Tag Archives: BWI

Delta reports on its holiday performance, winter storm to impact operations

Delta Air Lines Boeing 737-932 ER SSWL N839DN (msn 31950) BWI (Tony Storck). Image: 930156.

Delta Air Lines operated more than 55,000 flights carrying nearly 6 million customers during the peak travel period from December 21, 2017, to January 1, 2018, without a mainline flight cancellation while setting a company record with a 99.85 percent combined Delta and Delta Connection completion factor, the measure of flight schedule to flights flown. The airline also started the year on a strong footing with no cancellations on New Year’s Day.1

“Through the hard work and relentless dedication of our employees, Delta endeavors to be the world’s most reliable airline—getting our customers where they want to go safely and with minimal disruption, even during some of the busiest times of the year,” said Gil West, Chief Operating Officer. “Ending yet another year with record-setting performance is a testament to the hard work of all 80,000 Delta employees, who continue to demonstrate what sets Delta apart.”

The strong holiday performance builds on Delta’s record-setting 2017, as the airline flew 90 days without a cancellation across the combined mainline and Delta Connection operation, an increase from 81 days in 2016. Similarly, Delta flew 242 days in 2017 without a mainline cancellation, eclipsing its 2016 record by a day, despite a year of severe weather including a record number of hurricanes that closed airports throughout the Caribbean and Florida for several days, as well as an airport-wide power outage at the airline’s busiest hub in Atlanta.2

Delta flew more than 192 million customers in 2017, a record for the airline, on more than 1.8 million mainline Delta and Delta Connection flights around the world.

[1] Based on Delta’s internal statistical reporting of all Delta and Delta Connection flights scheduled between Dec. 21, 2017, and Jan. 1, 2018.

[2] Based on Delta’s internal statistical reporting of all Delta and Delta Connection flights scheduled between Jan. 1, 2017, and Jan. 1, 2018.

In other news, on the weather front, Delta meteorologists and leaders in the airline’s Operations and Customer Center arefollowing a low pressure system off the southeast coast of the U.S. The storm is bringing frozen and mixed precipitation to airports in northern Florida, southern Georgia and the Carolinas on Wednesday.

The same storm will continue north, potentially affecting airports and possibly disrupting flight schedules along the eastern seaboard. The storm is not forecast to hit the Atlanta hub, Delta’s busiest.

NOAA Weather Map:

Copyright Photo: Delta Air Lines Boeing 737-932 ER SSWL N839DN (msn 31950) BWI (Tony Storck). Image: 930156.

Delta Air Lines aircraft slide show:

United is adding new service to ski destinations and Hawaii

United Airlines Boeing 757-222 N540UA (msn 25252) BWI (Tony Storck). Image: 910769.

United Airlines hass issued this statement:

United is increasing service to popular ski destinations across the United States. The airline has added three new routes this winter – ChicagoReno, Nevada; ChicagoSun Valley, Idaho; and San FranciscoVail, Colorado – and is flying more flights on existing markets between its hubs and popular ski cities, including Aspen, Colorado; Vail, Colorado; Crested Butte, Colorado; Steamboat Springs, Colorado; Jackson Hole, Wyoming; Sun Valley, Idaho; Bozeman, Montana; Glacier National Park, Montana; and Reno, Nevada.

In addition to winter fun, United offers more ways to get to the Hawaiian Islands than any other airline from the mainland and is strengthening its gateways to Hawaii from its hubs in Chicago, Denver, Los Angeles and San Francisco.

From Chicago, United offers the only nonstop service to Hawaii and is now increasing its service to Maui to five times weekly while continuing daily, year-round nonstop service to Honolulu.

Denver has become one of United’s Hawaiian gateway cities and is now connecting more than 90 mainland cities to Honolulu, Kona, Lihue and Maui. In addition to offering customers more opportunities to connect, United is increasing from seasonal to daily, nonstop service to Kona, Lihue and Maui and continues to operate year-round daily service to Honolulu.

From Los Angeles, United offers nonstop service to more Hawaiian Island destinations than any other airline. This year, United is increasing service between Los Angeles and all United Hawaii destinations – Hilo, Honolulu, Kona, Maui and Lihue. United is the only U.S. airline with nonstop service from Los Angeles to Hilo, on the Island of Hawaii.

In addition to its five-times-daily service between San Francisco and Honolulu in February, United is increasing service to Kona, Lihue and Maui. From San Francisco, United offers more nonstop service to more Hawaiian destinations than any other airline.

Copyright Photo: United Airlines Boeing 757-222 N540UA (msn 25252) BWI (Tony Storck). Image: 910769.

Omni Air International flight attendants ratify their first contract

Omni Air International-OAI Boeing 777-222 ER N927AX (msn 26943) BWI (Tony Storck). Image: 907788.

Flight Attendants at charter airline Omni Air International, represented by the Association of Flight Attendants-CWA (AFA), have voted by 78 percent to ratify a first contract. The agreement provides immediate pay raises, defined schedule and work rules as well as job security with due process.

Omni Air International, based in Tulsa, Oklahoma, operates international and domestic passenger charters. In addition, Omni Air also provides cargo and troop airlift for the U.S. military. The contract was reached with the assistance of the National Mediation Board.

Copyright Photo: Omni Air International-OAI Boeing 777-222 ER N927AX (msn 26943) BWI (Tony Storck). Image: 907788.

American Airlines strengthens service to Canada in 2018

American Airlines Boeing 737-823 WL N830NN (msn 31091) BWI (Tony Storck). Image: 927377.

American Airlines is strengthening its ties to Canada. Starting next summer, American is adding service from its hub at Chicago O’Hare International Airport (ORD) to Calgary International Airport (YYC) and Vancouver International Airport (YVR). Daily service to Vancouver begins May 4, 2018, and seasonal service to Calgary begins June 7, 2018. The airline will also increase frequencies from the U.S. East Coast to Eastern Canada and extend seasonal service to popular Canadian destinations.

Canada fact sheet

New routes to Western Canada in 2018:

New service dates

ORD–YVR: May 4, 2018
ORD–YYC: June 7, 2018–Sept. 4, 2018

Schedule

ORD–YVR
Departs ORD at 8:35 p.m.
Arrives YVR at 11:14 p.m
YVR–ORD
Departs YVR at 11 p.m.
Arrives ORD at 5:14 a.m. (next day)
ORD–YYC
Departs ORD at 9:55 a.m.
Arrives YYC at 12:35 p.m.
YYC–ORD
Departs YYC at 1:20 p.m.
Arrives ORD at 5:40 p.m.

 

 

Aircraft

ORD–YVR: Boeing 737-800
ORD–YYC: Embraer E175, Operated by Envoy

 

Increased service to Western Canada in 2018:

  • Edmonton: American has added an additional winter trip between Phoenix Sky Harbor International Airport (PHX) and Edmonton International Airport (YEG), increasing to two daily flights between Dec. 15, 2017 and April 2, 2018.

Increased service to Eastern Canada in 2018:

  • Toronto: Beginning Feb. 15, 2018, American is adding an additional trip between New York LaGuardia (LGA) and Toronto Pearson International Airport (YYZ) and starting May 4, 2018, American is adding an additional trip from Ronald Reagan Washington National Airport (DCA) to YYZ. LGA to YYZ is increasing from four to five trips (year-round) and upgauging two frequencies to a dual-cabin Embraer E175. DCA to YYZ is increasing from two to three trips (year-round).
    • Customers flying from YYZ will have access to a new, contemporary premium experience in Terminal 3 with the recently re-opened and redesigned 2,500-square-foot Admirals Club® lounge.
  • Ottawa: On May 4, 2018, American is adding an additional frequency between Philadelphia International Airport (PHL) and Ottawa International Airport (YOW). This route will now be operated three times daily, year-round.
  • Quebec City: Service between PHL and Quebec City Jean Lesage International Airport (YQB) has been extended through Nov. 3, 2018.

With the addition of this new service, American will offer up to 69 daily flights from seven Canadian cities to U.S. hubs in Charlotte, Chicago, Dallas-Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C.

Top Copyright Photo: American Airlines Boeing 737-823 WL N830NN (msn 31091) BWI (Tony Storck). Image: 927377.

Allegiant announces a tentative Flight Attendant contract agreement with the TWU

Allegiant Air Airbus A320-214 WL N250NV (msn 7743) BWI (Tony Storck). Image: 939055.

Allegiant Air has announced that the company and the Transport Workers Union (TWU), representing Allegiant flight attendants, have reached a tentative agreement on the first collective bargaining agreement between the parties. The tentative agreement is subject to ratification by the Allegiant flight attendants, and results of the vote are expected before the end of December. Allegiant currently employs 1,150 flight attendants.

The process of negotiating a first collective bargaining agreement for Allegiant flight attendants began in 2011. The Transport Workers Union was most recently certified as the group’s exclusive representative on February 26, 2016. An initial tentative agreement reached between the parties failed to ratify in September 2016, and negotiations continued under the supervision of the National Mediation Board to reach the current tentative agreement.

Copyright Photo: Allegiant Air Airbus A320-214 WL N250NV (msn 7743) BWI (Tony Storck). Image: 939055.

Spirit Airlines is coming to Richmond

Spirit Airlines Airbus A320-232 WL N646NK (msn 7062) BWI (Tony Storck). Image: 933496.

Spirit Airlines has announced it is coming to Richmon, Virginia. Beginning March 15, 2018, Spirit will begin daily, nonstop service from the Richmond International Airport (RIC) to Orlando International Airport (MCO) and Fort Lauderdale-Hollywood International Airport (FLL). Richmond will become the 62nd destination to join Spirit’s growing network, connecting the Old Dominion to the Sunshine State just in time for spring

Copyright Photo: Spirit Airlines Airbus A320-232 WL N646NK (msn 7062) BWI (Tony Storck). Image: 933496.

Alaska Airlines to fly the only nonstop flight from Seattle/Tacoma to Pittsburgh

Alaska Airlines Boeing 737-990 ER WL N265AK (msn 62682) (Honoring Those Who Serve) BWI (Brian McDonough). Image: 937282.

Alaska Airlines on November 15, 2017 announced it will add nonstop, daily service between Seattle/Tacoma and Pittsburgh next fall. This new service is currently the only nonstop flight offered from Seattle-Tacoma International Airport to Pittsburgh International Airport. The new route provides a link from the West Coast to the thriving business community in Pittsburgh, which is continuing to grow as more technology companies look to establish a presence in the city.

Alaska Airlines to fly nonstop to Pittsburgh from Seattle

 

Summary of new service:
Start Date City pair Departs Arrives Frequency Aircraft
Sept. 6 Seattle-Pittsburgh 8:25 a.m. 4:10 p.m. Daily B737
Sept. 6 Pittsburgh-Seattle 5:20 p.m. 7:50 p.m. Daily B737
Flight times based on local time zones.

Copyright Photo: Alaska Airlines Boeing 737-990 ER WL N265AK (msn 62682) (Honoring Those Who Serve) BWI (Brian McDonough). Image: 937282.

777 Partners announces the re-launch of World Airways

World Airways McDonnell Douglas DC-10-30 N138WA (msn 47845) BWI (Tony Storck). Image: 904552.

777 Partners, a US based investment firm, announced on November 8, 2017 that it has acquired the intellectual property of World Airways, Inc., the iconic US airline known for its worldwide operational capabilities,  and is planning to re-launch World Airways as a low cost, long haul airline flying state of the art Boeing 787 Dreamliner aircraft. Initial funding for certification and aircraft acquisitions is being provided by 777 Partners. Discussions are underway with Boeing for an initial order for up to ten (10) 787-aircraft.

Ed Wegel, founding CEO of World (formerly of Eastern Air Lines 2nd) commented, “World has a rich and storied history dating back to 1947. It was once the world’s largest independent charter airline, and served the US military and other clients with great distinction for many years.

“Today, we are proud to begin preparations to launch scheduled operations from the US to Asiaand Latin America. We will be partnering with low cost, short haul carriers in the US and in the regions we serve to provide connecting traffic to and from our initial planned gateways. We plan to announce our new brand look and feel within the next few weeks, under the direction of our Founding CMO, Freddie Laker.”

Managing Partner of 777 Partners, Josh Wander, said, “777 Partners is humbled by the opportunity to participate in the relaunch of World, a seminal brand in the history of US commercial aviation. We are determined to pay proper homage to World’s rich heritage by delivering a transformative flying experience rooted in safety, technology and service to the large segment of the traveling public historically priced out of international travel.”

About World Airways

World Airways will be the first long haul wide body low cost carrier based in the US. It will operate the Boeing 787 on routes from the US  to Asia and Latin America, and plans to be based at Miami International Airport with planned initial operating hubs at MIA and LAX.

About 777 Partners

777 Partners is a Miami based investment firm focused on a broad spectrum of specialty finance businesses, asset originators and financial technology and services providers. Our overarching thesis is to incubate new ventures and to make control investments in businesses with scalable profiles and ambitious management teams operating in attractive markets. 777’s senior management team is composed of industry veterans with backgrounds in private equity, venture capital, investment banking, financial technology, insurance, actuarial science, asset management, structured-credit, ABS, risk, analytics, complex commercial litigation and computer science.

Copyright Photo: The original World Airways ended operations on March 26, 2014. World Airways McDonnell Douglas DC-10-30 N138WA (msn 47845) BWI (Tony Storck). Image: 904552.

Wow Air to launch low-fare flights from New York JFK

First A321neo, delivered on June 21, 2017

Wow Air will begin service to John F. Kennedy International Airport (JFK) this spring, with the inaugural flight from the United States’ busiest international airport scheduled for April 26, 2018.

Additionally, the airline is extending service out of Newark Liberty International Airport (EWR) with 13 flights per week starting May 2018.

$99 one-way tickets from JFK will go on sale for passengers looking to travel to
Paris,Amsterdam, London Stansted, Frankfurt, Dublin, Copenhagen and Berlin.

 

To celebrate the new route, special prices will also be available out of the following US cities to select locations:

  • From Newark (EWR), Cleveland (CLE) and Cincinnati (CVG) to Paris (CDG), Amsterdam (AMS), London (STN), Frankfurt (FRA), Dublin (DUB), Copenhagen (CPH) and Berlin (SXF) via Iceland.
  • Miami (MIA) to Paris (CDG), Amsterdam (AMS), Dublin (DUB) and Copenhagen (CPH) via Iceland.
  • Boston (BOS) and Pittsburgh (PIT) to Paris (CDG), Amsterdam (AMS), London (STN), Brussels(BRU), Dublin (DUB), Copenhagen (CPH) and Edinburgh (EDI) and Stockholm (ARN) via Iceland.

Launched in November 2011, Wow Air now connects 38 destinations across North America, Europe and the Middle East with Iceland. In 2016, Wow Air flew with 1,668,773 passengers in total, which is an increase of 130% from 2015.

Copyright Photo: Wow Air Airbus A321-253N WL TF-SKY (msn 7694) BWI (Tony Storck). Image: 939133.

Allegiant reports its 3Q results, will now retire its last McDonnell Douglas MD-80 by the end of 2018

Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N884GA (msn 49401) BWI (Tony Storck). Image: 939690.

Allegiant Travel Company (Allegiant Air) has reported the following financial results for the third quarter 2017, as well as comparisons to the prior year:

Three Months Ended
September 30,
Nine Months Ended
September 30,
Unaudited 2017 2016 Change 2017 2016 Change
Total operating revenue (millions) $ 348.8 $ 333.5 4.6 % $ 1,125.2 $ 1,026.9 9.6 %
Operating income (millions) $ 42.9 $ 76.8 (44.1 )% $ 201.0 $ 302.4 (33.5 )%
Net income (millions) $ 22.3 $ 45.5 (51.0 )% $ 112.4 $ 178.3 (37.0 )%
Diluted earnings per share $ 1.39 $ 2.75 (49.5 )% $ 6.85 $ 10.73 (36.2 )%
Return on capital employed* 14.7 % 24.8 %

* – see appendix for calculation, represents twelve months ended September 30

 

“Lastly, our board of directors approved a more aggressive retirement plan for our MD-80s. We now plan to retire our last MD by the end of 2018. This is one year earlier than was previously expected. A hearty ‘thank you’ goes out to the members of our fleet team, who through hard work were able to source enough used A320 aircraft to make this happen. This is the end of an era for our company. The ‘80’ has been critical to our success and growth for the past 15 years – it will be missed.”

Notable highlights

  • Operational improvements – 61 percent reduction in controllable cancellations in the quarter
  • Airbus growth – Added five A320s and one A319 into revenue service during the quarter
  • MD-80 retirements – Retired five MD-80s during the quarter – remainder expected to be retired by the end of 2018
    ◦ MD-80s and related assets have a net book value of $42 million and are being reviewed for impairment
  • Sunseeker Resorts – In August, announced plans to develop a hotel/condo resort in Charlotte County, Florida
  • Network growth – As of September 30, 2017 the company is operating 373 routes versus 337 last year
  • New aircraft base – Announced Indianapolis, Indiana as an aircraft base to support the growth in that area
  • Shareholder returns – $11 million was returned through its recurring dividend paid in September 2017. The company:
    ◦ Will pay dividend of $0.70/share on December 5, 2017 to shareholders of record as of November 22, 2017
    ◦ Has share repurchase authorization of up to $100 million

Third quarter 2017 revenue

  • TRASM results – Third quarter TRASM increased 0.7 percent in spite of:
    Increased MD-80 spares during the quarter, which resulted in a three percent decline in peak period capacity
    Hurricane Irma:
    ▪ Approximately two percent of scheduled ASMs for the quarter were canceled
    ▪ TRASM – Expected benefit from reduced ASMs – offset by refunds and decreased demand to Florida

Fourth quarter 2017 revenue trends

  • TRASM guidance – Expect a decline between three and 0.5 percent which is influenced by:
    ◦ Hurricane Irma and the Las Vegas mass shooting
           ▪ Approximately 80 percent of fourth quarter ASMs touch Las Vegas or Florida
    ▪ So far a decrease in demand during fourth quarter
    ▪ Impact on fourth quarter TRASM expected to be approximately between 3 and 3.5 percentage points
    ◦ Peak period flying – Fourth quarter peak capacity expected to increase nine percentage points

Third quarter cost

  • Third quarter CASM ex fuel increased 16.7 percent versus the same period last year, primarily driven by:
    ◦ Transition costs added four percentage points to increase, including:
    Reduced ASMs from fleet transition through lower utilization of MD-80s
    ▪ Other operational inefficiencies driven by the transition to an all Airbus fleet
      ◦ New pilot agreement – Added one percentage point
    Incremental depreciation from additional Airbus aircraft – added three percentage points
    Elimination of the credit card surcharge product
    ▪ January 2017 discontinued credit card surcharge which had offset sales and marketing expense
    ▪  Added four percentage points in quarter
    Hurricane Irma – Added almost two percentage points due to flight cancellations

Fourth quarter 2017 cost trends

  • Fourth quarter 2017 CASM ex fuel is expected to increase between seven and nine percent, primarily driven by:
    ◦ Transition costs – Expected to add three percentage points to increase, including:
    Reduced ASMs from fleet transition through lower utilization of MD-80s
    ▪ Other operational inefficiencies driven by the transition to an all Airbus fleet
      ◦ New pilot agreement – Expected to add one percentage point due to increased benefit costs
    Incremental depreciation on additional Airbus aircraft – Expected to add two percentage points
    Elimination of credit card surcharge – Expected to add three percentage points

Full year 2017 cost trends

  • Full year 2017 CASM ex fuel
      ◦ Expected to increase between eleven and twelve percent
    ◦ Previously guided range of plus ten to twelve percent
  • Maintenance and repairs expense
    ◦ Expected between $105 and $110 thousand per in-service aircraft per month for 2017
    ◦ Previously guided range – between $100 and $110 thousand
  • Total ownership expense per aircraft per month
      ◦ 2017 ownership expense per in-service aircraft – between $125 and $130 thousand per month
    ◦ Previously guided range between $125 and $135 thousand

Balance sheet activity and full year 2017 trends

  • Full year CAPEX guidance is expected to be $604 million, versus prior guidance of $525 million
    ◦ Higher amount driven by expected commitment for five additional Airbus A320 aircraft in the fourth quarter
    ◦ Excludes Airbus heavy maintenance and Sunseeker resort
  • Raised $158 million in debt proceeds during the third quarter
    ◦ Includes monies drawn from existing $56 million revolving credit facility
    ◦ Seven Airbus aircraft remain unencumbered at end of third quarter
    ▪ Includes one new A320 which was collateralized in October

Copyright Photo: Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N884GA (msn 49401) BWI (Tony Storck). Image: 939690.