Sunday, September 21, 2014

Top Airline Stocks To Own For 2014

Beware: I suspect this article will please precisely no one. Consider yourself forewarned.

After two weeks that have seen two Boeing (NYSE: BA  ) planes left burning on the tarmac, I've been asked to remind investors of the bigger picture at Boeing -- to pen a piece on the seven planes that made Boeing great.

Of course, boiling down the history of a century-old plane builder to just seven important models must be an exercise in triage. Do we limit our choices to Boeing qua Boeing, or do McDonnell-Douglas (or even just Douglas) birds deserve to roost among these rankings? (Sure. Why not?) Do we count military warplanes, in addition to civilian airliners? (No. At least not in today's column.) And how far back in time shall we search for the roots of Boeing's greatness, and how far into the future dare we guess its success may reach?

The only certainty is this: Anyone who knows Boeing at all is going to disagree with at least some of these choices. So be it. Without further ado, here are my nominations for the seven planes that made Boeing a great company -- and that give us some assurance this company has the staying power to remain great despite its recent setbacks.

10 Best Wireless Telecom Stocks To Own For 2015: 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.

Top Airline Stocks To Own For 2014: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

Advisors' Opinion:
  • [By Dimitra DeFotis]

    Delta Air Lines (DAL) is leading the pack after reporting traffic figures for the past month; its shares are down 5.5%.�American Airlines�(AAL) also is off 5%, and United Continental Holdings (UAL) is off 6.4%. Domestically-oriented airlines fared better, but shares also are in the red:�JetBlue Airways (JBLU) �and Alaska Holdings (ALK) are each down roughly 2%, while Southwest Airlines (LUV) is down nearly 1%.

  • [By Adam Levine-Weinberg]

    Unintended consequences?
    As I detailed last month, virtually every major U.S. airline is participating in the upgauging trend. Some, like JetBlue Airways (NASDAQ: JBLU  ) , are expanding their fleets with larger aircraft than they have previously flown. Others, including Alaska Air (NYSE: ALK  ) , are retrofitting existing planes to fit more seats onboard. Southwest Airlines (NYSE: LUV  ) is doing both of these things! Others, like Delta Air Lines (NYSE: DAL  ) , are buying larger planes to replace smaller ones that are being removed from service.

  • [By Johanna Bennett]

    The price drop help bolster some airline stocks Delta Air Lines (DAL) climbed, touching an all-time high early in the session, before closing at $29.17, a 2% gain over Friday.

  • [By Kyle Woodley]

    Namely, GoGo is contracted out with several airlines — including Delta Air Lines (DAL) and American Airlines (AAL) — through 2020. Even William Blair senior analyst James Breen said of the new competition, “I don’t think it has an impact on Gogo’s results over the next 6 to 7 quarters.”

Top Airline Stocks To Own For 2014: 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 Press

    Call 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

Top Airline Stocks To Own For 2014: Ryanair Holdings PLC (RYA)

Ryanair Holdings plc (Ryanair Holdings), is a holding company for Ryanair Limited (Ryanair). Ryanair operates a low-cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, and Morocco. As of June 30, 2012, the Company offered approximately over 1,500 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe with an operating fleet of 294 aircraft flying approximately 1,500 routes. Ryanair sells seats on a one-way basis. The Company also holds a 29.8% interest in Aer Lingus Group plc. As of June 30, 2012, Ryanair�� operating fleet was composed of 294 Boeing 737-800 aircraft, each having 189 seats. Ryanair�� fleet totaled 294 Boeing 737-800s at March 31, 2012. As of June 30, 2012, Ryanair owned and operated four Boeing 737-800 full flight simulators for pilot training. Advisors' Opinion:
  • [By Inyoung Hwang]

    Ryanair Holdings Plc (RYA), the discount airline operator that�� the second-biggest stock in Ireland�� ISEQ index, declined 1.7 percent to 7.23 euros in Dublin. Kerry Group, a supplier of food ingredients, sank 1.4 percent to 45.24 euros.

Top Airline Stocks To Own For 2014: 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 Jack Kramer and Nick Martell] Wall Street's busy buying up super high tickets to the NHL Stanley Cup Final games, while Brooklyn hipsters are flocking to random bars to watch the World Cup -- the two big events must partially be behind the market's recent tumble. Fresh after Wednesday's triple-digit loss, the Dow (DJINDICES: ^DJI  ) �dropped 110 points Thursday.
    � 1. Unfit forecasts rip lululemon stock We'll spare you the lame "downward dog" yoga references, but�lululemon (NASDAQ: LULU  ) �dropped 15.9% Thursday after a mixed earnings report. Although revenue topped expectations, rising 11% from last year to $385 million in the first quarter, same-store sales slipped 4%. Even worse, Lulumon cut its full-year revenue forecasts from $1.82 billion to $1.8 billion.

    Bad karma has been crushing the Lulu investor's lifestyle. Last year, the "see-through" Lululemon pants caused the company more than $60 million. Then, founder Chip Wilson had to step down last fall after some inappropriate comments -- there are actually�a whole bunch -- about tight black pants and women's bodies. The combo hasn't looked good on the stock.

    But Lulu-faithful are confident. New CEO Laurent Potdevin, formerly of TOM'S Shoes and Burton Snowboards, admitted that sales have been slower than expected. And the company's CFO just announced he's stepping down. But the company still plans to buyback $450 million in Lulu stock, which will increase the value of the stock for shareholders.
    The takeaway is that Lulu is harnessing positive energy, and now plans a major international expansion. The company plans to stretch out and add 20 stores in Europe and Asia by the end of 2017, with its first in Hong Kong early next year. Plus, it will be opening 14 pop-up stores in North America to lure new shoppers.

    2. Oil stocks celebrate, while airlines suffer from Iraqi violence A sudden onslaught of sectarian violence between the Iraqi government and armed Kurdish rebels has rocked
  • [By Ben Levisohn]

    JPMorgan’s call has helped airline stocks take flight today. JetBlue has gained 2.7% to $8.12 at 11:15 a.m., while American Airlines has climbed 3.1% to $36.14. Delta Air Lines (DAL) has advanced 1% to $37.21, United Continental Holdings (UAL) has risen 1.1% to $41.30 and Southwest Airlines (LUV) is up 1.1% at $24.44.

Top Airline Stocks To Own For 2014: 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 Monica Gerson]

    Gogo (NASDAQ: GOGO) shares jumped 8.46% to $25.90 in pre-market trading after the company reported better-than-expected fourth-quarter results.

    Posted-In: PreMarket GainersNews Pre-Market Outlook Markets Movers

  • [By John Udovich]

    Small cap Gogo Inc (NASDAQ: GOGO) leaped 10.04% yesterday after announcing its first international deal where it would provide in-flight Internet service on the entire domestic fleet of Japan Airlines (JAL)���meaning it might be a good idea to take a closer look at the stock along with�Iridium Communications Inc (NASDAQ: IRDM), another formerly highflying communications stock that hit heavy turbulence and ultimately crashed over a decade ago.

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