Book Flights
 

IATA sees no end to tougher aviation environment

Boeing freight

The airline industry recorded its eighth consecutive month of below-average global passenger traffic growth in September and the International Air transport Association (IATA) says there is no sign of the trend reversing in the near term.

Freight volumes also remained weak to register its 11th  consecutive month of year-on-year declines, the longest such period since the global financial crisis in 2008.

IATA pointed to declining world trade activity and tariff wars, rising political and geopolitical tensions and a slowing global economy as the primary problems.

READ: Document glitch doesn’t deter Boeing MAX hopes

“These are challenging days for the global air transport industry,’’ IATA director general Alexandre de Juniac said.

“Pressure is coming from many directions.

“In a matter of weeks, four airlines in Europe went bust. Trade tensions are high and world trade is declining.

“The IMF recently revised down its GDP growth forecasts for 2019 to 3.0 percent.  If correct, this would be the weakest outcome since 2009, when the world was still struggling with the Global Financial Crisis.”

September global passenger traffic still grew by 3.8 percent compared to a year ago.

Tighter control on capacity growth saw planes continue to fill and establish a new September global load factor record of 81.9 percent.

International passenger demand in September rose by 3 per cent as  the load factor climbed to 81.6 percent.

North American carriers led the way a 4.3 percent growth in international passenger demand supported by solid consumer demand and job creation. The load factor jumped 2.2 points to 83 percent.

Asia-Pacific demand increased to 3.6 percent from 3.3 percent in August amid US trade tensions and political unrest in Hong Kong. The load factor slid 1.1 percentage points to 78.2 percent.

Europe, on the other hand, posted its weakest performance for this year with a 2.9 percent rise but the region the highest international load factor of any region at 86.9 percent.

“In addition to slowing economic activity and faltering business confidence in many of the key European economies, the result was also affected by the demise of a number of airlines, along with pilot strikes,’’ IATA said about the European results.

September international traffic growth slowed compared to August in the Middle East (falling to 1.8 percent), Latin America (falling to 1.2 percent) and Africa (falling to 0.9 percent).

Growth on the domestic front was more robust in September at 5.3 percent compared to the previous year while the load factor grew 0.5 percentage points to 82.3 percent.

US domestic traffic surged 6 percent in September. IATA noted this was somewhat exaggerated by a softer demand environment in 2018 but still described the demand environment as “robust”.

Japan recorded a 10.1 percent growth but this was distorted by the weak outcomes in September 2018 due to Typhoon Jebi.

September freight volumes remained weak with demand falling 4.5 percent and capacity outstripping supply for the 17th consecutive month.

Airlines in the Asia-Pacific, Europe, North American and the Middle east all suffered sharp declines in year-on-year freight volumes growth.

“The US-China trade war continues to take its toll on the air cargo industry,” de Juniac said.

“October’s pause on tariff hikes between Washington and Beijing is good news.

“But trillions of dollars of trade is already affected, which helped fuel September’s 4.5 percent year-on-year fall in demand.  And we can expect the tough business environment for air cargo to continue.”

Document glitch doesn’t deter Boeing MAX hopes

southwest
Southwest Airlines 737 MAX aircraft at Victorville, California. Image: KCAL9.

Boeing is sticking with its assumption the Boeing 787 MAX will return to service to in the fourth quarter of this year despite a request from regulators that it resubmit documentation relating to the jet’s software.

The manufacturer confirmed it had been asked to resubmit some technical documentation relating to changes it is making to the MAX flight control software aimed at preventing a repeat of two fatal accidents.

The airliner has been grounded since March after software known as MCAS was implicated in the tragedies involving Indonesia’s Lion Air and Ethiopian Airways.

The changes were among issues flagged during a weekend meeting between US Federal Aviation Administration and European Union Aviation Safety Agency officials, according to Reuters.

READ: Ryanair expects further delay in MAX deliveries to cut growth

A Boeing spokesman told AirlineRatings that the company had provided technical documentation to the regulators as part of the software validation process.

“The documentation was complete, and it was provided in a format consistent with past submissions,’’ he said.

“Regulators have requested that the information be conveyed in a different form, and the documentation is being revised accordingly.

“While this happens, we continue to work with the FAA and global regulators on certification of the software for the safe return of the MAX to service.”

There has been much speculation about when the MAX will get back in the air and US carriers have taken it out of their schedules until early next year.

The European regulator, which is also conducting an assessment of the changes to the software and training has also indicated it doesn’t expect to make a decision before then.

The Boeing spokesman said the current assumption involved a return to service in the fourth quarter of 2019.

“This assumption reflects our best estimate at this time, but actual timing of return to service could differ from this estimate,’’ he said.

“We continue to work with civil aviation authorities on the 737 MAX’s safe return to service, and these authorities will determine the timing of return to service.”

 

 

Strike to see Lufthansa cancel 1300 flights

lufthansa
Photo: Lufthansa

About 180,000 Lufthansa passengers are due to be affected by 1300 flight cancellations on Thursday and Friday due to industrial action by the Independent Flight Attendants Organization.

The German carrier said the two-day strike would see it operate about 2300 of 3000 planned flights on Thursday and 2400 on Friday.

The flight attendants are striking over pay and conditions. They had previously planned industrial action in October but called it off at the last minute.

READ: Lufthansa expands basic economy on intercontinental routes

Their renewed action comes as Germany gears up to celebrate the 30th anniversary of the Berlin Wall on Saturday.

The airline said passengers should check the status of their flights on www.lufthansa.com by entering their flight number before starting their journey. Those who had provided contact details would also receive SMS or emails.

“Lufthansa regrets the inconvenience for the passengers,’’ it said.

Lufthansa Group airlines Eurowings, Germanwings, SunExpress, Lufthansa Cityline, SWISS, Edelweiss, Austrian Airlines, Air Dolomiti and Brussels Airlines will not be affected by the two-day strike.

The company said it was examining using larger aircraft on some routes to offer passengers affected by the strike alternative travel options.

It is waiving rebooking fees for passengers on all flights via Frankfurt and Munich over the two days and allowing passengers to exchange their tickets for another Lufthansa flight over the next 10 days.

“Passengers can use the Deutsche Bahn in exchange for flights on domestic routes, regardless of whether or not their flight has been canceled,’’ it said.

“Customers can convert their ticket into a Deutsche Bahn ticket under “My bookings” at www.lufthansa.com. Therefore, it is not necessary that passengers present themselves at the airport.

“Seat reservation is recommended.”

Passengers are also entitled under European rules to take flights on competitor airlines with available seats and may be eligible for meals and accommodation.

Airbus expects first A350 to be completed in China in 2021

Airbus China
Photo: Steve Creedy

Airbus expects the first A350 finished in China to roll off the final assembly line in 2021 as part of “a deepening and broadening” of aviation industry cooperation.

A  Memorandum of Understanding was signed in  Beijing this week by He Lifeng, the chairman of the National Development and Reform Commission of China and Airbus chief executive Guillaume Faury that would see both sides agreeing “ to take practical and effective measures for new initiatives regarding both Airbus single-aisle and widebody aircraft”.

The signing, in the presence of Chinese President Xi Jinping and visiting French President Emmanuel Macron, was in marked contrast to the tense relationship between China and the US.

Airbus is the process of boosting its A320 family production rate of 63 aircraft per month in 2021 and said its Tianjin A320 final assembly line (FAL Asia) remained on track to ramp up its production to six aircraft per month by the end of 2019.

READ: Air France CEO slams obsolete, problem-prone A380

This is 50 percent more than the facility’s original design expectations

“A350 XWB capabilities will be extended into the Airbus Tianjin wide-body Completion and Delivery Centre (C&DC) from the second half of 2020,’’ it said.

“The C&DC is scheduled to deliver its first A350 aircraft by 2021 from Tianjin.”

While China is no doubt happy to flaunt its relationships with Europe in the current US trade war, Tianjin is no Johnny-come-lately.

The A320 family final assembly line has been operating since 2008 and has delivered 450 aircraft to Chinese and Asian customers.

The Tianjin CD&C, the first Airbus widebody center outside Europe, was inaugurated in 2017.

It has concentrated on A330 completion activities such as cabin installation, aircraft painting and production flight tests, as well as customer acceptance and aircraft delivery.

“We attach great importance to our long-term strategic partnership with China and its aviation industry,” Faury said in the announcement. “Airbus is committed to serving this growth sector with the diverse portfolio it has to offer and we are committed to working with our Chinese partners to shape the future of the industry.”

As Airbus points out, China’s domestic market is set to become the world’s biggest and international traffic to and from the populous nation has nearly doubled over the last 10 years.

The Airbus Global Market Forecast predicts China will need about 7,560 new aircraft over the next 20 years.

Singapore Airlines tips stronger forward bookings

Singapore Airlines
Photo: Singapore Airlines.

Singapore Airlines is expecting passenger bookings to be stronger in the coming months compared to the same time last year and says yields will be supported by premium cabin traffic.

However, it warns that headwinds persist in terms of intensifying competition in key operating markets and the uncertain global economic outlook.

The somewhat optimistic outlook comes as the Singapore Airlines Group (SIA) saw its first-half net profit increase by 5.1 percent to $S206 million ($US152m)  in the first half of the financial year.

Group revenue rose 5.3 percent to $8.32 billion while higher fuel costs pushed up expenditure by 5.8 percent to $S7.91 billion.

READ: Virgin cuts capacity in sweeping network review

An 8.2 percent rise in passenger flown revenue and 7.6 percent growth in traffic helped the overall result as well as an operating profit for the parent airline company — mainline Singapore Airlines — that rose 11.2 percent to $S465 million.

However, SilkAir continued to be adversely affected by the global grounding of the Boeing 737 MAX 8 aircraft and recorded an operating loss of $S19m, up from $S3m in the first half 2018-19.

Low-cost offshoot Scoot saw an increase in revenue but its operating loss widened to $S77m from $S10m a year ago on lower yields, declining cargo revenue and other revenue falls.

It was a brighter story at SIA Engineering, which posted a 76 percent increase in operating profit to S37m.

SIA warned in its outllok that fuel prices were expected to remain volatile as a result of geopolitical and economic risks but said 75 percent of fuel requirements were hedged.

The airline is also entering the final lap of a three-year transformation program and said it ” remains committed to enhancing customer experience, improving operational efficiency and boosting revenue by strengthening digital capabilities”.

“The recent expansion of the KrisConnect program is one significant milestone,” it said.

“Utilising technology enablers such as NDC (New Distribution Capability), and APIs (Application Program Interface), KrisConnect facilitates integration and exchange of content between the Group and its partners, enabling customers to access personalized offerings across more distribution channels in addition to traditional owned channels.

“KrisShop, the airline’s flagship travel retailer, has been restructured to become a premium omnichannel e-commerce retailer.

“It will continue to expand its range of products and services through its themed concept stores and official brand stores on the new website.”

 

 

 

Virgin cuts capacity in sweeping network review

Virgin Australia

Virgin Australia is suspending its Melbourne-Hong Kong service and axing routes to Christchurch and Perth as part of a sweeping review of its network and fleet.

Australia’s second-biggest airline plans to reduce domestic capacity by at least two percent in the second half of the 2020 financial year compared to a year ago, a move that will put upward pressure on fares.

The reduction includes retiring three Fokker F100 jets by March, 2020, and reducing Tigerair Australia’s fleet by two aircraft by the middle of next year.

READ: Jetstar unveils new A321LR cabin

Among the Virgin mainline routes to go: Canberra-Perth from December 6, Gold Coast-Perth from January 19 and Sydney-Christchurch from April 29.

They will be joined by Tigerair routes between Brisbane and Darwin (from February 3) as well as Proserpine-Sydney (from February 3) and Adelaide-Brisbane (March 29).

Flying on the Melbourne-Hong Kong route will stop from February 11 but the airline will continue to serve the troubled city with a daily service from Sydney and connect with partners Virgin Atlantic and Hong Kong Airlines.

The Airbus A330 currently operating the Melbourne-Hong Kong route will be redeployed on the carrier’s new Brisbane Tokyo-Haneda flights starting March 29.

The airline also plans to re-enter the Melbourne-Denpasar route from March 29. An application to the International Air Services Commissions suggest it is planning five services a week using a Boeing 737-800.

Virgin Australia Group chief executive Paul Scurrah said the changes were about disciplined capacity management and putting the right product on the right route.

He noted there were many instances where the group has Tigerair and Virgin services on the same route at the same time.

He said it was looking to focus Virgin on routes that have a business and leisure orientation and Tigerair on key holiday destinations.

“We maintain a strong network of destinations and it’s important that our schedule continues to reflect demand from our business and leisure customers,’’ he said.

“Some of today’s changes respond to shifting demand on some routes, and others are about refocussing Virgin Australia and Tigerair Australia on the destinations we feel they are best suited.”

Scurrah said demand on the Hong Kong route had “declined in line with the political landscape” and management believed it was now best served by a single service from Sydney.

He predicted there would be strong demand on the new Tokyo route.

He told the company’s annual meeting that the airline was seeing a continued softness in the domestic market, which is Virgin’s major focus, compared to a robust first half last year.

“However, we are continuing to manage capacity very tightly,” he said. “We are ensuring we are meeting market demand with the right capacity.

“We’ll continue to watch that with laser focus to ensure we keep the cost down during a challenging period.”

Schedule changes include a reduction in Auckland-Sydney flying from 19 return services a week to 14 but mainline aircraft will replace Tigerair’s Adelaide-Brisbane flights with five services a week.

On regional routes, the group will cut ATR turboprop aircraft services between Sydney and NSW regional center Tamworth from double daily to six weekly services but plans to add four services per week to its Sydney-Port Macquarie service.

The announcement said Tigerair would increase its focus on the domestic leisure market retaining “a competitive proposition” in the Sydney-Melbourne-Brisbane triangle.

“Tigerair Australia will also continue to be focussed on transitioning to a single fleet type of Boeing 737s and will reduce its fleet by two aircraft with the removal of two Airbus A320 aircraft by mid-2020,” it said.

Virgin announced the fleet and network review in August along with moves to cut about 750 jobs and restructure its management.

The moves came after it reported an underlying loss before tax of $A71.2 million in the 2018-19 financial year and a statutory loss of $A315.4 million.

Virgin chairman Elizabeth Bryant told the company’s annual meeting Wednesday the appointment of Scurrah was critical to stemming losses at the airline and he had a proven record of driving profitability.

“We set him a clear mandate to return the company to a profitable position and the board is very pleased with his early decisions,” she said.

 

 

ATSB recommends mandated A330 engine modification

ATSB Malaysia engines A330
A Malaysia Airlines A330.

A diversion by a Malaysia Airlines Airbus A330 to Alice Springs has prompted a call by Australian safety investigators for a mandatory modification to engines powering some versions of the jet.

The Australian Transport Safety Bureau has issued safety recommendations to the US  Federal Aviation Administration and engine manufacturer Pratt & Whitney calling on them to “maximize”  a modification that would prevent a component failure of the PW4170 series engine.

READ: Qantas grounds three 737NGs with cracks.

The recommendations stem from a January 18, 2018 incident in which a Malaysia Airlines Airbus A330-300 flying from Sydney to Kuala Lumpur diverted to Alice Springs in Central Australia due to a malfunctioning left engine.

ATSB investigators found that elevated temperatures had caused part of the third stage outer transition duct (OTD) to distort and fracture.

ATSB safety A330
The offending part. Image: P&W/ATSB

The large fractured section caused a blockage within the engine that created turbulent airflow, partially blocking a low-pressure turbine vane inlet stage and causing an increase in exhaust gas temperature.

The higher temperature led to low-pressure turbine blade failure, high vibration and compressor stall/surge events.

The ATSB found there had been 16 similar events globally within the past four years, all attributed to an increased thrust modification for the PW4000-100 engines called “Advanced 70”. This included five involving Malaysia Airlines aircraft.

Pratt & Whitney ceased producing the PW4000-100 series engines for the Airbus A330 in July 2017 but it has redesigned the OTD to withstand higher temperatures and the new hardware is available from this month.

Service bulletins will recommend the installation of the new ducts at the operator’s discretion but the ATSB would like to see the modifications made mandatory.

ATSB Director Transport Safety Stuart Macleod said that the ATSB welcomed the availability of the redesigned OTD

“This incident is an example of an engine modification that had undesirable consequences, and Pratt & Whitney has taken timely and significant safety action to redesign the outer transition duct,” ATSB director transport safety Stuart Macleod said.

“We have issued safety recommendations to Pratt & Whitney and to the United States Federal Aviation Administration, urging them to take action to maximise the fitment of the improved components,” Macleod said.

“If fleet-wide replacement is implemented, we expect this will address the safety issue.”

Malaysia Airlines told the ATSB it was conducting scheduled inspections to identify problems with the engines and would upgrade its fleet with the new OTD in stages.

The ATSB said the incident was also a reminder to pilots that the safest action when confronted with significantly abnormal indications in most instances was to land as soon as possible.

“Recognising that the crew’s response to the elevated temperature shortly after take-off was in accordance with the ECAM (electronic centralised aircraft monitoring) procedure, this occurrence highlights that significantly abnormal indications are often symptomatic of a developing problem,” Macleod said.

“In such circumstances, crews should give serious consideration to returning and landing the aircraft rather than continuing with the flight.”

 

Delta jazzes up its New Orleans presence with new lounge

delta new orleans lounge
Delta's New Sky Club in New Orleans. Image: Delta.

Gumbo, oysters and local beer are among the pleasures available at the latest Delta Sky Club at Louis Armstrong New Orleans International Airport’s new terminal.

The new Sky Club, located at the entrance to the C Concourse,  opened its doors November 6 and pays homage to the city and its celebrated art, jazz, and cuisine.

This includes design inspired by local culture and regionally-inspired artwork, including pieces from local artists.

READ: Delta ups the ante with major international main cabin revamp.

Other highlights include a regionally-inspired cuisine including oysters, gumbo and muffuletta sandwiches rotating seasonally.

The food can be washed down with seasonal cocktails as well as beer from the Abita, Gnarly Barley and Port Orleans brewing companies or wine selected by Delta’s Master Sommelier Andrea Robinson.

The comfortable seating features power outlets at every seat and the airline is promising high-speed Wi-Fi.

Dalta
Photo: Delta

“This new Delta Sky Club creates an ideal space for guests to recharge,” Delta Sky Club managing director Claude Roussel said in announcing the lounge’s opening.

“The unmatched Club experience will wow our guests traveling through New Orleans.”

The new facility replaces the existing New Orleans Club for passengers on Delta flights.

Delta offers 25 peak-day departures with nonstop service to eight of its U.S. hubs, including three daily flights to New York City (LaGuardia and JFK) and two daily flights to Los Angeles.

The $US1.3 billion new terminal in which the club and Delta have now situated spans 972,000 square feet and features three concourses, 35 gates, and several additional parking options.

The New Orleans Sky Club is among several end-of-year upgrades being unveiled by the airline, including more comfortable seating and a completely redesigned food and bar experience at the John F. Kennedy International Airport Terminal 4 Club.

Enhancements in the pipeline include an almost 28,000-square-foot new Sky Club at Salt Lake International Airport in 2020 and a new facility at Los Angeles International Airport in 2022, both of which will feature a Sky Deck.

Over the past several years, Delta also opened new Clubs at Austin-Bergstrom International Airport and Phoenix Sky Harbor International Airport and a refreshed Club at Ronald Reagan Washington National Airport, along with new flagship clubs at Hartsfield-Jackson Atlanta International Airport and Seattle-Tacoma International Airport.

The airline has also now launched its enhanced international economy-class service on eligible flights worldwide. This features hot towels, a welcome cocktail, on-demand snacks and improved meals with greater choice.

 

Boeing proposes “fewest steps to the moon”

Boeing moon
The Integrated Human lander System. Image: Boeing

Boeing has proposed using one rocket launch to deliver an integrated lunar lander system to lunar orbit as part of US plans to return to the moon under the Artemis program.

The aerospace giant says the approach reduces the complexity and risk of sending multiple elements into space on a number of launches and reduces the number of “mission-critical” events to five from the 11 it says are required by other strategies.

It says its integrated lander also can carry itself from lunar orbit to the surface without an additional transfer stage or “space tug,” further reducing launches and simplifying the steps to a successful landing.

READ: Boeing’s Starliner passes crucial test.

“Using the lift capability of NASA’s Space Launch System (SLS) Block 1B, we have developed a ‘Fewest Steps to the Moon’ approach that minimizes mission complexity, while offering the safest and most direct path to the lunar surface,” said Jim Chilton, senior vice president of Space and Launch for Boeing Defense, Space & Security.

US President Donald Trump issued a policy directive in 2017 directing NASA to return astronauts to the moon before heading to Mars.

The administration wants to land humans by 2024 and NASA has indicated it intends to land the first woman on the moon as part of the program.

Artemis has several components including the Lunar Orbital Platform-Gateway, a space station around the moon that would be accessed by the Orion Multi-Purpose Crew Vehicle designed to take astronauts beyond Earth orbit and capable of carrying up to six astronauts.

Several private companies, including Space X and Blue Origin, are also competing for the project.

Boeing proposes using the giant SLS rocket currently in production at NASA’s Michoud Assembly Facility (MAF), arguing it has “unmatched lift capability that builds on proven flight components”.

This approach shortens development time and lowers risk, enabling NASA to safely land on the moon’s surface by 2024, it says.

Boeing moon
Lift-off from the lunar surface. Image: Boeing.

It argues the lander’s flexible design allows for the fastest path to lunar flights while providing a robust platform that can perform NASA’s full range of exploration missions.

The spacecraft will be able to dock with the Gateway lunar orbiter or directly with NASA’s Orion to eliminate the need for an additional spacecraft.

The aerospace giant is promising advances in the design that include innovations in its engines, composites, and automated landing and rendezvous systems.

It says key technologies are based on its CST-100 Starliner spacecraft, which recently passed a crucial abort test will be fully demonstrated during a flight to the International Space Station planned for December.

Boeing partnered with NASA’s Marshall Space Flight Center, Johnson Space Center, and Kennedy Space Center and says it will collaborate closely with NASA to integrate, certify, and operate its system.

Air France CEO slams obsolete, problem-prone A380

A380
Photo: Eric Salard, Wikimedia Commons

Air France has already announced it will phase out its ten Airbus A380s by 2022. Rarely has an airline been as unhappy with the Airbus giant as the French, who are in general taking every Airbus aircraft. CEO Anne Rigail talked exclusively with AirlineRatings during the recent inaugural A350 flight from Paris to Toronto.

Air France A380
Air france CEO Anne Rigail. Photo: Andreas Spaeth.

 

It seems the A380 was always more a burden than a vehicle of choice for Air France, do you agree?

 

Anne Rigail: I would not say that it was a burden from the beginning. I don’t know if anyone would have been able to forecast it at the time, but the A350 and the Dreamliner just made the A380 totally obsolete, too expensive, too big. Operationally it has always been a very difficult aircraft, you need specific ramp equipment, you need to rebuild runways and taxiways, you need special boarding ramps. I say this because I was working at our CDG hub when the A380 arrived – operationally it has always been problematic. Because you even need special training for everyone on the ramp, I have never seen this before. In comparison, it’s so easy to train people to handle an A350. But when the A380 came to Air France in 2009, it replaced two aircraft types, so on the cost side, it wasn’t too bad. Since the efficiency of the A350 and the 787 is the same, but with less capacity and more flexibility, you can put them on any route. So, of course, the A380 is no longer useful. And we have all kinds of problems with it – related to the structure, the engines. And not only now when the aircraft get older – it has always been difficult with the A380.

READ: Cebu Pacific firms order for world’s most crowded plane

But still, it creates positive emotions for passengers.

 

Rigail: Customers love this aircraft and they still do. It’s quiet, it’s big, it’s beautiful. I like to see A380s in the morning when they take off. But now we feel it’s a constraint, but it’s a bit sad that Airbus now stops production. We still like this aircraft, but it’s not suitable to keep it while pursuing our strategy because you must put it on your busiest routes. The investment for cabin upgrades is huge – it would cost us €35m per aircraft, I did the research myself.

 

Air France always promised an upgrade of the 2009-vintage cabins would start “soon”…

 

Rigail: Yes, I said that myself and we were quite committed to do it. But when you look at the overall investment when you add the refurbishment and the heavy maintenance checks due soon, the cost is so high that we think it’s better to renew the fleet. It is just more beneficial for the years to come to have new generation aircraft. I think the A380 is just outdated now.

 

Air France still goes with Airbus, has just ordered the A220, are you also considering the A321XLR?

 

Rigail: Our medium-haul fleet will consist of one half of the Airbus A220 of which we will get 60 delivered between 2021 and 2025. The other half will be A320s and A321s that we will keep. The answer to the question by which aircraft type this half of the fleet will ultimately be replaced is in progress, we haven’t decided anything yet, but the A321XLR is an option. We know it is a fantastic aircraft. It can bring a new market proposition and we look at it with a special focus and are doing our studies. It would replace the older part of the fleet and it is a flexible aircraft. It is not a short-term priority, but rather the partial renewal of the medium-haul fleet replacing A318s and A319s with the A220s. That’s the first step. The next step will be to replace the A380, we study which aircraft will be suitable. Half our total fleet will be renewed by 2025, that’s a lot of aircraft, creating a huge pressure to build up the investment. So we focus to reduce our fixed costs.

 

But beyond this Air France is in the middle of a transformation process…

 

Rigail: We have to transform an old airline with all its management layers to achieve more efficient processes in operations. And what’s new is that we want to design our new organization and revamped processes engaging with the people that live these processes on a day-to-day basis. This is a total cultural change. It is not only Air France engaging in a cultural transformation; if you go to all the big companies in France, everyone has the same targets – to work quicker, to digitize and change the decision-making processes.

 

KLM seems to be far ahead of Air France not only in this respect. When do you expect Air France to be on eye level with KLM?

 

Rigail: I expect our core profit margin to match that of KLM within five years, by 2024. But the question remains if we will be able to totally eliminate the current gap between Air France and KLM with the economical context of France, the level of taxes and social charges in France. To totally eliminate this gap we need a strong alignment with the government on the strategy of the French transport industry. We just had two airline bankruptcies (Aigle Azur and XL Airways, the editor) and we will have a new eco tax like in Germany. But we need to work with the government to create a level playing field for competition.

 

Air France has taken over all of the group’s Airbus A350 orders. Aren’t there more unused synergies like this with KLM?

 

Rigail: This is an example of fleet simplification and this swap was a good move even if we keep the 787s in our long haul fleet as well, which is big enough for different types of aircraft. We are getting rid of the A340s and A380s and stay with A330s and A350s, and of course our large Boeing 777 fleet, plus ten 787-9s by early 2020. With three different kinds of cockpit crews, it will be a lot better than now. And in many other areas, both companies and also myself, we live synergies every day.

 

 

 

 

 

THE RATINGS YOU NEED!

AIRLINE SAFETY RATINGS
The only place in the world to get ALL Airline Safety Ratings in one place! The ONLY airline rating that includes Safety, Product and COVID-19 safety ratings! Visit our Ratings Now!

2024 Airline Excellence Awards

View our special section announcing the 2024 Airline Excellence Awards!

AIRLINERATINGS NEWSLETTER

Subscribe to have AirlineRatings.com Newsletter delivered to your inbox!

STAY CONNECTED

61,936FansLike
2,336FollowersFollow
4,714FollowersFollow
681FollowersFollow
Cookie settings