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Boeing and flydubai in record order for 737s

Flydubai Boeing 737
Boeing 737 MAX

Boeing and flydubai have signed a record agreement for 225 737 MAX airplanes with a list price value of US$27 billion.

The deal is largest-ever single-aisle jet order – by number of airplanes and total value – from a Middle East carrier and will underpin the airline’s ambitious growth plans.

Signed at the 2017 Dubai Airshow, the agreement includes a commitment of 175 MAX airplanes and purchase rights for 50 additional MAXs.

When finalized, the purchase promises to sustain tens of thousands of direct and indirect jobs in Boeing’s U.S. factories and network of suppliers.

Read: Boeing 737 the plane that almost never was

More than 50 of the first 175 airplanes will be 737 MAX 10s, the newest and largest member of the 737 MAX family.

The MAX 10 will have the lowest seat-mile cost of any single-aisle airplane ever produced.

flydubai said the balance of the initial airplane order will be made up of the MAX 8 and MAX 9, giving the carrier a family of airplanes with high commonality and low operating costs.

This new deal surpasses the flydubai’s previous record order of 75 MAXs and 11 Next-Generation 737-800s which was signed at the 2013 Dubai Airshow.

“We welcome the continuation of our long partnership with Boeing. Their airplanes have provided a foundation for the success of our business model, providing us with the operational flexibility and range to build a network of 95 destinations in 44 countries,” said flydubai Chairman His Highness Sheikh Ahmed bin Saeed Al Maktoum.

“Understanding the demand for travel across our network, our innovative approach to our cabin design and developing a product unique to our market has allowed us to exceed our passengers’ expectations in their flying experience.”

“We are extremely honored that flydubai has selected to be an all-Boeing operator for many years to come. This record-breaking agreement builds on our strong partnership with flydubai and the other leading carriers of this region,” said Boeing Commercial Airplanes President & CEO Kevin McAllister.

“With flydubai’s proven business model and ambitious growth plans, we look forward to hundreds of flydubai 737 MAXs connecting Dubai with the rest of the world.”

The 737 MAX is the fastest-selling airplane in Boeing history, having surpassed 4,000 total orders from 92 customers.

To date, flydubai has taken delivery of 63 737-800s and three 737 MAX 8 airplanes.

Airbus’s record breaking A320 order

Frontier

Airbus has landed a record-breaking order with Indigo Partners signing an MOU for 430 Airbus A320neo aircraft.

Indigo controls four ultra-low-cost airlines Frontier Airlines (United States), JetSMART (Chile), Volaris (Mexico) and Wizz Air (Hungary).

The 430-aircraft commitment, comprised of 273 A320neos and 157 A321neos worth US$49.5 billion at list prices.

It was announced at the Dubai Airshow by Bill Franke, Managing Partner of Indigo Partners, and John Leahy, Airbus Chief Operating Officer Customers, Airbus Commercial Aircraft.

Airlines in the Indigo Partners family previously have placed orders for 427 A320 Family aircraft.

Volaris airlines orders Airbus A320s
Volaris will get 46 A320neo and 34 A321neos

“This significant commitment for 430 additional aircraft underscores our optimistic view of the growth potential of our family of low-cost airlines, as well as our confidence in the A320neo Family as a platform for that growth,” said Bill Franke.

Read: The World’s Best Airlines for 2018

“Our airlines know that a great aircraft coupled with a great business plan will create value for our customers. We look forward to bringing comfort and low fares to more passengers around the world as Wizz Air, Volaris, JetSMART and Frontier continue to expand.”

Jetsmart A320neo
Jetsmart will get 56 A320neo and 14 A321neos

John Leahy said; “Indigo Partners has been a tremendous customer and supporter of the Airbus single-aisle fleet for many years. An order for 430 aircraft is remarkable, but it’s particularly gratifying to all of us at Airbus when it comes from a group of airline professionals who know our products, as well as the folks at Indigo Partners, do.  We are proud to augment their airline fleets in Latin America, North America, and Europe with the single-aisle aircraft that offers the lowest operating costs, longest range and most spacious cabin: the A320neo Family.”

Wizz Airbus A320neo
Wizz will get 72 A320neo and 74 A321neos

The breakdown of the orders is:

Wizz – 72 A320neo, 74 A321neo

Frontier – 100 A320neo, 34 A321neo

JetSMART – 56 A320neo, 14 A321neo

Volaris – 46 A320neo, 34 A321neo

Indigo Partners’ Bill Franke indicated that engine selections will be made and announced at a later date.

Indigo Partners LLC, is based in Phoenix, Arizona, and is a private equity fund focused on worldwide investments in air transportation.

Has Emirates missed the mark?

emirates and Stansted
The business class cabin. Photo: Emirates

Emirates has missed the mark with its cabin upgrades announced this week.

A warmed-over business class in the unpopular 2-3-2 configuration (for the 777) and no premium economy goes against what the market is now demanding and will put the airline at a competitive disadvantage.

Read: Emirates catches up in First Class race.

Certainly, the first class is superb but doesn’t quite match the Singapore Airlines product announced last week or Etihad’s product which has been out for almost two years.

Emirates has built its reputation on being first with innovations and has delivered a great value proposition over the past two decades.

However, it is no longer the pacesetter.

Qatar Airways and Etihad Airways have leapfrogged the airline at the front end while Singapore Airlines a major innovated through the 80s and 90s has got its mojo back.

First class for many airlines is a dying breed as business class gets better and better.

Less than 1 percent of passengers fly true first class on international routes and premium traffic (business and first) accounts for about 6 percent according to the most recent IATA figures.

Emirates business class on the A380, which unlike the 777 configuration offers individual pod, is now almost ten years old and while it has had a refresh the differences are minor.

A big plus however continues to be the Emirates A380 premium classes bar which is extremely popular.

Emirates Business Class Lounge
Emirates Business Class Lounge is extremely popular

But for passengers booking an Emirates business class experience, the variation in the product between the 777 and A380 is an issue.

Aside from the business class product, the big miss for Emirates is that it continues to turn it back on premium economy.

Read: The World’s Best Airlines for 2018

The airline is now connecting the far reaches of the world with some of the longest ranged flights which are ripe for a premium economy product.

For instance, British Airways, which was among the first to introduce premium economy in the early 1990s, has 44 premium economy seats on its 777-300ERs and 55 on its A380s.

And more and more airlines are adopting the class as the height of the population increases and airlines squeeze economy to offer lower fares.

Cathay Pacific Airways and Singapore Airlines are recent converts, Air New Zealand and Qantas have offered the product for many years.

qantas premium economy 787
Qantas premium economy on the Boeing 787

Certainly, changing the configurations of large aircraft and in large numbers is costly and not doing so may prove to be more costly in the long run.

With a new breed of long-haul low-cost airlines on the radar now is the time for innovation with offerings that attract economy passengers with a great value case.

Premium economy does that is spades.

Enough space to be comfortable and enough exclusive features, like dedicated check-in and priority boarding as well as better meal service, to add that touch of class.

Emirates won its mantle of the world’s largest international airline by being first not last.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emirates catches up in First Class race

Emirates first B777 first class

Emirates catching up in new First-Class product race but is it good enough?

In 2003 Emirates was the first airline to offer fully private suites in first class but other carriers are upping the ante and the Dubai-based carrier has had to play catch up.

At this week’s Dubai Air Show, Emirates launched a few industry firsts in first class but the question is, are they really enhancing the experience?

Read: Has Emirates missed the mark?

Sir Tim Clark, President of Emirates Airlines, is one of the foremost aviation industry visionaries and he helped launch Emirates in 1985.

And very unusually, Sir Tim is a very hands-on executive when it comes to product enhancements such as showers in first class.

Now Sir Tim has reached out again to bring the industry some firsts.

Sir Tim Clark
Sir Tim Clark – President of Emirates

Since the days of the A380 product design it had been Sir Tim’s vision to offer a fully enclosed first-class compartment to his highest-paying customers, kind of a hotel room.

But a decade ago and until recently, aviation safety regulations were against it, crews had to be able to check on passengers. “We started the process in 2013 when we fitted out Emirates’ Executive A319, but still it was impossible then to offer fully enclosed suites, even on a private jet”, he recalls.

Then there was new hope as, according to Sir Tim, rules recently changed. “It is now more relaxed on enclosed suites, while it’s become tougher on other issues.”

At the Dubai Air Show, Sir Tim was able to unveil the world’s first fully enclosed first class suite, initially being introduced on newly delivered Boeing 777-300ERs only.

And don’t get too excited – while Emirates flies almost 150 Boeing 777s, the world’s biggest fleet of its type, “a maximum of eight to nine aircraft will have the new product by the end of 2019”, admits Sir Tim.

Binoculars, Emirates
Emirates first class passengers get real binoculars from German manufacturer Steiner to gaze at the world outside.

Dubai to Geneva and Brussels passengers will be the first experience of the new product from December 1.

“As we get more aircraft delivered Chicago, Brisbane and Perth are additional destinations likely to get the new product, but we need 2.5 aircraft to serve each of these ultra-long-haul destinations”, reveals Sir Tim.

And it is not clear if existing 777-300ERs will be retrofitted. Current A380s, however, are earmarked for conversion over a longer period of time, with eleven new Suites replacing 14 older ones.

Read: The World’s Best Airlines for 2018

So, what is the new product actually like, and which innovations are really making a difference? AirlineRatings.com was able to check it out the first Boeing 777-300ER with the new product, freshly delivered from Seattle in time for the Dubai Air Show.

First Class consists of six suites, compared to eight before, and they come in 1-1-1 configuration, namely 1+2A, 1+2E and 1+2K.

The most spectacular ones are, surprisingly, the E-suites in the middle, as they contain a real novelty: Three fake windows on the right side that show projections of the outside.

Emirates First Class Suites have fake windows
Emirates First Class Suites located in the center of the aircraft have fake windows with a camera view

“There are two fiber-optic cameras on the outside of seats 1A and 1K, and the passenger in the middle can choose which side he or she wants to see as a video projection in the Suite’s windows”, explains Sir Tim.

The passengers in the actual window seats are getting “compensated” with real binoculars of German manufacturer Steiner to peek outside, as part of their Suite’s equipment.

And the great part is that being an enclosed suite you can leave your window shades open all the time.

The Suites, which are 2,13 meters long and measure up to 3.7 square meters, are now fully enclosed by manually operated, single-piece doors (opposed to a two-piece, electrically operated ones), reaching up to 2.21 meters height.

Another industry first, and a very clever way to both appease regulators and find a unique way of unobtrusive service delivery, is a turndown hatch built into the wall of the Suite.

Through the hatch, cabin crew can deliver food or drinks without actually opening the door or disturbing the passenger, and at the same time, they can check on the passenger in emergencies.

In another industry first, a handheld tablet screen in the suite, allows the passenger to do a video room service call into the galley, a mere few meters away, to order service of any kind. But why this is a better way to just talk face to face with a human being standing before you is hard to grasp. There is also an option to just do a voice call to the galley.

Video call in Emirates First Class
AirlineRatings.com European Editor Andreas Spaeth calls up for room service.

The suite is impressive due to its high ceiling, lots of storage options, and its many innovative features, ranging from choosing your personal sequence of mood lighting to individually control your suite’s temperature.

This is a feature that clearly comes from upmarket automobiles, which is a no-brainer as Mercedes was a design partner for the Emirates suites. While the seat, made of finest leather, is upright, it is easy to stand up in the Suite, stretch or get changed into the moisturizing pajamas provided.

https://www.youtube.com/watch?v=ibqncXGMa4E

For lounging, Emirates offers a feature called “zero gravity seat setting inspired by NASA technology”. During a brief test on the ground, this didn’t seem to be unusually comfortable, at least not for a large male.

The bed length of 78” (1.98 meters) hasn’t changed compared to the current product, only the seat is wider with 30” (76cm). Unlike competitors such as Singapore Airlines in their Suites, Emirates doesn’t offer the option of having double beds by lowering dividers between suites.

“Unless you are very small, the bed only fits one”, says Sir Tim Clark. “But there is plenty of room to sit with a traveling partner.” Asked if there had been any incidents so far with passengers becoming too cozy in a suite, he asserted: “Generally, people behave.” But then, that was before the age of fully enclosed Suites.

 

Australian regulator works with Google on safe drone deliveries

regional drones

Australia’s air safety regulator is working with Google parent company Alphabet to “road test” ways of assessing the risks involved with using drones to deliver packages and other items.

The move comes as the Civil Aviation Safety Authority is working its way through more than 900 responses to a review into drone safety and estimates of the number recreational and professional drone users in Australia may have  topped the 100,000 mark.

Google revealed in October that its Project Wing had begun trials of  deliveries for Mexican food chain Guzman y Gomez and Chemist Warehouse to farms on the NSW/ACT border.

The trials involved deliveries to farmers near Royalla, a town about 35kms from Canberra, who usually faced a 40-minute round trip to pick up supplies.

CASA boss Shane Carmody told the Australian Airports Association annual conference in Adelaide on Wednesday that Google was seeking approval to operate outside existing regulations so it could do things such as one pilot to operate multiple drones at once.

Mr Carmody said Alphabet had recently conducted a trial involving the delivery of a burrito in Canberra, joking that he considered putting  second drone behind it with microwave so that when it arrive warm.

“They’re trying to work out ways to test capability so we’re talking pizza, mail, packages,’’ he said.

“But what we’re not really  talking pizza, mail and packages, what we’re really talking about is a change to the system and trying to find  ways to make this operate safely and effectively.

“And we’ve reached an agreement with Google to road-test some specific operational risks on unmanned systems for that very reason,  as we try and keep pace with and get ahead of this challenge.’’

The risk assessment will use methodologies developed by the Joint Authorities for Rulemaking on Unmanned Systems (JARUS), a group of experts working on a single set of requirements for the safe operation of drones.

The use of drones is prohibited near aerodromes but the increasing popularity of the technology has sparked worries of potential conflicts with aircraft, prompting a parliamentary inquiry and the CASA review.

Mr Carmody said the number of drone operators – effectively the equivalent of Air Operator’s Certificate holders – had risen from 220 in 2014 to 1208.

The number of drone licence holders, pilot licence equivalents, had jumped  from 704 to 6744 and there had been almost 8600 notifications to fly a drone of less than 2kg commercially since September, 2016.

“Then we have the private users, your mums, dads and kids flying for fun,’’ he said. “ There is no way to accurately to calculate the numbers on those but estimates are between 50,000 and 100,000.”

CASA’s review is now closed and Mr Carmody said an analysis of comments in the responses was underway.

Issues raised by the paper included safety benefits and cost effectiveness of registration, education, training and “geo-fencing”, a process where drones are programmed to avoid certain areas.

The CASA boss said he had also recently established a branch within CASA involving about 20 people to focus on all aspects of drones and which pulled together staff from other branches and sections of the organisation into one area.

CASA was ahead of many of its global counterparts in regulating drones in 2002 and it has had an education program underway since 2013.

“The communication and education program is very different to what we had to do in the past because many of these users are not part of the aviation system, they don’t see themselves as part of the aviation system,’’ he said “So we’re doing general education material to target audiences (such as ) teachers of upper primary (years 5-6) and lower secondary (years 7-8).

“We’ve also advertised in cinemas, engaged with retailers to provide guidance material at the point of sale and attended aviation events. “

Other moves to educate drone users include the launch of the “Can I fly There”  app In May this year  and the recent launch of dedicated website for recreational users of sub-2kg drones .

The app had proved popular and there had been more than 50,000 downloads by October while the web version see on average 18,000 unique visitors per month.

CASA is also working closely with the other organisations on drone trials to ensure aviation safety is maintained and their operations are conducted in line with the regulations.

 

Dubai A380 announcement prospects plummet

Emirates Clark
Emirates A380s at the airline's Dubai hub. Photo: Emirates

Expectations Emirates will announce an order more Airbus A380s at this week’s Dubai Airshow have slumped after the Gulf carrier revealed it wants assurances production will continue for at least another decade.

A failure by the A380’s strongest supporter to announce at the airshow will come as a double blow to the European manufacturer after rival Boeing earlier announced Emirates had committed to buy 40 787-10 Dreamliners with a list price of $US15.1 billion.

The A380 deal is still likely to go ahead but it demonstrates that even the Dubai-based carrier, which recently took its 100th A380, is worried about the commitment by Airbus to keep building the big plane in the face of flagging sales.

Emirates President Tim Clark said the airline wanted a commitment that Airbus would keep producing the plane for a minimum of 10 years, although he said 15 would be preferable.

“I think the ownership here are concerned about continuation (of the A380),’’ Clark told Reuters. “They need some copper-bottom guarantees that if we do buy some more, then the line will be continued for a minimum period of years and that they are fully aware of the consequences of cancellation and leaving us high and dry.”

“Those assurances I am sure will come. Quite when, I don’t quite know.”

The A380 has proved a popular aircraft with passengers and operators still see an important role for it on  busy routes between  destinations where landing and take-off slots are at a premium

But the four-engine plane has faced stiff competition from new fuel-efficient twin jets and Airbus has been cutting the production rate.

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

Meanwhile, twin-aisle aircraft are forecast to continue to dominate aircraft investment by Middle Eastern carriers over the next two decades as they order 3350 new aircraft worth $US730 billion.

US manufacturer Boeing predicts twin-aisle aircraft will make up half of the new orders and, at an estimated cost of $US520 billion, comprise 70 per cent of the value.

“Traffic growth in the Middle East is expected to grow at 5.6 percent annually during the next 20 years,” Boeing Commercial Airplanes vice president Randy Tinseth said.

“The fact that 85 percent of the world’s population lives within an eight-hour flight of the Arabian Gulf, coupled with robust business models and investment in infrastructure, allows carriers in the Middle East to channel traffic through their hubs and offer one-stop service between many cities.”

The growth of low-cost carriers in the region is expected to fuel demand that will see 1770 single-aisle planes valued at $US190m.

Globally, Boeing predicts demand for 41,030 new airplanes, valued at $US6.1 trillion.

Emirates launches Mercedes-inspired first class suite

emirates new B777 first class
Emirates' new B777 first class. Photo: Emirates

Mercedez Benz is the latest weapon brought to bear in the battle for premium travelers as Emirates unveiled new, fully enclosed first-class suites and refreshed cabins for its Boeing 777s.

Hot on the heels of Singapore Airlines’ recent A380 reveal,  the Gulf carrier revealed a first class cabin that incorporates design features inspired by the Mercedes S-class car.

New aircraft featuring the cabins will enter commercial service on December 1, starting with flights to Geneva and Brussels.

The cabin offers 40 sq. ft of personal space and floor-to-ceiling sliding doors in a 1-1-1 layout.

Emirates B777 new first class
The suite offers full privacy. Photo: Emirates.

It is part of a multi-million-dollar refresh that sees new seat innovations and upgraded entertainment in all cabins.

It is a refresh Emirates president Tim Clark said was designed to “raise the bar and exceed our customers’ expectations’.

“Aside from our new fully enclosed private suites, business class features our latest fully-flat leather seats with personal minibars, economy class seats have adjustable full leather headrests, and the in-flight entertainment system has been upgraded for all cabin classes,’’ he said.

“Throughout the aircraft, our customers will see modern and airy cabins, with painstaking attention to detail evident in design touches such as the textured wall and ceiling panels, lighting features, and more.”

Sir Tim said the new first class suites marked the first time Emirates, which pioneered the first class suites concept in 2003,  had been so heavily influenced by another luxury brand. The S-Class cars will also now be used for the airline’s first-class chauffeur service in the UAE.

The Mercedes influence can be seen in soft leather seating, high-tech control panels, and mood lighting as well as a new color palette of soft greys, cream and champagne.

The latest Emirates 777 aircraft with these new features will enter commercial service on 1 December, making its debut on flights to Geneva and Brussels.

The seat reclines into a fully flat bed and can be placed in a “zero-gravity” position inspired by NASA and designed to give a feeling of relaxation and weightlessness.

Emirates first B777 first class
The “zero gravity” position. Photo: Emirates.

A new innovation is a “virtual window’’ for suites in the middle aisle which project the view from outside the aircraft using real-time camera technology.

Passengers communicate with the cabin crew, or request for room service using a video call function and the suites come with a service window so that drinks and canapes can be served without disturbing the occupants.

Storage includes a newly-designed overhead compartment and a full-length cupboard for hanging clothes.

Jeremy Clarkson advertises the Emirates First Class

The airline says it has retained and updated the most popular features of its private suites such as the personal mini bar and wireless controls to adjust seating positions.

The new suite was created in collaboration with Boeing, Rockwell Collins interior systems, Panasonic, Jacques Pierre Jean Design studio and Seattle-based design firm Teague.

In business class, a diamond cross-stitch pattern adorning the leather seats and an ergonomically designed headrest also take inspiration from the sports car.

