraft for each pilot. That critical weight reduction is expected to reduce fuel usage by an estimated 1.2 million gallons per year which translates to a 26-million-pound reduction in carbon emissions — the equivalent of taking more than 2,300 passenger cars off the road. Additionally, the tablet will cut the airline’s paper usage by 7.5 million sheets annually and save an estimated 900 trees each year.
In the coming years, Delta plans to expand the functionality of the EFB equipment and increase the efficiency of the operation by providing pilots with electronic dispatch and flight release information, access to real-time weather forecasts, up-to-the-minute operational information and dynamic communication with aircraft technicians on the ground.
The move to a paperless cockpit follows Delta’s industry-leading launch of handheld devices for its 19,000 flight attendants that runs on Windows Phone-based software. Delta flight attendants began using the Nokia Lumia 820 in August and are able to access customer and flight information while using Dynamics for Retail technology for easy onboard customer purchases.
Copyright Photo: Bruce Drum/AirlinersGallery.com. The rollout will start with pilots flying the Boeing 757 and Boeing 767 aircraft. Boeing 767-332 ER N1603 (msn 29695) taxies to the active runway at Seattle-Tacoma International Airport.
American Airlines (Dallas/Fort Worth) is planning (subject to change) to operate the last Boeing 767-200 revenue flight on May 7, 2014 between Los Angeles and New York (JFK) according to Airline Route.
The 767-200 is mainly being used on the trans-con routes and will be replaced with new Airbus A321-200s.
American introduced the 767-200 in November 1982 and has been gradually phasing out the venerable type.
In other news, American Airlines and Qatar Airways (Doha) today announce an expansion of their relationship to include a reciprocal frequent flyer program agreement, providing customers more opportunities to earn and redeem miles when traveling across each airline’s global network.
Copyright Photo: James Helbock/AirlinersGallery.com. The Boeing 767-200s are not being repainted in the new livery because of the imminent retirement. Boeing 767-223 ER N320AA (msn 22321) “Flagship Independence” climbs away from the runway at Los Angeles International Airport.
Jetairfly (Jetairfly.com) (Ostend and Brussels) today announced the April 2014 launch of nonstop service between Miami International Airport and Brussels, Belgium, the capital of the European Union. The new service will mark Jetairfly’s first U.S. route, Florida’s only nonstop connection to Brussels, and MIA’s 14th European destination.
With Boeing 767-300 ER aircraft featuring Economy and Comfort service, Jetairfly will begin the new service on April 4, 2014 with flights on Mondays and Fridays. Bookings are scheduled to be available at the end of October.
Additional new routes scheduled this year from Miami are: Oranjestad, Aruba by new carrier Aruba Airlines on September 15; Calgary by WestJet in October; and Milan, Italy and the Brazilian destinations of Curitiba and Porto Alegre by American Airlines in November.
Created in 2003, Jetairfly operates a network of 168 routes and connects 107 airports. It has a fleet of 22 modern aircraft and transported 2.8 million passengers in 2012. Jetairfly is part of TUI Travel Belgium, the largest tourism group in Belgium, and of TUI Travel PLC, the largest Pan-European tourism group, operating a fleet of 141 aircraft and offering a wide range of other services.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 767-341 ER OO-TUC (msn 24844) prepares top taxi from the Brussels base.
Boeing (Chicago) and FedEx Express (Memphis), an operating company of FedEx Corp. (Memphis), yesterday (September 4) celebrated the delivery of the company’s first 767-300 freighter. The delivery supports the FedEx strategy to modernize its fleet with more efficient freighters.
The 767 Freighter is an ideal upgrade for the fleet serving the FedEx Express domestic network, providing improved fuel, maintenance and cost savings over the MD-10 freighters it will replace. FedEx Express gains additional efficiency through the ability to share parts, tooling and flight simulators between the 767 and the more than 70 757 freighters already in its fleet.
The 767 freighter is based on the popular 767-300 ER (extended range) passenger airplane. Able to carry approximately 58 tons (52.7 tons) of revenue cargo with intercontinental range, the 767 Freighter is ideal for developing new long-haul, regional or feeder markets.
The airplane joins other Boeing freighters in the FedEx fleet such as the MD-10, MD-11, 757 and the 777.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 767-3S2F N101FE (msn 42706) is pictured at Paine Field near Everett, WA on a test flight prior to the official hand over.
Transaero Airlines to add new routes to Dubai and Havana, announces a new interline agreement with Virgin America
Transaero Airlines (Moscow) will add new service from Moscow (Vnukovo) to Dubai (six days per week) starting on September 20 per Airline Route.
Additionally the Russian carrier will launch a new weekly route Moscow (Domodedovo) to Havana for the winter season starting on December 28 through March 29, 2014.
Transaero has also announced the launch of its Interline Agreement and Special Pro-Rate Agreement (SPA) with Virgin America (San Francisco):
The interline agreement will provide opportunities for Transaero’s passengers to acquire e-tickets for travel between Moscow and the extensive route network of Virgin America in the United States via the connecting cities of Los Angeles and New York. And, vice versa, US travellers can now start their journey with Virgin America’s flight to Los Angeles or New York and continue their journey to Moscow on board of Transaero’s flights.
The Special Pro-rate Agreement signed between the Russian and US carrier allows passengers to buy tickets for the flights of these two airlines on certain routes at special competitive prices. Special fares are available on the routes between Moscow with a connection in Los Angeles to such US cities as Washington, Boston, Fort Lauderdale/Hollywood, Orlando, Dallas/Fort Worth, Seattle/Tacoma, Portland (Oregon), San Jose, San Francisco and Las Vegas. Moreover, the through fares also offered on routes between Moscow and San Francisco or Las Vegas via New York.
At present, Transaero operates scheduled nonstop flights to three US cities: New York (JFK), Miami and Los Angeles. In addition to this, Transaero’s passengers can take advantage of the airline’s current partnership agreements with the leading airlines to get to a number of destinations in North America. Under the code-share agreement with Singapore Airlines Transaero offers direct flight from Moscow to Houston. In accordance with the code-share agreement with Virgin Atlantic passengers can travel between Moscow and San Francisco, Boston and Orlando with a connection in London. The Interline agreement with United Airlines allows passengers to get to nearly all destination points of this airline in the US.
Copyright Photo: Dave Glendinning/AirlinersGallery.com. Boeing 767-3P6 ER EI-UNA (msn 26233) taxies at London (Heathrow).
El Al Israel Airlines (Tel Aviv) reported a net profit of $3.7 million in the second quarter. This is a reversal from a loss of $6.1 million in the same quarter a year ago.
The company issued this financial statement:
Profits for this quarter totaled about $3.7 million, compared to a loss of $6.1 million in the second quarter of 2012
Company revenues for the second quarter of 2013 totaled $529.7 million, compared to $516.8 million in the second quarter last year
The ratio of gross profits to turnover increased from 15.1% to 15.5% and totaled $82.0 million compared to $78.1 million in the parallel quarter of last year
Elyezer Shkedy, El Al’s President & CEO:
“The Company continues to match its activities to the realities of the market place and thus continues to become more efficient. During the second quarter of 2013 the Company increased the number of available seats for sale by 7% compared to the parallel quarter of last year, while maintaining a similar level of expenditure and a reduced number of employees. Efficient use and operation of the Company’s aircraft brought about passenger load factors of about 82.4%.
The Company reports a profit as well as positive cash flows, while it continues with its investment plans, including payments for purchases of new Boeing 737-900 aircraft as part of a business transaction for the purchase of six aircraft with options for two more.
The first 737-900 of this contract will enter in service with El Al in October 2013.
As part of the Company’s overall business and operational assessment, El Al continues to reduce the number of aircraft types in operation. During the coming months we plan to remove the fleet of 767-200s, bringing the number of aircraft types we operate to four only (reduced from seven, that included our 747-200s, the 757s and the 767-200s).
During the second quarter, El Al continued to develop its strategic plans in response to world market trend in international civil aviation (including the open-skies policies). The Company is presently crystallizing new plans for short-haul flights using five 737-800s on routes still to be decided by the Company’s Management. The aim is to integrate the new plans and schedules no later than the summer of 2014.
Further to the agreement that was achieved with the Government and the Ministry of Finance when the open skies policy into effect, the Government’s portion for security expenditures for Israeli airlines was increased to 85%, starting 1.5.2013. The balance of the agreement will be implemented during 2013 and in early 2014, if the appropriate terms and conditions of the agreement are met.
The FIMI Investment Company announced that they are giving the Company an extension of 45 days to finalize the conditions for the agreement. This period ends on August 29, 2013. They noted that the negotiations on a new comprehensive labor agreement are advancing slowly.
I do hope that the Company employees grasp the importance of reaching a new agreement. I expect the members of the workers’ committee to act responsibly and to take immediate action to formulate a new collective labor agreement, which, amongst other things, will enable FIMI to become an active investor in El Al; will allow the Company to advance and grow; and will enable the Company to face the open skies policies and the ever-increasing competition successfully.
I’d like to thank the entire El Al family – on the ground, in the air, in Israel and abroad – who work so determinedly and devotedly to overcome the difficult challenges facing us. We are committed to providing our customers with the very finest services and products through our ongoing efforts to surmount and meet the challenging market conditions.”
El Al Israel Airlines published its financial reports summarizing the first half of 2013, as well as for the second quarter of the year. The main points follow:
Financial results for the second quarter 2013:
- Revenues for the present quarter totaled $529.7 million, compared to $516.8 million in the parallel quarter of last year, an increase of about 2.5%. Revenues from passengers increased by about 4%, the result of the increased number of passengers carried, after offsetting the drop in revenue per passenger-kilometer. Revenues from charter services dropped by about 12.9% as a result of reduced activity of our Sun D’Or charter subsidiary. Cargo revenues dropped by about 6.4% as a result of the reduction ton-kilometer revenues and the general reduction in cargo activities.
- Operating expenses in the second quarter under review increased by about 2% to about $447.8 million, compared to $438.7 million in the parallel quarter of last year, largely as a result of increased volume of activities, the ratio of which on turnover during the second quarter of 2013 dropped from about 84.9% to about 84.5% during this quarter. In addition to an increase in cost of salaries as explained further on, and changes in currency exchange rates, after offsetting the reduction in fuel expenses – as explained further on. During the 2nd quarter of 2013 the number of permanent and temporary employees in the Company was on average 5,906, compared to 5,938 in the parallel quarter of last year.
- Aviation fuel costs during this quarter dropped by about $7.5 million compared to in the parallel quarter of last year, a reduction of about 4.0%. Market prices of aviation fuel during the quarter dropped by about 6.9% on average, compared to in the parallel quarter of last year. During the reported quarter the Company recorded costs of $3.9 million as a result of a decrease in fair value of hedging transactions that are not recognized for accounting purposes, compared to costs of about $6.5 million for similar hedging costs in the parallel quarter of last year. On the other hand the increased activities increased fuel costs during the quarter by about $5.8 million, while aviation-fuel hedging expenses grew by about $2.0 million during this quarter, compared to in the parallel quarter of last year ($3.8 million compared to $1.8 million). Fuel costs during the reported quarter totaled about 40.0% of our total operating expenditures, compared to 42.5% in the parallel quarter of last year.
Cost of salaries during the 2nd quarter of 2013 rose in comparison with the parallel quarter last year. Most of the increase is the result of the strengthening of the shekel exchange rate vis-à-vis the dollar, compared to in the parallel quarter of last year, plus the creeping increase in salaries.
- Gross profits for the quarter totaled about $82.0 million (a ratio of about 15.5% on turnover), compared to $78.1 million in the parallel quarter last year (a ratio of 15.1% on turnover).
- The operating profits were about $7.0 million compared to an operating profit of $2.4 million in the parallel quarter of last year.
- Financing. In this quarter the Company had net financing costs (after offsetting financing revenues) about $2.1 million, compared to net financing costs of $10.4 million in the parallel quarter of last year. The change is largely the result of the benefits of receipts from foreign currency hedging but that was set off by the increases caused by changes in exchange rates.
- Net profits for the second quarter of 2013 totaled $3.7 million, compared to a loss of about $6.1 million in the parallel quarter of last year.
- Cash flow from regular activities during the 2nd quarter 2013 totaled about $47.8 million, compared to $14.1 million in the parallel quarter of last year. Cash flow for the first 6 months of the year totaled about $128.3 million.
- The EBITDA for El Al for the second quarter of 2013 totaled about $31.9 million. Compared to $29.7 million in the parallel quarter of last year.
Results for the first half of 2013:
- Revenues for the first half of this year totaled about $960.7 million, compared to $945.9 million in the parallel quarter of last year, an increase of about 1.6%.
- Operating expenditure for the first half of 2013 totaled about $840.9 million, compared to $827.3 million in the parallel quarter of last year, an increase of about 1.6%. The change is largely the result of increased costs of salaries as explained below, while the ratio on turnover remains almost unchanged – about 87.5% in the reported half-year.
- Gross profits for the six months totaled about 12.5%, reaching about $119.8 million, compared to $118.6 million in the parallel quarter of last year.
- Operating losses for the first half of 2013 totaled about $29.3 million, compared to an operating loss of about $21.4 million in the parallel quarter of last year.
- Financing. In the first half of 2013 the Company reported net financing costs (after offsetting financing revenues) of about $9.1 million. This compares to net financing costs of about $18.5 million in the parallel quarter of last year. The change is largely the result of the benefits of receipts from foreign currency hedging but that was set-off by the increases caused by changes in exchange rates.
- Net losses for the first half of 2013 totaled about $28.8 million, compared to a net loss of about $29.4 million in the parallel quarter of last year.
- El Al’s EBITDA for the first half year totaled about $20.7 million, compared to EBITDA of $33.1 million in the parallel quarter of last year.
- As of June 30, 2013 the Company’s cash on hand, cash equivalencies and short-term deposits totaled $121.9 million. It should be noted that during the first half of 2013 the Company invested around $75 million in fixed assets, in accordance with the Company’s multi-annual investment program, in addition to prior financing of the new 737-900s. The Company also repaid current loans totaling $42.1 million and obtained loans of $45.6 million, mainly for the purchase of fixed assets.
- Company equity, as at June 30, 2013 totaled $107 million.
As reported above, El Al will soon retire its last Boeing 767-200, bringing down the number of aircraft types to four. The carrier had previously retired the last Boeing 757-200 last year.
When the 767-200s joined the El Al fleet, it was the first plane that allowed a direct, nonstop route to Chicago (O’Hare) and Hong Kong. Later on, two 767-200s were used for opening the nonstop route to Miami.
As part of the renewal process, El Al is adding new Boeing 737-900 ER planes.
Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 767-27E ER 4X-EAE (msn 24832) taxies at Miami.
Jet Asia Airways (Bangkok-Suvarnabhumi) has commenced three times weekly scheduled service from Bangkok’s Suvarnabhumi International Airport to Tianjin’s Bihnai International Airport and also to Nanjing’s Lukou International Airport.
In the past year, Jet Asia Airways has operated more than 200 charter flights to both cities combined. Tianjin and Nanjing are two of the fastest growing secondary cities in China.
“The charter flights now turned scheduled have proven to be popular with the Chinese travelers who wish to avoid stopping over in a primary city and prefer to fly directly to Bangkok. Jet Asia will continue to aggressively exercise ‘first mover advantage’ to capitalize on untapped markets between China and Thailand,” said Mr. Chairat Sangchan, Jet Asia’s Managing Director.
Chinese arrivals into Thailand reached 2.78 million passengers in 2012 and is expected to grow to more than 3.5 million in 2013.
Copyright Photo: Jay Selman/AirlinersGallery.com. Former United Airlines Boeing 767-222 HS-JAB (msn 21868) arrives back at the Bangkok (Suvarnabhumi) base.
Air Niugini (Port Moresby) added a new weekly route to from Port Moresby to Bali, Indonesia on August 5.
The company is also upgrading its cabin and issued this statement:
It is with great pride that we introduce the first of our retro-fitted aircraft, Boeing 767 P2-PXW.
P2-PXW was away for about 2 and a half months being retro-fitted and now boasts a configuration of 28 Business Class and 160 Economy Class seats. Customers can expect an enhanced, sleek new look cabin interior and the most exciting feature will be state-of-the-art inflight entertainment experience. In brief this is what customers will enjoy on P2-PXW;
• An upgraded and new colour scheme mixing grey & red for the seats
• A completely new seat in Business and Economy Class
• 28 Business Class seats – Cocoon style seats with lie-flat seats
• 160 Economy Class seats – In-seat videos
• New Inflight entertainment offering in both classes – Movies on demand
Basically customers enjoy extra comfort whilst enjoying the wide range of Inflight Entertainment – TV Shows, Movies, Audio recordings and even games all from their individual in-seat screen.
We have a few preliminary pictures to share for your reference:
|Front view||Back view|
|Front view||Back view|
Additional information to note:
• The 2nd Boeing 767, P2-PXV will be leaving for the upgrade of seats and IFE. The configuration will be the same as P2-PXW.
• Both Boeing 737 aircraft will also be retrofitted with the new seats and the IFE. They depart later in the year.
Top Copyright Photo: Peter Gates/AirlinersGallery.com (all others by Air Niugini). Boeing 767-341 ER P2-PXV (msn 30341) will be the second Boeing 767 to receive the new interior. The company also has a Boeing 787-8 on order for delivery next year.
Domestic Route Map:
International Route Map:
Hawaiian Airlines (Honolulu) is planning to operate two new long-range routes to Hawaii from Oakland next summer. According to Airline Route, the company will operate the Oakland-Kona (Hawaii) route four days a week from June 13 through August 15, 2014 and the Oakland-Lihue (Kauai) route three days a week from June 15 through August 15, 2014. Both routes will be flown with Boeing 767-300 ERs.
Copyright Photo: Clement Alloing. Boeing 767-3CB N588HA (msn 33466) is pictured at Toulouse, France.
FedEx Pilots’ Union: Report on UPS Boeing 747 crash highlights the need for new regulations on the carriage of Lithium Batteries
The FedEx Express Pilots Union (FedEx Express) (Memphis) has issued this statement reference the release of the Accident Report on the UPS Airlines (Atlanta and Louisville) Boeing 747-400F freighter crash at Dubai (please see our previous report). At the heart of the issue, are lithium batteries safe on any airplane?:
On September 3, 2010, our industry lost two fellow aviators when UPS Flight 6 crashed near Dubai, United Arab Emirates (UAE). The UAE General Civil Aviation Authority (GCAA) released its final report concerning the investigation into this fatal crash. The GCAA, while not pinpointing the origin of the fateful blaze, determined that the ensuing fire was promulgated by lithium batteries and found that smoke-detection equipment took too long to alert the crew.
The report provides recommendations specific to air cargo fire safety. The FedEx Master Executive Council (MEC) joins Air Line Pilots Association (ALPA), Int’l in praising the GCAA for its thorough report. The report makes unmistakably clear the dangers of carrying large quantities of lithium batteries. “As cargo pilots, we are fully aware of the potential dangers associated with the carriage of lithium batteries,” said MEC chairman Captain Scott Stratton. “These pilots’ lives were tragically cut short as they valiantly tried to bring their crippled aircraft back to the ground. Through their actions, they were able to prevent a much larger disaster from occurring. We owe it to them as well as to all of those who fly this nation’s commerce every day, to ensure that regulatory directives are harmonized across the globe and robust enough to preclude future events such as this.”
The GCAA recommended that the Federal Aviation Administration (FAA) and its European counterpart develop better firefighting standards and equipment for cargo planes, with visual warnings about where a fire is located. The FedEx MEC strongly believes that the United States must take a leadership role in protecting aircraft against the possibility of catastrophic fires caused by lithium batteries. The improvement in regulations covering the transportation of large quantities of lithium batteries must proceed immediately in order to begin to eliminate this deadly hazard. “Now is the time for the U.S. government to act to ensure the safety of our skies,” said FedEx Legislative Affairs chairman Captain Fred Eissler. “We will continue to work with our government leaders, dangerous goods regulatory authorities, and our fellow airline pilots to address the safety issues and concerns found in the GCAA report.”
“The FedEx pilots are committed to working with industry and government leaders to minimize the risks associated with the carriage of dangerous goods,” continued Captain Stratton. “The GCAA’s report adds to the building body of evidence that clearly shows much more effort is needed to facilitate negating the risks associated with the carriage of lithium batteries.”
Copyright Photo: Duncan Kirk/AirlinersGallery.com. The first Boeing 767-300F for FedEx Express is being prepared for its first flight at Paine Field near Everett, WA. 767-3S2F N101FE (msn 42706) taxied to the runway yesterday afternoon.
United Airlines (Chicago) today reported second-quarter 2013 net income of $521 million, or $1.35 per diluted share, excluding $52 million of special charges. Including special charges, UAL reported second-quarter 2013 net income of $469 million, an increase of 38 percent year-over-year, or $1.21 per diluted share.
- UAL generated $10 billion of revenue in the second quarter of 2013, its highest ever second-quarter revenue result.
- Leading the U.S. airline industry in year-over-year passenger revenue per available seat mile (PRASM) growth for the second consecutive quarter, United’s PRASM increased 1.0 percent in the second quarter compared to the second quarter of 2012.
- Second-quarter consolidated unit costs (CASM), holding fuel rate and profit sharing constant and excluding special charges and third-party business expense, increased 4.5 percent year-over-year on a consolidated capacity (available seat miles) reduction of 2.1 percent. Second-quarter consolidated CASM increased 0.7 percent year-over-year.
- UAL ended the second quarter with $7.0 billion in unrestricted liquidity.
Second-Quarter Revenue and Capacity
For the second quarter, total revenue was $10.0 billion, an increase of 0.6 percent compared to the same period in 2012. Second-quarter consolidated passenger revenue decreased 1.1 percent year-over-year to $8.7 billion, on a consolidated capacity decrease of 2.1 percent year-over-year. Cargo and other revenue in the second quarter increased 13.8 percent versus the second quarter of 2012, or $162 million, to $1.3 billion.
Consolidated revenue passenger miles (RPMs) decreased 1.7 percent on a consolidated capacity decrease of 2.1 percent year-over-year in the second quarter, resulting in a consolidated load factor of 84.7 percent, the highest second-quarter consolidated load factor in United’s history.
Second-quarter consolidated PRASM increased 1.0 percent compared to the same period in 2012. Consolidated yield for the second quarter increased 0.6 percent year-over-year.
Mainline RPMs in the second quarter decreased 2.1 percent on a mainline capacity decrease of 2.4 percent year-over-year, resulting in a mainline load factor of 84.9 percent. Second-quarter mainline yield increased 0.5 percent compared to the same period in 2012. Second-quarter mainline PRASM increased 0.7 percent year-over-year.
Total operating expenses decreased $133 million, or 1.4 percent, in the second quarter versus the same period in 2012. Excluding special charges, second-quarter total operating expenses increased $21 million, or 0.2 percent, year-over-year.
Second-quarter consolidated and mainline CASM increased 0.7 and 1.3 percent year-over-year, respectively. Second-quarter consolidated and mainline CASM, excluding special charges and third-party business expense, increased 1.1 percent and 1.8 percent, respectively, compared to second-quarter 2012. Third-party business expense was $170 million in the second quarter of 2013.
In the second quarter, consolidated and mainline CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 4.5 percent and 5.2 percent, respectively, compared to the second quarter of 2012.
Liquidity and Cash Flow
UAL ended the second quarter with $7.0 billion in unrestricted liquidity, including $1.0 billion of undrawn commitments under its revolving credit facility. During the second quarter, UAL generated $1.1 billion of operating cash flow. The company’s gross capital expenditures and purchase deposits for the quarter were $549 million. The company made debt and capital lease principal payments of $540 million in the second quarter, including $144 million of pre-payments.
Finance, Network and Fleet
- United issued $300 million of senior unsecured notes due 2018 at an interest rate of 6.375 percent.
- During the quarter, the company expanded its industry-leading global route network, launching new nonstop service between Paris and San Francisco; between Tokyo and Denver and between Shannon, Ireland, and Chicago. The company also launched new nonstop service to Austin, Texas; Charleston, S.C.; Fairbanks, Alaska; Edmonton, Alberta, Canada; Grand Rapids, Mich.; Guatemala City, Guatemala; Mobile, Ala.; Portland, Ore.; Saint George, Utah; San Jose, Costa Rica; San Jose del Cabo, Mexico; Traverse City, Mich.; Vancouver, British Columbia, Canada; and Wichita, Kan. United also added three new cities to its network: Dickinson, N.D.; Fort McMurray, Alberta, Canada and Santa Fe, N.M. The company announced future new nonstop markets, including the company’s first nonstop service to St. Lucia, as well as additional service to Austin, Texas, and Gunnison, Colo.
- United welcomed back the Boeing 787 Dreamliner with commercial service between Houston and its other domestic hubs. The airline launched the highly anticipated Denver to Tokyo-Narita service in June, marking a successful return of the Dreamliner to United’s international skies. United also launched temporary 787 service from Houston to London in June, and in August the company will start additional 787 international service from Houston to Lagos, Nigeria, and from Los Angeles to Tokyo and Shanghai.
- The company increased its Dreamliner order to 65. United will be the North American launch customer for the Boeing 787-10. The company also converted its existing order for 25 A350-900s into A350-1000s and added an additional 10 aircraft to the order, totaling 35 aircraft. United expects delivery for both the 787-10 and A350-1000 beginning in 2018, enabling the airline to further modernize its international widebody fleet by replacing older, less efficient aircraft to reduce fuel and operating costs, enhance the customer experience and maximize network opportunities.
- United will introduce 70 Embraer 175 aircraft into the United Express fleet beginning in 2014. These aircraft – with 76 seats, a larger first-class cabin and larger overhead bins – will be operated by SkyWest Airlines, Inc. and another United Express carrier, with deliveries expected in 2014 and 2015.
- The company took delivery of six Boeing 737-900 ERs and removed from service two Boeing 757-200s and the last five Boeing 737-500s and the last five Boeing 767-200s from its fleet.
- The company executed a definitive purchase agreement with AltAir Fuels for 15 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel to be used on flights departing LAX in 2014. AltAir Fuels’ renewable jet fuel is expected to achieve at least a 50 percent reduction in greenhouse gas emissions on a lifecycle basis.
Product, Loyalty Program and Facilities
- United reached a milestone of being the only U.S. carrier offering 180-degree flat-bed seats and personal on-demand entertainment in premium cabins on all scheduled, long-haul international flights from the continental U.S.
- The company continued outfitting aircraft with global satellite Wi-Fi, offering inflight connectivity on long-haul international flights. The airline now has 57 aircraft complete and is installing satellite Wi-Fi at a rate of over 25 aircraft per month for the remainder of 2013.
- The airline introduced its 200th aircraft with live television, 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 launched subscription options that offer customers access to Economy Plus seating or pre-paid checked baggage charges for a year, providing new choices for customers to tailor their travel experiences.
- United introduced a revenue component to its MileagePlus premier status qualification requirements for the 2015 program year.
- United debuted the MileagePlus Small Business Network, a first-of-its-kind loyalty program that enables businesses to earn and redeem miles by purchasing goods and services from the program’s vendor partners, including leading providers of printing, shipping, credit card payment processing, office supplies and computing services.
- United opened its new Terminal B south concourse at Houston’s George Bush Intercontinental Airport. The $97 million south concourse is a new 225,000-square-foot facility dedicated to United Express regional flights.
- United signed a 20-year lease extension at Newark Liberty International Airport and committed to invest an additional $150 million in the region’s largest hub to ensure the airport remains one of the country’s premier global gateways. The facility upgrades include a redesign of the airline’s check-in facilities, a new catering facility and an advanced checked baggage screening system.
Top Copyright Photo: Jay Selman/AirlinersGallery.com. During the second quarter United Airlines again retired the last five Boeing 737-500s and the last five Boeing 767-200s from its fleet. Boeing 737-524 N16642 (msn 28903) climbs away from the runway at Charlotte Douglas International Airport.
Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 767-224 ER N69154 (msn 30433) rests between flights at Los Angeles International Airport.
Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), reported its financial results for the second quarter of 2013.
Second Quarter 2013 Financial Results
- Adjusted net income, reflecting economic fuel expense, of $12.6 million or $0.24 per diluted share.
- GAAP net income of $11.3 million or $0.21 cents per diluted share.
- Available seat miles (ASMs) increase of 20.9% year-over-year.
- Cost per available seat mile (CASM), excluding fuel, decrease of 11.2% year-over-year.
- CASM decrease of 9.7% year-over-year.
Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “Our results for the quarter were better than expected thanks chiefly to some good cost control. Demand across all of our geographies remains strong, even overseas where the dollar has strengthened against foreign currencies. In North America, our business is coming back as the rate of industry capacity growth moderated in the quarter while our Neighbor Island business is now performing well. On our international routes we are seeing the strengthening of the dollar undermine some of the excellent results we have had in the last couple of years but this portion of our business remains the core focus of our expansion plans.
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of June 30, 2013 the Company had:
- Unrestricted cash and cash equivalents of $478 million.
- Available borrowing capacity of $70 million under Hawaiian’s Revolving Credit Facility.
- Outstanding debt and capital lease obligations of approximately $767 million consisting of the following:
- $369 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.
- $163 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
- $103 million in capital lease obligations to finance an Airbus A330-200 and two Boeing 717-200 aircraft.
- $58 million outstanding under floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
- $74 million outstanding of Convertible Senior Notes.
- Ranked #1 nationally for on-time performance for the months of March, April and May 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
- Ranked the #1 domestic carrier for travel to Hawai’i by Travel + Leisure.
- Expanded our frequent flyer partnership with American Airlines.
- Announced codeshare and interline agreements with China Airlines for connecting travel through Taipei, Taiwan.
Fleet and Financing
- Financed our next six Airbus A330-200 aircraft deliveries through 2014 with Enhanced Equipment Trust Certificates (EETC).
- Added three new Airbus A330-200 aircraft for North America and International service.
New routes and increased frequencies
- Honolulu to Sendai, Japan three-times-weekly service launched June 25, 2013.
- Honolulu to Taipei, Taiwan three-times-weekly service launched July 9, 2013.
Third Quarter and Full Year 2013 Outlook
The table below summarizes the Company’s expectations for the quarter ending September 30, 2013 and the full year ending December 31, 2013, expressed as an expected change compared to the results for the quarter ended September 30, 2012 or the year ended December 31, 2012, as applicable (the results for which are presented for reference).
|Cost per ASM Excluding Fuel (cents)||7.62||Up 2.5% to up 5.5%|
|Passenger Revenue Per ASM (cents)||12.30||Down 0.5% to up 2.5%|
|Operating Revenue Per ASM (cents)||13.56||Down 0.5% to up 2.5%|
|Passenger Revenue Per RPM (cents)||14.77||Down 2.5% to up 0.5%|
|Passenger Load Factor||83.3%||Up 1 pts to Up 3 pts|
|ASMs (millions)||4,052.2||Up 7.5% to up 10.5%|
|Gallons of jet fuel consumed (millions)||54.5||Up 7% to up 10%|
|Cost per ASM Excluding Fuel (cents)||8.18||Down in the low single digits|
|ASMs (millions)||14,687.5||Up 12.5% to up 15.5%|
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-33A N580HA (msn 28140) lines up to land at Los Angeles International Airport.
Delta Air Lines (Atlanta) is planning to launch nonstop service between Seattle/Tacoma and London (Heathrow) in anticipation of receiving antitrust immunity for its new joint venture with Virgin Atlantic Airways (London). The company issued this statement:
In anticipation of receiving antitrust immunity later this year for its joint venture with Virgin Atlantic Airways, Delta Air Lines will offer new daily nonstop service from Seattle-Tacoma International Airport to London Heathrow Airport beginning March 29, 2014.
New service from Seattle/Tacoma to London Heathrow gives Delta’s customers nonstop access to one of the world’s top business markets and is an important enhancement to Delta’s growing trans-Atlantic and trans-Pacific network from Seattle/Tacoma. As of January 1, 2014, every international Delta flight from Seattle/Tacoma, including the new London service, will feature full flat-bed seats in BusinessElite, Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft.
The Seattle/Tacoma market is one of Delta’s fastest-growing international gateways. In June, Delta added service to Shanghai and Tokyo-Haneda, complementing long-established service to Tokyo-Narita. Delta also has served Beijing and Osaka, Japan from Seattle/Tacoma since 2010.
Through its trans-Atlantic joint venture with Air France-KLM and Alitalia, Delta also offers Seattle/Tacoma area travelers nonstop service to Paris and Amsterdam while also providing connecting service to more than 150 additional destinations beyond those European hubs. With new service to London-Heathrow, Delta will operate flights to eight nonstop international destinations from Seattle.
In December 2012, Delta and Virgin Atlantic announced Delta’s plans to acquire 49 percent of Virgin Atlantic. The carriers intend to form a trans-Atlantic joint venture to optimize schedules and services between the North America and the U.K. Delta last month obtained unconditional clearance from the European Commission and the U.S. Department of Justice to proceed with the investment transaction. Now both carriers are awaiting U.S. Department of Transportation approval of antitrust immunity to implement their joint venture.
On July 3, Delta and Virgin Atlantic launched reciprocal codesharing across 108 routes to 66 destinations throughout North America and the U.K. With the new Seattle service, Delta will operate 10 daily nonstop flights to London Heathrow from six destinations including Detroit, Minneapolis/St. Paul, New York-JFK, Boston and Atlanta.
Delta will operate Seattle-London Heathrow service using a 210-seat Boeing 767-300 ER aircraft featuring 35 full flat-bed seats in BusinessElite, 32 seats in Economy Comfort and 143 Economy class seats.
Flight details for Seattle-London Heathrow Service:
|37||SEA at 6:40 p.m.||LHR at 12:05 p.m. (following day)||March 29, 2014|
|36||LHR at 12:20 p.m.||SEA at 2:40 p.m. (same day)||March 30, 2014|
Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 767-332 ER WL N193DN (msn 28450) lands at Baltimore/Washington.
TUIfly (TUIfly.com) (Hannover) will launch new long-haul leisure routes from Hamburg in November to the Caribbean. According to Airline Route, twice-weekly flights will be started to Barbados on November 22, Cancun on November 2, La Romana on November 29 and Punta Cana on November 1. The four new routes will be flown by TUI partner airline Arkefly (Amsterdam) Boeing 767-300s.
US Airways Group, Inc. (Phoenix), the parent of US Airways (Phoenix), today announced that its shareholders approved the merger agreement with AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc. (Dallas/Fort Worth).
The merger agreement was approved by the affirmative vote of the holders of a majority of the outstanding shares of US Airways stock, which represented over 99% of the votes cast by US Airways shareholders on the proposal. Of the 132,788,060 shares voted, 132,273,780 shares voted in favor of the proposal; 257,757 shares voted against; and 256,523 abstained. Shareholders also approved other proposals related to the merger.
Doug Parker, chairman and CEO of US Airways, and incoming CEO of the combined company, said, “We are pleased that our shareholders overwhelmingly supported our merger with American Airlines. This approval is a major milestone on our path to completing the merger, and we continue to make excellent progress overall thanks to the focused efforts of the dedicated representatives from both companies. By bringing together two highly complementary networks and generating significant revenue synergies, the new American Airlines will deliver enhanced value for its shareholders. I want to thank our shareholders, our customers and our more than 100,000 dedicated employees for their support throughout this process and look forward to moving forward as an even stronger airline.”
As previously announced, AMR and US Airways agreed to combine to create the new American Airlines, a premier global carrier. Headquartered in Dallas-Fort Worth, the new American Airlines will become a highly competitive alternative for consumers to other global carriers and is expected to offer more than 6,700 daily flights to 336 destinations in 56 countries. The combined airline will offer customers more choices and increased service across a larger worldwide network and through an enhanced oneworld® Alliance. Together, American Airlines and US Airways are expected to operate a mainline fleet of almost 950 aircraft and employ more than 100,000 team members worldwide.
The merger is subject to regulatory approvals, other customary closing conditions and confirmation of AMR’s Plan of Reorganization by the U.S. Bankruptcy Court for the Southern District of New York. The companies continue to expect to complete the combination in the third quarter of 2013.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A330-323X N275AY (msn 370) departs from London (Heathrow).
Bottom Copyright Photo: Andi Hiltl/AirlinersGallery.com. Boeing 767-323 ER N336AA (msn 25193) lands at Zurich.
Condor Flugdienst (Frankfurt) has introduced new “Janosch” Boeing 767-300 logojet. Janosch and Condor are teaming up in support of “A Heart for Children”. Condor has supported this organization for the past year and a half and has contributed a portion of its ticket sales. This includes an auction of aircraft models with the Janosch markings. The proceeds are fully passed on to “the A Heart for Children” fund. The pictured Boeing 7673-330 ER D-ABUE (msn 26984) is covered with the images of the animated heroes and will be the flagship for worldwide attention to the project. All other Condor aircraft will also carry the charity logo and a Janosch character in the Condor logo.
Top Copyright Photo: Nik French/AirlinersGallery.com. D-ABUE departs from Manchester last evening.
Bottom Copyright Photo: Condor. A close-up of the special markings.
Delta Air Lines (Atlanta) will begin renovations funded by a $6.3 million grant from The Delta Air Lines Foundation and will kick-off a corporate sponsorship campaign to refurbish Delta’s historic hangars on the company’s corporate campus. Upon completion of the project, the facility will open to the public as the Delta Flight Museum offering daily tours and a unique private event facility.
The hangars, originally built in the 1940s for Delta’s aircraft maintenance, were repurposed in 1995 as the site of the current Delta Air Transport Heritage Museum. Its mission then was to preserve the history of Delta’s people and culture of exceptional customer service forged by founder C.E. Woolman. The site has served as the backbone of the company’s global headquarters for more than 70 years.
“Returning Delta’s historic hangars to their original glory helps preserve the history and rich Delta employee culture for generations of aviation enthusiasts,” said Tad Hutcheson, vice president – Community Affairs and Chairman of the Board of Directors for the Delta Air Transport Heritage Museum. “The new Delta Flight Museum will offer a one-of-a-kind experience for the Atlantacommunity and visitors from around the world.”
The renovation project will last 12 months and is scheduled to be complete in advance of Delta’s 85th anniversary of commercial aviation service on June 17, 2014. Some of the major improvements include the addition of a welcome theater, installation of an elevator and construction of a new mezzanine level.
When completed, the new museum will offer a full-service event space that will accommodate private events for groups ranging from 100 to 1,200 people for a seated meal service. The facility will be among the largest capacity venues in the Atlanta metropolitan area and will offer a variety of scalable rental options.
The entrance to the Delta Flight Museum will offer convenient access for daily visitors and will include dedicated parking for museum patrons as well as capacity for valet parking services to compliment private functions held in the facility.
The Spirit of Delta will continue to be one of the largest items on display in the museum. The Boeing 767-200 (above, caption below) was purchased by Delta employees in 1982 as an expression of thanks to the company and has been located in the museum since being retired from service in 2006.
The renovation also will include preserving the hangar doors by returning them to their original condition and polishing the concrete floors to retain the distinctive markings created when Delta installed the reinforced concrete needed to handle heavier aircraft as it transitioned from the use of propeller planes to the jet age.
New air conditioning and heat controls will provide a comfortable year-round visitor experience inside the large hangar facility. A full Convair 880 cockpit already owned by the museum along with a Boeing 737-200 flight simulator will be installed as permanent exhibits and a new retail store will be built for visitors to purchase aviation memorabilia and Delta-branded items.
The hangars were designated as an official Historic Aerospace Site by The American Institute of Aeronautics and Astronautics in Feb. 2011, acknowledging them as the oldest surviving buildings currently in use at Atlanta’s Hartsfield-Jackson International Airport.
Delta moved its headquarters from Monroe, Louisiana, to Atlanta in 1941 and began use of the hangars as the primary maintenance facility for its daily commercial flight operations. Aircraft maintenance moved to the site of Delta’s current Technical Operations Center in 1960. In 1990, a group of Delta retirees launched an effort to consolidate Delta memorabilia, archival collections and one of Delta’s first 1940s era Douglas DC-3 aircraft. The effort resulted in the creation of the Delta Air Transport Heritage Museum located in the hangar facility donated by Delta.
Top Copyright Rendering: Delta Air Lines.
Middle Copyright Photo: Bruce Drum/AirlinersGallery.com. “The Spirit of Delta” in the form of donated Boeing 767-232 N102DA (msn 22214) worn several different liveries in its career with Delta. Here is the special “Celebrating 75 Years 2004″ livery at Miami.
Bottom Copyright Photo: Brian McDonough/AirlinersGallery.com. Douglas DC-3-357 NC28341 (msn 3278) lands at Baltimore/Washington (BWI).
Air Canada (Montreal) announced the growth of its leisure carrier subsidiary, Air Canada rouge, is on track to expand to a total of 23 holiday destinations in the Caribbean, Mexico, Florida and Las Vegas for its 2013-2014 winter season.
“We are delighted with the response to Air Canada rouge’s inaugural summer season as it prepares for take-off July 1st,” said Calin Rovinescu, President and Chief Executive Officer, inToronto for a pre-inaugural event with employees and media. “Our plans for growing the Air Canada rouge fleet are on track to serve more holiday destination markets where we can now compete on a more cost effective basis operating our new leisure carrier, while leveraging the strength of Air Canada Vacations. Once Air Canada rouge completes its inaugural summer season to Edinburgh, Venice, Athens and a number of Caribbean destinations, its flying will expand southward for the winter to an additional 13 destinations in the Caribbean, Mexico and select U.S. holiday markets. I would like to commend Michael Friisdahl and his team at Air Canada rouge for overcoming the complexity and challenges of launching a new carrier in record time with professionalism and an impressive sense of purpose. I also congratulate the first Air Canada rouge inflight graduating class who we expect will set an excellent customer service standard for vacation travel.”
“As new Boeing 777-300 ER and 787 aircraft enter the Air Canada mainline fleet, we intend to continue spooling up Air Canada rouge to reach a total of up to 50 aircraft. The growth of our leisure carrier, in tandem with the mainline fleet renewal and international network expansion, is a key element of Air Canada’s overall strategy for sustainable, profitable growth, both at the mainline and leisure carrier. With a renewed, more efficient fleet combined with our award-winning product, Air Canada will be well positioned to expand its mainline global network to new, higher business-demand destinations while Air Canada rouge profitably expands Air Canada’s presence on a lower cost basis in current and future leisure markets that present new opportunities,” concluded Mr. Rovinescu.
Air Canada will take delivery of five new Boeing 777-300 ER aircraft for its mainline fleet between June 2013 and February 2014, and the first three of 37 Boeing 787 aircraft by the summer of 2014. Air Canada is scheduled to take delivery of seven 787 aircraft in 2014 and the remaining 30 between 2015 and 2019.
Air Canada rouge’s July 1 start-up fleet consisting of two Airbus A319 aircraft and two Boeing 767-300 ER aircraft will grow to ten aircraft by the end of 2013 with the addition of six Airbus A319 aircraft by December 2013, and an additional four Airbus A319 aircraft by March 2014, for a total of 14 aircraft by the end of the 2013-2014 winter season.
A number of popular holiday destinations currently served by Air Canada’s mainline carrier will be converted to Air Canada rouge service on a phased-in basis beginning October 2013 through March 2014 as additional aircraft are released by the mainline airline for operation by its leisure carrier.
Air Canada rouge will operate flights to the following popular holiday destinations for its 2013-2014 Winter Schedule. Flights are now available for purchase at aircanada.com and through travel agents:
Mexico: flights from Toronto to Cancun, Puerto Vallarta*, Cabo San Lucas* and Huatulco*, subject to government approval.
United States: flights from Toronto and Montreal to Orlando and Las Vegas, and from Toronto to Sarasota*, Florida.
Caribbean: flights from Toronto to Montego Bay, Jamaica; Grenada*; St. Kitts*; Grand Exuma, Bahamas; Curacao*, Netherlands Antilles; and La Romana*, Dominican Republic. This is in addition to Air Canada rouge service commencing with its summer 2013 schedule on July 1 from Toronto year-round to 10 Caribbean and Central America destinations: Kingston, Jamaica; the Dominican Republic (Punta Cana, Puerto Plata and Samana), Cuba (Varadero, Cayo Coco, Holguin and Santa Clara) and Costa Rica (San Jose and Liberia).
* Seasonal services where indicated. All other routes are year-round services.
All flights will be operated using Airbus A319 aircraft, with the exception of Toronto-Las Vegas and Toronto-Montego Bay flights that will be operated with Boeing 767-300 ER aircraft.
Air Canada rouge’s Boeing 767-300 ER aircraft feature a two-cabin configuration with three customer comfort options including rouge, rouge Plus with preferred seating with additional legroom, and, beginning in winter 2013, Premium rouge offering both additional room and enhanced service. The airline’s Airbus A319 aircraft are configured with rouge and rouge Plus preferred seating. All flights will offer customers streamed wireless inflight entertainment, stylish and modern cabin interiors with innovative new seats, and the ability to earn and redeem Aeroplan miles.
Copyright Photo: Greenwing/AirlinersGallery.com. Air Canada rouge’s pilots have been performing proving flights to Dublin before the official July 1 launch. Boeing 767-33A ER C-GHPE (msn 33423) taxies at DUB.
Expanding Route Map:
Hawaiian Airlines (Honolulu) yesterday (June 25) launched its inaugural flight from Honolulu to Sendai, its fifth gateway in Japan and 10th new international destination it has introduced or announced in less than three years.
Passengers of the inaugural flight enjoyed a festive island-style send-off at Honolulu International Airport before boarding, featuring Hawaiian music and hula, a traditional Hawaiian blessing, presentation of fresh flower lei, and a special performance honoring the Japanese culture.
Copyright Photo: Hawaiian Airlines Customer Service Agents Starlynn Kuaana (left) and Charael Perry (right) greet passengers with lei as they board the inaugural flight from Honolulu to Sendai today. Sendai is Hawaiian Airlines’ fifth gateway in Japan and 10th new international destination it has announced or introduced in less than three years. (PRNewsFoto/Hawaiian Airlines).
Sendai is the largest city in the Tohoku region of northern Honshu, which has a population of more than 9 million. Sendai is known in Japan as “Mori no Miyako,” or Forest City, for its many green spaces in its city center. It is also known for its high quality rice and for its summer Tanabata Festival, which draws thousands of visitors from across Japan.
Hawaiian’s Honolulu-Sendai service is the first scheduled service between Sendai and Hawai’i since another carrier left the market in 2004, and among the first new services to be introduced at Sendai Airport since it was closed for more than a month in 2011 due to damage caused by the Tohoku earthquake and subsequent tsunami.
Hawaiian’s flight HA 441 departs Honolulu International Airport on Tuesdays, Thursdays, and Saturdays at 12:55 p.m. (1255), cross the international dateline, and arrive at Sendai International Airportat 4:30 p.m. (1630) the following day. The return flight HA 442 will then continue to Sapporo’s New Chitose Airport at 5:45 p.m. (1745) on Wednesdays, Fridays and Sundays, arriving at New Chitose at 7:00 p.m. (1900) before departing to Honolulu at 9:10 p.m. (2110), crossing the international dateline and arriving in Honolulu at 9:50 a.m. (0950) the same day.
Hawaiian operates the Honolulu-Sendai-Sapporo flights using its fleet of Boeing 767-300E R aircraft that seat up to 264 passengers.
The addition of Sendai to Hawaiian’s international network follows the launches of service to Tokyo in November 2010, Seoul in January 2011, Osaka in July 2011, Fukuoka in April 2012, New York in June 2012, Sapporo in October 2012, Brisbane in November 2012 and Auckland in March 2013. Hawaiian previously announced new service to Taipei, Taiwan in July 2013. New nonstop service will begin between Honolulu and Beijing, China in April 2014, subject to government approvals.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-33A ER N591HA (msn 33423) arrives in Los Angeles.
DHL Air (UK) (East Midlands) is the official air transport of the Aspinall Foundation’s “Back to the Wild” campaign to transport a western lowland gorilla family from the Port Lympne Wild Animal Park to Africa. The cargo airline has decorated this Boeing 767-300 freighter with these special markings for the special transport.
The Foundation issued this statement:
The family is headed by Djala, a 30 year old silverback (below).
The family’s journey is part of The Aspinall Foundation’s Back To The Wild Campaign in conjunction with Port Lympne Wild Animal Park, and has been made possible by generous gifts from supporters of the charity, our partner DHL and the Gabonese Government.
But we still need your help to continue sending animals like Djala and his family ‘Back To The Wild’.
For more information: CLICK HERE
Phil Couchman, CEO of DHL Air, issued this statement:
Last year we undertook a very special request to transport three critically endangered black rhino from The Aspinall Foundation’s Port Lympne Wild Animal Park to a protected reserve in Tanzania. Not something we do normally but, hey, this is DHL. So we did it.
Very soon we’ll be providing another essential service to protect a threatened cohabitant of our planet: moving a family of critically endangered western lowland gorillas from The Aspinall Foundation’s Port Lympne Wild Animal Park to Africa as part of the ongoing and ambitious conservation initiative, created by The Aspinall Foundation – Back To The Wild.
This move is extra special as the “big daddy” was orphaned in Africa 30 years ago and is finally going home – with his family.
Copyright Photo: Karl Cornil/AirlinersGallery.com. DHL Air’s Boeing 767-3JHF ER G-DHLH (msn 37806) arrives at Brussels with the special “Djala’s Journey Home-Gorillas in Transit-Aspinall Foundation” markings. The aircraft arrived from Cincinnatti and departed for Lagos, Nigeria.
Atlas Air (New York) has signed an agreement to operate a VIP-configured Boeing 767-200 passenger aircraft in CMI service for MLW Air, LLC. Flights are expected to commence this summer.
Under the new CMI (Crew, Maintenance, Insurance) agreement, Atlas Air will operate MLW Air’s unique, all-first class, 102-seat Boeing aircraft, extending Atlas Air’s innovative CMI service solution and its growing 767 aircraft platform into very high-end passenger transport. The flights will be marketed as charters to sports teams, entertainers and other high-profile users.
MLW Air’s Boeing 767-277 N767MW (msn 22694) is the only all-first class 767 commercial charter aircraft with worldwide operations registered with the Federal Aviation Administration. The dual-aisle plane features first class seats with 60-inch pitch (the distance between a row of seats) in a two-by-two-by-two configuration. The seats recline to 156 degrees for maximum comfort and come with adjustable head and foot rests. The plane is ideal to meet the needs of heads of state, celebrities, diplomats, professional sports teams, entertainers, private parties, tour groups and other charter needs. The client list includes the Dallas Stars and Dallas Mavericks and such entertainers as Bruce Springsteen, the Rolling Stones and Beyoncé.
Atlas Air currently operates 10 Boeing 767s, including three passenger aircraft and seven freighters. Its modern, efficient fleet also includes two VIP-configured Boeing 747-400 passenger aircraft, 37Boeing 747 freighters and a recently acquired Boeing 777 freighter.
Copyright Photo: Brian McDonough/AirlinersGallery.com. Pictured arriving at Washington (Dulles) with the Manchester United team on July 28, 2011 when it leased to Swift Air, the former Ansett Australia (VH-RMF) and Gadair European Airlines (N767AT) wide body 767-277 will now be operated by Atlas Air for MLW Air as N767MW.
American Airlines (Dallas/Fort Worth) has been awarded tentative Los Angeles-Sao Paulo authority. AA has applauded the Show Cause Order announced by the U.S. Department of Transportation (DOT), tentatively awarding American with route authority and frequencies to begin service this fall from Los Angeles to Sao Paulo.
LAX currently has no nonstop service to Brazil by a U.S. carrier.
American currently serves Brazil from Miami to Belo Horizonte, Brasilia, Manaus, Recife, Rio de Janeiro, Salvador and Sao Paulo; from New York to Rio de Janeiro and Sao Paulo; and from Dallas/Fort Worth to Rio de Janeiro and Sao Paulo.
Copyright Photo: Ken Petersen/AirlinersGallery.com. Boeing 767-323 ER N369AA (msn 25196) prepares to land at New York (JFK).
Video from Aviation Week on the new livery:
Delta Air Lines (Atlanta) yesterday (June 17) celebrated new nonstop service from Seattle/Tacoma to Shanghai with an inaugural service ceremony. The flight is the latest addition to Delta’s growing Asian gateway in Seattle/Tacoma, as the service, between Seattle-Tacoma International Airport and Shanghai Pu Dong International Airport complements current nonstop service from Seattle/Tacoma to Beijing, Osaka, Tokyo-Narita and most recently, Tokyo-Haneda.
The flight will operate using a 208-seat Boeing 767-300 ER aircraft with 36 full flat-bed seats in BusinessElite, 29 seats in Economy Comfort and 143 Economy class seats.
Shanghai service is Delta’s second route between Seattle/Tacoma and China, following Beijing service which began in 2010. In addition to its Asian routes, Delta operates nonstop service from Seattle/Tacoma to Paris and Amsterdam. This summer the airline will operate more than 45 daily flights to 18 destinations worldwide from Seattle/Tacoma.
Delta’s recent partnership with Virgin Atlantic also provides the opportunity to offer new service between Seattle/Tacoma and London-Heathrow, pending government approval.
In addition, this summer Delta added a fifth daily flight between Seattle/Tacoma and New York-JFK with upgraded BusinessElite service to match the airline’s trans-continental product from Los Angeles and San Francisco to New York.
In Seattle/Tacoma, Delta has enhanced its facility including a new Delta Sky Club, new power ports, expanded ticket counters and lobby renovations as part of its ongoing $3 billion investment to improve products, services and facilities.
Delta’s international expansion and customer enhancements in Seattle are enhanced by a strategic partnership between Delta and Alaska Airlines that benefits customers of both carriers and creates more competition and travel options for consumers in the Pacific Northwest region. Customers traveling on Delta’s new Shanghai service will have easy connection times to 58 U.S. cities via the two airlines’ domestic networks.
From Shanghai, Delta’s partnership with China Eastern will also provide extensive connection opportunities throughout China for customers traveling from Seattle.
Delta’s schedule between Seattle-Tacoma International Airport and Shanghai Pu Dong International Airport:
|589||SEA at 2:30 p.m.||PVG at 5:55 p.m. (following day)||June 16, 2013|
|588||PVG at 12:20 p.m.||SEA at 8:50 a.m. (same day)||June 18, 2013|
Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 767-332 ER N1605 (msn 30198) prepares to land at the Minneapolis/St Paul hub (click on the photo for the full-size view).
Aeroflot conducts a Twitter contest to name its new Far Eastern Airline, reopens the route to Toronto
Aeroflot Russian Airlines (Moscow) is using Twitter to name its new Far Eastern Airline. The company issued this statement:
Aeroflot is calling for its passengers to take part in choosing the name for its new Far Eastern Airline.
At the first stage, Twitter users are welcome to send their proposals of a new regional airline name to Aeroflot official account www.twitter.com/aeroflot with #AFLVostok hashtag until June 25, 2013.
The winning name will be chosen through an Internet vote from a list of Twitter leading proposals and some variants provided by our consultants.
It will be the first time in the history of the Russian civil aviation, when the name of a company is invented with the help of passengers.
The airline on June 2, 2013 relaunched the Moscow-Toronto (Pearson) route from Sheremetyevo Airport Terminal D.
Toronto Pearson International Airport greeted the first Aeroflot flight with a traditional water salute followed by an impressive welcome ceremony.
Aeroflot will provide services to Toronto with Boeing 767-300s on Wednesdays, Fridays and Sundays in accordance with the following schedule:
SU 114 flight leaves Moscow at 10:25 and arrives to Toronto at 12:25 (local time).
SU 115 flight leaves Toronto at 14:00 and lands in Moscow at 07:20 (local time).
On the same date, Aeroflot launched a regular Moscow-Yakutsk-Moscow flight from Sheremetyevo Airport Terminal D. The Yakutsk services will also be flown on Boeing 767-300s.
In other news, the company is considering the grounding and replacement of its three McDonnell Douglas MD-11F freighters due to the mounting operational and maintenance costs according to ch-Aviation.
Top Copyright Photo: Brian McDonough/AirlinersGallery.com (all others by Aeroflot). Boeing 767-306 ER VP-BWX (msn 27960) prepares to land at Dulles International Airport near Washington.
Royal Air Maroc (Casablanca) is planning to restore service to Brazil in December with the Casablanca-Sao Paulo (Guarulhos) being operated three days a week with Boeing 767-300 ERs according to Airline Route.
On the financial side, the state owned airline reported an operating profit of over $83 million for 2012, reversing a previous yearly loss. The government is moving towards privatization for the flag carrier and may seek help from a Gulf carrier.
The airline has also entered into an agreement with Denim Air (Maastricht) to operate two Embraer 190s starting on October 27. According to Airline Route, the Embraers will be operated from Casablanca to Banjul, Bissau, Berlin (Tegel), Bordeaux, Fez, Las Palmas, Marrakech, Nador, Nantes, Ouarzazate, Oujda, Strasburg, Toulouse and Zurich.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 767-3Q8 ER CN-ROV (msn 27686) is pictured on the tarmac at Amsterdam.
US Airways (Phoenix) tomorrow (June 8) will launch daily nonstop service to Sao Paulo, Brazil from its largest hub at Charlotte, North Carolina. The new flight is US Airways’ second destination in South America and complements the airline’s existing nonstop service to Rio de Janeiro from Charlotte. US Airways will operate service to Brazil’s largest city on Boeing 767-200 aircraft with seating for 18 in Envoy, US Airways’ international business class, and 186 in the main cabin.
The flight schedule is as follows:
|Charlotte Douglas International Airport (CLT) – Guarulhos-Sao Paulo Airport (GRU)||Guarulhos-Sao Paulo Airport (GRU) – Charlotte Douglas International Airport (CLT)**|
|802||5:50 p.m.||4:30 a.m.*||803||8:25 a.m.||5:25 p.m.|
|*Flight arrives next day.**First day of operation for Sao Paulo-bound flight is June 9, 2013.|
On March 4, US Airways filed an application with the U.S. Department of Transportation (DOT) for the rights to operate daily, year-round service between Sao Paulo and the airline’s international gateway at Philadelphia. The proposed service would be the airline’s third daily flight to South America and would provide customers in 75 communities with easy one-stop access to Sao Paulo.
Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 767-2B7 ER N256AY (msn 26847) climbs away from the runway at Charlotte Douglas International Airport.
In the current US Airways onboard magazine the airline pays tribute to its past with an article on its heritage logojets (Click on the Slide Show above to see all of the logojets):
United Airlines (Chicago) without any fanfare or publicity retired two classic Boeing types again in late May according to Airline Business. Former Continental Airlines Boeing 737-524 N62631 (msn 27535) operated the last Boeing 737-500 flight (UA 1705) between Cleveland and Houston (Bush Intercontinental) on May 30.
Additionally Boeing 767-224 ER N68159 (msn 30438) operated the last 767-200 flight between Munich and Newark on May 27.
Ironically United had previously retired both types but inherited both types again when the Continental fleet was merged. The 737-500 was previously retired on August 27, 2009 and the 767-200 on March 28, 2005.
Top Copyright Photo: Bruce Drum/AirlinersGallery.com. N62631 when it was with Continental Airlines.
Bottom Copyright Photo: Andi Hiltl/AirlinersGallery.com. Sister ship Boeing 767-224 ER N73152 (msn 30431) lands at Zurich.
Air Canada rouge’s (Air Canada) first newly painted Boeing 767-300 ER aircraft touched down on Saturday morning (June 1) at Mirabel airport from Tel Aviv where it underwent an exterior transformation during a scheduled maintenance check. The plane was flown from Tel Aviv by Air Canada pilots Captain David Lywood, First Officer Kurtis Paproski and Captain John Liska (above).
After being stripped to its aluminum base, painters applied primer, two coats of white and finally used massive stencils to spray on the airline’s distinct red and burgundy branding — about 70 gallons of paint were used over nearly eight days to complete the painting. In order to maximize fuel efficiency by adding minimal weight, the least amount of paint possible is applied while achieving optimal coverage. Following a short period flying Toronto-Dublin for Air Canada in June, starting July 1 the Boeing 767-300 ER plane will fly Air Canada rouge’s three European routes between Toronto (Pearson) and Venice/Athens/Edinburgh and Montreal (Trudeau)/Athens.
The aircraft will now undergo minor interior modifications; Air Canada rouge’s aircraft will be among the first in North America equipped to offer streaming inflight entertainment to customers’ own devices (laptops, tablets, smartphones, etc).
It joins two Air Canada rouge Airbus A319 aircraft already at Mirabel airport, which will initially fly Caribbean routes and are also undergoing interior modifications to reflect the airline’s relaxed, stylish approach to leisure travel. With this delivery Air Canada rouge now has 3 of its 4 startup aircraft, with the last painted Boeing 767-300 ER arriving at Mirabel airport early next week. Air Canada rouge introduced its new inflight crew look earlier this week and also announced that its flight crews would be taking customer service excellence training at the Disney Institute in Orlando, Florida.
Copyright Photo: Air Canada. The crew of the ferry flight pose in front of Boeing 767-33A ER C-GHPE (msn 33423) at Montreal (Mirabel). C-GHPE is the first AC 767 to wear the rouge colors.
Delta Air Lines (Atlanta) this weekend will begin new service between Seattle-Tacoma International Airport and Haneda Airport in Tokyo. Prior to the inaugural flight, Seattle was 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.
Seattle-Haneda service adds to Delta’s growing Asian gateway in Seattle. In addition to Tokyo, Delta will begin new service to Shanghai on June 16, and also operates flights to Beijing and Osaka, Japan. In addition to its Asian gateway, Delta operates nonstop service to Paris and Amsterdam from Seattle. This summer the airline will operate more than 45 daily flights to 18 destinations worldwide from Seattle.
The Haneda flight will operate using Boeing 767-300 ER aircraft at which time every Delta trans-Pacific flight will feature full flat-bed seats in BusinessElite, as well as Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft. The flight also complements Delta’s nonstop service between Seattle/Tacoma and Tokyo-Narita, which upgrades to a Boeing 747-400 on June 1.
Delta’s successful international growth in Seattle is possible, in part, because of its partnership with Alaska Airlines, which operates a domestic hub at Seattle-Tacoma International Airport. The new Tokyo-Haneda flight will benefit from easy connections to more than 55 U.S. cities on Delta and Alaska’s domestic networks.
Delta’s schedule between Seattle-Tacoma International Airport and Haneda Airport:
|Flt 581||SEA at 9:10 p.m.||HND at 11:30 p.m. (following day)||June 1, 2013|
|Flt 580||HND at 12:30 a.m.||SEA at 5:40 p.m. (previous day)||June 3, 2013|
Delta Air Lines this weekend will also begin new nonstop service between Newark’s Liberty International Airport and Paris-Charles de Gaulle Airport. Newark is one of the largest markets from Paris.
The new service will be operated with Boeing 767-300 ER aircraft.
In addition to Newark, this summer Delta will offer flights between Paris and its hubs at New York-JFK, Atlanta, Salt Lake City, Minneapolis-St. Paul, Detroit and Cincinnati, as well as key business markets in Boston, Seattle, Philadelphia and Pittsburgh.
Delta’s schedule between Newark’s Liberty International Airport and Paris-Charles de Gaulle Airport:
|Flt 610||EWR at 6:50 p.m.||CDG at 8:35 a.m.||June 1, 2013|
|Flt 609||CDG at 1:30 p.m.||EWR at 3:50 p.m.||June 2, 2013|
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-332 ER WL N172DZ (msn 29691) arrives at Tokyo (Narita).
American Airlines (Dallas/Fort Worth) today announces daily nonstop service between Miami International Airport (MIA) and Malpensa Airport (MXP) in Milan. The new route will start on November 21.
Daily MIA-MXP Service Schedule (all times local):
- Departs MIA at 5:55 p.m. ET
- Arrives at MXP at 9:35 a.m. CET the following day
- Departs MXP at 11:25 a.m. CET
- Arrives at MIA at 4:40 p.m. ET
The new service between Miami and Milan will be operated as part of American’s joint business agreement with British Airways and Iberia. Through the airlines’ enhanced relationship, American’s customers have access to more than 125 destinations throughout Europe. In addition to the new service from Miami, American also currently serves MXP from John F. Kennedy International Airport (JFK) in New York. The new route will be operated with a Boeing 767-300 with 218 seats.
Copyright Photo: Luimer Cordero/AirlinersGallery.com. Boeing 767-323 ER N7375A (msn 25202) lands at the Miami hub (please click on the photo for the full size view).
Boeing (Chicago) has delivered a 767-300 ER (extended range) to MIAT Mongolian Airlines (Ulaanbaatar), the first-ever direct purchase delivery to the airline.
“This is a momentous step forward for MIAT Mongolian Airlines as we continue to enhance our fleet,” said Jargalsaikhan Gungaa, President and CEO of MIAT Mongolian Airlines. “We are pleased with the comfort, range and payload of the new 767-300ER and we look forward to introducing it into our long-haul fleet.”
Mongolia’s flag carrier completed a historic order in 2011 at the U.S. State Department in Washington, D.C., marking the first time in more than two decades that the airline extended its route network by purchasing Boeing airplanes instead of leasing them.
“We congratulate MIAT Mongolian Airlines on the delivery of their first direct purchase 767-300ER,” said Ihssane Mounir, senior vice president of Sales for Northeast Asia, Boeing Commercial Airplanes. “With the new passenger-pleasing cabin interior and low operating costs, Boeing is confident that the 767-300ER will play an important role as MIAT Mongolian Airlines continues expanding into new markets.”
Copyright Photo: Nick Dean. Boeing 767-34G ER JA-1021 (msn 41519) was handed over to the carrier on May 13.
Air Transport Services Group, Inc. (ATSG) (Wilmington, OH), the parent of ABX Air (Wilmington, OH) and ATI-Air Transport International (Little Rock and Wilmington, OH) reported consolidated financial results for the quarter ended March 31, 2013.
“We made a major investment in our combi business with the U.S. military, placed more of our Boeing 767 and 757 freighters with DHL, and completed the merger of two of our airlines during the first quarter,” said Joe Hete, President and Chief Executive Officer of ATSG. “The results were significant increases in our net income and in our Adjusted EBITDA, compared with the year-earlier quarter. Our baseline business remains solid, and we are moving quickly to capture the rest of the $5 to $6 million in merger synergies we projected a few months ago.”
For the first quarter of 2013, compared with first quarter 2012:
- Revenues were $143.3 million, a decrease of 1.5%.
- Total operating expenses were $126.9 million, down 3.7%, including a $3.8 million reduction in salaries, wages and benefits expense due in large part to reductions in airline related costs prior to the merger of Air Transport International and Capital Cargo International Airlines in March 2013.
- Pre-tax income was $13.6 million, an increase of 26.5%.
- Net earnings from continuing operations increased 27.6% to $8.5 million, or $0.13 per fully diluted share. Net earnings include a non-cash federal income tax provision. The company does not expect to pay significant federal income taxes until 2015.
- First-quarter Adjusted EBITDA was $37.3 million, a 9.5% increase from $34.1 million in the same period of the prior year. This non-GAAP financial measure is defined and reconciled to comparable GAAP results in a table at the end of this release.
- Capital expenditures totaled $59.4 million for the quarter, including the purchase of two 757-200 combi aircraft.
CAM (Aircraft Leasing)
|($ in thousands)||2013||2012||% Chg.|
- On March 31, 2013, ATSG owned 47 aircraft in serviceable condition – 20 leased to external customers and 27 leased to ATSG affiliate airlines.
- The in-service fleet consisted of forty-one 767 freighters, three 757 freighters and three DC-8 combis. A table reflecting aircraft in service is included at the end of this release.
- On March 31, 2012, CAM owned 51 in-service aircraft, including thirty-nine 767s, three 757s, six DC-8s (two freighters, four combis) and three 727 freighters. All of the 727 and DC-8 freighters, one DC-8 combi and one 767 passenger aircraft have since been removed from service.
- Three other aircraft – two 767-300s and one 757-200 – were undergoing passenger-to-freighter conversion as of March 31, 2013.
- Four 757-200 combi aircraft, including one modified in 2012, one purchased in December 2012 and two purchased in January 2013, are completing certification requirements. They will enter service for the U.S. military as replacements for the three remaining DC-8 combis starting later this quarter.
|ACMI Services||First Quarter|
|($ in thousands)||2013||2012||% Chg.|
|Total ACMI Services Revenues||113,051||113,195||(0.1)|
- Signed agreements with DHL in January for four additional freighters, including one 757 and three 767s, to replace the 727 freighters the company operated in DHL’s U.S. domestic network.
- Extended agreements for three 767s operating in DHL’s network in the Mideast.
- Airline-related headcount in the first quarter decreased approximately 26% compared with the beginning of 2012, principally as a result of combining ATI and CCIA operations prior to their merger in March.
- Four 767 freighters leased from CAM were underutilized during the quarter.
|Other Activities||First Quarter|
|($ in thousands)||2013||2012||% Chg.|
- Improved first quarter pre-tax earnings were driven by greater efficiencies and higher volumes at the U.S. Postal Service facilities we operate.
Copyright Photo: Tony Storck. The three remaining McDonnell Douglas DC-8s in service have been delayed in their retirements until later this year as newer aircraft come on line. A fine study of DC-8-62 (F) N41CX (msn 46129) arriving at Baltimore/Washington.
UPS Airlines (United Parcel Service) (Atlanta and Louisville) has unveiled a new look for its flagship Boeing 767 fleet by adding winglets as a part of its sustainability efforts to save fuel and reduce emissions.
These wingtip devices, which are arrow-shaped surfaces attached to the tip of each wing, enhance the overall efficiency of the aircraft, saving fuel by reducing drag while also lowering noise emissions by improving take-off performance. The modifications will save UPS more than six million gallons of fuel each year and reduce carbon dioxide emissions by more than 62,000 metric tonnes. UPS estimates approximately a four percent fuel savings on each 767 flight.
“UPS continues to lead the industry in sustainable business practices,” said David Abney, UPS chief operating officer. “With the widest portfolio of services in the industry, we are constantly looking for ways to reduce emissions, and drive down operating costs so our customers have the solutions they need to compete in a global economy. These winglets are a perfect example of sustainability in action. They are good business and good stewardship.”
UPS currently operates 54 of the 767 aircraft with five on order. The company plans to have winglets on all 767 aircraft by the end of 2014. Winglets are already installed on UPS’s 747, and MD-11 fleets, and the A300-600 has a similar device called a wingtip fence.
The modifications will add approximately five and a half feet of span to each wing, and each winglet is 11 feet tall. Aircraft weight will increase by nearly 3,000 pounds due to the weight of the winglets and the extensive structural reinforcement of the wing structure. Even at this size and weight, the winglets will still reduce the amount of fuel used per flight.
Winglets improve the aerodynamics of the wing by extending the length of the wing and reducing the amount of drag, which is the force that opposes an aircraft’s motion in the air.
The winglet project is a sustainability initiative implemented by UPS Airlines. The company already operates one of the cargo sector’s youngest and most fuel-efficient air fleet, and is working to reduce its carbon intensity an additional 20 percent by 2020 from a 2005 baseline. Other highlights of the airline’s fuel conservation efforts include computer-optimized flight routes, aircraft taxi time management, and alternate-fuel ground support equipment.
Copyright Photo: Joe G. Walker. The first, Boeing 767-34AF ER N304UP (msn 27242) lands at Boeing Field (King County) in Seattle with the new device.
Cargojet Inc. (Cargojet Airways) (Hamilton) announced today financial results for the first quarter ended March 31, 2013 .
For the First Quarter Ended March 31, 2013:
- Total Revenues were $40.7 million, an increase of $0.6 million or 1.5% versus the previous year.
- Gross Margin was $4.9 million, a decrease of of $0.6 million or 10.9% versus the previous year
- EBITDA was $2.7 million (all amounts in Canadian dollars), an increase of $0.8 million or 42.1% versus the previous year
“We are very pleased with the improvement in financial and operating results, as compared to the previous year, despite two less operating days in the quarter”, said Ajay K. Virmani, President and Chief Executive Officer. “We continue to see modest improvements in demand and volumes from all revenue sectors, although overall yields and pricing remain under pressure”. “We will continue to manage our cost prudently and gain efficiencies where available”, he concluded.
Copyright Photo: Rainer Bexten. Boeing 767-223 (F) C-FMCJ (msn 22316) makes a stop at Cologne/Bonn.
Air Canada (Montreal) today issued its final financial report for the first quarter. The company reported an adjusted net loss of C$143 million. Here is the full report:
Consistent with the news release issued on April 22, 2013 disclosing preliminary results for the first quarter of 2013, Air Canada today reported an adjusted net loss of $143 million or $0.52 per diluted share compared to an adjusted net loss of $162 million or $0.58 per diluted share in the first quarter of 2012. On a GAAP basis, Air Canada’s net loss was $260 million or $0.95 per diluted share compared to a net loss of $274 million or $0.99 per diluted share in the same quarter in 2012. First quarter EBITDAR amounted to $145 million compared to EBITDAR of $174 million in the first quarter of 2012.
“In the quarter we made progress towards the sustainable transformation of Air Canada by narrowing our net loss as compared to the previous year. In addition, we reached an important agreement with the Government of Canada on extending Air Canada’s pension funding arrangements to January 30, 2021. This was then followed last week by the launch and pricing of a private offering of enhanced equipment trust certificates (EETCs) — a first for a Canadian airline,” said Calin Rovinescu, President and Chief Executive Officer.
“I would especially like to express our gratitude to the Government of Canada and certain provincial governments for implementing the so-called Cape Town Convention effective April 1, 2013, which helps level the playing field for Canadian airlines by facilitating their access to debt capital markets for financing their aircraft acquisitions on more favourable terms. Significant work over many years was undertaken by Government officials, in conjunction with our legal and finance teams, to permit adoption of the Cape Town Convention in the most optimal way, and I want to recognize these individuals for their outstanding work.
“While the first quarter’s loss was narrowed compared to the previous year, the quarter fell short of our expectations, in part due to a decline in premium travel demand. We are encouraged to see an improvement in second quarter economy and premium class cabin booking trends which are running above last year’s levels, although the yield environment remains challenging. We remain focused on executing on our plan to increase value for our stakeholders and to continue to reduce our cost structure with the upcoming deliveries of five additional Boeing 777 aircraft, the launch of our leisure carrier Air Canada rouge, the transfer of Embraer 175 regional aircraft to Sky Regional, and the development of our international network with Toronto Pearson as its North American gateway airport. Along with ongoing initiatives for revenue generation and cost control, we are confident of continued improvements and a successful performance for the year ahead. I thank our 27,000 employees for their commitment to taking care of our customers and their dedication to helping ensure Air Canada’s long term success.”
First Quarter Income Statement Highlights
First quarter 2013 system passenger revenues were $2.527 billion, an increase of $3 million, on a 1.1 per cent growth in traffic and a 1.1 per cent decline in yield. Passenger revenue per available seat mile (RASM) increased 1.1 per cent from the first quarter of 2012 on a 1.8 percentage point improvement in passenger load factor. Air Canada reported a record passenger load factor of 81.0% for the first quarter of 2013, reflecting an effective approach to capacity management. The overall yield decline versus last year’s quarter was due to a number of factors including: relatively more leisure versus business passengers in part due to a shift of the Easter holiday from the first week of April in 2012 to the last week of March in 2013, flight cancellations due to severe weather and de-icing service delays at Toronto Pearson International airport which adversely impacted business travel demand, increased industry capacity and competitive pricing activities in certain markets, an unfavourable foreign currency impact, and having one less calendar day in February 2013 than in February 2012 on account of the leap year. In the premium class cabin, passenger revenues decreased $38 million or 6.7 per cent on an 8.4 per cent decline in traffic, partly offset by a yield improvement of 1.8 per cent.
Operating expenses increased $6 million from the first quarter of 2012, reflecting decreases in all major line categories with the exception of wages, salaries and benefits, capacity purchase agreements and the category of “other” operating expenses. In the first quarter of 2013, Air Canada recorded a non-cash impairment charge of $24 million related to Airbus A340-300 aircraft (none of which are operated by Air Canada) in depreciation, amortization and impairment expense.
Air Canada’s adjusted cost per available seat mile (“adjusted CASM”), which excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items (such as impairment charges) increased 1.4 per cent compared to the first quarter of 2012.
In the first quarter 2013, Air Canada recorded an operating loss of $106 million compared to an operating loss of $91 million in the same quarter in 2012, a deterioration of $15 million. The deterioration in Air Canada’s operating results was in large part due to flight cancellations caused by severe weather conditions and aircraft deicing service delays at Toronto Pearson International Airport. Air Canada estimates that these events resulted in a $10 million unfavourable net impact on its financial results in the first quarter of 2013.
At March 31, 2013, cash and short-term investments amounted to $2,056 million, or 17 per cent of 12-month trailing revenues (March 31, 2012 – $2,185 million, or 18 per cent of 12-month trailing revenues).
At March 31, 2013, adjusted net debt of $3,987 million decreased $246 million from March 31, 2012, reflecting the impact of lower debt balances, a decrease in capitalized operating leases, partially offset by a decrease in cash balances.
Free cash flow of $147 million increased $7 million from the first quarter of 2012.
In the second quarter of 2013, Air Canada expects its system ASM capacity, as measured by available seat miles (ASMs), to increase in the range of 2.0 to 3.0 per cent when compared to the second quarter of 2012.
Air Canada continues to expect full year 2013 system ASM capacity to increase in the range of 1.5 to 2.5 per cent when compared to the full year 2012. Air Canada also continues to expect its full year 2013 domestic capacity to increase in the range of 0.5 to 1.5 per cent from the full year 2012.
For the second quarter of 2013, Air Canada expects adjusted CASM to be in the range of a decrease of 0.5 per cent to an increase of 0.5 per cent when compared to the second quarter of 2012.
Taking into account the better than expected adjusted CASM result in the first quarter of 2013, Air Canada now expects its full year 2013 adjusted CASM to decrease in the range of 0.5 to 1.5 per cent from the full year 2012.
Air Canada’s outlook assumes Canadian GDP growth of 1.25 to 1.75 per cent for 2013. In addition, Air Canada expects that the Canadian dollar will trade, on average, at C$1.02 per U.S. dollar for the second quarter of 2013 and for the full year 2013 and that the price of jet fuel will average 85 cents per litre in the second quarter of 2013 and 86 cents per litre for the full year 2013.
Copyright Photo: Dave Glendinning. Boeing 767-375 ER C-FCAE (msn 24083) (70 Years – TCA 1937) taxies at London (Heathrow).
United Airlines (Chicago) yesterday (April 26) launched daily nonstop service from San Francisco to Paris (CDG).
Flight UA 990 departs San Francisco daily at 2:45 p.m. (1445) and arrives at Paris Charles de Gaulle Airport at 10:45 a.m. (1045) the next day. For the return, flight UA 991 departs Paris at 10:05 a.m. (1005) and arrives in San Francisco at 1 p.m. (1300) the same day. (All times are local.)
United operates this new service with Boeing 767-300 aircraft, which offer 30 flat-bed seats in United BusinessFirst, 49 seats in United Economy Plus and 135 seats in United Economy. The BusinessFirst cabin includes 15.4-inch touchscreen monitors for personal on-demand entertainment, electrical and USB outlets, iPod jacks and five-course meals with fine wines. Seats in Economy Plus offer customers more legroom to stretch out and relax. Each seat in United Economy features a 9-inch touchscreen with personal on-demand entertainment, and all rows include access to electrical outlets.
San Francisco is United’s largest West Coast hub. With approximately 9,000 employees in the Bay Area, United offers nearly 300 flights a day from San Francisco International Airport, more than any other airline, including nearly 30 daily nonstop flights to more than 15 international destinations.
United also operates an extensive maintenance center at San Francisco International Airport, where the airline’s technicians are completing a multi-year project to upgrade the airline’s cabins with new interiors, flat-bed seats and personal on-demand entertainment in United Global First and United BusinessFirst, and new entertainment systems for customers in United Economy. United’s San Francisco-based technicians are also outfitting the airline’s fleet with satellite Wi-Fi.
Copyright Photo: Mark Durbin. Boeing 767-322 ER N668UA (msn 30024) with Blended Winglets is tugged at the San Francisco hub.