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SpaceshipDC10
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Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Sep 11, 2020 4:29 pm

The layoffs would reduce Transat’s workforce by about 40 per cent and likely come after the end of the federal wage subsidy — scheduled to expire Dec. 19 — “if the situation does not improve rapidly,” CEO Jean-Marc Eustache said


"Improve rapidly." Not sure what he has in mind with that, I fear it won't happen soon, seeing how the situation is still fragile or going in the wrong direction in some of TS's European destinations.

Transat shares now hover just above $5, more than 70 per cent below the $18 per share Air Canada pledged in its takeover bid.

European regulators are expected to reach a decision on the deal by Dec. 11. The Trudeau government has not yet announced a thumbs-up or -down, which “may come at any time,” Eustache said.


What impact the current health situation will have on the regulators' decisions?

“Furthermore, should Air Canada remain interested in Transat from a strategic and financial perspective, it is possible that a lower offer may be made.”


That's a good point. Lots of uncertainty for TS' people.

https://globalnews.ca/news/7326534/tran ... ronavirus/
 
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Revelation
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Sep 11, 2020 7:34 pm

SpaceshipDC10 wrote:
“Furthermore, should Air Canada remain interested in Transat from a strategic and financial perspective, it is possible that a lower offer may be made.”

That's a good point. Lots of uncertainty for TS' people.

https://globalnews.ca/news/7326534/tran ... ronavirus/

Doesn't AC have a responsibility to its people to adjust its offer based on the unprecedented changes in the airline industry?
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CXH
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Sep 11, 2020 10:02 pm

Not that it changes the grim situation, but the the Transat Group (Transat A.T. Inc.) has/had 5100 staff. That includes one or more tour operators, an airline, travel agencies, and partial (full?) interest in some hotels. Actually, I don't know if they still own resort hotels in the Caribbean and Mexico anymore.

So not all those layoffs will be at the airline. The news article doesn't make that clear, and conflates Air Transat the airline and Transat the Group.
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MIflyer12
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Sep 11, 2020 11:11 pm

Revelation wrote:
Doesn't AC have a responsibility to its people to adjust its offer based on the unprecedented changes in the airline industry?


Which AC people? Employees, or shareholders?

Maybe this will get merged into the Air Transat acquisition thread, but I don't see the value for AC at this point. They've got plenty of surplus planes and people to operate any routes they want. IMHO this was about eliminating a competitor. COVID may well do that.
 
YYZatcboy
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Sep 11, 2020 11:37 pm

MIflyer12 wrote:
Revelation wrote:
Doesn't AC have a responsibility to its people to adjust its offer based on the unprecedented changes in the airline industry?


Which AC people? Employees, or shareholders?

Maybe this will get merged into the Air Transat acquisition thread, but I don't see the value for AC at this point. They've got plenty of surplus planes and people to operate any routes they want. IMHO this was about eliminating a competitor. COVID may well do that.


It could also have been about preventing Transat from being bought by another party such as ONYX for merger into WJA. That scenario is just as unlikely now too, but there could have been other reasons for merging with TS than just eliminating a competitor, especially given the likely slot divestitures that the Canadian/European authorities might require if it goes through.
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SpaceshipDC10
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Sep 11, 2020 11:55 pm

CXH wrote:
So not all those layoffs will be at the airline. The news article doesn't make that clear, and conflates Air Transat the airline and Transat the Group.


In fact it's the title that misleads, perhaps because the airline part has a greater impact on people's memories.

Transat AT Inc. expects to permanently lay off at least 2,000 Canadian employees after revenues fell 99 per cent last quarter, when the travel company operated flights for just one week.
 
Australia2USA
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Sat Sep 12, 2020 3:45 am

Should Air Transat now look at flying old Canada 3000 routes to Australia/NZ/South Pacific ?

Totally different market to AC.

Package holidays maybe the next growth industry in Australia.

Plenty of pent up demand in Australia at least & the young are getting heaps of govt welfare, which they are & will spend.

Know that many price sensitive Australians fly to Canada via Asia, USA or NZ, as almost always much cheaper than nonstops on AC or QF.

IIRC Canada 3000 flew their A332s to Australia twice a week. Think they had 340 all economy seats & flew via Hawaii (HNL ?)
 
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CrewBunk
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Sat Sep 12, 2020 4:57 am

With COVID restrictions, there is no travel between Canada and Australia. Pre-COVID it wasn’t hard to find a round trip fare on a non stop between Canada and Australia for less than CAD800 (USD600). If an Asian carrier wants to fly someone cheaper, adding 35% to the distance ..... good luck to them, they sure weren’t making any money doing it.

C3 started in the South Pacific to NAD using 757s. Eventually extending it to SYD, RAR and AKL, using both the A330 as you state and the 757. Toward the end, they both had premium cabins.

Don’t forget though, no other Canadian airline was flying south of HNL at the time. (It was a code share with QF).

After the merger, when AC took over the route, then with daily service to SYD from YVR/YYZ, the business just wasn’t there for leisure airlines. As we know, it matured to 2 or 3 times a day between Canada and Australia, with 3 times a week to New Zealand.

Transat would have a tough time competing, as fares were pretty low. However .... being a leisure airline, selling package tours, Transat would have a better shot at old C3 destinations like RAR or NAD. But all told, it’s going to be pretty risky starting any new destinations after travel restrictions lift.
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Thenoflyzone
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Sat Sep 12, 2020 12:12 pm

Australia2USA wrote:
Should Air Transat now look at flying old Canada 3000 routes to Australia/NZ/South Pacific ?

Totally different market to AC.

Package holidays maybe the next growth industry in Australia.

Plenty of pent up demand in Australia at least & the young are getting heaps of govt welfare, which they are & will spend.


TS isn't going to fly to Australia.

1. TS's A332 dont have the legs to fly non stop YVR-SYD. And if you're not going to fly there non stop, no sense in flying there at all.

2. Let's assume for a minute the A332 can fly the route. Why on earth would they fly 53% longer than their longest route (YYZ-ATH), when the yields will definitely not make up for the difference.

3. They've canceled most of their western Canada operations so they can cut down costs. Long hauls are only operating out of YUL and YYZ at the moment. Don't see that changing until this covid mess is over and done with.

4. Transat's bread and butter has always been Eastern Canada to Europe flights in the summer season, and then mostly Florida/Caribbean/Central America runs in the winter. That is a sound strategy. And their new found fleet (A321LRs) is the perfect plane for both those missions. Starting Australia runs would require them to deviate from that strategy. It would require them to buy a new plane capable of flying non stop to SYD, train the pilots/crew on said plane, partner with a new tour operator from down under, and do heavy marketing to capture the Australian POS, as Transat's brand is virtually underheard of in Australia. All of these are added costs, with no real gains to be had.

It's not going to happen. And there is plenty of pent up demand in Canada as well. When travel restrictions ease, that will become evident.

Fliplot wrote:
Lousy airline
With lousy practices
Zero communication
Zero refunds


Care to elaborate?

Most Canadian airlines aren't offering refunds. So that is not a Transat specific thing. Lousy airline is a matter of opinion. I'm mostly interested in why you said "lousy practices and 0 comms". Is that from a paying passenger point of view or an employee?
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SpaceshipDC10
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Sun Sep 13, 2020 2:57 pm

Australia2USA wrote:
Should Air Transat now look at flying old Canada 3000 routes to Australia/NZ/South Pacific ?


How did it work for C3? Can't see TS trying it.


IIRC Canada 3000 flew their A332s to Australia twice a week. Think they had 340 all economy seats & flew via Hawaii (HNL ?)


Correct, and before the A330s, they flew down under with 757s.
 
wantoflynow
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Mon Sep 14, 2020 3:42 am

Thenoflyzone wrote:
Australia2USA wrote:
Should Air Transat now look at flying old Canada 3000 routes to Australia/NZ/South Pacific ?

Totally different market to AC.

Package holidays maybe the next growth industry in Australia.

Plenty of pent up demand in Australia at least & the young are getting heaps of govt welfare, which they are & will spend.


TS isn't going to fly to Australia.

1. TS's A332 dont have the legs to fly non stop YVR-SYD. And if you're not going to fly there non stop, no sense in flying there at all.

2. Let's assume for a minute the A332 can fly the route. Why on earth would they fly 53% longer than their longest route (YYZ-ATH), when the yields will definitely not make up for the difference.

3. They've canceled most of their western Canada operations so they can cut down costs. Long hauls are only operating out of YUL and YYZ at the moment. Don't see that changing until this covid mess is over and done with.

4. Transat's bread and butter has always been Eastern Canada to Europe flights in the summer season, and then mostly Florida/Caribbean/Central America runs in the winter. That is a sound strategy. And their new found fleet (A321LRs) is the perfect plane for both those missions. Starting Australia runs would require them to deviate from that strategy. It would require them to buy a new plane capable of flying non stop to SYD, train the pilots/crew on said plane, partner with a new tour operator from down under, and do heavy marketing to capture the Australian POS, as Transat's brand is virtually underheard of in Australia. All of these are added costs, with no real gains to be had.

It's not going to happen. And there is plenty of pent up demand in Canada as well. When travel restrictions ease, that will become evident.

Fliplot wrote:
Lousy airline
With lousy practices
Zero communication
Zero refunds


Care to elaborate?

Most Canadian airlines aren't offering refunds. So that is not a Transat specific thing. Lousy airline is a matter of opinion. I'm mostly interested in why you said "lousy practices and 0 comms". Is that from a paying passenger point of view or an employee?

in response to above,

1) don't think anyone is suggesting TS try to fly nonstop YVR/SYD. 2T used to fly YVR/HNL/BNE/SYD (same aircraft so they could call all combined sectors direct)

If not stop at HNL, there are plenty of pacific nations they could stop at. So A330s perfect aircraft.

TS could be ACs low cost, as Jetstar is to Qantas.
 
9252fly
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Mon Sep 14, 2020 4:33 am

wantoflynow wrote:
Thenoflyzone wrote:
Australia2USA wrote:
Should Air Transat now look at flying old Canada 3000 routes to Australia/NZ/South Pacific ?

Totally different market to AC.

Package holidays maybe the next growth industry in Australia.

Plenty of pent up demand in Australia at least & the young are getting heaps of govt welfare, which they are & will spend.


TS isn't going to fly to Australia.

1. TS's A332 dont have the legs to fly non stop YVR-SYD. And if you're not going to fly there non stop, no sense in flying there at all.

2. Let's assume for a minute the A332 can fly the route. Why on earth would they fly 53% longer than their longest route (YYZ-ATH), when the yields will definitely not make up for the difference.

3. They've canceled most of their western Canada operations so they can cut down costs. Long hauls are only operating out of YUL and YYZ at the moment. Don't see that changing until this covid mess is over and done with.

4. Transat's bread and butter has always been Eastern Canada to Europe flights in the summer season, and then mostly Florida/Caribbean/Central America runs in the winter. That is a sound strategy. And their new found fleet (A321LRs) is the perfect plane for both those missions. Starting Australia runs would require them to deviate from that strategy. It would require them to buy a new plane capable of flying non stop to SYD, train the pilots/crew on said plane, partner with a new tour operator from down under, and do heavy marketing to capture the Australian POS, as Transat's brand is virtually underheard of in Australia. All of these are added costs, with no real gains to be had.

It's not going to happen. And there is plenty of pent up demand in Canada as well. When travel restrictions ease, that will become evident.

Fliplot wrote:
Lousy airline
With lousy practices
Zero communication
Zero refunds


TS could be ACs low cost, as Jetstar is to Qantas.


