Tag Archives: Bombardier DHC-8-402 (Q400)

Alaska Air Group returns two Q400 to service due to the 737 MAX 9 delays

Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N447QX (msn 4364) SEA (Michael B. Ing). Image: 947263.

The Alaska Air Group has announced in its filing that two of the three Boeing 737-MAX 9 aircraft that were originally scheduled for delivery in 2019 have been shifted to 2020 in light of the recent MAX grounding, based on the best estimate of the expected delivery dates.

Two Bombardier Q400 aircraft (above) that were previously removed from the operating fleet will be returning to revenue service. The expect changes are expected to occur in late 2019.

The Group also updated and outlined its fleet plans in the filing below:

The Alaska Air Groups, Inc. quarterly report to the United States Securities and Exchange Commission:

At June 30, 2019, the Company had operating leases for 10 Boeing 737 (B737), 62 Airbus, and 9 Bombardier Q400 aircraft. Additionally, the Company operates 32 Embraer 175 (E175) aircraft through its capacity purchase arrangement with SkyWest Airlines, Inc. (SkyWest). Remaining lease terms for these aircraft extend up to 12 years, with options to extend, subject to negotiation at the end of the term. As extension is not certain, and rates are highly likely to be renegotiated, the extended term is only capitalized when it is reasonably determinable. While aircraft rent is primarily fixed, certain leases contain rental adjustments throughout the lease term which would be recognized as variable expense as incurred. Variable lease expense for aircraft was $1 million and $2 million for the three and six months ended June 30, 2019, respectively.

Capacity purchase agreements with aircraft (CPA aircraft)

At June 30, 2019, Alaska had CPAs with three carriers, including the Company’s wholly-owned subsidiary, Horizon. Horizon sells 100% of its capacity under a CPA with Alaska. Alaska also has CPAs with SkyWest to fly certain routes in the Lower 48 and Canada, and with Peninsula Aviation Services, Inc., (PenAir) to fly certain routes in the state of Alaska. Under these agreements, Alaska pays the carriers an amount which is based on a determination of their cost of operating those flights and other factors intended to approximate market rates for those services. As Horizon is a wholly-owned subsidiary, intercompany leases between Alaska and Horizon have not been recognized under the standard. The agreement with PenAir does not contain a leasing arrangement, resulting in no asset or liability recognized.

Remaining lease terms for CPA aircraft range from 8 years to 11 years. Financial arrangements of the CPAs include a fixed component, representing the costs to operate each aircraft and is capitalized under the new lease accounting standard. CPAs also include variable rent based on actual levels of flying, which is expensed as incurred. Variable lease expense for CPA aircraft for the three and six months ended June 30, 2019 was not material.

As of June 30, 2019, the Company has one scheduled lease delivery of an A321neo aircraft remaining in 2019, valued at $52 million. We also had three scheduled lease deliveries of E175 aircraft in 2021 to be operated by SkyWest. Subsequent to June 30, 2019, the Company canceled these aircraft deliveries through an amendment to the capacity purchase agreement. All future lease contracts have remaining non-cancelable lease terms ranging from 2019 to 2033.

Aircraft purchase commitments include non-cancelable contractual commitments for aircraft and engines.

As of June 30, 2019, the Company had commitments to purchase 32 Boeing 737 MAX 9 aircraft, with deliveries in the remainder of 2019 through 2023. Future minimum contractual payments for these aircraft have been updated to reflect the most current anticipated delivery timing for Boeing 737 MAX 9 aircraft, which has been delayed as a result of the grounding order mandated by the FAA on March 13, 2019.

The Company also has commitments to purchase five E175 aircraft with deliveries in the remainder of 2019 through 2021 and has cancelable purchase commitments for 30 Airbus A320neo aircraft with deliveries from 2023 through 2025. In addition, the Company has options to purchase 37 B737 MAX aircraft from 2021 through 2024 and 30 E175 aircraft from 2021 through 2023. The Company also has the option to increase capacity flown by SkyWest with eight additional E175 aircraft with deliveries from 2021 to 2022.

Aircraft Commitments

As of June 30, 2019, we have firm orders to purchase or lease 41 aircraft. We also have cancelable purchase commitments for 30 Airbus A320neo with deliveries from 2023 through 2025. We could incur a loss of pre-delivery payments and credits as a cancellation fee. We also have options to acquire 37 B737 aircraft with deliveries from 2021 through 2024 and 30 E175 aircraft with deliveries from 2021 through 2023. In addition to the 32 E175 aircraft currently operated by SkyWest in our regional fleet, we have options in future periods to add regional capacity by E175 aircraft.

The following table summarizes expected fleet activity by year as of June 30, 2019, and are subject to change:

Top Copyright Photo: Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N447QX (msn 4364) SEA (Michael B. Ing). Image: 947263.

Alaska Horizon aircraft slide show:


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Austrian Airlines to add six Airbus A320s, will phase out its DHC-8-402s

Austrian Airlines Bombardier DHC-8-402 (Q400) OE-LGH (msn 4075) BSL (Paul Bannwarth). Image: 947071.

Austrian Airlines has made this announcement:

The fleet development announced in January 2019 is taking shape now: Austrian Airlines has now secured six additional A320 aircraft. The first of these jets is scheduled for delivery in August. Within the next few days, it will already receive the red-white-red Austrian color scheme in Jacksonville, FL.

 

A total of ten additional jets are to replace the 18 DHC-8-400 turboprop aircraft by 2021.

Austrian will thus increase its Airbus fleet from 36 to 46 aircraft.

As of June 30, 2019, the entire Austrian Airlines fleet consisted of 82 aircraft.

Four A320 aircraft from Avianca Brasil, two from Juneyao

Four of the six additional A320 jets are leased from Aviation Capital and previously flew at Avianca Brasil. In part, these aircraft are already being subject to the necessary delivery check.

The first A320 plane is expected to be transferred to Austrian Airlines in the middle of August. Additional planes will be supplied at the end of August as well as in September and October. Following the necessary modifications and adaptations, the first aircraft should be put into operation on Austrian Airline’s behalf in December of this year. Austrian Airlines will take possession of two other Airbus jets purchased from CDB Aviation, which are currently operated by Star Alliance Connecting Partner Juneyao.


In 2019 Austrian Airlines has already decommissioned two DHC-8-400 aircraft. The hand over of a further DHC-8-400 turboprop is planned this year. Nine other Dash turboprops are scheduled to be phased out from the Austrian Airlines fleet in the course of 2020, the remaining six will follow in 2021.

Details on the six A320:

Registration   Year                     Type          Engine             Delivery (planned)   Prior/current Operator
OE-LZA         September 2007    A320-214   CFM56-5B4/P    January 2020          Juneyao
OE-LZB         October 2007        A320-214   CFM56-5B4/P    January 2020          Juneyao
OE-LZC         September 2012    A320-214   CFM56-5B4/3    August 2019           Avianca Brasil
OE-LZD         October 2012        A320-214   CFM56-5B4/3    August 2019           Avianca Brasil
OE-LZE         September 2013    A320-214   CFM56-5B4/3    September 2019      Avianca Brasil
OE-LZF         November 2013     A320-214   CFM56-5B4/3    October 2019          Avianca Brasil

Top Copyright Photo: Austrian Airlines Bombardier DHC-8-402 (Q400) OE-LGH (msn 4075) BSL (Paul Bannwarth). Image: 947071.

Austrian Airlines aircraft slide show:

European Commission approves of the acquisition of Flybe by Connect Airways

Flyby's last and soon to be short-lived livery

The European Commission has issued this decision:

The European Commission has approved, under the EU Merger Regulation, the acquisition of UK regional air carrier Flybe by Connect Airways, a consortium by Virgin Atlantic, Stobart Aviation and Cyrus. The decision is conditional on full compliance with commitments offered by Connect Airways.

This decision concerns the proposed acquisition by Connect Airways of (i) Flybe, (ii) Propius Holdings Ltd (“Propius”, Stobart Aviation’s aircraft leasing business) and (iii) Stobart Air Unlimited Company (“Stobart Air”, Stobart Aviation’s operating airline business).

Connect Airways is a consortium founded by Virgin Atlantic, Stobart Aviation and Cyrus. Through the consortium, the three companies will jointly control Flybe, Propius and Stobart Air following the merger.

The Commission’s merger investigation

The Commission investigated the impact of the proposed transaction on the market for air transport of passengers on routes from British airports to other European airports as well as some intra-UK routes.

The Commission’s investigation found that the transaction, as initially notified, would have led to quasi-monopolies on two direct European routes, namely Birmingham – Amsterdam and Birmingham – Paris.

This quasi-monopoly situation would result from Air France-KLM acquiring indirect control over Flybe, via its joint control over Virgin Atlantic. The Commission approved the joint acquisition of Virgin Atlantic by Air France-KLM, Delta and Virgin group in February 2019. The Commission also noted that entry of competitors into these routes would be difficult, considering that both Amsterdam Schiphol and Paris Charles de Gaulle airports are very congested airports.

The Commission also investigated the effects of the transaction on several other markets, such as passenger air transport to/from Amsterdam Schiphol airport, cargo air transport services, ground-handling services or airport infrastructure services but did not find competition concerns in any of these.

The proposed remedies

To address the competition concerns identified by the Commission with regard to the Birmingham – Amsterdam and Birmingham – Paris routes, Connect Airways offered a set of commitments.

Connect Airways committed to the release of five daily slot pairs at Amsterdam Schiphol airport and three daily slot pairs at Paris Charles de Gaulle airport. Under the proposed commitments, these slots will be released to competing airlines that want to fly the Birmingham – Amsterdam and Birmingham – Paris routes.

The commitments fully address the competition concerns identified by the Commission regarding Connect Airways’ acquisition of Flybe. The Commission therefore concluded that the proposed transaction, as modified by the final commitments, would no longer raise competition concerns. This decision is conditional upon full compliance with the commitments.

The Commission’s derogation decision of February 21, 2019

Under the EU Merger Regulation, companies have the obligation not to implement a notifiable transaction before it has been declared compatible with the common market (Article 7(1) of the EU Merger Regulation). This serves to avoid that competition could be harmed beyond repair before the Commission has taken its decision. At the same time, EU merger rules enable the Commission to give a temporary approval for certain parts of a transaction (on the basis of Article 7(3) of the Merger Regulation) in a way that does not harm effective competition, and in order to avoid negative effects for consumers.

On 21 February 2019, the Commission granted Connect Airways such a derogation. As a result, Connect Airways was allowed to acquire Flybe’s shares prior to the merger clearance, subject to strict conditions, in particular related to voting rights. The derogation decision helped prevent flight cancellations to the detriment of consumers and helped avoid staff layoffs, while the merger review was ongoing.

Companies and products

Flybe, based in the UK, is a British regional airline with a focus on short-haul, point-to-point flights. It currently operates 190 routes serving 12 countries from 73 departure points in the United Kingdom and other European countries.

Cyrus, based in the US, is an investment adviser and an investor in public and private airlines.

Stobart Group, based in Guernsey, is active in aviation and infrastructure markets, including (i) operating regional airline Stobart Air and (ii) developing London Southend Airport.

Virgin Atlantic, is the ultimate holding company of international passenger airline Virgin Atlantic Airways and international tour operator Virgin Holidays. Virgin Atlantic is currently controlled by Virgin Group and Delta Air Lines. On 12 February 2019, the Commission cleared unconditionally the proposed acquisition of joint control by Virgin Group, Delta Air Lines and Air France-KLM over Virgin Atlantic.

Air France-KLM, based in France, is the holding company of Air France, the French national carrier airline and KLM, the Dutch national carrier airline. The company provides passenger air transport services, cargo air transport services and maintenance, repair and overhaul services.

Connect Airways issued this statement:

Connect Airways Limited (Connect Airways) has received merger control clearance from the European Commission for its acquisition of Flybe Limited (Flybe), Propius Holdings Ltd (Propius), and its investment in Stobart Air Unlimited Company (Stobart Air), securing Flybe’s long-term future and providing more choice for customers across the UK.

With Connect Airways taking over full management control of the business, Mark Anderson (CEO, Connect Airways) and with the leadership teams from Flybe and Stobart Air will now focus on plans to grow Flybe’s regional network, as well as expanding Stobart Air’s successful franchise business.

Connect Airways will offer significant benefits for customers:

  • A foundation to secure Flybe’s long-term future, building on the strong financial backing and expertise of  Virgin Atlantic, Stobart Group and Cyrus
  • More choice for customers through improved connectivity between UK regional airports and Virgin Atlantic’s extensive long-haul network, particularly at London Heathrow and Manchester Airports
  • An enhanced customer experience in line with the Virgin brand, which Connect Airways will use in due course
  • A leading franchise-flying business, via its investment in Stobart Air’s market-leading proposition

Work is also underway to develop an exciting new brand and customer proposition, which will be announced in due course.

Top Copyright Photo: This will be Flybe’s last livery which was very limited and now short-lived. Flybe (British European 2nd) Bombardier DHC-8-402 (Q400) G-JECP (msn 4136) SOU (Antony J. Best). Image: 946881.

Flybe aircraft slide show:

 

Air Canada to launch daily nonstop, year-round Calgary-Terrace service

Air Canada Express-Jazz Aviation Bombardier DHC-8-402 (Q400) C-GJZK (msn 4499) YYC (Chris Sands). Image: 946862.

Air Canada has announced it will launch daily nonstop, year-round flights between Calgary and Terrace beginning October 28, 2019, which will complement the airline’s five times daily flights between Vancouver and Terrace.

Air Canada is also increasing capacity on key regional routes across Western Canada this winter with its flexible fleet including continued deployment of the popular Bombardier Q400 aircraft.

Increased services across Western Canada regional markets this fall and winter peak compared to last year include:

 

Route

Frequencies & Aircraft*

Capacity Increase

Calgary-Terrace

Daily with Q400s

new

Vancouver-Terrace

5 x daily with Q400s

+30%

Vancouver-Prince Rupert

2 x daily with Q400s

+56%

Vancouver-Smithers

2 x daily with Q400s

+56%

Vancouver-Fort St. John

4 x daily with Q400s

+20%

Vancouver-Kamloops

5 x daily with Q400s

+56%

Vancouver-Penticton

3 x daily with Q400s

+56%

Vancouver-Comox

3 x daily with Q400s

+56%

Vancouver-Sandspit

Daily with Q400s

+56%

Vancouver-Saskatoon

3 daily with CRJ900s offering Business and Economy Class

+44%

Vancouver-Regina

3 daily with CRJ900s offering Business and Economy Class

+44%

Vancouver-Whitehorse

2 x daily with A319s/A320s offering Business and Economy Class

+24%

Calgary-Kamloops

2 x daily with Q400s

+56%

Calgary-Winnipeg

3 x daily with A319s/CRJ900s offering Business and Economy Class

+40%

Edmonton-Fort McMurray

3 x daily with Q400s

+70%

Edmonton-Grande Prairie

2 x daily with Q400s

+56%

*Detailed schedules are available at aircanada.com

Top Copyright Photo: Air Canada Express-Jazz Aviation Bombardier DHC-8-402 (Q400) C-GJZK (msn 4499) YYC (Chris Sands). Image: 946862.

Air Canada Express-Jazz aircraft slide show:

De Havilland Aircraft of Canada delivers first Dash 8-400 aircraft

Airline Color Scheme - Introduced 2015

De Havilland Aircraft of Canada Limited announced today the delivery of its first Dash 8-400 aircraft following the completion of the transition of the Dash 8/Q Series aircraft program from Bombardier Inc. to De Havilland Canada on June 1, 2019.

The aircraft was delivered to Qazaq Air JSC of Kazakhstan (top) and will become the fifth Dash 8-400 turboprop in the airline’s fleet.

De Havilland Aircraft of Canada Limited has obtained all regulatory approvals from Transport Canada and relevant competition authorities to support the manufacture and aftermarket support for the Dash 8/Q Series aircraft.

Top Copyright Photo (all others by de Havilland Canada): Qazaq Air Bombardier DHC-8-402 (Q400) P4-NUR (msn 4494) ALA (Rob Finlayson). Image: 934126.

Qazaq Air aircraft slide show:

LGW to replace its Bombardier Q400s with Embraer E190s

Eurowings (LGW) Bombardier DHC-8-402 (Q400) D-ABQC (msn 4231) ZRH (Andi Hiltl). Image: 943756.

LGW has released this statement (translated from German):

Luftfahrtgesellschaft Walter (LGW) is renewing its fleet. From December 2019, the regional airline will phase in the first Embraer E190 aircraft. The new Embraer E190s will replace the existing Bombardier DHC-8-402 (Q400) fleet. This will take about two years, until autumn 2021.

The replacement will harmonize the fleet within the group. WDL Aviation, the time-freight subsidiary based at Cologne/Bonn Airport, is currently also being equipped with aircraft from the Embraer E190 series. This will create synergies within the group.

LGW will continue flying as a wet lease provider for Eurowings in the longer term.

Zeitfracht Group took over LGW from the Lufthansa Group only at the beginning of April.

Top Copyright Photo: Eurowings (LGW) Bombardier DHC-8-402 (Q400) D-ABQC (msn 4231) ZRH (Andi Hiltl). Image: 943756.

Eurowings-LGW aircraft slide show:

WestJet ratifies five-year agreement with WestJet Encore pilots

WestJet Encore Bombardier DHC-8-402 (Q400) C-GWEU (msn 4493) YYZ (Jay Selman). Image: 403935.

WestJet has announced that 92 percent of WestJet Encore pilots represented by the Airline Pilots Association (ALPA) voted in favor of a five-year agreement. The vote represents 90 percent of the 505 WestJet Encore pilots.

The agreement starts January 1, 2019 and expires on January 1, 2024.

Top Copyright Photo (all others by the airline): WestJet Encore Bombardier DHC-8-402 (Q400) C-GWEU (msn 4493) YYZ (Jay Selman). Image: 403935.

WestJet Encore aircraft slide show: