U.S. stocks opened higher� this morning, with the S&P 500 (SNPINDEX: ^GSPC ) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI ) up 0.75% and 0.8%, respectively, at 10:10 a.m. EDT.
The 777's first deadly crash: What impact for Boeing?
To what degree are markets and investors rational? In the wake of Saturday's spectacular crash at San Francisco International Airport, today's share performance of Dow component Boeing (NYSE: BA ) could provide a case study.
Tragically, two young Chinese women died when a Boeing 777 long-haul airliner operated by Asiana Airlines landed short of the runway, breaking its tail section before skidding across the runway and catching fire. The remaining 289 passengers and 16 crew evacuated the plane safely before the flames tore through the fuselage.
The 777 is one of the workhorses of the commercial aviation industry. Boeing says it has delivered 888 passenger versions of the jet, nearly half of which are the 777-200ER, the variant which was involved in Saturday's accident. The 777 has been in operation since 1995, and this the first fatal crash on its record.
Hot Value Companies To Watch In Right Now: Norwegian Air Shuttle ASA (NAS)
Norwegian Air Shuttle ASA is a Norway-based company active in the low-cost airline industry. It operates scheduled services with additional charter services. It has a route portfolio that stretches across Europe into North Africa and the Middle East, as well as Thailand and the US. The Company operates approximately 400 routes and over 120 destinations. It has a fleet of over 80 jet aircrafts, including Boeings 737-800, Boeings 787-8 Dreamliners, Boeings 737 MAX8 and Airbuses A320neo. It is the parent company of the Norwegian Group and operates through subsidiaries, including Norwegian Air Shuttle Polska Sp z o o, Norwegian Air Shuttle Sweden AB, Call Norwegian AS, NAS Asset Management Norway AS, among others. Advisors' Opinion:- [By GURUFOCUS]
EMC�� products ��both hardware and software - are litearlly a geek�� wonderland alphabet soup, which include Storage Area Network (SAN), Network Attached Storage (NAS), Direct Attached Storage (DAS), Virtual SAN, All-Flash XtremIO, Atmos, Avamar, �Data Domain, Isilon, Pivotal, ViPR Software Defined Storgae, VMAX, VNX, VNXe, VPLEX, VSPEX (none of these are typos).� Information storage makes up 70% of revenues and virtualization 23% of revenues.� Products generate 55% of revenues.� Services generate 45% of revenues.� The Company�� gross profit split is approximaltey 67% data storage and 31% virtualization.
Top 5 Airline Companies To Buy 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 Holly LaFon]
Michael then began to study Southwest Air (LUV), the most profitable airline in its industry. When Michael recently visited us and, when we asked, he described the epiphany he had at Love Field in Dallas more than twenty years ago when a Southwest Air plane landed. The Southwest Air plane was immediately surrounded by its ground crew that Michael thought looked like swarming locusts! The Southwest Air plane was quickly prepared for its next flight; its new passengers boarded; and the plane took off for its next destination in about half the time other airlines needed to prepare their planes for flight. Michael immediately grasped the reason Southwest Air planes produced more revenues and profits than others' planes. It was because they flew on average two more short haul flights every day than others! Michael put that lesson into practice at Ryanair. In the hub airports where his airline had previously operated, the inefficiencies of those welllocated facilities made it impossible to turn around a plane for takeoff in less than an hour. Ryanair then began to operate from less convenient and less crowded but more efficient regional airports. His goal was to turn around Ryan's planes in less than 25 minutes! Further, while flag carriers which land in hub airports pay an ever increasing amount per passenger, each year to use those facilities, Ryanair is paid to land at regional airports that are seeking jobs and tourists! Ryanair passes those savings on to its passengers, with significantly lower fares and better service. Of course, its customers need to be willing to travel using airports that are a little less convenient.While competitive flagship airlines are losing money or are marginally profitable, Ryanair is profitable and growing quickly.
Top 5 Airline Companies To Buy Right Now: SkyWest Inc (SKYW)
SkyWest, Inc. (SkyWest), incorporated in 1972, through subsidiaries, SkyWest Airlines, Inc. (SkyWest Airlines) and ExpressJet Airlines, Inc. (ExpressJet) operates the regional airline in the United States. In addition, the Company provides ground handling services for other airlines throughout its system. The Company operates in two segments: SkyWest Airlines and ExpressJet. On December 31, 2011, its subsidiary, ExpressJet Airlines, Inc. (ExpressJet Delaware) was merged into its subsidiary, Atlantic Southeast Airlines, Inc. (Atlantic Southeast), with the surviving company named ExpressJet Airlines, Inc. (the ExpressJet Combination). ExpressJet includes the operations of Atlantic Southeast Airlines, Inc. (Atlantic Southeast) and ExpressJet Airlines, Inc. (ExpressJet Delaware), which is prior to the ExpressJet Combination.
As of December 31, 2011, SkyWest and ExpressJet offered scheduled passenger and air freight service with approximately 4,000 total daily departures to different destinations in the United States, Canada, Mexico and the Caribbean. All of its flights are operated as Delta Connection, United Express, Continental Express, US Airways Express or Alaska under code-share arrangements with Delta, United Air Lines, Inc. (United), Continental Airlines, Inc. (Continental), US Airways Group, Inc. (US Airways) and Alaska Airlines (Alaska). As of December 31, 2011, its consolidated fleet consisted of a total of 732 aircraft, of which 443 were assigned to United and Continental, 268 were assigned to Delta, eight were in preparation for new code-share assignments, five were assigned to Alaska, four were subleased to affiliated entities, two were assigned to US Airways and two were subleased to unaffiliated entities. In addition, it provides electronic or paper copies of its filings free of charge upon request.
As of December 31, 2011, it operated two types of regional jet aircraft: the Bombardier Aerospace (Bombardier) regional jet, which include the 50-seat Bombardier CRJ20! 0 Regional Jet (the CRJ200), the 70-seat Bombardier CRJ700 Regional Jet (the CRJ700) and the 70-90-seat Bombardier CRJ900 Regional Jet (the CRJ900), and the 50-seat Embraer ERJ-145 regional jet (ERJ145). As of December 31, 2011, it also operated the 30-seat Embraer Brasilia EMB-120 turboprop (the Brasilia turboprop). During the year ended December 31, 2011, approximately 65.2% of the Company's aggregate capacity was operated under the United Express Agreements and Continental Express Agreement, approximately 33.6% was operated under the Delta Connection Agreements, approximately 0.9% was operated under the Alaska Capacity Purchase Agreement, approximately 0.1% was operated under the US Airways Express Agreement and approximately 0.2% was operated under a code-share agreement with AirTran Airways, Inc.
On November 17, 2011, SkyWest Airlines and US Airways entered into the SkyWest Airlines US Airways Express Agreement. As of December 31, 2011, SkyWest Airlines operated two CRJ200s under the SkyWest Airlines US Airways Express Agreement, flying a total of approximately ten US Airways Express flights per day between Phoenix and designated outlying destinations. On April 13, 2011, SkyWest Airlines and Alaska entered into the SkyWest Airlines Alaska Capacity Purchase Agreement. As of December 31, 2011, SkyWest Airlines operated five CRJ700s under the SkyWest Airlines Alaska Capacity Purchase Agreement, flying a total of approximately 30 Alaska flights per day between Seattle, Portland and designated outlying destinations.
As of December 31, 2011, SkyWest Airlines and ExpressJet scheduled the daily flights as Delta Connection carriers: 530 flights to or from Hartsfield-Jackson Atlanta International Airport, 316 flights to or from Salt Lake City International Airport, 132 flights to or from Minneapolis International Airport, 94 flights to or from Memphis International Airport, 94 flights to or from Detroit International Airport and 8 flights to or from Cincinnati/Northern Kentucky Inte! rnational! Airport.. As of December 31, 2011, SkyWest Airlines scheduled 15 daily flights as an Alaska carrier to or from Portland International Airport and 15 daily flights as an Alaska carrier to or from Seattle International Airport. As of December 31, 2011, SkyWest Airlines scheduled ten daily flights as an US Airways Express carrier to or from Phoenix International Airport.
As of December 31, 2011, SkyWest Airlines and ExpressJet scheduled the daily flights as a United or Continental Express carrier: 572 flights to or from Houston International Airport, 486 flights to or from Chicago O'Hare International Airport, 412 flights to or from Denver International Airport, 306 flights to or from San Francisco International Airport, 284 flights to or from Los Angeles International Airport, 214 flights to or from Newark International Airport, 148 flights to or from Washington Dulles International Airport, 128 flights to or from Cleveland International Airport and 64 flights to or from other airports. As of December 31, 2011, it operated 17 CRJ200s for United under a pro-rate agreement. The Company also operated one CRJ200 under a pro-rate agreement with Delta, as of December 31, 2011.
SkyWest Airlines
SkyWest Airlines provides regional jet and turboprop service primarily located in the midwestern and western United States. SkyWest Airlines offered approximately 1,650 daily scheduled departures as of December 31, 2011, of which approximately 1,110 were United Express flights, 500 were Delta Connection flights, 30 were Alaksa-coded flights and 10 were US Airways Express flights. SkyWest Airlines' operations are conducted from hubs located in Chicago (O'Hare), Denver, Los Angeles, Houston, Portland, Seattle, Phoenix, San Francisco and Salt Lake City. SkyWest Airlines' fleet as of December 31, 2011 consisted of 21 CRJ900s, all of which were flown for Delta; 96 CRJ700s, of which 70 were flown for United, 21 were flown for Delta and five were flown for Alaska; 153 CRJ200s, of which 82 ! were flown! for United, 61 were flown for Delta, eight were in preparation for service under a code-share agreement with US Airways and two were flown for US Airways; and 45 Brasilia turboprops, of which 35 were flown for United and 10 were flown for Delta.
As of December 31, 2011, SkyWest Airlines was conducting its Delta Connection operations pursuant to the terms of an Amended and Restated Delta Connection Agreement, which obligates Delta to compensate SkyWest Airlines for its direct costs associated with operating Delta Connection flights, plus a payment based on block hours flown (the SkyWest Airlines Delta Connection Agreement). SkyWest Airlines' United code-share operations are conducted under a United Express Agreement, pursuant to which SkyWest Airlines is paid primarily on a fee-per-completed block hour and departure basis, plus a margin based on performance incentives (the SkyWest Airlines United Express Agreement). During December 31, 2011, SkyWest Airlines entered into code-share agreements with Alaska and US Airways, pursuant to which SkyWest Airlines is paid primarily on a fee-per-completed block hour and departure basis, plus a fixed margin per aircraft each month.
ExpressJet
ExpressJet provides regional jet service principally in the United States, primarily from hubs located in Atlanta, Cleveland, Cincinnati, Chicago (O'Hare), Denver, Houston, Newark and Washington Dulles. ExpressJet offered more than 2,100 daily scheduled departures as of December 31, 2011, of which approximately 650 were Delta Connection flights and 1,450 were Continental Express or United Express flights. As of December 31, 2011, the combined fleet of ExpressJet consisted of 10 CRJ900s, which were flown for Delta, 46 CRJ700s,which were flown for Delta, 113 CRJ200s, 99 of, which were flown for Delta and 14 of, which were flown for United and 242 ERJ145s, which were flown for United or Continental.
Under the terms of a Second Amended and Restated Delta Connection Agreement exec! uted betw! een Delta and Atlantic Southeast and to, which ExpressJet is a party (the ExpressJet Delta Connection Agreement), Delta has agreed to compensate ExpressJet for its direct costs associated with operating Delta Connection flights, plus, if ExpressJet completes a certain minimum percentage of its Delta Connection flights, a specified margin on such costs. Under the ExpressJet Delta Connection Agreement, excess margins over certain percentages must be returned to or shared with Delta, depending on various conditions. ExpressJet's Continental and United code-share operations are conducted under a Capacity Purchase Agreement between ExpressJet and Continental (the Continental CPA) and two United Express Agreements between ExpressJet and United (collectively, the ExpressJet United Express Agreements), pursuant to, which ExpressJet is paid by Continental or United, as applicable, primarily on a fee-per-completed block hour and departure basis, plus a margin based on performance incentives.
The Company competes with Air Wisconsin Airlines Corporation, American Airlines, Inc. Delta Air Lines, Inc. Compass Airlines, Alaska Air Group, Inc. Mesa Air Group, Inc., Pinnacle Airlines Corp., Republic Airways Holdings Inc. and Trans State Airlines, Inc.
Advisors' Opinion:- [By Rich Duprey]
Passenger airline operator�SkyWest (NASDAQ: SKYW ) announced today its third-quarter dividend of $0.04 per share, the same rate it's paid since 2008.
- [By Adam Levine-Weinberg]
On Wednesday, I wrote that regional airline king SkyWest (NASDAQ: SKYW ) is a business under threat, due to the growing obsolescence of 50-seat jets. The company has long-term contracts to fly its fleet of more than 500 50-seat jets for various partners -- particularly Delta Air Lines (NYSE: DAL ) and United Continental (NYSE: UAL ) -- but once those contracts end, nobody will want these fuel-guzzling aircraft.
- [By Adam Levine-Weinberg]
Like other regional airlines, Republic Airways Holdings (NASDAQ: RJET ) has been hard hit by the growing U.S. pilot shortage. However, while rivals such as�SkyWest (NASDAQ: SKYW ) are struggling to stay in the black in this challenging environment, Republic's focus on more-profitable large regional jets is allowing it to boost earnings.
Top 5 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 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.
- [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.
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