Where does Rouge fit into that scenario?
 
Weatherwatcher1
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Mon Sep 14, 2020 4:40 pm

Time is not a friend for mergers and acquisitions. This quote from the article is interesting

“Furthermore, should Air Canada remain interested in Transat from a strategic and financial perspective, it is possible that a lower offer may be made.”



I can see plenty of reasons why Air Canada isn’t interested in Air Transat any more.
 
abrelosojos
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Mon Sep 14, 2020 6:27 pm

What is TS flying right now?

Saludos,
Alex
Live, and let live.
 
SpaceshipDC10
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Wed Sep 30, 2020 11:35 am

abrelosojos wrote:
What is TS flying right now?

Saludos,
Alex


A21N. Whatever the future has in store for TS, I don't how many of their 20 A330s will return to service, especially the -300s.
 
AIRTRANSAT767
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Thu Oct 01, 2020 8:24 pm

Air Transat is a strong company, very strong and never doubted this company "
i love air transat and fan all boeing
 
SpaceshipDC10
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Oct 02, 2020 9:44 am

AIRTRANSAT767 wrote:
Air Transat is a strong company, very strong and never doubted this company "


The fact that in pre-Covid times they were loosing money and struggling to the point of considering a buy-out by AC don't really say they are that strong. For travellers, espicially in QUébec, they may well be respected, but that doesn't provide much money.
 
jimbo737
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Oct 02, 2020 3:35 pm

Pan Am, Wardair, Swissair and countless others were "well respected".

That, and $1.50, will get you a cup of hot steaming jack squat.
 
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usdcaguy
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Sat Oct 03, 2020 6:08 pm

Sad to see this happening to someone competing against AC, who needs all the competition it can get. Thank goodness for WS.
 
777luver
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Sat Oct 03, 2020 8:44 pm

usdcaguy wrote:
Sad to see this happening to someone competing against AC, who needs all the competition it can get. Thank goodness for WS.


Why does AC need competition? Competition is healthy, I’m genuinely interested in what your reasons are?
 
tribird1011
Posts: 217
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Sun Oct 04, 2020 5:16 am

SpaceshipDC10 wrote:
abrelosojos wrote:
What is TS flying right now?

Saludos,
Alex


A21N. Whatever the future has in store for TS, I don't how many of their 20 A330s will return to service, especially the -300s.



Whenever a return to (somewhat) normal occurs, the plans call 12 of 20 A330's returning to service. 1 out of 4 -300's will remain (C-GTSD) given its longer range compared to its -300 siblings. (and also the only airplane in the fleet in a 2-4-2 configuration :smile: )

As for the 200's, these are most likely not returning (not confirmed) -- GTSI / GTSR / GGTS / GTSN / GUBD

The B737's are essentially done as well -- GTQJ has already left, GTQF should be next. But between now and then (whenever that is) who knows what will happen...

Strange times!!
 
SpaceshipDC10
Topic Author
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Mon Oct 05, 2020 6:48 pm

tribird1011 wrote:
But between now and then (whenever that is) who knows what will happen...

Strange times!!


Very true. Will the acquision be done or not, and if no, what's next?
 
SpaceshipDC10
Topic Author
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Tue Oct 06, 2020 11:11 am

tribird1011 wrote:
As for the 200's, these are most likely not returning (not confirmed) -- GTSI / GTSR / GGTS / GTSN / GUBD


First retirement confirmed.

A330 -243 427 C-GTSI Air Transat ferried 05oct20 YUL-MZJ on return to lessor ex OK-GBB
 
danipawa
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Tue Oct 06, 2020 1:16 pm

Airbus A321 -211 2912 YL-LCZ smartLynx Airlines ferried 05oct20 YUL-KEF-RIX after lease to Air Transat ex C-GJLT

https://www.skyliner-aviation.de/regdb. ... av4&page=2
 
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usdcaguy
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Oct 09, 2020 4:28 pm

777luver wrote:
usdcaguy wrote:
Sad to see this happening to someone competing against AC, who needs all the competition it can get. Thank goodness for WS.


Why does AC need competition? Competition is healthy, I’m genuinely interested in what your reasons are?


AC needs competition so the flying public is not price-gouged every time they fly, and particularly to captive markets in Canada. That is why mergers are always reviewed by authorities
 
777luver
Posts: 567
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Oct 09, 2020 7:28 pm

usdcaguy wrote:
777luver wrote:
usdcaguy wrote:
Sad to see this happening to someone competing against AC, who needs all the competition it can get. Thank goodness for WS.


Why does AC need competition? Competition is healthy, I’m genuinely interested in what your reasons are?


AC needs competition so the flying public is not price-gouged every time they fly, and particularly to captive markets in Canada. That is why mergers are always reviewed by authorities


So WS isn’t equally as much of a price gouger? Okay then
 
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usdcaguy
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Oct 09, 2020 8:16 pm

777luver wrote:
usdcaguy wrote:
777luver wrote:

Why does AC need competition? Competition is healthy, I’m genuinely interested in what your reasons are?


AC needs competition so the flying public is not price-gouged every time they fly, and particularly to captive markets in Canada. That is why mergers are always reviewed by authorities


So WS isn’t equally as much of a price gouger? Okay then


It would be much worse if they weren’t there’s. And even better if Air Transat were going to stick around.
 
 
skipness1E
Posts: 4935
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Mon Oct 19, 2020 10:44 pm

tribird1011 wrote:
SpaceshipDC10 wrote:
abrelosojos wrote:
What is TS flying right now?

Saludos,
Alex


A21N. Whatever the future has in store for TS, I don't how many of their 20 A330s will return to service, especially the -300s.



Whenever a return to (somewhat) normal occurs, the plans call 12 of 20 A330's returning to service. 1 out of 4 -300's will remain (C-GTSD) given its longer range compared to its -300 siblings. (and also the only airplane in the fleet in a 2-4-2 configuration :smile: )

As for the 200's, these are most likely not returning (not confirmed) -- GTSI / GTSR / GGTS / GTSN / GUBD

The B737's are essentially done as well -- GTQJ has already left, GTQF should be next. But between now and then (whenever that is) who knows what will happen...

Strange times!!

Speaking of the A330-200s, C-GUBL went to Rio on 3 March and hasn't been seen since. Returned to leasor?
 
crosscheckyyz
Posts: 45
Joined: Mon Mar 02, 2020 1:50 am

Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Tue Oct 20, 2020 2:11 am

skipness1E wrote:
Speaking of the A330-200s, C-GUBL went to Rio on 3 March and hasn't been seen since. Returned to leasor?


Most likely maintenance at TAP/ME
 
Thenoflyzone
Posts: 3111
Joined: Sun Jan 07, 2001 4:42 am

Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Tue Oct 20, 2020 2:54 am

TS has been sending A310s and A330s to GIG for heavy maintenance since September 2008.

https://www.aviationpros.com/home/press ... aintenance
us Air Traffic Controllers have a good record, we haven't left one up there yet !!
 
tribird1011
Posts: 217
Joined: Mon Mar 14, 2005 10:08 pm

Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Thu Oct 22, 2020 7:56 pm

skipness1E wrote:
Speaking of the A330-200s, C-GUBL went to Rio on 3 March and hasn't been seen since. Returned to leasor?


Went down for C-check, and due to lack of flying (total shutdown in April) has stayed there for storage. C-GUBD went to join it a few days ago, and C-GUBC will be joining them in the near future. They will return when "normalcy" returns, but at this point, who knows when that is...
 
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YMX4ever
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Re: Air Transat revenues drop by 99%, with 2,000 layoffs expected

Fri Oct 23, 2020 1:39 pm

They shut down for a few months APR-JUL I believe so those results were expected but very heartbreaking to see airlines continue to be crippled like this due to the pandemic

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