Tag Archives: ERJ 190200LR

Air Dolomiti to operate Bergamo-Munich flights starting on June 2, 2014

Air Dolomiti (Verona), the Lufthansa Group’s Italian airline, will operate flights from Il Caravaggio International Airport in Bergamo Orio al Serio (near Milan) to Munich starting on June 2, 2014.

The new route will operate twice daily (except one flight a day on the weekends).

In other news, Air Dolomiti and Condor Flugdienst (Frankfurt) have agreed to work closely feeding Condor long-haul flights from Frankfurt and Munich from Italy according to airliners.de. Air Dolomiti operates from Ancona, Bari, Bologna, Florence, Genoa, Milan, Palermo, Pisa, Rome (Fiumicino), Turin, Trieste, Venice and Verona.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Air Dolomiti’s Embraer ERJ 190-200LR (ERJ 195) I-ADJS (msn 19000597) completes its final approach into the Frankfurt hub.

Air Dolomiti: AG Slide Show

 

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Flybe to cut another 500 jobs as it becomes profitable again in the first half

Flybe (Exeter) plans to cut another 500 jobs after it posted its first half-year profit in two years.

Read the full report from Reuters: CLICK HERE

The company issued this financial statement:

Results for the six months to September 30, 2013:

Flybe announces a significantly improved financial performance under its new management team.  In addition, a new phase of efficiency improvements announced today will secure a strong base for future growth.

Key financial highlights
      H1 2013/14£m          H1 2012/13£m               Change%
Total revenue under management * 477.3 396.3 20.4
Less: joint venture revenue (126.2) (55.5) 127.4
Group revenue 351.1 340.8 3.0
Adjusted profit/(loss) before tax, restructuring and surplus capacity costs and revaluation on USD aircraft loans ** + 12.2 (2.3)                     N/M
Adjusted profit/(loss) before tax and restructuring *** + 17.1 (1.6)                     N/M
Profit/(loss) before tax + 13.8 (1.6)                     N/M
Profit/(loss) after tax + 13.6 (1.6)                     N/M

*   Includes Flybe’s joint venture, Flybe Finland.

** Adjusted profit/(loss) before tax, restructuring and surplus capacity costs and revaluation on USD aircraft loans defined as profit/(loss) before tax, restructuring and surplus capacity costs of £4.1m (2012/13: £nil) and revaluation gains on USD aircraft loans of £5.7m (2012/13: £0.7m).  Surplus capacity costs represent the costs incurred in H1 2013/14 relating to capacity that is considered by management to be surplus as a result of the restructuring decisions.

***      Adjusted profit/(loss) before tax and restructuring defined as profit/(loss) before tax and restructuring costs of £3.3m (2012/13: £nil).

+   H1 2012/13 has been restated for the impact of adopting the revised requirements of IAS 19 Employee Benefits as detailed further in Note 2 to the condensed financial statements. The replacement of the interest cost and expected return on plan assets with a new interest charge on the net defined benefit liability led to a £0.3m increase in the reported loss for that period.

Results summary

1. First two phases of the Turnaround Plan on track to deliver savings of £40m this year and £45m in 2014/15.

2. A 20.4% increase to £477.3m (H1 2012/13: £396.3m) in revenue under management (including Flybe Finland, the joint venture with Finnair) largely driven by increased contract flying activity in Finland.

3. A 3.0% increase in group revenue to £351.1m.

4. A £13.8m profit before tax (H1 2012/13: loss of £1.6m).

5. A £10.5m operating cash inflow before increase in restricted cash and restructuring costs (H1 2012/13: £1.6m)

Operational highlights (H1 2013/14)

UK Airline:

–    6.2 million scheduled seats flown, in line with last year.

–    5.6% increase in passengers to 4.3 million.

–    3.6ppts increase in load factor to 68.6%.

–    0.9% increase in passenger revenue per scheduled seat to £50.35 (H1 2012/13: £49.92).

–    1.3% increase in total revenues to £328.2m.

–    1.3% decrease in costs per seat to £51.30.  On a constant currency and fuel price basis, costs per seat decreased by 3.1%.

–    4.7% increase in UK regional sector share for the Flybe brand to 55.1%.

Flybe Finland:

–    26.4% of Flybe’s revenue under management (H1 2013/14: £126.2m; H1 2012/13: £55.5m).

–    £110.6m contract flying revenue (H1 2012/13: £36.7m)

–    84.6% increase to 2.4 million in total seats flown, of which white label flying totalled 2.0 million (H1 2012/13: 0.8 million).

Turnaround update

Flybe aims to become the best local airline in Europe delivering unrivalled regional connectivity.

Flybe will have two engines of growth:

A regional branded airline giving a nimble and customer-friendly, scheduled service for both business and families.  This brings people together within a country and connects people in the regions to international carriers at metropolitan airports.

A regional white label model where Flybe will become the leading regional provider for mainstream European airlines.

The already announced Phase 1 and 2 cost savings are being successfully implemented.

Major management and organizational change: new Chairman and Chief Executive Officer have been appointed.  Senior executive appointments well advanced, including a new Chief Commercial Officer already in place.

Flybe’s operations have been reorganized into a single management structure.

An Immediate Action plan is being announced today and is already being implemented with three elements:

1.   Optimise configuration: rationalise route network, review fleet mix, remove surplus capacity and improve aircraft and crew utilisation.

2.   Reduce costs further: all aspects of the business are being reviewed to drive further savings.

3.   Improve commercialisation: optimise pricing and revenue management, refocus network development, strengthen route management, step change marketing impact and develop trading partnerships.

This will deliver further benefit of £7m this year and £26m next year with around 500 proposed redundancies and estimated one-off and surplus capacity costs of £14m this year plus a further £27m in 2014/15.

Finnair JV is now profitable; further improvements are being targeted by enhancing operational delivery, reducing scheduled risk flying losses and embedding ‘lean manufacturing’ techniques.

Update: According to Reuters, majority shareholder Rosedale Aviation Holdings has sold its entire 48.1 percent stake in the airline to institutional investors.

Read the full report: CLICK HERE

Copyright Photo: Antony J. Best/AirlinersGallery.com. Embraer ERJ 190-200LR (ERJ 195) G-FBEB (msn 19000057) lands at Southampton.

Flybe: AG Slide Show

AirEuropa to launch two new routes to Germany from Madrid

AirEuropa (Palma de Mallorca and Madrid) on March 31, 2014 will launch two new routes from Madrid to both Frankfurt and Munich per Airline Route. The new routes will be operated daily with Embraer 195s.

Copyright Photo: Paul Denton/AirlinersGallery.com. Embraer ERJ 190-200LR (ERJ 195) EC-LKX (msn 19000437) climbs away from Geneva.

AirEuropa: AG Slide Show

Flybe announces a two-year plan to return to profitability, 300 jobs may get axed

Flybe (Exter) today made a major announcement for a two-year plan to return the airline to profitability. The reorganization may lead to a loss of 300 jobs. Here is the full announcement:

  • As part of this announcement Flybe confirmed:
    • Medium term operational profit targets for the Group.
    • A revised strategy to focus on two key sectors of the market – its UK scheduled services business, and the growing European contract flying market.
    • Confirmation that there would be no change to its current route network, and that consumers will still enjoy the same choice of routes and airports.
    • A cost reduction plan for its UK business and associated support activities which targets cost reductions both internally and externally.
    • As part of the proposed cost reduction plan for the UK business, it is expected c300 roles will be made redundant.
    • The total annualised benefit of the cost reduction plan will reach £35m.
    • A review of the potential outsourcing of various support functions.
    • The establishment of a new Flybe Outsourcing Solutions business bringing together its contract flying, maintenance and training divisions across Europe into one customer offering.

A summary of the announcement is provided at the end of this release.

Effect on UK employed Staff

As a result of the cost reduction plan announced today, Flybe UK has commenced the consultation process which may lead to circa 300 proposed redundancies.  This would equate to approximately 10% of its current UK based employees.

It is expected that the majority of the proposed redundancies will, following consultation, come from Flybe’s Exeter HQ, Manchester and Newcastle.

Commenting on the plan, Flybe’s Chief Executive Jim French said: “Today’s restructuring plan for the airline has clear, two year profit targets which we believe are deliverable and realistic. A new, slimline business model for UK scheduled services underpins a turnaround which I expect will deliver a £3.00 per seat profit target in the medium term. Today’s announcement of a turnaround strategy for the UK business is a clear indication that Flybe has a plan not only to address the challenges we face, but also one to exploit the opportunities available, particularly in Europe.

“It is a matter of great regret that many valued and hard-working colleagues may leave the organisation and it was a decision I and the Board have not taken lightly ; it’s one we have tried to avoid and it is the first time in almost 30 years of business that we have had to take such action. However, faced with the brutal impact of a 160% rise in Air Passenger Duty (APD) over the past six years and the consequent 20% decline in domestic traffic over the same period, we have to recalibrate the business. There is no escape from the £68M per annum APD tax burden which Flybe has to pay as a result of increases successive governments have levied on the industry. Flybe now pays more than 18% of our ticket revenues to the government in APD, whilst other UK based carriers who operate a greater proportion of their business outside of the UK pay less than 6%.

Copyright Photo: Paul Denton. Embraer ERJ 190-200LR (ERJ 195) G-FBEL (msn 19000184) arrives at Geneva.

Flybe: AG Slide Show

Flybe logo-1

Route Map (routes from Southampton):

Please click on the map for the full-size view.

Please click on the map for the full-size view.

Lufthansa cancels its contract with Augsburg Airways, will launch Munich-Vancouver flights on May 16

Lufthansa (Frankfurt) has cancelled the regional feeder contract with the Augsburg Airways (Munich) effective on October 26, 2013.

The five Embraer ERJ 190-200s (ERJ 195s) assigned to Augsburg will be transferred to CityLine also on October 26, 2013.

The company was established in 1980 as Interot Airways. Revenue operations commenced in 1986. In 1996 the airline became Augsburg Airways. In 2003 Augsburg started operating as an Lufthansa Regional carrier. It was the last independent feeder operating for LH.

In other news, Lufthansa is expanding its long-haul services from its Munich hub and next year, for the first time, will offer a nonstop flight from Munich to Vancouver. From May 16, 2013, the new route to the largest city in British Columbia will be served daily with an Airbus A330. The service will complement Lufthansa’s daily flights from Frankfurt.

Read the full report about Augsburg from augsburger-allgemeine.de (in German) : CLICK HERE

Copyright Photo: Arnd Wolf. Augsburg Airways’ Embraer ERJ 190-200LR (ERJ 195) D-AEMD (msn 19000305) approaches the Munich hub for landing.

Lufthansa: 

AirEuropa is coming to Brussels on December 3

AirEuropa (Palma de Mallorca and Madrid) will add the Madrid-Brussels route on December 3. The new route will be operated twice-daily with Embraer ERJ 195s according to Airline Route.

Copyright Photo: Ton Jochems. Embraer ERJ 190-200LR (ERJ 195) EC-KYP (msn 19000281) in the special Ushuaia Ibiza beach club motif visits Amsterdam.

AirEuropa: 

AirEuropa is promoting the Ushuaia beach club on Ibiza with this logojet

AirEuropa (Palma de Mallorca) is promoting the Ushuaia beach club on the east coast of Ibiza, Spain with this new logojet. Oddly the beach club is named after the southern most city in Argentina, usually a very cold location in the Patagonia.

Copyright Photo: Pedro Baptista/Flyingphotos. Embraer ERJ 190-200LR (ERJ 195) EC-KYP (msn 19000281)  departs from Lisbon with the special markings.

Hot New Photos: 

AirEuropa: