Tag Archives: AMS

No labor peace at Austrian Airlines-Tyrolean Airways and also no contract and no merger due to tense labor negotiations

Austrian Airlines (Vienna) and Tyrolean Airways (Innsbruck and Vienna) have met with stiff resistance and a possible strike from its unions on its recent proposals for a new contract and hopefully some labor peace. As a result, Tyrolean Airways has now withdrawn its offer for a new contract as previously reported. In addition, Tyrolean Airways will not be merged into Austrian Airlines. Lower cost Tyrolean Airways currently operates all aircraft (except one Boeing 777-200) for Austrian Airlines under the Austrian brand. The company has also decided not to pursue a replacement program for the Fokker jet aircraft due to this uncertain labor environment. The group issued this statement:

• Threat of industrial action or even a strike met with incomprehension
• Works Council considers the old collective wage agreement to be the basis for negotiations
• “Old collective wage agreement would lead into an economic dead end”

After ten months of negotiations the management of Tyrolean Airways has withdrawn its offer for a new Group collective wage agreement. Last Monday the Works Council responded to the presented offer by holding a general staff meeting and threatening industrial actions or even a strike – a total of 34 flights had to be cancelled, and almost 3,000 passengers were affected by the disruption of normal flight operations.

Moreover, at the first round of negotiations following the announcement of the offer, Karl Minhard, Chairman of the Works Council for the flight and cabin crew, declared that from his point of view the basis for negotiations is still the original collective wage agreement applying to the former flight staff of Austrian Airlines. In January, both parties had still defined the goal of reaching an agreement by May 31, 2014.

“We would not manage to achieve this under the prevailing circumstances, neither with respect to the timing or the contents”, says Klaus Froese, Managing Director of Tyrolean Airways. “The past cannot be the answer to an economically challenging future. The old collective wage agreement would lead us straight into an economic dead end”, he adds. As a reminder: for six consecutive years Austrian Airlines operated in the red. As of 2013 the company was again in the black, as a result of strict cost management and after the termination of the old collective wage agreement.

After consulting with the Executive Board of Austrian Airlines, the management of Tyrolean Airways decided to take the proposed solution off the agenda. “We have to remain punctual and reliable, especially when people are planning their summer vacations. Flight disruptions and cancellations are not acceptable for our customers”, Froese adds.

Thereby, for the time being, also the offer of merging Tyrolean Airways and Austrian Airlines is no longer under discussion. The management of Austrian Airlines does not believe it is an opportune time to make the potential investments of up to EUR 1 billion to replace the Fokker aircraft and expand long haul routes. This is because the former collective wage agreement does not provide a sound basis for such investments.

“We will now deliberate which options we have. Naturally my door remains open for serious negotiations about an economically viable Austrian Airlines”, Froese emphasizes.

The management remains confident with respect to the lawsuits filed by the trade union and the Works Council. The transfer of flight operations to Tyrolean was economically essential and also legally permissible.

Copyright Photo: TMK Photography/AirlinersGallery.com. The Fokker 70s and 100s operated by Tyrolean Airways are not likely to replaced any time soon with this uncertainty. Fokker F.28 Mk. 0100 (Fokker 100) OE-LVC (msn 11446) arrives in Amsterdam.

Austrian Airlines:

Ruili Airlines launches flight operations in Yunnan, China

Ruili Airlines (Kunming, Yunnan) formally started passenger operations on May 18 between its Kunming (KMG) base in southern China and Mangshi (LUX).

As previously reported, Ruili Airlines is owned by the Yunnan Jingcheng Group. In August 2013 the new airline ordered 18 Boeing 737 aircraft. Three aircraft, two Boeing 737-700s and the pictured 737-800 were delivered in order to commence operations.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Ex-Airberlin Boeing 737-86J D-ABMX (msn 37786) became B-1960 when it was delivered to Ruili Airlines on April 16, 2014.

AirBridgeCargo Airlines is coming to Munich on May 9

AirBridgeCargo Airlines-ABC (Moscow-Sheremetyevo), the largest Russian scheduled cargo airline and part of Volga Dnepr Group, is further expanding its services in Central Europe by introducing direct services to/from Munich with a Boeing 747 freighter on May 9.

The new Munich flight to Moscow’s Sheremetyevo Airport will be in addition to the existing 4 weekly Boeing 737 flights operated by Atran Cargo Airlines, also part of Volga Dnepr Group. ABC Boeing 747 all-cargo flight between the Bavarian capital and ABC hub in Moscow (Sheremetyevo) will be on Friday midday, providing ideal end of the week departure time for European customers.

Germany has always been one of the most important markets contributing to ABC’s growth over the last decade. Earlier this year ABC launched scheduled Boeing 747 services to and from Leipzig, extending the Group’s strong association with the airport, where it has invested in a modern aircraft maintenance and repair facility to serve a variety of aircraft types (Boeing 747-200/300/400/8 (CF-50/80, PW4000), Boeing 737CL).

AirBridgeCargo’s scheduled network covers major markets in Asia (China, Japan and Korea), Europe (the Netherlands, France, Germany, Italy, Spain and Sweden) and North America (Chicago, Dallas).

The airline’s fleet is one of the youngest in the industry and includes 12 Boeing 747s: four Boeing 747-400ERFs, three Boeing 747-400Fs and five brand new Boeing 747-8Fs. The average fleet age is about 4 years.

Copyright Photo: Arnd Wolf/AirlinersGallery.com. Boeing 747-8HVF VQ-BLR (msn 37668) taxies at Amsterdam’s Schiphol Airport (AMS).

AirBridgeCargo Aircraft Slide Show: CLICK HERE

Routes to Europe:

Cargolux improves with a net profit of $8.4 million in 2013

Cargolux Airlines International (Luxembourg) at its annual general meeting, the shareholders of Cargolux Airlines International S.A. approved the audited financial statements for the financial year ended on December 31, 2013.

2013 Highlights

Cargolux earned a full year net profit of US$ 8.4 million compared to US$ 35.1 million net loss in 2012;

Total revenues rose 14.4% to US$ 1,988.5 million from US$ 1,738.9 million in 2012.
Key Performance Indicators:

Tons sold increased 16.7% to 753,848 from 645,759 in 2012;

Average load factor softened 0.9 percentage points to 67.7%;

FTK strengthened to 5.7 million compared to 4.8 million in 2012;

Daily aircraft utilization stood at 14:57 block hours versus 15:07 in 2012.

In spite of a moderate recovery in the last quarter, the airfreight industry continued to operate in a difficult environment for the most part of 2013. Capacity growth still outstripped demand, which resulted in an industry-wide decline in yields and load factors. Despite difficult trading conditions, Cargolux grew its activities and increased volumes in a bid to maximize contribution to fixed costs. This was achieved quite successfully, as the company recorded a tonnage growth of 16.7% over 2012 to 753,848 tons – exceeding the 2013 budget by 13.5%. Total revenues grew by 14.4% to $1,988.5 million (US) while tons-kilometers flown increased from 4.8 million in 2012 to 5.7 million in 2013.

Cargolux operated 95,022 block hours, 13,364 hours more than planned for 2013. The high amount of operational activity contributed towards achieving a net consolidated gain of $8.4 million (US), a noteworthy improvement over the originally budgeted loss for 2013 of $27.1 million (US).

Cargolux expanded its fleet with three new Boeing 747-8Fs and retained, on a power-by-the-hour basis, a Boeing 747-400F that was initially planned to exit the fleet during 2013. It also added a Boeing 747-400ERF on the same basis, which brought the fleet to 20 aircraft at the end of the year. In contrast, the budget for 2013 foresaw a fleet of 16 aircraft only.

With a bigger fleet and more operational activity than planned, Cargolux recorded an average daily aircraft utilization of 14:57 hours. The company’s market share reached 3.5% and it ranked at number 8 among the world’s dedicated freighter and combination carriers in terms of FTKs.

“We don’t expect market conditions to improve significantly in 2014,” said Cargolux President and CEO Dirk Reich. “Our priority is to grow and expand our global network with the continued support and valuable contribution of our hard working employees while focusing on efficiency and performance improvements. I am also confident in our ability to reap the first tangible rewards from the cooperation with our new shareholder HNCA”, Reich added.

Copyright Photo: Karl Cornil/AirlinersGallery.com. Boeing 747-8R7F LX-VCG (msn 35812) taxies past the camera at Amsterdam.

Cargolux Aircraft Slide Show: CLICK HERE

Centurion Cargo to retire its McDonnell Douglas MD-11F freighter fleet

Centurion Cargo (Miami) and Sky Lease Cargo (Miami) (both owned by Alfonso Conrado Rey) will retire its nine McDonnell Douglas MD-11F freighters over the next two to three years according to a report by Cargo Facts. The two carriers are adding larger Boeing 747-400F freighters.

Read the full report: CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. Centurion Cargo’s McDonnell Douglas MD-11F N985AR (msn 48430) taxies at a snowy Amsterdam, its European terminus.

Centurion Cargo:

Sky Lease Cargo:

Centurion Cargo Route Map:

SAS to connect the oil region of Norway with Houston, Texas

Scandinavian Airlines-SAS (Stockholm) is launching services between Stavanger, Norway and Houston (Bush Intercontinental) on August 20. This fulfils the wishes of leading players in the oil industry for better connections between Norway, and the rest of Scandinavia, and Houston, Texas.

The route will be operated by a business version of the Boeing 737-700 and will have an SAS Long Haul Business Class concept on board, with just 44 comfortable business seats, along with a modern inflight entertainment system and full-service meals and service.

SAS has entered into a wet lease agreement with PrivatAir (Geneva) , which has this special version of the Boeing 737-700. The aircraft will carry SAS’s distinctive colors and logo.

The route will launch on August 20, just ahead of the major oil exhibition in Stavanger, Offshore Northern Seas (ONS). Tickets for route, which will operate daily except Saturdays, go on sale on April 29.

Read the article by Bloomberg Businessweek: CLICK HERE

Top Copyright Photo: Ariel Shocron/AirlinersGallery.com. SAS’ Boeing 737-783 LN-RRB (msn 32276) approaches the runway at Madrid (Barajas).

Scandinavian Airlines-SAS:

PrivatAir:

Bottom Copyright Photo: Keith Burton/AirlinersGallery.com. PrivatAir’s Boeing 737-7AK HB-JJA (34303) arrives in Amsterdam.

Pegasus Airlines to introduce Istanbul-Hamburg service on July 1

Pegasus Airlines (flypgs.com) (Istanbul) will be introducing Istanbul (Sabiha Gokcen)-Hamburg service, four days a week on July 1 per Airline Route.

On the financial side, the Turkish issued this report:

Pegasus Airlines has disclosed its financial results for the year 2013. Continuing its double-digit growth in 2013, Pegasus increased sales revenue by 25 percent from the previous year to 2.4 billion Turkish Lira and its gross profit by 41 percent from the previous year to 450,515,424 Turkish Lira ($202 million).

In 2013 Pegasus launched 13 new destinations; and flew 16.8 million guests

Continuing its dynamic and prolific growth in 2013, Pegasus’ operating profit increased by 28 per cent to reach 258 million Turkish Lira. Having carried 16.8 million guests in 2013, Pegasus’ Operational EBITDAR reached 533.5 million Turkish Lira while its EBITDAR margin increased by 22.3 per cent.

Extending its flight network with 13 new destinations in 2013, Pegasus increased its domestic market share from 25.7 per cent to 26.9 per cent and its international market share from 8.1 percent to 9 percent. On domestic flights 27 out of every 100 passengers flew with Pegasus.

Pegasus’ blended load factor reached 80.2 per cent and average guest numbers per cycle reached 149.

Having launched 13 new destinations in 2013, comprising of 7 Turkish domestic and 6 international routes, Pegasus extended its flight network such that it reached 76 destinations in 30 countries by the end of 2013; translating to 23.3 per cent yearly growth in the number of guests travelling on its domestic Turkish routes and 24.8 per cent yearly growth in the number of international guests. By increasing the average number of its guests on a single flight to 149 in 2013; and by continuing to make effective and efficient use of its fleet, Pegasus has increased its average daily aircraft utilisation to 12.6 block hours

Load factors reached an average of 80.2 per cent in 2013 across all domestic Turkish and international flights. Between 2005 and 2013, Pegasus flew 42.3 million guests, translating to 72 per cent of its total guests, to their destinations for under 100 Turkish Lira and 15.1 million guests, that is, 26 per cent of its total guests, for under 50 Turkish Lira. In 2013, an average of 90.24 per cent of Pegasus’ flights departed on-time, reflecting its uncompromising mission of providing punctual flights for its guests.

Sertaç Haybat, Pegasus Airlines General Manager, announced: “We have continued our sustained growth in 2013, reflecting our position not just as the fastest growing airline in Turkey in recent years, but also in Europe. From 2007 to 2013 Pegasus achieved an average annual growth rate of 27 per cent for domestic flights against a sector average of 16 per cent. In 2013, 27 people out of every 100 in Turkey travelled to their domestic destinations with Pegasus; and in total 16.8 million guests on domestic and international destinations were able to experience the next-generation in travel with us. By providing our guests with the opportunity to design their flights in accordance with their preferences we also provided them with the opportunity of enriching their travel experiences. Meanwhile, our ever-expanding flight network has presented our guests with new destinations to discover and so we have continued to offer them the opportunity to travel at affordable prices. We owe our low fares to our operational productivity and our young fleet. Pegasus is not only one of the most popular airlines in Turkey for its implementation of the low cost model; but also within Europe. Our website, flypgs.com, is now known as the address for affordable flights in both Europe and Turkey. In order to continue the growth we achieved in 2013 into 2014, we will continue to create new opportunities to ‘fly and go’ for our Pegasus guests with our new destinations and increasing flight frequencies.”

Pegasus Airlines:

Ruili Airlines is a new airline in Yunnan Province of China

Ruili Airlines (Kunming, Yunnan, China) is a new airline located in the remote Yunnan province of China. The province is in the southwest portion of China. The airline is named after trading city of Ruili which is on the border with Myanmar.

The new airline is acquiring two Boeing 737-700s (B-5811 and B-5812) and the pictured former Airberlin Boeing 737-800.

According to CAPA, the airline received its Air Operators Certificate (AOC) on January 22, 2014.

Copyright Photo: Ton Jochems/AirlinersGallery.com. The pictured brand new Boeing 737-86J D-ABMX (msn 37786) was handed over to Airberlin on December 19, 2013. D-ABMX was repainted by KLM at Amsterdam’s Schiphol Airport. It is pictured at AMS yesterday (February 3) departing for Berlin and its imminent delivery to China as B-1960.

Carpatair files for insolvency

Carpatair (Timisoara, Romania) filed for the opening of insolvency proceedings on January 20 according to Daily Business.ro. The airline hopes the bankruptcy court-appointed trustees will allow the carrier to continue operations. The carrier reportedly has debts of over £75 million. Carpatair reportedly is unable to pay its creditors including NAFA, BRD, Agroind Bank of Moldova, and Agerpress according to Realitatea.net.

The airline started operations in December 1999.

Read the full account (in Romanian): CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. The pictured Fokker 70 (F.28 Mk. 0070) YR-KMA (msn 11564) has since gone on to Alliance Airlines as VH-QQR.

Carpatair:

Route Map: The company just added a new route to London (Stansted) on December 19, 2013.

British Airways to return three GSS Boeing 747-8 freighters to Atlas Air Worldwide Holdings in April

Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York) has announced it intends to pursue new ACMI (aircraft, crew, maintenance and insurance) placement opportunities for three 747-8 Freighter aircraft currently operated for British Airways plc by Atlas Air Worldwide’s 49%-owned UK subsidiary, Global Supply Systems Limited (GSS).

The action follows notice from British Airways, a unit of International Consolidated Airlines Group, S.A., regarding British Airways’ strategic decision to exit dedicated cargo-freighter service and to return the aircraft to GSS in April 2014 pursuant to the terms of the existing ACMI agreement between the parties.

Effective with the termination of the agreement, the three 747-8Fs will be redelivered to the company by GSS. Through GSS, the company also will receive contractual early termination fees from British Airways.

Meanwhile Qatar Airways (Doha) will operate five Boeing 777F freighter flights between Hong Kong and London for IAG Cargo (British Airways) starting on May 1. IAG Cargo issued this statement:

IAG Cargo has announced it has signed a long-term commercial agreement with Qatar Airways to purchase capacity on Qatar Airways-operated air cargo freighters, effective from May 1, 2014.

Qatar Airways will operate five Boeing 777F flights a week between Hong Kong and London on behalf of IAG Cargo, providing continuity of service for IAG Cargo customers.

The agreement marks a transition for IAG Cargo and follows the company’s decision to transfer freighter operations from its current provider, Global Supply Systems.

IAG Cargo connects 350 destinations worldwide, serving the world’s economic hubs with cargo-friendly wide-bodied planes. Through its Constant Climate network, it has one of the largest networks globally for handling temperature-sensitive air cargo.

Qatar Airways is already a partner with IAG through the oneworld global alliance which it joined in October 2013. The airline is taking delivery of a further three Boeing 777F aircraft during 2014.

Top Copyright Photo: Rainer Bexten/AirlinersGallery.com. This decision will end British Airways World Cargo and Global Supply Systems. GSS operated Boeing 747-87UF G-GSSD (msn 37562) in British Airways World Cargo colors departs graceful from Cologne/Bonn.

British Airways World Cargo (GSS):

Qatar Airways:

Video: Flying the Boeing 747-800F freighter: