Tag Archives: Inc.

Horizon Air orders another Bombardier Q400, Bombardier to maintain Horizon’s 52 Q400s

Bombardier Aerospace (Montreal) announced today that Horizon Air Industries, Inc. (Horizon Air) (Alaska Horizon) (Seattle/Tacoma) has signed a firm purchase agreement for one Bombardier DHC-8-402 (marketed as the Q400 NextGen) turboprop airliner. The airline retains its options on another seven Q400 NextGen aircraft as announced previously. Additionally, Bombardier and Horizon Air confirmed they have signed a five-year heavy maintenance agreement whereby Bombardier will perform heavy maintenance tasks for the airline’s fleet of 52 Q400 aircraft at Bombardier’s service centre in Tucson, Arizona.

Based on the list price of the Q400 NextGen aircraft, the aircraft agreement is valued at approximately $32.6 million US.

Established in 1981, Horizon Air was acquired in 1986 by Alaska Air Group, Inc., the parent company of Alaska Airlines. At its start, the airline operated two aircraft and served three destinations in Washington state. Today, Horizon flies 51 76-seat Q400 aircraft on behalf of Alaska Airlines and serves 43 cities in the western United States, Canada and Mexico.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N407QX (msn 4049) in the special University of Oregon Ducks livery prepares to land at Los Angeles International Airport (LAX).

Alaska Horizon:

Horizon Air:

The new Eastern Air Lines signs a MOU for 20 Mitsubishi MRJ90s

Mitsubishi Aircraft Corporation announced today that it has signed a Memorandum of Understanding (MOU) for an order for twenty firm MRJ90 with purchase rights to an additional twenty MRJ90s with the Eastern Air Lines Group, Inc. (Eastern Airlines 2nd) (Miami). Based on this MOU, both companies will move forward to conclude a definitive agreement in the near future. Deliveries are scheduled to commence in 2019.

Eastern previously stated they had ordered the Boeing 737-800 in order to start operations. The proposed airline is still in the FAA certification process.

Edward J. Wegel, Eastern Air Lines Group President and CEO said, “We are extremely impressed with the operating cost benefits of the MRJ with the geared turbofan engine, which reduces seat mile costs almost to the level of current 130 – seater aircraft. This provides an excellent scheduling and route network advantage to Eastern as we look to add a second fleet type within five years.”

Thus far, 325 MRJ are on order, including 25 (15 firm, 10 option) from All Nippon Airways Co., Ltd., 100 (50 firm, 50 option) from Trans States Holdings, Inc. and 200 (100 firm, 100 option) from SkyWest, Inc.

The new Eastern orders 10 Boeing 737-800s

Eastern Air Lines Group, Inc. (2nd) (Miami) has signed an initial order and placed deposits with the Boeing Company for ten (10) firm Next Generation 737-800 aircraft and purchase rights for ten (10) Boeing MAX 8 aircraft.

“Eastern is extremely honored and privileged to be in business with Boeing once again. Eastern’s strong relationship with Boeing dates back to the 1930’s, and later Eastern was the first airline to order and operate both the Boeing 727 and 757 aircraft. We will now proudly have the Boeing 737 Next Generation, and eventually the MAX aircraft, as our fleet standard,” said Edward J. Wegel, Eastern’s President and CEO.

Image: Eastern Air Lines Group.

Eastern Airlines (1st):

Cargojet Airways leases two Boeing 767-200 ERF freighters from Air Transport Services Group

Air Transport Services Group, Inc. (Wilmington, Ohio), the sister company of ABX Air and ATI, has announced it has signed a new agreement with Cargojet Airways (Hamilton, Ontario), Canada’s cargo airline, to lease two Boeing 767-200 ER freighters.

Cargojet currently dry-leases two Boeing 767-200 freighters from ATSG’s subsidiary Cargo Aircraft Management Inc. (CAM) under long-term agreements. Cargojet has signed agreements to dry-lease an additional two Boeing 767-200 freighters from CAM, for up to three years. The first aircraft is expected to be delivered by the end of the second quarter, with the second aircraft delivering early in the third quarter.

Cargojet is currently in the process of a fleet renewal plan. Leasing these two additional 767-200 freighters is part of the company’s current growth strategy. The cargo airline is gearing up its fleet for the upcoming Canada Post/Purolator contract. The airline is also phasing out its Boeing 727 freighter fleet, one of the last operators of the trijet in North America.

Copyright Photo: Reinhard Zinabold/AirlinersGallery.com. Formerly operated by American Airlines, Boeing 767-223 (F) C-FMCJ (msn 22316) is pictured landing at the Hamilton base.

Cargojet:

AmeriJet to start a new cargo operation at Rickenbacker International Airport on July 7

AmeriJet International, Inc. (Fort Lauderdale/Hollywood and Miami) has announced its selection of Rickenbacker International Airport as one of its key air cargo hubs connecting eleven cities within the U.S.. Amerijet continues to spread its wings and has signed a long-term lease agreement with the Rickenbacker Airport for a 20,000 square foot facility, including five loading dock doors, located at 2566 Jerrie Mock Ave, Columbus, Ohio 43217. Service from Rickenbacker starts on July 7, with dedicated Boeing 767 wide body freighter service for intercontinental and domestic freight coast to coast.

AmeriJet International, Inc. is a full-service multi-modal transportation and logistics provider, offering U.S. Domestic and International, scheduled all-cargo transport via land, sea, and air. AmeriJet connects over 600 destinations worldwide, providing global transportation solutions for customers throughout the Americas, Mexico, the Caribbean, Europe, Asia, and the Middle East.

Schedules from the Miami hub: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. Ex-Delta Boeing 767-232 (F) N743AX (msn 22218) arrives back at the Miami cargo hub.

AmeriJet International:

Service Area Map:

Company Video:

Spirit Airlines’ adjusted first quarter net income increases 15.4% to $37.8 million

Spirit Airlines, Inc. (Fort Lauderdale/Hollywood) today reported first quarter 2014 financial results.

Adjusted net income for the first quarter 2014 increased 15.4 percent to $37.8 million ($0.52 per diluted share) compared to $32.8 million ($0.45 per diluted share) for the first quarter 20131. GAAP net income for the first quarter 2014 was $37.7 million ($0.51 per diluted share) compared to $30.6 million ($0.42 per diluted share) in the first quarter 2013.

For the first quarter 2014, Spirit achieved an adjusted pre-tax margin of 13.7 percent compared to 14.4 percent over the same period in 20131. On a GAAP basis, pre-tax margin for the first quarter 2014 was 13.7 percent compared to 13.4 percent in the first quarter 2013.

Spirit ended the first quarter 2014 with $544.0 million in unrestricted cash.

Spirit’s return on invested capital (before taxes and excluding special items) for the twelve months ended March 31, 2014 was 31.2 percent. See “Calculation for Return on Invested Capital” table below for more details.

“During the first quarter, our team did a great job serving our customers while overcoming the challenges caused by numerous severe winter storms and managing to the new crew duty and rest rules. Our solid operational and financial performance in the first quarter is a great start to the year and provides a firm foundation as we grow our business and bring our low fares to more people in more places,” said Ben Baldanza, Spirit’s Chief Executive Officer.

Revenue Performance

For the first quarter 2014, Spirit’s total operating revenue was $438.0 million, an increase of 18.2 percent compared to the first quarter 2013. The increase was primarily driven by our growth in flight volume. In the first quarter 2014, Spirit had 256 weather-related flight cancellations compared to 59 in the first quarter 2013, which negatively impacted revenue for the quarter.

Total revenue per available seat mile (“RASM”) for the first quarter 2014 was 11.57 cents, a decrease of 2.4 percent compared to the first quarter 2013. Average stage length for the first quarter 2014 increased 6.3 percent year over year, contributing an estimated 3.0 percentage point decline in RASM. In the first quarter 2014, RASM was further impacted by an estimated 1.5 percentage points due to the calendar shift of Easter occurring in April this year compared to in March last year.

Passenger flight segment (“PFS”) volume for the first quarter 2014 grew 17.9 percent year over year, and the Company’s load factor for the first quarter 2014 increased 1.8 points year over year. Total revenue per PFS for the first quarter 2014 increased 0.3 percent year over year to $134.20.

Cost Performance

Total operating expenses for the first quarter 2014 increased 17.9 percent year over year to $378.0 million on a capacity increase of 21.0 percent.

Spirit reported first quarter 2014 cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) of 6.06 cents, an increase of 0.3 percent compared to the same period last year. An increased number of scheduled maintenance events resulted in higher depreciation and amortization expense and higher maintenance, material and repairs expense per ASM. These expenses were partially offset by improved operational reliability, resulting in lower passenger re-accommodation expense (recorded within Other operating expense) per ASM. The Company also benefited from lower aircraft rent per ASM.

Selected Balance Sheet and Cash Flow Items

As of March 31, 2014, Spirit had $544.0 million in unrestricted cash and cash equivalents, no restricted cash, no debt on its balance sheet, and total shareholders’ equity of $809.4 million.

In the first quarter 2014, Spirit incurred capital expenditures of $4.1 million, paid $73.2 million in pre-delivery deposits for future deliveries of aircraft, net of refunds, and recorded an increase of $14.7 million in maintenance deposits, net of reimbursements.

Fleet

In the first quarter 2014, Spirit took delivery of two new A320 aircraft, ending the quarter with 56 aircraft in its fleet. During the quarter, the Company signed an amendment to its aircraft purchase agreement with Airbus; changes include the conversion of five (5) A320 ceo aircraft to A321 ceo aircraft, the conversion of five (5) A320 neo aircraft to A321 neo aircraft, the acceleration of one (1) A321 ceo aircraft from 2016 to 2015, and the deferral of two (2) A320 ceo aircraft from 2017 to 2018.

First Quarter 2014 and Other Current Highlights

• Added/announced new service between (service start date):

– Minneapolis-St. Paul and Houston (5/1/14)2
– Minneapolis-St. Paul and Baltimore/Washington (5/1/14)2
– Chicago O’Hare and Oakland/San Francisco (5/1/14)
– Minneapolis-St. Paul and Detroit (5/22/14)2
– Chicago O’Hare and Baltimore/Washington (5/22/14)2
– Chicago O’Hare and Portland, OR (5/22/14)2
– Fort Lauderdale and New Orleans (8/1/14)
– Houston and New Orleans (8/1/14)
– Houston and Atlanta (8/1/14)
– Kansas City and Chicago (8/7/14)
– Kansas City and Dallas/Fort Worth (8/7/14)
– Kansas City and Detroit (8/7/14)
– Kansas City and Las Vegas (8/7/14)
– Kansas City and Houston (8/8/14)
– Fort Lauderdale and Houston (9/3/14)
– Houston and San Diego (9/3/14)

• Maintained its commitment to offer low fares to its valued customers; average ticket revenue per passenger flight segment for the first quarter 2014 was $77.79 with total revenue per passenger flight segment of $134.20.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A319-132 N506NK (msn 2490) departs the runway at Fort Lauderdale-Hollywood International Airport (FLL).

Spirit Airlines:

Hawaiian Holdings reduces its first quarter net loss to $5.1 million

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), today reported its financial results for the first quarter of 2014.
Operating income grew to $10.0 million in the first quarter compared to an operating loss of $11.9 million in the prior year period.

GAAP net loss in the first quarter of $5.1 million or $(0.10) per diluted share compared to a loss of $17.1 million in the prior year period or $(0.33) per diluted share.

Adjusted net loss, reflecting economic fuel expense, in the first quarter of $0.9 million or $(0.02) per diluted share compared to $14.8 million in the prior year period or $(0.29) per diluted share.

Unrestricted cash, cash equivalents and short-term investments of $479 million compared to $438 million in the prior year period.

Liquidity and Capital Resources

As of March 31, 2014 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $479 million.

Available borrowing capacity of $69.5 million under Hawaiian’s Revolving Credit Facility.

Outstanding debt and capital lease obligations of approximately $940 million consisting of the following:

$570 million outstanding under secured loan agreements to finance a portion of the purchase price for nine Airbus A330-200 aircraft.

$150 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.

$108 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.

$34 million outstanding under floating rate notes for two Boeing 767-300 ER aircraft (above).

$78 million of outstanding Convertible Senior Notes.

Hawaiian Airlines:

American Eagle Airlines officially becomes Envoy Air

American Eagle Airlines, Inc. (2nd) (Dallas/Fort Worth) yesterday (April 15) officially changed its name to Envoy Air, Inc.

Envoy Air Inc. is a wholly owned subsidiary of American Airlines Group (Dallas/Fort Worth) operating more than the 220 aircraft on about 1,300 daily flights to more than 170 destinations. The company’s more than 14,000 employees provide regional flight service to American Airlines under the American Eagle brand and livery and ground handling services for approximately 15 airlines, including American.

The company was founded in 1998 as American Eagle Airlines, Inc. following the merger of several smaller regional carriers to create one the largest regional airlines in the world. Envoy is headquartered in Fort Worth, Texas with hubs in New York, Chicago O’Hare, Miami, Dallas/Fort Worth and Los Angeles. On April 15, 2014 the company changed its name to Envoy Air, Inc to distinguish the company for the American Eagle brand, under which several carriers operate regional flight service for American.

The carrier currently operates 47 Bombardier CRJ700s (CL-600-2C10s), 58 Embraer ERJ 140s and 118 Embraer ERJ 145s.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier CRJ700 (CL-600-2C10) N511AE (msn 10107) of Envoy Air departs from Los Angeles International Airport.

American Eagle-Envoy Air:

Buzz Airways to replace Southwest Airlines at Branson, Missouri

Branson Airport (Branson, Missouri) has released this statement:

Branson Airport (BKG) is pleased to announce the arrival of Buzz Airways service to both Chicago (Midway) and Houston (Hobby) beginning June 12, 2014. Fares begin at $99.00 each way including taxes. Flights will operate in each market six days per week.

The new flights by Buzz will replace the service currently offered on Southwest Airlines (Dallas) that is slated to end June 8. The flight schedule has been designed to allow customers to book separate tickets on Southwest in order to connect to and from other popular gateways.

Corporate Flight Management, Inc. d/b/a Buzz Airways (CFM) is a diverse aviation services company that includes Part 135 and 91 charter and management services, three Fixed Base Operations, a FAR Part 145 certified repair facility, an aircraft sales division, and FAR 141 pilot and maintenance training.

Buzz Airways will reportedly operate Jetstream 41 aircraft on the two routes.

Island Air will again operate the Bombardier Q400, orders two

Hawaii Island Air, Inc. (Island Air) (Honolulu) has placed a firm order for two Bombardier DHC-8-402 (Q400) NextGen turboprop airliners and has also taken options for four additional Q400 NextGen aircraft. The aircraft will be delivered with a dual-class, 71-seat configuration. Island Air is Hawaii’s leading regional airline and second oldest carrier.

Island Air previously operated the type briefly in the past.

Image: Bombardier.

Island Air: