Horizon Air converts two Bombardier Q400 options into firm orders

Horizon Air Industries, Inc. (Horizon Air) (Alaska Horizon) (Seattle/Tacoma) has converted two of seven previously acquired Bombardier DHC-8-402 (marketed as the Q400 NextGen) aircraft options to firm orders. The airline retains its options on another five Q400 NextGen aircraft. Horizon Air and its sister carrier, Alaska Airlines are subsidiaries of Alaska Air Group.

Horizon Air’s Q400 aircraft are equipped with Head-up Guidance Systems (HGS) for all-weather operations, Wide Area Augmentation Systems (WAAS) with approach guidance (LPV) for ILS-like landing minima at remote runways and RNP AR 0.1 to fly curved approaches to airports in difficult terrain.

Established in 1981, Horizon Air was acquired in 1986 by Alaska Air Group, Inc., the parent company of Alaska Airlines. At its start, the airline operated two aircraft and served three destinations in Washington state. Today, Horizon flies its 76-seat Q400 aircraft on behalf of Alaska Airlines and serves 43 cities in the western United States, Canada and Mexico. Horizon Air, which is also a codeshare partner of American Airlines and Delta Air Lines, operates both the longest (Seattle to Fresno, 748 miles/1,204 km) and shortest (Pullman to Lewiston, 26 miles/42 km) turboprop routes currently being served by regional carriers in the U.S.

In 2014, Bombardier and Horizon Air signed a five-year heavy maintenance agreement whereby Bombardier will perform heavy maintenance tasks for the airline’s fleet of Q400 aircraft at Bombardier’s service center in Tuscon, Arizona.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N448QX (msn 4409) arrives in Anchorage, Alaska.

Alaska Horizon aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Alaska-Horizon-Horizon-Air

Aruba Airlines wants to expand to the United States

Aruba Airlines (Aruba) wants to expand its route network to Florida and other U.S. markets. The island carrier has filed with the U.S. Department of Transportation to operate charter and scheduled flights to the USA according to Flightglobal.

The carrier commenced scheduled passenger operations with two Airbus A320s on May 13, 2013 on the Aruba – Maracaibo route. The Aruba – Panama City route was added on June 28, 2013. Valencia has also been added.

Copyright Photo: Michel Saint-Felix/AirlinersGallery.com (all others by Aruba Airlines). This colorful livery was introduced in October 2012 on the pictured Airbus A320-232 P4-AAA (msn 582) (above).

Virgin America extends its partnership with the San Francisco Giants, adds a new logo to Airbus A320 N849VA

Virgin America (San Francisco) and the San Francisco Giants of Major League Baseball yesterday (January 21) announced a multi-year partnership extension, which maintains the Bay Area-based airline’s position as the “Official Airline of the San Francisco Giants” through the end of 2018. This announcement came during an “orange carpet” send-off for the 2014 World Championship Trophy as it heads to New York City for the East Coast leg of a three-month World Championship Trophy Tour presented by Bank of America.

The trophy will fly in style (above), riding in Virgin America’s exclusive eight-seat First Class cabin from San Francisco International Airport (SFO) to John F. Kennedy International Airport (JFK) onboard the Virgin America Airbus A320 aircraft “Fly Bye Baby,” (below) named in honor of the hometown team. Onboard the flight, Giants President and CEO Larry Baer will invite fellow Virgin America guests to grab photos with the trophy and will host a live Twitter chat at 35,000 feet using the airline’s inflight WiFi. Guests and fans alike are encouraged to follow along and submit questions using the hashtags #sfgtrophy and #flytogether.

Copyright Photo: Mark Durbin/AirlinersGallery.com (all others by Virgin America). Airbus A320-214 N849VA (msn 4991) has received this updated “World Champions 2014” logo for 2015.

The extended partnership includes unique co-branding elements at AT&T Park, including the “Virgin America Loft,” a premium customized suite located in right field above McCovey Cove, and the “Virgin America Club Level” that features the airline’s signature cabin mood-lighting. In 2012, the airline first unveiled its Giants themed “Fly Bye Baby” aircraft that was updated in 2014 with a crowdsourced #FlyTogether design populated with the photos of hundreds of Giants fan who submitted photos on Instagram and Twitter. Today at SFO, Virgin America unveiled the aircraft’s newest design – the 2014 World Championship mark – in celebration of the San Francisco Giant’s latest World Series Victory.

Once in the Big Apple, the trophy will be available to Giants fans that have followed the team for generations – a history that dates back to when the team was based in New York before moving to San Francisco in 1958. A public viewing of the trophy will be held on Saturday, January 24 from 2:00 to 6:00 p.m. at Finnerty’s Bar in Manhattan.

In addition to a Main Cabin that offers custom-designed leather seating with a deeper, more comfortable pitch, the airline’s First Class cabin offers plush white leather seating with 55 inches of pitch, 165 degrees of recline and lumbar massagers. The carrier’s Main Cabin Select service offers 38-inches of pitch, free food and cocktails, an all-access pass to media content, dedicated overhead bins and priority check-in/boarding. The Red® in-flight entertainment platform offers guests their own seatback touch-screen TV, with more than 20 films, live TV, Google Maps, videogames, a 3,000 song library and an on-demand menu, which allows flyers to order a cocktail or snack from their seatback any time during a flight. Virgin America’s airport lounge – The Loft – is located at LAX and its Elevate frequent flyer program offers no black-outs or restrictions on rewards seats with three levels of status including Elevate Gold and Elevate Silver.

Virgin America aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-3/Airlines-United-States3-QZ/Virgin-America

American Airlines to launch the new Dallas/Fort Worth – Beijing route

American Airlines (Dallas/Fort Worth) will begin operating its new daily service between Dallas/Fort Worth International Airport (DFW) and Beijing Capital International Airport (PEK) on May 7, marking the airline’s sixth daily flight to Asia from DFW and the only nonstop flight connecting DFW and Beijing. With the addition of this service, American will offer 11 routes between the U.S. and Asia. Customers may begin booking flights on the new route this Saturday, Jan. 24.

Daily DFW-PEK Service Schedule (all times local):

AA 89
Departs DFW at 10:40 a.m.
Arrives at PEK at 2:15 p.m. the following day

AA 88
Departs PEK at 4:25 p.m.
Arrives at DFW at 5 p.m.

The new flight from DFW will complement American’s existing service from Chicago O’Hare International Airport (ORD) to Beijing. With the addition of Beijing, American will offer nonstop service from Dallas/Fort Worth to five key markets in Asia – Beijing, Hong Kong, Seoul, Shanghai and Tokyo.

American will operate its service between DFW and Beijing with a Boeing 777-200 aircraft. The airline is retrofitting all 47 of its 777-200s to refresh the cabins and enhance the premium experience on international flights. The retrofitted 777-200 features a Business Class product designed especially for American’s customers, with a fully lie-flat seat, direct aisle access and a private flying experience. The plane has a modern interior – including a walk-up bar – with unique lighting, a dramatic archway and a spacious look. It also has Main Cabin Extra and all Main Cabin seats have in-seat entertainment systems.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-223 ER N797AN (msn 30012) arrives at Los Angeles International Airport.

American Airlines aircraft slide show (current livery only):

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/American-Airlines

Southwest Airlines reports a record 4Q net profit of $190 million and $1.1 billion for 2014, its 42nd consecutive year of profitability

Southwest Airlines Company (Dallas) today reported its fourth quarter and annual 2014 results:

Record fourth quarter net income, excluding special items1, of $404 million, or $.59 per diluted share, compared with fourth quarter 2013 net income, excluding special items, of $236 million, or $.33 per diluted share. This exceeded the First Call consensus estimate of $.55 per diluted share.

Fourth quarter net income of $190 million, or $.28 per diluted share, which included $214 million (net) of unfavorable special items, compared with net income of $212 million, or $.30 per diluted share, in fourth quarter 2013, which included $24 million (net) of unfavorable special items.

Record annual net income, excluding special items, of $1.4 billion, or $2.01 per diluted share, compared with 2013 net income, excluding special items, of $805 million, or $1.12 per diluted share.

Record annual net income of $1.1 billion, or $1.64 per diluted share, which included $261 million (net) of unfavorable special items, compared with net income of $754 million, or $1.05 per diluted share, in 2013, which included $51 million (net) of unfavorable special items.

Return on invested capital, before taxes and excluding special items (ROIC)1, of 21.2 percent for 2014, as compared with 13.1 percent for 2013.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “We are extremely proud to report record annual 2014 net income, excluding special items, of $1.4 billion, or $2.01 per diluted share. Our 2014 total operating revenues were strong, increasing 5.1 percent to a record $18.6 billion. Our 2014 operating cost performance was also solid, with costs declining, year-over-year. Our ROIC for 2014 was 21.2 percent. This remarkable achievement would not have been possible without the hard work, perseverance, and determination of our Southwest People, and I commend them for these exceptional results, which earned them a record $355 million in profitsharing for 2014, up 56 percent from the previous record in 2013. Our strategic plan has come together successfully, and we have realized significant contributions from the AirTran integration, fleet modernization efforts, and the continued growth of our Rapid Rewards program.

“Our balance sheet and liquidity remain strong, with cash and short-term investments of $3.0 billion at the end of 2014. We generated strong free cash flow1 of $1.1 billion in 2014, allowing us to repurchase $955 million of Southwest common stock, pay $139 million to Shareholders in dividends, and reduce debt and capital lease obligations by $261 million, net, during the year.

“We concluded 2014 with record fourth quarter profits, excluding special items, of $404 million, or $.59 per diluted share. Total operating revenues were a fourth quarter record $4.6 billion. On a year-over-year basis, our fourth quarter 2014 revenue per available seat mile increased 2.0 percent, which is outstanding considering the 2.4 percent increase in available seat miles (ASMs); the 2.6 percent increase in stage length; the 2.4 percent increase in seats per trip2 (gauge); and the large percentage of our capacity under development. Customer demand remained strong, resulting in a record fourth quarter 2014 load factor of 82.0 percent, up 1.6 points from fourth quarter 2013. We are pleased with our passenger unit revenue and booking trends thus far in January, considering the continuing impact of increasing ASMs, stage length, and gauge, and the large percentage of our capacity under development. Based on these trends, we currently expect our first quarter 2015 passenger revenues to grow in line with the expected six percent increase in first quarter 2015 ASMs, both on a year-over-year basis.

“Our fourth quarter 2014 unit costs, excluding special items, were down 3.8 percent year-over-year, primarily as a result of significantly lower fuel prices. Our first quarter 2015 cost outlook is also favorable. With the collapse in fuel prices since September 2014, fuel prices have declined nearly 50 percent. Based on our existing fuel derivative contracts and market prices as of January 16, 2015, we estimate our first quarter 2015 economic fuel costs to be approximately $1.90 per gallon, which would result in approximately half a billion dollars in year-over-year fuel cost savings for first quarter alone. Excluding fuel and oil expense, special items, and profitsharing, we currently expect first quarter and full year 2015’s unit costs to decline in the one to two percent range, compared with the same year-ago periods, driven largely by our capacity growth and ongoing fleet modernization initiatives.

“December 28, 2014, marked the sunset of the AirTran brand. Overall, the AirTran acquisition resulted in net pre-tax synergies (excluding acquisition and integration expenses) of approximately $500 million in 2014, exceeding our $400 million target.

“We launched international service on Southwest Airlines to seven destinations in five countries in 2014, which will grow to seven countries with our plans to begin service to San Jose, Costa Rica; Puerto Vallarta, Mexico; and Belize City, Belize, in 2015, pending government approvals. We have been very pleased with the overall performance of our markets under development, most notably Dallas Love Field, New York LaGuardia, and Reagan National.

“Without question, 2014 was a monumental year for Southwest Airlines with many notable achievements. My gratitude goes out to our outstanding Employees for their tremendous efforts and the successful execution of our strategic initiatives, which allowed us to achieve our financial goals and expand our service internationally. As we enter 2015, we are well positioned financially and excited about our growth opportunities ahead. We remain steadfast in our unwavering commitment to preserve our financial strength, provide job security for our Employees, protect our low fare brand, and deliver adequate returns to our Shareholders. We live up to that commitment by offering friendly, reliable, and low cost air travel, and by expanding our network in a sensible manner.”

Read the full report: CLICK HERE

Listen to the conference call at 12:30 EST today to discuss the results: CLICK HERE

Copyright Photo: Raul Sepulveda/AirlinersGallery.com. Boeing 737-7H4 N909WN (msn 32458) taxies at San Juan in the new Beats Music – Don’t miss a beat special livery.

Southwest Airlines aircraft slide show (current livery):

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-3/Airlines-United-States3-QZ/Southwest-Airlines-Current

Alaska Air Group reports 4Q GAAP net income of $148 million and $605 million for 2014, its best quarter/year ever

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported fourth quarter 2014 GAAP net income of $148 million, or $1.11 per diluted share, compared to GAAP net income of $78 million, or $0.56 per diluted share in 2013. Excluding mark-to-market fuel hedge gains of $6 million ($4 million after tax, or $0.03 per diluted share), a benefit related to the curtailment of certain postretirement benefit plans and a one-time gain associated with the settlement of a legal matter for $30 million in aggregate ($19 million after tax, or $0.14 per diluted share), the company reported record fourth quarter 2014 net income of $125 million, or $0.94 per diluted share, compared to net income, excluding mark-to-market fuel hedge gains, of $77 million, or $0.55 per diluted share, in 2013.

The company reported full-year 2014 GAAP net income of $605 million, compared to $508 million in the prior year. Excluding the impact of the items noted in the table below, the company reported record net income of $571 million, or $4.18 per diluted share for 2014, compared to net income of $383 million, or $2.70 per diluted share in 2013.

This is a company record for earnings for the fourth quarter and any year.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alaska Airlines Boeing 737-890 N525AS (msn 35692) with Aviation Partners Boeing Split Scimitar Winglets climbs away from the runway at Los Angeles International Airport.

Alaska Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Alaska-Airlines

United Airlines has a break-out year, reports net income of $1.97 billion for 2014

United Airlines (Chicago) today reported full-year 2014 net income of $1.97 billion, an increase of 89 percent year-over-year, or $5.06 per diluted share, excluding $834 million of special items. Including special items, UAL reported full-year net income of $1.13 billion, or $2.93 per diluted share. UAL reported fourth-quarter 2014 net income of $461 million, an increase of 86 percent year-over-year, or $1.20 per diluted share, excluding $433 million of special items. Including special items, UAL reported fourth-quarter 2014 net income of $28 million, or $0.07 per diluted share.

UAL earned a 12.9 percent return on invested capital in 2014.

United’s consolidated passenger revenue per available seat mile (PRASM) increased 1.6 percent for full-year 2014 compared to full-year 2013.

Full-year 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent year-over-year on a consolidated capacity increase of 0.3 percent. Full-year 2014 CASM, including those items, decreased 1.6 percent year-over-year.

In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billion share buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.

Employees earned $235 million in profit sharing for full-year 2014, which will be distributed on Feb. 13.

UAL ended the year with $5.7 billion in unrestricted liquidity.

Fourth-Quarter Revenue and Capacity

For the fourth quarter of 2014, total revenue was $9.3 billion, a decrease of 0.2 percent year-over-year. Fourth-quarter consolidated passenger revenue increased 1.3 percent to $8.1 billion, compared to the same period in 2013. Ancillary revenue per passenger in the fourth quarter increased 9.7 percent year-over-year to more than $22 per passenger. Fourth-quarter cargo revenue grew 18.2 percent to $260 million driven by higher volumes year-over-year, as cargo traffic recovered from the prior year’s lower bookings. Other revenue in the fourth quarter decreased 14.3 percent year-over-year to $970 million mostly due to the company choosing to discontinue an agreement to sell fuel to a third party. The corresponding expense decline appears in third-party business expense.

Consolidated revenue passenger miles increased 0.1 percent and consolidated available seat miles increased 0.9 percent year-over-year for the fourth quarter, resulting in a fourth-quarter consolidated load factor of 81.7 percent.

Fourth-quarter 2014 consolidated PRASM increased 0.4 percent and consolidated yield increased 1.3 percent compared to the fourth quarter of 2013.

Fourth-Quarter Costs

Fourth-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, increased 1.2 percent compared to the fourth quarter of 2013. Fourth-quarter consolidated CASM including those items decreased 5.3 percent.

Fourth-quarter total operating expenses, excluding special charges, decreased $420 million, or 4.7 percent, year-over-year. Including special charges, total operating expenses decreased $406 million, or 4.5 percent, in the fourth quarter versus the same period in 2013.

Fourth-Quarter Liquidity and Cash Flow

UAL ended the fourth quarter with $5.7 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the fourth quarter, the company had gross capital expenditures of $1 billion, excluding fully reimbursable projects. The company made debt and capital lease principal payments of $534 million in the fourth quarter, including prepayment of $248 million of convertible debt that was convertible into approximately 4.3 million shares of United common stock.

As part of United’s $1 billion share buyback program, the company spent approximately $100 million in share repurchases in the fourth quarter. For the year, United returned a total of approximately $320 million to shareholders through share repurchases and open market transactions. In addition, for the year the company spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares.

For the 12 months ended Dec. 31, 2014, the company’s return on invested capital was 12.9 percent.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-924 ER N68836 (msn 60088) with Aviation Partners Boeing Split Scimitar Winglets departs from Los Angeles International Airport.

United Airlines aircraft slide show (historic liveries):

United Airlines aircraft slide show (current livery):

United Airlines to serve up a new premium-cabin dining experience on North America flights

United Airlines (Chicago) has issued this statement:

United Airlines will treat premium-cabin customers on flights within North America to a brand new dining experience beginning February 1, when the airline elevates everything from entrees to desserts and lighter snacks for United First and United Business customers.

Additionally, United will expand North America premium-cabin meal service to include flights of at least 800 miles – or as short as two hours and 20 minutes – increasing the number of flights on which customers may enjoy meals. The airline will also offer a greater variety of dining choices.

These changes come as United is making a multi-million-dollar investment in in-flight food service.

Premium-Cabin Dining Changes

Created by United’s team of chefs and inspired by cuisine in the airline’s hub cities and other popular North American destinations, United will introduce flavorful new entrees, including cage-free scrambled eggs prepared skillet style with pepper-jack cheese, sauteed pepper mix, sliced New Mexico sausage, potato gratin and fire-roasted pepper sauce; lobster macaroni and cheese with a baked crumb topping and side of broccoli rabe; and chicken and sausage jambalaya with white rice and green onions.

Other changes include:

For short flights that offer lighter refreshments, the addition of new breakfast breads in the morning and a rotation of 25 new premium snacks in the afternoon and evening;

On meal flights less than four hours, a variety of enhanced breakfast choices, such as French toast souffle or steel-cut oatmeal, both paired with fresh fruit and Greek yogurt, plus new dinner selections, including tandoori chicken with basmati rice and paneer, to replace the current premium sandwich options;

An expanded mid-continental meal service on flights of four hours to five hours and 19 minutes, offering customers who now get two entree options a choice of three, such as creole shrimp served with Carolina grits, and a dessert of sorbet with mint-leaf topping during lunch or gelato or ice cream for dinner;

New multi-course meal service on transcontinental and Hawaii flights, featuring heartier entrees, such as tamale-stuffed chicken wrapped in a corn husk and served with creamy corn sauce, roasted red and yellow tomatoes and yucca sticks, followed by sorbet during lunch or gelato or ice cream for dinner; and

Signature bake-on-board cookies in customer-chosen flavors, including triple-chocolate chunk, served for dessert on short- and medium-haul flights that offer meals, or as an afternoon or evening pre-arrival treat on transcontinental flights and flights that link Hawaii with Los Angeles, San Francisco, Denver and Houston.

United will also continue to offer premium-cabin customers Prosecco sparkling wine and – on lunch and dinner flights – the airline’s signature warmed nuts.

Photos: United Airlines.

United Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-3/Airlines-United-States3-QZ/United-Airlines

Boeing and Thai Airways International celebrate the 75th direct airplane delivery

Boeing (Chicago) and Thai Airways International Public Company Limited (Bangkok) yesterday (January 21) celebrated the Thai flag-carrier’s 75th direct delivery of a Boeing airplane. Marking the milestone delivery, Boeing and Thai collaborated to transport 1,000 wool blankets onboard Thai’s newly delivered 777-300 ER (Extended Range). The blankets, donated by Another Joy Foundation, will be distributed by the airline to people in need in Thailand during the colder winter months.

This latest humanitarian effort, the third between Boeing and Thai, is part of Boeing’s long-running Humanitarian Delivery Flights program.

Boeing’s Humanitarian Delivery Flights program, which began in 1992, has worked in partnership with nearly 50 carriers worldwide to facilitate more than 170 humanitarian flights. On previous delivery flights, Thai and Boeing have provided medical kits and school supplies.

Thai currently operates four 787 Dreamliners and has operated nearly every model of the 777. Thai Cargo was the first carrier in Southeast Asia to utilize the 777 Freighter. The airline has an additional two 777-300 ERs on order.

Photo: Boeing. Brand new Boeing 777-3D7 ER HS-TKX (msn 42113) departs from an overcast Paine Field near Everett yesterday. The new airplane was handed over to the carrier on January 21.

Thai aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Asia-3/Airlines-Asia3-QZ/Thai-Airways-International

Flybe flight BE 202 from Manchester to Inverness skids off the runway after landing

Flybe (Exeter) flight BE 202 from Manchester to Inverness landed at the Scottish airport at 10:14 am yesterday morning, January 20, before encountering ice on the runway and skidding off onto the nearby grass.

The aircraft involved was the pictured Bombardier DHC-8-402 (Q400) registered G-JEDW (msn 4093).

None of the 47 passengers and four crewmembers were injured by the incident and all were immediately transferred to the terminal building by bus.

Temperatures of -3° were recorded around the airport following the coldest night of the year in Scotland where temperatures dropped to -12°.

A Flybe spokesman said: “Flybe can confirm that, when taxiing at low speed at the end of the runway having landed safely at Inverness Airport this morning, the wheels of the Q400 aircraft skidded on the surface of the airfield causing it to slide onto the grass.

“The 47 passengers and four crew were unharmed and exited the aircraft by the stairs for bus transfer to the terminal where they collected their luggage as normal.

“The safety of its passengers and crew is the airline’s number one priority and Flybe regrets any inconvenience experienced as a result of this incident.”

Report by Assistant Editor Oliver Wilcock from Manchester.

Read more (with photos) from the Mirror: CLICK HERE

Flybe aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-2/Airlines-Europe-2/Flybe