Tag Archives: Airberlin

Airberlin Group’s first quarter net loss remains flat

Airberlin Group logo

Airberlin Group (Airberlin and Niki) (Berlin) reported its first quarter net loss narrowly widened to €210.1 million ($237.6 million), up slightly from €209.8 million $237.2 million) in the same quarter a year ago. Stefan Pichler, CEO of Airberlin Group, stated “We are at the beginning of a long road to recovery.”

Here is the full report:

In the first quarter of 2015, EBIT rose to -159.9 million euros, or 23 million euros over the same quarter last year (Q1, 2014: -182.8 million euros). This demonstrates that despite a competitive market environment, the strategic and operational realignment at airberlin had already begun producing some positive effects on earnings at the start of the year.

Summary of consolidated earnings in the first quarter of 2015

Current performance reviews show airberlin’s average yield at 121.66 euros (Q1 2014: 116.72 euros). This represents a yield optimization of 4.2 percent as compared to the same quarter last year, and was achieved primarily through improvements in revenue management.

Revenue development showed an increase to 793.7 million euros, corresponding to a 4.2 percent growth in revenue over the same quarter last year (Q1 2014: 761.8 million euros). Due to an improved performance during the first three months, operating earnings (EBIT), at -159.9 million euros during the first quarter, also showed a 14 percent increase over the same quarter last year (Q1 2014: -182.8 million euros).

Allowing for current exceptional expenses from the ongoing restructuring program as well as non-recurring effects, adjusted EBIT was -151.4 million euros. Net profit in the first quarter of 2015 was -210.1 million euros (Q1 2014: -209.8 million euros). The Net profit decreased owing to higher interest expenditures and shifts in the market valuation of hedge instruments. 287.6 million euros in liquidity as of 31 March 2015 means Air Berlin PLC is in a stable financial position (Q1 2014: 273.0 million euros).

The current cost structure is marked by a slight rise in personnel and technical and maintenance expenses and increased airport charges. The personnel costs have risen by a direct employee takeover from NIKI, tariff developments and non-recurring expenses. Expenses incurred for technical and maintenance as well as airport charges will, however, be offset over the course of the year by systematic structural effects during the ongoing realignment.

Available seat kilometres (ASK) increased by 1.5 percent. Capacity utilization in the first quarter of 2015 stood at 83.2 percent, a modest increase over the same quarter last year`s rate of 81.8 percent. Total revenue per available seat kilometre (RASK) was 6.71 eurocts (up 2.6 percent on Q1 2014: 6.54 eurocts).

Total costs per ASK (CASK) rose by 0.8 percent year-on-year, going from 8.14 eurocts to 8.20 eurocts.

Stefan Pichler, CEO of Air Berlin PLC, comments on the results of the first quarter as follows:

”We have an initial operational earnings impact from the reduction in capacity and a slightly improved yield management approach. At the same time, seasonal effects such as Easter have also positively influenced the result. Still, we are at the beginning of a long road to recovery.“

Partnerships further strengthened, restructuring measures prove effective

Stefan Pichler emphasizes the importance of airberlin’s strengthened partnerships, in particular with Etihad Airways: ”During the first three months of the year, passenger volume increased by another 18 percent year-on-year, accounting for over 174.400 guests. We intensified our collaboration with Etihad Airways by expanding codeshare connections, with new ones available from Abu Dhabi to Hong Kong, Sri Lanka and Nairobi.“

As well within oneworld® a 19 percent increase in the number of passengers was recorded in the first quarter of 2015. Route performance and effective capacity utilization by the airline partner Iberia contributed significantly to growth.

The restructuring program, initiated in 2014, has already been showing initial positive effects since the start of 2015. Initial positive effects on revenue have been produced by the network restructuring concluded in January, further improvements to the revenue management system as well as the establishment of a new fare concept, and should intensify in the coming months.

During the first quarter, the new “airberlin business benefits” brand was introduced, which combines and further expands airberlin’s many existing corporate benefits. At the beginning of May, airberlin launched its new fare concept for short and medium-haul flights. The tailored fares open up new customer groups for airberlin and offer a great deal of flexibility. Another focus is airberlin’s service offensive. This includes its newly introduced customer advisory boards. In June, airberlin will launch its 24/7 service offensive – from the middle of the year, every passenger will receive feedback on their enquiry within 24 hours, and all customer enquiries will be fully processed within seven working days.

Because of increased market pressures and special expenditures, current foreseeable business development in the second quarter has so far not fulfilled expectations. airberlin will be working systematically on realignment in the coming quarters in order to achieve positive revenue development with respect to revenue passenger kilometres (RPK) as well as steady improvement in average revenue (yield). Continued expansion of product offerings is also of strategic importance in this regard.

Stefan Pichler is convinced of realignment`s effectiveness: “The first quarter has turned out properly. We understand, however, that we need to continue the systematic re-engineering of our company in order to achieve the goals we have set and generate the necessary market momentum. I am convinced that we are on the right track. Our focus on an open and inclusive management culture will enable us to drive further operational improvements.“

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin’s Airbus A321-211 D-ALSB (msn 1994) lands at Tenerife Sur.

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Airberlin posts a record loss in 2014

Airberlin (Berlin) issued their annual report for 2014 on April 29. The airline’s loss grew larger in 2014 despite its growing relationship with partner Etihad Airways (Abu Dhabi). The airline reported a net loss €376.7 million ($424.2 million), compared to a loss of €315.5 million ($355.2 million) for 2013.

Download and read the full report: CLICK HERE

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin is phasing out its Boeing 737s as it transitions to an Airbus fleet. Boeing 737-86J D-ABKN (msn 37756) prepares to land at Tenerife Sur.

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Finnair expands its codeshare agreement with Airberlin

Finnair’s (Helsinki) AY designator will be added to selected services operated by Airberlin (Berlin) or its subsidiary Niki (Vienna) to Bucharest, Catania, Chania, Cologne, Larnaca, Málaga, Naples, Palma de Mallorca, Paphos and Stuttgart. Finnair passengers will be able to connect to these cities via Berlin, Düsseldorf, Frankfurt, Munich, Vienna or Zurich.

Most of the new codeshares will supplement Finnair’s own nonstop services from Helsinki, allowing passengers more travel dates and a wider choice of schedules.

Finnair and Airberlin have been codesharing across Scandinavia and Central Europe since 2010.

Top Copyright Photo: AirlinersGallery.com. Airbus A320-214 OH-LXF (msn 1712) taxies at London (Heathrow).

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Bottom Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin’s Airbus A320-214 D-ABNA (msn 5191) prepares to land at Tenerife Sur.

Finnair and Airberlin to expand their codeshare relationship

Finnair (Helsinki) is expanding its codeshare cooperation in Europe with fellow oneworld alliance member Airberlin (Berlin).

Finnair’s AY designator will be added to selected services operated by Airberlin or its subsidiary Niki to Bucharest, Catania, Chania, Cologne, Larnaca, Malaga, Naples, Palma de Mallorca, Paphos and Stuttgart. Finnair passengers will be able to connect to these cities via Berlin, Düsseldorf, Frankfurt, Munich, Vienna or Zurich.

Most of the new codeshares supplement Finnair’s own nonstop services from Helsinki, allowing passengers more travel dates and a wider choice of schedules. The codeshares are planned to take effect from early May.

Finnair and Airberlin have been codesharing across Scandinavia and Central Europe since 2010.

Top Copyright Photo: Airbus A320-214 OH-LXC (msn 1544) of Finnair taxies at London’s Heathrow Airport.

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Below Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin is gradually phasing out its Boeing 737s. Boeing 737-86J D-ABKQ (msn 37760) prepares to touch down in Tenerife Sur (TFS).

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Jet Airways and Airberlin enter into a codeshare agreement

Jet Airways (Mumbai) has entered into a codeshare agreement with Airberlin (Berlin) effective April 2015.

This development will see Jet Airways placing its code (9W) on airberlin’s (AB) daily flights to Berlin (TXL) and Dusseldorf (DUS) from Abu Dhabi.

Jet Airways operates 12 daily services to Abu Dhabi from 11 Indian cities.

Copyright Photo: Steve Bailey/AirlinersGallery.com. Boeing 737-8AL VT-JFS (msn 39065) was delivered to Jet Airways on April 29, 2014.

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Norwegian and easyJet adopt a “two-person” cockpit rule

Norwegian Air Shuttle (Norwegian.com) (Oslo) and easyJet (UK) (London-Luton) have become early adopters of a new “two persons” cockpit rule in the wake of the devastating news of what caused Germanwings flight 4U 9525 to crash in the French Alps. The rule is already in place in the United States.

In addition, Deutsche Welle is reporting “Germany’s BDL aviation federation announced late Thursday that airlines such as Lufthansa and Airberlin intended to immediately enact the two-person rule in consultation with the Federal Office of Civil Aviation.”

Read the full report: CLICK HERE

Above Copyright Photo: Keith Burton/AirlinersGallery.com. In celebration of the new 26th base at Amsterdam, easyJet has introduced this new Amsterdam logo jet on Airbus A319-111 G-EZDN (msn 3608) painted at Southend. The new theme was rolled out of the paint shop on March 25.

In other news, overshadowed by the stunning Germanwings crash investigation announcements, easyJet yesterday (March 26) celebrated the opening of its new base at Francisco de Sá Carneiro Airport in Porto. Three new UK routes from Manchester, Bristol and London Luton Airports to the new Porto base will be launched this summer.

Flights from Bristol to Porto will commence on April 19 and operate on Wednesdays, Fridays and Sundays.

Porto is the 25th base of easyJet’s network and the airline will also inaugurate its 26th base in Amsterdam on March 31.

easyJet started its operations in Portugal in 1999 and flies now to 48 destinations in Europe being the third largest airline in the country with 12% market share and more than 4 million passengers carried in 2014. easyJet flies to Faro, Funchal, Porto and Lisbon and from 29 March a service will start connecting the capital with Ponta Delgada in Azores.

Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-8JP WL LN-NIF (msn 39434) with Finnish writer and social activist Minna Canth on the tail arrives at Tenerife Sur.

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Airberlin today introduces Milo, the giant red ostrich on Airbus A320 D-ABFO

Airberlin.com A320-200 D-ABFO (15-Milo-topbonus)(Grd)(Airberlin)(LRW)

Airberlin (airberlin.com) (Berlin) today introduced a 66-foot long giant portrait of Milo, the new ostrich mascot of Airberlin’s topbonus frequent flyer program. The Airbus A320-214 registered as D-ABFO (msn 4565) entered service today (January 31). The airline issue this statement.

A giant image of Milo, the new mascot for Airberlin’s topbonus frequent flyer program, will soon be cruising the skies along the airline’s European route network. The very first Airbus A320-200 to carry the mascot’s likeness, registration D-ABFO, took off from Munich at 8:20 a.m. on January 31, 2015, and arrived in Hamburg at 9:40 a.m. From there, Milo continued to Palma de Mallorca, touching down at 1:40 p.m., before completing the final leg of the journey and landing in Faro at 3:20 p.m.

Measuring approximately 22 meters (66 feet) in length, both sides of the aircraft will carry an image of Milo the red ostrich. Seven employees at Airberlin’s technical service in Munich were responsible for the paint job, which kept them busy for two days in total.

“Milo will take to the skies to increase the prominence and visibility of topbonus at the approximately 120 airports across the European route network. We will continue in our efforts to make our frequent flyer further even more attractive this year, and will therefore reach out to people who strictly speaking may not be the most frequent flyers. We are confident that the Airbus decorated with the friendly image of Milo will continue to increase awareness of topbonus within this particular target group”, explains Anton Lill, Managing Director at topbonus.

The scheduled routes the Airbus will service over the coming days are shown at airberlin.com/topbonusflieger.

There will be a competition on Airberlin’s social media channels on February 2, 2015 to coincide with the première of the topbonus plane, inviting people to report sightings.

Topbonus is using Milo to target infrequent flyers in particular. Ostriches are the world’s largest flightless birds, and topbonus is helping Milo realize its dream of soaring across the skies by collecting miles on the ground with around 100 topbonus partners. These miles can then be redeemed for free tickets and other attractive premiums.

Photo: Airberlin.

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Video: Airberlin’s Airbus A320 “Polar Night Flight” to Longyearbyen, Spitsbergen

Video: Sam Chui. The first airline outside of Norway to land during the Polar Night at Longyearbyen, Spitsbergen (Svalbard) in complete darkness at 2 pm in the afternoon. Event was organized by Airevents to celebrate New Year’s Eve in Spitsbergen.

Alitalia maps out its new strategy, will include a new look and it must be profitable again by 2017

Alitalia (3rd) (Rome) today issued new strategy with its new partner Etihad Airways (Abu Dhabi). The new strategy will also include a new brand and livery for 2015.

The company issued this statement:

The strategy for the new Alitalia was unveiled today, with an unequivocal commitment by the new executive team and strategic investors to reinvent the airline.

Alitalia will introduce new routes, new product and service standards, a new cost management strategy and new branding, as the foundations to build a premium global airline representing the best of Italy.

The new Alitalia commenced operations on January 1, 2015, following the completion of equity investments by Etihad Airways and Alitalia’s existing shareholders. The new company’s Board meeting yesterday ratified the business strategy, which was outlined today by Luca di Montezemolo, Chairman of Alitalia, Silvano Cassano, Chief Executive Officer of Alitalia, and James Hogan, President and Chief Executive Officer of Etihad Aviation Group and Vice Chairman of Alitalia.

Luca di Montezemolo said: “The energies, passion and expertise I have experienced at Alitalia in recent weeks do not leave any doubt that the airline we’re unveiling today will become once again a premium Italian airline recognised worldwide. This is why I believe the people in Alitalia are a pillar of the history we’re about to write.

“Our priority is to put the customer at the centre of everything we do. And to do that, we will change many things, starting with the way we work. We need to work as one united team to achieve this great common goal.

“The revitalized Alitalia we envision and have started building, will be an asset to this country, and a driver to support the growth of our tourism and our business.”

James Hogan said Alitalia’s future will rely on major change throughout the organization.

“In a market still beset by the continuing Eurozone crisis, anything other than rapid, decisive change is simply not an option.

“This is the right strategy, with the right management team to lead it.

“But there should be no doubts at all: we have made a commercial investment that must deliver a commercial return.

“We’ve invested in the new Alitalia because we believe it can flourish again. It will only succeed if there is 100 per cent support from everyone. The coming months and next few years will not be easy, but if everyone pulls together as one team, Alitalia can grow again.”

Mr Hogan said that Alitalia’s major investors had set a clear deadline for the airline to deliver profitability by 2017.

Outlining the airline’s new strategy, Silvano Cassano said: “The new Alitalia strategy is serious, it is exciting and it is commercial. It is a strategy for success – if everybody delivers.

“It is serious because it has been developed over months by an executive team and a set of partners that share extensive and in-depth industry expertise.

“It is exciting because of the vision and ambition that we have for the brand and for the business. This is the chance to create a new Alitalia, one which Italy can truly feel proud of.

“And it is commercial because that is the only way this can work. Every single employee at Alitalia has to get into a commercial mindset, one in which the basis of every decision is: Does this add value to our customer? Does it add value to our company? And does it help us to deliver a financial return?

“We need to create a performance-based, customer-focused culture which results in a sustainably profitable airline, one which can grow over the long term.

“The investment we have received from our shareholders gives us the opportunity to do that.”

Mr Cassano added: “A successful Alitalia means jobs, it means trade and it means tourism. It means a major impact on the Italian economy.”

The key elements of the new business strategy include:

Network

A new three-hub strategy in Italy. Milan Malpensa will increase long-haul services, while Milan Linate will increase connectivity with partner airline hubs. Rome Fiumicino will grow long-haul flying and continue to expand short and medium haul flying to maintain relevance to the Italian market.

Schedules across the network will be optimized to allow better connectivity, as well as increased codesharing with existing and new partners.

New routes from Rome include Berlin, Dusseldorf, San Francisco, Mexico City, Santiago (Chile), Beijing and Seoul, with increased flights to New York, Chicago, Rio de Janeiro and Abu Dhabi.

Alitalia will also add 13 weekly flights from Milan Malpensa, with daily services to Abu Dhabi, four flights a week to Shanghai, and additional flights to Tokyo.

There will also be increased connectivity with Etihad Airways’ hub in Abu Dhabi, with daily services from Venice, Milan, Bologna and Catania, as well as additional flights from Rome, all allowing onward connections to the Middle East, Africa, the Indian subcontinent, Southeast Asia, China and Australia.

Venice will be the only Italian airport, in addition to Rome Fiumicino and Milan Malpensa, from which Alitalia will operate services to Abu Dhabi with long-haul aircraft.

Cooperation

While exploring further opportunities to deepen the relationships with Skyteam members and in particular Air France/KLM and Delta, there will be a major new partnership with Airberlin and Niki, as well as increased connectivity with Etihad Airways. There are also plans to work more deeply with Air Serbia and Etihad Regional. These partnerships will increase customer choice across many markets.

Fleet

Alitalia and Etihad Airways and its partners are exploring opportunities to improve jointly fleet efficiency. For example, Alitalia is in the process of relocating 14 Airbus A320s to Airberlin, and looking into options with Etihad Airways to acquire additional wide-body aircraft for Alitalia. Alitalia will also have opportunities to receive aircraft from Etihad Airways’ existing fleet orderbook.

Guest Services

A new customer-first culture, with new product and service standards across the airline. A new Customer Excellence Training Academy will deliver skills to all customer-facing staff, while customers will experience traditional Italian hospitality, new food service options, new-look lounges in Rome, Milan Malpensa and Milan Linate.

Brand

Alitalia will launch a new brand and visual identity, covering aircraft, uniforms and all other customer touch-points. While the name will remain unchanged, the new branding will seek to capture and embody the essence of Italy.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. The updated version (in 2006) of the basic 1969 livery will soon be history as Alitalia replaces it with a new Italian theme and look. Alitalia is also going to receive new aircraft types for its long-range routes from partner Etihad Airways. Boeing 777-243 ER EI-ISD (msn 32860) arrives in Los Angeles.

Alitalia aircraft slide show:

Video: Join Luca di Montezemolo, Chairman of Alitalia, Silvano Cassano, Chief Executive Officer of Alitalia, and James Hogan, President and Chief Executive Officer of Etihad Aviation Group and Vice Chairman of Alitalia, as they outlining the strategy for a new Alitalia.

Airberlin continues to expand its focus on Italy and connecting with Alitalia

Airberlin (airberlin.com) (Berlin) is continuing to optimize its route network with the expansion of its services to the important focus market of Italy at the beginning of the summer schedule. Starting March 29, 2015, Airberlin will operate a new daily service from Stuttgart to Rome as well as three flights a day from Stuttgart to Milan (Linate) starting in May 2015. In addition, starting in May Airberlin will expand its service on the Stuttgart to Venice route to include three new daily flights.

The number of flights from Dusseldorf to Rome is also being increased: starting March 29, Airberlin will offer six new flights from Monday to Friday as well as two flights on Sundays. Several improvements to the departure times of existing services complete the optimization of the flight program from Germany to Italy. With up to ten additional flights per week compared to last year, Airberlin will operate a total of 260 flights a week from Germany, Austria and Switzerland to Italy during summer 2015.

The new flights will be integrated in the codeshare agreement with Alitalia (3rd) (Rome) and will carry Alitalia flight numbers. All of Airberlin’s and Alitalia’s direct flights between Italy, Germany, Austria and Switzerland have been operated as codeshare flights since the start of the 2014/2015 winter schedule.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A320-214 D-ABFC (msn 4161) lands at EuroAirport serving the Basel/Mulhouse/Freiburg area.

Airberlin aircraft slide show: