Airplane maker ATR signs $536M, 20-aircraft deal with Iran

European airplane manufacturer ATR said Thursday it sealed a $536-million sale with Iran Air for at least 20 aircraft, the latest aviation firm to strike a deal following Iran's nuclear accord with world powers.

ATR spokesman David Vargas confirmed the finalized deal for the 20 ATR 72-600s, a twin-propeller aircraft, and said Iran Air had an option to purchase another 20.

"They will definitely help Iran Air to modernize and develop regional connectivity across the country," Vargas told The Associated Press.

Home to 80 million people, Iran represents one of the last untapped aviation markets in the world. However, Western analysts are skeptical that there is demand for so many jets or available financing for deals worth billions of dollars.

Vargas declined to offer a value for the deal with Iran Air. The confirmed portion of the deal is worth $536 million at list prices, though buyers typically negotiate discounts on bulk orders. Iranian state TV described the deal as being worth about $400 million.

The deal also already has the approval of the U.S. Treasury, Vargas said. The Treasury must sign off on aircraft deals when at least 10 percent of the airplanes' components are of American origin. The Treasury could not be immediately reached for comment.

Farhad Parvaresh, the CEO of Iran Air, told the state-run IRNA news agency that the French-Italian company will deliver nine ATR 72-600s in 2017 and the rest in 2018. He said four of the aircraft will arrive within a month after signing the contract.

In February 2016, ATR signed an initial agreement to explore selling the aircraft to Iran Air. ATR is the Toulouse, France-based partnership of Airbus and Italy's Leonardo S.p.A., which specializes in regional turboprop aircraft of 90 seats or less.

The ATR deal comes on the back of the nuclear agreement Iran struck with world powers, which saw Iran agree to limit its enrichment of uranium in exchange for the lifting of economic sanctions.

That deal allowed airplane manufacturers to rush into the Iranian market.

Boeing has already made a $16.6 billion sale already to Iran Air, while its European rival Airbus signed one estimated to be worth some 22.8 billion euros ($25 billion). The Treasury has signed off on both those deals.

Chicago-based Boeing also signed a $3 billion deal earlier this month to sell 30 737 MAX aircraft to Iran's Aseman Airlines, a firm owned by Iran's civil service pension foundation. The Boeing sales represent the first major deals for an American company in Iran since the 1979 Islamic Revolution and U.S. Embassy takeover.

U.S. politicians have expressed concern about the airplane sales to Iran. President Donald Trump remains skeptical of the atomic accord overall and has threatened to renegotiate it, without offering specifics.

(Nasser Karimi and Jon Gambrell - Associated Press)

AirBridgeCargo expands Asian network with call in fast growing Taipei

(AirBridgeCargo)

AirBridgeCargo Airlines (ABC) has continued the expansion of its operations in Asia with the addition of Taipei to its list of destinations.

ABC will fly to Taipei twice per week utilizing a Boeing 747F aircraft. The new service, which was launched on April 8, will operate from Moscow Sheremetyevo every Wednesday and Saturday, returning via Hanoi in Vietnam.

Sergey Lazarev, general director ABC, said: “Taipei is a mature and stable air cargo market generating volumes close to 500,000 tonnes per annum so it is a major origin, destination and transit point for freight.

"This includes exports of electronic components, machinery, textiles as well as a diverse range of import cargoes.

"We know from listening to customers in Taipei and those in other countries with traffic to and from Taiwan that there is demand for the quality of service and network opportunities AirBridgeCargo is able to offer.

"This is why we are supporting our customers once again with our services and additional capacity in a prime market where they want to work with us.”

ABC said the addition of Taipei means it has doubled its route network for customers in the region in the last two years.

ABC also offers 747F services to and from Tokyo, Seoul, Singapore, Hanoi, Phnom Penh, Hong Kong and the Chinese cities of Shanghai, Beijing, Chengdu, Chongqing and Zhengzhou.

The expansion of operations has helped the airline boost volumes from the Asia Pacific region by 25% year on year to more than 265,000 tonnes and said it is "confident of further growth this year".

(AirCargoNews)

IAG Cargo freighter flight caters for pharma demand

(Cygnus Air)

IAG Cargo has launched a new dedicated freighter service between its Madrid hub and Basel to cater for the pharma market.

The cargo group, which offers space on British Airways, Iberia and Aer Lingus flights, said that the weekly scheduled service will be operated by Spanish airline Cygnus Air using one of its two B757-200F aircraft.

The new service, which flies on Sundays, has been on trial since January and IAG Cargo said it had proved popular with the pharma sector as it offers connections into the group’s Latin America network.

The group added that the service will be “a crucial support to Switzerland’s booming pharmaceutical sector, which makes up more than a third of the country’s export volume”.

It said that 74% of the goods flown out of Switzerland were on its Constant Climate pharma product.

IAG Cargo commercial director David Shepherd said: “IAG Cargo has a flexible network investment strategy where we respond as quickly as possible to customer demand.

“Our latest freighter service underlines our commitment to giving our customers the capacity and routes they need, and further highlights the strength of our industry-leading pharmaceuticals proposition.”

IAG Cargo axed an agreement with Global Supply Systems under which it leased three B747-8Fs on long-haul routes in January 2014, citing overcapacity on the routes the aircraft operated.

Since then, it has been taking space on freighters operated by others. It has scheduled deals with DHL, one of which is also dedicated, Qatar Airways Cargo and Korean Air and also buys tactically – meaning as and when it needs to – from operators out of Latin America, feeding into places like Bridgetown, Barbados and Miami.

Buying tactically allows IAG Cargo to expand and contract capacity depending on requirements.

The B757-200F aircraft used on the new service offers a capacity of 29 tonnes per flight and expands capacity on IAG Cargo’s short-haul freighter network – offered through its partnerships – by 6%.

Last week, IAG Cargo announced a new chief executive, with Lynne Embleton replacing Drew Crawley who had been in the role for just over a year.

(AirCargoNews)

Let Richard Branson kill United Airlines

I found this to be a very interesting read and, I hope you enjoy it as much as I did since I do agree with each point the author brought up!

Michael Carter
Editor and Chief
Aero Pacific Flightlines

Most semi-frequent travelers have their own private no-fly list—that one airline whose aggressive incompetence and casual cruelty leads them to say “never again.” Even before introducing the term “re-accommodate” into the National Registry of Corporate Euphemisms, United has been that no-go airline for me, the result of a long series of outrages beginning with the near-ruination of George Gershwin’s “Rhapsody in Blue.”

And yet, after grim Expedia searches, I continue to sporadically fly those unfriendly skies, because unlike evil rental car companies (cough *AVIS* cough), air carriers have colluded with government to shield themselves from the consumer-friendly gales of competition. Protectionist legislators have basically made it impossible for us to quit United.

Perhaps you’ve seen that graphic making the rounds, showing how mergers over the last decade have consolidated the largest 11 domestic airlines into a profitable, customer-abusing Big Five? The accompanying BuzzFeed headline is a true enough conclusion: “Airlines Treat You Badly Because They Can.” But like a lot of the how-we-got-here coverage this week, it misses one elephant in the room.

Foreign companies and individuals—think Richard Branson and Virgin Atlantic Airways—are forbidden by U.S. law from owning more than 25% of a domestic airline. That’s why Virgin America could be sold last year to Alaska Airlines over the express wishes of Virgin’s famous founder: He just didn’t have enough votes.

The differently headquartered are banned outright from servicing routes between two American cities, a practice with the sinister-sounding name of cabotage. And carriers from Singapore to the Gulf States are not only barred from competition, but subject to sneering taunts by American legacies from behind the protectionist firewall, such as when United CEO Oscar Munoz this March said that companies including the well-regarded Emirates “aren’t real airlines.”

What on Earth justifies such pre-Trump xenophobic mercantilism in our increasingly globalized world? According to North America’s Air Line Pilots Assn.: “These regulations ensure the national security of our country and the integrity of our airline industry.” Or translated into honest-ese, “These regulations ensure the job security of unionized U.S. nationals and the continued existence of poorly run U.S. airlines.”

The nexus between neglected infrastructure and national security is one of the most reliably insane areas of public policy. Recall the coast-to-coast freakout in 2006 when Dubai Ports World attempted to buy management rights to a half-dozen major U.S. ports. Or, for those of us with longer memories, the shameful panic here in L.A. a quarter century ago when the county awarded a subway-car contract to a company from (shudder) Japan.

In fact, one of the biggest worries among free-market economists about President Trump’s gestating $1-trillion infrastructure bill is that it will contain “buy American, hire American” provisions that would discourage needed investments from foreign companies and financial institutions.

The irony of America’s lagging air travel quality—including the abject lousiness of its airports, which President Trump is absolutely correct about—is that we once led the world in airline innovation. When the domestic industry was deregulated in the mid-1970s, thanks to then-Sen. Ted Kennedy, future Supreme Court Justice Stephen Breyer, liberal economist Alfred Kahn, and President Carter (yes, you read all that right), our trading partners scrambled to become more like us. Then they surpassed us.

It took a couple of decades, but eventually the European Union dismantled subsidies for national carriers, privatized a number of airports (something unheard of here), and let literally hundreds of low-cost airlines run riot. It even allowed some foreign-airline cabotage, on a case-by-case basis. The result is those annoying Instagram pics from friends who live in London, showing off that people in Europe fly everywhere for dirt cheap.

Yes, airlines on the continent come and go faster than New York restaurants. But that’s precisely the point: With real competition comes real failure, hopefully followed by bankruptcy and even liquidation, instead of American-style too-big-to-fail bailouts. How many customers must United pummel before they can Gershwin us no more?

As Marc Scribner of the Competitive Enterprise Institute put it this week: “If American consumers wish to enjoy improved service quality in air travel, they should demand that Congress repeal 90 years of anti-competitive federal law. Less regulation of air travel, not more, is the solution.”

This will be a lonely sentiment in a week when headline-chasers from Republican New Jersey Gov. Chris Christie to Democratic Maryland Sen. Chris Van Hollen elbow each other out with interventionist solutions. But if we really want to punish United Airlines—and Lord, how I’ve dreamed of this day—then letting Richard Branson and his cohort come and compete on American soil will do more to extract justice than a hundred regulators ever could.
 

(Matt Welch - Los Angeles Times)

How FedEx Corporation Makes Most of Its Money

An analysis of operating income by segment reveals much about the underlying earnings trends at the company and what to expect in the future.

How does FedEx Corporation make most of its money? That's a question worth investigating since the company's chief moneymaking segment has changed hands a few times in the past decade. Moreover, a fuller understanding of how the company operates will help investors appreciate what's happening with the investment propositions at FedEx and its main rival, United Parcel Service, Inc. Let's take a closer look.
Express just barely takes the title

A breakout of FedEx's segment operating income shows that, for the first time since 2010, the express segment was the most profitable in 2016. However, ground revenue and profit continue to rise in seemingly inexorable fashion since the last recession. In a sense, you can think of this chart in two periods -- pre- and post-recession:

 

Data source: FedEx Corporation accounts. Chart by author. In millions of U.S. dollars.

In the pre-recession period, the express segment was clearly the key income generator, but since the 2008-2009 recession, three key underlying trends have changed trading significantly at FedEx.
Post-recession blues

First, post-recession, the market backdrop changed with global trade failing to outgrow GDP growth in the past as countries increasingly adopted mercantilist trade policies. Indeed, the World Trade Organization has warned of increasing protectionism in the global economy.

In addition, customers at UPS and FedEx started preferring cheaper and less time-sensitive deliveries. The result of this trend is slowing growth in the more expensive delivery options in express -- total composite package yield in express is currently around $20, compared with around $8 for ground.

The end result was a relative shift in profitability toward the ground segment and away from express.
E-commerce to the rescue

Second, strong e-commerce growth has led to a marked improvement in revenue and profit for the ground operations at FedEx and UPS:

U.S. change in e-commerce sales data by YCharts

However, e-commerce doesn't come free. UPS and FedEx have both had issues servicing e-commerce deliveries during peak season. Consequently, capital expenditure plans have been increased and ground margin has come under pressure, particularly at UPS.

These factors show up in operating margin movements. FedEx's ground segment margin has declined in recent years:

 

 

Data source: FedEx Corporation accounts. Chart by author

In addition, return on assets, measured here by segment operating income divided by segment assets, has declined in recent years for the ground segment as the ground network has been expanded.

 

 

Data source: FedEx Corporation accounts. Chart by author

All told, ground income grew strongly post-recession, but it's started to slow in recent years because of margin pressure.
Express profit improvement plan

Third, the express segment's productivity has improved since 2013, largely a consequence of the company's profit improvement plan. In late 2012, management announced a three-year plan to cut express costs by some $1.7 billion. The plan involved actions such as modernizing the air fleet, making network efficiencies, and undertaking organizational rationalizations.

These actions have resulted in a margin recovery and a more productive express network in recent years. The end result has helped express take back its position as the leading money spinner for FedEx.

 

The FedEx express fleet has been modernized. Image source: FedEx Corporation
Looking ahead

For the next few years, management's focus will be on integrating the TNT Express acquisition, but -- in common with UPS -- it also needs to stop the decline in ground margins so it can best take advantage of burgeoning e-commerce growth. Meanwhile, a recovery in overall growth will be good for FedEx freight, and a concomitant pickup in global trade will particularly benefit the express segment.

(Lee Samaha - The Motley Fool)

Hainan Airlines to induct 96 aircraft in 2017

Hainan Airlines is expecting to induct 96 aircraft into its fleet during 2017.

These comprise of 41 Boeing 737-800s, one 737-700, 21 Embraer 190s, 16 Airbus A320s, nine 787-9s, four A330-200s, three A330-300s and a single A350. The information was disclosed in a stock exchange statement.

Some of these aircraft are expected to go to subsidiaries under the HNA Group.

The carrier is forecasting a 66.3% jump in passenger numbers this year to 78.2 million, and for aircraft movements to double to 613,800.

Flight Fleets Analyzer shows that Hainan has a fleet of 175 aircraft in service.

(Mavis Toh - FlightGlobal News)

Cathay Pacific names new CEO in leadership shuffle

Cathay Pacific parent Swire Pacific has named senior executive Rupert Hogg to replace the Hong Kong flag carrier’s current CEO Ivan Chu as part of a major leadership reshuffle.

Hogg, who is Cathay’s COO, will become CEO May 1. Chu will become chairman of China’s John Swire & Sons, where he will “play a leading role in the Swire Group’s overall Mainland China investment and development strategy,” the company said. Chu will also remain on the Cathay board as a non-executive director.

Chu was appointed CEO of Cathay in 2014 following a three-year stint as COO. The carrier has been under increasing financial pressure for several months and, in response, Chu has overseen the creation of a corporate restructuring and turnaround plan.

John Slosar, chairman of Swire Pacific and Cathay Pacific, noted that Chu “played a key role in the airline’s management during some very good times and, more recently, some difficult and challenging times.”

Hogg was widely viewed as the most likely successor to Chu. Slosar stressed that Hogg will lead the three-year transformation program, using the platform developed by Chu. Hogg will also take over as chairman of subsidiary carrier Cathay Dragon. He has “an impressive level of aviation and business experience … and brings commercial focus and a spirit of innovation” to the Cathay leadership job, Slosar said.

Other significant changes have been made to the Cathay senior leadership structure. Paul Loo, currently the director of corporate development and information technology, will become chief customer and commercial officer from June 1. At the same time, Greg Hughes will become chief operations and service delivery officer. Hughes currently is group director of components and engine services for HAECO, another Swire company.

Cathay Dragon CEO Algernon Yau will take on the role of Cathay’s director of service delivery, reporting to Hughes. As well as retaining the Cathay Dragon CEO role, Yau will be responsible for “all service delivery aspects of the airlines,” and for most of the Cathay group’s subsidiaries.

(Adrian Schofield - Aviation Daily / ATWOnline News)

Gulfstream G450 landing Incident in Salzburg, Austria

Short Final to Rwy 30 at Long Beach Airport (LGB/KLGB) on October 23, 2008.

(Photo by Michael Carter)

(Photo by www.fmt-pictures.at / G550 Yahoo Group)

The nose undercarriage of H & S Ventures LLC Gulfstream G450 (c/n 4131) N667HS built in 2008 collapsed on April 11, 2017 shortly after it returned to Salzburg (SZG/LOWS), Austria for a precautionary landing. There were no reported injuries to the two crew and two passengers on board. The aircraft had taken off from Salzburg at 1012L en route to Bangor, Maine but there was then a fault indication (undercarriage?) and the pilot elected to return. A safe landing was made and the aircraft cleared the runway but, shortly after stopping on a taxiway, the nose undercarriage collapsed.

(FlightGlobal) 

Alaska Airlines is shutting down Virgin America's rewards program, but with a 'bit of a bonus'

Alaska Airlines will pull the plug on the Virgin America Elevate mileage rewards program.

SeaTac-based Alaska Air Group Inc. plans to fold its new subsidiary's popular loyalty program into the Alaska Mileage Plan on Jan. 1.

Virgin frequent flyers were recently informed of the move as Alaska announced it will probably drop the Virgin America brand in 2019.

Alaska is offering Virgin America fans a bonus for activating and switching early: 10,000 miles or a $100 flight discount credit.

What matters to frequent flyers in any airline takeover are point/mileage conversion rates. Virgin America flyers will be happily surprised, says Steve Danishek, a Seattle travel industry observer and owner of TMA Travel agency.

"The ratio of 1.3 Alaska Miles for every Elevate point seems to be happily higher than anticipated, even more so as coupled with Alaska's announcement that fewer miles will be needed to reach some destinations," Danishek said. "It's a bit of a bonus."

Alaska says its Mileage Plan is the only major airline loyalty program that continues to reward a mile flown with a reward mile on either Alaska or Virgin America flights.

(Andrew McIntosh - Puget Sound Business Journal) 

Hawaiian Airlines Airbus A330-243 (c/n 1422) N393HA "Lehuakona"

Arrives at Las Vegas McCarran International Airport (LAS/KLAS) operating the morning flight from Honolulu (HNL/KHNL) on December 14, 2016.

(Photos by Michael Carter)

Boeing Bullish On Asia-Pacific For BBJs

Asia-Pacific is the largest market for Boeing Business Jets and will remain so for the foreseeable future.

The region now hosts a fleet of 55 BBJs of all kinds, mostly the smaller BBJ1 but including the world’s only VVIP BBJ 787 Dreamliner available for charter, operated by Beijing-based Deer Jet. That’s just over a quarter of the 201 BBJs currently in service around the world.

Greater China has nearly tripled its BBJ fleet in the last five years to 29 aircraft. “It’s been the strongest market for new and used aircraft for the last few years,” says new BBJ chief Greg Laxton, who is making his public debut here at ABACE. “Of those aircraft, about two-thirds are new and one-third pre-owned,” he says.

Laxton notes that worldwide BBJ orders now stand at 243, of which 219 have been delivered (about 18 of those are not yet in service but are being outfitted to customer specifications in completion centers). The tally includes 14 orders for the new-generation BBJ MAX; seven of those are for customers in Asia Pacific, including four in Greater China. First deliveries of “green” MAXs will be late next year, with completions taking another several months.

“A number of customers don’t want to wait that long – they want a BBJ now,” says Laxton. And that explains the strength of demand for pre-owned aircraft in China.

About 42% of pre-owned BBJ sales in the last five years have been to the China market, he notes.

In December BBJ announced the first sale of its smallest aircraft, the MAX 7, to Singapore’s Orient Global Aviation, which will use it to replace its BBJ1 NG. The BBJ MAX 7’s cabin is 76-in (1.93 meters) longer than a BBJ1 and has 800 nm more range at 7,000 nm, enabling it to connect key city pairs such as Dubai-New York that were not possible in the BBJ1. The first “green” MAX 7 will be delivered in 2022.

BBJ expects to announce at the show that it has appointed Beijing’s Ameco as an Authorized Service Center, the 10th in the world and greatly facilitating maintenance of BBJs in China.

(Aviation Week Network)

Austrian Airlines Arrives in Los Angeles

Austrian Airlines Boeing 777-2Z9(ER) (35960/607) OE-LPD "Spirit of Austria" captured on short final to Rwy 24R as she arrives from Vienna International (Schwechat) Airport (VIE/LOWW) this afternoon at 12:58pm PST.

(Photo by Michael Carter)

Austrian Airlines offers flight service to the West Coast of the USA for the first time!

Starting today, Austrian Airlines operates flights to a new long-haul destination in the USA. The largest long-haul aircraft in the Austrian Airlines fleet, a Boeing 777, will be deployed up to six times per week on flights to Los Angeles, the biggest city in California. “We are already well represented in the eastern part of the USA, operating flights to Chicago, Miami, Washington and two airports in New York. We are pleased to offer new flights to Los Angeles, and thus add the West Coast to our flight schedule for the first time in the history of Austrian Airlines”, explains Austrian Airlines Chief Financial Officer Heinz Lachinger.

Los Angeles is already the fourth new destination in the USA to be added to the airline’s route network during the last four years, along with Chicago, Newark and Miami. The million-strong metropolis is a popular vacation destination for Austrians and thus boasts extensive potential for tourism. However, Los Angeles is not only interesting for point-to-point flight traffic but also especially for transfer traffic. About two-thirds of the passengers will transfer flights at the Vienna flight hub.

The new direct flight connection from the West Coast of the USA fulfils a longstanding wish of Norbert Kettner, Vienna’s Director of Tourism: “The USA is Vienna’s biggest distant market, accounting for more than 830,000 overnight stays in the year 2016. The new flight service offered by Austrian Airlines, our most important strategic partner, will act as a driving force for the further development of accommodation numbers for both leisure and congress tourism.”

Up to 37 flights per week to the USA

Flt "AUA81" arrives at LAX following a 12hr 25mn flight sporting the carriers "Sounds of Austria" livery.
(Photo by Michael Carter)

In total, Austrian Airlines offers up to 37 non-stop flights per week to the USA in its summer flight schedule for 2017. Up to four weekly flights are operated to Miami, up to six times per week to Los Angeles, and up to seven flights each week to both Washington and Chicago. Austrian Airlines will continue to operate thirteen flights a week to the New York airports of Newark and JFK.

Austrian Airlines will only fly to Los Angeles within the context of its summer flight schedule. The flight duration from Vienna to Los Angeles at a distance of about 9,900 km is approximately 12 hours 30 minutes. The flights to Los Angeles are thus the longest in the Austrian Airlines route network. Tickets from Vienna to Los Angeles are available starting from EUR 729 for round-trip flights incl. taxes and charges. Tickets can be booked online at www.austrian.com, by calling +43 (0) 5 1766 1000 or via travel agency.

The flights in detail:

Route Flight number Flight days Departure –Arrival (local times)

Vienna – Los Angeles AUA 081 Daily except Sundays 10 a.m. – 1:30 p.m.

Los Angeles – Vienna AUA 082 Daily except Sundays 3:05 p.m. – 12:05 p.m. (next day)

(Austrian Airlines Press Release)

Fatalities Drop but Total Bizav Accidents Increase

According to preliminary data compiled by AIN, turbine business airplane accidents worldwide claimed the lives of fewer people in the first quarter—16 compared to 25 in the same period last year. However, the total number of nonfatal mishaps increased to 21 from 12 over the comparable periods.

U.S.-registered business jets were involved in one fatal accident in each of the first quarters, both occurring under Part 91. One N-numbered business jet was involved in a serious, but nonfatal, accident in the first quarter. A second no-injury mishap in the quarter was classified by the NTSB as an accident due to the “substantial” damage that resulted. There were no reported fatal crashes of non-U.S.-registered business jets in the first quarters of 2017 or 2016.

In this year's first quarter, one accident of an N-numbered turboprop claimed two lives, compared to one crash in which seven persons lost their lives in the period last year. Four non-N-numbered turboprop accidents killed 13 people in the first quarter, compared to 16 who died in five accidents in the first three months of 2016.

No accidents or incidents were recorded for Part 91K jet or turboprop operations in the first quarter, compared to three incidents in the January through March period last year.

(Gordon Gilbert - AINOnline News)

Aviation-Loving Food Hall The Proud Bird Takes Flight on May 15 Near LAX

Flight patterns are starting to line up for The Proud Bird, the new LAX-adjacent food hall with an aviation theme. If all goes as planned, things should kick off by May 15.

The long-running Proud Bird space has been getting a massive overhaul since early 2016, but things are starting to wrap up. That’s good news for fans of the 60s-era restaurant space, and even better news for aviation geeks looking to eyeball some aircraft memorabilia. Among the proposed final details to land on site is a full Douglas DC-3 Dakota plane, as well as a Soviet-era jet fighter, and a Lockheed Model 12 (of which only 130 were reportedly ever made).

On the food and beverage front, expect a handful of stalls working a variety of “globally-inspired” menu items from within the larger compound, plus options for grabbing a drink while watching the planes come in. The cheekily-named Mile High Club will offer cocktails as well as beer and wine, and the entire 50,000 square foot space will be draped in glass so customers can get a good look at the runways beyond.

With additional private dining and corporate event space available, it’s natural to assume that the Westside Proud Bird property will become a new hotspot for corporate types and travelers alike once it opens next month. Until then, interested parties can put their name in for any number of new jobs available on property, from sous chef to banquet server.

(Eater Los Angeles)

IranAir may receive first Boeing jet sooner than planned

IranAir may get its first new Boeing jetliner a year earlier than expected under a deal to take jets originally bought by cash-strapped Turkish Airlines, Iranian media and industry sources said.

Iran had been expected to receive the first of 80 aircraft ordered from the U.S. planemaker in April 2018, but at least one brand-new aircraft is reported to be sitting unused because it is no longer needed by the Turkish carrier.

Industry sources said Boeing was in negotiations to release at least one 777-300ER originally built for Turkish Airlines, which is deferring deliveries due to weaker traffic following last year's failed coup attempt in Turkey.

Boeing said it never comments on talks with customers. The airlines involved were not immediately available for comment.

Iran's Deputy Roads and Urban Development Minister Asghar Fakhrieh-Kashan told the semi-official Mehr news agency the first Boeing 777 aircraft would reach Tehran within a month.

It would be the first new U.S.-built jet delivered to Iran since the 1979 Islamic revolution.

The long-haul 777 is worth $347 million at list prices but is likely to have been sold for less than half that, according to industry estimates.

IranAir has also ordered 100 aircraft from Europe's Airbus under a deal to lift most sanctions in return for curbs on Iran's nuclear program.

Its return to the aviation market after decades of sanctions comes at a time when airlines elsewhere are having second thoughts about purchases due to concerns about the economy and looming over-capacity among wide-body jets.

That trend has made a number of unused jets available for quick delivery at competitive prices, including three Airbus jets recently delivered to Iran, and has allowed IranAir to jump the usual waiting list of several years.

The government of pragmatist President Hassan Rouhani is seen as keen to showcase results from the sanctions deal ahead of a May election at which challengers include hardline Shi'ite cleric Ebrahim Raisi.

Aviation sources say the first aircraft were paid directly from Iranian funds, but doubts remain over credit financing needed to secure almost 180 jets still on order.

Western banks continue to shy away from financing deals between IranAir and Western companies, fearing U.S. banking sanctions that remain in force or a new chill in relations between Tehran and the West under U.S. President Donald Trump.

Boeing has stressed the benefits to U.S. jobs of the plane deals.

Fakhrieh-Kashan was meanwhile quoted on Monday as saying IranAir had reached a long-awaited agreement to buy 20 European turboprops from ATR.

Talks over maintenance with engine maker Pratt & Whitney Canada had delayed a final deal. It was not immediately clear whether the official was referring to an earlier deal for the planes or the final contract including engine overhaul.

ATR said on Sunday it was still in talks with IranAir.

(Tim Hepher and Dubai Newsroom - Reuters)

Gulfstream G-IISP (c/n 41) N401GA

Operated by Peninsular Marine Services, this lovely example of a G-II rolls for takeoff on Rwy 30 at Long Beach Airport (LGB/KLGB) in February 1997. (Kodachrome K64 Slide).

(Photo by Michael Carter)

Alaska Air Won't Be Bailing Out Southwest Airlines and Delta in Dallas

Virgin America Airbus A319-112 (c/n 3347) N526VA "Jane" touches down on Rwy 13R at Dallas Love Field (DAL/KDAL) March 8, 2017. 
(Photo by Michael Carter)

Alaska Air has no interest in giving up Virgin America's gates at overcrowded Love Field in Dallas.

For the past two years, Southwest Airlines and Delta Air Lines have been engaged in a seemingly endless fight over gate space at Love Field, the closest airport to downtown Dallas. The dispute has been making its way through the court system slowly, but it could still be years from being resolved.

Last year, a potential solution appeared when Alaska Air acquired Virgin America, which is the only other commercial airline at Love Field, whereas Alaska Airlines flies to nearby Dallas-Fort Worth International Airport (DFW). It seemed plausible that Alaska would consolidate its Dallas-area operations at DFW, the region's main airport.

However, Alaska Air recently slammed the door on that possibility, as a high-ranking executive revealed that the company has no plans to abandon Love Field.

Southwest and Delta spar over gate space

The long-running dispute between Southwest Airlines and Delta Air Lines stems from an arcane federal law that was originally designed to protect DFW from competition. In its current form, this law restricts Love Field to having just 20 gates -- whereas DFW has 165.

Southwest Airlines has controlled 16 of those gates for many years. In 2015, it subleased two more from United Continental, which decided to stop flying to Love Field. Southwest wanted those gates so as to increase its Love Field schedule to 180 daily departures. That goal requires operating an ambitious 10 flights per day at each gate.

However, Delta Air Lines had been using one of those gates under a short-term lease for its five daily flights to Atlanta. Delta refused to leave, while Southwest said there was no room for it to stay. This situation is what precipitated the ongoing litigation.

Meanwhile, Virgin America has held on to the other two gates. After some recent schedule cuts, Virgin America has just 13 daily departures at Love Field, compared with an original plan that called for operating up to 20 daily departures there. Furthermore, these flights never lived up to Virgin America's expectations from a financial perspective.

Alaska Air doesn't want to leave

It wouldn't be crazy for Alaska Air to give up on Love Field based on this shaky track record. Doing so would potentially allow Southwest Airlines to keep its 18 gates while enabling Delta to take over the current Virgin America gates and add flights at Love Field, which it has wanted to do for several years.

However, in a recent interview with Bloomberg, Alaska Air President Ben Minicucci said: "We're keeping both for sure. We love Love Field." However, he acknowledged that the company might change its route offerings at Love Field.

Given that Alaska is staying at Love Field, it will probably want to start flying to Seattle and Portland, its two largest hubs. At some point, it could also add additional flights to San Francisco and Los Angeles and perhaps start service to San Diego, another California city where it has been steadily growing.

By contrast, Virgin America's routes from Love Field to Las Vegas, New York's LaGuardia Airport, and Washington, D.C.'s Reagan National Airport could be on the chopping block. Alaska Airlines and Virgin America don't have a particularly strong presence in any of these cities.

Virgin America has had a particularly tough time getting reasonable fares on the route to Washington, D.C. Furthermore, takeoff and landing slots at LaGuardia Airport and Reagan Airport are very valuable, so if the routes to Love Field aren't working, Alaska ought to find a better use for those slots.

The battle goes on

Flights to Love Field could be a key weapon for Alaska Air as it pursues its goal of becoming the premier airline for people on the West Coast. With more flights between Dallas and major West Coast cities on tap, it's unlikely that Alaska will ever be able to accommodate Delta at its two Love Field gates.

That means Southwest Airlines and Delta Air Lines will keep slugging it out in court for the foreseeable future. The outcome will determine whether Southwest must continue to make room for Delta at Love Field.

(Adam Levine-Weinberg - The Motley Fool)

Boeing Soars Ahead of Airbus in the Order Race to Start 2017

Boeing brought in nearly 200 net orders during Q1, whereas Airbus barely avoided putting up a goose egg for the quarter.

Over the past few years, Boeing has typically trailed its top rival Airbus in terms of bringing in aircraft orders. This has been a recurring concern for investors.

However, Boeing may be able to snap its losing streak this year. With the first quarter in the books, Boeing is far ahead of Airbus in the order race for 2017.

Boeing starts 2017 on a tear

Order activity has been slowing across the aerospace industry since 2014, driven by a combination of buyer fatigue after several years of strong orders, economic weakness in certain markets, and lower fuel prices (which made it less urgent to replace older planes). Last year, for the first time since 2009, Boeing failed to sell as many planes as it delivered.

As a result, Boeing entered 2017 with fairly modest sales expectations for the year. On the company's January earnings call, CEO Dennis Muilenberg said that Boeing would probably capture a similar number of net orders to the 668 it brought in during 2016.

So far, Boeing has had no trouble finding buyers for its planes. Last week, it reported that it received 198 net orders during Q1. This was far ahead of the 121 net orders it logged in the first quarter of 2016.

As always, the 737 family led the way, with 167 net orders: 70 for the current version and 97 for the upcoming 737 MAX. Boeing also received 15 orders for the 767 as part of the U.S. Air Force tanker program and 11 orders for the 787 Dreamliner. Most importantly, the struggling current-generation 777 won nine orders last quarter. This will help Boeing avoid any further production cuts beyond what it has already announced.

Of note, Boeing's Q1 order activity did not include the company's previously announced deal with Singapore Airlines for 39 wide-bodies. That order hasn't been finalized yet.

Airbus flops

While Boeing's Q1 order performance was all the company could have hoped for and more, Airbus had an extremely quiet quarter. In fact, as of the end of February, it had more cancellations than orders for the year.

During March, Airbus at least managed to get back into positive territory. The company ended Q1 with just six net orders year to date, consisting of nine net orders for the popular A320 narrow-body family and three orders for the A350 wide-body, offset by four A330neo cancellations and two A380 cancellations.

The A330neo and A380 cancellations were widely expected. However, they hit Airbus' two weakest products. The A380 backlog continues to shrink and Emirates seems to be the only airline truly committed to the jumbo jet. Meanwhile, the A330-800neo is down to just six orders from a single customer, making it doubtful that Airbus will proceed with development. Thus, the A330neo "family" may end up having just one member: the larger A330-900neo.

It's still early

Clearly, Boeing had a strong start to 2017, while Airbus did not. However, it's way too early for Boeing executives -- or investors -- to take a victory lap. Aircraft orders tend to come in spurts, and three months isn't a very long time. Airbus could catch up in a hurry if it reels in two or three big deals.

Furthermore, Airbus is still well ahead of Boeing in terms of its total order backlog. As of the end of March, Airbus had 6,744 unfilled airplane orders, exactly 1,000 more than Boeing.

These massive backlogs mean that Boeing and (especially) Airbus have most of their production locked in for the next decade. For now, they should focus on filling in the remaining gaps relative to their production plans. Boeing did a great job in that respect last quarter.

(Adam Levine-Weinberg - The Motley Fool)

Southwest Airlines Boeing 737-8H4(WL) (36895/4874) N8627B

Taxies to wards a Rwy 28R departure at Fort Lauderdale-Hollywood International Airport (FLL/KFLL) on February 8, 2017.

(Photo by Michael Carter)

United Airlines Boeing 737-824(WL) (62760/6056) N77536

 

 Short final to

  

 and touchdown on Rwy 28R at Fort Lauderdale - Hollywood International Airport (FLL/KFLL) on February 8, 2017.

(Photos by Michael Carter)