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Airbus, Bombardier tie-up adds A220 to impressive portfolio

Airbus A220 Bombardier
Airbus A220, the former C Series, arrives at Toulouse.

The Airbus, Bombardier tie-up consummated on July 1 has given birth to a rebranded C Series – the A220.

The future of the Bombardier C Series regional jet appears as blue as the skies over Toulouse today when the rebranded A220 aircraft was unveiled in its new livery.

And Airbus and Bombardier are forecasting robust sales for the 100-141 seat A220 series.

David Dufrenois Head of Sales for the C Series said that “we believe that the C Series will be excellent product ahead of the competition.”

“The comfort is outstanding with 18-inch seats and big windows. It is also quietest.”

Importantly the CSeries will be fully integrated into the A320 family.

Eventually, it is hoped that the cockpits of the Bombardier C Series and Airbus A320 types will be fully integrated for cross-crew flying.

And Mr Dufrenois is focused on the US regional market which accounts for 40 percent of the global market. “I have no doubt we will be successful and our global sales force is mobilized.”

Bob Dewar Vice President & General Manager C Series at Bombardier Aerospace said he was super excited about the collaboration and said it puts the program on a solid foundation.

Christine de Gagne CSeries interior, cabin marketing manager said the C Series has been a big hit with passengers.“It has the largest overhead bin space and passengers love the light and airy cabin,” Ms de Gagne said.

Media press conference at Airbus Toulouse

The C Series Aircraft Limited Partnership became official closed on July 1.

Airbus is joined in the project by Bombardier which now owns 34 percent, and Investissement Québec, which owns 16 percent.

CSALP’s head office, primary assembly line, and related functions are based in Mirabel, Quebec.

CSALP is claiming that the E190E2 with 100 seats has costs per seat 13% higher than the CS 100 and the E195E2 with 124 seats also has 13% higher costs than the CS 300.

Airbus will provide procurement,  sales and marketing and customer support expertise to the venture and sees the 100 to 150 seat C series as “highly complementary” to its single-aisle aircraft in the 150-240-seat range.

The partnership brings two airliners into the Airbus line-up, the CS100 and the bigger CS300, to combine with the European manufacturer’s A319 to compete in the lower end of the single-aisle market.

The C series first flew in 2016 with Swiss International Airlines and the CS100 flies up to 133 passengers in a single-class configuration while the CS300 can handle up to 160.

New York-based analysts Bernstein like the Airbus/Bombardier deal and the Boeing/Embraer deal.

In a client report, it says: “Boeing and Airbus have now each taken steps to move down toward the regional jet market in respective deals with Embraer and Bombardier. We like each deal, but they are very different. Boeing is buying an 80% stake in a profitable going concern at Embraer for $3.8bn. Airbus is buying 50.01% of the C Series from Bombardier for effectively nothing.”

It adds: “Both deals broaden acquirers’ program portfolios and each is intended to leverage scale and strength of sales, support, and supply chain capabilities. But, we see Boeing’s Embraer JV as an acquisition of a profitable program portfolio, plus the capture of significant operational capabilities for engineering, manufacturing, flight test, and component sourcing. In contrast, we see Airbus’ C Series deal as a free option to improve an unprofitable program. The Airbus deal does not appear to provide the same access to capabilities as does the Boeing deal.”

Bernstein says “the C Series deal is possible because the Quebec government saw no other profitability path for the program. Bombardier is responsible for losses over the next 3 years, up to $700m. This means that after 3 years, if the program works, Airbus will continue to sell it. If it stays unprofitable, then it could be shut down. There is no downside risk. Airbus hopes to use its leverage to lower supplier costs and raise sales.”

Emirates launches new app with 2-for-1 deal

Emirates SkywardsGO app deal
PHOTO: Emirates

Dubai-based Emirates is offering more than 4400 two-for-one deals in restaurants and spas across more than 20 cities to launch its new Emirates Skywards GO travel app.

The loyalty program travel app, which can be downloaded free on iOS and Andriod devices, also offers access to day planners, city guides and the ability to book discounted tours and attractions in more than 160 destinations.

The airline is touting the travel app as complementary to its existing Emirates app, which allows members to check their miles and tier status.

Travelers can plan their entire trip and save it on the app.

READ: Check it out before you fly with Emirates’ virtual reality.

The 2-for-1 offers, launched in conjunction with incentive company TheENTERTAINER,  can be unlocked with 6,700 Skywards Miles and are available in more than  20  destinations served by  Emirates, including Dubai, London, Hong Kong and Johannesburg.

After unlocking the app, members will have six months to start using the 2-for-1 vouchers and will have 30 days after redeeming the first voucher to enjoy as many offers as they want.

Two vouchers can be used for a group of four people and if two Skywards members have the offer pack, merchants will accept up to four vouchers covering eight people.

Emirates has been moving to make its Skywards program more flexible.

WATCH: Wing Clouds make for stunning video.

It announced in May it would make it cheaper for members to buy, gift or transfer miles.

The cost of buying or gifting Miles was adjusted to $US30 per 1,000 Miles while transferring Miles costs $US15 per 1,000 Miles giving members the opportunity to earn rewards faster.

Transaction limits have also been increased enabling members to buy or gift up to 100,000 Skywards Miles per year and transfer up to 50,000 Miles a year.

The program also allowed members to reinstate expired Miles. Members who have miles that have expired in the last six months can reinstate them at a nominal charge of $US20 per 1,000 Miles.

In June, it announced it would allow families to pool up to 100 percent of Miles under a new “My Family” program.

Each account can have up to eight family members including a nominated family head.

Chic new Air France ticket offices combine digital and personal touch

Air frannce new ticketing offices
One of the new ticketing offices. Photo: Air France.

Air France may be plagued by industrial unrest and leadership woes but nobody can argue its new ticket offices lack style.

The airline has launched its new downtown ticket office concept in Toulouse and Bordeaux with Nice, Lille, Lyon, Strasbourg and Marseille on their way.

The airline says the new offices find a balance between digital services and human presence.

Customers can make appointments with a travel advisor via a dedicated app or use self-service desks with digital tablets.

There’s a virtual reality experience to showcase new cabins and destinations as well as personal tips adapted to each customer’s profile and expectations.

The redesigned offices offer a face-to-face sales area as well as “Design by Air France” section selling airline products such as comfort kits, suitcases, travel bags, passport holders and baggage tags.

A “Travel by Air France” area offers projections from the company’s digital travel guide to “give the customer the feeling of having already arrived at their destination”.

France’s Le Figaro newspaper has reported that Air France-KLM is closer to appointing a new boss and that it could be Catherine Guillouard, who currently heads the Paris metro.

Guillouard spent a is a former Air France chief financial officer who spent a decade at the airline and is on the board of aircraft manufacturer Airbus.

However, she has been at her current job for less than a year.

The company has been hunting for a new CEO after Jean-Marc Janaillac resigned in May after workers voted down a pay offer.

READ:  Air France strikes continue as crisis prompts survival warning.

Meanwhile, Air France-KLM on Monday reported that passenger traffic in revenue passenger kilometres was up 3.5 percent in June, with Air France and HOP! Up 3.5 percent and KLM up 3.6 percent.

The load factor at the group rose 1.5 percentage points to 88.8 percent while June passenger numbers were up 2.9 percent to 7.74 million.

French believe cockpit fire caused Egyptair MS-804 disaster

Egyptair cockpit fire 2016 crash

French authorities have taken the unusual step of publicly criticizing Egypt’s handling of a fatal  Airbus A320 crash, saying the most likely cause was a cockpit fire rather than a malicious act of terrorism.

Egyptair flight MS-804 plunged into the Mediterranean about 130kms north of the Egyptian city of Alexandria on May 19, 2016, with 56 passengers and 10 crew on board.

Messages received from the plane prior to the crash indicated cockpit window temperature sensor problems and that smoke detectors had been activated.

The Egyptian Aircraft Accident Investigation Committee reported in December 2016, that traces of explosive substance had been found on human remains, suggesting that a bomb was involved.

READ Explosive traces found in Egyptair wreckage.

Because of this, it transferred the case to the Egyptian Prosecution Bureau for further investigation.

