JetBlue to introduce the new Airbus A321 tomorrow

JetBlue Airways (New York) tomorrow (December 19) will begin revenue operations of their new Airbus A321s. The first all-coach (JetBlue calls it “core”) A321s, outfitted with 190 seats, will debut on routes from New York JFK to Barbados, Fort Lauderdale/Hollywood and San Juan. By the launch of service, JetBlue have four A321s in service, the first of an order for 83.

Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. The pictured Airbus A321-231 with the temporary marks of D-AVZA was the first A321 and became N903JB on delivery on October 24. It was followed by N905JB on November 13 and N907JB on November 16. The new A321s are also introducing the new Prism tail design.

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Delta to add even more routes from Seattle/Tacoma

Delta Air Lines (Atlanta) will add new daily nonstop flights to Seattle-Tacoma International Airport from San Jose International Airport and Juneau International Airport as well as an additional flight from Ted Stevens Anchorage International Airport, all beginning on May 29, 2014. The new service will provide customers with convenient connections to the airline’s growing international network from Seattle/Tacoma.

Delta’s new and expanded Seattle/Tacoma service includes:

Four new daily nonstop flights from San Jose, California
One new daily summer seasonal flight from Juneau, Alaska – a new city to Delta’s network
One additional summer seasonal flight from Anchorage for a total of three daily nonstop flights

“The Pacific Northwest economy is one of the fastest-growing in the U.S., and a big part of why we’re adding domestic flights in support of our growing global gateway in Seattle,” said Mike Medeiros, Delta’s vice president – Seattle. “By next summer, we’ll offer more than 2,500 daily international seats as part of our 79 peakday departures to 25 destinations.”

Delta’s new service from San Jose will be operated by Delta Connection carrier SkyWest Airlines using 76-seat, two-class CRJ900s. The airline’s new Juneau service as well as the additional Anchorage summer seasonal flight will be operated with a Boeing 737-800. Each aircraft is equipped with First Class and Economy Comfort seating as well as onboard Wi-Fi.

The airline recently announced expanded Seattle/Tacoma service to Anchorage, Alaska, Fairbanks, Alaska, Las Vegas, Los Angeles, Portland, Oregon, San Diego, San Francisco and Vancouver to support its increasing international network that currently operates nonstop flights to Amsterdam, Beijing, Paris, Shanghai-Pudong and Tokyo. The airline will also operate new nonstop international service in 2014 to London-Heathrow in March as well as Hong Kong and Seoul in June, pending government approval.

Delta currently operates 35 peak-day departures to 15 destinations from Seattle/Tacoma.

Besides adding QB Russell Wilson, what will be the competitive response from “partner” Alaska Airlines?

Copyright Photo: Bruce Drum/AirlinersGallery.com. Delta’s Boeing 737-832 N3757D (msn 30813) taxies to the gate at SeaTac.

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Alaska Airlines welcomes Seattle Seahawks QB Russell Wilson to the team

Alaska Airlines (Seattle/Tacoma) has a new quarterback onboard — Seattle Seahawks star Russell Wilson. Seattle’s hometown airline and Wilson are teaming up in a partnership to engage with our customers and support youths in the community.

As part of the exclusive multi-year partnership, Wilson will appear at events, take part in marketing activities for Alaska Airlines, and work with the carrier to support youth and education programs. Among them is the Russell Wilson Passing Academy, which provides inner-city and underprivileged youths an opportunity to attend football camp for a once-in-a-lifetime experience.

Another activity is Seattle Children’s Hospital, where Wilson regularly visits young fans receiving care. In honor of Wilson’s commitment to connecting with these children in such a meaningful way, Alaska Airlines will donate 100,000 miles to Children’s Hospital for each touchdown pass Wilson throws or touchdown he scores through the rest of this season.

Wilson and Alaska Airlines enjoy a relationship that began last spring after his rookie year in the National Football League, when he surprised customers at Seattle-Tacoma International Airport by welcoming them at the carrier’s lobby check-in and gate areas. Wilson and Alaska then teamed up to inspire youths to finish school and accomplish their goals. An event on a sunny day in July — dubbed “Pledge It. Prove It. Take Flight.” — attracted more than 600 students from 21 high schools in Western Washington, who heard from Wilson and employees of Alaska Airlines and its regional carrier, Horizon Air, about careers in aviation.

Top Copyright Photo: Alaska Airlines.

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Danube Wings is unable to resume operations, lays off all employees

Danube Wings (VIP Wings dab) (Bratislava) was forced to suspended all flight operations from both Bratislava and Kosice on November 20. Since then the airline has now ceased all business operations and laid off all of its employees.

Operations commenced in August 2008.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Danube Wings ATR 727-202 OM-VRA (msn 373) is pictured in operation at Palma de Mallorca.

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Southwest Airlines announces new routes

Southwest Airlines (Dallas) has announced its schedule through June 2014. In the wake of the recent slot reallocation concerning New York’s LaGuardia Airport, Southwest is increasing service between LaGuardia and Nashville, Houston Hobby, Chicago Midway and Akron-Canton, Ohio. The new service begins on May 11, 2014.

Southwest Airlines also announced new nonstop service between San Diego and Orlando; New Orleans; Portland, Oregon; and Seattle/Tacoma. The new flights come as Southwest gets ready to celebrate its 32nd anniversary of serving San Diego’s Lindbergh Field.

The airline also is making waves in Portland, Oregon, by offering new nonstop destinations to Customers in the northwest. That includes the two daily nonstop flights to San Diego, as well as daily service to Baltimore/Washington, Chicago Midway, and Houston Hobby.

As Southwest moves toward its final phase of integrating AirTran Airways, new nonstop service at Hartsfield-Jackson Atlanta International Airport includes service to Detroit, Minneapolis/St. Paul, Milwaukee, and Pittsburgh.

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JetBlue Airways and South African Airways begin code-sharing

JetBlue Airways (New York) and South African Airways (SAA) (Johannesburg) have launched their bilateral code-share agreement.

JetBlue is now placing its “B6” code on SAA-operated flights between the U.S. and Johannesburg, South Africa, as well as on connecting flights to select destinations beyond Johannesburg including Cape Town, Durban, East London and Port Elizabeth, South Africa.

SAA flies each day between both New York’s John F. Kennedy International Airport (JFK) and Washington’s Dulles International Airport (IAD) and Johannesburg’s O.R. Tambo International Airport

Via its Johannesburg hub, SAA links the world to most cities and destinations across southern Africa and the Indian Ocean islands, including South Africa, Angola, Botswana, Kenya, Mauritius, Mozambique, Namibia, Tanzania, and Zambia.

Beginning in 2014, JetBlue will debut Mint, the carrier’s new premium offering, featuring the longest lie-flat bed in domestic business class and the only private suites on the New York-Los Angeles and New York-San Francisco routes.

At JFK Airport, JetBlue operates from its Terminal 5, while SAA operates from the adjacent Terminal 4, allowing for fast and easy connections between flights.

At Washington Dulles, both JetBlue and SAA are co-located in Concourse B.

Top Copyright Photo: James Helbock/AirlinersGallery.com. Standing out in the red FDNY special livery, Airbus A320-232 N615JB (msn 2461) arrives at Los Angeles International Airport.

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Bottom Copyright Photo: Brian McDonough/AirlinersGallery.com. South African Airways’ Airbus A340-313X ZS-SXE (msn 646) leaves the runway at Washington Dulles International Airport.

Delta’s flight 385 slips off the taxiway at Madison, Wisconsin

Delta Air Lines (Atlanta) flight DL 385 from the Minneapolis/St. Paul hub to Madison, Wisconsin with a Boeing 737-800 (N372DA) slipped off the taxiway after missing a turn after exiting the runway. The aircraft’s nose gear went into the snow covered ground at Madison yesterday afternoon (December 16). There were no injuries to the 60 passengers and six crew members on board. There was a snowstorm at the airport during the incident.

Read the full story from the Wisconsin State Journal: CLICK HERE

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Boeing to build a new training center in Russia, will buy back $10 billion of its stock

Boeing (Chicago) has announced it will expand its flight and maintenance training capabilities in Russia with a new, state-of-the-art training campus.

The new full-service training facility— set to open in 2015—will be located in the Skolkovo Innovation Center in Moscow. Boeing will work in cooperation with Industrial Investors Group and their subsidiary Transas on the project.

Initial capability will include flight, maintenance and specialty training. Local maintenance training will be available across the spectrum of Boeing aircraft currently in operation, and flight training capability will include locally based instructors.

The new facility will open with four simulator bays, featuring three Next-Generation 737 full-flight simulators and one 777 full-flight simulator. Two of the simulators will be built by Transas. The facility is designed to allow for expansion to accommodate additional training capacity as required by customers.

Groundbreaking on the new training and research campus is scheduled for spring 2014, with training beginning in mid-2015.

The Boeing 2013 Pilot & Technician Outlook estimates that the Commonwealth of Independent States, including Russia, will require 15,200 new commercial airline pilots and 18,000 new technicians over the next two decades, supporting 1,530 new commercial airplanes by 2032. The new training campus in Russia is a significant investment in the region’s aviation safety, and will reduce travel times for airline crews and the costs of sending students for training.

Boeing Flight Services continually examines the global outlook for aviation training, and works to ensure training is available where it’s needed—near customers. In November, ground was broken on a new training facility in Korea. In August, Miami became the hub for pro forma flight training in the Americas— including 787 training —after the placement of additional flight simulators from Seattle. Three new simulators were also announced for the global training network in 2013: a third 787 full-flight simulator in London, and additional 777 and Next-Generation 737 simulators in Singapore.

In other news, Boeing Chairman, President and Chief Executive Jim McNerney announced Boeing’s board of directors authorized an additional $10 billion for the company’s share repurchase plan and declared that the company’s regular quarterly dividend will increase by approximately 50 percent to 73 cents per share.

The $10 billion repurchase authorization approved today is in addition to the approximately $0.8 billion remaining from the 2007 stock repurchase authorization. Repurchase activity for 2013 is complete and is expected to resume in January 2014.

The timing and volume of repurchases are at the discretion of Boeing management, however it is currently expected that the share repurchases will be made over the next two to three years. Repurchases may be made on the open market or in privately negotiated transactions.

The dividend declared today is payable March 7, 2014, to shareholders of record as of February 14, 2014.

AerCap to buy ILFC from AIG

AerCap Holdings N.V. (The Netherlands) has announced that it has entered into a definitive agreement with American International Group, Inc. (AIG) under which AerCap will acquire 100% of the common stock of International Lease Finance Corporation (ILFC), a wholly-owned subsidiary of AIG. Under the terms of the agreement, AIG will receive $3.0 billion in cash and 97,560,976 AerCap shares.

The transaction is expected to close in the second quarter of 2014. The cash portion of the consideration is expected to be funded through a combination of new debt financing and cash of the combined company.

The combined company will retain the name AerCap, and ILFC will become a wholly-owned subsidiary of AerCap. In connection with the transaction, AIG will be entitled to nominate two directors for election to the Board of Directors of AerCap.

Based on the closing stock price of AerCap’s shares on Friday, December 13, 2013, the total consideration has a value of approximately $26 billion including the assumption of the outstanding ILFC net debt of $21 billion. Upon closing of the transaction, AIG will own approximately 46% of the combined company, while the existing AerCap shareholders will own approximately 54% of the combined company. The AIG shares will be subject to a lock-up period which will expire in stages over a 9 to 15 month period, post closing of the transaction. In connection with the acquisition, AIG has entered into agreements with AerCap regarding voting restrictions, standstill provisions and certain registration rights.

As part of the transaction, AIG will provide AerCap with a committed five-year $1.0 billion unsecured revolving credit facility. In connection with the transaction, AerCap and AIG will make an election under Section 338(h)(10) of the Internal Revenue Code that will enable AerCap to step up the tax basis of ILFC’s aircraft and other assets to their fair market value.

AerCap’s CEO Aengus Kelly commented: “AerCap’s acquisition of ILFC will create the leading global franchise in the aircraft leasing industry. This transaction presents a unique strategic opportunity to bring together the outstanding and experienced personnel from both companies and two attractive portfolios of modern aircraft on lease to a highly diversified customer base. Further, we believe AerCap will now have the most attractive order book in the industry. With these combined resources, along with a strong liquidity profile, we will drive high levels of stable long term profitability and cash flows for the benefit of all our stakeholders.”

The acquisition will provide the opportunity to leverage the operating capabilities of both the AerCap and ILFC platforms to drive enhanced shareholder value. The combined portfolio will be concentrated from the outset in modern, fuel efficient aircraft, with over 85% of the fleet by value consisting of A320, A330, Boeing 737NG and Boeing 777 family aircraft. Further, AerCap will benefit from over $25 billion of future aircraft deliveries presently in the combined order book. This represents substantial embedded future growth with attractive aircraft types, and favorable pricing and delivery dates.

Robert H. Benmosche, President and CEO of AIG, said: “ILFC is a valuable business, and AIG has always taken great pride in ILFC’s reputation for innovation, its pioneering role in aircraft leasing, its industry-leading team of employees, and its consistent and successful market leadership. The combination of AerCap’s young fleet of in-demand aircraft and proven portfolio management capabilities with ILFC’s attractive order book and broad marketing reach will continue to lead the industry.”

Henri Courpron, Chief Executive Officer of ILFC, added: “I am very proud of the hard work and leadership demonstrated by the ILFC team over the past four years. It is because of them that we have the best-in-class order book and solid balance sheet, and our company is now poised for this promising combination with AerCap. Becoming the number one lessor in the world is a just reward for all of this work.”

The transaction is subject to approval by AerCap shareholders, receipt of necessary regulatory approvals and satisfaction of other customary closing conditions. Waha Capital, AerCap’s largest shareholder with a current stake of 26%, has agreed to vote in favor of the transaction.

AerCap is one of the world’s leading aircraft leasing companies. AerCap has a portfolio of 373 aircraft owned, managed and under purchase commitments, which represents one of the youngest fleets in the industry. The company is listed on the New York Stock Exchange (AER) and has its headquarters in the Netherlands with offices in Ireland, the United States, China, Singapore and the United Arab Emirates.

AerCap Current Fleet:

International Lease Finance Corporation (ILFC) is a global market leader in the leasing and remarketing of commercial aircraft. With nearly 1,000 owned and managed aircraft and commitments to purchase approximately 330 new high-demand, fuel-efficient aircraft, ILFC is the world’s largest independent aircraft lessor. ILFC has approximately 200 customers in more than 80 countries and provides part-out and engine leasing services through its subsidiary, AeroTurbine. ILFC operates from offices in Los Angeles, Amsterdam, Beijing, Dublin, Miami, Seattle, and Singapore.

Atlas Air to operate a Boeing 747-800F for BST Logistics in Hong Kong

Atlas Air Worldwide Holdings, Inc. (New York) has announced that its Atlas Air, Inc. (New York-JFK) unit has entered into a contract with BST Logistics (Hong Kong) Company Limited (BST Logistics), a business partner of Navitrans International Freight Forwarding Co., Ltd., to provide Boeing 747-8 freighter service.

The contract is for one aircraft under an ACMI (Aircraft, Crew, Maintenance and Insurance) agreement, with service expected to begin in February 2014 and operating in key global routes connecting the U.S., Europe and Asia.

BST Logistics provides dedicated airfreight services on a global basis and serves some of the largest shippers in the world.

Copyright Photo: Nick Dean/AirlinersGallery.com. Atlas Air’s Boeing 747-87UF N854GT (msn 37566) departs from Paine Field near Everett.

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