Tag: capacity (Page 7 of 12)

Myanmar Airways International Commences Revenue Flights with Embraer E190

December 25, 2020 / WIL BALDWIN

Myanmar Airways International’s (MAI) first E190 commenced operations from Yangon yesterday, operating four flights throughout the day. In addition, MAI’s second E190 is due to arrive in the country on 23 December 2020 and the airline will expand its E190 routes to include nine destinations across the country, upgauging from the turboprops used by its sister airline Air KBZ.

MAI has also signed on for Embraer’s Pool Program – a program enrolled by all E-Jet operators in Asia Pacific. There are now four new E-Jet operators in Asia Pacific (ex. China) since the start of 2020.

“Our pilots, cabin crew, maintenance crew and our staff are proud to take MAI’s E190 to the skies and to serve our passengers with an enhanced flying experience,” said Saravanan Ramasamy, Chief Executive Officer of MAI. “We look forward to a productive partnership with Embraer. The operation of the E190 marks yet another important milestone in MAI’s fleet expansion strategy and domestic jet network growth. As the demand grows, we plan to scale up the frequency of our E190 operations to eight flights a day.”

“The commencement of Myanmar Airways International’s E190 flights will enhance connectivity in Myanmar,” said Raul Villaron, Asia Pacific Vice President for Embraer Commercial Aviation. “The airline will benefit from the performance and efficiency of the aircraft and generous cargo capacity. Passengers will appreciate the comfort in the cabin. Myanmar Airways International can operate with full confidence that our excellent service and support team are here to support them.”

In preparation for the E190 operations, eight MAI pilots underwent the month-long Initial Pilot Training in September 2020 in Zhuhai, China. Separately, Embraer conducted the license-engineer type course for MAI’s engineers. Embraer’s Pool Program, which MAI has enrolled in offers full repair coverage for components and parts, airframe maintenance, and unlimited access to a large stock of components at the company’s distribution centers. Operators benefit from significant savings on repair and inventory costs, reduction in required warehousing space and resources required for repair management, while ultimately providing guaranteed performance levels. Singapore is the base for Embraer’s warehouse in the Asia Pacific region.

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 1,600 aircraft have been delivered. Today, E-Jets are flying in the fleet of more than 80 customers in some 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

Mesa Air Group Reports Fourth Quarter, Full-Year 2020 Profit

December 9, 2020 / WIL BALDWIN

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.

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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

Ryanair Orders 75 More Boeing 737 MAX Jets

December 6, 2020 / WIL BALDWIN

Boeing [NYSE: BA] and Ryanair announced today that Europe’s largest airline is placing a firm order for 75 additional 737 MAX airplanes, increasing its order book to 210 jets. Ryanair again selected the 737 8-200, a higher-capacity version of the 737-8, citing the airplane’s additional seats and improved fuel efficiency and environmental performance.

“Ryanair’s board and people are confident that our customers will love these new aircraft. Passengers will enjoy the new interiors, more generous leg room, lower fuel consumption and quieter noise performance. And, most of all, our customers will love the lower fares, which these aircraft will enable Ryanair to offer starting in 2021 and for the next decade, as Ryanair leads the recovery of Europe’s aviation and tourism industries,” said Ryanair Group CEO Michael O’Leary.

O’Leary and Ryanair leaders joined the Boeing team for a signing ceremony in Washington, D.C. Both companies acknowledged COVID-19’s impacts on air traffic in the near-term, but expressed confidence in the resilience and strength of the passenger demand over the long term.

“As soon as the COVID-19 virus recedes – and it likely will in 2021 with the rollout of multiple effective vaccines – Ryanair and our partner airports across Europe will – with these environmentally efficient aircraft – rapidly restore flights and schedules, recover lost traffic and help the nations of Europe recover their tourism industries, and get young people back to work across the cities, beaches and ski resorts of the European Union,” O’Leary said.

Ryanair is the launch customer for the high-capacity 737-8 variant, having placed its first order for 100 airplanes and 100 options in late 2014, followed by firm orders of 10 airplanes in 2017 and 25 in 2018. The 737 8-200 will enable Ryanair to configure its aircraft with 197 seats, increasing revenue potential, and reduce fuel consumption by 16 percent compared to the airline’s previous airplanes.

The Republic of Mali Orders an Additional Airbus C295

December 2, 2020 / WIL BALDWIN

The Ministry of Defence of the Republic of Mali has placed a firm order for an additional Airbus C295 airlifter in the transport configuration. This second aircraft, to be delivered in 2021, will supplement the first C295 already in operation since December 2016 which has already accumulated 1,770 flight hours and transported more than 38,000 passengers and 900 tonnes of cargo in less than four years of operations.

This new order also includes an integrated logistics support package with spare parts for the two aircraft and training for flight crews and mechanics.

This acquisition is in response to the urgent need of the authorities of the Republic of Mali to have permanent air transport capacity within a very short timeframe, providing a vital link supporting operations and actions for the development of isolated areas in the northern regions of the country. Bernhard Brenner, Head of Marketing and Sales at Airbus Defence and Space, said: “This repeat order demonstrates the excellent capabilities and performance of our aircraft. The C295 is becoming the 21^stcentury standard tactical airlifter in Africa with 37 aircraft ordered in the region, from Algeria, Egypt and Ghana to Ivory Coast, Burkina Faso and Mali.”

Delta Only U.S. Airline to Block Middle Seats Through March 30, 2021

November 22, 2020 / WIL BALDWIN

The health and safety of our customers and employees remains our top priority. The Delta CareStandard encompasses more than 100 protective measures, such as sanitizing every flight, a comprehensive employee COVID testing program, and the use of industrial-grade HEPA filters that extract more than 99.99% of particles, including viruses. Read more about the Delta CareStandard.

Taking the Stress Out of Flying

Delta is making it easier to plan and book your next trip.

Delta launched a new interactive map on delta.com that gives customers the power to search, view and click-to-book their desired destination all in one place, giving full control and a better understanding of current travel restrictions and what to expect upon arrival.

The data is curated from government agencies and the International Air Transport Association to provide detailed insight into quarantine and testing requirements, travel forms and paperwork, local health information, local COVID-19 guidelines, and links to necessary forms and applications needed prior to travel.

In addition to a new trip planning tool, we’re offering greater flexibility if you ever need to change your plans, including:

No change fees for a U.S. domestic ticket or domestic award ticket, excluding Basic Economy fares.
No change fees for all domestic and international tickets purchased through Dec. 31, 2020, even if scheduled to travel next year.
Extending the use of travel credits through December 2022 for travel originally scheduled to depart before March 31, 2021 (if the ticket was purchased before April 17, 2020).

Boeing Says More Freighters Needed to Support Global Supply Chains

November 17, 2020 / WIL BALDWIN

Boeing [NYSE: BA] today released its biennial World Air Cargo Forecast (WACF), reflecting COVID-19 impacts and opportunities as well as substantial long-term demand for freighters over the next two decades.

Enabled by a rebound in global trade and long-term growth, the WACF forecasts demand for 2,430 freighters over the next 20 years, including 930 new production freighters and 1,500 freighters converted from passenger airplanes.

According to the new forecast, world air cargo traffic will grow at 4% per year over the next 20 years. This growth is influenced by trade and growing express shipments to support expanding e-commerce operations. With these developments and the proven need for dedicated freighter capacity to support the world’s transportation system, the global air cargo fleet is expected to grow by more than 60% through 2039.

“Freighter operators have been in a unique position in 2020 to meet market requirements for speed, reliability and security, transporting medical supplies and other goods for people and communities around the world,” said Darren Hulst, vice president of Commercial Marketing. “Looking ahead, dedicated freighters will be even more critical to compete in air cargo markets; they carry more than half of air cargo traffic, and airlines operating them earn nearly 90% of air cargo industry revenue.”

In addition to projecting long-term demand for freighters, the WACF provides insights into air cargo performance during the pandemic, including the following:

– E-commerce, which was growing at double-digit rates prior to the pandemic, has accelerated its impact on the air cargo market as more businesses shifted to online selling platforms. Year to date through September, express carriers increased traffic by 14%

– Passenger belly cargo, which in 2019 accounted for about half of the world air cargo capacity, was significantly reduced when airlines parked thousands of planes. Freighter operators responded by operating above normal utilization levels, and traffic for all-cargo carriers grew 6%

– So far in 2020, approximately 200 airlines used more than 2,000 passenger widebody aircraft for cargo-only operations to generate cash flow and support global supply chains. These passenger freighters have taken up some of the capacity shortfall and, in some cases, generated quarterly profits for carriers despite minimal passenger operations

Mercedes-Benz Berlin Plant Boss to Join Tesla

November 11, 2020 / WIL BALDWIN

FRANKFURT (Reuters) – The head of the Berlin engine plant run by Mercedes-Benz has defected to rival Tesla <TSLA>, German union IG Metall said on Wednesday, calling on employees to protest over his departure.

IG Metall declined to name the head of the plant, which has been run by Rene Reif, one the most experienced manufacturing executives at Mercedes-Benz who helped expand manufacturing capacity for Daimler <DAI> in China.

Reif used to be head of engineering and manufacturing at Beijing Benz Automotive Co. Daimler’s Chinese joint venture, which has a manufacturing capacity of around 480,000 cars and started building the electric Mercedes-Benz EQC last year.

Tesla declined to comment on whether it had found a new manager for a Gigafactory being built on the outskirts of Berlin but the electric carmaker is on a global manufacturing expansion push, building or expanding new factories in Texas, Germany and China.

Last month, a source told Reuters that a Tesla manager who oversaw the construction of the electric carmaker’s Gruenheide plant, had left his position.

Daimler said on Wednesday that Reif, 57, the manager of its Mercedes-Benz Berlin plant, which makes powertrains, would go into early retirement at the end of the year, at his own request.

Mercedes-Benz Werk Berlin, Deutschland: Montage des Mercedes-Benz V6 Dieselmotor OM642 / Mercedes-Benz Berlin Plant, Germany: Assembly of the Mercedes-Benz V6 diesel engine OM642

German unions have lamented the fact that traditional carmakers are cutting investment into combustion engine technologies as regulators clamp down on emissions and as demand for vehicles is hit by the COVID-19 pandemic.

IG Metall said there would be a protest in front of the Mercedes factory on Thursday and called on Daimler to present solutions that would help to guarantee the future of the plant.

The union said Daimler managers had outlined cost savings plans and union officials fear the Berlin plant’s future is at risk.

Daimler said Clemenz Dobrawa, who currently heads up the Mercedes-Benz battery manufacturing plant in Kamenz, had taken over leadership of the Mercedes-Benz plants in Hamburg and Berlin earlier this month.

“Thanks to his activity as representative in Kamenz, he brings important know-how for the transformation toward electromobility,” Daimler said, adding the Berlin plant would be restructured to serve an ‘Electric First’ strategy.

(Reporting by Edward Taylor and Ilona Wissenbach. Editing by Jane Merriman)

Volaris reports September 2020 traffic results, operating at 84% of 2019 capacity levels

October 6, 2020 / WIL BALDWIN

MEXICO CITY, /PRNewswire/ — Volaris (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico, the United States and Central America, reports September 2020 preliminary traffic results.

Volaris is well positioned for a continuing post Covid-19 traffic recovery and is regaining capacity at a fast pace, due to its strong ultra-low-cost business model focused on the VFR (Visiting Friends and Relatives) and leisure segments in the domestic and US-transborder markets. Volaris also continues to see success from its efforts to convert first time flyers through its bus switching marketing campaigns in Mexico.

In September 2020, capacity measured by ASMs (Available Seat Miles) was 84.2% compared to the same month of last year. Demand measured by RPMs (Revenue Passenger Miles) was 75.6% of last year. This represents an increase of 2.4% versus August 2020. Volaris transported a total of 1.3 million passengers during September 2020, an increase of 4.1% versus August 2020. Booked load factor for September 2020 was 74.4%, an increase of 1.8 pp versus August 2020. No shows were back to normal levels.

Click the link below for the full story with financials!

https://finance.yahoo.com/news/volaris-reports-september-2020-traffic-013900973.html

DHL Shows How Delivery of COVID-19 Vaccine Partners for Success

September 7, 2020 / WIL BALDWIN

– In the paper, DHL evaluates how the transport of vaccines as highly temperature-sensitive product can be managed effectively.

– Global delivery of 10 billion doses of serum needs scaled-up medical supply chains

– White paper identifies critical challenges in COVID-19 logistics

– A framework is provided to tackle future health emergencies beyond COVID-19

With first emergency use authorizations for COVID-19 vaccines expected to be effective in the last quarter of 2020, logistics providers are challenged to rapidly establish medical supply chains to deliver serums of unparalleled amounts of more than ten billion doses worldwide. DHL, working with McKinsey & Company as analytics partner, is therefore publishing a white paper on delivering stable logistics for vaccines and medical goods during COVID-19, and future health crises.

Currently, more than 250 vaccines across seven platforms are being developed and trialed. As COVID-19 vaccines have leapfrogged development phases, stringent temperature requirements (up to -80°C) are likely to be imposed for certain vaccines to ensure that their efficacy is maintained during transportation and warehousing. This poses novel logistics challenges to the existing medical supply chain that conventionally distributes vaccines at ~2-8°C. In the paper, DHL evaluates how the transport of vaccines as highly temperature-sensitive product can be managed effectively to combat the further spread of the virus. The scope of this task is immense: To provide global coverage of COVID-19 vaccines, up to ~200,000 pallet shipments and ~15 million deliveries in cooling boxes as well as ~15,000 flights will be required across the various supply chain set-ups.

Future public health crisis management to include public-private partnerships

Since the outbreak of the pandemic, demand for medical supplies has surged. For example, UNICEF sourced 100 times more face masks and 2,000 times more medical gloves than in 2019. Bringing medical supplies from their distant sources to use at the frontline has been one of the most crucial activities in pandemic response management in the first phase of the health emergency. For PPE specifically, inbound logistics were a major challenge due to geographically concentrated production, limited airfreight capacity and a lack of inbound quality checks. To ensure stable medical supply in a future health crisis, a comprehensive setup of public health crisis strategies and structures needs to be established by governments with partnerships from both public and private sectors.

To kick start the dialogue among the different actors and improve pandemic resilience in medical supply logistics, DHL provides a framework for the cooperation of logistics companies with authorities, politicians, NGOs as well as the life sciences industry. The framework helps to establish measures to ensure the most stable and safe supply chains possible. Besides an emergency response plan, this includes a partnership network, strong physical logistics infrastructure and IT-enabled supply chain transparency. Lastly, a response unit with a clear mandate should be put in place to implement all critical activities at short notice.

Embraer Adjusts Corporate Structure in Response to COVID-19 and Boeing Deal Collapse

September 6, 2020 / WIL BALDWIN

Embraer announced today a 4.5% adjustment to its global workforce, which corresponds to approximately 900 employees in Brazil. The measure stems from the impacts caused by the COVID-19 pandemic on the global economy and the cancellation of the company’s partnership with Boeing. The objective is to ensure Embraer’s sustainability and engineering capacity.

The pandemic particularly affected Embraer Commercial Aviation, which experienced a 75% reduction in aircraft deliveries during the first half of 2020 as compared to the same period last year.

The situation worsened as a result of the duplication of structures associated with the carve out of the company’s commercial aviation business in preparation for the partnership which was terminated at the initiative of Boeing, as well as the expectation that the air transport sector will not recover in the short- or medium-term.

Since the beginning of the pandemic, Embraer has adopted a series of measures to preserve jobs, including collective vacations, reduced working hours, furloughs, paid leave, and three voluntary dismissal plans (VDP). The company has also reduced face-to-face work at its industrial plants with the aim of ensuring the health of employees and business continuity. Around 1,600 employees chose to participate in the VDPs in Brazil.

The company recognizes and appreciates the commitment of those professionals who are leaving the organization and counts on the commitment of all employees to overcome the current crisis and maintain the company’s competitiveness in the global market.

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