Annual Report 2018 - Atlantic Airways
Annual Report 2018www.atlanticairways.com
1.1 Company InformationP/F Atlantic Airways, Faroe IslandsVágar AirportFO-380 SørvágurFaroe IslandsTel 298 34 10 00Fax 298 34 10 01Established 1987Reg. no. 1223VAT number 379778Domicile municipality: SørvágurWebsite: www.atlanticairways.comEmail: administration@atlantic.foBoard of directorsNiels Mortensen, ChairmanKaj Johannessen, Vice ChairmanLaila HentzeFróði MagnussenHanna SvaboJóhan MikkelsenManagementJóhanna á Bergi, CEOMarius Davidsen, CFOAuditorP/F JanuarState Authorized Public AccountantsSubsidariesP/F Hotel AtlanticAssociated companiesP/F Duty FreeP/F GreengateP/F GjáargarðurP/F Ognarfelagið matr. nr. 1332e02Annual Report 2018
1.2 Atlantic Airways in BriefOur origin and objectiveThe history of Atlantic Airways in briefAtlantic Airways was established in order to develop a Faroeseairline industry and aviation, and in doing so to establish aprofessional aviation environment in the Faroe Islands.Atlantic Airways was formed in 1987 shortly after the Faroesegovernment finalized negotiations with the Danish government to allow a Faroese operator to provide air services incompetition with Danish operators, who previously hadmono poly on flights between the Faroe Islands and Denmark.Since the company’s establishment in 1987, it has grown froma small company with one aircraft and limited capabilities toa company, which operates several aircraft and helicopters. Atyear-end 2018, Atlantic Airways had 184 full-time equivalentemployees, and operated 3 aircrafts and 2 helicopters.Atlantic Airways exists to connect the Faroe Islands to theworld, to tie the islands closer together and for safety. AtlanticAirways operates a regular, flexible and diverse route networkfrom the Faroe Islands with competitive prices. The airlineuses state of the art technology and equipment, and it usesfully modern communication services. The customer is at thecentre of all our activities. We work closely with customersand the community to better our services and experiences.For Atlantic Airways, safety comes first, regularity is a constant goal, the customer is at the centre of all matters, the employees are skilled and service-minded, and the results createvalue. The company’s field of activities is scheduled flightsand helicopter flights with the Faroe Islands as our cornerstone, as well as charter flights using excess capacity. In addition, the field of activities are developed from the airline’score competences and we participate in the development ofthe tourism industry, cargo transportation and other forms oftransportation.In the airline’s stated objectives, the scheduled flights are divided into Denmark, NORTH and SUN routes, in additionto the new destinations of Paris and the planned destinationof New York. The number of low-price tickets has increasedsignificantly, both on the Denmark route and on the NORTHroutes. The NORTH routes have improved connection between the Faroe Islands and the neighbouring countries ofIceland, Norway and Scotland significantly. Helicopter rescue services and scheduled services are today conducted withmodern helicopters, which has increased the service level significantly for the remoter parts of the islands, as well as forsailors and other travellers.Atlantic Airways has continually developed airline travel toand from the Faroe Islands since the first operation in 1988on 28 March. The number of departures to Copenhagen hasincreased to three per day during high season, and the company offers flight connections both morning and evening. Since1995, the company has stepwise established flight connections to the neighbouring countries Iceland, Norway and UKas well as high season connections to southern Europe. Thiscontinued development has increased passenger numbersat Vágar Airport from around 90,000 in 1995 to more than378.000 in 2018. Additionally, the company has been at theforefront in promoting the Faroe Islands abroad as a touristdestination, as well as in developing local tourism.The company has provided domestic helicopter services inthe Faroe Islands since 1994 and Search and Rescue (SAR/HEMS) since 2001. In addition, Atlantic Airways has assisted all oil companies involved in oil exploration in Faroesewaters.Atlantic Airways has from day one focused on qualifying thework force in the Faroe Islands to conduct a range of jobswithin the aviation industry. Atlantic Airways has trained hundreds of people as engineers, pilots, cabin crew as well asother jobs within the field of aviation.Atlantic Airways also prioritizes to be a valued and respectedmember of our local society, creating value, competences andjobs for the Faroese community.Annual Report 201803
Table of Contents1. General1.1 Company Information.21.2 Atlantic Airways in Brief. 31.3 Financial highlights and key ratios.52. Management’s Review2.1 Management’s Review. 62.2 Operational Review. 82.3 Financial Review. 122.4 Events after the End of the Financial Year. 132.5 Outlook for 2019.142.6 Ownership.162.7 Corporate Governance. 172.8 Risk Management.212.9 Knowledge and Human resource.232.10 Corporate social responsibility. 243. Statement and Report3.1 Management’s Report. 283.2 Independent Auditors’ Report. 304. Annual Accounts4.1 Income Statement.324.2 Balance Sheet.334.3 Statement of Changes in Equity.354.4 Cash flow Statement.374.5 Overview of Notes.384.6 Notes.395. Definitions5.1 Definitions.5804Annual Report 2018
1.3 Financial highlights and key ratio groupIncome statement (DKK 1,000)Net salesOther incomeResult before depr., amort. and impairm. (EBITDA)Result before financial items (EBIT)Result before tax (EBT)Result after ce sheet (DKK 1,000)Non-current assetsCurrent assetsTotal 976438,011EquityProvisionsLong-term debtCurrent liabilitiesTotal equity and ,66331,06196,594126,693438,011Cash flows (DKK 1,000)Net cash flow from operating activitiesNet cash flow used in investing activities*Net cash flow from financing activitiesCash flows for the ,183-59,56188,654-14,786-87,309-13,441*Of this purchase of property, plant and 8232Financial ratiosEBITDAR (DKK 1,000)EBITDAR margin (%)Return on investment (%)Current ratio (%)Solvency ratio (%)Return on equity after tax (%)Traffic statisticsNumber of passengers - scheduled servicesNumber of passengers - fixed wingBlock hours - fixed wingCapacity - scheduled flight (ASK) (1,000)Traffic - scheduled flight (RPK) (1,000)Load factor - scheduled services (%)Other statisticsNumber of full-time employeesAircraft operated as at 31 DecemberHelicopters operated as at 31 DecemberAnnual Report 201805
2.1 Management’s ReviewOperations 2018Goals and objectivesThe financial year 2018 yielded a higher result for AtlanticAirways than the previous year. The full-year result for 2018after tax was DKK 16.2 million in 2018 compared to DKK3.3 million in 2017. An increase in passenger numbers as wellas an increase in charter activities affected the annual resultpositively. However, lower average ticket prices in scheduledservices affected the result negatively. The result before taxwas DKK 19.8 million in 2018 compared to DKK 4.1 millionin 2017, an increase of DKK 15.7 million in 2018. Earningsbefore interest, depreciation and amortization (EBITDA)were DKK 84 million in 2018 compared to DKK 69 millionthe previous year, an increase of 21%. Total revenue for theyear 2018 was DKK 546.9 million in 2018, an increase of 6%over 2017, when revenues were DKK 515.1 million.Atlantic Airways exists to connect the Faroe Islands to theworld for the benefit of the Faroese people and Faroese society, all the while providing foreigners with more opportunitiesto visit the Faroe Islands, and to tie the islands closer to gether,as well as for safety. Atlantic Airways operates a regular, flexible and diverse route network from the Faroe Islands withcompetitive prices. The airline uses state of the art technologyand equipment, and it uses fully modern communication services. The customer is at the centre of all our activities. Wework closely with customers and the community to better ourservices and experiences.Two brand new A320neo Aircraft on their wayIn May/June of 2019, Atlantic Airways will welcome the firstof two brand new Airbus 320neo aircraft, which the airlinewill lease from the American lease company, Air Lease. Thisaircraft will replace a leased A319 aircraft, which will be returned in July of 2019. The second aircraft will arrive in springof 2020. The Airbus A320neo aircraft, which seat 174 passengers, have lower oil usage and lower CO2 emission than thecurrent Airbus aircraft. Just as the current aircraft, the newaircraft will also be fitted with the state of the art Airbus navigational system Airbus, RNP AR 0.1, which has improvedregularity on the route to and from Vagar. It is necessary toconstruct a new hanger in Vagar because of the new aircraft.Lower CO2 Emission than 10 Years AgoIn 2018, the total CO2 emissions from Atlantic Airways’scheduled services were 40,611 tonnes, which is 4% lowerthan ten years ago. CO2 emissions from scheduled servicesin 2008 was approximately 42,300 tonnes. CO2 emissionsfor each passenger in the same time period has decreased by33%. The drop in CO2 emission stems from the fleet renewalwhere Atlantic Airways replaced its old Avro RJ aircraft withnewer Airbus aircraft, thereby reducing fuel consumption andincreasing passenger capacity. Atlantic Airways has registeredits fuel consumption as well as CO2 emission caused by theairline’s operations since 2010 because of environmental requirements placed by the EU.The new Airbus A320neo aircraft that Atlantic Airways willreceive this year and the next use far less fuel and have lowerCO2 emission, no less than 15% compared to the older aircraft.06Annual Report 2018For Atlantic Airways, safety comes first, regularity is a constant goal, the customer is at the centre of all matters, the employees are skilled and service-minded, and the results createvalue. The company’s field of activities is scheduled flightsand helicopter flights with the Faroe Islands as our cornerstone, as well as charter flights using spare capacity. In add ition, the field of activities are developed from the airline’score competences and we participate in the development ofthe tourism industry, cargo transportation and other forms oftransportation.Continuous developmentsThe airline is constantly working to make necessary improvements for the benefit of our customers and the airline in asensible manner. We will continue this in 2019.In 2019, onboard catering will be reorganised presenting customers with a wider range of products to order before departure, as well as decreasing the selection in order to diminishpossible waste resulting from our services. In addition, cutleryand containers relating to onboard catering will be exchangedfor environmentally friendly, bio-degradable cutlery.Atlantic Airways is at the forefront when it comes to developing aviation to the surrounding world and Faroese tourism.This is why the airline will take up regular flights betweenVagar and the French capital of Paris on 1 July this year. Therewill be three scheduled flights a week in the time period: July–September and twice a week in the time period October–December. This new route will improve travel opportunities forthe Faroese people, both regarding business travels as well asleisure travel. It will also make it easier for foreign travellersto come and visit our beautiful country. In 2019, we also planto embark on a new direct seasonal route between Vagar andNew York in autumn of 2019.
Number of seats has never been higher than it is now, and itwill increase further when the airline welcomes its new AirbusA320neo aircraft into the fleet.most advanced airspace technology in Europe, all of AtlanticAirways’ aircraft are capable of landing safely in significantlylower visibility than a few years ago.Codeshare co-operationFinancial Outlook 2019The airline is also working purposefully to strengthen co-operation with other airlines. In January of 2019, Atlantic Airwaysand Dutch airline KLM entered into a codeshare agreement,which means that several of Atlantic Airways’ main scheduledflights also carry the KLM flight number, enabling KLM travellers to travel all the way to the Faroe Islands. The agreementis ground-breaking in a Faroese context and it entails that theFaroe Islands make the list of all 165 KLM travel destinationsaround the world. Atlantic Airways intends to make more suchagreements in the future.The airline expects the result for 2019 to be in the same rangeas 2018. The airline expects more passengers, but lower revenues for each passenger, due to the market competition withgreat supply of seats compared to passenger numbers.Hilton Garden Inn Faroe IslandsIn autumn of 2018, Atlantic Airways established the subsidiary P/F Hotel Atlantic in collaboration with TryggingarfelagiðLÍV, which will construct a new Hotel in Tórshavn. The newhotel, which will be run by Atlantic Airways, will be a HiltonGarden Inn hotel and consequently be part of the world-famous Hilton chain of hotels, which has some 85 million customers, and which is capable of attracting customers to theFaroe Islands from e.g. Asia and the USA, where the Hiltonchain is particularly strong. Martin Restorff, who has manyyears of experience in the hotel business, has been appointed manager of the hotel. The new hotel with 130 rooms andseveral conference rooms is expected to open in the summerof 2020.Competition10% more passengers travelled on the airline’s scheduled services in 2018 compared to 2017, while the number of passengers through Vagar airport increased by 11%. The competitionon the route to Copenhagen with significant supply of seatscompared to demand entailed lower average ticket price in2018. Atlantic Airways would like to thank the people of theFaroe Islands and foreign travellers for welcoming the company and our destinations.On-time performanceIn 2018, departure punctuality, measured as scheduled departures within 15 minutes of scheduled departure time, was 83%.These last four years, on-time performance has improved by 8percentage points. The airline’s investment in the navigationalsystem RNP AR 0.1 has been a main cause of the improvement in departure punctuality these last four years. Using theAnnual Report 20187
2.2 Operational ReviewProduction in block hours 720182,0001,0000Scheduled services accounted for 60% of fleet production in2018, ACMI/charter operations for 31% and helicopter ser vices accounted for 9%. In 2017, scheduled services accounted for 64% of fleet production, ACMI/charter operations for26% and helicopter services accounted for 10%.201420152016Numbers of passangers 5% 8% 1 4%ACMI/charter operations increased by 33% from 2,220 blockhours in 2017 to 2,943 block hours in 2018.20072008200920102011201220132014Scheduled servicesThe total number of passengers carried on scheduled services increased by 10% in 2018 to 307,533 passengers. Theincrease was 27,189 passengers, which come from most ofthe airline’s routes. Excess capacity on the Copenhagen routecontinues to negatively affect average ticket price and load280,344-5% 10%-1%282,062-9%212,071 1%Scheduled services increased by 2% from 5,522 block hoursin 2017 to 5,633 block hours in 2018.Helicopter activity remained relatively unchanged in 2018. In2018, block hours were 901 compared to 890 hours in 2017. 6% 13%267,126The total fleet production (the number of block hours) increased by 10% in 2018 compared to 2017, especially dueto an increase in charter activity. Fixed-wing and rotor-wingaircraft were airborne for a total of 9,477 block hours in 2018compared to 8,632 block hours in 2017.201520162017307,533The total number of passengers on the company’s scheduledservices increased in 2018 from 280,344 passengers in 2017to 307,533 passengers in 2018. The increase is 10%. Thefixed-wing fleet was airborne for 8,576 block hours comparedto 7,742 block hours in 2017. A production increase of 11%.10,0002018factor. The increase at Vágar airport in 2018 was 36,425 pass engers, or 11%.The seasonal fluctuations in scheduled traffic remains high.Frequencies to Danish airports vary from 15 per week duringthe traditionally low-activity winter season to 30 per weekduring high season in the summer season.Charter operationsCharter/ACMI activity increased from 2,220 block hours in2017 to 2,943 block hou
year-end 2018, Atlantic Airways had 184 full-time equivalent employees, and operated 3 aircrafts and 2 helicopters. Atlantic Airways exists to connect the Faroe Islands to the world, to tie the islands closer together and for safety. Atlantic Airways operates a regular, flexible and diverse route network
Siamese Airways and Siam Overseas Airways and formed Thai Airways (The Strait Times, 1951). Thai Airways at this time became the exclusive carrier in the Kingdom of Thailand. In 1960, Thai Airways has created Thai Airways International, which is a joint venture between the Thai Airways Co
76 / British Airways 2008/09 Annual Report and Accounts Independent auditor’s report to the members of British Airways Plc We have audited the Group and Parent Company financial statements (the ‘financial statements’) of British Airways Plc for the year ended March 31, 2009, which comprise the Group
7 bangkok airways pg 829 1a 8 british airways p.l.c. ba 125 1a 10 cathay pacific airways cx 160 1a 11 china southern airlines cz 784 own system 12 ethiopian airlines enterprise et 71 1s 13 etihad airways ey 607 1s 14 emirat
Test Name Score Report Date March 5, 2018 thru April 1, 2018 April 20, 2018 April 2, 2018 thru April 29, 2018 May 18, 2018 April 30, 2018 thru May 27, 2018 June 15, 2018 May 28, 2018 thru June 24, 2018 July 13, 2018 June 25, 2018 thru July 22, 2018 August 10, 2018 July 23, 2018 thru August 19, 2018 September 7, 2018 August 20, 2018 thru September 1
Boardwalk Gifts and Souvenirs 1,000 8/31/2020 1,000 Atlantic City Atlantic NEW YORK STYLES BARBER SHOP NEW YORK STYLES BARBER SHOP 1,000 8/6/2020 1,000 Atlantic City Atlantic . El Tacuate Restaurant Don Samuel 1,000 8/13/2020 1,000 Atlantic City Atlantic
British Airways Plc (‘British Airways’, ‘BA’, ‘the airline’ or ‘the Group’) is the UK’s largest international scheduled airline and one of the world’s leading global airlines. The Group’s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
British Airways ex London City South African Airways ex London Heathrow, Frankfurt and Munich China Southern Airlines and KLM Royal Dutch Airlines ex Istanbul Atatürk Of particular note is the new business relationship built with premium carrier South African Airways at three of DO & CO’s locations.
accounting and bookkeeping principles, practices, concepts and methods featured in the unit and there was good evidence of preparation and practice with regard to structure, format and presentation of accounting data and information among the sound financial statements, double-entry bookkeeping and cash budgets submitted. That said, this is not a unit solely of numbers or arithmetic and there .
