DTN News: Boeing, Qatar Airways Launch New 777 Performance Improvement Package

DTN News: Boeing, Qatar Airways Launch New 777 Performance Improvement Package

*Airlines News: Boeing services offering provides airline options to open new routes, improve fuel efficiency, increase payload capabilities

Source: K. V. Seth - DTN News + Boeing

(NSI News Source Info) TORONTO, Canada  {FARNBOROUGH, United Kingdom)- July 12, 2016: Boeing [NYSE: BA] and Qatar Airways announced today at the 2016 Farnborough International Airshow the launch of a new Performance Improvement Package.

Qatar Airways is the first customer in the world to take advantage of the new modification offering, a reflection of its focus on providing a superior product to its customers.

"Qatar Airways operates one of the world's youngest and most technologically advanced fleets, and we are always seeking ways to grow our operational advantage," said His Excellency Akbar Al Baker, Qatar Airways Group Chief Executive. 

"We appreciate Boeing's continued efforts to improve the value and efficiency of our existing airplanes, allowing us to stand out in the marketplace and keep our fleet at the forefront of global aircraft performance capabilities."

Through design improvements, Boeing's retrofittable Performance Improvement Package allows airlines to open new routes, fly existing routes more efficiently and improve payload capacity and range. Qatar Airways, as the launch customer for the offering, will be upgrading its entire fleet of 53 777s.

"Boeing never stops evaluating means of improving our already highly efficient and reliable aircraft," said Stan Deal, senior vice president, Boeing Commercial Aviation Services. "With our Performance Improvement Package, we're helping our customers obtain even greater performance from the market leading 777 family of aircraft."

Doha-based Qatar Airways is the state-owned flag carrier of Qatar. The airline currently operates a fleet of 34 Boeing 777-300ERs and nine 777-200LRs, in addition to 10 777 Freighters, linking over 150 international destinations across the globe.

Boeing is a leader in providing 24/7 support and service to the global aviation industry. In addition to retrofits and modifications, Boeing offers the industry's largest portfolio of services including aftermarket parts, subscription-based maintenance programs, engineering support, crew training, route planning, digital crew scheduling, advanced data analytics and software to enhance airlines and leasing company operations.

Contact:

Cynthia Reynaud
Boeing Commercial Airplanes Communications
+1 206-661-2632

cynthia.l.reynaud@boeing.com


*Link for This article compiled by K. V. Seth + Boeing
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DTN News - BOEING NEWS: Few customers For Boeing 747 Despite Upgrade

Defense News: DTN News - BOEING NEWS: Few customers For Boeing 747 Despite Upgrade

Source: DTN News - - This article compiled by K. V. Seth from reliable sources By Julie Johnsson and Andrea Rothman
(NSI News Source Info) TORONTO, Canada - June 4, 2014: (CHICAGO) — Boeing’s iconic 747 jumbo jet is gliding deeper into its twilight years, with a new Air Force One fleet offering the strongest sales prospect for a passenger model that no longer fits most airlines’ needs.

Even as Boeing talks with Emirates airline about an order for the upgraded 747-8, the carrier played down the chances of a deal because it’s buying 150 Boeing 777X jets. That plane will be bigger and more efficient than the current 777, a twin-engine aircraft so capable that it’s cannibalizing Boeing’s jumbo sales.

Commercial success has proved elusive for the 747-8, the latest update to an almost 50-year-old plane known for its distinctive humpbacked fuselage. While the 747-8 is a lock to win bidding that opens this year to replace the president’s fleet, waning demand for the cargo variant further imperils an assembly line that has slowed to just one or two planes a month.

‘‘Air Force One is it, unless a miracle happens in the airfreight business,’’ said Glen Langdon, president of Langdon Asset Management, a San Francisco firm that has extensive experience selling used 747s and other wide-body freighters.

Discussions with Emirates were disclosed this week by John Wojick, senior vice president for sales and marketing at Chicago-based Boeing’s commercial airplane unit, at the annual meeting of the International Air Transport Association in Doha. Emirates is the world’s largest international airline and it operates a fleet of A380s from rival Airbus Group.

Boeing is fighting to land customers, even using trade-ins of older models to seal deals. Boeing faces a ‘‘material’’ accounting loss if it can’t win sufficient 747 orders to recover the costs of development, according to a company filing. So far, Boeing has tallied just 51 sales for the passenger variant, known as the 747-8I or Intercontinental, since Deutsche Lufthansa AG placed the first order in 2006.

This year’s 747-8 order count: one. It wasn’t always so grim. Pan American World Airways announced a $525 million order for 25 of the first 747s in 1966, effectively launching a program that would go on to produce almost 1,500 planes.

But Boeing outdid itself with the 777-9X, the first twin-engine jet designed to carry a jumbo’s haul of 407 passengers. Meanwhile, a glut of the previous 747 iteration remain parked, and Boeing cut 747 production twice last year, to 18 jets a year, as the backlog dwindled.

‘‘We expect 747-8 sales to increase with the economy, and customers flying the airplane tell us they love its strong performance,’’ Randy Tinseth, a Boeing vice-president for marketing, said in an e-mail. ‘‘That’s why we continue to invest in the 747-8, to make it even better.’’

The 747-8’s likeliest sales are to the Pentagon. The Air Force is planning to upgrade the all-747 presidential aircraft fleet by 2023 and has also begun studying whether to replace the ‘‘Doomsday’’ fleet, four 747-200 jets hardened against nuclear blasts that provide a mobile military command, Charles Gulick, an Air Force spokesman, said in an e-mail.

The White House’s fiscal year 2015 budget proposes spending $1.65 billion over five years to replace its aging Air Force One fleet, which began ferrying President George H.W. Bush in August 1990.

*Link for This article compiled by K. V. Seth from reliable sources By Julie Johnsson and Andrea Rothman
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DTN News - AIRLINE NEWS: Boeing And Air Lease Corporation Announce Order For 75 737 MAXs

Defense News: DTN News - AIRLINE NEWS: Boeing And Air Lease Corporation Announce Order For 75 737 MAXs
- Order helps establish the 737 MAX in the leasing market
- Reconfirmation rights for 25 more 737 MAX airplanes

Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada - July 9, 2012: Boeing (NYSE: BA) and Air Lease Corporation (NYSE: AL) announced today a firm order for 60 737 MAX 8 and 15 737 MAX 9 airplanes, with reconfirmation rights for 25 additional 737 MAXs. The order, with a list-price value of $7.2 billion, represents the first 737 MAX order by a leasing company.

"The 737 MAX is an excellent addition to our portfolio and the ideal complement to our growing fleet of Next-Generation 737-800s," said Steven Udvar-Hazy, chairman and CEO of Air Lease Corporation. "The 737 MAX represents a step-change improvement that our airline clients need to compete in the future."

The 737 MAX is a new-engine variant of the world's best selling airplane and builds on the strengths of today's Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

Airlines operating the 737 MAX will see a 13 percent fuel burn improvement over today's most fuel efficient single-aisle airplanes and an eight percent operating cost per seat advantage over tomorrow's competition.

"This 737 MAX order continues ALC's disciplined approach to building its young, fuel-efficient fleet," said Boeing Commercial Airplanes President and CEO Ray Conner. "The ALC leadership team has an excellent record of placing Boeing airplanes with airlines worldwide. They are an ideal partner to help establish the 737 MAX in the leasing market."

The ALC order builds on the continued market success of the 737 MAX. To date, the 737 MAX has orders and commitments for more than 1,000 airplanes.

ALC has ordered a total of 170 airplanes from Boeing including 75 737 MAX, 78 Next-Generation 737-800s, five 777-300ERs (Extended Range) and 12 787-9 Dreamliners.

About Air Lease Corporation (NYSE: AL)

ALC is an aircraft leasing company based in Los Angeles, California, that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline partners worldwide through customized aircraft leasing and financing solutions. For more information, visit ALC's website atwww.airleasecorp.com.

Contact:
Tim Bader
North America and Leasing Communications
            +1 425-717-0672      
Tim.s.bader@boeing.com

www.boeing.com

More information: http://www.boeing.com/newairplane//737max/

Photo and caption are available here: http://boeing.mediaroom.com

SOURCE Boeing

*Link for This article compiled by Roger Smith from reliable sources Boeing
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DTN News - AIRLINES NEWS: Korean Air's 737-900ER Lands At Farnborough To Showcase New Boeing Sky Interior

Defense News: DTN News - AIRLINES NEWS: Korean Air's 737-900ER Lands At Farnborough To Showcase New Boeing Sky Interior

Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada - FARNBOROUGH, United Kingdom, July 9, 2012: A Korean Air Next-Generation 737-900ER (Extended Range), featuring Boeing's innovative Sky Interior, was the second Boeing [NYSE: BA] airplane to arrive at this year's Farnborough International Airshow.

"We are proud to partner with industry-leading Korean Air to show off their 737-900ER here at the 2012 Farnborough International Airshow," said Beverly Wyse, vice present and general manager of the 737 program, Boeing Commercial Airplanes.
 "Boeing takes great pride in knowing Korean Air is using the Sky Interior to deliver a more comfortable travel experience for its customers."

"The 737 Boeing Sky Interior is helping airlines like Korean Air to differentiate themselves from their competitors," Wyse said. 
"Passengers instantly see and feel the difference." Those differences include sculpted sidewalls and window reveals, LED lighting, larger stow bins and more intuitive placement of attendant call and light buttons.

Korean Air currently operates four 737-900ERs as well as a combination of 34 737-800s and -900s in its single-aisle fleet. The airline's fleet consists of 87 Boeing commercial jetliners. Korean Air took delivery of this airplane in May 2012.

The 737-900ER, which was called the 737-900X prior to launch, is the newest addition and the largest variant of the Boeing 737 line and was introduced to meet the range and passenger capacity of the discontinued 757-200 and to directly compete with the Airbus A321.

An additional pair of exit doors and a flat rear pressure bulkhead increase seating capacity to 180 passengers in a 2-class configuration or 215 passengers in a single-class layout. Additional fuel capacity and standard winglets improve range to that of other 737NG variants.

The first 737-900ER was rolled out of the Renton, Washington factory on August 8, 2006 for its launch customer, Lion Air. Lion Air received this aircraft on April 27, 2007 in a special dual paint scheme combining the Lion Air lion on the vertical stabilizer and the Boeing livery colors on the fuselage. Lion Air has orders for 166 737-900ERs as of August 2011.

On August 22, 2011, it was reported that Delta Air Lines had placed an order for 100 737-900ERs, the largest single order for the type.

A total of 52 -900s, 82 -900ERs, and 6 -900 BBJs have been delivered with 183 unfilled orders as of January 2011.

www.boeing.com

Contact:
Mike Tull
737 Program Communications
+1 206-304-7164
michael.j.tull@boeing.com

Kevin Yoo
International Communications
+1 206-766-2906
kevin.k.yoo@boeing.com

SOURCE Boeing

*Link for This article compiled by Roger Smith from reliable sources Boeing
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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DTN News - AIRLINES NEWS: Boeing, Virgin Australia Announce Order For 23 737 MAX

Defense News: DTN News - AIRLINES NEWS: Boeing, Virgin Australia Announce Order For 23 737 MAX
*Order includes options for four additional 737 MAX airplanes

Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada - July 9, 2012:  Boeing [NYSE: BA] and Virgin Australia today finalized a firm order for 23 fuel-efficient 737 MAX airplanes with options for four additional 737 MAX airplanes.

With this order, Virgin Australia becomes the first Australian airline to finalize an order for the new 737 MAX, while adding to their existing fleet of 68 Next-Generation 737 airplanes.


"Boeing shares a longstanding relationship with Virgin Australia and we are honored to partner with Virgin once again as the country's first customer for the new 737 MAX," said Brad McMullen, Vice President of Japan & Oceania Sales, Boeing Commercial Airplanes. "The 737 MAX will provide passengers with unrivaled comfort as well as tremendous economics and reliability to Virgin Australia's growing operations," McMullen said.

The 737 MAX will deliver the big savings in fuel that airlines want. Powered by the CFM International LEAP-1B engines, it reduces fuel use by an additional 13 percent over today's most fuel-efficient single-aisle airplanes. The 737 MAX's more efficient structural design, less engine thrust and less required maintenance also add up to substantial cost advantages for customers. The 737 MAX 8 will have the lowest operating costs in the single-aisle segment, with an eight percent per-seat advantage over its competitor.

Virgin Australia established its operations in Australia with two Boeing 737 airplanes in August 2000. The airline operates a mix of 73 narrow and wide body Boeing airplanes.
Ailerons for all Boeing 737 airplanes are manufactured in Australia by Boeing Aerostructures Australia.

Since 2006, Boeing has discussed replacing the 737 with a "clean sheet" design (internally named "Boeing Y1") that could follow the Boeing 787 Dreamliner. A decision on this replacement was postponed, and delayed into 2011.

In 2010, Airbus launched the Airbus A320neo, a single-aisle jet aircraft which incorporated a new engine to improve fuel burn and operating efficiency. The decision was met with positive reaction by many airlines, which began making major orders for the improved aircraft, notably from AirAsia and IndiGo. This put pressure on Boeing and on August 30, 2011, Boeing's board of directors approved the Boeing 737 MAX project. Boeing claims the 737 MAX will provide a 16% lower fuel burn than the current Airbus A320, and 4% lower than the Airbus A320neo. 


Boeing expects the 737 MAX to meet or exceed the range of the Airbus A320neo. The first of new variant is scheduled to be delivered in 2017.

The three variants of the new family are the 737 MAX 7, the 737 MAX 8 and the 737 MAX 9, which are based on the 737-700, −800 and −900ER, respectively. which are the best selling versions of the 737 Next Generation family. Boeing has stated that the fuselage lengths and door configurations from the Boeing 737 Next Generation family will be retained on the 737 MAX variants.

Initially, the customers for the 737 MAX were not disclosed, except for American Airlines. On November 17, 2011, Boeing released the names of two other customers - Lion Air and Aviation Capital Group. At that time, Boeing reported 700 commitments from 9 customers for the 737 MAX. On December 13, 2011, Southwest Airlines announced they would be the launch customer for the 737 MAX with a firm order of 150 aircraft and 150 options. In December 2011, Boeing has 948 commitments and firm orders from 13 customers for the 737 MAX.
Norwegian Air Shuttle has announced in January 2012 an order for 100 Boeing 737 MAX airliners, along with 22 Boeing 737-800 and 100 Airbus A320neo aircraft. This is the first European order for the 737 MAX and the entire order is valued at $11.4 billion. In July 2012, Virgin Australia announced an agreement to order 23 Max aircraft.

For more information go to boeing.com/newairplane/737max/virgin-australia  

Contact:

Allison Bone
Boeing Australia Communications
+61-2-9086-3300
allison.bone@boeing.com

Kevin Yoo
Boeing Commercial Airplanes Communications
+1 206-766-2906
kevin.k.yoo@boeing.com

SOURCE Boeing

*Link for This article compiled by Roger Smith from reliable sources Boeing
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DTN News - AIRLINES NEWS: Australia-Europe Non-Stop Flights Promised By Long-Range Aircraft, But Airlines Don't See Demand

Defense News: DTN News - AIRLINES NEWS: Australia-Europe Non-Stop Flights Promised By Long-Range Aircraft, But Airlines Don't See Demand
Source: DTN News - - This article compiled by Roger Smith from reliable sources CAPA -Aviation Analysis
(NSI News Source Info) TORONTO, Canada - May 28, 2012: The Australian market continues to be excited by the prospect of non-stop flights between Australia and Europe as new technology aircraft arrive, but the reality is their excitement does not convert into sustainable yields, making it unlikely in the foreseeable future for such flights to be operated.

Stiff competition – European carriers have pulled out while British Airways (BA) and Qantas whittle their presence – has reduced the route to one that is fought on cost, where intermediate Asian and Middle East network carriers have an advantage. Geography also poses disadvantages: an ultra long-haul route to asingle European point would still require onward European connections, diminishing much of the advantage of the non-stop service. And while arguments continue about whether Qantas should have ordered Boeing777s instead of 787s, the reality is that the 777 would probably have been of little help in Qantas' current position.

The ultra long-haul proposition is a difficult one. For similar reasons to Qantas, Southeast Asian carriers equally have struggled with their non-stop services to America. These services are primarily point-to-point, which necessarily forgoes many of the advantages of network economics.

Retaining stops in Asia permits attracting regional traffic and, pending bilateral agreement revisions with Europe, paves the way for a new transfer hub in mainland China, bringing the associated benefits of demand from the area.

Non-stop Australia-Europe flights, typically going to London in most scenarios, have been evaluated by airlines, the most notable recent case being Qantas' consideration of Boeing 777-200LR aircraft in 2005. Qantas ruled out the aircraft in Dec-2005 because, for weather reasons, certain months of the year would not allow a full payload. Those few months were to become a blessing to Qantas. Aviation was a remarkably different and less competitive world in 2005. Emirates was not the giant it is today, Etihad was barely two years old and had yet to enter Australia and fuel could occupy only 15% of total costs.

ULTRA-LONG-HAUL POINT-TO-POINT SERVICES CONTINUE TO BE A COMMERCIAL CHALLENGE

Ultra-long-haul point-to-point flights have proved to be a global struggle. Singapore Airlines has at times cut back on its non-stop services to Los Angeles and Newark; during the GFC load factors on the all-business class service, which is operated with A340-500s, dipped below 50%. Thai Airways ended its A340-500 non-stop flights to New York in 2008 and earlier this year ended its non-stop service to Los Angeles. Delta, which at one point studied its own non-stop flights to Singapore with 777-200LRs but quickly ruled it out, and American Airlines have each ended their non-stop services to India.

Nuances abound but the common theme is one-stop competition and limited O&D demand that is further aggravated by high fuel prices, from which even hedging strategies cannot fully insulate airlines.
See related articles:

• Non-stop US-India market continues to shrink with American Airlines ending Chicago-Delhi service
• Why Singapore Airlines is reducing Houston to less than daily service
• Rising jet fuel price spells more challenges for ultra long-haul flights

Since 2005 aircraft profiles have improved but market conditions have not for non-stop Australia-Europe services. This year's first wave of excitement came with the potential for Boeing's 777 successor to fly non-stop between Australia and Europe year-round. A second wave came recently with Airbus discussing conceptual performance for an enhanced A380.

Neither airframe is captivating carriers.

Neither airframe is captivating carriers. British Airways no longer views the market between Europe and Australia as core. At the end of Mar-2012 BA ended Bangkok-Sydney services, leaving only aSingapore-Sydney flight as part of a Europe-Australia network reduction conducted with joint service agreement partner Qantas. But even before the change, premium traffic was down considerably between the two continents. For all three months of 2012 that IATA has reported on premium traffic trends, Europe-Southwest Pacific has typically seen the sharpest declines by far: 16% in Jan-2012, 19% in Feb-2012 and 24% in Mar-2012. Without premium traffic prepared to pay an additional margin for the convenience of a non-stop, the route would struggle.

BA's pessimistic view comes with it already operating the 777, potentially making a 777 successor integration easier than at Qantas, which does not operate the 777. But even then the longest range version of the 777 successor, which could potentially operate the non-stop flights, would become a niche aircraft in BA's fleet, an undesirable position.

International premium traffic growth by route: Mar-2012

Source: IATA

While the 777 successor would conceptually reach Sydney from Australia, an improved A380 would barely make it to Perth – and that of course is at the airframe manufacturer's best case calculation. Domestic connections from the far more populous eastern Australia would still be required and connections through Singapore, Qantas' main Asian hub, would still offer a shorter journey time. A potential service from Perth would come at the partial expense of the Singapore hub, which not only provides local traffic but also cargo. Qantas' planned premium carrier, postponed for the short term, would have provided feed for its long-haul services.
See related article: Qantas may say Malaysia Airlines negotiations are over, but many more chapters still to be written

It was on the back of network feed that Continental Airlines, now part of United Airlines, announced a 787 route to Auckland from its home hub atHouston. As CEO Jeff Smisek rhetorically asked, this ultra long-haul route was not about point-to-point traffic: "How many Kiwis live in Houston who want to fly to Auckland on a daily basis?" he asked. "Three?" United's network and that of Star Alliance, combined with the efficiency of the 787, made the route economically possible, Mr Smisek said.

...connecting traffic is limited at both ends...

Australia-Europe non-stop lacks an efficient aircraft like the 787 – Air New Zealand has referred to the 777-200LR as a "flying petrol tank" – and connecting traffic is limited at both ends. The Australian market is small, while in Europe, connections from London would require backtracking to continental Europe, reducing the time saved going non-stop to London compared to a one-stop through Asia or the Middle East. Further, following United's announcement in May-2012 to deploy its 787 between Tokyo and Denver, the new combination hinted that its proposed Houston-Auckland service no longer has its favoured position.

See related article: New Denver-Tokyo 787 service to help boost United's sagging trans-Pacific performance

QANTAS' EUROPEAN PRESENCE COMPARED TO EMIRATES, BUT THE TWO ARE ON DIFFERENT SCALES

Prior to BA and Qantas' Mar-2012 Australia-Europe restructure, Emirates typically operated approximately 22,000 one-way seats into London area airports compared to 12,000 from Qantas. Qantas' 12,000 seats were dependent on the markets of Australia and New Zealand as well as its three Asian transfer points: Bangkok, Hong Kong and Singapore, a population pool of around 45 million.

For Emirates to fill its capacity into London, it has not only all of Qantas' markets but also additional points throughout North Asia, Southeast Asia, South Asia, the Middle East and Africa (the traffic also obviously fills other points besides London). India alone has a population of 1.3 billion, and while travel propensity there may be low, it does indicate that Qantas was simply over-exposed to Europe. To bemoan a smaller presence in Europe from Qantas than Emirates, as has been done in the public, is a non sequitur.

QANTAS WRONGLY CRITICISED FOR LACK OF 777

Emirates has also been praised for its prolific fleet of 777s, the lack of which in the Qantas fleet has been a contention with its pilot union. The reality is that, even if Qantas had 777s prior to its 2005 examination of the -200LR, the viability of the -200LR would have been far from certain.Virgin Australia around its launch (and prior to the strategy from a new management that favours virtual flying) evaluated the -200LR to supplement its -300ER but also ruled the aircraft out for non-stop services to Europe and New York.

Qantas has rightfully defended its position against its decision to order the 777. The 777 either has not offered sufficient payload or, when it did, Qantas had already committed to other fleet strategies. "By the time the first B777-300ER was delivered in [2004] with the payload range to match Qantas B744 operations, we were already committed to the A380s. A good decision, because the A380s have a 7 per cent unit cost advantage over the 777-300ER," Qantas CEO Alan Joyce remarked in Oct-2011. Additionally, when the first -300ER was delivered, its full capability was not realised by many airlines. Indeed, at the time of delivery the -300ER had orders for 77 frames; today the figure is over 600. Not even Emirates ordered the -300ER before the first delivery, and Cathay Pacific, another -300ER proponent, would not order its first example until Dec-2005.

...the 787 is the aircraft of the future...

At that time Qantas had planned its high capacity needs – it was expecting its first A380s shortly – and was evaluating its medium-gauge widebody needs, a role ideal for the 787. "It would have been a retrograde step at that point to revert to the 777s because by then they were already an older generation of technology, where the 787 is the aircraft of the future. It has a 25% trip cost advantage over the 777-300ER," Mr Joyce said.

When remarks have been made about how Qantas should have ordered the 777, what is actually implied is the aircraft's capability. And what is meant by comments that Qantas should have ordered the 777 is that Qantas needs an efficient medium/high capacity aircraft – yet that is exactly the role the 787 will fulfill, with the early -8 variant overlapping with the 777-200ER.

Qantas was a major purchaser of the 787 – with all the bargaining economics that would have delivered – but no-one expected such a lengthy delay in deliveries. The issue of the lack of the 777 has come to a head because those 787 delays have left a gap in Qantas' fleet, but a similar issue is replicated at airlines throughout the world. Few airlines sufficiently shielded themselves from 787 delays; exceptions are a handful of carriers that ordered 767s or refurbished older aircraft. It is an understandable outcome: each delay was incremental, pushing first delivery off but never enough in one delay announcement to warrant a significant change in strategy.

CHALLENGES AT QANTAS ARE NOT FLEET CHOICES OR DESTINATIONS – BUT A CHANGED WORLD

The world has changed around Qantas and the carrier, being at the end of the line, is increasingly challenged, as is its neighbour Air New Zealand. Destinations and aircraft types are not the silver bullet to reverse these developments; whatever city or aircraft you have, your competitor can have too. Qantas is unique, not just as an end of line carrier, but for its Jetstar LCC that has captured growth in a strong market and, internationally, helped feed passengers back into Qantas' traditional market.

Another solution is to work with who you can engage partners, now the cornerstone of Virgin Australia's international strategy. The latest development is commentary from Emirates that it would be open to partnering with Qantas, but this may become controversial as oneworld, led by IAG CEO Willie Walsh, sizes up one of Emirates' competitors – likely Qatar Airways – for a partnership.

...it will still be no silver bullet...

An Emirates relationship would be a hard nosed recognition of how the world has changed in the past few years but it will still be no silver bullet.
Meanwhile, the prospect of Europe-Australia non-stops seems destined to remain a conversation piece for pilot blogs rather than a medium-term reality.

---

You may also be interested in the following articles...

• Qantas restructures in a bid to wrest back the initiative in a turbulent world
  22-May-2012
  Qantas today announced a substantial reorganisation of its management structure designed to create greater accountability and transparency among its different business units. This comes at a time when the international aviation scene is in a greater state of turbulence than ever before, with alliance and partnership relationships reaching a critical stage.
  Splitting domestic and international operations into two separate business units and giving each its own separate P&L is not a unique strategy in any industry and arguably at a time like this gives the Group a better handle on formulating strategy for the future.
  Coming in the wake of local competitor Virgin Australia dividing its domestic and international businesses into what are effectively separate companies (something that Qantas is unable to do, thanks to political restrictions set in the Qantas Sale Act), this does also set Qantas up for something similar in the future.
• Air Nigeria to resume long-haul network as West African aviation grows
  19-Apr-2012
  Air Nigeria is resuming its long-haul network after services were cut during a period of restructuring, ownership transfer and re-branding three years ago. The privately held flag carrier, formerly known as Virgin Nigeria and briefly as Nigeria Eagle Airlines, will resume long-haul services in May-2012 to London Gatwick and Johannesburg with plans in the short-term to launch Rome and Paris services.
  The Lagos-based carrier has had a false start, expecting last year to resume long-haul flights in Sep-2011, but plans this time are more concrete, with Air Nigeria loading schedules and fares. Its planned services will see notable competition, but like many routes in and out of Africa, are typically high-yielding. Air Nigeria’s forthcoming Lagos-London route is the latest in West Africa-Europe expansion, following notable capacity increases from Brussels Airlines.

*Link for This article compiled by Roger Smith from reliable sources CAPA - Aviation Analysis
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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