Tuesday, July 10, 2018

Airbus introduces Bombardier C Series jet re-branded A220


A220 reveal in front of Airbus employees and members of the global news media
(Image: Airbus)

Airbus has just re-branded the Bombardier C Series jet acquired in a recent deal with the Canadian plane maker as the A220 and has already set “double-digit” and even “triple-digit” sales targets for the A220-100 and A220-300 models, formerly known as CS100 and CS300. The rebranding seals the takeover of the loss-making Montreal-based aircraft program with Bombardier and Investissement Québec that came into effect on July 1, 2018.

Airbus revealed the A220 at a ceremony held at the company’s headquarters operation, Henri-Ziegler Delivery Centre, near Toulouse, France. The A220-300 landed directly from the painting at 12:25 am CEST, July 10, 2018, at the Toulouse-Blagnac Airport (TLS) wearing its new Airbus name and livery. The European plane maker has hailed the introduction of the A220 Family, the latest member of Airbus’ single-aisle jetliner product line, as a “historic moment” for the company.

“Today, we are thrilled to welcome the A220 to the Airbus family and are honored to see it wearing its new Airbus colors for the first time,” said Guillaume Faury, Airbus President Commercial Aircraft, also thanking the staff at Bombardier and the supply chain who have worked on the aircraft over the past years. “The A220 now enters a new phase in its career with all Airbus’ resources behind it," Faury stated in an official press release on July 10, 2018.

The A220 family comprises two models, the A220-100 and the A220-300, formerly Bombardier’s C Series. The 110-seat CS100 will be known as A220-100 and the 130-seat model, formerly CS300, will now be known as A220-300. According to Airbus, the aircraft are fully optimized for the 100 to 150 seat market and will “perfectly complement” the plane maker’s existing best-selling A320neo family.

Airbus CEO Eric Schulz says his company is “enthusiastic” about selling the A220, considering its technology which should give the aircraft a decisive edge in a very competitive market. Shulz also expressed his “optimism” that Airbus will support to make the new A220 “a great commercial success."

In fact, Airbus has already set a target of at least 100 orders for the aircraft by the end of 2018 alone, as David Dufrenois, the program’s sales chief, was quoted saying at the unveiling ceremony in Toulouse by Bloomberg.

“I don’t think it will be very long before we see the first results on the market,” Airbus CEO was quoted as saying in a separate report by Reuters. Over the next 20 years, the European plane maker aims to reap a “triple-digit” level of sales of the jet. The company also expects a demand for a total of 7,000 jets in the A220 category over the same period, including Airbus‘ own A319.


(AeroTime News / Airbus Press Release)

Breaking News: Convair 340 crash in South Africa

A Convair 340 (ZS-BRV) painted in the colours of 'Martin Air Charter' crashed while apparently returning to Wonderboom Airport, Pretoria, South Africa on July 10, 2018, killing at least one person. Another 19 passengers/crew are said to have been injured.

The aircraft appears to have hit the roof of a shed and crashed on scrub covered ground in the Derdepoort area, some 6km east of Wonderboom Airport. One witness is reported to have said that he saw 'smoke trailing' from one of the aircraft's engines before it crashed. The accident happened in daylight and in VMC. It is understood that the aircraft had been 'donated' to the Aviodrome and was due to be ferried to Lelystad, Netherlands later in the week.

(FlightGlobal News)

Bamboo who? Vietnam start-up’s ever-shifting strategy

Vietnamese start-up Bamboo Airways’ commitment to 20 Boeing 787-9s represents a startling growth in ambition, but the prospective carrier’s strategy is far from clear.

Bamboo Airways is nothing if not ambitious. First announced by local property conglomerate FLC Group in early 2017, Bamboo Airways would initially serve Vietnam leisure destinations. Congested airports such as Ho Chi Minh City’s Tan Son Nhat and Hanoi’s Noi Bai would be avoided.

Early plans called for Bamboo to fly international passengers direct to secondary cities, addressing the clear market opportunity of flying North Asian tourists to Vietnam.

"With new flights connecting provinces with tourism potential, Bamboo Airways will not create additional pressure on overloaded airports, and will help fully exploit under-used infrastructure," said general manager Dang Tat Thang.

EARLY 2018 COMES…AND GOES…

A media report in early 2017 quoted FLC Group chairman Trinh Van Quyet as saying that the carrier would lease seven Airbus aircraft and start services in early 2018.

The early 2018 service start never happened, but in March 2018 a memorandum of understanding was signed with Airbus for 24 A321neos. This despite the carrier’s lack of approval to start services. Should all go well, it said it would even go for an additional 24 A321LRs.

In April, FLC revealed that it was recruiting for 92 pilots, 250 cabin crew, 90 technical staff, and nearly 100 administrative employees. It said that it wants to operate 40 routes by 2023, consisting of 24 domestic and 16 international destinations.

In the first two years of operation, the carrier said that it planned to operate between eight and 10 domestic routes. Internationally, China, Hong Kong, Japan, Singapore, South Korea, Taiwan and Thailand were identified as targets.

LATE 2018 START?

FLC added that it expected to start services at the end of 2018. Curiously, it said that it would only submit its official application for an air operator’s certificate in July. Why this hadn’t been done to ensure a launch in early 2018 wasn’t clear.

But, just in case anyone doubted its ambitions, Bamboo committed to 20 787-9s at the end of June. Apparently, it has even paid deposits to Boeing. The deal was announced in a Washington DC ceremony attended by no less than Vietnam’s deputy prime minister, Vuong Dinh Hue.

During all this there was little mention of the 2017 strategy of flying leisure passengers to secondary Vietnamese cities. The new plan, which presumably complements the 2017 leisure destination plan, calls for operating 787-9s from Ho Chi Minh City and Hanoi – Dang’s “overloaded airports” – to Europe and that holy grail of Vietnamese airlines, the USA.

Conventional airline thought would suggest that the 787s would provide feed in Hanoi and Ho Chi Minh City for the carrier’s fleet of A321neos, but again this would contradict the 2017 idea of avoiding big, congested hubs.

While the 787s are only due for delivery from 2020-2021, Bamboo apparently feels this is too late, and hopes to push this to 2019. The aircraft will have four classes: first, business, premium economy and economy.

During the June ceremony, incidentally, FLC chairman Trinh told FlightGlobal that the carrier continues to make progress toward a local AOC, and that he expected it soon. Just two months earlier, however, the carrier had said that the AOC application would only be made in July.

ORIGINAL THINKING: THE HANOI-HO CHI MINH CITY ROUTE

Anyway, Trinh added that Bamboo would launch sales in October 2018, with flights to begin in the fourth quarter. The airline's headquarters will be in the coastal city of Qui Nhon, which it plans to link with Hanoi in Bamboo's inaugural route. It also plans to begin flights between Hanoi and Ho Chi Minh City. This is one of Asia’s most competitive routes and in sharp contradiction to the 2017 plan to avoid hubs.

Irrespective of its strategy, several obstacles remain in Bamboo’s path: it is not a given that Vietnam will achieve FAA category 1 status, although there appears to be progress in this area. Despite apparently high-ranking connections, FLC also has yet to receive its local AOC. Other parties, including AirAsia and local MRO firm Aerostar, have tried for years to launch airlines, but to no avail.

Even if Bamboo gets off the ground, getting up to scale and becoming profitable competing against the likes of VietJet is far from easy.

POTENTIAL A380 CUSTOMER?

The carrier’s website adds little clarity. While it states that it hopes for a late 2018 launch, it acknowledges the regulatory challenges.

Aviation enthusiasts, however, will enjoy the site’s casual use of pictures. On one page is an artist’s depiction of a pure white A380 taking off. The caption reads “Bamboo Airways will take off at the end of 2018.” Another page has a 747-400 landing at dusk. The caption reads “No one knows when Bamboo Airways can take off.”

The two pages could well have been posted at different times, but this is not clear.

The site also makes much of the carrier’s plans to avoid Vietnam’s big hubs – although recently it seems company leadership has changed tack on this.

For the time being, Flight Fleets Analyzer shows that Bamboo Airways has LOIs to order for 24 A321s and 20 787-9s. Airbus and Boeing will, of course, hope these are firmed up. The upstart unit of FLC Group has made headlines, but it remains to be seen if Bamboo’s strategy, or lack of one, will deliver a success story.


(Greg Waldron - FlightGlobal News)

Monday, July 9, 2018

Saudi Arabian Airlines in Boeing 777X order talks

Saudi Arabian Airlines is exploring a potential order for Boeing 777X wide-body jets, according to three sources familiar with the matter.

It was not immediately clear when Saudi Arabia's state-owned airline, also known as Saudia, could reach a deal or how many 777X jets it is interested in.

Saudia and Boeing declined to comment.

The airline's director-general Saleh bin Nasser al-Jasser told Reuters last November that a wide-body jet order would be considered in 2018.

A potential Saudia order could alleviate production pressure for Boeing which is now unlikely to sell 80 jets that IranAir ordered before the United States withdrew from a nuclear deal with Iran and said it would reimpose sanctions on Tehran.

Saudi Arabia, a longtime U.S. ally, welcomed U.S. President Donald Trump's decision to pull out of the agreement that had reopened global trade with Tehran in exchange for curbs on its nuclear activities.

Companies from Saudi Arabia and the United States have signed business deals worth tens of billions of dollars since Trump took office in 2017.

The discussions also come at a time when doubts have been expressed about the solidity of existing 777X orders from the Gulf, particularly from Abu Dhabi's Etihad Airways which is restructuring after accumulating $3.5 billion in losses in the past two years.

The 777X is an upgrade to Boeing's successful mini-jumbo series. The 406-seat 777-9 is due to enter service in 2020.

Saudia operates a mixed fleet of 148 Airbus and Boeing aircraft, including 777 twin-engined jets, according to its website.

Saudia has been restructuring since 2015, divesting from non-core businesses with the plan of returning to profitability by 2020.


(Alexander Cornwell and Tim Hepher - Reuters) 

Are composite airframes feasible for narrowbodies?

Boeing and Airbus has been building aluminum aircraft for decades when they switched to composite designs for their respective 787 and A350 programs. Whether that material change can be replicated for next-generation medium-haul aircraft, however, is unclear.

Long-haul aircraft are being produced at comparatively low rates. Out of 763 aircraft that Boeing delivered in 2017, the 737 family accounted for 529, or 72%. The US manufacturer handed over 136 Dreamliners (18%), with the rest of the deliveries split between the 777 (74 units), 747 (14) and 767 (10).

Boeing's two 787 final assembly lines in Seattle and North Charleston together produced, on average, 11 aircraft per month. That rate is to be increased to 14 Dreamliners – or 168 per year – from 2019.

Airbus delivered a total of 718 aircraft in 2017. The A320 family accounted for 558 (78%), with an average monthly output of 47. The European airframer meanwhile delivered 78 A350s, 67 A330s and 15 A380s last year. In May 2018, finance chief Harald Wilhelm said the manufacturer had achieved a target of producing 10 A350s a month.

The difference in volume indicates the scale of change that Airbus and Boeing would face if they were to adopt a composite airframe for a single-aisle aircraft – especially as the two manufacturers have plans to further increase narrow-body production.

Jose Sanchez, executive expert in composites at Airbus, confirms to FlightGlobal that there are no technical obstacles to building a single-aisle type with a composite airframe. The predominant composite material employed across the industry for large primary structures is carbonfibre pre-impregnated with resin (pre-preg). The carbonfibre is laid up in layers and assumes its final form through curing, under pressure and temperature, in an autoclave, and is thus categorised as a thermoset material.

COST REDUCTION

Sanchez says that in-service experience with the material – which has been used for structures like empennages for decades – is "absolutely fantastic". But he acknowledges that simply expanding production capacity will not be enough to enable adoption of a mainly composite airframe for high-volume programs, and that further development is required to make composite aerostructures manufacturing more economical.

"We are making some effort to further reduce the manufacturing costs [and] improve the productivity of the production," he says. Efforts are focused on reducing raw material costs which Sanchez describes as "far higher" than for aluminium, and on improving production processes. "With today's technology, we can manage. But we have to make a strong effort to reduce the costs," he says.

Miguel Castillo Acero, vice-president of technology development at Spanish aerostructures specialist Aernnova, estimates that the costs of producing composite aerostructures are 40-100% higher than for comparable metal components, depending on part complexity.

This is especially relevant to single-aisle aircraft, where profit margins tend to be slimmer than for long-haul jets.

Triumph Aerospace Structures vice-president of engineering Martin Perya thinks it would be "extremely difficult, if not impossible" to adopt a composite airframe for a single-aisle aircraft with today's carbonfibre technology. He says "high level" investment would be required to scale up production capacity with facilities featuring autoclaves, clean rooms and cold storage spaces, and that such infrastructure is "largely impractical for higher-volume production".

Perry notes that autoclave processing is "the single most cycle-time-affecting process in the value chain". He adds: "The economic viability [of potential capacity expansion] is very wearisome as the investment required would be significant and return on that investment is somewhat risky." He believes a "different approach" is needed as "there is a kind of limit that I think the industry is... hitting right now with that thermoset technology".

For today's carbonfibre structures, autoclave curing is necessary as "high pressure and high temperature... assure us of the quality and mechanical properties of the composite material", says Castillo Acero. "If we avoid the autoclave, [any alternative] process has to be robust enough to achieve acceptable... mechanical properties."

Castillo Acero does not suggest a complete departure from thermosets, but thinks the proportion of components requiring autoclave treatment might have to be reduced and more equipment cured via alternative methods. Out-of-autoclave curing is used for a limited range of parts today.

Meanwhile, manufacturers are exploring ways to improve current composite aerostructures' production and inspection. While much of the carbonfibre lay-up process has already been automated, the use of pre-preg stock has limits in terms of how much material can be deposited at a time. Suppliers are looking at ways of depositing dry fibres and separately adding resin, for example, through infusion or insertion of resin sheets between fibre layers.

Increased automation is another avenue to raise productivity in the short term. Today, manual work characterises much of the raw material handling and lay-up preparations, autoclave operations, and component rework and inspections after curing, notes Castillo Acero.

THERMOPLASTICS

In the longer term, he foresees a step change in productivity with a shift towards greater use of thermoplastics. This material can be cured – in ovens or in heated press-moulding tools – within minutes, rather than the hours typically needed for thermosets in autoclaves.

Furthermore, thermoplastics tend to be more impact-resistant than thermosets. Additionally, it is possible to melt resin in thermoplastics through heat and weld components together with a structurally reliable joint, which could facilitate weight savings in larger assemblies.

GKN Aerospace, through its Dutch aerostructures division formerly known as Fokker Technologies, supplies thermoplastic leading-edge parts for the A380 and control surfaces for Gulfstream G650 business jets. Russ Dunn, GKN's senior vice-president for engineering, technology and quality, says thermoplastics have traditionally been used for lighter-loaded structures, while thermosets are suitable for large, complex primary structures, as they can be optimized for high static strength.

However, GKN is exploring the use of thermoplastics for "major structural components" – including fuselage skins, empennages and wing components – and is making "very good progress", says Dunn.

Perya describes thermoplastics as "almost the holy grail" of aerospace materials. Looking back at how employment of thermosets has grown over past decades, he expresses surprise that the aerospace industry did not concentrate earlier on opportunities offered by thermoplastics. He thinks the manufacturers were slow to adopt the material after they had spent time and effort on development of thermoset composites.

"You had such a huge investment, they [manufacturers] were trying to get a return on that investment and the time to get everybody comfortable [with using] thermosets," Perya says. But in order to achieve the "next big step" in lowering costs and raising productivity, he says: "We need to move away from that technology to thermoplastic-type technologies."

As Boeing evaluates options for its proposed New Mid-market Airplane (NMA), it is arguably under greater pressure than rival Airbus to decide whether to adopt a composite design for an all-new aircraft. Marketing vice-president Randy Tinseth said in March that the airframer would use on the NMA "proven and understood" technologies rather than radical new ones, and that the manufacturer plans "no big technology push as we saw on [the] 787".

While the NMA is an exploratory project that has yet to be launched, Boeing has discussed its vision of service entry circa 2025. The company declined to comment for this article.

If Boeing or Airbus were to switch to a composite design for a next-generation single-aisle aircraft, manufacturers would need to establish a new industrial production system that is capable of accommodating the huge output of today's 737 and A320 assembly lines, which have been established over several decades and have grown their production gradually over that time. This might be a bigger technological and industrial challenge than the previous shift from metal aircraft to composite designs for the 787 and A350.

While the two twin-jets represent Boeing and Airbus's latest technology, Dunn thinks the aerospace industry is still on a "journey of learning" and has not yet utilized the "full potential of composite structures". He foresees that improvements in the deposition of composite material will deliver efficiencies in the manufacturing process and aircraft design.

"The better control we can get of our manufacturing processes and our inspection technologies, the more conservationism we can remove and... the more cost-effective the products will be," he says, adding: "My view is that a bigger journey is left to be done, and there is more opportunity for improvement on the next generation of composite aircraft."

But he notes: "For every improvement that is made on the composites side, there is work ongoing on the metallic side... Whether [composites] will make the better business case than the alternative [for a future single-aisle aircraft] depends on how quickly and how strongly the opportunities on the metallic side come through."


(Michael Gubisch - FlightGlobal News)

Sunday, July 8, 2018

Hawaiian Airlines Airbus A321-271N (c/n 8129) N212HA "WiliWili"

 
 
Taxies to then departs from Rwy 30 at Long Beach Airport (LGB/KLGB) bound for Honolulu - Daniel K Inouye International Airport (HNL/PHNL) on July 6, 2018.

(Photos by Michael Carter)

Gulfstream G650 (c/n 6317) N617GA tbr VP-CPU

Captured departing from and returning to Rwy 30 at Long Beach Airport (LGB/KLGB) following her first post paint-out and interior installation flight on June 18, 2018. 

(Photos by Michael Carter)

Gulfstream G650(ER) (c/n 6025) N988HK, ex-VP-CZZ

Taxies to then departs from Rwy 30 at Long Beach Airport (LGB/KLGB) on June 28, 2018.

(Photos by Michael Carter)

Gulfstream G650 (c/n 6274) N136ZC

 
Arrives at Long Beach Airport (LGB/KLGB) on June 25, 2018.

(Photos by Michael Carter)

Gulfstream G650(ER) (c/n 6249) N666FH


This lovely aircraft is captured arriving at Long Beach Airport (LGB/KLGB) following a flight from Fairbanks International Airport (FAI/PAFA) on June 20, 2018.

(Photos by Michael Carter)

Gulfstream G650 (c/n 6316) N898S


Taxies to then departs from Rwy 30 at Long Beach Airport (LGB/KLGB) bound for Boise Air Terminal / Gowen Field (BOI/KBOI) on her delivery flight, June 27, 2018.

(Photos by Michael Carter)

Gulfstream G650 (c/n 6339) N639GA

"GLF94" arrives at Long Beach Airport (LGB/KLGB) from the factory at Savannah-Hilton Head International Airport (SAV/KSAV) on June 30, 2018.

(Photos by Michael Carter)

Southwest Airlines Boeing 737-8Max (42370/6594) N8715Q

 
The first scheduled -8Max flight for the carrier at Long Beach Airport (LGB/KLGB) arrives on then departs from Rwy 30 on June 30, 2018.

(Photos by Michael Carter)

Southwest Airlines Boeing 737-7H4(WL) (36671/3603) N955WN "Arizona One"

Arrives at then departs from Long Beach Airport (LGB/KLGB) on June 30, 2018 as we enjoy an absolutely gorgeous afternoon in Southern California.

(Photos by Michael Carter)

Air Tanzania Boeing 787-8 (64249/719) 5H-TCG "Kilimanjaro Hapa Kazi Tu"

Air Tanzania took delivery of its first Boeing 787-8 today, (July 7, 2018) seen here departing Seattle-Boeing Field (BFI/KBFI) on her delivery flight.

(Photo Courtesy of Joe G. Walker)

Thursday, July 5, 2018

Gulfstream G650 (c/n 6313) N667HS, ex-N613GD

This lovely G650 is owned by Henry and Susan Samueli owners of the NHL Anaheim Ducks and is captured departing Long Beach Airport (LGB/KLGB) this morning, July 5, 2018.

(Photos by Michael Carter)

Wednesday, July 4, 2018

Bamboo Airways Orders 20 Boeing 787 Dreamliners Worth $5.6B

(Boeing)

Boeing and Bamboo Airways announced a commitment for 20 787-9 Dreamliners in deal that would be worth $5.6B at current list prices, when finalized.

The announcement was made during a signing ceremony at the U.S. Chamber of Commerce office, witnessed by Vuong Dinh Hue, deputy prime minister of Vietnam, and Nazak Nikakhtar, Assistant Secretary for Industry and Analysis, U.S. Department of Commerce, International Trade Administration.

As part of the agreement, Bamboo Airways completed the deposit requirement in mid-June to reserve the 20 airplanes, which are tentatively schedule to deliver from April 2020 through 2021.

“We are excited to introduce these new 787 Dreamliners into our fleet as we prepare to launch long-haul operations to international markets,” said Mr. Trinh Van Quyet, Chairman of FLC Group, 100% owner of Bamboo Airways.

“Our long-term vision is to connect Vietnam to key markets within Asia, Europe and North America and the capabilities of these new state-of-the-art Dreamliners will help us achieve our goals. The 787’s superior economics and efficiency, as well as the passenger pleasing interior of the Dreamliner will allow us to successfully grow our business while enabling us to better serve our customers.”

“We are delighted to welcome Bamboo Airways to the Boeing family and we look forward to Bamboo joining the growing group of global airlines that fly the 787 Dreamliner,” said Mr Dinesh Keskar, senior vice president of Asia Pacific and India Sales, Boeing Commercial Airplanes. “We are confident that the 787 will help launch Bamboo’s long-haul operations and serve as the foundation of their success for many years to come.”


(Aviation Voice)

Cuban flagship airline's woes deepen after crash

Cuba' state-owned airline Cubana airplanes are seen parked at the Havana's International Airport in Havana. 
(Photo: Thomson / Reuters)

In the busy summer travel period in Cuba, a long line of people wait for hours in the sweltering heat outside the Havana office of state-owned airline Cubana, many of them eager to visit families in the provinces.

But they are not waiting to book flights. Instead, they hope to get their money back on plane tickets or exchange them for bus tickets across the island.

Cubana, which has a virtual monopoly on domestic flights, has suspended nearly all of them due to a lack of working aircraft, plunging travel on the Caribbean's largest island into chaos and highlighting problems at what was once a vanguard of Latin American aviation.

The flight suspensions were made a month after a Cubana flight crashed after takeoff from Havana airport in May, killing 112 people. They come at a time when Communist-run Cuba is trying to stimulate tourism, one of the few bright spots in its economy, by promoting beach resorts and colonial towns hundreds of kilometers (miles) from the capital.

"Now I will have to take a 16-hour bus-ride to Guantanamo but what other options do I have?," said kindergarten teacher Marlene Mendoza, who was bathed in sweat and got a bus ticket to eastern Cuba after queuing for more than seven hours.

Analysts say Cubana's troubles stem largely from dual ills that afflict the whole state-run economy: the U.S. trade embargo and a problematic business model.

Cubana did not reply to requests for comment for this story.Founded in 1929 as one of Latin America's first airlines, Cubana was nationalized after Fidel Castro's leftist 1959 revolution. In its heyday, it flew Cuban troops to Africa and passengers to allied socialist countries around the globe.

For decades it got around U.S. sanctions that restricted it from buying planes with a certain share of U.S. components - including European Airbus and Brazilian Embraers - by acquiring first Soviet and then Russian aircraft.

The carrier maintained a decent safety record but its reputation for mediocre service and delays prompted many foreign tourists to use mostly land transport. Then, over the past year, it started canceling more flights than usual, often putting passengers up in hotels for days, without commenting publicly on the disarray.After the Boeing 737 crashed on May 18, Cubana said it had leased the plane from Mexican company Damojh due to a lack of its own aircraft. A second Damojh plane has been grounded pending a safety audit of its fleet by Mexican authorities, data from Flightradar24 shows, aggravating the shortage.

Cuban, Mexican and U.S. authorities are still investigating the crash and have not commented on possible causes. Damojh has said in a press release that is fully cooperating with those investigations into the "lamentable accident."

Just four of Cubana's own 16 planes are flying, according to a Reuters examination of data on Flightradar24 and Planespotters.net.

NOT FLYING HIGH

Over the past month, the airline announced it was axing several routes mainly used by Cubans and reducing the frequency of flights to Santiago, Holguin and Baracoa, all popular tourist destinations. In a statement, it said it was working to resolve the situation and apologized for the disruption.

Cubana also suspended all international routes except to Buenos Aires and Madrid, several staff told Reuters. The company did not comment publicly, leaving would-be travelers sharing their confusion on online forums.

"It has lost a lot of prestige. It's already not the famous Cubana that used to fly to all parts of the world," said one former employee, who asked to remain anonymous, who retired 6-1/2 years ago after working for Cubana for 40 years."Anywhere else in the world, a company like Cubana would have folded."

Cubana said in mid-June it did not have enough aircraft largely because of maintenance issues and lack of parts, which aviation experts say can cost millions of dollars.

The airline sells tickets to Cuban citizens at heavily subsidized prices. Its budget is also stretched by ferrying official delegations around sometimes at a financial loss, a former Cuban diplomat familiar with Cubana operations said.

Cash-strapped Cuba points the finger at the 56-year-old U.S. trade embargo, saying it has cost its flagship carrier millions of dollars.

The coup de grace was possibly the purchase of six An-158 regional jets from Ukrainian manufacturer Antonov since 2013.

Cubana has said those planes have had technical problems and getting parts for the joint Russian-Ukrainian project has proven difficult since Russia's annexation of Crimea in 2014.

An Antonov representative told Reuters Cubana had not been paying for the necessary work but it had signed a deal in April with the airline to cooperate "to resume the use of AN-158 planes before the end of the current year."Typically, airlines lease planes when theirs are undergoing maintenance or there is a spike in demand, but the U.S. embargo and financial constraints likely complicate this for Cuba, said Richard Aboulafia, vice president of U.S. aviation consulting company the Teal Group.In May, Lithuanian lessor Avion Express and Italian lessor Blue Panorama both ended their contracts with Cubana, the companies told Reuters, without explaining why. Data from Flightradar24 shows they withdrew respectively four Airbus A320s and one Boeing 737. That is around the time when Cubana turned to the little-known Damojh, leasing the 39-year-old Boeing 737.

Damojh has faced safety concerns in other countries in the region. Guyana's aviation authority told Reuters it had revoked Damojh's permit to fly there last year due to issues such as overloading planes. The airline declined to comment on the matter.

The crash in May has undermined trust in Cubana."I like to travel by plane.It'ster and more comfortable," said Maylín López, 48, waiting at Havana's bus station for her 15-hour ride to eastern Cuba. "But I can't even imagine doing that now." 


(Sarah Marsh and Nelson Acosta - Reuters)

Tuesday, July 3, 2018

AirAsia X looking further into Airbus A330neo to 'finally confirm' order - co-group CEO

AirAsia X needs to ensure the price, performance and engines of the Airbus A330neo are right before it will "finally confirm" its order for 66 of the jets, its co-group chief executive said on Tuesday.

AirAsia X, the long-haul arm of Malaysian low-cost carrier AirAsia Group, is the largest customer for the A330neo, which is struggling for sales relative to the rival Boeing 787.

AirAsia X has a firm order for the fuel-efficient A330neo wide-body jets to replace its older first-generation A330s but it has been pushing back the delivery dates.

It has been talking to Boeing about buying the 787-10 jet as an alternative and is likely to make a decision later this year, a person familiar with the discussions previously told Reuters.

The airline's CEO, Tony Fernandes, on Tuesday said on Twitter that he was visiting Airbus at its Toulouse headquarters to discuss the A330neo as well as the smaller A321neo.

"We have ordered the 330 but to finally confirm it we must make sure price is right. Performance is right. Engine is right," he said. "And performance of the 330 251 tonne is right. If right (it is) the plane we dreamt of and fought for and then we can order more. Or else."

The 251 tonne version, which could fly non-stop from Kuala Lumpur to London, is a heavier version of the jet and has more range but will not be available for delivery until 2020.

Fernandes added that he believed the A321neo, a large narrow-body jet, was a "great plane" and raised the prospect of ordering more. He is also the CEO of AirAsia, which has 100 A321neos on order.


(Jamie Freed - Reuters)

Monday, July 2, 2018

With Southwest Airlines Coming to Hawaii, Alaska Air and Hawaiian Airlines Strike First

Two of the top airlines in the West Coast-Hawaii market are expanding preemptively before Southwest Airlines starts flying to Hawaii.

Last fall, Southwest Airlines announced plans to start flying to Hawaii. At the time, the carrier still faced the somewhat daunting task of receiving FAA approval to operate long over-water flights. However, it stated that ticket sales would begin in 2018, with flights likely to begin in late 2018 or early 2019.

Midway through 2018, Southwest Airlines still hasn't published any schedules for flights to Hawaii. Nevertheless, it has released a steady trickle of information about its plans over the past six months. This included an announcement in early May that it will initially fly to Hawaii from four cities in California: Oakland, Sacramento, San Diego, and San Jose.

Hawaiian Holdings and Alaska Air are currently the only two airlines flying nonstop to Hawaii from those cities. Both carriers are fighting back against Southwest's looming arrival in the market by expanding preemptively.

Hawaiian Airlines continues its West Coast expansion

In late 2017, Hawaiian Airlines received its first of 18 Airbus A321neo aircraft. For the past several years, Hawaiian's management team has been eager to add the 189-seat A321neo. It is significantly smaller and more fuel efficient than the wide-body aircraft that Hawaiian has historically used for its West Coast-Hawaii flights, enabling the carrier to fly less-busy routes.

Hawaiian Airlines had already unveiled several new routes to be flown with the A321neo prior to Southwest's Hawaii announcement. It has continued to announce new routes since then.

Last December -- before Southwest Airlines had revealed which cities would be its gateways for Hawaii flights -- Hawaiian Airlines introduced a new route connecting San Diego to Maui. At the same time, it also announced a daily seasonal summer flight between Oakland and Kona, although delays in its aircraft delivery schedule forced it to cancel that route for 2018.

Unfazed by Southwest's expansion plans, Hawaiian Airlines announced last week that it will begin a new daily route between Sacramento and Maui in April 2019. This will complement its existing daily Sacramento-Honolulu route.

Alaska Airlines isn't backing down, either

Hawaiian Airlines' decision to add a second route from Sacramento to Hawaii came a little more than a week after Alaska Airlines announced that it will add a new Sacramento-Hawaii route later this year. Alaska already offers daily flights between Sacramento and Maui, and it will begin flying from Sacramento to Kona three times a week in late December.

In theory, Alaska Airlines could have chosen to reallocate some Hawaii flying to other markets in response to Southwest's entry into the West Coast-Hawaii market. However, Alaska Air CEO Brad Tilden has indicated that the carrier will fight to maintain its market share. Indeed, Hawaii flights have become an important part of Alaska's business, and the carrier claims to operate more West Coast-Hawaii flights than any other airline.

Avoiding a capacity vacuum

Based on their new route announcements since last December, Hawaiian Airlines and Alaska Airlines are not flooding the West Coast-Hawaii market with capacity. Instead, they are putting capacity into underserved markets, rather than leaving a vacuum that Southwest Airlines would gladly fill.

For example, Hawaiian Airlines and Alaska Airlines each operate one daily Sacramento-Hawaii flight today, serving Honolulu and Maui, respectively. Through the first five months of 2018, they offered a combined 63,118 seats to Hawaii from Sacramento. By contrast, airlines offered nearly three times as many seats to Hawaii from Portland, Oregon, which has a slightly larger metro area population.

Meanwhile, Portland had about 50% more seats to Hawaii in the first five months of 2018 than San Diego, even though its metro area population is 30% lower.

Thus. some of Southwest Airlines' gateway cities for Hawaii service seem to have fewer flights to Hawaii than they could support. Preemptive capacity additions in those markets won't stop Southwest from introducing its own competing flights over the next year or two. However, by better serving the existing demand, Hawaiian Airlines and Alaska Airlines may be able to protect their West Coast-Hawaii franchises by pushing Southwest Airlines to start smaller in Hawaii.


(Adam Levine-Weinberg - The Motley Fool)