Airbus has reportedly beaten its 2009 deliveries target, delivering 498 aircraft, and is planning to deliver a similar number of aircraft in 2010 (Emirates Business 24/7, 05-Jan-2010). However, the company missed its A380 delivery target of 13 aircraft for the year, delivering ten. The manufacturer plans to formally release its deliveries figures on 12-Jan-2010. COO, John Leahy, also stated the company expects a “minimum amount of cancellations” in 2010.
Airbus reportedly beats 2009 deliveries target
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Iran Air drops the A380 from its Airbus order; a logical decision as the A380 ages, enters mid-life
Iranian aviation is being revitalised with the long-term prospects of re-establishing a global hub in Tehran. The first of many steps is re-fleeting and growth at the flag operator Iran Air, which has confirmed orders for 180 aircraft from Airbus and Boeing. The 80-aircraft Boeing order includes 737 MAXs, 777-300ERs and 777-9s, while the 100-aircraft Airbus order includes A320s, A321s, A330s and A350s.
Iran Air has dropped preliminary plans to take 12 A380s. Although this is being marked as the latest blow to the A380 order, Iran Air taking A380s was always a distant prospect. Tehran is a small hub prospect in the short term and, irrespective of whether Iran Air could find sustainable markets for the type, by the time Iran Air planned to receive its first A380 the type would be well into its mid-life, with dwindling spare parts and support.
A380 phase-out is beginning. Of the A380's early operators: Singapore Airlines is not renewing the leases on its initial A380s, Emirates will have new A380s replace older A380s it expects to part-out, and Qantas is studying stretched A350 types and the 777X to replace its A380s. That said, there may be renaissance concepts for the aircraft, such as Malaysia Airlines' charter plans.
Alaska Air Group ups merger synergy targets as the margins for 2017 compress
Alaska Air Group has revised projected synergies from its merger with Virgin America upwards in both costs and revenue as it leverages the power of a larger network with a broader footprint in California, and uses the combined fleet to maximise profitability on transcontinental routes by placing higher gauge aircraft in those markets.
The existing Airbus narrowbodies operated by Virgin America will remain in the combined airline’s fleet for the foreseeable future. As a result, those aircraft are being reconfigured to offer standard interiors, including Alaska’s first class seat.
Similarly to Virgin America prior to the merger, Alaska has decided that a lie flat seat offering does not fit into its strategy in the contested US transcontinental market. In fact, choosing not to develop a lie flat product could put Alaska in a more favourable position when an (inevitable) economic down cycle occurs.
Despite the more favourable synergy estimates, Alaska will face some margin pressure due to Virgin America’s overall lower margin business. However, even though its margins are likely to drop in 2017, Alaska is stressing that its pretax margin performance will best the industry average.