Lufthansa Group refutes false allegations by Ryanair

Lufthansa Group has issued this statement:

Irish low-cost carrier Ryanair issued a press release on its planned takeover of Laudamotion. The Ryanair allegations are completely unfounded.

Lufthansa has fully complied with all EU Commission obligations regarding the required transfer of aircraft to Laudamotion. This is true of both the number of aircraft involved and their leasing terms.

All the aircraft covered by the EU derogation decision were offered for sale to Laudamotion by Lufthansa. Laudamotion rejected this offer, preferring to lease the aircraft instead.

Laudamotion has recently failed – repeatedly – to meet its contractually-agreed lease payment obligations.

As the Eurowings Group needs aircraft, Lufthansa has exercised its contractually-agreed right of termination because of a violation of contractual terms by Laudamotion, and has terminated the lease agreements on nine aircraft due to the non-payment of the lease amounts involved.

Ryanair welcomes EU approval of its Laudamotion proposal

Ryanair on July 12, 2018welcomed the EU Commission’s decision to approve Ryanair’s proposed acquisition of a 75% interest in Austrian airline, Laudamotion (Ryanair currently owns 24.9%). Ryanair has entered into partnership with Niki Lauda to offer competition, lower fares, and more choice for consumers in Austria, Germany, and Spain, which is where the majority of Laudamotion services currently take place.

However, Laudamotion is currently under threat by Lufthansa who are attempting to remove the 9 aircraft Lufthansa was obliged by the European Commission to provide to Laudamotion in order to allow Laudamotion to restart services.

This is the latest in a series of efforts by Lufthansa to destabilise and damage Laudamotion, which has seen:

– Lufthansa fail to deliver 2 of the 11 aircraft they were required to under the EU Competition decision concerning Lufthansa’s acquisition of Air Berlin.

– Some of the aircraft that Lufthansa had committed to deliver being delayed until after the summer 2018 season, further reducing Laudamotion’s ability to take up slots and offer S2018 flights and services.

– Laudamotion only able to operate a 19 aircraft fleet in summer 2018 by wet leasing 10 B737 aircraft from Ryanair.

– Lufthansa Group delay payment of over €1.5m of wet lease payments properly due to Laudamotion, for flights which Laudamotion operated for Lufthansa in March, April and May.

Ryanair remains committed to bringing competition and choice to Austrian, German and Spanish markets through this investment in Laudamotion and called on the competition authorities to halt Lufthansa’s repeated abuses of its dominant position, which are designed to harm competition and consumers.

Ryanair’s Chief Legal & Regulatory Officer, Juliusz Komorek said:

“We welcome the EU Commission’s decision to approve Ryanair’s proposed acquisition of a 75% interest in Laudamotion. Ryanair remains committed to bringing competition, choice and low fares to the Austrian, German and Spanish markets through our investment in Laudamotion. We urge the EU competition authorities to take action and prevent any further attempts by Lufthansa to damage competition through its anti-consumer behaviour.”

Drukair places order for a new ATR 42-600 equipped with the ClearVision™ system

Drukair and the world’s leading turboprop aircraft manufacturer ATR today announced the signing of an order for an ATR 42-600 equipped with the new ClearVision™ system. The airline will be the first operator to benefit from the advantages of ClearVision’s™ Combined Vision System (CVS), incorporating the Enhanced Vision System (EVS) which improves visibility and the Synthetic Vision System (SVS) which generates images of terrain and obstacles using an extensive database. The combination of these solutions provides pilots with outstanding vision and consequently improves their situational awareness. This new ATR 42-600 is expected to be delivered to Drukair in July 2019.

Drukair has been operating ATR 42s since 2011 and operates in challenging environments, serving small airports in the Himalayan Mountains. Certified last year, the ATR -600’s latest Standard 3 avionics includes RNP AR 0.3/0.3, which further enhances airfield accessibility and operational performance.

ATR predicts that regional aviation will require more than 600 40-60-seat turboprop aircraft over the next 20 years. The ATR 42-600 is currently the only 50-seater turboprop in production and a proven route opener. In 2017, ATR aircraft opened over 150 routes and 30% of the overall traffic growth over the next 20 years will be represented by routes that do not exist today.

Tandi Wangchuk, Chief Executive Officer of Drukair, said: “Purchasing another ATR was a natural decision. The improvements delivered by the -600 series’ new Standard 3 avionics, along with the ClearVision™ CVS system add significant operational and thus economic value. We also look forward to welcoming passengers into the most modern cabin in regional aviation and offering them the most comfortable in-flight experience possible.”

ATR Chief Executive Officer, Christian Scherer, remarked: “Drukair’s decision to purchase the latest version of our product not only validates the versatility and operational efficiency of our -600 series aircraft, but also affirms the value of our policy of continuous development. Offering valuable solutions which have a genuine and immediate impact on our customer’s business will always be a priority for us at ATR. We look forward to contributing to the famous “Gross National Happiness” of the people of Bhutan, long into the future.”

Photo: ATR.

Aurigny signs Letter of Intent for three ATR 72-600s equipped with the new ClearVision™ system

Aurigny and market leading turboprop manufacturer ATR today announced the signature of a Letter of Intent for the purchase of three ATR 72-600s, subject to the approval of the States of Guernsey. These three aircraft are expected to replace the current three ATR 72-500s operated by the airline.

These new ATR -600s will feature the new ClearVision™ Enhanced Vision System (EVS), which uses an external camera to display an augmented outside-view in real-time to a head-mounted visor, worn by the pilot. The EVS significantly improves a pilot’s vision and as Guernsey is situated in the English Channel it is regularly affected by fog, often at short notice, leading to disruptions to flight operations. An ATR equipped with the ClearVision™ EVS addresses this pain point of the pilot’s limited visibility and could have saved 50% of the forbidden landings (24 of 48) in Guernsey, over the period of a year. Aurigny anticipates that this innovation will deliver significant savings in their future operations.

ClearVision™ is an option on ATR’s latest avionics suite, Standard 3, which delivers important operational improvements. In addition to the EVS selected by Aurigny, ClearVision™ also offers a Synthetic Vision System (SVS) that provides the pilot’s Head-Up Display with digital images of terrain and obstacles, from an extensive database. Operators can also opt for a Combined Vision System (CVS), combining the EVS and SVS, and offering pilots the best possible vision and situational awareness.

ATR anticipates that in the next 20 years, there will be a need for over 3000 turboprops while regional air traffic will grow 4.5% on a yearly basis. A significant proportion of this growth will come from route creation, with 30% of the traffic growth coming from routes that do not currently exist. ATR aircraft are proven route openers, with the -600 series aircraft opening over 100 routes a year on average.

Aurigny Chief Executive Officer, Mark Darby, said: “Once we have the approval from the States of Guernsey to proceed, the entry into service of the new aircraft equipped with the new ClearVision™ system will reduce flight disruptions, which will be very good news for the people of Guernsey, who rely on air travel for essential connectivity. Beyond beating the fog, upgrading to the -600 series will also further enhance the operational efficiency of Aurigny. We are also excited about welcoming our passengers into the modern ATR cabin and offering them even more comfort when they fly.”

ATR Chief Executive, Christian Scherer, remarked: “Aurigny’s pioneering use of ClearVision™ will be a first in commercial aviation, here in Europe. Being the first to offer such a solution to our clients and operators demonstrates ATR’s constant desire to match their needs. In the regional aviation market, many airlines fly in challenging locations and ClearVision™ offers an opportunity to give pilots increased visibility and improved situational awareness without requiring expensive upgrades to an airport’s infrastructure – which in many occasions may even be completely unfeasible.”

Photo: ATR.

Air Saint-Pierre commits to purchase an ATR 42-600

Air Saint-Pierre has signed a Memorandum of Understanding (MOU) with market leading turboprop manufacturer ATR for the purchase of a new ATR 42-600 aircraft.

Air Saint-Pierre’s ATR provides the island with essential connectivity, flying to several locations in Canada. In addition to benefitting from ATR’s unbeatable economics, the aircraft’s proven ability to operate effectively in windy conditions is vital for Air Saint-Pierre. The new aircraft will replace the airline’s existing ATR 42-500 which has been in operation since 2009. This purchase represents the latest step in the long relationship between the airline and ATR, which began with their acquisition of an ATR 42-300 in 1994.

As with its predecessor, the -600 series is certified to take-off and land in cross wind conditions of 45 knots, a unique capability which is essential to operating in the challenging conditions of Saint-Pierre and Miquelon.

Air Saint-Pierre Chief Executive Officer Benoit Olano said “It makes perfect sense for us to continue our partnership with ATR by acquiring the latest generation -600 series aircraft. Every operator is looking for the most efficient aircraft on the market to maximise their operations, however, with a small fleet it is vital that we invest in an aircraft that really delivers on every single criteria that we require. The ATR does this, and will provide the people of Saint-Pierre and Miquelon with the continuing connectivity they need.”

All photos by ATR and Air Saint-Pierre.

Air Botswana signs for two ATR 72-600s

Air Botswana today signed a firm order for two ATR 72-600s. Having operated ATR -500 series aircraft since 1996, the Botswanan national flag carrier has been an ATR operator for more than 20 years and will now upgrade and restructure its fleet with the addition of the latest generation turboprop aircraft. The ATR -600 series is the market leader in the regional aviation segment with a 40% fuel burn advantage against its turboprop competitor. It is a proven route opener, having opened 150 routes in 2017 thanks to its versatility and operational efficiency.

The aircraft will be configured with a 70-seat, dual class cabin, and deliveries are scheduled to begin in the fourth quarter of this year. They are also equipped with the newest navigation aid tools. The airline currently operates a fleet of three ATR 42-500s and one ATR 72-500. With this deal, the airline will start a progressive replacement of their former turboprop fleet, adding the newest standards of comfort.

ATR estimates that there will be the need for over 3000 turboprops in the next twenty years, with more than 10% of these aircraft destined for Africa & the Middle East and foresees the creation of some 300 new routes.

Copyright Photo: The new ATR 72-600s are expected to replace the older ATRs. Air Botswana ATR 72-212A (ATR 72-500) A2-ABS (msn 788) JNB (Paul Denton). Image: 910347.

Air Botswana aircraft slide show:

ATR displays the all-new ATR 42-600 for Silver Airways at Farnborough International Airshow 2018

ATR will be present at the Farnborough International Airshow 2018. Attendees will have the opportunity to visit an ATR 42-600 in the colors of Silver Airways, leased from Nordic Aviation Capital, in the static display area. Later this year Silver Airways will become the very first ATR-600 series operator in the US.

On the occasion of the airshow, ATR will display some of its recent innovations. Close to the ATR 42-600 aircraft on display, visitors will have the chance to experience, in a dedicated exhibition area, the Neo Classic and Neo Prestige new passenger seats, as well as the Cabinstream system that allows passengers to stream multimedia content.

ClearVision™, which is a first in commercial aviation will also be demonstrated. The system improves a pilot’s situational awareness with optimised Head-Up capabilities which can also be coupled with Enhanced and Synthetic Vision Systems.

Image: Silver Airways.

Atlas Air Worldwide announces guaranteed interview program for pilots at GoJet Airlines

Atlas Air Worldwide Holdings, Inc. today said that its Atlas Air, Inc. unit and GoJet Airlines have entered an agreement guaranteeing GoJet pilots an interview with Atlas after as little as one to two years of service. First Officers with military flying experience will be eligible to interview with Atlas after just one year of service at GoJet, while all other pilots will be eligible to interview after a minimum of two years of service.

The world’s largest operator of modern Boeing 747 all-cargo aircraft, Atlas Air Worldwide is widely recognized as a leading global provider of outsourced aircraft and aviation operating services. With a focus on express, e-commerce and fast-growing markets, the company is in an era of significant business growth and development, with opportunities to expand its cargo and passenger operations with existing customers and with new ones.

“This agreement opens the door for GoJet pilots to potentially fly the Boeing 747 or 767, among the most storied aircraft in aviation history,” added GoJet Director of Flight Operations Randy Bratcher. “The opportunity to join the Atlas team and operate big Boeings all over the world is a very attractive career move for our pilots.”

Current GoJet pilots with the requisite time in service may immediately opt-in to the Atlas guaranteed interview program, while new GoJet pilots may do so as soon as time-in-service requirements are met.

With GoJet mentoring and a guaranteed interview, pilots invited to join Atlas can look forward to advancing their careers with a growing global air carrier, the opportunity to fly wide-body Boeing aircraft, and airline transportation to and from their base.

All photos by Atlas Air and GoJet Airlines.

El Al launches new in-flight Wi-Fi system, powered by Viasat

El Al Israel Airlines announced it officially launched its new fast, reliable commercial in-flight Wi-Fi service, powered by global communications company, Viasat.

El Al was Viasat’s European launch customer. Since first announcing their relationship, both companies undertook broad market studies focused on in-flight Wi-Fi passenger demand, engagement and service offerings, including a customer beta phase to determine internet package types. El Al also began to re-energize its fleet taking on new Boeing 787 Dreamliners—a recent addition to Viasat’s certified platforms.

As of today, 15 El Al aircraft have been outfitted with Viasat’s latest equipment, providing high-speed connectivity to El Al’s mix of Boeing 787 Dreamliners, Boeing 737-900 aircraft and Boeing 737-800 planes. By mid-2020, EL AL expects to have the majority of its fleet connected with the Viasat service.

First high-speed Wi-Fi flight
Earlier this week, El Al held its “inaugural high-speed Wi-Fi service flight,” which flew from Tel Aviv to Paris on one of its new Dreamliner aircraft. There were 128 devices connected—many that were streaming movies, videos, music and even the World Cup semifinal. More than half of the passengers were filming and streaming videos—some via Facebook Live, while others were capturing and uploading videos and pictures of their journey, which they posted to multiple social media sites from Facebook and Instagram to Twitter.

Service packages
El Al will offer three internet service packages:

Basic: Passengers can use their smartphones and tablets for instant messaging applications such as WhatsApp, to access email and browse El Al’s free sites. The package is free during the launch period.
Social: This package builds on the Basic plan, letting passengers use their smartphones and tablets to access instant messaging applications, email, free site browsing and for viewing short videos of up to three minutes. This package cost per passenger per flight is $9.99, with discounted rates for Matmid Frequent Flyers and FLYCARD holders.
Business: This premium plan lets passengers use their smartphones, tablets and laptops for instant messaging, email and free site browsing. Unlike the other plans, users of the Business package gain additional connectivity capabilities, including streaming movies, music and more as well as VPN access. Package cost per passenger per flight is $19.99, also with discounted rates for Matmid Frequent Flyers and FLYCARD holders.

During the introductory trial period for international flights from Europe to North America, El Al will offer the service free of charge until the fourth quarter of 2018.

About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. For more than 30 years, Viasat has helped shape how consumers, businesses, governments and militaries around the world communicate. Today, the Company is developing the ultimate global communications network to power high-quality, secure, affordable, fast connections to impact people’s lives anywhere they are—on the ground, in the air or at sea.

El Al aircraft slide show:

Delta reports 2Q pre-tax income of $1.6 billion

Delta Air Lines today reported financial results for the second (June) quarter 2018. Highlights of those results, including both GAAP and adjusted metrics, are below and incorporated here.

Adjusted pre-tax income for the June quarter 2018 was $1.6 billion, a $183 million decrease from the June 2017 quarter, as record revenues partially offset the approximately $600 million impact of higher fuel prices.

“With an expected $2 billion higher fuel bill for 2018, we are now forecasting our full-year earnings to be $5.35 to $5.70 per share. We have seen early success in addressing the fuel cost increase and offset two-thirds of the impact in the June quarter,” said Ed Bastian, Delta’s Chief Executive Officer. “With strong revenue momentum, an improving cost trajectory, and a reduction of 50-100 bps of underperforming capacity from our fall schedule, we have positioned Delta to return to margin expansion by year end.”

Revenue Environment

Delta’s adjusted operating revenue of $11.6 billion for the June quarter improved 8 percent, or $880 million versus the prior year. This quarterly revenue result marks a record for the company, driven by improvements across Delta’s business, including double-digit increases in both cargo and loyalty revenue.

Total unit revenues excluding refinery sales (TRASM) increased 4.6 percent during the period driven by strong demand across all entities and improving yields. Foreign exchange drove a nearly one point benefit to the quarter.

“The great service of the Delta people, strong demand for our product, and momentum across our business allowed Delta to deliver the highest quarterly revenue in our history and increase our revenue premium to the industry,” said Glen Hauenstein, Delta’s President. “While we are pleased with our revenue performance in the quarter, accelerating the recapture of the recent fuel price increases is the number one focus for our commercial team. We expect total unit revenue growth of 3.5 to 5.5 percent for the September quarter as we benefit from our commercial initiatives and recapture higher fuel costs.”

September 2018 Quarter and Full Year Guidance

Delta expects solid top-line growth, an improving cost trajectory, and a return to margin expansion.

Cost Performance

Total adjusted operating expenses for the June quarter increased $1.1 billion versus the prior year quarter, with more than half of the increase driven by higher fuel prices.

Adjusted fuel expense increased $578 million, or 33 percent, relative to June quarter 2017. Delta’s adjusted fuel price per gallon for the June quarter was $2.17, which includes $45 million of benefit from the refinery.

CASM-Ex increased 2.9 percent for the June 2018 quarter compared to the prior year period, a one point improvement from the March quarter. Cost pressures were driven by higher revenue-related costs and increased aircraft rent and depreciation associated with Delta’s fleet initiatives.

“We expect the sequential improvement in cost trends to continue in the second half of the year as we see additional benefits from our fleet restructuring, our One Delta initiatives, and annualization of accelerated depreciation as well as prior investments in our product,” said Paul Jacobson, Delta’s Chief Financial Officer. “Our cost structure is an essential component of sustainable performance, and by keeping our cost growth below 2 percent for the year, we are positioning the company to expand margins by year end.”

Adjusted non-operating expense improved by $43 million versus the prior year, driven primarily by pension expense favorability. Adjusted tax expense declined $255 million for the June quarter primarily due to the reduction in Delta’s book tax rate from 34 percent to 23 percent.

Cash Flow and Shareholder Returns

Delta generated $2.8 billion of operating cash flow and $1.4 billion of free cash flow during the quarter, after the investment of $1.4 billion into the business primarily for aircraft purchases and improvements.

For the June quarter, Delta returned $813 million to shareholders, comprised of $600 million of share repurchases and $213 million in dividends.

The Board of Directors declared a quarterly dividend of $0.35 per share, an increase of 15 percent over previous levels. This change will bring the total annualized dividend commitment to approximately $950 million, consistent with the company’s target of returning 20 to 25 percent of free cash flow to owners over the long-term. The September quarter dividend will be payable to shareholders of record as of the close of business on July 26, 2018, to be paid on August 16, 2018.

Strategic Highlights

In the June quarter, Delta achieved a number of milestones across its five key strategic pillars.

Culture and People

Accrued an additional $400 million in profit sharing and paid out $23 million in Shared Rewards as a testament to the outstanding performance made possible by Delta’s more than 80,000 employees around the world.
Ranked No. 1 corporate blood donor by the American Red Cross for the most recent year at 11,085 units of blood from 214 Delta sponsored blood drives.
Became a National Signature Partner of Junior Achievement’s 3DE program with a $2 million contribution over the next five years.

Operational Reliability

Delivered 58 days of zero system cancellations on a year-to-date basis, up 23 days from 2017.
Achieved mainline on-time performance (A0) of 71.7 percent year-to-date, up 1.4 percent from the prior year.

Network and Partnerships

Launched a joint venture with Korean Air on May 1, expanded reciprocal codeshare flying to more than 50 Korean Air-operated markets and 400 Delta-operated markets, and announced new service from Seattle to Osaka and Minneapolis/St. Paul to Seoul in partnership with Korean Air to begin in 2019.
Continued Delta’s global expansion with the launch of new service including Los Angeles to Paris and Amsterdam; Indianapolis to Paris; and Atlanta to Lisbon. Delta also announced plans to begin nonstop flights between the United States and Mumbai, India, in 2019.

Customer Experience and Loyalty

Debuted the first refreshed 777-200ER aircraft featuring the award-winning Delta One suite, the popular Delta Premium Select cabin and 9-abreast seating in the Main Cabin in addition to all new interior features and in-flight entertainment.
Launched new uniforms for 64,000 Delta employees worldwide, created by acclaimed designer Zac Posen and built with Lands’ End quality. The designs embrace innovative fit, form and function, and carry Delta into the future in style.
Opened the newly renovated Delta Sky Club at Ronald Reagan Washington National Airport (DCA) with an additional 1,800 square feet of space for guests to enjoy.

Investment Grade Balance Sheet

Completed a $1.6 billion unsecured debt offering through a mix of three-, five-, and 10-year notes at a blended yield of 3.85 percent. The proceeds from this offering were used to refinance secured debt and will lower Delta’s overall interest expense by $20 million annually on a run-rate basis.
Increased revolver capacity by $635 million, to a total of $3.1 billion in undrawn revolving credit facilities.

June Quarter Results

Special items for the quarter consist primarily of mark-to-market adjustments on refinery fuel hedges and unrealized gains/losses on investments.

Top Copyright Photo (all others by Delta): Delta Air Lines Boeing 777-232 LR N702DN (msn 29741) “The Spirit of Atlanta” AMS (Ton Jochems). Image: 941962.

Delta aircraft slide show (Boeing):