Tag Archives: 757204

Allegiant to move to Concourse A at Las Vegas’ McCarran International Airport

Allegiant Air (Las Vegas) will move its Las Vegas operation today from Concourse D to Concourse A. This area was previously vacated by US Airways.

Read the full story from Las Vegas Review-Journal: CLICK HERE

Copyright Photo: Tony Storck/AirlinersGallery.com. Allegiant Air’s Boeing 757-204 N902NV (msn 26964) climbs over the Strip at Las Vegas.

Allegiant: AG Slide Show

FAA Airport Map for LAS:

LAS Airport Map (FAA)

Allegiant Air to fly between Los Angeles and Honolulu, starting at $99 OW

Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Los Angeles and Honolulu beginning on October 30, 2013.

In March 2010, the company announced it signed a forward purchase agreement to acquire six Boeing 757-200 aircraft that enabled Allegiant to expand its leisure travel strategy into Hawaii with flights beginning in summer 2012.

Allegiant currently operates a fleet of 57 McDonnell Douglas DC-9-80 (MD-80) aircraft, six Boeing 757-200 aircraft, and one Airbus A319 aircraft. The Company has agreements to acquire eight additional Airbus A319 aircraft and nine Airbus A320 aircraft, which will be introduced throughout 2013 and the beginning of 2014.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 757-204 N906NV (msn 27236) lands at the Las Vegas home base.

Allegiant Air: AG Slide Show

FedEx Corporation reports net income of $679 million in the fiscal 4Q and $1.98 billion for the year

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $2.13 per diluted share for the fourth quarter ended May 31. This excludes a $0.98 per diluted share business realignment program charge and a previously announced $0.20 per diluted share noncash aircraft impairment charge at FedEx Express. Including these charges, fourth quarter earnings were $0.95 per diluted share.

Last year’s fourth quarter earnings were $1.99 per diluted share, excluding a $0.26 per diluted share noncash aircraft impairment charge at FedEx Express. Including last year’s charge, earnings were $1.73 per diluted share.

“FedEx Ground posted another strong year and FedEx Freight margins continued to improve,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “These positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services. FedEx Express results improved in the fourth quarter, and while near-term challenges remain, we are confident we are positioning FedEx for profitable, long-term growth.”

Fourth Quarter Results

FedEx Corp. reported the following consolidated results for the fourth quarter:

Fiscal 2013 Fiscal 2012

Adjusted
(non-GAAP)

As Reported
(GAAP)

Adjusted
(non-GAAP)

As Reported
(GAAP)

Revenue

$11.4 billion

$11.4 billion

$11.0 billion

$11.0 billion

Operating Income

$1.10 billion

$502 million

$990 million

$856 million

Operating Margin

9.6%

4.4%

9.0%

7.8%

Net Income

$679 million

$303 million

$634 million

$550 million

Diluted EPS

$2.13

$0.95

$1.99

$1.73

As announced on June 3, during the quarter FedEx Express permanently retired 10 aircraft and related engines. As a consequence, a noncash impairment charge of $100 million ($63 million, net of tax, or $0.20 per diluted share) was recorded in the fourth quarter.

Excluding business realignment program costs and aircraft impairment charges from this year and aircraft impairment charges from last year, “adjusted” operating results improved due to continued strong FedEx Ground performance and better FedEx Express performance.

Full Year Results

FedEx Corp. reported the following consolidated results for the full year:

Fiscal 2013 Fiscal 2012

Adjusted
(non-GAAP)

As Reported
(GAAP)

Adjusted
(non-GAAP)

As Reported
(GAAP)

Revenue

$44.3 billion

$44.3 billion

$42.7 billion

$42.7 billion

Operating Income

$3.21 billion

$2.55 billion

$3.28 billion

$3.19 billion

Operating Margin

7.3%

5.8%

7.7%

7.5%

Net Income

$1.98 billion

$1.56 billion

$2.09 billion

$2.03 billion

Diluted EPS

$6.23

$4.91

$6.59

$6.41

Capital spending for fiscal 2013 was $3.4 billion, down from $4.0 billion in fiscal 2012.

Business Realignment Program Update

In October, the company announced profit improvement programs, which include a voluntary employee separation program. The program was completed during the fourth quarter, and approximately 3,600 employees will be voluntarily leaving the company in phases to ensure a smooth transition. Approximately 40% of the employees vacated their positions on May 31, 2013 in the first phase. Approximately 25% of the employees will vacate their positions in the final phase at the end of fiscal 2014.

The company incurred costs of $496 million ($313 million, net of tax, or $0.98 per diluted share) during the fourth quarter and $560 million ($353 million, net of tax, or $1.11 per diluted share) during fiscal 2013, associated with the business realignment activities. The cost of the voluntary employee separation program is included in the “Business realignment, impairment and other charges” line of the company’s statements of income. Business realignment program costs at FedEx Services have been allocated to the operating segments through the “Intercompany charges” line of each segment’s statement of income.

Outlook

FedEx is revising its earnings guidance practices to focus on full fiscal year projections with quarterly updates. For fiscal 2014, the company projects earnings per share growth of 7% to 13% from fiscal 2013 adjusted results. This assumes the current market outlook for fuel prices, U.S. GDP growth of 2.3% and world GDP growth of 2.7%. Capital spending for fiscal 2014 is expected to be approximately $4 billion.

“We remain focused on improving margins and returns in all of our businesses. The pace of that improvement is expected to be moderate in fiscal 2014 and then accelerate in fiscal 2015,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Our profit improvement program is progressing, but we continue to see the effects of customers selecting lower-rate international services. FedEx Express will further decrease capacity between Asia and the United States in July.”

FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported:

  • Revenue of $6.98 billion, up 3% from last year’s $6.80 billion
  • Adjusted operating income of $460 million, up 11% from $415 million a year ago. Including charges, operating income of $0, down from $281 million last year.
  • Adjusted operating margin of 6.6%, up from 6.1% the previous year. Including charges, operating margin of 0.0%, down from 4.1% last year.

Adjusted operating income and margin improved despite the demand shift toward lower yielding international services, as the net impact of the fuel surcharge timing lag, capacity reductions and other cost reduction activities benefited the quarter’s results. Direct and intercompany costs associated with the business realignment programs and the aircraft impairment charge impacted operating income and margin by $460 million and 6.6 percentage points, respectively. Last year’s results included a $134 million aircraft impairment charge.

Revenue increased due to this year’s business acquisitions and growth at FedEx Trade Networks. U.S. domestic average daily package volume increased 2% and U.S. domestic revenue per package increased 1%, as higher rate per pound and weight per package were offset by lower fuel surcharges. FedEx International Economy volume grew 11%, while FedEx International Priority volume decreased 2% during the quarter. International export revenue per package fell 2% due primarily to lower rates.

FedEx Express is pleased to have been selected as the sole awardee of the recent U.S. Postal Service air cargo solicitation, representing the majority of the USPS’s air line-haul traffic. This new seven year agreement, valued at approximately $10.5 billion, begins on October 1, 2013. The agreement provides reduced rates for the USPS versus the prior FedEx Express agreement and offers the opportunity for incremental revenue.

In other news, FedEx Corporation also announced that it has completed the first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd. in five countries in Southern Africa, including South Africa, Malawi, Mozambique, Swaziland and Zambia, and is also in discussions to acquire Supaswift’s businesses in Botswana and Namibia. These acquisitions will operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions.

Once the acquisition is completed, FedEx Express will have direct access across the seven markets to 39 facilities and will welcome approximately 1,000 of Supaswift’s team members, who will join the ranks of more than 300,000 FedEx team members globally. FedEx Express will then offer a complete suite of FedEx branded export, import and domestic solutions, connecting Southern Africa to more than 220 countries and territories worldwide, enhancing customers’ business flexibility and speed to market.

Copyright Photo: Ken Petersen/AirlinersGallery.com. FedEx has been building up a large Boeing 757 fleet to replace its older Boeing 727s. Formerly operated by Britannia Airways/Thomsonfly/Thomson Airways as G-BYAS, 757-204 (F) N925FD (msn 27238) departs from the Memphis sorting hub.

FedEx Express: AG Slide Show

Newsworthy Photo of the Day – June 2, 2013

Sunday Airlines (SCAT Air Company) Boeing 757-204 LY-FLG (msn 27237) AYT (Rainer Bexten). Image: 912366.

Copyright Photo: Rainer Bexten/AirlinersGallery.com. Please click on the photo for additional information and the full-size view.

Hot New Photos: AG Hot New Photos

Allegiant to seasonally halt Hawaii service from seven cities

Allegiant Air (Las Vegas) plans to temporarily suspend service to Hawaii from seven of the nine mainland cities after the summer season.

Allegiant will suspend flights beginning on August 14 from Boise, Idaho; Eugene, Oregon; Phoenix; Spokane, Washington; and Fresno, Stockton and Santa Maria, all in California according to this report by the Star Advertiser.

The company has recently been struggling with some well-publicized Hawaii cancellations due to mechanical issues affecting its Boeing 757-200 fleet.

Read the full report: CLICK HERE

Copyright Photo: Ton Jochems. Boeing 757-204 N901NV (msn 26963) touches down at the Las Vegas base after arriving from Hawaii.

Allegiant: AG Slide Show

Allegiant to start Mesa (Phoenix)-Honolulu service and two new routes to Palm Springs

Allegiant Air (Las Vegas) will begin new, nonstop air service from Mesa (near Phoenix, Arizona) to Honolulu International Airport (HNL) beginning on February 7, 2013.

The new flights will operate three times weekly between Phoenix-Mesa Gateway Airport (IWA) and Honolulu International Airport (HNL).

In addition, the company will begin new, nonstop air service from Eugene, Oregon and Oakland to Palm Springs starting on November 15.

Copyright Photo: Eddie Maloney. Boeing 757-204 N902NV arrives at Las Vegas.

Allegiant Slide Show: 

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Allegiant to fly to Honolulu from both Boise and Spokane

Allegiant Air (Las Vegas) announced today it will offer new nonstop flights from Honolulu International Airport (HNL) to both Boise, Idaho (starting on February 9) and Spokane (starting on February 8).

The new Routes will be operated with Boeing 757-200s.

Copyright Photo: Eddie Maloney. Boeing 757-204 N902NV (msn 26964) is pictured at the Las Vegas hub.

Allegiant: 

The Teamsters want to represent Allegiant’s pilots

Allegiant Air‘s (Las Vegas) pilots will soon have a choice whether they want to be represented by the Teamsters or continue to directly negotiate with the company.

The airline issued the following statement:

“Allegiant has received notification from the National Mediation Board (NMB) that International Brotherhood of Teamsters, Airline Division has filed an application for a representation election on behalf of Allegiant Air pilots. This will be the first time Allegiant pilots have voted on union representation.

“We strongly believe that Allegiant’s success is attributable in large part to our pilots and the direct, open relationship we have with them,” Maurice J. Gallagher, Jr., Allegiant CEO and Chairman, said. “We are committed to ensuring a fair election and we are confident Allegiant pilots will cast their votes based on the facts, and not rush to judgment based on IBT propaganda.”

Copyright Photo: Eddie Maloney. Formerly operated by Britannia Airways/Thomsonfly/Thomson Airways as G-BYAO, the pictured Boeing 757-204 at hot Las Vegas joined the Allegiant fleet as N905NV on March 15, 2012 in time to launch new low-fare flights to Hawaii.

Allegiant: 

Air Finland shuts down and files for bankruptcy protection

Air Finland (Helsinki) operated its last flight last night (June 26) and immediately filed for bankruptcy protection. The airline commenced operations on April 3, 2003. The closure has stranded around 1,000 passengers.

Read the full report from YLE – Uutiset: CLICK HERE

Copyright Photo: Ton Jochems. 

Air Finland: 

Allegiant receives ETOPS certification and Flag Carrier status from the FAA

Allegiant Air (Las Vegas) on June 12 obtained Extended-Range Operations (ETOPS) certification and Flag Carrier Status from the Federal Aviation Administration (FAA).

The company announced earlier this year its entrance into Hawaii. ETOPS certification and Flag Carrier status are both necessary for flying to Hawaii.

Allegiant will offer nonstop air service to Honolulu, Hawaii from:

Las Vegas — begins June 29

Fresno, California — begins June 30

Bellingham, Washington — begins November 15

Monterey, California — begins November 16

Eugene, Oregon — begins November 17

Santa Maria, California — begins November 17

Stockton, California — begins November 18

Allegiant will also offer nonstop air service to Maui, Hawaii from:

Bellingham, Washington — begins November 14

Allegiant will utilize 757-200 aircraft on its Hawaiian routes. The company operates four 757-200 aircraft and owns two additional, which are on lease to a European carrier. These aircraft are expected to be introduced into Allegiant’s fleet during the fourth quarter of 2012 and the first quarter of 2013.
Copyright Photo: Eddie Maloney.
Allegiant: