Tag Archives: 737-900ER

Alaska Air Group to reward its employees with a 9%+ bonus

Alaska Air Group (Alaska Airlines and Horizon Air) (Seattle/Tacoma) had a good financial year in 2014. The group is now rewarding its employees and has issued this statement:

Employees at Alaska Airlines and Horizon Air are receiving annual bonuses today of more than 9 percent of their annual pay, or more than five weeks’ pay for most workers. The bonus is in addition to the approximately $1,000 in 2014 monthly bonuses that most employees earned for achieving on-time and customer satisfaction goals.

The combined monthly and annual bonuses amounted to nearly $116 million, the highest in Alaska’s history, and are part of the company’s incentive-based pay program.

“We’re really excited to reward our employees for all the great work they’ve done this year,” said Tammy Young, Alaska Airlines’ vice president of human resources. “This is the sixth year in a row Alaska and Horizon employees have exceeded their payout targets for performance-based pay.”

Nearly $51 million in annual bonuses — 55 percent of the total — is being paid to nearly 6,000 Alaska and Horizon employees in the Puget Sound area. Another $12 million is being paid to 2,122 employees in the Portland, Oregon, area, while $9 million is going to workers throughout the state of Alaska.

Bonuses in Alaska Air Group’s Performance Based Pay Plan are determined by meeting specific company-wide goals for safety, customer satisfaction, cost control and profit that are approved annually by the board of directors. Since the inception of the program in 2003, Alaska has paid employees $624 million in combined incentive-based pay and monthly bonuses.

As part of its philosophy to provide employees with rewarding careers and good retirement benefits, Alaska Air Group has contributed $620 million over the past 6 years to its defined benefit pension plans, which were fully funded in 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-990 ER N469AS (msn 41702) prepares to land in Anchorage.

Alaska Airlines aircraft slide show:

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

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

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

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

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

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

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

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

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

Fourth-Quarter Revenue and Capacity

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

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

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

Fourth-Quarter Costs

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

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

Fourth-Quarter Liquidity and Cash Flow

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

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

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

Read the full report: CLICK HERE

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

United Airlines aircraft slide show (historic liveries):

United Airlines aircraft slide show (current livery):

American Airlines and El Al expand their codeshare relationship

American Airlines (Dallas/Fort Worth) is expanding its codeshare relationship with El Al Israel Airlines (Tel Aviv). According to Airline Route, American on December 18 added its AA code on the following El Al European routes:

Tel Aviv – Amsterdam
Tel Aviv – Barcelona
Tel Aviv – Frankfurt
Tel Aviv – London (Heathrow)
Tel Aviv – Milan (Malpensa)
Tel Aviv – Munich
Tel Aviv – Paris (CDG)
Tel Aviv – Rome (Fiumicino)

American Airlines aircraft slide show (current livery):

El Al aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Asia-1/Airlines-Asia1-AE/El-Al-Israel-Airlines

Alaska Airlines flight attendants ratify the new five-year contract

Alaska Airlines‘ (Seattle/Tacoma) flight attendants have approved a new five-year contract. Included in the new contract are quality of life enhancements and pay increases that rank Alaska’s 3,400 flight attendants among the highest paid in the industry at every pay step.

Under the Railway Labor Act, which governs collective bargaining agreements in the airline industry, contracts do not expire, they only become amendable. The previous agreement became amendable on May 1, 2012 and the new contract will become amendable again on December 17, 2019.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alaska Airlines’ Boeing 737-990 ER SSWL N459AS (msn 36352) arrives in Los Angeles with Aviation Partners Boeing Split Scimitar Winglets.

Alaska Airlines aircraft slide show:

Ukraine International to start new routes to Riga and Minsk

Ukraine International Airlines-UIA (Kiev) has announced it will connect Kiev with Riga and Minsk with Boeing 737 aircraft starting on March 30, 2015.

The Kiev – Riga – Kiev routing (PS 185/186) will be operated five times per week on weekdays.

Starting on April 20 and through October 25, 2015, the Kiev – Minsk – Kiev flights (PS 891/892) will be operated seven times per week.

Moreover, in summer 2015 UIA plans to launch nonstop scheduled flights from Kiev to Amman, Jordan.

Ukraine International Airlines in the summer 2015 season is also introducing Kiev – Beijing service, on board Boeing 767 aircraft. Service begins on April 29, 2015 with two weekly flights, while the third weekly flight will be added on May 10, 2015.

Copyright Photo: Ton Jochems/AirlinersGallery.com. UIA’s Boeing 737-94X ER UR-PSK (msn 36086) in the Sky Airlines colors pushes back at Antalya.

Ukraine International aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-3/Airlines-Europe3-QZ/Ukraine-International-Airlines

Delta redefines its cabins, upgrades the Premium Economy options

Delta Air Lines (Atlanta) today announced it is also redefining its travel products with this announcement:

Delta Air Lines is redefining the products it offers customers to further distinguish the choices available to them. Delta will offer best-in-class options for each of its customer segments with innovative multi-cabin experiences. Customers will have five products to choose from, including Delta One, First Class and Delta Comfort+ which offer premium amenities. Main Cabin and Basic Economy service will offer value options with Delta’s high standards of service.

Photo: Delta Air Lines. The new Boeing 737 First Class.

“We’re providing Delta customers with a thoughtful, well-defined spectrum of options as they make decisions about travel,” said Glen Hauenstein, Executive Vice President and Chief Revenue Officer. “Whether a customer prioritizes the perks of Delta One or the value of Basic Economy, every seat comes with impeccable service and unmatched reliability.”

Providing an easy-to-recognize range of products and a high level of service is the latest step in Delta’s strategy to offer differentiated experiences to customers seeking to tailor travel to their specific needs.

Photo: Delta Air Lines. The Delta Comfort Plus cabin.

Starting March 1, 2015, Delta customers can choose between:

Delta One, formerly BusinessElite, is offered on long-haul international routes; also between New York-JFK and Los Angeles or San Francisco*
First Class is offered on short-haul international and domestic routes**
Delta Comfort+ offers an upgraded experience on all two cabin aircraft around the world
Main Cabin experience is provided everywhere Delta flies offering a high standard of customer service
Basic Economy offers Main Cabin service with fewer flexibility options available in select markets.

*Delta One full flat-bed and Delta Comfort+ seat upgrades between New York and San Francisco are projected to be complete in the spring of 2015. **Select international flights may offer Business Class service in lieu of First Class. Amenities in the Business cabin may vary by flight and aircraft.

Chart of services by class:

Read the analysis by Bloomberg Businessweek: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. The “Spirit of Seattle” arrives in Los Angeles. Boeing 737-932 ER N809DN (msn 31915) has been decorating with the special markings.

Delta Air Lines aircraft slide show (current livery):

Video: Delta Air Lines is introducing branded products to further distinguish the variety of choices to improve the travel experience. Each of the five distinct products – Delta One, First Class, Delta Comfort+, Main Cabin and Basic Economy – will be available starting March 1, 2015.

Delta to introduce the Boeing 737-900 ER on two more routes from Los Angeles

Delta Air Lines (Atlanta) on January 5, 2015 will introduce the Boeing 737-900 ER on the Los Angeles-Guadalajara route followed by Los Angeles-Phoenix on February 13, 2015 per Airline Route.

Additionally for next summer, Delta plans to use the stretched 737 on the Atlanta-Grand Cayman route weekly on Saturdays from June 8 through August 15, 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-932 ER N811DZ (msn 31916) arrives at Los Angeles International Airport (LAX).

Delta Air Lines (current livery) Aircraft Slide Show:

United Airlines reports its highest-ever quarterly profit of $1.1 billion

United Airlines (Chicago) today reported third quarter 2014 net income of $1.1 billion, or $2.75 per diluted share, excluding $151 million of special items, its highest-ever quarterly profit and an increase of 99 percent year-over-year. Including special items, UAL reported third-quarter 2014 net income of $924 million, or $2.37 per diluted share.

United’s consolidated passenger revenue per available seat mile (PRASM) increased 3.9 percent in the third quarter of 2014 compared to the third quarter of 2013.

Third-quarter 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.0 percent year-over-year on a consolidated capacity increase of 0.5 percent. Third-quarter 2014 CASM, including those items, decreased 4.0 percent year-over-year.

UAL ended the third quarter with $6.9 billion in unrestricted liquidity.

The company earned a 12.3 percent return on invested capital for the 12 months ended Sept. 30, 2014.

United returned $220 million to shareholders as part of its previously announced $1 billion share buyback program.

“Our third-quarter results demonstrate continued progress, and I want to thank our employees for their contributions to our success,” said Jeff Smisek, UAL’s chairman, president and chief executive officer. “We still have significant opportunity ahead to grow our margins and improve the quality and efficiency of everything we do.”

Third-Quarter Revenue and Capacity

For the third quarter of 2014, total revenue was $10.6 billion, an increase of 3.3 percent year-over-year. Third-quarter consolidated passenger revenue increased 4.4 percent to $9.3 billion, compared to the same period in 2013. Ancillary revenue per passenger in the third quarter increased 10.9 percent year-over-year to more than $22 per passenger. Third-quarter cargo revenue grew 19.1 percent to $237 million driven by higher volumes year-over-year, as cargo traffic returned following lower bookings during the implementation of the company’s new cargo systems in the third quarter of 2013. Other revenue decreased 8.9 percent year-over-year to $1.0 billion mostly due to the company choosing to discontinue an agreement to sell fuel to a third party. The corresponding expense decline appears in third-party business expense.

Consolidated revenue passenger miles increased 0.4 percent and consolidated available seat miles increased 0.5 percent year-over-year for the third quarter, resulting in a third-quarter consolidated load factor of 85.8 percent.

Third-quarter 2014 consolidated PRASM increased 3.9 percent and consolidated yield increased 4.1 percent compared to the third quarter of 2013.

Third-Quarter Costs

Third-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, increased 1.0 percent compared to the third quarter of 2013. Third-quarter consolidated CASM including those items decreased 4.0 percent.

Third-quarter total operating expenses, excluding special charges, decreased $180 million, or 1.9 percent, year-over-year. Including special charges, total operating expenses decreased $348 million, or 3.6 percent, in the third quarter versus the same period in 2013. Third-party business expense was $61 million in the third quarter of 2014.

Third-Quarter Liquidity and Cash Flow

UAL ended the third quarter with $6.9 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. The company generated $574 million of operating cash flow in the third quarter. During the third quarter, the company had gross capital expenditures of $493 million, excluding fully reimbursable projects. The company made debt and capital lease principal payments of $1.1 billion in the third quarter, including the redemption of the entire $800 million of its 6.75 percent secured notes due 2015. The company also issued an additional $500 million tranche of term loan debt in the quarter.

The company’s long-term capital structure goals include reducing its non-aircraft related debt and achieving a total gross debt balance, including capitalized operating leases, of approximately $15 billion while maintaining an unrestricted liquidity balance of $5 billion to $6 billion, including its undrawn revolver.

As part of United’s $1 billion share buyback program, United returned $220 million to shareholders during the third quarter.

For the 12 months ended Sept. 30, 2014, the company’s return on invested capital was 12.3 percent.

Third-Quarter 2014 Accomplishments

Operations, Employees and Network

United Airlines reported a third-quarter mainline on-time arrival rate (domestic and international) of 77.6 percent, which was adversely affected by a runway closure at its San Francisco hub and the Sept. 26 sabotage and fire at the air traffic control center in Aurora, Illinois. The on-time arrival rate is based on flights arriving within 14 minutes of scheduled arrival time.

United and the Association of Flight Attendants announced that United will offer its flight attendants an enhanced early out program, which allows participants a one-time opportunity to voluntarily separate from the company and receive a severance payment. United also announced that it is recalling all flight attendants who are on voluntary and involuntary furlough.

During the quarter, United announced five new international routes including Guam to Seoul, South Korea, and Shanghai; Houston to Punta Cana, Dominican Republic; and Newark to London, Ontario, Canada. The company also launched new domestic service from Denver to Lafayette, Louisiana, and Hays, Kansas, and from Houston to Boise, Idaho, and Williston, North Dakota, along with seasonal service from Denver to Sun Valley, Idaho. Additionally, the airline announced new service from Newark to South Bend, Indiana, and seasonal service from Newark to Sarasota, Florida, and San Francisco to Montrose, Colorado.

Fleet and Finance

United became the first North American carrier to take delivery of the Boeing 787-9, a stretched version of the Dreamliner that will allow the airline to accommodate more customers and further capitalize on its worldwide route network. The aircraft is the first of 26 787-9s that United has on order. The company also took delivery of four Boeing 737-900 ER aircraft and four Embraer 175 aircraft during the third quarter.

The company announced that it will add 50 new Embraer 175 aircraft to the United Express fleet. United anticipates deliveries will begin in July 2015 and continue through the summer of 2017. The new aircraft will replace large turboprop aircraft and older, less-efficient aircraft, and are in addition to the 70 new E175s previously announced, bringing the total of new E175s to 120.

United sent notice of redemption of the entire $248 million of its 6.0 percent preferred securities due 2030, which were subsequently retired on Oct. 10, 2014.

The company redeemed the entire $800 million of its 6.75 percent secured notes and simultaneously closed on a transaction to increase the size of its undrawn revolving credit facility by $350 million to a total of $1.35 billion, and issued an additional $500 million tranche of term loan debt.

Flyer-Friendly Product

United continued to install onboard Wi-Fi at a rapid rate, with more than 330 mainline aircraft outfitted with Wi-Fi at the end of the third quarter, including all Boeing 747 and Airbus A319 and A320 aircraft. By the end of the year, the company will have Wi-Fi on two thirds of its mainline fleet and will have begun installation on its two-cabin regional fleet.

The company offered personal device entertainment on more than 180 mainline aircraft – including all Boeing 747s, its Airbus fleet and nine Boeing 777s. Personal device entertainment allows passengers to stream videos and TV shows directly to their own devices inflight.
United launched mobile app passport scanning, becoming the first U.S. airline to offer customers the ability to scan their passports on iOS and Android mobile devices to check in for international flights.

United announced significant upgrades to inflight food service, including this summer’s introduction of new, fresh salads and sandwiches for premium-cabin customers on North America flights. Next year, the company will introduce completely redesigned menu concepts and the expansion of premium-cabin meals within North America, upgraded premium-cabin meal service on United Express flights with freshly prepared food, and significantly enhanced United Economy meals and beverages on long-haul international flights.

United continued installing slimmer, next-generation economy-class seats on certain aircraft, which enables one to two additional rows per aircraft. The airline now offers these seats, which are 10 to 15 percent lighter than the seats they are replacing, on approximately 270 aircraft and expects approximately 350 aircraft to be completed by the end of the year.

United launched Mercedes-Benz tarmac-transportation service in Denver, which is now available for Global Services members and United Global First customers at all of the airline’s mainland U.S. hubs.

The company became the first airline to offer customers Uber transportation services, now available through the United app.

Copyright Photo: Ken Petersen/Airlinersgallery.com. United has been adding new Boeing 737-900 ERs. Boeing 737-924 ER N37466 (msn 31644) arrives at Las Vegas.

United Airlines (current livery):

Alaska Airlines orders 10 additional Boeing 737-900 ERs, launches a “Test Drive a 737” contest, will retire its last Boeing 737-400 by the end of 2017

Alaska Airlines (Seattle/Tacoma) has announced the purchase of 10 additional Boeing 737-900 ER aircraft. The company is celebrating the significance of this order by launching a contest to ‘test-drive’ one of Alaska’s 737 flight simulators at its Seattle flight operations center.

Today’s purchase, which brings Alaska’s total Boeing jets on order to 74, means customers will enjoy expanded service from Alaska’s Seattle hub and a commitment to a locally-manufactured fleet.

These new planes will not only allow for network growth, but also further enhance the company’s already industry-leading fuel efficiency by replacing less efficient 737-400 aircraft with new 737-900ER, capable of carrying 25 percent more passengers while using the same amount of fuel.

Alaska Airlines is the most fuel efficient U.S. carrier for the last three years, according to The International Council on Clean Transportation. The 737-900 ERs, along with other efficiency measures, will help Alaska further its lead by improving mileage from 66 seat MPG in 2006 to 84 seat MPG in 2017.

Plane facts:

Alaska is in the process of transitioning out of its 737-400s, which will be finished by the end of 2017.

Alaska was the first airline in the world to order both the MAX-8 and MAX-9 and will take delivery of the aircraft starting in 2017.

By 2017 Alaska’s fleet will be nearly 30 percent larger than it was in 2010.

Alaska offers 273 peak-day departures to 79 destinations from Seattle/Tacoma, more than three times that of any other airline.

Alaska launches Seattle-area scavenger hunt

Beginning at 6 a.m. this Friday, October 10, Washington state residents will have the chance to find one of five sets of keys to test drive a Boeing 737. Follow Alaska Airlines’ “Keys to the Sky” scavenger hunt on Facebook, Instagram or Twitter for clues leading to five Seattle-area locations. The first person to arrive at each location and reference the hashtag #SeattlesAirline will win a grand prize, which includes two round-trip tickets anywhere Alaska flies from Seattle/Tacoma and keys to one of the company’s flight simulators, good for a ride with an Alaska instructor pilot. The runner up at each location will be invited to take a ride on a delivery flight aboard one of Alaska’s new Boeing 737-900 ERs next year.

For more information: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-990 ER N419AS (msn 41734) taxies to the runway at the Seattle-Tacoma International Airport (SEA) hub.

Alaska Airlines:

Video: Alaska orders 10 more Boeing 737s:

United ends July with its best on-time performance in four years, rewards employees with a cash bonus

United Airlines (Chicago) has announced that it is rewarding all eligible employees with a cash bonus for exceeding the airline’s on-time arrival and departure performance goals for the month of July. United’s goal for on-time performance is to be first or second among the largest four U.S. carriers. The on-time arrival rate is based on flights arriving within 14 minutes of the scheduled arrival time. Eligible employees also earned an additional cash bonus for exceeding United’s customer satisfaction goal for July, resulting in a total payout of $125 per eligible employee for the month.

Despite challenges across the system and runway construction at San Francisco – one of the airline’s largest hubs – United ended July with its best July on-time performance in four years. The performance was an improvement over the same month last year as well as June of this year. United’s mainline and United Express D :00 were also better than target and better than last year’s performance.

“While we still have room for improvement, we’re seeing a lot of momentum as we work to create a more reliable and efficient airline,” said Greg Hart, United’s executive vice president and chief operations officer. “These bonuses are further proof that the actions we are taking are paying off.”

Five of United’s seven hubs had the best July A :14 performance since 2010, with the airline’s Los Angeles hub leading the pack. United also placed first or second of the four largest U.S. carriers in A :14 for 13 of the last 18 days of the month.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-924 ER N37422 (msn 31620) climbs away from the Los Angeles station.

United Airlines (current):