Tag Archives: A320232

Like most carriers, JetBlue Airways restores full operations in the storm-ravaged New York area

JetBlue Airways Corporation (New York) reports the following impact of Hurricane Sandy, and its plans to help the community recover.

Operations are fully restored to the JetBlue airports impacted by Hurricane Sandy, including all New York metropolitan airports, and the airline expects to resume its full schedule today, November 3, 2012.

JetBlue customers booked for travel through Sunday, November 4, 2012 may rebook without fee through November 14. Customers who purchased tickets on or before October 28, 2012 and booked for travel through the end of the year who find themselves unable to travel may convert the full value of their ticket into a credit valid for one year. Full details are available here: http://bit.ly/ME6Gx4

JetBlue is matching the first $100,000 in donations made to the American Red Cross via its website (http://jetbluegives.org/). In addition, the company is donating $250,000 to the JetBlue Crewmember Crisis Fund, a 503(c) independent non-profit designed to support JetBlue crewmembers, and will match, dollar for dollar, all crewmember donations to the fund through November 30, 2012.

“New York is our hometown, and accordingly, we had a large number of crewmembers, customers and neighbors in harm’s way this week. Our thoughts are with those who lost loved ones and suffered catastrophic property loss throughout the Northeast,” said JetBlue President and CEO Dave Barger.

Although JetBlue cancelled 1,484 flights in October due to Hurricane Sandy, the overall financial impact to JetBlue’s October profitability is not expected to be material. JetBlue cancelled 230 additional flights in November due to Hurricane Sandy, and the company expects short term demand to soften as customers focus their attention to recovering from the storm. As a result, fourth quarter impact is expected to be material.

“The storm is not yet behind us,” Mr. Barger said. “Our families and communities are focused on rebuilding. The JetBlue family is here to help. I would like to thank JetBlue’s 14,500 crewmembers for their commitment to running a reliable operation for our customers at this difficult time, as well the City and State of New York, the City of Newark, the State of New Jersey, all of the first responders including police, fire and emergency medical technicians, the Metropolitan Transportation Authority and the Port Authority of New York and New Jersey for their leadership and partnership. We are ready, willing and able to do our part and more to get our hometown back to business as usual.”

Copyright Photo: Stephen Tornblom. JetBlue is proud to be considered New York’s airline. Airbus A320-232 N586JB (msn 2160) displays the “I Love NY” special livery on the ramp at New York (JFK). During the storm, nearby LaGuardia Airport was under water due to the storm surge which pushed water in from Long Island Sound on to the runways and the eastern ramps.

JetBlue Airways:

Many of our friends and readers are suffering in the affected areas, especially in the New Jersey shore, Staten Island, Brooklyn, Queens and Hoboken. Please give what you can to the American Red Cross:

Spirit Airlines reports third quarter adjusted net income of $25.2 million

Spirit Airlines, Inc. (Fort Lauderdale/Hollywood) today (OCtober 31) reported third quarter 2012 financial results.

Net income, excluding special items, for the third quarter 2012 was $25.2 million, or $0.35 per diluted share¹. GAAP net income for the third quarter 2012 was $30.9 million, or $0.43 per diluted share.
Operating margin, excluding special items, for the third quarter of 2012 was 11.8 percent¹. Operating margin on a GAAP basis was 14.5 percent for the third quarter of 2012.
Adjusted EBITDAR for the third quarter 2012 was $81.8 million, resulting in an Adjusted EBITDAR margin of 23.9 percent.
Spirit ended the third quarter 2012 with $399.1 million in unrestricted cash.

Revenue Performance

For the third quarter 2012, Spirit’s total operating revenue was $342.3 million, an increase of $53.6 million, or 18.6 percent, compared to third quarter 2011 on a capacity increase of 22.7 percent.

Total revenue per available seat mile (“RASM”) for the third quarter 2012 was 11.52 cents, a decrease of 3.4 percent compared to the third quarter 2011, driven by lower load factor and operating yields against very strong results last year.

Passenger flight segment (“PFS”) volume grew 23.2 percent year-over-year in the third quarter 2012 with total revenue per PFS of $121.65. Average non-ticket revenue per PFS for the third quarter 2012 increased 11.5 percent year-over-year to $49.80 while average ticket revenue per PFS for the quarter decreased 12.1 percent year-over-year to $71.85 as Spirit continued its strategy to offer low base fares while increasing revenue from non-ticket sources. In addition, ticket revenue per passenger segment in the third quarter 2011 included the benefit from the Federal Excise Tax holiday.

Cost Performance

Total operating expenses in the third quarter 2012 were $292.6 million, an increase of $48.5 million, or 19.9 percent, compared to the same period in 2011, primarily driven by fuel and other expenses associated with increased flight volume, partially offset by a gain associated with the sale of four air carrier slots at Ronald Reagan National Airport. Other expense drivers included passenger re-accommodation costs related to flight cancellations and crew-related costs as a result of network scope changes.

Cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) for the third quarter 2012 was 6.02 cents, an increase of 4.9 percent year-over-year, largely driven by higher passenger re-accommodation costs related to flight cancellations. Other primary drivers included additional rent for an aircraft temporarily leased from a third-party provider to maintain desired capacity levels during the summer, start-up costs associated with the Company’s seat maintenance program and implementation costs of an Enterprise Resource Planning (ERP) system.

During the third quarter 2012, the Company incurred start-up costs related to its seat maintenance program of $2.3 million, bringing its total costs incurred related to this program to $5.4 million. Spirit estimates that total start-up costs related to this program will be approximately $7 million with the remaining balance incurred in the fourth quarter 2012.

Selected Balance Sheet and Cash Flow Items

At the end of the third quarter 2012, Spirit had $399.1 million in unrestricted cash and cash equivalents and no restricted cash balance. As of September 30, 2012, the Company had no debt on its balance sheet and total shareholders’ equity of $559.5 million.

During the third quarter 2012, the Company had capital expenditures of $2.5 million, paid $11.5 million in pre-delivery deposits (“PDPs”) for future deliveries of aircraft and spare engines and paid $13.0 million in maintenance reserves, net of reimbursements.

Fleet

Spirit ended the third quarter 2012 with 42 aircraft in its fleet. The Company has two new A320 aircraft scheduled for delivery in the fourth quarter 2012, which deliveries would bring the year-end 2012 fleet to 44 aircraft. In addition, in October 2012, Spirit signed a Letter of Intent with ILFC to lease three used A319 and five A320neo aircraft, subject to final documentation. These aircraft are undergoing customary maintenance checks, and the Company currently expects one A319 aircraft to be delivered in December 2012 with two expected to be delivered in January 2013. Delivery dates for the A320neo aircraft will be confirmed after Spirit has made a decision on its engine type selection for the A320neo.

Third Quarter 2012 and Other Current Highlights

Recently added/announced new service between (service start date):

– Dallas/Fort Worth and Baltimore/Washington (9/6/12)	– San Diego and Portland, Oregon (11/8/12)
– Fort Lauderdale and Baltimore/Washington (9/6/12)	– San Diego and Los Cabos, Mexico (11/8/12)**
– Dallas/Fort Worth and Houston (9/20/12)	– Dallas/Fort Worth and New Orleans (1/24/13)
– Houston and Chicago (10/4/12)	– Dallas/Fort Worth and Oakland/
– Houston and Las Vegas (10/4/12)	San Francisco (4/25/13)
– Denver and Phoenix/Mesa (10/4/12)	– Dallas/Fort Worth and Los Angeles (4/25/13)
– Chicago and Tampa (11/8/12)*	– Dallas/Fort Worth and Cancun, Mexico (4/25/13)
– Chicago and Phoenix/Mesa (11/8/12)*	– Dallas/Fort Worth and Minneapolis/St. Paul (4/25/13)
– Minneapolis/St. Paul and Fort Lauderdale (11/8/12)*	– Dallas/Fort Worth and Philadelphia (4/25/13)
– Minneapolis/St. Paul and Fort Myers (11/8/12)*	– Dallas/Fort Worth and Los Cabos, Mexico (6/13/12)**
– Dallas/Fort Worth and Fort Myers (11/8/12)*	– Dallas/Fort Worth and Latrobe/Pittsburgh (6/14/13)
– Boston and Fort Myers (11/8/12)*

Announced opening a Crew Base at Dallas/Fort Worth International Airport on December 1, 2012.

*Seasonal service only

**Spirit has filed with the U.S. Department of Transportation (“DOT”) to begin nonstop service between Dallas/Fort Worth and Los Cabos, Mexico and between San Diego and Los Cabos, Mexico, subject to necessary governmental approval.

Copyright Photo: Tony Storck. Spirit Airlines is now serving Baltimore/Washington. Airbus A320-232 N608NK (msn 4902) prepares to land at BWI.

Spirit Airlines:

Virgin Australia makes three bold moves

Virgin Australia Holdings Limited (Virgin Australia Airlines) (Brisbane) is making three bold moves. The company issued the following statement:

Virgin Australia Holdings Limited today announced three transactions designed to accelerate the growth of the business, diversify its earnings and increase competition in Australia.

The transactions include:

making a placement of shares to Singapore Airlines (Singapore), which will see Singapore Airlines owning a 10% interest in Virgin Australia Holdings;
entering a Share Purchase Agreement to acquire 60% of the existing shares in Tiger Airways Australia (Melbourne) from Tiger Airways; and
entering an in-principle agreement with Skywest Airlines (Perth) to acquire 100% of its business.

Virgin Australia Chief Executive Officer John Borghetti said: “The transactions announced today are in line with Virgin Australia’s strategy to become the airline of choice in all markets, in order to diversify our earnings and drive growth opportunities for the business.

“The acquisition of Tiger Australia and Skywest provides Virgin Australia with a strong presence in the budget, Fly-in Fly-Out (FIFO) and regional markets, enabling us to fast-track our expansion in these areas and become a stronger competitor”, Mr Borghetti said.

“These transactions will bring important benefits to Australia, driving growth in jobs, tourism and competition”, Mr Borghetti said.

If approved, following the completion of the transactions, the Virgin Australia Group will expand to 139 aircraft and over 9,000 employees .

Virgin Australia will keep the market updated regarding progress on these transactions.

Meanwhile partner Singapore Airlines (Singapore) has ordered 20 Airbus A350-900s and five A380s and will assign its 20 Boeing 787-9 Dreamliners to subsidiary Scoot (Singapore).

Top Copyright Photo: Lloyd Fox. If approved, Skywest Airlines (Perth) will become a 100% subsidiary of Virgin Australia. The regional carrier is already operating ATR 72-500s for Virgin Australia in their livery. The Skywest brand used for other Western Australia routes is now likely to disappear.

Virgin Australia:

Skywest Airlines:

Tiger Airways (Australia):

Bottom Copyright Photo: Micheil Keegan. Since Singapore Airlines and its Tiger Airways (Australia) subsidiary are now partners with Virgin Australia, it is unclear if Tiger Airways (Australia), a competitor of Virgin Australia, will continue to use the the Tiger Airways brand in Australia or operate now under the Virgin Australia name. Airbus A320-232 VH-VNO (msn 4053) climbs away from Sydney.

JetBlue reports net income of $45 million in the third quarter

JetBlue Airways Corporation (JetBlue Airways) (New York) reported its results for the third quarter 2012:

Operating income for the quarter was $113 million, resulting in an 8.6% operating margin, compared to operating income of $108 million and a 9.0% operating margin in the third quarter of 2011.
Pre-tax income of $73 million in the third quarter. This compares to pre-tax income of $56 million in the third quarter of 2011.
Net income for the third quarter was $45 million, or $0.14 per diluted share. This compares to JetBlue’s third quarter 2011 net income of $35 million, or $0.11 per diluted share.

Operational Performance

JetBlue reported record operating revenues in the third quarter of $1.3 billion, an increase of 9.4% versus the same period last year. Revenue passenger miles for the third quarter increased 8.9% to 9.07 billion on a capacity increase of 8.6%, resulting in a third quarter load factor of 84.8%, an increase of 0.3 points year over year.

Yield per passenger mile in the third quarter was 13.15 cents, up 0.8% compared to the third quarter of 2011. Passenger revenue per available seat mile (PRASM) for the third quarter 2012 increased 1.1% year over year to 11.15 cents and operating revenue per available seat mile (RASM) increased 0.7% year over year to 12.21 cents.

Operating expenses for the quarter increased 9.8%, or $108 million, over the prior year period. JetBlue’s operating expense per available seat mile (CASM) for the third quarter increased 1.1% year-over-year to 11.16 cents.

Excluding fuel, CASM increased 3.7% to 6.67 cents, driven primarily by higher maintenance expense due to the aging of JetBlue’s fleet.

Fuel Expense and Hedging

JetBlue continued to hedge fuel to manage price volatility. Specifically, during the third quarter JetBlue hedged approximately 27% of its fuel consumption and additionally managed approximately 18% of its fuel consumption using fixed forward price agreements (FFPs), resulting in a realized fuel price of $3.17 per gallon, a 2% decrease over third quarter 2011 realized fuel price of $3.25. JetBlue’s fuel expense reflects approximately $2 million in gains on fuel hedges settling during the third quarter.

JetBlue has hedged approximately 27% of its fourth quarter projected fuel requirements using a combination of collars, crude call options, and jet fuel swaps. In addition, JetBlue has managed approximately 19% of its fourth quarter projected fuel consumption using FFPs. Based on the fuel curve as of October 19th, JetBlue expects an average price per gallon of fuel, including the impact of hedges, FFPs and fuel taxes, of $3.25 in the fourth quarter and $3.22 for the full year 2012.

Balance Sheet Update

JetBlue ended the third quarter with approximately $1.1 billion in unrestricted cash and short term investments. Since December 31, 2011, JetBlue has increased the number of unencumbered A320 aircraft to seven and decreased the total debt balance by approximately $213 million.

Fourth Quarter and Full Year Outlook

For the fourth quarter of 2012, CASM is expected to increase between 2.0% and 4.0% over the year-ago period. JetBlue expects roughly half of this year over year increase to be driven by maintenance expense. Excluding fuel, CASM in the fourth quarter is expected to increase between 2.0% and 4.0% year over year.

CASM for the full year is expected to increase between 1.5% and 3.5% over full year 2011. Excluding fuel, CASM in 2012 is expected to increase between 2.0% and 4.0% year over year.

Capacity is expected to increase between 5.0% and 7.0% in the fourth quarter and to increase between 7.0% and 9.0% for the full year.

On the aircraft side, Jetblue is scheduled to take delivery of four Airbus A320s and one Embraer ERJ 190 before the end of the year. All four A320s will be paid in cash as it is believed this is best for the ROIC (Return On Investment Commitment).

Copyright Photo: Stephen Tornblom. Airbus A320-232 N598JB (msn 2314) at the New York (JFK) hub presents a nice ramp portrait in the Barcode tail design.

JetBlue Airways:

Kingfisher Airlines pleads to its unpaid workers to return to work in order to restart operations

Kingfisher Airlines (Mumbai and Bangalore) is asking its unpaid workers to return to work so it can restart operations on October 13. The airline shut down operations through October 12 and faces a possible revocation of its AOC if it is unable to resume operations. The airline did not indicate when the workers would be paid.

Read the full account from Business Today: CLICK HERE

Kingfisher Airlines:

Kingfisher Airlines fights off labor unrest with a “partial lockout” and a temporary suspension of flights

Kingfisher Airlines (Bangalore and Mumbai) is now battling upset employees as the carrier struggles to survive and maintain a viable schedule. Management declared a “partial lock-out” and temporary suspension of flights.

The airline has issued the following statement:

Kingfisher Airlines Limited has announced that following a series of protracted and unabated incidents of violence, criminal intimidation, assault, wrongful restraint and other illegal acts including refraining from attending work, by a small section of recalcitrant employees which were all unnecessary and unprovoked, the management has been forced to declare a partial lock-out at the airline, effective immediately.

Kingfisher Airlines has more than sufficient number of staff to safely operate its current schedule of flights as per the holding plan. It is internally ascertained that despite the fact that a vast majority of the staff are willing to cooperate and support the company in these turbulent times, they are not able to/not being allowed to report to work on account of acts of criminal intimidation by the said same class of recalcitrant employees who have regrettably chosen to take law into their own hands, forcing a complete paralysis of operations.

In these circumstances, with the safety of passengers in mind, the Company is left with no other option but to take firm and decisive steps as advised in law, including disciplinary action against these recalcitrant employees, to bring the situation under control particularly with a view to getting flight operations back to normal at the earliest. All employees are hereby called upon to immediately and forthwith restore normalcy and resume normal duties.

Before commencing legal action, the Company will make efforts to continue to engage with these recalcitrant employees to persuade them to cease and desist from intimidating and threatening the vast majority of the work force that is willing to report for work with a view to commence normal flight operations as per the holding plan as soon as possible.

In the meanwhile, it has been decided that flight operations will be suspended for the next 3 days, i.e. until October 4, 2012.

We sincerely regret any inconvenience caused to our valued guests on account of this.

Copyright Photo: Paul Doyle. The struggling airline has been shedding its leased aircraft. Former Kingfisher Airlines Airbus A320-232 EI-EWS (VT-KFK) (msn 2670) is pictured arriving at Dublin on September 19, 2012 after a ferry flight from Istanbul. The aircraft will be repainted at the Eirtech Aviation facility for a new customer of BBAM.

Kingfisher Airlines:

TAME expands into Venezuela

TAME (Linea Aerea del Ecuador) (Quito) on September 10, 2012, began operating a new daily flight to Caracas, Venezuela from Quito. The ceremony was attended by government authorities, media and special guests. This new route complements the company’s daily flight between Quito and Bogota which was launched on July 9, 2012.

Will the flag carrier expand next to the United States?

TAME:

Frameable Color Prints and Posters:

Route Map:

Please click on the map for the full size.

RayaJet of Jordan to add its first Airbus A320

RayaJet (Amman) was launched in April 2005 as a charter airline specializing in serving both Amman and Aqaba in Jordan with business jet aircraft.

Now the company is getting ready to lease its first airliner from ILFC.

The former Spanair Airbus A320-232 EI-EUS (msn 1497, ex EC-HXA) is pictured arriving back at Dublin Airport, after it was repainted by Eirtech Aviation at Shannon Airport.

Hot New Photos:

Spirit Airlines announces even more new routes

Spirit Airlines (Fort Lauderdale/Hollywood) today announced that it is adding two more new routes from Houston’s George Bush Intercontinental Airport starting October 4, 2012, including:

daily nonstop service between Houston and Chicago’s O’Hare International Airport and
daily nonstop service between Houston and Las Vegas

Spirit also recently announced it is launching twice daily nonstop service between Houston and Dallas/Fort Worth International Airport on September 20, 2012, with connections available to six destinations including, Baltimore/Washington, Las Vegas, Mesa, Tampa/St. Petersburg, Toluca, and Portland, Oregon.

Spirit Airlines also announced schedules for new service to/from Los Cabos and Cancun, Mexico starting November 8, 2012.

Daily nonstop service between Los Cabos, Mexico (serving Cabo San Lucas and San Jose del Cabo) and San Diego starts November 8, 2012, with connecting service to Dallas/Fort Worth.
In addition, four weekly nonstop flights between Los Cabos, Mexico and Dallas/Fort Worth start June 13, 2013.
Three weekly nonstop flights between Cancun, Mexico and Dallas/Fort Worth start April 25, 2013, with service increasing to daily on June 13, 2013.

The company also announced it is adding daily nonstop service between Denver International Airport and Mesa (Phoenix-Mesa Gateway Airport) starting on October 4, 2012.

Finally the ultra-fare airline announced it is adding daily nonstop service between Portland International Airport and San Diego International Airport starting on November 8, 2012.

Copyright Photo: Bruce Drum. Airbus A320-232 N604NK (msn 4431) taxies to the runway at the Fort Lauderdale/Hollywood hub.

Spirit Slide Show:

Spirit’s growing Route Map:

Please click on the map to expand.

Spirit announces new routes to Mexico and Philadelphia

Spirit Airlines (Fort Lauderdale/Hollywood) has announced schedules for new service to/from Los Cabos and Cancun, Mexico starting on November 8, 2012.

The new service includes one daily nonstop service between Los Cabos, Mexico (serving Cabo San Lucas and San Jose del Cabo) and San Diego, with connecting service to Dallas/Fort Worth.

In addition, four weekly nonstop flights between Los Cabos, Mexico and Dallas/Fort Worth start on June 13, 2013.

Three weekly nonstop flights between Cancun, Mexico and Dallas/Fort Worth start on April 25, 2013, with service increasing to daily on June 13, 2013.

The company is also launching nonstop Dallas/Fort Worth-Philadelphia (four days a week) service on April 26, 2013 as it builds up its DFW hub.

Spiriti Airlines Slide Show: