Tag Archives: Tenerife

Jet2 orders three additional Boeing 737-800s

Jet2-Jet2.com Boeing 737-86Q WL G-GDFY (msn 30278) (Great flight times) TFS (Paul Bannwarth). Image: 927692.

Jet2-Jet2.com (Leeds/Bradford) has finalized an order for three Next Generation 737-800s, valued at $288 million at current list prices.

Jet2.com previously ordered 27 Next Generation 737-800s in September 2015 and operates an all-Boeing fleet of more than 60 airplanes.

Jet2.com is a subsidiary of Dart Group PLC, a UK Aim listed Leisure Travel and Distribution & Logistics Group. The Company commenced commercial aircraft operations in 1983 and passenger flights to sun destinations from Leeds-Bradford Airport in 2003.

Jet2.com now flies over three million customers each year through a combination of package holidays and flight only services to 55 destinations across 364 holiday resorts from seven Northern departure bases.

The newer Boeing 737s will help the carrier retire its Boeing 737-300 Classic fleet.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com.  Boeing 737-86Q WL G-GDFY (msn 30278) with “Great flight times” sub-titles approaches the runway at the resort island of Tenerife at Tenerife Sur (South) Airport.

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Small Planet Airlines to upgrade its Airbus A320 fleet after record profits

Small Planet Airlines (Vilnius) is reporting record profits. The carrier will plow the profits into upgrading its Airbus A320 fleet. The company issued this statement:

During the first half of the year the charter flight carrier Small Planet Airlines earned EUR 64.3 million and improved its financial performance by a whopping 25.3%. Meanwhile, the company’s profits doubled from EUR 2 to EUR 4 million. First and foremost, such positive results should delight the carrier’s passengers, as Small Planet Airlines has announced its plans to invest added profits into increasing its passengers’ comfort on-board. As soon as next year the carrier intends to spend EUR 6 million on renewing all of its aircraft, marking the largest investment into the fleet renewal in the entire company’s history.

Small Planet logo (LRW)

Based on the new concept of the salon, Small Planet Airlines plans to renew all of its Airbus A320 aircraft until the launch of the new summer holiday season next year. Amongst the anticipated modifications – brand new Recaro seats, special LED lighting and an internal wireless network which will enable all airline passengers to use their mobile devices for extra entertainment on-board. The company is also set to introduce its new Economy Premium product line for those seeking added comfort. According to the CEO of Small Planet Airlines, Vytautas Kaikaris, the newly introduced improvements and aircraft modifications will surely bring extra comfort to the carrier’s passengers, help the company stand out from its competition and positively affect the future development of the airline.

“2015 is the year of massive growth for our company. During the first half [of the year] alone we have supplemented our fleet by 7 aircraft, increased the number of flights by 30% and welcomed 300 new employees to our highly qualified and experienced team,” comments V. Kaikaris. “And what is truly praiseworthy is the fact that our employees have managed to handle such an impressive growth and delivered an increased profit. In the first half of the year our profit margin grew from 3.9 to 6.2%,” added the executive.

According to V. Kaikaris, the upcoming investment will go directly towards improving the passenger comfort. In fact, the company has already signed a contract with the German manufacturer Recaro and placed an order for as many as 3000 brand new seats. “A multiple award winner for its seat quality and design, Recaro is undoubtedly in the top 3 of the best aircraft seat manufacturers in the world. Therefore, we rest assured that the ergonomic properties of our new leather seats will be highly appreciated by our passengers. An added benefit is the increased private space, courtesy of the significantly slimmer seatbacks. These seats are extremely durable and almost twice as light as the existing ones – a lesser weight of seats translates into a lighter aircraft which, in turn, translates into reduced fuel consumption and CO2 emissions,” shares V.Kaikaris.

Another noteworthy improvement to be introduced on Small Planet Airlines aircraft is the new LED lighting, which can be specifically adapted for distinct phases of a flight. Uniform light will produce no blinding effect, so passengers on-board should not experience eye tiredness for significantly longer periods of time.

Those looking for even more comfort will soon be able to opt for the Economy Premium product line. “We have observed that more and more passengers wish to receive that little bit more added attention and convenience. An increasing number of air travellers decide to pay a little bit more for extra legroom, smoother transition through the checkpoints or a pre-ordered hot lunch on-board. We are here to satisfy those demands and create that feeling of a holiday even prior to reaching its destination,” says the CEO.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A320-232 LY-SPB (msn 2987) lands at Tenerife Sur.

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Ryanair agrees to sell its 29.8% stake in Aer Lingus to IAG

Ryanair (Dublin) has agreed to sell its 29.8 percent share in Aer Lingus (Dublin) to the International Airlines Group-IAG (British Airways, Iberia and Vueling Airlines) (London). The airline issued this statement:

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The Board of Ryanair Holdings PLC today (July 10) confirmed that it has voted unanimously to accept the IAG offer for Ryanair’s 29.8% shareholding in Aer Lingus Group plc. Ryanair’s stake in Aer Lingus has been available for sale since May 2012 and the Board believes that the current IAG offer maximizes Ryanair shareholder value.

In line with this decision, Ryanair will now vote in favor of the motion at the Aer Lingus EGM on July 16 (to give the Irish Government a golden share over Aer Lingus’s Heathrow slots) and Ryanair will also vote its 29.8% shareholding in favor of acceptance of the IAG offer, subject to this offer receiving regulatory approval from the European competition authorities.

Ryanair’s Michael O’Leary said:

“We believe the IAG offer for Aer Lingus is a reasonable one in the current market and we plan to accept it, in the best interests of Ryanair shareholders. The price means that Ryanair will make a small profit on its investment in Aer Lingus over the past 9 years.

This sale of our stake is timely given that our original strategy for Aer Lingus (to use it as a mid-priced brand to offer competition to flag carriers at primary airports) has been overtaken by the successful rollout – since September 2013 – of Ryanair’s “Always Getting Better” strategy, which has seen the Ryanair brand successfully enter many of Europe’s primary airports, being rewarded with strong growth in our network, traffic, load factor and profitability, while keeping our fares low and our punctuality high.

We wish IAG well with their takeover of Aer Lingus. When Ryanair first bid for Aer Lingus in late 2006, Ryanair (36 million passengers) carried 4 times Aer Lingus traffic (9 million). Today Ryanair (over 100 million) carries more than 10 times Aer Lingus traffic (10 million), and we will continue to deliver the vast majority of Ireland’s traffic and tourism growth in the coming months and years.”

Ken Odeluga, a senior market analyst at www.cityindex.com.sg comments on this latest news:

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It has taken the better part of seven months for IAG to put the final pieces of the Aer Lingus puzzle in place.

Ryanair has, after much delay, which it insisted was not down to intransigence, agreed to sell its 30% to IAG, which had already struck a deal with Ireland’s government to purchase the country’s 25%.

Reports that the EU will swiftly grant conditional approval appear credible.

Concessions by IAG were accepted by the antitrust authorities this morning. IAG offered to relinquish some slots and to give its competitors special terms, like allowing them to provide connecting at favourable terms.

All these agreements will tend to focus investors’ minds back on the details of the €1.3 billion bid, for which a strong part of the rationale rests on highly prized routes from Heathrow and lucrative routes between the UK and North America.

Aer Lingus had 300 slots at Heathrow as of December, with industry figures suggesting each is worth at least £5 million  per annum.

Also, Aer Lingus is not the unprofitable airline it was say about 15 years ago or more. It’s stronger in margin terms than Lufthansa, for instance, and had at least €550 million in free cash at last tally.

The additional 3.5%-4% of Heathrow market share will consolidate IAG’s dominance at the hub, ahead of the extension of capacity.

But now comes the hard part.

Despite its recent forecast upgrades, IAG remains the least profitable airline operator based in the UK or Ireland.

EasyJet and Ryanair are tightly matched and each seems to swap marginal dominance over the other every few years or so.

Either way, the pair has largely locked out all other large competitors in Europe, including IAG, for the last decade.

Plus, having already written down the value of its Aer Lingus stake, Ryanair’s £400 million proceeds from the sale will go straight to its bottom line.

The only way for a rival catch and match with the two above in terms of profits, is to grow, probably inorganically, and probably not in Europe, in the medium term.

With the soon-to-be-cemented deal, IAG has given itself the best chance among any large European carrier to close the profit gap, and the scale to absorb strategic hits to margins in Europe.

Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Ryanair Boeing 737-8AS EI-DPM (msn 33640) lands in Tenerife Sur.

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Bottom Copyright Photo: AirlinersGallery.com. Aer Lingus Airbus A319-111 EI-EPU (msn 3102) taxies to the gate at London’s Heathrow Airport.

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Ryanair is coming to Eilat, Israel, will name 30 aircraft after 30 Facebook fans

Ryanair (Dublin) has announced its first Israeli flights, with three new twice-weekly routes from Eilat’s Ovda Airport to Budapest, Kaunas and Krakow commencing in November.

In other news, Ryanair has opened a Facebook page (see below) joining most other carriers. According to the airline;

“To celebrate its new Facebook account and 30th birthday, Ryanair has launched a ‘30 Names 30 Planes’ competition, offering 30 fans the chance to have their name and face pictured on one of 30 Ryanair aircraft. Entry is through the Ryanair Facebook page, where fans can upload their photo and download a CGI video of their own Ryanair aircraft bearing their name and face, and the 30 lucky winners will be announced in September. ”

Ryanair 30 Years car (Ryanair)(LRW)

Photo Above: Ryanair.

Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-8AS EI-DHZ (msn 33583) arrives in Tenerife Sur.

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easyJet to add six new routes from Amsterdam

easyJet (London-Luton) is expanding again at Amsterdam. The low-fare carrier will add six routes from AMS for the winter season according to Airline Route: Grenoble (December 12, weekly), Lyon (December 17, four weekly flights), Milan (Linate) (October 27, six weekly flights), Salzburg (December 18, three weekly flights) Tel Aviv (October 26, four weekly flights) and Tenerife Sur (December 15, twice-weely).

In other news, the company will add four new routes from Lyon in December 2015. Besides Amsterdam, the airline will add new service from Lyon to Belfast (International), Southend and Naples per Airline Route.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A319-111 G-EZFD (msn 3810) taxies at Amsterdam Airport Schiphol (AMS) in the new 2015 livery.

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Jet2 adds two new destinations for its expanding summer schedule

Jet2 (Jet2.com) and Jet2holidays (Leeds-Bradford) has added two new routes to its ever expanding summer of 2016 program, announcing new routes to Girona (Costa Brava), Spain from Glasgow, Manchester and Newcastle and Naples, Italy from Edinburgh and Manchester.

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In addition to the two brand new destinations, Jet2.com is also launching Krakow as a new route from Manchester Airport. The twice-weekly flights will commence on April 28, 2016.

Assistant Editor Oliver Wilcock reporting from Manchester.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Jet2 operates under two brands, Jet2.com and Jet2holidays. Boeing 737-86N G-GDFS (msn 32243) prepares to land at Tenerife Sur in the Canary Islands.

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SAS reaches a new collection labor agreement with its Swedish pilots union

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Scandinavian Airlines-SAS (Stockholm) has issued this statement:

SAS has signed a new modern collective bargain agreement with the Swedish pilot union SPF. The negotiations have reached the targets within set timeframe and thus there will be no industrial action (strike) by the pilots in Sweden. SAS has now reached agreements with three of the four pilot unions on new contracts, which means that most of the SAS pilots are now covered by the new Scandinavian collective bargain agreement.

SAS’ objective is to invest in the aircrafts of the future, destinations and services that meet customers’ demand. Therefore, it is required that SAS adapts the collective bargain agreements to today’s competitive environment.

The new collective bargain agreement is valid for two years and shall enter into force on 21 May 2015.

SAS had as a preventative measure cancelled a limited number of flights to avoid having travelers being stranded in the event of a strike. We hope to return to normal traffic in Sweden as soon as possible.

Copyright Photo below: Paul Bannwarth/AirlinersGallery.com. Boeing 737-783 LN-RRB dramatically lands at Tenerife Sur.

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Airberlin Group’s first quarter net loss remains flat

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Airberlin Group (Airberlin and Niki) (Berlin) reported its first quarter net loss narrowly widened to €210.1 million ($237.6 million), up slightly from €209.8 million $237.2 million) in the same quarter a year ago. Stefan Pichler, CEO of Airberlin Group, stated “We are at the beginning of a long road to recovery.”

Here is the full report:

In the first quarter of 2015, EBIT rose to -159.9 million euros, or 23 million euros over the same quarter last year (Q1, 2014: -182.8 million euros). This demonstrates that despite a competitive market environment, the strategic and operational realignment at airberlin had already begun producing some positive effects on earnings at the start of the year.

Summary of consolidated earnings in the first quarter of 2015

Current performance reviews show airberlin’s average yield at 121.66 euros (Q1 2014: 116.72 euros). This represents a yield optimization of 4.2 percent as compared to the same quarter last year, and was achieved primarily through improvements in revenue management.

Revenue development showed an increase to 793.7 million euros, corresponding to a 4.2 percent growth in revenue over the same quarter last year (Q1 2014: 761.8 million euros). Due to an improved performance during the first three months, operating earnings (EBIT), at -159.9 million euros during the first quarter, also showed a 14 percent increase over the same quarter last year (Q1 2014: -182.8 million euros).

Allowing for current exceptional expenses from the ongoing restructuring program as well as non-recurring effects, adjusted EBIT was -151.4 million euros. Net profit in the first quarter of 2015 was -210.1 million euros (Q1 2014: -209.8 million euros). The Net profit decreased owing to higher interest expenditures and shifts in the market valuation of hedge instruments. 287.6 million euros in liquidity as of 31 March 2015 means Air Berlin PLC is in a stable financial position (Q1 2014: 273.0 million euros).

The current cost structure is marked by a slight rise in personnel and technical and maintenance expenses and increased airport charges. The personnel costs have risen by a direct employee takeover from NIKI, tariff developments and non-recurring expenses. Expenses incurred for technical and maintenance as well as airport charges will, however, be offset over the course of the year by systematic structural effects during the ongoing realignment.

Available seat kilometres (ASK) increased by 1.5 percent. Capacity utilization in the first quarter of 2015 stood at 83.2 percent, a modest increase over the same quarter last year`s rate of 81.8 percent. Total revenue per available seat kilometre (RASK) was 6.71 eurocts (up 2.6 percent on Q1 2014: 6.54 eurocts).

Total costs per ASK (CASK) rose by 0.8 percent year-on-year, going from 8.14 eurocts to 8.20 eurocts.

Stefan Pichler, CEO of Air Berlin PLC, comments on the results of the first quarter as follows:

”We have an initial operational earnings impact from the reduction in capacity and a slightly improved yield management approach. At the same time, seasonal effects such as Easter have also positively influenced the result. Still, we are at the beginning of a long road to recovery.“

Partnerships further strengthened, restructuring measures prove effective

Stefan Pichler emphasizes the importance of airberlin’s strengthened partnerships, in particular with Etihad Airways: ”During the first three months of the year, passenger volume increased by another 18 percent year-on-year, accounting for over 174.400 guests. We intensified our collaboration with Etihad Airways by expanding codeshare connections, with new ones available from Abu Dhabi to Hong Kong, Sri Lanka and Nairobi.“

As well within oneworld® a 19 percent increase in the number of passengers was recorded in the first quarter of 2015. Route performance and effective capacity utilization by the airline partner Iberia contributed significantly to growth.

The restructuring program, initiated in 2014, has already been showing initial positive effects since the start of 2015. Initial positive effects on revenue have been produced by the network restructuring concluded in January, further improvements to the revenue management system as well as the establishment of a new fare concept, and should intensify in the coming months.

During the first quarter, the new “airberlin business benefits” brand was introduced, which combines and further expands airberlin’s many existing corporate benefits. At the beginning of May, airberlin launched its new fare concept for short and medium-haul flights. The tailored fares open up new customer groups for airberlin and offer a great deal of flexibility. Another focus is airberlin’s service offensive. This includes its newly introduced customer advisory boards. In June, airberlin will launch its 24/7 service offensive – from the middle of the year, every passenger will receive feedback on their enquiry within 24 hours, and all customer enquiries will be fully processed within seven working days.

Because of increased market pressures and special expenditures, current foreseeable business development in the second quarter has so far not fulfilled expectations. airberlin will be working systematically on realignment in the coming quarters in order to achieve positive revenue development with respect to revenue passenger kilometres (RPK) as well as steady improvement in average revenue (yield). Continued expansion of product offerings is also of strategic importance in this regard.

Stefan Pichler is convinced of realignment`s effectiveness: “The first quarter has turned out properly. We understand, however, that we need to continue the systematic re-engineering of our company in order to achieve the goals we have set and generate the necessary market momentum. I am convinced that we are on the right track. Our focus on an open and inclusive management culture will enable us to drive further operational improvements.“

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin’s Airbus A321-211 D-ALSB (msn 1994) lands at Tenerife Sur.

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Airberlin posts a record loss in 2014

Airberlin (Berlin) issued their annual report for 2014 on April 29. The airline’s loss grew larger in 2014 despite its growing relationship with partner Etihad Airways (Abu Dhabi). The airline reported a net loss €376.7 million ($424.2 million), compared to a loss of €315.5 million ($355.2 million) for 2013.

Download and read the full report: CLICK HERE

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin is phasing out its Boeing 737s as it transitions to an Airbus fleet. Boeing 737-86J D-ABKN (msn 37756) prepares to land at Tenerife Sur.

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Wizz Air to fly to Iceland from Poland

Wizz Air (Budapest) has announced further growth of its route network from Poland. From July 3, 2015 Wizz Air will start operating a new service from Gdansk to Keflavik (near Reykjavik) in Iceland, with two weekly flights.

Wizz Air now offers a total of 116 Polish routes to 22 countries from seven Polish airports.

In other news, Wizz Air has announced twice-weekly service from Budapest to Tenerife, starting on October 30 with departures on Mondays on Fridays.

Wizz Air now flies from Budapest Airport with 41 routes to 21 countries.

Finally, Wizz Air announced a new Debrecen route to Bergamo (near Milan) which will start operating with two weekly flights on October 25.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Airbus A320-232 HA-LYA (msn 6077) with Sharklets lands in London (Luton).

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