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Airberlin Group takes delivery of the first Airbus A320 with Sharklets

Niki A320-200 WL OE-LER (Airberlin 08)(Grd) XFW (Airberlin)(LR)

Airberlin Group (Berlin) on March 26 took delivery of its first Airbus A320 with the new Sharklets wing tip device. The pictured A320-214 OE-LER (msn 5522) will be operated by Niki (Vienna).

The group issued this statement:

OE-LER, welcome to our fleet! The Airberlin Group became one of the first airlines in the world to receive its very first Airbus A320 equipped with fuel-saving Sharklets at the Airbus factory in Hamburg on March 26, 2013. The development sees the company further strengthen its position as Europe’s most eco-efficient network carrier.

The aircraft with the Airbus manufacturer’s serial number msn 5522 will fly under the registration OE-LER for the airline Niki, which belongs to the Airberlin Group. Following test flights and extensive technical checks, the transfer of title of the aircraft to the Airberlin Group took place on March 25 before the March 26 ferry flight from Hamburg to Vienna, the home of Niki.

Commenting on the delivery, Ulf Hรผttmeyer, Chief Financial Officer airberlin, said: “The new Airbus is the first of a total of 14 Airbus A320/A321 aircraft with the fuel-saving wingtips to be delivered to the Airberlin Group. The Sharklets represent an important aspect of our โ€˜Eco-Efficient Flyingโ€™ program and will contribute towards making the Airberlin and Niki fleet even more efficient and environmentally compatible in future. The delivery of the first Airbus with Sharklets to Niki is part of a sales and lease back transaction between our company and the Chinese leasing company ICBC Financial Leasing with which we have already been working together successfully and reliably for several years in the area of aircraft financing.”

As part of the sales and lease back cooperation arrangement with ICBC Financial Leasing, the Airberlin Group is to add another Airbus A320 with Sharklets to its fleet in June of this year.

The two-and-a-half meter large upward wingtip extensions reduce air vortices at the wings and hence the lift-induced drag. The eye-catching Sharklets developed by Airbus thereby significantly improve the wing aerodynamics and are capable of saving around 1,200 tonnes of CO2 emissions with fuel savings of up to 3.5% per aircraft each year. This represents 55 flights from Berlin to Palma de Mallorca per aircraft every year. Sharklets work according to a functional principle by which the improved lift effect also enables the Airbus equipped with Sharklets to ascend more quickly. This in turn reduces noise on the ground.

Copyright Photo: Airberlin.

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Airberlin returns to profitability with a net profit of $8.8 million in 2012

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Airberlin (airberlin.com) (Berlin) is enjoying a financial turnaround. The company recorded a record net profit of $8.8 million in 2012. The company issued this statement:
  • Net result of EUR 6.8 million, 33.3 million guests
  • Group revenue of EUR 4.31 billion, capacity utilization and yield increased
  • Strategic partnership with Etihad Airways provides joint revenue of EUR 100 million, new code share routes expected to provide further growth
  • First โ€œTurbineโ€ measures started – EUR 400 million until the end of 2014
  • 180 positions already cut between January and the end of March 2013
  • As of summer 2013, the Berlin and Dusseldorf hubs will be strengthened with increased flight frequencies and new destinations
  • Revenue growth with fewer routes and increased frequencies: routes will be reduced from 523 in summer 2012 to 438 in summer 2013.
  • Fleet reduction by twelve aircraft to 143 aircraft by the end of 2013
  • The goal for 2013 is operational profitability, break-even at the EBIT level

Over the first months of the year, airberlin, Germanyโ€™s second-largest airline, implemented numerous measures of the โ€œTurbineโ€ turnaround program. At todayโ€™s press conference on the 2012 results, airberlinโ€™s CEO Wolfgang Prock-Schauer stated: โ€œWith Turbine, we are setting up airberlin in line with the market. We are becoming leaner, faster and are, at the same time, continuously improving our service and flight offers. In the first months of 2013, we have initiated a number of measures. It goes without saying that such programs have a start-up phase and start-up costs. We will reach โ€˜cruising altitudeโ€™ by the end of 2014.โ€

This two-year program will enable Germanyโ€™s second-largest airline to further expand its presence in core markets and to make structural changes aimed at making the company sustainably fit for the future. For that purpose, airberlin will further promote its integrated business model through which the company caters to tourist travelers and business clients. Up to the end of 2014, the Turbine program includes initiatives of approximately EUR 400 million, so as to achieve a sustainably competitive profit situation.

Turbine program with multiple measures started

The turnaround program comprises in particular the areas network and fleet, sales & distribution, products and services as well as operations. The first Turbine measures have already been implemented in this yearโ€™s summer flight schedule. The optimized offer strengthens airberlinโ€™s presence in Europe and further expands the long-haul connections to North America. airberlin is carrying out the network optimization by using the principle of increasing frequencies on economically profitable routes. The target is a robust network that is less susceptible to seasonal fluctuations and provides for more productive aircraft and personnel. As a result the airline is strengthening its long-haul hubs Berlin and Dusseldorf with additional long-haul frequencies and improved flight connections. These will increase in Berlin from ca. 7,600 to ca. 11,000, and in Dusseldorf from ca. 3,000 to ca. 4,050. At both airports, the number of weekly flight frequencies will grow by a total of 61 additional connections as compared to the previous year. At the same time airberlin has reduced economically unprofitable routes, with the number of routes decreasing from 523 to 438 on an annual comparison. With the optimized flight schedule, the fleet will be reduced from 155 aircraft at the end of 2012, to 143 aircraft at the end of 2013.

Network and station optimization will result in increased crew productivity. In the future, comprehensive aircraft maintenance (Base Maintenance) will only be carried out in Munich.

In connection with the restructuring cost reductions in personnel are necessary. Between January and the end of March 2013, 180 jobs will have been eliminated.

Airberlin is expanding its service in line with passenger requirements. From mid-year onwards, a modular catering concept will be introduced on the short and medium-haul flights. This will provide passengers with services commensurate with the duration of the flight. An example is the new Business Class seats introduced on long-haul flights.

Net profit for 2012

Airberlin concluded the 2012 business year with a return to profitability. The operating profit before interest and taxes (EBIT) of EUR 70.2 million was a significant improvement over the previous year results. The companyโ€™s net income of EUR 6.8 million marks a return to profitability and follows a loss of reported EUR 271.8 (restated: -420.4 million) in the 2011 business year.

In the past year, Airberlin increased its group revenue to EUR 4.31 billion (2011: EUR 4.23 billion). While the number of passengers decreased by 5.5 per cent to 33.3 million (previous year: 35.3 million), capacity utilisation increased by 1.6 percentage points to 79.80 per cent (previous year: 78.21 per cent). This was achieved by a further fleet reduction of 15 aircraft to 155 aircraft and improvements of the flight schedule. Yield (revenue per passenger) improved by 7.7 percent to EUR 120.05 (previous year: EUR 111.43).

The spin-off of the frequent-flyer program โ€œtopbonusโ€, the implementation of the efficiency program โ€œShape & Sizeโ€ and the increasing synergy effects resulting from the strategic partnership with Etihad Airways have contributed to the positive development of the operating result. In this context, Shape & Size has contributed EUR 250 million.

โ€œThe profit of the past financial year and the successful placement of the convertible bond enabled us to further stabilize the financial basis of the company. The favorable conditions, the swift placement and over-subscription of the bond demonstrate the marketโ€™s confidence in our company,โ€ stated airberlinโ€™s Chief Financial Officer, Ulf Hรผttmeyer. The goal for 2013 is a break-even at the EBIT level and therefore operational profitability.

The strategic partnership with Etihad Airways, which started at the beginning of 2012, has already shown positive effects within less than 12 months. By the end of 2012, codeshare routes enabled the two airlines to generate together a revenue increase of EUR 100 million. airberlin and Etihad Airways have already concluded almost 100 agreements with companies and sales partners and through synergies have further increased revenue and reduced operating costs. By further expanding codeshare routes with other Etihad Airways partners, airberlin will be able in the future to offer more destinations and increase revenue generated by codesharing. Furthermore, the strategic partnership is increasingly reducing costs for both airlines. For example, in the areas of procurement, maintenance, training and product harmonization, the two airlines are increasingly making use of their synergy potentials and expect these to reach their full potential in the coming years.

Global network established

Wolfgang Prock-Schauer assesses the advantages of the strategic partnership with Etihad Airways: โ€œOur cooperation with Etihad Airways exceeds all our expectations.โ€ This cooperation enabled Airberlin to set up a global route network in the course of the past year. Within one year, Etihad Airways and Airberlin have increased the number of codeshare routes to 90 connections and are flying to a combined 239 destinations in 77 countries. In 2012 alone, more than 320,000 passengers used the common flight network.

Airberlinโ€™s membership in the global airline alliance,ย oneworldยฎ, which started in March 2012, is also positive. The number of passengers traveling on these codeshare routes increased to 310,000 passengers.

Airberlin CEO Wolfgang Prock-Schauer added: โ€œOur optimized route network together with the global network of our partners will enable us to be sustainably successful in the future. For that purpose, we need a functional hub in Berlin and the new airport BER that adheres to the operating times as foreseen in the official planning.โ€

Copyright Photo: Andi Hiltl. The Niki name is being kept alive at the Austrian subsidiary of Airberlin while assuming the brand colors of the parent.ย Niki-The Spirit of Niki (flyniki.com) Airbus A320-214 OE-LEX (msn 2867) arrives at Zurich.

 

Airberlin:ย AG Slide Show

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The fly is dead, Niki starts repainting its fleet in Airberlin’s colors

Niki (flyniki.com) (Vienna), as planned, has started repainting its fleet in the 2008 livery of parent Airberlin (Berlin). The distinctive large fly logo (as in flyniki) is being retired. The first to be repainted is the pictured Airbus A320-214 OE-LEU (msn 2902) which still retains the Niki oval logo with an added “The Spirit of Niki” inscription.

Copyright Photo: Javier Rodriguez. OE-LEU is pictured today at the Airberlin hub of Palma de Mallorca with the new look.

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Niki (compare with the old livery):ย 

Airberlin to drop Las Vegas, San Francisco and Vancouver while increasing service to American Airlines hubs

Airberlin (Berlin) is realigning its route map to increase its growing relationship with American Airlines (Dallas/Fort Worth) while dropping non-AA hub destinations like Las Vegas, San Francisco and Vancouver. The German carrier is also increasing its already large presence at Palma de Mallorca in Spain. The airline issued the following statement:

Airberlin has strategically revised its route network for next summer. The timetable modifications have been designed to increase efficiency and mainly refer to the intercontinental routes to the USA as well as the airline’s hubs in Palma de Mallorca and Vienna. The important consideration was not to reduce but to transfer capacities, thereby enhancing the airline’s profile in strategic core markets. In future Airberlin will also be focusing even more on the synergies emerging from its association with its strategic partner Etihad Airways (Abu Dhabi) and theย oneworldยฎย carriers, to derive even greater benefit from the potential stemming from the existing alliances and partnership.

The United States are a strategic growth market for airberlin. This will continue to be the case in the future. By restructuring its network in North America, Airberlin has set the course for further growth in this market from summer 2013 onwards. The new nonstop service between Berlin and the American Airlines hub of Chicago (O’Hare) from March 2013 underpins the strategy of the second largest German airline as regards developing the existing synergies from that association.

Against this background, Airberlin will also be increasing its nonstop services to New York (JFK), Los Angeles and Miami from May 2013 onwards, while at the same time cancelling its seasonal nonstop flights from Dรผsseldorf to Las Vegas, San Francisco and Vancouver.

The restructuring of the North American network is therefore aimed at selectively weeding out low-frequency routes while simultaneously strengthening the strategically important, high-turnover routes and making the best use of a strong network of partners. Consequently both San Francisco and Las Vegas will continue to be available for booking as codeshare flights with American Airlines, since this airline operates a far more frequent service to these destinations than Airberlin โ€“ and throughout the year.

The expansion and optimization of services from Berlin and Dรผsseldorf to the American Airlines hubs of New York (JFK), Los Angeles, Miami and Chicago (O’Hare) is an important element in Airberlin’s network strategy for summer 2013. Consequently Airberlin will be increasing the number of nonstop flights between Dรผsseldorf and New York (JFK) from seven to ten flights per week, thereby ensuring greater timetable consistency with the same arrival and departure times throughout the year.

The number of flights from Dรผsseldorf to Miami is also being increased: from May 2013 a daily service will replace the previous five flights a week to this major US destination. Another new feature at Airberlin’s Dรผsseldorf hub is that the number of nonstop flights to Los Angeles will be increased from three to four per week. The flights are scheduled for Tuesdays, Thursdays, Saturdays and Sundays. Since the service from Berlin to Los Angeles will still continue in summer 2013 with three flights a week โ€“ on Mondays, Wednesdays and Fridays โ€“ Airberlin passengers will be offered a daily flight from Germany to West Coast USA from May 2013 onwards.

The times of the flights between Berlin and Los Angeles, a service that Airberlin has been offering since May 11, 2012, have also been optimized for better connections to and from destinations in Airberlin’s growth markets of Scandinavia and Russia. The service between Berlin and Miami is also being increased from three to five flights a week.

With 7.8 million passengers a year, the Airberlin group has been the carrier with the highest passenger volume at Majorca’s Son Sant Joan airport for nine consecutive years. With the start of its summer timetable, Airberlin will be transferring capacities to achieve a 12 percent increase in its services from Germany, Austria and Switzerland to Majorca, thereby further extending its market leadership on the Balearic Island. This means that in summer 2013 alone, Airberlin will be operating 402 flights a week to this Mediterranean destination. The move represents a 14 per cent increase on the previous summer (summer 2012: 352 nonstop flights a week from Germany). The summer will also see new additional flights to Palma de Mallorca from Berlin, Dรผsseldorf, Frankfurt, Hamburg and Munich.

Along with transferring its capacities, airberlin will be reducing the total number of destina-tions on the Spanish mainland available via a connecting flight from Majorca from 16 to 13. From summer 2013 passengers will therefore no longer be able to fly airberlin to Barcelona, Madrid and Santiago de Compostela via Majorca. Instead, airberlin plans to offer the route from Majorca to Madrid in cooperation with itsย oneworld partners starting in summer 2013. A new interline agreement with Vueling and Air Europa, which is also to come into effect in summer 2013, will allow passengers to carry on booking a connecting flight from Majorca to Barcelona via the airberlin website. Furthermore, airberlin will continue to operate its non-stop services from Berlin, Dรผsseldorf and Vienna to Barcelona. Both Barcelona and Madrid can also be reached from several German airports via non-stop flights operated by our codeshare partner Iberia.

While remaining at a total of 23 planes, the Niki (Vienna) fleet will be standardized to operate only Airbus aircraft. This total concentration on Airbus will increase the number of seats available on existing routes. The route network from Vienna will be expanded on the one hand by extending the range of services to new tourist destinations in Greece, such as Kalamata, Karpathos, Kavala, Lesbos and Volos, and on the other hand by increasing the frequency of flights to existing destinations in Egypt, Spain or Turkey.

In addition Airberlin is promoting its Eastern European services from its hub in the German capital. As a result, the services from Vienna to Sofia, Bucharest and Belgrade will no longer be offered as nonstop flights from Vienna as of summer 2013, but increasingly transferred to Berlin.

In summer 2013 passengers will have a choice of nine destinations in Eastern Europe (Warsaw, Krakow, Gdansk, Moscow, Saint Petersburg, Kaliningrad, Budapest, Sofia, Bucharest) from Berlin. The airline will also be offering nonstop flights to Riga, the Latvian capital, in conjunction with its codeshare partner airBaltic (Riga).

On the financial side, the company issued this statement for its third quarter:

Airberlin, Germany’s second-largest airline company, significantly improved its net income for the traditionally strong third quarter, in comparison with the previous year. At the same time, it was able to offset strongly increasing external cost through the successful efficiency-improvement program “Shape & Size”, which will lead to an improvement of EUR 230 million in operations this year.

In the third quarter, airberlin was able to increase its net income to EUR 66.6 million (2011: EUR 30.2 million), an increase of more than 120 percent over the corresponding quarter of the previous year. The operating result improved by 4.5 percent to EUR 101.2 million (EUR 96.8 million). Revenue increased by 1.4 percent over the previous year, to EUR 1,395.1 million (EUR 1,375.5 million), despite a targeted capacity reduction of 5.4 percent. Capacity utilization increased slightly by 0.4 percentage points to 84.54 percent (84.14 percent). Yield (revenue per passenger) improved by 3.1 percent to EUR 115.84 (EUR 112.39).ย  EBITDAR (Earnings before interest, taxes, depreciation, amortization and leasing expenses) increased by 3.8 percent to EUR 279.5 million (EUR 269.3 million). Total equity at the end of the quarter amounted to EUR 186.3 million, which corresponds to an equity ratio of eight percent.

Airberlin recorded a continuing reduction of direct operating costs โ€“ excluding fuel costs โ€“ as a result of the “Shape & Size” program, which yielded a contribution of EUR 70 million in the third quarter. Over this period, fuel costs increased by EUR 35 million.

Top Copyright Photo: Javier Rodriguez. Airbus A330-223 D-ABXB (msn 322), deployed on long-range and heavy routes, climbs away from the Palma de Mallorca base.

Airberlin:ย 

Niki:ย 

Bottom Copyright Photo: Eurospot. The seven Embraer ERJ 190s will now be phased out at Niki. ERJ 190-100LR OE-IHA (msn 19000285) completes its final approach into Palma de Mallorca.

Airberlin and Niki join Oneworld today

Airberlin (Berlin) today (March 20) officially joinedย oneworldยฎ, adding the second largest airline in Germany and the sixth largest in Europe to the airline alliance.

Niki (Vienna), the Austrian member of the airberlin group, joinedย oneworld as an affiliate member.

Theย joining ceremony at Berlin was the first airline media event held at the new Berlin Brandenburg Airport, which will be Airberlinโ€™s new home base and Europeโ€™s newest hub, when it opens on June 3, 2012.

Those attending were also the first to see an aircraft in the front of the new airport terminal โ€“ with the first Airberlin aircraft adorned with theย oneworld alliance livery, an Airbus A330-200, and one of the airlineโ€™s Boeing 737-800 (see below) making a special visit.

Members of the alliance include Airberlin, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines-JAL, LAN Airlines, QANTAS Airways, Royalย Jordanian and S7 Airlines, and around 20 affiliates including Niki, American Eagle, Dragonair, LAN Argentina, LAN Ecuador and LAN Peru. Malaysia Airlines is on track to join later in 2012, with Indiaโ€™s Kingfisher Airlines also a member elect. Mรกlev Hungarian Airlines and Mexicana are inactive members of the alliance.

Top Copyright Photo: Stefan Sjogren.

Middle Copyright Photo: Javier Rodriguez.

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Bottom Copyright Photo: K.C. Sim.

Niki to fly Vienna-Florence in competition with Austrian Airlines

Niki (flyniki.com) (Vienna) will start a new route linking Vienna with Florence (Italy) on May 14. The new route will be operated six days a week. The airline currently serves Rome and Milan in Italy.

Copyright Photo: Yannick Delamarre.

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Niki is planning Vienna-Sarajevo service

Niki (flyniki.com) is planning Vienna-Sarajevo service this summer in competition with Austrian Airlines according to Balkans.com.

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Copyright Photo: OSDU.

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Airberlin to join the Oneworld alliance on March 20

Airberlin (airberlin.com) (Berlin) will join the Oneworld alliance on March 20, 2012, adding Europeโ€™s sixth largest carrier to the global airline alliance. Niki (Vienna), also a member of the Airberlin Group, will join Oneworld at the same time as an affiliate member.

Copyright Photo: Paul Bannwarth.

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Niki Lauda sells his remaining shares to Airberlin, will join the Airberlin board

Niki’s (Vienna) founder and majority shareholder announced on November 8, 2011 he was selling all his remaining shares to Airberlin.

Lauda previously owned 50.1 percent of his second airline.

The Niki name will remain and Niki Lauda will join the Airberlin board of directors.

Airberlin issued the following statement:

“The founder of Austrian airline Niki Luftfahrt GmbH, Andreas Nikolaus (Niki) Lauda, has been appointed to the Board of Air Berlin PLC as Non-Executive Director.

Since July 2010 Air Berlin PLC has held a 49.9 stake in Niki Luftfahrt GmbH. Airberlin, the Lauda Private Trust and Niki Lauda have agreed that the Lauda Private Trust will be withdrawing from Niki Luftfahrt GmbH. The withdrawal of the Lauda Private Trust will be taking place shortly in the course of restructuring measures in accordance with company law. As a result the Lauda Private Trust will be repaying the loan it had received from Airberlin by transferring its 50.1 percent stake in Niki Luftfahrt GmbH. Austrian control and majority ownership of Niki Luftfahrt GmbH will in future be ensured by a new private trust that is exclusively Austrian and that will hold a majority stake in Niki Luftfahrt GmbH. The transfer of the 50.1 percent stake will not involve any cash payments.”

Copyright Photo: Tony Storck. Please click on the photo for the full story.

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