Tag Archives: Boeing 747

Atlas Air Worldwide Holdings reports 2Q adjusted net income of $15.9 million

Atlas Air Worldwide Holdings (Atlas Air and Polar Air Cargo) (New York) reported adjusted net income of $15.9 million for the second quarter.

The company issued this statement:

Atlas Air Worldwide Holdings, Inc., a leading global provider of outsourced aircraft and aviation operating services, announced adjusted net income attributable to common stockholders of $15.9 million, or $0.63 per diluted share, for the three months ended June 30, 2014, compared with $20.4 million, or $0.79 per diluted share, for the three months ended June 30, 2013.

On a reported basis, net income attributable to common stockholders in the second quarter of 2014 totaled $29.6 million, or $1.17 per diluted share, compared with $20.1 million, or $0.78 per diluted share, in the year-ago quarter.

“We are off to a good start in 2014. Airfreight demand is improving, and we are encouraged about our full-year outlook,” said William J. Flynn, President and Chief Executive Officer. “As we continue to gather additional insight into second-half yields, demand and military requirements, we are maintaining our full-year earnings framework.”

Mr. Flynn added: “Atlas is an entrepreneurial company. Our second-quarter results illustrate the positive contributions being generated by the investments we’ve made and the initiatives we’ve undertaken. In the face of an uncertain airfreight market and an anticipated decline in military cargo demand, we have diversified our business mix and are driving business resilience.

“Results within our ACMI segment are benefiting from modern 747-8 freighters as well as an increase in flying for our CMI customers. In Dry Leasing, the investments we’ve made since early 2013 in attractive 777 freighters on long-term leases with strong customers are driving a significant increase in contribution from highly predictable revenue and earnings streams.

“In addition, the expansion of our 767 platform and our growth into military and commercial passenger charter operations are providing added strength, complementing the improvement in airfreight demand.

“Led by the strength of our brand, our global market leadership in outsourced aircraft assets and services, and our ability to work closely with our customers as they enhance their route networks and grow their businesses, we are well-positioned to take advantage of market opportunities and improvement – and to continue our focus on longer-term business growth.”

Adjusted earnings in the second quarter of 2014 exclude an income tax benefit of $24.0 million, or $0.95 per diluted share, due to beneficial tax planning related to the tax treatment of extraterritorial income. This was partly offset by a noncash loss of $9.4 million after tax, or $0.37 per diluted share, resulting from the trade-in of used spare engines for new engines under the company’s engine-acquisition program, as well as additional charges totaling $1.0 million after tax, or $0.04 per diluted share, which were primarily related to the company’s U.K. affiliate, Global Supply Systems Limited.

Adjusted earnings in the second quarter of 2013 exclude an after-tax loss of $0.6 million, or $0.02 per diluted share, on the early extinguishment of debt, partly offset by an after-tax gain of $0.3 million, or $0.01 per diluted share, on the disposal of aircraft.

Second-Quarter Results

Profitability in our ACMI business during the second quarter reflected an increase in 747-8F revenue and an increase in CMI flying, offset by higher maintenance expense for aircraft operating in this segment.

ACMI revenues benefited from an increase in our average rate per block hour driven by our 747-8Fs, but were impacted by a decline in block-hour volumes related to the return of three 8Fs from British Airways in April and early May. This decline was partially offset by the placement of two of the 8Fs with DHL Express in May, the start-up of ACMI 8F flying for BST Logistics in February 2014 and Etihad in May 2013, as well as the start-up of ACMI 747-400 flying for Astral Aviation in September 2013. Block-hour volumes during the second quarter also reflected an increase in CMI Dreamlifter flying for Boeing and the initiation of CMI 767-200 passenger aircraft service for MLW Air during the third quarter of 2013.

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.

In AMC Charter, results benefited from an increase in the volume of passenger flying on higher-yielding 747-400 aircraft, partially offset by a decrease in demand for cargo flying. Segment results in Commercial Charter reflected a decrease in market rates and increases in maintenance and crewmember travel expense, partially offset by an increase in block-hour volumes.

Reported earnings for the period reflected an effective income tax rate benefit of 461.0%, driven by tax-planning efforts regarding a federal income tax benefit related to the treatment of extraterritorial income from the offshore leasing of certain of our aircraft.

Half-Year Results

For the six months ended June 30, 2014, adjusted net income attributable to common stockholders totaled $27.3 million, or $1.08 per diluted share, compared with $26.3 million, or $1.01 per diluted share, for the six months ended June 30, 2013.

On a reported basis, first-half 2014 net income attributable to common stockholders totaled $37.5 million, or $1.49 per diluted share, compared with $40.1 million, or $1.54 per diluted share, in the first half of 2013.

Cash and Short-Term Investments

At June 30, 2014, our cash, cash equivalents, short-term investments and restricted cash totaled $299.2 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 half 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.

Outlook

We are encouraged by our performance in the first half of 2014 and the positive direction of market trends so far this year.

Airfreight volumes continue to improve, and recent forecasts suggest that airfreight demand may grow by several percentage points in 2014 – the first real growth after three essentially flat years. Airfreight yields continue to lag behind, however, and there is still limited visibility into peak-season yields, demand and second-half military requirements. As a result, we are maintaining our earnings outlook for the full year.

On a sequential basis, per-share earnings in the third quarter of this year should improve over our adjusted second-quarter results by an increment similar to the increase between our first- and second-quarter adjusted earnings.

For the full year, we expect total block hours to be comparable to 2013, with more than 70% in ACMI, approximately 10% in AMC Charter, and the balance in Commercial Charter. Our Dry Leasing segment should show dramatic growth compared with 2013. While our share of military flying, mainly in passenger service, has increased due to a reduction in the number of carriers serving the market and our ability to capitalize on additional flying opportunities, we continue to expect an overall decline in military demand, primarily in cargo, compared with 2013.

We also expect aircraft maintenance expense to total approximately $180 million in 2014, with depreciation of approximately $120 to $125 million. Core capital expenditures this year are expected to total approximately $45 to $50 million, mainly for spare parts for our expanded fleet.

We remain confident in the resilience of our business model, as well as our ability to adapt to the market and to leverage the scale and efficiencies in our operations. The business initiatives we have undertaken and the investments we have made have enabled the company to deliver meaningful earnings in any environment.

Should 2014 be the inflection point when growth returns to commercial airfreight and yields improve, our business initiatives and the investments we have made have positioned Atlas to be one of the prime beneficiaries.

Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Through Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-87UF N852GT (msn 37571) of Atlas Air taxies at Anchorage, AK.

Atlas Air:

Polar Air Cargo:

Lufthansa Group resumes flights to Erbil, otherwise will avoid Iraqi airspace

Lufthansa Group (Frankfurt) has issued this statement about flying over Iraq:

After renewed consultation with the relevant national security authorities, the Lufthansa Group has decided to resume flights to Erbil in northern Iraq (Kurdistan) from today (August 4). Erbil lies well outside the direct crisis zone in Iraq, and flights to and from the city will be routed to avoid overflying the zone. Lufthansa (Frankfurt) flies twice-weekly to Erbil, a further daily flight is operated by Austrian Airlines (Vienna).

For the time being, however, transit traffic to Asia and the Middle East, for example, will continue to detour Iraqi airspace. The Lufthansa Group is in close and regular contact with the relevant national security authorities, also in Iraq. Based on our own assessment, there is currently no danger in overflying Iraq. Nevertheless, the Lufthansa Group has decided to avoid the Iraqi airspace above the section controlled by Isis for the time being. In taking this step, the Lufthansa Group is taking into account the growing apprehension of customers and our own flight crews. The safety and well being of passengers is naturally our paramount priority. The changes in flight routes apply to all airlines in the Lufthansa Group. Aside from Lufthansa, those airlines include Lufthansa Cargo, Austrian Airlines and Swiss. The new flight routes will not significantly lengthen flight times.

Copyright Photo: TMK Photography/AirlinersGallery.com. Boeing 747-430 D-ABVS (msn 28286) of Lufthansa with the short-lived “Fanhansa” titles for the recent FIFA World Cup departs from Toronto (Pearson).

Lufthansa:

Austrian:

Delta to start phasing out its Boeing 747-400s

Delta Air Lines (Atlanta) currently operates 16 ex-Northwest Airlines Boeing 747-400s. According to FrequentBusinessTraveler.com citing a memo to its pilots, Delta will retire three aircraft by the end of September and another by the end of this year leaving 12 in the fleet.

Delta was originally a Boeing 747-100 operator and became a 747 operator again with the Northwest Airlines merger.

Read the full report: CLICK HERE

Delta Air Lines:

Air France-KLM reduces its first half net loss to $824.6 million

Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) reported a net loss of €614 million ($824.6 million), an improvement of €185 million ($248.4 million).

As part of the expanding Transavia lower-fare operations the Group issued this statement:

In the Second Quarter of 2014, Transavia capacity was up 4.8%, reflecting the accelerated development of Transavia France (up 10%) and the repositioning of Transavia Netherlands (up 3% including a 6% reduction in charter capacity). Traffic rose 6.0%, leading to a record high load factor of 90.7% (up 0.9 point). Unit revenue was down 1.7%. Transavia’s total revenue stood at 296 million euros, up 5.0%. The operating result was -6 million euros, down 3 million euros year-on-year.

In the First Half of 2014, Transavia traffic increased by 6.9% for capacity up 5.8%, leading to a 0.9 point increase in load factor to 89.2%. Unit revenue was down 2.6%. Total revenue stood at 435 million euros, up 4.5%, while the unit cost per ASK decreased by 0.8%, but increased by 0.5% on a constant currency basis. The operating result decreased by 10 million euros to -64 million euros, mainly due to the ramp up of Transavia France.

Overall the Group issued this outlook:

Delivery on the Transform 2015 plan is fully on track. However, as indicated at the beginning of the month, the operating environment remains tough, with industry overcapacity on certain long-haul routes, notably North America and Asia, impacting yields. This trend comes on top of the persistently weak cargo demand and the challenging situation in Venezuela already identified in the First Quarter.

Under these conditions, as indicated at the beginning of the month, 2014 EBITDA is expected to be between 2.2 and 2.3 billion euros. Strong capital discipline will enable the group to remain on track in terms of debt reduction and achieve its objective of 4.5 billion euros in net debt in 2015.

Read the full report: CLICK HERE

Top Copyright Photo: Brian McDonough/AirlinersGallery.com. Air France’s Airbus A380-861 F-HPJE (msn 052) with the special logo to celebrate 50 years of France-China diplomatic relations.

Air France:

KLM:

Transavia (Netherlands):

Transavia (France):

Hop!:

Fleet Information:

Bottom Copyright Photo: TMK Photography/AirlinersGallery.com. Boeing 747-406 PH-BFF (msn 24202) completes its final approach to the runway at Toronto (Pearson).

Delta suspends its flights to Israel due to the on-going violence

Delta Air Lines (Atlanta) today suspended all flights to Tel Aviv, Israel due to nearby rocket attacks according to CNN. Today’s flight DL 469 from New York (JFK) diverted to Paris (Charles de Gualle).

The suspension is for 24 hours.

The suspension of service to Israel comes after the State Department issued this statement:

The U.S. Department of State warns U.S. citizens of the risks of traveling to Israel, the West Bank and Gaza due to ongoing hostilities. The Department of State recommends that U.S. citizens consider the deferral of non-essential travel to Israel and the West Bank and reaffirms the longstanding strong warning to U.S. citizens against any travel to the Gaza Strip. This Travel Warning replaces the Travel Warning issued on February 3, 2014.

The security environment remains complex in Israel, the West Bank, and Gaza, and U.S. citizens need to be aware of the risks of travel to these areas because of the current conflict between Hamas and Israel.

The Department of State continues its longstanding strong warning to U.S. citizens against travel to the Gaza Strip; U.S. government employees are not allowed to conduct official or personal travel there. Please see the section below on the situation in the Gaza Strip. Because of the security situation, the U.S. Embassy in Tel Aviv and its annexes are currently operating at reduced staffing and the Consular Section of the Embassy is providing only emergency consular services. The U.S. Consulate General in Jerusalem is currently maintaining normal operations, including consular services.

Long-range rockets launched from Gaza since July 8, 2014 have reached many locations in Israel – including Tel Aviv, cities farther north, and throughout the south of the country. Some rockets have reached Jerusalem and parts of the West Bank, including Bethlehem and Hebron. While many rockets have been intercepted by the Iron Dome missile defense system, there have been impacts that have caused damage and injury. In light of the ongoing rocket attacks, U.S. citizen visitors to and U.S. citizen residents of Israel and the West Bank should familiarize themselves with the location of the nearest bomb shelter or other hardened site, if available. Visitors should seek information on shelters from hotel staff or building managers. Consult city municipality websites, such as those for Jerusalem and Tel Aviv, for lists of public bomb shelters and other emergency preparedness information. Visitors should follow the instructions of the Home Front Command on proper procedures in the event of rocket attacks.

Travelers should avoid areas of Israel in the vicinity of the Gaza Strip due to the real risks presented by small arms fire, anti-tank weapons, rockets, and mortars, as attacks from Gaza can come with little or no warning. Both Embassy and Consulate General personnel are currently not permitted to travel south of greater Tel Aviv without prior approval. On July 17, 2014 Israel announced the commencement of ground operations in Gaza. Visitors to these areas should remain aware of their surroundings and should take note of announcements and guidance provided by the Home Front Command.

Ben Gurion Airport is currently open and commercial flights are operating normally, although delays and cancellations can occur. Travelers should check with their airline prior to their planned travel to verify the flight schedule. U.S. citizens seeking to depart Israel or the West Bank are responsible for making their own travel arrangements.

We are not evacuating U.S. citizens out of Israel. U.S. government-facilitated evacuations occur only when no safe commercial alternatives exist. Evacuation assistance is provided on a cost-recovery basis, which means the traveler must reimburse the U.S. government for travel costs. The lack of a valid U.S. passport may hinder U.S. citizens’ ability to depart the country and may slow the U.S. Embassy or

Consulate General’s ability to provide assistance.

U.S. citizens who do travel to or remain in Israel, the West Bank and Gaza should take into consideration the rules governing travel by U.S. government employees:

U.S. government personnel are not permitted to conduct official or personal travel to the Gaza Strip;
U.S. government personnel are restricted from conducting personal travel to most parts of the West Bank; travel for official business is done with special security arrangements coordinated by the U.S.

Consulate General in Jerusalem;

Currently, because of the security situation, U.S. government personnel are not permitted to travel south of greater Tel Aviv without prior approval;

U.S. government personnel must notify Embassy Tel Aviv’s Regional Security Officer before traveling in the areas of the Golan Heights and are prohibited from traveling east of Rt. 98 in the Golan Heights;

U.S. government personnel are not permitted to use public buses anywhere in Israel or the West Bank due to past attacks on public transportation.

Major Metropolitan Areas in Israel

Personal safety conditions in major metropolitan areas, including Tel Aviv and Haifa and their surrounding regions, are comparable to or better than those in other major global cities. Please see below for specific information regarding Jerusalem. Visitors should observe appropriate personal security practices to reduce their vulnerability to crime, particularly late at night or in isolated or economically depressed areas, including in the countryside. Visitors are advised to avoid large gatherings or demonstrations and keep current with local news, which is available through numerous English language sources.

The Government of Israel has had a long-standing policy of issuing gas masks to its citizens and, starting in 2010, it began issuing replacement masks. It stopped this distribution process in early 2014 in response to regional events. Visitors and foreign residents in Israel are not issued masks and must individually procure them, if desired. The U.S. Embassy and Consulate General do not provide gas masks for persons who are not U.S. government employees or their dependents. For further emergency preparedness guidance, please visit the website of the Government of Israel’s Home Front Command, which provides information on how to choose a secure space in a home or apartment, as well as a list of the types of protective kits (gas masks) issued by the Government of Israel to its citizens.

Gaza Vicinity

The Department of State recommends against travel to areas of Israel in the vicinity of the Gaza Strip. Travelers should be aware of the risks presented by the current military conflict between Hamas and Israel. On July 17, 2014 Israel announced the commencement of ground operations in Gaza. Travelers in the regions immediately bordering Gaza may encounter small arms fire, anti-tank weapons, rockets, and mortars launched from inside Gaza toward Israeli cities and towns. These attacks can come with little or no warning. Visitors to these areas should remain aware of their surroundings and of the location of bomb shelters and should take note of announcements and guidance provided by the Home Front Command.

Travelers should also be aware of the heightened state of alert maintained by Israeli authorities along Israel’s border with Egypt. There have been cross-border incidents from Egypt, including rocket attacks and ground incursions, such as an attack that took place in August 2013 and one on January 20, 2014. Rockets were fired from Sinai in the direction of Eilat on July 15, 2014.

Northern Israel

Rocket attacks into Israel from Lebanon have occurred without warning along the Israeli-Lebanese border. Tensions have increased along portions of the Disengagement Zone with Syria in the Golan Heights as a result of the internal conflict occurring in Syria. Sporadic gunfire has occurred along the border region. There have been several incidents of mortar shells and light arms fire impacting on the Israeli-controlled side of the zone as a result of spillover from the fighting in Syria. Travelers should be aware that cross-border gunfire can occur without warning. Furthermore, there are active land mines in areas of the Golan Heights, so visitors should walk only on established roads or trails. The Syrian conflict is sporadic and unpredictable. U.S. government personnel must notify the Embassy’s Regional Security Office in advance if they plan to visit the Golan Heights and are prohibited from traveling east of Rt. 98 in the Golan Heights.

Jerusalem

U.S. citizens should be aware of the possibility of isolated street protests, particularly within the Old City and areas around Salah Ed-Din Street, Damascus Gate, Silwan, and the Sheikh Jarrah neighborhood. Travelers should exercise caution at religious sites on Fridays and on holy days, including during Ramadan. U.S. government employees are prohibited from entering the Old City on Fridays during the month of Ramadan due to congestion and security-related access restrictions.

U.S. government employees are prohibited from transiting Independence Park in central Jerusalem during the hours of darkness due to reports of criminal activity.

The Consulate General notes that recent demonstrations and clashes in several East Jerusalem areas, such as Shufat, Beit Hanina, Mt. of Olives, As Suwaneh, Abu Deis, Silwan, Shuafat Refugee Camp, inside the Old City (near Lions Gate), Issawiyeh, and Tsur Baher appear to have diminished, although the possibility exists of renewed clashes in the same areas during evenings. We note that the clashes and demonstrations have not been anti-American in nature. The Israel National Police (INP) continues to have a heavy presence in many of the neighborhoods that have had clashes and may restrict vehicular traffic to some of these neighborhoods without notice. We advise citizens not to enter any neighborhoods restricted by the INP and to avoid any locations that have active clashes ongoing.

The Shufat neighborhood of Jerusalem remains off-limits for official U.S. personnel and their families at night until further notice. The Old City of Jerusalem is also off-limits every day after dark for official U.S. personnel and their families until further notice. Official U.S. personnel are restricted from the Old City of Jerusalem at all times on Fridays during Ramadan. The Friday restriction is part of our standard policy, due to overall congestion and large crowds, and is not related to recent events.

The West Bank

The Department of State urges U.S. citizens to exercise caution when traveling to the West Bank. Demonstrations and violent incidents can occur without warning, and vehicles are regularly targeted by rocks, Molotov cocktails, and gunfire on West Bank roads. U.S citizens have been killed in such attacks. There have also been an increasing number of violent incidents involving Israeli settlers and Palestinian villagers in the corridor stretching from Ramallah to Nablus, including attacks by Israeli settlers on Palestinian villages in which U.S. citizens have suffered injury or property damage, and attacks by Palestinians on settlements. U.S. citizens can be caught in the middle of potentially dangerous situations, and some U.S. citizens involved in political demonstrations in the West Bank have sustained serious injuries. The Department of State recommends that U.S. citizens, for their own safety, avoid all demonstrations. During periods of unrest, the Israeli Government may restrict access to the West Bank, and some areas may be placed under curfew. All persons in areas under curfew should remain indoors to avoid arrest or injury. Security conditions in the West Bank may hinder the ability of consular staff to offer timely assistance to U.S. citizens.

Personal travel in the West Bank by U.S. government personnel and their families is permitted to the towns of Bethlehem and Jericho and on Routes 1, 443, and 90. Personal travel is also permitted to Qumran off Route 90 by the Dead Sea, as are stops at roadside facilities along Routes 1 and 90. All other personal travel by U.S. government personnel in the West Bank is prohibited. U.S. government personnel routinely travel to the West Bank for official business, but do so with special security arrangements.

The Gaza Strip

The Department of State strongly urges U.S. citizens to avoid all travel to the Gaza Strip, which is under the control of Hamas, a foreign terrorist organization. U.S. citizens in Gaza are advised to depart immediately. The security environment within Gaza, including its border with Egypt and its seacoast, is dangerous and volatile. Exchanges of fire between the Israel Defense Forces and militant groups in Gaza take place regularly, and civilians have been caught in the crossfire in the past. Although the Rafah crossing between Gaza and Egypt normally allows for some passenger travel, prior coordination with local authorities — which could take days or weeks to process — is generally required, and crossing points may be closed for days or weeks. Travelers who enter the Gaza Strip through the Rafah crossing must also exit through the Rafah crossing, and those entering the Gaza Strip may not be able to depart at a time of their choosing. Many U.S. citizens have been unable to exit Gaza or faced lengthy delays in doing so. Furthermore, the schedule and requirements for exiting through the Rafah crossing are unpredictable and can involve significant expense. Because U.S. citizen employees of the U.S. government are not allowed to enter the Gaza Strip or have contact with Hamas, the ability of consular staff to offer timely assistance to U.S. citizens, including assistance departing Gaza, is extremely limited.

Entry/Exit Difficulties

Some U.S. citizens holding Israeli nationality, possessing a Palestinian identity card, or who are of Arab or Muslim origin have experienced significant difficulties in entering or exiting Israel or the West Bank. U.S. citizens planning to travel to Israel, the West Bank, or Gaza should consult the detailed information concerning entry and exit difficulties in the Country Specific Information.

Contact the Consular Section of the U.S. Embassy for information and assistance in Israel, the Golan Heights, and ports of entry at Ben Gurion Airport, Haifa Port, the northern (Jordan River/Sheikh Hussein) and southern (Arava) border crossings connecting Israel and Jordan, and the border crossings between Israel and Egypt. An embassy officer can be contacted at (972) (3) 519-7575 from Monday through Friday during working hours. The after-hours emergency number is (972) (3) 519-7551.

Contact the Consular Section of the U.S. Consulate General in Jerusalem for information and assistance in Jerusalem, the West Bank, the Gaza Strip, and the Allenby/King Hussein Bridge crossing between the West Bank and Jordan, at (972) (2) 630-4000 from Monday through Friday during working hours. The after-hours emergency number is (972) (2) 622-7250.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-451 N663US (msn 23818) prepares to land in Tokyo (Narita).

Delta Air Lines (current):

Air France-KLM revise their earnings forecast, stock declines over 5%

Air France-KLM Group (Air France and KLM Royal Dutch Airlines) (Amsterdam) has issued a profit warning, lowering it profit forecast from 2.5 billion euros to around 2.25 billion. The stock tumbled over 5 percent.

The Group issued this statement in their June traffic numbers:

“While not representing a turning point in market trends, the June traffic figures published today as well as bookings for July and August nevertheless reflect the over-capacity on certain long-haul routes, notably North America and Asia, with the attendant impact on yields. This comes on top of the persistently weak cargo demand and the challenging situation in Venezuela identified in the First Quarter.

These factors lead us to revise our EBITDA target for Full Year 2014 from around 2.5 billion euros to between 2.2 and 2.3 billion euros, a rise of over 20% compared with 2013.

Strong capital disciple will enable us to remain on track in terms of debt reduction and we confirm our objective of 4.5 billion euros in net debt in 2015.”

Read the analysis on City Index: CLICK HERE

Top Copyright Photo: TMK Photography/AirlinersGallery.com. Air France’s Boeing 747-428 F-GITJ (msn 32871) climbs into the clear skies after departing from Toronto (Pearson) bound for Paris (CDG).

Air France:

KLM:

Bottom Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 747-406 PH-BFL (msn 25356) of KLM completes its final approach to the runway at JFK International Airport in New York.

Lufthansa to fly the Boeing 747-800 Intercontinental on the Frankfurt-New York route

Lufthansa (Frankfurt) will assign the newer Boeing 747-800 Intercontinental on the Frankfurt-New York (JFK) route from July 15 through October 25. The 747-8I will replace an older 747-400 with daily service according to Airline Route.

Lufthansa received its first 747-830 (D-ABYA) on April 25, 2012 and introduced the new type on the Frankfurt-Washingon (Dulles) route on June 1, 2012 as we have previously reported.

Copyright Photo: Bernhard Ross/AirlinersGallery.com. Wearing the special Fanhansa titles in support for the current 2014 World Cup, Boeing 747-830 D-ABYO (msn 37841) awaits its next assignment at the Frankfurt hub.

Lufthansa:

Lufthansa and Air China to strengthen their partnership

Lufthansa (Frankfurt) has issued this statement:

Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, and Song Zhiyong, President and Executive Director of Air China Limited (Beijing), signed a memorandum of understanding (MOU) to enhance the commercial partnership as part of a joint venture, during the Chancellor’s visit to China.

Both companies also signed a memorandum of understanding to expand collaboration in the area of maintenance, repair and overhaul services.

As members of the Star Alliance, Lufthansa and Air China have been connected for a number of years. The memorandum of understanding should pave the way for the creation of a commercial joint venture between the German airline and Air China.

This partnership will add to the existing joint ventures with United Airlines and with Air Canada between Europe and North America (since 1998) and with ANA (since 2012) on routes between Europe and Japan.

The agreement with Air China will allow the Lufthansa Group to provide its airlines with even better access to the world’s second largest aviation market after the USA.

The new partnership agreement should come into force as early as the start of the winter flight timetable in late October 2014.

Since 2007, Air China has been a member of the Star Alliance, the world’s largest airline alliance, and with almost 49 million passengers, as measured by intercontinental traffic, is China’s biggest airline.

Top Copyright Photo: TMK Photography/AirlinersGallery.com. Lufthansa’s Boeing 747-430 D-ABVW (msn 29493) climbs away from the runway at Toronto’s Pearson International Airport (YYZ).

Lufthansa:

Air China:

Bottom Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 777-39L ER B-2043 (msn 41441) of Air China approaches the runway at New York’s John F. Kennedy International Airport (JFK).

Boeing reaches a milestone with the 747, delivers the 1,500th 747 built to Lufthansa

Boeing (Chicago and Seattle) has delivered the 1,500th 747 to come off the production line to Lufthansa (Frankfurt). The milestone airplane is a 747-8 Intercontinental, the 14th one that Lufthansa will incorporate into its long-haul fleet.

“Reaching this milestone delivery is a testament to the capabilities of the airplane and our commitment to continuous innovation,” said Eric Lindblad, 747 vice president and general manager, Boeing Commercial Airplanes. “The new 747-8 is delivering on its promise to our customers, and we continue to look at ways to make it even more efficient in the future.”

The 747 is the first widebody airplane in history to reach the 1,500 milestone. Its iconic shape makes it instantly recognizable, and passengers have consistently voted it their favorite airplane to fly.

At a delivery ceremony yesterday (June 28), a special logo commemorating the 1,500th airplane was revealed for the first time on the pictured 747-830 D-ABYP (msn 37839).

“Lufthansa is honored that the 1,500th 747 will fly with the Lufthansa livery,” said Nico Buchholz, executive vice president, Lufthansa Group Fleet Management. “Lufthansa is an important partner and a valued advisor in developing new commercial airplanes with exceptional economical and ecological performance such as the 747-8. The commemorative logo will be a reminder of our relationship with Boeing, now and into the future.”

Lufthansa is the launch customer of the 747-8 Intercontinental and took delivery of its first airplane in April 2012. The airline has 19 747-8 Intercontinentals on order.

The first Boeing 747-100 entered revenue service on January 22, 1970 with Pan Am on the New York–London route.

Lufthansa German Airlines on March 10, 1970 became the first European airline to take delivery of the Boeing 747-100. The first LH 747, 747-130 D-ABYA (msn 19746), was accepted on this historic day. The Jumbo was introduced into revenue service between Frankfurt and New York (JFK) on April 26, 1970. LH has operated a variant of the 747 for over 44 years.

Lufthansa also issued this statement:

Lufthansa’s 14th Boeing 747-8 landed in Frankfurt on Sunday, June 29, at 9.17 a.m. as scheduled. As well as being the 76th Jumbo that Lufthansa has received from the American manufacturer Boeing in Seattle since the 1970s, the aircraft also represents a veritable milestone in aviation history. This aircraft, whose tail number is D-ABYP (“Yankee Papa”), is the 1,500th Jumbo to be built in the world.

‘It’s an honor for Lufthansa that the anniversary Jumbo will fly in the colors of the Lufthansa crane,’ said Nico Buchholz, Head of Group Fleet Management at Deutsche Lufthansa AG. ‘For decades, Lufthansa has been one of the aircraft manufacturer’s closest advisers – a pioneer when it comes to developing new, environmentally friendly and fuel-efficient aircraft,’ added Buchholz at the handover in Seattle. Lufthansa is expecting to receive a total of 19 aircraft of this type, and will therefore be the world’s largest operator of 747-8s among passenger airlines.

The “Dash 8”, as it is also known, has plenty to offer. By using the latest Jumbo, Lufthansa is taking a further step towards having a “three-liter fleet” (per passenger and 100 kilometers). The aircraft is 15 percent more fuel-efficient than its predecessor model and, as a result, its CO2 emissions are around 15 percent lower. The noise footprint of the Boeing 747-8 is 30 percent smaller compared with the older Boeing 747-400. What started as the first training flight with the new Boeing 747 over the mountains east of Seattle in October 1969 went on to become an icon of the Lufthansa fleet, and, indeed, of commercial aviation as a whole.

On March 9, 1970, the then Lufthansa CEO Herbert Culmann took delivery of the first Lufthansa Boeing 747-130 in front of the factory in Everett. The aircraft’s production number was 12 and its Lufthansa registration was D-ABYA. Lufthansa thereby became the second international airline, after Pan Am, and the first European carrier to deploy the Jumbo on scheduled services. The aircraft was host to several major world premières in succession, including the first film shown on board a Jumbo jet. Only twenty months after the maiden flight of the Boeing 747-130, the fourth Lufthansa Jumbo took off on April 2, 1971 as a modified model. Boeing had equipped the 747-200 with larger fuel tanks and a higher take-off weight of 378 tons. This meant that the aircraft had a longer range. Originally intended as a military aircraft, the Jumbo’s career was not limited to carrying passengers. On April 10, 1972, Lufthansa received the world’s first “smiling” Boeing as the launch customer of the cargo version, the Boeing 747-230F. The nose of the aircraft could be opened horizontally, making it possible to load even bulk goods without any problem. On April 19, 1972, the world’s first cargo Jumbo took off, bearing the tail number D-ABYE. This quickly catapulted Lufthansa to number one in airfreight transport.

‘A step towards the 1990s’ is how Lufthansa CEO Heinz Ruhnau described the purchase agreement signed on June 23, 1986 for an initial order of six enhanced Boeing aircraft. Lufthansa had already been involved in the planning of the Boeing 747-100. However, as the first airline to order the “Dash 400” (Boeing 747-400), it now played a key part in the development of the new aircraft, providing many hundreds of suggestions for improvements and more than 20,000 engineer hours. With this aircraft, the modern, digitalized two-man cockpit that Jürgen Weber, the man responsible for aircraft development at Lufthansa Technik in Hamburg at the time and later Chairman of the Executive Board and CEO of Lufthansa AG, and Reinhard Abraham, the former Chief Technical Officer of the Lufthansa Group, had worked to achieve became a reality. Upwards-pointing winglets, new and more economical engines, new materials such as composite materials and aluminium alloys: all of these innovations helped to cut fuel consumption by 24 percent compared with the -200 series.

On 23 May 1989, Lufthansa received the first enhanced Super Jumbo with tail number D-ABVA. The aircraft could cover almost 13,000 kilometers in 16 hours and thus reach nearly every destination in the world. As the new millennium started, the idea was put forth to develop an enhanced version of the Boeing 747-400. And so not only was the Jumbo extended by 5.6 meters, it was also totally redeveloped, including a new wing design and new engines. On May 2, 2012, Lufthansa became the first passenger airline in the world to receive a Boeing 747-8.

Copyright Photo: Bernie Leighton/AirlinersGallery.com. Boeing 747-830 D-ABYP with the special “1500th” emblem prepares to depart from Paine Field near Everett yesterday (June 28) on its delivery flight to Frankfurt.

Boeing 747 Slide Show:

Lufthansa:

Air China is gradually phasing out the Boeing 747-400

Air China (Beijing) is gradually phasing out its aging Boeing 747-400 fleet. The Jumbo is being replaced with newer Boeing 777-300ERs. The fleet is now down to four aircraft. The flag carrier is ending domestic Boeing 747-400 scheduled flights on June 30 according to Airline Route. The last domestic route is the Beijing – Shanghai (Hongqiao).

The carrier will continue to fly the type until October 25 on the following routes:

Beijing – Hong Kong
Beijing – Tokyo (Narita)
Shanghai (Pudong) – Tokyo (Narita)

The Jumbo, subject to change, is expected to then exit the fleet.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-4J6 B-2460 (msn 24348) arrives at Tokyo’s Narita International Airport (NRT).

Air China: