Tag Archives: Airbus A320-271N WL

American Airlines and IndiGo announce codeshare agreement

IndiGo Airlines Airbus A320-271N WL F-WWDQ (VT-IVQ) (msn 8387) TLS (Paul Bannwarth). Image: 942970.

American Airlines issued this statement about a new codeshare partner:

  • American Airlines and IndiGo announce a codeshare agreement, making it easier than ever for customers to travel to India.
  • American’s customers will have access to 29 new routes from Bengaluru and Delhi.
  • AAdvantage members will earn miles when traveling on American codeshare flights operated by IndiGo.

American Airlines is opening new doors across India this fall thanks to a new codeshare agreement with IndiGo, India’s leading airline.

The agreement, announced today, will place American’s code on 29 of IndiGo’s domestic routes in India, providing a convenient option for American Airlines customers arriving on the carrier’s new Bengaluru (BLR) and Delhi (DEL), India, flights. The codeshare, which will require U.S. and Indian governments’ approvals, is expected to begin in October, as American launches new service between New York (JFK) and DEL on Oct. 31 and between Seattle (SEA) and BLR on Jan. 4, 2022.

IndiGo, India’s largest airline by number of passengers carried, is based in Gurgaon, Haryana, India. With its fleet of 275+ aircraft, the airline operates more than 1,100 daily flights, connecting 70 domestic destinations and 24 international destinations. Since its founding in 2006, IndiGo’s 23,000 employees have professionally served more than 300 million customers.

Top Copyright Photo: IndiGo Airlines Airbus A320-271N WL F-WWDQ (VT-IVQ) (msn 8387) TLS (Paul Bannwarth). Image: 942970.

IndiGo aircraft slide show:

ALC announces lease placement of 10 new Airbus A321-200neos and sale and lease-back of 5 new Airbus A320-200neos with Spirit Airlines

Spirit Airlines Airbus A320-271N WL N927NK (msn 9075) LAX (Michael B. Ing). Image: 954948.

Air Lease Corporation (ALC) has announced long-term lease placements for ten new Airbus A321-200neo aircraft and sale and lease-backs of five new Airbus A320-200neo aircraft with Spirit Airlines.

The five A320neos are scheduled to deliver to Spirit Airlines in 2021 and 2022 and will be owned by one of ALC’s managed aircraft ventures through funds managed by Waterfall Asset Management.

The ten A321neos are scheduled to be delivered to Spirit Airlines from ALC’s order book with Airbus beginning in 2023 through 2024.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N927NK (msn 9075) LAX (Michael B. Ing). Image: 954948.

Spirit Airlines aircraft slide show:

Spirit Airlines is finally coming to Miami

2021 "Spirit Untamed" promotional livery

Spirit Airlines has long had a competitive hub at lower-cost Fort Lauderdale-Hollywood Airport (FLL). Now the growing carrier is planning to expand to nearby Miami International Airport (MIA) in October following the moves of other low-cost carriers.

Spirit Airlines is planning to fly from MIA up to 30 domestic and international destinations starting on October 6, 2021.

Current Spirit routes from the FLL hub:

Frontier Airlines has also been expanding at MIA along with Southwest Airlines.

This will put increased pressure on American Airlines’ hub at MIA.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N932NK (msn 10008) (Spirit Untamed) BWI (Brian McDonough). Image: 953897.

Spirit Airlines aircraft slide show:

Spirit Airlines prices its offering of 10,594,073 shares of its common stock at $35.05 a share

Spirit Airlines has announced it has priced its underwritten public offering of $440,000,000 aggregate principal amount of 1.00% convertible senior notes due 2026 (the “Convertible Notes” and such offering, the “Convertible Notes Offering”). The net proceeds to Spirit from the Convertible Notes Offering, after deducting underwriting discounts and other offering expenses, are expected to be approximately $428.3 million.

Spirit has granted the underwriters of the Convertible Notes Offering a 30-day option to purchase up to $60,000,000 aggregate principal amount of additional Convertible Notes, solely to cover over-allotments, in the Convertible Notes Offering. The Convertible Notes will be convertible by holders if certain conditions are met, and during certain periods, based on an initial conversion rate of 20.3791 shares of common stock per $1,000 principal amount of the Convertible Notes, which is equivalent to a conversion price of approximately $49.07 per share, representing a premium of approximately 40.0% over the last reported sale price of $35.05 per share of Spirit’s common stock on April 28, 2021. Spirit will settle conversions of the Convertible Notes in cash or a combination of cash and shares of common stock, at Spirit’s election.

