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Regional Airlines

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Elite Airways Returns to Long Island While Frontier Enhances Florida Service

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Six ERJ-145 regional jets are joining the eight EMB-120 at Inter-Caribbean Airways of the Turks & Caicos

  https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/   SIX NEW JETS FOR InterCARIBBEAN By Hayden Boyce & Todeline Defralien – The Sun – September 9, 2018       Over 60 airlines have failed in the Caribbean since 1981:  Aero Wings  Carib Aviation  Caribbean Star  RedJet  Trans Island Air 2000  Air Monserrat  Air Caribbean … Continue reading

We had two VLM Airlines, and a joint AOC between Belgium and Slovenia, each with its own AOC, but VLM Airlines (Belgium) with 2 x A320’s under the old Thomas Cook Airlines Belgium AOC, which they bought and VLM (Antwerp) with 5 x F50’s? When the company is confusing, you know the business model is as well. The operation is owned by SHS Aviation (Netherlands) which is 60% Dutch owned and 40% Chinese owned and its business model was confusing as hell from the start. It is why they are now closing VLM (Antwerp), as that old VLM business model did not work before and did not work this time around either. Fokker F-50’s to London City, Aberdeen, Cologne, Rostock, Munich, Marbor and Birmingham and a planned big hub at Maribor, Slovenia from where regular flights to China would take place from, very similar to Air Belgium’s (4 x A340-300) plan to fly to China from Charleroi, and also a confusing business model, flying to China for China’s U-Tour, freighter aircraft, flights to the US, ACMI, now flying for BA, etc.? One thing you spot quickly on a start up is its focus or lack of, if it’s all over the place with its strategy, run! they are not focused, and trying to be everything and anything, is a recipe for failure everytime.

    https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/         RŪTA BURBAITĖ – Aerotime News Hub – 4th September 2018 VLM Airlines (Brussels) unaffected by VLM (Antwerp) liquidation       VLM Airlines (Belgium) is to be dissolved and enter into liquidation. That was the decision made by SHS Aviation (Netherlands), the majority shareholder of SHS Antwerp Aviation … Continue reading

A rare Caribbean airline success story, Turks and Caicos based inter-Caribbean Airways (8 x EMB-120, 4 x DHC-6, 1 x BN2 and soon 2 x ERJ-145’s) under the leadership of Chairman Mr. Lyndon R. Gardiner and CEO Trevor Sadler is planning to set up an AOC in the Dominican Republic with several used ERJ-145’s, as the 26 year old airline continues its impressive Caribbean expansion from Nassau, Havana, Kingston, Tortola all the way to Dominica. This Dominican Republic move would make it the second foreign airline that plans to do so, as two months back Laser Airlines of Venezuela announced it will fill the void left by the demise of PAWA Dominicana. Dominican ownership would be just 35%, it may be enough locally, but under most bilateral air service agreements (BASA) it requires majority ownership and control, so traffic rights could be an issue. No one has yet used the 50 seat regional jets in the Caribbean, though PAWA Dominicana did plan on operating 6 x CRJ-200’s, while fast they have a high unit cost (CSAK) and need a much higher yield to breakeven than what PAWA Dominicana was getting with its MD-80’s, and this will be interesting in a low yield market like the Caribbean.

    https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/       https://en.wikipedia.org/wiki/InterCaribbean_Airways     Foreign airline manages to become Dominican?     ~ and covers routes within the Caribbean (translated)     Eugenio De Marchena Sunday, 26 August 2018     InterCaribbean Turks and Caicos have initiated the process that demands the Dominican State with the aim of becoming a … Continue reading

Regional Express enjoys third consecutive year of growth in 2017 in Australia with the largest Saab 340 fleet in the world (54).

    https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/       anna aero – August 21, 2018         Regional Express (Rex) is a regional Australian operator focused purely on domestic flying in its home market. Rex may mean king in Latin, but it’s Qantas that wears the crown as the largest provider of domestic seats. However regional … Continue reading

The European Court of Justice has said that liability for delayed flights under Regulation EC 261/2004 doesn’t extend to airlines that wet lease/ACMI aircraft and crew to other carriers.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/       Lessors don’t count as “operating air carriers” under Reg 261, ECJ rules News – 05 July 2018 by Naomi Smith       The European Court of Justice has said that liability for delayed flights under Regulation EC 261/2004 doesn’t extend to airlines … Continue reading

The sad Rise and Fall of Curacao based InselAir took another “dubious” twist 2 weeks ago, in line with the ‘disappeared’ $US 97 million in Venezuela “mystery” that brought the airline down in the first place. The the Curacao Government and 51% owner (after a $US18.3 million loan) of what is left of the airline (1 operational Fokker F50), selected One Laser Group LLC of Miami, to be Insel Air’s 49% strategic partner. The Government claims that ‘InselAir is Bankrupt Without One Laser Group’. The Group is to invest $US 11.1 million into InselAir’s revival, yet the problem is, that there is NO information on the company, executives, history, business dealings, press releases, not even a web page, just a Florida based LLC (limited liability company), basically a “shell company with 1 key person. The company claims it is a “conglomerate of companies that invest in various sectors like air freight, logistics in food & pharmaceuticals and oil supply”? whatever! What the hell is Curacao thinking? I am sorry, but I believe this is just another BS airline scam in the works, like the recent BVI Airways, PAWA Dominicana, Baltia Air Lines/USGlobal Airways and others I have covered and exposed. With 4 CEO’s since January, 2017 it says novels about the ‘fiasco’ within InselAir today.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/               Tomas’s Comment:   This industry is never dull, always something and sadly too often I find some funny business going on, as this industry due to its high asset value seems to attract a lot dubious entrepreneurs, executives and … Continue reading

Two of Europe’s biggest regional airlines, Air Nostrum and CityJet aim for closer cooperation , with a combined fleet of 88 aircraft and up to Euro 700 million in revenue from wet lease and franchise contracts they are out to conquer the regional market in Europe? Yet they are both over dependent on 1 major customer each for their survival, CityJet on SAS and Air Nostrum on Iberia Regional, they both have a large fleet of what I call “loser” aircraft programs as CityJet has 7 (+8 on order) of the 95 passenger Russian Sukhoi SSJ100’s, the ONLY operator in Western Europe, and only the 2nd western airline to operate it commercially (after Mexico’s Interjet), its cheap and it is about to get the boot from LH’s Brussels Airlines for poor dispatch reliability! Air Nostrum has 27 of the 60 delivered (just 68 ordered in 8 years of production) 100 passenger CRJ1000’s (a 18.2 meter stretch of the 1970’s CL-600 Challenger business jet), that airlines just don’t want or need, it is a very long tube from the back, and noone is buying it, airlines know best as to what is good and bad, it is why aircraft orders say novels about any aircraft no matter what an OEM says or thinks!

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     July 17, 2018   100 passenger CRJ1000 of Air Nostrum (Spain)   95 passenger Sukhoi SSJ100-95 of CityJet (Ireland)       Tomas’ Comment:   Interesting development, but no surprise, CityJet has been looking to buy other other operators as it looks for M&A … Continue reading

The Caribbean wide aviation reform (aka “Bang On” to some) which targets air service liberalization for better connectivity, high air ticket taxes and high airport charges, which are all holding back the development of a profitable Caribbean air transport system today. The Bahamas alone can have a $415 million gross domestic product (GDP) expansion and the creation of over 16,000 jobs. It estimated that air arrivals to this nation would increase by 1.058 million or 42 percent above baseline, with the majority – 901,035 – coming from abroad and representing the high-spending stopover tourists the Bahamas is targeting. None of this is new, it is old hat for decades, we need new young politicians to step forward and push for REAL changes, instead of talking about them over and over again! Time for big political change like in Barbados 2 months ago! out with old inept ‘dinosaurs’ politicians and in with the new young visionaries that want to make real changes for the betterment of the good people of the Caribbean, no more excuses. Money losing state owned inefficient airlines need to kick the addiction of using public money to stay afloat, swim or sink and make room for private capital to takeover from where the state has failed for 50+ years in the region!

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/       ‘Bang On’ Over $415m Aviation Boost For GDP As of Wednesday, July 11, 2018 – Tribune 242 – By NEIL HARTNELL           #Research showing The Bahamas will enjoy a $415m economic boost if it participates in Caribbean-wide aviation reform … Continue reading

The national flag carrier of Fiji is Fiji Airways, whose history goes back to 1951, and which was until May 2012 known as Air Pacific, and from 2012 it has become a very profitable airline national airline under 2 excellent previous airline executives, American CEO’s Dave Pflieger (Ex-CEO Hawaiian Airlines and after Fiji Airways he went on to Silver Air, Island Air and now RAVN Alaska), German Stefan Pichler (Ex-CEO Thomas Cook AG, Ex-COO Virgin Australia, Ex-CEO Jazerra Airways, Ex-CEO airBerlin and now CEO Royal Jordanian) and now highly regarded and talented South African CEO Andre Viljoen (Ex-Comair, SAA, Ex-CEO Air Mauritius). Fiji Airways has grown its fleet to 12 jets (6 x A330-200, 1 x A330-300, 1 x B737-700, 4 x B737-800 and 6 on order, 1 x A330-300 and 5 x B737-8’s). The airline is part of the Air Pacific Group, which also owns 100% of Fiji Link (1 x ATR-42-600, 2 x ATR-72-600, 3 x DHC-6-300’s to be replaced by 4 x Viking Air’s Series 400 Twin Otters), with the Government of Fiji owning 51% of Air Pacific Group, 46.32% owned by QANTAS and 2.68% ownership spread out between Air New Zealand and the Governments of the Pacific island states of Kiribati, Tonga, Nauru and Samoa.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     FIJI AIRWAYS, THE LITTLE AIRLINE WITH A BIG HEART   Written by Tom Ballantyne July 14, 2018 – June 2018 edition of Australian Aviation.       It’s the little airline with a big heart. In the South Pacific, where history suggests financial success … Continue reading

The Chairman of Estonia’s Nordica resigns. Remember this was the airline that took over Estonian Air routes the very day Eastonian Air shut down (November 8, 2015) as per European Commission orders to give back to the Estonian people the Euro 85 million in illegal aid that was used to keep the struggling national airline alive as it distorted competition. With no money to give back, Estonian Air had to shut down, just like Hungary’s Malev (February 3, 2012) and Cyprus Airways (January 9, 2015) for using illegal state aid. The Estonians learned from the Malev and Cyprus Airways EC ruling on how to circumvent EC rulings, and Nordica (Nordic Aviation Group) was readied and waiting in the wings for 2 months before the EC Ruling with Euro 72.7 million in new Estonian state aid for a “new” state airline. Now it has 18 aircraft (6 x ATR-72-600, 2 x CRJ700 and 10 x CRJ900) and is 49% owned by LOT. Has Nordica and Estonia circumvented EC rules? did they find a way to beat the EC and just let the old national airline collapse and start a new one with no repercussion? You know, all EU states should get out of the airline ownership business, airlines today need to swim or sink and state aid distorts competition, especially with private airlines who need make a return for their shareholders. Time for the EU states to get out of the airline business finally! No more public money for EU airlines, that is what the EC should be aiming for now.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Chairman of the Management Board of Estonian airline Nordica submitted his resignation   July 14, 2018 –  The Nordic Times       Jaan Tamm, Chairman of the Management Board of Estonian airline Nordica, submitted his resignation to the Supervisory Board of Nordic Aviation Group … Continue reading

Smart way for Estonia to avoid illegal state airline support? On November 8, 2015 state owned Estonian Air was forced to shut down after the European Commission declared it cheated with state aid to stay afloat and that it return Euro 84.9 million. Estonia knew this decision was coming and had already decided that the country must have a Estonian airline at all cost and two months before the closure it set up two new public aviation companies, Nordica and OU Transpordi Varahaldus, with Euro 72 million allocated by the state, and screw the EC, they were going to use state aid for another state owned airline to distort and compete with other EU based airlines? Ho wcan the EC allow this, should the Hungarian and Cypriot Governments have put up new money again for a new state airline when Malev and Cyprus Airways was forced into bankruptcy for illegal state aid? The EC needs to get its act together, the Estonians laughed in their face, and started flying their new state owned airline Nordic Aviation Group, the same day estonian Air stopped flying! What was the point? and what is the lesson for other EU state airlines, and where it the protections for privately owned airlines against state owned airlines like SAS, LOT, airBaltic, Croatian Airlines when the EC rulings are circumvented?

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     This article was written and first published on gediminas.ziemelis.com on 13th February 2018   Smart way for Estonia to avoid illegal state airline support?         Tomas’s Comment: A sad story on how the European Commission failed privately owned airlines in the … Continue reading

Possibly the ‘WORST AIRLINE’ in the world today financially, South African based Fastjet Group (once a LCC with 3 x A319’s, ex-Fly540), now just a point to point regional 2 x E190’s, 3 x ERJ145’s. Just received $10 million from shareholders to stay alive, after losing $48 million in 2016 on revenues of $68.5 million (-70% loss margin), and in 2017 it lost $24.5 million on revenues of $46.2 million (-53% loss margin) while it received $72.8 million in new investment in the same year along on top of its $35.2 million in debt. With cash balance down to $3.3 million on June 18, 2018 it was on the verge of collapse, having “burned” $16.7 million in 6 months and the investors have saved its ass again, but WHY? This fastjet has lost $303.4 million since 2012 on revenues of $308.1 million (-98% loss margin), and retained earnings at the end of 2017 were at a negative $338.5 million? its yield ($/RPK) is lower than its CASK, for a 108% breakeven load factor? Yet more money is forthcoming? as are 3 new ATR-72-600s’ to add more capacity and it wants to buy South Africa’s regional airline, Federal Air (aka FedAir, runs 18 x CE-208’s to Beech 1900D’s)? WHERE is the light at the end of the tunnel for this LOSER?

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   July 9, 2018     Tomas’ Comment:   So Fastjet gets another $10 million? this is the troubled airline that lost a ridiculous $48 million in 2016 on revenues of $68.5 million (-70% loss margin), then came in a new team in August 2016 and … Continue reading

Fastjet hits back at media for being to harsh on it, yet while no one can be as bad as Fastjet was in 2016, with an operating loss of $US 63.9m (yes, -48% operating loss margin) operating 3 x A319’s, things have not changed much since August 1, 2017. The airline received $US 72.8m in new investment in 2017 and had an operating loss of $25.3 million and in that 18 months it has burned it all away with a smaller fleet (3 x ERJ-145, 2 x E190)? yes it reduced expenses, off course with smaller aircraft, but burning cash at $4.0m a month one has to really ask is this ‘new’ business model any better? as load factor is 71% and revenue per seat of just $60.90 means its yield is way too low, again another carrier offering LOW FARES, but NOT a LOW COST CARRIER! and PRASK is well below CASK, and they want more money? seriously?

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/       Tomas’ Comment: They can paint a rosy picture, but it has been under a turnaround since August, 2016, so 22 months of restructuring they should be further along in their recovery, but they are not and yes they have down-gauged to much smaller … Continue reading

SUMMARY: NO surprise! Fastjet of South Africa is on the brink of failure, without a cash immediate injection, as cash on hand is down to $US 3.3m, this airline’s LCC business model with A319’s was broken for years, then they abandoned the model for regional jet flying with 3 x ERJ-145’s and 2 x E190’s. With operations in Mozambique (under Solenta Aviation Mozambique), South Africa (“branding licence”? with Federal Airlines), Tanzania (Fastjet Tanzania 49% owned) and in Zimbabwe (FastJet Zimbabwe 49% owned) and still cannot make money, share price fell 70% today, and yet still the airline is valued at $US 29m seriously?

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Fastjet warns it cannot continue without equity raising Airline Economics Daily – June 27, 2018 Tomas’s Comment: This is a sad story, the LCC model was a disaster, in 2016 it lost $US 48m on $US 68.5m in revenue? a -70% loss margin? what kind of business is that? They found a … Continue reading

SUMMARY: The Chairman of the Republic of China (ROC) (aka Taiwan) based Daily Air, has been detained over fraud. It is alleged the airline created fake invoices to get more state subsidies, and at this point no word if there was any ‘irregularities’ with the recent acquisition of 4 x DHC-6 Series 400’s from Viking Air which has a value of $US 30 million. The airline flies into the highly volatile and politicized islands of Penghu, Kinmen, and Matsu, which are claimed by the Peoples’ Republic of China (PRC) which considers the islands and Taiwan, its territory, and makes no bones about the fact the ‘renegade’ province will one day be part of the PRC again, ideally peacefully but by military force if need be. The ROC is now, sadly down to just 17 UN member states that recognize it over the PRC out of 193 UN member states, the tide is turning against Taiwan and its once big aspirations of full independence.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Head of Taiwan’s Daily Air detained over fraud June 21, 2018 Daily Air’s new Viking Air DHC-6 Series 400 Twin Otter     The Chairman of Daily Air Corporation (4 x DHC-6 Series 400 from Viking Air and 2 x Do228-212), a state-subsidized domestic airline, serving several of the offshore islands of … Continue reading

SUMMARY: Canada’s PAL Aerospace, owned by Winnipeg based Exchange Income Corporation (EIC), is waiting for Guyana’s government approval to work with local operator Roraima Airways to provide aerial surveillance/patrol flights to the emerging oil and gas industry off shore.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/     PAL Aerospace not yet in operation in Guyana-will not be working without gov’t approval, Gouveia says Guyana New – June 20, 2018     PAL Aerospace King Air 200 MPA (maritime patrol aircraft), the aircraft that put Provincial/PAL on the map for MPA ————————————————————————————————————————     Tomas’s Comment:   PAL Aerospace … Continue reading

After 8+ years, the Sukhoi SSJ100 program still struggles with just 125 in service, now launching their new 75 seat SSJ75 to take on the E175-E2, MRJ90 and CRJ900, while a SSJ130 is in the works with 115 seats to take on the E190-E2 and the CS100? just can’t compete as latest orders from small & weak, sanctioned or Russian airlines shows (Aero Mongolia, S7, Iran Air Tours and Aseman Airlines)

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/ READ: Several previous articles on this site on the Sukhoi SuperJet Sukhoi SuperJet from Russia, with hope CAPA- June 19, 2018   Tomas’s Comment: Since now 86 months since the 1st SSJ100 was delivered to launch customer Armavia (Armenia) which took 1 of 2 on order on April 21, 2011 and went bust … Continue reading

Exchange Income Corporation (EIC) of Canada owns several regional airlines in Canada and its stock and financial performance seems to be going up and up. Take a look at the attached PDF Report “Mayday-EIF-Dividend”, a critical overview of the company and its actions, its very interesting. I have included latest EIC financial report in PDF for your preview. Nothing is black and white in this world, most things are in the “grey” zone, always good to get two sides of any story. I look forward to any feedback or comments by those with any info on this matter.

The critical article is written by an unknown author, who obviously knows EIC, now how truthful it is I do not know, but raises questions for sure, though we will never know the real truth.   Mayday-EIF-Dividend (1) (1) EIC_Package_-_v6_FINAL_20171108181204

SUMMARY: The Caribbean is a “graveyard” for airlines over 40 in the past 30 years, with 6 government owned airlines still flying and still burning taxpayers money, destined to never make money because they never change, till now. Cayman Airways, owned by the British Overseas Territory of the Cayman Islands has been changing quietly for years, reducing its debt, modernizing its fleet with 4 x B737-8 (Max8’s), but still dependent on $20+M per year from the government. A new modern fleet will help reduce operating costs but lease rates will be 6 times more than the B737-300’s, and new routes like the latest to Roatan, Hondurans are a good sign of expansion. It is at least a change, the other 5 government owned airlines are ‘business as usual’, politicians sticking their noses into everything they don’t understand, no new initiatives, no new strategy, no new leadership, just sitting around their desks “doing the same things over and over again expecting different results” (Einstein’s definition of insanity) and it applies so well to these 5 perpetual money losers. Only radical change will bring about a brighter future for Government owned Caribbean airlines, its time for surgery to revive them or its time for euthanasia, and cut off their life support (aka taxpayers money) ? one or the other, but things cannot keep going on usual, at some point creditors will have had enough, and then its THE END.

I have written about the Caribbean airline fiasco for years, you can read previous Blog articles on LIAT, Surinam Airways, InselAir, etc.by clicking on State Owned Airlines (under Categories) For many years I have written about the plight of Caribbean airlines, and the infamous region I call a “graveyard” for airlines. Yes, the list of … Continue reading