Monthly Archives: October 2015

Allegiant reports its 3Q net profit increased 213.4% to $44.5 million

Allegiant Travel Group (Allegiant Air) (Las Vegas) reported its third quarter net income jumped by 213.4 percent from $14.2 million in 2014 to $44.5 million for this year.

Allegiant logo-3

Aircraft fleet plan by end of period:

Aircraft – (seats per AC) 3Q15 4Q15 YE16
MD-80 (166 seats) ย  ย  ย  ย  51 ย  ย  ย  51 ย  ย  ย 46
757 (215 seats) ย  ย  ย  ย  ย  ย  ย  ย 6 ย  ย  ย  ย  ย 5 ย  ย  ย  ย 4
A319 (156 seats) ย  ย  ย  ย  ย  ย  ย 7 ย  ย  ย  10 ย  ย  ย 17
A320 (177 seats) ย  ย  ย  ย  ย  10 ย  ย  ย  ย 15 ย  ย  ย 16
Total ย  ย  ย  ย  ย  ย  ย  ย  ย  ย  ย  ย  ย  ย  ย  ย 74 ย  ย  ย  ย 81 ย  ย  ย 83

Aircraft listed in table above include only in service aircraft, planned retirements and future aircraft under contract

Read the full report: CLICK HERE

Copyright Photo: Keith Burton/AirlinersGallery.com. Allegiant continues to expand its Airbus fleet. The company increased the number of Airbus aircraft in service by seven versus last year. According to the company, Airbus aircraft flew over 77 percent of the incremental scheduled service ASMs in the third quarter. In addition,ย Airbus aircraft flew over 32 percent of the third quarter ASMs versus 22 percent a year ago.ย Airbus A319-112 HB-JZN (msn 2387) became N302NV with Allegiant.

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WestJet Encore to serve London, Ontario

WestJet (Calgary) announced today it will launch new, twice-daily WestJet Encore service between London, Ontario, and Toronto Pearson International Airport on board WestJet Encore’s fleet of Canadian-made Bombardier Q400 NextGen aircraft beginning on March 15, 2016.

The new service opens up 52 new WestJet destinations and 47 new codeshare destinations via Toronto Pearson to Eastern Canada, the United States, Caribbean, Mexico and Europe.

 

Top Copyright Photo: TMK Photography/AirlinersGallery.com.ย Bombardier DHC-8-402 (Q400) C-FENY (msn 4447) taxies at the Toronto (Pearson) hub.

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Alaska Air Group reports 3Q GAAP net income of $274 million

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported third quarter 2015 GAAP net income of $274 million, or $2.14 per diluted share, compared to $198 million, or $1.45 per diluted share in the third quarter of 2014. Excluding the impact of mark-to-market fuel hedge adjustments of $5 million ($3 million after tax, or $0.02 per diluted share), the company reported record adjusted net income of $277 million, or $2.16 per diluted share, compared to adjusted net income of $200 million, or $1.47 per diluted share in 2014.

“This was the busiest summer in our 83 year history and represents our highest quarterly profit ever,” said CEO Brad Tilden. “I want to thank our employees who are building a fundamentally strong business and our customers for their incredible loyalty and support.”

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alaska Airlines is gradually phasing out its aging Boeing 737-400s. The type is expected to be gone by the end of 2017. Boeing 737-4Q8 N755AS (msn 25096) arrives at Los Angeles International Airport.

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JetBlue Airways and Seaborne Airlines launch their new codeshare agreement

JetBlue Airways (New York) and Seaborne Airlines (St. Croix and San Juan) on October 21 began selling flights under a codeshare agreement that will offer customers increased travel options and new destinations throughout the Caribbean. Connections will be made via San Juan’s Luis Muรฑoz Marรญn International Airport (SJU), where JetBlue is the largest carrier.

