Tag Archives: ERJ 170-200LR

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:

United to add Wi-Fi to over 200 two-cabin United Express regional jets

United Airlines (Chicago) announced plans to outfit more than 200 two-cabin United Express regional jets with Wi-Fi and personal device entertainment, with the first Wi-Fi-enabled flights expected later this year.

The airline intends to install Gogo’s ATG-4 advanced air-to-ground Wi-Fi product on Embraer 170, 175 and Bombardier CRJ700 aircraft and to complete planned installations by next summer.

Early next year, United expects to expand personal device entertainment to these aircraft, enabling customers to select from a wide range of movies and television shows to view on their Wi-Fi-enabled iOS and Android devices using United’s mobile app, as well as on laptop computers.

Regional Jet Investments

United has announced significant investments in its United Express service, including:

A fleet of 120 brand new Embraer 175 regional jets (above), which offer 12 seats in United First with in-seat power, 16 United Economy Plus seats, and larger overhead bins throughout the aircraft;

New, modern seats with a signature seat design on more than 100 CRJ700 aircraft and on the E175 fleet; and

Freshly prepared food for premium-cabin customers on United Express flights beginning in 2015.

Wi-Fi and Entertainment Investments

The launch of regional jet Wi-Fi and personal device entertainment is United’s latest investment in its customers’ in-flight connectivity. The airline also offers:

More than 340 aircraft with Wi-Fi, including nearly two-thirds of its mainline domestic fleet, with plans to install Wi-Fi on the entire mainline fleet by mid-2015; and

More than 180 mainline aircraft with personal device entertainment, including all Boeing 747s and Airbus aircraft and nine Boeing 777s that primarily fly between the continental U.S. and Hawaii. United plans to offer personal device entertainment on more than 200 mainline aircraft by the end of this year.

Copyright Photo: Mark Durbin/AirlinersGallery.com. Operated by SkyWest Airlines, Embraer ERJ 170-200LR (ERJ 175) N118SY (msn 17000420) taxies at the San Francisco hub.

United Airlines:

United Express-SkyWest:

United Express-SkyWest Aircraft Slide Show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-3/Airlines-United-States3-QZ/United-Express-SkyWest

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:

American to launch new American Eagle routes from Philadelphia and Dallas/Fort Worth

American Airlines (Dallas/Fort Worth) will start daily American Eagle service from its (US Airways) hub to both Jacksonville, FL and New Orleans on September 26. The routes will be operated by Embraer 175 aircraft operated by Republic Airlines (2nd) according to Airline Route.

In addition, American Eagle (operated by ExpressJet Airlines CRJ200s) will launch new daily service from the Dallas/Fort Worth hub to Meridian and Laurel, Mississippi.

Finally American will suspend service on three European routes this winter (resuming next summer): Chicago (“hare)-Dusseldorf, Chicago (O’Hare)-Manchester and New York (JFK)-Dublin per Airline Route.

Copyright Photo: Tony Storck/AirlinersGallery.com. Operated by Republic Airlines, Embraer ERJ 170-200LR (ERJ 175) N426YX (msn 17000397) taxies at Baltimore/Washington.

American Airlines (current):

American Eagle-Republic (2nd):

Republic Airlines to fly Embraer 175s as American Eagle from the Miami hub starting on October 2

Republic Airlines (2nd) (American Eagle) (Indianapolis) on October 2 will start operating Embraer 175s on American Eagle services from the Miami hub to Atlanta, Indianapolis, Jacksonville and Tallahassee. The E175s will replace existing Embraer ERJ 145 service per Airline Route.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Republic’s Embraer ERJ 170-200LR (ERJ 175) N404YX (msn 17000367) completes its final turn on the river approach into Washington’s Reagan National Airport (DCA).

American Eagle-Republic:

Compass Airlines to fly as an American Eagle carrier

Compass Airlines (Minneapolis/St. Paul) has announced it will operate 20 new 76-seat Embraer ERJ 175 aircraft owned by American Airlines, Inc.

Compass expects to begin taking delivery of the aircraft and start scheduled service under the American Eagle brand and livery in the first quarter of 2015. The agreement also provides American the option to place additional E175 aircraft it owns with Compass in the future.

American Airlines, a subsidiary of American Airlines Group Inc. (Dallas/Fort Worth), announced in December 2013 it had signed agreements with Embraer S.A. to purchase 60 new 76-seat E175 regional jets, with options for up to 90 additional aircraft. With continued new aircraft deliveries over the next several years, American will have one of the most modern and efficient fleets in the industry.

The addition of these 20 American aircraft will increase the fleet size of Compass Airlines to 62 aircraft, all of which are either Embraer E175 or E170 aircraft.

The new E175s will offer American Airlines customers a more seamless transition from mainline to regional flights with 12 First Class seats, 20 Main Cabin Extra seats offering additional legroom and 44 seats in the Main Cabin. The aircraft will also feature modern cabin elements including in-flight Wi-Fi, full-size overhead bins, more spacious lavatories, leather seats and adjustable headrests. Powered by General Electric CF34 engines, the E175 also is one of the most fuel efficient 76-seat aircraft in the market today.

Compass Airlines, LLC is a wholly owned subsidiary of Trans States Holdings, Inc. Compass Airlines began commercial service in May 2007 as a NWA Airlink carrier with a mission to provide safe, reliable, cost-effective and customer-friendly service to the passengers it serves. Compass currently has more than 1,200 employees operating 36 Embraer E175 and six Embraer E170 aircraft as a Delta Connection carrier from its Minneapolis/St. Paul (MSP) and Detroit (DTW) hubs, as well as a maintenance facility in Louisville, Kentucky. Compass currently serves 57 cities, operates approximately 200 daily flights, and carries approximately 4 million passengers annually.

The Association of Flight Attendants (AFA) issued this terse statement as a reaction on behave of the Envoy Air FAs:

Envoy Air Flight Attendants, represented by the Association of Flight Attendants-CWA (AFA), issued the following statement after American Airlines management announced the placement of 20 new Embraer 175 regional jets with an industry competitor:

“The hard working professionals across our company have made the American Eagle brand the gold standard within our industry for over 25 years. We were promised a fresh start after bankruptcy, with a new look, new energy and, most of all, new airplanes. American Eagle (now Envoy) employees, whether represented by unions or not, selflessly gave the concessions demanded by management in order to secure these new airplanes and bring our company into a new era of prosperity after emerging from a very dark period in our history.

“What thanks have we received? Apparently NONE. The equipment is being sent to another company which had no connection to the financial restructuring in which we engaged to insure that our company would achieve the profitability it now enjoys – the same profitability which allows it to obtain this new aircraft. For both American Airlines and Envoy Air management to now turn their backs on our award-winning employees by providing no comment as to the future of our airline is unconscionable.

“The demoralizing effect of these misguided decisions continues to weigh heavily on our operation, while long term damage from the loss of in-house profits, loss of qualified pilots, and continued contraction of our aging fleet is quickly approaching critical mass.

“AFA calls upon management to do something very simple, something very American: Make it right. Honor your commitments. Take the high road. Give your 16,000 employees the tools required to return our company to the best-in-class leader we always have been. Now is the time to set Envoy Air on the correct course.”

Copyright Photo: Tony Storck/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) N406YX (msn 17000369) of fellow American Eagle carrier Republic Airlines (2nd) arrives at Philadelphia.

Delta Connection-Compass:

NWA Airlink-Compass:

American Eagle-Republic:

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:

Delta to start again the Dallas/Fort Worth-Los Angeles route on November 3

Delta Air Lines (Atlanta) will re-institute Dallas/Fort Worth-Los Angeles service on November 3. The restored route will be operated as a Delta Connection route with Embraer 175s according to Airline Route.

In addition, Delta continues to add feeder and long-range routes to the Seattle/Tacoma market in addition to what has already been reported. According to Airline Route, the carrier will add three new routes on December 20 adding further competition to Alaska Airlines (Seattle/Tacoma): Bozeman, Montana (ERJ 175), Kahului, Maui, Hawaii (757) and Los Cabos, Mexico (A319).

Copyright Photo: Bruce Drum/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) N608CZ (msn 17000195) of Compass Airlines taxies from the gate at Seattle-Tacoma International Airport (SEA).

Delta Air Lines (current):

Delta Connection-Compass 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):