Tag Archives: 767300

American Airlines’ San Francisco-New York flight diverts to Kansas City because of a “suspicious” device

American Airlines (Dallas/Fort Worth) flight from San Francisco to New York (JFK) yesterday (January 5) diverted to Kansas City after a “suspicious device” was discovered in one of the lavatories. The Boeing 767-300 with 215 passengers and nine crew members diverted to Kansas City for a precautionary emergency landing. The object turned out to be an unattended flash drive taped to the wall of the lavatory.

Read the full report from Channel 7 News (Denver): CLICK HERE

Copyright Photo: American Airlines Boeing 767-323 ER N369AA (msn 25196)  taxies at Los Angeles.

American Airlines: AG Slide Show

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Delta Air Lines Boeing 767-332 N182DN returns to Madrid with a missing wing panel, runs off the side of the runway

Delta Air Lines (Atlanta) flight DL 415 departed Madrid (Barajas) bound for New York (JFK) yesterday (December 4) with the pictured Boeing 767-332 ER N182DN (msn 25987). The flight was involved in an incident. According to Aviation Safety Network, the crew elected to return to MAD after reporting it blew a tire on takeoff. Pictures taken from the plane show a missing wing panel on the top of the right wing.

On landing the aircraft veered to the left and ended up off the side of runway 18R-36L in the grass.

Read the full report with photos from Foroaviones.com: CLICK HERE

Copyright Photo: Richard Vandervord/AirlinersGallery.com. Boeing 767-332 ER N182DN (msn 25987) taxies at Milan (Malpensa).

Delta Air Lines: AG Slide Show

Alitalia refuses to work with Ryanair

Alitalia (2nd) (Rome) has flatly turned away Ryanair’s (Dublin) (please see the previous post) offer to feed Alitalia’s long range flights at its Rome Fiumicino hub. Ryanair has announced it will move many of its flights to its new Fiumicino base.

Alitalia issued this terse and short statement:

“Alitalia has its own strategy, an industrial plan, a fleet and its own crews that allow it to have the necessary passenger traffic to feed its international and intercontinental connections leaving from the hub at Fiumicino airport”.

Read the full report from Reuters: CLICK HERE

Copyright Photo: Ken Petersen/AirlinersGallery.com. Alitalia’s Boeing 767-343 ER EI-CRM (msn 30009) arrives from Rome (Fiumicino) at New York (JFK).

Alitalia (2nd): AG Slide Show

American and US Airways settle with the Department of Justice giving up 52 DCA slot pairs and 17 LGA slot pairs, paving the way towards a merger

AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc., (Dallas/Fort Worth) and US Airways Group, Inc. (US Airways) (Phoenix) today announced that the airlines have settled the litigation brought by the U.S. Department of Justice (DOJ), the States of Arizona, Florida, Michigan and Tennessee, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia challenging the merger of AMR and US Airways. The companies also announced an agreement with the U.S. Department of Transportation (DOT) related to small community service from Washington Reagan National Airport (DCA).

Tom Horton, chairman, president and CEO of AMR, and incoming chairman of the board of the combined company, said, “This is an important day for our customers, our people and our financial stakeholders. This agreement allows us to take the final steps in creating the new American Airlines. With a renewed spirit, we are about to create the world’s leading airline that will offer, along with our oneworld® partners, a comprehensive global network and service by the best people in the business. There is much more work ahead of us but we’re energized by the challenge and look forward to competing vigorously in the ever-changing global marketplace.”

Doug Parker, chairman and CEO of US Airways, and incoming CEO of the combined airline, said, “This is very good news and we are grateful to all who have made it happen. In particular, we are thankful to our employees, who throughout this process continued to believe in a better future as one airline and who voiced their support passionately and consistently. We also want to thank the elected officials in the states and communities we serve, the business leaders in our hub cities, and the thousands of customers who endorsed and supported this effort. Thank you as well to the U.S. Department of Justice, the state attorneys general and the U.S. Department of Transportation. We are pleased to have this lawsuit behind us and look forward to building the new American Airlines together.”

Under the terms of the settlement, the airlines will divest 52 slot pairs at Washington Reagan National Airport (DCA) and 17 slot pairs at New York LaGuardia Airport (LGA), as well as certain gates and related facilities to support service at those airports. The airlines also will divest two gates and related support facilities at each of Boston Logan International Airport, Chicago O’Hare International Airport, Dallas Love Field, Los Angeles International Airport, and Miami International Airport. The divestitures will occur through a DOJ approved process following the completion of the merger. Despite the divestitures, the new American is still expected to generate more than $1 billion in annual net synergies beginning in 2015, as was estimated when the merger was announced in February.

After completion of the required divestitures, the combined company expects to operate 44 fewer daily departures at DCA and 12 fewer daily departures at LGA than the approximately 290 daily DCA departures and 175 daily LGA departures that American and US Airways operate today. The divestitures required by the settlement are not expected to impact total employment at the new American.

To ensure much of the service currently operated by the carriers to small- and medium-sized markets from DCA is maintained, the new American has agreed with the DOT to use all of its DCA commuter slot pairs for service to these communities. The new American intends to announce the service changes that will result from the divestitures in advance of the sale of the DCA and LGA slots, so that the airlines acquiring those slots have the opportunity to maintain service to those impacted communities.

In the settlement agreement with the state Attorneys General, the new American has agreed to maintain its hubs in Charlotte, New York (Kennedy), Los Angeles, Miami, Chicago (O’Hare), Philadelphia, and Phoenix consistent with historical operations for a period of three years.  In addition, with limited exceptions, for a period of five years, the new American will continue to provide daily scheduled service from one or more of its hubs to each plaintiff state airport that has scheduled daily service from either American or US Airways. A previous settlement agreement with the state of Texas will be amended to make it consistent with today’s settlement.

Completion of the merger remains subject to the approval of the settlements by the U.S. Bankruptcy Court, and certain other conditions. The companies now expect to complete the merger in December 2013.

Copyright Photo: Andi Hiltl/AirlinersGallery.com. American Airlines’ Boeing 767-323 ER N376AN (msn 25445) touches down in Zurich.

American Airlines: AG Slide Show

US Airways: AG Slide Show

Atlas Air Worldwide Holdings reports 3Q net income of $28.6 million

Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York-JFK) announced adjusted net income attributable to common stockholders of $28.6 million, or $1.13 per diluted share, for the three months ended September 30, 2013, compared with $33.4 million, or $1.26 per diluted share, for the three months ended September 30, 2012.

On a reported basis, third-quarter 2013 net income attributable to common stockholders totaled $23.7 million, or $0.94 per diluted share, compared with $33.9 million, or $1.27 per diluted share, in the third quarter of 2012. Free cash flow of $73.8 million in the third quarter of 2013 compared with $98.9 million in the third quarter of 2012.

“Earnings in the third quarter of 2013 were below our expectations, reflecting market factors,” said William J. Flynn, President and Chief Executive Officer. “Demand in the commercial airfreight peak season through September was less than we anticipated. Airfreight yields remained under pressure, impacting our Commercial Charter segment. In addition, a decline in military charter demand led to a reduction in AMC volumes and fewer favorable one-way AMC missions.

“Results during the quarter were supported by strength in our core ACMI operations and growth in our Dry Leasing business. Led by our new 747-8 freighters in ACMI, we saw increasing contributions during the quarter from investments to diversify our business mix, including the addition of 777 freighters with predictable, long-term revenue and earnings streams in Dry Leasing; our expanding 767 service; growing CMI operations within ACMI; and ongoing continuous improvement initiatives.

“Reflecting our commitment to enhance stockholder value, we acquired a further 3.1% of our outstanding common stock through our share repurchase program from May through August. Combined with the shares that we bought through the end of April, we have repurchased approximately 6.5% of our shares for $72 million this year. In addition, our board of directors has increased our existing authority to repurchase shares from $9 million to $60 million.”

Third-Quarter Results

Revenue, volume and profitability growth in our core ACMI business during the third quarter were driven by our new 747-8Fs, with an average of 3.3 additional -8F aircraft in service compared with the third quarter of 2012, and the continued ramp up and expansion of CMI service.

Improved ACMI segment earnings during the period 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 Dry Leasing, revenue and profitability grew following the acquisition of one 777-200 LRF aircraft in March 2013 and two 777-200 LRF aircraft in July 2013. Each aircraft was acquired with a long-term customer lease already in effect.

In AMC Charter, a reduction in cargo and passenger block hours, as well as a reduced number of one-way AMC missions and a change in the proportion of those missions from outbound U.S. to inbound U.S., led to a significant decline in segment contribution. Higher average cargo and passenger revenue per block hour during the period stemmed from an increase in the average pegged fuel price set by the U.S. military.

Segment results in Commercial Charter primarily related to a reduction in yields driven by soft third-quarter global charter-market conditions. Results also reflected a reduction in return legs due to the change in the number and direction of one-way AMC missions.

Results in the third quarter were also affected by a reduction in capitalized interest on 747-8F aircraft that entered service.

Income Taxes

Reported earnings for the third quarter of 2013 included an effective income tax rate of 31.3%, reflecting both the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business and the net impact of the resolution of certain income tax liabilities.

Nine-Month Results

For the nine months ended September 30, 2013, adjusted net income attributable to common stockholders totaled $54.9 million, or $2.13 per diluted share, compared with $78.3 million, or $2.95 per diluted share, for the nine months ended September 30, 2012.

On a reported basis, nine-month 2013 net income attributable to common stockholders totaled $63.9 million, or $2.48 per diluted share, compared with $77.5 million, or $2.92 per diluted share, in the first nine months of 2012.

Free cash flow in the first nine months of 2013 increased to $180.8 million from $154.1 million in the first nine months of 2012.

Cash and Short-Term Investments

At September 30, 2013, our cash, cash equivalents, short-term investments and restricted cash totaled $298.4 million, compared with $419.9 million at December 31, 2012.

The change in position at September 30 reflected cash provided by operating and financing activities offset by cash used for investing activities.

Net cash used for investing activities in the first nine months of 2013 primarily related to the purchase of two 747-8F aircraft as well as three 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. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.

Share Repurchases

Between mid-May and mid-August, we repurchased 820,276 shares of our common stock for $35.6 million. The shares were acquired pursuant to an accelerated share repurchase program with a financial institution that settled in August.

Through the nine months ended September 30, 2013, we repurchased a total of 1,723,577 shares, or 6.5%, of our outstanding common stock at December 31, 2012.

Future repurchases under our new $60 million authority may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.

Outlook

Looking to full-year 2013, we expect fully diluted earnings per share to total between $3.40 and $3.80 on an adjusted basis and $3.75 and $4.15 on a reported basis.

Our current outlook reflects a much less robust commercial airfreight peak season than previously anticipated. While commercial airfreight volumes are strengthening, airfreight yields remain volatile. In addition, military cargo volumes have declined at a more rapid rate. Together, these factors affected our third-quarter results and have reduced anticipated profitability for the fourth quarter.

Partially offsetting these challenges are increasing contributions from investments to diversify the company’s business mix, led by new 747-8 freighters in the company’s core ACMI business; the addition of 777 freighters with predictable, long-term revenue and earnings streams in Dry Leasing; an expanding 767 service platform; entry into military and commercial charter passenger operations; and continuing growth in the company’s non-asset-intensive CMI operations. Also contributing are ongoing continuous improvement productivity and efficiency initiatives.

Mr. Flynn added: “Airfreight remains a long-term growth industry despite current market challenges. We are focused on the long-term growth of our business, and we are well-positioned to capitalize on market improvements. Our business model is solid and is complemented by substantial operating leverage, strong customer relationships and a superior fleet. We continue to strengthen our competitive position and generate substantial free cash flow, which will enhance stockholder value.”

Copyright Photo: Bernhard Ross/AirlinersGallery.com. Atlas Air’s Boeing 767-38E ER N641GT (msn 25132) is pictured in action at Frankfurt.

Atlas Air: AG Slide Show

Polar Air Cargo: AG Slide Show

Air Canada rouge to start Toronto-Las Vegas flights on October 27

Air Canada rouge (Toronto-Pearson) on October 27 launches service between Toronto (Pearson) and Las Vegas and will launch service between Montreal and Las Vegas on March 13, 2014.

Starting this Sunday, Air Canada rouge will offer ten flights a week from Toronto to Las Vegas for the winter 2013-2014 season featuring 264-seat wide-body Boeing 767-300 ER aircraft, representing a capacity increase of 13% on the route over last winter when it was operated by Air Canada. Air Canada rouge will assume the Montreal-Las Vegas route from Air Canada effective March 13, 2014 with ten flights a week. Air Canada will continue to operate service between Vancouver and Calgary to/from Las Vegas for the winter season.

Toronto-Las Vegas winter flight schedule (effective October 27, 2013):

Air Canada rouge’s service between Toronto and Las Vegas features convenient flight times that maximize travellers’ time in Las Vegas. The daily flight departs Toronto at 9:05 a.m., arriving in Las Vegas at 10:59 a.m. and departs Las Vegas at 12:15 p.m. arriving in Toronto at 7:22 p.m. The second flight, which operates on Thursdays, Fridays and Sundays departs Toronto at 8:45 p.m., arriving in Las Vegas at 10:39 p.m. and departs Las Vegas at 11:55 p.m., arriving the next day in Toronto at 7:00 a.m.

Montreal Las Vegas winter flight schedule (effective March 13, 2014):

Air Canada rouge’s winter service between Montreal and Las Vegas also features convenient, customer-friendly flight times. The daily flight will depart Montreal at 7:40 a.m. arriving in Las Vegas at 10:28 a.m. and will depart Las Vegas at 11:15 a.m. arriving in Montreal at 7:08 p.m. The second flight, which will operate on Thursdays, Fridays and Sundays departs Montreal at 7:50 p.m., arriving Las Vegas at 10:38 p.m. and departs Las Vegas at 10:20 p.m., arriving the next day in Montreal at 7:13 a.m.

Air Canada rouge will operate the Toronto-Las Vegas route with a 264-seat wide-body Boeing 767 aircraft featuring three classes of seating: Premium rouge, rouge Plus and rouge. Premium rouge has 18 seats in a 2 + 2 + 2 configuration with a 41- 42″ pitch, a 7″ inch recline. rouge Plus has 4 rows in a 2 + 3 + 2 configuration behind Premium rouge, with a 35″ pitch, up to 5″, and rouge seating has 246 seats in a 2 + 3 + 2 configuration with a 30-32″ pitch and a 6″ recline. Premium rouge customers on Air Canada rouge North American flights now earn enhanced Aeroplan Miles, have access to priority security lines and complimentary Maple Leaf Lounge access.

Air Canada rouge crew offer the airline’s unique warm welcome onboard. Trained in customer service excellence, the rouge crew take every measure to ensure that flights are relaxed, enjoyable and are part of a memorable start and end to a Las Vegas vacation.

A tasty selection of meals, drinks and snacks, as well as comfort items such as pillows, blankets and headphones, are available onboard through Air Canada rouge’s Buy On Board service.

Air Canada rouge aircraft are all equipped with player, a next generation in-flight entertainment system that streams unlimited live entertainment — including movies, TV shows, kids programming, music and an About Us section — to customers’ personal electronic devices. Air Canada rouge is one of the first airlines in North America to offer streaming onboard content. player is offered at a nominal fee of $5 for rouge and rouge Plus customers for unlimited movie and TV show access; music and destination content are always complimentary. Customers simply need to bring their own fully-charged laptop or iPad, iPod or iPhone, or they can rent an iPad on board for $10.

Copyright Photo: Paul Doyle/AirlinersGallery.com. Air Canada rouge Boeing 767-33A ER C-GHPE (msn 33423) lands at Dublin.

Air Canada rouge: AG Slide Show

Hawaiian Airlines to seek Tokyo Haneda-Kona authority, reports a 3Q net profit of $36.8 million

Hawaiian Airlines (Honolulu) has announced it will file an application to provide nonstop service between Tokyo International Airport at Haneda and Kona International Airport on Hawai’i Island, utilizing operating slots at the Haneda airport being returned by American Airlines later this year.

Hawai’i’s flagship carrier will file its application with the U.S. Department of Transportation on Thursday, proposing daily service using its 294-seat A330 aircraft. Hawaiian Airlines’ 2012 application for non-stop Haneda-Kona service included 175 letters of support from members of the Kona community.

Hawaiian Airlines has been connecting Hawai’i and Japan since November 2010, when it launched daily service between Haneda and Honolulu. The airline quickly followed with service between Honolulu and Osaka, Fukuoka, Sapporo and Sendai, and now provides 6,700 seats per week between Japan and the Hawaiian Islands.

Kona has been without a non-stop flight from Japan since October 29, 2010, when Japan Airlines discontinued direct service to West Hawai’i from Narita International Airport.

On the financial side, the company reported a third quarter net profit of $36.8 million. Hawaiian Holdings issued this statement:

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the third quarter of 2013.

Third Quarter 2013 Financial Results

  • Adjusted net income, reflecting economic fuel expense, of $36.8 million or $0.69 per diluted share.
  • GAAP net income of $40.6 million or $0.76 cents per diluted share.
  • Available seat miles (ASMs) increase of 9.0% year-over-year.
  • Passenger revenue per available seat mile (PRASM) increase of 0.2% and operating revenue per available seat per mile (RASM) increase of 0.1%.
  • Cost per available seat mile (CASM), excluding fuel, increase of 2.1% year-over-year.
  • CASM increase of 1.5% year-over-year.

Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “our third quarter results are a good step towards improving financial performance.  The tide of industry capacity between the US West Coast and Hawai’i is beginning to recede and our new international routes are maturing, both of which are helpful developments.  The strengthening of the US dollar against our major foreign currencies is pushing the other way.  Indeed, were it not for foreign exchange effects, our third quarter results would have been the best in the company’s history.”

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Liquidity and Capital Resources

As of September 30, 2013 the Company had:

  • Unrestricted cash and cash equivalents of $441 million.
  • Available borrowing capacity of $70 million under Hawaiian’s Revolving Credit Facility.
  • Outstanding debt and capital lease obligations of approximately $763 million consisting of the following:
    • $361 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.
    • $159 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
    • $112 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
    • $55 million of outstanding floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
    • $76 million of outstanding Convertible Senior Notes.

Business Highlights

Operational

  • Ranked #1 nationally for on-time performance for the months of June and July 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
  • Exceeded our internal on-time performance goals for the third quarter.

Fleet and financing

  • Returned one Boeing 767-300 aircraft at the end of its lease term.
  • Took delivery of one ATR 42-500 twin-turboprop aircraft to inaugurate new service to Moloka’i and Lana’i.

Product

  • Enhanced our inflight experience on our Boeing 767-300 aircraft by becoming the only U.S. carrier to offer the Apple iPad mini as a replacement for the prior portable entertainment system.

New routes and increased frequencies

  • Honolulu to Taipei, Taiwan three-times-weekly service launched July 9, 2013.
  • Announced the reintroduction of daily non-stop service from Honolulu to Oakland beginning in January 2014, an increase from four times weekly.  Also, announced seasonal service, during the summer of 2014, between Oakland and Kona, three times weekly and Oakland and Lihu’e, four times weekly.
  • Announced seasonal service, during the summer of 2014 between Los Angeles and Kona, three times weekly and Los Angeles and Lihu’e, four times weekly.

Copyright Photo: Eddie Maloney/AirlinersGallery.com. Boeing 767-33A ER WL N581HA (msn 28141) touches down at Las Vegas.

Hawaiian Airlines: AG Slide Show