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Qantas and Jetstar Meet Strong Domestic Demand with More Aircraft and Flights

The Qantas Group is preparing for continued growth in domestic travel demand, with additional aircraft to be made available for Qantas and Jetstar flying.

Additional E190’s for QantasLink 

The national carrier today announced an expansion of its three-year deal with Alliance Airlines, which provides QantasLink with capacity using Alliance’s Embraer E190 regional jet aircraft and the flexibility to respond to changing market conditions.

The expanded agreement will see the airline increase its options under this deal from 14 jet aircraft to a total of 18. Of this, three are already flying with another five to enter service by October. The E190s will be painted in QantasLink livery and are part of Qantas growing its domestic capacity to at least 107 per cent of pre-COVID levels in FY22.

The first of the 94-seat E190 jets started flying on the QantasLink network last month. The jet’s five-hour range makes it well suited to linking regional centres with smaller capital cities. The introduction of E190s also frees up Qantas’ Boeing 737 aircraft to be redeployed across the domestic network, enabling the airline to launch a number of new routes and add frequencies on existing ones.

Canberra-Adelaide is the latest route to benefit from additional flights made possible by the E190, with frequencies to double from nine per week to 18 per week from mid-July.

Jetstar boosts its Australian-based A320 fleet

Demand for low-cost leisure travel remains strong due to closed international borders and structural changes in Australia’s aviation market. As a result, Jetstar’s Australian domestic network is set to grow to 120 per cent of its pre-COVID schedule in FY22.

To help meet the increased demand, three Airbus A320 aircraft will be temporarily redeployed from Jetstar Asia in Singapore while international travel in the region faces a slower recovery.

These aircraft join the six Airbus A320 aircraft on loan to Jetstar Airways from Jetstar Japan and up to five Boeing 787-8 aircraft set to operate domestically until international travel resumes.

Qantas Adds Seven New Routes, Puts Dreamliner on Domestic Route

Qantas customers can now book seven new domestic routes and travel on more widebody aircraft between major capital cities to help meet strong demand for domestic travel across Australia.

The new routes – Townsville to Adelaide/Melbourne/Sydney, Adelaide to Cairns/Hobart, Sydney-Uluru and Perth-Gold Coast – provide direct connections and reduce travel time for customers. They bring the total number of routes Qantas and Jetstar have added since the start of the pandemic to 45.

Five of the routes will be operated by Embraer E190 regional jets as part of QantasLink’s partnership with Alliance Airlines. The first Qantas flights operated by the 94-seat E190s took off today between Adelaide, Darwin and Alice Springs.

Customers will also see more widebody aircraft with Business Suites on flights between the East Coast capital cities into Perth and Darwin.

Usually used for long haul international flights including Perth-London, the 236-seat Boeing 787-9 Dreamliner will begin operating up to nine Sydney to Perth flights per week.

Widebody Qantas Airbus A330-200 aircraft, which serviced international routes into Asia, will operate on more flights into Darwin from Sydney and Brisbane, and also into Perth from Sydney and Melbourne. These will be added to the A330s already flying on east-west routes.

The additional flying will see Qantas’ capacity exceed 100 per cent of pre-COVID levels in the coming months and the Group’s market share around 70 per cent.

Qantas Domestic and International CEO Andrew David said the new routes would support the growing demand for domestic tourism.

NEW ROUTES 

RouteStart DateReturn flights per weekAircraft
Adelaide – TownsvilleAugust 20213 per weekE190
Adelaide – CairnsAugust 20214 per weekE190
Adelaide – HobartSeptember 2021Up to 7 per weekE190
Sydney – TownsvilleSeptember 20217 per weekE190
Melbourne – TownsvilleSeptember 20217 per weekE190
Perth – Gold CoastSeptember 20213 per weekB737
Sydney – UluruMarch 20225 per weekB737

Fares are available from today with Qantas offering special fares including $139 on Adelaide-Hobart, $179 on Sydney-Townsville and $229 Perth-Gold Coast.  Special fares are available at qantas.com or through Travel Agents, until 11:59pm 27 May, unless sold out prior.

The new flights add to Jetstar’s existing services across six of the routes, providing a range of travel options for Qantas Group customers.

ADDITIONAL WIDEBODY FLYING

Route Added or upgauged flightsAircraftTotal weekly flights (all aircraft)
Sydney-PerthUp to 9 per week787 Dreamliner34
Up to 4 per weekA330
Melbourne-PerthUp to 24 per weekA33037
Sydney-DarwinUp to 7 per weekA33012
Brisbane-DarwinUp to 3 per weekA3309

Qantas Group Announces its Balance Sheet Repair is Underway

A sustained rebound in domestic travel demand, and the performance of its Freight and Loyalty divisions, continues to drive the Qantas Group’s recovery from the impacts of COVID-19.

Based on current trading conditions the Group expects to be statutory free cash flow positive for the second half of FY21. Net debt levels peaked in February at $6.4 billion and are expected to be lower than they were in December ($6.05 billion) by the end of the financial year.

Liquidity levels remain strong with total funds of $4.0 billion, including cash of $2.4 billion and $1.6 billion of undrawn debt facilities as at 30 April 2021.

The total revenue loss for the Group since the start of COVID is now projected to reach $16 billion by the end of FY21 – however the role of domestic travel demand in the Group’s recovery is highlighted by the fact revenue from domestic flying is expected to almost double between the first and second half of this financial year.

Assuming no further lockdowns or significant domestic travel restrictions, the Group expects to be Underlying EBITDA positive in the range of $400 – 450 million for FY21. At a statutory level before tax, the Group is still expecting a loss in excess of $2 billion, which includes the significant costs associated with previously announced redundancies, aircraft write downs and non-cash depreciation charges.

Click the link below to read the full press release!

https://www.qantasnewsroom.com.au/media-releases/7978/

Alaska Air Group Orders Nine New Embraer E175 Aircraft for Operation with Horizon Air

Embraer has agreed the sale of nine new E175 jets to Alaska Air Group and its subsidiary Horizon Air. The E175 aircraft will fly exclusively with Alaska Airlines under a Capacity Purchase Agreement (CPA). The value of the contract, which will be included in Embraer’s second-quarter backlog, is USD 449.1 million, based on current list prices.

Alaska Airlines, a new member of the Oneworld Alliance, currently has 62 Embraer E175 jets in their fleet, operated by Horizon Air and SkyWest Airlines. The 76-seat aircraft will be delivered in Alaska’s livery and three-class configuration, starting in 2022.

Alaska Air Group also announced today a commitment for eight more E175 aircraft with SkyWest Airlines. Once all 17 E175 aircraft announced today are delivered, Alaska Air Group will have 79 E175s in its regional fleet operated by Horizon and SkyWest.

Horizon is converting nine options from its April 2016 contract to firm orders. Added to Horizon’s three remaining firm orders on backlog, they will have a fleet of 42 E175’s flying for Alaska Airlines, when all aircraft are delivered.

The E175 has been a lifeline for carriers as they are perfectly suited to rebuild frequencies and add incremental capacity to meet rebounding domestic demand. During 2020 it was the first aircraft type to bounce back, achieving 100% of Alaska’s 2019’s schedule by Nov. 2020. Last October, the E175 started replacing larger aircraft on several intra-Alaska routes. Alaska Airlines has also been building its presence in California with the addition of new seasonal routes between cities in the Golden State and Montana with the E175.

Dubai Aerospace Enterprise Orders 15 Boeing 737 MAX Jets

SEATTLE, April 20, 2021 /PRNewswire/ — Boeing [NYSE: BA] and Dubai Aerospace Enterprise (DAE) today announced the aircraft lessor is growing its 737 MAX portfolio with an order for 15 737-8 jets. DAE had been investing in the 737 MAX by buying jets from existing customers and leasing them back to the carriers. The new order is DAE’s first direct 737 MAX purchase from Boeing as it modernizes its portfolio for better economic and environmental performance.

The order will appear on Boeing’s Orders and Deliveries website once finalized.

Firoz Tarapore, Chief Executive Officer of DAE, said: “We are delighted to deepen our already strong relationship with Boeing. Including this order, we own and manage 162 Boeing aircraft. An increasing number of global aviation regulators are returning the MAX to the skies. We are confident in the success of these aircraft as domestic and regional air travel are seeing strong signs of recovery.” 

The new purchase is DAE’s second investment in the 737 MAX in the past year. In the third quarter of 2020, the lessor signed an agreement with American Airlines to purchase and lease back 18 new 737-8 airplanes. Since the agreement, the lessor has delivered 17 of the jets to the U.S. carrier. DAE previously completed a similar purchase-leaseback deal with Brazilian carrier GOL for five 737-8s.

“DAE has been instrumental in helping its customers realize the operating economics and environmental performance of the 737-8. We are delighted that they have come back to add more 737 aircraft to its growth plan as it positions itself for the recovery in commercial passenger traffic,” said Ihssane Mounir, Boeing senior vice president of Commercial Sales and Marketing. “We are honored by DAE’s trust in the 737 family and we look forward to partnering with them to serve the fleet requirements of airlines around the world.”

The 737-8 is a member of the 737 MAX family which is designed to offer more fuel efficiency, reliability and flexibility in the single-aisle market. The airplane can fly 3,550 nautical miles – about 600 miles farther than its predecessor – allowing airlines to offer new and more direct routes for passengers. Compared to the airplanes it replaces, the 737-8 also delivers superior efficiency, using 16% less fuel and significantly reducing CO2 emissions and operating costs.

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, leveraging the talents of a global supplier base. 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.

Dubai Aerospace Enterprise (DAE) Ltd. is a global aviation services company headquartered in Dubai. DAE serves over 170 airline customers in over 65 countries from its seven office locations in Dubai, Dublin, Amman, Singapore, Miami, New York and Seattle. DAE’s award-winning Aircraft Leasing division has an owned, managed, committed and mandated to manage fleet of approximately 425 Airbus, ATR and Boeing aircraft with a fleet value exceeding US$16 billion. DAE’s Engineering division serves customers in Europe, Middle East, Africa and South Asia from its state-of-the-art facility accommodating up to 15 wide and narrow body aircraft. It is authorized to work on 13 aircraft types and has regulatory approval from over 25 regulators globally. More information can be found on the company’s web site at www.dubaiaerospace.com.

Virgin Australia Group Outlines Growth Plans to Support Tourism Recovery

BRISBANE, 15 April 2021: Virgin Australia Group has announced fast-tracked plans to acquire new aircraft, create more frontline jobs and grow its network to further support domestic tourism.

The recovery efforts include the reintroduction of 10 additional Boeing 737-800 aircraft and the planned return of more than 80 per cent of the airline’s pre-pandemic domestic capacity by mid-June. Network operational changes will also allow the airline to redeploy Boeing 737 aircraft to other parts of its network over the coming months.

After a year of rolling state-based restrictions, pent-up travel demand is supporting the launch of several new and expanded services and frequencies on key leisure and business routes. Virgin Australia Group is committed to maintaining a market share consistent with its pre-COVID position.

Commitment to Jobs

The creation of more roles at the Company will see more than 220 cabin crew return to the skies from the airline’s discontinued long-haul international, ATR regional and Tigerair Australia operations. The new recruits will join one of 15 cabin crew training schools over the next two months. 

In addition, a major recruitment drive to fill more than 150 new cabin crew roles, including an expression of interest for future positions has also begun today, with applications from other Virgin Australia employee groups being assessed as a matter of priority. External expressions of interest can be made via the airline’s careers website.

Fleet and Network

The Company has finalised arrangements to re-introduce 10 Boeing 737-800 aircraft which had previously been operated by Virgin Australia, with further aircraft under investigation. The first three aircraft will join the airline’s mainline fleet this month while the remainder are set to progressively enter service by October.

The Company is finalising wet lease arrangements with Alliance Airlines to operate Fokker 100 services on behalf of Virgin Australia between Brisbane-Alice Springs and Brisbane-Mt Isa from 19 April 2021. The move will allow Virgin Australia to explore more efficient ways of managing capacity and frequencies to support choice and convenience for regional customers.

Using an Airbus A320 aircraft, Virgin Australia Regional Airlines (VARA) will also move to operate select services on mainline routes between Perth-Darwin, Perth-Broome and Perth-Adelaide from next month. These arrangements will support the redeployment of the Boeing 737 aircraft to other markets.

Between now and the June school holidays, the airline will add more than 220 return flights per week to its schedule, offering new and extended seasonal services and expanded frequencies on key business and leisure routes. Trans-Tasman services to Queenstown are set to recommence ahead of school holidays on 18 September 2021.

American Airlines Hits Milestones in Los Angeles Airport Construction Project

FORT WORTH, Texas ― American Airlines (Nasdaq: AAL) is on a journey of building a terminal for tomorrow, a substantial multi-year commitment to modernize our hub at Los Angeles International Airport (LAX) and improve the customer experience at LAX’s two busiest domestic terminals to make traveling as easy as possible.

The airline, which will celebrate 75 years of service to Los Angeles later this year, recently celebrated a significant milestone in its construction journey at LAX, in which team members signed their names onto a piece of history that will prominently live atop of the Terminal 4 and 5 CORE. The CORE is the primary, centralized structure that connects the terminal areas with the screening checkpoint, ticketing and baggage claim areas, as well as the Automated People Mover (ATM) train system, curbside and parking areas.

In a topping out ceremony, team members and leaders from American were joined by executives from Los Angeles World Airports (LAWA) to celebrate the final steel beam being raised into place and secured by its construction partners.

Despite the challenges presented by the COVID-19 pandemic, American has continued operating in both Terminals 4 and 5 alongside its construction partners, who have worked hard to ensure an on-time completion in October 2022.

The new state-of-the-art facility will have more efficient check-in and security screenings to reduce wait times, lessened roadway congestion with the new ATM and include increased seating and power outlets at the gates. The new departure halls will be spacious, and modern signage will make it easier for travelers to comfortably navigate the airport.

Some of the benefits and features of the redesigned terminal experience include:

  • Fully upgraded and modernized Terminal 4.
  • Unified 300,000-plus square-foot, 28-gate complex for Terminals 4 and 5.
  • A spacious new departure hall that allows direct natural sunlight throughout the building to reduce energy consumption.
  • Reconfigured ticket counter and check-in areas to reduce wait times before security screening.
  • Seamless access from check-in area directly to security screening areas.
  • 16 lanes for security screening with automated technology.
  • Transparent design with modern signage to intuitively guide passengers to their gates.
  • Modern, state-of-the-art finishes and restroom facilities.
  • Upgraded amenities at gate areas, including more access to power outlets and world-class dining and retail options.

Lockheed Martin Guided Multiple Launch Rocket System Soars In Flight Test

Dallas, Texas March 4, 2021 – Lockheed Martin (NYSE: LMT) successfully tested its next-generation Extended-Range Guided Multiple Launch Rocket System (ER GMLRS) munition in an 80-kilometer flight demonstration at White Sands Missile Range, New Mexico. During the flight test, the ER GMLRS round was fired from the U.S. Army’s High Mobility Artillery Rocket System (HIMARS®) launcher, built by Lockheed Martin, meeting test objectives. The demonstration confirmed the missile’s flight trajectory performance, range and validated interfaces with the HIMARS launcher and system software performance.

Lockheed Martin has produced more than 50,000 GMLRS rounds and is under contract to produce more than 9,000 new GMLRS unitary and alternative-warhead rockets, more than 1,800 low-cost reduced-range practice rockets and integrated logistics support for the U.S. Army and international customers. The systems are produced at its Precision Fires Center of Excellence in Camden, Arkansas.

For more than 40 years, Lockheed Martin has been the leading designer and manufacturer of long-range, surface-to-surface precision strike solutions, providing highly reliable, combat-proven systems like MLRS, HIMARS, ATACMS and GMLRS to domestic and international customers.

Virgin Australia Opens Lounge of the Future

Virgin Australia has today revealed its Lounge of the future, with the opening of its highly anticipated Adelaide Airport Lounge. Designed by Brisbane’s WMK Architecture, the 283-seat Adelaide Lounge completes Virgin Australia’s network of seven domestic lounges across major airports around Australia. All future Lounge refurbishments around the domestic network will be done in line with this new and fresh design thinking.

The Lounge is true to the Virgin Australia brand, creating a warm, authentic and inviting environment for frequent flyers.

The contemporary design includes a breeze block feature wall upon entry, with canopy ceilings, before ceramic tiling leads guests into a large light-filled space, with the centre walkway leading guests to numerous dining and seating areas. Ambient lighting, bright greenery and Australian sustainable furniture completes the Lounge, making it a relaxed, inviting and uncomplicated place, to refresh and recharge in a delightfully Virgin way.

Virgin Australia CEO Jayne Hrdlicka said the new lounge was the first of many new and exciting products for customers following the airline’s re-launch.

Adelaide Lounge features

The Coffee Bar: An eye-catching central café seating area, transforming from a place to unwind over a coffee during the day, turning into a wine bar at night.

The Cellar Door Hub: With some of Australia’s most awarded wineries on the doorstep of Adelaide Airport, Virgin Australia has created a feature space for South Australian wineries to bring their cellar door to the Lounge for seasonal wine tasting.

Distinct dining areas: Separate dining areas with diverse functionality have been built adjacent to servery areas to cater to all guest’s eating preferences, including large social tables, and banquette seating for more private dining.

Grupo Viva Aerobus Reports Financial Results for Fourth Quarter and 2020

Mexico City, February 22, 2020. – Grupo Viva Aerobus today reported operating and financial results for 4Q20 and full year 2020, reflecting a recovery trend, amid the challenges of the pandemic, which began in the third quarter. This performance is the result of an adequate financial management, a strict expense control protecting the company’s liquidity and a responsible operational recovery which prioritizes health and safety for all passengers and staff.

During the 4Q, Viva Aerobus led the industry’s recovery, being the first airline in the Americas to resume 100% of its operational capacity, in November. Furthermore, Viva also consolidated as the first Mexican airline to grow its service at the end of the year by increasing its offer (available seats per kilometer) an 11% during December 2020 vs December 2019. In addition, the airline closed the year with 131 routes (103 domestic and 28 international), 12 more routes than the ones recorded at the end of 2019.

As a result of this recovery, added to an enhanced flexibility by permanently getting rid of charges for flight changes, Viva registered higher demand, closing 4Q20 with more than 2.9 million passengers, a 59% increase compared to 3Q2020. Moreover, the airline closed December with over one million of passengers registered, a similar figure reported in December 2019, before the pandemic.

This operational and passengers increase boosted the operating revenue to reach 3,237 million pesos in 4Q20, representing a 76.8% growth compared to 3Q20. Total operating revenue was composed 49% by fare revenue (1,589 million pesos) and 51% of ancillary revenue (1,647 million pesos). This revenue scheme represents the possibility that Viva Aerobus gives passengers to personalize their flights. Therefore, Viva takes care of their economy by offering low prices and giving the opportunity to pay only for what they need.

Due to this sequential increase in revenues, a positive EBITDAR was obtained for the second consecutive quarter, totaling 531 million pesos; this represented a sequential increase of 95% compared to 3Q20. Additionally, liquidity preservation stands out as attested in the cash and cash equivalents balance, recording 2,967 million pesos, a similar figure to the one reported in 3Q20. This reflects an assertive use of cash, taking advantage of an agile operational resumption, the support of the airline’s suppliers and the decisions to eliminate non-essential expenses.

These quarterly results softened the effects of the pandemic in the full year, considering that it was in the first half of 2020 when demand was most affected by the health emergency. Viva Aerobus registered more than 8.1 million annual passengers, a decrease of 32.4% compared to 2019. Consequently, total operating revenues reached 8,221 million pesos and EBITDAR totaled 946 million pesos, a 36.1% and 75.6% decrease, respectively.

To consult the full earnings report, please visit Viva Aerobus investor relations site: https://ri.vivaaerobus.com/en

Financial Indicators (MXN Million)4Q204Q19Ch. %20202019Ch. %
Total Revenue3,2373,728(13.2%)8,22112,874(36.1%)
EBITDAR*5311,122(52.7%)9463,875(75.6%)
EBITDAR Margin*16.4%30.1%(13.7 p.p.)11.5%30.1%(18.6 p.p.)
Operation (loss) income [EBIT]*(427)315(>100.0%)(2,619)935(>100.0%)
EBIT Margin*(13.2%)8.4%(21.6 p.p.)(31.9%)7.3%(39.1 p.p.)
Earnings Before Taxes (EBT)*(791)658(>100.0%)(3,881)579(>100.0%)
EBT Margin*(24.4%)17.7%(42.1 p.p.)(47.2%)4.5%(51.7 p.p.)
Net (loss) income*(558)420(>100.0%)(2,727)469(>100.0%)
Net Margin*(17.2%)11.3%(28.5 p.p.)(33.2%)3.6%(36.8 p.p.)

*Items not comparable with 2019 due to change in the functional currency conducted in 2020.

Operational Indicators4Q20*4Q19Ch. %2020*2019Ch. %
ASKs (million)4,3034,1533.6%11,67015,080(22.6%)
RPKs (million)3,4003,642(6.6%)9,39313,374(29.8%)
Total Passenger (thousands)2,9453,282(10.3%)8,12312,019(32.4%)
Load Factor (%)79.0%87.7%(8.7 p.p.)80.5%88.7%(8.2 p.p.)
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