Tag Archives: Embraer 190

Delta’s CEO Richard Anderson: The 40 Boeing 737-900 ERs and 20 Embraer E190s will be cancelled

Delta Air Lines (Atlanta) management team held a conference call yesterday, mainly with the analysts and representatives of the media, after posting a record second quarter profit, beating all Wall Street forecasts.

In the conference call, CEO Richard Anderson when asked about the rejection of the proposed contract by the pilots, stated, without elaborating further, the 40 Boeing 737-900 ERs and 20 Embraer ERJ 190s on order “will be cancelled”. The company had tied these two orders with the ratification of the new pilot contract.

The comment could be considered posturing by some observers, intended as a new salvo to the pilots for the next round of contract negotiations.

The pilots, represented by ALPA, voted nearly two-to-one against the proposed contract. Both sides will now have about six months to further negotiate new terms in which both sides can agree.

ALPA has not formally responded to the comments.

The Embraers would have represented a new lower level of mainline flying.

Read more from Bloomberg Business: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-932 ER N817DN (msn 31928) banks on the river approach to the runway at Washington’s Ronald Reagan National Airport.

Delta Air Lines aircraft slide show: AG Airline Slide Show

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Teamsters file a lawsuit against Republic Airways, Republic responds

Teamsters Local 357 has filed a lawsuit against Republic Airways Holidays (Indianapolis) charging the company has unilaterally changed the working conditions for its pilots regarding “open time” flying. Here is the full statement:

INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOGO

On July 9, Teamsters Local 357 in Plainfield, Indiana, filed a lawsuit against Republic Airways for unilaterally changing pilots’ working conditions regarding “open time” flying without first agreeing with the union about those changes. More than 2,200 Republic pilots are members of Local 357 and have been seeking a fair contract from the company since 2007.

The lawsuit asserts that the company’s changes are unlawful alterations in the status quo and that they took place even while the items changed were the subject of ongoing bargaining between Local 357 and Republic. The purpose of the lawsuit is to compel Republic’s compliance with its lawful duties under the Railway Labor Act (RLA), the federal law which governs labor relations in the airline industry.

To uphold the principle that Republic can only make changes to the pilots’ agreement through the bargaining process, Local 357 filed a lawsuit in the U.S. District Court in Indianapolis (case number: 1:15-cv-01066-WTL-MJD) seeking injunctive relief, declaratory judgment and other appropriate relief against the company’s unlawful changes in the status quo of pilot contractual rates of pay, rules and working conditions.

“Republic has had eight years to come to an agreement. The pilots are seeking a fair contract that spells out pay, benefits and working conditions, so that the company can’t give something and take it back at their whim. That’s what these hardworking, skilled pilots deserve now—plain and simple,” said Jim Clark, President of Local 357.

Pending the outcome of this lawsuit, the pilots will maintain their normal practice with regard to flying.

Republic Airways Holdings (Indianapolis) has responded to the lawsuit:

Republic Airways Holdings logo

On Thursday, July 9, 2015, the International Brotherhood of Teamsters (IBT) Local 357, representing Republic’s pilots, filed suit against the Company alleging that the Company unilaterally increased compensation for pilots and new hires in violation of the Railway Labor Act. We believe the suit is completely without merit, and the Company will take appropriate steps to respond. The specific allegations made by IBT Local 357 are incomplete and factually incorrect.

The IBT and the Company are currently in the middle of negotiations supervised by the National Mediation Board for an amended collective bargaining agreement.

The Company stands ready with its current proposal to make a significant investment in our pilots, which is not only fair and equitable, but would place our pilots ahead of their peers in the regional airline industry. This lawsuit is nothing more than an improper tactic by IBT Local 357 to distract our employees and pressure the Company with respect to the negotiations process.

Top Copyright Photo: Formerly operated for Frontier Airlines (2nd), Embraer ERJ 190-100 IGW N163HQ (msn 19000255) is painted in the Republic Airways house livery, but it is operated by Republic Airlines (2nd). The regional jet lines up for the runway at Baltimore/Washington (BWI).

Republic Airways aircraft slide show: AG Airline Slide Show

Colorful Guizhou Airlines orders seven Embraer 190s

Colorful Guizhou ERJ 190-100 (15)(Flt)(Embraer)(LRW)

Embraer S.A. announced today at the 51st International Paris Air Show that it has concluded an agreement for 17 E190s with Colorful Guizhou Airlines, the first locally-owned airline in China’s Guizhou Province. The contract is for seven firm orders, which will be included in Embraer’s 2015 second-quarter backlog, and ten options and has an estimated value of USD 834 million at current list price if all options are exercised. The first aircraft is scheduled for delivery in 2015.

Colorful Guizhou Airlines is Embraer’s fifth E-Jet customer in China and the first in the southwest of the country.

Colorful Guizhou Airlines plans to inaugurate service this year. Established by the Guizhou Industrial Investment (Group) Co., LTD, it will target operating to cities in Guizhou and neighboring provinces. Its entrance marks the end of the absence of a locally-owned airline in Guizhou and the start of improvements to regional aviation in western China.

About Colorful Guizhou Airlines

With 1 billion RMB in registered capital, Colorful Guizhou Airlines is the first locally-owned airline in Guizhou Province. It is positioned as a “combination of regional airline and low cost trunk carrier” providing its customers with safe, punctual, comfortable and convenient air service. Its formation will help to promote local tourism and related industries, and further accelerate the development of the local economy.

Image: Embraer.

Air Canada establishes three financial targets for 2015, will replace 20 Embraer 190s

Air Canada (Montreal) issued this statement:

Air Canada logo-1

As part of a comprehensive strategic plan update to the investment community, Air Canada will establish three new financial targets at its 2015 Investor Day to be held today in Toronto from 09:00 to 12:00 EST.

Building on the success of its business plan, from 2015 until 2018, Air Canada is targeting an annual EBITDAR(1) margin (earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent, as a percentage of operating revenue) of 15 to 18 percent and a year-over-year return on invested capital (ROIC) (1) of 13 to 16 percent during that period and, by 2018, a leverage ratio(1) of 2.2 (measured by adjusted net debt over normalized EBITDAR).

“We have continued to make significant progress in the execution of our business plan since we first provided the investment community with our financial targets in June 2013,” said Calin Rovinescu, President and Chief Executive Officer of Air Canada. The implementation of our fleet initiatives, capital programs, liquidity targets and debt levels remain on target and we’re delivering on a permanently lower cost structure while profitably growing our business, especially our international routes.

“With our growth, we have successfully expanded margins, increased adjusted net income and improved our return on invested capital, thereby creating substantial value for shareholders. We’ve strengthened our balance sheet, reduced the cost of debt and most significantly achieved all of our objectives in restructuring our pension plans. Now that our pension plans are healthy and in a surplus position, by opting out of the special Air Canada 2014 pension regulations, we expect to free up approximately $1.1 billion in previously allocated deficit funding contributions over the next six years which may now be redeployed to further improve our competitive position and create incremental value.

“In 2013, we set out to achieve some very specific targets relating to our costs per available seat mile (CASM) and ROIC, amongst others. Building on our successful execution against these targets, we are raising the bar with more ambitious objectives and are confident that our new financial targets will be attained. We will continue our singular focus on the four priorities that have brought us this far – namely, reducing costs and enhancing revenues, profitably growing by leveraging our international network and partnerships, engaging our customers and culture change. Our new targets are significantly higher than those we set out in 2013 and reflect our confidence that we are pursuing the right strategic plan to deliver sustained profitability and value for our shareholders over the long term and that we are executing on it successfully,” said Mr. Rovinescu.

At its June 2013 Investor Day, Air Canada had projected that a number of key initiatives, including the roll-out of Air Canada rouge® and the introduction of the new Boeing 787 Dreamliners, taken together, would drive an estimated 15 percent reduction in CASM by 2018 when compared to 2012.

Since its June 2013 Investor Day, the airline added and announced a number of new cost reduction initiatives, including:

the reconfiguration of Boeing 777 aircraft;

the replacement of 20 Embraer 190 aircraft with five larger Airbus narrow-body and five Boeing 767 aircraft;

an amended and extended capacity purchase agreement with Jazz;

the introduction of an additional two high-density Boeing 777 aircraft; and

the selection of Boeing 737 MAX aircraft (below) to replace the Airbus narrow-body aircraft in its fleet.

 

Air Canada 737-8 and 737-9 MAX

Air Canada 737-8 and 737-9 MAX

Air Canada is on track to exceed the 2013 Investor Day Targets and, taking the added initiatives into account, now estimates that it should realize CASM savings (excluding the impact of foreign exchange and fuel prices) of 21 percent by the end of 2018 when compared to 2012.

In addition, at the end of the first quarter of 2015, unrestricted liquidity was at $3.123 billion (compared to a minimum target of $1.7 billion), ROIC was at 15.2 percent (compared to a target of 10-13 percent) and the airline’s leverage ratio, as measured by adjusted net debt over normalized EBITDAR, was at 2.6 (compared to a target ceiling of 3.5).

The outlook provided in this news release constitutes forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of risks and uncertainties. Please see section below entitled “Caution Regarding Forward-Looking Information”.

Attendance at Air Canada’s 2015 Investor Day is by invitation only. A live, listen-only audio webcast of the event along with accompanying presentation slides will be available through a link on Air Canada’s website at http://www.aircanada.com (Investors section).

Major Assumptions

Assumptions were made by Air Canada in preparing and making forward-looking statements. As part of its assumptions, during the 2015 to 2018 period, Air Canada assumes annual Canadian GDP growth of 2.0 to 2.4 percent, annual Canadian Consumer Price Index (CPI) growth of 2.1 percent, and an average annual wage rate increase of 2.0 percent. Air Canada also assumes that the Canadian dollar will trade, on average, at C$1.22 to C$1.23 per U.S. dollar and that the price of jet fuel will average 70 cents to 81.5 cents, as set out in the table below for each year during the 2015 to 2018 period.

Top Copyright photo: Bruce Drum/AirlinersGallery.com. 20 Embraer 190 aircraft will replaced according to the plan. Embraer ERJ 190-100 IGW C-FMZW (msn 19000124) taxies away from the gate at Seattle-Tacoma International Airport.

Air Canada aircraft slide show: AG Airline Slide Show

Finnair is facing a possible strike next week (now withdrawn)

Finnair (Helsinki) is facing a possible strike by the Finnish Aviation Union for next week that will possibly affect Finnair and other airlines operating to Finland. The airline has issued this statement:

Finnair logo

The Finnish Aviation Union has issued a strike warning for May 19-20, 2015, and the possible strike would impact also Finnair and its subcontractors. The strike is in connection to a dispute related to a collective labor agreement applied to a Finnish ground handling company. Finnair is not a party to the dispute in any way. The strike would also impact other airlines operating to and from Finland.

Even though the dispute is not related to Finnair, the strike would, if implemented, have significant impacts on Finnair flights, as it would bring Finnair’s baggage and ground handling services to a complete halt for several hours during peak travel hours on May 19-20. The strike would thus disrupt the travel plans of thousands of Finnair customers. Finnair has already offered customers the possibility to change their travel dates to avoid traveling on the possible strike days.

If the strike threat is not withdrawn, Finnair is forced to cancel many of its flights on May 19-20, to avoid a situation where thousands of customers would be stranded at Helsinki Airport when their connecting flights cannot be operated. Some cancellations will also have to be made on May 18 and May 21.

First cancellations will be made for certain flights for Monday, May 18, and Finnair will inform customers of these cancellations on Sunday, May 17.

Update May 16: From Finnair:

Finnish Aviation Union has withdrawn the threat of a support strike, which would have had significant impacts on Finnair and its subcontractors among others, and the parties to the dispute have reached an agreement.

Copyright Photo below: Ton Jochems/AirlinersGallery.com. Embraer ERJ 190-100LR OH-LKI (msn 19000117) taxies to the gate at the Helsinki hub.

Finnair aircraft slide show: AG Airline Slide Show

 

JetBlue and Amazon team up to offer Amazon Prime customers access to inflight movies

JetBlue Airways (New York) and Amazon (Seattle) today issued this joint statement:

JetBlue logo-2

Amazan and JetBlue announced that they will bring unlimited, on-demand entertainment to airline travel later this year through JetBlue’s free high-speed Fly-Fi broadband internet, the industry’s fastest complimentary inflight Internet service, to create an unmatched entertainment experience in the sky.

Amazon logo

The collaboration will enable Fly-Fi for Amazon Prime members to instantly access tens of thousands of movies and TV episodes, including exclusive Amazon Original Series such as Transparent, Mozart in the Jungle and Bosch, at no additional cost to their membership. In addition, all JetBlue customers will be able to rent or purchase hundreds of thousands of titles in the Amazon Instant Video store, including new release movies and day-after TV programming, over the free broadband internet.

Fly-Fi uses satellite technology to give customers Internet speeds that feel like what they have at home or work. Amazon and JetBlue worked together to ensure that the inflight entertainment system met the premium experience expected by customers when streaming movies and TV episodes from Amazon. Access to Amazon’s entertainment library will be built into the JetBlue Fly-Fi Hub, giving customers instant access to watch titles from Amazon on their laptops, Fire devices, iPhones, iPads and Android phones and tablets—no pre-flight download needed. JetBlue’s free Fly-Fi broadband Internet will be available on all JetBlue’s Airbus A321 and A320 aircraft this year, and on JetBlue’s Embraer E190 aircraft in 2016.

“Just like at home, customers will be able to access movies and TV shows from Amazon from 35,000 feet in the sky over our super fast and free Fly-Fi,” said Jamie Perry, Vice President, Brand and Product Development, JetBlue. “Amazon’s customer focus aligns perfectly with the experience we have created for our customers, including the best inflight entertainment, free unlimited snacks and beverages, lots of personal space with the most legroom in coach and wide, comfortable seating. By teaming up with a category-leader like Amazon, we created a unique model where we can offer complimentary broadband Internet access.”

Prime members will be able to instantly stream binge-worthy Amazon Original Series, including the Golden-Globe award-winning series Transparent, the hour-long police drama Bosch, and the Jason Schwartzman and Roman Coppola comedy, Mozart in the Jungle, in addition to original kids series such as the Emmy and Annie award winning series, Tumble Leaf and the Emmy nominated live-action series, Gortimer Gibbon’s Life on Normal Street. They can also enjoy top network series available on Prime Instant Video such as The Americans, Downton Abbey, Justified, The Good Wife, Grimm, Mr. Selfridge Orphan Black, Sons of Anarchy, Suits, Veronica Mars and Vikings.

On top of unlimited instant access to movies and TV episodes, Amazon Prime members will be able to access and listen to more than one million songs available on Prime Music. All JetBlue customers will be able to purchase and download songs from the Amazon Music store, eBooks from the Kindle store, and apps and games from the Amazon Appstore and earn TrueBlue points when they shop specific categories on Amazon over the free Fly-Fi broadband internet while inflight or through JetBlue promotions.

Top Copyright Photo: Brian McDonough/AirlinersGallery.com. Embraer ERJ 190-100 IGW N258JB (msn 19000047) in the Tartan scheme turns on its final river approach to Washington’s Reagan National Airport.

JetBlue Airways aircraft slide show: AG Airline Slide Show

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Air Moldova to relaunch Chisinau – Madrid flights

Air Moldova (Chisinau) expands its route network by relaunching the new nonstop flights on the  Chisinau-Madrid-Chisinau route, starting on April 9, 2015.

The restored route will be operated once per week, on Thursdays, by Embraer-190 aircraft according to the following schedule:

Departure from Chisinau – 19:40 (local time)
Arrival to Madrid – 22:45 (local time)
Departure from Madrid – 00:40 (local time)
Arrival to Chisinau – 05:20 (local time)

Copyright Photo: Jacques Guillem Collection/AirlinersGallery.com.

Air Moldova aircraft slide show: AG Airline Slide Show

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