Boeing's design and manufacture of its cutting-edge 787 jetliner is safe despite the plane's many problems since its rollout, including a fire that forced a redesign of the plane's batteries, according to a report issued jointly Wednesday by the Federal Aviation Administration and the aircraft maker.
The yearlong review concluded "the aircraft was soundly designed, met its intended safety level, and that the manufacturer and the FAA had effective processes in place to identify and correct issues that emerged before and after certification," the agency said in a statement.
The report also makes several recommendations for further improvements by Boeing and FAA.
FAA Administrator Michael Huerta asked for the review in January 2013 after a lithium-ion battery caught fire on a 787 parked at Logan International Airport in Boston. A battery aboard another 787 failed less than two weeks later.
The 787, Boeing's newest and most technologically advanced plane, is the first airliner to make extensive use of lithium-ion batteries. Since the FAA didn't have safety regulations for those batteries as installed equipment in planes when the 787 was designed, the agency and Boeing jointly developed the special safety conditions the plane's battery system should meet.
Top 10 Small Cap Companies To Watch In Right Now: Allegiant Travel Co (ALGT)
Allegiant Travel Company, incorporated on April 4, 2006, is a leisure travel company focused on providing travel services and products to residents of small, underserved cities in the United States. The Company operates a passenger airline marketed primarily to leisure travelers in small cities, allowing it to sell air transportation both on a stand-alone basis and bundled with the sale of air-related and third party services and products. In addition, it provides air transportation under fixed fee flying arrangements. The Company provides scheduled air transportation on limited frequency nonstop flights between small city markets and leisure destinations. As of February 1, 2013, its operating fleet consisted of 58 MD-80 aircraft and six Boeing 757-200 aircraft providing service on 191 routes to 85 cities including 13 leisure destinations and 72 small cities and including cities served seasonally. In January 2012, the Company took ownership of two MD-80 aircraft. In October 2012, the Company announced the formation of Allegiant Systems, a joint venture with AvIntel and Lixar IT.
The Company provides unbundled air-related services and products in conjunction with air transportation for an additional cost to customers. These optional air-related services and products include use of its Website for purchases, use of its call center for purchases, advance seat assignment, baggage fees, priority boarding, its own travel protection product, change fees, food and beverage purchases on board and other air-related services. The Company offers third party travel products, such as hotel rooms, ground transportation (rental cars and hotel shuttle products) and attractions (show tickets) bundled with the purchase of its air transportation.
The Company provides air transportation through fixed fee agreements and charter service on a seasonal and ad-hoc basis for other customers. As of February 1, 2013, its operating aircraft consisted of 58 MD-80 aircraft and six Boeing 757-200 aircraft. D! uring the year ended December 31, 2012, the Company has entered into purchase agreements to acquire seven Airbus A320 aircraft and operating lease agreements for an additional nine Airbus A319 aircraft.
The Company competes with AirTran, Frontier, Spirit, Southwest, US Airways, Alaska Airlines, Horizon Air, Delta, Xtra, United and American.
Advisors' Opinion:- [By Sean Williams]
The comforting fact about many of these charges, if there is one, is that they're usually optional. You don't have to buy a $3 bottle of water from Spirit Airlines (NASDAQ: SAVE ) or pay $17 to $25 for a pillow and blanket from Allegiant Travel (NASDAQ: ALGT ) if you don't want to -- and they're often confined to a single airline. However, one charge is slowly infiltrating the sector that may soon become commonplace and promises to be a game-changer -- namely, the carry-on baggage fee.
- [By Seth Jayson]
Allegiant Travel (Nasdaq: ALGT ) reported earnings on July 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Allegiant Travel met expectations on revenues and missed estimates on earnings per share. - [By Adam Levine-Weinberg]
Allegiant Travel (NASDAQ: ALGT ) has become one of the most successful airlines in the U.S. (albeit not a very well-known one) by attacking a distinct niche: leisure travelers going from small cities to warm weather destinations. Focusing on markets where it does not face any competition has helped Allegiant generate margin performance near the top of the airline industry for the last several years.
Best Airline Companies To Buy Right Now: Latam Airlines Group SA (LFL)
LAN Airlines S.A. (LAN), incorporated in 1983, is the international and domestic passenger airline in Latin America and the cargo operator in the region. As of February 9, 2012, LAN and its affiliates provided domestic and international passenger services in Chile, Peru, Ecuador, Argentina and Colombia and cargo operations through the use of belly space on its passenger flights and cargo freighter aircraft through its cargo airlines in Chile, Brazil, Colombia and Mexico. LAN and its affiliates offered passenger flights to 15 destinations in Chile, 59 destinations in other South American countries, 15 destinations in other Latin American countries and the Caribbean, five destinations in the United States, two destinations in Europe and four destinations in the South Pacific and, through various codeshare agreements, service to 25 additional destinations in North America, 16 additional destinations in Europe, 27 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia, as of February 9, 2012. LAN and its affiliates provide cargo service to all of their passenger destinations and to 20 additional destinations served only by freighter aircraft. LAN also offers other services, such as ground handling, courier, logistics and maintenance. LAN and its affiliates operated a fleet, with 135 passenger aircraft and 14 cargo aircraft as of December 31, 2011. On February 15, 2011, Lan Pax Group S.A., subsidiary of Lan Airlines S.A. acquired 100% of Colombian society AEROASIS S.A.
LAN is primarily involved in the transportation of passengers and cargo. Its operations are carried out principally by Lan Airlines and also by a number of different subsidiaries. As of February 28, 2011, in the passenger business the Company operated through six main airlines: Lan Airlines, Transporte Aereo S.A. (which does business under the name Lan Express), Lan Peru S.A. (Lan Peru), Aerolane Lineas Aereas Nacionales del Ecuador S.A. (Lan Ecuador), Lan Argentina S.A. (Lan ! Argentina, previously Aero 2000 S.A.) and the Aerovias de Integracion Regional, Aires S.A. (Aires). As of February 28, 2011, the Company held a 99.9% interest in Lan Express through direct and indirect interests, a 70.0% interest in Lan Peru through direct and indirect interests, a 71.9% indirect interest in Lan Ecuador, a 99.0% indirect interest in Lan Argentina and a 94.99% indirect interest in Aires (a Colombian entity which was acquired on November 26, 2010). Its cargo operations are carried out by a number of companies, including Lan Airlines and Lan Cargo. As of February 28, 2011, the Company held a 69.2% interest in Aero Transportes Mas de Carga S.A. de C.V. (MasAir), through direct and indirect participations, a 73.3% interest in ABSA through direct and indirect participations, and a 90.0% interest in LANCO through direct and indirect participations. In the cargo business, the Company markets itself primarily under the Lan Cargo brand. In addition to its air transportation activities, the Company provides a series of ancillary services. It offers handling services, courier services and logistics, small package and express door-to-door services through Lan Airlines and various subsidiaries.
Passenger Operations
As of February 28, 2011, the Company operated passenger airlines in Chile, Peru, Ecuador, Argentina and Colombia. As of February 28, 2011, our passenger operations were performed through airlines in Chile, Peru, Ecuador, Argentina and Colombia where we operate both domestic and international services. As of February 28, 2011, the Company�� network consisted of 15 destinations in Chile, 14 destinations in Peru, four destinations in Ecuador, 14 destinations in Argentina, 24 destinations in Colombia, 14 destinations in other Latin American countries and the Caribbean, five destinations in the United States, one destination in Canada, three destinations in Europe and four destinations in the South Pacific. Within Latin America, it has routes to and from Argentina, B! olivia, B! razil, Chile, Colombia, Cuba, the Dominican Republic, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company also flies to a variety of international destinations outside Latin America, including Auckland, Fort Lauderdale, Frankfurt, Los Angeles, Madrid, Miami, Mount Pleasant (Falkland Islands), New York, Toronto, Papeete (Tahiti), Paris, San Francisco, and Sydney. In addition, as of February 28, 2011, through its various code-share agreements, the Company offered service to 25 additional destinations in North America, 16 additional destinations in Europe, 25 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia. As of February 28, 2011, the Company operated scheduled international services from Chile, Peru, Ecuador and Argentina through Lan Airlines; Lan Express in Chile; Lan Peru in Peru; Lan Ecuador in Ecuador; Lan Argentina in Argentina and Aires in Colombia. Its international network combines the Company�� Chilean, Peruvian, Ecuadorian, Argentinean and Colombian affiliates. It provides long-haul services out of its four main hubs in Santiago, Lima, Guayaquil and Buenos Aires. It also provides regional services from Chile, Peru, Ecuador and Argentina.
Cargo Operations
The Company�� cargo business operates on the same network used by the passenger airlines business, which is supplemented by freighter-only operations. The Company carries cargo for a variety of customers, including other international air carriers, freight-forwarding companies, export oriented companies and individual consumers. As of February 28, 2011, the Company operated a fleet of 140 aircraft, comprised of 126 passenger aircraft and 14 cargo aircraft.
The Company competes with UPS, FedEx, Centurion, Transportes Aereos Mercantiles Panamericanos S.A., Polar Air, Cargolux, Lufthansa Cargo, Martinair and Air France-KLM.
Advisors' Opinion:- [By Monica Gerson]
LATAM Airlines Group SA (NYSE: LFL) is expected to post its Q1 earnings at $0.20 per share on revenue of $3.42 billion.
Gladstone Investment (NASDAQ: GAIN) is projected to post its Q4 earnings at $0.17 per share on revenue of $8.90 million.
Best Airline Companies To Buy Right Now: WestJet Airlines Ltd (WJA)
WestJet Airlines Ltd. (WestJet) provides airline service and travel packages with scheduled service to more than 85 destinations in North America, Central America and the Caribbean, and has partnership agreements with over 30 airlines around the world. WestJet operates a fleet of more than 100 Boeing Next-Generation 737 and Bombardier Q400 NextGen aircraft. The Company�� subsidiaries include WestJet Investment Corp., WestJet Operations Corp., WestJet Vacations Inc. and WestJet Encore Ltd. Advisors' Opinion:- [By Eric Lam]
BlackBerry, the smartphone maker looking to sell itself, lost 3.6 percent to pace declines among technology stocks. WestJet (WJA) Airlines Ltd. dropped 2.5 percent as load factor slipped in September. Valeant Pharmaceuticals International Inc. rose 1.4 percent after receiving approvals for products in the U.S. and Canada. Agrium Inc. added 0.7 percent after naming a successor for its retiring chief executive officer.
- [By Gerrit De Vynck]
Closely held Porter unveiled plans in April to add as many as 30 CSeries jets in an order valued at as much as $2.1 billion from Montreal-based Bombardier to reach as far as Los Angeles and the Caribbean as it challenges the country�� two biggest carriers, Air Canada and WestJet Airlines Ltd. (WJA) The order, which would be Bombardier�� first for the aircraft with a Canadian carrier, is conditional on the runway extension and a removal of the jet ban.
Best Airline Companies To Buy Right Now: US Airways Group Inc (LCC)
US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries, US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of the Company�� airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. It has hubs in Charlotte, Philadelphia and Phoenix and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport (Washington National). During the year ended December 31, 2011, it offered scheduled passenger service on more than 3,100 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. It also has an East Coast route network, including the US Airways Shuttle service.
The Company had approximately 53 million passengers boarding its mainline flights in 2011. During 2011, the Company�� mainline operation provided scheduled service or seasonal service at 133 airports, while the US Airways Express network served 156 airports in the United States, Canada and Mexico, including 78 airports also served by its mainline operation. US Airways Express air carriers had approximately 28 million passengers boarding their planes in 2011. As of December 31, 2011, the Company operated 340 mainline jets and was supported by its regional airline subsidiaries and affiliates operating as US Airways Express under capacity purchase agreements, which operated 233 regional jets and 50 turboprops. The Company�� prorate carriers operated seven turboprops and seven regional jets at December 31, 2011.
In May 2011, US Airways Group and US Airways entered into an Amended and Restated Mutual Asset Purchase and Sale Agreement (the Mutual APA) with Delta Air Lines, Inc. (Delta). Pursuant to the Mutual APA, Delta agreed to acquire 132 slot pa! irs at LaGuardia from US Airways and US Airways agreed to acquire from Delta 42 slot pairs at Washington National and the rights to operate additional daily service to Sao Paulo, Brazil. On December 13, 2011, the transaction contemplated by the Mutual APA closed and ownership of the respective slots was transferred between the airlines. During 2011, the US Airways Express network served 156 airports in the continental United States, Canada and Mexico, including 78 airports also served by its mainline operation. During 2011, approximately 28 million passengers boarded US Airways Express air carriers��planes, approximately 44% of whom connected to or from its mainline flights.
The Company competes with Southwest, JetBlue, Allegiant, Frontier, Virgin America and Spirit.
Advisors' Opinion:- [By Tim Beyers]
After combining satisfaction scores tracked by the American Customer Satisfaction Index, or ACSI, with each carrier's year-to-date load factor, I think those flying Southwest Airlines (NYSE: LUV ) are most likely to get home without incident. US Airways (NYSE: LCC ) travelers might not be so lucky. Here's a closer look at the entire field.
- [By Johanna Bennett]
A federal judge cleared the way for AMR (AAMRQ) to exit bankruptcy, clearing the way for a merger between American Airlines (owned by AMR) and U.S. Airways Group (LCC). AMR and U.S. Airlines�rose 2.7% and 0.6%�respectively.
- [By Jon C. Ogg]
The pending merger of AMR Corp. (OTC: AAMRQ) and US Airways Group, Inc. (NYSE: LCC) has gone from being blocked to now looking far more likely now that the companies have offered up concessions. This is going to give the entire airline sector some serious pricing power and the power to jam customers into planes like sardines if they want, plus the right to bilk endlessly with fees for everything. Unfortunately, all of the good news may be priced into the airline stocks at this time.
- [By Ben Levisohn]
Earlier, the Justice Department said it would sue AMR Corp. (AAMRQ) and U.S. Airways (LCC) to block their merger, citing competitive concerns. AMR has dropped 48% to $2.99 on the news, while U.S. Airways has fallen 10% to $13.38.
Best Airline Companies To Buy Right Now: China Eastern Airlines Corp Ltd (CEA)
China Eastern Airlines Corporation Limited (China Eastern), incorporated on April 14, 1985, is an air carriers operating in the People�� Republic of China. As of December 31, 2010, the Company served a route network that covers 182 domestic and foreign cities in 30 countries. It operates from Shanghai�� Hongqiao International Airport and Pudong International Airport. During the year ended December 31, 2010, its flights accounted for 52.2% and 37.9% of all the flight traffic at Hongqiao International Airport and Pudong International Airport, respectively. During 2010, it accounted for approximately 31.1% of the total passenger traffic volume and 19% of the total freight volume on routes to and from Shanghai. As of December 31, 2010, it had a fleet of 355 aircraft, including 337 passenger jets each with a seating capacity of over 100 seats and 18 freighters.
Passenger Operations
During 2010, the Company operated approximately 9,600 scheduled flights per week, excluding charter flights, serving a route network that covers 182 domestic and foreign cities in 30 countries. During 2010, its domestic routes generated approximately 71.5% of its passenger revenues. Its heavily traveled domestic routes link Shanghai to the commercial and business centers of the People�� Republic of China, such as Beijing, Guangzhou and Shenzhen. During 2010, it also operated approximately 361 flights per week to and from Hong Kong, originating from Shanghai and 16 major cities in eastern, northern and western the People�� Republic of China. During 2010, it operated approximately 103 flights per week between mainland China and Taiwan. During 2010, its regional routes accounted for approximately 5.4% of its passenger revenues. During 2010, it operated approximately 1,079 international flights per week, serving 60 cities in 29 countries, linking Shanghai to cities in Asian and Southeast Asian countries, such as Japan, Korea, India, Singapore, Thailand and Bangladesh and locations in Europe, the Un! ited States and Australia.
During 2010, the Company re-started its Shanghai to London and Shanghai to Moscow routes. During 2010, revenues derived from its operations on international routes accounted for approximately 23.2% of its passenger revenues. During 2010, revenues derived from its operations to and from Japan accounted for approximately 7.7% of its passenger revenues and approximately 33.4% of its international passenger revenues. Its international and regional flights and a portion of its domestic flights either originate or terminate in Shanghai, the central hub of its route network. Its operations in Shanghai are conducted at Hongqiao International Airport and Pudong International Airport. On March 16, 2010, it moved its operations at Hongqiao International Airport to the terminal two of Hongqiao International Airport. It operates its flights through three hubs located in eastern, northwestern and southwestern China, namely Shanghai, Xi��n and Kunming, respectively.
Cargo and Mail Operations
The Company�� cargo and mail business utilizes the same route network used by its passenger airline business. It carries cargo and mail on its freight aircraft, as well as in available cargo space on its passenger aircraft. Its cargo and mail routes are international routes. As of December 31, 2010, it had seven MD-11F, four B777F and two B757-200F freight aircraft under operating leases for cargo and mail operations. It also has three Airbus A300-600R aircraft, as well as two Boeing 747-400ER freighters for its cargo operations.
The Company competes with Air China Limited, China Southern Airlines Company Limited, Hong Kong Dragon Airlines Limited, Cathay Pacific Airways, Thai Airways International, Singapore Airlines, Delta Air Lines, United Airlines, American Airlines, Air Canada, Delta, Alitalia, Air France-KLM Group, Asiana Airlines, Korean Air, Virgin Atlantic Airways, British Airways, Lufthansa German Airlines, Aeroflot and Qantas Airways.
Advisors' Opinion:- [By Belinda Cao]
The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P�� valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.
Best Airline Companies To Buy Right Now: Deutsche Lufthansa AG (LHA)
Deutsche Lufthansa AG is a Germany-based aviation company with global operations and a total of more than 400 subsidiaries and associated companies. The Company is engaged in passenger transport, airfreight and airline services. The Lufthansa Group operates in five major business segments: scheduled passenger air traffic (Passenger Airline Group) consists of Deutsche Lufthansa AG, Lufthansa CityLine GmbH, Swiss International Air Lines AG, Austrian Airlines AG, Air Dolomiti S.p.A., Eurowings Luftverkehrs AG and Germanwings GmbH; scheduled airfreight services (Logistics) consists of the Lufthansa Cargo group; maintenance, repair and overhaul (MRO) consists of the Lufthansa Technik group; information technology (IT Services) consists of the Lufthansa Systems group, and catering (Catering) consists of the LSG Lufthansa Sky Chefs group. On April 20, 2012, the Company announced the divestiture of British Midland Ltd. (bmi) to International Consolidated Airlines Group SA. Advisors' Opinion:- [By Jonathan Morgan]
German stocks were little changed, as declines in utilities and banks offset gains in Deutsche Lufthansa AG (LHA) and Deutsche Boerse AG.
RWE AG (RWE), Germany�� second-largest utility, slipped 2.4 percent after RBC Capital Markets cut its recommendation on the stock. Lufthansa followed its European peers higher, recovering some of its Aug. 2 selloff. Xing AG (O1BC), the business social network, jumped the most since October as Deutsche Bank AG (DBK) upgraded its rating on the shares.
- [By Tom Stoukas]
Deutsche Lufthansa AG (LHA) and Allianz SE (ALV) led airlines and insurers lower, retreating at least 1.5 percent. Bayerische Motoren Werke AG (BMW) slid 1.6 percent. Deutsche Bank AG (DBK) rose after JPMorgan Chase & Co. boosted its recommendation on the shares. Gildemeister AG (GIL) added 3.4 percent after Deutsche Bank upgraded the maker of cutting tools.
Best Airline Companies To Buy Right Now: Gol Linhas Aereas Inteligentes SA (GOL)
Gol Linhas Aereas Inteligentes S.A. (GoL) is a low-cost, low-fare airline in the world providing service on routes connecting all of Brazil�� cities and from Brazil to cities in South America and select touristic destinations in the Caribbean. As of March 31, 2010, GoL offered approximately 800 daily flights per day to 61 destinations connecting cities in Brazil, as well as destinations in Argentina, Bolivia, Curacao, Aruba, Chile, Colombia, Paraguay, Uruguay and Venezuela. GoL is a holding company, which owns directly or indirectly shares of five subsidiaries: VRG Linhas Aereas S.A. (VRG) and four offshore finance subsidiaries, Gol Finance Cayman and GAC Inc., which owns Sky Finance and Sky Finance II. VRG is the Company�� operating subsidiary, under which it conducts its business. Gol Finance, GAC Inc., Sky Finance and Sky Finance II are off-shore companies established for the purpose of facilitating cross-border general and aircraft financing transactions.
GoL�� passenger transportation services include ticketless travel; online sales, check-in, seat assignment and flight change and cancellation services; online flight status service; Web-enabled cell phone ticket sales and check-in; self check-in at kiosks at designated airports; designated female lavatories; friendly and efficient in-flight service; modern aircraft interiors; quick turnaround times at airport gates; free or discounted shuttle services between airports and drop-off zones on certain routes; buy on board services on certain flights; mobile check-in and boarding pass (100% paperless boarding), and iPhone application for check-in, electronic boarding pass and Smiles account management. On December 31, 2009, the Company had an operational fleet of 108 operational aircraft and a total fleet of 127. As of March 31, 2010, one of its Boeing 767 aircrafts was subleased to a charter company in the United States, one is under final formalization process for a wet lease to a Brazilian company for flights connecting Brazil to! Angola and three are under final stages of negotiation to be chartered to operate intercontinental flights. At December 31, 2009, GoL had a total of 127 aircraft, 94 of which were under operating leases and 33 were under finance leases.
The Company competes with TAM Linhas Aereas S.A.
Advisors' Opinion:- [By Jake L'Ecuyer]
Gol Linhas Aereas Inteligentes (NYSE: GOL) was down, falling 6.31 percent to $4.0850 after the company posted a loss in the third quarter.
Commodities
In commodity news, oil traded up 1.33 percent to $94.28, while gold traded up 0.28 percent to $1,274.70. - [By Jim Jubak]
One place to look for it this week has been in the ADRs, the New York traded ADRs, American Depository Receipts of GOL. One of the two big Brazilian airlines is the only one that is not owned by somebody else. The symbol is (GOL). It went up like 9.5% on October 21; it went up about 4.5% on October 22, pulled back a tiny little bit on October 23, but still a major, major move. This is basically on the effect of a weaker dollar versus the Brazilian real, since GOL is basically a domestic airline and almost all their revenue is denominated in real, which means that when the real gets cheap against the dollar, it hurts their revenue, especially because most of their costs, a lot of their costs, probably about 80% of their costs are denominated in dollars. A strong dollar means what they pay for oil, kerosene, jet fuel, what they pay for debt service, what they pay on airplane leases, all denominated in dollars, goes up, so GOL has been getting hammered on this. The reversal of this is a big deal for the stock.
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