Thursday, May 23, 2013

Gulfstream G-II's this past week

 
G-II (c/n 98) N44YS operated by Frys Electronics Inc. climbs from Rwy 19R at John Wayne Orange County Airport (SNA/KSNA) on May 18, 2013.
 
 
G-IIB (c/n 257) N1159B operated by Jet Direct LLC arrives at Long Beach Airport (LGB/KLGB) from Honolulu International Airport (HNL/PHNL) on May 19, 2013.
 
(Photos by Michael Carter)

Southwest Airlines stock, is it a good value?

With shares of Southwest Airlines (NYSE:LUV) trading around $14, is LUV an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Southwest Airlines is a passenger airline which provides scheduled air transportation in the United States. Consumers and companies across the nation are now looking to travel at an increasing rates. Since air travel is quicker and is becoming less expensive, it is becoming a common transportation method for many. As costs decrease and flights become more efficient, look for business and retail customers to fly at rising rates. Southwest Airlines stands to see soaring profits as consumers and businesses look to travel more than ever.

T = Technicals on the Stock Chart are Strong

Southwest Airlines stock has seen a consistent downtrend extending back to the early 2000s. The stock has made an explosive move this year that has taken it to the top end of its multi-year downtrend. Analyzing the price trend and its strength can be done using key simple moving averages. 

What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Southwest Airlines is trading above its rising key averages which signal neutral to bullish price action in the near-term.

LUV
(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Southwest Airlines options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)
30-Day IV Percentile
90-Day IV Percentile
Southwest Airlines Options
27.34%
56%
53%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew
Call IV Skew
June Options
Flat
Average
July Options
Flat
Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Southwest Airlines’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Southwest Airlines look like and more importantly, how did the markets like these numbers?

2013 Q1
2012 Q4
2012 Q3
2012 Q2
Earnings Growth (Y-O-Y)
-38.46%
-46.21%
111.11%
42.86%
Revenue Growth (Y-O-Y)
2.33%
1.58%
-0.05%
11.61%
Earnings Reaction
0%
0.79%
0.33%
-2.86%

Southwest Airlines has seen mixed earnings and mostly increasing revenue figures over the last four quarters. From these figures, the markets have been satisfied with Southwest Airlines’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Southwest Airlines stock done relative to its peers, Delta Air Lines (NYSE:DAL), US Airways (NYSE:LCC), JetBlue Airways (NASDAQ:JBLU), and sector?

Southwest Airlines
Delta Air Lines
US Airways
JetBlue
Sector
Year-to-Date Return
39.65%
54.17%
35.78%
11.19%
28.46%

Southwest Airlines has been a relative performance leader, year-to-date.

Conclusion

Southwest Airlines provides air travel services to consumers and companies across the nation. The stock is seeing an explosive move that has taken it to a decisive price level. Over the last four quarters, earnings have been mixed while revenues have increased which have satisfied investors. Relative to its peers and sector, Southwest Airlines has been a performance leader, year-to-date. Look for Southwest Airlines to OUTPERFORM.

(Victor Mora - Wall Street Cheat Sheet)

Flybe plans to sell London Gatwick slots to EasyJet

UK regional carrier Flybe has confirmed plans to sell its entire London Gatwick slot portfolio to easyJet for £20 million ($30 million). It has also sold two Bombardier Q400s and is deferring delivery of 16 Embraer E-175s until 2017-19.
                                                                      
Giving an update on its “Delivery and Future Direction” turnaround plan, Flybe said it has reached a “conditional agreement” to sell 25 pairs of Gatwick slots to easyJet for £20 million. EasyJet confirmed the deal, saying it will use the slots to add new routes and boost frequencies from Gatwick.

“Under the agreement with easyJet, Flybe will continue to operate all of the slots until March 2014, during which time there will be no changes to flights, frequencies or timings to or from London Gatwick. Flybe would then intend to exit its seven routes operated to and from the London Gatwick market,” Flybe said in a statement.

Flybe flew 550,000 passengers from Gatwick during the 2012-13 financial year, but it said price increases and “penalistic levels” of air passenger duty have made its Gatwick operations “unsustainable in the long-term.” The Gatwick routes, which will be axed from March 29, 2014, comprise Belfast City, Guernsey, Inverness, the Isle of Man, Jersey, Newcastle and Newquay.

EasyJet will pay Flybe the £20 million in three tranches: £7.5 million when Flybe’s shareholders agree to the sale, £10 million in November 2013 after the summer slots exchange and £2.5 million in June 2014 when the winter slots are exchanged. Flybe said proceeds from the deal, which is expected to complete in July 2013, will be used to cut its debts, to fund its turnaround plan and for general working capital. “The funds generated by the disposal of the slots will be re-invested in the remaining 159 Flybe routes, with medium-term expansion of services planned from core target bases,” it said.

In a second “significant transaction,” Flybe has agreed to defer delivery of 16 E-175s from 2014-15 to 2017-19, cutting its winter 2013-14 pre-delivery payments by £20 million. Flybe also confirmed the sale of two Bombardier Q400s for “a modest book profit,” leaving two surplus Q400s remaining.
 
Flybe has now secured £30 million of its planned 2013-14 cost savings, exceeding its £25 million target. It has cut £16 million from its employment costs, £8 million by outsourcing non-core functions and £6 million by renegotiating its supply contracts.

The Exeter-headquartered carrier originally detailed plans to cut 300 jobs, but said in its latest update it has reduced the headcount 22% from 2,730 to 2,140—or 590 positions.

A Flybe spokesman told ATW this figure includes 290 redundancies—of which only 43 were compulsory—and the outsourcing of about 300 call center, check-in and line maintenance positions. Flybe and pilots’ union BALPA have also agreed in principle to a 5% pay cut in return for extra time off.

Under a second “Making Flybe Fit to Compete” phase, Flybe is targeting additional annual savings of £25 million. It plans to cut a further 80 positions through voluntary redundancies to slash a further £6 million from its staff costs in 2013-14 and £9 million in 2014-15. Further procurement savings will also be rolled out, saving £4 million in 2013-14 and £10 million in 2014-15.

(Victoria Moores - ATWOnline News)

Lion Air still planning Thai subsidiary launch

Indonesia’s Lion Air plans to base up to six Boeing 737-800s with its new Thai subsidiary, which will be based at Bangkok's Don Mueang Airport, according to a report in the Bangkok Post.

Thai CAA director general Woradej Harnprasert confirmed to the newspaper that Lion Air is setting up the venture, although it has not yet applied for an air operator’s certificate.

The report also stated Lion Air has started recruiting pilots, cabin and ground staff for the new carrier, which will need to be a set up as a joint venture in partnership with local investors.

Lion Air recently launched new Malaysian subsidiary Malindo Air, which performed its first flight March 22.

The Indonesian carrier ordered 234 Airbus family aircraft in March.

(ATWOnline News)

Wednesday, May 22, 2013

777X exceeds expectations

Boeing Co Chief Executive Jim McNerney said on Wednesday customer interest in the 777X wide-body airplane is "high and still growing," and he expects to formally launch the aircraft program later this year.

The company began offering the next-generation plane to customers May 2.

Ray Conner, who heads the company's commercial airplane division, said he had not given up on possible sales of the 777X mini-jumbo plane to British Airways, despite the airline's $6 billion order for 18 of Airbus' new A350-1000 jets in April.

"That game's not over yet," Conner told analysts at a Boeing investor conference. "Our intention is to win it."

Conner said British Airways had shown continued "very, very big interest" in the 777X, given the large number of 747s it currently operates.

Speaking at the conference, McNerney also said the 787-9X, a stretch version of the 787 Dreamliner, remains on track for a first flight this year.

(Reuters)

The best and worst of U.S. Airlines

If you’re tired of airline flights that leave you too frazzled to enjoy your trip, we have a new recommendation for you. Virgin America, a newcomer to our Ratings, got a clear thumbs-up from readers in our latest survey, with some of the highest scores we’ve seen in years.

At the other end of the runway was Spirit Airlines. It was at the bottom of our list, with poor scores across the board for check-in, cabin service, and more.

In an era of airlines changing, merging, and inventing new fees, getting the best deal hasn’t gotten any easier. But we’ll tell you how to search for the best fares and what you’ll pay in fees from the major carriers. We also have insights from more than 16,000 readers who told us about a total of 31,732 domestic flights in our survey, conducted in February by the Consumer Reports National Research Center.

One of the things they told us was that they really liked flying on Virgin America. “The leather seat cushions are so nice in coach, there’s no reason to fly first class,” says Janice Dunn, who answered the survey and lives in Palm Desert, Calif. The airline, which started in 2007, has recently expanded the number of cities it serves to 21. Its main hub is in San Francisco. It flies to most major American cities, as well as certain vacation destinations in Mexico. And it plans to add Anchorage, Alaska, and Austin, Texas, this spring.

Virgin America says it emphasizes “top-notch services and a host of innovative amenities.” Cabins feature mood lighting (magenta strips of lights along the sides and violet along the middle of the ceiling), Wi-Fi throughout the planes, and seatback entertainment systems that allow you to order food and beverages, watch free movies and television, play games, and listen to more than 4,000 songs. Our readers gave those cabin services and in-flight entertainment top scores.

Although Virgin America charges $25 each for the first and second checked bags, it was the only airline to get the top score for baggage handling.

Free baggage

Two other highly rated airlines, JetBlue and Southwest, receive high marks for baggage handling. But even more important, they’re the only carriers on our list that let you check one (JetBlue) or two (Southwest) bags free on domestic flights. The free bags help explain why they’re among the top airlines we rated.

Check-in was a breeze on Southwest, and readers enjoyed the staff’s onboard service. But it was dinged on in-flight entertainment, an area where Virgin America and JetBlue (which also offers programming on seatback screens) shined. Southwest offers wireless entertainment on your device. JetBlue outscored Southwest on cabin cleanliness and seating comfort; it gives all passengers a couple of extra inches of leg room compared with most other airlines.

Hawaiian Airlines received high marks for check-in ease, cabin service, and cleanliness. And readers liked the way it handled their bags. Not-so-hot: Hawaiian’s in-flight entertainment.

On the other end of the spectrum, bottom-­ranked Spirit Airlines received one of the lowest overall scores for any company we’ve ever rated. “Spirit is the only no-frills airline left with fares that can be 90 percent less than other carriers’,” says George Hobica, founder and editor of Airfarewatchdog, which tracks airline deals. But it also charges a wide array of fees, including $10 to $19 to book a flight; $3 for a soda, a juice, or a bag of M&Ms; and $35 to $100 per carry-on bag.

Readers were also sore about Spirit’s seats; it has the tightest seating space in the industry. “I’m 6 feet 1 inch, and Spirit is the only airline I’ve flown where my knees hit the seat in front of me when it was upright, not just reclined,” says survey respondent Paul Barrett, a retired airline pilot who lives in Orinda, Calif.

Consumers told us about other airlines’ strengths and weaknesses. Passengers were very happy with Alaska’s check-in, and they liked its cabin staff and baggage handling. But they weren’t so happy with the airline’s seats and entertainment options. Delta and Frontier were awarded very good marks for check-in ease, but otherwise things were mostly middling. Low marks for seating comfort hurt Delta. Lower-­rated carriers, such as American, United, and US Airways, all received the lowest rating possible for cabin cleanliness, seating comfort, and in-flight entertainment.

Airlines’ fees are now coming in packages, whether or not you want all of the services. At American, one itinerary example put Choice Essential at $68, allowing a free flight change, one free checked bag, and early boarding. The Choice Plus bundle, for $88, would provide bonus frequent-­flyer miles, free same-day standby and flight-change options, and a “premium” beverage. Exact costs vary by itinerary. So expect more turbulence ahead given that according to our survey, unexpected fees are a leading cause of dissatisfaction with an airline.

Track down the best fare

You’ll have to shop around a bit to get a good ticket price. As you may have noticed if you’ve flown in the past year, fares are up, rising seven times in 2012 according to FareCompare, a travel-planning website. Rick Seaney, co-founder and CEO of the site, predicts that the trend will continue through 2013.

Work the Web. Almost all of the respondents (94 percent) who booked their own flights did so online. Of those respondents, 59 percent compared fees on other websites before they chose an airline. To uncover the best deal, we suggest you cast that wider net.

Check prices on third-party sites. Expedia, Kayak, and Travelocity may list identical prices for flights, but they have different electronic reservation systems and add and remove fares at different times. Be sure to check airline sites, too, because sometimes they have sales that they don’t share with third-party sites. If you don’t have to book immediately, the airlines and price-comparison sites (add Airfarewatchdog, Hotwire, and Priceline to those above) might let you set price alerts; you’ll get an e-mail or text when prices drop.

Dodge the fees. Try to travel light or fly a low-fee airline, such as JetBlue or Southwest. If you need to check a bag or pay for a carry-on, see whether there’s a discount for prepaying on the airline’s website.

Check your airline’s weight limits. For example, United charges $100 to $200 (depending on your destination) for a checked bag weighing from more than 50 pounds to less than 100. Overweight fees kick in at more than 40 pounds on Spirit.

You might avoid certain fees if you charge your travel to the airline’s credit card. The cards often carry annual fees of $40 to $100, but the perks they usually offer—priority boarding, free checked luggage, and access to airport lounges—can more than make up for the charge.

Be flexible. Shifting your travel dates by a day or two will often allow you to nab a much lower price. Tuesday, Wednesday, and Saturday are generally the cheapest days to fly, Seaney says. Check prices at 3 p.m. EST on a Tuesday, he adds; it’s when the greatest number of cheap seats are available. But bargains can appear at any time, so keep searching and set up those alerts, Hobica stresses.

Check other airports. When you use price-comparison sites, specify the city you want to depart from, not the airport. Most sites will then show you the flight options for any of that area’s airports.

Put it on hold. Thanks to regulations that went into effect last year, you can hold a reservation for 24 hours without paying for it (as long as it’s at least a week from the scheduled departure date) while you check around for a lower fare.

Airlines are feasting on fees

The airlines call them ancillary revenue. You probably call them annoying. One thing is certain—it’s getting harder to purchase an airline ticket without paying for extras. (See the table below for more details.)

Since Spirit Airlines became an “Ultra Low Cost Carrier” in 2007 and most domestic carriers followed by charging for checked bags, there has been no turning back from the nickel-and-diming.

There isn’t much good news for passengers. But when it comes to fees, the most consumer-friendly airline is Southwest, the only U.S. carrier that allows your first and second bags to be checked gratis. JetBlue allows only the first bag free; most airlines charge $25. Low-cost Southwest also stands alone in not imposing ticket-change fees. (Many airlines give 24 hours to change a flight free.) And along with Frontier, it does not charge for telephoning reservations.

But you shouldn’t automatically equate low fares with a lack of fees. Some of the biggest charges are levied by two low-cost carriers, Allegiant and Spirit. Their business models are based on à la carte pricing, with a charge for carry-on bags (in Spirit’s case, up to $100). Frontier starts charging for carry on bags when the flight is booked through a third party. Spirit even charges for booking online, and it imposes an “Unintended Consequences of DOT Regulations Fee.”

Do Allegiant and Spirit offer low fares? Absolutely. But obtaining a true apples-to-apples comparison among multiple airlines on your bottom-line ticket price can require a lot of time and work these days.

Hard-to-find fee info

Be warned: If you’re searching for fees on an airline’s site, it’s often a cumbersome process. Southwest and Virgin America provide easy access to complete fee information, we found. Many other carriers offer detailed online guides to fees, but they include unhelpful points such as charges of “from $4 to $99” for preferred seats. United doesn’t even provide a range of prices for two critical fees: checking your first and second bags. Charges are doled out on a flight-by-flight basis only after you enter your itinerary.

We obtained United’s fee information by contacting its media relations department, an option not available to the average passenger.

For most travelers, it’s difficult to avoid the fees in our chart, and we didn’t even include categories such as the cost of oversized or overweight luggage, additional bags, paper tickets, and for amenities and extras such as drinks, snacks, meals, larger seats, and headsets or entertainment.

Unaccompanied minors and pets also incur fees, as do many frequent-flyer-program transactions.

And to think that when we reported on airfares in 1964, we said, “Unless something is done to uncomplicate the situation, the day may soon arrive when only a computer will be able to match the traveler’s need to the most suitable flight and fare.”

How about a supercomputer?

Boeing completes first flight of 747-8I with performance package improvements

A Boeing 747-8 Intercontinental successfully completed its first test flight this week with a package of performance improvements including enhanced GE engines. This package is designed to improve the fuel efficiency of the popular jetliner.

With Boeing Flight Test and Evaluation Capt. Kirk Vining and Chief Pilot Capt. Mark Feuerstein at the controls, the airplane took off from Paine Field in Everett, Wash. at 1:30 p.m. local time and landed at Boeing Field in Seattle approximately four hours later.

"It was a great flight and the engines performed as expected," said Capt. Vining. "This is an important milestone for the flight test program."

The airplane Performance Improvement Package (PIP) includes improvements to the GEnx-2B engines and Flight Management Computer (FMC) software.

Boeing's continuous efforts to improve the 747-8 family have resulted in an accumulated 1.5 percent gain in fuel efficiency since the first airplane was delivered less than two years ago. These new improvements will give operators an airplane that is an additional 1.8 percent more efficient.

"These improvements are a part of our commitment to continually improve our great airplanes for our customers," said Eric Lindblad, vice president and general manager of the 747 program. "Improving fuel efficiency by another 1.8 percent saves the airlines approximately one million dollars per year in fuel per airplane and reduces the carbon footprint."

The test program will also validate the design changes and demonstrate the operation of the horizontal tank fuel system on the passenger version of the 747-8, which was deferred from the initial deliveries. The new configuration will first deliver in early 2014 and be available for retrofit. Entry into service of the new engines and FMC software will take place in late 2013.

(Boeing Press Release)

DOT releases March airline performance report

The Aviation Consumer Protection division of the US Dept. of Transportation issued its March reports on compliance with consumer protection, including on-time performance, consumer complaints and mishandled baggage.

Hawaiian Airlines ranked highest in percentage of flights on-time, with 91% in March, down slightly from its percentage in the same month in 2012 with 92.5%. Virgin America ranked second with 87.3% March this year and 74.9% in March last year. The lowest reported on-time performance came from ExpressJet with 71.6% on-time, compared with 74.1 in March 2012.

Southwest Airlines received the fewest consumer complaints with 0.23 per 100,000 passengers in March 2013. This compares with a rate of 0.29 in March last year. Alaska had a rate of 0.24 in March; 0.32 in March 2012. The most consumer complaints were seen by Frontier Airlines with 2.78 per 100,000 passengers in March, compared with 0.97 in March 2012.

Virgin America had the best rate in mishandled baggage reports per 100,000 passengers with 0.83 in March 2013. Last year’s rate in March was 0.90. Frontier ranked second with 1.92 reports in March 2013; 2.05 in March 2012. The most reports were made against American Eagle with a rate of 5.15, compared with 5.95 in March 2012.

The DOT reports include AirTran, Alaska, American, American Eagle, Delta, ExpressJet, Frontier, Hawaiian, JetBlue, Mesa, Pinnacle, Southwest, SkyWest, United, US Airways and Virgin America.

(Kathryn M. Young - ATWOnline News)

Etihad Airways getting Air Berlin crew transfers as the German carrier reduces staff

Air Berlin, which is cutting 900 jobs as part of its Turbine savings program, will transfer more than 50 pilots to Abu Dhabi-based Etihad Airways as the German carrier reduces its fleet and its majority shareholder prepares for international expansion.
                                                                      
Air Berlin CEO Wolfgang Prock-Schauer, told ATW earlier that Etihad had temporary employment for about 100 positions. “This includes pilots, flight attendants and technicians,” he said.

The transfer of Air Berlin pilots started in April, Etihad Airways said in a statement. Six Boeing 737 first officers moved to Abu Dhabi and started type rating for the Boeing 777.

In the next several months, Airbus A320 first officers and captains, as well as A330 first officers will also begin 777 type rating.

Etihad Airways employs more than 1,400 pilots and expects to need 1,000 additional pilots by 2020.

Since December 2011, Etihad Airways and Air Berlin have worked together on a range of other synergies including pilot training, common maintenance, alignment of Boeing 787 orders, integration of their frequent flyer programs and the sharing of infrastructure.

In November, Etihad will more than double the size of its flight training center in Abu Dhabi, with its new extended facility housing flight simulators for Airbus A320, A330/A340, A350, A380, Boeing 777 and 787 aircraft.

(Kurt Hofmann - ATWONline News)

Embraer wins large ERJ-175 order from SkyWest

SkyWest Inc., the Utah-based parent of regionals SkyWest Airlines and ExpressJet, has signed a firm order for 40 Embraer E-175 aircraft, which will be operated under a capacity purchase agreement (CPA) with United Airlines.

According to Embraer, another 60 firm orders are reconfirmable aircraft, which are subject to SkyWest being awarded CPA agreement contracts with major US airline partners. The agreement also includes options for another 100 E-175s, taking the total order potential up to 200 aircraft.
                                                                      
If all 100 firm orders are exercised, the order has an estimated value of $4.1 billion at current list prices. SkyWest plans to configure the aircraft in a dual-class 76-seat layout. Delivery is scheduled beginning in the second quarter of 2014.

At the end of April, United Airlines inked an order for 30 firm E-175s, plus 40 options, to operate under its United Express brand.

(Linda Blachly - ATWOnline News)

Friday, May 17, 2013

KLM getting two more 777-300/ERs

KLM 777-306(ER) (35979/807) PH-BVD
(Photo by James Mepsted)

KLM is to take delivery of two Boeing 777-300ERs in spring 2015, one from Boeing and another from Air Lease, taking its total 777-300ER fleet to 10 aircraft.

It has also extended leases on three 737-800s and one 777-200ER that are already operating in KLM’s fleet.

A KLM spokesman confirmed that the Dutch carrier has ordered one aircraft direct with Boeing. This is due to arrive in April 2015.

The Air Lease aircraft, also a new 777-300ER, will be delivered in March 2015 and will remain with KLM on long-term lease.

The spokesman said that the two additions will take KLM to a total of 10 777-300ERs.

(Victoria Moores - ATWOnline News)

Southwest Airlines source for 10 used 737-700s is WestJet

Southwest Airlines Co. is delaying delivery of new airplanes and filling the gap with used planes to reduce spending over the next five years.

It’s also raising its dividend and could soon buy back more of its own shares.

Southwest said Wednesday that it will delay 30 firm orders for Boeing 737 jets, which CEO Gary Kelly said would cut capital spending through 2018 by more than $500-million (U.S.). The airline is also giving up or delaying options for additional planes.

Meanwhile Southwest will buy 10 used 737s from Canada’s WestJet over the next two years. They average about 11 or 12 years old and should bide Southwest over until Boeing begins producing a new, more fuel-efficient 737 model called the Max late in this decade, Southwest officials said.

The airline isn’t disclosing financial details of the Boeing and WestJet deals, which were announced at the Dallas company’s annual meeting.

Southwest is raising the quarterly dividend due on June 26 to 4 cents per share, up from a penny per share. It’s also boosting share-buyback authority to $1.5-billion from $1-billion. The company has bought $725-million in its own stock since August 2011, increasing the value of remaining shares.

Southwest is alone among major U.S. carriers in being consistently profitable for many years and having an investment-grade credit rating. It was the only major U.S. airline to offer a dividend until Delta Air Lines Inc. announced last week that it too will begin paying a dividend. Delta also increased its share-buyback program.

Other kinds of companies routinely pay dividends and buy back shares, but the lack of dividends is fitting in the airline industry, where most big operators have lost billions and gone through bankruptcy in the past decade. Delta’s dividend and the increase at Southwest are further signs that the airlines believe they’ve turned a corner.

Mergers have reduced competition among airlines, helping to prop up fares, and the carriers have raised billions from new fees.

Southwest shares rose 20 cents to $14.18 in afternoon trading. Shares of Delta, United Continental Holdings Inc. and US Airways Group Inc. were each up about 3 per cent in a broad market rally.

(David Koenig - Associated Press)

Thursday, May 16, 2013

USAF C-17A 10-0222 takes to the skies


USAF C-17A (P-222) 10-0222 "Charleston" AFB performed her first pre-delivery test flight yesterday, May 15, 2013 at Long Beach Airport (LGB/KLGB). In the above photos she is captured returning to Long Beach at 18:40 pst following the successful flight.
 
(Photos by Michael Carter)

First JetBlue A320 to wear "Sharklets" captured at Long Beach




JetBlue A320-232 (c/n 5417) N821JB "Blue Yorker" which now sports "Sharklets" passed through Long Beach Airport (LGB/KLGB) on May 14, 2013.
 
(Photos by Michael Carter)

Gulfstream G650 N722GA



Gulfstream G650 (c/n 6022) N722GA tbr N650HC performed a pre-delivery test on May 14, 2013. In the above photos we see the aircraft returning to Long Beach Airport (LGB/KLGB).
 
(Photos by Michael Carter)

Gulfstream G-IV N598GS

Gulfstream G-IV (c/n 1258) N598GS operated by Centralize Leasing, rolls for take-off on Rwy 30 at Long Beach Airport (LGB/KLGB) on May 14, 2013. 
 
(Photo by Michael Carter)

Kuwait Airways finalizes Airbus A320neo order

Kuwait Airways chairman Sami al-Nasef said the airline has “signed a letter of acceptance with Airbus” to purchase 25 aircraft, according to reports from Kuwait City.
                                                                      
(Image Airbus)

Al-Nasef told a news conference that Kuwait Airways has agreed to buy 15 A320neo aircraft and 10 A350-900s and has secured options for five more of each, Agence France-Presse reported. He said the carrier will take delivery of its first A320neo in 2019 while the A350s will start arriving in 2020.

Kuwait Airways has an aging fleet, comprising five A300-600s, three A310-300s, three A320-200s, four A340-300s and two Boeing 777-200s.

(Aaron Karp - ATWOnline News)

Airbus rolls-out painted A350 in house livery

**I know this has been out for a few days but thought I would catch-up and add the story when I saw this photo as I didn't really like the photo that was released with the Airbus press release this past Monday.
 
(Michael Carter) 
 
(Photo Airbus)

Airbus has unveiled the first A350-900 flight-test prototype in its full paint scheme, as the airframer makes final preparations for the twinjet's maiden sortie.

The aircraft has been fitted with its Rolls-Royce Trent XWB engines and the painting process marks one of the final stages before the flight-test regime begins.

Customers have ordered 414 of the -900 variant, the first of the three-member family to be developed.

Having been painted the aircraft will undergo a series of ground tests and be transferred to the flight-test division for ground runs.

The airframer has yet to clarify when the prototype, MSN1, will carry out its first flight.

Airbus has secured orders for 616 A350s including 110 of the largest variant, the -1000, and 92 of the smaller -800.

(David Kaminski-Morrow - Flightglobal News)

Southwest Airlines becomes 737 MAX 7 launch customer

(Photo Boeing)

Southwest Airlines has converted 30 existing Boeing 737NG firm orders to 30 firm orders for the 737 MAX 7, becoming the launch customer for the MAX 7, the smallest version of the re-engined Boeing narrowbody family.
                                                                      
Southwest will take delivery of the 30 MAX 7 aircraft from 2019 through 2021; it had been planning to take delivery of the 737NGs in 2017 and 2018. The MAX 7 is 33.6 m (110 ft. 4 in.) in length and is designed to seat about 126 passengers. The 39.5 m 737 MAX 8 is designed to seat around 162 passengers while the 42.1 m MAX 9 is designed to seat about 180 passengers.

Southwest was the first airline to place a firm order for the 737 MAX when it ordered 150 in 2011. The Dallas-based low-cost carrier now has 180 737 MAX aircraft and 137 737NGs on firm order, which includes five 737-800 options turned into firm orders.

In addition, five Southwest 737-700 firm orders have been converted to 737-800s for delivery in 2014. Ten options to purchase 737NGs in 2014 and 2015 were relinquished, Southwest said.

Also, Southwest agreed to purchase 10 pre-owned 737-700s for delivery in 2014 and 2015, and 12 Southwest 737NG options in 2014 and 2015 and 29 737NG options in 2017 and 2018 were converted to 737 MAX options and deferred beyond 2024, according to the airline.

Southwest chairman, president and CEO Gary Kelly said in a statement that the “737 MAX 7 builds on the strengths of today’s next-generation 737-700, incorporating the latest CFM International LEAP-1B engines, and is expected to reduce fuel burn and CO2 emissions by an additional 12% over today’s most fuel-efficient single-aisle airplane.”

(Aaron Karp - ATWOnline News)

Jackie Chan shows off his Embraer Legacy 650

(Photo by Embraer)
 
Late last year, Brazilian business jet maker Embraer announced a marketing coup for the China market: They brought Jackie Chan on-board as both an aircraft owner and as their brand ambassador.
 
Jackie’s new aircraft is an Embraer Embraer Legacy 650 that is painted with a red and yellow dragon logo along with his distinctive personal logo on the tail. That alone made it an important display centrepiece at the Singapore Airshow for executive aircraft maker Embraer.
 
Jackie’s Legacy 650 has a range of 3,900 nautical miles (7,223 kilometres) – meaning he can fly non-stop from Beijing to Dubai or from Hong Kong to Australia. The aircraft is also divided into three distinct cabin zones for him to work, play and rest. Thanks to high tech features such as wi-fi, busy business or movie moguls can get straight to work once aboard.
 
It should be mentioned that Embraer Embraer only entered the executive aviation market in 2001 but today it accounts for some 19 percent of total global executive jet deliveries thanks in part to offering a full line of executive jets from entry level aircraft for businessmen and movie stars to ultra-large aircraft for those who, like Jackie, have achieved mogul status.
 
I had the opportunity to fly on an Legacy 650 last year (not Jackie’s but the same model and configuration). We went from Farnborough up to Dundee for lunch at the famous Gleneagles hotel and golf club.
 
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The cabin is very comfortable and has lots of space to stand up and move around. The seats recline and even lie flat to make beds for longer trips. It’s a very nice place to be.
 
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Fold out entertainment systems and tables mean that you can get some work done. The seats slide forward and back on rails so you can tuck yourself neatly under the tables. It took me a while to figure this out until the flight attendant showed me. At first, I just assumed business jet owners had longer arms than me!
 
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The larger four-seat table is good for meetings or relaxing meals.
 
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When I was kid, captains often invited passengers up to the cockpit but these days this view is much rarer and more coveted. The cockpit itself boasts all the latest systems.
 
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We taxied past the RAF’s famous Red Arrows display team on our way out of Farnborough. Since everyone on board was an aviation enthusiast this was a nice treat. They even park neatly.
 
 
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Dundee Airport has a (very) short runway and the 650 showed its flexibility by getting in and out without any stress.
 
(Matthew Stibbe - Forbes)