Tag Archives: ERJ 170-200

SkyWest reports a third quarter net profit of $41.3 million

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) today reported financial and operating results for the third quarter ended September 30, 2014. Highlights are as follows:

SkyWest’s net income was $41.3 million (inclusive of $15.3 million after-tax related to TRIP gain from below), or $0.79 per diluted share, for the quarter ended September 30, 2014. This compares to net income of $26.4 million, or $0.50 per diluted share, for the same period last year.

Significant financial items related to the third quarter included:

Operating income, which excludes TRIP gain, increased $2.9 million from the same period last year, despite the negative financial impact of FAR117 flight and duty rules implemented January 2014

The completion of the Trip Linhas Aereas S.A. stock sale resulted in a pre-tax gain of $24.9 million and interest income of $2.1 million

Operating revenues, after excluding a reduction in direct contract reimbursement for pass-through cost expenses, increased 1.9% compared to the prior period, despite a 6.0% reduction in departures and 3.8% reduction in block hours from the prior period

Significant operational and commercial items include:

16 ERJ145s were removed from contract during the third quarter of 2014. SkyWest anticipates 18 ERJ145s will be removed during the fourth quarter of 2014, and 23 ERJ145s and 9 ERJ135s will be removed during the first half of 2015.

As of September 30, 2014, SkyWest had 14 E175 jet aircraft in the United Airlines contract and took delivery of one additional E175 in October 2014. SkyWest expects delivery of six additional E175 aircraft by December 31, 2014 and the remaining 19 additional aircraft by August 2015.

ExpressJet appointed Alexandria Marren as its COO effective October 1, 2014

Operational reliability at ExpressJet improved to 99.4% adjusted completion for the September 30, 2014 quarter from 99.0% from the same period last year

SkyWest invested approximately $35.7 million for E175 specific spare parts, engines and tooling as of September 30, 2014. SkyWest also invested $56.0 million into E175 ownership equity as of September 30, 2014.

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO said, “The increase in operating income from last year is positive news when factoring the significant cost impact of FAR117 we’ve experienced in 2014 and the reduction in departures and block hours since last year.” He continued, “As we pursue opportunities to remove our older 50-seat aircraft from service and add new larger dual-class aircraft, we are optimistic that our operational reliability and financial results will continue to improve. We remain committed to our major partners and our process to improve both financial and operating performance.”

Financial Performance

Total operating revenues, excluding the significant direct contract reimburses for fuel, landing fees, station rents, and engine maintenance, increased by $12.7 million during the quarter ended September 30, 2014 from the same period last year. The improvement was primarily due to certain contract renewals and modifications, operating additional E175 aircraft, and increased government subsidies for operating certain routes.

Flight crew costs and related crew hotels expenses associated with FAR117 and training costs for the introduction of the new E175 aircraft, that resulted in an increase of $13.8 million in operating costs compared to the quarter ended September 30, 2013.

Direct maintenance expense, excluding engine maintenance expense, decreased $12.2 million during the quarter ended September 30, 2014 compared to the same period last year due to a reduction in scheduled events and removal of older aircraft after June 30, 2013. Certain other operating expenses, primarily related to the E175 aircraft and pro-rate operations, increased during the three months ended September 30, 2014 compared to the same period last year.

Liquidity

At September 30, 2014, SkyWest had $555.7 million in cash and marketable securities, compared to $467.0 million as of June 30, 2014 and $670.1 million as of December 31, 2013. Cash and marketable securities decreased $114.4 million from December 31, 2013 to September 30, 2014, primarily due to SkyWest’s investment of approximately $91.7 million in E175 assets and E175 equity investment in the debt financing and timing of semi-annual aircraft lease payments resulting in an increase of prepaid aircraft rents of $20.3 million. The cash and marketable securities balance increased from June 30, 2014 primarily due to pre-tax income generated during the quarter.

Long-term debt increased $130.8 million from December 31, 2013 to September 30, 2014. During this period, $323.7 million of long-term debt was used for the 14 E175 aircraft delivered in 2014, offset by principal payments made on outstanding debt.

Copyright Photo: Mark Durbin/AirlinersGallery.com. As the Embraer ERJ 135 and ERJ 145 fleet shrinks at ExpressJet, SkyWest Airlines had 14 Embraer ERJ 175 jet aircraft in the United Airlines contract at the end of September and took delivery of one additional ERJ 175 this month. SkyWest expects delivery of six additional E175 aircraft by December 31, 2014 and the remaining 19 additional aircraft by August 2015. Embarrass ERJ 170-200LR (ERJ 175) N118SY (msn 17000420) taxies at the San Francisco hub.

United Express-SkyWest Aircraft Slide Show:

Delta to restore Los Angeles-Dallas/Fort Worth flights on November 3 via Compass Airlines

Delta Air Lines (Atlanta) has confirmed it will launch twice-daily nonstop service from Los Angeles to San Antonio, Texas, beginning on April 7, 2015 as previously reported. The San Antonio service complements Delta’s daily service from Los Angeles to Dallas/Fort Worth, which relaunches on November 3, and the addition of a third daily flight between Los Angeles and Austin, Texas, beginning on November 2. All flights are operated by Delta Connection carrier Compass Airlines (Minneapolis/St. Paul).

With the addition of San Antonio and Dallas/Fort Worth service, Delta customers will have access to nine daily departures to three destinations between Los Angeles and Texas, including:

Four daily flights to Dallas/Fort Worth International Airport
Three daily flights to Austin-Bergstrom International Airport
Two daily flights to San Antonio International Airport

In the last year, Delta has significantly expanded its network from LAX, adding service to Austin; Boise, Idaho; and San Salvador, El Salvador; increasing the number of flights from destinations it already serves; and expanding to year-round service in Boston. Delta will also launch service from LA to Monterrey, Mexico, in November. Last fall, Delta expanded its service from Los Angeles to San Francisco with the launch of its hourly, nonstop Delta Shuttle product. In October, Delta will launch international service from LAX to London-Heathrow as part of its joint venture partnership with Virgin Atlantic Airways. Service to Austin, Boise, Monterrey and San Francisco is operated by Delta Connection carriers Compass Airlines and SkyWest Airlines.

Delta has also made significant enhancements to its Los Angeles service both on the ground and in the air in the past few years. Travelers through Los Angeles will enjoy the benefits of the $229 million expansion and enhancement of Terminal 5 at LAX. The current project will double the size of the ticketing lobby and screening checkpoints and open an exclusive Sky Priority lobby and checkpoint. It also will include renovations to the Delta Sky Club and new baggage carousels. The project is scheduled to take place in several phases, with the west lobby to be completed in November.

Delta currently operates 140 peak-day departures to 47 destinations from LAX, and every flight offers BusinessElite/First Class and Economy Comfort seating. Nearly every domestic flight features Wi-Fi service, and Delta now offers customers free entertainment from every seat out of LA through its new Delta Studio product.

Copyright Photo: Wingnut/AirlinersGallery.com. In this unusual view, Compass Airlines’ Embraer ERJ 170-200LR (ERJ 175) N620CZ (msn 17000214) taxies at Los Angeles International Airport (LAX).

Delta Air Lines (current):

Delta Connection-Compass:

Fuji Dream Airlines orders three Embraer E175s

Embraer S.A. has signed an agreement with FDA-Fuji Dream Airlines (Makinohara, Shizuoka, Japan) for a firm order of three E175s with options for an additional three aircraft of the same model.

This order was already included in Embraer’s 2014 second quarter backlog as an “undisclosed” customer. The announcement was made today at the 2014 edition of the Farnborough International Airshow. Three E170s and five E175s are currently in operation with Fuji Dream Airlines.

The newly-ordered E175s will be configured in a single-class layout with 84 seats and will be equipped with the Autoland system to perform CAT III approach and landing in limited visual conditions. The new E175s will also feature recent aerodynamic enhancements introduced by Embraer, such as a new wingtip and other technical improvements that reduce fuel burn.

Created in 2007, FDA started operations with two Embraer E170s. Over the last five years, its all-Embraer fleet has quadrupled. FDA’s fleet is instantly recognizable by its brightly coloured aircraft, some of which are painted green, pink, yellow and purple.

With aircraft based in Nagoya and Shizuoka, FDA links twelve secondary cities in Japan where demand is growing, such as Fukuoka, Sapporo and Hanamaki. Operating almost 50 flights each day, the airline has carried over 2.4 million passengers to date. FDA is part of the Suzuyo Group, which owns a full-flight simulator to provide pilot and fleet engineering training for its staff.

Fuji Dream Airlines was incorporated in June 2008 to be the Suzuyo Group’s air transportation arm. By entering the airline business and building on the convenience of Mt. Fuji Shizuoka Airport, Suzuyo contributes to Shizuoka’s economic development.

Copyright Photo: Akira Uekawa/AirlinersGallery.com. Embraer ERJ 170-200ST (ERJ 175) JA06FJ (msn 17000332) is one of the latest additions to the colorful fleet. Each aircraft is painted in a different color. JA06FJ taxies at the Mount Fuji Shizuoka Airport (FSZ).

FDA-Fuji Dream Airlines:

A colorful fleet:

LOT Polish Airlines fights back against low-cost rivals with new low fare groups

LOT Polish Airlines (Warsaw) is introducing new “Economy Plus” and “Economy Simple” fare groups to remain competitive against low-fare airlines. The airline just issued this statement:

In June LOT is introducing new Economy Plus class of service in short and medium haul aircraft and LOT Economy Simple tariffs providing discounts of up to 30 percent off normal economy fares.

Passengers traveling in LOT Economy Plus will enjoy a business product for an economy price. They will have a dedicated hotline number, check-in desk, priority baggage and boarding service as well as a dedicated bus when the aircraft cannot be accessed from a jet bridge at Warsaw airport. On board, these passengers will have a choice of meals, beverages and alcoholic drinks just as in business class. They will sit in the front of the aircraft and obtain more miles in the frequent flyer program than before. Premium Economy passengers traveling on long-haul flights will connect to flights in Europe in LOT’s Economy Plus Class.

LOT has also prepared a special, simple and low-cost tariff called LOT Economy Simple created for the short-haul passengers who want to decide for themselves what services to use and when the fare price is the lowest. Ticket prices are 30 percent lower than in standard economy class. With a LOT Economy Simple ticket, a passenger has the option for online or airport check-in and while on board, served a drink and a sweet snack plus score frequent-flyer miles.This tariff is mainly for leisure travellers traveling only with their cabin luggage.To check luggage, there will be charged PLN 60 ($20) extra.In normal economy class, checked luggage is still free.

A ticket in LOT Economy Simple starts at PLN 199 ($65).For example, flights to Brussels are 30 percent off PLN 439 ($144) in Economy Simple vs. PLN 638 ($210) in Economy; to London 29 percent off PLN 499 ($164) in Economy Simple vs. PLN 705 ($232) in Economy and to Paris 24 percent off PLN 449 ($148) in Economy Simple vs. PLN 458 ($151) in Economy.

These new developments are another step in implementing the Restructuring Plan.In the past year, the airline focused primarily on cutting costs, looking for savings and beginning to improve the quality of the product and service standards.

“We significantly improved our results in the past year, but cutting costs alone is not enough,” said Sebastian Mikosz, CEO LOT Polish Airlines. “To achieve sustainable profitability, LOT has to grow and take better care of its passengers, by expanding the portfolio, offering better comfort and a broader range of optional services.”

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) SP-LIE (msn 17000153) in the 1945 retrojet scheme taxies at Zurich.

LOT Polish Airlines:

LOT Polish Airlines introduces a 1945 retrojet color scheme on Embraer 175 SP-LIE

LOT Polish Airlines (Warsaw) has introduced an Embraer ERJ 170-200LR (ERJ 175) registered as SP-LIE (msn 17000153) in a 1945 retro paint scheme. This livery was used by company from 1945 through 1973.

According to LOT, “On the interior walls are mounted vintage photos and posters”.

Video:

LOT Polish Airlines:

Alitalia CEO: Etihad Airways will decide in 3-4 weeks whether to invest

Alitalia’s (2nd) (Rome) CEO Gabriele Del Torchio stated Etihad Airways (Abu Dhabi) is doing its due diligence (reviewing all of the data) which will take between three and fours week according to this report by Reuters. After its review, Etihad will then decide whether it will invest in the faltering flag carrier.

Alitalia is facing increased low-fare competition on its home turf and any rescue will face stiff opposition from other carriers and will need European Union approvals. Etihad, if it proceeds with an acquisition, is likely to ask for drastic cuts to personnel and costs (like Air France-KLM did).

Is there Alitalia 3 on the horizon?

Read the full report: CLICK HERE

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) EI-RDO (msn 17000348) approaches the runway at Zurich.

Alitalia (2nd):

Alitalia to finalize loans of $270 million with the banks in order to keep flying

Alitalia (2nd) (Rome) is about to finalize loans of around $270 million with banks that were pledged last year as part of a plan to keep the Italian flag carrier according to Reuters. However the carrier is coming under increasing pressure on its Italian turf from lost cost carriers (especially easyJet and Ryanair) now adding flights in Italy.

Read the full report: CLICK HERE

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) EI-RDF (msn 17000337) taxies at Zurich (ZRH).

Alitalia:

Flybe announces a major expansion at Birmingham with seven new routes

Flybe (Exeter) has unveiled a major expansion of its operations at Birmingham Airport with the announcement of seven new routes that includes a six times a week service to Florence, in a first for the airport; daily flights to Cologne; a six times a week service to Toulouse; a five times a week service to Alicante and four times a week to Bordeaux, Palma Mallorca and Porto.

Flybe is also adding three of its 2×2 seat Embraer 175 jets to the airport thereby creating its biggest ever regional base with 12 aircraft, thereby creating more than 50 new Flybe jobs.

Travel is effective from April 10, 2014 to Alicante, Cologne, Florence and Porto; and from May 13 for the remaining three routes (Bordeaux, Palma and Toulouse), the majority of flights will utilize Flybe’s new 88-seat E175 jet aircraft (see above).

The company last week announced it will be boosting the frequency on three of its most popular European routes from the end of March namely those to Hanover, Milan-Malpensa and Stuttgart.

As a result of the seven new destinations, Flybe will now operate 32 routes to and from Birmingham for the Summer of 2014 with a choice of up to 375 return flights a week totalling an impressive 1.7 million seats.

Copyright Photo: Ole Simon/AirlinersGallery.com. Embraer ERJ 170-200STD (ERJ 175) G-FBJA (msn 17000326) taxies at Dusseldorf.

Flybe:

Routes from Birmingham:

FDA-Fuji Dream Airlines adds its first Embraer ERJ 175

JA03FJ Embraer ERJ-175 “Fuji Dream Airlines”, originally uploaded by Daryl Chapman – Bauhinia photography.

FDA-Fuji Dream Airlines (Makinohara, Shizuoka) on January 21, 2010 added this Embraer ERJ 170-200STR (marketed as the ERJ 175) registered JA03FJ (msn 17000304).

Copyright Photo: Daryl Chapman. JA03FJ climbs away from a very damp and overcast Hong Kong. This is the third aircraft for FDA and each is painted in a different color. This is the first to wear pink.