The fully-flat seat has a generous 72-inch pitch as well as touchscreen controls, several personal lighting options, privacy panels between seats, a shoe storage area, footrest, and a personal mini-bar.

Biz class emirates
The Business class cabin.

Emirates in $US15bn deal for 40 Boeing 787-10s

Emirates Boeing 787-10 order

Boeing and Emirates have kicked off the Dubai Airshow with a surprise commitment for 40 787-10 Dreamliners and related equipment listing at $US15.1 billion.

Emirates, the world’s biggest operator of the Boeing 777 and launch customer for the 777X  in 2020,  said the  787-10 order brings its commitment for Boeing widebody aircraft to 204.

The order comes as profitability at the Emirates Group rebounded from last year’s low and saw the  Gulf company last week post a 77 per cent increase in its half-yearly result to $US631 million.

The airline group attributed the 2017-18 interim profit jump to a combination of capacity optimization and efficiency initiatives, steady business growth and a more favorable foreign exchange situation compared to the same period last year.

The biggest version of the B787 will be delivered to Emirates from 2022 and officials say it would take the airline into the 2030s.

Although the parties valued the deal at $US15.1bn, airlines never pay list prices and Emirates would have negotiated a significant discount for an order this size.

“Some of these will be replacements so that we maintain a young and efficient fleet, and others will power our future network growth. Emirates chief executive Sheikh Ahmed bin Saeed Al Maktoum said in a statement.

“We see the 787 as a great complement to our 777 and A380 fleet, providing us with more flexibility to serve a range of destinations as we develop our global route network.”

“It has always been Emirates’ strategy to invest in the most advanced and efficient aircraft, and today’s orders reflect that. Today’s announcement also speaks to our confidence in the future of aviation in the UAE and the region.”

Speculation about aircraft orders in Dubai had centered on a deal for up to 36 additional Airbus A380s. Emirates is also the biggest operator of the European superjumbo and recently took its 100th aircraft.

Asked on Sunday about another order during the show, Emirates president Tim Clark told reporters: “Watch this space”.

Still, the 787 deal will leave a sour taste at Airbus. Emirates in 2014 killed an order for 70 A350s valued at $US16bn in what was one of the industry’s biggest cancellations. It has  since been evaluating the competing aircraft types.

The 787-10 is a 5.5m stretch on the 787-9 and is designed to carry 330 passengers in a nominal two-class configuration.  It does not have the smaller plane’s range but it will be able to service most Emirates’ destinations with what Boeing describes as “unprecedented efficiency”.

“This is an airplane that will set a new benchmark for operating economics in the commercial aviation industry when it enters service next year,” said Boeing Commercial Airplanes president Kevin McAllister. “Emirates’ endorsement of the 787 Dreamliner extends our long-standing partnership and will sustain many jobs in the United States.”

The Emirates commitment pushes the total number of new 787 orders and commitments this year to more than 180 and boosts B787-10 orders and commitments to 210. The new plane will enter service next year with Singapore Airlines.

Despite initial setbacks, Boeing has delivered more than 600 787s since 2011 and estimates the type has flown more than 200 million passengers while saving over 19 billion pounds of fuel.

The Emirates order came as  Azerbaijan Airlines announced an order for five more 787-8 Dreamliners and a commitment to purchase two large freighters. The agreement is valued at about $US1.9 billion at current list prices.

Cost cuts, exchange rate help Emirates’ profit rebound 77 per cent.

A380
Passengers love the Emirates' A380 bar. Photo: Emirates

Profitability at the Emirates Group has rebounded from last year’s low as the Gulf company Thursday posted a 77 per cent increase in its half-yearly result to $US631 million.

The airline group attributed the 2017-18 interim profit jump to a combination of capacity optimization and efficiency initiatives, steady business growth and a more favorable foreign exchange situation compared to the same period last year.

Group revenue for the six months to September 30 was up 6 per cent to $US13.5 billion compared with the same period last year. Staff numbers fell 3 per cent due to attrition and a  slower recruitment rate.

Revenue at Emirates’ airline operations also increased by 6 per cent to $US12.1 billion as profit rose 111 per cent to $US452 million. Passenger numbers were up 4 per cent to 29.2 million.

Despite the encouraging results, chief executive Sheikh Ahmed bin Saeed Al Maktoum warned margins at the airline continued to face strong downward pressures from increased competition.

Sheik Ahmed said oil prices had also risen and the airline continued to face “uncertain political realties’’ in many parts of the world.  Brent crude oil prices rose through the $US60 per barrel mark during October and were 40 per cent higher than a year ago.

“Yet, the Group has improved revenue and profit performance,’’ he said. “This speaks to the resilience of our business model, and the agility of our people.

“The easing of the strong US dollar against other major currencies helped our profitability. We are also seeing the benefit from various initiatives across the company to enhance our capability and efficiency with new technologies and new ways of working.

“Moving forward, we will continue to keep a careful eye on costs while investing to grow our business and provide our customers with world-class products and services.”

Emirates took delivery of 10 wide-body aircraft in the first six months of the financial year  – four  Airbus A380s, and six  Boeing 777s — and has nine more to come before the end of the financial year. It also retired five older aircraft from its fleet with further four  to be returned by March 31.

Its  fleet stood at 264 aircraft, including freighters, at September 30, servicing a global network spanning  156 destinations in 84 countries.

Capacity as measured in available seat kilometres rose  by 3 per cent while revenue passenger kilometres rose by 5 per cent.

This saw the average load factor rise to 77.2 per cent compared with last year’s 75.3 per cent.

The airline said operating costs were up by 4 per cent while average fuel costs increased by 14 per cent, mainly due to the rise in oil prices.

Emirates is not alone in warning of second-half headwinds: Qantas and Singapore Airlines have also said they expect tough times to continue.

Nonetheless, the International Air Transport Association said initial financial data for the third quarter of 2017 indicated a healthy industry 16.3 per cent margin on earnings before interest and tax (EBIT), down only slightly on a year ago.

European carriers overtook their North American counterparts to post the widest profit margin as underlying industry-wide passenger yields remained stable after trending down between late 2014 and late 2016.

IATA attributed the rise in oil prices to signs OPEC-led production cuts could be extended until the end of 2018 and rising tensions between Saudi Arabia and Iran.

Air New Zealand urges Kiwis to prepare for bumper summer travel.

New Zealand
Photo: Steve Creedy.

Air New Zealand is urging Kiwi travellers to consider travel insurance and get to airports early as it muscles up for a bumper summer season.

The airline will operate 2.2 million domestic seats over the December-January peak — 90,000 more than last year. This includes 180 additional flights between December 21 and December 31 to get Christmas travellers to their destinations.

The busiest flying days are expected to be Thursday December 21 and Christmas Eve with passenger numbers peaking on Friday December 22.

AirNZ on that day will operate more than 45,000 seats across about 530 domestic flights.

The airline is urging domestic customers booked to travel during the peak period to look at taking out travel insurance. Domestic customers often don’t do this because a big-ticket item, medical cover, is not needed.

“Many of our customers have big plans for memorable summer holidays and our operational teams are absolutely geared up to get them to where they need to be, but every year events outside our control such as bad weather mean travellers’ plans go awry,’’ chief strategy networks and alliances officer Nick Judd said.

“Most customers don’t think twice about taking out insurance for overseas trips, but it’s a step that’s often forgotten for domestic journeys.  When the unexpected happens, the extra money paid to insure your journey could end up being money very well spent.

“The same goes for major sporting and concert events this summer.  For example, Air New Zealand is operating 60 extra one-way flights to get Ed Sheeran fans from Auckland to Dunedin in March 2018.

“We know that customers will have made a significant investment in show tickets, flights and accommodation.  So, considering taking out travel insurance for events like music concerts and sporting fixtures makes for good common sense.”

Judd also advised travellers to allow extra time to negotiate airports  during the peak season.

He noted Auckland Airport experienced serious congestion last summer.

While the airline was hoping the it wouldn’t be as bad this year, he said it was still wise for passengers to double-check itineraries and leave plenty of time to get to and through the airport.

Separately, AirNZ also announced it was the first airline to join the Climate Group’s EV100 initiative aimed at fast-tracking the uptake of electric vehicles.

READ: AirNZ tops the world’s best airlines for 2018.

The initiative by the global not-for-profit environmental group aims to encourage organisations to use their buying power and influence to build demand for electric vehicles and ultimately lower their cost.

AirNZ has converted its light vehicle fleet to electric vehicles as part of a commitment to cutting greenhouse gases and moving to environmentally sustainable operations.

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