Qantas Group announced (19-Jun-2019) an update to its existing order with Airbus for A320neo Family aircraft, to secure delivery positions on the A321XLR from FY2024 onwards. The carrier will order up to 36 A321XLRs, converting 26 existing orders for A321neos and adding another 10 orders. This takes the group's orders for A320neo Family aircraft from 99 to 109. Qantas stated the order includes significant flexibility for the Qantas Group to make adjustments to delivery schedules depending on market conditions. The announcement was made at the 2019 Paris Air Show. Qantas Group CEO Alan Joyce said the aircraft will be capable of operating routes such as "Cairns-Tokyo or Melbourne-Singapore, which existing narrowbodies can't" and this "changes the economics of lots of potential routes into Asia to make them not just physically possible but financially attractive. A decision on "which parts of the Group will use these aircraft" will be made closer to deliveries, "but there is plenty of potential across Qantas and Jetstar" said Mr Joyce. As announced in early 2018, the first deliveries from the Qantas Group's A320 family order will begin with 18 A321LR aircraft for Jetstar, arriving between mid-2020 and mid-2022. These will operate a mix of domestic and international routes. [more - original PR]
Delta Air Lines has made interesting network moves during the last few years, seizing on opportunities from mid-sized airports. Raleigh Durham has become a focus city for the airline and is one of several non-hub markets featuring nonstop flights operated by Delta to Paris.
In 2018 Delta launched flights from Indianapolis to Paris, joining flights to its French hub from US non-hub airports in Raleigh, Cincinnati and Pittsburgh. After a decade of service, Delta has opted not to resume seasonal service from Pittsburgh to Paris, citing overcapacity in that particular trans Atlantic market.
Officials from Indianapolis appear bullish about Delta’s first year of service to Paris, and unlike its situation in Pittsburgh, Delta has a stronger position in Indianapolis, Raleigh and Cincinnati that should help to sustain long haul flights for now.
The three large US global network airlines are in the early innings of deploying their respective premium economy products on long haul routes, but there is no shortage of optimism at American, Delta and United about the revenue-generating potential of a dedicated product between first/business class and economy.
American is further along in the number of premium economy seats it has on offer after recently completing retrofits of nearly 124 widebodies with a dedicated premium economy section.
United and Delta are at varying stages of a premium economy deployment on long haul international routes, but all three airlines cite encouraging statistics about pricing power and load factors for their latest segmented product.
The roll-out of premium economy by those airlines is the latest development in their product segmentation strategies that are designed to drive upsales and to compete more effectively with lower cost competitors as those competitors enter and exit the market.
Premium economy is a way of ensuring that they cater to all passenger segments that are looking for value in long haul markets.
The company Brand Finance has released its inaugural report on the most valuable and strongest airport ‘brands’ with a list of the World’s 'Top 25'.
There are several definitions of the word 'brand', including: ‘a particular identity or image regarded as an asset.’ Of course, just about everything is a brand now, from washing powders to pop groups to sporting celebrities, and image is everything. Some people and entities are better known for their image than for what they actually do.
In the report the big city airports dominate at the expense of smaller ones with a strong case and, among the interesting assessments, the exclusion of Dubai and other Middle East airports is a mystery.
The criteria used to establish this list are comprehensive but, even so, may need benefit from a closer review.
Delta Air Lines is arguably one of the best-run airlines in North America, regularly distinguishing itself from its peers through product innovation and consistent operational excellence.
Another distinctive feature in Delta’s business that makes it unique with respect to its larger airline peers is the low level of union representation among its labour groups. Its pilots are the only unionised employee group. For years, unions have been attempting to organise Delta’s other large work groups, and the International Association of Machinists (IAM) is working to represent Delta’s flight attendants and ramp employees.
It is not surprising that Delta is taking action aggressively to head off the IAM’s efforts to unionise those employees groups, but the airline’s anti-union campaign has recently stumbled and now Delta is battling a wave of criticism on social media and drawing ire from presidential contenders.
The backlash is also a lesson in the speed with which social media can tarnish a corporate image, and now Delta is trying to make amends. But it is tough to determine what, if any, permanent damage Delta’s brand could endure.
Latin America’s second largest airline – Avianca Holdings – is facing one of the most tumultuous times in its 100-year history.
The airline is navigating financial struggles and a CEO and board shake-up as its majority shareholder was unceremoniously removed as chairman. And although it has no formal ties to Avianca Brazil, the Brazilian airline’s misfortune has forced Avianca to stress that their operations are entirely separate.
Now Avianca is in triage mode, but it does have the support from its prospective JV partner, United, which has a vested interest in ensuring that Avianca survives and thrives.
Arguably, United’s Latin American strategy rests on Avianca’s rebound.
Sabre: From Airlines To Retailers – Changing The Thought Process
Sabre VP travel solutions Middle East and Africa Dino Gelmetti believes achieving innovation comes down to a company’s willingness to change and lessons in any future retail like strategy will mainly come from outside the aviation industry.
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India's Directorate General Civil Aviation (DGCA) reported (18-Jun-2019) the following domestic traffic highlights for May-2019:
- Passengers: 12.2 million, +3.0% year-on-year;
- Passenger load factor:
- SpiceJet: 93.9%;
- GoAir: 93.3%;
- IndiGo: 90.9%;
- AirAsia India: 87.8%;
- Vistara: 85.6%;
- Air India: 85.0%;
- TruJet: 75.9%;
- Star Air India: 61.0%. [more - original PR]
Collins Aerospace announced (18-Jun-2019) it has recently been awarded more than USD1.5 billion in tailored agreements for components spanning its 'Power & Controls' and 'Aerostructures' business units. The orders are across multiple commercial platforms with global commercial customers and include:
- Collins Aerospace's first MRO agreement with Ethiopian Airlines. The agreement, valued at approximately USD500 million over a 25 year period with Collins Aerospace's Power & Controls business, will enable the airline to service components such as heat exchangers, air management systems and fuel metering units for its fleet of 60 Q400 aircraft;
- Collins Aerospace's Aerostructures business signed new long-term 'FlightSense Nacelle' agreements on Boeing 787 and A320 aircraft platforms, amounting to over USD900 million including options with multiple customers spanning over a 25 year period;
- Two Asia Pacific airlines, including Japan Airlines, signed FlightSense agreements with Collins Aerospace. Japan Airlines signed a multi-fleet 'FlightSense Onsite Support' agreement allowing Collins Aerospace to manage its MRO supply chain, providing the airline with onsite inventory, competitive rates for parts and improved shop efficiency. Additionally, an undisclosed airline in the region has signed a 'FlightSense Predictable' agreement in its effort to improve reliability and reduce downtime with advanced exchanges during critical repairs to its 777 fleet. [more - original PR]
Eviation Aircraft unveils elements of 'Alice' electric commuter aircraft and begins pre-sales
Eviation Aircraft announced (18-Jun-2019) details of its first full scale, all electric commuter plane, known as 'Alice', at the 2019 Paris Air Show. The company has also announced it will begin pre-sales of the aircraft. Key details include:
- Design: Aircraft will seat nine passengers, and will be capable of speeds up to 240 knots and a range of up to 650 miles. Intended to operate high frequency 'middle mile' commuter routes such as Paris-Toulouse, Oslo-Trondheim and San Jose-San Diego;
- Timeline: Start of manufacturing and first flight to be conducted in 2019. Aircraft certification expected in 2022;
- Testing: AeroTEC, to lead Alice's flight tests and first flight at its Moses Lake, Washington location and serve as a partner for certification;
- Partners: Honeywell (flight-by-wire systems), Siemens (electric power units), Hartzell (propellers), magniX (electric power units) and Magnaghi Aeronautica (landing gear);
- Operating costs: Eviation Aircraft estimates cost reductions of up to 70% compared to existing, in service aircraft. [more - original PR]
De Havilland Aircraft of Canada formally awarded type certificates for entire Dash 8 line
De Havilland Aircraft of Canada Limited announced (18-Jun-2019) it formally received type certificates for the entire Dash 8 aircraft programme, including the 100, 200 and 300 series and the in-production 400. The certificates were handed over at a ceremony at the 2019 Paris Air Show. The type certificate ceremony follows the launch of De Havilland Aircraft of Canada Limited on 03-Jun-2019 with the completion of the transaction through which Longview Aviation Capital acquired the entire Dash 8 programme. De Havilland Aircraft of Canada COO Todd Young reported the Dash 8 turboprop programme "has momentum, including the introduction last [autumn] of the new 90 seat configuration of the 400 series". [more - original PR]
GKN Aerospace expands risk & workshare agreement with Pratt & Whitney for PW1500G and PW1900G
GKN Aerospace announced (18-Jun-2019) at the 2019 Paris Airshow that it has expanded its risk and revenue sharing partnership (RRSP) with Pratt & Whitney for the PW1500G and PW1900G engines. The expansion adds the fabricated fan case mount ring and the fan spacer for the engines to GKN Aerospace's workshare. This contract expands GKN Aerospace's involvement in for engines powering the Embraer E190-E2 aircraft and Airbus A220 and reinforces the company's role as a long-term supplier of engine components for Pratt & Whitney. The workshare expansion will see GKN Aerospace apply new additive manufacturing and composite technologies to the components. The fabricated fan case mount ring will be additively manufactured with a unique laser metal deposition process, minimising waste, costs and production lead time. [more - original PR]