American Airlines (Dallas/Fort Worth) was reportedly due to take delivery of its first Boeing 787-8 Dreamliner in November, then it slipped to December. The original delivery date was September 2012 before all of the delays occurred to the other 787s in front of this aircraft. The first 787 is now due to be delivered in the first quarter of this year. The pictured 787-8 N800AN (msn 40618) emerged from the paint shop on October 30, 2014. Boeing and American are currently working on the details for the delivery and entry of the new type into revenue service. However the new type has completed an important milestone in the delivery process.
As we previously reported, the pictured N800AN successfully conducted its first flight on January 6 from Paine Field via Moses Lake. Since then, the 787 has completed another test flight.
American has 42 Boeing 787s on order including 16 787-8s and 26 787-9s, with 58 options. The airline is scheduled to take delivery of two 787s this year, 11 in 2015, 13 in 2016 and nine in 2017.
American will replace some of its older Boeing 767-300s with the new 787s.
Copyright Photo: Royal S. King/AirlinersGallery.com. A splendid shot in sunshine of N800AN at Paine Field near Everett, Washington on January 19 performing another test flight.
American Airlines aircraft slide show (current livery):
Business Air (Bangkok-Suvarnabhumi) was grounded by theย DCA of Thailand. The DCA ordered Business Air to suspend all operations on January 16, 2015, leaving more than 1,000 passengers stranded. The company was unable to pay its unpaid bills.
The company started operations in December 2009.
Read the full full report from the Bangkok Post: CLICK HERE
Update: Later in January 2015 Business Air was permitted by DGA to resume operations.
Copyright Photo: Ken Petersen/AirlinersGallery.com. Boeing 767-383 ER HS-BID (msn 24848) arrives back at the Bangkok (Suvarnabhumi) base.
Alitalia (3rd) (Rome) today issued new strategy with its new partner Etihad Airways (Abu Dhabi). The new strategy will also include a new brand and livery for 2015.
The company issued this statement:
The strategy for the new Alitalia was unveiled today, with an unequivocal commitment by the new executive team and strategic investors to reinvent the airline.
Alitalia will introduce new routes, new product and service standards, a new cost management strategy and new branding, as the foundations to build a premium global airline representing the best of Italy.
The new Alitalia commenced operations on January 1, 2015, following the completion of equity investments by Etihad Airways and Alitaliaโs existing shareholders. The new companyโs Board meeting yesterday ratified the business strategy, which was outlined today by Luca di Montezemolo, Chairman of Alitalia, Silvano Cassano, Chief Executive Officer of Alitalia, and James Hogan, President and Chief Executive Officer of Etihad Aviation Group and Vice Chairman of Alitalia.
Luca di Montezemolo said: โThe energies, passion and expertise I have experienced at Alitalia in recent weeks do not leave any doubt that the airline weโre unveiling today will become once again a premium Italian airline recognised worldwide. This is why I believe the people in Alitalia are a pillar of the history weโre about to write.
“Our priority is to put the customer at the centre of everything we do. And to do that, we will change many things, starting with the way we work. We need to work as one united team to achieve this great common goal.
โThe revitalized Alitalia we envision and have started building, will be an asset to this country, and a driver to support the growth of our tourism and our business.โ
James Hogan said Alitaliaโs future will rely on major change throughout the organization.
โIn a market still beset by the continuing Eurozone crisis, anything other than rapid, decisive change is simply not an option.
โThis is the right strategy, with the right management team to lead it.
โBut there should be no doubts at all: we have made a commercial investment that must deliver a commercial return.
โWeโve invested in the new Alitalia because we believe it can flourish again. It will only succeed if there is 100 per cent support from everyone. The coming months and next few years will not be easy, but if everyone pulls together as one team, Alitalia can grow again.โ
Mr Hogan said that Alitaliaโs major investors had set a clear deadline for the airline to deliver profitability by 2017.
Outlining the airlineโs new strategy, Silvano Cassano said: โThe new Alitalia strategy is serious, it is exciting and it is commercial. It is a strategy for success โ if everybody delivers.
โIt is serious because it has been developed over months by an executive team and a set of partners that share extensive and in-depth industry expertise.
โIt is exciting because of the vision and ambition that we have for the brand and for the business. This is the chance to create a new Alitalia, one which Italy can truly feel proud of.
โAnd it is commercial because that is the only way this can work. Every single employee at Alitalia has to get into a commercial mindset, one in which the basis of every decision is: Does this add value to our customer? Does it add value to our company? And does it help us to deliver a financial return?
โWe need to create a performance-based, customer-focused culture which results in a sustainably profitable airline, one which can grow over the long term.
โThe investment we have received from our shareholders gives us the opportunity to do that.โ
Mr Cassano added: โA successful Alitalia means jobs, it means trade and it means tourism. It means a major impact on the Italian economy.โ
The key elements of the new business strategy include:
Network
A new three-hub strategy in Italy. Milan Malpensa will increase long-haul services, while Milan Linate will increase connectivity with partner airline hubs. Rome Fiumicino will grow long-haul flying and continue to expand short and medium haul flying to maintain relevance to the Italian market.
Schedules across the network will be optimized to allow better connectivity, as well as increased codesharing with existing and new partners.
New routes from Rome include Berlin, Dusseldorf, San Francisco, Mexico City, Santiago (Chile), Beijing and Seoul, with increased flights to New York, Chicago, Rio de Janeiro and Abu Dhabi.
Alitalia will also add 13 weekly flights from Milan Malpensa, with daily services to Abu Dhabi, four flights a week to Shanghai, and additional flights to Tokyo.
There will also be increased connectivity with Etihad Airwaysโ hub in Abu Dhabi, with daily services from Venice, Milan, Bologna and Catania, as well as additional flights from Rome, all allowing onward connections to the Middle East, Africa, the Indian subcontinent, Southeast Asia, China and Australia.
Venice will be the only Italian airport, in addition to Rome Fiumicino and Milan Malpensa, from which Alitalia will operate services to Abu Dhabi with long-haul aircraft.
Cooperation
While exploring further opportunities to deepen the relationships with Skyteam members and in particular Air France/KLM and Delta, there will be a major new partnership with Airberlin and Niki, as well as increased connectivity with Etihad Airways. There are also plans to work more deeply with Air Serbia and Etihad Regional. These partnerships will increase customer choice across many markets.
Fleet
Alitalia and Etihad Airways and its partners are exploring opportunities to improve jointly fleet efficiency. For example, Alitalia is in the process of relocating 14 Airbus A320s to Airberlin, and looking into options with Etihad Airways to acquire additional wide-body aircraft for Alitalia. Alitalia will also have opportunities to receive aircraft from Etihad Airwaysโ existing fleet orderbook.
Guest Services
A new customer-first culture, with new product and service standards across the airline. A new Customer Excellence Training Academy will deliver skills to all customer-facing staff, while customers will experience traditional Italian hospitality, new food service options, new-look lounges in Rome, Milan Malpensa and Milan Linate.
Brand
Alitalia will launch a new brand and visual identity, covering aircraft, uniforms and all other customer touch-points. While the name will remain unchanged, the new branding will seek to capture and embody the essence of Italy.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. The updated version (in 2006) of the basic 1969 livery will soon be history as Alitalia replaces it with a new Italian theme and look. Alitalia is also going to receive new aircraft types for its long-range routes from partner Etihad Airways. Boeing 777-243 ER EI-ISD (msn 32860) arrives in Los Angeles.
Video:ย Join Luca di Montezemolo, Chairman of Alitalia, Silvano Cassano, Chief Executive Officer of Alitalia, and James Hogan, President and Chief Executive Officer of Etihad Aviation Group and Vice Chairman of Alitalia, as they outlining the strategy for a new Alitalia.
Gotham Air (New York) is a new crowd sourced on-demand helicopter service for the New York area. The new service will be different than previous helicopter airlines of the past. Prospective passengers with use the Gotham Air app to find a flight and the company will match you with other passengers to fill the helicopter. Gotham Air is using Helicopter Flight Services to operate the helicopters. Gotham Air’s role is to find and combine the passengers to make the flights profitable. The service will operate from JFK International Airport, Newark International Airport and Manhattan. The new service today issued this statement:
Time is money. Imagine if you could travel from Manhattan to JFK or Newark Liberty Airports in six minutes instead of two hours of stop and go traffic. Today marks the launch of Gotham Air, a premiere daily crowd sourced helicopter service that will revolutionize how you commute. To celebrate the launch, first time riders can book a $99 flat rate flight by simply selecting a departure from one of three Manhattan heliports.
Gotham Air features include:
Flights available seven days a week
First time users pay $99 to JFK or EWR; after the first ride, a one way fare is $199 – $219 dependent on departure time
Complimentary hors d’oeuvres provided by world renowned Chef Thomas Keller’s Bouchon Bakery
Inclement weather guarantee backed by Tesla; Gotham Air will pick up guests at their home or office in Manhattan and whisk them to the airport in a sleek Tesla S on rare occasions when the winds are too high or the cloud cover is too low
Gotham Air has formed an alliance with Helicopter Flight Services, one of the largest, most trusted names in luxury aviation for the past thirty years. Gotham Air’s digital service platform is integrated with Helicopter Flight Services’ fleet of state of the art helicopters including seven Bell 407s, one Sikorsky S76 C+ and one Bell 427.
United Airlines (Chicago) added more flights for football fans on top of regularly scheduled service to Phoenix from its hubs in Chicago (O’Hare), Denver, Houston (Bush Intercontinental), Los Angeles, Newark and San Francisco. The airline also added special new nonstop service, operating from January 29 to February 2, from Boston and Seattle/Tacoma to Phoenix for the Super Bowl. Several of the flights will be operated with Boeing 767 aircraft to accommodate the extra demand.
Copyright Photo: Michael B. Ing/AirlinersGallery.com.ย United Airlines Boeing 767-322 ER N675UA (msn 29243) completes its final approach at Los Angeles International Airport.
United Airlines aircraft slide show (current livery only):ย
Southwest Airlines (Dallas)ย is adding more nonstop flights and connections between Seattle/Tacoma and Phoenix Sky Harbor International Airport and Boston and Manchester and Phoenix Sky Harbor International Airport for the Super Bowl. The additional flights will only be offered between January 29 and February 2 to handle the anticipated increase in travelers.
Copyright Photo: Mark Durbin/AirlinersGallery.com.ย Southwest Airlines’ Boeing 737-3H4 N654SW (msn 28399) taxies to the runway at San Francisco International Airport.
Southwest Airlines aircraft slide show (new livery only):
Delta Air Lines (Atlanta) today reported financial results for the fourth quarter. Key points include:
Delta’s pre-tax income for the December 2014 quarter was $1.0 billion, excluding special items1, an increase of $474 million over the December 2013 quarter on a similar basis. Delta’s net income for the December 2014 quarter was $649 million, or $0.78 per diluted share, and its operating margin was 12.6 percent, excluding special items.
For the full year 2014, Delta’s pre-tax income, excluding special items, was $4.5 billion, a $1.9 billion increase over 2013. Delta’s net income for the year was $2.8 billion with an operating margin of 13.1 percent, excluding special items.
On a GAAP basis including special items, Delta’s December quarter pre-tax loss was $1.1 billion, operating margin was -8.6 percent and net loss was $712 million, or $0.86 per share. On a GAAP basis including special items, Delta’s 2014 pre-tax income was $1.1 billion, operating margin was 5.5 percent and net income was $659 million.
2014 results include $1.1 billion in profit sharing expense, including $262 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s financial goals.
The company’s strong cash generation allowed it to accelerate its capital deployment plans by reducing its adjusted net debt2 to $7.3 billion, contributing an incremental $250 million above required funding to its defined benefit pension plans, and returning $1.35 billion to shareholders through a combination of $251 million of dividends and $1.1 billion of share repurchases in 2014.
“Our 2014 performance โ an industry-leading operation, superior customer service, and a 70 percent increase in profits โ shows that Delta is focused on delivering growing value for its employees, customers and investors,” said Richard Anderson, Delta’s chief executive officer. “As we begin 2015, we have a significant opportunity from lower fuel prices, which will drive more than $2 billion in fuel savings over 2014. Through our capacity discipline, pricing our product to demand, and the fuel savings, we expect to drive double-digit earnings growth, along with increased free cash flow and a higher return on invested capital in the upcoming year.”
Special Items
Delta recorded a $1.4 billion special items charge, net of taxes, in the December 2014 quarter, including:
a $1.2 billion charge for mark-to-market adjustments on fuel hedges settling in future periods;
a $75 million charge for mark-to-market adjustments on hedges owned by Virgin Atlantic;
a $74 million charge for fleet, facilities, and other items, associated with Delta’s domestic fleet restructuring initiative as well as the write-down of certain facilities in Concourse C of Detroit Airport; and
a $29 million gain related to an insurance settlement.
Delta recorded a net $7.9 billion special items gain in the December 2013 quarter, including:
an $8.0 billion non-cash gain associated with the reversal of Delta’s tax valuation allowance;
a $92 million mark-to-market gain on fuel hedges; and
a $160 million charge for facilities, fleet and other, including charges associated with Delta’s domestic fleet restructuring.
Financial comment from James Chen, Chief Technical Strategist at www.cityindex.com.sg
“Delta Airlines Inc. (DAL) announced fourth quarter earnings on Tuesday before the market open. The airline reported better-than-expected non-GAAP earnings of $0.78 per share, helped by falling fuel prices. This beat analysts’ consensus earnings estimate of $0.77.
Total operating revenue reached $9.65 billion, slightly topping the $9.58 consensus estimate.
DAL’s stock price rose well above $47.00 in pre-market trading after having closed on Friday at 45.84.
Overall, DAL continues to trade within a long-term bullish trend. 2014 was a dramatically bullish year for the stock, as price rose by 84% from its 2014 opening price of $27.26 up to the record high of $50.16 that was reached on the very last day of 2014. This was despite a major price correction that occurred throughout September and the first half of October.
The new year has thus far shown somewhat of a different picture. From the very beginning of 2015, DAL has declined consistently from its 2014 high in a substantial pullback move.
Prior to Tuesday’s earnings report, price action had been approaching key support around the $44.00 price level, slightly under the 50-day moving average. The positive earnings report, however, has prompted a significant rebound from that level, with a clear upside resistance target around the $50.00 resistance area once again. With a continued bullish bias, especially after Tuesday’s earnings beat, the uptrend for DAL should be poised to continue its march up towards its $55.00 price objective.”
SAS Group (Scandinavian Airlines-SAS) (Stockholm) at its annual meeting discussed its financial results for its fiscal year 2013-2014 and also issued its annual report. The group fell back into a net loss of 719 million SEK ($88.4 million) for the year.
The group is coming under continued pressure from lower cost carriers in its markets (especially from Norwegian Air Shuttle) and also from the major European carriers, such as British Airways-Iberia, Lufthansa and Air France-KLM, shifting its European operations to its lower cost subsidiaries such as Vueling Airlines, Germanwings, Transavia Airlines and Hop!
SAS Group’s share of the Scandinavian market:
The group summarized its fiscal year:
“The results for the 2013/2014 fiscal year reflect a year characterized by substantial overcapacity and pressure on yield and unit revenue, and in which market conditions stabilized slightly toward the end of the year.”
The group also issued this outlook for 2015:
“SAS is continuing the intensive efforts to strengthen competitiveness. The potential exists for SAS to post a positive EBT before tax and nonrecurring items in the 2014/2015 fiscal year. This is provided that the economy does not weaken, that the trend continues in terms of reduced capacity and lower jet fuel prices, is maintained, that exchange rates are not subject to further deterioration and that no unexpected events occur.”
Fleet streamling:
In the 2013/2014 fiscal year, SAS phased in one long-haul aircraft and five medium-haul aircraft with modern cabins, in parallel with phasing out the last two Boeing 737 Classics. SAS also returned 11 MD-80s and seven Boeing 737 Classics that were taken out of service in the 2013 calendar year. With the phasing out of the MD-80 fleet and Boeing 737 Classics, SAS achieved an in-service aircraft fleet comprising only Next Generation aircraft in 2013/2014. SAS now has only one type of medium-haul aircraft per base, which provides a more stable and more efficient operational and technical plat- form. In addition, SAS plans to further streamline regional aircraft operations by phasing out Boeing 717s in 2015. SAS intends to transfer the CRJ900s to Cimber.
In addition, SAS has placed orders for four Airbus A330Es and eight Airbus A350s with delivery from 2015 to 2021, as well as 30 Airbus A320neo with delivery from 2016 to 2019. The first long-haul aircraft are expected to be in-service in autumn 2015. The introduction of long and medium-haul aircraft means SAS will be able to offer fre- quent travelers a world-class customer experience in parallel with lowering fuel and maintenance costs.
Copyright Photo: SPA/AirlinersGallery.com. The SAS Group still operates both the Airbus A320 and Boeing 737 Next-Generation family of aircraft in a very mixed short haul fleet. With the new A320neo aircraft being added the Boeing 737 fleet will be gradually reduced. Airbus A320-232 OY-KAP (msn 3086) arrives in London (Heathrow).
Silver Airways (Fort Lauderdale/Hollywood and Gainesville)ย is continuing to expand its Florida flying by introducing service fromย its 12th Sunshine State airport: Northwest Florida Beachesย International Airport (ECP) in Panama City, Florida. On March 19, 2015,ย the airline is starting nonstop service from Panama City to bothย Orlando and Tampa. The two new routes are not currently being servicedย from Panama City.
Starting March 19, 2015, Silver will operate two daily nonstop flightsย between Panama City and Orlando, as well as daily nonstop serviceย between Panama City and Tampa.
Starting March 19, 2015, Silverย Airways is also launching nonstop service between Jacksonville Internationalย Airport (JAX) and Pensacola International Airport (PNS).ย The flights will operate on weekdays Monday through Friday withย continuing service to/from Fort Lauderdale/Hollywood.
In other news, Silver Airways is also extending its routes from Tampa and Orlando to Charleston, South Carolina starting on March 19.
Copyright Photo: Tony Storck/AirlinersGallery.com.ย Silver Airways SAAB 340B N418XJ (msn 418) taxies to the runway at Fort Lauderdale-Hollywood International Airport.
Alaska Airlines is giving its Mileage Plan members a chance to fly from Seattle/Tacoma to Phoenix on a special charter to cheer on its Chief Football Officer, Russell Wilson, when his team plays in the big game on February 1. Alaska is launching “Russell Wilson’s Fan Flight II โ For Strong Against Cancer,” a four-day sweepstakes on Alaska Airlines’ Facebook page.
Above Photo: Alaska Airlines. Alaska has also changed the on-board mood lighting to the team colors.
Fifty-six prize winners will receive two roundtrip tickets for an โinflight tailgate party’ from Seattle to Phoenix on its “Go Russell 737-900ER” aircraft (above and below). Winners will also receive two nights of hotel accommodations, admission to an exclusive game day party and transportation to and from Phoenix Sky Harbor International Airport and their hotel.
The sweepstakes is open to Alaska Airlines Mileage Plan members who are residents of Washington, Oregon and Alaska.
Sweepstakes winners will be notified by phone and email beginning on Friday, January 23. To enter and review complete sweepstakes rules, visit www.facebook.com/AlaskaAirlines at 8 a.m. PT.
“We’re thrilled to have a second opportunity to fly Russell’s fans to the big game. We invite our loyal Mileage Plan members to join us in cheering on Russell and his team as they pursue their second championship win,” said Joe Sprague, senior vice president of communications and external relations for Alaska Airlines. “By entering this sweepstakes, Mileage Plan members are also helping to raise funds to help defeat childhood cancer, a cause that’s a priority for both Alaska and our Chief Football Officer.”
Above Photo: Alaska Airlines.
Russell Wilson’s Fan Flight for Strong Against Cancer
For every sweepstakes entry, Alaska Airlines will make a $1 donation to Strong Against Cancer, up to $50,000. Strong Against Cancer is a multi-year initiative dedicated to ending childhood cancer. Funds raised go directly to breakthrough pediatric cancer immunotherapy research underway at the Ben Towne Center for Childhood Cancer Research. In just one of the Center’s clinical trials for patients who have relapsed with acute lymphoblastic leukemia (ALL), this breakthrough treatment has had a stunning 85 percent success rate โ 11 of 13 patients’ cancer went into remission. Alaska joined Wilson in supporting Strong Against Cancer initially pledging $100,000 and is donating an additional $3,000 for every touchdown scored by Wilson and his offense in the playoff games and the championship game.
Alaska Adds Extra Flights Between Seattle and Phoenix
To help football fans trying to attend the February 1 championship game, Alaska has added two roundtrip flights between Seattle/Tacoma and Phoenix.
Summary of extra flights:
Top Copyright Photo: Mark Durbin/AirlinersGallery.com. Alaska Airlines has embraced its relationship with the Seattle Seahawks quarterback with special appearances and this special logo jet. Boeing 737-990 ER N453AS (msn 36354) carries unique “Go Russell!” markings. The markings have now been modified (below). The wingtip also includes Russell’s jersey number. (Alaska Airlines):
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