United Airlines announced (18-Jun-2013) it has become the North American launch customer for the Boeing 787-10. It increased its 787 order to 65 aircraft (including six previously delivered aircraft) with an order for 20 787-10s. United expects delivery of its first 787-10X aircraft in 2018. United ordered 10 incremental 787-10 aircraft and will convert 10 existing 787s on order to 787-10s. The new order will enable the airline to further modernise its international widebody fleet by replacing older, less efficient aircraft. United is currently the only US airline to operate the 787. United had previous orders for an additional 49 Dreamliners consisting of both the -8 and -9 variants. In Jul-2012, United announced a narrowbody order for 100 Boeing 737 MAX 9 aircraft and 50 Boeing 737-900ER aircraft. In addition, United has an order for 25 A350 aircraft. The airline is also modernising its United Express fleet by adding 70 76-seat Embraer aircraft that will be operated by United Express regional partners. [more - original PR]
United Airlines becomes North American launch customer for the 787-10
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Air Canada Part 1: low cost rouge is a pillar of growth; but further expansion might be constrained
During the past year Air Canada has found itself defending its double-digit capacity growth, stressing that 90% of its capacity in 2015, 2016 and 2017 is being deployed to its international network – an entity the company believes is far from reaching maturity. Recently the airline has outlined plans to introduce a raft of new long haul flights to Europe and Asia operated by Air Canada mainline and its low cost arm – Air Canada rouge.
Air Canada stresses the pillars of its international expansion – Boeing 787 widebodies and the establishment of its low cost subsidiary rouge – enable the company to enter international markets it once considered unviable due to higher costs. During the summer of 2018 rouge will nearly reach its 50 aircraft cap, and Air Canada needs to start determining if there are further opportunities to grow its low cost unit. Those evaluations will partially dictate Air Canada’s overall growth levels beyond 2018.
In the short term Air Canada is not seeing any broad changes in consumer behaviour, reflected in its solid booking curves. Weaker markets in Western Canada, hit by the downturn in the oil sector, are stabilising as capacity cuts have resulted in a rational supply-demand scenario.
This is Part 1 in a two part series on Air Canada. The second instalment will focus on the airline’s costs and balance sheet management.
Hawaiian Airlines emerges as the unit revenue champion among US airlines in 1H2016
Hawaiian Airlines’ unique geography continues to benefit the company in 2016 as favourable capacity trends are one factor in its industry outperformance in unit revenue metrics. Hawaiian’s outlook for the remainder of 2016 remains positive as industry capacity on its routes to North America and long haul destinations remains relatively benign.
The airline is acknowledging slight pressure in its inter-island operations due to heightened competition with the smaller operator Island Air. Hawaiian plans to adjust its inter-island schedule later in 2016 to maximise peak flying and cut some off-peak flights.
Hawaiian is expanding service to the Tokyo market in 2016 after being awarded new slots at Haneda airport. But the expansion is not affecting Hawaiian’s overall growth targets of a 2.5% to 5.5% increase in capacity, which is significantly lower than the double-digit expansion it recorded from 2011 to 2013.