JetBlue square Tartan logo

 

Initially, JetBlue has placed its ‘B6’ designator code on eight Seaborne Airlines routes allowing JetBlue customers to reach more destinations in the Caribbean on a single itinerary:

Anguilla (AXA)
Tortola, British Virgin Islands (EIS)
Dominica (DOM)
Nevis (NEV)
St. Kitts (SKB)
St. Maarten (SXM)
St. Thomas, U.S. Virgin Islands (STT)
St. Croix, U.S. Virgin Islands (STX)

Seaborne-JetBlue codeshare

Following receipt of all necessary government approvals, JetBlue will place the ‘B6’ designator code on the remainder of the Seaborne Airlines network to include:

Antigua (ANU)
Fort-de-France, Martinique (FDF)
La Romana, Dominican Republic (LRM)
Point-a-Pitre, Guadeloupe (PTP)
Punta Cana, Dominican Republic (PUJ)
Santo Domingo, Dominican Republic (SDQ)

In other news,ย JetBlue today also announced its intent to expand the airline’s service to Barbados by adding a daily roundtrip flight between Fort Lauderdale-Hollywood International Airport (FLL) and Grantley Adams International Airport (BGI) in Barbados.

The new daily roundtrip service is set to begin in April 2016, subject to government approval, with seats going on sale in the coming weeks. JetBlue’s Fort Lauderdale-Hollywood focus city will become the third JetBlue city with nonstop flights to Barbados. Service from New York’s John F. Kennedy International Airport (JFK) launched in 2009 and service from Boston’s Logan International Airport (BOS) will begin this fall.

Top Copyright Photo: Ken Petersen/AirlinersGallery.com. SAAB 340B N341CJ (msn 341) with the image of a sea turtle on the tail, taxies at the San Juan hub.

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Norwegian orders 19 additional 344-seat Boeing 787-9 Dreamliners

Norwegian Air Shuttle (Norwegian Long Haul) (Oslo) today made this announcement:

Norwegian.com logo-1 (LRW)

Norwegian, Europeโ€™s third largest low-cost airline, is continuing to expand its international operations by signing an agreement to purchase 19 new Boeing 787-9 Dreamliners โ€“ the order will help more than quadruple its current long-haul fleet to 38 aircraft within the next five years.

The agreement is the largest single order of 787-9s in Europe and includes purchase options for an additional ten aircraft of the same type. The new order will enable the company to launch even more long-haul routes and expand its existing network in the coming years.

Norwegian already operates Dreamliner aircraft from its London Gatwick base, serving the UKโ€™s only low-cost long-haul flights to US โ€“ Dreamliners are used on services to New York, Los Angeles and Fort Lauderdale/Hollywood. A further low-cost route from Gatwick to Boston will be launched in May 2016, while next month will see the launch of low-cost Caribbean flights with the UKโ€™s only direct route to Puerto Rico โ€“ both new routes will also be served by Dreamliner aircraft.

Norwegian currently operates eight 787-8 Dreamliners and has 11 of the bigger 787-9 on order. With todayโ€™s order, Norwegianโ€™s long-haul fleet will consist of 38 Dreamliners by 2020. The first deliveries from the new order will commence in 2017.

The 787-9 complements and extends the 787 family. With a longer fuselage, the 787-9 will fly 53 more passengers than the 787-8. Norwegianโ€™s asset company, Arctic Aviation Assets Limited (AAA), will own the aircraft.

 

Norwegianโ€™s version of the 787-9 has 344 seats with 35 in premium and 309 in economy. With todayโ€™s order for 19 787-9s, Norwegian has more than 150 unfilled orders from Boeing, including 100 737 MAXs. In addition, the company has 100 Airbus A320neos on order.

In other news, on the financial side,ย Norwegian today reported its third quarter results for 2015 with a pre-tax result (EBT) of 1.1 billion NOK (ยฃ87million), a strong improvement from the same quarter previous year. The companyโ€™s long-haul operations and international routes have a positive impact on the results. The load factor is at a record high of 91 percent.
The pre-tax result was 1.1 billion NOK, a strong improvement from 505 MNOK (ยฃ43.5million) in the same quarter last year. The load factor for the third quarter was 91 per cent, up six per cent.

The airline carried 7.7 million passengers this quarter, an increase of 9 per cent. The long-haul passenger growth was 15 per cent, compared with last yearโ€™s third quarter result.

Norwegianโ€™s strongest growth in terms of passenger numbers was at London Gatwick, where the airline operates both long- and short-haul routes. The growth at Spanish airports is also considerable. In the Nordic countries passenger numbers are stable, with a slight increase in market share.

Norwegian CEO Bjรธrn Kjos said: โ€œThe third quarter results show that Norwegianโ€™s long-haul operations and international routes are becoming significantly more important. This is where we see most of the future growth potential, enabling the company to compete in a global market with strong competition.

โ€œUK activity has played a crucial role in a strong third quarter for Norwegian, with Gatwick seeing our biggest overall growth in passenger numbers. With new aircraft and new routes planned, expansion in the UK will continue to be at the forefront of our long-term plans.

โ€œWe also see growth in Europe in general, while the Scandinavian market is stable. The Scandinavian and European route networks play an increasingly important role in our long-haul strategy, as many of our passengers use connecting flights with Norwegian.โ€

The UK will be a key market in Norwegianโ€™s future expansion plans – growth and activity in the UK during the third quarter has included:

UK FLEET UPGRADED WITH NEW AIRCRAFT – Norwegian already has one of the youngest aircraft fleets in the world and Q3 has seen further new 737-800 aircraft begin operating from UK airports

Also in the third quarter, Norwegian received more international awards, including two Passenger Choice Awards. The company took delivery of five new aircraft, ordered two new Dreamliners and entered into an agreement to lease out 12 of its new Airbus A320neos, which will be delivered from 2016. Norwegian-subsidiary Arctic Aviation Assets Limited owns the aircraft and will be leasing them out for a period of 12 years.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 787-8 Dreamliner EI-LNA (msn 35304) is pictured at Paine Field near Everett before it was handed over to the carrier.

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Air Europa introduces a new look

Air Europa (Palma de Mallorca) yesterday (October 20)ย unveiled its new livery as pictured on EC-KRJ, an Embraer ERJ 190-200LR (ERJ 195) which was just painted at East Midlands. The carrier has removed red from its color scheme.

Air Europa logo (2015)

Top Copyright Photo: Javier Rodriguez/AirlinersGallery.com. EC-KRJ is seen on its arrival at its Palma de Mallorca base as flight AEA007.

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KLM details its winter 2015-2016 schedule changes

KLM Fleet (KLM)(LR)

KLM Royal Dutch Airlines (Amsterdam) has announced further details of its upcoming Winter 2015-2016 Schedule:

KLM logo

During the 2015-16 winter season (from October 25, 2015 to March 27, 2016), KLM will expand its network by continuing its new services to Edmonton, Bogotรก-Cali in the long haul network and Krakow, Montpellier and Belfast in the medium haul network. Simultaneously KLM is further adjusting its capacity to the market demand with capacity reductions on East Africa and Japan.

 

KLM 787-9 PH-BHA (14)(Grd)(KLM)(LR)

KLM is improving its product with the delivery of the Boeing 787-9 Dreamliner (above) and the finalization of the new World Business Class configuration in Boeing 777-200 aircraft. By the end of 2015, more than 60% of the total KLM Long Haul fleet will be equipped with the new full flat WBC configuration.

KLM is increasing its capacity by 2.9%* compared to the 2014-2015 winter season. The growth is being implemented on the long-haul network, largely by introducing larger aircraftโ€”including the Boeing 787 Dreamliner and Boeing 777-300โ€”and by reducing production using the Airbus A330-200 and the Boeing 747 Combis.

(*measured in ASKs)

KLM 777-300 (14)(Nose)(KLM)(LR)

Europe, fortifying its portfolio with the continuation of the three start-ups in summer season 2015.

In Summer 2015, three new destinations (Krakow, Montpellier and Belfast) have been started successfully and will be continued in the Winter season 2015. These services will continue being operated with five weekly frequencies to Belfast and Krakow and four weekly frequencies to Montpellier. To further improve the hub function of Amsterdam, KLM will increase its weekly flights to Florence from 14 to 16 and to Bristol from 21 to 26.

North America, continuation of new destination and capacity increase in response to market demand

KLM is continuing its services to Edmonton in Canada started in Summer 2015. These services will be operated three times a week. Via Edmonton, passengers could benefit from the beyond network of our Canadian partner WestJet. Furthermore, KLM keeps on extending its capacity on existing destinations in response to market demand: San Francisco is served now seven times a week instead of six. KLM is further expanding its services to Atlanta by increasing weekly frequencies from twelve to 13-14 frequencies. In the Winter season 2015, in conjunction with Delta Air Lines operations, Atlanta is served 27-28 times a week from Amsterdam.

Central and South America, strengthening position

KLM will continue flying to the Colombian cities of Bogota and Cali on a three-weekly rotation in Winter 2015. KLM will also continue the fourth frequency to Buenos Aires-Santiago de Chile in the Winter season. The new generation aircraft Boeing 787 Dreamliner will be introduced to Rio de Janeiro in the course of this Winter. Furthermore, KLM will continue to make use of its key partnerships in the region, including Copa Airlines from Panama and GOL in Brazil. Regarding the Caribbean network, a schedule change will be implemented to Aruba and Bonaire, resulting in direct flight to and from both islands on some days of the week. From January 2016 onwards, KLM will increase capacity to Havana in order to accommodate the increasing number of tourists to Cuba.

Africa, optimizing the network

Within East Africa, KLM has redesigned the network to better meet the demand from specific markets. KLM will increase the number of circle flights to Kilimanjaro/Dar es Salaam and Kigali/Entebbe from four weekly frequencies to a daily frequency, and reduce the number of direct flights in the region. KLM will continue to build on the strength of the Kenya Airways network in East Africa and further develop its connecting opportunities beyond Nairobi. In West Africa, KLM will add a third weekly frequency to Luanda per December 2015. Together with Air France, KLM offers six weekly flights from both hubs to the Angolan capital.

Asia and Middle-East, reinforcing partnerships

In the Middle East, Abu Dhabi โ€“ Bahrein will be the first route for deployment of the Boeing 787 Dreamliner, Dubai will be the second route to receive the Dreamliner in the course of Winter 2015. Furthermore, KLM continues to reinforce cooperation with Etihad Airways to offer customers a wider choice of connecting flights. In China, KLM is intensifying its cooperation with its Chinese partners by implementing a new Joint Venture between KLM, China Southern and Xiamen Airlines. Due to strong pressure on traffic from Japan to Europe and on results, KLM has decided to reduce frequencies to Osaka and suspend the Fukuoka service as of January 5, 2016.

Images: KLM.

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SkyWest to operate 19 new Embraer 175s for Delta

Embraer 175 (Flt)(Embraer)(LR)

SkyWest, Inc. (SkyWest Airlines) (St. George, Utah) today issued this statement:

SkyWest (red-blue) logo (LRW)

SkyWest, Inc. announced today that it has entered into a Capacity Purchase Agreement (CPA) with Delta Air Lines (Atlanta) to operate 19 new Embraer E175 dual-class regional jet aircraft. SkyWest has determined that these 19 E175 aircraft will be operated by SkyWest Airlines, Inc. (St. George) a wholly-owned subsidiary of SkyWest. The CPA is under terms and conditions similar to SkyWest’s existing Delta agreements.

Delta Connection logo

“SkyWest is a longtime Delta partner, and we’re pleased to advance our partnership with an additional aircraft type,” said Chip Childs, SkyWest, Inc. President. “As we continue to evolve our fleet mix, we look forward to continuing to deliver what our partners need through solid, reliable service.”

The aircraft will be flown in dual-class configuration of 76-seats, and will be equipped with Wi-Fi. Under the agreement, it is anticipated that delivery of the aircraft will begin in August 2016, with all 19 aircraft being delivered by mid-2017.

In related news,ย Embraer and SkyWest, Inc. have signed a firm order for an additional 19 E175s jets. The aircraft will be flown by SkyWest Airlines, Inc. a wholly-owned subsidiary of SkyWest, under a Capacity Purchase Agreement (CPA) with Delta Air Lines. The transaction will be included in Embraer’s 2015 fourth-quarter backlog. Delivery of the first aircraft is expected for the third-quarter of 2016.

SkyWest Airlines currently operates the E175 for Alaska Airlines (Alaska SkyWest) and United Airlines (United Express).

Image: Embraer.

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Air Canada and the flight attendant union reach a tentative agreement

Air Canada (Montreal) has issued this statement:

Air Canada logo-1

Air Canada and the Canadian Union of Public Employees (CUPE) have announced they have reached a new agreement, subject to ratification, on collective agreement terms for ten years for the approximately 6,500 flight attendants at Air Canada and 700 at Air Canada rouge.

“This new, ten-year agreement with CUPE is an important development which will support long term profitable growth for the benefit of Air Canada, our stakeholders and our flight attendants at both mainline and Air Canada rouge,” said Benjamin Smith , President, Passenger Airlines, Air Canada. “This is a win-win agreement that will provide added stability and flexibility while acknowledging the important contribution of our flight attendants towards Air Canada’s future success. As the fifth collective agreement reached with unions representing our employees over the past year, it is further indication of the collaborative partnership that is building Air Canada into a Global Champion.”

“We are pleased that the company has agreed to many key improvements to our current collective agreement, including much-needed provisions on job security amongst other important gains. Following many months of hard work at the bargaining table, the eight members of our bargaining committee are unanimous in their joint endorsement of this tentative agreement. We look forward to a sustained period of growth at Air Canada. Our company’s global expansion in the months and years ahead will be mutually beneficial, and will have a tremendously positive impact on our membership,” said Michel Cournoyer , President, CUPE Airline Division.

The agreement is subject to ratification by CUPE’s membership as well as to certain openers over the 10 year period. Details of the agreement will not be released pending ratification by CUPE and approval by the Air Canada Board of Directors.

The union will recommend ratification to its members and the Company will seek the Air Canada Board of Directors’ approval for the agreement promptly.

This agreement with CUPE, subject to ratification, follows on the conclusion in October 2014 of a new agreement with Air Canada’s 3,000 pilots on collective agreement terms for ten years. It is the fifth collective agreement reached by Air Canada and its unions, including those with Unifor representing the airline’s 4,000 Customer Service and Sales Agents in Canada , the International Brotherhood of Teamsters (IBT) representing its U.S. unionized workforce and UNITE representing its U.K unionized workforce.

Copyright Photo: Chris Sands/AirlinersGallery.com. Airbus A330-343 C-GHKW (msn 408) is seen in action at a snowy Calgary.

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FedEx and TNT Express march towards their merger with no object from the European Commission

FedEx Corporation logo

FedEx Corporation (Memphis) and TNT Express N.V. (Hoofddorp, Netherlands) have jointly issued this statement concerning the on-going acquisition by FedEx of TNT stock:

TNT logo

This is a joint press release by FedEx Corporation, FedEx Acquisition B.V. and TNT Express N.V. pursuant to the provisions of Article 5:25i paragraph 2 of the Dutch Act on Financial Supervision (Wet op het Financieel Toezicht) and Article 4 paragraph 3, of the Decree on Public Takeover Bids (Besluit Openbare Biedingen Wft) in connection with the recommended public offer by FedEx Acquisition B.V. for all the issued and outstanding ordinary shares in the capital of TNT Express N.V., including all American depositary shares representing ordinary shares. This announcement does not constitute an offer, or any solicitation of any offer, to buy or subscribe for any securities in TNT Express N.V. The Offer is made solely pursuant to the offer document, dated August 21, 2015 (the Offer Document), approved by the Netherlands Authority for the Financial Markets (Autoriteit Financiรซle Markten). Terms not defined in this press release will have the meaning as set forth in the Offer Document.

FedEx Corporation (FedEx), FedEx Acquisition B.V. (the Offeror) and TNT Express N.V. (TNT Express) hereby jointly confirm in response to recent media coverage, that to date they have not received a Statement of Objections from the European Commission. The internal deadline of the European Commission for issuing a Statement of Objections would have expired on October 23, 2015, but FedEx and TNT have been informed by the European Commission that no Statement of Objections will be issued. FedEx and TNT continue to expect that the Offer will close in the first half of calendar year 2016.