Mesa Air Group, Inc. (NASDAQ: MESA) today announced that it is amending its new Capacity Purchase Agreement with American Airlines (NASDAQ: AAL).
The amendment will see Mesa pick up flying at the beginning of 2021 over and above its new CPA levels, increasing to a total of five incremental aircraft by March. American retains the option to withdraw any of these incremental aircraft upon 60 days’ prior notice.
“We appreciate the opportunity to add this additional capacity at the request of American Airlines,” said Brad Rich, Executive Vice President and Chief Operating Officer. “We remain optimistic about our relationship with American Airlines and are well prepared to respond positively to future opportunities.”
Qantas and Japan Airlines (JAL) today announced plans to form a new joint business, designed to better serve customers travelling between Australia, New Zealand and Japan and support the tourism industry’s recovery when international flying resumes.
The airlines have submitted an application for authorisation to regulators in Australia and New Zealand, with a decision expected within six months. Subject to this regulatory approval, it is anticipated that the joint business would commence operations around July 2021, when Qantas has said it expects its international network to gradually restart.
The coordination made possible through a joint business would enable Qantas and JAL to ramp up flights between Australia and Japan sooner than would otherwise be possible. The airlines have flagged an intention to launch a new route between Australia and Japan and expect to announce details once regulatory approval is received, borders open and demand returns.
Under the proposed five-year agreement, the airlines would deliver substantial benefits for customers and help accelerate the recovery of the tourism, trade and corporate travel links between Australia and Japan, including:
An expanded codeshare relationship and optimised schedules on flights between Australia and New Zealand and Japan, opening up more connections to more destinations beyond the major city gateways. Qantas customers would have access to 14 new codeshare destinations in Japan and JAL customers would have access to 15 new codeshare destinations in Australia and New Zealand.
Enhanced frequent flyer benefits for Qantas and JAL customers, including improved earn of Qantas points or JAL miles on routes under the joint business beyond what is possible today, as well as the ability to upgrade using points or miles on each other’s services.
Improvements in the customer experience, including streamlined processes for disruption management and investments in product and service inflight and on the ground, designed to better serve the carriers’ joint customers.
More premium travel opportunities, with Qantas able to offer customers a greater number of Business and Premium Economy seats on flights operated by JAL.
Coordination of pricing, schedules, sales and tourism marketing to develop new and improved travel products, delivering more choice for customers.
Qantas Group CEO Alan Joyce said the joint business would play a vital role in reviving trade links with the world’s third largest economy and deliver significant benefits for customers travelling between Australia and Japan.
“Around half a million people visited Australia from Japan in 2019. We want to see that tourism resume and grow even further by making it easier for Japanese travellers to visit,” said Mr Joyce.
“The joint business means we’ll be able to build on our existing relationship with JAL through oneworld to offer more routes, better flight connections and more benefits to frequent flyers. It also helps us diversify our portfolio of joint businesses amongst Australia’s key trading partners.
“It will be a win for our customers, a win for trade and a win for the one million people who work in tourism across Australia.”
Japan Airlines President Yuji Akasaka added: “For over 50 years, JAL and Qantas have operated flights between Japan and Australia, demonstrating our mutual commitment to support and strengthen the diplomatic relationship built by the two countries.
“We believe that a joint business with Qantas will make for a quicker recovery between both countries with the ability to expand connectivity within each carrier’s respective domestic network, providing more customer choice and travel growth opportunities.”
Mesa Air Group, Inc. (NASDAQ: MESA) today reported fourth quarter and full-year fiscal 2020 financial and operating results.
Mesa’s Q4 2020 results reflect net income of $11.4 million, or $0.32 per diluted share, compared to net income of $12.2 million, or $0.35 per diluted share for Q4 2019. Mesa Q4 2020 results include, per GAAP, the deferral of $7.8 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 for Q4 2020 was $44.6 million, compared to $50.8 million in Q4 2019, and Adjusted EBITDAR1 was $54.2 million for Q4 2020, compared to $61.9 million in Q4 2019. For Q4 2020 revenue was $108.0 million, a reduction of $79.8 million (42%) from $187.8 for Q4 2019 primarily due to the reduced flying as a result of COVID-19. During the quarter Mesa recognized $40.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees.
Operationally, the Company ran a 99.8% controllable completion factor, compared to 99.0% in Q4 2019, and a total completion factor of 98.2%, which primarily includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations, compared to 96.9% in Q4 2019.
Full Year
Mesa reported net income of $27.5 million, or $0.78 per diluted share for the 2020 fiscal year, compared to net income of $47.6 million, or $1.36 per diluted share for the 2019 fiscal year. Excluding special items for both periods, adjusted net income1 was $27.5 million or $0.78 per diluted share for the 2020 fiscal year, compared to $57.5 million or $1.64 per diluted share for the 2019 fiscal year. Mesa fiscal 2020 results include, per GAAP, the deferral of $23.8 million of revenue, all of which was billed and paid by American and United during the year and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 was $163.3 million in fiscal year 2020, compared to $208.7 million in fiscal year 2019 and Adjusted EBITDAR was $212.1 million in fiscal year 2020, compared to $260.9 million in fiscal year 2019. For fiscal year 2020, revenue was $545.1 million, a reduction of $178.3 million (25%) from $723.4 million for fiscal year 2019, primarily due to the reduced flying as a result of COVID-19. During the year, Mesa recognized $83.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees as of April 20, 2020.
_______________ 1 See Reconciliation of non-GAAP financial measures
Fiscal 2020 Q4 Highlights
– EPS of $0.32, Full Year $0.78
– Year-end cash increased by $34.5 million to $99.4 million
Recent Updates
– Amended capacity purchase agreement with American to operate 40 CRJ-900s for a five-year term
– Commenced cargo operations for DHL with two Boeing 737-400F
– Added 10 new E175 aircraft to our United fleet in November and December
– Entered into a $195 million loan under the CARES Act with the U.S. Treasury
Queensland and Northern Territory Aerial Services (QANTAS) today marks 100 years since it was founded in the Australian outback.
On 16 November 1920, two veterans of the Australian Flying Corps, Hudson Fysh and Paul McGinness, together with local grazier Fergus McMaster, founded what would later become the national carrier.
This happened just 17 years after the first powered flight by the Wright Brothers, two years after the end of World War One and at the tail end of the last major global pandemic, the Spanish Flu.
The new airline focused on conquering the “tyranny of distance” that was a major barrier to the growth of modern Australia. Its early chances of success were uncertain, to the point early backers called their investment “a donation”.
Initially carrying mail between outback towns, the airline was flying passengers to Singapore by the 1930’s. By the end of the 1940’s its strategic importance saw it nationalised and in the 1960’s, it was an early adopter of the jet aircraft that mainstreamed global travel. Qantas invented business class in the 1970’s, switched to an all-747 fleet in the 1980’s, was privatised in the 1990’s, founded Jetstar in 2004, went through major restructuring in 2014 and, by 2020, had recently completed several important ‘firsts’ in non-stop travel to Europe and the US.
Qantas is the oldest continuously-operating airline in the world and the only one that (normally) flies to every single inhabited continent on earth.
Planned centenary celebrations have been significantly scaled back due to the impact of COVID-19, but Qantas will still mark the occasion with a low-level flyover of Sydney Harbour on the evening of its anniversary.
The flight path is expected to pass near Rose Bay where our Empire Flying Boats took off for Singapore between 1938 and 1942.
Qantas Chairman, Richard Goyder, said: “The history of Qantas shows it’s no stranger to a challenge or a crisis. That’s often when its role as the national carrier has really come to the fore.
“We want to use this moment to say thank you to all those who have supported Qantas over the years. And, in particular, to the many people who have dedicated some or all of their careers to this great company.”
Qantas Group CEO, Alan Joyce, said: “Around the world, Qantas is probably best known for its safety record, endurance flying and long list of aviation firsts. But for Australians, there’s nothing quite like seeing the flying kangaroo at the airport, waiting to take you home. We hope to be doing a lot more of that in the months and years ahead.”
F-15QA1 and F-15QA2 Air to Air. Includes Arch Fly-by, St. Louis, MO. MSF20-0028 Series.
– Qatar Emiri Air Force to receive aircrew and maintenance training support for F-15QA aircraft
– Comprehensive support includes pre-delivery training and maintenance, and in-country services support
Boeing [NYSA: BA] today acknowledged three foreign military sales contracts with the U.S. Air Force for training services and support in the Middle East valued at more than $800 million.
The first previously unannounced contract was awarded in 2019 and will support the Qatar Emiri Air Force (QEAF) with F-15QA program management, maintenance and aircrew training valued at $240 million over a five-year contract period.
Boeing also received a separate not-to-exceed $68 million contract to provide maintenance and logistics support for the QEAF during their pre-delivery training for the F-15QA aircraft, which will commence early next year. The QEAF will send pilots and weapon system operators to the U.S., where the aircrews will learn how to independently operate the F-15QA ahead of receiving their new aircraft. Training will include in-person instruction, simulation events and flying operations and will be held near Boeing’s F-15 production facility in the U.S. through mid-2021.
Following this, Boeing will establish and operate an aircrew and maintenance training center for the QEAF at Al Udeid Air Base, Qatar, through 2024.
A third contract awarded in November and valued at more than $500 million will provide the QEAF with in-country spares and logistics support once the aircraft are delivered to Qatar.
“The tailored training and sustainment delivered by our team, coupled with Boeing’s platform expertise, allows us to deliver a holistic solution to our Qatari customer so they can optimize the full capability of their fleet with high availability rates,” said Tim Buerk, director of Middle East defense services for Boeing. “We look forward to our continued partnership with Qatar and further supporting their mission readiness needs.”
The F-15QA is an advanced variant of the undefeated F-15 aircraft. The Advanced F-15 features next-generation technologies that offer more speed, range and payload than any other fighter in its class. Boeing will deliver 36 F-15QA aircraft to Qatar starting in 2021.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
F-15QA1 and F-15QA2 Air to Air. Includes Arch Fly-by, St. Louis, MO. MSF20-0028 Series.
Southwest Airlines (NYSE: LUV) today announced plans to expand its footprint in Chicago and Houston to give more travelers access to Southwest’s iconic Hospitality, low fares, and Customer-friendly policies.
Chicago O’Hare International Airport Work is underway to add new service from Chicago O’Hare International Airport (ORD), alongside existing service from the carrier’s longtime Chicago home, Midway International Airport (MDW). Midway remains one of the busiest airports in Southwest’s network. Since first arriving in Chicago in 1985, Southwest has grown into one of the city’s largest employers with more than 4,800 Chicago-based Employees.
George Bush Intercontinental Airport As Southwest approaches a commemoration of 50 years of flying, the carrier intends to return to Houston George Bush Intercontinental Airport (IAH), complementing its substantial operation at Houston Hobby (HOU). Intercontinental served as one of three airports where Southwest operated on its first day in operation, June 18, 1971. The carrier moved to Hobby Airport shortly thereafter though it operated service from both airports between 1980 and 2005. Southwest remains a key employer in the City of Houston, providing nearly 4,000 jobs.
“Southwest owes decades of success to our Employees and Customers who have supported our business in Chicago and Houston,” said Gary Kelly, Chief Executive Officer and Chairman, Southwest Airlines. “Today’s announcement furthers our commitment to both cities as we add service to share Southwest’s value and Hospitality with more leisure and business travelers.”
Service to both airports is anticipated to begin in the first half of 2021. Additional details, including schedules and fares, will be available soon.
– Adding Los Angeles, Las Vegas, San Francisco and Cancún, Mexico to Schedule
– JetBlue Planning to be the Largest Carrier in Connecticut by 2021
JetBlue (NASDAQ: JBLU) today announced it is expanding service in Hartford, Conn., with four new nonstop routes between Bradley International Airport (BDL) and Los Angeles (LAX), Las Vegas (LAS), San Francisco (SFO) and Cancún, Mexico (CUN)*. These routes are part of JetBlue’s strategy to add routes with high potential for leisure demand, and will set the airline up to be the largest carrier in Connecticut by 2021.
Last week, Connecticut simplified its travel advisory enabling all travelers visiting or returning to the state to provide a negative COVID-19 test result obtained within 72 hours prior to or upon arrival to avoid the state’s 14-day quarantine.
“We are excited to roll out these new routes connecting Hartford to some of our largest leisure destinations, bringing more low fares and great service to Connecticut residents,” said Scott Laurence, head of revenue and planning, JetBlue. “We are proud to play our part in support of Gov. Lamont’s economic recovery plan. We see great long-term potential for our business in Connecticut, as it becomes an increasingly attractive place to live and work. Additionally, the simplified travel advisory gives clarity to everyone who needs or wants to travel through Bradley International Airport.”
“One of Connecticut’s best competitive assets is its international airport in such close proximity to so many of our communities and employers,” said Connecticut Governor Ned Lamont. “This strengthening of the partnership with JetBlue shows once again how important Bradley International Airport is to our present and our future. More routes, and a strong international airport are key to Connecticut’s success.”
“We are thrilled that JetBlue has taken the step to strengthen their presence and route network at Bradley Airport with this impressive launch of four new cities,” said Kevin Dillon, executive director, Connecticut Airport Authority. “JetBlue is an important partner for us, and we are very pleased to see that the airline recognizes the potential of the Bradley Airport market. We are confident that our strengthened partnership will provide major benefits for Connecticut travelers, JetBlue, and Bradley Airport.”
JetBlue has built a sizeable presence in Hartford with up to 12 flights per day pre-pandemic and has been instrumental in adding new routes and lowering fares for state residents. When the routes launch in the coming months, JetBlue will have the most nonstop destinations from Bradley International Airport of any carrier.
Service between Bradley International Airport (BDL) and:
Cancún, Mexico (CUN)*Launching November 19, 2020
Los Angeles (LAX)Launching December 18, 2020
Las Vegas (LAS)Launching December 18, 2020
San Francisco (SFO)Launching December 18, 2020
The announcement for new Connecticut routes comes shortly after the airline revealed a lineup of two dozen all-new nonstop destinations, plus expanded Mint service in Newark and Los Angeles. Each route plays to JetBlue’s strengths in the airline’s focus cities, in Florida, Latin America and the Caribbean or on cross-country – or transcontinental – flying. Every market has been identified as one in which JetBlue anticipates increasing demand for leisure travel.
In anticipation of these recent network additions, JetBlue is readying some aircraft that have been temporarily parked. The airline is dedicated to remaining flexible, continuing to assess the airline’s network and allowing market demand to determine how long a particular route continues to operate.
The only thing constant is change and at United Airlines, some of the fees associated with changes related to flying are gone for good. The carrier announced today that it is permanently getting rid of change fees on all standard Economy and Premium cabin tickets for travel within the U.S., effective immediately. And starting on January 1, 2021, any United customer can fly standby for free on a flight departing the day of their travel regardless of the type of ticket or class of service, a first among U.S. carriers, while MileagePlus Premier members can confirm a seat on a different flight on the same day with the same departure and arrival cities as their original ticket if a seat in the same ticket fare class is available.
United is also extending its waiver for new tickets issued through December 31, 2020, to permit unlimited changes with no fee. This policy applies to all ticket types issued after March 3, 2020 and is valid for domestic and international travel. With these improvements, no U.S. airline gives their customers more flexibility when booking – and changing – their travel plans than United Airlines.
“Change is inevitable these days – but it’s how we respond to it that matters most. When we hear from customers about where we can improve, getting rid of this fee is often the top request,” said Scott Kirby, CEO of United Airlines, in a video message to customers. “Following previous tough times, airlines made difficult decisions to survive, sometimes at the expense of customer service. United Airlines won’t be following that same playbook as we come out of this crisis. Instead, we’re taking a completely different approach – and looking at new ways to serve our customers better.”
The new change fee policy applies to all standard Economy and Premium cabin tickets for travel within the U.S. 50 states, Puerto Rico and the U.S. Virgin Islands and customers will not be limited in the number of times they adjust their flights.
Additionally, United is giving customers more flexibility to change their flights on the day of their travel so they can head home if a meeting ends earlier or enjoy a few more hours on vacation. With the ability to list for same-day standby for free, customers will now have an option to take a different flight with the same origin and destination airports as their original itinerary if space is available at departure. This enhanced option will be available to all customers for travel within the U.S. and to and from international destinations beginning on January 1, 2021. Customers who want to switch flights will be able to add themselves to the standby list through United’s award-winning mobile app, on united.com or at the airport no later than 30 minutes prior to departure for domestic flights and one hour before departure on international flights.
The carrier is also improving the travel experience for its MileagePlus members including waiving all redeposit fees on award travel for flights changed or cancelled more than 30 days before departure and allowing all MileagePlus Premier members to confirm a different flight on the day of their travel. As a way to thank MileagePlus Premier members for their loyalty, beginning January 1, 2021, all Premier members will be able to confirm a seat for free on a different flight with the same departure and arrival cities as their original ticket. This expanded option will allow MileagePlus Silver members and above to confirm a new seat in the same ticket fare class if space is available. Earlier this year, United announced that it will extend status for MileagePlus Premier and Global Services members through January 2022. United also reduced thresholds for Premier qualification by 50 percent for each status level, to make reaching an even higher status tier easier.
– Air New Zealand is supportive of today’s news mandating the wearing of masks or face coverings on public transport, including aircraft, from Monday 31 August due to Covid-19
Air New Zealand Chief Executive Officer Greg Foran says customers flying from Auckland have been required to wear masks while it has been at Alert Level 3 and it has been recommended for customers travelling from other ports.
“We will now start to review our domestic network and will be contacting customers who may be affected by the extension of current Alert Levels.
“We understand the impacts these disruptions cause to our customers and we’ll do our best to get our customers to where they need to be.”
Fare flexibility is still in place and the airline encourages those who no longer wish to fly to opt to hold their fare in credit through its online booking tool.
The airline has been operating a reduced domestic schedule to and from Auckland while it has been at Alert Level 3. The majority of the rest of Air New Zealand’s network has remained unchanged but with physical distancing in place.
As Delta works to restart service in line with the lifting of travel restrictions, potential vaccine availability and the gradual return of demand, customers will see more trans-Atlantic and trans-Pacific flights to top business and leisure destinations for the winter 2020-2021 and summer 2021 seasons. While the airline expects pre-COVID level recovery for international flying to continue to lag U.S. domestic, Delta plans to add over 50 transoceanic flights next summer, compared to the summer 2020 schedule.
Delta will focus its strengths in its core markets and with the support of its partners, offer customers a wide array of onward connections.
“While significant hurdles remain in the global fight against the pandemic, we are ready to connect customers to the people, places, opportunities and experiences they’re longing for,” said Joe Esposito, S.V.P. – Network Planning. “Customers flying internationally can look forward to a modernized fleet featuring our latest cabin products and a travel experience that prioritizes their health and the health of our employees from check-in to baggage claim.”
As customers consider future travel, whether international or domestic, Delta’s multi-layered approach to their health and safety ensures peace of mind throughout the travel journey. These include, but are not limited to:
– Sanitizing all aircraft with electrostatic spraying before departure and extensive pre-flight disinfection of high-touch points throughout the aircraft interior.
– Using state-of-the-art air circulation systems with HEPA filters that extract more than 99.99% of particles, including viruses.
– Blocking all middle seats and limiting the number of customers per flight through Jan. 6, 2021.
– Requiring face masks throughout the airport, in Delta Sky Clubs and on board the aircraft
Click the link below for the full story and more details!
