Tag Archives: A330-800neo

Hawaiian Airlines finalizes the purchase of six Airbus A330-800neo aircraft

Hawaiian Airlines (Honolulu) has announced a definitive purchase agreement with Airbus, finalizing the Memorandum of Understanding (MOU) announced earlier this year to acquire six new A330-800neo aircraft starting in 2019. The agreement replaces Hawaiian’s previous order for six A350-800s. The transaction includes rights to purchase an additional six aircraft as part of the carrier’s path to growth and increased efficiency.

The A330-800neo wide-body, powered by the recently launched Rolls Royce Trent 7000 engine, is similar in size to Hawaiian’s A330-200 which seats 294 passengers in a two class configuration (First and Coach), and will incorporate aerodynamic enhancements that will increase range by up to 400-nautical miles and reduce fuel consumption by 14 percent per seat. According to the carrier, “the aircraft is the right-sized solution for the carrier’s future growth strategy.”

Terms of the agreement were not disclosed, but the aircraft have a total list-price value of approximately $2.9 billion if all of the purchase rights are exercised. Hawaiian Airlines’ existing orders include an additional three new A330-200s for delivery in 2015 and 16 narrow-body A321neo aircraft starting in 2017.

Hawaiian Airlines currently operates a fleet of 50 aircraft, comprised of 29 wide-body, long-haul aircraft (294-seat A330-200 aircraft and 252 to 264-seat Boeing 767-300 aircraft), 18 narrow-body 118- to 123-seat Boeing 717-200 aircraft and three 48-seat ATR42-500 for Neighbor Island flights.

Image: Airbus.

Hawaiian Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-2/Airlines-UnitedStates-2/Hawaiian-Airlines

Hawaiian signs a MOU for six new Airbus A330-800neo aircraft, reports 2Q GAAP net income of $27.3 million

Hawaiian Airlines (Honolulu) today announced the signing of a Memorandum of Understanding (MOU) with Airbus to acquire six new Airbus A330-800neo aircraft starting in 2019, with rights to purchase an additional six aircraft as part of the carrier’s vision to serve farther nonstop destinations from Hawai’i.

Image: Airbus.

The order replaces Hawaiian Airline’s existing order for six Airbus A350XWB-800 aircraft, which were due for delivery from 2017. Hawaiian Airline’s overall capital commitments will decrease in absolute terms and will be pushed further into the future. For the period through the end of 2018, this amounts to $500 million. Terms of the agreement were not disclosed, but the aircraft have a total list-price value of approximately $2.9 billion if all of the purchase rights are exercised.

“The A330-800neo’s fuel efficiency, additional range and commonality with our existing A330 fleet makes the A330-800neo an elegant solution to our need for growth aircraft toward the end of this decade,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer.

The A330-800neo wide-body is similar in size to Hawaiian Airline’s A330-200 which seats 294 passengers in a two class configuration (First and Coach), and will incorporate aerodynamic enhancements and new cabin features. The new aircraft will have up to a 400-nautical mile increase in range and reduced fuel consumption by 14 percent per seat with the latest generation Rolls-Royce Trent 7000 engines.

Hawaiian Airlines currently operates a fleet of 50 aircraft, comprised of 29 wide-body, long-haul aircraft (294-seat A330-200 aircraft and 252 to 264-seat Boeing 767-300 aircraft), 18 narrow-body 118 to 123-seat Boeing 717-200 aircraft and three 48-seat ATR 42-500 for Neighbor Island flights.

Hawaiian Airline’s existing orders include an additional four new A330-200s for delivery by 2015 and 16 narrow-body A321neo aircraft starting in 2017.

On the financial side, the company issued this statement for the second quarter:

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the second quarter of 2014.

GAAP net income in the second quarter of $27.3 million or $0.43 per diluted share.

Adjusted net income, reflecting economic fuel expense, in the second quarter of $22.4 million or $0.35 per diluted share, an increase of $9.7 million or $0.11 cents per diluted share year-over-year.
Passenger revenue per available seat mile (PRASM) increase of 4.1% and operating revenue per available seat mile (RASM) increase of 6.7%.

Unrestricted cash, cash equivalents and short-term investments of $564 million.

“The same trajectory of substantially improving financial performance was evident in the second quarter as it has been over the last few quarters,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “Strong demand across our geographies, good macro-economic conditions, stable fuel prices and good cost control inside the business all played their part. Absent changes to the environment or competitor behavior, our prospects in the back half of the year look similar. As ever, we continue to build the business with new routes, this summer featuring our first flights from North America to Kaua’i and the island of Hawai’i, and a host of customer improvements including the roll out of our extra comfort economy section of the aircraft. Our wonderful employees continue to deliver the level of service on the ground and in the air that set the standard for others to aspire to. Without their dedication, none of this would be possible.”

Liquidity and Capital Resources

As of June 30, 2014 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $564 million.

Available borrowing capacity of $69.4 million under Hawaiian’s Revolving Credit Facility.

Outstanding debt and capital lease obligations of approximately $1,071 million consisting of the following:

$708 million outstanding under secured loan agreements to finance a portion of the purchase price for eleven Airbus A330-200 aircraft.

$146 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.

$106 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.

$32 million outstanding under floating rate notes for two Boeing 767-300 ER aircraft.
$79 million of outstanding Convertible Senior Notes.

Top Copyright Photo: Jay Selman/AirlinersGallery.com. The new Airbus A330-800neo aircraft will supplement the current Airbus A330-200s and allow the airline to finally retire the older Boeing 767-300 ERs. Airbus A330-243 N383HA (msn 1217) prepares to land in New York (JFK).

Hawaiian:

Airbus launches the A330-800neo and A330-900neo

Airbus (Toulouse) issued this statement today at Farnborough:

Following a decision by the Board of Directors of the Group, Airbus has launched the A330-800neo and A330-900neo, two new members of its Widebody Family, which will incorporate latest generation Rolls-Royce Trent 7000 engines, aerodynamic enhancements and new cabin features. Benefitting from the unbeatable economics, versatility and high reliability of the A330, the A330neo reduces fuel consumption by 14% per seat, making it the most cost efficient, medium range Widebody aircraft on the market. In addition to greater fuel savings, A330neo operators will benefit from a range increase of up to 400 nautical miles and all the operational commonality advantages of the Airbus Family. Deliveries of the A330neo will start in Q4 2017.

“The A330 is a very important margin contributor for our Group. It’s also one of the most reliable and efficient commercial aircraft ever. Customers love it. With our decision to re-engine the plane, we will keep the A330 flying high for many more years to come. The development costs for the A330neo will be incurred from 2015 to 2017 with an impact of around -70 basis points on Airbus Group’s 2015 Return on Sales target. However, we have a very good business case and the A330neo, once in service, will continue to significantly contribute to our group’s earnings,” said Tom Enders, CEO of Airbus Group.

“The A330neo is the logical evolution of our reliable and versatile A330 Family. It provides an optimal solution for airlines around the world looking to minimise their fuel and operating costs while offering best-in-class comfort to their passengers,” said Fabrice Brégier, Airbus President and CEO. “We see strong market potential for the A330neo, and like its market-leading smaller sister, the A320neo, we are confident this new aircraft will be a success in the medium-haul segment. We are again leveraging a proven aircraft with a wide operator base and making it even more efficient with the latest innovations and technology developments.”

In addition to the new Rolls-Royce Trent 7000 engines, the A330neo will feature incremental innovations, including aerodynamic enhancements such as new A350 XWB inspired winglets, an increased wing span and new engine pylons. Pilots will benefit from latest generation cockpit systems, and the already very comfortable A330 cabin will be further optimised to offer up to ten additional 18 inch wide seats. Passengers are winners too, as they will be able to enjoy a 21st century on-board experience with for example, fourth generation In Flight Entertainment (3D films), mood-lighting and full connectivity.

Will this announcement lead to the killing of the underperforming and smaller A350-800? Bloomberg Businessweek explores this question: CLICK HERE

Image: Airbus.