China Eastern Airlines (Shanghai) is planning to launch its second route to Canada, this time Toronto (Pearson). According to Airline Route, the new route will be started on June 25 with Airbus A340-600s operating three days a week.
Copyright Photo: Michael B. Ing/AirlinersGallery.com.ย Airbus A340-642 B-6053 (msn 577) in SkyTeam livery rotates at Los Angeles.
China Eastern Airlines:ย 
Alitalia (2nd) (Rome) has flatly turned away Ryanair’s (Dublin) (please see the previous post) offer to feed Alitalia’s long range flights at its Rome Fiumicino hub. Ryanair has announced it will move many of its flights to its new Fiumicino base.
Alitalia issued this terse and short statement:
“Alitalia has its own strategy, an industrial plan, a fleet and its own crews that allow it to have the necessary passenger traffic to feed its international and intercontinental connections leaving from the hub at Fiumicino airport”.
Read the full report from Reuters: CLICK HERE
Copyright Photo: Ken Petersen/AirlinersGallery.com. Alitalia’sย Boeing 767-343 ER EI-CRM (msn 30009) arrives from Rome (Fiumicino) at New York (JFK).
Alitalia (2nd):ย
Alitalia (2nd) (Rome) continues to bleed money. According to this report by Reuters, the flag carrier needs almost $680 million to avoid bankruptcy again. Its main fuel supplier has threatened to stop making fuel deliveries this weekend.
The Italian government, which considers the failing airline a “strategic asset”, has now structured a deal where state owned Poste Italiane through Mistral Airย (Rome) would provide a partial capital float in the form of a capital increase to keep the passenger airline flying.
Alitalia continues to lose money and has not been profitable since 2002. The causes of continued losses has not been fully addressed due to political meddling.
The government now wants “radical change” at the airline and wants the current stockholders to share in the capital increase.
Stockholders Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam), which control 25 percent of the shares, has mainly been mum of the recent government calls for action and has continued to ask for more financial information.
The Italian government would like Air France-KLM to raise their stakes in Alitalia but this is unlikely to happen since Air France is restructuring itself.
Can Alitalia survive? Will any of the Gulf carriers (Etihad Airways?) come to the rescue? Will any of the other SkyTeam partners help? Stay tuned.
Read the full report: CLICK HERE
Top Copyright Photo: Ken Petersen/AirlinersGallery.com. Up-close runway action of Alitalia’s Boeing 767-35H ER EI-DBP (msn 26389) in the SkyTeam colors at New York (JFK).
Alitalia (2nd):ย 
Mistral Air:ย
Bottom Copyright Photo: Andi Hiltl/AirlinersGallery.com. Mistral Air’s Boeing 737-348 EI-BUE (msn 23810) prepares to land at Zurich.
KLM Royal Dutch Airlines (Amsterdam) will extend the Amsterdam-Buenos Aires route to Santiago, Chile starting on February 2, 2014. The airline issued this statement:
From February 2,ย 2014, flights will be operated with a Boeing 777-300 (KL 701 and KL 702), with a stop in between in Buenos Aires three times a week on Tuesday, Thursday and Sunday from Amsterdam and on Monday, Wednesday and Friday from Santiago.
To suit its clientsโ needs, KLM offers 3 classes on board:
KLM weekly schedules as per February 2, 2014 are:
Winter schedule:
| Departure | Time | Arrival | Time |
| Amsterdam | 20:55 | Buenos Aires | 07:05 |
| Buenos Aires | 09:10 | Santiago | 11:20 |
| Santiago | 13:00 | Buenos Aires | 14:55 |
| Buenos Aires | 16:55 | Amsterdam | 10:15 |
Summer schedule:
| Departure | Time | Arrival | Time |
| Amsterdam | 21:00 | Buenos Aires | 06:10 |
| Buenos Aires | 08:10 | Santiago | 09:25 |
| Santiago | 11:05 | Buenos Aires | 14:00 |
| Buenos Aires | 16:00 | Amsterdam | 10:20 |
Copyright Photo: Karl Cornil/AirlinersGallery.com. Boeing 777-306 ER PH-BVD (msn 35979) painted in the SkyTeam alliance livery arrives back at the AMS hub.
KLM:ย
Delta Air Lines (Atlanta) is one of the U.S. airlines leading the stampede to find new revenue sources to “enhance the travel experience”.
According to the airline, Delta will begin offering a new travel option for SkyMiles customers which provides access to some of the airline’s most popular enhanced travel extras such as checked bags, priority boarding and seat selection for $199. The new package, called Smart Travel Pack, introduces a practical and affordable way for customers to add a suite of extra services and additional comfort for their upcoming business or personal travel.
An eligible SkyMiles member who purchases the Smart Travel Pack will receive:
Package features are valid for the SkyMiles member who purchases the Smart Travel Pack during the promotion period and up to eight friends or family members traveling with them with the exception of bonus miles which are only awarded to the primary purchaser’s SkyMiles account.
Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Former TWA/American Airlines Boeing 757-231 N709TW (msn 28479) in the SkyTeam alliance color scheme, taxies at Shannon.
Delta Air Lines:ย
Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) issued its financial report for the first six months of 2013 including subsidiary Transavia Airlines (Amsterdam). The group reported an operating profit of $105 for the first half turning around a comparable loss in the first six months of 2012. The group expects to make an operating profit for the entire ย year.
Read the full report: CLICK HERE
Read the analysis by Bloomberg: CLICK HERE
Top Copyright Photo: Brian McDonough/AirlinersGallery.com.ย Airbus A380-861 F-HPJE (msn 052) climbs away from Washington (Dulles).
Air France:ย 
KLM:ย
Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com.ย Boeing 777-306 ER PH-BVD (msn 35979) in the SkyTeam motif taxies to the runway at the Amsterdam hub.
Aeroflot Russian Airlines (Moscow) according to Reuters, citing a report in Kommersant, is considering leaving the SkyTeam alliance in the future. According to the report, the flag carrier is not happy with its development of routes in the United States due to the “high fares” charged by Delta Air Lines.
Read the full report: CLICK HERE
Copyright Photo: OSDU/AirlinersGallery.com.ย Airbus A330-343X VQ-BCQ (msn 1058) in the SkyTeam motif arrives at the Moscow (Sheremetyevo) hub.
Aeroflot:ย
Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) on May 29 launched its first flight with WiFi services. KLM issued this statement:
On May 29 Air France and KLM Royal Dutch Airlines will operate their first inflight connectivity flights with Wi-Fi on board. The new service will allow customers to remain connected with the world by being able to send text messages and e-mails and surf the Internet during their flight. On our specially designed inflight website we also offer a broad range of free and up to date services including live television news and sports channels, relevant airline and destination information.
Online Access
In partnership with Panasonic Avionics, Air France and KLM will conduct a trial phase throughout the rest of 2013 on two Boeing 777-300s. During that time, customers can connect to the internet using their Wi-Fi enabled smartphones, laptops or tablets at a fixed rate and use their mobile phones for text messages or email, no matter what travel class they are in. The two Wi-Fi equipped aircraft will operate on several long-haul destinations during the trial.
Fares
During the pilot phase we will offer hourly and full-flight fees: EURย 10.95 per hour or EURย 19.95 for the full flight, applicable for all classes. These fees are in line with industry average. Travellers can pay for their internet access by credit card. Mobile phone usage (for text and data) will be billed to the phone users according to their own roaming agreements. Access to the inflight website will be free of charge.
Wireless service โ whether the on-board portal or satellite internet โ will commence once the flight has reached 20,000 feet, shortly after take-off.
Copyright Photo: Nick Dean/AirlinersGallery.com. KLM’sย Boeing 777-306 ER PH-BVD (msn 35979) in the SkyTeam livery powerfully climbs away from Paine Field near Everett.
Air France:ย 
KLM Royal Dutch Airlines:ย
Video:
AeroMexico (Mexico City) hasย announced its new route fromย Las Vegasย toย Puerto Penasco and Hermosillo, Mexico. The new route will start on June 20.
AeroMexico Connect will operate two weekly flights to these Mexican touristic destinations with 50-seat Embraer ERJ 145 aircraft with the following schedule:
Las Vegas โ Puerto Penasco*
| Flight Number | Departure | Arrival | Frequencies |
| AM 2675 | 03:28 pm | 05:34 pm | Thursday & Sunday |
Puerto Penasco โ Hermosillo*
| Flight Number | Departure | Arrival | Frequencies |
| AM 2675 | 06:09 pm | 07:05 pm | Thursday & Sunday |
Hermosillo โ Puerto Penasco*
| Flight Number | Departure | Arrival | Frequencies |
| AM 2674 | 10:47 am | 11:49 am | Thursday & Sunday |
Puerto Penasco โ Las Vegas*
| Flight Number | Departure | Arrival | Frequencies |
| AM 2674 | 12:34 pm | 02:28 pm | Thursday & Sunday |
*Schedules are in local time of each country and subject to change without notice.
Puerto Penasco is the newest tourist destination in the country’s Northwest that offers visitors an impressive hotel infrastructure of the condo-hotel type and which has begun the construction of a “Home Port” to open the Sea of Cortez to cruise liners, in addition to beautiful beaches for relaxing and admiring the lovely sunsets, two golf courses, as well as many water sports options such as: sailing, sport fishing and jet skiing. Complementing this attractive destination’s offerings is the impressive Pinacate Biosphere Reserve and its more than 400 craters surrounded by the Grand Altar Desert.
Hermosillo, capital of the state of Sonora, has positioned itself as one of the most attractive cities in the country because of the astonishing variety of activities that can be enjoyed hereย – snorkeling, hiking, bird watching, mountain cycling, in addition to hunting tourism – and its economic, political and social important development. The city is located three hours from the border, 100 kilometers from the Sea of Cortez, and with fast access to all other regions of the entity and other states.
With this new route, AeroMexico adds to its network the 47thย destination in Mexico.
Copyright Photo: James Helbock/AirlinersGallery.com.ย AeroMexico Connect’s Embraer ERJ 145LR (EMB-145LR) XA-CLI (msn 14500803) in the SkyTeam livery arrives at Los Angeles International Airport.
AeroMexico:ย
AeroMexico Connect:ย
Video: AeroMexico Connect ERJ 145 Video:
Delta Air Lines (Atlanta) today announced a balanced capital deployment program aimed at creating up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years.
As part of this program, Delta’s Board of Directors has initiated a quarterly dividend and declared a $0.06 per share dividend for shareholders of record as of Aug. 9, 2013. This dividend will be paid on Sept. 10, 2013. In addition, the Board has authorized a $500 million share repurchase program, to be completed no later than June 30, 2016. Together, these two programs are designed to return more than $1 billion of capital to shareholders over the next three years.
“Delta’s financial performance and balance sheet have strengthened considerably over the past five years and the Board believes the company is now in a position to begin returning cash to our shareholders,” said Daniel Carp, chairman of Delta’s Board of Directors. “The Board’s shareholder return program makes a long-term commitment to our shareholders with the implementation of an ongoing quarterly dividend, while also providing flexibility to return additional cash to shareholders through the share repurchase program.”
Comprehensive Financial Plan
Since 2009, Delta has made significant investments in its people, product and service, while improving its earnings and generating $4 billion of free cash flow. That free cash flow has been dedicated to strengthening the company’s balance sheet. As a result, Delta’s adjusted net debt has fallen from $17 billion at the end of 2009 to just under $12 billion at the end of 2012. The company expects to achieve its $10 billion adjusted net debt target by the end of 2013.
“Delta’s strategy has resulted in a solid financial foundation for our company, tremendous improvements in our fleet, facilities, products and technology, as well as top-notch operational reliability and service to our customers,” said Richard Anderson, Delta’s chief executive officer. “The capital deployment plan unveiled today furthers our commitment to becoming the airline of choice for our employees, customers and shareholders.”
In an investor presentation this morning, Delta outlined a comprehensive, five-year financial plan. The plan focuses on free cash flow generation through a combination of expected earnings improvements and a disciplined approach to capital investment. Over the next five years, the company plans to reinvest $2.0 – $2.5 billion annually, or approximately 50 percent of its operating cash flow, into improving the company’s fleet, facilities, products and technology. The resulting free cash flow will be used to return cash to shareholders, further reduce the company’s debt, and opportunistically address longer-term pension funding needs, driving up to $5 billion of value to Delta’s shareholders.
As part of this plan, Delta expects to achieve and maintain an adjusted net debt level of $7 billion, a $5 billion reduction over 2012. By meeting the $7 billion target, Delta will have reduced its adjusted net debt by $10 billion since 2009, significantly decreasing the company’s balance sheet risk and generating more than 50 percent savings in interest expense.
The company also plans to make up to $1 billion of incremental contributions to the company’s defined benefit pension plans over the next five years. These contributions would be in addition to the $650 – $700 million annual required minimum contribution.
Repurchases under Delta’s program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, or accelerated share repurchase transactions in compliance with applicable regulatory guidelines, including Securities and Exchange Commission Rule 10b-18. Purchases will be made subject to market and economic conditions, applicable legal requirements, and other relevant factors. Delta had approximately 855 million shares of common stock outstanding as of March 31, 2013.
Copyright Photo: Michael B. Ing.ย Boeing 737-832 WL N3755D (msn 29627) in the SkyTeam motif arrives at Los Angeles.
Delta Air Lines:ย
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