Monthly Archives: July 2013

Alaska Airlines and Hawai`i BioEnergy sign agreement to purchase sustainable fuel

Alaska Airlines (Seattle/Tacoma) and Hawai`i BioEnergy LLC announced today they have signed an agreement for the carrier to purchase sustainable biofuel for its aircraft. Founded in 2006, Hawai`i BioEnergy is a consortium of three of Hawaii’s largest landowners and three venture capital companies who plan to use locally grown feedstocks to produce biofuels.

Alaska Airlines is Hawai`i BioEnergy’s second customer, and the first airline to sign a contract. Hawaiian Electric Co. previously announced it had agreed to purchase 10 million gallons of fuel a year from Hawai`i BioEnergy for power generation to the state, pending approval by the Hawaii Public Utilities Commission. Hawai`i BioEnergy will ramp up production of the sustainable fuels within five years of regulatory approval, allowing Alaska Airlines to begin procuring sustainable jet fuel for its Hawaii flights possibly as soon as fall 2018.

The feedstock for the biofuel is anticipated to be woody biomass-based and will be consistent with the sustainability criteria established by the Roundtable for Sustainable Biofuels, an international multi-stakeholder initiative concerned with ensuring the sustainability of biomass production and processing.

Alaska Airlines has reduced its carbon footprint intensity by 30 percent (measured by revenue passenger miles) since 2004. In 2011, Alaska Airlines and Horizon Air were the first domestic airlines to fly multiple passenger flights powered by a biofuel blend.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-790 WL N611AS (msn 29753) completes its final approach to the runway at the Seattle-Tacoma International Airport (SeaTac).

Alaska Airlines:

EasyJet unveils new cabin crew uniforms

EasyJet (UK) (easyJet.com) (London-Luton) has issued this statement:

Passengers of easyJet, the UK’s largest airline will be greeted onboard by cabin crew in stylish new attire designed by designer Jeff Banks and his team of corporate wear specialists.

A choice of six new pieces has been added for the airline’s over 4000 cabin crew to choose from in addition to the current uniform worn onboard easyJet’s 1300+ daily flights serving over 30 countries after a comprehensive design, trial and production period of six months. It is the first time since 2007 that easyJet has updated its cabin crew uniform.

With over 3,000 female cabin crew and almost 1,500 males ranging between the ages of 18 and 68 years of age, the new easyJet uniform has been put together with style and comfort in mind. The end result is an easy to wear collection of sharp tailoring and flattering styles which will suit all shapes, sizes and ages of easyJet cabin crew.

EasyJet teamed-up with design consultant Jeff Banks at corporate wear specialists ICW Incorporate wear for the new look, outlining the importance of creating a uniform which would reflect the vibrance and spirit of the easyJet brand and the famous easyJet orange in a contemporary twist on classic styles to look smart and professional. Over 100 cabin crew from across easyJet’s network were then chosen for a series of ‘wearer trial’ tests in which they judged the new uniform on categories of design style and comfort, wash and wear performance, easyJet branding and customer reaction. The crew then gave their feedback on the new uniform, commenting on its look, feel, style, durability and whether fit for purpose after each wear onboard, shaping the decision-making process throughout.

The successful trial resulted in the addition of two dresses complimented by a new longer scarf, leather belt and leather handbag for ladies and a stylish new look waistcoat and tie for gents which have been voted a huge success by easyJet’s cabin crew and passengers alike.

EasyJet (UK):

Ryanair gives up, will sell its 29% Aer Lingus stake to another EU airline

Ryanair (Dublin) is giving up on taking control of rival Aer Lingus (Dublin). The airline issued this statement:

Ryanair on July 23 confirmed that, as part of its ongoing remedies discussions with the UK Competition Commission (CC) in a case where the CC have produced no evidence whatsoever of any lessening of competition as a result of Ryanair’s 6½ year old 29% shareholding in Aer Lingus, Ryanair has now offered the following undertaking to the CC:

In order to dispel the CC’s unfounded and invented “concern” that Ryanair’s shareholding may prevent Aer Lingus from being acquired by another EU airline, Ryanair will undertake to unconditionally sell its 29% shareholding to any other EU airline that makes an offer for Aer Lingus and obtains acceptances from 50.1% of Aer Lingus shareholders.

The above remedy is without prejudice to Ryanair’s vehement objection to the CC’s manifestly false conclusion that Ryanair has influence over Aer Lingus’ commercial strategy and/or that Ryanair’s 6½ year old minority shareholding in Aer Lingus has resulted in a lessening of competition. This conclusion is flatly contradicted by 6½ years of evidence, by the European Commission’s findings in February 2013 that competition between Ryanair and Aer Lingus has intensified, and by the evidence submitted even by Aer Lingus and the Irish Government (to the EU), which proves that competition between Ryanair and Aer Lingus intensified to the benefit of consumers over the last 6½ years.

Ryanair’s Robin Kiely said:

“It is clear from the CC’s own Provisional Findings report that it has found no evidence of any lessening of competition between Ryanair and Aer Lingus. In fact, Ryanair’s recent (3^rd) offer for Aer Lingus was prohibited by the EU precisely because of the evidence, submitted by both Aer Lingus and the Irish Government, that competition between Ryanair and Aer Lingus has “intensified” during the past 6½ years.

These inconvenient facts have reduced the CC’s Simon Polito (Chairman) and Roger Davis (Member) to inventing new and fantastical “concerns” in order to justify their apparently premeditated and biased “thinking” that Ryanair should be forced to sell down this 6½ year old minority stake. The only remaining “concern” they can now dream up is that Ryanair’s 29% stake “might” prevent another EU airline buying Aer Lingus; despite 6½ years of evidence (and repeated public statements) that no other EU airline has any interest in acquiring Aer Lingus.

In order to remove any remaining shred of credibility from this CC process and eliminate any doubt about this imaginary albeit non-existent “concern”, Ryanair has now agreed that it will unconditionally sell its 6½ year old minority stake to any other EU airline which makes an offer for, and acquires more than 50.1% of, Aer Lingus shares, at the same price and terms which are accepted by these other 50.1% of Aer Lingus shareholders. This remedy unconditionally removes any ability by Ryanair to block any future takeover of Aer Lingus by another EU airline.

This bogus CC “concern” has now been fatally undermined thereby removing any requirement for a divestment of Ryanair’s 6½ year old minority shareholding which even the CC now admits hasn’t given Ryanair any influence, and Aer Lingus admits has led to intensified competition to the benefit of the perhaps 1 or maybe 2 UK consumers who even fly Aer Lingus.”

Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Boeing 737-8AS EI-CSE (msn 29920) taxies at the Dublin hub. The airframe has since gone on to Gol as PR-VBE.

Aer Lingus:

Ryanair:

South African Airways takes delivery of two new Airbus A320s

South African Airways (SAA) (Johannesburg) has taken delivery of its first two new Airbus A320s out of a total of 20 A320 Family aircraft ordered from Airbus in 2010. The development is set to deliver cost efficiencies and allow SAA to expand its Sub-Sahara regional route network and boost revenue in the rapidly growing market.

The airline’s A320s, powered by IAE-V2500 engines, feature a two class cabin layout, seating 24 passengers in business class and 114 in economy. The A320s will replace its present fleet of 737-800s and will augment the A319s it already has in service and mark the latest phase of SAA’s fleet modernization plan.

Copyright Photo: Paul Denton/AirlinersGallery.com. SAA currently already operates 2 Airbus A320s and 13 Boeing 737-800s. Airbus A320-232 ZS-SZZ (msn 4990) arrives at the Johannesburg hub.

South African Airways:

Hawaiian Holdings reports 2Q net income of $11.3 million

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), reported its financial results for the second quarter of 2013.

Second Quarter 2013 Financial Results

Adjusted net income, reflecting economic fuel expense, of $12.6 million or $0.24 per diluted share.
GAAP net income of $11.3 million or $0.21 cents per diluted share.
Available seat miles (ASMs) increase of 20.9% year-over-year.
Cost per available seat mile (CASM), excluding fuel, decrease of 11.2% year-over-year.
CASM decrease of 9.7% year-over-year.

Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “Our results for the quarter were better than expected thanks chiefly to some good cost control. Demand across all of our geographies remains strong, even overseas where the dollar has strengthened against foreign currencies. In North America, our business is coming back as the rate of industry capacity growth moderated in the quarter while our Neighbor Island business is now performing well. On our international routes we are seeing the strengthening of the dollar undermine some of the excellent results we have had in the last couple of years but this portion of our business remains the core focus of our expansion plans.

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

Liquidity and Capital Resources

As of June 30, 2013 the Company had:

Unrestricted cash and cash equivalents of $478 million.
Available borrowing capacity of $70 million under Hawaiian’s Revolving Credit Facility.
Outstanding debt and capital lease obligations of approximately $767 million consisting of the following:
- $369 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.
- $163 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
- $103 million in capital lease obligations to finance an Airbus A330-200 and two Boeing 717-200 aircraft.
- $58 million outstanding under floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
- $74 million outstanding of Convertible Senior Notes.

Business Highlights

Operational

Ranked #1 nationally for on-time performance for the months of March, April and May 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
Ranked the #1 domestic carrier for travel to Hawai’i by Travel + Leisure.
Expanded our frequent flyer partnership with American Airlines.
Announced codeshare and interline agreements with China Airlines for connecting travel through Taipei, Taiwan.

Fleet and Financing

Financed our next six Airbus A330-200 aircraft deliveries through 2014 with Enhanced Equipment Trust Certificates (EETC).
Added three new Airbus A330-200 aircraft for North America and International service.

New routes and increased frequencies

Honolulu to Sendai, Japan three-times-weekly service launched June 25, 2013.
Honolulu to Taipei, Taiwan three-times-weekly service launched July 9, 2013.

Third Quarter and Full Year 2013 Outlook

The table below summarizes the Company’s expectations for the quarter ending September 30, 2013 and the full year ending December 31, 2013, expressed as an expected change compared to the results for the quarter ended September 30, 2012 or the year ended December 31, 2012, as applicable (the results for which are presented for reference).

	Third
	Quarter
Item	2012	Guidance

Cost per ASM Excluding Fuel (cents)	7.62	Up 2.5% to up 5.5%
Passenger Revenue Per ASM (cents)	12.30	Down 0.5% to up 2.5%
Operating Revenue Per ASM (cents)	13.56	Down 0.5% to up 2.5%
Passenger Revenue Per RPM (cents)	14.77	Down 2.5% to up 0.5%
Passenger Load Factor	83.3%	Up 1 pts to Up 3 pts
ASMs (millions)	4,052.2	Up 7.5% to up 10.5%
Gallons of jet fuel consumed (millions)	54.5	Up 7% to up 10%



	Full Year
Item	2012	Guidance
Cost per ASM Excluding Fuel (cents)	8.18	Down in the low single digits
ASMs (millions)	14,687.5	Up 12.5% to up 15.5%

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-33A N580HA (msn 28140) lines up to land at Los Angeles International Airport.

Hawaiian Airlines:

Frontier puts its first Airbus A320 with Sharklets into revenue service

Frontier Airlines (2nd) (FlyFrontier.com) (Denver) has placed its first Airbus A320 with Sharklets, the pictured A320-214 N220FR (msn 5661) with a Tiger Shark on the tail, into revenue service. The company issued this statement:

Frontier Airlines recently added its newest aircraft to its fleet, an Airbus A320 with Sharklets. The Sharklets, which are eight foot tall wingtip devices, help save fuel and enhance the overall efficiency of the aircraft. The Sharklets are expected to save up to four percent, or up to $400,000 per year in fuel burn by reducing drag while also lowering noise emissions and improving take-off performance.

In keeping with the Frontier brand that has a unique animal on each aircraft tail, the new aircraft introduces a new species to the Frontier fleet. “The new aircraft is Frontier’s first with Sharklets, so naturally, a shark seemed like a perfect fit,” said Daniel Shurz, Frontier’s senior vice president, commercial. “The tiger shark joins our existing gang of land and marine animals from the destinations we serve.”

Frontier Airlines:

Delta to launch flights between Seattle/Tacoma and London Heathrow on March 29, 2014

Delta Air Lines (Atlanta) is planning to launch nonstop service between Seattle/Tacoma and London (Heathrow) in anticipation of receiving antitrust immunity for its new joint venture with Virgin Atlantic Airways (London). The company issued this statement:

In anticipation of receiving antitrust immunity later this year for its joint venture with Virgin Atlantic Airways, Delta Air Lines will offer new daily nonstop service from Seattle-Tacoma International Airport to London Heathrow Airport beginning March 29, 2014.

New service from Seattle/Tacoma to London Heathrow gives Delta’s customers nonstop access to one of the world’s top business markets and is an important enhancement to Delta’s growing trans-Atlantic and trans-Pacific network from Seattle/Tacoma. As of January 1, 2014, every international Delta flight from Seattle/Tacoma, including the new London service, will feature full flat-bed seats in BusinessElite, Economy Comfort seating and in-flight entertainment in every seat throughout the aircraft.

The Seattle/Tacoma market is one of Delta’s fastest-growing international gateways. In June, Delta added service to Shanghai and Tokyo-Haneda, complementing long-established service to Tokyo-Narita. Delta also has served Beijing and Osaka, Japan from Seattle/Tacoma since 2010.

Through its trans-Atlantic joint venture with Air France-KLM and Alitalia, Delta also offers Seattle/Tacoma area travelers nonstop service to Paris and Amsterdam while also providing connecting service to more than 150 additional destinations beyond those European hubs. With new service to London-Heathrow, Delta will operate flights to eight nonstop international destinations from Seattle.

In December 2012, Delta and Virgin Atlantic announced Delta’s plans to acquire 49 percent of Virgin Atlantic. The carriers intend to form a trans-Atlantic joint venture to optimize schedules and services between the North America and the U.K. Delta last month obtained unconditional clearance from the European Commission and the U.S. Department of Justice to proceed with the investment transaction. Now both carriers are awaiting U.S. Department of Transportation approval of antitrust immunity to implement their joint venture.

On July 3, Delta and Virgin Atlantic launched reciprocal codesharing across 108 routes to 66 destinations throughout North America and the U.K. With the new Seattle service, Delta will operate 10 daily nonstop flights to London Heathrow from six destinations including Detroit, Minneapolis/St. Paul, New York-JFK, Boston and Atlanta.

Delta will operate Seattle-London Heathrow service using a 210-seat Boeing 767-300 ER aircraft featuring 35 full flat-bed seats in BusinessElite, 32 seats in Economy Comfort and 143 Economy class seats.

Flight details for Seattle-London Heathrow Service:

Flight	Departs	Arrives	Service Begins
37	SEA at 6:40 p.m.	LHR at 12:05 p.m. (following day)	March 29, 2014
36	LHR at 12:20 p.m.	SEA at 2:40 p.m. (same day)	March 30, 2014

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 767-332 ER WL N193DN (msn 28450) lands at Baltimore/Washington.

Delta Air Lines:

Boeing completes the 737 MAX 8 configuration

Boeing (Chicago) has completed the firm configuration of the 737 MAX 8. This milestone marks completion of the major trade studies that define the capabilities of the 737 MAX family.

As detailed designs are completed and released, production can begin. Final assembly of the 737 MAX 8 is scheduled to begin in 2015 with first delivery scheduled for the third quarter of 2017.

The 737 MAX will be 13 percent more fuel-efficient than today’s most efficient single-aisle airplanes and 8 percent more fuel-efficient per seat than tomorrow’s competition. The configuration includes new LEAP-1B engines from CFM International that are optimized for the 737 MAX, a redesigned tail cone and the Boeing designed Advanced Technology Winglet to reduce fuel use. Other changes incorporated include upgrades to the flight deck displays, an electronic bleed air system and fly-by-wire spoiler flight controls.

The 737 MAX family includes the 737 MAX 7, 737 MAX 8 and 737 MAX 9 and will serve the 100- to over 200-seat market. The 737 MAX will extend the Next-Generation 737 range advantage with the capability to fly more than 3,500 nautical miles (6,482 km), an increase of 400-540 nmi (741-1,000 km) over the Next-Generation 737. First delivery of the 737 MAX 9 is planned for 2018 followed by first delivery of the MAX 7 in 2019.

To date, the 737 MAX has accumulated orders for 1,495 airplanes.

Image: Boeing.

Allegiant’s 2Q net profit increases to $25.8 million

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported a net income of $25.8 million in the second quarter, up 2.3 percent from the same quarter a year ago. This represents the 42nd consecutive profitable quarter.

Read the full report: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N879GA (msn 53486) approaches the Las Vegas base for landing dressed in the old 2003 livery.

Allegiant Air:

WestJet Encore to add new service to Terrace, British Columbia

WestJet (Calgary) has announced new twice-daily, nonstop service between Vancouver and Terrace, British Columbia, effective on November 25, 2013.

The new route will be operated by WestJet Encore using Bombardier DHC-8-402 (Q400) NextGen aircraft.

Details of WestJet Encore’s new twice-daily, nonstop service between Vancouver and Terrace, are:

Flight	Departing	Arriving	Effective
3105	Vancouver at 11:40 a.m.	Terrace at 1:22 p.m.	November 25, 2013
3106	Terrace at 1:55 p.m.	Vancouver at 3:26 p.m.	November 25, 2013
3107	Vancouver at 9:30 p.m.	Terrace at 11:12 p.m.	November 25, 2013
3114	Terrace at 6 a.m.	Vancouver at 7:30 a.m.	November 26, 2013