IAG period highlights on results:
- Fourth quarter operating profit €113 million (2012: operating loss of €40 million) before exceptional items
- At constant currency and excluding Vueling and one-offs, fourth quarter passenger unit revenue up 2.7 per cent, and non-fuel unit
costs down 2.7 per cent
- Operating profit for the year to December 31, 2013 of €770 million (2012: operating loss of €23 million) before exceptional items
- Revenue for the year up 3.1 per cent to €18,675 million and passenger unit revenue for the year up 0.6 per cent (3.7 per cent at constant currency)
- Fuel costs for the year down 2.5 per cent to €5,951 million (2012: €6,101 million). Fuel unit costs down 5.0 per cent at constant currency
- Non-fuel costs before exceptional items for year down 0.7 per cent at €11,954 million. Non-fuel unit costs down 5.6 per cent, down 2.7 per cent at constant currency
- Cash of €3,633 million at December 31, 2013 was up €724 million on 2012 year end (December 2012: €2,909 million).
- Adjusted gearing down 1 point to 50 per cent
Willie Walsh, IAG chief executive, said:
“In 2013, we strengthened the Group by acquiring Vueling, embarking on Iberia’s transformation and enhancing British Airways’ revenue performance. This has led to a strong financial recovery and return to profitability with a turnaround of nearly €800 million. Our operating profit was €770 million before exceptional items, with passenger revenue up 5.8 per cent and non-fuel costs down 0.7 per cent.
“British Airways continued its solid revenue performance this year and we’re seeing cost improvements, resulting in an operating profit of €762 million. This is the first full year that it’s benefited from the additional Heathrow slots and greater network flexibility created by bmi’s integration. Both the A380 and Boeing 787 were introduced into the airline’s fleet successfully. The new aircrafts’ economic and environmental performance has been excellent and customers love them.
“Iberia has made huge progress on cost control as its restructuring takes shape and great credit should be given to all those involved. It has reduced its losses in the year, reporting an operating loss of €166 million. The recent pay and productivity agreements between Iberia and its pilot and cabin crew unions are key to reducing the airline’s costs further and providing the foundation for profitable growth.
“Vueling is a great asset and provides a new cultural dimension to IAG. The airline reported an operating profit of €168 million from April 2013, when we acquired it, and expanded its network across continental Europe. To increase capacity while improving profit margins is a tremendous achievement and underlines Vueling’s value to the Group.
“We have shown strong financial management this year. Despite buying Vueling and increasing our capital expenditure, cash was up €724 million versus last year and adjusted gearing was down 1 point to 50 per cent.
“Quarter 4 saw an improved financial performance from all our airlines and we are reporting an operating profit of €113 million before exceptional items. Passenger revenue was up 4.0 per cent and non-fuel costs were down 4.1 per cent”.
In 2014 we expect to make steady progress towards our 2015 Group operating profit target of €1.8 billion, with relatively flat unit revenue growth, and margin expansion driven by falling unit costs.
Copyright Photo: Keith Burton/AirlinersGallery.com. Vueling has been a good buy for IAG. Formerly operated by Belle Air Europe, Airbus A320-214 EI-LIS (msn 3492) has been repainted at Southend.
Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) have received a firm offer from Intro Aviation of Germany to acquire CityJet (Dublin) and VLM Airlines for an undisclosed amount. The sale is expected to be completed in the first quarter of 2014. CityJet is expected to continue to fly for Air France.
The group issued this short statement:
On December 19, 2013, Air France-KLM received a firm offer from Intro Aviation GmbH to purchase CityJet and its subsidiary, VLM.
This offer provides for an ongoing commercial co-operation with Air France as part of a new industrial plan.
Employee representative bodies of the various entities will be informed and consulted.
The transaction is expected to close in the first quarter of 2014.
Copyright Photo: Keith Burton/AirlinersGallery.com. CityJet’s BAe RJ85 EI-RJJ (msn E2347) climbs away from the runway at Southend.
CityJet’s routes from London City Airport:
Azman Air (Azman Air Services Limited) (Kano) is yet another new airline in Nigeria which is planning to launch scheduled passenger flights with two Boeing 737-300s. The company was founded in 2010 by Abdul Manafi Yunusa. Azman Air is a wholly owned Nigerian airline.
The pictured former Bmibaby Boeing 737-36N G-TOYF (msn 28557) is now painted and is the second 737. This aircraft will become 5N-YSM on delivery. The first aircraft (G-TOYH, msn 28570) is still at Norwich awaiting delivery.
This aircraft is named “Athaji Yunusa Sarina”.
Azman intends to fly mainly from Kano, Abuja and Lagos. Here is a list of domestic routes being advertised on their website:
Copyright Photo: Keith Burton/AirlinersGallery.com. Boeing 737-36N G-TOYF (5N-YSM) (msn 28557) departs from Southend on a test flight after repainting.
Discovery Air (Lagos) is another new airline in Nigeria. The first Boeing 737-300 has been painted in this bright color scheme at Southend. Former Virgin Express and Brussels Airlines Boeing 737-36N OO-VEH (msn 28571) is now registered as N571TP with Wells Fargo Bank Northwest. It is due to become 5N-BQO on delivery.
EasyJet (UK) (easyJet.com) (London-Luton) has introduced its new “Flight Tracker” service for its passengers with the latest flight information. The company issued today this statement:
EasyJet passengers can now access minute by minute updates about their flight thanks to a new Flight Tracker tool available at easyjet.com and on the easyJet app.
Flight Tracker allows customers jetting off on a summer holiday or business meeting to access live information about their flight up to 48 hours before departure and en route to the airport.
In addition to providing traditional departure and arrival information, Flight Tracker gives easyJet passengers supplementary information direct from its operation control centre at London Luton Airport. The system is believed to be an industry first, with no other airline offering information en mass at an individual flight level.
EasyJet began trialling Flight Tracker in February 2013, since then nearly 3.5 million passengers have used it to access information about flights at: www.easyjet.com/en/flight-tracker
Peter Duffy, Marketing Director for easyJet, said: “Flight Tracker is a real innovation in the aviation world and is now available to all easyJet passengers via our website, the easyJet app or their mobile device. It allows customers – and their friends and family – to gain peace of mind by checking the status of their flight en route to the airport or during periods of adverse weather or strike disruption.”
During the peak of summer Flight Tracker will monitor up to 214 easyJet aircraft as they take hundreds of thousands of holidaymakers across Europe, the Middle East and Russia. Updates can be added for one flight, all flights from a specific airport or every flight in a just a matter of seconds.
Flight Tracker is now available on the easyJet app which also allows passengers to download mobile boarding passes to their phone. The award winning app has been downloaded over 5.4 million times, with over 100,000 mobile boarding passes downloaded since May. It is available to download at http://www.easyjet.com/mobile
Copyright Photo: Keith Burton/AirlinersGallery.com. Airbus A319-111 G-EZIO (msn 2512) is the “Supporting UNICEF” special livery climbs away from Southend, easyJet’s newest London hub.
Norwegian Air Shuttle (Norwegian.com) (Oslo) has issued a new video. This video explains Norwegian’s strategy in order to stay competitive. New aircraft, a smooth organization and international expansion are mandatory to stay in business. This video contains interviews with independent sources, Norwegian’s CEO Bjørn Kjos and several employees at Norwegian.
Copyright Photo: Keith Burton/AirlinersGallery.com. Norwegian is rapidly phasing out its less efficient Boeing 737-300s. Boeing 737-36N LN-KKL (msn 28671) with Roald Amundsen on the tail departs from Southend.
Video (in Norwegian with English sub-titles):
Small Planet Airlines (formerly FlyLAL Charters) (Vilnius) is expanding its charter fleet. It is billing itself as the fastest growing charter airline in Europe. The charter airline is leasing five additional Airbus A320s. The first A320 was added in April 2011. The remaining two aging Boeing 737-300s should be retired at the end of the current summer season.
The current fleet serves the Polish charter market along with the UK, France and Lithuania. Small Planet Airlines works with the major tour operators to bring holiday travelers to Greece, Spain, Turkey, Egypt and other sunny destinations. The company also charters flights for the government, sport teams and private customers.
Top Copyright Photo: Keith Burton. Formerly operated by Air Astana, Airbus A320-232 P4-UAS is becoming LY-SPB (msn 2987) with Small Planet. All other images and photos below from Small Planet.
Thomas Cook Group (London) today (May 1) merged the flight operations of subsidiary Condor Berlin (Berlin) into Condor Flugdienst (Frankfurt). This move is part of the group’s new strategy to streamline operations and to reduce the amount of its subsidiaries. Condor Berlin will continue to operate as a maintenance company in Berlin. The 12 Airbus A320s and 1 A321 of Condor Berlin are now being operated by Condor Flugdienst. All aircraft operate under the Condor and Thomas Cook brand.
Copyright Photo: Keith Burton. Airbus A320-212 D-AICH (msn 971) is pictured at Southend.
Video: A cockpit view of a Condor Airbus A320:
Allegiant Travel Company (Allegiant Air) (Las Vegas) reported the following financial results for the first quarter 2013:
|Total operating revenue (millions)||$273.0||$237.9||14.8%|
|Operating income (millions)||$52.4||$36.3||44.2%|
|Net income (millions)||$31.9||$21.7||47.1%|
|Diluted earnings per share||$1.65||$1.12||47.3%|
“We are very proud to report our 41st consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. ”The month of March is typically our busiest month of the year, and this year was no different. Thanks to the tireless efforts of our Team Members, we have had another profitable quarter.”
Notable company quarterly highlights
- Began flying our first A319 on March 1, 2013, the second A319 on April 4, 2013
- Repurchased over 284,000 shares for $22.2 million dollars, average purchase price of $78.15
- Received board approval to increase share repurchase authority to $100 million
- Completed the 166 seat MD-80 conversion project in February
- Added two new small cities Provo, UT and Reno, NV
- Added eight routes in the quarter
- Announced five routes which will start in the second quarter, including one new city, Little Rock, AR
- Operated 198 routes in the first quarter of 2013. Expect to operate 203 routes in the second quarter of 2013
First quarter 2013 revenue performance
- 13th consecutive quarter of year over year increases in total average fare
- First quarter 2013 average fare, average ancillary air per passenger, and total fare were the highest in the company’s history
- First quarter TRASM increased by 1.2 percent even though we increased average scheduled service stage length by 4.9 percent and scheduled service ASMs grew by 17 percent
- Load factor returned to a normalized rate closer to 90%
- Same store markets, those which were operated in the first quarter 2012 and 2013, had a 4.3 percent TRASM increase versus the system average of 1.2 percent
- Fixed fee revenue’s decline is attributable to no longer operating two aircraft in track charter programs as previously disclosed
|Average fare – scheduled service||$97.54||$94.95||2.7%|
|Average fare – ancillary air-related charges||$41.64||$32.39||28.6%|
|Average fare – ancillary third party products||$5.81||$5.36||8.4%|
|Average fare – total||$144.99||$132.70||9.3%|
|Scheduled service passenger revenue per ASM (PRASM) (cents)||8.60||9.04||(4.9)%|
|Total scheduled service revenue* per ASM (TRASM) (cents)||12.79||12.64||1.2%|
|Average passengers per departure||148||138||7.2%|
|Average scheduled service stage length (miles)||978||932||4.9%|
* Total scheduled service revenue includes scheduled service, ancillary air-related charges, and ancillary third party products revenue.
ASMs = available seat miles
PRASM = scheduled passenger revenue per scheduled available seat mile
First quarter 2013 cost performance
- Operating CASM, excluding fuel increased only 0.2 percent to 5.18 cents despite an almost eight percent decrease in aircraft utilization for the same time period due to a higher concentration of flying during peak periods
- Operating expense per ASM decreased by three percent even though our average fuel expense per gallon increased by three percent. System ASMs per gallon of fuel improved to 67.3; a 9.6 percent increase versus the first quarter 2012
- Maintenance and repairs expense per passenger decreased by 19.2 percent due to a more normalized rate of engine overhaul expense compared to unusually high levels in the first quarter of 2012
- Salary and benefits expense per passenger increased by 18.4 percent due mainly to increases in pilot compensation. As we reached a trailing twelve month operating margin of 14 percent in November of 2012, our pilots moved into a higher pilot pay rate band per our compensation agreement with our pilot work group. Additionally, higher flight attendant headcount resulting from the increased gauge of our MD-80 aircraft and operating six 757 aircraft as opposed to one during the first quarter 2012
- Depreciation and amortization per passenger increased 35 percent primarily due to accelerated depreciation from the announced retirement of six MD-80s from first quarter 2013 through third quarter 2013, along with higher depreciation stemming from 51 converted 166 seat MD-80s at the end of the quarter versus 17 a year ago
- Other expense per passenger increased 35 percent primarily attributable to a higher write-down of engine values in our consignment program
|Operating expense per passenger||$117.31||$112.03||4.7%|
|Operating expense per passenger, excluding fuel||$59.62||$55.10||8.2%|
|Operating expense per ASM (CASM) (cents)||10.20||10.52||(3.0)%|
|Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)||5.18||5.17||0.2%|
|Average block hours per aircraft per day||5.9||6.4||(7.8)%|
* Total system includes scheduled service, fixed-fee contract and non-revenue flying.
Second quarter 2013 cost trends
- Salary and benefit expense is still subject to the same pressures as in the first quarter including the higher pilot pay band in effect
- We expect the bulk of the engine and heavy airframe maintenance for the year will be incurred in the second and third quarters. For the full year, we are still anticipating maintenance per aircraft per month to be between $100 thousand and $110 thousand which has been our normalized historical run rate
- Second quarter depreciation expense will still feel the impact of the accelerated depreciation reflected in the first quarter and to a lesser extent the higher depreciation from the converted 166 seat MD-80s as we had converted 27 aircraft by the end of June 2012. Four of the MD-80s driving the bulk of the accelerated depreciation are scheduled to be retired in the third quarter of 2013. In addition, we are expecting higher depreciation in the fourth quarter as we are currently expecting to place seven A320s into service by the fourth quarter of 2013.
Copyright Photo: Keith Burton. Allegiant introduced the first Airbus A319 into operations on March 1. The second was introduced on April 4. The former easyJet (Switzerland) A319-111 HB-JZN became N302NV (msn 2387) when it was delivered on February 11, 2013. The airliner is leased from GECAS.
Sunwing Airlines (Toronto) issued this statement yesterday:
Sunwing Airlines confirms that its flight 326 en route from Ottawa International Airport to Varadero, Cuba departed at 6:32 am. Approximately 5 minutes after takeoff, the aircraft interior filled with vapor from glycol (de-icing fluid) that entered the aircraft through the auxiliary power unit (APU) vent.
The captain made the decision to return to the Ottawa airport and the aircraft landed without incident. As the vapor had dissipated by that point, the aircraft returned to the gate where all of the passengers and crew disembarked.
At this time, investigations are ongoing to determine how the glycol entered the aircraft through the APU vent. Ottawa International Airport has a centralized de-icing facility that is operated by Aeromag 2000 Ottawa Inc. All Aeromag employees are trained on the safe application of de-icing fluid, which includes avoiding excess spraying on certain areas of the aircraft.
Sunwing Airlines rebooked passengers on a flight that will be departed Ottawa later at 12:35 pm.
Copyright Photo: Antony J. Best.
Czech Airlines-CSA (Prague) will have a new airline partner. The Czech government has approved Korean Air‘s (Seoul) $3.4 million offer to acquire 44 percent of the stock of state-owned Czech Airlines.
Read the full report from The Financial Times: CLICK HERE
Copyright Photo: Keith Burton. Airbus A320-214 OK-GEB (msn 1450) departs from Southend.
Allegiant Travel Company (Allegiant Air) (Las Vegas) today announced its proposed transaction to acquire ten Airbus A319 aircraft from Cebu Pacific Air has been terminated as a result of the parties’ failure to satisfy certain conditions to proceeding with the transaction. The potential transaction was made public on July 30, 2012 after the signing of the letter of intent.
“We are disappointed that we were not able to finalize this agreement on which we spent a substantial amount of time and effort,” said Andrew C. Levy, Allegiant President. “Unfortunately we were unable to come to terms on some of the economic provisions of the transaction and as we have demonstrated in the past, we will not purchase aircraft just for the sake of growth. Our disciplined approach in asset purchases is a core competency that we will not compromise.”
“We continue to have fleet flexibility in 2013 even without the Cebu A319s. Seven of the nine A320 aircraft, which we announced the intention to acquire on December 19, 2012, are expected to be delivered in 2013 and we now plan to introduce these aircraft into service at a faster pace so as to offset the capacity that had been planned with the Cebu A319s,” concluded Levy.
Allegiant is now expecting 2013 total CAPEX to be between $170 and $180 million. The company has signed operating leases for nine A319 aircraft with GECAS and purchase agreements for nine A320 aircraft formerly operated by Iberia. Allegiant will remain active in the market for the purchase or lease of additional Airbus aircraft.
Copyright Photo: Keith Burton. The first Airbus A319 for Allegiant is seen at Southend before it was delivered.
Allegiant Travel Company (Allegiant Air) (Las Vegas) has announced its intention to purchase up to nine used Airbus A320 aircraft. The average age of these aircraft at delivery is expected to be 12 years with a configuration of 177 seats. The aircraft have been most recently operated by Iberia.
“The A320 aircraft type is a perfect complement to the smaller A319 and will enable us to continue cost effective growth for years to come,” said Andrew C. Levy, Allegiant President. “These transactions represent a tremendous opportunity to purchase a sizeable fleet of sister-ships with CFM powered engines, the same engine type as our A319s, at very attractive prices. Finding up to nine aircraft of this pedigree available for purchase is unusual in our experience. Historically it has been difficult to find owners willing to sell quality assets at this point in their life cycle. Our cash reserves and strong balance sheet continue to provide us a unique ability in the used aircraft space to move on these attractive opportunities.”
“We do not expect a material change to our 2013 capacity as we will vary MD-80 utilization appropriately. As with the earlier acquisition of A319s, we are committed to only acquire aircraft at values that support our existing business model of relatively low fleet utilization,” concluded Levy.
Seven aircraft are expected to be purchased in 2013 and two in 2014. With the addition of this transaction, Allegiant is now expecting 2013 total CAPEX to be between $270 and $280 million versus the previous guidance of $150 to $160 million. The company expects to finance the purchase of these aircraft with debt. Allegiant expects to place the first A320 into service late in the third quarter of 2013 and all nine aircraft are expected to be in service by the end of 2014. No additional MD-80 retirements are planned as a result of this transaction.
As long as Allegiant Air can acquire second-hand Airbus aircraft it is unlikely to add any more older McDonnell Douglas MD-80s.
Copyright Photo: Keith Burton. The A320s will complement the smaller Airbus A319s being added to the fleet. Former easyJet Switzerland Airbus A319-111 HB-JZK (msn 2319) became N301NV with Allegiant.
Air Astana (Almaty), Kazakhstan’s flag carrier, has taken delivery of its first A321 (PR-KDA, msn 5357) out of a total of six A320 Family aircraft ordered from Airbus in May 2008. The delivery was celebrated in Astana, the capital of Kazakhstan. The aircraft will join Air Astana’s fleet, which already includes 10 A320 Family aircraft, operated on the airline’s domestic and international network.
The airline’s A321, powered by IAE V2500 engines, features a two class cabin layout, seating 28 passengers in business class and 151 in economy.
Air Astana started commercial service with its first Airbus aircraft, an A320, in 2006, and is currently operating one A319, seven A320s and two A321s.
Copyright Photo: Keith Burton. The pictured Airbus A321-231 PR-OAS (msn 1204) was leased from Tombo on May 11, 2007.
EasyJet (UK) (London-Luton) is a big supporter of UNICEF – United Nations Children’s Fund. According to Wikipedia, UNICEF was created by the United Nations General Assembly on December 11, 1946, to provide emergency food and healthcare to children in countries that had been devastated by World War II. In 1954, UNICEF became a permanent part of theUnited Nations System.
The company previously issued this statement of its support of UNICEF and its “Change for Good” program:
In 2012 easyJet formed a partnership with UNICEF the world’s leading organization for children.
The partnership runs across easyJet’s pan-European network during the peak summer and winter seasons, reaching out to the airline’s 55 million passengers who travel on the airlines’ 200 aircraft on over 600 routes across 30 countries.
The program branded Change for Good offers all our customers the chance to support the world’s children simply by dropping their spare change into specially designed pouches, which are handed out by easyJet’s crew during flights.
The money raised through donations from easyJet customers will fund UNICEF’s life-saving work for children across the world, such as vaccinating children at risk from diseases such as measles and polio or providing mosquito nets to prevent malaria.
The new partnership, which will operate for an initial three year period, will form part of UNICEF’s global Change for Good initiative, which has raised millions of pounds for the world’s most vulnerable children through partnerships with leading airlines across the globe.
For more information about UNICEF visit: http://www.unicef.org.uk/
Donate to UNICEF’s work for children: http://www.unicef.org.uk/Donate/Donate-Now/
Copyright Photo: Keith Burton. The pictured Airbus A319-111 registered as G-EZIO (msn 2512) was rolled out of the paint shop this morning (November 18) at Southend Airport near London in this special color scheme.
Allegiant Air‘s (Las Vegas) first Airbus A319 has been painted at Southend awaiting delivery.
In other news, the low-fare airline has cancelled all plans to operate Monterey-Honolulu service according to Airline Route.
On the financial side, the parent company issued the following statement for the third quarter:
Allegiant Travel Company has reported the following financial results for the third quarter 2012 as well as comparisons to prior year equivalents:
|Total operating revenue (millions)||$216.9||$191.5||13.2%|
|Operating income (millions)||$28.7||$16.7||71.8%|
|Net income (millions)||$16.9||$9.5||78.6%|
|Diluted earnings per share||$0.87||$0.49||77.6%|
“We are very proud to report our 39th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. ”I`d like to thank our Team Members for their great efforts and contributions to another successful quarter. The third quarter is typically our weakest quarter of the year, and yet we were able to produce the highest third quarter earnings per share in the company`s history. This is particularly noteworthy to have done this in a quarter with the average oil price at $92 per barrel and in a demand environment that has been slightly weaker than historical norms.”
Notable company highlights
- Entered into a lease agreement with GECAS for nine Airbus A319 aircraft on August 27
- Announced intention to acquire ten Airbus A319 aircraft from Cebu Pacific Air on July 30
- Announced service to Honolulu from Boise, Idaho, Phoenix and Spokane, Wash. to begin in early February 2013
- Announced the formation of Allegiant Systems, a joint venture with AvIntel and Lixar IT to develop and market a wide variety of mobile technology services to the commercial aviation industry
- As of October 23, we have converted 40 MD-80s to 166 seat aircraft
- Announced fifteen routes, in addition to Hawaii, expected to begin in the fourth quarter of 2012
- Average fare – ancillary air-related revenue per passenger has grown to $37.05 in the third quarter 2012, a $4.66 increase since the first quarter 2012
- September average fare – ancillary air-related revenue per passenger has grown to $38.08, a $5.48 increase since March 2012
- 11th consecutive quarter of year over year increases in total average fare
|Average fare – scheduled service||$82.30||$84.94||(3.1)%|
|Average fare – ancillary air-related charges||$37.05||$30.38||22.0%|
|Average fare – ancillary third party products||$5.59||$5.31||5.3%|
|Average fare – total||$124.94||$120.63||3.6%|
|Scheduled service passenger revenue per ASM (PRASM) (cents)||7.89||8.58||(8.0)%|
|Total scheduled service revenue* per ASM (TRASM) (cents)||11.98||12.19||(1.7)%|
|Average passengers per departure||143||136||5.1%|
* Total scheduled service revenue includes scheduled service, ancillary air-related, and ancillary third party revenue.
Copyright Photo: Keith Burton. Formerly operated by easyJet (Switzerland), Airbus A319-111 HB-JZK (msn 2319) is the first A319 for Allegiant Air. It is pictured after painting at a Southend, near London. The airframe will become N301NV on delivery.
Estonian Air introduces a new “Fly to Estonia” logoplane, will retire the last Boeing 737-500 on October 21
Estonian Air (Tallinn) has repainted its SAAB 340B ES-ASO (msn 223) from the “Hockeybird” to a special “Fly to Estonia” livery to promote winter travel to the country. The first flight from Tallinn in the new design was completed on October 11 and the special livery will stay until the end of this year.
The aircraft will operate from Tallinn to Vilnius, Helsinki, Joensuu, Jyväskylä, St Petersburg and Tartu.
The airline issued the following statement:
In the framework of an ongoing co-operation between Estonian Air and EAS (Enterprise Estonia), one of the SAAB 340 aircraft in Estonian Air fleet was given a special livery to attract tourists from the regional destinations of Estonian Air to spend winter holidays in Estonia. This is a continuation of the marketing campaign carried out in October in Lithuania, Russia, Finland, Sweden and Norway, promoting the possibilities of spending winter holidays in Estonia.
“EAS and Estonian Air have common goals – to be visible on world map, bring a lot of foreign tourists to Estonia and do so in a special way. This beautiful aircraft design is a good example of co-operation between domestic organisations,” says Marketing Director of the Estonian Tourist Board at Enterprise Estonia, Tarmo Mutso.
“Research shows that aircraft is the advertising channel with the highest level of message recall, i.e. people recall afterwards not only the medium of the advertisement but even the message itself”, explains Gunnar Mägi, head of marketing and development in Estonian Air. “Since European airports enjoy a very high concentration of people, I am confident that our invitation will not go unnoticed”, he added.
In other news, the company will retire the last Boeing 737-500 on October 21 when the assigned aircraft completes a round trip between Tallinn and Paris (CDG) per Airline Route.
Top Copyright Photo: Estonian Air.
Bottom Copyright Photo: Keith Burton. Boeing 737-53S ES-ABH 9msn 29074) climbs away from Southend.
Arik Air (Arik Wings of Nigeria) (Lagos) yesterday (September 23) according to Bloomberg Businessweek resumed domestic operations after a dispute was resolved with the Federal Airports Authority of Nigeria union. The union had blocked aircraft gates on September 20 at Lagos due to unpaid bills. International flights to west Africa, London, New York and Johannesburg were not impacted.
Read the full report: CLICK HERE
Copyright Photo: Keith Burton. Former Aloha Airlines Boeing 737-76N WL N742AL (msn 30830) became 5N-MJK with Arik Air.
Domestic routes from Lagos:
Starbow Airlines (Accra) launched its first international route on August 13 from Accra to Cotonou, Benin.
Starbow is commencing Cotonou services with five flights per week but this service is expected to increase to daily flights within weeks. The nonstop flights will take 45 minutes only, thus reducing the travel time dramatically.
Copyright Photo: Keith Burton. BAe 146-300 9G-SBB (msn E3123) is seen at Southend before delivery to Africa.
Icelandair reports a second quarter net profit of $14.3 million, considers acquiring additional aircraft types
Icelandair Group (Icelandair) (Keflavik) reported a second quarter net profit of $14.3 million.
In addition, in its report, the group stated it is looking at its fleet options with a long-term fleet strategy. Here is the official statement:
TWO OPTIONS CURRENTLY UNDER CONSIDERATION
- | Work in progress on a long-term strategy for Icelandair Group’s fleet
- | The work done in close co-operation with the manufacturers Boeing and Airbus
- | Other aircraft manufacturer are also being monitored
- | A decision on the future fleet will be made in near future
- | Options being evaluated:
Option 1: Single fleet of Boeing 757 aircraft until 2022
Option 2: Mixed fleet of Boeing 757 and smaller aircraft
Read the full report: CLICK HERE
Copyright Photo: Keith Burton. Besides utilizing its Boeing 757 fleet for scheduled passenger and charter operations, the flag carrier also operates the Boeing 757 as a freighter. Icelandair Cargo Boeing 757-23A PCF TF-FIG (msn 24456) climbs away from Southend with its additional “Absolutely Fresh” titles and logo for its fish-hauling operations.
Sunwing Airlines (Toronto-Pearson) is adding new service from Alberta this winter with new flights from Fort McMurray and Grande Prairie with weekly Wednesday flights to Puerto Vallarta and Riviera Nayarit in Mexico with departures starting on December 19, 2012 through March 20, 2013.
Copyright Photo: Keith Burton. Boeing 737-8Q8 C-FTAE climbs away from Southend.
OLT Express (Poland) (Warsaw) ended charter operations on July 31. Previously the airline ended scheduled operations on July 26. The fleet has been returned to the owners and put into storage.
Copyright Photo: Keith Burton. Airbus A319-111 SP-IBC (msn 2460) departing from Southend was one of two A319s operated by the Polish airline.
Czech Airlines-CSA (Prague) went into the red in 2011 with a pre-tax loss of $11.8 million. The airline blamed the loss on aircraft commitments and higher fuel costs.
The airline issued the following statement:
“The second year of Czech Airline’s three-year restructuring plan was marked primarily by the continued reorganisation of the company, transformations in its transport network model, and cost optimisation. Last year the airline was impacted by financial leasing obligations for aircraft ordered in the past, and a significant increase in fuel costs. Last year Czech Airlines transferred its subsidiaries Czech Airlines Handling, CSA Services, and HOLIDAYS Czech Airlines to Czech Aeroholding. The money that the airline obtained through these transactions was used to pay instalments on aircraft. This means that Czech Airlines invested nearly a billion crowns into its future assets last year. The airline finished the 2011 financial year with an aggregate loss of CZK 241 million.
Phase two of Czech Airline’s on-going restructuring influenced the airline’s financial results for last year. Czech Airlines continued its human resources optimisation and the optimisation of its sales and transport networks, with corresponding gradual changes in its fleet structure. “Last year Czech Airlines managed to reduce its personnel costs by nearly one third, year on year, and in terms of its fleet size, it is returning to a state that corresponds to the transport network and market potential of a small local market. The structural changes in the transport network unfortunately did not have enough time to fully manifest themselves in last year’s financial results, whether in terms of revenue or costs,” explains Philippe Moreels, Chairman of the Management Board and President of Czech Airlines, adding: “Financial obligations for aircraft ordered in the past had an adverse impact on our financial results. Last year alone Czech Airlines had to invest nearly a billion crowns that it obtained from the sale of assets into new aircraft.”
A significant increase in the price of aircraft fuel also had an adverse impact on the airline’s finances last year. In spite of the planned decrease in aircraft movements by nearly one fifth last year, Czech Airlines noted a nearly 40% year-on-year increase in fuel costs. “The same trend was manifest in the first four months of this year. Although on the revenue side, certain other positive effects of the gradual transformation of the transport and sales network are beginning to show, the increase in fuel costs has nearly eliminated them, at least in the first four months of the year. In its last, third year of restructuring, Czech Airlines will therefore focus even more on reducing its costs, primarily fixed costs, and will also enhance some of its modern pro-revenue projects,” concludes Philippe Moreels.”
|Item||2011 (in CZK ‘000)||2010 (in CZK ‘000)|
|Total revenue||16 905 211||21 518 307|
|Sales of fixed assets and material||876 271||2 694 502|
|Total costs||17 146 567||21 442 148|
|Equity||108 226||376 367|
|Share capital||5 235 510||5 235 510|
|Profit/loss before tax||-241 356||76 159|
Copyright Photo: Keith Burton.
Iceland Express (Astraeus) Boeing 757-2Q8 G-STRX (msn 25621) SEN (Keith Burton), originally uploaded by Airliners Gallery.
Iceland Express (Keflavik) is planning to add Boston and Chicago (O’Hare) for the summer season 2011.
Copyright Photo: Keith Burton. Astraeus’ Boeing 757-2Q8 G-STRX (msn 25621) departs Southend after maintenance.
AIRES Colombia’s (Bogota) ex-easyJet Boeing 737-73V HK-4682 (msn 32416) while operating flight 8250 from Bogota crashed on landing this morning in stormy weather at San Andres Island. One person has died and at least 114 people were injured. The aircraft broke up and was destroyed.
Click on link below for further details:
Copyright Photo: Keith Burton. HK-4682 is seen at Southend before it departed on delivery.
Iceland Express (Astraeus) Boeing 757-2Q8 G-STRX (msn 25621) SEN (Keith Burton), originally uploaded by Airliners Gallery.
Iceland Express (Keflavik) starts weekly flying to Florida from Reykjavík (Keflavik) starting on October 2 when it adds Orlando. However the seasonal run will only last for the month with the last scheduled flight due to be on October 23. The flights will be operated by Astraeus Airlines.
The Newark flights have been extended by an extra two months, until the end of October.
Copyright Photo: Keith Burton. Astraeus’ Boeing 757-2Q8 G-STRX (msn 25621) departs from Southend after some maintenance work.
Sun Country Airlines Boeing 737-73V G-EZJJ (N711SY) (msn 30245) SEN (Antony J. Best), originally uploaded by Airliners Gallery.
Sun Country Airlines (Minneapolis/St. Paul) announced today (June 30) plans for new nonstop domestic and international service from Lansing’s Capital Region International Airport. Beginning December 22, 2010, the company will inaugurate domestic service to Las Vegas, Ft. Myers and Orlando as well as international service to Cancun, Mexico and Montego Bay, Jamaica.
Copyright Photo: Antony J. Best. Ex-easyJet Boeing 737-73V G-EZJJ (msn 30245) became N711SY on delivery.
Cobham Aviation Services (Australia) (formerly National Jet Systems) (Adelaide) is ready to import this ex-BA CityFlyer BAe RJ100 registered G-BZAW (msn E3354). It will be the first RJ100 registered in Australia.
Aerolineas Argentinas Boeing 737-73V N385DF (msn 30236) SEN, originally uploaded by Airliners Gallery.
Aerolineas Argentinas (Buenos Aires) has now taken delivery of ex-easyJet Boeing 737-73V G-EZJB (msn 30236). The airliner is pictured departing from Southend as N385DF on November 27.
Copyright Photo: Keith Burton.
Olympic Air (3rd) (Athens) will take over as the new Greek flag carrier on September 29. Outgoing Olympic Airlines (2nd) (Athens) will operate its last flights on September 28.
Bangkok Air’s (Bangkok) Airbus A319-132 HS-PGS (msn 3142) arrived at Southend with the new registration marks of M-ABCL from the Isle of Man. The airliner is due to go to a new operator.
Ukraine International Airlines (Kiev) will add Abu Dhabi and the Kiev-Abu Dhabi route on September 25.
S7 Airlines (Moscow) is expected to become the 11th member of the Oneworld Alliance. The Russian carrier will soon start the integration process. Rival Aeroflot Russian Airlines is a member of the SkyTeam Alliance.
The Czech government has narrowed the potential winning bidder for stated-owned Czech Airlines-CSA (Prague) down to two bidders – Air France-KLM and the Czech consortium of Unimex-Travel Service Airlines (Prague). The government wants to sell its 91.5 percent stake in the flag carrier. Czech Airlines is a fellow member of the SkyTeam Alliance with Air France-KLM. Aeroflot Russian Airlines has been eliminated from the bidding.
First Flight Couriers’ (Mumbai) two ATP freighters have returned to Southend and were put into storage.
The SAS Group (Stockholm) is planning to pump in $9.24 million for Estonian Air (Tallinn) to improve the liquidity of the flag carrier. This comes as SAS has previously stated it would like to divest its 49 percent share of the company.