Tag Archives: PMI

Monarch Airlines secures an AOC from EASA

Monarch Airlines (London-Luton) has secured an European Air Operators Certificate (AOC) from EASA. The company issued this statement:

Monarch, the leading scheduled airline to leisure destinations is the first major UK airline to have completed all requirements for the issue of an EASA Air Operators Certificate (AOC). The main feature of the new EASA regulations is the introduction of a mandatory Safety Management System (SMS) by which each operator must demonstrate a robust safety culture and a risk based approach to all aspects of aircraft operations. Monarch Airlines’ new AOC will become effective from October 28, 2014; allowing the carrier to continue to operate as a transport category airline under the new regulations.

The civil aviation regulation is to be harmonized at European level by October 28, 2014, meaning all airlines must conform to EASA regulations by this point. The airlines transition involved the production of compliant Operations Manuals and the introduction of new Safety Management and Compliance Monitoring Manuals to meet the requirements of the new Implementing Rules (IRs). Monarch Airlines’ prompt submission of the relevant documents to the UK CAA for approval was eight weeks ahead of the deadline.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Monarch will phase out is last three Boeing 757-200s at the end of the summer 2014 season ending a long era with the twin jet. However the company will remain a Boeing operator with its upcoming order for 30 Boeing 737 MAX 8s. Boeing 757-2T7 G-DAJB (msn 23770) taxies past the camera at Palma de Mallorca (PMI).

Monarch Airlines:

Norwegian continues to build up its presence at London’s Gatwick Airport, reports a 2Q net profit of $20.5 million

Norwegian Air Shuttle’s (Norwegian.com) (Oslo) route network from London Gatwick continues to expand. Norwegian is adding four new destinations this winter; Madeira and La Palma for the sun-seekers and Grenoble and Salzburg for the ski enthusiasts.

Norwegian is also increasing the number of weekly departures on its routes from London Gatwick to Lanzarote, Rome and Larnaca.

From October 28 and November 1, respectively, Norwegian offers sun-seekers two weekly flights from London Gatwick to the Portuguese island of Madeira and one weekly flight to La Palma in the Canary Islands. Those more keen on white and powdery conditions in the Alps this winter, can from December 13 fly nonstop to Grenoble and Salzburg once a week.

Today, Norwegian is a major player at London Gatwick airport. The airline established a crew base at the airport in 2013 and now offers 41 routes from London Gatwick. Norwegian has eight Boeing 737-800 aircraft based at London Gatwick today as well as around 90 pilots and 200 cabin crew members.

On the financial side, Norwegian (NAS) reported a second quarter 2014 net profit of 128 million NOK ($20.5 million). According to the carrier, “The second quarter is characterized by strong growth and a record high load factor, and influenced by significant, one-off costs, a weak Norwegian currency and high oil prices. The strike from labor union Parat earlier this year alone cost Norwegian over 100 million NOK in lost revenue.

The second quarter figures also reflect Norwegian’s growth strategy and the company’s goal to fill all its new seats. Despite significant costs related to the start-up of the long-haul operation and higher costs due to the weak Norwegian currency, the unit cost (CASK) is down, strengthening Norwegian’s competitive advantage further. Over the past year, Norwegian has introduced seven Dreamliner aircraft to its long-haul operation.

The total revenue in the second quarter was over 5 BNOK, up 26 percent from the same quarter last year. The pre-tax result (EBT) was -137 MNOK. 6.4 million passengers chose to travel with Norwegian during the second quarter, which is an increase of 16 percent and almost 900 000 passengers more than the same period last year. The company’s traffic growth (RPK) was considerably higher at 46 percent, which reflects that each of Norwegian’s passengers on average flies significantly longer than they did a year ago.”

Record high load factor

Norwegian realized a strong production growth (ASK) of 41 percent. The growth is, naturally, stronger in new markets. Despite Norwegian’s strong capacity growth, the company is still filling its seats. The load factor in this quarter was 80 percent, up three percentage points from the same quarter last year, which is record high for a second quarter.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 737-8JP LN-NGT (msn 41125) taxies at Palma de Mallorca (PMI) with Anton K.H. Jakobsen on the tail.

Norwegian:

Current routes from London Gatwick:

Azerbaijan Airlines expands Embraer fleet to six E190s

Embraer has signed a firm order for two additional E190 jets with Azerbaijan Airlines (AZAL) (Baku), the national carrier of Azerbaijan. The aircraft will be deployed on the carrier’s international network from Baku’s Heydar Aliyev International Airport (GYD).

The total value of the contract is $95.4 million at list prices. This order was already included in Embraer’s 2014 second quarter backlog as an “undisclosed” customer. With this order, now AZAL will now operate six E190s.

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. Embraer ERJ 190-100 IGW 4K-AZ64 (msn 19000627) departs from Palma de Mallorca.

Azerbaijan Airlines:

Lufthansa reports on the first year of the “new Germanwings”

Lufthansa (Frankfurt) has issued this information report on the first anniversary of the revamped Germanwings (2nd) (Cologne/Bonn):

For exactly one year now, the “new Germanwings” has enhanced the range of flights on offer for customers throughout Europe. On July 1, 2013, it launched an entirely new product and brand concept, and over the space of twelve months it has developed to become the third largest airline in Germany. Since July 2013, Germanwings has carried more than 16 million passengers. The number of routes on offer has also risen from 182 to 296 today. Germanwings now serves 130 destinations, most of which are in Europe.

Lufthansa amalgamated its domestic German and European flights that were not operated through its Frankfurt and Munich hubs in the “new Germanwings”. The handover of flight routes is now well advanced. In Cologne, Stuttgart and Hanover it has been completed, while in Hamburg and Berlin a few routes are still being transferred. Lufthansa began transferring routes to Germanwings in Düsseldorf in March 2014. Once the hand-over has been completed, Düsseldorf will be the largest Germanwings base.

Germanwings passengers rate the airline highly positively. In all the passenger surveys, they attest to the airline’s high-quality service, and the vast majority is extremely satisfied with the new offer. Customers thus reinforce Germanwings’ claim to be a low-cost-carrier offering flights at low prices and a high-quality service.

The expansion of Germanwings has also been successful from a commercial point of view: in comparison to last year, when the airline contributed €93 million to the Lufthansa Group’s earnings improvement year-on-year, the contribution is expected to increase again this year. For 2015, for the first time in many years, the Group expects to achieve a balanced result on its non-hub routes in Europe.

The airline, which is based at Cologne-Bonn Airport, has also significantly expanded its fleet. While just one year ago 38 jets bore the Germanwings livery, 71 aircraft can now be seen sporting the logo of the youngest airline in the Lufthansa Group. A further ten aircraft will join the fleet by the end of the year. The workforce has also increased from 1,600 to just over 2,000, the bulk of new staff recruitment being in flight operations. The number of flight personnel has thus risen from 1,174 to 1,614. Germanwings crews currently complete a total of 3,312 flights each week, compared with 1,891 a mere twelve months ago. Since its launch a year ago, Germanwings with its highly motivated team has already completed around 171,000 safe take-offs and landings. Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG: “We have been on the offensive with the ‘new Germanwings’ in terms of point-to-point flights on European and German domestic routes that are not operated through our major hubs. We have combined our many years of experience in the low-cost segment and our high quality standards to develop a convincing concept that has been extremely well received by customers. With the ‘new Germanwings’, we have taken an important step and are now closer to achieving our goal of flying profitably beyond the major hubs within the short-haul traffic segment.”

Thomas Winkelmann, spokesman for the Germanwings Executive Board: “Germanwings is without a doubt one of the most creative airlines in Europe. Twelve months ago we entered new territory with Germanwings’ new product and brand promise. Since then, we have been combining the various requirements of different customer groups in one airline. Today we know that this bold decision was the right one: everyone feels at home on board of Germanwings. This is undoubtedly because we refuse to compromise on two points: safety and the friendly and expert way in which we deal with our customers.”

A unique feature of Germanwings is ‘à la carte flying’. When booking their tickets, passengers have a choice of three products in different price segments with different comfort add-ons: ‘BEST’ represents the high-end offer that primarily covers the needs of business passengers but that also appeals to certain leisure travelers. The ‘SMART’ fare product includes certain extra services, and ‘BASIC’ is a no-frills, low-cost fare.

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. The Germanwings fleet has expanded from 38 to 71 Airbus aircraft in the past year. Formerly with Lufthansa, Airbus A320-211 D-AIQS (msn 401) now flies for lower-cost Germanwings.

Lufthansa:

Germanwings (2nd):

Livingston to shut down on July 14

Livingston Compagnia Aerea (2nd) (New Livingston) (Milan-Malpensa) will cease operations on July 14 after the ENAC announced the revocation of its Air Operators Certificate (AOC). The airline is guaranteeing its flights until then and is also appealing the decision.

On June 25 the airline issued this statement:

New Livingston has filed a petition with the Court of Busto Arsizio for the admission to the settlement with creditors procedure pursuant to article 161, paragraph 6 of the Italian Bankruptcy Law (so called “concordato preventivo”).

New Livingston resolved to apply for the above mentioned instrument, in order to overcome a temporary financial crisis ascribable to, inter alia, the bankruptcy of Aeradria S.p.A., significant delays in collecting certain credits and the recent revocation of the PSO route Alghero – Roma Fiumicino and vice versa (in connection with such measure, a claim against Regione Autonoma della Sardegna is still in progress). The above, in compliance with the so-called “par condicio creditorum”.

New Livingston has already provided to ENAC the documentation needed in order to immediately obtain the revocation of the suspension measure of its carries license starting from 00:01 of July 14, 2014 or the issuance of a provisional carrier license, on the basis of article 9, paragraph 1, of the Regulation (EC) No. 1008/2008 and paragraph 4.6 of the Circular ENAC EAL-16 of 27 February 2008.

New Livingston will continue its full operation of scheduled connections guaranteeing its high standards of quality and safety.

The second version of Livingston started operations on March 31, 2012.

Previously on December 15, 2011 Riccardo Toto bought the assets of defunct Livingston Energy Flight (1st) from the company in receivership. The name “Livingston” was reborn. The airline is privately held.

The company currently operates three Airbus A320s and the main route is from Rome to Alghero, Sardinia.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A320-232 EI-ERH (msn 2157) holds short of the runway at Palma de Mallorca (PMI).

Livingston (2nd):

Monarch to launch two ski routes from Birmingham this winter

Monarch Airlines (London-Luton) has announced two new routes from Birmingham Airport – to Salzburg and Turin – as part of its winter ski program for 2014/15. Flights will commence on December 13, 2014.

Monarch flies from Birmingham (BHX) to Salzburg (SZG) and Turin (TRN).

In addition, Monarch Airlines will offer twice-weekly London Gatwick – Agadir service starting on October 28.

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. Airbus A321-231 G-ZBAI (msn 2553) climbs away from Palma de Mallorca.

Monarch:

Lufthansa lowers its profit forecast for 2014

Lufthansa (Lufthansa Group) (Frankfurt) has adjusted its earnings forecast. The company issue this revised forecast:

Deutsche Lufthansa AG is adjusting its earnings forecast as a result of the revenue development in the passenger and cargo businesses, which is below expectations: the company’s Executive Board is now projecting an operating profit for the current financial year of approximately EUR 1 billion ($1.35 billion)(approximately EUR 1.3 billion after adjustment for one-off effects). Previously the company had been forecasting an operating profit for 2014 of EUR 1.3 to 1.5 billion (EUR 1.7 to 1.9 billion after adjustment for one-off effects).

“The revenue risks mentioned when we presented the quarterly figures in early May have unfortunately materialized”, said Simone Menne, Chief Officer Finances and Aviation Services at Deutsche Lufthansa AG. The Group had already warned against increasing risks to the earnings forecast in the first quarterly reports. Above all it is the Group’s American and European business that has suffered from increasing excess capacity, which leads to falling prices on these routes. “We will therefore noticeably reduce our capacities during the winter timetable period”, emphasized Menne. Strong capacity growth by state-owned Gulf carriers was a major concern, she added. They are advancing ever further into the European market, also by means of investments in European airlines, she explained

The strike by the “Vereinigung Cockpit” pilots’ union in early April, had a negative results impact of EUR 60 million ($81.2 million). Only recently has booking activity returned to normal. Additionally, impairments on receivables denominated in Venezuelan Bolivar have burdened the result of the current year by EUR 60 million so far.

Given these economic developments the Executive Board no longer believes that the earnings target for 2015 of EUR 2.65 billion ($3.58 billion) set as part of the Score program can be achieved. The company nonetheless intends to substantially increase its operating profit compared with the current year. The basis for this will be laid with the noticeable reduction of capacities during the winter timetable period. Additionally, in order to boost the competitiveness of the Lufthansa Group, structural measures will be implemented at a higher pace. The details will be presented by Carsten Spohr, Chairman and CEO of the Executive Board in July. The Executive Board sets a new target of approximately EUR 2 billion on an operating profit level for 2015, provided that conditions remain stable. Menne emphasized: “The current development underlines the importance of Score for the group. We are achieving a sustainable reduction of our unit costs and now aim to stabilize the revenue trends, in order to counteract an ever intensifying competitive situation”, said Simone Menne.

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. Airbus A320-214 D-AIUD (msn 6033) is the only A320 painted by Lufthansa in the special “Fanhansa” colors for the 2014 FIFA World Cup Brazil.

Lufthansa:

Hermes Aviation starts operations with a single Boeing 737-400

Hermes Aviation (FlyHermes.com) (Malta) started operations with this single Boeing 737-4K5 registered as 9H-HER (msn 24901). The airliner was delivered on May 26, 2014. The first revenue flight was on June 6, 2014.

Top Copyright Photo: Javier Rodriguez/AirlinersGallery.com. 9H-HER is pictured today (June 8) at Palma de Mallorca subchartered by Mistral Air arriving from Bergamo (Orio al Serio).

Bottom Copyright Photo: Marco Finelli/AirlinersGallery.com. 9H-HER is pictured at Bologna while operating for Mistral Air. The airliner has been operated for about 15 years in Italy with Blue Panorama Airlines as EI-CUA.

Lufthansa to operate seasonal Munich-Gran Canaria flights

Lufthansa (Frankfurt) will launch a new route between its Munich hub and the Canary Island of Gran Canaria on October 26, 2014. An Airbus A321 with 200 seats and two classes will fly to the airport of Las Palmas, the largest city in the Canary Islands.

Lufthansa will fly to Gran Canaria between October 26, 2014 and April 12, 2015 on Sundays at 9.00 a.m.

Gran Canaria has a mild climate in winter, making a beach holiday possible at any time of the year. The island, which is volcanic in origin, is unique because of its extremely diverse landscape and is popular among hikers.

Lufthansa:

Airberlin’s first quarter net loss widens to $287.6 million, will share Boeing 787 fleet with Etihad Airways

Airberlin (airberlin.com) (Berlin) and Etihad Airways (Abu Dhabi) will integrate their Boeing 787 Dreamliner fleet affecting 56 firm aircraft according to a report by Reuters. Airberlin says this will save millions of dollars for both airlines. On the financial side, Air Berlin PLC issued this report for the first quarter:

Air Berlin PLC has realized a group revenue of EUR 761.8 million ($1 billion) in the first quarter of 2014 as compared to EUR 791.9 million ($1.08 billion) in the first quarter of 2013. Due to the shift of Easter business to April, revenue decreased by 3.8 per cent during the first quarter in 2014.

The operating result (EBIT) amounted to EUR -182.8 million (a loss of $176.5 million) in the first quarter of the current year as compared to EUR -188.4 million (-$258.3 million) in the prior year’s quarter.

Compared to the same quarter of the previous year, EBITDAR decreased from EUR -31.5 million to EUR -37.0 million. The financial result amounted to EUR -30.5 million as compared to EUR -25.0 million in the previous year.

Pre-tax earnings in the first quarter of 2014 amounted to EUR -213.4 million after EUR -213.4 million in the same quarter of the previous year. The net result in the first quarter of 2014 amounted to EUR -209.8 million (-$287.6 million) after EUR -196.3 million (-$269.1 million) in the corresponding quarter in 2013. Earnings per share based on an average number of 116,800,508 shares outstanding in the first quarter of 2014 thus amounted to EUR -1.80 compared with EUR -1.68 in the first quarter of 2013 (basic and diluted)

As of March 31, 2014, Air Berlin’s total assets amounted to EUR 2,032.2 million (December 31, 2013: EUR 1,885.5 million), its total equity amounted to EUR -399.1 million (December 31, 2013: EUR -186.1 million) and its net debt amounted to EUR 801.1 million (December 2013: EUR 796.0 million).

The airline commented on its first quarter results:

Airberlin’s operating result for the first quarter of 2014 in a difficult market environment with high pressure on capacity utilization and yield was slightly better than that of the previous year. In particular, the effects of the Turbine turnaround program led to a clear cost reduction. As a result, Airberlin was able to reduce the cost per available seat kilometer (CASK), excluding fuel cost, by 8.2% over the corresponding quarter of the previous year. In this manner, especially aircraft costs and airport infrastructure costs were reduced due to productivity increase and by renegotiating better terms and conditions for leasing contracts. Due to the Easter travel not starting until April, total sales for the first quarter decreased by 3.8% to EUR 761.8 million (previous year: EUR 791.9 million). Revenue per available seat kilometer fell to 6.54 Eurocents (previous year: 7.10 Eurocents). airberlin’s operating loss (EBIT) for the first quarter slightly decreased by 3% to EUR -182.8 million (previous year: EUR -188.4 million).

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. Boeing 737-86J D-ABKK (msn 37753) arrives in Palma de Mallorca (PMI) in the special “35 years – The way to your heart” color scheme.

Airberlin: