Copyright Photo: Frontier Airlines (2nd) Airbus A320-251N WL F-WWBT (N302FR) (msn 7181) (Flo, the Flamingo) XFW (Gerd Beilfuss). Image: 935120.
Airbus issued this statement:
LATAM Airlines Group took delivery of its first Airbus A320neo – showcasing its white, indigo and coral livery and powered by Pratt & Whitney Pure Power PW1100-JM engines – on Monday, August 29, 2016 at Airbus headquarters in Toulouse.
LATAM Airlines Brasil will become the first airline in North and South America, and the fifth operator in the world, to operate the ultra-fuel efficient aircraft type.
Executives from LATAM and Airbus attended a delivery ceremony, which also marked the delivery of LATAM’s fourth A350 XWB — the first with the airline group’s new brand livery. LATAM was also the Americas’ first A350 XWB operator.
The A320 is configured in a 174-seat layout with 18” wide seats and equipped with the innovative Space-Flex cabin configuration. LATAM was the first in Latin America to order the A320neo in 2011, shortly after the program was launched. The airline group has a total of 67 A320neo Family aircraft on order.
Initially, LATAM plans to fly its first A320neo on Brazilian domestic routes to Brasília, Belo Horizonte, Campo Grande, Curitiba, Florianópolis, Porto Alegre, Recife, Rio de Janeiro (Galeão) and São Paulo (Guarulhos).
In November, LATAM will begin to fly regional routes throughout South America. The second LATAM A320neo, to be delivered later this year, is also expected to operate regional flights. The airline group has more than 250 Airbus aircraft in operation.
Copyright Photo: LATAM Airlines (Brazil) Airbus A320-271N WL F-WWBV (PT-TMN) (msn 7126) (first A320neo) XFW (Gerd Beilfuss). Image: 934622.
Frontier Airlines (2nd) (Denver) yesterday (October 9) took delivery of its first Airbus A321. The pictured A321-211 D-AZAA (msn 6793), named “Otto, the Owl” became N701FR on the handover.
As a result Airbus issued this statement:
Frontier Airlines, headquartered in Denver, Colorado, USA has taken delivery of the first Airbus A321 to join its fleet. In the last year, the airline has placed firm orders for 19 A321s, reflecting its market strength and the need for the largest Airbus A320 Family member. All 19 A321s are the current engine option (ceo) and will be equipped with Sharklets. Each will seat 230 people in a single class, and be powered by CFM56-5B engines from CFM International. Frontier’s current in-service fleet consists of 57 A320 Family aircraft (35 A319s and 22 A320s). In addition to the remaining 18 A321s on backlog, the airline has 18 A319neo (new engine option), 62 A320neo, and two A320 ceo aircraft on order, for a total backlog of 100 Airbus single-aisles.
All of Frontiers A321s will feature lightweight composite Sharklets, 2.4-meter/94-inch tall wing-tip devices that provide a fuel consumption reduction of up to 4 percent, plus either a range extension of 100 nautical miles or increased payload of up to 450 kilograms/992 pounds.
Frontier’s new A321s will initially be used on their routes from Orlando to Philadelphia, Denver, Cleveland and Detroit. The airline just this fall opened up a new crew base in Orlando to support the A321.
Top Copyright Photo: Gerd Beilfuss/AirlinersGallery.com (all others by Airbus). A321-211 D-AZAA (msn 6793) is pictured at the Airbus facility at Hamburg (Finkenwerder).
Aeroflot Russian Airlines (Moscow) has agreed to acquire 75 percent of the shares of failing Transaero Airlines (Moscow). Aeroflot is buying out its main competitor (and its $1.6 billion debt) for the symbolic price of one ruble. Transaero Airlines is the second largest airline in Russia and has lately been failing and building up a large debt.
According to Reuters, “Transaero will be completely overhauled and integrated into the Aeroflot group,” an Aeroflot spokesman was quoted as saying by RIA news agency.
For now, the Transaero Airlines name will be kept alive as a significant but shrinking part of the Aeroflot Group. However for the long term, will Transaero be merged into Aeroflot and the brand retired?
Above Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. Transaero has been introducing this new brand with its new deliveries. Will this new look be retained?
51 percent of the Aeroflot stock is owned by the government of Russia. The government is backing its major industries.
Transaero Airlines (and many other Russian airlines) have been struggling since the ruble collapsed in 2014. In short, Russian citizens are traveling less overseas with their devalued currency.
As we previously reported, even Aeroflot reported a loss in the first half of this year.
On September 1, Transaero Airlines issued this short statement:
The Government of the Russian Federation held the meeting of the Intergovernmental commission chaired by Igor Shuvalov, First Deputy Prime Minister, on the issues of air transport industry.
In the interests of the development of the commercial aviation and creating one of the largest in the world group of airlines, the commission has approved the acquisition of JSC Transaero Airlines by Aeroflot group.
The shareholders of Transaero Airlines believe this measure will serve the interests of passengers, personnel and partners of the airline.
The Chairman of the meeting has highly appreciated the role of the founders, managers and all the personnel of Transaero Airlines in the modern history of the commercial aviation of the country.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Ex-United Airlines and Air India Boeing 777-222 ER EI-UNV (msn 28714, ex N205UA/VT-AIK) arrives at Los Angeles International Airport.
Spirit Airlines (Fort Lauderdale/Hollywood) has announced daily, nonstop service to and from Louis Armstrong New Orleans International (MSY) and McCarran International Airport (LAS) in Las Vegas.
This new daily service begins on November 13, 2015 and brings the total number of Spirit nonstop flights to six destinations from New Orleans including Chicago (O’Hare), Ft. Lauderdale/Hollywood, Houston (Bush Intercontinental), Dallas/Fort Worth, and Detroit.
Spirit operates 28 daily departures to 19 destinations from Las Vegas.
Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. This new Airbus A321 is pictured in the new bright yellow 2014 livery. The airliner is seen on a test flight at Hamburg (Finkenwerder). Airbus A321-231 D-AYAH (msn 6736) will become N658NK on delivery.
Volaris (Mexico City) on April 22 took delivery of its first Airbus A321-200. The pictured A321-231 D-AZAN (msn 6558) at Hamburg (Finkenwerder) was leased as XA-VLH from ALC. The low-fare airline has another copy on order. Volaris is now an operator of the A319, A320 and the A321.
On the financial side, the company reported its first quarter results with this report:
First Quarter 2015 Highlights
Total operating revenues were Ps.3,768 million for the first quarter, an increase of 35.8% year over year.
Non-ticket revenues increased 64.6% for the first quarter year over year. Non-ticket revenue per passenger increased 41.6%, reaching Ps.337 (US$22) for the first quarter.
Total operating revenue per available seat mile (TRASM) increased to Ps.123.8 cents for the first quarter, an increase of 22.4% year over year.
Operating expenses per available seat mile (CASM) decreased 5.5% for the first quarter year over year to Ps.112.5 cents (US$7.4 cents). CASM expressed in US cents decreased 18.4% for the first quarter year over year.
Adjusted EBITDAR for the first quarter was Ps.1,204 million, a Ps.1 billion increase year over year with an Adjusted EBITDAR margin of 32.0%, a margin increase of 26.1 percentage points.
EBIT reached Ps.346 million with an operating margin of 9.2% for the first quarter, a margin improvement of 26.8 percentage points.
Net income was Ps.306 million ($19.8 million) (Ps.0.30 per share / US$0.20 per ADS) with a net margin of 8.1% for the first quarter, a net margin improvement of 21.4 percentage points.
During the first quarter the net increase of cash and cash equivalents was Ps.862 million mainly driven by the resources provided by operating activities of Ps.949 million. Unrestricted cash and cash equivalents was Ps.3,156 million (US$208 million), representing 21% of the last twelve month total revenues.
Volaris´ CEO Enrique Beltranena commented: “Volaris’ strong performance for the first three months of 2015 are evidence of the hard work and excellent execution to improve financial performance following a very challenging year. We continue to diversify our network and strengthen our unbundled product strategy, increasing our international presence and growing non-ticket revenues while maintaining cost discipline. We are committed to continue building solid foundations towards a strong and profitable 2015”.
Improving Macroeconomic Environment
The Mexican macroeconomic environment:
GDP growth for the full year 2014 was 2.1%.
Consumer confidence increased 7.8%, 6.8% and 4.8% year over year in January, February and March of 2015, respectively.
The Mexican General Economic Activity Indicator (IGAE) increased 2.0% year over year in January of 2015.
Exchange rate volatility: The Mexican peso depreciated 12.8% year over year against the US dollar, as the exchange rate devalued from an average of Ps.13.23 pesos per US dollar in the first quarter of 2014 to Ps.14.93 pesos per US dollar during the first quarter of 2015.
Lower fuel prices: The average economic fuel cost per gallon decreased 27.1% year over year in the first quarter of 2015, reaching Ps.29.7 (US$1.96) per gallon.
Focus on Network Diversification and Revenue Management Results in Unit Revenue Improvement
Unit revenue improvement and capacity management: TRASM and yield increased 22.4% and 17.5% for the first quarter year over year, respectively, as a result of a recuperating domestic fare environment and solid international fare environment. Domestic capacity increased 4.0%, reflecting capacity discipline and supporting yield recovery, while international capacity increased 31.4%.
Non-ticket revenues growth: Non-ticket revenues per passenger increased 41.6% year over year for the first quarter as Volaris continues to observe a customer acceptance of its ancillary revenue strategy. This growth is mainly driven by improved ancillary bundles and revenue management of bag and seat fees, as well as new product offerings.
Air traffic volume increase: The Mexican DGAC reported an overall passenger increase for Mexican carriers of 9.2% for January and February 2015. Volaris’ market share among Mexican carriers increased to 23.9% in both domestic and international markets, the second largest share among them.
New routes launch: In the first quarter, Volaris opened five routes (four domestic and one international), focusing on its VFR customer base, both in the domestic and the Mexico-US cross-border market.
First Quarter Operating Revenues: Managing Capacity for Profitability Results in Solid Traffic and Revenue Indicators
Volaris booked 2.5 million passengers in the first quarter 2015, a 16.2% year over year growth rate. Volaris traffic (measured in terms of revenue passenger miles, or RPMs) increased 10.0%.
Volaris’ total operating revenues were Ps.3,768 million in the first quarter, an increase of 35.8% year over year. Non-ticket revenues and non-ticket revenue per passenger reached Ps.846 million and Ps.337 (US$22), respectively. Non-ticket revenues per passenger increased 41.6%.
Maintaining Cost Discipline: Fuel Savings Combined With Other Efficiencies
CASM for the first quarter 2015 was Ps.112.5 cents (US$7.4 cents), a 5.5% decrease compared to the first quarter of 2014, mainly driven by a lower fuel price per gallon and efficiencies achieved in landing, take-off and navigation expenses, salaries and benefits. On a US dollar basis, CASM in the first quarter decreased 18.4% compared to the same period in 2014.
In the first quarter, Volaris experienced pressures in US-dollar denominated costs such as aircraft rents, international airport costs, and maintenance expenses due to the exchange rate depreciation of the Mexican peso.
Young and Fuel Efficient Fleet
As of March 31, 2015, the Company´s fleet was comprised of 51 aircraft (33 A320s and 18 A319s), with an average age of 4.5 years. Volaris expects to end 2015 with 55 aircraft, including our first two A321s which will be entering the fleet during the second quarter of the year.
Positive Cash Flow Generation, Strong Balance Sheet and Good Liquidity
During the first quarter the net increase of cash and cash equivalents was Ps.862 million mainly driven by the resources provided by operating activities of Ps.949 million.
As of March 31, 2015, Volaris had a record balance of Ps.3,156 million in unrestricted cash and cash equivalents, representing 21% of the last twelve month operating revenues. Volaris recorded negative net debt (or a positive net cash position) of Ps.1,900 million and total equity reached Ps.4,806 million.
During the first quarter of 2015, Volaris incurred capital expenditures of Ps.50 million, which included acquisitions of rotable spare parts, furniture and equipment of Ps.61 million, partially offset by reimbursements of net pre-delivery payments of Ps.11 million.
Active in Fuel Risk Management
Volaris has continued to remain active in its fuel risk management program with a combination of financial instruments including Jet Fuel swaps and purchase of call options. In the first quarter Volaris hedged 29% of fuel consumption at an average price of US$2.53 per gallon, which combined with the 71% unhedged consumption, resulted in a blended average economic fuel cost of US$1.96 per gallon for the quarter.
Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. As of March 31, 2015, the Company´s fleet was comprised of 51 aircraft (33 A320s and 18 A319s), with an average age of 4.5 years. Volaris expects to end 2015 with 55 aircraft, including the first two A321s.
EasyJet (UK) (stylized as easyJet) (London-Luton) and Airbus celebrated their successful partnership yesterday (April 22) at a ceremony in Hamburg (Finkenwerder) to mark the delivery the airline’s 250th Airbus A320 family aircraft. Carolyn McCall, easyJet CEO, Jean-Paul Ebanga, CFM International President and CEO, Didier Evrard, Airbus EVP and Head of Programs, and Christopher Buckley, Airbus EVP Europe, Africa and Asia-Pacific were present at the event.
To celebrate the 250th delivery, easyJet unveiled its newest A320 with a unique livery featuring 250 miniature aircraft (below). As with other recent deliveries to easyJet, the A320 is equipped with the latest technology and fuel-saving Sharklets.
The airline flies 234 aircraft on more than 750 routes to over 130 airports across 33 countries.
easyJet operates Europe’s largest and the world’s fourth largest Airbus single aisle fleet. Since easyJet took delivery of its first Airbus aircraft (an A319) in September 2003, Airbus has delivered an aircraft on average every 16 days since the first delivery
EasyJet has 158 aircraft currently on order, and in terms of total aircraft orders is Airbus’ third biggest airline customer. Currently easyJet fly a fleet of 85 A320s (180 seats) and 149 A319s (156 seats).
Photos: Airbus. The pictured Airbus A320-214 D-AVVL (msn 6572) with the special emblems became G-EZOL on the handover on April 22.