Tag Archives: mcdonnell douglas md82

SAS operates its last McDonnell Douglas DC-9-82 (MD-82) flight, ending a long relationship with Douglas airplanes

Scandinavian Airlines-SAS (Stockholm) operated and quietly retired their last McDonnell Douglas DC-9. The last MD-80 was operated on October 26, 2013 on flight SK403 from Stockholm-Arlanda to Copenhagen. This is the first time SAS will be without a Douglas aircraft in its fleet. SAS has operated every Douglas and McDonnell Douglas type since the DC-3 (except the DC-5 and the MD-11).

The last revenue flight (flight SK 403) was operated by McDonnell Douglas DC-9-82 (MD-82) SE-DIR “Nora Viking” (msn 53004) between Stockholm (Arlanda) and Copenhagen on October 25. A special employee-only farewell flight was flown by DC-9-82 (MD-82) LN-RMM (msn 53005) on October 26 over Denmark.

DC-9-82s SE-DIR, OY-KHE (msn 49604) and LN-RMM all operated on the last day of revenue operations (October 25).

One of the aircraft will be donated to the SAS Museum outside of Oslo.

According to a Danish newspaper, the SAS MD-80s operated 3,134,900 flights with the 66 aircraft in the fleet. 2,977,195,000 km were flown since the type was introduced in October 1985.

All of the above information is from Airliners.net.

In other news, SAS recently finalized its Airbus long-haul order. On June 25, 2013, SAS and Airbus signed a Memorandum of Understanding (MOU) for the order of 12 new long haul aircraft.

This month, SAS and Airbus signed the final long haul aircraft order agreement comprising 4 A330-300 Enhanced and 8 A350-900 plus 6 options for A350-900. The Airbus A330 will be delivered 2015/16 and the Airbus A350 will be delivered from 2018.

Copyright Photo: Moritz Riemer/AirlinersGallery.com. DC-9-82 (MD-82) OY-KHE (msn 49604) in the Star Alliance livery arrives at Copenhagen.

Scandinavian Airlines-SAS: AG Slide Show


Allegiant Travel Company reports net income of $17.1 million in the 3Q, up 1%

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported the following financial results for the third quarter 2013, as well as comparisons to prior year equivalents:

Unaudited 3 months endedSept 30,
2013 2012 Change
Total operating revenue (m) $ 228.9 $ 216.9 5.5 %
Operating income (millions) $ 29.2 $ 28.7 1.7 %
Operating margin   12.8 % 13.3 % (0.5)pp    
EBITDA (millions) $ 46.7 $ 44.6 4.7 %
EBITDA margin   20.4 % 20.6 % (0.2)pp      
Net income (millions) $ 17.1 $ 16.9 1.0 %
Diluted earnings per share $ 0.91 $ 0.87 4.6 %

“We are very proud to report our 43rd consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We are pleased to produce another profitable quarter and be able to return cash to shareholders through our share repurchase program.  In addition, I am proud to announce that Andrew Levy has been added to our Board of Directors and will also assume the role of Chief Operating Officer.  His proven leadership abilities and extensive operational and financial expertise, as well as a deep understanding of the airline business, will be invaluable in his new role as COO.”

“Finally, we were significantly challenged operationally at the end of September many of our MD-80s were taken out of service due to an evacuation slide issue.  Through the tireless efforts of our Team Members, we were able to minimize the disruption to our customers.  I am very thankful to all of those individuals who worked extremely hard to put the operation back together in such a short amount of time.”

Notable Company Highlights

  • Completed the acquisition of five Airbus A320 aircraft.  The company now owns seven A320s
  • Repurchased 491,000 shares for $47 million during the third quarter, average purchase price of $95.85 per share
  • Announced service from nine existing cities to Punta Gorda (Southwest Florida) to begin in the fourth quarter
  • Announced service to 12 new cities with service beginning in the fourth quarter and first quarter
  • Announced 29 new routes which will begin operation in the fourth quarter
  • Average aircraft in service was flat versus last quarter as we retired three MD-80 aircraft and temporarily grounded two MD-80 aircraft early in the quarter
  • Increasing MD-80 operating fleet from 52 at the end of the year to 53 in the first quarter of 2014

Third Quarter 2013 Revenue Performance

  • 15th consecutive quarter of year over year increases in total average fare, 4.8 percent higher than a year ago
  • Florida TRASM grew by 9.6 percent despite 12.7 percent growth in ASMs
  • Same store markets, those which were operated in both the third quarter 2013 and 2012, generated a 5.0 percent increase in TRASM
  • Grew scheduled load factor to 90.8 percent despite a 4.2 percent increase in seats per departure
  • The September slide interruption resulted in approximately $1 million in refunds given to customers
3Q13 3Q12 Change
Scheduled Service:
Average fare – scheduled service $86.94 $82.30 5.6 %
Average fare – ancillary air-related charges $38.99 $37.05 5.2 %
Average fare – ancillary third party products $5.06 $5.59 (9.5 )%
Average fare – total $130.99 $124.94 4.8 %
Scheduled service passenger revenue per ASM (PRASM) (cents) 8.14 7.89 3.2 %
Total scheduled service revenue per ASM (TRASM) (cents) 12.26 11.98 2.3 %
Load factor 90.8 %   90.1 %   0.7pp
Passengers (millions) 1.7 1.6 6.3 %
Average passengers per departure 150 143 4.9 %
Average scheduled service stage length (miles) 932 910 2.4 %

ASMs = available seat miles
 PRASM = scheduled passenger revenue per scheduled available seat mile
TRASM = (scheduled passenger revenue + ancillary air revenue + ancillary third party revenue) per scheduled available seat mile

Third Quarter 2013 Cost Performance

  • Fuel expense per ASM declined 3.9 percent primarily due to a 5.8 percent increase in ASMs per gallon versus last year, which more than offset a 1.9 percent increase in average cost per gallon
  • Operating expense excluding fuel was negatively impacted by lower aircraft utilization and approximately $2 million in expense attributable to the evacuation slide interruption.  The expense associated with the slide event is isolated to September and resulted in higher aircraft lease rentals expense as we contracted with other carriers for sub-service of aircraft to move some of our customers, higher station operations expense due to customer interrupted trip costs, and increased salary and benefits expense due to additional overtime
  • Salary and benefits expense per passenger increased 15 percent versus last year primarily due to an increase in the number of full time equivalents to support our growth, higher stock-based compensation expense and the continuation of the higher pay band for pilots which began in November 2012.  The current pay band will continue through April 2014 when it will be subject to adjustment based on a trailing 12 month profitability test.  Based on our forecasted profitability, we currently expect the pilot pay band to remain unchanged
  • Depreciation and amortization expense per passenger increased 8 percent primarily due to a change in estimated MD-80 engine residual values and useful life, and operating a larger contingent of 166 seat MD-80 aircraft
  • Other expense per passenger increased 31 percent due to a higher write-down of engine values in our consignment program compared to the prior year, non capitalizable information technology development costs, crew training for our growing Airbus fleet and costs to support a seasonal operating base in Los Angeles
3Q13 3Q12 Change
Total System*:
Operating expense per passenger $114.54 $108.92 5.2 %
Operating expense per passenger, excluding fuel $63.37 $56.85 11.5 %
Operating expense per ASM (CASM) (cents) 10.58 10.29 2.8 %
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) 5.85 5.37 8.9 %
Average block hours per aircraft per day 5.1 5.2 (1.9 )%

*Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Fourth Quarter 2013 Cost Trends

  • Salary and benefits expense is expected to increase due to additional staff required to support our growth
  • Maintenance and repair expense is expected to be slightly higher than fourth quarter 2012.  For the full year, maintenance expense per aircraft per month is expected to be $100 thousand to $105 thousand as previously guided
  • Aircraft utilization is expected to decline 1.5%, which will pressure ex fuel unit costs when compared to fourth quarter 2012
  • Depreciation and amortization expense is expected to increase as seven A320 aircraft are scheduled to enter service in the fourth quarter.   For the full year, depreciation per aircraft per month is expected to be between $92 thousand and $95 thousand, as previously guided

Third Party Products Performance

  • Rental car days increased 6.5 percent primarily due to a 18 percent increase in Florida passengers
  • Hotel net revenue excluding the effect of an air discount was higher by 39 percent versus last year.  The company has phased out offering an air discount which has historically subsidized hotel sales
Supplemental Ancillary Revenue Information
Unaudited (millions)
3Q13 3Q12 Change
Gross ancillary revenue – third party products $28.7 $28.3 1.4 %
Cost of goods sold ($19.6 ) ($18.5 ) 5.9 %
Transaction costs* ($0.5 ) ($0.8 ) (37.5 )%
Ancillary revenue – third party products $8.6 $9.0 (4.4 )%
As percent of gross   30.1 %   31.9 %   (1.8)pp
   As percent of income before taxes   31.3 %   33.6 %   (2.3)pp
Ancillary revenue – third party products/scheduled passenger $5.06 $5.59 (9.5 )%
Hotel room nights (thousands) 144.4 163.4 (11.6 )%
Rental car days (thousands) 195.3 183.3 6.5 %

*Includes payment expenses and travel agency commissions.

Balance Sheet Highlights

  • Repurchased 491,000 shares for $47 million and have over $43 million in repurchase authority remaining.  Year to date, the company has repurchased 880,991 shares at an average price of $85.64 per share
  • Issued $48.0 million in debt secured by four Airbus aircraft
  • Pre-paid $10.5 million in debt secured by four 757 aircraft
  • Spent $84.5 million in capital expenditures in the third quarter, the majority of which was driven by the purchase of five Airbus A320 aircraft
  • Closed a $10 million debt financing in October, secured by our new headquarters building acquired earlier this year
Unaudited (millions) 9/30/2013 12/31/2012 Change
Unrestricted cash* $303.6 $352.7 (13.9 )%
Total debt $179.7 $150.9 19.1 %
Total Allegiant Travel Company stockholders’ equity $402.4 $400.5 0.5 %
Nine months ended September 30,
Unaudited (millions) 2013 2012
Capital expenditures $161.6 $88.8 82.0 %

*Unrestricted cash includes investments in marketable securities.

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

Guidance, subject to revision
Revenue guidance October 2013 4Q13
Estimated PRASM year-over-year change 5 to 7% 3 to 5%
Estimated TRASM year-over-year change 1 to 3% 0.5 to 2.5%
Fixed fee and other revenue guidance 4Q13
Fixed fee and other revenue (millions) $3 to $5
Capacity guidance
System 4Q13 1Q14 FY13
Departure year-over-year growth (4) to 0% 8 to 12%
ASM year-over-year growth 4 to 8% 10 to 14% 8 to 10%
Departure year-over-year growth 2 to 6% 8 to 12%
ASM year-over-year growth 8 to 12% 10 to 14% 13 to 15%
Cost guidance 4Q13 FY13
CASM ex fuel – year-over-year change 4.5 to 6.5% 4 to 5%
CAPEX guidance FY13
Capital expenditures (millions) $170 to $180

 CASM ex fuel – cost per available seat mile excluding fuel expense

Aircraft fleet plan by end of period
Aircraft 4Q13 4Q14
MD-80 (166*) 51 53
MD-80 (non 166*) 1
757 6 6
A319 3 4
A320 7 9
Total 68 72

*166 refers to MD-80s that have been converted to 166 seat aircraft, non 166 refers to those aircraft that will not be converted
 Aircraft listed in table above include only in service aircraft

In other news, the company announced new, nonstop jet service from Cincinnati-Northern Kentucky International Airport to Orlando-Sanford International Airport starting on February 12, 2014 and Punta Gorda Airport beginning on February 14, 2014.

This announcement marks the 100th U.S. city served by Allegiant’s low-cost, nonstop service to popular vacation destinations, more than any other low-cost carrier in the U.S.

Copyright Photo: Tony Storck/AirlinersGallery.com. Allegiant Air’s McDonnell Douglas DC-9-82 (MD-82) N408NV (msn 53246) in the Blue Man Group special livery lands at the Las Vegas hub and base. Allegiant moved to Concourse A at LAS on October 15.

Allegiant Air: AG Slide Show

Allegiant announces 18 routes, now serves more destinations than any other low-fare airline

Allegiant Air (Las Vegas) today announced new, nonstop jet service on 18 routes, including 10 cities new to the Allegiant network. Today’s announcement will mark the 99th U.S. city served by Allegiant’s low-cost, nonstop service to popular vacation destinations, more than any other low-cost carrier in the U.S.

Allegiant will now offer service to travelers in the New York City area, providing a low-cost travel alternative to the beaches of Southwest Florida via Long Island MacArthur Airport and Stewart International Airport.

New routes just announced include:

Nonstop Service to Phoenix-Mesa Gateway Airport (AZA) in Mesa, AZ from:

  1. Fort Wayne, Indiana – begins Oct. 30, 2013 with fares as low as $99* roundtrip
  2. Manhattan, Kansas – begins Nov. 7, 2013 with fares as low as $99* roundtrip

Nonstop Service to Orlando-Sanford International Airport (SFB) in Sanford, FL from:

  1. Bismarck, North Dakota – begins Nov. 23, 2013 with fares as low as $99* roundtrip
  2. Charlottesville, Virginia – begins Nov. 21, 2013 with fares as low as $99* roundtrip
  3. Clarksburg, West Virginia – begins Nov. 14, 2013 with fares as low as $99* roundtrip
  4. Concord, North Carolina – begins Dec. 20, 2013 with fares as low as $99* roundtrip
  5. Oklahoma City, Oklahoma – begins Nov. 14, 2013 with fares as low as $99* roundtrip
  6. Portsmouth, New Hampshire – begins Oct. 25, 2013 with fares as low as $99* roundtrip
  7. Springfield, Illinois – begins Nov. 22, 2013 with fares as low as $99* roundtrip
  8. St. Cloud, Minnesota – begins Dec. 18, 2013 with fares as low as $99* roundtrip
  9. Tulsa, Oklahoma – begins Oct. 25, 2013 with fares as low as $99* roundtrip

Nonstop Service to St. Pete-Clearwater International Airport (PIE), FL from:

  1. Columbus, Ohio – begins Nov. 23, 2013 with fares as low as $99* roundtrip
  2. Elmira, New York – begins Nov. 1, 2013 with fares as low as $99* roundtrip
  3. Fargo, North Dakota – begins Nov. 23, 2013 with fares as low as $99* roundtrip
  4. Sioux Falls, South Dakota – begins Nov. 1, 2013 with fares as low as $99* roundtrip
  5. Stewart, New York – begins Oct. 31, 2013 with fares as low as $99* roundtrip
  6. Syracuse, New York – begins Nov. 7, 2013 with fares as low as $99* roundtrip

Nonstop Service to Punta Gorda Airport (PGD) in Punta Gorda, FL from:

  1. Islip, New York  – begins Dec. 20, 2013 with fares as low as $99* roundtrip

Copyright Photo: Brian McDonough/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N406NV (msn 49900) completes its final approach into Baltimore/Washington.

Allegiant Air: AG Slide Show

Allegiant to add eight new routes to Punta Gorda, Florida this winter

Allegiant Air (Las Vegas) has announced today new, nonstop jet service to Southwest Florida via Punta Gorda Airport (PGD) from eight destinations, beginning on October 30.

  1. Allentown/Bethlehem/Easton, PA – begins October 31, 2013 with fares as low as $99.99 each way
  2. Asheville, NC – begins November 2, 2013 with fares as low as $69.99 each way
  3. Bangor, Maine – begins October 30, 2013 with fares as low as $124.99 each way
  4. Cedar Rapids, Iowa – begins December 18, 2013 with fares as low as $99.99 each way
  5. Des Moines, Iowa – begins December 19, 2013 with fares as low as $119.99 each way
  6. Moline/Quad Cities, Illinois – begins November 1, 2013 with fares as low as $99.99 each way
  7. Springfield/Branson, Moissouri  – begins October 31, 2013 with fares as low as $89.99 each way
  8. Youngstown, Ohio – begins October 30, 2013 with fares as low as $89.99 each way

The expansion of routes into Punta Gorda will result in two additional McDonnell Douglas DC-9-80 (MD-80) series aircraft based at Punta Gorda Airport.

Additionally the low-fare airline announced new, nonstop, seasonal jet service from Montrose to Los Angeles, California and reintroduction of service to Mesa, Arizona (near Phoenix) beginning December 21, 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N423NV (msn 53008) departs from Los Angeles International Airport.

Allegiant Air: AG Slide Show


Allegiant Air to fly Provo-Los Angeles flights

Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Provo Municipal Airport (PVU) and Los Angeles International Airport (LAX) beginning on September 26, 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N423NV (msn 53008) departs from Los Angeles International Airport.

Allegiant Air: AG Slide Show

United Airlines unveils a new look in celebration of 25 years at Newark Terminal C

United new uniforms

United Airlines (Chicago) today will celebrate the 25thanniversary of the airline’s Terminal C hub facility at Newark Liberty International Airport.

Travelers arriving and departing at Newark Liberty today will join United employees in an anniversary celebrationbetween 11 a.m. and 1 p.m. at the upper level United Airlines ticket counter, where customers will have opportunities to earn prizes, travel discounts and bonus MileagePlus miles, and see the airline’s new uniforms for the first time. The airline is also setting up a temporary exhibit during the two-hour period demonstrating how air travel has evolved since 1988.

United Terminal C EWR (PANYNJ)(LR)

Map of Terminal C at Newark Liberty International Airport (Port Authority of New York and New Jersey).

“We are pleased to celebrate United’s long history at our Newark hub – a premier global gateway and a powerful economic engine,” said Jeff Smisek, United’s chairman, president and chief executive officer. “We continue to make investments in our terminal facilities, our services and our people to ensure United’s Terminal C remains a great place for our customers and co-workers.”

“Thanks to the Port Authority’s strong partnership with United, Newark Liberty has become not only a world-class airport but also an important driver of economic growth, jobs and development for the entire region,” said Port AuthorityChairman David Samson. “The continued investment in Newark Liberty’s facilities will ensure that the airport, and Terminal C specifically, remains a modern, premier gateway for travelers.”

As part of the event, Smisek will outline the airline’s plans for further investments at Terminal C, including:

  • a redesign of the airline’s check-in facilities
  • installation in gate areas of flight-information displays that offer customers more detailed information about their flights
  • construction of a widebody maintenance hangar that economic development officials anticipate will drive $52 million in economic activity in the region
  • a new checked-baggage screening system.

In addition: 

  • Nearly two dozen United pilots, flight attendants, customer service agents and ramp workers will participate in an in-terminal fashion show that will debut the new uniforms that United employees worldwide will wear beginning onJune 25. This is the first time that all employees at the new United will wear the same uniforms.
  • Buddy Valastro, co-owner of the Hoboken, N.J. bakery Carlo’s Bakery and star of the TLC program “Cake Boss,” will join the program to present a cake made specifically for the occasion.
  • At 1:15 p.m., the first Boeing 787 Dreamliner to fly from any of the three New York-area airports since the aircraft re-entered service will depart for Houston.
  • This afternoon, United will send photos of iconic locations throughout Manhattan via Twitter, Facebook and Instagram, meeting up with the company’s friends and followers in social media.

United logo-1

United in New York/Newark: The Hub for Wall Street

With more than 13,000 local employees, United is the New York area’s largest airline, offering more flights and more seats from the region to more destinations around the world than any other airline in history.

Since the first flight from Terminal C – the 6:15 a.m. departure of Continental flight 839 to Denver from gate 72 on the morning of May 22, 1988 – flights to and from the facility have enabled investment and economic development for theNew York metropolitan area, including Newark. In 1988, Continental offered service to 57 airports from Newark Airport.United today offers more than 400 flights each day from Newark Liberty to more than 150 destinations in North andSouth America, Europe, the Middle East and Asia, giving New York-area travelers more flights and more destinations via United and United Express than any other airline.

Newark Liberty’s location and rail links make it the most convenient hub airport for travelers originating in north and central New Jersey, parts of New York City including Wall Street, and southern New York State.

The airline also offers New York-area travelers more flat beds in premium cabins and more extra-legroom economy seats than any other airline. In addition, the airline boasts:

  • the most saver-style award seats for frequent flyers among the largest U.S. global carriers, according to the 4thannual Switchfly Reward Seat Availability Survey published this month by IdeaWorksCompany.
  • more aircraft offering satellite Wi-Fi and live television than any other U.S. airline.

Terminal C History

Copyright Photo: Dave Campbell/AirlinersGallery.com. The Boeing 737 and the pictured 727-200 were the mainstay aircraft in the PEOPLExpress fleet. Former Braniff Boeing 727-227 N553PE (msn 20774) poses for the camera at Chicago (O’Hare).

In 1985, People Express Airlines (PEOPLExpress) and the Port Authority agreed to remodel the existing Terminal C facility. After its 1987 mergers with Peoplexpress and New York Air (New York), which itself had a large Newark presence, Continental Airlines completed the terminal redevelopment project in conjunction with the Port Authority.

Copyright Photo: Fernandez Imaging/AirlinersGallery.com. The New York Air operation is pictured at nearby LaGuardia Airport.

In 2001, Continental Airlines (Houston) opened the Global Gateway, a $3.8 billion public-private partnership. The centerpiece of that project was the third concourse in Terminal C, “C-3,” designed to be bright and airy with gates constructed to enable international travelers to arrive at Terminal C – rather than solely at Terminal B – adding convenience and quicker connections.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Continental’s McDonnell Douglas DC-10-10 N68046 (msn 47800) in the 1984 livery.

The Global Gateway also introduced the only rail station at a New York-area airport located in close proximity to the terminals, enabling Newark Liberty travelers direct AirTrain rail access to New York City’s Pennsylvania Station, New York State, New Jersey, Connecticut and Philadelphia.

Continental and the Port Authority also outfitted Terminal C with new roadways, parking garages, expanded electronic ticketing facilities, new terminal designs to facilitate more efficient security screening and an automated baggage handling system.

Top Copyright Photo: United Airlines. Crew members showcase the new uniforms.

United Airlines: AG Slide Show

Continental Airlines: AG Slide Show

Peoplexpress: AG Slide Show

New York Air: AG Slide Show

Route Map: How the Newark Hub has grown (click on the map for the full-size view):


SAS finally gets all of its unions to agree to its 4XNG austerity program

Scandinavian Airlines-SAS‘ (Stockholm) self-imposed deadline looms today ahead of its board meeting. The airline set the deadline with its unions to accept salary cuts up to 17 percent and job cuts from 15,000 to 9,000. So far the unions have not agreed to these drastic cuts according to this update by Reuters. SAS says it needs these cost reductions in order to compete with low-fare carriers such as Ryanair and Norwegian. Norwegian is planning lower-fare Boeing 787 trans-Atlantic flights for next summer.

The company has issued the following statement:

Intense negotiations have taken place over the past few days. Unfortunately no agreement with any of the unions has yet been reached. Negotiations are continuing, and as previously announced, there must be a solution before the SAS Board of Directors meets later today, Sunday. At the meeting, the Board will decide if the conditions for implementing the plan exist. Full implementation of the plan is a condition for the banks and the major owners to provide access to the necessary funding. Until the Board meets, intensive work will continue to reach an agreement on new collective agreements and thus to secure the future of SAS.

Read the full report: CLICK HERE

Update: On November 19 SAS announced it has obtained agreement from all of its unions for the new plan. The pilots union is subject to a ratification vote. The company issued the following statement on November 19:

8 of 8 new union agreements have been signed November 19 – The Danish Pilot Union Agreement is conditional upon approval by one third of its members.

4Excellence NG is targeting approximately 3 bn SEK of annual improvement from cost reductions and organizational restructuring and approximately 3 bn SEK increased liquidity from asset sales

New 3.5 bn SEK Revolving Credit Facility from Banks and Core Shareholders to secure financial preparedness conditional on final parliamentary approvals and approval of the Danish Pilot Union Agreement from one third of the members of the Danish Pilot Union.

On November 12 the Board of SAS approved the 4 Excellence Next Generation (4XNG) plan to address the issues facing SAS. The 4XNG plan will improve EBT by approximately 3 bn SEK on an annualized basis and improve the overall cost flexibility through:

· New union agreements for personnel

· Centralization of administration functions

· Reduction of compensation to market levels

· New pension terms

· Outsourcing of Call Centers and Ground Handling

SAS also communicated that it has reached a conditional agreement to increase its existing 3.1 bn SEK revolving credit facility to 3.5 bn SEK and extend the term of the facility to March 31, 2015.

This new revolving credit facility is being provided by seven current lenders and SAS’ core shareholders (The Kingdom of Denmark, the Swedish State, the Kingdom of Norway and KAW) on equal terms. The availability of this new revolving credit facility is subject to final documentation, parliamentary approval where required, and it is conditional on signed union agreements that are a central and integral part of the 4XNG plan.

The condition to have 8 union agreements signed have been fulfilled on November 19, 2012, subject to a ballot approval by one third of the members of the Danish Pilot Union to be finalized in the next few days. The availability of the new revolving credit facility is still subject to parliamentary approvals (where required).

Copyright Photo: Paul Denton. The older and less fuel-efficient aircraft, like this McDonnell Douglas DC-9-82 (MD-82) OY-KHM (msn 49914) landing at Geneva, will be phased out. SAS has a diverse fleet and will have to reduce the number of aircraft types it operates besides obtaining these drastic cuts from its personnel.

Scandinavian Airlines-SAS: 

Alitalia to retire the last McDonnell Douglas DC-9-82 (MD-82) on October 27

Alitalia (2nd) (Rome) is planning to operate the last McDonnell Douglas DC-9-82 (MD-82) revenue flight on October 27 per Airline Route. The last trip will be a round-trip Rome (Fiumicino)-Catania-Milan (Linate)-Catania-Rome (Fiumicino) routing.

Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-82 (MD-82) I-DATI (msn 53218) taxies at Palma de Mallorca.


American Airlines and the Allied Pilots Association go back to the negotiating table again

American Airlines (Dallas/Fort Worth) and the Allied Pilots Association (APA), representing the the AA pilots, went back to the negotiating table yesterday. The pilots have been working without a contract.

Read the full report from Reuters: CLICK HERE

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-82 (MD-82) N7531A (msn 49923) climbs away from Los Angeles International Airport.

American Airlines: 

American may eliminate 11,000 positions

American Airlines (Dallas/Fort Worth) has sent notices to more than 11,000 employees they could lose their jobs as part of its Chapter 11bankruptcy reorganization according to this report by Reuters. AA is also cutting flights by one to two percent for the rest of September and October.

Read the full report: CLICK HERE

Copyright Photo: Bruce Drum. McDonnell Douglas DC-9-82 (MD-82) N411AA (msn 49322) arrives at Las Vegas. More DC-9-82s and DC-9-83s are likely to be retired.

American Airlines: