Libyan Wings orders three A350 XWBs and four A320neo’s

By BA Staff

Libyan Wings, a newly launched Tripoli based airline, has signed a Memorandum of Understanding for three Airbus A350-900s and four Airbus A320neo’s.

The carrier is building up its fleet with aircraft orders announced at the 2013 Dubai Airshow.

Libyan Wings is expected to start operations for passenger charter and freight from early 2014.

Wisam Al Masri, Chairman of Libyan Wings said:

“The A350 XWB and A320neo will play a significant role in ensuring that our new airline operates one of the most modern and efficient fleets in the Middle East region moving forward. With these fuel-efficient aircraft we will be able to offer passengers the highest levels of comfort on both long haul and shorter regional routes, while benefitting from the lowest operating costs and best environmental performance."

John Leahy, Airbus Chief Operating Officer Customers said:

"It’s very exciting to see a new airline starting its business today with our efficient, latest generation A320neo and A350 XWB Families. This means that the Airbus product line, from single aisle to widebody clearly meets customer requirements in the world’s most competitive and demanding markets like the Middle East. Whether for short regional services or long intercontinental routes, Airbus has the right products with the lowest operating costs and best in class comfort standards."

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Alaska Airlines debuts Disney-Themed airplane in Seattle

By BA Staff

The newest themed airplane in Alaska Airlines' fleet flew into Seattle-Tacoma International Airport, featuring one of America's most beloved and rusty tow trucks.

Adorned with the familiar images of Disney-Pixar's animated Cars characters Mater, Lightning McQueen, Guido and Luigi, the colorful Boeing 737-800 named "Adventure of Disneyland Resort" celebrates Alaska's partnership with Walt Disney's original theme park.

It is the fifth Disney-themed airplane born out of the successful partnership between Seattle-based Alaska Airlines and Disneyland Resort.

Jeff Butler, Alaska Airlines' vice president of customer service-airports and cargo, and board member of Make-A-Wish Alaska and Washington said:

"Our Disney planes generate a lot of excitement among our passengers young and old wherever they fly. I can't think of a better way to celebrate our strong partnership than to launch this flying invitation to visit Disneyland Resort's newest attraction and Mater's home in Cars Land."

At a special airport event, Mater himself made a satellite appearance from Cars Land at Disney California Adventure Park, providing travelers with updates on the arrival of the plane as it neared Seattle. After the ceremony, the aircraft officially joined the Alaska fleet on a flight to Orange County, Calif., and will then fly throughout the carrier's 65-city network.

Sharon Siskie, Disney Destinations' vice president of travel industry sales said:

"Adventure of Disneyland Resort is a great example of taking beloved, iconic Disney-Pixar characters and bringing them to life in new and unexpected ways. It's been our great privilege to be part of this collaborative effort with Alaska Airlines, and we're delighted that today's inaugural flight will create some very powerful memories for special guests from Make-A-Wish."

Joining passengers flying on Flight 500 were four Make-A-Wish children from Washington and Alaska, ages 3 to 7, and their families, who will spend the next several days at the Disneyland Resort. During their visit, they will be treated to special activities and enjoy overnight accommodations at Disney's Paradise Pier Hotel at the Resort.

Barry McConnell, president and CEO of Make-A-Wish Alaska and Washington said: 

 "Since our inception, we've granted life-affirming wishes to more than 5,300 children in Alaska and Washington and it's only because of the partnerships that we have with companies like Alaska Airlines and Disney."

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Finnair celebrates its 90th anniversary

By BA Staff

Finnair celebrated its 90th anniversary on Friday, 1 November 2013.

 The world’s fifth-oldest airline still in operation, Finnair was established in 1923.

Today, Finnair specialises in flights between Europe and Asia, offering direct connections from Helsinki to over 60 European destinations and 13 Asian destinations.

Over eight million passengers per year fly on Finnair’s all-Airbus fleet.

CEO Pekka Vauramo says:

“We build on a legacy of building better connections between Europe and Asia and our vision of doubling our Asian revenue by 2020."

Finnair celebrated its 90 years of flying in various ways. As one of the special events to mark its jubilee year, Finnair distributed a special Finnair-themed edition of the Donald Duck comic book to all passengers on long-haul flights on Friday, 1 November. Finnair also commissioned a special batch of posters by Finnish graphic designer Erik Bruun to celebrate its 90th anniversary.

As part of the jubilee year, Finnair renewed its service concept and now uses tableware and textiles designed by Marimekko for Finnair on all flights in both Business and Economy Class. (See video below)



In addition, Finnair launched cooperation with two renowned Finnish chefs, Pekka Terävä and Tomi Björck, in September. (See video below)



The entertainment systems of Finnair’s aircraft have also been upgraded, nearly doubling the selection of entertainment on long-haul flights with 72 films and over 150 television programmes available in both Business and Economy class.

Finnair is harmonising its fleet and became the first airline to take delivery of the new Airbus 321 Sharklet aircraft in September. Finnair is also installing new, fully reclining seats in most of its long-haul fleet from January 2014 onwards. See fleet video below.



In spring 2014, Finnair will open a new Premium Lounge at Helsinki Airport. The Premium Lounge will be located next to the existing Finnair Lounge between gates 36 and 37 in the non-Schengen area and will complement its services. As part of the renewal, a sauna and private showers will be opened between the lounges, and a new tax free shop will be opened in front of the existing Finnair Lounge.

Finnair has received international recognition in its anniversary year: Finnair became the first airline to be selected in the Leadership Index of the global Carbon Disclosure Project on carbon dioxide emissions. Finnair is also the only Nordic airline to be awarded four stars by Skytrax, and it has been named Northern Europe’s Best Airline at the World Airline Awards for the last four years. In addition, it was recently named Best European Airline at the annual TTG Travel Awards. Finnair is a member of oneworld alliance, which is formed by the world’s leading airlines.

See more videos from Finnair celebrating various aspects of their 90 years in aviation.

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Two customers sign up for the VIP version of Eurocopter’s EC175 twin-engine, medium-class helicopter

By BA Staff

VIP cabin interior. Image courtesy Eurocopter.

Eurocopter has signed two customers for the VIP version of its EC175, with these bookings coming only six months after the twin-engine, medium-class helicopter was introduced to the upper-end market with a specially designed elegant and luxurious interior.

The two firm orders were announced by Eurocopter today at the U.K. Helitech International exposition in London. Both rotorcraft are to be delivered to the unnamed customers in 2016.

Olivier Lambert, Eurocopter’s Senior Vice President for Sales and Customer Relations said:

“This market response underscores the EC175 VIP’s unparalleled elements of style and comfort. It combines the largest cabin of any medium-sized twin-engine helicopter with a superior level of interior cabin creativity from Pegasus Design’s Peder Eidsgaard, whose worldwide reputation results from his work on business jets and super yachts.”

Features of the EC175 VIP include a unique cabin layout with two seating areas. The forward zone provides a lounge atmosphere with facing club seating position for four passengers, while an aft sofa-style seat comfortably accommodates three passengers. Options include electrochromatic windows, an in-flight entertainment system with audio and video interfaces, and wireless connectivity via satellite communications links.

Eurocopter offers the EC175 VIP in three different styles, all accommodating from six to eight passengers. Cabin outfitting and completion of EC175 VIP helicopters will be performed by Eurocopter at its Marignane, France production and delivery facility, providing the company’s full resources for this top-of-the-line rotorcraft.

The EC175 is Eurocopter’s new medium-class, twin-engine helicopter, offering excellent range, performance and cruise speeds, while also meeting the most demanding operational safety standards. It was developed through extensive consultation with operators and end-users, resulting in an optimized rotary-wing aircraft with the latest state-of-the-art technology.

To date, Eurocopter has received total bookings for 48 EC175s. Certification of the helicopter is targeted for early 2014, with the first customer deliveries following during the year. Eurocopter has the widest range of helicopters tailored for VIP and high-end market operators. Eurocopter is the leader in business and private aviation with 500 helicopters delivered to these sectors during the past five years.

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Delta receives first next generation Boeing 737-900ER

by Devesh Agarwal

Delta Air Lines commenced its single-aisle fleet renewal process when it took delivery of the first next generation Boeing 737-900ER aircraft. The delivery is part of Delta's 100-airplane order placed in 2011.

Delta Air Lines new next generation Boeing 737-900ER N801DZ. Boeing photo. All rights reserved.

Delta's new 737-900ER seats 180 passengers and features the new Boeing Sky Interior. This interior is the latest in a series of enhancements for both airlines and passengers. It introduces new LED lighting and curved architecture that welcomes passengers onboard and creates a greater sense of spaciousness and comfort in the cabin. The interior also features modern, sculpted sidewalls and overhead bins that disappear into the ceiling, yet carry more bags.

The airplane is also configured with B/E Aerospace's modular advanced lavatory system incorporating the company's patent pending Spacewall® technology, which frees up floor space in the cabin, to add up to six incremental passenger seats.

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AirAsia India granted no objection certificate

By BA Staff

AirAsia India today announced that the airline has been granted the no objection certificate by the Ministry of Civil Aviation and will begin the process of obtaining an Air Operating Permit and prepare to kick-start its operations.

AirAsia submitted a request to start a joint venture to begin AirAsia India earlier this year, partnering Tata Sons Limited and Mr. Arun Bathia of Telestra Tradeplace Pvt. Ltd., and was granted a formal approval by the Foreign Investment Promotion Board (“FIPB”) of India two months later in April.

 Mittu Chandilya, Chief Executive Officer of AirAsia India said:

“We are very thankful to the Ministry of Civil Aviation for granting the no objection certificate to us so quickly. This is the fastest an NOC has been granted and with this, we will focus on obtaining the Air Operating Permit.  We will continue with our preparations and get ourselves ready for take-off once the Air Operating Permit is acquired and we look forward towards being one of the dynamic contributors to the development of the Indian aviation industry.”

AirAsia India is confident that it will be able to replicate the success of its counterparts in Malaysia, Thailand, and Indonesia; and enabling people to fly affordably through superior operational performance by emphasizing a focused and disciplined cost structure will tremendously benefit the Indian consumer. Currently, AirAsia India has a fleet of three Airbus A320 aircraft and over 200 members of staff.

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Analysis: Emirates to launch Kabul continues trend of contrarian A340-500 utilization

by Vinay Bhaskara

MEB3 carrier Emirates is launching daily nonstop services to Kabul, its first Afghan destination, from 4th December, 2013. The route will be served using 258 seat Airbus A340-500 aircraft in a 3-class configuration (12F / 42J / 204Y).

Flight Schedules for the new route are as follows:

Route	Depart	Arrive	Duration	Aircraft
Dubai - Kabul	0955	1315	2:50	345
Kabul - Dubai	1530	1800	3:00	345

The route is especially interesting because it is part of a pattern of Emirates' curious utilization of its nine frame Airbus A340-500 fleet. At 1686 kilometers, Dubai - Kabul is an extremely short flight for the A340-500, which is one of the longest range aircraft in the world, with a design range of greater than 17,000 kilometers for the high gross weight (HGW) version operated by Emirates. In fact, the world's longest flight, Singapore-Newark on the A340-500, at 15,345 kilometers. Even when Emirates first bought A340-500s (10 to be exact), it used the type on the longest routes in its network, like Dubai - New York JFK (11,022 kilometers) or Dubai - Sydney (12,039 kilometers). But over time, the A340's role in Emirates' network has shifted. The table and map below show the markets where Emirates operate the A340-500 in September 2013, as well as the market distance in kilometers.

*Note: Al Manama is Bahrain and Mahe is the Seychelles

Market	Distance (km)
Dubai - Amman	2024
Dubai - Bahrain	488
Dubai - Beirut	2143
Dubai - Cape Town	7620
Dubai - Doha	383
Dubai - Entebbe	3723
Dubai - Hyderabad	2548
Dubai - Kabul	1686
Dubai - Kuwait	530
Dubai - Lyon	3548
Dubai - Nairobi	875
Dubai - Riyadh	3311
Dubai - Seychelles	4452
Dubai - Tunis	4452
Dubai - Venice	4435
Dubai - Vienna	4226

Courtesy www.gcmap.com

As the table and map show, Emirates is using the A340-500 on routes that are a lot different than its original design mission. The only route that could even remotely be considered long haul is to Cape Town, and even that is more of a mid-haul route than anything. The majority of the routes are in Europe and the Middle East and can even be operated by narrowbody aircraft.

The A340-500 has fallen out of favor with airlines around the world because it burns lots of fuel on ultra long haul routes relative to its direct competition; the Boeing 777-200LR, of which Emirates operates 10. It is clear that Emirates needs the extra widebody lift, which is why the A340-500s are still in the fleet. It's also possible that the short routes are where the A340-500 loses the least money for Emirates, as the fuel costs are proportionately lower.

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Harbin Composite Manufacturing Centre delivers 1st major A350 part

By BA Staff

Harbin Hafei Airbus Composite Manufacturing Centre (HMC), a joint venture between Airbus and its Chinese partners, has started to deliver elevators for the Airbus A350 XWB programme. A ceremony was held today in Harbin for the delivery of the first ship set of elevators. The elevators manufactured at HMC are delivered to Spain-based Aernnova Aerospace (ANN), who will deliver them to the Airbus plant in Getafe, Spain, where they will be integrated into the A350 XWB horizontal tail plane. ANN is a major supplier of aerostructures to Airbus.

Based on a contract signed by HMC and ANN in 2010, HMC is responsible for manufacturing and assembling the complete set of carbon fibre elevators (an elevator is a movable control surface in the horizontal tail plane that makes the aircraft pitch up or down to increase or reduce its flight altitude).

According to an agreement signed in 2007 between Airbus and the Chinese government, Airbus agreed to allocate five percent of the A350 XWB airframe to be manufactured in China. The work packages to be carried out by HMC are a significant part of the five per cent. 

Rafael Gonzalez-Ripoli, Airbus' China Chief Operating Officer had this to say about the A350: 

“The delivery of the first ship set of A350 XWB elevators by HMC is an important milestone in our long-term partnership with the Chinese aviation industry. The A350 XWB has taken to the sky and the programme is progressing on track. The Chinese have every reason to be proud of the contribution they are making to the A350 XWB."

Geng Ruguang, Executive Vice President of AVIC, the parent company of the majority shareholding Chinese partners of the HMC, said: 

“It’s inspiring for the Chinese aviation industry to be involved in the development and production of the A350 XWB, which is the world’s most advanced and most efficient aircraft, and to become an integrated part of Airbus’ global supply chain. The delivery of the first A350 XWB elevator demonstrates one more step forward of HMC towards its set target. The development of HMC will also constitute a pulling force for the relevant local industries.”

Pedro Fuente, Chief Operating Officer of ANN, said: 

“We at Aernnova are really satisfied with the very effective teamwork model developed together with the Harbin Manufacturing Centre to industrialize and progressively transfer the A350 XWB Elevators. We are impressed by the fast growing capabilities we are seeing every day. Clearly these are great pillars for a long term collaboration and mutual success.”

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VistaJet Selects Jet Aviation to Operate and Manage Global Aircraft Fleet in the United States

By BA Staff

VistaJet, the leading Global business aviation company, and Jet Aviation, a leading business aviation services company, announced today that Jet Aviation Flight Services will operate and manage a U.S.-based fleet of Bombardier Global jets for VistaJet's Flight Solutions Program. Service on the first three aircraft is scheduled to begin in March 2014, with the U.S. fleet expected to grow to 12 all new Bombardier Global jets. The total value of VistaJet's aircraft fleet commitment is U.S. $600 million.

Thomas Flohr, Founder and Chairman of VistaJet, had this to say about the partnership:

"VistaJet offers Global aircraft services unlike any other in business aviation. We take great pride in our heritage as an international company and for the past ten years, we've arranged for corporate leaders, entrepreneurs and private individuals to fly to over 135 countries worldwide. Expanding our Program offering to include the new service operated by Jet Aviation within the United States now makes VistaJet the only truly Global business aviation company. With this announcement, we are redefining the landscape of business aviation."

The first VistaJet aircraft to be operated by Jet Aviation in the U.S. under this new alliance will be based at Jet Aviation Flight Services' Teterboro, New Jersey, facility while additional aircraft may be located at other Jet Aviation U.S. locations depending on demand and seasonal traffic within the country.

Jet Aviation Flight Services is responsible for delivering Jet Aviation's aircraft management and charters services in the Americas. With U.S. based offices currently located in Teterboro, N.J., Van Nuys, Calif., and Chicago, Ill., the company provides services for a fleet of high-quality managed aircraft and was named in Robb Report's "Best of the Best" for charter services for three consecutive years. Jet Aviation currently manages more than 100 aircraft in the Americas.

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PHOTOS and Analysis: A new Indian start-up; Zexus Air?

by Vinay Bhaskara

A report in Ch-Aviation is stating that proposed domestic start-up Zexus Air, to be based at Delhi, is planning to acquire four Embraer E175LR regional jet aircraft (with manufacturer serial numbers [MSNs] 17000277, 17000287, 17000291, and 17000309), as per its application with India's Directorate General of Civil Aviation (DGCA) for an air operator certificate (AOC). The aircraft were previously with Brazilian regional operator TRIP Linhas Aereas, a subsidiary of Azul Brazilian Airlines, the Brazilian low cost carrier (LCC) founded by JetBlue's founder, David Neelman

Not much is known about the startup Zexus Air, except that it would operate on domestic routes, likely with a LCC business model. The carrier has not launched a website, and a quick scan of the airline's Facebook page reveals the following picture of a US Airways E-Jet with Zexus Air titles added via Photoshop or some equivalent. The unprofessional photo below does not re-assure anyone about the viability of Zexus Air's business plan, nor their level of capitalization at this present stage.

Image Credit: Zexus Air

Using Embraer E175 regional jets is a recipe for disaster in the Indian airline industry, thanks to discounts in airport costs for aircraft below a certain weight. These discounts, which apply to turboprops of the same size as the E175, are designed to promote service to Tier II and Tier III Indian cities. But as a side effect of the discounts, regional jet operations in India are simply economically un-viable. For example, regional operator Paramount Airways, who utilized a fleet of Embraer E-Jets, was decimated earlier this decade by competition from Kingfisher and Jet Airways ATR turboprops in the South.

Moreover, the Indian operating environment is anything but conducive to a new start-up airline. Demand is weakening thanks to a poor macro-economic climate, and the existing airlines are already locked into capacity growth thanks to massive aircraft orders. Moreover, seasoned LCC veteran Air Asia is soon to launch an Indian franchise, and even Air Costa, with a similar business model based around regional jets, is set to launch operations within a couple of months. Zexus Air, it would appear, is doomed from the start. 

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Kenya Airways to receive its first Boeing 777-300ER in October

by BA Staff

Kenya Airways is set to receive a Boeing 777-300ER this October to commence revenue service in November. The aircraft, which seats 400 passenger in a 2 class configuration (28J / 372Y), will be the largest aircraft in the airline's fleet to date.

Dr. Titus Naikuni, Kenya Airways Group Managing Director and Chief Executive Officer, had this to say about the aircraft: 

This will be the largest aircraft in our fleet. Our current B777-200ER aircraft has a seating capacity of 322 passengers while this one has 400 seats. It  will give our business a major lift due to its enhanced product quality, excellent range and impressive cargo capacity ( more than 7,000 cubic feet of cargo volume; over 20 metric tons). The Boeing 777-300ER aircraft is a perfect fit for our network expansion plans as it will enable us serve our existing markets much more effectively and facilitate the opening of new long-haul routes in the near future.

Image Credit: Kenya Airways

The Premier World seats include full flat-bed seats with leather foot-rests, laptop stowage, and armrests. They also have a high quality entertainment system to go with 15.4 inch screens, a power socket, and a USB port. The Economy class seats contain articulating seat bottoms for better legroom, four-way adjustable headrests, and 10.6 inch monitors to go with a USB port, power sockets, and an in-flight handset.

This acquisition is part of Kenya Airways 10-year strategic plan dubbed ‘Project Mawingu’ in which the airline targets to increase its fleet size from the current 44 to 107 aircrafts by 2021 and destinations from the current 62  to 115. The new Boeing 777-300ER will commence direct flights from Nairobi to Guangzhou from November this year.

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PHOTOS: Qatar Airways' first A380 has its maiden flght

by BA Staff

Image Credit: Airbus

Middle Eastern carrier Qatar Airways's first Airbus A380 superjumbo took off from Tolouse on its maiden flight to Hamburg on 9th September, where the aircraft will undergo cabin installation before being painted.

Qatar Airways will take delivery of its first A380 sometime early in 2014, becoming the 11th operator of the A380. Qatar Airways currently operates a fleet of 117 passenger aircraft, serving 121 destinations around the globe, with an additional 172 aircraft on order, including 10 A380s (with 3 additional purchase options). Qatar Airways' A380s are expected to seat 517 passengers in a 3 class configuration (8F / 52J / 457Y).

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Maps: Potential United Boeing 787 operations for 2014

by Vinay Bhaskara

Image Credit: United Airlines

With the announcement of thrice weekly San Francisco - Chengdu to commence in June 2014, Chicago-based full service carrier United Airlines has the planned the following long haul routes for its fleet of Boeing 787-8 Dreamliners in 2014.

San Francisco - Chengdu --> 3x weekly
San Francisco - Osaka Kansai --> Daily
Seattle - Tokyo Narita --> Daily
Denver - Tokyo Narita --> Daily
Los Angeles - Tokyo Narita --> Daily
Los Angeles - Shanghai Pudong --> Daily
Houston - Lagos --> 5x weekly

Now in order to properly rotate aircraft from the 787-8's current base at Houston, it would also make sense for United to operate daily Houston-Denver and Houston-San Francisco flights domestically using the 787. Such an operation would fully utilize United's planned fleet of 11 Boeing 787-8s with frame utilization as follows:

1 frame - San Francisco - Chengdu
1 frame - Seattle - Tokyo Narita
1 frame - San Francisco - Osaka Kansai
3 frames - Los Angeles - Tokyo Narita and Los Angeles - Shanghai Pudong (a Houston flight can be added here as well to improve utilization)
2 frames - Houston - Denver and Denver - Tokyo Narita
2 frames - Houston - San Francisco and Houston Lagos
1 frame - Spare

The 787 will be primarily used as a trans-Pacific aircraft in 2014, with six of seven long haul routes focused on Trans-Pacific flights; all from the Western United States. The maps below outline the planned (and proposed domestic) 787 routes for United in 2014. It appears that the 787 has already begun to fulfill its promised role of expanding US-Asia air links as the 767 did on trans-Atlantic flights.

Trans-Pacific

Other

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.

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WestJet orders 65 Boeing 737 MAX

by Vinay Bhaskara

Image Credit: Boeing

Canadian low cost carrier (LCC) WestJet announced today that it has signed a letter of intent (LoI) to purchase 65 Boeing 737 MAX aircraft (40 737 MAX 8 and 25 737 MAX 7) from Boeing, in a deal worth $6.3 billion at list prices.

Deliveries of the 737 MAX will commence from September of 2017, and the order marks a net addition of 50 frames to WestJet's order book, as 15 of the orders have been converted from existing WestJet orders for the Boeing 737NG. WestJet currently operates a fleet of 107 aircraft (103 Boeing 737 NG and 4 Bombardier Dash 8 Q400 turboprops operated for regional subsidiary WestJet Encore), with 123 more on order (65x 737 MAX, 42x remaining 737 NG, and 16 more Q400s for Encore).

WestJet President and CEO Gregg Saretsky had this to say about the order

We are proud to continue our long-standing relationship with Boeing and are thrilled that we will be among the first North American airlines to fly the new 737 MAX in its first year of commercial operation. This pending order reinforces our strategy of maintaining the flexibility in our fleet plan while enabling us to introduce new fuel-efficient technology and enhance our inflight guest experience... Our strong balance sheet allows us the opportunity to support our low-cost business model and contribute to our profitable growth through the renewal of our fleet with a lower operating cost aircraft. 

Said Brad McMullen, Vice-President of North America Sales, Boeing Commercial Airplanes:

We are pleased to see that the 737 MAX will continue the tradition of supporting WestJet's vision to be one of the most successful international airlines in the world. The 737 MAX's efficiency, reliability and passenger amenities will be a successful combination with WestJet's famous customer service.

WestJet expects that a definitive purchase agreement will be signed before 30th September 2013.

The order from WestJet marks a victory for Boeing in the ever heated competition with rival Airbus' A320neo, though an expected one (given WestJet's large fleet of 737NGs). The order brings the 737 MAX to a solid 1,602 purchase commitment (1498 firm orders, 104 MoUs). But the MAX still lags behind the A320neo, which has racked up a massive 2,455 purchase commitments to date (2380 firm, 75 MoU - albeit having been offere for a full year longer than the 737 MAX).

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Sukhoi confirms order for 20 Superjets from Ilyushin Finance Co

Earlier today at the MAKS air show in Moscow, Sukhoi announced that lessor Ilyushin Finance Co (IFC) has ordered 20 Sukhoi Superjet 100 aircraft. Find more details below.

27th August 2013

On August 27 2013 in the framework of the International Aviation and Space Salon МAKS Sukhoi Civil Aircraft Company and Ilyushin Finance Co (IFC) signed two firm contracts for the delivery of 20 Sukhoi Superjet 100 aircraft.

The first contract included five SSJ100 LR aircraft in 103-seat configuration. An increased passenger capacity will be provided by means of slimmer seats installation. The first deliveries are expected at the end of 2015. The customer is still negotiated at the moment.

The second contract for customers in the South-East Asia and the Middle East region was concluded for fifteen Sukhoi Superjet 100 aircraft in its Basic version. The first deliveries are expected in 2015 as well.

"The support provided by the largest financial institutes to Sukhoi Superjet 100 project demonstrates its steady and successful development. Our partners placed the order for two SSJ100 modifications: basic and long range, and we hope that customers will appreciate opportunities provided by the two versions of the aircraft", said Andrey Kalinovsky, the President of the Sukhoi Civil Aircraft Company.

Sukhoi Superjet 100 LR version differs from the Basic in several respects: it can reach 4578 km and has an increased take-off weight – up to 49.45 tons compensated by the strengthened wing. The SSJ100 LR is equipped with a SaM146 engine with a 5% increased thrust compared to SSJ100 Basic version.

The deliveries will be financed through the support of the Russian Government on financing Russian industrial exports and high-tech products. This support is provided by the Government to banks extending credits to customers buying Russian products.

In June 2013 in the framework of the 50th International Paris Air Show (Le Bourget, France) Sukhoi Civil Aircraft Company and Ilyushin Finance Co (IFC) signed the Heads of Agreement (HoA) for the delivery of twenty Sukhoi Superjet 100 aircraft. The HoA now has been converted to firm order.

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Xiamen Airlines finalizes orders for 6 787 Dreamliners

Chinese full service carrier Xiamen Airlines has finalized an order for six Boeing 787 Dreamliners that was initially announced in May of 2011. Find more details below.

Image Credit: Boeing

26th August 2013

Boeing (NYSE: BA) and Xiamen Airlines have finalized an order for six 787-8s. Originally announced by Xiamen Airlines in May 2011, the order is valued at $1.3 billion at list prices. 

"Adding 787s to our all-Boeing fleet is a strategic decision to facilitate our international expansion plans," said Che Shanglun, president and CEO of Xiamen Airlines. "The range and efficiency of the 787 makes it an ideal fit in our new, non-stop international routes."

As China's only all-Boeing fleet carrier, Xiamen Airlines has earned a profit for 27 consecutive years, one of the most consistently successful financial performances in the industry.

"Xiamen Airlines has been a dedicated operator of Boeing airplanes since it was established. We are honored to have earned the trust and confidence that such a longstanding partnership requires," said Ihssane Mounir, vice president of Sales for Northeast Asia, Boeing Commercial Airplanes. "I believe the 787s will further strengthen Xiamen Airlines' network, providing their customers more travel options."

The airline's expanding international network currently focuses on southeast and northeast Asia. With the introduction of the 787 Dreamliners beginning in 2014, the airline plans to launch new long-haul routes from Fujian to Europe, North America and Australia. 

Xiamen Airlines currently operates a fleet of 97 airplanes, including 17 737-700s, 74 737-800s and six 757-200s. The flight network is comprised of 218 domestic routes and 26 international and regional routes.  The airline will take delivery of its 100th Boeing airplane in November 2013. 

Founded in 1984, Xiamen Airlines is headquartered in the coastal city of Xiamen in the province of Fujian. The area boasts a thriving and diverse industrial economy as well as a growing tourism market. 

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Japan Airlines revises its flights and fleet plans for financial year 2013~14

Japan Airlines Group (JAL) today announced revisions made to its flight frequency and fleet plans for the remaining of fiscal year 2013(ending March 31, 2014).

In regards to the airline's domestic network, flight frequencies on select routes will be adjusted to better meet demand as well as the changes in customer travel patterns including seasonal travel patterns in order to further maximize revenue. JAL will also strive to further improve customer convenience by expanding its domestic network.

In regards to the airline's international network, new Boeing 787-8 aircraft will be deployed onto flights between Tokyo (Narita) and Sydney as well as between Tokyo (Narita) and Bangkok to improve cost efficiency as well as to provide customers with updated products and services. In addition, the fully revamped Boeing 777-300ERs (JAL SKY SUITE 777) including the JAL SKY SUITE (named "Best Business Class Airline Seat" at SKYTRAX's 2013 World Airline Awards) will be introduced between Tokyo (Narita) and Los Angeles from November 2013 as well as between Tokyo (Narita) and Chicago from January 2014.

JAL will introduce completely revamped Boeing 767-300ERs (JAL SKY SUITE 767) between Tokyo (Narita) and Vancouver from December 2013 as well as between Tokyo (Narita) and Kuala Lumpur from January 2014.

*The following schedules are subject to government approval.

Domestic Network

Flight Frequency Changes

Route	Details	Date Effective
Haneda = Osaka (Itami)	Increase from 15 to 16 daily round-trip flights	Oct. 27, 2013 ~ Mar. 29, 2014
Haneda = Sapporo	Increase from 16 to 17 daily round-trip flights	Oct. 27, 2013 ~ Mar. 29, 2014
Haneda = Izumo	Increase from 5 to 6 daily round-trip flights	Oct. 27, 2013 ~ Mar. 29, 2014
Fukuoka = Matsuyama	Increase from 7 to 8 daily round-trip flights	Jan. 7, 2014 ~
Okinawa (Naha) = Ishigaki	Increase from 9 to 10 daily round-trip flights	Sep. 1, 2013 ~ Jan. 6, 2014 Feb. 3, 2014 ~ Mar. 29, 2014
Okinawa (Naha) = Okayama	Increase from 1 to 2 daily round-trip flights	Oct. 1, 2013 ~ Mar. 29, 2014(*)
Osaka (Itami) = Fukuoka	Decrease from 5 to 4 daily round-trip flights	Oct. 27, 2013 ~
Sapporo = Hanamaki	Decrease from 4 to 3 daily round-trip flights	Oct. 27, 2013 ~ Mar. 29, 2014
Kagoshima = Matsuyama	Decrease from 2 to 1 daily round-trip flights	Jan. 7, 2014 ~

(*) Flight frequency will be back to 1 daily round-trip flight during the following period:

Oct. 15,20,21,27,28,30; Nov. 8~10,26,28; Dec. 1,3,5,7,8,10 ~12; Jan. 17~25,27~31; Feb. 1,2,4

International Network

Boeing 787-8 will be introduced onto the following routes

Boeing 787-8 configured with the JAL SHELL FLAT NEO in Business Class will be introduced between Tokyo (Narita) and Sydney as well as between Tokyo (Narita) and Bangkok.

Route	Aircraft Type	Date Effective	Remarks
Narita = Sydney	787-8	Dec. 1, 2013 ~	JL771/JL772(JL772 from Dec. 2, 2013)
Narita = Bangkok		Dec. 2, 2013 ~	JL707/JL718, 4 among 7 weekly round-trip flights (JL718 from Dec.3, 2013)

*The type of aircraft might be changed due to the delivery schedule of Boeing 787-8.

Other aircraft type changes

JAL also aims to further improve the quality of its products and services offered on other routes, on all 3 daily round-trip flights operated between Tokyo (Haneda/Narita) and Bangkok, an improved JAL Business Class will be offered including the JAL SHELL FLAT SEAT installed on Boeing 777-200ERs, and JAL SHELL FLAT NEO installed on Boeing 787-8s.

Route	Aircraft Type/Date Effective	In-flight Service	Remarks
Haneda = Bangkok	From 767-300ER to 777-200ER /Dec. 1, 2013 ~	Business Class: JAL SHELL FLAT SEAT	JL33/JL34*1
Narita = Bangkok*2	From 767-300ER to777-200ER,787-8*3 /Dec. 1, 2013~	Business Class: JAL SHELL FLAT SEAT(777-200ER) JAL SHELL FLAT NEO(787-8)	From Narita to Bangkok: JL717/Daily/777-200ER JL707/Mo,Tu,Th,Sa/787-8 JL707/We,Fr,Su/777-200ER From Bangkok to Narita: JL718/Mo,Th,Sa/777-200ER JL718/Tu,We,Fr,Su/787-8 JL708/Daily/777-200ER

*1 Premium Economy service will be provided on JL33/JL34 from Dec. 1, 2013.

*2 Among 14 weekly round-trip flights, 10 round-trip flights will be operated with Boeing 777-200ER, 4 round-trip flights will be operated with Boeing 787-8. Premium Economy service will be provided on flights with Boeing 777-200ER.

*3 The type of aircraft might be changed due to the delivery schedule of Boeing 787-8.

Flight frequency changes

Flight frequency will temporarily decrease in response to the passenger demand

Route	Details	Date Effective	Remarks
Narita = Beijing	Decrease from 14 to 7 weekly round-trip flights	Nov. 25 ~ Dec. 8, 2013	JL863/JL864 decreased

Improving the quality of products and services on Europe, North America and Southern Asia routes

JAL is now gradually introducing fully revamped cabin which are both spacious and functional on its Boeing 777-300ERs (JAL SKY SUITE 777) on Europe and North America routes. Additionally, the airline will introduce fully revamped Boeing 767-300ERs (JAL SKY SUITE 767) on middle and long-haul routes.  

                       

1.       Expansion of
JAL SKY SUITE 777                         

JAL SKY SUITE 777 is now available daily between Tokyo (Narita) and New York, London as well as Paris. Moreover, the new configuration will be introduced on routes between Tokyo (Narita) and Los Angeles as well as between Tokyo (Narita) and Chicago.

Route	Aircraft Type	In-flight Service	Date Effective	Remarks
Narita = Los Angeles	777-300ER	JAL SKY SUITE 777 (*1) First Class: NEW JAL SUITE Business Class: JAL SKY SUITE Premium Economy: JAL SKY PREMIUM Economy: JAL SKY WIDER	Nov. 2013 ~	(*2)
Narita = Chicago			Jan. 2014 ~

(*1) For more details on JAL SKY SUITE 777, please visit http://www.jal.co.jp/en/newsky/ss7/

(*2) The actual operating date will be introduced on JAL homepage when it has been decided. 

2.       Introduction of JAL SKY SUITE 767                       

JAL SKY WIDER, which is now being installed onto all Boeing 777-300ERs will also be installed on Boeing 767-300ERs. Highlights of the JAL Economy Class seat include increased pitch and a slim style seatback design resulting in approximately 10 cm (Max.) more legroom than the present seat pitch. In JAL Business Class, a new 180-degree fully reclining JAL SKY SUITE II seat will be installed, which was designed specifically for this aircraft type. In addition, each seat in the 1-2-1 configuration provides unobstructed aisle access for an undisturbed flight allowing maximum personal enjoyment and a soothing rest.

Route	Aircraft Type	In-flight Service	Date Effective	Remarks
Narita = Vancouver	767-300ER	JAL SKY SUITE 767 (*1) Business Class: JAL SKY SUITE II Economy: JAL SKY WIDER	Dec. 2013 ~	(*2)
Narita = Kuala Lumpur			Jan. 2014 ~

(*1)  For more details on JAL SKY SUITE 767, please visit http://www.jal.co.jp/en/newsky/ss6/

(*2)  The actual operating date will be introduced on JAL homepage when it has been decided.

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Infographic: Etihad fleet compared to Formula 1

Digital marketing agency LBi has created a very interesting Infographic about the fleet of Abu Dhabi based Etihad Airways. Etihad is a key supporter Formula 1 and of the Yas Marina Circuit in Abu Dhabi, so naturally LBi could not help but including a few F1 racing comparisons.

You can download the infographic after it opens in the light box by right clicking.

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Jet Airways to lease three Boeing 777-300ERs to Turkish Airlines

by Devesh Agarwal

Sources within Mumbai based Jet Airways indicate the airline has entered into an agreement with Turkish Airlines to dry-lease three of its Boeing 777-300ER (77W) aircraft for one year. The Indian carrier has a total of ten 77Ws in its fleet.

Since 2008, the carrier has found it difficult to effectively utilise these highly popular aircraft. It has been leasing up to 70% of its 777 fleet to various carriers like Gulf Air, Turkish THY Airlines, and Thai Airways. Boeing India chief Dr. Dinesh Keskar attributes this to Jet's small network in comparison to its competition. (Read Dr. Keskar's exclusive interview with Bangalore Aviation.)

At present the airline has five 77W's on lease with Thai Airways. Three of these aircraft will return by June and July 2013 and will be leased to Turkish Airlnes for a one year period. The other two are expected back from Thai in the fourth calendar quarter of this year. At present indications are that Jet plans to use these aircraft on its own network.

It appears the carrier is bullish on its deepening partnership with Abu Dhabi based Etihad and may want to deploy the high capacity 77Ws on select routes. Jet has been negotiating a 24% stake-sale to Etihad. It recently sold its landing slots at London Heathrow airport to the UAE carrier, a sale many consider as selling the family jewels.

There are reports that Jet plans to extend its code-share agreement with Etihad to include the Mumbai-Brussels-Newark route, and the winter season is the peak demand for the year.

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American Airlines and US Airways to merge in $11 billion deal

American Airlines and US Airways officially announced their expected merger yesterday. Press release is below.

American Airlines, US Airways combined route map 

AMERICAN AIRLINES AND US AIRWAYS TO CREATE A PREMIER GLOBAL CARRIER --
THE NEW AMERICAN AIRLINES

Customers to Benefit from an Expanded Global Network and Investment in New Aircraft, Technology, Products, and Services

Combined Company to Enhance oneworld® Alliance, Offering a Seamless Global Network

Will Improve Loyalty Benefits by Expanding Member Opportunities to Earn and Redeem Miles

Combination Provides Path to Improved Compensation and Benefits with Greater Long-Term Opportunities for Employees of Both Companies

Combined Airline Expects to Maintain All Hubs and Service to All Destinations

Expected 2015 Annual Synergies of More Than $1 Billion, Creating Value for Stakeholders of
Both Companies

Enhances Recoveries for Stakeholders

AMR Stakeholders to Own 72% and US Airways Shareholders to Own 28% of
Combined Company’s Common Stock

Company to Retain Iconic, Globally Recognized American Airlines Brand

Company to Be Headquartered in Dallas-Fort Worth, with Significant Corporate and Operational Presence in Phoenix

FORT WORTH, TX, and TEMPE, AZ, February 14, 2013 – AMR Corporation (OTCQB: AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (NYSE: LCC) today announced that the boards of directors of both companies have unanimously approved a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion based on the price of US Airways’ stock as of February 13, 2013.

Operating under the American Airlines name, one of the most recognized brands in the world, the combined airline will have a robust global network and a strong financial foundation.  The merger will offer benefits to both airlines’ customers, communities, employees, investors, and creditors.  Customers will have access to more choices and increased service across the combined company’s larger worldwide network and through an enhanced oneworld® Alliance, of which American Airlines is a founding member.  With firm orders for more than 600 new mainline aircraft, the combined airline will have one of the most modern and efficient fleets in the industry, and a solid foundation for continued investment in technology, products, and services.

Thomas Horton, Chairman, President and Chief Executive Officer of American Airlines, will serve as Chairman of the combined airline’s Board of Directors through its first annual meeting of shareholders, and will also serve as the combined airline’s representative to the oneworld Alliance, of which he is currently chairman, and International Air Transport Association for the same duration.  Doug Parker, Chairman and CEO of US Airways, will serve as Chief Executive Officer and a member of the Board of Directors.  Mr. Parker will assume the additional position of Chairman of the Board following the conclusion of Mr. Horton’s service.  The Board of Directors will initially be made up of twelve members.  The Board will be comprised of three American Airlines representatives, including Tom Horton, four US Airways representatives, including Doug Parker, and five AMR creditor representatives.

Under the terms of the merger agreement, US Airways stockholders will receive one share of common stock of the combined airline for each share of US Airways common stock then held.  The aggregate number of shares of common stock of the combined airline issuable to holders of US Airways equity instruments (including stockholders, holders of convertible notes, optionees and holders of restricted stock units) will represent 28% of the diluted equity of the combined airline. The remaining 72% diluted equity ownership of the combined airline will be issuable to stakeholders of AMR and its debtor subsidiaries that filed for relief under Chapter 11 (the “Debtors”), American’s labor unions, and current AMR employees.

The merger is to be effected pursuant to a plan of reorganization (the “Plan”) for the Debtors in their currently pending cases under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The Plan is subject to confirmation and consummation in accordance with the requirements of the Bankruptcy Code.

In connection with the merger agreement, AMR has entered into a support agreement with certain unsecured creditors holding approximately $1.2 billion of prepetition unsecured claims against the Debtors.  Pursuant to the support agreement, the creditors party thereto have agreed, subject to certain conditions, to support a plan of reorganization implementing the merger and incorporating a compromise and settlement of certain intercreditor and intercompany claims issues.  Provisions of the support agreement relating to the treatment of prepetition unsecured claims against the Debtors and the treatment of existing equity interests in AMR are summarized further below.

The combined airline will offer more than 6,700 daily flights to 336 destinations in 56 countries.  The combined airline is expected to maintain all hubs currently served by American Airlines and US Airways, resulting in more travel options for customers.  Both airlines expect that the regional carriers they own – AMR Corporation’s American Eagle and US Airways’ Piedmont and PSA – will continue to operate as distinct entities, providing seamless service to the combined airline.  The company will be headquartered in Dallas-Fort Worth and will maintain a significant corporate and operational presence in Phoenix.

“Today, we are proud to launch the new American Airlines – a premier global carrier well equipped to compete and win against the best in the world,” said Tom Horton, Chairman, President, and Chief Executive Officer of American Airlines.  “Together, we will be even better positioned to deliver for all of our stakeholders, including our customers, people, investors, partners, and the many communities we serve.

“The combination of American and US Airways brings together two highly complementary networks with access to the best destinations around the globe and gives us a strong platform to provide our customers the most connected, comfortable travel experience available.  The operational and financial strength of the combined airline is expected to enable continued investment in new products and technologies and will create exciting new opportunities for our people, even as we deliver strong cash flow and sustainable profitability.

“Over the past year, the American team stood tall as we established a rock solid foundation for long-term success through an efficient and effective restructuring.  As part of this process, after months of exhaustive analysis and a thorough review of all alternatives, we concluded that this merger is the best outcome for our company, delivering not only the greatest value for our financial stakeholders, but also positioning us well for sustainable success over the long term.

“This merger provides enhanced potential for full recovery for our creditors.  In addition, I am pleased that we were able to obtain the support of a sizable portion of our unsecured creditors for a plan that provides a recovery of at least a 3.5% aggregate ownership stake in the combined airline for our shareholders.  It is unusual in Chapter 11 cases – and unprecedented in recent airline restructurings – for shareholders to receive meaningful recoveries.  I look forward to working closely with Doug Parker, whom I have known as a friend for more than 25 years, and with the leadership teams of both companies to assure a smooth integration and the creation of a new industry leader.”

Doug Parker, Chairman and Chief Executive Officer of US Airways, said, “Today marks an exciting new chapter for American Airlines and US Airways.  American Airlines is one of the world’s most iconic brands.  The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace.  Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to travel, when they want to go.”

Parker continued, “Today’s announcement is possible only because of the important work carried out over the past year by Tom Horton and the American team.  No one cares more about the long-term success of American Airlines and its people than Tom.  Through a successful restructuring and this merger, Tom and the American team have established an excellent foundation for the new American Airlines to become a premier global airline.  I am grateful for all that Tom has done to ensure that American is in the best position possible for future success and am delighted he has agreed to remain on board to assist with the transition.

“I am particularly pleased for the employees of both US Airways and American.  This merger will create a stronger company, with the path to improved compensation and benefits and greater long-term opportunities for all our employees.  We are grateful to have the support of both companies’ unions and thank them and their leaders for their hard work and vision.  We look forward to a bright future for our employees and enhanced service and choice for our customers.  With today’s announcement, we start becoming one team and one new airline.”

More Choices, Increased Service, and an Enhanced Travel Experience for Customers

The transaction will combine American Airlines’ and US Airways’ complementary flight networks, increasing efficiency and providing more options for customers.  The result for consumers is a highly competitive alternative to other global carriers.  Importantly, the combined worldwide network will offer superior breadth of schedule to high value travelers.

The combined airline is expected to:

• Provide the most service across the East Coast and Central regions of the U.S., including the East Coast shuttle, enhancing the combined carrier’s competitive position
• Expand its presence and further strengthen the network in the Western U.S.
• Bolster American’s industry-leading position in Latin America and the Caribbean
• Enhance connectivity within the oneworld Alliance – including joint businesses with British Airways and Iberia across the Atlantic and with Japan Airlines and Qantas across the Pacific – creating more options for travel and benefits both domestically and internationally
• Serve 21 destinations in Europe and the Middle East
• Maintain current hubs of both American Airlines and US Airways, resulting in more choices for customers
• Improve traffic flows through the existing hubs of both carriers
• Expand service from those hubs to offer increased service to existing markets and service to new cities
• Provide an industry-leading travel experience through innovative initiatives intended to increase comfort and connectivity for all customers
• Improve valuable loyalty program benefits through expanded opportunities to earn and redeem miles across the combined network

In addition, American Airlines’ landmark agreements with Airbus and Boeing, designed to transform the American Airlines fleet over the next four years, will solidify the combined airline’s fleet plan into the next decade.  The combined airline is planning to take delivery of more than 600 new aircraft, including 517 narrowbody aircraft and 90 widebody international aircraft, most of which will be equipped with advanced in-seat inflight entertainment systems offering thousands of hours of programming, inflight Wi-Fi offering connectivity throughout the world, and “Main Cabin Extra” seating with 4-6 inches of additional legroom in the Main Cabin.  The combined carrier’s fleet will also feature fully lie-flat, all-aisle access premium seating on American’s new Boeing 777-300ER aircraft and Airbus 321 Transcontinental deliveries slated for later this year. Similar to US Airways’ Airbus A330 international Envoy service, American will also retrofit existing 777-200 and 767-300 aircraft to include fully lie-flat premium seating in an effort to provide a consistent experience for customers flying on the combined carrier.

Customers can continue to book travel and track and manage flights and frequent flyer activity through AA.com or USAirways.com, and will continue to enjoy all benefits and rewards of the AAdvantage and Dividend Miles frequent flyer programs.  At this time, there are no changes to the frequent flyer programs of either airline as a result of the merger agreement.  All miles in both programs will continue to be honored.  Upon merger approval, additional information will be provided to customers of both frequent flyer programs on any future program updates, including account consolidation or benefit alignment.

Employees to Benefit from Greater Long-Term Opportunities

Employees of the combined airline will benefit from being part of a company with a more competitive and stable financial foundation, which will create greater opportunities over the long term.  Each carrier’s employees will receive reciprocal travel privileges as quickly as possible.  The merger will also provide the path to improved compensation and benefits for employees.

“Together we will combine the proud histories of both airlines and create one team that recognizes the contributions of all employees to our airlines’ great customer service and financial success.  Our future has never looked brighter thanks to the outstanding people of both American Airlines and US Airways,” concluded Parker.

As previously announced, the unions representing American Airlines pilots, flight attendants and ground employees, as well as the union representing US Airways pilots, have agreed to terms for improved collective bargaining agreements effective upon the closing of the merger. In addition, the union representing US Airways flight attendants has reached a tentative agreement that includes support for the merger. The American Airlines unions representing pilots and flight attendants are working with their US Airways counterparts to determine representation and single agreement protocols.

Superior Value for Stakeholders

American Airlines stakeholders and US Airways shareholders are expected to benefit from the significant upside potential of the new combined airline, which is expected to have approximately $40 billion in revenues based upon the combination of each company’s projected 2013 performance.  The combination is expected to deliver enhanced value to American Airlines stakeholders and is projected to be significantly accretive to EPS for US Airways shareholders in 2014.

The transaction is expected to generate more than $1 billion in annual net synergies in 2015, including $900 million in network revenue synergies, resulting predominantly from increased passenger traffic, taking advantage of the combined carrier’s improved schedule and connectivity, an improved mix of high-yield business, and the redeployment of the combined fleet to better match capacity to customer demand.  Estimated cost synergies of approximately $150 million are net of the impact of the new labor combined contracts at American Airlines and US Airways.  The companies expect one-time transition costs for the merger of approximately $1.2 billion, spread over the next three years.

The abovementioned provisions of the support agreement relating to the treatment of prepetition unsecured claims against the Debtors and existing equity interests in AMR under a plan are summarized as follows:

• Holders of existing AMR equity interests will receive an aggregate initial distribution of 3.5% of the common stock of the combined airline on the effective date of the plan, with the potential to receive additional shares if the value of common stock received by holders of prepetition unsecured claims would satisfy their claims in full;
• So-called “double dip” creditors (i.e., holders of prepetition unsecured claims as to which both AMR and American Airlines are obligors, either directly or indirectly) will receive shares of mandatorily convertible preferred stock equal to the full amount of their claims.  These shares will convert into common stock of the combined airline at 30 day intervals during the 120 day period following the effective date of the plan, based on a formula tied to the market price of the common stock of the combined airline;
• So-called “single dip” creditors (i.e., holders of prepetition unsecured claims that are not guaranteed) will receive a combination of shares of the same class of mandatorily convertible preferred stock as the “double dip” creditors will receive and shares of common stock of the combined airline;  and
• American Airlines’ labor unions and other employees will receive an aggregate of 23.6% of the common stock of the combined airline ultimately distributed to holders of prepetition unsecured claims against the Debtors.

The support agreement can be terminated in certain instances, including the failure of the Debtors to achieve certain milestones toward confirmation and consummation of the plan.

Clear Roadmap to Completion

The merger is conditioned on the approval by the U.S. Bankruptcy Court for the Southern District of New York, regulatory approvals, approval by US Airways shareholders, other customary closing conditions, and confirmation and consummation of the Plan.  The combination is expected to be completed in the third quarter of 2013.  During the period between the signing and closing of the transaction, a transition-planning team comprised of leaders from both companies will develop a carefully constructed integration plan to help assure a smooth and sustainable transition.

Tax Benefit Preservation Plan

In conjunction with execution of the Merger Agreement, US Airways also announced today that its Board of Directors has adopted a tax benefit preservation plan designed to help preserve the value of the net operating losses and other deferred tax benefits of US Airways and the combined enterprise resulting from the merger with AMR.  The tax benefit preservation plan, which is effective immediately and will remain in place no longer than the closing of the merger, is designed to reduce the likelihood that changes in the US Airways investor base would limit the future use of the tax benefits by US Airways or the combined enterprise, which would significantly impair the value of the benefits to all shareholders.

As part of the plan, the US Airways Board of Directors has declared a dividend of one common stock purchase right, which are referred to as “rights,” for each outstanding share of US Airways common stock.  The rights will be exercisable if a person or group, without the approval of the US Airways board or other permitted exception, acquires beneficial ownership of 4.9% or more of US Airways’ outstanding common stock.  The rights also will be exercisable if a person or group that already beneficially owns 4.9% or more of the common stock of US Airways, without board approval or other permitted exception, acquires additional shares (other than as a result of a dividend or a stock split).  If the rights become exercisable, all holders of rights, other than the person or group triggering the rights, will be entitled to purchase US Airways common stock at a 50% discount.  Rights held by the person or group triggering the rights will become void and will not be exercisable.  The rights will expire immediately upon the occurrence of certain events, including the closing of the merger or the termination of the merger agreement.  In addition, the certificate of incorporation of the combined company will contain limitations on certain acquisitions and dispositions of shares effective from and after the closing of the merger, also with the objective of preserving the value of net operating losses and other deferred tax benefits.

US Airways shareholders with ownership positions near or above the 4.9% threshold specified in the tax preservation plan are urged to review its terms carefully.  Further details about the plan will be contained in a Form 8-K to be filed today by US Airways with the Securities and Exchange Commission.

Website

Additional information about the benefits of the transaction is available at a new joint website launched by the airlines at www.newAmericanarriving.com. Customers are also invited to learn more at www.aa.com/arriving and www.usairways.com/arriving.

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