Historic Photo of the Day – May 21, 2013
China Airlines Boeing 747SP-09 B-1862 (msn 21300) MIA (Bruce Drum). Image: 102868.
Copyright Photo: Bruce Drum.
China Airlines: 
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United Airlines unveils a new look in celebration of 25 years at Newark Terminal C
United Airlines (Chicago) today will celebrate the 25thanniversary of the airline’s Terminal C hub facility at Newark Liberty International Airport.
Travelers arriving and departing at Newark Liberty today will join United employees in an anniversary celebrationbetween 11 a.m. and 1 p.m. at the upper level United Airlines ticket counter, where customers will have opportunities to earn prizes, travel discounts and bonus MileagePlus miles, and see the airline’s new uniforms for the first time. The airline is also setting up a temporary exhibit during the two-hour period demonstrating how air travel has evolved since 1988.
Map of Terminal C at Newark Liberty International Airport (Port Authority of New York and New Jersey).
“We are pleased to celebrate United’s long history at our Newark hub - a premier global gateway and a powerful economic engine,” said Jeff Smisek, United’s chairman, president and chief executive officer. “We continue to make investments in our terminal facilities, our services and our people to ensure United’s Terminal C remains a great place for our customers and co-workers.”
“Thanks to the Port Authority’s strong partnership with United, Newark Liberty has become not only a world-class airport but also an important driver of economic growth, jobs and development for the entire region,” said Port AuthorityChairman David Samson. “The continued investment in Newark Liberty’s facilities will ensure that the airport, and Terminal C specifically, remains a modern, premier gateway for travelers.”
As part of the event, Smisek will outline the airline’s plans for further investments at Terminal C, including:
- a redesign of the airline’s check-in facilities
- installation in gate areas of flight-information displays that offer customers more detailed information about their flights
- construction of a widebody maintenance hangar that economic development officials anticipate will drive $52 million in economic activity in the region
- a new checked-baggage screening system.
In addition:
- Nearly two dozen United pilots, flight attendants, customer service agents and ramp workers will participate in an in-terminal fashion show that will debut the new uniforms that United employees worldwide will wear beginning onJune 25. This is the first time that all employees at the new United will wear the same uniforms.
- Buddy Valastro, co-owner of the Hoboken, N.J. bakery Carlo’s Bakery and star of the TLC program “Cake Boss,” will join the program to present a cake made specifically for the occasion.
- At 1:15 p.m., the first Boeing 787 Dreamliner to fly from any of the three New York-area airports since the aircraft re-entered service will depart for Houston.
- This afternoon, United will send photos of iconic locations throughout Manhattan via Twitter, Facebook and Instagram, meeting up with the company’s friends and followers in social media.
United in New York/Newark: The Hub for Wall Street
With more than 13,000 local employees, United is the New York area’s largest airline, offering more flights and more seats from the region to more destinations around the world than any other airline in history.
Since the first flight from Terminal C - the 6:15 a.m. departure of Continental flight 839 to Denver from gate 72 on the morning of May 22, 1988 - flights to and from the facility have enabled investment and economic development for theNew York metropolitan area, including Newark. In 1988, Continental offered service to 57 airports from Newark Airport.United today offers more than 400 flights each day from Newark Liberty to more than 150 destinations in North andSouth America, Europe, the Middle East and Asia, giving New York-area travelers more flights and more destinations via United and United Express than any other airline.
Newark Liberty’s location and rail links make it the most convenient hub airport for travelers originating in north and central New Jersey, parts of New York City including Wall Street, and southern New York State.
The airline also offers New York-area travelers more flat beds in premium cabins and more extra-legroom economy seats than any other airline. In addition, the airline boasts:
- the most saver-style award seats for frequent flyers among the largest U.S. global carriers, according to the 4thannual Switchfly Reward Seat Availability Survey published this month by IdeaWorksCompany.
- more aircraft offering satellite Wi-Fi and live television than any other U.S. airline.
Terminal C History
Copyright Photo: Dave Campbell/AirlinersGallery.com. The Boeing 737 and the pictured 727-200 were the mainstay aircraft in the PEOPLExpress fleet. Former Braniff Boeing 727-227 N553PE (msn 20774) poses for the camera at Chicago (O’Hare).
In 1985, People Express Airlines (PEOPLExpress) and the Port Authority agreed to remodel the existing Terminal C facility. After its 1987 mergers with Peoplexpress and New York Air (New York), which itself had a large Newark presence, Continental Airlines completed the terminal redevelopment project in conjunction with the Port Authority.
Copyright Photo: Fernandez Imaging/AirlinersGallery.com. The New York Air operation is pictured at nearby LaGuardia Airport.
In 2001, Continental Airlines (Houston) opened the Global Gateway, a $3.8 billion public-private partnership. The centerpiece of that project was the third concourse in Terminal C, “C-3,” designed to be bright and airy with gates constructed to enable international travelers to arrive at Terminal C - rather than solely at Terminal B - adding convenience and quicker connections.
Copyright Photo: Bruce Drum/AirlinersGallery.com. Continental’s McDonnell Douglas DC-10-10 N68046 (msn 47800) in the 1984 livery.
The Global Gateway also introduced the only rail station at a New York-area airport located in close proximity to the terminals, enabling Newark Liberty travelers direct AirTrain rail access to New York City’s Pennsylvania Station, New York State, New Jersey, Connecticut and Philadelphia.
Continental and the Port Authority also outfitted Terminal C with new roadways, parking garages, expanded electronic ticketing facilities, new terminal designs to facilitate more efficient security screening and an automated baggage handling system.
Top Copyright Photo: United Airlines. Crew members showcase the new uniforms.
United Airlines:
Continental Airlines:
Peoplexpress:
New York Air:
Route Map: How the Newark Hub has grown (click on the map for the full-size view):
Historic Photo of the Day – May 20, 2013
Alitalia (1st) (Linee Aeree Italiane) Boeing 747-243B I-DEMS (msn 22969) (Bulgari) MIA (Bruce Drum). Image: 102865.
Copyright Photo: Bruce Drum.
Alitalia (1st):
Frameable Color Prints and Posters: 
United Airlines puts its the Boeing 787 back into revenue service
United Airlines (Chicago) as planned welcomed back its Boeing 787 today with the re-launch of commercial service from the airline’s hub in Houston (Bush Intercontinental). United’s flight UA 1 departure from Houston Intercontinental at 11 a.m. to Chicago O’Hare marked the return of regular service using the world’s most advanced and efficient aircraft on domestic and international routes.
United will operate additional Dreamliner flights on routes from Houston to other domestic hubs this week, and the airline will launch international 787 service on the much-anticipated Denver-Tokyo route on June 10. This summer United also plans to inaugurate 787 service on existing routes including Houston-London, Los Angeles-Tokyo, Los Angeles-Shanghai and Houston-Lagos.
The airline expects to take delivery of two more Dreamliners from Boeing in the second half of 2013.
Copyright Photo: Michael B. Ing/AirlinersGallery.com.
United Airlines:
Southwest to start Houston Hobby-Washington Reagan National service on August 4
Southwest Airlines (Dallas) announced today that new service between Houston Hobby and Ronald Reagan Washington National Airport will begin on August 4, 2013. The airline initially will operate one daily roundtrip flight between the two cities.
The U.S. Department of Transportation (DOT) recently awarded slot exemptions for this service by selecting Southwest’s application over competing applications by other airlines to serve other cities from Reagan National Airport.
The new route completes a triad of nonstop service options between Houston and the metropolitan airports in Boston, New York, and Washington, DC.
Southwest has served Houston Hobby since June 18, 1971, and has more than 2,800 Houston-based employees and currently operates 153 daily departures from Hobby Airport. Earlier this year, the Houston City Council approved Southwest’s proposal to construct a new five-gate international facility at Hobby Airport. New near-international service on Southwest Airlines is scheduled to begin in 2015.
Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 737-8H4 WL N8610A (msn 36635) completes its final approach into nearby Baltimore/Washington.
Southwest Airlines:
Ryanair’s 2012 profit rises by 13% to a record $731.3 million
Ryanair (Dublin) has reported on its financial results for 2012. The company issued this statement:
Ryanair, Europe’s only ultra-low cost carrier (ULCC) today (May 20) announced (record) annual profits of €569 million ($731.3 million), up 13% on last year despite higher oil costs. Revenues rose 13% to €4.88 billion as traffic grew 5% to 79.3 million passengers. Unit costs rose 8% mainly due to an 18% (€292 million) increase in fuel. Excluding fuel unit costs rose by 3%, while average fares improved by 6%.
| Full Year End (IFRS) |
Mar 31, 2012 |
Mar 31, 2013 |
% Change |
| Passengers(m) | 75.8 | 79.3 | + 5% |
| Revenue(m) | €4,325 | €4,884 | +13% |
| Profit after Tax(m) Note 1 | €503 | €569 | +13% |
| Basic EPS(euro cent) | 34.10 | 39.45 | +16% |
“Announcing these profits Ryanair’s, Michael O’Leary, said:
The highlights of the past financial year include:-
· Profits grew by 13% to €569m.
· Traffic grew 5% to 79.3m (despite grounding up to 80 winter aircraft).
· 7 new bases – Chania (Greece), Eindhoven (Netherlands), Fez (Morocco), Krakow (Poland), Maastricht (Netherlands), Marrakech (Morocco) & Zadar (Croatia).
· 217 new routes (y/e total over 1,600 routes).
· 15 new aircraft delivered (y/e fleet 305).
· 2nd special div. of €492m and €68m share buyback completed.
· 175 new aircraft order, delivery 2014 to 2018 (sub. to June 18 EGM approval).
Delivering a 13% increase in profits and 5% traffic growth despite high oil prices during a European recession is testimony to the strength of Ryanair’s ultra-low cost model. Fuel costs rose by over €290m, and now represent 45% of total costs. Excluding fuel, unit costs were up 3% due to excessive and unjustified increases in Italian ATC, Eurocontrol and Spanish airport fees. Ancillary revenues outpaced traffic growth, rising 20% to €1,064m or 22% of total revenue.
Growth – New Routes and Bases
This summer Ryanair opened 7 new bases, and more than 200 new routes as we continue our strategy of growing Europe’s largest passenger airline. However with 9 (net) additional aircraft and longer sectors, traffic growth this summer will be very modest at approx. 2%. By grounding fewer aircraft next winter we expect to deliver slightly faster H2 monthly growth which should result in overall traffic growth for the full year rising by more than 2m to 81.5m passengers.
Our new route teams continue to handle more growth opportunities than our current fleet expansion allows. Significant opportunities are opening up in Germany, Scandinavia and central Europe in particular, where Air Berlin, SAS and LOT continue to restructure. We are in active discussions with the new owners of Stansted Airport and the new management at Dublin Airport and while no agreements have yet been reached, if a competitive cost base emerges, then we could restart growth at one or other airports as early as September 2013.
Ryanair continues to expand, making meaningful share gains in many of Europe’s largest markets. In addition to being the No. 1 passenger airline in Ireland, and Spain, we have in the last 12 months overtaken Alitalia and LOT to become Italy’s and Poland’s No. 1 airline, respectively. Ryanair believes that its unique low cost advantage will enable the airline to achieve a 20% share of the European short-haul market over the next 5 years, particularly given that many of Europe’s high fare incumbents are restructuring and cutting capacity.
Ryanair’s successful growth, allied to deep short-haul restructuring among many high fare competitors, gives us confidence that we can grow from 80m p.a. to over 100m passengers p.a. over the next 5 years. Our recent order for 175 firm B 737-800 aircraft represents an enormous opportunity for shareholders as Ryanair returns to higher rates (5% p.a.) of traffic growth. We are pleased to have reached acceptable pricing with Boeing, and the controlled delivery programme from Autumn 2014 to end of 2018 will provide the opportunity to expand Ryanair’s fleet to over 400 aircraft and our traffic to over 100m p.a. Ryanair is now uniquely positioned to offer many of Europe’s airports sustained traffic growth in return for low cost, efficient facilities. I am confident that in time this new order will enable Ryanair to extend its traffic leadership over Europe’s airlines, and generate further returns for our shareholders.
We were disappointed that the European Commission in February 2013 decided to prohibit Ryanair’s third offer for Aer Lingus. It is bizarre that the EU can wave through BA’s offer for British Midland in Phase 1 with few remedies, yet months later reject Ryanair’s offer for Aer Lingus which was accompanied by a revolutionary remedies package delivering two upfront buyers to open competing bases in Dublin and Cork airports. We have no doubt that this was yet another politically motivated decision by Europe’s competition authority and it is inexplicable in the context of its stated policy of promoting European airline consolidation.
In recent years high oil prices and competitor fuel surcharges have made Ryanair’s fares even more attractive to hard pressed European consumers. The combination of high oil prices, increasing competitor losses, together with a shortage of financing for weaker credits, will lead to continued EU consolidation and closures. Ryanair is 90% hedged for FY’14 at $980 per tonne (approx. $98 p.bl) and we have now extended our hedges into FY’15 with 25% of H1 hedged at $930 per tonne (approx. $93 p.bl). We hope to continue to make meaningful reductions in our oil costs into FY’15.
Ryanair’s balance sheet remains one of the strongest in the industry. Our aircraft which have been purchased at substantially discounted prices, represents a significant long term benefit for our shareholders. We have gross cash over €3.5bn and year-end net cash of €61m, despite having returned almost €500m to shareholders in November (€1.5bn over the past 5 years) via a second special dividend. We have also taken advantage of current low interest rates to secure almost 70% of our fleet financing all in at under 3% and we have completed our Capex hedging programme to the end of 2014 at Euro/Dollar exchange rate of 1.32.
We expect traffic in FY.14 to grow by 3% to 81.5m. Growth will be slower in H1 at approx. 2%, but rise to approx. 5% in H2 as we ground fewer winter aircraft (up to 60) compared to prior years. Unit costs will increase primarily due to rising oil prices, a 3% growth in sector length, and unjustified higher Eurocontrol and Spanish airport charges. Due to lower yields and higher fuel costs Q1 Net Profit will be lower than last year due to the timing of Easter (which boosted Q4 revenues) and its presence in the prior year Q1 comparable. With almost zero yield visibility into H2 and the EU wide recession, we expect that there will continue to be downward pressure on yields which will dampen full year profit growth. We expect modest yield and traffic growth for the full year to be partly offset by higher oil and Eurocontrol costs resulting in another year of profit growth in FY’14 which – subject to winter yield outturns – should increase to a range of between €570m to €600m”.
Copyright Photo: SM Fitzwilliams Collection. In November of 2006 Ryanair added these biting “bye bye Latehansa” markings to this Boeing 737-8AS EI-DLM (msn 33594) pictured landing at the Dublin base. The aircraft has since gone on to Nok Air as HS-DBM.
Ryanair:
WSJ: Update on the American Airlines-US Airways merger
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:
American Airlines:
US Airways:
Newsworthy Photo of the Day – May 17, 2013
Travel Service Airlines (Czech Republic) Boeing 737-8Z9 WL OK-TVX (msn 33833) (Prague loves you – Prague Airport) AMS (Ton Jochems). Image: 912156.
Copyright Photo: Ton Jochems/AirlinersGallery.com.
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Historic Photo of the Day – May 17, 2013
VIASA Venezuela Boeing 747-273C N749WA (msn 20653) MIA (Bruce Drum). Image: 102779.
Copyright Photo: Bruce Drum.
VIASA:
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Alaska Air Cargo delivers the season’s first Copper River Salmon to Seattle-Tacoma
Alaska Air Cargo (Alaska Airlines) (Seattle/Tacoma) today (May 17) delivered the season’s first shipment of Copper River salmon to Seattle-Tacoma International Airport. According to the airline, “the arrival of the coveted Copper River salmon marks the start of the summer salmon season and is anticipated by seafood lovers throughout the Pacific Northwest and beyond.”
The Alaska Airlines plane arrived early this morning with Copper River king and sockeye salmon from three seafood processors: Ocean Beauty Seafoods, Trident Seafoods and Copper River Seafoods. At least four more Alaska Airlines flights today will transport salmon from Cordova, Alaska, to Anchorage, Alaska, Seattle and across the United States.
“We’re proud to be the first to bring wild and sustainable Copper River salmon to seafood lovers across the country, in many cases within 24 hours after the fish is caught,” said Betsy Bacon, managing director of Alaska Air Cargo. “With so much demand for sustainable wild Alaska seafood, airline crews in South-Central and Southeast Alaska will kick into high gear to ship more than 2 million pounds of salmon across our 95-city network.”
Copper Chef Cook-off
Following the arrival of the first fish, three top Seattle chefs will compete to create the best salmon recipe in Alaska Air Cargo’s annual “Copper Chef Cook-off.” Pat Donahue, executive chef of Anthony’s Restaurants and the 2010, 2011 and 2012 Copper Chef winner, will compete against executive chefs John Howie of Seastar Restaurant and Raw Bar, and Chris Bryant of Wildfin American Grill. Also competing against the three chefs in the cook-off will be Master Sgt. Robert Shulman, a 31-year U.S. Air Force Reserve chef representing the 446th Airlift Wing (AW) out of Joint Base Lewis-McChord, located in Tacoma, Wash.
The chefs will have 30 minutes to prepare and serve the first catch of the season to a panel of judges, including Jay Buhner, Seattle Mariners Hall of Famer; Mike Fourtner, deckhand on the F/V Time Bandit, as featured on Discovery Channel’s “Deadliest Catch;” Chief Master Sgt. Tony Mack, 446th AW command chief from JBLM; and Jeff Butler, Alaska Airlines’ vice president of customer service-airports and cargo.
In a special tribute to the military, 10 citizen airmen from the 446th AW, joined in the morning festivities to cheer on the four chefs and sample the season’s first Copper River salmon. Among the other onlookers awaiting the freighter’s arrival were five Alaska Airlines Mileage Plan MVP Gold members invited to sample the season’s first Copper River salmon. These frequent fliers donated 500,000 Alaska Airlines Mileage Plan miles to Fisher House Foundation’s Hero Miles program to attend the event. Hero Miles turns donated frequent-flier miles into free airfare for wounded, injured and ill service members and/or their families who are undergoing treatment at a military or VA medical center and for other authorized events. Through Alaska Airlines’ partnership with Fisher House, the nonprofit that administers the program, nearly 6 million miles were donated last year to assist U.S. servicemembers injured and wounded in service to their country.
“The Copper Chef Cook-off helps to showcase the proud relationship the Air Force Reserves has with Alaska Airlines and hundreds of other employers and industry leaders here in Washington State,” said Chief Master Sgt. Tony Mack, 446th Airlift Wing command chief from Joint Base Lewis-McChord. “Chef is only one of hundreds of vocations in the Air Force Reserve, and allowing one of our finest to compete is a testament to the relationships we have within the community.”
Alaska Airlines and its sister carrier Horizon Air employ dozens of reservists who serve as pilots, aircraft maintenance technicians as well as other air and ground crew. An estimated 10 percent of current Alaska and Horizon employees either still serve in the military or have veteran status.
The airline will use its Twitter account, @AlaskaAir, to announce the winning Copper River salmon recipe. The recipes that will be prepared for the Copper Chef Cook-off are available to download at http://bit.ly/13qe3gS. Fish lovers are encouraged to share their own favorite salmon recipes on Twitter, using the hashtag #SalmonChef.
Enhanced seafood quality training program
Copper River salmon shipped on Alaska Air Cargo this season will arrive as fresh as possible to grocery stores and restaurants across the nation, thanks in part to a cool chain training program required of all airline employees who handle perishables. Alaska Air Cargo employees are required to adhere to strict seafood quality standards and pass an annual food quality course.
Seafood processors and shippers follow these cool-chain standards to provide a temperature-controlled environment for proper food handling. The goal is to keep seafood moving rapidly throughout its journey on Alaska Airlines and maintain a consistent temperature range from the time it leaves the water to when it arrives at stores and restaurants.
Copyright Photo: bruce Drum/AirlinersGallery.com. Alaska Air Cargo’s Boeing 737-490 (F) N709AS (msn 28896) arrives at the Seattle-Tacoma International Airport hub.
Alaska Airlines:
Air India considers selling all eight Boeing 777-200 LRs
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).
Air India:
Transaero Airlines’ 2012 net profit drops by 51% to $28.7 million
Transaero Airlines (Moscow) has issued the following short statement concerning its financial performance during 2012.
Transaero Airlines has published its financial results under RAS for 2012 which demonstrate the Company’s growth.
• Revenue from all activities in 2012 reached RUB 97.6bln, 13% more than in 2011
• Traffic revenue from in 2012 made up RUB 90.3bln, a 35% increase on 2011
• Revenue from asset transactions decreased by 64% and reached RUB 6.8 bln
• The Company’s revenue grew faster than prime costs and expenses.
• Transaero’s sales revenue increased 2.9 times over 2011, to RUB 7 bln
Net profit reached RUB 902 million ($28.7 million), a 51% decrease over 2011. The Company’s profit was mainly ensured by revenues from the main carrier’s activities. Transaero has achieved these results amid a significant growth of air fuel price, social payment and taxes.
In other news, the Russian airline added twice-weekly Boeing 737-500 service from St. Petersburg to Kaliningrad on May 12 in competition against Rossiya Airlines per Anna Aero.
Kaliningrad is a seaport city and the administrative capital of the Kaliningrad Oblast, the Russian exclave located between Poland and Lithuania on the Baltic Sea. This enclave is geographically separated from the rest of Russia.
Copyright Photo: Andi Hiltl/AirlinersGallery.com. Boeing 747-446 EI-XLD (msn 26360) approaches the Turkish resort destination of Antalya.
Transaero Airlines:
airBaltic launches a new route from Riga to Malta, trims its 1Q net loss
airBaltic (Riga) on May 12, 2013 launched a new route from Riga to Malta. The new route will offer convenient travel between the airports, and beyond to destinations in the Baltics, Scandinavia, Russia, and the CIS.
| Destination served
(from North Hub Riga) |
Flight frequency | Start date | Price*, Basic | Price*, Business Flex |
|
Malta |
1 flight weekly | May 12, 2013 | 59 LVL/ 85 EUR | 315 LVL/ 449 EUR |
airBaltic will fly from Riga to Malta once a week on Sundays, the return flight from Malta to Riga will be operated also on Sundays to secure convenient connections. Passengers will board a Boeing 737-300 aircraft (above) for a flight that will last for 3 hours and 40 minutes.
airBaltic serves 60 destinations from its home base in Riga, Latvia. airBaltic offers convenient connections via North Hub Riga to its network spanning Europe, Scandinavia, Russia, CIS and the Middle East. For summer 2013, airBaltic has introduced six new destinations – Prague (Czech Republic), Heviz-Balaton (Hungary), Olbia (Sardinia, Italy), Rijeka (Croatia), Larnaca (Cyprus), and Malta.
On the financial, the struggling flag carrier stated it trimmed its first quarter net loss by over $12 million. The airline issued this statement:
Latvian airline airBaltic has improved its net result by LVL + 6.7 milllion in the first quarter of 2013, compared to the same perid a year ago.
Martin Gauss, Chief Executive Officer of airBaltic: “After improving our consolidated net result by LVL +66 million in 2012, we were again able to beat our own plan.”
For the January to March period, airBaltic achieved +41% improvement of its net result, compared to the same period a year ago. airBaltic achieved +10% yield improvement in the first quarter of 2013 compared to the same period in 2012, and generated LVL 44.5 million in revenues. The unit revenue, or RASK – revenue per available seat kilometer, was improved by +8% in the January to March period, compared to the same period a year ago.
airBaltic operated 9,685 flights in the first quarter of 2013, or 9% less than in the first quarter of 2012 when airBaltic operated 10,637 flights. In March 2013, airBaltic operated 3,442 flights. The airline carried 534,879 passengers in the first three months of 2013 in its network spanning Europe, Scandinavia, Russia, CIS and the Middle East, but in March 2013 the airline carried 201,757 passengers. The airline’s load factor, which represents the number of passengers as a proportion of the number of available seats, in the first quarter of 2013 was at a level of 63%, while in March it stood at 69%.
The 15-minute flight punctuality indicator for airBaltic was at a level of 83.9% in the first quarter of 2013. This means that 83 of every 100 airBaltic flights in the first quarter of 2013 departed at the planned time or with a delay of no more than 15 minutes.
For summer 2013, airBaltic has introduced six new destinations - Prague (Czech Republic), Heviz-Balaton (Hungary), Olbia (Sardinia, Italy), Rijeka(Croatia), Larnaca (Cyprus), and Malta.
Copyright Photo: Ole Simon/AirlinersGallery.com. Boeing 737-33V WL YL-BBK (msn 29332) taxies past the camera at Paris (CDG).
airBaltic:
The European Commission approves the state aid to LOT Polish Airlines
LOT Polish Airlines (Warsaw) has received welcome news from the European Commission of the European Union. The EC was looking into the state aid the airline received last year. The commission stated the aid did fall into the guidelines for state aid and approved the loan from the government of Poland.
Read the full story from NASDAQ: CLICK HERE
Meanwhile the struggling carrier will relaunch Boeing 787-8 jet service on June 5 to Chicago (O’Hare) and later, to New York (JFK), Toronto (Pearson) and Beijing.
Copyright Photo: Nick Dean/AirlinersGallery.com. A beautiful portrait of Boeing 787-8 SP-LRC (msn 35940) on a clear day at Paine Field near Everett.
LOT Polish Airlines:
American to allow passengers with only one personal item to board early
American Airlines (Dallas/Fort Worth) has launched a new systemwide boarding process that saves overall boarding time by allowing customers who are traveling light to board earlier. Customers traveling with one personal carry-on item that fits under the seat in front of them will be invited to board before Group 2.
The new boarding process is another example of how American is reinventing itself by continuously seeking out ways to streamline processes, creating a more efficient and enjoyable customer journey. With on-time performance being a key factor in the airline’s dependability rating, every minute saved during boarding allows American to push back from the gate earlier, resulting in a more timely departure and arrival.
“For customers, departing on time and arriving at their destination on time is a huge factor in how they feel about their overall experience,” said Carol Wright, American’s Vice President – Customer Planning. “Our tests indicate that this new boarding process will improve our dependability and on-time performance, while being easier and more enjoyable for our customers. It’s another example of our promise to put our customers at the center of everything we do.”
The new boarding process follows successful testing done earlier this year at American Airlines gates at airports in Austin, Texas (AUS), Baltimore (BWI), Denver (DEN), Fort Lauderdale-Hollywood, Fla. (FLL), Kansas City, Mo. (MCI), Minneapolis-St. Paul (MSP) and Washington-Dulles (IAD).
The test received overwhelmingly positive feedback from American’s customers, and agents like the new process because it allows for smoother and quicker boarding for everyone. American expects to see a notable reduction in average boarding time per flight with the new boarding process.
American is continually looking for innovative ways to enhance the customer experience. Other recent enhancements designed to give customers more choices when traveling include:
- The expansion of American’s next-generation kiosks with self-tag capabilities for checked baggage, speeding up the check-in process
- New fare choices with perks that include preferred seating, early boarding and same-day flight changes
- More power ports onboard to help customers stay charged and connected throughout their journey
American’s baggage policy allows each customer to take onboard at no charge one personal item that will fit under the seat in front of them and one bag that meets the FAA-mandated carry-on size requirements to fit into the overhead storage compartment. With the new boarding process, customers who wish to board early before Group 2 can gate-check their carry-on bag at no charge.
Copyright Photo: Joe G. Walker/AirlinersGallery.com. Boeing 737-823 WL N980AN (msn 33203) arrives at Las Vegas.
American Airlines:
Newsworthy Photo of the Day – May 16, 2013
Spring Airlines Japan Boeing 737-81D WL N272LM (JA01GR) (msn 39429) BFI (Rick Schlamp). Image: 912049.
Copyright Photo: Rick Schlamp.
Hot New Photos:
Newsworthy Photo of the Day – May 15, 2013
Southwest Air Lines-SWAL/JTA (Japan Transocean Air) Boeing 737-446 JA8999 (msn 29864) HND (Akira Uekawa). Image: 912016.
Copyright Photo: Akira Uekawa/AirlinersGallery.com.
Hot New Photos:
Southwest Airlines helps to launch the Boeing 737 MAX 7
Boeing (Chicago) and Southwest Airlines (Dallas) announced today the launch of the 737 MAX 7, the third member of the 737 MAX family. The carrier and launch customer for the 737 MAX program became the first airline to order the 737 MAX 7, when it converted 30 existing orders for Next-Generation 737s into orders for the 737 MAX 7.
Southwest also exercised options to add five more Next-Generation 737-800s to its fleet. These airplanes, along with the 737 MAX 7s, are part of Southwest’s ongoing effort to improve fuel efficiency and profitability. The 737 MAX 7 supports Southwest’s expanding fleet modernization effort. Southwest is expected to take its first 737 MAX 7 delivery in 2019.
“We are thrilled to announce that Southwest Airlines and Boeing have entered into an agreement for Southwest to be the launch customer for the Boeing MAX 7 series, with deliveries beginning in 2019,” said Gary C. Kelly, Southwest Airlines Chairman of the Board, President, and CEO. “The 737 MAX 7 builds on the strengths of today’s Next-Generation 737-700, incorporating the latest CFM International LEAP-1B engines is expected to reduce fuel burn and CO2 emissions by an additional 12 percent over today’s most fuel-efficient single-aisle airplane.”
The 737 MAX 7 (below) brings the most advanced engine technologies to the world’s best-selling airplane, building on the strengths of today’s Next-Generation 737-700. The 110-ft long airplane incorporates the latest CFM International LEAP-1B engines to deliver improved efficiency with the most reliability and passenger comfort in the single-aisle market. The 737 MAX 7 also will extend the range over today’s 737-700 by approximately 400 nautical miles (741 km).
Image: Boeing.
“Southwest has been a valued partner in the evolution of the 737 program,” said Boeing Commercial Airplanes President and CEO Ray Conner. “We have worked together to launch several models of the 737 including the 737 MAX family in 2011. We are excited to bring the 737 MAX 7 to market with Southwest.”
With the MAX 7 conversions and exercised options for 737-800s, Southwest’s unfilled orders consist of 180 737 MAX airplanes and 137 Next-Generation 737s. The 737 MAX now has orders for 1,315 airplanes.
In other news, Southwest Airlines’ Board of Directors, at its meeting held today, significantly increased the Company’s quarterly dividend to $.04 per share from $.01 per share. Annualized, this amounts to over $100 million. The increase in the quarterly dividend will begin with the 147th consecutive quarterly dividend declared today to Shareholders of record at the close of business on June 5, 2013 on all shares then issued and outstanding. The dividend will be paid on June 26, 2013. The Board also increased the Company’s existing $1 billion share repurchase authorization to $1.5 billion. Of the remaining share repurchase authorization, an initial $250 million of Southwest common stock will be repurchased under an accelerated stock repurchase program.
Gary C. Kelly, Chairman of the Board, President, and CEO, stated: “Over the past 24 months, we have returned over 20 percent of our operating cash flows, or approximately $770 million, to Shareholders through share repurchases and dividends. I am pleased to announce several actions taken today by our Board that follow through with our commitment to deploy free cash flow1 to our Shareholders. The Board authorized an increase in our quarterly dividend payment to $.04 per share from $.01 per share. Based on yesterday’s closing stock price of $13.98, this would provide an approximate one percent annual dividend yield to our Shareholders. The Board also increased our existing $1 billion share repurchase authorization to $1.5 billion. To date, $725 million in share repurchases of the $1.5 billion authorization have been completed since August 2011. This means we have the authority to repurchase an additional $775 million of our common stock. We intend to execute an agreement today to repurchase $250 million of our shares under an accelerated stock repurchase program, which, upon implementation, will immediately bring shares back into the Company.
Top Copyright Photo: Brian McDonough/AirlinersGallery.com. With this announcement, Southwest exercised options to add five more Next-Generation 737-800s to its growing fleet. Boeing 737-8H4 WL N8308K (msn 36682) arrives at Washington (Reagan National).
Southwest Airlines:
Norwegian to launch 20 new routes for the winter 2013-2014, launches its 15th route from London Gatwick
Norwegian Air Shuttle (Norwegian.com) (Oslo) is one of the fastest growing airlines in Europe and continues to launch new routes. The airline has issued this statement concerning the launch of 20 new routes for the coming winter season:
Norwegian is planning to launch 20 new routes this winter season starting in the autumn of 2013. From Stockholm, the company expands the number of direct routes to Malaga, Gran Canaria, Alicante and Tenerife.
Norwegian also announced new routes and increased frequencies on existing routes from Finland, Denmark, Norway and England.
From Sweden and Denmark, the Norwegian winter offer even more departures to several Spanish destinations. From Stockholm, Norwegian is increasing number of flights to Malaga from five to six times per week, to Las Palmas from four to five, Alicante 4-5 and Tenerife from 2 to 3 times a week.
From Gothenburg, Norwegian is increasing the number of flights to Tenerife from one to two times a week. The cvompany is increasing the Copenhagen-Malaga route from eight to nine times a week.
Norwegian has got a very nice reception in the Finnish market and the number of passengers increases constantly resulting in new routes and more departures. For the winter season, Norwegian will fly directly from Oulu to Tenerife and from Turku to Alicante. In addition to these new routes, Norwegian also extends the direct route between Oulu and Alicante in the winter program.
To meet market demand, Norwegian is also increasing flights from Helsinki to several Spanish destinations. The direct flights to Tenerife increases from two to three times a week, Alicante from four to six and Las Palmas from three to four times a week.
As previously reported, Norwegian continues to grow internationally and is launching 11 new routes from Germany to several Spanish destinations. From Hamburg, Norwegian Air Shuttle routes to Alicante, Malaga, Las Palmas and Tenerife. From Cologne launched routes to Alicante, Malaga, Las Palmas and Tenerife. From Munich there will be direct routes to Alicante, Malaga and Tenerife.
In other news, Norwegian has announced flights from London Gatwick to the popular Spanish Canary Island of Fuerteventura starting on October 30. Norwegian will fly twice a week between London Gatwick and Fuerteventura. The new route becomes the 15th route from LGW.
Norwegian has become a significant player at London Gatwick and recently established a UK base at the airport. The airline currently has three aircraft based at London Gatwick and has increased its weekly flights from 198 in 2009 to 320 by the end of the summer.
Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Boeing 737-8JP WL LN-DYW (msn 39010) with the image of Thorbjorn Egner on the tail taxies past the camera at Dublin.
Norwegian:
Copa Holidings reports a 1Q net profit of $113.8 million
Copa Holdings, S.A. (Copa Airlines) (Panama City) has announced financial results for the first quarter of 2013 (1Q13). The terms “Copa Holdings” or “the Company” refer to the consolidated entity. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the first quarter of 2012 (1Q12).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported net income of US$113.8 million for 1Q13, or diluted earnings per share (EPS) of US$2.56. Excluding special items, Copa Holdings would have reported an adjusted net income of $124.4 million, or $2.80 per share, a 37.3% increase over adjusted net income of US$90.6 million and US$2.04 per share for 1Q12.
- Operating income for 1Q13 came in at US$142.6 million, a 27.9% increase over operating income of US$111.6 million in 1Q12. Operating margin for the period came in at 22.2%, compared to 20.5% in 1Q12, as a result of lower unit costs.
- Total revenues increased 18.0% to US$641.3 million. Yield per passenger mile decreased 0.8% to 17.6 cents and operating revenue per available seat mile (RASM) decreased 1.5% to 14.0 cents. However, adjusting for a 6.3% increase in length of haul, yields and RASM increased 2.2% and 1.5%, respectively.
- For 1Q13, robust demand trends resulted in passenger traffic (RPMs) growth of 19.5% on a 19.9% capacity expansion. Consolidated load factor came in at 76.9%, or 0.3 percentage points below 1Q12.
- Operating cost per available seat mile (CASM) decreased 3.6%, from 11.3 cents in 1Q12 to 10.9 cents in 1Q13. CASM, excluding fuel, decreased 4.7% to 6.5 cents.
- Cash, short term and long term investments ended 1Q13 at US$733.4 million, representing 31.2% of the last twelve months’ revenues.
- During the first quarter, Copa Airlines took delivery of two Boeing 737-800 aircraft. As a result, Copa Holdings ended the quarter with a consolidated fleet of 85 aircraft.
- For 1Q13, Copa Holdings reported consolidated on-time performance of 90.0% and a flight-completion factor of 99.7%, maintaining its position among the best in the industry.
| Consolidated Financial & Operating Highlights |
1Q13 | 1Q12 | % Change | 4Q12 | % Change |
| Revenue Passengers Carried (’000) | 1,926 | 1,714 | 12.4% | 1,899 | 1.4% |
| RPMs (mm) | 3,529 | 2,954 | 19.5% | 3,366 | 4.8% |
| ASMs (mm) | 4,590 | 3,829 | 19.9% | 4,447 | 3.2% |
| Load Factor | 76.9% | 77.2% | -0.3 p.p. | 75.7% | 1.2 p.p. |
| Yield | 17.6 | 17.7 | -0.8% | 17.1 | 2.8% |
| PRASM (US$ Cents) | 13.5 | 13.7 | -1.2% | 12.9 | 4.4% |
| RASM (US$ Cents) | 14.0 | 14.2 | -1.5% | 13.5 | 3.6% |
| CASM (US$ Cents) | 10.9 | 11.3 | -3.6% | 11.1 | -2.5% |
| CASM Excl. Fuel (US$ Cents) | 6.5 | 6.8 | -4.7% | 6.8 | -4.1% |
| Breakeven Load Factor (1) | 58.7% | 61.2% | -2.5 p.p. | 61.6% | -2.9 p.p. |
| Fuel Gallons Consumed (Millions) | 60.1 | 51.3 | 17.1% | 58.4 | 2.9% |
| Avg. Price Per Fuel Gallon (US$ Dollars) | 3.34 | 3.33 | 0.4% | 3.34 | 0.1% |
| Average Length of Haul (Miles) | 1,832 | 1,724 | 6.3% | 1,772 | 3.4% |
| Average Stage Length (Miles) | 1,123 | 1,066 | 5.4% | 1,090 | 3.1% |
| Departures | 29,428 | 26,647 | 10.4% | 29,555 | -0.4% |
| Block Hours | 84,490 | 73,394 | 15.1% | 83,146 | 1.6% |
| Average Aircraft Utilization (Hours) | 11.3 | 10.9 | 3.1% | 11.0 | 2.7% |
| Operating Revenues (US$ mm) | 641.3 | 543.3 | 18.0% | 599.8 | 6.9% |
| Operating Income (US$ mm) | 142.6 | 111.6 | 27.9% | 104.3 | 36.8% |
| Operating Margin | 22.2% | 20.5% | 1.7 p.p. | 17.4% | 4.9 p.p. |
| Net Income (US$ mm) | 113.8 | 95.9 | 18.7% | 86.6 | 31.4% |
| Adjusted Net Income (US$ mm) (1) | 124.4 | 90.6 | 37.3% | 89.3 | 39.3% |
| EPS – Basic and Diluted (US$) | 2.56 | 2.16 | 18.5% | 1.95 | 31.5% |
| Adjusted EPS – Basic and Diluted (US$) (1) | 2.80 | 2.04 | 37.1% | 2.01 | 39.4% |
| # of Shares – Basic and Diluted (’000) | 44,387 | 44,341 | 0.1% | 44,409 | 0.0% |
(1) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 1Q13, 1Q12, and 4Q12 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges. Additionally, for 1Q13 excludes a US$13.9 million charge related to the devaluation of the Venezuelan currency.
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-86N WL HP-1826CMP (msn 38031) approaches the runway for landing at Los Angeles International Airport.
Copa Airlines:
Historic Photo of the Day – May 14, 2013
Air Canada Boeing 727-233 C-GYNF (msn 22346) MIA (Bruce Drum). Image: 102830.
Copyright Photo: Bruce Drum.
Air Canada:
Frameable Color Prints and Posters:
Boeing delivers the first direct purchase 767-300 ER to MIAT Mongolian Airlines
Boeing (Chicago) has delivered a 767-300 ER (extended range) to MIAT Mongolian Airlines (Ulaanbaatar), the first-ever direct purchase delivery to the airline.
“This is a momentous step forward for MIAT Mongolian Airlines as we continue to enhance our fleet,” said Jargalsaikhan Gungaa, President and CEO of MIAT Mongolian Airlines. “We are pleased with the comfort, range and payload of the new 767-300ER and we look forward to introducing it into our long-haul fleet.”
Mongolia’s flag carrier completed a historic order in 2011 at the U.S. State Department in Washington, D.C., marking the first time in more than two decades that the airline extended its route network by purchasing Boeing airplanes instead of leasing them.
“We congratulate MIAT Mongolian Airlines on the delivery of their first direct purchase 767-300ER,” said Ihssane Mounir, senior vice president of Sales for Northeast Asia, Boeing Commercial Airplanes. “With the new passenger-pleasing cabin interior and low operating costs, Boeing is confident that the 767-300ER will play an important role as MIAT Mongolian Airlines continues expanding into new markets.”
Copyright Photo: Nick Dean. Boeing 767-34G ER JA-1021 (msn 41519) was handed over to the carrier on May 13.
Mongolian Airlines:
Route Map:
Norwegian and Virgin Atlantic pilots to cooperate on the Boeing 787 training and long-haul expertise, will expand in Germany
Norwegian Long Haul (Norwegian Air Shuttle) (Oslo) has signed a Memorandum of Understanding (MOU) with Virgin Atlantic Airways (London). The agreement enables Norwegian to tap into Virgin Atlantic’s expertise on long-haul operations, while Virgin Atlantic’s instructors will receive pilot training on board Norwegian’s brand new 787-8 Dreamliner. Norwegian’s first Dreamliner is due for delivery at the end of June.
The cooperation with Virgin Atlantic will enable Norwegian’s long-haul pilots to make use of the airline’s vast long-haul experience. Virgin Atlantic will make all its training material available to Norwegian.
Virgin Atlantic’s pilots to train on board Norwegian’s 787 Dreamliner
At the same time, Virgin Atlantic’s 787 instructors will conduct the final part of their pilot training on board Norwegian’s Dreamliners. Virgin Atlantic’s most experienced instructors will continue flying on board Norwegian’s aircraft until the airline receives its first 787 Dreamliner in September 2014, just over a year after Norwegian’s first Dreamliner delivery.
“Introducing a new aircraft type to an airline is an extensive affair. It is therefore important that we learn from each other,” says Director of Flight Operations Norwegian Long Haul, Torstein Hoås.
A great advantage to both parties
“Virgin Atlantic is a successful long-haul airline with almost 30 years of Trans-Atlantic experience. It will be very beneficial for us to receive this support. At the same time, we are looking forward to helping Virgin Atlantic introduce the 787 Dreamliner to its fleet. The cooperation will be a great advantage to both parties,” he continues.
Virgin Atlantic will be the launch customer in Europe of the Boeing 787-9 Dreamliner, a slightly bigger version of the 787-8 Dreamliner. In the agreement signed on Friday, Virgin Atlantic states that it will train a number of Norwegian pilots on board its future Dreamliners.
“Virgin Atlantic are delighted to announce our training partnership with Norwegian. Our combined experience is being effectively utilised to ensure the safe and efficient introduction of the Boeing 787 aircraft to our fleet. We have much in common with Norwegian, having similar high quality training requirements, which has allowed our partnership to take shape,” says Captain Dave Kistruck, GM of Flight Operations for Virgin Atlantic.
In other news, Norwegian is expanding in the Germany-Spain market. The company has issued this statement:
Norwegian Air Shuttle continues its European expansion. The company has announced that it will launch new routes from Hamburg, Cologne and Munich to several Spanish destinations this autumn.
“The expansion in the German market is part of our future strategy to expand our presence outside of the Nordic region in order to meet the strong competition in the airline industry. We see that Germans frequently choose Norwegian when flying to Scandinavia and we believe that there is a demand for a quality airline that offers inexpensive fares between Germany and Spain. We are looking forward to welcoming passengers on board our modern and more eco-friendly aircraft,” said CEO of Norwegian Bjørn Kjos.
From the end of October, Norwegian launches brand new routes between Germany and Spain and will fly to Malaga, Alicante, Gran Canaria and Tenerife from Hamburg and Cologne. From Munich, Norwegian will offer flights to Malaga, Alicante and Tenerife.
Strong expansion
Norwegian is Europe’s third largest low-fare airline. As one of the fastest growing airlines in Europe, it is establishing itself outside of the Nordic region by opening bases in the UK and Spain. At the end of the month, Norwegian will, as the first European low-fare airline, commence long-haul flights to the US and Asia.
From Hamburg
Hamburg-Malaga (November 1), 3 weekly flights, from EUR 29,- one way
Hamburg-Alicante (November 1), 3 weekly flights, from EUR 29,- one way
Hamburg-Gran Canaria (October 27), 2 weekly flights, from EUR 49,- one way
Hamburg-Tenerife (October 27), 2 weekly flights, from EUR 49,- one way
From Cologne
Cologne-Malaga (October 31), 3 weekly flights, from EUR 29,- one way
Cologne-Alicante (November 1), 2 weekly flights, from EUR 29,- one way
Cologne-Gran Canaria (October 28), 2 weekly flights, from EUR 49,- one way
Cologne-Tenerife (October 28), 2 weekly flights, from EUR 49,- one way
From Munich
Munich-Malaga (November 1), 2 weekly flights, from EUR 39,- one way
Munich-Alicante (October 31), 2 weekly flights, from EUR 39,- one way
Munich-Tenerife (October 29), 2 weekly flights, from EUR 59,- one way
Copyright Photo: Norwegian Air Shuttle.
Norwegian:
Virgin Atlantic: 
Turkish Airlines finalizes a firm order for 40 Boeing 737 MAX 8s, 10 737 MAX 9s and 20 737-800s
Turkish Airlines (Istanbul) has finalized a firm order for 40 737 MAX 8s, 10 737 MAX 9s and 20 Next-Generation 737-800 jets, valued at $6.9 billion at list prices. The order, originally announced as a commitment last month, also includes options for an additional 25 737 MAX 8s and is the largest Boeing order in Turkish Airlines’ history.
This announcement brings the total number of 737 MAXs ordered to date to 1,285 and Boeing currently has more than 3,100 unfilled orders for 737s.
Turkish Airlines currently operates more than 85 Next-Generation 737s.
Copyright Photo: Andi Hiltl. Boeing 737-8F2 TC-JFU (msn 29781) approaches Zurich for landing.
Turkish Airlines:
Turkish Airlines announces five new destinations
Turkish Airlines (Istanbul) has announced it will fly to Isparta (Turkey), Santiago De Compostela (Spain), Valetta (Malta) and Salzburg (Austria) following the May 2 addition of Friedrichshafen to its growing network.
Beginning on May 20, the carrier will add roundtrip flights between Istanbul and Isparta (Turkey) and will be operated three times weekly on Mondays, Wednesdays and Fridays.
Isparta flight times as planned starting on May 20;
| Flight No. | Days | Departure | Arrival | ||
| TK2860 | Monday, Friday | Istanbul | 13:25 | Isparta | 14:35 |
| TK2860 | Wednesday | Istanbul | 10:55 | Isparta | 12:05 |
| TK2861 | Monday, Friday | Isparta | 15:20 | Istanbul | 16:25 |
| TK2861 | Wednesday | Isparta | 12:50 | Istanbul | 13:55 |
*All times are in LMT.
Another destination in Spain…
With existing services to Madrid, Barcelona, Valencia, Malaga and Bilbao, Turkish Airlines adds flights to Santiago De Compostela as its 6th destination in Spain. Beginning May 21, Santiago De Compostela flights will be operated three times per week on Tuesdays, Fridays and Sundays in both directions.
Santiago De Compostela flight times as planned starting on May 21;
| Flight No. | Days | Departure | Arrival | ||
| TK1319 | Tuesday, Friday, Sunday | Istanbul | 09:00 | Santiago De Compostela | 12:45 |
| TK1320 | Tuesday, Friday, Sunday | Santiago De Compostela | 13:50 | Istanbul | 19:15 |
*All times are in LMT.
Turkish Airlines’ 226th destination in 100 country, Malta flights begins on May 25, 2013. Roundtrip flights between Istanbul and Malta will be operated three times per week on Tuesdays, Wednesdays and Saturdays.
Malta flight times as planned starting on May 25;
| Flight No. | Days | Departure | Arrival | ||
| TK1369 | Tuesday, Wednesday, Saturday | Istanbul | 12:35 | Malta | 14:20 |
| TK1370 | Tuesday, Wednesday, Saturday | Malta | 15:15 | Istanbul | 18:35 |
*All times are in LMT.
Expansion in Austria as well…
With existing services to Vienna, Turkish Airlines now adds flights to Salzburg as its second destination in Austria. Beginning on May 28, roundtrip flights between Istanbul and Salzburg will be operated four times per week on Mondays, Tuesdays, Thursdays and Saturdays.
Salzburg flight times as planned starting on May 28;
| Flight No. | Days | Departure | Arrival | ||
| TK1381 | Monday, Tuesday, Thursday, Saturday | Istanbul | 12:15 | Salzburg | 13:45 |
| TK1382 | Monday, Tuesday, Thursday, Saturday | Salzburg | 14:45 | Istanbul | 18:05 |
*All times are in LMT.
Copyright Photo: Paul Bannwarth. Boeing 737-8F2 TC-JGA (msn 29785) lands at Basel/Mulhouse/Freiburg.
Turkish Airlines:
Now you can dine on the wing of a Boeing 747 at the Jumbo Stay in Stockholm
Jumbo Stay (Jumbo Hostel) (Stockholm) is now offering the opportunity to stay and now dine on the wing of a Boeing 747 based at Stockholm’s Arlanda Airport. The company is now advertising the following:
“Jumbo Stay is not just a hostel, its also an exciting place to go on an excursion for the whole family and for aviation enthusiasts. Non house guests are very welcome to have a look inside the airplane and to learn abouts its history. In our café you can purchase breakfast, coffee, cookies, ice cream, sandwiches and warm meals.
For the best view of the airplane and of the taxiway-runway, you will now have the possibility to walk along our left wing observation deck and experience the feeling of standing on top of a real Jumbo Jet’s wing.
Everybody is welcome to come and enjoy the view and to have a cup of coffee!”
The preserved Boeing 747-212B was originally delivered to Singapore Airlines as 9V-SQE (msn 21162) on March 30, 1976. However the airframe has also served with Pan Am (N727PA), Nationair (Canada) (C-FNXP), Garuda Indonesia, Cathay Pacific, Tower Air (N514DC and N620FF), Air Club International (C-GCIH), Transjet Airways (SE-RBN), Northeast Airlines (3D-NEE) and Jet Midwest (N981JM).
For more information: CLICK HERE
Copyright Photos: Stefan Sjogren. The Jumbo now carries advertising. Visitors can now have breakfast, lunch or even dinner on the wing of Jumbo Hostel at Stockholm Arlanda. You can see a fence on the wing is now protecting visitors from falling off the Boeing 747-212B.
Below is a view of the wing walking installation. Tables and chairs are provided on the wing!
In the front of the plane there is an elevator and stair case connecting to the main and upper decks of the Jumbo with the ground level.
Video:
United to start Chicago O’Hare-San Juan flights on November 5
United Airlines (Chicago) announced today that it will begin daily flights from its hub at Chicago’s O’Hare International Airport to the Luis Munoz Marin International Airport in San Juan, Puerto Rico, on November 5, 2013.
The flight will depart Chicago at 8:20 a.m. (0820), arriving in San Juan at 2:57 p.m. (1457). The return flight will depart San Juan at 3:55 p.m. (1555) and arrive in Chicago at 7:13 p.m. (1913). The route will be operated with Boeing 737-900 aircraft with seating for 20 in United First, 51 in Economy Plus and 96 in Economy. The airline also announced that it will add a second daily flight for the holiday season from December 4 – January 5, 2014.
Copyright Photo: Ton Jochems. Boeing 737-924 ER N75429 (msn 30130) prepares to land at Los Angeles.
United Airlines:
Gol expands its code-share relationship with Delta
Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aéreos) (Sao Paulo) has announced a key milestone in its partnership with Delta Air Lines (Atlanta): the implementation of Gol code-share on Delta’s flights from Brasilia to Atlanta.
The companies together offer approximately 380 destinations in more than 62 countries.
“The code-share implementation which has now started and will be done in six phases from May to August,” said Paulo Miranda, Alliances and Strategy manager for Delta Air Lines. “Besides the route from Brasilia to Atlanta, soon we will be integrating all flights operated by Delta between Brazil and the United States to Atlanta and flights to the John F. Kennedy International Airport (JFK) and to Detroit and as part of the codeshare agreement”, he emphasizes.
The route from Brasilia to Atlanta is already available to be acquired at Gol channels and the first flight will take place on May 20. The second phase will include flights from Goiania, Belo Horizonte, Curitiba and Porto Alegre all via Brasilia to Atlanta. This action allows baggage to be labeled and dispatched to final destination.
Copyright Photo: Tony Storck. Boeing 737-8EH WL PR-GUI (msn 35844) arrives in Miami.
Gol:
Delta Air Lines:
American launches Dallas/Fort Worth-Seoul (Incheon) service
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
AA 27
- Departs DFW at 10:20 a.m. CT
- Arrives at ICN at 2:50 p.m. KST the following day
AA 26
- 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.
American Airlines:
Boeing rolls out first 787 at Increased production rate
Boeing (Chicago) has rolled out of the factory the first 787 Dreamliner to be built at the increased production rate of seven airplanes per month. The airplane, which rolled out earlier this week, is the 114th 787 to be built overall and the 100th 787 to be built at the Everett, Washington, factory.
Boeing’s 787 program is on track to achieve a planned 10 per month rate by year-end. The production rate accounts for airplanes built at the Everett Final Assembly facility, the Everett Temporary Surge Line and Boeing South Carolina.
To date, 50 787s have been delivered to eight airlines. The program has more than 800 unfilled orders with 58 customers worldwide.
Copyright Photo: Boeing.
Video: CLICK HERE
Rossiya retires its last Boeing 737-500
Rossiya Russian Airlines (St. Petersburg) in April retired its last Boeing 737-500.
Read the full account (in Russian) from ATO.RU: CLICK HERE
Copyright Photo: Stefan Sjogren. Boeing 737-548 EI-CDD (msn 24989) in the Pulkovo colors prepares to land at Stockholm (Arlanda).
Rossiya:
Routes from St. Petersburg:
United Airlines introduces 200th aircraft with live television
United Airlines (Chicago) has equipped its 200th aircraft with live television, offering customers more than 100 channels of live programming while in-flight. United operates more live television-equipped aircraft than any other airline in the world.
United currently offers live television on most Boeing 737 aircraft and on many of its Boeing 757-300 aircraft. In addition to live news, sports and family entertainment, customers may enjoy up to eight newly released movies a month. The service is complimentary for customers in United First and available for purchase in United Economy starting at $5.99 and varying depending on the length of flight.
Live television-equipped aircraft also feature power outlets in United First and United Economy Plus, enabling customers to charge their cell phones, laptops, e-readers and other mobile devices.
Onboard Improvements
The expansion of live television on United aircraft comes as the airline continues to invest in its onboard products.
United offers personal on-demand entertainment for premium-cabin and economy-cabin customers on the majority of its long-haul international aircraft, providing hundreds of hours of movies, television programs, music and games. Additionally, United is:
- Installing satellite Wi-Fi. The airline expects to have more than 200 aircraft equipped with the service by the end of 2013.
- Adding flat-bed seating on all of the airline’s long-haul international aircraft. United currently offers more flat-bed seating than any other U.S. carrier.
- Introducing flat-bed seats on its transcontinental ‘p.s.’ Premium Service, offering a revamped premium cabin, all-new interiors, personal on-demand entertainment, Wi-Fi connectivity, in-seat power and USB ports. The airline expects to complete the reconfiguration of p.s. aircraft by the end of the year.
- Adding extra-legroom Economy Plus seating. The airline currently offers Economy Plus seating on nearly 650 mainline aircraft and approximately 150 regional jets.
- Nearly doubling the overhead storage space on more than 150 Airbus aircraft, with more than half of those retrofits completed.
- Implementing streaming wireless video onboard its Boeing 747-400 aircraft beginning later this year.
Copyright Photo: Michael B. Ing. Boeing 757-33N N57864 (msn 32588) climbs away from the runway at Los Angeles International Airport.
United Airlines:
Delta Air Lines to buy back shares up to $500 million as its financial condition improves
Delta Air Lines (Atlanta) today announced 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.
As part of this program, Delta’s Board of Directors has initiated a quarterly dividend and declared a $0.06 per share dividend for shareholders of record as of Aug. 9, 2013. This dividend will be paid on Sept. 10, 2013. In addition, the Board has 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.
“Delta’s financial performance and balance sheet have strengthened considerably over the past five years and the Board believes the company is now in a position to begin returning cash to our shareholders,” said Daniel Carp, chairman of Delta’s Board of Directors. “The Board’s shareholder return program makes a long-term commitment to our shareholders with the implementation of an ongoing quarterly dividend, while also providing flexibility to return additional cash to shareholders through the share repurchase program.”
Comprehensive Financial Plan
Since 2009, Delta has made significant investments in its people, product and service, while improving its earnings and generating $4 billion of free cash flow. That free cash flow has been dedicated to strengthening the company’s balance sheet. As a result, Delta’s adjusted net debt has fallen from $17 billion at the end of 2009 to just under $12 billion at the end of 2012. The company expects to achieve its $10 billion adjusted net debt target by the end of 2013.
“Delta’s strategy has resulted in a solid financial foundation for our company, tremendous improvements in our fleet, facilities, products and technology, as well as top-notch operational reliability and service to our customers,” said Richard Anderson, Delta’s chief executive officer. “The capital deployment plan unveiled today furthers our commitment to becoming the airline of choice for our employees, customers and shareholders.”
In an investor presentation this morning, Delta outlined a comprehensive, five-year financial plan. The 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, the company 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.
As part of this plan, Delta expects to achieve and maintain an adjusted net debt level of $7 billion, 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 generating more than 50 percent savings in interest expense.
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 required minimum contribution.
Repurchases under Delta’s program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, or accelerated share repurchase transactions in compliance with applicable regulatory guidelines, including Securities and Exchange Commission Rule 10b-18. Purchases will be made subject to market and economic conditions, applicable legal requirements, and other relevant factors. Delta had approximately 855 million shares of common stock outstanding as of March 31, 2013.
Copyright Photo: Michael B. Ing. Boeing 737-832 WL N3755D (msn 29627) in the SkyTeam motif arrives at Los Angeles.
Delta Air Lines:
Austrian Airlines to add a leased Boeing 777-200 ER for eight years
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).
Austrian Airlines:
UPS starts to add Blended Winglets to its Boeing 767-300F freighters
UPS Airlines (United Parcel Service) (Atlanta and Louisville) has unveiled a new look for its flagship Boeing 767 fleet by adding winglets as a part of its sustainability efforts to save fuel and reduce emissions.
These wingtip devices, which are arrow-shaped surfaces attached to the tip of each wing, enhance the overall efficiency of the aircraft, saving fuel by reducing drag while also lowering noise emissions by improving take-off performance. The modifications will save UPS more than six million gallons of fuel each year and reduce carbon dioxide emissions by more than 62,000 metric tonnes. UPS estimates approximately a four percent fuel savings on each 767 flight.
“UPS continues to lead the industry in sustainable business practices,” said David Abney, UPS chief operating officer. “With the widest portfolio of services in the industry, we are constantly looking for ways to reduce emissions, and drive down operating costs so our customers have the solutions they need to compete in a global economy. These winglets are a perfect example of sustainability in action. They are good business and good stewardship.”
UPS currently operates 54 of the 767 aircraft with five on order. The company plans to have winglets on all 767 aircraft by the end of 2014. Winglets are already installed on UPS’s 747, and MD-11 fleets, and the A300-600 has a similar device called a wingtip fence.
The modifications will add approximately five and a half feet of span to each wing, and each winglet is 11 feet tall. Aircraft weight will increase by nearly 3,000 pounds due to the weight of the winglets and the extensive structural reinforcement of the wing structure. Even at this size and weight, the winglets will still reduce the amount of fuel used per flight.
Winglets improve the aerodynamics of the wing by extending the length of the wing and reducing the amount of drag, which is the force that opposes an aircraft’s motion in the air.
The winglet project is a sustainability initiative implemented by UPS Airlines. The company already operates one of the cargo sector’s youngest and most fuel-efficient air fleet, and is working to reduce its carbon intensity an additional 20 percent by 2020 from a 2005 baseline. Other highlights of the airline’s fuel conservation efforts include computer-optimized flight routes, aircraft taxi time management, and alternate-fuel ground support equipment.
Copyright Photo: Joe G. Walker. The first, Boeing 767-34AF ER N304UP (msn 27242) lands at Boeing Field (King County) in Seattle with the new device.
UPS:
Southwest to start Memphis, Pensacola and Richmond service on November 3
Southwest Airlines (Dallas) has announced new service beginning in November to Memphis, Tennessee, Pensacola, Florida., and Richmond, Virginia, completing the planned arrival of Southwest’s Low Fares and Legendary Customer Service in 89 domestic destinations, including all previously served by wholly-owned subsidiary AirTran Airways.
The new nonstop service offered on both carriers comes as Customers are able to purchase itineraries among the two airlines’ combined 97 destinations, including international airports, in one transaction.
Beginning Sunday, November 3, Southwest Airlines will fly nonstop between:
- Memphis and Baltimore/Washington, Houston (Hobby), Orlando, Chicago (Midway), and Tampa
- Pensacola and Nashville and Houston (Hobby)
- Richmond and Orlando (AirTran Airways will continue to operate nonstop service between Richmond and Atlanta.)
AirTran Airways will start service between Memphis and Baltimore/Washington, Houston (Hobby), and Orlando on August 11, 2013.
Also timed with the extension of the flight schedule, AirTran Airways will begin new service in four airports in November.
Beginning Sunday, November 3, AirTran Airways will fly nonstop between:
- Oklahoma City and Atlanta and Chicago (Midway)
- Hartford/Springfield and Atlanta
- Louisville and Atlanta
- Norfolk/Virginia Beach and Atlanta
Southwest Airlines and wholly-owned subsidiary AirTran Airways, in addition to providing new destinations, added nonstop routes to and from airports they currently serve.
Additional New Service on Southwest Airlines Beginning November 3:
- One daily nonstop flight between Atlanta and New York (LaGuardia)
- One daily nonstop flight between Atlanta and West Palm Beach
- One daily nonstop flight between Atlanta and St. Louis
- One daily nonstop flight between Austin and New Orleans
Shifting from AirTran to Southwest Beginning November 3:
- One daily nonstop flight between Atlanta and San Juan, Puerto Rico
- One daily nonstop flight between Dayton and Orlando
- Two daily nonstop flights between Ft. Lauderdale and Philadelphia
- One daily nonstop flight between Ft. Lauderdale and Pittsburgh
- Two daily nonstop flights between Milwaukee and Ft. Myers
- One daily nonstop flight between Pittsburgh and Ft. Myers
Additional New Service on AirTran Airways Beginning November 3:
- One daily nonstop flight between Baltimore/Washington and Kansas City
- One daily nonstop flight between Columbus and Tampa Bay
- Two daily nonstop flights between Ft. Lauderdale/Hollywood and Jacksonville
Seasonal nonstop service will also begin on November 3 for both Southwest Airlines and AirTran Airways, providing Customers a way to travel to popular Florida destinations.
Seasonal Nonstop Service Beginning November 3 between:
- Ft. Lauderdale/Hollywood and Albany, Columbus, Indianapolis, Kansas City, and Raleigh-Durham
- Ft. Myers and Hartford/Springfield, Boston Logan, Akron-Canton, and Philadelphia
- Orlando and Detroit
- Tampa and Norfolk/Virginia Beach
- West Palm Beach and Philadelphia
In other news, Southwest has been awarded two slot exemptions (one daily round trip) from the DOT to operate new service from Houston’s William P. Hobby Airport to Reagan National creating the only nonstop service between DCA and HOU.
Copyright Photo: Tony Storck. Boeing 737-8H4 WL N8314L (msn 36990) arrives at Baltimore/Washington.
Southwest Airlines:
Qatar Airways is coming to Philadelphia
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).
Qatar Airways:
WestJet reports record 1Q net profit of C$91.1 million, will sell 10 Boeing 737-700s
WestJet (Calgary) today announced its first quarter results for 2013. The airline reported record net earnings of $91.1 million, or $0.68 per diluted share, up from the net earnings of $68.3 million, or $0.49 per diluted share reported in the first quarter of 2012. These results mark WestJet’s 32nd consecutive quarter of profitability. Based on the trailing twelve months, the airline achieved a return on invested capital of 14.3 per cent, up from the 13.7 per cent reported in the previous quarter.
“We are very pleased to report our best ever quarterly earnings and for the third consecutive quarter we exceeded our 12 per cent ROIC target by achieving 14.3 per cent,” said WestJet President and CEO Gregg Saretsky. “The excitement is building as we move closer to the launch of WestJet Encore. I want to thank WestJetters for their dedication and tremendous efforts in providing our guests a caring and friendly experience each and every day.”
| Operating highlights (stated in Canadian dollars) | |||
| Q1 2013 | Q1 2012 | Change | |
| Net earnings (millions) | $91.1 | $68.3 | 33.3% |
| Diluted earnings per share | $0.68 | $0.49 | 38.8% |
| Total revenues (millions) | $967.2 | $891.0 | 8.6% |
| Operating margin | 13.7% | 11.9% | 1.8 pts |
| ASMs (available seat miles) (billions) | 6.032 | 5.690 | 6.0% |
| RPMs (revenue passenger miles) (billions) | 5.088 | 4.721 | 7.8% |
| Load factor | 84.3% | 83.0% | 1.3 pts |
| Segment guests | 4,493,324 | 4,230,415 | 6.2% |
| Yield (revenue per revenue passenger mile) (cents) | 19.01 | 18.87 | 0.7% |
| RASM (revenue per available seat mile) (cents) | 16.03 | 15.66 | 2.4% |
| CASM (cost per available seat mile) (cents) | 13.84 | 13.80 | 0.3% |
| CASM, excluding fuel and employee profit share (cents)* | 8.94 | 8.95 | (0.1%) |
*Refer to reconciliations in the accompanying tables for further information regarding calculations.
WestJet announced in February the first two new communities WestJet Encore will be servicing. Beginning on June 24, 2013, WestJet Encore will begin daily service from Calgary and Vancouver to Fort St. John, British Columbia, and from Calgary to Nanaimo, British Columbia.
In January 2013, WestJet launched a three-year company-wide business transformation initiative with a goal to reduce annual costs by $100 million by the end of 2015 and to undertake a longer term initiative to ensure WestJet’s unit costs are competitive with low cost North American airlines. This initiative will focus on aircraft and asset utilization, distribution, productivity, and all non-operational expenses.
For the second quarter of 2013, WestJet expects strong traffic growth and earnings among its best ever for a second quarter, notwithstanding an expected moderate decline in its second quarter RASM which will be impacted by the timing of Easter and Passover, the elimination of Thomas Cook capacity purchase commitments, the loss of the one-time benefit from Air Canada’s labour uncertainty in the second quarter of 2012, and accelerating capacity growth fueled by higher utilization and the launch of WestJet Encore.
For the second quarter of 2013, WestJet expects CASM, excluding fuel and employee profit share, to be flat to up one per cent year-over-year. The airline expects fuel costs to range between $0.84 and $0.86 cents per litre for the second quarter of 2013, representing a year-over-year decrease of six to nine per cent.
For the full year 2013, the airline now expects CASM, excluding fuel and employee profit share, to be flat to up one per cent year-over-year primarily as a result of cost reductions achieved and anticipated through its business transformation initiative, but excluding any benefit from the exemption it received yesterday from Transport Canada, to the requirement for one flight attendant for every forty passengers on board.
WestJet announced today it has entered into an agreement with a third party under which WestJet will sell 10 of its oldest Boeing Next-Generation 737-700 aircraft to that party in 2014 and 2015, and concurrently entered an agreement with Boeing to purchase 10 Boeing Next-Generation 737-800 aircraft in 2014 and 2015, effectively reducing the average age of WestJet’s fleet by approximately one year. WestJet has deferred the delivery of five Boeing Next-Generation 737-700 aircraft from 2014 and 2015 to 2016 and 2017. “These agreements are part of our strategy to optimize and modernize our fleet mix, which will improve CASM, while maintaining fleet flexibility going forward,” added Gregg Saretsky.
Dividend declaration
On May 6, 2013, WestJet’s Board of Directors declared a cash dividend of $0.10 per common voting share and variable voting share for the second quarter of 2013, to be paid on June 28, 2013, to shareholders of record on June 12, 2013. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.
In other news, WestJet confirmed it has received an exemption from Transport Canada to the requirement for one flight attendant for every 40 passengers on board. The exemption, which is effective immediately, allows for one flight attendant for every 50 seats on board the aircraft.
“We are pleased that Transport Canada has granted this exemption,” said Gregg Saretsky, WestJet President and CEO. “One flight attendant for every 50 seats is the accepted international practice and has been in place for decades around the world. “This exemption will place us on a level regulatory playing field with U.S. and international carriers who fly in and out of Canada every day under these rules. Safety is a core value at WestJet and we commend the government for recognizing that there is a consistent level of safety operating under this ratio.”
“WestJet has committed that it will not lay off any flight attendants under this new exemption,” commented Antonio Faiola, WestJet Flight Attendant and Chair of PACT, WestJet’s employee association. “Our history speaks for itself: WestJet has always worked with its employees when our business changes and this is another example of its commitment to its people.”
“We anticipate cost savings once this exemption has been operationalized across our network,” continued Gregg Saretsky. “These savings will allow us to grow our network and continue to provide low fares for the Canadian traveller. We will now work with our operations teams to determine when we can implement these changes which will in turn determine when these savings will be realized.”
On the intent to order 10 new Boeing 737-800s, Boeing issued this statement:
“Boeing is delighted that WestJet has committed to order 10 Next-Generation 737-800s. The commitment, with a current list-price value of $891 million, is a key component of the Calgary-based carrier’s strategy to optimize and modernize its fleet. Boeing looks forward to working with WestJet to finalize the order in the coming days.”
Copyright Photo: Michael B. Ing. Boeing 737-7CT WL C-FWBL (msn 32750) approaches Los Angeles International Airport for landing.
WestJet:
Cargojet earns an operating profit of C$2.7 million for the first quarter
Cargojet Inc. (Cargojet Airways) (Hamilton) announced today financial results for the first quarter ended March 31, 2013 .
For the First Quarter Ended March 31, 2013:
- Total Revenues were $40.7 million, an increase of $0.6 million or 1.5% versus the previous year.
- Gross Margin was $4.9 million, a decrease of of $0.6 million or 10.9% versus the previous year
- EBITDA was $2.7 million (all amounts in Canadian dollars), an increase of $0.8 million or 42.1% versus the previous year
“We are very pleased with the improvement in financial and operating results, as compared to the previous year, despite two less operating days in the quarter”, said Ajay K. Virmani, President and Chief Executive Officer. “We continue to see modest improvements in demand and volumes from all revenue sectors, although overall yields and pricing remain under pressure”. “We will continue to manage our cost prudently and gain efficiencies where available”, he concluded.
Copyright Photo: Rainer Bexten. Boeing 767-223 (F) C-FMCJ (msn 22316) makes a stop at Cologne/Bonn.
Cargojet:
European Routes:
Air India to restore Boeing 787 service on May 22
Air India (Mumbai) will restore Boeing 787 service on May 22 from Delta to Kolkata per Airline Route. Two days later, the carrier will restore 787 service from Delhi to both Bangalore and Chennai. Air India is operating the 787 initially on domestic routes.
Copyright Photo: Duncan Kirk. Most of the Air India 787s are being built at the Charleston, SC facility. Boeing 787-8 VT-AND (msn 36278) is seen at Everett (Paine Field).
Air India:
LAN Airlines to resume Boeing 787 passenger flights on June 1
LAN Airlines (Chile) (Santiago) is planning to resume Boeing 787 passenger operations on June 1. The first route to be restored is the Santiago-Lima-Los Angeles route per Airline Route.
Copyright Photo: Nick Dean. Boeing 787-8 CC-BBB (msn 38466) roars into the clear skies at Paine Field near Everett.
LAN Airlines:
United Airlines to resume Boeing 787 service on May 20 between Houston and Chicago
United Airlines (Chicago) is now planning to resume Boeing 787-8 scheduled passenger operations on May 20 between Houston (Bush Intercontinental) and Chicago (O’Hare) as flight UA 1. Houston-Denver flight start on the following day. United is first re-introducing the grounded type on its relatively short domestic flights as the first phase of the resumption before it restores longer international routes.
Boeing has already converted two of United’s six Dreamliners to the new FAA standards and will soon convert the remainder of United’s fleet. The airline has scheduled flights to begin on May 20 on routes from Houston to other domestic hubs. United will begin international 787 flying on the Denver-Tokyo route on June 10.
Copyright Photo: Michael B. Ing. Boeing 787-8 N20904 (msn 34824) departs from Los Angeles International Airport.
United Airlines:
Lufthansa Group’s first quarter loss widens to $602 million
Lufthansa Group (Lufthansa) (Frankfurt) reported its net loss for the first quarter widened to $602 million, up from a loss of $516.8 million in the same quarter a year ago. the first quarter is usually the weakest quarter for the carrier.
The airline issued this statement:
In the traditionally weak first quarter, Deutsche Lufthansa AG recorded an operating result on a par with last year at EUR -359m. The operating result includes restructuring costs of EUR 64m from the SCORE programme. Earnings improvements in the operating segments helped the Group make up for the extra costs. The net result for the period fell by 16.5 per cent to EUR -459m due to impairment losses and other valuations as of the reporting date. At EUR 6.6bn, revenue for the Lufthansa Group in the first quarter remained stable.
“We took another step towards our target of sustainable earnings improvements in the first quarter. Nearly all the Group companies improved their result,” explained Simone Menne, Member of the Executive Board, responsible for Finances and Aviation Services at Deutsche Lufthansa AG. “We are firmly on course with our SCORE programme.”
In operational terms, the Group improved its result by a total of EUR 95m in the Passenger Airline Group, Logistics, MRO, Catering and IT Services segments. Lufthansa German Airlines achieved the greatest improvement in the operating result, with an increase of EUR 77m. Thanks to a notable reduction in the number of flights and its optimised capacity management, the company boosted the load factor of its aircraft in the first quarter to 75.5 per cent and at the same time increased its yields. The strike by Lufthansa ground staff on 21 March depressed the operating result for Lufthansa German Airlines, as did high fuel costs and the long winter, which also weighed on the other airlines in the Lufthansa Group.
At the end of the first quarter 2013, Lufthansa German Airlines reported an operating loss of EUR 292m. At SWISS, the operating result came to EUR -16m, compared with EUR -3m in the same quarter last year. Austrian Airlines improved its operating result by EUR 11m to EUR -56m. Overall, the operating loss for the Passenger Airline Group segment improved to EUR -363m.
The Lufthansa Group also improved its operating result in the Logistics segment. Lufthansa Cargo increased its operating profit, in part thanks to targeted capacity management and lower depreciation and amortisation. At the end of the first quarter, the figure for the segment was EUR 27m, a rise of EUR 7m. The operating profit for the MRO segment was up by EUR 16m to EUR 81m. Lufthansa Technik adopted some 200 individual measures as part of SCORE in the first quarter, which by 2015 are intended to improve the organisation of administrative functions and align them better with customer needs. LSG SkyChefs improved its operating result by EUR 9m, posting an operating profit of EUR 3m for the period January to March. In the IT Services segment, Lufthansa Systems earned an operating profit of EUR 3m, compared with EUR 4m in the same quarter last year.
Given the improvement of the operating results for the Group companies in the first quarter, the positive contributions by SCORE and stable demand in the passenger business, the Group confirmed its earnings outlook for the year 2013. The operating profit for the Lufthansa Group in 2013 is predicted to be higher than the EUR 524m achieved last year. Positive earnings contributions from SCORE should not obscure the need for further change, however, emphasised Simone Menne, adding, “In competition with well-funded competitors, especially from the Middle East and Far East, and with low-cost airlines in Europe, we need new structures that will allow us to generate higher profits again. Putting the agreed measures into practice remains a challenge. We nevertheless intend to pursue our chosen path and shape our future with the required perseverance.”
The first quarter of 2013 in figures
Revenue for the Lufthansa Group in the first quarter of 2013 came to EUR 6.6bn – an increase of 0.1 per cent on the previous year. Traffic revenue declined by 0.2 per cent to EUR 5.3bn. Overall, the Group’s operating income went up to EUR 7.2bn in the reporting period, an increase of 0.3 per cent.
Operating expenses rose by 1.7 per cent in the first quarter to EUR 7.7bn. Fuel costs climbed by EUR 36m to EUR 1.7bn. This represents an increase of 2.2 per cent. Included in this amount is a negative contribution of EUR 25m from fuel hedging. Fees and charges fell by 2.2 per cent on the previous year, due to a lower number of flights.
In the first quarter, the Lufthansa Group reported an operating result on a par with the previous year of EUR -359m. To facilitate comparison, the operating result for the same quarter last year was adjusted by EUR 22m following the amendments to accounting standard IAS 19. Following this adjustment, the result for the first quarter of 2012 also came to EUR -359m.
The net result for the period was down by 16.5 per cent to EUR -459m. Expenses for severance pay and compensation as part of the SCORE job cuts depressed the Group’s result for the first quarter, as did impairment losses and valuation effects. Earnings per share sank to EUR -1.00.
Lufthansa invested EUR 718m in the reporting period. Of this sum, EUR 657m went on modernising and maintaining the fleet. Cash flow from operating activities came to EUR 976m and free cash flow (cash flow from operating activities less net capital expenditure) to EUR 463m. For the first quarter, the Group had net debt of EUR 1.7bn. Following the application of new accounting standards (IAS 19), the equity ratio is now 15.4 per cent.
| Lufthansa Group | January–March | Change | |||
|---|---|---|---|---|---|
| 2013 | 2012** | 2012(old) | 0.1% | ||
| Total revenue | €m | 6,628 | 6,619 | 6,619 | 0.1% |
| of which traffic revenue | €m | 5,337 | 5,349 | 5,349 | -0.2% |
| Result from operating activities |
€m | -464 | -358 | -379 | -29.6% |
| Operating result | €m | -359 | -359 | -381 | 0.0% |
| Adjusted operating margin* |
in % | -5.2% | -5.2% | -5.6% | 0.0% |
| Net profit/loss for the period | €m | -459 | -394 | -379 | -16.5% |
| Capital expenditure | €m | 718 | 592 | 592 | 21.3% |
| Cash flow from operating activities |
€m | 976 | 833 | 833 | 17.2% |
| Employees as of 31.3. | 116,516 | 120,898 | 120,898 | -4,382 | |
| Earnings per share | € | -1.00 | -0.86 | -0.87 | -0.14 |
*) Operating result plus write-backs of provisions, divided by revenue
**) Previous year’s figures have been adjusted in line with changes to IAS 19
Copyright Photo: Brian McDonough. Lufthansa is gradually replacing its older Boeing 747-430s. D-ABTF (msn 24967) climbs gracefully away from Dulles International Airport near Washington, DC.
Lufthansa:
ANA to resume Boeing 787 operations also on June 1
ANA (All Nippon Airways) (Tokyo) like Japan Airlines, is also planning to restore Boeing 787 service on June 1. The airline is currently conducting test flights on the battery fix.
On the financial side, ANA Holdings, Inc. reported its yearly net profit rose over 53 percent to over $435 million through March 31 despite the grounding on the Boeing 787s.
Read the full report: CLICK HERE
Top Copyright Photo: Nick Dean. The latest 787-8 for ANA is the pictured JA818A (msn 42243) at Everett (Paine Field). All others by ANA.
ANA:
Japan Airlines to restore Boeing 787 service on June 1
Japan Airlines-JAL (JAL Group) (Tokyo) will restore Boeing 787 passenger operations on June 1. Currently the airline is conducting test flights. The restored routes will be Tokyo (Narita)-Boston, Tokyo (Narita)-San Diego, Tokyo (Narita)-Singapore, Tokyo (Haneda)-Singapore and Tokyo (Haneda)-Beijing. A new route from Tokyo (Narita) to Helsinki will commence on July 1. The airline has issued this detailed report on the fleet and route plans:
Boeing 787-8 will return to service in sequence on June 1, 2013 after completely confirming the safety and reliability of the aircraft, including the proper installation of the improvements. JAL restarts daily service between Tokyo (Narita) and Boston as well as San Diego, and the daily nonstop service between Tokyo (Narita) and Helsinki will be launched from July 1, 2013 which was postponed in February 2013.
Larger aircraft, Boeing 777-200 ER instead of Boeing 767 will be assigned to fly between Japan and Bangkok and Honolulu in order to meet a robust passenger demand and further maximize revenue.
With the aim to achieve “Customer Satisfaction Number 1”, one of JAL Group Medium-Term Targets, JAL is actively moving ahead to provide our passengers much more quality products. 777-300 ER (JAL SKY SUITE 777) has been introduced on European and North American routes, in addition, More products like the seats are going to be refurbished on European and North American routes as well as Honolulu and Bangkok (Narita/Haneda=Bangkok) routes which Boeing 787-8 and Boeing 777-200 ER have been used for. The aircrafts equipped with personal TV will be arranged on all the international routes during the first half of fiscal year 2013(year ending March 31, 2014). JAL strives to make every customer’s journey refreshing and comfortable experience.
*The following schedules are subject to government approval.
New Route from July 1, 2013
| Flight Number | Route | Dep. Time | Arr. Time | Aircraft | Class | Days of Operation |
| JL413 |
Narita = Helsinki |
10:30 |
14:55 |
787-8 |
Business, Economy |
Daily (from July 1 to Oct.26,2013) |
| JL414 |
Helsinki= Narita |
17:25 |
09:05 |
Boeing 787-8 Will Be Arranged on the Following Routes**
| Route | Period |
Remarks |
| Narita = Boston |
June 1,2013 ~ |
Daily operation from June 1,2013(4 weekly round-trip flights from Mar,31-May 31,2013) |
| Narita = San Diego |
June 1,2013 ~ |
Daily operation from June 1,2013(3 weekly round-trip flights from Mar,31-May 31,2013) |
| Narita = Singapore |
June 1,2013 ~ |
JL719/JL712,JL711/JL710;JL710(from Jun. 2, 2013) |
| Haneda = Singapore |
June 1,2013 ~ |
|
| Haneda = Beijing |
June 1,2013 ~ |
|
| Narita = Delhi |
July 12,2013 ~ |
|
| Narita = Moscow |
September 1,2013 ~ |
3 weekly round-trip flights(We,Fr,Su) |
| Haneda = San Francisco |
September 1,2013 ~ |
JL001(from August 31,2013) |
| Narita = Sydney |
December 1,2013 ~ |
JL772(from December 2,2013) |
| Narita = Bangkok |
December 2.2013~ |
JL707/JL718, 4 among 7 weekly round-trip flights;JL718(from December 3,2013) |
**The type of aircraft might be changed due to the delivery schedule of the 787-8.
**Please visit http://www.jal.com/en/flight/boeing787/ to get the information regarding JAL’s Boeing 787 fleet.
Other Aircraft Type Changes***
| Route | Details | Period | Remarks(flight/day/aircraft) |
|
Narita = Honolulu |
From767-300ER to 777-200ER |
June 1,2013 ~ | JL782/JL781 |
|
Chubu = Honolulu |
From 767-300ER to 777-200ER |
July12,2013 ~ | |
|
Kansai = Honolulu |
From 767-300ER to 777-200ER |
September 1,2013 ~ | |
|
Kansai = Shanghai(Pudong) |
From 737-800 to 767-300ER |
September 1,2013 ~ | |
|
Haneda = Bangkok |
From 767-300ER to 777-200ER |
December 1,2013 ~ | |
|
Narita = Bangkok |
From 767-300ER to787-8, 777-200ER |
December 1,2013 ~ | JL707/Mo,Tu,Th,Sa/787-8 |
JL707/We,Fr,Su/777-200ER
JL718/Tu,We,Fr,Su/787-8
JL718/Mo,Th,Sa/777-200ER
JL708/Daily/777-200ER
***The type of aircraft might be changed due to the delivery schedule of the 787-8.
Flight Frequency Changes
Temporarily decrease the flight frequency in response to the passenger demand
| Route | Details | Period |
Remarks |
| Narita = Beijing |
from 14 to 7 weekly round-trip flights |
June 1 ~ July 5, 2013 |
JL863/JL864 decreased |
In-flight Products Improvements on the Middle-haul and Long -haul International Routes
Refurbish the products focusing on the Business class on European and North American routes
Starting with the introduction of fully flat seat to Business Class as well as spacious and functional [SKY SUITE 777] sequentially served on European and North American routes, additionally 777-300 ER and 787-8 will be practically used, and JAL SHELL FLAT NEO (Business class) will be provided on more routes. JAL SKY Wi-Fi has been serving on New York, Chicago and Los Angeles’ routes, which will be expanded sequentially on European routes.
| Route | Aircraft | Service | Period | Remarks |
|
Narita = New York |
777-300ER |
SKY SUITE 777.(*1) First Class: NEW JAL SUITE Business Class: SKY SUITE Premium Economy: SKY PREMIUM Economy: SKY WIDER |
Operated every other day from May 1, 2013 and daily operation from the approx. May. |
(*2)
Narita = Paris
July 2013~
Narita = Los Angeles
November 2013~
Narita = Chicago
January 2014~
Narita = Frankfurt
First Class: JAL SUITE
Business Class: JAL SHELL FLAT NEO
Operated every other day from April 2013 and daily operation from the approx. May.
Narita = Moscow
777-200ER
Provide Premium Economy Service
June 2013~the end of August 2013
Haneda = San Francisco
787-8
Business Class: JAL SHELL FLAT NEO
September 1,2013~(*3)
(*1) For more detail on SKY SUITE 777, please visit http://www.jal.co.jp/en/newsky/
(*2) The actual operating date will be introduced on JAL homepage when is has been decided
(*3) The type of aircraft might be changed due to the delivery schedule of the 787-8.
<<International In-flight Internet Service [JAL SKY Wi-Fi]>>
Narita = Frankfurt: daily service from the approx. May 2013(currently provide every other day)
Narita = London: daily service from the approx. July 2013 (currently provide every other day)
Narita = Paris: provide from August 2013
In-flight products improvements on the Southeast Asia, Oceania and Honolulu routes
The 787-8 with JAL SHELL FLAT NEO in Business class and 777-200 ER with JALSHELL FLAT SEAT have been used for Delhi, Sydney, Tokyo (Haneda/Narita) =Bangkok and Honolulu routes, JAL will provide passengers a refreshing onboard experience with the quality in-flight products.
| Route | Aircraft | Service | Period | Remarks |
|
Narita = Delhi |
787-8 |
Business Class: JAL SHELL FLAT NEO |
July 12,2013 ~ | (*1) |
|
Narita = Sydney |
777-200ER |
Provide Premium Economy Service |
June 2013 ~ November 30,2013 | |
|
787-8 |
Business Class: JAL SHELL FLAT NEO |
December 1,2013 ~ | ||
|
Haneda = Bangkok(*2) |
777-200ER |
Business Class: JALSHELL FLAT SEAT |
December 1,2013 ~ | |
|
Narita = Bangkok(*3) |
December 1,2013 ~ | |||
|
Narita = Honolulu (JL782/JL781) |
June 1,2013 ~ | |||
|
Chubu = Honolulu |
July 12,2013 ~ | |||
|
Kasai = Honolulu |
September 1,2013 ~ |
(*1) The type of aircraft might be changed due to the delivery schedule of the 787-8
(*2) Haneda = Bangkok (JL33/JL34): Provide the Premium Economy Service from December 1, 2013.
(*3) Narita = Bangkok: ten round-trip flights operated by 777-200 ER and four round-trip flights operated by 787-8 among 14 weekly flights.
| Flight Number | Aircraft | Dates of Operation | Remarks |
| JL717/JL708 | 777-200ER | Daily | Provide Premium Economy Service |
| JL707 | 787-8 | Mo,Tu,Th,Sa | |
| 777-200ER | We,Fr,Su | ||
| JL718 | 787-8 | Tu,We,Fr,Su | |
| 777-200ER | Mo,Th,Sa |
The aircrafts equipped with personal TV will be arranged on all the international routes
The aircrafts equipped with personal TV will be arranged on Narita=Kaohsiung(*1) and Kansai=Seoul(Gimpo) routes during the first half of fiscal year 2013 to attain all JAL international routes served by aircrafts with personal TV.(*2)
(*1) Kansai=Seoul (Gimpo): Provide the Business Service from June 1, 2013
(*2) The type of aircraft might be changed due to the delivery schedule of the 787-8
New seats will be installed onto Boeing 767-300 ER
Improved 767 with fully flat seat in business class and the new spacious seat in Economy class will be served on middle-haul and long-haul routes in the Second half of Fiscal year 2013. The details of the products and available routes will be introduced as soon as they have been decided.
On the financial side, JAL Group announced its fiscal year (through March 31) operating profit had been cut by $13 million due to the 787 grounding. However the group produced a yearly net profit of $1.8 billion.
Read the full report: CLICK HERE
Copyright Photo: Nick Dean. Boeing 787-8 JA828J (msn 38438) climbs away from the runway at Paine Field near Everett.
JAL-Japan Airlines:
Thomson Airways to introduce the Boeing 787 on July 9
Thomson Airways (London-Luton) will introduce its new Boeing 787-8 on July 9 between London (Gatwick) and Cancun and Glasgow and Sanford (updated) per Airline Route. The airline now expects to take delivery of its first 787 at the end of this month.
Copyright Photo: Nick Dean. The first, the pictured Boeing 787-8 G-TUIA (msn 34422), lands back at Paine Field near Everett after a test flight.
Thomson Airways:
Air Canada loses $143 million in the first quarter
Air Canada (Montreal) today issued its final financial report for the first quarter. The company reported an adjusted net loss of C$143 million. Here is the full report:
Consistent with the news release issued on April 22, 2013 disclosing preliminary results for the first quarter of 2013, Air Canada today reported an adjusted net loss of $143 million or $0.52 per diluted share compared to an adjusted net loss of $162 million or $0.58 per diluted share in the first quarter of 2012. On a GAAP basis, Air Canada’s net loss was $260 million or $0.95 per diluted share compared to a net loss of $274 million or $0.99 per diluted share in the same quarter in 2012. First quarter EBITDAR amounted to $145 million compared to EBITDAR of $174 million in the first quarter of 2012.
“In the quarter we made progress towards the sustainable transformation of Air Canada by narrowing our net loss as compared to the previous year. In addition, we reached an important agreement with the Government of Canada on extending Air Canada’s pension funding arrangements to January 30, 2021. This was then followed last week by the launch and pricing of a private offering of enhanced equipment trust certificates (EETCs) — a first for a Canadian airline,” said Calin Rovinescu, President and Chief Executive Officer.
“I would especially like to express our gratitude to the Government of Canada and certain provincial governments for implementing the so-called Cape Town Convention effective April 1, 2013, which helps level the playing field for Canadian airlines by facilitating their access to debt capital markets for financing their aircraft acquisitions on more favourable terms. Significant work over many years was undertaken by Government officials, in conjunction with our legal and finance teams, to permit adoption of the Cape Town Convention in the most optimal way, and I want to recognize these individuals for their outstanding work.
“While the first quarter’s loss was narrowed compared to the previous year, the quarter fell short of our expectations, in part due to a decline in premium travel demand. We are encouraged to see an improvement in second quarter economy and premium class cabin booking trends which are running above last year’s levels, although the yield environment remains challenging. We remain focused on executing on our plan to increase value for our stakeholders and to continue to reduce our cost structure with the upcoming deliveries of five additional Boeing 777 aircraft, the launch of our leisure carrier Air Canada rouge, the transfer of Embraer 175 regional aircraft to Sky Regional, and the development of our international network with Toronto Pearson as its North American gateway airport. Along with ongoing initiatives for revenue generation and cost control, we are confident of continued improvements and a successful performance for the year ahead. I thank our 27,000 employees for their commitment to taking care of our customers and their dedication to helping ensure Air Canada’s long term success.”
First Quarter Income Statement Highlights
First quarter 2013 system passenger revenues were $2.527 billion, an increase of $3 million, on a 1.1 per cent growth in traffic and a 1.1 per cent decline in yield. Passenger revenue per available seat mile (RASM) increased 1.1 per cent from the first quarter of 2012 on a 1.8 percentage point improvement in passenger load factor. Air Canada reported a record passenger load factor of 81.0% for the first quarter of 2013, reflecting an effective approach to capacity management. The overall yield decline versus last year’s quarter was due to a number of factors including: relatively more leisure versus business passengers in part due to a shift of the Easter holiday from the first week of April in 2012 to the last week of March in 2013, flight cancellations due to severe weather and de-icing service delays at Toronto Pearson International airport which adversely impacted business travel demand, increased industry capacity and competitive pricing activities in certain markets, an unfavourable foreign currency impact, and having one less calendar day in February 2013 than in February 2012 on account of the leap year. In the premium class cabin, passenger revenues decreased $38 million or 6.7 per cent on an 8.4 per cent decline in traffic, partly offset by a yield improvement of 1.8 per cent.
Operating expenses increased $6 million from the first quarter of 2012, reflecting decreases in all major line categories with the exception of wages, salaries and benefits, capacity purchase agreements and the category of “other” operating expenses. In the first quarter of 2013, Air Canada recorded a non-cash impairment charge of $24 million related to Airbus A340-300 aircraft (none of which are operated by Air Canada) in depreciation, amortization and impairment expense.
Air Canada’s adjusted cost per available seat mile (“adjusted CASM”), which excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items (such as impairment charges) increased 1.4 per cent compared to the first quarter of 2012.
In the first quarter 2013, Air Canada recorded an operating loss of $106 million compared to an operating loss of $91 million in the same quarter in 2012, a deterioration of $15 million. The deterioration in Air Canada’s operating results was in large part due to flight cancellations caused by severe weather conditions and aircraft deicing service delays at Toronto Pearson International Airport. Air Canada estimates that these events resulted in a $10 million unfavourable net impact on its financial results in the first quarter of 2013.
Liquidity Highlights
At March 31, 2013, cash and short-term investments amounted to $2,056 million, or 17 per cent of 12-month trailing revenues (March 31, 2012 – $2,185 million, or 18 per cent of 12-month trailing revenues).
At March 31, 2013, adjusted net debt of $3,987 million decreased $246 million from March 31, 2012, reflecting the impact of lower debt balances, a decrease in capitalized operating leases, partially offset by a decrease in cash balances.
Free cash flow of $147 million increased $7 million from the first quarter of 2012.
Current Outlook
In the second quarter of 2013, Air Canada expects its system ASM capacity, as measured by available seat miles (ASMs), to increase in the range of 2.0 to 3.0 per cent when compared to the second quarter of 2012.
Air Canada continues to expect full year 2013 system ASM capacity to increase in the range of 1.5 to 2.5 per cent when compared to the full year 2012. Air Canada also continues to expect its full year 2013 domestic capacity to increase in the range of 0.5 to 1.5 per cent from the full year 2012.
For the second quarter of 2013, Air Canada expects adjusted CASM to be in the range of a decrease of 0.5 per cent to an increase of 0.5 per cent when compared to the second quarter of 2012.
Taking into account the better than expected adjusted CASM result in the first quarter of 2013, Air Canada now expects its full year 2013 adjusted CASM to decrease in the range of 0.5 to 1.5 per cent from the full year 2012.
Air Canada’s outlook assumes Canadian GDP growth of 1.25 to 1.75 per cent for 2013. In addition, Air Canada expects that the Canadian dollar will trade, on average, at C$1.02 per U.S. dollar for the second quarter of 2013 and for the full year 2013 and that the price of jet fuel will average 85 cents per litre in the second quarter of 2013 and 86 cents per litre for the full year 2013.
Copyright Photo: Dave Glendinning. Boeing 767-375 ER C-FCAE (msn 24083) (70 Years – TCA 1937) taxies at London (Heathrow).
Air Canada:
Icelandair remains in the red with a 1Q net loss of $18.3 million
Icelandair Group (Icelandair) (Keflavik) reported a net loss of $18.3 million in the first quarter, an increase from a net loss of $13.2 million in the same quarter a year ago.
The airline issued this statement:
Icelandair Group organic growth continues
- Losses after taxes USD $18.3 million, as compared to USD $13.2 million in the preceding year
- Performance in the quarter exceeded management projections
- EBITDA negative by USD $8.3 million, as compared to negative USD $3.0 million last year
- Passenger revenues increased by 24% between years
- Total revenue increased by 10%
- Equity ratio was 32% at the end of March
- Net cash provided by operating activities USD 78.5 million, as compared to USD 86.1 million in the preceding year
Björgólfur Jóhannsson, President and CEO:
“Icelandair Group’s performance over the quarter was better than our budget projected and estimates of continued growth materialized. Capacity on international flights increased by just short of a quarter in the first three months of the year, and the increase in passenger numbers over the same period was 18%. The greatest increase was in the number of passengers on the North Atlantic market, about 40%. The number of passengers in the tourist market to Iceland also increased significantly from last year, with a positive impact for all tourist services in Iceland. The Group’s freight activities have shown a turnaround. Freight charter projects have been downsized systematically, and the focus has been shifted to scheduled air freight services, which has returned good results.
At the start of the year we issued an EBITDA forecast for 2013 in the range of USD 115-120 million. The performance in the first quarter was in excess of the forecast, and in addition operating prospects are generally positive. Based on adjusted assumptions, EBITDA for the year is now projected at USD 122-127 million.”
Copyright Photo: Antony J. Best. Boeing 757-308 WL TF-FIX (msn 29434) departs from London (Heathrow).
Icelandair:
Route Map:
WestJet arrives in Myrtle Beach, South Carolina
WestJet (Calgary) yesterday (May 2) launched new twice-weekly nonstop service between Toronto (Pearson) and Myrtle Beach, South Carolina. The first flight left Toronto’s Pearson International Airport at 9:30 a.m. EDT.
Details of WestJet’s new nonstop twice-weekly service (Thursdays and Sundays) between Toronto and Myrtle Beach, South Carolina, are as follows:
| Flight | Departing | Arriving | Effective |
| 1154 | Toronto at 9:30 a.m. | Myrtle Beach at 11:35 a.m. | May 2, 2013 |
| 1155 | Myrtle Beach at 12:20 p.m. | Toronto at 2:14 p.m. | May 2, 2013 |
Introductory one-way fares starting at:
| Departing | Arriving | Air transportation charges (ATC) |
Taxes, fees and charges |
Total one-way price from |
|
| Base fare from | Other ATC | ||||
| Toronto | Myrtle Beach |
$89 | $7.50 | $82.27 | $178.77 *CAD |
*Some restrictions apply.
Further service expansion began April 29, when WestJet launched new nonstop daily service between Calgary and Dallas-Fort Worth, offering more connectivity than ever to the United States through WestJet’s code-share agreement with American Airlines. Within Canada, WestJet is also increasing the number of flights between Toronto and Vancouver, Edmonton, Calgary, Saskatoon and Regina, and will introduce new nonstop service between Toronto and Fort McMurray. The airline will also increase to two flights daily from one between Calgary and Los Angeles, and to 11 from seven flights weekly between Toronto and Orlando.
Internationally, WestJet will extend service to Aruba; Liberia, Costa Rica; and Trinidad and Tobago on a year-round basis. The airline will also add one extra flight each week between Toronto and Kingston and Montego Bay, Jamaica; Varadero, Cuba; St. Maarten; Puerto Plata, Dominican Republic; and Cancun, Mexico.
Copyright Photo: Bruce Drum. Boeing 737-7CT WL C-FWBL (msn 32750) approaches for landing at Orlando International Airport.
WestJet:
Reuters: Boeing to offer the longest range airliner with the proposed 777-8X and a 400-seat 777-9X
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
