Airline Finance News - North America.

 
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New York (AirGuideBusiness - Airline Finance News North America) Jun 10, 2013

Air Canada Air Canada Reports May Load Factor. For the month of May, Air Canada reported a system load factor of 81.8 per cent, versus 81.7 per cent in May 2012, an increase of 0.1 percentage points. System traffic increased 2.9 per cent on a system-wide capacity increase of 2.8 per cent. Air Canada reports traffic results on a system-wide basis, including regional airlines from which Air Canada purchases capacity. "I am pleased Air Canada is reporting solid traffic results for the month of May, led by strong gains of more than six per cent in the Atlantic market. The increase in our load factor to 81.8 per cent over the prior year indicates we continue to manage our capacity effectively and that our planes are flying fuller as customers keep choosing Air Canada. I thank our employees for taking care of our customers, not only transporting them safely but also by maintaining their focus on our ongoing operational improvement initiatives that resulted in a 30 per cent year-over-year increase in On Time Performance in May," said Calin Rovinescu, President and Chief Executive Officer. May Year to Date 2013 2012 Change 2013 2012 Change Traffic (RPMs mln) 4,650 4,520 +2.9% 22,091 21,828 +1.2% Capacity (ASMs mln) 5,683 5,530 +2.8% 27,151 27,126 +0.1% Load Factor 81.8% 81.7% +0.1 pts 81.4% 80.5% +0.9 pts Canada RPMs 1,394 1,357 +2.7% 6,279 6,125 +2.5% ASMs 1,768 1,725 +2.5% 7,656 7,596 +0.8% LF 78.8% 78.7% +0.1 pts 82.0% 80.6% +1.4 pts US Transborder RPMs 648 634 +2.2% 4,017 3,961 +1.4% ASMs 826 845 -2.2% 5,088 5,082 +0.1% LF 78.5% 75.0% +3.5 pts 79.0% 77.9% +1.1 pts Atlantic RPMs 1,295 1,219 +6.2% 4,772 4,670 +2.2% ASMs 1,534 1,450 +5.8% 6,051 6,015 +0.6% LF 84.4% 84.1% +0.3 pts 78.9% 77.6% +1.3 pts Pacific RPMs 1,009 1,014 -0.5% 4,655 4,523 +2.9% ASMs 1,175 1,137 +3.3% 5,462 5,281 +3.4% LF 85.9% 89.2% 3.3 pts 85.2% 85.6% 0.4 pts Latin America & Caribbean* RPMs 304 296 +2.7% 2,368 2,549 -7.1% ASMs 380 373 +1.9% 2,894 3,152 -8.2% LF 80.0% 79.4% +0.6 pts 81.8% 80.9% +0.9 pts * Australia has been reclassified to "Pacific" from "Latin America, Caribbean & Other." Air Canada is Canada's largest domestic and international airline serving more than 175 destinations on five continents. Canada's flag carrier is the 15th largest commercial airline in the world and in 2012 served close to 35 million customers. Air Canada provides scheduled passenger service directly to 59 Canadian cities, 53 destinations in the United States and 67 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,329 destinations in 194 countries. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax that ranked Air Canada in a worldwide survey of more than 18 million airline passengers as Best International Airline in North America in 2012 for the third consecutive year. For more information, please visit: www.aircanada.com. Jun 6, 2013

Airbus, Boeing Airbus, Boeing battle over long-haul jets heats up. The battle between Airbus and Boeing over their next-generation of long-haul jets is heating up, with a string of major airlines flagging plans on Monday to place multi-billion dollar orders. Germany's Lufthansa, Japan Airlines and Malaysia Airlines were among carriers at the International Air Transport Association's (IATA) annual general meeting to say they were sizing up Airbus's new A350 widebody jets and Boeing's rival 787 Dreamliner and revamped 777 models. Airbus and Boeing compete for the lion's share of a jet market estimated at $100 billion a year. While recent years have seen them battling over smaller Airbus A320 and Boeing 737 aircraft, interest in larger fuel-efficient planes is on the rise, suggesting airlines are betting on an upturn in the global economy and therefore their premium and long-haul markets. IATA, the airline trade body, on Monday hiked its 2013 industry profit forecast by 20 percent to $12.7 billion, encouraged by cost cutting and lower oil prices. Airline executives at the IATA meeting in Cape Town, South Africa, said the stage was set for a slew of orders at the Paris Airshow later this month, and a sustained campaign by Europe's Airbus and U.S. rival Boeing to win more customers. The executives told Reuters they had been receiving briefings on Boeing's proposed 787-10X and the 777X, the latest variants of both aircraft. Industry sources say the 787-10X could be launched in Paris and the 777X later this year, but caution this is dependent on delicate negotiations with potential buyers and production plans. A launch of the stretched 787-10X would imply an increase in Boeing's plans to make 10 Dreamliners a month from end-2013. Airbus, meanwhile, is pushing the A350-1000, the largest of three variants, as an alternative to the popular 777-300ER and has gained traction over the last year with several high profile buyers such as Cathay Pacific . POWER STRUGGLE Some of the bigger potential customers in coming months include Lufthansa for around 50 aircraft, Japan Airlines (JAL) for 40 jets, and Malaysia Airlines for around 30 aircraft. Others include Japan's All Nippon Airways (ANA) , Garuda Indonesia (GIAA.JK), and Ethiopian Airlines (ETHA.UL). All are keen to assess both Airbus and Boeing aircraft for their requirements, worth tens of billions of dollars at list prices. Among the most closely watched competitions are those held by ANA and JAL, which are considering orders for A350s. That could mark a seismic shift in the airline world as JAL operates only Boeing aircraft and ANA, which has Airbus A320 narrowbody aircraft, operates only Boeing jets on its medium and long-haul services. Amid tough competition, analysts say Japanese airlines could pick up the Airbus aircraft. Both airlines, however, will talk to both aircraft suppliers as they want to get the best possible deal. ANA, for example, says that it will assess the proposed 777X as well as the A350 to replace its older 777s. Strong demand for the 787s and A350s and a large backlog mean Boeing and Airbus have sold out early delivery slots. Some airlines like Garuda Indonesia are potentially getting their aircraft from leasing companies instead. "The slots are tight but we need the aircraft in the 2016-2017 timeframe," said Garuda's chief executive Emirsyah Satar. "Leasing companies can be the answer for us as they can supply the aircraft when we need them." (Editing by Mark Potter) Jun 3, 2013

Alaska Airlines AlaskaOs Pilots Reach a Tentative Agreement on a New Contract. The pilots of Alaska Airlines, represented by the Airline Pilots Association IntOl, have reached a Tentative Agreement (TA) with AlaskaOs Management for a new, five-year contract. The pilotsO elected leadership voted unanimously to send the TA to a vote of the membership after determining the agreement met the bargaining goals of improving wages, job security and work rules and protecting retirement and insurance benefits. The next step is for Alaska AirlinesO pilots to vote on whether to accept the TA as a new Collective Bargaining Agreement. The UnionOs leadership is unanimously recommending that the contract be ratified. AlaskaOs pilots have been in negotiations for a new contract since last summer, and the current contract became amendable on April 1. OIt is common for airline negotiations to last for years beyond the contract amendable date. The fact that we were able to reach an agreement so close to our amendable date is indicative of the commitment of both parties to reaching an agreement that recognizes the role the pilots play in the success of Alaska Airlines, and that allows Alaska Airlines to continue to prosper,O said MEC Chairman Capt. Chris Notaro.

Founded in 1931, ALPA is the worldOs largest pilots union, representing more than 50,000 pilots at 33 airlines in the United States and Canada. Jun 6, 2013

Alaska Airlines Alaska Air Group to Webcast Presentation at the Cowen Securities Sixth Annual Global Transportation Conference. Alaska Air Group Inc. (ALK), the parent company of Alaska Airlines Inc. and Horizon Air Industries Inc., will webcast a presentation by Brandon Pedersen, Alaska's vice president, finance and chief financial officer, at the Cowen Securities Sixth Annual Global Transportation Conference on Tuesday, June 11, 2013, in New York City. The webcast will be presented live at 9:45 a.m. Eastern time. To participate, listeners should access Alaska Airlines' "Investor Information" page at www.alaskaair.com/investors several minutes prior to the scheduled start time to allow sufficient time to register. For those unable to listen to the live webcast, a replay will be available at www.alaskaair.com/investors until Sept 18, 2013. Alaska Airlines, a subsidiary of Alaska Air Group (ALK), together with its partner regional airlines, serves 95 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. Alaska Airlines has ranked "Highest in Customer Satisfaction Among Traditional Network Carriers" in the J.D. Power and Associates North America Airline Satisfaction StudySM for six consecutive years from 2008 to 2013. For reservations, visit www.alaskaair.com. For more news and information, visit the Alaska Airlines Newsroom at www.alaskaair.com/newsroom. Jun 5, 2013

Alaska Airlines Alaska Air Group Reports May Operational Results. Alaska Air Group Inc. (ALK) today reported May and year-to-date operational results for its subsidiaries, Alaska Airlines and Horizon Air, and on a combined basis. Detailed information is provided below. ALASKA AIRLINES - MAINLINE Alaska reported a 6.7 percent increase in traffic on a 7.3 percent increase in capacity compared to May 2012. This resulted in a 0.4 point decrease in load...

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