Tag Archives: LAS

Allegiant Air’s pilots formally request arbitration from the National Mediation Board

Allegiant Air‘s (Las Vegas) pilots have formally asked the National Mediation Board (NMB) to arbitrate the contract dispute between the pilots, represented by the International Brotherhood of Teamsters, and management. The union issued this statement:

The International Brotherhood of Teamsters will host a call to update Allegiant Travel Company investors, industry analysts, customers and press regarding the current status of contract negotiations for Allegiant Air pilots, their recent strike authorization vote and the union’s request for a proffer of arbitration from the National Mediation Board.

On behalf of the approximately 500 pilots at Allegiant Air, the International Brotherhood of Teamsters Airline Division and its affiliate, Airline Professionals Association of the International Brotherhood of Teamsters Local 1224 (collectively, the “IBT”) filed a request on Friday afternoon, January 23, asking the National Mediation Board to make a proffer of arbitration. The request follows over two-and-a-half years of negotiations and mediation that have yet to result in a contract.

“Allegiant Air pilots have propelled the company to significant growth and prosperity, despite challenging operating conditions and breakdowns at the company. Yet, management continues to show its contempt for its operational employees by negotiating in bad faith,” said Daniel Wells, president of APA Teamsters Local 1224. “Allegiant Air pilots have had enough.”

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N864GA (msn 49912) arrives back at the Las Vegas base painted in the old 2003 livery.

Allegiant Air aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Allegiant-Air

Delta adds extra flights from Phoenix on February 2 for the Super Bowl

Delta Air Lines (Atlanta) has added nonstop service from Phoenix to Boston, Los Angeles and Seattle/Tacoma and has put larger aircraft on select flights from Seattle/Tacoma to Phoenix to accommodate customers traveling to and from the pro football championship game (Super Bowl).

The temporary service will operate as follows:

Flights 8789 to Los Angeles and 8799 to Seattle/Tacoma will operate using specially configured aircraft with all first or business class seats. Along with the added service, Delta has increased the size of the aircraft on one regularly scheduled flight from Phoenix to Seattle/Tacoma on February 2 from a regional jet to a 160-seat Boeing 737-800.

Delta regularly operates five peak-day flights to Phoenix from its Seattle/Tacoma hub, and two of those flights will be operated using larger aircraft to accommodate more fans traveling to the game on Friday, January 30. Delta also operates five peak-day flights from Los Angeles to Phoenix. Some service may be operated by Delta Connection carriers SkyWest Airlines and Compass Airlines.

Delta Air Lines aircraft slide show (current livery):

Delta reports net income of $649 million for the 4Q, $2.8 billion for the full year

Delta Air Lines (Atlanta) today reported financial results for the fourth quarter. Key points include:

Delta’s pre-tax income for the December 2014 quarter was $1.0 billion, excluding special items1, an increase of $474 million over the December 2013 quarter on a similar basis. Delta’s net income for the December 2014 quarter was $649 million, or $0.78 per diluted share, and its operating margin was 12.6 percent, excluding special items.

For the full year 2014, Delta’s pre-tax income, excluding special items, was $4.5 billion, a $1.9 billion increase over 2013. Delta’s net income for the year was $2.8 billion with an operating margin of 13.1 percent, excluding special items.

On a GAAP basis including special items, Delta’s December quarter pre-tax loss was $1.1 billion, operating margin was -8.6 percent and net loss was $712 million, or $0.86 per share. On a GAAP basis including special items, Delta’s 2014 pre-tax income was $1.1 billion, operating margin was 5.5 percent and net income was $659 million.

2014 results include $1.1 billion in profit sharing expense, including $262 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s financial goals.
The company’s strong cash generation allowed it to accelerate its capital deployment plans by reducing its adjusted net debt2 to $7.3 billion, contributing an incremental $250 million above required funding to its defined benefit pension plans, and returning $1.35 billion to shareholders through a combination of $251 million of dividends and $1.1 billion of share repurchases in 2014.

“Our 2014 performance – an industry-leading operation, superior customer service, and a 70 percent increase in profits – shows that Delta is focused on delivering growing value for its employees, customers and investors,” said Richard Anderson, Delta’s chief executive officer. “As we begin 2015, we have a significant opportunity from lower fuel prices, which will drive more than $2 billion in fuel savings over 2014. Through our capacity discipline, pricing our product to demand, and the fuel savings, we expect to drive double-digit earnings growth, along with increased free cash flow and a higher return on invested capital in the upcoming year.”

Special Items

Delta recorded a $1.4 billion special items charge, net of taxes, in the December 2014 quarter, including:

a $1.2 billion charge for mark-to-market adjustments on fuel hedges settling in future periods;
a $75 million charge for mark-to-market adjustments on hedges owned by Virgin Atlantic;
a $74 million charge for fleet, facilities, and other items, associated with Delta’s domestic fleet restructuring initiative as well as the write-down of certain facilities in Concourse C of Detroit Airport; and
a $29 million gain related to an insurance settlement.
Delta recorded a net $7.9 billion special items gain in the December 2013 quarter, including:

an $8.0 billion non-cash gain associated with the reversal of Delta’s tax valuation allowance;
a $92 million mark-to-market gain on fuel hedges; and
a $160 million charge for facilities, fleet and other, including charges associated with Delta’s domestic fleet restructuring.

Read the full report: CLICK HERE

Financial comment from James Chen, Chief Technical Strategist at www.cityindex.com.sg

“Delta Airlines Inc. (DAL) announced fourth quarter earnings on Tuesday before the market open. The airline reported better-than-expected non-GAAP earnings of $0.78 per share, helped by falling fuel prices. This beat analysts’ consensus earnings estimate of $0.77.

Total operating revenue reached $9.65 billion, slightly topping the $9.58 consensus estimate.

DAL’s stock price rose well above $47.00 in pre-market trading after having closed on Friday at 45.84.

Overall, DAL continues to trade within a long-term bullish trend. 2014 was a dramatically bullish year for the stock, as price rose by 84% from its 2014 opening price of $27.26 up to the record high of $50.16 that was reached on the very last day of 2014. This was despite a major price correction that occurred throughout September and the first half of October.

The new year has thus far shown somewhat of a different picture. From the very beginning of 2015, DAL has declined consistently from its 2014 high in a substantial pullback move.

Prior to Tuesday’s earnings report, price action had been approaching key support around the $44.00 price level, slightly under the 50-day moving average. The positive earnings report, however, has prompted a significant rebound from that level, with a clear upside resistance target around the $50.00 resistance area once again. With a continued bullish bias, especially after Tuesday’s earnings beat, the uptrend for DAL should be poised to continue its march up towards its $55.00 price objective.”

Read more on James’ page at http://www.cityindex.com.sg/market-talk/analysts/james-chen/

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-832 N374DA (msn 29622) approaches the runway at Las Vegas McCarran International Airport.

Delta Air Lines aircraft slide show (current livery):

The pilots of Allegiant Air authorize a strike

Allegiant Air (Las Vegas) is facing a possible strike by its pilots. The Airline Professionals Association (APA) Teamsters Local 1224 issued this statement yesterday:

Pilots at Allegiant Air, represented by the Airline Professionals Association (APA) Teamsters Local 1224, voted overwhelmingly, 465-8, on January 16 to authorize a strike against Allegiant Air. The 10-day voting period closed at 12:00 p.m. EST January 16, with 98 percent of voting Allegiant Air pilots voting “Yes” to authorize the union to call a strike if necessary.

“This does not mean that a strike is going to happen tomorrow or even next week,” said APA Teamsters Local 1224 President Daniel Wells. “It does, however, mean that the situation is fluid. If Allegiant continues to stonewall in negotiations and continues to disregard the federal court’s injunction ordering it to restore the pilots’ work rules, then a pilot strike at Allegiant Air will be very realistic.”

In early January, the union’s leadership decided to put a formal strike authorization vote out to the membership, based on a deadlock in negotiations and Allegiant Air’s continued failure to abide by a July 2014 federal court injunction directing Allegiant Air to restore the pilots’ work rule protections and benefits to previously negotiated levels.

“Virtually every pilot voted to authorize a strike,” Wells said. “That speaks volumes.”

With this kind of support, the union intends to move forward by seeking a proffer from the National Mediation Board (NMB) under the Railway Labor Act’s dispute provisions. Once this has been completed, or to the extent that Allegiant remains unwilling to restore the pilots’ work rule protections and benefits, the pilots would be free to conduct a legal strike in the near future.

The pilots have been in negotiations with Allegiant Air for two years with little to no progress. Their first negotiation session began in December of 2012 – with mediated negotiations beginning in April 2014 – and still the company cannot reach agreement with the union on even the most basic conditions in their negotiations for a new collective bargaining agreement.

“No one wants to strike,” Wells said. “We would rather be able to make some real progress in direct negotiations. However, the pilots haven’t seen any real progress in over two years.”

In just two years, three employee groups, encompassing all of Allegiant Air’s operational personnel, have joined national labor unions, indicating that the issues at hand in this battle extend far beyond basic management-employee relations. In addition to basic compensation and work rules, the issues center on safety concerns and operational deficiencies that cannot be resolved without the company’s willingness to begin reinvesting directly into the company’s operation. The pilots contend that vital changes are needed for Allegiant’s long-term success, before it’s too late.

Teamster pilots with Allegiant Air conducted informational picketing on Tuesday at McCarran International Airport and Allegiant Air Corporate Headquarters in Las Vegas, as well as at St Petersburg-Clearwater International Airport and Fort Lauderdale International Airport in Florida, to make the public aware of their fight for infrastructural investments into Allegiant Air’s operational systems, basic industry averages in salary and for other job protection measures that are standard in the airline industry.

Las Vegas-based Allegiant Air is one of the most profitable airlines in the world, reporting a profit for 47 consecutive quarters. Its executives are among the highest compensated in the industry, yet its pilots are among the lowest paid and are subject to substandard working conditions in comparison to the rest of the industry.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 757-204 N905NV (msn 27235) arrives back at the Las Vegas base from Honolulu.

Allegiant Air aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Allegiant-Air

Alaska Horizon today starts Las Vegas-Mammoth Lakes flights

Alaska Airlines (Seattle/Tacoma) inaugurates new Alaska Horizon (Horizon Air) (Seattle/Tacoma) seasonal service between Las Vegas and Mammoth Lakes, California, today (January 15). Mammoth Lakes is a popular ski destination and close to Yosemite National Park.

Alaska’s nonstop flight from Las Vegas to Mammoth Lakes will operate on Mondays and Thursdays between January 15 and April 6, 2015.

Alaska Airlines also provides year-round flights to Mammoth Lakes from Los Angeles and winter seasonal flights from San Diego.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Alaska Horizon’s (Horizon Air) Bombardier DHC-8-402 (Q400) N403QX (msn 4037) arrives in Las Vegas in the special college Montana State Bobcats color scheme.

Alaska Horizon aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Alaska-Horizon-Horizon-Air

Allegiant Air’s pilots to conduct informational picketing today, announces Indianapolis-Fort Lauderdale/Hollywood service

Allegiant Air‘s (Las Vegas) pilots will conduct informational picketing today (January 13) to bring “awareness to their efforts to secure a new contract.”

McCarran International Airport

5757 Wayne Newton Boulevard
Las Vegas, NV 89119

Time: 9:30 – 11:30 a.m. Pacific Standard Time

Allegiant Air Corporate Headquarters

1201 N. Town Center Drive
Las Vegas, NV 89144

Time: 1:30 – 3:30 p.m. Pacific Standard Time

St Petersburg-Clearwater International Airport

14700 Terminal Boulevard
Clearwater, FL 33762

Time: 7:30 – 9:30 a.m. and 1:00 – 3:00 p.m. Eastern Standard Time

Fort Lauderdale-Hollywood International Airport

100 Terminal Dr.
Fort Lauderdale, FL 33315

Time: 8:00 – 10:00 a.m.

In other news, Allegiant announced the addition of low-cost, twice weekly nonstop jet service to Fort Lauderdale/Hollywood from Indianapolis beginning on April 8, 2015, continuing Allegiant’s rapid expansion in Indianapolis.

Allegiant’s launch of service from Indianapolis next month will be the largest in the company’s history, when it will inaugurate nonstop service to five destinations: Las Vegas, Sanford, St. Petersburg/Clearwater, Punta Gorda and seasonal service to New Orleans. Fort Lauderdale/Hollywood is the carrier’s fourth Florida destination announced from Indianapolis

Copyright Photo: Gunter Mayer/AirlinersGallery.com. Boeing 757-204 N906NV (msn 27236) holds short of the runway at Las Vegas McCarran International Airport (LAS).

Allegiant Air aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Allegiant-Air

Hawaiian files to serve the Kona – Tokyo Haneda market

Hawaiian Airlines (Honolulu) has filed an application with the U.S. Department of Transportation (DOT) to begin daily, nonstop service this summer between Tokyo International Airport at Haneda (HND) and Kona International Airport (KOA) on Hawai’i Island. The airline’s action was prompted by the U.S. DOT’s decision last month to review the public interest served by Delta Air Lines’ Seattle/Tacoma-Tokyo route after Delta reduced its frequency from daily to seasonal.

In its application, Hawai’i’s flagship carrier urged the U.S. DOT to reallocate Delta’s Haneda frequency based on market data, noting that Hawaiian Airlines’ Honolulu-Tokyo service has been “by far the most, if not only, successful route” of the four Haneda slot pairs granted to U.S. carriers in 2010.

The Hawai’i Tourism Authority (HTA) estimates that the proposed daily service will generate 531,721 visitor days and $146 million in visitor expenditures. Hawaiian Airlines’ application calculates that service directly to Kona will attract 39,000 additional visitors and result in 1,151 new jobs and $65 million in new direct spending.
The application has the full support of Governor David Ige and Hawai’i Island Mayor Billy Kenoi.

If approved, this would be Hawaiian Airlines’ fifth Japan route and third daily nonstop flight between Japan and Hawai’i, joining daily service to Honolulu from Tokyo and Osaka and thrice-weekly service between Honolulu, Sendai and Sapporo. Hawaiian Airlines anticipates it will begin service on or about June 1, 2015, utilizing its fleet of 20 294-seat Airbus A330-200 aircraft. The departure and arrival times will vary depending on time of year.

In other news, Hawaiian Airlines announced its system-wide traffic statistics for the full year, fourth quarter and the month of December 2014. The airline set a new annual record in its 85-year history with 10,195,145 passengers transported in 2014, 2.6 percent higher than the previous year.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A330-243 N381HA (msn 1114) approaches the runway at Las Vegas McCarran International Airport.

Hawaiian Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-2/Airlines-UnitedStates-2/Hawaiian-Airlines

Volaris to launch Guadalajara-Houston flights

Volaris (Concesionaria Vuela Compañía de Aviación, S.A.) (Mexico City) will add the Guadalajara – Houston (Bush Intercontinental) route on March 23, 2015. The new route will be operated three days a week per Airline Route.

Copyright Photo: Volaris names its aircraft after contest winners. In 2010 the airline announced its “Put your name on a Volaris’ plane and get free flights for a year” contest. Contestants had to answer the question: What would you do if you had a Volaris’ plane for a year? According to the airline, “Our jury will choose the twenty one (21) most original, creative and fun answers as winners. The prize will include the right to to put your name on a Volaris’ plane and a Volaris’ Pass to get free flights for yourself and one travel companion during a year to any of our destinations.” The pictured Airbus A320-232 XA-VOV (msn 3524) arriving at Las Vegas is named “Valerie”.

Volaris aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Mexico/Airlines-Mexico-AZ/Volaris

Alaska Airlines and American Airlines expand their code-share relationship

Alaska Airlines (Seattle/Tacoma) and American Airlines (Dallas/Fort Worth) are expanding their code share agreement on 16 additional routes

According to Airline Route, from December 25, 2014, Alaska will place its AS code on the following American routes:

Los Angeles – Fayetteville
Los Angeles – San Antonio
Los Angeles – Tampa
Los Angeles – Toronto
Los Angeles – Vancouver
Los Angeles – West Palm Beach

In return, American will place its AA code on the following Alaska and Alaska Horizon (Horizon Air)routes:

Salt Lake City – Las Vegas
Salt Lake City – San Diego
Salt Lake City – San Francisco
Salt Lake City – San Jose

Seattle/Tacoma – Kalispell
Seattle/Tacoma – Kelowna
Seattle/Tacoma – Lewiston
Seattle/Tacoma – Pullman
Seattle/Tacoma – Walla Walla
Seattle/Tacoma – Wenatchee

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alaska Airlines’ Boeing 737-490 N795AS (msn 28890) arrives in Anchorage.

Alaska Airlines aircraft slide show:

American Airlines aircraft slide show (current livery):

Bottom Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A321-231 N126AN (msn 6313) arrives in Las Vegas.

Allegiant takes a $43.2 million write-down on the value of its Boeing 757-200 aircraft fleet, likely to be replaced sooner

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported that it is taking a $43.2 million write-down on the value of its Boeing 757-200 aircraft fleet. The write down on the balance sheet came after a review of the value of the six Boeing 757-200s. For now, the company will continue to operate the type, mainly to Hawaii, in the near term. However the type is not expected to be operated through the full life of each aircraft. Allegiant is now likely to find a replacement aircraft (Airbus A321?) for the 757s earlier than what was previously planned. The charge will occur in the fourth quarter of 2014.

The company issued this statement:

“This non-cash impairment charge resulted from a recent review of the value of the Company’s Boeing 757 assets,” stated Maurice J. Gallagher Jr., Chairman and CEO of Allegiant Travel Company. “We evaluate factors such as our ability or intent to operate fleet types through their estimated useful lives, potential changes to fleet residual values based on changes in market conditions for used aircraft, spare engines and parts and potential changes to our scheduled revenue network based on competition trends and operational performance. Based on our review the Company concluded that the estimated future cash flows for its six 757-200 series aircraft, spare engine and parts pool did not support the net book values on our balance sheet. This decision reflects the Company’s view that our 757 fleet will be held for a period less than their current expected useful lives, which is currently seven years or through 2021. In addition, residual values for 757 aircraft will be reduced from $6 million to $3 million based what we believe is a permanent decline in the used 757 market. The Company will continue to operate 757 aircraft on longer-haul routes, including Hawaii, in the near term.”

With this write down, the Company expects fourth quarter CASM ex fuel to increase between 40 and 41 percent versus last year. Prior to the charge, the fourth quarter was trending towards the lower end of the range provided on October 22, 2014.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Formerly operated by Britannia Airways/Thomsonfly/Thomson Airways, Boeing 757-204 N903NV (msn 26966, ex G-BYAH) arrives from Hawaii in Las Vegas. The jetliner was originally delivered on February 5, 1993.

Allegiant aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Allegiant-Air