Tag Archives: ATL

ExpressJet expands its relationship with United and American, drops Delta

ExpressJet Airlines, a wholly-owned subsidiary of SkyWest, Inc. has announced the initiation of a clearly defined long-term strategy:

 Long-term agreement secured with United Airlines. As part of this plan, ExpressJet has secured a new, five-year extension of its United Airlines ERJ 145 contract, effective January 1, 2018 through Dec. 31, 2022. The new agreement enhances ExpressJet’s United partnership and provides long-term stability to its model. It also provides ExpressJet pilots with continued access to United’s Career Pathway Program. Financial terms of the agreement were not disclosed.
 Early termination of Delta CPA. Additionally, ExpressJet and Delta Air Lines mutually agreed to initiate the wind-down of its remaining dual-class flying agreement under the Delta Connection brand, allowing ExpressJet opportunities to place aircraft with other partners. The agreement, which includes 28 CRJ900s and 33 CRJ700s, was previously scheduled to expire beginning in 2019. The aircraft financed by Delta, including all CRJ900s, will be returned to Delta beginning in fourth quarter 2017; ExpressJet expects to transition other aircraft previously operated under its Delta agreement to other major partners throughout 2018.
 Agreement with American for eight additional CRJ700s. As part of this realignment, ExpressJet has secured an agreement with American Airlines to transition eight additional CRJ700s to its American Eagle operation. That transition is expected to take place during second quarter 2018.

Copyright Photo: Delta Connection-ExpressJet Airlines Bombardier CRJ900 (CL-600-2D24) N307PQ (msn 15307) ATL (Jay Selman). Image: 403371.

SkyWest’s ExpressJet to retire its CRJ200 fleet over the next year

SkyWest, Inc. has announced additional fleet transitions and contract updates designed to reduce SkyWest’s long-term fleet risk and enhance its ability to respond to changing partner needs.

Specifically, SkyWest’s ExpressJet operation expects to transition to flying primarily dual-class aircraft in its CRJ operation by removing its Bombardier CRJ200 aircraft from service over the next year.

The removal of the CRJ200 aircraft reduces ExpressJet’s future required investment in its 50-seat fleet and is expected to improve the airline’s operating efficiency by eliminating an aircraft type from its platform.

SkyWest also announced ExpressJet and American Airlines have agreed to place 12 dual-class CRJ700s into service under a multi-year term. These CRJ700s had been scheduled to be removed from service under a previously-disclosed early lease return arrangement.

Additionally, SkyWest and Bombardier entered into a termination agreement covering Bombardier’s residual value guarantee (“RVG”) agreements on 76 CRJ200 aircraft owned by SkyWest Airlines and ExpressJet. Bombardier agreed to pay SkyWest $90 million by January 2017 along with certain other consideration in exchange for the release. Both the required sale of each aircraft and the cost to SkyWest of returning the aircraft to mid-time condition were points of risk and uncertainty for SkyWest that this termination agreement eliminates.

As a result of the expectation to remove ExpressJet CRJ200s from service and the Bombardier RVG termination agreement, SkyWest is evaluating its total 50-seat CRJ200 fleet and related long-lived assets for impairment in Q4 2016. SkyWest currently anticipates it will record a non-cash impairment charge in Q4 2016 estimated to be in the range of $440 million to $490 million (pre-tax) on its CRJ200 aircraft and other 50-seat aircraft assets, net of the $90 million in cash proceeds from the Bombardier termination agreement.

Copyright Photo: Delta Connection-ExpressJet Airlines Bombardier CRJ200 (CL-600-2B19) N923EV (msn 7826) ATL (Jay Selman). Image: 403333.

Slide Show:

Airliners International ATL June 17 – 20, 2015

Frontier Airlines to announce additional nonstop routes from Atlanta

Frontier Airlines (2nd) (Denver) is expected today to announce six additional destinations from Atlanta according to a report by the Atlanta Business Chronicle. A press conference has been scheduled for today in Atlanta. Frontier aims to be the third largest carrier in ATL by this summer behind Delta and Southwest. With the loss of AirTran Airways there is a void in the large hub for an ultra low fare carrier service. Spirit Airlines is also building up its presence in ATL.

As we previously reported, on March 6 Frontier added new service from ATL to Austin, Indianapolis and Miami.

Today (April 30), as planned, the airline is adding new routes from Atlanta to Los Angeles, Minneapolis/St. Paul, New Orleans and New York (LaGuardia).

More details will follow.

Read the full report: CLICK HERE

Also read Assistant Editor Aaron Newman’s Planely Speaking: The Battle for the Big Peach: CLICK HERE

Copyright Photo: James Helbock/AirlinersGallery.com. Ex-USA 3000 Airlines Airbus A320-214 N263AV (msn 1860) with Jack, the Rabbit, on the tail arrives in Las Vegas. The airliner has now become N219FR.

Frontier Airlines aircraft slide show:

Video: New Frontier Slimline Seats:

The expanding Frontier Airlines route map. Frontier is now flying more in the East rather than the traditional West making its name somewhat obsolete as it downsizes its fading Denver hub.

Planely Speaking: The Battle for the Big Peach

Assistant Editor Aaron Newman

The Battle for the Big Peach

By Aaron Newman.

The world’s busiest airport will become the latest low-cost battleground this spring and summer as Spirit Airlines and Frontier Airlines deem Atlanta as their newest expansion target. By September 2015, Spirit will provide service to 15 cities from Atlanta; while Frontier will expand to 16 cities by the end of this month. With competition from Southwest and of course the hometown favorite, Delta Airlines; does Spirit and Frontier stand a chance at success in the big peach?

Frontier Airlines and Spirit Airlines routes from Atlanta

In the case of Frontier, Delta serves all of the above markets, and Southwest will compete on seven of the markets. In the case of Spirit, Delta operates service to all of the above markets except Atlantic City; while Southwest again competes on seven of the above routes.

It’s likely this aggressive growth stems from the purchase of AirTran Airways by Southwest; AirTran’s disappearance from ATL left a void for a true low-cost carrier in Atlanta. Frontier and Spirit perceive Atlanta as an opportunity to use their low-cost model to attract cost conscious north Georgia residents to travel where they otherwise wouldn’t.

Data from the US Department of Transportation demonstrates that during the 3rd quarter of 2014, Atlanta’s average domestic fare was $439, while, the average US domestic fare was $397–Spirit and Frontier advertise fares starting as low as $19 one-way.

Source: Spirit Airlines.

In a contrast to Cleveland, another market where Frontier and Spirit are doing battle in 2015, Atlanta is not an airport where any major airline has made a substantial cutback. Southwest has made some minor changes to its route network post-merger, but nothing like the 60% capacity reduction seen by United Airlines at Cleveland. Frontier and Spirit are aware that they are in for a battle before one airline eventually wins out. Can both of these airlines survive the threat from each other, as well as the size of Delta and the loyal followings of Southwest’s customers?

Source: Frontier Airlines.

Who wins out?

Above Copyright Photo: Tony Storck/AirlinersGallery.com. Spirit Airlines Airbus A319-132 N503NK (msn 2470) prepares to land at its Fort Lauderdale-Hollywood International Airport (FLL) base.

Spirit has been growing quickly and their experience as an established ULCC (ultra-low cost carrier) gives them the upper hand in this turf war with Frontier. Spirit has a slightly lower CASM (cost per available seat mile) than Frontier (marketrealist.com), giving them the ability to offer lower fares while still maintaining profitability. The newly announced routes come at a time in which Spirit is preparing for a wave of aircraft deliveries (15 aircraft in 2015) that will push its fleet to 80 aircraft by the end of 2015–an added incentive to make Atlanta work for their bottom line. Spirit had long considered an Atlanta expansion, calculating that the Southwest Airlines acquisition of AirTran Airways would increase fares. What Spirit may not have expected, however, was that Frontier Airlines would try the same approach at the same time.

Copyright Photo Above: Ken Petersen/AirlinersGallery.com. Frontier Airlines’ Airbus A320-214 N227FR (msn 6184) is pictured at Raleigh/Durham.

Frontier’s route network is accustomed to change and though I believe one ULCC can gain market share in Atlanta, I predict Frontier will eventually leave or drastically reduce service in Atlanta due to disappointing bookings and slim margins caused by over-capacity. Ultimately, consumers will make the decision, regarding which ULCC they prefer, specifically on routes in which the two carriers overlap, such as Atlanta to Chicago (O’Hare) and Las Vegas. But, as mentioned, Spirit is believed to retain a slight cost advantage over Frontier, ultimately giving them the upper hand.

Surviving the big guys

In a recent presentation to investors, Spirit Airlines estimated Delta has an adjusted cost per available seat mile (CASM) 59% higher than Spirit (Atlanta Journal Constitution). Even though Delta has created a new low-fare class with limited perks in an attempt to compete with ULCC’s, Spirit predicts legacy carriers will eventually narrow their focus to high-yield passengers on over-lapping routes. This allows Spirit to concentrate their efforts on their favorite audience—the leisure traveler. Additionally, Spirit has historically coexisted well in other fortress hubs, like; Detroit, Minneapolis, Houston (IAH), and Dallas (DFW), proving they can effectively compete with larger, legacy carriers.

I conclude that Spirit and Frontier are not entering Atlanta to gain market share from Delta, but rather Southwest. Delta’s numerous frequencies, extensive network, and corporate contracts are no match for Frontier and Spirit. The two ULCC’s believe they can use their ultra-low fares to stimulate cost-sensitive passengers that have otherwise been priced out of air travel. This business model does not directly compete with Delta, but rather Southwest.

The decisions by Spirit and Frontier to grow in Atlanta demonstrate that Southwest is no longer the low fare leader it once was. Their cost structure is higher than that of the ULCC’s competing for lower yield passengers. In a recent interview, Frontier’s president Barry Biffle called Southwest a “mid-cost carrier,” and said that in Atlanta, “fares are relatively high compared to the average,” (Atlanta Journal Constitution) creating an opportunity for a ULCC to come in and thrive.

Spirit Airlines to add nine new cities from Atlanta

Spirit Airlines (Fort Lauderdale/Hollywood) is building up again its presence at Atlanta with nine new routes. The ultra low-fare airline just issued this statement:

Spirit Airlines continues its dramatic growth in 2015. Today the carrier known for its crazy low fares will add additional service to and from nine new cities from Hartsfield-Jackson Atlanta International Airport.

Spirit is thrilled to announce the following new daily, nonstop routes from Atlanta:

Atlanta to Cleveland, Las Vegas, and Orlando beginning May 7, 2015

Atlanta to Baltimore, Philadelphia, and Tampa beginning June 18, 2015

Atlanta to Los Angeles beginning August 20, 2015

Atlanta to Boston and Fort Myers beginning September 10, 2015

With these additional routes, Spirit Airlines will operate nonstop flights from Atlanta to 15 cities. Current routes from Atlanta include: Atlantic City, Chicago, Dallas/Fort Worth, Detroit, Fort Lauderdale/Hollywood, and Houston.

Copyright Photo: Tony Storck/AirlinersGallery.com. Airbus A319-132 N503NK (msn 2470) arrives in Fort Lauderdale/Hollywood.

Spirit Airlines aircraft slide show:

Delta Air Lines to stay at Dallas Love Field for at least another 180 days

Delta Air Lines (Atlanta) has secured another reprieve at Dallas’ Love Field. Delta was due to lose their temporary sublease of a Southwest Airlines gate this week. Southwest needs the gate for expansion at DAL. Instead the carrier has secured a 180-day sublease of an United Airlines gate until early July according to Channel 5 in Dallas.

Delta offers Delta Connection service from Love Field to its Atlanta hub.

Read the full story: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. Bombardier CRJ200 (CL-600-2B19) N922EV (msn 7822) of ASA (now ExpressJet Airlines) arrives at the Atlanta hub.

Delta Connection aircraft slide show:

Delta to add seasonal Honolulu flights from the Minneapolis-St. Paul hub

Delta Air Lines (Atlanta) will launch daily seasonal service from Minneapolis-St. Paul International Airport to Honolulu International Airport next fall.

The flight will operate beginning October 25, 2015 through March 26, 2016 using a 225-seat Boeing 767-300 ER aircraft with 25 full flat-bed seats in BusinessElite, 29 seats in Economy Comfort and 171 Economy class seats.

Delta Air Lines aircraft slide show (current livery):

Delta to remain at Dallas Love Field until (at least) the end of the year

Delta Air Lines (Atlanta) has won a reprieve with the City of Dallas. The airline will be able to retain Delta Connection service to the Atlanta hub from Love Field in Dallas through the end of this year according to the Dallas News.

Last week as we reported, Delta had received notice from the airport that it had to vacate the airport on October 13. The carrier had been subleasing two gates from American Airlines which go to Virgin America on this date.

Delta had been threatening to sue the airport according to the report.

Read the full report: CLICK HERE

Read the analysis by Bloomberg Businessweek: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. The route is operated with Bombardier CRJ200s operated by ExpressJet Airlines (formerly ASA). Bombardier CRJ200 (CL-600-2B19) N848AS (msn 7339) arrives in Atlanta.

Delta Air Lines:

Delta Connection:

Jay Selman’s Inside Look: US Airways operates the last Boeing 737 Classic revenue flight

Guest Editor Jay Selman

An Inside Look: The End of a Classic Era

by Jay Selman

When I was hired by Piedmont Airlines (Winston-Salem) in 1981, the Boeing 737 reigned supreme. We were taking delivery of brand new Boeing 737-200s, and oh how I loved those birds. They were short and fat, and NOISY in an era when noise was still acceptable! In the early days of my airline career, I was on an airplane virtually every weekend. Those were the days when an airline could make money with a 50% load factor, and on those rare occasions when a flight did fill up, there was usually room in the cockpit for a company employee. I’d venture to say that 95% of my flights during the first 10 years of my career were in 737s.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-201 N736N (msn 19420) of Piedmont waits for its next assignment at Atlanta. The -200 is painted in the original 1974 livery.

By 1985, the 737-300 had joined the Piedmont fleet. Although it still had the 737 designation, it seemed to be a whole new animal. Those CFM-56 engines were massive compared to the JT-8Ds on the -200s, and the 737-300 promised significant increases in payload and range, as well as significant reductions in fuel burn. Oh yes, and they were QUIET. In fact, a common complaint among crewmembers flying the -300 was that they had to lower their voices so that passengers would not join in their conversations. The cockpits of Piedmont’s -300s still had the old “steam gauges” but they also had greatly improved avionics, and even a lovely feature called “Autoland”, which the company was never actually certified to use.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-301 N307P (msn 23259) of Piedmont wears the updated white top 1974 color scheme.

Piedmont was the launch customer for the Boeing 737-400, essentially a stretched -300, and in September, 1988, I had the good fortune to fly on the delivery flight of N406US, the first 737-400 in the world to be delivered by Boeing.

Copyright Photo: Nigel P. Chalcraft/AirlinersGallery.com. The first delivered -400, Boeing 737-401 N406US (msn 23876) taxies at Fort Lauderdale/Hollywood in the bare metal 1988 livery.

At one time, Piedmont was able to claim the title of the world’s largest operator of the Boeing 737. No wonder I had a love affair with the Seven Three throughout my career in the airline industry.

In 1989, Piedmont and USAir merged and I was now working for USAir. The merger brought a large number of different aircraft types to my company, but I still loved the 737.

Copyright Photo: Christian Volpati Collection/AirlinersGallery.com. Suddenly the Piedmont name and brand were going way. USAir later gave way to US Airways as a brand.

Then in 1997, USAir CEO Steven Wolf shocked the aviation community by announcing an order for up to 400 narrow-body Airbus aircraft. Ultimately, this would reduce the composition of the company’s narrow-body fleet to one basic type (the A319, A320, and A321 are all the same basic airplane).

The handwriting was on the wall for the USAir (later US Airways) 737s…in fact, all of the narrow body aircraft operated by USAir. With respect to the 737s, the dwindling fleet of 737-200s was parked following the terrorist attacks of 9/11, while the last of the -300s was retired in 2013. Finally, on August 19, 2014, N435US operated the final flight of a US Airways 737, appropriately designated as flight US 737.

Copyright Photo: Jay Selman/AirlinersGallery.com. There are now no longer any US Airways 737 Classics operating out of the Charlotte hub. N406US landed at CLT with 43515 cycles and approximately 65405.45 hours. The airliner was a trusted performer for the carrier and has now been retired to the desert.

“Cactus 737”, its ATC callsign, flew from Charlotte to Dallas/Fort Worth (DFW) to Philadelphia and back to Charlotte on August 19, and I was able to fly all three legs on it. US Airways elected to keep the event low-key, since, after all, the “new American Airlines” is currently operating over 230 Next-Generation 737-800s, and will eventually own a fleet of over 300 of the type. But what made the trip special for me was the fact that the pilot in command, Captain Jeff Tarr, was also flying his last trip as an airline pilot.

Copyright Photo: Jay Selman/AirlinersGallery.com. The end of an era. N435US sits at the gate, unlikely to carry passengers again.

When Cactus 737 pulled into Gate D7 at 9:48 pm at CLT, there was no real fanfare for the airplane, but there was plenty of recognition for Captain Tarr.

Copyright Photo: Jay Selman/AirlinersGallery.com. Pictured in the cockpit of N435US is Captain Jeff Tarr (left) and F/O Robert Channell (right). This also was Jeff’s retirement flight.

And, after all, that is the way it should be. Too often, an airline is defined by its aircraft, or its color scheme, or its catch phrase. But what should REALLY define an airline is it’s employees. For most of us who have been in this industry for any length of time, it’s more than a job…it’s a way of life. Most of us who have been here for awhile began working in the days when we were envied for our status as airline employees. We remember hearing, “You have one of the best jobs in the world,” rather than, “I wouldn’t have your job for anything in the world.” An airline is about people, and not just airplanes.  Having said that, the Boeing 737 has been part of the airline I work for during my entire 33-year career. Admittedly, the Airbus offers many advantages to the passenger than the old 737 Classic. And, of course, once the merger is complete, I will, again, be working for a company that will be operating 300+ Next-Generation 737s.

Copyright Photo: Jay Selman/AirlinersGallery.com. The proud crew of flight US 737 that operated the flight from DFW to PHL and finally to CLT.

In my personal opinion, an Airbus simply cannot compare to a Boeing in terms of useful life and ruggedness. Why do I say this? Just consider this fact. There are still plenty of 737s around with 30+ years on their airframes. Many still haul passengers, while countless others have been converted to freight dogs. I have no idea how many 737s have been converted to cargo carriers, but I can tell you exactly how many A320s have been.  So, vive la 737. You’ve given me a great ride.

Piedmont Airlines (1st):