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Allegiant Airlines’ ancillary revenue initiatives among most innovative in the world

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Allegiant is based in Las Vegas, but it has never relied upon the notion of “luck” as part of its business strategy. The airline was born in 1997 and immediately challenged all the rules of how to start an airline.

Allegiant maintains its industry leading margins by distancing itself from competitors, and by being very different from everyone else. This distinctive style includes innovative ways to generate ancillary revenue:

• Allegiant’s Sunseeker Resort development in Florida is projected to contribute ancillary revenue in excess of $6 per passenger on a systemwide basis.

• The carrier’s new family entertainment centers allow it to build deeper customer relationships and capture more leisure spending within Allegiant’s network of smaller cities.

• More than $16 per passenger is generated by baggage revenue policies, which include fees for large carry-on bags, and allow those without large carry-on bags to board first.

• The Allegiant World Mastercard provides a free inflight beer or wine for cardholders and is expected to generate annual earnings (EBITDA) of $50 million by 2020.

• The installment payment option (pay monthly) yields online shopping carts nearly 300% larger than those paid in full.

Travel News | eTurboNews

Ethiopian Airlines launches direct Istanbul flight

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Ethiopian Airlines, the largest Aviation Group in Africa and SKYTRAX certified Four Star Global Airline, is pleased to announce that it has finalized all preparations to launch a direct thrice weekly flight to Istanbul, Turkey as of April 1, 2019.

Istanbul is Turkey’s historic, industrial and financial capital.

The flight to Istanbul will be dispatched as per the schedule below:

Flight

Number Frequency Departure

Airport Departure time Arrival Airport Arrival

Time Sub fleet

ET 0720 MON, WED, FRI ADD 23:05 IST 4:35 ET 738
ET 0721 WED,FRI,SUN IST 1:10 ADD 6:40 ET 738

Regarding the upcoming services, Group CEO of Ethiopian Airlines, Mr. Tewolde GebreMariam, remarked, “It gives us great pleasure to launch flights to Istanbul, connecting Europe’s largest city to the over 60 African destinations we serve, through our hub Addis Ababa. Turkey being one of the fastest growing countries among the emerging economies, availability of seamless connectivity options will facilitate the channeling of investors and enhance business ties between the two regions.

As we forge ahead on the path of growth and success as envisioned in Vision 2025, we will keep opening new routes to all corners of the world bringing Africa ever closer to the rest of the world.”

Istanbul marks Ethiopian’s 19th destination in Europe. Ethiopian is currently serving 119 international destinations across five continents with young aircraft with average fleet age of five years. It will also bring the number of passenger flights the airline operates to European cities to 57 per week.

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Fraport 2018 Fiscal Year: Revenue and Earnings Increase Significantly

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Fraport

Boards propose dividend increase to EUR2 – Outlook remains positive
In the 2018 fiscal year (ending December 31), Fraport AG continued on
its growth path, achieving new records in revenue and earnings.
Supported by strong passenger growth at its Frankfurt Airport home
base and its Group airports worldwide, revenue climbed by 18.5
percent to nearly EUR3.5 billion. After adjusting for revenue related
to capital expenditure for expansion measures at the international
Group companies (based on IFRIC 12), revenue rose 7.8 percent to over
EUR3.1 billion. About two-thirds of this increase can be attributed
to Fraport’s international portfolio – with the airports in Brazil
and Greece, in particular, making a significant contribution.
Fraport AG’s executive board chairman Dr. Stefan Schulte said: “We
are pleased to look back on another very successful year, especially
for our Group airports around the world. Here in Frankfurt, however,
2018 presented challenges due to the constraints in European airspace
and the strong traffic demand. For the medium and long term, we are
very well positioned both at Frankfurt Airport and in our
international business. Moreover, we are laying the foundations for
further long-term growth by implementing our expansion projects.”
Revenue and earnings targets achieved
The operating result (Group EBITDA) climbed markedly by 12.5 percent
to over EUR1.1 billion. The Group result (net profit) rose even
stronger, by 40 percent to EUR505.7 million. This includes earnings
gained from the sale of Fraport’s stake in Hanover Airport, which
contributed EUR75.9 million. However, even without the positive
effects from the Hanover transaction, Fraport already achieved its
revenue and earnings targets. Operating cash flow slightly dipped by
2.0 percent to EUR802.3 million. This was mainly due to changes in
the net current assets related to the reporting date. After adjusting
for these changes, operating cash flow rose by 18.8 percent to
EUR844.9 million. In line with expectations, free cash flow fell
sharply by 98.3 percent, because of more extensive capital
expenditure for Frankfurt Airport and Fraport’s international
business, while remaining in positive territory at EUR6.8 million.
Given the positive business development, the Executive Board and
Supervisory Board will propose to the Annual General Meeting that the
dividend be raised to EUR2.00 per share for the 2018 fiscal year
(2017 fiscal year: EUR1.50 per share).
Passenger traffic rises noticeably at FRA and internationally
Serving some 69.5 million passengers, Frankfurt Airport (FRA)
achieved a new passenger record in 2018 and growth of 7.8 percent
compared to 2017.
CEO Schulte commented: “We are pleased that the airlines have
significantly expanded their flight offerings at Frankfurt Airport
for the second year in a row, thus improving connectivity and
prosperity for businesses far beyond the Frankfurt Rhine-Main Region.
Until the first pier of the new Terminal 3 opens in late 2021, we
will focus on maintaining a high level of service quality at
Frankfurt Airport – while dealing with the constraints affecting the
entire aviation industry. In particular, enhancing the situation at
the security checkpoints will be a top priority for us.”
In response to strong passenger growth, Fraport hired over 3,000 new
staff members at Frankfurt Airport in 2018. Despite the constraints
experienced at some central process points in the terminals during
peak periods – particularly at the security checkpoints – global
satisfaction of passengers with Frankfurt Airport was at 86 percent
in 2018 – thus even posting a slight increase compared to the
previous year (2017: 85 percent). To provide additional space for
security checkpoints, Fraport is investing in an extension to
Terminal 1 for installing seven extra security lanes in the summer of
2019.
Fraport’s international portfolio also posted a significant gain in
passenger traffic during 2018. In Brazil, the two airports of Porto
Alegre and Fortaleza reported a 7.0 percent increase to 14.9 million
passengers in 2018 – Fraport Brasil’s first year of operating these
airports. At the 14 Greek airports, traffic rose by almost 9 percent
to 29.9 million passengers. Antalya Airport in Turkey grew by a
significant 22.5 percent to 32.3 million travelers, a new historic
passenger record.
Outlook: Growth expected to continue
Fraport is forecasting sustained growth at all of the Group airports
in fiscal year 2019. At Frankfurt Airport, passenger volume is
expected to rise between around two and roughly three percent.
Fraport expects consolidated revenue to increase slightly up to
around EUR3.2 billion (adjusted for IFRIC 12). Group EBITDA is
expected to reach a range of around EUR1,160 million and
approximately EUR1,195 million, despite the non-recurring revenue
from the sale of Fraport’s stake in Hanover Airport. The application
of the IFRS 16 accounting standard – which changes the accounting
rules for leases – will not only make a positive contribution to
Group EBITDA, but will also lead to much higher depreciation and
amortization in fiscal year 2019. As a result, Fraport expects Group
EBIT to be in the range of about EUR685 million and around EUR725
million. The company also expects to post a Group result (net profit)
of around EUR420 million and about EUR460 million. The dividend per
share is expected to remain stable at the higher level of EUR2 for
the 2019 fiscal year.
Fraport’s four business segments at a glance
Revenue in the Aviation segment increased by 5.5 percent to slightly
over EUR1 billion. This was due partly to higher revenue from airport
charges resulting from increased passenger traffic at Frankfurt
Airport. At EUR277.8 million, segment EBITDA increased by 11.3
percent year-on-year, while segment EBIT rose 6.5 percent to EUR138.2
million.
Revenue from the Retail & Real Estate segment dropped 2.8 percent
year-on-year to EUR507.2 million. A major reason for this drop was
significantly fewer proceeds from the sale of land (EUR1.9 million in
the 2018 fiscal year versus EUR22.9 million for the same period in
2017). In contrast, parking income (+ EUR8.3 million) and retail
revenue (+ EUR0.8 million) grew. Net retail revenue per passenger
fell 7.4 percent year-on-year to EUR3.12. Segment EBITDA increased by
3.4 percent to EUR390.2 million, while segment EBIT climbed 2.8
percent to EUR302.0 million.
Revenue in the Ground Handling segment rose by 5.0 percent
year-on-year to EUR673.8 million. The strong growth in passenger
traffic resulted, in particular, in stronger revenue from ground
services and higher infrastructure charges. On the other hand,
passenger growth also led to higher personnel expenses at the
FraGround and FraCareS subsidiaries. Accordingly, segment EBITDA
declined by EUR7.0 million to EUR44.4 million. Segment EBIT dropped
considerably by 94 percent, but at EUR0.7 million still remained in
positive territory.
At nearly EUR1.3 billion, the International Activities and Services
segment significantly advanced by 58 percent compared to the previous
year. After adjusting for the EUR359.5 million in revenue related to
IFRIC 12, the segment’s revenue rose by 20.1 percent to EUR931.4
million. This revenue growth received major contributions from the
Group subsidiaries in Fortaleza and Porto Alegre (+ EUR90.9 million),
as well as Fraport Greece (+ EUR53.2 million). Segment EBITDA
increased a noticeable 28.3 percent to EUR416.6 million, while
segment EBIT jumped 40.7 percent to EUR289.6 million.
You can find our 2018 Annual Report and the presentation from the
press conference on our financial statements (as of 10:30 a.m.) on
the Fraport AG website.

MEDIA CONTACT: Fraport AG, Torben Beckmann, Corporate Communications, Media Relations, 60547 Frankfurt, Germany, E-mail: t.beckmann@fraport.de

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Canada’s government officials announce support for victims of Ethiopian Airlines Flight 302

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Today, the Honorable Ralph Goodale, Minister of Public Safety and Emergency Preparedness and the Honorable Chrystia Freeland, Minister of Foreign Affairs, issued the following statement announcing Canada’s support to victim identification efforts following the tragic aircraft accident involving an Ethiopian Airlines Flight.

“On behalf of the Government of Canada, we wish to extend our most sincere condolences to the families and friends of those who perished in this tragic accident.  Our thoughts continue to go out to each of the Canadian families, friends and communities affected by this awful accident.

The situation on the ground is fluid and may continue to evolve rapidly. Canada will remain ready to assist with the ongoing recovery efforts.

To this end, the Government of Canada, through the Government Operations Centre and Global Affairs Canada, is in constant contact with international and local officials to coordinate Canada’s contribution to these efforts, in support of Interpol’s call for assistance. At present, the RCMP has provided a team of three specialized personnel to assist with providing disaster victim identification support.

Four additional Canadian officials have been dispatched to Ethiopia to provide added capacity and expertise as well as support to affected families. Officials from the Embassy and from Global Affairs Canada’s Standing Rapid Deployment Team have been coordinating with local authorities in Addis Ababa. Officials have been supporting family members of Canadian victims who have travelled to Ethiopia, including by sharing updates on the situation, providing information about local contacts and services, and accompanying families to the site of the tragedy.

Canadian officials will continue to work closely with Ethiopian Airlines and local authorities on the gathering and sharing of information in real time with the families, including on questions relating to repatriation.

Friends and relatives in Canada who are in need of assistance should contact the Emergency Watch and Response Centre in Ottawa at +1-613-996-8885 or email sos@international.gc.ca.

On behalf of all Canadians, we are grateful to all nations who have heeded the international call for assistance, and commend the Canadians who will solemnly perform their duties in the aftermath of this terrible tragedy.”

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Air crash experts: ‘Clear similarities’ between Ethiopian and Lion Air 737 MAX disasters

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French air crash investigators are saying that they have found “clear similarities” between last week’s Ethiopian Airlines crash and last October’s Lion Air disaster. Both 737 MAX aircraft plunged nose-first to their doom.

“During the verification process of the FDR (flight data recorder) data, clear similarities were noted by the investigation team between Ethiopian Airlines Flight 302 and Lion Air Flight 610, which will be the subject of further study during the investigation,” the BEA said in a statement.

Ethiopian Airlines Flight 302 nosedived into a field shortly after takeoff last Sunday, killing all 157 people on board. Lion Air Flight 610 plunged into the sea last October, killing all 189 passengers and crew.

In both cases, the 737 MAX’s MCAS system is suspected to be responsible. The system automatically makes adjustments to the tail angle to keep the plane level in flight. However, false sensor readings can repeatedly trigger the system, forcing the plane into a dive.

The BEA investigators found that the sensor readings in both flights were similar.

In the US, a group of engineers with the Federal Aviation Administration and Boeing claimed over the weekend that Boeing downplayed safety concerns surrounding the MCAS system in a bid to bring the 737 MAX to market before rival Airbus launched its own next-generation narrow body aircraft.

The engineers also claimed that the FAA delegated much of the 737 MAX’s safety testing to Boeing itself, and were content to trust the company’s conclusions. Other air safety regulators around the world then certified the MAX 8 based on the FAA’s thumbs up.

The US Department of Transportation is now investigating the FAA’s approval of the aircraft, the Wall Street Journal reported on Monday. Federal prosecutors have reportedly issued a subpoena to at least one person involved in the development of the 737 MAX.

The aircraft remains grounded worldwide after the Ethiopian Airlines disaster. The FAA has said it may take “months” for Boeing to apply the necessary software updates to rectify any problems with the MCAS system.

Travel News | eTurboNews

Air crash experts: ‘Clear similarities’ between Ethiopian and Lion Air 737 MAX disasters

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French air crash investigators are saying that they have found “clear similarities” between last week’s Ethiopian Airlines crash and last October’s Lion Air disaster. Both 737 MAX aircraft plunged nose-first to their doom.

“During the verification process of the FDR (flight data recorder) data, clear similarities were noted by the investigation team between Ethiopian Airlines Flight 302 and Lion Air Flight 610, which will be the subject of further study during the investigation,” the BEA said in a statement.

Ethiopian Airlines Flight 302 nosedived into a field shortly after takeoff last Sunday, killing all 157 people on board. Lion Air Flight 610 plunged into the sea last October, killing all 189 passengers and crew.

In both cases, the 737 MAX’s MCAS system is suspected to be responsible. The system automatically makes adjustments to the tail angle to keep the plane level in flight. However, false sensor readings can repeatedly trigger the system, forcing the plane into a dive.

The BEA investigators found that the sensor readings in both flights were similar.

In the US, a group of engineers with the Federal Aviation Administration and Boeing claimed over the weekend that Boeing downplayed safety concerns surrounding the MCAS system in a bid to bring the 737 MAX to market before rival Airbus launched its own next-generation narrow body aircraft.

The engineers also claimed that the FAA delegated much of the 737 MAX’s safety testing to Boeing itself, and were content to trust the company’s conclusions. Other air safety regulators around the world then certified the MAX 8 based on the FAA’s thumbs up.

The US Department of Transportation is now investigating the FAA’s approval of the aircraft, the Wall Street Journal reported on Monday. Federal prosecutors have reportedly issued a subpoena to at least one person involved in the development of the 737 MAX.

The aircraft remains grounded worldwide after the Ethiopian Airlines disaster. The FAA has said it may take “months” for Boeing to apply the necessary software updates to rectify any problems with the MCAS system.

Travel News | eTurboNews

WestJet suspends 2019 financial guidance over Boeing 737 MAX grounding

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Today WestJet announced that following Transport Canada’s safety notice closing Canadian airspace to Boeing 737 MAX aircraft until further notice, the Federal Aviation Administration’s temporary grounding order and Boeing’s decision to suspend all MAX deliveries to airline customers, it is suspending all 2019 financial guidance provided on December 4, 2018 and February 5, 2019. The financial guidance provided with respect to earnings per share (EPS), return on invested capital (ROIC) and cumulative free-cash flow over the period of 2020-2022 remains in place until further information is known.

Through proactive planning and preparation for a variety of scenarios, including grounding, WestJet enacted its contingency plan immediately and grounded all thirteen of its MAX aircraft within 55 minutes of Transport Canada’s order with only three MAX aircraft outside of its Canadian jurisdiction. WestJet continues to implement and execute its contingency plan to minimize guest disruption and any financial impact. For the remainder of the first quarter WestJet expects it will be able to protect approximately 86 per cent of guests booked on MAX flights and cover approximately 75 per cent of the flights that were intended to operate on the MAX with other aircraft.

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Oman Air climbs to first place in one of Heathrow’s greenest years yet

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Oman Air has landed first place in the latest Heathrow “Fly Quiet and Green” league table, due to its use of ‘Continuous Decent Approach’ which helps to reduce fuel burn and minimise noise by arriving aircraft. This achievement builds on the strides made in the previous quarter (Q3) which saw Oman Air leaping up 26 spots after phasing out their older aircraft and replacing them with the ultra-quiet and green 787 Dreamliners. Oman Air’s drastic improvement shows the impact technology can have on an airline’s environmental performance and the importance of the “Fly Quiet and Green” league – the UK’s first in advocating sustainable action.

The latest Heathrow “Fly Quiet and Green” league table publishes the top 50 busiest airlines at Heathrow on seven noise and emission metrics from October to December 2018. The results show Heathrow airlines have a clear commitment to modernising their fleet and working to adopt techniques which will help to reduce the airport’s impact on local communities. In addition to this public ranking, Heathrow encourages new technology through environmental pricing incentives, which reduce landing charges for airlines operating their greenest and quietest aircraft at our airport. The top environmental performers such as the Boeing 787 Dreamliners and Airbus A350s now make up over a tenth of planes at Heathrow.

Other airlines at the top of the League rankings included British Airways (short haul fleet), which jumped up to second place due to its improved punctuality benefitting both local communities and passengers alike. SAS placed third, moving up three places in the latest table due to the introduction of A320 neos to their fleet. Icelandair earns most improved airline, jumping an astounding 40 places to take the 11th spot. The airline has worked to improve its use of Continuous Decent Approach, whilst sticking more closely to the designated flight paths set for pilots, which assists the provision of predictable respite for local communities.

This news comes shortly after the conclusion of Heathrow’s eight-week Airspace and Future Operations consultation during which local residents were given the opportunity to share their views on the airport’s future airspace design – both for the existing two runways and as part of the proposed expansion. Heathrow’s consultation is part of a nationwide move to modernise the country’s airspace for the first time since the 1960s, potentially boosting punctuality for passengers by reducing the need for routine stacking as well as providing guaranteed respite for the airport’s local communities and reducing airplane emissions.

Matt Gorman, Heathrow’s Director of Sustainability, said:

“As we prepare to expand our airport, we’re working with airlines to encourage fierce competition for the top spot of the ‘Fly Quiet and Green’ league table and it’s brilliant to see more airlines vying for pole position. As airlines modernise their fleets, we’ll also be engaging with local communities to modernise the UK’s airspace, enabling aircraft to more efficiently use the skies around us, increasing punctuality whilst reducing emissions and noise in future.”

Abdul Aziz Al Raisi, Chief Executive Officer, Oman Air said:

“We follow Heathrow’s Quiet and Green league table very closely and it is indeed gratifying to see Oman Air rank first for the fourth quarter of 2018. Moving to the quieter, more efficient Boeing 787 Dreamliner has had a positive impact and shows our commitment to operating the most environmentally friendly aircraft across our growing international network. This is indeed a proud moment to see our efforts recognised by one of the world’s leading airports.”

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