Tag Archives: Business

Finnair and Marimekko launch a design collaboration, the first “Marimekko A340” is launched

Finnair (Helsinki) and Finnish design house Marimekko are teaming up to enhance the air travel experience with a new design partnership. From spring 2013 all Finnair aircraft will feature a Marimekko for Finnair collection of textiles and tableware, featuring Marimekko’s classic patterns. The Marimekko for Finnair collection is specially designed to add a light and fresh visual and tactile dimension to the onboard experience, while lightening the airline’s carbon footprint as well.

Two of Finnair’s long-haul aircraft will also wear livery based on Marimekko designs. ย An Airbus A340-300 (A340-313X OH-LQD) featuring ย Maija Isola’s iconic Unikko floral print from 1964 is already operating between Helsinki and Finnair’s Asian destinations, and it will be followed by another aircraft in Marimekko livery in spring 2013. OH-LQD was unveiled on October 21 at Helsinki.

Marimekko is a Finnish textile and clothing design company renowned first and foremost for its original prints and colors. The company designs and manufactures high-quality household goods ranging from interior decoration textiles to tableware as well as clothing, bags, and other accessories. When Marimekko was founded in 1951, its unprecedented printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2011, sales of the company’s brands were some EUR 170 million with net sales of EUR 77 million. At the end of the year, there were 90 Marimekko stores. The key markets are North America,ย Northern Europeย and the Asia-Pacific region. The Group has about 500 employees. Marimekko’s shares are quoted on NASDAQ OMX Helsinki Ltd.

Video and Image: Finnair.

Finnair:ย 

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 andย 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.ย  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
Revenueย ย 

(millions)

Passenger
Revenue vs.

3Q 2011

PRASMย  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.ย 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 DIRECTVยฎ, 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.

Copyright Photo: Andi Hiltl. Boeing 767-322 ER N653UA (msn 25391) lands at Zurich.

United Airlines:ย 

First Looks: An Inside Look at United Airlines’ new Boeing 787-8 Dreamliner

Guest Editor Jay Selman

Guest Editor Jay Selman

I was fortunate enough to attend the media event introducing United‘s first 787-8 on August 2, 2012.ย  With all the hoopla surrounding the 787, I was curious to see if it lived up to all the hype.

This is the first 787 I’ve been up close to, and it is a much larger beast that I first thought. Originally, I had thought it relatively unimpressive, visually. I mean, if the A330 looks like a greyhound and the 777 looks like a mastiff, the 787 looks like aโ€ฆwhat? Maybe a 767 crossed with an Embraer 190? Up close, however, it is obviously much larger than a 767, and more graceful. It looks fast just sitting on the ground.

Creature comforts are appropriate with the class of service! United’s Business First and Economy Plus customers can look forward to extremely comfortable cabins. Seating in both cabins is 2-2-2. The Business First seats convert to lie-flat beds that are 6โ€™4โ€, long enough to accommodate the vast majority of passengers.

The Economy Plus seats do not convert into flat beds, but they look more like Business Class seats than Ecomony.

Economy is…well, Economy! United’s Economy cabin is laid out in 3-3-3 seating with a “777-style” ceiling. The good news is that the overhead bins are HUGE, which will be welcome news to both passengers and gate agents such as myself! LOL.

Boeing took great pains to design the front office with a similar layout to the 777. While the 777 and 787 are two different type certificates, 777 pilots can transition to the 787 with an abridged training program, thanks to the similarity of the flight deck. I found the Heads Up Display interesting, and the pilots were enthusiastic about that. Finally, todayโ€™s world being what it is, the aircraft comes with several cameras mounted in the cabin, which allow the pilots to keep an eye on activity, especially who is approaching the flight deck door.

I was told by the United captain onboard that with the 787, Boeing has officially done away with the two-character customer code that has been a Boeing tradition since forever. Therefore, this is not a 787-824 (as the airplane was ordered by Continental), nor a 787-822 (United’s customer code). The data plate shows it as simply a 787-8. Has anyone seen the data plate on the ANA or JAL 787s? I’m curious if they also show 787-8?

The 787 windows have received a lot of press, both for their size and electrochromism-based dimming feature. The windows are, indeed,significantly larger than the windows of any jet airliner flying today, by far. But for someone who remembers flying in Viscounts and even DC-8s, I felt a little bit of a letdown. I guess I was hoping for something that would put my 39″ flat screen to shame! As for replacing good old fashioned window shades with the dim-able windows, I see some advantages, specifically that the flight attendants can adjust the inside lighting of the entire cabin with the touch of a switch. But is it better? I know that ANA has already come to Boeing saying that it does not darken the cabin enough, and I have to agree with them.

The 787 also has two crew rest compartments, located above the main cabin. One compartment is directly opposite the flight deck door for the pilots


and one aft for the flight attendants

What really makes the 787 a game-changer, so I am told, is not what we see, but what passengers will feel, and what the bean-counters see. Boeing claims that the sustained cabin altitude of 6,000 feet and 15 percent ย humidity (as opposed to 4 percent now standard), will allow passengers to arrive at their destination feeling considerably more refreshed than we currently do. The operating economics of the 787 are also invisible to our eyes, but the bean-counters love it.

So, overall, the 787 looks like it’s going to be a sweet ride. I canโ€™t wait for my first flight on one. I would like to thank the folks at United Airlines and Boeing for their gracious assistance.

All Photos Copyright – Jay Selman/AirlinersGallery.com.

United Airlines Press Release:

“United Airlines on August 2 unveiled its new Boeing 787 Dreamliner, which will revolutionize the flying experience for United customers and crews while delivering unprecedented operating efficiency, comfort and lower emissions. The airline showcased its first 787, fresh out of the paint hangar at Boeing’s Everett, Wash., facility. United is the North American launch customer for the Dreamliner, and expects to take delivery of its first 787 in September. ย The airline has firm orders for 50 787s, for delivery by 2019.

Primarily built with composite materials, the 787 has 30 percent more range and uses approximately 20 percent less fuel than similarly-sized aircraft, while reducing emissions and noise during takeoffs and landings. With these advantages, the 787 will open up new non-stop destinations that customers would not be able to otherwise reach on United, such as the recently-announced Denver-to-Tokyo service that starts next spring.

The aircraft cabin is configured with 36 seats in United BusinessFirst, 72 seats in United Economy Plus and 111 seats in United Economy. Customers will be more comfortable with improved lighting, bigger windows, larger overhead bins, lower cabin altitude and enhanced ventilation systems, among otherย features. The 787’s inflight entertainment system features an all-new design that offers more intuitive browsing and more filtering options, giving customers the option of searching for programs by language.

United’s unveiling provided the first look at the aircraft’s interior and customized livery that is exclusive to the fleet, featuring a gold line that wraps the fuselage and swoops from nose to tail. The livery is inspired by the trademark swoop painted on each of Boeing’s aircraft and is being adopted for the United 787 in a tribute to the two companies’ long history of working together.”