Air Canada (Montreal) today reported adjusted net income of $365 million or $1.29 per diluted share in the third quarter of 2013 compared to adjusted net income of $229 million or $0.82 per diluted share in the third quarter of 2012, an increase of 59.4 per cent. Third quarter 2013 EBITDAR amounted to $626 million compared to EBITDAR (excluding benefit plan amendments) of $551 million in the third quarter of 2012, an increase of $75 million . On a GAAP basis (which includes special items), Air Canada’s net income was $299 million or $1.05 per diluted share compared to net income of $359 million or $1.28 per diluted share in the same quarter of the previous year, during which Air Canada recorded a special operating expense reduction of $127 million in Benefit plan amendments relating to changes to the retirement age under one of its collective agreements. No comparable operating expense reduction was recorded in the third quarter of 2013.
“I am extremely pleased to report Air Canada’s best quarterly performance in the Corporation’s history, surpassing previous records for adjusted net income and EBITDAR,” said Calin Rovinescu, President and Chief Executive Officer. “Our operating leverage for the quarter was significant, as we achieved a 59.4 per cent improvement in adjusted net income based on increased total revenues of 4.6 per cent for the quarter. These results underscore the momentum that has been achieved in executing on the foundations of our transformation strategy – sustainable profitability and positioning Air Canada as a stronger national and global competitor.
“In the quarter, we announced a series of significant developments in achieving our priorities: We successfully completed the $1.4 billion refinancing of our 2010 notes, significantly lowering our cost structure, strengthening our balance sheet and improving our credit profile. We completed the transfer of all 15 Embraer 175 aircraft to Sky Regional, our Air Canada Express partner, an important step in Air Canada’s regional diversification strategy and our ongoing cost transformation program. We finished construction of a new state-of-the-art Operations Centre that is designed to significantly improve operational capabilities and efficiencies of our global network. To further develop Toronto Pearson as a truly global hub and even stronger North American gateway, we recently concluded an enhanced cooperation agreement with the Greater Toronto Airports Authority (GTAA). In addition, we implemented an expanded commercial agreement with Air China, to serve additional points in China on a codeshare basis with our Star Alliance partner.
“I am particularly pleased to see the stock market’s endorsement of the strategy that our team has developed. This was reflected in our stock price more than tripling over the past year. Moreover, our commitment as a progressive employer and investment in the well-being of our employees has also been recognized with the recent naming of Air Canada as one of Canada’s Top 100 Employers.
“Looking ahead, we will take delivery of the final three of five new Boeing 777-300ER aircraft by February 2014 , and we are actively preparing to begin integrating the first six of 37 Boeing 787 aircraft into our widebody fleet in 2014. For the summer of 2014, we announced a major European expansion as these new widebody aircraft enter Air Canada’s international fleet allowing for the transfer of current aircraft to Air Canada rougeTM in order to operate in leisure markets on a more cost competitive basis.
“Our operational performance has also shown continued improvement. On-Time Performance (OTP) for the quarter improved over 20 percentage points compared to the previous year, the third consecutive quarter of significant year-over-year gains. I would like to thank our employees for their on-going focus on taking care of our customers while operating a safe and efficient airline. Their professionalism, collaboration and dedication, combined with Air Canada’s award-winning product has once again been recognized by this year’s Ipsos Reid Business Traveller Survey, released in September, that confirmed that Canada’s frequent business travellers recognize Air Canada as their preferred airline by a growing margin – the widest margin versus our domestic competitors since 2008,” concluded Mr. Rovinescu.
Third Quarter Income Statement Highlights
Third quarter 2013 system passenger revenues were $3,177 million , an increase of $148 million or 4.9 per cent over the third quarter of 2012, on a 2.9 per cent growth in traffic and a 2.0 per cent improvement in yield. Passenger revenue per available seat mile (RASM) increased 1.8 per cent from the third quarter of 2012 on the yield growth. Air Canada reported a passenger load factor of 86.2 per cent for the third quarter of 2013, 0.1 percentage points below the third quarter 2012 record load factor. In the premium class cabin, passenger revenues increased $12 million or 2.1 per cent on yield growth of 3.8 per cent as traffic declined 1.7 per cent from the third quarter of 2012.
Operating expenses increased $160 million or 6 per cent from the third quarter of 2012. As a result of changes to the terms of the ACPA collective agreement related to retirement age, which are not subject to regulatory approval, Air Canada recorded an operating expense reduction of $127 million in Benefit plan amendments in the third quarter of 2012 related to the impact of those amendments on pension and other employee benefit liabilities. No such operating expense reduction was recorded in the third quarter of 2013.
Air Canada’s adjusted cost per available seat mile (adjusted CASM), which excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items, decreased 3.4 per cent compared to the third quarter of 2012. The 3.4 per cent reduction in adjusted CASM was in line with the adjusted CASM decrease of 3.0 per cent to 3.5 per cent projected in Air Canada’s news release dated October 3, 2013 .
In the third quarter 2013, Air Canada recorded operating income of $416 million compared to operating income of $423 million in the same quarter in 2012. As discussed above, an operating expense reduction of $127 million was recorded in Benefit plan amendments in the third quarter of 2012 while no such operating expense reduction was recorded in the third quarter of 2013.
Financial and Capital Management Highlights
At September 30, 2013 , unrestricted liquidity (cash, short-term investments and undrawn lines of credit) improved to $2,412 million or 20 per cent of 12-month trailing revenues ( September 30, 2012 – $2,135 million or 18 per cent of 12-month trailing revenues).
Adjusted net debt amounted to $4,104 million at September 30, 2013 , a decrease of $33 million from December 31, 2012. Despite adding US$285 million of debt related to the two Boeing 777-300 ER aircraft delivered in June and August 2013 , Air Canada was able to reduce net debt by maintaining positive cash from operations.
In the third quarter of 2013, negative free cash flow of $249 million declined $96 million from the third quarter of 2012, largely due to the addition of one Boeing 777 aircraft, partly offset by an increase in cash flows from operating activities due to better operating results.
For the 12 months ended September 30, 2013 , return on invested capital (“ROIC”) was 10.8 per cent versus 7.7 per cent at December 31, 2012. Air Canada has targeted achieving an ROIC of 10 to 13 per cent by 2015.
For the fourth quarter of 2013, Air Canada expects its system ASM capacity, as measured by available seat miles (ASMs), to increase in the range of 3.0 to 4.0 per cent when compared to the fourth quarter of 2012.
Air Canada expects its full year 2013 system ASM capacity and domestic ASM capacity to increase in the range of 2.0 to 2.5 per cent when compared to the same periods in 2012 (as opposed to the increase of 1.5 to 2.5 per cent disclosed in Air Canada’s news release dated October 3, 2013 ).
For the fourth quarter of 2013, Air Canada expects adjusted CASM to decrease 2.0 to 3.0 per cent when compared to the fourth quarter of 2012.
For the full year 2013, Air Canada continues to expect adjusted CASM to decrease in the range of 1.5 to 2.0 per cent from the full year 2012, consistent with the revised outlook provided with the October 3, 2013 traffic release.
Air Canada continues to expect its full year 2014 system capacity to increase by 9.0 to 11.0 per cent when compared to the full year 2013. This projected increase in capacity, which is being deployed primarily on international markets, is consistent with the fleet plan discussed in Air Canada’s Third Quarter 2013 MD&A. The projected capacity increase is due to the addition of five high-density Boeing 777-300 ER aircraft (the first two having been delivered in June and August 2013 , respectively, and the remaining three scheduled for delivery between November 2013 and February 2014 ), the scheduled arrival in 2014 of the first six Boeing 787 aircraft, and the planned growth from Air Canada rougeTM.
Air Canada’s outlook assumes Canadian GDP growth of 1.25 to 1.75 per cent for 2013 and Canadian GDP growth of 2.0 to 3.0 per cent for 2014.
Air Canada also expects that the Canadian dollar will trade, on average, at C$1.03 per U.S. dollar for the fourth quarter of 2013 and the full year 2013 and that the price of jet fuel will average 89 cents per litre for the fourth quarter of 2013 and the full year 2013.
The following table summarizes Air Canada’s above-mentioned outlook for the fourth quarter and full year 2013 and related major assumptions:
|Fourth Quarter 2013 versus
Fourth Quarter 2012
|Full Year 2013 versus
Full Year 2012
|Available seat miles (System)||Increase 3.0% to 4.0%||Increase 2.0% to 2.5%|
|Available seat miles (Canada)||n/a||Increase 2.0% to 2.5%|
|Adjusted CASM (1)||Decrease 2.0% to 3.0%||Decrease 1.5% to 2.0%|
|(1) Excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items|
|Major Assumptions -
Fourth Quarter 2013
|Major Assumptions -
Full Year 2013
|Canadian dollar per U.S. dollar||1.03||1.03|
|Jet fuel price – CAD cents per litre||89 cents||89 cents|
|Canadian economy||2013 Annualized Canadian GDP
growth of 1.25% to 1.75%
|Canadian GDP growth of
1.25% to 1.75%
For the full year 2013, Air Canada continues to expect:
- Depreciation, amortization and impairment expense to decrease by $115 million from the full year 2012.
- Employee benefits expense to increase by $70 million from the full year 2012.
- Aircraft maintenance expense to decrease by $40 million from the full year 2012 level, which includes a favourable maintenance return provision adjustment of $32 million in the fourth quarter of 2012.
The following table summarizes the above-mentioned projections for the full year 2013:
|Full Year 2013 versus
Full Year 2012
|Depreciation, amortization and impairment expense||Decrease $115 million|
|Employee benefits expense||Increase $70 million|
|Aircraft maintenance expense||Decrease $40 million|
The outlook provided constitutes forward-looking statements within the meaning of applicable securities laws and is based on a number of additional assumptions and subject to a number of risks. Please see section below entitled “Caution Regarding Forward-Looking Information.”
Below is a description of certain non-GAAP measures used by Air Canada to provide additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under Canadian GAAP and do not have standardized meanings and may not be comparable to similar measures presented by other public companies. Refer to Air Canada’s Third Quarter 2013 MD&A for reconciliation of non-GAAP financial measures.
- Adjusted net income (loss) and adjusted net income (loss) per diluted share are used by Air Canada to assess its performance without the effects of foreign exchange, net financing expense on employee benefits, mark-to-market adjustments on derivatives and other financial instruments recorded at fair value and unusual items.
- EBITDAR is commonly used in the airline industry and is used by Air Canada to assess earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets.
- Adjusted CASM is used by Air Canada to assess the operating performance of its ongoing airline business without the effects of fuel expense, the cost of ground packages at Air Canada Vacations and unusual items, such as impairment charges and benefit plan amendments, as such expenses may distort the analysis of certain business trends and render comparative analyses to other airlines less meaningful.
- Free cash flow is used by Air Canada as an indicator of the financial strength and performance of its business because it shows how much cash is available for such purposes as repaying debt, meeting ongoing financial obligations and reinvesting in Air Canada.
- Adjusted net debt is a key component of the capital managed by Air Canada and provides a measure of the airline’s net indebtedness. Adjusted net debt is calculated as the sum of total long-term debt and finance lease obligations and capitalized operating leases less cash and cash equivalents and short-term investments.
- Return on invested capital is used by Air Canada to assess the efficiency with which it allocates its capital to generate returns. Return is based on Adjusted net income (loss) (as discussed in the section above), excluding interest expense and implicit interest on operating leases. Invested capital includes average long-term debt, average finance lease obligations, the value of capitalized operating leases (calculated by multiplying annualized aircraft rent expense by 7) and the market capitalization of Air Canada’s outstanding shares.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-333 ER C-FRAM (msn 35250) approaches Tokyo (Narita) for landing.
Air France-KLM Group (Air France and KLM Royal Dutch Airlines) (Paris and Amsterdam) with 25 percent of the stock is the key to Alitalia’s (2nd) (Rome) survival. According to this report by Reuters quoting internal sources, the group has stated privately the Alitalia rescue plan and capital infusion “fell short of its requirements, particularly in terms of debt restructuring.”
However, the source added that Alitalia was “of strategic interest” to Air France-KLM.
Meanwhile Willie Walsh of the International Airline Group (British Airways, Iberia and Vueling Airlines) has spoken out against the state aid for Alitalia and has called on the European Commission to stop the Italian government’s efforts to prop-up the failing flag carrier.
Read the full report: CLICK HERE
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alitalia’s Boeing 777-243 ER I-DISU (msn 32858) climbs from the runway at Tokyo (Narita).
Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) welcomed the decision by the U.S. Department of Transportation (DOT) to approve the carriers’ joint venture by granting antitrust immunity on routes between North America and the United Kingdom.
In their filing to the DOT, Delta and Virgin Atlantic noted that nearly 60 percent of the slots at London Heathrow Airport are controlled by British Airways and its joint venture partners. As a result, the carriers dominate air travel between the U.S. and the U.K, including the New York-London market, the most important business market in the world. By combining Virgin Atlantic’s Heathrow slots and U.K. brand strength with Delta’s powerful U.S. network, the joint venture will offer significant competition in the market and benefit consumers on both sides of the Atlantic.
New schedule between New York-JFK and London Heathrow
With the customer at the forefront of their partnership, the airlines unveiled a new schedule for the competitive New York to London travel market designed with business travelers in mind and offering a total of nine daily nonstop flights. Effective March 30, 2014, Delta and Virgin Atlantic will operate a harmonized schedule between New York-JFK and London Heathrow featuring seven daily nonstop services at convenient time slots. The new schedule will include departures every 30 minutes during the early evening peak and then hourly until 22:30 from New York-JFK to London Heathrow and a spread of seven daily flights from London Heathrow to New York-JFK, including two late afternoon and early evening departures. These services will be complemented by two daily nonstop flights between Newark Liberty International Airport and London Heathrow.
Delta and Virgin Atlantic will operate the following New York-JFK-London Heathrow schedule beginning March 30, 2014:
|New York (JFK) – London (LHR)||London (LHR) – New York (JFK)|
|*arrives the following day|
The two airlines will work together to coordinate other schedule and network opportunities. Combined, the airlines will operate a total of 32 peak daily nonstop flights between North America and the U.K. of which 24 flights will operate between London Heathrow and popular U.S. destinations such as Los Angeles, San Francisco, Atlanta and Washington. Business customers will also benefit from a high-quality product: Delta and Virgin Atlantic’s business class uniquely includes forward-facing full flat-bed seats with direct aisle access on every flight. In addition, both airlines will offer a premium economy product on its trans-Atlantic services.
Customers are already seeing improved travel options from the partnership as they are benefiting from codesharing across 104 routes offering seamless connections to 63 destinations across North America and the UK. The partnership also means that members of frequent flyer SkyMiles and Flying Club loyalty programs have more opportunity to earn and use miles/points, while Premium customers have reciprocal access to Delta Sky Club and Virgin Atlantic Clubhouse lounges. In addition, business class passengers receive priority check-in, boarding, baggage handling and additional baggage allowance on all Delta and Virgin Atlantic operated flights worldwide, including those outside of the codeshare agreement.
Delta and Virgin Atlantic will unveil further product enhancements later in the year, appealing to the business customer and improving the travel experience of customers across the trans-Atlantic.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Ex-Northwest Airlines Airbus A330-323X N813NW (msn 799) of Delta approaches the Tokyo (Narita) hub for landing.
Bottom Copyright Photo: Olivier Gregoire/AirlinersGallery.com. Brand new Airbus A330-343X F-WWCG (msn 1341) became G-VWAG on delivery to Virgin Atlantic.
Lufthansa’s transfer of Austrian Airlines employees to cheaper Tyrolean Airways deemed illegal by a Vienna court
Lufthansa Group (Frankfurt) in 2012 orchestrated the transfer of around 2,000 staff members of its Austrian Airlines (Vienna) subsidiary to the cheaper Tyrolean Airways (Innsbruck) subsidiary to reduce overall costs. A Vienna court ruled yesterday (September 2) that the move was illegal and the employees were still employed by Austrian Airlines.
Austrian Airlines stated it would appeal the verdict of the Vienna Labor and Social Affairs Court. The transfer was the heart of the loss-making airline’s restructuring plan and its attempt to return to profitability along with the Lufthansa Group.
Currently Tyrolean Airways is operating all Austrian Airlines-branded aircraft (except one Boeing 777) as Austrian Airlines flights. The one Triple Seven is keeping the Austrian Airlines AOC alive.
Read the full report from Euronews: CLICK HERE
Copyright Photo: Austrian Airlines-branded Boeing 777-2Z9 ER OE-LPA (msn 28698) pictured departing from Tokyo (Narita) is actually being operated Tyrolean Airways-employed crews on the Tyrolean AOC until the Vienna court deemed the crews to be considered Austrian Airlines employees again! What will now happen to the Tyrolean crews who were operating alongside Austrian crews?
Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) have received tentative U.S. Department of Transportation (DOT) (Washington) antitrust immunity for its proposed trans-Atlantic alliance. As part of the deal, Delta is acquiring a 49 percent stake in Virgin Atlantic for $360 million from Singapore Airlines (Singapore).
All other parties will have 14 days to comment on the DOT decision, otherwise it will become final.
Read the full report from Reuters: CLICK HERE
Top Copyright Photo: Brian McDonough/AirlinersGallery.com. Delta’s Boeing 757-232 N650DL (msn 24390) banks on the final turn on the River Approach into Washington (Reagan National).
Have you seen the “new look” AirlinersGallery.com?
Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A340-313 G-VAIR (msn 164) climbs away from Tokyo (Narita) painted in the updated 2010 livery which also includes airline titles on the fuselage underside.
AirAsia Japan (Tokyo-Narita), the failed joint venture between AirAsia (Malaysia) (Kuala Lumpur) and ANA (All Nippon Airways) (Tokyo), will be rebranded as Vanilla Air by its now full parent, ANA, which acquired AirAsia’s shares in the joint venture. Vanilla Air will become the new name in December. In the meantime, AirAsia Japan is cancelling hundreds of flights between September 1 and October 26 (see below).
Read the full story from Channel NewsAsia: CLICK HERE
The current AirAsia Japan aircraft are being returned to AirAsia. AirAsia previously issued this statement about the cancelled joint venture and as a result the following cancelled flights:
1 SEP – 26 OCT 2013 : From/ To Nagoya (Chubu)
|Nagoya (Chubu) → Fukuoka||Fukuoka → Nagoya (Chubu)|
|Flight No.||Departure||Arrival||Flight No.||Departure||Arrival|
|Nagoya (Chubu) → Sapporo (Shin-Chitose)||Sapporo (Shin-Chitose) → Nagoya (Chubu)|
|Flight No.||Departure||Arrival||Flight No.||Departure||Arrival|
|Nagoya (Chubu) → Seoul (Incheon)||Seoul (Incheon) → Nagoya (Chubu)|
|Flight No.||Departure||Flight No.||Flight No.||Departure||Flight No.|
1 OCT – 26 OCT 2013 : Narita=Sapporo (Shin-Chitose) & Narita=Okinawa (Naha)
|Tokyo (Narita) → Sapporo (Shin-Chitose)||Sapporo (Shin-Chitose) → Tokyo (Narita)|
|Flight No.||Departure||Arrival||Frequency||Flight No.||Departure||Arrival||Frequency|
|JW8521||7:10||8:55||Thu, Sat||JW8520||9:20||10:55||Thu, Sat|
|7:15||9:00||Mon, Tue, Wed, Fri, Sun||9:25||11:00||Mon, Tue, Wed, Fri, Sun|
|JW8523||11:25||13:20||Thu, Sat||JW8522||13:45||15:20||Thu, Sat|
|111:30||13:25||Mon, Tue, Wed, Fri, Sun||13:50||15:25||Mon, Tue, Wed, Fri, Sun|
|Tokyo (Narita) → Okinawa (Naha)||Okinawa (Naha) → Tokyo (Narita)|
|Flight No.||Departure||Arrival||Frequency||Flight No.||Departure||Arrival|
|16:00||18:55||Mon, Tue, Wed, Fri, Sun|
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-216 JA02AJ (msn 5200) climbs away from the Tokyo (Narita) base.
Austrian Airlines (Vienna) has introduced a new long-haul cabin product and issued this statement:
As of now all passengers on Austrian’s long-haul flights benefit from the advantages of its new cabin. These advantages include a new level of seating comfort in Economy Class, an advanced board entertainment system offering non-stop entertainment, as well as innovative Business Class seats capable of being transformed into entirely flat beds. A total of 2,538 new seats were installed in the four Boeing 777 and six Boeing 767 airplanes belonging to Austrian’s long-haul fleet. An optimal array of seats ensures undisturbed flights. The Boeing 777’s Business Class provides four of five passengers sitting in a row with direct access to the aisle. This access is enjoyed, in fact, by every Business Class passenger in Austrian’s Boeing 767s. As before Austrian’s passengers are indulged by the prize-winning service and the first class DO and CO-catered fare. The menus provided in Business Class receive their final touches from flying chefs.
The reconfiguration of the cabins has considerably boosted customer satisfaction, which has risen substantial 31 percentage points – among passengers on long-haul flights – since the launch of the new cabin. This result places Austrian Airlines among the peak of the evaluations received by the airlines comprising the world-spanning Star Alliance.
Austrian CCO Karsten Benz states: “We are gratified by the enthusiasm shown by our customers. The significant rise in their satisfaction is proof that our investments of more than €90 million have paid off.”
Top Copyright Photos: Michael B. Ing/AirlinersGallery.com (all others by Austrian Airlines). Boeing 777-2Z9 ER OE-LPC (msn 29313) climbs away from Tokyo (Narita) bound for the Vienna hub.
Delta Air Lines (Atlanta) today reported financial results for the June 2013 quarter. Highlights from the quarter include:
- Delta’s net profit for the June 2013 quarter was $844 million, or $0.98 per diluted share, excluding special items1. This result is a record June quarter profit excluding special items and is a $258 million improvement year-over-year.
- Including $159 million in special items, Delta’s GAAP net income was $685 million, or $0.80 per diluted share.
- The company announced a balanced capital deployment plan, targeted at creating up to $5 billion of value for shareholders by 2017 through further debt reduction and the return of more than $1 billion to shareholders over the next three years by means of $200 million of annual dividends and a $500 million share repurchase program.
- June quarter results include $118 million of profit sharing expense in recognition of Delta employees’ contributions to the company’s financial performance.
- Delta generated $1.3 billion of operating cash flow and $730 million of free cash flow in the June 2013 quarter, and ended the period with adjusted net debt of $10.2 billion.
Delta’s operating revenue declined $25 million in the June 2013 quarter compared to the June 2012 quarter. Traffic increased 0.5 percent on a 0.8 percent increase in capacity.
- Passenger revenue increased 0.7 percent, or $63 million, compared to the prior year period. Passenger unit revenue (PRASM) was flat year over year with a 0.2 percent improvement in yield.
- Cargo revenue decreased 11.4 percent, or $30 million, on declining freight yields.
- Other revenue decreased 5.6 percent, or $58 million, as a result of the decision to discontinue a number of low margin-producing third-party maintenance contracts.
Comparisons of revenue-related statistics are as follows:
2Q13 versus 2Q12
|Passenger Revenue||2Q13 ($M)||Change
Cash from operations during the June 2013 quarter was $1.3 billion, driven by the company’s June quarter profit and the seasonal increase in advanced ticket sales, which was partially offset by $500 million of accelerated pension funding. The company generated $730 million of free cash flow.
Capital expenditures during the June 2013 quarter were $704 million, including $360 million for the acquisition of 49% of Virgin Atlantic and $238 million in fleet investments, including aircraft parts and modifications. During the quarter, Delta’s debt maturities and capital leases were $405 million.
Delta ended the quarter with adjusted net debt of $10.2 billion and the company has now achieved nearly $7 billion in net debt reduction since 2009. This debt reduction strategy produced a $43 million year-over-year reduction in interest expense in the June quarter. As of June 30, 2013, Delta had $5.7 billion in unrestricted liquidity, including $3.9 billion in cash and short-term investments and $1.8 billion in undrawn revolving credit facilities.
Total operating expense in the quarter decreased year-over-year by $805 million driven by the savings from Delta’s structural cost initiatives and lower mark-to-market adjustments on fuel hedges, partially offset by the impact of operational, service and employee investments.
Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was 2.5 percent higher in the June 2013 quarter on a year-over-year basis, driven by the impact of wage increases and operational and service investments. GAAP consolidated CASM decreased 9 percent, driven by lower fuel expense.
Fuel expense for the June quarter declined $710 million year-over-year, or $288 million excluding mark-to-market adjustments, as a result of lower fuel prices and prior year hedge losses. Delta’s average fuel price3 was $3.03 per gallon for the June quarter. For the June quarter, operations at the Trainer refinery produced a $51 million loss ($0.05 cents per gallon impact) driven by the elevated price of the Renewable Identification Numbers (RINs) required under the Environmental Protection Agency’s Renewable Fuel Standard.
Balanced Approach to Capital Deployment
In May, Delta announced a five year financial plan and a balanced capital deployment program aimed at creating up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years. The company’s financial plan focuses on free cash flow generation through a combination of expected earnings improvements and a disciplined approach to capital investment. Over the next five years, Delta plans to reinvest $2.0 – $2.5 billion annually, or approximately 50 percent of its operating cash flow, into improving the company’s fleet, facilities, products and technology.
The resulting free cash flow will be used to return cash to shareholders, further reduce the company’s debt, and opportunistically address longer-term pension funding needs, driving up to $5 billion of value to Delta’s shareholders. Specifically,
- The company expects to achieve an adjusted net debt level of $7 billion by 2017, a $5 billion reduction over 2012. By meeting the $7 billion target, Delta will have reduced its adjusted net debt by $10 billion since 2009, significantly decreasing the company’s balance sheet risk and accreting more than $750 million of interest expense savings for shareowners;
- Delta’s Board of Directors initiated a quarterly dividend and declared a $0.06 per share dividend for shareholders of record as of August 9, 2013. This dividend will be paid on September 10, 2013. In addition, the Board authorized a $500 million share repurchase program, to be completed no later than June 30, 2016. Together, these two programs are designed to return more than $1 billion of capital to shareholders over the next three years;
- The company also plans to make up to $1 billion of incremental contributions to the company’s defined benefit pension plans over the next five years. These contributions would be in addition to the $650 – $700 million annual contribution requirement.
Delta recorded special items totaling a $159 million charge in the June 2013 quarter, including:
- a $125 million charge for mark-to-market adjustments for fuel hedges settling in future periods; and
- a $34 million charge for facilities, fleet and other items, primarily associated with Delta’s domestic fleet restructuring.
Delta recorded special items totaling a $754 million charge in the June 2012 quarter, including:
- a $561 million charge for mark-to-market adjustments on fuel hedges settling in future periods;
- $171 million in severance and related costs associated with voluntary early out programs; and
- a $22 million charge for facilities, fleet and other items.
(1) Note A to the attached Consolidated Statements of Operations provides a reconciliation of non-GAAP financial measures used in this release and provides the reasons management uses those measures.
(2) CASM – Ex: In addition to fuel expense, profit sharing and special items, Delta believes excluding ancillary business costs is helpful to investors because ancillary business costs are not related to the generation of a seat mile. These businesses include aircraft maintenance and staffing services Delta provides to third parties and Delta’s vacation wholesale operations. The amounts excluded were $165 million and $244 million for the June 2013 and 2012 quarters, respectively. The amounts excluded were $350 million and $484 million for the six months ended June 30, 2013 and 2012, respectively. Management believes this methodology provides a more consistent and comparable reflection of Delta’s airline operations.
(3) Average fuel price per gallon: Delta’s June 2013 quarter average fuel price of $3.03 per gallon reflects the consolidated cost per gallon for mainline and regional operations, including contract carrier operations, and includes the impact of fuel hedge contracts with original maturity dates in the June 2013 quarter. On a GAAP basis, fuel price includes $125 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period. The net refinery loss for the quarter was $51 million, or 5 cents per gallon. See Note A for a reconciliation of average fuel price per gallon to the comparable GAAP metric.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-232 LR N702DN (msn 29741) “The Spirit of Atlanta” prepares to land at Tokyo (Narita).
- 2013: positive industry EBIT in the second semester, resulting from an improvement in industrial management
- 2014: break-even operating margin
- 2015: balanced budget
- 2016: balance sheet profit
- Increase the convertible shareholders loan by 55 million euros within December 2013
- Increase the financial resources by 300 million euros in December 2013
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alitalia will concentrate on adding new, higher-yield long-range international routes. Boeing 777-243 ER I-DISA (msn 32855) climbs away from Tokyo (Narita).
Bottom Copyright Photo: Richard Vandervord/AirlinersGallery.com. Air One will be rebranded, possibly as “Smart Carrier”. Air One’s Airbus A320-215 EI-DSK (msn 3328) taxies at the Milan (Malpensa) base in the 1995 color scheme.
Finnair to join up with British Airways and Japan Airlines to coordinate schedules and share revenue to Japan
Finnair (Helsinki) is seeking to join with the British Airways-Japan Airlines joint venture to coordinate schedules and share revenue on European-Japanese flights according to this report by Bloomberg. Combining fares will be the key element of the expanded JV between the Oneworld partners. The carriers currently operate 10 routes between Europe and Japan.
Read the full story: CLICK HERE
In other news, the company issued this statement about being the most punctual international airline (a dig at SAS?) for the past two months:
Finnair has been the most punctual international airline for the past two months, according to travel data provider FlightStats. With 93.83 per cent of flights arriving or departing within 15 minutes of schedule in May and 91.14 per cent in April, Finnair is currently the world’s most reliable international carrier according to the data services firm, which supplies the travel industry and general public with real-time global flight tracking information.
“There are all kinds of factors out of an airline’s control that can cause delays to passengers and loss of revenue, but these rankings highlight the degree to which dedicated employees working in well-defined processes can proactively and positively manage on-time performance,” says Finnair Chief Operating Officer Ville Iho. “I’m very proud of this impressive achievement, both among our own employees and those of our key partners.”
In FlightStats’ rankings for the year 2012, Finnair was runner-up for lowest global cancellation rate and a runner-up for most punctual European airline. The oneworld alliance, of which Finnair is a member, was named the alliance with the best on-time performance.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A330-302X OH-LTR (msn 1067) in the old 2000 livery climbs away from Narita International Airport near Tokyo bound for the Helsinki hub.
AirAsia Japan (Tokyo-Narita) will cease all scheduled services on October 31, 2013. ANA has decided it will not merge the joint venture with Peach Aviation. The airline started operations on August 1, 2012.
All four Airbus A320s will be returned to AirAsia (Malaysia) the following day.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-216 JA01AJ (msn 5153) approaches the Tokyo (Narita) hub.
Boeing (Chicago) and Skymark Airlines (Tokyo-Haneda) today announced the airline’s intent to select the Boeing 737 MAX as its next generation single aisle aircraft of choice, making it Japan’s first airline to do so. The announcement came on the first day of the 2013 Paris Air Show. Boeing will work closely with Skymark to finalize a firm order in the coming months.
Skymark Airlines currently operates a fleet of 30 Next-Generation 737-800s on a lease from GE Capital Aviation Services (GECAS) and other lessors.
The 737 MAX builds on the strengths of the world’s best-selling Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. Airlines operating the 737 MAX will see a 13 percent fuel-use improvement over today’s most fuel-efficient single-aisle airplanes.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-8HX WL JA73NB (msn 36848) prepares to land at Tokyo (Narita).
AirAsia (AirAsia.com) (Malaysia) (Kuala Lumpur) may be getting ready to quit its AirAsia Japan (Tokyo-Narita) joint venture with ANA (All Nippon Airways) (Tokyo) according to a report by the Wall Street Journal. The WSJ is reporting there is management “tension” and different approaches between the two main carriers.
One report has AirAsia selling all of its stock to ANA. ANA in return will merge AirAsia Japan with Peach Aviation. However this has not been confirmed by any of the parties which are reportedly exploring their options. Can the marriage between a fast-growing low fare airline and a mainline legacy flag carrier be saved?
AirAsia Japan commenced operations on August 1, 2012.
Read the full story from the Malaysian Insider: CLICK HERE
The CEO of AirAsia Japan issued this statement on June 11:
In regards to the recent media announcements on the dissolution of AirAsia Japan Co., Ltd., a joint venture between ANA Holdings Inc. and AirAsia Berhad; please be informed that our shareholders are still exploring all available options and any decision will be further subject to respective corporate approvals.
Rest assured that with the strong support from our major shareholder, ANA Holdings Inc., AirAsia Japan will continue to operate flights as usual.
As a Japan-based Low Cost Carrier (LCC), our goal is to make your dreams of travel a reality.
Your support is truly appreciated.
See you in the clouds!
CEO, AirAsia Japan
Copyright Photo: Michael B. Ing/AirlinersGallery.com. The only way to tell it is AirAsia Japan is the small “Japan” inscription by the nose and the JA Japanese aircraft registration. Airbus A320-216 JA03AJ (msn 5325) climbs away from the Tokyo (Narita) base.
Current Route Map:
Delta Air Lines (Atlanta) this weekend will begin new service between Seattle-Tacoma International Airport and Haneda Airport in Tokyo. Prior to the inaugural flight, Seattle was the largest West Coast city without nonstop service to Haneda, which is the preferred Tokyo airport for many business travelers due to its proximity to the city’s central business district.
Seattle-Haneda service adds to Delta’s growing Asian gateway in Seattle. In addition to Tokyo, Delta will begin new service to Shanghai on June 16, and also operates flights to Beijing and Osaka, Japan. In addition to its Asian gateway, Delta operates nonstop service to Paris and Amsterdam from Seattle. This summer the airline will operate more than 45 daily flights to 18 destinations worldwide from Seattle.
The Haneda flight will operate using Boeing 767-300 ER aircraft at which time every Delta trans-Pacific flight will feature full flat-bed seats in BusinessElite, as well as Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft. The flight also complements Delta’s nonstop service between Seattle/Tacoma and Tokyo-Narita, which upgrades to a Boeing 747-400 on June 1.
Delta’s successful international growth in Seattle is possible, in part, because of its partnership with Alaska Airlines, which operates a domestic hub at Seattle-Tacoma International Airport. The new Tokyo-Haneda flight will benefit from easy connections to more than 55 U.S. cities on Delta and Alaska’s domestic networks.
Delta’s schedule between Seattle-Tacoma International Airport and Haneda Airport:
|Flt 581||SEA at 9:10 p.m.||HND at 11:30 p.m. (following day)||June 1, 2013|
|Flt 580||HND at 12:30 a.m.||SEA at 5:40 p.m. (previous day)||June 3, 2013|
Delta Air Lines this weekend will also begin new nonstop service between Newark’s Liberty International Airport and Paris-Charles de Gaulle Airport. Newark is one of the largest markets from Paris.
The new service will be operated with Boeing 767-300 ER aircraft.
In addition to Newark, this summer Delta will offer flights between Paris and its hubs at New York-JFK, Atlanta, Salt Lake City, Minneapolis-St. Paul, Detroit and Cincinnati, as well as key business markets in Boston, Seattle, Philadelphia and Pittsburgh.
Delta’s schedule between Newark’s Liberty International Airport and Paris-Charles de Gaulle Airport:
|Flt 610||EWR at 6:50 p.m.||CDG at 8:35 a.m.||June 1, 2013|
|Flt 609||CDG at 1:30 p.m.||EWR at 3:50 p.m.||June 2, 2013|
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-332 ER WL N172DZ (msn 29691) arrives at Tokyo (Narita).
Japan Airlines-JAL (Tokyo) announced today that it will install all new seats in the airline’s two-class international Boeing 767-300 ER fleet as part of its continued commitment to provide customers with a high-quality, full-service experience. The latest improvements are in addition to the previously announced revamp of the airline’s four-class international Boeing 777-300 ERs.
JAL Business Class in the updated Boeing 767-300ERs will be fitted with 24 new JAL SKY SUITE II seats, each designed to recline 180 degrees into a fully flat bed. In addition, each seat in the 1-2-1 configuration provides unobstructed aisle access for an undisturbed flight allowing maximum personal enjoyment and a soothing rest.
In revamped aircraft’s JAL Economy Class, the airline will install its newest economy class seat, JAL SKY WIDER. A total of 175 seats will be available in a 2-3-2 configuration and seat highlights include increased pitch and a slim-style seatback design resulting in approximately 10 cm (MAX.) more legroom than the present seat pitch.
JAL plans to first introduce the completely revamped Boeing 767-300 ERs between Tokyo (Narita) and Vancouver from December 2013. The revamped aircraft will also be introduced onto select long-haul Southeast Asia routes and Honolulu routes by fiscal year 2014.
With these latest improvements, all of JAL’s routes operating to and from North America and Europe as well as the airline’s long-haul Southeast Asia routes will offer flat-reclining seats in JAL Business Class providing passengers with an even more comfortable in-flight experience.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-346 ER JA615J (msn 33850) approaches the Tokyo (Narita) hub. All others by JAL
The two airlines are buying 40 of the current version of the A320 and 60 of the new A320neo.
Air China’s order includes 27 current A320s (above) and 33 A320neos. Shenzhen will receive 13 current A320s (below) and 27 A320neos.
Deliveries will start in 2014.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Air China’s A320-214 B-6607 (msn 3461) prepares to land at the Beijing hub (please click on the photo for the full size view).
Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Shenzhen’s Airbus A320-214 B-6377 (msn 3599) arrives at Tokyo (Narita).
Air India (Mumbai) is considering selling all eight of its Boeing 777-200 LRs (Longer Range) according to a report by Reuters. The airline is working with Boeing on the sale of the aircraft. The aircraft would be replaced with newer Boeing 787s.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-237 LR VT-ALD (msn 36303) climbs into the clear sky at Tokyo (Narita).
Philippine Airlines (PAL) (Philippines) (Manila) has announced the launching of 12 new destinations to Australia, China, Malaysia and the Middle East, including a new domestic service to Northern Luzon in the continuing expansion of PAL’s route network.
The 12 new destinations include Kuala Lumpur (Malaysia) starting on May 2; Darwin, Brisbane and Perth (Australia) on June 1; Guangzhou (China) on June 2; Abu Dhabi (United Arab Emirates) on October 1; Doha (Qatar) on November 1; Riyadh, Jeddah and Dammam (Saudi Arabia) on December 1; Dubai (United Arab Emirates) on November 1 and Basco, Batanes on May 1 (the last two to be operated by PAL Express).
PAL’s current network, operated with PAL Express, consists of 32 domestic and 28 international destinations.
Copyright Photo: Nik French. Airbus A330-301 RP-C3333 (msn 191) approaches Tokyo (Narita) for landing.
Scandinavian Airlines-SAS (Stockholm) today (April 8) begins flying six times a week from Copenhagen to San Francisco. SAS
already flies to New York, Chicago and Washington. This is the first service to the U.S. West Coast by SAS.
The route will be operated using an Airbus 340-300.
SAS is forecasting around 125,000 passengers per year on the route. Of these, 55% will come from the Nordic countries and 10% from the rest of Europe. The remaining 35% will come from the USA.
Meanwhile SAS is ending service to Bangkok, a route it has served since 1949. This was an important route for SAS. It helped to create Thai Airways in 1960.
Copyright Photo: Michael B. Ing. Airbus A340-313X OY-KBC (msn 467) climbs away from Tokyo (Narita).
ANA (All Nippon Airways) (Tokyo) according to this report by Reuters, is planning to put its Boeing 787-8 pilots through resumption training. Pending recertification by the FAA and the Japanese authorities, the airline is now planning to resume 787 operations in June, possibly first as a freighter to allay any fears by the flying public over the now-being-tested battery system fix.
Read the full report: CLICK HERE
Copyright Photo: Akira Uekawa. Boeing 787-8 JA802A (msn 34497) climbs away from Tokyo (Narita) in the special 787 colors when it was flying. Will the “787″ now be removed from the side of the fuselage?
Lufthansa (Frankfurt) today has cancelled nearly 40 percent of its flights due to a strike by its employees on the eve of wage discussions according to Reuters. According to this report, the union Verdi is demanding a 5.2 percent pay increase for the 33,000 cabin crew and ground staff at Lufthansa, Lufthansa Cargo, Lufthansa Technik, Lufthansa Systems, LSG Sky Chefs and the ground crews. the union also wants a commitment by Lufthansa to safeguard all current jobs.
Read the full report: CLICK HERE
Meanwhile Lufthansa issued this statement:
Due to a warning strike at German airports this morning it is expected that some flight operationsto and from Frankfurt, Munich, Düsseldorf, Berlin, Hamburg and Cologne will be affected throughout the afternoon and evening of 21 March 2013.
Lufthansa regrets any inconvenience to Lufthansa passengers caused by the strike measures and will do its utmost to minimise impacts on passengers. Passenger support and service has paramount priority.
All Lufthansa passengers are urged to check the status of their flight before beginning their journey at My bookings.
If your flight is operating, please plan for some extra time when travelling to the airport, as you may experience longer waiting times in the terminals.
Check currently cancelled flights under
Passengers whose flights have been cancelled are kindly asked to check on
if they have already been checked in on an alternative flight. If this is the case, the boarding pass for the new flight can instantly be created online.
Affected passengers please check the status of their booking prior to departure at
You might find an alternate flight and can check-in for it here.
Up-to-date information on your Lufthansa flights is available under
If your flight to/from Germany has been cancelled:
Affected passengers can refund or rebook their flights free of charge. If your flight has been cancelled and you cannot use the self-service options above, passengers in Germany can contact our Service Center toll-free on 0800-850-60-70* or via one of our local phone numbers.
*toll-free from German landlines
Passengers travelling within Germany whose flights have been cancelled due to the weather may alternatively travel by train with Deutsche Bahn.
To do this, please exchange your etix for a travel voucher under My Bookings or at a Lufthansa check in machine. When exchanging the voucher online you can either print the travel voucher or send it per E-mail/SMS to your mobile phone.
If you do not have the time to exchange your ticket online or at the machine, we recommend you purchase a regular train ticket. In this case we kindly ask for your understanding that you will then be refunded the unused portion of your ticket. As the reason for cancellation was force majeure we are unable to provide any compensation beyond the value of the unused ticket. Please contact your ticket issuing office after your travel for a refund of your unused ticket.
You can receive current travel information under Deutsche Bahn or on your mobile phone via m.bahn.de.
Your baggage could not be forwarded on the alternative flight/train.
In order to deliver your baggage please fill in our Lufthansa Baggage form or please contact the Lufthansa baggage tracing counter as soon as you arrive at your destination. For status updates on your missing baggage please go to Lufthansa baggage tracing online. Check here for further information on baggage liability.
Free of charge rebooking due to strike
Passengers holding a Lufthansa/SWISS, Austrian Airlines or Brussels Airlines ticket for flights from/to or via a German airport on 21 March 2013 can rebook free of charge online under My Bookings.
The following conditions apply:
- the ticket needs to have been issued on/before 20 March 2013
- the new travel date needs to be before/on 30 June 2013
- rebooking within the original fare: Exept for Lufthansa Group operated flights a rebooking can be in the next higher booking class
- departure/arrival city as well as class of travel remain unchanged
- all further original ticket conditions apply without changes
Copyright Photo: Michael B. Ing. Airbus A340-642X D-AIHX (msn 981) climbs gracefully away from Tokyo (Narita).
Boeing (Chicago) is now testing the 787 batteries to a new standard that it originally helped to develop but never used in the original certification testing according to this excellent report by Reuters.
Read the full report: CLICK HERE
Copyright Photo: Michael B. Ing. JAL’s Boeing 787-8 Dreamliner JA822J (msn 34832) climbs away from Tokyo (Narita) when it was flying.
Delta Air Lines (Atlanta) has filed an application with the U.S. Department of Transportation (DOT) to add additional nonstop flights between Sao Paulo and the key business markets of New York (JFK) and Atlanta, increasing competition on air service between the U.S. and Brazil.
If approved, Delta will begin second daily Sao Paulo flights to both Atlanta and New York in 2013.
Delta currently operates 35 nonstop weekly flights between Brazil and the U.S. including Atlanta, Detroit and New York-JFK to Sao Paulo, as well as from Atlanta to Rio de Janeiro and Brasilia.
Delta’s proposed addition of a second daily flight between Sao Paulo and John F. Kennedy International Airport in New York’s marks another important step in Delta’s plan to invest and grow at New York. The new flight will operate out of the expanded and enhanced state-of the-art International Terminal 4, which opens its doors in 90 days amid a $1.4 billion million terminal expansion project.
In its filing, Delta also requested approval to continue its daily nonstop service between its hub in Detroit and Sao Paulo. Delta’s right to operate that flight will transfer to US Airways in 2015 as part of a previously approved slot transaction that allowed Delta to expand at LaGuardia Airport in New York.
This is the first time in more than a decade that the Department of Transportation has the opportunity to allocate new Sao Paulo frequencies. These opportunities arise as direct result of the U.S. government’s success in negotiating a new air service agreement with Brazil, which is expected to result in a full Open Skies agreement by 2015.
The new frequencies would be served with Delta’s 767-300 ER equipped with state-of-the-art flatbed seats, video on demand entertainment system, and award-winning food and wine service, Ferri said. The 767 has a capacity of 210 passengers, 35 Business Elite, 32 Economy Comfort and 143 economy class seats.
Copyright Photo: Michael B. Ing. Boeing 767-332 ER N172DZ (msn 29691) climbs briskly away from the runway at Tokyo (Narita)
Delta Air Lines (Atlanta) has received final approval from the U.S. Department of Transportation (DOT) to operate new nonstop service between Seattle/Tacoma and Tokyo International Airport, also known as Haneda Airport. The new flights will begin on June 1, 2013.
The Haneda flight adds to Delta’s growing Asian gateway in Seattle/Tacoma. In addition to Tokyo-Haneda, Delta will begin new service to Shanghai on June 17, and also operates flights to Beijing, Tokyo-Narita and Osaka, Japan.
Seattle is the largest West Coast city without nonstop service to Haneda, which is the preferred Tokyo airport for many business travelers due to its proximity to the city’s central business district.
The new Haneda flight will complement Delta’s nonstop flight between Seattle/Tacoma and Tokyo-Narita, which will be expanded and upgraded to Boeing 747-400 service on June 1. Delta’s Boeing 747-400 fleet was recently retrofitted with new interiors featuring full flat-bed seats in BusinessElite, Delta’s popular Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft.
Once the Boeing 747-400 is deployed on the Seattle/Tacoma-Narita route, all of Delta’s trans-Pacific flights will feature full flat-bed seats in BusinessElite as well as Economy Comfort and individual in-flight entertainment throughout the aircraft.
In addition to its Asian gateway, Delta operates nonstop service to Paris and Amsterdam from Seattle/Tacoma. By next summer the airline will operate more than 40 daily flights to 15 destinations worldwide from Seattle.
Delta’s international growth in Seattle/Tacoma is possible because of its partnership with Alaska Airlines (Seattle/Tacoma), which operates a domestic hub at Seattle-Tacoma International Airport. Customers of both carriers enjoy access to an expanded network under a major codesharing agreement, as well as reciprocal frequent flier benefits and airport lounge access. The new Tokyo-Haneda flight will benefit from easy connections to 55 U.S. cities on Delta and Alaska’s domestic networks.
Copyright Photo: Michael B. Ing. Boeing 747-451 N676NW (msn 33002) climbs away from Tokyo (Narita).
JAL-Japan Airlines (Tokyo) stated yesterday (January 13) its Boeing 787 Dreamliner involved in the fuel leak (second incident) at Boston last week and undergoing safety checks in Tokyo had leaked fuel again during tests according to this report by Reuters.
According to Reuters, “An open valve on the aircraft caused fuel to leak from a nozzle on the left wing used to remove fuel, a company spokeswoman said. The jet is out of service after spilling about 40 gallons (roughly 150 liters) of fuel onto the airport taxiway in Boston due to a separate valve-related problem.”
Meanwhile Japan’s transport ministry has launched an investigation into the fuel leaks. The FAA and Boeing continue their investigations into the mishaps of the 787.
On January 10 after the first Boston incident involving a fire on another Dreamliner on January 7, 2013, JAL stated:
“Japan Airlines initiated and completed inspections on all other Boeing 787 aircraft in its fleet the following the (first) incident at Boston and found no irregularities.
We sincerely apologize for the concern and inconvenience caused to our valuable customers.
Safety is of utmost importance to Japan Airlines and we will continue striving to ensure safe operations of each and every flight, and on all our aircraft types including the 787 Dreamliner. Please be assured on your future travel with us.”
Boeing issued this statement on its involvement with the FAA on the safety review of the 787:
Boeing Chairman, President and CEO Jim McNerney issued the following statement after U.S. Transportation Secretary Ray LaHood and FAA Administrator Michael P. Huerta announced that the FAA and Boeing will start a review of the 787′s recent issues and critical systems:
“Boeing shares the same commitment to air travel safety that Transportation Secretary LaHood and FAA Administrator Huerta spoke of this morning in Washington, D.C. We also stand 100 percent behind the integrity of the 787 and the rigorous process that led to its successful certification and entry into service. We look forward to participating in the joint review with the FAA, and we believe it will underscore our confidence, and the confidence of our customers and the traveling public, in the reliability, safety and performance of the innovative, new 787 Dreamliner.”
Will Boeing drop the “Dreamliner” name?
Read the full report: CLICK HERE
Copyright Photo: Michael B. Ing. JAL remains committed to the 787 despite the teething problems of the new type. JAL has taken delivery of seven 787s. 787-8 JA827J (msn 34837) approaches Tokyo (Narita) for landing.
EgyptAir (Cairo) is planning to start two new routes from Cairo in June 2013 per Airline Route. Cairo-Manchester will start on June 1 and will operate five days a week with Boeing 737-800s.
Service to Toronto will be via a code-share with Air Canada via London Heathrow (correcting our previous report).
Read the full report: CLICK HERE
Copyright Photo: Michael B. Ing. Boeing 777-36N ER SU-GDL (msn 38284) climbs away briskly from Tokyo (Narita).
Delta Air Lines and Virgin Atlantic Airways to form a strategic alliance, Delta to buy 49% of Virgin Atlantic from Singapore Airlines
Delta Air Lines (Atlanta) and Virgin Atlantic Airways Ltd. (London) have reached an agreement for a new joint venture that will create an expanded trans-Atlantic network and enhance competition between the U.K. and North America, offering greater benefits for customers traveling on those routes.
As part of this joint venture agreement, Delta will invest $360 million in Virgin Atlantic, acquiring a 49 percent stake currently held by Singapore Airlines. Virgin Group and Sir Richard Branson will retain the majority 51 percent stake and Virgin Atlantic Airways will retain its brand and operating certificate.
Highlights of the agreement include:
- A fully integrated joint venture that will operate on a “metal neutral” basis with both airlines sharing the costs and revenues from all joint venture flights.
- A combined trans-Atlantic network between the United Kingdom and North America with 31 peak-day round-trip flights.
- Enhanced benefits for customers including cooperation on services between New York and London, with a combined total of nine daily round-trip flights from London-Heathrow to John F. Kennedy International Airport and Newark Liberty International Airport.
- Reciprocal frequent flyer benefits.
- Shared access to Delta Sky Club and Virgin Atlantic Clubhouse airport lounges for elite passengers.
The airlines will file an application with the U.S. Department of Transportation for antitrust immunity, which will allow a closer relationship and coordination on schedules and operations. The transaction also will be reviewed by the U.S. Department of Justice and the European Union’s competition regulator and other relevant authorities. The share purchase and the joint venture are expected to be implemented by the end of 2013.
“Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the U.K., particularly on the New York-London route, which is the largest airline route between the U.S. and Europe,” said Delta CEO Richard Anderson. “By combining the strengths of our two companies in a joint venture, we can provide customers with a seamless network between North America and the U.K., and continue building a better airline for our customers, employees and shareholders.”
Steve Ridgway, Virgin Atlantic Chief Executive, added: “Consumers will reap the rewards of this partnership between two great airline brands on services from the UK to the USA, Canada and Mexico through a shared ethos in the highest standards of customer service. This joint venture will deliver much more effective competition at Heathrow.
“Both airlines are confident that the Department of Transportation will be as convinced as we are of the extensive consumer benefits arising from this joint venture, with expedited approval being granted by the end of 2013. The trans-Atlantic market is Virgin Atlantic’s heartland – it’s where we started. By aligning with Delta we can continue to grow our North American network and offer greatly enhanced connectivity across the USA.”
Virgin Atlantic President, Sir Richard Branson, commented: “This is an exciting day in Virgin Atlantic history. It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business. I truly look forward to the possibilities our partnership with Delta will offer. We have always been known for our innovation and service and have punched above our weight for 28 years. That is why our customers love us so much. We will retain that independent spirit but move forward in a strengthened partnership with Delta.”
Delta and Virgin Atlantic customers will be able to earn and redeem miles across Delta’s SkyMiles and Virgin Atlantic’s FlyingClub frequent flyer programs. Premium customers also will have reciprocal access to the Delta Sky Club and Virgin Atlantic Clubhouse airport lounges. Full details will be announced as services become available.
The partnership allows both carriers to offer a greatly expanded network at Heathrow and to overcome slot constraints, which have limited the growth and competitive capability of both airlines. The two carriers will operate a total of 31 peak-day round-trip flights between the U.K. and North America, 23 of which operate at London-Heathrow. The enlarged network will benefit customers of both carriers by providing greater access to a broader network, improved connectivity and convenient booking options.
As part of a $3 billion investment in enhanced global products, services and airport facilities, all of Delta’s flights between the U.S. and London-Heathrow feature full flat-bed seats offering direct aisle access in the BusinessElite cabin. These flights also offer Delta’s popular Economy Comfort seating in the forward section of the economy cabin. Economy Comfort offers four additional inches of legroom and 50 percent more recline compared to standard economy seats. All cabins offer in-seat audio and video on demand with a broad range of in-flight entertainment options. Delta also will begin introducing in-flight WiFi service on international flights beginning in 2013.
Virgin Atlantic has recently completed a £150m upgrade program. A new Upper Class cabin has been introduced across its Airbus A330 aircraft, which features the longest fully flat bed in the sky. This is complemented by a redesigned onboard bar and new Clubhouses at both JFK and Newark airports. The airline’s Boeing 747 leisure fleet has been completely refitted and features onboard connectivity and VERA Touch – Virgin Atlantic’s award-winning touch screen in-flight entertainment system – offering passengers hours of entertainment at their fingertips.
Top Copyright Photo: Michael B. Ing. Boeing 747-451 N668US (msn 24223) completes its final approach into Tokyo (Narita).
Bottom Copyright Photo: Keith Burton. Airbus A340-642 G-VWEB (msn 787) arrives at the London (Heathrow) hub.
Air Canada (Montreal) is launching a new nonstop route between Toronto (Pearson) and Seoul (Incheon), starting service to Istanbul subject to government approval, adding seven weekly departures to Beijing from Toronto and Vancouver , and upgrading its Calgary-Tokyo Narita route to provide daily service.
Highlights of Air Canada’s 2013 summer schedule include:
- Nonstop service to Istanbul beginning June 4 . Subject to government approval, Air Canada will begin flying three-times weekly, year-round to the historic city which also serves as a gateway to other destinations in Turkey , Central Asia, the Middle East and Africa . Flights will be operated with a Boeing 767-300 ER aircraft. It will be the only early evening departure from Toronto to Istanbul .
- The launch on June 2 of a new Toronto-Seoul service operating three times a week, creating a fifth Asian destination from Air Canada’s Toronto hub. The year-round service, operated with a Boeing 777-300 ER aircraft, will complement existing Vancouver to Seoul service by providing daily departures from Canada to Seoul .
- An addition of three more weekly departures between Toronto and Beijing starting June 1 , bringing the total number of departures from Toronto to Beijing to ten a week. The flights will be operated with a Boeing 777-300 ER aircraft
- Four additional departures each week between Vancouver and Beijing starting June 1 , for a total of 11 weekly departures, including a new late night flight timed to be convenient for business travellers. The flights will be operated with a Boeing 767-300 ER aircraft.
- The upgrading of our Calgary-Tokyo Narita service starting May 1 to offer daily departures, up from five a week last summer. The flights are operated with a Boeing 767-300 ER.
Copyright Photo: Michael B. Ing. Boeing 777-333 ER C-FIVM (msn 35251) approaches Tokyo (Narita) for landing.
UPS-United Parcel Service (UPS Airlines) (Atlanta) reported yesterday (October 23) on its third quarter financial results. Here is the statement by the company:
UPS) has announced third quarter 2012 adjusted diluted earnings per share of $1.06. The International segment led the way with its highest third quarter in history generating $449 million in operating profit, up 7.7% over the prior-year period. UPS updated its full-year 2012 guidance for adjusted diluted earnings per share to a range of $4.55 to $4.65, reflecting greater confidence in fourth quarter execution.
On a reported basis, third quarter 2012 earnings per share were $0.48. In August, the company announced a decision to restructure pension liabilities for certain employees. As a result, UPS recorded an after-tax, non-cash charge of $559 million during the quarter.
“Our results were achieved in an environment of slowing global trade and changing market dynamics,” said Scott Davis, UPS chairman and CEO. “This not only highlights the flexibility of our business model; it illustrates the breadth of the UPS product portfolio in meeting the needs of customers.”
|Average volume per day||
|Diluted earnings per share||
During the quarter, UPS delivered 15.5 million packages per day, a 2.9% increase over the prior-year period.
For the nine months ending Sept. 30, UPS generated free cash flow in excess of $3.6 billion. The company repurchased 18.5 million shares for approximately $1.4 billion and paid dividends totaling $1.6 billion, a 9.6% increase per share over the prior year.
Capitalizing on credit market conditions, during the quarter UPS issued $1.75 billion of debt. Proceeds will be used to pay notes that mature in January 2013. The company ended the period with $9.0 billion in cash and marketable securities. The primary uses of these funds will be the acquisition of TNT Express and debt repayment.
|U.S. Domestic Package||
|Average volume per day||
U.S. Domestic revenue increased $94 million over the prior-year period, driven by a 3.7% gain in daily package volume. Adjusted operating profit declined $21 million, impacted negatively by one less operating day and the timing of the fuel surcharge.
On a reported basis, operating profit was $129 million as a result of the pension restructuring previously mentioned.
Rapid e-commerce growth drove gains in daily volume, with Ground and Deferred up 3.0% and 9.3%, respectively. Next Day Air volume expanded 5.7% over the prior-year period, as retailers continued to utilize UPS Next Day Air Saver to differentiate their offerings.
Base rate improvements were more than offset by lower fuel surcharges, and changes in product and customer mix. Consequently, revenue per package declined 0.8% from the same quarter last year.
|Average volume per day||
The International segment produced operating profit of $449 million, its highest third quarter ever. Operating margin was up 170 basis points over the prior-year period to 15.3%. Export package growth, network changes and currency translation contributed to this improvement.
Revenue declined 3.7%, as the impact from lower fuel surcharges and currency exceeded the benefit from the 1.2% growth in daily Export volume.
For the first time in several quarters, Asia exhibited growth in Export package volume, benefitting from product launches and easier comparisons. Although the rate of growth in Europe has slowed, it remained positive.
Supply Chain and Freight
Operating margin for the Supply Chain and Freight segment remained strong at 8.3%. Operating profit was down $15 million, as declines in Forwarding were partially offset by improvement in UPS Freight.
The Freight Forwarding unit was pressured by overcapacity in the market, especially out of Asia. Revenue decreased as lower yields offset modest tonnage gains.
Although the Distribution unit experienced strong revenue growth, investments in healthcare capabilities and infrastructure weighed on margin expansion. Recently, UPS opened three new healthcare distribution facilities in Sydney, Australia and in Shanghai and Hangzhou, China.
UPS Freight revenue increased 3.6% as shipments per day were up slightly. LTL revenue per hundredweight and gross weight hauled improved over the prior year period, resulting in operating margin expansion.
“UPS performance this quarter reflects the ability of our global network to adapt to soft macro conditions,” said Kurt Kuehn, UPS chief financial officer.
“While there is some uncertainty around the magnitude of the holiday shopping season, we are confident in UPS’s ability to deliver,” Kuehn continued. “As a result, we enhanced our guidance by narrowing the range, maintaining our previous midpoint. We anticipate 2012 adjusted diluted earnings per share to be within a range of $4.55 to $4.65, an increase of 5%-to-7% over 2011 adjusted results.”
Copyright Photo: Michael B. Ing. McDonnell Douglas MD-11 (F) N292UP (msn 48566) completes its final approach into Tokyo (Narita).
British Airways (London) and JAL-Japan Airlines (Tokyo) will start their new joint venture on October 1.
British Airways issued the following statement:
British Airways and Japan Airlines (JAL) will begin a joint business agreement with the two airlines sharing revenue on applicable flights between Europe and Japan.
The joint business, which starts on October 1, 2012, will benefit customers by providing better links between Europe and Japan, greater choice of flights to more destinations, enhanced frequent flyer benefits and the potential to launch new routes.
British Airways and JAL, both members of the oneworld® alliance, have been forging ever closer ties in their evolution to the joint business. Earlier this month, JAL and British Airways began offering codeshare flights between Tokyo (Haneda and Narita) and London (Heathrow). The joint business will now see the two airlines co-operating on all non-stop flights operated by JAL or British Airways between Japan and Europe. This will not only include the 19 weekly services between the UK and Japan, but also JAL’s services to Paris and Frankfurt. This gives customers the flexibility of using a combination of JAL and British Airways flights and aligned fares on their journey to and from Japan and Europe, significantly increasing their options.
JAL and British Airways will also be improving flight transfers for customers by enhancing and expanding the codeshare network beyond their respective hub cities. JAL customers will, be able to book seats to the new codeshare destinations of Belfast, Helsinki, Frankfurt, and Gothenburg. British Airways will extend its reach to more destinations in Japan by codesharing on flights to Kansai, Okayama, Izumo, Okinawa, Nagasaki, Hiroshima and Kagoshima. Further expansion of codeshare arrangements are expected in the future. The websites of the two airlines will also be updated to enable customers to make bookings and check-in online, and access the flight information they need, irrespective of the carrier they are flying on.
Customers participating in JAL and British Airways’ loyalty programs will continue to enjoy reciprocal benefits as customers of oneworld, but top tier members of the respective loyalty schemes will now have the opportunity to earn bonus points on applicable flights on either airline.
In other news, British Airways will start nonstop London (Gatwick)-Alicante Boeing 737-400 service service on March 31, 2013 per Airline Route.
Top Copyright Photo: Michael B. Ing. Boeing 767-336 ER G-BNWD (msn 24336) climbs away from the London (Heathrow) hub.
Bottom Copyright Photo: Ken Petersen. Boeing 767-346 ER JA615J (msn 33850) in the special Samantha Thavasa motif lands at the Tokyo (Narita) hub.
American Airlines‘ (Dallas/Fort Worth) 7,500 pilots, represented by the Allied Pilots Association (APA), have rejected by a 61 percent vote, to disapprove the latest tentative contract. American stated it was disappointed by the vote and will now ask the bankruptcy court to impose harsher terms for its pilots.
Meanwhile AA’s flight attendants are voting on a tentative agreement through August 19.
Read the full account in the Washington Post: CLICK HERE
Copyright Photo: Michael B. Ing. Boeing 777-223 ER N786AN approaches Tokyo (Narita) for landing.
United Airlines (Chicago) has announced it has reached a tentative agreement with the Association of Flight Attendants (AFA) covering flight attendants from the company’s Continental Micronesia (CMI) subsidiary.
The agreement extends the current collective bargaining agreement through December 2014. Flight attendants will vote on the agreement in the coming weeks.
Flight attendants from the company’s United subsidiary ratified a new four-year contract in February 2012, and flight attendants from the Continental subsidiary ratified an extension of their collective bargaining agreement last week.
Copyright Photo: Michael B. Ing. Boeing 737-824 N26232 (msn 28942) arrives at Tokyo (Narita). The aircraft is crewed by Continental Micronesia flight attendants but is operated under the United (old Continental) brand.
Austrian Airlines moves all aircraft (except one) to Tyrolean Airways, Austrian Arrows name being retired
Austrian Airlines (Vienna) as of midnight July 1, 2012 moved all flight operations to lower-cost subsidiary Tyrolean Airways (Innsbruck), including all of the long-range flights. One former Lauda Air Boeing 777-2Z9 (OE-LPB) was kept on the Austrian certificate to maintain its official “airline” status.
The company issued this statement:
“As of July 1, 2012, there will be joint flight operations under the unified Austrian brand name.
The objective: achieving competitive framework conditions enabling profitable operations
All of the flight operations of the Austrian Airlines Group, which has a fleet of some 80 aircraft, are now bundled at its 100% subsidiary Tyrolean Airways. As of July 1, 2012 Tyrolean is also operating the long-distance fleet.
For customers, the so-called “operational transition” will not result in any essential changes. The “Austrian” brand will remain on all aircraft. The flight numbers will also bear the “OS” airline code, as was the case in the past. However, travel agencies and tickets will provide notification on the identity of the operator of the aircraft undertaking all medium and long-distance flights based on the supplementary annotations “VO” or “operated by Tyrolean”. The supplementary brand “arrows” found on Tyrolean Airway aircraft will successively be removed by the end of 2012.
What has happened in detail:
• Aircraft fleet: 22 airplanes of the A320 family, 7 Boeing 737s, 6 Boeing 767s and 3 Boeing 777s changed their operators within the Austrian Airlines Group on midnight of July 1, 2012. One Boeing 777, OE-LPB, will stay with Austrian Airlines. This is due to international traffic laws. The outplacement of the fleet of the seven Boeing 737 medium-range airplanes still on hand and the “in-placement” of the seven Airbus A320s forms part of the harmonization of the fleet of medium-range aircraft which is being continued.
• Organization: The organization of the entire flight operations is to be bundled in Tyrolean Airways. Austrian Airlines retains such key responsibilities as station management, the technical department, sales in Austria and abroad, as well as such management departments as network planning, personnel, finances and marketing. There will be no changes in ownership. “Tyrolean Airways Tiroler Luftfahrt GmbH” remains a 100% subsidiary of Austrian Airlines AG.
• Austrian Airlines retains its operation authorization, and remains the user of traffic rights. The flights will be performed under the OS flight numbers. However, they will be “operated by Tyrolean”. Austrian Airlines serves some 50 countries from Vienna. No further permits or licenses need to be secured in a large number of countries. This is due to the fact, amongst other reasons, because prevailing legal regulations, especially in the European Union, generally permit this. For countries outside Europe, the requisite approvals have been secured.
• Personnel: some 460 pilots and 1,500 flight attendants are changing their employer within the Group. They will be transferred from Austrian Airlines to Tyrolean Airways. 110 pilots and 214 flight attendants have, in the final analysis, left the company. As a whole, Austrian has 900 pilots and 2,000 flight attendants, including the Tyrolean employees. The employees will not experience any changes in working environments and remuneration. Tyrolean currently has a work force of about 1,500 employees, which will increase to 3,500 employees as a consequence of the operational transition. The Austrian Airlines Group employs approximately 6,700 people.
• Flight plan: to compensate for the departure of the pilots, a series of temporary measures were implemented for the summer flight plan:
• Retraining: The removal of 4 Boeing 737 airplanes from the fleet leaves 31 Boeing 737 pilots available. They have already been trained to fly Airbus A320 airplanes. The cessation of part-time work at Tyrolean has freed 36 Tyrolean co-pilots for other duties. These pilots, who were trained to fly Fokkers, have already been retrained to handle Airbus aircraft.
• Leasing of airplanes: Austrian Airlines will temporarily lease five airplanes from Lufthansa, Augsburg Airways, Contact Air und Welcome Air (wet leases). Lufthansa will provide a 139-seat Boeing 737-300 to fly the OS routes between Vienna and Düsseldorf and between Vienna and Rome in July and August. Lufthansa will assume responsibility for Vienna-Dubai-Vienna in July by flying a 241-seat Airbus 340-300. In a further move, the Salzburg-Frankfurt route, which has been served by Austrian acting under a commission from Lufthansa, will be operated by Lufthansa itself using a Boeing 737-300 for the first two weeks in July. Contact Air will fly a Fokker 100 seating 100 passengers to two of the four daily OS routes between Vienna-Zurich-Vienna and Vienna-Varna-Vienna. This aircraft would have originally been flown as a “wet lease” under a commission of Austrian’s associate SWISS. Augsburg Airways, which is part of the Lufthansa Group, will temporarily assume responsibility for one of the four flights serving the route between Vienna-Munich-Vienna and for two of the total of three flights on the Vienna-Stockholm-Vienna route during the period July 15 – August 31. 2012. Welcome Air will use a further a 31-seat Dornier 328 to carry out flights between Vienna and Klagenfurt, Salzburg and Prague, in addition to the existing four of the five flights between Linz und Vienna. Passengers will receive Austrian’s on-board services. Austrian will make use of the longer on-ground times by having Austrian Technik conduct maintenance work.
• Freelancers: Some of those pilots that have made use of the privileged termination of employment will be provided with work on a temporary and case-by-case basis.
The reorganization is based on the operational transition is a key component of the EUR 220 million restructuring program presented in January 2012. The objective of the program is the modernization of the structures of Austrian Airlines, so as to bring and sustainably keep Austria’s largest domestic airline in the profit zone.”
Bottom line: Austrian Airlines (under orders from parent Lufthansa) needed to reduce its cost structure and this dramatic move will probably accomplish this goal.
Top Copyright Photo: Michael B. Ing. Sister-ship Boeing 777-2Z9 ER OE-LPC (msn 29313) is now being operated for Austrian Airlines by Tyrolean Airways.
Bottom Copyright Photo: Gerd Beilfuss. Boeing 777-2Z9 OE-LPB (msn 28699) when it was with Lauda Air.
Delta Air Lines Airbus A330-223 N851NW (msn 609) NRT (Michael B. Ing), originally uploaded by Airliners Gallery.
Delta Air Lines (Atlanta) will add an eighth destination to its growing Africa route network on January 20, 2011 between the United States and Luanda, Angola. Flights will operate three times per week with 243-seat Airbus A330-200 aircraft flying between Delta’s hub at Hartsfield-Jackson Atlanta International Airport and Luanda with an intermediate stop in Dakar, Senegal.
Delta also is working with TAAG Angolan Airlines for TAAG to codeshare on the flights at a future date.
Copyright Photo: Michael B. Ing. Airbus A330-223 N851NW (msn 609) prepares to land at Tokyo (Narita).
Delta Air Lines Boeing 747-451 N675NW (msn 33001) NRT (Michael B. Ing), originally uploaded by Airliners Gallery.
Delta Air Lines (Atlanta) has unveiled plans for the complete revitalization of its fleet of Boeing 747-400 aircraft flying primarily from the Tokyo-Narita hub. Between summer 2011 and 2012, Delta will equip each of its 16 747-400s with new fully horizontal flat-bed seats in the BusinessElite cabin and new Economy class seats featuring personal, on-demand entertainment, increased personal space and added under-seat storage.
The 747 upgrades will bring substantial changes to both decks of the aircraft’s BusinessElite cabin. The new, custom-designed product will feature 48 horizontal flat-bed seats with direct aisle access at each seat. Window seats will face the window for improved privacy and center seats will be angled toward each other for the convenience of customers traveling together.
The new seat, manufactured by Weber Aircraft LLC, will be 81.7 inches in length and 20.5 inches wide, similar to the flat-bed product currently offered on Delta’s 777-200LR fleet. It also will feature a 120-volt universal power outlet, USB port, personal LED reading lamp and Panasonic’s 15.4 inch personal video monitors with instant access to 250 new and classic movies, premium programming from HBO and Showtime, video games and more than 4,000 digital music tracks.
Customers in Economy class on the 747-400 will benefit from the industry’s first seat designed collaboratively by a seat manufacturer and an in-flight entertainment company, Weber Aircraft and Panasonic Avionics Corporation, to fully incorporate seat and entertainment functionality into one product. Using a nine-inch screen, the new seat’s embedded touch-screen entertainment system will offer each customer access to 250 movie titles, hundreds of television shows, 4,000 digital music tracks, personalized music playlists, more than a dozen interactive games and a USB port to charge iPods and other personal electronic devices.
The new seats offer up to 1.5 inches more personal space and increased under-seat storage through a “slimline” design that more efficiently uses cabin space than the older, heavier seats they replace. The upgraded seats also feature adjustable headrests and deliver environmental benefits through the Panasonic Eco 9i Integrated Smart Monitors that use 30 percent less energy and are 60 percent lighter than entertainment systems installed on other Delta aircraft.
Delta’s 747s are dedicated largely to trans-Pacific and intra-Asia flights to and from the Tokyo-Narita hub, including routes connecting Tokyo to Detroit, Honolulu, Manila, Minneapolis/St. Paul, New York-JFK and Shanghai.
When reconfigured, the 747s will accommodate 386 customers with 48 BusinessElite seats and 338 Economy class seats.
Copyright Photo: Michael B. Ing. Ex-Northwest Boeing 747-451 N675NW (msn 33001) now in Delta’s colors arrives at the Tokyo (Narita) hub.
ANA (All Nippon Airways) Boeing 747-481 JA8098 (msn 25207) NRT (Michael B. Ing), originally uploaded by Airliners Gallery.
ANA-All Nippon Airways (Tokyo) meanwhile will retire the Boeing 747-400 from international scheduled service at the end of this month. From September, the remaining three 747-400s will be used only for charter flights, especially to Canada. The international 747-400s will be retired by March 2011.
The 747-400 (D) (domestic) aircraft will remain in service for the
Copyright Photo: Michael B. Ing. Boeing 747-481 JA8098 (msn 25207) lines up to land at Tokyo (Narita).
ANA (All Nippon Airways) Boeing 777-381 ER JA781A (msn 27041) NRT (Michael B. Ing), originally uploaded by Airliners Gallery.
ANA (All Nippon Airways) (Tokyo) has reported a net loss of $235 million for its fiscal ending on March 31.
Read the full report in the WSJ:
Copyright Photo: Michael B. Ing. ANA’s Boeing 777-381 ER JA781A (msn 27041) approaches the Narita hub near Tokyo.
ANA-All Nippon Airways Boeing 777-381 ER JA736A (msn 34893) NRT (Michael B. Ing), originally uploaded by Airliners Gallery.
ANA (All Nippon Airways) (Tokyo-Haneda) reported a net loss of $603 million for its fiscal year ending on March 31.
Copyright Photo: Michael B. Ing. A nice study of ANA’s Boeing 777-381 ER JA736A (msn 34893) arriving back at the Tokyo (Narita) base.
Air China Boeing 777-2J6 B-2066 (msn 29745) NRT (Michael B. Ing), originally uploaded by Airliners Gallery.
Air China (Beijing) swung back into the black for 2009 with a $736 million net profit.
Read the full story:
Copyright Photo: Michael B. Ing. Air China’s Boeing 777-2J6 B-2066 (msn 29745) approaches Tokyo (Narita) for landing.
ANA-Air Japan Boeing 767-381 ER JA607A (msn 32976) NRT (Michael B. Ing), originally uploaded by Airliners Gallery.
ANA (All Nippon Airways) (Tokyo) has announced, as a result of a board decision on April 2, 2010, that two of its consolidated subsidiaries, namely Air Japan Company, Ltd. (“AJX”) and ANA & JP Express Company, Ltd. (“AJV”) will be merged. ANA has announced a merger target date of July 1, 2010. Air Japan will be the surviving carrier, operating Boeing 767-300s.
Read the full press release:
Originally uploaded by Airliners Gallery
ANA (All Nippon Airways) (Tokyo-Haneda) is proceeding to order five new Boeing 777-200 ERs (for FY 2012 delivery) and five 767-300 ERs (for FY 2010 delivery).
Copyright Photo: Michael B. Ing.
ANA (All Nippon Airways) Boeing 747-481 JA8098 (msn 25207) NRT, originally uploaded by Airliners Gallery.
ANA (All Nippon Airways) (Tokyo-Haneda) will be phasing out the remaining three Boeing 747-400s (JA8098,JA8958,JA8962) in 2010. All three aircraft are deployed on charters, except for occasionally substituting for the Boeing 777s on the Tokyo (Narita)-Paris (CDG) route. 10 747-400Ds (without the winglets) will remain in service on trunk domestic routes, although they are likely to be phased out with delivery of the Boeing 787 Dreamliners.
Copyright Photo: Michael B. Ing.
Please click on photo or link below for full view, information, prints for sale and other photos:
JAL-Japan Airlines (Tokyo-Haneda) is coming under increased pressure to remain totally under Japanese ownership rather than having a foreign investor. The Japanese government is ready to support the ailing flag carrier and believes JAL can revive on its own.
JAL-Japan Airlines (Tokyo) today (July 30) will retire its last Boeing 747-300 after 26 years of faithful service. Subsidiary JALways will operate flight JO 073 between Honolulu and Tokyo (Narita). JAL added the first 747-100 in 1970 and during the 1987-1989 period it operated the world’s largest 747 Classic (747-100/200/300) fleet (65).
United Airlines (UAL Corporation) (Chicago) reported a first quarter net loss of $579 million excluding non-cash, net mark-to-market hedge gains and certain accounting charges.
Air Canada (Montreal) on July 1 will launch Vancouver-Paris (CDG) service via Montreal.
In other news, Raymond James analyst, Ben Cherniavksy, has given AC’s chance of survival as no better than 50/50. The flag carrier is facing a tight credit market and is unable to access its $400 million line of credit.
Read the full story in the Financial Post:
Korean Air (Seoul) on March 1 celebrated its 40th Anniversary of being privatized from the state-run Korean Air Lines on March 1, 1969.
Previously Korean National Airlines was reorganized and renamed Korean Air Lines on March 3, 1962.