Tag: hub (Page 6 of 7)

Lufthansa Group Welcomes More Than 14.1 Million Passengers in August, 2019

September 12, 2019 / WIL BALDWIN

Number of passengers rises by 2.9 percent year-on-year
Capacity utilisation up by 0.8 percentage points to 87.2 percent
Strongest passenger growth at Zurich hub

In August 2019, the Lufthansa Group airlines welcomed more than 14.1 million passengers. This shows an increase of 2.9 percent compared to the previous year’s month. The available seat kilometres were up 1.8 percent over the previous year, at the same time, sales increased by 2.7 percent. In addition as compared to August 2018, the seat load factor rose by 0.8 percentage points to 87.2 percent.

Cargo capacity increased by 8.9 percent year-on-year, while cargo sales increased by 1.5 percent in revenue tonne-kilometre terms. As a result, the Cargo load factor showed a corresponding reduction, decreasing by 4.2 percentage points to 58.8 percent.

Network Airlines with around 10.2 million passengers

The Network Airlines including Lufthansa German Airlines, SWISS and Austrian Airlines carried around 10.2 million passengers in August – 3.3 percent more than in the prior-year period. Compared to the previous year, the available seat kilometres increased by 3.1 percent in August. The sales volume was up by 4.0 percent over the same period, with an increasing seat load factor by 0.7 percentage points to 87.3 percent.

Strongest passenger growth at Zurich hub

In August, the strongest passenger growth of the network airlines was recorded at the Zurich hub with 7.0 percent. The number of passengers increased by 4.7 percent in Vienna and by 4.5 percent in Munich. In Frankfurt the number of passengers on the contrary decreased by 0.9 percent. The underlying offer also changed to varying degrees: In Munich the offer increased by 12.1 percent, in Zurich by 2.6 percent and in Frankfurt by 0.3 percent. In Vienna the offer decreased by 1.0 percent.

Lufthansa German Airlines transported more than 6.6 million passengers in August, a 1.8 percent increase compared to the same month last year. A 4.0 percent increase in seat kilometres corresponds to a 4.8 percent increase in sales. The seat load factor rose by 0.7 percentage points to 86.8 percent.

Eurowings increases supply and sales on short-haul routes

Eurowings (including Brussels Airlines) carried around 3.9 million passengers in August. Among this total, around 3.6 million passengers were on short-haul flights and 309,000 flew on long-haul flights. This corresponds to an increase of 1.8 percent compared with the previous year, resulting from an increase of 2.8 per cent on short-haul flights and a reduction of 8.1 per cent on long-haul flights. A 3.5 percent decrease in capacity was offset by a 2.3 percent decrease in sales, resulting in an increase of seat load factor by 1.0 percentage points to 87.0 percent.

In August, the number of seat-kilometres offered on short-haul routes was increased by 1.5 per cent, while the number of seat-kilometres sold increased by 3.5 per cent over the same period. This results in a seat load factor of 87.1 per cent, which is 1.7 percentage points higher on these flights. On long-haul flights, the seat load factor decreased by 0.4 percentage points to 86.6 per cent over the same period. The 13.4 per cent decrease in capacity was offset by a 13.8 per cent decrease in sales.

New Macau Leader Backed by Beijing

August 25, 2019 / WIL BALDWIN

HONG KONG, Aug 25 (Reuters) – The Chinese territory of Macau elected former legislature head Ho Iat Seng as its leader on Sunday – the sole approved candidate.

Ho, who has deep ties to China, is expected to cement Beijing’s control over the special administrative region and distance it from protests in neighbouring Hong Kong.

He secured 392 votes from a 400-member pro-Beijing committee to lead the world’s largest gambling hub for at least the next five years, public broadcaster TDM reported.

The 62-year-old’s highly scripted appointment comes as the former Portuguese colony tries to position itself as a beacon of stability and model for the Chinese government’s “one country, two systems” formula through which Beijing administers Macau and Hong Kong.

Although anti-government protests have roiled the former British colony of Hong Kong for nearly three months, Macau has seen little dissent to Beijing’s rule.

Ho said local youth could resist the influence of Hong Kong’s protesters and support measures to boost patriotism in Macau.

(Reporting by Farah Master; Editing by Raju Gopalakrishnan)

WestJet, Delta Air Lines Obtain Clearance for Joint Venture

June 27, 2019 / WIL BALDWIN

WestJet and Delta Air Lines today announced that their proposed U.S. – Canada transborder joint venture has received clearance under Canada’s Competition Act from the Canadian Competition Bureau. The CCB issued a no-action letter confirming that it does not intend to challenge the proposed joint venture agreement between WestJet and Delta Air Lines.

“Today’s clearance by the CCB is an important step towards satisfying the conditions necessary to implement the proposed WestJet-Delta transborder joint venture,” said Ed Sims, WestJet President and CEO. “We thank the CCB for its timely and thorough review. The joint venture will lead to more consumer choice, connectivity, and economic benefits on both sides of the border by growing U.S.-Canada business and tourism travel.”

Ed Bastian, Delta’s CEO, said, “This significant achievement brings us closer to implementing a joint venture that provides a world-class experience for customers travelling between the U.S. and Canada. The joint venture between Delta and WestJet will create an expanded network with more frequencies and destinations, improved airport connections and significantly enhanced frequent flyer benefits.”

The proposed joint venture between the two airlines is still subject to regulatory approval from the U.S. Department of Transportation.

Upon receipt of all regulatory clearances or approvals in the U.S., the new joint venture will enable Delta and WestJet to deepen their existing partnership with expanded codesharing, reciprocal elite frequent flyer benefits, optimized growth across the U.S.-Canada transborder networks, and co-location at key hubs with initiatives designed to deliver a more seamless guest experience. The partners will also begin implementing joint sales and marketing activities and increase belly cargo cooperation.

Further information about WestJet and Delta Air Lines is available at westjet.com and delta.com.

Delta Equity Investment Deepens Ties With Partner Korean Air

June 20, 2019 / WIL BALDWIN

Korean Air joint venture provides a strong platform for Delta growth, world-class customer benefits and revenue generation across one of the most comprehensive route networks in the trans-Pacific.
Delta has acquired a 4.3 percent equity stake in Hanjin-KAL.

Delta has acquired a 4.3 percent equity stake in Hanjin-KAL, the largest shareholder of Korean Air. The investment demonstrates Delta’s commitment to the success of its joint venture with Korean Air and the customer benefits, market positioning and growth opportunities the partnership enables. Delta intends to increase its equity stake to 10 percent over time, after receiving regulatory approval.

“Together with the team at Korean Air, we have a vision to deliver the world’s leading trans-Pacific joint venture for our shared customers, offering the strongest network, the best service and the finest experience connecting the U.S. with Asia,” said Delta CEO Ed Bastian. “This is already one of our fastest-integrating and most successful partnerships, and experience tells us this investment will further strengthen our relationship as we continue to build on the value of the joint venture.”

Delta and Korean Air operate the industry’s most robust trans-Pacific joint venture, providing customers with seamless access to more than 290 destinations in the U.S. and over 80 destinations in Asia, including the partnership’s award-winning hub at Seoul-Incheon (ICN).

Since launching in May 2018, Delta and Korean Air have strengthened cooperation by expanding joint operations in the trans-Pacific to include more than 1,400 codeshare flights, including connections throughout Asia and the U.S. Teams at both airlines have also worked closely together to provide the best travel experience for customers between the U.S. and Asia, integrate sales and marketing activities, and enhance loyalty program benefits, such as the ability to earn more miles on both loyalty programs and redeem them on a wider range of flights. Additionally, Korean Air and Delta have launched cargo cooperation across one of the most comprehensive route networks in the trans-Pacific market.

The partnership is contributing to Delta’s first year-over-year growth in the Asia Pacific region since 2012, with new service launched earlier this year between Minneapolis/St. Paul and Seoul, as well as Seattle and Osaka, operated in partnership with Korean Air. Additionally, Korean Air has launched new service linking Boston with Seoul.

The joint venture builds on nearly two decades of close partnership between Korean Air and Delta, both founding members of the SkyTeam airline alliance.

Delta is growing its international footprint and leveraging partnerships with key airlines in regions around the world, including through joint ventures and equity investments. These investments improve alignment between Delta and its partners, creating a more stable environment for growth amid an increasingly dynamic global landscape.

Embraer Announces KLM Intention for up to 35 E195-E2 Jets

June 19, 2019 / WIL BALDWIN

Paris, France, June 19, 2019 – Embraer announced today, at the 53rd International Paris Air Show, KLM Cityhopper’s intention to purchase up to 35 E195-E2 jets, 15 firm orders with purchase rights for a further 20 aircraft of the same model. This intention, which still requires a Purchase Agreement, has a value of USD 2.48 billion based on Embraer’s current list prices. The order will be added to Embraer’s backlog as soon as a firm contract is completed.

“With a fleet of 49 E-Jets, KLM is already the largest Embraer operator in Europe and adding KLM to the E2 family of operators would be a huge vote of confidence in Embraer, our after sales care, and the E2 programme. The aircraft uses 30% less fuel per seat compared to KLM Cityhopper’s current E190s. And in terms of aircraft noise, the aircraft is the quietest in its class both internally for passengers, and externally, by a significant margin*”, said John Slattery, President and CEO, Embraer Commercial Aviation.

KLM President & CEO Pieter Elbers, said, “Embraer has been a key partner for KLM and Cityhopper over the past ten years. Our customers appreciate the E190 and E175’s. The E2 would be a welcome addition to the KLM fleet, giving us greater capacity flexibility and help to manage down costs. In addition, the environmentally friendly E195-E2 also supports our sustainability goals with lower levels of noise and emissions.”

The economic and environmental performance of the aircraft makes the E195-E2 the ideal aircraft for growing KLM’s European business and supporting their hub-and-spoke operation, complementing the mainline fleet. This is why Embraer nicknamed the jet – The Profit Hunter.

KLM Cityhopper started the process of replacing its fleet of venerable Fokker aircraft for E-Jets in 2008, in order to enhance the existing network and to permit the efficient development of new routes. KLM Cityhopper’s all Embraer fleet currently has 49 E-Jets, the largest E-Jet fleet in Europe – 32 E190’s and 17 E175’s.

Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers from all over the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleet of 75 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

*Note to Editors External noise technical information: the cumulative margin to ICAO Stage IV noise limit ranges from 19 to 20 EPNdB, 4.0 EPNdB better than its direct competitor.

About KLM Cityhopper

KLM Cityhopper is Europe’s largest regional carrier. In 2018 it operated more than 300 flights per day from Amsterdam Airport Schiphol to 72 European destinations. Since 2018, KLM Cityhopper’s fleet consists entirely of Embraer jets, including 32 E190’s and 17 E175’s. This will give KLM the single largest Embraer fleet in Europe.

Delta Expands A220 Order Book by 5 Aircraft to 95 total

June 18, 2019 / WIL BALDWIN

Delta and Airbus announced Tuesday that Delta has agreed to expand its Airbus A220 order book by five aircraft to a total of 95.

Delta now expects to take delivery of 45 A220-100s and 50 A220-300s during the next four years, with the first -300 variant expected in 2020 coming from Airbus’s Mobile, Alabama final assembly line.

This week, Delta began flying the amenity-rich A220 from its Seattle hub, and will offer as many as 74 daily departures from 10 airports this summer.

In a separate arrangement, Airbus and Delta have signed a non-binding memorandum of understanding for Delta TechOps to provide A220 component repair and material services for Airbus’ A220 Flight Hour Services maintenance-by-the-hour program. This strategic partnership will allow Airbus to further enhance its successful Flight Hour Services program for the A220 by building on Delta Tech Ops’ proven component repair and management capabilities and on Airbus’ expertise in maintenance engineering, inventory management and innovative services solutions.

As the largest aviation maintenance group in North America, Delta TechOps highly skilled workforce of over 10,000 technicians, engineers and other support employees provide full-service maintenance to more than 850 Delta aircraft and their engines as well as maintenance services to more than 150 other operators, cargo operators and the Military & Government, through the airline’s MRO business.

Delta & Aeromexico Celebrate Second Year of Key Partnership

June 3, 2019 / WIL BALDWIN

Story by Sarah Lora

The two airlines have jointly transported more than 14.4 million passengers since the Joint Cooperation Agreement launched.

Highlights include introducing eight new routes and two new joint destinations in Mexico, strengthening the network’s power in the transborder market.
Airlines have eliminated 80% percent of the differences in service and standardized processes to create a seamless travel experience.

Since Delta Air Lines and Aeromexico departed together on a journey to pioneer the first transborder airline alliance between the U.S. and Mexico, more than 14.4 million passengers have benefitted from the carriers’ integration during the last two years.

Today, Delta and Aeromexico jointly offer more than 1,100 weekly flights on 64 routes between 11 cities in Mexico and 33 in the U.S. The Joint Cooperation Agreement has launched eight new routes and two new joint destinations in Mexico, and allowed terminal co-location in 12 airports in the U.S., 10 of which are Delta hubs, and three Aeromexico hubs in Mexico.

As seamless as checking in at a Delta terminal and boarding an Aeromexico plane, “our goal is creating a familiar travel experience with standards that are common across Delta and Aeromexico. This partnership and the integration of both airlines allow us to offer a more powerful network, more benefits and standard policies, which result in a seamless service,” said Nicolas Ferri, Delta’s Vice President— Latin America and Alliances Americas.

True to its word, the JCA has so far eliminated 80% of the differences in services and has standardized many processes, such as purchasing tickets online or benefitting from loyalty programs. On board, customers will find uniformity on Delta and Aeromexico cabins, seat selection and checked and carry-on baggage policies; parallel access to Gogo’s WiFi portal and free text messaging; as well as having Spanish-speaking crew members on all transborder flights.

“Although the integration of commercial processes, products, airports and sales teams has been a great challenge, communicating with a cohesive voice has facilitated that assimilation. While Delta and Aeromexico have distinct and unique looks, we respect each other and share the same vision: to provide the best of each to our customers,” said Paul Verhagen, Aeromexico’s Senior Vice President – International Sales.

Providing the best isn’t limited to the airport experience. From sponsoring the Mexican National Soccer Team to the Latin GRAMMY Acoustic Sessions in Miami, L.A. and Mexico City, Delta and Aeromexico are committed to supporting the communities they serve. The airlines aim to foster unity, diversity and to uphold corporate values through their sponsorships of a variety of sporting and cultural events in both Mexico and the United States.

“Such a historic alliance between two iconic airlines is about making travel between the two carriers easier for customers. By working together, we have shared and applied best practices and business solutions, bringing our individual strengths into the partnership,” added Ferri.

Delta and Aeromexico sales professionals have formed a fully integrated sales team dedicated to promoting both operators in the U.S. and Mexican markets. Routes have been increasingly added throughout the two years under the JCA, strengthening the power of the network in the transborder market.

Customers from Atlanta can enjoy nonstop access to nine cities in Mexico including Mexico City, Guadalajara and Monterrey. The JCA also operates direct flights from New York, Detroit, Minneapolis, Salt Lake City, Seattle, and Los Angeles to multiple business and leisure points in Mexico.

Connectivity is crucial to driving business and boosting the economy of both countries, while offering customers the possibility of discovering new experiences through Delta and Aeromexico’s distinctive service in the coming years.

American Airlines Eliminates Some Oversized Bag Fees

May 21, 2019 / WIL BALDWIN

FORT WORTH, Texas — As the busy summer travel period quickly approaches, American Airlines has announced changes to its policies regarding oversize sports and music equipment. American is eliminating oversize bag fees for common sports and music equipment, effective for travel on or after May 21. The updated policies, which will be music to the ears of musicians who fly on American, will also ensure that customers can more easily pursue active and healthy lifestyles wherever their travels may take them, without having to pay additional oversize bag fees.

Customers can check common oversize sports and music equipment as standard baggage, up to the maximum allowed dimensions and within the weight requirements. Refer to the full policy for additional information.

What you should know

• Based on feedback from our customers and American team members, American is eliminating the charge for common oversize sports and music equipment — up to the maximum size we accept for these items. The change is effective for travel on or after May 21.
• American will accept these oversize items as a standard checked bag without an additional oversize charge.
• The checked oversize bag counts toward a customer’s normal baggage allowance. For example, customers traveling within the United States, who used to pay $150 to check one oversize item such as a surfboard, will now pay $30 — the cost of a standard first bag — if the weight is less than 50 lbs. Customers traveling with skis or a snowboard will now be able to check in an equipment bag with the skis or snowboard as one bag (up to 50 lbs./62 in.).
• Due to special handling requirements, oversize items such as antlers, hang gliders, scuba tanks and kite/windsurfing items will continue to incur a flat $150 fee.
• Additional allowances/restrictions may apply based on destination, class of service, elite status, active U.S. military members or AAdvantage® cardmembers (on domestic American-operated itineraries). For more information, visit aa.com/checkedbags.

About American Airlines Group

American Airlines and American Eagle offer an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. American has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. American is a founding member of the oneworld® alliance, whose members serve more than 1,000 destinations with about 14,250 daily flights to over 150 countries. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL. In 2015, its stock joined the S&P 500 index.

Wynn Ends Acquisition Talks with Australia’s Crown Resorts

April 9, 2019 / WIL BALDWIN

FILE PHOTO – The logo of Australian casino giant Crown Resorts Ltd adorns the hotel and casino complex in Melbourne, Australia, June 13, 2017. REUTERS/Jason Reed/File Picture

(Reuters) – Wynn Resorts Ltd, the world’s No. 2 casino operator, said on Tuesday it scrapped preliminary talks to acquire Crown Resorts Ltd for A$10 billion ($7.1 billion), after the Australian Financial Review broke news of the negotiations.

Wynn’s backtracking illustrates how media leaks of deal talks can test the resolve of potential acquirers. Crown shares jumped as much as 22 percent on the news to A$14.37, close to the $A14.75 per share level that Crown said Wynn’s latest cash-and-stock offer valued the company.

This can make deal negotiations more difficult by emboldening acquisition targets to drive a hard bargain, analysts said. In this case, Wynn’s inexperience with pursuing big deals also likely played a factor, some analysts added.

“(Wynn) management’s experience with acquisitions is limited, so when you target synergies it’ll be nice to have more of a track record for such a large transaction,” said Roth Capital Partners analyst David Bain, calling the termination of the deal talks a positive development for Wynn.

After the Australian Financial Review revealed Wynn’s takeover approach, Crown not only confirmed the confidential talks on Tuesday, but also disclosed the price that Wynn was offering. It added that Crown’s board had not yet considered Wynn’s latest offer.

Wynn then issued two statements, first confirming the talks, and, a few hours later, stating that they had ended.

“Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction,” the company said in a statement.

Wynn’s shares were down 3.2 percent at $140.21 in New York at mid-afternoon.

Examples of companies confirming acquisition talks only to back out hours later are few and far between, because they reflect a lack of conviction on the part of the aspiring acquirers.

Last year, drug maker Allergan Plc confirmed it was in the early stages of making an offer for peer Shire Plc, after Reuters broke news of the deliberations, only to issue a second statement a few hours later stating it would not make an offer.

Insurer Aon Plc said last month it would not pursue a merger with rival insurance brokerage Willis Towers Watson Plc, a day after it confirmed it was in early stages of considering an all-stock offer for the Irish company following a Bloomberg News report revealing the deliberations.

HEDGE AGAINST MACAU

Wynn was founded in 2002 by Steve Wynn, who started his casino business in Las Vegas in the 1960s and created some of the city’s most iconic landmarks – the Mirage, Bellagio and Treasure Island – before selling them. Beset by sexual misconduct allegations, Wynn left the company and sold his entire 11.8 percent stake in Wynn Resorts for $2.1 billion last month.

Wynn operates large resort-and-casino complexes in Las Vegas and Chinese gambling hub Macau, with another under construction in Massachusetts. The deal would have offered a hedge against Macau, where its licences are up for renewal, by giving it two lavishly revamped Australian casinos and a third being built on the prized Sydney harbour front.

Buying Crown would also fit in with Wynn’s strategy to diversify geographically to protect its growth prospects if its Macau licences are not renewed.

The company’s efforts so far have included ramping up promotion of a resort in Japan, a market seen as the next potential goldmine to Macau and a former expansion target for Crown.

“Wynn has typically grown through building their own facilities, not through acquisition,” said Bain, the Roth Capital Partners analyst.

For Crown’s 47 percent owner James Packer, who re-badged his father’s media empire as a gambling concern in 2007 only to withdraw from business engagements last year due to mental illness, the deal would have ended his career as a casino mogul with a A$4.7 billion payout.

He would have ended up as Wynn’s biggest shareholder with 9.8 percent of its shares, based on its current number of shares on issue.

“We think Wynn’s strategy was mostly defensive, but if they have a strong strategic rationale for wanting to acquire Crown, they would likely come back to the table when things settle down,” said John DeCree, Union Gaming Securities’ director of North America research.

(Reporting by Byron Kaye, Tom Westbrook and Paulina Duran in SYDNEY, Devika Syamnath and Nivedita Balu in BENGALURU, and Greg Roumeliotis in NEW YORK; Editing by Sriraj Kalluvila, Shounak Dasgupta and Richard Chang)

(Nattee Chalermtiragool/Shutterstock) stock-Wynn-Macau-01-shutter Macao, China – March 12, 2016: View of Macao city at night in Macao, China

Alitalia Future Uncertain as easyJet Quits Talks

March 18, 2019 / WIL BALDWIN

LONDON (Reuters) – The future of Alitalia was plunged further into uncertainty on Monday after British budget airline easyJet pulled out of talks to rescue the Italian carrier two weeks before a deadline to save it.

EasyJet said it had decided to withdraw from the process after discussions with Italy’s state-controlled railway Ferrovie dello Stato Italiane and U.S. airline Delta Air Lines.

Alitalia was put under special administration in 2017 after workers rejected the latest in a long line of rescue plans, leaving the government once again seeking a buyer to save the airline.

Ferrovie is racing against the clock to meet deadline of the end of the month set by the Italian government to present a rescue plan for Alitalia, and had been in talks with easyJet and Delta over a possible deal.

But the parties had not seen see eye to eye on the structure of a deal. Without an industrial partner fully on board, a source said last week that Alitalia could soon find itself in trouble since neither Ferrovie nor the state have the skills to run the carrier.

Delta said it was still in talks with Ferrovie.

“Discussions remain ongoing as Alitalia is a long-standing partner of Delta,” the U.S. airline said in a statement.

Alitalia and Ferrovie could not immediately be reached for a comment.

EasyJet, whose shares were unaffected by Monday’s announcement, had said several times it was interested in Alitalia’s short-haul operations and positions at primary airports.

A source familiar with the talks said easyJet still believed it could be a good partner for Alitalia, but that a deal was not feasible with the current approach.

“EasyJet pulled out because it wanted to control (Alitalia’s) Milan hub and use it for point-to-point flights. This could not be done,” another source with knowledge of the matter said.

EasyJet said it remained committed to Italy, as a key market for the company.

“We continue to invest in the three bases in Milan, Naples, (and) Venice,” it said in a statement.

(Reporting by Alistair Smout in London and Sangameswaran S in Bengaluru; Additional reporting by Agnieszka Flak in Milan and Giselda Vagnoni in Rome; Editing by Keith Weir and Mark Potter)

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