Qatar Airways (Doha) has officially launched the start of its three year partnership with FC Barcelona at an event held at Camp Nou.
The airline’s partnership with FCB took effect from July 1 this year.
In attendance were leading representatives of both organizations, the CEO of Qatar Airways, Akbar Al-Baker, the President of FC Barcelona, Sandro Rosell and Vice President of FC Barcelona Economic and Strategy Area, Javier Faus.
Since its beginnings, FC Barcelona has been characterized by being not just a football organization, but also a powerful force for globalization, solidarity, integration and social cohesion. Qatar Airways fully identifies with these values, which is why this partnership between both organizations is much more than just a simple economic alliance. Furthermore, Qatar Airways’ partnership with FC Barcelona will help to position the airline in the world.
Qatar Airways will work with FC Barcelona to create joint initiatives and will especially focus on connecting with the club’s fans and also with underprivileged children to spread the love of the game to all corners of the globe.
A new FC Barcelona logojet is on the horizon.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 777-FDZ A7-BFD (msn 41427) of the cargo division of Qatar Airways taxies at Amsterdam.
Emirates (Dubai) has announced the launch of nonstop passenger services to Taipei, its 16th destination in the Far East.
The service will commence on February 10, 2014, initially with six nonstop flights per week to Taipei’s Taoyuan International Airport.
The route will be operated by a three class Boeing 777-300 ER aircraft equipped with eight luxurious private suites in First Class, 42 lie-flat seats in Business Class, and generous space for 304 passengers in Economy Class, along with gourmet cuisine in all classes.
Emirates now operates services to 134 destinations in 76 countries from Dubai. Earlier this year Emirates launched services to Warsaw and Algiers, followed by Haneda, Japan in June.
Emirates has announced plans to launch services to Stockholm starting September 4, to Clark International Airport in the Philippines and the trans-Atlantic Milan-New York (JFK) route on October 1; Conakry on October 27, Sialkot on November 5 and Kiev on January 16, 2014.
Taipei Flight Schedule – from February 10, 2014
|Day||Flight Number||Departure Airport||Departure Time||Arrival Airport||Arrival Time|
|Monday, Tuesday, Thursday||EK 366 EK 367||DXB TPE||0425 2315||TPE DXB||1615 0510 +1|
|Wednesday||EK 366 EK 367||DXB TPE||0225 2315||TPE DXB||1430 0510 +1|
|Saturday||EK 366 EK 367||DXB TPE||0020 2315||TPE DXB||1205 0510 +1|
|Sunday||EK 366 EK 367||DXB TPE||0340 2315||TPE DXB||1525 0510 +1|
LATAM Airlines Group (LAN Airlines and TAM Linhas Aereas) (Santago and Sao Paulo) reported it lost $330 million in the second quarter. The group was created last year with the merger of the two airlines. The group is struggling in Brazil with TAM due to a weakening Brazilian economy. TAM is cutting costs and reducing flights.
Read the full report: CLICK HERE
LATAM Airlines Group Fleet Plans (excerpt from the report):
Top Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Sporting new Sharklets, Airbus A320-214 PR-MYY (msn 5591) taxies at the Sao Paulo (Guarulhos) hub.
Bottom Copyright Photo: Alvaro Romero/ModoCharlie.com. Boeing 777-F6N N772LA (msn 37708) arrives at the Santiago hub.
AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc. (Dallas/Fort Worth), and US Airways Group, Inc. (US Airways) (Phoenix) have announced that they filed a motion to set a trial date and a supporting brief in the United States District Court for the District Of Columbia in connection with the lawsuit filed by the U.S. Department of Justice (DOJ) regarding the merger of the two airlines. In the motion, American Airlines and US Airways have requested a November 12, 2013 trial date.
In their filing, the Companies explain that their proposed trial date is very reasonable by recent historical standards. The DOJ request for 180 days, especially with one of the parties in bankruptcy, however, would be unprecedented and unreasonable in the circumstances. Based on the DOJ merger cases litigated to a decision since 2001, the average time from the DOJ’s complaint to trial is 70 days.
Top Copyright Photo: Ole Simon/AirlinersGallery.com. American Airlines’ Boeing 777-223 ER N781AN (msn 29586) approaches Madrid for landing.
Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-132 N814AW (msn 1281) lands at Long Beach near Los Angeles.
JetBlue Airways (New York) and British Airways (London) have announced an interline agreement to connect the carriers’ networks at New York’s John F. Kennedy International Airport (JFK), Boston Logan International Airport (BOS), Orlando International Airport (MCO) and Washington Dulles International Airport (IAD), creating new possibilities for travelers.
This marks the first partnership between JetBlue and British Airways, and the 25th airline agreement for JetBlue. The carriers initially plan to interline on 18 daily trans-Atlantic British Airways flights, more than 50 U.S routes on the JetBlue network and more than 100 British Airways routes beyond London. British Airways’ intercontinental routes that are part of the interline agreement include Boston-London Heathrow (LHR), New York/JFK-London City Airport (LCY), New York/JFK- London Heathrow (LHR), New York/JFK-Paris Orly (ORY), Orlando-London Gatwick (LGW) and Washington/Dulles-London Heathrow (LHR). Tickets can be purchased through British Airways.
Customers will be able to enjoy access to a variety of British Airways destinations beyond London, including Europe, Africa, the Middle East and India, as well as non-stop access to Paris Orly Airport from New York. Meanwhile, British Airways customers can now book onward tickets to new U.S. destinations such as Burlington, Vermont (BTV); Martha’s Vineyard, Massachusetts (MVY); Nantucket, Massachusetts (ACK); and Portland, Maine (PWM).
At JFK Airport British Airways operates from Terminal 7. JetBlue operates from nearby Terminal 5, a quick ride away on the airport’s free AirTrain service.
At Boston Airport, where JetBlue is the largest carrier and offers nonstop service to 49 cities, more than any other airline, British Airways operates from Terminal E, while JetBlue operates from nearby Terminal C.
At Orlando, where JetBlue operates numerous routes to the Caribbean and Latin America, British Airways operates from Terminal B and JetBlue from Terminal A.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-232 N645JB (msn 2900) in the Harlequin tail design lands at the focus city of Long Beach, California.
Bottom Copyright Photo: Richard Vandervord/AirlinersGallery.com. British Airways’ Boeing 777-336 ER G-STBA (msn 40542) arrives at the London (Heathrow) hub.
Austrian Airlines (Vienna) has introduced a new long-haul cabin product and issued this statement:
As of now all passengers on Austrian’s long-haul flights benefit from the advantages of its new cabin. These advantages include a new level of seating comfort in Economy Class, an advanced board entertainment system offering non-stop entertainment, as well as innovative Business Class seats capable of being transformed into entirely flat beds. A total of 2,538 new seats were installed in the four Boeing 777 and six Boeing 767 airplanes belonging to Austrian’s long-haul fleet. An optimal array of seats ensures undisturbed flights. The Boeing 777’s Business Class provides four of five passengers sitting in a row with direct access to the aisle. This access is enjoyed, in fact, by every Business Class passenger in Austrian’s Boeing 767s. As before Austrian’s passengers are indulged by the prize-winning service and the first class DO and CO-catered fare. The menus provided in Business Class receive their final touches from flying chefs.
The reconfiguration of the cabins has considerably boosted customer satisfaction, which has risen substantial 31 percentage points – among passengers on long-haul flights – since the launch of the new cabin. This result places Austrian Airlines among the peak of the evaluations received by the airlines comprising the world-spanning Star Alliance.
Austrian CCO Karsten Benz states: “We are gratified by the enthusiasm shown by our customers. The significant rise in their satisfaction is proof that our investments of more than €90 million have paid off.”
Top Copyright Photos: Michael B. Ing/AirlinersGallery.com (all others by Austrian Airlines). Boeing 777-2Z9 ER OE-LPC (msn 29313) climbs away from Tokyo (Narita) bound for the Vienna hub.
TAAG Angola Airlines (TAAG Linhas Aereas) (Luanda) is supporting the upcoming “Angola 2013″ Roller Hockey World Cup event in Angola with a large “Angola 2013 – 41st Mundial e Hoquei Patins” message emblazoned across the fuselage of this Boeing 777-3M2 registered as D2-TEG (msn 40805).
The 2013 FIRS Men’s Roller Hockey World Cup will be the 41st edition of the FIRS Roller Hockey World Cup. It will be held in Luanda and Namibe Providence, Angola from September 20-28, 2013.
This will be the first Roller Hockey World Cup played in Africa.
Copyright Photo: Pedro Batista/Flyingphotos. D2-TEG departs from Lisbon bound for Luanda with the additional markings.
Cathay Pacific Airways (Hong Kong) has announced that it will launch a new daily service from Newark Liberty International Airport to Hong Kong on March 1, 2014, subject to government approval. The new service will complement Cathay Pacific’s current four-times-daily service from John F. Kennedy International Airport (JFK) in New York. The launch of the Newark service will provide more convenience and greater flexibility for passengers traveling to and from the New York metropolitan area.
The Newark service will be operated by Boeing 777-300ER aircraft.
Newark will become Cathay Pacific’s fifth gateway in the United States, and seventh in North America. The airline currently serves Chicago, Los Angeles, New York (JFK), San Francisco, Toronto and Vancouver.
The flight schedule for Cathay Pacific’s Newark (EWR) service, effective March 1, 2014, will be as follows (all times local and subject to change):
|Flight no||From||To||Departure/Arrival||Days of operation|
Daylight saving time:
|Flight no||From||To||Departure/Arrival||Days of operation|
Cathay Pacific Airways flies daily to Hong Kong and beyond, including over 22 destinations in Mainland China, from Chicago, Los Angeles, New York (JFK), and San Francisco.
Copyright Photo: TMK Photography/AirlinersGallery.com. Boeing 777-367 ER B-KPB (msn 35299) climbs into the sky at Toronto (Pearson).
Kenya Airways‘ (Nairobi) CEO Titus Naikumi estimates the airline has already lost around $4 million due to the August 7 fire that gutted the international arrival building at Nairobi’s Airport. The airline is suffering long delays and cancellations due to the damage. The airport has erected tents as a makeshift terminal according to this report by Reuters. Kenya Airways is currently operating at around 90 percent of its normal capacity.
Read the full report: CLICK HERE
Copyright Photo: Antony J. Best/AirlinersGallery.com. Boeing 777-2U8 ER 5Y-KQS (msn 33683) prepares to depart from London (Heathrow) bound for Nairobi.
Air Canada (Montreal) today reported adjusted net income of $115 million or $0.41 per diluted share in the second quarter of 2013 compared to an adjusted net loss of $7 million or $0.02 per diluted share in the second quarter of 2012. Second quarter EBITDAR amounted to $385 million compared to EBITDAR of $312 million in the second quarter of 2012, an increase of $73 million or 23 per cent. On a GAAP basis, Air Canada’s net loss was $23 million or $0.09 per diluted share compared to a net loss of $161 million or $0.59 per diluted share in the same quarter of 2012.
“Air Canada delivered its best second quarter financial performance in the Corporation’s history, with records reported in all three measures of operating income, adjusted net income and EBITDAR,” said Calin Rovinescu, President and Chief Executive Officer. “These results are a clear indication that we are gaining momentum in our transformation towards sustainable profitability at Air Canada and underscore our Company-wide efforts to achieve cost containment and continue to improve on our revenue and yield performance.
“Our success in the quarter was not only financial – I am also especially pleased to report ongoing improvements in operational performance for the second consecutive quarter, with a 30 per cent improvement in On-Time Performance (OTP) for the quarter compared to the previous year. This is a reflection of the professionalism, collaboration and dedication of Air Canada’s 27,000 employees in taking care of our customers while operating a safe and efficient airline. Also, we were once again recognized by global travelers as the Best Airline in North America for the fourth consecutive year, a wonderful recognition of our efforts.
“Market response to the launch of our new leisure carrier, Air Canada rouge, on July 1st has been very positive and our plans are on track for growing the Air Canada rouge fleet to serve more holiday destination markets where we can now compete on a more cost effective basis. In addition, in early July, we began operating the first of five new Boeing 777-300 ER aircraft, marking the first significant growth in the mainline wide-body fleet in ten years to support continued development of our international network and Toronto hub as our North American gateway. These aircraft also debut our new Premium Economy cabin, offering customers a high-value option for enhanced comfort and service on select international routes.
“Looking ahead, our focus remains on the execution of the Corporation’s business plan led by our four core priorities: cost transformation, international growth, customer engagement and culture change to transform Air Canada into a sustainably profitable company for its shareholders and employees,” concluded Mr. Rovinescu.
Second Quarter Income Statement Highlights
Second quarter 2013 system passenger revenues were $2,757 million, an increase of $86 million or 3 per cent over the second quarter of 2012, on a 1.6 per cent growth in traffic and a 1.5 per cent improvement in yield. Passenger revenue per available seat mile (RASM) increased 0.9 per cent from the second quarter of 2012 on the yield growth. Air Canada reported a passenger load factor of 83.0 per cent for the second quarter of 2013, 0.5 percentage points below the second quarter of 2012. In the premium class cabin, passenger revenues increased $19 million or 3.3 per cent on yield and traffic growth of 2.2 per cent and 1.1 per cent, respectively, over the second quarter of 2012.
Operating expenses decreased $42 million or 1 per cent from the second quarter of 2012. Operating expense increases in wages, salaries and benefits and capacity purchase costs were more than offset by operating expense decreases in aircraft fuel and depreciation, amortization and impairment expenses.
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, decreased 1.4 per cent compared to the second quarter of 2012. The 1.4 per cent reduction in adjusted CASM was in line with the adjusted CASM decrease of 0.5 per cent to 1.5 per cent projected in Air Canada’s news release dated June 10, 2013.
In the second quarter 2013, Air Canada recorded operating income of $174 million compared to operating income of $63 million in the same quarter in 2012, an improvement of $111 million.
At June 30, 2013, cash and short-term investments amounted to $2,107 million or 17 per cent of 12-month trailing revenues (June 30, 2012 – $2,323 million or 20 per cent of 12-month trailing revenues).
At June 30, 2013, adjusted net debt of $3,975 million decreased $162 million from December 31, 2012, mainly reflecting the impact of an increase in cash balances.
Free cash flow of $147 million decreased $86 million from the second quarter of 2012, largely reflecting the addition of one Boeing 777 aircraft, partly offset by an increase in cash flows from operating activities due to better operating results.
For the third quarter of 2013, Air Canada expects its system ASM capacity, as measured by available seat miles (ASMs), to increase in the range of 2.5 to 3.5 per cent when compared to the third quarter of 2012.
Air Canada continues to expect its 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 1.5 to 2.5 per cent from the full year 2012.
For the third quarter of 2013, Air Canada expects adjusted CASM to decrease 1.5 to 2.5 per cent when compared to the third quarter of 2012.
Taking into account Air Canada’s adjusted CASM result for the second quarter 2013, Air Canada now expects its full year 2013 adjusted CASM to decrease in the range of 1.0 to 2.0 per cent from the full year 2012 (as opposed to the decrease of 0.5 to 1.5 per cent projected in Air Canada news release dated June 10, 2013).
Air Canada continues to expect its full year 2014 system capacity to increase by 9.0 to 11.0 per cent when compared to the full year 2013. This projected increase in capacity, expected to be deployed primarily on international markets, is consistent with the fleet plan discussed in Air Canada’s Second Quarter 2013 MD&A and is due to the addition of five high-density Boeing 777-300 ER aircraft, the first having been delivered in June 2013 and the remainder scheduled for delivery between August 2013 and February 2014, the scheduled arrival in 2014 of the first six Boeing 787 aircraft, and the planned growth from Air Canada rouge.
Air Canada’s outlook assumes Canadian GDP growth of 1.25 to 1.75 per cent for 2013 and Canadian GDP growth of 2.0 to 3.0 per cent for 2014.
Air Canada also expects that the Canadian dollar will trade, on average, at C$1.04 per U.S. dollar for the third quarter of 2013 and C$1.03 per U.S. dollar for the full year 2013 and that the price of jet fuel will average 87 cents per litre for the third quarter of 2013 and the full year 2013.
Copyright Photo: Ole Simon/AirlinersGallery.com. Formerly painted in the special Vancouver 2010 livery, Boeing 777-333 ER C-FIVS (msn 35784) gracefully climbs away from Frankfurt.
American launches codeshare agreement with LAN Colombia, creditors and shareholders tentatively approve the merger with US Airways
American Airlines (Dallas/Fort Worth) has announced the launch of a new codeshare agreement with LAN Colombia (Bogota), adding new service to key destinations in Colombia and further strengthening American’s relationship with LATAM Airlines Group. Customers can begin booking travel on the codeshare flights for travel beginning August 8.
The new codeshare agreement will give American’s customers seamless connecting service within Colombia and provide LAN Colombia’s customers access to new destinations in the United States. The two airlines will codeshare on flights between the U.S. and Colombia and provide American’s customers access to four new destinations in Colombia – Barranquilla, Bucaramanga, Cartagena and Pereira, while giving LAN Colombia’s customers access to 12 new cities in the U.S. from Miami, including Chicago (O’Hare), Dallas/Fort Worth, Los Angeles and New York (JFK).
In addition, LAN Colombia plans to join the oneworld® alliance in the fourth quarter of this year. LAN Colombia operates more than 990 weekly flights to cities throughout Colombia as well as destinations in Brazil and the U.S. From its Bogota hub, LAN Colombia offers 125 daily flights, including service to 20 Colombian cities.
In addition to the codeshare agreement with LAN Colombia, later this year American will launch new service from Dallas/Fort Worth (DFW) to Bogota (BOG), demonstrating its mission to provide customers with expanded options through a growing network footprint in Latin America. American currently operates up to 35 weekly flights from its hub in Miami to Bogota (BOG), Cali (CLO) and Medellin (MDE).
In others news, AMR Corporation, the parent company of American Airlines, Inc., announced the preliminary voting results on the Company’s Plan of Reorganization, which indicate overwhelming acceptance of the Plan by those creditors and shareholders entitled to vote.
Of the eight creditor classes entitled to vote, at least 88 percent of the ballots received and tabulated in each class, representing more than 97 percent of the claims value voting in each class, were voted in favor of the Plan. Additionally, more than 99 percent of the shares tabulated for the class of AMR stockholders voted to accept the Plan.
The final voting results for the Plan will be certified and filed with the U.S. Bankruptcy Court for the Southern District of New York in advance of the confirmation hearing on August 15, 2013.
On June 7, 2013, the Court authorized the company to begin soliciting approval of the Plan from AMR’s creditors and stockholders. Voting on the Plan ended July 29, 2013 at 5 p.m. EDT.
The effective date of the Plan and American’s Chapter 11 emergence are expected to occur simultaneously with the closing of the merger with US Airways. The merger is expected to close in the third quarter of 2013.
Top Copyright Photo: Nick Dean/AirlinersGallery.com. Brand new Boeing 777-323 ER N725AN (msn 41666) was handed over to American Airlines on July 31, 2013.
Bottom Copyright Photo: Bernardo Andrade/AirlinersGallery.com. Former AIRES Colombia Boeing 737-73S EI-EEB (msn 29081) of LAN Colombia taxies past the camera at Sao Paulo (Guarulhos).
ANA (All Nippon AIrways) (Tokyo) and Boeing have announced ANA has ordered three additional 777-300 ER (extended range) airplanes. The order, valued at approximately $945 million at current list prices, will increase the total number of 777s in ANA’s fleet to 57 airplanes once delivered. ANA currently operates 26 Boeing 777-300s (see below).
In route news, ANA will increase the number of flights between Tokyo-Narita, and Yangon Airport in Myanmar, to seven flights per week, from three. As a result, there will be a daily service on this route from September 30, 2013. In addition, seat capacity for the route will be increased by replacing the Boeing 737-700 aircraft with the 767-300 ER aircraft.
ANA will also announce the name of a new Narita International Airport-based leisure carrier. The new subsidiary will replace the now failed joint venture with AirAsia, named AirAsia Japan. This unit will served leisure destinations such as Guam and Hawaii and will launch operations with two aircraft. The fleet will expand to five aircraft by March 2014 according to Reuters.
On the financial side, ANA Holdings reported a $57.3 million operating loss for the fiscal first quarter ending on June 30.
In addition, the flag carrier announced its new in-flight services and the new “Inspiration of JAPAN” tagline and issued this statement:
|From late August, 2013, ANA will begin flying aircraft adorned with the tagline ‘Inspiration of JAPAN’, ANA’s brand concept. Alongside of this tagline, ANA will enhance its in-flight services and introduce new services throughout this fiscal year, starting from September.Inspiration of Japan
‘Inspiration of JAPAN’, which is the products and services brand of ANA, will be re-stated as the company tagline and will be designed on all of ANA’s aircraft. This will represent many aspects of the Japanese culture and spirit, including skills in innovation and technology, Japanese courtesy and precision, and the spirit of customer service at the heart of ANA.In addition to the tagline, national flag of Japan will also be designed at the front of the aircraft in order to emphasize our proud of Japanese heritage to global passengers.THE CONNOISSEURS
The first in-flight service enhancement to be launched in September will be THE CONNOISSEURS project. THE CONNOISSEURS is an in-flight meal team composed of 10 renowned chefs, 5 beverage specialists and 9 of ANA’s own catering chefs, among the most talented of any of the world’s airlines. The team will produce a range of meals and drinks for our international and domestic flights. See ‘Notes to Editors’ section for more information on the chefs and menu.
New First and Business Class Bedding and Amenities
ANA will also provide a new amenity kit service in Business Class that will surely make passengers relax and enjoy our flights. Passengers will receive a pouch filled with L’OCCITANE products, originating from Provence in southern France.
As the first airline in Japan, and one of the few global airlines being recognized as the highest 5-Star airline by SKYTRAX, ANA will continue to further enhance the services we offer to our customers.
|New bedding for long-haul flights – Ultimate in cabin comfortANA presents a new selection of bedding, using the latest innovative technologies that are the pride of Nishikawa Sangyo Co., Ltd., a leading Japanese manufacturer of bedding products since its founding in 1566. Based on the theories of its Japan Research Laboratory of Sleep Science, we now offer items such as highly functional Nanofront® fibers from Teijin, and the finest organic materials from Tenerita. We hope you will enjoy your journey above the clouds.First Class
Quality of sleep is determined by multiple factors including posture, bedding texture, weight, heat retention, and breathability. Our ultra-light comforters are made from the highly functional Teijin fibers using the latest technologies from Nishikawa Sangyo. Moreover, its AiR® mattress features a unique structure that disperses body pressure, while its Angel Float® pillow offers a flexible fit even when lying face up or sideways.
Also enjoy our blankets made with the finest cashmere and Tenerita’s organic cotton that meets strict international standards, as well as the double-sided knitted loungewear with a truly soft texture.
Applicable flights: Routes departing from Japan bound for North America and Europe
Applicable class: First Class
In Business Class, bed pads are Nishikawa Sangyo’s Air Cyclone® customized for the ANA BUSINESS STAGGERED seats. Turning over during sleep is easy due to the unique three-layer structure and moderate resistance. These bed pads also offer excellent breathability and comfort. And because the reverse side is skid resistant, they can also be used as seat cushions. The comforters are Bodyline Quilts that fit your body. We’ve also introduced structural pillows from Nishikawa Sangyo for a perfect fit from your neck to the back of your head.
Applicable flights: Routes departing from Japan bound for North America and Europe (except Honolulu)
*New bed pads will be introduced on flights equipped with ANA BUSINESS STAGGERED seats only.
Applicable class: Business Class
Top Copyright Photo: Keith Burton/AirlinersGallery.com. Boeing 777-381 ER JA733A (msn 32648) arrives at London (Heathrow).
Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) issued its financial report for the first six months of 2013 including subsidiary Transavia Airlines (Amsterdam). The group reported an operating profit of $105 for the first half turning around a comparable loss in the first six months of 2012. The group expects to make an operating profit for the entire year.
Read the full report: CLICK HERE
Read the analysis by Bloomberg: CLICK HERE
Top Copyright Photo: Brian McDonough/AirlinersGallery.com. Airbus A380-861 F-HPJE (msn 052) climbs away from Washington (Dulles).
Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 777-306 ER PH-BVD (msn 35979) in the SkyTeam motif taxies to the runway at the Amsterdam hub.
Delta Air Lines (Atlanta) today reported financial results for the June 2013 quarter. Highlights from the quarter include:
- Delta’s net profit for the June 2013 quarter was $844 million, or $0.98 per diluted share, excluding special items1. This result is a record June quarter profit excluding special items and is a $258 million improvement year-over-year.
- Including $159 million in special items, Delta’s GAAP net income was $685 million, or $0.80 per diluted share.
- The company announced a balanced capital deployment plan, targeted at creating up to $5 billion of value for shareholders by 2017 through further debt reduction and the return of more than $1 billion to shareholders over the next three years by means of $200 million of annual dividends and a $500 million share repurchase program.
- June quarter results include $118 million of profit sharing expense in recognition of Delta employees’ contributions to the company’s financial performance.
- Delta generated $1.3 billion of operating cash flow and $730 million of free cash flow in the June 2013 quarter, and ended the period with adjusted net debt of $10.2 billion.
Delta’s operating revenue declined $25 million in the June 2013 quarter compared to the June 2012 quarter. Traffic increased 0.5 percent on a 0.8 percent increase in capacity.
- Passenger revenue increased 0.7 percent, or $63 million, compared to the prior year period. Passenger unit revenue (PRASM) was flat year over year with a 0.2 percent improvement in yield.
- Cargo revenue decreased 11.4 percent, or $30 million, on declining freight yields.
- Other revenue decreased 5.6 percent, or $58 million, as a result of the decision to discontinue a number of low margin-producing third-party maintenance contracts.
Comparisons of revenue-related statistics are as follows:
2Q13 versus 2Q12
|Passenger Revenue||2Q13 ($M)||Change
Cash from operations during the June 2013 quarter was $1.3 billion, driven by the company’s June quarter profit and the seasonal increase in advanced ticket sales, which was partially offset by $500 million of accelerated pension funding. The company generated $730 million of free cash flow.
Capital expenditures during the June 2013 quarter were $704 million, including $360 million for the acquisition of 49% of Virgin Atlantic and $238 million in fleet investments, including aircraft parts and modifications. During the quarter, Delta’s debt maturities and capital leases were $405 million.
Delta ended the quarter with adjusted net debt of $10.2 billion and the company has now achieved nearly $7 billion in net debt reduction since 2009. This debt reduction strategy produced a $43 million year-over-year reduction in interest expense in the June quarter. As of June 30, 2013, Delta had $5.7 billion in unrestricted liquidity, including $3.9 billion in cash and short-term investments and $1.8 billion in undrawn revolving credit facilities.
Total operating expense in the quarter decreased year-over-year by $805 million driven by the savings from Delta’s structural cost initiatives and lower mark-to-market adjustments on fuel hedges, partially offset by the impact of operational, service and employee investments.
Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was 2.5 percent higher in the June 2013 quarter on a year-over-year basis, driven by the impact of wage increases and operational and service investments. GAAP consolidated CASM decreased 9 percent, driven by lower fuel expense.
Fuel expense for the June quarter declined $710 million year-over-year, or $288 million excluding mark-to-market adjustments, as a result of lower fuel prices and prior year hedge losses. Delta’s average fuel price3 was $3.03 per gallon for the June quarter. For the June quarter, operations at the Trainer refinery produced a $51 million loss ($0.05 cents per gallon impact) driven by the elevated price of the Renewable Identification Numbers (RINs) required under the Environmental Protection Agency’s Renewable Fuel Standard.
Balanced Approach to Capital Deployment
In May, Delta announced a five year financial plan and a balanced capital deployment program aimed at creating up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years. The company’s financial plan focuses on free cash flow generation through a combination of expected earnings improvements and a disciplined approach to capital investment. Over the next five years, Delta plans to reinvest $2.0 – $2.5 billion annually, or approximately 50 percent of its operating cash flow, into improving the company’s fleet, facilities, products and technology.
The resulting free cash flow will be used to return cash to shareholders, further reduce the company’s debt, and opportunistically address longer-term pension funding needs, driving up to $5 billion of value to Delta’s shareholders. Specifically,
- The company expects to achieve an adjusted net debt level of $7 billion by 2017, a $5 billion reduction over 2012. By meeting the $7 billion target, Delta will have reduced its adjusted net debt by $10 billion since 2009, significantly decreasing the company’s balance sheet risk and accreting more than $750 million of interest expense savings for shareowners;
- Delta’s Board of Directors initiated a quarterly dividend and declared a $0.06 per share dividend for shareholders of record as of August 9, 2013. This dividend will be paid on September 10, 2013. In addition, the Board authorized a $500 million share repurchase program, to be completed no later than June 30, 2016. Together, these two programs are designed to return more than $1 billion of capital to shareholders over the next three years;
- The company also plans to make up to $1 billion of incremental contributions to the company’s defined benefit pension plans over the next five years. These contributions would be in addition to the $650 – $700 million annual contribution requirement.
Delta recorded special items totaling a $159 million charge in the June 2013 quarter, including:
- a $125 million charge for mark-to-market adjustments for fuel hedges settling in future periods; and
- a $34 million charge for facilities, fleet and other items, primarily associated with Delta’s domestic fleet restructuring.
Delta recorded special items totaling a $754 million charge in the June 2012 quarter, including:
- a $561 million charge for mark-to-market adjustments on fuel hedges settling in future periods;
- $171 million in severance and related costs associated with voluntary early out programs; and
- a $22 million charge for facilities, fleet and other items.
(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 $165 million and $244 million for the June 2013 and 2012 quarters, respectively. The amounts excluded were $350 million and $484 million for the six months ended June 30, 2013 and 2012, 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 June 2013 quarter average fuel price of $3.03 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 June 2013 quarter. On a GAAP basis, fuel price includes $125 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period. The net refinery loss for the quarter was $51 million, or 5 cents per gallon. See Note A for a reconciliation of average fuel price per gallon to the comparable GAAP metric.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-232 LR N702DN (msn 29741) “The Spirit of Atlanta” prepares to land at Tokyo (Narita).
Turkish Airlines (Istanbul) has converted five Boeing 777-300 ER orders into firm orders according.
The aircraft will be delivered in 2016 and 2017, according to a filing with the Istanbul stock exchange.
Today, Boeing issued this statement:
Boeing and Turkish Airlines have announced a order for five 777-300 ER(Extended Range) airplanes, valued at $1.6 billion at list prices. The Turkish flag-carrier has exercised options on five 777-300 ERs that were first announced in December 2012 as part of a previous firm order for 15 777-300 ERs. Turkish Airlines now has 20 777-300 ERs currently on order from Boeing.
Turkish Airlines’ fleet currently includes 12 777-300 ERs, the first of which Boeing delivered in October 2010. In that time, the 777-300 ER has played a significant role in Turkish Airlines’ incredible long-haul growth.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 777-3F2 ER TC-JJN (msn 40795) is pictured at Everett (Paine Field).
Philippine Airlines (Philippines) (Manila) was planning to drop all service to Toronto (Pearson) on September 18 per Airline Route. The flag carrier was serving YYZ via an extension of the Manila-Vancouver route three days a week.
Update: According to Airline Route, PAL appears to have reversed its decision and has re-opened reservations for Toronto flights after September 18.
Copyright Photo: John Adlard/AirlinersGallery.com. Boeing 777-36N ER RP-C7776 (msn 37712) prepares to land at Sydney.
Philippine Airlines (Philippines) (Manila) is returning to Europe after an absence of 15 years after the European Union lifted its ban against the carrier. PAL intends to fly again to London, Paris, Frankfurt, Amsterdam, Rome and Madrid.
The airline issued this statement:
Copyright Photo: Micheil Keegan/AirlinersGallery.com. Boeing 777-36N RP-C7777 (msn 37709) prepares to land in Sydney.
National Transportation Safety Board (NTSB) (Washington) has conducted its final press conference in San Francisco. The landing Asiana Airlines pilot reported a bright light source on his final approach (reflection of the sun on the water?). The pilot looked away and did not think it blinded him. The other pilot did not report any source of light. Here is the briefing from yesterday afternoon (July 11). The final accident report will probably take a year or longer before it is issued. If there are any recommendations, the NTSB will issue those recommendations sooner to the Federal Aviation Administration (FAA).
Meanwhile the remains of the Boeing 777 are slowly being removed.
Air China (Beijing) began its four weekly nonstop services between Beijing Capital International Airport (PEK) in Beijing, China and George Bush Intercontinental Airport in Houston, Texas yesterday (July 11).
The inaugural flight from Beijing, CA 995, arrived at 3:40 (1540) yesterday afternoon to a Texas-sized welcome which included a traditional water cannon salute. Houston Mayor Annise Parker was on hand to greet the delegation from Chinaled by Ms. Yinxiang Wang, Co-Chairwoman of Air China Limited; Chinese Consul General for Texas and seven U.S. southern states and Puerto Rico, Ms. Erwen Xu; and, former Houston Rockets star and now Houston’s Honorary Goodwill Ambassador, Yao Ming.
Copyright Photo: Ribbon Cutting Celebrates Air China’s New Nonstop Service Between Houston, Texas and Beijing, China. (PRNewsFoto/Houston Airport System).
With the launch of the nonstop service, Houston becomes Air China’s fifth gateway in North America, joining Los Angeles, New York, San Francisco and Vancouver. Air China will operate inside Terminal D at George Bush Intercontinental Airport, Houston’s gateway for all foreign carriers.
Houston and Beijing have enjoyed a strong relationship for several decades. China’s paramount leader, the late Deng Xiaoping, visited Houston during his historic trip to the United States in 1979.
Air China will operate the nonstop flights, CA 996, from Houston to Beijing on Mondays, Wednesdays, Fridays and Sundays, departing at 1:00 AM local time (0100) and arriving in Beijing at 4:50 AM (0450) local time, next day. The chart below shows the schedule of the new service.
|Flight Number||Code-Share Flt. No.||Route||Departure||Arrival||Schedule||Aircraft|
|CA 996||UA7602*||Houston-Beijing||01:00||04:50+1||Mon, Wed, Fri, Sun||B777-300ER|
|CA 995||UA7601*||Beijing-Houston||15:00||15:40||Tue, Thu, Sat, Sun||B777-300ER|
NOTES: All times are local. “+1″ stands for next-day arrival.
Top Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 777-39L ER B-2036 (msn 38676) arrives at the Frankfurt terminal.
* Codeshare flight.
Singapore Airlines (Singapore) has unveiled its next generation First, Business and Economy Class seats, together with the next generation KrisWorld, according to the airline “the world’s most advanced in-flight entertainment system”. The airline issued this statement:
Customers will soon be able to experience the next generation KrisWorld, the world’s most advanced in-flight entertainment system to date, on new Boeing 777-300 ERs entering Singapore Airlines’ fleet in the coming months.
The new KrisWorld, based on a Panasonic Avionics hardware platform, will initially be available on eight new Boeing 777-300 ERs that will begin to enter service from September 2013. It will also be introduced on new Airbus A350s scheduled for delivery in the coming years, in line with the terms of an agreement valued at nearly $400 million that was signed with Panasonic Avionics in 2012. Existing KrisWorld systems on other aircraft already in service may also be retrofitted with the new system.
Singapore Airlines agreed last year to be the launch customer for Panasonic Avionics’ next-generation eX3 system for the Airbus A350s, as well as the first to offer the eX3 experience on the Boeing 777-300ERs. The airline will also be the first to offer Panasonic’s Global Communications Suite on the A350s, with the capability to provide broadband Internet services to passenger devices and the seat-back, as well as mobile phone services.
The new KrisWorld features larger LCD screens and video touch-screen handsets across all classes. LCD screens will increase from 23 to 24 inches in First Class, 15.4 to 18 inches in Business Class and 10.6 to 11.1 inches in Economy Class. Economy Class customers will also be able to browse through the more than 1,000 on-demand entertainment options by swiping or scrolling through the touch-screen monitor.
Working with renowned design company Massive Interactive, Singapore Airlines has seamlessly integrated the functionality of the video touch-screen handset into the core design of a new, innovative KrisWorld user interface to ensure that navigating through menus and programmes is intuitive and user-friendly. Customers will be able to multi-task among the varied entertainment options available. For example, they may watch a movie, while at the same time use the handset to keep up to date with the latest news headlines or track the aircraft’s flight path. Alternatively, customers may use the handset as a touchscreen trackpad to navigate KrisWorld. New features such as “Quick Search”, where a flick of the handset pulls up a playlist of entertainment choices, are also being introduced.
Leveraging on technology, a number of thoughtful features are being incorporated into KrisWorld with customers’ convenience in mind. For example, the Notification Centre on the KrisWorld dashboard contains information relevant to the flight, reducing the number of onboard announcements, thereby allowing customers to watch movies uninterrupted.
Customers will also experience greater personalisation, with KrisWorld providing content recommendations based on passengers’ preferences. They may also rate movies and see how others have rated these.
Twenty-one aircraft have been equipped to date and the service will be rolled out to the rest of the Airline’s Airbus A380-800 and Boeing 777-300 ER aircraft by the end of next year. Inflight connectivity service on the 21 aircraft is provided by OnAir. For the new 777-300 ERs entering the fleet over the next two years, the service will be provided by Panasonic Avionics.
|IFE screen size||61 centimetres 24 inches||46 centimetres 18 inches||28 centimetres 11.1 inches|
|Touch-screen handset||Available across all three classes|
|Ports||HDMI, USB & eXPort||HDMI, USB & eXPort||USB & eXPort|
|In-seat power supply||Available across all three classes|
|Headphones||Bose Quiet Comfort QC15noise-cancellation headphones||Phitek Supra Auranoise-cancellation headphones||Standard headphones|
Entertainment – movies, TV, music, radio channels
|More than 230 movies, over 340 TV programmes, 22 hosted radio programmes and more than 790 CDs.|
|Games||In addition to more than 80 interactive games including high performance 3D games, popular touch-screen games are now available.|
|Applications||New to KrisWorld:
Copyright Photos: Singapore Airlines. The airline has launched its next generation First, Business and Economy Class seats, together with the next generation KrisWorld, the world’s most advanced in-flight entertainment system. They will be available on new Boeing 777-300 ERs over the next two years. Customers travelling on select flights between Singapore and London will be the first to experience the new products from September 2013.
Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-312 ER 9V-SWJ 9msn 34575) arrives back at the SIN hub.
Etihad Airways (Abu Dhabi) posted record profits for the second quarter and the first half of 2013. The airline issued this statement:
The national carrier of the United Arab Emirates achieved an eight per cent increase in Q2 2013 passenger revenues, generating $921 million (all amounts in US Dollars) (2012: $855 million), while passenger revenues for the first half of 2013 reached $1.8 billion (2012: $1.6 billion), up by 13 per cent.
Revenue generated by codeshare and equity alliance airline partners was $184 million in Q2 2013. This was 25 per cent above the $147 million turnover in the same period of 2012. Partnership revenue comprised 20 per cent of the airline’s total passenger revenue in both Q2 and the first half of 2013.
The President and Chief Executive Officer of Etihad Airways, James Hogan, said the company’s Q2 and half year results were achieved despite the continuation of unsteady economic and geopolitical factors, with air fare yields slightly lower for the quarter, compressed by strong competitive capacity growth and resultant price competition.
“Despite the tough global trading climate, we have still achieved record, double digit growth in both Q2 and the first half of 2013,” Mr Hogan said.
“This reflects not only the continuing popularity of our Abu Dhabi hub, but the growing maturity of our airline partnership strategy and the strength of our cargo operations, which continue to well exceed industry growth rates.”
Mr Hogan said a significant achievement in Q2 was the improved contribution of the Etihad Airways equity alliance partners, in particular Germany’s Airberlin, which has become the largest codeshare contributor. This reflects increased connectivity between the integrated networks of the two airlines.
Etihad Airways increased its codeshare partnerships during Q2, adding Serbia’s national carrier, Jat Airways (Belgrade), and announced new partnerships with Air Canada (Montreal), South African Airways (Johannesburg) and Belavia (Minsk) of Belarussia, all to take effect during Q3. With these inclusions, Etihad Airways will have 45 codeshare partners and a virtual global network of more than 350 destinations, the most comprehensive of any alliance or Middle Eastern airline.
In Q2, Etihad Airways’ Available Seat Kilometers (ASKs) – reflecting network seat capacity – rose by 13 per cent to 17.2 billion (2012: 15.2 billion). Revenue Passenger Kilometers (RPKs) – reflecting traffic – increased by 13 per cent to 13.3 billion in Q2 2013 (2012: 11.8 billion).
This growth was achieved through the delivery of two new Boeing 777-300 passenger aircraft – a three-class version seating 328 passengers and a two-class model seating 380 – and a corresponding increase in flights, including new services to Amsterdam, Sao Paulo and Belgrade.
Results for Q2 were further strengthened by the introduction late in March of daily flights to a fourth new destination, Washington, D.C.
Etihad Cargo continued to achieve the strongest growth in the company, with 112,963tons uplifted in Q2 2013 (2012: 89,470 tons) and 215,124 tons in the first half of 2013 (2012: 174,622 tons). This reflected a massive 26 per cent growth in Q2 and 23 per cent growth for the first half of 2013.
The growth in cargo volumes was underpinned by the delivery in Q2 of three new freighter aircraft – one Airbus A330-200F, one Boeing 777-200F and the company’s first Boeing 747-8F, which was wet leased from Atlas Air – taking the cargo fleet to nine. Cargo performance was further boosted by increased passenger services, providing more under-floor freight capacity.
During Q2 Etihad Airways announced that, subject to regulatory approvals, it would acquire 24 per cent of India’s Jet Airways, enlarging the Etihad Airways equity alliance and group network.
In addition, Etihad Airways signed an Initial Memorandum of Understanding with the Government of Serbia to discuss potentially investing in Jat Airways. Etihad Airways also secured Australian regulatory approval to increase its equity stake in Virgin Australia from 10 per cent to 19.9 per cent.
As well as its Virgin Australia stake, Etihad Airways holds a 29 per cent shareholding in Airberlin (Berlin), 40 per cent of Air Seychelles (Mahe) and three per cent of Aer Lingus (Dublin).
Copyright Photo: Duncan Kirk/AirlinersGallery. Newly-built Boeing 777-3FX ER A6-ETP (msn 41699) lands at Paine Field near Everett after a test flight. The new airliner was delivered on June 25, 2013.
The Air Line Pilots Association, Int’l, released the following statement regarding the crash landing of Asiana Airlines (Seoul) flight 214 in San Francisco on Saturday, July 6, 2013.
First and foremost, our thoughts are with those who were involved in the accident this past Saturday. From the crew to the passengers to the families and first responders, we hope they can gain some comfort during this difficult time.
ALPA is stunned by the amount of detailed operational data from on-board recorders released by the National Transportation Safety Board (NTSB) this soon into the investigation. The amount of data released publicly during the field portion of the accident investigation is unprecedented.
It is imperative that safety investigators refrain from prematurely releasing the information from on-board recording devices. We have seen in the past that publicizing this data before all of it can be collected and analyzed leads to erroneous conclusions that can actually interfere with the investigative process.
The release of individual data points from the flight data recorder and the cockpit voice recorder—without the context of the entire body of factual investigative data—represents a potential detriment to flight safety. It encourages wild speculation, as we have already seen in the media, about causes of the accident before all the facts are known, before investigators have the ability to determine why the events occurred, and in this case before the flight crew had even been interviewed.
This premature release of partial data is often taken out of context and creates the impression that the NTSB has already determined probable cause even before the investigation has started. Since each factor of flight, landing, airport environment, and crew is part of safe air travel, we need to ensure that reckless release of information is not sensationalized by the media for the purpose of a few headlines.
ALPA has long supported an objective accident investigation process that is based on the fundamental principle of obtaining all the facts to perform accurate analysis in the context of all factors that may have led to an accident. We stand ready to assist the NTSB or any state investigative agency in obtaining those facts and ensuring that an appropriate operational context is maintained.
ALPA urges the NTSB to make sure that the objective investigative process continues by gathering all the facts and relevant information before leading the public to believe that a cause has been determined.
Founded in 1931, ALPA is the world’s largest pilots union, representing more than 50,000 pilots at 33 airlines in the United States and Canada.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Here is another view of the ill-fated Boeing 777-28E ER HL7742 (msn 29171) arriving at Los Angeles before the accident at SFO.
Asiana Airlines‘ (Seoul) flight OZ 214 from Seoul (Incheon) to San Francisco with a reported 291 passengers and 16 crew members crashed landed short of runway 28L on landing at San Francisco at 1127 local time. The underside of the fuselage, possibly the main gear, impacted the rock seawall while landing leaving a trail of debris down the overrun area and on to the runway. The forward section of Boeing 777-28E ER HL7742 (msn 29171) was consumed by fire. The main fuselage separated from the tail section on impact. Most passengers and crew members were able to escape the burning aircraft from the main section.
The flight crew gave no indication of a problem before attempting its landing.
Two people have died in the crash. 181 people were initially transported to nine area hospitals from the triage area. 123 people are listed as uninjured. 34 people have been transported to the Trauma Center at the San Francisco General Hospital. Of these 34, five are listed now as “critical” and five are now listed as “serious”. One person is now listed as “unaccounted”. The remainder were later transported to area hospitals for medical attention and are expected to be released.
One eyewitness, watching the planes landing, reported to CNN that he saw the airliner land short of the runway with the landing gear hitting the seawall. A fire ball flared on the underside of the aircraft during the hard landing. The aircraft cartwheeled according to the eyewitness with the tail section and vertical stabilizers separating quickly. The right wing tip shows damage.
Another eyewitness who was a passenger in the rear section of the aircraft told CNN the tail section hit the ground very hard and at least two Flight Attendants “fell out” from rear into the gap that was created when the tail section separated.
An United Boeing 747-400 was very close to the final resting spot of the forward section and was preparing to depart.
Weather was reported to be clear and visibility at 10 miles at the time of the accident.
San Francisco International Airport is now reporting it has opened two runways.
HL7742 was delivered new to Asiana on March 7, 2006.
More news will be posted as it is confirmed.
Read the report from NBC: CLICK HERE
Local TV news coverage from PIX 11: CLICK HERE
Copyright Photo: Michael B. Ing/AirlinersGallery.com. HL7742 is pictured on final approach previously at Los Angeles.
Videos from San Francisco:
Report from CNN:
- 2013: positive industry EBIT in the second semester, resulting from an improvement in industrial management
- 2014: break-even operating margin
- 2015: balanced budget
- 2016: balance sheet profit
- Increase the convertible shareholders loan by 55 million euros within December 2013
- Increase the financial resources by 300 million euros in December 2013
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alitalia will concentrate on adding new, higher-yield long-range international routes. Boeing 777-243 ER I-DISA (msn 32855) climbs away from Tokyo (Narita).
Bottom Copyright Photo: Richard Vandervord/AirlinersGallery.com. Air One will be rebranded, possibly as “Smart Carrier”. Air One’s Airbus A320-215 EI-DSK (msn 3328) taxies at the Milan (Malpensa) base in the 1995 color scheme.
Garuda Indonesia (Jakarta) on June 27, 2013 took delivery of its first Boeing 777-3U3 ER (PK-GIA, msn 40074). Boeing and Garuda Indonesia are celebrating the delivery in Jakarta today. Boeing issued this statement:
Boeing and Garuda Indonesia celebrated the arrival of the airline’s first 777-300 ER (Extended Range) in Jakarta Tuesday (July 2).
The long-haul, twin-aisle airplane is the first of 10 777-300 ERs delivered to the airline and is a key component of the Garuda Indonesia’s Quantum Leap fleet revitalization program.
The airline configured its new 777-300 ERs with eight first-class suites, 38 business-class seats and 268 seats in economy class. The aircraft is also equipped with in-flight internet connectivity.
The airplane can fly up to 7,825 nautical miles (14,490 km). The 777-300 ERs are equipped with GE90-115B engines, the world’s most powerful commercial jet engine.
Copyright Image and Photo: Garuda Indonesia.
American Airlines (Dallas/Fort Worth) and the Walt Disney Studios announced a strategic collaboration on the upcoming “Disney’s Planes” movie, including a cameo appearance by Tripp – inspired in part by American’s Boeing 777-300 ER, the newest addition to American’s fleet.
Video: CLICK HERE
Tripp dons the airline’s new look, complete with the company’s newly developed flight symbol and stripes on his tail for a special cameo appearance in the film.
“Disney is a global family brand and working with them gives us a fun opportunity to connect with families who know and love the iconic American Airlines brand,” said Rob Friedman, American’s Vice President – Marketing. “Through this collaboration, we have a lot of great things planned for this summer, including exciting trip promotions and in-airport activities, so I encourage everyone to stay tuned.”
To kick off the excitement, American and Disney surprised customers traveling throughLos Angeles International Airport (LAX) with gate celebrations and giveaways, including special guest appearances by the film’s director Klay Hall and actor Carlos Alazraqui, who provides the voice of passionate racer El Chupacabra (El Chu) in the film.
In addition, American and Disney today premiered a special version of the “Disney’s Planes” trailer for LAX customers, as well as American’s new custom animated commercial directed by Hall, and developed in conjunction with McCann Worldgroup. In the spot, characters from the movie, including Dusty, El Chu and Tripp, highlight American’s fleet modernization efforts with a comedic flare. American also held the inflight debut of the trailer and commercial spot onboard Flight #2442 from LAX to Dallas/Fort Worth International Airport (DFW).
“Disney’s Planes” and Tripp soar into theaters nationwide beginning Aug. 9, 2013. Leading up to the film’s release, the companies plan to roll out an integrated marketing effort, including collaborated advertising, promotions and inflight entertainment. American will also feature an inflight version of the movie in October, one month earlier than other airlines, as part of American’s continuing effort to provide customers with the latest and most exclusive content.
“Disney’s Planes” is an action-packed 3D animated comedy adventure featuring Dusty (voice of Dane Cook), a plane with dreams of competing as a high-flying air racer. But Dusty‘s not exactly built for racing—and he happens to be afraid of heights. So he turns to a seasoned naval aviator who helpsDusty qualify to take on the defending champ of the race circuit. Dusty‘s courage is put to the ultimate test as he aims to reach heights he never dreamed possible, giving a spellbound world the inspiration to soar. “Disney’s Planes” takes off in theaters on Aug. 9, 2013.
American Airlines (Dallas/Fort Worth) has completed the successful rollout of its industry-leading Electronic Flight Bag program with the discontinuation of paper revisions to terminal charts, making it the first majorcommercial airline to fully utilize tablets in all cockpits during all phases of flight. In April, American completed testing on its Boeing 757 and 767 aircraft and has secured FAA approval to use the Apple iPad on all of its current fleet types – Boeing 777, 767, 757, 737 and MD-80.
An Electronic Flight Bag, which replaces more than 35 pounds of paper-based reference material and manuals that pilots often carried in their carry-on kitbag, offers numerous benefits for American and its pilots.
“Our Electronic Flight Bag program has a significant positive environmental and cost-savings impact,” said David Campbell, American’s Vice President – Safety and Operations Performance. “In fact, removing the kitbag from all of our planes saves a minimum of 400,000 gallons and $1.2 million of fuel annually based on current fuel prices. Additionally, each of the more than 8,000 iPads we have deployed to date replaces more than 3,000 pages of paper previously carried by every active pilot and instructor. Altogether, 24 million pages of paper documents have been eliminated.”
All American pilots now enjoy the benefits associated with replacing their heavy kitbags – one of the airline’s biggest sources of pilot injuries – with a 1.35-pound iPad. The digital format also requires less time to update each of the six or more paper manuals found in each pilot’s kitbag, as manual paper revisions take hours to complete every month, compared to the minutes it takes for electronic updates.
“Our focus on technological improvement throughout our operation has never been stronger as we continue to build the new American,” said Patrick O’Keeffe, American’s Vice President – Airline Operations Technology. “As the first major commercial airline to successfully complete the Electronic Flight Bag transition across its fleet, we are proud to count this among our other successful programs that provide the tools our people need to perform their duties safely and efficiently.”
As part of the Electronic Flight Bag program, American’s pilots use mobile software and data from Jeppesen, a unit of Boeing Digital Aviation. The FAA-approved Jeppesen Mobile Terminal Chart application is allowed for gate-to-gate use throughout all phases of flight and, with the exception of a few select documents, replaces paper operating manuals with up-to-date electronic information that is easier to access.
“We congratulate American Airlines on the success of its Electronic Flight Bag program,” said Jeppesen President Thomas Wede. “Working closely together on this program over several years, we take pride in American’s achievements as it continues to eliminate paper-based materials in the flight deck, reducing pilot workload and increasing operational efficiency in a competitive business environment.”
American and the Allied Pilots Association (APA) began working on the feasibility of using a tablet device as an Electronic Flight Bag in June 2010, and American was the first commercial airline to receive FAA approval to use a tablet during all phases of flight in December 2011 on its Boeing 777 fleet. American has worked closely with its pilots throughout all phases of development that led to the program’s full integration.
Beginning July 10, American Eagle Airlines pilots will have the option to use Apple iPads to access reference material and manuals, making American Eagle one of the first regional carriers to adopt Electronic Flight Bags.
Top Copyright Photo: Brian Peters/AirlinersGallery.com. Boeing 777-223 ER N782AN (msn 30003) arrives at the Dallas-Fort Worth International Airport (DFW) hub.
Boeing (Chicago) and and Korean Air (Seoul) today announced that the airline has agreed to purchase five 747-8 Intercontinental airplanes and six 777-300 ER (Extended Range) jetliners, valued at approximately $3.6 billion at current list prices. Boeing will work with Korean Air to finalize the order, at which time the order will be posted to Boeing’s Orders and Deliveries website.
Korean Air is the only airline in the world to order both the passenger and freighter variations of the 747-8. When today’s order is finalized, Korea’s flag carrier will have 10 747-8 Intercontinental airplanes on order. The airline has taken delivery of three of its seven 747-8 Freighters on order.
Korean Air currently operates a fleet of 90 Boeing passenger airplanes that consist of 737, 747 and 777 airplanes. The airline also operates an all-Boeing cargo fleet of 27 747-400, 747-8 and 777 Freighters. In February 2012, Korean Air became the first airline in the world to operate both the 747-8 and 777 Freighters.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Korean Air is already an operator of the Boeing 747-800F freighter. Korean Air Cargo Boeing 747-8HTF HL7609 (msn 37132) climbs briskly in the Southern California sky after departing from Los Angeles International Airport.
Bottom Copyright Photo: Royal S. King/AirlinersGallery.com. Boeing 777-3B5 ER HL7782 (msn 37643) lands at Paine Field near Everett.
Qatar Airways orders nine additional Boeing 777-300 ERs, increases the Chicago route to daily service
Qatar Airways (Doha) and Boeing today announced agreements for nine Boeing 777-300 ER (Extended Range) airplanes at the 2013Paris Air Show. The agreements include a firm order for two airplanes previously attributed to an unidentified customer on Boeing Commercial Airplanes Orders and Deliveries website, plus a commitment for an additional seven airplanes. The total value of the agreement is $2.8 billion at current list prices.
The Doha-based airline currently operates 35 Boeing passenger and cargo 777s of various types, including 22 777-300ERs, nine 777-200LR (Longer Range) airplanes and four 777 Freighters.
The two firm airplanes give Qatar Airways a backlog of nine Boeing 777s. When the additional seven become firm, the backlog will rise to 16.
Qatar Airways currently operates a modern fleet of 125 aircraft to 128 key business and leisure destinations across Europe, the Middle East, Africa, Asia Pacific and The Americas.
Qatar Airways took delivery of its first Boeing 777 in November 2007. In September 2011, the airline received a 777-200LR that became the 100th airplane to join its fleet.
“It is a great honor to have Qatar Airways operate the 777 as its long-haul flagship aircraft,” said Ray Conner, president and CEO, Boeing Commercial Airplanes. “The 777’s unrivaled economics and customer-preferred passenger experience make it a cornerstone of Qatar Airways’ success.”
The demand for the Boeing 777 led to an increased production rate of 8.3 per month — 100 airplanes per year — in February 2013. In the past three years, the 777 program has increased rate two times, first from five airplanes per month to seven in 2011, then to the current, all-time high rate of 8.3.
In other news, the flag carrier has announced that effective on June 15, Qatar Airways has stepped up frequency on the Chicago – Doha route to daily flights ahead of the peak summer travel season.
As of May 2013, 1,105 777s have been delivered and a total of 1,452 have been ordered by 68 customers around the globe.
Copyright Photo: Nick Dean/AirlinersGallery.com. The pictured Boeing 777-3DZ ER A7-BAW (msn 41741) was handed over to the flag carrier on January 29, 2013.
El Al Israel Airlines‘ (Tel Aviv) stockholders have approved a 47 percent acquisition by Fimi Fund, a local Israeli investment fund. The airline issued this statement:
According to agreement signed by El A and the Fimi Fund in April, the Fund will invest up to $75 million in El Al and become a controlling group in the airline along with Knafaim.
According to the draft of the transaction, Fimi will invest up to $50 million by July 2013, and can extend completion of the transaction by two 45-day periods.
Fimi Fund’s commitment to complete the transaction is subject to several conditions, among them approval by El Al stockholders, which was accomplished on June 6.
The completion of the transaction is conditional on approvals by regulatory authorities and a signed agreement between El Al and its people on a new collective agreement whose terms are acceptable to Fimi.
On the financial side, El Al reported its first quarter profit declined to $37.9 million, down from $40.5 millionin the same quarter a year ago.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-258 ER 4X-ECD (msn 33169) climbs away from the runway Los Angeles International Airport.
Emirates (Dubai) today (June 3) celebrated the start of its daily, nonstop service from Dubai to Tokyo International Airport (Haneda) with the launch of its inaugural flight. Haneda is the company’s third destination in Japan.
Emirates’ flight EK 312 departs Dubai at 0935, touching down at Haneda 0001 the following day. The return flight, EK 313, departs Haneda at 0130 and arrives at Dubai at 0705 the same day.
According to the airline, the Boeing 777-200 LR aircraft operating the route is equipped with eight luxurious private suites in First Class, 42 of its latest lie-flat seats in Business, and generous space for 216 passengers in Economy, along with gourmet cuisine in all cabins which has been tailored to Japanese passengers, served by Emirates’ multinational cabin crew.
The aircraft also features ice, Emirates’ award-winning inflight entertainment system which offers over 1,500 channels showing the latest Japanese blockbusters, subtitled Hollywood films and Japanese music and TV.
Emirates now operates services to 134 destinations in 77 countries from Dubai, earlier this year Emirates launched services to Warsaw and Algiers. In addition to Haneda, Emirates has announced plans to launch services to Stockholm starting 4 September, Clark International Airport (Philippines) beginning on 1 October; the same day as it begins its transatlantic route between Milan and New York.
Copyright Photo: Paul Denton/AirlinersGallery.com. Boeing 777-21H LR A6-EWD (msn 35577) touches down at Geneva.
On May 29 Air France and KLM Royal Dutch Airlines will operate their first inflight connectivity flights with Wi-Fi on board. The new service will allow customers to remain connected with the world by being able to send text messages and e-mails and surf the Internet during their flight. On our specially designed inflight website we also offer a broad range of free and up to date services including live television news and sports channels, relevant airline and destination information.
In partnership with Panasonic Avionics, Air France and KLM will conduct a trial phase throughout the rest of 2013 on two Boeing 777-300s. During that time, customers can connect to the internet using their Wi-Fi enabled smartphones, laptops or tablets at a fixed rate and use their mobile phones for text messages or email, no matter what travel class they are in. The two Wi-Fi equipped aircraft will operate on several long-haul destinations during the trial.
During the pilot phase we will offer hourly and full-flight fees: EUR 10.95 per hour or EUR 19.95 for the full flight, applicable for all classes. These fees are in line with industry average. Travellers can pay for their internet access by credit card. Mobile phone usage (for text and data) will be billed to the phone users according to their own roaming agreements. Access to the inflight website will be free of charge.
Wireless service — whether the on-board portal or satellite internet — will commence once the flight has reached 20,000 feet, shortly after take-off.
Copyright Photo: Nick Dean/AirlinersGallery.com. KLM’s Boeing 777-306 ER PH-BVD (msn 35979) in the SkyTeam livery powerfully climbs away from Paine Field near Everett.
AeroMexico (Mexico City) today (June 1) avoided a strike by its flight attendants. According to Reuters, the ASSA union, which represents approximately 1,300 light attendants, had threatened a strike at midnight if it did not get a 5 percent salary increase.
The airline offered a 4.7 percent increase and the union agreed to the proposal averting a strike.
Read the full report: CLICK HERE
In other news, the airline is planning to introduce its first Boeing 787 on October 1, 2013 from Mexico City to Moterrey according to Airline Route.
Copyright Photo: Marcelo F. De Biasi/AirlinersGalley.com. Boeing 777-2Q8 ER N774AM (msn 28689) climbs away from Sao Paulo (Guarulhos) bound for the Mexico City hub.
Video: AeroMexico commercial:
American Airlines (Dallas/Fort Worth) and US Airways (Phoenix) have circled August 31 as a target date for its possible merger approval pending any anti-trust concerns of the government. In the meantime, according to this Wall Street Journal update, 29 employee teams are currently analyzing differences between the two carriers and ways to integrate the merger process. This research will lead to a sequence of events once the approval is granted. CEO Parker and CEO Horton co-lead the transition team. The new American livery still remains an resolved issue for the possible new American.
Read the full story: CLICK HERE
Copyright Photo: Brian Peters/AirlinersGallery.com. Boeing 777-323 ER N722AN (msn 31547) arrives at the DFW hub.
Video: What is it like to take delivery of a brand new Boeing 737-800:
Air India (Mumbai) is considering selling all eight of its Boeing 777-200 LRs (Longer Range) according to a report by Reuters. The airline is working with Boeing on the sale of the aircraft. The aircraft would be replaced with newer Boeing 787s.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-237 LR VT-ALD (msn 36303) climbs into the clear sky at Tokyo (Narita).
American Airlines (Dallas/Fort Worth) today (May 9) launched daily nonstop service between Dallas/Fort Worth International Airport (DFW) and Incheon International Airport (ICN) in Seoul, South Korea.
The new service is operated as part of American’s joint business agreement with fellow oneworld®alliance member Japan Airlines-JAL (Tokyo).
The new route is operated with a Boeing 777-200 ER aircraft (above), featuring 16 Flagship Suite seats in First Class that transform into fully lie-flat 6-foot-6-inch beds with drop-down armrests. The aircraft will also feature inflight entertainment at every seat, including Korean movies and pop music (K-Pop), Hollywood movies (with Korean audio or subtitles), and games.
Daily DFW-ICN Service Schedule
- Departs DFW at 10:20 a.m. CT
- Arrives at ICN at 2:50 p.m. KST the following day
- Departs ICN at 4:50 p.m. KST
- Arrives at DFW at 4:05 p.m. CT the following day
Copyright Photo: Brian Peters. Boeing 777-223 ER N775AN (msn 29594) taxies at the large DFW hub.
Austrian Airlines (Vienna) is planning to add another long-range Boeing 777-200 ER aircraft to expand its international operations. The airline issued this statement:
At its meeting yesterday, the Supervisory Board of Lufthansa approved the Austrian Airlines Group the lease of an additional Boeing 777-200 ER amounting to about EUR 33 million. Austrian Airlines Group will lease the aircraft for a period of about eight years from an internationally renowned leasing company. The aircraft will be transferred to Austrian Airlines Group in spring next year. Before it is put into operation, it will be subject to a maintenance check in Vienna and equipped with the new long-haul cabin including the new modern Economy seats, the new in-flight entertainment system and the new Business Class seats which can be converted into completely flat beds. The new Boeing 777 is scheduled to take off on its first flight in the summer of 2014.
“The expansion of the airline’s long-haul offering is an integral part of the restructuring program launched in 2012“, says Austrian Airlines Chief Executive Officer Jaan Albrecht. “The long-haul market has growth potential, particularly destinations in Asia and North America. In this way we will secure our long-term competitiveness at the Vienna flight hub.”
At present the long-haul fleet of Austrian Airlines Group consists of ten wide-bodied aircraft, of which four are Boeing 777-200 aircraft and six are Boeing 767-300s. On the basis of the new Boeing 777, the Austrian Airlines Group long-haul fleet will be expanded to eleven aircraft. The most recent expansion of the long-haul fleet took place in 2007 when one Boeing 777 with the registration OE-LPD was added. The Boeing 777 is the world’s largest twinjet and has a capacity of over 300 passengers.
The airline is also upgrading its cabins on its long-hail aircraft and issued this statement:
After passing its test flight and subsequently receiving approval from the authorities, the last Boeing 777 to feature the all-new cabin, aircraft with the registration OE-LPB has been put into revenue service. This means the conversion of the Austrian Boeing 777 fleet is now complete.
A total of 1,232 new seats have been fitted in the four Boeing 777 aircraft to have been converted, 192 in Business Class and 1,040 in Economy Class. The new cabin on the Boeing 777 offers space for a total of 308 passengers. Sophisticated seat distribution allows four out of every five Business Class passengers direct access to the aisle.
The national carrier has now converted its entire Boeing 777 fleet, and two of its Boeing 767 aircraft. Some 1.1 million customers fly long-haul with Austrian Airlines every year, on 5,500 flights.
On the financial side, the Austrian Airlines Group reported an operating loss of $73.5 million for the first quarter. The group issued this statement:
The Austrian Airlines Group continued to make progress in its restructuring program, as shown by its financial performance indicators, in spite of a difficult first quarter related to the winter season. In spite of massive cost burdens to the amount of EUR seven million related to the airline ticket tax and fuel price increases, the country’s largest domestic airline succeeded in improving its operating result by EUR 11 million, or 16.4 percent from the prior-year quarter. Accordingly, Austrian Airlines posted an operating loss of minus EUR 56 million in the first quarter of 2013 (Q1 2012: minus EUR 67 million).
“Austrian Airlines had a tough opponent in the likes of Jack Frost. Winter-related flight cancellations and expensive de-icing unnecessarily burdened our efforts to get back into the black”, says Chief Executive Officer Jaan Albrecht. “We are in a substantially better position than in the previous year, though our performance is slightly below our expectations. Nevertheless, I am optimistic that we will already achieve a turnaround this year”, he adds.
Total operating revenues declined slightly in the first quarter of 2013, down 1.3 percent to EUR 458 million (Q1 2012: EUR 464 million). Operating expenditures also fell by 3.2 percent, from EUR 531 million to EUR 514 million, an indication that the cost reduction measures have begun to take hold. On balance, the airline posted an operating loss of minus EUR 56 million in the first three months of the year. There were no one-off effects in the first quarter.
The number of passengers carried by the Austrian Airlines Group decreased by 2.7 percent to approximately 2.3 million in the period January to March 2013, which can be attributed to the streamlined fleet. As a consequence of optimized fine-tuning, capacity utilization (= passenger load factor) improved by 3.3 percentage points to 74 percent.
The number of people employed by the Austrian Airlines Group totaled 6,265 employees as at the quarterly balance sheet date of March 31, 2013 (December 31, 2012: 6,236 employees). In 2012/13, about 150 people were hired for positions as flight attendants, ground crew and pilots.
Austrian Airlines launched a comprehensive restructuring program at the beginning of 2012 designed to enhance the airline’s competitiveness and profitability. The focal point of the initiative was the successful transfer of flight operations to its subsidiary Tyrolean Airways effective July 1, 2012. This step served to bundle flight operations, which in turn enabled the elimination of redundancies in flight administration. A corresponding program is currently being implemented in 2013. The harmonization of the fleet for European flights was successfully concluded at the end of March. Eleven Boeing 737 aircraft were taken out of flight operations, whereas seven Airbus 320 aircraft were added to the fleet.
In October 2012, Austrian Airlines also launched a product campaign on its long-haul flights. All Boeing 767 and 777 aircrafts will be equipped with new, modern cabins, new Economy Class seats, new horizontal full-flat Business Class seats and a new in-flight entertainment system by September 2013. Five aircraft have already been remodeled. Investments related to the redesigning of the interiors of all the aircraft will amount to more than EUR 90 million. Moreover, as of May 17, 2013, Austrian Airlines has added the Chicago route to its destinations. As a result, the number of flight connections to North America has been increased to 26. The forecast for bookings to Chicago show capacity utilization of over 80 percent.
Copyright Photo: Stephen Tornblom. Boeing 777-2Z9 ER OE-LPC (msn 29313) lands at New York (JFK).
Qatar Airways (Doha) has announced it will start a new nonstop route from Doha to Philadelphia with Boeing 777s. Qatar is expanding its relationship with American Airlines (Dallas/Fort Worth) and PHL is a future AA hub city. Philadelphia will become the carrier’s fifth U.S. destination and service will commence on March 1, 2014. Charlotte and Miami are likely to see future Qatar service.
Additionally the flag carrier will add a new route to Addis Ababa, Ethiopia on September 18 followed by Clark International Airport (near Manila) starting on October 28.
Copyright Photo: Brian McDonough. A beautiful banking shot of Boeing 777-2DZ LR A7-BBC (msn 36015) at Washington (Dulles).
Boeing (Chicago) according to Reuters, is offering a new 777-8X model that would have a range of 9,500 nautical miles. The 777-8X is a proposed replacement for the current 777-200LR (Longer Range).
A 400 seat version, dubbed the 777-9X, is being offered to prospective airlines as a competitor to Airbus’ A350-1000.
Both models are being refined with input from the prospective airlines. The biggest customers will come from the Gulf region where range is important.
Read the full report: CLICK HERE
Air Canada (Montreal) and Etihad Airways (Abu Dhabi) have signed a Memorandum of Understanding (MoU) for a commercial cooperation agreement that will enhance travel services between the United Arab Emirates and Canada.
While the two carriers currently have interline agreements in place for passenger and cargo services, Etihad Airways and Air Canada intend to offer customers through-checked bags, reciprocal codeshare services and frequent flyer benefits.
The MoU provides for reciprocal codeshare services to Etihad’s Abu Dhabi hub and select points in North America served by Air Canada via its Toronto hub. The two parties have commenced discussions to finalize details with the objective of introducing codeshare services in the third quarter of 2013.
The agreement will also allow frequent flyer mileage accrual on codeshare flights by members of Etihad Guest and Aeroplan programs and reciprocal premium lounge access at Toronto and Abu Dhabi airports for eligible passengers of both airlines.
This announcement follows the recent decision by the Governments of the UAE and Canada to restore the previous visa regime which means Canadian nationals can once again obtain a free visa on arrival in the UAE.
The UAE is Canada’s largest merchandise export market in the Middle East region and more than 40,000 Canadians reside in the UAE. Furthermore approximately 150 Canadian companies are based in the UAE.
Subject to regulatory approval, Etihad Airways will place its EY code on Air Canada flights between Toronto and select North American points.
In return, Air Canada will place its AC code on Etihad Airways’ non-stop services between Toronto and Abu Dhabi, as well as Etihad Airways’ flights between London Heathrow and Abu Dhabi.
Etihad Airways and Air Canada will also work together to enhance cargo services into and out of Abu Dhabi and Toronto, and beyond on each other’s networks.
Top Copyright Photo: TMK Photography/AirlinersGallery.com. Embraer ERJ 190-100 nIGW C-FHJU (msn 19000044) arrives at the Toronto (Pearson) hub.
Bottom Copyright Photo: Keith Burton. Boeing 777-3FX ER A6-ETK (msn 39686) takes off from London (Heathrow).
FedEx Corporation (Memphis) has announced that its FedEx Express (Memphis) subsidiary has entered into a new express air transportation contract with the United States Postal Service. The current contract ends in September 2013, and the new contract will begin in October 2013.
Under this seven-year agreement, valued at approximately $10.5 billion, FedEx Express will provide airport-to-airport transportation of USPS Express Mail and Priority Mail within the United States.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 777-FS2 N884FD (msn 37137) gracefully climbs away from the Boeing factory at Paine Field near Everett, Washington.
Air Canada (Montreal) today provided preliminary results for the first quarter of 2013:
- Adjusted net loss of approximately $143 million versus an adjusted net loss of $162 million in the first quarter of 2012
- Net loss of approximately $260 million versus a net loss of $274 million in the first quarter of 2012
- Operating loss of approximately $106 million versus an operating loss of $91 million in the first quarter of 2012
- EBITDAR (earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent) of approximately $145 million versus $174 million in the first quarter of 2012
In the first quarter of 2013, Air Canada’s financial results were negatively impacted by an estimated $10 million due to flight cancellations caused by severe weather conditions and operational challenges at the airline’s major Canadian airport hubs, as well as aircraft deicing service delays at Toronto Pearson International Airport. A higher proportion of leisure passengers versus business passengers, in part due to a shift of the Easter holiday, and an unfavourable foreign currency impact on passenger revenues also contributed to the lower operating results year-over-year. In addition, Air Canada expects to record an impairment charge of $24 million related to Airbus A340-300 aircraft (none of which are operated by Air Canada) which is reflected in Air Canada’s preliminary operating loss and net loss results.
Air Canada estimates that its passenger revenue per available seat mile (“RASM”) in the first quarter of 2013, on a system-wide basis, increased by approximately 1.1 per cent as compared to the first quarter of 2012, due to passenger load factor improvements partly offset by lower yields. Air Canada also estimates that, in the first quarter of 2013, its 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 approximately 1.4 per cent compared to the first quarter of 2012, a more favourable outcome than the range of the 3 to 4 per cent increase previously projected in its February 7, 2013 news release. The result was better than forecasted due largely to Air Canada having recorded favourable accrual adjustments of $15 million which had not been previously projected, and to timing of certain maintenance events.
Adjusted net debt is estimated to be $3,987 million at March 31, 2013, a decrease of $246 million from March 31, 2012, with cash and short-term investments estimated to represent 17 per cent of 12-month trailing operating revenues at the end of the first quarter of 2013.
Air Canada’s system capacity, as measured by available seat miles (“ASMs”), in the first quarter of 2013 was 1.1 per cent lower than the first quarter of 2012, within the range of the 0 to 1.5 per cent decrease previously projected in its February 7, 2013 news release.
All figures reported above with respect to the first quarter of 2013 are preliminary, have not been reviewed by Air Canada’s auditors and are subject to change as Air Canada’s first quarter 2013 financial results are finalized. The outlook and preliminary estimates provided in this news release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of risks and uncertainties.
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. 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 (as opposed to the 0 to 1.0 per cent decrease projected in Air Canada’s February 7, 2013 news release).
Air Canada’s above-mentioned 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 full year 2013 and that the price of jet fuel will average 86 cents per litre for the full year 2013.
Copyright Photo: Ole Simon. Boeing 777-333 ER C-FITL (msn 35256) climbs away from Frankfurt.
AMR reports a net profit of $8 million in the 1Q (excluding reorganization costs) and a GAAP net loss of $341 million
AMR Corporation (Dallas/Fort Worth) today reported its financial results for the first quarter. The holding company of American Airlines (Dallas/Fort Worth) and American Eagle Airlines (Dallas/Fort Worth) issued this statement:
In the first quarter, AMR reported a net profit of $8 million, excluding reorganization and special items, a $256 million improvement compared to the prior-year period. AMR incurred a GAAP net loss of $341 million versus a GAAP net loss of $1.7 billion in the first quarter of 2012. First quarter results were negatively impacted by $349 million of reorganization and special items, which are detailed below.
AMR is on track to realize savings targeted in the restructuring process. To date, AMR has completed the majority of its financial restructuring, including reducing debt, renegotiating aircraft leases and facilities agreements, grounding older aircraft, rationalizing the regional fleet, renegotiating supplier relationships, and making a number of other important changes.
“The fundamental changes we have been able to achieve in streamlining our cost structure and making our operations more efficient are yielding substantial results,” said Bella Goren, AMR’s chief financial officer. “Building on the substantial progress that is evident in our results, we are continuing to implement initiatives that create greater value for our financial stakeholders, employees and customers.”
Year-over-year cost reductions in salary, benefit and non-operating expenses were driven by AMR’s restructuring efforts. Through the restructuring process, American reached six-year agreements with all workgroups and reduced management positions, making American’s management staffing the leanest among network carriers.
AMR also realized improvements in depreciation and amortization expense, offset by increased aircraft rent expense with the company taking delivery of a combined 36 new modern, fuel efficient Boeing 737-800 and 777-300ER aircraft over the past 12 months, all of which have been leased. American is in the midst of significant renewal and transformation of its fleet and expects to take delivery of 59 new mainline aircraft during 2013.
Throughout the remainder of the year, AMR expects to realize additional savings improvements as the company gains court approval to implement new terms negotiated with certain vendors and suppliers. It also plans to build on momentum from restructuring by implementing new scope clauses established in new labor agreements that will enable AMR to compete more effectively in certain markets by better matching aircraft size with demand as American begins operating larger regional jets and expands codeshare agreements.
For the first quarter of 2013, AMR reported consolidated revenue of $6.1 billion, approximately 1.0 percent higher compared to the prior-year period on 1.3 percent less capacity. First quarter consolidated and mainline passenger revenue per available seat mile (PRASM) increased 2.6 percent and 2.7 percent year-over-year, respectively. Consolidated revenue performance was driven by record passenger yield, or average fares paid, of 16.27 cents per mile, a 0.6 percent year-over-year improvement, and strong consolidated and mainline load factors, or percentage of seats filled, of 79.9 percent and 80.6 percent, respectively.
Domestic PRASM improved 2.7 percent in the first quarter versus the first quarter of 2012, with PRASM increases across all five of American’s hubs, with the Los Angeles and Chicago hubs showing particular strength. International PRASM increased 2.6 percent in the first quarter of 2013 over the prior-year period, driven by strong performance in the Atlantic entity. Absolute PRASM and yields in the Latin entity remain robust and further American’s belief that targeted growth in the region will be accretive to earnings.
Other revenues in the first quarter increased 1.2 percent compared to the prior period, driven primarily by an increase in AAdvantage® miles sold to partners and by growth in American Eagle’s ground-handling business performed for third parties.
“We achieved a quarterly yield that was the highest in company history for any quarter, and an all-time first quarter record in revenue,” said Virasb Vahidi, American’s chief commercial officer. “As we look to the second quarter, we remain focused on delivering for our customers through new products and services, the renewal of our fleet and greater access to more destinations across our growing global network.”
For the first quarter, AMR’s consolidated operating expenses decreased $80 million, or 1.3 percent, versus the same period in 2012. Excluding special items, AMR’s consolidated operating expenses decreased $142 million, or 2.3 percent, year-over-year. American’s mainline cost per available seat mile (unit cost) in the first quarter decreased 0.6 percent, including special items in both periods, and 1.7 percent versus the same period last year, excluding special items. Taking into account the impact of fuel hedging, AMR paid $3.26 per gallon for jet fuel in the first quarter of 2013 versus $3.24 per gallon in the first quarter of 2012, a 0.7 percent increase. As a result, the company paid $14 million more for fuel in the first quarter of 2013 than it would have paid at prevailing prices from the prior-year period.
Excluding fuel and special items, mainline and consolidated unit costs in the first quarter of 2013 decreased 4.1 percent and 3.2 percent year-over-year, respectively, primarily driven by the company’s restructuring efforts. Despite lower capacity, this was the second consecutive quarter of non-fuel unit cost reduction. In addition, AMR achieved an operating profit of $125 million and an operating margin of approximately 2.0 percent, an improvement of approximately $203 million and 3.3 points, respectively, over the prior-year period, excluding special items.
An unaudited summary of first quarter 2013 results, including reconciliations of non-GAAP to GAAP financial measures, is available in the tables at the back of this press release.
AMR ended the first quarter with approximately $5.1 billion in cash and short-term investments, including a restricted cash balance of $853 million, compared to a balance of approximately $5.6 billion in cash and short-term investments, including a restricted balance of approximately $771 million, at the end of the first quarter of 2012.
American ran a strong operation in the first quarter, achieving an on-time arrival rate of 80.8 percent. In the month of March, 81.8 percent of American’s mainline flights arrived on time, American’s best March performance since 2003. American’s solid operational results for the quarter also include posting a completion factor of 98.4 percent.
Other First Quarter Highlights
- In January, American Airlines became the first and only U.S. airline to introduce the Boeing 777-300ER (Extended Range) aircraft – the new flagship of American’s fleet. The company now has five 777-300ER aircraft in service, operating between New York Kennedy and both London Heathrow and Sao Paulo, and between Dallas/Fort Worth and London Heathrow.
- LATAM Airlines Group announced it will join oneworld®, and American filed applications with regulators for codeshare agreements with TAM and LAN Colombia. Pending approval, this will strengthen American’s existing service to Latin America by offering customers greater travel options and convenience.
- American and Finnair announced Finnair’s intent to join the transatlantic joint business American shares with British Airways and Iberia, providing our North American and European customers more choices and better connections across the Atlantic.
- American signed agreements with oneworld member-elect Qatar Airways, based in Doha, Qatar, and the newest oneworld member, Malaysia Airlines, to codeshare on each other’s flights, which will provide new growth opportunities for American in the Middle East and Southeast Asia, as well as for our new partners in the United States.
- American and Alaska Airlines announced an expanded codeshare agreement
- American filed an application with the U.S. Department of Transportation for the right to fly additional frequencies from its Los Angeles and Chicago hubs to Brazil, beginning in 2013 and 2014, respectively.
- American completed its private offering of two tranches of enhanced equipment trust certificates (EETC) in the amount of $664.4 million. This marked the first EETC financing in history for an airline in restructuring.
Pending Merger Transaction
On Feb. 14, AMR and US Airways Group, Inc. (Phoenix) announced that the boards of directors of both companies unanimously approved a definitive merger agreement under which the companies will combine to create one of the world’s largest global airlines, which will have an implied combined equity value of approximately $11 billion based on the price of US Airways stock as of Feb. 13, 2013. The merger will offer benefits to both airlines’ customers, communities, employees, investors and creditors. Among other things, the combined company is expected to:
- Benefit customers due to an expanded global network and investment in new aircraft, technology, products and services
- Enhance the oneworld alliance, offering a seamless global network
- Improve loyalty benefits for both airlines’ members by expanding opportunities to earn and redeem miles
- Provide a path to improved compensation and benefits with greater long-term opportunities for employees of both companies
- Enhance recoveries for financial stakeholders – AMR stakeholders to own 72 percent and US Airways shareholders to own 28 percent of the combined company’s diluted common stock
- Build upon the iconic, globally recognized American Airlines brand
- Be headquartered in Dallas/Fort Worth, with a significant operational presence in Phoenix
American’s proposed Plan of Reorganization provides the potential for full recovery for American’s creditors and a recovery of at least 3.5 percent of the aggregate diluted common stock of the combined airline for the company’s shareholders. It is unusual in Chapter 11 cases – and unprecedented in recent airline restructurings – for shareholders to receive meaningful recoveries.
The following merger milestones have been achieved to date:
- Jan. 31: Filed the required notification materials under the Hart-Scott-Rodino Act (HSR) with the U.S. Department of Justice and U.S. Federal Trade Commission
- Feb. 14: Announced the definitive merger agreement between AMR and US Airways
- Feb. 25: AMR and US Airways announced that Beverly Goulet, senior vice president and chief integration officer for American Airlines, and Scott Kirby, president of US Airways, will jointly lead a transition-planning team to design and oversee the new American integration
- March 21: AMR and US Airways announced the creation of the Integration Management Office (IMO) to support the transition team and the selection of McKinsey & Company to advise the IMO
- March 28: AMR received court approval to merge with US Airways
- April 15: AMR filed its Chapter 11 Plan of Reorganization, Disclosure Statement and Registration Statement; a hearing to consider approval of the Disclosure Statement is scheduled for June 4
The merger is conditioned on the approval by the Court, regulatory approvals, approval by US Airways shareholders, other customary closing conditions, and confirmation and consummation of the Plan of Reorganization in accordance with the provisions of the Bankruptcy Code. The combination is expected to be completed in the third quarter of 2013. Prior to closing of the transaction, the transition-planning team composed of leaders from both companies will develop an integration plan designed to assure a smooth and sustainable transition with a focus on maximizing the potential value of the merger.
Reorganization and Special Items
AMR’s first quarter 2013 results include the impact of $349 million in reorganization and special items.
- Of that amount, AMR recognized a $160 million loss in reorganization items resulting from certain of its direct and indirect U.S. subsidiaries’ voluntary petitions for reorganization under Chapter 11 on Nov. 29, 2011. These items primarily result from an adjustment to previously recorded estimated allowed claim amounts for certain special facility revenue bonds, as well as for professional fees.
- The company recognized interest charges of $116 million to recognize post-petition interest expense on unsecured obligations which is to be allowed pursuant to the company’s Plan of Reorganization filed on April 15.
- The company’s operating expenses for the first quarter also include special charges and merger-related expenses of $28 million, and a $45 million charge to benefits expense due to an increase in workers’ compensation claims in recent months, as well as adverse developments on older claims.
AMR estimates consolidated capacity in the second quarter of 2013 to be up approximately 1.0 percent versus the second quarter of 2012. For the full year 2013, consolidated capacity is estimated to increase approximately 1.5 percent versus the prior year.
American continues to make progress in implementing Main Cabin Extra, removing certain seats to provide customers with more leg room in the Main Cabin. To date, American has completed the retrofit of its Boeing 757 and 767 fleets and more than 90 percent of its 737 fleet. The retrofit of the MD-80 fleet commenced in January 2013, and to date, Main Cabin Extra has been added to approximately two-thirds of the MD-80 fleet with completion targeted for the second quarter of this year.
Copyright Photo: Brian Peters. Boeing 777-323 ER N718AN (msn 41665) climbs gracefully into the sky from the Dallas/Fort Worth main hub.
American Airlines (Dallas/Fort Worth) yesterday was a day that did not fit the image that the company would like to project as an airline that is being reborn after emerging from Chapter 11. American was forced to ground all of its flights yesterday (April 16) for several hours after a nationwide problem with its computer systems. Over 400 flights were cancelled. The company apologized to its customers and slowly returned to normal operations later in the day.
Read the full report from the New York Times: CLICK HERE
Copyright Photo: Brian McDonough. Boeing 777-223 ER N759AN (msn 32638) in the old 1968 livery with the special “Susan G. Komen for the Cure” markings arrives at Miami.
Emirates Airline (Dubai) has announced that it will begin operating a daily flight to Stockholm, Sweden from September 4, 2013.
The new route will be operated with Boeing 777-300 ER aircraft. The daily service will offer three cabin classes with eight seats in First Class, 42 seats in Business Class and 304 seats in Economy Class.
The new daily flight to Stockholm will depart Dubai as flight EK 157 at 0715 and arrive at Stockholm Arlanda Airport at 1200 the same day. The return flight, EK 158 will depart at 1355 and arrive at Dubai International Airport at 2225.
Emirates’ launch of Stockholm service will follow the launch of Tokyo Haneda service on June 3 . Closely following the launch of Stockholm in September, Emirates will launch a daily flight to Clark in the Philippines (near Manila) on October 1.
Copyright Photo: Nik French. Boeing 777-31H ER A6-EGO (msn 35598) with the special “1000th 777″ departs from Manchester.
Emirates Airline (Dubai) will launch a direct nonstop service between Milan (Malpensa) and New York (JFK), the airline’s only trans-Atlantic service, from October 1, 2013.
In addition to the existing passenger market between Milan and New York, Emirates has timed its flight schedule to ensure maximum connectivity for other key feeder markets. Customers looking to fly on the airline’s award-winning product will be able to seamlessly connect from points all over the U.S., including the West Coast, taking advantage of Emirates’ partnership with JetBlue, and across Europe, maximizing the airline’s frequent flyer partnership with easyJet.
“Operating a trans-Atlantic route has been on our agenda for some time. Having carefully monitored traffic flows we have identified strong demand for both a direct connection and, importantly, for the Emirates product. The route is currently underserved, particularly with a strong premium product offering this is where we see a clear opening for Emirates. We intend to capitalize on this opportunity, stimulating further demand and encouraging additional traffic flow in both directions,” said Tim Clark, President Emirates.
Operated by a Boeing 777-300 ER, the flight will be an extension of one of Emirates’ existing three daily, Dubai to Milan flights. The service will originate in Dubai with passengers then able to enjoy a stopover in Milan en-route to New York. On the return flight, passengers will have the option of stopping in Milan before continuing on to Dubai. This one-stop service has proved popular on other Emirates’ routes, giving passengers the opportunity to experience a new destination or to break their journey on longer trips.
Copyright Photo: Paul Denton. Boeing 777-31H ER A6-ENA (msn 41082) arrives back at the Dubai base.
JAL-Japan Airlines (Tokyo) on March 29 introduced this 30th Anniversary logojet to help celebrate the success of the Tokyo Disney Resort. Boeing 777-246 JA8985 (msn 27652) at Tokyo (Haneda) is the first JAL aircraft to wear the special Disney livery. The titles proclaim Year 30 is The Happiness Year. JA8985 is named the “JAL Happiness Express”.
JAL will add five more Disney aircraft including one additional 777-200 domestic and four 737-800 domestic aircraft.
According to Wipipedia, The resort opened on April 15, 1983, as a single theme park (Tokyo Disneyland), but developed into a resort with two theme parks, three Disney hotels, six non-Disney hotels, and a shopping complex. Tokyo Disneyland was the first Disney theme park opened outside of the United States.
Copyright Photo: Shige Sakaki.
Austrian Airlines to concentrate all Tyrolean Airways administration functions in Vienna, 100 jobs to be cut
Austrian Airlines (Vienna) is making further changes at its lower-cost Tyrolean Airways (Innsubruck) subsidiary. All Austrian Airlines aircraft, except one aircraft, are now operated by Tyrolean in the Austrian brand since July 1, 2012. Boeing 777-2Z9 OE-LPB was kept on the Austrian certificate to maintain Austrian as an operating airline.
All Tyrolean aircraft maintenance and the call center functions will remain in Innsbruck. However all administrative functions will now be centered in Vienna. All crew operations and traffic control will also be concentrated in Vienna. This will result in the loss of 100 positions.
Austrian expects to turn to profitability this year.
Read the full report (in German): CLICK HERE
Copyright Photo: Michael B. Ing. The only true Austrian Airlines-operated aircraft, this former Lauda Air Boeing 777-2Z9 ER OE-LPB (msn 28699), arrives at Bangkok.