Atlas Air Worldwide Reports Double-Digit Earnings Increase, Updates 2012 EPS Expectation

PURCHASE, N.Y.—(BUSINESS WIRE)— Atlas Air Worldwide Holdings, Inc. (NAS: AAWW) , a leading global provider of outsourced aircraft and aviation operating services, today announced double-digit earnings growth for the third quarter of 2012 and provided updated guidance for full-year earnings growth in excess of 13% on both a reported and adjusted basis.

For the three months ended September 30, 2012, net income attributable to common stockholders increased 20% to $33.9 million, or $1.27 per diluted share, compared with $28.2 million, or $1.07 per diluted share, for the three months ended September 30, 2011.

On an adjusted basis, third-quarter 2012 net income attributable to common stockholders rose 10% to $33.4 million, or $1.26 per diluted share, compared with $30.4 million, or $1.15 per share, in the third quarter of 2011.

Revenues in the third quarter of 2012 grew 13%, increasing to $409.3 million from $362.9 million in the third quarter of 2011.

“Our third-quarter results highlight the transformation and diversification of our business model and the essential elements of our growth story. We have built a resilient company that is delivering increasing earnings, improved margins and growing free cash flow in a challenging business environment,” said William J. Flynn, President and Chief Executive Officer.

“In an airfreight market that has underperformed expectations this year and in the face of a marked decline in military cargo demand, we are executing on our strategic growth plan that leverages our core competencies and underscores our ability to perform well in all economic conditions.

“We have aggressively managed and modernized our fleet, developed and grown our express network ACMI service, and are adding our new 747-8F aircraft. We’re also capitalizing on new organizational capabilities, such as our military passenger flying, CMI operations and 767 service, and we are driving additional operating efficiencies through our culture of continuous improvement.”

Third-Quarter Results

Revenue and profitability growth in our core, long-term ACMI business during the third quarter were driven by our new 747-8F aircraft, which began to enter service late in the fourth quarter of 2011.

Volume growth was primarily due to the continued ramp up of CMI flying for Boeing and DHL Express. ACMI results during the period benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments. ACMI customers flew 5.2% above contractual minimums during the quarter.

In AMC Charter, volumes and profitability increased as strong growth in our military passenger service outweighed a 50% reduction in military cargo block-hour volumes. AMC Charter revenues reflected a reduction in cargo revenue and a 33% reduction in the average “pegged” fuel price paid by the U.S. military, partially offset by an increase in passenger flying. The impact to revenue from changes in the “pegged” fuel price is generally offset by a corresponding impact to fuel expense.

AMC Charter results also reflected an increase in premiums earned on flying additional, more efficient 747-400 cargo aircraft in the third quarter of 2012 compared with less efficient 747-200 aircraft in the third quarter of 2011, partially offset by a reduction in the number of one-way AMC missions.

In Commercial Charter, increased revenues and volumes reflected the deployment of 747-400 cargo aircraft in lieu of retired 747-200s, the deployment of an additional 747-400 cargo aircraft to support increased demand in South America, and 747-400 aircraft from ACMI during remarketing periods.

Commercial Charter results were affected by a reduction in yields driven by softer charter-market conditions compared with the third quarter of 2011, and a reduction in return legs due to fewer one-way AMC Charter missions.

Earnings in the third quarter of 2012 also reflected a reduction in maintenance expense, primarily due to the retirement of 747-200 aircraft and lower maintenance expense for 747-400 aircraft, partially offset by an increase in volume-related maintenance expense across the fleet. Results in each segment were affected by increased crew costs, with AMC Charter and Commercial Charter incurring other volume-driven operating expenses and higher aircraft ownership costs related to the deployment of 747-400 aircraft in lieu of 747-200 aircraft. Results also included an effective income tax rate of 36.4%, reflecting the resolution of income tax examinations in Hong Kong during the quarter.

Adjusted results in the third quarter of 2012 exclude incremental costs related to the retirement of the company’s 747-200 fleet, costs incurred to refinance Ex-Im Bank-backed financing, and a gain on the disposal of a 747-200 engine. Adjusted results in the third quarter of 2011 exclude pre-operating expenses for the introduction of new aircraft types, including incremental costs incurred as a result of aircraft delivery delays, as well as a gain on the disposal of aircraft.

Nine-Month Results

For the nine months ended September 30, 2012, net income attributable to common stockholders increased 24% to $77.5 million, or $2.92 per diluted share, compared with $62.6 million, or $2.37 per diluted share, for the nine months ended September 30, 2011.

On an adjusted basis, net income attributable to common stockholders for the first nine months of 2012 rose 13% to $78.3 million, or $2.95 per diluted share, compared with $69.1 million, or $2.62 per diluted share, in the first nine months of 2011.

Revenues in the first nine months of 2012 totaled $1.19 billion, an increase of 18% from $1.01 billion in the first nine months of 2011.

Cash, Cash Equivalents and Short-Term Investments

At September 30, 2012, our cash, cash equivalents and short-term investments totaled $325.1 million, compared with $195.2 million at December 31, 2011.

We expect our cash, cash equivalents and short-term investments at December 31, 2012, to total approximately $440 million.

Similar to the first nine months of 2012, the change in cash, cash equivalents and short-term investments for the full-year of 2012 is expected to be primarily driven by an increase in cash provided by operating activities and financing activities, partly offset by an increase in cash used for investing activities.

Net cash used for investing activities in the first nine months of 2012 primarily related to the purchase of our fourth and fifth 747-8F cargo aircraft for our ACMI operations, a third 767-300ER passenger aircraft for our AMC Charter operations, and a 737-300 cargo aircraft for our Dry Leasing business.

Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the delivery of our fourth and fifth 747-8Fs that were partially offset by payments on debt obligations and debt issuance costs. Both the proceeds from our issuance of debt and the payments on our debt obligations reflect the refinancing of a total of $284.7 million of floating-rate term loans with fixed-rate notes issued in the capital markets.

Outlook

“We continue to anticipate strong, double-digit earnings growth in 2012,” said Mr. Flynn. “However, given the relative underperformance of the airfreight market to date this year and the softer-than-expected peak season that is materializing, we now anticipate that reported and adjusted fully diluted earnings will increase approximately 13% compared with adjusted 2011 EPS, to more than $4.65 per share rather than over $5.10, as our block hours increase approximately 12%.”

Block-hour volumes should total approximately 153,000 hours in 2012, about 7,000 fewer hours than previously anticipated. ACMI flying should account for about 70% of expected 2012 block hours, with about 15% in AMC cargo and passenger charter and 15% in Commercial Charter. ACMI customers are expected to fly approximately 5% above contractual minimums in the fourth quarter and 3% to 5% above for the entire year. During ACMI remarketing periods, any available 747-400F aircraft will continue to fly in our charter businesses.

In line with anticipated 2012 flying levels, maintenance expense is expected to total approximately $26 million in the fourth quarter and approximately $163 million for the full year.

Multiple new high-tech product launches have begun and are expected to continue during the fourth quarter. These products, which are time-sensitive-to-market and generally shipped by airfreight, should have a positive impact on volumes and yields, particularly in trade lanes supported by our ACMI customers and our charter operations.

“Our business model is working as expected, and we are growing earnings and expanding margins despite the global economic slowdown,” Mr. Flynn noted.

“High-tech products, automotive and manufactured goods, pharmaceuticals, fresh foods and other perishables are moving, and airfreight remains vital. It is never a smooth, straight line, but airfreight will continue to grow from today’s near-record global tonnages.

“We are well-positioned to serve our customers, reflecting the global scale and scope of our operations and our decision to invest in modern, efficient aircraft. Our brand stands for excellence.

We have a track record of executing on our commitments. And we are leveraging our deep understanding of the global markets as we continue to grow our business and deliver advantage and value to our customers and stockholders.”

http://www.aviator.aero/press_releases/8749 

American Airlines, Sabre settle legal dispute

(Reuters) - American Airlines and ticket distributor Sabre Holdings TSG.UL said on Wednesday they have settled a dispute over alleged anti-competitive business practices.

American had claimed that global distribution systems that provide fare information to travel agents had conspired with each other to protect their mutual interests, organized boycotts to punish American for supporting alternatives and used other practices that squelched competition.

A jury trial in the matter had started in state court in Texas earlier this month.

American, a unit of AMR Corp (AAMRQ.PK) that filed for Chapter 11 protection last November, will receive an undisclosed monetary payment from Sabre. The two companies renewed their distribution agreement, they said in a joint statement.

Sabre, which owns Travelocity, is one of several global distribution systems that act as pipelines to provide fare and flight information. It was once a unit of American.

The settlement requires approval by U.S. bankruptcy court.

As a result of the settlement, Sabre is no longer a defendant in American's continuing federal suit against Orbitz Worldwide (OWW.N) and airfare data provider Travelport.

The federal case is American Airlines Inc. V. Travelport Ltd et al, U.S. District Court, Northern District of Texas, No. 11-0244.

(Reporting by Karen Jacobs; Editing by Tim Dobbyn)
(This story was refiled to show that the trial was in state court in Texas, not in federal court; and adds reference to federal case in the seventh paragraph)

China airline drops free ticket offer to Japan after outcry

(Reuters) - Chinese budget carrier Spring Airlines has canceled an offer of free tickets to Japan, bowing to pressure after bloggers slammed the company online and labeled it a traitor, in a sign of heightened nationalist sentiment amid a territorial dispute.

The country's largest private low-cost carrier withdrew the offer of free round-trip tickets between Shanghai's Pudong airport and Japan's Saga prefecture, a rural area in southern Japan near the city of Fukuoka, just 2-1/2 days after it was launched.

"We canceled the offer last night after taking into consideration the feeling of netizens," airline spokesman Zhang Wuan told Reuters.

The promotion, which would have seen customers pay just tax and surcharges totaling about 1,030 yuan ($160), aimed to boost demand after a dispute over islands in the East China Sea cut Spring Airlines' passenger volume by half on some of its Japan routes.

One blogger accused the airline of being a traitor, hurting the feelings of Chinese and damaging the country's image. "Chinese nationals should boycott Spring Airlines," the blogger said.

Spring Airlines also withdrew an offer of free tickets between Shanghai and Japan's Kagawa that was launched on Tuesday, the spokesman said.

Asked whether Spring Airlines would cut capacity to Japan further as the islands row had forced the budget carrier and some other Chinese rivals to cut the number of flights to Japan, the spokesman said: "We canceled the offer first and now don't want to speak too much to trigger controversy." ($1 = 6.2503 Chinese yuan)

Boeing says 787s for United Airlines are delayed

(Reuters) - Boeing Co (BA.N) said delivery of at least two 787 jets for United Airlines (UAL.N) was taking longer than expected, a surprise hitch in delivery to its first U.S. customer that is set to disappoint some customers wanting to ride the new fuel-efficient aircraft.

Boeing said it is working diligently to complete United Airlines' next 787s for delivery but that the process is "taking a few days longer than anticipated."

The delay, while short, is another missed date for the 787 program which was delayed for nearly 3-1/2 years to address quality problems with the jet that uses substantial amounts of lightweight composite materials to replace aluminum in the fuselage and wings.

United took delivery of its first 787 in September and is due to start carrying customers with it on November 4. The airline is scheduled to receive five of the jets this year.

United said on Tuesday that Boeing told it the second plane was not ready for delivery and the airline said it believes all of the four remaining jets could be delayed.

It has begun notifying customers who were scheduled to fly on the second 787 jet that they will travel on a different model of plane instead.

"We're offering to refund or re-book customers who specifically intended to fly on one of the early Dreamliner flights," said Christen David, director of corporate communications for United Continental Holdings Inc.

"We believe this year's subsequent 787 deliveries could be delayed as well, but we are hopeful that we will still receive four more 787s this year," said David.

She declined to say what issue had delayed the plane delivery, or when it was due to be delivered now.

Boeing said it was not one specific issue with the plane and declined to elaborate. It said the issues would not affect delivery of 787s to other customers.

"The process for completing an airplane requires thoroughness and a disciplined adherence to process," said Tim Bader, a Boeing spokesman. "We've laid out a challenging schedule for the team. But we've also told them we cannot compromise on the rigor with which we finish our work, test our products and certify them for delivery."

The 787 Dreamliner, a wide-body jet, seats 219 passengers in United's configuration, and is billed as Boeing most fuel-efficient jet. It was initially scheduled to enter service in May 2008, but delays pushed its first flight back to December 2009 and it entered service on October 26, 2011, with launch customer All Nippon Airways (9202.T).

United may upgrade some A350 jet orders: sources

(Reuters) - United Airlines is mulling upgrading some of its Airbus (EAD.PA) A350 orders to the largest member of the European aircraft family in a possible setback for Boeing Co's (BA.N) 777 mini-jumbo, industry sources said.

The deal would be seen as a breakthrough for the A350-1000, which suffered a four-year gap in orders until Cathay Pacific Airways Ltd (0293.HK) selected the 350-seat aircraft in July.

Airbus is now actively looking for more buyers for the long-range jetliner and weighing an increase in production to keep up momentum for its assault on Boeing's near-monopoly of the market for aircraft of just under 400 seats.

United Continental Holdings Inc (UAL.N) has on order 25 of a smaller category of aircraft, the A350-900, worth $7 billion at current list prices.

The airline may upgrade some of these orders to the A350-1000, or consider a new order for the larger aircraft, or both, an industry source said, asking not to be identified. The source added no decision appeared to be imminent.

United declined to detail the status of its talks regarding buying new aircraft or converting existing orders.

"We continuously have discussions with our aircraft manufacturers," United spokeswoman Christen David said on Thursday.

EADS subsidiary Airbus declined to comment.

Bloomberg News reported United was considering an A350-1000 order to replace its Boeing 747 jumbo jets.

The A350 was designed to compete with two categories of Boeing aircraft - the brand-new carbon-composite 787 Dreamliner and the larger 777, the world's best-selling wide-body jet.

Boeing is considering revamping the 777 to prolong the production cycle of its most profitable airliner.

Following a Reuters report, Airbus confirmed last month that it was planning to increase allocated production for the A350-1000, which is due to enter service in 2017, to grab sales from airlines maneuvering for early deliveries that can only be met by the 777.

While Boeing is under pressure from top buyers such as Emirates to firm up its plans for the 777X, as the tentative new version is known, Airbus is under pressure to score quick sales of the A350-1000 to recoup lost momentum. Airbus says the plane, which carries a list price of $321 million, offers significant savings over Boeing's best-selling 777-300ER. Boeing says Airbus performance will suffer because it is trying to compete in two categories with one airplane.

Industry analyst Richard Aboulafia of Virginia-based Teal Group told Reuters last month that any order that indicated a pattern of 777-300ER migration towards the A350-1000 would be "a big wake up call for Boeing."

Singapore Airlines Ltd (SIAL.SI) last week ordered 20 more A350-900s, the variant of the twinjet plane designed mainly to compete with the 787, and is expected to return to the market to weigh up the larger A350-1000 against the 777, industry sources said. The airlines is waiting for clarity on the next design of 777.

Boeing held a closed meeting of potential customers for the 777X on Wednesday.

"We have scheduled a series of meetings with customers to discuss twin-aisle airplanes, including our existing product line and future development options," Boeing spokeswoman Karen Crabtree said.
She added that the company is always talking with customers about their fleet requirements.

Meanwhile, the U.S. planemaker is close to a decision to launch a shorter-range, but larger-capacity stretched version of the 787, to be called the 787-10X, and a move could come in the next few weeks, industry sources said. The launch timing of the roughly 320-passenger jetliner could depend on last-minute negotiations between Boeing and the 787's engine makers, Rolls-Royce Holdings Plc (RR.L) and General Electric Co (GE.N).

Boeing shares were up 0.2 percent at $70.61 in afternoon trading on Thursday.

United Airlines takes delivery of second 787 Dreamliner

(Reuters) - United Airlines (UAL.N) said on Thursday it had taken delivery of its second 787 Dreamliner jet from Boeing (BA.N), following a delay by the aircraft maker, and that another three 787s due to arrive this year could also be delayed.

United is the first U.S. airline to put into commercial service the new carbon-composite jet, which carries a list price of $206 million to $243.6 million, depending on the model.

The second jet was due to be delivered last week, but United said it received it on Wednesday.
"We believe this year's subsequent 787 deliveries could be delayed as well," Christen David, director of corporate communications for United said.

She said the second plane would not be flown on a regular schedule in the short term.
"We will fly it around our domestic system over the next few weeks on an ad-hoc basis. The second aircraft is not regularly scheduled for a few more weeks, but will operate as a spare in the meantime."

Boeing said on Tuesday that delivery of at least two 787 jets for United was taking longer than expected. It was not one specific issue with the plane that caused the delay, Boeing said, declining to elaborate. United declined to comment on what caused the delay.

Boeing said the issues would not affect delivery of 787s to other customers.
Final work on the United airplanes was continuing, but "taking a few days longer than anticipated," Tim Bader, a Boeing spokesman said. "The process for completing an airplane requires thoroughness and a disciplined adherence to process."

Boeing declined to comment further on Thursday.

United said any delivery delay of the subsequent jets would not affect its operations. "Since we have spare aircraft, we have the flexibility to backfill any 787s we planned to use with these aircraft. We are hopeful that we will still receive three more 787s this year."

The 787 Dreamliner, a wide-body jet, seats 219 passengers in United's configuration, and is billed as Boeing's most fuel-efficient jet. It was initially scheduled to enter service in May 2008, but delays pushed its first flight back to December 2009 and it entered service on October 26, 2011, with launch customer All Nippon Airways (9202.T).

Boeing says future United 787s will arrive on time

(Reuters) - Boeing (BA.N) said it expects to deliver future 787 Dreamliner jets to United Airlines (UAL.N) on schedule, after the airline said Thursday it that it was concerned future deliveries could be delayed.

United said Thursday that it had taken delivery of the second of five of the jets due to arrive this year from Boeing. But delivery of the second jet was delayed several days, prompting United to say its future deliveries could also be delayed.

United is the first U.S. airline to put into commercial service the new carbon-composite jet, which carries a list price of $206 million. The second jet was due to be delivered last week, but United said it received it on Wednesday.

"We believe this year's subsequent 787 deliveries could be delayed as well," Christen David, director of corporate communications for United said.

But late Thursday, Boeing said that it expects to deliver all of United's subsequent planes due this year on time.

"We have no indication that the follow-on planes will be late," said Tim Bader, a Boeing spokesman. "We fully anticipate that delivery will be in the contracted time frame."

Bader said there was not one specific issue with the plane that caused the delay and declined to elaborate. He also said the issues with United would not affect delivery of 787s to other customers.
David said the second 787 plane would not be flown on a regular schedule in the short term.

"We will fly it around our domestic system over the next few weeks on an ad-hoc basis. The second aircraft is not regularly scheduled for a few more weeks, but will operate as a spare in the meantime."

United said any delivery delay of subsequent jets would not affect its operations. "Since we have spare aircraft, we have the flexibility to backfill any 787s we planned to use with these aircraft. We are hopeful that we will still receive three more 787s this year."

The 787 Dreamliner, a wide-body jet, seats 219 passengers in United's configuration, and is billed as Boeing's most fuel-efficient jet. It was initially scheduled to enter service in May 2008, but delays pushed its first flight back to December 2009 and it entered service on October 26, 2011, with launch customer All Nippon Airways (9202.T).

IN FOCUS: Boeing insists ‘illegal’ A350 launch aid still flowing to Airbus

The long-running Airbus versus Boeing transatlantic trade war over government subsidies for airliner development has flared up again, with Boeing proclaiming US compliance with a March 2012 World Trade Organisation ruling to redress "relatively small" subsidy infractions - of $5.3 billion or more, ranging from NASA and defence department research grants to Washington state government tax breaks - while redoubling its insistence that Airbus has continued to "thumb its nose at the WTO".

Speaking for the Airbus side of the dispute - technically a pair of counterclaims before the WTO by the USA and European Union going back to 2004 - EU trade spokesperson John Clancy countered: "We will now immediately review their compliance package to check whether the US have taken the necessary steps to end these subsidies and their adverse effects."

According to Boeing, US government action has addressed subsidies that the WTO in March identified as inconsistent with its rules.

"Unfortunately," Boeing continued, "the same cannot be said of Airbus and its government sponsors, which have thumbed their noses at the WTO. Despite a crystal clear ruling against launch aid subsidies, European governments have continued the practice by providing Airbus with billions of taxpayer euros and pounds for its next new product, the A350. What is more, the European governments have yet to remove the very substantial subsidies, including those propping up the A380, which the WTO's ruling in June of last year requires them to do.

"The illegal subsidies to Airbus, most importantly the pernicious, market distorting practice of launch aid, must stop. The US government remains committed to ending these subsidies, and Boeing fully supports the actions the US government has taken to ending them."

Court action to date has resulted in rulings against both sides and subsequent appeals, with both sides declaring victory at each step of the process.

In its March 2012 ruling the WTO dismissed some of Boeing's appeal against a March 2011 ruling that it could not have launched an aircraft as sophisticated as the 787 for delivery as early as 2008 without subsidies in 1989-2006 that fell foul of WTO rules.

That earlier ruling - initially finding $19.1 billion in illegal subsidies - also found that the resulting quality of the 787 did serious damage to sales of the Airbus A330 and the original A350.

In December 2011, Airbus and the European Union claimed to have put themselves in compliance with the WTO ruling in the US-Boeing case against the EU-Airbus, that some aspects of launch aid from France, Germany, Spain and the UK for the development of some earlier Airbus models should not have been allowed.

However, one lawyer familiar with the cases notes that unless the two sides either walk away from the dispute or press for resolution via a global agreement on airliner subsidies, the dispute is likely to involve several years of compliance arbitration and subsequent appeals.

For a full report on the subsidy dispute see flightglobal.com/wto

Software tools helping Airbus designers see through complexity

Humans are pretty good at visualising what will happen if they change one part of a simple system but when that change impacts a large number of outcomes, it takes a computer to work out all the effects.

Engineering consultancy Frazer-Nash believes a software tool it has developed in collaboration with Airbus and EADS Innovation Works addresses this problem, and will help engineers figure out early in the design process which key parameters need to be fixed, and which ones can be dealt with later.

Frazer-Nash aerospace business manager Glyn Norris says the tool is meant to shorten design times by helping engineers make the judgement calls that define the basic configuration of a design at the concept stage. That is, he says, to help answer the question, "what would happen if we changed X"?
Frazer-Nash developed the visualisation capability around statistical data from its partners at EADS, and the system is being used by designers working on the Airbus A350 landing gear. However, Norris says the tool could be used on just about any part of an aircraft, or indeed any complex industrial design.

Later in an aircraft's life it should also be useful, he adds. The same sort of "what if" questions arise when considering the feasibility and cost of, say, stretching an aircraft to accommodate more payload or altering a wing or attempting other aerodynamic improvements.

Ultimately, says Norris, the idea is to "de-risk" the design process by ensuring the important and expensive parameters are established early, so that later work deals with relatively minor challenges of optimisation.

http://www.flightglobal.com/news/articles/software-tools-helping-airbus-designers-see-through-complexity-377495/ 

MRO Europe: Airbus cautious about bonded structural repairs on A350

Airbus wants to concentrate structural repair development for critical composite parts on the A350 to bolted repairs, as it views alternative bonded repairs as "too big a step" on primary load-bearing structures for the time being.

Frédéric Gaible, A350 structures engineer in the airframer's customer services engineering and maintenance division, says there will be "limited scope" for bonded repairs on the largely composite twinjet, as regulations do not allow for them "at this stage".

The focus will remain on repairs with bolt-on reinforcements, because the development of bonded repairs for critical parts in the outer fuselage and wing area, where in-service damage is likely to occur, would be "too big a step", he says.

Gaible made the comments during a discussion at the MRO Europe conference about the changing relationship between manufacturers and maintenance providers in regard to composite repairs.
Airbus views itself as the main source for structural repair development on its aircraft, while operators and MRO providers will implement the respective approved processes.

But MRO companies are calling for greater sharing of technical data to be able to develop their own repairs. James Kornberg, general manager for customer support, products and business development at Air France Industries' aerostructures unit, says it frequently discovers damage on aircraft "which the OEMs didn't know about".

He believes operational experience with the aircraft gives MRO providers an advantage over the airframers. While repairs on new-generation aircraft are becoming more difficult, competition between OEMs and MRO providers must continue, he says.

Arne Lewis, associate technical fellow for Boeing's 787 service engineering division, denies MRO providers are under threat from the OEMs. However, he warns that intellectual property will not be as freely available for new aircraft as on legacy models.

http://www.flightglobal.com/news/articles/mro-europe-airbus-cautious-about-bonded-structural-repairs-on-a350-377511/ 

ETHIOPIAN ADDS THREE B787S WITH LONG-TERM LEASE AGREEMENT WITH ILFC

LOS ANGELES—(BUSINESS WIRE)—Nov. 1, 2012— International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc. (NYSE: AIG), announced today that Ethiopian Airlines, one of the fastest growing airlines in Africa, has agreed to lease three of Boeing’s new Dreamliner 787-8 aircraft.

“ILFC is proud to reinforce our partnership with Ethiopian Airlines by adding to their fleet the most advanced aircraft in the skies today – Boeing’s Dreamliner,” said ILFC Chief Executive Officer Henri Courpron. “Ethiopian is a proud airline with a history of success and commitment within Africa and international destinations around the world. We look forward to their continued success.”

Tewolde GebreMariam, Chief Executive Officer of Ethiopian Airlines, said, “In line with vision 2025 strategic road maps, Ethiopian is scaling up its fast, profitable and sustainable growth. Being the first in Africa and third in the world to operate the 787 Dreamliner aircraft and being satisfied with the performance of the fleet in service, Ethiopian is pleased to bring the B787 fleet to thirteen by 2015. We value our partnership with ILFC.”

ILFC’s Head of Europe, Middle East and Africa Colin Bole commented, “Africa presents a real opportunity for the aviation industry to expand and contribute to the growth and prosperity of the continent. ILFC is committed to partnering with the region’s strategically minded airlines such as Ethiopian.” Last year ILFC opened a full-service office in Amsterdam to support regional customers including those in Africa.

The aircraft are scheduled for delivery in the first half of 2015 and will carry GEnx-1B70/75 engines. ILFC is the largest customer for the Boeing 787 Dreamliner with an order book of 74 aircraft. The 787 incorporates visionary technologies that provide environmental improvements together with enhanced fuel efficiency and passenger comfort.

http://www.aviator.aero/press_releases/8750 

Iberia Maintenance to service Garuda Indonesia aircraft components in deal signed with GMF AeroAsia

Richard Budihadianto, chairman and CEO of GMF AeroAsia, Garuda Indonesia’s maintenance unit, and José Luis Ruiz de Castañeda, who heads Iberia’s maintenance and engineering division, have signed a contract whereby Iberia will exclusively maintain components of the fleet of Bombardier regional CRJ1000s operated by Indonesia’s flag-carrier airline. The fleet will number 18 such aircraft in 2015.

The five-year contract covers the inspection, repair, testing and certification of repaired and replaced components, along with access to Iberia’s pool of spares and the sending of a Main Base Kit of CRJ1000 components to GMF, which is located at the Soekarno-Hatta airport in Jakarta. The components include generators, flight recorders, ovens, fuel pumps, temperature and braking sensors, interphone control panels, emergency lights, battery chargers, digital clocks, windscreen wipers, etc.

Maintenance tasks will be carried out at Iberia Maintenance installations at Madrid-Barajas airport, which boast 18 production lines specialising in accessories, instruments, and components of A320, A330, A340, CRJ, B747, and B757 aircraft. The Iberia unit also maintains components for Iberia Express, Vueling, Iberia Regional Air Nostrum, Onur Air, Meridiana, Atlas Jet, Swiftair, and Orbest Orizonia.

GMF AeroAsia is a subsidiary of Garuda Indonesia. As the biggest MRO company in Indonesia and one of the dominant MRO players in the region, GMF AeroAsia is a strategic partner of Iberia to serve Asia. Garuda Indonesia is Indonesia’s largest airline with a fleet of 14 A330s, 10 B737s, 55 B737 NGs, two B747-400s and the first of the 18 CRJ1000s it has ordered. It flies to 33 domestic and 18 foreign destinations. It was recently voted “World’s best regional airline” and “Asia’s best regional airline”.

Iberia Maintenance inspects, maintains and repairs airframes, engines, and components for the Iberia group’s fleet and those of about 100 outside clients around the world. It is the world’s ninth largest aircraft maintenance and Spain’s largest in terms of income and staff size, while also a leader in repair, high technology, and aircraft modification. In 2011 it serviced 200 aircraft engines and more than 66,000 components, while also carrying out 1,161 A checks of aircraft.

http://www.aviator.aero/press_releases/8754 

United Airlines Completes Certification Process For Its 787 Dreamliner

CHICAGO, Nov. 2, 2012 /PRNewswire/ — United Airlines today announced that the company has successfully completed the Federal Aviation Administration (FAA) certification process for its 787 Dreamliner. United can now begin flying the Dreamliner for passenger service, beginning with its inaugural 787 commercial flight departing Houston for Chicago Nov. 4 at 7:20 a.m. CST.

United’s first Dreamliner arrived in Houston on Sept. 28 to begin a month-long certification program that included non-commercial flights to several of United’s domestic and international stations, totaling more than 100 flight hours. During this time, the aircraft underwent a series of test scenarios, including diversions and simulated mechanical issues, in thorough preparation for service.

“I want to thank my co-workers who worked so carefully and professionally to get United certified to operate the Dreamliner,” said United’s President and Chief Executive Officer Jeff Smisek. “Many people from across the company put in a lot of work to help us induct and prepare to operate the 787, and I’m proud to share this important day with all of them.”

United has received two of the 50 Dreamliners it has on order. Configured with 36 seats in United BusinessFirst, 70 seats in United Economy Plus and 113 seats in United Economy, the Dreamliner will revolutionize the flying experience for United customers and crews while delivering unprecedented operating efficiency, comfort and lower emissions. Customers will experience greater comfort with improved lighting, bigger windows, larger overhead bins, lower cabin altitude and enhanced ventilation systems, among other passenger-friendly features.

http://www.aviator.aero/press_releases/8755 

IATA: Traffic Growth Continues to Slow in September

Geneva – The International Air Transport Association (IATA) announced global traffic results for September showing a continued slowdown in the rate of traffic growth. Demand for passenger traffic was 4.1% above the level of September 2011. For air cargo, demand growth was even weaker at 0.6%.

The growth trend in air travel started to flatten in the second quarter, with no growth in the passenger market between April and August. The year-on-year comparisons are now also starting to show slower rates of growth. In September, passenger travel increased 4.1% on a year ago, down on the 5.3% year-on-year growth rate in August and well below the 6% average growth rate seen throughout the first half of the year. Capacity increased by 3.1% over the year-ago period, and the load factor stood at 80%, up 0.7% points compared to September 2011.

The minor 0.6% year-on-year growth posted for air cargo is less significant than the 0.6% fall in air freight volumes between August and September which is more indicative of the trend. This is the second notable month-on-month fall in air freight growth in as many months. This has eroded the stability in volumes achieved earlier in 2012. Capacity was trimmed 0.6% compared to year-ago levels. This strengthened the freight load factor slightly to 45.6% from 45.1% a year ago.

“A ‘two-speed’ recovery is emerging into a ‘multi-speed’ reality. Carriers in China, Latin America and the Middle East are growing strongly. Europe’s airlines are experiencing profitless growth in a strategy to manage high fixed costs and taxes. In Africa the challenge is to turn growth opportunities into profits. But for North American airlines the focus is on tightly managing capacity in order to optimize profits in a slow to no-growth environment. Asia-Pacific carriers outside of China are a mixed bag. Robust growth in China is being tempered by faltering markets in Japan and India,” said Tony Tyler, IATA’s Director General and CEO.

“Putting regional diversity aside, the fact that airlines are making any money at all with weak markets and high fuel prices is a tribute to their strong business performance, as evidenced by maintaining global load factors close to 80% since the start of 2012. Even with that, airlines are expected to eke out a global net profit margin of only 0.6%. It’s a tough year,” said Tyler.

International Passenger Markets

September international passenger demand rose 4.9% compared to the year-ago period, with all regions reporting traffic growth. Only Asia-Pacific carriers experienced a decline compared to August. Capacity rose 3.1% for the month, pushing the load factor up 1.3% points to 80.9% compared to a year ago.

European airlines experienced 5.4% growth on international services compared to September 2011, the strongest performance among the major regions despite recession conditions in Europe. With capacity up 3.5%, the load factor reached 83.9%, up 1.5% points on September 2011, and the second highest among the regions.

Asia-Pacific was one of the weakest regions, as demand rose just 1.7% year-on-year. Compared to August, the region recorded a 0.3% decline—the only region to do so. Tight capacity management, however, meant that the load factor rose 1% point versus last year to 77.2%.

North American airlines’ international traffic climbed 2.1% for the month, while capacity declined 0.2%, with the load factor reaching 84.6%, the highest for any region and a 2% point rise over September 2011.

Middle East carriers experienced by far the strongest traffic growth, with demand up 13.3% year-on-year. This was down compared to the 17% growth recorded in August but the growth comparison for August was inflated by seasonal impacts, with Ramadan dampening traffic growth during August 2011. September capacity rose 11.3% and the load factor strengthened to 78.7%.

Latin American airlines posted growth of 7.5%, second highest among the regions. Capacity climbed 6.2%—also the second highest—and the load factor rose 0.9% points to 78.2%. Compared to August, traffic rose 2.7%, the strongest month-on-month performance for any region.

African airlines’ traffic climbed 4.7% year-on-year, on a 3% rise in capacity. The load factor was 71.6%, the lowest of any region but a 1.2% point rise over last year.

Domestic Passenger Markets

Domestic results were mixed. Demand rose 2.6% compared to September 2011, which was a slowdown from the 5% year-on-year increase recorded in August. But September traffic rose 0.5% compared to August. Results varied strongly by country, with China and Brazil making major gains that partly were offset by weakness in India, Japan and the US.

China’s domestic travel resurgence continued with an 11.4% rise in demand versus a year ago. This strong growth is in line with recent data on industrial production and consumer spending and incomes, all of which show improvement. With capacity up 12.1%, however, the load factor slipped 0.5% points to 82.1%.

Brazil also experienced strong demand growth, with traffic up 7.1% on a 1.2% decline in capacity. The load factor soared 5.7% points to 74%. After several months of weak month-to-month traffic performance, September traffic rose 1.7% compared to August 2012.

Japan’s domestic market declined 0.3% in September year-on-year and the country’s domestic market was still 10% smaller than pre-earthquake levels. The export-driven economy continues to suffer from weak demand for its products owing to the global slowdown, leading to decreased domestic demand for air travel. Capacity rose 0.8% and the load factor softened to 67.4% from 68.2%.

US traffic slipped 1.5% in September while capacity rose by 0.3%. The load factor dipped to 80.5% from 81.9% last year, but still the highest among domestic markets.

Indian domestic traffic plummeted 9.9% compared to a year ago, the worst performance for any market, reflecting the slowing economy and capacity reductions that have suppressed domestic travel. September capacity fell 5.9%, dropping the load factor 2.9% points to 64.9%, the lowest of any market.

Air Freight (Domestic and International)

Air freight demand rose 0.6% compared to September 2011 but declined 0.6% month-on-month, eroding the small gains seen in August. All the major regions experienced year-on-year declines. The introduction of new consumer products such as the iPhone 5 could offset some downward pressure from the weak business environment.

Asia-Pacific carriers saw a 1.6% decline in demand in September compared to the previous year. This is an improvement over August, when demand dropped 5.3% but still no progress compared to a year ago. Capacity dropped 3%. North American airlines had a 1.1% drop in demand, against a 3.1% drop in capacity. The load factor climbed 0.7% points to 35.2%. European airlines had a 0.4% decline in traffic, but capacity climbed 1.2% and the load factor dropped 0.7% points to 45.6%.

Middle Eastern carriers had a 16.3% rise in traffic on a 6.9% rise in capacity, pushing up the load factor 3.8% points to 46.1%.

Latin American airlines’ demand slipped 1.6% while capacity jumped 9%, resulting in a load factor of 37.8%, down 4.1% points.

African carriers saw a 4.1% rise in demand with capacity up 1.4%, raising the load factor 0.6% points to 24.1%, the lowest for any region.

The Bottom Line: “Tough times deliver innovation. High oil prices have turned fuel management into a fine art of conserving every last drop. Consumer demand for convenience and simplified process supported the development of a whole new way to travel facilitated by e-tickets, bar-coded boarding passes and kiosk technology. And the recent approval of the foundation standard for a New Distribution Capability (NDC) means that travelers are set to benefit from a revolution in airline retailing,” said Tyler.

The World Passenger Symposium (WPS) 2012 boasted attendance of some 600 global leaders from across the travel value chain—including airlines, airports, travel agents and technology companies.

The Passenger Services Conference, meeting on the sidelines of the WPS, approved development of NDC based on XML standards. “NDC will enable airlines to retail their products in a modern way and with much greater product transparency to their customers across all channels—including travel agents. Now that the foundation standard is agreed, we are working with partner-experts across the travel value chain to move from theory to reality. Within the next five years, shopping for travel will take place in a much more customer-centric environment,” said Tyler.

http://www.aviator.aero/press_releases/8756

Emirates announces South Australian partnership

DUBAI, U.A.E. – Following the arrival of Emirates’ inaugural non-stop service from Dubai to Adelaide on Thursday, the airline today announced a new marketing partnership with the South Australian Government and Tourism Australia.

A joint marketing agreement was signed by Emirates, the South Australian Government and Tourism Australia, which will see AUS $2 million of marketing activities promoting South Australia’s tourism credentials across Emirates’ European network over two years.

“Today’s agreement with the South Australian Tourism Commission will achieve valuable returns for both the State and Emirates. South Australia has never had this level of connectivity into Europe, the Middle East and Africa and the early booking profiles demonstrate the power of Emirates’ global network in unlocking previously untapped markets, such as Glasgow, Hamburg and our hub, Dubai,”  said Salem Obaidalla, Emirates’ Senior Vice President Commercial Operations, Far East Australasia.

“We’re investing in South Australia for the long haul, dedicating a Boeing 777-300ER aircraft on the flights to Adelaide, fitted with our highest on-board product offering and employing more than 150 South Australians in airline and airport services.”

“Subject to regulatory approval, the Emirates and Qantas Global Aviation Partnership will offer travellers an even more seamless Australian and international network – including direct connectivity from Emirates’ global network to Port Lincoln and 50 other Australian destinations via Qantas’ domestic network,” Mr Obaidalla concluded.

South Australian Premier Jay Weatherill said the cooperative marketing agreement will help to promote South Australia and the new direct Emirates flights between Adelaide and Dubai.
“Yesterday saw the arrival of Emirates’ first direct flight from Dubai to Adelaide, opening an important tourist and business gateway to the Middle East and Europe,” Premier Weatherill said.

“Today, we’ve formalised a $2 million, two-year partnership with Emirates and Tourism Australia to promote South Australia’s tourism credentials and attract more visitors to the State. This is the latest in a series of initiatives to market South Australia around the world.”

The new marketing campaign will promote South Australia in the UK, Germany, France and Italy.
Emirates’ four flights per week between Dubai and Adelaide began on 1 November and will become daily from 1 February 2013.

“South Australia’s tourism drawcards will be more accessible than ever. The expected economic impact of daily Emirates flights into Adelaide is substantial, generating an anticipated $40m in direct expenditure and over 200 jobs over the next two years,” said Premier Weatherill.

Tourism Australia Managing Director Andrew McEvoy believes the new service will prove particularly popular with European travellers, providing direct access to Adelaide and the state’s world class wineries, events and other tourism attractions via the airline’s Dubai hub.

“Emirates has a long association with Australia, and is one of our most committed airline partners when it comes to marketing our country overseas, which gives me a lot of confidence that this new service will become a big success as the message starts to get out," Mr McEvoy said.

http://www.aviator.aero/press_releases/8757 

Delta Reports Financial and Operating Performance for October 2012

ATLANTA, Nov. 2, 2012 /PRNewswire/ — Delta Air Lines (NYSE: DAL) today reported financial and operating performance for October 2012.

During the month of October, Delta’s unit revenues improved 5.5 percent versus prior year, primarily due to corporate revenue gains and continued capacity discipline.

In response to Hurricane Sandy, Delta cancelled more than 3,500 flights in October, which caused a 2 percent system capacity reduction versus prior year. The company is estimating that the hurricane negatively impacted October revenues by $45 million and reduced October profit by approximately $20 million. Delta is still assessing the impact to November, but expects it to be less than October. Delta’s October unit revenue improvement was approximately one point higher than it would have been without the hurricane impact.

Delta’s New York area operations are recovering from the storm’s disruption. As of Thursday, Delta is operating at close to full schedule at New York-JFK and Newark, and operating at 80 percent of its normal schedule at LaGuardia. The company anticipates flying a full schedule at LaGuardia today.

“I’m proud of the efforts of Delta’s employees throughout the system in responding to the devastation of Hurricane Sandy and taking care of our customers,” said Richard Anderson, Delta’s chief executive officer. “It’s during events such as these that the team’s dedication to our passengers really shines.”

Despite the impacts of the hurricane, Delta continued to have excellent operational performance in October. Delta’s completion factor was 98 percent, and 85.5 percent of flights arrived on time.

http://www.aviator.aero/press_releases/8758 

JAL SKY SUITE 777 Ready for Launch on January 9, 2013

TOKYO November 2, 2012: Japan Airlines (JAL) will deploy the first JAL SKY SUITE 777 between Tokyo (Narita) and London Heathrow from January 9, 2013. Eligible customers can from today, select their preferred seats on flights operated with the JAL SKY SUITE 777 based on the configuration of the Boeing 777-300ER aircraft refurnished with the airline’s latest seats.

Unveiled on September 13, 2012, the seats in all four cabin classes of the JAL SKY SUITE 777 have been significantly enhanced in terms of spaciousness, comfort and functionality. The JAL SUITE in First Class, JAL SKY SUITE in Business Class, JAL SKY PREMIUM in Premium Economy and JAL SKY WIDER in Economy Class are a clear cut above their preceding models with attractive features such as larger personal TV screens, wider seat pitches and much more, providing customers a distinctive leap forward in their overall onboard experience.

The first of thirteen JAL SKY SUITE 777s will be operated as JL401/JL402 between Tokyo (Narita) and London Heathrow on alternate days from January 9, 2013 until the complete retrofit of the second 777-300ER scheduled within February; after which the brand-new seats will become available daily as both aircraft ply the route between these two metropolitan cities.

As the fleet of 777-300ER configured for JAL’s international network goes through refurbishment, the JAL SKY SUITE 777 will be progressively introduced on long-haul routes such as between Tokyo (Narita) and New York (John F. Kennedy) and the airline’s other European services.

INTREPID LEASES ONE AIRBUS A330-300 TO ASIANA AIRLINES

Intrepid Aviation today announced the lease of one (1) Airbus A330-300 aircraft, powered by Pratt & Whitney 4168-1D engines with Asiana Airlines, Inc. in Seoul, South Korea. The aircraft, which will deliver in April of 2014, will be on a long-term lease and is the first such aircraft Intrepid will be providing to the South Korean carrier.

“We are delighted to be establishing a business relationship with Asiana Airlines, one of the premiere carriers in the Asian market”, said Volker Fabian, Intrepid’s Chief Commercial Officer. “The successful conclusion of this transaction furthermore underscores our strong focus on Emerging Markets, which we are intending to build upon in the future.”

“We are pleased to begin a new business relationship with Intrepid. We hope and believe that we can further enhance our business with Intrepid in the future”, said Yong Wook, Lee, Senior Vice President, Asiana Airlines, Inc.

http://www.aviator.aero/press_releases/8760 

JAL Group Announces Consolidated Financial Results for First Half of Fiscal Year 2012

TOKYO November 2, 2012: The JAL Group (JAL) announced today, the consolidated financial results for the first half of fiscal year 2012 (year ending March 31, 2013).
During this reporting period of April 1 to September 30, 2012, risks from downward pressure on the economy caused by the European debt crisis, deflation, and recent territorial issues, were prevalent. Under these conditions, JAL rigorously increased employees’ profit consciousness through the divisional profitability management system in order to realize greater efficiency in management, based upon a solid foundation of flight safety, and endeavoured to meet the targets set out in the Mid-Term Management Plan announced on February 15, 2012.
Consolidated operating revenue, operating expense and operating income for this reporting period increased 5.7% to 634.2 billion yen, 522.0 billion yen, and 112.1 billion yen respectively. Ordinary income rose 7.7% to 111.0 billion yen and the total net income for the six months increased 2.4% from last year to 99.7 billion yen.
(2) Air Transportation Segment
International Passenger
JAL’s newest service to Boston has attracted customers expansively from all parts of Asia and North America, performing at a remarkably strong load factor of 83.6% on average since its inaugural in April this year.Additionally, the 787 Dreamliner was introduced between Narita and Delhi where demand continues to thrive, Narita and Moscow, as well as between Haneda and Beijing, to align supply with demand so as to improve profitability. Furthermore, a total of 214 charter flights were operated to off-line destinations such as Barcelona, Athens, Rome, Madrid, and Venice, tapping on the robust leisure demand prompted by the strong yen. This contributed to the 4.5% increase in JAL’s international network capacity in terms of available seat kilometer (ASK) compared to the same period last year.
Despite flight cancellations and a decline in passenger traffic on JAL’s China routes from late-September, traffic demand to Europe and South East Asia on the other hand was high. Over the Pacific, JAL’s joint business partner and oneworld® alliance member American Airlines (AA), resumed their daily Haneda = New York service on July 17, 2012, facilitating connections to destinations in North American and South America by the early morning arrival in New York, and attracting transit passengers in particular. Overall, demand in terms of revenue passenger kilometer (RPK) rose 17.1% compared to a year ago and resulted in a 8.2 percentage point increase in load factor to 76.2%.
JAL also expanded its network from Japan to Europe with the commencement of a joint business with British Airways (BA) on October 1, 2012. Launching the sales of joint fares from September 5, 2012 and starting codeshare fights with BA between Tokyo (Narita and Haneda) and London from October 1, 2012, products and services are being enhanced to improve the passenger experience between Japan and Europe. In Asia, JAL began codesharing on flights between Japan and Asia from July 1, 2012, with Malaysian Airlines – scheduled to officially join oneworld on February 1, 2013.
Through innovative services and products, JAL strived to meet the customers’ diverse needs and introduced the world’s first electronic manga service “SKY MANGA” in the international inflight entertainment program onboard the 787 Dreamliner. The airline is also the first and sole Japanese airline to provide onboard Internet connectivity with the launch of JAL SKY Wi-Fi on its international flights, starting with its daily New York service from July. Overall, revenue from international passengers increased 19.4 billion yen (10.2%) to 210.3 billion yen.
Domestic Passenger
In view of the rebound in passenger demand for flights from Haneda to Hokkaido, Chugoku, Shikoku and Okinawa after the post-quake decline last year, as well as on routes to and from Tohoku to meet the demand for post-quake restoration, JAL increased flight frequencies and assigned larger aircraft to these destinations. In July, JAL also resumed scheduled services between Sapporo and Niigata, and thus raised domestic ASK by 7.6% compared to the same period last year.
To boost demand, JAL increased flights that offer the popular “JAL First Class” service on the Haneda = Fukuoka route from July and on the Haneda = Okinawa route from August, and also made its highly-evaluated “Class J” business class product available on more domestic flights. RPK rose 7.7% while average load factor increased 0.1 points versus last year to 62.6%.
Among other efforts to encourage demand, JAL introduced new “Sakitoku” and “Super Sakitoku” discount fares to provide greater savings for customers who purchase their tickets up to 55 days in advance. As a result, revenue from the domestic passenger segment came to 250.4 billion yen, which is 7.0 billion yen (2.9%) more than the first half of last fiscal year.
International and Domestic Cargo
Amid a decline in overall cargo demand outbound Japan due to the economic downturn in Europe, JAL focused on utilizing the geographical advantage of Haneda airport to attract transit cargo of perishables and express goods. JAL also boosted demand from regional Japan by improving international and domestic connection services at Haneda and handled more high-value, temperature-controlled cargo such as pharmaceuticals to maximize revenue.
Domestically, JAL strived to secure stability of regular cargo by strengthening relationships with customers and actively promoted air transport of perishables from regional Japan. The volume of international and domestic cargo transported during the reporting period in revenue-cargo-ton-kilometers (RCTK) terms increased year-on-year by 4.5 % while revenue from this segment decreased 3.3% from a year before to 37.9 billion yen.
(4) Forecast of JAL Group Consolidated Financial Results
Reflecting the decline in passenger traffic in the air transportation segment caused by the recent territorial issues, consolidated operating revenue for the full fiscal year is expected to decline by approximately 5 billion yen from the previously announced forecast. While fuel costs are expected to increase due to rising fuel prices, group-wide cost reduction initiatives will be continued in the second-half with a goal of lowering operating expense by 20 billion yen. As such, operating income is now expected to be approximately 15 billion yen more than previously estimated.
Consolidated ordinary profit is expected to increase by approximately 15 billion yen due to the increase in consolidated operating income, while net profit is expected to increase by approximately 10 billion yen due to an increase in taxes owing to a higher profit. Therefore, the forecast for the fiscal year ending on March 31, 2013 has been revised as shown in the table below.

WestJet launches new service to Manzanillo

CALGARY, Nov. 2, 2012 /CNW/ – WestJet today launches non-stop seasonal service to its 80th destination, Manzanillo, Mexico. The inaugural flight from Calgary to Manzanillo departs from Calgary International airport today at 10:05 a.m. MDT.

WestJet will fly between Calgary and Manzanillo weekly on Fridays.

“We’re excited to begin service to Manzanillo today as we reach this impressive milestone,” said Peter Tong, WestJet Director, Schedule and Network Planning. “Manzanillo is truly the Pearl of the Pacific, featuring stunning beaches and magnificent blue lagoons. With this new destination, and the addition of our other new sun destinations, we’re pleased to provide Canadians with even more service to the sun.”

“We are pleased to welcome WestJet’s newest service to Mexico’s West Coast,” said Stephan Poirier, VP and Chief Commercial Officer for the Calgary Airport Authority. “WestJet is an important partner in Calgary and we support their growth strategy, which continues to result in new air service offerings for our community.”

Full schedule details and affordable fares to Manzanillo are available by visiting westjet.com, by calling WestJet’s Sales Super Centre at 1-888-WESTJET (937-8538) or through your preferred travel agent.

WestJet Vacations also offers vacation packages to Manzanillo. With all hotels featuring beachfront views, choose from all-inclusive properties or accommodation with all the conveniences of home. For more information, visit westjetvacations.com, contact a WestJet Vacations Experience Specialist at 1-877-737-7001 or see your preferred travel agent.

Manzanillo is one of five new destinations joining the airline’s network as part of its 2012 summer schedule. Service between Toronto Pearson and Antigua, Curacao and Costa Rica began earlier the week. Non-stop service to Port of Spain, Trinidad & Tobago will begin on November 16.

www.aviator.aero

Singapore Airline Reports $168 Million Profit for First Half

GROUP FINANCIAL PERFORMANCE

First Half 2012-13

The SIA Group registered a net profit of $168 million in the first half of the 2012-13 financial year, a decline of $71 million (-30%) over the same period last year. This was mainly attributable to lower non-operating items as the Parent Airline Company last year benefited from a higher surplus on the disposal of aircraft and spare engines.

Group operating profit increased $8 million (6%) year-on-year to $142 million. This was contributed by the improvement from the first quarter ($61 million), albeit off a low base following the Japanese earthquake in the corresponding quarter last year. However, the $61 million increase was partially offset by a weaker second quarter (-$53 million), with the widening of losses from SIA Cargo as the air freight market remained soft.

Group revenue grew $294 million (4%) to $7,571 million, on the back of 8.0% growth in passenger carriage, partially set off by a 3.4% decline in yields. Group expenditure rose by $286 million (4%) to $7,429 million, principally on account of higher fuel cost (+$112 million, or +4%), arising from higher fuel volume uplift as capacity grew 5.1%. Other variable costs also increased in line with the capacity growth.

The operating results of the main companies in the Group for the first half of the financial year are as follows:
· Parent Airline Company Operating profit of $169 million ($53 million profit in 2011)
· SIA Engineering Operating profit of $66 million ($69 million profit in 2011)
· SilkAir Operating profit of $37million ($34 million profit in 2011)
· SIA Cargo Operating loss of $99 million ($31 million loss in 2011)

Second Quarter 2012-13

The Group net profit attributable to equity holders for the July-September quarter was $90 million (54% lower than the same period in the previous year).

Group expenditure was up 4% ($147 million) on the back of higher fuel volume uplifted. Revenue growth, however, lagged at a rate of 3% ($94 million) as both passenger and cargo yields fell.
Consequently, Group operating profit fell $53 million (-43%) to $70 million.

FIRST HALF 2012-13 OPERATING PERFORMANCE

The Parent Airline Company recorded an 8.0% increase in passenger carriage (in revenue passenger kilometres) during the half year, exceeding the 5.1% capacity expansion (in available seat-kilometres). As a result, passenger load factor improved by 2.1 percentage points to 79.6%.

SilkAir’s capacity growth of 23.1% was closely matched by the increase in passenger carriage, pushing passenger load factor marginally higher to 74.4%.

Despite reducing freighter capacity (in capacity ton-kilometres) by 2.5%, cargo load factor declined 1.5 percentage points to 62.7%, as cargo carriage declined at a higher rate of 4.7% (in load ton-kilometres).

INTERIM DIVIDEND

The Company is declaring an interim dividend of 6 cents per share (tax exempt, one-tier), amounting to $70.5 million, for the half-year ended September 30, 2012 (versus 10 cents interim dividend in the previous year). The interim dividend will be paid on November 26, 2012 to shareholders as at November 15, 2012.

FLEET AND ROUTE DEVELOPMENT

The Parent Airline Company took delivery of two A380-800s, reinstated two B777-200ERs that had been leased to another airline, decommissioned two B777-200s and returned one B777-300 on expiry of its lease during the second quarter. As at 30 September 2012, the operating fleet of the Parent Airline Company comprised 101 passenger aircraft – 58 B777s, 19 A330-300s, 19 A380-800s and five A340-500s – with an average age of 6 years 4 months.

SilkAir took delivery of one A320-200 during the quarter, and as at September 30, 2012 its operating fleet comprised 22 aircraft – 16 A320-200s and six A319-100s. SIA Cargo’s fleet remained unchanged at 13 B747-400 freighters. Scoot took delivery of two B777-200s, bringing its total fleet to four aircraft. It also launched inaugural flights to Bangkok, Taipei and Tianjin during the quarter.

With the commencement of the Northern Winter schedule on October 28, 2012, the Parent Airline Company is operating daily B777-200 services to Yangon. The new flights have replaced seven of SilkAir’s 16 weekly A320-200 services and increased combined seat capacity by 55%. A new Singapore-Riyadh-Jeddah routing is also operating three times a week, replacing existing services to Riyadh via Dubai and Jeddah via Abu Dhabi.

Additional capacity has also been mounted to London, Mumbai and Perth, while frequencies to Barcelona, Istanbul and Milan have been reduced. Services to Abu Dhabi and Athens have been suspended.

Visakhapatnam has been introduced as a new destination in SilkAir’s network, while frequency has been increased to existing destinations, including Hyderabad, Kochi, Kota Kinabalu, Kunming, Phuket and Thiruvananthapuram. Scoot has also expanded its network to include Tokyo, and will be adding Shenyang and Qingdao.

OUTLOOK

The continuing European economic crisis is dampening global business confidence, exerting downward pressure on loads and yields of both passenger and cargo businesses. These challenging market conditions are exacerbated by high and volatile jet fuel prices.

Despite the challenging environment, the Group’s strong balance sheet has enabled continued investment in new aircraft and in the upgrading of products and services.

The Group remains vigilant in ensuring efficient deployment of its fleet in response to changes in demand patterns. A strict cost management regime is also in place to mitigate cost pressures.

Note 1: The SIA Group’s unaudited financial results for the half year and second quarter ended September 30, 2012 were announced on November 2, 2012. A summary of the financial and operating statistics is shown in Annex A. (All monetary figures are in Singapore Dollars. The Company refers to Singapore Airlines, the Parent Airline Company. The Group comprises the Company and its subsidiary, joint venture and associated companies).

http://www.aviator.aero/press_releases/8768 

SIA CARGO TO PARK FREIGHTER

Singapore Airlines Cargo is to park one of its 13 freighter aircraft as a result of continuing weakness in demand for airfreight shipments and high fuel prices.

The aircraft will be removed from service in January 2013 and under current plans it will remain out of service until May 2014. A storage location is in the process of being selected.

“The air cargo market remains badly depressed and the near-term outlook continues to be challenging. Freight rates have declined to a level where certain flights are no longer viable. We have therefore taken this step to rationalise capacity further,” said SIA Cargo President, Mr Tan Kai Ping.

SIA Cargo operates 13 Boeing 747-400 Freighters. Earlier this year the Airline reduced freighter capacity by cutting back long-haul services, resulting in a reduction in flying hours for each aircraft.
SIA Cargo will continue to closely monitor market conditions and will make further capacity adjustments as required.

Air Arabia Maroc takes off to London Gatwick

Air Arabia Maroc’s inaugural flight connecting Casablanca and Tangier to London Gatwick airport took off on 29 October 2012. The new non-stop service offers a total of five weekly flights between Morocco and the United Kingdom.

The new weekly flights between Casablanca and London-Gatwick Airport operate on Mondays, Fridays and Sundays. On Sundays the flight departs Casablanca Mohammed V International Airport at 09:45 and arrives in London-Gatwick Airport at 13:10.

The return flight departs London-Gatwick Airport at 14:10 and arrives in Casablanca Mohammed V International Airport at 17:40. On Mondays and Fridays the flight departs Casablanca Mohammed V International Airport at 07:55 and arrives in London-Gatwick Airport at 11:20. The return flight departs London-Gatwick Airport at 20:15 and arrives in Casablanca Mohammed V International Airport at 23:45.

Flights between London-Gatwick Airport and Tangier operate on Mondays and Fridays, departing London-Gatwick Airport at 12:15 and arrive in Tangier Airport at 15:30. Return flights depart Tangier International Airport at 16:15 and arriving in London-Gatwick Airport at 19:25. Full schedule and promotional fares are available on Air Arabia website www.airarabia.com.

Commenting on the launch of new service, Adel A. Ali, Group Chief Executive Officer of Air Arabia said: “we are extremely pleased to start our service to London. Entering the United Kingdom will further strengthen our current flights between Morocco and Europe; and at the same time, offers customers wider choice of affordable air travel between Casablanca, Tangier and London.”

Three years after Air Arabia Maroc took off the skies, the airline continues to expand its operations and services by serving various cities from and into Morocco. Air Arabia Maroc fleet consists of the popular Airbus A320 aircraft, the world’s best selling commercial jetliner ever, offering Air Arabia Maroc passengers the best economy configuration in the market with a 32” seat pitch. The carrier offers customers comfort, reliability, and value for money air travel from and to Morocco.

http://www.aviator.aero/press_releases/8771 

1time Airline Applies for Business Liquidation

1time Airline has applied for business liquidation (02.11.2012) and that all of its operations have been grounded with immediate effect.
The business rescue practitioner has advised that there are no reasonable prospects of survival as a potential financier notified us this afternoon that they are no longer able to invest in our airline. It is therefore with the utmost regret, disappointment and heartfelt disbelief that we have to file for liquidation, which means the end of a dream and an era for all of us.
“I sincerely thank our employees who worked so hard over the years to drive 1time.s business, the travel trade who have been steadfast in their support, and our passengers who carried and maintained 1time during our most difficult and trying financial times, your loyalty is appreciated.
Although 1time ceases to exist, the airline that we.ve built up through blood, sweat, tears and undeniable passion, will live on in the hearts of our passengers and also our competitors, who know that they have lost a formidable and world-class player in the low cost market." — Blacky Komani (1time Group CEO)
1time’s Business Rescue practitioners will be in contact with creditors and future passengers to finalise all outstanding matters.

http://www.aviator.aero/press_releases/8772

China Airlines adds flights to Kagoshima, Seoul, Yangon and Auckland

For passenger convenience and to meet rising demand, China Airlines (CAL) will increase its services to Kagoshima (Japan), Seoul, Yangon and Auckland. The additional services will provide travelers with a greater selection of flights.

Starting from October 28, CAL flight CI118/ CI119 for Taipei-Kagoshima and CI162/ CI163 for Taipei-Seoul will increased from 3 to 4 services a week, taking CAL’s services for Northeast Asian destinations up to 139 flights a week. In response to continuous demand since May, CAL has also increased CI7915/ CI7916 services between Taipei-Yangon from 5 flights a week to daily flights.
At the same time, CAL’s currently 4-weekly Taipei-Sydney service (CI051/ CI052) will extend to Auckland. Combined with the existing 3-weekly Taipei-Brisbane-Auckland service (CI053/ CI053), CAL now offers daily flights between Taipei and Auckland. CAL is the only airline that offers direct flights between Taiwan and New Zealand. The increase of frequency is to meet demand from business and leisure travelers. Furthermore, it also enhances convenience for European and Asian passengers transferring from Taipei to New Zealand and Australia, strengthening Taiwan’s position as an air transport hub.

To celebrate the additional services, CAL’s Dynasty Package is offering a discount of NT$1,000 on Dynasty Packages of Kagoshima, Seoul (applicable to CI162 only) and Auckland departing between October 28, 2012, and January 15, 2013. Moreover, travelers flying on CI162 to Seoul between October 28 and November 28, 2012, will each receive a complimentary “Nolboo Military Hotpot”. (The above offers may not be used in conjunction with other promotions. For more information, please visit CAL’s website: http://dp.china-airlines.com/index/index.html.)

CAL has also partnered with several travel agencies to provide a variety of group packages. Take Yangon route for example, the “Classic Burma Yangon + Kyaikhtiyo 6-Day Tour” starting from NT$30,800 (tax included) offer travelers the chance to see the sights with ease.

http://www.aviator.aero/press_releases/8773 

Lufthansa launching new route from Munich to Vancouver

Lufthansa is expanding its long-haul services from its Munich hub and next year, for the first time, will offer a non-stop flight from Munich to Vancouver. From 16 May 2013, the new route to the largest city in British Columbia will be served daily with an Airbus A330. The service will complement Lufthansa’s daily flights from Frankfurt to this vibrant metropolis on Canada’s Pacific coast. “We are delighted to be able in future to offer our customers another destination in North America. Vancouver is an attractive destination, not only for business travellers, but also for holidaymakers,” said Thomas Klühr, member of the Lufthansa German Airlines Board, Munich & Direct Services. Next summer, Lufthansa will serve ten major cities in North America non-stop from its Munich base.

Vancouver – with a population of 2.3 million – is the largest city in Western Canada. A major centre for trade and commerce, it is also Canada’s largest seaport and is home to the headquarters of many forestry and mining companies. Numerous IT companies have settled in the surrounding region. In addition, Vancouver is a popular tourist and holiday destination and boasts a wide range of sights and attractions.

The roundtrip fare from Munich to Vancouver in Economy Class starts at 665 euros (this final price applies to tickets booked by 20 November 2012 for travel between 16 and 31 May 2013 and includes all taxes, fees and charges). Bookings for the new non-stop service can be made now via the Internet or via the Lufthansa Call Center at 01805 805 805 (calls from a German landline will be charged at €0.14/minute).

Lion Air Mendarat Darurat di Bandara Juanda

SIDOARJO--MICOM: Pesawat Lion Air nomor penerbangan LNI 785 rute Makassar-Jakarta mendarat darurat di Bandara Juanda Kabupaten Sidoarjo Jawa Timur akibat mengalami permasalahan mesin.

Pesawat yang mendarat darurat di Bandara Juanda pada Selasa (30/10) adalah pesawat Boeing 737-900ER. Pesawat dari Makassar tujuan Jakarta itu terpaksa dialihkan mendarat darurat di Juanda karena ada permasalahan pada mesin.

Sebanyak 202 penumpang terpaksa diturunkan dari pesawat. Pihak maskapai kemudian memindahkan para penumpangnya ke pesawat Lion Air lain dengan nomor penerbangan 573 untuk diterbangkan ke Jakarta.

Pesawat Lion Air yang rusak harus menjalani perbaikan di apron Bandara Juanda. Perbaikan pesawat diperkirakan membutuhkan waktu karena harus menunggu suku cadang pesawat.

Manager Lalu Lintas Penerbangan PT Angkasa Pura 1 Bandara Juanda Tulus Mujiono mengatakan, pesawat ini diperkirakan selesai menjalani perbaikan hingga Selasa (31/10) malam. "Untungnya penumpang tidak menunggu lama sudah dipindahkan ke pesawat lain," kata Tulus.

Boeing Business Jets to Offer the BBJ MAX

ORLANDO, Fla., Oct. 29, 2012 /PRNewswire/ -- Boeing (NYSE: BA) announced its intent to offer the BBJ MAX 8 and the BBJ MAX 9, furthering Boeing's dominance in the large cabin ultra-long-range business jet market. The announcement was made today at the National Business Aviation Association (NBAA) Conference in Orlando, Fla.

The BBJ MAX 8, based on the 737 MAX 8, will be the first member of the BBJ MAX family to take advantage of the efficiency of CFM International's new LEAP-1B engines and the Boeing developed Advanced Technology winglet. The new engine and Advanced Technology winglet will provide customers with a 13 percent fuel-use improvement. Together, these features will translate to a range of 6,325 nautical miles – a more than 14-percent increase over today's class-leading BBJ 2 that will be validated in final configuration and flight test.

The BBJ MAX 8 will share the same cabin size with today's BBJ 2, offering customers a 19-foot longer cabin and three times the cargo space of today's BBJ. The BBJ MAX 8 will also improve on its market leading range capability and maintain the BBJ advantages of lower cabin altitude, unmatched reliability and outstanding product support around the globe.

"We anticipate the BBJ MAX 8 will be a very strong seller as a VIP aircraft and will likely capture a larger share of the market because it's the right combination of performance, space and comfort," said Captain Steve Taylor, BBJ president. "For VIP customers, extended range and exceptional comfort are equally important. The BBJ MAX will ensure our customers get the best of both."       

Boeing also intends to develop the plan for the BBJ MAX 9 based on the 737 MAX 9. Similar performance improvements are anticipated, offering a 6,255 nm range with an even larger cabin than the BBJ MAX 8.  Plans for a BBJ MAX 7 are being studied.

Contact:
Dina Weiss
Boeing Business Jets Communications
+1 206-853-9620
dina.m.weiss@boeing.com

Photo and caption are available here: http://boeing.mediaroom.com

SOURCE Boeing

PR Newswire (http://s.tt/1rgGJ)

Sandy wipes out flights at nearly three dozen airports

Flights are expected to resume at many storm-battered airports in the Northeast and mid-Atlantic, but some of the busiest -- including the three big New York City-area airports — will likely remain quiet for another day because of Sandy.
USA TODAY's Bart Jansen reports that "11 airports on the East Coast from Norfolk to Boston canceled at least 90% of their flights Monday because of megastorm Sandy, according to FlightStats.com, which tracks flight information. But airlines were ready to resume flights late Tuesday and Wednesday, although New York's major airports aren't among them yet."
Even beyond those 11 airports, more than a dozen additional airports from Virginia to Maine to Canada had their flight schedules either mostly or completely suspended for at least half of Monday.
And if small, one-airline airports are included — such as those in Altoona, Pa., and Morgantown, W. Va. — the total number of airports where flights were essentially grounded during Sandy jumps to more than three dozen.
Regardless of their size, many of the airports hit hard by yesterday's weather will likely see only a marginal improvement to flight schedules today.
Scroll down for a snapshot on how many airports in the region fared Monday. Service at many of those airports was likely to be spotty again Tuesday.
New York City (JFK, Newark Liberty and LaGuardia airports)The airports' websites show the vast majority of flights have been canceled for Monday.
"All airports and runways are open, although (the Port Authority of New York and New Jersey) expects flooding this evening and is recommending that airlines cancel everything today but airports plan to remain open to the extent practical," FlightAware says. "United intends to resume operations tomorrow night if possible."
The following airlines have announced plans to suspend operations Monday at one of their New York-area hubs: Delta (JFK and LaGuardia), JetBlue (JFK) and United (Newark). American operates a hub at JFK, and has canceled most of its flights.
Philadelphia International
Philadelphia International Airport says all flight operations have been suspended "until further notice."
US Airways, which is by far the biggest carrier at Philadelphia and operates a major hub there, has suspended all service there today.
Washington DullesWashington Dulles' website shows that nearly every flight has been canceled. A few show up as "scheduled" on its online departure and arrivals board, but it's unclear if those flights are actually operating.
FlightAware says: "Currently open and has two departures this morning and United intends to re-open operations mid-day tomorrow if possible."
United, which is by far the biggest carrier at Dulles and operates a major hub there, has suspended all service there today.
Washington Reagan NationalVery few flights are operating, and most of those that are were scheduled to fly Monday morning. FlightAware puts Monday's cancellation tally at 95% of the airport's daily schedule.
US Airways, which operates a domestic hub at DCA, is the biggest carrier at the airport and has suspended all of its Monday service there.
Baltimore/Washington InternationalThe airport's online arrivals and departure board shows that no commercial airline flights are operating today. Officially, BWI says it "expects VERY LIMITED airline operations on Monday."
Southwest is the biggest carrier at BWI, which is one of the busiest cities in its network. The airline has suspended all of its Monday service at BWI.
Boston Logan
Some flights are operating, but most are canceled and the airport warns of significant disruptions.
Massport warns via Boston Logan's website: "Several airlines have already canceled many flights in and out of Logan today(Oct. 29), and into tomorrow morning, however others will continue to fly. In addition, we expect flight delays."
Providence T.F. Green AirportThe airport's online arrivals and departure board shows a nearly complete suspension of commercial airline service Monday. A handful of morning flights operated, and Delta (from Atlanta) and United (from Cleveland) each still show one evening flight as "on time."
Billy Bishop Toronto City Airport
All flights were suspended at Toronto's close-to-downtown airport as of 3 p.m. ET on Monday. Both airlines that serve the airport -- Porter and Air Canada (with Air Canada Express service -- use Bombardier Q400 turboprops for their flights from Billy Bishop. Both airlines suspended their flights because of concerns about winds ahead of Sandy. Flights were expected to resume sometime Tuesday. Toronto's main airport -- Pearson International -- also was affected, but only about 20% of flights (mostly to the U.S. Northeast) were canceled there.
Hartford Bradley
Hartford's Bradley airport will close at 1 p.m. ET, according to state officials.
Manchester-Boston Regional Airport (N.H.)
The airport's online arrivals and departure board shows that all but about 3 or 4 of Monday's flights have been canceled Monday.
Harrisburg (Pa.) InternationalThe airport's online arrivals and departure board shows that no commercial airline flights are operating today.
Allentown (Pa.)/Lehigh Valley InternationalThe airport says on its website: "The airport is open. However, all flights have been canceled for Monday," Oct. 29.
Wilkes-Barre/Scranton (Pa.) InternationalThe airport's online arrivals and departure board shows that most WIlkes-Barre/Scranton flights are canceled through tomorrow. Delta's flights to/from Detroit appear among the few exceptions.
Albany (N.Y.)
The airport's online arrivals and departure board shows that all but about a half-dozen of Monday's flights have been canceled Monday.
Portland (Maine)
The airport's online arrivals and departure board shows that most -- but not all -- Portland flights are canceled through tomorrow (Oct. 30).
Newburgh (N.Y.)/Stewart International
The airport's website shows that a small number of the airport's light flight schedule as operating for Monday. However, it appears as though most of those flights are actually canceled. (For example, Delta flights 3839 and 3750 show as "scheduled" on the airport's website but list as "canceled" on Delta's site.
Westchester (N.Y.) Country/White Plains
The airport's website shows that a small number of the airport's flight schedule as operating for Monday. However, it appears as though most of those flights are actually canceled. (For example, American Flight 5090 shows as "scheduled" on the airport's website but lists as "canceled" on AA's site.
Roanoke (Va.)
More than half of the airport's Monday flight schedule shows as "canceled" on Roanoke's online departure and arrivals board.
Ithaca (N.Y.) Tompkins Regional Airport
The airport's online arrivals and departure board shows that most Ithaca flights are canceled through tomorrow. Delta's flights to/from Detroit appear among the few exceptions.
Binghamton, N.Y.
The airport's online arrivals and departure board shows only cancellations for Monday.
State College (Pa.)/University Park Airport
The airport's online arrivals and departure board shows that most State College flights are canceled through tomorrow. Delta's flights to/from Detroit appear among the few exceptions.
Williamsport (Pa.)
US Airways is the only carrier at Williamsport, with all flights going to its Philadelphia hub. As long at Philadelphia's flights remain grounded, so will Willamsport's.
New Haven (Conn.) Tweed
The Federal Aviation Administration lists the airport as " closed as of Oct. 29 at 6 a.m. E.T," adding: "The date/time when the airport is expected to reopen is not known."
Atlantic City International
The Federal Aviation Administration lists the airport 'as closed as of Oct. 29 at 10:00 a.m. ET," adding : "The date/time when the airport is expected to reopen is Oct. 30 at 2 p.m. ET." Spirit is currently the only carrier at Atlantic City, and has suspended flights through early Tuesday.

Copyright 2012 USATODAY.com

Boeing Tops Wall Street Estimates, Raises Outlook

Boeing reported quarterly earnings that exceeded analysts' predictions and revenue that matched forecasts, prompting the company to raise its forecast for the full year.

The aerospace company’s shares [BA  70.05    -0.74  (-1.05%)   ] climbed more than 3 percent before the opening bell, following the news. (Click here to get real-time quotes for Boeing.)

 

Net income excluding items fell to $1.03 billion, or $1.35 per share, down from $1.10 billion, or $1.46 per share, in the year-earlier period.

It would have been higher by 18 cents per share if not for increased pension expenses that cost the company $194 million. 

Revenue rose 13 percent to $20.01 billion from $17.73 billion a year ago.

Wall Street had expected Boeing to report earnings excluding items of $1.13 a share on $20.03 billion in revenue, according to Thomson Reuters consensus estimates.

Boeing raised its earnings forecast for the year. The company now expects to earn between $4.80 and $4.95 a share. Analysts were expecting Boeing's fiscal year earnings to be about $4.73 a share, according to Thomson Reuters. 

The company also raised its revenue guidance to between $80.5 and $82 billion.

“Strong core operating performance drove increased earnings in both our major businesses, along with higher overall revenues, improved cash flow, and solid earnings per share even as pension headwinds rose,” said Boeing Chairman, President and Chief Executive Officer Jim McNerney in the earnings release.

http://www.cnbc.com/id/49525711