Japan Airlines (JAL) chairman Masaur Onishi said (03-Jun-2013) on the sidelines of a oneworld briefing at the IATA annual general meeting in Cape Town that the carrier is now starting the process of evaluating options for renewing its Boeing 777 fleet. Mr Onishi says the carrier plans to initially look at replacing its fleet of over 40 777s, which include aircraft in its domestic and international fleets, with “one package” of about 45 aircraft for delivery starting in 2019 at the earliest. But he says JAL could end up splitting the package and separately acquire replacement aircraft for its 777 domestic and 777 international fleets. Mr Onishi says JAL is in no hurry to make a decision and if it does not get a good deal in response to its current request for proposals it could postpone a decision on its 777 fleet. Accord to the CAPA Fleet Datbase, JAL currently operates 26 777-200/200ERs and 20 777-300/300ERs.
IATA AGM 2013: JAL starts to review 777 replacement options
You may also be interested in the following articles...
Korea-Japan: LCCs are poised to overtake full service airlines for first time in Northeast Asia
For the first time in Northeast Asian aviation, low cost airlines are poised to overtake full service airlines in a significant way. The market concerned is that between Japan and Korea, where LCCs are rapidly growing, while full service airlines are decreasing capacity. Overall market size and visitor figures are at record highs. This refutes any legacy airline thinking that LCCs "steal" market share; LCCs are growing the market and becoming the future – as they already are in other parts in the world.
LCCs accounted for 1% of available seats between Japan and Korea in 2009, reached 37% in 2016, and so far in 2017 will account for 49% of the market. Limited airport data indicates that LCCs, operating at higher load factors, already transport more passengers than full service airlines, and by the end of 2017 LCCs should easily account for the majority of capacity.
LCCs already fly more airport pairs than their full service counterparts. The LCC development between Japan and Korea illustrates underlying LCC opportunity in Northeast Asia but also reflects on the importance of liberalisation, and for full service airlines to have efficient cost bases.
Finnair accelerates capacity growth, led by long haul; seeks cost efficiency through fleet & labour
In 2016 Finnair accelerated its rate of capacity growth after a modest return to expansion in 2015, following cuts in 2014. It also experienced a fall in unit revenue (as did most European airlines), most notably in the regions of highest capacity growth, i.e. the long haul markets North America and Asia.
Asia is Finnair's most important long haul market (Japan and China are its two biggest markets by ASKs) and its ranking by seats on routes between European and NE/SE Asia is disproportionate. It has ambitious growth plans in the region and will increase frequencies to Tokyo and Hong Kong this summer. Its long haul network, which will also extend to San Francisco this summer and Goa next winter, is largely founded on connecting traffic via its Helsinki hub.
Finnair's return to capacity growth has coincided with a return to profit, but lower fuel prices were the main driver of its bottom line improvement. Its profit margins remain slim and, beyond the vagaries of fuel price benefits, Finnair aims for more sustainable unit cost cuts. Fleet strategy and labour productivity form a two pronged attack on its cost base.