JAL Group announced (07-Aug-09) plans to make “drastic adjustments” to its network and fleet size in 2HFY2009, in accordance with its FY2009 management plan and to more closely match capacity to demand sooner and allow the Group to improve profitability. In 2HFY2009, flight frequencies will be further reduced on eight international routes and six domestic routes and two international routes from Nagoya will be eliminated – see Route Changes Table for more information. A major downsizing of aircraft in this period will affect 15 flights on 14 international routes, where B747-400s will be switched to B777s and 767s, and B767s will be switched to B737s. JAL also plans to progress with the Premium Strategy, involving the addition of the latest JAL Suite in first class, Shell Flat Neo in business class, and the new cabin category, Premium Economy, with services from Tokyo Narita to Chicago, Los Angeles, Milan and Rome to be affected. The carrier also plans to launch Tokyo Haneda-Beijing service and increase Osaka Itami-Fukuoka frequency and enact some schedule changes to select international cargo services. [more – Full PDF]
JAL Group announces more network cuts from Oct-2009
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Cebu Pacific Air evaluates A350s, 787s & A330neos to support new long haul flights to US west coast
This is Part 4 in a series of analysis reports on the Philippine market.
Cebu Pacific Air has begun evaluating new-generation widebody aircraft with the objective of launching flights to the west coast of the US. The Philippine LCC is studying the A350, 787 and A330neo and plans to issue a formal tender to Airbus and Boeing in 3Q2017.
Cebu Pacific launched its long haul operation in 2013, with A330-300 services to Dubai. It now operates five long haul routes to the Middle East and Australia and also uses its A330 fleet on several short haul routes.
The airline is slated to take its eighth and final A330-300 in 1H2017, completing the first phase of its widebody strategy. Phase two of Cebu Pacific’s long haul strategy has always been to transition to a new longer-range widebody type and launch flights to California, which has the largest Filipino community not already served by Cebu Pacific. With new aircraft technology now available, and rival Philippine Airlines (PAL) pursuing rapid expansion in the US market, it is time for Cebu Pacific to strategically make its move.
Avianca airline group: bracing for changing Colombian market as Latin America starts to recover
Latin American airline group Avianca Holdings is welcoming continued improving trends in the region, which started to emerge in 2Q2016 and appear to be gaining strength in 2H2016. The company’s yield decreases slowed year-on-year in 3Q2016 to the single digits, and Avianca posted a rise in yields sequentially from 2Q2016 to 3Q2016.
Avianca’s optimism rests on robust load factors, particularly on long haul routes from its largest market – Colombia –to the US and Europe. Demand is also picking up in South America as travellers adjust to the effects of currency depreciation that, while improving, have become a mainstay in many markets in the region. Avianca’s booking trends for Nov-2016 and Dec-2016 indicate that positive momentum is continuing into 4Q2016.
The company faces changing dynamics in its largest market Colombia in late 2016 when Copa Airlines shifts its business model in the country to a low cost operation in order to compete more effectively. Avianca seems unconcerned about Copa’s change in strategy, citing its strong position in Colombia despite increased competition arising in the country’s domestic market during the last few years.
Colombia’s market should undergo further changes in 2017 when LATAM Airlines Group begins instituting a new pricing model in its domestic markets, including in Colombia.