American Airlines (Dallas/Fort Worth) today (March 5) is ending scheduled McDonnell Douglas DC-9-82/83 (MD-82/83) “Super 80″ service at New York’s LaGuardia Airport (LGA) according to Airline Route. The aging type was being deployed on the Chicago (O’Hare)-LGA route.
Copyright Photo: Bruce Drum/AirlinersGallery.com. The older AA aircraft are now being repainted in the new livery as they will be replaced. McDonnell Douglas DC-9-82 (MD-82) N3507A (msn 49801) departs from runway 27R at Fort Lauderdale-Hollywood International Airport.
Allegiant Air (Las Vegas) today announced new, nonstop jet service on 12 routes, including a new destination in the Allegiant network – Palm Beach, Florida.
New routes announced include:
Seasonal Nonstop Service to Los Angeles International Airport (LAX) from:
- Cedar Rapids, Iowa - begins June 6, 2014 with fares as low as $92*
- Great Falls, Montana - begins June 6, 2014 with fares as low as $88*
- Kalispell, Montana - begins June 5, 2014 with fares as low as $89*
- McAllen, Texas - begins June 5, 2014 with fares as low as $99*
Seasonal Nonstop Service to Myrtle Beach International Airport (MYR) from:
- Cincinnati, Ohio - begins May 30, 2014 with fares as low as $59*
- Columbus, Ohio - begins May 29, 2014 with fares as low as $54*
- Lexington, Kentucky - begins May 29, 2014 with fares as low as $54*
- Syracuse, New York - begins May 29, 2014 with fares as low as $64*
Seasonal Nonstop Service to St. Petersburg-Clearwater International Airport (PIE) from:
- Cincinnati, Ohio - begins May 15, 2014 with fares as low as $59*
Year-Round Nonstop Service to Palm Beach International Airport (PBI) from:
- Asheville, North Carolina - begins May 5, 2014 with fares as low as $64*
Year-Round Nonstop Service to Phoenix-Mesa International Airport (AZA) from:
- Colorado Springs, Colorado - begins May 15, 2014 with fares as low as $49*
- Stockton, California - begins May 15, 2014 with fares as low as $58*
Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) prepares to land in Las Vegas.
Biman Bangladesh Airlines (Dhaka) as planned, operated the last revenue passenger flight of a McDonnell Douglas DC-10 yesterday (February 24). The last flight was a charter flight (flight 008) from Birmingham with the pictured DC-10-30 S2-ACR (msn 48317) with 200 passengers eager to fly the last flight. The DC-10 type has flown passengers for nearly 43 years and continues today as a freighter with several cargo airlines.
Read the full report from the BBC: CLICK HERE
Top Copyright Photo: Nik French/AirlinersGallery.com. S2-ACR departs from Birmingham on the the next-to-last charter flight.
Bottom Copyright Photos: Allan Huse. A picture of the flight crew and the cockpit for the last flight from Birmingham. The seats in the middle were not sold. Only the window and exterior aisle seats were sold on the last flight.
Video: Amateur video of one of the enthusiast charter flights from Birmingham:
Biman Bangladesh Airlines (Dhaka) today (February 20) operated the last McDonnell Douglas DC-10 passenger flight in the world with DC-10-30 S2-ACR (man 48317). The final flight today flew from Dhaka to Birmingham, England via a refueling stop in Kuwait City. Current plans are reportedly to scrap the wide body airliner for its parts and residual metal value.
Before the final disposition of S2-ACR, Biman will operate scenic flights from Birmingham this weekend. The airline issued this statement about the scenic flights:
Due to an overwhelming response from aviation enthusiasts from around the world, we are going to operate scenic flights on the weekend of February 22, 23 and 24 from Birmingham Airport. The first flights to go on sale will operate on the Monday, February 24 at 0900, 1200 and 1500 with a block time of an estimated one-hour. If as expected, they sell out quickly we open up the Sunday, February 23 flights up for the same times of 0900, 1200 and 1500. As these sell out then we will open up the Saturday flights also at the same times – 0900, 1200 and 1500. As with the last commercial flight from Dhaka, we are keeping the prices for these scenic flights at reasonable levels with prices of ₤150 for a window seat and ₤100 for an aisle seat. Please note that for the last commercial flight ever on Monday February 24 @ 1500, prices have been set slightly higher at ₤200/₤150. In order to keep the flights as “special” as possible we are only selling 152 of the 319 seats on the aircraft – therefore all are window or aisle seats.
Read the full story from the BBC: CLICK HERE
The retirement came as a result of a new Boeing 777-300 ER delivery. Biman issued this statement on the new arrival of 777-3E9 S2-AHM (msn 40120):
Biman Bangladesh Airline’s newest aircraft, the Boeing 777-300 ER is the world’s largest twinjet aircraft, this long-range wide-body plane is popularly known as the “Triple Seven”. Our newest 777-300 ER is the third extended range 777 to join our modern fleet.
The latest 777-300 ER is named “Akashprodip” and replaces the retired DC-10 for long-range flights to serve destinations such as Frankfurt, Rome, London, and Birmingham.
Biman’s Managing Director and CEO Kevin Steele personally took delivery of latest 777-300 ER from Boeing’s Seattle headquarters on February 6. The new plane, painted in Biman’s bi-colored livery, traveled on a nonstop flight from Seattle to Dhaka.
The receiving ceremony of the newest 777-300 ER was held February 11, 2014 at Hazrat Shahjalal International Airport in Dhaka, inaugurated by Prime Minister Sheikh Hasina. At the ceremony she said, “Biman acts as the representative of Bangladesh abroad and it flies across the world as the symbol of our independence.”
Biman will soon take delivery of its fourth Boeing 777-300 ER, named “Rangaprobhat” on March 21. The delivery is part of a ten aircraft contract with Boeing. Future plans are to secure two Boeing 737-800s and four Boeing 787-8s by 2019.
Top Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com (all others by Biman). McDonnell Douglas DC-10-30 S2-ACR 9msn 48317) arrives at London (Heathrow) on a previous flight.
Allegiant Air (Las Vegas) on June 6 will resume two routes from Los Angeles. The ultra low fare carrier will resume twice weekly service to both Billings, Montana and Pasco (Tri-Cities), Washington per Airline Route. Both routes were dropped in August 2012.
Allegiant today also began new nonstop jet service between Burlington, Vermont and Sanford International Airport (near Orlando) in Florida.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-83 N422NV (msn 49381) prepares to land at Los Angeles International Airport (LAX).
Orange Air (flyorangeair.com) (Sanford, Florida) is a new paper airline that is in the process of obtaining its Air Operators Certificate (AOC). The airline on its website is advertising as “Coming Soon” although no announcement has been made. The would be airline has reportedly taken delivery of the former Spirit Airlines (N804NK) and Belle Air (ZA-ARD) McDonnell Doug;as DC-9-82 (MD-82) as N918AV (msn 49104). N918AV was ferried from Sanford to Opa-locka on January 30 with an Orange Air tail logo according to Skyliner.
Allegiant Air‘s (Las Vegas) business plan is to enter a small market and initially fly twice-weekly to a vacation destination. If it fills up the airplanes, it adds additional days of the week. If the new speculative route does not pan out, the airline quickly drops the airport and the route.
This is the case for both Charlottesville, Virginia and Manhattan, Kansas, both university towns. Allegiant began flying to Charlottesville in November to Sanford, Florida (near Orlando). This route did not work and the ultra low-fare airline is dropping the route on February 23, 2014 according the USA Today and pnj.com.
Manhattan received Allegiant service on November 7, 2013 to Mesa, Arizona (near Phoenix). It too will be dropped on February 23.
Read the full report: CLICK HERE
In other news, Allegiant Air today announced a month-long campaign to spotlight local travelers, commemorating the 15th anniversary of the carrier’s first scheduled service. According to the carrier, “The campaign will celebrate Allegiant’s success and commitment to making leisure travel possible with real stories from loyal customers who have changed the way they travel because of the carrier’s unique brand of low-cost, nonstop service.”
Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N424NV (msn 49421) approaches the runway at the Las Vegas base.
Biman Bangladesh Airlines to now retire the last DC-10 on February 20, will host enthusiast flights from Birmingham
Biman Bangladesh Airlines (Dhaka) has delayed the retirement of its last McDonnell Douglas DC-10. Here is the updated message by the airline:
On, or about February 14, 2014 this three-engine wide-body will be withdrawn from scheduled service and prepped by engineering for its final flights. The last commercial flight will be on Thursday, February 20 when flight BG 1015 takes to the skies at 0830 from Dhaka enroute to Birmingham in the United Kingdom. Operating via Kuwait this flight will arrive in Birmingham the same day at 1620. Priced at only ₤ 600 (plus taxes) for a window seat or ₤ 500 plus taxes, for all the other seats, we have kept the pricing at minimal levels to ensure the flight is accessible to as many as possible.
But this is not its final operation. Due to an overwhelming response from aviation enthusiasts from around the world, we are going to operate scenic flights on the weekend of February 22, 23 and 24 from Birmingham airport. The first flights to go on sale will operate on the Monday, February 24 at 0900, 1200 and 1500 with a block time of an estimated one-hour. If as expected, they sell out quickly we will open up the Sunday, February 23 flights up for the same times of 0900, 1200 and 1500. As these sell out then we will open up the Saturday flights also at the same times – 0900, 1200 and 1500. As with the last commercial flight from Dhaka, we are keeping the prices for these scenic flights at reasonable levels with prices of ₤150 for a window seat and ₤100 for an aisle seat. Please note that for the last commercial flight ever on Monday February 24 @ 1500, prices have been set slightly higher at ₤200/₤150. In order to keep the flights as “special” as possible we are only selling 152 of the 319 seats on the aircraft – therefore all are window or aisle seats.
We want to make sure these flights only sold to aviation enthusiasts and not to third parties or wholesalers, so you must book on-line at www.biman-airlines.com. For the last commercial flight ever, on February 24 @ 1500, we have teamed up with Ian Allan travel in the UK at www.ianallantravel.com/aviationtours/ who will also sell tickets.
Biman Bangladesh is the last passenger operator of the DC-10.
Copyright Photo: Antony J. Best/AirlinersGallery.com. McDonnell Douglas DC-10-30 S2-ACQ (msn 47817) arrives at London’s Heathrow Airport.
Delta Air Lines (Atlanta) yesterday (January 6) as planned and previously announced, operated its last DC-9 flight. The pictured McDonnell Douglas DC-9-51 N773NC (msn 47775) (above) and crew had the honor of operating the very last DC-9 revenue flight as flight DL 2014 between Minneapolis/St. Paul and Atlanta.
With the cold temperatures in both MSP and ATL there was not the traditional water cannon salute.
N773NC was originally delivered to North Central Airlines on October 26, 1978. With the merger with Southern Airways it became Republic Airlines on July 1, 1979. With the Republic merger into Northwest Airlines it took on the red tail on October 1, 1986. Finally it joined the Delta fleet on October 29, 2008 with the Delta-Northwest merger.
Delta operated 13 DC-9-51s in January up to the last flight operated by N773NC. Five DC-9-51s were retired in 2013, six in 2012 and 10 in 2011 according to Airliners.net. One DC-9-51 will be reserved for a museum. Delta is reportedly holding on to two DC-9-51s as spare aircraft for a few days while the newer Boeing 717s replace the DC-9-51s. The other DC-9-51 will end up in the desert where they will be broken up for the parts and the recyclable metal.
Read the full story from the Associated Press: CLICK HERE
Read the full story from Time: CLICK HERE
In other news, Delta is expanding the number of routes served by the new Boeing 717. The airline is introducing the 717 from Atlanta to Augusta (April 1), Chicago (Midway) (April 1), Dallas (Love Field) (October 13), Fayetteville (April 1) and Houston (Bush Intercontinental) (April 1) per Airline Route.
Top Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-51 N773NC (msn 47775) faithfully served four airlines right up to the last flight. N773NC arrives at MSP.
Bottom Copyright Photo: Tony Storck/AirlinersGallery.com. The Boeing 717 started operating to Baltimore/Washington (BWI) yesterday (January 6) with the DC-9-51 retirements. Delta painted the first ex-AirTran Airways Boeing 717 in September 2013, namely the pictured N935AT, which is pictured arriving at BWI. Delta is leasing the entire AirTran fleet of 88 Boeing 717s from Southwest Airlines (Dallas). The new type was introduced on September 19, 2013 between the Atlanta hub and Newark. The DL 717s feature 12 seats in First Class, 15 seats in Economy Comfort and 83 seats in Economy. N935AT was originally delivered to TWA as N402TW on April 11, 2000.
Biman Bangladesh Airlines (Dhaka) is currently now planning to operate the last passenger McDonnell Douglas DC-10-30 revenue flight on January 30 on a regular flight between Kuwait City and Dhaka as a stand-by aircraft. This retirement is always subject to change due to operational requirements. Biman currently has two DC-10-30s which are also the last passenger DC-10s operating in the world. The airline is offering a ferry flight to Birmingham and possible scenic flights in the UK in which it will sell seats.
Previously CEO Kevin Steele issued this statement on November 10, 2013:
There has been a lot of interest lately from press, aviation enthusiasts and the general public, on what will be happening with Biman’s last DC-10s, which will be phased out in the coming months with the arrival of new aircraft. These are the last flying passenger DC-10-30 aircraft in the whole world. So I thought I would take this opportunity to brief you with the latest news, which will be updated when further firm news becomes available.
Biman currently has 2 DC-10-30s flying. As their fuel consumption is higher than other aircraft in our fleet, they are used sparingly. One of those DC-10s will come to the end of its economic life on November 10, 2013 and will be scrapped locally. The last DC-10 will continue normal flying until December 7, 2013, the start of the revised schedule for the fog period here in Dhaka. Thereafter, it will only be used as a standby aircraft, in case another aircraft in our fleet become unserviceable for any reason. We will not be scheduling it on any route though.
This last DC-10 will continue as a standby aircraft until sometime in February 2014. The exact date is not known yet, as it is being coordinated with the arrival of our brand new Boeing 777-300 ER aircraft from Boeing. We expect to know the exact date in early January 2014.
The last DC-10 is being donated to a museum in the USA, a fitting end for an aircraft that has served Biman loyally and well over many years. Accordingly, we will then offer for sale, as a last opportunity to travel on a passenger DC-10, anywhere in the world:
a. Seats on a last flight Dhaka to Birmingham (UK). Note this will need a technical stop
b. 2 (or more if demand requires it) one hour ‘scenic tours’ to/from Birmingham
c. We are unsure if the US authorities will give us traffic rights on the Birmingham to USA
sector. If they do, this will also be offered for sale.
d. We are also discussing with the UK Post Office, about the carriage of ‘Last day Covers’
on the last sector Birmingham-USA, for sale at a later date.
Tickets will only be sold via our website, hopefully from early January, so do not buy tickets elsewhere, we want these tickets to go to genuine aviation enthusiasts. If there is a demand for more ‘scenic tour’ flights at Birmingham, we can consider these too.
We hope you will join with us in celebrating the farewell of a loyal, beautiful aircraft, but also to recognize that the time has now come for Biman to equip itself with the very latest in new aircraft and technology.
Copyright Photo: Michael Ing/AirlinersGallery.com. McDonnell Douglas DC-10-30 S2-ACQ (msn 47817) prepares to land in Singapore.
Delta Air Lines (Atlanta) has now officially announced on what we previously reported. The airline today issued this statement on the last Douglas DC-9 flight in the history of the airline.
Delta Air Lines on January 6, 2014 will retire its remaining Douglas DC-9 aircraft following flight DL 2014 scheduled to depart Minneapolis/St. Paul for Atlanta at 4:20 p.m. (CST) (1620), the last scheduled commercial flight of the DC-9 by a major U.S. airline.
“The DC-9 has been a workhorse in our domestic fleet while providing a reliable customer experience,” said Nat Pieper, Delta’s vice president – Fleet Strategy. “The aircraft’s retirement paves the way for newer, more efficient aircraft.”
Since 2008, Delta has removed or retired more than 350 aircraft from its fleet including 50-seat Bombardier CRJ200s; SAAB 340Bs and McDonnell Douglas DC-9s; while adding economically efficient, proven-technology aircraft such as the Boeing 777-200 LR; two-class, 65 and 76-seat regional jets and variants of the 737 and 717, largely on a capacity-neutral basis.
The DC-9 retirement comes just months after Delta began taking delivery of its orders of 88 Boeing 717-200 aircraft and 100 Boeing 737-900 ER aircraft, which began entering service in October and November, respectively. Each aircraft features a First Class cabin and slim-line seats throughout Delta’s Economy Comfort and Economy cabin along with Wi-Fi connectivity and in-seat power ports. Additionally, the Boeing 737-900 ER offers on-demand entertainment throughout the cabin. Delta also recently announced its order for 40 Airbus aircraft including 30 narrowbody A321s, which will begin to be delivered in 2016.
Delta was the launch customer for the original 65-seat version of the DC-9-14 in 1965 as the airline replaced propeller aircraft on high-frequency, short-haul domestic routes. The twin-engine plane was removed from the Delta fleet in 1993, but larger variants reentered service following the merger with Northwest Airlines; those aircraft joined Northwest after it acquired Republic Airlines in 1986. Delta has flown a total of 305 DC-9s since 1965.
To acknowledge the DC-9′s retirement, the last flight has been tagged DL 2014 noting the final year of service, while the preceding flight operating from Detroit to Minneapolis/St. Paul will be flight DL 1965, the aircraft’s initial year of service.
The last DC-9 to be operated by Delta is the pictured DC-9-51 (top). It is unclear at this time which aircraft will be flown on the last historic flight.
Well done Delta for recognizing and honoring your rich history.
Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-51 N787NC (msn 48149) arrives at the MSP hub.
Video: Inside the cockpit of DC-9-51 N774NC:
Delta Air Lines (Atlanta) although not yet officially announced, but published in the schedules, is currently planning to operate the last McDonnell Douglas DC-9-51 on January 6, 2014. An appropriately named flight DL 1965 will operate from Detroit to Minneapolis/St. Paul departing DTW at 3:39 pm (1539) and arriving at MSP at 4:43 (1643) followed by flight DL 2014 which will operate from Minneapolis/St. Paul to Atlanta as the last scheduled flight, departing MSP at 7:20 pm (1920) and arriving at ATL at 8:47 pm (2047) local time. An unspecified DC-9-51 will operate the last flights. Photos of the last flights are welcome.
Delta has been gradually dwindling down the former Northwest Airlines (and North Central Airlines) DC-9-51 fleet with 10 retirements in 2011, six in 2012 and four so far in 2013. According to Airliners.net, 14 were still in service as of November 19, 2013. One of these 14 aircraft will operate the last revenue flight on January 6, 2014. The aircraft will be ferried to the desert and eventually broken up for scrap metal.
This is actually the second Delta retirement of the DC-9. Delta previously retired its last original DC-9-32 on January 1, 1993. With the merger of Northwest Airlines on October 29, 2008, the DC-9 type was re-introduced back in the Delta fleet under the Delta name.
Delta Air Lines took delivery of its first 65-seat Douglas DC-9-14 (N3304L) (see N3314L below) on September 18, 1965. The new type entered revenue service on November 29, 1965 as flight DL 791 on the Atlanta-Memphis-Kansas City route.
177 total DC-9s were operated. Delta in its history operated the following DC-9 types:
1 DC-9-15 (leased from Jet International)
Information from the Delta Museum:
Top Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-51 N773NC (msn 47775) completes its final approach into Minneapolis-St. Paul International Airport.
Bottom Copyright Photo: Bruce Drum/AirlinersGallery.com. Douglas DC-9-14 N3314L sits at the old Atlanta maintenance base on January 27, 1970. The original delivery color scheme of the DC-9-14s included this forward-pointing widget which was later changed to the standard upright widget.
Allegiant Air (Las Vegas) will add new seasonal, nonstop jet service between Portsmouth and Punta Gorda Airport beginning on February 12, 2014. The new flights will operate twice weekly between Portsmouth International Airport at Pease (PSM) and Punta Gorda Airport (PGD).
Copyright Photo: Ton Jochems/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N422NV (msn 49381) lands in Las Vegas.
SAS operates its last McDonnell Douglas DC-9-82 (MD-82) flight, ending a long relationship with Douglas airplanes
Scandinavian Airlines-SAS (Stockholm) operated and quietly retired their last McDonnell Douglas DC-9. The last MD-80 was operated on October 26, 2013 on flight SK403 from Stockholm-Arlanda to Copenhagen. This is the first time SAS will be without a Douglas aircraft in its fleet. SAS has operated every Douglas and McDonnell Douglas type since the DC-3 (except the DC-5 and the MD-11).
The last revenue flight (flight SK 403) was operated by McDonnell Douglas DC-9-82 (MD-82) SE-DIR “Nora Viking” (msn 53004) between Stockholm (Arlanda) and Copenhagen on October 25. A special employee-only farewell flight was flown by DC-9-82 (MD-82) LN-RMM (msn 53005) on October 26 over Denmark.
DC-9-82s SE-DIR, OY-KHE (msn 49604) and LN-RMM all operated on the last day of revenue operations (October 25).
One of the aircraft will be donated to the SAS Museum outside of Oslo.
According to a Danish newspaper, the SAS MD-80s operated 3,134,900 flights with the 66 aircraft in the fleet. 2,977,195,000 km were flown since the type was introduced in October 1985.
All of the above information is from Airliners.net.
In other news, SAS recently finalized its Airbus long-haul order. On June 25, 2013, SAS and Airbus signed a Memorandum of Understanding (MOU) for the order of 12 new long haul aircraft.
This month, SAS and Airbus signed the final long haul aircraft order agreement comprising 4 A330-300 Enhanced and 8 A350-900 plus 6 options for A350-900. The Airbus A330 will be delivered 2015/16 and the Airbus A350 will be delivered from 2018.
Copyright Photo: Moritz Riemer/AirlinersGallery.com. DC-9-82 (MD-82) OY-KHE (msn 49604) in the Star Alliance livery arrives at Copenhagen.
UPS (United Parcel Service) (UPS Airlines) (Atlanta) has announced diluted earnings per share of $1.16 for the third quarter of 2013, a 9.4% improvement over adjusted results for the same period last year. Total revenue was $13.5 billion, up 3.4% driven primarily by U.S. e-commerce shipments and strong European export growth.
For the three months ended Sept. 30, 2013, UPS delivered more than one billion packages worldwide, an increase of 4.6% over the prior-year period.
Daily package volume growth was led by International export and U.S. Domestic Ground, up 6.7% and 3.0%, respectively. Customers around the globe continue to seek lower cost solutions as demonstrated by the 11% jump in International deferred export products per day.
Last year, on a reported basis, third quarter diluted earnings per share was $0.48 as a result of an after-tax, non-cash charge of $559 million to restructure pension liabilities for certain employees.
“UPS is continuing to build global capabilities that position the company to meet the evolving supply chain needs of customers,” said Scott Davis, UPS chairman and CEO. “We are making investments in emerging markets, healthcare distribution and our worldwide retail delivery models, ensuring that UPS delivers both the solutions customers require and the returns our shareowners expect.”
For the nine months ended Sept. 30, UPS generated $3.6 billion in free cash flow after capital expenditures of $1.6 billion. The company paid dividends of $1.7 billion, an increase of nearly 9% per share over the prior year, and repurchased 33 million shares for $2.9 billion.
U.S. Domestic Package
U.S. Domestic third quarter operating profit was $1.2 billion, up nearly 16%, and operating margin expanded 140 basis points over the prior year adjusted result, to 14.4%. Revenue increased 5.0% to $8.3 billion. Volume growth, cost reductions due to efficiency gains and safety improvements, as well as the benefit of one additional operating day, contributed to the improvement.
On a reported basis, third quarter 2012 U.S. Domestic operating profit was $129 million and operating margin was 1.6% as a result of the pension restructuring charge.
Total U.S. Domestic revenue per piece was up 1.0%, as higher base rates were mostly offset by lower fuel surcharges, decreased average package weight and changes in both product and customer mix.
Daily package volume was 2.3% higher than the same period last year, driven by e-commerce shipments with growth in both B2C and B2B. Next Day Air volume declined 3.3% due to a contraction in letter shipments.
International revenue increased 2.5% to $3.0 billion on daily package volume improvement of 6.5%. Daily export shipments were 6.7% higher, with European exports up nearly 10%, while growth out of Asia was flat. Non-U.S. Domestic volume was up 6.3%, driven by strong growth across Europe and Canada.
Total operating profit was $417 million, a decline of $32 million on a year-over-year basis, due to a $75 million negative impact from currency and fuel. Operating margin of 13.8%, remains industry leading.
Currency-neutral export revenue per piece declined 5.4%, primarily driven by growth in lower-yielding deferred products. Lower fuel surcharges and changes in trade lane mix also pressured yields.
UPS has expanded its presence and service portfolio in Mexico, helping businesses bring manufacturing closer to U.S. consumers. Recently announced offerings include the industry’s first guaranteed ground service from the U.S., Preferred LCL Ocean service from Asia and expanded retail presence in Northern Mexico.
Supply Chain & Freight
Operating profit improved 7%, to $201 million and operating margin expanded 60 basis points, to 8.9%. Revenue in the segment was down slightly from the prior year period to $2.25 billion, as growth in UPS Freight was offset by declines in the Forwarding business.
The Distribution business improved operating profit and margin despite continued investment in Healthcare infrastructure and technology. Revenue growth in Healthcare and Mail Services was offset by a decline in the High Tech sector.
In Forwarding, both operating profit and margin expanded. Growth in Ocean forwarding and Brokerage, as well as cost management activities, drove the improvement.
UPS Freight LTL revenue climbed 5.5% as a result of improved tonnage and rate increases. Operating margin for the business unit declined slightly, due to higher compensation and benefit expense.
Copyright Photo: Ivan K. Nishimura/AirlinersGallery.com. UPS Airlines’ McDonnell Douglas MD-11 (F) N286UP (msn 48453) taxies at Honolulu.
Allegiant Travel Company (Allegiant Air) (Las Vegas) reported the following financial results for the third quarter 2013, as well as comparisons to prior year equivalents:
|Unaudited||3 months endedSept 30,|
|Total operating revenue (m)||$||228.9||$||216.9||5.5||%|
|Operating income (millions)||$||29.2||$||28.7||1.7||%|
|Net income (millions)||$||17.1||$||16.9||1.0||%|
|Diluted earnings per share||$||0.91||$||0.87||4.6||%|
“We are very proud to report our 43rd consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We are pleased to produce another profitable quarter and be able to return cash to shareholders through our share repurchase program. In addition, I am proud to announce that Andrew Levy has been added to our Board of Directors and will also assume the role of Chief Operating Officer. His proven leadership abilities and extensive operational and financial expertise, as well as a deep understanding of the airline business, will be invaluable in his new role as COO.”
“Finally, we were significantly challenged operationally at the end of September many of our MD-80s were taken out of service due to an evacuation slide issue. Through the tireless efforts of our Team Members, we were able to minimize the disruption to our customers. I am very thankful to all of those individuals who worked extremely hard to put the operation back together in such a short amount of time.”
Notable Company Highlights
- Completed the acquisition of five Airbus A320 aircraft. The company now owns seven A320s
- Repurchased 491,000 shares for $47 million during the third quarter, average purchase price of $95.85 per share
- Announced service from nine existing cities to Punta Gorda (Southwest Florida) to begin in the fourth quarter
- Announced service to 12 new cities with service beginning in the fourth quarter and first quarter
- Announced 29 new routes which will begin operation in the fourth quarter
- Average aircraft in service was flat versus last quarter as we retired three MD-80 aircraft and temporarily grounded two MD-80 aircraft early in the quarter
- Increasing MD-80 operating fleet from 52 at the end of the year to 53 in the first quarter of 2014
Third Quarter 2013 Revenue Performance
- 15th consecutive quarter of year over year increases in total average fare, 4.8 percent higher than a year ago
- Florida TRASM grew by 9.6 percent despite 12.7 percent growth in ASMs
- Same store markets, those which were operated in both the third quarter 2013 and 2012, generated a 5.0 percent increase in TRASM
- Grew scheduled load factor to 90.8 percent despite a 4.2 percent increase in seats per departure
- The September slide interruption resulted in approximately $1 million in refunds given to customers
|Average fare – scheduled service||$86.94||$82.30||5.6||%|
|Average fare – ancillary air-related charges||$38.99||$37.05||5.2||%|
|Average fare – ancillary third party products||$5.06||$5.59||(9.5||)%|
|Average fare – total||$130.99||$124.94||4.8||%|
|Scheduled service passenger revenue per ASM (PRASM) (cents)||8.14||7.89||3.2||%|
|Total scheduled service revenue per ASM (TRASM) (cents)||12.26||11.98||2.3||%|
|Average passengers per departure||150||143||4.9||%|
|Average scheduled service stage length (miles)||932||910||2.4||%|
ASMs = available seat miles
PRASM = scheduled passenger revenue per scheduled available seat mile
TRASM = (scheduled passenger revenue + ancillary air revenue + ancillary third party revenue) per scheduled available seat mile
Third Quarter 2013 Cost Performance
- Fuel expense per ASM declined 3.9 percent primarily due to a 5.8 percent increase in ASMs per gallon versus last year, which more than offset a 1.9 percent increase in average cost per gallon
- Operating expense excluding fuel was negatively impacted by lower aircraft utilization and approximately $2 million in expense attributable to the evacuation slide interruption. The expense associated with the slide event is isolated to September and resulted in higher aircraft lease rentals expense as we contracted with other carriers for sub-service of aircraft to move some of our customers, higher station operations expense due to customer interrupted trip costs, and increased salary and benefits expense due to additional overtime
- Salary and benefits expense per passenger increased 15 percent versus last year primarily due to an increase in the number of full time equivalents to support our growth, higher stock-based compensation expense and the continuation of the higher pay band for pilots which began in November 2012. The current pay band will continue through April 2014 when it will be subject to adjustment based on a trailing 12 month profitability test. Based on our forecasted profitability, we currently expect the pilot pay band to remain unchanged
- Depreciation and amortization expense per passenger increased 8 percent primarily due to a change in estimated MD-80 engine residual values and useful life, and operating a larger contingent of 166 seat MD-80 aircraft
- Other expense per passenger increased 31 percent due to a higher write-down of engine values in our consignment program compared to the prior year, non capitalizable information technology development costs, crew training for our growing Airbus fleet and costs to support a seasonal operating base in Los Angeles
|Operating expense per passenger||$114.54||$108.92||5.2||%|
|Operating expense per passenger, excluding fuel||$63.37||$56.85||11.5||%|
|Operating expense per ASM (CASM) (cents)||10.58||10.29||2.8||%|
|Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)||5.85||5.37||8.9||%|
|Average block hours per aircraft per day||5.1||5.2||(1.9||)%|
*Total system includes scheduled service, fixed-fee contract and non-revenue flying.
Fourth Quarter 2013 Cost Trends
- Salary and benefits expense is expected to increase due to additional staff required to support our growth
- Maintenance and repair expense is expected to be slightly higher than fourth quarter 2012. For the full year, maintenance expense per aircraft per month is expected to be $100 thousand to $105 thousand as previously guided
- Aircraft utilization is expected to decline 1.5%, which will pressure ex fuel unit costs when compared to fourth quarter 2012
- Depreciation and amortization expense is expected to increase as seven A320 aircraft are scheduled to enter service in the fourth quarter. For the full year, depreciation per aircraft per month is expected to be between $92 thousand and $95 thousand, as previously guided
Third Party Products Performance
- Rental car days increased 6.5 percent primarily due to a 18 percent increase in Florida passengers
- Hotel net revenue excluding the effect of an air discount was higher by 39 percent versus last year. The company has phased out offering an air discount which has historically subsidized hotel sales
|Supplemental Ancillary Revenue Information
|Gross ancillary revenue – third party products||$28.7||$28.3||1.4||%|
|Cost of goods sold||($19.6||)||($18.5||)||5.9||%|
|Ancillary revenue – third party products||$8.6||$9.0||(4.4||)%|
|As percent of gross||30.1||%||31.9||%||(1.8)pp|
|As percent of income before taxes||31.3||%||33.6||%||(2.3)pp|
|Ancillary revenue – third party products/scheduled passenger||$5.06||$5.59||(9.5||)%|
|Hotel room nights (thousands)||144.4||163.4||(11.6||)%|
|Rental car days (thousands)||195.3||183.3||6.5||%|
*Includes payment expenses and travel agency commissions.
Balance Sheet Highlights
- Repurchased 491,000 shares for $47 million and have over $43 million in repurchase authority remaining. Year to date, the company has repurchased 880,991 shares at an average price of $85.64 per share
- Issued $48.0 million in debt secured by four Airbus aircraft
- Pre-paid $10.5 million in debt secured by four 757 aircraft
- Spent $84.5 million in capital expenditures in the third quarter, the majority of which was driven by the purchase of five Airbus A320 aircraft
- Closed a $10 million debt financing in October, secured by our new headquarters building acquired earlier this year
|Total Allegiant Travel Company stockholders’ equity||$402.4||$400.5||0.5||%|
|Nine months ended September 30,|
*Unrestricted cash includes investments in marketable securities.
At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.
|Guidance, subject to revision|
|Revenue guidance||October 2013||4Q13|
|Estimated PRASM year-over-year change||5 to 7%||3 to 5%|
|Estimated TRASM year-over-year change||1 to 3%||0.5 to 2.5%|
|Fixed fee and other revenue guidance||4Q13|
|Fixed fee and other revenue (millions)||$3 to $5|
|Departure year-over-year growth||(4) to 0%||8 to 12%|
|ASM year-over-year growth||4 to 8%||10 to 14%||8 to 10%|
|Departure year-over-year growth||2 to 6%||8 to 12%|
|ASM year-over-year growth||8 to 12%||10 to 14%||13 to 15%|
|CASM ex fuel – year-over-year change||4.5 to 6.5%||4 to 5%|
|Capital expenditures (millions)||$170 to $180|
CASM ex fuel – cost per available seat mile excluding fuel expense
|Aircraft fleet plan by end of period|
|MD-80 (non 166*)||1||-|
*166 refers to MD-80s that have been converted to 166 seat aircraft, non 166 refers to those aircraft that will not be converted
Aircraft listed in table above include only in service aircraft
In other news, the company announced new, nonstop jet service from Cincinnati-Northern Kentucky International Airport to Orlando-Sanford International Airport starting on February 12, 2014 and Punta Gorda Airport beginning on February 14, 2014.
This announcement marks the 100th U.S. city served by Allegiant’s low-cost, nonstop service to popular vacation destinations, more than any other low-cost carrier in the U.S.
Copyright Photo: Tony Storck/AirlinersGallery.com. Allegiant Air’s McDonnell Douglas DC-9-82 (MD-82) N408NV (msn 53246) in the Blue Man Group special livery lands at the Las Vegas hub and base. Allegiant moved to Concourse A at LAS on October 15.
Allegiant Air (Las Vegas) yesterday (September 20) grounded upwards of 30 McDonnell Douglas MD-80s (DC-9-80s). The cancellation of flights was due to an inspection of the emergency chutes of its 52 MD-80s.
Allegiant issued this statement:
Allegiant announces it has discovered a compliance issue which will require immediate re-inspection of many slides in its MD-80 fleet. The Company has already begun the re-inspections and expects to complete the process by the end of September. MD-80 aircraft will be placed back in service as soon as possible after the slides pass re-inspection. In the meantime, Allegiant will take as many as 30 MD-80s out of service and delay, reschedule or cancel a number of flights over the next several days.
“We apologize for the disruption to our passengers and ask that they please remain patient as we work to correct the issue, reschedule affected flights and accommodate any passengers impacted,” said Andrew Levy, Allegiant Travel Company President. “Allegiant is committed, above all else, to the safety of our passengers and crew, and we are dedicated to working around-the-clock to ensure that all of our fleet meets the highest standards.”
At this time, it is unknown how long the disruption in flight schedule will last.
The company has secured sub-service on seven aircraft from other carriers to assist in operating its Sunday and Monday flight schedule and expects to have 22 MD-80 aircraft in service by Saturday. Allegiant expects delays and reschedules to continue, but is working around-the-clock to re-accommodate and update passengers.
During a thorough incident review earlier this week, Allegiant maintenance became aware of a discrepancy in its slide maintenance schedule. In 2007, the original manufacturer recommendation for slide maintenance schedule changed from once every three years to once a year for slides older than 15 years. Allegiant discovered that many of the slides had not been inspected within the last year and did not comply with this recommendation. This prompted Allegiant to proactively remove aircraft from service until all slides could be brought into compliance. To inspect and overhaul the slides, the slides must be removed and sent to a regulated inspection and maintenance facility.
Allegiant teams are working to accommodate all affected passengers and will offer the following compensation:
- Flights delayed less than four hours: $100 voucher for future travel
- Flights delayed 4-6 hours: $150 off voucher for future travel
- Flights delayed 6 or more hours: $200 voucher for future travel
- Reschedule flights: Full refund and $200 voucher for future travel
For passengers delayed overnight, hotel accommodations and meals will be provided. For travel and compensation questions, please call Allegiant Customer Care at 702-505-8888
Read the full report from Reuters: CLICK HERE
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Officially designed as a McDonnell Douglas DC-9-83 (MD-83), N417NV (msn 53347) prepares to depart from Long Beach.
Allegiant AIr (Las Vegas) has announced new, nonstop jet service between Concord, North Carolina (near Charlotte) and Sanford, Florida via Orlando-Sanford International Airport, beginning on December 20, 2013. Concord will be the 99th U.S. city served by Allegiant.
The new flights will operate twice weekly between Concord Regional Airport (JQF) and Orlando-Sanford International Airport (SFB) year-round.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) prepares to land at Los Angeles International Airport.
Allegiant Air (Las Vegas) today announced new, nonstop jet service on 18 routes, including 10 cities new to the Allegiant network. Today’s announcement will mark the 99th U.S. city served by Allegiant’s low-cost, nonstop service to popular vacation destinations, more than any other low-cost carrier in the U.S.
Allegiant will now offer service to travelers in the New York City area, providing a low-cost travel alternative to the beaches of Southwest Florida via Long Island MacArthur Airport and Stewart International Airport.
New routes just announced include:
Nonstop Service to Phoenix-Mesa Gateway Airport (AZA) in Mesa, AZ from:
- Fort Wayne, Indiana - begins Oct. 30, 2013 with fares as low as $99* roundtrip
- Manhattan, Kansas - begins Nov. 7, 2013 with fares as low as $99* roundtrip
Nonstop Service to Orlando-Sanford International Airport (SFB) in Sanford, FL from:
- Bismarck, North Dakota - begins Nov. 23, 2013 with fares as low as $99* roundtrip
- Charlottesville, Virginia - begins Nov. 21, 2013 with fares as low as $99* roundtrip
- Clarksburg, West Virginia - begins Nov. 14, 2013 with fares as low as $99* roundtrip
- Concord, North Carolina - begins Dec. 20, 2013 with fares as low as $99* roundtrip
- Oklahoma City, Oklahoma - begins Nov. 14, 2013 with fares as low as $99* roundtrip
- Portsmouth, New Hampshire - begins Oct. 25, 2013 with fares as low as $99* roundtrip
- Springfield, Illinois - begins Nov. 22, 2013 with fares as low as $99* roundtrip
- St. Cloud, Minnesota - begins Dec. 18, 2013 with fares as low as $99* roundtrip
- Tulsa, Oklahoma - begins Oct. 25, 2013 with fares as low as $99* roundtrip
Nonstop Service to St. Pete-Clearwater International Airport (PIE), FL from:
- Columbus, Ohio - begins Nov. 23, 2013 with fares as low as $99* roundtrip
- Elmira, New York - begins Nov. 1, 2013 with fares as low as $99* roundtrip
- Fargo, North Dakota - begins Nov. 23, 2013 with fares as low as $99* roundtrip
- Sioux Falls, South Dakota - begins Nov. 1, 2013 with fares as low as $99* roundtrip
- Stewart, New York - begins Oct. 31, 2013 with fares as low as $99* roundtrip
- Syracuse, New York - begins Nov. 7, 2013 with fares as low as $99* roundtrip
Nonstop Service to Punta Gorda Airport (PGD) in Punta Gorda, FL from:
- Islip, New York - begins Dec. 20, 2013 with fares as low as $99* roundtrip
Copyright Photo: Brian McDonough/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N406NV (msn 49900) completes its final approach into Baltimore/Washington.
Finnair (Helsinki) added its first long-haul international route on May 15, 1968 from Helsinki to New York (JFK) via stops in Copenhagen and Amsterdam. The new route was opened with new Douglas DC-8-62CFs, the first having arrived in Helsinki on February 8, 1968.
Tomi Tervo on the Finnair Blog looks back at this pioneering route for the carrier:
- by Tomi Tervo
You always get that extra little buzz when it says ‘AY 005’ on the flight preparation papers. One long-haul flight out of many, but for us it’s the oldest and most traditional one. Finnair’s first long-haul destination was New York, and the route ran via Copenhagen and Amsterdam on a DC-8 aircraft. Pilots, at least, remember Charles Lindbergh crossing the Atlantic 86 years ago as a milepost in aviation history. For the pilot, crossing the Atlantic no longer means bearings twirled with a plotter as messy lines on a route map, or rough navigation with tops and hyperbolae of positions, cigarette stubs in the ashtray next to three weatherworn aviator hats. Nowadays, the route is operated with an Airbus 330, with modern equipment to enable a safe crossing of the ocean with two pilots, without navigators or aviation engineers. However, there still is something special about it from the viewpoint of the pilot.
The route to New York isn’t run of the mill. The flight planners choose the route according to favourable large air currents. Sometimes we fly from the south from above Northern Scotland. This time the route runs from above Iceland and over Greenland. Unlike on the continent, when flying above the ocean we are off the radar and beyond the reach of air traffic control’s monitoring. In addition, there are no radio transmitters in the middle of the ocean so there is no undisturbed, continuous speech connection to air traffic control. The third thing to pay attention to is the shortage of alternate airports. The pilots should always have their eye on the nearest alternate airport along the route that is located no less than two (sometimes three) hours away from the plane. On this flight, the alternate airports are Keflavik and Goose Bay. The Greenland terrain is high and mountainous. When flying above it, the pilots revise the special procedures in case a malfunction is detected in one of the engines or pressurisation and altitude has to be decreased.
Even when above the ocean, the navigation is done normally using GPS (i.e. satellite navigation). However, the waypoints are latitude-longitude coordinates, unlike anywhere else, and there are no earth stations or beacons for a backup. Instead of the magnetic north, the direction reference is the fixed geometric location of the North Pole. ‘Finnair five, cleared to New York via 65N000W, 66N010W, 67N020W….’ reads the air traffic controller for us close to the western coast of Norway. As there is no radar monitoring by air traffic control, the spacing out between the aircrafts is based on following the provided route clearances and speeds with pinpoint accuracy. After receiving the clearance, both pilots carefully cross-check the directions and nautical miles, and that they tally with the aircraft’s navigation equipment. After that, it’s ‘Have a good flight!’ Bit by bit, the voice of the air traffic controller fades beyond the reach of the VHF radios. A little bit of Charles Lindbergh in us starts to stir.
Over the Atlantic, there is a text-based messaging system with satellite connection to air traffic control. But the system is quite new and not entirely without its problems. That is why the progress of the planes is still tracked by radio operators using almost one hundred-year-old HF radio technology. The HF signal bounces between the ocean and the layers of the atmosphere far beyond the horizon, and its range is in theory thousands of miles. But at the same time, the connection is prone to the changes in the day and the sunspot rhythm. There are a lot of noise, scratching sounds and breaks in the connection. ‘Iceland radio, Iceland radio, Finnair 5, position 65N030W at 1810, request SELCAL on DM-BF…’
‘Finnair 5, on boundary…ccchhccccssshhhh… Gander on frequency… eight.. cchhcssh.. niner one….’
(You can listen to the HF radio communications live from this link. Can you make out what they’re saying?)
A new continent. The east coast of Canada, Newfoundland and the vast wilderness. The feeling of already reaching your destination when there are still around three hours to go. Moncton, Bangor, Boston. More and more planes start to circle the skies when approaching New York. We often move in on the John F. Kennedy Airport above the beautiful capes and islands of Long Island. The airport itself is one of the most intense in the whole wide world. As the silhouette of Manhattan looms in the background, the air is swarming with traffic in all directions, at all altitudes. The airport often uses up to three runways simultaneously. There are landings and takeoffs every couple of minutes. Especially during the rush hour, the air traffic controllers read the clearances at the double, with a strong east coast accent. They are tough professionals who expect quality also from the pilots. ‘Finnair five heavy turn right on juliet after landing 757 cross 22R keep rolling join alfa hold short of november charlie monitor groung point niner’, you have to hear and roger your own clearance without delay.
Snowfall and exceptional weather is a chapter of its own. The air traffic in New York may be badly disrupted then. You may be in for a long wait in the air. When the weather forecast is poor, the captain needs to prepare for various scenarios already prior departure by reserving enough fuel. Usually the cockpit receives advance information from Finnair’s New York ground personnel on the available runways, weather and congestion a few hours before landing. We know many of that crew already. One known to all was Maucca Leppälä, who was the Manager of Finnair’s New York ground services for 23 years, but recently retired. Now the operations are led by Ulla-Maija Baker. Greetings to all, it’s always nice to see you.
The hotel transportation runs smoothly in a relaxed atmosphere as the crew discusses what happened on the flight. The blocks of Brooklyn, inner city kids playing basketball and the neon signs of garages and diners blink in the windows. This nation of drivers is returning home on four lanes. Over the radio, I can make out Bruce Springsteen’s guitar, or maybe it’s just my imagination. Arrival at the hotel, saying good evening to all other crew members. Hang up the uniform and put it in the closet. The metropolis quietens down into the early evening as the sun slowly floats down and hides behind the silhouette of New Jersey. That’s us, Charles and I. A brief moment when the silver wings on the uniform’s jacket seem to shine a little brighter than usual.
Top Copyright Photo: Christian Volpati/AirlinersGallery.com (all others by Finnair). McDonnell Douglas DC-8-62CF OH-LFY (msn 46130) sits on the tarmac at Paris (CDG) in the original markings.
Allegiant Air (Las Vegas) has announced today new, nonstop jet service to Southwest Florida via Punta Gorda Airport (PGD) from eight destinations, beginning on October 30.
Allentown/Bethlehem/Easton, PA - begins October 31, 2013 with fares as low as $99.99 each way
Asheville, NC - begins November 2, 2013 with fares as low as $69.99 each way
Bangor, Maine - begins October 30, 2013 with fares as low as $124.99 each way
Cedar Rapids, Iowa - begins December 18, 2013 with fares as low as $99.99 each way
Des Moines, Iowa - begins December 19, 2013 with fares as low as $119.99 each way
Moline/Quad Cities, Illinois - begins November 1, 2013 with fares as low as $99.99 each way
Springfield/Branson, Moissouri - begins October 31, 2013 with fares as low as $89.99 each way
Youngstown, Ohio - begins October 30, 2013 with fares as low as $89.99 each way
The expansion of routes into Punta Gorda will result in two additional McDonnell Douglas DC-9-80 (MD-80) series aircraft based at Punta Gorda Airport.
Additionally the low-fare airline announced new, nonstop, seasonal jet service from Montrose to Los Angeles, California and reintroduction of service to Mesa, Arizona (near Phoenix) beginning December 21, 2013.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N423NV (msn 53008) departs from Los Angeles International Airport.
Allegiant Travel Company (Allegiant Air) (Las Vegas) reported a net income of $25.8 million in the second quarter, up 2.3 percent from the same quarter a year ago. This represents the 42nd consecutive profitable quarter.
Read the full report: CLICK HERE
Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N879GA (msn 53486) approaches the Las Vegas base for landing dressed in the old 2003 livery.
Allegiant Air (Las Vegas) has announced new nonstop jet service between Austin and Las Vegas beginning on October 31.
The new flights will operate four times each week between Austin-Bergstrom International Airport (AUS) and McCarran International Airport (LAS).
In addition, the company will also start twice-weekly service between Reno and Oakland on August 30.
Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N876GA (msn 53469) prepares to land at the Las Vegas base.
Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Provo Municipal Airport (PVU) and Los Angeles International Airport (LAX) beginning on September 26, 2013.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N423NV (msn 53008) departs from Los Angeles International Airport.
Allegiant Air (Las Vegas) has filed an application with the U.S. Department of Transportation (DOT) to operate twice-weekly flights from Las Vegas to Hermosillo and San Jose del Cabo in Mexico. Flights, if approved, would start around June 1, 2014 according to this report by Bloomberg Businessweek.
Read the full report: CLICK HERE
USA Today has joined the growing list of media publications now praising the small city strategy of Allegiant Air which they have been flying for years.
Read their take on the carrier: CLICK HERE
Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) prepares to land at the Las Vegas home.
Allegiant Air (Las Vegas) is under the financial analysis of the Wall Street Journal in a special detailed article by Jack Nicas that explores why this fast-growing airline is the most profitable airline in the United States. This low-fare airline, which breaks most of the industry “rules”, has been off the radar screens of most of the mainstream media for a long time, except in the smaller cities where a new Allegiant route to Las Vegas, Arizona, California, Hawaii or Florida grabs local headlines. Allegiant has the “lowest costs, fullest planes and highest margins” in the United States according to this article. The secret formula, as we have detailed, is flying mostly older planes that others no longer want from cities that are too small for the others to care about to exciting vacation destinations on a limited number of peak traffic days. Allegiant Air also makes a lot of ancillary revenue from its travel packages, taking a page out of the Ryanair playbook. Allegiant aims to be the total travel package airline for the traveller. The business plan is working well.
Now Allegiant is planning to expand in Mexico. This article details the growth and its expansion plans.
Read the full article: CLICK HERE
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Most airlines cannot get rid of these older, fuel-guzzling McDonnell Douglas MD-80s fast enough. Not Allegiant, they love the type and only fly their aircraft when they can make money. During mid-week, when most passengers are already at their holiday destinations, Allegiant parks most of its inefficient, fuel-guzzling fleet. Allegiant only flies when it can make money. Departing on a weekend, former SAS McDonnell Douglas DC-9-83 (MD-83) departs from Los Angeles International Airport.
Video: Allegiant Air TV commercial:
Finnair (Helsinki) this year is celebrating 90 years of aviation excellence.
- In October 2012, Finnair announced their collaboration with popularFinnish textile and interior design company Marimekko.
- For the next three years, all Finnair aircrafts will feature Marimekko textiles and tableware.
- The collection, featuring Marimekko’s signature patterns, will also adhere to Finnair’s sustainable standards to reduce aircraft weight and fuel consumption.
- Michelin-starred Pekka Terava specializes in classic Nordic flavors and innovative Tomi Bjorck will bring his Asian-infused cuisine to the skies.
- How about a sample menu? Reindeer fillet with mushroom puree, oven baked potatoes and organic barley and butternut squash yellow curry. Yum!
- Beginning June 2013, Finnair will begin operating direct flights from Helsinki to popular destinations including Xian (China), Hanoi (Vietnam), Tel Aviv (Israel), Antalya (Turkey) and Palma (Majorca).
- Now travelers can choose to check-in to their flights with Facebook by linking their profiles with the airline seating maps.
- This March, Finnair also launched a two-month trial of Windows 8-powered HP ElitePad 900 tablets on select aircrafts, a new chapter in wireless in-flight entertainment.
- Every month this year Finnair will be posting a video to their Youtube Channel to celebrate 90 years.
Top Copyright Photo: Stephen Tornblom. Historic Photo (click on the photos for the full-size view): Finnair add its first McDonnell Douglas DC-10-30, the pictured OH-LHA, on January 27, 1975.
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.
- 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.
Route Map: How the Newark Hub has grown (click on the map for the full-size view):
Air Transport Services Group, Inc. (ATSG) (Wilmington, OH), the parent of ABX Air (Wilmington, OH) and ATI-Air Transport International (Little Rock and Wilmington, OH) reported consolidated financial results for the quarter ended March 31, 2013.
“We made a major investment in our combi business with the U.S. military, placed more of our Boeing 767 and 757 freighters with DHL, and completed the merger of two of our airlines during the first quarter,” said Joe Hete, President and Chief Executive Officer of ATSG. “The results were significant increases in our net income and in our Adjusted EBITDA, compared with the year-earlier quarter. Our baseline business remains solid, and we are moving quickly to capture the rest of the $5 to $6 million in merger synergies we projected a few months ago.”
For the first quarter of 2013, compared with first quarter 2012:
- Revenues were $143.3 million, a decrease of 1.5%.
- Total operating expenses were $126.9 million, down 3.7%, including a $3.8 million reduction in salaries, wages and benefits expense due in large part to reductions in airline related costs prior to the merger of Air Transport International and Capital Cargo International Airlines in March 2013.
- Pre-tax income was $13.6 million, an increase of 26.5%.
- Net earnings from continuing operations increased 27.6% to $8.5 million, or $0.13 per fully diluted share. Net earnings include a non-cash federal income tax provision. The company does not expect to pay significant federal income taxes until 2015.
- First-quarter Adjusted EBITDA was $37.3 million, a 9.5% increase from $34.1 million in the same period of the prior year. This non-GAAP financial measure is defined and reconciled to comparable GAAP results in a table at the end of this release.
- Capital expenditures totaled $59.4 million for the quarter, including the purchase of two 757-200 combi aircraft.
CAM (Aircraft Leasing)
|($ in thousands)||2013||2012||% Chg.|
- On March 31, 2013, ATSG owned 47 aircraft in serviceable condition – 20 leased to external customers and 27 leased to ATSG affiliate airlines.
- The in-service fleet consisted of forty-one 767 freighters, three 757 freighters and three DC-8 combis. A table reflecting aircraft in service is included at the end of this release.
- On March 31, 2012, CAM owned 51 in-service aircraft, including thirty-nine 767s, three 757s, six DC-8s (two freighters, four combis) and three 727 freighters. All of the 727 and DC-8 freighters, one DC-8 combi and one 767 passenger aircraft have since been removed from service.
- Three other aircraft – two 767-300s and one 757-200 – were undergoing passenger-to-freighter conversion as of March 31, 2013.
- Four 757-200 combi aircraft, including one modified in 2012, one purchased in December 2012 and two purchased in January 2013, are completing certification requirements. They will enter service for the U.S. military as replacements for the three remaining DC-8 combis starting later this quarter.
|ACMI Services||First Quarter|
|($ in thousands)||2013||2012||% Chg.|
|Total ACMI Services Revenues||113,051||113,195||(0.1)|
- Signed agreements with DHL in January for four additional freighters, including one 757 and three 767s, to replace the 727 freighters the company operated in DHL’s U.S. domestic network.
- Extended agreements for three 767s operating in DHL’s network in the Mideast.
- Airline-related headcount in the first quarter decreased approximately 26% compared with the beginning of 2012, principally as a result of combining ATI and CCIA operations prior to their merger in March.
- Four 767 freighters leased from CAM were underutilized during the quarter.
|Other Activities||First Quarter|
|($ in thousands)||2013||2012||% Chg.|
- Improved first quarter pre-tax earnings were driven by greater efficiencies and higher volumes at the U.S. Postal Service facilities we operate.
Copyright Photo: Tony Storck. The three remaining McDonnell Douglas DC-8s in service have been delayed in their retirements until later this year as newer aircraft come on line. A fine study of DC-8-62 (F) N41CX (msn 46129) arriving at Baltimore/Washington.
Avient Limited (Avient Aviation) (Harare) was placed into administration (bankruptcy) on April 5, 2013. James Tickell and Carl Faulds at Portland Business & Financial Solutions were appointed joint administrators.
The administrators have selected new entity AV Cargo Airlines Limited which will operate three McDonnell Douglas MD-11F freighters.
Copyright Photo: Rolf Wallner. Avient Aviation’s McDonnell Douglas MD-11F Z-BVT (msn 48410) is pictured at Zurich before it was grounded.
Bottom Copyright Photo: AV Cargo Airlines.
Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Bellingham International Airport (BLI) and Reno-Tahoe International Airport (RNO) beginning on June 6, 2013.
In other news, the company has announced it has now served over four million total travelers at St. Pete-Clearwater International Airport (PIE) since the first flight took off on November 16, 2006 en route to Allentown, PA. Since that time, the company has grown its presence at the airport, now serving 25 cities with nonstop flights into St. Pete-Clearwater International, as well as basing six aircraft at the airport and employing pilots, flight attendants and mechanics.
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N873GA (msn 49658) touches down at Las Vegas.
Delta Air Lines (Atlanta) will outfit its fleet of 182 MD-88 and MD-90 aircraft as well as several flight simulators with standardized, state-of-the-art glass cockpits and GPS navigation that will improve efficiency, reduce environmental impact and position the airline to take advantage of procedural improvements outlined in the Federal Aviation Administration’s (FAA) Next Generation Air Transportation System.
The enhanced avionics suite, developed by Innovative Solutions & Support, Inc. (ISSC), will allow the aircraft to fly shorter flight paths and take advantage of continuous-descent, Required Navigation Performance (RNAV) approaches to reduce fuel consumption, carbon emissions and noise levels — a primary objective of NextGen. The addition of GPS capabilities as well as the incorporation of Data Link and ADS-B will allow pilots to fly safer as the three systems aid flight crews in identifying nearby air traffic, weather and terrain on flat panel displays in the cockpit.
Due to the lighter weight of the new equipment, Delta will see an immediate improvement in fuel economy while long-lasting benefits from the new flight decks include reductions in CO2 emissions by 80 million pounds annually and a 50 percent decrease in the aircraft noise footprint once NextGen procedures are fully implemented. The standardized flight decks will improve situational awareness for flight crews and are expected to increase operational flexibility, simplify maintenance and improve dispatch and on-time reliability.
“In addition to deploying technology enhancements, Delta continues to work closely with the FAA as it advances NextGen procedures — many of which are being developed at key hub airports,” said Steve Dickson, Delta’s senior vice president-Flight Operations. “Delta continues to invest in NextGen and looks forward to the FAA’s continued progress in systemwide implementation of these improvements, especially at these key hubs, which promise to deliver real savings as well as safety and efficiency enhancements.
Installation of the enhanced flight deck technology across the MD-88 and MD-90 fleet is slated to begin in early 2014 and will be completed by IS&S technicians at Delta TechOps facilities. The process is expected to take approximately two years.
Delta continues to enhance technology across its fleet — including updates to nearly all Airbus and Boeing aircraft — aimed at taking advantage of the performance and efficiency improvements that will be realized once the FAA fully implements the NextGen system.
Significant reductions in environmental impact, both in noise and emissions, as a result of these improvements, are part of Delta’s continued social responsibility efforts. The airline has improved overall fuel-efficiency by an average of 1.7 percent from 2009 to 2012, exceeding goals set by the International Air Transportation Association. Since 2005, Delta has reduced its annual aircraft greenhouse gas emissions by 8.4 million metric tons, an 18.5 percent reduction.
Copyright Photo: Brian McDonough. McDonnell Douglas MD-90-30 N903DA (msn 53383) arrives at Baltimore/Washington International Thurgood Marshall Airport.
Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Bill and Hillary Clinton National Airport in Little Rock, Arkansas (LIT) and Orlando Sanford International Airport (SFB) beginning on June 6, 2013.
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N422NV (msn 49381) completes its final approach into Los Angeles International Airport.
FedEx Express (Memphis) has safely delivered two giant pandas from China to the Toronto Zoo following months of preparations and public anticipation.
The giant pandas, breeding pair Er Shun (female) and Da Mao (male), made the journey from Chengdu, China, to the FedEx Express Canadian Hub at Toronto Pearson International Airport, aboard a specially branded MD-11 aircraft donated by FedEx.
The pandas arrived at 10:47 a.m. EDT (March 25) after an 18 hour flight. FedEx Express, the Toronto Zoo, and the Chengdu Research Base of Giant Panda Breeding collaborated extensively to ensure all necessary precautions were taken to provide a safe and comfortable flight for the pandas. Animal care experts were granted special flight privileges to accompany the pandas onboard the aircraft.
Prime Minister Stephen Harper was airside to officially sign for Canada’s receipt of the giant pandas on a FedEx PowerPad handed to him by Lisa Lisson, president of FedEx Express Canada.
“Today is significant for Canadians as it marks an important symbol of trade and diplomacy between our country and China. As the world’s global transportation leader, FedEx understands first-hand the opportunity and potential that comes with strengthened relationships and improved global connectivity—all of which is wrapped into the symbolism of today’s delivery,” said Lisa Lisson, president, FedEx Express Canada. “As excited as we are about facilitating this exchange between Canada and China, I can attest that all our 6,000-strong team of employees, from coast-to-coast, are as eagerly excited about the prospects of a giant panda cub being born on Canadian soil.”
Following the arrival of FedEx Panda Express, Er Shun and Da Mao were transported by two FedEx Express trucks to Toronto Zoo where they will begin a five-year stay before transferring to Calgary. The specially-branded FedEx Express trucks will stay in service throughout the giant pandas’ stay in Toronto, delivering 600 to 900 kilograms of fresh bamboo supplies two-to-three times a week, courtesy of the Memphis Zoo.
As announced by Prime Minister Stephen Harper on February 11, 2012, the cooperative conservation agreement with China marked the first time in more than twenty years that a giant panda has been loaned to a Canadian zoo. The agreement also marked the first time the Chinese government has granted a ten-year loan of breeding giant pandas to any international zoo in the world.
Following a brief but mandatory quarantine, the giant pandas will be on view to the public at a newly-constructed, state-of-the-art giant panda exhibit at the Toronto Zoo sometime in mid-May (exact date to determined). The program will allow the Toronto Zoo to contribute to ongoing international efforts to protect and increase the population of the endangered giant pandas through investments in research and conservation efforts. Currently, conservationists estimate that there are just over 2,000 giant pandas left in the wild.
“We are honoured to have giant pandas, Er Shun and Da Mao, arrive at the Toronto Zoo and look forward to the opportunity of contributing to the survival of this beautiful species for generations to come,” said John Tracogna, CEO, Toronto Zoo. “The Toronto Zoo is thrilled to join the small group of countries and highly respected zoo organizations outside of China that have the conservation and research programs, professional expertise, and facilities to provide excellent care for a breeding pair of pandas.”
FedEx Express has successfully transported a number of giant panda pairs, underscoring the company’s commitment to safely and securely transporting even the world’s most precious cargo:
- China to Paris, France (2012)
- China to Edinburgh, Scotland (2011)
- Washington, D.C., and Atlanta, USA, to China (2010)
- China to Memphis, USA (2003)
- China to Washington, D.C., USA (2000)
Copyright Photo: FedEx Express. McDonnell Douglas MD-11F N585FE (msn 48481) had the honor for this historic Panda flight. N585FE touches down at Toronto (Pearson) with the special Panda markings.
Allegiant Air (Las Vegas) has announced new nonstop jet service between Piedmont Triad International Airport (GSO) and Fort Lauderdale-Hollywood International Airport (FLL) beginning on June 6, 2013.
The new flights will operate twice weekly between Piedmont Triad International Airport (GSO) and Fort Lauderdale-Hollywood International Airport (FLL).
Copyright Photo: Brian McDonough. McDonnell Douglas DC-9-83 (MD-83) N876GA (msn 53469) arrives at Fort Lauderdale-Hollywood International Airport.
Allegiant Air (Las Vegas) has announced new nonstop jet service between Provo International Airport (PVU) and Oakland International Airport (OAK) beginning on June 7, 2013. The new flights will operate twice weekly between Provo International Airport (PVU) and Oakland International Airport (OAK).
In addition, the company also announced new nonstop jet service between Asheville Regional Airport (AVL) and St. Pete-Clearwater International Airport (PIE) beginning on June 6, 2013. The new flights will operate two times a week between Asheville Regional Airport (AVL) and St. Pete-Clearwater International Airport (PIE).
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) arrives at the Las Vegas hub.
Editor’s “To The Point” Observation: Allegiant’s unique “small cities to holiday markets” business plan initially means adding two roundtrips per week on a new thin route to test the market. Often this new route becomes the biggest flight at this small airport. If the new route does well, Allegiant adds more frequencies until it eventually ramps up to daily service. If not, the route is dropped. This strategy to serve underserved small cities to vacation markets have worked well for the growing carrier.
DAE-Dutch Antilles Express (Curacao) is expanding with new service to the United States. The airline starting on April 15 will add three new routes per Airline Route. This includes Aruba – Miami, Curacao – Orlando and Port-au-Prince – Miami.
Update: The airline suspended operations on August 24, 2013 and declared bankruptcy.
Copyright Photo: Tony Storck. Falcon Air Express operates this McDonnell Douglas DC-9-83 (MD-83) N120MN (msn 53120) for DAE in its colors. N120MN completes its final approach into Miami International Airport.
Japan Airlines-JAL (Tokyo) is planning to operate the last revenue flight of its McDonnell Douglas MD-90-30 on March 30 after 17 years of service at JAS and JAL. The last flight will be from Hiroshima to Tokyo (Haneda) per Aviation Wire. The last flight is sold out.
Read the full report (in Japanese): CLICK HERE
Copyright Photo: Michael B. Ing. McDonnell Douglas MD-90-30 JA8070 (msn 53358) lands at Tokyo (Haneda).
Austral Líneas Aéreas‘ (Buenos Aires) DC-9-81 (MD-81) LV-WFN (msn 48025) was retired from service on February 2, 2012 and flown to Córdoba International Airport-Pajas Blancas on March 16, 2012 for preservation. It was one of the oldest (if not the oldest) DC-9-81 in service.
LV-WFN performed its final flight between Córdoba to Morón Air Force Base in Buenos Aires (MOR) on February 26. The aircraft was donated by Austral Líneas Aéreas to Museo Nacional de Aeronáutica, as it was the first of the DC-9 Super 80 airliner to enter service with Austral in 1981. This plane was retired from service on March 2012 and was preserved waiting for a decision about its fate. Lately the aircraft was being readied before being ferried to Morón as AU 2080, unpressurized and with landing gear deployed.
Copyright Photo: Alvaro Romero. LV-WFN looks forlorn at Córdoba while waiting for its final fate. Now it will be preserved.
Allegiant Travel Company (Allegiant Air) (Las Vegas) is celebrating its 40th consecutive profitable quarter. The company produced a net profit of $14.8 million in the fourth quarter (up from a net profit of $10.8 million in the same quarter a year ago) and a net profit of $78.6 million for 2012 (up from a net profit of $49.4 million in 2011). The travel company specializes in serving small markets with limited service to popular vacation destinations. The company issued the following financial results and details for the fourth quarter 2012 and full year results for 2012:
Allegiant Travel Company reported the following financial results for both the fourth quarter and full year 2012, as well as comparisons to prior year equivalents:
|Total operating revenue (millions)||$222.8||$193.9||14.9%||$908.7||$779.1||16.6%|
|Operating income (millions)||$25.4||$20.2||25.8%||$132.3||$85.4||54.8%|
|Net income (millions)||$14.8||$10.8||36.6%||$78.6||$49.4||59.1%|
|Diluted earnings per share||$0.76||$0.56||35.7%||$4.06||$2.57||58.0%|
“We are very proud to report our 40th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. ”40 consecutive profitable quarters is an outstanding achievement in this industry and we could not do it without the great efforts and contributions of our Team Members. In 2012, we recorded the highest system fuel cost per gallon we have ever paid for a full year. In spite of that, we were able to grow full year earnings per share over 58 percent to the highest ever.”
Notable company quarterly highlights
- Signed purchase agreements to acquire nine Airbus A320 aircraft previously operated by Iberia
- Successfully converted 100 percent of our customer web traffic to our new booking engine in November
- Returned over $38 million to shareholders through a special dividend of $2 per share in December
- Repurchased approximately 55,000 shares for $4 million during the fourth quarter
- As of January 30, 2013, we have converted 47 of an expected 51 MD-80s to 166 seat aircraft
- Began operating 21 new routes during the quarter
- Announced eight new routes starting in the first quarter
- Ranked 14th on the Forbes’ 100 Best Small Companies. We have been listed four years in a row
- Fourth quarter 2012 total average fare was up 4.4 percent versus 2011 and was the highest in the company’s history
- 12th consecutive quarter of year over year increases in total average fare
- Ancillary air-related revenue per passenger has grown sequentially every month since April 2012
|Average fare – scheduled service||$88.59||$91.66||(3.3)%||$88.90||$89.15||(0.3)%|
|Average fare – ancillary air-related charges||$39.89||$31.51||26.6%||$35.72||$31.17||14.6%|
|Average fare – ancillary third party products||$5.19||$4.88||6.4%||$5.48||$5.18||5.8%|
|Average fare – total||$133.67||$128.05||4.4%||$130.10||$125.51||3.7%|
|Scheduled service passenger revenue per ASM (PRASM) (cents)||7.99||8.91||(10.3)%||8.43||8.88||(5.1)%|
|Total scheduled service revenue* per ASM (TRASM) (cents)||12.06||12.45||(3.1)%||12.33||12.50||(1.4)%|
|Average passengers per departure||141||134||5.2%||140||136||2.9%|
|Average scheduled service stage length (miles)||930||904||2.9%||918||901||1.9%|
* Total scheduled service revenue includes scheduled service, ancillary air-related, and ancillary third party revenue.
- Full year 2012 cost per ASM excluding fuel decreased 6.7 percent to 5.3 cents in spite of a five percent decrease in aircraft utilization for the same time period
- Full year 2012 ASMs per gallon increased 6.6 percent to 63.0 versus last year, and improved sequentially 3.6 percent in the fourth quarter 2012 versus the third quarter 2012
- Full year 2012 salaries and benefits expense per passenger decreased 1.7 percent despite a 14.2 percent increase in full time equivalent employees
- Full year 2012 maintenance and repairs expense per passenger decreased 19.6 percent due primarily to a 60 percent decline in engine overhaul expenses. Maintenance expense per aircraft per month was $102,277 in 2012 versus $129,558 in 2011
- Full year 2012 sales and marketing expense per passenger decreased 14.6 percent versus last year, primarily due to the implementation of a discount for customers paying with less expensive forms of payment beginning in the third quarter 2012
|Operating expense per passenger||$118.49||$116.08||2.1%||$111.12||$112.32||(1.1)%|
|Operating expense per passenger, excluding fuel||$63.50||$62.04||2.4%||$56.99||$58.78||(3.0)%|
|Operating expense per ASM (CASM) (cents)||10.50||11.03||(4.8)%||10.37||10.90||(4.9)%|
|Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)||5.63||5.89||(4.4)%||5.32||5.70||(6.7)%|
|Average block hours per aircraft per day||5.3||5.6||(5.4)%||5.7||6.0||(5.0)%|
* Total system includes scheduled service, fixed-fee contract and non-revenue flying.
Third party products performance
- For the fourth quarter 2012, ancillary revenue – third party products per passenger increased 6.4 percent versus last year. This has been our eleventh consecutive quarter of year over year increases.
- For the full year 2012, net revenue from hotels increased about five percent while net revenue from rental cars increased about 33 percent versus 2011
|Supplemental Ancillary Revenue Information
|Gross ancillary revenue – third party products||$24.9||$23.0||8.6%||$119.0||$106.4||11.9%|
|Cost of goods sold||($16.2)||($15.2)||6.1%||($79.0)||($72.0)||9.7%|
|Ancillary revenue – third party products||$8.2||$6.8||20.5%||$36.1||$29.9||20.8%|
|As percent of gross||32.8%||29.6%||3.2pp||30.3%||28.1%||2.2pp|
|As percent of income before taxes||34.9%||36.9%||(2.0)pp||29.0%||37.6%||(8.6)pp|
|Ancillary revenue – third party products/scheduled passenger||$5.19||$4.88||6.4%||$5.48||$5.18||5.8%|
|Hotel room nights (thousands)||137.5||142.6||(3.5)%||690.1||647.7||6.5%|
|Rental car days (thousands)||169.1||113.8||48.6%||763.4||577.7||32.1%|
* Includes payment expenses and travel agency commissions.
Balance sheet highlights
- We currently have $41 million in share repurchase authority
|Total Allegiant Travel Company stockholders’ equity||$400.5||$351.5||14.0%|
|Year ended December 31,|
* Unrestricted cash includes investments in marketable securities.
At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.
|Guidance, subject to revision|
|Revenue guidance||January 2013||1Q13|
|Estimated PRASM year-over-year change||(13) to (11)%||(8) to (6)%|
|Fixed fee and other revenue guidance||1Q13|
|Fixed fee and other revenue (millions)||$4 to $6|
|Departure year-over-year growth||(8) to (4)%||(7) to (3)%|
|ASM year-over-year growth||+12 to 16%||+14 to 18%|
|Departure year-over-year growth||(2) to 2%||0 to 4%|
|ASM year-over-year growth||+15 to 19%||+19 to 23%|
|CASM ex fuel – year-over-year change||+1 to 3%|
|Capital expenditures (millions)||$150 to $160|
CASM ex fuel – cost per available seat mile excluding fuel expense
* Number of aircraft expected to be completed by end of the quarter
2013 aircraft fleet plan by end of quarter
|MD-80 (non 166*)||6||5||1||1|
* 166 refers to MD-80s that are expected to be converted to 166 seat aircraft, non 166 refers to those aircraft that will not be converted
Aircraft listed in table above are considered in service aircraft
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N416NV (msn 49555) is pictured arriving at the Las Vegas main hub.
Finnair (Helsinki) is expanding its cargo network. Finnair is opening a new Brussels base with routes radiating back to Helsinki as well as to New York (JFK) and Chicago (O’Hare) starting in March. UBM Aviation Routes Limited has issued this statement:
Finnair Cargo has successfully used Route Exchange, the online platform for air service development, to open a new Brussels base. In March 2013 Finnair Cargo will initiate weekly flights via its new Brussels hub, connecting the Belgian capital with Finnair’s Helsinki hub as well as New York JFK and new destination Chicago O’Hare. The network expansion follows a partnership during the latter months of 2012 with Routes’ Route Exchange business, part of Routesonline, where Finnair Cargo completed an extensive airport evaluation process to open the new Continental European destination.
This partnership has led directly to the placing of the carrier’s McDonnell Douglas MD-11F aircraft at Brussels Airport.
Read the full statement: CLICK HERE
Copyright Photo: Ton Jochems. The venerable McDonnell Douglas MD-11 freighter will continue to serve the company. The pictured MD-11 OH-LGC (msn 48512) was converted to a freighter for Finnair Cargo but was transferred to Nordic Global Airlines in September 2011. OH-LGC now longer wears these pictured markings. Nordic Global is partially owned by the Finnair Group and operates four MD-11Fs for Finnair Cargo and is likely to operate from the new Brussels base.
Aero Air (Hillsboro, OR) has acquired the Butler Aircraft (Redmond, OR) air tanker operation, including its three aging Douglas DC-7s, located at the Madras Airport, according to the Madras Pioneer. The new air tanker operation is now known as Erickson Aero Tanker. Seven former SAS McDonnell Douglas DC-9-87s (MD-87s) are being acquired and at least four will be converted to air tankers. This is a new use for the versatile DC-9.
The new name comes from co-owner Jack Erickson, who was the founder and former owner of Erickson Air-Crane.
The new company has been awarded the next generation air tanker contract by the U.S. Forest Service according to the article.
Read the full article: CLICK HERE
Copyright Photo: Ton Jochems. Formerly operated by Iberia as EC-FFA and SAS as SE-DMN, this McDonnell Douglas DC-9-87 (MD-87) is getting a new life as an air tanker. The airframe as been re-registered as N293EA and adopted the air tanker fleet number of 103 as seen at Goodyear, AZ.
ATI-Air Transport International (Little Rock and Toledo) is planning to retire its last McDonnell Douglas DC-8 from its operations in early 2013. Parent Air Transport Services Group is acquiring three Boeing 757-200 combi aircraft to replace the remaining four ATI DC-8s in early 2013 via Cargo Aircraft Management (CAM). ATSG issued this statement:
Air Transport Services Group, Inc. said its aircraft leasing subsidiary has reached agreement with National Air Cargo Group, Inc., for the purchase of three Boeing 757-200 aircraft that have been modified for combi (combined passenger and main-deck cargo) service.
ATSG said it anticipates that its subsidiary, Cargo Aircraft Management (CAM), will take delivery of one of the three 757 combi aircraft in December 2012, and the other two in early 2013.
Joe Hete, President and CEO of ATSG, said, “The purchase of these three 757 combis from National, plus the one 757 combi we already own, will complete our commitment to replace our four McDonnell-Douglas DC-8 combis with more modern fuel-efficient aircraft that better meet the requirements of our principal combi customer, the U.S. Military’s United States Transportation Command (USTRANSCOM). We look forward to providing USTRANSCOM with the improved operating performance and lower costs of the 757, as well as its greater passenger capacity. We are proud to be USTRANSCOM’s sole combi operator, serving primarily remote installations around the world that rely on the combi’s unique cargo and passenger transport capabilities.”
The 757 combis have a 34 percent lower fuel burn, ten more passenger seats and the same number of cargo pallet positions as the DC-8 combis they will replace. The combis will be owned by CAM and leased to and operated by ATSG’s airline subsidiary Air Transport International (ATI), under ATI’s contract with USTRANSCOM. Along with the three aircraft, CAM is also purchasing a spare 757-200 engine and some ancillary aircraft equipment from National.
As part of its fleet modernization program, prior to ATI’s latest combi contract award from USTRANSCOM that took effect in October 2012, CAM purchased a Boeing 757-200 for combi conversion. That aircraft is undergoing certification testing for the Federal Aviation Administration, and is due to complete that process and begin USTRANSCOM service early next year. All three of the National combis were designed and modified to meet or exceed the same FAA and USTRANSCOM requirements, including ETOPS (Extended-range Twin-engine Operational Performance Standards) certification essential for service to USTRANSCOM’s combi destinations.
Upon the retirements of the four DC-8 combis, ATSG’s fleet will consist entirely of 757-200, 767-200 and 767-300 aircraft, all of which require only two crew members, and which share a common pilot type rating.
ATSG noted that, as a result of its decision to acquire one of the 757 combis in 2012, it has adjusted its previously disclosed guidance for aircraft-related capital expenditures in 2012 and 2013 to approximately $170 million and $95 million, respectively.
ATSG, through its leasing and airline subsidiaries, is the world’s largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. ATSG’s subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; Capital Cargo International Airlines, Inc.; and Airborne Maintenance and Engineering Services, Inc.
ATI Fleet Overview: CLICK HERE
Copyright Photo: Antony J. Best. McDonnell Douglas DC-8-73 (F) N602AL (msn 45991) arrives at Stansted Airport north of London.
FastJet (FastJet.com) (Dar es Salaam) is reportedly in talks with the interim liquidator about purchasing the assets of grounded 1time Aero (1time.co.za) (Johannesburg). If the talks are successful by the new operator, 1time would be restarted and rebrand as FastJet (South Africa). Eventually the aging 1time McDonnell Douglas fleet would be replaced with Airbus A319s if a deal can be concluded.
Read the full report from AllAfrica: CLICK HERE
Copyright Photo: Michael Stappen. McDonnell Douglas DC-9-83 (MD-83) ZS-OPX (msn 53012) in the “More Nice. Less Price” scheme arrives at the Johannesburg base where the fleet is currently grounded.
Allegiant Air (Las Vegas) is adding new routes from Punta Gorda, Florida with initial twice-weekly service to Plattsburgh, NY (February 23), Rockford, IL (February 14) and Toledo, OH (February 16) per Airline Route.
The company is also launching twice-weekly service from Las Vegas to Reno on February 1 followed by Mesa (near Phoenix) to Provo, UT on February 15 also per Airline Route.
Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N892GA (msn 49826) climbs away from the runway at Los Angeles International Airport.
Scandinavian Airlines-SAS‘ (Stockholm) self-imposed deadline looms today ahead of its board meeting. The airline set the deadline with its unions to accept salary cuts up to 17 percent and job cuts from 15,000 to 9,000. So far the unions have not agreed to these drastic cuts according to this update by Reuters. SAS says it needs these cost reductions in order to compete with low-fare carriers such as Ryanair and Norwegian. Norwegian is planning lower-fare Boeing 787 trans-Atlantic flights for next summer.
The company has issued the following statement:
Intense negotiations have taken place over the past few days. Unfortunately no agreement with any of the unions has yet been reached. Negotiations are continuing, and as previously announced, there must be a solution before the SAS Board of Directors meets later today, Sunday. At the meeting, the Board will decide if the conditions for implementing the plan exist. Full implementation of the plan is a condition for the banks and the major owners to provide access to the necessary funding. Until the Board meets, intensive work will continue to reach an agreement on new collective agreements and thus to secure the future of SAS.
Read the full report: CLICK HERE
Update: On November 19 SAS announced it has obtained agreement from all of its unions for the new plan. The pilots union is subject to a ratification vote. The company issued the following statement on November 19:
8 of 8 new union agreements have been signed November 19 – The Danish Pilot Union Agreement is conditional upon approval by one third of its members.
4Excellence NG is targeting approximately 3 bn SEK of annual improvement from cost reductions and organizational restructuring and approximately 3 bn SEK increased liquidity from asset sales
New 3.5 bn SEK Revolving Credit Facility from Banks and Core Shareholders to secure financial preparedness conditional on final parliamentary approvals and approval of the Danish Pilot Union Agreement from one third of the members of the Danish Pilot Union.
On November 12 the Board of SAS approved the 4 Excellence Next Generation (4XNG) plan to address the issues facing SAS. The 4XNG plan will improve EBT by approximately 3 bn SEK on an annualized basis and improve the overall cost flexibility through:
· New union agreements for personnel
· Centralization of administration functions
· Reduction of compensation to market levels
· New pension terms
· Outsourcing of Call Centers and Ground Handling
SAS also communicated that it has reached a conditional agreement to increase its existing 3.1 bn SEK revolving credit facility to 3.5 bn SEK and extend the term of the facility to March 31, 2015.
This new revolving credit facility is being provided by seven current lenders and SAS’ core shareholders (The Kingdom of Denmark, the Swedish State, the Kingdom of Norway and KAW) on equal terms. The availability of this new revolving credit facility is subject to final documentation, parliamentary approval where required, and it is conditional on signed union agreements that are a central and integral part of the 4XNG plan.
The condition to have 8 union agreements signed have been fulfilled on November 19, 2012, subject to a ballot approval by one third of the members of the Danish Pilot Union to be finalized in the next few days. The availability of the new revolving credit facility is still subject to parliamentary approvals (where required).
Copyright Photo: Paul Denton. The older and less fuel-efficient aircraft, like this McDonnell Douglas DC-9-82 (MD-82) OY-KHM (msn 49914) landing at Geneva, will be phased out. SAS has a diverse fleet and will have to reduce the number of aircraft types it operates besides obtaining these drastic cuts from its personnel.
1time Aero (Johannesburg) ceased all operations and filed for liquidation on November 2, 2012. The low-fare airline cancelled all flights and stranded passengers. The company was unable to secure additional investors and capital.
Using the South African slang word of “1time”, meaning “for real”, 1time Aero (1time.co.za) launched its low-fare operations on February 25, 2004.
The airline issued the following statement:
1time Airline has applied for business liquidation (November 2, 2012) and that all of its operations have been grounded with immediate effect.
The business rescue practitioner has advised that there are no reasonable prospects of survival as a potential financier notified us this afternoon that they are no longer able to invest in our airline. It is therefore with the utmost regret, disappointment and heartfelt disbelief that we have to file for liquidation, which means the end of a dream and an era for all of us.
“I sincerely thank our employees who worked so hard over the years to drive 1time.s business, the travel trade who have been steadfast in their support, and our passengers who carried and maintained 1time during our most difficult and trying financial times, your loyalty is appreciated.
Although 1time ceases to exist, the airline that we’ve built up through blood, sweat, tears and undeniable passion, will live on in the hearts of our passengers and also our competitors, who know that they have lost a formidable and world-class player in the low cost market.”
Blacky Komani (1time Group CEO)
1time’s Business Rescue practitioners will be in contact with creditors and future passengers to finalise all outstanding matters.
Copyright Photo: Rainer Bexten. 1time had some very unique color schemes. In July 2010 1time Aero (1time.co.za) introduced this special “zebra” logojet to celebrate the launching of the new route to Livingston. McDonnell Douglas DC-9-83 (MD-83) ZS-SKB (msn 49966) approaches the Johannesburg hub for landing.