Friday 24 February 2012

What's Happening Now? -February 2012

Asia’s largest aerospace show-Singapore Airshow 2012 has just drawn their curtains. As many industry experts had predicted, due to the European financial crisis, not many airlines are willing to commit any further orders. As the European crisis keeps worsening, it seems to me that this year won’t be a very good year for most European carriers. Star Alliance member Spanair and Oneworld member Malev Hungarian Airlines have ceased their operation. While there are 3 other airlines around Europe were forced to stop flying. Carriers across Europe like TAROM, LOT Polish Airlines, JAT Airways, TAP Portugal are now finding strategic investors as these carrier struggle to survive in the current market. Competition from low-cost carrier especially Ryanair and easyjet, high fuel cost are part of the causes. Governments across Europe had pumped in lots of money to make these carriers flying. But based on the current situation in Europe, it doesn’t allow the government to do that anymore. Instead, finding a suitable investor in order to ensure long-term survival and a brighter future. Recently, Etihad Airways of UAE just finish acquired a 40% stake at Germany’s second largest carrier-Air Berlin. Turkish Airlines and Qatar Airways are rumoured to be investors that are interested to support these ailing carriers.

During the Singapore Airshow, Lion Air of Indonesia confirmed an order of 380 planes that they announced last year with Boeing, making this the largest order in terms of aircraft ordered as well the cost of the order. The deal included a purchase of 230 aircraft and a option for a further 150 more planes. Among these 230 aircraft, 201 will be the yet-developed Boeing 737 MAX 9, 29 would be the Boeing 737-900ER. Lion Air has always been a great customer for Boeing. The airline was the launch customer for the Boeing 737-900ER and currently operated 57 of it with an order of 119 more(Excluding the new order). Currently, the airline operate a fleet of 71 aircraft with plans to operate medium and long-haul travel in 2013 to compete with likes of Scoot, JetStar and Air Asia X. Not only Lion Air place an order for aircraft. Indonesia’s national carrier Garuda Indonesia also makes an order for aircraft during the Singapore Airshow for 18 Bombardier CRJ1000 aircraft and a further option of 18 aircraft to cater for the regional growth of the airline’s 3rd and 4th hub in Makassar and Medan. Garuda Indonesia still have orders for Airbus 330-300 and Boeing 777-300ER that is going to cater for medium and long-haul destinations. Garuda currently only connects the Dutch Capital of Amsterdam in the carrier’s long-haul network. Apart from that, Indonesia AirAsia, the Indonesia subsidiary of Asia’s largest low-cost carrier AirAsia has also has a huge share of the 200 Airbus 320 that was order by AirAsia Group last year. The aviation future in Indonesia looks bright by looking at the massive order from each airline in the country. The new orders can help erase the long known image of low safety record among foreigners as several Indonesian carriers were removed from the blacklist of the European Union two years back. During the first quarter of 2011, passenger growth rose nearly 18%, with domestic passenger numbers rose about 23% from 2009 to 2010 makes Indonesia currently is the 12th largest aviation market. For me, Indonesia has a huge amount of population at around 240 million, so the large number of population are able to support the large amount of aircraft ordered by airlines. Certainly, aviation future in Indonesia looks bright in the years to come. With strict rules and government enforcement, it looks to me that the confidence in flying in Indonesia has been restored among Indonesians.

Another news that caught my eye was an order of extra 10 Boeing 787-9s aircraft from Japan Airlines, which totalled the airlines order of Boeing 787s to 45. Besides, Japan Airlines are in line to be the second operator of the aircraft in the coming months. Previously, Japan Airlines has an order of 35 Boeing 787-8s. Under the current new deal, 10 of the Boeing 787-8 will be upgraded into the larger Boeing 787-9. With 3 new low cost carrier coming into the Japanese market, Japan Airlines certainly have shifted their focus to regional, medium and long-haul route with the orders of these Boeing “Dreamliners”. Japan Airlines have recently announced plans to open new routes to Helsinki of Finland, Boston and San Diego of USA in the coming months operating by the brand new Boeing 787s. Japan Airlines rival, All Nippon Airways too has also announced that a series of cost-cutting measure and putting their focus on international expansion. Kansai-based Peach Aviation, a subsidary of All Nippon Airways will be the first low-cost carrier to take to the skies this March. This will be followed by Jetstar Japan, a joint-venture of Qantas Airways, Japan Airlines and Mitsubishi Corp in July that will operate out of Tokyo-Narita. The last will be AirAsia Japan, a joint-venture between AirAsia and All Nippon Airways which will also be based at Tokyo-Narita in August. The entrace of low cost carrier will certainly increase the competition in the country. Japan which has a large domestic market, but surprisingly has a low low-cost carrier(LCC) penetration. The only LCC in the country currently is Skymark Airlines. But the airline’s recent announcement of an all-premium seats in the airline’s upcoming 6 Airbus 380-800 raises question mark on whether the airline’s business model has been shifted from low-cost to premium market. With the entrance of these 3 new low-cost carriers, fares are expected to be slashed; competition among airlines will be much more stiffer. Overall, the Japan market have recovered pretty quick since last year’s horrific tsunami and earthquake.So it’s interesting to see what will happen in Japan aviation market in the upcoming years.

Finally, after 5 years of service, it seems to me Airbus is still struggling with their “superjumbo” A380. Recently, Qantas Airways of Australia found cracks on the aircraft wings. For me, it may look a small crack but any small technical issue is big enough to bring down a plane, so zero tolerance should be implement to find the reason of the crack. Hopefully, Airbus will solve the issue properly to restore confidence among passenger that flew the jumbo plane.

By,
The Editor
23/2/2012


sunnaero@gmail.com

Tuesday 21 February 2012

Airbus 380 Operator's Configuration


A380 seating configurations
Airline
First delivery
A380s in service
Total Seats
First
Business
Premium Economy
Economy
Singapore Airlines
 Oct-2007
16
409
12
86
311
471
12
60
399
Emirates
 Jul-2008
15
489
14
76
399
517
14
76
427
Korean Air
 Jun-2011
4
407
12
94
301
Lufthansa
 May-2009
8
526
8
98
420
 Sep-2008
10
450
14
72
32
332
Air France
 Oct-2009
6
516
9
80
38
389
538
9
80
449
China Southern
Oct-2011
-
506
8
70
428
Malaysia Airlines
 2Q2012*
-
508
8
54
420
Thai Airways
 Aug-2012*
-
507
12
60
435
Skymark Airlines
 2014*
-
394
114
280
Air Austral
 2014*
-
“around 840”
This year, two new operator of the aircraft- Malaysia Airlines and Thai Airways. They will be the 8th and 9th customer respectively. With close to 30 more expected to be delivered over the year, the in-service fleet will approach 100 by the end of 2012.

sunnaero@gmail.com

Pakistan International Airlines Orders Five Boeing 777-300ERs

Pakistan International Airlines has placed a firm order for five Boeing 777-300ERs.Boeing values the deal at nearly $1.5 billion at list prices and says the order also includes purchase rights for Pakistan International Airlines to order five additional 777-300ERs.

Based in Karachi, Pakistan International Airlines has been renewing its long-haul fleet to accommodate increased demand for air travel as well as to introduce new routes.

Pakistan International Airlines announced a firm order for five Boeing 777-300ERs on February 20, 2012, in a deal which Boeing valued at nearly $1.5 billion at list prices. The order also included purchase rights for five additional 777-300ERs
“With passenger traffic in our region accelerating, the new 777-300ER airplanes will continue to deliver the highest standards of technology and passenger comfort to our customers,” saidys Captain Nadeem Yousufzai, managing director of Pakistan International Airlines. “The spacious 777-300ER has been an integral part of our long-range fleet renewal program and its excellent operating economics, long range capability and reliability will allow us to expand into new long-haul markets.”

In 2002, Pakistan’s flag carrier became the world’s first airline to purchase all three passenger models of the Boeing 777 family and in that year was also the launch customer for the Boeing 777-200LR(longer range) jet.

Last year was the best-selling year ever for the 777 program, with Boeing’s net orderbook of 200 777s in 2012 surpassing the previous annual record of 154, set in 2005.

The Boeing 777-300ER is powered by General Electric GE90-115BLs, the world’s largest and most powerful commercial jet engines. The aircraft also features the Boeing Signature Interior, which according to Boeing offers wider seats, wider aisles, more headroom and more seating flexibility.


Source: Airlines and Destinations

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Wednesday 15 February 2012

JAL increases 787 orders by 10 to 45


Japan Airlines 787. Courtesy, Boeing


Japan Airlines (JAL) said it has placed a firm order for 10 Boeing 787-9s and converted 10 787-8s it already had on order to -9s.

The new order and conversion bring JAL's total Dreamliners on order to 45 comprising 25 -8s and 20 -9s. It also still has 20 787 options.

"The 787-9 is a slightly larger version that can fit approximately 50 more seats than the 787-8 configured for international routes," JAL said in a statement. "Equally efficient as the 787-8 but with more seat capacity, the unit cost per seat on the 787-9 is estimated to be lower."

JAL plans to put its first 787 into service in April.

Source: ATW

Lion Air firms up Boeing’s largest order ever; launch customer for 737 MAX 9


Computer-generated drawing of a 737 MAX 9 in Lion Air livery. Courtesy, Boeing


Indonesian carrier Lion Air (JT) has firmed up its agreement with Boeing announced in November to buy 201 Boeing 737 MAXs and 29 737-900ERs in a $22.4 billion contract that is Boeing’s largest ever. JT also acquired purchase rights for a further 150 737s.

The initial commitment was announced in Bali, Indonesia, with US President Barack Obama present.

Boeing put the list price of the JT firm order for 290 aircraft at $22.4 billion. “This deal is the largest commercial airplane order ever in Boeing's history by both dollar value and total number of airplanes,” Boeing Commercial Airplanes VP Asia-Pacific and India Dinesh Keskar said at Tuesday’s contract signing at the Singapore Airshow.

The contract for the CFM International LEAP-1B engine order that will power the 201 737 MAXs is valued at approximately $4.8 billion at list prices, and the CFM56-7B engine order to power the 29 73-900ERs is valued at $580 million at list prices, CFM said.

JT founder and president director Rusdi Kirana told ATW the contract offers the flexibility to decide closer to the delivery date how much of each variant JT will take. He also said financing of the new aircraft will be “no problem” and will be done partly through the US Export-Import Bank (Ex-Im Bank) and other bank loans. The company intends to outright buy up to 85%-90% of the aircraft, he said.

He said he could not detail when the purchase rights would be converted into orders, noting that “much depends if the Asian open skies materializes. If it does, as we hope for by 2015, then a very big market opens up for us.”

Deliveries of the new order will start in 2017 and continue through 2026, by then it will have taken delivery of 408 new 737-900ERs/MAXs. The new firm order adds to existing orders for 178 737-900ERs; these deliveries run through 2016. JT was the launch customer for the 737-900ER and received world's first 737-900ER in April 2007.

The Jakarta-based airline carried 27 million passengers last year and holds a domestic market share of 51, Rusdi Kirana said. He aims to increase this to 60%. The airline began operations in June 2000.

To date, the 737 MAX has orders and commitments for “more than 1,000 airplanes” from 15 customers, Boeing said.

Source: ATW

Garuda Indonesia commits to up to 36 CRJ1000 NextGens


Garuda Indonesia CRJ1000. Courtesy, Bombardier


Bombardier Aerospace and Garuda Indonesia (GA) said Wednesday the carrier will acquire up to 36 Bombardier CRJ1000 NextGens to support its domestic and regional operations from its Makassar, Medan and Balikpapan hubs.

The deal includes a firm order for 18 aircraft and options for a further 18, GA president and CEO Emirsyah Satar said at a press conference at the Singapore Airshow. Of the 18 firm orders, six will be purchased directly by GA and 12 will be acquired by the Scandinavian lessor Nordic Aviation Capital, he said.

The firm order for six CRJ1000 NextGen regional jets and 18 options was announced by Bombardier as an order by an unidentified customer. The order is valued at approximately $297 million and could increase to approximately $1.32 billion if all 18 options are exercised, Bombardier said.

“The Bombardier CRJ1000 NextGen airliner’s superior economics, outstanding fuel economy and excellent passenger comfort ideally meet our requirement for 100-seat aircraft to service domestic and regional markets from five regional hubs,” said Satar. He told ATW the aircraft will be configured in a two-class layout as they will be an integral part of GA’s full-service approach and network.

The first CRJ1000 is expected to be delivered in October and five aircraft should join the GA fleet this year. A further 12 will be delivered in 2013.

Bombardier Commercial Aircraft president Mike Arcamone said the “CRJ1000 NextGen regional jet continues to perform beyond expectations with its current operators, and we are thrilled to welcome Garuda Indonesia as the aircraft’s launch customer in the Asia/Pacific region.”

Including the order from GA, more than 300 CSeries, CRJ and Q-Series aircraft are on order or are operating in the Asia/Pacific region, Bombardier said. It forecasts the Asia/Pacific region (including China) will take delivery of approximately 4,000 aircraft in the 20- to 149-seat category over the next 20 years.

Bombardier said it has recorded firm orders for 1,715 CRJ Series aircraft.

Source: ATW

Saturday 4 February 2012

New blow for Kingfisher as Oneworld move put on hold

Struggling Indian carrier Kingfisher Airlines' planned entry the Oneworld alliance has been put on hold to give it time to work on its troubled financial position.

The Indian carrier's implementation into Oneworld had been planned for 10 February, but the alliance and airline have now agreed to put the move into Oneworld on hold.

Oneworld chief executive Bruce Ashby said: "These are turbulent times for the airline industry in India and many other parts of the world. We have been working closely with Kingfisher Airlines over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into Oneworld.

"Will work with Kingfisher Airlines with the aim of setting a new joining date once it is through this current period of turbulence," he added.

Kingfisher Airlines chairman Vijay Mallya said: "In light of the many priorities centred around Kingfisher Airlines' recapitalisation efforts, we felt it prudent to defer our entry into the alliance for a little while. This will allow us the opportunity to focus on the issues at hand and we look forward to being part of the Oneworld alliance very shortly."

Kingfisher was to be Oneworld's first Indian member, but speculation over its entry into the alliance has increased in recent months as its financial concerns have deepened.

The announcement marks a double blow for Oneworld today, coming on the same day as its Hungarian member airline Malev was forced to cease flights. It comes just a day after Oneworld confirmed Air Berlin would formally join the alliance on 20 March.

It means a longer wait for the first Indian carrier to join a global alliance. Six months after Air India's long-planned entry into Star Alliance was suspended after it failing to meet the agreed minimum membership conditions.

Source: Flightglobal

Cash-strapped Malev ceases operations

Hungarian airline Malev has suspended operations and grounded its fleet in the face of accelerating financial collapse.

A statement on the Oneworld alliance member's website said that it taken the decision to "cease operations" from 06.00 local on 3 February "after 66 years of almost continuous operation".

Lorant Limburger, chief executive, said it had "worked hard" to avoid the airline's closure, however, recent revelations about its financial health had worsened the situation, with suppliers demanding up-front payment for services.

"This cash outflow accelerated to such an extent that the airline is now in an untenable situation," he said.

The Hungarian government is unable to offer further support thanks to EC rules on state aid. The commission on 9 January ruled that Malev would have to pay back the nearly Ft100 billion ($406 million) it received from Budapest between 2007 and 2010.

"Against this background, the board decided to order [Malev] to end its proper functioning," said Limburger.

Malev warned on 31 January that it was rapidly running out of money and called for urgent talks with politicians to secure its short-term future.

Source: Flightglobal

Thursday 2 February 2012

Air Berlin to join Oneworld on 20 March

Air Berlin will become a full member of Oneworld on 20 March. In addition, Air Berlin group member Niki will join Oneworld as an affiliate member on the same date.

British Airways sponsored Air Berlin's entry into the alliance, along with the Oneworld central team. Air Berlin received approval to join the alliance after successfully completing a thorough review of its readiness, conducted by British Airways.

Air Berlin's membership will add almost 70 destinations to the alliance's map, extending Oneworld's global coverage to around 840 destinations in 150 countries, said the airline.

Since accepting an invitation to join the alliance in July 2010, Air Berlin has implemented codesharing agreements with seven established Oneworld partners - American Airlines, British Airways, Finnair, Iberia, Malev Hungarian Airlines, S7 and Royal Jordanian.

It will become part of the alliance three months ahead of its move into the new Brandenburg airport at its Berlin home, which will open on 3 June with an eventual capacity for 27 million passengers a year, said the airline.

Air Berlin and its alliance partners will be co-located at Europe's newest hub, sharing lounges and many facilities.

Source: Flightglobal