International Airline Group’s (IAG) (British Airways, Iberia and Vueling Airlines) (London) CEO Willie Walsh has stated the politicians of Britain lack the “character” to push for a third runway at London’s crowded Heathrow Airport (LHR) according to a report by The Guardian. According to Walsh the expansion of LHR is a “lost cause”.
Top Copyright Photo: Ariel Shocron/AirlinersGallery.com. Terminal 5 at London Heathrow Airport. T5 was opened in 2008, the main building is the largest free-standing structure in the United Kingdom. Terminal 5 is currently used exclusively by IAG carriers, especially British Airways and Iberia. Prior to March 2012, the terminal was used exclusively by British Airways. The terminal is designed to ultimately handle 35 million passengers a year. Despite this new terminal, the airport cannot expand without a third runway.
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Video: The three options for a third runway at LHR offered by the airport:
Below Copyright Photo: Dave Glendinning/AirlinersGallery.com. LHR is the main hub of British Airways.
Bottom Copyright Photo: Richard Vandervord/AirlinersGallery.com. A crowded ramp scene at LHR in the past.
IAG (British Airways and Iberia) (London) has decided to convert eight A330-200 options, previously announced, into firm orders for Spainโs flag carrier Iberia, which will become a new operator of the A330-200. The aircraft will be delivered from the end of 2015 and will be equipped with GE CF6 engines. Iberiaโs all Airbus fleet already includes eight A330-300s.
Iberia today operates an all Airbus fleet, including 13 A319, 12 A320, 18 A321, 8 A330-300, 8 A340-300 and 17 A340-600. On August 1, 2014, the new A330s were announced alongside an order for eight Airbus A350-900 aircraft. In total they will replace 16 A340 family aircraft in Iberiaโs long-haul fleet. The airline flies to more than a 100 destinations in 38 countries.
International Airlines Group (IAG) (British Airways, Iberia and Vueling Airlines) (London) reported second quarter net income of โฌ280 million ($376 million) up from โฌ127 million ($170.5 million) net income for the same period a year ago. This is the best second quarter results since 2007.
International Airlines Group (IAG) (London) has converted 20 A320neo options into a firm order. These aircraft are currently intended to replace 21 shorthaul British Airwaysย (London) aircraft.
British Airways already operates 120 Airbus single aisle aircraft covering the full Family range from the smallest A318 to the largest A321.
Previously in August 2013, IAG announced that, as part of a Vueling order for up to 120 Airbus A320 family aircraft, it had also secured 100 A320neo options.
To date, firm orders for the NEO have reached over 2,800 aircraft representing a 60 per cent share market share in its category.
International Consolidated Airlines Group (IAG) (British Airways, Iberia and Vueling Airlines) (London) today (May 9, 2014) presented Group consolidated results for the first quarter and the three months to March 31, 2014.
IAG period highlights on results:
. First quarter operating loss โฌ150 million ($206.3 million) (2013: operating loss of โฌ278 million – $382.3 million) before exceptional items
. Revenue for the quarter up 6.7 per cent to โฌ4,203 million, up 7.6 per cent at constant currency
. Non-fuel costs up 3.8 per cent, up 4.8 per cent at constant currency
. At constant currency, first quarter passenger unit revenue down 1.4 per cent (excluding Vueling down 0.5 per cent) and non-fuel unit costs down 6.2 per cent (excluding Vueling down 4.2 per cent)
. Fuel unit costs for the quarter down 8.9 per cent, 7.4 per cent at constant currency
. Cash of โฌ4,004 million at March 31, 2014 was up โฌ371 million on 2013 year end
. Adjusted gearing remains at 50 per cent
Willie Walsh, IAG Chief Executive Officer, said:
“We’re pleased that our quarterly operating loss has reduced significantly from โฌ278 million last year to โฌ150 million, especially as Vueling’s quarterly losses were not included last year as they weren’t in the Group. At constant currency, revenue was up 7.6 per cent and non-fuel costs rose 4.8 per cent.
“Iberia has almost halved its losses from quarter one last year with an operating loss of โฌ111 million compared to โฌ202 million. The airline continues to benefit from restructuring and these figures don’t reflect the impact of recent pay and productivity agreements which took effect in April. While the restructuring remains work in progress, Iberia is gradually resuming some routes including longhaul services to Santo Domingo and Montevideo.
“British Airways made an operating loss of โฌ5 million in the quarter, compared to a โฌ72 million operating loss in 2013. The airline has increased capacity within a controlled cost environment and benefited from the efficiency of its new Airbus A380 and Boeing 787 aircraft.
“Vueling made an operating loss of โฌ30 million and has managed to keep its losses flat while growing capacity. The airline continues to grow with its main focus in southern Europe”.
Copyright Photo: Antony J. Best/AirlinersGallery.com. British Airways’ Airbus A380-841 G-XLEB (msn 121) approaches the runway at London’s Heathrow Airport.
International Airline Group (IAG) (London) CEO Willie Walsh discusses British Airways‘ (London) commitment to building the world’s first facility to convert landfill waste into jet fuel.
This ground-breaking fuel project is set to revolutionise the production of sustainable aviation fuel. Approximately 575,000 tons of post-recycled waste, normally destined for landfill or incineration, will instead be converted into 120,000 tons of clean burning liquid fuels using Solena’s innovative integrated technology.
British Airways has made a long-term commitment to purchase all 50,000 tons per annum of the jet fuel produced at market competitive rates.
Willie Walsh, chief executive of British Airways’ parent company IAG, said: “We are always striving to reduce our impact on climate change and this first-of-its-kind project marks a significant step for the aviation industry. The construction of the GreenSky London fuel facility at Thames Enterprise Park will lay the foundations for British Airways to reduce its carbon emissions significantly. The sustainable jet fuel produced each year will be enough to power our flights from London City Airport twice over with carbon savings the equivalent of taking 150,000 cars off the road.”
International Airlines Group (IAG) (British Airways, Iberia and Vueling Airlines) (London and Madrid) today (February 28, 2014) presented Group consolidated results for the year to December 31, 2013.
IAG period highlights on results:
Fourth quarter operating profit โฌ113 million (2012: operating loss of โฌ40 million) before exceptional items
At constant currency and excluding Vueling and one-offs, fourth quarter passenger unit revenue up 2.7 per cent, and non-fuel unit
costs down 2.7 per cent
Operating profit for the year to December 31, 2013 of โฌ770 million (2012: operating loss of โฌ23 million) before exceptional items
Revenue for the year up 3.1 per cent to โฌ18,675 million and passenger unit revenue for the year up 0.6 per cent (3.7 per cent at constant currency)
Fuel costs for the year down 2.5 per cent to โฌ5,951 million (2012: โฌ6,101 million). Fuel unit costs down 5.0 per cent at constant currency
Non-fuel costs before exceptional items for year down 0.7 per cent at โฌ11,954 million. Non-fuel unit costs down 5.6 per cent, down 2.7 per cent at constant currency
Cash of โฌ3,633 million at December 31, 2013 was up โฌ724 million on 2012 year end (December 2012: โฌ2,909 million).
Adjusted gearing down 1 point to 50 per cent
Willie Walsh, IAG chief executive, said:
โIn 2013, we strengthened the Group by acquiring Vueling, embarking on Iberiaโs transformation and enhancing British Airwaysโ revenue performance. This has led to a strong financial recovery and return to profitability with a turnaround of nearly โฌ800 million. Our operating profit was โฌ770 million before exceptional items, with passenger revenue up 5.8 per cent and non-fuel costs down 0.7 per cent.
โBritish Airways continued its solid revenue performance this year and weโre seeing cost improvements, resulting in an operating profit of โฌ762 million. This is the first full year that itโs benefited from the additional Heathrow slots and greater network flexibility created by bmiโs integration. Both the A380 and Boeing 787 were introduced into the airlineโs fleet successfully. The new aircraftsโ economic and environmental performance has been excellent and customers love them.
โIberia has made huge progress on cost control as its restructuring takes shape and great credit should be given to all those involved. It has reduced its losses in the year, reporting an operating loss of โฌ166 million. The recent pay and productivity agreements between Iberia and its pilot and cabin crew unions are key to reducing the airlineโs costs further and providing the foundation for profitable growth.
โVueling is a great asset and provides a new cultural dimension to IAG. The airline reported an operating profit of โฌ168 million from April 2013, when we acquired it, and expanded its network across continental Europe. To increase capacity while improving profit margins is a tremendous achievement and underlines Vuelingโs value to the Group.
โWe have shown strong financial management this year. Despite buying Vueling and increasing our capital expenditure, cash was up โฌ724 million versus last year and adjusted gearing was down 1 point to 50 per cent.
โQuarter 4 saw an improved financial performance from all our airlines and we are reporting an operating profit of โฌ113 million before exceptional items. Passenger revenue was up 4.0 per cent and non-fuel costs were down 4.1 per centโ.
Trading outlook:
In 2014 we expect to make steady progress towards our 2015 Group operating profit target of โฌ1.8 billion, with relatively flat unit revenue growth, and margin expansion driven by falling unit costs.
Copyright Photo: Keith Burton/AirlinersGallery.com. Vueling has been a good buy for IAG. Formerly operated by Belle Air Europe, Airbus A320-214 EI-LIS (msn 3492) has been repainted at Southend.
Atlas Air Worldwide Holdings, Inc. (Atlas Air) (New York) has announcedย it intends to pursue new ACMI (aircraft, crew, maintenance and insurance) placement opportunities for three 747-8 Freighter aircraft currently operated for British Airways plc by Atlas Air Worldwideโs 49%-owned UK subsidiary, Global Supply Systems Limited (GSS).
The action follows notice from British Airways, a unit of International Consolidated Airlines Group, S.A., regarding British Airwaysโ strategic decision to exit dedicated cargo-freighter service and to return the aircraft to GSS in April 2014 pursuant to the terms of the existing ACMI agreement between the parties.
Effective with the termination of the agreement, the three 747-8Fs will be redelivered to the company by GSS. Through GSS, the company also will receive contractual early termination fees from British Airways.
Meanwhile Qatar Airways (Doha) will operate five Boeing 777F freighter flights between Hong Kong and London for IAG Cargo (British Airways) starting on May 1. IAG Cargo issued this statement:
IAG Cargo has announced it has signed a long-term commercial agreement with Qatar Airways to purchase capacity on Qatar Airways-operated air cargo freighters, effective from May 1, 2014.
Qatar Airways will operate five Boeing 777F flights a week between Hong Kong and London on behalf of IAG Cargo, providing continuity of service for IAG Cargo customers.
The agreement marks a transition for IAG Cargo and follows the company’s decision to transfer freighter operations from its current provider, Global Supply Systems.
IAG Cargo connects 350 destinations worldwide, serving the world’s economic hubs with cargo-friendly wide-bodied planes. Through its Constant Climate network, it has one of the largest networks globally for handling temperature-sensitive air cargo.
Qatar Airways is already a partner with IAG through the oneworld global alliance which it joined in October 2013. The airline is taking delivery of a further three Boeing 777F aircraft during 2014.
Top Copyright Photo: Rainer Bexten/AirlinersGallery.com. This decision will end British Airways World Cargo and Global Supply Systems. GSS operatedย Boeing 747-87UF G-GSSD (msn 37562) in British Airways World Cargo colors departs graceful from Cologne/Bonn.
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Video: Flying the Boeing 747-800F freighter:
Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 777-FDZ A7-BFA (msn 36098) of Qatar Airways Cargo taxies at Amsterdam.
International Airlines Group (IAG) (London) has secured firm orders and options for up to 220 Airbus A320 family short-haul aircraft – up to 120 of these for its subsidiary Vueling Airlines (Barcelona). The new aircraft will enable the airline to replace some of its existing Airbus A320 fleet and expand its business.
The Vueling agreement comprises 62 firm orders – 30 A320ceo and 32 A320neo – plus 58 options. The firm orders will be delivered to Vueling between 2015 and 2020.
In addition, IAG has secured 100 A320neo options which could be used for any of the airlines in the Group –ย British Airways, Iberia or Vueling – for aircraft replacement requirements.
IAG chief executive,ย Willie Walsh, said: “Vueling has managed to successfully expand its business profitably by targeting both growth markets and those areas where weak competitors are reducing capacity. These new aircraft will enable Vueling to continue that expansion and replace some of its older fleet with modern, fuel efficient aircraft, leading to further unit cost reductions.
“The benefits that the merger brings to all our airlines are highlighted once again. In addition to the Vueling order, we have also been able to secure a further 100 A320neo options for all the airlines in the Group”.
The Vueling firm orders are subject to approval by IAG’s shareholders. This order will be reviewed alongside the recent IAG long-haul orders for Boeing 787s and Airbus A350s, at a shareholder meeting later this year.
Copyright Photo: Rolf Wallner/AirlinersGallery.com. The pictured Airbus A320-232 EC-LVT (msn 5612) with Sharklets was handed over to Vueling on May 31, 2013.
British Airways (London) brought its new Airbus A380 to Frankfurt (above) on August 2 as the flag carrier continues to test out the new type on its short haul European routes before it is introduced on longer international routes.
In other news, parent International Airline Group (IAG) lost $43.7 million in the first half of 2013. However IAG had a good second quarter as it managed to cut losses at Iberia in the second quarter to $39.7 million. IAG has cut 1,700 jobs at Iberia (Madrid) and plans to cut another 1,700 by 2015.
IAG issued this financial statement:
International Consolidated Airlines Group (IAG) presented Group consolidated results for the six months to June 30, 2013.
IAG period highlights on results:
Second quarter operating profit โฌ245 million (2012: loss โฌ4 million) before exceptional items, based on strong passenger unit revenues and non-fuel unit cost improvements
Before Vueling at constant currency, second quarter passenger unit revenue up 4.8 per cent and non-fuel unit costs down 0.2 per cent
Operating loss for the half year โฌ33 million (2012: loss โฌ253 million) before exceptional items
Revenue for the half year up 2.1 per cent to โฌ8,707 million including 1.7 per cent adverse currency impact
Passenger unit revenue for the half year up 2.8 per cent (4.6 per cent at constant currency), on capacity increase ofย 1.2 per cent
Fuel costs for the half year down 3.7 per cent to โฌ2,864 million (2012: โฌ2,973 million). Fuel unit costs down 4.7 per cent at constant currency
Non-fuel costs before exceptional items for the half year up 1.1 per cent at โฌ5,876 million. Non-fuel unit costs down 0.2 per cent, up 0.9 per cent at constant currency
Cash โฌ3,627 million at June 30, 2013, up โฌ718 million including โฌ549 million of Vueling cash
Adjusted gearing up 3 points to 54 per cent including Vueling
Willie Walsh also stated subsidiary Vueling Airlines (Barcelona) would be expanding again and would be taking on a larger role in intra-European routes. Higher-cost Iberia will be reducing its presence in Europe.
Copyright Photo: Bernhard Ross/AirlinersGallery.com. British Airways’ Airbus A380-841 G-XLEA (msn 095) taxies to the gate at Frankfurt.
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Video: British Airways has introduced this new “A Ticket to Visit Mum” video for the Indian market:
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