Tag Archives: MD-11F

Lufthansa Cargo to bring home the remains of the victims of Germanwings flight 4U9525

Lufthansa Group (Frankfurt) tomorrow (June 9) will operate a special Lufthansa Cargo (Frankfurt) McDonnell Douglas MD-11F flight from Marseille to Dusseldorf which will bring home the remains of the victims of Germanwings (Cologne/Bonn) ill-fate flight 4U9525 which crashed in the French Alps. Transfer of the remains to the victim’s families will occur on June 10. Lufthansa Cargo will operate more flights in the coming weeks until the end of June. The group issued this statement:

Lufthansa Group logo

Lufthansa is working with all its available resources to ensure the repatriation and transfer of victims of the Germanwings flight 4U9525 to the relatives in the originally planned schedule. To start off the repatriation flights, Lufthansa will arrange at short notice a special flight with a MD-11 of Lufthansa Cargo from Marseille to Dusseldorf. The plane will take off from Marseille on June 9 at 20:50 and is expected at Dusseldorf at 22:30. There will be 30 coffins of the victims of flight 4U9525 on board.

The repatriation of the victims was initially scheduled for next week. At short notice, however, a delay had resulted due to regulatory requirements. The Federal Government Commissioner for the victims’ relatives had then turned immediately to the authorities and received assurances that preparations for repatriation could be made immediately.

After this first special flight to Dusseldorf, the other victims will be gradually transferred to their home countries in the coming weeks. The French authorities are working hard in order to create the formal conditions for the transfer of the victims as soon as possible. Lufthansa is in close contact with the relatives to ensure that the transfer of the victims is carried out according to the relatives’ wishes.

Germanwings black logo

Copyright Photo: Pascal Simon/AirlinersGallery.com. McDonnell Douglas MD-11F D-ALCM (msn 48805) departs from the Frankfurt cargo hub.

Lufthansa Cargo aircraft slide show: AG Airline Slide Show

FedEx Express early retires 15 aircraft, adjusts the retirement schedule for 23 additional older aircraft

FedEx Corporation (FedEx Express) (Memphis) has announced it has permanently retired 15 aircraft and 21 related engines as it continues to rationalize capacity and modernize its aircraft fleet to more effectively serve FedEx Express customers.

The company continued;

FedEx Express logo (large)

The permanent retirement of aircraft and related engines includes:

Seven McDonnell MD-11F airframes and 12 related engines;

Three Airbus A300 airframes and three related engines;

Four Airbus A310-300 airframes and three related engines; and

One McDonnell Douglas MD10-10 airframe and three related engines.

The impact of retiring these aircraft, engines and related parts resulted in a non-cash impairment charge of $246 million recorded in May 2015.

FedEx has also adjusted the retirement schedule of an additional 23 airframes and 57 engines.

FedEx also recognized in May 2015 $30 million in cash charges associated with these actions.

These combined retirement changes will not have a material impact on near-term depreciation expense.

FedEx Express fleet as of February 28, 2015:

FedEx Express Fleet 2.28.15

Notes:

1 – February 28, 2015 Boeing 757 count includes 21 aircraft that are not currently in operation, 5 of which are in the modification process and 16 of which are awaiting modification.

2 – As of February 28, 2015 Boeing 767 count includes 3 aircraft that are not in operation and are in the modification process. As of February 28, 2015, FedEx is committed to purchase 44 B767Fs. Aircraft to be delivered statistics include certain lease additions and expirations.

3 – As of February 28, 2015, FedEx is committed to purchase 18 Boeing 777Fs.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Seven MD-11Fs were retired. McDonnell Douglas MD-11 (F) N595FE (msn 48553) climbs away from Anchorage.

FedEx Express aircraft slide show: AG Airline Slide Show

Nordic Global Airlines to shut down on May 31

Finnair logo

Finnair (Helsinki) has issued this statement about the future of partially-owned Nordic Global Airlines-NGA (Helsinki):

Nordic Global Airlines-NGA logo

The Board of Directors of Finnair’s associated company Nordic Global Airlines Ltd (NGA) has decided to discontinue NGA’s operations by May 31, 2015. The termination of the operations has no material impact on Finnair’s cargo business, or Finnair’s financial position. NGA, focused on cargo freighter operations, was founded in 2011. Since then NGA grew to fly main-deck cargo in four continents with its low-cost and thin-organization model, but with overcapacity in the sector and depressed freight pricing, the cargo airline’s decision to cease operations was unavoidable.

Finnair Cargo Oy owns 40 percent of the company, and other shareholders are Neff Capital Management LLC, Daken Capital Partners LLC and the Mutual Pension Insurance Company Ilmarinen. Between 2011 and 2014, Finnair leased freighter capacity from NGA for its mainly Asian cargo traffic. Finnair’s belly cargo capacity will increase significantly in the coming years, when new A350 aircraft join Finnair’s fleet. Finnair has decided to focus in future on cargo carried in the cargo holds of passenger aircraft and discontinued separate cargo freighter operations at the end of 2014.

NGA was operating four McDonnell Douglas MD-11F freighters.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Despite the elaborate NGA logo, the NGA aircraft usually operated with only small titles and non-descript white fuselages. McDonnell Douglas MD-11 (F) OH-LGD (msn 48513) arrives at Las Palmas in the Canary islands.

Air France-KLM’s first quarter loss widens

Air France-KLM Group (Air France, KLM Royal Dutch Airlines, Transavia Netherlands, Transavia France, Hop! and Martinair) reported a first quarter net loss of €504 million ($56.9 million), compared to a net loss of €485 million ($546 million) in the same quarter a year ago.

Read the full report: CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. The group retired three Boeing 747 freighters in the Winter 2014-15 season, while another five Martinair McDonnell Douglas MD-11s will be retired by the end of the Winter 2015-16 season. The Group plans to operate only five full-freighters by the end of 2016. McDonnell Douglas MD-11 (F) PH-MCS (msn 48618) of Martinair taxies at the Amsterdam cargo hub.

Air France aircraft slide show: AG Airline Slide Show

KLM aircraft slide show: AG Airline Slide Show

Martinair aircraft slide show: AG Airline Slide Show

EVA Air retires its last McDonnell Douglas MD-11

EVA Air (Taipei) today (March 23) operated its last McDonnell Douglas MD-11 flight. The pictured MD-11F B-16113 (msn 48790) departed Taipei (Taoyuan) at 0840 local time as EVA Air Cargo flight BR 606 to Anchorage. EVA Air was the last operator of the tri-jet in Taiwan. China Airlines and Mandarin Airlines previously also operated the type.

EVA Air logo

EVA Air operated the MD-11 as a passenger aircraft from 1992 through 2003 and was down to just the one MD-11F freighter for today’s retirement.

EVA Air Cargo logo

EVA Air Cargo continues to operate the Boeing 747-400 freighter. EVA Air is considering adding the more efficient Boeing 777F freighter in the future.

In other news, EVA Air on June 19, 2015, EVA Air will be launching new nonstop passenger flights to Houston (Bush Intercontinental) (IAH).

 

Copyright Photo: Manuel Negrerie/AirlinersGallery.com. B-16113 departs from Taipei (Taoyuan).

EVA Air aircraft slide show: AG Airline Slide Show

AG Full screen views

Martinair to further reduce its freighter fleet by June 2016, the MD-11Fs to be retired

Martinair Cargo (Amsterdam) will scale back its freighter fleet by June 2016 and will continue as a freighter operator for the Air France-KLM-Martinair Cargo group using three Boeing 747-400 ERFs and a Boeing 747-400 BCF. This means the remaining McDonnell Douglas MD-11F freighters will be phased out.

 

KLM has issued this statement:

The company has reached this decision after a thorough deliberation with all the parties involved.

In September 2014, Air France-KLM-Martinair Cargo announced it would be reducing the amount of freighter capacity it needs in its network. Both KLM and Martinair Cargo have discussed the consequences of this decision with the works councils. The decision to scale back the full-freighter fleet has been taken to restore the division’s financial health. The decision will affect more than 330 employees.

Air France-KLM-Martinair Cargo group has decided on a business model which requires less freighter capacity, rather than a model with no freighters at all. Consequently, as an operating carrier within the KLM Group, Martinair Cargo will scale back its fleet and use just one type of aircraft (Boeing 747). This decision affects around 170 ground staff FTEs in the Netherlands, 50 FTEs abroad and 110 cockpit FTEs.

The company will do its utmost to reassign ground staff within the KLM Group using existing instruments, the scope of which may be extended to include voluntary redundancy. This will take place in close consultation with the unions and will only apply to employees working in areas where a staff surplus arises.

A number of voluntary measures have recently been rolled out for pilots at Martinair Cargo. Reassignment options within the group have been explored over the last few months and a number of pilots have taken the step to join Transavia. Recent changes in the financial conditions mean KLM is unable to offer pilots the same salaries they were receiving at Martinair. With KLM’s help, Martinair will continue to make every effort to find solutions for the pilots outside the KLM group. Negotiations between Martinair Cargo and the unions are ongoing and are based on the existing collective labour agreement (CLA). However, the possibility of compulsory redundancies cannot be excluded. Air France-KLM-Martinair Cargo deeply regrets the social consequences of these changes, but the reduction is unavoidable if the cargo business is to be restored to good health.

From 2016, Air France-KLM-Martinair Cargo will continue to operate with a main frame fleet of six Full Freighters (two Boeing 777Fs at Paris Charles De Gaulle and four Boeing 747-400s at Amsterdam Schiphol), supplemented by 15 Boeing 747 Combi’s.

Air France-KLM-Martinair Cargo is convinced that the remaining flexible freighters will continue to provide its clients with a full range of solutions to meet their needs. The freighter network at Schiphol will concentrate on Africa and North, Central and South America and will, of course, continue to serve important markets, such as the flower sector. The company will also continue to invest in Cargo (Express, Pharma, e-commerce).

Cargo remains a core business for the Air France-KLM Group. It generates income of EUR 2.5 billion per year and contributes around EUR 1 billion a year to the passenger network. It goes without saying that pulling out of the cargo business is out of the question.

Copyright Photo: Mark Durbin/AirlinersGallery.com. McDonnell Douglas MD-11 (F) PH-MCR (msn 48617) is pictured at San Francisco International Airport (SFO).

Martinair aircraft slide show: AG Airline Slide Show

AG We are not A.net

Finnair to get out of the dedicated freighter business

Nordic Global MD-11F OH-LGC (white)(Grd) HEL (MF)(LRW)

Finnair (Helsinki) is getting out of the dedicated freighter business by the end of this month according to ch-aviation. The Finnish carrier will depend on belly cargo in the future using its own passenger aircraft. Currently its dedicated freighter operation is provided by partial owned (40%) Nordic Global Airlines (NGA) which operates four McDonnell Douglas MD-11F freighters mainly for Finnair. It is unclear if NGA will continue to operate its ACMI operations after Finnair stops all dedicated freighter operations.

NGA-Nordic Global Airlines logo

Nordic Global describes its operations:

Nordic Global Airlines Ltd (NGA) is a Finnish all cargo carrier based in Helsinki-Vantaa Airport, Finland. NGA focuses on ACMI and Cargo Charters worldwide and operates under EASA AOC.

NGA has a highly dedicated and experienced team to manage the operations. As a young and dynamic company we are able to deliver the right ACMI and Charter services to our customers.

At the beginning of 2014 NGA operates a fleet of four MD-11F freighters for long-term ACMI customers and on ad-hoc charter basis.

Since the commencement of the commercial operations in August 2011 NGA has performed more than 2,000 flights to our customers satisfaction.

Route Map for NGA:

Web

Copyright Photo: Marco Finelli. Former Finnair McDonnell Douglas MD-11 (F) OH-LGC (msn 48512) wears only small Nordic Global Airlines titles at its Helsinki base.

FedEx Express increases the number of countries for its International First® early delivery service to 97

FedEx is expanding solutions for global customers who need their critical deliveries to arrive as early as the start of the next business day.

FedEx Express (Memphis), a subsidiary of FedEx Corporation, and the world’s largest express transportation company, is broadening the FedEx ‘International First®’ early delivery service, increasing the number of origin markets to include the following:

Austria

Bahrain

Belize

Bolivia

China

Czech Republic

Denmark

Ecuador

El Salvador

Finland

Guiana (Guyana)

Guyana

Honduras

Hungary

India

Indonesia

Korea

Kuwait

Malaysia

Nicaragua

Norway

Paraguay

Peru

Philippines

Portugal

Poland

Singapore

Suriname (Surinam)

Sweden

Thailand

United Arab Emirates

This expansion brings the total number of origin markets to 97, and means that customers can now use FedEx International First to ship packages from the above countries to any of the existing International First destination markets.

Depending on origin and destination, FedEx International First shipments arrive within one to three business days, often at the start of the business day. The service is most often used for business documents, electronic and high tech equipment, medical devices, clinical trials and gear for the entertainment industry–shipments that require delivery on a tight deadline.

About FedEx International First

FedEx International First is a time-definite, customs cleared, door-to-door express service with a pre-defined delivery commitment for shipments up to 150 lbs. per package. Customers receive International First deliveries as early as 8 a.m. in the United States, 9 a.m. in Europe, and 10 a.m. in Asia, Canada and Latin America. While the range of shipments is broad, it’s often the delivery service of choice for customers shipping time-sensitive materials.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas MD-11 (F) N644FE (msn 48444) lands in Anchorage.

FedEx Express: AG Slide Show

Air France-KLM to retire the Martinair McDonnell Douglas MD-11 freighters in 2015 and 2016, will expand Transavia leisure flights

Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) (Air France-KLM Group) issued this statement about its shrinking and unprofitable freighter fleet including Martinair‘s (Amsterdam) McDonnell Douglas MD-11 freighter fleet:

At its meeting on September 4, 2014, the Air France-KLM Board of Directors examined the findings of the strategic review of its full-freighter operations which was launched earlier this year.

On top of the ongoing reduction of the full-freighter fleet, and facing a slower than expected recovery in demand, the Board of Directors has decided to reduce the full-freighter fleet based in Amsterdam to 3 aircraft in operation by the end of 2016. Five MD-11s will be phased out on an accelerated basis during 2015 and 2016.

By then, the Group will operate five full-freighter aircraft: 2 Boeing 777Fs in Paris and 3 Boeing 747 ERFs in Amsterdam, compared with a total of 14 in 2013.

The group intends to find alternative employment internally for all affected staff. It will engage in consultations on this matter with the Works Council and trade unions of the companies involved.

The Group will remain a major player in the cargo sector in Europe through its extensive belly network effectively supplemented by a limited number of full-freighter aircraft.

This adjustment of the full-freighter fleet is part of a broader strategic vision designed to increase cargo contribution to the group. Other measures include a strong focus on specialized products such as pharmaceuticals and express, as well as investment in state-of-the-art IT infrastructure and E-developments, further cost reduction and expansion of partnerships.

In other news, the Air France-KLM Group will expand its leisure operations under the Transavia brand with new bases outside of Paris and Amsterdam. The Group issued this statement:

At its meeting on September 4, 2014, as proposed by its Chairman and CEO Alexandre de Juniac, the Air France-KLM Board of Directors approved the group’s development project on the leisure market in Europe.

This development will take place under the Transavia brand from the two existing airlines – Transavia France and Transavia the Netherlands – and new bases will be opened in other European countries.

This project will strengthen the development of Transavia France (Paris) and Transavia Airlines (Amsterdam) in the Netherlands. The terms of these developments are the subject of consultations in both countries.

The group is positioning itself as a major player in this rapidly growing market in Europe.

This project is part of the group’s new plan for growth and competitiveness, Perform 2020, which will be presented in details to investors and to the press on September 11.

Air France-KLM have also unveiled its new “Perform 2020” program which replaces its “Transform 2015” program. Here is the formal plan:

Air France-KLM unveiled its new Perform 2020 strategic plan.

Perform 2020 is the successor to Transform 2015, which represented the first phase in the Group’s turnaround. While maintaining the imperatives of competitiveness and the ongoing strengthening of the Group’s financial position, this growth plan will focus on the following three strategic areas:

  •   Selective development to increase exposure to growth markets
  •   A product and services upgrade targeting the highest international level
  •   An ongoing improvement in competitiveness and efficiency within the framework of strictfinancial disciplineAir France-KLM’s Chairman and Chief Executive Officer, Alexandre de Juniac, made the following comments:
    “Transform 2015 will be completed by the year end having fully delivered on its objective of significantly improving the Group’s competitiveness and delivering a €1 billion-plus reduction in costs. Perform 2020, the strategic plan we are launching today, will be supported by two main levers: growth, which we are looking to capture in a number of areas, and competitiveness combined with financial discipline which should continue to ensure firm foundations for the development of Air France-KLM. This is why the ambitious initiatives we are launching today will go hand in hand with redoubled efforts to reduce costs and restructure activities which remain loss-making. By 2020, we will have built an air transport Group focused on a leading long-haul network at the heart of global alliances, with a portfolio of unique brands, restructured short and medium-haul operations with a reinforced presence in the low cost segment in Europe, leadership positions in cargo, maintenance and catering, and a significantly improved risk profile both operationally and financially.”

    1 See definition in appendix
    2 At constant currency, fuel price and pension cost

Business review

In an environment which remains challenging but with profitable growth opportunities across all the Group’s markets, Air France-KLM plans to reinforce its key strengths, namely its network, its products and services, and its brands, while adjusting its portfolio of activities.

The development of the passenger hub business based on an upgraded product offer, an increased customer focus and a stronger positioning of brands. Benefiting from the broadest long-haul network on departure from Europe, the Group will be able to continue to capture growth opportunites particularly via the reinforcement of strategic partnerships.

The Group will maintain strict capacity discipline with growth in passenger capacity expected to be around 1% to 1.5% for the 2015-2017 period.

The Group will continue to restructure its point-to-point operations, aiming at a return to operating breakeven by 2017. In addition to the full impact of the measures launched in 2013, this objective will be reached thanks to new initiatives to restructure the network and reduce costs, together with the creation of a single business unit combining HOP and the Air France point-to-point operations.

The accelerated development of Air France-KLM in the European leisure market, under the Transavia brand, based on the two existing companies – Transavia France and Transavia Netherlands – and new bases to be created in other European countries. In a growth market, the Group plans to build on the results achieved within the framework of Transform 2015 to move to a more pan-European scale. By 2017, Transavia will rank amongst the leading low cost carriers in Europe, operating a fleet of 100 aircraft and carrying more than 20 million passengers. This business should contribute an additional €100 million of EBITDAR in 2017. With profitability being impacted by ongoing ramp-up costs, the Group is targeting operating profits by 2018.

The finalization of cargo repositioning: a significant reduction in the full-freighter fleet, from 14 aircraft in operation in 2013 to 5 aircraft at the end of 2016, should enable this business to return to operating breakeven in 2017 (versus a loss of €110 million in 2013 and a €200 million loss including bellies). The group will maintain a small full-freighter fleet as an important commercial lever to support its revenue premium on bellies. The Group will remain a major player in the European cargo sector thanks to its extensive belly network, but with only very limited remaining exposure (15% of capacity) to full-freighter volatility.

The recent development of the maintenance business has proven successful, with increased profitability and rapid growth in the order book. The Group will pursue its growth in this segment, particularly in engines and components, including via targeted acquisitions. This business should generate an additional €50 million to €80 million of EBITDAR in 2017, depending on acquisitions.

From a selective capex management while adopting a disciplined approach to growth opportunities. financial perspective, Air France-KLM plans to pursue the reduction in its unit costs and The Group will leverage the structured approach implemented within the framework of Transform 2015 to maintain unit cost reduction at an annual rate of 1% to 1.5%. To achieve this target, the group will go beyond traditional efforts directed at reducing unit costs (e.g. reduction in external expenses, purchasing policy and renewal of the long-haul fleet). This will involve the ongoing restructuring of uncompetitive activities and implementing a systematic review of processes using benchmarking based on profit centers. It will also entail negotiating with staff on the achievement of productivity gains paving the way to growth.

A progressive increase in fleet capex will be undertaken within the framework of strict capex control. Investment will remain below its pre-2012 level. Dedicated sources of funding will be allocated to significant development opportunities to ensure control over credit ratios. For example, the first phase in Transavia expansion will be financed by the €339 million proceeds generated from the partial disposal of Amadeus shares on September 9.

Medium-term financial targets to 2017

As a result of all these initiatives, Air France-KLM has set itself the following Group financial targets:

  •   EBITDAR up by 8% to 10%5 per year between 2013 and 2017
  •   An adjusted net debt/EBITDAR4 ratio of below 2.5 in 2017
  •   Base businesses to consistently generate annual positive free cash flowThese targets are consistent with a ROCE of 9% to 11% in 2017.

Read the analysis by Bloomberg Businessweek: CLICK HERE

Top Copyright Photo: Keith Burton/AirlinersGallery.com. Martinair’s McDonnell Douglas MD-11 (F) PH-MCS (msn 48618) prepares to land at London’s Stansted Airport.

Air France: AG Slide Show

KLM: AG Slide Show

Martinair: AG Slide Show

Transavia Airlines (Netherlands): AG Slide Show

Transavia Airlines (France): AG Slide Show

Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Transavia Airlines’ (Netherlands) Boeing 737-8K2 PH-HZA (msn 28373) with a Kulula underside taxies at the Amsterdam base.

 

Western Global Airlines receives its Part 121 AOC, will start cargo operations with two MD-11Fs

WGA logo

Western Global Airlines-WGA (Sarasota/Bradenton) according to ch-aviation, will begin cargo operations with a fleet of two McDonnell Douglas MD-11 freighters (N415JN, msn 48415 and N435KD, msn 48435). Both freighters will be leased from Neff Air. The company has issued this statement:

Western Global Airlines LLC (WGA), a low cost, high quality all-cargo carrier, announced on August 4 that it received final FAA certification and has been issued a Part 121 Air Operator Certificate. In addition, WGA has been certified by the U.S. DOT to be fit, willing, and able to engage in interstate and foreign air transportation of property and mail. WGA plans to commence operations immediately.

Founder and CEO, Jim Neff, said, “We are very pleased by these approvals. As the first newly certified U.S. based wide-body air cargo operator in almost a decade, WGA is poised to offer the global marketplace a new large-scale, customer-oriented platform, focused on low cost, flexible service and high reliability. We also expect to benefit from the relative shortage of wide-body cargo carriers in the market today.” In addition to being WGA’s CEO, Mr. Neff also serves as CEO and Chairman of Helsinki based Nordic Global Airlines, Ltd. (NGA) and has had an unparalleled career in air cargo and aviation dating back to Flying Tiger Line, Continental Airlines, Emery Worldwide and Burlington Air Express. He was the founder and CEO of Southern Air Inc. from 1999 until 2010.

Mr. Neff added, “For me, this is the culmination of a lifelong dream. Having created and built the air systems for many of the leading U.S. based cargo operators over the past 30 plus years, I believe that the current global economic reality calls for freighter services to be both lower cost and more responsive to customers. This is the driving force and the vision behind WGA.”

WGA’s management team was hand-picked by Mr. Neff from among the industry’s most knowledgeable and experienced innovators. The company will begin operations with a fleet of MD-11Fs leased from Neff Air LLC, an affiliated leasing company which owns ten GE powered MD-11Fs and two GE powered 747-400BCFs directly without debt. WGA’s business plan is based on enabling its customers to profitably grow their air cargo business by seamlessly outsourcing all or part of their freighter operation to WGA. WGA’s sister company, NGA, has been providing low cost, flexible, and reliable service to the European market for the past three years with a fleet of four MD-11Fs leased from Neff Air. Going forward, the company expects to develop the WGA/NGA platforms jointly to achieve marketing and operational synergies to maximize service responsiveness, flexibility, and operating efficiencies.