Tag Archives: Boeing

OpenSkies to launch nonstop New York JFK-Paris Orly flights on March 31

OpenSkies (subsidiary of British Airways) (Paris-Orly) has announced a new daily route, between New York (JFK) and Paris (Orly) beginning on March 31, 2013. This new route compliments the current Newark-Paris Orly service and brings OpenSkies to three daily services between New York area and the Paris area.

The new flight departs New York JFK at 9:00 pm (2100) and arrives at Paris Orly at 10:35 am (1035) local time. Customers have a choice of three cabins, recently introduced in celebration of OpenSkies’ fourth anniversary:

Biz Bed, with a completely flat bed offering the best night’s sleep
Prem Plus, a unique class, offering leather seats in a 2 x 2 configuration
Eco, an economy cabin offering comfort and personalized service

All customers are offered a personal iPad loaded with more than 70 hours of entertainment, including movies, TV shows and games.

At JFK’s Terminal 7, customers traveling in Biz Bed cabin and Executive Club Gold and Silver card members will have access to the British Airways Galleries lounge. This lounge offers a luxurious, private space where passengers can relax in the Elemis(R) spa with complimentary treatments and showers and enjoy snacks and beverages or work before their flight. In addition, Biz Bed passengers can take advantage of pre-flight dining, allowing them to maximize their sleep on board.

OpenSkies is the only airline that flies to the Paris Orly West Terminal nonstop from the U.S. This terminal provides OpenSkies passengers with numerous advantages, such as close proximity to the center of Paris, as well as a more extensive choice of destinations, flights and connections within France. OpenSkies passengers are also able to benefit from a smoother journey through the airport, with the departure gates being located just past the security checks. Premium passengers also have access to Iberia’s VIP lounge, both spacious and recently refurbished.

Members of the British Airways Executive Club loyalty program will benefit from their status while flying with OpenSkies. With each flight, Executive Club members accumulate Avios points that can be converted into flight tickets or upgrades.

OpenSkies Schedule

New York Newark	Paris Orly	18h45	8h40 (+1 day)
New York Newark	Paris Orly	20h25	10h (+1 day)
New York JFK	Paris Orly	21h	10h35 (+1 day)
Paris Orly	New York Newark	10h45	13h20
Paris Orly	New York Newark	13h40	16h15
Paris Orly	New York JFK	14h55	17h25

Copyright Photo: Brian McDonough. Boeing 757-236 G-BPEK (msn 25808) takes off from Dulles International Airport near Washington.

OpenSkies:

Four AirTran Airways cities convert to Southwest Airlines cities with new routes on April 14, 2013

Southwest Airlines (Dallas) announced today future service details affecting four AirTran Airways cities that will convert to Southwest Airlines service in the Spring of 2013.

Beginning April 14, 2013, Southwest Airlines nonstop service will be offered between:

Charlotte and Baltimore/Washington, Chicago (Midway), Houston (Hobby), and Orlando
Flint and Baltimore/Washington, Orlando, and Tampa Bay
Portland, Maine and Baltimore/Washington
Rochester and Baltimore/Washington, Chicago (Midway), Orlando, and Tampa Bay

AirTran service in these cities will end the previous day, April 13, 2013.

In addition to seasonal and other itinerary changes across the 97 destinations served by both carriers, AirTran’s international footprint grows with the new schedule to include new, daily service beginning April 14, 2013, between Punta Cana in the Dominican Republic and Baltimore/Washington, subject to applicable governmental approval.

Additional New Service on Southwest Airlines beginning April 14, 2013:

One daily nonstop flight between Boston Logan and Kansas City
One daily nonstop flight between Houston (Hobby) and Pittsburgh

Copyright Photo: Bruce Drum. Boeing 737-7H4 N459WN (msn 32497) of Southwest Airlines taxies to the active runway at Seattle/Tacoma International Airport (SEA).

AirTran Airways:

Southwest Airlines:

Turkish Airlines plans to order 15 additional Boeing 777-300 ERs

Turkish Airlines (Istanbul) plans to order 15 additional Boeing 777-300 ERs by 2017 with five options according to a report by Reuters.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing. Boeing 777-3F2 ER TC-JJP (msn 40797) completes its final approach into Los Angeles International Airport.

Turkish Airlines:

JAL to start Tokyo Narita-Helsinki service on February 25, commences new 787 routes to Singapore

Japan Airlines (JAL) (Tokyo) has announced February 25, 2013 as the launch date for its inaugural service between Tokyo (Narita) and Helsinki.

Flight schedule of new Tokyo – Helsinki service, commencing on February 25, 2013:

Flight Number

Route

Dep. Time

Arr. Time

Aircraft

Days of Operation

JL413

Narita – Helsinki

11:45

15:05

787-8　Business　Economy

Mo, Tu, Th, Sa from February 25, 2013

Daily service planned for first half of FY2013.

JL414

Helsinki – Narita

17:25

10:15 + 1

・The above schedule is subject to government approval.

・The above timings may change after March 30, 2013 following the standard industry switch from winter to summer schedules.

・The increase in frequency to a daily service is subject to the delivery schedule of the 787-8.

In addition, JAL started Tokyo (Haneda)-Singapore and Tokyo (Narita)-Singapore 787 service on October 14. Both routes will be offered three days a week becoming daily service on October 28.

Copyright Photo: Akira Uekawa. The first Boeing 787 Dreamliner logojet. 787-8 JA828J (msn 38438) in the special “Sora wo Tobu” (Flying Sky) motif was also introduced on October 14. Designed by Studio Ghibil, the logojet features the art of seven children. JA828J is pictured pushing back from gate 114 of the International Terminal at Tokyo (Haneda) on a late night departure bound for Singapore as flight JL 35.

Hot New Photos:

JAL-Japan Airlines:

Thomson Airways to introduce the Boeing 787-8 Dreamliner on May 1 to Sanford and Cancun

Thomson Airways (London-Luton) is planning to introduce the new Boeing 787-8 Dreamliner on May 1, 2013 on the East Midlands-Cancun and London (Gatwick)-Sanford (near Orlando) routes subject to change.

Here is the complete introduction schedule: CLICK HERE

Image: Thomson Airways.

Thomson Airways:

Gol files a new request to operate regular scheduled flights to the United States

Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aereos) (Sao Paulo) has announced that it has submitted to the Brazilian Civil Aviation Agency (ANAC) a formal request to operate regular flights in routes connecting Brazil to the United States, with one stop in Santo Domingo. These flights will be operated by Next Generation Boeing 737 aircraft.

They are expected to begin at the end of the year. If approved, the plan will consist of two daily flights between Brazil and the United States with a stop in Santo Domingo. One flight will depart from São Paulo (Guarulhos International Airport) and the other from Rio de Janeiro (Galeão International Airport). The flights will arrive in Santo Domingo (Las Americas Airport), where passengers will be transferred to flights to their final destinations, Orlando and Miami.

Gol is awaiting all the necessary authorizations before disclosing any details about the new operation, including information about fares, services and products.

Copyright Photo: Bernardo Andrade. Boeing 737-8EH PR-GTY (msn 34273) prepares to taxi to the runway at Santos Dumont Airport in Rio de Janeiro.

