Tag Archives: Bombardier CRJ700 (CL-600-2C10)

Air France to reduce its domestic network

Hop! For Air France Bombardier CRJ700 (CL-600-2C10) F-GRZN (msn 10264) AMS (Ton Storck). Image: 939600.

Air France is planning to cut back its domestic network as a result of stiff competition. The company will reduce its short-haul capacity by 15% by the end of 2021 which could lead to a reduction of up to 465 positions. Here is the full announcement about its French domestic system:

At the Central Social and Economic Works Council (CSEC) held on May 13, strategic guidelines for the company were presented and discussed, as well as their implications in terms of jobs and skills management planning (GPEC): to improve operational performance, offer the highest level of product quality and service to customers, as well as to restore Air France’s competitiveness, including adapting its short-haul activity. The entire company and its employees have been striving for years to ensure that the company adapts to market conditions and the extremely fierce competition in the sector.

Increased competition from the TGV

Over the past five years, Air France’s domestic network has been strongly affected by competition from high-speed train routes, which have increased their capacity throughout the country, reduced journey times and developed a very competitive low-cost offer. The French authorities have ensured that train travel has expanded over the years and has become Air France’s main rival on the domestic network, departing from Paris airports or the French regions, without being subject to taxes or charges that directly target air transport,. The launch of four new high-speed routes in 2016 and 2017 is expected to attract 4.7 million additional passengers by 2020(1) and on routes where high-speed trains connect Paris to the provinces in under two hours, Air France has lost 90% of its market share.

 

The rapid development of low-cost airlines

As well, in recent years low-cost airlines have set up bases at major airports and have gained ground rapidly with aggressive pricing policies and often with the help of public authorities. Unlike Air France, where 90% of staff are based in France, a majority of these airlines have not contributed to developing employment in the regions where they operate, taking advantage of European mobility and basing employees in jurisdictions with lower labour costs.

 

Air France teams have launched several initiatives

Faced with this tenuous situation, Air France teams have fortunately been able to adapt to an increasingly difficult environment. They are behind many innovative commercial initiatives that have improved our offer to meet customer expectations in terms of flight schedules, customer experience, and punctuality, and have enabled us to maintain a 65% market share in the domestic market. However, on some routes the revenue decline could not have been prevented, nor unit costs reduced. As a result, Air France’s financial situation has deteriorated significantly on its domestic network, and in 2018 it posted a loss of €189 million, a sharp decrease compared to 2017 (€96 million). Since 2013, cumulative losses have amounted to €717 million.

Photo: Hop! Air France is phasing out the Hop! brand.

No forced departures

Air France’s jobs and skills management planning (GPEC) for the 2019-2021 period reveals important hiring requirements in numerous sectors of the company, but also overstaffing in the short-haul ground operations activities. Air France also plans to reduce its short-haul capacity in terms of available seat-km (ASK) by 15% by the end of 2021.

Employee union representatives have thus been informed of a planned voluntary departures plan that could concern up to 465 jobs on the domestic network, carried out over a one-year period. This plan will shortly be the subject of a consultation with relevant stakeholders.

There will be no forced departures. This project includes personalized support measures for the staff concerned. The measures will be detailed and negotiated with the labour groups during the consultation.

“Many new talented staff – pilots, flight attendants, mechanics and engineers – will join us in 2019,” said Anne Rigail, CEO of Air France, “to support Air France’s growth, but we also have the responsibility to guarantee an even balance of our activities in certain sectors to secure their long-term viability. This is the idea behind the project presented for the short-haul sector today. We will conduct the consultation process with our labour groups as part of an open and transparent dialogue, and we are committed to supporting all staff who wish to move to a new position or develop their career”

“The French domestic network is intricately linked to the history of Air France,” said Benjamin Smith, CEO of Air France-KLM Group. “It guarantees its regional base, and connects the French regions to the rest of the world by offering several thousand daily connection opportunities. In a highly competitive marketplace, we are all fully engaged in defending a domestic market that is vital for Air France and also more globally for the Air France-KLM Group.”

 

[1] Report on the future of rail transport – February 15, 2018

Top Copyright Photo: Hop! For Air France Bombardier CRJ700 (CL-600-2C10) F-GRZN (msn 10264) AMS (Ton Storck). Image: 939600.

Hop! aircraft slide show:

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SkyWest, Inc. announces a first quarter 2019 profit

American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N710SK (msn 10170) LAX (Michael B. Ing). Image: 946297.

SkyWest, Inc. today reported financial and operating results for Q1 2019, including net income of $88 million, or $1.69 per diluted share, compared to net income of $54 million, or $1.03 per diluted share, for Q1 2018. Adjusted net income in Q1 2019 was $69 million, up 27% from Q1 2018 primarily due to SkyWest’s ongoing fleet transition, as SkyWest has added 43 new aircraft since Q1 2018, and reduced aircraft ownership costs resulting from early lease buyouts executed in early 2019.

Commenting on the results, Chip Childs, Chief Executive Officer and President of SkyWest, said, “This quarter was significant for SkyWest as we move forward as one airline with a smaller, but more efficient footprint.  Our team performed well this quarter through a series of severe weather events.  We are encouraged with our progress and are working together with our 14,000 employees to deliver the best possible product to our partners.”

Financial Highlights
Revenue was $724 million in Q1 2019, down from $783 million in Q1 2018 due to the sale of ExpressJet Airlines (“ExpressJet”) in January 2019. Excluding ExpressJet revenue in both periods, revenue increased to $700 million in Q1 2019 from $622 million in Q1 2018 primarily from the impact of adding 35 new E175 and eight new CRJ900 aircraft since Q1 2018.

Operating expenses were $627 million in Q1 2019, down from $695 million in Q1 2018 due to the sale of ExpressJet. Excluding ExpressJet operating expenses in both periods, operating expenses increased to $599 million in Q1 2019 from $528 million in Q1 2018, primarily from the additional aircraft placed into service, higher labor costs and special item operating expenses in Q1 2019.

The adjusted results for the quarter exclude $24.7 million of pre-tax earnings comprised of the gain on the sale of ExpressJet of $46.6 million (pre-tax) and a $21.9 million (pre-tax) expense primarily due to a non-cash write-off of aircraft manufacturer part credits forfeited to settle future lease return obligations.

Operational Update
Flying contract extension
SkyWest announced today that it has agreed to a multi-year extension with American Airlines on 38 CRJ700 aircraft (top).  These aircraft previously had contract maturities scheduled to begin in late 2019.  SkyWest also expects to add two used CRJ700 aircraft to the American contract in Q2 2019 under a multi-year term.

Lease agreement with a third-party for 29 CRJ700 aircraft
SkyWest also announced today that it has agreed to lease 29 CRJ700 aircraft to a third-party for a ten-year term, subject to the finalization of their flying contract.  SkyWest anticipates the aircraft will be placed under lease in increments from mid-2019 to mid-2020.

Delivery schedule under previously announced agreements
E175 aircraft to be financed by SkyWest and operated for Delta Air Lines and Alaska Airlines:

  • Took delivery of one aircraft during Q1 2019 (Delta contract)
  • Scheduled to take delivery of four aircraft in Q2 2019 (Delta contract)
  • Scheduled to take delivery of four aircraft in mid-2020 (Delta contract)
  • Scheduled to take delivery of three aircraft in 2021 (Alaska contract)

SkyWest expects to remove a used CRJ900 aircraft from its contract with Delta as each of these ERJ175 aircraft is placed into service with Delta (total of nine CRJ900 expected removals).  As previously announced, SkyWest anticipates leasing five CRJ900s to a third party under a six-year term and returning four CRJ900s to a lessor following removal of service with Delta.

CRJ900 aircraft to be financed by Delta and operated by SkyWest for Delta:

  • Took delivery of three aircraft during Q1 2019
  • Scheduled to take delivery of four aircraft in mid-2019
  • Scheduled to take delivery of eight aircraft in 2020

SkyWest expects to remove a used CRJ700 from its contract with Delta as each of these CRJ900 financed by Delta is placed into service.  As previously announced, SkyWest anticipates transitioning the CRJ700s removed under this arrangement with Delta to an agreement with American.

Joint venture with Regional One
SkyWest entered into a joint venture with Regional One during Q1 2019.  The primary purpose of the joint venture is to lease spare engines to third parties.  SkyWest anticipates initiating transactions through the joint venture beginning in Q2 2019, including the transfer of 14 engines into the joint venture.

Previously announced transactions that closed in Q1 2019
In January 2019, SkyWest completed the previously announced sale of ExpressJet to ManaAir, LLC.  The transaction was completed in two parts, through an asset sale and stock sale, for an aggregate sales price of $77 million.  SkyWest loaned $26 million to ManaAir in conjunction with the closing.

SkyWest also completed the previously-announced early leveraged lease buyout on 16 CRJ700s and 36 CRJ200s.  SkyWest used $110 million in Q1 2019 to acquire these aircraft off lease.  SkyWest assumed no debt on these aircraft.

Capital and Liquidity
SkyWest had $544 million in cash and marketable securities at March 31, 2019, down from $689 million at December 31, 2018. During the first quarter of 2019, SkyWest:

  • Used $110 million to acquire 52 CRJ aircraft under an early lease buyout
  • Used $90 million to acquire 16 used CRJ700s previously operated and leased by a SkyWest entity. SkyWest anticipates leasing the majority of airframes and engines to third parties and using a portion of aircraft components as spare parts.
  • Received $51 million net cash from the sale of ExpressJet
  • Used $25 million to repurchase stock, of which $21 million was purchased under SkyWest’s $250 million share repurchase program approved during Q1 2019
  • Used $4 million toward the purchase of one E175 aircraft
  • Used $28 million for other capital investments, primarily related to spare engines, aircraft parts and maintenance assets

Total debt at March 31, 2019 was $3.1 billion, down from $3.2 billion as of December 31, 2018.   Q1 2019 ending debt balance included debt issued for one E175 aircraft acquired during the quarter, offset by principal payments.

Top Copyright Photo (all others by the airline): American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N710SK (msn 10170) LAX (Michael B. Ing). Image: 946297.

American Eagle-SkyWest aircraft slide show:

Alaska SkyWest route map:

American Eagle route map:

Delta Connection route map:

United Express route map:

United to add two United Express routes from Denver, will add Prescott, AZ

United Express-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N755SK (msn 10220) LAS (Bruce Drum). Image: 104425.

United Airlines is planning to add two new domestic United Express routes from the Denver hub. Both routes will be operated by SkyWest Airlines:

Mammoth Lake, CA – daily CRJ700 effective December 19, 2018

Monterey, CA – daily CRJ200 effective October 4, 2018

In other news, United will also add United Express service from Prescott, ZA on August 29, 2018 to both Denver and Los Angeles via SkyWest.

Finally, United will also offer Boeing 737-9 MAX 9 service to Hawaii:

Los Angeles – Kahului effective August 21, 2018

Los Angeles – Kona effective February 14, 2019

San Francisco – Kahului effective March 9, 2019

San Francisco – Kona effective March 8, 2019

Top Copyright Photo: United Express-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N755SK (msn 10220) LAS (Bruce Drum). Image: 104425.

United Express-SkyWest aircraft slide show:

Route Map: Routes flown for United Airlines:

United to add two seasonal Express routes from Los Angeles

United Express-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N793SK (msn 10295) LAX (Michael B. Ing). Image: 941712.

United Airlines is adding two seasonal United Express routes from Los Angeles  this winter. According to Airline Route, SkyWest Airlines will operate a daily Los Angeles – Mammoth Lake route starting on December 1, 2018.

Additionally SkyWest will operate a daily connection between Los Angeles and Sun Valley starting on December 19, 2018.

Top Copyright Photo (all other by SkyWest Airlines): United Express-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N793SK (msn 10295) LAX (Michael B. Ing). Image: 941712.

United Express-SkyWest aircraft slide show:

United Express routes operated by SkyWest Airlines:

GoJet Airlines announces a new pilot bonus package

United Express-GoJet Airlines Bombardier CRJ700 (CL-600-2C10) N169GJ (msn 10273) YYZ (Jay Selman). Image: 403779.

GoJet Airlines has announced a new bonus package to attract the most qualified pilot candidates to its team.  Now with up to $56,000 in bonuses for new hire First Officers, total compensation for GoJet pilots is among the highest in the regional airline industry.

The new bonus package includes a $51,000 bonus for new hire First Officers, as well as a $5,000 Air Carrier Experience Match for current and qualified pilots from any scheduled US or international air carrier.  Pilots eligible for this program may carry over longevity from their previous carrier at a rate of 1 to 1, and are also eligible for up to six months of early seniority.

GoJet programs include customized options for military pilots, helicopter pilots, student pilots, and flight instructors.  Furthermore, as the only regional airline with a direct pathway to Spirit Airlines, select GoJet plots can transition to a First Officer position at Spirit in as little as two years.  Additionally, GoJet’s referral program allows GoJet pilots to earn a $10,000 bonus for each successful pilot candidate they refer to the company.

“Our upgrade time is one of the fastest in the industry, our partnerships are unique, and we have the absolute best company culture,” GoJet Chief Operating Officer, Terry Basham said. “When pilots join the GoJet team, they launch their careers in a productive environment and could advance to a major airline in record time.”

GoJet Airlines is a regional carrier operating as United Express and Delta Connection. GoJet flies the Bombardier CRJ700 and CRJ900, two of the youngest and most technologically advanced regional jets in the industry. GoJet serves over 4.5 million passengers annually, with more than 240 daily flights providing service to over 60 destinations. GoJet is headquartered in St. Louis, Missouri, and has crew bases in Chicago, Denver, Detroit, Raleigh-Durham and St. Louis.

Top Copyright Photo (all others by GoJet): United Express-GoJet Airlines Bombardier CRJ700 (CL-600-2C10) N169GJ (msn 10273) YYZ (Jay Selman). Image: 403779.

United Express-GoJet aircraft slide show:

Route Map:

SA Express hopes to resume operations

SA Express (South African Express Airways) Bombardier CRJ700 (CL-600-2C10) ZS-NBF (msn 10028) JNB (Paul Denton). Image: 923007.

SA Express was forced to suspend operations on May 24, 2018 after its AOC was suspended. At that time the company issued this statement:

Following the South African Civil Aviation Authority’s (SACAA) decision to temporarily suspend SA Express’ Air Operator’s Certificate (AOC), as well as its certification as an Approved Maintenance Organisation (AMO), the airline has since made contingency plans to accommodate passengers affected by this grounding.

SA Express has been in contact with its strategic partners including SAA, to ensure that all our passengers have been accommodated, either on alternative carriers or in hotels where we are not able to get them on to flights last night.

“We regret the inconvenience this frustrating situation has caused our passengers. We assure you that we are doing everything in our power to resolve the situation urgently,” says Matsietsi Mokholo, Acting CEO of SA Express.

Passengers scheduled to depart, between 06h00 and 09h00, are advised to proceed to SA Express counters for information pertaining to the contingency plans made for these flights, or alternatively call 0800 214 774 and +27 11 978 6699.

The updated re-accommodation schedule will be made available after 11h00, and SAA, Mango and Airlink will have designated counters to assist SA Express passengers.

All cargo has subsequently been cleared at all stations, including Kimberly, Bloemfontein and Richards Bay, which has been redirected to Durban. Any queries pertaining to cargo, should be taken up with the relevant airports directly. Until this situation has been resolved, SA Express will unfortunately not accept any requests to transport cargo.

The Facts – What you need to know

  • Passengers on SA coded tickets and SA code share will be accommodated with international and regional connecting passengers on first priority.
  • Should delays arise all passengers will, in accordance to international standards, be accommodated for up to 48hrs while we make every effort to get you on the next flight.
  • We will, in accordance with our compensation policy, compensate all passengers for meals and refreshments (excl. alcohol), accommodation and transport costs applicable.

As an update, the airline is now hoping to resume operations on June 23, 2018 according to its acting CEO. The airline is also experiencing staff shortages which may also hamper its return. For now, all aircraft are grounded.

Copyright Photo (all others by SA Express): SA Express (South African Express Airways) Bombardier CRJ700 (CL-600-2C10) ZS-NBF (msn 10028) JNB (Paul Denton). Image: 923007.

SA Express aircrafts slide show:

Route Map:

Cal Jet suspends operations as it reorganizes with new aircraft

Cal Jet - Elite Airways Bombardier CRJ700 (CL-600-2C10) N78EA (msn 10103) CRQ (James Helbock). Image: 940079.

Cal Jet (Elite Airways) (Carlsbad/Oceanside) suspended the Carlsbad – Las Vegas route on April 18, 2018 as it reorganizes. The airline is pledging it will be back and will resume operations to Las Vegas and add new aircraft for new service to Oakland and Phoenix by the end of June. It is also planning a new wave of expansion to San Jose, Cabo and Sacramento by late July.

The airline issued this statement:

Copyright Photo: Cal Jet – Elite Airways Bombardier CRJ700 (CL-600-2C10) N78EA (msn 10103) CRQ (James Helbock). Image: 940079.