Air Lease Corporation (ALC) (Los Angeles) today at the 51st International Paris Air Show announced a firm order for additional Airbus widebody and single-aisle aircraft (1 A350-900, 1 A321ceo and 3 A320ceo).
Including todayโs announcement, ALCโs fast growing portfolio of Airbus aircraft stands at a total of 262, of which 66 are widebodies (15 A330ceo, 25 A330neo, 21 A350-900, 5 A350-1000) and 196 are single-aisles (30 A320ceo, 31 A320neo, 26 A321ceo, 109 A321neo).
Monarch Airlines (London-Luton) reported a loss of ยฃ69.9 million ($106.7 million) for the six months ending on April 30. This is an improvement of a loss of ยฃ110.6 million ($168.8 million) for the same half year period in 2014.
The airline issued this financial statement:
Monarch, the European leisure airline group, has reported a half year loss of ยฃ69.9 million, down from ยฃ110.6 million for the same period last year. Winter losses, for the November to April period, were down by a bigger than forecast ยฃ40 million.
Monarch has completed the final phase of the restructuring program begun last year and has created a revitalized, entirely scheduled network of destinations for discerning leisure customers. The Monarch turnaround is firmly on track.
Monarch has undertaken a range of measures to remove ยฃ200 million in annual costs from the business, including restructuring of its network and fleet, improved revenue management and modernised working practices. ยฃ30 million of the reduction in winter losses is due to the success of this self-help turn around program, with the remaining ยฃ10 million due to additional savings in fuel costs.
Overall, this has resulted in a strong first half performance. The group is now focused on building on the heritage of the Monarch brand and creating a truly customer centric organisation.
Chief Executive Officer, Andrew Swaffield said; โWe remain positive that the changes we have made to the structure of the group, the network and our cost base have set us in good stead to achieve the turnaround. It is thanks to the hard work of all 2,800 colleagues employed directly by the company, both on the ground and in the air, that we are focused on service and safety whilst maintaining a low cost base. These elements will help Monarch to build a sustainably profitable business.โ
Chief Financial Officer, Barry Nightingale said; โOur winter performance was better than forecasted with substantially reduced losses.
โWe have seen stable booking trends throughout the last 6 months and have seen good summer sales in key months which will help us to deliver against a challenging plan.
โImproved revenue management has played a key part in the turnaround results but, additionally we have put a lot of work into segmenting our customer groups and have been able to take a customer centric approach to reshape our network around increased frequencies to our most popular destinations. We have also added new scheduled routes taken from our portfolio of destinations previously served as charter routes to provide a better service and increased flexibility to customers.โ
Earlier this year, Monarch launched a group wide employee bonus scheme to reward the commitment and hard work of all employees. Key performance indicators are aligned to company performance and the punctuality of the airline.
Andrew Swaffield said; โItโs clear that people who work for Monarch genuinely care about the company and our customers. That is directly reflected in the great service and natural warmth which comes as standard.
โThe bonus scheme is designed to ensure that we focus on the right things such as company performance and airline punctuality (OTP). This year we have already improved, and our average OTP figure for the first six months is 83.2%, compared to 80% for the same period last year.โ
Having recently celebrated 47 years of flying under the Monarch name, work has now begun to transition the airline to its new fleet of Boeing 737 MAX 8 aircraft (below) which will start coming into service in April 2018.
The airline confirmed this order in autumn 2014 to replace its current Airbus fleet by 2020. Each of the thirty new Boeing 737 MAX8 aircraft will deliver further savings on future fuel costs and contribute to the airlineโs sustainable low cost base.
Alongside the scheduled airline operations, Monarchโs in-house engineering division has enjoyed growth in third party business and has opened a new maintenance base in Copenhagen. Monarch Aircraft Engineering was recently shortlisted for Maintenance, Repair & Overhaul company of the Year at this yearsโ industry Awards. The priority for this valuable group asset is to improve its efficiency and make a bigger contribution in the years to come.
Monarchโs tour operating business has seen strong year-on-year growth in on-line bookings, offsetting some category weakness in high street sales. Key markets in the Canaries and mainland Spain have grown in line with the airlineโs scheduled operations to key city destinations. Packages to Egypt are seeing some recovery after an unsteady past two years. Greece continues to perform well, despite economic uncertainty and aggressive competition.
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Monarch will replace its current Airbus fleet with new Boeing 737 MAX aircraft by 2020. Airbus A321-231 G-OZBE (msn 1707) arrives in Las Palmas.
Frontier Airlines (2nd) (Denver) has placed a firm order for 10 Airbus A321 and two A320 aircraft. All 12 aircraft are current engine option (ceo) aircraft. This is the second time in less than a year that the airline has ordered the A321, the largest member of the Airbus A320 Family. Including this order announced today, Frontier has a backlog of 101 Airbus single-aisle aircraft. Their current in-service fleet consists of 55 A320 Family aircraft (34 A319s and 21 A320s).
Each of the newly ordered planes will feature lightweight composite Sharklets, 2.4-meter/94-inch tall wing-tip devices that provide a fuel consumption reduction of up to 4 percent, plus either a range extension of 100 nautical miles or increased payload of up to 450 kilograms/992 pounds.
Frontier took delivery of its first Airbus aircraft in 2001 and has since transformed into an all-Airbus, all-A320 Family fleet.
Airbus (Toulouse) issued this statement and photo:
Airbus A320 family aircraft production in the U.S. is on schedule to begin this summer as the large aircraft components for the first U.S.-produced aircraft today depart from the port in Hamburg, Germany, bound for Mobile, Alabama. The major component assemblies (MCAs) consist of the wings produced in the UK, the rear fuselage section produced in Germany including the tail cone (produced in Spain), and the forward fuselage section, including the cockpit produced in France, all of which contain parts from all over the world. The horizontal (from Spain) and vertical (from Germany) stabilisers are also on board. The first aircraft is an A321ceo destined for delivery to JetBlue in 2016.
Airbus established the Airbus U.S. Manufacturing Facility in Mobile to assemble and deliver A319, A320 and A321 aircraft to meet the growing needs of its customers in the United States and elsewhere. It is the companyโs first U.S.-based production facility, and the fourth in the network which includes Toulouse, France; Hamburg, Germany; and Tianjin, China.
Approximately 200 employees, including some from Mobile who are training in Hamburg, celebrated this first shipment in a ceremony held today to launch the cargo ship, in the presence of the U.S. Consul General in Hamburg, Nancy Corbett. Traditional songs from all four European Airbus nations and the U.S. were played as the ship, bearing German and U.S. flags, and flags of the city state of Hamburg and the state of Alabama, sailed off.
Alitalia (Societa Aerea Italiana) (3rd) (Rome) has a new growing relationship with partner Etihad Airways (Abu Dhabi). This expanding partnership with the Gulf carrier has made the older Air France-KLM (Air France and KLM Royal Dutch Airlines) (Paris and Amsterdam) relationship less important. As a result, Alitalia has decided to withdraw from the Air France-KLM partnership at the end of 2016. Will it also leave SkyTeam? The Italian airline issued this statement:
Alitalia SAI has announced that it will not renew its partnership agreement and ancillary joint ventures agreements with Air France-KLM when they come up for renewal in 2017.
The agreements govern passenger services operated by the three carriers between Italy and France (and beyond), and between Italy and the Netherlands (and beyond), as well as the marketing, sales and distribution of Alitalia Cargo belly services undertaken by Air France-KLM.
The original agreements were concluded with Alitalia CAI (Compagnie Aerea Italiana) in 2009 and 2010 under very different economic circumstances, and were subsequently transferred to Alitalia SAI in January 2015.
Silvano Cassano, CEO of Alitalia, said: โThese agreements are no longer beneficial, either commercially or strategically, to the new Alitalia and its ambitious turnaround plan. They were negotiated when Alitalia was in a very different position, with the result that the agreements in their current forms favor the other party.
โThey are undermining our ability to restructure our network and the airline effectively to achieve the long term sustainability of our business.
โThe new Alitalia is in a new position. Our business needs agreements which deliver equitable value to each party.
โFor Italy and for Alitalia, our first priority is to win back the inbound tourism market, while better serving Italian leisure and business travellers.
โIn our plans we also want to deliver up-to-date cargo solutions to the Italian manufacturing industry, the second largest in Europe, which has growing needs to export goods worldwide.
โWe have indicated to Air France-KLM that we are willing to discuss more equitable arrangements that benefit all the parties involved, but thus far we have been unable to achieve this result.
โWe remain open to further discussions to achieve a mutually acceptable solution. However in the interest of transparency and certainty for all parties, we felt it necessary to announce our intention not to renew these agreements under the present conditions.โ
Alitalia (1st, 2nd and 3rd) aircraft slide show:
Copyright Photo below: AirlinersGallery.com. Airbus A321-112 EI-IXJ (msn 959) taxies at London (Heathrow).
Volaris (Mexico City) will introduce the new Airbus A321-200 initially on the Mexico City – Cancun route on June 1. This will be followed by the Mexico City – Moneterrey route on August 17 per Airline Route.
Copyright Photo below: Gerd Beilfuss/AirlinersGallery.com. Airbus A321-231 D-AZAN (msn 6558) became XA-VLH when it was handed over on April 20. A second A321 will follow.
Finnair (Helsinki) is strengthening its ties with fellow oneworld alliance members JAL-Japan Airlines (Tokyo) and QANTAS Airways (Sydney), with new codeshares on the airlinesโ respective services to Busan, South Korea and Perth, Australia.
Busan is a new addition to Finnairโs extended network, which Finnair passengers can now reach daily via Tokyo Narita on services operated by Japan Airlines. The new codeshare allows Finnair to serve South Koreaโs prosperous second-largest city, with a population of 3.6 million that is growing in economic clout and seeking more connections to Europe.
Japan Airlines and Finnair already codeshare extensively on each otherโs services throughout Europe and Japan.
Additionally, from June 26, 2015 Finnair passengers can connect to Perth via Singapore on services operated by oneworld partner QANTAS Airways. This creates additional scheduling and route options for Finnair passengers, who can also connect to Perth via Hong Kong on oneworld partner Cathay Pacific Airways (Hong Kong).
In other news,ย Finnair, the first European airline to operate the Airbus A350-900 aircraft (above), has awarded Lufthansa Technik a 12-year agreement for component support for the new aircraft type. Lufthansa Technik is one of the leading providers of technical services for the aviation industry, and the agreement with Finnair is the company’s first contract for A350 XWB component support.
The exclusive Total Component Support TCSยฎcontract covers the availability and repair services of A350-900 XWB components. Finnair already has an agreement with Lufthansa Technik on engine-related components service for V2500 engines and APU services for APS3200.
Finnair’s own maintenance organization at the Helsinki Airport is responsible for the line maintenance of Finnair’s current fleet and the new A350-900 XWB fleet.
Finnair has firm orders for 19 A350-900 XWB aircraft, the first four of which are expected to arrive in the fleet in the second half of this year, with another seven in 2016 and 2017. The complete order will be fulfilled by 2023.
Copyright Photo below: Paul Bannwarth/AirlinersGallery.com. Airbus A321-231 OH-LZH (msn 5803) with Sharklets approaches the runway for landing at Las Palmas.
Airberlin Group (Airberlin and Niki) (Berlin) reported its first quarter net loss narrowly widened toย โฌ210.1 million ($237.6 million), up slightly fromย โฌ209.8 million $237.2 million) in the same quarter a year ago.ย 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 airberlinโs 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:
โWe 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.โ
Partnerships further strengthened, restructuring measures prove effective
Stefan Pichler emphasizes the importance of airberlinโs strengthened partnerships, in particular with Etihad Airways: โDuring 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.โ
As well within oneworldยฎ 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 โ 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: โThe 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.โ
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin’s Airbus A321-211 D-ALSB (msn 1994) lands at Tenerife Sur.
Qatar Airways (Doha), as the global launch customer for the Airbus A350-900 XWB, became the first airline to operate the worldโs newest aircraft to Singapore and the Asia Pacific region today (May 11), with the inaugural A350-900 XWB service arriving in Singapore’s Changi Airport.
Upon touching down at Singapore Changi Airport, flight QR 944 was greeted by a traditional water cannon salute (above), a long-held tradition to welcome special flights or planes to an airport, and an exclusive welcome ceremony.
Qatar Airwaysย currently operates a double-daily service to Singapore with the Boeing 787 Dreamliner (below) and the aircraft will be progressively replaced by the next-generation A350-900 XWB.
Photo Above: Qatar Airways. Boeing 787-8 Dreamliner A7-BCB (msn 38320).
In addition, from later this summer, Qatar Airways will add an additional daily flight to Singapore, as part of its global expansion drive and to cater to the increase in passenger demand. All three daily flights will be operated using the A350-900 XWB by mid-August.
In addition,ย Qatar Airways has announced an expansion to its UAE services with the launch of nonstop flights to Ras Al Khaimah, commencing on October 1, 2015.
Operating daily, flight QR 1120 will depart Dohaโs Hamad International Airport at 20:15 hours and arrive at Ras Al Khaimah International Airport at 22.30 hours. The return flight QR 1121 will depart at 23:30 hours and arrive in Doha at 23:45 hours.
Additionally the carrier announced the introduction of Qatar Airwaysโ newest offering, the Doha-Dubai Shuttle. Having launched this week, the Doha-Dubai Shuttle will offer flights from Dohaโs Hamad International Airport to Dubai International Airport, as well as Al Maktoum International Airport in Dubai.
The new service which is the first of its kind flying between the two cities brings with it a number of enhanced services that will reduce overall travel time and increase convenience for passengers. The shuttle service, along with its many perks, will be offered on each of the 18 daily flights between the two cities, with 14 flights to and from Dubai International Airport and four to and from Al Maktoum International Airport.
Copyright Photo Above: Bruce Drum/AirlinersGallery.com. Airbus A321-231 A7-ADX (msn 3397) departs from tropical Doha, Qatar.
According to the airline, “passengers on the Doha-Dubai Shuttle will also be able to enjoy the newly unveiled Qatar Airways inflight entertainment system with its brand new design and identity. The new brand โOryx One – Explore. Play. Share.โ embraces Qatar Airwaysโ corporate colours and will provide passengers with a comprehensive experience of entertainment, information and connectivity.
Video: Qatar Airways. The new Oryx One on Qatar Airways.
Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker (below) announced the launch of the Doha-Dubai Shuttle and the unveiled new brand identity of the airlineโs inflight entertainment during a press conference on the opening day of Arabian Travel Market (ATM) โ the Middle Eastโs premier travel show โ taking place in Dubai this week.
Photo Above: Qatar Airways.ย Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker announces the carrier’s 2015 expansion plans and latest undertakings during a press conference at the Arabian Travel Market in Dubai.
Specially branded and dedicated check-in counters located at Row 5 at Hamad International Airport will be available for all passengers travelling from Doha to Dubai on the Doha-Dubai Shuttle. Passengers who plan on checking in baggage must check in no later than one hour before their scheduled departure time. Return flights from Dubai to Doha also require check in of a minimum of one hour before the scheduled departure time for all passengers, including those with only hand baggage.
Passengers flying on the Qatar Airways Doha-Dubai Shuttle will also be able to take advantage of fast-track immigration in Doha, allowing them to clear passport control in a minimum amount of time before proceeding to their boarding gates located in either Concourse A or B, which are no more than a seven to 10 minute walk, on average, from passport control.
Qatar Airways has so far announced an the addition of seven destinations to its international map this year โ Amsterdam, Ras Al Khaimah, Zanzibar, Faisalabad, Sialkot, Multan and Durban โ and is gearing up for more route expansion in 2016 with three new US cities, Los Angeles, Boston and Atlanta.
Finally,ย Qatar Airways and Royal Air Maroc (Casablanca) have announced the launch of a strategic joint business agreement on their services between the State of Qatar and the Kingdom of Morocco.
Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker and Royal Air Maroc Chairman and CEO, Mr. Driss Benhima signed the joint business agreement today at the Arabian Travel Market in Dubai, in the presence of international press and travel trade partners.
The joint business will benefit passengers by providing enhanced links between Qatar and Morocco, greater choice of flights to more destinations and improved frequent flyer benefits. With this new agreement, passengers will be able to purchase a single itinerary combining flights on both carriersโ global networks, affording them the ease of one-stop ticketing and baggage check-in.
Royal Air Maroc will be operating three weekly flights with a Boeing 787 Dreamliner to Doha complimenting Qatar Airwaysโ existing seven times weekly flights to Casablanca, giving passengers the flexibility of using a combination of flights from both airlines between Qatar and Morocco, significantly increasing their options.
Video Below: Qatar Airways.ย Qatar Airways First Officer Robby and his wife talk about the wonderful life they have made for themselves in Doha since he joined the airline. Find out how they have rapidly adapted to the Middle Eastern way of life and why they plan to spend the foreseeable future in this fast-growing, dynamic city, which has so much to offer pilots and their families looking for an exciting new chapter in their lives.
Qatar Airways aircraft slide show:ย
Copyright Photo below: Bernhard Ross/AirlinersGallery.com. Airbus A350-941 A7-ALA (msn 006) pis pictured at Frankfurt.
Wow Air (Keflavik) as planned, started its low-fare service from Baltimore-Washington International Thurgood Marshall Airport (BWI) to Keflavik (KEF) (near Reykjavik) yesterday (May 8). Initially the new route will operate four days a week with the new Airbus A321s. On June 11 this will expand to five days a week. The carrier also started service to Boston on March 27.
All Copyright Photos: Tony Storck/AirlinersGallery.com. The inaugural flight was assigned to “MOM”. Airbus A321-211 TF-MOM (msn 6210) was treated to the traditional water cannon salute on the inaugural flight arrival at BWI.
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