Gol Transportes Aereos:

Southwest Airlines reports net income of $16 million in the third quarter

Southwest Airlines Company (Dallas) today reported its third quarter 2012 results. Third quarter 2012 net income was $16 million, or $.02 per diluted share, which included $81 million (net) of unfavorable special items. This compared to a net loss of $140 million, or $.18 loss per diluted share, in third quarter 2011, which included unfavorable special items totaling $262 million (net). Excluding special items, third quarter 2012 net income was $97 million, or $.13 per diluted share, compared to $122 million, or $.15 per diluted share, in third quarter 2011. This exceeded the First Call consensus estimate of $.12 per diluted share. Operating income for third quarter 2012 was $51 million, compared to $225 million in third quarter 2011. Excluding special items, operating income was $208 million for third quarter 2012, compared to $285 million for the same period last year. Additional information regarding special items is included in this release and in the accompanying reconciliation tables.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “Our third quarter 2012 net income was $97 million, and operating income was $208 million, each excluding special items. Our third quarter 2012 passenger revenues, unit revenues, and load factor were all third-quarter records and meaningful accomplishments; however, we need sustained revenue momentum to achieve our return on invested capital target. And, that is a priority. While in line with the domestic industry, our third quarter 2012 year-over-year unit revenue growth was more sluggish than planned due to weaker demand, particularly in September. While the economy remains a significant concern, we are encouraged, thus far, by October’s bookings and revenue trends. Thus far in October 2012, passenger unit revenues are running ahead of the comparable year ago period by approximately four percent. For next year, we are excited about planned initiatives including the first phase of our new revenue management system.

“We have significant transformation work underway on five key strategic initiatives, and I am proud of our People and their results. The integration of AirTran into Southwest is our top priority and much progress was made in third quarter. We have converted nine AirTran aircraft to the Southwest livery. AirTran’s airport facilities at Seattle and Des Moines have been converted to Southwest; Key West, Florida will be converted next month; and Branson, Missouri is scheduled for March 2013. Our April 2013 schedule, to be published next week, will reflect four more AirTran city conversions at Charlotte, North Carolina; Flint, Michigan; Portland, Maine; and Rochester, New York. During third quarter 2012, AirTran ceased operations at six cities, while Southwest launched new service to Dayton, Akron-Canton, and Ronald Reagan Washington National Airport, which began the integration of AirTran in those cities. We remain on track to launch connection of the two airlines’ networks early next year and significantly optimize the combined networks compared to third quarter 2012. Seniority list integrations for seven of the eight impacted unions have been resolved. We produced approximately $110 million in pre-tax synergies in the first nine months of 2012, and we plan for $400 million in pre-tax synergies in 2013 (excluding acquisition and integration expenses). I am very pleased with the AirTran integration results, thus far, and anticipate significant financial performance improvement from next year’s planned actions.

“Our operating costs grew in the third quarter, but much of the growth was investment related. In particular, we are in the early stages of restructuring and retrofitting our fleet to improve our unit costs and long-term financial performance. This ‘fleet modernization’ effort is one of our strategic initiatives, and it, too, is expected to drive significant financial benefits beginning in 2013. We have retrofitted 147 Southwest 737-700s with our updated cabin interior and plan to complete all 372 -700 retrofits in first half 2013. AirTran’s -700s are receiving the updated interior as the aircraft are converted to the Southwest livery. We have added 26 737-800s to our fleet, with eight more deliveries scheduled for this year. Our near-term plans call for keeping the fleet relatively flat taking into account our aircraft deliveries, 737 Classic retirements, and leases/subleases to Delta. Overall, we anticipate our fleet modernization efforts will significantly benefit pre-tax results in excess of $700 million, annually, once fully implemented in 2015.

“Third quarter 2012 economic fuel costs were $3.16 per gallon, which was in line with third quarter 2011. Crude oil and jet fuel prices have soared over the last several months, and our fourth quarter 2012 economic fuel costs are expected to hit an all-time high $3.45 per gallon (based on market prices as of October 15, 2012). This is disappointing, especially given the weak economy, and we will need to more aggressively control costs in the next year.

“Our liquidity and balance sheet remain strong. As of yesterday, total cash on hand and short-term investments were $3.5 billion, in addition to a fully available unsecured revolving credit line of $800 million. Operating cash flow for the first nine months of this year was approximately $1.8 billion, resulting in strong free cash flow* of nearly $900 million. During that time, we continued to return cash to our Shareholders with the repurchase of approximately 37 million shares of common stock for approximately $325 million and dividends totaling $22 million. We also repaid $517 million of debt and capital lease obligations without refinancing. Our debt levels are modest with debt-to-capital leverage near 40 percent, including off balance sheet aircraft leases. We remain committed to our goals of enhancing Shareholder value, preserving our financial strength, and achieving our 15 percent pre-tax return on invested capital.”

Financial Results and Outlook

AirTran Airways, Inc. became a wholly-owned subsidiary of the Company on May 2, 2011. Results discussed in this release and provided in the accompanying unaudited Condensed Consolidated Financial Statements and Comparative Consolidated Operating Statistics include the results of operations and cash flows for AirTran beginning May 2, 2011, including the impact of purchase accounting. Year-to-date 2011 results do not include AirTran’s results prior to the acquisition date. However, the Company believes the analysis of specified financial results on a “combined basis” provides more meaningful year-over-year comparability. Year-to-date 2011 financial information presented on a “combined basis” is the sum of the historical financial results of the Company and AirTran for periods prior to the acquisition date, but includes the impact of purchase accounting beginning May 2, 2011. Supplemental financial information presented on a “combined basis” and the accompanying reconciliations are included in this release.

The Company’s total operating revenues in third quarter 2012 of $4.3 billion were comparable to third quarter 2011. Operating unit revenues increased 0.6 percent from third quarter 2011. Based on traffic and revenue trends thus far, the Company currently expects a solid year-over-year increase in operating unit revenues in fourth quarter 2012.

Total third quarter 2012 operating expenses were $4.3 billion, compared to $4.1 billion in third quarter 2011. Excluding special items in both periods, third quarter 2012 operating expenses increased 1.9 percent from third quarter 2011.

Third quarter 2012 economic fuel costs were $3.16 per gallon, including $.03 per gallon in unfavorable cash settlements for fuel derivative contracts, compared to $3.18 per gallon in third quarter 2011, including $.02 per gallon in unfavorable cash settlements. Based on market prices as of October 15, 2012, the Company expects fourth quarter 2012 economic fuel costs to be approximately $3.45 per gallon, including $.09 per gallon in unfavorable cash settlements for fuel derivative contracts. Fourth quarter 2012 premium costs, recorded in Other (gains) losses, are currently estimated to be approximately $3 million, compared to premium costs of $14 million in fourth quarter 2011 and $36 million in fourth quarter 2010. As of October 15, 2012, the fair market value of the Company’s hedge portfolio through 2016 was a net asset of approximately $196 million, compared to a net asset of approximately $133 million at September 30, 2012, and a net liability of $140 million at June 30, 2012. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.

Excluding fuel, profitsharing, and special items in both periods, third quarter 2012 unit costs increased 6.2 percent from third quarter 2011. Based on current cost trends, the Company expects a similar year-over-year increase in its fourth quarter 2012 unit costs, excluding fuel, profitsharing and special items in both periods. Third quarter 2012 profitsharing expense was $29 million, compared to $36 million in third quarter last year.

Operating income for third quarter 2012 was $51 million, compared to $225 million in third quarter 2011. Excluding special items, operating income was $208 million for third quarter 2012, compared to $285 million in third quarter 2011. The Company incurred $145 million in special charges (before taxes) during third quarter 2012 primarily associated with the Boeing 717 lease/sublease agreement with Delta Air Lines, Inc. and Boeing Capital Corp. Cumulative costs associated with the acquisition and integration of AirTran, as of September 30, 2012, totaled $310 million (before taxes). The Company expects total acquisition and integration costs will be approximately $550 million.

Other expenses for third quarter 2012 were $18 million, compared to $451 million in third quarter 2011. This $433 million decrease primarily resulted from $10 million in other gains recognized in third quarter 2012, compared to $405 million in other losses recognized in third quarter 2011. In both periods, these gains and losses primarily resulted from unrealized mark to market gains/losses associated with a portion of the Company’s fuel hedging portfolio, which are special items. Excluding these special items, other losses were $18 million in third quarter 2012, compared to $36 million in third quarter 2011, primarily attributable to the premium costs associated with the Company’s fuel derivative contracts. Net interest expense declined to $28 million in third quarter 2012, compared to $46 million in third quarter 2011, primarily as a result of the Company’s repayment of its $400 million notes in December 2011 and the redemption of its $385 million notes in March 2012.

Total operating revenues for the nine months ended September 30, 2012 increased 11.8 percent year-over-year to $12.9 billion, while total operating expenses increased 12.5 percent year-over-year to $12.4 billion, resulting in operating income in the nine months ended September 30, 2012 of $532 million, versus $546 million for the same period last year. Excluding special items, operating income was $702 million for the nine months ended September 30, 2012, compared to $672 million for the same period last year. Excluding special items and compared to combined results for the same period last year, total operating revenues for the nine months ended September 30, 2012 increased 3.4 percent, while total operating expenses increased 3.3 percent, resulting in a 5.2 percent increase in operating income for the nine months ended September 30, 2012.

Net income for the nine months ended September 30, 2012 was $343 million, or $.45 per diluted share, compared to $26 million, or $.03 per diluted share, for the same period last year. Excluding special items, net income for the nine months ended September 30, 2012 was $352 million, or $.46 per diluted share, compared to $263 million, or $.34 per diluted share, for the same period last year.

The Company’s return on invested capital (before taxes and excluding special items) was approximately seven percent for the twelve months ended September 30, 2012. Additional information regarding pre-tax return on invested capital is included in the accompanying reconciliation tables.

Copyright Photo: Tony Storck. Boeing 737-7H4 N912WN (msn 36621) of Southwest Airlines arrives at Baltimore/Washington. The airliner wears special “Tinker Bell – Powered by Pixie Dust” markings.

Southwest Airlines:

UTair Aviation selects Row 44 for inflight connectivity

UTair Aviation (Khanty-Mansiysk) has signed a contract with Row 44 for its inflight connectivity. Row 44 issued the following statement:

Row 44, the leading provider of inflight WiFi and device-based entertainment for airlines around the world, is pleased to announce that UTair Aviation, one of the leading airlines in Russia, has selected Row 44 to provide inflight connectivity services.

With the Row 44 platform, UTair will provide its passengers with the ability to enjoy high-speed, reliable Internet access, as well as premium entertainment content, including a selection of live TV channels, delivered directly to their WiFi-enabled devices.

Installations are expected to begin on UTair’s aircraft in the 3rd quarter of 2013.

UTair is the second airline in Russia to choose Row 44, and to take advantage of the company’s growing global satellite network. As of first quarter 2013, Row 44 will operate services across North America, the Atlantic Ocean, Continental Europe, North Africa, the Middle East, South Africa and Russia. Row 44 has also expanded its corporate and network operations to Moscow to support business growth in the Russia and CIS region.

UTair:

Jet2 announces three new destinations from Glasgow

Jet2 (Jet2.com) (Leeds/Bradford) is adding three new destinations from Glasgow for the next summer season. The three new destinations will include Murcia (Spain), which will take off every Monday and Friday from May 24, 2013. Flights to the Eastern Med’s Croatian resort, Pula, will start on June 18, 2013. Finally, the airline will operate weekly flights to Menorca starting on May 25, 2013. Jet2 will fly to 19 destinations from Glasgow in the summer of 2013.

Jet2:

AMR Corporation reports a third quarter net profit of $110 million, AA to hire 1,500 new flight attendants

AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc. (Dallas/Fort Worth), today reported a third quarter net profit of $110 million, excluding reorganization items and special charges – a $272 million improvement compared to the prior year period. In the third quarter of 2012, AMR incurred a net loss of $238 million compared to a net loss of $162 million in the same period of 2011.

AMR reported record third quarter consolidated revenue of $6.4 billion, up 0.8 percent compared to the prior year period, on 2.3 percent less capacity than in the third quarter of 2011. Consolidated passenger revenue per available seat mile (unit revenue) grew 4.3 percent compared to the third quarter of 2011, and mainline passenger unit revenue increased 4.5 percent.

Consolidated passenger yield, representing average fares paid, increased 3.5 percent year-over-year in the third quarter of 2012, and mainline passenger yield increased 3.7 percent.
Mainline capacity, or total available seat miles, in the third quarter of 2012 decreased 2.5 percent compared to the same period in 2011.
American’s third quarter 2012 mainline load factor, or the percentage of total seats filled, was 85.5 percent – a record for any quarter in American’s history.

The company’s revenue performance was driven by year-over-year yield improvement and a record high consolidated load factor of 84.7 percent. Domestic unit revenue improved 3.8 percent in the third quarter versus the same period last year and, for the third consecutive quarter, the company saw unit revenue increases across all five of its hubs. Growth in yields on connecting traffic and increased load factors in the premium cabins contributed to the solid revenue performance in the Domestic entity.

International unit revenue increased 5.3 percent in the third quarter, driven by increased load factors across all entities, and improved yield performance. Unit revenue performance in the Pacific entity was strong, up 15.9 percent, driven by increased demand for the premium cabins and greater revenues from Asia point-of-sale. The Latin American entity posted a 4.0 percent unit revenue increase in the third quarter of 2012, including yield improvements in Mexico and Central and South America. The growing strength of American’s enhanced network, together with coordinated selling efforts with joint business partners British Airways and Iberia over the Atlantic, helped drive trans-Atlantic unit revenue improvement of 2.9 percent versus the prior year, despite slower sales around the Summer Olympics, and a weaker economic environment in Europe in the quarter.

The third quarter 2012 results include $348 million in special charges and reorganization items.

Of that amount, $211 million is related to special charges, primarily associated with employee severance-related costs.
The company recognized $137 million in reorganization items resulting from certain of its direct and indirect U.S. subsidiaries’ voluntary petitions for reorganization under Chapter 11 on Nov. 29, 2011. These items primarily result from estimated claims associated with restructuring the financing arrangements for certain aircraft and professional fees, offset by a pension curtailment credit for prior service costs.

In the third quarter, as part of the company’s fleet renewal efforts, American took delivery of seven Boeing 737-800s, for a total of 19 737s in the first nine months of the year, with another nine 737s scheduled to be delivered in the fourth quarter of 2012. These aircraft will improve the customer experience and provide a 35 percent reduction in fuel cost per seat versus MD-80 aircraft.

Furthermore, during the quarter, American announced plans to be the only airline to offer three-class service and the first to offer fully lie-flat First and Business Class seats on transcontinental flights with its Airbus A321 transcontinental aircraft. All new narrowbodies from the Airbus 320 family delivered beginning in the third quarter of 2013 and the Boeing 737-800 aircraft delivered beginning in the fourth quarter of 2013 are expected to offer in-seat entertainment, inflight Wi-Fi, individual 110-volt universal AC power outlets and USB jacks at every seat, in addition to Main Cabin Extra seating.

American is in the midst of a significant renewal and transformation of its fleet, including 59 aircraft slated for delivery in 2013. American is taking significant steps to improve its overall competitive position and expects to have the youngest and most fuel-efficient fleet among its U.S. airline peers by 2017.

In other news, American Airlines today announced plans to bring more than 1,500 new flight attendants onboard over the next year. American will begin the process of recruitment and hiring in November, with the first new-hire class beginning training in January 2013. The overwhelming response by current flight attendants to the company’s recent voluntary separation options, combined with an aggressive training schedule during the transition to the newly established flight attendant contract, led to the ability to welcome new flight attendants to American. This is an exciting step forward and an opportunity for American to look for candidates to join the current team and help deliver the best onboard experience and represent the new American.

American Airlines: