Tag Archives: Airbus

JetBlue reports net income of $52 million in the second quarter

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

Operating income for the quarter was $130 million, resulting in a 10.2% operating margin, compared to operating income of $86 million and a 7.5% operating margin in the second quarter of 2011.
Pre-tax income of $86 million in the second quarter. This compares to pre-tax income of $43 million in the second quarter of 2011.
Net income for the second quarter was $52 million, or $0.16 per diluted share. This compares to JetBlue’s second quarter 2011 net income of $25 million, or $0.08 per diluted share.

Operational Performance

JetBlue reported record second quarter operating revenues of $1.3 billion, an increase of 11.0% versus last year. Revenue passenger miles for the second quarter increased 10.5% to 8.50 billion on a capacity increase of 5.5%, resulting in a second quarter load factor of 85.3%, an increase of 3.8 points year over year.

Yield per passenger mile in the second quarter was 13.78 cents, up 1.3% compared to the second quarter of 2011. Passenger revenue per available seat mile (PRASM) for the second quarter 2012 increased 6.1% year over year to 11.76 cents and operating revenue per available seat mile (RASM) increased 5.2% year over year to 12.82 cents.

Operating expenses for the quarter increased 7.7%, or $82 million, over the prior year period. JetBlue’s operating expense per available seat mile (CASM) for the second quarter increased 2.1% year-over-year to 11.51 cents.

Excluding fuel, CASM increased 5.6% to 6.99 cents, driven primarily by higher maintenance expense due to the aging of JetBlue’s fleet. JetBlue has taken several actions designed to better manage maintenance expense, including the sale and replacement of six older spare engines during the second quarter, which favorably impacts ongoing repair rates. JetBlue also sold two EMBRAER 190 aircraft that it had previously leased to a third party. JetBlue recorded approximately $10 million in gains in other operating expenses during the quarter related to the sales of these assets.

Fuel Expense and Hedging

JetBlue continued to hedge fuel to manage price volatility. Specifically, JetBlue hedged approximately 27% of its fuel consumption during the second quarter, resulting in a realized fuel price of $3.22 per gallon, a 3% decrease over second quarter 2011 realized fuel price of $3.31. JetBlue’s fuel expense reflects $1 million in losses on fuel hedges that settled during the second quarter. In addition, JetBlue recorded $4 million in mark-to-market fuel hedge accounting losses during the quarter, which is included in non-operating income/expenses.

JetBlue has hedged approximately 27% of its third quarter projected fuel requirements and 27% of its fourth quarter projected fuel requirements using a combination of collars, crude call options, and jet fuel swaps. Based on the fuel curve as of July 20th, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $3.13 in the third quarter and $3.18 for the full year 2012.

Balance Sheet Update

JetBlue ended the second quarter with approximately $1.2 billion in unrestricted cash and short term investments. In addition, JetBlue announced it has obtained a new line of credit for up to $100 million with Morgan Stanley, which is secured by a portion of its short-term investments.

During the quarter, JetBlue made approximately $220 million in debt payments, including approximately $170 million of prepayments. JetBlue recorded a $2 million gain in non-operating income during the quarter in connection with these prepayments.

Third Quarter and Full Year Outlook

For the third quarter of 2012, CASM is expected to increase between 1.0% and 3.0% over the year-ago period. Excluding fuel, CASM in the third quarter is expected to increase between 4.5% and 6.5% year over year. JetBlue expects most of this year over year increase to be driven by maintenance expense and profit sharing expense.

CASM for the full year is expected to increase between 1.0% and 3.0% over full year 2011. Excluding fuel, CASM in 2012 is expected to increase between 2.5% and 4.5% year over year.

Capacity is expected to increase between 7.0% and 9.0% in the third quarter and to increase between 6.5% and 8.5% for the full year.

Copyright Photo: Ken Petersen. Airbus A320-232 N587JB 9msn 2177) prepares to takeoff at the New York (JFK) hub. N587JB also sports the special “Building Blocks” motif.

JetBlue Airways:

After 44 years, American Airlines to have a new brand, with fuselage paint

American Airlines (Dallas/Fort Worth) is getting ready to introduce a new livery, probably now with some fuselage paint (at least for the 787s) and the new look is likely be introduced with the new Boeing 777-323 ERs on order which will usher in a large fleet overhaul. As we have been suggesting, it is time for a refresh after 44 years and the Chapter 11 reorganization process. The time is right for a new image. According to this article by the Wall Street Journal and several previous hints by AA management, a new brand is being developed. As the article states, the upcoming Boeing 787 Dreamliners, made of composite materials, are also forcing the issue to replace the all-metal “Silver Fleet”. The Dreamliners need fuselage paint. Will AA use a metallic silver paint to cover the 787s? American has for a long time, adopted the polished metal fuselage finish with just decorative paint on the fuselage.

Read the full article: CLICK HERE

Top Copyright Photo: Bruce Drum. When the Airbus A300B4-605R aircraft were first delivered to American in the 1968 livery, the fuselage was painted in this gray fuselage color to make it blend in with the all metal fleet. Airbus had recommended to the airline that it should paint the A300 fuselages. AA later found a way lto operate the A300s in the traditional bare metal finish. N18066 (msn 509) taxies to the runway at the Miami hub.

American Airlines:

Bottom Copyright Photo: Wingnut. American in its early years as American Airways liked much bolder fuselage paint for its aircraft. A repainted and restored Stinson SRC-9C Reliant NC18407 (msn 5313) shows off the 1933 lightning bolt livery at Oshkosh. Will it return to a bolder look?

Spirit Airlines’ second quarter net profit rises by 35.4% to $35.3 million

Spirit Airlines‘ (Fort Lauderdale/Hollywood) ultra low-fare business model continues to work for the carrier. The company reported second quarter 2012 financial results.

Net income, excluding special items, for the second quarter 2012 increased 35.4 percent to $35.3 million, or $0.49 per diluted share, as compared to pro forma second quarter 2011 net income.¹GAAP net income for second quarter 2012 was $34.6 million, or $0.48 per diluted share.
For the second quarter of 2012, the Company grew its operating margin, excluding special items, by 1.5 points to 16.3 percent as compared to second quarter 2011.¹ Operating margin on a GAAP basis was 15.9 percent for the second quarter of 2012.
Adjusted EBITDAR margin for the second quarter 2012 was 27.6 percent, up 1.7 points year-over-year.
Spirit ended the second quarter 2012 with $415.0 million in unrestricted cash.

(1) See “Reconciliation of Adjusted Net Income to GAAP Net Income” table below for additional information.

Revenue Performance

For the second quarter 2012, Spirit’s total operating revenue was $346.3 million, an increase of $70.4 million, or 25.5 percent, compared to second quarter 2011 on a capacity increase of 16.5 percent.

Total revenue per available seat mile (“RASM”) increased to 12.25 cents, up 7.7 percent compared to the second quarter 2011, driven by total operating yields which increased 9.1 percent year-over-year to 14.44 cents.

Passenger flight segment (“PFS”) volume grew 18.8 percent year-over-year in the second quarter 2012 with total revenue per PFS of $132.53, an increase of 5.7 percent as compared to the second quarter 2011. Spirit has continued its strategy to offer low base fares while increasing revenue from non-ticket sources. Average non-ticket revenue per PFS for the second quarter 2012 increased 18.6 percent year-over-year to $51.47 and average ticket revenue per PFS for the quarter decreased 1.1 percent year-over-year to $81.06.

Cost Performance

Total operating expenses in the second quarter 2012 were $291.2 million, up 20.9 percent compared to the same period in 2011, primarily due to expenses associated with increased flight volume. Other expense drivers included higher airport and crew-related costs as a result of network scope changes, and passenger re-accommodation costs associated with a greater percentage of flight cancellations.

Cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) for the second quarter 2012 was 6.05 cents, an increase of 11.8 percent year-over-year. Average stage length for the second quarter 2012 decreased 3.2 percent compared to the second quarter 2011, contributing an estimated 1.8 percentage points of the 11.8 percent year-over-year increase in Adjusted CASM ex-fuel. Other primary drivers of Adjusted CASM ex-fuel included start-up costs related to Spirit’s preventative seat maintenance program and passenger re-accommodation costs associated with flight cancellations.

Start-up costs related to the Company’s seat maintenance program were approx $3 million in the second quarter. The Company estimates it will incur additional start-up costs related to this program of about $4.5 million in the second half of 2012.

Selected Balance Sheet and Cash Flow Items

At the end of the second quarter 2012, Spirit had $415.0 million in unrestricted cash and cash equivalents and no restricted cash balance. As of June 30, 2012, the Company had no debt on its balance sheet and total shareholders’ equity of $527.3 million.

During the second quarter, the Company had capital expenditures of $9.4 million which included the purchase of one spare engine, paid $7.4 million in pre-delivery deposits (“PDPs”) for future deliveries of aircraft and spare engines, had $10.7 million of PDPs returned related to aircraft delivered in the quarter, and paid $11.8 million in maintenance reserves, net of reimbursements. In addition, during the second quarter, the Company paid $26.9 million to its pre-IPO stockholders under the terms of a Tax Receivable Agreement.

Fleet

Spirit took delivery of two A320s in the second quarter, ending the quarter with 42 aircraft in its fleet. Spirit expects to take delivery of two additional A320s before year-end 2012.

Second Quarter 2012 and Other Current Highlights

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

– Denver and Chicago (5/3/12)	– Dallas/Fort Worth and Houston (9/20/12)
– Denver and Dallas/Fort Worth (5/3/12)	– Chicago and Tampa (11/8/12)*
– Denver and Fort Lauderdale (5/3/12)	– Chicago and Phoenix/Mesa (11/8/12)*
– Denver and Las Vegas (5/3/12)	– Minneapolis/St. Paul and Fort Lauderdale (11/8/12)*
– Dallas/Fort Worth and Myrtle Beach (5/3/12)	– Minneapolis/St. Paul and Fort Myers (11/8/12)*
– Dallas/Fort Worth and Tampa (5/3/12)	– Dallas/Fort Worth and Fort Myers (11/8/12)*
– Atlantic City and Atlanta (5/17/12)*	– Boston and Fort Myers (11/8/12)*
– Latrobe/Pittsburgh and Orlando (5/17/12)	– Dallas/Fort Worth and New Orleans (1/24/13)
– Minneapolis/St. Paul and Chicago (5/31/12)	– Dallas/Fort Worth and Oakland (4/25/13)
– Minneapolis/St. Paul and Las Vegas (5/31/12)	– Dallas/Fort Worth and Los Angeles (4/25/13)
– Dallas/Fort Worth and Toluca/Mexico City (6/21/12)	– Dallas/Fort Worth and Minneapolis/St. Paul (4/26/13)
– Dallas/Fort Worth and Detroit (6/21/12)	– Dallas/Fort Worth and Philadelphia (4/26/13)
– Dallas/Fort Worth and San Diego (6/21/12)	– Dallas/Fort Worth and Latrobe/Pittsburgh (6/14/13)
– Dallas/Fort Worth and Portland, Oregon (6/21/12)	– Dallas/Fort Worth and Los Cabos, Mexico**
– Dallas/Fort Worth and Baltimore/Washington (9/6/12)	– Dallas/Fort Worth and Cancun, Mexico**
– Fort Lauderdale and Baltimore/Washington (9/6/12)	– San Diego and Los Cabos, Mexico**

*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. Schedules will be announced upon receipt of necessary governmental approval. The DOT has recently approved Spirit’s application to begin nonstop service between Dallas/Fort Worth and Cancun, Mexico and schedules will soon be announced.

Copyright Photo: Michael B. Ing. Airbus A319-132 N508NK Climbs away from Los Angeles International Airport dressed in the 2004 livery.

Spirit Airlines:

Frontier Airlines announces nonstop flights between Denver and South Bend starting on October 11

Frontier Airlines (2nd) (Denver) today announced new nonstop service between its Denver, Colorado (DEN), hub and South Bend, Indiana (SBN), with four weekly nonstop flights beginning on October 11, 2012.

Following is the schedule for Frontier’s South Bend service:

Denver-South Bend (beginning Oct. 11, 2012)

Route

Departs

Arrives

Frequency

Aircraft

DEN-SBN

7:02 p.m.

11:33 p.m.

Tue/Thur/Sat/Sun

A319

SBN-DEN

10:07 a.m.

10:50 a.m.

Mon/Wed/Fri/Sun

A319

The new service will operate on 138-seat Airbus A319 aircraft.

Copyright Photo: Michael B. Ing. Airbus A319-111 N938FR with Misty, the Arctic Fox, on the tail, climbs away from Los Angeles International Airport.

Frontier Airlines:

American Airlines outlines its upgraded fleet and interiors plans

American Airlines (Dallas/Fort Worth) today has outlined its fleet plans and upgraded interiors plans.

Here is the full statement:

“American Airlines continues plans to enhance and modernize travel with today’s announcement of customer-pleasing interiors onboard its more than 200 new narrowbody deliveries from Airbus and Boeing – these are a part of the previously announced order for 460 new aircraft.

“We intend to be the only airline to offer a three-class service and the first to offer fully lie-flat First and Business Class seats on transcontinental flights with our Airbus A321 transcontinental aircraft,” said Virsab Vahidi, American’s Chief Commercial Officer. “By using the A321 aircraft with three classes of service and outfitted with fully lie-flat premium class seats, all-aisle access in First Class, and state-of-the-art amenities, we will be able to continue providing an industry-leading premium experience on transcontinental routes, while significantly reducing costs through improved fuel efficiency.”

As previously announced, American plans to take delivery of 130 current generation Airbus aircraft from the A321 and A319 variants and up to 100 Boeing 737-800s through 2017. American plans to configure some of the A321s for use on transcontinental flights and intends to use the remaining A321s, as well as all of the A319s and new Boeing 737-800s to retire aging aircraft in its existing fleet.

Designed in partnership with James Park Associates (JPA), the overall design, trim and finish of these aircraft will reflect the look and feel of the new American and will complement the interior design scheme of the airline’s highly anticipated Boeing 777-300 ERs and redesigned 777-200 ERs to provide customers with a more consistent experience between aircraft types.

In addition to modern interiors, these aircraft will also keep customers connected with inflight Wi-Fi throughout the aircraft; entertained with in-seat entertainment at every seat; and fully charged with individual 110-volt universal AC power outlets and USB jacks at every seat. Plus, Main Cabin Extra seating, installed on all new deliveries beginning in August 2012 on the Boeing 737-800, will offer the option of more legroom and priority boarding privileges.

All of these new deliveries also incorporate the latest improvements to reduce fuel burn which helps American continue on the path toward reducing its carbon footprint.

A321 Transcontinental

The First Class cabin (see below) will be outfitted with 10 fully lie-flat seats in a 1-1 configuration, giving every seat direct aisle access – a feature that no other domestic airline offers. Customers can individually adjust any component of the fully lie-flat seat, designed by Sicma, including the seat back, head rest and leg rest. The seats feature a large tray table and work surface and an individual storage unit for stowing personal items. Seat controls have a more intuitive design for optimum customer comfort and simplicity.

The Business Class cabin will be outfitted with 20 fully lie-flat seats, designed by BE, in a 2-2 configuration. In the Main Cabin the seats will be designed by Recaro and arranged in a 3-3 configuration. The option to enjoy more legroom is available with 36 Main Cabin Extra seats and the aircraft also offers 36 Main Cabin seats. More details about the Business Class and Main Cabin seats will be provided at a later date.

To ensure customers traveling from coast to coast have access to the latest in inflight entertainment, American plans to outfit the entire aircraft with seat-to-seat chat, live text news and weather updates, 3-D moving maps, airport maps, connecting gate information, and more.

For customers traveling in the premium class cabins, a complimentary inflight entertainment selection of up to 75 movies, more than 150 TV programs, more than 350 audio selections and up to 15 games will be available on a 15.4-inch HD-capable touchscreen monitor positioned in each seat. Bose^® QuietComfort^® 15 Acoustic Noise Cancelling^® headsets will be available.

In the Main Cabin, every seatback will have an 8.9-inch HD-capable touchscreen monitor with an assortment of movies, TV programs, games and audio selections.

American intends to take delivery of these aircraft beginning in November 2013 through 2014. The A321 transcontinental aircraft will replace American’s existing fleet of Boeing 767-200s and fly between New York’s John F. Kennedy International Airport (JFK) and San Francisco International Airport (SFO), and JFK and Los Angeles International Airport (LAX).

A321, A319 and Boeing 737-800

The remaining A321s, as well as all of the A319s and 100 Boeing 737-800 new deliveries, will enrich the inflight experience with modern technology and entertainment options for customers traveling throughout the United States.

American intends to replace its fleet of domestic Boeing 757-200s and DC-9-82/83s (MD-80s) with A321s, A319s and Boeing 737-800s – all with leather seats, Wi-Fi and in-seat inflight entertainment throughout the aircraft. These aircraft will have a two-class cabin configuration, Main Cabin Extra seating and 110-volt universal AC power outlets at every seat.

Similar to the innovative inflight entertainment capabilities of the A321 transcontinental aircraft, American also plans to give customers onboard these aircraft access to seat-to-seat chat, weather updates, 3-D moving maps, airport maps, connecting gate information and more.

For customers traveling in the First Class cabin, a complimentary inflight entertainment selection of up to 75 movies, more than 150 TV programs, more than 350 audio selections and up to 15 games will be available on a 12.1-inch HD-capable touchscreen monitor positioned in each seat. Customers in the Main Cabin will also enjoy an assortment of movies, TV programs, games and audio selections on 8.9-inch HD-capable touchscreen monitors in each seat.

These aircraft will be delivered beginning with the A319s in July 2013, followed by the Boeing 737-800s in October 2013 and the A321s in the second quarter of 2014. American is still evaluating the specific markets these aircraft will serve.

American’s new narrowbody deliveries are part of a series of investments the airline is making to renew its fleet and an integral piece of the plan to transform it into the youngest fleet among the major U.S. airlines in the next five years. For example, in May American announced plans to redesign its fleet of 777-200 ERs to offer fully lie-flat Business Class seats with all-aisle access, Main Cabin Extra seating, Wi-Fi and in-seat entertainment throughout the aircraft. American also announced plans to refresh up to half of its fleet of 767-300 ERs to include fully lie-flat Business Class seats with all-aisle access and Main Cabin Extra seating. American also has orders for 10 Boeing 777-300E Rs that are anticipated for delivery beginning later this year.

American’s fleet renewal efforts serve to modernize and enhance the fleet in order to emerge from the restructuring process a stronger, new American.”

Top Copyright Photo: Michael B. Ing. Boeing 737-823 N937AN departs from Los Angeles International Airport.

American Airlines:

Bottom Copyright Photo: American Airlines. The Airbus A321 First Class Cabin. According to the airline, “When you travel between New York’s JFK and San Francisco International Airport, and between JFK and Los Angeles International Airport, you’ll appreciate that American plans to be the only carrier to offer you a three-class cabin, plus fully lie-flat First and Business Class seats including all-aisle access from every First Class seat on our Airbus A321 Transcontinental aircraft. These planes will also offer the option of four to six more inches of legroom with Main Cabin Extra seating.”

China Airlines becomes the first Asian airline to join the Pacific Greenhouse Gases Measurement project

China Airlines (Taipei) has dedicated one of its Airbus A340-300s for climate monitoring analysis, becoming the third airline after Lufthansa and Air France. China Airlines will be followed by Cathay Pacific later this year.

The company has issued the following statement:

“The first China Airlines (CAL) A340-300 equipped with IAGOS (In-service Aircraft for a Global Observing System) instruments was officially unveiled on June 26. The aircraft livery combines an image of a flight attendant with environmental motifs, emphasizing CAL’s active contribution to global environmental protection as part of its corporate social responsibility. Through the new airplane, CAL invites passengers to participate in ecology preservation through green energy and environmental protection.

In support of the “Pacific Greenhouse Gases Measurement Project” being run jointly by Taiwan’s Environmental Protection Administration (EPA), the National Science Council and the National Central University, CAL’s Airbus 340-300 aircraft with the identity number B-18806 has been installed with the IAGOS instrument. CAL is therefore the first Asian airline to join the PGGM (Pacific Greenhouse Gases Measurement) project to monitor greenhouse gases and the first to operate an IAGOS-equipped aircraft for taking atmospheric measurements on trans-Pacific routes.

The IAGOS instrumentation is installed in the avionic compartment underneath the cockpit on the CAL A340-300 passenger aircraft. A sampling port extending from fuselage collects data on atmospheric gases, water vapor, ozone, carbon monoxide and nitrogen oxide during each flight. The collected data is automatically transmitted by satellite to the European research center after landing, providing the global scientific community with valuable data for research on global warming and climate change. The EPA and the National Central University will also combine the data collected by CAL with observations from FORMOSAT-3 satellite, ground weather stations and sea observations to analyze the sources and vectors of air pollution. The information can be used as a reference when formulating air pollution control policy.

The CAL climate observation aircraft has made its maiden return trip to Hong Kong. The aircraft will mainly operate on the Taipei-Vancouver route in the future to facilitate the recording of atmospheric data over the Pacific. The official name of the project “PGGM-Pacific Greenhouse Gases Measurement¨ is painted on the nose of the aircraft while both sides of the fuselage will display “The Official Airline for Climate Monitoring¨. The aircraft livery itself features the Earth cradled by a flight attendant to inspire passengers to protect the environment. CAL’s President, Huang-Hsiang Sun has set this year as “Eco Year “. Apart from actively promoting a green quality policy and corporate environmental management, CAL is continuing to introduce more eco-friendly services through paperless electronic operations, use of local food ingredients, recycling and reuse items. CAL hopes these initiatives will inspire more passengers to take part in energy saving.

In 2011 the EPA presented CAL with an award for outstanding performance under the “Energy Conservation and Carbon Reduction Action Mark¨. In the following year, CAL also won “Super Green” Judge’s Award as well as the First Prize in the transportation category of the third “2012 Green Brand Survey” conducted by Business Next magazine. The awards all served to recognize CAL’s long-term support for the environment. CAL is now also promoting e-Check In, mobile electronic boarding passes, self-printed boarding passes, KIOSK services and self-printed luggage tags. The e-services will help CAL achieve the goal of paperless operations and CAL is now the most effective airline at implementing electronic operations in Taiwan.”

Top Copyright Photo: Manuel Negrerie. Airbus A340-313X B-18806 (msn 433) taxies at the Taipei base with the special stickers.

Hot New Photos:

China Airlines:

Bottom Copyright Photo: China Airlines.

Air New Zealand to remove its blue-turquoise tail from its livery

Air New Zealand (Auckland) is further reducing the “color” in its “color scheme”. According to this report by the airline via its “The Flying Social Network”, the flag carrier will remove its blue and turquoise tail combination next year to a very unexciting black tail with its traditional white Koru logo. The black titles are being updated with a new font style. The rest of fuselage is a boring all-white.

Current logo:

Read the full story: CLICK HERE

Top Copyright Photo: Michael B. Ing. Air New Zealand has been gradually reducing “color” in its livery with each change. The most recent change was to remove the “Pacific Wave” fuselage accent marks from the original 1996 color scheme. Previously the 1996 color scheme update had removed the blue and turquoise fuselage cheat lines of the more colorful 1973 livery. Boeing 747-475 ZK-SUH arrives at Los Angeles in the basic 1996 livery minus the Pacific Wave fuselage marks which were removed in 2008.

Air New Zealand:

View the 1973 livery: CLICK HERE

Bottom Copyright Photo: Micheil Keegan. Did the special All Blacks color scheme influence the carrier to go a very basic black and white livery? Airbus A320-232 ZK-OAB (msn 4553) arrives at Auckland.

Airberlin to reduce winter schedules at Hamburg due to the aviation tax

Airberlin (airberlin.com) (Berlin) will adjust its winter capacity according to existing market requirements. The airline is canceling unprofitable routes during the upcoming winter. According to the carrier, “the additional burden caused by aviation tax has meant that a number of flight connections can no longer be operated profitably and must therefore be completely removed from the winter schedule.”

Airberlin is removing routes from the winter schedule that are unprofitable due to the reduced capacity utilization. From Hamburg flights to Karlsruhe, Barcelona and Zurich will be dropped. This reduces the winter schedule in Hamburg from the 220 flights to 182 flights per week.

Airberlin is also canceling Stuttgart – Milan and the flight between Sylt and Cologne. Overall Airberlin is reducing its winter capacity by two percent compared to the winter schedule of 2011/12.

Airberlin:

South African Airways introduces its 2012 London Olympics logojet

South African Airways (Johannesburg) brought its newly-decorated Airbus A340-313X registered as ZS-SXD (msn 642) to London (Heathrow) for the first time. ZS-SXD is painted in a special 2012 London Olympics color scheme.

The aircraft was officially unveiled on July 18. South African issued the following statement:

“South African Airways on July 18, 2012 revealed the fully branded aircraft that will fly Team South Africa and officials to the London 2012 Olympic Games on July 19, 2012. The spectacular design painted on the aircraft was created by Adri le Roux, a first year design student at Stellenbosch University.

The long-haul Airbus A340-300 is set to cause a splash at international airports with its bold and colorful images of South African swimmers, runners, soccer players and other sports stars.

SAA issued a public competition challenging South African youth of ages 13-21 to design an iconic visual which captures the spirit of South Africa. The judging criteria included creative flair and an eye for design. Furthermore, the simplicity and longevity of the design was considered, with the third and final criteria being how the design compliments SAA’s internationally recognised branding.

The design of the aircraft is colorful and vibrant and uses the colors of the South African flag to create brush strokes covering the plane. The sportsmen and women in the stroke illustrate the speed and excellence with which the SA Olympic team performs on the field.

As an official air transportation partner to the South African Sports Confederation and Olympic Committee (SASCOC), SAA will fly athletes and officials to London for the Olympics, which takes place from July 27, 2012 to August 12, 2012. SAA will also fly athletes and participants to the Paralympics, scheduled for August 29, 2012 to September 9, 2012.

Adjudication of the competition to design the Olympic aircraft’s special livery was conducted by a panel of technical, arts, and design professionals. On the panel were South Africa’s National Herald Mr. Themba Mabaso, SAA Technical Senior Engineering Analyst: Mr. JJ Pretorius, Vega School of Arts lecturer Mr. Matthew Partridge, and Mr. Steve Knapp, Art Director at Brand Activation. The results were audited by Ernst and Young, SAA’s auditing firm.”

Hot New Photos:

South African Airways:

US Airways’ CEO Doug Parker makes his case for a merger with American Airlines before the National Press Club

US Airways Group, Inc. (Phoenix) announced its Chairman and CEO Doug Parker presented at yesterday’s (July 18) National Press Club Luncheon in Washington, D.C. Mr. Parker discussed the current state of the airline industry, the positive impact of mergers for the industry and the benefits of a merger between US Airways and American Airlines. Mr. Parker was joined at the head table at the National Press Club by the leadership of American Airlines’ three unions, representing 55,000 American Airlines employees: Captain David Bates, President of the Allied Pilots Association; Laura Glading, President of the Association of Professional Flight Attendants; and John Conley, International Vice President and Assistant to the International President, Jim C. Little, of the Transport Workers Union.

Mr. Parker discussed the benefits of mergers in the industry. He noted how mergers have benefited United and Continental, Delta and Northwest, Southwest and AirTran, and America West and US Airways. In addition, Mr. Parker pointed out that there are real advantages to combining airlines for employees, customers and communities:

“All four combined airlines provide better networks and are now profitable. By combining complementary networks to provide more attractive and efficient service, mergers have led to increased traffic, cost reductions, and vigorous competition … The benefits of this trend extend way past the bottom line: there are real advantages to combining airlines for employees, customers and communities. Employees will benefit from greater job security and more long-term opportunities if they’re working for a successful airline. Customers will gain more flight options at better times to more places. And whenever two airlines combine, they open the communities that they serve to many more new travelers.”

Mr. Parker outlined the fundamental network challenges that stem from American Airlines’ “cornerstone” strategy, which focuses on five large cities instead of a comprehensive network. Mr. Parker described how American Airlines has lost market share across the United States and why the cornerstone strategy does not address the network deficiencies of American Airlines versus United and Delta:

“Simply put, American has hubs in Dallas, Chicago and Los Angeles to connect people around the United States, and strong international gateways in both JFK and Miami. But that leaves a large hole in the network up and down the East Coast. This means American cannot easily serve the popular and highly lucrative East Coast region, which causes it to miss out on an enormous source of corporate business, as well as all the consumers who travel up and down the Eastern seaboard.”

Mr. Parker explained how a merger with US Airways solves American Airlines’ network challenges and creates a more comprehensive network. In particular, he noted that the networks are complementary and combining them would result in significant benefits to all stakeholders, including customers, communities, US Airways shareholders, American Airlines creditors and employees:

“A combination with US Airways would create such a network. We’ve taken a long, hard look at American, and we know that together we can build the greatest airline in the world—an airline that can compete more effectively with the networks of United, Delta and others. Together, American and US Airways can connect more communities and provide greater benefits for American’s creditors and US Airways’ shareholders than either airline could on a standalone basis. Furthermore, we would also save thousands of jobs and offer better compensation and long-term opportunities for employees of both airlines.”

Mr. Parker highlighted American Airlines’ merger protocol, which American Airlines recently announced it was ready to move forward with, and reiterated his desire to present US Airways’ plan to American Airlines:

“All that we want is a fair chance to present our plan, and to compare it to all others in a process that doesn’t disadvantage any of the options, and that determines the best plan based on what is best for the owners of AMR—its creditors. We understand there may be as many as four other airlines included in this merger analysis project, and we welcome the competition. We are certain that any objective analysis will conclude that the best plan for the creditors, employees and customers of American is a merger with US Airways during the bankruptcy process.”

Mr. Parker praised the efforts of American Airlines’ three unions – the Allied Pilots Association, the Association of Professional Flight Attendants and the Transport Workers Union – to support the merger:

“The decision by those labor leaders to come out in support of a merger was an unprecedented move on their part, and I think is one of the great untold stories of this process so far. Some people improperly characterize their support as being driven by US Airways’ willingness to pay their members more. But as they will tell you, the gap between our proposals and American’s is not very large. Their support is not driven by short-term gains, but rather by the fact they have taken the time to study the long term strategic underpinnings of each plan. They have hired advisors to help them and they have listened and led. In the end, they have supported this merger because they understand the best thing for their members is a strong, competitive merged airline with a long-term strategic advantage.

The employees of American Airlines are lucky to have these forward-thinking leaders representing them and I’m proud to be working with them.”

A replay of the webcast is available at http://www.press.org/events/npc-luncheon-doug-parker-ceo-us-airways. A copy of Mr. Parker’s speech, as prepared, is available athttp://www.usairways.com/en-US/aboutus/investorrelations/webcast.html.

Copyright Photo: Jay Selman. US Airways has become what it is today through mergers of several local service airlines including Piedmont Airlines. The company honors its colorful past with its legacy logojets. Airbus A319-112 N744P climbs aways from the Charlotte hub dressed in Piedmont Airlines 1974 color scheme.

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