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United Airlines unveils its new premium seat for 200+ narrow body aircraft

United Airlines (Chicago) according to the airline, “is introducing a new, comfortable, custom-designed seat for first-class cabins on more than 200 of the company’s narrowbody aircraft.”

United NB premium seat (United)(LRW)

Above Photo: United Airlines.

The seat will debut on an Airbus A319 (above) next week, with retrofits on A319s, A320s and many Boeing 737s and 757s through 2016.

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Developed with input from customers whom the airline invited to test seat prototypes, the custom seat United and design firm PriestmanGoode have created features several elements to improve the customer experience, including:

  • All-leather seat covers in signature navy and champagne colors;
  • A patented-design tray table with tablet holder, enabling travelers to enjoy food and beverages while using their personal electronic devices;
  • An articulating seat bottom for greater comfort when reclining and an adjustable headrest;
  • In-seat universal A/C power outlets for customers to charge their devices;
  • Additional in-seat storage, including two seatback pockets and side stowage for laptops and tablets;
  • Dedicated beverage holders; and
  • Granite cocktail tables.

At 21.1 inches wide, the new United First seat is wider than the current seat and will have numerous custom-design elements and premium finishes, including the signature United-branded tag.

Each aircraft will continue to have the same number of premium-cabin seats.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-131 N850UA (msn 1653) departs from Los Angeles International Airport.

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Will the Transaero Airlines brand be retired and merged into Aeroflot?

Aeroflot Russian Airlines (Moscow) has agreed to acquire 75 percent of the shares of failing Transaero Airlines (Moscow). Aeroflot is buying out its main competitor (and its $1.6 billion debt) for the symbolic price of one ruble. Transaero Airlines is the second largest airline in Russia and has lately been failing and building up a large debt.

According to Reuters,ย “Transaero will be completely overhauled and integrated into the Aeroflot group,” an Aeroflot spokesman was quoted as saying by RIA news agency.

For now, the Transaero Airlines name will be kept alive as a significant but shrinking part of the Aeroflot Group. However for the long term, will Transaero be merged into Aeroflot and the brand retired?

Above Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. Transaero has been introducing this new brand with its new deliveries. Will this new look be retained?

51 percent of the Aeroflot stock is owned by the government of Russia. The government is backing its major industries.

Transaero Airlines (and many other Russian airlines) have been struggling since the ruble collapsed in 2014. In short, Russian citizens are traveling less overseas with their devalued currency.

As we previously reported, even Aeroflot reported a loss in the first half of this year.

On September 1, Transaero Airlines issued this short statement:

Transaero logo

The Government of the Russian Federation held the meeting of the Intergovernmental commission chaired by Igor Shuvalov, First Deputy Prime Minister, on the issues of air transport industry.

In the interests of the development of the commercial aviation and creating one of the largest in the world group of airlines, the commission has approved the acquisition of JSC Transaero Airlines by Aeroflot group.

The shareholders of Transaero Airlines believe this measure will serve the interests of passengers, personnel and partners of the airline.

The Chairman of the meeting has highly appreciated the role of the founders, managers and all the personnel of Transaero Airlines in the modern history of the commercial aviation of the country.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Ex-United Airlines and Air Indiaย  Boeing 777-222 ER EI-UNV (msn 28714, ex N205UA/VT-AIK) arrives at Los Angeles International Airport.

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Aeroflot Group reports a net loss for the first half

Aeroflot Group (Aeroflot Russian Airlines) (Moscow) today (August 31) published its consolidated interim financial statements for the six months ended June 30, 2015, in accordance with International Financial Reporting Standards:

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First Half (1H) 2015 Operating and Financial Highlights for Aeroflot Group:

  • Group passenger traffic increased by 14.0% year-on-year, with 33.4% year-on-year growth in the domestic segment;
  • Aeroflot Group increased its market share [1] by 5.8 percentage points (p.p.) year-on-year to 37.0%;
  • Revenue reached RUB 176,467 million, up 25.8% year-on-year;
  • EBITDAR [2] nearly doubled year-on-year to RUB 33,252 million;
  • EBITDA [2] increased by more than two-fold year-on-year to RUB 13,311 million;
  • Operating profit amounted to RUB 5,866 million as compared to an operating loss of RUB 1,384 million in 1H 2014;
  • Net loss amounted to RUB 3,541 million ($52,699.99)

Shamil Kurmashov, PJSC Aeroflot Deputy CEO for Finance and Network and Revenue Management, commented:

“In the first half of 2015, Aeroflot Group strengthened its position as the leader in the Russian air transportation market with 14.0% year-on-year growth in passenger traffic and a 5.8 percentage point increase in market share. This was driven by strong operational performance at Aeroflot airline and the successful roll-out of Russia’s first low-cost carrier, Pobeda, which has quickly become one the top airlines in the country. The Group also benefited from changes in the competitive landscape, taking market share from foreign carriers that decreased frequencies on a number of routes as well as less efficient Russian peers.

“Our focus on the high-growth domestic market paid off with strong increases in Group traffic, which drove revenue up 25.8% year-on-year to RUB 176.5 billion, while strict cost control reined in growth of operational expenses despite exchange rate volatility. As a result, in the first half of 2015 Aeroflot Group posted an operating profit of RUB 5.9 billion; EBITDA and EBITDAR also rose, and the EBITDA and EBITDAR margins increased 3.9 and 6.9 percentage points to 7.5% and 18.8%, respectively.

“The Group focused on fleet optimization, cost-cutting, boosting efficiency of business processes and financial management, and maintaining a robust financial position. We are confident our policy of expanding our presence on the growing Russian market, maintaining customer loyalty and increasing business efficiency will enable continued growth in the Group’s profitability as the Russian economy recovers.”

In 1H 2015, Aeroflot Group’s revenue increased by 25.8% year-on-year to RUB 176,467 million, primarily as a result of an increase in revenue from Scheduled passenger flights and Other revenues.

Revenue from scheduled passenger flights in 1H 2015 increased by 30.0% year-on-year to RUB 144,087 million, boosted by 14.0% growth in passenger traffic year-on-year. Revenue from charter flights decreased by 71.0% to RUB 2,075 million, due to the Group’s strategy to decrease its presence in this market segment, as well as overall market dynamics in tourism traffic.

Despite a 1.0% decrease in the volume of cargo and mail carried in 1H 2015, cargo revenue increased 16.3% year-on-year on the back of stronger yields.

Other revenues increased by 39.9% year-on-year to 25,863 million, mainly driven by an increase in FX-denominated revenues from airline agreements following changes in the exchange rate.

Notes:

1. Including foreign carriers traffic.

2. EBITDAR = EBITDA before operating lease expenses. EBITDA = operating income + depreciation & amortization + customs duties.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-3M0 ER VQ-BUB (msn 41690) departs from Los Angeles International Airport.

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Allegiant to grow its Airbus fleet to 50 aircraft

Allegiant Air (Las Vegas) has announced an agreement to purchase its 50th Airbus aircraft, an A320, from Airbus Financial Services. The purchase marks an important milestone for the company in its long-term transition to an Airbus fleet.

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By the end of 2015, the company’s in service Airbus fleet will number 25, consisting of 15 A320s and 10 A319s. The remaining 25 committed Airbus aircraft will be delivered through 2018. The aircraft announced today will enter revenue service in early 2016. Allegiant anticipates adding further aircraft commitments as opportunities for new transactions arise. At the end of this year, Allegiant will have a total of 82 aircraft in revenue service.

The younger A320 family aircraft will help Allegiant to increase operational efficiency in the coming years. The enhanced operating economics of the aircraft will also open up new growth opportunities for the company by making longer routes and off-peak flying profitable. Routes such as Sanford to Bismarck, North Dakota and Mesa to Fort Wayne, Indiana have been made successful with the introduction of the A320/A319 into the fleet.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-111 N304NV (msn 2265) approaches the runway at Los Angeles International Airport.

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American Airlines announces Los Angeles – Havana charter flights

American Airlines (Dallas/Fort Worth) and Cuba Travel Services plan to operate the first charter flights between Los Angeles International Airport (LAX) and Jose Marti International Airport (HAV) in Havana later this year, providing travelers the only nonstop service connecting the West Coast to Cuba since travel restrictions were eased.

American Airlines 2013 logo

American’s new charter service between Los Angeles and Havana will be sold by Cuba Travel Services and will operate on Saturdays beginning on nDecember 12 with Boeing 737-800 aircraft.

In addition, American will operate a Saturday flight between Miami International Airport and Havana, also sold by Cuba Travel Services.

American has operated charter flights to Cuba since 1991. With these additions, American will offer 22 weekly flights from Miami, Tampa and Los Angeles to five destinations in the country: Camaguey, Cienfuegos, Havana, Holguin and Santa Clara. This year, American will operate approximately 1,200 charter flights to Cuba, more than any other airline. American also is the leading carrier to the Caribbean with up to 150 daily flights to more than 30 destinations.

With the addition of Havana, American will have launched nine international flights from its LAX hub this year. Additions include a second daily flight to London’s Heathrow Airport; Vancouver, Canada; Belize City, Belize; Guadalajara, Mexico City and Mazatlan, Mexico; Sydney (pending regulatory approvals) and Tokyo-Haneda (pending Japanese government approval).

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-823 N823NN (msn 29560) departs from Los Angeles International Airport (LAX).

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Emirates to launch the world’s longest air route

Emirates (Dubai) has announced plans to launch services to Panama City, beginning February 1, 2016.

The new service will be the longest nonstop flight in the world (17 hours 35 minutes in the westbound direction) and will be Emiratesโ€™ first gateway destination in Central America.

Service to Panama City, Panamaโ€™s capital and largest city by population, will commence with a daily flight operated by a Boeing 777-200 LR aircraft in a 3-class layout – 8 in First, 42 in Business, and 216 in Economy. The aircraft can carry up to 15 tons of cargo. Key imports to the country include pharmaceuticals, machinery products, iron/steel rods, and electronics. Service to Panama City will operate through Tocumen International Airport (PTY).

Later this year, Emirates will be adding four additional routes to its global network including Mashhad, Iran and Orlando in September; Bamako, Mali in October; and Bologna in November.
Service to Panama City to begin on February 1, 2016

Emirates flight EK251 will depart Dubai at 08:05 and arrive in Panama City at 16:40 daily. The return flight EK252 will leave Panama City at 22:10, arriving in Dubai at 22:55 the next day.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-21H LR (Longer Range) A6-EWH (msn 35587) departs from Los Angeles International Airport (LAX).

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Copa Holdings reports a larger second quarter net profit

Copa Holdings, S.A. (Copa Airlines) (Panama City) has its announced financial results for the second quarter of 2015 (2Q15).

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OPERATING AND FINANCIAL HIGHLIGHTS:

Copa Holdings reported net income of $64.1 million (all amounts are in US dollars) for 2Q15, or diluted earnings per share (EPS) of $1.46. Excluding special items, Copa Holdings would have reported an adjusted net income of $41.0 million, or $0.93 per share, a 64.7% decrease over adjusted net income of $115.9 million and $2.61 per share for 2Q14.

Operating income for 2Q15 came in at $49.2 million, a 62.5% decrease over operating income of $131.2 million in 2Q14. Operating margin for the period came in at 9.1%, compared to 19.5% in 2Q14, as a result of lower unit revenues partially offset by lower unit costs.

Total revenues decreased 20.1% to $538.4 million. Yield per passenger mile decreased 20.4% to 13.2 cents and operating revenue per available seat mile (RASM) decreased 24.4% to 10.0 cents.

For 2Q15, passenger traffic (RPMs) decreased 0.2% on a 5.8% capacity expansion. As a result, consolidated load factor came in at 72.9%, or 4.3 percentage points below 2Q14.

Operating cost per available seat mile (CASM) decreased 14.7%, from 10.7 cents in 2Q14 to 9.1 cents in 2Q15, mainly due to lower jet fuel costs. CASM excluding fuel decreased 6.3% to 6.2 cents mainly due to lower sales related expenses and lower overhead expenses.

Cash, short-term and long-term investments ended 2Q15 at $1.15 billion, representing 46% of the last twelve months’ revenues. Of this amount, 39%, or $452.2 million, is in Venezuela pending repatriation due to government currency controls.

During the second quarter, Copa Airlines took delivery of two Boeing 737-800 aircraft, and returned a leased Boeing 737-700.

Furthermore, the Company subleased one of its Boeing 737-700s to United Airlines. As a result, Copa Holdings ended the quarter with a consolidated fleet of 98 aircraft.

For 2Q15, Copa Holdings reported consolidated on-time performance of 90.4% and a flight-completion factor of 99.7%, maintaining its position among the best in the industry.

SUBSEQUENT EVENTS

During July 2015, Copa Holdings subleased one more of its Boeing 737-700s to United Airlines.

Copa Holdings will pay its third quarter dividend of US$0.84 per share on September 15, 2015, on all outstanding Class A and Class B shares, to stockholders of record as of August 31, 2015.

Note:

(1) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 2Q15, 2Q14, and 1Q15 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges, and also exclude charges/gains related to the Venezuelan currency.

Copyright Photo: Michael B. Ing/AirlinersGallery.com.ย Copa Airlines Boeing 737-86N HP-1726CMP (msn 38024) departs from Los Angeles.

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United to add new routes from Chicago O’Hare this winter

United Airlines (Chicago) is adding three new routes this winter from its Chicago O’Hare hub. According to Airline Route, the carrier will add daily United Express service to Kalamazoo on December 9 and winter seasonal United Express service to Tucson on December 17 followed by weekend mainline Boeing 737 service to Vail/Eagle, Colorado (ski destination) on December 19.

In addition, United is adding weekly Boeing 737-800 (Saturday only) seasonal service to the Caribbean island of St. Kitts from its Newark hub on December 19.

Copyright Photo: Michael B. Ing/AirlinersGallery.com.ย United Airlines’ Boeing 737-824 N78509 (msn 31638) with Split Scimitar Winglets arrives at Los Angeles International Airport.

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Philippine Airlines to start nonstop Cebu – Los Angeles service

Philippines (Philippine Airlines) (Manila) on March 15, 2016, will launch three weekly flights from Cebu, the capital city of Cebu Province in the Philippines, and Los Angeles. The new service will be operated with Airbus A340-300s per Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com.ย Airbus A340-313 RP-C3435 (msn 302) approaches the runway at Los Angeles International Airport.

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American to increase Embraer 175 operations from Los Angeles

American Airlines (Dallas/Fort Worth) is assigning more routes to Compass Airlines (Minneapolis/St. Paul) from Los Angeles International Airport. Starting On September 9, Compass will operate its Embraer 175s on American Eagle flights from LAX to Fayetteville (Northwest Arkansas), Fresno, Oklahoma City and Reno.

This will be followed on November 5 with the Los Angeles – El Paso route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Operated by Compass Airlines, Embraer ERJ 170-200LR (ERJ 175) N202NN (msn 17000467) approaches the runway at Los Angeles International Airport (LAX).

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