Tag Archives: 787-8 Dreamliner

Air Tanzania to become a new Boeing 787-8 Dreamliner operator

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Boeing and the United Republic of Tanzania have confirmed an order for one 787-8 Dreamliner, valued at $224.6 million at list prices. The aircraft will be operated by Air Tanzania, the flag carrier of Tanzania. The order was previously attributed to an unidentified customer on Boeing’s Orders & Deliveries website.

 

Air Tanzania Company Limited is the flag carrier of Tanzania based in Dar es Salaam with its hub at Julius Nyerere International Airport and currently flies to destinations in Tanzania with a growing fleet of airplanes.

Image: Boeing.

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Hainan Airlines to fly the Los Angeles – Changsha, China route

Hainan Airlines Boeing 787-8 Dreamliner B-2739 (msn 38055) SJC (Michael B. Ing). Image: 930154.

Hainan Airlines (Haikou and Beijing) has announced it will launch the only nonstop service from Los Angeles (LAX) to inland China on January 21, 2016. Hainan will connect passengers to Changsha, capital of Hunan Province, a metropolis of over 7 million people famous for its world-renowned cuisine and rich history.

The new route is part of Hainan’s large-scale expansion in North America. On the west coast, Hainan already operates nonstop service between San Jose (Silicon Valley) (SJC) and Beijing, and from Seattle-Tacoma International Airport to Beijing and Shanghai. This complements the airlines’ direct routes between Beijing and Chicago, Boston and Toronto, and between Shanghai and Boston.

All North American routes – including the new service between LAX and Changsha – are flown by Boeing 787 Dreamliners, making Hainan the airline with the most nonstop 787 Dreamliner routes between China and North America.

 

Beginning January 21, the newest route departs LAX Terminal 2 on Mondays and Thursdays at 12:35 pm and arrives Changsha at 7:20 pm the following day. Return flights depart Changsha at 1:00 pm and arrive LAX at 10:35 am the same day. LAX times are one hour later after March 12 due to Daylight Savings Time.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 787-8 Dreamliner B-2739 (msn 38055) departs from San Jose.

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Norwegian to fly from London Gatwick to Oakland

Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) Boeing 787-8 Dreamliner LN-LNG (msn 35314) (Edvard Munch, Norwegian Artist) LAX (Michael B. Ing). Image: 930341.

Norwegian Long Haul (Norwegian.com) (Oslo) is planning to launch a new route connecting London (Gatwick) with Oakland in May 2016. The new route will be operated three days a week with Boeing 787-8 Dreamliners starting on May 12 per Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Now registered in Norway (was previously registered in Ireland), Boeing 787-8 Dreamliner LN-LNG (msn 35314) arrives at Los Angeles International Airport.

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Norwegian orders 19 additional 344-seat Boeing 787-9 Dreamliners

Norwegian Air Shuttle (Norwegian Long Haul) (Oslo) today made this announcement:

Norwegian.com logo-1 (LRW)

Norwegian, Europe’s third largest low-cost airline, is continuing to expand its international operations by signing an agreement to purchase 19 new Boeing 787-9 Dreamliners – the order will help more than quadruple its current long-haul fleet to 38 aircraft within the next five years.

The agreement is the largest single order of 787-9s in Europe and includes purchase options for an additional ten aircraft of the same type. The new order will enable the company to launch even more long-haul routes and expand its existing network in the coming years.

Norwegian already operates Dreamliner aircraft from its London Gatwick base, serving the UK’s only low-cost long-haul flights to US – Dreamliners are used on services to New York, Los Angeles and Fort Lauderdale/Hollywood. A further low-cost route from Gatwick to Boston will be launched in May 2016, while next month will see the launch of low-cost Caribbean flights with the UK’s only direct route to Puerto Rico – both new routes will also be served by Dreamliner aircraft.

Norwegian currently operates eight 787-8 Dreamliners and has 11 of the bigger 787-9 on order. With today’s order, Norwegian’s long-haul fleet will consist of 38 Dreamliners by 2020. The first deliveries from the new order will commence in 2017.

The 787-9 complements and extends the 787 family. With a longer fuselage, the 787-9 will fly 53 more passengers than the 787-8. Norwegian’s asset company, Arctic Aviation Assets Limited (AAA), will own the aircraft.

 

Norwegian’s version of the 787-9 has 344 seats with 35 in premium and 309 in economy. With today’s order for 19 787-9s, Norwegian has more than 150 unfilled orders from Boeing, including 100 737 MAXs. In addition, the company has 100 Airbus A320neos on order.

In other news, on the financial side, Norwegian today reported its third quarter results for 2015 with a pre-tax result (EBT) of 1.1 billion NOK (£87million), a strong improvement from the same quarter previous year. The company’s long-haul operations and international routes have a positive impact on the results. The load factor is at a record high of 91 percent.
The pre-tax result was 1.1 billion NOK, a strong improvement from 505 MNOK (£43.5million) in the same quarter last year. The load factor for the third quarter was 91 per cent, up six per cent.

The airline carried 7.7 million passengers this quarter, an increase of 9 per cent. The long-haul passenger growth was 15 per cent, compared with last year’s third quarter result.

Norwegian’s strongest growth in terms of passenger numbers was at London Gatwick, where the airline operates both long- and short-haul routes. The growth at Spanish airports is also considerable. In the Nordic countries passenger numbers are stable, with a slight increase in market share.

Norwegian CEO Bjørn Kjos said: “The third quarter results show that Norwegian’s long-haul operations and international routes are becoming significantly more important. This is where we see most of the future growth potential, enabling the company to compete in a global market with strong competition.

“UK activity has played a crucial role in a strong third quarter for Norwegian, with Gatwick seeing our biggest overall growth in passenger numbers. With new aircraft and new routes planned, expansion in the UK will continue to be at the forefront of our long-term plans.

“We also see growth in Europe in general, while the Scandinavian market is stable. The Scandinavian and European route networks play an increasingly important role in our long-haul strategy, as many of our passengers use connecting flights with Norwegian.”

The UK will be a key market in Norwegian’s future expansion plans – growth and activity in the UK during the third quarter has included:

UK FLEET UPGRADED WITH NEW AIRCRAFT – Norwegian already has one of the youngest aircraft fleets in the world and Q3 has seen further new 737-800 aircraft begin operating from UK airports

Also in the third quarter, Norwegian received more international awards, including two Passenger Choice Awards. The company took delivery of five new aircraft, ordered two new Dreamliners and entered into an agreement to lease out 12 of its new Airbus A320neos, which will be delivered from 2016. Norwegian-subsidiary Arctic Aviation Assets Limited owns the aircraft and will be leasing them out for a period of 12 years.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 787-8 Dreamliner EI-LNA (msn 35304) is pictured at Paine Field near Everett before it was handed over to the carrier.

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Oman Air becomes a new Boeing 787-8 Dreamliner operator with the first delivery

Oman Air 787-8 A40-SA (08)(Grd)(Oman Air)(LR)

Oman Air (Muscat) and Boeing (Chicago, Seattle and Charleston) celebrated the delivery of the airline’s first Boeing 787 Dreamliner. The airline ordered six 787-8s in November 2011 as part of its expansion plans. The pictured Boeing 787-8 A40-SA (msn 42378) was handed over to the carrier on October 7, 2015.

Boeing currently has eight 787 customers in the Middle East with a total of 175 Dreamliners ordered and 140 in backlog.  Boeing has also been contracted by Oman Air for a suite of services to support the upcoming entry into service of its 787 Dreamliners and to ensure ongoing efficiency and cost savings for its fleet. These services will help Oman Air minimize the time and cost of maintenance while increasing airplane availability.

Oman Air issued this statement:

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The state-of-the-art airliner will fly from the Omani capital of Muscat to the southern city of Salalah following its delivery to Oman Air. The flight will be hosted by members of Oman Air’s senior management team, and will carry VIPs, high-ranking government officials, dignitaries from public and private sector organisations, and media representatives. During the one-and-a-half-hour flight each guest will be amongst the first to enjoy Oman Air’s outstanding Dreamliner passenger experience, prior to the aircraft entering scheduled service.

Following the special showcase flight, the Dreamliner will enter service on routes from Muscat to Europe and Saudi Arabia.

Oman Air 787-8 A40-SA (08)(Flt)(Oman Air)(LR)

Oman Air’s new Dreamliner is one of six currently on order. Following delivery of the first aircraft in October, a second Dreamliner will arrive with the airline in November 2015. A further four deliveries are expected between 2016 and 2018.

Images Above: Oman Air.

Photo Below: Boeing.

Oman Air 787-8 A40-SA (08)(Grd) PAE (Boeing)(LR)

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United Airlines wants to operate the Boeing 787 from San Francisco to Xi’an, China

United Airlines (Chicago) has applied to the U.S. Department of Transportation (DOT) for authority to begin seasonal nonstop service between the airline’s San Francisco hub and Xi’an, China. If approved, this will be the first trans-Pacific service to Xi’an operated by any airline, and United will be the first U.S. airline to serve the city.

United intends to use the world’s most advanced passenger airplane, the Boeing 787 Dreamliner, to operate the three-times-weekly service between May 8 and October 27, 2016 (westbound).

 

Flight Schedule

The proposed flights, subject to government approval, will depart San Francisco International Airport at 1:25 p.m. on Tuesdays, Thursdays and Sundays and arrive in Xi’an at 5:30 p.m. the following days (all times local).

The return flights will depart Xi’an’s Xianyang International Airport at 10:30 a.m. on Tuesdays, Thursdays and Saturdays and arrive at San Francisco International Airport at 7:35 a.m. the same days. Flying times will be approximately 13 hours, 5 minutes westbound and 12 hours, 5 minutes eastbound.

 

Xi’an is the capital of Shaanxi Province in central China, at the eastern end of the Silk Road. With a population of more than 8 million, it is one of China’s oldest cities and an important cultural, economic and educational center. The plains surrounding Xi’an are home to the famed Bingmayong (Terracotta Warriors), thousands of life-size, hand-molded figures buried with China’s first emperor, Qin Shi Huang.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 787-8 Dreamliner N26909 (msn 34827) departs from the Los Angeles hub.

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JAL is coming back to Dallas/Fort Worth

JAL-Japan Airlines (Tokyo) will restore the Tokyo (Narita) – Dallas/Fort Worth route on November 30. The restored route will be operated with Boeing 787-8 Dreamliners four days a week.

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American Airlines issued this statement welcoming back JAL to DFW:

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American Airlines is pleased to welcome fellow oneworld alliance member and Pacific Joint Business partner Japan Airlines (JAL) to Dallas/Fort Worth International Airport (DFW) with its return to service between Tokyo Narita (NRT) and DFW starting November 30, 2015. American will add its code to the route.

American currently operates twice-daily service from DFW to NRT with Boeing 777-200 aircraft. JAL will offer customers service four days per week with Boeing 787-8 aircraft fitted with the airline’s latest cabin interiors and seats in a three-class configuration and is considering scheduling daily service for spring 2016.

“On behalf of American’s 100,000 employees, we welcome our joint business partner, Japan Airlines, to our great hub in Dallas/Fort Worth,” said Andrew Nocella, American’s chief marketing officer. “American is making great strides to expand our presence in Asia, and this partnership represents a key component of that effort. This new service complements American’s existing service and brings more choice for our customers traveling between Asia and the U.S., providing more opportunities to connect Asia to South America. Japan Airlines is an honorable partner and a great friend to American.”

“We are pleased to announce the return of Dallas/Fort Worth to our international network, which becomes our eighth gateway in North America and our fourth U.S. service launch in just over three years,” said Yoshiharu Ueki, President of Japan Airlines. “By making full use of the efficiencies of the Dreamliner as well as capitalizing on our even stronger relationship with American Airlines, we are confident this resumed service will provide even more valuable links for commercial and cultural exchanges for our customers in both regions and beyond.”

“We are honored to welcome back Japan Airlines to Dallas/Fort Worth International Airport and are excited about the outstanding connectivity and customer service they will provide to passengers flying to Japan and throughout Asia,” said Sean Donohue, chief executive officer of DFW Airport. “With the addition of this new flight to Tokyo, coupled with partner American Airlines’ two daily flights, DFW Airport will further support our mission to connect the world to Dallas Fort Worth.”

 

American and JAL commenced their Pacific Joint Business partnership in April 2011, and have since greatly expanded customer benefits including better flight schedules, expanded codesharing, more coordinated services and greater access to a wider variety of fares.

JAL will offer a special bonus mile campaign for JAL Mileage Bank loyalty program members. For details, refer to the JAL website.

Copyright Photo: Fred Freketic/AirlinersGallery.com. Boeing 787-8 Dreamliner JA839J (msn 34853) taxies at New York’s JFK International Airport (JFK).

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Air Canada reports a record second quarter net profit

Air Canada (Montreal) reported record second quarter adjusted net income of $250 million (1) (all amounts are reported in Canadian dollars) or $0.85 per diluted share compared to adjusted net income of $139 million or $0.47 per diluted share in the second quarter of 2014, an improvement of $111 million or approximately 80 percent. EBITDAR(1) (earnings before interest, taxes, depreciation, amortization and aircraft rent) amounted to $591 million compared to EBITDAR of $456 million in the same quarter in 2014, an increase of $135 million or approximately 30 per cent year-over-year. The airline recorded an EBITDAR margin of 17.3 per cent compared to an EBITDAR margin of 13.8 per cent in the second quarter of 2014, an improvement of 3.5 percentage points. On a GAAP basis, Air Canada reported record second quarter operating income of $323 million compared to operating income of $245 million, an improvement of $78 million or approximately 32 per cent from the second quarter of 2014. An operating margin of 9.5 per cent in the second quarter of 2015 reflected an improvement of 2.1 percentage points from the same quarter in 2014.

Air Canada logo-1

“We again expect to deliver record results in the third quarter, with EBITDAR margin expansion versus prior year higher than the 350 basis point expansion recorded in the second quarter. Demand continues to be robust moving into, historically, our most important quarter given the travel demands and patterns of our North American customers. Our capacity additions for the year, which are largely in our international markets, are important contributors to our increased profits and remain consistent with our plan established in a higher fuel price environment. Our plan is not dependant or conditional on fuel prices staying at the current levels; and the transformative changes we have made over the last several years provide us with the cost structure, fleet and flexibility to respond not only to increased competition in any of our key markets, but also to weaknesses in the Canadian dollar or a downturn in the economy. If we see demand weakening, we can adjust quickly. We are building a resilient airline for the long-term, a sustainably profitable company and global industry leader,” said Mr. Rovinescu.

Second Quarter Income Statement Highlights

In the second quarter of 2015, on capacity growth of 9.3 per cent, system passenger revenues of $3.082 billion increased $117 million or 3.9 per cent from the second quarter of 2014. Traffic growth of 8.7 per cent reflected traffic increases in all of Air Canada’s five geographic markets. A yield decline of 5.0 per cent, consistent with the anticipated yield impact stemming from the implementation of the airline’s strategic plan, reflected an increase in average stage length of 3.4 per cent, which had the effect of reducing system yield by 1.9 percentage points, a higher proportional growth of lower-yielding international-to-international passenger flows in support of the airline’s international expansion strategy, a higher proportion of seats into long-haul leisure markets, and a reduction in carrier surcharges relating to lower fuel prices, particularly where carrier surcharges are regulated. The favourable impact of a weaker Canadian dollar on foreign currency denominated passenger revenues increased passenger revenues by approximately $61 million in the second quarter of 2015. Passenger revenue per available seat mile (PRASM) decreased 5.5 per cent from the second quarter of 2014 on the lower yield and, to a much lesser extent, a passenger load factor decline of 0.5 percentage points.

In the second quarter of 2015, operating expenses of $3.091 billion increased $31 million or 1.0 per cent from the second quarter of 2014 on the capacity growth of 9.3 per cent. The increase in operating expenses reflected the impact of the weaker Canadian dollar and capacity-related cost increases largely offset by the impact of lower jet fuel prices. The second quarter of 2015 included impairment charges of $14 million and favourable tax-related provision adjustments of $23 million while the second quarter of 2014 included favourable tax-related provision adjustments of $41 million (the impairment charges and tax-related provision adjustments are excluded from adjusted net income and adjusted CASM results). The unfavourable impact of a weaker Canadian dollar on foreign currency denominated operating expenses (mainly U.S. dollars) in the second quarter of 2015, when compared to the second quarter of 2014, increased operating expenses by approximately $134 million (comprised of $73 million in aircraft fuel expense and an aggregate of $61 million in non-fuel operating expenses).

Air Canada’s cost per available seat mile (CASM) decreased 7.6 per cent from the second quarter of 2014. The airline’s adjusted CASM(1), which excludes fuel expense, the cost of ground packages at Air Canada Vacations® and unusual items (such as the impairment charges and the tax-related provision adjustments discussed above) increased 0.7 per cent from the second quarter of 2014, in line with the 0.25 to 1.25 per cent increase projected in Air Canada’s news release dated May 12, 2015. Had the Canadian-U.S. dollar exchange rate remained at 2014 levels, adjusted CASM would have decreased 1.8 per cent when compared to the second quarter of 2014.

Financial and Capital Management Highlights

At June 30, 2015, unrestricted liquidity (cash, short-term investments and undrawn lines of credit) amounted to $3.283 billion (June 30, 2014 – $2.954 billion).

Adjusted net debt amounted to $4.896 billion at June 30, 2015, a decrease of $236 million from December 31, 2014 as higher cash and short-term investments balances more than offset the increase in long-term debt and finance lease balances (including current portion). The airline’s adjusted net debt to EBITDAR ratio was 2.3 at June 30, 2015 versus a ratio of 3.1 at December 31, 2014.

In the second quarter of 2015, net cash flows from operating activities totaled $509 million, an improvement of $123 million from the second quarter of 2014. Free cash flow(1) amounted to $299 million, $335 million higher than the second quarter of 2014. This increase reflected a decrease in capital expenditures of $212 million and the higher cash flows from operating activities.

For the 12 months ended June 30, 2015, return on invested capital (ROIC(1)) was 16.2 per cent versus 11.0 per cent for the 12 months ended June 30, 2014.

Current Outlook

EBITDAR Margin

For the third quarter of 2015, Air Canada expects to deliver record results, with EBITDAR margin expansion versus prior year higher than the 350 basis point expansion recorded in the second quarter of 2015.

Capacity

Air Canada expects third quarter 2015 system ASM capacity, as measured by available seat miles (ASMs), to increase 9.5 to 10.5 per cent when compared to the third quarter of 2014, and to be comprised of an increase in the total number of seats dispatched (system) of 6.5 to 7.5 per cent and an increase in system average stage length (measured by ASMs divided by seats dispatched) of approximately 3.0 per cent when compared to the same quarter in 2014.

Air Canada continues to expect its full year 2015 system ASM capacity to increase by 9.0 to 10.0 per cent. For the full year 2015, Air Canada continues to expect an increase in the total number of seats dispatched (system) of 6.0 to 7.0 per cent and an increase in average stage length (system) of approximately 3.0 per cent when compared to the full year 2014. Approximately 55 per cent of the 2015 forecasted capacity increase will be through the continued lower-cost growth of Air Canada rouge® while approximately 38 per cent of the capacity growth will be targeted to international markets operated by the mainline carrier.

Air Canada now expects its full year 2015 domestic ASM capacity to increase by 3.0 to 4.0 per cent when compared to 2014 as opposed to the 3.5 to 4.5 per cent increase projected in Air Canada’s May 12, 2015 news release, primarily the result of minor schedule changes. The year-over-year growth in full year 2015 domestic ASM capacity is largely focused on the airline’s transcontinental services, reflecting, in large part, the positioning of certain Boeing 777 and 787 aircraft at Air Canada’s major hubs in Toronto and Vancouver. Furthermore, in 2015, an overlap of the aircraft brought into the fleet to replace the exiting Embraer 190 aircraft is expected to account for approximately 30 per cent of the projected domestic capacity growth in 2015. This overlap is designed to better match capacity with expected 2015 summer season demand. For the full year 2015, Air Canada now expects an increase in the total number of seats dispatched (domestic) of 2.0 to 3.0 per cent and an increase in average stage length (domestic) of approximately 1.0 per cent when compared to the full year 2014.

Adjusted CASM

For the third quarter of 2015, Air Canada expects adjusted CASM (which excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items) to decrease by 0.5 to 1.5 per cent when compared to the third quarter of 2014.

For the full year 2015, Air Canada now expects adjusted CASM to decrease 1.0 to 2.0 per cent from the full year 2014 as opposed to the decrease of 1.5 to 2.5 per cent projected in Air Canada’s May 12, 2015 news release, reflecting, in large part, the impact of a weaker Canadian dollar on U.S. denominated operating expenses.

Major Assumptions

Air Canada’s outlook assumes relatively low Canadian GDP growth for 2015. Air Canada also expects that the Canadian dollar will trade, on average, at C$1.30 per U.S. dollar in the third quarter of 2015 and C$1.27 for the full year 2015 and that the price of jet fuel will average 62 cents per litre for the third quarter of 2015 and 64 cents per litre for the full year 2015.

For the full year 2015, Air Canada also expects:

  • Depreciation, amortization and impairment expense to increase by $125 million from the full year 2014 as opposed to the increase of $100 million projected in Air Canada’s May 12, 2015 news release. The increase in projected depreciation, amortization and impairment expense is largely driven by the impairment charges recorded in the second quarter of 2015.
  • Employee benefits expense to increase $30 million from the full year 2014 (as opposed to the increase of $50 million projected in Air Canada’s May 12, 2015 news release). The lower expected increase in employee benefits expense is primarily driven by benefit plan amendments relating to U.S. post-retirement health plans which reduced employee benefits expense by $19 million in the second quarter of 2015.
  • Aircraft maintenance expense to increase $90 million as opposed to the $120 million increase projected in Air Canada’s May 12, 2015 news release. The lower expected increase in aircraft maintenance expense is mainly driven by the timing of engine maintenance events when compared to 2014 and certain contract amendments.

(1) Non-GAAP Measures

Below is a description of certain non-GAAP measures used by Air Canada in order to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under Canadian GAAP and do not have standardized meanings and may not be comparable to similar measures presented by other public companies. Refer to Air Canada’s Second Quarter 2015 MD&A for reconciliation of non-GAAP financial measures.

Adjusted net income (loss) and adjusted net income (loss) per diluted share are used by Air Canada to assess the overall financial performance of its business without the effects of foreign exchange, net financing income (expense) relating to employee benefits, mark-to-market adjustments on fuel and other derivatives and unusual items as these items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful. Air Canada also uses adjusted net income as a measure to determine return on invested capital.

EBITDAR is commonly used in the airline industry and is used by Air Canada to assess earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets.

Adjusted CASM is used by Air Canada to assess the operating and cost performance of its ongoing airline business without the effects of fuel expense, the cost of ground packages at Air Canada Vacations and unusual items, as such expenses may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.

Free cash flow is used by Air Canada as an indicator of the financial strength and performance of its business because it shows how much cash is available for such purposes as repaying debt, meeting ongoing financial obligations and reinvesting in Air Canada.

Return on invested capital (ROIC) is used by Air Canada to assess the efficiency with which it allocates its capital to generate returns. Return is based on adjusted net income (loss) (as referred to in the paragraph above), excluding interest expense and implicit interest on operating leases. Invested capital includes average year-over-year total assets, net of average year-over-year non-interest-bearing operating liabilities, and the value of capitalized operating leases (calculated by multiplying annualized aircraft rent by 7).

Notes:

(1)
Adjusted net income (loss) and adjusted net income (loss) per share – diluted are non-GAAP financial measures. Refer to section 16 “Non-GAAP Financial Measures” of Air Canada’s Second Quarter 2015 MD&A for additional information.
(2)
EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) is a non-GAAP financial measure. Refer to section 16 “Non-GAAP Financial Measures” of Air Canada’s Second Quarter 2015 MD&A for additional information.
(3)
Unrestricted liquidity refers to the sum of cash, cash equivalents, short-term investments and the amount of available credit under Air Canada’s revolving credit facilities. At June 30, 2015, unrestricted liquidity was comprised of cash and short-term investments of $3,021 million and undrawn lines of credit of $262 million. At June 30, 2014, unrestricted liquidity was comprised of cash and short-term investments of $2,615 million and undrawn lines of credit of $339 million.
(4)
Free cash flow (cash flows from operating activities less additions to property, equipment and intangible assets) is a non-GAAP financial measure. Refer to section 7.5 “Consolidated Cash Flow Movements” of Air Canada’s Second Quarter 2015 MD&A for additional information.
(5)
Adjusted net debt (total debt less cash, cash equivalents and short-term investments plus capitalized operating leases) is an additional GAAP financial measure. Refer to section 7.3 “Adjusted Net Debt” of Air Canada’s Second Quarter 2015 MD&A for additional information.
(6)
Return on invested capital (“ROIC”) is a non-GAAP financial measure. Refer to section 16 “Non-GAAP Financial Measures” of Air Canada’s Second Quarter 2015 MD&A for additional information.
(7)
Except for the reference to average number of FTE employees, operating statistics in this table include third party carriers (such as Jazz Aviation LP (“Jazz”) and Sky Regional Airlines Inc. (“Sky Regional”)) operating under capacity purchase agreements with Air Canada.
(8)
Adjusted CASM is a non-GAAP financial measure. Refer to section 16 “Non-GAAP Financial Measures” of Air Canada’s Second Quarter 2015 MD&A for additional information.
(9)
Reflects FTE employees at Air Canada. Excludes FTE employees at third party carriers (such as Jazz and Sky Regional) operating under capacity purchase agreements with Air Canada.
(10)
Average stage length is calculated by dividing the total number of available seat miles by the total number of seats dispatched.
(11)
Revenue passengers are counted on a flight number basis which is consistent with the IATA definition of revenue passengers carried.

Copyright Photo: Rob Rindt/AirlinersGallery.com. A beautiful portait of Boeing 787-8 Dreamliner C-GHPU (msn 35259) departing from Vancouver International Airport (YVR).

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LAN Airlines to introduce the Boeing 787 to Milan

LAN Airlines (Chile) (Santiago) will introduce the Boeing 787 Dreamliner on the Santiago – Sao Paulo (Guarulhos) – Milan (Malpensa) route on March 2, 2016 per Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 787-8 Dreamliner CC-BBI (msn 38480) departs from Los Angeles International Airport.

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Xiamen Air launches the Xiamen – Amsterdam route

Xiamen Airlines (Xiamen Air) (Xiamen) has launched its first route to Europe. The Chinese airline issued this statement:

Xiamen Air logo

On July 26, Xiamen Airlines officially launched the carrier’s very first intercontinental route, the Xiamen-Amsterdam route. The new route marks a key milestone in the airline’s implementation of its globalization strategy.

Xiamen Airlines will operate the new route, flight numbers MF811 and MF812, with a Boeing 787 Dreamliner featuring 4 seats in first class, 18 in business and 214 in economy. The flight departs Xiamen at 11:50 p.m. every Tuesday, Thursday and Sunday, and arrives at Amsterdam’s Schiphol at 5:45 a.m. the next day. The flight duration is 11 hours and 55 minutes. The return journey departs Amsterdam at 12:35 p.m. every Monday, Wednesday and Friday, and arrives in Xiamen at 5:30 a.m. the next day, with a flight duration of 10 hours and 55 minutes. The above are all local times, and were arranged to facilitate connections to other flights after passengers reach their destinations.

The new route complements KLM Royal Dutch Airlines’ existing Xiamen-Amsterdam route — also on a three-times-a-week schedule, signifying that, starting from July 26, there will be six direct flights between Xiamen and Amsterdam weekly.

Xiamen Airlines has upgraded both the air and ground services for the new intercontinental route, with a concerted effort on integrating Chinese cultural elements into its services. As an example, the new tableware for the first class and business class cabins are made of blanc de chine, and authentic highly-reputed lapsang souchong tea will be on offer in the two cabins.

Xiamen Airlines operates a fleet of 119 Boeing jets, which is the biggest all-Boeing fleet in China. The fleet now has 5 Boeing 787-8 Dreamliners, with the sixth to be delivered soon. As part of the expansion plans for further intercontinental routes originating from Fujian province, the airline has ordered 4 more advanced Boeing 787-9aircraft, forming a fleet of 10 Boeing 787s.

Chairman and general manager Che Shanglun explained that Xiamen Airlines will launch a direct Xiamen-Sydney route at the end of this year. Next year, the carrier plans to launch routes to North America, completing a route network covering Europe, America and Australia, and supporting China’s “One Belt, One Road” strategy by creating a “Silk Road in the Sky.”

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 787-8 Dreamliner B-2762 (msn 41542) taxies at Amsterdam.

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