What is Nyepi Day? And why are there no flights?

Today is Nyepi the Balinese 'Day of Silence' which is celebrated as part of Isakawarsa with tomorrow being Balinese New Years Day.  Although a Hindu festival, Nyepi is observed by all in Bali, a description of it follows

Observed from 6 a.m. until 6 a.m. the next morning, Nyepi is a day reserved for self-reflection, and as such, anything that might interfere with that purpose is restricted. The main restrictions are no lighting fires (and lights must be kept low); no working; no entertainment or pleasure; no traveling; and, for some, no talking or eating at all. The effect of these prohibitions is that Bali's usually bustling streets and roads are empty, there is little or no noise from TVs and radios, and few signs of activity are seen even inside homes. The only people to be seen outdoors are the Pecalang, traditional security men who patrol the streets to ensure the prohibitions are being followed.  Although Nyepi is primarily a Hindu holiday, non-Hindu residents of Bali observe the day of silence as well, out of respect for their fellow citizens. Even tourists are not exempt; although free to do as they wish inside their hotels, no one is allowed onto the beaches or streets, and the only airport in Bali remains closed for the entire day. The only exceptions granted are for emergency vehicles carrying those with life-threatening conditions and women about to give birth.

This effects the following flights to/from Australia today/tomorrow morning

KEY:

JQ - Jetstar

VA - Virgin Australia

GA - Garuda Indonesia

QZ - Indonesia AirAsia

320 - Airbus A320

73H - Boeing 737-8FE(W)

333 - Airbus A330-300

332 - Airbus A330-200

100 - Fokker F100

788 - Boeing 787-8

News round up vlog

Time for another video post, this time rounding up some of the recent news from Air New Zealand, Qantas, Scoot and LAN

QF group lose big

Day two of Australasian Aviation financial announcements saw Qantas announce a record $2.843 billion ($AUD) full year loss.

Qantas has reported a lower than expected full-year underlying loss before tax of $646 million, but booked a statutory loss of $2.8 billion as a result of hefty restructuring charges and writedowns to its fleet.

One of the most notable hits was the historic write down of the international fleet at $2.6b most notably due to an exchange rate of around $0.68 AUD-USD at time of purchase.

Qantas domestic had an underlying profit of just $30m for FY14 down from $365m in FY13, however Qantas International saw the biggest hit with an underlying loss of $497m compared with $246m in FY13

Jetstar had an underlying loss but I will focus on this in a separate post.

Qantas Freight made an underlying profit of $24m down from $36m in FY13, however Qantas Loyalty had the best result with an underlying profit of $286m up from $260m in FY13.

The Qantas Group expects to return to an underlying profit before tax in the first half of FY15 based on the following expectations:

• A target of $300m of Qantas Transformation benefits to be realised in the first half

• A stabilising operating environment, as market capacity growth subsides

• First half fuel costs in line with the first half of FY14

• The repeal of the carbon tax

• Reduced depreciation costs compared with the first half of FY14 

Fleet Changes

There are some interesting changes to the QF fleet coming out of this announcement.

QFi
- Gradual replacement of B747s with A330s on Australia to Asia routes including all SYD/BNE-SIN by Sept 2014
- Early retirement of 4x B747 with the remainder of the non-reconfigured B747s to leave by early 2016
- Push back the options on 50x B787 from 2016 into 2017
- Defer the delivery of the final 8x A380(previously announced)
- Defer the final 3 B787-8 deliveries for JQ (previously announced)

QFd - including QantasLink, Network Aviation, Jetstar and Jetconnect
- reduce turn time for domestic aircraft to improve utilisation
- refurbishment of B737-800 fleet to be completed by mid 2015, provides a total 3% capacity increase
- Early retirement of B767 fleet, to be gone by end of 2014!
- Retirement of Network Aviations fleet of Embraer Brasillia EMB120 effective immediately
- Retire 2x B738 due to increased utilisation, 1 to come from domestic 1 to come from Jetconnect
- Not renew lease on 2x A330-200s which will leave the fleet in early 2016
- 5x A320s ordered for Jetstar have been sold
- 2x QantasLink Q300 will be sold during FY15
- defer order for 21x A320 for Jetstar by 4 years and convert into order for 21x A320neo


Read all of the announcements to the ASX, including the media release, the CEO's address, the Investor presentation and the Fleet Update HERE

Half Year Interim Results The Winners and the Losers

The Winner

Air New Zealand are the big winners today announcing a half year interim normalised earnings of $180M NZD and an increase in passenger revenue, as well as a pre tax Statutory earnings of $197M NZD

The Loser

Qantas have today announced their underlying half year loss of $252M AUD before tax, with an action plan that will see job losses, fleet changes, and sale of terminal leases.

The Qantas changes
Qantas have announced that they have entered an agreement which will see the Brisbane Airport Corporation regain the lease of the Qantas Domestic terminal at Brisbane and related assets for $112M AUD.

Over the next three years Qantas will reduce their workforce by 5000 full-time positions which will include a reduction of 1500 management and non-operational roles, a restructure of line maintenance, as well as the already announced closure of the Avalon maintenance base and Adelaide catering base.  There will also be a reduction of operational roles relating to fleet and network changes, and the CNS flight crew base will close.

Qantas will make a change in timing to their MEL-DXB-LHR services from November 2014 to reduce on ground timing of the A380 in LHR.

Qantas will also end their PER-SIN services in first quarter FY15, while making all BNE-SIN and SYD-SIN services A330 replacing current B744 services.

Fleet Changes

Qantas will look to make savings up selling and differing up to 50 jets, this is broken up as follows;

• Boeing 767-300s - these will all be retired by Q3 FY15, following on from the retirement of the Boeing 737-400 fleet (see previous post)
• This will help Qantas standardise their domestic fleet to mostly 737-800 aircraft with Airbus A330 aircraft flying the East-West flights (SYD/MEL/BNE-PER) as well as peak services on the golden triangle (BNE/MEL/SYD) allowing the A332 fleet to operate International routes replacing B744s
• The 6 non-reconfigured Boeing 747-400 aircraft will be retired by the 2nd half of FY16 leaving just the 9 B744s with the A380 interior product.
• Deferral of the 8 remaining A380 orders (again)
• Deferral of the last 3 JQ B787-8 orders
• Restructring of the JQ A320 order book

Air New Zealand however will be adding aircraft;

• The A320 fleet will grow by 4 in FY14, 3 in FY15 and 2 in FY16 with the B733 retirements continuting with only 7 remaining in FY14, 2 in FY15 and all gone by FY16
• The B787-9s will arrive as follows FY15 3, FY16 3, FY17 2, FY18 2 this allows 3 of the B763 fleet to be retired by FY16 with the remaining 2 leaving in FY 17, while the last 2 744s will depart in FY15
• Two additional B773's will be delivered in FY15, 1 in 2014 and 1 in 2015
• 1 ATR76 will arrive in FY14, 3 in FY15 and the final one in FY16

The Releases

You can read the Qantas release to the ASX HERE and the Air New Zealand release to the NZX HERE, this story is also covered in almost every newspaper and website around.

Qantas hit all the 30's

Qantas have hit all the 30's with their announcement today of the A330 interior upgrade program to occur in Brisbane in the new $30 million dollar hangar while recruiting 30 new apprentice engineers. With each aircraft expected to be in the hangar for 30 days.

Qantas today announced its fleet of 30 Airbus A330 aircraft will have new cabin interiors installed at its Brisbane heavy maintenance and engineering facility.Qantas also announced it is recruiting 30 apprentice engineers, with the majority to be based in Brisbane.Qantas Group Chief Executive Officer Alan Joyce, who was in Brisbane to officially open the $30 million upgrade to the hangar, said today’s announcements further cements Qantas' commitment to engineering and maintenance in Australia.

 This is good news for Brisbane and means spotters will get to see all 10 A333's and 20 A332's from late 2014 through to 2016

Read the full Qantas release HERE