Tag Archives: A320

Bangkok Air raises the security level at Bangkok, second quarter profit rises over 131%

Bangkok Airways (Bangkok Air) (Bangkok) has issued this statement following a terrorist bombing on Monday (August 17) at the Erawan shrine in Bangkok. 21 people died in the bomb blast. According to the Bangkok Post, 23 nations have now issued travel warnings for travel to Thailand. Here is the statement by the airline:

Bangkok Airways PCL has increased its security measures to ensure passengers’ highest safety.

Mr. Puttipong Prasarttong-Osoth, President of Bangkok Airways PCL commented,

“on behalf of everyone at Bangkok Airways, we would like to express our deepest condolences to those who have been affected by this unfortunate event.”

“However, we are monitoring the situation closely and have been cooperating with the Airport Authority of Thailand (AOT) to raise security measures at Suvarnabhumi Airport, all destination airports and at the airline’s own airports (Samui, Sukhothai and Trat) to a higher level to ensure the safety of its passengers and its staffs.”

“Bangkok Airways is in normal operations”, added Mr. Puttipong.

Read the full report: CLICK HERE

In other news, the company issued it operating results for the second quarter:

Bangkok Airways Public Company Limited announced its operating results for the second quarter of 2015 which has amounted to a net profit of 102.2 million baht ($2.8 million); up by 131.8 percent from the same period of the previous year.

Mr. Puttipong Prasarttong-Osoth, President of Bangkok Airways PCL commented that, “In the second quarter, total revenue of the company was 5,563.4 million baht, increased by 12.9 percent from the same period in the previous year. Net profit was reported at the amount of 102.2 million baht, mainly based on higher average fare and higher number of passengers. Available Seat Kilometers (ASK) ascended by 4.3 percent; our load factor was at 59.9 percent for this quarter. For the first six-month period, the company received total revenue of 12,297.3 million baht in which net profit was reported at 1,188.9 million baht.”

Mr. Puttipong continues, “The number of passengers of Bangkok Airways increased by 5.6 percent for the second quarter of 2015 in which our main market, Asia, particularly East Asia, has the highest growth. Despite the slow growth of Europeans traveling to Thailand, excluding the Russian, the company was able to maintain the sale growth from this market comparing to last year. The top 3 countries that the number of passenger has still been growing are Germany, United Kingdom and France.”

“In addition to that, Bangkok Airways has increased flight frequencies on Samui-Singapore route to 10 flights per week, and Samui-Kuala Lumpur route to 11 flights per week starting from 29 March 2015.

The additional frequencies adhere with our business strategy are to establish Samui airport as our second hub, followed by Suvarnnabhumi airport and to expand our route network in order to serve our codeshare partners from Australia and Southwest Pacific. During the second quarter, the company has entered into a codeshare agreement with Jet Airways which added our frequencies on Bangkok-Mumbai route from 1 flight to 3 flights per day. This certainly has provided more choices to the passengers as well as to increase the efficiency of our routes.” Mr. Puttipong added.

Recently, BA stocks has been added to numerous indexes which are MSCI Global Small Cap Indexes (effective since 29 May 2015.), FTSE SET Mid Cap index (effective since 22 June 2015), SET50 and SET100 indexes for the second half of 2015 (1 July – 31 December.) This helps make BA more known amongst investors around the world.

Currently, Bangkok Airways has a total of 29 aircrafts; 10 of turbo-prop ATR72-500/600s, 19 of Airbus A319s/A320s. The company will take delivery of another 2 to 3 aircrafts by the end of 2015 to serve high travel demands in the up-coming high season.

Copyright Photo: Richard Vandervord/AirlinersGallery.com. Airbus A320-232 HS-PGW (msn 2509) in the special Samui scheme taxies at Phuket.

Bangkok Air aircraft slide show:

IndiGo firms up its order for 250 Airbus A320neo aircraft – Airbus’ largest order by number

Airbus (Toulouse) has issued this statement about IndiGo (Delhi) by firming up its large Airbus A320neo Family order:

India’s largest domestic airline by market share, IndiGo celebrated their 9th birthday by firming up their last year’s commitment and ordering 250 A320neo Family aircraft. This historical aircraft purchase agreement was signed on the 69th Independence Day of India on the 15th of August, 2015.

IndiGo placed an order in 2005 for 100 A320s which have all now been delivered. In 2011 IndiGo became the first Indian operator to commit to the A320neo bringing their total to 280 Airbus aircraft. With today’s announcement, IndiGo has ordered 530 A320 Family aircraft with Airbus.

The A320neo “new engine option” incorporates many innovations, including latest generation engines and large Sharklet wing-tip devices, which together deliver 15 percent in fuel savings from day one and 20 per cent by 2020. This is equivalent to a reduction of 5,000 tonnes of CO2 per aircraft per year.

Image: Airbus.

IndiGo aircraft slide show:

Eurowings to add four new routes from Vienna

Eurowings (Dusseldorf) in February, through its parent (Lufthansa Group,) announced Vienna, Austria would be its first base outside of Germany:

“Following close consultation with Austrian Airlines (Vienna) and at the carrier’s own request, two Airbus A320 aircraft are being stationed at VIE initially, offering point-to-point connections on European routes. The aircraft are to fly in the colors of the new Eurowings. The aircraft will be staffed with crews from Austrian. This partnership is possible as a result of Austrian’s new collective agreement, which was entered into in December 2014 and offers additional prospects to the 900 pilots and 2,300 flight attendants.

With the new Eurowings brand, the Lufthansa Group is entering new markets in the price-sensitive leisure travel sector, thereby safeguarding its leading position in its home markets of Germany, Austria, Switzerland and Belgium. By the end of 2015, Eurowings and Germanwings along with other European airlines are to be united on a joint platform and should acquire new customers by offering low-cost short and long-haul services.”

In October, Eurowings will be taking over 55 routes from Germanwings along with the appropriate amount of aircraft and crews to fly the newly assigned routes.

Eurowings has now announced a further expansion at VIE with four additional routes starting on November 9 to Barcelona, London (Stansted), Palma de Mallorca and Rome (Fiumicino).

The new Eurowings will operate the Airbus A320s in Austria under a new Austrian AOC.

Eurowings aircraft slide show:

Virgin Australia to shift its Bali flights to Tigerair Australia

Virgin Australia Holdings Limited (Virgin Australia Group) (Virgin Australia Airlines and Tigerair Australia) (Brisbane) is making moves after it continues to reduce its losses overall.

Virgin Australia is dropping its leisure routes to Bali and Thailand and will replace the service with its lower-cost subsidiary Tigerair (Australia). The company is making this move in order to reduce its international losses that widened in the fiscal year to $69 million (AU).

Virgin Australia will cease flying from Adelaide, Melbourne and Perth to Denpasar, (Bali, Indonesia) in March 2016 and will instead use its no-frills Tigerair subsidiary on those routes.

Virgin Australia on February 1, 2016 is also canceling service to Thailand, where it currently operates the Perth – Phuket route five days a week

Virgin Australia outlined the route changes with this press release:

The Virgin Australia Group has announced plans to optimize its international network to deliver improved fleet utilization and meet customer demand on key trans-Tasman and short-haul international routes.

Tigerair Australia:

The Tigerair Australia brand will launch in the short-haul international market with Denpasar (Bali) as its first international destination to enable the Group to better cater to the changing dynamics in the region.

From March 23, 2016, Tigerair Australia will use three all economy configured Boeing 737-800 aircraft to offer the following services to Denpasar (Bali), subject to relevant regulatory and operational approvals being secured:

Adelaide-Denpasar: five return services per week
Melbourne-Denpasar: daily return services
Perth-Denpasar: daily return services
Members of Virgin Australia’s loyalty program Velocity Frequent Flyer will be able to redeem Velocity Points for seats on Tigerair Australia services to Denpasar.

Virgin Australia route withdrawals:

From March 23, 2016, Virgin Australia will withdraw from the following routes:

Adelaide-Denpasar: five return services per week
Melbourne-Denpasar: daily return services
Perth-Denpasar: eight return services per week

The last flights on these routes will operate on March 22, 2016.

From February 1, 2016, Virgin Australia will withdraw from the Perth-Phuket route, with the last flight operating on January 31, 2016.

Virgin Australia will continue to operate to Denpasar from Sydney, Brisbane and Port Hedland.

Virgin Australia route increases:

From October 25, 2015 onwards, Virgin Australia will increase capacity into New Zealand, in conjunction with our alliance partner Air New Zealand. Virgin Australia will also increase capacity to Fiji and the Solomon Islands to meet customer demand.

These increases represent more than 52,000 additional seats on trans-Tasman and Pacific routes during the 2016 financial year.

Additional capacity to be operated by Virgin Australia:

Sydney-Christchurch: addition of two return services per week from October 25, 2015
Melbourne-Christchurch: addition of one return service per week from November 6, 2015
Additional seasonal capacity to be operated by Virgin Australia:
Brisbane-Auckland: addition of one return service per week between October 26, 2015 and December 13, 2015, two return services per week between December 14, 2015 and January 24, 2016, and one return service per week between February 29, 2016 and March 27, 2016
Brisbane-Dunedin: addition of one service per week from December 18, 2015 to January 22, 2016
Brisbane-Wellington: addition of one service per week from December 14, 2015 to January 24, 2016
Brisbane-Apia: addition of one service per week from December16, 2015 to January 13, 2016
Brisbane-Honiara: addition of one service per week from June 22, 2015 to January 25, 2016
Brisbane-Nadi: addition of one service per week between December 12, 2015 and January 23, 2016
Sydney-Nadi: upgrade of Saturday Boeing 737-800 services to Airbus A330 services from June 20, 2015 to October 24, 2015 and from December 12, 2015 to January 23, 2016.
An additional Boeing 737-800 service will also operate on Saturday December 26, 2015 and Saturday January 3, 2016

These decisions came as the company reported its fiscal year results:

Virgin Australia Holdings Limited (Virgin Australia today reported an Underlying Loss Before Tax of $49.0 million (all dollar amounts are in Australian dollars) for the 2015 financial year, including the impact of 100 per cent consolidated Tiger Airways Australia Pty Limited (Tigerair Australia) performance from October 17, 2014.

Virgin Australia Group Chief Executive Officer John Borghetti said: “The Virgin Australia Group has delivered a significant improvement in performance for the 2015 financial year, which reflects the positive trajectory of the overall business”.

“Over the past financial year, the Group’s Return on Invested Capital has increased from 1.4 to 6.1 per cent. Improving our Return on Invested Capital will continue to remain a strong focus for the Group. I’m pleased to confirm that based on current market conditions, all fundamental business metrics are on track for the Group to return to profitability and report a Return on Invested Capital in line with its cost of capital for the 2016 financial year. The Virgin Australia Group’s current cost of capital is approximately 10 per cent.

“Unit revenue is increasing, unit costs are decreasing and operational performance and customer satisfaction continue to improve.

“Unit cost declines are a result of the Group’s disciplined execution of our $1 billion cost reduction program. The Group has continued to decrease Underlying CASK while investing in the customer experience. Additionally, the full acquisition of Tigerair Australia has given us further capability to lower the Group’s unit costs.

“The Group is ahead of our target of $1 billion of cumulative cost savings by the end of financial year 2017. We are now on track to achieve in excess of $1.2 billion in cumulative cost savings by this date, excluding fuel pricing and hedging benefits.

“The Group’s balance sheet is also in a much stronger position, with the highest ever full year unrestricted cash balance, a $225.8 million improvement in Operating Cash Flow and a 20 per cent improvement in financial leverage on the 2014 financial year.

“I’m pleased to report that we are seeing strong results from the transformation of Virgin Australia Domestic. The business reported an Underlying EBIT of $111.1 million for the 2015 financial year, an improvement of $210.1 million on the prior corresponding period.

“Over the 2015 financial year Virgin Australia Domestic has continued to drive positive yield growth, led the major carriers in On Time Performance and achieved record customer satisfaction with the end-to-end customer experience . Based on results reported to date since financial year 2013 , Virgin Australia Domestic has narrowed the Revenue per Available Seat Kilometre differential versus our major competitor and retained our strong cost advantage. The business is well positioned for future growth.

“Whilst there are challenges on the international front, we are confident with our improvement plan.

“The Group’s unit revenue gains combined with our continued leadership on cost will drive earnings growth going forward. We now have a strong balance sheet from which to execute our strategy and a powerful portfolio of growth businesses in Velocity Frequent Flyer, Charter, Cargo and Tigerair Australia, that will support the Group’s ongoing earnings development and diversification.

“Our people have demonstrated enormous skill and dedication in their disciplined execution of the Virgin Vision strategy”, Mr Borghetti said.

Group Financial Performance

The Group reported an Underlying Loss Before Tax of $49.0 million for the 2015 financial year, an improvement of $162.7 million on the 2014 financial year. Taking into account 100 per cent of Tigerair Australia performance on a like-for-like basis, the 2015 financial year underlying performance represents a $213.0 million improvement over the prior corresponding year.
The Statutory Loss After Tax for the 2015 financial year was $93.8 million, an improvement of $260.0 million on the prior corresponding period.

Return on Invested Capital for the 2015 financial year was 6.1 per cent, an improvement of 4.7 percentage points on the prior corresponding period.

Total Group Revenue and Income increased 10.3 per cent to $4,749.2 million compared to the 2014 financial year, inclusive of $284.1 million of Tigerair Australia revenue since 17 October 2014.

Group Underlying Cost per Available Seat Kilometre (CASK) reduced 6.4 per cent excluding fuel and foreign exchange for the 2015 financial year compared with the prior corresponding period. Virgin Australia CASK reduced 4.6 per cent excluding fuel and foreign exchange over the same period.

Several major cost reduction initiatives contributed to this result, including Airbus A330 fleet rationalisation, sales channel optimisation, insourced line maintenance, major fuel consumption initiatives and savings in procurement.

The decline in oil prices led to a benefit of approximately $60 million for the Virgin Australia Group, compared with the same period in the 2014 financial year, however this was partly offset by the approximately $35 million negative impact of a weaker Australian Dollar on operating costs. The Group derived a hedging benefit of approximately $31 million in the prior corresponding period which impacted the year on year gain. Based on the Virgin Australia Group’s current hedging position and market rates, the Group expects a fuel pricing net benefit of approximately $162 million in the 2016 financial year. However this is expected to be offset by the approximately $99 million adverse impact of a weaker Australian Dollar, resulting in a total expected net benefit of approximately $63 million in the 2016 financial year.

The Group incurred $70.2 million of restructuring and transaction costs during the 2015 financial year as a result of fleet initiatives, costs associated with various transactions and other transformation initiatives. The business also incurred $27.4 million in hedging ineffectiveness costs and time value movement on cash flow hedges.

The Virgin Australia Group finished the year with a total cash balance of $1,028.5 million and an unrestricted cash balance of $718.9 million, up $244.7 million and $177.9 million respectively on 30 June 2014. The Group’s financial leverage ratio improved from 7.5x in June 2014 to 5.9x in June 2015 and is on track to achieve a further 25 to 30 per cent reduction by the end of financial year 2017.

The Group continues to invest in the latest generation of aircraft to support fuel efficiency, operational performance and customer satisfaction. During the 2015 financial year, the Group converted four Boeing 737-800 deliveries for 2016 into Boeing 737-MAX aircraft. Consequently the Virgin Australia Group will now receive 40 deliveries of Boeing 737-MAX aircraft from 2018 onwards.

Segment Performance

Virgin Australia Domestic

Virgin Australia Domestic reported Underlying EBIT of $111.1 million for the 2015 financial year, an improvement of $210.1 million on the prior corresponding period. Operating margins improved from -3.1 per cent to +3.4 per cent.

Revenue increased by 4.8 per cent on the 2014 financial year on capacity growth of 1.3 per cent, driven by growth in the Corporate and Government, Charter, Interline and Codeshare segments. The business remains on track to reach its target of 30 per cent of revenue from the Corporate and Government segment by 30 June 2017.

Virgin Australia Domestic Yield increased by 5.2 per cent compared to the 2014 financial year; driven by success in attracting increased share of higher-yielding market segments.

Virgin Australia Domestic led the major carriers in On Time Performance for the 2015 financial year, achieving 87.9 per cent of flights on time.

External research confirmed that Virgin Australia Domestic achieved record levels of satisfaction with the end to end customer experience, Domestic Business Class service and the lounge experience. The business also won a number of prestigious awards during the period, including Best Airline Staff Service Australia/Pacific by the Skytrax World Airline Awards for the fifth consecutive year.

In the 2015 financial year Virgin Australia Domestic completed the transition to a contemporary full service airline, including:

The rollout of complimentary food, baggage and entertainment across the mainline domestic network;
Completion of wireless in-flight entertainment roll-out across the entire Boeing 737-800 and Embraer 190 fleets;
Launch of Darwin and Alice Springs lounges, expansion of Brisbane lounge and launch of Premium Exit at Melbourne Airport;
A new international standard Business Class service on the Airbus A330s; and
The painting of the last red Virgin Blue aircraft in the new Virgin Australia livery.

Virgin Australia International

Virgin Australia International reported an Underlying EBIT of -$68.9 million for the 2015 financial year, a decline of $22.8 million on the prior corresponding period.

Virgin Australia International revenue decreased by 3.3 per cent compared to the 2014 financial year on a capacity decline of 0.4 per cent.

Increased competitive pressure, particularly in the South East Asian and long-haul markets, constrained yield recovery during the financial year.

In recent months, the Virgin Australia Group has put into place the first phase of initiatives to improve the performance of the international business, including introducing Business Class on the Tasman and Pacific Islands routes to drive further unit revenue growth; integrating the management of the New Zealand operations into the rest of the international business; consolidating its Los Angeles flying from three to two Australian hubs; and announcing the introduction of new Business Class suites on the fleet of long-haul Boeing 777 aircraft to drive further yield growth.

As a result, Virgin Australia International has begun to show improvement, with Underlying EBIT improving by $2.4 million in the second half of the 2015 financial year compared to the prior corresponding period.

Today Virgin Australia has announced the second part of the plan to improve performance. This involves launching the Tigerair Australia brand in the short-haul international market, to enable the Group to better cater to the changing dynamics in the region.

It also enables Virgin Australia International to redeploy some capacity to meet increased customer demand on strong-performing routes and to withdraw Virgin Australia International from routes where market structures have changed.

Charter and Cargo

Virgin Australia Charter continued to deliver revenue growth during the 2015 financial year.

Despite the slowdown in the resources industry, demand from Virgin Australia Charter’s existing blue chip client base continued to grow during the 2015 financial year and the business won several significant new resources contracts from competitors. This growth has been supported by the addition of four Fokker 100 aircraft, expanding the charter fleet from 20 to 24 aircraft.

The charter customer experience was also further aligned with Virgin Australia’s mainline operations, including the installation of check-in kiosks and gate scanners at three of its largest charter airports.

Virgin Australia Cargo is the Group’s newest business division. During the 2015 financial year, the Group’s dedicated cargo team implemented a state-of-the-art IT system, which will enable the division to optimise cargo capacity and provide tracking and customised reporting to customers.

The business officially launched on 1 July 2015, providing services for major freight distributors, corporate shippers and individuals. Virgin Australia Cargo has already signed several major clients.

Velocity Frequent Flyer

Velocity Frequent Flyer reported an 18.5 per cent increase in revenue and an 8.0 per cent increase in Underlying EBIT to $81.2 million for the 2015 financial year.

Revenue and earnings growth were driven by record annual growth in members, strong member engagement and new partnerships. Velocity invested significantly in people and systems in the 2015 financial year which will drive stronger earnings growth going forward, with a minimum of 15 per cent earnings growth per annum expected in the 2016 financial year and the 2017 financial year.

During the 2015 financial year, Velocity added the highest number of members since the program’s launch, with an average daily join rate of more than 2,400 per day, up from around 1,900 during the 2014 financial year. This significant increase was supported by Velocity’s Australian-first partnership with one of the country’s largest fuel retailers, BP, with an average of more than 4,300 people joining the program per day during the last quarter of the 2015 financial year.

Velocity continued to achieve numerous awards during the 2015 financial year, including winning three prestigious accolades at the Freddie Awards, in which Velocity has been recognised as having Best Redemption Ability in the Asia-Pacific region for three consecutive years. The program also ranked as number two globally for Seat Availability in the Ideaworks SwitchFly Survey.

In July 2015, Velocity acquired a leader in the data and analytics field, Torque Data, enabling the business to significantly expand its capabilities in this field and support its ongoing growth.

Tigerair Australia

Tigerair Australia recorded an EBIT loss of -$8.6 million from 17 October 2014 to 30 June 2015. On a standalone basis, it recorded an improvement of $42.7 million on the prior corresponding period.

The business achieved significant progress in driving incremental revenue growth and delivering cost synergies, with approximately $7 million in benefits achieved as a result of the completion of the Group’s full acquisition of Tigerair Australia.

During the 2015 financial year Tigerair Australia’s average load factors improved by 1.8 percentage points to 86.1 per cent, on capacity growth of 9.6 per cent.

The business introduced a number of initiatives to improve the customer experience while streamlining costs, including check-in kiosks at major airports and an iPad-based mobile app that makes the check-in and boarding process more efficient while enabling additional revenue opportunities. The most recent external survey results show customers were 75 per cent satisfied overall with their Tigerair Australia experience, up 11 percentage points since October 2014.

Tigerair Australia delivered a significant improvement in On Time Performance, with average departures On Time Performance increasing by more than six percentage points during 2015 financial year, finishing the year with 89.0 per cent of flights on time in June and outperforming its major competitor in five of the first six months of the 2015 calendar year .

Conclusion and Outlook

Virgin Australia Group Chief Executive Officer John Borghetti said: “Our people and their dedication to going above and beyond in their day-to-day roles is central to our success in delivering on our Virgin Vision strategy. I would like to thank all of our team members for their commitment to our customers and their tireless efforts in bringing to life the Virgin Vision.

“As a result of the progress on our strategy to date, we are now on a positive trajectory and on track to significantly improve financial performance again for the 2016 financial year.

“Based on current market conditions, all fundamental business metrics are on track for the Group to return to profitability and report a Return on Invested Capital in line with its cost of capital for the 2016 financial year. The Virgin Australia Group’s current cost of capital is approximately 10 per cent”, Mr Borghetti said.

Copyright Photo: John Adlard/AirlinersGallery.com. Tigerair’s Airbus A320-232 VH-VNQ (msn 5218) taxies at Sydney in the new 2013 livery.

Virgin Australia aircraft slide show:

Tigerair Australia aircraft slide show:

Tigerair (Australia) route map. The lower-cost Tigerair subsidiary is likely to grow with its lower cost basis.

Frontier Airlines introduces “The Works”, a new fare bundle

Frontier Airlines (2nd) (Denver) today unveiled a new fare bundle called “The Works”:

Frontier Airlines, the airline that recently introduced the widest economy seat in the U.S. airline industry, today unveiled THE WORKS sm. The new bundle, containing Frontier’s most popular options for one low price, saves customers 60 percent or more and assures the best value with several guarantees. Foremost is Frontier’s industry-leading guarantee that your carry-on will be accommodated in the cabin, a frustration of customers on many other airlines.

How THE WORKS sm works:

— Available at FlyFrontier.com at time of initial booking
— Prices range from $49 to $69 each-way, based on round-trip purchase
— You get:
o One carry-on bag
o One checked bag
o Best available seat* including Stretch and Exit Row options
o Full Refundability when canceled at least 24 hours prior to scheduled departure
o No change fees
o Priority boarding **

With THE WORKS sm, the following is GUARANTEED:

— Your carry-on bag will be accommodated on board
— Best available seat on the flight*
— Zone 1 boarding
— Get your money back when canceled at least 24 hours prior to scheduled departure
— Want to make a change? Flexibility
— Furry animal on your aircraft tail***

“Unbundling has lowered fares for millions of fliers, but some want it all for one low price, and THE WORKS sm gives them that choice,” said Frontier Airlines President Barry Biffle. “NO ONE ELSE offers this many features for such a low price, and our new carry-on guarantee ends bag separation anxiety.”

How much can customers save with THE WORKS sm? On nonstop flights, prices range from $49 to $69 each-way, based on round-trip purchase, with a savings up to $100 each way. For connecting flights, prices range from $57 to $83 each-way, based on round-trip purchase, with a savings up to $110 each way.

The savings are even more noticeable when comparing Frontier to the competition which charge up to a $200 change fee, in excess of $50 for priority boarding and up to $125 for additional legroom in coach.

***Furry animal guarantee excludes all non-furry animals on our planes. Fare differences may apply when changing your flight. All bags must conform to published dimension and weight requirements. THE WORKS sm price varies by route, is each-way and based on round-trip purchase by Aug. 31, 2015. If we fail to get your size-required carry-on bag in the cabin, we will refund you the current website carry-on charge. All change and refund requests must be made on-line at least 24 hours prior to scheduled departure. *Purchase includes access to the best available seat at time of booking. **Priority boarding is only available if a carry-on bag is selected.

Copyright Photo: Royal S. King/AirlinersGallery.com. Airbus A320-214 N228FR (msn 5526) with Orville, the red Cardinal, taxies to the runway at Las Vegas.

Frontier Airlines aircraft slide show:

Wizz Air posts a fiscal first quarter net profit of $36.1 million, up 12.5%

Wizz Air (Hungary) (Budapest) has reported a first quarter net profit of €32.9 million ($36.1 million), up 12.5% compared to €29.2 million ($32.0 million) in the same quarter a year ago.

Revenue was up 12.7% at €332.5 million ($365.0 million), compared to €295.2 million ($324.1 million) for the same quarter a year ago.

The airline also gave guidance on its full-year outlook:

With the continued expansion of our network, Wizz Air expects to grow capacity by around 17% in the 2016 financial year, spread evenly across the year. We continue to believe that there will be no earnings benefit from the decline in fuel prices over the last 12 months as the US dollar has strengthened against the euro over the same period and, as expected, lower fuel prices are feeding through to lower unit revenues. We expect the downward trend in unit revenues to continue for the foreseeable future.

Nonetheless, our forward bookings indicate robust demand for the peak summer period. Increased visibility over this important trading period means we now expect to deliver an improved outcome for the full year. Our current expectation is for Group post tax profit (excluding unusual and exceptional items) to be in the range of €175 million and €185 million. While we have limited visibility on the second half of the year, our current expectations for full year performance are summarized below:

For the second quarter (July to September 2015) of the 2016 financial year, we expect to grow capacity, in terms of ASKs, by around 16% and anticipate a modest rise in load factor compared to the same period in the prior year. Despite continued downward pressure on unit revenues, both operating margins and underlying net profit margins are expected be modestly ahead of the prior year.

József Váradi, Wizz Air Chief Executive said:

“The first quarter has been an exciting period for Wizz Air. We have continued to grow our network and increase our passenger numbers throughout the period while maintaining an industry leading, ultra-low cost base. Today we are pleased to announce a record set of results for the first quarter with a strong performance against all key operating and financial performance measures. We are particularly pleased to have announced the signing of a memorandum of understanding relating to an order, subject to shareholder consent, for 110 Airbus A321 neo aircraft, worth in excess of $12.5 billion at current list prices. This order will provide us with aircraft to continue delivering strong growth for the next decade.

We continue to deliver against our ambition to make safe, reliable, affordable air travel available to everyone in Central and Eastern Europe. Our ultra-low cost model gives us a clear cost advantage versus most of our rivals, including many other low cost airlines, and as a result we are able to offer our passengers low fares and sustain a relatively high growth rate compared to other carriers. We have a strong balance sheet, proven management team, best-in-class fleet and leading market position in CEE. This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders”.

Read the full report: CLICK HERE

The company also gave additional details on its latest planned order with Airbus:

On June 18, 2015 the Company announced that it had signed a memorandum of understanding (MOU) with Airbus S.A.S. to purchase 110 A321neo aircraft (below), with the first deliveries in 2019. The memorandum of understanding includes an option to purchase up to 90 A321neo additional aircraft and provides for the cancellation of 10 A320ceo due for delivery in 2018 under existing agreements. Wizz Air also has the right to substitute A320neo aircraft for A321neo aircraft depending on its needs. Completion of the order will be subject to the successful negotiation of a final purchase agreement and, thereafter, to Wizz Air shareholder approval.

This order will enable Wizz Air to deliver its fleet expansion plan and replace over 50 aircraft scheduled to leave the fleet between 2019 and 2024. By the end of this period Wizz Air expects to have a fleet totalling 154 aircraft, with significant flexibility to adjust up or down subject to market conditions. Apart from providing the capacity necessary to serve the long term growth potential of the CEE market, the order will provide for significantly lower operating costs through cabin innovations, the latest engine technology and other efficiency improvements. As with the 230-seat A321ceo, the first of which will be delivered later this year, the 239-seat A321neo will be deployed primarily on higher volume routes.

In other news, Wizz Air has announced an upgrade to its first-to-board Priority Boarding service to include the option of bringing on board a small personal item. This continues Wizz Air’s tradition of adding services designed to enhance passenger convenience and satisfaction.

With the upgrade, passengers with Priority Boarding, purchased as a stand-alone option or as part of a Plus Fare or WIZZ Privilege Pass, will have the choice to bring a small personal item on board in addition to either a small or large cabin bag.

Priority Boarding, which allows passengers to board their flight ahead of general boarding, can be added to Basic Fares for just €3 per seat and flight if purchased online, €4 if purchased at the airport.

The Plus Fare, which includes Priority Boarding, was launched in May 2015 to address the needs of comfort conscious travellers and comprises the flight fare, seat selection including premium seats, airport check-in, WIZZ Flex for flexibility on flight changes, a large cabin bag, and one checked bag.

The WIZZ Privilege Pass was launched in January 2014 as a yearly membership program for frequent travellers. For an annual fee of €99, pass holders enjoy seat selection including premium seats and unlimited priority boarding and a large cabin bag on every flight.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A320-232 WL F-WWDL (msn 6662) at Toulouse became HA-LYS on delivery. It is painted in the new 2015 livery.

Wizz Air aircraft slide show:

Citilink Airbus A320 exits the runway at Padang on landing in the rain, three injured

Citilink (subsidiary of Garuda Indonesia) (Jakarta) Airbus A320-214 PK-GQG (msn 6333) operating flight QG 970 on August 2 from Jakarta (CGK) to Padang (PDG) with 174 passengers and crew members left the runway on landing at Padang in the rain. The aircraft was evacuated using the emergency chutes. Three people were injured according to Reuters. The incident also shut down the airport in western Indonesia.

Read the full report: CLICK HERE

Twitter photo by Gerry Soejatman.

Citlink aircraft slide show:

https://airlinersgallery.smugmug.com/Airlines-Asia-1/Airlines-Asia1-AE/Citilink-Garuda-Indonesia

Video:

Delta set new records in July, upgrades its Airbus A319 and A320 fleets

Delta Air Lines (Atlanta) issued this report on its busy summer season:

July is the only month in which each day is a part of Delta’s busy summer schedule. So as July wraps up – and with 17 days remaining in the summer schedule – here are nine amazing facts to keep in mind the next time you see a Widget-branded aircraft soaring overhead.

Delta’s summer schedule begins in early June and runs through mid-August.

1. July 31 set an all-time single-day bookings record of more than 620,000 customers. That’s as if the entire population of Portland, Oregon, booked to fly Delta in one day.

2. Nearly 2,200 more flights are scheduled so far in summer 2015 than the same period in summer 2014, a 0.7 percent increase.

3. Reliability on Delta Connection – the airline’s group of regional carriers – is dramatically improving: there have been 1,400 fewer Delta Connection cancellations this summer compared to the same period last summer.

4. The Delta system’s “completion factor” – days without any canceled flights – is 99.02%, 0.44 percentage points better than the same period last summer. That’s an amazing 1,308 fewer cancels than in summer 2014. And it includes both mainline flights and Delta Connection.

5. In June, Delta went 139.2 consecutive hours without a mainline cancellation; the closest streak during a summer schedule was June 2014 – 80.3 consecutive hours

6. Twenty-one days of 100 percent mainline completion factor so far in summer 2015, compared with 12 during the same time period in 2014.

7. Delta’s mainline aircraft numbers nearly 800 for the summer operation, including 41 737-900 ERs and 71 Boeing 717-200s.

8. TechOps is moving maintenance performance to new heights:

Mainline maintenance “completion factor” of 99.97 percent.
Maintenance on-time departure performance of 96.70 percent, best-ever for a summer schedule.

9. Year-to-date, Delta mainline has transported more than 2.2 billion pounds of checked bags and 987 million pounds of cargo freight.

In other news, Delta is revamping its Airbus A319 (above) and A320 fleets:

Delta will debut its latest single-aisle jet to receive a nose-to-tail interior modification this week—the first of 57 Airbus A319s to receive the state of the art upgrade.

The 132-seat aircraft is the latest in a series of upgrades coming to Delta’s domestic narrowbody fleet and follows just a few short months after Ship 3235 rejoined the flight line.

Airbus A320 interior

Panasonic in-flight entertainment at every seat (above), large pivoting overhead bins capable of accommodating 60 percent more carry-on bags (below), new galleys and an innovative, pod-like overhead passenger service unit highlight just a few of the new amenities designed by Zodiac Aerospace that Delta customers will enjoy. The 9 inch high definition seat-back entertainment screens offer more content than any other domestic carrier. Each seat also as 110v and USB power to plug in electronics in flight.

The airline is the first in the world to receive the interior modifications on both Airbus fleets.

All 126 A320 and A319 aircraft will be retrofitted with the new interior by summer 2017. The larger of the two jets, the A320, will also receive in-flight entertainment, though not initially, through 2018.

Many of Delta’s Boeing 757 jets are receiving interior enhancements as part of the airline’s more than $770 million investment in the domestic fleet to provide a more consistent customer experience.

Fleet:

Photos: Delta Air Lines. All 126 of Delta’s Airbus A319 and A320s are undergoing interior upgrades.

Copyright Photo below: Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-114 N330NB (msn 1549) departs from Los Angeles International Airport.

Delta aircraft slide show (current livery only):

Virgin America produces a second quarter GAAP net profit of $65.0 million

Virgin America (San Francisco) today reported its financial results for the second quarter of 2015. Key highlights from the second quarter include:

Second quarter 2015 net income was $64.4 million excluding special items1, an increase of $27.5 million from the second quarter of 2014. Operating income and operating margin excluding special items were $67.1 million and 16.7 percent, respectively.
On a GAAP basis, net income was $65.0 million. Operating income and operating margin on a GAAP basis were $67.7 million and 16.9 percent, respectively.
Fully diluted earnings per share excluding special items was $1.46. On a GAAP basis, fully diluted earnings per share was $1.47.

“Our latest quarterly results are an affirmation of Virgin America’s business model – specifically, they demonstrate that we can deliver a better product and guest experience while also generating strong financial returns,” said David Cush, Virgin America’s President and Chief Executive Officer. “The progress we have made on financial performance over the past two years is remarkable, and we continue to outperform domestic industry unit revenue trends. Our guests love the outstanding product and service that our teammates provide and it shows in our financial results.”

The airline continued:

Second Quarter 2015 Financial Highlights

Operating Revenue: Total operating revenue was $400.9 million, an increase of 0.5 percent over second quarter of 2014.
Revenue per Available Seat Mile (RASM): Passenger revenue per available seat mile (PRASM) increased 0.5 percent compared to the second quarter 2014, to 11.24 cents. Year-over-year PRASM growth was driven by a 0.2 point increase in load factor and a 0.3 percent increase in yield. Total RASM increased 0.6 percent year-over-year. Virgin America’s PRASM was positively impacted by a $3.2 million adjustment related to Elevate loyalty revenue, which increased PRASM by 0.9 percent.
Cost per Available Seat Mile (CASM): Total CASM excluding special items decreased 5.1 percent compared to the second quarter of 2014, to 10.43 cents. Decreases in fuel costs and reduced heavy maintenance activity contributed to the decline in CASM, partially offset by increases in salaries, wages and benefits. Salaries, wages and benefits costs included a $6.7 million accrual for teammate profit sharing and related payroll taxes. CASM excluding special items, fuel costs and profit sharing for the quarter increased 7.1 percent year-over-year, to 7.27 cents.
Fuel Expense: Virgin America realized an average economic fuel cost per gallon including taxes and the impact of hedges of $2.20, which was 29.3 percent lower year-over-year. This amount includes certain fuel expense adjustments described as special items below.
Special Items: Special items in the second quarter of 2015 relate to a net $0.6 million adjustment for fuel hedges that settled during the second quarter of 2015 but for which unrealized gains or losses had been previously recorded under GAAP and mark-to-market adjustments for fuel hedges that mature subsequent to June 30, 2015 which did not qualify for hedge accounting treatment.
Operating Income: Second quarter 2015 operating income excluding special items was $67.1 million, an increase of $20.0 million as compared to 2014. The Company’s operating margin excluding special items of 16.7 percent improved by 4.9 points year-over-year.
Net Income: Net income excluding special items for the second quarter increased by $27.5 million year-over-year to $64.4 million.
Fully Diluted EPS: Fully diluted earnings per share excluding special items was $1.46 for the second quarter of 2015. Second quarter 2015 fully diluted earnings per share was $1.47 on a GAAP basis.
Capacity: Available seat miles (ASMs) for the second quarter of 2015 remained flat year-over-year compared with the second quarter of 2014. Virgin America ended the quarter with 53 Airbus A320-family aircraft, unchanged from the second quarter of 2014. Subsequent to quarter end, the Company took delivery of the first of five Airbus A320 aircraft scheduled to be delivered in 2015.
Liquidity: Unrestricted cash was $500.5 million as of June 30, 2015. Virgin America benefited from the release of cash collateral held by its credit card processors in addition to strong operating cash flow performance to generate a net increase of $82.2 million in unrestricted cash during the quarter. The new agreement with its credit card processors also allowed the Company to terminate a $100 million letter of credit facility, resulting in ongoing annual savings of approximately $5.5 million per year.

“Virgin America made great strides in improving its balance sheet and financial position during the second quarter of 2015,” said Peter Hunt, Virgin America’s Chief Financial Officer. “We increased our unrestricted cash balance by $82 million during the quarter thanks to strong operating cash flow and the release of collateral held by our credit card partners. We also terminated a financing facility that will save us over $5 million in financing costs annually. In addition, we arranged bank debt financing for five A320 aircraft deliveries occurring later in 2015 at interest rates that will average under five percent. These accomplishments will continue to reduce Virgin America’s cost of capital and position us for future earnings growth.”

Second Half 2015 Outlook

The Company’s expectations for the second half of 2015 and full year 2016 are based on currently available information. These expectations are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. You should not place undue reliance upon these expectations.

The Company expects capacity, as measured by available seat miles, to increase by approximately 2.0 percent to 3.0 percent for the third quarter of 2015 as compared to the third quarter of 2014. Based on current revenue trends, the Company expects PRASM to decrease between 2.0 percent and 4.0 percent versus the third quarter of 2014. The Company expects CASM excluding fuel and profit sharing to increase between 10.5 percent and 11.5 percent versus the third quarter of 2014. CASM excluding fuel and profit sharing is increasing in the third quarter due primarily to Virgin America’s previously announced pay and benefit initiatives that were implemented earlier in the year. Third quarter CASM excluding fuel and profit sharing will also be impacted by a decrease in average stage length year over year of approximately 8.0 percent resulting from previously implemented capacity at Dallas — Love Field. In addition, the company expects to incur additional maintenance costs during the quarter related to an engine maintenance overhaul.

Based on Virgin America’s hedge portfolio and current market prices for aviation fuel products, the Company expects Virgin America’s economic fuel cost per gallon inclusive of related taxes and hedge costs to average between $1.90 and $2.00 for the third quarter of 2015. This number may change depending on fluctuations in market prices for jet fuel during the quarter.

Virgin America is scheduled to take delivery of five A320 aircraft during the second half of 2015, and expects to place four aircraft into operational service prior to year-end. The Company currently expects fourth quarter 2015 capacity to increase between 9.0 percent and 10.0 percent as compared to the fourth quarter of 2014. In addition, the company expects CASM excluding fuel and profit sharing to increase between 2.0 percent and 3.0 percent for the fourth quarter of 2015.

2016 Initial Outlook

The Company has completed its preliminary fleet and capacity plans for 2016. Virgin America currently expects to take delivery of an additional five A320 aircraft between January and June 2016. In addition, Virgin America does not expect to retire any existing aircraft from its fleet, ending 2016 with 63 aircraft in its operating fleet.

Further, the Company currently expects capacity, as measured by available seat miles, to increase between 13% and 15% for the full year 2016. The Company is also targeting for its CASM excluding fuel costs and profit sharing to decrease between 1% and 2% for the full year 2016 based on these fleet and capacity projections.

1 Please see “GAAP to Non-GAAP Reconciliations” for reconciliations of non-GAAP financial measures used in this release and the reasons management uses these measures.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Virgin America will end 2016 with 63 Airbus A320 Family aircraft. Airbus A320-214 N844VA (msn 4851) taxies to the runway at Seattle-tacoma International Airport bound for the San Francisco hub.

Virgin America aircraft slide show:

Virgin America Route Map (click the map for the full size):

Frontier announces new routes from Orlando and Las Vegas

Frontier Airlines (2nd) (Denver) is adding new routes from the two biggest leisure markets in the United States, Orlando and Las Vegas.

Today the carrier announced two new routes from Orlando to both Indianapolis and Los Angeles.

From Las Vegas, the ultra low-fare carrier is adding four new routes to Houston (Bush Intercontinental), Miami, Milwaukee and San Francisco.

Additionally, the airline will start new service from Philadelphia to both Fort Myers and Montego Bay.

The new routes begin on October 25.

The company issued this statement on the new service:

Frontier Airlines will add new nonstop service in leisure markets across its network with the addition of new flights in eight cities throughout the United States and Caribbean. This new service begins October 25.

Four new cities from Las Vegas

Frontier will add four daily nonstop flights between Las Vegas and Miami, Milwaukee, Houston and San Francisco. These flights will operate daily on Frontier’s fleet of Airbus A320 family aircraft. The addition of the four new cities brings Frontier’s nonstop destinations from Las Vegas to 13. Currently, Frontier serves Atlanta; Austin Texas; Chicago O’Hare; Cleveland; Cincinnati; Denver; Orlando; St. Louis and Washington — Dulles from Las Vegas.

Four new markets in Florida and the Caribbean

Frontier also will add new service between Orlando and Indianapolis and Los Angeles as well as adding new service between Philadelphia and vacation destinations, Fort Myers and Montego Bay. From Orlando the number of nonstop Frontier destinations will increase to 12, more than doubling its level of service in the past year.

New Service Summary:

LAS VEGAS (LAS) — HOUSTON (IAH)
F9 1238 Leave LAS: 2:30 p.m. Arrive IAH: 7:30 p.m.
F9 1239 Leave IAH: 9 p.m. Arrive LAS: 10:25 p.m.
Aircraft: A319
Frequency: Daily

LAS VEGAS-MIAMI (MIA)
F9 1232 Leave LAS 11:20 p.m. Arrive MIA: 6:45 a.m. (+1 arrives next day)
F9 1233 Leave MIA 9 a.m. Arrive LAS: 11:20 a.m.
Aircraft A319
Frequency: Daily

LAS VEGAS-MILWAUKEE (MKE)
F9 1226 Leave LAS: 1:30 p.m. Arrive: MKE 6:55 p.m.
F9 1227 Leave MKE: 6:40 p.m. Arrive: LAS 8:40 p.m.
Aircraft A319
Frequency: Daily

LAS VEGAS-SAN FRANCISCO (SFO)
F9 1125 Leave LAS: 7:00 p.m. Arrive: SFO 8:35 p.m.
F9 1124 Leave SFO: 9:29 p.m. Arrive: LAS 10:59 p.m.
Aircraft A320
Frequency: Daily

ORLANDO (MCO) — INDIANAPOLIS (IND)
F9 1197 Leave MCO: 2:45 p.m. Arrive IND: 5:05 p.m.
F9 1196 Leave IND: 3:45 p.m. Arrive MCO: 6:05 p.m.
Aircraft: A320
Frequency: Daily

ORLANDO-LOS ANGELES (LAX)
F9 1181 Leave MCO: 4:55 p.m. Arrive LAX: 7:25 p.m.
F9 1180 Leave LAX 8:50p.m. Arrive MCO: 4:30 a.m. (+1 arrives next day)
Aircraft: A319
Frequency: Daily

PHILADELPHIA (PHL) – FORT MYERS (RSW)
F9 1095 Leave PHL: 5 p.m. Arrive RSW: 8 p.m.
F9 1096 Leave RSW: 8:45 p.m. Arrive PHL: 11:25 p.m.
Aircraft: A320
Frequency: Daily except Tuesday

PHILADELPHIA – FORT MYERS
F9 1095 Leave PHL: 5:30 p.m. Arrive RSW 8:30 p.m.
F9 1096 Leave RSW: 9:15 p.m. Arrive: PHL 11:55 p.m.
Aircraft: A320
Frequency: Tuesday

PHILADELPHIA — MONTEGO BAY
F9 107 Leave PHL: 7:30 a.m. Arrive MBJ: 11:25 a.m.
F9 108 Leave MBJ: 12:20 p.m. Arrive PHL: 4 p.m.
Aircraft: A320
Frequency: Sunday, Tuesday, Thursday

Copyright Photo: Brian McDonough/AirlinersGallery.com. Airbus A320-214 N227FR (msn 6184) arrives at Dulles International Airport near Washington.

Frontier Airlines aircraft slide show: