Tag Archives: DHC8

Alaska Air Group reports net income of $67.5 million

Alaska Air Group (Seattle/Tacoma), the parent organization of Alaska Airlines and Horizon Air (Alaska Horizon), today reported its financial results for the second quarter. The company issued the follow report:

Alaska Air Group today reported second quarter 2012 GAAP net income of $67.5 million, or $0.93 per diluted share, compared to GAAP net income of $28.8 million, or $0.39 per diluted share in 2011. Excluding the impact of mark-to-market fuel hedge adjustments of $69.6 million($43.3 million after tax, or $0.60 per diluted share), the company reported record second quarter2012 net income of $110.8 million, or $1.53 per diluted share, compared to net income excluding special items of $89.6 million, or $1.22 per diluted share, in 2011.

The following table reconciles the company’s reported GAAP net income and earnings per diluted share (EPS) during the second quarters of 2012 and 2011 to adjusted amounts:

	Three Months Ended June 30,
	2012				2011
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	67.5	$	0.93	$	28.8	$	0.39
Fleet transition costs, net of tax	—		—		16.7		0.23
Mark-to-market fuel hedge adjustments, net of tax	43.3		0.60		44.1		0.60
Non-GAAP adjusted income and per share amounts	$	110.8	$	1.53	$	89.6	$	1.22

Copyright Photo: Michael B. Ing. Horizon Air’s (Alaska Horizon) Bombardier DHC-8-402 (Q400) N400QX (msn 4030) painted in the Idaho Vandals special livery taxies to the runway at the Seattle/Tacoma home and hub.

Alaska Horizon:

Alaska Airlines:

Horizon Air:

Jazz Aviation LP announces tentative agreement with its Maintenance and Engineering’s union

Jazz Aviation LP (Halifax) has announced it has reached a tentative labor contract with its Maintenance and Engineering employees represented by the Canadian Auto Workers (CAW) Local 2002.

The agreement is subject to a ratification vote by union members and covers approximately 885 CAW-represented Maintenance and Engineering employees at Jazz.

Island Air launches a new livery and will add ATRs in Hawaii

Island Air (Hawaii) is overhauling their already colorful livery. Following the announcement by Hawaiian Airlines that they will start an inter-island turboprop subsidiary, Island Air has announced a complete image and brand overhaul. The inter-island airline is also adding ATR 42s and ATR 72s starting in August.

The comprehensive rebranding touches every aspect of the airline; from an enhanced website to a newly inspired aircraft livery design, including an exciting new logo mark and identity.

Along with the new look, Island Air is upgrading its fleet with ATR 42 and ATR 72 aircraft. The new aircraft are more fuel efficient, and carry more passengers than the current Bombardier DHC-8-100 aircraft that are being replaced.

The changes and additions to Island Air’s brand will take place incrementally with the complete rebranding targeted for completion in the fall.

Top Image: Island Air.

Click on the map to expand.

Bottom Copyright Photo: TMK Photography. Island Air operated the Bombardier DHC-8-402 (Q400) in the past but the type proved to be too large at that time.

Island Air:

Chorus Aviation Inc. exercises options to acquire additional Bombardier Q400 NextGen aircraft

Chorus Aviation Inc. (Halifax) today announced it has exercised six of 15 options it holds to acquire additional Bombardier DHC-8-402 (Q400) NextGen aircraft to be operated by its subsidiary, Jazz Aviation LP (Halifax) under the Air Canada Express brand.

Jazz will operate 16 Q400s this month under the Air Canada Express brand, which includes one Q400 on short term lease for the peak summer season only. The Q400 aircraft accommodate 74 passengers, and are configured in a single cabin. The six optioned Q400s are contracted to be delivered at a rate of two per month in February, March and April, 2013, and will be placed into operation the subsequent month. A total of nine 50-seat CRJ100 aircraft will be removed from the Jazz fleet between December, 2012 and May, 2013. As a result, the covered fleet under the Capacity Purchase Agreement with Air Canada will be reduced from 125 to 122 aircraft, with the overall seating capacity, operated under the CPA with Air Canada, being held relatively constant.

The new aircraft will be leased via a Chorus leasing company to Jazz. The purchase is supported by a third party lender under terms similar to the original order of 15 Q400 aircraft. The transaction is anticipated to be accretive to Chorus’ consolidated operating results. As required under the purchase agreement, Chorus has made pre-delivery payments of approximately $13 million USD which have been funded from current cash balances and will not impact Chorus’ current dividend policy.

In support of the continued fleet renewal program at Jazz, Air Canada and Jazz have agreed to amend their CPA to reflect the following:

Covered Aircraft reduced from 125 to 122 aircraft, resulting in a net reduction of six seats in the entire Jazz CPA fleet effective May, 2013 once all Q400 aircraft have been introduced into service.
In February 2013 when the number of Covered Aircraft reaches 122 aircraft, the annual minimum guaranteed Block Hours of 339,000 will be reduced to approximately 331,000 Block Hours to reflect the new number of Covered Aircraft.
The agreement between the parties does not change the mark-up on controllable costs structure and mark-up rates but establishes new metrics resulting from the new annual minimum guaranteed Block Hours as follows:
- The Compensating Mark-up will now be applied based on the range between the new annual minimum Targeted Block Hours of approximately 367,000 and the revised annual minimum guaranteed Block Hours of approximately 331,000. The difference between the annual minimum guaranteed Block Hours and the annual minimum Targeted Block Hours remains at 36,000 Block Hours. This agreement also resolves one of the issues raised in the 2009 Benchmark Arbitration with reference to how the Compensating Mark-up formula will be applied.
- Mark-up on variable controllable costs for annual Block Hours over 375,000 will remain at 5.0%.

The exercise of the six options and the amendments to the CPA do not result in any change to Chorus’ current annual Block Hour guidance for the year 2012 of between 385,000 and 400,000 hours.

Air Canada Express-Jazz:

Piedmont Airlines’ fleet and passenger service employees ratify the contract

Piedmont Airlines (2nd) (subsidiary of US Airways) (US Airways Express) (Salisbury) fleet and passenger service employees have voted to ratify the new collective bargaining agreement previously announced on May 31. The new four and a half year agreement was ratified by Piedmont Airlines’ more than 3,000 employees who are represented by the Communications Workers of America (CWA).

US Airways Express-Piedmont Airlines:

EuroLOT acquires its first three Bombardier Q400s, opens new routes to Amsterdam and Bremen

EuroLOT (eurolot.com) (Warsaw) took delivery of its first three new Bombardier DHC-8-402s (Q400s) in May with the pictured SP-EQA (msn 4406) arriving first on May 18. The carrier opened new routes to Amsterdam from Gdansk (three flights a week) and Krakow (four flights a week) and to Bremen from Gdansk (three flights a week) on June 6.

Copyright Photo: Ton Jochems. The arrival of the Q400s spawned this updated 2012 livery which now features web titles and a reverse red and white tail logo.