United Continental (NYSE: UAL ) has a new program of all-you-can-eat fringe benefits for its customers.
The parent company of United Airlines announced Monday that it is now offering flyers the option of "subscribing" for benefits formerly ordered a la carte. For example:
For $499 per year, flyers can join the "Economy Plus" program offering "additional legroom to stretch out and relax" on "most" of the airline's nearly own aircraft, and also on nearly 180 United Express aircraft. For $349 per year (and up), flyers can subscribe for free checked baggage on their flights. Multiple conditions apply -- in particular, subscriptions cost more when bought for use in regions broader than just the continental United States and can range up to $799. Also, checking more than one bag costs $50 more, and the company may charge an "initiation fee" at some point in the future. United is permitting customers to buy yearlong memberships in United Club for $500 (and up).United says that as of today, it is "the only U.S. carrier to offer an annual subscription for its extra-legroom economy seating and checked baggage service charges."
Hot Heal Care Stocks To Invest In Right Now: Gogo Inc (GOGO)
Gogo Inc incorporated on December 14, 2009, is a holding company. The Company operates through its two operating subsidiaries, Gogo LLC and Aircell Business Aviation Services LLC. The Company provides in-flight connectivity and wireless in-cabin digital entertainment solutions. It provide turnkey solutions for passengers to extend their connected lifestyles to the aircraft cabin. It operates in two segments: commercial aviation (CA) and business aviation (BA). Its CA business provides in-flight connectivity and digital entertainment solutions to commercial airline passengers through their personal Wi-Fi enabled devices.
The Company provides Gogo Connectivity to passengers to nine North American airlines that provide Internet connectivity to their passengers. It provide Gogo Connectivity to passengers on Delta Air Lines, American Airlines, Virgin America, Alaska Airlines, US Airways, Frontier Airlines and Air Tran Airways. It also provide Gogo Connectivity to passengers on a small number of aircraft operated by United Airlines and Air Canada. As of September 30, 2011, the Company had equipped 1,177 commercial aircraft, representing approximately 85% of Internet-enabled North American commercial aircraft, which were operated on more than 4,200 daily flights.
The Company�� BA segment sells equipment and provides services for in-flight Internet connectivity and other voice and data communications under its Gogo Biz and Aircell branded products and services. BA�� customers include original equipment manufacturers of private jet aircraft such as Gulfstream, Cessna, Hawker Beechcraft, Bombardier, Dassault, Embraer, NetJets, Flexjets, Flight Options and CitationAir. It sells equipment for three of the primary connectivity network options in the business aviation market: Gogo Biz, through which it delivers broadband Internet connectivity over its (air-to-ground )ATG network, and the Iridium and Inmarsat SwiftBroadband satellite networks. As of September 30, 2011, the Company had m! ore than 700 Gogo Biz systems in operation and more than 4,600 aircraft with Iridium satellite communications systems in operation, and it has sold more than 100 Inmarsat SwiftBroadband systems. It provides in-flight broadband connectivity across the contiguous United States and portions of Alaska through 3 MHz of FCC-licensed ATG spectrum and its network of cell sites.
Through its Gogo platform, the Company provides passengers with a convenient and easy way to access the Internet, view video content, send and receive email and instant messages, and access corporate VPNs on Gogo-equipped commercial aircraft. It provides Internet access through Gogo Connectivity, on-demand streaming video offerings through Gogo Vision and access to a variety of free entertainment and service offerings, customized for each airline, through Gogo Signature Services.
The Company competes with Panasonic Avionics, Row 44, OnAir, LiveTV and Thales.
Advisors' Opinion:- [By Jake L'Ecuyer]
Gogo (NASDAQ: GOGO) shares were also up, gaining 8.89 percent to $12.99 after the company reported upbeat Q1 results. Gogo posted a quarterly loss of $16.9 million, or $0.20 per share, versus a year-ago loss of $32.5 million, or $4.77 per share.
- [By Paul Ausick]
Big Earnings Movers: Gogo Inc. (NASDAQ: GOGO) is up 28.3% at $24.05. Gulf Resources Inc. (NASDAQ: GURE) is up 15.8% at $2.46.
Stocks on the Move: ViroPharma Inc. (NASDAQ: VPHM) is up 25.4% at $49.38 on a $4.2 billion buyout offer from London-listed Shire. Zalicus Inc. (NASDAQ: ZLCS) is down 72.3% at $1.30 on a failed drug trial.
- [By Whitney Kisling]
After his holdings of Yelp Inc. and Pandora (P) Media Inc. doubled earlier this year, the 50-year-old manager is adding a new stock: Gogo Inc. (GOGO), an unprofitable provider of in-flight Wi-Fi that�� up 63 percent since its June public offering.
- [By Jake L'Ecuyer]
Gogo (NASDAQ: GOGO) shares were also up, gaining 9.06 percent to $14.92. UBS upgraded Gogo from Neutral to Buy.
Equities Trading DOWN
Shares of AstraZeneca PLC (NYSE: AZN) were 10.50 percent to $71.85 after the company's board rejected the new $119 billion takeover offer from Pfizer (NYSE: PFE).
Top Airline Stocks To Watch Right Now: Global Eagle Entertainment Inc (ENT)
Global Eagle Entertainment Inc., formerly Global Eagle Acquisition Corp., incorporated on February 2, 2011, is the full service platform offering both content and connectivity for the worldwide airline industry. Through its combined content, distribution and technology platforms, the Company provides airlines and the millions of travelers they serve with the offering of in-flight video content, e-commerce and information services. Through its Row 44 subsidiary, the Company utilizes Ku-band satellite technology to provide airline passengers with Internet access, live television, shopping and travel-related information. As of February 1, 2013, the Company installed on more than 450 aircraft, Row 44 has the fleet of connected entertainment platforms operating over land and sea globally. In addition, through its AIA division, the Company provides film and television content, games and applications to more than 130 airlines worldwide. In July 2013, the Company announced the acquisition of Post Modern Group, LLC. In October 2013, Global Eagle Entertainment Inc announced that it has acquired Travel Entertainment Group Equity Limited, the United Kingdom-based parent company of IFE Services Limited (IFE Services) from GCP Capital Partners LLP.
The Company�� Row 44 subsidiary provides satellite-based broadband service to the global airline industry. The Company�� Advanced Inflight Alliance (AIA) business is the provider of content services, products and solutions for the global inflight entertainment market. AIA also serves as the exclusive representative in sourcing Hollywood content for 60 airline customers and is the exclusive distributor of content from select Hollywood studios and independent producers to the airline market. In addition, AIA is the airline distributor of Asian, Bollywood, European, Latin American and Middle Eastern content.
Advisors' Opinion:- [By Garrett Cook]
Shares of Global Eagle Entertainment (NASDAQ: ENT) got a boost, shooting up 10.38 percent to $12.12 after the company and Boeing (NYSE: BA) announced a satellite connectivity partnership.
- [By Steve Symington]
What:�Shares of Global Eagle Entertainment� (NASDAQ: ENT ) �rose 12% early Friday, then settled close up around 7% after the in-flight content and connectivity specialist released solid first-quarter results.
Top Airline Stocks To Watch Right Now: Southwest Airlines Co (LUV)
Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).
AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.
As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.
Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.
Advisors' Opinion:- [By Rick Munarriz]
Southwest (NYSE: LUV ) is announcing this morning that it's teaming up with DISH Network (NASDAQ: DISH ) to offer complimentary access to 14 live TV channels as well as 75 on-demand shows through the airline's more than 400 Wi-Fi-enabled planes.
- [By Alexander MacLennan]
If American Airlines Group does decide to pay a dividend, expect it to be a small one -- possibly a yield less than 1% as seen at Alaska Air Group and longtime dividend-paying Southwest Airlines (NYSE: LUV ) . In the highly capital-intensive airline industry, large dividends are not something carriers like to commit to, especially considering the volatile nature of airline profits.
- [By WALLSTCHEATSHEET]
Southwest Airlines provides air travel services to consumers and companies across the nation. The company is expanding beyond the continental United States with flights to the Caribbean beginning July 1. The stock has been moving higher in recent years and is now trading near highs. Over the last four quarters, earnings have been mixed while revenues have been increasing, which has left investors pleased with recent earnings announcements. Relative to its peers and sector, Southwest Airlines has been an average year-to-date performer. Look for Southwest Airlines to continue to OUTPERFORM.
Top Airline Stocks To Watch Right Now: Grupo Aeromexico SAB de CV (AEROMEX*)
Grupo Aeromexico SAB de CV is a Mexican holding company primarily engaged in the provision of passenger and cargo air transport services. It offers destinations in Mexico, the United States, Europe, Central and South America, Asia and Canada. It operates a fleet of over 110 aircrafts. The Company is primarily engaged in the passenger transportation segment, comprising regional, domestic and international routes, and package holidays; as well as in cargo transportation segment, handled mainly by its subsidiary Aeromexico Cargo. By its subsidiaries the Company is also engaged in real estate sector and in providing services to the aviation companies, including personnel training, management, and aircraft maintenance and modification. Its subsidiaries include Aerovias de Mexico SA de CV, Premier Loyalty & Marketing SAPI de CV, and Inmobiliaria Avenida Fuerza Aerea Mexicana 416 SA de CV, among others. In addition, it is a member of the SkyTeam airline alliance. Advisors' Opinion:- [By Jonathan Levin]
Volaris became Mexico�� second publicly traded carrier, after larger competitor Grupo Aeromexico SAB (AEROMEX*) sold stock in 2011. Airlines in Mexico have expanded into a void left when Cia. Mexicana de Aviacion, then largest based on passenger traffic, sought protection from creditors and ceased operations in 2010.
Top Airline Stocks To Watch Right Now: United Continental Holdings Inc.(UAL)
United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. As of February 24, 2011, it operated a total of approximately 5,675 flights a day to 372 airports on 6 continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Tokyo, as well as in Washington, D.C. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. on October 1, 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.
Advisors' Opinion:- [By Jonathan Yates]
At present, the biggest customer for the 787 is United Continental (NYSE: UAL). Demand for the 787 is particularly strong from Asia, with an eight-year backlog.
- [By WWW.DAILYFINANCE.COM]
Getty ImagesAruba is one of Southwest's new destinations. At the beginning of July, Southwest Airlines (LUV) did something it hadn't previously done in its 43 years of existence: It landed a Southwest-branded commercial flight in a foreign country. Its move abroad is a departure for the carrier, which over the decades built a reputation as a charmingly low-frills airline flying only domestic routes. In a tough industry, it's done well with this business profile, so why is it starting to go overseas now? International Income Domestic air travel is growing relatively slowly. In 2013, total passenger numbers for intra-U.S. voyages rose by less than 1 percent on a year-over-year basis, and just over 4 percent from 2009 to 2013. Those growth numbers for international travel, meanwhile, were 3 percent and 17 percent, respectively. American Airlines Group (AAL) brought in around 40 percent of its total $23 billion or so in passenger revenues from international flights in fiscal 2013. United Continental (UAL) doesn't break down its take by domestic versus international hauling. It does, however, admit that for June its revenue passenger miles (a key figure of total paying customer volume) for domestic flights totaled 8.36 billion, while that for international came in at 8.40 billion -- an almost exact 50/50 split. Cheaper Caribbean Southwest plans to use its famous discounts to win business for its new routes -- the nearby vacation destinations of Jamaica, the Bahamas and Aruba. For example, booking one of Southwest's round-trip, nonstop flights from Atlanta to Montego Bay, Jamaica, for midweek departure and return in September at the lowest available fare recently brought up a ticket for just under $300. The cheapest option for a nonstop round trip for the same dates on Priceline Group's (PCLN) Kayak booking engine was a bit over $400 from Delta (DAL). That was similar to the price returned from a search on the airline's own site. Meanwhile, Priceline's propr
Top Airline Stocks To Watch Right Now: AMR Corp (AAMRQ)
AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.
American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.
To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, British Airways, Cape Air, Cathay Pacific, China Eastern Airl! ines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.
American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.
The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.
Advisors' Opinion:- [By Ben Levisohn]
What a wild ride it’s been for AMR Corp. (AAMRQ) shareholders. The parent of American Airlines lost 45% on the day when the DoJ said it would try to block its merger with US Airways (LCC). Then it started rising as support for the deal grew and analysts predicted as much as a 75% chance that the AMR Corp. and US Airways merger would go through.
Associated PressCall it 99%. Today the DoJ announced that it would approve the merger, although the combined airline would have to give up some gates at certain airports to promote competition.
Cowen’s Helane Becker and Conor Cunningham call it “the merger than never should been blocked.” They write:
Despite the divestitures, the companies maintained their synergy target of $1 Bn annually by 2015. We believe the company will achieve 25% to 35% of their target in 2014. We have always been skeptical of airline synergy targets but believe the company has significant earnings potential when a single operating certificate is achieved…
We view the settlement as positive for both the group and more importantly US Airways. The $1.0 billion synergy target is unchanged from prior guidance, despite slot divestitures at Washington National Airport and New York LaGuardia Airport, as well as gates at Boston Logan, Chicago O’Hare, Dallas Love Field, Los Angeles International and Miami
International. We would be a buyer of US Airways on any weakness as momentum traders will probably look to sell despite having a positive outlook on profitability going forward.S&P Capital IQ’s Jim Corridore reiterated his Strong Buy on US Airways:
The Department of Justice has issued a press release outlining terms of an agreed upon settlement that will allow the merger to go through. LCC will give up 104 slots at Reagan not reserved for smaller planes, 34 slots at LaGuardia, and gates and facilities at various other airports throughout the U.S. We think the
- [By Ben Levisohn]
It’s been a bumpy few weeks for airline stocks after the Department of Justice challenged AMR Corp.’s�(AAMRQ) merger with U.S. Airways (LCC), calling into question not just the consolidation thesis that had boosted airlines recently but also AMR’s future.
- [By Adam Levine-Weinberg]
The Frontier sale has been delayed several times, although management has suggested that it may be resolved within a few weeks. The contest for new fixed-fee contracts has been a mixed bag: without signed labor agreements, Republic has trouble making competitive bids. Republic did win a big contract from AMR (NASDAQOTH: AAMRQ ) recently, but other major contracts have gone to top competitor SkyWest (NASDAQ: SKYW ) .
- [By Rick Aristotle Munarriz]
Alamy Sometime, companies can make brilliant moves; other times, things don't work out quite as planned. From an airline overpaying its departing CEO to a new way to eat a waffle in the morning, here's a rundown of this week's best and worst results from the business world. Cedar Fair (FUN) -- Winner There were plenty of reasons to expect amusement park operator Cedar Fair to post lower revenue than it did a year earlier. The crowd-drawing Easter holiday slipped into the first quarter this year. Cedar Fair sold ones of its parks. There was one week less in the second quarter than during last year's period. More importantly, rival Six Flags (SIX) posted a 3 percent decline in revenue during the same period a few days ago. However, the parent company of Cedar Point and Knott's Berry Farm came through with a 1 percent uptick in revenue as guest spending was more than enough to offset the slowing turnstile clicks. This may be a small step, but it's welcome at a time when it faced the same fierce headwinds that many of its coaster rides do. J.C. Penney (JCP) -- Loser Activist investor Bill Ackman is raising a stink at J.C. Penney. Has he forgotten what happened the last time? Ackman is frustrated that the chain has stuck to former CEO Mike Ullman as its interim helmsman for too long. He wants the stumbling retailer to rush the process and bring another former J.C. Penney CEO to step in as chairman of the board. The problem here is that it was Ackman that pushed for J.C. Penney to bring on Apple Store mastermind Ron Johnson to rescue the chain two years ago. The makeover went terribly, and sales fell sharply as Johnson's moves alienated loyal shoppers without wooing new customers. Ackman is an accomplished investor, but it's hard to take him seriously here. Yum! Brands (YUM) -- Winner The parent company behind Taco Bell, KFC, and Pizza Hut made the cut in this weekly column last week after introducing a fast casual concept called KFC eleven that upgrades the me
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