Tag Archives: 777200

AMR Corporation and US Airways file a motion to set merger trial for November 12, 2013

AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc. (Dallas/Fort Worth), and US Airways Group, Inc. (US Airways) (Phoenix) have announced that they filed a motion to set a trial date and a supporting brief in the United States District Court for the District Of Columbia in connection with the lawsuit filed by the U.S. Department of Justice (DOJ) regarding the merger of the two airlines. In the motion, American Airlines and US Airways have requested a November 12, 2013 trial date.

In their filing, the Companies explain that their proposed trial date is very reasonable by recent historical standards. The DOJ request for 180 days, especially with one of the parties in bankruptcy, however, would be unprecedented and unreasonable in the circumstances. Based on the DOJ merger cases litigated to a decision since 2001, the average time from the DOJ’s complaint to trial is 70 days.

Top Copyright Photo: Ole Simon/AirlinersGallery.com. American Airlines’ Boeing 777-223 ER N781AN (msn 29586) approaches Madrid for landing.

American Airlines: AG Slide Show

US Airways: AG Slide Show

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-132 N814AW (msn 1281) lands at Long Beach near Los Angeles.

Austrian Airlines introduces a new cabin product for its long haul flights

Austrian Airlines (Vienna) has introduced a new long-haul cabin product and issued this statement:

As of now all passengers on Austrian’s long-haul flights benefit from the advantages of its new cabin. These advantages include a new level of seating comfort in Economy Class, an advanced board entertainment system offering non-stop entertainment, as well as innovative Business Class seats capable of being transformed into entirely flat beds. A total of 2,538 new seats were installed in the four Boeing 777 and six Boeing 767 airplanes belonging to Austrian’s long-haul fleet. An optimal array of seats ensures undisturbed flights. The Boeing 777’s Business Class provides four of five passengers sitting in a row with direct access to the aisle. This access is enjoyed, in fact, by every Business Class passenger in Austrian’s Boeing 767s. As before Austrian’s passengers are indulged by the prize-winning service and the first class DO and CO-catered fare. The menus provided in Business Class receive their final touches from flying chefs.

Austrian Long Haul 2 (Austrian)(LR)

The reconfiguration of the cabins has considerably boosted customer satisfaction, which has risen substantial 31 percentage points – among passengers on long-haul flights – since the launch of the new cabin. This result places Austrian Airlines among the peak of the evaluations received by the airlines comprising the world-spanning Star Alliance.

Austrian Long Haul Cabin (Austrian)(LRW)

 

Austrian CCO Karsten Benz states: “We are gratified by the enthusiasm shown by our customers. The significant rise in their satisfaction is proof that our investments of more than €90 million have paid off.”

Top Copyright Photos: Michael B. Ing/AirlinersGallery.com (all others by Austrian Airlines). Boeing 777-2Z9 ER OE-LPC (msn 29313) climbs away from Tokyo (Narita) bound for the Vienna hub.

Austrian Airlines: AG Slide Show

Kenya Airways is losing revenue every day due to the Nairobi terminal fire

Kenya Airways‘ (Nairobi) CEO Titus Naikumi estimates the airline has already lost around $4 million due to the August 7 fire that gutted the international arrival building at Nairobi’s Airport. The airline is suffering long delays and cancellations due to the damage. The airport has erected tents as a makeshift terminal according to this report by Reuters. Kenya Airways is currently operating at around 90 percent of its normal capacity.

Read the full report: CLICK HERE

Copyright Photo: Antony J. Best/AirlinersGallery.com. Boeing 777-2U8 ER 5Y-KQS (msn 33683) prepares to depart from London (Heathrow) bound for Nairobi.

Kenya Airways: AG Slide Show

Delta posts a $844 million net profit in the Second Quarter

Delta Air Lines (Atlanta) today reported financial results for the June 2013 quarter.  Highlights from the quarter include:

  • Delta’s net profit for the June 2013 quarter was $844 million, or $0.98 per diluted share, excluding special items1.  This result is a record June quarter profit excluding special items and is a $258 million improvement year-over-year.
  • Including $159 million in special items, Delta’s GAAP net income was $685 million, or $0.80 per diluted share.
  • The company announced a balanced capital deployment plan, targeted at creating up to $5 billion of value for shareholders by 2017 through further debt reduction and the return of more than $1 billion to shareholders over the next three years by means of $200 million of annual dividends and a $500 million share repurchase program.
  • June quarter results include $118 million of profit sharing expense in recognition of Delta employees’ contributions to the company’s financial performance.
  • Delta generated $1.3 billion of operating cash flow and $730 million of free cash flow in the June 2013 quarter, and ended the period with adjusted net debt of $10.2 billion.

Revenue Environment

Delta’s operating revenue declined $25 million in the June 2013 quarter compared to the June 2012 quarter.  Traffic increased 0.5 percent on a 0.8 percent increase in capacity.

  • Passenger revenue increased 0.7 percent, or $63 million, compared to the prior year period.  Passenger unit revenue (PRASM) was flat year over year with a 0.2 percent improvement in yield.
  • Cargo revenue decreased 11.4 percent, or $30 million, on declining freight yields.
  • Other revenue decreased 5.6 percent, or $58 million, as a result of the decision to discontinue a number of low margin-producing third-party maintenance contracts.

Comparisons of revenue-related statistics are as follows:

Increase (Decrease)

2Q13 versus 2Q12

Passenger Revenue 2Q13 ($M) Change

YOY

Unit

Revenue

Yield Capacity
Domestic $ 3,885 3.7% 0.9% 2.5% 2.8%
Atlantic 1,578 2.5% 1.4% 0.9% 1.0%
Pacific 841 (2.1)% 0.5% (2.7)% (2.6)%
Latin America 492 3.6% 1.2% (2.3)% 2.4%
Total Mainline 6,796 2.7% 1.1% 1.1% 1.6%
Regional carriers 1,698 (6.2)% (2.3)% 0.9% (4.0)%
Consolidated $ 8,494 0.7% (0.1)% 0.2% 0.8%

Cash Flow

Cash from operations during the June 2013 quarter was $1.3 billion, driven by the company’s June quarter profit and the seasonal increase in advanced ticket sales, which was partially offset by $500 million of accelerated pension funding.  The company generated $730 million of free cash flow.

Capital expenditures during the June 2013 quarter were $704 million, including $360 million for the acquisition of 49% of Virgin Atlantic and $238 million in fleet investments, including aircraft parts and modifications. During the quarter, Delta’s debt maturities and capital leases were $405 million.

Delta ended the quarter with adjusted net debt of $10.2 billion and the company has now achieved nearly $7 billion in net debt reduction since 2009.  This debt reduction strategy produced a $43 million year-over-year reduction in interest expense in the June quarter. As of June 30, 2013, Delta had $5.7 billion in unrestricted liquidity, including $3.9 billion in cash and short-term investments and $1.8 billion in undrawn revolving credit facilities.

Cost Performance

Total operating expense in the quarter decreased year-over-year by $805 million driven by the savings from Delta’s structural cost initiatives and lower mark-to-market adjustments on fuel hedges, partially offset by the impact of operational, service and employee investments.

Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was 2.5 percent higher in the June 2013 quarter on a year-over-year basis, driven by the impact of wage increases and operational and service investments.  GAAP consolidated CASM decreased 9 percent, driven by lower fuel expense.

Fuel expense for the June quarter declined $710 million year-over-year, or $288 million excluding mark-to-market adjustments, as a result of lower fuel prices and prior year hedge losses. Delta’s average fuel price3 was $3.03 per gallon for the June quarter.  For the June quarter, operations at the Trainer refinery produced a $51 million loss ($0.05 cents per gallon impact) driven by the elevated price of the Renewable Identification Numbers (RINs) required under the Environmental Protection Agency’s Renewable Fuel Standard.

Balanced Approach to Capital Deployment

In May, Delta announced a five year financial plan and a balanced capital deployment program aimed at creating up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years.  The company’s financial plan focuses on free cash flow generation through a combination of expected earnings improvements and a disciplined approach to capital investment.  Over the next five years, Delta plans to reinvest $2.0 – $2.5 billion annually, or approximately 50 percent of its operating cash flow, into improving the company’s fleet, facilities, products and technology.

The resulting free cash flow will be used to return cash to shareholders, further reduce the company’s debt, and opportunistically address longer-term pension funding needs, driving up to $5 billion of value to Delta’s shareholders.  Specifically,

  • The company expects to achieve an adjusted net debt level of $7 billion by 2017, a $5 billion reduction over 2012.  By meeting the $7 billion target, Delta will have reduced its adjusted net debt by $10 billion since 2009, significantly decreasing the company’s balance sheet risk and accreting more than $750 million of interest expense savings for shareowners;
  • Delta’s Board of Directors initiated a quarterly dividend and declared a $0.06 per share dividend for shareholders of record as of August 9, 2013.  This dividend will be paid on September 10, 2013.  In addition, the Board authorized a $500 million share repurchase program, to be completed no later than June 30, 2016.  Together, these two programs are designed to return more than $1 billion of capital to shareholders over the next three years;
  • The company also plans to make up to $1 billion of incremental contributions to the company’s defined benefit pension plans over the next five years.  These contributions would be in addition to the $650 – $700 million annual contribution requirement.

Special Items

Delta recorded special items totaling a $159 million charge in the June 2013 quarter, including:

  • a $125 million charge for mark-to-market adjustments for fuel hedges settling in future periods; and
  • a $34 million charge for facilities, fleet and other items, primarily associated with Delta’s domestic fleet restructuring.

Delta recorded special items totaling a $754 million charge in the June 2012 quarter, including:

  • a $561 million charge for mark-to-market adjustments on fuel hedges settling in future periods;
  • $171 million in severance and related costs associated with voluntary early out programs; and
  • a $22 million charge for facilities, fleet and other items.

End Notes

(1)  Note A to the attached Consolidated Statements of Operations provides a reconciliation of non-GAAP financial measures used in this release and provides the reasons management uses those measures.

(2)  CASM – Ex: In addition to fuel expense, profit sharing and special items, Delta believes excluding ancillary business costs is helpful to investors because ancillary business costs are not related to the generation of a seat mile. These businesses include aircraft maintenance and staffing services Delta provides to third parties and Delta’s vacation wholesale operations. The amounts excluded were $165 million and $244 million for the June 2013 and 2012 quarters, respectively. The amounts excluded were $350 million and $484 million for the six months ended June 30, 2013 and 2012, respectively.  Management believes this methodology provides a more consistent and comparable reflection of Delta’s airline operations.

(3)  Average fuel price per gallon: Delta’s June 2013 quarter average fuel price of $3.03 per gallon reflects the consolidated cost per gallon for mainline and regional operations, including contract carrier operations, and includes the impact of fuel hedge contracts with original maturity dates in the June 2013 quarter. On a GAAP basis, fuel price includes $125 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period. The net refinery loss for the quarter was $51 million, or 5 cents per gallon.  See Note A for a reconciliation of average fuel price per gallon to the comparable GAAP metric.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-232 LR N702DN (msn 29741) “The Spirit of Atlanta” prepares to land at Tokyo (Narita).

Delta Air Lines: AG Slide Show

ALPA pushes back on growing pilot error media conclusions

The Air Line Pilots Association, Int’l, released the following statement regarding the crash landing of Asiana Airlines (Seoul) flight 214 in San Francisco on Saturday, July 6, 2013.

First and foremost, our thoughts are with those who were involved in the accident this past Saturday. From the crew to the passengers to the families and first responders, we hope they can gain some comfort during this difficult time.

ALPA is stunned by the amount of detailed operational data from on-board recorders released by the National Transportation Safety Board (NTSB) this soon into the investigation. The amount of data released publicly during the field portion of the accident investigation is unprecedented.

It is imperative that safety investigators refrain from prematurely releasing the information from on-board recording devices. We have seen in the past that publicizing this data before all of it can be collected and analyzed leads to erroneous conclusions that can actually interfere with the investigative process.

The release of individual data points from the flight data recorder and the cockpit voice recorder—without the context of the entire body of factual investigative data—represents a potential detriment to flight safety. It encourages wild speculation, as we have already seen in the media, about causes of the accident before all the facts are known, before investigators have the ability to determine why the events occurred, and in this case before the flight crew had even been interviewed.

This premature release of partial data is often taken out of context and creates the impression that the NTSB has already determined probable cause even before the investigation has started. Since each factor of flight, landing, airport environment, and crew is part of safe air travel, we need to ensure that reckless release of information is not sensationalized by the media for the purpose of a few headlines.

ALPA has long supported an objective accident investigation process that is based on the fundamental principle of obtaining all the facts to perform accurate analysis in the context of all factors that may have led to an accident. We stand ready to assist the NTSB or any state investigative agency in obtaining those facts and ensuring that an appropriate operational context is maintained.

ALPA urges the NTSB to make sure that the objective investigative process continues by gathering all the facts and relevant information before leading the public to believe that a cause has been determined.

Founded in 1931, ALPA is the world’s largest pilots union, representing more than 50,000 pilots at 33 airlines in the United States and Canada.

NTSB Videos:

CNN Video:

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Here is another view of the ill-fated Boeing 777-28E ER HL7742 (msn 29171) arriving at Los Angeles before the accident at SFO.

Asiana Airlines: AG Slide Show

Breaking News: Asiana’s Boeing 777-28E HL7742 crashes on landing at San Francisco

Asiana Airlines‘ (Seoul) flight OZ 214 from Seoul (Incheon) to San Francisco with a reported 291 passengers and 16 crew members crashed landed short of runway 28L on landing at San Francisco at 1127 local time. The underside of the fuselage, possibly the main gear, impacted the rock seawall while landing leaving a trail of debris down the overrun area and on to the runway. The forward section of Boeing 777-28E ER HL7742 (msn 29171) was consumed by fire. The main fuselage separated from the tail section on impact. Most passengers and crew members were able to escape the burning aircraft from the main section.

The flight crew gave no indication of a problem before attempting its landing.

Two people have died in the crash. 181 people were initially transported to nine area hospitals from the triage area. 123 people are listed as uninjured. 34 people have been transported to the Trauma Center at the San Francisco General Hospital. Of these 34, five are listed now as “critical” and five are now listed as “serious”. One person is now listed as “unaccounted”. The remainder were later transported to area hospitals for medical attention and are expected to be released.

One eyewitness, watching the planes landing, reported to CNN that he saw the airliner land short of the runway with the landing gear hitting the seawall. A fire ball flared on the underside of the aircraft during the hard landing. The aircraft cartwheeled according to the eyewitness with the tail section and vertical stabilizers separating quickly. The right wing tip shows damage.

Another eyewitness who was a passenger in the rear section of the aircraft told CNN the tail section hit the ground very hard and at least two Flight Attendants “fell out” from rear into the gap that was created when the tail section separated.

An United Boeing 747-400 was very close to the final resting spot of the forward section and was preparing to depart.

Weather was reported to be clear and visibility at 10 miles at the time of the accident.

San Francisco International Airport is now reporting it has opened two runways.

HL7742 was delivered new to Asiana on March 7, 2006.

More news will be posted as it is confirmed.

Read the report from NBC: CLICK HERE

Local TV news coverage from PIX 11: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. HL7742 is pictured on final approach previously at Los Angeles.

Asiana Airlines: AG Slide Show

Videos from San Francisco:

Report from CNN:

Alitalia issues a new Turnaround Plan, Air One to be rebranded

Alitalia (2nd) (Rome), a carrier that is familiar with financial problems, has issued this new “Industrial Plan 2013-2016” to turnaround the flag carrier along with Air One (Milan-Malpensa):

Gabriele Del Torchio, new CEO of Alitalia, presented the strategic outline of the new Industrial Plan 2013 – 2016 for Alitalia and the new mission of the Company.
With this Plan, the Group wants to better respond to changes in the aviation market which, in recent years, has seen a sharp reduction in the domestic traffic sector, against a growth of international and intercontinental routes, particularly to Eastern Europe, North and South America, Middle and Far East.
The Plan foresees an increase in revenue from overseas activities which already account for over 50% of the total revenue of the Group, making Alitalia one of the main Italian companies to contribute to the balance of payments of Italy.
The Industrial Plan 2013 – 2016 will focus on 3 principal businesses – Alitalia, Air One and Alitalia Loyalty (the new company of the Group, founded at the end of 2012, which deals with the development and enhancement of the MilleMiglia program) and will be based on 4 strategic lines with the goal of recovering the productivity of the Company, allowing it to remain in the market efficiently and profitably.
1. STRATEGIC LINE: REDEFINITION OF THE ROLE OF ALITALIA AND AIR ONE WITH REGARD TO SHORT AND MEDIUM HAUL ROUTES
This will involve the redefinition of the Alitalia Group’s short and medium haul network, differentiating the activities of Alitalia and Air One, avoiding overlapping between the two Companies, with the aim to better respond to the needs of all customer segments.
The Smart Carrier Air One: a web oriented company, which will have operational bases in Sicily, North East Italy and Pisa.
A new image and branding project is under way for Air One. The new brand, which will replace Air One, will have a stronger likeness to Alitalia. The Smart Carrier will offer, with a predominantly web-oriented sales model, 2 fares and 2 levels of service (GO and SMART) to meet the needs of both price-sensitive and premium segments. GO fare passengers will be able to customise their travel experience by choosing additional services.
The Smart Carrier’s new short and medium haul network structure will be dedicated to serve point-to-point connections, from the bases of Catania, Palermo, Venice and Pisa, strengthening, in particular, the provision of international flights.
The increase of the offer in Sicily and in North East Italy responds to the need to meet the high traffic demand in Sicily and to regain market share in North East Italy, which was lost in recent years to other European airports. Maintaining a presence in Pisa and Tuscany is also of great importance.
Alitalia strengthens its operations at the hub of Rome Fiumicino and at Milan Linate and Milan Malpensa airports
Alitalia will operate all national and international connections to/from the hub of Rome Fiumicino and to/from Milan Linate and Milan Malpensa airports, increasing international and intercontinental services at these 3 airports.
With regard to Milan Linate airport, whilst maintaning the connections to Southern Italy, the Plan provides that selected Rome-Milan-Rome slots will be replaced with new international point-to-point connections, thereby allowing Alitalia to satisfy the needs of customers in Northern Italy, especially business travellers.
During the course of the Plan, new flights from Milan Linate to Copenhagen, Budapest, Vienna, Stockholm, Helsinki, Malta, Tallinn, Prague and Warsaw will be introduced.
Alitalia will also operate services from Milan Malpensa airport to non-EU destinations such as Cairo, Tunis, Moscow and Tirana, in addition to connections to Rome Fiumicino.
The international offer will be further enhanced, as early as 2013, with new flights from Rome Fiumicino to several international routes. Possible new destinations are: Nuremberg, Lviv, Bordeaux, Skopje, Zagreb, Sarajevo, Ankara, Marrakech, Misurata, Minsk, Basel, Marseille, Rostov, Pristina, Damascus, Erbil.
New pricing strategy and servicing
The safeguard and the development of the domestic and international market share will be ensured through a rethinking of pricing strategies to take into account and to attract not only those who choose a premium fare (the vast majority of Alitalia passengers today), but also price-sensitive customers, who, in any case, will be able to customise their travel experience by choosing additional services.
The new strategy also embraces other customer groups by offering dedicated initiatives. For example, young people (thanks to the already introduced JUMP ON-BOARD fares) and, soon, families and foreign nationals living in Italy.
2. STRATEGIC LINE: DEVELOPMENT OF INTERCONTINENTAL ACTIVITIES
The Strategic Plan 2013 – 2016 sees a strong projection on the intercontinental network.
Development of the long-haul fleet
To support the development of the intercontinental network, 6 long-haul aircraft are expected to be introduced into the Alitalia fleet, during the course of the Plan.
Various actions are needed in order to increase profitability of the current intercontinental routes. In October 2013, as part of a specific plan, the reconfiguration of 10 Airbus A330 aircraft part of the Alitalia fleet will commence and is expected to be completed by 2014.
The new configuration is the result of a research into the precise needs of the Italian air transport  market.
New long-haul routes with high potential
New long-haul routes with high traffic potential to/from Italy will be identified and introduced. The new routes will operate mainly from the hub of Rome Fiumicino and the airports of Milan Malpensa and Venice.
The new intercontinental destinations which may be introduced between Winter 2014 and Winter 2016 are Nairobi, Seoul, Santiago de Chile, San Francisco and Johannesburg from Rome. Shanghai, Abu Dhabi and Osaka from Milan Malpensa; Tokyo from Venice.
The launch of the new routes will be combined with the strengthening of the Alitalia presence through increased frequencies to North and South America (especially the United States and Brazil), Japan and the Arabian peninsula.
This process will boost the attractiveness of Rome Fiumicino as a national and intercontinental hub, with a strong and innovative trade policy to attract increasing volumes of passengers.
Strengthening of business partnerships with major companies
Parallel to the development of new long-haul routes served directly, Alitalia will expand its worldwide presence in countries which, are today insufficiently served, by strengthening existing commercial partnerships.
Thanks to the reinforcement of existing codesharing agreements, or through the development of new agreements, Italian passengers will be able to reach destinations throughout the world, even if not directly served by Alitalia.
Development of market share and of commercial activity abroad
Alitalia, as ambassador of Italy and of Italian excellence in the world, aims to increase its market share abroad and, in particular, in those countries where there is a strong presence of Italian communities, such as Canada, USA, Brazil, Argentina, Uruguay, South Africa and Australia.
At the same time, to further increase the flow of traffic to Italy, of both leisure and business travellers, Alitalia will strengthen its commercial network, already present in many worldwide countries.
The expansion of Alitalia abroad will be made possible by alliances and codesharing agreements.
ROME FIUMICINO RE-HUBBING PROJECT
An all-encompassing activity, which will fast forward the achievement of the objectives highlighted in the first two strategic lines of the 2013 – 2016 Industrial Plan, is the Re-Hubbing project of the Alitalia hub at Rome Fiumicino Airport, which will be launched in October for the Winter 2013 – 2014 timetable.
This process consists of the reorganization and optimization of the time slots for domestic, international and intercontinental flights departing from and arriving at Rome Fiumicino, with the aim of improving the quality of the service offered to passengers.
The change of the time slots for flights to/from Rome Fiumicino has been implemented in favour of both business passengers, who will benefit from flights to Italy and Europe with early morning departures and evening returns, and passengers departing from other Italian airports, who will be able to take advantage of more convenient connections in Rome Fiumicino to reach long-haul destinations, such as the Americas.
This reorganization will also guarantee significant benefits and economic advantages for Alitalia, thanks to a more efficient operational structure and use of flight and ground resources at the Rome Fiumicino hub.
3. STRATEGIC LINE: DEVELOPMENT OF INFRASTRUCTURE PARTNERSHIPS AND MORE ATTENTION TO THE INTERMODAL PASSENGER TRANSPORTATION (AIR AND RAIL)
It involves the identification of new partnerships and the strengthening of existing ones, with key infrastructure partners in Italy, such as, for example, airports.
The goal of these partnerships is to create synergies and improve customer satisfaction through increased efficiency of ground operations, joint development of network and infrastructures and the expansion of services which are not closely related to flight operations (parking or transfers to/from airports).
The Plan calls for another key element of future collaboration: the opportunity to introduce and develop appropriate intermodal connections between aviation and high speed rail.
A more efficient allocation of traffic between train and plane will allow to optimize the inputs of the Italian national production system.
4. STRATEGIC LINE: TURN ALITALIA LOYALTY INTO A SEPARATE BUSINESS BRINGING PROFITABILITY TO THE ENTIRE ALITALIA GROUP
This relates to Alitalia Loyalty, the new company of the Group, founded at the end of 2012, which deals with the development and the enhancement of the Alitalia MilleMiglia programme.
The main guidelines of the Plan relating to the operation of Alitalia Loyalty include: the push to increase the number of members of the MilleMiglia programme, the development of new ways to redeem miles on flights or other services, the creation of high value partnerships with leading financial and credit institutions, the entrance of the MilleMiglia programme in a coalition of many loyalty programs to increase the opportunities of earning and redeeming Alitalia miles, the development of new forms of communication and marketing towards MilleMiglia members.
ECONOMIC-FINANCIAL OBJECTIVES OF THE 2013 – 2016 PLAN
During the course of the four-year plan, with the implementation of all the expected industrial and financial measures, the Company plans to achieve the following economic results:
  • 2013: positive industry EBIT in the second semester, resulting from an improvement in industrial management
  • 2014: break-even operating margin
  • 2015: balanced budget
  • 2016: balance sheet profit
Concurrently, the following objectives have also to be achieved:
  • Increase the convertible shareholders loan by 55 million euros within December 2013
  • Increase the financial resources by 300 million euros in December 2013
THE NEW MISSION OF ALITALIA
The Industrial Plan provides that Alitalia refocuses on the values that have always distinguished the Company in Italy and in the rest of the world: the being Italian, the high quality service and the pride of belonging.
These elements define the new mission of the Company:
PROUD TO SHOW THE BEST OF OUR COUNTRY. WITH PASSION.
The new mission of Alitalia, which will be made as visible as possible to customers on planes and at airports, is, in a nutshell, the new spirit of Alitalia: a company that, with its highly recognizable tricolor tailfin and thanks to the passionate effort of all its employees, is the ambassador of the quality, the elegance and the typical Italian lifestyle that make Italy an icon in the world.
The first initiatives will address the re-branding of the three flight service classes, the improvement of on-board services, the new VIP Lounges and the new assistance service dedicated to passengers in transit at the airport hub of Rome Fiumicino.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alitalia will concentrate on adding new, higher-yield long-range international routes. Boeing 777-243 ER I-DISA (msn 32855) climbs away from Tokyo (Narita).

Alitalia (2nd): AG Slide Show

Air One: AG Slide Show

Bottom Copyright Photo: Richard Vandervord/AirlinersGallery.com. Air One will be rebranded, possibly as “Smart Carrier”. Air One’s Airbus A320-215 EI-DSK (msn 3328) taxies at the Milan (Malpensa) base in the 1995 color scheme.

American Airlines completes Electronic Flight Bag (iPad) implementation

American Airlines (Dallas/Fort Worth) has completed the successful rollout of its industry-leading Electronic Flight Bag program with the discontinuation of paper revisions to terminal charts, making it the first majorcommercial airline to fully utilize tablets in all cockpits during all phases of flight. In April, American completed testing on its Boeing 757 and 767 aircraft and has secured FAA approval to use the Apple iPad on all of its current fleet types – Boeing 777, 767, 757, 737 and MD-80.

An Electronic Flight Bag, which replaces more than 35 pounds of paper-based reference material and manuals that pilots often carried in their carry-on kitbag, offers numerous benefits for American and its pilots.

“Our Electronic Flight Bag program has a significant positive environmental and cost-savings impact,” said David Campbell, American’s Vice President – Safety and Operations Performance. “In fact, removing the kitbag from all of our planes saves a minimum of 400,000 gallons and $1.2 million of fuel annually based on current fuel prices. Additionally, each of the more than 8,000 iPads we have deployed to date replaces more than 3,000 pages of paper previously carried by every active pilot and instructor. Altogether, 24 million pages of paper documents have been eliminated.”

All American pilots now enjoy the benefits associated with replacing their heavy kitbags – one of the airline’s biggest sources of pilot injuries – with a 1.35-pound iPad. The digital format also requires less time to update each of the six or more paper manuals found in each pilot’s kitbag, as manual paper revisions take hours to complete every month, compared to the minutes it takes for electronic updates.

“Our focus on technological improvement throughout our operation has never been stronger as we continue to build the new American,” said Patrick O’Keeffe, American’s Vice President – Airline Operations Technology. “As the first major commercial airline to successfully complete the Electronic Flight Bag transition across its fleet, we are proud to count this among our other successful programs that provide the tools our people need to perform their duties safely and efficiently.”

As part of the Electronic Flight Bag program, American’s pilots use mobile software and data from Jeppesen, a unit of Boeing Digital Aviation. The FAA-approved Jeppesen Mobile Terminal Chart application is allowed for gate-to-gate use throughout all phases of flight and, with the exception of a few select documents, replaces paper operating manuals with up-to-date electronic information that is easier to access.

“We congratulate American Airlines on the success of its Electronic Flight Bag program,” said Jeppesen President Thomas Wede. “Working closely together on this program over several years, we take pride in American’s achievements as it continues to eliminate paper-based materials in the flight deck, reducing pilot workload and increasing operational efficiency in a competitive business environment.”

American and the Allied Pilots Association (APA) began working on the feasibility of using a tablet device as an Electronic Flight Bag in June 2010, and American was the first commercial airline to receive FAA approval to use a tablet during all phases of flight in December 2011 on its Boeing 777 fleet. American has worked closely with its pilots throughout all phases of development that led to the program’s full integration.

Beginning July 10, American Eagle Airlines pilots will have the option to use Apple iPads to access reference material and manuals, making American Eagle one of the first regional carriers to adopt Electronic Flight Bags.

Top Copyright Photo: Brian Peters/AirlinersGallery.com. Boeing 777-223 ER N782AN (msn 30003) arrives at the Dallas-Fort Worth International Airport (DFW) hub.

American Airlines: AG Slide Show

Technical Videos:

El Al’s stockholders approve the Fimi acquisition

El Al Israel Airlines‘ (Tel Aviv) stockholders have approved a 47 percent acquisition by Fimi Fund, a local Israeli investment fund. The airline issued this statement:

According to agreement signed by El A and the Fimi Fund in April, the Fund will invest up to $75 million in El Al and become a controlling group in the airline along with Knafaim.

According to the draft of the transaction, Fimi will invest up to $50 million by July 2013, and can extend completion of the transaction by two 45-day periods.

Fimi Fund’s commitment to complete the transaction is subject to several conditions, among them approval by El Al stockholders, which was accomplished on June 6.

The completion of the transaction is conditional on approvals by regulatory authorities and a signed agreement between El Al and its people on a new collective agreement whose terms are acceptable to Fimi.

On the financial side, El Al reported its first quarter profit declined to $37.9 million, down from $40.5 millionin the same quarter a year ago.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-258 ER 4X-ECD (msn 33169) climbs away from the runway Los Angeles International Airport.

El Al: AG Slide Show

Emirates launches a new route to Tokyo Haneda today

Emirates (Dubai) today (June 3) celebrated the start of its daily, nonstop service from Dubai to Tokyo International Airport (Haneda) with the launch of its inaugural flight. Haneda is the company’s third destination in Japan.

Emirates’ flight EK 312 departs Dubai at 0935, touching down at Haneda 0001 the following day. The return flight, EK 313, departs Haneda at 0130 and arrives at Dubai at 0705 the same day.

According to the airline, the Boeing 777-200 LR aircraft operating the route is equipped with eight luxurious private suites in First Class, 42 of its latest lie-flat seats in Business, and generous space for 216 passengers in Economy, along with gourmet cuisine in all cabins which has been tailored to Japanese passengers, served by Emirates’ multinational cabin crew.

The aircraft also features ice, Emirates’ award-winning inflight entertainment system which offers over 1,500 channels showing the latest Japanese blockbusters, subtitled Hollywood films and Japanese music and TV.

Emirates now operates services to 134 destinations in 77 countries from Dubai, earlier this year Emirates launched services to Warsaw and Algiers. In addition to Haneda, Emirates has announced plans to launch services to Stockholm starting 4 September, Clark International Airport (Philippines) beginning on 1 October; the same day as it begins its transatlantic route between Milan and New York.

Copyright Photo: Paul Denton/AirlinersGallery.com. Boeing 777-21H LR A6-EWD (msn 35577) touches down at Geneva.

Emirates: AG Slide Show