French air safety investigator BEA assisted with the safety investigation and on Friday released a statement outlining its cockpit fire theory and criticizing the Egyptians for failing to continue the safety investigation.

It noted the flight recorders stopped operating while the aircraft was at cruise altitude of 37,000 ft, the aircraft’s reporting system sent a message indicating smoke in the toilets and avionics bay and the flight data recorder confirms the message.

The cockpit voice recorder also revealed the crew talked about a fire and some debris had signs they were subject to high temperature and traces of soot.

The BEA also pointed to a signal from an emergency locator transmitter sent around eight minutes after the last transmission from the plane and data from Greek primary radar that the Egyptair aircraft descended in a turn before hitting the water.

“Based on these elements, the BEA considers that the most likely hypothesis is that a fire broke out in the cockpit while the aeroplane was flying at its cruise altitude and that the fire spread rapidly resulting in the loss of control of the aeroplane,’’ it said.

The BEA made an earlier call for further work to be done on the debris and flight recorder data but it said that this had not happened as far as it was aware.

It noted technical elements of investigation already conducted were now “protected” by the Egyptian judicial investigation.

“In an effort to continue the safety investigation mission, the BEA asked to meet the Egyptian Attorney General,’’ it said.

“This took place at the end of May 2018. In this meeting, the Egyptian authorities explained that as it had been determined that there had been a malicious act, the investigation now fell within the sole jurisdiction of the judicial authorities.

“The BEA’s Egyptian counterpart did not publish the final report which would have allowed the BEA to set out its differences of opinion as authorized by the international provisions.

“The BEA considers that it is necessary to have this final report in order to have the possibility of understanding the cause of the accident and to provide the aviation community with the safety lessons which could prevent future accidents.”

The French investigator said it stood ready to continue their collaboration with its Egyptian counterpart “should the latter restart the safety investigation into this accident”.

Optimistic Airbus raises 20-year aircraft forecast

Airbus China
Photo: Steve Creedy

Strong growth in emerging economies and evolving airline business models have prompted European manufacturer Airbus to boost its latest 20-year aircraft demand forecast by 7 percent compared to last year’s prediction.

The global fleet of passenger aircraft is expected to more than double to 48,000 in the next 20 years as plane-makers deliver more than 37,000 new aircraft valued at $US5.8 trillion at list prices.

Airbus is predicting the  37,390 new passenger and freighter aircraft will include  26,540 needed for growth and 10,850 to replace older, less fuel-efficient aircraft.

The figure is up from 34,900 aircraft in last year’s forecast as traffic grows at 4.4 percent.

Driving the growth will be an estimated 2.4 times increase in private consumption in emerging economies, higher disposable incomes and a near doubling of the middle classes globally.

The plane-maker forecast emerging countries would account for more than 60 percent of economic growth, with trips per capita to multiply 2.5 times for these nations.

Combined with evolving airline business models and continuing liberalization, Airbus said the growing scale of air transportation would lead to an increasing resilience to regional slowdowns.

Greater aircraft range and capacity through technological developments would allow airlines the flexibility to explore new business opportunities while maintaining focus on cost reduction.

“There is a growing trend to use aircraft across a broader range of operations, with today’s more capable aircraft blurring the boundaries between market segments,’’ Airbus chief operating officer Eric Schulz said.

“These realities made us develop a new segmentation with small, medium, large and extra-large categories, reflecting more closely the way airlines operate aircraft.”

Under the new categories, Airbus predicts the small aircraft segment — which covers most of today’s single-aisle aircraft — will need 28,550 new planes or about 75 percent of the total.

Read: Airbus formally takes on the C Series.

The medium segment, which includes smaller widebodies and longer-range single-aisle aircraft such as the A321neo, is tipped to need 5480 passenger and freight aircraft.

The large segment is where most of the company’s A350s reside and will require a forecast 1760 new aircraft.

The extra large segment, which includes high capacity long-range aircraft such as A350-1000 as well as the troubled A380 superjumbo, will need an estimated 1590 aircraft.

The company estimates the growth will see demand for  540,000 new pilots.

 

The dos and don’ts of flight upgrades

Flight upgrades
Flight upgrades are harder to get.

Once, getting an upgrade to business class was about who you knew, not what you know.

A call to a mate who had a direct line to the airline’s state manager would have you turning left, and not right, in a flash. Fast forward to the era of accountability, and in most cases, you have to battle with a very sophisticated computer system which does not care less who you know but only what your FF status is and how many points you have.

And with aircraft cabins almost always full, the game of airline seat monopoly has become more difficult.

According to The Points Whisperer aka Steve Hui, chief executive at www.iFLYflat.com.au,  as passenger numbers grow and airline profits shrink, the day of free and unscripted handouts are long gone.

WATCH: Automatic landing in blinding fog

“Today, upgrades are run by an airline process, involving both staff and systems working together,” says Mr. Hui. “Most airlines allocate them based on a ranking algorithm that considers the following from each passenger; loyalty status, fare type/class; the size of traveling party, the timing of your request and original booking and type of flight, length, connecting route.”

READ: Check out before you fly with Emirates 3D virtual reality 

Mr. Hui points out that not all upgrades happen at the last minute. “Airlines in recent years have been improving their pre-flight upgrade options by developing ‘bidding’ systems that are run by algorithms to offload (sell) business class seats on specific flights.”

This is particularly the case for holiday periods when business class traffic is low and school holiday passenger loads are high.

Upgrades are all about FF status
Upgrades are all about FF status. Air Canada 787 business class

Many airlines now have bidding systems built into the online reservation with sliders to give you an indication of your potential success level.

“You may (also) be invited by email or SMS to upgrade using cash, or more often – your points, “says Mr. Hui.

However, he points out that that number of points needed for an upgrade is now very close to that needed for a full business class redemption. For example, to bid for an upgrade on a Perth to London flight with one airline is 120,000 points and you don’t know until 24 hours before if you are successful.

“However, an outright points redemption in business class oneway is just 128,000 points.”

For just 8,000 points you have the comfort and enjoyment of knowing you’re flying up front. And just to make things confusing the systems vary significantly between airlines, with some not having the sophisticated reservation computers to orchestrate complex points upgrades or bidding.

That is where at holiday time, dressing to impress can help, suggests one Perth airline airport manager responsible for handing out upgrades.

“There is no question at holiday time there are a few spares seats up front,” he says. “Dress like you belong in the back and that is where you will stay. A middle-aged well-dressed couple is our target.”

So here are the tips:

Prior to the airport

  • Applying with Frequent Flyer points
  • Bidding with cash / FF Frequent Flyer points

At the airport

  • Last minute cash / Frequent Flyer points upgrade deal
  • Frequent Flyer status with the airline
  • Frequent flyer status with airline’s alliance partners (Oneworld / Star)
  • Single traveler
  • Well dressed, middle age couple

What will not work

  • It’s my birthday
  • It’s our anniversary
  • You lost my baggage last time
  • The state manager said he/she would fix it
  • Abuse

A380 gets second lease on life with HiFly

Singapore Airlines
A Singapore Airlines A380 at Sydney airport in happier times. Photo: Steve Creedy

Portuguese wet-lease specialist HiFly has become the first airline to take on a second-hand Airbus A380 after it Thursday announced it had welcomed a former Singapore Airlines superjumbo into its fleet.

The A380, which HiFly described as its “first”, makes it the fourth European carrier to take the big plane and the 14th operator globally. It is one of the A380s  Singapore handed back after their leases expired.

The Portuguese company took the double-decker plane in a deal done with German lessor Doric and said it would operate it in Singapore’s 471-seat three-class configuration, although it noted it could seat up to 853 in a single-class layout.

“We welcome the arrival of the Airbus A380 in our fleet and we are extremely happy with the market reaction so far on this new availability in our wet lease product offering,’’ HiFly chief executive Paulo Mirpuri said in the announcement.

“The A380, besides being the largest and most comfortable airliner in the world, is a star and the preferred aircraft from a customer experience perspective, including double first class suites, lounges, extra-large business class seats and individual IFE at each ergonomic economy seat.”

HiFly specializes in supplying aircraft and crew, maintenance and insurance — wet leasing — to airlines.

The news will be welcome in Toulouse after German leasing company Dr Peters confirmed in June that two other Singapore Airlines Airbus A380s were to be broken up and their components sold.

READ: A380 faces uncertainty as it marks 10 years in service.

Dr Peters said the decision came after intensive negotiations with airlines such as British Airways, Iran Air and Hi-Fly did not result in lease agreements that would satisfy investors’ requirements.

“The market for the A380-800 aircraft type has not developed positively in recent years,’’ Dr Peters chief executive Anselm Gehling said at the time.

“Some airlines have canceled orders from Airbus, while others have opted for smaller long-haul jets.

“Finally, the ongoing negative discussion about the A380-800 has not led airlines to increasingly rely on this type of aircraft.”

The A380 was thrown a lifeline when the world’s biggest operator of the plane, Emirates, signed a deal for up to 36 aircraft to be delivered from 2020.

The deal for 20 firm orders and 16 options was valued at $US16 million at list prices and allowed Airbus to continue production.

The new order brought Emirates’ commitment to the A380 program to 178 aircraft worth more than $US60 billion.

New Airbus chief salesman Eric Schulz told reporters at the sidelines of this year’s  IATA annual meeting there were still market opportunities for the A380 with existing and new operators.

He said the Emirates order had ensured the aircraft was industrially viable and could remain in production.

He also argued the concept of being able to better service saturated airports had been proven by the aircraft’s popularity at London Heathrow, where 10 percent of flights were on A380s.

However, he conceded there were not as many slot-constrained airports as had been predicted a decade ago

Trent 1000 issue prompts ANA to cancel 113 flights.

Rolls-Royce Trent 1000 ANA cancels
Photo: Rolls-Royce

Rolls-Royce Trent 1000 engines powering Boeing 787s continue to cause grief for airlines with Japanese carrier All Nippon Airways (ANA) canceling more than 100 domestic flights from today.

The 113 July 6 to July 12 cancellations are necessary to allow the airline to carry out mandatory inspections on Trent 1000 engines using blades that could wear prematurely.

“We deeply apologize for the inconveniences caused to our customers,” ANA chief executive Yuji Hirako said in a message to customers.

“Over the last two years, we have been working very closely with Rolls-Royce and the regulatory authorities to minimize the impact to our flight schedule.

“However, due to the additional mandatory inspections which were announced in mid-June, we are canceling a limited number of flights.”

No international flights were affected by the inspections and the airline said passengers with reservations on the canceled flights would be re-accommodated to fulfill their travel itineraries.

“Safety is always our top priority for our customers, and we consider these cancellations unavoidable to maintain our highest safety standards,’’ Hirako said.

The engine issue is a massive headache for Rolls-Royce and primarily affects engines known as Package C.

This was compounded when the UK manufacturer announced in June that airlines with older Boeing 787 Trent 1000 engines would need to perform inspections because compressor blades in those engines may also be wearing prematurely.

READ: Rolls-Royce to axe 4600 jobs as problems found in older 787 engines.

The finding that Package B engines in service since 2012 could also be affected by a  blade durability issue came as the engine-maker continued to grapple with the fall-out of the issue with its Package C engines.

The package B problem added another 166 engines to about 380 package C engines already under the microscope.

The engine issue has led to flight cancellations and aircraft groundings as airlines faced increased inspections, range restrictions and delays in getting engines repaired. Some airlines have had to lease aircraft to replace out-of-service 787s.

The issue was first uncovered on ANA aircraft in 2016 and the airline is one of several which has experienced engine failures as a result of the flaw.

 

Passenger demand strong in May despite fare hike warnings

airports

Passenger demand remained strong in May despite a slew of predictions about fare increases and warnings about a global trade war.

Global demand rose 6.1 percent to May 2017 and planes flew marginally fuller with a 0.1 percent rise load factor to 80.1 percent, according to new figures from the International Air Transport Association.

Most airlines are now singing from the same hymn sheet when it comes to fare increases and rising fuel costs.  IATA last month said it expected an average global increase in fares of about 3 percent this year with jet fuel prices expected to be 26 percent higher than last year.

However, other estimates suggest the fare increases could be higher.

READ: Fares to rise as fuel increases hit profits.

Added to this was another warning IATA director general Alexandre de Juniac about rising trade tensions.

“Last month, IATA released its mid-year economic report showing expectations of an industry net profit of $33.8 billion,’’ de Juniac said.

“This is a solid performance. But our buffer against shocks is just $7.76. That’s the average profit per passenger that airlines will make this year—a narrow 4.1 percent net margin.

“And there are storm clouds on the horizon, including rising cost inputs, growing protectionist sentiment and the risk of trade wars, as well as geopolitical tensions.”

Worldwide international passenger demand growth in May was 5.8 percent,  up from 4.6 percent in April.

WATCH: Scary take-off.

International traffic growth was strongest in the Asia-Pacific where demand grew by  8.0 percent with load factors continuing to rise.

“Passenger traffic has continued to trend strongly upwards in seasonally-adjusted terms, buoyed by a combination of robust regional economic growth and increases in the number of route options for travelers,’’ IATA said.

Traffic also rose in other regions with Europe up 6.2 percent, North America rising 4.9 per cent, Africa increasing 3.8 percent and Latin America experiencing a 7.5 increase in international traffic demand for May compared with last year.

The slowest growth was Middle East carriers at just 0.8 per cent, down from 2.9 percent in April.

IATA said an earlier Ramadan might have been a factor in the region’s slowdown “ but more broadly, the upward trend in traffic has slowed compared to last year”.

Domestic demand rose 6.6 percent globally, led by China (11.9 percent) and India (16.6 percent).

“Passenger volumes in India have fallen back in seasonally-adjusted terms in recent months alongside some mixed signals on the economic front,’’ IATA said. “Notwithstanding this, May was India’s 45th consecutive month of double-digit annual RPK growth

“Demand continues to be supported by strong growth in the number of airport connections within the country: some 22 percent more airport-pairs are scheduled to operate in 2018 compared to last year.”

The moderating growth in India and China was partially offset by a “mild pick-up” on domestic US routes of 5.5 percent, IATA said.

The perennial tail-end Charlie of IATA’s basket of domestic markets,  Australia, recorded 1.7 percent demand growth in May and a 2.5 percent increase in capacity.

 

 

JetBlue bets big on Cuba

JetBlue bets big on Cuba
Photo: JetBlue

The fact that JetBlue is getting set to launch nonstop Boston-Havana flights from November 10  has implications far beyond connecting two dots on the route map.

It seems to signal that the low fare-high touch US airline is, if not exactly staking its future on Cuban connections, at least looking at the U.S.-Cuban market as one worth cultivating for the long term.

With the addition of Boston, “JetBlue will operate more than 50 weekly flights between the U.S. and Cuba from every one of our East Coast focus cities,” says John Checketts, the carrier’s vice president of network planning.

That means New York JFK, Fort Lauderdale/Hollywood International and Orlando – along with Boston – are all anchors for the beefed-up Cuba service.

JetBlue was the first U.S. airline to operate full-blown commercial flights between the U.S. and the once-isolated island nation in some 50 years. Even as many competitor carriers pared back Cuban flights after an initial rush to launch them, JetBlue decided to up the ante instead.

READ: No Cigar for US-Cuba flights.

The new Boston nonstop is a Saturday-only affair. JetBlue connections to cities such as Detroit, Cleveland and Pittsburgh—among others—will render Havana just one change of planes away for travelers.

Boston Logan International looms large indeed in JetBlue’s scheme of things.

The airline intends to field some 200 daily departures from BOS in the coming years. JetBlue is also expanding Sunday through Friday flights between Fort Lauderdale/Hollywood International Airport and Havana’s Jose Marti International.

FLL is a linchpin for the airline’s Cuban operations, serving as well as Cuba’s capital city, Santa Clara, Camaguey and Holguin.

A note to potential Cuba-bound flyers: you must be qualified to a take the trip, belonging to one of the dozen approved categories travel categories outlined by the U.S. Department of the Treasury.

And US credit cards generally don’t work in Cuba, so remember to take cash.

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