Tag Archives: 74787UF

British Airways to return three GSS Boeing 747-8 freighters to Atlas Air Worldwide Holdings in April

Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York) has announced it intends to pursue new ACMI (aircraft, crew, maintenance and insurance) placement opportunities for three 747-8 Freighter aircraft currently operated for British Airways plc by Atlas Air Worldwide’s 49%-owned UK subsidiary, Global Supply Systems Limited (GSS).

The action follows notice from British Airways, a unit of International Consolidated Airlines Group, S.A., regarding British Airways’ strategic decision to exit dedicated cargo-freighter service and to return the aircraft to GSS in April 2014 pursuant to the terms of the existing ACMI agreement between the parties.

Effective with the termination of the agreement, the three 747-8Fs will be redelivered to the company by GSS. Through GSS, the company also will receive contractual early termination fees from British Airways.

Meanwhile Qatar Airways (Doha) will operate five Boeing 777F freighter flights between Hong Kong and London for IAG Cargo (British Airways) starting on May 1. IAG Cargo issued this statement:

IAG Cargo has announced it has signed a long-term commercial agreement with Qatar Airways to purchase capacity on Qatar Airways-operated air cargo freighters, effective from May 1, 2014.

Qatar Airways will operate five Boeing 777F flights a week between Hong Kong and London on behalf of IAG Cargo, providing continuity of service for IAG Cargo customers.

The agreement marks a transition for IAG Cargo and follows the company’s decision to transfer freighter operations from its current provider, Global Supply Systems.

IAG Cargo connects 350 destinations worldwide, serving the world’s economic hubs with cargo-friendly wide-bodied planes. Through its Constant Climate network, it has one of the largest networks globally for handling temperature-sensitive air cargo.

Qatar Airways is already a partner with IAG through the oneworld global alliance which it joined in October 2013. The airline is taking delivery of a further three Boeing 777F aircraft during 2014.

Top Copyright Photo: Rainer Bexten/AirlinersGallery.com. This decision will end British Airways World Cargo and Global Supply Systems. GSS operated Boeing 747-87UF G-GSSD (msn 37562) in British Airways World Cargo colors departs graceful from Cologne/Bonn.

British Airways World Cargo (GSS): AG Slide Show

Qatar Airways: AG Slide Show

Video: Flying the Boeing 747-800F freighter:

Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 777-FDZ A7-BFA (msn 36098) of Qatar Airways Cargo taxies at Amsterdam.

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Atlas Air starts operating a Boeing 747-800F freighter for Etihad Cargo, Miami becomes part of the round-the-world cargo route

Atlas Air (New York) on May 30 started operating its newest Boeing 747-800F for Etihad Cargo (formerly Etihad Crystal Cargo) (Etihad Airways) (Abu Dhabi). The fully-painted freighter will operate twice-weekly cargo services to and from Miami.

Etihad Airways announced its new round-the-world cargo flight:

The jointly operated routing began on May 30, connecting Etihad Cargo’s Abu Dhabi hub with destinations in Asia, the United States, South America and Europe.

Miami (US), Viracopos (Brazil), and Quito (Ecuador) will become part the round-the-world Abu Dhabi-Hong Kong-Chicago O’Hare-Miami-Viracopos-Quito-Amsterdam-Abu Dhabi freighter service offered with an Etihad Cargo-liveried Boeing 747-8F Freighter.

Earlier this month, Etihad Cargo signed a signed a multi-year Aircraft, Crew, Maintenance and Insurance (ACMI) agreement with Atlas Air to provide the Boeing 747-8F Freighter with its 138-ton cargo capacity to operate the new schedule.

The three new freighter destinations in the Americas will see Etihad Cargo’s network extend to 92 points across the globe. The carrier’s eight freighters operate to 28 of these destinations.

The Boeing 747-8F Freighter is the largest in Etihad Cargo’s current freighter fleet. The airline also operates three Boeing 777Fs, one Boeing 747-400ERF, one Boeing 747-400F and two Airbus A330-200Fs.

Etihad Cargo will take delivery of two additional freighters in 2013 and 2014, comprising two Airbus A330-200Fs.

Atlas Air previously made this announcement in May:

The 8th Boeing 747-800F freighter will fly on behalf of Etihad Cargo, the cargo arm of Etihad Airways, the national carrier of the United Arab Emirates, pursuant to a multi-year aircraft, crew, maintenance and insurance agreement that commences in May 2013.

The new contract between the companies follows a letter of intent announced on April 1, 2013, and complements an existing Boeing 747-400F ACMI arrangement between Atlas and Etihad. The aircraft will be operated in full Etihad Cargo livery.

Copyright Photo: Michael Bolden. The pictured Boeing 747-87UF N855GT (msn 37567) was delivered to Atlas Air on May 18, 2013. The Jumbo Freighter prepares to depart from Miami on its twice-weekly round-the-world cargo route.

Atlas Air: AG Slide Show

Etihad Airways: AG Slide Show

 

Atlas Air Worldwide Holdings reports 1Q net income of $5.9 million

Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York-JFK) today announced adjusted net income attributable to common stockholders of $5.9 million, or $0.22 per diluted share for the first quarter of 2013 compared with adjusted earnings of $13.6 million, or $0.51 per diluted share, for the first quarter of 2012.

On a reported basis, net income attributable to common stockholders in the first quarter totaled $20.1 million, or $0.76 per diluted share, compared with $12.8 million, or $0.48 per diluted share in the year-ago quarter.

Adjusted earnings in the first quarter of 2013 exclude an income tax benefit of $14.2 million, or $0.54 per diluted share, related to the tax treatment of extraterritorial income from the offshore leasing of certain aircraft. Adjusted earnings in the first quarter of 2012 exclude fleet retirement costs of $0.9 million, or $0.03 per diluted share.

First-quarter revenue grew 5% to $377.3 million, with operating income increasing 10% to $22.6 million and operating margin expanding slightly. Free cash flow for the period totaled $42.4 million compared with $1.0 million in the first quarter of 2012.

“Our first-quarter results and initiatives demonstrate the benefits of a modern, efficient fleet, diversified business mix and solid balance sheet in a challenging business environment,” said William J. Flynn, President and Chief Executive Officer.

“Operating income during the quarter reflected the strength of our ACMI operations, especially our new 747-8 freighters. It also gained from new organizational capabilities and the evolution of our business, such as our expanding 767 service and growing CMI operations. We also realized operating efficiencies through our continuous improvement initiatives.

“Capitalizing on our financial strength, we acquired an immediately profitable 777 freighter under long-term customer lease for our Dry Leasing business. We also implemented an immediately accretive share repurchase program that acquired 3.4% of our outstanding stock for a total of $36.5 million through late April.

“Earnings in the first quarter were in line with our expectations and our outlook for the year. As a result, we are affirming previous guidance for 2013 but we are raising our expected adjusted earnings per share to $4.80 from $4.65 to reflect our actual and anticipated share repurchases.”

First-Quarter Results

Revenue, volume and profitability growth in our core ACMI business during the first quarter were driven by our new 747-8Fs, with four additional -8F aircraft in service compared with the first quarter of 2012, as well as the continued ramp up of CMI flying for Boeing and DHL Express.

Improved ACMI segment earnings during the period also benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments.

In AMC Charter, strong growth in passenger service volumes partially offset a 41% reduction in cargo block hours, a reduction in the number of one-way AMC missions, and lower average cargo revenue per block hour, which led to a decline in segment contribution. Lower average passenger revenue per block hour during the period stemmed from an increase in flying on smaller-gauge 767 aircraft added to supplement our wide-body 747-400 passenger service and enhance our share of military passenger business.

Segment results in Commercial Charter reflected the seasonal nature of this business and were primarily related to a reduction in yields driven by soft first-quarter global charter-market conditions.

Results in the first quarter were also affected by higher non-operating expenses, primarily due to a reduction in capitalized interest on 747-8F aircraft that entered service.

Income Taxes

Reported earnings for the first quarter of 2013 included an effective income tax rate benefit of 97.4%, reflecting a federal income tax benefit of $14.2 million related to the tax treatment of extraterritorial income from the offshore leasing of certain of our aircraft.

Cash, Cash Equivalents and Short-Term Investments

At March 31, 2013, our cash, cash equivalents and short-term investments totaled $343.9 million, compared with $419.9 million at December 31, 2012.

The change in cash, cash equivalents and short-term investments was primarily driven by an increase in cash provided by operating and financing activities, offset by cash used for investing activities.

Net cash used for investing activities in the first quarter of 2013 primarily related to the purchase of a 747-8F aircraft for our ACMI operations and a 777-200 LRF aircraft for our Dry Leasing business.

Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. These proceeds were partially offset by payments on debt obligations and a prepayment under an accelerated share repurchase program agreement (“ASR”).

Share Repurchase Activity

Between mid-February and late April 2013, we repurchased 903,301 shares of our common stock for $36.5 million at an average cost of $40.40 per share. The shares were acquired pursuant to an ASR with an investment bank that settled on April 25, 2013.

We acquired 427,168 of these shares during the period ended March 31, 2013, which added $0.01 per diluted share to our adjusted and reported earnings for the first quarter.

Future repurchases may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.

Outlook

We expect to generate strong earnings and cash flow in 2013. Led by ACMI, each of our business segments is expected to be profitable for the year.

Incorporating our share repurchase activity, we anticipate that our adjusted fully diluted earnings per share this year will total approximately $4.80, an increase from prior guidance of approximately $4.65. Including the extraterritorial income tax benefit of $0.54 per share, our reported fully diluted earnings per share in 2013 should be approximately $5.34.

Both adjusted and reported full-year 2013 EPS guidance assume the repurchase of $50.0 million of our outstanding stock during the year.

Our expectation for full year 2013 operating performance is unchanged from the outlook we issued last quarter. We now expect to fly fewer block hours in our Commercial Charter segment in 2013 than we previously forecast. We also expect lower operating expenses as a result of continuous improvement initiatives that drive productivity improvements and operating efficiencies. These initiatives target all aspects of our business, including engine overhauls, procurement efforts, passenger catering, ground travel, and crew scheduling.

Similar to the first quarter, adjusted and reported full-year earnings in 2013 will reflect strong growth from the company’s 747-8Fs in ACMI, driven by an increase in the number of -8F aircraft in ACMI service compared with 2012, including the incremental placement with Etihad Airways we announced today.

Market growth during 2013 should be seasonal and second-half weighted. We continue to anticipate a sequential increase in our quarterly earnings throughout the year, with approximately 75% of adjusted earnings per share and 66% of reported earnings per share occurring in the second half.

Based on our revised view, block-hour volumes in 2013 are now expected to total approximately 175,000 hours. ACMI segment flying should account for about 135,000, or 77%, of expected 2013 block hours, with about 22,000, or 13%, in Commercial Charter and 18,000, or 10%, in AMC Charter. Passenger charter flying should account for more than 10,000 AMC Charter block hours in 2013.

Based on anticipated deliveries of 747-8Fs in our outstanding order, the average number of -8Fs in service in 2013 should increase to more than eight from 4.3 in 2012.

In addition, we now anticipate that maintenance expense will total approximately $172 million in 2013, about 60% of which should be incurred in the first half of the year.

Mr. Flynn concluded: “In an environment of continuing global uncertainty, we are well-positioned to serve our customers and the airfreight markets. We have performed well. We are ready to capitalize on market improvements. And we are executing a strategic plan that leverages our core competencies, provides a basis for returning capital to our investors through share repurchases, and will enable us to grow over the long term.”

In other news, Atlas Air has confirmed the placement of its eighth Boeing 747-8 Freighter into ACMI service.

The aircraft will fly on behalf of Etihad Cargo, the cargo arm of Etihad Airways, the national carrier of the United Arab Emirates, pursuant to a multi-year aircraft, crew, maintenance and insurance agreement that commences in May 2013.

The new contract between the companies follows a letter of intent announced on April 1, 2013, and complements an existing Boeing 747-400F ACMI arrangement between Atlas and Etihad. The aircraft will be operated in full Etihad Cargo livery.

Copyright Photo: Pedro Pics. Atlas Air operates this Boeing 747-87UF N850GT (msn 37570) for Panalpina Air and Ocean in their colors.

Atlas Air: AG Slide Show

Panalpina: AG Slide Show

Atlas Air takes delivery of its eighth Boeing 747-800F freighter

Atlas Air (New York) has taken delivery of its eighth Boeing 747-8F Freighter.

Pursuant to a letter of intent (LOI) with an undisclosed customer, the new aircraft is expected to enter ACMI (Aircraft, Crew, Maintenance and Insurance) service during the first half of the second quarter of 2013, which will allow the customer time to integrate the capacity into its scheduled network.

Prior to beginning in ACMI, the aircraft will be operated in short-term, revenue-generating service.

Atlas Air expects to receive one additional 747-8F by the end of the second quarter of 2013, completing the delivery of its order program for nine aircraft.

Copyright Photo: Nick Dean. Boeing 747-87UF N854FT (msn 37566) was handed over in the full Atlas Air livery on April 1. N854FT climbs away from Paine Field near Everett.

Atlas Air: AG Slide Show

Atlas Air issues a statement concerning its General Electric GEnc-2B engines

Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York) today issued the following statement in response to inquiries about the General Electric GEnx-2B engines serving the company’s Boeing 747-8 Freighter fleet:

“Atlas Air Worldwide’s industry leadership and our operations are based on a deep commitment to and a track record of safety, compliance and security.

Reflecting our commitment and track record, we have worked closely and continually with General Electric regarding the GEnx-2B engines serving our new Boeing 747-8 Freighters, five of which are currently in service and four of which remain to be delivered to us.

In conjunction with GE, we established a plan to inspect each of the engines serving our existing 747-8s and will work with GE to inspect the engines that will power our remaining 747-8 deliveries.

To date, the inspections have not uncovered any issues with our engines and have not resulted in any loss of flying time by our 747-8 Freighters.

We have also worked with GE to establish a plan to re-inspect each of our GEnx-2B engines at appropriate intervals.

Future periodic inspections of our GEnx engines are planned to be carried out during regularly scheduled maintenance checks on our 747-8 aircraft.

As a result, we do not expect re-inspections of our GEnx engines to disrupt our ability to continue to provide safe, value-added 747-8F service to our customers.

As always, reflecting our commitment to and our track record of safety, compliance and security leadership, we will fully comply with any and all directives issued by the Federal Aviation Administration and other regulators with respect to the operation of our aircraft.”

Copyright Photo: Nick Dean. The first new Boeing 747-800F freighter in full Atlas Air colors is seen at Paine Field near Everett, WA. 747-87UF (msn 37571) prepares to depart from PAE and will be delivered later this month.

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Atlas Air: 

 

Atlas Air takes delivery of the second new Boeing 747-800F Freighter for Panalpina

Atlas Air (New York) has taken delivery of a fifth Boeing 747-8F Freighter.

The pictured 747-87UF N851GT (msn 37565) departing from Everett (Paine Field) is the second aircraft of the type to be placed into service for Panalpina under a previously announced multi-year aircraft, crew, maintenance and insurance (ACMI) outsourcing contract.

The newest freighter will offer Panalpina, a Swiss-based global freight forwarding and logistics services provider, additional next-generation performance in payload, fuel efficiency, total cost per tonne-mile, and environmental compliance.

Atlas Air expects to receive two additional 747-8Fs in 2012 and two in the first half of 2013 for a total of nine. As previously announced, Atlas has received a commitment from Apple Bank for Savings to finance the remaining deliveries, subject to customary conditions.

The acquisition of this latest 747-8F was financed in part with proceeds from a term loan and was subsequently refinanced by the issuance of $142.7 million of 12-year, secured bonds. These bonds, which are guaranteed by the Export-Import Bank of the United States, have been priced at 1.73% and are scheduled to close on July 31, 2012. BNP Paribas and KGS Alpha Capital Markets are acting as joint lead bookrunners.

Copyright Photo: Nick Dean.

Atlas Air: 

Panalpina sells its 12% share of Luxair

Panalpina (Basel) has sold its 12.09 percent share of Luxair-Luxembourg Airlines (Luxembourg). The government of Luxembourg purchased the shares in June according to this report by Handelszeitung.

Read the full report (in German): CLICK HERE

Top Copyright Photo: Royal S. King. Swiss freight forwarder Panalpina has a close relationship with Atlas Air. Atlas Air operates this new Boeing 747-87UF N851GT for Panalpina.

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Luxair-Luxembourg Airlines: 

Bottom Copyright Photo: Bernardo Andrade. Embraer ERJ 145LU (EMB-145LU) LX-LGX (msn 145147) of Luxair arrives at Barcelona.