Tag Archives: Boeing 747-800

Volga-Dnepr Group signs MOU for 20 additional Boeing 747-800F freighters

Boeing (Chicago, Seattle and Charleston) and Volga-Dnepr Group (Moscow) (Volga-Dnepr Airlines, Atran Airlines and AirBridgeCargo Airlines), a world leader in transportation of unique, oversize and heavy cargo, have signed a Memorandum of Understanding (MOU) to further the Group’s fleet expansion with 20 additional 747-8 Freighters (above), valued at $7.4 billion at list prices.

The agreement also adds the Antonov-124-100 aircraft (below) to the long-term logistics support for Boeing and its partners.

According to Boeing:

Boeing and Volga Dnepr have a long history of successful partnership. The Group has already supported Boeing in a number of shipments. The unique technical abilities of the Antonov 124-100, along with Volga-Dnepr’s 25 years of global operations and experience gained in transportation of aviation equipment, will further serve Boeing’s logistics needs.

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For Volga Dnepr Group, adding more 747-8 Freighters will allow development of the Group’s scheduled business, AirBridgeCargo Airlines (ABC), and keep the airline’s high growth rates. Volga-Dnepr Group was the first to order the Boeing 747-8 Freighter in Russia and took delivery of its first 747-8 Freighter in 2012. These additional 20 airplanes will be acquired through a mix of direct purchases and leasing over the next seven years.

The new 747-8 Freighter gives cargo operators the lowest operating costs and best economics of any large freighter airplane while providing enhanced environmental performance. It is optimized to provide greater revenue cargo-carrying capability than the 747-400, offering 16 percent more cargo volume while keeping its unique nose door.

Volga-Dnepr Group logo

Volga-Dnepr Group has represented the Russian airfreight industry in the international market since 1990. The Group, which includes three leading Russian all-cargo carriers – Volga-Dnepr Airlines, AirBridgeCargo Airlines and Atran Airlines – has a multinational team of 3,500 employees in fifteen countries.

Volga Dnepr currently operates 10 Antonov An-124-100s and five Ilyushin Il-76TD-90VDs, all modified under the Group special upgrade program and capable of flying to any point of the world. The fleet also includes 14 Boeing 747s – comprised of five Boeing 747-400ERFs (Extended Range Freighters), three Boeing 747-400 Freighters, six Boeing 747-8 Freighters – and three Boeing 737-400Fs.

Top Copyright Photo: Ton Jochems/AirlinersGallery.com. AirBridgeCargo Airlines-ABC Boeing 747-8HVF VQ-BRJ (msn 37670) taxies at Amsterdam.

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Bottom Copyright Photo: AirlinersGallery.com. Volga-Dnepr Airlines Antonov An-124-100 RA-82044 (msn 9773054155109) stops at Los Angeles International Airport.

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Air China brings its new Boeing 747-800 to San Francisco

Air China’s (Beijing) Boeing 747-800 Intercontinental makes its U.S. West Coast debut in San Francisco today (May 1), replacing the new-generation Boeing 777-300 ER used for the daily nonstop service between the City by the Bay and China’s capital, Beijing. A reception at the airport museum to celebrate the arrival of the inaugural flight of Air China’s Boeing 747-800 into San Francisco International Airport at 12:20 PM PDT today is hosted by the airline’s San Francisco team led by Ms. Litao Zhao, General Manager.

The Boeing 747-800 is the first and only aircraft in Air China’s fleet with a four-cabin configuration. It features 12 luxury suites in the Forbidden Pavilion (first class cabin), 54 fully-flat bed seats in the Capital Pavilion (business class), 66 premium economy seats and 233 in the economy cabin for a total of 365 seats.

The 180-degree fully-flat sleepers in the Capital Pavilion are split between the main deck and the entire upper deck, giving Air China’s guests an exclusive private space. Majority of the lie-flat bed seats are arranged in a staggered 2-2 configuration.

According to the airline, seats in premium economy and economy cabins offer more legroom for maximum comfort. An enhanced entertainment system offers a wide array of user-friendly features, including mobile app icons and a sliding touch control.

Premium economy seats offer eight inches more legroom (40 inches) than economy seats. In addition to priority boarding, premium economy passengers are offered a welcome drink, hot towels, slippers and many other inflight amenities for more convenience.

Air China’s Boeing 747-800 is also the first to sport the company’s new cabin interior which depicts three traditional Chinese cultural elements that represent the harmonious unity of heaven, earth and sky.

Flight CA 986 arrives in SFO at 12:20 PM. The return flight, flight CA 986 departs SFO at 2:50 PM (1450).

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Copyright Photo: Eric Dunetz/AirlinersGallery.com. Air China Boeing 747-89L B-2485 (msn 41191) departs from New York (JFK).

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Boeing reports first quarter GAAP net earnings of $1.3 billion

The Boeing Company (Chicago, Seattle and Charleston) reported first quarter revenue increased 8 percent to $22.1 billion on higher commercial deliveries. Core earnings per share (non-GAAP) increased 12 percent to $1.97, reflecting strong performance across the company, and GAAP earnings per share was $1.87. The Company reaffirmed its 2015 financial and deliveries guidance.

Boeing logo (medium)

Boeing 1Q15 Financial Results

Operating cash flow in the quarter was $0.1 billion, reflecting timing of receipts and expenditures, commercial airplane production rates and strong operating performance (Table 2). During the quarter, the company repurchased 17 million shares for $2.5 billion, leaving $9.5 billion remaining under the current repurchase authorization which is expected to be completed over approximately the next two to three years. The company also paid $0.6 billion in dividends in the quarter, reflecting an approximately 25 percent increase in dividends per share compared to the same period of the prior year.

Total company backlog at quarter-end was $495 billion, down from $502 billion at the beginning of the year, and included net orders for the quarter of $15 billion.

Commercial Airplanes Deliveries:

Boeing 1Q Deliveries

Commercial Airplanes first-quarter revenue increased 21 percent to $15.4 billion on higher delivery volume and mix (Table 4). First-quarter operating margin was 10.5 percent, reflecting the dilutive impact of higher 787 deliveries.

During the quarter, Commercial Airplanes captured orders for 52 737 MAX airplanes. The 737 program has won over 2,700 firm orders for the 737 MAX since launch. Also during the quarter, the company opened a new Propulsion Systems facility at Boeing South Carolina that will initially support the 737 MAX and 777X, delivered the first Boeing South Carolina-built 787-9 Dreamliner and received 330-minute ETOPS certification on the 747-8 Intercontinental.

Commercial Airplanes booked 110 net orders during the quarter. Backlog remains strong with over 5,700 airplanes valued at $435 billion.

Boeing Military Aircraft (BMA) first-quarter revenue was $2.7 billion, reflecting planned timing of deliveries and mix; operating margin was 9.5 percent. During the quarter, BMA was awarded contracts for 43 Apache helicopters.

Network & Space Systems (N&SS) first-quarter revenue was $1.7 billion, reflecting lower satellites and missile defense system program volume partially offset by higher volume on the Commercial Crew program. Operating margin increased to 9.6 percent on strong performance related to our United Launch Alliance joint venture. During the quarter, the first two all-electric Boeing 702SP satellites were launched on a single rocket.

Global Services & Support (GS&S) first-quarter revenue was $2.2 billion, reflecting slightly lower volume in integrated logistics. Operating margin increased to 14.1 percent on strong operating performance and program mix. During the quarter, GS&S was awarded a combat logistics support agreement with the U.S. Defense Logistics Agency.

Top Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8JK Intercontinental N6067E (msn 38636) taxies at Paine Field near Everett. How long will Boeing continue to build the iconic Boeing 747? Relive the past with our Boeing 747 slide shows below.

Boeing 747-8 Customers:

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Boeing 747-8 Tail

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AirBridgeCargo launches a Boeing 747 around-the-world cargo route

AirBridgeCargo Airlines-ABC (Volga-Dnepr Group) (Moscow) on April 2 launched an around-the-world route with twice-weekly cargo service on the Moscow (Sheremetyevo) – Shanghai (Pudong) – Anchorage – Los Angeles – Chicago (O’Hare) – Amsterdam route per Airline Route.

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In other news, AirBridgeCargo reported a 20% increase in tonnage for the first quarter of 2015, continuing the trend set by previous years.

According to the airline, “In the January 1-March 31 period this year, ABC carried 103,816 tons across its international route network connecting customers in Europe, the United States and Asia Pacific through its hub in Moscow.

At present the airline operates scheduled flights to 26 destinations in 14 countries using its enlarged fleet of 14 Boeing 747 family aircraft.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 747-867F VQ-BVR (msn 60687) passes through Amsterdam on the special long-range route.

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Boeing 747-800 Intercontinental receives FAA approval for 330-minute ETOPS

Boeing (Chicago, Seattle and Charleston) has received 330-minute Extended Operations (ETOPS) approval from the U.S. Federal Aviation Administration (FAA) for the Boeing 747-8 Intercontinental. It is the first time a four-engine airplane has received this type of design approval.

With this approval, required for four-engine passenger airplanes built after Feb. 2015 to fly beyond 180 minutes from an en-route alternate airport, the 747-8’s design is approved to conduct 330-minute ETOPS missions. These missions allow operators to fly long-distances more directly on virtually any worldwide city pair routing.

Although ETOPS has been a requirement for twin-engine airplanes since the 1980s, the regulations have recently been applied to the design of passenger airplanes with more than two engines.

With 83 airplanes in service with 11 customers, 747-8s have logged more than 619,000 flight hours and more than 101,000 flight cycles.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8KZF N50217 (JA12KZ) (msn 36137) climbs away from Paine Field near Everett.

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Lufthansa Group’s 2014 net profit declines over 84% to only $58.1 million

Lufthansa Group (Frankfurt) reported a much lower 2014 net profit of €55 million ($58.1 million), down significantly from €313 million ($330.8 million) for 2013. The group blamed the decline “to a number of factors, particularly a reduction in the market value of the exchangeable notes for JetBlue shares and the adverse impact of the changes in the value of fuel price hedging options. The net result under IFRS was further burdened by the contractually-agreed sale of the infrastructure division of Lufthansa Systems AG.” The strikes by the LH pilots also hurt.

Revenue for the year remained flat at €30 billion ($31.7 billion).

Here is the full statement:

Deutsche Lufthansa AG achieved its operating-result objective for 2014. The EUR 954 million operating profit reported for the year was a EUR 255 million or 37% improvement on the prior-year result. Following a revision of its original projections owing to negative yield trends and the extraordinary impact of strike action, the company had projected an operating profit for the year of EUR 1 billion in June 2014, provided no additional costs were incurred through further industrial action.

Total Lufthansa Group revenue for the year remained broadly unchanged at around EUR 30 billion, despite the substantial yield declines in the passenger transport segment. Results were boosted by a EUR 364 million decline in fuel costs (deriving largely from fuel price reductions) and a EUR 351 million benefit from the changes that were made to the Lufthansa Group’s aircraft and spare powerplant depreciation policy in 2014.

Strike actions by pilots and security personnel reduced the 2014 operating result by a total of EUR 232 million (EUR 62 million thereof in December alone). The adjusted operating result, which excludes the non-recurring effects of SCORE-related restructuring costs and project costs, amounted to EUR 1.2 billion (compared to EUR 1.0 billion for 2013). The high investments of EUR 2.8 billion were largely concerned with fleet renewals and cabin interior enhancements.

“Our results for 2014 show us clearly where we currently stand,” says Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. “On the one hand, all the business segments of the Lufthansa Group are profitable and, with an operating profit of almost EUR 1 billion, we achieved our projection in a far-from-easy year. At the same time, though, with our high investments in modern aircraft and premium services, we simply have to further increase our operating profit. For this we need competitive structures; and that’s what we continue to consistently work on.”

Net profit for the year under IFRS amounted to EUR 55 million, substantially below the EUR 313 million of 2013. The decline is attributable to a number of factors, particularly a reduction in the market value of the exchangeable notes for JetBlue shares and the adverse impact of the changes in the value of fuel price hedging options. The net result under IFRS was further burdened by the contractually-agreed sale of the infrastructure division of Lufthansa Systems AG.

The 2014 net result under the German local GAAP HGB was even further depressed. In addition to the sale of the IT infrastructure division, the net result here was reduced in particular by an increase in pension liabilities following a further fall in average interest rates, and by the need to make provisions for contingent losses on fuel price hedges following the steep oil price declines. As a consequence, the net result under the local GAAP HGB amounted to EUR -732 million. The loss was offset by a corresponding transfer from capital reserves. In view of the HGB net loss, no dividend can be distributed for 2014.

“Given the results that we achieved in our core business, we can no longer regard sticking to inherited uneconomic structures as an option for the future of the Lufthansa Group,” Carsten Spohr concludes. “The competitive pressures on our airlines will only further increase. We have substantially improved our products and services, and we’ve further raised the quality of our group member carriers. We’re back among the world’s best airlines in the eyes of our customers. What we need to do now is lay the foundations on which we can regain a leading position in our industry in economic terms, too.”

Passenger airlines feel intensified market pressures

The Passenger Airline Group contributed EUR 553 million to the group operating result, a EUR 40 million increase on the EUR 513 million of the previous year. Despite substantial assistance in the form of lower fuel costs and the changed depreciation policy, Lufthansa German Airlines’ EUR 252 million operating profit fell short of the EUR 282 million of 2013. The results for Lufthansa German Airlines include those of Germanwings, which made further progress in 2014 on its path to profitability. SWISS met expectations with an operating profit of EUR 289 million.

Austrian Airlines posted an operating profit of EUR 10 million, substantially down from the EUR 25 million of 2013. The decline is in part the result of falling yields on numerous routes. Yield declines in the face of a further intensification of competitive pressures were tangibly felt in the results of all the Lufthansa Group’s member airlines. In addition, Austrian Airlines’ results for 2014 also include the one-off costs incurred in the conclusion of a new and more competitive collective labor agreement with its personnel. On the plus side, the new CLA marks a major step for the carrier towards establishing competitive structures, and thus lays a key foundation for its future success.

Positive trends at Lufthansa Cargo and the service companies

The service companies of the Lufthansa Group maintained their operating results at their previous high levels. Lufthansa Technik posted an operating profit of EUR 392 million, only slightly short of its record EUR 404 million of 2013. LSG Sky Chefs also continued its strong business performance of the past few years with an operating profit of EUR 100 million. IT Services, which was being reported as a single business entity for the last time in 2014, posted another favourable operating profit of EUR 37 million (compared to EUR 36 million for 2013). Lufthansa Cargo raised its operating profit from the EUR 79 million of 2013 to EUR 100 million. Despite tough competition within the airfreight sector and higher depreciation needs, the Lufthansa Group’s logistics business was able to maintain its success thanks to its efficient capacity management and its modernized freighter fleet.

“With their strong business results, our service companies have shown once again that they make an invaluable contribution to the broad-based positioning of the Lufthansa Group,” comments Simone Menne, Chief Officer Finance & Aviation Services of Deutsche Lufthansa AG. “They generate stable returns and they are active participants in the further global growth of the aviation sector. And with our goal of raising the proportion of Lufthansa Group revenues that we generate outside our classic airline hub business from 30% to 40%, we want to make even greater use in future of this stabilizing effect.”

Lufthansa aims to be first choice for customers, employees, shareholders and partners

The Lufthansa Group unveiled an ambitious work programme with seven fields of action last July. In addition to other objectives, the programme is intended to secure quality leadership in the Group’s business segments, enhance the efficiency of organizational structures and processes and strengthen the Group’s innovative credentials. This in turn should enable the Group to devise, develop and implement profitable new concepts for its further growth. The new Eurowings, which will offer attractive short- and long-haul services from the 2015/16 winter schedules onwards, is one example of the new growth opportunities that can arise from an efficient structural foundation.

Many further efficiency-enhancing projects and actions were developed under the groupwide SCORE programme last year. All in all, SCORE generated over 6,000 individual projects between 2012 and 2014 that contributed EUR 2.5 billion to the Group’s bottom line. At the same time, however, these results enhancements have been almost entirely nullified by adverse trends over the same period, such as cost inflation and yield declines. SCORE will now be incorporated into one of the fields of action within the work programme, and will thus become a permanent groupwide concern.

“After the safety of our flight operations, it’s ensuring our future viability that is our paramount priority,” said Carsten Spohr on the Lufthansa Group’s further development at the Annual Results Media Conference today. “And, having set our key courses in 2014, we’ll be placing the focus this year on putting into practice what we’ve resolved to do to achieve this objective.”

Clearer projection for 2015: adjusted EBIT of over EUR 1.5 billion

The Lufthansa Group expects business to improve in 2015, when the Group will adopt the new financial indicators of EBIT and adjusted EBIT for the first time. Adjusted EBIT is EBIT (earnings before interest and taxes) net of book gains or losses on disposals, extraordinary appreciation or depreciation and non-recurring pension-fund transactions. The switch should enhance the transparency and the comparability of the Lufthansa Group’s results. For 2015 the Group expects to report an adjusted EBIT of over EUR 1.5 billion, a substantial improvement on the 2014 group operating result. Adjusted EBIT for 2014 amounted to EUR 1.2 billion.

Lufthansa German Airlines expects to post a tangible improvement in its operating result, though this will continue to be saddled by fleet re-equipment project costs. Groupwide investments are planned to total EUR 2.9 billion in 2015, but should then be limited to EUR 2.5 billion each in 2016 and 2017. For SWISS the Group expects an operating result that is broadly in line with 2014’s, despite the adversities caused by the strengthening of the Swiss franc.

Austrian Airlines should reap the benefits of its restructuring programme in the course of 2015 and achieve a substantial improvement in its operating result. Lufthansa Cargo is expected to effect a slight improvement in results, while the profits at Lufthansa Technik are likely to see a slight decline as the Group’s MRO business invests more substantially in growth projects. The Lufthansa Group also expects to report a tangible increase in operating profit at LSG Sky Chefs, the world’s leading airline catering group.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-830 D-ABYP (msn 37839) with the special “1500th Boeing 747” markings arrives at Los Angeles International Airport.

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Korean Air to introduce the Boeing 747-800 on the London Heathrow route

Korean Air (Seoul-Incheon) has 10 passenger Boeing 747-800 Intercontinental Jumbos on order with the first copy due this year. The carrier already operates five freighter versions.

The carrier is now planning to introduce the passenger version on August 2, three days a week, on the Seoul (Incheon) – London (Heathrow) route. The new type will be operated on a daily basis starting on September 1 per Airline Route.

The newer Boeing 747-800s will replace the older remaining Boeing 747-400s.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Korean Air is already an operator of the freighter version. Boeing 747-8HTF HL7609 (msn 37132) prepares to touch down in Anchorage, Alaska.

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