Spirit also separately priced its registered direct offering of 10,594,073 shares of its common stock at an offering price of $35.05 per share (the “Common Stock Offering”).

Spirit expects to use approximately $368.7 million of the net proceeds from the Common Stock Offering to redeem $340.0 million aggregate principal amount of its 8.00% Senior Secured Notes due 2025 at a redemption price equal to 108.0%, plus accrued and unpaid interest on the principal amount being redeemed up to, but excluding, the redemption date. Spirit expects to use the net proceeds from the Convertible Notes Offering (together with existing cash on hand, if the underwriters do not exercise their option to purchase additional Convertible Notes) to repurchase approximately $146.8 million aggregate principal amount of its outstanding 4.75% Convertible Senior Notes due 2025 (the “2025 Convertible Notes”) for approximately $440.7 million, including accrued and unpaid interest on the 2025 Convertible Notes repurchased, pursuant to privately negotiated agreements with a limited number of current holders of such 2025 Convertible Notes, which agreements are conditioned upon the consummation of the Convertible Notes Offering. Spirit expects to use the remaining net proceeds from the Common Stock Offering and any remaining net proceeds from the Convertible Notes Offering for general corporate purposes. Each of the Common Stock Offering and the Convertible Notes Offering is expected to close on April 30, 2021, subject to customary closing conditions. The closing of neither the Common Stock Offering nor the Convertible Notes Offering is conditioned upon the closing of the other offering.

Delivered on January 30, 2020

Above Copyright Photo: Spirit Airlines Airbus A320-271N WL N925NK (msn 9407) FLL (Andy Cripps). Image: 949115.

Spirit Airlines aircraft slide show:

Spirit Airlines loses $112.3 million in the first quarter

Delivered on November 9, 2019

Spirit Airlines, Inc. today reported first quarter 2021 financial results.

The company ended the first quarter 2021 with $1.9 billion of unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility

First Quarter 2021

As Reported                           Adjusted

First Quarter 2020

As Reported                  Adjusted

(GAAP)                             (non-GAAP)1

          (GAAP)                      (non-GAAP)1

Total Operating Revenues

$461.3 million                      $461.3 million

       $771.1 million                 $771.1 million

EBITDA

$(28.2) million                    $(199.7) million

$8.0 million                   $8.0 million

EBITDA Margin

   (6.1)%                              (43.3)%

1.0%                            1.0%

Pre-tax Income (Loss)

$(138.2) million                   $(307.9) million

       $(74.6) million               $(74.6) million

Net Income (Loss)

$(112.3) million                   $(242.5) million

        $(27.8) million               $(58.9) million

Diluted Earnings (Loss) Per Share

   $(1.15)                             $(2.48)

$(0.41)                         $(0.86)

“We were very pleased to see how well both our domestic and international network performed as demand strengthened in the last few weeks of the quarter. This strength, along with improvement in forward bookings, drove positive cash from operations for the full first quarter 2021 even when excluding the payroll support program funds received. Assuming these trends continue, we believe we can achieve a positive Adjusted EBITDA margin for the full year 2021,” said Ted Christie, Spirit’s President and Chief Executive Officer. “While acknowledging that the recovery is still in progress and may not be linear, we continue to believe we will be among the first U.S. carriers to reach sustained profitability.”

COVID-19
Since its initial onset in early 2020, the impact of the COVID-19 pandemic has evolved and continues to be fluid. Therefore, the Company’s financial and operational outlook remains subject to change. The Company continues to monitor the impact of the pandemic on its operations and financial condition, and to adjust its mitigation and operational strategies, accordingly, in order to protect the long-term sustainability and growth of the Company. Spirit has implemented measures for the safety of its Guests and Team Members as well as to mitigate the impact of COVID-19 on its financial position and operations. Please see the Company’s Quarterly Report on Form 10-Q for the period ending March 31, 2021 for additional disclosures regarding these measures.

Capacity and Operations
Load factor for the first quarter 2021 was 72.1 percent on a year-over-year capacity decrease of 26.9 percent. During the first quarter 2021, the U.S. government implemented negative COVID-19 testing requirements for all inbound international travelers entering the United States. About 12 percent of Spirit’s first quarter 2021 capacity was negatively impacted by this new regulation.

Spirit continued to deliver strong operational results during the first quarter 2021. As measured by the DOT, first quarter 2021 Completion Factor2 was 98.6 percent and on-time performance2 was 85.3 percent.

Revenue Performance
Total operating revenues for the first quarter 2021 were $461.3 million, a decrease of 40.2 percent year over year as a result of continued negative impacts to demand for air travel due to the COVID-19 pandemic. Early in the first quarter 2021, the Company experienced another setback in demand as the new international testing requirements were implemented and some states increased jurisdictional restrictions following spikes in COVID-19 case counts. However, in March 2021, as the vaccine rollout gained traction and jurisdictional restrictions eased, domestic and international demand rebounded strongly.

For the first quarter 2021, total revenue per passenger flight segment (“Segment”) decreased 16.4 percent year over year to $84.27. Fare revenue per Segment decreased 24.2 percent to $31.84 while non-ticket revenue per Segment decreased 10.8 percent to $52.433. As has been the case since the start of the COVID-19 pandemic, non-ticket revenue per segment for the first quarter 2021 was impacted by the suspension or reduction of certain booking-related fees; however, as the quarter progressed and domestic and international demand strengthened, average non-ticket revenue per segment improved to above $55.00 for most of March 2021.

Cost Performance
For the first quarter 2021, total GAAP operating expenses decreased 32.0 percent year over year to $563.8 million, primarily due to the grant component of the funding received through the payroll support program (further discussed below). Adjusted operating expenses for the first quarter 2021 decreased 11.5 percent year over year to $733.5 million4. The decrease in adjusted operating expenses was primarily driven by reductions in various flight-volume related expenses compared to the first quarter last year, such as fuel, ground handling and distribution. These decreases were partially offset by higher aircraft rent and higher depreciation and amortization. Additionally, despite the significant decrease in flight operations compared to the first quarter last year, some variable expenses increased. Salaries, wages and benefits increased marginally due to increased costs related to Team Member benefits, primarily driven by a higher volume of health insurance claims, and landing fees and other rents also increased year over year due to rate increases at various airports Spirit serves and decreases in signatory adjustment credits.

“Our first quarter 2021 Adjusted EBITDA margin of negative 43.3 percent was better than we initially expected due to both revenue and non-fuel operating expense coming in at the better end of our range. Since the beginning of March 2021, demand trends have been progressively improving. Assuming these trends continue, we estimate our second quarter 2021 Adjusted EBITDA margin will be between negative 5 percent to breakeven, assuming a fuel price per gallon of $1.95,” said Scott Haralson, Spirit’s Chief Financial Officer. “With our industry-leading low cost structure, we remain confident that the strength of our business model will allow us to fully capitalize on the growth potential ahead of us and drive sustainable, long-term value for our shareholders.”

Fleet
Spirit took delivery of two new A320neo aircraft during the first quarter 2021, financed through direct operating leases, and purchased two A319ceo aircraft off lease. The Company ended the quarter with 159 aircraft in its fleet.

Liquidity and Capital Deployment
Spirit ended first quarter 2021 with unrestricted cash, cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility of $1.9 billion.

Total capital expenditures for the first quarter 2021 were approximately $92 million, primarily related to pre-delivery deposits associated with future aircraft deliveries and the purchase of two A319 aircraft off lease.

On March 12, 2021, the Company entered into the First Amendment to Credit and Guaranty Agreement (the “First Amendment”), amending its existing Senior Secured Revolving Credit Facility. The First Amendment increases the existing lending commitments by $60 million, for total lending commitments of $240 million, and extends the maturity date from March 30, 2022 to March 30, 2024. The additional $60 million remained undrawn as of March 31, 2021.

On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law. This new legislation extended the payroll support program of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) through March 31, 2021 (“PSP2”). On January 15, 2021, the Company entered into an agreement with the United States Department of the Treasury (“Treasury”) in connection with the PSP2 funding. During the first quarter of 2021, the Company received a total of $184.5 million through the PSP2, used exclusively to pay for salaries, wages and benefits for the Company’s Team Members through March 31, 2021. Of that amount, a total of $25.3 million is in the form of a low-interest, 10-year loan. Also, in connection with its participation in the PSP2, the Company issued warrants to the Treasury to purchase up to 103,761 shares of the Company’s common stock at a strike price of $24.42 per share (the closing price of the shares of the Company’s common stock on December 24, 2020). The remaining amount of $156.5 million, net of related costs, is in the form of a grant and was recognized within special credits on the Company’s condensed consolidated statements of operations during the first quarter 2021.

The American Rescue Plan Act of 2021 (“ARP”) was enacted on March 11, 2021, authorizing Treasury to provide additional assistance to passenger air carriers that received financial assistance under PSP2 (“PSP3”). Under the ARP, Treasury will provide up to $14 billion to fund the PSP3 for employees of passenger air carriers. In April 2021, the Company was notified that, subject to final execution of an agreement with Treasury, it will receive approximately $197.9 million under the PSP3 and an additional $27.7 million under the PSP2. The PSP3 extends certain restrictions imposed on participating airlines, including the restriction to refrain from conducting involuntary furloughs or reducing pay rates and benefits until September 30, 2021.

Diluted Share Count
The Company elected to early adopt ASU No. 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” effective January 1, 2021. Per ASU No. 2020-06, if the Company records a net profit, it will use the “If-Converted Method” for its convertible debt. The dilutive impact from the convertible debt under the “If-Converted Method” based on the convertible debt outstanding as of March 31, 2021 would have been 13.7 million shares had the Company recorded a net profit. The Company anticipates it will continue to use the Treasury Stock Method for the dilutive impact related to outstanding warrants.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N918NK (msn 9259) FLL (Ken Petersen). Image: 948841.

Spirit Airlines aircraft slide show:

Volaris announces the addition of eight incremental Airbus A320neo aircraft in 2021

Promoting Wonder Woman 1984 on HBO MAX

Volaris has made this announcement:

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris), the ultra-low-cost airline serving Mexico, the United States and Central America, has announced the addition of eight more Airbus A320neo aircraft to its fleet in 2021, on top of the three aircraft from its purchase order with Airbus, closing the year with at least 98 aircraft.

Volaris has been able to take advantage of the favorable leasing market conditions under which these aircraft can be added to the fleet, all on long-term leases. Our competitors have been scaling down and this has represented an unprecedented opportunity for Volaris to add additional healthy capacity.

As the vaccination rollout gains momentum in our markets, confidence in air travel has accelerated accordingly and therefore Volaris will be incorporating eight additional A320neo aircraft to its fleet in 2021 through straight operating leases, five of which will enter into service this summer. This additional capacity will be deployed primarily to strengthen our leading position in the Mexican domestic market. The Company is evaluating further market opportunities to add additional aircraft.

These fuel-efficient aircraft will enable Volaris to take advantage of market opportunities in the second half of the year and will further increase the percentage of A320neo family aircraft in its fleet. All this aligned to the Company’s sustainability strategy to ensure industry and business viability in the future.

Top Copyright Photo: Volaris Airbus A320-271N WL N530VL (msn 7553) (WW84) LAX (Michael B. Ing). Image: 952586.

Volaris aircraft slide show:

 

Swiss to trial IATA Travel Pass app

Swiss International Air Lines Airbus A320-271N WL HB-JDC (msn 10242) ZRH (Rolf Wallner). Image: 952963.

Swiss International Air Lines is to become the first airline in the Lufthansa Group to trial IATA’s new Travel Pass app, which it will do on its Zurich-London Heathrow route from April 22 onwards. The trial marks a major further step in making travel simple and reliable again during the current COVID-19 pandemic. Swiss has also been testing further such concepts since mid-March.

The new IATA Travel Pass app enables travelers to check up on the latest coronavirus-related entry provisions for their country of destination. It also allows them to have their COVID-19 test results sent directly to the app. This is turn enables the traveller to demonstrate to airlines and authorities that they meet the relevant entry requirements, without having to divulge further information about their personal health. The new app should also bring greater speed and efficiency to the corresponding airport procedures.

The new IATA Travel Pass app meets the strictest data protection requirements. All the user’s health details remain on the app: at no point are they transmitted or centrally stored, which assures the user of total control over all their personal data. The IATA Travel Pass has already been accepted as an official health document for entry purposes by the Singapore authorities.

Standardized parameters essential

“We support all endeavors to make travel simple and reliable again during the coronavirus pandemic,” says SWISS CEO Dieter Vranckx. “Digital health documents like the IATA Travel Pass are making an invaluable contribution to reconciling the demand for mobility with the need for health protection, to make it easier for our customers to plan their journeys with confidence and to restore the trust in travel as a whole. We still consider it essential that consistent, unified and mobility-promoting parameters are established and maintained, along with internationally recognized and standardized processes to deliver digital test and vaccination certifications. This is the only way to ensure that Switzerland can retain the international links that are so vital to the country in economic terms.”

Swiss testing further concepts, too

In addition to the IATA Travel Pass, Swiss is also evaluating the use of further digital solutions such as the EU Green Pass and the CommonPass.

Alongside these options, further trials are being conducted – since mid-March on its Newark (USA)-Zurich route and since the beginning of April on flights from Zurich to Spain and Portugal – under which Swiss travelers can upload their COVID test results to the swiss.com website up to 12 hours before starting their trip. These data will then be verified so that the traveller knows before departure whether they meet the official entry requirements of the country they are flying to. The current trials here should be extended to further Swiss routes, too.

The use of the IATA Travel Pass app and these digital document checks is optional. Swiss travelers are informed of all such options that are available to them in good time in advance of their planned travel.

Top Copyright Photo: Swiss International Air Lines Airbus A320-271N WL HB-JDC (msn 10242) ZRH (Rolf Wallner). Image: 952963.

Swiss aircraft slide show:

Volaris helps to promote the new release of Wonder Woman 1984 on HBO MAX

Promoting Wonder Woman 1984 on HBO MAX

Volaris has added promotional decals on this Airbus A320neo for the release of WW84 on HBO MAX.

Video:

Top Copyright Photo: Volaris Airbus A320-271N WL N530VL (msn 7553) LAX (James Helbock). Image: 952372.

Volaris aircraft slide show:

Berlin Brandenburg Airport Willy Brandt starts operations

The new Terminal 1 at Berlin Brandenburg Airport Willy Brandt (BER) was opened on October 31 with the landing of the first two aircraft operated by easyJet and Lufthansa. Upon arrival, the passengers, including easyJet CEO Johan Lundgren and Lufthansa CEO Carsten Spohr, were welcomed in Terminal 1 by the head of the airport company, Engelbert Lütke Daldrup. The symbolic opening act took place in a small circle and was also attended by the Minister-President of the State of Brandenburg, Dietmar Woidke, the Governing Mayor of Berlin, Michael Müller, the Federal Minister of Transport and Digital Infrastructure, Andreas Scheuer MdB, and the Chairman of the Supervisory Board of the airport company, Rainer Bretschneider. The first commercial flights will arrived at Terminal 1 in the evening, while the first easyJet flight to London Gatwick will departed from here in the morning of November 1.

BER boasts excellent transport links. In addition to a dedicated motorway connection, a new six-track railway station under Terminal 1 ensures direct access to rail services. The station had previously already been commissioned on 25 October 2020. It is expected that around two thirds of passengers will reach the airport by train. Numerous bus lines also connect the airport with Berlin and the surrounding area at frequent intervals.

The airport covers a total area of 1,470 hectares, the equivalent of around 2,000 football pitches. Terminals 1 and 2 are located between the two parallel runways, while Terminal 5, the former Schönefeld Airport, is in the northern area. The two runways can be operated independently. In addition to the northern runway, which has been the main runway used so far, flights will also be operated from the southern runway starting from November 4.

The new airport concentrates all air traffic in the German capital region in one location with a total capacity of over 40 million passengers per year. Around 25 million passengers can be handled at Terminal 1. This means that sufficient capacity is available at Germany’s third largest airport location. More passengers are expected to board and disembark at BER than at any other location in Germany. This modern infrastructure will allow for a significant increase in long-haul services and connecting traffic in the future.

"Hauptstadtflieger" ("Capital City Plane") for the first LH flight to new Berlin Airport (BER) from MUC

Above Copyright Photo: Lufthansa Airbus A320-271N WL D-AINZ (msn 9442) (Hauptstadtflieger – BER) MUC (Arnd Wolf). Image: 951788.

 

Swiss International Air Lines takes delivery of its first Airbus A320neo

"Engelberg", 1st A320neo, delivered on February 20, 2020

Swiss International Air Lines (Swiss) has taken delivery of its first Airbus A320neo aircraft (HB-JDA) at a delivery ceremony in Hamburg, Germany. It is the first of 25 A320neo Family aircraft ordered by Swiss International Air Lines.

Photo: Airbus.

The A320neo Family incorporates the very latest technologies including new-generation engines, Sharklets and cabin efficiency enablers, which together deliver 20% fuel savings. With more than 7,300 orders received from over 110 customers since its launch in 2010, the A320neo Family has captured some 60% share of the market.

Top Copyright Photo: Swiss International Air Lines Airbus A320-271N WL HB-JDA (msn 9246) ZRH (Rolf Wallner). Image: 949161.

Swiss aircraft slide show: