Tag Archives: Inc.

United Airlines names Oscar Munoz as CEO to replace resigning Jeff Smisek

United Continental Holdings, Inc. (United Airlines-UAL) (Chicago) Nhas announced that it has named Oscar Munoz as president and chief executive officer. Munoz will also continue to serve on United’s board of directors. The board appointed Henry L. Meyer III, United’s lead independent director, to serve as non-executive chairman of the board of directors. The company also announced that Jeff Smisek has stepped down from his roles as chairman, president and chief executive officer, and as a director. These changes are effective immediately.

The airline continued:

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Henry Meyer, non-executive chairman of the board of directors of United Continental Holdings, Inc. said, “Oscar’s track record demonstrates that he has the right blend of strategic vision and strong leadership to continue United’s upward trajectory. United is well positioned to continue executing on its strategic plan to further improve performance and the value and service it provides to its customers. I’m honored to have been elected non-executive chairman by my fellow directors. The board thanks Jeff for his service to both United Airlines and Continental Airlines.”

“It is truly a privilege to serve as United’s CEO. United has an incredible opportunity for improving an experience that is essential to the vitality of global business and to the personal lives of millions of people, for innovation, and for earnings growth,” said Oscar Munoz, president and CEO of United. “In my years serving on the board, I have been impressed by the dedication and skill of my new coworkers. Together, we will make United the top-performing airline.”

Prior to joining United Airlines, Munoz served as president and chief operating officer of CSX Corporation, a premier transportation company. Munoz also served as a director at CSX. During Munoz’s tenure, CSX transformed itself into an industry leader in customer focus, reliability and financial performance. CSX was named one of Institutional Investor’s Most Honored Companies for a decade of excellent financial performance, including increasing its operating income by nearly 600%. Prior to joining CSX, Munoz served in various senior financial and strategic capacities at some of the world’s most recognized consumer brands, including AT&T, The Coca-Cola Company and Pepsico.

He has served on the board of directors for United Continental Holdings, Inc. since 2010 and served on the board of directors of Continental Airlines, Inc. since 2004. Munoz is active in several industry coalitions and philanthropic and educational organizations including the University of North Florida’s board of trustees and the PAFA advisory board of Vanderbilt University.

The company also announced that its executive vice president of communications and government affairs and its senior vice president of corporate and government affairs have stepped down. The departures announced today are in connection with the company’s previously disclosed internal investigation related to the federal investigation associated with the Port Authority of New York and New Jersey. The investigations are ongoing and the company continues to cooperate with the government.

The company’s internal investigation and the related circumstances do not raise any accounting or financial reporting concerns.

Meanwhile the Machinists Union welcomed the change:

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United Airlines announced Chief Executive Officer (CEO) Jeff Smisek resigned his position as CEO, president and chairman of the board of directors and named Oscar Munoz as new CEO.

“Jeff Smisek, Nene Foxhall, EVP of communications and government affairs and Mark Anderson, SVP of corporate and government affairs, have stepped down from their roles,” said new CEO Oscar Munoz in a letter to United employees. “The departures announced are in connection with the company’s previously disclosed internal investigation related to the federal investigation associated with the Port Authority of New York and New Jersey.”

“The dedicated, hard-working employees at United deserve better than the questionable leadership Jeff Smisek provided,” said General Vice President Sito Pantoja. “We look forward to working with new CEO Oscar Munoz, who we hope will respect the good people at United and provided them the tools to put their airline back on top.”

Under Smisek’s five-year tenure at United’s helm, the carrier has consistently lagged industry peers in operational and financial performance and has posted dismal customer satisfaction ratings.

Prior to joining United Continental Holdings board of directors in 2010, Munoz previously served as president and chief operating officer of CSX Corporation, a premier transportation company that employs 1,200 IAM members.

“Oscar Munoz worked well with the IAM during his 12 years at CSX,” continued Pantoja. “He supported progressive labor relations there and we look forward to working with him at United.”

United Continental Holdings board of directors also appointed Henry L. Meyer III as non-executive chairman of the board.

Mitsubishi Aircraft opens its new Seattle Engineering Center

Mitsubishi Regional Jet (MRJ)(Mitsubishi)(LRW)

Mitsubishi Aircraft Corporation opened and started full operations of the Seattle Engineering Center (SEC) in Seattle, Washington, an engineering arm of its subsidiary, Mitsubishi Aircraft Corporation America, Inc. The opening of a development center in Seattle, the global hub of the aviation industry, enables Mitsubishi Aircraft to tap professional expertise on aircraft development and to accelerate the development of the MRJ (Mitsubishi Regional Jet).

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Mitsubishi Aircraft held an opening ceremony on August 3 to celebrate the opening of the Center. The ceremony was attended by numerous distinguished guests, including Jay Inslee, Washington State Governor; Masahiro Omura, Consul General of Japan in Seattle and Lee Human, President, Aerospace Testing Engineering & Certification L.L.C. (AeroTEC), one of the partner companies of Mitsubishi Aircraft. Present from Mitsubishi Aircraft were Hiromichi Morimoto, President and Kenichiro Honda, Vice President, SEC, Mitsubishi Aircraft Corporation America.

SEC will work with AeroTEC, which has extensive experience and expertise, to accelerate the MRJ’s conformity activities and provide prompt support for flight tests in the U.S. that are scheduled to start in the second quarter of 2016 based at the Grant County International Airport at Moses Lake in Washington. SEC will be operated with approximately 150 members, including about 100 engineers recruited mainly in Seattle and about 50 engineers from Japan.

 

 

Alaska Air Group reports a record second quarter

Alaska Air Group (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported a record second quarter GAAP net profit of $234 million.

The group issued this report:

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Alaska Air Group, Inc., today reported second quarter 2015 GAAP net income of $234 million, or $1.79 per diluted share, compared to $165 million, or $1.19 per diluted share in the second quarter of 2014. Excluding the impact of mark-to-market fuel hedge adjustments of $6 million ($4 million after tax, or $0.03 per diluted share), the company reported record adjusted net income of $230 million, or $1.76 per diluted share, compared to adjusted net income of $157 million, or $1.13 per diluted share, in 2014.

“We’re pleased to report our 25th consecutive quarterly profit and our best quarterly result ever,” said CEO Brad Tilden. “I want to thank our employees for their hard work and for always putting our customers first. We are focused on running a strong and balanced company that will produce the right outcomes for all of the stakeholders who depend on us, not just this quarter but over the long-term.”

Financial Highlights:

  • Reported record second quarter net income, excluding special items, of $230 million, a 46% increase over the second quarter of 2014.
  • Reported adjusted earnings per share of $1.76 per diluted share, a 56% increase over the second quarter of 2014 and ahead of First Call analyst consensus estimate of $1.73 per share.
  • Earned net income for the second quarter under Generally Accepted Accounting Principles (GAAP) of $234 million or $1.79 per diluted share, compared to net income of $165 million, or $1.19 per diluted share in 2014.
  • Recorded $58 million of employee incentive pay in recognition of Air Group employees’ progress on meeting customer service, safety, operational and financial goals.
  • Generated record adjusted pretax margin in the second quarter of 25.7% compared to 18.3% in 2014.
  • Generated 20.9% adjusted pretax margin for the trailing 12-month period ended June 30, 2015, compared to 14.9% for the same period in the prior year.
  • Achieved trailing 12-month after-tax return on invested capital of 22.0% compared to 16.1% in the 12-month period ended June 30, 2014.
  • Repurchased 2.5 million shares of common stock for $160 million in the second quarter of 2015, and 4.1 million shares of common stock for $262 million during the first six months of 2015, representing 3.1% of the total shares outstanding at the beginning of the year.
  • Paid a $0.20 per-share quarterly cash dividend on June 4, 2015, a 60% increase over the dividend paid in the second quarter of 2014.

Read the full report: CLICK HERE

Copyright Photo: Ken Petersen/AirlinersGallery.com. Alaska Airlines Boeing 737-990 ER N471AS (msn 41703) with APB Split Scimitar Winglets lands in Anchorage.

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Hawaiian to acquire three ATR 72 freighters to operate under the ‘Ohana by Hawaiian brand

Hawaiian Holdings, Inc., parent of Hawaiian Airlines (Honolulu), today announced plans to acquire three ATR 72 turboprop aircraft in an all-cargo configuration to expand its interisland shipping services.  The new operation will launch in the first half of 2016, starting with flights between Honolulu International Airport (HNL) and Kona International Airport (KOA), Kahului Airport (OGG), Līhuʻe Airport (LIH) and Hilo International Airport (ITO), with well-timed connections from Hawaiian Airlines’ mainland and international network.

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The ATR 72 fleet can carry up to 18,000 pounds of cargo and will be able to handle five 88-by-108-feet aircraft pallets or up to seven LD3 containers, skidded cargo and oversized shipments. Express services for smaller shipments will also be available on its 160 daily B717 flights throughout the day.

Ohana by Hawaiian logo

The flights will be branded ‘Ohana by Hawaiian and operated by Empire Airlines, which also operates the 48-passenger ATR 42 turboprop service (above). The livery of the aircraft will feature the same kapa tail patterns created by Hilo-based artist Sig Zane and his son Kūha’o (below).

Ohana by Hawaiian Design 4

 

“Since launching the ‘Ohana by Hawaiian passenger operation in March 2014, we have established a track record of providing a reliable and efficient service for travel within the islands with an on-time arrival rate of 94 percent,” said Hadden Watt, managing director of ‘Ohana by Hawaiian. “We expect to deliver the same reliability and high-quality of service to our cargo customers for their interisland shipments.”

The new cargo operation will create more than 100 new Hawai’i-based jobs in various areas of air transportation including pilots, mechanics, ground handlers, sales, customer service and management positions.

Hawaiian Airlines was the first U.S. airline certified to ship cargo in 1942, and has provided high-quality overseas shipping and customer service to international customers, freight forwarders, carriers and many others in the industry for more than 70 years as the flagship carrier of the Pacific.

Top Copyright Photo: Ivan K. Nishimura/AirlinersGallery.com. Operated by Empire Airlines, ‘Ohana by Hawaiian-branded ATR 42-500 N804HC (msn 623) taxies at the Honolulu base.

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Alaska Airlines to be Gevo’s launch partner of renewable alcohol-to-jet fuel

Alaska (2014) logo

Alaska Airlines (Seattle/Tacoma) is partnering with fuel supplier Gevo for biofuel. Gevo issued this release statement:

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Gevo, Inc. announced today that it has signed a strategic alliance agreement with Alaska Airlines (Seattle/Tacoma) to purchase Gevo’s renewable jet fuel and fly the first ever commercial flight on alcohol-to-jet fuel (ATJ).

The single demonstration flight is expected to occur after Gevo receives ASTM International certification for its fuel, sometime in mid to late 2015. Gevo has been working through the rigorous ASTM process for six years, which includes extensive engine testing and data analysis by all of the major original equipment manufacturers to establish the specification for this drop in fuel. Once approved, this fuel can be seamlessly integrated into the distribution infrastructure and onto commercial aircraft.

Gevo’s patented ATJ is a clean burning, homegrown, drop-in jet fuel, which has the potential to deliver aviation biofuels at scale and at competitive cost.

Alaska Airlines was the first U.S. airline to fly multiple commercial passenger flights using a biofuel from used cooking oil. The carrier flew 75 flights between Seattle and Washington, D.C. and Seattle and Portland in November 2011. The airline has set a goal to using sustainable aviation biofuel at one or more of its airports by 2020.

Copyright Photo below: Michael B. Ing/AirlinersGallery.com. Boeing 737-890 N557AS (msn 35176) with APB Split Scimitar Winglets departs from Los Angeles.

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Florida West to be acquired by Worldwide Air Logistics Group, will become a sister airline of Southern Air

Florida West International Airways (2nd) (Miami) is being acquired by the Worldwide Air Logistics Group and will become a sister airline of Southern Air (2nd) (Cincinnati). Southern Air Holdings issued this statement:

Southern Air Holdings, Inc. has announced that its affiliate, Worldwide Air Logistics Group, Inc., will expand and diversify its ACMI and CMI air cargo service offerings through the acquisition of new fleet platforms, expanded markets and growth of existing operations.

Southern Air Inc., a critical and growing provider of airlift services for DHL Express and other customers, will continue its operations as a subsidiary of Worldwide. Southern Air’s headquarters will remain in Florence, Kentucky.

As part of its efforts to expand service capacity, Worldwide also announced its agreement to acquire Florida West International Airways, Inc., a leading provider of 767-300 ACMI air cargo services. Florida West operates scheduled and charter services, primarily in Latin America, the Caribbean and the U.S. for its primary customer LAN Cargo. Florida West is based in Miami, Florida, where its headquarters will remain. Worldwide’s acquisition of Florida West is subject to regulatory approval.

Southern Air and Florida West will remain separate air carrier operating companies. Each carrier will continue to deliver on a standalone basis the outstanding performance and superior service their customers have grown to expect.

Copyright Photo: Brian McDonough/AirlinersGallery.com. The second Florida West operates Boeing 767-300F freighters. Boeing 767-346F N411LA (msn 35818) departs from Miami International Airport.

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GoJet Airlines to expand its Delta Connection contract, will operate seven Bombardier CRJ900s

GoJet Airlines (St. Louis), a wholly owned subsidiary of Trans States Holdings, Inc., has announced that it has entered into an agreement with Delta Air Lines to operate seven Bombardier CRJ900 aircraft under the Delta Connection regional service brand. Deliveries are slated to begin in June of 2015 and continue through October.

The addition of these CRJ900 aircraft continues Delta’s domestic fleet optimization plan focused on reducing 50-seat regional jets while improving the overall customer experience.

GoJet Airlines currently operates a fleet of 47, two-class CRJ700 aircraft under the United Express and Delta Connection brands, of which 22 are in service for Delta. GoJet has provided regional service for Delta under the Delta Connection brand since 2011.

GoJet serves over 4 million passengers annually, with more than 220 daily flights providing service to over 60 destinations.

Copyright Photo: Ken Petersen/AirlinersGallery.com. Bombardier CRJ700 (CL-600-2C10) N367CA (msn 10069) lifts off the runway at New York’s LaGuardia Airport.

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