Tag Archives: McDonnell Douglas

EVA Air retires its last McDonnell Douglas MD-11

EVA Air (Taipei) today (March 23) operated its last McDonnell Douglas MD-11 flight. The pictured MD-11F B-16113 (msn 48790) departed Taipei (Taoyuan) at 0840 local time as EVA Air Cargo flight BR 606 to Anchorage. EVA Air was the last operator of the tri-jet in Taiwan. China Airlines and Mandarin Airlines previously also operated the type.

EVA Air logo

EVA Air operated the MD-11 as a passenger aircraft from 1992 through 2003 and was down to just the one MD-11F freighter for today’s retirement.

EVA Air Cargo logo

EVA Air Cargo continues to operate the Boeing 747-400 freighter. EVA Air is considering adding the more efficient Boeing 777F freighter in the future.

In other news, EVA Air on June 19, 2015, EVA Air will be launching new nonstop passenger flights to Houston (Bush Intercontinental) (IAH).

 

Copyright Photo: Manuel Negrerie/AirlinersGallery.com. B-16113 departs from Taipei (Taoyuan).

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FedEx Corporation reports net income of $580 million, up 53%, for the 3Q

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $2.01 per diluted share for the third quarter ended February 28, compared to $1.23 per share last year.

Third Quarter Results

FedEx Corp. reported the following consolidated results for the third quarter:

• Revenue of $11.7 billion, up 4% from $11.3 billion the previous year

• Operating income of $962 million, up 50% from $641 million last year

• Operating margin of 8.2%, up from 5.7% the previous year

• Net income of $580 million, up 53% from last year’s $378 million

Operating results improved due to volume and base yield growth in all three transportation segments, a significant net benefit from fuel, benefits from profit improvement program initiatives, a lower year-over-year weather impact and reduced pension expense. These improvements were partially offset by higher variable incentive compensation accruals.

Share repurchases had a $0.11 year-over-year positive impact on third quarter earnings per diluted share.

Outlook

FedEx projects earnings to be $8.80 to $8.95 per diluted share for fiscal 2015. This outlook assumes continued moderate global economic growth. The capital spending forecast for fiscal 2015 remains $4.2 billion.

“We expect continued revenue and earnings growth this year, driven by ongoing improvements in all of our transportation segments,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Variable incentive compensation accruals will continue to increase as our financial performance improves, and we expect to deliver record fourth quarter and fiscal year earnings.”

FedEx Express Segment

For the third quarter, the FedEx Express segment reported:

• Revenue of $6.66 billion, compared to last year’s $6.67 billion

• Operating income of $384 million, up 129% from $168 million a year ago

• Operating margin of 5.8%, up from 2.5% the previous year

Revenue was essentially flat, as lower fuel surcharges and unfavorable currency exchange rates more than offset volume and base yield growth. U.S. domestic package volume grew by 4%, including 5% growth in overnight box. U.S. domestic revenue per package decreased 2% due to lower fuel surcharges, partially offset by higher base rates. FedEx International Economy volume grew 4%, while FedEx International Priority volume was flat. International export revenue per package decreased 4%, as lower fuel surcharges and unfavorable currency exchange rates were partially offset by favorable service mix and higher rates.

Operating results were higher as increased base revenue, a significant net benefit from fuel and a lower year-over-year weather impact all contributed to the quarter. In addition, the company continued to benefit from profit improvement program initiatives. Partially offsetting these favorable factors were increased variable incentive compensation accruals and aircraft maintenance expenses.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. FedEx Express McDonnell Douglas MD-10-10F (DC-10-10F) N389FE (msn 46623) climbs away from Los Angeles International Airport.

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Martinair to further reduce its freighter fleet by June 2016, the MD-11Fs to be retired

Martinair Cargo (Amsterdam) will scale back its freighter fleet by June 2016 and will continue as a freighter operator for the Air France-KLM-Martinair Cargo group using three Boeing 747-400 ERFs and a Boeing 747-400 BCF. This means the remaining McDonnell Douglas MD-11F freighters will be phased out.

 

KLM has issued this statement:

The company has reached this decision after a thorough deliberation with all the parties involved.

In September 2014, Air France-KLM-Martinair Cargo announced it would be reducing the amount of freighter capacity it needs in its network. Both KLM and Martinair Cargo have discussed the consequences of this decision with the works councils. The decision to scale back the full-freighter fleet has been taken to restore the division’s financial health. The decision will affect more than 330 employees.

Air France-KLM-Martinair Cargo group has decided on a business model which requires less freighter capacity, rather than a model with no freighters at all. Consequently, as an operating carrier within the KLM Group, Martinair Cargo will scale back its fleet and use just one type of aircraft (Boeing 747). This decision affects around 170 ground staff FTEs in the Netherlands, 50 FTEs abroad and 110 cockpit FTEs.

The company will do its utmost to reassign ground staff within the KLM Group using existing instruments, the scope of which may be extended to include voluntary redundancy. This will take place in close consultation with the unions and will only apply to employees working in areas where a staff surplus arises.

A number of voluntary measures have recently been rolled out for pilots at Martinair Cargo. Reassignment options within the group have been explored over the last few months and a number of pilots have taken the step to join Transavia. Recent changes in the financial conditions mean KLM is unable to offer pilots the same salaries they were receiving at Martinair. With KLM’s help, Martinair will continue to make every effort to find solutions for the pilots outside the KLM group. Negotiations between Martinair Cargo and the unions are ongoing and are based on the existing collective labour agreement (CLA). However, the possibility of compulsory redundancies cannot be excluded. Air France-KLM-Martinair Cargo deeply regrets the social consequences of these changes, but the reduction is unavoidable if the cargo business is to be restored to good health.

From 2016, Air France-KLM-Martinair Cargo will continue to operate with a main frame fleet of six Full Freighters (two Boeing 777Fs at Paris Charles De Gaulle and four Boeing 747-400s at Amsterdam Schiphol), supplemented by 15 Boeing 747 Combi’s.

Air France-KLM-Martinair Cargo is convinced that the remaining flexible freighters will continue to provide its clients with a full range of solutions to meet their needs. The freighter network at Schiphol will concentrate on Africa and North, Central and South America and will, of course, continue to serve important markets, such as the flower sector. The company will also continue to invest in Cargo (Express, Pharma, e-commerce).

Cargo remains a core business for the Air France-KLM Group. It generates income of EUR 2.5 billion per year and contributes around EUR 1 billion a year to the passenger network. It goes without saying that pulling out of the cargo business is out of the question.

Copyright Photo: Mark Durbin/AirlinersGallery.com. McDonnell Douglas MD-11 (F) PH-MCR (msn 48617) is pictured at San Francisco International Airport (SFO).

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Reuters and WSJ: N909DL may have had brake problems on landing at LaGuardia

Reuters: Delta Air Lines (Atlanta) McDonnell Douglas MD-88 N909DL (msn 49540) (above) that skidded off runway 13 on March 5 at New York’s LaGuardia Airport in a snowstorm may have had brake problems according to a report by Reuters citing a Wall Street Journal report in return citing unnamed sources close to the NTSB investigation.  N909DL was taken to a hangar at LGA for the investigation. N909DL is a likely insurance write off given its age and the probable cost of repairs.

Read the full report: CLICK HERE

Top Copyright Photo: Bruce Drum/AirlinersGallery.com.

Below Photo: NTSB. NTSB Investigator-in-Charge Dan Bower documenting damaged section of Delta flight 1086 that skidded of the runway at LaGuardia Airport.

NTSB Dan Bower DL 1086

Below Photo: NTSB. NTSB investigators examining the nose gear area of Delta flight 1086 that skidded of the runway at LaGuardia Airport.

Delta 1086 NTSB investigators

 

Allegiant Air launches Omaha – St. Petersburg/Clearwater flights

Allegiant Air (Las Vegas) yesterday (March 5) launched its first flights out of Omaha with new, nonstop jet service to the Tampa Bay area via St. Petersburg-Clearwater International Airport.

The new service operates twice weekly between Eppley Airfield (OMA) and St. Petersburg-Clearwater International Airport (PIE).

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) approaches the runway at Las Vegas McCarran International Airport.

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Allegiant launches Hagerstown-St. Petersburg/Clearwater flights

Allegiant Air (Las Vegas) on February 27 launched new, twice-weekly nonstop jet service between Hagerstown, Maryland and St. Petersburg-Clearwater International Airport (PIE).

Copyright Photo: Eddie Maloney/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N876GA (msn 53469) lands in Las Vegas.

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