The Lion Air families are briefed on the Boeing 737 MAX crash by Indonesian authorities

From Reuters:

Mechanical and design issues contributed to the crash of a Lion Air 737 MAX jet according to Reuters reporting on a briefing by Indonesian investigators for the victims’ families ahead of the release of the report.

A final report will be released on Friday.

Read the full Reuters report.

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Reuters: Oman considers setting a n ew regional carrier

Oman is considering setting up a new regional carrier to take over domestic operations from state carrier Oman Air according to Reuters.

Hawaiian Holdings reports its 2019 third quarter financial results

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the third quarter of 2019.

Third Quarter 2019 – Key Financial Metrics
   

GAAP

 

YoY Change

 

Adjusted

 

YoY Change

Net Income  

$80.1M

 

($13.5M)

 

$81.5M

 

($15.2M)

Diluted EPS  

$1.70

 

($0.14)

 

$1.72

 

($0.19)

Pre-tax Margin  

14.4%

 

(1.0) pts.

 

14.6%

 

(1.3) pts.

“Our team did a fantastic job this quarter, demonstrating once again that Hawaiian Airlines is the carrier of choice for guests traveling to, from and within the Hawaiian Islands,” said Peter Ingram, Hawaiian Airlines president and CEO. “In the face of heightened competition, we delivered strong financial results and made significant progress towards accomplishing the strategic priorities that we established at the beginning of the year.  As we enter the home stretch of 2019, we look forward to continuing to execute our proven formula for generating value for our guests and our investors.  I extend my thanks, as always, to my 7,300 colleagues for their tireless efforts to deliver award-winning, authentic Hawaiian hospitality every day.”

Statistical information, as well as a reconciliation of the non-GAAP financial measures, can be found in the accompanying tables.

 

Shareholder Returns, Liquidity and Capital Resources

The Company returned $25.7 million to shareholders in the third quarter through share repurchases of $20.0 million and a dividend payment of $5.7 million.

On October 18, 2019, the Company’s Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on November 29, 2019 to all shareholders of record as of November 15, 2019.

As of September 30, 2019, the Company had:

• Unrestricted cash, cash equivalents and short-term investments of $745 million

• Outstanding debt and finance lease obligations of $782 million

 

Third Quarter 2019 Highlights

Leadership and People

• Appointed Robin Kobayashi as interim Senior Vice President of Human Resources.

Operational

• Ranked #1 nationally for on-time performance year-to-date through August 2019, as reported in the U.S. Department of Transportation Air Travel Consumer Report, adding to its record of 15 consecutive years as the most punctual airline.

• Implemented Amadeus’ Departure Control Flight Management to optimize load planning and improve operational efficiency.

Products and Services

• In September and October, launched sales of Main Cabin Basic fares in all North American markets, enhancing Hawaiian’s product portfolio with a fare option that appeals to the most price-conscious travelers.

Routes and Network

• Received final U.S. Department of Transportation approval to operate one additional daily nonstop flight between Tokyo Haneda Airport (HND) and Honolulu Daniel K. Inouye International Airport (HNL) starting in March of 2020.

• Announced service for three new routes with its A321neo fleet:

◦ Four-times-weekly service between Maui’s Kahului Airport (OGG) and Las Vegas’ McCarran International Airport (LAS) beginning December 15, 2019

◦ Thrice-weekly nonstop service between Honolulu (HNL) and Seattle-Tacoma International Airport (SEA) starting January 7, 2020, supplementing existing daily A330-200 service

◦ Seasonal winter service between Maui (OGG) and Los Angeles International Airport (LAX) from December 14, 2019 through January 5, 2020, supplementing existing daily A330-200 service

Fleet & Financing

•     Took delivery of two Airbus A321neo aircraft, increasing the size of its A321neo fleet to fifteen aircraft.

•     Entered into two Japanese Yen-denominated debt financings, collateralized by four Airbus A330 aircraft and two Airbus A321neo aircraft.

•     Extended the leases on three A330 aircraft, enabling cost savings while maintaining fleet flexibility for future growth.

Fourth Quarter and Full Year 2019 Outlook

The table below summarizes the Company’s expectations for the fourth quarter ending December 31, 2019, and the full year ending December 31, 2019, expressed as an expected percentage change compared to the results for the quarter and the full year ended December 31, 2018, as applicable.

   

Fourth Quarter

     

GAAP Fourth Quarter

Item  

2019 Guidance

  GAAP Equivalent  

2019 Guidance

ASMs  

Up 3.0 – 4.5%

       
Operating revenue per ASM  

Down 0.5 – 3.5%

       
Cost per ASM excluding fuel and non-recurring items (a)  

Up 0.5 – 3.5%

  Cost per ASM (a)  

Down 0.1 – 2.5%

Gallons of jet fuel consumed  

Up 0.5 – 2.5%

       
Economic fuel cost per gallon (b)(c)  

$2.02

  Fuel cost per gallon (b)  

$1.98

 

   

Full Year

     

GAAP Full Year

Item  

2019 Guidance

  GAAP Equivalent  

2019 Guidance

ASMs  

Up 1.9 – 2.4%

       
Cost per ASM excluding fuel and non-recurring items (a)  

Up 1.8 – 2.6%

  Cost per ASM (a)  

Down 2.3 – 2.9%

Gallons of jet fuel consumed  

Down 1.0 – 1.5%

       
Economic fuel cost per gallon (b)(c)  

$2.05

  Fuel cost per gallon (b)  

$2.00

(a) See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items.

(b) Fuel cost per gallon estimates are based on the October 10, 2019 fuel forward curve.

(c) See Table 3 for a reconciliation of GAAP fuel costs to economic fuel costs.

Hawaiian Airlines aircraft photo library:

KLM recycles PET bottles into tools

KLM Royal Dutch Airlines has made this announcement:

KLM Royal Dutch Airlines is the first airline in the world to recycle PET bottles to make tools for repairing and maintaining its aircraft.

Empty bottles are collected at the end of every flight and transformed into filament, the material used in 3D printers. This process means an empty water bottle can end up as part of a 3D-printed piece of equipment that saves Engineering and Maintenance time and money.

In the same way normal printers use ink, 3D printers need filament to print with. KLM used to buy this material from external suppliers. But now empty PET bottles from its flights are delivered to a recycling company in exchange for high-quality plastic pellets, which are the main material in filament. The tons of plastic bottles that are taken off aircraft at Amsterdam Airport Schiphol every year are recycled into this filament. 

3D printers at E&M

KLM Engineering and Maintenance has been using 3D printers for quite some time in ways that speed up repair and maintenance processes. For example, special plugs have been developed to ensure that rim holes don’t get painted over when the wheels on Boeing 737s are painted.

Protective tape is no longer used at Engine Services during the maintenance of turbine blades. It has been replaced by a 3D-printed cover. And the tool Engine Services designed for removing overhead baggage bins on board the Boeing 787 means this task can now be carried out by one mechanic instead of two.

Lower cost of filament 

E&M currently uses around 1.5 kg of high quality filament every day. Because KLM now supplies PET bottles as a raw material, the cost of this filament has dropped from EUR 60/kg to just EUR 17/kg. By working with the recycling company Morssinkhof Rymoplast and the filament manufacturer Reflow, KLM is now able not only to be innovative in its use of 3D printing, but also to make the process circular.

Reduce waste 

KLM aims to reduce the volume of its waste by 50% in 2030, compared to 2011 levels. This will be achieved by producing less waste overall and increasing the amount that can be recycled. In 2018, KLM reduced waste by 9% and 28% of what remained was recycled.

 

Ethiopian to resume service to Athens

Ethiopian Airlines has announced the resumption of its flight to Athens, Greece effective December 13, 2019.

Ethiopian has resumed the service to the city of Athens after 18 years. Athens marks Ethiopian’s 20th destination in Europe.

The thrice weekly flight to Athens will be operated by the Boeing 787 Dreamliner.

The flight to Athens is per the below schedule:

page1image48668928

Flight Number

Frequency

Departure Airport

Departure Time

Arrival Airport

Arrival Time

page1image50340832

Sub fleet

ET 0760

page1image48656960

Mon, Wed, Fri

ADD

page1image48658304

23:45

page1image50340720

ATH

03:45

page1image48718848

ET 788

page1image48719424

…….

ATH

04:50

DME

09:05

ET 788

ET 0761

page1image48642304

Sat

DME

page1image48349760

18:05

page1image50421184

ATH

20:20

page1image48351872

ET 788

page1image48353216

…….

ATH

00:20

ADD

06:30

ET 788

ET 0761

Tue, Thu, Sat

DME

21:05

ATH

23:20

page1image48358784

ET 788

…….

ATH

00:20

ADD

06:30

page1image48363200

ET 788

ET 0761

Tue, Thu, Sat

DME

21:05

ATH

23:20

page1image48236800

ET 788

…….

ATH

00:20

ADD

07:20

page1image48243712 page1image50647200

ET 788

Air New Zealand to fly nonstop to New York from Auckland

Air New Zealand is accelerating its ambitions for North America and will launch a nonstop service between Auckland and New York using its Boeing 787-9 Dreamliner in October 2020.

To direct capacity to faster-growing markets, the airline has also made the difficult decision to withdraw from its daily Los Angeles-London service from October 2020.

Air New Zealand Acting Chief Executive Officer Jeff McDowall says while it’s hard to farewell such an iconic route, the airline must remain focused on markets with the greatest opportunity for long-term profitable growth.

Air New Zealand will fly between Auckland and its alliance partner United Airlines’ New York hub Newark Liberty International Airport three times weekly, year-round, using its latest configuration Boeing 787-9 aircraft.

London decision

Los Angeles-London has been a flagship route for Air New Zealand and an important link connecting New Zealand and Europe since its launch in 1982, however Mr McDowall says market dynamics have affected performance in recent years.

Mr McDowall says the hardest aspect of the decision is the impact on Air New Zealand’s people who’ve worked incredibly hard to build the route and to achieve the highest customer satisfaction levels across the airline’s international network.

Los Angeles-London will operate as scheduled until October 2020 and no tickets have been sold beyond this date. Air New Zealand has chosen to announce the withdrawal more than a year in advance to allow time to support its people and to avoid any impact to customers booked to travel.

Europe, including the UK, remains a significant sales region for Air New Zealand. Currently more than two thirds of revenue generated by its London team is unrelated to the Atlantic route and the airline will retain a sales, marketing and cargo presence in London to serve this important market, including after the cessation of its Los Angeles-London service.

 

WestJet to add more Boeing 787 Dreamliner service in 2020

WestJet Airlines Boeing 787-9 Dreamliner C-GURP (msn 64975) YYZ (TMK Photography). Image: 947972.

WestJet today announced its guests in Calgary, Vancouver and Toronto will benefit from more domestic and transatlantic 787-9 Dreamliner service for summer 2020, giving the airline’s guests more opportunity to experience WestJet’s new Business Premium and Economy cabins on the state-of-the-art aircraft.

Dreamliner schedule highlights:

  • Earlier Dreamliner service between London, Gatwick and Calgary, operating daily as of April 14, 2020.
  • Year-round daily service between Toronto and London, Gatwick on the Dreamliner.
  • Daily seasonal summer Dreamliner service between Vancouver and London, Gatwick commences on April 26, 2010.
  • Domestic year-round 787 service between Calgary and Toronto beginning in June.
  • Transatlantic Dreamliner service between Paris and Calgary resumes March 12, 2020.

Photo: Adrian Edwards.

WestJet will receive three additional Boeing Dreamliners in 2020 bringing the airline’s total to six of up to 20.

The WestJet Dreamliner features 320 seats in three cabins: Business, Premium and Economy, all of which contain a high-level of comfort and WestJet’s award-winning guest service. The Dreamliner’s Business cabin features all-aisle-access, lie-flat seats with on-demand dining and entertainment. The upscale Premium cabin is the ideal combination of comfort, value and guest service including a separate cabin, elevated meal service and signature welcome perks featuring champagne and an amenity case. WestJet’s improved Economy cabin features on-demand inflight entertainment, blankets and pillows and complimentary food and beverages with a select number of extra legroom seats available for purchase.

Details of WestJet’s 787 summer service:

Route

Frequency

Departing

Arriving

Effective

Calgary-Paris

Four-times weekly

7:35 p.m.

12:20 p.m. (+1)

March 12, 2020

Calgary-Toronto

Daily

8:30 a.m.

1:56 p.m.

Daily as of June

Calgary-Dublin

Three-times weekly

8:45 p.m.

11:36 a.m. (+1)

May 30, 2020

Calgary-London, Gatwick

Daily

7:50 p.m.

11:20 a.m. (+1)

April 14, 2020

Vancouver-London, Gatwick

Daily

5:25 p.m.

10:30 a.m. (+1)

April 26, 2020

London, Gatwick-Vancouver

Daily

10:55 a.m.

12:27 p.m.

April 27, 2020

Toronto-London, Gatwick

Daily

8:45 p.m.

9:00 a.m. (+1)

October 23, 2019

London, Gatwick-Toronto

Daily

12:35 p.m.

3:54 p.m.

October 24, 2019

Toronto-Calgary

Daily

4:00 p.m.

6:00 p.m.

Daily as of June

Top Copyright Photo: WestJet Airlines Boeing 787-9 Dreamliner C-GURP (msn 64975) YYZ (TMK Photography). Image: 947972.

WestJet aircraft slide show: