Delta confirms C Series order; Alitalia signs MOU with Air Malta

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By admin April 28, 2016 21:00

Delta confirms C Series order; Alitalia signs MOU with Air Malta

Delta Air Lines has finally announced its long-touted C Series order. The carrier has agreed to a firm order for 75 CS100 aircraft with options for an additional 50 CS100 aircraft. Delta Air Lines may elect to convert a number of these aircraft into CS300 at a later date. Based on the list price of the CS100 aircraft, the firm order is valued at approximately US$5.6 billion.

“As we reshape our fleet for the future, the innovative onboard experience of the C Series is a perfect complement for the top-notch service provided every day by Delta people,” said Ed Bastian, Delta’s incoming chief executive. “These new aircraft are a solid investment, allowing us to take advantage of superior operating economics, network flexibility and best-in-class fuel performance.”

“Welcoming Delta Air Lines to the C Series family of operators is a watershed moment for our game-changing aircraft,” said Fred Cromer, President, Bombardier Commercial Aircraft.

With this order, the largest in Bombardier Commercial Aircraft history, Delta becomes the C Series aircraft’s largest customer. Deliveries are scheduled to commence in spring 2018.

Meanwhile, Alitalia CEO Cramer Ball confirmed yesterday that due diligence is underway following a memorandum of understand (MoU) signed with the Maltese Government regarding the acquisition of a 49% stake in Air Malta. He stated: “We will need to establish unequivocally that a deal with Air Malta will not undermine the progress of our three-year turnaround programme, or prejudice our financial position.”

Ball also confirmed that Alitalia is on track to post a profit by 2017. Negotiations are expected to conclude by August 2016. Malta Tourism Minister Edward Zammit Lewis confirmed, in light of the MoU, Air Malta “will cease talks with other airlines and start more detailed discussions with Alitalia”. He added that the airline’s name “would always remain Air Malta”. The MoU document will be tabled in the Maltese parliament on May 25, 2016.

As Etihad’s Alitalia gets back on track and looks to expand, the Middle East giant can count another success to its growing list in airberlin

Etihad Airways president and CEO James Hogan stated yesterday that airberlin has brought returns to Etihad “far in excess” of original expectations. Etihad has received more than US$500 million in total direct revenues from airberlin to date, currently running at over US$150 million per annum. Airberlin, according to Etihad, is contributing cost synergies of more than US$100m and the partnership contributes more than US$630 million per annum to the Abu Dhabi economy.

Yesterday Etihad Airways announced net profit up at US$103 million for the 2015/16 year of account from US$73 million the year before on the back of US$9.02bn of revenue. Earnings before interest and tax (EBIT) for the year was US$259 million. This is the fifth consecutive year of net profitability for the airline. Partnership revenues from the group of airlines that Etihad owns a stake in was also up at US$1.379bn.

Etihad Airways carried a total of 17.6 million passengers in 2015, an increase of 18.9 per cent year-on-year. The growth in passenger volume continued to exceed Etihad Airways’ capacity increase (only eleven new aircraft came into service during 2015/16 taking the fleet to 121 – but of these four were A380-800s, four 787-9s and the rest leased aircraft). Revenue Passenger Kilometres (RPKs), which measure passenger journeys, increased 21.3% to 83.2bn, while Available Seat Kilometres (ASKs), which represent capacity, grew by 21% to 104.8bn. The average network-wide seat load factor was 79.4% for 2015 from 79.2% in 2014.

The huge Etihad codeshare partnership of some 49 airlines, along with 197 interline agreements is, and will continue to be, the main driving force behind rapid growth at the airline

Hogan summed the Etihad view up well when he stated yesterday: “For an investment smaller than the cost of three new aircraft, we have been able to build our global network, attract five million new customers and $1.4 billion of revenues, and share massive cost synergies.  That’s smart business”.

He added: “This is a two-pronged approach. From a strategic level, we are looking for the equity partners to bring network connectivity, generate additional revenues and create economies of scale.  All our partners are delivering on this level. Each partner then has a P&L goal, which is the responsibility of its own management and Boards of Directors.  Many of these, such as Air Serbia, Air Seychelles, Jet Airways and Virgin Australia, are now delivering on this level too.”

admin
By admin April 28, 2016 21:00