Tag Archives: A320200

Indigo Partners to divest its shares of Spirit Airlines

Spirit Airlines (Fort Lauderdale/Hollywood) has issued this statement about the shares owned by Indigo Partners:

Spirit Airlines, Inc. has announced the public offering of 12,070,920 shares of common stock by certain existing stockholders affiliated with Indigo Partners LLC. Upon completion of the offering, investment funds affiliated with Indigo will no longer own shares of common stock of Spirit Airlines. The company will not receive any proceeds from this offering. Barclays is acting as the sole underwriter for the offering.

The shares of common stock are being offered pursuant to the Company’s existing shelf registration statement filed with the Securities and Exchange Commission (SEC) on July 31, 2012.

In connection with the offering, the Company also announced that William A. Franke and John R. Wilson have informed the Company that upon completion of the offering, they expect to resign as directors at the next board meeting, presently scheduled for August 7, 2013. Upon Mr. Franke’s resignation, the Company’s board intends to elect Mr. H. McIntyre Gardner, a director since 2010, as Chairman of the Board.

Copyright Photo: Tony Storck/AirlinersGallery.com. Airbus A320-232 N617NK (msn 5387) prepares to touch down at Baltimore/Washington.

Spirit Airlines:

Delta to fly from Indianapolis to both Montego Bay and Nassau

Delta Air Lines (Atlanta) will operate seasonal weekly fights from Indianapolis to both Montego Bay, Jamaica (A320) and Nassau, Bahamas (CRJ900) starting on December 21, 2013 and running through March 29, 2014 for the winter season per Airline Route.

In addition, the company will suspend Atlanta-Dublin service from January 11, 2014 through March 8, 2014.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A320-211 N325US (msn 281) arrives at the Minneapolis/St. Paul hub.

Delta Air Lines:

Tianjin Airlines promotes the 6th East Asian Games with a new Airbus A320 logojet

Tianjin Airlines (Tianjin) is promoting the upcoming 6th East Asian Games with this new Airbus A320 logojet.

The East Asian Games is a multi-sport event organized and promoted by the East Asian Games Association (EAGA). The games are held every four years with athletes from East Asian countries and territories of the Olympic Council of Asia (OCA), as well as the Pacific island of Guam.

The 2013 Games will be held in Tianjin, China from October 6-15, 2013.

Tianjin Airlines is a sponsor of the 2013 Games. The pictured Airbus A320 was dedicated and unveiled at Tianjin Binhai International Airport on the morning of July 15, 2013.

Tianjin Airlines is a joint venture of the Tianjin Municipal Government and the HNA Group.

Copyright Photo: Kok Chwee (K. C.) Sim/AirlinersGallery.com. Formerly operated by defunct Bahrain Air as A9C-BAO, this Airbus A320-214 was leased from GECAS on June 21, 2013 as OE-ICD. The airliner will become B-9963. OE-ICD is pictured taxing at Steletar Airport in Singapore.

Spirit Airlines reports its highest Second Quarter pre-tax margin in its history

Spirit Airlines, Inc. (Fort Lauderdale/Hollywood) today reported second quarter 2013 financial results.

Adjusted net income for the second quarter 2013 increased 29.6 percent to $45.8 million¹($0.63 per diluted share) compared to $35.3 million¹ ($0.49 per diluted share) for the second quarter 2012. GAAP net income for the second quarter 2013 was $42.1 million ($0.58 per diluted share) compared to $34.6 million ($0.48 per diluted share) in the second quarter 2012.
Spirit achieved an adjusted pre-tax margin of 17.8 percent¹ and a GAAP pre-tax margin of 16.4 percent for the second quarter 2013.
Spirit ended the second quarter 2013 with $525 million in unrestricted cash.
Spirit’s return on invested capital (before taxes and excluding special items) for the last twelve months ended June 30, 2013 was 28.8 percent. See “Calculation for Return on Invested Capital” table below for more details.

Revenue Performance

For the second quarter 2013, Spirit’s total operating revenue was $407.3 million, an increase of 17.6 percent compared to the second quarter 2012.

Total revenue per available seat mile (“RASM”) for the second quarter 2013 was 11.91 cents, a decrease of 2.8 percent compared to the second quarter 2012. The calendar shift of Easter occurring in March this year compared to in April in 2012 negatively impacted second quarter 2013 results.

Passenger flight segment (“PFS”) volume for the second quarter 2013 grew 19.1 percent year over year. Average non-ticket revenue per PFS for the second quarter 2013 increased 3.8 percent year over year to $53.43. The growth in non-ticket revenue per PFS was driven primarily by various changes in late 2012 to the pricing structure for optional services.

Cost Performance

Total operating expenses for the second quarter 2013 increased 17.0 percent year over year to $340.6 million on a capacity increase of 21.0 percent.

During the second quarter 2013, the Company entered into lease extensions covering fourteen of its existing A319 aircraft. In addition to extending the lease termination dates, the Company negotiated reduced lease rates resulting in lower rent expense for the remaining term of the leases as well as other benefits. In the second quarter 2012, the Company incurred one-time start-up costs and other related expenses associated with its seat maintenance program. On a per available seat mile basis, the net effect of these items was offset by higher depreciation and amortization expense related to amortization of heavy maintenance events and maintenance expense related to the growth and aging of our fleet, resulting in a second quarter 2013 cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) of 6.00 cents, a decrease of 0.8 percent year over year.

Selected Balance Sheet and Cash Flow Items

As of June 30, 2013, Spirit had $525 million in unrestricted cash and cash equivalents, no restricted cash, no debt on its balance sheet, and total shareholders’ equity of $658 million.

For the six months ended June 30, 2013, Spirit incurred capital expenditures of $13.8 million. The Company paid $19.7 million in pre-delivery deposits for future deliveries of aircraft, net of refunds, and recorded a change of $16.6 million in maintenance deposits, net of reimbursements.

Fleet

In the second quarter 2013, Spirit took delivery of one new A320 aircraft, ending the quarter with 50 aircraft in its fleet. The Company also took delivery of one new A320 in July 2013 and has three more new A320 aircraft scheduled for delivery by year-end 2013.

Spirit Airlines:

South African Airways takes delivery of two new Airbus A320s

South African Airways (SAA) (Johannesburg) has taken delivery of its first two new Airbus A320s out of a total of 20 A320 Family aircraft ordered from Airbus in 2010. The development is set to deliver cost efficiencies and allow SAA to expand its Sub-Sahara regional route network and boost revenue in the rapidly growing market.

The airline’s A320s, powered by IAE-V2500 engines, feature a two class cabin layout, seating 24 passengers in business class and 114 in economy. The A320s will replace its present fleet of 737-800s and will augment the A319s it already has in service and mark the latest phase of SAA’s fleet modernization plan.

Copyright Photo: Paul Denton/AirlinersGallery.com. SAA currently already operates 2 Airbus A320s and 13 Boeing 737-800s. Airbus A320-232 ZS-SZZ (msn 4990) arrives at the Johannesburg hub.

South African Airways:

Qatar Airways to fly to Ethiopia

Qatar Airways (Doha) will add a new route from Doha to Addis Ababa starting on September 18. The new route to Ethiopia will be operated three days a week with Airbus A320s. ADD will be 20th destination in Africa for the carrier.

In other news, the airline has added two additional flights between its hub in Doha and Amman, bringing the total number of services to Jordan to nine weekly flights.

Qatar Airways has so far launched six destinations this year – Gassim (Saudi Arabia), Najaf (Iraq), Phnom Penh (Cambodia), Chicago O’Hare (USA), Salalah (Oman) and Basra (Iraq).

Qatar Airways:

US Airways to resume Phoenix-Miami nonstop flights on October 27

US Airways (Phoenix) in anticipation of the merger with American Airlines (Dallas/Fort Worth), will re-launch the Phoenix-Miami route on October 27. The route will be operated daily with Airbus A320s according to Airline Route. This is an old America West route.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A320-214 N119US (msn 1268) approaches Los Angeles International Airport for landing.

US Airways:

JetBlue Airways provides an update on its “Fly-Fi” system

JetBlue Airways (New York) has issued this update on its WiFi aircraft upgrade program:

As Summer hits its stride, we wanted to take a moment to give an update on a topic of great interest to our online audience: WiFi onboard!

Earlier this spring we announced some details on our upcoming service we’re calling Fly-Fi and we’re well on our way to bringing this innovative solution to our customers. Bringing faster internet connections than the other guys isn’t without it’s challenges though. If we want to have a better connection, we can’t just use the same technology, so we turned our eyes to the sky… about 22,000 miles up!

As the first U.S. airline to use Ka Band satellite technology to deliver high speed internet to our aircraft, it also falls to us to prove that the technology and equipment used to deliver it is safe, and have the FAA certify that the equipment is ready to be installed in additional aircraft. With safety as our number one value, we don’t take this responsibility lightly.

In June, we took one of our planes out of service and gave it an experimental designation so we could install the necessary equipment. Aside from the electrical work to be done throughout the cabin, there’s the small matter of outfitting the external equipment as well. It’s no small feat to install rotating, pivoting blades that constantly track the orbiting ViaSat-1!

After several ‘proving flights’ to test the air-worthiness of the added equipment and new radome (the bubble on top of our planes containing antennae), we were able take another flight to test the Fly-Fi system and any impact the signals may have on other aircraft systems or equipment. The tests were VERY thorough, we even tested the lavatory lights!

The most exciting tests were of the system itself though, and the team reporting back was thrilled with the results and download speeds they were seeing. Needless to say, our excitement is high and we itching to start rolling it out, but there are a couple final steps to go.

One of a flurry of photos sent from the experimental aircraft using Fly-Fi

With testing done, the experimental aircraft must now sit and wait for the FAA to review the documentation and data collected to issue a Supplemental Type Certificate that will allow us to return the plane to service, and begin the process of installing Fly-Fi on our fleet. We expect that process to take a bit of time, but once complete, we get to take to the air once again for final preparations. Once the plane is completely vetted, it’ll return to service, and we’ll be able to begin rolling out Fly-Fi to the rest of the fleet.

Top Copyright Photo: James Helbock/AirlinersGallery.com (all others by JetBlue). JetBlue Airways is also adding new Sharklets tail devices in-house to its fleet. The first, the pictured A320-232 N821JB (msn 5417) “Blue Yorker” was unveiled at New York (JFK) on February 22, 2013.

JetBlue Airways:

Despite the protests of founder Stelios Haji-Iannou, easyJet finalizes its Airbus order

EasyJet (easyJet.com) (UK) (London-Luton) has firmed up the purchase of 135 Airbus A320 family aircraft (100 A320neos and 35 A320ceos). The initial agreement was announced earlier in June.

Founder Sir Stelios Haji-Ioannou was critical of the order and did not want to approve the order as a stockholder. However enough stockholders gave their approval for the order to proceed.

Haji-Ioannou started easyJet in 1995 when he was 28. In 2000, EasyJet PLC was partially floated on the London Stock Exchange. Stelios’ family remains its largest single shareholder.

Top Copyright Photo: Paul Denton/AirlinersGallery.com. Airbus A320-214 G-EZTY (msn 4554) approaches Geneva for landing (click on the photo for the full size view).

EasyJet (UK):

Bottom Image: Airbus. An artist rendition of the A320neo.

Thomas Cook Airlines introduces its “Air Flair” logojet

Thomas Cook Airlines (Belgium) (Brussels) loves logojets and the additional advertising revenue its brings in. Following on the new Ice-Watch logojet, the airline has also introduced this new “Air Flair” logojet on the pictured Airbus A320-214 OO-TCJ (msn 1787). The logojet promotes the local Belgian magazine Flair, which is read mainly by women.