Royal Brunei Airlines

Aeroflot looks to expand its lucrative – yet challenging – sixth freedom market

The lure for an airline to grow beyond its home market by targeting sixth freedom traffic is as old as the jet age: bygone Icelandic carrier Loftleidir ruffled feathers in the 1950s by carrying far more passengers than its local population while KLM in 1957 listed on the New York Stock Exchange, partially to quell nationalist fears it was taking too many passengers from the US.

Efforts to focus on sixth freedom traffic come and go: KLM has remained (upwards of 80% of its passengers transit its Schiphol hub) while Emirates has sprung up (now as the third largest carrier in the world). And, as Chinese and other north Asian airlines expand their roles, now carriers like Aeroflot are making new pushes into sixth freedom traffic.

Aeroflot's Moscow hub has strikingly similar geography to Helsinki, where Finnair is betting its future on sixth freedom traffic, while claiming a network that can rival those in Europe and the Middle East.

Royal Brunei plans long-haul product upgrades while refocusing short-haul to compete against LCCs

Royal Brunei Airlines (RBA) aims to significantly improve its long-haul product next year following the introduction of its Boeing 787 fleet as part of a new strategy to focus on brand in the long-haul market and price in the short-haul market, where it faces increasing competition from LCCs. The long-haul product enhancements will include 18 lie-flat business class seats on the 787s, which will be placed by early 2014 on the carrier’s London, Dubai and Melbourne routes as well as potentially to Hong Kong and Shanghai.

RBA is now slated to receive its first of five 787s in Aug-2013, as CAPA first reported in Nov-2011. The carrier will be the first in Southeast Asia to receive the 787. RBA deputy chairman Dermot Mannion said on the sidelines of the CAPA Airlines in Transition CEO Summit last week that the carrier plans to place into service three 787s by the end of 2013 with the final two being delivered in 1Q2014.

Royal Brunei settles in for medium term with expanded Australian services

Royal Brunei Airlines (RBA) this month is increasing capacity to Melbourne and adjusting the schedule there in a bid to generate scale and improved financial performance. The government-owned carrier is settling into its restructured route network that in mid-2011 saw many loss-making long-haul routes eliminated, which RBA deputy chairman Dermot Mannion says is helping create financial stability as costs decrease and cash flow improves. The carrier will continue to monitor its regional network but is unlikely to open new destinations, preferring instead to add capacity when opportunities arise.

The restructure left RBA with significant excess capacity on its widebody Boeing 777 fleet but RBA later this year will return two of its six leased 777s and retain the rest until 787s arrive in late 2013. RBA expects the aircraft, combined with a new interior and redevelopments at Bandar Seri Begawan Brunei International Airport, will give the carrier a boost after high fuel prices and increased competition made it undertake the restructure and staff retrenchment.

Royal Brunei Airlines adjusts fleet to reflect new strategy and restructured network

Royal Brunei Airlines (RBA) is preparing to expand capacity within Asia following the acquisition of an additional A320 while reducing the size of its widebody fleet to match its new and smaller long-haul network. The adjustments come as RBA implemented, at the beginning of last week, its restructuring plan, focussing on local traffic and long-haul to short-haul connections rather than continuing in the intensely competitive 'Kangaroo route'. RBA sees five A320s and five B787s, which are expected to replace its six B777-200ERs by the end of 2014, as an ideal fleet for executing its new strategy over the medium to long term. 

Royal Brunei Airlines shrinking to remain competitive

Royal Brunei Airlines (RBA) stated it is “going back to its roots" with a plan to focus on regional hub operations as it seeks to stay competitive in a “challenging” environment. The carrier noted that the financial performance of the airline, particularly in its long-haul operations, has "deteriorated to a point where the existing network is simply not sustainable in its current form". "Unfortunately, the only choice for RBA is to face up to the fact that change is unavoidable to ensure the very survival of the airline," the carrier's statement said.