Monthly Archives: April 2018

Talofa Airways suspends operations

Talofa Airways (Apia) is a small airline providing passenger and cargo services on flights between Samoa, American Samoa, Tonga and other islands in the Pacific Ocean.

Samoa’s civil aviation authorities suspended the operations of the small airline after an engine failure issue on April 25 a flight from Fagalii to Pago Pago. The Turbo Commander aircraft landed safely at Faleolo. This was the last operational aircraft for the airline.

The airline hopes to resume operations.

All images by Talofa Airways.

FlyBosnia to start operations in June

FlyBosnia (Sarajevo) is planning to commence scheduled passenger operations in June according to Ex-YU Aviation News. The Saudi-backed new airline will fly an Airbus A320 between Sarajevo and Riyadh starting on June 10.

 

UPS reports on its first quarter financial performance

N609UP

Atlanta,ย GA

  • International Revenue and Operating Profit Climb 15%
  • Average Daily Exports grew 12%, Led by Europe and U.S. Trade Lanes
  • Supply Chain & Freight Operating Profit up 14% on 16% Revenue Growth
  • U.S. Domestic Revenue Rises 7.2% on 4.6% Volume Growth
  • Weather Conditions Muted First Quarter U.S. Domestic Results ย 
  • Cash from Operations of $4.1B Resulted in Free Cash Flow* of $2.6B
  • Reaffirms Full-Year 2018 Adjusted EPS Guidance

UPS has announced that first quarter 2018 earnings per share rose 17% to $1.55, led by double-digit operating profit growth in both International and Supply Chain and Freight segments.

โ€œTop-line growth in our business was strong across all business segments, reflecting the power of UPSโ€™s global solutions and continued favorable economic conditions,โ€ said UPS Chairman and CEO David Abney. โ€œWhen combined with our transformation initiatives, these favorable trends position UPS for strong returns going forward.โ€

ย 

Consolidated Results

ย 

1Q 2018

ย 

1Q 2017

ย 

ย 

% Change

Revenue

$17,113 M

$15,510 M

10%

Net income

$1,345 M

$1,166 M

15%

Diluted earnings per share

$1.55

$1.33

17%

For the total company in 1Q 2018:

  • Total revenue increased 10% to $17.1 billion, on strong demand for UPS solutions.
  • Average yield increased by 4.3%, led by International and U.S. Deferred Air products.
  • UPS rewarded shareowners by increasing dividends per share by nearly 10% over the prior year, and distributing $840 million during the quarter.
  • To support investment strategies the company made capital expenditures of $1.5 billion.
  • The lower effective tax rate reflects a more competitive U.S. tax structure, some discrete tax items and includes the impact of share-based compensation.
  • First quarter results include the adoption of new accounting standards for pension and revenue recognition.ย  Prior-period results were also recast to reflect these changes.

U.S. Domestic Segment

The U.S. Domestic segment experienced strong demand as customers increasingly chose UPS solutions.ย  Both unexpected and planned items weighed on operating profit for the segment during the first quarter.

ย 

ย 

1Q 2018

ย 

1Q 2017

Revenue

$10,227 M

$9,536 M

Operating profit

$756 M

$950 M

For the U.S. Domestic segment in 1Q 2018:

  • Revenue increased to $10.2 billion, up 7.2% over 1Q 2017.ย  Revenue improved across all products, signaling the strong market demand for UPS solutions.
  • Revenue per piece increased 2.6% as higher base-rate pricing and fuel surcharges offset headwinds from customer and product mix.
  • Operating profit includes headwinds from severe winter weather of $85 million, Saturday deployment, network projects and higher pension expenses.

International Segment

โ€œThe execution of our diversified global strategies and our investments produced double-digit growth in revenue and profit,โ€ said Abney.ย  โ€œEach of our International regions is contributing to our financial gains, and we expect this strong momentum to continue.โ€

ย 

ย 

ย 

1Q 2018

ย 

1Q 2017

Revenue

$3,533 M

$3,074 M

Operating profit

$594 M

$518 M

For the International segment in 1Q 2018:

  • International revenue increased 15% despite two fewer operating days in many countries. Currency-neutral revenue increased 8.7%.
  • Export, Domestic and Cargo product groups all achieved double-digit revenue growth.
  • Export shipments per day grew an average 12% as premium products continue to outpace non-premium.
  • Export volume growth in Europe and the U.S. continued to be strong for the quarter.
  • Operating profit was $594 million, up 15% on higher Export shipments and expanded product yields.ย  Currency-neutral operating profit increased 10%.

Supply Chain and Freight Segment

The Supply Chain and Freight segment produced another quarter of strong financial results.ย  Revenue and operating profit grew by double digits due to successful revenue-quality initiatives, opportunistic growth strategies and structural cost reductions.

ย 

ย 

1Q 2018

ย 

1Q 2017

Revenue

$3,353 M

$2,900 M

Operating profit

$170 M

$149 M

For the Supply Chain and Freight segment in 1Q 2018:

  • Revenue increased to $3.4 billion, up 16% over 1Q 2017.ย  The business units focused on high quality, middle-market customers.
  • The Forwarding business led all units with 27% revenue growth, as revenue management initiatives and stable market conditions drove top-line gains.
  • UPS Freight revenue increased 9.9% on solid LTL (less-than-truckload) pricing and tonnage growth.
  • Operating profit was $170 million, up 14% from the same quarter in 2017.

Outlook

The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to-market adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material.

โ€œOur focused business strategies are producing strong results in both the International and Supply Chain segments,โ€ said Richard Peretz, UPSโ€™s chief financial officer.ย  โ€œThe benefits from our investments, new multi-year transformation efficiencies and stronger pricing position us well for shareowner value creation.โ€

  • UPS expects 2018 adjusted diluted earnings per share to be in a range of $7.03 to $7.37.
  • The company projects free cash flow of $4.5 billion to $5.0 billion in 2018.
  • The effective tax rate should be in a range of 23% to 24% for the remainder of the year.
  • Capital expenditures in 2018 are planned between $6.5 billion to $7.0 billion.

Copyright Photo:ย UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N609UP (msn 64254) PAE (Nick Dean). Image: 941250.

UPS Airlines aircraft slide show:

Ryanair to open a new Dรผsseldorf base, its 86th

Ryanair Boeing 737-8AS WL EI-DPB (msn 33603) TLS (Paul Bannwarth). Image: 940735.

Ryanair has announced that it will open a new base at Dรผsseldorf Airport from June, its 11th base in Germany and 86th in Europe, with 1 based aircraft, as it launched two new summer routes to Alicante and Malaga. These new Ryanair routes are in addition to the daily service to Palma de Mallorca which was announced earlier this year and the 12 routes operated on behalf of LaudaMotion.

 

 

Copyright Photo:ย Ryanair Boeing 737-8AS WL EI-DPB (msn 33603) TLS (Paul Bannwarth). Image: 940735.

Ryanair aircraft slide show:

Germania introduces new crew uniforms

Germania airline revealed its new uniforms in Berlin on Friday. Both cockpit and cabin staff presented the new dark blue and green look, which will be worn on board with immediate effect. The new work clothing design is part of the modernisation strategy that Germania is implementing to strengthen its position in the future, renew its processes, advance digitalisation and thereby increase efficiency. We spoke with

Markus Alwast, Director Inflight & Guest Experience, Germania
and
Ursula Muss, Fashion Designer & Managing Director, Q Corporate Fashion

about the fashion update, the feedback from employees and the increase in uniform demand.

For the passengers on board, the uniform is all about the outward appearance of an airline. For the flight staff, it is the daily work clothing. Germania has given the uniform a refresh and the staff can be seen in their new attire from this month onwards, as the outfit comes into use. What was the reason behind the new collection?

Markus Alwast: As a service-orientated carrier, Germania is always working on its internal and external appearance. Eight years after the creation of the last design, this also includes a new uniform that meets the requirements of our crews and the usual service standard of Germania. The perception of contemporary and appropriate clothing is changing โ€“ both with those looking at them as well as those wearing them. Germania has set out to modernize many areas and to become more visible as a brand. On the one hand, this is achieved by increasing our presence at airports and on the other, through the professional appearance of our employees in the eyes of our customers โ€“ with timelessly elegant uniforms.

You could have taken this opportunity to choose vibrant colours which generate more attention. Instead, you are opting for fashionable and smart restraint. Why is this?

Markus Alwast:ย  Germania is an airline with more than 30 years of history and flight experience. We have had a lot of time to get to know our international customer base and their requirements and we make sure that their well-being is looked after constantly. We were recently selected as the โ€œBest Airline โ€“ Germanyโ€, based on TripAdvisor customer feedback. This reinforces our belief that we don’t have to be flashy to be seen. We rely on a credible service commitment and friendly interaction with all of our guests. In our eyes, a discreet, respectable appearance with fresh accents underlines this, especially when you are transporting passengers between different cultures across international routes, like Germania is.

What has been changed in the clothing? What is new?

Ursula Muss: Our aim was: fashionable, easy-care and readily combinable. Whether skirt or trousers, blouse, top or blazer โ€“ each female member of staff can decide for herself. The wardrobe is also proving popular among male employees, thanks to the larger selection of garments, which can be combined confidently: on cold days, a quilted coat can be worn over the jacket; for that added comfort there is a cardigan. A shirt that can be combined with a tie does the trick on summer days. In total, we have had 26 different new articles of clothing made for the collection, including belts, hats and even socks. We have changed the basic colour of the uniform from anthracite to dark blue in all areas of the aircraft, thereby uniting the cockpit and cabin in visual appeal. The pilots are now also wearing more green, thanks to the new ties.

Uniforms are now not just part of the company’s public image and an identifying feature, but should also be especially practical and suitable for the wearer and their daily workload. What are the requirements of the employees, both male and female, in terms of work clothing, and how were you able to take them into account?

Ursula Muss: Germania has gathered feedback over many years and we used this as a guideline for creating easy-care clothing that is comfortable to wear. We focused on these attributes when selecting the materials. Breathable materials with high stretchability are therefore preferable for daily use. When tailoring the garments, great importance was attached to ensuring that the personnel on board did not feel restricted when moving around. Whether during service, stowing luggage or in exceptional cases such as a medical incident โ€“ the uniform must be practical. This includes a good fit under different temperature conditions. Apart from this, the opinions are of course as different as the people themselves. Nevertheless, we have managed to create a collection that has been well received by the flight staff.

How long does the process of creating a new clothing line take, and what does it mean for the company?

Markus Alwast: We needed 12 months from planning through to the finished articles. During this process, we were able to include all flight staff within the Germania Group and โ€“with appropriate timing โ€“ take into consideration our growth in personnel resulting from the increase in our fleet size to up to 36 aircraft. Germania has issued uniforms to more than 1200 employees and has identified and implemented necessary changes during individual fitting rounds. It is important to us that our employees feel comfortable with their work on a daily basis and that they have modern working equipment available to them to make their roles easier and increase service levels. The uniform plays a big part in this and no effort was spared with the individual fittings.

Photos: Germania.

Ethiopian Airlines signs purchase agreement for 10 firm Q400 aircraft

Ethiopian Airlines Bombardier DHC-8-402 (Q400) ET-ARM (msn 4472) FAB (SPA). Image: 931591.

Bombardier Commercial Aircraft has announced it has concluded a firm order for 10 new Q400 aircraft with Ethiopian Airlines. The order also includes purchase rights for five additional Q400 aircraft.

Based on the list price of the Q400 aircraft, the firm order is valued at approximately $332 million U.S.

Copyright Photo:ย Ethiopian Airlines Bombardier DHC-8-402 (Q400) ET-ARM (msn 4472) FAB (SPA). Image: 931591.

Ethiopian Airlines aircraft slide show:

Avianca is coming to Chicago and Orlando with new routes

Avianca (Costa Rica) Airbus A320-233 N495TA (msn 3103) MIA (Tony Storck). Image: 926153.

The Avianca Group is adding new routes from Central America and South America to the United States. New daily service from Guatemala City to Chicago (O’Hare) will start on April 1, 2019. The new route will be operated by Avianca Costa Rica (formerly LACSA) and Airbus A320 aircraft according to Airline Route.

The carrier is also starting Guatemala City – Orlando service on August 2, 2018, three days a week, with Airbus A319s.

Additionally Avianca (Peru) will add the daily Lima – Orlando route on August 1, 2018 with Airbus A319 aircraft.

Finally Avianca (El Salvador) will add the San Salvador – Boston route on August 17, 2018. The route will be operated two days a week.

Copyright Photo:ย Avianca (Costa Rica) Airbus A320-233 N495TA (msn 3103) MIA (Tony Storck). Image: 926153.

Avianca (Costa Rica) aircraft slide show:

Lufthansa Group to offer 85 additional flights to Russia for the World Cup

  • Increase in daily flights to Moscow: departing up to six times a day from Frankfurt and up to four daily departures from Munichย 
  • Additional daily flight between Frankfurt and Moscow, from 1 June until 31 July served with Airbus A330
  • Lufthansa to fly the German national team to the World Cup on June 12

The Lufthansa Group is offering 85 additional flights to Russia on occasion of the 2018 World Cup. This means that football fans have up to 18,000 additional seats than usual to travel to the tournament and support their teams.

Lufthansa will be increasing its offering to Moscow (Domodedovo), namely flights from Frankfurt will be increased from four to up to six times a day, and from Munich from two daily flights to up to four flights a day.

Starting June 1 until July 31, an Airbus A330, with flight numbers LH1440 and LH1441 will be operating between Frankfurt and Moscow once a day, except on Fridays. Depending on the aircraft configuration, passengers will have up to 255 seats to choose from, including 42 Business Class seats for more comfort. ย Furthermore, passengers will have a great in-flight entertainment program to choose from: more than 160 feature films, over 250 TV options, more than 200 music albums and highlights from the world of football to get in the mood for the tournament. During the flight you can even watch live World Cup matches broadcasted via the Live TV Channels on your in-seat screen and via your personal electronic device (via FlyNet connection).

As a partner of the German Football Association (DFB), Lufthansa will by flying the German national team from Frankfurt to Moscow Vnukovo Airport on 12 June.

Photo: Lufthansa.

Now Boarding on United Airlines: Breakfast Tacos, Barbecue Sandwiches and more

Beginning May 1, United Airlines will offer customers several new dining, snacking and beverage options in its Choice Menu including egg and chicken chorizo tacos for breakfast and a barbecue chicken sandwich for lunch and dinner. On United’s premium transcontinental flights between Los Angeles and New York/Newark and between San Francisco and Boston and San Francisco and New York/Newark, customers will also enjoy new dessert and beverage selections. United will also become the first airline to offer Stella Artois aboard domestic and international flights this summer.

Egg and chicken chorizo tacos for breakfast

“We are continually developing menu selections that follow current food trends and emerge from the many destinations we serve,” said Charlean Gmunder, Vice President of Catering Operations. “We hope that our customers enjoy these new selections just as much as we enjoyed creating them using valuable feedback that was provided by customers and our employees.”

Breakfast, lunch and dinner: new selections for spring/summer

United is excited to announce the launch of egg and chicken chorizo tacos, a delicious new breakfast offering inspired by the exciting street food and food truck trends across the country. The tacos were in development for more than a year as the airline worked to create an authentic tasting breakfast taco. Using input from more than 800 customers and flight attendants – who sampled different recipe variations – the egg and chicken chorizo taco was the clear winner with taste-testers enjoying the taco’s spicy, yet subtle, chorizo flavor. The order of two (2) egg and chicken chorizo tacos features scrambled eggs, chicken chorizo, made with a mix of Monterey Jack and Swiss American cheeses, charred chipotle salsa and chives, served on corn and flour tortillas. For lunch/dinner United is introducing a new barbecue chicken sandwich that features pulled smoked chicken, barbecue sauce, cheddar jack cheese and a dill pickle plank served on a focaccia roll.

New craft beers take their spot and Stella Artois takes its first flight

Lagunitas Sumpin’ Easy Ale will be available onboard beginning May 1 along with a new craft IPA from New Belgiumยฎ, the Citradelic Tangerine IPA. The new offerings have been added in response to ongoing customer interest in craft style beers offered by some of the top microbreweries in the U.S.

Stella Artois, the well-known Belgian pilsner, will also be available in a can on domestic and international flights beginning this summer. United will be the first airline to feature Stella Artois on its flights, which is one of the world’s best-selling beers and is enjoyed in more than 80 countries.

New dessert, signature cocktail on premium transcontinental service

Beginning May 1, customers seated in United Business can enjoy Ghirardelli sundae toppings on premium transcontinental flights. The toppings include Barista Dark Chocolate Mini Chips, Ghirardelli Hot Fudge sauce, Ghirardelli Caramel sauce and Barista Caramel Flavored Mini Chips. A new signature cocktail โ€“ the Old Fashioned โ€“ made with whiskey and bitters and served with a classic orange rind garnish is also now an item offered on United’s premium transcontinental service. The Old Fashioned will also be complimentary in United Economy Plus and available for purchase in domestic Economy.

New and Updated Choice Menu Selections โ€“ Full Details

New Breakfast Items

May 1

Price

Details

Egg and chicken chorizo tacos

$8.99

Scrambled eggs, chicken chorizo,
Monterey Jack and Swiss
American cheeses, charred chipotle
salsa and chives in corn and flour
tortillas; two tacos per order.

New Lunch/Dinner Items

May 1

Price

Details

Barbecue chicken sandwich

$9.99

Pulled smoked chicken, barbecue
sauce, cheddar jack cheese and a dill
pickle plank on a focaccia roll.

New Beers Onboard
May 1

Price

Lagunitas Sumpin’ Easy Ale

$7.99

New Belgium Citradelic Tangerine IPA

$7.99

Stella Artois (June 1)

$7.99

New Premium Transcontinental Menu
Items

Details

Ghirardelli Ice Cream Toppings

Barista Dark Chocolate Mini Chips

Ghirardelli Hot Fudge sauce

Ghirardelli Caramel sauce

Barista Caramel Flavored Mini Chips

The Old Fashioned

Classic bourbon Old Fashioned made with a
touch of vanilla and orange by On the Rocks
Premium Cocktails.

All new Bistro on Board menu items will be available for purchase on most domestic flights with a scheduled flight time of more than three hours. Beer is complimentary in United Economyยฎ on trans-Atlantic flights; flights between the United States and Argentina, Brazil, Chile, Colombia, Ecuador and Peru; trans-Pacific flights between the United States and Australia, China, Japan, Korea, New Zealand, Singapore and Taiwan.

Volotea launches a new base in Marseille

Volotea Boeing 717-2BL EI-FBL (msn 55183) PMI (Ton Jochems). Image: 938359.

Volotea, the airline of mid and smallโ€sized European cities, on April 19, 2018 inaugurated its new base in Marseille, where two aircraft will be permanently based and 60 local jobs have been created. ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย 

Volotea has inaugurated its eleventh base at Marseille airport, where two aircraft Boeing 717 will be based to allow a significant increase in routes and frequencies. The event, presented by Carlos Muรฑoz, Founder and CEO of Volotea, has been hosted by Philippe Bernand, President of Marseille Provenceโ€™s Airport. The main institutions in Marseille attended the event and welcomed the airline.

Above Photo: Volotea.

Since Volotea started operating in Marseille in 2014, the number of passengers has increased constantly year-on-year. In 2017, the airline has carried 150,000 passengers from Marseille, up by 77% in comparison to the previous year and achieving an average 83% seat load.

This year, Volotea offers more than 286,000 seats to fly from/to Marseille, adding nine new routes to Biarritz, Caen, Corfu, Funchal, Heraklion, Menorca, Mykonos, Santorin and Majorca. Ten destinations out of the total of nineteen are exclusive from the airport, only served by Volotea. In the first quarter of 2018, the recommendation rate of Volotea in Marseille was 92.5%.

Voloteaโ€™s Growth

Volotea has carried 15 millionth passengers since its first flight in 2012 and more than 4.8 million in 2017.

In 2018, Volotea has opened 58 new routes to serve a lineup of 293 routes, operating flights to 78 mid and small-sized European cities in 13 countries: France, Italy, Spain, Germany, Greece, Croatia, the Czech Republic, Albania, Portugal, Malta, Austria, Ireland and Luxembourg. The airline expects to carry between 5.7m and 6.0 passengers in 2018.

Volotea has currently eleven bases: Venice, Nantes, Bordeaux, Palermo, Strasbourg, Asturias, Verona, Toulouse, Genoa, Bilbao and Marseille, opened today, April 19th 2018. Additionally, Athens will be launched in the following weeks.

Volotea headcount is 875 employees and will also create another 250 new jobs in 2018 to capitalize its growth in activity.

In 2018, Volotea operates its network with 32 aircraft, Boeing 717s and Airbus A319s. Both models are recognized for their comfort and reliability, with Volotea offering reclining seats which are 5% wider than the average in airlines.

The Airbus A319 is the aircraft model selected for its future growth and will allow the company to increase its passenger capacity by 20% to 150 seats and to serve longer routes.

Top Copyright Photo:ย Volotea Boeing 717-2BL EI-FBL (msn 55183) PMI (Ton Jochems). Image: 938359.

Volotea aircraft slide show: