DTN News - AIRLINES NEWS: Boeing, Air China Finalize Order for Six 777-300ERs

DTN News - AIRLINES NEWS: Boeing, Air China Finalize Order for Six 777-300ERs
*Boeing and Air China today announced an order for six additional 777-300ER (Extended Range) jetliners

Source: DTN News - - This article compiled by K. V. Seth from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada - January 8, 2016: Boeing [NYSE:BA] and Air China today announced an order for six additional 777-300ER (Extended Range) jetliners. The order is valued at more than $2 billion at current list prices and bolsters Air China’s long-haul widebody fleet as it looks to expand its international network.

“The 777-300ER has consistently proved its value as a long-haul flagship for our customers around the world, making it the preferred choice for Air China’s international expansion,” said Ihssane Mounir, senior vice president, Northeast Asia Sales, Boeing Commercial Airplanes. “This order reflects the strength of our decades-long relationship with Air China and we look forward to partnering with Air China on additional opportunities in the future.”

China’s flag carrier continues to modernize its long-haul fleet to replace aging aircraft and plans to expand its growing network internationally. Air China currently operates a fleet 174 Boeing airplanes, including nearly all current Boeing production models, including the Next-Generation 737, 747-8 Intercontinental as well as 777-300ERs.

With this new order, Air China will increase its unfilled airplane orders with Boeing to 90 units, which include orders for new 787-9 Dreamliners.

The 777-300ER is one of the most fuel and cost-efficient airplanes in its class as well as the most reliable twin-aisle aircraft in the world. It also has the highest cargo capability of any passenger airplane in service. The 777-300ER will receive further improvements in 2016 designed to reduce fuel use by another two percent.

*Link for This article compiled by K. V. Seth 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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DTN News - BOEING NEWS: Boeing Announces Sixth Leg of 787 Dream Tour

Defense News: DTN News - BOEING NEWS: Boeing Announces Sixth Leg of 787 Dream Tour
Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada - April 11, 2012: Boeing (NYSE: BA) will bring the 787 Dreamliner to seven more cities on the sixth leg of the Dream Tour later this month and continuing into May. Stops include cities in the U.K., Norway, Italy and the U.S.

"The Dream Tour has provided us with a great platform to show customers, partners, government officials and other stakeholders just what the team has achieved with the 787," said Larry Loftis, vice president and general manager of the 787 program. "It's an honor to showcase this airplane as we bring it around the world."

The airplane will depart from Seattle on April 21. The dates listed below are landing dates for each city or airport. Customers, employees, partners, government officials and other stakeholders will be invited to attend tour events at each location. There are no general public tour opportunities.

• April  22– London's Heathrow Airport
• April  23 – Manchester Airport
• April 25 – London's Gatwick Airport
• April 27 – London's Heathrow Airport
• May 1 – Oslo, Norway
• May 4 – Taranto, Italy
• May 7 – Ronald Reagan Washington National Airport - Washington, DC
• May 11 – Dallas, Texas
• May 14 – St. Louis, Missouri

More than 44,500 guests from around the world will have toured the airplane at the end of the fifth segment of the tour later this week and the airplane will have logged more than 82,366 nautical miles (152,542 km). The sixth segment will add an estimated 12,750 more guests and an additional 15,500 nmi (28,702 km).

The Dream Tour airplane, ZA003, is outfitted with the 787's special cabin features including a welcoming entryway, dramatically larger dimmable windows, bigger bins and dynamic LED lighting. The airplane is configured with a luxurious business-class cabin, an overhead crew rest compartment and an economy class section.

Dates and locations for additional tour stops will be announced approximately one month in advance. At many of the stops, local media will have the opportunity to participate in tours of the airplane and discussions with Boeing executives and pilots.

For updates on the 787 Dream Tour, including videos, photos and reports from the tour stops, visitwww.newairplane.com/787/dreamtour.

Contact:
Lori Gunter
787 Communications
+1 206 931 5919

*Link for This article compiled by Roger Smith from reliable sources Boeing
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DTN News - AIRLINES NEWS: Boeing 787 Dreamliner For Air India Debuts In New Delhi

Defense News: DTN News - AIRLINES NEWS: Boeing 787 Dreamliner For Air India Debuts In New Delhi
>14-hour non-stop flight marks first visit to India for airplane painted in Air India colors
Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada / NEW DELHI, - March 12, 2012: After a 14-hour non-stop flight from Seattle, a Boeing (NYSE: BA) 787 Dreamliner in Air India's colors touched down at Indira Gandhi International Airport in New Delhi today.

"We're proud to bring the world's most advanced commercial airplane to India, especially when it proudly displays the colors of national flag carrier Air India," said Dinesh Keskar, senior vice president of Asia Pacific and India Sales for Boeing Commercial Airplanes. "This week even more of our airlinecustomers will experience the game-changing technologies and innovations the 787 has to offer."

The 787 will be on static display in New Delhi before debuting at India Aviation 2012 in Hyderabad on March 14. The Dreamliner that will be showcased is outfitted in Air India's livery and an inviting passenger interior featuring full business and economy-class cabins.

Made from composite materials, the Boeing 787 Dreamliner is the first airplane to provide both long distance capabilities with mid-size capacity. This capability will allow airlines like Air India to profitably operate non-stop routes to many more distant cities, providing choices preferred by the traveling public.

As a result of innovative technologies, the airplane offers unparalleled operating economics, fuel efficiency and passenger comfort. More than 800 787s are on order by 60 customers, a testament to the airplane's unique capabilities.

Air India Fleet
Aircraft	In service	Orders	Passengers				Notes
			F	J	Y	Total
Airbus A319	24	—	0	0	144	144	5 dry leased
Airbus A320-200	18	—	0	20	126	146	6 dry leased
Airbus A321-200	20	—	0	20	152	172
Airbus A330-200	2	—	0	24	255	279	both dry leased
Boeing 747-400	5	—	12	26	385	423	2 dry leased
Boeing 777-200LR	8	—	8	35	195	238	5 to be leased out
Boeing 777-300ER	12	3	4	35	303	342
Boeing 787-8	—	27	0	18	238	256[2]	First aircraft delivery March 2012[3]
Total	89	30

Contact: 
Wilson Chow
International Communications
Boeing Commercial Airplanes
+1 425-306-5921
wilson.chow@boeing.com

Bhawna Singh
Corporate Voice | Weber Shandwick
+91 989 9158658
bhawna@corvoshandwick.co.in 


*Link for This article compiled by Roger Smith from reliable sources Boeing
*Speaking Image - Creation of DTN News ~ Defense Technology News 
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DTN News - AIRLINES NEWS: Boeing, Air Astana Announce Order For Four 767-300ERs And Three 787 Dreamliners

Defense News: DTN News - AIRLINES NEWS: Boeing, Air Astana Announce Order For Four 767-300ERs And Three 787 Dreamliners
- Represents single largest order for commercial airplanes in Kazakhstan
Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada - March 1, 2012: Boeing (NYSE: BA) and Air Astana have announced an order for four 767-300ERs (Extended Range) and three 787-8s. The order is valued at $1.3 billion at current list prices, making this the largest single order for commercial airplanes in Kazakhstan's history.

"Our decision to order the Boeing airplanes is part of Air Astana's long-term growth strategy to expand and modernize our fleet with newer, more fuel-efficient airplanes to serve domestic, regional and international routes," said Peter Foster, president, Air Astana.  "In addition, we want to offer an enhanced travel experience for our customers which we shall be able to do on these airplanes."          

In addition to bringing big-jet ranges to mid-size airplanes, the 787 provides airlines with unmatched fuel efficiency using 20 percent less fuel than today's similarly sized airplanes. Passengers will also see improvements on the 787, from an interior environment with higher humidity to increased comfort and convenience.  

The Boeing 767 family is a complete family of clean, quiet, fuel-efficient airplanes that provide maximum market versatility in the 200- to 300-seat market. Boeing has delivered more than 1,000 767s that are flown by over 120 operators around the world.

"We are extremely pleased that Air Astana has partnered with Boeing to participate in the region's growing air transport market," said Marty Bentrott, vice president of sales for Middle East, Russia and Central Asia, Boeing Commercial Airplanes. "Today, airlines are increasingly looking at lower operating costs and fuel efficiency without compromising on technological innovations and customer experience. We are confident that both the 767-300ER and the 787 Dreamliner will play an important role as Air Astana continues with its expansion plans."

Contact:

Saffana Michael
Boeing Commercial Airplanes
+9 7150-4590651
Saffana.michael2@boeing.com

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DTN News - BOEING NEWS / AIRLINES NEWS: Boeing, Oman Air Announce Order For Six Boeing 787 Dreamliners

Defense News: DTN News - BOEING NEWS / AIRLINES NEWS: Boeing, Oman Air Announce Order For Six Boeing 787 Dreamliners

- Order increases Boeing's 787 customer base in Middle East

Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing

(NSI News Source Info) TORONTO, Canada / DUBAI, United Arab Emirates, November 14, 2011: Boeing (NYSE: BA) and Oman Air, Sultanate of Oman's flagship carrier, today announced an order for six Boeing 787-8s at the Dubai Airshow.

The airline completed an arrangement with Boeing and Kuwait-based leasing company ALAFCO to transfer existing orders for the six Dreamliners from ALAFCO to Oman Air.

"Our decision to order the 787-8 is part of Oman Air's long-term growth strategy to expand and modernize our fleet with newer, more fuel-efficient airplanes," said Peter Hill, chief executive officer, Oman Air. "We see direct benefits because of the Dreamliner's fuel efficiency and operating economics as well as the enhanced travel experience that Oman Air will be able to offer its customers aboard this airplane."

In addition to bringing big-jet ranges to mid-size airplanes, the 787 provides airlines with unmatched fuel efficiency using 20 percent less fuel than today's similarly sized airplanes. The key to the exceptional performance of the 787 Dreamliner is a suite of new technologies, including advanced composite materials, systems, aerodynamics and engines. Passengers will also see improvements on the 787, from an interior environment with higher humidity to increased comfort and convenience.

Since its establishment in 1993, Oman Air has witnessed massive growth and has played a major role in making Muscat an important traffic hub in the Middle East. The airline currently operates direct international flights from Muscat to 41 destinations across the Gulf, the Levant, Europe, East Africa and Asia. Oman Air's commitment to quality, comfort and a seamless passenger experience has resulted in international acclaim, including major regional and international awards and an Official 4 Star Airline (Skytrax 2011) rating.

"Boeing and Oman Air share a decade-long partnership and we look forward to opening a new chapter together with the 787 Dreamliner," said Marty Bentrott, vice president of Sales for Middle East, Russia and Central Asia, Boeing Commercial Airplanes. "We see the 787 as a perfect complement to Oman Air's growing fleet, which will enable them to serve new destinations and enhance customer experience with the world's most advanced passenger jet."

Contact:
Saffana Michael
Boeing Commercial Airplanes
+9 7150-4590651
Saffana.michael2@boeing.com

Usama Al Haremi
Oman Air
+968 24519 616
Usama.alharemi@omanair.com

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

*Link for This article compiled by Roger Smith from reliable sources Boeing

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