Tag Archives: Boeing 747-400

UPS pilots picket the UPS investor conference

The Independent Pilots Association, representing the pilots of UPS-United Parcel Service (UPS Airlines) (Atlanta and Louisville) provided an informational picket line yesterday (November 13) at the 2014 UPS Investor Conference. The union issued this statement:

The UPS pilots, represented by the Independent Pilots Association, conducted an information picket at the 2014 UPS Investor Conference held at the Grand Hyatt New York.

“We conducted this picket to inform the investment community that UPS has neglected its airline operations by failing to finalize the pilot contract,” said IPA President, Captain Robert Travis. “We prefer to reach a negotiated agreement with UPS, but with our talks now entering a fourth year, we question whether UPS is equally committed to a resolution.”

“UPS pilots have reaffirmed our intention to fly this Christmas by not seeking a release from the National Mediation Board. This holiday season, we remain committed to safe and reliable delivery,” said Travis. Under the Railway Labor Act a request for release, if granted by the NMB, could lead to a 30-day countdown to a strike, or lockout.

The IPA invites the investment community to learn more about its dispute with UPS at http://www.ipapilot.org. “Investors will want to stay informed. As UPS pilot labor talks continue, we will keep you apprised of developments” said Travis.

UPS and IPA have been following the Railway Labor Act process for the last 39 months; direct negotiations for 29 months and mediated talks for the past 10 months. Direct negotiations began in September 2011 and continued through January 2014. In early 2014, UPS and IPA jointly requested federal mediation. The National Mediation Board docketed the case in February 2014 and assigned a staff mediator to oversee further negotiations. The parties have been in mediated talks since February 2014.

The Independent Pilots Association represents the 2,600 pilots who fly globally for United Parcel Service.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-4R7F N582UP (msn 29053) lands in beautiful Anchorage, Alaska.

UPS aircraft slide show:

Atlas Air Worldwide Holdings reports adjusted net income of $27.4 million for the third quarter

Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York) has issued this financial statement for the third quarter:

Atlas Air Worldwide Holdings, Inc. announced adjusted net income attributable to common stockholders of $27.4 million, or $1.09 per diluted share, for the three months ended September 30, 2014, compared with $28.6 million, or $1.13 per diluted share, for the three months ended September 30, 2013.

On a reported basis, net income attributable to common stockholders in the third quarter of 2014 totaled $27.6 million, or $1.10 per diluted share, compared with $23.7 million, or $0.94 per diluted share, in the year-ago quarter.

AAWH recently placed three incremental Boeing 747 freighters, a 747-8F and two 747-400Fs, into ACMI service for the benefit of DHL Express and Etihad Cargo, the fast-growing freight division of Etihad Airways. The placements increase the number of our aircraft in ACMI to 22 from 19.

In addition, AAWH recently announced the expansion of our 767 CMI service in North America for DHL Express. This expansion covers four incremental 767-200 freighter aircraft owned by DHL that we expect to begin flying during the first quarter of 2015.

Adjusted earnings in the third quarter of 2014 excluded a tax adjustment of $0.1 million, or $0.01 per diluted share, related to the company’s Global Supply Systems Limited subsidiary. Adjusted earnings in the third quarter of 2013 excluded an after-tax loss of $4.5 million, or $0.18 per diluted share, on the early extinguishment of debt, and a loss of $0.3 million, or $0.01 per diluted share, on the disposal of aircraft.

Third-Quarter Results

Profitability in our ACMI business during the third quarter reflected an increase in 747-8F revenue and an increase in CMI flying, offset by an increase in maintenance expense on our -8F aircraft and lower 747-400 flying by certain ACMI customers.

In Dry Leasing, revenue and profitability grew following the addition of three 777F aircraft in January 2014 and two in July 2013, which raised our 777F fleet count to six. Each of these aircraft are leased to customers on a long-term basis.

Results in AMC Charter benefited from an increase in block hours and aircraft utilization, partially offset by a decrease in revenue per block hour due to a reduction of the average “pegged” fuel price set by the AMC. Stronger than expected demand for cargo flying and incremental passenger flying as a result of former competitors exiting the AMC Charter market drove contribution growth in the third quarter.

Profitability in Commercial Charter primarily reflected an increase in volumes and improvement in aircraft utilization compared with the third quarter of 2013. Charter operations during the quarter benefited from the broad-based uptick in demand, partially offset by additional travel and ground handling expenses from flying to high-cost locations.

Reported earnings for the period included an effective income tax rate of 29.1%, reflecting the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business.

Nine-Month Results

For the nine months ended September 30, 2014, adjusted net income attributable to common stockholders totaled $54.7 million, or $2.17 per diluted share, compared with $54.9 million, or $2.13 per diluted share, for the nine months ended September 30, 2013.

On a reported basis, nine-month 2014 net income attributable to common stockholders totaled $65.1 million, or $2.59 per diluted share, compared with $63.9 million, or $2.48 per diluted share, in the first nine months of 2013.

Cash and Short-Term Investments

At September 30, 2014, our cash, cash equivalents, short-term investments and restricted cash totaled $287.7 million, compared with $339.2 million at December 31, 2013.

The change in position reflected cash provided by operating and financing activities offset by cash used for investing activities.

Net cash used for investing activities during the first nine months of 2014 primarily related to the purchase of three 777F aircraft for our Dry Leasing business.

Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.

Share Repurchases

During the third quarter, we repurchased 458,937 shares of our common stock for $15.0 million, or 1.8% of our outstanding common stock at June 30, 2014.

Future repurchases under our remaining $45.0 million authority may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.

Outlook

Airfreight volumes continue to improve, and recent industry reports suggest that airfreight demand will grow by several percentage points in 2014 – outpacing supply and driving the first real growth since 2010. We are seeing a general increase in demand across all regions, with the greatest growth in the transpacific market. An increase in online shopping and several new high-tech product launches during peak season also continue to favor airfreight.

As a result, AAWH anticipates adjusted and reported fully diluted earnings per share of approximately $1.33 to $1.43 in the fourth quarter. AAWH is also raising its full-year 2014 adjusted earnings outlook to approximately $3.50 to $3.60 per diluted share, and our reported earnings outlook to approximately $3.92 to $4.02.

For the full year, the company expects to fly approximately 160,000 block hours, with more than 70% in ACMI, approximately 10% in AMC Charter, and the balance in Commercial Charter. The Dry Leasing segment should show dramatic growth compared with 2013. While our share of military flying, mainly in passenger service, has increased due to our ability to capitalize on additional flying opportunities and a reduction in the number of carriers serving the market, we expect an overall decline in military demand in the fourth quarter of 2014 compared with 2013.

The company also expects aircraft maintenance expense to total approximately $190 to $195 million in 2014, primarily due to performing several conditions-based engine overhauls for our 747-400 fleet during the fourth quarter. Depreciation this year is anticipated to total approximately $120 million, and core capital expenditures are expected to total about $30 to $35 million, mainly for spare parts for our expanded fleet.

Copyright Photo: The relationship with DHL continues to expand. Polar Air Cargo’s Boeing 747-47UF N416MC (msn 32838) taxies at Los Angeles.

Atlas Air:

Polar Air Cargo:

DHL-Polar Air Cargo:

UPS reports its third quarter operating profit increased 7.8% to $1.3 billion, expects holiday packages to increase by 11%

UPS (United Parcel Service) (UPS Airlines) (Atlanta and Louisville) issued this financial statement:

UPS has announced diluted earnings per share of $1.32 for the third quarter 2014, a 13.8% improvement over the prior year period. Operating profit increased 8.3%, resulting from balanced growth across all three segments.

Daily packages in the U.S. were 6.9% higher as demand from both B2C and B2B customers improved. International Export shipments increased 9.4% with strong growth in both Asia and Europe. UPS delivered 1.1 billion packages around the world, up 6.9% over the third quarter 2013.

Cash Flow

For the nine months ended Sept. 30, UPS generated $2.8 billion in free cash flow. The company paid dividends of $1.8 billion, up 8.1% per share over the prior year, and repurchased 20.6 million shares for approximately $2.1 billion.

U.S. Domestic Package

U.S. Domestic revenue increased to $8.7 billion, up 5.3% over the third quarter 2013. Daily package volume improved 6.9%, led by gains in UPS Ground and Deferred products up 7.7% and 5.9%, respectively. E-commerce continued to drive strong B2C growth, while B2B deliveries were also higher this quarter.

Operating profit was $1.3 billion, up 7.8%. Operating margin expanded 30 basis points to 14.7%. The segment experienced positive operating leverage as investments in new technology and capacity helped lower costs.

Total revenue per package declined 1.5% as base rate improvements were offset by changes in customer and product mix. UPS SurePost shipments increased more than 50%, contributing to the mix change.

During the quarter, UPS announced the expansion of its Access Point alternate delivery solution to the New York City and Chicago areas. Plans were announced to add locations in other U.S. cities, in addition to more than 4,400 existing UPS Stores, by the end of 2015.

International Package

International revenue increased 5.5% to $3.2 billion on daily package growth of 6.7%. Export products jumped 9.4% with gains from all regions of the world. Shipments out of Asia grew 16% and Europe was up 14%.

Operating profit improved 10.3% to $460 million. Operating margin expanded 70 basis points over the prior year period, to 14.5%. Revenue and cost initiatives implemented during the quarter contributed to the margin improvements.

Currency-neutral revenue per package declined 1.0% due to changing product mix and continued strength in shorter trade lanes. Non-premium products continue to outpace premium, putting pressure on yield.

On October 7, UPS announced the acquisition of international e-commerce enabler i-parcel, LLC. The company’s experience and technology in cross-border e-commerce assists U.K. and U.S. based retailers expand their reach to consumers in over 100 countries worldwide.

Supply Chain & Freight

Supply Chain and Freight revenue was up 7.4% to $2.4 billion, resulting primarily from growth in the Distribution and UPS Freight business units. Operating profit was 7% higher at $215 million, and operating margin was 8.9%.

Forwarding revenue was higher primarily due to increased International Air Freight (IAF) tonnage which was aided by high-tech product launches and Government sector gains. Operating profit improvements in North American Air Freight and Ocean Forwarding were more than offset by continued pricing pressure in IAF.

Distribution revenue increased more than 10% over the same quarter last year. Strong demand from Healthcare and Retail sector customers contributed to the growth.

UPS Freight revenue increased 7.9% to $810 million. LTL shipments were 4.7% higher and revenue per hundredweight improved 1.1%. Operating profit and margin expanded from the third quarter last year.

Outlook

The company announced its expectations for the upcoming holiday season. UPS expects shipments delivered during the month of December to climb 11% over the prior year. As previously announced, the company committed an additional $175 million in operating expense and $500 million in capital expenditures to enhance its capabilities and prepare the network for peak and future volume growth.

UPS Aircraft Slide Show:

Video: Plane Pull at Miami: UPS Americas employees, friends and family showed their support for United Way of Miami-Dade by coming out to pull a Boeing 757 weighting more than 110,000 lb. at the UPS Americas 2014 Plane Pull. The high temperatures didn’t stop the attendance of more than 250 people at the fundraiser event. Together, we pulled for a great cause.

Polar Air Cargo to operate two additional Boeing 747s for DHL Express

Atlas Air Worldwide Holdings, Inc. (New York) today announced the placement of two incremental Boeing 747 freighters into ACMI service with DHL Express.

The two aircraft, a Boeing 747-800F and a 747-400F, will be operated in Polar Air Cargo Worldwide’s express network under an ACMI arrangement for the benefit of DHL Express. Operations are scheduled to begin on October 26, 2014.

When the new ACMI service begins, Polar’s express network will total twelve 747 freighters, consisting of five Boeing 747-800Fs and seven 747-400Fs, in ACMI on behalf of DHL and Polar’s other customers. Atlas also will continue to operate a fleet of Boeing 767 Freighters in CMI service for DHL, with 11 aircraft in operation by the end of January 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Polar Air Cargo’s Boeing 747-46NF N451PA (msn 30809) arrives in Los Angeles.

DHL-Polar Air Cargo:

British Airways to resume Boeing 747-400 service on the London Heathrow-Denver route

British Airways (London) will resume Boeing 747-400 service on the London (Heathrow)-Denver route on March 29, 2015, replacing a Boeing 777-200 ER according to Airline Route. BA last operated the Jumbo on the route in 2003.

British Airways issued this statement:

British Airways announced that customers in Denver will soon be able to enjoy British Airways’ new First class cabin. From March 2015 the Denver to London service will be operated by a four class Boeing 747-400 aircraft.

British Airways began flying to Denver 16 years ago and the airline now offers a daily service to London Heathrow. The Boeing 747 aircraft will provide customers with a choice of World Traveller (economy), World Traveller Plus (premium economy), Club World (business class) and the airline’s flagship brand, First.

Premium First Experience

The First class cabin has 14 suites that are based on classic design and discrete luxury. Features include:

Individual seats that turn into a 6 ft. 6 in. fully flat beds with a simple twist of a button
Signature turn down service includes a luxurious quilted mattress, crisp white cotton duvet and pillow, along with pajamas and luxury amenity kit.
A personal closet and leather-bound writing desk that converts into a dining table
A la carte dining and a buddy seat to enable customers to dine together
A 15” in-flight entertainment screen with extensive TV, movie and audio selections
Lighting and electronic blinds that can be modified to reflect mood and time of day
All British Airways long haul flights include benefits such as free meals and all beverages, as well as free baggage allowance and seat allocation. The airline also provides a “Feed Kids First” service ensures that children are served first, allowing parents to enjoy their own meal.

British Airways Slide Show:

Cathay Pacific is facing a contract showdown with its pilots next week

Cathay Pacific Airways (Hong Kong) is facing a showdown with its pilots this coming week. 51 percent of the Hong Kong Aircrew Officers Association voted down the company’s offer on an online poll. The carrier said it was disappointed with the vote. The airline had offered a 10 percent salary increase over three years. Contract talks will start next week.

If the talks fail, the pilots may got to invoke a “contract compliance”, a form of a strike. This slow down action if implemented could have an impact on operations.

Read the full report from Malaymail Online: CLICK HERE

Cathay Pacific Aircraft Slide Show:

http://airlinersgallery.smugmug.com/Airlines-Asia-1/Airlines-Asia1-AE/Cathay-Pacific-Airways

Cathay Pacific:

Garuda Indonesia now plans to operate the last Boeing 747-400 revenue flight on January 14, 2015

Garuda Indonesia‘s (Jakarta) Boeing 747-400 fleet has dwindled down to just two aircraft. The airline has been using the aging type on mainly pilgrimage flights from Jakarta, Makassar and Medan, Indonesia to and from Jeddah, Saudi Arabia. According to Airline Route, the carrier will extend the life of the last two Jumbos until January 14, 2015 on the Jeddah-Jakarta route. Subject to another change, flight GA 9893 is likely to be the last revenue flight on this last route on January 14, 2015.

Copyright Photo: Christian Volpati/AirlinersGallery.com. Boeing 747-4U3 PK-GSH (msn 25705) is pictured in the past at Paris (CDG) in the 1985 livery.

Boeing 747 Slide Show:

Garuda Indonesia:

Video: Flying the Boeing 747-400 in Executive Class:

WestJet and China Airlines to code-share

WestJet (Calgary) has announced it has entered into a code-share agreement with China Airlines (Taipei), allowing the carrier to begin marketing and selling WestJet-operated flights. Code-share designations will be available on select WestJet flights from Vancouver and Los Angeles. Bookings can be made through China Airlines or a travel agency.

China Airlines began flying to Canada in 2000 and offers daily nonstop flights from Taipei to Vancouver.

This is the twelfth code-share agreement for WestJet. Since 2011, WestJet has initiated code-shares with American Airlines, Air France, British Airways, Cathay Pacific, China Eastern Airlines, China Southern Airlines, Delta Air Lines, Japan Airlines, KLM Royal Dutch Airlines, Korean Air and QANTAS Airways. Additionally, WestJet has 26 interline relationships, further connecting passengers worldwide to WestJet’s network.

Top Copyright Photo: Jay Selman/AirlinersGallery.com. Short version Boeing 737-6CT C-GWCY (msn 35113) of WestJet arrives in New York (JFK).

WestJet:

China Airlines:

Bottom Copyright Photo: Formerly painted in the special Boeing livery, the pictured China Airlines Boeing 747-409 B-18210 (msn 33734) has been repainted in the standard 1995 livery.

National Airlines helps to bring medical and relief supplies to Monrovia, Liberia

National Airlines (5th) (formerly Murray Air) (Orlando) is helping in the Ebola relief efforts in Liberia. In cooperation with the United States Government, National Airlines, using one of its Boeing 747-400 Freighters, carried a planeload of medical and other relief supplies from New York to the Monrovia Airport.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Formerly operated by Air France, Boeing 747-428 (F) N952CA (msn 25238) arrives at Washington’s Dulles International Airport (IAD).

National Airlines (5th):

CDC Map of affected Ebola areas in West Africa:

Delta retires three Boeing 747-400s

Delta Air Lines (Atlanta) as planned, retired three ex-Northwest Airlines Boeing 747-400s on September 30:

N671US (fleet number 6311) performed its last revenue flight on September 30 from Paris (CDG) to Detroit as flight DL 99. The Jumbo ferried to Marana, Arizona on September 30 as flight DL 9950 for final disposition.

The pictured N672US (6312) performed its last revenue flight also on September 30 from Amsterdam to Atlanta as flight DL 239. The aircraft was ferried to Marana on October 1.

N676US (6316) performed its last revenue flight also on September 30 from Tokyo (Narita) to Atlanta as flight DL 269. The aircraft was ferried to Marana on October 1.

This leaves 13 remaining in active service. Another 747-400 will be retired at the end of this year leaving a dozen.

Delta has 10 Airbus A330-300 aircraft on order which will augment Delta’s existing fleet of 32 A330s. The first new A330-300 delivery is scheduled for spring of 2015, with three additional airplanes scheduled for that year, four in 2016, and the final two in 2017.

Delta will be the first airline to operate the enhanced 242-metric ton A330-300, which offers additional payload capacity and range. Delta will use the aircraft’s versatility to optimize its Pacific and Atlantic networks.

The last Delta 747-400 is likely to be retired in 2017.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-451 N672US (msn 30267) is pictured on its final approach to Tokyo (Narita). N672US was delivered new to Northwest Airlines on July 19, 1999.

Delta Air Lines (current):

Boeing 747 Slide Show:

Northwest Airlines:

Bottom Copyright Photo: Jan Petzold/AirlinersGallery.com. Boeing 747-451 N672US departs from the Minneapolis/St. Paul hub when it was with Northwest.