Volaris to start a new route linking Guadalajara and San Antonio on December 14

Volaris (Mexico City) announced the launch of new international service between the cities of Guadalajara and San Antonio, Texas. Flights will start on December 14.

San Antonio becomes the 27th destination operated by Volaris from Guadalajara and the 12th city to be serviced in the U.S., strengthening the carrier’s commitment to air connectivity and promoting binational cultural, economic, and commercial exchange. In addition, the new service marks Volaris’ incursion into the Texas market, extending its reach within the US.

The new service is part of Volaris’ new “Volaris always with you and your budget” (Volaris Siempre Contigo y tu Bolsillo) initiative, which provides travelers with the lowest available fares in the market and includes 25 kg of checked-in luggage. Flights are available for booking at “fares that make you travel”, with advance purchase options, as well as the innovative “Tu decides” approach, whereby customers purchase optional products and services they need for their travel, customizing every trip to their needs.

Volaris CEO, Enrique Beltranena, addressed the importance of the market segment targeted by the new flight. “The segment of travelers visiting friends and family between the US and Mexico is the largest of its kind in the world, it is essential to satisfy the demand for this much needed service on both sides of the border, offering flights at outstanding fares and with high services standards.”

Beltranena said that for this reason, the Guadalajara – San Antonio service is of utmost interest to the Guadalajara market, given that Volaris is the only carrier servicing this route. “We seek to consolidate our presence in Guadalajara by extending our destination offering from this city, so our customers no longer have to consider ground transportation options to travel to cities such as San Antonio. Volaris’ fares will make them travel,” he said.

Currently, Volaris is the leading airline in Guadalajara with over 40 daily departures. According to the 2011 U.S. Census Bureau, San Antonio, Texas, is the seventh most populated city in the United States with 2.1 million inhabitants, of which 55% are of Mexican origin.

Customers interested in booking travel for the new service, may do so on the following schedule:

Guadalajara, Jalisco – San Antonio, Texas
(As of December 14) – Tuesdays and Saturdays

Departing Guadalajara at 11:40 hrs., arriving San Antonio at 13:30 hrs
Departing San Antonio at 14:45 hrs., arriving Guadalajara at 16:45 hrs

On the financial side, the company issued this statement:

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (“Volaris” or the “Company”), (NYSE: VLRS, BMV: VOLAR), an ultra-low-cost airline based in Mexico, today announced its financial results for the third quarter of 2013. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). Unless otherwise stated, all comparisons with prior periods refer to the third quarter of 2012.

Third Quarter 2013 Highlights

Total operating revenue increased 11.1% year over year to a record Ps.3,722 million.
Adjusted EBITDAR was Ps.1,016 million, an increase of 15.5% year over year. Adjusted EBITDAR margin reached 27.3%, the highest quarterly EBITDAR margin achieved by the Company in the last three years.
Operating expenses per available seat mile (CASM) decreased to Ps.113.9 cents (US$8.8 cents) a 4.7% decrease year over year. CASM excluding fuel, decreased 2.9% in the same period.
Load factor increased 3.6 percentage points to 87.5%, the highest quarterly load factor in the Company’s history.
Net income excluding special items increased 38.7%, to Ps.319 million.

“We are very excited now that Volaris is a public company and we want to thank our investors for their support in the transaction,” said Enrique Beltranena, Volaris’ CEO. “In the quarter, Volaris delivered record operating revenue, maintained its growth trajectory and grew its market share while lowering fares and giving more options to our customers to choose what they want to pay for. Despite slower growth in the Mexican economy and the challenging competitive environment in Mexico during the quarter, these results show that our ultra-low-cost model is the right strategy for Mexico and all of our target markets.”

Market Drivers

Slower Mexico and US economic growth: The Mexican General Economic Activity Indicator (IGAE) increased an average of only 1.1% during the first eight months of 2013. Based on the weaker than expected economic activity, Mexico’s Central Bank cut its full year 2013 GDP growth estimate to 1.4%, in the last survey of economic expectations published on October 1, 2013. Similarly, in its latest summary of economic projections released on September 18, 2013, the US Federal Reserve cut its full year 2013 GDP growth estimate for the US to 2%-2.3%.
Weather conditions: In September 2013, as a result of adverse weather conditions and airport shutdowns in connection with hurricane “Ingrid” and tropical storm “Manuel”, Volaris canceled 18 flights, delayed more than 145 flights, and re-accommodated more than 2,200 passengers who were unable to fly as scheduled. The storms impacted 13 states in Mexico, resulting in a decline in bookings for the period. Volaris worked in coordination with the federal, state, and local authorities to assist people who were stranded in Acapulco due to the storms, transporting more than 1,600 customers on 11 humanitarian aid flights free of charge on the Acapulco – Mexico City route, which it does not operate regularly.
Exchange rate depreciation: The Mexican peso depreciated 3.6% quarter on quarter against the US dollar, as the exchange rate devalued from an average of Ps.12.46 pesos per US dollar in the second quarter 2013 to Ps.12.91 pesos per US dollar during the third quarter of 2013.
Fuel costs decrease: The average economic fuel cost per gallon decreased 4.8% year over year in the third quarter 2013.
Air traffic volume increase: Volaris accounted for 48% of the passenger volume growth in the first eight months of the year, among domestic carriers, according to the Mexican DGAC (Direccion General de Aeronautica Civil). The DGAC reported an overall passenger increase for the Mexican carriers of 9.5% for the same period.
New routes and operations: During the third quarter 2013, Volaris launched six new domestic routes. Operations, measured in total departures, increased 15.6% year over year.

Record Operating Revenue

For the third quarter 2013, Volaris’ total operating revenue was Ps.3,722 million, which represented an increase of 11.1% year over year compared to the third quarter 2012. The load factor was 87.5%, the highest quarterly load factor in the Company’s history, and a 3.6% increase year over year driven by our low-fare strategy.

Volaris booked 2.6 million passengers in the third quarter 2013, 25.4% more than in the third quarter of 2012. This increase in passengers was a result of our ongoing strategy to stimulate demand by targeting passengers who travel by bus and by offering lower base fares, which were lowered 12.8% year over year.

As compared to the third quarter 2012, passenger revenue per available seat mile (RASM) was 6.2% lower and total operating revenue per available seat mile (TRASM) was 4.6% lower, resulting from our lower fare structure combined with an increase in the domestic competitive environment that put additional pressure on our base fares in certain key markets.

Volaris traffic, measured in terms of revenue passenger miles (RPMs), increased by 21.6% year over year in the third quarter 2013 with the incorporation of nine new aircraft from October 1, 2012 to September 30, 2013.

During this period, our non-ticket revenue increased to Ps.503 million, a 24.8% increase as compared to third quarter 2012.

Continued Cost Discipline

The operating expenses per available seat mile (CASM) for the third quarter 2013 were Ps.113.9 cents, a 4.7% reduction compared to the third quarter of 2012, primarily driven by efficiency benefits and sustained cost control discipline. CASM excluding fuel also decreased 2.9% year over year.

Strong Balance Sheet and Liquidity

As of September 30, 2013, Volaris had Ps.2,974 million in unrestricted cash and cash equivalents, representing 23% of last twelve month total operating revenues. The Company recorded negative net debt (or a positive net cash position) of Ps.2,565 million and total equity reached 4,135 million.

During the third quarter 2013, Volaris incurred capital expenditures of Ps.163 million. The Company paid Ps.99 million in pre-delivery payments for future deliveries of aircraft net of refunds, and recorded additional purchases of rotable spare parts, furniture and equipment totaling Ps.64 million. The Company also obtained an extension of its pre-delivery payments facility for eight new aircraft with Santander and Bancomext for US$71 million, which now covers aircraft deliveries through the first half of 2016.

Young and Fuel Efficient Fleet

As of September 30, 2013, reflecting our strategy to further reduce our unit cost, Volaris has continued to take deliveries of larger A320 aircraft, bringing our mix of A320/A319s to a 50/50 split. The Company´s fleet was comprised of 44 aircraft (22 Airbus A320 and 22 Airbus A319), with an average age of 4.2 years. During the third quarter of 2013 Volaris received one new Airbus A320 aircraft equipped with sharklets.

On August 19, 2013, the Company selected Pratt & Whitney and International Aero Engines (IAE) to power its fleet of 30 A320neo and 14 A320ceo to be delivered between 2015 and 2020.

Other Current Highlights

In October, we successfully migrated to our new reservations system, called Navitaire, which will enable us to further develop our non-ticket revenues. We also took advantage of this platform migration to re-launch our new webpage and implement our new baggage policy.

Copyright Photo: Eddie Maloney/AirlinersGallery.com. Volaris’ Airbus A319-133 XA-VOH (msn 3253) named “Humberto” carries a new special livery promoting Mexico and the Rivieria Nayarit.

Volaris:

WestJet launches nonstop seasonal Calgary-Miami flights

WestJet (Calgary) yesterday (October 28) launched new nonstop seasonal service between Calgary and Miami, Florida, home to the largest cruise ship port in the world. The first flight leaves Calgary International Airport at 1:30 p.m. MDT and arrives at Miami International Airport at 8:45 p.m. EDT .

Details of WestJet’s new non-stop seasonal service between Calgary and Miami are:

Flight	Departing	Arriving	Effective
1500	Calgary at 1:30 p.m.	Miami at 8:43 p.m.	October 28, 2013
1501	Miami at 9:35 a.m.	Calgary at 1:45 p.m.	October 29, 2013

The launch marks the start of service four times weekly on Mondays, Thursdays, Fridays and Saturdays until December 14, 2013 . Effective December 16, 2013 , the service increases to six times weekly (Monday through Saturday).

Miami International Airport is a major hub of American Airlines, one of WestJet’s airline partners. From Miami , WestJet guests have the opportunity to connect to many different AA destinations throughout the United States , Central and South America. WestJet guests may also access Miami via American Airlines codeshare flights from Toronto and Montreal.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-7CT WL C-FEWJ (msn 32769) taxies to the gate at Miami International Airport.

WestJet:

JetBlue adjusts its fleet plans to larger planes, reports a 3Q net profit of $71 million

JetBlue Airways Corporation (JetBlue Airways) (New York) today announced plans to optimize its fleet, including:

Deferral of 24 Embraer ERJ 190 aircraft from 2014-2018 to 2020-2022, reducing capital expenditures over the near term.
Conversion of 18 Airbus A320 positions to A321s, better matching capacity with growing network demand in key markets while reducing unit costs.
An incremental order for 15 A321ceo and 20 A321neo aircraft, providing increased fleet flexibility and offering up to 15 percent in fuel burn savings.
Sharklet retrofit of up to 110 Airbus A320s in current fleet beginning in 2015.

“We believe these fleet changes will provide increased ability to match capacity and demand throughout our network and reduce costs, leading to improved shareholder returns over the long term,” said JetBlue President and CEO Dave Barger.

As a result of the fleet adjustments noted above, JetBlue will optimize its Embraer ERJ 190 fleet to approximately 60 aircraft in the near term.

“While the E190 is critical to our continued success in Boston and San Juan, we are now at the point where our network growth calls for larger gauge aircraft,” Mr. Barger said. “In addition to allowing us to more cost-effectively serve certain high density markets, we believe our fleet restructuring plan will allow us to accelerate attractive growth opportunities at Fort Lauderdale/Hollywood International Airport.”

JetBlue has converted 18 A320s to A321s. The A321 is expected to have unit costs 10 to 15 percent lower than those of the A320 aircraft it will replace, driven in part by a 10 to 15 percent improvement in fuel consumption per seat. “With significant savings from increased fuel efficiency and better utilization of our airport slot portfolio in key markets, we believe these A321 aircraft will improve our company’s profitability,” Mr. Barger said.

The fleet changes announced today will enable JetBlue to add 15 incremental A321ceo aircraft to its fleet by 2017, while deferring 24 E190 aircraft. “With today’s announcement, we are reducing our capital commitments through the next three years, which is consistent with our free cash flow and return on invested capital goals,” said JetBlue Chief Financial Officer Mark Powers.

In addition, JetBlue has placed an order for 20 A321neo aircraft for delivery beginning in 2018. Fuel savings associated with the new engine option A320 family is forecast to be approximately 12 to 15 percent compared to the current engine option A320 family.

JetBlue expects to retrofit up to 110 Airbus A320s in its existing fleet with sharklets beginning in 2015. Sharklets are expected to reduce fuel consumption by up to three percent.

Estimated Aircraft Delivery Schedule (2013-2022):

	4Q13	14	15	16	17	18	19	20	21	22
A320ceo (former order)	–	–	–	3	8	–	–	–	–	–
A320ceo (current order)	–	–	–	3	–	–	–	–	–	–
A320ceo change	–	–	–	–	(8)	–	–	–	–	–

A320neo (former order)	–	–	–	–	–	10	10	10	10	–
A320neo (current order)	–	–	–	–	–	5	–	9	16	–
A320neo change	–	–	–	–	–	(5)	(10)	(1)	6	–

A321ceo (former order)	4	9	10	7	–	–	–	–	–	–
A321ceo (cur order)*	4	9	12	12	15	1	–	–	–	–
A321ceo change	–	–	2	5	15	1	–	–	–	–

A321neo (former order)	–	–	–	–	–	–	–	–	–	–
A321neo (cur order)**	–	–	–	–	–	9	15	6	–	–
A321neo change	–	–	–	–	–	9	15	6	–	–

E190 (former order)	1	1	7	8	5	3	–	–	–	–
E190 (current order)	1	–	–	–	–	–	–	10	7	7
E190 change	–	(1)	(7)	(8)	(5)	(3)	–	10	7	7

Total fleet change	–	(1)	(5)	(3)	2	2	5	15	13	7

* JetBlue converted 8 A320ceo positions to A321ceo positions including 7 in 2017 and 1 in 2018
** JetBlue converted 10 A320neo positions to A321neo positions including 5 in 2018 and 5 in 2019

On the financial side, the company issued this report:

JetBlue Airways Corporation today reported its results for the third quarter 2013:

Operating income for the quarter was $152 million, resulting in a 10.5% operating margin. This compares to operating income of $113 million and an 8.6% operating margin in the third quarter of 2012.
Pre-tax income for the quarter was $119 million. This compares to pre-tax income of $73 million in the third quarter of 2012.
Net income for the third quarter was $71 million, or $0.21 per diluted share. This compares to JetBlue’s third quarter 2012 net income of $45 million, or $0.14 per diluted share.

“We are pleased to report our highest ever quarterly earnings and our fourteenth consecutive quarter of profitability,” said Dave Barger, JetBlue’s CEO. “These results reflect the success of our network strategy in high value geography and our focus on offering customers a differentiated product while maintaining competitive costs. I would like to thank our 15,000 crewmembers for their hard work and continued dedication to serving our 30 million customers.”

Operational Performance

JetBlue reported record third quarter operating revenues of $1.4 billion. Revenue passenger miles for the third quarter increased 5.4% to 9.56 billion on a capacity increase of 5.1%, resulting in a third quarter load factor of 85.0%, an increase of 0.2 points year over year.

Yield per passenger mile in the third quarter was 13.83 cents, up 5.1% compared to the third quarter of 2012. Passenger revenue per available seat mile (PRASM) for the third quarter 2013 increased 5.4% year over year to 11.75 cents and operating revenue per available seat mile (RASM) increased 5.0% year over year to 12.82 cents.

“Our record revenue results demonstrate the strength of our network in our hometown of New York and throughout the rest of our core network,” said Robin Hayes, JetBlue’s Chief Commercial Officer. “We are also very pleased with the success of our focused growth strategy in Boston, Fort Lauderdale and the Caribbean & Latin America. The combination of our strong brand and unique JetBlue Experience once again allowed JetBlue to generate a revenue premium versus our competitors in many of our key markets.”

Operating expenses for the quarter increased 8.1%, or $95 million, over the prior year period. JetBlue’s operating expense per available seat mile (CASM) for the third quarter increased 2.8% year over year to 11.47 cents. Excluding fuel and profit sharing, CASM increased 4.9% to 6.95 cents.

Fuel Expense and Hedging

JetBlue continued to hedge fuel to manage price volatility. During the third quarter JetBlue hedged approximately 29% of its fuel consumption and managed approximately 14% of its fuel consumption using fixed forward price agreements (FFPs), resulting in a realized fuel price of $3.14 per gallon, a 1.1% decrease over third quarter 2012 realized fuel price of $3.17. JetBlue recorded $3 million in losses on fuel hedges that settled during the third quarter.

JetBlue has managed approximately 39% of its fourth quarter projected fuel requirements using a combination of FFPs, collars, swaps and call options. Based on the fuel curve as of October 24th, JetBlue expects an average price per gallon of fuel, including the impact of hedges, FFPs and fuel taxes, of $3.03 in the fourth quarter.

Balance Sheet Update

JetBlue ended the third quarter with approximately $954 million in unrestricted cash and short term investments. In addition, JetBlue maintains a $200 million line of credit and a revolving credit facility for up to $350 million.

“We remain focused on strengthening the balance sheet,” said Mark Powers, JetBlue’s Chief Financial Officer. “We believe strong cash from operations will allow us to continue to grow sustainably as we increase our asset base and continue paying down debt, enhancing long term shareholder value.”

Fourth Quarter and Full Year Outlook

For the fourth quarter of 2013, CASM is expected to be between negative 1.0% and positive 1.0% compared to the year-ago period. Excluding fuel and profit sharing, CASM in the fourth quarter is expected to be between negative 0.5% and positive 1.5% year over year.

CASM for the full year is expected to increase between 1.0% and 3.0% over full year 2012. Excluding fuel and profit sharing, CASM in 2013 is expected to increase between 2.5% and 4.5% year over year.

Capacity is expected to increase between 7.0% and 9.0% in the fourth quarter and to increase between 5.5% and 7.5% for the full year.

Copyright Photo: Stephen Tornblom/AirlinersGallery.com. JetBlue is now capping its Embraer ERJ 190 at around 60 aircraft. ERJ 190-100 IGW N203JB (man 19000023) in the Bubbles tail motif climbs away from the runway at the New York (JFK) hub.

JetBlue Airways:

Virgin America introduces its new safety video (it is a new world to get out your message)

Virgin America (San Francisco), the airline that first put an irreverent twist on the in-flight safety video in the U.S., is taking its pre-flight safety education to new heights with the first-ever domestic safety video set entirely to music and performed in dance. Launching on Google Play, YouTube and live on digital billboards across Times Square including the American Eagle billboard (at W. 46th Street & Broadway) at 12 p.m. ET yesterday, the video will take to the skies on flights nationwide in November. Virgin America first made waves in the safety video genre in 2007, when it became the first domestic airline to feature a cheeky in-flight safety video across its fleet. The cult favorite animated video will still be featured onboard the airline’s Red™ in-flight entertainment platform, but the new “VX Safety Dance” video will freshen up the rotation with a unique pre-flight safety experience that flyers will enjoy – and pay attention to. The new video was directed by Hollywood blockbuster film director (and Virgin America frequent flyer) Jon M. Chu (G.I. Joe: Retaliation, Step Up 2) and includes some of the top dancers, singers and choreographers from American Idol and So You Think You Can Dance – with production by Virgin Group’s entertainment arm, Virgin Produced.

Bottom Line: For all other staid airlines: The old way of presenting information (including the required safety information) is dead. In order to be on the cutting edge today, especially with the new “You Tube Generation” customer base, you need to stand out and be different especially with lively videos. Some airlines get it, many others do not. Largely led by Air New Zealand in the industry, Virgin America is also a proud member of this fast growing group. For the older CEOs and airline managers clinging to the past, it is a new and different age. You must adapt or be left behind.

Have you seen other interesting video examples from other airlines? Send us the link and we will share them with the WAN readers: airliners gallery@gmail.com. Thank you.

Virgin America:

SAS operates its last McDonnell Douglas DC-9-82 (MD-82) flight, ending a long relationship with Douglas airplanes

Scandinavian Airlines-SAS (Stockholm) operated and quietly retired their last McDonnell Douglas DC-9. The last MD-80 was operated on October 26, 2013 on flight SK403 from Stockholm-Arlanda to Copenhagen. This is the first time SAS will be without a Douglas aircraft in its fleet. SAS has operated every Douglas and McDonnell Douglas type since the DC-3 (except the DC-5 and the MD-11).

The last revenue flight (flight SK 403) was operated by McDonnell Douglas DC-9-82 (MD-82) SE-DIR “Nora Viking” (msn 53004) between Stockholm (Arlanda) and Copenhagen on October 25. A special employee-only farewell flight was flown by DC-9-82 (MD-82) LN-RMM (msn 53005) on October 26 over Denmark.

DC-9-82s SE-DIR, OY-KHE (msn 49604) and LN-RMM all operated on the last day of revenue operations (October 25).

One of the aircraft will be donated to the SAS Museum outside of Oslo.

According to a Danish newspaper, the SAS MD-80s operated 3,134,900 flights with the 66 aircraft in the fleet. 2,977,195,000 km were flown since the type was introduced in October 1985.

All of the above information is from Airliners.net.

In other news, SAS recently finalized its Airbus long-haul order. On June 25, 2013, SAS and Airbus signed a Memorandum of Understanding (MOU) for the order of 12 new long haul aircraft.

This month, SAS and Airbus signed the final long haul aircraft order agreement comprising 4 A330-300 Enhanced and 8 A350-900 plus 6 options for A350-900. The Airbus A330 will be delivered 2015/16 and the Airbus A350 will be delivered from 2018.

Copyright Photo: Moritz Riemer/AirlinersGallery.com. DC-9-82 (MD-82) OY-KHE (msn 49604) in the Star Alliance livery arrives at Copenhagen.

Scandinavian Airlines-SAS:

Video:

Alaska Airlines orders 111 firm Split Scimitar Winglet Systems for its new Boeing 737s

Aviation Partners Boeing (APB) today announced the order of 111 firm Split Scimitar Winglet Systems for Boeing Next-Generation 737 aircraft by Alaska Airlines (Seattle/Tacoma). APB’s newest program is the culmination of a five year design effort using the latest computational fluid dynamic technology to redefine the aerodynamics of the Blended Winglet into an all new Split Scimitar Winglet. The unique feature of the Split Scimitar Winglet is that it uses the existing Blended Winglet structure, but adds new strengthened spars, aerodynamic scimitar tips, and a large ventral strake.

“We expect Split Scimitar Winglets to be certified and enter revenue service by the end of this year; having Alaska Airlines, our hometown partner, be one of the very first airlines worldwide to feature Split Scimitar Winglets is extremely gratifying and a testament to our long term partnership,” said Patrick LaMoria, Aviation Partners Boeing chief commercial officer.

Alaska Airlines has been a model of success in the airline industry and is known for embracing innovative technology to improve its customers’ experience. Alaska expects the incremental fuel savings from APB’s latest drag reducing technology will add another 58,000 gallons of annual fuel savings per aircraft per year. Once all their Next-Generation 737-800s, 737-900s, and 737-900 ERs are fitted with Split Scimitar Winglets, Alaska estimates that it will save another $20 million in annual fuel costs. These fuel savings will also translate into an environmental benefit by reducing Alaska Airlines CO2 output by more than 68,000 tons per year.

Aviation Partners Boeing’s Split Scimitar Winglet program is the most successful product launch in its history. Since launching the program early this year, APB has now taken orders and options for over 766 Split Scimitar Winglet systems. Over the last 10 years, APB has sold over 7,000 Blended Winglet Systems. Nearly 5,000 Blended Winglet Systems are now in service with over 200 airlines in more than 100 countries. APB estimates that Blended Winglets have saved airlines worldwide nearly 4 billion gallons of jet fuel to-date.

Production Schedule:

Aviation Partners Boeing is a Seattle based joint venture of Aviation Partners, Inc. and The Boeing Company.

Image: Alaska Airlines.

Alaska Airlines:

Video: A Split Scimitar Winglet is being tested on an United Airlines Boeing 737-800 at Moses Lakes, WA. The 737-800 has been flying since July 2013 with this new enhancement.

Southwest Airlines’ latest ad: These DooHickeys save you money

Southwest Airlines (Dallas) is now promoting the Aviation Partners Boeing Blended Winglets, called “DooHickeys”, in its latest Fall 2013 TV advertisement campaign. The reference to the winglet leading to savings and to lower prices is stressed and also impressed on the viewer. It is the first time we can remember that an airline has brought the winglet enhancement to the attention of the passenger and tied in the enhancement with lower fares including their $59 fares.

Southwest Airlines:

Videos: Southwest Airlines. Top, the actual TV ad and below a behind the scenes look at the ad campaign:

Jat Airways is replaced by Air Serbia

Jat Airways (Belgrade) is no more. The national carrier of Serbia was succeeded by replacement carrier Air Serbia (Belgrade) yesterday (October 26). Air Serbia is the result of a new strategic partnership between the Government of Serbia and Etihad Airways (Abu Dhabi). The majority 51 percent of the shares of new Air Serbia are now owned by the Serbian Government and the remaining 49 percent by Etihad Airways which has been on a spending spree to to partially acquire and transform underperforming national carriers to feed its own operations.

Jat Airways is now defunct.

Air Serbia’s inaugural flight departed Belgrade yesterday for Abu Dhabi.

Here is the history of troubled Jat Airways (from their website):

Jat Airways’s predecessor, the Society for Air Transport AEROPUT, was founded on June 17, 1927. This date marks the beginning of civil aviation in our country. The first aircraft to fly under the company name Yugoslav Airlines took off 20 years later, on April 1, 1947.

In mid-January 1947, the civil aviation traffic administration became part of the Transport Ministry, thereby confirming its civilian status. On March 17, 1947, pilots, navigators, radio operators and flight mechanics were transferred from the Transport Regiment to the newly formed company. In the meantime, the company acquired modified aircraft and the first flying season was launched on April 1, 1947.

After weathering the winds of war, AEROPUT pilots and mechanics joined Yugoslav Airlines crews in JAT’s earliest days.

Yugoslav Airlines kicked off with two Douglas C-47 aircraft modified into a DC-3 and two JU-52 Junkers. In the course of the year, the fleet grew by another JU-52, four DC-3s and one unmodified C-47 intended for cargo transport. These aircraft maintained regular traffic on domestic lines: Belgrade-Zagreb-Ljubljana and Zagreb-Sarajevo, and on international lines: Belgrade-Prague-Warsaw.

The first three Sud Aviation Caravelle airplanes joined the JAT fleet in 1963, and the fleet continued to grow six years later with the addition of the first Douglas DC-9, and seven years later with the first Boeing 707. At the same time, the last of the piston-engine veterans – the DC-3 and Convair – were withdrawn from the fleet. The introduction of jet engine aircraft enabled more comfortable and affordable flights – far exceeding the characteristics of piston engine aircraft. With increased capacity and range, these planes served as a basis for expanding the flight network, enabling the company to appear in third markets and make a bid for genuine air traffic growth. This was the main course of Yugoslav Airlines development through the early 1970s, a period tentatively termed by the company as “the beginning of jet aviation”.

Just as the beginning of the 1960s was decisive due to the introduction of the first jet-engine aircraft, so were the 1970s with the introduction of the “big Boeing” – the Boeing 707, after which the first charter lines were established to North America with regular traffic. In addition to the introduction of the Douglas DC-10-30, the first wide-body aircraft, in 1978, this period represented the beginning of one of the most important stages in JAT’s evolution.

Persistent investment in modernization and the acquisition of the McDonnell Douglas DC-10-30 guided Yugoslav Airlines to yet another phase of development, the so-called wide-body stage, which was followed several years later by the purchase of a medium-range aircraft – the Boeing 737. This acquisition, among the first in Europe, established a basic pre-condition for further expansion of traffic in nearly all directions. Also, existing lines in Europe, the Middle East and Africa were significantly extended, followed by network expansion to the US, Canada and Australia.

During those “golden years”, as some JAT chroniclers have dubbed the period, Yugoslav Airlines opened many offices abroad, carried five million passengers annually, continued to develop and modernize its technical operations parallel to developing service activities such as general aviation, hotel commerce, operating its own training centre and investing in infrastructure. JAT also constructed a large hangar to accommodate wide-body aircraft and a jet-engine test stand, which enabled the company to master the technique of examining engines and other components for modern fleets. Furthermore, the company proved excellent in business skills, successfully negotiating contracts with several third world companies.

Meanwhile, JAT developed its information system and introduced automatic ticket sales. In short, the company made a bid to meet its competition by responding to the growing demands and expectations of its passengers while continuing to satisfy regular passengers by living up to the famous company slogan – JAT is MORE THAN FLYING.

Yugoslav Aerotransport changed its name to Jat Airways on August 8, 2003.

Top Copyright Photo: Rolf Wallner/AirlinersGallery.com. A fine taxiway study of Jat Airways’ Boeing 737-3Q4 YU-AON (msn 24208) in the last color scheme at Zurich. The Jat Airways Boeing 737-300s are being replaced with newer Air Serbia Airbus A319s, another narrow body customer loss for Boeing.

Jat Airways:

Air Serbia:

Video:

Bottom Copyright Photo: Greenwing/AirlinersGallery.com. Former TACA AIrbus A319-132 N473TA (msn 1140) has become A6-SAA on lease from Etihad Airways to Air Serbia.

Air France is upset with Alitalia

Air France‘s (Paris) CFO Philippe Clavia complained in a letter to Alitalia (2nd) (Rome) about how the Italian airline failed to inform its airline partners, namely the Air France-KLM Group, about key meetings concerning a new capital infusion. Although the group finally voted for the recent infusion of capital, Air France is upset about how the whole event was handled according to this report by Reuters.

Further, Air France-KLM was not provided any written information, just “orally and in a cryptic way”, often just in Italian, the newspaper Il Messaggero reported, quoting the letter.

Read the full report: CLICK HERE

Copyright Photo: Christian Volpati/AirlinersGallery.com. Boeing 747-428 F-GITH (msn 32868) of Air France prepares to taxi from the Charles de Gaulle (CDG) Paris hub. Air France is planning to phase out its last Boeing 747-400 passenger aircraft in 2016.

Air France:

Alitalia:

Augsburg Airways operates its last flight for Lufthansa

Augsburg Airways (Munich) today (October 26) operated the last Lufthansa Regional flight for Lufthansa. The airline is closing down as a result. Augsburg was the last independent contractor operating for Lufthansa.

The company started operations as Interot Airways in September 1986. It adopted the current name on November 6, 1995.

Top Copyright Photo: Arnd Wolf/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) D-ADHT (msn 4281) in the Lufthansa Regional 2003 livery wears special “Last day” and “bye bye” markings as it approaches Munich on the very last flight for Lufthansa today.

Bottom Copyright Photo: Tony Storck/AirlinersGallery.com. This historic photo captures the very last arrival for Augsburg Airways at the Munich hub.