Tag Archives: Boeing 767300

Hawaiian Airlines launches a new route to Sapporo, Japan

Hawaiian Airlines (Honolulu) yesterday (October 30) launched its inaugural flight from Honolulu to Sapporo, Japan, and restored nonstop service between the two cities that had been discontinued by other carriers nine years earlier.

Passengers of the inaugural flight enjoyed a festive island-style send-off at Honolulu International Airport before boarding, featuring Hawaiian music and hula, a traditional Hawaiian blessing, presentation of fresh flower lei, and a special performance honoring the Japanese culture (see above).

The capital city of the island of Hokkaido, Japan’s second-largest and northernmost island, Sapporo is Japan’s fourth-largest city with a population of 1.9 million. Sapporo is renowned for its ski resorts – the city hosted the 1972 Winter Olympics – and the world-famous Sapporo Snow Festival, which annually attracts millions of visitors each February to see its spectacular snow and ice sculptures.

Hawaiian’s Honolulu-Sapporo service is adding 41,000 new air seats to the market annually and the benefit to Hawai’i’s visitor industry will be significant, according to the Hawai’i Tourism Authority.

Hawaiian’s Flight HA 441 departs Honolulu International Airport on Tuesday, Thursday, and Saturday at 2:45 p.m., crosses the international dateline, and arrives at Sapporo’s New Chitose Airport at 7:00 p.m. the following day.

The return flight HA 442 departs Sapporo on Wednesday, Friday, and Sunday at 9:30 p.m., crosses the international dateline, and arrives in Honolulu at 9:55 a.m. the same day.

Hawaiian will operate its Honolulu-Sapporo flights offering the comfort and roominess of its wide-body, twin-aisle Boeing 767-300 ER aircraft (see below) seating 264 passengers, with 18 in Business Class and 246 in the Main Cabin.

Travelers will enjoy a customized presentation of Hawaiian’s signature inflight hospitality program, combining its celebration of the islands’ culture, people, and Aloha Spirit with entertainment options and special onboard products designed for the Japanese traveler.

Sapporo is the fourth city in Japan that Hawaiian has introduced nonstop service in the past two years following Tokyo (November 2010), Osaka (July 2011), and Fukuoka (April 2012).

Top Copyright Photo: Guests of Hawaiian Airlines’ inaugural flight today from Honolulu to Sapporo, Japan were treated to hula and Hawaiian music before boarding. Photo Credit: Anthony Consillio. (PRNewsFoto/Hawaiian Airlines)

Hawaiian Airlines:

Bottom Copyright Photo: Bruce Drum. Boeing 767-33A ER N581HA (msn 28141) taxies to the runway at Los Angeles International Airport.

United Continental Holdings reports third quarter net income of $520 million excluding special charges, only $6 million with the charges

United Continental Holdings, Inc. (United Airlines) (Chicago) reported third-quarter 2012 net income of $520 million, or $1.35 per diluted share, excluding $514 million of net special charges. Including special charges, UAL reported third-quarter 2012 net income of $6 million, or $0.02 per diluted share.

UAL third-quarter consolidated passenger revenue decreased 2.6 percent year-over-year. Third-quarter consolidated passenger revenue per available seat mile (PRASM) decreased 1.3 percent compared to the same period in 2011.
Consolidated unit costs (CASM) holding fuel rate and profit sharing constant and excluding special charges and third-party business expense increased 2.5 percent year-over-year on a consolidated capacity reduction of 1.4 percent. Third-quarter consolidated CASM increased 6.6 percent year-over-year.
UAL ended the third quarter with $7.2 billion in unrestricted liquidity.

Third-Quarter Revenue and Capacity

For the third quarter of 2012, total revenue was $9.9 billion, a decrease of 2.6 percent year-over-year. Third-quarter consolidated passenger revenue decreased 2.6 percent to $8.8 billion, compared to the same period in 2011.

Consolidated revenue passenger miles (RPMs) decreased 1.5 percent on a consolidated capacity (available seat miles) decrease of 1.4 percent year-over-year for the third quarter, resulting in a third-quarter consolidated load factor of 85.2 percent.

Consolidated yield for the third quarter of 2012 decreased 1.2 percent year-over-year. Third-quarter 2012 consolidated PRASM decreased 1.3 percent compared to the same period in 2011.

Mainline RPMs in the third quarter of 2012 decreased 1.9 percent on a mainline capacity decrease of 1.4 percent year-over-year, resulting in a third-quarter mainline load factor of 85.7 percent. Mainline yield for the third quarter of 2012 decreased 1.5 percent compared to the same period in 2011. Third-quarter 2012 mainline PRASM decreased 2.0 percent year-over-year.

Passenger revenue for the third quarter of 2012 and period-to-period comparisons of related statistics for UAL’s mainline and regional operations are as follows:

	3Q 2012 Passenger Revenue (millions)	Passenger Revenue vs. 3Q 2011	PRASM vs. 3Q 2011	Yield vs. 3Q 2011	Available Seat Miles vs. 3Q 2011

Domestic	$3,325	(5.8%)	(4.2%)	(2.6%)	(1.7%)

Atlantic	1,591	(8.0%)	(4.5%)	(3.7%)	(3.7%)
Pacific	1,450	11.0%	9.9%	7.2%	1.0%
Latin America	627	(6.8%)	(8.3%)	(9.4%)	1.6%
International	3,668	(1.1%)	0.0%	(0.7%)	(1.1%)

Mainline	6,993	(3.4%)	(2.0%)	(1.5%)	(1.4%)
Regional	1,781	0.5%	1.6%	(0.9%)	(1.1%)

Consolidated	$8,774	(2.6%)	(1.3%)	(1.2%)	(1.4%)

Year-over-year cargo and other revenue in the third quarter of 2012 decreased 2.3 percent, or $27 million, to $1.1 billion.

Third-Quarter Costs

Total operating expenses, including special charges, increased $473 million, or 5.1 percent, in the third quarter compared to the same period of 2011. Third-quarter 2012 operating expenses, excluding fuel, profit sharing, special charges and third-party business expense, increased $92 million, or 1.7 percent, year-over-year. Third-party business expense was $55 million in the third quarter.

Both consolidated and mainline CASM, excluding special charges and third-party business expense, increased 2.3 percent in the third quarter of 2012 compared to the same period of 2011. Third-quarter consolidated and mainline CASM, including special charges, increased 6.6 and 7.5 percent year-over-year, respectively.

In the third quarter, consolidated and mainline CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 2.5 percent and 2.0 percent, respectively, compared to the results for the same period of 2011.

Third-Quarter Liquidity and Return on Invested Capital

UAL ended the third quarter with $7.2 billion in unrestricted liquidity, including $500 million of undrawn commitments under a revolving credit facility. During the third quarter, the company had gross capital expenditures of $412 million. The company made debt and principal payments under capital lease of $487 million including $104 million of prepayments in the third quarter. The company’s return on invested capital for the 12 months ended Sept. 30, 2012, was 9.3 percent, below the company’s goal of a 10 percent return over the business cycle.

Third-Quarter 2012 Events

United recorded a U.S. Department of Transportation domestic on-time arrival rate of 72.4 percent and a system completion factor of 98.6 percent for the quarter. For international flights, United recorded an on-time arrival rate of 71.0 percent. The on-time arrival rates are based on flights arriving within 14 minutes of scheduled arrival time.
On Aug. 2, the company reached an agreement in principle for a joint collective bargaining agreement with the Air Line Pilots Association representing pilots from the company’s United and Continental subsidiaries. Flight attendants from the company’s Continental and Continental Micronesia subsidiaries ratified new labor agreements, and the company began the joint collective bargaining process with the Association of Flight Attendants, which represents all flight attendants. The company and the International Association of Machinists announced that they would engage in expedited joint collective bargaining agreement negotiations for fleet service employees, passenger service employees and certain other work groups. The company is also in the process of commencing joint negotiations with the International Brotherhood of Teamsters, which represents maintenance technicians.
United employees earned cash incentive payments totaling $5 million for exceeding 80 percent domestic on-time arrival performance for the month of September.
United took delivery of its first Boeing 787. United is the first North American carrier to take delivery of the 787, and the aircraft is the first of five new Dreamliners the airline expects to receive this year from its total order for 50 of the aircraft.
United announced routes for its Boeing 787 aircraft, in addition to the previously announced service from its Denver hub to Tokyo Narita, including service between its Houston hub and Lagos, Nigeria, and from its Los Angeles hub to Tokyo Narita and Shanghai. The airline will also operate Dreamliner service from its Houston hub to Amsterdam and London Heathrow on a temporary basis.
The company announced an order to purchase 150 narrowbody Boeing 737 aircraft, including 100 Boeing 737 MAX 9 aircraft and 50 Boeing 737-900ER aircraft for delivery between 2013 and 2022. These new aircraft will allow United to replace older, less-efficient aircraft to reduce fuel and operating costs, enhance the customer experience and maximize network opportunities.
During the quarter, United launched service from Newark to Istanbul. In addition, the carrier launched service from San Francisco to Raleigh-Durham, N.C., from Denver to Shreveport, La., and from Newark to Columbia, S.C. United also announced 12 new routes during the quarter, including flights from its San Francisco hub to Taipei, Taiwan, and Paris, as well as from Washington, D.C. to San Salvador, from Cleveland to Nashville and from Chicago to Monterrey, Mexico, Thunder Bay, Canada, and Nassau, Bahamas.
Emphasizing the importance of service and reliability, United awarded new Ford vehicles to 11 employees for their perfect attendance. Thousands of employees were eligible, and United selected the winners during a random drawing.
United now has 180 airplanes featuring DIRECTV®, offering customers more live television access than any other airline in the world.
United Economy Plus seating is now on 90 percent of United’s entire mainline fleet, and the company continues to install flat-bed seats in premium cabins on its international fleet. United now has 159 aircraft featuring flat-bed seats, more than any other U.S. carrier.
United launched its MileagePlus Digital Media Store, a first-of-its-kind in the airline industry, giving MileagePlus members the opportunity to use miles for music tracks, albums and movies.

United Airlines:

Hawaiian reports a third quarter net profit of $40.6 million

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), reported third quarter 2012 adjusted net income of $40.6 million or $0.77 per diluted share, reflecting economic fuel expense, and GAAP net income for the third quarter of 2012 of $45.5 million, or $0.86 per diluted share.

Financial Highlights:

Adjusted net income, reflecting economic fuel expense, increase of 35.2% year-over-year and GAAP net income increase of 77.6% year-over-year.
Adjusted operating margin of 13.4%, reflecting economic fuel expense, and operating margin of 13.6%
Adjusted net income margin of 7.4%, reflecting economic fuel expense, and net income margin of 8.3%.
Operating cost per available seat mile (CASM) excluding fuel decrease of 6.8%.
Unrestricted cash and cash equivalents of $433.5 million.

The Company reported operating income of $74.9 million in the third quarter of 2012, compared with operating income of $60.9 million in the same period in 2011.

Operating revenue was $549.3 million, a 20.5% increase compared to the same period in 2011. Capacity for the third quarter of 2012 increased 28.0% year-over-year to 4.1 billion available seat miles, resulting in operating revenue per available seat mile (ASM) of 13.56 cents, down 5.8% from the same period in 2011. Passenger yield (passenger revenue per revenue passenger mile) decreased 3.6% year-over-year to 14.77 cents, resulting in a year-over-year decrease in passenger revenue per ASM of 5.7% to 12.30 cents. Selected Statistical Data is included in Table 2.

Total operating expenses increased 20.1% year-over-year to $474.4 million. CASM decreased 6.1% year-over-year to 11.71 cents. Excluding fuel, CASM decreased 6.8% year-over-year to 7.62 cents. Reconciliations of GAAP and non-GAAP financial measures are included in Tables 2 and 6.

Aircraft fuel costs increased 21.9% year-over-year to $165.8 million and represented 34.9% of total operating expenses. Hawaiian’s average cost per gallon of jet fuel decreased 4.1% year-over-year to $3.04 (including taxes and delivery). The financial impact of hedging activities is included in nonoperating income (expense), and as such is not reflected in fuel expense.

The Company believes that economic fuel expense is the best measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus (gains)/losses realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period. For the three months ended September 30, 2012, economic fuel expense was $167.4 million ($3.07 per gallon), compared with $138.3 million ($3.22 per gallon) in the prior-year period. Analyses of economic fuel expense for the third quarter 2012 and 2011 and pro-forma net income (loss) and diluted net income (loss) per share reflecting economic fuel expense are included in Tables 3 and 4.

Nonoperating income (expense) totaled ($1.1) million, compared with ($13.6) million in the same period in 2011. The Company recognized gains on its fuel hedging activities, reflected in nonoperating income (expense), totaling $6.5 million compared with losses of $9.7 millionduring the same period in 2011.

A summary of the Company’s fuel derivatives contracts as of October 17, 2012 is included as Table 5.

As of September 30, 2012, the Company had:

Unrestricted cash and cash equivalents of $433.5 million.
Available borrowing capacity of $67.4 million under Hawaiian’s Revolving Credit Facility.
Outstanding debt and capital lease obligations of approximately $674 million consisting of the following:
- $251.2 million outstanding under secured loan agreements to finance a portion of the purchase price for four Airbus A330-200 aircraft.
- $174.6 million in secured loan agreements for a portion of the purchase price for 15 previously leased Boeing 717-200 aircraft.
- $108.2 million in capital lease obligations for an Airbus A330-200 aircraft and two Boeing 717-200 aircraft.
- $68.0 million outstanding under floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
- $71.8 million outstanding of Convertible Senior Notes.

Copyright Photo: Bruce Drum. Boeing 767-33A ER N589HA (msn 33422) taxies to the runway at Seattle/Tacoma bound for Honolulu.

Hawaiian Airlines:

Air Canada to form a new leisure group with combination of new low-cost airline subsidiary and Air Canada Vacations

Air Canada (Montreal) has unveiled plans to form an integrated leisure group, combining the activities of its tour operator business, Air Canada Vacations, with its new low-cost leisure airline to launch in 2013. In addition, the airline announced the appointment of Michael Friisdahl as President and Chief Executive Officer to lead its new leisure group which will be a wholly owned subsidiary of Air Canada.

The new low-cost leisure carrier will commence service in June 2013 with two Boeing 767-300 ER aircraft and two Airbus A319 aircraft that will be released from Air Canada’s mainline fleet. It will serve popular holiday destinations in Europe and the Caribbean that are either currently underserved, or that do not generate adequate profitability with Air Canada’s existing cost structure. At launch, the leisure carrier will assume select Air Canada leisure services and will also operate certain new destinations not currently operated by Air Canada. Further details on the leisure airline’s summer 2013 program, schedule and product offering will be communicated later this fall with Air Canada’s 2013 schedule. The carrier’s plans are subject to obtaining the necessary regulatory approvals.

The leisure carrier will increase its fleet as Air Canada starts to take delivery of new Boeing 787 Dreamliner aircraft in 2014, thereby freeing up aircraft for transfer to the leisure carrier. As this occurs and subject to commercial demand, the leisure carrier may operate up to 20 Boeing 767-300 ER aircraft and 30 Airbus A319 aircraft, for a total of 50 aircraft.

On September 20, 2012, Air Canada announced that it will hire more than 900 employees over the next 12 months to meet its planned workforce requirements at the main airline. In addition, 200 new jobs will be created for flight attendants and pilots at the new low-cost leisure carrier.

Copyright Photo: Bruce Drum. Boeing 767-300s will be freed up with the arrival of the 787 Dreamliners. Boeing 767-3U0 ER C-GHPF (msn 26206) completes its final approach into Miami International Airport (MIA).

Air Canada:

British Airways and Japan Airlines to start their joint venture on October 1

British Airways (London) and JAL-Japan Airlines (Tokyo) will start their new joint venture on October 1.

British Airways issued the following statement:

British Airways and Japan Airlines (JAL) will begin a joint business agreement with the two airlines sharing revenue on applicable flights between Europe and Japan.

The joint business, which starts on October 1, 2012, will benefit customers by providing better links between Europe and Japan, greater choice of flights to more destinations, enhanced frequent flyer benefits and the potential to launch new routes.

British Airways and JAL, both members of the oneworld® alliance, have been forging ever closer ties in their evolution to the joint business. Earlier this month, JAL and British Airways began offering codeshare flights between Tokyo (Haneda and Narita) and London (Heathrow). The joint business will now see the two airlines co-operating on all non-stop flights operated by JAL or British Airways between Japan and Europe. This will not only include the 19 weekly services between the UK and Japan, but also JAL’s services to Paris and Frankfurt. This gives customers the flexibility of using a combination of JAL and British Airways flights and aligned fares on their journey to and from Japan and Europe, significantly increasing their options.

JAL and British Airways will also be improving flight transfers for customers by enhancing and expanding the codeshare network beyond their respective hub cities. JAL customers will, be able to book seats to the new codeshare destinations of Belfast, Helsinki, Frankfurt, and Gothenburg. British Airways will extend its reach to more destinations in Japan by codesharing on flights to Kansai, Okayama, Izumo, Okinawa, Nagasaki, Hiroshima and Kagoshima. Further expansion of codeshare arrangements are expected in the future. The websites of the two airlines will also be updated to enable customers to make bookings and check-in online, and access the flight information they need, irrespective of the carrier they are flying on.

Customers participating in JAL and British Airways’ loyalty programs will continue to enjoy reciprocal benefits as customers of oneworld, but top tier members of the respective loyalty schemes will now have the opportunity to earn bonus points on applicable flights on either airline.

In other news, British Airways will start nonstop London (Gatwick)-Alicante Boeing 737-400 service service on March 31, 2013 per Airline Route.

Top Copyright Photo: Michael B. Ing. Boeing 767-336 ER G-BNWD (msn 24336) climbs away from the London (Heathrow) hub.

British Airways:

JAL-Japan Airlines:

Bottom Copyright Photo: Ken Petersen. Boeing 767-346 ER JA615J (msn 33850) in the special Samantha Thavasa motif lands at the Tokyo (Narita) hub.

LAN Airlines orders 10 additional 767-300 ER/F Blended Winglet systems

Aviation Partners Boeing (Seattle) announced today that LAN Airlines (Santiago) has ordered 10 additional Blended Winglet Systems for Boeing 767-300 ER passenger and freighter aircraft. This order brings LAN’s order total to 57 Blended Winglet systems for the Boeing 767-300 ER/F fleet making it the largest APB customer for this model.

Blended Winglet technology installed on a Boeing 767-300 ER/F reduces fuel burn by up to 500,000 gallons per aircraft per year while reducing carbon dioxide emissions by over 5,000 tons per year. Blended Winglets can also extend the range of a Boeing 767-300E R/F by as much as 320 nautical miles, or increase the payload of the aircraft by as much as 16,000 pounds.

LAN has purchased 10 new Blended Winglet systems from APB and selected Delta Tech Ops and Mexicana MRO to perform these modifications promoting the growth of both MRO’s, especially Mexicana, which is now capable of carrying out winglet modifications. Mexicana also becomes the newest Maintenance Repair and Overhaul facility to accomplish the Boeing 767-300 ER/F Blended Winglet installation. Mexicana had hoped to restart scheduled passenger operations.

Nearly 5,000 Blended Winglet Systems are now in service on Boeing 737s, 757s and 767s with more than 200 airlines worldwide. Since certification in 2009, APB has taken orders (firm and options) for 389 Boeing 767-300 ER/F Blended Winglet systems. APB estimates that Blended Winglets have saved airlines worldwide more than 3.3 billion gallons of jet fuel to-date.

Copyright Photo: Bruce Drum. Brand new Boeing 767-316 ER CC-BDH (msn 41748) at Paine Field near Everett will soon be receiving its set of Aviation Partners Blended Winglets.

LAN Airlines (Chile):

TAM Airlines to retire the Boeing 767-300 on December 17

TAM Linhas Aereas (TAM Airlines) (Sao Paulo) is planning to retire its last Boeing 767-300 on December 17 according to Airline Route. The venerable wide body is being replaced by newer Airbus A330-200s.

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Caribbean Airlines takes delivery of its second Boeing 767-300 ER

Caribbean Airlines (Port of Spain) on August 31, 2012 accepted this former LAN Airlines Boeing 767-316 ER, its second copy of the type. The pictured 767-316 ER is now appropriately registered as 9Y-LHR (msn 27597, ex CC-CDP) in salute of London Heathrow Airport, served for many years by BWIA.

Copyright Photo: Nigel Steele. 9Y-LHR is pictured arriving at the POS base on August 31. Like the first (9Y-LGW), it also carries the special “Celebrating 50 Years of Independence” emblem.

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Delta and AeroMexico to jointly build a heavy maintenance facility in Guadalajara

Delta Air Lines Inc. (Atlanta) and AeroMexico (Mexico City) plan to begin construction of a jointly operated aircraft maintenance, repair and overhaul (MRO) center at the Intercontinental Airport in Queretaro, next to that State’s Aerospace Park.

As part of a Memorandum of Understanding (MOU) and continuation of their commercial alliance, the carriers will invest equal amounts in a project to move work currently being done at the Guadalajara International Airport and expand MRO capabilities for their own aircraft and other carriers. The new facility’s heavy maintenance capacity will allow for up to seven aircraft to be serviced simultaneously.

According to both carriers, “this project represents one of the most important investments in aviation infrastructure in Mexico in history and proves that the joint efforts between the private and public sectors benefit the country’s economic growth.”

Delta Air Lines acquired a 4.17 percent stake in Grupo Aeromexico in June of this year.

It is unclear if any heavy maintenance will be moved from Atlanta to Guadalajara.

Top Copyright Photo: Michael B. Ing. Boeing 767-332 N139DL (msn 25984) with a United Way logo approaches for landing at Los Angeles International Airport.

Delta:

AeroMexico:

Caribbean Airlines takes delivery of its first Boeing 767-300

Caribbean Airlines (Port of Spain) yesterday (August 28) took delivery of its first (of two) Boeing 767-300. The former LAN Airlines (Santiago) Boeing 767-316 ER CC-CEB (msn 26327) is now registered appropriately as 9Y-LGW. The wide-body airliner was greeted with the traditional water cannon salute at POS on its arrival. Caribbean is planning to restore London (Gatwick) service from both Barbados and Trinidad with this new type.

The pictured 9Y-LGW also carries a special “Trinidad and Tobago – Celebrating 50 Years of Independence” logo.

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