Gulfstream Reports Results of Restructuring
Gulfstream International Group, Inc. (GIA) reported net income of $2.3 million or $0.63 per diluted share, representing a more than $5 million swing from the loss experienced in the year-ago period when it reported a net loss of $3.5 million or $1.20 per share. However, the company said that net income included a $2 million favorable non-cash tax benefit on a lower valuation allowance for deferred tax assets.

For the first half of the year, GIA earned $2.9 million or $0.82 per diluted share compared to a net loss of $4.8 milion in the year-ago period.
Operating income was $984,000 for the June 2009 quarter, compared to an operating loss of $5,508,000 for the comparable quarter of 2008. Operating income was $2,804,000 for the first half of 2009, compared to an operating loss of $7,440,000 for the first half of 2008. The operating loss for the second quarter of 2008 and first half of 2008 included a $4.5 million loss on aircraft sales.

Total revenue declined 23.7% to $23.7 million for the June 2009 quarter. Airline passenger revenue declined 41.2% to $16.2 million for the June 2009 quarter due primarily to capacity reductions implemented as part of our business restructuring in October 2008. Available seat miles (ASM) declined 42.2% for the June 2009 quarter compared to last year, and revenue passenger miles (RPM) declined 38.7%. The resulting load factor increased 3.3 points to 58.1% this quarter from 54.8% for the June 2008 quarter.

The average passenger fare for the June 2009 quarter was $144.46, or 3.7% higher than for the second quarter of 2008. The decline in scheduled passenger revenue was partially offset by $2.1 million of Essential Air Service revenue associated with five new routes initiated from the five Cleveland routes. The company also benefited from the relaxation of travel restrictions to Cuba having created a charter service which increased charter revenue 7% to $3.3 million during the June quarter.

Total operating expenses declined 37.9% to $22.7 million for the June 2009 quarter. Aircraft fuel expense declined 67.7% to $3.3 million for the June 2009 quarter due to a combination of capacity reductions and lower fuel prices. The average price per gallon for jet fuel was $1.83 for the June 2009 quarter, compared to $3.70 for the second quarter of 2008. Average fuel cost dropped from $3.70 per gallon in the year-ago quarter to $1.83 in 2Q09.

"We are very pleased with the continued year-over-year improvement in our operating results, particularly considering the impact of the difficult economic environment,” said President and Chief Executive Officer David F. Hackett. “The revenue initiatives, dramatic capacity adjustments and structural and capacity-related cost reductions that comprised the aggressive business plan implemented in 2008 continued to drive the significant profit improvements reported for the second quarter and first half of 2009."

New Investment Relations Group
Gulfstream has hired Strategic Growth International for investor relations function and to increase visibility of the airline in the investment community. Founded in 1989, SGI is headed by Stanley Altschuler and Richard Cooper, two long-time and highly respected Wall Street veterans, who have assembled an experienced team of investment/financial professionals to serve their clients. Since its inception in 1989, Strategic Growth has achieved an unparalleled success for over a hundred clients.
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Irkut Wins Contract for Russian MC-21 Commercial Aircraft
Hamilton Sundstrand will supply multiple systems for the MC-21 commercial aircraft family being produced by Irkut Corp in an award valued at $2.3 billion over the life of the program. The United Technologies subsidiary will develop the advanced Electric Power Generating System, secondary electrical power distribution, Auxiliary Power Unit, wing anti-ice and bleed air conditioning for the Nitrogen Generation System. In addition, Hamilton Sundstrand will jointly develop the integrated Air Management System together with its partner NPO Nauka, while Kidde Aerospace & Defense, a Hamilton Sundstrand subsidiary, has been selected to supply the fire detection and suppression system.

Slated to enter service in 2016, the MC-21 is Irkut Corp.'s newest aircraft model, accommodating between 150 and 230 passengers in three basic versions.

The joint venture – NPO Hamilton Standard – with OAO NPO Nauka was established in 1994 in Moscow and specializes in development and production of heat exchangers for commercial aircraft air-conditioning systems. The heat exchangers manufactured by the company are also used by Boeing, Airbus, Embraer, Bombardier and Tupolev.
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ANA Starts Helicopter Transfer Service
ANA’s first class passengers will be able to take advantage of the airlines about-to-be launched helicopter service for those anxious to get to downtown Tokyo. Aimed at first class passengers, the luxury helicopter ride takes 30 minutes, according to the agreement between the airline and Mori Building City Air Services (MCAS). The new service is being launched on September 16.

ANA is taking a tip from U.S. carriers such as Delta and Continental which offer helicopter service between Manhattan and New York’s JFK International Airport.

Passengers will be whisked by car from Narita Airport on a 15 minute drive to nearby Narita (Sakura) Heliport, from where it is a mere 15 minutes’ flight to Ark Hills Heliport in centrally located Akasaka, the heart of the business district which includes multinational companies, embassies, major hotels and retail centers.

“When MCAS set up business in January this year, we saw the perfect opportunity to give our First Class passengers more value, convenience and amenity when returning to Japan,” said Shinya Katanozaka, executive vice president for marketing & sales, and products & services strategy at ANA. “Most of our intercontinental flights arrive mid afternoon in Narita, and many busy executives need to get back into central Tokyo within their working day. This is hopefully a choice that can enhance their lifestyles, not to mention the thrill of flying so closely over one of the world’s most exciting and vibrant metropolises.”

The service will operate using a Eurocopter EC135 – with an interior designed by Maison Hermes of France – which seats four to five passengers. It will be available until March 31, 2010 and is offered to First Class round-trip passengers returning to Narita on ANA operated flights from New York, Chicago, San Francisco, Los Angeles, London, Paris and Frankfurt. Passengers travelling on code-share flights, reward tickets or using certain fare categories are not eligible for this service.
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AAAE Schedules Webinar to Cope with New Deicing Rule
On the heels of a new deicing rule issued this week by the Environmental Protection Agency, the American Association of Airport Executives has scheduled a webinar to explain how it will impact operations. AAAE Aircraft and Airfield Deicing and Stormwater Issues Webinar is scheduled for 2:00 to 4:00 PM on both September 1st and September 2nd.

The proposed rule, issued Wednesday, would improves the environmental impact of deicing operations, according to EPA which is proposing requirements for control of the wastewater associated with the deicing of aircraft and pavement at more than 200 commercial airports nationwide. The proposed rule is open for public comment for 120 days following publication in the Federal Register.

EPA estimates that six major airports, which are among the largest users of aircraft deicing fluid, would likely install centralized deicing pads to comply with the proposed requirements. Airports using lesser amounts of deicing fluid would collect 20 percent of the spent fluid with technologies such as glycol recovery vehicles. The estimated 50 airports that currently use urea to deice runways would use more environmentally friendly deicers, or reduce the discharges of ammonia from continued use of urea. A number of airports in the country already comply with the proposed requirements.

EPA and states would incorporate the proposed requirements into storm water permits. The EPA has worked closely with the Federal Aviation Administration which has determined that, if implemented, this regulation would have no impact on the safe operation of airplanes or runways that are treated for snow and/or icing conditions.

The Effluent Limitation Guidelines (ELG) panel will include:
• Eric Strassler, Project Manager for Deicing Effluent Guidelines, Environmental Protection Agency
• Ed Melisky, Environmental Specialist, Airports Planning & Environmental Division, Federal Administration
• Dr. Dean Mericas, Principal, Aviation Environmental Specialist, CH2M Hill
• Jeff Longsworth, Attorney, Barnes & Thornburg LLP
• John Lengel, P.E, Principal, Gresham, Smith & Partners
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Icelandair Relocates U.S. HQ
Icelandair is relocating its North American headquarters from Columbia, MD to Quincy, MA as part of an effort “to embrace new opportunities for the airline in Boston.” The company noted that while other carriers are cutting back, it is expanding with a new team. Its expansion has included a new gateway at Seattle and several new destinations in Europe – Stavanger, Dusseldorf, Brussels, Glasgow and Manchester.

"Icelandair is pleased to be moving closer to Icelandair's gateway in Boston. Our presence here will allow us to be more active in the community as well as being involved with local events and initiatives," enthused Thorsteinn Egilsson, General Manager - The Americas.

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