Norwegian second quarter results: Positive effect of completed reconstruction process and steady uplift of demand

Norwegian reported its second quarter results and published the H1 2021 financial report. The results continued to be impacted by COVID-19 and travel restrictions in all markets. However, following the successful completion of the reconstruction process and the subsequent NOK 6 billion equity raise, the company is now well positioned for future growth and to respond to increased customer demand.

Geir Karlsen, CEO of Norwegian, said: “The H1 financial report and Q2 results mark a clear improvement in both the financial situation, due to lower operating costs and the successful completion of the reconstruction process of the company, and the gradual ramp up of our operations in response to increased passenger demand.”

Profit before tax (EBT) was NOK 1,590 million in the first half of 2021, compared with a loss of NOK 4,792 million in the same period in 2020. For the first half of 2021, production (ASK) was reduced by 94 percent compared to the same period last year. Total revenue in the first half of 2021 was NOK 591 million, compared with NOK 7,138 million in the same period last year, a decrease of 92 percent. Unit revenue increased by 22 percent following a yield increase of 93 percent and a decreased load factor by 28.8 percentage points. Average sector length decreased by 62 percent. At the end of first half of 2021, the total fleet comprised 51 aircraft. Up to 32 aircraft were operational during the first half of 2021 due to travel restrictions and lower demand.

In the second quarter of 2021, the company successfully exited the examinership and reconstruction process which improved equity by NOK 10.7 billion.

Norwegian has committed to be a price leader in the Nordic markets, offering affordable fares and a reliable service to more than 250 routes across its European network. The company value simplicity when travelling and thanks to the Norwegian Travel Assistant app and the award-winning loyalty programme ‘Norwegian Reward’, which counts over four million members, passengers can easily control every aspect of their journey. Onboard, Norwegian continues to offer a modern and comfortable flying experience with free WiFi available for all passengers.

”The results continue to be heavily impacted by international travel restrictions. However, Norwegian is now in a much stronger financial position and is able to plan for the future with renewed confidence and focus. Forward bookings continue to increase in response to the relaxation of travel restrictions and the roll out of international vaccination programs. We expect to see this trend continue in the remaining months in 2021 and through 2022,” Karlsen continued.

Cash and cash equivalents were NOK 7,475 million at the end of first half of 2021, an increase of NOK 4,808 million compared with the end of 2020. Norwegian now has a fully reconstructed balance sheet with close to zero net interest-bearing debt, a strong cash position and a rightsized business.

Virgin Australia to add nine Boeing 737-800 aircraft, will require employee vaccinations

Virgin Australia will introduce nine additional Boeing 737-800 aircraft into its mainline fleet from October this year in preparation for an expected increase in domestic travel as vaccination rates rise and interstate borders open.

The aircraft are planned for operation over the peak summer season to accommodate expected holiday travel, with an aim for all nine to be in the air by mid-February 2022.

Virgin Australia has also commenced planning for the mid-2023 arrival of its first Boeing 737 MAX 10 aircraft, which will deliver greater operational efficiencies and enhanced product and design features for customers and the environment.

The nine Boeing 737-800 NG aircraft have specifications that are compatible with Virgin Australia’s existing fleet.

CURRENT MAINLINE FLEET

As at August, 2021

PLANNED MAINLINE FLEET

By March 2022

2 x Boeing 737-700

66 x Boeing 737-800

Total: 68

2 x Boeing 737-700

75 x Boeing 737-800

Total: 77

In other news, the airline also made this announcement:

Virgin Australia has announced that it is commencing consultation with employees and unions over its proposal to require COVID-19 vaccination for all team members, on the basis that vaccination is necessary to keep their people, customers and the wider Australian community safe.
A consultation process will commence shortly with relevant unions, employees and safety committees. Under the proposed policy, frontline team members will be required to be vaccinated by 15 November 2021, and all office-based team members by 31 March 2022.
Following consultation, and after we have considered feedback from employees and unions, a final policy will be announced next month.
Virgin Australia understands some team members have concerns and questions and has established an education campaign to assure and inform as many employees as possible ahead of 15 November 2021.
Virgin Australia will launch its VA-X & WIN competition for staff and customers this week to encourage all Australians to get behind vaccination.

Virgin Australia has announced that it is commencing consultation with unions and employees to require COVID-19 vaccination for all team members. The company believes that requiring vaccination is the best way to protect the health and safety of our workforce, and in turn the wider Australian community and everyone’s way of life.

A consultation process will commence shortly with relevant unions, employees and safety committees before Virgin Australia decides a final policy next month.

It is currently proposed that all frontline team members be vaccinated by 15 November 2021, and all office-based team members by 31 March 2022. Those with medical issues that can be substantiated will be managed on a case-by-case basis.

Virgin Australia CEO Jayne Hrdlicka said that recent events have demonstrated that it only takes one person to create a knock-on effect which creates significant impacts for our employees and the community more broadly.

Virgin Australia will continue to assist employees with securing vaccination appointments and provide flexible working arrangements, so team members can receive their vaccinations.

A recent survey of Virgin Australia team members found that over 75 per cent of our frontline workforce have received at least one dose of a COVID-19 vaccine, with another 9 per cent registered for vaccination. In relation to our office-based workforce, who do not get the same priority access to vaccines as our frontline team members, over 56 per cent have had at least one dose, with another 27 per cent registered to be vaccinated.

American is opening PHL to Afghanistan evacuees

American Airlines made this announcement:

Following news that Philadelphia International Airport (PHL) would become the second entry point for evacuees arriving on Civil Reserve Air Fleet (CRAF) flights, American Airlines quickly mobilized to assist airport partners and city officials to prepare.

Leveraging knowledge and experience from previous operations at Dulles International Airport (IAD), American worked with PHL Airport Operations and federal partners to develop a process that would expedite CRAF arrivals. Central to the plan, passengers and crew would be allowed to deplane into secure areas of the airport rather than waiting on board aircraft — improving the experience for evacuees and ensuring aircraft could be cleaned and redeployed on future missions without delay.

Overnight, portions of Terminal A-West and the Terminal A-East baggage claim volunteered by American were secured and repurposed into relief areas for evacuees waiting to be vetted and screened for entry into the U.S.

An array of city, state and federal agencies as well as local hospitals and nonprofit organizations also mobilized to provide care and assistance to evacuees after arrival. Once initial vetting and coronavirus testing are complete, evacuees have on-site access to Dari, Pashto, Farsi and Urdu translation services, religious space, medical care and aid stations with food, medicine, personal care items and children’s toys.

The plan was put to the test Saturday morning. Shortly after 4 a.m. ET, an American Boeing 777-200 with hundreds of evacuees touched down from Europe — and within 40 minutes, all passengers and crew were able to deplane. Since then, the process has continued to improve. American’s second mission, which arrived at PHL on Saturday, took less than 20 minutes to offload passengers and bags. Several military aircraft have also landed at PHL since Operation Allies Refuge expanded to PHL. Unable to utilize jet bridges, American provided airfield buses to transport evacuees from remote pads to the terminal.

“We’ve been able to develop and refine a seamless 24/7 operation led by the airport, city agencies, the military and our federal partners,” said Anthony Stanley, PHL Director of Administration and Planning for American Airlines. “In the past three days, more than 1,600 evacuees have arrived at PHL on CRAF flights — and we’re prepared to welcome even more in the coming days.”

LaGuardia Airport-based Flight Attendant Connie Mirando, who worked the first arrival into PHL, described the experience as humbling. “I joined the CRAF volunteer list after 9/11 as a way to help, and it was truly a once in a lifetime opportunity to serve. I struggle to imagine what these families have been through and am overwhelmed by their kindness, gratitude and perseverance.”

ExpressJet is close to receiving its Part 121 AOC

ExpressJet Airlines made this announcement:

On August 24th, ExpressJet reached a major milestone by successfully demonstrating a flight under Part 121 for the FAA. After a few administrative items are completed, ExpressJet will receive full FAA approval to conduct revenue operations under its 121 certificate.

Photo: MAI-Myanmar Airways International Embraer 190-100LR P4-KCG (msn 19000543) MST (Rainer Bexten). Image: 954847.

Copyright Photo: MAI-Myanmar Airways International Embraer 190-100LR P4-KCG (msn 19000543) MST (Rainer Bexten). Image: 954847.

United’s Boeing 777-200s with P and W engines involved in Denver incident may not fly until next year – WSJ

From Reuters:

“Dozens of United Airlines Holdings Inc jets like the one that lost an engine cover over Colorado in February may not fly until early next year, the Wall Street Journal reported.

United had hoped to resume flying the Boeing 777-200 wide-body jets this summer, the report added, but returning them to service has taken longer-than-expected as federal regulators consider potential new requirements for some Boeing 777 jets powered by Pratt & Whitney (PW) engines.

Regulators are considering an extra engine-blade inspection and a proposed modification aimed at preventing engine covers from ripping off should a fan blade break during flight.”

Above Copyright Photo: United Airlines Boeing 777-222 ER N211UA (msn 30217) LAX (Michael B. Ing). Image: 954845.

United aircraft slide show:

Smartavia announces its winter schedule

Smartavia made this announcement:

We are pleased to announce that we have opened the sale of tickets for regular flights of the autumn-winter flight schedule, which will be valid from October 31, 2021 to March 26, 2022.

From Arkhangelsk you can buy tickets for flights to Moscow (Domodedovo Airport) and St. Petersburg. This winter, in comparison with the previous one, flights to the two most popular destinations among the residents of Pomerania will be carried out daily with an increased frequency: in Domodedovo – 2 times a day, in Pulkovo – 3 times a day.

Also in the autumn-winter schedule will continue to operate traditional flights from Murmansk to Moscow and St. Petersburg, from Syktyvkar to St. Petersburg, from Naryan-Mar to Arkhangelsk and St. Petersburg.

In the coming winter, most of the flights in the Smartavia route network will be operated from the Northern capital of Russia. Due to the increased demand and for the convenience of passengers on popular destinations, the frequency of flights will be increased compared to the winter schedule of 2021.

The number of flights from St. Petersburg to Russian cities will increase: Samara (14 flights per week), Kaliningrad (10 flights per week), Chelyabinsk, Rostov-on-Don, Sochi, Ufa, Kazan (up to 7 flights per week).

For the first time in the winter schedule, travelers from St. Petersburg will be able to go direct Smartavia flights to Simferopol (up to 5 times a week), Mineralnye Vody (3 times a week), Anapa, Krasnodar, Tyumen, Perm and Orenburg (up to 7 times a week).

An increase in the number of flights from Moscow is also expected. From the domodedovo base airport, Smartavia will fly more often to Sochi, Kaliningrad, Simferopol, Samara, Vladikavkaz, Orenburg, Mineralnye Vody, Rostov-on-Don and Makhachkala. The number of flights on these routes will increase to 7 per week. Among the new destinations within the winter schedule will be flights to Novosibirsk, Saratov and Krasnodar. And also Smartavia will maintain the program of flights from Moscow to Ulan-Ude with a frequency of 4 flights per week.

Fleet:

Top Copyright Photo: Smartavia (Nordavia) Boeing 737-86N WL VQ-BBY (msn 36819) AYT (Ton Jochems). Image: 954844.

Smartavia aircraft slide show:

NAC completes delivery of ten Embraer E190s to Breeze Airways on operation lease

Nordic Aviation Capital (NAC) has announced the completion of a ten Embraer E190 aircraft transaction with Breeze Airways. From the delivery of the first E190 in February 2021 through to the tenth, both the NAC and Breeze teams have successfully delivered each aircraft despite the significant restrictions caused by COVID-19.

Route Map:

K-Mile Air to operate Boeing 737-800F freighters for DHL

DHL Express has made this announcement:

In anticipation of the upcoming e-commerce peak season where DHL Express expects orders and sales to rise significantly, the world’s leading international express service provider has expanded its airfreight capacity within Asia with a newly converted Boeing 737-800 freighter.

Operated by K-Mile Asia, a partner of DHL, the new aircraft offers a total gross payload of close to 140 tons weekly as it travels six times a week from Hanoi to Hong Kong and Bangkok before making its return to Hanoi. This is a 30 percent increase in capacity carried previously by the Boeing 737-400SF freighter, enabling better preparation and response to the anticipated growth in shipment volumes in the coming months.

The expanded capacity and increased flight frequency from five to six times per week will equally enable businesses and consumers from the three markets to capitalize on the growth in trade opportunities within Asia, as they benefit from quicker deliveries and shorter transit times.

The new Boeing 737-800 aircraft connecting Bangkok, Hong Kong and Hanoi joins three other aircraft in the fleet that concurrently and collectively serve Hong Kong, Phnom Penh, Singapore and Jakarta.

K-Mile Air, operating as K-Mile Asia, was established in 2004 as Thailand’s first express freight airline. Our initial operations began in 2006 with a Boeing 727 freighter between BKK and SIN. The fleet subsequently expanded to 3 such aircraft. These aircraft have since been retired in 2013.

In March 2014, Farnair Switzerland took a 45% stake in K-Mile Air. Since then ASL Aviation Holdings has taken over ownership of Farnair and has been a valuable partner with extensive domain expertise. ASL is a global aviation services provider with operations on 6 continents and a fleet of 140 aircraft in 6 airlines in Europe, South Africa and Asia.

Our Boeing 737-400SF operations were launched in July 2014 and continue to cater to the growing intra-Asia airfreight.

Our current scheduled routes include:

HAN-HKG-BKK-HAN / 5 rotations per week / since Nov 2014
PNH-BKK-SIN-BKK-PNH / 5 rotations per week / since Apr 2016
CGK-SIN-CGK (as an extension to the above route from SIN)/ 4 rotations per week / since Feb 2017

Our airline is managed and operated by a team of highly experienced aviation professionals, based at our offices at Suvarnabhumi Airport, Bangkok. K-Mile remains the only Thai freighter airline, with most of our business focused on air operations for express integrators and charter services across Southeast Asia.

Demand for connecting major cities within Southeast Asia is ever increasing, as is demand between Southeast Asian cities and major cities within China. K-Mile Air has a competitive advantage to best support this growth in trade and cross border e-commerce.

Ethiopian Airlines and Boeing have signed a strategic MOU to position Ethiopia as Africa’s Aviation Hub

Ethiopian Airlines Group and the Boeing company have signed a strategic Memorandum of Understanding (MOU) on positioning Ethiopia as an aviation hub for Africa. Building on the two parties’ seventy years of shared history in aviation, the MOU aims at positioning Ethiopia as Africa’s aviation hub – “Ethiopia for Africa”.

Boeing has recognized Ethiopian as a global aviation leader in the continent. The MOU is indicative of Boeing and Ethiopian Airlines interest to establish a mutually beneficial world class aviation partnership.

To realize their shared vision, Ethiopian and Boeing have agreed to work in partnership in four areas of strategic collaboration namely: Industrial Development, Advanced Aviation Training, Educational Partnership, and Leadership Development in a span of three years. To this effect, joint multidisciplinary teams have been established to implement the strategic partnership and important milestones have already been registered.

Ethiopian and Boeing desire Ethiopian Aviation Academy to be recognized as a global standard for aviation training. Boeing is committed to developing Ethiopia’s manufacturing capability and aftermarket aviation service. Through this MOU, Boeing and Ethiopian will partner to advance capabilities to compete globally. They seek to build a 21st century pipeline for aviation careers in Ethiopia. They will collaborate with highly qualified educational institutions and aviation industry partners to create specialized learning and development programs to meet workforce demands. Boeing and Ethiopian will also work together to develop current and future generations of leaders in Ethiopia for Africa.